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ABOUT HIMALAYA

1930 - Mr. M. Manal formed The Himalaya Drug Company. His vision:Put Ayurveda on par with modern medicine.

1932 - His elder brother, Mr. M. Misal, joined him a few years later

and they set about building the company together.

1934 - Launch of Serpina, the world's first anti- hypertensive drug, derivedfrom Rauwolfia serpentina

1950 - Dr. Roshan M. Captain, Ph.D., joins the company and spear headsresearch and development.

1955 - Liv.52, a hepatoprotective, is launched and goes on to become one ofthe world's top-selling drugs.

1965 - Mr. Karstein, a German pharmaceutical consultant, directs thecompany's focus towards allopathic medical practitioners.

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1975 - An advanced manufacturing facility is set up in Bangalore. The facility

grows to become the corporate headquarters.

1991- The company's R&D center moves to Bangalore. Research and development

becomes a very important aspect of the company's focus.

1996 - The company opens its US office at Houston, Texas.

1998 - The Animal Health Product range for commercial livestock is launched.

1999 - Himalaya Herbals launches its personal healthcare products in India.

2000 - The company launches a special range for pets called the Companion Care

range.

2001 - The company adopts a new unified brand identity

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2003 - ISO 9001: 2000 certification awarded for design, manufacture and marketing of

herbal health care products.

2005 - Himalaya celebrates seventy-five years.

2006 - UK-based National Quality Assurance gives Himalaya ISO-14001:2004

certification for environment management.

2008 - Soliga Forest Honey, a Certified USDA Organic honey sourced from the forests

of South India, is launched. Collected by the Soliga Tribe, the honey is sourced by

Himalaya at a fair trade price.

2009 - Introduction of Organique by Himalaya, a range of personal care products

formulated with organic herbs and oils.

2010 - Liv.52 HB, the worlds first herbal drug for the effective management of

Hepatitis B, is introduced.

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HIMALAYA PRODUCTS

Himalaya includes 3 major categories of products:-

1. Pharmaceutical

2. Personal care

3. Animal Health

In pharmaceutical - Childrens health, Mens Health, Womens health, General

Health.

E.g.- Bonnisan - Keeps babies health and happy, Bresol The breathing solution

In Personal care - Olive oil, Antidandruff hair cream, Soap free face wash, Dentalcream, Antiseptic cream, Hair detangler & conditioner.

E.g. - Dental pack, Clarifying mudpack, Fairness cream

In Animal health - Live-52vet, Him-c, Liv-52 Protec, Anxocare.

E.g. - Him-c - Natural source of Vitamin c

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USP The USP of this brand is its focus on scientific research with an

emphasis on the need to validate traditional Ayurveda.

The forests of India are situated in lands far removed from theills of urban life. Nature's goodness is found in abundance

here. In the herbs. In the flowers.

Himalayas USP in Russia will be its extensive product

portfolio, rare ingredients used in our formulations and above

all else the science and research backing each and every

product.

Adding that the new drugs contain natural phyto estrogens

tested to have no side effects at all.

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Types of Foreign Exchange Exposure

Changes in exchange rates can effect firm value through:

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Example

A Taiwanese company has the following USD exposures:1. Owns a factory in Texas worth US$5 million.

2. Agreement to buy goods worth US$2 million.

3. Biggest competitor is a US company.

What happens if the dollar appreciates?

1. $ value of US factory goes down (translation).

2. $ cost of buying goods goes down (transaction).

3. Global competitiveness of Taiwanese company

decreases (operating).

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Translation exposure, also called accounting exposure, arisesbecause financial statements of foreign subsidiaries whichare stated in foreign currency must be restated in theparents reporting currency for the firm to prepareconsolidated financial statements.

Translation exposure is the potential for an increase ordecrease in the parents net worth and reported net incomecaused by a change in exchange rates since the lasttranslation.

The accounting process oftranslation, involves convertingthese foreign subsidiaries financial statements into homecurrency-denominated statements.

Translation Exposure

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Two basic methods for the translation of foreignsubsidiary financial statements are employed worldwide:

The current rate method

The temporal method

Regardless of which method is employed, a translationmethod must not only designate at what exchange rateindividual balance sheet and income statement items areremeasured, but also designate where any imbalance is to

be recorded (current income or an equity reserveaccount).

Translation Methods

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The current ratemethodis the most prevalent inthe world today.

Assets and liabilities are translated at the current rateof exchange.

Income statement items are translated at the exchangerate on the dates they were recorded or anappropriately weighted average rate for the period.

The biggest advantage of the current rate method is

that the gain or loss on translation does not passthrough the income statement but goes directly to areserve account (reducing variability of reportedearnings).

Current Rate Method

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Under the temporal method, specific assets aretranslated at exchange rates consistent with thetiming of the items creation.

This method assumes that a number of individual lineitem assets such as inventory and net plant andequipment are restated regularly to reflect marketvalue.

Gains or losses resulting from remeasurement arecarried directly to current consolidated income, and

not to equity reserves (increased variability ofconsolidated earnings).

Temporal Method

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If these items were not restated but were instead carriedat historical cost, the temporal method becomes themonetary/non-monetarymethod of translation.

Monetary assets and liabilities are translated at currentexchange rates.

Non-monetary assets and liabilities are translated athistorical rates.

Income statement items are translated at the averageexchange rate for the period.

Dividends (distributions) are translated at the exchange rateon the date of payment.

Equity items are translated at historical rates.

Monetary / Non-monetary Method

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The main technique to minimize translation exposure iscalled a balance sheet hedge.

A balance sheet hedge requires an equal amount ofexposed foreign currency assets and liabilities on a firmsconsolidated balance sheet.

If this can be achieved for each foreign currency, nettranslation exposure will be zero.

These hedges are a compromise in which thedenomination of balance sheet accounts is altered,perhaps at a cost in terms of interest expense or operatingefficiency, to achieve some degree of foreign exchangeprotection.

Managing Translation Exposure

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Transaction Exposure

Transaction exposuremeasures changes in the valueof outstanding financial obligations incurred prior to

a change in exchange rates but not due to be settled

until after the exchange rates change.

Thus, this type of exposure deals with changes in

cash flows that result from existing contractual

obligations.

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Sources of Transaction Exposure

Transaction exposure arises from: Purchasing or selling on credit goods or services whose

prices are stated in foreign currencies.

Borrowing or lending funds when repayment is to bemade in a foreign currency.

Being a party to an unperformed foreign exchange

forward contract.

Otherwise acquiring assets or incurring liabilities

denominated in foreign currencies.

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Transaction Exposure Example

Suppose a U.S. firm, Trident, sells merchandise on

account to a Belgian buyer for:

1,800,000 payment to be made in 60 days.

S0 = $0.9000 per

The U.S. seller expects to exchange the 1,800,000

for $1,620,000 when payment is received.

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Transaction Exposure Example

Transaction exposure arises because of the risk that the

U.S. seller will receive something other than

$1,620,000.

If the euro weakens to $0.8500/, then Trident will

receive $1,530,000 If the euro strengthens to $0.9600/, then Trident

will receive $1,728,000

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THANK YOU