annual report 2020 - 21 - shreeja – mahila milk producer

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SHREEJA MAHILA MILK PRODUCER COMPANY LIMITED(CIN: U01403AP2014PTC094771)

SEVENTH ANNUAL REPORT 2020-21BOARD OF DIRECTORSSmt. Vijaya Kolla Chairman Smt. Sailaja Kuppala DirectorSmt. Prameela Kadigaranepalli Director Smt. Usha Avula DirectorSmt. Nirupa Kovi DirectorSmt. Saraswathi Kasireddy DirectorSmt. Vijayalakshmi Pulikinti Director Smt. Thayaramma Madhasi Director Smt. Saraswathi Sunkara DirectorSmt. Vanasri Naagabusanam DirectorSmt. Sreedevi Kuntapalli Additional DirectorDr. Annapurna Neti Expert DirectorDr. Nagaraj Venkatakrishnayya Belavadi Expert Director Dr. C P Devanand Expert Director Shri Jayatheertha Chary Director & Chief Executive

HEAD – FINANCE & ACCOUNTS Shri Rajesh Napa

AUDITORSM/s S.B. Billimoria& Co., Chartered Accountants

COMPANY SECRETARY Shri Amarendra Babu Nagasuri

REGISTERED OFFICE 3rd & 4th Floors, Bachala TowersPlot No. 29 & 30 S.G.S. Arts College RoadNew Indira NagarTirupati, Andhra Pradesh Pin – 517501Tel: 0877 2242173

BANKERS Bank of BarodaICICI Bank Sapthagiri Grameena BankState Bank of India

CONTENTS

Particulars Page No.Directors’ Report 02Independent Auditor’s Report 11Balance Sheet 18Statement of Profit & Loss Account 20Cash Flow Statement 21Notes to Financial Statements 23Minutes of Previous Annual General Meeting 38Budget for Financial Year 2021-22 43Notice of Eighth Annual General Meeting 44E-mail ID / Address Registration Form 50Attendance Slip 51Proxy Form 51

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SHREEJA MAHILA MILK PRODUCER COMPANY LIMITED

DIRECTORS’ REPORT TO THE SHAREHOLDERS

The Directors are pleased to present before you their Seventh Annual Report on the operations of the Company along with the Audited Accounts for the year ended 31st March 2021.The Company was incorporated on 03rd July 2014 as a Producer Company under the provisions of the Companies Act in the State of Andhra Pradesh to undertake the business of pooling, purchasing, processing of milk of the Members, and marketing of the same and to deal in activities that are part of or incidental to any activity related thereto.1. Financial Results

The summarized Financial Results are as under: (Rs. in Lakh)

Particulars For the year ended 31st March 2021

For the year ended 31st March 2020

Total Revenue 51,374.79 53,789.63Total Expenses 51,253.25 53,295.04Profit/(Loss) for the period before tax 121.54 494.60Tax expenses 52.88 117.32Profit/(Loss) for the period after tax 68.66 377.27

During the year under review, the Company has achieved a turnover of Rs. 51,214.41 Lakh as against Rs. 53,555.60 Lakh in the previous year. The total revenue generated plunged by 4.5% on account of extreme conditions caused due to COVID-19 pandemic.During the year under review, the total revenue generated was Rs. 51,374.79 Lakh, which includes other incomes earned of Rs. 160.38 Lakh. The total expenses incurred were Rs. 51,253.25 Lakh against Rs. 53,295.03 Lakh of previous year. Total expenses of Rs. 51,253.25 Lakh including material expenses of Rs. 45,547.84 Lakh and financial expenses of Rs. 534.80 Lakh and depreciation and amortization expense of Rs. 334.84 Lakh. This has resulted a profit before tax (PBT) of Rs. 121.54 Lakh and net profit after tax (PAT) of Rs. 68.66 Lakh.

2. Limited Return (Dividend)The Board of Directors are pleased to recommend limited return (dividend) at the rate of Rs. 5/- (Rupees Five only) per equity share absorbing Rs. 1,14,50,895 /-. The limited return (dividend) will be paid to those members, whose names appear in the Register of Members of the Company as on 31st March 2021.

3. Transfer to General Reserve Pursuant to provisions of the Companies Act and Articles of Association of the Company no amount was transferered to reserves.

4. Change in nature of BusinessThere is no change in the nature of the business of the Company during the year under review.

5. Material Changes and CommitmentsThere have been no material changes and commitments, which affect the financial position of the Company which have occurred between the end of the financial year to which the financial statements relate and the date of this Report.

6. Business and OperationsThe Company is in the business of pooling, purchasing, processing of milk and milk products and marketing the same. Activities carried out by the Company during the year were briefed as below: i. Procurement of MilkShreeja is currently operating in Chittoor, Ananthapur, Nellore & parts of Cuddapah district with a total of 125 BMCUs and capacity of about 4.5 Lakh Kgs Per day. Entire operations are spread around 1,300 Villages with 3,391 Milk Pooling Points. An overwhelming support from the producers enabled the company add quickly new milk pooling points & new producer member’s in existing as well in new

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geographies to its procurement network.During the current year we were able to expand our operations to other states like Tamil Nadu and Karnataka one BMC in each of the state and another 10 BMCUs in Andhra Pradesh of the existing districts. In the current FY we procured 13.70 crore Kgs of raw milk with an average of 3.76 lakh Kgs Per day and 11,531 members were added to the system.In spite of Covid Pandemic we were able to support our members with competitive price and enabled uninterrupted milk procurement activity across our operational area. We de-grown in our volumes by about 7.5% compared to previous year mainly due to: l Members who effected with corona were not able to take proper care of animalsl Movement restriction in the lock down period, members could not arrange required feed and supplements on timel Excess rains l Lumpy skin / mastitis diseasel Restriction on new MPP and member enrolment during pandemicIn spite of the Covid adverse situation the Company declared an amount of Rs 5.18 Crore as price difference or additional price or loyalty incentive to the eligible members which benefitted around 39,597 members.ii. Producer Institution Building (PIB) Producer Institution Building aims to build a platform for its members through the member centric approach and good governance. The efforts are being made to increase in active membership which would be leading to proliferation in business aspects.PIB activities differentiate the producer company from the other private players and co-operatives in the dairy sector, with its transparent governance system and Members’ equity, which is proportionate to their pouring patronage. The ownership of the organization lies with the members, who are ultimately the policy makers. Shreeja strengthens women empowerment through their inclusion in the system. Further, efforts have been put in by Shreeja for 100% milk payment directly in the bank accounts of the membersThough pandemic curtailed capacity building activities following achievements were done for the FY 2020-21a. Ensuring COVID-19 Appropriate Behavior: COVID appropriate behavior strategies were designed

in vernacular language and sent to Individual members through various digital platforms so that member’s safety was taken care.

b. Member Enrollment and Information Sharing with Members: The process of enrolling members starts with the collection of documents and the allotment of unique member code for each member, which enables to access to all the services provided by the company. Though lockdown protocols were at place, PIB team were able to generate 14,111 member codes for the FY 2020-21.

c. Monthly Member Information System: Shreeja shares all member related information either through hard copy or soft copy and the information is conveyed by the field supervisor at MPP premises. This has immensely benefited members as they get timely information pertaining milk poured, deductions, if any and net payment which helps in enhancing the transparency in operations.

d. Leadership Development Program (LDP): Potential members identified during the capacity building programs have attended the LDP to improve their interpersonal and leadership skills. This program emphasized on empowering women and also provide them with an opportunity to nominate their names for the Board of Directors positions. During FY 2020-21, we have trained 77 members from four clusters.

e. Women Empowerment: Shreeja continues its emphasis on enhancing the participation of women members through following initiatives –In the year 2020-21, the Company conducted the Women Awareness Programs by following COVID-19 rules and where 7,964 members participated to understand about their company. Shreeja communicates the role of women in every meeting and forum to emphasize on the importance of women in dairy sector.

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f. Strengthening Members Relation: Two informal groups namely- Village Contact Group (VCG) and Member Relation Group (MRG) were formed from among the members of the company who are consistent in supplying milk to Milk Producer Company (MPC) and have given consent to be a part of these groups voluntarily. These groups facilitate in an effective two-way communication channel between members and MPC. The aim of these informal groups is to build relations, resolve grievances, sensitize members on operation of the organization and create a sense of responsibility and belongingness among them. In the FY 2020-21 PIB team were able to identify 2,458 VCG members and 2,222 MRG members.

iii. Ration Balancing Programme (RBP)Ration Balancing Programme (RBP) aims to improve production and reproduction of animals through adoption of scientific method of feeding with provision of technical inputs and services to milk producers at their door step, thereby improving milk production efficiency and economic return from dairying.The productivity data of different categories of animals and the prevailing feeding practice in area suggest that the productivity of animal is not at par with their genetic potential, which is mainly due to imbalanced feeding. Ration balancing advisory services in the project area will help in improving the productivity and productive efficiency of dairy animals by appropriating the available feed resources and use of area specific mineral mixture which will also help in bringing down the cost of milk production.As a result of RBP services, pourers got awareness on Cattle Feed and Mineral Mixture usage resulting in improving productivity and quality of the delivered product.During this year due to Covid, some of the field activities like health camps & Mastitis control projects are affected in the initial period, however our doctors are able to address all animal related issues individually either virtually or by visiting physically as per need.In spite of Covid pandemic we are able to support our pourers with uninterrupted supply in Cattle Feed and other veterinary products in time and continued the services of AI and Cattle Insurance as per their requirement.Our Veterinary Doctors supported the members in controlling Lumpy Skin disease by way of Ethno Veterinary Management practices which is the major issue during pandemic affected milk yields across all our operational area.Team also contributed in the following:• 10,830 AI doses administered to milch animals belonging to 7,136 members• 430 Cattles were insured • Other Input Services including supply 14,264 MT of Cattle Feed, 33 MT of Area Specific Mineral Mixture & other essential veterinary medicines were provided during the year• 361 Animal Health Camps organized in the operational area • 23,000 cows were treated for Sub Clinical Mastitis• Trained 6,000 farmers on EVM practices to control different diseases and created awareness on restriction on usage of antibiotics.iv. Sales & MarketingShreeja launched the following products in 2020-21: • Under the brand name “Shreeja Lassica” Sweet and Mango Lassi in 200 ml Pet Bottle & 160 ml pouches• Under the brand name “Shreeja Paneera” Paneer 200g Pouches • Under the brand name “Shreeja Doi Joy” Mishti Doi 85g cupsThe Company had achieved the sales of 37,129 LPD of Milk, Curd and Buttermilk in 2020-21 against the sale of 29,857 LPD in 2019-20 i.e. 28% grown in volume despite continuous pandemic and frequent lock downs. The Company launched milk and milk products in Hyderabad market.We had run various activities to promote our products targeting different segments of the consumers. We ran advertisement programmes in Red FM Radio and “Jackpot Programme” in Act Music Channel which became very popular among the masses.We had developed different Point of Sales Materials (POSM) like Product backlit boards, Streamers etc. apart from the existing POSM to create consumer awareness and generate consumer pull for

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Shreeja Brand. We had run various consumer offers on milk, curd, buttermilk, Paneer, Lassi etc. and did “inshop” and “Home to Home” campaigns to generate consumer pull to our brand.v. Quality Assurance (QA)Quality Assurance played an important role in establishing quality systems and testing schemes across all BMC / MCC’s.We could achieve the average of 92 minutes MBRT in 2020-21 at receiving plant. We have implemented 5S across all our own BMCUs. FosTac (FSSAI approved) virtual trainings were conducted in which ten people got certified. Further, in house trainings / Field trainings were conducted to all the concerned cross functional team members at BMCs to update and acquaint their knowledge and skills regarding the Clean Milk Production, Good Manufacturing Practices and Good Hygienic practices.We have successfully implemented Cold Sanitizer chemicals (Johnson Diversey) at selected BMCUs to improve MBRT and wholesomeness of milk.Round the time, quality monitoring to ensure adulteration free and Antibiotic free milk using Rapid Testing kits of Adulterants (Del strips) Antibiotic kits apart from Milko Screen machines (Indi Foss) at three MCC’s has been implemented.We have conducted 3 P plant audit at Mukunda Dairy, Hyderabad as per Company guidelines and successfully launched our Milk and Milk products.vi. Information Technology (IT)IT infrastructure is in place for our company to cater wider business goals. In FY 2020-21, Covid pandemic prompted many organizations to abruptly adopt remote work. IT team initiated implementing Business Continuity Plan (BCP), which were created to ensure that organization would be able to operate mission critical activities during the emergencies.IT Team and functional teams have already implemented applications for carrying out business transactions and BCP. SAP was already implemented to carry out and store our business transactions. As the data is stored centrally and can be accessed from anywhere makes it easy for working from home. IMMS a user-friendly integrated solution to automate the milk collection process carried out at Milk collection centers and BMCs, the data from IMMS would interface with SAP and processing of data is done for payments to milk farmers.The Company maintains servers, firewalls and VPN at HO for connecting the office and working from home, data management, managing shared resources and maintaining storage devices is taken care remotely. Shreeja identified critical processes and provided solutions by• Moving desktops to employee’s home• Providing UPS to overcome power cuts• Support of systems by taking remote desktops• Communication of multiple users through video callsTo meet the statutory requirements, Shreeja implemented E-invoice, E-way bill, Stock transfer order (STO) in our enterprise solution. The Finance Act 2020 introduced TCS on the sale of goods under the Income Tax Act, the Company have configured these amendments to enable compliance norms in SAP. Alternative payment gateway for our consumer sales application is being implemented to avoid the downtime of the application.We have successfully completed the required configuration in SAP to start our sales operation at Hyderabad. Our Manufacturing, Quality & Sales billing teams are now able to transact from the Hyderabad plant.

7. Share Capital / Membership / Voting RightsAs at 31st March 2021, the paid up share capital was Rs. 22.90 Crore, whereas 94,549 members were appearing on the register of members of the Company. After 31st March 2021, Company has enrolled 8,328 new members, 962 members cancelled their membership and the total number of members as on the date of this report stands at 1,01,915 members.To avoid cancellation of membership, all the members are hereby requested to fulfil all the patronage

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criteria of their respective class and conditions for continuation of membership during the relevant financial year. Voting Rights and attendance at 8th AGMAs on 31st March 2021 total members as per register was 94,549, out of that 962 members cancelled their membership post 31st March 2021. Hence, they are neither eligible to attend nor vote at 8th AGM. 44,849 members have voting rights on all the resolutions as set in Annual General Meeting notice and 6,835 members, who have fulfilled basic condition for voting (i.e., pouring of milk for at least 200 days totaling to at least 500 liters in a previous financial year) but have not fulfilled one or more of the patronage criteria of their respective class during F.Y. 2020-21, consequently they are not entitled to vote on the class based election of Directors. Remaining 41,903 members did not pour milk for at least 200 days totaling to at least 500 liters during the previous financial year 2020-21 and hence not entitled for voting rights in 8th AGM.New members, who were admitted as members of the Company post 31st March 2021, will not be entitled to dividend for FY 2020-21 as well as voting right at 8th AGM, however they can attend the AGM.

8. Investor Education and Protection Fund (IEPF)During the year under review no amount of unpaid/unclaimed dividend was required to be transferred to Investor Education Protection Fund (IEPF) pursuant to the requirement of section 124(5) of the Companies Act, 2013.

9. Board of DirectorsSmt. Lavanya Kumari Bojja (DIN: 06881632) and Sailaja Kampalle (DIN: 06882858) retired as the Directors of the Company at 7th AGM held on 28th December 2020. The Board would like to thank them for their association and support as directors with the Company.Pursuant to the Article 9.6 and other relevant articles of the Articles of Association of the Company and applicable provisions, of the Companies Act, 1956/2013, Smt. N Vanasri (DIN: 08902829), Smt. S Saraswathi (DIN: 08903045), Smt. M Thayaramma (DIN: 08905157) and Smt. P Vijaya Lakshmi (DIN: 08902806) were appointed as Directors at 7th AGM held on 28th December 2020. Smt. Kavitha Yerragudi has resigned as a Director due to personal reasons with effect from 29th January 2021 and Smt. Sreedevi Kuntapalli (06881611) was appointed as Additional Director with effect from 26th March 2021.Dr. N V Belavadi (DIN: 01734080) and Dr. Annapurna Neti (DIN: 06998090) were re-appointed as Expert Directors of the Company for a period of two years effective from 14th October 2020. Composition of Board of Directors & re-appointment of DirectorsArticle 9.4 of the Articles of Association of the Company deals with determination of criteria for categorising members into different classes based on their patronage and representation of such classes of members on the Board, to the extent possible, based on the patronage of members of respective class. The revised criteria for categorizing members into three different classes viz., Class-A, Class-B and Class-C based on patronage were approved at the 7th AGM of the Company.Based on the analysis of data w.r.t., fulfilment and non-fulfilment of patronage criteria by the members during FY 2020-21, it has been found that, 47.6% of the total members as on 31st March 2021 have fulfilled all the prescribed criteria of patronage of their respective class. Accordingly, out of this 47.6% of the total members, 4.4% comprised of Class – A, 11.2% Comprised Class – B and 31.9% comprised Class – C. Whereas, the proportionate percentages (%) of quantity of milk (patronage) supplied by the said Class – A, Class – B and Class – C of members amongst themselves were respectively 32.7%, 34.3% and 33.0% respectively during FY 2020-21. Accordingly, the composition of the Board providing for representation of each class of members on the Board based on patronage of each class of members comes to 3 directors for Class – A, 4 directors for Class – B and 4 directors for Class – C respectively. The Board will meet the requirement of Article 9.5, as following: - Smt. Prameela Kadiagaranepalli (DIN: 07908794) representing Class – C and Smt. Sailaja Kuppala (DIN: 07908932) representing Class – C, the Directors of the Company will retire at the ensuing AGM of the Company, as per Article 9.5 & 9.6 of Articles of Association of the Company they do not offer themselves

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for re-appointment. Smt. Usha Avula (DIN: 08211280) representing Class – A, will retire by rotation at the ensuing AGM of the Company and is eligible for re-appointment. In addition to above Smt. Kavitha Yerragudi has resigned as the director of the company during the year. In their place, the Nominating Committee has, at its meeting held on 26th August 2021, recommended the appointment of Smt. Kannemma Pakala (DIN: 09303629), Smt. Pushpavathi Kaligari (DIN: 09303735) and Smt. Sreedevi Kuntapalli (DIN: 06881611) representing Class – C and Smt. Usha Avula (DIN: 08211280) representing Class – A as directors of the Company at the ensuing AGM, who is eligible for such appointment / re-appointment in accordance with the provisions of the Articles of Association of the Company.This will make the total strength of directors in Class-A to 3, Class-B to 4 and Class-C to 4 directors as permissible under Articles 9.5.i and 9.6.i.Accordingly, the Board recommends their appointment. The statement containing name and qualifications of each of the four Directors seeking appointment is annexed to the Notice convening 8th AGM of the Company.Dr. C.P Devanand (DIN: 07773929) was re-appointed as Expert Director of the Company for a period of two years effective from 27th June 2021.

10. Board & Committee Meetingsi. Board Meetings: Five Board Meetings were held during the year under review and the gap between two meetings did not exceed one hundred and twenty days. The said meetings were held on:

Board Meeting No. Board Meeting Date Board Strength No. of Directors attended34 23rd June 2020 13 1135 30th September 2020 13 1236 27th November 2020 13 1237 29th January 2021 14 1438 26th March 2021 14 13

The necessary quorum was present for all the meetings.ii. Stakeholders Relationship Committee:Pursuant to requirement of section 178(5) of the Companies Act, 2013, Stakeholders Relationship Committee was constituted by the Board to resolve the grievance of stakeholders of the Company. The Committee consists of:Smt. Vijaya Kolla, Chairman; Smt. Vanasri Naagabusanam, Member and Shri Jayatheertha Chary, Member;The Committee was constituted on 26th March, 2021. Hence, no meeting was held during the year.iii. Member Related Committee Meetings:During the year 2020-21, the Member Related Committee met Six times for the approval of applications related to transmission of shares, correction of Member’s name in the register and issue of duplicate share certificates etc. The Meeting were held as below:

Committee Meeting No.

Committee meeting Date

19 30th July 202020 14th September 202021 12th December 2020

11. Directors Responsibility Statement In accordance with section 134 (5) the Board of Directors of the Company inform the members that:(a) in the preparation of the annual accounts, the applicable accounting standards have been followed and there is no material departures;

Committee Meeting No.

Committee meeting Date

22 09th January 202123 04th February 202124 04th March 2021

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(b) the directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31st March 2021 and of the profit and loss of the company for the period ended 31st March 2021;(c) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;(d) the directors has prepared the annual accounts on a going concern basis; and(e) the directors has devised proper systems to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

12. Internal Financial ControlThe Company has in place the proper and adequate internal financial control system, which ensures that all assets are safeguarded and protected and the transactions are authorized, recorded and reported correctly. As per Section 378 ZF of the Companies Act, 2013, Company has to carry out internal audit of its accounts. Accordingly, Company has re- appointed M/s Ernst & Young LLP, Chartered Accountants as Internal Auditors of the Company for the year 2021-22. The Internal Auditors independently evaluate the adequacy of internal control and concurrently audit the majority of the transactions in value terms.

13. Statutory Auditors M/s S.B. Billimoria & Co., Chartered Accountants, Statutory Auditors retire at the ensuing 8th Annual General Meeting and being eligible offers themselves for re-appointment. The Company has received a certificate from the auditors to the effect that their reappointment if made, would be in accordance with the provisions of the Companies Act, 2013.The Auditor’s Report for financial year 2020-21 does not contain any qualification, reservation or adverse remark. The Auditors have conveyed their confirmation about their eligibility to continue as Statutory Auditors of the Company. During the year under review, the Statutory Auditors has not reported any instances of frauds committed in the Company by its officers or employees to the Board under section 143(12) of the Companies Act, 2013 details of which would need to be mentioned in this Report.Your Directors recommend the re-appointment of M/s S.B. Billimoria & Co. as Statutory Auditors of the Company at the ensuing 8th Annual General Meeting for a period of 3 years from FY 2021-22 to 2023-24.

14. Corporate Social ResponsibilityThe provisions of Corporate Social Responsibility under Sec. 135 of the Companies Act, 2013 is not applicable to the Company.

15. Particulars of Loans, Guarantees given and Investments made by the CompanyCompany has not granted any loans, nor given any guarantee or securities or made investments within the meaning of Sec. 186 of the Act.

16. Particulars of Contracts, Arrangements with related parties referred in Section 188 of the Companies Act, 2013All contracts/arrangements/ transactions entered into by the Company during the year under review with Related Parties were in ordinary course of business and on arm’s length basis in terms of provisions of the Act. There were no materially significant related party transactions entered into by the Company with the Promoters, Directors, Key Managerial Personnel or other designated persons which might have potential conflict with the interest of the Company at large. Further, during the year, the Company had not entered into any contract/arrangement/transaction with related parties which could be considered material or which is required to be reported in Form no. AOC-2 in terms of section 134(3) (h) read with section 188 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.

17. DepositsNo disclosure or reporting was required in respect of the details relating to deposits covered under the Companies Act, 2013 as there were no deposits during the financial year 2020-21.

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18. DetailsofsignificantandMaterialOrderspassedbytheRegulators,CourtsandTribunalsNo significant and material order has been passed by the regulators, courts, tribunals impacting the going concern status and Company’s operations in future.

19. Cost AuditThe provisions of Cost Audit as per section 148 does not apply to the Company.

20. Disclosure under the Sexual Harassment of Women at workplace (Prevention of, Prohibition and Redressal) Act, 2013The Company has in place a Sexual Harassment Prevention Policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

21. Risk ManagementRisk Management is the process of identification, assessment and prioritization of risks followed by coordinated efforts to minimize, monitor and mitigate/control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. These procedures are reviewed to ensure that management controls risk through means of a properly defined framework. The major risks have been identified by the Company and its mitigation process/measures have been formulated in the areas such as business, financial, human and statutory compliance etc.Company has developed and implemented a Risk Management Policy and the same has been adopted by the Board.

22. Vigil MechanismThe Company has established a Vigil Mechanism for Directors and employees pursuant to the provisions of Section 177(9) of the Companies Act, 2013 and the Board has delegated the function of overseeing the Vigil Mechanism to the Chief Executive of the Company. The Vigil Mechanism (Whistle Blower Policy) is available on the website of the Company.

23. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and out go(i) The Company is in the business of pooling, purchasing, processing of milk and milk products and marketing the same. In order to improve the quality of milk, the Company has installed waste heat recovery systems at Bulk Milk Cooling Units for generation of hot water without using electricity for cleaning of tank and pipe lines, electricity consumption also got reduced. In order to protect the environment, installed scroll compressors with 404A refrigerant which is environment friendly and will not affect the ozone layer for protection from UV rays from the sun. In addition, administrative and office operations are conducted in the manner whereby optimum utilization and maximum possible saving of energy is achieved. The Company has not made any significant capital investment on energy conservation equipment. (ii) The Company continuously making efforts to update the technology for improving the productivity and quality of its services and products. The Company’s operations do not require significant import of technology. (iii) Foreign exchange earnings and outgo are nil during the year under review

24. Applicability of Companies Act, 2013The Company being a Producer Company was governed by the provisions of part IX-A of the Companies Act, 1956. Thereafter, the Central Government has notified Chapter XXIA relating to Producer Companies of Companies Act, 2013 w.e.f 11th February, 2021. Upon the said notification, Chapter XXIA of the Companies Act, 2013 became the guiding law for Producer Companies. Consequently, Company started complying with the provisions of the Companies Act, 2013 since then.

25. Way forwardAs we are a growing concern and as a part of our growth strategy, the Company has planned to carry out following projects in the FY 2021-22:

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• Digitalization of the member forms is in planning to reduce the on-boarding time of member creation in our systems. It also helps in making the Company towards paperless office. • The data center at Noida is hosting our servers which are of 5 years old, the Company is working with nXtra, Airtel to upgrade the entire infrastructure at our data center to make it HANA ready without any incremental cost.• Further extending the operational area to Karnataka and Tamil Nadu in order to support & benefit small and marginal milk producers in line with Shreeja’s objective. • To continue our efforts in creating member awareness and further strengthen the member relations through VCG and MRG through various interventions.• Conducting more animal health camps to educate members to improve immunity of milch animals and enhance productivity. Under cattle insurance and AI programmes, intend to cover more area / animals to benefit the members. • Introducing new products like Sweets, Butter, Cheese and Ice creams etc., and planning to enter into Class B towns in Andhra Pradesh• We are planning to implement a dash board for sales analysis • We are implementing Darwin Box a HR software to automate the Employee Self Services (ESS), Performance Appraisal System, Payroll, etc.• To enhance the brand visibility as well as sales Company is planning to set up more no. of milk parlours across its sales area.

26. Acknowledgement The Board of Directors wish to convey their appreciation to members, business associates for their support and contribution during the period under review. The Directors would also like to thank bankers, employees, both internal & statutory auditors for their continued support and customers.The Board of Directors acknowledge with gratitude the encouragement and support extended by National Dairy Development Board, NDDB Dairy Services and Mother Dairy Fruit & Vegetable Private Limited

For and on Behalf of the Board of Directors

Chairman

Place: Tirupati

Date: 08 September 2021

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INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF SHREEJA MAHILA MILK PRODUCER COMPANY LIMITED

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying financial statements of SHREEJA MAHILA MILK PRODUCER COMPANY LIMITED (“the Company”), which comprise the Balance Sheet as at 31 March, 2021, Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Accounting Standards prescribed under section 133 of the Act read with the Companies (Accounting Standards) Rules, 2006, as amended (“Accounting Standards”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2021, its profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Information Other than the Financial Statements and Auditor’s Report Thereon

• The Company’s Board of Directors is responsible for the other information. The other information comprises the Director’s Report, but does not include the financial statements and our auditor’s report thereon.

• Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

• In connection with the audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of the audit or otherwise appears to be materially misstated.

• If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact. We have nothing to report in this regard.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

12

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

13

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors of the Company as on 31 March, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2021 from being appointed as a director in terms of Section 164(2) of the Act.

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

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of the Act, as amended,

In our opinion and to the best of our information and according to the explanations given to us, the Company being a private company, section 197 of the Act related to the managerial remuneration is not applicable.

h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order/CARO 2016”) issued by the Central Government in terms of Section 143(11) of the Act, we give in the “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.

3. As required by Section 378ZG of Part IV of Chapter XXIA of the Companies Act, 2013, we give in the “Annexure C” a statement on the matters specified in that Section.

For S. B. BILLIMORIA & CO.Chartered Accountants

(Registration No. 101496W)

Jitendra AgarwalPartner

(Membership No. 87104)UDIN:21087104AAAAFO6905

Place: New Delhi


14

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Shreeja Mahila Milk Producer Company Limited (“the Company”) as of 31 March, 2021 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

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

Auditor’s Responsibility

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

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

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

Meaning of Internal Financial Controls Over Financial Reporting

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

15

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March, 2021, based criteria for internal control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.





Place: New Delhi


ANNEXURE “B” TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2 under ‘Reports on Other Legal and Regulatory Requirements’ section of our report of even date)

i. In respect of its property, plant and equipment:

a. The Company has maintained proper records showing full particulars, including quantitative details and situation of the property, plant and equipment.

b. The property, plant and equipment were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the property, plant and equipment at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

c. The Company does not have any immovable properties of freehold or leasehold land and building and hence reporting under clause (i)(c) of the CARO 2016 is not applicable. .

(ii) As explained to us, the inventories were physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on physical verification.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

(iv) The Company has not granted any loans, made investments or provided guarantees and hence reporting under clause (iv) of the CARO 2016 is not applicable.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public, and hence reporting under clause (v) of the CARO 2016 is not applicable.

(vi) Having regard to the nature of the Company’s business / activities, reporting under clause (vi) of CARO 2016 is not applicable.

(vii) According to the information and explanations given to us, in respect of statutory dues:

16

a. The Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Employee’s State Insurance, Income Tax, Goods and Services Tax and other material statutory dues applicable to it with the appropriate authorities. The operations of the Company during the year did not give rise to any liability for Customs Duty.

b. There are no undisputed amounts payable in respect of Provident Fund, Employee’s State Insurance, Income Tax, Goods and Services Tax, Cess and other material statutory dues in arrears as at 31 March, 2021 for a period of more than six months from the date they became payable.

c. There are no dues of Income Tax and Goods and Services Tax as on 31 March, 2021 on account of disputes. The operations of the Company during the year did not give rise to any liability for Customs Duty.

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company has not taken any loan from government or financial institutions and it has not issued any debentures.

(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 is not applicable.

(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.

(xi) The Company is a private company and hence the provisions of section 197 of the Companies Act, 2013 do not apply to the Company.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.





Place: New Delhi


17

ANNEXURE “C” TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 3 under ‘Reports on Other Legal and Regulatory Requirements’ section of our report of even date)

i. The amount of debts due from sale of goods and services are as disclosed in Note 16 to the financial statements. According to the information and explanations given to us, no debts other than those disclosed in note 18 to the financial statements are considered as doubtful of recovery.

ii. According to the information and explanations given to us, cash on hand as at year-end has been physically verified by the management and no discrepancies were noticed on such verification. According to the information and explanations given to us, the Company does not hold any investment securities.

iii. The details of assets and liabilities as at 31 March, 2021 are as per the financial statements of the Company as at and for the year ended 31 March, 2021.

iv. In our opinion and according to the information and explanations given to us, the Company has not done any transaction which appears to be contrary to the provisions of Chapter XXIA of the Companies Act, 2013.

v. According to the information and explanations given to us, the Company has not granted any loan to its directors.

vi. According to the information and explanations given to us, the Company has not given any donations or subscriptions during the year.





Place: New Delhi


18


BALANCE SHEET AS AT 31 MARCH, 2021

Note No. As at 31 March, 2021

(Rupees)

As at 31 March, 2020

(Rupees)A. EQUITY AND LIABILITIES1. Shareholders’ funds (a) Share capital 3 22,90,17,900 17,11,19,500 (b) Reserves and surplus 4 11,42,79,800 11,93,92,584

34,32,97,700 29,05,12,084 2. Share application money pending

allotment30 29,32,300 3,19,10,000

3. Deferred grant 5 12,27,03,980 13,99,71,5264. Non - current liabilities (a) Long - term borrowings 6 - 1,95,60,000 (b) Other long-term liabilities 7 7,81,88,614 6,04,49,363 (c) Long - term provisions 8 2,97,66,422 2,14,37,989

10,79,55,036 10,14,47,352 5. Current liabilities (a) Short term borrowings 9 89,62,83,185 84,69,96,279 (b) Trade payables

(i) Total outstanding dues of micro and small enterprises

10 48,939 20,93,824

(ii) Total outstanding dues of creditors other than micro and small enterprises

10 34,54,93,111 25,18,90,360

(c) Other current liabilities 11 3,89,22,087 4,36,81,213 (d) Short - term provisions 12 11,70,434 41,24,251

1,28,19,17,756 1,14,87,85,927 Total 1,85,88,06,772 1,71,26,26,889

B.ASSETS1. Non - current assets (a) Property, Plant & Equipment

(i) Tangible assets 13a 33,09,16,962 35,05,45,335 (ii)Intangible assets 13b 10,50,710 19,42,197 (iii) Capital work in progress 3,54,009 -

(b) Deferred tax asset 14 75,36,306 62,62,471 (c) Long-term loans and advances 15 60,14,380 53,56,080 (d) Other non-current assets 16 - 43,320

34,58,72,367 36,41,49,403

19

Note No. As at 31 March, 2021

(Rupees)


(Rupees)2. Current assets (a) Inventories 17 5,02,85,496 3,65,52,920 (b) Trade receivables 18 1,05,63,99,810 96,04,28,565 (c) Cash and cash equivalents 19 38,42,92,846 33,60,10,518 (d) Short - term loans and advances 20 1,97,86,796 1,20,43,070 (e) Other current assets 21 21,69,457 34,42,413

1,51,29,34,405 1,34,84,77,486 Total 1,85,88,06,772 1,71,26,26,889


BALANCE SHEET AS AT 31 MARCH, 2021

See accompanying notes forming part of the financial statements

Place: New Delhi


In terms of our report attached

For S.B. BILLIMORIA & CO.

Chartered Accountants


For and on behalf of the Board of Directors

Vijaya Kolla

Chairman

Jayatheertha Chary

Director & Chief Executive

N. Amarendra Babu

Company Secretary

N.Rajesh

Head Finance & Accounts

Place: Tirupati


Usha Avula

Director

20


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2021

Note No. Year ended 31 March, 2021

(Rupees)

Year ended 31 March, 2020

(Rupees)

1. Revenue from operations 22 5,12,14,41,414 5,35,55,60,009

2. Other income 23 1,60,37,871 2,34,03,474

3. Total revenue (1+2) 5,13,74,79,285 5,37,89,63,483

4. EXPENSES

(a) Purchases of stock-in-trade 24 4,56,05,27,042 4,83,69,72,616

(b) Changes in inventories of stock-in-trade 25 (57,43,342) 32,83,370

(c) Employee benefits expense 26 13,81,30,881 10,55,46,822

(d) Finance costs 27 5,27,17,353 5,96,04,636

(e) Depreciation and amortisation expense 13c 3,34,84,179 3,99,62,653

(f) Other expenses 28 34,54,46,782 28,41,33,507

Total expenses 5,12,45,62,894 5,32,95,03,604

5.Profitbeforetax(3-4) 1,29,16,391 4,94,59,879

6. Tax expense:

(a) Current tax 45,92,370 1,48,30,520

(b) Tax adjustment of previous years 27,32,274 1,83,481

(c) Deferred tax credit (12,73,834) (32,81,555)

Net tax expense 60,50,810 1,17,32,446

7.Profitfortheyear(5-6) 68,65,581 3,77,27,433

8. Earnings per equity share:

(Nominal value Rs. 100 per share)

(a) Basic 35 3.46 23.17

(b) Diluted 35 3.46 23.16

Place: New DelhiDate: 08 September 2021

In terms of our report attachedFor S.B. BILLIMORIA & CO. Chartered Accountants



Vijaya KollaChairman

Jayatheertha CharyDirector & Chief Executive

N. Amarendra Babu Company Secretary

N.RajeshHead Finance & Accounts

Place: TirupatiDate: 08 September 2021

Usha AvulaDirector

21


CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021


(Rupees)


(Rupees)A. CASH FLOW FROM OPERATING ACTIVITIES:

Profit before tax 1,29,16,391 4,94,59,879 Adjustments For : Depreciation and amortisation expense 3,34,84,179 3,99,62,653 Loss on discard of property, plant and equipment - 73,94,612 Provision for employee benefits 85,57,901 78,84,878 Finance costs 5,26,51,351 5,94,93,347 Interest income (1,02,74,988) (1,41,50,505)OperatingProfitbeforeworkingcapitalchanges 9,73,34,834 15,00,44,864 Adjustments for movement in working capital:Decrease/(Increase) in inventories (1,37,32,576) (31,36,655)Decrease/(Increase) in trade receivables (9,59,71,245) 7,96,62,715 Decrease/(Increase) in short term loans and advances (77,43,726) (57,04,710)Decrease/(Increase) in long term loans and advances (19,18,100) (8,36,100)Decrease/(Increase) in other non-current assets 43,320 (2,677)(Decrease)/Increase in other long term liabilities 1,77,39,251 1,94,23,018 (Decrease)/Increase in trade payables 9,15,57,866 (1,86,30,488)(Decrease)/Increase in current liabilities 47,71,668 (7,35,49,156)Cash generated from/(used in) operations 9,20,81,291 14,72,70,811 Net income tax (paid)/refund (92,48,129) (1,43,72,196)Netcashflowfrom/(usedin)operatingactivities-(A) 8,28,33,162 13,28,98,615

B. CASH FLOW FROM INVESTING ACTIVITIES:Net proceeds from bank balances not considered as Cash and cash equivalents

(25,154) (4,00,13,704)

Payment for property, plant and equipment (net of capital grant)

(3,88,53,128) (8,23,08,761)

Interest received 1,15,47,944 1,38,86,649 Netcashflowfrom/(usedin)investingactivities-(B) (2,73,30,338) (10,84,35,816)

C. CASH FLOW FROM FINANCING ACTIVITIES:Proceeds from issue of equity share capital 2,59,88,400 1,10,30,100 Share application money received 29,32,300 3,19,10,000 Repayment of long term borrowings (1,95,60,000) (2,78,92,328)Net (decrease)/increase in short term borrowings 4,92,86,906 (6,17,08,139)Finance costs paid (5,39,40,182) (6,08,21,154)Dividend Paid including dividend tax (1,19,53,074) (1,30,90,177)Netcashflowfrom/(usedin)financingactivities-(C) (72,45,650) (12,05,71,698)

22


CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021


(Rupees)


(Rupees)Net increase in Cash and cash equivalents (A+B+C) 4,82,57,174 (9,61,08,899)Cash and cash equivalents at beginning of the year 21,50,52,672 31,11,61,571 Cash and Cash equivalents at the end of the year 26,33,09,846 21,50,52,672 Cash and cash equivalents comprises:Cash in hand 4,638 4,638 Balances with banks: - in current accounts 26,33,05,208 21,50,48,034

26,33,09,846 21,50,52,672 Add: Bank balances not considered as Cash and cash equivalent

12,09,83,000 12,09,57,846

Cash and cash equivalents as per Cash Flow Statement 38,42,92,846 33,60,10,518

Place: New DelhiDate: 08 September 2021

In terms of our report attachedFor S.B. BILLIMORIA & CO. Chartered Accountants








Usha AvulaDirector

23

Notes forming part of the financial statements

1. Corporate information Shreeja Mahila Milk Producer Company Limited

(“the Company”) was incorporated on 3 July, 2014 under Part IXA of the Companies Act, 1956.

The Company had started the procurement operations in the state of Andhra Pradesh from 15 September, 2014. The Company procures milk directly from milk producers through Milk Pooling Points in villages of Andhra Pradesh, Tamilnadu and sells to Mother Dairy Fruit and Vegetable Private Limited. The Company also trades in Polypack milk, milk products and cattle feed.

2. Significantaccountingpolicies The significant accounting policies are as

follows:a. Basis of accounting The financial statements of the Company

have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act”) / Companies Act, 1956 (“the 1956 Act”) as applicable. MCA has clarified that the provisions of part IXA of the Companies Act, 1956 shall be applicable to a producer company in the manner as if the Companies Act, 1956 has not been repealed. The financial statements are prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Use of estimates The preparation of financial statements

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

c. Cash and cash equivalents (for the purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

d. Cashflowstatement Cash flows are reported using the indirect

method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e. Revenue recognition Sales are recognized, net of returns and trade

discounts, on transfer of significant risk and rewards of ownership to the buyers, which generally coincides with the delivery of goods to customers.

f. Other income Interest income on deposits is recognized on

accrual basis.g. Property, plant and equipment and Intangible

Assets Property, plant and equipment Property, plant and equipment are carried

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


24

Intangible Assets Intangible assets are stated at their cost of

acquisition, less accumulated amortisation and impairment losses. An intangible asset is recognized, where it is probable that the future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured. The amortisable amount of intangible assets is allocated over the best estimate of its useful life on a straight-line basis.

The company capitalizes software costs where it is reasonably estimated that the software has an enduring useful life. Software is depreciated over the management’s estimate of its useful life of three years.

h. Capital work-in-progress Assets which are not ready for their intended

use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

i. Depreciation and amortisation Depreciation on tangible assets has been

provided on straight line method as per the useful life of the assets assessed as under based on technical advice, taking into account the nature of asset, the estimated usage of assets, the operating condition of the asset, past history of replacements, anticipated technological changes, manufactured warranties and maintenance support etc.

The useful life considered for charging depreciation is as follows:

Description Useful life (in years) Plant and equipment 10 Furniture and fixtures 15 Computers and software 3 Office equipment 10 Depreciation is provided pro-rata from the

date of addition. All assets costing Rs. 5,000 or less individually

are fully depreciated in the year of capitalization.

j. Inventories Inventories comprise traded goods and stores

and spares. Inventories are valued at lower of cost and net realizable value after providing for obsolescence and other losses, where considered necessary. Cost is determined using weighted average method. Cost includes all charges incurred in bringing the inventories to

their present location and condition. k. Grants Government grants and subsidies are

recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidies will be received. Government grants related to depreciable fixed assets are treated as deferred grants which is recognised in the statement of profit and loss on a systematic and rational basis over the useful life of the asset, i.e., depreciation charge on assets procured from such grants is appropriated from Deferred Grant and recognized in the Statement of Profit and Loss by way of reduced depreciation charge.

Revenue government grants and subsidies are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis and are deducted in reporting the related expense.

l. Employeebenefits Employee benefits include Provident Fund,

Employee State Insurance scheme, Gratuity, Sick leaves and compensated absences.

a. Definedcontributionplans The Company’s contributions to provident

fund and employees state insurance scheme is considered as defined contribution plan and are charged to the Statement of Profit and Loss based on the amount of contributions required to be made as and when services are rendered by the employees.

b. Definedbenefitplans Gratuity is considered as defined benefit

plan. Gratuity is provided based on actuarial valuation carried out at the balance sheet date. The incremental liability based on an actuarial valuation as per the ‘Projected Unit Credit’ method, as at the reporting date, is charged to the Statement of Profit and Loss Account. Actuarial gains and losses are recognized in the Statement of Profit and Loss.

c. Short-termemployeebenefits The undiscounted amount of short-term

employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the services. These benefit includes performance incentives and compensated absences which are expected to occur within twelve months after the end of

25

the period in which the employee renders the related services.

d. Long-termemployeebenefits Compensated absences which are not expected

to occur within twelve months after the end of the period in which the employee renders the related services are recognized as a liability at the present value of the defined benefit obligation as at the balance sheet date on the basis of actuarial valuation.

m. Earnings per share Basic earnings per share is computed by

dividing the net profit after tax by weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year as adjusted to the effects of all dilutive potential equity shares, except where results are anti-dilutive.

n. Taxes on income Income tax comprises current tax and

deferred tax. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. However, if there are unabsorbed depreciation and carry forward losses, deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legal enforceable right for such set off.

o. Borrowing cost Borrowing costs includes interest and ancillary

costs incurred. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset, pertaining to the period from commencement of activities relating to construction/development of qualifying asset upto the date of capitalization of such asset, are capitalized as part of the cost of that asset. All other borrowing costs are recognized as an expense in the statement of profit and loss in the year in which they are incurred.

p. Impairment of assets At each balance sheet date, the Company

reviews the carrying values of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-discount rate that reflects the current market assessments of time value of money and the risks specific to the asset.

Reversal of impairment loss is recognized as income in the statement of profit and loss.

q. Provisions and contingencies A provision is recognized when the Company

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

r. Leases Lease arrangements where the risks and

rewards incident to ownership of an asset substantially vest with the lessor are recognized as operating leases. Lease rent under operating leases are recognized in the statement of profit and loss account on straight line basis.

26

s. Material events Material adjusting events occurring after the

Balance Sheet date are taken into cognizance.t. Operating Cycle Based on the nature of products / activities

of the Company and the normal time between

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

Note 3: Share Capital

As at 31 March, 2021 As at 31 March, 2020 Number of

shares Amount Rupees

Number of shares

Amount Rupees

(a) Authorised share capitalEquity Shares of Rs. 100 each

30,00,000 30,00,00,000 30,00,000 30,00,00,000

(b) Issued, subscribed and fully paid up share capitalEquity Shares of Rs. 100 each

22,90,179 22,90,17,900 17,11,195 17,11,19,500

Refer Notes (i) to (iv) below

Notes:

(i) Rights, preferences and restrictions attached to shares

The Company has issued one class of equity shares having face value of Rs. 100 each. Each member is entitled to one vote. Members are entitled to limited return (dividend) and bonus in accordance with Article of Association of the Company.

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

As at and for year ended 31 March 2021

As at and for year ended 31 March 2020

Number of shares

Amount Rupees

Number of shares

Amount Rupees

Shares outstanding at the beginning of the year

17,11,195 17,11,19,500 15,52,740 15,52,74,000

Shares issued during the year ( Net of shares cancelled and reissued during the year)

5,78,984 5,78,98,400 1,58,455 1,58,45,500

Shares outstanding at the end of the year

22,90,179 22,90,17,900 17,11,195 17,11,19,500

(iii) The Company is registered under Part IXA of the Companies Act, 1956 as ‘Producer Company’ and none of the members holds 5% or more of the share capital of the Company.

(iv) No Share has been issued for a consideration other than cash or by way of bonus share during the yearoryearsimmediatelypreceedingthefinancialyear

27


Rupees


RupeesNote 4 - Reserves and surplus(a) General reserve

Opening balance 10,74,14,219 8,16,65,151 Add: Transferred from surplus in Statement of Profit and Loss - 2,57,49,068 Closing balance 10,74,14,219 10,74,14,219

(b) SurplusinStatementofProfitandLossOpening Balance 1,19,78,365 1,31,03,744 Profit for the year 68,65,581 3,77,27,433 Less:(i) Final limited return (dividend) to members for the

year ended 31 March, 2020 (Rs. 7 per share) 1,19,78,365 1,08,69,180

(ii) Tax on limited return (dividend)* - 22,34,564 (iii) Transferred to General reserve - 2,57,49,068 Closing balance 68,65,581 1,19,78,365

Total (a+b) 11,42,79,800 11,93,92,584 * Pursuant to the amendment in Income Tax Act, 1961 through Finance Act, 2021 dividend distribution tax has been repealed. Thus, Company is not liable to pay dividend distribution tax on the dividend declared on or after April 01, 2020.Note 5 - Deferred Grant(a) Opening Balance 13,99,71,526 11,26,42,395 (b) Add: Capital grant utilised during year (See Note 36) - 5,07,80,643 (c) Less: Depreciation pertaining to assets acquired from grant

(See Note 13) 1,72,67,546 2,34,43,105

(d) Less: Assets acquired on grant discarded during the year - 8,407 (e) Closing balance 12,27,03,980 13,99,71,526 Note 6: Long-term borrowings Secured(a) Term loan from National Dairy Development Board (NDDB) 1,95,60,000 3,91,20,000

Less: Current maturity of long term borrowings (see note 11) 1,95,60,000 1,95,60,000 - 1,95,60,000

(i) Details of Security provided in respect of secured long-term borrowings is as under:

(a) Term Loan from National Dairy Development Board

First Charge on the entire fixed assets of the company present and future by way of hypothecation including the immovable properties/property, plant and equipment.

(b) The company has been sanctioned the loan of Rs.9,78,00,000 for 7 years with a moratorium period on principal repayment of 2 years. The loan carries interest at 8.25% per annum. Loan is to be repaid in 60 equal monthly installments.


Notes forming part of the Financial Statements

28


Rupees


Rupees

Note 7: Other long-term liabilities

(a) Trade / security deposits received 7,81,88,614 6,04,49,363

7,81,88,614 6,04,49,363

Note 8 - Long term provisions

(a) Provision for employee benefits

(i) For compensated absences 1,91,30,990 1,26,10,264

(ii) For gratuity 1,06,35,432 88,27,725

2,97,66,422 2,14,37,989

Note 9 - Short term borrowings

(a) Unsecured

(i) Bills discounting facility from bank* 89,62,83,185 84,69,96,279

89,62,83,185 84,69,96,279

* The Company has availed the bill discounting facility from the bank for the period upto 90 days from the date of invoice. This average rate 6.35% (previous year 8.33%).

Note 10 - Trade payables

(a) Total outstanding dues of micro and small enterprises*

48,939 20,93,824

(b) Total outstanding dues of creditors other than micro and small enterprises

34,54,93,111 25,18,90,360

*Refer note 38 34,55,42,050 25,39,84,184

Note 11 - Other current liabilities

(a) Current maturity on long term borrowings (Refer note 6) 1,95,60,000 1,95,60,000

(b) Trade / security deposits received 13,27,000 3,92,500

(c) Payable to members against cancellation 27,93,230 6,07,580

(d) Advances received from customers 41,93,145 31,47,263

(e) Interest accrued but not due on borrowings 72,40,052 85,28,883

(f) Unclaimed/Unpaid dividends 9,83,000 9,57,709

(g) (i) Payable on purchase of property, plant and equipments - 82,67,254

(h) (ii) Statutory dues 28,25,660 22,20,024

3,89,22,087 4,36,81,213

Note 12 - Short term provisions

(a) Provision for employee benefits

(i) For compensated absences 5,95,593 4,60,176

(ii) For gratuity 3,06,567 2,12,516

(b) Provision for income tax (net of advance tax of Rs.43,24,096;(Previous year (1,13,78,961))

2,68,274 34,51,559

11,70,434 41,24,251

SHREEJA MAHILA MILK PRODUCER COMPANY LIMITEDNotes forming part of the Financial Statements

29

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14,3

26)

(3,0

0,82

2)(-)

(1

,58,

15,1

48)

0 (3

,00,

822)

31

As at 31 March, 2021 Rupees


Note 14 - Deferred tax asset (net)A. Taxeffectofitemsconstitutingdeferredtaxassets

a. Provision for compensated absences and gratuity 77,18,669 55,64,816 b. Disallowances under section 40(a)(i)(a) of the

Income Tax Act 1,46,337 3,23,360

c. Difference between book balance and tax balance of property, plant and equipment

- 3,74,295

78,65,006 62,62,471 B. Taxeffectofitemsconstitutingdeferredtaxliability

a. Difference between book balance and tax balance of property, plant and equipment

3,28,700 -

Deferred tax asset (net) 75,36,306 62,62,471 Note 15 - Long-term loans and advances(Unsecured, considered good)(a) Security deposits 46,84,099 27,65,999 (b) Advance Income Tax (net of provision for tax

Rs.40,568,747 ; previous year Rs. 44,071,545) 13,30,281 25,90,081

60,14,380 53,56,080 Note 16 - Other non-current assets(a) Fixed Deposit with bank* - 43,320

- 43,320 * The fixed deposits under lien with commercial tax department was released during the year.Note 17 - Inventories(At lower of cost and net realisable value)(a) Stock-in-trade:

(i) Raw milk 1,51,35,582 90,10,040 (ii) Cattle feed and others 1,56,40,827 1,59,26,354 (iii) Milk products 8,45,478 9,42,151

3,16,21,887 2,58,78,545 (b) Stores and spares 1,86,63,609 1,06,74,375

5,02,85,496 3,65,52,920 Note 18 - Trade receivables(Unsecured, considered good)(a) Outstanding for a period more than six months from

the date they were due for payment 9,10,462 9,10,826

(b) Others 1,05,54,89,348 95,95,17,739 1,05,63,99,810 96,04,28,565

Note 19 - Cash and cash equivalents(a) Cash on hand 4,638 4,638 (b) Balance with banks:

(i) In current accounts 26,33,05,208 21,50,48,034 Cash and cash equivalents as per AS 3 - Cash flow

statement 26,33,09,846 21,50,52,672


32



(c) Other bank balances(i) In earmarked accounts - Unpaid dividend accounts 9,83,000 9,57,709 (ii) In deposit accounts - original maturity of more than 3 months but

upto 12 months 12,00,00,000 12,00,00,137

38,42,92,846 33,60,10,518 Note 20 - Short - term loans and advances(Unsecured, considered good)(a) Advances to employees 84,895 2,47,761 (b) Prepaid expenses 33,82,467 50,32,539 (c) Advances to vendors 1,63,19,434 67,62,770

1,97,86,796 1,20,43,070 Note 21 - Other current assets(Unsecured, considered good)(a) Interest accrued on bank deposits 21,69,457 34,42,413

21,69,457 34,42,413 Note 22 - Revenue from operations(a) Sale of products

(See note (i) below) 5,12,14,41,414 5,35,55,60,009

5,12,14,41,414 5,35,55,60,009 (i) Sale of products comprises:

a. Traded goods(i) Raw and Pasteurised milk 4,07,60,25,122 4,50,71,87,593 (ii) Polypack milk and milk products 72,37,37,285 50,40,09,903 (iii) Cattle feed and others 32,16,79,007 34,43,62,513

5,12,14,41,414 5,35,55,60,009 Note 23 - Other income(a) Interest income

(i) On deposits with banks 1,02,74,988 1,41,50,505 (ii) Interest income - Others 2,55,380 -

(b) Other non-operating income(i) Membership fees 5,77,740 8,41,354 (ii) Liabilities/provisions no longer required written back 3,01,849 - (iii) Recovery from Transporter 18,11,736 75,74,099 (iv) Scrap Income 11,26,423 2,06,353 (v) Miscellaneous income 16,89,755 6,31,163

1,60,37,871 2,34,03,474 Note 24 - Purchases of stock-in-trade(a) Raw milk 3,73,17,84,766 4,11,11,51,799 (b) Polypack milk and milk products 53,96,34,985 40,35,16,379 (c) Cattle feed and others 28,91,07,291 32,23,04,438

4,56,05,27,042 4,83,69,72,616


33



Note 25 - Changes in inventories of stock-in-trade(a) Inventories at the beginning of the year 2,58,78,545 2,91,61,915 (b) Inventories at the end of the year 3,16,21,887 2,58,78,545 Net increase/(decrease) (57,43,342) 32,83,370 Note26-Employeebenefitsexpense(a) Salaries and wages 12,57,56,097 9,30,11,070 (b) Contribution to provident fund (Refer note 32) 56,82,753 48,63,270 (c) Gratuity expense (Refer note 32) 25,05,902 35,28,882 (d) Staff welfare expenses 41,86,129 41,43,600

13,81,30,881 10,55,46,822 Note 27 - Finance costs(a) Interest expense on:

(i) Term loans 21,69,272 41,56,550 (ii) Bill discounting 5,04,82,079 5,50,16,371

(b) Interest on delayed payment of income tax - 3,20,426 (c) Bank Charges 66,002 1,11,289

5,27,17,353 5,96,04,636 Note 28 - Other expenses(a) Consumption of stores and spare parts 5,73,26,234 3,84,07,051 (b) Power and fuel 1,32,06,875 1,17,74,179 (c) Rent 2,08,02,393 1,83,79,264 (d) Repair and maintenance - machinery 67,95,686 83,44,816 (e) Repair and maintenance - others 97,67,531 1,11,93,568 (f) Rates and taxes 16,29,654 11,39,504 (g) Freight, forwarding and distribution expenses 13,93,14,068 11,20,36,286 (h) Advertisement and promotion expenses 5,72,13,985 3,14,79,948 (i) Legal and professional fees 1,24,81,901 1,28,40,597 (j) Auditor’s remuneration (see note (i) below) 17,54,660 17,05,560 (k) Travelling and conveyance 92,55,997 1,13,01,928 (l) Loss on discard of property, plant and equipment - 73,94,612 (m) Bad debts written off 17,816 - (n) Miscellaneous expenses 1,58,79,982 1,81,36,194

34,54,46,782 28,41,33,507 Note:(i) Auditors’ remuneration comprises:

a. Statutory audit fee 12,71,000 11,55,400 b. Tax audit fee 2,16,000 1,96,100 c. Out of pocket expense - 93,890 d. GST on above 2,67,660 2,60,170

17,54,660 17,05,560 Note 29 - Contingent liabilities and commitments (to the extent not provided for)A. Contingent Liabilities Nil Nil


34



B. Commitments Estimated amount of contracts remaining to be executed

on capital account and not provided for 84,56,036 2,23,07,445

Note 30:

The Company had received share application money of Rs. 29,32,300 as at 31 March, 2021 against which allotment has been made for Rs.29,16,900 and Rs. 15,400 at the Board Meeting held on 21 May 2021 and 26 June 2021 respectively. The balance amount of Rs 900 will be alloted in subsequent Board meeting. The shares were alloted within the period sepcified in the share application form.

Note 31:In respect of the year ended 31 March, 2021, the directors in their meeting dated 08 September, 2021, have proposed a final dividend of Rs. 1,14,50,895 (Rs.5 per share) to be paid on fully paid equity shares. The equity dividend is subject to approval by shareholders at the annual general meeting and has not been included as a liability in the financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares.

Note32-Employeebenefitplans:Defined-ContributionPlansThe Company makes contributions to Provident Fund and Pension Fund for all employees, which are defined contribution plans. Under the schemes, the Company is required to contribute at a specified percentage of the payroll costs to fund the benefits. The contributions payable by the Company are at rates specified in the rules of the schemes.

The Company has recognised Rs. 56,82,753 (Previous year Rs. 48,63,270 ) for Provident Fund contribution in the statement of profit and loss.

DefinedbenefitplanThe Company offers its employees defined-benefit plan in the form of a gratuity scheme (a lump sum amount). Benefits under the defined benefit plan is based on years of service and the employee’s compensation (immediately before separation). The gratuity scheme covers all regular employees. Actuarial valuation is done based on “Projected Unit Credit” method. Gains and losses of changed actuarial assumptions are charged to the Statement of Profit and Loss.

The following tables set out the status of defined benefit scheme in respect of gratuity:

31 March, 2021 Rupees


i. ChangeindefinedbenefitobligationPresent value of obligation at the beginning of year 90,40,241 58,19,311 Current service cost 23,48,994 22,33,289 Interest cost 6,32,817 4,48,087 Actuarial loss (4,75,909) 8,47,506 Benefit paid (6,04,144) (3,07,952)Present value of obligations at the end of the year 1,09,41,999 90,40,241

ii. Amount recognised in the Balance SheetPresent value of defined benefit obligations 1,09,41,999 90,40,241 Net liability recognised in the balance sheet 1,09,41,999 90,40,241 The scheme is unfunded, hence plan assets are Nil.


35

iii. ExpenserecognisedintheStatementofProfitandLoss 31 March, 2021 Rupees


Current service costs 23,48,994 22,33,289 Interest cost 6,32,817 4,48,087 Net actuarial loss recognized during the year (4,75,909) 8,47,506 Expense recognized in the Statement of Profit and Loss 25,05,902 35,28,882

iv. Balance Sheet reconciliationNet liability at the beginning of the year 90,40,241 58,19,311 Benefit paid (6,04,144) (3,07,952)Expense as above 25,05,902 35,28,882 Net liability at the end of the year 1,09,41,999 90,40,241

v. Principal actuarial assumptions

Discount rate 6.9 % p.a 7 % p.aExpected salary escalations 9.00% p.a. 10.00% p.a.Expected return on plan assets N.A N.AAttrition rate:Below 25 Years 8% 8%26 to 30 Years 7% 7%31 to 35 Years 6% 6%36 to 40 Years 5% 5%41 to 45 Years 4% 4%46 to 50 Years 3% 3%51 to 55 Years 2% 2%Above 56 Years 1% 1%Mortality table used IALM 2012-14

UltimateIALM 2012-14

Ultimate

The discount rate is based on prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of obligation which is equal to remaining working life.The estimates of future salary increases considered, takes into account the inflation, seniority, promotions, increments and other relevant factors.

vi. Experience adjustment 31 March, 2021 31 March, 2020 31 March, 2019 31 March, 2018Rupees Rupees Rupees Rupees

Present value of DBO * 1,09,41,999 90,40,241 58,19,311 38,36,667Loss on obligations (4,75,909) 8,47,506 1,66,904 5,50,670* The amount of present value of defined benefit obligation is unfunded.

vii. Acturial assumptions for compensated absences; Acturial assumptions used for valuation of liability for compensated absences are same as (v) above.Note 33: Impact of code on social Security, 2020 The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment, received Presidential assent in September 2020. The Code has been published in the Gazette of India, however, the date on which the Code will come into effect is yet to be notified. The Company will assess the impact when Code and rules thereon will be notified and will record any related impact in the period the Code and rules thereon becomes effective. Note 34 - Leasing arrangementsThe Company has entered into operating lease arrangements for office premises for a period of Six years ended on 31 August, 2026. The lease rental expenses of Rs. 2,08,02,392.52 (previous year Rs. 1,83,79,264) in respect of obligation under operating leases have been recognized in the statement of profit and loss. The leases taken by the company are cancellable in nature.


36

Particulars Unit Year ended 31 March, 2021

Year ended 31 March, 2020

Note 35 - Earnings per shareNet profit after tax Rupees 68,65,581 3,77,27,433 Weighted average number of equity shares outstanding during year

Numbers 19,86,070 16,28,235

Nominal Value of Equity Shares Rupees 100 100 Basic Earnings per Share Rupees 3.46 23.17 Equity shares used to compute diluted earnings per share

Numbers 19,86,150 16,29,107

Diluted Earnings per Share Rupees 3.46 23.16


Rupees


RupeesNote No. 36 - Details of grantsDetails of grants received from NDDB and its utilisation is as under:(a) Opening Balance - 6,37,58,857 (b) Utilised during year

- For Property, plant and equipments - 5,07,80,643 (ii) For revenue expenses - 6,09,416 Total utilisations (i)+(ii) - 5,13,90,059

(c) Amount repaid during the year - 1,23,68,798 (d) Balance carried forward ( a-b-c) - -

Note:-Grant utilised for purchase of capital assets has been recorded as deferred grant and revenue grant utilised has been netted off with respective expense (see note 2k).Note No. 37 - Related party disclosuresA. Name of the related party and nature of relationship

Nature of Relationship Name of personKey Management Personnel: Mr. Jayatheertha Chary Chief Executive

B. The nature and volume of transactions during the year with the above related party are as follows:

Nature of transactions Amount (Rupees) 2020-21Managerial remunerationMr. Jayatheertha Chary Figures in bracket represents previous year figures

53,22,240 (49,28,000)

Note No. 38 - Segment ReportingThe disclosures as required under Accounting Standard AS-17 on Segment reporting are not required as the Company primarily deals in single business segment of Milk and Milk Products and operates in one geographical area.


37

Note No. 39 - Disclosures required under section 22 of the micro, small and medium enterprise development Act, 2006



Micro and Small Enterprises(a) Total outstanding at end of each accounting year to

micro enterprises and small enterprises(i) the principal amount remaining unpaid 48,939.00 20,93,824 (ii) interest due thereon - -

(b) Payments made to suppliers beyond the appointed day during the year accounting year(i) the principal amount - - (ii) interest due thereon - -

(c) Interest due and payable for the period of delay in making payment other than the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006

- -

(d) Interest accrued and remaining unpaid - - (e) Further interest due and payable even in the

succeeding year, until such date when the interest dues as above are actually paid

- -

Note No. 40On September 20, 2019, the Government of India vide the Taxation Laws (Amendment) Ordinance 2019, inserted Section 115BAA in the Income Tax Act, 1961, which provides domestic companies an option to pay Income tax at reduced rate of 22% effective April 1, 2019 subject to certain conditions. The Company has availed the option in the financial year 2019-2020. Accordingly, the tax expenses for the year ended March 31, 2021 and March 31, 2020 have been provided at reduced tax rate.Note No. 41:The Ministry of home affairs vide order No.40-3/2020 dated 24 March, 2020 imposed country wide lockdown and declared the Company’s business of trading of milk and other dairy products as an essential service. Hence, dairy industry in which the Company operates is among the businesses that are least impacted due to COVID-19. The Company believes that thus far, there is no significant impact of COVID-19 pandemic on the financial position and performance of the Company. Further, the company is not expecting any significant change in estimates as of now as the company is running its business and operations as usual without any major disruptions.Note No. 42:Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/ disclosure.







Usha AvulaDirector


38

SHREEJA MAHILA MILK PRODUCER COMPANY LIMITEDMINUTES OF THE SEVENTH ANNUAL GENERAL MEETING OF THE COMPANY HELD ON MONDAY THE 28th DAY OF DECEMBER 2020 AT 1ST FLOOR, BACHALA TOWERS, PLOT NO. 29 & 30, S.G.S ARTS COLLEGE ROAD, NEW INDIRA NAGAR, TIRUPATI – 517501, ANDHRA PRADESH AT 11:00 AMPRESENT:1. Smt. Lavanya Kumari Bojja : Chairman & Shareholder2. Smt. Sailaja Kampalle : Director & Shareholder3. Smt. Vijaya Kolla : Director & Shareholder4. Smt. Kuppala Sailaja : Director & Shareholder5. Smt. Usha Avula : Director &Shareholder6. Smt. Nirupa Kovi : Director & Shareholder7. Smt. Saraswathi Kasireddy : Director & Shareholder8. Shri Jayatheertha Chary : Director & Chief Executive9. Shri Amarendra Babu Nagasuri : Company Secretary A. Smt. Lavanya Kumari Bojja took the Chair at 11:00 A.M. She asked the Company Secretary to confirm

the requisite attendance and quorum for commencing the meeting.B. Thereafter, Shri Amarendra Babu Nagasuri, Company Secretary, stated that as per the attendance

register there were 34 members present in-person and 6,660 members were present through proxy. He further stated that the requisite quorum as per the section 581Y of the Companies Act, 1956 read with Article 11.6 of Articles of Association is 21,633 members.

C. The Chairman noted that the quorum of 21,633 shareholders, being the minimum number of members required to form quorum, pursuant to section 581Y of the Companies Act,1956, were not present. Thereafter, pursuant to the requirements of Article 11.6 of the Articles of Association of the Company, the Chairman decided to wait for half-an-hour for more members to join the meeting.

D. Smt. Lavanya Kumari Bojja took the Chair at 11:30 A.M. She asked the Company Secretary to confirm the requisite attendance and quorum for commencing the meeting.

E. Thereafter, Shri Amarendra Babu Nagasuri, Company Secretary, stated that as per the attendance register there were 34 members present in-person and 6,660 members were present through proxy. He further stated that the requisite quorum as per the section 581Y of the Companies Act, 1956 read with Article 11.6 of Articles of Association is 21,633 members.

F. At 11:30 A.M, the Chairman noted that the quorum was still not present and declared that pursuant to Article 11.6 of the Articles of Association of the Company, the Seventh Annual General Meeting of the members of the Company stands adjourned and shall reassemble on the same day at the same place after 3 hours from its scheduled time.

G. At 02:30 P.M, the members present reassembled at the venue. Shri Amarendra Babu Nagasuri, Company Secretary, stated that as per the attendance register there were 34 members present in-person and 6,660 members were present through proxy. The Chairman noted that the minimum number of members required to form quorum were still not present. Thereafter, the Chairman decided to wait for half-an-hour pursuant to the requirements of Article 11.6 of the Articles of Association of the Company.

H. At 3.00 P.M, the Chairman declared that 34 members present in-person (holding 1,293 shares) and 6,660 members were present through proxy (holding 1,95,298 shares) shall be considered as the quorum for the meeting pursuant to Article 11.6 of the Articles of Association of the Company after ascertaining the same from Company Secretary. The Company Secretary stated that the Register of Proxies, Members’ Register and the Register of Directors’ shareholding were available and open for inspection. The meeting was then called to order.

I. The Chairman welcomed the Members and Directors to the 7th Annual General meeting of the Company. J. Thereafter, the Chairman commenced the proceeding of meeting by reading Values, Mission & Vision of

the Company.K. Thereafter, the Chairman in her speech briefed about the operations of the Company during the FY

39

2019-20 and activities to be carried out by the Company.L. Thereafter, the Chairman advised the Company Secretary to proceed further to transact the business

set out in the notice of the Seventh Annual General Meeting. M. The notice convening the Seventh Annual General Meeting of the Company, having been previously

circulated to the Members, was taken as read with the consent of all the Members present.N. Thereafter, the following agenda items as per notice dated 27th November, 2020 convening the meeting

were taken up for consideration.The meeting transacted the following businesses:Ordinary Business:1. Toreceive,considerandadopttheauditedBalanceSheetasat31stMarch2020andtheProfitand

Loss Account for the period ended on that date and the Directors’ and Auditors’ report thereon. The Company Secretary read out the Auditors’ Report on accounts for the year ended 31st March 2020.1.1 Smt. B. Aswini (Folio No.: 0101613) proposed the following resolution as an Ordinary Resolution: RESOLUTION NO.: 01/7th AGM:28.12.2020/2020-21 “RESOLVED THAT the Audited Balance Sheet as at 31st March, 2020 and the Profit and Loss Account for

the year ended on that date be and are hereby adopted.” Smt. C. Kumari (Folio No.: 0027204) seconded the resolution. The Chairman then put the motion to vote and on show of hands declared the same as carried

unanimously.2. To consider and declare the limited return (dividend) on share capital of the Company and in this

regard to pass the following resolution.2.1 Smt. K. Lalitha (Folio No.: 0102381) proposed the following resolution as an Ordinary Resolution: RESOLUTION NO.: 02/7th AGM:28.12.2020/2020-21 “RESOLVED THAT the limited return (dividend) on share capital at the rate of Rs. 7 /- (Rupees Seven

only) per equity share out of the current profits of the period ended 31st March 2020, on 17,11,195 equity shares of Rs.100/- each fully paid up absorbing Rs. 1,19,78,365 /- for the Financial Year 2019-20 be and is hereby approved and confirmed, and that the same be paid to those equity shareholders, whose names appeared on the Register of Members as on 31st March 2020.”

Smt. A. Navanethamma (Folio No.:0025402) seconded the resolution. The Chairman then put the motion to vote and on show of hands declared the same as carried

unanimously.3. To appoint a director in place of Smt. Lavanya Kumari Bojja (DIN: 06881632), representing “Class –

A” on the Board of Directors who retire by rotation and in her place to appoint Smt. N Vanasri (DIN: 08902829) representing “Class – B” to ensure class representation of members on the Board based on patronage criteria and in this regard pass the following resolution as an Ordinary resolution:

3.1 Smt. R. Aruna (Folio No.: 0011952, Class – B) proposed the following resolution as an Ordinary Resolution:

RESOLUTION NO.: 03/7th AGM: 28.12.2020/2020-21 “RESOLVED THAT, Smt. Lavanya Kumari Bojja (DIN: 06881632), representing “Class – A” on the Board

of Directors, who retires by rotation and in terms of Article 9.6 (iii) of Articles of Association of the Company, not being eligible for re-appointment and in her place Smt. N Vanasri (DIN: 08902829), representing “Class – B” of the members of the Company, be and is hereby appointed as Director in terms of Article 9.6 and other relevant articles of the Articles of Association of the Company and applicable provisions, if any, of the Companies Act, 1956/2013 and rules framed there under (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

Smt. B. Anandamma (Folio No.:0025250, Class – B) seconded the resolution. Thereafter, the Chairman informed that only members belonging to “Class – B” would be entitled to

40

vote on the resolution. The Chairman put the motion to vote and on a show of hands declared the same as carried unanimously4. To appoint a director in place of Smt. Kampalle Sailaja (DIN: 06882858), representing “Class – B”

on the Board of Directors who retire by rotation and in her place to appoint Smt. S Saraswathi (DIN: 08903045) representing “Class – B” to ensure class representation of members on the Board based on patronage criteria and in this regard pass the following resolution as an Ordinary resolution:

4.1 Smt. G. Haritha (Folio No.:0064605, Class – B) proposed the following resolution as an Ordinary Resolution:

RESOLUTION NO.: 04/7th AGM:28.12.2020/2020-21 “RESOLVED THAT, Smt. Kampalle Sailaja (DIN: 06882858), representing “Class – B” on the Board of

Directors, who retires by rotation and in terms of Article 9.6 (iii) of Articles of Association of the Company, not being eligible for re-appointment and in her place Smt. S Saraswathi (DIN: 08903045), representing “Class – B” of the members of the Company, be and is hereby appointed as Director in terms of Article 9.6 and other relevant articles of the Articles of Association of the Company and applicable provisions, if any, of the Companies Act, 1956/2013 and rules framed there under (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

Smt. P. Vani (Folio No.:0064601, Class – B) seconded the resolution. Thereafter, the Chairman informed that only members belonging to “Class – B” would be entitled to

vote on the resolution. The Chairman put the motion to vote and on a show of hands declared the same as carried unanimously.5. To consider and appoint Smt. M Thayaramma (DIN: 08905157) as a Director representing “Class –

B”, in this regard pass the following resolution as an Ordinary resolution: 5.1 Smt. K. Madhu (Folio No.:0012418, Class – B) proposed the following resolution as an Ordinary

Resolution: RESOLUTION NO.: 05/7th AGM:28.12.2020/2020-21 “RESOLVED THAT, Smt. M Thayaramma (DIN: 08905157), representing “Class – B” be and is hereby

appointed as Director in terms of Article 9.5(ii) and other relevant articles of the Articles of Association of the Company and applicable provisions, if any, of the Companies Act, 1956/2013 and rules framed there under (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

Smt. S. Pushpa (Folio No.:0071537, Class – B) seconded the resolution. Thereafter, the Chairman informed that only members belonging to “Class – B” would be entitled to

vote on the resolution. The Chairman put the motion to vote and on a show of hands declared the same as carried unanimously6. To consider and appoint Smt. P Vijaya Lakshmi (DIN: 08902806) as a Director representing “Class –

C”, in this regard pass the following resolution as an Ordinary resolution: 6.1 Smt. M. Saradha (Folio No.:0104061, Class – C) proposed the following resolution as an Ordinary

Resolution: RESOLUTION NO.: 06/7th AGM:28.12.2020/2020-21 “RESOLVED THAT, P Vijaya Lakshmi (DIN: 08902806), representing “Class – C” be and is hereby

appointed as Director in terms of Article 9.5(ii) and other relevant articles of the Articles of Association of the Company and applicable provisions, if any, of the Companies Act, 1956/2013 and rules framed there under (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

Smt. P. Neeraja (Folio No.:0025205, Class – C) seconded the resolution. Thereafter, the Chairman informed that only members belonging to “Class – C” would be entitled to

vote on the resolution. The Chairman put the motion to vote and on a show of hands declared the same as carried unanimously

41

7. To appoint StatutoryAuditors, fix their remuneration and in this regard to pass the followingresolution:

7.1 Smt. M. Varalakshmi (Folio No.: 0067188) proposed the following resolution as an Ordinary Resolution RESOLUTION NO.: 07/7th AGM:28.12.2020/2020-21 “RESOLVED THAT M/s S.B. Billimoria &Co., Chartered Accountants, Gurugram, Haryana (Firm

Registration No 101496W), be and are hereby appointed as Statutory Auditors of the company, to hold the office from conclusion of this Annual General Meeting until the conclusion of the next annual general meeting at a remuneration of Rs. 12,70,940/- (Rupees Twelve Lakh Seventy Thousand Nine Hundred Forty only) plus applicable Goods and Service tax and reimbursement of actual out of pocket expenses.”

Smt. E. Munilakshmi (Folio No.:0064618) seconded the resolution. The Chairman put the motion to vote and on a show of hands declared the same as carried unanimously8. To consider and approve the Budget of the Company for the Financial Year 2020-218.1 Smt. T. Muragamma (Folio No.: 0063057) proposed the following resolution as an Ordinary Resolution RESOLUTION NO.: 08/7th AGM:28.12.2020/2020-21 “RESOLVED THAT, the Budget of the Company for the Financial Year 2020-21, as placed before the

meeting, be and is hereby approved.” Smt. T. Delli (Folio No.:0028452) seconded the resolution. The Chairman put the motion to vote and on a show of hands declared the same as carried unanimouslySpecial Business:9. To consider and approve the alteration in the Articles of Association of the Company and in this

regard pass the following resolution as Special Resolution:9.1 Smt. T. Vaidehi (Folio No.: 0069948) proposed the following resolution as Special Resolution RESOLUTION NO.: 09/7th AGM:28.12.2020/2020-21 “RESOLVED THAT, pursuant to the relevant provisions of Part IX-A of the Companies Act, 1956, in

particular Sections 581-I, 581ZQ, 581ZR and other applicable provisions, if any, of the Companies Act, 1956, including its Section 31 (together with any statutory modification(s) and re-enactment(s) thereof for the time being in force) and the rules framed thereunder, consent of the Members be and is hereby accorded for the alteration of Articles of Association of the Company as mentioned below:

(1) The existing Article 4.3.ii be altered/modified and shall be read as under: 4.3 iii. Any Member who is not eligible to continue as a Member shall be served a written notice by the

Company for removal as Member and given an opportunity of being heard. The Member would need to reply to the notice within

the stipulated period as specified in the notice. Such notice shall be send by/ through: - Registered Post to the Member at his last known address and be deemed to be served five days

after posting; or - Electronic mode to the Member at her e-mail ID registered with the Company and be deemed to

be served on the day of sending e-mail to Member. Thereafter, the Board shall take a decision in the matter. (2) The existing Article 9.6.ii be altered/modified and shall be read as under: 9.6 ii. Any vacancy on the Board to be filled at the Annual General Meeting shall be based on the

recommendation of the Nominating Committee appointed by the Board (3) The existing Article 11.6 (i)(c) be altered/modified and shall be read as under: 11.6 (i)(c). No person shall be appointed as proxy unless she is a Member. A member appointed as proxy

shall act on behalf of such member or number of members not exceeding three hundred and holding in the aggregate not more than ten percent of the share capital of the company.

RESOLVED FURTHER THAT, the Chief Executive and the Company Secretary of the Company be and are

42

hereby severally authorised to file necessary forms with the Registrar of Companies and do all such acts, deeds, matters and things and to sign and execute all such documents as may be necessary to give effect to this resolution.”

Smt. V. Muni Lakshmi (Folio No.: 0079758) seconded the resolution. The Chairman then put the motion to vote and on show of hands declared the same as carried

unanimously.10. Toconsiderandapproverevisedcriteriaforcategorizingthemembersintodifferentclassesbased

on patronage and in this regard pass the following resolution as an Ordinary Resolution: 10.1 Smt. R. Vani (Folio No.: 0101692) proposed the following resolution as an Ordinary Resolution RESOLUTION NO.: 10/7th AGM:28.12.2020/2020-21 “RESOLVED THAT in supersession of resolution passed at 1st Annual General Meeting held on 23rd

August 2014, in terms of Article 9.4 of the Articles of Association of the Company, the revised criteria for categorizing members into different classes based on the members’ participation in business (i.e., patronage) are as set out herein below:

Sl. No. Parameter Class – A Class – B Class – C1 No. of days of milk supplied to the MPC in

a year>=300 days >=270 days >=200 days

2 Annual Milk Quantity supplied to the MPC (in litres)

>=5,000 >=2,500 >=500

3 Milk supply ratio between two halves of the year. (i.e., April to September as one half year and October to March as the other half year).

Not more than 3

Not more than 3

Not more than 3

4 Minimum number of MPC shares subscribed (amount of share capital contributed)

50 shares (Rs. 5,000/)

25 shares(Rs. 2,500/-)

5 shares(Rs 500/-)

Note :– a) The actual share contribution or the actual milk quantity supplied, whichever is lower, will be

considered for the purpose of arriving at the categorization of class.b) For the purpose of patronage calculation, the following shall be considered:

i. Members who have been admitted during the previous financial year and have not yet completed 365 days of their membership but have subscribed the minimum required share capital shall be considered to belong to that class.

ii. Any member who will not meet the criteria under Class A or Class B may slide to an appropriate lower class for which the member meets the criteria. However, they will not be eligible to contest for the Board of Directors position for that year.

iii. Those members who are not fulfilling the required criteria to retain at least ‘Class C’ will be issued notice for cancellation of membership as per the provisions of Article 4.3 read with Article 8 of the Articles of Association of the Company.

be and are hereby approved and adopted and effective from FY 2020-21.” Smt. K. Sujatha (Folio No.: 0054001) seconded the resolution. The Chairman then put the motion to vote and on show of hands declared the same as carried

unanimously.11. There being no other business, the meeting concluded with a vote of thanks to the Chair by Shri

Amarendra Babu Nagasuri, Company Secretary of the Company

For and on Behalf of the Board of Directors

Chairman

Place: Tirupati

Date: 29 January 2021

43


Budget for Financial Year 2021-22

(A) Financial Budget (Rupees in lakh)

Sr. No Particulars Amount(A) INCOME:

Total Income 82,977.85

EXPENSES:

Variable Expenses 78,827.17Sales and Distribution Expenses 408.18Fixed Expenses 3,477.47

(B) Total Expenses 82,712.82(C) Profit Before Tax (A-B) 265.03(D) Corporate Tax 66.71(E) ProfitAfterTax(C-D) 198.32

(B) Capital Budget (Rupees in lakh)

Sr. No Particulars Amount

1 BMCU Machinery, Equipment & ETP 703.00

2 Coolers, Kiosks & Vending Machines 229.15

3 Plant & Machinery 100.00

4 Software, Laptops, Desktops, Printers etc. 99.00

5 Laboratory equipment, Food Safety, Hygiene Stations 35.70

6 Office equipment etc. 6.00

7 Tickle spray Machine 2.00

Total 1,174.85

44

SHREEJA MAHILA MILK PRODUCER COMPANY LIMITED(CIN: U01403AP2014PTC094771)

Regd.Office:3rd&4thFloors,BachalaTowers,PlotNo.29&30,S.G.S.ArtsCollegeRoad,NewIndiraNagar, Tirupati – 517501, A.P.

NOTICENotice is hereby given that the 8th Annual General Meeting of the members of Shreeja Mahila Milk Producer Company Limited will be held on Thursday, the 30th day of September 2021 at 1st Floor, Bachala Towers, Plot No. 29 & 30, S.G.S Arts College Road, New Indira Nagar, Tirupati – 517501, Andhra Pradesh at 09.00 A.M. to transact the following business:Ordinary Business:1. To receive, consider and adopt the audited Balance Sheet as at 31st March 2021 and the Profit and Loss

Account for the period ended on that date and the Directors’ and Auditors’ report thereon and in this regard to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT the Audited Balance Sheet, the Profit and Loss Account, cash flow statement for the period ended as at 31st March, 2021 together with schedules and notes forming part thereof and the Directors’ and Auditors’ report of the Company as approved by the Board of Directors, be and are hereby adopted.”

2. To consider and declare the limited return (dividend) on share capital of the Company and in this regard to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT the limited return (dividend) on share capital at the rate of Rs. 5/- (Rupees Five only) per equity share out of the current profits for the period ended 31st March 2021 and reserves, on 22,90,179 equity shares of Rs.100/- each fully paid up absorbing Rs. 1,14,50,895/- for the Financial Year 2020-21 be and is hereby approved and confirmed, and that the same be paid to those equity shareholders, whose names appeared on the Register of Members as on 31st March 2021.”

3. To consider and appoint a director in place of Smt. Usha Avula (DIN: 08211280) representing “Class – A” on the Board of Directors, who retires by rotation and in this regard pass the following resolution as Ordinary resolution:

“RESOLVED THAT, Smt. Usha Avula (DIN: 08211280), representing “Class – A” on the Board of Directors, who retires by rotation and in terms of Article 9.6 (iii) of Articles of Association of the Company, being eligible for re-appointment be and is hereby reappointed as Director in terms of Article 9.6 of the Articles of Association of the Company and as per the provisions of Section 152 and other applicable provisions, if any, of the Companies Act, 2013 and rules framed there under (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

4. To appoint a director in place of Smt. Prameela Kadiagaranepalli (DIN: 07908794), representing “Class – C” on the Board of Directors who retire by rotation and in her place to appoint Smt. Pushpalatha Kaligari (DIN: 09303735) representing “Class – C” to ensure class representation of members on the Board based on patronage criteria and in this regard pass the following resolution as an Ordinary resolution:

“RESOLVED THAT, Smt. Prameela Kadiagaranepalli (DIN: 07908794), representing “Class – C” on the Board of Directors, who retires by rotation and in terms of Article 9.6 (iii) of Articles of Association of the Company, not being eligible for re-appointment and in her place Smt. Pushpalatha Kaligari (DIN: 09303735), representing “Class – C” of the members of the Company, be and is hereby appointed as Director in terms of Article 9.6 and other relevant articles of the Articles of Association of the Company and applicable provisions, if any, of the Companies Act, 2013 and rules framed there under (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

5. To appoint a director in place of Smt. Sailaja Kuppala (DIN: 07908932), representing “Class – C” on the Board of Directors who retire by rotation and in her place to appoint Smt. Kanemma Pakala (DIN: 09303629) representing “Class – C” to ensure class representation of members on the Board based on patronage criteria and in this regard pass the following resolution as an Ordinary resolution:

45

“RESOLVED THAT, Smt. Sailaja Kuppala (DIN: 07908932), representing “Class– C” on the Board of Directors, who retires by rotation and in terms of Article 9.6 (iii) of Articles of Association of the Company, not being eligible for re-appointment and in her place Smt. Kanemma Pakala (DIN: 09303629), representing “Class – C” of the members of the Company, be and is hereby appointed as Director in terms of Article 9.6 and other relevant articles of the Articles of Association of the Company and applicable provisions, if any, of the Companies Act, 2013 and rules framed there under (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

6. To consider and appoint Smt. Sreedevi Kuntapalli (DIN: 06881611) as a Director representing “Class – C”, in this regard pass the following resolution as an Ordinary resolution:

“RESOLVED THAT, Smt. Sreedevi Kuntapalli (DIN: 06881611), who was appointed as additional director of the company w.e.f. 26th March 2021 be and is hereby appointed as Director in terms of the provisions of section 152, 161 & 378P of the Companies Act, 2013 and any other applicable provisions of the Companies Act, 2013 and the Companies (Appointment and Qualification of Directors) Rules, 2014 (together with any statutory modification or re-enactment thereof for the time being in force), whose period of office shall be liable to retire by rotation.”

7. To reappoint Statutory Auditors, fix their remuneration and in this regard to pass the following resolution as an Ordinary resolution:

“RESOLVED THAT pursuant to the provisions of Section 139 and other applicable provisions, if any, of the Companies Act,2013 read with the Companies (Audit and Auditors) Rules, 2014, the members do and hereby appoint M/s S.B. Billimoria & Co., Chartered Accountants, Gurugram, Haryana (Firm Registration No 101496W), as the Auditors of the Company from the conclusion of this Meeting to hold such office for a period of three years till the conclusion of the 11th Annual General Meeting, to conduct the audit for the financial year(s) 2021-22 to 2023-24, at a remuneration to be fixed by the Board.”

8. To consider and approve the Budget of the Company for the Financial Year 2021-22 and in this regard to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT the Budget of the Company for the FY 2021-22 as laid before the meeting be and is hereby approved.”

Special Business:9. To consider and approve the alteration in the Memorandum of Association of the Company and in this

regard pass the following resolution as Special Resolution: “RESOLVED THAT pursuant to the relevant provisions of Chapter XXIA, and section 13 and other

applicable provisions, if any, of the Companies Act, 2013 (together with any statutory modification or re-enactment thereof for the time being in force), the applicable provisions of the Memorandum and Articles of Association of the Company and subject to the approval of members, the existing Clause III A of Memorandum of Association of the Company be altered by adding following new object as sub clause 5 and renumbering the existing sub clause 5 as new sub clause 6.

“5. To carry on the business of purchasing, producing, processing, selling, trading, import, export etc. of primary produce and its derivatives including but not limited to edible oil, fruits and vegetables primarily of the members and also of others, marketing of the same and to deal in activities that are part of or incidental to any activity related thereto.”

RESOLVED FURTHER THAT the Chief Executive and the Company Secretary be and is hereby severally authorized to take all such steps and to do all such acts, deeds, matters and things, as it may in its absolute discretion deem necessary and expedient and to sign and execute all necessary documents, returns for the purpose of giving effect to the aforesaid resolution along with filling of necessary E-forms and to settle any question, difficulty or doubt that may arise in this regard.”

10. To consider and approve the alteration in the Articles of Association of the Company and in this regard pass the following resolution as Special Resolution:

“RESOLVED THAT, pursuant to the provisions of 378-I and other applicable provisions, if any, of the Companies Act, 2013, including the provisions of Chapter XXI-A of the Act and the rules framed thereunder, consent of the Members be and is hereby accorded for the alteration of Articles of Association of the Company as mentioned below:

46

Article 1.2, 1.3, 2.1 (i), 2.1(vii), 2.1(ix), 2.1(xiii), 9.17, 9.18(ii)(k), 19.1 are proposed to replace in the manner and to the extent as follows and new Article 2.1(viiia) is proposed to be inserted after Article 2.1(viii) and Article 11.12(iii) will be omitted and new Article 11.13 will be inserted.

Article 1.2:- Regulations contained in Table F, except regulations 45 to 47 in the Schedule I to the Act, shall not apply to the Company.

Article 1.3 (i):- The Company is a producer company within the meaning of Section 378A (l) of the Companies Act, 2013.

(ii):- All the limitations, restrictions and provisions of the Act, other than those specified in Chapter XXIA of the Act, applicable to a private company shall, apply to the Company, and as if it is a private limited company in so far as they are not in conflict with the provisions of Chapter XXIA of the Act.

(iii):- The Company is deemed to be a Private Company within the meaning of Section 378C (5) of the Companies Act, 2013 and accordingly;

a. Restrict the right to transfer its shares in the manner and to the extent hereinafter provided; b. Prohibits any invitation to the public to subscribe for any shares in, or debentures of, the Company;

and Article 2.1.i:- ‘Act’ means the Companies Act, 2013 (No.18 of 2013) or any statutory modification or

re-enactment thereof for the time being in force. Article 2.1.vii:- ‘Company’ means the Shreeja Mahila Milk Producer Company Limited. Article 2.1.(viiia):- “Expert Director” means a director referred to in Section 378P of the Act; Article 2.1.ix:- ‘“Financial Year” means the period ending on the 31st day of March every year in

respect whereof financial statement of the company is made up. Article 2.1.xiii:- ‘Mutual Assistance Principles’ means the principles set out in Chapter XXIA of the Act,

and as provided in Article 3 Article 9.17:- The Directors may be entitled to such fees and allowances including travelling and hotel

expenses for attendance at the meetings of the Board and its Committees, if any constituted by the Board in terms of provisions of section 378U of the Act, as may be decided by the Board.

Article 9.18 ii k:- to constitute a Nominating Committee in terms of the provisions of section 378U of the Act, to scrutinize applications received from eligible Members for positions on the Board based on the defined criteria as approved in the General meeting and as provided in these Articles, and accordingly recommend eligible members to the Board for its consideration. In turn the Board, after due consideration in the Board meeting, shall recommend Members for the position on the Board to be elected or appointed by the Members in the Annual General Meeting.

Article 11.13:- All items of business to be transacted at the General Meeting shall be deemed as Ordinary and the provisions of Section 102 of the Act shall not apply.

Article 19.1:- The Board shall provide for the safe custody of the Seal and subject to the provisions contained in the Companies (Share Capital and Debenture) Rules, 2014, the Seal shall not be affixed to any instrument except by the authority previously given by the Board or a Committee of the Board authorized by the Board in that behalf; the Board may designate such person(s) who shall sign in any manner prescribed under law, every instrument to which the Seal is affixed in his or their presence.”

RESOLVED FURTHER THAT, the Chief Executive and the Company Secretary of the Company be and are hereby severally authorised to file necessary forms with the Registrar of Companies and do all such acts, deeds, matters and things and to sign and execute all such documents as may be necessary to give effect to this resolution.”

By order of the Board of Directors

N Amarendra BabuCompany Secretary


47

Notes:1. THE COMPANY’S MANAGEMENT HAS TO ENSURE ABIDING BY ALL THE COVID-19 RELATED GUIDELINES

ISSUED BY THE AUTHORITIES. HENCE, THE MEMBERS OF THE COMPANY WHO WOULD LIKE TO ATTEND THE ANNUAL GENERAL MEETING (AGM) IN-PERSON ARE REQUIRED TO INFORM THE COMPANY AT LEAST 7 DAYS BEFORE THE SCHEDULED DATE OF THE AGM SO AS TO ENABLE THE COMPANY TO MAKE ALL NECESSARY ARRANGEMENTS IN ORDER TO STRICTLY FOLLOW THE SOCIAL DISTANCING NORMS AND ALL OTHER COVID-19 RELATED PROTOCOL REQUIREMENTS.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING (AGM) IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE ON A SHOW OF HANDS AS WELL AS ON A POLL INSTEAD OF HERSELF AND A PROXY MUST BE A MEMBER OF THE COMPANY. NON-MEMBER CAN NOT BE APPOINTED AS A PROXY. THE INSTRUMENT APPOINTING PROXY IN ORDER TO BE EFFECTIVE MUST BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY, DULY COMPLETED, STAMPED AND SIGNED, AT LEAST 48 HOURS BEFORE THE SCHEDULED TIME OF THE MEETING. A BLANK PROXY FORM IS ENCLOSED HEREWITH.

3. Members/Proxies are requested to bring attendance slips sent herewith duly filled in, for attending the meeting. Members are requested to bring their copy of the Annual Report to the Annual General Meeting as the same will not be distributed at Annual General Meeting.

4. Every member will have only one vote (on show of hands as well as on poll) irrespective of her shareholding or patronage in the Company subject to the condition that a member has fulfilled a basic condition for voting i.e., she has poured milk for at least 200 days totaling to at least 500 liters in a previous financial year 2020-21.

5. The members of the Company have at their Seventh Annual General Meeting approved and adopted the revised criteria for categorizing members into different classes (Class A, B and C) based on the members’ participation in business (i.e., patronage criteria).

6. Class Categorization of members and their entitlement to voting rights: At the end of financial year (2020-21) on 31.03.2021, there were total 94,549 members on the roll

(Register of Members) of the Company, whose class categorization, based on their patronage during FY 2020-21, and the voting right status are given as under: -a) Based on the analysis of data, fulfillment and non-fulfillment of patronage criteria by the members

during F.Y. 2020-21 and their member status as on date of notice, there were 4,143 members in Class-A, 10,621 members in Class-B and 30,085 members in Class-C (aggregating to 44,849 members), who apart from fulfilling the basic condition for voting also fulfilled all the criteria of patronage of their respective class, and therefore, they are entitled to vote on all the resolutions set at Item nos. 1 to 10 of the notice including voting on election of Director of a particular class to which they belong.

[Note: A member of one class (Class A, Class B, or Class C) can vote on appointment of director belonging to her own class only and cannot vote on appointment of director of other Class (vide Article 9.5 of the Articles of Association)].

b) There were 6,835 members, who have fulfilled basic condition for voting (i.e., pouring of milk for at least 200 days totaling to at least 500 liters in a previous financial year) but have not fulfilled one or more of the patronage criteria of their respective class during F.Y. 2020-21. Hence, they do not qualify to be in any of the three classes for the purpose of categorizing members into different classes, and consequently, they are not entitled to vote on class based election of Directors (at Item nos. 3, 4, 5 and 6 of the notice), however, they can vote on other resolutions at Item nos. 1, 2, 7, 8, 9 & 10 of the notice.

c) There were 41,903 members who did not pour milk for at least 200 days and / or at least 500 liters in a previous financial year (2020-21), and hence, they lost their voting right and are not eligible to vote on any resolution to be moved at this Annual General Meeting. Out of the total 94,549 members, 962 members’ membership have been cancelled post 31st March 2021. Hence, they are not eligible to attend the AGM.

d) After the closure of the financial year 2020-21 and till the date of this notice, 8,328 new members were admitted, who will not be entitled to dividend (if declared) for FY 2020-21 as well as voting right at ensuing AGM. However, they can attend the AGM.

48

e) A milk producer, who was a member as on 31st March 2021, but whose membership has been cancelled after 31stMarch, 2021, will be entitled to dividend for FY 2020-21, but shall not be entitled to any share/membership related rights, entitlement or benefit (including attendance & voting at AGM) post such cancellation as she has ceased to be a member of the Company.

f) Similarly, a new member, who was admitted as member of the Company post 31st March 2021 will not be entitled to dividend for F.Y. 2020-21 as well as voting right at ensuing AGM.

g) MPP (Milk Pooling Point) wise list of aforesaid members are available at AGM Venue.h) The Company will employ such method and arrangement to distinguish members of different

classes for facilitating voting as is convenient, which shall be appraised to the members at the meeting.

7. The following documents are enclosed with this notice:(i) The names of candidates for election to the office of Director including a statement of

qualifications in respect of each candidate; (ii) Minutes of the previous AGM held on 28th December, 2020. (iii) The audited Balance Sheet as at 31st March, 2021 and Profit and Loss Account for the financial

year ended 31stMarch 2021 together with Reports of the Board of Directors and Auditors thereon are annexed herewith.

(iv) Budget for FY-2021-22. 8. The Explanatory Statement setting out all material facts in respect of Item no. 9 & 10 of the

accompanying notice is attached herewith.9. The register of Directors’ shareholding maintained as per the provisions of the Companies Act, 2013,

Register of Proxies and details of member’s shareholding will be available for inspection by the Members at Annual General Meeting.

10. Limited Return (Dividend) for the period ended on 31st March 2021 will be paid to those Members; whose names appear on the Register of Members as on 31st March 2021.

11. Documents referred to in the accompanying notice are open for inspection at the Registered Office of the Company during office hours on all working days before the date of Annual General Meeting between 11.00 A.M to 3.00 P.M.

12. The member requiring information on accounts or operation of the Company or indenting any query are requested to forward the same to the Company Secretary, at least 7 days prior to the date of meeting, so that the required information can be made available at the meeting to the extent possible.

13. The Members are requested to intimate immediately any change in their registered address along with PIN Code and Mobile number to the Company.

14. The Members who did not fill Nomination form, may collect it from registered office of the Company and deposit there for appointing Nominee.

15. Members are requested to bring their ID cards at AGM venue for their identification purpose.16. For the speedy delivery of the Annual Report or other document(s) to the member(s) of

Company, Member(s) are requested to get register their e-mail ID / address, if any, with the Company. An e-mail registration form is available on the website of the Company i.e. www.shreejamilk.com under the “Member Corner”. Member may download it and after filling and signing it, send the same to Chief Executive/Company Secretary of the Company. The e-mail registration form is also enclosed in the Annual report, you may fill it and send the same to the Company for registering your mail id.

49

STATEMENT OF QUALIFICATION IN RESPECT OF THE CANDIDATES TO BE ELECTED AS DIRECTOR UNDER SECTION 378ZA (4) (c) OF THE COMPANIES ACT 2013Item No. 3, 4, 5, 6i. Smt. Usha Avula is 12th pass. She is engaged in Agriculture and Dairy Farming.ii. Smt. Pushpalatha Kaligari is 12th pass. She is engaged in Agriculture and Dairy Farming.iii. Smt. Kanemma Pakala is Graduate in Commerce & Education (B.com & B. Ed). She is engaged in

Agriculture and Dairy Farming.iv. Smt. Sreedevi Kuntapalli is Graduate in Commerce (B.com) & Diploma in Education

(D. Ed). She is engaged in Agriculture and Dairy Farming.

EXPLANATORY STATEMENT

Item no. 9:

The members of the Company and others in our area of operations have requested that the Company shall arrange to provide certain daily need items like edible oils, fruits, vegetables etc. at a competitive price by sourcing the same in bulk. Considering the objects of the Company to promote the principles of mutuality and techniques of mutual assistance amongst the Members and further, to be true to the Mission, the Company would like to undertake such activities which will meet the requirements of the Members and others in the area of operations of the Company. In order to pursue such activities in the future, it is being proposed to add the following objective under its main objects.

Further, amendment in the Memorandum of Association may be amended and adopted by the shareholders by passing a Special Resolution at a General Meeting of the Company.

None of the Directors/Officers of the Company or their relatives is, in any way, interested or concerned in the resolution.

The Board of Directors recommends the Special Resolution set out in Item no. 09 of the accompanying notice for the approval of the shareholders.

Item no. 10:

Provisions of Producer Company has been incorporated through Companies (Amendment) Act, 2020 in Chapter XXIA (‘the Chapter’) of the Companies Act, 2013. The provisions under the Chapter are applicable from 11th February, 2021. So the provisions of part IX-A of the Companies Act, 1956 is no longer applicable and the same is repealed with the provisions provided under the Chapter XXIA of the Companies Act, 2013.

In view of the above, all the reference relevant to the Companies Act, 1956 made under the Article of Association shall be replaced with the respective section/provisions of Companies Act, 2013.

None of the Directors/Officers of the Company or their relatives is, in any way, interested or concerned in the resolution.

The Board of Directors recommends the Special Resolution set out in Item no. 10 of the accompanying notice for the approval of the members.

By order of the Board of Directors

N Amarendra BabuCompany Secretary


RegisteredOffice:Shreeja Mahila Milk Producer Company Limited3rd& 4th Floors, Bachala TowersPlot No. 29 & 30, S.G.S. Arts College RoadNew Indira Nagar, Tirupati – 517501 Andhra Pradesh

50

FORM FOR UPDATION / REGISTRATION OF E-MAIL ADDRESS

To

Chief Executive/Company Secretary,Shreeja Mahila Milk Producer Company Limited,3rd & 4th Floors, Bachala Towers, Plot No. 29 & 30,S.G.S Arts College Road, New Indira Nagar,Tirupati-517501.

Subject: Request to register/update my e-mail ID / address for sending of Notices, Annual Reports & other information(s)/ documents of Company through Electronic Mode

Dear Sir,

I hereby update/register my e-mail address provided below for receiving the Notices, Annual Reports and other information(s)/ documents from the Company through electronic mode:-

*E-mail ID/Address: ___________________________________________________________________________

*Name of the Member: ________________________________________________________________________

*Registered Address: __________________________________________________________________________

*Folio No.:___________________________#Form No.___________________________

Contact Nos.:

*Mobile: ___________________________________________________________________

#Land Line (with STD Code): ______________________________________________

# Optional

I further declare that the aforesaid e-mail ID / address belong to me and has been exclusively used by me and no person except me has access to aforesaid e-mail ID / address.

I will also keep the Company informed as and when there is any change in the e-mail address or mobile number.

__________________________

(Signature of Member)

Date:_____________________

Notes:-

1. The Notices, Annual Reports and other documents shall be sent in electronic mode to those Members who have registered their e-mail addresses with the Company and in physical mode to the remaining Members.

2. This Form can also be downloaded from the Company’s website www. shreejamilk.com under the section ‘Member Corner’.

51

SHREEJA MAHILA MILK PRODUCER COMPANY LIMITED(CIN – U01403AP2014PTC094771)

Regd.Office:3rd&4thFloors,BachalaTowers,PlotNo.29&30,S.G.S.ArtsCollegeRoad,NewIndiraNagar, Tirupati - 517501, A.P.

ATTENDANCE SLIP

Folio No:

Member Code:

I hereby record my presence at the 8th Annual General Meeting of the Shreeja Mahila Milk Producer Company Limited held on Thursday, the 30th day of September 2021 at 9.00 A.M., 1st Floor, Bachala Towers, Plot No. 29 & 30, S.G.S Arts College Road, New Indira Nagar, Tirupati – 517501, Andhra Pradesh.

Name of the Shareholder(s) …………………………………………………………………

Name of Proxy ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

(In case of proxy attending the meeting)

Signature of the Shareholder/Proxy*

*strike out whichever is not applicable

SHREEJA MAHILA MILK PRODUCER COMPANY LIMITED(CIN – U01403AP2014PTC094771)

Regd.Office:3rd&4thFloors,BachalaTowers,PlotNo.29&30,S.G.S.ArtsCollegeRoad,NewIndiraNagar, Tirupati - 517501, A.P.

PROXY FORM

Folio No:

Member Code:

I......................................................................................................................,residing at...................................................................................................................... being member of Shreeja Mahila Milk Producer Company Limited, hereby appoint Ms./Mrs.........................................................................................................................having Folio no.......................................................................................................................residing at......................................................................................................................or failing her Ms./Mrs..................................................................................................................having Folio no.......................................................................................................................residing at............................................................................................................................................................................................................................................ as my proxy to vote for me and on or my behalf at the 8th Annual General Meeting of the Company to be held on Thursday, the 30th day of September 2021 at 1st Floor, Bachala Towers, Plot No. 29 & 30, S.G.S Arts College Road, New Indira Nagar, Tirupati – 517501, Andhra Pradesh or at any adjournment thereof.

Signed this ………………. day of …………………………….2021

Note: The proxy form must be returned so as to reach the Registered Office of the Company not less than 48 hours before the time for holding the aforesaid meeting. Proxy need to be a member of the Company

Affix Rs.1.

Revenue Stamp