1. The standalone unaudited financial results for the year ended and quarter ended March 31,2009 were reviewed by the audit committee at its meeting held on April 22, 2009 and approved by the Board of Directors of Marico Limited ("the Company") at its meeting held on April 22, 2009. The financial results of the company for the year ended and quarter ended March 31, 2009 have been subjected to limited review by the statutory auditors of the company.

2. Pursuant to the Institute of Chartered Accountants of India’s (ICAI) Announcement "Accounting for Derivatives" encouraging the early adoption of Accounting Standard (AS) 30 "Financial Instruments: Recognition and Measurement", the Company has decided on early adoption of AS-30 to the extent it does not conflict with existing mandatory Accounting Standards (´Standards´) and other authoritative pronouncements, companies law and other regulatory requirements. In accordance with the said Standard, during the year, in respect of derivative instruments and foreign currency loans which qualify for hedge accounting, the net unrealized loss aggregating Rs 625.77 lacs (including Rs 113.19 lacs for the quarter ended March 31, 2009) has been accounted for as a hedging reserve to be recognized in the profit and loss account when the underlying transaction or forecast revenue arises, as against the earlier practice of recognizing the same in the Profit and Loss Account.

3. The Company had, in February 2003, acquired the spa products business under the brand "Sundari" through the acquisition of the controlling interest in Sundari LLC ("Sundari"), a company domiciled in the United States. Over the years the Company increased its shareholding and in October 2007 made Sundari a wholly owned subsidiary. The Company had been working upon making improvements in the business model and the business had shown some positive signs of recovery. However, during the year under review, the economic ambience turned for the worse across the globe creating uncertainties, more so in the USA. The Company has therefore decided to focus on its prioritized geographies of Asia and Africa and consequently has decided to divest its stake in Sundari. It has accordingly entered into documentation with a US based company that envisages the following:

a. Marico to sell its interests in Sundari LLC at a consideration which is based on a valuation report from an independent agency.

b. On or before the date of the actual sale of its interests in Sundari LLC, Marico to render Sundari free of all liabilities (including the amounts advanced by Marico).

Accordingly, Marico has made an application to the Reserve Bank of India (RBI) for its approval for write off of the loans made to Sundari LLC & the accrued interest thereon, aggregating Rs. 5118.55 lacs and for sale of its interests in Sundari LLC. The completion of the transaction awaits regulatory approvals.

The Company had during FY 08 made a partial provision of Rs. 936.72 lacs towards permanent diminution in value of investment and non-recoverable loans & accrued interest. The Company has now made a further provision of Rs. 4786.48 lacs net of the purchase consideration receivable for the divestment, which has been shown as an exceptional item in the financial results for Q4 FY 09.

Marico has received legal advice based on which the loss on account of the non-recoverable advances and interest accrued thereon has been treated as Business Loss for the purposes of computation of income tax provision for FY09. The tax provision for the current quarter is adjusted for the consequential tax effect of the aforementioned provisions.

4. During the previous year, the Company changed its method of accounting depreciation on factory building from Straight Line basis to Written Down Value basis. As a result of this change, additional depreciation of Rs. 406 lacs in respect of earlier years and Rs. 32 lacs for the year ended March 31, 2008 and Rs. 8 lacs for the quarter ended March 31, 2008 was charged to the Profit and Loss account and included under "Depreciation, amortisation and impairment" of the previous periods. Consequently, the figures for current quarter and year ended March 31, 2009 are not comparable with the corresponding previous period figures.

5. Exceptional items for the quarter and year ended March 31, 2008 comprise of:

a. Profit of Rs 1060.53 Lacs on sale of Sil business on slump sale basis, including manufacturing unit at Saswad.

b. provision of Rs. 936.72 Lacs towards diminution in the value of Marico’s Investment / advances in its wholly owned subsidiary (WOS) Sundari LLC (Sundari).

6. The Company has only one reportable segment in terms of Accounting Standard 17 "Segment Reporting" mandated by Rule 3 of the Companies (Accounting Standards) Rules, 2006, which is manufacturing and sale of consumer products.

7. At its meeting held on April 22, 2009, the Board of Directors of Marico Limited declared a second interim dividend of 35.5% (Re. 0.355 per share of Re. 1 each) on equity capital of Rs. 6,090 Lacs. The dividend shall be paid to the shareholders whose names appear in the Register of Members as on April 28, 2009.

8. Previous quarter / year figures have been regrouped / restated wherever necessary.

Harsh C. Mariwala
Chairman & Managing Director