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a premium brand and a leader in its category, is one of the flagship brands and a
popular name in the natural personal care space.
a tasty fun-filled digestive available in various forms - from tablets, traditional Churnas
to modern formats like centre-filled candy - appealing to all age groups.
country’s leading brand of packaged fruit juices, provides the largest range of refreshing
and healthy fruit juices that are 100 percent natural and free of preservatives.
a relative new member in the family of Dabur’s key brands, provides a range of herbal
and natural products across various FMCG categories with a focus on providing quality
and affordability.
BOARD OF DIRECTORS
Dr Anand Burman Chairman
Mr Amit Burman Vice Chairman
Mr Pradip Burman Director
Mr Mohit Burman Director
Mr P D Narang Director
Mr Sunil Duggal Director
His Highness Maharaja Gaj Singh Director
Mr R C Bhargava Director
Mr P N Vijay Director
Dr S Narayan Director
Auditors
M/s G. Basu & Co.
Chartered Accountants
8.0%
6.0%
4.0%
2.0%
0.0%
02-03, Q2
02-03, Q3
02-03, Q4
03-04, Q1
03-04, Q2
03-04, Q3
03-04, Q4
04-05, Q1
04-05, Q2
04-05, Q3
04-05, Q4
05-06, Q1
05-06, Q2
05-06, Q3
05-06, Q4
06-07, Q1
06-07, Q2
06-07, Q3
06-07, Q4
07-08, Q1
02-03 Q1
In fact, it is only in April-June 2007 that after eight consecutive due to a significant slow down in the consumer durables
quarters of over 6% growth, private consumption expenditure segment. The consumer durables segment, which had grown
growth fell to 5.6%. While the growth reduction is marginal, by a whopping 16.1% in April-August 2006, has actually
there are some indications that suggest a further fall in the witnessed a reduction in production by 2.3% for the
second quarter. Data, for the supply side of the economy, corresponding period in 2007. On the other hand, growth in
which is more recent, does point at this direction. For the the consumer non-durables segment, which comprises largely
period April-August, production data based on the index of of FMCG products, has reduced only marginally from 9.8% in
industrial production (IIP) show a drop in growth of consumer April-August 2006 to 9.3% in the corresponding period in 2007.
goods from 11.4% in 2006-07 to 6.2% in 2007-08. While, indeed, Thus, market conditions remained favourable for players in
there has been a tapering of demand for consumer goods in the FMCG sector.
the first half of 2007-08, the impact of this on the FMCG industry This is further corroborated by retail audit data from the AC
has been minimal. Nielsen survey. The data suggests that some of the key
On segregating the consumer goods category into consumer segments within the FMCG sector – personal care products
durables and consumer non durables, one finds that the like shampoos, hair oils, toothpastes continued to grow at
relative slowdown in consumer goods has been almost entirely high rates both in terms of value and volume (see chart B).
4
Dabur India Limited • Half Yearly Financial Report 2007-08
25 Volume
Value
20 IBD 15%
15
Foods 12%
10
CHD 6%
CCD 67%
5
0
Hair Oils Shampoos Toothpastes
While volume growth has been impressive, it is even more Rs.172.7 crore in H1 2006-07 to Rs.210.6 crore in the
heartening to see that for most segments volume growth has corresponding period of 2007-08.
been eclipsed by growth in terms of value. This dual source • Profit after tax (PAT after extra-ordinary items and minority
of growth gives a fair indication of two clear facets of the interest) registered a growth of 25.2 % from Rs.126.9 crore
demand structure within the FMCG sector. in H1 2006-07 to Rs.158.8 crore in the corresponding period
On the one hand, companies are focusing on improved of 2007-08.
distribution systems to reach out and penetrate deeper into • Half yearly earnings per share rose from Rs.1.46 in H1 2006-
markets across India. On the other, they continue to leverage 07 to Rs.1.82 in the corresponding period of 2007-08.
the improved buying power of large sections of the Indian
On 11 July 2007, the Board of Directors of Dabur India Limited
population by providing higher value products that command
(DIL) approved the merger of its wholly owned subsidiary
a price premium in the market. For Dabur, who is one of India’s
Dabur Foods Limited (DFL) with itself. The merger will take
leading FMCG companies, it is imperative to focus its energies
effect from 1 April 2007. DFL, after the proposed merger, will
on both these facets.
become one of the business divisions of DIL alongside
In line with market demands, Dabur continuously upgrades Consumer Care Division (CCD) and Consumer Health Division
and optimises its distribution systems through initiatives like (CHD). DIL owns 100% of the outstanding shares of DFL, so
“Project DARE” to be able to push its products deeper into no new shares will be issued as a result of the merger.
markets across geographies. The company continues to
maintain its edge by leveraging its strong Ayurvedic lineage The merger with Dabur India would extract synergies and
and regularly introducing new products, improving existing unlock operational efficiencies for Dabur Foods. The
ones and providing unique value propositions for its customers integration will also help Dabur sharpen focus on the high
based on the health and wellness platform. These initiatives growth business of foods and beverages, and enter newer
are supported by a strong operational back-end and an efficient product categories in this space. Consequently, Dabur’s
manufacturing base. All these factors have contributed consolidated business will be operated through two entities
positively to the financial performance for the first half of 2007- – Dabur India Limited (DIL) and Dabur International Limited.
08, helping the company grow profitably. The highlights of DIL will operate through 3 divisions namely consumer-care
Dabur’s half-yearly results on a consolidated basis are: (CCD), Consumer-Health (CHD) and Foods, while the
International Business Division (IBD) will be housed in Dabur
• Sales grew by 15.9% from Rs.1039.6 crore in H1 2006-07 to
International Limited. For the purpose of this report Dabur
Rs.1205.2 crore in the corresponding period of 2007-08.
Foods Limited continues to be a separate subsidiary and its
• Operating profit (EBIDTA) increased by 21.9% per cent from numbers are not reflected in the stand-alone results of DIL
5
Management Discussion and Analysis
Health
20
17.1%
supplement 17%
Oral Care 25% 14.7% 14.1%
15
Digestives &
Candies 10% 9% 9.4%
10
Home
care 7%
Baby &
5
Hair care 34 %
skin care
7%
0 Hair Oral Health Digestives Home Baby &
care Care Supplement & Candies care skin care
during the half year ended 30th September 2007. products, is clearly the largest business division within Dabur.
CCD revenues grew by 14.6 % from Rs.706 crore to Rs.807
Chart C gives the contribution of each of these divisions to
crore during H1 2007-08. While the division has been
Dabur’s total consolidated revenues. There is also an “others”
favourably impacted by the overall growth in demand for FMCG
segment, which primarily includes non core intermediates
products in India, much of this growth has been fuelled by
business, whose share has reduced to below 0.5% of total
the focused initiatives on the distribution front through Project
consolidated revenues.
“DARE” and the ability of the company to differentiate itself
When compared to H1 2006-07, while CCD continues to and continuously provide value propositions to the customer
maintain its share there has been some churn in the other through introduction of new products, strategic product
businesses – the share of CHD has reduced from 8% to 6%, positioning and effective customer communication.
while that of IBD has increased from 13% to 15%. This is
The consumer care business portfolio can be divided into 6
primarily due to the differential rates of growth witnessed by
categories—hair care, oral care, health supplements,
these divisions in H1 2007-08.
digestives, skin and baby care, and home care. Chart D gives
In addition to these businesses, Dabur has announced its plan the relative contribution of these categories to CCD’s net sales.
to enter the retail business. The company plans to set up a While the relative contribution remains similar to 2006-07, there
chain of over 350 stores based on the “Health & Beauty” format has been a marginal increase in share of oral care and health
with an investment of around Rs.140 crore in a phased manner supplements.
till 2010. During H1 2007-08, on the retail front Dabur focused
Chart E shows that right across the spectrum of categories,
on setting up its back-end and organisational structure. The
Dabur’s CCD business registered healthy growth in revenues.
company has already appointed a Chief Executive Officer (CEO)
Barring hair-care, baby oils and skin care, which recorded
and other professionals who have rich global expertise in the
around 9% growth, the other categories witnessed double-
field of retail.
digit growth.
In the subsequent section we shall analyse the market
performance of the different divisions in greater detail. Hair Care
Consumer Care Division Hair Care continues to be the largest category in the CCD
portfolio. Within the category shampoo sales with a growth of
With a share of 67% of total consolidated revenues, the 16.8% outstripped the 7.3% growth in hair oils. Dabur’s
Consumer Care Division (CCD), which focuses on pure FMCG performance in hair oils has been a mixed bag. Dabur Amla,
6
Dabur India Limited Half Yearly Report 2007-08
Auditors’ Report
AUDITORS’ REPORT
We have audited the attached condensed Balance Sheet of Dabur India Limited as at 30th September, 2007 and its
Profit & Loss Account and the Cash Flow Statement for the half year ended on that date attached thereto. These
financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. These standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and
disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as, evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
i. We have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purpose of audit.
ii. In our opinion, proper books of accounts, as required by law have been kept by the Company so far as appears
from our examination of books of accounts.
iii. The Condensed Balance Sheet and Condensed Profit and Loss Account dealt with by this report are in agreement
with the books of accounts.
iv. Condensed Balance Sheet, Condensed Profit & Loss Account and Cash Flow Statement have been prepared in
due compliances of accounting standards referred to in sub section (3c) of Section 211 of Companies Act 1956.
v. In our opinion and according to the information and explanations given to us, the said accounts read with other
notes appearing in Schedule “A” give the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of Condensed Balance Sheet, of the State of Affairs of the company as at 30th September, 2007;
b) In the case of Condensed Profit and Loss Account, of the Profit for the half year ended on that date; and
c) In the case of cash flow statement, of the cash flows for the half year ended on that date.
S.LAHIRI
Partner
15
Half Yearly Report 2007-08 Dabur India Limited
Balance Sheet
I. Sources of Funds
1. Share Capital 8,640 8,629
2. Reserves and surplus 38,408 31,690
3. Loan funds
(a) Secured loans 1,533 1,928
(b) Unsecured loans 181 80
4. Deferred tax liability 2,314 2,264
Total 51,076 44,591
II. Application of Funds
1. Fixed Assets A-2.18
(a) Tangible fixed assets 40,124 39,119
(b) Intangible fixed assets 1,682 1,682
Gross Block (a+b) 41,806 40,801
Less: Depreciation 17,761 16,897
Net Block 24,045 23,904
2. Investments 19,988 14,535
3. Deferred Tax Assets 137 137
4. Currents assets, loans and advances A-2.19
(a) Inventories 19,340 15,737
(b) Sundry debtors 7,337 6,098
(c) Cash and bank balances 5,519 5,025
(d) Loans and advances 17,760 12,782
Sub Total (4) 49,956 39,640
5. Less: Current liabilities and provisions A-2.20
(a) Liabilities 27,412 27,769
(b) Provisions 17,504 7,838
Sub Total (5) 44,916 35,607
Net current assets (4-5) 5,040 4,033
6. Miscellaneous expenditure to the extent 1,866 1,982
not written off or adjusted
Total 51,076 44,591
Accounting policies & notes to accounts A
For Dabur India Ltd. As per our report of even date attached
New Delhi
24th October, 2007
16
Dabur India Limited Half Yearly Report 2007-08
Profit and Loss Account
New Delhi
24th October, 2007
17
Half Yearly Report 2007-08 Dabur India Limited
Cash Flow Statement
Rupees in lacs
Particulars For the period ended For the period ended
30th September, 2007 30th September, 2006
18
Dabur India Limited Half Yearly Report 2007-08
Cash Flow Statement
Rupees in lacs
Particulars For the period ended For the period ended
30th September, 2007 30th September, 2006
For Dabur India Ltd. As per our report of even date attached
New Delhi
24th October, 2007
19
Half Yearly Report 2007-08 Dabur India Limited
Schedules
1. ACCOUNTING POLICIES
Nature of liabilities Particular of dispute Amount Forum under the dispute is pending
VAT Short Payment of VAT 62.64 II appeal Filed
Sales Tax Classification of Lal Dant Manjan 24.32 Filed review application with High Court –
Sales Tax Classification of Gulabari 0.74 Appeal Filed before the D.C. Appeal
Sales Tax Excemption Forms from Dealers 1.08 IInd Appeal filed before D. C. Appeal
Entry Tax Entry Tax on Car 0.29 Appeal pending before D.C.
v) Company presumes remote risk possibility of further cash outflow pertaining to contingent liabilities
listed in para 5 (a) above.
20
Dabur India Limited Half Yearly Report 2007-08
Schedules
21
Half Yearly Report 2007-08 Dabur India Limited
Schedules
2.5 Since external and internal sources of information do not provide for any indication for impairment of fixed
assets based on cash generating unit concept, recoverable values of assets have not been determined for the
period as authorized by clause 6, AS-28 issued by ICAI.
2.6 The company has provided for deferred tax liability on estimated basis.
2.7. Board of directors has declared interim dividend @ Re.0.75 i.e., 75% (previous period Rs.1.00 i.e, 100%) for the
period, the amount of interim dividend working out to Rs. 7581 (previous period Rs. 6546) including incidence
of tax thereon.
2.8 During the period the company has allotted 11,22,980 (previous period 724982) equity share of Re 1/- each to
the employees upon their exercise of stock option.
2.9 5145074-(previous year 6124608) equity shares of Re.1/- each are outstanding under “Employees Stock Option
Scheme” as on 30th September, 2007.
2.10. Investment at half-year end includes Rs. 13110 (previous year Rs. 7962) towards current investment carried at
lower of cost and market value. Remaining investments, being long term in nature, are valued as per disclosure
made in preceding annual financial statement.
2.11 During the period company has invested Rs. 117799 in current investment and Rs. 305 in new Subsidiary “ H&B
Stores Ltd.”as long term investment.
2.12 During the period company has sold current investments amounting to Rs. 112651 and long term investment
amounting to 0.15.
2.13 During the period, the company has paid off Rs. 270 against PICUP trade tax loan scheme under the head
secured loan.
2.14 During the period, the company has granted unsecured advances of the nature of loan aggregating Rs. 3272 at
prevailing market interest rate to two subsidiaries.
2.15 Information (to the extent applicable) pursuant to AS 19 issued by ICAI: -
The future minimum lease payment under non-cancelable operating lease
30.09.2007 31.03.2007
Not later than 1 year 18 17
Later than 1 year not later than 5 years 9 8
Later than 5 years Nil Nil
2.16 Liabilities in respect of retirement benefits to employees, which includes gratuity, leave salary and Superannuation
fund have been provided on estimated basis.
Liability on account of employee related dues in terms of AS 15 (as revised) including annual accretion arising
on account of additional package selectively provided during current year will be accounted for at year end.
2.17 Information pursuant to AS 24 on discontinued operations:
Particulars Hair Oil MSY Unit
Baddi Baddi
1 Discontinued since March, 04 Nov, 2000
2 Segment the operation of the FMCG FMCG
Unit relates to in financial statement
3 Carrying amount of total assets 33 28
(33) (28)
4 Carrying amount of total liabilities 4 0
(4) (0)
5 Profit from ordinary activities 0 0
(0) (0)
6 Income Tax expenses 0 0
(0) (0)
7 Gain on disposal of assets 0 0
(0) (0)
8 Cash flow from discontinued operations:
Operating activities 0 0
(0) (0)
Investing Activities 0 0
(0) (0)
Financial Activities 0 0
(0) (0)
Note: I. Figures in brackets are for previous year
II. Part of fixed assets belonging to discontinued operations under reference has been used for new plants set up in relevant premises. Such assets have
been left out of the purview of ‘3’ above.
22
Dabur India Limited Half Yearly Report 2007-08
Schedules
Particulars As at As at
30.09.2007 31.03.2007
Current assets
Inventories: 19,340 15,737
- Raw materials 4,824 4,135
- Packing materials, stores and spares 3,034 2,477
- Stock in process 1,981 2,517
- Finished goods 9,501 6,608
Sundry debtors (unsecured) -net of doubtful debtors 7,337 6,098
Cash and bank balances 5,519 5,025
Loans and advances (unsecured, considered good) 17,760 12,782
Loans & advances to subsidiaries 3,272 1,000
Security deposit with various authorities 1,100 981
Advance payment of tax 10,133 8,133
Advances to suppliers 1,274 771
Advances to employees 231 214
Balance with excise authorities 1,004 1,124
Other advances recoverable in cash or in kind or for 746 559
value to be received
23
Half Yearly Report 2007-08 Dabur India Limited
Schedules
2.21 Sales
24
Dabur India Limited Half Yearly Report 2007-08
Schedules
25
Half Yearly Report 2007-08 Dabur India Limited
Schedules
Particulars Consumer Care Consumer Health Others Unallocated Dabur India LTD.
Business Business
Current Previous Current Previous Current Previous Current Previous Current Previous
Period Period Period Period Period Period Period Period Period Period
REVENUE
External Sales 83,037 72,392 7,632 7,930 2,195 2,134 92,864 82,456
Inter-segment sales
Total Revenue 83,037 2,195 2,134 92,864 82,456
RESULT
Segment result 21,770 18,507 1,932 1,993 143 18 23,845 20,518
Unallocated corporate expenses 7,485 7,361 7,485 7,361
Operating profit 21,770 18,507 1,932 1,993 143 18 -7,485 -7,361 16,360 13,157
Interest expense (Net Of Interest Income) 238 257 238 257
Income Tax(Current + Deferred) 2,135 1,846 2,135 1,846
Profit from ordinary activities 21,770 18,507 1,932 1,993 143 18 -9,858 -9,464 13,987 11,054
Exceptional item 411 411
Net profit 21,770 18,507 1,932 1,993 143 18 -9,858 -9,875 13,987 10,643
OTHER INFORMATION As on As on As on As on As on As on As on As on As on As on
30/9/07 31/3/07 30/9/07 31/3/07 30/9/07 31/3/07 30/9/07 31/3/07 30/9/07 31/3/06
Segment assets 31,256 27,063 7,795 6,749 3,647 3,158 42,698 36,970
Unallocated corporate assets 6,512 5,639 6,512 5,639
Total assets 31,256 27,063 7,795 6,749 3,647 3,158 6,512 5,639 49,210 42,609
Segment liabilities 2,722 2,887 719 763 101 107 3,542 3,757
Unallocated corporate liabilities 486 515 486 515
Total liabilities 2,722 2,887 719 763 101 107 486 515 4,028 4,272
Capiltal Employed 28,534 24,176 7,075 5,986 3,546 3,051 6,026 5,124 45,182 38,337
Depreciation 543 454 83 61 83 90 399 390 1,108 995
Non-cash expenses other than depreciation 257 416 257 416
SECONDARY SEGMENT
As the company also exports, the secondary segment for the company is based on the location of customers’s. Out
of the total sales of Rs. 92864 (82456), the export sales is of Rs. 3637 ( 3399 ) and domestic sale is 89227 ( 79057 )
2.26 a. Pension of relative of deceased director Rs. 15.75 (previous period 15.75).
b. Pension of retired directors Rs. 40.58l ( previous period 30.65)
2.27 Exchange Loss works out to Rs.138 net of gain of Rs. 170 which has been Debited to Profit & Loss account.
Previous period Exchange Gain worked out to Rs. 91.76 net to exchange loss.
2.28 Quarterly figures appearing in condensed Profit & Loss Account and break-up there for in Schedule –A are not
based on audited figures.
2.29 Figures of earlier period/year have been rearranged in terms of current period grouping as and when necessary.
For Dabur India Ltd. As per our report of even date attached
Dr. Anand C. Burman, Chairman For G. Basu & Co.
P.D. Narang, Director Chartered Accountants
Sunil Duggal, Director S. Lahiri
A.K. Jain, GM (Fin.) & Co. Secy. Partner
New Delhi
24th October, 2007
26
Dabur India Limited Half Yearly Report 2007-08
Auditors’ Report to Consolidated Financials
AUDITORS’ REPORT
We have audited the attached condensed consolidated balance sheet of Dabur India Limited group, as at 30th
September 2007 and also the condensed consolidated profit and loss account and the consolidated cash flow
statement for the half year ended on that date annexed thereto.
These financial statements are the responsibility of the Dabur India Ltd.’s management and have been prepared by
the management on the basis of separate financial statements and other financial information regarding components.
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. These standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by the management, as well as, evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
We did not audit the financial statements of certain subsidiaries, whose financial statements reflect total assets of
Rs.9939 lacs as at 30th September, 2007, the total profit of Rs. 662.89 lacs and cash flows amounting to Rs.118.75 lacs
for the half year then ended. These financial statements and other financial information have been audited by
other auditors, whose reports have been furnished to us, and our opinion is based solely on the report of other
auditors.
We report that the condensed consolidated financial statements have been prepared by the Dabur India Ltd.’s
management in accordance with the requirements of AS-21 on consolidated financial statement and AS-25 on
Interim Financial reporting issued by the Institute of Chartered Accountants of India.
Based on our audit and on consideration of reports of other auditors on separate financial statements and on the
other financial information of the components, and to the best of our information and according to the explanations
given to us, we are of the opinion that the attached condensed consolidated financial statements give a true and
fair view in conformity with the accounting principles generally accepted in India:
a) In the case of the condensed consolidated balance sheet, of the state of affairs of Dabur India Ltd. group as at
30th September, 2007.
b) In the case of the condensed consolidated profit and loss account, of the profit of Dabur India Ltd. group for the
half year ended on that date; and
c) In the case of the consolidated cash flow statement, of the cash flows of Dabur India Ltd. group for the half year
ended on that date.
S.LAHIRI
Partner
27
Half Yearly Report 2007-08 Dabur India Limited
Consolidated Balance Sheet
I. Sources of Funds
1. Share Capital 8,640 8,629
2. Reserves and surplus 47,754 39,328
3. Minority interests 592 447
4. Loan funds
(a) Secured loans 11,033 12,038
(b) Unsecured loans 2,281 3,951
5. Deferred tax liability 2,665 2,590
Total 72,965 66,983
II. Application of Funds
1. Fixed Assets A-2.20
(a) Tangible fixed assets 63,054 60,039
(b) Intangible fixed assets 1,682 1,682
Gross Block (a+b) 64,736 61,721
Less: Depreciation 25,235 23,807
Net Block 39,501 37,914
2. Investments 13,368 8,070
3. Deferred Tax Assets 145 145
4. Currents assets, loans and advances A-2.21
(a) Inventories 30,685 25,711
(b) Sundry debtors 15,000 14,197
(c) Cash and bank balances 6,694 6,067
(d) Loans and advances 22,484 18,071
Sub Total (4) 74,863 64,046
5. Less: Current liabilities and provisions A-2.22
(a) Liabilities 38,128 36,152
(b) Provisions 18,657 9,023
Sub Total (5) 56,785 45,174
Net current assets (4-5) 18,078 18,872
5. Miscellaneous expenditure to the extent 1,873 1,982
not written off or adjusted
Total 72,965 66,983
Accounting policies & notes to accounts A
For Dabur India Ltd. As per our report of even date attached
Dr. Anand C. Burman, Chairman For G. Basu & Co.
P.D. Narang, Director Chartered Accountants
Sunil Duggal, Director S. Lahiri
A.K. Jain, GM (Fin.) & Co. Secy. Partner
New Delhi
24th October, 2007
28
Dabur India Limited Half Yearly Report 2007-08
Consolidated Profit and Loss Account
For Dabur India Ltd. As per our report of even date attached
Dr. Anand C. Burman, Chairman For G. Basu & Co.
P.D. Narang, Director Chartered Accountants
Sunil Duggal, Director S. Lahiri
A.K. Jain, GM (Fin.) & Co. Secy. Partner
New Delhi
24th October, 2007
29
Half Yearly Report 2007-08 Dabur India Limited
Consolidated Cash Flow Statement
For Dabur India Ltd. As per our report of even date attached
Dr. Anand C. Burman, Chairman For G. Basu & Co.
P.D. Narang, Director Chartered Accountants
Sunil Duggal, Director S. Lahiri
A.K. Jain, GM (Fin.) & Co. Secy. Partner
New Delhi
24th October, 2007
30
Dabur India Limited Half Yearly Report 2007-08
Consolidated Cash Flow Statement
1. ACCOUNTING POLICIES
1.1 Body Corporate under Consolidation
The Consolidated Financial Statement (CFS) relates to Dabur India Limited (the parent company) and Dabur
Foods Ltd. and H&B Stores Ltd (both wholly owned subsidiary company incorporated in India), Dabur International
Ltd., (wholly owned body corporate incorporated in Isle of MAN), Dabur (UK) Ltd. (a wholly owned subsidiary
body corporate incorporated in British Virgin Island 100% stake wherein is held by Dabur International Ltd.),
Dabur Nepal Pvt. Ltd. (a subsidiary body corporate incorporated in Nepal, 97.5% stake wherein is held by Dabur
International Ltd.), Dabur Egypt Ltd. (a wholly owned subsidiary body corporate incorporated in Egypt, 76% &
24% of stake wherein are held by Dabur (U.K.) Ltd. and Dabur International Ltd. respectively), Asian Consumercare
Pvt. Ltd. (a subsidiary body corporate incorporated in Bangladesh, 76% stake wherein is held by Dabur International
Ltd.), Weikfield International (UAE) (a subsidiary body corporate incorporated in UAE, 38.41% stake wherein is
held by Dabur International Ltd. which has control of composition of board of directors of the former being
raison d’etre of subsidiary status) African Consumer Care Ltd. (a subsidiary body corporate incorporated in
Nigeria, 90% stake wherein is held by Dabur International Ltd & 10% stake held by Dabur (UK) Ltd, Asian
Consumer Care Pakistan Ltd (a wholly owned subsidiary body corporate incorporated in Pakistan, 100% stake
where in is held by Dabur International Ltd) and Naturelle LLC (a subsidiary body corporate incorporated in
Emirate of RAS AI Khaimah 49% stake wherein is held by Dabur International Ltd, which has control the
composition of board of directors of the former being raison d’etre of subsidiary status.
1.2 Significant Accounting Policies
a) Accounting policies and principles of consolidation followed herein remain in terms of same applied in
consolidated financial statements for the year ended 31st March 2007.
b) Preparation of CFS including disclosure made therefore and condensation of Balance Sheet and Profit and
Loss Account have been made in terms of requirement of AS 25 issued by ICAI.
2. NOTES TO ACCOUNTS
2.1. All amounts in the financial statements are presented in Rupees Lacs, except for those specifically stated
otherwise.
2.2 Contingent Liabilities:
I. In respect of claims not acknowledged as debts towards:
a) civil suits filed by others Rs. 261 (previous year Rs. 262)
b) claims by employees Rs. .01 (previous year Rs. .01).
II. In respect of letters of credit Rs. 2019 (previous year Rs. 1963).
III. In respect of Bank Guarantees executed Rs. 2111 (previous year Rs. 2116).
IV. In respect of Sales Tax under appeal Rs.1012 (previous year Rs. 1077).
V. In respect of excise duty disputes pending with various judicial authorities Rs. 1867 (previous year
Rs. 1767).
VI. In respect of Corporate Guarantees furnished Rs. 9375 (previous year Rs. 11520).
VII. In respect of Income Tax under appeal Rs. 409 (previous year Rs. 462).
VIII. Estimated amount of contract remaining to be executed on Capital Account (net of advances) Rs. 5021
(previous year Rs. 612).
Considering the remote possibility of outflow in respect of above no provision is deemed necessary as
envisaged in AS 29 issued by ICAI.
31
Half Yearly Report 2007-08 Dabur India Limited
Schedules to Consolidated Financials
iii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.
iv) Brief particulars of provision under AS 29
Nature of liabilities Particular of dispute Amount Forum under the dispute is pending
VAT Short Payment of VAT 62.64 II appeal Filed
Sales Tax Classification of Lal Dant Manjan 24.32 Filed review application with High Court –
Sales Tax Classification of Gulabari 0.74 Appeal Filed before the D.C. Appeal
Sales Tax Excemption Forms from Dealers 1.08 IInd Appeal filed before D.C. Appeal
Entry Tax Entry Tax on Car 0.29 Appeal pending before D.C.
v) Company presumes remote risk possibility of further cash outflow pertaining to contingent liabilities listed
in para 5 (a) above.
2.3 Related Party Disclosures:
2.3.1 Related parties where control exists:
Associate/Joint Ventures:
ACI Ltd. Bangladesh
Weikfield Product Co. Pvt. Ltd
Mr. Rukma Rana, joint venture partner in Dabur Nepal Pvt. Ltd
RAK Investment Authority.
2.3.2 Other related parties in transaction with the body Corporates under Consolidation
2.3.2.1 Key Management Personnel and relatives of such personnel:
Director Relatives
Pradip Burman
Amit Burman Asha Burman
P D Narang -
Sunil Duggal -
Siddharth Burman Saket Burman
Rukma Rana -
Mohit Burman -
Chetan Burman -
2.3.3 Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence:
Welltime Housing & Finance Ltd.
2.4 Related Party transactions
Related Party Transactions as on 30.09.2007
Associates Key Relatives of Total Outstanding
Management Key Mgt. as on
Personnel Personnel 30.09.2007
Sale of Goods 134 - - 134 -
(298) (-) (-) (298) (-)
Rent Paid 5 23 - 28 -
(9) (18) (-) (27) (-)
Interest Paid - - - -
(4) (-) - (4) -
Repayment of Loans Given(Instl.Recd) 3 - - 3 -
(-) (-) (-)
Remuneration/Exg./Pension - 555 30 585 -
(-) (482) (46) (528) (-)
Royalty Paid 8 - - 8 -
(6) - - (6) (-)
Management Fees 5 - - 5 -
(-) (-) (-) (-) -
Other Services 1 - - 1
(-) (-) (-) (-) (-)
32
Dabur India Limited Half Yearly Report 2007-08
Schedules to Consolidated Financials
2.5 Since external and internal sources of information do not provide for any indication for impairment of fixed
assets for parent company based on cash generating unit concept, recoverable values of assets have not been
determined for the period as authorized by clause 6, AS-28 issued by ICAI. Regarding other companies/body
corporate under consolidation, the exercise of test of impairment conducted by management revealed absence
of any provisioning exigency in this connections.
2.6 Deferred tax liability has been provided on estimated basis.
2.7 Liabilities in respect of retirement benefits to employees, which includes gratuity, leave salary and
superannuation fund, have been provided for on estimated basis by body corporate.
2.8 Liability on account of employee related dues in terms of AS 15 (as revised) including annual accretion arising
on account of additional package selectively provided during current year will be accounted for at year end.
2.9 Board of Directors of parent company has declared interim dividend @ Re. 0.75 i.e. 75% (previous period
Rs. 1.00 i.e. 100%) for the period , the amount of interim dividend working out to Rs. 7581 (previous period
Rs. 6546) including incidence of tax thereon.
2.10 During the period the parent company has allotted 11,22,980 (previous period 724982) equity share of
Re. 1/- each to the employees upon their exercise of stock option.
2.11 5145074-(previous year 6124608) equity shares of Re. 1/- each are outstanding under “Employees Stock Option
Scheme” as on 30th September, 2007
2.12 Investment at half-year end includes Rs. 13260 (previous year Rs. 7962) towards current investment carried at
lower of cost and market value. Remaining investments, being long term in nature, are valued as per disclosure
made in preceding annual financial statement
2.13 During the period, Rs. 118049 has been invested in current investment.
2.14 During the period, sale of current investments amounted to Rs. 112751 and long term investment amounted
to 0.15.
2.15 During the period, commercial paper amounting to Rs. 1000 has been availed.
2.16 Information (to the extent applicable) pursuant to AS 19 issued by ICAI:-
The future minimum lease payment under non-cancelable operating lease
30.09.2007 31.03.2007
Not later than 1 year 18 17
Later than 1 year not later than 5 years 9 8
Later than 5 years Nil Nil
33
Half Yearly Report 2007-08 Dabur India Limited
Consolidated Balance Sheet
34
Dabur India Limited Half Yearly Report 2007-08
Consolidated Profit and Loss Account
OTHER INFORMATION As on As on As on As on As on As on As on As on As on As on As on As on
30/09/07 31/03/07 30/09/07 31/03/07 30/09/07 31/03/07 30/09/07 31/03/07 30/09/07 31/03/07 30/09/07 31/03/07
Segment assets 40,360 37,278 7,795 6,749 11,474 11,405 3,183 2,910 62,812 58,342
Unallocated corporate assets 8,280 6,660 8,280 6,660
Total assets 40,360 37,278 7,795 6,749 11,474 11,405 3,183 2,910 8,280 6,660 71,092 65,002
Segment liabilities 7,935 9,172 720 763 5,313 6,099 137 157 14,105 16,191
Unallocated corporate liabilities 2,466 2,836 2,466 2,836
Total liabilities 7,935 9,172 720 763 5,313 6,099 137 157 2,466 2,836 16,571 19,027
Capiltal Employed 32,425 28,106 7,075 5,986 6,161 5,306 3,046 2,753 5,814 3,824 54,521 45,975
Depreciation 670 619 83 83 386 255 103 123 492 532 1,734 1,612
Non-cash expenses other than 257 416 257 416
depreciation
Secondary Segment
As the company also exports, the secondary segment for the company is based on the location of customers’s . Out of the total
sales of Rs. 120520 (103964) ., the export sales is of Rs. 15218 ( 10690) and domestic sale is 105302 ( 93274)
Particulars As at As at
30.09.2007 31.03.2007
Current assets
Inventories: 30685 25711
- Raw materials 8681 7387
- Packing materials, stores and spares 5899 5184
- Recoverable value from impaired fixed assets 0 0
- Stock in process 3235 3324
- Finished goods 12870 9816
Sundry debtors (unsecured) 15000 14197
Cash and bank balances 6694 6067
Loans and advances (unsecured, considered good, 22484 18071
unless stated otherwise)
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Half Yearly Report 2007-08 Dabur India Limited
Consolidated Balance Sheet
Particulars As at As at
30.09.2007 31.03.2007
Loans & advances to subsidiaries 0 0
Loans & advances to others 0 0
Security deposit with various authorities 1430 1511
Advance payment of tax 10742 8818
Advances to suppliers 3388 2407
Advances to employees 380 435
Balance with excise authorities 4347 1124
Other advances recoverable in cash or in kind or for 2197 3776
value to be received
2.23 Sales
Rupees in lacs
Particulars For the six months For the six months
ended 30.09.2007 ended 30.09.2006
Sales 120520 103964
Domestic sales less returns 105302 93274
Export sales 15218 10690
36
Dabur India Limited Half Yearly Report 2007-08
Consolidated Profit and Loss Account
Rupees in lacs
Particulars For the For the
six months six months
ended ended
30.09.2007 30.09.2006
2.24 (Increase)/decrease in stock in trade
37
Half Yearly Report 2007-08 Dabur India Limited
Consolidated Balance Sheet
2.27 Figures of earlier period/year have been rearranged in terms of current period grouping as and when necessary.
For Dabur India Ltd. As per our report of even date attached
Dr. Anand C. Burman, Chairman For G. Basu & Co.
P.D. Narang, Director Chartered Accountants
Sunil Duggal, Director S. Lahiri
A.K. Jain, GM (Fin.) & Co. Secy. Partner
New Delhi
24th October, 2007
38
Dabur India Limited Half Yearly Report 2007-08
NOTES
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Half Yearly Report 2007-08 Dabur India Limited
NOTES
40
Printed at: Thomson Press (I) Ltd.