1 RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS IN THE
NORMAL COURSE OF BUSINESS
DURING THE YEAR ENDED DECEMBER 31, 2008.
(i) ENTERPRISES WHERE CONTROL EXISTS :
(a) Holding Company -
Reckitt Benckiser pic, UK
(b) Subsidiary Company -
Reckitt Piramal Private Limited
(c) Fellow Subsidiaries -
a) Lancaster Square Holdings SL
b) Reckitt Benckiser Corporate Services Ltd., UK
c) Reckitt & Colman (Overseas) Ltd., UK
d) Reckitt Benckiser Healthcare (UK) Ltd.
e) Reckitt Benckiser (Bangladesh) Ltd.
f) Reckitt Benckiser (Lanka) Ltd.
g) Reckitt Benckiser Inc, USA
h) Reckitt Benckiser Italia SPA
i) Reckitt Benckiser NV, Netherland
j) PT. Reckitt Benckiser Indonesia
k) Benckiser Producktions GmbH Ladenburg, Germany
I) Reckitt Benckiser (Singapore) Pte Ltd.
m) Reckitt Benckiser Brazil Ltd.
n) Reckitt Benckiser France SAS
o) Reckitt Benckiser Household Products (China) Co. Ltd.
p) Reckitt Benckiser Arabia, UAE.
q) Reckitt Benckiser Hong Kong Ltd.
r) Reckitt Benckiser (Thailand) Ltd.
s) Oxy Reckitt Benckiser Ltd.
t) Reckitt Benckiser Nigeria Ltd.
u) Reckitt Benckiser Healthcare Mfg. (Thailand) Ltd.
v) Reckitt Benckiser Pakistan Ltd.
(ii) OTHER RELATED PARTIES WITH WHOM THE COMPANY HA!) TRANSACTIONS:
(a) Key Management Personnel:
i) Mr. Chander Mohan Sethi Chairman & Managing Director
ii) Mr. Manish Dawar Executive Director, CFO & Company Secretary
iii) Mr. Sreenivas Rao Executive Director (w.e.f December 17, 2008)
(b) Employees Benefit Plans where there is significant influence : i)
Reckitt & Colman of India Ltd Staff Provident Fund
ii) Reckitt Benckiser (India) Limited Executive Staff Pension Fund
iii) Reckitt Benckiser (India) Limited Senior Supervisory Staff &
Personal Assistants Pension Fund
iv) Reckitt & Colman of India Ltd Excluded Employees Provident Fund
v) Reckitt Benckiser (India) Gratuity Fund
vi) Reckitt Benckiser India Employees Superannuation Fund
1. Segments have been identified in line with the Accounting Standard
on Segment Reporting (AS-17), taking into account the organisation
structure as well as the differential risks and returns of these
2. Household segment includes pest control, lavatory care, floor care,
air care, shoe care, dishwashing and fabric care (pre and post wash).
Health & personal care includes antiseptics, analgesics, ointments,
bulk drugs, soap, talc, depilatories etc. Food represents barley
3 Segment revenue, results and total assets and liabilities figures
include the respective amounts identifiable to each of the segments.
Other unallocated expenditure includes expenses incurred on common
services|provided to the segments which are not directly identifiable
to the individual segments as well as expenses incurred at corporate
level which relate to the company as a whole. Assets and liabilities
figures are as at December 31, 2008. Unallocated assets mainly relate
to fixed assets at corporate & regional offices. Unallocated capital
expenditure and depreciation represent common assets, mainly computer
software, hardware and corporate assets and depreciation thereon.
As at As at
Rs. Lakhs Rs. Lakhs
2 (i) Estimated amount
of commitments (net of advances)
on capital account not provided for 357.49 686.88
(ii) Contingent liabilities in
respect of demands against the
Companynot admitted as debts
regarding excise duty pertaining
to disputesrelating to classification
of products for assessable value etc. 2,381.37 2,149.52
(a) Provision for central excise pertaining to disputed demands arising
from litigations pending with the excise authorities mainly arising out
of classification of products, assessable value, shortage etc.
(b) Provision for sales tax and VAT pertains to disputed demands
arising from litigations with regard to the classification of products.
(c) Future cash outflows in respect of the above litigations are
determinable only on receipt of judgments/decisions pending with
(iii) The company is carrying provision of Rs.250.00 lakhs (Previous
year Rs.458.28 lakhs) which has been disclosed under Provision for
contingencies. During the year, an amount of Rs.208.28 lakhs has been
3 Provision for taxation includes Rs.2,768.42 lakhs (Previous year
Rs.2,480.00 lakhs) being estimated provision on taxable income for the
period April 1, 2008 to December 31,2008. The ultimate tax liablity of
the company for the year April 1,2008 to December 31, 2008 to be
considered for the assessment year 2009 - 2010 will be determined on
the basis of taxable income of the company for the year April 1, 2008
to March 31, 2009.
4 Miscellaneous income (Schedule 12) includes Rs.1,184.00 lakhs
(Previous year Rs 2,340.69 lakhs), on account of old liabilities
* In addition to licensed capacity, the company also has a registered
capacity of 190 MT for bulk drugs (2003 -190 MT) and 6.67 MT for
formulations - Tablets (2003 - 6.67 MT)
(a) Installed capacities have been certified by the companys technical
(b) Actual production is before any adjustment for samples etc.
(c) Installed capacity for products has been calculated on three shift
5 EMPLOYEE BENEFITS
The Company has classified the various benefits provided to employees
as under -
I Defined Contribution Plans
Superannuation: Reckitt Benckiser India Employees Superannuation Fund
II State Plans
a. Employers Contribution to Employees State Insurance
b. Employers Contribution to Employees Pension Scheme 1995
c. Employers Contribution to Regional Provident Fund
(C) With respect to Pension, Leave Encashment and Workers Retirement
Plan, the company has a marginal over funding as per the actuarial
valuation carried out at December 2007 which was not recognised in the
Profit & Loss Account. Since no asset/liability or income/expense has
been recognised in the Balance Sheet and Profit & Loss Account of the
company for the year 2007 the applicable disclosures are being made
6 During the year, the company received a capital subsidy for Rs.
30 lakhs from Directorate of Industries, Himachal Pradesh under the
Central Capital Investment Subsidy Scheme 2003 and has hypothecated its
assets to that extent.
7 During the year, the company received an order from the Income
Tax Authorities to adjust Dividend Distribution Tax (DDT) amounting to
Rs. 2,072.47 lakhs against future liability of DDT, the same has been
recognised in the books of account during the year.
8 Previous year figures have been rearranged/restated where
necessary to confirm to current years classification.