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DABUR INDIA LIMITED

Half Yearly Financial Report

2012-2013

Dabur India Limited //Half Yearly Report 2012-13

Content
Board of Directors Management Discussion and Analysis Auditors Report Financial Statements Consolidated Financial Statements 4 5 8 9 20

Dabur India Limited //Half Yearly Report 2012-13

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.

countrys 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 Daburs key brands, provides a range of herbal and natural products across various FMCG categories with a focus on providing quality and affordability.

Dabur India Limited //Half Yearly Report 2012-13

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

SR GM (FINANCE) & COMPANY SECRETARY


Mr A. K. Jain

AUDITORS
M/s G. Basu & Co. Chartered Accountants

CORPORATE OFFICE
Dabur India Limited, Dabur Tower, Kaushambi, Sahibabad, Ghaziabad - 201 010, (U.P.), India Tel: 0120 - 3982000, 39412525 Fax: 0120 - 4374935 Website: www.dabur.com Email: investors@dabur.com

INTERNAL AUDITORS
PricewaterhouseCoopers Pvt. Ltd.

BANKERS
Punjab National Bank Standard Chartered Bank The Hongkong & Shanghai Banking Corporation Ltd. The Royal Bank of Scotland Citibank N.A. HDFC Bank Ltd. IDBI Bank Ltd.

REGISTERED OFFICE
8/3, Asaf Ali Road, New Delhi-110002, India Tel: 011-23253488

Dabur India Limited //Half Yearly Report 2012-13

Management Discussion and Analysis


The current macroeconomic environment continues to remain challenging in the backdrop of weak global economic environment. Indias 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. 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.

Seasonal Rainfall (Jun-Sept 2012) (in mm) 883.0

816.3 Real GDP Growth Rate - YoY (%) 9.3% 6.7% 8.4% 8.4% 6.5% Actual FY08 FY09 FY10 FY11 FY12

Normal

Source: Indian Meteorological Department (IMD)


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.

Source: CSO and RBI estimates


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 RBIs tolerance level.

WPI based Inflation (%) 7.6% 7.6% 7.8% Incremental consumption expenditure in 2011-12 over 2009-10
in Rs. billion

7.5%

7.5%

7.5%

3750 2994

Apr-12 May-12

Jun-12

Jul-12 Aug-12 Sep-12

Urban

Rural

Source: Office of Economic Adviser

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

Dabur India Limited //Half Yearly Report 2012-13

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 201213. 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.

Consumer Care Category Growth Rates (%) H1 FY13 16.7% 10.9% 17.9% 11.8% 7.5%
& OTCicals h Et r Hai re Ca e Hom e Car l Ora re a C Skinre Ca

19.0%

17.7%

lth ents tives Hea m iges e pl D p u S

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

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%.

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
Daburs 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

Dabur India Limited //Half Yearly Report 2012-13

(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.

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.

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.

Dabur India Limited //Half Yearly Report 2012-13

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 Companys 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. ii. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of audit. 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. v. 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. 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 KUMAR Partner Membership No. 9390

Place: New Delhi Date: 26th October, 2012

Dabur India Limited //Half Yearly Report 2012-13

CONDENSED BALANCE SHEET


as at 30th September 2012 Particulars As at Sep 302012 (Rs. in Lacs) As at Mar 312012

I Equity And Liabilities 1. Share holders Funds a) Share Capital b) Reserves And Surplus 2. Non-Current Liabilities a) Long Term Borrowings b) Deferred Tax Liabilities (Net) c) Long-Term Provisions
3. Current Liabilities

17,429 1,27,554 73 3,064 44,595 18,555 23,205 42,003 19,098 2,95,576

17,421 1,12,906 114 2,711 37,665 27,214 32,779 31,689 21,574 2,84,073

a) Short-Term Borrowings b) Trade Payables c) Other Current Liabilities d) Short-Term Provisions Total II Assets
1. Non-Current Assets

a) Fixed Assets i) Tangible Assets ii) Intangible Assets iii) Capital Work-In-Progress b) Non-Current Investments c) Long-Term Loans And Advances d) Other Non-Current Assets
2. Current Assets

58,570 766 1,595 16,159 40,345 7,354 36,822 48,460 21,779 38,282 22,456 2,988 2,95,576

57,819 714 1,158 15,948 33,990 8,384 39,324 52,857 22,417 26,129 22,111 3,222 2,84,073

a) Current Investments b) Inventories c) Trade Receivables d) Cash And Cash Equivalents e) Short-Term Loans And Advances f) Other Current Assets Total Accounting Policies and Notes to Accounts (A)

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

Dabur India Limited //Half Yearly Report 2012-13

CONDENSED STATEMENT OF PROFIT AND LOSS


for the Quarter and Half Year ended 30th September, 2012 (Rs. in Lacs) 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 I Revenue from operations 1,04,278 87,900 2,06,025 II Other Income 2,162 1,265 4,324 III Total Revenue (I +II) 1,06,440 89,165 2,10,349 IV Expenses Cost of materials consumed 38,204 37,200 77,394 Purchase of stock in trade 15,288 15,723 31,886 Changes in inventories of FG , WIP & Stock in trade Finished Goods 189 (6,832) (137) Work in Progress 1,271 656 535 Stock in trade 167 6 537 Employee benefits expenses 7,104 6,164 13,559 Finance costs 895 138 1,064 Depreciation and Amortisation expenses 1,663 1,593 3,455 Other Expenses 22,109 16,896 47,374 Total Expense 86,890 71,544 1,75,667 (V) Profit before exceptional and extraordinary items and tax (III - IV) 19,550 17,621 34,682 (VI) Exceptional Items - - - (VII) Profit before extraordinary items and tax (V - VI) 19,550 17,621 34,682 (VIII) Extraordinary Items - - - (IX) Profit before tax (VII - VIII) 19,550 17,621 34,682 (X) Tax expense (1) Current tax 3,912 3,525 6,939 (2) Deferred Tax 141 230 354 (XI) Profit/(Loss) for the year from continuing operations (IX - X) 15,497 13,866 27,389 (XII) Earnings per equity share ( before Extraordinary items) (1) Basic 0.89 0.80 1.57 (2) Diluted 0.89 0.79 1.56 (XIII) Earnings per equity share (after Extraordinary items) (1) Basic 0.89 0.80 1.57 (2) Diluted 0.89 0.79 1.56 Accounting Policies and Notes to Accounts (A) 1,72,570 2,715 1,75,285 71,731 29,614 (7,216) (235) 12,102 794 3,382 35,942 1,46,114 29,171 29,171 29,171 5,837 360 22,974 1.32 1.31 1.32 1.31

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

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Dabur India Limited //Half Yearly Report 2012-13

STATEMENT OF CASH FLOW


(Pursuant to AS-3) indirect method for the period ended 30th September2012 Particulars For the period ended Sep 302012 (Rs. in Lacs) For the period ended Sep 302011

A. Cash Flow from Operating Activities Net Profit Before Tax and Extraordinary Items 34,682 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) 38,938 Less: Interest Received 3,698 2,343 Profit on Sale of Investment 483 293 Profit on Sale of Assets 6 4,187 42 Operating Profit before Working Capital Changes 34,751 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) Cash Generated from Operating Activities 40,346 Tax Paid 6,355 6,355 6,362 Cash Used(-)/(+)Generated for Operating Activities (A) B. Cash Flow from Investing Activities Acquisition of Fixed Assets (2,988) Sale of Fixed Assets 57 Purchases of Investment (2,12,345) Interest Received 3,156 Proceed of Sale of Investments 2,15,468 Repayment (-)/Proceeds(+) from Loan to Subsidiaries (550) 2,798 (6,000) 90 (1,53,501) 1,507 1,75,321 (850) 16,567 33,991 29,171

4,219 33,390 2,678 30,712

14,701 16,011 6,362 9,649

Cash Used(-)/(+)Generated for Investing Activities (B)

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Dabur India Limited //Half Yearly Report 2012-13

STATEMENT OF CASH FLOW (Contd..)


(Pursuant to AS-3) indirect method for the period ended 30th September2012 Particulars For the period ended Sep 302012 (Rs. in Lacs) For the period ended Sep 302011 6 (236) 3,377 (9,128) (11,293) (1,836) (786) (19,896) 6,320 19,241 25,561 25,561 25,293 236 32

C. Cash Flow from Financing Activities Proceeds from Share Capital & Premium Repayment(-)/Proceeds (+) of Long term secured Liabilities Repayment(-)/Proceeds(+) from Short Term Loans Repayment(-)/Proceeds(+) from Other Unsecured Loans Payment of Dividend Corporate Tax on Dividend Interest Paid Net Increase(+)/Decrease (-) in Cash And Cash Equivalents (A+B+C) Cash and Cash Equivalents Opening Balance Cash and Cash Equivalents Closing Balance Cash and Cash Equivalents (year end) Balances with Banks without Restatement Unrealised Gain/(Loss) on Foreign Exchange Fluctuation Cheques / Drafts in Hand Cash-in-Hand 4 - (8,392) (41) (13,028) (2,120) (1,058) (24,635) 12,154 26,128 38,282 38,282 37,970 283 1 28

Cash Used(-)/+(Generated) in Financing Activities (C)

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

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Dabur India Limited //Half Yearly Report 2012-13

SCHEDULE A
Selected Explanatory Notes

(Rupees in lacs, except Share Data)

1.
1.1

ACCOUNTING POLICIES
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 against actual basis. 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

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.
2.1

NOTES TO ACCOUNTS
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:

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Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

Nature of Liability Sales Tax Entry Tax Sales Tax Sales Tax Excise Excise

Particular of dispute

Opening Liability

Provision made during the period 0 0 0 0 0 0 0

Provision adjusted during the period 0 0 0 0 0 0 0

Closing Provision 36 1 28 29 109 30 233

Forum where the dispute is pending Filed review application with High Court

Classification of Laldant Manjan Entry tax on car Classification of hajmola Candy Tax Paid purchase Hajmola Candy classification matter Capital Goods removal Total

36 1 28 29 109 30 233

Appeal pending before S T Appellete Pending before High Court Tribunal DC Appeal

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


Dabur Nepal Private Ltd. Dabur Egypt Ltd. Asian Consumercare Private Limited Asian Consumercare Pakistan (Pvt.) Limited H & B Stores Limited. Dabur Egypt Trading Ltd. Ra Pazarlama Hair Rejuvenation & Revitalization Nigeria Ltd Urban Lab International LLC, USA Namaste Cosmetics LTDA, Brazil 2. 4. 6. 8. 10. 12. 14. 16. 18. 20. Dabur (UK) Ltd. Dabur International Limited African Consumercare Limited Naturelle LLC. Dermoviva Skin Essentials Inc. Hobi Kozmetik Namaste Laboratories LLc, US Healing Hair Lab International LLc, US Dabur Lanka (Pvt.) Limited Weikfield International(UAE) LLC upto 26.06.2012

2.2.1 Enterprises where control exists: 1. 3. 5. 7. 9. 11. 13. 15. 17. 19.

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 Director : P D Narang Sunil Duggal

2.2.2.2 Key Management Personnel and relatives of such personnel:

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Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

2.2.3. Related Party Transactions :


Related Party Transactions as on 30.09.2012 Subsidiary JV/ Partnership 0 (-) 0 (-) (-) 307 (223) (-) (-) (-) 1 (-) (-) (-) (-) 0 (-) Key Management personnel 0 (-) 0 (-) (-) (-) (-) 521 (1259) 554 (728) (-) (-) (-) (-) (-) Entity Under Significant Influence 0 (169) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) Total Outstanding as on period end 23 (35) 702 (1766) 27 (19) 33 (49) 0 0 0 0 0 0 0 0 3200 (2650) 7125 (7125) 7125 (7125) 38 (38) 151255 (121690)

1. 2. 3. 4. 5.

Purchase of Goods Sale of Goods Royalty Expense General Expenses Interest Received on Loan

16163 (16211) 2902 (2353) 6 (5) 0 (-) 0 (9)

16163 (16380) 2902 (2353) 6 (5) 307 (223) 0 (9) 521 (1259) 717 (865) 1 0 550 (1600) (4489) 0 (1483) (-) 29564 (29189)

6. 7. 8. 9. 10. 11. 12. 13.

Remuneration (Exg./Pension) Employee Stock Option Scheme Interest Received on Sec. Deposit loan Given Investment Equity Contribution Security Deposit Guarantees & Collaterals

(-) 163 (136) (-) 550 (1600) (4489) 0 (1483) (-) 29564 (29189)

Notes: A. B. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. Rs. 16001 (Rs. 16031) 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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Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

C. D.

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). 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
a.

AS 30 , 31 & 32:
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. Holding Price (Rs. lac) Fair Value (Rs. lacs) Profit / (Loss) (Rs. lac) Head of Account Profit / (loss) being Accounted for

Particulars

A. FINANCIAL ASSETS a. Held for Trading Mutual Funds b. Available of Sale Government Bond

as on 30.09.2012 as on 31.03.2012 as on 30.09.2012 as on 31.03.2012

20315 12165 8792 8714

20456 12231 9003 8792

141 65 211 78

other Income Opening General Reserve Investment Revaluation Reserve Investment Revaluation Reserve Finance Cost Finance Cost

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 Particulars

as on 30.09.2012 as on 31.03.2012

-37 10

-37 10

as on 30.09.2012 as on 31.03.2012

-610 -63

-610 -63

Finance Cost Finance Cost

Original Amount

Discounted Value

Re-Instated Discounted Value (Rs. lacs) 119 0

Profit / (Loss)

Head of Account Profit / (Loss) being Accounted for Finance Cost Opening General Reserve

C. FINANCIAL LIABILITIES Long term Borrowing

as on 30.09.2012 as on 31.03.2012

162 212

114 164

-5 48

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Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

2.4 2.5 2.6 2.7

Outcome of test of impairment undertaken for cash generating units concluded against creation of provision against impairment loss under AS-28. 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. 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. 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 2.9 2.10 2.11

17576091 (previous period 189607840) equity shares of Re.1/- each are outstanding under Employees Stock Option Scheme as on 30th September, 2012. During the period company has invested Rs. 212269 (previous period Rs. 151987) in current investment. During the period company has sold current investments amounting to Rs. 203570 (previous period Rs. 152858). 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) Companys 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.

17

(Rupees in lacs, except Share Data)

Note: 2.12 INFORMATION PURSUANT TO AS - 17 FOODS Current Period 33,698 33,698 4,841 12,262 34,512 1,064 7,293 34,512 4,841 4,944 1,234 269 (20,619) 794 6,197 (16,751) 4,841 4,944 1,234 269 (12,262) (9,760) 9,760 4,944 1,234 269 48,008 12,262 35,746 1,064 7,293 27,389 26,560 12,868 6,037 2,05,121 26,560 12,868 6,037 2,05,121 1,71,848 1,71,848 39,725 9,760 29,965 794 6,197 22,974 Previous Period Current Period Previous Period Current Period Previous Period Current Period Previous Period OTHERS UNALLOCATED Total

Consumer Care Business Previous Period 1,39,251 1,39,251 34,512

Current Period

REVENUE External Sales Inter-segment sales

1,58,555

Total Revenue

1,58,555

Dabur India Limited //Half Yearly Report 2012-13

RESULT Segment result Unallocated corporate expenses

41,933

Operating profit

41,933

Interest expense Interest income Income Tax(Current + Deferred)

18
34,512 As on 31/03/12 89,287 89,287 13,030 4,372 1,137 18,707 15,924 18,707 15,924 21,933 21,933 17,942 As on 30/09/12 As on 31/03/12 As on 30/09/12 4,841 4,944 1,234 269 As on 31/03/12 13,031 13,031 10,007 13,030 10,017 2,078 240 187 4,372 1,137 445 403 17,942 32 152 10,007 270 255

Profit from ordinary activities

41,933

Extraordinary item Minority Interest (20,619) As on 30/09/12 1,57,761 1,57,761 1,10,295 1,10,295 1,035 678 1,146 (16,751) As on 31/03/12 1,60,442 1,60,442 1,29,566 1,29,566 3,507 1,137 2,715 1,31,169 1,57,761 2,88,930 38,007 1,10,294 1,48,301 2,988 2,309 1,146 1,18,242 1,60,442 2,78,684 24,174 1,29,566 1,53,740 14,239 3,873 2,715 27,389 22,974

Net profit

41,933

OTHER INFORMATION

As on 30/09/12

Segment assets Unallocated corporate assets

90,529

Total assets

90,529

Segment liabilities Unallocated corporate liabilities

15,692

Total liabilities

15,692

Capiltal Expenditure

1,733

Depreciation Non-cash expenses other than depreciation

1,239

Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data) 2.13 Information (to the extent applicable) pursuant to AS 19 issued by ICAI: The future minimum lease payment under non-cancelable operating lease :Not Later than 1 Years 12 (46) Car 2.14 72 (47) Lease rent recognized during the period Rs. 42 (previous period Rs. 32) 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: Apr. 2012 to Sep. 2012 27,389 1742602984 1753779883 1.57 1.56 Apr. 2011 to Sep. 2011 22,974 1741278349 1753405804 1.32 1.31 Later than 1 year Not later than 5 Years Building & Machine 6 (12) 88 (71) 0 (0) 0 (0) Later than 5 Years

Particulars

Particulars Profit after Tax (before and after adjustment of extraordinary items) Weighted average no. of shares outstanding Basic Diluted Earnings per share (of face value of Re 1/-) Basic Diluted

(Note: Profit figures are in Rs. Lacs)


2.18 2.19 All figures have been rounded off to nearest Rs. Lacs unless stated otherwise. 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.

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

19

Dabur India Limited //Half Yearly Report 2012-13

Consolidated Financial Statements


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) b) c) In the case of the condensed consolidated balance sheet, of the state of affairs of Dabur India Ltd. group as at 30th September, 2012. 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 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.

Place: New Delhi Date: 26th October, 2012

For G BASU & CO Chartered Accountants Firm Registration No. 301174E ANIL KUMAR Partner Membership No. 9390

20

Dabur India Limited //Half Yearly Report 2012-13

CONDENSED CONSOLIDATED BALANCE SHEET


as at 30th September 2012 Particulars As at Sep 302012 (Rs. in Lacs) As at Mar 312012

EQUITY AND LIABILITIES


1. Share holders Funds

a) Share Capital b) Reserves and Surplus 2. Minority Interest 3. Non-current liabilities a) Long Term borrowings b) Deferred Tax Liabilities (Net) c) Other long term liabilities d) Long-term provisions 4. Current Liabilities a) Short-term borrowings b) Trade payables c) Other current liabilities d) Short-term provisions Total II ASSETS 1. Non-current assets a) Fixed Assets i) Tangible assets ii) Intangible assets iii) Capital work-in-progress b) Non-current investments c) Long-term loans and advances d) Other non-current assets 2. Current assets a) Current investment b) Inventories c) Trade receivables d) Cash and cash equivalents e) Short-term loans and advances f) Other current assets Total Accounting Policies and Notes to Accounts (A)

17,429 1,72,600 365 53,176 3,208 298 62,527 40,039 31,651 69,835 27,738 4,78,866

17,421 1,54,297 303 68,302 2,740 57,993 34,091 25,808 77,127 24,149 4,62,231

87,351 79,713 4,422 9,139 40,983 9,070 36,844 74,432 42,579 59,686 28,378 6,269 4,78,866

84,225 79,898 2,676 8,928 37,269 10,192 39,324 82,392 46,168 41,842 26,096 3,221 4,62,231

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

21

Dabur India Limited //Half Yearly Report 2012-13

Condensed Consolidated Statement of Profit & Loss Account


for the six months ended 30th September 2012 DESCRIPTION For the period ended Sep 302012 2,99,922 4,675 3,04,597 1,17,675 26,931 861 66 2,877 22,738 3,614 5,372 80,256 2,60,390 44,207 (466) 43,741 8 43,749 7,933 486 35,330 153 35,177 2.03 2.01 2.03 2.01 (Rs. in Lacs) For the period ended Sep 302011 2,47,700 2,861 2,50,561 1,10,473 23,126 (7,192) 304 0 18,925 2,983 5,006 59,266 2,12,891 37,670 0 37,670 0 37,670 6,961 535 30,174 17 30,157 1.73 1.72 1.73 1.72

I Revenue from operations II Other Income III Total Revenue (I +II) IV Expenses Cost of materials consumed Purchase of stock in trade Changes in inventories of FG , WIP & Stock in Trade Finished Goods Work in Progress Stock in trade Employee benefits expenses Finance cost Depreciation & Amortisation Expenses Other Expenses Total Expense (V) Profit before exceptional and extraordinary items and tax (III - IV) (VI) Exceptional Items (VII) Profit before extraordinary items and tax (V - VI) (VIII) Extraordinary Items (IX) Profit before tax (VII - VIII) (X) Tax expense (1) Current tax (2) Deferred Tax (XI) Profit/(Loss) for the year from continuing operations (IX - X) (XII) Minority Interest (XIII) Profit after Minority Interest (XIV) Earnings per equity share ( before Extraordinary items) (1) Basic (2) Diluted (XV) Earnings per equity share ( After Extraordinary items) (1) Basic (2) Diluted Accounting Policies and Notes to Accounts (A)

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

22

Dabur India Limited //Half Yearly Report 2012-13

STATEMENT OF CASH FLOW


(Pursuant to AS-3) Indirect Method Particulars For the period ended Sep 302012 (Rs. in Lacs) For the period ended Sep 302011

A. Cash Flow From Operating Activities Net Profit Before Tax, Exceptional and Extraordinary Items 44,207 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) 48,261 Less: Interest Received 4,045 2,476 Profit on Sale of Investment 483 293 Profit on Sale of Assets 6 4,534 55 Operating Profit Before Working Capital Changes 43,727 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) Cash Generated From Operating Activities 45,641 Tax Paid 13,323 13,323 7,059 Cash Used(-)/(+)Generated For Operating Activities (A) B. Cash Flow From Investing Activities Acquisition of Fixed Assets (9,312) Sale of Fixed Assets 454 Purchases of Investment (2,12,345) Interest Received 4,045 Proceed of Sale of Investments 2,15,234 Repayment (-)/Proceeds(+) from Loan to Subsidiaries - (1,924) (11,308) 662 (1,53,501) 2,476 1,75,791 14,120 32,318 37,670

2,467 40,137 2,824 37,313

24,238 13,075 7,059 6,016

Cash Used(-)/(+) Generated for Investing Activities (B)

23

Dabur India Limited //Half Yearly Report 2012-13

STATEMENT OF CASH FLOW (Contd..)


(Pursuant to AS-3) Indirect Method Particulars For the period ended Sep 302012 (Rs. in Lacs) For the period ended Sep 302011

C. Cash Flow From Financing Activities Proceeds From Share Capital & Premium Repayment(-)/Proceeds (+) of Long Term Secured Liabilities Repayment(-)/Proceeds(+) from Short Term Loans Repayment(-)/Proceeds(+) from other Unsecured Loans Payment of Dividend Corporate Tax on Dividend Interest Paid Net Increase(+)/Decrease (-) In Cash And Cash Equivalents (A+B+C) Cash And Cash Equivalents Opening Balance Cash And Cash Equivalents Closing Balance 4 298 5,948 - (13,066) (2,120) (3,614) (12,550) 17,844 41,842 59,686 6 3,036 (259) (611) (11,293) (1,837) (2,999) (13,957) 6,179 27,242 33,421 32,976 217 228

Cash Used(-)/+(Generated) In Financing Activities (C)

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

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

24

Dabur India Limited //Half Yearly Report 2012-13

SCHEDULE A
Selected Explanatory Notes

(Rs. in lacs, except Share Data)

1.
1.1

ACCOUNTING POLICIES
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

25

Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

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


statements for the year ended 31st March 2012 except for treatment of deferred tax which has been calculated on estimated basis.

a) Accounting policies and principles of consolidation followed herein remain in terms of same applied in consolidated financial

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.
2.1.

NOTES TO ACCOUNTS
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 :

26

Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

Nature of Liability

Particular of dispute

Opening Liability 36 1 28 29 30 109 33

Provision made during the period 0 0 0 0 0 0 0

Provision adjusted during the period 0 0 0 0 0 0 0

Closing Provision 36 1 28 29 30 109 33

Forum where the dispute is pending Filed review application with High Court Appeal pending before D.C. Appeal pending before S T Appellete Pending before High Court DC appeal Tribunal Management

Sales Tax Entry Tax Sales Tax Sales Tax Excise Excise General Expense

Classification of Laldant Manjan Entry tax on car Classification of hajmola Candy Tax Paid purchase Capital Goods removal Hajmola Candy Classification Product claim lodged by third party

Income Tax

Ex promoter USA Liability Total

20 286

0 0

0 0

20 286

Management

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 years 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
2.3.1 2.3.2

Related party disclosures ( Pursuant to AS -18 )


Enterprise where control exists: None. 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

27

Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

2.3.2.3 Key Management Personnel and relatives of such personnel:

Director P D Narang Sunil Duggal Anup Sharma Rukma Rana Sikandar T Tiwana Mete Buyurgan Gary Gardner Clyde Burks

Relatives

Kyle Gardner

2.3.3 Related Party Transactions: Related Parties Transaction Consolidated as on 30.09.2012 Particulars JV/ Partnership 0 0 2. 3. 4. 5. 6. 7. 8. General Expenses Interest Received on Security Remuneration/Exg./Pension Employee Stock Option Scheme Staff Welfare Security Deposit Guarantees & Collaterals 238 (223) 1 0 0 0 0 0 0 0 0 0 Key Management Personal 0 0 0 0 852 (1382) 554 (728) 0 0 0 0 Relatives of Key Management personnel 0 0 0 0 0 0 0 0 71 (1) 0 0 Entity Under Significant Influence 0 (169) 0 0 0 0 0 0 0 0 0 0 Total Outstanding as on period end 0 0 0 (49) 0 0 0 0 554 (1290) 0 0 38 (38) 714 (714)

1.

Purchase of Goods

0 (169) 238 (223) 1 0 852 (1382) 554 (728) 71 (1) 0 0

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.

28

Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

b.

Particulars on financial assets/liabilities where fair value/amortized cost differ from book balance. Holding Price (Rs. lac) Fair Value (Rs. lacs) Profit / (Loss) (Rs. lac) Head of Account Profit / (lose) being Accounted for

Particulars

A. FINANCIAL ASSETS a. Held for Trading Mutual Funds b. Available of Sale Government Bond 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 Particulars

as on 30.09.2012 as on 31.03.2012 as on 30.09.2012 as on 31.03.2012 as on 30.09.2012 as on 31.03.2012

20315 12165 8792 8714 0

20456 12231 9003 8792 -37 10

141 65 211 78 -37 10

other Income Opening General Reserve Investment Revaluation Reserve Investment Revaluation Reserve Finance Cost Finance Cost

as on 30.09.2012 as on 31.03.2012

-610 -63

-610 -63

Finance Cost Finance Cost

Original Amount

Discounted Value

Re-Instated Discounted Value (Rs. lacs) 119 0

Profit / (Loss)

Head of Account Profit / (lose) being Accounted for

C. FINANCIAL LIABILITIES Long term Borrowing

as on 30.09.2012 as on 31.03.2012

162 212

114 164

-5 48

Finance Cost Opening General Reserve

2.5 2.6 2.7

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. 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. 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 2.9

17576091 (previous period 18960784) equity shares of Re.1/- each are outstanding under Employees Stock Option Scheme as on 30th September, 2012 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).

29

2.11 INFORMATION PURSUANT TO AS - 17 ISSUED BY ICAI. FOODS Current Period 38,729 38,729 6,676 12,533 45,072 3,614 8,419 45,072 6,676 5,807 (540) (537) 1,278 319 (24,566) 458 153 45,072 As on As on As on 31/03/12 30/09/12 31/03/12 1,87,850 1,87,850 71,138 71,138 10,442 3,742 726 1,303 515 4,308 20,521 16,280 2,527 39 91 20,521 16,280 2,527 42,785 38,035 2,888 1,545 1,110 1,110 317 163 42,785 38,035 2,888 1,545 As on 30/09/12 As on 31/03/12 As on 30/09/12 22,920 22,920 18,318 18,318 57 217 6,676 5,807 (540) (537) 1,278 319 (25,177) As on As on 31/03/12 30/09/12 13,831 2,23,496 13,831 10,237 1,87,909 10,237 570 390 1,87,909 931 941 1,312 1,85,420 1,85,420 6,783 1,689 3,037 2,23,496 2,07,429 2,07,429 6,676 5,807 (540) (537) 1,278 319 (12,533) 2,983 7,496 (20,487) 17 (20,504) As on 31/03/12 10,008 (10,008) 5,807 -540 -537 1,278 319 30,408 2,738 1,787 13,133 6,214 2,98,457 60,353 12,533 47,820 3,614 8,419 35,787 458 153 3,5176 As on 30/09/12 2,49,299 2,23,496 4,72,795 1,00,926 1,87,909 2,88,836 7,464 4,060 1,312 30,408 2,738 1,787 13,133 6,214 2,98,457 2,46,691 2,46,691 50,661 10,008 40,653 2,983 7,496 30,174 17 30,157 As on 31/03/12 2,41,261 2,07,429 4,48,690 98,765 1,85,420 2,84,185 22,420 7,287 3,037 Previous Period Current Period Previous Period Current Period Previous Period Current Period Previous Period Current Period Previous Period Retail OTHERS UNALLOCATED Total Consolidated

(Rupees in lacs, except Share Data)

Consumer Care Business Previous Period 2,08,282 2,08,282 45,072

Current Period

REVENUE External Sales Inter-segment sales

2,43,857

Total Revenue

2,43,857

RESULT Segment result Unallocated corporate expenses

52,940

Dabur India Limited //Half Yearly Report 2012-13

Operating profit

52,940

Interest expense Interest income Income Tax(Current + Deferred)

Profit from ordinary activities

52,940

30

Exceptional item/Extraordinary Items Minority Interest

Net profit

52,940

OTHER INFORMATION

As on 30/09/12

Segment assets Unallocated corporate assets

1,80,706

Total assets

1,80,706

Segment liabilities Unallocated corporate liabilities

59,560

Total liabilities

59,560

Capiltal Expenditure

5,922

Depreciation Non-cash expenses other than depreciation

2,085

Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

2.12

Information (to the extent applicable) pursuant to AS 19 issued by ICAI: The future minimum lease payment under non-cancelable operating lease : Not Later than 1 year 1073 (792) 72 (47) Later than 1 year not later than 5 years 2352 (1845) 88 (71) Later than 5 years 373 (343) 0 (0)

Particulars Building & Machine Car

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
(i)

Investment in joint venture :


Forum 1 Aviation Ltd : 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 Secured Loan Creditors Deposits Fixed Assets Investment Advance to employees Cash & Bank Debtors Other advances

As on 30.09.2012 Assets Liabilities 302 36 38 654 21 1 20 24 267 679 1 1 27 47 256

As on 31.03.2012 Assets Liabilities 357 46 38

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Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

ITEMS INCOME Revenue from Flying Other Income Total EXPENSES Operational Expenses Payment to and provisions for employees Administrative expenses Financial expenses Total Profit (Forms part of profit in consolidated Profit & Loss Account) (ii) 126 27 67 18 238 25 263 263

For Half Year Ended 30.09.2012 31.09.2011 177 177 37 23 67 23 150 27

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

32

Dabur India Limited //Half Yearly Report 2012-13

(Rupees in lacs, except Share Data)

(b) (c) (d) 2.16 2.17

Exit of the subsidiary necessitated following adjustments in reserves: A. B. C. Loss on sale of subsidiary charged against surplus as exceptional item Accumulated Reserve forming part of General Reserve towards the subsidiary transferred to surplus Adjusted against Capital Reserve 466 26 440

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. Aforesaid exit and entry from/in business combinations did not have any material impact on CFS. Extra-ordinary items relate to prior period adjustments in net perspective. 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.

For Dabur India Limited Dr. Anand C. Burman, Chairman P.D. Narang, Whole-time Director Sunil Duggal, Whole-time Director A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary Place: New Delhi Date: 26th October, 2012

As per our report of even date attached for G.BASU & CO. Chartered Accountants Firm Regn No: 301174E ANIL KUMAR Partner Membership No: 9390

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DABUR INDIA LIMITED Kaushambi, Sahibabad - 201010 Ghaziabad (U.P.), India. Tel: 0120-3982000, 3962100 www.dabur.com E-mail: investors@dabur.com