The Kerala State Cooperative Consumers’ Federation has emerged from the red and registered a working profit of ₹64.78 crore in 2016-17, Minister for Cooperation Kadakampally Surendran has said.
Mr. Surendran told reporters here on Tuesday that the federation had recorded a net loss of ₹419 crore and was stooping into a crisis. The administrative committee comprising M. Mehboob, K.V. Krishnan, P.M. Ismail and managing director M. Ramanunni had been striving hard for the past eight months for achieving the turnaround.
By streamlining the functioning of the federation, the committee was able to bring down the rate of NPAs, interest arrears due to banks, and payments pending to various suppliers.
After clearing the loan arrears of ₹5 crore due to the National Cooperative Development Corporation, the federation could record a net profit of ₹59.78 crore. This is the outcome of the fiscal discipline enforced by the committee. It has succeeded in collecting incentives due to the federation from various companies, including IMFL companies. Loans have been restructured and this has helped to bring down the interest rates.
Excessive administrative expenses have been slashed. A centralised purchasing system has been put in place and e-tender too has been adopted. Offices and warehouses that were found to be the main loss incurring sources have been closed. Now the federation was providing essentials at a price 20% less than the market prices. It has been decided to set up student markets and also expand the Neethi and introduce online trading in Triveni Stores, he said.