August 22, 2003

Tata Tea Limited

Audited financial results for the year ended March 31, 2003

Rs in crore

Particulars

Nine Months
ended
December 31,2002

Quarter
ended
March 31,2003

Quarter ended
March 31,2002

Year
ended
31st March,2003

Previous
Year ended
31st March,2002

Income from Operations

567.22

193.53

203.58

760.75

777.37

Other Income

4.45

1.43

0.82

5.88

5.27

Total Income

571.67

194.96

204.40

766.63

782.64

Total Expenditure

472.35

202.50

221.44

674.85

683.67

(a) (Increase)/Decrease in stock

(46.04)

47.81

64.52

1.77

8.65

(b) Consumption of Raw Materials

100.87

28.43

23.21

129.30

119.73

(c) Staff Costs

170.11

63.57

64.82

233.68

243.60

(d) Other Expenditure

247.41

62.69

68.89

310.10

311.69

Profit before Interest and Depreciation

99.32

(7.54)

(17.04)

91.78

98.97

Interest (Net)

11.34

3.05

4.58

14.39

21.39

Gross Profit after Interest but

before Depreciation and Taxation

87.98

(10.59)

(21.62)

77.39

77.58

Depreciation

16.37

6.28

5.73

22.65

21.66

Profit before Tax from Operations

71.61

(16.87)

(27.35)

54.74

55.92

Income from Investments

17.47

27.89

2.37

45.36

20.70

Profit on Sale of Shares

9.19

Profit before Tax

89.08

11.02

(24.98)

100.10

85.81

Provision for Taxation

(a) Current Taxation

20.84

3.59

(7.35)

24.43

15.38

(b) Deferred Taxation

1.14

3.93

(1.30)

5.07

(1.53)

Profit after Tax

67.10

3.50

(16.33)

70.60

71.96

Net Profit available for the year

70.60

71.96

Balance in Profit & Loss Account brought forward

84.03

82.95

Transferred from Investment Allowance (Utilised) Reserve

2.75

Transferred in from Export Profit Reserve

4.57

Amount credited pursuant to a Scheme of Amalgamation

8.47

Amount Available for Appropriation

161.95

163.38

Appropriations

Dividend

-Interim

39.35

-Final

39.35

-

Income Tax on Dividend

5.04

-

Transfer to Debenture Redemption Reserve

3.25

-

Transfer to General Reserves

7.50

40.00

Balance Carried Forward

106.81

84.03

Paid up Equity Share Capital(face value of Rs 10 each)

56.22

56.22

56.22

56.22

56.22

Reserves excluding Revaluation Reserve

900.55

889.90

Earnings per Share-Rs

11.94

0.62

(2.90)

12.56

12.80

Aggregate of Non-Promoter Shareholding

-Number of Shares

39,647,984

39,449,734

39,628,584

39,449,734

39,628,584

-Percentage of Shareholding

70.52%

70.17%

70.49%

70.17%

70.49%

Notes

  • The income from operations for the quarter and the year ended March 31, 2003 declined by 5 % vis-a-vis the income for the corresponding quarter of the preceding year due to the difficult operating environment.
  • Profit before Tax from operations at Rs 54.74 crores was 2% lower than the profit earned in the preceding year. Income from investments for the quarter ended March 31, 2003 include Rs 25.24 crores being the maiden dividend received from Tata Tea (GB) Ltd, the Companys 98.58% subsidiary that owns The Tetley Group Ltd.
  • Consumption of raw materials during the quarter ended March 31, 2003 is higher on account of increased purchase of tea and spices for exports and utilization of a higher proportion of auction purchased teas. Staff costs are lower on account of continued improvement in labour productivity in the plantations.
  • On account of seasonality in the tea industry there is generally a loss from operations in the North-East in the last quarter of the year when production ceases in the winter months but fixed costs continue to be incurred.
  • Previous years figures have been regrouped, to the extent necessary, to conform to the current years figures.
  • The Board of Directors has recommended payment of dividend at Rs 7/- per share of face value of Rs 10/- each aggregating to Rs 44.39 crores, including dividend tax for the year 2002/03 (previous year Rs 39.35 crores being @ 70%).
  • The aforementioned results were taken on record by the Board of Directors at its meeting held on June 25, 2003.
  • The Tetley Group Ltd, (the Companys 98.58% subsidiary, the results of which are not incorporated in these accounts) reported a turnover for the 2002/03 accounting year of 256.0 million (PY - 257.9 million). The current years turnover is not strictly comparable to the preceding financial year as during September, 2002 The Tetley Group Ltd sold its Private Label business in the USA, the full year income of which is reflected in the 2001/02 accounting year turnover. The Profit before Tax of 12.8 million as well as the Profit after Tax of 9.4 million earned by the Company during 2002/03 was 146% higher than the respective profitability for the preceding year.

    The Tetley Group Ltd declared a dividend of 4 million for 2002/03 of which Rs 25.24 crores was directly received by Tata Tea Ltd (refer point 2 above) and an additional Rs 4.40 crores was received by Tata Tea Inc, USA, a 100% subsidiary of Tata Tea Ltd.

Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for three months ended March, 2003

Rs/crore

Items

Nine months ended
December
31
, 2002

Quarter ended
March 31

Year ended
March 31

Previous Year ended
March 31

2003

2002

2003

2002

1

Segment Revenue

(a)Tea

537.27

185.88

194.64

723.15

745.56

(b)Others

29.95

5.99

6.64

35.94

32.32

567.22

191.87

201.28

759.09

777.88

Less: Inter Segment Revenue

-

-

0.75

-

1.50

Net Revenue from Operations

567.22

191.87

200.53

759.09

776.38

2

Segment Results

(a)Tea

105.83

(5.62)

(15.68)

100.21

106.45

(b)Others

0.74

0.88

0.58

1.62

0.06

106.57

(4.74)

(15.10)

101.83

106.51

Less: Interest(net)

11.34

3.05

4.58

14.39

21.39

Add : Unallocable income net of unallocable

expenditure

(6.15)

18.81

(5.30)

12.66

0.69

Total Profit before Tax

89.08

11.02

(24.98)

100.10

85.81

3

Segment Capital Employed

(a)Tea

468.40

412.91

406.66

412.91

406.66

(b)Others

8.49

7.70

6.08

7.70

6.08


Notes

  • The definitions of the internal business segmentation and the activitities encompassed therein are as follows:

    Tea: Cultivation & manufacture of black tea and instant tea,tea buying / blending and sale of tea in bulk or value added form.

    Others: Cultivation & production of coffee, other minor crops, trading in commodities etc.
  • The segment wise revenue, results and capital employed figures relate to the respective amounts directly identifiable to each of the segments. Unallocable expenditure relates to expenses incurred on common services at the corporate level for the Company as a whole.

Unaudited Consolidated Financial Results for the year ended March 31, 2003

Rs in crore

Items

Year ended
31st March,2003

Previous
Year ended
31st March,2002

Income from Operations

3371.46

3046.20

Investment Income

16.02

25.13

Total Income

3387.48

3071.33

Total Expenditure

2954.24

2672.27

(a) (Increase)/Decrease in stock

9.94

(5.47)

(b) Consumption of Raw Materials

630.80

601.03

(c) Staff Costs

493.75

500.89

(d) Other Expenditure

1819.75

1575.82

Profit before Interest and Depreciation

433.24

399.06

Interest (Net)

165.56

180.39

Gross Profit after Interest but

before Depreciation and Taxation

267.68

218.67

Depreciation

88.77

92.02

Profit before Tax

178.91

126.65

Provision for Taxation

(a) Current Taxation

53.62

21.64

(b) Deferred Taxation

8.21

1.52

Profit after Tax

117.08

103.49

Share of Profit/(Loss) from associated undertaking

(8.57)

Minority Interest in Consolidated Profit/(loss)

10.69

4.82

Profit after Tax adjusted for Share of Profit/(Loss) from

Associated Undertaking and Minority Interest

97.82

98.67

Paid up Equity Share Capital(face value of Rs 10 each)

56.22

56.22

Reserves excluding Revaluation Reserve

1119.64

1002.27

Earnings per Share-Rs

17.40

17.55

Notes

  • The consolidated financial results of the Tata Tea Group of companies have been prepared in accordance with the Accounting Standard AS-21 on Consolidated Financial Statements, AS-23 on Accounting for Investments in Associates in Consolidated Financial Statements as well as AS-27 on Financial Reporting for Interests in Joint Ventures issued by the Institute of Chartered Accountants of India.
  • Since Accounting Standards AS-23 and AS-27 became applicable with effect from April 1, 2002, previous years figures are not strictly comparable with the current years results.
  • The undernoted subsidiary and associate companies accounts have been considered for the purpose of preparing the consolidated Financial Accounts:

    Nature of Holding

    Company

    Ownership % directly or through a subsidiary

    Subsidiary Companies

    Tata Tea (GB) Ltd
    Tata Coffee Ltd
    Tata Tea Inc
    Tata Tetley Ltd

    98.58
    50.67
    100.00
    99.29

    Associate Companies

    Estate Management
    Services Pvt Ltd
    Rallis India Ltd

    49.00

    24.52

  • The consolidated financial accounts take into consideration the published unaudited financial results of an associate company for the nine months ended December 31, 2002 as the audited accounts for the full year ended March 31,2003 are not yet available.
  • The aforementioned results were taken on record by the Board of Directors at its meeting held on June 25, 2003.
Place: Mumbai
Dated:June 25th, 2003

For and on behalf of the board of directors

Ratan N Tata
(Chairman)