28 february 2014 annual report taxation across...
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Chaitanya Arora ([email protected]); +91 22 3982 4927 1
Investors are advised to refer through disclosures made at the end of the Research Report.
28 February 2014
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TAXATION ACROSS CONSUMER COMPANIES
In this note, we analyze the tax structure of Indian consumer companies,
especially the ones with significant international exposure. We note that
effective tax rate for certain companies is much lower v/s standard tax rates
of specified geographies due to various tax exemptions. In the following
pages, we discuss in detail the domestic and international tax structure of
key FMCG companies.
An analysis of our FMCG coverage universe companies (above
USD2b market cap) reveals that the consolidated Effective Tax
Rate (ETR) is lower than the standard tax rates of specified
geographies for Godrej Consumer Products (GCPL) (17.5%), Dabur
India (Dabur) (19.3%), Hindustan Unilever (HUVR) (24.2%),
Colgate-Palmolive India (Colgate) (25.1%), Marico (26.5%) and
Pidilite (27.4%).
Standalone ETR is lower than the domestic corporate tax rate of
34% (including surcharge and cess) due to tax exemptions
available for manufacturing units located in backward areas/
developing locations. As per our analysis and based on
management information, standalone tax rates are likely to
increase during FY15-FY17 for Colgate, HUVR, Marico, with tax
exemptions expiring for certain manufacturing locations (refer
company-wise sections in detailed report).
GCPL, Dabur and Marico have meaningful subsidiaries (more than
20% of consolidated turnover from subsidiaries).
Dabur's lower tax rate is attributable to majority of subsidiary
profits being routed through UAE, a free-trade zone (turnover of
INR6.7b with PBT/PAT of ~INR1b in FY13). Also, its US subsidiaries,
Namaste Laboratories LLC (turnover of INR5.0b with PBT/PAT of
~INR300m in FY13) and Dermovia Skin Essentials INC (turnover
of INR461m with PBT/PAT of INR366m in FY13), have 0% tax. Tax
rates are normally at 40% in the US.
GCPL's FY13 subsidiary tax rate is lower due to: (a) tax rate being
low in Indonesian business due to inter-subsidiary royalty
income, which gets eliminated on consolidation, (b) prior year
tax refunds at Nigerian subsidiary (Lorna Nigeria), which is
eligible for tax exemption for five years and (c) tax exemptions
in Mozambique (Weave Mozambique Limitada) and Lebanon
(Hair Trading (offshore) S.A.L).
Marico's derived subsidiary PBT is INR99m with PAT loss of
INR234m primarily due to loss-making Kaya business. The lower
consolidated tax rate is also attributable to: (a) Vietnam
subsidiary being entitled to 50% tax reduction on its profits till
2014 (reported PBT of INR231m and PAT of INR197m in FY13), (b)
Egyptian subsidiary exempted from tax till Dec 31, 2016 (reported
turnover of INR811m and PBT/PAT of INR167m in FY13).
Effective tax rate for certain consumer
companies is much lower v/s standard
tax rates of specified geographies owing
to various tax exemptions
Tax exemptions/structuring prevalent
across international subsidiaries
Tax rates are likely to increase going
forward with some of these exemptions
expiring/quantum reducing
Ashish Gupta ([email protected]); +91 22 3982 5544
Consolidated tax rate of Indian consumercompanies with domestic operations (%)
Consolidated tax rate of Indian consumercompanies with meaningful internationaloperations (%)
* management guidance of tax rates
* *
* *
28 February 2014 2
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OUR APPROACH FOR ANALYZING TAX STRUCTURES We shortlisted companies having a market cap in excess of USD2b in our FMCG
coverage universe. Computed the effective consolidated tax rates for these companies. If the consolidated tax rate was significantly below the standard tax rates of
specified geographies, analysis was bifurcated into: Effective tax rate at the standalone entity level Tax rate for all subsidiaries aggregated (derived figure)
Analyzing reasons for lower tax rate at individual entity level, also involving study of global tax structures.
CONCLUSION OF OUR ANALYSIS An analysis of our FMCG coverage universe companies (above USD2b market cap) reveals that consolidated Effective Tax Rate (ETR) is lower than the standard tax rates of specified geographies for GCPL (17.5%), Dabur (19.3%), HUVR (24.2%), Colgate (25.1%), Marico (26.5%) and Pidilite (27.4%).
Indian consumer companies details for FY13 (INR b) Company name Standalone Subsidiaries (Derived) Consolidated
Turnover PBT PAT Tax rate (%) Turnover PBT PAT Tax rate (%) Turnover PBT PAT Tax rate (%)
Asian Paints 90 15 11 30.7 20 1 1 21.4 110 17 12 29.9 Colgate 32 7 5 25.1
Dabur 43 7 6 21.2 18 2 2 12.0 62 9 8 19.3 GCPL 36 6 5 19.3 28 4 3 14.6 64 10 8 17.5 GSK Consumer 32 6 4 32.7
HUVR 258 50 38 23.4 12 1 0 60.5 270 51 38 24.2 ITC 299 107 74 30.6 17 4 3 34.7 316 111 77 30.7 Marico 34 5 4 20.8 12 0 0 Loss 46 6 4 26.5 Nestle India 83 16 11 31.2
Pidilite 33 6 5 25.6 3 0 0 Loss 37 6 4 27.4 United Spirits 86 5 3 33.7 21 -4 -4 Loss 107 1 -1 Loss
Source: Company annual report, MOSL
Indian consumer companies details for FY12 (INR b) Company name Standalone Subsidiaries (Derived) Consolidated Turnover PBT PAT Tax rate (%) Turnover PBT PAT Tax rate (%) Turnover PBT PAT Tax rate (%) Asian Paints 80 14 10 29.7 17 1 1 31.8 96 15 10 29.8 Colgate 27 6 4 24.1
Dabur 38 6 5 21.1 15 2 2 11.1 53 8 6 18.5 GCPL 30 8 6 20.4 19 2 1 32.7 49 10 8 23.1 GSK Consumer 28 5 4 34.3
HUVR 221 35 27 22.4 13 2 1 28.8 234 36 28 22.7 ITC 251 89 62 30.7 14 3 2 40.9 265 92 63 31.0 Marico 30 4 3 15.7 10 0 0 Loss 40 4 3 19.5 Nestle India 75 14 10 30.7
Pidilite 28 4 3 24.7 3 0 0 Loss 31 4 3 25.4 United Spirits 76 5 3 32.0 17 -2 -2 Loss 92 3 2 44.2
Source: Company annual report, MOSL
28 February 2014 3
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A) STANDALONE TAX STRUCTURE Standalone tax rate for the above highlighted companies is lower than the
standard domestic corporate tax rate of 34% (including surcharge and cess) due to manufacturing unit(s) of these companies being located in backward areas which make them eligible for exemptions under income tax.
However, these tax exemptions are available for specified period of time and will expire for certain manufacturing locations.
Standalone tax rate of Indian consumer companies inching up in FY13, except GCPL
Source: Company annual report, MOSL
As per management information, the following companies have tax exemptions
ending/reducing in quantum going forward: (a) Colgate will see its Baddi plant (in Solan district, HP) moving out of income-
tax and excise duty benefits from April 2015, resulting in higher tax rates FY16 onwards.
(b) Dabur will continue to pay tax as per the MAT rate (current MAT rate @ 21% of book profits) for the foreseeable future.
(c) GCPL will also continue to pay tax as per the MAT rate (current MAT rate @ 21% of book profits) for the foreseeable future.
(d) HUVR will see its major units of Haridwar and Baddi (in Solan, HP) move out of income-tax exemptions completely (from current 30% exempted profits).
(e) Marico’s Dehradun plant will go out of income tax and excise benefits completely in FY17; currently it enjoys 30% exemption. Paonta Sahib, Himachal Pradesh will move into 30% exemption (from current 100%) in FY15 and Baddi, HP in FY16.
Refer Annexure A for company-wise manufacturing
locations and Annexure B, C and D
for details on income tax exemptions rules
28 February 2014 4
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B) SUBSIDIARIES TAX STRUCTURE Of the above companies, only Dabur, GCPL and Marico have meaningful
subsidiaries (more than 20% of consolidated turnover from subsidiaries). Dabur India Lower tax rate is the result of majority of subsidiary profits being routed through
UAE, a free-trade zone. Dabur International has a turnover of INR6.7b with PAT and PAT of ~INR1b in FY13 (FY12: Turnover – INR4.8b; PBT and PAT – INR0.6b).
Also, two subsidiaries – Namaste Laboratories LLC (turnover of INR5.0b and PBT/PAT of INR0.3b in FY13) and Dermovia Skin Essentials INC (turnover of INR0.5b and PBT/PAT of INR0.4b in FY13) which are incorporated in the US, have 0% tax on their profits contributing to lower subsidiary tax rate. Normal tax rates in the US are 40%.
Dabur subsidiaries (INR m)
Name of subsidiaries FY12 FY13
Turn-over
PBT PAT Tax rate
Turn-over
PBT PAT Tax rate
Country of incorporation
Tax rates for countries
DOMESTIC H & B Stores Ltd 435 -116 -116 0.0 620 -83 -83 0.0 India Loss-making, hence no tax
OVERSEAS Dabur International Ltd 4,812 644 644 0.1 6,655 993 992 0.1 UAE Free trade zone - 0%
Namaste Laboratories LLC 5,503 663 687 -3.6 4,991 299 299 0.0 US Normally, companies are liable for 40% tax rate
Dabur Nepal Pvt Ltd 4,292 4 -1 120.5 4,625 265 217 17.9 Nepal
Standard corporate tax rate is 25%. However, certain exemptions are available on fulfilment of certain conditions
Naturelle LLC 2,252 8 8 0.0 3,346 13 13 0.0 UAE Free trade zone - 0%
Dabur Egypt Ltd 1,473 252 202 19.7 1,922 338 244 27.9 Egypt Domestic corporate tax rate @ 25%
RA Pazarlama 1,159 18 16 15.8 1,519 -6 -9 Loss Turkey Corporate tax rate of 20% Hobi Kozmetik 1,122 59 45 24.0 1,453 162 130 19.8 Turkey Corporate tax rate of 20%
Asian Conumer Care Pvt Ltd 471 14 11 19.4 806 104 62 40.3 Bangladesh Unlisted companies in Bangladesh are taxed @ 37.5%
African Consumer Care Ltd 494 50 49 1.4 553 57 57 0.0 Nigeria Corporate tax rate is 30%
Dermovia Skin Essentials INC 481 401 236 41.2 461 366 366 0.0 US Normally, companies are liable for 40% tax rate
Source: Company annual report, MOSL
Godrej Consumer Products Lower tax rate in subsidiaries is primarily due to tax-free profits at Indovest
Capital, subsidiary domiciled in Labuan territory of Malaysia. Indovest Capital has a turnover of INR1.8b with PBT and PAT of INR1.7b in FY13.
This has increased from PAT of INR304m in FY12 on a turnover of INR311m. As explained by management, the subsidiary owns the trademarks for brands
sold in Indonesia, and the turnover includes royalty received from Indonesian subsidiaries, which is eliminated on the consolidated level.
Subsidiaries (calculated) tax rate (%): GCPL shows sharp dip in FY13; Dabur stable
Note: Related party transactions have not been eliminated; Marico has net
loss, hence, not included above
11
33
1215
Dabur GCPL
FY12 FY13
28 February 2014 5
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Indonesian subsidiaries taxation structure
Source: Company, MOSL
An African subsidiary, Lorna Nigeria had a PBT of INR35m for FY13, however,
generated PAT of INR200m. As explained by management, subsidiary has received tax refund for previous years resulting in higher PAT. The subsidiary has a pioneer tax status, resulting in 0% corporate income tax for 5 years. Standard corporate tax rate in Nigeria is 30%.
Hair Trading (offshore) S. A. L incorporated in Lebanon has profits of ~INR400m in FY13 (FY12: INR11m) with 0% tax. Standard corporate tax rate in Lebanon is 15%.
In addition to this, the company also has tax exemptions in the Mozambican subsidiary, Weave Mozambique Limitada.
28 February 2014 6
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GCPL subsidiaries (INR m) Name of subsidiaries FY12 FY13
Turn-
over PBT PAT
Tax rate
Turn-over
PBT PAT Tax
rate Country of
incorporation Tax rates for countries
PT Intrasari Raya
9,770
20
14
28.6
12,454
50
58 -17.1 Indonesia Corporate tax rate is 25%
PT Megasari Makmur
7,606
678
461
31.9
10,197
1,156
804 30.5 Indonesia Corporate tax rate is 25%
Laboratoria Cuenca
1,979
165
103
37.5
3,074
162
100 38.2 Argentina Corporate tax rate is 35%
Keyline Brands Limited (UK)
2,220
168
110
34.7
2,793
215
155 28.0 U.K.
Corporate tax rate reduced for 26% in FY12 to 24% in FY13. It will be further reduced to 23% in FY14, 21% in FY15 and 20% thereafter
Subinite (Pty) Ltd.
1,139
128
92
28.0
2,048
68
49 28.1 South Africa Corporate tax rate is 28%
Hair Trading (offshore) S. A. L
34
11
11 -
1,939
399
399
0.0 Lebanon Tax rate @15%. Various incentives are granted for eligible investments
Lorna Nigeria 1,194 476 317 33.3 1,912 35 200 -478.6 Nigeria
Company has received tax credit for prior year's tax in FY13. Pioneer tax status, resulting in 0% corporate income tax for 5 years. Standard corporate tax rate is 30%.
Cosmetica Nacional - - -
1,836
80
60
25.3 Chile Corporate tax rate is 20%
Indovest Capital
311
304
304
0.1
1,800
1,691
1,691 0.0 Malaysia
Domestic corporate tax rate @ 25%. Profit includes royalty income from other subsidiar(y) /(ies) which gets eliminated on consolidation
Weave Mozambique Limitada
536
226
152
32.7
1,444
398
390 2.0 Mozambique
Corporate tax rate is 32%. However, it is also a free-trade zone resulting in lower taxes
Godrej South Africa (Pty) (earlier known as Rapidol (Pty))
1,057
255
183
28.0
1,083
248
178
28.0 South Africa Corporate tax rate is 28%
Style Industries Limited - - -
1,043
137
90
33.8 Kenya
Corporate tax rate @ 30%. For branches @ 37.5%. However, there are several exemptions available subject to certain conditions
Argencos SA
852
46
40
14.1
731
(24)
(17) Loss Argentina Corporate tax rate is 35%
Godrej Household Products (Bangladesh) Pvt. Ltd.
474
(36)
(39) Loss
600
(33)
(36) Loss Bangladesh
Loss-making company, hence no tax
Godrej Nigeria Ltd.
470
29
25
15.4
488
24
16 34.8 Nigeria Corporate tax rate is 30%
Source: Company annual report, MOSL
Marico The Vietnamese subsidiary, International Consumer Products, generates PBT of
INR231m in FY13 (4% of consol PBT), and is eligible for tax reduction. This reduction is likely to end in 2014.
Egyptian subsidiary is exempted from tax till Dec 31, 2016 (reported turnover of INR811m and PBT/PAT of INR167m in FY13).
28 February 2014 7
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Marico subsidiaries (INR m) Name of subsidiaries FY12 FY13
Turnover
PBT PAT Tax rate Turnover
PBT PAT Tax rate
Country of incorporation
Tax rates for countries
Marico Bangladesh Limited 3,749 436 333 23.7 4,253 813 603 25.9 Bangladesh
Domestic corporate tax rate @ 24.75%
International Consumer Products
1,448 131 30 77.0 2,004 231 197 14.7 Vietnam
For manufacturing activities, Company has to pay tax @15% of taxable profits for 12 years starting from its commercial operations and @ 25% for the years thereafter. For other activities, Company pays @25%. Company is entitled to tax exemption for 3 years commencing with the first year of making profits, and 50% reduction for following seven years. The Company made its initial profit in 2004.
Kaya Limited 1,296 -30 -29 1.0 1,433 -298 -298 0.0 India Loss-making company, hence no tax
Kaya Middle East FZE 902 -440 -440 0.0 1,153 -185 -185 0.0 UAE Loss-making company, hence no tax
Marico Middle East FZE 2,092 -10 -10 0.0 1,036 -552 -552 0.0 UAE Loss-making company, hence no tax
Marico South Africa (Pty) Limited
1,043 12 8 33.1 962 1 -2 250.0 South Africa
Corporate tax rate is 28%. However, no provision for tax has been made because of carried forward loss of ~INR80m
Marico Egypt Industries Company
605 80 80 0.0 811 167 167 0.0 Egypt
Domestic corporate tax rate @ 25%. However, company is exempted from tax from Jan 1, 2007 till Dec 31, 2016.
Halite Personal Care India Private 737 121 94 22.1 India Domestic corporate tax rate @ 34%
Source: Company annual report, MOSL
28 February 2014 8
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ANNEXURE A: Location of major manufacturing plants of Indian FMCG companies
HINDUSTAN UNILEVER PIDILITE DABUR 1. Solan, Himachal Pradesh 1. Mahad, Maharashtra 1. Baddi, Himachal Pradesh 2. Rajpura, Punjab 2. Panvel, Maharashtra 2. Pantnagar, Uttaranchal 3. Haridwar, Uttarkhand 3. Taloja, Maharashtra 3. Sahibabad, Uttar Pradesh 4. Etah, Uttar Pradesh 4. Vapi, Gujarat 4. Jammu, Jammu & Kashmir
5. Jalaun, Uttar Pradesh 5. Surat, Gujarat 5. Silvassa, Dadra & Nagar
Haveli 6. Sumerpur, Uttar Pradesh 6. Daman, Daman & Diu 6. Nasik, Mahrashtra
7. Tinsukia, Assam 7. Kala Amb, Himachal
Pradesh 7. Alwar, Rajasthan 8. Haldia, West Bengal 8. Baddi, Himachal Pradesh 8. Katni, Rajasthan
9. Kolkatta, West Bengal 9. Secunderabad, Andhra
Pradesh 9. Narendrapur, Rajasthan 10. Bangalore, Karnataka
10. Pithampur, Rajasthan
11. Mangalore, Karnataka
11. Newai, Rajasthan 12. Mysore, Karnataka
12. Siliguri, West Bengal
13. Chennai, Tamilnadu
14. Hosur, Tamilnadu
15. Hyderabad, Andhra Pradesh
16. Cochin, Kerala
17. Pondicherry
18. Chhindwara, Madhya Pradesh
19. Chiplun, Maharashtra
20. Buldhana, Maharashtra
21. Mumbai, Maharashtra
22. Nasik, Maharashtra
23. Goa
24. Silvassa, Dadra & Nagar
Haveli
COLGATE MARICO GODREJ CONSUMER
PRODUCTS 1. Aurangabad,
Maharashtra 1. Pallakad, Kerala 1. Kathua, Jammu & Kashmir 2. Solan, Himachal
Pradesh 2. Jalgaon, Maharashtra 2. Baddi, Himachal Pradesh 3. Goa 3. Goa 3. Namchi, Sikkim 4. Pondicherry 4. Guwahati, Assam 5. Dehradun, Uttaranchal 5. Rebhoi, Meghalaya
6. Paonta Sahib, Himachal
Pradesh 6. Bhind, Madhya Pradesh 7. Baddi, Himachal Pradesh 7. Goa 8. Erode, Tamil Nadu 8. Pondicherry
9. Mannadipet Commune
10. Karaikal, Tamil Nadu
11. Maraimalainagar, Tamil
Nadu
Note: Bold indicates exempted units Source: Company annual report, MOSL
28 February 2014 9
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ANNEXURE B: States specified under income tax for claiming exemptions of 100% profit for first 5 years and 30% profit for next 5 years for units set up between April 1993 and March 2004 States 1. Arunachal Pradesh 2. Assam 3. Goa 4. Himachal Pradesh 5. Jammu and Kashmir 6. Manipur 7. Meghalaya 8. Mizoram 9. Nagaland 10. Sikkim 11. Tripura 12. Andaman and Nicobar Islands 13. Dadra and Nagar Haveli 14. Daman and Diu 15. Lakshadweep 16. Pondicherry
28 February 2014 10
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ANNEXURE C: Districts specified for claiming exemption of 100% profit for first 5 years under Category A / 3 years under Category B and 30% profit for next 5 years for units set up between October 1994 and March 2004
CATEGORY ‘A’ CATEGORY ‘B’ District State District State District State Godda Bihar Srikakulam Andhra Pradesh Ghazipur Uttar Pradesh Gumla Bihar
Mahbubnagar Andhra Pradesh Ballia Uttar Pradesh
Araria Bihar
Katiyar Bihar Jaunpur Uttar Pradesh Gadchiroli Maharashtra
Bhagalpur Bihar Sitapur Uttar Pradesh
Madhepura Bihar
Gopalganj Bihar Jalaun Uttar Pradesh Sidharthanagar Uttar Pradesh
Darbhanga Bihar Unnao Uttar Pradesh
Dumka Bihar
West Champaran Bihar Faizabad Uttar Pradesh Mandla Madhya Pradesh
Saran Bihar Kanpur Dehat Uttar Pradesh
Khagaria Bihar
Bhojpur Bihar Mainpuri Uttar Pradesh Kishanganj Bihar
Samastipur Bihar Gonda Uttar Pradesh
Malda West Bengal
Deoghar Bihar Farukhabad Uttar Pradesh Palamau Bihar
Nalanda Bihar Sultanpur Uttar Pradesh
Phulbani Orissa
Gaya Bihar Mirzapur Uttar Pradesh Madhubani Bihar
Muzaffarpur Bihar Mau Uttar Pradesh
Kalahandi Orissa
Rohtas Bihar Purulia West Bengal Jehanabad Bihar
Bankaskantha Gujarat Birbhum West Bengal
Saharsa Bihar
Sabarkantha Gujarat Midnapore West Bengal West Dinajpur West Bengal
Bidar Karnataka
Nawadah Bihar
Seoni Madhya Pradesh Bahraich Uttar Pradesh
Tikamgarh Madhya Pradesh
Sitamarhi Bihar
Shivpuri Madhya Pradesh Sahebganj Bihar
Balaghat Madhya Pradesh
Murshidabad West Bengal
Jhabua Madhya Pradesh Cooch Behar West Bengal
Sidhi Madhya Pradesh
Bankura West Bengal
Vidisha Madhya Pradesh Panna Madhya Pradesh
Raigarh Madhya Pradesh
Pratapgarh Uttar Pradesh
Morena Madhya Pradesh Maharajganj Uttar Pradesh
Betul Madhya Pradesh
Jalore Rajasthan
Rajgarh Madhya Pradesh Aurangabad Bihar
Rajnandgaon Madhya Pradesh
East Champaran Bihar
Sagar Madhya Pradesh Banda Uttar Pradesh
Beed Maharashtra
Barmer Rajasthan
Bolangir Orissa Purnia Bihar
Mayurbhanj Orissa
Bastar Madhya Pradesh
Balasore Orissa Siwan Bihar
Ganjam Orissa
Vaishali Bihar
Dungarpur Rajasthan Basti Uttar Pradesh
Dholpur Rajasthan
Sarguja Madhya Pradesh
Sawai Madhopur Rajasthan Chamoli Uttar Pradesh
Tonk Rajasthan
Jaisalmer Rajasthan
Nagaur Rajasthan Lohardagga Bihar
Jhalawar Rajasthan
Chhatarpur Madhya Pradesh
Sikar Rajasthan Uttarkashi Uttar Pradesh
Hardoi Uttar Pradesh
Churu Rajasthan
Lalitpur Uttar Pradesh Wayanad Kerala
Hamirpur Uttar Pradesh
Idukki Kerala
Badaun Uttar Pradesh Jalpaiguri West Bengal
Fatehpur Uttar Pradesh
Almora Uttar Pradesh
Azamgargh Uttar Pradesh Pithoragarh Uttar Pradesh
Etah Uttar Pradesh
Tehri Garhwal Uttar Pradesh
Barabanki Uttar Pradesh The Dangs Gujarat
Etawah Uttar Pradesh
Banswara Rajasthan Deoria Uttar Pradesh
Source: Income Tax Act, MOSL
28 February 2014 11
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ANNEXURE D: Specified products, for which manufacturing units set up in North East, Sikkim, Himachal Pradesh & Uttaranchal between December, 1997 and March, 2012 can claim exemption of 100% profit for first 5 years and 30% for next 5 years FOR THE NORTH-EASTERN STATES 1. Fruit and Vegetable Processing industries 2. Meat and Poultry Product industries 3. Cereal Based Product industries 4. Food and Beverage industries 5. Milk and milk based product industries 6. Food packaging industry 7. Paper products industry 8. Jute and mesta products industry 9. Cattle or poultry or fishery feed products industry 10. Edible Oil processing or vanaspati industry 11. Processing of essential oils and fragrances industry 12. Processing and raising of plantation cropstea, rubber, coffee, coconuts, etc. 13. Gas based Intermediate Products Industry 14. Agro forestry based industry 15. Horticulture industry 16. Mineral based industry 17. Floriculture industry 18. Agrobased industry FOR THE STATE OF SIKKIM 1. Eco-Tourism including Hotels, Resorts, Spa, Amusement Parks and Ropeways 2. Handicrafts and handlooms 3. Wool and silk reeling, weaving and processing, printing, etc 4. Floriculture 5. Precision Engineering including watch making 6. Electronics including computronics hardware and software and Information
Technology (IT) related industries 7. Food processing including Agro-based industries. Processing, preservation and
packaging of fruits and vegetables (excluding conventional grinding/extraction units)
8. Medicinal and aromatic Herbs-Plantation and Processing 9. Raising and processing of plantation crops, i.e., tea, oranges and cardamom 10. Mineral based industry 11. Pharma products 12. Honey 13. Biotechnology
28 February 2014 12
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FOR THE STATE OF HIMACHAL PRADESH AND THE STATE OF UTTARANCHAL 1. Floriculture 2. Medicinal herbs and aromatic herbs, etc., processing 3. Honey 4. Horticulture and agro-based industries 5. Food Processing Industry 6. Sugar and its by-products 7. Silk and silk products 8. Wool and wool products 9. Woven fabrics (Excisable garments) 10. Sports goods and articles and equipment for general physical exercise and
equipment for adventure sports/activities, tourism (to be specified, by notification, by the Central Government)
11. Paper and paper products 12. Pharma products 13. Information and Communication Technology Industry, Computer hardware, Call
Centres 14. Bottling of mineral water 15. Eco-tourism including hotels, resorts, spa, entertainment/amusement parks and
ropeways 16. Industrial gases (based on atmospheric fraction) 17. Handicrafts 18. Non-timber forest product-based industries
28 February 2014 13
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N O T E S
28 February 2014 14
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Disclosure of Interest Statement COMPANIES WHERE THERE IS INTEREST 1. Analyst ownership of the stock No 2. Group/Directors ownership of the stock Marico, Nestle India 3. Broking relationship with company covered No 4. Investment Banking relationship with company covered No
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