dabur india limited dabur india limited

Half YearlyFinancial Report

DABUR INDIA LIMITED

2012-2013

Half YearlyFinancial Report

DABUR INDIA LIMITED

2012-2013

Dabur India Limited //Half Yearly Report 2012-13

2

Content

Board of Directors 4

Management Discussion and Analysis 5

Auditor’s Report 8

Financial Statements 9

Consolidated Financial Statements 20


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a trusted name in natural healthcare for over 100 years, is known for providing a range of efficacious and time-tested healthcare products based on the principles of Ayurveda.

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 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.


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BOARD OF DIRECTORSDr. Anand Burman ChairmanMr. Amit Burman Vice ChairmanMr. Saket Burman DirectorMr. Mohit Burman Director Mr. P D Narang DirectorMr. Sunil Duggal DirectorMr. R C Bhargava DirectorMr. P N Vijay Director Dr. S Narayan DirectorMr. Albert Wiseman Paterson DirectorDr. Ajay Dua DirectorMr. Sanjay K Bhattacharyya Director

SR GM (FINANCE) & COMPANY SECRETARYMr A. K. Jain

AUDITORSM/s G. Basu & Co.Chartered Accountants

INTERNAL AUDITORSPricewaterhouseCoopers Pvt. Ltd.

BANKERSPunjab National BankStandard Chartered BankThe Hongkong & Shanghai Banking Corporation Ltd.The Royal Bank of ScotlandCitibank N.A.HDFC Bank Ltd.IDBI Bank Ltd.

CORPORATE OFFICEDabur India Limited,Dabur Tower,Kaushambi, Sahibabad,Ghaziabad - 201 010, (U.P.), IndiaTel: 0120 - 3982000, 39412525Fax: 0120 - 4374935Website: www.dabur.comEmail: [email protected]

REGISTERED OFFICE8/3, Asaf Ali Road,New Delhi-110002, IndiaTel: 011-23253488


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Management Discussion and AnalysisThe current macroeconomic environment continues to remain

challenging in the backdrop of weak global economic environment.

India’s GDP forecasts have been lowered, with the Reserve Bank of

India now forecasting a GDP growth rate of 6.5% for fiscal 2012-13.

The government has taken up the reform agenda and has initiated

steps to increase FDI (Foreign Direct Investment) in sectors such

as multi-brand retail, aviation, insurance etc. These initiatives may

bode well for the Indian economy going ahead.

Inflationary pressures still persist with the WPI hovering in the

7.5-8% range. Rate cuts from RBI are likely to come about in the

case of inflation sliding below RBI’s tolerance level.

During the monsoon season there were fears of drought like

conditions due to deficient rains, which eased towards the end

of the season with overall deficiency reducing to 8% of long term

average.

The FMCG sector continued to report good volume led growth in

revenues during the first half of fiscal 2012-13. Rural India, which

contributes to a third of the overall FMCG sector continued to grow

well driven by factors such higher MSPs (Minimum Support Prices)

for agricultural produce, employment guarantee schemes and

growth in services. Furthermore, aspiration levels continue to trend

upwards with rural consumers demanding branded products.

Recent reports indicate incremental consumption expenditure in

Rural India has been significantly ahead of Urban India during the

past few years.

Real GDP Growth Rate - YoY (%)

FY08 FY09 FY10 FY11 FY12

9.3%

6.7%8.4% 8.4%

6.5%

Source: CSO and RBI estimates

Source: Office of Economic Adviser

WPI based Inflation (%)

7.5% 7.5%7.6%

7.5%7.6%

7.8%

Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12

Source: Indian Meteorological Department (IMD)

Seasonal Rainfall (Jun-Sept 2012) (in mm)

816.3883.0

Actual Normal

Incremental consumption expenditure in 2011-12 over 2009-10

Urban Rural

29943750

Source: NSSO (National Sample Survey Organisattion) and CRISIL Estimates

in Rs. billion


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Dabur Performance Overview

Dabur continued to perform well, with sales growing by 21.0%

to Rs. 2,984.6 crores in the first half of fiscal 2012-13. Input costs

pressures eased somewhat as compared to last year, with material

costs as % of sales declining to 49.7% in the first half of fiscal

2012-13 v/s 51.4% in the first half of fiscal 2011-12. We continue

to invest strongly behind our brands as reflected in a 46.8% surge

in our advertisement expenses during the first half of fiscal 2012-

13. EBITDA margins were at 17.8% in the first half of fiscal 2012-13

as compared to 18.5% in the first half of fiscal 2011-12. The Profit

after Tax grew by 16.6% to Rs. 351.8 crores in the first half of fiscal

2012-13.

Foods

Foods continued on the strong growth trajectory and grew by

26.9% to Rs. 337 crores during the first half of fiscal 2012-13, driven

by strong volume growth and new variants. New variants such as

Real Pomegranate and Apricot performed exceedingly well. The

company is in the process of introducing more variants and flavours

under both Real and Activ brands.

International Business

Dabur’s International Business grew by 24.4% in the first half

of fiscal 2012-13 and now contributes to almost a third of our

consolidated sales. The key growth markets have been the GCC

Consumer Care Business

The Consumer Care business grew by 13.9% to Rs. 1,585.6 crores

in the first half of fiscal 2012-13, with strong growths in Health

Supplements, OTC & Ethicals, Home Care and Skin Care portfolio.

Premium toothpaste portfolio registered strong growth while there

was some pressure on the economy toothpaste segment and

toothpowders, resulting in moderate overall growth in oral care.

Shampoo category bounced back during the half year period with

growth exceeding 30%.

Consumer Care Category Growth Rates (%)

Health

Supplements

Digestives

OTC &

Ethicals Home

CareHair

Care Oral

Care SkinCare

16.7%

10.9%

17.9%

11.8%

19.0%

7.5%

17.7%

H1 FY13


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(Gulf Co-operative Council), Egypt, Nigeria, Bangladesh and

Nepal. In terms of product categories, hair creams, hair oils and

toothpastes performed well. The international business continued

to focus on innovation and launched new products such as Vatika

Hair Serum, Vatika Black Seed Enriched Hair Oil, professional range

of Shampoos and Conditioners, etc.

Sales & Distribution

After successful completion of our urban distribution enhancement

initiative viz. Project Speed, the rural distribution initiative, Project

Double is on track and should be complete in the second half of

fiscal 2012-13. As part of this the company is increasing its direct

presence in select rural geographies in order to enhance the reach

as well as quality of distribution and the product mix for rural

consumers. The initiative has enhanced our product width and

depth in the hinterland and we are witnessing good momentum

in sales.

Manufacturing

The progress of construction of our Sri Lanka plant is on track and

is likely to be complete by the end of fiscal 2012-13. In addition,

we are now in the process of setting up a manufacturing facility in

Bangladesh to cater to the fast growing local market.

We continue to undertake initiatives to improve sustainability,

encompassing energy and water conservation aspects. Some of

these have been commissioning of Bio Briqutte boilers and reuse

of ETP treated water in cooling towers at our plants.

Overall the company was able to manage and tide over the

challenges of inflation and adverse currency movements during

the half year period and reported double digit revenue and

profit growth. Continued investments behind brand building

and innovation coupled with the distribution enhancement

initiatives will enable the company to drive good revenue

growth going forward.


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AUDITORS’ REPORT

To the Board of Directors,

Dabur India Limited,

We have audited the attached condensed Balance Sheet of Dabur India Limited as at 30th September, 2012 and its Statement of Profit & Loss and the Statement of Cash Flow 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.

We hereby report that :

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 Statement of Profit & Loss dealt with by this report are in agreement with the books of accounts.

iv. Condensed Balance Sheet, Condensed Statement of Profit & Loss and Statement of Cash Flow 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 selected explanatory 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, 2012;

b) In the case of Condensed Statement of Profit & Loss, of the Profit for the half year ended on that date; and

c) In the case of Statement of Cash Flow, of the cash flows for the half year ended on that date.

For G BASU & CO Chartered Accountants Firm Registration No. 301174E

ANIL KUMARPlace: New Delhi PartnerDate: 26th October, 2012 Membership No. 9390


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CONDENSED BALANCE SHEETas at 30th September 2012

PARTICULARS As at As at

Sep 30’2012 Mar 31’2012

For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390

(Rs. in Lacs)

I EqUITY AND LIABILITIES 1. Share holders’ Funds a) Share Capital 17,429 17,421 b) Reserves And Surplus 1,27,554 1,12,906 2. Non-Current Liabilities a) Long Term Borrowings 73 114 b) Deferred Tax Liabilities (Net) 3,064 2,711 c) Long-Term Provisions 44,595 37,665 3. Current Liabilities a) Short-Term Borrowings 18,555 27,214 b) Trade Payables 23,205 32,779 c) Other Current Liabilities 42,003 31,689 d) Short-Term Provisions 19,098 21,574 Total 2,95,576 2,84,073II ASSETS 1. Non-Current Assets a) Fixed Assets i) Tangible Assets 58,570 57,819 ii) Intangible Assets 766 714 iii) Capital Work-In-Progress 1,595 1,158 b) Non-Current Investments 16,159 15,948 c) Long-Term Loans And Advances 40,345 33,990 d) Other Non-Current Assets 7,354 8,384 2. Current Assets a) Current Investments 36,822 39,324 b) Inventories 48,460 52,857 c) Trade Receivables 21,779 22,417 d) Cash And Cash Equivalents 38,282 26,129 e) Short-Term Loans And Advances 22,456 22,111 f) Other Current Assets 2,988 3,222 Total 2,95,576 2,84,073Accounting Policies and Notes to Accounts (A)


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CONDENSED STATEMENT OF PROFIT AND LOSSfor the Quarter and Half Year ended 30th September, 2012

I Revenue from operations 1,04,278 87,900 2,06,025 1,72,570

II Other Income 2,162 1,265 4,324 2,715

III Total Revenue (I +II) 1,06,440 89,165 2,10,349 1,75,285 IV Expenses

Cost of materials consumed 38,204 37,200 77,394 71,731

Purchase of stock in trade 15,288 15,723 31,886 29,614

Changes in inventories of FG , WIP & Stock in trade

Finished Goods 189 (6,832) (137) (7,216)

Work in Progress 1,271 656 535 (235)

Stock in trade 167 6 537 -

Employee benefits expenses 7,104 6,164 13,559 12,102

Finance costs 895 138 1,064 794

Depreciation and Amortisation expenses 1,663 1,593 3,455 3,382

Other Expenses 22,109 16,896 47,374 35,942

Total Expense 86,890 71,544 1,75,667 1,46,114 (V) Profit before exceptional and extraordinary items and tax (III - IV) 19,550 17,621 34,682 29,171

(VI) Exceptional Items - - - -

(VII) Profit before extraordinary items and tax (V - VI) 19,550 17,621 34,682 29,171 (VIII) Extraordinary Items - - - -

(IX) Profit before tax (VII - VIII) 19,550 17,621 34,682 29,171 (X) Tax expense

(1) Current tax 3,912 3,525 6,939 5,837

(2) Deferred Tax 141 230 354 360

(XI) Profit/(Loss) for the year from continuing operations (IX - X) 15,497 13,866 27,389 22,974 (XII) Earnings per equity share ( before Extraordinary items)

(1) Basic 0.89 0.80 1.57 1.32

(2) Diluted 0.89 0.79 1.56 1.31

(XIII) Earnings per equity share (after Extraordinary items)

(1) Basic 0.89 0.80 1.57 1.32

(2) Diluted 0.89 0.79 1.56 1.31

Accounting Policies and Notes to Accounts (A)

DESCRIPTION For the For the For the six For the Six qtr. ended qtr. ended months ended months ended Sep 30’ 2012 Sep 30’ 2011 Sep 30’ 2012 Sep 30’ 2011

(Rs. in Lacs)



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STATEMENT OF CASH FLOW(Pursuant to AS-3) indirect method for the period ended 30th September’2012

A. Cash Flow from Operating Activities

Net Profit Before Tax and Extraordinary Items 34,682 29,171 Add: Depreciation 2,309 1,834 Loss on Sale of Fixed Assets 23 19 Fixed Assets Discarded/Written Down - - Miscellaneous Exp. Written off 1,262 1,686 Provision for Contingent Liability - - Interest 1,064 794 Unrealised Loss on Financial Instruments Amortisation Cost (136) - Unrealised Loss / (Gain) in Foreign Exchange (266) 4,256 (114) 4,219 38,938 33,390 Less: Interest Received 3,698 2,343 Profit on Sale of Investment 483 293 Profit on Sale of Assets 6 4,187 42 2,678 Operating Profit before Working Capital Changes 34,751 30,712 Working Capital Changes Increase/(Decrease) in Inventories (4,397) 5,605 Increase/(Decrease) in Trade Receivables (638) 378 Increase/(Decrease) in Other Current Assets (980) - Decrease/(Increase) in Trade Payables and other Payables 420 8,718 Increase/(Decrease) in Working Capital (5,595) 14,701 Cash Generated from Operating Activities 40,346 16,011 Tax Paid 6,355 6,355 6,362 6,362

Cash Used(-)/(+)Generated for Operating Activities (A) 33,991 9,649

B. Cash Flow from Investing Activities

Acquisition of Fixed Assets (2,988) (6,000) Sale of Fixed Assets 57 90 Purchases of Investment (2,12,345) (1,53,501) Interest Received 3,156 1,507 Proceed of Sale of Investments 2,15,468 1,75,321 Repayment (-)/Proceeds(+) from Loan to Subsidiaries (550) (850)

Cash Used(-)/(+)Generated for Investing Activities (B) 2,798 16,567

(Rs. in Lacs)

PARTICULARS For the period ended For the period ended

Sep 30’2012 Sep 30’2011


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STATEMENT OF CASH FLOW (Contd..)(Pursuant to AS-3) indirect method for the period ended 30th September’2012

C. Cash Flow from Financing Activities

Proceeds from Share Capital & Premium 4 6 Repayment(-)/Proceeds (+) of Long term secured Liabilities - (236) Repayment(-)/Proceeds(+) from Short Term Loans (8,392) 3,377 Repayment(-)/Proceeds(+) from Other Unsecured Loans (41) (9,128) Payment of Dividend (13,028) (11,293) Corporate Tax on Dividend (2,120) (1,836) Interest Paid (1,058) (786)

Cash Used(-)/+(Generated) in Financing Activities (C) (24,635) (19,896)

Net Increase(+)/Decrease (-) in Cash And Cash Equivalents (A+B+C) 12,154 6,320 Cash and Cash Equivalents Opening Balance 26,128 19,241 Cash and Cash Equivalents Closing Balance 38,282 25,561 Cash and Cash Equivalents (year end) 38,282 25,561 Balances with Banks without Restatement 37,970 25,293 Unrealised Gain/(Loss) on Foreign Exchange Fluctuation 283 236 Cheques / Drafts in Hand 1 - Cash-in-Hand 28 32

(Rs. in Lacs)

PARTICULARS For the period ended For the period ended

Sep 30’2012 Sep 30’2011



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SCHEDULE ASelected Explanatory Notes

1. ACCOUNTING POLICIES

1.1 Basis of Preparation of Financial Statements The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian

GAAP. Accounts and disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard)

Rules, other pronouncements of ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable.

Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue,

expenses and contingent liability pertaining to year/period, the financial statements relate to. Actual result could differ from

such estimates. Any revision in accounting estimate is recognized prospectively from current year/period and material revision,

including its impact on financial statement, is reported in notes to accounts in the year/period of incorporation of revision.

1.2 Significant Accounting Policies The Company has applied the same accounting policies in this half yearly financial statements as have been applied in its

annual financial statements for the year ended 31st March, 2012 except for recognition of deferred tax on estimated basis as

against actual basis.

Preparation of Balance Sheet, Profit & Loss Account, Cash Flow Statement including disclosures made there on in notes to

accounts and condensed Balance Sheet and Profit and Loss Account have been made in terms of AS 25 mandated by ASB.

2. NOTES TO ACCOUNTS

2.1 Contingent Liabilities (Not provided for) :

A. Claims against the company not acknowledged as debts:

i. In respect of Civil Suits filed against the company Rs. 970 (previous year Rs. 770 ).

ii. In respect of Claims by Employees Rs. 51 (previous year Rs. 44 ).

iii. In respect of Sales Tax under appeal Rs. 1517 (previous year Rs. 1070).

iv. In respect of Excise Duty disputes pending with various authorities Rs. 7703 (previous year Rs. 7611)

v. In respect of Income tax under appeal Rs. 21 (previous year Rs. 319).

B. Guarantees given:

In respect of Guarantees furnished by the Company Rs. 152325 (previous year Rs. 122303)

C. Information pursuant to AS 29 on contingent liabilities provided for:

i) Brief particulars of provision under AS 29 towards liabilities disputed being carried over from previous year without adding to or

withdrawal therein /therefrom:

(Rupees in lacs, except Share Data)


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Nature of

Liability

Particular of dispute Opening

Liability

Provision

made during

the period

Provision

adjusted during

the period

Closing

Provision

Forum where the dispute

is pending

Sales Tax Classification of Laldant

Manjan

36 0 0 36 Filed review application with

High Court

Entry Tax Entry tax on car 1 0 0 1

Sales Tax Classification of hajmola

Candy

28 0 0 28 Appeal pending before S T

Appellete

Sales Tax Tax Paid purchase 29 0 0 29 Pending before High Court

Excise Hajmola Candy

classification matter

109 0 0 109 Tribunal

Excise Capital Goods removal 30 0 0 30 DC Appeal

Total 233 0 0 233

ii) Resulting outflows against above disputed liabilities, if mature, are expected to be in succeeding year.

iii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.

D. Commitments:

Estimated amount of contract remaining to be executed on capital account Rs. 2132 (previous year Rs. 1665).

2.2 Related Party Disclosures in terms of AS 18 2.2.1 Enterprises where control exists:

1. Dabur Nepal Private Ltd. 2. Dabur (UK) Ltd.

3. Dabur Egypt Ltd. 4. Dabur International Limited

5. Asian Consumercare Private Limited 6. African Consumercare Limited

7. Asian Consumercare Pakistan (Pvt.) Limited 8. Naturelle LLC.

9. H & B Stores Limited. 10. Dermoviva Skin Essentials Inc.

11. Dabur Egypt Trading Ltd. 12. Hobi Kozmetik

13. Ra Pazarlama 14. Namaste Laboratories LLc, US

15. Hair Rejuvenation & Revitalization Nigeria Ltd 16. Healing Hair Lab International LLc, US

17. Urban Lab International LLC, USA 18. Dabur Lanka (Pvt.) Limited

19. Namaste Cosmetics LTDA, Brazil 20. Weikfield International(UAE) LLC upto 26.06.2012

2.2.2 Other related parties in transaction with the company

2.2.2.1 Associate/Joint Ventures:

Dabon International Pvt. Ltd. (Associate)

Forum 1 Aviation Limited

2.2.2.2 Key Management Personnel and relatives of such personnel:

Director : P D Narang

Sunil Duggal



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2.2.3. Related Party Transactions :

Related Party Transactions as on 30.09.2012

Subsidiary JV/Partner-

ship

Key Manage-ment personnel

Entity Under SignificantInfluence

Total Outstanding as on

period end

1. Purchase of Goods 16163 0 0 0 16163 23

(16211) (-) (-) (169) (16380) (35)

2. Sale of Goods 2902 0 0 - 2902 702

(2353) (-) (-) (-) (2353) (1766)

3. Royalty Expense 6 - - - 6 27

(5) (-) (-) (-) (5) (19)

4. General Expenses 0 307 - - 307 33

(-) (223) (-) (-) (223) (49)

5. Interest Received on Loan 0 - - - 0 0

(9) (-) (-) (-) (9) 0

6. Remuneration (Exg./Pension) - - 521 - 521 0

(-) (-) (1259) (-) (1259) 0

7. Employee Stock Option Scheme 163 - 554 - 717 0

(136) (-) (728) (-) (865) 0

8. Interest Received on Sec. Deposit - 1 - - 1 0

(-) (-) (-) (-) 0 0

9. loan Given 550 - - - 550 3200

(1600) - - - (1600) (2650)

10. Investment - - - - - 7125

(4489) (-) (-) (-) (4489) (7125)

11. Equity Contribution 0 - - - 0 7125

(1483) (-) (-) (-) (1483) (7125)

12. Security Deposit - - - - - 38

(-) (-) (-) (-) (-) (38)

13. Guarantees & Collaterals 29564 0 - - 29564 151255

(29189) (-) (-) (-) (29189) (121690)

Notes:

A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. Rs. 16001 (Rs. 16031)

B. Item referred to in 2 above includes Sales to Dabur International Ltd., Weikfield International (UAE) LLC and Naturelle LLC Rs. 437,

Rs. 0 and Rs. 967 (Rs. 380, Rs. 226 and Rs. 508) respectively.



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C. Item referred to in 9 above includes Loan given to Dabur International Ltd. and H & B Stores Ltd. Rs. Nil and Rs. 550 (Previous Year

Rs. 0 and Rs. 2650).

D. Item referred to in 13 above includes Guarantees & Collaterals to Dabur Egypt Ltd., Naturelle LLC, Asian Consumercare Pakistan

(Pvt.) Ltd., Asian Consumercare Pvt. Ltd., Dermoviva Skin Essentials Inc., Dabur International Ltd., Dabur Lanka (Pvt.) Ltd. and

Forum 1 Aviation Ltd Rs. 2168, Rs. 2114, Rs. Nil, Rs. Nil, Rs. 60513, Rs. 66693, Rs. 15987 and Rs. 714 (Rs. 3372, Rs. Nil, Rs. Nil, Rs.

Nil, Rs. 54940, Rs. 59103, Rs. 3561 and Rs. 714) respectively.

E. Figures in bracket relate to corresponding previous period for revenue items and preceding year end for balance sheet items.

2.3 AS 30 , 31 & 32:a. Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not being receivable/payable in

short term context), call for measurements at amortized value unless amortized value does not materially differ from unamortized

value or assets /liabilities are held at floating rate of interest.

Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on date, hereby described as

amortized value , has been considered on the basis of appropriate Government Bond rate ruling as on 30-09-2012 which is 8.15

% as against 8.4% ruling as on 31-03-2012. Such benchmarking of effective rate is attributed to expected cognizance taken by

government of the market risk , commodity price index, foreign exchange reserve, inflationary & deflationary impact on internal

rates & cyclic / non cyclic fluctuations in fiscal & monetary system for the purpose of arriving at the rate of bond.

b. Particulars on financial assets/liabilities where fair value/amortized cost differ from book balance.

Particulars Holding Price(Rs. lac)

Fair Value(Rs. lacs)

Profit / (Loss) (Rs.

lac)

Head of Account Profit / (loss) being Accounted

for

A. FINANCIAL ASSETS a. Held for Trading Mutual Funds

b. Available of Sale Government Bond

as on 30.09.2012as on 31.03.2012

as on 30.09.2012

as on 31.03.2012

2031512165

8792

8714

2045612231

9003

8792

14165

211

78

other IncomeOpening General Reserve

Investment Revaluation Reserve

Investment Revaluation Reserve

B. FINANCIAL INSTRUMENT a. Instrument hedging adverse currency fluctuation against Off Balance Exposure in Foreign Currency b. Instrument hedging adverse currency fluctuation against borrowing in foreign currency

as on 30.09.2012as on 31.03.2012

as on 30.09.2012as on 31.03.2012

0

0

-3710

-610-63

-3710

-610-63

Finance CostFinance Cost


Particulars OriginalAmount

DiscountedValue

Re-InstatedDiscounted

Value (Rs. lacs)

Profit / (Loss)

Head of Account Profit / (Loss) being Accounted

for

C. FINANCIAL LIABILITIES Long term Borrowing as on 30.09.2012

as on 31.03.2012162212

114164

1190

-548

Finance CostOpening General Reserve



17

2.4 Outcome of test of impairment undertaken for cash generating units concluded against creation of provision against impairment

loss under AS-28.

2.5 During the period, the company has paid final dividend @ 75% (previous year 65%) amounting to Rs. 15190 (previous year Rs.

11315) in respect of financial year 2011-12 after approval to the effect in the AGM dated 17.07.2012.

2.6 The Board of Directors of the company has approved payment of interim dividend @ 65% (previous period 55%) amounting to Rs.

13167 (previous period Rs. 11136) including tax applicable thereon.

2.7 During the period the company has allotted 820357 (previous period 1323524) equity shares of Re 1/- each to the employees

upon their exercise of option under Employee Stock Option Scheme which includes allotment of 379175 equity shares worth Rs.

4 lacs against capitalization of share premium without consideration money received in cash. Besides, options against 611121

number of equity shares have been cancelled during the period following lapse of option under relevant scheme.

2.8 17576091 (previous period 189607840) equity shares of Re.1/- each are outstanding under “Employees Stock Option Scheme” as

on 30th September, 2012.

2.9 During the period company has invested Rs. 212269 (previous period Rs. 151987) in current investment.

2.10 During the period company has sold current investments amounting to Rs. 203570 (previous period Rs. 152858).

2.11 Investment in jointly controlled entities (JCE) – Information pursuant to AS-27 mandated by ASB :

1. Forum 1 Aviation Limited:-

(a) Share of the company in assets, outside liability, net worth and income and expenses not being accounted for herein work out

to Rs. 987 (previous year Rs. 1011), Rs. 376 (previous year Rs. 441), Rs.611 (previous year Rs. 114), Rs. 264 (previous period Rs. 177)

& Rs. 238 (previous period Rs. 150) retrospectively as per un-audited accounts of JCE.

(b) Stake of the company in terms of percentage of total subscribed and paid up capital of JCE is 14.28%. Said amount (Rs. 456)

appears under non-current trade investment in balance sheet of the company.

(c) Company’s commitment towards revenue expenditure of the JCE amounting to Rs. 307 (previous period Rs. 223) has been

charged to profit and loss account under the head general charges.

(d) No income from said investment, unless realized in cash, is recognized in this standalone account.

2. Dabon International Pvt Ltd :

Total investment of the company is Rs. 27 lacs which is 1 % of total stake. Since almost entire amount has already been provided

for with no further obligation accruing to the company in respect of the joint venture arrangement, proportional consolidation

of corresponding joint venture accounts has been done away with.



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19

2.13 Information (to the extent applicable) pursuant to AS 19 issued by ICAI: -

The future minimum lease payment under non-cancelable operating lease :-

Particulars Not Later than 1 Years Later than 1 year Not

later than 5 Years

Later than 5 Years

Building & Machine 12

(46)

6

(12)

0

(0)

Car

72

(47)

88

(71)

0

(0)

Lease rent recognized during the period Rs. 42 (previous period Rs. 32)

2.14 During the period, company has repaid Rs. Nil, Rs. 13659 and Rs. 50 on account of Term Loan from bank, Short Term Loan from

banks and Deferred Sales Tax respectively. Besides, it has also raised Rs. 30000 against issue of Commercial Paper during the

period, out of which Rs. 25000 has been repaid during the period itself.

2.15 Exchange Loss works out to Rs. 1526 (previous period Rs. 1567) and Exchange Gain of Rs. 1390 (previous period Rs. 1675) which

has been accounted for in Profit & Loss account as finance cost.

2.16 Employees related dues including post-separation benefits of directors have been accounted for on the basis of actuarial

computation under project unit credit method, demographic assumptions thereon remain same as that of preceding year except

for mortality rate within the age-group of 31 years to 44 years and expected return on planned assets considered at 14% and

9.25% as against respective assumptions at 13% and 9% in preceding financial year.

2.17 Calculation of EPS as per AS-20:

Particulars Apr. 2012 to Sep. 2012 Apr. 2011 to Sep. 2011

Profit after Tax (before and after adjustment of extraordinary items) 27,389 22,974

Weighted average no. of shares outstanding

Basic 1742602984 1741278349

Diluted 1753779883 1753405804

Earnings per share (of face value of Re 1/-)

Basic 1.57 1.32

Diluted 1.56 1.31

(Note: Profit figures are in Rs. Lacs)

2.18 All figures have been rounded off to nearest Rs. Lacs unless stated otherwise.

2.19 Quarter-I figures appearing in condensed Profit & Loss Account in schedule –A are not based on audited figures.

2.20 Figures of earlier period/year have been rearranged in terms of current period grouping as and when necessary.




20

AUDITORS’ REPORT

To the Board of Directors,

Dabur India Limited,

We have audited the attached condensed consolidated balance sheet of Dabur India Limited group, as at 30th September 2012 and also the condensed consolidated statement of profit and loss and the consolidated statement of cash flow 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 statement of one Joint Venture Entity, whose financial statements reflect total assets of Rs.986 lacs as at 30th September, 2012, the total profit of Rs.25 lacs and cash outflows amounting to Rs.7 lacs for the half year then ended. Financial statements and other financial information of the subsidiary 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. Accounts of the joint venture have been consolidated on the basis of un-audited accounts certified by the management.

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 27 on Financial reporting of interest in Joint Ventures 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, 2012.

b) In the case of the condensed consolidated statement of profit and loss, of the profit of Dabur India Ltd. group for the half year ended on that date; and

c) In the case of the consolidated statement of cash flow, of the cash flows of Dabur India Ltd. group for the half year ended on that date.

For G BASU & CO Chartered Accountants Firm Registration No. 301174E

ANIL KUMARPlace: New Delhi PartnerDate: 26th October, 2012 Membership No. 9390

CONSOLIDATED FINANCIAL STATEMENTS


21

CONDENSED CONSOLIDATED BALANCE SHEETas at 30th September 2012

I EqUITY AND LIABILITIES 1. Share holder’s Funds a) Share Capital 17,429 17,421 b) Reserves and Surplus 1,72,600 1,54,297 2. Minority Interest 365 303 3. Non-current liabilities a) Long Term borrowings 53,176 68,302 b) Deferred Tax Liabilities (Net) 3,208 2,740 c) Other long term liabilities 298 - d) Long-term provisions 62,527 57,993 4. Current Liabilities a) Short-term borrowings 40,039 34,091 b) Trade payables 31,651 25,808 c) Other current liabilities 69,835 77,127 d) Short-term provisions 27,738 24,149 Total 4,78,866 4,62,231 II ASSETS 1. Non-current assets a) Fixed Assets i) Tangible assets 87,351 84,225 ii) Intangible assets 79,713 79,898 iii) Capital work-in-progress 4,422 2,676 b) Non-current investments 9,139 8,928 c) Long-term loans and advances 40,983 37,269 d) Other non-current assets 9,070 10,192 2. Current assets a) Current investment 36,844 39,324 b) Inventories 74,432 82,392 c) Trade receivables 42,579 46,168 d) Cash and cash equivalents 59,686 41,842 e) Short-term loans and advances 28,378 26,096 f) Other current assets 6,269 3,221 Total 4,78,866 4,62,231


(Rs. in Lacs)

PARTICULARS As at As at

Sep 30’2012 Mar 31’2012



22

CONDENSED CONSOLIDATED STATEMENT OF PROFIT & LOSS ACCOUNTfor the six months ended 30th September 2012

I Revenue from operations 2,99,922 2,47,700

II Other Income 4,675 2,861

III Total Revenue (I +II) 3,04,597 2,50,561 IV Expenses

Cost of materials consumed 1,17,675 1,10,473

Purchase of stock in trade 26,931 23,126

Changes in inventories of FG , WIP & Stock in Trade

Finished Goods 861 (7,192)

Work in Progress 66 304

Stock in trade 2,877 0

Employee benefits expenses 22,738 18,925

Finance cost 3,614 2,983

Depreciation & Amortisation Expenses 5,372 5,006

Other Expenses 80,256 59,266

Total Expense 2,60,390 2,12,891 (V) Profit before exceptional and extraordinary items and tax (III - IV) 44,207 37,670

(VI) Exceptional Items (466) 0

(VII) Profit before extraordinary items and tax (V - VI) 43,741 37,670 (VIII) Extraordinary Items 8 0

(IX) Profit before tax (VII - VIII) 43,749 37,670 (X) Tax expense

(1) Current tax 7,933 6,961

(2) Deferred Tax 486 535

(XI) Profit/(Loss) for the year from continuing operations (IX - X) 35,330 30,174 (XII) Minority Interest 153 17

(XIII) Profit after Minority Interest 35,177 30,157 (XIV) Earnings per equity share ( before Extraordinary items)

(1) Basic 2.03 1.73

(2) Diluted 2.01 1.72

(XV) Earnings per equity share ( After Extraordinary items)

(1) Basic 2.03 1.73

(2) Diluted 2.01 1.72


(Rs. in Lacs) DESCRIPTION For the period ended For the period ended Sep 30’2012 Sep 30’2011



23

STATEMENT OF CASH FLOW(Pursuant to AS-3) Indirect Method

A. Cash Flow From Operating Activities

Net Profit Before Tax, Exceptional and Extraordinary Items 44,207 37,670 Add: Depreciation 4,060 3,289 Loss on Sale of Fixed Assets 109 65 Fixed Assets Discarded/Written Down 7 - Transaltion Reserve (4,643) - Miscellaneous Exp. Written off 1,309 1,686 Interest 3,614 2,983 Unrealised Loss on Financial Instruments Amortisation Cost (136) - Unrealised Loss / (Gain) In Foreign Exchange (266) 4,054 (5,556) 2,467 48,261 40,137 Less: Interest Received 4,045 2,476 Profit on Sale of Investment 483 293 Profit on Sale of Assets 6 4,534 55 2,824 Operating Profit Before Working Capital Changes 43,727 37,313 Working Capital Changes Increase/(Decrease)in Inventories (7,960) 6,100 Increase/(Decrease) in Trade Receivables (3,591) 8,024 Increase/(Decrease) in Other Current Assets 5,330 - Decrease/(Increase) in Trade Payables And Other Payables 4,307 10,114 Increase/(Decrease) in Working Capital (1,914) 24,238 Cash Generated From Operating Activities 45,641 13,075 Tax Paid 13,323 13,323 7,059 7,059

Cash Used(-)/(+)Generated For Operating Activities (A) 32,318 6,016

B. Cash Flow From Investing Activities

Acquisition of Fixed Assets (9,312) (11,308) Sale of Fixed Assets 454 662 Purchases of Investment (2,12,345) (1,53,501) Interest Received 4,045 2,476 Proceed of Sale of Investments 2,15,234 1,75,791 Repayment (-)/Proceeds(+) from Loan to Subsidiaries - -

Cash Used(-)/(+) Generated for Investing Activities (B) (1,924) 14,120

(Rs. in Lacs)

PARTICULARS For the period ended For the period ended Sep 30’2012 Sep 30’2011


24

STATEMENT OF CASH FLOW (Contd..)(Pursuant to AS-3) Indirect Method

C. Cash Flow From Financing Activities

Proceeds From Share Capital & Premium 4 6 Repayment(-)/Proceeds (+) of Long Term Secured Liabilities 298 3,036 Repayment(-)/Proceeds(+) from Short Term Loans 5,948 (259) Repayment(-)/Proceeds(+) from other Unsecured Loans - (611) Payment of Dividend (13,066) (11,293) Corporate Tax on Dividend (2,120) (1,837) Interest Paid (3,614) (2,999)

Cash Used(-)/+(Generated) In Financing Activities (C) (12,550) (13,957)

Net Increase(+)/Decrease (-) In Cash And Cash Equivalents (A+B+C) 17,844 6,179 Cash And Cash Equivalents Opening Balance 41,842 27,242 Cash And Cash Equivalents Closing Balance 59,686 33,421

Cash And Cash Equivalents Balances With Banks 57,224 32,976 Cheques / Drafts In Hand 210 - Cash-In-Hand 1,944 217 Unrealized Gain/(Loss) On Foreign Exchange 308 228

(Rs. in Lacs)

PARTICULARS For the period ended For the period ended Sep 30’2012 Sep 30’2011



25

SCHEDULE ASelected Explanatory Notes

1. ACCOUNTING POLICIES

1.1 Accounting convention: The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian

GAAP. Accounts and disclosure thereon comply with the Accounting Standards specified in Companies (Accounting Standard)

Rules, other pronouncements of ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable.

Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue,

expenses and contingent liability pertaining to year/period, the financial statements relate to. Actual result could differ from

such estimates. Any revision in accounting estimate is recognized prospectively from current year/period and material revision,

including its impact on financial statement, is reported in notes to accounts in the year/period of incorporation of revision.

1.2 Body Corporate under Consolidation The Consolidated Financial Statement relates to:-

Dabur India Limited (the parent company)•

H&B Stores Limited (a wholly owned subsidiary company incorporated in India)•

Dabur International Ltd., (a wholly owned subsidiary 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.)

African Consumercare Ltd (a wholly owned subsidiary body corporate incorporated in Nigeria, 90% stake wherein is held by •

Dabur International Ltd & 10% stake held by Dabur (UK) Ltd )

Asian Consumercare Pakistan (Pvt.) Ltd (a wholly owned subsidiary body corporate incorporated in Pakistan, 99.99% stake where •

in is held by Dabur International Ltd)

Naturelle LLC (a subsidiary body corporate incorporated in Emirate of RAS AI Khaimah, 100% stake wherein is held by Dabur •

International Ltd)

Dabur Egypt Trading Ltd. (a wholly owned subsidiary body corporate, incorporated in Egypt, 99% & 1% of stake wherein are held •

by Dabur International Ltd. and Dabur Egypt Ltd. respectively)

Dermoviva Skin Essentials INC (a wholly owned subsidiary body corporate incorporated in USA, 97.79% and 2.21% stakes wherein •

are held by Dabur International Ltd & Dabur India Ltd respectively

Namaste Laboratories LLC (a wholly owned subsidiary body corporate, incorporated in USA, 100% right wherein is exercised by •

Dermoviva Skin Essentials INC)

Urban laboratories International LLC (a wholly owned subsidiary body corporate incorporated in USA, 100% right wherein is •

(Rs. in lacs, except Share Data)


26

exercised by Namaste Laboratories LLC)

Healing Hair Laboratories International LLC (a wholly owned body corporate incorporated in USA, 100% rights wherein is exercised •

by Namaste Laboratories LLC)

Namaste cosmetics Ltd. (a wholly owned body corporate incorporated in Brazil, 100% rights wherein is exercised by Namaste •

Laboratories LLC)

Two wholly owned overseas subsidiary body corporates incorporated in Turkey named Hobi Kozmetik and RA Pazarlama, 100% •

stake in each is held by Dabur International Ltd

Dabur Lanka (Pvt) Ltd (a wholly owned subsidiary body corporate incorporated in Sri Lanka 100% stake wherein is held by Dabur •

International Ltd.)

In addition to the above, proportionately consolidated herein is the accounts of Forum 1 Aviation Ltd.( a domestic corporate entity

jointly controlled by parent company with others, stake of parent company being 14.28% therein) on the basis of un-audited

results.

1.3. 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 2012 except for treatment of deferred tax which has been calculated on estimated

basis.

b) Preparation of CFS including disclosures made therefore and condensation of Balance Sheet and Profit and Loss Account have

been made in terms of requirement of AS 25 mandated by ASB.

2. NOTES TO ACCOUNTS

2.1. All amounts in the financial statements are rounded off to nearest Rupees Lacs, except for those specifically stated otherwise.

2.2. Contingent Liabilities :

a) Claims against the company not acknowledged as debts:

i) In respect of civil suits filed by third parties Rs. 992 (previous year Rs. 791)

ii) In respect of claims by employees Rs. 51 (previous year Rs. 44)

iii) In respect of excise duty disputes pending with various judicial authorities Rs. 7703(previous year Rs. 7611)

iv) In respect of Sales Tax under appeal Rs. 1681 (previous year Rs. 1234)

v) In respect of Income tax under appeal Rs. 306 (previous year Rs. 386)

b) Guarantees Given :

In respect of Guarantees furnished by the company Rs. 3047 (previous year Rs. 2867)

c) Information pursuant to AS 29:

Brief particulars of provisions on disputed liabilities provided for :



27

Nature of Liability Particular of

dispute

Opening

Liability

Provision

made during

the period

Provision adjusted

during the period

Closing

Provision

Forum where the dispute

is pending

Sales Tax Classification of

Laldant Manjan

36 0 0 36 Filed review application

with High Court

Entry Tax Entry tax on car 1 0 0 1 Appeal pending before

D.C.

Sales Tax Classification of

hajmola Candy

28 0 0 28 Appeal pending before S T

Appellete

Sales Tax Tax Paid

purchase

29 0 0 29 Pending before High Court

Excise Capital Goods

removal

30 0 0 30 DC appeal

Excise Hajmola Candy

Classification

109 0 0 109 Tribunal

General Expense Product claim

lodged by third

party

33 0 0 33 Management

Income Tax Ex promoter USA

Liability

20 0 0 20 Management

Total 286 0 0 286

i) Resulting outflows against above liabilities pending before Sales Tax DC/Tribunal/High court/management, if mature, are

expected to be in succeeding financial year.

ii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.

d) Consideration money, towards acquisition of USA based entities ,contingently payable and provided for include Rs 18217

representing expected amount payable by the group over a period of 3 years to their erstwhile promoters (entrusted with the

charge of management of Namaste Laboratories LLC till date) subject to their achievement of year wise target as per earn-out

agreement. Rs.2250 approximately has been paid/adjusted against year opening due during the period pursuant to fulfillment of

first year’s target by the management with corresponding withdrawal of requisite provision. Considering confidence of the group

on the ability of erstwhile promoters to achieve targets laid down in reasonable terms, aforesaid provision has been retained in

accounts within the meaning of AS 29.

e) Commitments: Estimated Amount of contract remaining to be executed on Capital Account Rs. 13503 (previous year Rs. 6467).

2.3 Related party disclosures ( Pursuant to AS -18 )

2.3.1 Enterprise where control exists: None.

2.3.2 Other related parties in transaction with the group :

2.3.2.1 Associate - ACI Ltd., Bangladesh

2.3.2.2 Joint Venture - Forum 1 Aviation Limited



28

2.3.2.3 Key Management Personnel and relatives of such personnel: Director Relatives P D Narang Sunil Duggal Anup Sharma Rukma Rana Sikandar T Tiwana Mete Buyurgan Gary Gardner Kyle Gardner Clyde Burks

2.3.3 Related Party Transactions:

Related Parties Transaction Consolidated as on 30.09.2012

Particulars JV/Partnership

Key Management

Personal

Relatives of Key Management

personnel

Entity Under SignificantInfluence

Total Outstanding as on

period end

1. Purchase of Goods 0 0 0 0 0 0

0 0 0 (169) (169) 0

2. General Expenses 238 - 0 - 238 0

(223) - 0 - (223) (49)

3. Interest Received on Security 1 0 - 0 1 0

0 0 0 0 0 0

4. Remuneration/Exg./Pension 0 852 0 0 852 0

0 (1382) 0 0 (1382) 0

5. Employee Stock Option Scheme 0 554 - 0 554 554

0 (728) 0 0 (728) (1290)

6. Staff Welfare 0 0 71 0 71 0

0 0 (1) 0 (1) 0

7. Security Deposit - - - - - 38

- - - - - (38)

8. Guarantees & Collaterals 0 0 0 0 0 714

0 0 0 0 0 (714)

2.4 AS 30 , 31 & 32:

a. Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not being receivable/payable in

short term context), call for measurements at amortized value unless amortized value does not materially differ from unamortized

value or assets /liabilities are held at floating rate of interest.

Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on date, hereby described as

amortized value , has been considered on the basis of appropriate Government Bond rate ruling as on 30-09-2012 which is 8.15

% as against 8.4% ruling as on 31-03-2012. Such benchmarking of effective rate is attributed to expected cognizance taken by

government of the market risk , commodity price index, foreign exchange reserve, inflationary & deflationary impact on internal

rates & cyclic / non cyclic fluctuations in fiscal & monetary system for the purpose of arriving at the rate of bond.



29

b. Particulars on financial assets/liabilities where fair value/amortized cost differ from book balance.

Particulars Holding Price

(Rs. lac)

Fair Value(Rs. lacs)

Profit / (Loss)

(Rs. lac)

Head of Account Profit / (lose) being Accounted for

A. FINANCIAL ASSETS a. Held for Trading Mutual Funds

b. Available of Sale Government Bond

as on 30.09.2012as on 31.03.2012

as on 30.09.2012as on 31.03.2012

2031512165

87928714

2045612231

90038792

14165

21178

other IncomeOpening General Reserve

Investment Revaluation ReserveInvestment Revaluation Reserve

B. FINANCIAL INSTRUMENT a. Instrument hedging adverse currency fluctuation against Off Balance Exposure in Foreign Currency b. Instrument hedging adverse currency fluctuation against borrowing in foreign currency

as on 30.09.2012as on 31.03.2012

as on 30.09.2012as on 31.03.2012

0

0

-3710

-610-63

-3710

-610-63



Particulars OriginalAmount

Discount-ed

Value

Re-InstatedDiscounted

Value(Rs. lacs)

Profit / (Loss) Head of Account Profit / (lose) being Accounted

for

C. FINANCIAL LIABILITIES Long term Borrowing as on 30.09.2012

as on 31.03.2012162212

114164

1190

-548

Finance CostOpening General Reserve

2.5 The Board of directors of parent company has approved payment of interim dividend @ 65% (previous period 55%) amounting to

Rs. 13167 (previous period Rs. 11136) including tax applicable thereon.

2.6 During the period, the parent company has paid final dividend @ 75% (previous year 65%) amounting to Rs. 15190 (previous

period Rs. 11315) in respect of financial year 2011-12 after approval to the effect in the AGM dated 17.07.2012.

2.7 During the period the parent company has allotted 820357 (previous period 1323524) equity shares of Re 1/- each to the

employees upon their exercise of option under Employee Stock Option Scheme which includes allotment of 379175 equity shares

worth Rs. 4 lacs against capitalization of share premium without consideration money received in cash. Besides, options against

611121 number of equity shares have been cancelled during the period following lapse of option under relevant scheme.

2.8 17576091 (previous period 18960784) equity shares of Re.1/- each are outstanding under “Employees Stock Option Scheme” as on

30th September, 2012

2.9 During the period company has invested Rs. 212269 (previous period Rs. 151987) in current investment.

2.10 During the period company has sold current investments amounting to Rs. 203570 (previous period Rs. 176763).



30

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2.11

IN

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AS

- 17

ISSU

ED B

Y IC

AI.


31

2.12 Information (to the extent applicable) pursuant to AS 19 issued by ICAI:

The future minimum lease payment under non-cancelable operating lease :

Particulars Not Later than 1 year Later than 1 year not later

than 5 years

Later than 5 years

Building & Machine 1073 2352 373

(792) (1845) (343)

Car 72 88 0

(47) (71) (0)

Lease rent recognized during the period Rs. 124 (previous period Rs. 254)

2.13 Repayment of debt during the period:

Short Term loan from bank 7590

Besides, parent company has raised Rs. 30000 against issue of Commercial Paper during the period, out of which Rs. 25000 has

been repaid during the period itself.

2.14 Investment in joint venture :

Forum 1 Aviation Ltd :

(i) Incorporated in CFS on proportionate basis are the following assets and liabilities as on 30.09.12 and income and expenses for

the half year ended on that date of Forum 1 Aviation Ltd (a JCE, the stake of parent company therein being 14.28%) based on

its un-audited financial statements.

Particulars As on 30.09.2012 As on 31.03.2012

Assets Liabilities Assets Liabilities

Secured Loan 302 357

Creditors 36 46

Deposits 38 38

Fixed Assets 654 679

Investment 21 1

Advance to employees 1 1

Cash & Bank 20 27

Debtors 24 47

Other advances 267 256



32

ITEMS For Half Year Ended

30.09.2012 31.09.2011

INCOME

Revenue from Flying 263 177

Other Income

Total 263 177

EXPENSES

Operational Expenses 126 37

Payment to and provisions for employees 27 23

Administrative expenses 67 67

Financial expenses 18 23

Total 238 150

Profit (Forms part of profit in consolidated Profit & Loss Account) 25 27

(ii) Group commitment towards revenue expenditure of the JCE amounting to Rs. 307 ( previous period Rs. 223) has been charged to

profit and loss account under the head general charges.

2.15 (a) Pursuant to Weikfield International(UAE) LLC leaving business combination following disposal of its stake by the group ,following

assets & liabilities made their exit from the group accounts:

A. Assets Goodwill(consolidation) 225 Tangible Fixed Assets 144 Trade Receivable 24 Inventories 1 Cash & Cash Equivalent 3 397 B. Liabilities(Minority Interest) 101 C. Net assets(A-B) 296 D. Consideration money received 55 E. Deficit 241 F. Goodwill charged-off 225 G. Loss on sale of subsidiary(accounted for as exceptional item) 466



33

(b) Exit of the subsidiary necessitated following adjustments in reserves:

A. Loss on sale of subsidiary charged against surplus as exceptional item 466

B. Accumulated Reserve forming part of General Reserve towards the subsidiary transferred to surplus 26

C. Adjusted against Capital Reserve 440

(c) During the quarter Namaste Cosmetics LLC, a new body corporate has been formed in Brazil as a wholly owned subsidiary, 100%

rights therein are held by Namaste Laboratories LLC incorporated in USA.

(d) Aforesaid exit and entry from/in business combinations did not have any material impact on CFS.

2.16 Extra-ordinary items relate to prior period adjustments in net perspective.

2.17 Employees related dues including post-separation benefits of directors pertaining to employment in India & directorship of

parent company have been accounted for on the basis of actuarial computation under project unit credit method, demographic

assumptions thereon remain same as that of preceding year except for mortality rate within the age-group of 31 years to 44

years and expected return on planned assets considered at 14% and 9.25% as against respective assumptions at 13% and 9% in

preceding financial year.

2.18 Figures of earlier period/year have been rearranged in terms of current period grouping as and when necessary.



DABUR INDIA LIMITEDKaushambi, Sahibabad - 201010

Ghaziabad (U.P.), India.Tel: 0120-3982000, 3962100

www.dabur.comE-mail: [email protected]

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