Institute of Management Nirma University

Master of Business Administration (Full Time)

2015-17
Term-1
Managerial Accounting-1
Assignment-1
Analysis of the annual report of Gillette India Ltd

Submitted by
Debadatta Ratha
151222

CONTENTS

1. Acknowledgement
2. Basics of Business
3. Annual Report
4. Financial Statements
5. Auditors
6. The Profit & Loss Statement
7. The Balance Sheet
8. Corporate Governance Report
9. Business Responsivity Report
10.

Corporate Social Responsibility Report

11.

Management Discussion and Analysis (MDA)

12.

Reference

Acknowledgement

Page 2 of 17

I owe a deep sense of gratitude to the Prof. Nikunj Patel for his
continuous support in completion of this analysis report. His
dedicated teaching and suggestions for resolving any of my
queries has led to the successful completion of this report.
I am extremely thankful to all my friends who cooperated with
me for completion of this report.

Basics of Business
1. Gillette India Ltd as a part of P&G India has a product portfolio ranging from
men & women grooming products, oral healthcare products, skin care
products and portable power products. Gillette focuses on the premium
segment of men & womens grooming market. Led by the strong ideas of
commitment to creating consistent and sustainable value for consumers by
Innovation & Productivity Gillette retains the top position in the country. It is
Page 3 of 17

a public ltd company and is listed in BSE and NSE as BSE Stock Code:
507815, NSE: GILLETTE, ISIN CODE: INE322A01010.

2. Some of its popular brands in the market are Vector, Fusion, Mach 3, Fusion
Hydra Gel, Series Sensitive Skin gel, Oral B, Duracell etc. Oral B is the brand
which carters to the oral healthcare segment by its offerings Oral B Pro
Toothpaste, toothbrush. Duracell brand takes care of the portable power
solutions which offers NiCd, Lithium ion AA & AAA batteries. The Duracell
batteries are very popular and reputed for being durable and long lasting.
3.

The major supplier to Gillette India are

4. Gillette India is an FMCG company which carters directly to the consumers in

India and other Asian countries. It exports products to other Asian countries
such as Nepal & Bhutan.
5. The number of employees as of 30 th June 2014 were 678. The number of
employees with the company brings up a physical factor of strength of the
company. It also gives an idea regarding the expenses in salary, provident
fund, gratuity and superannuation.

Annual Report
6. Financial Statements in the Annual report 2013-14 are
a.
b.
c.
d.

Balance Sheet
Statement of Profit and Loss
Cash Flow Statement
Notes forming part of the financial statement

Non-Financial Statements in the Annual report 2013-14 are

e.
f.
g.
h.
i.

Chairmans Letter
Directors Letter
Management Discussion and Analysis
Corporate Governance
Auditors Report

The company provides information regarding various aspects of the

company.
Yes the information provided are highly useful, it briefs the stakeholders of
the company regarding its vision, value offerings, position and targets in
the current market scenario. It further informs the stakeholders regarding
the state of operations of the company, the future plans and proposals,
recent developments, corporate social responsibility activities and
performance & environmental sustainability.

Page 4 of 17

The stakeholders are the intended audience in these statements. The

stakeholders constitutes of the shareholders, investors (individual and
financial organisation), Government agency, Security and Exchange Board
of India (SEBI), National Stock Exchange (NSE), Bombay stock Exchange
(BSE), Employees, Board of Directors. Yes they will be able to understand
the information.
Highlights of Non-Financial Statements
a. Chairmans Letter
The letter from the Chairman of Gillette India Ltd Mr. B.S Mehta is a
comprehensive piece of information which gives an initial idea
regarding the company. He has emphasized on value creation for the
consumers by constant innovation and productivity. He also informed
the financial standings of the company, the market position and the
robust growth of the company in the financial year 2013-14. He
specifically highlighted the multi city outreach and the influencer
advocacy movement which boosted their position in the market.
Furthermore he also outlined the CSR initiatives and activities that has
been carried out by company in different parts of the country.
b. Directors report
The directors report gives an overall idea about the key aspects of the
company. The message from the directors to the members informs
regarding the financial results, dividend offered, state of operations,
product launch, product development and marketing campaigns. It also
informs the members about the state of manufacturing at the
production units of the company ensuring control over quality, safety
and cost in the process. The report also gives an exhaustive insight to
the CSR initiatives and activities taken up by the company. Some of the
most profound initiatives are P&G Shiksha and P&G Parivartan,
these are aimed at improving the lives of children from the lesser
privileged backgrounds through health and education. P&G Shiksha
has also been awarded the prestigious Bhamasaha award by the Govt
of Rajasthan. Also the efforts taken up during the Uttarakhand flood
and Odisha cyclone in rehabilitation has been informed to the
stakeholders. Stating the importance of environmental sustainability in
the report the directors report illustrates the initiatives and
achievements in that area.
The company headquarters at Mumbai and the production units at
Rajasthan have been able to reduce their environmental footprint and
energy consumption by a significant amount. The Directors
Responsibility Statement confirms the standards and the process taken up for
making the annual report. The report also declares the details of the directors,
the minimum public shareholding requirement as per SEBI, the details of the
auditors and human resource development.

c. Management Discussion and Analysis Report (MDAR)

The MDAR highlights the impact of the Union Budget 2014-15 and the
economic scenario of the country. It also gives an outlook regarding the
FMCG market, the consumers, competitions, Risk & Opportunities
involved. It also provides a business review regarding all the product
segments. It also emphasises on Risk Management, Internal Control
and HR initiatives in the company.
Page 5 of 17

7. The 30th Annual General Meeting was to be held on Monday, September 29,
2014 at 11:00AM.
Discussion regarding the appointment of Directors, appointment of the
auditors, financial position of the company, the performance in the stock
market were to be discussed.

Financial Statements
8. The reporting entities
a.
b.
c.
d.
e.
f.

of the company are

Shareholders & Investors
Income Tax Department
Excise Department
Securities and Exchange Board of India
National Stock Exchange & Bombay Stock Exchange
Employees, Vendors & Customers

9. Notes to the financial statements contains break up details of the total

transaction figures in the financial statements. It gives a detailed values for a
major head in the financial statement.
e:g
a. Share Capital under Equity and Liability as at 30 th June
2014 is given to be at INR3259 Lakhs, the total figure
is supported by the breakup details in note no.3. Note
3 gives in details regarding the Equity holding patterns
of the company, where Reconciliation of fully paid
equity shares of 10 each stands at INR 3259 Lakh at
the end June 2014. Furthermore it also gives the details
of the shareholders holding more than 5% equity
shares.
b. Long term Liability under Non-Current Liabilities in the
balance sheet is INR 2Lakhs as at 30 th June 2014, Note
number 6 describes the details of the liability. Trade
and security deposits of INR 2 Lakhs are taken as long
term liability.
c. The balance sheet under the head Assets, values
Inventories at
INR 23055 Lakhs, Note No. 13 gives the breakup
details. The inventories values at
1. Raw Materials at INR 4846 Lakhs (with Goods in
transit included and Goods carried forward from the
previous year)
2. Packing materials at INR 519 Lakhs
3. Shaving System and cartridges at INR 526 Lakhs
4. Oral Care at INR 13 Lakhs
5. Finished goods at INR 4619 Lakhs
6. Stock in trade (goods purchased for resale)
(Including goods in transit and goods carried
forward worth INR 83 Lakhs from next year) at INR
10239 Lakhs
7. Consumable Store and spares at INR 2293 Lakhs
Page 6 of 17

d. Value in Expenses against Purchases of Stock-in-Trade

(Traded Goods) in the balance sheet is INR 48758 Lakhs. The
Note number 20 b gives the details as
1. Blades at INR 5229 Lakhs
2. Oral Care at INR 27017 Lakhs
3. Shaving Brush at INR 743 Lakhs
4. Shaving Systems and Cartridges at INR 8221 Lakhs
5. Toiletries at INR 7548 Lakhs

e. Lease Payments in the Profit and Loss statement has

been mentioned as INR 304 Lakhs. Note no. 34 gives
details of the lease guesthouses which has been taken
up for the accommodation of the employees. Out of
INR 304 Lakhs (including INR 234 Lakhs from the
previous fiscal year has also been added herewith).
10.Accounting Policies
a. Depreciation(Accounting Policy 2.05)
b. Employee Benefits (Accounting Policy 2.09)
c. Leases (Accounting Policy 2.13)
Sl.N
o

Accounting
Policy

Policy
No.

A
B

Depreciation
Employee
Benefits
Leases

2.05
2.09

Year
Balance
Lakhs)
3298
9513

2.13

304

Ending
(in INR

11.The information provided in the financial statement is the responsibility of

a. Accountant/Auditor
( Shyamak R Tata Partner for DELOITTE HASKINS &
SELLS LLP)
b. Directors
B.S Mehta
S Khosla
K Natrajan
J Rastogi
Officer

Chairman
Managing Director
Chief Financial Officer
Dy. Company Secretary & Compliance

12.The informations pertaining to the profit per individual brand, profit per
segment, operations cost for individual segment are not available in the
balance sheet. These information make up the core competency of any
company, revealing these information would give competitors an undue
advantage over the company.
13.The details of marketing strategies, R&D information related to new product,
product efficiency, cost of production, procurement details are some of the
useful data which are available internally but never disclosed in the financial
statements.

Auditors
Page 7 of 17

14.DELOITTE HASKINS & SELLS LLP Chartered Accountants (Firm Registration No.
117366W/W-100018) Shyamak R Tata (Partner) (Membership No. 038320) is the
auditor for Gillette India Ltd.
15.The auditors report is addressed to The Members Gillette India Ltd. The
auditor was appointed by the company on behalf of all the stakeholders to the
company. Moreover the management of the company is responsible for
providing true financial information without any misstatement.
16.The auditor reports to the members of Gillette India Ltd on the following items
a. Report on the Financial Statement
b. Managements
Responsibility
for
the
financial
statements
c. Auditors Responsibility
d. Opinion
e. Emphasis of matter
f. Report on Other legal and Regulatory Requirements
17.The remuneration of the auditor stands at INR 130 Lakhs. The breakup is
given below

To Statutory Auditors

For Audit
For Taxation Matter
For Limited Review
For Other services
Reimbursement
expense
Service Tax

of

Expenses
Lakhs)
65
16
16
3
4

(in

INR

13

To Cost Auditor
For Cost Audit
TOTAL

13
130

18. The auditor report highlights the issue of excess payment of

commission amounting to INR 24 Lakhs (including Service Tax of INR 3
Lakhs). The details are provided in Note 36b under commission to
non-executive directors. For the financial year 2012-13 aggregate
amount of commission INR 172 Lakhs (INR 19 Lakhs Service tax) has
been paid by the company which exceeded the maximum amount
payable by the company based on 1% of the net profits of the
company, it is an excess payment by INR 24 Lakhs. The said excess
amount has been ratified by the members of the company. The
companys application for the waiver of the excess commission is
pending with the central government for approval.

The Statement of Profit & Loss

Page 8 of 17

19.

Major items of revenues for Gillette India Ltd are

a. Sale of Products (Manufactured goods, Traded
goods)
b. Other operating revenues
c. Other Income
Year
ended on
30th June
14(in INR
Lakhs)
176180

Year
ended on
30th June
13(in INR
Lakhs)
145645

%
Change

Sale of Product(Manufactured
20
goods & Traded goods)
2
Other
operating
revenues 417
239
74.4
(Sale
of
scrap
&
raw
materials)
3
Other income(interest & misc) 3162
3655
[15]
20.Reference Note No.2 Significant Accounting Policy 2.03 Revenue Recognition
Sale of product is recognised when the risk and rewards of ownership of the
products are passed on to the customers, which is generally on the dispatch
of the goods. Sales exclude trade discounts and rebates. Sales include excise
duty but excludes Sales Tax and Value Added Tax.
Interest Income is accounted on accrual basis.
21.The Sources of companys gain are
(a) Revenue from the sale of products
(b) Revenue from operations
(c) Other Incomes
Sl
1
2
3

Revenue from the sale

of products
Revenue
from
operations
Other Incomes

Revenue (in INR

Lakhs)
174562

wrt PBT

wrt PAT

4%

3%

417

19%

12%

3162

39%

61%

Total Income = PBT = INR 8066 Lakhs PAT= INR 5142 Lakhs
22.Reference: Note No.2 Significant Accounting Policy 2.03 Revenue Recognition
Sale of product is recognised when the risk and rewards of ownership of the
products are passed on to the customers, which is generally on the dispatch
of the goods. Sales exclude trade discounts and rebates. Sales include excise
duty but excludes Sales Tax and Value Added Tax.
Interest Income is accounted on accrual basis.
The details are given below
Reference: Note No. 18
Revenue from Operation (Gross) = INR 176597 Lakhs
Excise Duty = [INR 1618 Lakhs]
Revenue from Operation (Net) = 176597-1618 = INR 174979 Lakhs
23.Gillette India Ltd has no revenues from services.
Page 9 of 17

24.Company recognizes dividend income only when its right to receive the
payment is established. However Gillette India Ltd has not bought any equity
from other company, thus no revenue from dividend.
25.Major items of expenses with percentage change are

Sl.N
o

1
2
3
4
5
6
7
8

Expenses

Year
ended
on 30th
June
14(in
INR
Lakhs)
Cost of Raw and Packing Materials 35786
Consumed
Purchase of Stock in trade(Traded
goods)
Changes in Inventories of Finished

Goods,
Work-in-Progress and Stock-in-Trade.
Employee Benefits Expenses
Finance Costs
Depreciation
and
Amortization
Expense
Other expenses
Tax Expenses

Year
ended
on 30th
June
13(in
INR
Lakhs)
30793

%
Chan
ge

48758

38249

27.4

136

[2164]

[93]

9513
36
3298

7865
2
3132

20.9
94.4
5.3

72548
2894

55725
5109

30
[43]

16

26.

The company has neither incurred losses in the end of the financial year
nor during the financial period.
27.Total amount spent on employees for the year ending 30 th June 2014 is INR
9513 Lakhs
For the year ending 30th June 2013 is INR 7865 Lakhs, So change with
respect to previous year is 20.9%.
28.Advertising expenses incurred is INR 25545 Lakhs,
Advertising
Expenses

Total Expenses
15%

PAT
500%

Sales Revenue
14.4%

29.Finance Cost = INR 36 Lakhs

Finance cost to Total Revenue = 36/178141 = 0.02% for the year ending
30th June 14
Finance cost to Total Revenue = 2/147427 = 0.001% for the year ending
30th June 13
30.Top three Expenses head includes
a. Cost of Raw and Packing Materials Consumed
Page 10 of 17

b. Purchases of Stock-in-Trade (Traded Goods)

c. Other Expenses
Accounting Policy pertaining to these expense heads are given below
Reference: Notes No.2 Accounting Policy: 2.07: Inventories
Inventories consist of raw and packing materials, stores and spares, work
in progress and finished goods. Inventories are valued at lower of cost and
net realisable value after providing for obsolescence and other losses
where considered necessary. Cost of Inventories is determined on
weighted average basis. Cost of manufactured finished goods and work-inprogress includes material cost determined on weighted average basis
and also includes an appropriate portion of allocable overheads.
31.Depreciation & Amortization Expense is INR 3298 Lakhs, Total Fixed assets
INR 23347 Lakhs
Depreciation is 14.1% of the total fixed asset and is 2% of total expenses.
Straight line method is adopted for finding the depreciation.
Reference: Note No.2 Accounting Policy, 2.04 & 2.05.

The Balance Sheet

32.Assets having highest proportion in the total
Sl.No Assets
As on 30th
June 2014(in
INR Lakhs)
1
Inventories
23055
2
Tangible Assets
17263
3
Short Term Loans 19758
and Advances

assets of the company are

% of Total
Asset
21.8%
16.3%
18.7%

33.Fixed assets are given by their cost of acquisition less accumulated

depreciation & amortisation and impairment losses.
Reference: Note No.2 Tangible Fixed Asset 2.04.
Fixed asset purchased during the year 2014 is INR 3552 Lakhs, which
amounts to 3.3% of the total assets.
Yes, the fixed assets are significant.
34.Fixed assets sold/discarded in the year 2014 amounts to INR 165 Lakhs. It
makes up to 0.001% of the total assets and hence it is not significant.
35.Capital work in progress worth INR 6084 Lakhs finished and transferred to
fixed assets during the year.
36.No intangible assets has been described in the financial statements.
37.No long term investments for the year ending 30 th June 2014 has been
done.
38.No significant investment plans.
39.No investments in any subsidiary companies.
40.Current assets stand at INR 69680 Lakhs, it amounts to 66.1% of the total
assets.
There is a 4.8% drop in the proportion as compared to last year.
Page 11 of 17

41.Proportion of cash(INR 16961 Lakhs) in the total asset is 16.09%. Change

in proportion as compared to the last year is 0.09%. There is no cash in
transit.
42.Trades receivable is INR 9226 Lakhs, and INR 400 Lakh is considered as
doubtful. A drop of INR 21 Lakh has been in the doubtful amount as
compared to the last year.
43.Trades receivable outstanding for more than six months is INR 728 Lakhs,
as compared to INR 881 Lakhs in the last year.
44.Inventories amounts to INR 23055 Lakhs which is 21.8% of the total
assets. Last year the proportion of inventories to total asset was 23%.
Thus a drop of 1.2% in the proportion.
45.Reference: Accounting policy in Note No.2, Inventories, 2.07. Inventories
consist of raw and packing materials, stores and spares, work in progress
and finished goods Inventories are valued at lower of cost and net
realisable value after providing for obsolescence and other losses where
considered necessary. Cost of Inventories is determined on weighted
average basis. Cost of manufactured finished goods and work-in-progress
includes material cost determined on weighted average basis and also
includes an appropriate portion of allocable overheads. Last year the
inventories amounted to INR 23973 Lakhs.
Sl.N
o

Inventories

1
2
3

Raw Materials
Packing Materials
Work-in-progress(Shaving
System & Cartridges & Oral
care)
Finished
goods
(Manufactured)
Stock-in-trade
(goods
purchased for resale)
Consumables (Stores and
Spares)

4
5
6

As on 30th June
14
(in
INR
Lakhs)
4846
519
526

As on 30th June
13
(in
INR
Lakhs)
6119
513
385

4619

4634

10239

10514

2293

1808

46.Raw materials consumed is INR 35786 Lakhs, it is 20.5% of the total sales
revenue.
For last year the raw materials consumed was INR 30793 Lakhs which was
21.4% of the total sales revenue.
47.No Short term investments.
48.Current liability for the year ending 30 th June 2014 is INR 40607 Lakhs
which is 98.8% of the total liabilities. For the year ending 30 th June 2013
current liability was INR 38188 Lakhs which was 97.9% of the total
liabilities. Thus there is a 0.7% increase in the proportion of current
liability to the total liabilities.
Page 12 of 17

49.The significant current liabilities are

Sl.No

Liabilities

Trade
Payables
Other current
liabilities
Short
Term
provisions

2
3

As on year
ending
on
th
30
June
2014 (in INR
Lakhs)
25605

As on year
ending
on
th
30
June
2013 (in INR
Lakhs)
22367

% Change

5158

6534

[21.0%]

9844

9287

6%

14.4%

50.Trade accounts payable as on 30th June 2014 is INR 25605 Lakhs which is
62.3% of the total liabilities. For the year ending on 30 th June 2014 the
proportion is 57.35% to total liabilities.
51.Contingent liabilities of the company are
Reference: Note No. 24 a, Contingent Liabilities
a. In respect of Income Tax demands for which the company has preferred
appeals with appropriate authorities INR 10 009 lakhs (Previous year:
INR 4 160 lakhs). The contingent liability is in respect of matters
related to: Income tax dispute on inventory write-off, allowability of
losses carried forward from merged entities and others.
b. In respect of Sales tax matters for which the company has preferred
appeals with appropriate authorities INR 1 397 lakhs (Previous Year:
INR 1135 lakhs). The contingent liability is in respect of matters related
to non-submission of C Forms / F Forms INR 796 lakhs (Previous
Year: INR 585 lakhs) and others INR 601 lakhs (Previous Year: INR 550
lakhs).
c. In respect of Excise, Service Tax and Customs matters for which the
company has preferred appeals with appropriate authorities INR 20
816 lakhs (Previous Year: INR 16 292 lakhs). The contingent liabilities
are in respect of denial of excise duty benefits at excise exempt
location INR 17 337 lakhs (Previous Year: INR 9 943 lakhs) out of which
the Company has a right to claim Cenvat credit of INR 8 943 lakhs
(Previous Year: INR 6 017 lakhs); denial of Cenvat credit INR 55 lakhs
(Previous Year: INR 3 161 lakhs); service tax matters INR 1 591 lakhs
(Previous year: INR 1 361 lakhs); Customs valuation disputes INR 1 528
lakhs (Previous Year: INR 1 528 lakhs) and others INR 305 lakhs
(Previous Year: INR 299 lakhs).
d. In respect of counter guarantees given to bank against guarantees
given by bank INR 4 112 lakhs (Previous Year: INR 3 291 lakhs). At the
request of the Company, its bankers have issued guarantees to
government bodies and third parties for performance obligation under
various commercial agreements. The Company has issued counter
guarantees to the banks in respect of these guarantees.

Page 13 of 17

e. In respect of other claims INR 5 456 lakhs (Previous Year: INR 135
lakhs). The Company is a party to various legal proceedings in the
normal course of business.
52.Long term liability for the year ending on 30 th June 2014 stands at INR 2
Lakhs, which is 0.0004% of the total liabilities hence it is negligible. Some
of the important source of long term liability are Trade/Security deposits
and Deferred Tax liabilities.
53.Share capital for the year ending 30th June 2014 is INR 3259 Lakhs, which
is 3% of the total liability for the year.
No, there is no change in the share capital as compared with the previous
year.
54.Face value of equity share is INR 10 only. The company has issued shares
worth INR 219 Lakhs to employees under the ESOP Scheme (Ref: Note no.
27). However the company has not issued any shares for non-cash assets.
55.Reserves for the year ending 30th June 2014 is stated to be INR 29951
Lakhs, which is 28.41% of total liabilities. The proportion of reserves wrt
total liabilities has gone up by 1.4% as compared to the previous year.
56.The basic/diluted earnings for share has been stated as INR 15.78 Lakhs.
Dividend of INR 15 per share has been offered which amounts to INR 48.88
Crores.

Corporate Governance Report

57.The Corporate governance report states three most important items which
are
a. Corporate Governance Philosophy
Corporate governance is the interaction of the management,
members and the board of directors to help ensure that the
stakeholders are protected against managers acting solely in
their own best interest. The companys governance philosophy
believes in the governance process which ensures that the
societal measures employed by the company are utilized in a
manner that meets the stakeholders expectation. It also
envisages that Corporate Governance is at its highest when the
management is working as a long term investor in the company.
It also puts forward the integrity of the company both internally
and externally. The commitment to operate responsibly is
reflected in the steps that has been put in place to ensure
rigorous financial discipline and corporate governance.
The Board of directors involved in the company are highly
experienced and thus help in maintaining highest standards of
the corporate governance.
Further the company reinforces responsibility of all the
employees including key employees of observing high standards
of corporate governance through the Companys Worlwide
Business Conduct Manual(WBCM).

Page 14 of 17

The WBCM also gives a detail about the policy statement,

operating policy, procedures, practices, and internal controls to
be followed by the company with specific emphasis on ethical
behaviour of employees, compliance with all applicable laws in
letter and spirit, ensuring accuracy of books & records,
maintaining confidentiality of corporate data, avoidance of
conflict of interest, fair dealings, fair competition, following best
practices for safety and health of Company personnel,
environmental protection, trading in securities and a host of
special legal issues.

b. Board Of Directors
This section has illustrated the composition of the board of directors,
the backgrounds and the expertise of the directors. It also gives the
details of the meetings attended by the directors, further it also gives
the details of the remuneration of the directors.
It also clearly states that no stocks has been issued to the directors of
the company. They also have the responsibility in forming the audit
committee and the shareholder grievance committee.
c. Shareholders
This area in the Corporate Governance Reports deals with the
information for the shareholders, the disclosures regarding the
appointment/ re-appointment of the directors, the details of the
communication with the shareholders are also mentioned. It also
discloses the minimum public shareholding requirement as prescribed
by SEBI. The shareholders are also made aware about the AG meetings.

Business Responsivity Report

58.No Business Responsivity Report has been provided in the Annual Report
2013-14.

Corporate Social Responsibility Report

59.Corporate Social Responsibility

Project Shiksha
Project Parivartan & The Whisper School Program
Timely Disaster Relief
Project Shiksha
Since its inception in 2005, this activity has changed and
transformed many lives. It has empowered consumers to contribute
towards the education of the underprivileged children. Till date it
has utilized INR 32 Crores in developing 300+ schools, providing
critical infrastructure, basic amenities and has revived many
government schools too.
It also takes special care for the girl child education, one of the
examples is on mewat Rajasthan, where the students are provided
with free meals, uniform, library, and recreational activity and study
tours. Project Shiksha received the prestigious recognition with the
Bhamashah award by the Rajasthan Govt.
Page 15 of 17

Project Parivartan
One of the flagship CSR activity of the parent company, Project
Parivartan provides children from underprivileged backgrounds with
access to basics like health care and education. The Whisper School
program focuses on the elevation of the education level in the
underprivileged sections of the country. The project covers both
Government and the schools by NGOs. This program along with the
Save the Children has expanded its operations to many schools
such as the Kasturba Gandhi Valika Vidyalayas & 14 other primary
schools and middle schools. All of them were supported through the
provision of sports kits and laboratory equipment, which has
enhanced the self-confidence and the learning abilities of the girl
children.
Timely Disaster Relief
The disaster relief activities aim to rehabilitate and empower the
victims of natural disasters by providing them with daily essential
commodities and safe drinking water. Over the past years it has
provided timely relief to 15800 families affected by the Uttarakhand
flood and Odisha Cyclone.

Management Discussion and Analysis (MDA)

60.The Management Discussion and Analysis Report gives a broader sense of
the market in a concise way. It discusses the impact of the union budget
2014-15 on the market economy. It also briefs about the products of the
company (male grooming, oral care & portable power).
Some of the important areas in the MDA are
Risk Management
Internal Controls and their adequacy
HR Initiatives
Risk Management
The companys risk management techniques are in line with the parent
companys global standards. It has been branched under 3 categories (I)
Business (II) Financial (III) Operational
On business risk the company undertakes a competition response model
program. It also undertakes Business Contingency Plan for key vendors and
natural disasters. The Company also has adequate Insurance coverage to
protect the value of its assets. It also envisages the regulatory and
compliance & security risks along with that the necessary steps to check
the discrepancies.
Internal Controls and their adequacy
The company has strong Internal Controls Environment and Risk
Assessment/Management systems in place to comply with Internal Company
policies, procedures, standard guidelines and local laws to help protect Companys
Assets and Confidential information against financial losses and unauthorized use.
Some of the methods are (I) Controls Self-Assessment (II) Stewardship Review (III)
Governance and Stewardship boards.
HR Initiatives

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To operate and sustain in the competitive environment the company

attracts best talents. The Company focuses on attracting, motivating and
retaining the best talent. The attraction and retaining of talents are done
by innovative campus initiatives or digital face to face interaction. It also
focuses its major part in developing talents via its programs like Future
Star Program, P&G Leadership Academy. It also has a robust annual
performance management system which clearly assess the employees on
the basis of their performance and capabilities.
27.

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