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Notes to Accounts of Eveready Industries India Ltd.

Mar 31, 2017

Fair value of the Company''s Investment property

The Company has identified its unused freehold land and building at Plot No. 8, Indus Park, Moula-Ali, Hyderabad, as investment property. The fair value of such property at Hyderabad has been derived using the market comparable rate of the surrounding area as at March 31, 2017, March 31, 2016 and April 1, 2015 on the basis of a valuation carried out as on the respective dates by an independent valuer not related to the Company. The independent valuer is Government registered valuer and have appropriate qualifications and experience in the valuation of properties.

(ii) Terms / rights attached to equity shares:

The Company has one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.

1. Novener SAS

The Company acquired a controlling stake in Novener SAS from July 2009, a rechargeable battery conglomerate whose products were marketed under the brand name of "Uniross". As at March 31, 2017, the Company has an investment of Rs. Nil (As at March 31, 2016: Rs.4,646.04 Lakhs and as at April 1, 2015: Rs.4,646.04 Lakhs) and advances aggregating to Rs. Nil (as at March 31, 2016: Rs.2,973.27 Lakhs and as at April 1, 2015: Rs.2,973.27 Lakhs). The Company''s total exposure towards investments and advances of Rs.7,619.31 Lakhs was fully provided for as at March 31, 2016 (as at April 1, 2015: Rs.7,619.31 Lakhs). Novener SAS and all the key entities of the Uniross group were liquidated, as ordered by French Court judgements. The Company sought RBI approval for writing off the investment and advances as mentioned above during the previous year ended March 31, 2016. RBI approval was received during the year for the same and hence accounting adjustments have been made.

2. Particulars of Loans, guarantees or investments covered under Section 186(4) of the Companies Act, 2013

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans repayable on demand to Babcock Borsig Ltd and McNally Bharat Ltd outstanding at the year end was Rs.688.37 Lakhs and Rs. Nil respectively and maximum amount outstanding during the year was Rs.6,114.04 Lakhs and Rs.3,032.22 Lakhs respectively, for their business purposes.

Guarantees - Rs. Nil

Investment - Rs. Nil

3. Employee benefit plans

3.1.a Defined contribution plans

The Company makes Provident Fund and Pension Fund contributions to defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.331.93 Lakhs (for the year ended March 31, 2016 Rs.289.84 Lakhs) for Provident Fund contributions and Rs.531.93 Lakhs (for the year ended March 31, 2016 Rs.498.58 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.1.b The Company offers the following employee benefit schemes to its employees:

Defined benefit plans

i. Gratuity

ii. Pension

Other long term employee benefits

i. Post-employment medical benefits

ii. Compensated absences

The following table sets out the funded/unfunded status of the defined benefit plans and other long term benefits and the amount recognized in the financial statements:

4. Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products and small home appliances which come under a single business segment known as Consumer Goods. The financial performance relating to this single business segment is evaluated regularly by the Managing Director and Chief Financial Officer (Chief Operating Decision Makers). Sale outside India is below the reportable threshold limit, thus geographical segment information is not given.

5. Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activities are eradication of hunger, promoting education, gender equality, empowerment of women and promoting sports- National & Olympic. The expenditure incurred (Refer Note 30) during the year on these activities are as specified in schedule VII on the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year Rs.92.67 Lakhs

(b) Amount spent during the year on:

6. Financial Instruments

6.1 Capital management

The Company''s capital management objective is to maintain an optimal debt-equity structure so as to reduce the cost of capital, thereby enhancing returns to shareholders. The Company also has a policy of making judicious use of various available debt instruments within its overall working capital drawing limit. This interest arbitrage helps the Company to contain / reduce the cost of capital.

6.2 Financial risk management objectives

The Company endeavours to manage the financial risks related to it''s operations through specified policies, which deals with various market risks (foreign currency exchange risk, interest rate risks and commodity price risks), credit risks and liquidity risks. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments like foreign exchange forward contracts, commodity future and option contracts, maintaining proper mix between fixed and floating rate of borrowings are undertaken to hedge the various financial risks as per guidelines set in those policies. Credit risk management is done through managing credit limits and transactions through letters of credit. Liquidity risk is managed through availability of committed credit lines and borrowing facilities.

6.3 Market risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and commodity prices in international markets. The Company enters into foreign exchange forward contracts and commodities future contracts to manage it''s market risks.

6.4 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Exchange rate exposures are managed within the approved policy utilizing forward foreign exchange contracts

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of reporting period are as follows:

7. Foreign currency sensitivity analysis

The Company is mainly exposed to the currency US Dollar, Japanese Yen and Hong Kong Dollar. This sensitivity analysis mentioned in the below table has been based on the composition of the Company''s financial assets and liabilities exposed to foreign currency as at year end. A positive number below indicates an increase in profit before tax where the INR (?) strengthens 5% against the relevant currency. For a 5% weakening of the INR (?) against the relevant currency, there would be a comparable impact on the profit and the balances below would be negative.

8. Forward Foreign Exchange Contract

It is the policy of the Company to enter into forward foreign exchange contracts to cover foreign currency payments for known liabilities, all foreign currency loans and receipts, all of which covers approximately 40% to 50% of the exposure generated.

The following table details the forward foreign exchange contracts outstanding at the end of the reporting period:

The line-items in the balance sheet that includes the above hedging instruments are "Other financial assets" and "Other financial liabilities". The Company has entered into forward foreign exchange contracts (for terms not exceeding 6 months) to hedge the exchange rate risk arising from the outstanding payables and receivables.

8.1 Interest rate risk management

The Company is exposed to interest rate risk because it borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings contracts.

9. Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments (borrowings) at the end of the reporting period. For liabilities with floating rate, the analysis is prepared considering average amount outstanding at the end of each month. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Company''s:

- profit before tax for the year ended March 31, 2017 would decrease/increase by Rs.90.14 lakhs (for the year ended March 31, 2016: decrease/ increase by Rs.180.85 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

9.1 Commodity price risk management

The Company is exposed to commodity price risk, mainly in respect of Zinc, which is a key raw material in the manufacture of batteries. The price risk is linked to fluctuations in London Metal Exchange (LME). The Company manages the price risk by entering into derivative transactions by use of futures and options upto 50% of the total exposure generated.

The carrying amounts of the Company''s future contracts monetary assets and monetary liabilities at the end of reporting period are as follows:

10. Commodity price sensitivity analysis

The sensitivity analysis is determined based on outstanding future and option positions at the end of each reporting period. A $100 increase or decrease is used when reporting Zinc price risk to key management personnel and represents management''s assessment of the reasonably possible change in Zinc price on LME.

If Zinc price had been $100 higher/lower and all other variables were held constant, the Company''s:

- profit before tax for the year ended March 31, 2017 would decrease/increase by Rs.19.46 lakhs (for the year ended March 31, 2016: decrease/ increase by Rs.69.55 Lakhs)

11. Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counter parties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure of its counter parties are continuously monitored.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased.

Concentration of credit risk to any counter party did not exceed 5% of gross monetary assets at any time during the year.

I n addition, the Company is exposed to credit risk in relation to financial guarantees given to banks. The Company''s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at March 31, 2017, an amount of Rs.3,242.75 lakhs (as at March 31, 2016: Rs.3,312.63 lakhs and as at April 1, 2015; Rs.3,125.00 lakhs) and other bank guarantees amounts to Rs.593.78 lakhs as at March 31, 2017 (as at March 31, 2016: Rs.732.15 lakhs and as at April 1, 2015; Rs.208.94 lakhs) has been considered as contingent liabilities (see note 32.1). These financial guarantees have been issued to banks under the supply agreements entered into with certain vendors.

12. Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its financial assets

12.1 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The below table sets out details of additional undrawn facilities that the Company has at its disposal to further reduce liquidity risk.

12.2 Fair value measurements

This note provides information about how the Company determines fair values of various financial assets and financial liabilities

13. Fair value of the Company''s financial assets and liabilities that are measured at fair value on a recurring basis

Some of the Company''s financial assets and liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and liabilities are determined:

14. Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 30, 2017.


Mar 31, 2016

(i) Terms / rights attached to Equity Shares:

The company has one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.

1. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS (CONTD.) DISCLOSURES UNDER ACCOUNTING STANDARDS

1.1 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at March 31, 2016. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments.

Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

Outstanding forward exchange contracts entered into by the Company as on March 31, 2016

1.2 Note on Subsidiary Novener SAS

The Company acquired a controlling stake in Novener SAS in July 2009, a rechargeable battery conglomerate whose products are marketed under the brand name of "Uniross". As at March 31, 2016, the Company has an investment of Rs. 4,646.04 Lakhs (March 31, 2015 : Rs. 4,646.04 Lakhs) and has advanced amounts aggregating to Rs. 2,973.27 Lakhs (March 31, 2015 : Rs. 2,973.27 Lakhs). The Company''s total exposure towards investments and advances of Rs. 7,619.31 Lakhs stand fully provided for as at March 31, 2016 (March 31, 2015 : Rs. 7,619.31 Lakhs). The investment in Novener SAS is now valued at Rs. 1 in the financial statements of the company. Novener SAS and all the key entities of the Uniross group are now liquidated, as ordered by French Court judgements. The Company has therefore approached RBI for writing off the investment and advances as mentioned above and the same is awaited.

1.3 Amortisation of brand "Eveready"

Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

1.4 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

Interest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans repayable on demand to Babcock Borsig Ltd. - Rs. 3552.84 Lakhs at the year end and maximum amount outstanding during the year Rs. 5582.03 Lakhs, for their business purposes.

Guarantees - Rs. Nil

Investment - Rs. Nil

DISCLOSURES UNDER ACCOUNTING STANDARDS

1.5 Employee benefit plans

1.5.a Defined contribution plans

The Company makes Provident Fund and Pension Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 289.84 Lakhs (Year ended March 31 2015 Rs. 260.75 Lakhs) for Provident Fund contributions and Rs. 498.58 Lakhs (Year ended March 31, 2015 Rs. 363.58 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

1.5.b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Post-employment medical benefits

iii. Pension

iv. Leave Encashment

2. Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products which come under a single business segment known as Fast Moving Consumer Goods. Sale outside India is below the reportable threshold limit, thus geographical segment information is not given.

3. Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activiteis are eradication of hunger, promoting education,gender equality,empowerment of women and promoting sports- National & Olympic. The expenditure incurred (Refer Note 23) during the year on these activities are as specified in schedule VII on the Companies Act, 2013.

(a) Gross amount required to be spent by the company during the year Rs. 47.96 Lakhs

(b) Amount spent during the year on:

4. Change in Accounting Policy

With effect from October 1, 2015, the Company has applied the principles of hedge accounting in accordance with AS-30 "Financial Instruments: Recognition and Measurement" with respect to derivatives contracts for hedging the price risk relating to purchases of Zinc. Accordingly, as at year ended March 31, 2016 the effective portion of changes in the fair value of such derivative contracts lying outstanding amounting to Rs. 172.94 Lakhs has been recognized in Cash Flow Hedge Reserve and ineffective portion of the same amounting to Rs. 47.06 Lakhs have been charged to the Statement of Profit and Loss and is included in Other Expenses (Note 23). As a result of the above mentioned change in the accounting policy, Statement of Profit and Loss for the year ended have been lower by Rs. 47.06 Lakhs and Reserve and Surplus as at March 31, 2016 is higher by Rs. 172.94 Lakhs.

5. Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2015

1 CORPORATE INFORMATION

Eveready Industries (Eveready) is in the business of manufacture and marketing of batteries, flashlights and packet tea under the brand name of "Eveready". The Company also distributes a wide range of electrical products. Eveready has its manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur and Kolkata and is supported by a sales and distribution network across the country.

2 ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS DISCLOSURES UNDER ACCOUNTING STANDARDS

Rs. Lakhs

Particulars As at March 31,2015 As at March 31, 2014

2.1 Contingent liabilities & commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debts:

- Excise & Customs * 1,769.70 1,769.70

- Sales tax 59.63 64.24

- Income tax :

The Company is in appeal in regard to assessments made 599.70 599.70

* Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

(b) Guarantees 3,333.94 236.68

(c) Others (Includes ESI, Property Tax, Water Tax etc.) 157.25 196.69

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for

- Tangible assets 874.57 1,947.26

- Intangible assets 143.01 -

2.2 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at March 31, 2015. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments.

Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

2.3 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II except as stated in note 2.6. Further, assets individually costing Rs. 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets. The details of previously applied depreciation method, rates / useful life are as follows:

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of Rs.1,780.91 Lakhs (net of deferred tax of Rs.192.63 Lakhs) against the opening deficit balance in the Statement of Profit and Loss under Reserves and Surplus.

The depreciation expense in the Statement of Profit and Loss for the year is lower by Rs. 541.06 Lakhs consequent to the change in the useful life of the assets.

2.4 Note on Subsidiary Novener SAS

The Company acquired a controlling stake in Novener SAS in July 2009, a rechargeable battery conglomerate whose products are marketed under the brand name of "Uniross". As at March 31, 2015, the Company has an investment of Rs. 4,646.04 Lakhs (March 31, 2014 : Rs. 4,646.04 Lakhs) and has advanced amounts aggregating to Rs. 2,973.27 Lakhs (March 31, 2014 : Rs. 2,973.27 Lakhs). The Company''s total exposure towards investments and advances of Rs. 7,619.31 Lakhs stand fully provided for as at March 31,2015 (March 31,2014 : Rs. 7,619.31 Lakhs). The investment in Novener SAS is now valued at Rs. 1 in the financial statements of the company. The Uniross Group which constitutes the operating entities under Novener SAS went under liquidation and are under external administration as ordered by a competent court in France. Novener SAS has also been put under liquidation during the year. The company has approached RBI for writing off the investment and advances as mentioned above. RBI has acknowledged the same and requested the company to approach for write off after the completion of liquidation which is pending.

2.5 Amortisation of brand "Eveready"

Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

2.6 Particulars of Loans, Guarantees or Investments covered under Section 186(4) of the Companies Act, 2013

I nterest bearing (which is not lower than prevailing yield of related Government Security close to the tenure of respective loans) loans repayable on demand to Babcock Borsig Ltd. - Rs. Nil at the year end and maximum amount outstanding during the year Rs. 3488 Lakhs, for their business purposes.

Guarantees - Nil

Investment - Rs. 125.82 Lakhs (1,25,81,775 shares of HKD 1 each) in Everspark Hong Kong Private Limited (wholly owned subsidiary)

2.7 Employee benefit plans

2.7. a Defined contribution plans

The Company makes Provident Fund and Pension Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 260.75 Lakhs (Year ended March 31, 2014Rs.234.34 Lakhs) for Provident Fund contributions and Rs. 363.58 (Year ended March 31, 2014 Rs. 197.56 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.7. b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Post-employment medical benefits

iii. Pension

iv. Leave Encashment

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

2.8 Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general electrical products which come under a single business segment known as Fast Moving Consumer Goods. Sale outside India is below the reportable threshold limit, thus geographical segment information is not given.

2.9 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activities are eradication of hunger, promoting education,gender equality,empowerment of women and promoting sports- National & Olympic. The expenditure incurred (Refer Note 23) during the year on these activities are as specified in schedule VII on the Companies Act, 2013.

2.10 Note for change in Dividend

The Board of Directors ("the Board") of the Company had approved the standalone financial statements of the Company for the financial year ending March 31, 2015 in their meeting held on May 11, 2015. In terms of the provisions of Section 123(1) of the Companies Act, 2013 that prevailed as on the date of the aforesaid Board meeting, as well as based on a legal opinion obtained by it, the Board, had recommended a final dividend of Rs. 2/- per share, excluding dividend distribution tax, out of the profits for the year ending March 31, 2015.

Subsequently, with the Companies (Amendment) Act, 2015 becoming effective from May 29, 2015, the Company is unable to declare the said recommended dividend as the Company has net accumulated losses of Rs. 96.63 Lakhs as at March 31, 2015 after setting of previous losses against the profits for the year ending March 31, 2015. The Board has therefore, in order to be compliant with the Companies (Amendment) Act, 2015, decided to revise the previously approved standalone financial statements solely insofar as it relates to the reversal of the previously proposed final dividend and dividend distribution tax thereon.

2.11 Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

1. Corporate Information

Eveready Industries (Eveready) is in the business of manufacture and marketing of batteries, flashlights and packet tea under the brand name of "Eveready". The Company also distributes a wide range of lighting products. Eveready has its manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur and Kolkata and is supported by a sales and distribution network across the country.

2.1 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at March 31, 2013. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments.

Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

The Company acquired a controlling stake in Novener SAS (Novener) in July 2009, a rechargeable battery conglomerate whose products are marketed under the brand name of "Uniross". As at March 31, 2013, the Company has an investment of Rs. 4,646.04 Lakhs and advances aggregating Rs. 2,973.27 Lakhs. During the year ended March 31, 2012, the Company had created a provision of Rs. 7,500 Lakhs towards (a) diminution in the carrying cost of its investment; (b) amount advanced till March 31, 2012 and (c) certain anticipated obligatory payment commitments and the charge for the same was included under "exceptional items".

By the year ended March 31, 2013, an additional charge ofRs. 119.31 Lakhs was incurred in respect of (c) above and same is shown under the head Other Expenses (Note No. 23)

2.2 Amortisation of brand "Eveready":

Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

2.3 Employee Benefit Plans

2.4.a Defined Contribution Plans

The Company makes Provident Fund and Pension Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 210.92 Lakhs (Year ended March 31, 2012 Rs. 212.37 Lakhs) for Provident Fund contributions and Rs. 209.37 Lakhs (Year ended March 31, 2012 Rs. 116.72 Lakhs) for Pension Fund contributions in the Statement of Prof t and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Companies Provident Fund is exempted under section 17 of Employees'' Provident Fund and Miscellanous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trust over statutory rate, accordingly contribution by the Company includes a sum of Rs. NIL (Year ended March 31, 2012 Rs. 37.29 Lakhs).

2.4.b Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees

i. Gratuity

li. Post-employment medical benefits

lii. Pension

iv. Leave Encashment

2.5 Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products which come under a single business segment known as Consumer Goods.

Geographical Segment

-Sales within India Rs. 1,05,054.47 Lakhs (2011-12 :Rs. 99,786.62 Lakhs) -Salesoutside India Rs. 3,902.69 Lakhs (2011-12: Rs.3,134.45 Lakhs)

2.6 Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1. Corporate Information

Eveready Industries (Eveready) is in the business of manufacture and marketing of batteries, flashlights and packet tea under the brand name of "Eveready". The Company also distributes a wide range of lighting products. Eveready has its manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur and Kolkata and is supported by a sales and distribution network across the country.

(i) Terms / rights attached to Equity Shares :

The company has one class of equity shares having a par value of Rs 5 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.

2.1 Contingent liabilities & commitments (to the extent not provided for) Rs Lakhs

Particulars As at March 31,2012 As at March 31,2011

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debts :

-Excise & Customs* 1,825.68 1,781.91

- Sales tax 91.14 133.56

- Income tax:

The Department is in appeal in regard to matters decided in favour of the Company - 71.59

The Company is in appeal in regard to assessments made 599.70 599.70

In respect of matters relating to erstwhile The Bishnauth Tea Company Limited (BTCL) [amalgamated with the Company effective April 1, 2000] - 125.48

"Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

(b) Others (Includes ESI, Property Tax, Water Taxetc.) 295.29 207.39

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances Rs 220.68 Lakhs; 2010-11 : Rs 467.43 Lakhs)

- Tangible assets 1,234.56 2,977.81

- Intangible assets 18.45 -

The Company acquired a controlling stake in Novener SAS (Novener) in July 2009,a rechargeable battery conglomerate whose products are marketed under the brand name of 'Uniross". As at March 31, 2012, the Company has an investment ofRs 4,646.04 Lakhs and has advanced amounts aggregating to Rs 2,279.51 Lakhs. Even though Novener's operations and organization was substantially restructured in 2010-11, its performance had been less than satisfactory primarily on account of the poor recessionary condition in Europe and other geographies where it has a strong market presence. Novener has registered loss for the current year as well, resulting in a complete erosion of its networth. The current global economic environment in the context of Novener's operations and the likelihood of it continuing to prevail for some more time may possibly make it even more difficult for Novener to achieve a complete turn around in the foreseeable future. Given this back drop and the threat that the Company may not be able to recover its investments, management has, as a measure of prudent accounting and governance, created a provision of Rs 7,500 Lakhs towards (a) diminution in the carrying cost of its investment; (b) amount advanced till the year end and (c) certain anticipated obligatory payment commitments and the charge for the same is included under 'exceptional items".

2.2 Central Government approval for Managerial Remuneration :

The Statement of Profit & Loss includes Managerial Remuneration amounting to Rs 358.56 Lakhs in respect of three executive directors of the Company. In the absence of profits for the financial year, the Company has made necessary application to the Central Government for treating the above asminimum remuneration and approval is awaited.

2.3 Amortisation of brand "Eveready"

Expert opinion was received whereby the working life of brand "Eveready' was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

2.4 Employee Benefit Plans

2.4.a Defined Contribution Plans

The Company makes Provident Fund and Pension Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs 212.37 Lakhs (Year ended March 31, 2011 Rs 265.85 Lakhs) for Provident Fund contributions and Rs 116.72 Lakhs (Year ended March 31, 2011 Rs 204.82 Lakhs) for Pension Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Companies Provident Fund is exempted under section 17 of Employees' Provident Fund and Miscellanous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trust over statutory rate, accordingly contribution by the Company includes sum of Rs 37.29 Lakhs ( March 31, 2011 Rs 68.00 Lakhs).

2.4.b Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees :

i. Gratuity

ii. Post-employment medical benefits

iii. Pension

iv. Leave Encashment

2.5 Segment information

The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products which come under a single business segment known as Consumer Goods.

Geographical Segment

- Sales with in India Rs 99,786.62 Lakhs (2010-11 : Rs 97,088.83 Lakhs)

- Sales outside India Rs 3,134.45 Lakhs (2010-11: Rs3,137.17 Lakhs)

Notes: (i) Figures in brackets relate to the previous year.

(ii) The expected time of resulting outflow is one to two years.

2.6 Previous year's figures

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1. Based on valuation made by professional valuers, Brand "Eveready" was valued at Rs. 66,000 Lakhs and was taken into the books in 2004-05.

2. Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

3. Brand included as Intangibles in Fixed Assets (Schedule 5) includes purchased brand [Gross block: Rs. 1,600 Lakhs (31.3.2010 : Rs. 1,600 Lakhs) and Net Block Rs. 480 Lakhs (31.3.2010:Rs. 640 Lakhs)].

4. Contingent Liabilities

4.1. Claims against the Company not acknowledged as debts

- Excise & Customs:Rs. 1,781.91 Lakhs (31.3.2010 :Rs. 1,773.55 Lakhs).*

- Sales tax:Rs. 133.56 Lakhs (31.3.2010 :Rs. 34.75 Lakhs).

Income tax

- The Department is in appeal in regard to matters decided in favour of the Company, the tax effect whereof is Rs. 71.59 Lakhs (31.3.2010 Rs. 71.59 Lakhs).

- The Company is in appeal in regard to assessments made, the tax effect whereof is Rs. 599.70 Lakhs (31.3.2010 : Rs. 599.70 Lakhs).

- In respect of matters relating to erstwhile The Bishnauth Tea Company Limited (BTCL) [amalgamated with the Company effective 1 April, 2000: Rs. 125.48 Lakhs (31.3.2010:Rs. 125.48 Lakhs)].

-Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

4.2 Others : Rs. 207.39 Lakhs (31.3.2010 : Rs. 207.39 Lakhs).

4.3 Bank Guarantees : Rs.824.70 Lakhs (31.3.2010 : Rs. 134.06 Lakhs).

5. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. 2,977.81 Lakhs (31.3.2010: Rs. 1,110.72 Lakhs).

6. The Proft and Loss Account includes net exchange Gain of Rs. 19.25 Lakhs (2009-10 : Loss of Rs. 47.27 Lakhs).

7. Loans and Advances (Schedule 10) include due from directors of the Company Rs. 19.70 Lakhs (31.3.2010 : Rs. 22.01 Lakhs). The maximum amount due from directors during the year wasRs. 22.01 Lakhs (2009-10 * 24.21 Lakhs).

8. Revenue Expenditure on Research & Development Rs. 217.52 Lakhs (2009-10 : Rs. 191.09 Lakhs) is included in Operating Expenses (Schedule 3).

9. Capital Work-in-Progress is inclusive of Capital Advances Rs. 712.01 Lakhs (31.3.2010 : Rs. 358.51 Lakhs).

10. Purchase of finished goods for resale appearing in Schedule 3 include Rs. 1,916.18 Lakhs (2009-10 : Rs. 228.69 Lakhs) towards purchase of 11.30 million pieces of Batteries (2009-10 : 9.04 million pieces), Rs. 5,964.11 Lakhs (2009-10 : Rs. 5,979.83 Lakhs) towards purchase of 16.59 million pieces of Flashlights (2009-10 :16.25 million pieces) and Rs. 6,095.75 Lakhs (2009-10 : Rs. 7,943.29 Lakhs) towards purchases of 37.62 million pieces of General Lights (2009-10 : 35.68 million pieces).

11. Earnings in Foreign Currency

Export of goods calculated on FOB basis : Rs. 1,728.18 Lakhs (2009-10 : Rs. 1,792.56 Lakhs).

12. Unpaid dividend represents dividend of earlier years on shares allotted to certain non-resident shareholders of the erstwhile The Bishnauth Tea Company Limited (BTCL) pursuant to the Scheme of Amalgamation of BTCL with the Company and whose present whereabouts are not known. The number of shares attributable to such dividend is 63,037 (2009-10 : 63,037) equity shares.

13. Related Party Disclosures List of Related Parties

a) Subsidiaries ¦ The Ownership, directly or indirectly through Subsidiary (ies)

NovenerSAS Idea Power Limited

UnirossSA Rechargeable Online SAS

Uniross Batteries SAS Celltex Limited

Industrial - Uniross Batteries (PTY) Ltd. Lognes Batteries Corp.

Uniross Batteries GmbH Uniross Batteries Corp.

Uniross Batteries Limited North American Battery Corp.

Zhongshan Uniross Industry Co. Limited Multiplier Industries Corp.

Everfast Rechargeables Limited Everspark Hong Kong Private Limited

b) Key Management Personnel

Executive Vice Chairman & Managing Director - Mr. D. Khaitan Wholetime Director - Mr. S. Saha

c) Relatives of Key Management Personnel with whom the Company had transactions during the year

Mrs. Neena Saha - Wife of Mr. S. Saha

Mr. A. Khaitan - Son of Mr. D. Khaitan

d) Entity having significant influence - Williamson Magor& Company Limited

14. Segment Reporting

(1) The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, insect repellants and other homecare products which come under a single business segment known as Fast Moving Consumer Goods (FMCG).

(2) Geographical Segment -

Sales within India Rs. 97,088.83 Lakhs (2009-10: ^98,117.57 Lakhs)

Sales outside India Rs. 3,137.17 Lakh (2009-10:Rs. 3,025.35 Lakhs)

15. Disclosure in accordance with Accounting Standard (AS) 29

The Company has made provisions towards Sales Tax, Excise and Others in view of the following and details of which are set out below:

(a) The Company has a present obligation as a result of past events;

(b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(c) A reliable estimate can be made of the amount of obligation.

16. Convertible Warrants

The Company had on 17 October, 2007, issued and allotted 45,00,000 Convertible Warrants on preferential basis which were convertible at the sole option of the warrant holders within a period of 18 months from the date of allotment. During the year, an amount of Rs. Nil (2009-10 : Rs. 261 Lakhs) representing the initial amount paid on the allotment of such warrants has been forfeited on the expiry of the time frame to opt for conversion. The amount forfeited has been transferred to Capital Reserve.

17. The company acquired a controlling stake in Novener SAS in July 2009 and as at March 31, 2011, has an investment of Rs. 4,110 lakhs and has advanced amounts aggregating to Rs. 1,731.73 lakhs. Novener SAS incurred a loss of Rs. 5,236.19 lakhs for the year ended March 31, 2011 and as at that date its accumulated losses of Rs. 6,724.48 lakhs is in excess of its networth. The operations and the organization structure of Novener SAS are currently in the process of restructuring of which substantial part has been completed during the year ended March 31, 2011 and that the benefits and results of such restructuring would be forthcoming in the following years. Management is of the view that on account of its long-term involvement in Novener SAS, no provision is required on this account at this stage.

18. The company has agreed to provide contingent support upto a maximum amount of Rs. 2 million Euro to its subsidiary Novener SAS as and when necessary depending on the cash flow requirement.

19. Information pursuant to the Provisions of Para IV of Schedule VI to the Companies Act, 1956, is attached.

20. Previous year's figures have been recast/restated wherever necessary.


Mar 31, 2010

1 Based on valuation made by professional valuers, Brand "Eveready" was valued at Rs. 66,000 Lakhs and was taken into the books in 2004-05.

2 Expert opinion was received whereby the working life of brand "Eveready" was estimated at more than 100 years. However, as a measure of prudence, the amortisation period of the brand has been kept at 40 years only.

3 Brand included as Intangibles in Fixed Assets (Schedule 5) includes purchased brand [Gross block: Rs. 1,600 Lakhs (31.3.2009: Rs. 1,600 Lakhs) and Net Block: Rs. 640 Lakhs (31.3.2009 : Rs. 800 Lakhs)].

4. Contingent Liabilities

4.1. Claims against the Company not acknowledged as debts

- Excise & Customs : Rs. 1,773.55 Lakhs (31.3.2009 : Rs. 1,318.52 Lakhs).*

- Sales tax : Rs. 34.75 Lakhs (31.3.2009 : Rs. 93.41 Lakhs).

Income tax

- The Department is in appeal in regard to matters decided in favour of the Company, the tax effect whereof is Rs. 71.59 Lakhs (31.3.2009 Rs. 71.59 Lakhs).

- The Company is in appeal in regard to assessments made, the tax effect whereof is Rs. 599.70 Lakhs (31.3.2009 : Rs. 599.70 Lakhs).

- In respect of matters relating to erstwhile The Bishnauth Tea Company Limited (BTCL) [amalgamated with the Company effective 1 April, 2000: Rs. 125.48 Lakhs (31.3.2009 : Rs. 125.48 Lakhs)].

-Excludes interest claimed in a few cases by respective Authorities but amount not quantified.

4.2 Others : Rs. 207.39 Lakhs (31.3.2009 : Rs. 193.39 Lakhs).

4.3 Bank Guarantees : Rs.134.06 Lakhs (31.3.2009 : Rs. 193.61 Lakhs).

5. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. 1,110.72 Lakhs (31.3.2009: Rs. 1,325.32 Lakhs).

6. Taxation

Provision for taxation includes provision for wealth tax Rs. 11 Lakhs (2008-09 : Rs. 11 Lakhs).

Note : a) The above excludes contribution to Gratuity Fund and provision for Leave liability as separate figures are not available.

7. The Proft and Loss Account includes net exchange Loss of Rs. 47.27 Lakhs (2008-09 : Loss of Rs. 13.56 Lakhs).

8. Loans and Advances (Schedule 10) include due from directors of the Company Rs. 22.01 Lakhs (31.3.2009 : Rs. 24.21 Lakhs). The maximum amount due from directors during the year was Rs. 24.21 Lakhs (2008-09 : Rs. 26.29 Lakhs).

9. Revenue Expenditure on Research & Development Rs. 191.09 Lakhs (2008-09 : Rs. 122.31 Lakhs) is included in Operating Expenses (Schedule 3).

10. Capital Work-in-Progress is inclusive of Capital Advances Rs. 358.51 Lakhs (31.3.2009 : Rs. 627.46 Lakhs).

Notes: 1) Excludes Batteries and Flashlights.

2) Figures in brackets represent particulars for 2008-09.

11. Purchase of finished goods for resale include Rs. 228.69 Lakhs (2008-09 : Rs. 1,350.98 Lakhs) towards purchase of 9.04 million pieces of Batteries (2008-09 :16.97 million pieces), Rs. 5,979.83 Lakhs (2008-09 : Rs. 6,845.79 Lakhs) towards purchase of 16.25 million pieces of Flashlights (2008-09 : 15.96 million pieces) and Rs. 7,943.29 Lakhs (2008-09 : Rs. 3,159.08 Lakhs) towards purchases of 35.68 million pieces of General Lights (2008-09 : 6.29 million pieces).

Notes:

(1) As certified by the management.

(2) Licensed / Registered Capacity for Batteries, Flashlights, Carbon Electrodes, Machinery, Machinery Parts and Moulded Plastic Components include additional/ new capacities for which Memorandum have been filed with the appropriate authority and which have been duly acknowledged by them under the Scheme of delicensing notified by the Government vide Notification No. 477 (E) dated 25.7.1991.

(3) On single shift basis.

(4) Includes production for captive consumption.

(5) Figures in bracket represent data for the previous year.

(6) The Hyderabad manufacturing facility has been discontinued from the close of business of April 24,2010.

12. Earnings in Foreign Currency

Export of goods calculated on FOB basis : Rs. 1,792.56 Lakhs (2008-09 : Rs. 1,766.07 Lakhs).

13. Unpaid dividend represents dividend of earlier years on shares allotted to certain non-resident shareholders of the erstwhile The Bishnauth Tea Company Limited (BTCL) pursuant to the Scheme of Amalgamation of BTCL with the Company and whose present whereabouts are not known. The number of shares attributable to such dividend is 63,037 (2008-09 : 63,037) equity shares.

14. Related Party Disclosures List of Related Parties

a) Subsidiaries The Ownership, directly or indirectly through Subsidiary (ies)

NovenerSAS Idea Power Limited

UnirossSA Rechargeable Online SAS

Uniross Batteries SAS Celltex Limited

Industrial - Uniross Batteries (PTY) Ltd. Lognes Batteries Corp.

Uniross Batteries GmbH Uniross Batteries Corp.

Uniross Batteries Limited North American Battery Corp.

Zhongshan Uniross Industry Co. Limited Multiplier Industries Corp.

Everfast Rechargeables Limited Everspark Hong Kong Private Limited

b) Key Management Personnel

Executive Vice-Chairman & Managing Director - Mr. D. Khaitan

Wholetime Director - Mr. S. Saha

c) Relatives of Key Management Personnel with whom the Company had transactions during the year

Mrs. Neena Saha - Wife of Mr. S. Saha

Mr. A. Khaitan - Son of Mr. D. Khaitan

d) Entity having significant influence - Williamson Magor& Company Limited

Notes: 1. Figures in brackets are for the previous year.

2. In accordance with Companys scheme.

Note: 1. Figures in brackets are for the previous year.

15. Segment Reporting

(1) The Company is engaged in the business of marketing of dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, insect repellants and other homecare products which come under a single business segment known as Fast Moving Consumer Goods (FMCG).

Note : 1. Figures in italics are in respect of the previous year.

Notes : 1. PRMB represents Post Retiral Medical Benefits.

2. Different discount rates used on account of separate plans and on account of different tenures of working lives of employees.

3. Pension and Gratuity Plans are funded while PRMB and leave liability are unfunded.

4. Figures in italics are in respect of the previous year.

5. Investment details of Gratuity fund in respect of certain employees are not available whose contribution is deposited and managed by Life Insurance Corporation of India.

16. Disclosure in accordance with Accounting Standard (AS) 29

The Company has made provisions towards Sales Tax, Excise and Others in view of the following and details of which are set out below

(a) The Company has a present obligation as a result of past events;

(b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

17. Convertible Warrants

The Company had on 17 October, 2007, issued and allotted 45,00,000 Convertible Warrants on preferential basis which were convertible at the sole option of the warrant holders within a period of 18 months from the date of allotment. During the year, an amount of Rs. 261 Lakhs representing the initial amount paid on the allotment of such warrants has been forfeited on the expiry of the time frame to opt for conversion. The amount forfeited has been transferred to Capital Reserve.

Unhedged exposure with respect to receivables as at 31st March 2010 was Rs. 66.22 Lakhs (US$ 0.15 million) [ 31.03.09 - Rs.117.28 Lakhs (US$ 0.24 million)] and with respect to amounts payable on account of import of Goods and Services Rs. 525.84 Lakhs (US$ 1.13 million & JPY 3.87 million)! 31.03.09 - Rs.116.79 Lakhs (US$0.24 million)]. The above disclosures have been made consequent to an announcement by the Institute of Chartered Accountants of India in December, 2005.

18. Information pursuant to the Provisions of Para IV of Schedule VI to the Companies Act, 1956, is attached.

19. Previous years figures have been recast restated wherever necessary.

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