Annual Report Palakkad Coconut Producer Company Ltd

For the year 2015-16 1 September 2016 keralacoconut.com

i Contents

1 Corporate Information 1 1.1 List of Directors as on the date of AGM held on 29.09.2015 ...... 1 1.2 Auditors ...... 1 1.3 Registered oﬃce ...... 1 1.4 CIN Number ...... 1

2 Notice to members 2 2.1 Notes for Member’s attention: ...... 4 2.2 Annexure to the notice: ...... 6

3 Directors Report 9 3.1 Financial results: ...... 9 3.2 Divident: ...... 9 3.3 Market overview: ...... 9 3.4 Capital: ...... 10 3.5 Directors: ...... 10 3.6 Deposits: ...... 10 3.7 Particular of employees: ...... 10 3.8 Energy Conservation, Technology Absorption and Foreign exchange outgo: . . . . . 10 3.9 Auditors: ...... 10 3.10 Directors responsibility Statement: ...... 10 3.11 Appreciation: ...... 11 3.12 Qualiﬁcation by Auditors: ...... 11

4 Status of Agriculture and Value addition activities 12 4.0.1 Structure of PCPCL ...... 12 4.0.2 Replanting and Rejuvenation of Coconut Gardens ...... 12 4.0.3 Supply of biofertilizers and bio pesticides ...... 14 4.0.4 Drip Irrigation ...... 14 4.0.5 Procurement of Coconut ...... 14 4.0.6 Neera production and processing in Mangalore ...... 15 4.0.7 Neera production in Palakkad ...... 15 4.0.8 Training to Neera Technicians ...... 16 4.0.9 Coconut Points ...... 17 4.0.10 Kalpakashree debit card and term-loan ...... 18 4.0.11 Link up with research Institutions ...... 18 4.1 Research and Development ...... 18 4.1.1 Product innovation ...... 19 4.1.2 Technology innovation ...... 19 4.2 Role of Coconut Development Board ...... 19

ii 5 Management Discussion and Analysis Report 21 5.1 Industry scenario ...... 21 5.2 Opportunities: ...... 21 5.3 Threats & Concerns: ...... 23 5.4 Outlook ...... 24 5.5 Internal control system and their adequacy ...... 25 5.6 Discussion on ﬁnancial performance ...... 25 5.7 Material developments in resources ...... 25 5.8 Cautionery statement ...... 25

6 Corporate Governance Report 26 6.1 Company’s philosophy on code of governance ...... 26 6.2 Board of directors ...... 26 6.3 Committee of board of directors ...... 27 6.3.1 Audit committee ...... 27 6.3.2 Nomination and remuneration committee ...... 27 6.3.3 Stakeholders relationship committee ...... 28 6.3.4 Risk management committee: ...... 28 6.3.5 Code of conduct ...... 29 6.3.6 Familiarisation programme for directors ...... 29 6.3.7 Board diversity ...... 29 6.4 Annual general meetings ...... 30 6.5 Disclosures ...... 31 6.6 General shareholders information ...... 32 6.7 Certificate of compliance with code of conduct policy ...... 33 6.8 Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Certification . . . 34

7 Auditors certiﬁcate on Corporate Governance 35

8 Independent Auditors report 37

9 Balance sheet & Proﬁt & Loss statement 45

10 Cash Flow Statement 48

11 Shareholding pattern 51

12 Annexure to Directors Report 59

iii 1 Corporate Information

1.1 List of Directors as on the date of AGM held on 29.09.2015 1. Pazhanimala Sudevan, S/o Pazhanimala Ponnu R/o 462A(6/301A), Chemmanamthode, At- tayampathy, Muthalamada, 678507, Kerala, India, appointed on 26.6.2013

2. Thorakkattil Mohammed S/o Thorakattil Koyanni R/o 324, Thorakkatil 1, Alanallur, Man- narkkad, 678582, Kerala, India, appointed on 26.6.2013

3. Kunjikrishnan Sasidharan S/o Kunjikrishnan R/o 543, 1, Perumatty, Chittur,678581, Kerala, India, appointed on 26.6.2013

4. Arimboor Madam Ramachandran S/o Thenazhikkalam Sankunni Nair R/o 106 (5/506), Arim- bur Madam, 3, Kalluvazhi, Pookottukavu,678634, Kerala, India, appointed on 26.6.2013

5. Maruthacode Kuttan Ramadas S/o Kuttan R/o 650, 7, Erimayur, Alathur, 678546, Kerala, India, appointed on 26.6.2013

6. Thomas S/o Joseph, R/o 674, Oulikkal, 5, Kanhirapuzha, Mannarkkad,678591, Kerala, India, appointed on 26.6.2013

7. Sankaran Radhakrishnan, 18A, Neelambari, Kadakurussi, Kannadi, Palakkad, Kerala,678701,In- dia, appointed on 29.9.2015

8. Joseph Nedungattu Luckose, Nedungattu, Pullisseri, Karakurissi, Palakkad, Kerala, 678582,In- dia, appointed on 29.9.2015

9. Sethumadhavan Krishnan, 272, Pattanchery, Chittur, Palakkad, Kerala, 676534,India, appointed on 29.9.2015

10. Pulintharakunnel Chandy Rajan, 278, Pulintharakunnel, Thachanpara, Palakkad, Kerala,678591,In- dia, appointed on 29.9.2015

11. Rama Sukumaran, Kongamparambil, Kainikoda, Thenkara Post, Mannarkkad-2, Palakkad, Kerala, 678582,India, appointed on 29.9.2015

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

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

1.4 CIN Number U01133KL2013PTC034397

1 2 Notice to members

Notice is hereby given that the 4th Annual General Meeting of the members of PALAKKAD CO- CONUT PRODUCER COMPANY Ltd will be held on Thursday, the 22nd September, 2016 at 10 AM at Registered Oﬃce, Urkulam, Govindapuram P.O Muthalamada, Palakkad, Kerala, PIN 678507 to transact the following businesses:

AS ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Balance Sheet and the Statement of Proﬁt & Loss Accounts for the year ended 31st March, 2016 together with the Report of the Board of Directors and the Auditors thereon.

2. To ratify appointment of Statutory Auditors to hold oﬃce from conclusion of this meeting until the conclusion of next Annual General Meeting and to ﬁx their remuneration.

3. To appoint a Director in place of Arimboor Madam Ramachandran, S/o Thenazhikkalam Sankunni Nair,(holding DIN 06599043) who retires by rotation and being eligible, oﬀers himself for re-appointment.

4. To appoint a Director in place of Pazhanimala Sudevan, S/o Pazhanimala Ponnu (holding DIN 06543421) who retires by rotation and being eligible, oﬀers himself for re-appointment.

5. To appoint a Director in place of Thorakkattil Mohammed S/o Thorakattil Koyanni, (holding DIN 06598951) who retires by rotation and being eligible, oﬀers himself for re-appointment.

6. To appoint a Director in place of Maruthacode Kuttan Ramadas, S/o Kuttan,(holding DIN 06599486) who retires by rotation and being eligible, oﬀers himself for re-appointment.

7. To appoint Sethumadavan, S/o Krishnan,(holding DIN 07373804) who retires by rotation and being eligible, oﬀers himself for re-appointment.

8. To appoint Joseph, S/o Lukose,(holding DIN 07333913) who retires by rotation and being eligible, oﬀers himself for re-appointment.

9. To appoint Radhakrishnan, S/o Sankaran,(holding DIN 07332896) who retires by rotation and being eligible,oﬀers himself for re-appointment.

10. To appoint Rajan, S/o Chandy,(holding DIN 07393392) who retires by rotation and being eligible, oﬀers himself for re-appointment.

11. To appoint Rama Sukumaran,W/o Sukumaran,(holding DIN 07471441) who retires by rotation and being eligible, oﬀers herself for re-appointment.

12. To appoint Jacob Kariyampalli Chacko,S/o Chacko 265, Kariyampalli House, Manakkalkad, Malampuzha-2, Palakkad, Kerala, 678651, India, as Director in place of Thomas S/o Joseph,(holding DIN 06599021) who retires by rotation

2 13. To appoint Krishnan Ravindran,S/o Krishnan, Mele Ezhuthani, Vandithavalam, Palakkad, Kerala, 678534 India, as Director in place of Kunjikrishnan Sasidharan S/o Kunjikrishnan, (DIN 06598994) who retires by rotation

14. To appoint Madhavan, S/o Raman, Mattummal, Manikkasseri, Kongad-1, Palakkad, Kerala, 678631, India as a new Director AS SPECIAL BUSINESS

15. To Consider and if thought fit, to pass with or without modifications, the following resolution: RESOLVED THAT the approval of the members of the Company be and is hereby accorded to issue further 50,000 number of shares of Rs. 100/- each aggregating to Rs 50 Lakhs of the Company without premium, using the equity grant given to the Company by Government of Kerala through the Kerala State Financial Corporation, as per the norms laid out in the related guidline, to be offered to various COCONUT PRODUCER SOCIETIES who are the existing shareholders of the Company, in terms of and subject to the provisions of the Companies Act, 2013 and any rules made there under and the provisions of the Memorandum of Association and Articles of Association of the Company. FURTHER RESOLVED THAT the Board of Directors be and is hereby authorised to do all the needful in the matter including issue and allotment of shares, informing the office of the Registrar of Companies and such other and further things that the Board feel may feel it to be necessary or expedient to do so in the interest of the Company.

On behalf of the Board of Directors Mohammed TK Chairman

Place:Palakkad. Date: 1st September, 2016

3 2.1 Notes for Member’s attention: 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY/PROXIES TO ATTEND AND VOTE ON A POLL INSTEAD OF HIMSELF/ HERSELF. SUCH A PROXY/PROXIES NEED NOT BE A MEMBER OF THE COMPANY. A person can act as proxy as per and subject to the provisions of the Articles of Association of the Company, on behalf of member if authorized by the concerned member. The instrument appointing the proxy should, however, is deposited at the Registered Oﬃce of the Company not less than 48 hours before the commencement of the Meeting. A Proxy Form is annexed to this Notice.

2. An explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013 relating to Special Businesses to be transacted at the Annual General Meeting is attached hereto.

3. The Register of Members and Share Transfer Books of the Company will remain closed from 16th September, 2016 to 22nd September, 2016 (both days inclusive).The dividend, if declared, will be paid to those members whose name appears on the Register of Members of the Company as on 23rd September, 2016.

4. To support the Green Initiative, the Members who have not registered their e-mail addresses are requested to register the same with Registrars and Share Transfer Agent/Depositories.

5. Electronic copy of the Annual Report As part of the Green Initiative of the Ministry of Corpo- rate Aﬀairs, the members who wish to receive notice/documents through e-mail may kindly in- timate their e-mail addresses to the Company’s Compliance Oﬃcer at [email protected]

6. Pursuant to the provisions of Section 205A(5) and 205C of the Companies Act, 1956, the Company has not to transfer the unpaid or unclaimed dividend for a period of seven years from the date of transfer to unpaid Dividend Account of the company to be credited to the Investor Education and Protection Fund (the IEPF). Accordingly, no amount is required to be transferred to the Investor Education and Protection Fund from time to time. All persons are requested to note that no claims shall lie against the Company or the said fund in respect of any amounts which were unclaimed and unpaid for a period of 7 years from the dates that they ﬁrst become due for payment and no payment shall be made in respect of any such claims.

7. Members are requested to send all their documents and communication pertaining to shares to the registered oﬃce of the Company at their address Little Tree, Urkulam, Govindapuram.P.O, Muthalamada, Palakkad, Kerala,India, PIN 678507.

8. Members holding shares in the same name under different ledger folios are requested to apply for consolidation of such Folios and send the relevant share certificates to the registered office of the company for their doing needful.

4 9. Members are requested to notify change in address, if any, immediately to the registered oﬃce quoting their folio numbers.

10. It is now mandatory to furnish a copy of PAN card to the Company or its RTA in the following cases viz. Transfer of shares, Deletion of name, Transmission of shares and Transportation of Shares. Shareholders are requested to furnish copy of PAN card for all the above mentioned transactions.

11. Details in respect of the Directors seeking appointment/re-appointment at the Annual General Meeting, forms part of the notice. The Directors have furnished the requisite declarations for their appointment/re-appointment.

12. To prevent fraudulent transactions, members are advised to exercise due diligence and notify the Company of any change in address as soon as possible.

13. Members may also note that the Notice of the 4th Annual General Meeting and the Annual Report 2015-16 will also be available on the Company’s website www.keralacoconut.com for being downloaded. The physical copies of the aforesaid documents will also be available at the Company’s Registered Oﬃce for inspection during normal business hours on working days till the date of the meeting. Even after registering for e-communication, members are entitled to receive such communication in physical form, upon making a request for the same.

On behalf of the Board of Directors Mohammed TK Chairman

Place:Palakkad. Date:1st September, 2016

5 2.2 Annexure to the notice: 1. Explanatory Statement as required under Section 102 (1) of the Companies Act, 2013 & the Listing Agreement setting out all material facts relating to the Special Business:

ITEM NO 15 & 16 Consequent to implementation of guidelines of Equity Grant by Government of Kerala through Kerala State Financial Corporation, consent of the Company is required approval of members by way of a special resolution to issue proportionate shares to existing share holders as on 31 March 2015 who had also applied for the same in prescribed format. The Board of Directors recommends the Resolution at Item No 15 & 16 or our approval as Special Resolutions, Directors, Key Managerial Personnel and their relatives who are members of the Company, may be deemed to be concerned or interested in this resolution to the extent of their shareholding in the Company to the same extent as that of every other member of the Company.

2. Details of Directors seeking appointment/re-appointment at the ensuing Annual General Meet- ing ﬁxed on Tuesday, the 22nd September, 2016 as required are given hereunder :-

Name of Director Sudevan P Mohammed T K Ramadas M K Date of Appointment 26.6.13 26.6.13 26.6.13 Expertise in speciﬁc func- Organising farmers Organising farmers Organising farmers tional areas List of other Director- Nil Nil Nil ship held excluding foreign Companies, Compa- nies under section 25 of the Companies Act 1986 and private Companies Chairman/Member of the Nil Nil Nil committees of the Board of other Companies in which he/she is a Director @ No of Shares held in Com- 100 equity shares of 100 equity shares of 100 equity shares of pany Rs. 100/- each Rs. 100/- each Rs. 100/- each Relationship between Di- Nil Nil Nil rectors Interse*

6 Name of Director Ramachandran AM Radhakrishnan S Joseph NL Date of Appointment 26.6.13 29.9.16 29.9.16 Expertise in speciﬁc Organising farmers Organising farmers Organising farmers functional areas List of other Director- Nil Nil Nil ship held excluding foreign Companies, Com- panies under section 25 of the Companies Act 1986 and private Com- panies Chairman/Member of Nil Nil Nil the committees of the Board of other Compa- nies in which he/she is a Director @ No of Shares held in 100 equity shares of Rs. Nil Nil Company 100/- each Relationship between Nil Nil Nil Directors Interse*

Name of Director Sethumadhavan K PC Rajan Rama Sukumaran Date of Appointment 29.9.16 29.9.16 29.9.16 Expertise in speciﬁc Organising farmers Organising farmers Organising farmers functional areas List of other Director- Nil Nil Nil ship held excluding foreign Companies, Com- panies under section 25 of the Companies Act 1986 and private Com- panies Chairman/Member of Nil Nil Nil the committees of the Board of other Compa- nies in which he/she is a Director @ No of Shares held in Nil Nil Nil Company Relationship between Nil Nil Nil Directors Interse*

7 @ Committee positions only of Audit Committee and Shareholders/Investors Grievance Com- mittee in Public Companies have been considered.

* Under the Companies Act, 2013.

On behalf of the Board of Directors Mohammed TK Chairman

Place:Palakkad. Date:1st September, 2016

8 3 Directors Report

To,

The Shareholders

It is with pleasure we present to you our 3rd Annual Report along with Audited statement of accounts for the accounting year ended 31st March, 2016.

3.1 Financial results: This is the 3rd year of operation of the company. During the year under review the company incurred a net operating loss of Rs 18,73,472/- (Previous Year, net proﬁt of Rs 5,06,373) after providing for Rs.5,35,580/- for amortization of research & development exp. (previous year Rs.5,32,330/-), and writing of pre-operative expenses of Rs.1,00,976/- and after providing for depreciation Rs.4,94,758/- (Previous Year Rs 88,556).

After making provisions for providing for deferred tax liability of Rs.3,65,273/- (previous year Rs.77,408/-) and taxation for the year of Rs 6,814/- (Previous Year Rs 1,08,376) the company has carried over the net loss of Rs 21,68,151/-(Previous Year, a proﬁt of Rs 3,20,589/-) for appropriation as follows:-

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

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

During the period under review the company has achieved sales of Rs 178.30 lacs (Previous Year Rs 96.80 lacs).

3.2 Divident: Your directors are not recommending a dividend for the year ended 31st March, 2016 (Previous year at the rate of 1%, Rs 2,09,785)

3.3 Market overview: Being an industry dependent on whether its future is dependent on the growth of coconut produc- tions year after year. The main product Neera is cool drink and is facing a considerable dip in sales during the monsoon. The impending drought is raising more concern about the production of Neera during the coming summer. The drought is also have serious implication for coconut production. The company will be taking up the sale of tender coconuts and its derivatives in the coming months in view of this grim situation in addition to the ongoing sale of cold pressed coconut oil.

9 3.4 Capital: During the year the company has raised its share capital to Rs.329.34 lakhs by issue and allotment of 48,030 equity shares of face value of Rs.100/- each as fully paid-up with a premium of Rs.10/- per share. Out of the above issued capital a sum of Rs.54,76,352/- are calls in arrears as on 31.3.2016.

3.5 Directors: Mr.Ramadas MK, Mr.Ramachandran AM, Mr.Mohammed TK, Mr.Sudevan P, Mr.Radhakrishnan S, Mr.Joseph NL, Mr.Rajan PC, Mr.Sethumadhavan K, & Mrs.Rama Sukumaran, Directors of the Company who retires by rotation and being eligible oﬀers themselves for re-appointment, which is considered to be in the interest of the Company.

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

3.7 Particular of employees: The particular of employees as required under section 217(2A) of the Companies act.1956 is not given, since no person/director of the Company draws remuneration in excess of the limit as prescribed in the above section during the year ending 31.03.2016 (Previous Year Rs NIL)

3.8 Energy Conservation, Technology Absorption and Foreign exchange outgo: The information relating to Energy Conservation, Technology Absorption and Foreign exchange Earnings and Outgo as required to be disclosed under the Companies (Disclosure of particulars in the Report of Board of Directors) Rules,1988 is given in Annexure forming part of the report.

3.9 Auditors: The Auditors of the Company M/s A.K. Bagadia & Co., Chartered Accountants, retire at this Annual General Meeting and eligible for re-appointment. You are requested to reappoint them as auditors and to ﬁx their remuneration.

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

1. We report that in the preparation of annual accounts the applicable accounting statement had been followed along with proper explanation relating to material departures.

10 2. We had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the Profit or Loss of the company for that period.

3. We have taken proper and suﬃcient care for the maintenance of adequate accounting records in accordance with the provision of the Companies act 1956 for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities.

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

3.11 Appreciation: Your Directors wish to place on record the appreciation for the continued support received from the Producer Farmers, Banks - Dhanalxmi Bank, State Bank of Travancore, Canara Bank, Kerala Gramin Bank and Kerala State Financial Corporation, Customers, Suppliers, Shareholders and other business associates for their valuable contribution in the growth of the organization.

The research institutes CFTRI and CPCRI are playing a much larger role in the activities of the company than visible. We place our appreciation for their commitment to the cause of farmers. The greatest and staunchest supporter for all these activities during 2015-16 was the Coconut Development Board headed by the Chairman Sri T K Jose IAS. We sincerely thank them for all their support

Your Directors are also pleased to record their appreciation for the dedication and contribution made by employees at all levels for their compliance and hard work forward to their support in future as well.

3.12 Qualiﬁcation by Auditors: The Statutory Auditors of the company has commented on certain points which are self-explanatory in nature.

On behalf of the Board of Directors Mohammed TK Chairman

Place:Palakkad. Date:1st September, 2016

11 4 Status of Agriculture and Value addition activities

Coconut has an important place in the Indian culture and has been produced here since time immemorial. Currently, India holds the third place in the list of major coconut producing countries of the world. Coconut production in India was. 21,665.19 million nuts in 2013-14. The area under coconut cultivation is around 2.14 million hectares in the country. The states that are important producers of this fruit and their annual average production ﬁgures are as follows: 1. Tamil Nadu (6917.25 million nuts) 2. Kerala (5968.01 million nuts) 3. Karnataka (5041.15 million nuts) 4. Andhra Pradesh (1828.46 million nuts) 5. West Bengal (370.83 million nuts) 6. Orissa (324.93 million nuts) 7.Gujarat (295.03 million nuts) 8. Maharashtra (187.47 million nuts). Kerala, the second largest producer of coconuts in India, accounts for around 27.55 per cent of the countrys total production. Coconut oil is obtained from the copra of the nut with 58 to 62 per cent recovery rate. Regarding the area covered under coconut production, Kerala again stands ﬁrst among the other major coconut producing states. The company is formed for ensuring a better price for the farm produce and to support the farmers in their agriculture operations. Let us have a look at these operations.

4.0.1 Structure of PCPCL Palakkad Coconut Producer Company Limited (PCPCL) is a Farmers Producer Company (FPC), of Palakkad District with a three tier structure. In the primary structure, around 40 to 100 coconut farmers within a speciﬁc geographic borderlines with about 4000 to 10000 coconut trees are brought together to form a Coconut Producer Society (CPS). Twenty or more CPSs in a Gram Panchayat or in a Block Panchayat can form a Federation of Coconut Producer Societies (CPF). These entities are registered under charitable societies act relevant to the area in District Registrar Oﬃce, and then with Coconut Development Board. An umbrella Farmers Producer Company (FPC) is formed by grouping such federations (15 to 30) and constituent CPSs. Now PCPCL has 25 federations with 453 coconut producer societies with around 25,000 farmers and a total of 18,00,000 palms under its umbrella. Out of these, the primary societies, CPSs are the shareholders of the company.

4.0.2 Replanting and Rejuvenation of Coconut Gardens This project was envisaged by Coconut Development Board to improve the productivity of coconut palms through a programme of cutting and removing the old, senile, unproductive and disease advanced palm population, replanting with quality seedlings and rejuvenation of the existing gardens through an integrated package of practices. The prevalence of old and senile palms, poor genetic base of the planting material over populated stands of both coconut and other trees in the homestead, poor attention given to the crop and attacks of pest and diseases are the major reasons for the low productivity. One of the strategies to vitalize the coconut sector is to improve the general agricultural base with large scale rejuvenation of the coconut gardens.

12 The productivity of coconut is just 7486 nuts per hectare in Kerala but it is 14872 nuts per hectare in the neighbouring state of Tamil Nadu. Obviously lot has to be done in this aspect in Palakkad and Kerala. The company spearheaded the project implementation in Palakkad District, and all the Feder- ations affiliated to the company actively participated in the Replanting and Rejuvenation project. During 2013-14, 39,983 number of palms, in 2014-15, 20364 number of palms and in 2015-16, 3128 number of palms were removed under this scheme with the financial assistance of Rs 500 per palm totalling to Rs 3.17 crores. Company monitored this work and provided documentation in addition to actually employing skilled labourers on a contract basis to cut the marked palms since the CDB was providing the funds after they were actually cut. It is extremely regretted that many farmers - mainly from Ozhalapathy, Kozhinjampara and Alathur federations - did not reimburse the expenses incurred by the company for this work after getting reimbursement from CDB so far. The total outstanding on this regard is Rs 23.28 lakhs. Quality planting material is another key to success in the cultivation of any crop especially in the case of perennial crops like coconut where yield can be realized only after a long period. Maithri - a NGO entrusted by Coconut Development Board with a project for producing hybrid and quality planting materials is associated with PCPCL for providing these to CPSs. During 2014-15, about 3500 hybrid seedlings and 12000 dwarf seedlings of good quality were distributed to coconut farmers in Palakkad. Maithri had distributed 9845 hybrids and 18697 dwarf seedlings (Total 28542) to various Coconut Producers Federations under during 2015-16. An amount of Rs 11.41 Lakhs is pending to Maithri from CDB as the subsidy for these seedlings.An amount of Rs 5.20 Lakhs is pending from various CPSs and CPFs. Another component of this programme was the distribution of inputs to the farmers. Fertilisers worth Rs 9.92 crores were distributed for 9.01 lakh palms during 2013-14 benefiting 9909 farmers of 187 CPSs. In 2014-15 fertilizers worth Rs 5.65 crores were distributed for 5.13 lakh palms benefiting 7669 farmers of 108 CPSs. This is in addition to the LoDP in which 1170 farmers of 18 CPSs got benefit for 72,000 palms in 2013-14 and 2014-15. But the allocation for CDB during 2015-16 and 2016-17 to our farmers for this programme is nil so far. Fertilizers worth Rs 22.66 crores are pending distribution for the approved projects. This had resulted in a very serious situation for member farmers who are reeling under consecutive droughts and drastic decline of prices for all major agricultural produce - coconut, rubber and spices. The non release of inputs for the approved projects by the CDB had seriously affected the credibility of the three tier system of coconut farmer organisations of PCPCL . Company took up fertilizer distribution license so as to involve directly in this programme in the coming years if it comes through.

13 4.0.3 Supply of biofertilizers and bio pesticides Supply of necessary nutrients is essential for the growth and productivity of plants. Bio-fertilizers and bio pesticides reduce the use of chemical fertilizers and pesticides which are harmful to the environment and humans. They provide eco-friendly organic agro-input and are more cost-effective than chemical fertilizers and pesticides. PCPCL has a tie with Gujarat based bio fertilizer initiative -Nano Agro Science Co-operative Society Ltd. (NASCOM) and various bio fertilizers and bio pesticides for coconut trees were made available to farmers at a reduced rate. About Rs 2800 is required to use a complete set of bio fertilizers for an acre of coconut plantation in an year. The plans to bring more farmers under this scheme and initiate organic certification process so that their produce will fetch a premium price in the market is yet to take off. The entire plan only received look warm response so far. Lack of interest for CPS and federation leaders and non payment of the members for the supplied fertilizers are the main constraints.

4.0.4 Drip Irrigation Drip irrigation is todays need because water resources are fast diminishing. The drip irrigation system delivers a measured quantity of water at the root zone of each plant at regular intervals. This is to ensure that the plants do not suﬀer from stress or strain of less and over watering. Apart from saving in water this enhances the productivity of the plant also. PCPCL has made a tie up with major drip irrigation system manufacturers. PCPCL bought the materials from them at a bulk rate and started distributing it to the farmers. Willing farmers were able to install the system at 20% less cost than the market rates. Company was able to get the support of State Horticulture mission in implementing the programme but failed to scale it up. The physical achievement is at 112 acres only against the planned 1000 acres. The coming months is going to be most critical for coconut farmers of the district. The unprecedented shortage of (40%) rainfall for the second year is going to be catastrophic for the member farmers. The willingness and the capacity of CPS/Federation oﬃcials is going to be tested on this regard.

4.0.5 Procurement of Coconut During 2015-16 the operations were scaled up. Company was consistently buying coconuts from member farmers at a minimum of Rs 16 per kg (being the NAFED support price) or Rs 2 higher than the market rate, whichever is higher. The price is being oﬀered to the dehusked coconuts delivered at the Muthalamada dryer with an average credit period of 30 days. The Company processes coconuts bought at its facilities in Muthalamada. The processing is done using hot air and devoid of the application of sulphur and smoke. The processed copra is converted to oil through cold pressing and expeller and sold through the coconut points under the brand name of ’Pamfresh’. An innovative marketing using social media is giving rick dividends from the urban centres of Thrissur and Eranakulam. In these areas Company is making home delivery of its premium oil. Member farmers are being requested to give the details of friends and relatives residing in these

14 areas so that Company representatives can approach them. During the last year coconuts worth Rs 24 lakhs were bought and 17.74 tons of coconut oil were sold in the market. The effort to sell the economy oil to member farmers through the CPSs is yet to gain momentum. If this can be achieved PCPCL will be in a position to procure produce from the member farmers at a premium price. Company can procure coconuts at a rate in which the oil is being sold. Discussions with Govt.of Kerala to declare all Coconut FPCs in Kerala as procurement agencies for coconut on par with Grama Panchayat Agriculture Offices are in the final stage. Govt. is insisting on the processing of the husk which remains as the sole remaining hurdle for PCPCL. The Company plan to scale up this operation substantially in this year due to higher demand of pure, cold pressed and unadulterated coconut oil.

4.0.6 Neera production and processing in Mangalore The Project is moving very slowly mainly because of the legal hurdles to sell processed or unprocessed Neera in Karnataka. However decisions are expected in the coming months to change the scenario.

4.0.7 Neera production in Palakkad 1. Neera Plant in Palakkad The vascular sap collected from immature unopened coconut inﬂorescence is popularly known as Neera in fresh form. It is a sugar containing juice and is a delicious health drink and a rich source of sugars, minerals. The high nutritive value of Neera makes it an excellent health drink. Palm honey and Palm sugar, by product extracted from Neera, with low Glycemic index have high export potential. The company is in the process of setting up a Neera processing plant at a cost of Rs 8.9 crores at Idukkipara, Muthalamada where Neera would be processed and bottled. Kerala Financial Corporation had approved a loan of 5.46 crores for a proposal. The plant also includes a separate unit for manufacturing of palm sugar and syrup. This was commissioned at a cost of Rs 2.74 crores by 31st March 2016. The application for subsidies Rs 50 lakhs each from CDB and Govt.of Kerala were submitted simultaneously. The processing of these applications at CDB is at stand still since the exit of Shri TK Jose IAS as Chairman on 19th May 2016. The application to Govt. of Kerala were processed by mid June by the concerned oﬃcials but remains frozen since that. This had put us in to more crises. This is despite a visit by Honourable Minister for Agriculture, Shri Sunil Kumar to the plant on 29th July 2016. The proposed bottling plant is based on the technology developed by CFTRI and has capacity of processing 1,500 litre Neera per hour. The building plan is yet to get approval from Muthalamada Grama Panchayat even though the application was submitted in October 2015. It had crossed several hurdles from District Town planner and Department of Fire and Rescue in addition. PCPCL is hoping that the Panchayat will accord the sanction in the immediate future.

15 The foundation work is completed and the super structure is fabricated and kept at the site. Centrifuge with 1500 LPH capacity worth Rs 33 lakhs is ordered and ready for delivery. Bottling plant worth Rs 98 lakhs is ordered and ready for delivery. Flash pasteurization plant worth Rs 30 Lakhs is negotiated but not ordered due to scarcity of funds. So far Rs 50 lakhs had been spent on building and advance for the above machinery. PCPCL hope to start bottling of Neera from this plant by 31 December 2016 if the suﬃcient equity - at least call in arrears were mobilized and dues from the member farmers on various activities - palm cutting etc. were collected. If the plant starts on time that will be game changer - enabling the Company to scale up production since the product can be sold across India throughout the season and will make it ﬁnancially viable within months of commercial operation. This will also enable to scale up the neera production to at least 50% of the farmers in the coming year.

2. Cold chain and storage Company had mastered the cold chain process of Neera during the last two years. The Cold storage at Muthalamada along with a portable one at Malampuzha and two reefer vehicles keep the system running. The introduction of more innovative palm top boxes at a fraction of earlier cost made the whole process more economic. But the reduction of per palm production during summer and excess production during monsoon - just the opposite of market trends is yet to be managed fully. However all Neera produced during the monsoon can be kept as honey using the newly commissioned vacuum evaporation plant. Absence of cold storages and ice production facilities in the Western federations are the other major challenge which is aﬀecting the economy of Neera production in these areas. Seeking fresh funding and installing the required capital assets will be of prime importance once the bottling plant is commissioned.

4.0.8 Training to Neera Technicians As the Neera is a highly perishable product, tapping of neera requires special care. The touch by hand is avoided and the sap is never exposed to atmosphere and subsequently to the insects and largely to the microbes. Proper training of persons involved in this operation is very essential. A 42 day residential training was given to the selected persons from various federations. 200 persons were trained under this programme in 2014-15. The programme is partly supported by Coconut Development Board. Even though Government of Kerala had declared a special programme to support these trainings, it is yet to be materialized. In 2015-16 another 160 persons were trained under the same programme. One batch consisting of natives of Assam and another 100 consisting of women. Both the programmes failed to achieve the objectives. All newly trained technicians started tapping Neera at the peak of summer, just after the completion of training. They were forced to stop due to low production and resultant low income. Company was not in a position to subsidise the production for the ﬁrst few months which would have altered the whole scenario. Now eﬀorts are being made on this direction.

16 Value of Neera produced during 2015-16 No Federations Value of Neera produced in Rupees 1 Edathanattukara 1189823 2 Thenkara 214607 3 Karakurissy 591949 4 Erimayur 41925 5 Kuzhalmannam 194432 6 Malampuzha 1019600 7 Kozhinjampara 562147 8 Perumatty 2128743 9 Nalleppully 364735 10 Kanjirapuzha 92428 11 Kollengode 280903 12 Muthalamada 1570688 Total Rs 8251984

4.0.9 Coconut Points The company has started the setting up of sales outlets in major urban centres and towns in the districts of Palakkad, Thrissur & Eranakulam Districts. This would enable the company earn sufficient revenue through sales, while maintaining a significant visible presence in the soft drink retail market. The ’Coconut Points are either in the form of permanent shops or semi-permanent fabricated stall situated on leased/rented land. Each outlet is equipped with a 200 litre deep freezer and a refrigerated juice dispenser. The company envisage these outlets as a one-stop-shop for the general public for a variety of high quality coconut-based products like tender Coconut Water, Coconut Milk Powder, Coconut Milk and new product innovations like Neera, and Neera By-products like Palm Honey, Palm Sugar, Palm Jaggery etc. The member farmers can also sell or purchase other chemical free food products like rice, vegetables etc. through these shops. PCPCL has made a tie up with Kerala Grameen bank (Rs 50 lakhs) and Canara Bank (Rs 73 lakhs) for financing this venture. Coconut Development Board has also assured 50% subsidy to 70 coconut points. So far 39 shops were initiated and another 11 are under consideration. These coconut points were supposed to be managed and facilitated by the respective Federations and nearby CPSs. But the result was mixed with a range from very passive to very active. The shops with lukewarm support are incurring losses. The effort to increase sales by providing incentives also did not took off since incentives can be given only after achieving a minimum sales to meet the overheads of the shops. The lack of interest to achieve more by the sales associates had severely affected the whole programme. Timing, dress code, use of sales software, customer handling, use of internet, hygiene etc. also leaves lot of to be desired in this regard. An initiative to introduce credit cards to member farmers were also put on hold due to large number of sticky/pending payments from the member farmers on various activities.

17 PCPCL is launching a major initiative to convert all these shops in to franchise mode by providing the interested persons or CPSs with a percentage of sales as reward after meeting the overheads; taking the average sales of last six months as a bench mark. A parallel attempt is being launched to shift uneconomical shops to better locations/urban areas,a campaign in the nearby oﬃces and residential areas, adding more products etc.

4.0.10 Kalpakashree debit card and term-loan In order to revive the sagging fortunes of coconut farmers in the State, the Coconut Development Board (CDB) and the State Bank of Travancore have entered into an agreement to promote the small and marginal farmers by providing combo cards titled Kalpakashree Debit Card to around 7 lakh growers who are members of Coconut Producers Societies aﬃliated to the CDB. Card-holding farmers are eligible for term-loans for taking up plantation/ re plantation of coconut trees with a period of 13 years. They can avail Rs. 1.26 lakh per hectare for rain fed and Rs. 1.50 lakh for irrigated gardens. The cardholders are also eligible for short-term loans under Kissan Credit Cards scheme for maintenance of yielding coconut farms and for inter cropping Farmers who repay short-term loans up to Rs 3 lakh can avail loans with 4-7 per cent interest.PCPCL is coordinating this activity in Palakkad District and able to provide loans to 314 member farmers. In view of the coming drought and the need to invest on irrigation assets like drip irrigation this scheme has to be enlarged further. The inability to work the details and negotiation skills by farmers is a major handicap. Similarly most of the bankers give least priority this initiative other than hollow lip service.

4.0.11 Link up with research Institutions PCPCL also entered into an agreement with CPCRI, Kasargod to adopt their technology for tapping Neera. In 2014 March the agreement was operationalized and about 50 palms in Thumbe and 500 palms in Palakkad are tapped using this know-how. The Neera tapped using CPCRI technology is of very good quality with better ﬂavour, aroma and taste. This technology is now rolled out to the various federations for thousands of palms. PCPCL had successfully negotiated an agreement with CFTRI for continuous support for research and development of Neera related technology on a proﬁt sharing partnership model. A multi- disciplinary team from CFTRI is now supporting PCPCL for this.

4.1 Research and Development PCPCL realizes that there would be dime and dozen agencies processing and selling same or similar products in the market and hence product, technology & delivery diﬀerentiation would be key. Company has invested signiﬁcant amount of funds to become the market leader through innovation.

18 4.1.1 Product innovation PCPCL is known for its flagship Neera product Pamdew which is in the highest pecking order on a quality and flavour scale. While rest of Producer companies opted for traditional method of tapping, PCPCL looked at other options and zeroed in on CPCRI technology of tapping using ice box methodology. Though it’s a tedious and costly process, the resultant product is of extremely high quality. Company has conducted one year of trials & tests to develop commercial scale Neera tapping methodology and cold chain from palm top to dispensing point. Each component of the cold chain vis. Storage boxes, Transportation vehicles, Cold store, Freezers, Dispenser etc. are finalised after burning enough midnight oil and cash! Dispensing Neera through typical juice dispenser is an invention by PCPCL which others are emulating. Cost of an icebox based on CPCRI methodology is Rs 1000+. With many palms having 2/3 spadix to tap, this would effectively mean, up to Rs 3000+ per palm towards iceboxes.The research and development effort continued during the last year resulting in further reduction of per box cost but also improving the product quality, easiness of handling and less ice consumption. When tapping operations would be scaled up to 10000 palms, these would account for savings of crores of rupees on capital cost. Plus this could create local employment. PCPCL has signed up with CFTRI as technology partner. Though Neera bottling technology is available in the market from various agencies, the taste and flavour are far from satisfactory. It is in this context that CFTRI is entrusted with the responsibility of developing Neera bottling process that would ensure superior quality compared to existing products in the market. With 1 year of efforts and multiple product iterations, CFTRI has come up with a product variant which scores well compared to market options. Neera plant is being built using this technology. Company has released and test marketed several products including Cookies, Syrup, Coconut Oil and Chutney powder.

4.1.2 Technology innovation Company has conducted trials of concentrating Neera using Vacuum evaporation technology and has found that the process yields best quality syrup. An existing plant from Karnataka was purchased on Turnkey basis and the same is erected and commissioned at Muthalamada. Company is in the process of conducting Neera bottling trials using Flash temperature pasteurization. Company has tied up with Kerala Veterinary University for this purpose. PCPCL is revamping product packaging systems to come up with attractive package options. Trials on various packages, material and machines are under way

4.2 Role of Coconut Development Board Coconut Development Board (CDB) is a statutory body established under the Ministry of Agricul- ture, Government of India with its Headquarters at Kochi in Kerala for the integrated development of coconut cultivation and industry in the country with focus on productivity increase and product diversiﬁcation. The formation of Coconut Producer Societies (CPS) were initiated by CDB.

19 Coconut Development Board provides excellent technical, administrative and ﬁnancial support to the CPS CPF - PCPCL during the last ﬁnancial year. Even though CDB is solely instrumental in the creation and establishment of PCPCL, the attitude of the board since the exit of Shri TK Jose IAS as Chairman is left much to be desired. For an instance; monthly review meetings, targets and problem solving were routine until April 2016. It should be noted that not a single meeting was called by CDB since that. They are also silent on fertilizer distribution and subsidies for various initiatives.

On behalf of the Board of Directors Mohammed TK Chairman

Place:Palakkad. Date:1st September, 2016

20 5 Management Discussion and Analysis Report

5.1 Industry scenario Indian food market is one of the largest in the world and the increasing population would not alter this fact, surely for few decades. Market size for food in India is estimated at 23 lakhs Crores by Boston Consulting group and is expected to reach 42 lakhs crore by 2020. PCPCL is a very small player in this market and even if we grab 0.0025% market share, we would cross a turnover of 100 crore in 2020! Increasing awareness on healthy lifestyle has created a sort of Natural product revolution in the market and we could not have looked at a better launching pad. Retail revolution in the Organised segment is helping food product companies to reach wider markets.

Coconut oil and related coconut products had faced tough negative campaigns in the West which had caused depletion of Coconut related products from supermarket shelves. However last few years have witnessed tangible shift in the scenario with many international research agencies coming out in support of Coconut products with a clean chit. Health and nutritious beneﬁts of coconut products are well articulated in many forums. As a result, the Natural coconut product portfolio from PCPCL and other Indian Organisations are being received well, generally in the export markets and particularly in West.

5.2 Opportunities: India is an agriculture economy and even the domestic consumption is a lucrative market for many multinationals, which have been waiting for a right opportunity to enter and seize the market. How- ever, the recent amendments in the Indian Companies Act, provisioning space for Social Enterprises like Farmers Producer Companies (FPC), gives a larger scope for Indian Farmers to unite and grab the opportunity to add value to their produces and enter the ever growing consumer market of India.

PCPCLs ﬂagship product, Pamdew, is well received in market place. We can safely conclude that 8 out of 10 people like the product and come back to buy. There are regular demands and enquiries from various parts of Kerala, India and globe.

Pamhoney, the Neera honey brand from PCPCL, is well received in the market though we have issues of quality and consistency. However with the commissioning of our vacuum evaporation plant, PCPCL would climb up few notches in terms of product quality of Neera by-products. In our knowledge, we might well be one of the ﬁrst to market Neera By-products processed through advanced Vacuum Evaporation methodology which ensures retention of nutrients & vitamins, reduces caramelization and improves consistency. With regular honey being sold in market at price points of Rs 400-500 per kg, we could pitch Pamhoney with a slight premium at Rs 500-600 per kg price range.

21 Pamsugar, The Neera sugar from PCPCL stable, has many takers. The initial research ﬁndings indicate a lower Glycemic Index (GI), oﬀering acceptability of usage among diabetic patients. More research is necessary to conclusively assert the same though. However with cane sugar being available at price points of Rs 30-60 per kg, we can never position Pamsugar as a direct competition with our product cost being Rs 600-800 per kg. Pamsugar can be positioned as a Sugar free health alternate if research conclusively proves low GI credentials.

PamJagri is not yet test marketed. There were many takers for this product in an exhibition conducted at Mangalore. We could explore the opportunity of PamJagri which is supposed to have medicinal beneﬁts.

Value added products from Neera and By-products, including Cookies, Biscuits, Ice creams, Cakes, Pudding, Instant mix etc. is a wide market. We have made initial foray into the same, but the potential is huge.

Pamfresh Coconut Oil, released by PCPCL during last quarter, is slowly gaining a foothold in the market. Assurance of an un-adulterated product from farmers company seems to be hitting a chord with consumers who are fed up with adulterated and spurious products. With capacity expansion, Coconut oil oﬀers a huge market as its a daily usage item in most South Indian homes. Further there are opportunities for value addition in Coconut oil including Massage oil & Perfumed Oil.

Company has initiated the process of kick-starting Micro Enterprises promoted by PCPCL fra- ternity members for producing Coconut value added products. One of the ﬁrst few experiments Pamfresh chutney powder and Vinegar has been a hit in the market. There is huge scope for this product and many other such products including Coconut chips, Coconut powder, Coconut shake, Instant mix etc. Micro enterprises are an eﬀective way of creating local entrepreneurs, especially women and create local employment options.

22 5.3 Threats & Concerns: Threats can be classified as Internal and External. 1. Internal Threats & Concerns: As a start-up in a Social Enterprises sector and being in fledgling product portfolio like Neera, PCPCL and its league of companies are vulnerable to multiple threats from within, as that was there in the history of making of AMUL as well. (a) Mismatch in expectations and realities of farmer members. Being a new venture, Com- pany is realising various market issues only by experiencing it. Performance issues lead to variations of payments to farmers and members who are distanced from daily operations tend to develop grievances. Rumour mills and vested interests also play their spoil sport to fish in troubled waters.Lack of involvement of member farmers in day to day operations specified for them (b) Typical operational issues faced by a new company in a new business vertical, with new product line up and new set of people! Together, this becomes an existential threat with lack of quality manpower. (c) Inability to follow consistency and quality of Neera owing to different methods of tapping, unhygienic tapping methods, skill level of technicians, poor supervision, climatic conditions, different palm species etc. (d) Dearth of quality tappers, attrition after training, issues in tapper management (e) Inability to attract and retain professionals (f) Product quality. Being in food industry, one packet of poor quality product can kill the brand image. Experiences of Maggi and Cadburys are striking examples (g) Lack of entrepreneurship skills and attitudes among member farmers (h) Non payment of due amounts and collected share amount by member CPS officials and farmers is a major concern. This is destroying the very fabric of PCPCL and putting it in severe financial crises. 2. External Threats & Concerns: (a) Poor technological innovation in the country. Identifying commercially viable technology innovation on various fields like bottling of Neera by preserving flavour and taste, Value added product processing, cold chain management, tapping gear development etc. has been a challenge. (b) Understanding the international market and its nuances of product acceptance. Unless professional agencies are engaged, it would be disastrous. A shipment of rejections can actually kill such a start-up. (c) Lukewarm support from the present State Government is a concern. (d) Indifferent and often hostile actions by the so far benefactor CDB is another concern. (e) The impending drought with resultant reduction in coconut production, damage to coconut palms and other agricultural products is going to put our farmers in unprecedented crisis. This is an existential threat for the whole farming community.

23 5.4 Outlook PCPCL looks at various avenues to enlarge the market footprint and ensure improved product quality. Some of the planned activities:

1. Improving the process at vacuum evaporation plant which would ensure consistent and good quality By-products.

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

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

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

5. Develop micro enterprises/units for the processing/production of Hair oil, coir ﬁbre, coir pith, coconut chips, cold press oil expeller unit and tender coconut in this ﬁnancial year.

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

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

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

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

24 5.5 Internal control system and their adequacy The Company has an adequate system of internal controls in place. It has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations and protecting assets from unauthorized use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.

5.6 Discussion on ﬁnancial performance The Company achieved total turnover of Rs. lakhs against Rs.178.30 lakhs in the previous year. The net loss after tax is Rs 21.68 lakhs against net proﬁt of Rs.3.20 lakhs in the previous year.

5.7 Material developments in resources The Company believes that success of any organization depends upon availability of human resources. Our assets are our people who work to innovate beyond and challenge established bound- aries. Thus, employees are vital to the Company. We have a favourable work environment that encourages innovation and meritocracy. We focus on attracting the best and brightest talent and the meritocracy is the sole criteria for selection. The Company ﬁrmly believes that human resources is the most important asset, above all.

5.8 Cautionery statement Statements in the Management Discussion and Analysis describing the Company’s objective, projec- tions, estimates, expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or im- plied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand /supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.

25 6 Corporate Governance Report

6.1 Company’s philosophy on code of governance The Company ﬁrmly believes that business is built on ethical values and principle of transparency coupled with social responsibilities. Good Governance is an essential ingredient of any business, a way of it rather than a mere legal compulsion. The Company philosophy on Corporate Governance envisages the attainment of high levels of transparency, accountability and equity in all facets of its operations and in all the interaction with its stakeholders, including shareholders, employees, lenders and the Government. The Board of Directors of Company continues to lay great emphasis on the broad principles of Corporate Governance.

6.2 Board of directors 1. Composition of the Board: The Board comprises of eleven Directors. Mr S Radhakrishnan, Director, Mr. Vinod Kumar P, CEO, Mr. Vinod Krishnan G, CFO and Mr. Joji. M. Thakadi, Vice President - Operations are looking after the day to day operations of the Company. The remaining Directors as on 31st March, 2016 possess the requisite qualifications and experience in general corporate management, finance, banking, insurance, economics and other allied fields which enable them to contribute effectively to the Company in their capacity as Directors of the Company.

2. Number of Meetings of the Board: During the ﬁnancial year 2015-16, the Board of Directors met 10 times: 11 April 15, 26 May 15, 6 July 15, 28 July 15, 31 Aug 15, 27 September 15, 12 October 15, 13 December 16, 16 January 16 and 13 March 16

3. Composition of Directors, Attendance, Shareholding & Directorship & Membership in other Companies: The information on composition and category of the Board of Directors as on 31st March 2016, attendance of each Director at Board Meeting held during the ﬁnancial Year 2015-16 and the Annual General Meeting (AGM) held on 29th September, 2015, Shareholding in the company & directorships positions in other companies are as follows:

26 No Name Category Shares held Attendance Directorship Board AGM Public Private 1 Mohammed TK Director 100 7 Yes 0 0 2 Radhakrishnan S Director 0 4 Yes 0 0 3 Sethumadhavan K Director 0 4 Yes 0 0 4 Thomas Joseph Director 100 10 Yes 0 0 5 Sasidharan K Director 100 8 Yes 0 0 6 Sudevan P Director 100 10 Yes 0 0 7 Ramachandran AM Director 100 7 Yes 0 0 8 Ramadas MK Director 100 8 Yes 0 0 9 Rajan PC Director 0 3 Yes 0 0 10 Joseph NL Director 0 4 Yes 0 0 11 Rama Sukumaran Director 0 1 Yes 0 0

6.3 Committee of board of directors 6.3.1 Audit committee The term of reference of Audit Committee is according to Section 177 of Companies Act, 2013 which, inter alia, includes to oversee the Company’s financial reporting process, to review Directors Responsibility Statement, changes, if any, in accounting policies and reasons for the same, qualifications in the draft audit report, performance & independence of statutory and internal auditors, reports of the Companys internal auditors and financial statements audited by Statutory auditors and also to review the information relating to Management Discussion and Analysis of financial statements and results of operations, statement of significant related party transactions and internal control systems.

The Audit Committee comprises the following Directors.

1. Radhakrishnan S

2. Rajan PC

3. Sethumadavan K

Sri Radhakrishnan S is the Chairman of the Audit Committee. Vinod Krishnan G (CFO), acts as the Secretary of the Committee. The Manager Accounts also attends the Audit Committee meetings.

6.3.2 Nomination and remuneration committee The term of reference of Nomination and Remuneration Committee is according to Section 178 of Companies Act, 2013 which inter alia, includes to identify persons who are qualiﬁed to become directors and who may be appointed in senior management in accordance with criteria laid down, recommend to the Board of Directors their appointment and removal and shall carry out evaluation

27 of every directors performance and to formulate the criteria for determining qualiﬁcations, positive attributes and independence of a director and recommend to the Board of Directors a policy, relating to the remuneration for the directors, key managerial personnel and other senior employees. The Nomination and Remuneration Committee comprises:

1. Mohammed T K

2. Sasidharan K

3. Ramachandran AM

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

6.3.3 Stakeholders relationship committee To speciﬁcally look into redress of complaints related to transfer of shares, non-receipt of dividends, non-receipt of annual report etc. received from shareholders/investors and improve the eﬃciency in investors service, wherever possible. The Committee comprises of;

1. Thomas Joseph

2. Ramadas MK

3. Sudevan P

Mr.Vinod Kumar P, CEO is the Compliance Oﬃcer of the Committee. The Compliance Oﬃcer can be contacted at: PCPCL, Little Tree, Urkulam, Govindapuram.P.O, Muthalamada Palakkad, Kerala, PIN 678507 Phone : +91 9495098240, E-mail ID: [email protected] There was no complaints received and replied to the satisfaction of the shareholders during the year ended 31st March, 2016 were zero and there were no complaints outstanding as on 31st March 2016. The Company had 12 share transfer requests pending as on 31st March 2016.

6.3.4 Risk management committee: The terms of reference of Risk Management Committee, inter alia, includes, to assess risks in the operations of business units of the Company, to mitigate and minimize of risks assessed in the operations of business, units, periodic monitoring of risks in the operations of business units and other matters delegated to the Committee by Board of Directors of the Company from time to time. The Committee comprises

1. Joseph NL

2. Rama Sukumaran

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

28 6.3.5 Code of conduct The Company has in place a comprehensive Code of Conduct (the Code) applicable to all the Senior Management. The Code gives guidance and support needed for ethical conduct of business and compliance of Law. The Code of Conduct for the Board Members of the Company has been amended in line with the provisions of the Companies Act, 2013, which includes Code for Directors, which is a guide to professional conduct for Directors of the Company pursuant to Section 149(8) and Schedule IV of the Companies Act, 2013.

6.3.6 Familiarisation programme for directors The Directors interact with Senior Management Executives and sought all the information sought by them enabling a good understanding of the Company, its various operations and the industry of which it is a constituent. The role, rights, duties and responsibilities of Independent Directors have been incorporated in the letters of appointment issued to them. The amendment /updates in the statutory provisions are informed from time to time. The information with respect to the nature of industry in which the Company operates and business model of the company, etc. is made known through various presentations on operational performance, strategy, budgets & business forecasts, etc. to the Board of Directors. The above initiatives help the Directors to understand the Company, its business and the regu- latory framework in which the Company operates to eﬀectively fulﬁl their role as Directors of the Company.

6.3.7 Board diversity The Board of Directors (Board) ensures that a transparent Board nomination process is in place. The Company has various business sectors which serve different customer segments. Having members of the Board from different fields is therefore important for sustained commercial success of the Company. While selecting the Board members, the Company shall endeavour to include and make good use of diversity in the skills, qualification, age and professional and industry experience, irrespective of race, caste, creed, religion, disability or gender.

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

The Company does not pay any sitting fees to any director for attending each Board Meeting and Committee meetings. No commission has been paid to any Director during the ﬁnancial year 2015-16.

29 Name Designa- Salary Perks Commis- Total Stock tion & al- sion Options lowances Granted Ramadas MK Director Nil Nil Nil Nil Nil Sasidharan K Director Nil Nil Nil Nil Nil Radhakrishnan S Director Nil Nil Nil Nil Nil Ramachandran AM Director Nil Nil Nil Nil Nil Joseph NL Director Nil Nil Nil Nil Nil Mohammed TK Director Nil Nil Nil Nil Nil Thomas Joseph Director Nil Nil Nil Nil Nil Sethumadhavan K Director Nil Nil Nil Nil Nil Sudevan P Director Nil Nil Nil Nil Nil Rama Sukumaran Director Nil Nil Nil Nil Nil

6.4 Annual general meetings Detail of Annual General Meetings, location and time, where last year Annual General Meetings was held at the MA Sangamam Mhal auditorium, Govindapuram PO on 29.9.16 where no special resolutions were passed

AGM Date & Time Venue Special Resolutions Passed (if any) First 30.6.13, 10 AM Registered Office Nil Second 22.9.14, 10 AM Registered Office Nil EoGM 5.1.15, 10 AM Registered Office Nil EoGM 23.3.15, 10 AM Registered Office Nil AGM 29.9.15, 10 AM MA Sangamam Ma- Nil hal, Govindapuram PO

30 6.5 Disclosures 1. Disclosures on materially significant related party transactions i.e. transactions of the Company of material nature, with its promoters, Directors or the Management, their subsidiaries or relatives etc. that may have potential conflict of interest of the Company at large: During the year 2015-16, the Company had transactions with related parties as defined under the Companies Act, 2013. The basis of the related party transactions has been placed before the Audit Committee. All these transactions with related parties were in the ordinary course of business and on an Arms Length basis and do not attract the provision of Section 188 of the Companies Act, 2013. Suitable disclosures as required by the Accounting Standards (AS-18) had been made in the notes to the Financial Statement. The Board of Directors has approved a Policy on Related Party transactions which has been uploaded on the Companys website www.keralacoconut.com

2. Disclosures of relationships between Directors inter-se: None of the directors are related each other.

3. Vigil Mechanism/ Whistle Blower Policy: The Company has adopted Vigil Mechanism /Whistle Blower Policy (Policy) as approved by the Board of Directors. The Policy encourages whistle blowing against unethical behaviour, actual or suspected fraud or violation of the Companys code of conduct or ethics policy. The Audit Committee and Board of Directors on quarterly basis reviews the Complaints received by the competent authority received under the Policy. The Vigil Mechanism/Whistle Blower Policy have been posted on the website of the company www.keralacoconut.com. During the year under review, no employee was denied access to the Audit Committee.

4. Material Subsidiaries: The Company does not have any material subsidiary.

31 6.6 General shareholders information 1. Company Registration Details: The Company is registered in the State of Kerala, India. The Corporate Identiﬁcation Number (CIN) allotted to the Company by the Ministry of Corporate Aﬀairs (MCA) is CIN NO. U01133KL2013PTC034397.

2. Shareholders/Investors Services The Companys Shares & Secretarial department is situated at its registered oﬃce Little Tree, Urkulam, Govindapuram P.O, Muthalamada, Palakkad, Kerala, PIN 678507 and provides assistance and guidance to shareholders under overall supervision and control of Sri Vinod Kumar P, CEO and Sri Vinod Krishnan G, CFO.

3. Annual General Meeting

No Date & Time 22.9.16, 10 AM 1 Venue Registered Oﬃce,Urkulam, Govindapuram P.O, Muthalamada, Palakkad, Kerala, PIN 678507 2 Financial Year 1st April, 2015 to 31st March, 2016 3 Date of Book Closure 16th September, 2016 to 23rd September, 2016 (Both days inclusive) 4 Compliance Oﬃcer Mr. Vinod Kumar P, CEO Email id: [email protected]

4. Proposed Dividend The Board has proposed no dividend per fully paid Equity Shares for this ﬁnancial year 2015- 16. As on 31st March, 2016, (0%) of the Companys total paid up capital representing nil equity shares were held in dematerialized form and the balance 100% representing 3,29,339 equity shares were held in physical form.

5. Shareholding Pattern The distribution of shareholding as on 31st March, 2016 was as under:

6. Dividend History for Last Year PCPCL have provided a 1% dividend to its shareholders amounts to Rs.2,09,785.

32 6.7 Certiﬁcate of compliance with code of conduct policy To The Shareholders of PCPCL On the basis of the written representations received from Members of the Board and Senior Management Personnel in terms of the relevant provision of Clause 49 of the Listing Agreement, we hereby certify that both the members of the board and the senior management personnel of the Company have aﬃrmed compliance with the respective provisions of the Code of Business Conduct and Ethics of the Company as laid down by the Board of Directors for the year ended 31st March, 2016.

For Palakkad Coconut Producer Company Ltd Mohammed TK Chairman

Place:Palakkad. Date:1st September, 2016

33 6.8 Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Certification To, The Board of Directors, Palakkad Coconut Producer Company Limited Palakkad

Dear Sirs,

Sub: - CEO’s & CFO’s Certiﬁcate

We, Mr.Vinod Kumar P, CEO and Mr Vinod Krishnan G, CFO certify to the Board that: a. We have reviewed the financial statements and cash flow statement for the year ended 31st March, 2016 and to the best of our knowledge and belief : 1. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. 2. These statements together present a true and fair view of the companys affairs and are in compliance with the existing Accounting Standards, applicable laws and regulations. b. To the best of our knowledge and belief, no transactions entered into by the Company during the year ended 31st March, 2016 are fraudulent, illegal or violates the Companys code of conduct. c. We accept responsibility for establishing and maintaining internal control for financial reporting and we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting. Deficiencies in the design or operation of such internal controls, if any, of which we are aware, have been disclosed to the auditors and the Audit Committee and steps have been taken to rectify these deficiencies. d. There has not been any significant change in internal control over financial reporting during the year under reference. e. There has not been any significant change in accounting policies during the year. f. We are not aware of the instances during the year of significant fraud with involvement therein of the management or any employee having a significant role in the Companys internal control system over financial reporting.

For Palakkad Coconut Producer Company Ltd Vinod Kumar P, CEO Vinod Krishnan G, CFO

Place:Palakkad. Date:1st September, 2016

34 7 Auditors certiﬁcate on Corporate Governance

35 36 8 Independent Auditors report

9 Balance sheet & Proﬁt & Loss statement

10 Cash Flow Statement

11 Shareholding pattern

51 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 Sl No 9 8 7 6 5 4 3 2 1 Sangamam Nalikera Ulpadaka Sangham Nalikera Sangamam Ulpadaka Sangham Nalikera Maruthakodu UlpadhakaKoottala Nalikera Sangham Ulpadaka Sangham Nalikera Erimayur Ulpadaka Sangham Nalikera Chullimada Thadiyamparambu Ulpadaka Sangham Nalikera Pilachola Ulpadaka Sangham Nalikera Pookkadancherry Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Nalukandam Ulpadaka Sangham Nalikera Aalumkunnu Ulpadaka Sangham Nalikera Mundakkunnu Ponpara Ulpadaka Sangham Nalikera Ulpadhaka Nalikera Sangham Palakkunnu Ulpadaka Sangham Nalikera Chalava Ulpadaka Sangham Edathanattukara Nalikera - Kairali Ulpadhaka Nalikera SanghamKumaranoor Ulpadaka Sangham Nalikera Moongilmada Parakkalam Eruthenpathy Ulpadaka Sangham Nalikera Bridge River Green Sangam Utpadaka Nalikera Mulladikadu Ulpadhaka West Nalikera Sangham Parakalam Thekkepotta Ulpadaka Sangham Nalikera Mooppuparambu Ulpadhaka Nalikera Sangham Anamari Muthanode Ulpadhaka Nalikera Sangham Pazhambalacode Ulpadakasangam Nalikera Ulpadhaka Nalikera Sangham Puthiyangam Thekkumuri Ulpadaka Sangham Nalikera Kattussery Ulpadaka SanghamThodukad Nalikera VeppilasseryKothapuram Ulpadhaka Nalikear Sangham Athipotta Ulpadaka Sangham Nalikera UlpadhakaManjapra Nalikera Sangham UlpadhakaKannambra Nalikera Samithi Ulpadhaka Nalilkera Sangham Kuruvay Poonchola Ulpadaka Sangam Nalikera Ulpadaka Sangham Nalikera Kuthirappara UlpadhakaPullode Nalikera Sangham Ulpadaka Sangham Nalikera Charupadi Ulpadaka Sangham Nalikera Malakkulam Thottupalam Ulpadaka Sangham Nalikera Cherupulichi Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Anakkamparambu CPS CPS Total No of shares 5170 1188 1521 1575 1694 2023 2424 2954 4275 1023 1079 1121 1368 1485 3150 1279 3740 1065 496 618 633 684 623 763 912 935 275 506 825 340 361 363 602 625 726 768 799 799 849 858 Percentage of share 1.58% 0.15% 0.19% 0.19% 0.21% 0.36% 0.46% 0.48% 0.52% 0.62% 0.74% 0.90% 1.30% 0.19% 0.23% 0.28% 0.29% 0.31% 0.33% 0.34% 0.42% 0.45% 0.96% 0.08% 0.15% 0.25% 0.39% 1.14% 0.10% 0.11% 0.11% 0.18% 0.19% 0.22% 0.23% 0.24% 0.24% 0.26% 0.26% 0.32% 81 80 79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 Sl No Moolamcode Ulpahdka Nalikera Sangham Menon Priyadharsini Tharissu Coconut Society Producers Korenchira Ulpathaka Nalikera Sangam Ulpadaka Sangham,Pandamkode Nalikera Kairali Ulpathaka Nalikera Sangam Akampadam Ulpathaka Nalikera Sangam Kozhukully Thachakode Ulpadaka Sangham Nalikera Ulpathaka Nalikera Sangam Kannamkulam Ulpadaka Sangham Nalikera Vakkala UlpathakaVelampuzha Nalikera Sangam Ulpadhaka Nalikera Valiyatta Society UlpathakaMadathilkund-Mullamoothi Nalikera Sangam Kolani Ulpadaka Sangham Nalikera Ulpathaka Nalikera Sangam Pallikurup Ulpadaka Sangham Nalikera Kairali Karakurussi Ulpadaka Sangam Nalikera Anavarambu Ulpathaka Nalikera SangamVazhemburam Sangam Utpadaka Nalikera Kalpaka Karakurussi Pullissery-Velungode Ulpathaka Nalikera Sangam Ayyappankavu Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Arappara Mangode Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Kuppakurussi Ulpadaka Sangam Nalikera Chirakkalpadi Ulpadhaka Nalikera Sangham Pullikkulam Ulpadaka Sangham, Thrikkallur Nalikera Kairali Samithi Vikasana Palampetta Nalikera Pangode Ulpadaka Sangham Nalikera Ulpadaka SanghamKanhirapuzha Nalikera New Kairali Ulpadaka Sangham Nalikera Varmmamkode Manthoni Ulpadaka Sangham Nalikera Irumbochola Coconut Cluster Ulpadaka Sangham Nalikera Kallamala Karukamani Palathully Nalikera Ulpadaka Sangam Palathully Nalikera Karukamani UlpadhakaPalakode Nalikera Sangham Ulpadaka SanghamKarippali Nalikera UlpadakaEdayankolumbu Sangam Nalikera Ulpathaka Nalikera Sangam Vazhakkode Melakkad Society Utpadaka Nalikera Kannimari Pattikulam Sreelakshmi Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Anugraha CPS CPS Total No of shares 1210 1253 1333 1419 2346 2660 2999 5492 1100 1234 1206 1289 1315 1441 1496 1611 1993 2048 2123 2179 4803 1130 1487 1500 1567 1700 1811 1852 1866 2091 3759 137 166 166 333 458 642 849 917 733 514 Percentage of share 0.37% 0.38% 0.41% 0.43% 0.72% 0.81% 0.91% 1.67% 0.04% 0.05% 0.05% 0.10% 0.14% 0.20% 0.26% 0.28% 0.34% 0.38% 0.22% 0.37% 0.39% 0.40% 0.44% 0.46% 0.49% 0.61% 0.62% 0.65% 0.66% 1.46% 0.16% 0.34% 0.45% 0.46% 0.48% 0.52% 0.55% 0.56% 0.57% 0.64% 1.15% 106 105 104 103 102 101 100 121 120 119 118 117 116 115 114 113 112 111 110 109 108 107

99 98 97 96 95 94 93 92 91 90 89 88 87 86 85 84 83 82 Sl No Puzhakkal Nalikera Ulpadhaka Nalikera Sangham Puzhakkal UlpadhakaEdapparambu Nalikera Sangham Bungalow School Ulpadhaka Nalikera Sangham UlpadhakaVarode Nalikera Sangham Pallanchathanur Ulpadhaka Nalikera Sangham Kinnassery Ulpadaka Sangam Nalikera Ulpadaka Sangham Nalikera Vemballur Ulpadaka Sangham Kottayi Nalikera - Kairali Pannikode Ulpadaka Sangam Nalikera Pulinelly Ulpadhaka Nalikera Sangham Ulpadhaka Nalikera SanghamPothukadu Ulpadaka Sangam Nalikera Kizhakkumpuram Thachangad Ulpadhaka Nalikera Sangham Anikode Ulpadhaka Nalikera Sangham Chithali Ulpadhaka Nalikera Sangham Ulpadhaka Nalikera Sangham Kadakurussi Ulpadhaka Nalikera Sangham Muttimampallam Ulpadhaka Nalikera Sangham Valara Ayyavuchalla Ulpadaka Sangham Nalikera UlpathakaParumanchalla Nalikera Sangam Nariponkadu Vinayaka Coconut Society Producers Manalthode Ulpadaka Sangham Nalikera Tharakanchalla Ulpadaka Sangham Nalikera Koolakoundan Ulpadaka Challa Sangham Nalikera Parummenchalla Ulpadaka Sangham Nalikera Ulpadaka Challa SanghamC P Nalikera ChallaUlpadaka Sangham Nalikera Kalladi Pazhaniyarpalayam Ulpadhaka Nalikera Sangham Ulpadhaka Nalikera SanghamMangodu Chorakode Coconut Panamkutti Society Producers Ulpadaka SanghamGayathri Nalikera UlpadhakaManalipadam Nalikera Sangham Kunjappan Sangam Utpadaka Challa Nalikera Sangam Utpadaka Nalikera Attapallam Kizhakke Sangam Utpadaka Nalikera Attapallam Poolampara Sangam Utpadaka Nalikera Ulpadhaka Nalikera SanghamPathikkal Ulpadhaka Nalikera Sangham Kuthanur Chembai Ulpadhaka Nalikera Sangham Chungamannam Ulpadhaka Nalikera Sangham CPS CPS Total No of shares 1480 1598 1825 1909 1027 1191 1397 2540 2666 2786 4283 1193 101 162 184 216 235 284 301 305 317 456 478 509 536 554 584 825 238 302 363 367 454 476 520 733 471 711 71 0 Percentage of share 0.45% 0.49% 0.56% 0.58% 0.02% 0.03% 0.05% 0.06% 0.07% 0.07% 0.09% 0.09% 0.09% 0.10% 0.14% 0.15% 0.16% 0.16% 0.17% 0.18% 0.25% 0.31% 0.36% 0.43% 0.07% 0.09% 0.11% 0.11% 0.14% 0.15% 0.16% 0.77% 0.81% 0.85% 1.31% 0.22% 0.00% 0.14% 0.22% 0.36% 146 145 144 143 142 141 140 139 138 137 136 135 134 133 132 131 130 129 128 127 126 125 124 123 122 161 160 159 158 157 156 155 154 153 152 151 150 149 148 147 Sl No Attayampathymedu Muthalamada Nalikera Ulpadhaka Nalikera Attayampathymedu Sangham Muthalamada Ulpadaka Sangham Nalikera Samrudhi Ulpadaka Sangham Nalikera Mathirampallam Sneham Ulpadaka Sangham Nalikera Ulpadhaka Nalikera SanghamParakkalchalla Mundipathi Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Pallam PuthoorM Ulpadaka Central Sangham Nalikera Ulpadaka Sangham Nalikera Idukkipara Chemmannamthode Ulpadaka Sangham Nalikera Ulpadaka SanghamPeriyapathikadu Nalikera UlpadakaAlampalayam Sangham Nalikera Moochamkundu Ulpadaka Sangham Nalikera Chappakad Ulpadaka Sangham West Nalikera Ulpadaka Sangham Nalikera Kulapadam Ulpadhaka Nalikera Sangham Vallikkode Mutikulangara Ulpadhaka Nalikera Sangham Akamalavaram Ulpadhaka Nalikera Varani Sangham Ulpadhaka Nalikera SanghamManthakkad Ulpadhaka Nalikera SanghamPudussery Utpadhaka Nalikera Sangam Valladi Akathethara Kalpadhenu Ulpadhaka Nalikera Sangham Ulpadhaka Nalikera Puliyampulli Sangham Sangam Utpadaka Chandrapuram Nalikera UlpadhakaKodumb Nalikera Sangham Puthanchalla Ulpadhaka Nalikera Sangham Ulpadhaka Nalikera Sangham Manakkalkad Sangam Utpadaka Nalikera Pampupara Pookund Ulpadhaka Nalikera Sangham Nilampathi Sangam Utpadaka Nalikera Sangam Utpadaka Nalikera Kulinkad Sangam Utpadaka Nalikera Kanalpirivu Vakkinichalla Ulpadhaka Nalikera Sangham Ulpathaka Nalikera Koundankalam Sangam Ulpadaka Sangam Erissery Nalikera Kampampady Ulpathaka Nalikera Sangham Ulpadaka SanghamAndithara Nalikera Ulpadhaka Nalikera Sangham Kadamkurissi Ulpathaka Nalikera SanghamKarimannankadu Valiyachalla Ulpadaka Sangham Nalikera CPS CPS Total No of shares 1155 1581 1666 1128 1165 1166 1253 1316 1562 2050 2118 2657 4491 5386 5444 6128 6670 6816 1062 1129 1265 1360 850 963 138 818 331 167 229 369 370 394 462 503 551 634 706 817 842 980 Percentage of share 0.26% 0.29% 0.35% 0.48% 0.51% 0.04% 0.25% 0.34% 0.36% 0.36% 0.38% 0.40% 0.48% 0.63% 0.65% 0.81% 1.37% 1.64% 1.66% 1.87% 2.03% 2.08% 0.10% 0.05% 0.07% 0.11% 0.11% 0.12% 0.14% 0.15% 0.17% 0.19% 0.22% 0.25% 0.26% 0.30% 0.32% 0.34% 0.39% 0.41% 186 185 184 183 182 181 180 179 178 177 176 175 174 173 172 171 170 169 168 167 166 165 164 163 162 201 200 199 198 197 196 195 194 193 192 191 190 189 188 187 Sl No Chaithanya Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Kerampara Ulpadaka Sangham Nalikera Gokulam Ulpadaka Sangham Nalikera Kairali Ulpadhaka Nalikera Sangham Kuravattur Ulpadhaka Nalikera SanghamMattaya Ulpadhaka Nalikera SanghamChungaplavu Vallappuzha Railway Station Ulpadhaka Nalikera Sangham Ulpadhaka Nalikera SanghamTharakkalpadi UlpadhakaCherukot Nalikera Sangham Ulpadaka Sangham Nalikera Ayilur - Kalpam Ulpadhaka Nalikera Sangham Kairali Ulpadaka SanghamPookottu Nalikera Ulpadhaka Nalikera Sangham PothundiKalpaka - Chemmanthodu Ulpadhaka Nalikera Sangham UlpadhakaKombankallu Nalikera Sangham Ulpadhaka Nalikera SanghamKairady Ulpadhaka Nalikera SanghamAiswarya Kera Elavanchery Ulpadhaka Nalikera Sangham Olippara UlpadhakaKarimpara Nalikera Sangham Chittady Ulpadaka Sangham Nalikera Ulpadhaka Nalikera Sangham Mankkurussi Pallasssana Sangam, Utpadaka Nalikera Kalpaka Ulpathaka Nalikera SangamNavakonam Ulpadhaka Nalikera Sangham Manamkutti Ulpadaka Sangam Nalikera Kottamangalam Ulpadhaka Nalikera SanghamKuttipallam Ulpadhaka Nalikera SanghamChuvattilekalam Kenampully Ulpadaka Sangham Nalikera Ulpadaka SanghamKerasree Nalikera Cheriyakanakkanpara Ulpadhaka Nalikera Sangham Kambilichungam Ulpadaka Sangam Nalikera Cheraya Uthpadaka Sangam Nalikera Sangham Utpadaka Nalikera Kalpakam Poothannur Ulpadhaka Nalikera Sangham Ulpadaka Sangham Nalikera Manikkassery Ulpadaka SanghamSantha Nalikera Linga Nagar Ulpadaka SanghamKiriyampallam Nalikera Chinna Ulpadaka Sangham Koundannur Nalikera Ulpadaka Sangham Nalikera Anupur CPS CPS Total No of shares 1513 1226 1272 1653 2442 345 404 467 893 366 366 366 366 371 412 981 100 155 235 393 229 390 425 568 752 779 794 929 960 229 348 431 520 539 552 596 596 642 71 0 Percentage of share 0.11% 0.12% 0.14% 0.27% 0.11% 0.11% 0.11% 0.11% 0.11% 0.13% 0.30% 0.46% 0.00% 0.02% 0.03% 0.05% 0.07% 0.12% 0.07% 0.12% 0.13% 0.17% 0.23% 0.24% 0.24% 0.28% 0.29% 0.37% 0.39% 0.50% 0.74% 0.07% 0.11% 0.13% 0.16% 0.16% 0.17% 0.18% 0.18% 0.20% 226 225 224 223 222 221 220 219 218 217 216 215 214 213 212 211 210 209 208 207 206 205 204 203 202 241 240 239 238 237 236 235 234 233 232 231 230 229 228 227 Sl No Pookkottukavu Nalikera Ulpadaka Sangham Nalikera Pookkottukavu Charalipathy Ulpadaka Sangham Nalikera UlpadakaNellimedu Sangham Nalikera Ulpathaka Kaliyamman Nalikera Sangham Srambi-Kaattu Kunjumenonpathy Ulpadaka Sangham Nalikera Mullanthode Ulpathaka Nalikera Sangam Ulpathaka Nalikera Sangham Kaikatty Ulpathaka Nalikera SanghamSrambi-Namasivaya Ulpathaka Nalikera Sangham Nallurkkadu Ulpadhaka Nalikera Puthussery Sangham UthpadakaAmbattupalayam Naliker Sangham Ulpadhaka Challa Nalikera SanghamValayakkaran Ezhuthani Ulpadaka Sangham Nalikera Ulpadhaka Nalikera SanghamMaruthanpara Enthalpalam Ulpadaka Sangham Nalikera Kalyanapetta Ulpadhaka Nalikera Sangham Plachimada Ulpadhaka Nalikera Sangham Meenakshipuram Ulpadaka Sangham Nalikera Ulpadaka SanghamDheeran Nalikera Chinnamalai Karupputhuraikadu - Ulpadaka Sangam Nalikera Valmutty Srambi Vanchinathan Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Narani Vilayodi Ulpadaka Sangham Nalikera Society Utpadaka Vembra Nalikera Ulpadhaka Nalikera SanghamPeradiyur Ulpadhaka Nalikera SanghamVilayur Sangam Utpadaka Nalikera Ezhakkad Ulpadhaka Nalikera Sangham Kalpavriksha Mankurussi Poothannur Ulpadaka Sangham West Nalikera Sangam Utpadaka Nalikera Chalirkkad Pratheeksha Sangam Utpadaka Nalikera Samithi Vikasana Nalikera Parali Elambulassery Nalikera UlpadakaElambulassery Sangham Nalikera Kolliyani Ulpadaka Sangham Nalikera Ulpadaka SanghamChundekkad Nalikera Ulpadaka Sangham Nalikera Gramasree UlpathakaMythri Nalikera Sangham UlpadakaHaritha Sangham Nalikera Munnorkode Ulpadaka Sangham Nalikera Ulpadaka Sangham Nalikera Pulapetta CPS CPS Total No of shares 1075 1133 1453 1639 2816 1111 1219 1238 1467 1616 1732 1782 2015 2170 2537 3030 3130 3764 7966 688 720 740 917 111 142 156 241 297 325 443 518 825 187 165 210 252 257 338 74 90 Percentage of share 0.21% 0.22% 0.23% 0.28% 0.33% 0.35% 0.44% 0.50% 0.86% 0.03% 0.04% 0.05% 0.07% 0.09% 0.10% 0.14% 0.16% 0.25% 0.34% 0.37% 0.38% 0.45% 0.49% 0.53% 0.54% 0.61% 0.66% 0.77% 0.92% 0.95% 1.15% 2.43% 0.02% 0.06% 0.03% 0.05% 0.06% 0.08% 0.08% 0.10% 262 261 260 259 258 257 256 255 254 253 252 251 250 249 248 247 246 245 244 243 242 273 272 271 270 269 268 267 266 265 264 263 Sl No Pulimkunnu Thathangalam Ulpadaka Sangam Nalikera Pulimkunnu Ulpadhaka Nalikera SanghamKeram Thodukad Anamooly Ulpadaka Sangam Nalikera Kolppadam Ulpadhaka Nalikera Sangham Pichalamunda Ulpadhaka Nalikera Society Koottambadam nalikera Ulpadaka Sangham Ulpadhaka Nalikera SanghamMundambalam Chenthund Ulpadaka Society Nalikera Payippullu Ulpadhaka Nalikera Sangham Ulpadaka Society Nalikera Mahathma Palakkayam Achilatti Ulpadhaka Nalikera Sangham Ulpadaka Sangham Nalikera Irumbarutty Cheenikkappara Ulpadaka Sangham Nalikera Society Utpadaka Nalikera Palakkayam Ulpadhaka Nalikera Sangham Kallumpuram Ulpadaka Sangam Kerasree Nalikera Karimbanchola Ulpadhaka Nalikera Sangham Thiruvazhiyode Sangham Utpadaka Nalikera Ulpadhaka Nalikera Sangham Kuravattur Ulpadaka Sangham Nalikera Vayilamkunnu Chazhiyode Ulpadaka Sangham Nalikera SocietyMannampatta Utpadaka Nalikera UlpadhakaPariyanampatta Nalikera Sangham Ulpadaka SanghamNanma Nalikera Punchappadam Ulpadhaka Nalikera Sangham Cheerakuzhy Ulpadaka Sangham Nalikera Utpathaka SangamThirunarayanapuram Nalikera Ulpadaka Sangham Nalikera Kulakattukurussi Punchakode Ulpadaka Sangham Nalikera Ulpadaka Sangam Nalikera Muthuvally Kainikode Ulpadaka Sangam Nalilkera Chembankurussi CoconutCherumkulam Production Sangam CPS CPS Total No of shares 1095 1251 1496 1552 1576 2186 2795 1262 1279 1376 1977 2549 2928 165 285 366 451 904 195 261 320 348 436 455 488 504 602 650 677 27 63 93 Percentage of share 0.05% 0.33% 0.38% 0.46% 0.47% 0.48% 0.67% 0.85% 0.09% 0.11% 0.14% 0.28% 0.38% 0.39% 0.42% 0.60% 0.78% 0.89% 0.01% 0.02% 0.03% 0.06% 0.08% 0.10% 0.11% 0.13% 0.14% 0.15% 0.15% 0.18% 0.20% 0.21% 12 Annexure to Directors Report

59 Annexure to the director’s report

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

A. Power and fuel consumption: Current year Previous year

1. Electricity

(a) Purchased

Units(KWH) 35180.81 32890.67

Total Amount (Rs in Lacs) 2.17 1.97

Rate/Unit Rs. 6.15 5.98

(b) Own Generation

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

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

ii)Through steam turbine/generator Units Nil Nil

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

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

Quantity (tones)

Total Cost (Rs.in Lacs)

Average Rate Per MT

3. FURNACE OIL/LDO Nil Nil

Quantity (K. ltrs)

Total Amount (Rs.in Lacs)

Average Rate Per MT

Other internal generation

Quantity

Total cost

Rent/unit

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

(No specific standard as the consumption per unit depends on product mix)

Copra Production (All grades) in kg. 29563.68 19611.00

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

1 2. Technology absorption and foreign exchange earnings outgo

C. Foreign exchange earning & outgo:

Foreign Exchange earnings (FOB) during the

(I) Rs.in Lacs Rs. In Lacs

year

FOB Value of Exports Nil Nil

(ii) Foreign Exchange Outflow during the year

Raw materials/Spares Nil Nil

Capital Equipment Nil Nil

Expenditure Nil Nil

TOTAL