By Himanshu V. Kishnadwala, Chartered Accountant
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From Notes to Accounts:
(13) (a) The exceptional items stated in the Profit and Loss account are as under:
(b) During the year, upon completion of necessary compliances under FEMA regulations, the Company divested its stake in Sundari LLC (Sundari) on 8th June, 2009. Sundari ceased to be subsidiary of the Company from the said date. Accordingly, the financial statements of Sundari have been consolidated with that of Marico Limited for the period from 1st April, 2009 to 8th June, 2009. The net effect of the divestment of Rs.4.05 crores is charged to the Profit and Loss account and reflected as ‘Exceptional item’ (detailed hereunder):
(c) Kaya Ltd., a wholly-owned subsidiary of the Company, had launched the Kaya Life prototype to offer customers holistic weight management solutions and had opened five ‘Kaya Life’ centres in Mumbai and Kaya Middle East FZE, a step-down subsidiary of the Company had also opened one centre in the Middle East during the past three years. While clients had been experiencing effective results on both weight loss and inch loss, the prototype had less than expected progress in building a sustainable business model. Hence, the Management took a strategic decision of closing down the centres in March, 2010. Consequently, the Group has made an aggregate provision of Rs.5.74 crore towards impairment of assets of Rs.2.91 crore and other related estimated liabilities of Rs.2.83 crore towards employees’ termination, lease termination costs, customer refunds and stock written down relating to these centres for the year ended 31st March, 2010. (Refer note 23 below)
