The Board of Directors have immense pleasure
in presenting the 45th Annual Report of
National Cooperative Consumers’ Federation
of India Limited (NCCF) for the year 2009-10
together with the Audited accounts and Report
of the Auditors for the year ended 31st
March, 2010. |
| THE YEAR AT A GLANCE: |
As anticipated, the
year 2009-10 also turned out to be an year
of satisfaction to the organization. The
working results before you show that the
Federation achieved good results though
faced certain setbacks in some business
segments. This was mainly due to the changes
in the Government Policy and other factors.
However, the business of export tremendously
increased. The new business of import of
pulses with the support of Ministry also
helped the Federation in a big way in generation
of its revenue. The Government of India
appointed NCCF as one of the nodal agencies
for import of pulses for distribution through
PDS at subsidized rates. The Federation
during the year imported Green Moong &
Yellow Peas for the state of Rajasthan and
Lemon Toor & Black Matpe for Tamilnadu.
The Federation achieved sales turnover
of Rs. 1322.38 Crores including the business
of issuing N.O.C. for export of Onion
and recorded an all time high net profit
of Rs. 11.17 Crores before taxation and
Rs. 8.33 Crores after taxation during
the year.
|
In the present scenario
of globalization, in a time of rapid growth,
socio - economic changes happening all around,
entering of Organised Sector
in retail trade, and in the present era
of competition, the cooperatives can not
remain a silent spectator and look merely
at their traditional business in
the consumer sector. We too have to respond
to the challenges before us thrown by the
fast changing pattern of consumer needs
and endeavour doing
things better and faster with adoption of
new technology and professional Management
so that we may sustain. The consumer cooperatives
need diversification and need to adopt market
driven strategies for their commercial operations
for their sustenance. We are happy to report
that the Federation successfully met the
challenges with due care, as the results
for the financial year 2009-10 show.
|
The Federation has
also taken initiative to broad base its
commercial operations by entering into new
lines of business with a view to facing
new economic challenges and sustain its
survival. The Federation during the year
expanded its services into more areas and
attempted diversification in new lines of
business such as undertaking Housing projects,
construction and renovation of Hospitals,
construction of Cattle-sheds, development
of Agri related infra-structural projects,
supply of Agri-inputs etc. Besides this,
The Federation also took up import of pulses
for its distribution through PDS at subsidized
rates in different states. There are several
other business proposals and projects under
consideration. |
| FINICIAL RESULT |
The summarized financial results for
the year 2009-10 with comparative figures
of the previous year are given below:- |
| (Figures
in lakhs of Rs.) |
|
Seals |
2009-10 |
2008-09 |
A. |
Internal
Trade |
70495.99 |
49016.74 |
B. |
Foreign
Trade |
61742.85 |
36511.48 |
|
|
Total
Turnover (A+B) |
132238.84 |
85528.22
|
|
|
Gross
Margin |
2417.98 |
1462.34 |
|
Other
Receipts |
655.22 |
388.68 |
|
Total Income for the
Year |
3073.20 |
1851.02 |
B. |
Expenses |
|
|
|
Establishment
Expenses |
1490.33 |
1208.84 |
|
Administrative
Expenses |
369.02 |
337.13 |
|
Finance
Charges |
14.57 |
16.06 |
|
|
Selling
& Distribution Expenses |
51.56 |
45.64 |
|
Other
Expenses |
30.35 |
48.32 |
|
Total
Expenses for the year |
1955.83 |
1655.99 |
|
|
Profit
before Tax |
1117.37 |
195.03 |
|
|
Less
Income Tax |
284.37 |
36.78 |
|
|
Profit
after Tax |
833.00 |
158.25 |
|
|
| BUSINESS SCENARIO: |
| The Commodity-wise sales performance of
the Federation during the year 2009-10 alongwith
the corresponding figures for 2008-09 are
given as follows:-: |
(Figures
in lakhs of Rs.) |
Commodity
|
2009-10 |
2008-09 |
Grocery
(Including food grains, pulses
& spices) |
39887.77 |
27447.34 |
General
Merchandise |
13351.40 |
15659.50 |
Textiles |
3675.79 |
1949.31 |
Confiscated
Goods |
858.63 |
1058.20 |
Coal |
765.10 |
2902.39 |
Import/Export
(including outright & through
Associate shippers) |
61742.85 |
36511.48 |
| Agri-Inputs |
9591.79 |
- |
| New
Lines Of Business including Medicine |
442.82 |
- |
| Real
estate/Civil Construction |
1922.69 |
- |
Total |
132238.84 |
85528.22 |
|
|
| GROCERY: |
The Grocery business
increased from Rs.274.47 Crores in 2008-09
to Rs.398.87 Crores during the year under
review. This was mainly due to efforts made
in the business of supply of Imported Pulses,
domestic supply of foodgrains, and other
goods to the Cooperatives, State Agencies
and other buyers. The Federation procured
sizeable stocks of Paddy in West Bengal
during Khariff 2009-10 under Minimum Price
Support Scheme and is likely to expand it
in the new financial year in other states
also. |
| GENERAL MERCHANDISE/NEW LINE OF
BUSINESS: |
During the year under
review, the sales of General Merchandise
stood at the level of Rs. 133.51 Crores
during the year 2009-10 in comparison to
the sales of Rs. 156.59 Crores during the
year 2008-09. No significant impact of revised
order in respect of supply of stationery
and other office use articles to the Government
Departments was felt as far as the total
sales is concerned.. |
| TEXTILES: |
The sale of textiles
registered growth as compared to the previous
year. It was Rs. 36.75 Crores in the year
2009-10 as against the sales of Rs 19.49
Crores during 2008-09. Closure of many textile
mills in organized sector and entry of small
scale units from handloom and powerloom
section affected expansion of business in
this line of activity |
| COAL: |
The sales turnover
during the period under review was Rs. 7.65
Crores as compared to the turnover of Rs.
29.02 Crores during 2008-09. It has been
mainly the supply of imported coal in the
state of Andhra Pradesh. The main reason
for fall in sales of domestic coal is attributed
to new coal distribution policy of the Government. |
| IMPORT/EXPORT: |
The Federation as canalising
agency made significant increase in the
volume of work done in issuing the N.O.C.
to the exporters of Onion, The Federation
exported 3.89 lakhs MTs of Onion valuing
Rs.617.42 Crores through Associate Shippers,
as per guidelines of Ministry of Commerce,
Govt. of India. |
| CONFISCATED GOODS: |
The Federation, which
is an agency nominated by the Government
of India for lifting and for distribution
of confiscated goods from Customs, continues
to lift consumer confiscated goods on all
India basis. It distributed confiscated
goods comprising of various items to the
extent of Rs. 8.58 Crores during the year
as against the sales of Rs. 10.58 Crores
in the previous year. |
| REAL ESTATE/CIVIL CONSTRUCTION: |
During the year 2009-10,
the Federation achieved sales in Business
of Real Estate/ Civil Construction to the
tune of Rs. 19.22 Crores. |
| NEW LINES OF BUSINESS: |
| During the year 2009-10, the Federation
achieved sales in New Lines of Business to
the tune of Rs. 4.42 Crores, which is inclusive
of sale of Medicines and renovation of Hospitals
etc. |
| AGRI-INPUTS |
| Good
business of Agri Inputs like Seeds, Pesticides,
Bio-fertilisers and Bio-pesticides was developed
in some branches namely Patna, Kolkata,
Bhubaneswar, Lucknow and Kanpur etc. During
the year 2009-10, the Federation achieved
sales turnover of Rs. 95.91 Crores in Agri
Inputs Business.
|
| PROPOSED NEW LINES OF ACTIVITIES |
| With a view to diversifying its commercial
operations in the changed economic scenario,
the Federation has been making efforts to
explore possibilities of enhancing the existing
business and adding few new lines of business
some of which are outlined as follows :- |
• Enhancing the Import of pulses and
its supply to few more States, as one of the
nodal agencies appointed by the Govt. of India
for its distribution under PDS at subsidized
rates.
• Enhancing volume of procurement
of Paddy and taking up the procurement of
Rabi Crop in the state of West Bengal and
explore such business in other states.
• Undertaking procurement and supply
of items as per the schemes of State and Central
Govt. in order to contain the price line.
• Bulk procurement of agricultural commodities
and other consumer goods and disposal of the
same on commercial line.
• Develop
Housing Projects on the line of work undertaken
in Kolkata and strive to complete the on going
project.
• Undertake construction,
renovation and designing work of Hospitals
etc. on the pattern of work taken up in the
state of U.P. and expand it in other places.
• Expanding and enhancing the volume
of business of supply of Agri-inputs like
pesticides, insecticides, bio-fertilizers,
micronutrients, seeds etc. to the Government
agencies.
• To make concerted efforts
to develop Agri- related Infra-structure projects
and construction of storage space under different
Govt. Schemes including the schemes of organizations
like FCI,
CWC etc.
|
| STRATEGIES TO IMPROVE THE BUSINESS: |
It has been time and
again felt necessary to adopt an approach
to ensure improvement in the present business
and its future development and growth at
a desired level so as to achieve the targeted
results. There are huge opportunities but
there are areas where risks are also involved.
We had to get our strategy right, depending
upon our competence. And today looking back
we can safely say that we have grazed on
greener pastures and are looking forward
to consolidate the growth in the markets
and venture to new opportunities in which
there are good potentials for doing business
with public purpose and with lesser risks.
The following strategies are afoot to improve
the business of the Federation in the years
to come: |
• Upgradation of skills of employees
and infusion of
new professionals.
• Diversification of commercial operations.
• Involvement of the local members
in promotion of business.
• To introduce modern management system
and technology
in future business..
|
| MEMBERSHIP: |
The Membership of the Federation was
136 as on 31.3.2010 comprising of the following: |
| State
level consumer cooperative Federation |
20 |
| Large sized
Wholesale/Central/Primary Cooperatives |
112 |
| National level
Apex Cooperative Federations |
2 |
| Goverment
of India |
1 |
| NCDC |
1 |
| Total: |
136 |
|
|
| SHARE CAPITAL: |
| The paid-up share capital of the Federation
as on 31.3.2010 was Rs.13.79 crores(same as
the previous year) as detail below:-: |
| (Figures in crores of Rs.) |
| |
As
on 31.3.2010 |
As
on 31.3.2009 |
| Cooperatives |
3.03 |
3.03 |
| NCDC |
0.02 |
0.02 |
| Government
of India |
10.74 |
10.74 |
| Total |
13.79 |
13.79 |
|
|
| |
| HUMAN RESOURCE DEVELOPMENT: |
Human Resource is the
main foundation on which the Federation
has been fulfilling its obligations. The
development of human resource is key to
success in any commercial organization.
The Federation continued its efforts for
development of human resource and took several
measures for motivation of the work-force
and for upgrading their knowledge and skill
in different segments from time to time.
|
| INDUSTRIAL RELATIONS: |
The relations with employees are of utmost
importance for an organization. The periodical
meetings held between the representatives
of the Management and Union during the year,
were very useful and cordia. |
| COMPUTERISATION: |
The Federation continued
to strengthen the computerization network
in its Head Office, Branches and Sub- branches
in phases to improve the Management Information
System and other functional areas. The Federation’s
website “www.nccf-india.com.”
contains all relevant informations about
the organization and its functioning. The
Citizens Charter has been formulated and
is available on Website. |
| POPULARIZATION OF HINDI AS NATIONAL
LANGUAGE: |
NCCF is implementing
the Provisions of the Official Language
Act and continues to make vigorous efforts
to promote the use of Hindi in its day-to-day
work. Essay writing competition and debate
amongst the employees were conducted. In
order to promote and popularise the Hindi
language, incentives in form of Cash Prizes
to the employees and Rajbhasha Trophy to
a Branch were awarded for doing maximum
work in Hindi. The Managing Director attended
the meetings of the Hindi Advisory Committee
on official Language held at New Delhi on
13.11.2009 and 17.2.2010. During the year
the following events were organized to popularize
the use of Hindi in office work: |
| Quarterly Meetings
of Official Language |
4 |
Implementation Committee |
1 |
| Hindi Workshop |
4 |
| Hindi Diwas |
14/9/2009 |
| Hindi Pakhwaras |
1st
-15th September 2009 |
|
|
| PUBLICITY & MEMBER/PUBLIC RELATIONS: |
NCCF continued to project
its image with member institutions in particular
and consumer cooperatives in general and
with consumers, Central and State Govt.
Departments, Public Sector Organisations,
Institutions and business associates by
maintaining liaison and regular contacts
as also by participation in various exhibitions,
seminars and workshops. The Federation continued
to bring out its Quarterly Journal “Indian
Consumer Cooperator” containing latest
News on Consumer Cooperatives and information
on consumer interest and on NCCF.
NCCF in association with ICA – AP
organised the 43rd meeting of the Committee
on Consumer Cooperation for Asia and the
Pacific and Sub-Regional Seminar on Development
of Consumer Cooperatives in Asia on 9th
December, 2009 at Pune.
|
| VIGILANCE SET UP: |
The Federation’s
Vigilance Cell is headed by Chief Vigilance
Officer on deputation from the Govt. of
India. As a preventive measure, Vigilance
Cell conducted surprise checks and regular
inspections for reviewing the systems and
procedures in handling the commercial transactions.
Based on the feedback given by Vigilance
Cell, guidelines were issued to the Branches
and Sub-branches from time to time for adoption
of preventive and corrective measures while
dealing its commercial transactions. |
Vigilance Awareness
Week was organized from 3.11.2009 to 7.11.2009
at Head Office as well as at all the Branches
and Sub-Branches. |
| WORK PROGRAMME FOR
THE YEAR 2010-11: |
Against
the Sales Turnover of Rs. 1322 Crores for
the year 2009-10, a revised work programme
of Rs. 1500 Crores has been drawn up for
the year 2010-11 as against original Work
Programme of Rs.1115 Crores. |
LINKAGE
WITH THEMEMBER SOCIETIES |
The Federation has drawn up a plan of action
for establishing vertical linkage with the
member societies for mutual benefit and
collective initiatives in taking up consumer
and commercial activities. It has also prepared
a programme for improving the operational
efficiencies of the member cooperatives-
particularly the wholesale and primary cooperatives,
which is proposed to be implemented in stages. |
| ACKNOWLEDGEMENT: |
We take
this opportunity to offer our sincere thanks
and gratitude to Shri Sharad Pawar Ji the
Hon’ble Union Minister for Agriculture,
Consumer Affairs, Food & Public Distribution,
for his valued and continued support &
guidance. We also acknowledge the guidance
and support of Prof. K.V. Thomas, Hon’ble
MOS for Agriculture CA, Food & PD |
Our thanks
are also due to the Secretaries to the Govt.
of India particularly Deptt. of Consumer
Affairs, Deptt. of Food & Public Distribution,
Deptt. of Agriculture & Cooperation
, Ministry of Commerce, and Ministry of
External Affairs. Special thanks are also
due to the DOPT and Ministry of Finance
for allowing the extension of GFR on procurement
of office use articles by the Govt. Organizations
by another two years.
We are also grateful to
the other Central Govt. Departments., State
Governments and State Agencies for using
the infra-structure of the Federation for
procurement of there various requirements
from time to time.
Our sincere gratitude is
also due to the Central Registrar, Cooperative
Societies and Registrars of Cooperative
Societies of all States and Union Territories
for their guidance in the promotion and
development of the consumer cooperatives.
|
We thank
International Cooperative Alliance (ICA)
for their continued support and guidance
in various fields particularly in the field
of arranging global training programmes.
We express our sincere
thanks to the Managements of all the Member
State Consumer Cooperative Federations,
Cooperative Marketing Federations, `Wholesale/
Central Stores for their active support,
participation and contribution in the progress
of the Federation. |
We thank
the NCUI, NAFED, VAMNICOM, NCDC, WFP, APO,
APEDA, FCI, CWC, Business Associates, other
organisations, valued customers and clients
for their cooperation and support. We also
acknowledge the prompt and efficient services
rendered by our Bankers viz. Central Bank
of India, UCO Bank, J&K Bank, Union
Bank of India and Federal Bank. |
We place
on record our appreciation for the commitment,
dedication, hard work and devotion to duty
shown by the officers and staff of the Federation
at all levels. We acknowledge that but for
their sustained continued efforts, the growth
of business and profitability as witnessed
now could not have been possible
This report is concluded
with happy note of good business done during
the year 2009-10 and it is expected that
the next year will be even more promising
and will bring new laurel and new feathers
to the cap of your Federation. |
For & on behalf
of the Board of Directors |
| (VIRENDRA
SINGH) |
| CHAIRMAN |
|
