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  • L T Food s L im i t ed Annua l R epo r t 2013 - 14

    starts

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  • ContentsCorporate Overview

    Business Overview 02

    Financial Highlights 08

    Chairmans Message 10

    Message from the CEO 12

    Management Reports

    Management Discussion & Analysis 22

    Directors Report 29

    Corporate Governance Report 37

    Financial Statements

    Standalone Financial Statements 49

    Consolidated Financial Statements 81

    Forward-looking statementsIn this annual report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment de-cisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. We have tried wherever possible to identify such statements by using words such as anticipate, estimate, expect, project, intend, plan, believe and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should under-lying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

  • 1

    LT Foods story is that of Dreams

    In a nutshell, LT Foods story is one that says

    Tomorrow Starts Today!

    dreams From a single rice-processing unit to a global branded food Company.envision From a promoter-driven to a professionally - managed Company.

    growth From annual revenues of Rs.200 crores in the early 90s to a growth more than12 times today.

    potential realized From one brand to many and from rice to newly piloted snacks and staplesand all that has made LT Foods a global success story today. It is basis this spirit to keep innovating, diversifying, exploring new possibilities and impacting lives that is driving LT to pursue that Tomorrow Starts Today not only for itself but for its entire stakeholder universe.

  • 2

    LT Foods at a glance

    Incorporated in 1990, LT Foods is fast emerging as a global branded foods company with Annual Revenues

    of ` 2493 crores (FY 14). Having built an unbeatable leadership in high quality basmati rice over the

    last two and a half decades, Company drives more than 85% of its revenues from basmati rice segment.

    Companys sharp focus and methodical shift towards branded basmati rice over the last 50 years has led

    to a vibrant bouquet of six core brands and brand extensions which together contribute a dominant 70% to

    companys revenues from the rice segment. Two of its basmati rice brands; Daawat and Royal are market

    leaders in India and the USA respectively and are valued at over USD 100 million each. The other brands

    are Devaaya, Heritage, Rozana and Chefs Secretz.

    The Company, post developing a healthy name for it in rice has now started to develop a healthy non-rice

    revenue through organic food, ready-to-eat snacks and staples. Its non-rice business portfolio comprises of

    two brands MyMy, and Devaaya. The company has made pioneering foray, couple of years back into

    grain storage business in partnership with Punjab government and operates a modern granary facility with

    storage capacity of 50,000 MT in Amritsar, Punjab.

    Vision Customer Delight through Value Added Agri-business

    Mission

    To deliver value to the customer, be profitable and establish leadership in core markets

    To command top of mind recall with the customer by ensuring effective brand promotion strategies

    Invest in research & development activities to deliver even better products and always stay ahead

    Focus on increasing global footprint by venturing into newer markets and at the same time forge fruitful

    alliances with entities operating within the same domain

  • 3

    Annual Report 2013-14

    Corporate Overview Management Reports Financial Statements

    LT Foods Values

    Customer Centricity

    Passion for ExcellenceInnovation

    OwnershipBusiness Ethics

    Revenue mix by BrandsRevenue mix by geography

    India 41%

    ROW 6%

    Middle East 15%

    North America

    39%

    Royal 38%

    Devaaya 3%

    Daawat 41%

    Others 8%

    Heritage 10%

  • 4

    Manufacturing Facilities

    With a total rice milling capacity of 67 TPH, LT Foods has 5 state of the art manufacturing facilities based out of Haryana

    (Sonepat, Kamaspur), Punjab (Varpal, Amritsar) and Madhya Pradesh (Bhopal). In addition the Company has modern

    packaging facilities in Houston and California in USA.

    Key Strengths

    Farm-to-fork coverage ensures responsible sourcing, absolute control on product quality and direct engagement with customers

    Distribution approach of forging long-term partnership has led to an enviable network of 450 distributors and 1,10,000

    retail points and exports to over 60 countries

    One of the most professional Indian food companies with an empowering internal culture and openness to external consulting

    and training in niche areas

    Uniquely positioned among peers with thought leadership in propagation of organic farming, modern granary and spread

    of basmati cultivation to Madhya Pradesh

    SouthAmerica

    Africa

    Australia

    USA

    Mauritius

    New Zealand

    Singapore

    Kuwait

    Switzerland

    Russia

    Israel

    Spain

    Iraq

    Belgium

    Cyprus Portugal

    Canada

    Italy

    UK

    Mexico

    Brunei

    Iran

    France

    Sri Lanka

    Syria

    Indonesia

    Conakry

    SaudiArabia

    Yemen Trinidad

    Egypt Algeria Morocco

    Senegal

    Togo Ghana Uganda

    Zimbabwe

    Mozambique

    Sierra Leone

    Botswana

    Angola

    India

    UAE

    Facility Capacity Area Specialization

    Bahalgarh, Sonepat 33 TPH 42 acres Processing of raw rice

    Kamaspur, Sonepat 5 TPH 9 acres Produces Organic rice

    Mandideep, Bhopal, Madhya Pradesh 12.5 TPH 56 acresValue-added products like para-boiled rice, health snacks, grains, flour etc.

    Varpal, Punjab 12 TPH 27 Acres Raw and par-boiled rice

    Amritsar, Punjab 2 TPH 4 acres Raw and par-boiled rice

  • 5

    Annual Report 2013-14

    Corporate Overview Management Reports Financial Statements

    Quality & Food Safety Certifications:

    LT Foods is committed to providing safe and superior quality products to its valued customers. In pursuance, the Company installed

    robust quality and food safety systems at all of its plants duly certified by the well acclaimed international certification agencies.

    The Company makes ardent efforts to maintaining and improving the food safety systems to measure upto the upgraded version of

    international standards. The various accreditations on quality and food safety systems acquired for the plants under the Company,s

    umbrella are featured hereafter:

    All the Food Safety standards are based on HACCP, GHP and GMP formats.

    Plant Certification

    LT Foods Ltd. Bahalgarh - Sonepat ISO 9001 : 2008 (Qualiy Management System) ISO 14000 : 2004 (Environment Management System) SQF (Safe Quality Foods version-7.1) BRC Global Standard for Food Safety version-6 Kosher Certification (OU)

    Nature Bio-Foods Ltd. (Organic Division)

    Daawat Foods Ltd. Kamaspur, Sonepat

    ISO 22000 : 2005 (Food Safety Standard) NOP (National Organic Programme) of USFDA Organic Standard NPOP (National Programme for Organic Production) EEC 837:2007 (Europe Organic Standard) Kosher Certification from JK Kosher

    Daawat Foods Ltd. Mandideep,

    near Bhopal (MP)

    Rice Plant FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1) Food Plant FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1) Grain Plant - BRC Global Standard for Food Safety version-6 Grain Plant - FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1)

    LT Foods Ltd. Varpal, Amritsar FSSC 22000 : 2010 (Inclusive ISO:22000 & ISO/TS 22002-1) BRC Global Standard for Food Safety version-6

    LT Foods Laboratory, Bahalgarh - Sonepat National Accreditation Board For Laboratory (NABL) ISO/IEC 17025:2005 for Chemicals (Certificate No. T-2613)

    Mr. V. K. Arora, CMD receiving the prestigious IFC award in Washington

  • 6

    Product OfferingsBasmati Rice: LT Foods basmati rice business accounts for 70% of its overall revenue today. Significant

    digression from unbranded business to branded basmati has led to better realization and strong brand

    visibility. The branded share in total revenues has gone up to 70% from 50% in the last year. Today, the

    branded basmati rice commands a healthy 15% share in Indian market. Numerous variants and brands

    of basmati rice are exported to over 60 countries across North America, Asia Pacific, Europe and the

    Middle East regions.

    Healthy Snacks: Company has successfully extended its branded food business into ready-to-eat

    snacks with pilot launch of rice based chips, crisps and mixes in multiple flavour variants

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