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Management and employees. Good governance practices in the Company include adoption of best Board practices.. Board of Directors Composition of the Board As on March 31..... Strong corporate governance is indispensable for safeguarding the interests of shareholders and other stakeholders... resulting in creation of value and wealth for the shareholders on sustainable and long-term basis. This chapter. with not less than 50 per cent of the Board comprising NonExecutive Directors. As a Company. Corporate Governance is integral to the philosophy of the Company in its pursuit of excellence.. During the year. at least one-half of the Board of the Company consisting of Independent Directors.. As regards conformity with Clause 49 of the listing agreement.. partners.. This value system translates into institutionalizing structures and procedures that enhance the efficacy of the Board and inculcate a culture of transparency. which stipulates that a Company shall have an optimum combination of Executive and NonExecutive Directors.. beyond merely complying with mandatory requirements. Dabur believes good Corporate Governance and transparency in actions of the Management to be the key to building strong trust with the Company's stakeholders. It envisages attainment of the highest level of transparency. Analjit Singh were appointed to the Board as Non-Executive Independent Directors. The Company's philosophy is to achieve business excellence and optimize longterm value for its shareholders on a sustained basis through ethical business conduct. respect and protection of minority views and interests... who is a Non-Executive Promoter Director. accountability and equity in all facets of its operations and all its interactions with shareholders. In line with Dabur's commitment to good Corporate Governance practices. growth. 2008 and on the same day Mr.. HH Maharaja Gaj Singh resigned from the Board on October 30. . Besides the Chairman.R eport on Corporate Governance Corporate Governance refers to the blend of law. . This attitude of Dabur has strengthened the bond of trust with its stakeholders. it is informed that two Independent Directors have already been appointed by the Company on October 30.... accountability and integrity across the Company... the main role of the Company's Board of Directors is to oversee how the Management is serving the interests of all stakeholders. Corporate Governance is the key factor in attaining fairness for all stakeholders and achieving organizational efficiency. two Non-Executive Promoter Directors and five NonExecutive Independent Directors. A detailed policy is established to provide a direction and framework for managing and monitoring the Company in accordance with the principles of good Corporate Governance. 2008 and the appointment of one further Independent Director is under process and shall be completed shortly. lenders and government. there was a reorganization of the Board. Dabur's Board consists of 11 members. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance on a sustained basis is evident from the fact that it had put in place systems and procedures well before these become mandatory. employees... thus ensuring fairness in all transactions within and outside the Company with investors. and going beyond the mandated Corporate Governance Code requirements of SEBI. fair and transparent processes and reporting systems.. employees.. and institutionalization of fair and transparent reporting systems in true spirit. regulations and voluntary practices that are able to attract the best of capital and talent. The Company has been focusing.. Albert Wiseman Paterson and Mr. 2009. 45 Corporate Governance Philosophy Dabur's philosophy of Corporate Governance is based on preserving core values and ethical business conduct. and value creation. the Board comprises three Executive Directors (of whom one is Promoter Director).. customers. competitors and the society at large. Dabur's initiatives towards this end include: professionalization of the Board. and always will focus. is a fundamental shared value of Dabur's Board of Directors. and critical to the Company's success. on long-term value creation for all its shareholders... The Company understands and respects its fiduciary role and responsibility towards shareholders and strives hard to meet their expectations... while looking after the welfare of multiple stakeholders. creditors and regulatory bodies.. reports Dabur's compliance with Clause 49 and highlights the additional initiatives taken in line with international best practices. Effective Corporate Governance needs to internalise and adopt a core set of values which further strengthen the Management and the decision-making process... Commitment to maximising shareholder value on a sustained basis. The Company's commitment towards adoption of sound governance. and also with the society at large. along with the chapters on Management Discussion and Analysis and Additional Shareholders Information. and where the NonExecutive Chairman is the promoter of the Company. at par with global standards. Dabur's Board of Directors and Management are deeply committed to pursuing growth by adhering to the highest national and international standards of Corporate Governance... employees.

October 30. which may affect independence of the Director. Narayan Albert Wiseman Paterson$ Analjit Singh$ Category No. its promoters. 2009.f October 30. Table 2 gives details of Shareholding of Non-Executive Directors. its subsidiaries and associates. 2. Narayan ID 5 4 R C Bhargava ID 5 5 Albert Wiseman Paterson$ ID 3 0 Analjit Singh$ ID 3 0 # * $ ** PD – Promoter Director. of other Directorships and committee memberships/chairmanships** Other Directorships 5 5 3 7 3 1 NA 1 3 8 0 13 Committee Committee Memberships Chairmanships 2 1 1 3 0 1 NA 0 0 4 0 0 0 0 0 0 1 0 NA 0 0 4 0 0 Number of Board Meetings Held Attended Dr. nor are they Chairman of more than five committees in which they are members. 2008. service providers or customers or lessors or lessees of the Company. July 28. 2008. its Directors.f. its senior Management.e.f October 30. The Company has held at least one Board meeting in every three months. • Are not substantial shareholders of the Company i. As mandated by Clause 49. Appointed as additional Director w. as stipulated under Clause 49. • Are not material suppliers. Excluding private limited companies. ID – Independent Non-Executive Director. do not have any material pecuniary relationships or transactions with the Company. Directors' attendance record and Directorships held As mandated by the Clause 49. the Audit Committee and the Shareholders / Investors Grievance Committee are considered. 1. Table 2: Shareholding of Non-Executive Directors Name of Director Dr Anand Burman Amit Burman Mohit Burman HH Gaj Singh* R C Bhargava P N Vijay Dr. November 21. 2008.e. foreign companies and companies under section 25 of the Companies Act. and Legal firm(s) and consulting firm(s) that have a material association with the Company.e. $Appointed as additional Director w.f.e. Table 1: Composition of the Board of Directors of Dabur India Limited Name of the Directors Category # Attendance Particulars Last AGM Yes Yes Yes No Yes Yes No Yes Yes No NA NA No. 1 paid up) PD / NED PD / NED PD / NED ID ID ID ID ID ID 111000 0 0 6000 0 0 0 0 0 Independent Directors on Dabur's Board: • Apart from receiving Director's remuneration. Table 1 gives the details of the Board as on March 31. Anand Burman Chairman /PD / NED 5 5 Amit Burman Vice Chairman/ PD / NED 5 4 Pradip Burman PD / ED 5 4 Mohit Burman PD/NED 5 4 P D Narang ED 5 5 Sunil Duggal ED 5 5 HH Gaj Singh* ID 2 0 P N Vijay ID 5 4 S. 2009. S. or were not partners or executives during the preceding three years of any of the following: Statutory audit firm or the internal audit firm that is associated with the Company. NED – Non-Executive Director. none of the Directors are members of more than 10 Board level committees. which may affect independence of the Director.Number of Board Meetings The Board of Directors met five times during the year: on April 30. of shares held (Re. the 46 . • Have not been an executive of the Company in the immediately preceding three financial years. 2008. October 30. 1956.e. 2008. 2008. October 30. • Are not related to promoters or persons occupying Management positions at the Board level or at one level below the Board. The maximum gap between any two meetings was less than four months. 2008 and January 28. Details of other Board Directorships are separately mentioned in ‘Annexure 1’. Only two Committees viz. 2008. • Are not partners or executives. ED – Executive Director Ceased to be a Director w. *Ceased to be a Director w. owning two per cent or more of the block of voting shares.

. and a Chief Executive Officer (CEO) . • Information on recruitment and remuneration of senior officers just below the level of Board. • The Chairman: His primary role is to provide leadership to the Board in achieving goals of the Company in accordance with the charter approved by the Board. as part of the agenda papers well in advance of the Board meetings. • Details of any joint venture or collaboration agreement.. • Minutes of the Board Meetings of the subsidiary companies.... which involves possible public or product liability claims of substantial nature. one Executive Promoter Director and six NonExecutive Directors.. • Details of dealings in company’s share by members of board/senior management. prepared by the Company. Investments and Guarantees made/ given by the Company. implementation of voluntary retirement scheme. The policy of the Company is to have a Non-Executive Chairman . which is not in the normal course of business.. Also... any material effluent or pollution problems. including any judgement or order which may have passed strictures on the conduct of the Company or taken an adverse view regarding another enterprise that can have negative implications on the Company.. or substantial non-payment for goods sold by the Company. • Significant labour problems and their proposed solutions. • Details of Inter Corporate Loans.... assets... brand equity or intellectual property and any other acquisition. There is clear demarcation of responsibility and authority among them. Inter-alia. statutory nature or listing requirements and shareholders' service. a Corporate Affairs Director. for the 47 . • Sale of material nature. two Non-Executive Promoter Directors . • Minutes of the meetings of the Audit Committee and other committees of the Board. including the appointment or removal of Chief Financial Officer and Company Secretary. next generation organization that is dedicated to the well-being of each and every household. • Quarterly results for the Company and its operating divisions and business segments. • Non-compliance of any regulatory. Information Supplied to the Board The Board has complete access to all information with the Company. • Changes in Shareholding Pattern of the Company.... • Annual operating plans and budgets and any update thereof. • Details of any merger or demerger actions. like signing of wage agreement.. • Quarterly details of foreign exchange exposures and steps taken by the Management to limit the risks of adverse exchange rate movement.. All Board meetings are governed by a structured agenda which is backed by comprehensive background information. The Board has established procedures to enable the Board to periodically review compliance reports of all laws applicable to the Company. • Details of transactions with Related Parties. prosecution notices and penalty notices. • Capital budgets and any updates thereof. • Detailed status on the Business Risks being faced by the Company and their mitigation plan. etc.. • Details of commercial dealings by firms/companies in which members of the board/senior management or their relatives hold shares with the company. • Transactions that involve substantial payment towards goodwill. etc.. • Any material default in financial obligations to and by the Company.Dr Anand Burman. not only within India but across the globe. subsidiaries.. Role of Board Members Dabur India Limited has laid down a clear policy defining the structure and role of Board members. He is responsible for monitoring the core Management team and in transforming the Company into a world-class. such as nonpayment of dividend.. • Any issue. • Fatal or serious accidents... of investments... He is responsible.. dangerous occurrences. • Materially important show cause. as well as steps taken by the Company to rectify instances of noncompliance.. demand. • Statement showing significant transactions and arrangements entered into by the subsidiary companies. inter-alia.Mr Sunil Duggal.. the following information is regularly provided to the Board.. delay in share transfer... Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance • Are not less than 21 years of age. as the Chairman of the Board he is responsible for all the Board matters.. • Details of investment of surplus funds available with the Company. if material. Any significant development on Human Resources / Industrial Relations front. or is tabled in the course of the Board meeting..

business strategies etc. if any. 48 . All fees and compensation. Basic understanding of finance and business Other directors could be based on Company's priority at a particular time viz: . Development & Control and Compliance The constitution of the board will be as follows: A Promoter Non Executive Chairman. Desirable FMCG experience Basic understanding of Finance Experience with FMCG or other consumer products Essential 2-3 years experience as a CEO. preferably of an MNC in India Consultant/Academician with experience in FMCG Industry and business strategy. paid to any NonExecutive Director. including Independent Directors. is fixed by the Board of Directors and is previously approved by the shareholders at the General Body Meeting. which are broadly based on: Independent Corporate Governance Guiding Strategy and Enhancing Shareholders’ Value Monitoring Management Compensation Performance. external contacts. as well as its individual members. and other Management matters which are approved by the Board. Board Membership Criteria The Nomination Committee works with the entire Board to determine the appropriate characteristics. like performance. • The CEO and Executive Directors are responsible for implementation of corporate strategy. They are also responsible for achieving the annual business plan.working of the Board and for ensuring that all relevant issues are placed before the Board and that all Directors are encouraged to provide their expert guidance on the relevant issues raised in the meetings of the Board. play a critical role in imparting balance to the Board processes by providing an independent Key Skill Area Strategy/Business Leadership Corporate Strategy Consultant Sales and Marketing experience judgement on various issues raised in the Board meetings. finance and law for the office of Directors of the Company. He is also responsible for formulating the corporate strategy along with the Board of Directors.Expertise in commodity procurement. Two executive members. The skill profile of Independent Board members will be driven by the key tasks defined by the Board. skills and experience for the Board as a whole. including Independent Director. The selection of Board members is based on recommendations of the Nomination Committee. • Non-Executive Directors. Six non executive independent Directors constituting 50% of the board. . Three Promoter`s Family members. The matrix below highlights the skills and expertise required from established members in the professions of accountancy. brand equity planning.Knowledge of export markets that Dabur is focusing on. At least 10 years experience in sales and marketing Good understanding of commercial processes 2-3 years as head of sales or marketing Corporate law Finance Trade Policy & Economics Administration & Government Relations Ayurvedic specialist Expert knowledge of Corporate Law At least 5 years as a CFO or as head of a merchant banking operation Expert Knowledge of Trade & Economic Policies Retired bureaucrat Ayurvedic doctor with a minimum of 20 years experience as a practitioner/ researcher Experience in trade/ consumer related laws FMCG experience FMCG experience Basic understanding of finance and business.

.. Narang and Mr Sunil Duggal were issued 81. P. the Company did not advance any loans to any of its Directors.. Narang. as contained in the resolution passed in the aforesaid meeting. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance Remuneration paid to Directors Table 3: gives details of remuneration paid to Directors for the year 2008-09 Name of the Director Dr. The Code is intended to serve as a basis for ethical decision-making in conduct of professional work. Under this framework.com. Sunil Duggal. and a fixed timeline is set for achieving the same.D. P. At Dabur.... the same are then assessed... and control systems instituted to ensure that the risks in each business process are mitigated. 2008. 2007. Narang and Mr. Pursuant to the approval of shareholders in the Annual General Meeting held on September 9. which drills down from the CEO 49 Risk Management Dabur has established comprehensive risk assessment and minimization procedures.. risks are identified as per each process flow..e. The Company has adopted COSO framework for internal control... **Appointed as additional Director w. An amount of Rs.21 Lac has been provided towards post-separation benefits of Executive Directors namely Mr.D.. During 2008-2009.dabur.. The Chief Risk Officer (CRO) is responsible for the overall risk governance in the Company and reports directly to the Management Committee (MANCOM). The Code of Conduct is available on the website of the company www. the reports of compliance to all applicable laws and regulations.f. Mr. 429. namely Mr. put in place and enforced through the process owner. we have a structure in place to identify and mitigate the various risks faced by the Company from Code of Conduct Commitment to ethical professional conduct is a must for every employee. The Options are exercisable at par.. 1998 and subsequently on September 5.. The Company has developed a very comprehensive Legal Compliance Manual. is three months. Anand Burman Amit Burman Pradip Burman Mohit Burman P D Narang Sunil Duggal HH Gaj Singh* P N Vijay S Narayan R C Bhargava Analjit Singh** Albert Wiseman Paterson** Total Sitting Fees 135000 105000 0 60000 0 0 0 300000 225000 195000 0 0 1020000 Salary and Perquisites 0 0 4272178 0 21301926 21212796 0 0 0 0 0 0 46786899 Superannuation Fund 0 0 353466 0 1657337 1484017 0 0 0 0 0 0 3494820 Stock Option 0 0 0 0 14714522 13997857 0 0 0 0 0 0 28712379 Commission 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 135000 105000 4625644 60000 37673784 36694670 0 300000 225000 195000 0 0 80014098 * Ceased to be a member from October 30. accept and provide appropriate professional views. in addition to the above remuneration.. which are reviewed by the Board periodically.382 and 72. ...659 Stock Options respectively during the year. controls are designed. and be upright in his conduct and observe corporate discipline.. A declaration signed by the Chief Executive Officer (CEO) to this effect is enclosed at the end of this report.. which consists of various functional heads. Pradip Burman.. At every Board meeting.. new risks are identified. Mr P..D.. The Board provides oversight and reviews the Risk Management Policy on a quarterly basis. All Board members and senior Management personnel have affirmed compliance with the Code of Conduct. on cessation of their employment and directorship with the Company.. certain Directors are entitled to post separation fee.... time to time. of Dabur.. the risk register is reviewed by the Board. on a quarterly basis. Legal Compliance Reporting: The Board of Directors reviews in detail. Pradip Burman and Mr. The notice period for the three Executive Directors... 2002 and July 13.. October 30... 2008. The Code of Conduct states that each individual in the organization must know and respect existing laws. having vesting period spread from 1 to 5 years and exercisable over a period of three years after vesting.. including Board members and senior Management.

in accounting policies and practices and reasons for the same. including the number of meetings held during the financial year and the related attendance. • Reviewing. Mr. with the Management. of Meetings Held Attended 8 8 8 8 8 7 with particular reference to: Matters required to be included in the Director's Responsibility Statement to be included in the Board's report in terms of clause (2AA) of section 217 of the Companies Act. A K Jain. is the Secretary to the Committee. February 10. Qualifications in the draft audit report. • Reviewing. with fixation of accountability and reporting of steps taken for rectification of noncompliance. System-based alerts are generated until the user submits the Compliance Report. sufficient and credible. Shareholders/Investors Grievance and Share Transfer Committee. S. 2009 and February 25. Bhargava and Dr. 2008. The functions of the Audit Committee include the following: • Oversight of the Company's financial reporting process and disclosure of its financial information to ensure that the financial statement is correct.to the executive-level person (who is primarily responsible for compliance) within the Company. The time gap between any two meetings was less than four months. All members of the Audit Committee have accounting and financial management expertise. Remuneration cum Compensation Committee.on April 30. if any. 2008 to answer shareholders` queries. Significant adjustments made in the financial statements arising out of audit findings. the statement of uses/application of funds raised through an issue (public issue. Narayan. July 28. They are Mr. • Recommending to the Board the appointment. 2008. 50 . 2009. Changes. Mr. adequacy of the internal control systems. 2009. if required. 2008. • Approval of payment to statutory auditors for any other services rendered by the statutory auditors. re-appointment and. R. January 28. Mr. using the e-nforce Compliance Tool. The Board is responsible for constituting. are provided below: The Director responsible for the finance function. Compliance with listing and other legal requirements relating to financial statements. the annual financial statements before submission to the Board for approval. and Nomination Committee. rights issue. P N Vijay (ID) Chairman Mr. with the Management. 2008. Major accounting entries involving estimates based on the exercise of judgment by the Management. P N Vijay (Chairman). with the Management. performance of statutory and internal auditors.). etc. the replacement or removal of the statutory auditor and the fixation of audit fees. Disclosure of any related party transactions. The Chairman of the Audit Committee attended the Annual General Meeting (AGM) held on July 10. internal auditors and cost auditors are permanent invitees to the Audit Committee. • Reviewing. the Audit Committee comprises three Independent Directors. the quarterly financial statements before submission to the Board for approval. General Manager (Finance) & Company Secretary. Any non-compliance is seriously taken up by the Board. July 7. assigning. the head of internal audit and the representative of the statutory auditors. Meetings The Audit Committee held eight meetings during 2008-09:. S Narayan (ID) Member Committees of the Board Dabur has four Board level committees: Audit Committee. 2009. R C Bhargava (ID) Member Dr. and making appropriate recommendations to the Board to take up steps in this matter. with provision for escalation to the higher-ups in the hierarchy. 2008. co-opting and fixing the terms of reference for members of various committees. a) Audit Committee Composition As on March 31. September 23. with the Management. the statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilization of the proceeds of a public or rights issue. preferential issue. • Reviewing. Attendance record The details of attendance of the Audit Committee meetings are given in Table 4: Table 4: Attendance record of Audit Committee Name of Members (Category) Status No. 1956. Details on the role and composition of these committees. C. The process of Compliance Reporting is fully automated. October 30.

• Management letters / letters of internal control weaknesses issued by the statutory auditors. shareholders (in case of non-payment of declared dividends) and creditors.. • Carrying out any other function as is mentioned in the terms of reference of the Audit Committee... etc). including the structure of the internal audit department.. Audit Committee Report for the year ended March 31. • Appointment. their evaluation of the Company's internal controls and the overall quality of financial reporting. preferential issues by major category (capital expenditure.. • Discussion with internal auditors any significant findings and follow-ups there on.. • Details of material individual transactions with related parties or others. • Statement of significant related party transactions (as defined by the Audit Committee). • Internal audit reports relating to internal control weaknesses... statement certified by the statutory auditors. if any.. staffing and seniority of the official heading the department. wherever considered necessary. • To look into the reasons for substantial defaults in payment to the depositors... • Discussion with statutory auditors before the audit commences. of transactions with related parties in the ordinary course of business..... in summary form. Based on its review and discussions conducted with the Management and the independent auditors. along with the Management's justification for the same. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance • Reviewing the adequacy of internal audit function.. In this regard... reporting structure coverage and frequency of internal audit. The Audit Committee is also presented with the following information on related party transactions (whenever applicable): • A statement. The Management also presented to the Committee the Company's financial statements and also represented that the Company's financial statements had been drawn in accordance with the Indian GAAP and IFRS. about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern. preferential issues for purposes other than those stated in the offer document/prospectus/notice (whenever applicable). detailing the use of funds raised through public issues. as part of the quarterly declaration of financial results (whenever applicable).. submitted by Management.. which are not on an arm's length basis. the Committee discussed with the Company's internal auditors and independent auditors the overall scope and plan for their respective audits. • Obtain legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise. • Details of material individual transactions with related parties. The Committee also discussed the results of their examinations.. which are not in the normal course of business. rights issues. 2009 To the Shareholders of Dabur India Limited: Each member of the Audit Committee is an Independent Director. sales and marketing. • The uses/applications of funds raised through public issues. to: • Investigate any activity within its terms of reference and to seek any information it requires from any employee. Dabur has systems and procedures in place to ensure that the Audit Committee mandatorily reviews: • Management Discussion and Analysis of financial conditions and results of operations.. The Audit Committee is empowered.. debenture holders. in case the same is existing..... The independent auditors are responsible for performing an independent audit of the Company's financial statements in accordance with the Indian GAAP and IFRS and for issuing a report thereon.. • To review the functioning of the Whistle-Blower mechanism. according to the definition laid down in Clause 49 of the Listing Agreement with the relevant stock exchanges.. rights issues. • Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board... The Management is responsible for the Company's internal controls and financial reporting process. pursuant to its terms of reference. the Audit Committee believes that the Company's financial statements are fairly presented in 51 .... • On an annual basis. working capital... The Committee is responsible for overseeing the processes related to financial reporting and information dissemination. removal and terms of remuneration of the Chief Internal Auditor.

2008. on behalf of the Board and on behalf of the shareholders. 2008. Narayan (ID) Member 4 Dr. Exercise period within which the employee should exercise the option and that option would lapse on failure to exercise the option within the exercise period. The Committee is recommending to the Board the re-appointment of M/s G Basu & Co. Chartered Accountants.on April 30. • Framing the ESPS/ESOS and recommending the same to the Board/ shareholders for their approval and implementing the Scheme approved by the shareholders. a NonExecutive Promoter Director. 2009 b) Remuneration cum Compensation Committee Composition As of March 31. S. policies and programmes of the Company. In conclusion. S. Right of an employee to exercise all the options vested in him at one time or at various points of time within the exercise period. In conducting such reviews. pension rights and any compensation payment. include the following::Quantum of options to be granted under the Scheme per employee and in aggregate. The Committee has also reviewed the internal controls put in place to ensure that the accounts of the Company are properly maintained and that the accounting transactions are in accordance with prevailing laws and regulations. Procedure for making a fair and reasonable adjustment to the Mr. • Bringing about objectivity in determining the remuneration package. October 30. Conditions under which option vested in employees may lapse in case of termination of employment for misconduct.. approves and evaluates the Executive Directors and senior Management compensation plans. • Deciding the terms and conditions of Employees Share Purchase Scheme (ESPS) and Employees Stock Option Scheme (ESOS) which. Anand Burman(PD/NED) Member 4 The Remuneration cum Compensation Committee of the Company. as statutory auditors of the Company. New Delhi April 29. • Considering.conformity with Indian GAAP and IFRS in all material aspects. the Committee found no material discrepancy or weakness in the Internal Control Systems of the Company. while striking a balance between the interests of the Company and the shareholders. a credible and transparent policy on remuneration of Executive Directors. Meetings The Remuneration cum Compensation Committee held four meetings during 2008-09:. Sd/P N Vijay Chairman. being independent Directors. P. P N Vijay (ID) Chairman 4 Mr. N. 2008 and January 29. The Committee also affirms that in compliance with the Whistle-Blower Policy no personnel had been denied access to the Audit Committee. Vesting Period. 2009. Narayan. 2009. to carry out audit of the accounts of the Company for the financial year 2009-10. Directors' Responsibility Statement. Specified time period within which the employee shall exercise the vested options in the event of termination or resignation of an employee. July 28. retain and motivate the Directors. The Committee has also reviewed Management Discussion and Analysis. inter-alia. the Remuneration cum Compensation Committee comprises Mr. Statement of Significant Related Party Transactions. • Suggesting to Board/shareholders changes in the ESPS/ESOS. Audit Committee Mr. compliance relating to financial statements and draft auditors' report. the Committee is sufficiently satisfied that it has complied with the responsibilities as outlined in the Audit Committee's responsibility statement. recommends to the Board the compensation terms of Executive Directors. Attendance record The details of attendance of the Committee Meetings are given in Table 5 below: Table 5: Attendance details of Remuneration cum Compensation Committee Name of Members (Category) Status No. inter-alia. of Meetings Held Attended 4 4 4 • Ensuring that the remuneration policy is good enough to attract. and Dr Anand Burman. Vijay (Chairman) and 52 . The responsibilities of the Committee include: • Framing and implementing. approving and recommending to the Board changes in designation and increase in salary of the Executive Directors. This Committee also has the responsibility for administering Employee Stock Option Scheme of the Company. including ESOP.

H H Maharaja Gaj Singh had resigned from the Board on October 30. Pradip Burman. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance number of options and to the exercise price in case of rights issues. Grant.... 2. The main responsibility of the Remuneration cum Compensation Committee is to incentivize and reward executive performance that will lead to long-term enhancement of shareholder performance. NonExecutive Promoter Director. The Company's remuneration strategy is market-driven and aims at attracting and retaining high calibre talent. 2007. D..f..... Sunil Duggal. commission is paid at a rate not exceeding one per cent of the net profits per annum of the Company. The strategy is in consonance with the existing industry practice and is directed towards rewarding performance.. on a periodical basis. Narang and Mr.. The Committee also reviewed and approved the stock options of all members of the Management team for the year 20082009. vest and exercise of option in case of employees who are on long leave. as Chairman.. based on review of achievements.... Forfeiture/cancellation of options granted. the outcome of performance assessment programmes. compensation policies for employees and the information to decide on grant of options to various employees. Sd/P N Vijay Chairman. the Committee reviewed the grant of sign-on and regular stock options to various other employees of the Company during the year.. Independent Directors Non-executive independent Directors are entitled to sitting fees for attending meetings of the Board of Directors and committees thereof within the prescribed limits. Executive Directors Remuneration of the Executive Directors consists of a fixed component and a variable performance incentive. Executive Promoter Director and Mr Amit Burman.. October 30. Mr. Remuneration cum Compensation Committee New Delhi April 29. • To allot shares upon exercise of vested options. Meetings The Nomination Committee held one meeting during 2008-09 on October 30. The Committee was also provided information on appraisal systems.. As per the shareholders' approval obtained at the Annual General Meeting of the Company held on July 13. Non-Executive Promoter Director.. the Non-Executive Chairman is also entitled to commission out of the profits of the Company. All other issues incidental to the implementation of ESOS. within the overall limits approved by shareholders. 1. Executive Directors.. Procedure for cashless exercise of options.. The Remuneration cum Compensation Committee makes annual appraisal of the performance of the Executive Directors based on a detailed performance evaluation... The Committee reviewed and approved the stock options payable to all Executive Directors.e. and recommends the compensation payable to them. Non-Executive Chairman Besides sitting fees... Attendance Record The details of attendance of the 53 .. Remuneration cum Compensation Committee Report for the year ended March 31. During the year. Remuneration policy The remuneration paid to the Directors of the Company is approved by the Board of Directors on the recommendations of the Remuneration cum Compensation Committee. calculated in accordance with the provisions of Sections 198.. bonus issues and other corporate actions... 2008. within the parameters approved by the shareholders. to the Board for their approval... as approved by the Board and within the overall limits prescribed by the Companies Act. 1956. 2008 and consequently ceased to be member of the Nomination Committee w. 349 and 350 of the Companies Act. 2008. 2009 To the Shareholders of Dabur India Limited: The Remuneration cum Compensation Committee comprises two Independent Directors and one Non Executive Promoter Director.. The Committee also reviewed and approved the revision in remuneration of Mr.. • To issue grant/award letters.... 3. In addition. 1956. 2009 c) Nomination Committee Composition Dabur's Nomination Committee consists of Dr Anand Burman.. P.

Mr P D Narang (ED) Member Mr Amit Burman (PD/NED) Member Mr. • Split-up/Sub-division and Consolidation of shares. Executive Director. Amit Burman. consolidation and exchange. and incidental to. Praveen Mudgal . authorize operation of such account(s) and issue instructions to the Bank from time to time in this regard. non-receipt of balance sheet. 54 . 2009. Probate. 2009. In order to provide efficient services to investors. the Board of Directors has delegated the power of approving transfer and transmission of shares and other matters like split up / sub-division and consolidation of shares.Committee Meeting are given in Table 6 below: Table 6: Attendance Details of Nomination Committee Name of Members (Category) Status No. • Issue of new and duplicate share certificates. • To open/close bank account(s) of the Company for depositing share/ debenture applications. on April 30. • Registration of Power of Attorneys. A K Jain. of Meetings Held Attended 1 1 1 1 1 1 1 0 Attendance Record The details of attendance of the Committee Meeting are given in Table 7 below: Table 7: Attendance Details of Shareholders/Investor Grievance and Share Transfer Committee Name of Members (Category) Mr P N Vijay (ID) Status Chairman No. July 28. and for speedy redressal of the complaints. Letters of Transmission or similar other documents.f . non-receipt of dividend and other allied complaints. non-receipt of declared dividends etc. issue of new certificates on re-materialization. 2009 To the Shareholders of Dabur India Limited: The Shareholders’/Investors Grievance and Share Transfer Committee comprises three members. P. subject to a maximum of 5. is the Compliance Officer. Mr. these functions and not herein above specifically provided for. 2009. Mr. October 30. Narang. P. Sarita Agrawal Manager (Secretarial). The Committee performs the following functions: • Transfer/Transmission of shares. Meetings The Committee met four times in the year under review. General Manager (Finance) and Company Secretary. like transfer of shares. non-receipt of balance sheet.Joint Company Secretary and Mrs. • To decide the remuneration of consultants engaged by the Committee. jointly to any two of Mr. The Committee specifically looks into redressing shareholders' and investors' complaints/ grievances pertaining to share transfers. There were no complaints which were pending as on March 31. non-receipt of declared dividends etc. General Manager (Finance) and Company Secretary. Dr Anand Burman(PD/NED)Chairman Mr Pradip Burman (PD/ED) Member Mr Amit Burman (PD/NED)Member H H Maharaja Gaj Singh (ID)*Member * Ceased to be member w. Jain. Independent Director as Chairman. 2008.e. d) Shareholders/Investor Grievance and Share Transfer Committee Composition As on March 31. The functions of the Nomination Committee include: • To identify and recommend suitable candidates to the Board of Directors for appointment as members of the Board. Mr. • Dematerialisation/ Rematerialization of Shares. Shareholders/Investor Grievance and Share Transfer Committee Report For the year ended March 31. October 30. of Meetings Held Attended 4 4 4 4 4 3 • To look into redressal of shareholders' and investors' complaints. • To engage the services of consultants and seek their help in the process of identifying candidates for appointments to the Board. A. sub-division. It performs the functions of Transfer/ Transmission/ Remat/ Demat/ Split-up/ Sub-division and Consolidation of shares. K.000 shares per case. Details of queries and grievances received and attended by the Company during the year 2008-09 are given in Table 8. dematerialization. The main responsibility of the Committee is to ensure cordial investor relations and supervise the mechanism for redressal of investor grievances pertaining to transfer of shares. non-receipt of annual reports. • Any allied matter(s) out of. D. N Vijay. 2008 and January 28. 2008 The primary role of this Committee is to make recommendations on appointments to the Board. 2008. the Committee consists of three members. The Committee ensures cordial investor relations and oversees the mechanism for redressal of investors' grievances. allotment and call monies. Non-Executive Promoter Director and Mr.

As at the close of the Financial Year there were no complaints pending for redressal. 3. 3.) Complaints received from: . The Committee reviewed the status of investors' grievances on quarterly basis. IR preserves the veracity.. The corner stone of Dabur’s IR policy is to disclose all relevant information to the investors which provides a fair and correct assessment of the company’s business situation at any given time. criticism and suggestions from investors.... 2009 Chairman. 4. leading to a fair assessment of the Company’s value relative to that of the overall market.. The Committees are broadly responsible for implementing the overall business strategy approved by the Board. The Charter of each Management Committee has been clearly defined...Stock Exchanges . 2008 Nil Nil Nil Nil Nil Nil Nil Nil Received during the year 6 360 1 119 15 6 Nil 507 Disposed during the year 6 360 1 119 15 6 Nil 507 Pending as on March 31. structured and consistent presentation of the information. 26 cases of sub-division and 18 cases of issue of duplicate share certificates. 4. IR at Dabur is not a one way traffic but the company welcomes feedback.... relevance and quality of the information distributed to the market through a periodic... 75 cases of re-materialisation. ... Therefore the investor meetings and interactions act as a channel of two way communication and the investors' feedback is given due consideration by the management of the company. new initiatives for enhancing business competitiveness and implementing the business plans as approved by the Board of Directors. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance Table 8: Nature of complaints received and attended to during 2008-2009 Nature of Complaint Pending as on April 1. 2... performance of other players.. feedback and opinions and informing the management regarding the same. The IR function plays a pivotal role by acting as the ‘bridge’ between the Company and its stakeholders. Disseminating authentic and correct information to the stakeholders and potential investors... The Committee approved 93 cases of transfer.... the role of Investor Relations is becoming increasingly critical in helping companies to manage the flow of information and to communicate more effectively with the investment community.. Some of the responsibilities held by the Investor Relations team at Dabur are as under: 1.. Sd/P N Vijay New Delhi April 29.. identifying areas of further value creation..... 2009 Nil Nil Nil Nil Nil Nil Nil Nil 1.Securities and Exchange Board of India .Registrar of Companies/ Department of Company Affairs Total issue of new and duplicate share certificates and allied matter(s). 2.. At Dabur... The IR function provides reliability and transparency to retail and institutional shareholders in order to enable them to take informed decisions. 5. Providing inputs on the FMCG market. latest developments in industry and economy and general market intelligence. Shareholders/ Investor Grievance and Share Transfer Committee Investor Relations – Boosting Investor Confidence As the requirements of disclosure... Transfer / Transmission / Duplicate Non-receipt of Dividend Dematerialisation /Rematerialisation of shares Others (Non receipt of bonus shares/ POA/ change of signatures/ address etc. Analysing and understanding the company's changing shareholder profile and underlying trends. transparency and corporate governance continue to grow and become more and more demanding. Managing Shareholder queries.. the IR team works very closely with top management to implement programs that are consistent with its corporate objectives.. economic environment. 55 Management Committees The Company has constituted separate Management Committees to look after the operations of each of its Divisions.

if any. paid up capital and free reserves) exceeds 20% of the consolidated turnover or net worth respectively. incorporated in India. of the listed holding company and its subsidiaries in the immediately preceding accounting year. Web casting .31 crores were sold to Asian Consumer Care Private Limited. the management had the opportunity to share their strategy with a number of institutional investors both Domestic and Foreign. the Directors or the Management. Group Analyst Meetings to share our vision and plans at a strategic level with the analysts and fund managers. 4. One-on-one meetings and quarterly conference calls . if any. which was reported to the Board of Directors. – Goods worth Rs. 7.92 crores were sold to Dabur International Limited.55 crores. stating that the said dealings and transactions. of the subsidiary companies. their subsidiaries or relatives. – Goods worth Rs. The Senior Management personnel make disclosures to the Board periodically regarding .88 crores were purchased from Dabur Nepal Pvt. ICICI Securities. whose turnover or net worth (i. 6. along with investments made by them. and on behalf of Naturelle LLc. on a quarterly basis. At Dabur. Disclosures Disclosures on materially significant related party transactions i. we have various avenues to ensure that investors get a good understanding of the company and its strategies.all material financial and commercial transaction with the Company. Participating in investor conferences organized by leading institutional brokerage houses. JP Morgan. 2. In order to achieve this Dabur holds: 1. Management Management Discussion and Analysis The Annual Report has a detailed Chapter on Management Discussion and Analysis.06 crores were sold to Naturelle LLc. financial and commercial transactions where Key Management Subsidiary Companies Under Clause 49 of the Listing Agreement. had no potential conflict with the interests of the Company at large.19. transactions of the Company of material nature. amounting to Rs. that may have potential conflict with the interests of the Company at large. Related Party Transactions Significant related party transactions are summarised herein below:1.7. – Goods worth Rs. – Goods worth Rs. These meets enable the investors to understand the strategy and operations at Dabur in a much better manner.39.Webcasts are done for Dabur's quarterly result presentations which are available on corporate web site for upto one month after the webcast. During 08-09 we attended. and .e. Personnel have personal interest forms part of the disclosure on related parties referred to in Note in Schedule P to Annual Accounts.3. – Goods worth Rs. – Goods worth Rs. Dabur does not have a material non-listed Indian subsidiary.54 crores were sold to Dabur Egypt Ltd. – Collateral and guarantees have been given on behalf of Dabur Egypt Limited amounting to Rs. where they have personal interest.4. to name a few. conferences hosted by CLSA. The Audit Committee reviews Financial Statements of the subsidiary companies. – Goods worth Rs. a "material non-listed Indian subsidiary` 56 . During these conferences.7.To show case the company's performance and also highlight the company's forwardlooking strategy.50 crores.172. with its promoters.06 crores were sold to Weikfield International (UAE) Ltd.their dealings in the Company`s share. etc. shall mean an unlisted subsidiary. Being a part of the company's disclosure team. Communicating important corporate developments such as mergers and acquisitions with appropriate details in order to give a complete perspective to investors.05 crores.83 crores were sold to Dabur Nepal Pvt Ltd. Fellow Subsidiaries (subsidiary of a subsidiary): – Goods worth Rs. structured and validated communications. Subsidiaries: – Equity contribution have been given by the Company to H & B Stores Ltd amounting to Rs.3. Building Investor Confidence through regular. which forms a part of this report. Ltd. 2.81 crores were sold to African Consumer Care Limited. UBS and HSBC.1. The material.19. The Board of Directors also reviews the Board meeting minutes and statements of all significant transactions and arrangements.e.5.3. 3.

. wrongful conduct. by stock exchanges or SEBI or any statutory authority on any matter related to capital market during the last three years. www.. actual or suspected fraud or violation of policies. – General expenses amounting to Rs. The detailed related party transactions can be referred to in Notes in Schedule P to Annual Accounts... in its Report..56 crore.. Dabur has adopted a Dividend Policy which has been displayed on the Company's website.. and also to a three-member direct touch team established for this purpose. As stated earlier in this report.... The Committee has...com.. – Collateral and guarantees amounting to Rs.7. and to improve the quality of life of the community around its manufacturing facilities as it constitutes one of the Company's most important group of stakeholders... 4. and in line with the best international governance practices. It reviews the status of complaints received under this policy on a quarterly basis.. kindly refer to Table 3 of this report. – There were no relatives of key Management personnel who were paid remuneration / pension of Rs.... The direct touch team comprises one senior woman member so that women employees of the Company feel free and secure while lodging their complaints under the policy. No penalties/ strictures were imposed on the Company .com Disclosure of accounting treatment in preparation of financial statements Dabur has followed the guidelines of accounting standards laid down by the Institute of Chartered Accountants of India (ICAI) in preparation of its financial statements.dabur. The Audit Committee periodically reviews the existence and functioning of the mechanism.. the Company has formulated a comprehensive Code of Conduct for Prevention of Insider Trading...14 crores have been given on behalf of Forum I Aviation Limited. amounting to Rs. The above mechanism has been appropriately communicated within the Company across all levels and has been displayed on the Company's intranet as well as on the Company's website www. Key Management Personnel & their Relatives: – For transactions with Key Management Personnel being Mr P D Narang.. • Build and strengthen a culture of transparency and trust.. wherever it operates.. The Company has set up a direct touch initiative.3. The General Manager (Finance) and Company Secretary has been appointed as Compliance Officer. affirmed that no personnel have been denied access to the Audit committee. The Whistle-Blower Protection Policy aims to: • Allow and encourage employees and business associates to bring to the Management notice concerns about unethical behavior. Policy for Environment & Pollution Control Dabur has always believed in its role as a responsible corporate citizen..4..... The Code lays down guidelines advising them on procedures to be followed and disclosures to be made while dealing with the shares of Dabur. It has a well focused and dedicated Policy for Environment & Pollution Control. Dividend Policy To bring transparency in the matter of declaration of dividend. Whistle-Blower Policy The Company promotes ethical behaviour in all its business activities. • Provide protection victimization. compliance of clause 49 (1A) is under process and shall be completed shortly. for its Management and staff. with a commitment to minimize any impact that its business operations may have on the environment.... Dabur has established a system through which employees and business associates may report unethical business practices at work place without fear of reprisal. The Company's plans are primarily based on consideration of 57 Details of non-compliance by the Company Dabur has complied with all the requirements of regulatory authorities. Mr Sunil Duggal and Mr Pradip Burman. have been paid to Forum I Aviation Limited. Joint Ventures – Equity contribution has been given by the Company to Forum I Aviation Ltd.27 crs. and cautioning them of the consequences of violations.dabur.. under which all employees / business associates have direct access to the Chairman of the Audit Committee. malpractice.. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance 3. against Code for prevention of insider-trading practices In compliance with the SEBI regulation on prevention of insider trading.. and to better protect the interests of investors.1 crore or more during the year. • Ensure timely and consistent organizational response.

Albert Wiseman Paterson. Machine and Material incidents at the Corporate and Manufacturing Units level. He was the CEO and MD of Aviva life Insurance Company India Ltd. A dedicated “Safety Management Team” is working towards the prevention of Man. Consequently. Currently. Mr. The Company regularly educates and motivates its employees on environmental issues through training programmes. he has no shareholding in the Company. Mr. The Company is dedicated to the promotion of sustainable growth of herbal-based plantations in different climatic zones of the country through its Agro-Biotechnology Division. Currently. Risk assessment. He was appointed CEO. Environmental Management Programmes have been undertaken by units on the concept of Reduce. and member of various key industry forums. Retd.(Boston). S Narayan: (IAS. The Company has received a notice in writing from a member proposing their candidature for the office of Director. M Phil. Technology and Facilities.Sc.Sc.A. and is also experienced in formulation of macroeconomic policy for the Government tariff and taxation polices.C. In early stages of his career he served in various leadership roles in the actuarial business. he has no shareholding in the Company. The Company is continuously monitoring its waste to ensure adherence to pollution control norms within the prescribed limit. He has been the driving force behind the Max India Group's sustained growth and success since the mid 1980s. being eligible. He is a leading expert in stock market. P N Vijay and Dr. He is actively involved in educating investors through various channels. Shareholders Reappointment/Appointment Directors of Occupational Health & Safety Policy The Company has in place Occupational Health & Safety Policy which focuses on People. Reuse and Recycle. and in line with its commitment towards the society. he was in public service in the State and Central Government in development administration. Chairman of Max New York Life Insurance Company Limited and Chairman & Managing Director of Max Healthcare. Analjit Singh.360 shares. Aviva Turkey. 1956. one-third of its Directors retire every year and. Currently. if eligible. Kolkata). To maintain the ground level water.) M. Dr. Dabur has taken the initiative to install Rainwater Harvesting. as well as initiatives for modernizing the capital markets. before joining Dabur in1995.D.resource conservation and pollution abatement. He is a regular columnist in leading newspaper and financial journals. Safety and Environment through training programmes and seminars. Mr. B. Their brief CVs are given below: Mr.Sc. Analjit Singh and Mr. Retired as Economic Advisor to the Prime Minister of India. He is the Founder & Chairman of Max India Limited. making them more efficient. He was Director-Aviva Europe before coming to India. Mr. He was Director Aviva International with responsibility for a portfolio of businesses. The Company recognizes its human force as the most important asset and is deeply committed to providing a safe and healthy working environment to its employees.(Hons) Economics. appointed as Additional Directors by the Board. Analjit Singh: B. For nearly four decades (1965 to 2004).Sales & Marketing in Wimco Ltd.I. He served as General Manager . He played a key role in redefining Sales and Marketing functions at Dabur. S Narayan would retire this year and. P N Vijay: M. supported by Management commitment as the prime driver. Sunil Duggal. which has shown a good result in maintaining the ground water level. emergency preparedness plan and health check-ups were a regular feature at unit level. Sunil Duggal: MBA (IIM. and towards education and motivation of the employees on various aspects of Health. His current holding in the Company is 1. offer themselves for re-election at every Annual General Meeting. Mr. statement for the year is enclosed at the end of the report. Albert Wiseman Paterson: B.464. is a member of the Prime Minister's Joint Indo-US CEOs Forum. in October 2002. IIT Chennai. Further Mr. being one of India`s leading business persons. then moved to Pepsi Foods Ltd in 1994 as General Manager Sales & Marketing. Ph.I UK and PG Certificate in Education.(Hons) Mathematics A. he has rich experience in implementation of economic policies and monitoring of the special economic agenda of the Cabinet on behalf of the Prime Minister`s Office. MBM.S (Business Administration) and MBA. As per the Articles of Association of Dabur. offer themselves for re-appointment in accordance with the provisions of the Companies Act. have been proposed to be appointed as Directors in the Annual General Meeting. he has no shareholding in the Company Mr. He is a Director on the Board of several reputed companies On CEO/ CFO Certification The CEO and CFO certification of the financial statements and the cash flow 58 .

Auditors Report and other important information is circulated to the members and others entitled thereto for each financial year. Subroto Park. including summary of significant events and Unaudited Financial Results for the quarter ended June 30. EDIFAR/ Corporate filing and dissemination system: The Company has been complying with SEBI regulations for filing of its financial results under the EDIFAR/ Corp filing system... 2005 July 8.. 2007 July 10. etc.in.nic.in.Extraordinary General Meeting ... 08 October 31.sebiedifar.. Report on Corporate Governance. half yearly and annual financial results..dabur. The Management Discussion and Analysis Report forms part of the Annual Report.. 2008 was sent to the households of all shareholders. .com General Body Meetings Table 10 gives the details of the last five General Body Meetings. Audited Accounts.co... efficient and relevant communication to all external constituencies. institutional investors... 1956. Table 9 below gives details of the publication of the financial results in the year under review. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance the academic front. ancial Year 2003-2004 2004-2005 2005-2006 2006-2007 2006-2007 2007-2008 Category * AGM AGM AGM EGM (Court Convened Meeting) Location of the meeting Air Force Auditorium.00 AM 59 AGM AGM *AGM .. 2006 July 13.Annual General Meeting..00 AM 11. 2008 Unaudited Financial Results for the quarter / Nine months ended December 31.. in terms of section 2(41) and section 6 read with schedule IA of the Companies Act. Exclusive email ID for investors: The Company has designated the email id investors@dabur..00 AM 11.. and therefore emphasizes on prompt. Directors' Report. 2009 News Releases/ Presentations: Official press releases..com exclusively for investor servicing.com.. The quarterly. Annual/ Half-Yearly Reports are also available on the website.. Webcasts are left on corporate website for upto 1 month. presentations made to the media. New Delhi-110 010. EGM .dabur. 2008 Audited Financial Results for the quarter/year ended March 31. Currently.. he is associated as Executive Board Member of various educational institutions. 08 January 30. He is also actively involved in social activities. 09 will be published on May 1. Consolidated Financial Statements. Table 10: Location and time of the last 5 General Body Meetings... official news releases and presentations made to institutional investors and to analysts are promptly and prominently displayed on the website.. for the half-year ended September 30.00 AM 11. 2004 July 15.. These are available on the SEBI web-site www.com contains a separate section 'Investors Relations' for use of investors. analysts.. /www... MD&A.00 AM 9. are displayed on the Company's website www.corpfiling.. Annual Report of subsidiary companies is also posted on the website.dabur. 2009 July 30.30 AM 11. Same as above Same as above Same as above Same as above Same as above Date July 6. 2008 Audited Financial Results for the half year ended on September 30. 2006 July 8. Website: The Company`s website www. . Means of Communication with Shareholders Financial Results: Dabur recognizes communication as a key element of the overall Corporate Governance framework. ...... continuous. he has no shareholding in the Company. inter-alia.Half-Yearly Report: Audited halfyearly financial statements. Table 9: Publications of the financial results during 2008-2009 Description Date Webcasting: Dabur's quarterly results presentations are webcast..Quarterly: The quarterly financial results are normally published in The Economic Times/ Times of India / Mumbai Mirror/Mint and Navbharat Times newspapers.. and the same is prominently displayed on the Company`s website www. None of the Directors of the Company are related inter-se. 2008 Time 11.Annual Report: Annual Report of the Company containing. Transcript of the webcast is also sent to BSE and NSE.

• Alteration of object clause of Memorandum of Association of the Company. Ltd. • Keeping of Register of members and other statutory records of the Company at a place other than the registered office.The following Special Resolutions were taken up in the last three AGMs. The result of the Postal Ballot was announced on September 22.9979% Votes against the Resolution 13174 0. after receiving the scrutinizer`s report. • Appointment of Mr.0002% Total Votes polled 697207369 100. 2001. • Payment of remuneration to Mr. CEO/CFO Certification VI. postal ballot was conducted seeking approval of the shareholders for resolution regarding alteration in the main objects in object clause III (A) of the Memorandum of Association of the Company by inserting a new clause to set up. Mohit Burman as Director of the Company. announced that the special resolution as proposed in the Postal Ballot notice was duly passed with the requisite majority. Compliance Mandatory requirements Compliance Report of Dabur with the applicable mandatory requirements of Clause 49 is as under. was appointed as scrutinizer for conducting the Postal Ballot process. 2006 • Appointment of Mr Mohit Burman as Whole-Time Director in Dabur International Limited. a subsidiary of the Company. in pursuance to section 192A of the Companies Act. 2008 • Appointment of Mr. Report on Corporate Governance VII. preference issues etc (E) Remuneration of Directors (F) Management (G) Shareholders V. July 13. • Approval for payment of commission to Non-Executive Directors. and to engage in all activities relating to Information :Technology products and ITenabled services etc. Companies (Passing of the Resolutions by Postal Ballot) Rules. July 10. of votes % Number of Postal Ballot forms received 5714 Votes in favour of the Resolution 697192620 99. • Appointment of Mr. and directed that the Resolution be recorded in the minute book recording the proceedings of General Meetings of the members. Board of Directors (A) Composition of Board (B) Non-executive Directors Compensation &Disclosures (C) Other provisions as to Board and Committees (D) Code of Conduct II. 2008. Compliance Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes N/A Yes Yes Yes Yes Yes Yes Adoption of non-mandatory requirements a) Maintenance of the Chairman's office The Company maintains the office of the Non-Executive Chairman and provides for reimbursement of expenses incurred in performance of his duties. 2007 • Re-appointment of Mr Pradip Burman as Whole-Time Director of the Company. • Re-appointment of Mr P D Narang as Whole-Time Director of the Company. 1956 read with 60 . However. rights. operate and maintain Software /Information Technology parks in India or abroad. He reported the vote count on September 19. Subsidiary Companies IV. a subsidiary of the Company. 2008. and were passed with requisite majority.00% Table 12: Compliance Report Particulars Clause Compliance of listing status agreement 49 I Yes 49(IA)under process 49 (IB) 49 (IC) 49 (ID) 49 (II) 49 (IIA) 49 (IIB) 49 (IIC) 49 (IID) 49 (IIE) 49 (III) 49 (IV) 49 (IV A) 49 (IV B) 49 (IV C) 49 (IV D) 49 (IV E) 49 (IV F) 49 (IV G) 49 (V) 49 (VI) 49 (VII) I. July 8. Chartered Accountant. presently none of the Independent Directors holds office as such for a period of more than nine years.Gaurav Burman as Whole-Time Director in Dabur International Ltd.0019% Invalid votes 1575 0. Sidharth Burman. 2008 at the registered office of the Company and was published in Financial Express on September 25. The Chairman. Amit Burman as Whole-Time Director in Dabur Nepal Pvt. Audit Committee (A) Qualified & Independent Audit Committee (B) Meeting of Audit Committee (C) Powers of Audit Committee (D) Role of Audit Committee (E) Review of Information by Audit Committee III. b) Tenure of Independent Directors No specific tenure has been specified for the Independent Directors. The result of the postal ballot is given below in Table 11: Table 11: Result of the Postal Ballot Particulars No. as Whole-Time Director in Dabur International Ltd. Postal Ballot During the year under review. Disclosures (A) Basis of related party transactions (B) Disclosure of Accounting Treatment (C) Board Disclosures (D) Proceeds from public. Mr V K Jhalani. a subsidiary of the Company.

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Dabur India Limited | Annual Report 2008-09

Report on Corporate Governance

c) Remuneration Committee Dabur has Remuneration cum Compensation Committee that comprises three members, two members being Independent Directors and one being NonExecutive Director. The Chairman of the Committee is an Independent Director. d) Half-Yearly Declaration Dabur has a practice of preparing audited half-yearly report of financial statements, including a section on Management Discussion and Analysis, since last five years, which is sent to all shareholders. The halfyearly report for the year 2008-09 was sent to all shareholders on December 4, 2008. e) Audit Qualifications The Auditors have raised no qualification on the Financial Statements of the Company. f) Mechanism for evaluation of NonExecutive Directors The performance evaluation of NonExecutive Directors is done through a peer-to-peer performance evaluation of the Board of Directors. The Directors are marked on a scale of 1 to 5, with respect to three broad

parameters namely - guiding strategy, monitoring Management performance and development / compensation and statutory compliance & Corporate Governance. g) Whistle-Blower Policy Dabur has a Whistle-Blower policy in place. The details with regard to the functioning of this policy have been mentioned earlier in this report.

Book Closure The dates of Book Closure are from the 1st day of July 2009 to the 15th day of July 2009, inclusive of both days. Dividend Payment Interim dividend of Re.0.75 per equity share was paid on February 10, '09 for the financial year 2008-09. Dates of Transfer of Unclaimed Dividend Pursuant to section 205A of the Companies Act, 1956, unclaimed dividend for Financial Year(s) upto 200001 (Final) and 2001-2002 (Interim) have been transferred to the General Revenue Account of the Central Government/ Investor Education and Protection Fund (IEPF) established by the Central Government. The dividends for following years, which remain unclaimed for seven years, will be transferred to IEPF in accordance with the schedule given below. Shareholders who have not enchased their dividend warrants relating to the dividends specified in Table below are requested to immediately send their request for issue of duplicate warrants. Once unclaimed dividend is transferred to IEPF, no claim shall lie in respect thereof either with the Company or IEPF.

Additional Shareholder Information
Annual General Meeting Date : July 15, 2009 Time : 11:00 am Venue : Air Force Auditorium, Subroto Park, New Delhi - 110010 Financial Calendar Financial year: April 1 to March 31 For the year ended March 31, 2009, results were announced on:
• • • • July 28, 2008 October 30, 2008 January 28, 2009 April 29, 2009 : : : : First Quarter Half Yearly Third Quarter Fourth Quarter and Annual

For the year ending March 31, 2010, results will be announced by: • • • • 27th July 2009 (tentative) : 26th October 2009 (tentative): 27th January 2010 (tentative): 28th April 2010 (tentative) : First Quarter Half Yearly Third Quarter Fourth Quarter and Annual

61

Table 13: Dividends declared in the past Financial Year 2002-2003 2002-2003 2003-2004 2003-2004 2004-2005 2004-2005 2005-2006 2005-2006 2006-2007 2006-2007 2007-2008 2007-2008 2008-2009 Type of Dividend Interim Final Interim Final Interim Final Interim Final Interim Interim Interim Final Interim Date of Declaration 30/10/2002 02/08/2003 04/11/2003 06/07/2004 27/10/2004 15/07/2005 24/10/2005 08/07/2006 31/10/2006 13/03/2007 24/10/2007 10/07/2008 28/01/2009 Due Date for transfer to IEPF 06/12/2009 08/09/2010 11/12/2010 12/08/2011 03/12/2011 20/08/2012 30/11/2012 08/08/2013 04/12/2013 16/04/2014 30/11/2014 16/08/2015 05/03/2016

Listing At present, the equity shares of the Company are listed on Mumbai Stock Exchange (BSE), and the National Stock Exchange (NSE). The annual listing fees for the financial year 2009-2010 to NSE and BSE has been paid. Table 14: Dabur's Stock Exchange codes ISIN No: Mumbai Stock Code: National Stock Code: Bloomberg Code: Reuters Code: INE016A01026 500096 DABUR DABUR IB DABU.BO

Equity Evolution during the year As on March 31, 2008 the paid up Equity Share Capital of the Company was Rs.864022973/- consisting of 864022973 equity shares of Re.1/- each. The table below gives details of equity evolution of the Company during the year under review:

Table 15: Shares allotted during 2008-09 Date Particulars Issued No. of equity shares of Re.1 each during the year 939458 113818 Cumulative

May 21, 2008 August 07, 2008

Allotment pursuant to exercise of Stock Options Allotment pursuant to exercise of Stock Options

864962431 865076249

62

....................................

Dabur India Limited | Annual Report 2008-09

Report on Corporate Governance

Stock Market Data
Table 16 and Chart A & B give details of stock market data. Table 16: High, low and volume of Dabur's shares for 2008-09 at BSE and NSE. Bombay Stock Exchange Ltd. Month April, 2008 May, 2008 June, 2008 July, 2008 August, 2008 September, 2008 October, 2008 November, 2008 December, 2008 January, 2009 February, 2009 March, 2009 High (Rs.) 115.30 110.80 101.50 99.00 100.00 99.00 91.80 91.00 86.00 94.00 95.40 99.45 Low (Rs.) 102.10 91.55 77.70 74.00 86.00 85.00 60.00 73.30 75.00 83.05 85.10 85.50 Volume (No. of Shares) 4252207 12168487 2515120 2237158 3202258 6752030 2547387 7183676 5578403 1321004 1458928 1859253 National Stock Exchange of India Ltd. High (Rs.) 115.50 110.95 106.30 99.40 96.50 98.50 91.85 91.00 85.50 94.25 95.45 100.00 Low Volume (Rs.) (No. of Shares) 102.25 91.65 77.50 74.25 85.25 84.05 60.15 73.60 75.00 83.25 85.55 86.50 10608283 16642167 11369978 10289205 10884244 14720220 11393861 14047243 13300847 9517807 7855649 7621989

Chart A: Dabur's Share Performance versus BSE Sensex

63

Chart B: Dabur's Share Performance versus Nifty

Note: The charts have share prices and indices indexed to 100 as on the first working day of 2008-09.

Distribution of Shareholding
Tables 17 and 18 list the distribution of the shareholding of the equity shares of the Company by size and by ownership class, as on March 31, 2009. Table 19 lists the top ten shareholders of the Company Table 17: Shareholding pattern by size Number of equity shares held Physical Form No. of share holders up to 5000 5001 - 10000 10001 and above Total 7219 110 12 7341 No. of shares 7024983 734006 222000 7980989 Dematerialisation Form No. of share holders 96455 508 492 97455 No. of shares 33341366 3503397 820250497 857095260 Total % of share number holders of share holders 103674 618 504 104796 98.93 0.59 0.48 100 Total number of shares % of share holding

40366349 4237403 820472497 865076249

4.67 0.49 94.84 100

64

c) DP will process the DRF and will generate a Dematerialization Request Number (DRN).52% 0... of Shares held 115175020 108867000 104218990 94606000 81658993 53020485 26506493 26191287 20768257 14267052 % of shareholding 13. Puran Associates Private Limited Ratna Commercial Enterprises Pvt Ltd.Market Plus No..06% 0.28% 0.63% 1.56% 1. To facilitate trading in demat form. of share holders Directors. Milky Investment and Trading Company Burmans Finvest Pvt Ltd. b) Shareholders should submit the Dematerialization Request Form (DRF) along with share certificates in original..59% 3.60% 10. 2009 Name Chowdry Associates VIC Enterprises Private Limited Gyan Enterprises Pvt.03 2.09% 0..58% 5.. 2008 % of share holders 0... Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance Table 18: Shareholding Pattern by ownership Particulars No.00% No. Dabur has entered into agreement with both these depositories.. 1999.81% 12.24% 95. Ltd. there are two depositories i. 2009 % of share holders 0.03% 0...06 3.13 3..65 Dematerialization of Shares and Liquidity Trading in equity shares of the Company in dematerialized form became mandatory from May 31.... • The equity shares of the Company are frequently traded at Bombay Stock Exchange Ltd.. the process of getting the shares dematerialized is given hereunder: a) Demat Account should be opened with . 65 Dematerialization of Shares: For convenience of shareholders.58 12.73% 100.31 12. a Depository Participant (DP).......40 1. promoters and family members FIIs Mutual Funds Financial Institutions/ Banks/ Insurance companies NRIs Corporates Individuals Total 28 118 64 27 2764 1303 100492 104796 As on March 31.70% 6.05 10. ICICI Prudential Life Insurance Company Ltd.03% 0..08% shares of the Company were held in dematerialized form.. d) DP will submit the DRF and original share certificates to the Registrar and Transfer Agents (RTA). LIC of India Money Plus LIC of India .. Shareholders can open their accounts with any of the Depository Participant registered with these depositories..91% 7. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). 2009.. in India.48% 95.44 6... to their DP..10% 100% Table 19: Top ten shareholders as on March 31.89% 100% No.64% 1.94 9.. 99..49% 0..79% 100% No.e. of shares held 611834473 74278471 31121682 88968460 4260203 5011529 49601431 865076249 % of share holding 70. of shares held 611834473 109161703 16498077 63369714 4450327 6055613 52653066 864022973 % of share holding 70.33% 0.. • As on March 31.03% 2.02% 2.11% 0.03% 0. and National Stock Exchange of India Ltd.. Ltd. of share holders 31 100 30 25 2765 1593 103336 107880 As on March 31.. which is Karvy Computershare Pvt.73% 8.

provided the documents meet the Registrar and Transfer Agent Securities and Exchange Board of India (SEBI). Such transfers take place on fortnightly basis.karvy. change of address. Outstanding GDRs/ADRs/ Warrants/Options The Company has 3995407 outstanding Options as on March 31. through its circular No. the Company has voluntarily complied with each one of them. New Delhi-110002 Ph: 011-23253488. 040-23420814 Email id: mailmanager@karvy. Karvy Computershare Private Limited Unit: Dabur India Limited 105-108. New Delhi-110001. and reports on the reconciliation of total issued and listed Capital with that of total share capital admitted / held in dematerialized form with NSDL and CDSL and those held in physical form. Though these standards are recommendatory in nature. where the Company`s shares are listed and is also placed before the Shareholders and Investors Grievances Committee of the Board. A summary of all the transfers/ transmissions etc.com Email id: delhi@karvy. Asaf Ali Road.e) RTA will process the DRF and confirm or reject the request to DP/ Depositories. carries out the secretarial audit as mandated by SEBI. This audit is carried out on quarterly basis and the report thereof is submitted to the Stock Exchanges. Hyderabad. Connaught Place.D and CC/ FITTC/CIR-5/2002 dated December 27. Barakhamba Road. Vithalrao Nagar Madhapur. Karvy Computershare Private Limited Unit: Dabur India Limited Plot No. Details of the registrar and transfer agent are given below- Compliance with Secretarial Standards The Institute of Company Secretaries of India.: 011. 66 . f) Upon confirmation of request. 2009. : 011-41036370 Website: www. Secretarial Audit Aggarwal & Ahluwalia. dividends. has made it mandatory for all work related to share registry. 1st Floor. The Shareholders/ Investor Grievance and Share Transfer Committee has delegated the authority for approving transfer and transmission of shares and other related matters to the officers of the Company. Company's Registered Office Address: 8/3. Phone No.com Details of Public Funding Obtained in the last three years Dabur has not obtained any public funding in the last three years.com stipulated requirement of statutory provisions in all respects. 2002. The Company obtains from a Company Secretary in practice half yearly certificate of compliance with the share transfer formalities as required under clause 47© of the listing agreement.43509200 Fax No. During the year 2007-08.: 040. Share Transfer System All share transfer and other communications regarding share certificates. the shareholder will get credit of the equivalent number of shares in his Demat Account maintained with the DP. so approved by officers of the Company is placed at every Committee meeting. a statutory body. 17-24. Shareholders/Investor Grievance and Share Transfer Committee is authorized to approve transfer of shares in the physical segment. 2. to be handled either wholly 'in-house' by companies or wholly by a SEBI-registered external registrar and transfer agent. the Company appointed Karvy Computershare Private Limited as its new registrar and transfer agent in place of M/s MCS Limited. Arunachal Building.23420815-820 Fax No. has issued nine Secretarial Standards on various aspects of corporate law and practices. both in physical and electronic form. 1. much before this was mandated by SEBI. Dabur had appointed MCS Limited as its registrar and transfer agent in 1994 for both segments. with vesting period from 1 to 5 years from the date of grant. an independent firm of practicing Chartered Accountants. 19.500081 Phone No. All share transfers are completed within statutory time limit from the date of receipt. and files a copy of the same with the Stock Exchanges. etc should be addressed to Registrar and Transfer Agents.

3008700 (30 Lines) Fax . Baddi 173 205.).110 002. 9800008456. Baddi 173 205.400046 to 51.220123.. Phone: 43509200. 2477 2740 (033)32919827/28.Dhar (M.4. Fax: 0260 . Distt. Distt.O.263146. Tel: 0144 ... Fax: 01923 221970 10. Phase II. Distt Solan. HPSIDC Industrial Area. New Delhi 110001. Baddi 173 205..3. 2477 2738. NH -7. Tel: 01795-245273 Fax: 01795-244090 Food Supplement Unit 221.P. Complex. HP. Fax No.P.. Baddi 173 205...26.I & II Survey No.. HP. Tel: 01795-245273 Fax: 01795-244090 Chyawanprash Unit 220-221. Mutual Funds.. Baddi 173 205.. Tel: 01795-245273 Fax: 01795-244090 Honitus/Nature Care Unit 109.2477 2324 ... HP. New Delhi .0260-2681071/72/73/74 . Distt Solan. Mahanvita. Dabur India Limited. Distt Solan. Dadra & Nagar Haveli (UT of India) Tel .2779914 / 4376924 Hajmola Unit 109.P.O..262317. 262297 Fax: 07622 .) 201010. 09933399800 Newai Jalpaiguri Address for Correspondence For share transfer / dematerialisation of shares. Jammu 181133 Tel: 01923 . Fax : 0144 . Dabur India Limited. Newai . . Baddi 173 205. Distt Solan. HP. Sector-3. NH-12Road No. Tel: 01795-245273 Fax: 01795-244090 Red Toothpaste Unit Village Billanwali Lavana. HP. Uttarakhand .301 030. SIDCO Indl. Kheda Industrial Area. Pin 735135.. HPSIDC Industrial Area. Pithampur . HP.. Silvassa .250064 Unit I & IILane No.304020. HP.454774 Distt. Punjabi Bhawan.0120. Netaji Subhash Bose Road. 223893.2322 2051 67 For investors assistance . Tel: 01438 -223342. IID Centre. Kolkata .. Arunachal Building.. 2477 2620.483442Tel: 07622 . Fax: 011-23222051 Mr.42786000. Sector-2. to the shares For queries of Analysts. Baddi 173 205. Baddi. Village Saily. Bari Brahmna.. 992.2681075 G 50-59. Tel: 011 .262297 SP-C 162..(0)9331048165 Fax: 033. New Delhi .) .. Rajasthan.. Sahibabad. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance PLANT LOCATIONS Sahibabad Baddi Unit I & II Plot No. (M. Integrated Industrial Estate Pantnagar. Tel : 07292 . 19.Ghaziabad-(U.. Industrial Area.2477 2621 Unit . 223783. Tel: 033. 12. Tel: 01795-245273 Fax: 01795-244090 Oral Care Unit 601.. Tel: 01795-245273 Fax: 01795-244090 Shampoo Unit Village Billanwali Lavana. P. 222341/ 54. Malku Majra. Punjabi Bhawan 10 Rouse Avenue. Barakhamba Road.. 991. FIIs. Tel: 01795-245273 Fax: 01795-244090 Glucose Unit Plot No.. Fax: 011 .. Fax: 05944 . Alwar . 01438. Site IV.304020. 222859.S. .223783 Kartowa..4 Mile Stone.110002 Tel: 011-42786000. Distt Solan.2881319/2881217/2881542.. 105-108. 10. Tel: 01795-245273 Fax: 01795-244090 Amla/Honey Unit Village Billanwali Lavana.. 22. Udham Singh Nagar. Village Paudia KATNI. Fax: 41036370 Mrs Gagan Ahluwalia. payment of dividend and any other query relating. HPSIDC Industrial Area. Ph 0120. P.700103. HPSIDC Industrial Area. M . HP. Matsya Industrial Area.. P. Distt..Connaught Place. Institutions. Tonk (Rajasthan) .1. Distt Solan.. Distt Solan. Rouse Avenue. Banks and others Karvy Computershare Private Limited. Tel: 09800008457. Tel: 9760013990.2881302/2881341 86-A. Tel: 01795-246363 Pantnagar Jammu Katni Alwar Pithampur Narendrapur Silvassa Plot No....Nalagarh Road. Jalpaiguri (West Bengal). HP. Baddi 173 205. West Bengal. Rajganj. Distt Solan.. Distt Solan.396230. 225/4/1. A K Jain General Manager (Finance) and Company Secretary. Fax : 400112 9.Narendrapur.

2009 Sd/Sunil Duggal CEO. These statements together present a true and fair view of the Company's affairs and are in compliance with existing accounting standards. Chief Executive Officer and Rajan Varma. to the best of our knowledge and belief certify that: 1. Chief Financial Officer. as well as the Cash Flow Statement. wherever applicable. To the best of our knowledge and information: a. b. to the Company's auditors and through them to the Audit Committee of the Company's Board of Directors: a. and we have evaluated the effectiveness of the Company's internal controls and procedures pertaining to financial reporting. which we are aware and have taken steps to rectify these deficiencies. b. Any fraud. of Dabur India Limited. Dabur India Limited Sd/Rajan Varma CFO. These statements do not contain any materially untrue statement or omit to state a material fact or contains statement that might be misleading. which are fraudulent. that based on our knowledge and the information provided to us. which we have become aware of and that involves Management or other employees who have a significant role in the Company's internal control systems over financial reporting. All significant deficiencies in the design or operation of internal controls.Certification by Chief Executive Officer and Chief Financial Officer of the Company We. We further declare that all board members and senior Management have affirmed compliance with the code of conduct for the current year. based on our most recent evaluation. We also certify. 2. illegal or violate the company's code of conduct. The company's other certifying officers and we are responsible for establishing and maintaining internal controls for financial reporting and procedures for the Company. Significant changes in internal control over financial reporting during the year. 5. there are no transactions entered into by the company. Significant changes in accounting policies during the year. 4. The Company's other certifying officers and we have disclosed. We have reviewed the Balance Sheet and Profit and Loss Account of the Company for the year ended 31st March. d. Dabur India Limited 68 . 09 and its entire schedule and notes on accounts. applicable laws and regulations. 3. New Delhi April 29. c. Sunil Duggal.

..e... Anand Burman Status CHAIRMAN/ PD/NED Directorship Aviva Life Insurance Co. Dabur India Limited | Annual Report 2008-09 Report on Corporate Governance Annexure 1 . India Ltd Audit Committee Dabur Ayurvedic Specialities Limited Shree Investments Limited Mahindra Forgings Limited Audit Committee H & B Stores Limited Dabur Pharmaceuticals Ltd.. Fresenius Kabi Oncology Ltd. October 30. Ltd. Hindustan Motors Limited Committee Membership Committee Chairmanship Shareholders & Investors Grievance Committee Audit Committee Amit Burman PD/NED H & B stores Limited Audit Committee Q H Talbros Limited Radico Khaitan Limited Dabur Liberty General Insurance Co. Talbros Automative Components Ltd Aviva Life Insurance Co..... Ltd......... Ltd Max Healthcare Institute Limited Grow Talent co. Grasim Industries Limited Optimus Global Services Ltd. Dabur Pharmaceuticals Limited H & B Stores Ltd...Details of other Directorships Held Name of the Director Dr.... 2008 69 ... Maruti Suzuki India Limited Thomson Press Ltd. Vodafone Essar Limited Malsi Hotels Limited Malsi Holdings Limited Malsi Estates Limited Max Neeman Medical International Ltd Max Bupa Health Insurance Limited Audit committee Audit Committee Audit Committee P D Narang ED Sunil Duggal P N Vijay Dr.. Ltd Aviva life Insurance Company India Ltd.... Limited H & B Stores ltd Dabur Liberty General Insurance Co.. ltd. S Narayan ED ID ID R C Bhargava ID Audit Committee Audit Committee Audit Committee Audit Committee Shareholders Grievance Committee Shareholders Grievance Committee Nil Audit Committee Audit committee Nil Albert Wiseman Paterson* Analjit Singh* ID ID * Appointed as additional director w... Laxmi Vilas Bank Idea Cellular Ltd ILFS Limited Polaris Software Lab Ltd.. India Ltd Ayurvet Limited Sanat Products Limited Pradip Burman PD/ED Audit Committee Mohit Burman PD/NED Aviva Life Insurance Co... H & B Stores Ltd Reed Relay & Electronics Limited Godrej Properties Limited Apollo Tyres Ltd. Universal Sompo General Insurance Co.f.. India Ltd. Nil Max India Limited IDBI Limited Hero Honda Motors Ltd Tata Tea Limited Max New York Life Insurance Co. UltraTech Cement Co..

00 0. inclusive of corporate tax on dividend distribution.1502250/-.18 0. together with the Audited Accounts for the year ended March 31. Acquisition of FEM Care Pharma Ltd.40 64. The final dividend.1/.68 365.51 25.73 428.00 47. is at 47. and strengthening its position in the industry.84 323.per share of Rupee one each) for the financial year 2008-09.1.75 per share of Rupee one each) as against 150% 70 (Rs.23 425. 1956.72 372.07 70.15 545.02 323. dividend for the year 2000-01 (final) and 2001-02 (interim) which remained unpaid or unclaimed for a period of 7 years. 1956. amounting to Rs.0. With a view to increasing its market share in the fast-growing consumer & personal care business. 2009.54 315.31 365.88 86.86 40.00 425.51 0.01 64. which form part of this Report. Your Directors have pleasure in presenting the 34th Annual Report on the business and operations of the Company.50 per share of Rupee one each) declared last year. The aggregate dividend for the year will amount to 175% (Rs.1.41%.75 7.05 545.00 0. Table1: Financial results (Rs.80 64. the Company proposes to take over FEM Care Pharma Limited (FEM). Pursuant to the provisions of Section 205A (5) of the Companies Act.92 229.07 Dividend The Company has paid an interim dividend of 75% (Re.80 22. by acquiring . The Members.07 90. a FMCG Company listed on Bombay Stock Exchange.08 1. in crore) 2008-09 Turnover (including other income) Profit before Tax Add: Provisions of earlier years written back Less: Provision for Taxation – Current Provision for Taxation – Deferred Provision for Taxation – Fringe Benefit Provision for taxation for earlier year Profit after Tax Add: Balance in Profit & Loss Account brought forward from the previous year Profit available for appropriation Appropriation to: General Reserve Capital Reserve Interim Dividend – Paid Final Dividend – Proposed Corporate tax on Dividend Balance carried over to Balance Sheet Total 2007-08 2439.57 0.48 (2. Operations and Business Performance Kindly refer to Management Discussion & Analysis and Corporate Governance. The dividend payout ratio for the current year. has been transferred by the Company to the Investors’ Education and Protection Fund.94 696. if approved by the members. We are pleased to recommend a final dividend of 100% (Re.75 per share) on February 10. Financial Results Financial results are presented in Table 1. will be paid to members within the period stipulated by the Companies Act.55) 6.23 696.D irectors’ Report To. 2009.07 2111.

adequacy of the Internal Control measures and reporting of matters to the Audit Committee in terms of Clause 49 of the Listing Agreement with the Stock Exchanges. and of the profit of the Company for that period.e. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. Dabur India Limited | Annual Report 2008-09 Directors’ Report controlling stake of 72.. In this regard. being eligible. Certificate of the CEO/CFO. resulting in creation of value and wealth for all stakeholders. In the year under review. Dr S Narayan and Mr P N Vijay will retire by rotation at the ensuing Annual General Meeting. FEM also offers fabric care products under the brand name “Bambi” and herbal anti-wrinkle cream under the brand “Botanica”.. 1956... their shareholding etc... is also enclosed as a part of the Annual Report.... Mr Analjit Singh and Mr Albert Wiseman Paterson were appointed as Additional Non-Executive Independent Directors on October 30. the Company is in the process of acquiring from the public shareholders of FEM up to 20% of the fully diluted voting capital of FEM at a price of Rs.. They shall hold office upto the date of the ensuing Annual General Meeting of the Company and. the nature of their expertise in specific functional areas. and will be value accretive for its stakeholders. In terms of Article 103 and 104 of the Articles of Association of the Company. the Directors confirm: i) That in the preparation of the annual accounts. Further. offer themselves for appointment. as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges. is attached as ‘Annexure 1’ and forms part of this annual report. Directors During the period. the Company has entered into a Share Purchase Agreement with the existing promoters of FEM.15% from its existing promoters at a cost of Rs... compliance with Company‘s Code of Conduct.72 crore.per share aggregating to Rs. Corporate Governance Dabur has always been devoted to adopting and adhering to the best Corporate Governance practices recognized globally. the following shares were allotted and admitted for 71 .. Mr Sunil Duggal. iv) That they had prepared the annual accounts on a going concern basis. Directors’ Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act. 2008. 2008. Your Directors recommend their appointment/ re-appointment at the ensuing Annual General Meeting.. which are marketed under its flagship brand “FEM”. HH Maharaja Gaj Singh had resigned from the Directorship of the Company w. The compliance report on Corporate Governance and a certificate from Auditors of the Company regarding compliance of the conditions of Corporate Governance....47 crore.. as required under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations..f...... Overall. inter alia. ii) iii) That they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. so as to give true and fair view of the state of affairs of the Company at the end of the financial year. 1997. October 30.. 1956. For this purpose. the applicable accounting standards have been followed and no material departures have been made from the same. offer themselves for reappointment in terms of the provisions of Article 106 of the Articles of Association of the Company. names of companies in which they have held directorships.. Change in Capital Structure and Listing of Shares The Company’s shares are listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) and are actively traded.. hair removing cream and liquid hand soaps.. The Company understands and respects its fiduciary role and responsibility towards stakeholders and the society at large... are furnished in the explanatory statement to the notice of the ensuing Annual General Meeting. 203.. and being eligible.. the acquisition is expected to provide substantial revenue and cost synergies to Dabur... The Board places on record its gratitude for the valuable services rendered and guidance provided by HH Maharaja Gaj Singh during his tenure with the Company. That they had selected such accounting policies and applied them consistently. FEM’s portfolio of products include bleaches...800/. confirming the correctness of the financial statements. and strives hard to serve their interests.. and made judgements and estimates that are reasonable and prudent. committee memberships/ chairmanships. The brief resumes of the Directors who are to be appointed/re-appointed. 56. requisite Public Announcement has already been released in newspapers and the Company had received the clearance for Letter of Offer filed with SEBI and the Public offer will open shortly. with respect to Directors’ Responsibility Statement.

391. 1956. 2009 from them to the effect that their reappointment. • 939458 equity shares allotted on May 21. and that they are not disqualified for such reappointment within the meaning of Section 226 of the Companies Act. which drills down from the CEO to the executive level person who is responsible for compliance. pursuant to Accounting Standard AS-21 issued by the Institute of Chartered Accountants of India. Nature of Business There has been no change in the nature of business of the Company and any of its subsidiary companies during the year.10 crore as compared to Rs. 1956. The observations of the Auditors. copies of Balance Sheet. Auditors and their Report M/s G. The annual accounts of the subsidiary companies are also available for inspection by the shareholders at the Registered Office of the Company and also that of its respective subsidiaries. offer themselves for reappointment as statutory auditors for the financial year 2009-10. supplemented by internal audit checks from Price Waterhouse Coopers Private Limited. In terms of approval granted by the Central Government under Section 212(8) of the Companies Act. 1956. Report of the Board of Directors and the Report of the Auditors of the subsidiary companies have not been attached with the Balance Sheet of the Company. Independence of the audit and compliance is ensured by direct reporting of Internal Audit Division and Internal Auditors to the Audit Committee of the Board. Basu & Company. net profit after tax and after minority interest for the year at Rs. Consolidated Financial Statements presented by the Company include the financial statements of its subsidiaries. Internal Control System The Company has a well placed. would be within the limit prescribed under section 224(1B) of the Companies Act. recorded and reported correctly. and has deposited a sum of Rs. were re-appointed as Cost Auditors to conduct cost audit of the accounts maintained by the Company. in respect of the Formulations and Cosmetics & Toiletries products for the financial year 2009-10. The Company will make available these documents/details upon request by any shareholder of the Company or subsidiary interested in obtaining the same. Consolidated Financial Statements In compliance with the Accounting Standard 21 on Consolidated Financial Statements. proper and adequate internal control system. together with the Notes to Accounts referred to in the Auditors‘ Report. Cost Auditors M/s Ramanath Iyer & Company. During the year. 1956.trading in NSE and BSE:.towards unclaimed deposits and interest thereon. if made. this Annual Report also includes Consolidated Financial Statements for the financial year 2008-09. the Internal Auditors. However.Equity shares allotted against the options exercised by employees pursuant to Employees Stock Option Scheme of the Company. the Company has developed a very comprehensive legal compliance manual called ‘e-nforce‘. Statutory Auditors of the Company. a statement of the holding company’s interest in the subsidiary companies is attached as ‘Annexure 2’ and forms part of this report.08 crore in the previous year.2852.334.57. The Internal Auditors independently evaluate the adequacy of internal controls and concurrently audit the majority of the transactions in value terms. which ensures that all assets are safeguarded and protected and that the transactions are authorised. Subsidiaries As required under the provisions of Section 212 of the Companies Act. To further strengthen the internal control process.2395. 2008. will retire at the conclusion of the ensuing Annual General Meeting and. are self-explanatory and do not call for any further explanation from the Directors.27 crore as compared to Rs. The following information in aggregate for each subsidiary is also being disclosed (a) capital (b) reserves (c) total assets (d) total liabilities (e) details of investment .com. The Company’s internal control system comprises audit and compliance by in-house Internal Audit Division. and as on March 31.21 crore is higher by Rs.792744/towards unclaimed deposits and interest thereon in the Investors’ Education & Protection Fund. Fixed Deposits During the year under review. pursuant to the provisions of Section 205C of the Companies Act.dabur.11 crore in the previous year. 72 Consolidated Turnover grew by 19. the Company has repaid a sum of Rs. 1956. Similarly. • 113818 equity shares allotted on August 7. The Company has received a letter dated April 7. Cost Accountants.194552/. Profit and Loss Account. the Company has not accepted any fixed deposits from the public. The Financial Statements of each subsidiary shall also be available on Company’s website www. being eligible. 2008. This process is fully automated and generate alerts for proper and timely compliance.09% to Rs. 2009 the Company had no unclaimed deposits or interest thereon due to any depositor. Chartered Accountants.

Technology Absorption: Efforts made in technology absorption as per Form B is attached herewith as ‘Annexure 7.Attached herewith ‘Annexure 6’ B. This was despite a 8-9% volume increase in manufacturing and an average increase of 11. Employees Stock Option Plan During the year. being implemented for reduction of consumption of energy:• Additional investment of Rs.. Foreign Exchange Earnings and Outgo A. The particulars of options issued under the said Plan as required by SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines..301. d) Total energy consumption and energy consumption per unit of production as per Form A . The Company also has a private label business in USA and UK.“Nirvana” energy efficient Air . • Retrofitting of pet coke boiler. the Company made the allotment of 939458 equity shares on May 21. 563472 options in 4 tranches were granted to eligible employees of the Company in terms of Employees Stock Option Plan (Dabur ESOP 2000).. • Combined ETP Facility.. Some of the key initiatives were as follows• Conversion of Oil Fired 6 TPH Boiler to Solid Bio Fuel Fired Boiler to conserve energy and save environment.87 lac has been made during the year for implementing further energy conservation measures at manufacturing plants.. 73 as ....Compressor installed to reduced Power consumption. Accordingly. • Synchronization of production load resulting in lower FO Consumption per unit production.7% in cost of key input fuels like HSD and Furnace oil. 1956. against the options exercised by the employees.. Saving of around 20.8% on absolute basis (from Rs. 2008 and 113818 equity shares on August 7. Conservation of Energy. Technology Absorption. b) Additional investments and proposals. Foreign Exchange earnings and outgo: i) Activities and initiatives relating to exports.. These measures have also lead to reduction in effluent. 1053276 options were exercised by the employees after vesting. The Company’s key markets for international business are the Middle East.’ C. Particulars of Employees Particulars of employees as required under Section 217(2A) of the Companies Act. Consequently. Conservation of energy: a) Energy conservation measures taken:Various energy conservation projects were initiated at large scale and successfully implemented. • Shampoo Cold process for Energy Conservation.. along with Guar gum exports. 1975 as amended are given in ‘Annexure 5` and forms part of this report..... utilization of Organic Load (Herbs) through ETP to generate Biogas which is burned in Boiler to conserve energy and save environment. The said information is given in ‘Annexure 3’ and forms part of this report.. which takes place from its Indian plants. • Replacement of Efficient Air Compressor . West Africa and South East Asian geographies. • Process Change in Chyawanjunior conversion from Steam to Hot water for energy conservation..36 cr to Rs.. improved hygienic condition and consistency in quality and improved productivity...... 1999 are appended as ‘Annexure 4’ and forms part of this report. Dabur India Limited | Annual Report 2008-09 Directors’ Report (except in case of investment in subsidiaries) (f) turnover (g) profit before taxation (h) provision for taxation (i) profit after taxation (j) proposed dividend. read with Companies (Particulars of Employees) Rules.... c) Impact of measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods:• The energy conservation measures taken during the year have resulted into yearly saving of approximately Rs. if any. with sourcing from plants located across these regions. reduced maintenance time and cost. North Africa... • Use of Centrifuge before Tray drier to reduce drying time in Bhasma by 70%. During the year...31cr) between 2007/08 and 2008/09..000 units of Power on monthly basis... the energy bill got reduced by 13. • Alternative fuel (Bio Diesel) used in Boilers.560 Lacs and thereby lowered the cost of production.. 2008...

Syria and South Africa. has performed well with a growth of 56.7% during the fiscal 2008-09.Sharply defined Brand portfolio strategy in sync with the Company’s brand architecture. The growth has been led by increased distribution penetration and focussed brand approach.48. Bangladesh. .5% value share within two years of launch. Egypt. .3% Volume MS (Modern Trade) in Saudi Arabia. The Company’s International Business Division. The Amla franchise has been extended to the Hair Cream Category with the launch of Dabur Amla Hair Cream in February 09. Turkey. recorded an impressive sales growth of 39.Leveraging the ‘naturals wave’ to market Dabur products.62 crore in the year 2008-09. .376 crore in 2007-08 to Rs. which has been a big success and has become a dominant brand in the portfolio just two years after launch. resulting from opening up of new markets with new avenues for growth in Lebanon. The brand has gained 11. Robust sales growth in international markets was possible due to: . the Company would continue to invest in brand building. across the MENA region in mid 2006.. Nigeria. Libya. aided by the growth of Dabur Herbal Toothpaste and Dabur Herbal Gel in the Oral Care category. Yemen.6% year on year value growth fuelled by innovations and new product launches in the Hair Care and Oral Care business.5% of overall consolidated Dabur’s Business. contributing to 18. manufacturing and infrastructure in order to capture the opportunities that exist for the Company. Following on the successful launch of Vatika Olive & Cactus Oils.Export business: The Company undertakes exports of Guar Gum and also undertakes private label exports to UK and US from India.27 crore in the year 08-09.1%. has registered a strong 45. Nigeria.4% year on year value growth. Morocco..17. ii) Development of new markets for Products & Services: A significant contributor to the growth of the division during FY09 was geographical expansion. This range of Vatika Hair Oils has registered a 101% growth in value across the Middle East and North African region. despite aggressive competition from established brands. The Company has built a strong and robust brand architecture with two mega brands for international business across all geographies – Dabur and Vatika — and most of its offerings are under either of these two brands. iii) Export Plans The focus. Dabur Egypt Limited is one of the top performers of the international business with 99. Private label business in USA has grown from Rs.9% from Rs.2% in Guar Gum export business from Rs. Algeria. Export of certain other products is also being planned for the US markets. the Company launched another two variants — Vatika Almond & Vatika Coconut. has grown by 36% over the last year. built from a negligible base over the last three years in the 74 Arab belt.27. Vatika Naturals Styling Hair Cream range has established itself as a key brand in the category.Geographical expansion.525 crore in 2008-09.272 crore and is one of the largest geographies in the international division recorded a steady growth of 11. African Consumer Care Ltd. Mauritania and China. Asian Consumer Care Pvt. Growth has been registered by increasing the customer base by focussing on the existing China and USA markets. Algeria. The Company has recorded a growth of 26. The key contributing markets to the international business growth have been GCC. The new manufacturing facility which has been set up in the Emirates of Ras -al-Khaima was commissioned during the year and has become one of major manufacturing locations for Dabur’s International Business. Ltd. . Morocco. The Vatika franchise has grown by 73% over last year and is now a INR 136 crore franchise.38 crore in the year 07-08 to Rs. with a 9. Implementing the open innovation strategy the Company had outsourced Italian technology and launched a range of intensive hair treatment masks Vatika Naturals Hamam Zaith. GCC. Dabur Nepal Pvt Limited.33 crore in the year 07-08 to Rs.Higher levels of localization. the largest market in the International Business Division. which generates sales of Rs. The Company had launched its new range of Dabur Vatika Naturals styling hair cream. is to continue expanding the Company’s presence across these geographies and to exploit the opportunities that exist in the neighbouring regions. extending the Vatika brand equity. going forward. which has been identified as one of the key markets for future growth for Dabur in Africa.1% Volume Market share (overall) and a 13. Direct business with customers has been increased and dependency on brokers reduced. Therefore.

Total Foreign Exchange Earned during 2008-09: Rs.. Safety and Environment through its Policy.... 1997 persons constituting Group (within the meaning as defined in the Monopolies and Restrictive Trade Practices Act.. A total of 105 audits have been carried out during 08-09 including three market audits. Dabur has taken the initiative to install the Rainwater harvesting which has shown a good result in maintaining the ground water level. has renewed its commitment towards Health.. 75 • Environmental Target has been taken to reduce the consumption of water and energy. Nepal and Ras-al-Khaima are fully equipped with state of the art laboratories to ensure the best in class quality control.. A Dedicated “Safety Management Team” is working towards the prevention of Man. During the year Dabur bagged various Awards and Recognitions in different categories and for different Brands.. Quality Review: We at Dabur are committed to the health and well being of every household by ensuring safe and quality products. • Emergency Preparedness plan is in place and the plan is audited through mock drills... All of our factories in India. are given in the ‘Annexure 8’ attached herewith and forms part of this report. Health Safety and Environmental Review Dabur India Ltd...10987. Machine and Material incidents at the Corporate & Unit level and to educate and motivate the employees on various aspects on Health. Operations Review For detailed operational review kindly refer to Management Discussion and Analysis and the Report on Corporate Governance.... Our vision is the key driver to our journey from good to great quality. .. • Ranked 28th in the list of India’s Top 50 Most Valuable (company) Brands by Brand Finance. Group for interse transfer of shares Pursuant to an intimation received from the Promoters. Key Initiatives taken during the year.. • Health Check up for all employees carried out at unit level... supported by validated equipment. The wing of corporate quality to ensure compliance and identify scope of improvements audits the full chain starting from supplier to distribution including factories and market. Dabur India Limited | Annual Report 2008-09 Directors’ Report Total Foreign Exchange used during 2008-09: Rs.2572. Awards & Recognitions: Dabur has received many Awards and Accolades in recognition of its achievements at various levels. These include: For the Company • Ranked amongst India’s most innovative companies by Business Today-Monitor Group Survey.. supported by Management Commitment as the prime driver. Study The Quality Assurance programme is based on stated Quality and Food safety policy which are founded on an integrated documentation system of Specifications. • Installation of Fire Hydrant System in units as applicable... Reuse and Recycle. • Risk Assessment carried out at unit level for the operation..39 lac..56 lac. • Carbon Foot Print undertaken at Unit level..4 sigma during 08-09 resulting into an improvement of 27%. • Different Guideline and Standard Rolled out for implementation at unit level and Focus on the training – on job and off job to minimize the TRFR (Total Recordable Frequency Rate). which focuses on People. • Environmental Monitoring carried out at unit level to check the impact on the environment. • Environmental Management Program has been taken by units on the concept of Reduce... processes and trained personnel. The metrics of finished product quality has moved from 4. under Clause 3 (1) (e) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. 1969) for the purpose of availing exemption from applicability of the provisions of Regulation 10 to 12 of aforesaid SEBI Regulations.... Food facilities at Nepal and Jalpaiguri are HACCP certified so as to ensure complete food safety. Safety and Environment through training program and seminars.. To maintain the ground level water and commitment towards the society.3 sigma in 07-08 to 4. Standard Operating Procedures and Batch Production Records.. Jammu and Alwar factories. which forms part of this Annual Report. Technology and Facilities... The Company is continuously monitoring its waste to ensure adherence to pollution control norms within the prescribed limit.. All the facilities in India are GMP certified apart from ISO 9000 and ISO 2200 certification of Silvasa.. • Revised Environment Policy has been launched with the commitment to preserve the environment. Quality Improvement of finished product is a key initiative as part of our continuous effort to improve the delivered quality.

co-operation and encouragement they extended to the Company. Acknowledgements Your Directors place on record their gratitude to the Central Government. and also ranked among India’s most valuable CEOs by Business World. Chartered Accountants (S. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of Investors. cordial and harmonious industrial relations at all levels. For G. ANAND BURMAN) New Delhi CHAIRMAN 29th April. Sunil Duggal was named the best corporate leader of 2008 at the B&E leadership and Excellence Awards. BASU & CO. In our opinion. For and on behalf of the Board (DR. 2009. We state that no investor grievance is pending for a period exceeding one month against the Company. for the year ended March 31. Industrial Relations The Company maintained healthy. The compliance of conditions of Corporate Governance is the responsibility of the Management. 2009 Auditors’ Report on Corporate Governance To The Members of Dabur India Limited We have examined the compliance of conditions of Corporate Governance by Dabur India Limited. and implementation thereof. Business Associates and Employees in ensuring an excellent all around operational performance. The enthusiasm and unstinting efforts of employees have enabled the Company to remain at the leadership position in the industry. • Listed among the super 100 of India Inc. one of the strongest brands in Dabur’s Portfolio. • Dabur Brands-Hajmola. prepared by Business India. Dabur Amla and Vatika have debuted in the Economic Times Brand Equity’s Most trusted Brands 2008 list. nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company. has been listed among the Top 18 Iconic Brands in India. It is neither an audit nor an expression of opinion on the financial statements of the Company. adopted by the Company for ensuring the compliance of the conditions of Corporate Governance.• Ranked the Business Leader in FMCG-Personal care Category at the NDTV Profit Business Leadership Award 2008. and to the best of our information and according to the explanations given to us. State Governments and Company’s Bankers for the assistance.Lahiri) Partner New Delhi 29th April. Our examination is limited to procedures. Its Chief Executive Officer • Mr. as per the records maintained by the Shareholders/ Investors Grievance Committee. as stipulated in Clause 49 of the Listing Agreement of the said Company with the stock exchanges. Its Brands • Hajmola. It has taken various steps to improve productivity across organization. • Dabur India’s fruit Juice brand ‘Real’ awarded the Reader’s Digest Gold Trusted Brand Award 2008 in the Food and Beverages Category. Dealers. Annexure ‘1’ We further state that such compliance is neither an assurance as to the future viability of the Company. 2009 76 . we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

1956 relating to Subsidiary Companies *Dabur Nepal Pvt... (i) For the financial Year of the subsidiaries (ii) For the previous financial year of the subsidiaries since they become the holding company’s subsidiaries... Ltd..03.89..87.000 Equity Equity Shares of Pens Shares of Re.2009 31. Dabur India Limited | Annual Report 2008-09 * Subsidiary under section 4(1)(c) Exchange Rate as on 31. Dabur International Ltd.2009 31.57.579 AED 2. Ltd.03.2009 31. 1 Sterling 1 each each fully paid up fully paid up 100% 31.2009 5 Net aggregate amount of subsidiaries Profit/(Loss) not dealt within the holding company’s accounts : — — — (Rs. *Weikfield *African *Asian *Naturelle International Consumer Consumer LLC (UAE) Ltd.. Care Ltd. — — — — 1 Name of the Subsidiary 2 Holding Company’s Interest — — 425.2009 100% — — — — — — 3 Extent of Holding — — — — 4 Subsidiary financial year ended on 31..000) Rs.03.03.2009 31.514) Rs 32..05..13.04.. *Dabur (UK) Ltd. Ltd. H&B Stores Ltd.2009 .63...000 1.600. 13.2009 31.....03.260 — — — (Rs.42....A Annexure ‘2’ Statement pursuant to Section 212 of the Companies Act....03.646 AED 2.94..03..2009 31. *Dabur Egypt Ltd.1 AED = Rs....39.03.. 29..03. Care (Pakistan) Pvt.03.983 — — — — — — — — — — (i) For the financial Year of the subsidiaries (ii) For the previous financial year of the subsidiaries since they become the holding company’s subsidiaries.. 6 Net aggregate amount of subsidiaries Profit/(Loss) dealt within the holding company’s accounts : — — — — — — — — — — — — — — — — — — — — . 7....76 Directors’ Report 77 ..03. 17. *Asian Consumer Care Pvt.2009 31.2009 31.000.32.58.

Turnover 7.20 USD 13. Details Of Investments 6. Provision for Taxation 9.12 197.0.68 PR 51.485.88 1.00 0.88 NR 18155 0.76 149.36 AED 36.82 BDT 449.90 0.00 7.50 NR 28.07 ND 17.A.64 PR -304.321.85 495.96 PR -253. Dabur Egypt Ltd.794.85 6.58 10.20 -2.89 AED 56. African` Consumer Care Ltd.48 USD -0.62 213.98 AED 98. Dabur International Ltd.38 14.00 0.35 AED 218.76 1 BDT= Rs 0.00 2.38 2.80 PR -112.54 3.60 394.864.40 220. 50.09 ND 8220.90 408.625 1 AED=Rs.00 0.60 USD 5.01 USD 0.17 AED 836.00 27.01 177. Profit Before Taxation 8.00 H&B Stores Ltd.49 266.00 0.46 BDT -697.35 AED -1.00 0.31 -161.18 0.00 0.00 0.60 8.00 1.00 6.25 1.E.95 1.18 -71.62 213.12 1.795.00 4.00 0.15 0.90 AED 56.95 BDT -248.96 BDT 2104.33 -177.68 7.00 57.51 NR 11136.47 USD 4.96 USD 0.88 AED 524. Capital 2 Reserves 3.34 BDT 532.00 1.00 0. Proposed Dividend Exchange Rate as on 31. Weikfield Asian International Consumer (U. Ltd.353.346.12 0.00 1.50 PR 89.74 1 ND=Rs.30 AED 16.003.00 AED 29.30 AED 742.222.346.42 PR -274.38 USD 4.13 778.59 USD 3. 499.42 11.67 597.20 214.19 ND 715.) Ltd.91 243.26 253.85 170.00 0.Ltd.88 NR 18155 11.00 22.52 0.00 5.01 332.79 USD 17.00 0.17 AED -59.08 AED 208.59 AED 7.26 USD 27.205.960. in lacs) Dabur Nepal Pvt.17 AED 836.06 -194.08 ND 4956.57 AED 1620.00 -1. Total Assets 4. Asian Consumer Care (Pakistan) Private Ltd Naturelle LLC Subsidiaries at a glance Particulars 1.300.00 -817.61 USD 124.79 USD 5.00 0.52 0.692. Dabur (UK) Ltd. Care Pvt.00 5.00 -1.00 2.401.556.60 -175.23 0.60 394.09 -71.63 868.08 ND 4956.557.58 5.88 AED 0.26 USD 27.76 AED 424.65 -516.47 AED 218.14 2.42 11.401.788.88 1.15 0.03.34 BDT 8.72 1 NR=Rs.26 1.0.62 0.35 AED -1.34 BDT 532.34 I PR = Rs 0.105.78 Annexure ‘3’ (Amount Rs.80 -30.00 150.47 USD 4.76 NR 23.250.81 0. Profit After Taxation 10. Total Liabilities 5.14 0.62 103.2009 1 US $ = Rs.77 ND 440.94 3.00 0.64 .08 NR 798.587.06 32.00 103.08 AED 208.00 0.03 ND 520.00 USD 2.64 0.685.96 ND 502.56 6.52 NR 43528.012.74 NR 4. 13.40 PR 2480.61 BDT -240.92 -18.80 PR -112.846.96 USD 0.89 671.13 778.505.27 -18.59 AED 7.213.685.81 11.12 AED 398.52 6.83 17.864.505.00 0.00 7.33 -183.82 USD 21.12 1.22 0.692.

. the Company’s stock option scheme. 9. Senior managerial personnel: Mr P D Narang Mr Sunil Duggal Mr Jude Magima Mr A Sudhakar Mr Devender Garg Mr Rajan Varma Mr K K Rajesh Mr Vinay Kushwaha Mr V S Sitaram Dr. 3. Employees who received the options during the year equal to or exceeding 1% of the issued capital of the Company at the time of grant: 11. Ranjit Chaterjee Group Director – Corp. The Company had been using intrinsic value method of accounting ESOP expenses as prescribed by SEBI (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines 1999.31 0.30 ii..29 0..) . as adjusted Impact on profit (i. Diluted earning per share (EPS) pursuant to issuance of options under ESOP 12.Expected Dividend yield .. Employees who received the options amounting to 5% or more of options granted during that year Mr P D Narang Group Director – Corp. 4........22 10.48 Add: Stock Option compensation 671... 5. compensation expenses is recorded on the basis of excess of the market price of share at the date of grant of option over exercise price of the option. profit would have been higher by) Earning per share (Rs..94... 2..Expected life ... Affairs Mr Sunil Duggal Chief Executive Officer Mr Vinay Kushwaha Executive Director -Operations Mr K K Rajesh Executive VP-Marketing Dr Ranjit Chaterjee Executive Director–R&D iii. 7. as reported in audited accounts 37355.Price of underlying shares in the market at the time of option grant 79 . Number of Options granted Pricing formula Options vested Options exercised Total number of shares arising as a result of exercise of option Options lapsed/Cancelled Variation in terms of options Money realized by exercise of options Total number of options in force 563472 Each option carries the right to the holder to apply for one equity share of the Company at par. 112. 2009.e.93 expenses charged in above reported profit Deduct: Stock option compensation expenses determined under fair value method (black scholes model) Net profit after tax. to account for stock options issued under Dabur ESOS 2000. As allowed by the above referred SEBI Guidelines the company has decided to continue to apply the intrinsic value method of accounting and accordingly the disclosure required as per para 12 (l) of the Guidelines are given herein below:(Rs....98 14.02 . 1053276 1053276 1053276 588449 None Rs..1053276/3995407 5626031 5599381 6101140 2879770 None Rs.97 37366.Risk free interest rate 6.As reported . 1999 and forming part of the Directors’ Report for the year ended 31st March. Weighted average exercise price (per option) Weighted average fair value of per option: (per intrinsic value method) Rs. 6.. Dabur India Limited | Annual Report 2008-09 Directors’ Report Annexure ‘4’ Disclosure regarding Employees Stock Option Plan pursuant to the SEBI (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines..01 660.. in lacs) Net profit after tax.As adjusted . Under this method. 8...09 (per black scholes model) Rs. Executive Director – HR Executive Director – CHD Chief Financial Officer Executive VP-Marketing Executive Director -Operations Chief Operating Off-Consumer Care Executive Director–R&D 81382 72659 21920 19750 26314 14324 33317 57500 5426 34157 81382 72659 57500 33317 34157 None: Rs.32 4.32% Rs.. Affairs Chief Executive Officer Executive Director – Supply Mgt.....60 1 to 5 years 14.Expected volatility . 115..31 4..6101140/3995407 Cumulative 12474558 10. The fair value of each option is estimated using the Black Scholes model after applying the following weighted average assumptions:.Impact on EPS Basic 4. For the Year 1..26 13.21 2. 4.96 Diluted 4. Employee-wise details of options granted during the year to: i.

Devasthale S V Dhir Vivek Duggal Sunil Garg Anil Garg Devendra Garg Rajiv(*) Gounden K C Guha Sujit Gunawant Deepika Addl.648 1.S.A.A. Marketing Manager.M.G.134 4.K.M.(Hons).B. Friesland Foods B.417.G.H. The Printers House Pvt.Supply Chain Head .Com.A. Unilever Asia Works Manager. Sales Officer .M.601.C.Uttranchal Head of Sales .M.M. M. MIT (USA) M.Supply Chain. Vam Organics Chemicals Ltd.778.A.. Balsara Home Products Ltd. Pharmax Corp Ltd. All India Sales Operations Manager.P. Dukes Products (India) Ltd.245 4.D. Deputy Manager. Ph..945 6.C..263 4.238.969 1.M.I.C.042 4.010 1/12/2009 37 Qualifications Experience (In Yrs) Remuneration (Rs. K.M.M.125.B.. B. B.M..M..Operations & Projects.Food Services Head . General Manager-Marketing (CCD) Addl. B.I.R&D.Pharma M.Sc.(Eco) Dip in Mech Engg B.D B.B. P. B. B.S.A. Tech.Sc.R&D (Personal Care) Senior General Manager . Director . I.359 3.Sc.Home Care. Dabur Finance Ltd. B.785 8/14/2006 9/1/1998 4/3/2006 10/24/1994 7/10/1995 12/4/2006 1/1/1997 4/25/2005 4/1/2002 11/2/2002 11/3/2008 3/1/1997 12/30/1993 5/1/1992 7/1/2006 11/15/1994 5/20/1995 4/1/2003 12/3/1993 7/31/1993 10/1/2006 9/1/2005 1/1/2007 38 45 46 43 42 44 41 47 55 66 59 39 58 55 48 39 52 56 44 60 60 43 49 17 723.G.D M.Com(Hons).766 3. Trikaya Grey Advertising AGM .Sc.D. B. Dip in T&D.625.P.792 701.923.Sc.845.B.110 7/1/2007 1/16/1995 8/17/1999 4/22/1997 11/3/2008 4/22/2004 7/1/2004 5/1/2008 6/1/2007 2/25/2002 12/1/2007 1/4/2007 47 36 46 55 54 45 41 44 43 45 60 41 16 21 25 20 14 22 17 21 32 42 34 16 29 32 21 16 28 32 21 36 31 21 23 1.998.B.503 2. Ph.571 1. B.A.Sc.813 2. B.278 2. Dabur Pharma Limited Assistant Vice President .Engg.002.R.A. Tech.Corporate Quality Assurance Vice President -S&M (CHD) Director Executive Director .. B. Ltd.D.A.738.C. General Manager-Operations (Foods) Executive Vice President-Marketing (CCD) .527 4.P.A. M...80 Annexure ‘5’ Designation/ Nature of Duties B. Dip in Labour Laws MD(Ayurveda).G. P. Dabur U.D..Tech.S.P.583 2. Procter & Gamble Co.M. Stanford Engineering Ltd.357 3. Pepsi Foods Ltd.C.Sc. Chief Financial Officer .New Projects 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Aggarwal Parag(*) Ahluwalia Gagan Angelo Geoge Bali Vikram(*) Banerjee Rana Banerjee T K Barua Jyotiroop(*) Bhaumik Asim Bhujbal Dilip Burman Pradip Chatterjee Ranjit(*) Chutani Krishan Kumar Dani R.Phil.M. B.705. B. Tilda Riceland Pvt.151.Ph. Dabur Pharmaceuticals Ltd.S.C. B.003 6. B.(H).Sc. Tech...M.Human Resources Senior General Manager-Marketing Executive Director-Operations General Manager-Manufacturing Executive Director-Supply Management Sr.A.533 7.D.Regulatory Affairs 25 26 27 28 Gupta Arun Gupta Upendra Kumar(*) Jain Ashok Kumar Jain Suresh(*) General Manager .Dabur Nepal Private Limited Regional Marketing Director.A.Com. B.P.E..364. (Mech. General Manager-Corp.230. Britannia New Zealand Foods Pvt Ltd Vice President . Marico Industries Limited Senior General Manager .786 22. Argusoft India Ltd. Brooke Bond Lipton India Ltd.042.A.M.. Ph.Finance.920.(Socio).B.G. Whirlpool of India Limited Marketing Mgr.D.450.B.P. 1956 read with Companies (Particulars of Employees) Rules. Kesri Vanaspati Products Ltd.).M.643. Duncan Industries Ltd.Engg.Finance. B.633.E. M. EID Parry (India) Ltd.Ayurveda Research Vice President .Regulatory Affairs and Business Development.Sc.333 7.Herbal Drug Research. General Manager.M.&P.209..G. M.B. Apollo Tyres Limited Head . GM-Sales & Marketing .400. B. Director.865.346 1.A.(*) Mittal Vikas Head .975. International Business Division.A. Production Administrator.Com.M.644 3.Corporate HR.193 2.Supply Chain.. Britannia Industries Ltd.Projects Head .569.W.393.662. Pepsi Foods Ltd Dy GM (Engg). 23 14 22 34 26 23 16 23 20 24 39 18 5.E.Corporate Affairs Dy General Manager-Financial Accounting GM-Finance and Company Secretary Sr GM-HR & IR 29 30 31 32 33 34 35 36 Katiyar Chandra Kant(*) Krishnan V Kumar Girish Kushwaha Vinay(*) Linhares Jude Magima Jude Malhotra S.Sc.) Date of Appointment (MM/DD/YY) Age (in yrs) Particulars of Last employment General Manager .973 3. Dabur Finance Ltd Sr Manager-Corp Personnel. CavinKare Pvt. Area Manager. 1975 and forming part of the Directors’ Report for the year ended 31st March. B.E.155 3. Affairs Executive Vice President-Sales (CCD) Head of Sales . S.Sc. Sr.A..E. Ranbaxy Research Lab.M.Global Feminine Care. M.. Factory Manager. Head . Balsara Home Products Limited Head .253. B.A. Head R&D .A.Sahibabad Head . Account Manager.D. Marico Industries Limited General Manager -Materials. 2009 Name 1 Acharya Suresh(*) Head .C. Vice President(Works).Home Care R & D General Manager-Marketing (CCD) Chief Executive Officer General Manager-IT Executive Director-(CHD) Vice President .105..G.West (CCD) Addl.(H). Dawar T.D. Statement of particulars of employees pursuant to the provisions of Section 217(2A) of the Companies Act.599.E.Sc. Dir.-Engg M.A.063 6.D..M.740 4.030 4. General Manager-Internal Audit Unit Head .R& D Senior General Manager-Marketing (CCD) Addl.696.B.793 4.Tech. Manager-Merchant Banking.256. M. Director. Ltd.540.172 1.D.112 4. Chief Operating Officer. Weikfield International (UAE) Ltd. B.Sc. B.W. General Mgr . Ltd.Marketing (CCD) Unit Head .652 2.744.Com.C.. M. Sales Operation Manager.

486.915. Carrier Aircon Ltd.212 5.D.P.. Chief Operating Officer . P..Marketing (CHD) B.. P. Notes: 1 2 3 4 5 Gross remuneration shown above is subject to tax and comprises salary including arrears. medical reimbursements.438 2.A. leave travel benefits.Packaging Development B. Unilever UK Director ..A..Beauty Services.Com. P.305 1.097 7. General Manager .A.. rent.D... C.. Dabur (Dr SK Burman) Pvt Ltd.Human Resources M. (*)Asterisk against a name indicates that the employee was in service for part of the year.. Vice President . The nature of employment is on contractual basis except in the case of Directors whose terms have been approved by shareholders.D. Tech.850....) Date of Appointment (MM/DD/YY) Age (in yrs) Particulars of Last employment 37 Mohan Charanjit(*) 38 Mukherjee Somit 39 Narang P.Taxation B.L. Ansal Housing and Construction Ltd.. Redrock Ltd.C. Executive Director-Operations Additional General Manager . UniPepsi Bottlers Limited Sr Packaging Development Mgr. P.865.Legal.666 7.131. .C.Name Designation/ Nature of Duties 35 13 33 20 21 36 23 20 22 28 23 33 31 14 36 2. B. Qualifications Experience (In Yrs) Remuneration (Rs.259 2.262 7/26/1999 6/9/2005 7/1/1983 55 37 55 General Manager-Technical.794.891.Finance B. Management Accountant. 4..Com (H).D.640 3.I..S.Corporate Affairs 40 41 42 43 44 45 46 47 48 Rajesh K K Sengupta Saibal(*) Shah Dinesh Chandra(*) Sharma Adarsh Sharma Maneesh Sinha Subodh(*) Sitaram V S Sreeram R Sudhakar A 49 Sunder K 50 Swarup Manish 51 Varma Rajan B..D.G.I.959. Hindustan Lever Ltd..A.E. Executive Director .199 1/3/1990 5/16/1994 11/1/2000 57 37 59 5. Chief Financial Officer B.Supply Chain & Procurement.516.B..276. B. L.Tech.Consumer Care B.. General Mills.. C. L.Com (Hons).A. General Manager. Senior General Manager .. Dabur India Limited | Annual Report 2008-09 Directors’ Report 81 ..G.Sc.Com..M Additional General Manager.Operations.M.(Social Work). M.. Head .220.M.653.R.I. F... allowances.D.W.096 7/25/2007 8/25/2008 10/1/2006 9/16/1991 9/19/2002 7/22/2008 1/18/2006 6/1/2007 9/17/2001 45 46 60 46 40 45 51 47 58 GM. Balsara Hygiene Products Limited Assistant Sales Manager...Manufacturing B.324 2.L. M.731 1..B.Sc...M. superannuation fund & gratuity under LIC scheme in terms of actual expenditure incurred by the Company and commission.Tech. GM-Projects.A. Hindustan Lever Limited Manager.G..662. Vice President & CFO.A. All the employees have adequate experience to discharge the reponsibilities assigned to them. M.D.M.provident fund..Com.Legal & Company Secretary M.Projects B. Noble Group Head . Super Cassettes Industries Ltd. Executive Vice President .Purchase Group Director . F.C. General Manager .. leave encashment.Sc.T..468.M. None of the employees mentioned above is a relative of any Director.P.027 22...B.S.E. General Manager .. M.Marketing (CCD) B.. Hindustan Unilever Limited Chief Financial Officer.126 3.A. A.872.G...P.Sales B. India Vice President -HR. C. Vice President -Strategy. Owens Brockway Chief Executive -Taxation.249 13.E.G..Com(Hons).. C.

64 46128393 30958858 138562650 4.A (See Rule 2) Form of Disclosure of particulars with respect to Conservation of Energy A. 357.) LDO Quantity (Kilo ltr) Total cost (Rs.) B.) Average rate per Kilo ltr (Rs.00 9.) Average rate per tonne (Rs.11 4536.23 265.58 7232.86 12362835 34547.) b) Own Generation: i) Through diesel generator Units Unit per litre of diesel oil Cost per unit (Rs.78 10. Electricity a) Purchased Units Total amount (Rs. Furnace Oil Quantity (tonnes) Total cost (Rs.) ii) Through Steam Turbine/Generator Units Unit per litre of Fuel Oil Cost/Unit (Rs.09 2007-08 Consumption per unit of production The Company is engaged in production of variety of products.) Average rate per tonne (Rs. 82 .65 Nil Nil Nil 2029113 2.Annexure ‘6’ FORM .) 4. hence the figures of consumption per unit of production are not ascertainable.05 221.05 6388162 28898.65 369.) 2.22 7663977 28897.) Rate per unit (Rs.92 22151084 4785311 3.92 127009100 27994. Others/internal generation HSD Quantity (Kilo ltr) Total cost (Rs. Power and Fuel Consumption 2008-09 1.) Average rate per Kilo ltr (Rs.48 29322821 119940207 4. Coal (specify quality and where used) (Bio Briquettes/Pet Coke for steam generation.86 22319456 5438.Boiler) Quantity (tonnes) Total cost (Rs.64 12125048 32802.83 181280160 25063.) Total cost (Rs.) 3.52 4103.

.... These new products were qualified with clinical trials and toxicity studies.. Foods Dabur Chyawan Junior that combined technologies from Ayurvedic and Food competencies was launched to extend the reach of herbal nutrition to new segments of consumers. benefitted from a new technology of superior perfume incorporation and delivery.. Sanifresh Extra Power was launched with higher active content and new formulation for better performance and consumer value.... Honitus Lozenges (Honimint flavour). Manufacturing Process of Malt Drink (Chyawan Junior) Herbal extraction process using a modified system Fast Hydration Gum for oil well drilling Benefits derived as a result of the above R & D a... efficacy optimization and safety assessment to ensure quality and performance of the products.. Mango. R&D has improved consumer value of existing products through product cost reductions and packaging innovations.. All developments benefitted from an integrated robust R&D process in raw material specifications development... Forest Fruit and Mixed Berries. Pudin Hara Active has been developed as an improved and more effective version of Dabur Pudin Hara. The manufacturing cost of Chyawan Junior came down by 1/3rd & gross margins improved from 13% to 36%.. 83 . and Trayodasang guggulu for urinary disorders. At the plant level R&D was also carried out for: • • • 2.... An important thrust within Ayurvedic area was expansion of Agro-biotechnology to medicinal plants for quality enhancement of several health care products. Specific area in which R & D carried out by the Company The R & D focus remains on development of safe and efficacious products to meet health and well-being needs of the consumers. Besides the aforementioned products. As part of continuous quality improvement. Tapayadi lauh....B (See Rule 2) Form of Disclosure of particulars with respect to Technology Absorption Research & Development 1. c.. anaemic conditions and neurological disorders respectively. Six fruit based beverages for modern trade are ready for launch. The combined efforts ensured a strong product portfolio in all categories including Ayurvedic. Pulpy Orange. Trendy Apple based drinks for out of home consumption by young adults are ready for market introduction in PET bottles. Home Care Home Care category R&D efforts resulted in an expansion of Dazzle range of products to Floor Cleaner. Dabur India Limited | Annual Report 2008-09 Directors’ Report Annexure ‘7’ FORM . Advanced Odonil Gel... A lower-cost Odomos product is in the last stage of readiness for market. Ayurvedic The above R&D efforts have lead to the development of new and improved products such as an Antacid Suspension.. R&D developed sensory attributes were deployed to ensure consumer acceptance and taste improvement.. Health Care.. In addition to new technologies and formulation innovations. Process development work for Honey was improved for capacity enhancement and efficiency improvement at the commercial level... Foods. R&D has enabled effectively for commercial scale farming of nine plant species that posed challenges in availability and medicinal quality. and a new variant of Hajmola tablets. Kitchen Cleaner and Silver Cleaner using two novel technologies for dirt trapping and stain removal.... the portfolio of Ayurvedic Classical products has been enriched with Hajrool yahood Bhasama... The mosquito repellent category added Advanced Odomos Naturals as a new offering. In the toilet cleaning segment. Honitus Chewable Tablets for cough. Personal Care and Home Care products. The newest introduction in air freshener category. The beverage set offers Crisp Apple.. Orange Peach. b.

made towards technology absorption. Foods Delighting consumers with taste and value. Total Protect Shampoo. 4. Amla Flower Magic Hair Oil. This cost sensitive category is also expected to benefit from many cost savings projects and raw material alternatives development in progress. product improvement. and air care category will expand into electrical diffusers and aerosols. Personal care The above R&D efforts lead to the development and launch of many new products in categories of Oils. A substantial part of the R&D efforts is dedicated to Chyawan Junior for taste enhancement and nourishment improvement through herbal science.93 lacs Rs. both Hair and skin products will be expanded with Ayurvedic ingredients as natural solution to beauty problems. Vatika Antidandruff Shampoo variants. 30% Reduction in BuIk wastage. 3. in brief. develop and optimize products for performance with the highest possible safety profile. Gulabari Spray. Skin & Oral Care e. while also providing nutrition. 209. Efforts. using non-stick coating and formulation change Upgradation in manufacturing Product improvement on sensory evaluation 84 Resulted in cost saving of Rs. Vatika Conditioners.97 lacs 0. Personal Care Within Personal Care. New methodologies and health science based techniques are in use to make the new products more efficacious and safer for daily use. Benefits derived as a result of the above efforts e. –Vatika enriched Almond Hair Oil. Home Care Much of the Home Care R&D focus will be on formulation in all categories to offer consumers variants in forms that fit the lifestyle and amenities available in a diverse population to increase penetration and consumption. 230. d.095% Technology Absorption. Babool Neem Toothpaste and Promise Red Gel. Hair. R&D continues to develop new capabilities modern science offers to discover. Expenditure on R&D (2008-09) a) b) c) d) Capital Recurring Total Total R&D expenditure as a percentage of Total Turnover Rs. cost reduction. Hard surface cleaners will offer variants for new surfaces. 2. Future plan of action: a. adoption and innovation Energy Conservation and Efficiency improvement Uniform heating in VTDs by hot water against earlier by steam. Adoption and Innovation 1. . R&D formulators are ensuring regulatory compliance for timely introduction of the Personal Care products in overseas business.30 per kg for chyawan junior.g. A Calcium Fluoride Toothpaste was developed and launched in Nigeria. Improved efficiencies and productivity.d.04 lacs Rs. 21. c. R&D is actively developing safe and effective remedies for lifestyle ailments and other niche areas like sugar-free products for weight conscious consumers. Real Burrst and Active brands. Many of these product variants helped expand International Business. Cost-effective formulations will also be a major thrust of the R&D. Gulabari Cold Cream. New technologies and products are also in development for male grooming and Oral hygiene. product development. energy and meal replacement continue to be the theme of Real. Ayurvedic Committed to the Health Care through Ayurvedic products.g. Ten new products are in the pipeline in several therapeutic areas for next year. b. import substitution etc.

. Total shampoo pack .... Germany... Minimising the use of water and hence better conservation of water... Unique & clutter Breaking shape in the Hair Oil Category with excellent sleeve design matching the shape of the bottle resulting in a very premium looking pack. 3 layer metallised laminate structure for shampoo sachet for added premiumness & high shelf impact.. Contemporary PP table top container for Meswak Toothpaste with three toothbrush with new graphics to upgrade the brand significantly. High lusture pigment based inks developed with Merck... Cleaner environment.. reason therefore and future plan of action Decoration change with improved aesthetics... Improved hygiene conditions. Improvement in water treatment plant through introduction of RO (Reverse osmosis system) for DM water.New Launch Dandruff control shampoo. Innovative packaging concept Dabur Chywanprash Improvement on water availability. In case of imported technology (imported during the last 5 years reckoned from the beginning of this financial year) following information may be furnished: Technology imported Year of import Has technology been fully absorbed If not absorbed.. No Flue gases through Waste burning..New Launch Almond Hair Oil Pack . 2 component FT cap for ease of oil dispensing with pearlised master batch for added premiumness.Table Top Dispenser Odonil Gel . areas where this has not taken place... a) b) c) d) Odomos Coil manufacturing Technology from Malaysia 2006-07 Yes N/A 85 . With the Foil stamping on the front panel..... gives distinctiveness from competition... Unique & clutter Breaking shape in the shampoo category with excellent sleeve design matching the shape of the bottle resulting in a very premium looking pack. High value perception & added premiumness through use of Metallic Gold & Red inks in the bottles & sachets..Round Pack 3..New Launch Meswak Family Pack.New Launch Amla Flower magic . Reduction in Water treatment cost. Parallel development of alternate Indian ink source which helped to generate the cost effective option. Dabur India Limited | Annual Report 2008-09 Directors’ Report Waste Management Developed in house technology to convert the fruit waste in to organic manure by using the Culture Lactobacilus burchi Fossil fuel replaced by Agro Waste Bio Briquettes in Steam Boiler Water Management and Conservation Minimum use of water in process by preconcentration of herbal extracts and reduction in concentration time. Reutilization of Waste water from Pump seal cooling and RO Reject water. Introduction of water efficient CIP system with Recycling of water in fruit juice manufacturing... Increased productivity..... Saved through waste disposal and generated revenue through the sale of organic manure.....

Holdings Pvt. Vertex Broadcasting Co. & Trading Company Shree Investments Limited Southern Enterprises Sunshine India Pvt. Ltd.B.Annexure ‘8’ Group for interse transfer of shares under clause 3(1) (e) of Securities & Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. B R Bee Products Pvt. Milky Investment & Trading Company Moonlight Ranch Private Ltd. Ltd. Ltd. Sanat Products Limited 86 . 1997 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Mr Ashok Chand Burman A C Burman HUF Dr Anand Burman Mrs Minnie Burman Mr Aditya Burman Mrs Shivani Burman Ms Anisha Burman Mr Vivek Chand Burman Mrs Monica Burman Mr Mohit Burman Mr Gaurav Burman Mrs Karima Burman Ms Sujata Burman V C Burman HUF Mrs Asha Burman Mr Amit Burman Mrs Divya Burman Master Adhiraj Burman Ms Diya Burman Mrs Gauri Tandon Mr Sandeep Tandon G C Burman HUF Mr Pradip Burman Mrs Meera Burman Mr Chetan Burman Mrs Pooja Burman Master Kamran Burman Ms Eishana Burman Ms Devika Burman Pradip Burman HUF Mr Sidharth Burman Mrs Indira Burman Mr Saket Burman Sidharth Burman (HUF) A. Western Enterprises Dr S K Burman Charitable Trust Eastern Enterprises Estate of Durga Prasad Makkar Trust Excellent (India) Private Limited Gyan Enterprises Private Limited Interx Laboratories Private Limited K. Upvan Farms & Services Pvt. Ltd. Ltd. Ltd. Dabur Ayurvedic Specialities Ltd. Ltd. Dream Cricket Pvt. Newage Capital Services Pvt. Dabur Securities Pvt. Ltd. A. Pvt. Limited Dabur Pharmaceuticals Ltd. KBC India Private Limited Lite Bite Foods Pvt. Limited Cavendish Hotels Private Limited 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 Chowdry Associates Chunilal Medical Trust Consortium Consumercare Pvt. Dabur Foundation Dabur GI Invest Corp Dabur Invest Corp Dabur Investment Corporation M. Burman Resorts Pvt. Acee Enterprises Adbur Pvt. Ltd. Ayurvet Limited Betteroption Estates Pvt.P. Ltd. Ltd. Vansh Holdings Pvt. Angel Softech Pvt. Malhotras Trading Company Pvt.B. Ltd. Northern Herbal Farms Pvt. Ltd. Ltd.H. Ltd.V. Ltd. Ltd. B. CNS Infotech (I) Pvt. Burmans Finvest Pvt. Ltd. Ltd. VIC Enterprise Private Limited Welltime Gold & Investments Pvt. Amit Laboratories Pvt. Propmart Pvt. Ltd. Windy Investments Pvt.A. Sahiwal Inv. Finance Pvt. Prayag Commercial Private Limited Elephant India Advisors Pvt. Ltd.B. Finmart Pvt. Wrapster Foods Pvt. Ltd. Ltd. Ltd. Puran Associates Private Limited Ratna Commercial Enterprises Pvt. Ltd. Ltd.

. As required by the Companies (Auditors’ Report) Order 2003... 1956. vi. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. i... in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.. ii. We believe that our audit provides a reasonable basis for our opinion.. proper books of account.... 2009. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of audit.. and In the case of cash flow statement. issued by the Central Government in terms of section 227 (4A) of the Companies Act... In our opinion and according to the information and explanations given to us. we report that none of the directors of the company is disqualified for the Office of the director within the meaning of section 274 (1) (g) of the Companies Act.. vii. 2009 and taken on record by the Board of Directors.. we enclose herewith in the annexure a statement of the matter specified therein. Balance Sheet and Profit & Loss Account have been prepared in due compliances of Accounting Standards referred to in sub section (3C) of section 211 of Companies Act... In our opinion.... examining on a test basis. evidence supporting the amounts and disclosures in the financial statement. For G BASU & CO. 1956. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account. v. We conducted our audit in accordance with auditing standards generally accepted in India. as well as. 1956. of the cash flows for the year ended on that date. An audit also includes assessing the accounting principles used and significant estimates made by management.. 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.. 2009 87 .. Lahiri Partner Membership No. as amended.. An audit includes. and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us. Dabur India Limited | Annual Report 2008-09 Financials We have audited the attached Balance Sheet of Dabur India Limited as at 31st March. iv. 2009 and its Profit & Loss Account and the Cash Flow Statement for the year ended on that date attached thereto.. Chartered Accountants S....A uditors’ Report To the Members of Dabur India Limited. evaluating the overall financial statement presentation.. 1956. the said accounts read in conjunction with Schedules A to O and read with other notes appearing in Schedule “P” give the information required by the Companies Act... iii.. as required by law have been kept by the Company so far as appears from our examination of books of account. a) b) c) In the case of Balance Sheet. of the State of Affairs of the company as at 31st March. 51717 New Delhi 29th April. On the basis of written representations received from the directors as on 31st March. of the Profit for the year ended on that date. and In the case of Profit and Loss Account.. ..

During the course of our audit no major weakness has been noticed in the internal controls. a) According to information and explanations given to us. 1956 in respect of products of the company covered under the rules under said section have been maintained. The discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the books of accounts. On the basis of our examination of the records of inventory. a) Based on audit procedures applied by us and according to the information and explanations provided by the management. the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund. 88 . The fixed assets have been physically verified by the management at reasonable intervals. no material discrepancies between book records and the physical inventories have been noticed on such verification. The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. we are of the opinion that the company is maintaining proper records of inventory. service tax. 4. We have not observed any failure on the part of the company to correct major weakness in internal control system. 9. The company has neither granted nor taken any loans. employees state insurance .ANNEXURE TO THE AUDITORS’ REPORT AS REFERRED TO IN PARA I OF THE SAID REPORT OF EVEN DATE 1 a) b) c) 2 a) b) c) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. secured or unsecured to/from companies. sales tax. cess and other statutory dues to the extent applicable to it.1956. excise duty. income tax. investor education and protection fund. Fixed assets disposed of during the year were not material enough to affect the going concern identity of the company. The inventories have been physically verified at reasonable intervals during the year by the management. the transactions of purchase and sale of goods/services made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. 3. However we are neither required to carry out nor have carried out any detailed examination of such accounts and records. On the basis of records produced we are of the opinion that prima facie cost records and accounts prescribed by the Central Government under section 209 (1) (d) of the Companies Act. The Company has not accepted any deposits from the public. According to information and explanations given to us. 8. or other parties covered in the register maintained under section 301 of the Companies Act . firms. In our opinion and according to the information and explanations given to us there is an adequate internal control system commensurate with the size of the company and the nature of its business for purchase of inventory and fixed assets and on the sale of goods. we are of the opinion that contracts or arrangements referred to in section 301 of the Act have been entered in the register maintained under that section. wealth tax. 5 b) 6. custom duty. As informed. 7. In our opinion the company has an internal audit system commensurate with it’s size and nature of its business.

10 4.52 6..D.48 14.. Commissioner Appeals Dy. in lacs) 1.12 2.44 0. Classification of Gulabari Classification of LDM Short payment of VAT Short payment of VAT Short collection of export certificates Rate of Tax difference Short payment of Entry Tax Intt.. Commissioner Appeals Dy.21 0. Commissioner Assessment -doDy.. Commissioner Appeals Dy.29 Period to which the amount relates 1993-94 1996-97 1997-98 1998-99 2000-01 2001-02 1993-94 1991-02 1990-93 1993-94 1999-00 2000-01 1998-99 2001-02 2003-04 1999-00 2002-03 2001-02 2002-03 2000-01 2003-04 2004-05 2003-04 2004-05 1999-00 2000-01 2003-04 2004-05 2003-04 2001-02 1999-00 2002-03 2000-03 2001-03 2001-02 2001-03 2003-04 2004-05 Forum where the dispute is pending Pending for Final Order ST Appellate and Revisional Board -do-do-doDy.57 2. Commissioner Appeals Addl.. Dues on account of Sales Tax/ Income Tax/ Excise Duty / Service tax disputed by the company and not being paid.88 27. Commissioner Appeals Asst Commissioner Appeals -doDy... Commissioner Appeals Dy.D.. Commissioner Appeals Dy.. Classification of L.59 1.19 5.31 18.. Commissioner Appeals Dy. Commissioner Appeals Tribunal -do89 b) Demand on Hajmola Candy Demand on Hajmola Candy -do-doClassification of Hajmola Candy Classification of Hajmola Candy Classification of Hajmola Candy Sales Tax on Stock Transfer Classification of L.58 6.84 3... Dabur India Limited | Annual Report 2008-09 Financials There is no disputed due on account of wealth tax and cess.48 2..79 0... Commissioner Tribunal Dy.28 0. Commissioner Dy...15 1.. Commissioner Appeals Dy..M..06 7.70 30.69 2.49 0. vis-à-vis forums where such disputes are pending are mentioned below:Sales Tax :Rs.20 0. Commissioner Dy. Commissioner (Appeal) Sales Tax -doHigh Court High Court High Court Dy.05 9.88 2.45 6.. on TOT & Surcharge Rate of tax difference Non submission of Form C Non submission of Form C Hajmola Candy/Form F Hajmola Candy/Form F Classification of Gulabari Classification of LDM Entry Tax Entry Tax Turnover Tax CSD Lease Tax Form 18A disputed Lease Tax Dispute on taxability of Coconut Oil Dispute on taxability Odonil tax rate Damage destruction disallowed Dispute tax perfered dealer and stocks tfr price Lease Tax Lease Tax .74 0....84 84....78 25.. in lacs Name of Statute Sales Tax -do-do-do-do-do-do-do-do-do-do-do-do-do-do-do-do-do-do-do-dodo-do-do-do-do-do-do-do-do-do-do-do-do-do-do-do-doNature of the dues Amount (Rs.65 27.04 0..M.03 29.77 2.. Commissiner Appeals Tribunal Dy. Commissioner Dy... Commissioner Appeals Dy.47 2. Commissioner Appeals Dy.. Commissioner Appeals Dy.. Commissioner Appeals Dy.64 26.80 7..82 66.29 0. on TOT & Surcharge Intt.. Commissioner Appeals Dy.

Rs.76 1998-99 2004-05 2003-04 1996-97 to 2002-03 ITAT CIT CIT Appeal Block assessment 96-97 Excise Duty :Excise Duty Classification of Anmol Coconut Oil -do-do-do-do-do-do-do-doService Tax Excise -do-do-do-do-do10.68 13.42 113.17 19.30 0. in lacs Name of Statute -do-do-do-do -do Nature of the dues Hajmola Candy/Chyawanprash Rate of Tax Juices Rate of Tax Juices Non Submission of Form F Tax imposed on Hajmola Candy Amount (Rs.91 1993-01 1996 1998 2004-05 1994-03 2002-03 2004-05 1994-00 2002 2004-05 2004-05 2001-02 2002 2005-06 1997-03 Dy.52 96. we are of the opinion that the company has not defaulted in repayment of dues to any financial institution. debentures and other securities.10 30. Commissioner Tribunal Commissioner Appeals/High Court Commissioner Appeals Tribunal Commissioner Commissioner Commissioner Appeals Commissioner Appeals Tribunal Commissioner Appeals Commissioner Appeals Tribunal Tribunal Commissioner Based on our audit procedures and as per the information and explanations given by the management. 11.35 3.75 0.54 7. The Company has not granted any loan or advance on the basis of security by way of pledge of shares.07 174. Modvat on Capital goods Modvat on in-puts (57H) Hajmola Candy Classification on Animal Feed supplement Post manufacturing expenses Post manufacturing expenses Classification of Janma Ghunti Mahachandni Tail Import of service Classification of Processed Tamarind Kewra Water Post Manufacturing Expenses Capital Goods Removal Valuation of Docetaxel/Paclitaxel Freight on Wt average 514.43 10.02 75. Commissioner Appeals -do-do-doPending before S J Appeals Income Tax :Income Tax Demand u/s 263/143(3) -do-do-doDemand u/s 143(3) Demand u/s 271 (I) © Demand u/s 158 BFA 34. bank or debenture holder. we are of the opinion that proper 90 .07 58.82 2.38 79.80 11. 12.56 Period to which the amount relates 2005-07 2003-04 2004-05 2004-05 2005-06 Forum where the dispute is pending Dy. in lacs) 17. Based on our examination of the records and evaluations of the related internal controls. Commissioner Appeals Dy.22 498.00 277.60 0.95 3.34 1.86 59.

Lahiri Partner Membership No 51717 New Delhi 29th April... securities. debentures and other investments dealt in by the company and timely entries have been made in the records.... The Company has given guarantees for loans taken by others from banks or financial institutions.... The price at which these shares were issued are not prima-facie prejudicial to the interest of the company... 14. 19. The company has made preferential allotment of shares under their ESOP Scheme to the parties covered in the register maintained under section 301 of the Companies Act. debentures and other investments in its own name except for those pending transfer in Company’s name. Other clauses of the order are not applicable to the Company.... 20.. BASU & CO.. For G... The Company has not raised any fund through public issue during the year. We also report that the company has held the shares... 16. Based on information and explanations furnished by the management. The Company has not issued any secured debentures during the year... 13.. there were no frauds on or by the company noticed or reported during the year. 17.... securities. No short term fund has been applied for long term purpose. The term loans taken by the company have been applied for the purpose for which they were raised.. 18. Chartered Accountants S.... The terms and conditions thereof are not prima facie prejudicial to the interest of the company. 1956 during the year.. 2009 91 .. 15...... Dabur India Limited | Annual Report 2008-09 Financials records have been maintained of the transactions and contracts relating to shares. which have been relied upon by us.

D.72 88.69 2.01 14.644. 2008 As per our report of even date attached For G.395.51 26.43 6.114. Loans and Advances: (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Loans & Advances Less: Current Liabilities and Provisions (A) Liabilities (B) Provisions Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Notes to Accounts Total P 90.826.293.733.003.34 As at March 31.727.77 29.76 65.74 C D EB 825.510.97 57. Narang Sunil Duggal Chairman Whole time Director Whole time Director A.294.171. BASU & CO.71 31.353.78 18.138.69 10.55 864.689.50 90.11 52.46 18.046.982.33 74. 2009 As at March 31.722.13 2.08 31.650.976.56 13.91 7. Jain GM (Finance) & Company Secretary 92 .419.97 1.048.168.044.855.48 22.048.69 13.897.443.48 (2. Chartered Accountants S.75 55.59 2.46 20.33 F 57. Dr.15) 1.648.236.23 44.91 73.819.97 58.192.765.01 27.09 21.67 8. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd.640.765.64 11.B alance Sheet as at March 31.400.832. except share data) Schedule SOURCES OF FUNDS : Shareholders’ Funds: A) Share Capital B) Reserves and Surplus Loan Funds: A) Secured Loans B) Unsecured Loans Deferred Tax Liability Total APPLICATION OF FUNDS : Fixed Assets : (A) Gross Block (B) Less : Depreciation (C) Net Block Investments Deferred Tax Assets Current Assets.540.263.09 48.11 43. 2009 (All amounts in Indian Rupees in lacs.42 1.037.00 A B 8.00 IA EA 35.25 3.20 66.071.504.42 57.K.294.27 G EB H 26. Anand Burman P.728.368.281.98 36.

each) Basic Diluted No of Shares Basic Diluted Notes to Accounts As per our report of even date attached For G.58 31.04 201..46 50..) (Face Value Re 1/. except share data) Year ended March 31.575..606.00 42.99 54.07 8..367..55 154.790....102.65 1.86 211.39 4.742. Jain GM (Finance) & Company Secretary 93 . Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs..922.99 0.355..11 7.901.D.17 1.000.101..55 394.50 566..827.87 36.339.68 6.95 9.60 2.79 2..355..57 14. Chartered Accountants S.499..606...26 174.677.76 1. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd.057..32 4.31 864.97 37.32 707.80 3.59 4.. 2009 Schedule .81 31.076.64 863.26 0.470.833.00 7.86 3. BASU & CO.439. Narang Sunil Duggal Chairman Whole time Director Whole time Director A.00 32.54 6..422.37 1.84 42.45 (255.130.000.985.43 K L M N O IB 122.09) 650.907.50 239.650.259 P Year ended March 31.306.65 68.21 18.642 869.00 37.778.156.98 854.46 102.19 54.732.969...80 6.26 208.612.243..915.66 3.461 Income : Sales Less Returns Less: Excise Duty Net Sales Other Income Total Income J Expenditure : Cost of Materials Manufacturing Expenses Payments to and Provisions for Employees Selling and Administrative Expenses Financial Expenses Miscellaneous Expenditure Written Off Depreciation Total Expenditure Balance being Operating Net Profit before Taxation Provision for Taxation : Current Deferred Fringe Benefit Net Profit after Taxation and before Extraordinary Items Credit Balance Transferred from Merged Entity Net Profit after Taxation and Extraordinary Item Balance Brought Forward Provision for Taxation of earlier years written back Provision for Taxation for earlier year Appropriations Interim Dividend Proposed Final Dividend Corporate Tax on Interim Dividend Corporate Tax on Proposed Dividend Transferred to Capital Reserve Transferred to General Reserve Balance carried over to Balance Sheet Earning per share (in Rs.89 2.04 243.59 4.20 0.333.28 1.826...23 45..759 868.05 6..480..525.695.05 69.18 2.K.13 16.322.748.. Anand Burman P.488.11 71.101.31 40.525.807..P rofit & Loss Account for the year ended March 31.322.79 22...68 69. 2009 242.616.751.25 75.68 4.480.26 32.517.. Dr..894.. 2008 211.

06 6.842.191. except share data) Year ended March 31.088.37 1.01 B.203.585.79 5.813.04 (23.019.098.36 1.22 13.55 42.45 287.805.05 32.517.714.64 3.31 47. Written Off Miscellenous Exp.405.067.69) 5.96 2.78) 94 .04) (4.68 870.989.S tatement of Cash Flow (Pursuant to AS-3 Issued by ICAI) (All amounts in Indian Rupees in lacs.575.47 39.293.06 (1.55 1.56 (17.26 566.798.67 31.12 4.92 47.39 854.73) 1.67 258.45 2.130. Cash Flow from Operating Activities Net Profit before Tax and Extraordinary Items Add: Depreciation Loss on Sale of Investment Provision for Contingent Liability Loss on Sale of Fixed Assets Fixed Assets Impairment Loss Miscellenous Exp.68 981. 2008 36.74 (1.539.631.59 2.38 38.056.686.680.12 1.086.28 7.742.650.38 41.10) 387.04 13.751.357.84 2.42) 250.53 A.49) 284.976.22 45.769.101. Cash Flow from Investing Activities Purchase of Fixed Assets Sale of Fixed Assets Purchases of Investment including Investment in Subsidiaries Sale of Investments Cash Used(-)/(+)Generated for Investing Activities (B) (9.442.32 39.59 2.59 (401.31 6.329.337.029. 2009 Year ended March 31. Written Off (Included in Director Remuneration) Interest Less: Profit on Sale of Investment Profit on Sale of Assets Operating Profit before Working Capital Changes Working Capital Changes Increase/(Decrease) in Inventories Increase/(Decrease) in Debtors Decrease/(Increase) in Trade Payables Increase/(Decrease) in Working Capital Cash Generated from Operating Activities Interest Paid Tax Paid Corporate Tax on Dividend Cash Used(-)/(+)Generated for Operating Activities (A) 1.90 328.455.838.50 4.333.95 1.499.57) 412.57 (297.94 40.27 1.26 438.324.707.

46 14.422.48 As per our report of even date attached For G..37) 816..90 (6... BASU & CO.. Dr.39 (1.... Anand Burman P.282.24) (977.92) (491.968..10) (12. Jain GM (Finance) & Company Secretary 95 ..404.53 (327..00 6........ 2008 11.647..826.46 C..368. 2009 Year ended March 31.75) (3..72 (183.D..542. Chartered Accountants S.24) 12.K.. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs..02 6.929.. except share data) Year ended March 31.77) 1.519.. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd...25) 7.46 5.47) (11.. Narang Sunil Duggal Chairman Whole time Director Whole time Director A.....982..826. 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 other Advances of the nature of Loan Payment of Dividend Cash Used(-)/+(Generated) in Financing Activities (C) Net Increase(+)/Decrease (-) in Cash and Cash Equivalents (A+B+C) Cash and Cash Equivalents Opening Balance Cash and Cash Equivalents Closing Balance 10.47) (1.308...

11 866.51 527.05 5.500.00 14.99 96 .650.640.785.50 5.47 2.575.09 510.000. Of the above shares issued & subscribed.500.617.640.27) 42.1 each fully called up (Previous year-864022973 equity shares of Re.894.23 3.85 2.78 220.575.07 5. 1 each) 14.336. except share data) As at March 31. Of the above Shares 45543336 shares have been allotted as fully paid up pursuant to schemes of amalgamation/merger without payment being received in cash. 2009 Schedule A .21 2.23 8.296.834.39 65.67 7.76 8.05 3. 2.93 510.1 each (Previous year 1450000000 equity Shares of Re.77 42. Schedule B .91 1.168. 1 each fully called up) 8. 6101140 (previous year 5047864) shares have been allotted upto 31st March 09 under Employees Stock Option Scheme.Share Capital Authorised : 1450000000 Equity Shares of Re.090.80 3.192. 2009 (All amounts in Indian Rupees in lacs.67 (6.500.292.500.575.00 355.650.00 NOTES : 1.68 (623.00 As at March 31.71 525.23 14.336.193.54 40. Of the above shares 755717743 shares have been allotted as fully paid up bonus shares from share premium account (286651392 shares) and capitalisation of free reserve (469066351 shares) 3.76 8.090.21 32.S chedules Annexed to and forming part of the Balance Sheet as at March 31.50 332.00 9.99 3.452.322.95 866.894.54 0.54 2.51 44.49 2.36 9.00 14.392.834.36 32. Of the above shares 1053276 (previous year 1139165) shares have been allotted during the year and 3995407 (previous year 5073660) shares are outstanding under Employees Stock Option Scheme. 4.71 2.337.759.Reserves and Surplus Capital Reserve : As per last account Add : Transferred from merged entities Add : Transferred from Profit & Loss A/c Share Premium Account Add: Premium on issue of Shares General Reserve : As per Last Account Add : Transferred from Profit & Loss Account Add/(Less) : Utilized for Service Benefit Add/(Less) : Deferred Tax applicable thereon Profit and Loss Account Employee Stock Option Scheme Outstanding As per Last Account Add: Addition during the year Less: Allotted during the year Less: Deletion during the year Total 2. 2008 14.52) 2.33 3.74 525.54 15.336.36 1.78 2.833.322.000.76 529.822.00 Issued and Subscribed: 865076249 Equity shares of Re.291.

.00 13. 2009 As at March 31.....36 109.000. Ghaziabad.. except share data) As at March 31.78 65. Sahibabad. ABN Amro Bank.....38 1.97 NOTES: Maximum amount of commercial papers outstanding during the year Rs.from Banks : Secured by : Hypothecation of inventories and book debts ranking pari-passu among Punjab National Bank.Unsecured Loans Book Overdraft of Current Account with banks Short term loan from bank Security Deposit from dealers and others Commercial Papers (HSBC Ltd.000.56 1. Standard Chartered Bank Ltd.93 11...) Total 0.. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs. Site IV Industrial Area. 5/1 and 5/13.69 23... United Bank of India.... IDBI Bank Ltd.00 70.74 Schedule D ...19 88. Industrial Area...098.071. PO...62 218. 2000..76 2. Site IV. HDFC Bank Ltd and ICICI Bank Ltd 825.. Nil) 97 . CITI Bank NA. Jalpaiguri B. Sahibabad.. 2008 Schedule C .18 436.. Short Term Loans ...644.... Hongkong & Shanghai Banking Corporation Ltd.72 607.Secured Loans A I) Term Loans (Other than Bank) : PICUP under Trade Tax Loan Scheme Secured by: First charge on the movable and immovable assets inlcuding plant and machinery (present and future) situated at Plot No. State Bank of India.00 (Previous year Rs... II) GE Capital Services India Secured by: First charge on the movable and immovable assets including plant and machinery (present and future) situated at Kartowa. Ghaziabad and second charge on movable assets including plant and machinery of the company (present and future) located at Plot No 22... Mahanvita Distt.

20 175.999.193.00 2.311.42 17.249.09 695.23 2. Provisions : For dividend (proposed) .400.70 12.29 215.169.80 7.51 8.540.34 1.71 31.883.91 1. 2008 Schedule EA .399. 2009 As at March 31.03 5.22 4.40 15.92 5.263.29 4.68 1.07 399.648.18 -623.49 2.65 35.97 2353.27 -255.41 368.35 294.85 39.68 7.73 6.82 256.754.722.27 1.47 59.91 26.96 19.77 4.62 12.87 193.384.76 1. except share data) As at March 31.91 3.21 75. to the extent identified by the company.480.17 1.(All amounts in Indian Rupees in lacs.616.96 4.289.765.650.final For corporate tax on proposed dividend-Final For liabilities disputed For Gratuity For Leave Salary For Others For Taxation : Brought forward Transferred from merged entities Provision for the year Adjusted during year 4.850. Small & Medium Enterprises Development Act. 2006.84 9.158.86 17.80 0.443.10 195. Current Liabilities : Acceptance Creditors for Goods SME Units (Principal) Others Creditors for expenses and other liabilities Advances from customers Interest accrued but not due on loans Deposits .48 Note : SME units as above means units registered as micro and small enterprises under Micro.50 19.749.101.90 268.31 162.09 2.799.46 1.238.20 66.727.14 5.81 0.Deferred Tax Liabilities (Net) Deferred Tax Liaibility : Depreciation Less: Deferred Tax Assets : VRS payment Other disallowances under Section 43B of Income Tax Act 1961 Provision for Contingent Liabilty charged Service benefits Provision for doubtful debt Net Deferred Tax Liability (Decrease)/Accretion in deferred Tax Liability Less: Deferred Tax Liability/(Assets) inherited on merger Less : Deferred Tax Assets TRF /(from) to general reserve Deferred Tax Liability provided during year 3.97 58.23 (1.Current Liabilities and Provisions A.811.510.48 1.72 1.66) -318.138.470.020.54 749.72 115.940.Others Investor Education and Protection Fund to be credited by : Unpaid dividend Unpaid matured public deposit Interest accured on public deposit B.81 12.649.88 419.527.32 98 . Schedule EB .94 6.048.249.17 42.74 327.678.92 31.

01 Trf.443.00 0.311.173.78 1.00 0.33 135.95 194.25) DFL means .00 0.09 57.98 18.71 933.054.15 477..04..05 0.176.626.2008 Trf.94 858. From DFL Additions Deletion Gross Block 31.04.10 1.05 795.15 2.42 13.83 155.00 0.45 254..620.502.084.02 0.30 1.048..99 4.Schedule .02 22..976.00 2.42 0.11 0.71 923.59 2. Dep 31.65 462.00 238.22 5.112.. .01 1.01 0.003.43 48.49 13.17 556.00 0..04 2..97 16..897.2008 761..00 59.056.171.493.141.87 846.96 577.58 612.92 860.205.08 0.00 673.18 262. 591...560.84 942..72 178.Dabur Foods Ltd.90 5.01 1.040.03..07 1..71 269.056.14 0..976.813.93 64.56 9.75 11.73 0.35 24.09 36.00 21.2009 31.90 79.11 29.05 1..77( Previous Year Rs.00 1. Dabur India Limited | Annual Report 2008-09 Financials 99 .52 1.76 1.65 3..F (All amounts in Indian Rupees in lacs.36 0.00 1.58 132. from DFL Addition Deletion Accmu.55 471. except share data) GROSS BLOCK DEPRECIATION NET BLOCK Name of Assets Opening 01.00 0.419.07 447.01 3.443.79 2.95 2.76 9.90 393.46 12.717.97 607..00 0.41 3.17 129.416.47 516.22 5.575.00 0..870.00 73..00 0.743.363.19 0.26 0.2008 31..197.39 812.171.87 994..18 3.433.74 150.78 10.09 48.84 1.22 1.00 383.12 4...342.36 831.66 153..626.86 634.742..044.94 1..2009 Opening 01.07 2.91 417.77 0.05 11.060.11 1.112..64 555.53 236.93 9.03.48 0.36 0.00 0.78 16.78 40.00 10.141.790.43 29.375.03.036.03.2009 Freehold Land Leasehold Land Buildings Plant & Machinery Computer Vehicles Furniture & Fixture Trade Marks & Patent Computer Software Live Stock CWIP Total Previous Year Note : Capital work in progess includes advance against capital goods Rs.11 979.22 1..445.645...419.357.07 18.499.964.16 2.870.00 148.56 429. 464.801.79 4.00 761...914..64 0.16 0.

150752 (Sold during the year) Units 121112797.72 1.9261703 Lotus Liquid Fund (Purchase during the year) Units 153478044.00 2.625.00 0.572562 (Sold during the year) Units 558945792.100.00 500. 2008 Schedule G .(All amounts in Indian Rupees in lacs.5186717 (Sold during the year) Units 37968346.882131 (Sold during the year) Units 158366825.00 Birla Mutual Fund (Purchase during the year) Units 121112797.936912 12 Principal Mutual Fund (Purchase during the year) Units 166343795.000.336577 (Sold during the year) Units 187288554. 2009 As at March 31.00 1.570091 (Sold during the year) Units 19105976.00 5 0.00 8 - 0.00 3 16.03.500.492204257 (Sold during the year) Units 790470.Investment A Current Investments Quoted-other than Trade 1 Fidelity Cash Fund (Purchase during the year) Units 8771890. except share data) Numbers (As on 31.923.847.527225 (Sold during the year) Units 136718053.75243 (Sold during the year) Units 172847455.00 4 0.00 6 - 0.00 - 0.Institutional Plus-Growth (Purchase during the year) Units 34290031.00 1.00 0.00 7 - 0.000.8455878 TAURUS Mutual Fund (Purchase during the year) Units 1000000.00 29.49 4.000.76867636 (Sold during the year) Units 8771890.00 5.00 0.936264 DWS Mutual Fund (Purchase during the year) Units 35302900.00 0.464.000.492204257 ABN Amro Mutual Fund (Purchase during the year) Units 64267024.5186717 11 Kotak Mahindra Mutual Fund (Purchase during the year) Units 172510038.2009) As at March 31.9262336 (Sold during the year) Units 78743495.00 (Sold during the year) Units 1000000.036589 13 Prudential Mutual Fund (Purchase during the year) Units 152950391.00 0.00 - 0.00 0.53 0.5657227 DSP Mutual Fund (Purchase during the year) Units 790470.00 500.00 10 JPM Mutual Fund (Purchase during the year) Units 37968346.00 0.742.196.150752 CHOLA Liquid Fund .5657227 (Sold during the year) Units 34290031.76867636 2 LIC Mutual Fund (Purchase during the year) Units 547725682.00 9 - 0.00 100 .471306 - 0.00 2.131956 0.

...771289 5..22618691 27 Canara Mutual Fund (Purchase during the year) Units 229047405.09 (Sold during the year) Units 102678288..1800792 (Sold during the year) Units 30665991.89056 15 HSBC Mutual Fund (Purchase during the year) Units 39191924.00 - 0...00 101 .00 2..1800792 17 Sundram Mutual Fund (Purchase during the year) Units 80811230..500.00 300.7299512 (Sold during the year) Units 72668243.000.712498 16 SCB Mutual Fund (Purchase during the year) Units 25665991.330....00 0.0185951 18 TATA Mutual Fund (Purchase during the year) Units 56908798.00 1..500. except share data) Numbers (As on 31.500.933 26 Edelweiss Mutual Fund (Purchase during the year) Units 3993474.3048918 (Sold during the year) Units 32237365..(Contd.00 1.1800792 (Sold during the year) Units 30665991.00 - 0..) 14 Reliance Liquid Fund (Purchase during the year) Units 148465721..3659011 (Sold during the year) Units 90628387.402.00 - 0.980.2009) As at March 31.00 2..000.933 (Sold during the year) Units 315407. 2008 Schedule G . 2009 As at March 31.22618691 (Sold during the year) Units 3993474.000..374922 (Sold during the year) Units 205644424.00 23.00 12..00 - 0..00 - 0.60 2.3659848 24 ING Mutual Fund (Purchase during the year) Units 29303695.00 - 0.529..00 500.500.7409119 20 HDFC Mutual Fund (Purchase during the year) Units 50028812.00 500..000..712498 (Sold during the year) Units 39191924.0504174 (Sold during the year) Units 64128014.00 0.88 2...508.00 - 0..000.00 1..00 0...00 - 0.00 - 0..03.09 22 SBI Mutual Fund (Purchase during the year) Units 25665991..00 0.1800792 23 JM Mutual Fund (Purchase during the year) Units 80628387.0331399 25 MIRAE Mutual Fund (Purchase during the year) Units 315407...7434285 (Sold during the year) Units 59865117..00 0.00 500.. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs.0349764 21 Templeton Mutual Fund (Purchase during the year) Units 102678288.7025466 19 UTI Mutual Fund (Purchase during the year) Units 29865117.00 - 0.3619198 (Sold during the year) Units 82634827..108742 (Sold during the year) Units 166847032.00 3.00 - 0.

00 1.064.00 4.847.83 551.00 15 3 250 650 500 1.10 0.550.200.689.Other than Trade 1 Dabur Pharma Ltd (Sold during the year Shares 100000) II) Unquoted -Equity Shares .13 20.50 4.Other than Trade 1 Commerce Centre Cooperative Housing Society Limited 2 Capexil (Agencies) Limited 3 Dabur Employees Consumers Co-op Stores Limited 4 Dabur Employees Cooperative Credit Society Ltd 5 Co-operative Stores Limited.600.00 0.Trade Investments 1 Sanat Products Ltd 2 Dabon International Pvt Limited III) Unquoted Equity Shares -in wholly owned Subsidiary Companies 1 Dabur International Limited 2 H & B Stores Ltd (195000000 shares allotted during the year) IV) Unquoted Equity Shares .00 1.00 0.2009) As at March 31.59 31.150.000 4.58 26.772.00 20.000 4.00 27. 4 Disclosure of shareholding in subsidiaries is as follows : Name of Subsidiaries % Stake Dabur International Ltd 100% held by Dabur India Limited H & B Stores Ltd 100% held by Dabur India Limited 102 .00 27.03.00 100.07 0.05 1.000.13 6.912.00 20.01 0.00 0.50 2. Advance against equity shares of Fem Care Pharma Ltd (paid during the year) TOTAL Less provision for diminution in value of long term trade investment Total NOTES : Aggregate Book Value of Unquoted Investments Aggregate Book Value of Quoted Investments Aggregate Market Value of Quoted Investments (Based on March 31.36 43.02 0.07 0.484.00 0. 2008 Schedule G .777.000 415.27 0.14 0.27 0.465. Super Bazar 6 National Saving Certificates 7 Kisan Vikas Patra 8 Saraswat Co-op Bank Ltd 9 Forum 1 Aviation Ltd (4550000 equity shares allotted during the year) V) Government Bonds (entirely purchased during the year)other than Trade Power Finance Corporation of India Power Finance Corporation of India Power Finance Corporation of India IRFC Limited Rural Electricfication Corporation of India C.00 27.000 105.12 26.60 548.00 0. Share Application money Pending Allotment in Subsidiary (paid during the year) D.00 105.54 11.00 0.07 0.07 0.037.73 NOTES : 1 All Equity shares are fully paid up.518. 3 Share Application Money pending allotment pertains to H & B Stores Ltd.000 270.01 0.61 549.39 300.716.265.465.05 11. 2009 As at March 31.75 0. 2009) - 0.03 0.03 0.05 1.99 27.000 0.00 50.) B.(All amounts in Indian Rupees in lacs.00 20 50 50 50 30 199.(Contd. Long Term Investment I) Quoted-Equity Shares.02 0. 2 Provision for dimunition in long term trade investment pertains to investment in Dabon International Pvt Ltd. except share data) Numbers (As on 31.99 43.10 456.

33 74.891..34) Advance payment of Tax Advances to suppliers (Including Subsidiaries Rs.46 36.46 3.372.16 11..62 1.Packing materials.368.00 0..48 51.81 517.23 243.14 3..02 885.02 368.776..79 517.09 90. 2008 Schedule H .50 10.046.. the Current Assets. 2. Considered Good) Loans & Advances to Companies Security Deposit with various authorities (including Deposit with Govt...000.46 183.705. 10) .171..Other Debts (Considered Good) Cash and Bank Balances : .Cash in Hand ..14 in Unpaid Dividend Account . 2009 As at March 31.66 26.13 8.71 1.41 11.93 1. Previous year Rs. Debts due from director/officer of the company B. Authorities Rs.84) Advances to Employees Balance with Excise Authorities Other Advances recoverable in Cash or in kind or for value to be Received Total (A+B) NOTES : 1.55 995.28 22..826..55 14. 384..00 0.97 368.00 58.236.Stock in process . Previous year Rs.728.Current Assets.877.10 1.Finished goods Sundry Debtors (Unsecured) : . Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs.261.380..Remittance-in-transit & Cheques-in-hand B.293. 215...749.43 1.07 1.49 18. Nil.96 3.61 24.26 1.Balances with Scheduled Banks In Current Accounts ( Includes Rs.94 20...31 16.. Loans and Advances (Unsecured.19 12.07 0.79 9..Inventories ..3.21 1.235. 421. In the opinion of Board.47 3.327.542. Loans and Advances A Current Assets : .81 6.75 55.54 227.64 5.76 5.. except share data) As at March 31..40 6... previous year Rs.21 26.350...33 7.152. Previous year Rs..987. Loans and Advances 0.21 935.69 26.677.913.132. Maximum amount due from director/office of the company at any time during the year 103 .114.85.. Loans and Advances have realizable value at least equal to the amount at which they are stated.235..905.123.504.209.14 7.28 1.126.26 9.. stores and spares .819.03) In Fixed Deposit Accounts (Pledged with Government Authorities Rs 10.41 1.58 A..Raw Materials .. 256.Debts outstanding for a period exceeding six months : Considered Good Considered Doubtful Less : Provision for doubtful debts .01 10...410.Balance with Non Scheduled Banks In Fixed Deposit Accounts .621..311.281.64 22.

385.33 220.80 2.33 31.07 0.(All amounts in Indian Rupees in lacs. A) Loans and Advances to subsidiaries 0.12 18.85 1.37 9.953.27 9.08 864.Dabur Research Foundation (a company under Section 25 of The Companies Act 1956) Additional disclosure as per Clause 32 of Listing Agreement Dabur International Ltd.23 332.27 671.00 0.) C.262.35 1. Debts due from private companies in which any of the director is a director or a member .08 845.395.00 0. 2008 Schedule H .00 1.(Contd.08 0. 2009 As at March 31.Miscellaneous Expenditure (To the extent not written off or adjusted) Technical knowhow fees paid Less: Amortised during the year Deferred employee compensation under ESOP Opening Balance Addition during the year Less: Cancelled during the year Less: Amortised related to subsidiary Less: Amortised during the year Total 9. : amount outstanding Maximum outstanding during the year 2.90 527.29 Schedule IA .37 1.00 28. except share data) As at March 31.80 529.90 1.772.93 864.00 3.385.580.28 44.75 1.37 104 .

43 75.93 47.126.404.79 Schedule IB .47 3...778.. Previous year Rs 40) 230.25 242. except share data) For the year ended March 31.14 7.842.86 Schedule K .02 950.94 373.31 548.13 3..794.89 681.94 11.86 465.306...012.171.91 36..12 63...57 Schedule L . 2009 .485..Miscellaneous Expenditure Written Off Technical knowhow fees paid Deferred employee compensation under ESOP Less: Transferred to Director remuneration Total 9.49 4..95.311..242..918..372.97 51.921.81 388.24 3. 2009 For the year ended March 31.120.84) 122.82 223..03 5. Other Income : Export Subsidy Rent Realised (Tax deducted at source Rs.96 3.350. Nil.33 33.Sales and Other Income A.75 36..25 7.350.54 3.42 32.04 3..87 10.891.76 1.12 384.04 566.120..08 (303.17 28.87 6.35 297..24 7..39 8.09 10.90 14.Other than trade Profit on sale of Fixed Assets (Including Capital Profit of Re.55 2.985.93 287.63 45.12 3.99 969.65 1.418.08 5..002.94 11..64 723.525.938.819..242.891.64 12..173. Previous year Rs.53 11..293.56 503.764.320.Manufacturing and Operating Expenses Power and Fuel Stores & Spares Consumed Repairs & Maintenance — Building — Plant & Machinery — Others Processing Charges 105 .33 56.27 1.66 15.37 219.901.367.84 4.888.56 32.790..130.Cost of Materials Raw Materials Consumed : i) Opening Stock ii) Add : Purchases iii) Less : Closing Stock Packing Materials Consumed : i) Opening Stock ii) Add : Purchases iii) Less : Closing Stock Purchase of Finished Products Adjustment of Stocks in process and Finished Goods Opening Stock : Stock in Process Finished Products Closing Stock : Stock-in-process Finished Products Increase(-)/Decrease in Stock in Process and Finished Goods 5..37 671.90 387.88 41.47 58.065.205.385.172.199.11 3..75 845.14 7.71 29.315.243.32 557.87 31.26 9.041.56 1..06 46...50 2.59 7.074.692.92 (3.450.S chedules Annexed to and forming part of Profit and Loss Account for the year ended March 31..77 211.18 Schedule J .662.81 394.23 3.417. 0. Nil) Sale of Scrap Royalty Miscellaneous Receipts Profit on sale of long term Investment-Other than trade Profit on sale of current investments.076.749.96) 102. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs.162.04 201.51 361..749.57 28. 2008 18... Sales : Domestic Sales Less Returns Export Sales B.833.

48 977.82 1.Provident Fund and Certificates Donation Contribution for Scientific Research Expenses Bad Debts Written Off Provision for Doubtful Debts (Net of Excess Provision written Back Rs 19. except share data) For the year ended For the year ended March 31.72 228.492.74 Previous year Rs. Previous year Nil) Loss on Sale of Fixed Assets Provision for Contingent Liability Fixed Assets Written Down 1.(All amounts in Indian Rupees in lacs.82 13.38 23.53 7. 112. 2008 Schedule M . 2009 March 31.274.08 101.690.46 12. 287.85 1.18 307.05 363.69 525.00 13.41 19.36 482. Previous year Rs.76 2.241.896.37 10.63 1.63.74 211.262. 237.901.20 21.Payments to and Provisions for Employees Salaries.Audit Fee .98 Schedule O .429.53 0.73 348.01 5. 7.73 24.12.01 2.919.78 266.97 TDS thereon Rs.14 Schedule N .139.35 306.31 under ESOP) 13.79 5.08 458.45 19.732.74 135. Fax Expenses Security Expenses General Expenses Directors’ Fees Auditors’ Remuneration: .93 272.29 75.827.Financial Expenses Interest paid on : Fixed Period Loan Others (Net of Int.262.333.61 28.071.15 854.253.12 14. received Rs.55 336.30 184.41 16.00 39.15 984.22 258.51 1.09 54.71 165.93 299.50 106 .58 318.082.37 51.23 1.20 11.853.98 737.68 1.007.01 165. Discount and Rebate Advertising and Publicity Travel & Conveyance Legal & Professional Telephone.26 50.Selling and Adminstrative Expenses Rent Rates and Taxes Insurance Sales Tax Freight and Forwarding Charges Commission.01 6.67 13.77 73.809.28 268. Wages and Bonus Contribution to Provident and other Funds Workmen and Staff Welfare Directors’ remuneration (including perquisites Rs.51 0.13 18.12 1.94 TDS thereon Rs 12.92 1. 297.153.76 2.30 257.969.90) Bank Charges 666.80 45.88 291.409.Branch Auditors’ Fee .Reimbursement of Expenses .00 13.61 548.067.

.. individual tangible fixed assets of various CGU’s are identified for written down on the ground of obsolescence.. duties.e. is charged against revenue of the year.. is transferred from profit & loss account to capital reserve... when crystallizes. 4. Deferred Entitlement on LTC : In terms of the opinion of the Expert Advisory Committee of the ICAI. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs.. Accounting Convention : The accounts have been prepared in accordance with the historical cost convention. Long term investments are held at cost less diminution.. except share data) Schedule P . 2. 5. A.. • For New Projects. taxes and other expenses incidental to acquisition and installation... by way of proportionate allocation of subsidy amount thereon. 2009.... Impairment loss. any profit earned towards excess of sale value over gross block of assets. damage. forming part of subsidy scheme granted... subject to deduction of accumulated depreciation... Apart from test of impairment within the meaning of AS 28 issued by ICAI. • Patents are being amortized over the period of ten years on straight line basis.. • During sale of fixed assets.. stores & Spares — Weighted Average Basis • Work-in-process — Cost of input plus overhead upto the stage of completion.. Inventories : Stocks are valued at lower of cost or net realizable value. • Software are being amortized over the period of five years on straight line basis.26 respectively issued by ICAI for the purpose of arriving at impairment loss thereon.. ... Loss. Basis of determination of cost remain as follows: • Raw materials. Alwar unit and Narenderpur unit where depreciation have been provided for on written down value methods at the rates specified in the aforesaid Schedule.. if any... ACCOUNTING POLICIES Significant accounting policies are summarized below: 1. sustained by any subsidiary is not recognized. Packing materials. if any. Depreciation is charged on net fixed assets after deduction of subsidy amount.. 107 3. • Finished goods — Cost of input plus appropriate Overhead.. 7. all direct expenses and direct overheads (excluding services provided by employees in company’s regular payroll) are capitalized. Research and Development Expenses : Contributions towards scientific research expenses are charged to the Profit & Loss Account in the year in which the contribution is made. in carrying cost of investments other than temporary in nature.. • Cost includes inward freight. Fixed Assets and Depreciation : • Fixed assets are stated at carrying amount i. 6. Investments : Current investments are held at lower of cost and NAV/Market value. • Capital Subsidy received against fixed capital outlay is deducted from gross value of individual fixed assets.. the Company has provided liability accruing on account of deferred entitlement towards LTC in the year in which the employees concerned render their services. • Depreciation on Fixed Assets have been provided on straight line method at rates specified in Schedule XIV of the Companies Act except for part of 5/1 Unit Sahibabad.Accounting Policies & Notes to Accounts Annexed to and forming part of the Accounts for the year ended March 31. if any.. redundance & un-usability at the year end..... being the difference between the book value and recoverable value of relevant assets. Impairment /discarding of assets : The company identifies impairable fixed assets based on cash generating unit concept for tangible fixed assets and asset specific concept for intangible fixed assets at the year-end in term of clause 5 to 13 of AS –28 and clause 83 of AS.

Defined Benefit Plans : • Leave Salary of employees on the basis of actuarial valuation as per AS 15 (revised). • Impact of exchange fluctuation is separately disclosed in notes to accounts. Contingent Liabilities : Disputed liabilities and claims against the company including claims raised by fiscal authorities (e. is charged to revenue in the year of payment.g. • Gratuity Liability on the basis of actuarial valuation as per AS 15 (revised) B. Gain / Loss arising on account of rise or fall in overseas currencies vis-a-vis reporting currency between the date of transaction and that of payment is charged to Profit & Loss Account. is accounted for in the Profit & Loss Account. Recognition of Income and expenses : • Sales and purchases are accounted for on the basis of passing of title to the goods. 13. subject to the consideration of prudence. • Provident fund & ESI on the basis of actual liability accrued and paid to trust / authority. 10. • Post separation benefits of directors. • With the exercise of option and consequent issue of equity share. present obligation as a result of past event with possibility of outflow of resources. • Receivables/payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end date and the resultant gain or loss. However. corresponding ESOP outstanding is transferred to share premium account. Excise etc. on timing differences being the difference between taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent years.(All amounts in Indian Rupees in lacs. 12. • Increase / decrease in foreign currency loan on account of exchange fluctuation are debited / credited to profit and loss account. VRS. • Employees contribution for the nominal value of share in respect to option granted to employees of subsidiary company is being reimbursed by subsidiary companies to holding company. which is of the nature of long term benefit. Income Tax & Deferred Taxation : The liability of company on account of income tax is estimated considering the provisions of the Income Tax Act . except share data) 8. 9. • All items of incomes and expenses have been accounted for on accrual basis except for those income stipulated for recognition on realization basis on the ground of uncertainty under AS –9 issued by ICAI. Income Tax. 108 . 1961. Employee Stock Option Purchase (ESOP) : Aggregate of quantum of option granted under the scheme in monetary term (net of consideration of issue to be paid in cash) in terms of intrinsic value has been shown as Employees Stock Option Scheme outstanding in Reserve and Surplus head of the Balance Sheet by way of debiting deferred Employee Compensation under ESOP as per guideline to the effect issued by SEBI. Deferred tax is recognized. 11. Defined Contribution Plans : • Liability for superannuation fund on the basis of the premium paid to insurance company in respect of employees covered under Superannuation Fund Policy. Retirement Benefits : Liabilities in respect of retirement benefits to employees are provided for as follows :A. Foreign Currency Translation : • Transaction in foreign currencies are recognized at rate of overseas currency ruling on the date of transactions. • Sales comprise of sale price of goods including excise duty but exclude trade discount and sales tax / VAT. pending in appeal/court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts. when reliably estimable. Sales Tax . is recognized in accounts.). on the basis of actuarial valuation as per AS 15 (revised). C . if paid.

Rudrapur Plant.46.. which was also decided against the Company. the recovery proceedings have been initiated by the Company against Sharda Boiron Laboratories Limited for Rs.. in respect of excise duty demand of Rs..00 % per annum.26 7884.72 Loans and Advances include Rs.64 (Previous year Rs. company has assessed recoverable value of each cash generating units (CGUs) and each intangible assets based on value-in-use method.. Miscellaneous Expenditure : • Technical know-how fee paid to Technical Collaborators upto 31.e the average interest rate of external borrowing plus risk factor @ 2.....67) vi.64) paid by the Company to Excise authorities on behalf of Sharda Boiron Laboratories Limited. pursuant to the decision of Hon’ble Supreme Court in this regard.6595. Ghaziabad. except share data) 14.. 1049.21. • Deferred Employees Compensation under ESOP is amortized on straight line basis over vesting period. now known as SBL Limited. 2008 Cost/Revalued Written Down 2. CGUs include Narenderpur Plant. against the Company and Sharda Boiron Laboratories Limited... The Hon’ble Supreme Court of India had concurred with the order of the District Excise Officer.. Subsequent expenses are charged to revenue in the year of incurrence.. During the year 1991-92 the company had received a refund of Rs. 67.79 (previous year Rs.16 (previous year Rs. 10736. Alwar Plant.94) – Net of advance Rs.. c..32 (previous year Rs. Ghaziabad. Sahibabad Plant. (c) Estimated Amount of contract remaining to be executed on capital Account Rs..41 5969. 2135.. b. In respect of Bank Guarantees executed Rs 1850. 211.. Pitampur Plant.48.2004 is amortized on straight line basis over a period of six years. 270.. Newai Plant and Jalpaiguri Plant.50% i.. The Company had filed the review petition before Division Bench of the Hon’ble Supreme Court of India. along with interest demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities. 821.48. B : NOTES TO ACCOUNTS 1.03.25 8556. In respect of Corporate Guarantees given by the Company Rs. 4527. Further to para A(3) above.50) iii. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the Company and as per the terms and conditions of the contract executed with them. 457.. vii.64 by invoking the arbitration clause. In respect of Income tax under appeal Rs.1731. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs. 0..77 (previous year Rs. Building constructed on leasehold land included in the value of building shown in Fixed Assets Schedule: As at March 31.. 759... 3064... 591.44) viii.77 (previous year Rs.63) iv. a. 464. Jammu Plants.52) ii.48) (b) Bills discounted Rs. 41.. 4.77 (previous year Rs.27 (previous year Rs.98 (previous year Rs.46.48.68. Kanpur Plant. 655. In respect of excise duty disputes pending with various judicial authorities Rs. Necessary adjustments in respect of recovery/refund will be made as per the arbitration proceedings. • Share issue expenses are charged to revenue in the year of its occurrence.13 raised by the District Excise Officer... The balance amount of Rs.. 12..81 (previous year Rs. 2009 As at March 31. Baddi Plants.. In respect of letters of credit Rs.5953..5. In respect of claims by employees Rs. Such assessment indicated the value in use of corresponding assets being higher than corresponding carrying assets thereby ruling out the cause of further arriving at their net-selling-price and exigency of provision against impairment loss. In respect of civil suits filed against the company Rs. The matter is pending before Hon’ble High Court of Delhi for the appointment of an arbitrator.42).25) v. In respect of Sales Tax under appeal Rs.. Contingent Liabilities /Capital Contract : (a) Claims against the company not acknowledged as debts: i. Silvasa Plants. 3.25) 109 .39 (previous year Rs.39).84 (previous year Rs.. Annual discount rate considered for arriving at value-in-use of assets of each CGUs is 6.95. 6683..

39 635.03.74 1.46 IInd appeal filed Filed review application with High Court Appeal filed before the D.06 98. are expected to be in succeeding financial year.64 1603.2008 Value 0.29 27.41 47.06 6A.79 .08 % 0.08 0.71 1985.00 17.(All amounts in Indian Rupees in lacs.C.39 .12 2285.98 99.29 27.68 Forum where the dispute is pending VAT Sales Tax Sales Tax Sales Tax Entry Tax Sales Tax Sales Tax Excise Excise Short payment of VAT 62. if mature.64 Classification of Lal dant Manjan 24.00 0. 31-03-2009 248.00 0.88 33460.00 0.00 0.2008 Value 442.00 100.57 % 0. stores and spares parts consumed : Raw Material 31.Export sales at FOB 6D.92 10987.00 0. Stores & Sapres 31.00 100.00 30.2009 Value 45.00 0.61 29406.13 399.Professional & Consultation Fees . 2003 on demerger of Pharmaceutical Division of the company to Dabur Pharma Limited .78 28.03.02 100.86 44872.86 100.00 0. except share data) (d) Information pursuant to AS 29 issued by ICAI: Brief particulars of provisions on disputed liabilities :Nature of Liability Particular of dispute Opening Liability Provision made during the year 0.35 1571.63 % 1.99 56191.Capital Goods 6C. (iii) Company presumes remote risk possibility of further cash outflow pertaining to contingent liabilities listed in para 4 (a) and (b) above.00 0.69 33414. Expenditure in Foreign Currency 6E.00 31.89 3.56 % 0.21 38. Net Dividend remitted in foreign currency 2007-08 Final Dividend to 87 Shareholders on 253500 Shares 2008-09 Interim Dividend to 87 Shareholders on 251500 Shares 110 2008-09 1.Raw Materials .78 28.47 29407.00 0.03.00 62.Others (Travellling.74 1.60 0.55 54.32 Classification of Gulabari Exemption forms from dealers Entry tax on car Classification of Hajmola Candy Tax Paid purchase Classificiation of Saunf ka Ark Capital Goods removal 0.00 0. Earning in Foreign Exchange: .90 1.64 56794.02 9410.00 162.18 14.00 0.00 Packing Material.94 100.00 17.00 0.03. (ii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.C.2009 Value Imported Indigenious Total 602.00 0.32 0. Value of raw materials.43 286.08 0. Conveyance & Administration) 6B.00 0.39 31-03-2008 110. Appeal Appeal pending before D.00 2007-08 2.60 17.22 Provision Closing adjusted Provision during the year 0.06 2. Pursuant to approval by Hon’ble High Court Delhi of company’s application for modification of order dated Oct 17.70 45315. Appeal IInd appeal filed before D.C.00 31.14 99.22 175. the company has inherited the land against payment of requisite consideration money during the year. to the effect of transfer of land worth Rs 184 in favour of the company from the demerged entity due to refusal of HUDA to accord status of inheritance of said property to Dabur Pharma Ltd.Stores & Spares (Including packing material) .64 24.00 30. 5.00 0. Appeal pending before S T Appellate Pending before High Court DC Appeal (i) Resulting outflows against above liabilities pending before Sales Tax DC/Tribunal/CCT’s.80 165. CIF Value of Imports: .22 30.

04 (6634.56 (736.01 (30073.14) 244.39 (1197.59 (689.19) 6810.82 (4570.73 (11111.07 (6332.10) 34330.98 2586.77 (8558...02) 15172.19 (2997.40) 7811.69) 20696.32 (297..57) 287.15 (249.27) 11688.76 736.16 (858.75 (28404.13) 10455.03 (17947.58 (244.76 (390.80) 364...67 (270.32) 13979.80 (322..94) 1234.79) Value 50483.. Value 755.55 (31491.71) In view of variable quantitative denomination pertaining to various item of raw material and packing material.21) 1197..21 (177..16) 229..Nector & Drinks Vegetable Pastes Others Total Unit Kilo-ltrs Tonnes Tonnes Tonnes Tonnes Kilo-ltrs Kilo-ltrs Mt Licenced Capacity Installed Capacity 51480.. above in quantitative terms has not been given..53) 739.29) 6467.63 (45315.76) 249.21) 225.51 69.94 (179.63 (1031.39 (755.91) 5954.80 (2388.45 (5375..23) 6954.15) 600.55 (687. 23115..27 Unit Tonnes Tonnes Tonnes Tonnes Assorted Quantity 17641.25 (1044.95 (4856. Pcs.20 (20050.in Lacs...60) 1308.76 (626.52) Sale Qty.58) 19430.74 (59138.00 (22000.76) Opening Stock Qty.78 (174584.87) Value 3109.59) 56794.35) 270.49) 297...57) 689.05) 9050.. 22805.09) 12251.42) 201135.54 (257.18 92.63 (14955. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs.00) 27572.. except share data) 7A.69) 4339..93) 22379.22 (16940..02) 1044.26 (6246..80) 6209.57) 196.03) 20622.18) 121.62) 10996..00 (6000. Value 1066.90 (2586.68 (19807.31 (1308..00 (12000.02 (6296.58) 13741..45) 111 . Jari Booti & Raw Madhu Chemicals & Perfumery Compounds Others Raw Materials Total raw materials Packing Material :Glass Containers Plastic Containers/Caps/Jar Printed Packing Materials Laminates & Lamitubes Other Packing Materials Total packing materials Consumption is net of inventories written down as follows :Raw Material Packing Material Value 92..in Lacs..51) 122.89 (563.61 (31487.83 (92..95 (4896.96 (188.83 (639.51 (9912..54) 32970.63 (18033.62 (7264.49 (14048.92 (999.89) 4042..61 (7148..57) 571.64) 5271.63) 32418.87) 2925. Particulars of consumption of important raw and packing materials Class of goods Raw material :Sugar and Molases Vegetables Oils Herbs.06) 63659.00) 12000.58) Closing Stock Qty.74) 442.68 (6209.Arishta Fruits.74 (876.57 (5771.28 (14203.96) 526..68 (5125.00 (51480.81 (5309.14 (6509. Particulars in respect of goods manufactured Class of Goods Hair Oils Chyawanprash Honey Tooth Powder & Paste Hajmola Asava .56) Pcs.81) 7613.35 (436.81) 18783.18) 436.28 (16050.79) 710..03) 563.11 (10661.28 (526.72 (10649..06 147.36 (739.92) 674.76) 1007.56) 5392.52 (6316.57) 5639.00 (45099.57 (243. 7B.17 (69.28) 14016.20) 6836.56 (515.55) 262.72 (37569.98) 16419.00) 6000.36) 1043.96) 1080.78 (18482.85 (9595.00) 45099..57 (281.00) 22000. Assorted Assorted Assorted 1041.98) 3017.99) 5344.00 4080.00 Production Qty.23) 390.00) 6000.17) 15018.00 (6000.96 (2433.

33) 1682.33 (172.86 647.70) 35348.91 346.25 (532.11 1.57 (802.92 1.41 247.85) 3327.17 (105.19 43. Nectar & Drinks Vegetable Pastes Others Total (b) Grand Total (a+b) Qty tonnes 324.05 174. 297.23) Opening Stock Qty.36 (300.17 19.71 Value 36.31 under stock option Scheme) 232. to the Directors: 31.28 32.95) 300.54) 11209.54 8A.79 29.09) Write down of inventories :Class of goods MANUFACTURED GOODS (a) Hair Oils Chyawanprash Honey Tooth Powder & Paste Hajmola Asava-Arishta Fruit.04) 385.53) 3967.91) 141.19 599.09 88.75) 7400.74 (73.98 (30131.29) 2193.74) 191.59 (818.79 22.44) Value 156.03 2.04 (236.80 0.523.06) 3484.92 563.52 (16692. Value 75.22 (131.59 (7761.69) 41232.28) 40.73) 2867. Write down of inventory in monetary term aggregate Rs.(All amounts in Indian Rupees in lacs.10 (1981.683.66 131.33 (588.40 (9.66 (253.50 23.48) 4530.79 106.38) 746.00) 12518.910.74 3.87 (23.12 181.03 (11.15 31.74 910.87 112 .63 (141.57 (29417.72) 743.69 2.98 6.94 29.83 (743.41 3.55 4.38) 36918.96) 678.20) 131.92 (7809.20 27.95 780.57) 105.57) 3008.11 (6092.03.27) 250.83 (386103.79) 31.849.12 Previous year Rs.41) Note : Production / Purchase are net of stock written down.95) 31684.834.22 (350.41 (647. except share data) 7C.40) 1957.39 (632.98 (1682.86 (7524.03 (70.41 (397.47 34.87) 18112.03.72 (4105.14 1219.48 245.54 (2993.33 15.66) 307. 287.03) 5857. 71.95 139.49 131.2008 219. Value 27.Nectar& Drinks Vegitable Pastes Others Total (a) TRADED GOODS (b) Hair Oils Tooth Powder & Paste Hajmola Fruit.67 8.29) Closing Stock Qty.98 172.25) 6543.07 1138.79 (22.87 (151.83 (355972.38 (3133.41 683. Value 23.2009 Salary Commission (as computed below) Contribution to Provident Fund Residential Accommodation Medical & Leave Travel Benefit Contribution to Superannuation Fund Others (Including Rs.81 3.42) Sale Qty.31) 4580.00 27.23) 570.42 (1448.56 268.03) 182. Managerial Remuneration under section 198 of the Companies Act.92) 14118.11 (37194.79 (705.45) 151.20 (12509.85 135.56 (32.90 0.Nector & Drinks Vegetable Pastes Others Total Unit Kilo-ltrs Tonnes Tonnes Kilo-ltrs Mt Purchases Qty.141. 1956 paid or payable during the year.533. Particulars in respect of traded goods Class of Goods Hair Oils Tooth Powder & Paste Hajmola Fruits.14 (5092.27 (233.54 (Previous year Rs.86) 546.43) 105.58 9.78 115.44 12.60 6.33 56.81 86.

.29 Maximum permissible remuneration 4891.2009 31....23 4167.03..49 respectively.e. keeping in view the generally accepted accounting practice...2009 1000. 1st October 2008.71 Less: Capital Profit 0. Pradip Burman...572. The company has filed a claim for compensation of Rs.. D.13 -47..f.1956 and calculation of Director’s commission 31..47 676..83 209.60 and Rs.59 Add: Managerial remuneration 1219. Current Service Cost Interest Cost Expected Return on Plan Assets Accumulated Loss/ Gain Total Expenses recognized during the year (A+B+C+D+E) 562..7.81 37885.82 257..12 Provision for doubt full debts 737.83 113 .15 1138..06 329. a whole time director..36 20... Amount foregone on account of salary and service benefits work out to Rs. New Delhi Previous Year Balance as on 31...P..49 295.38 Maximum commission payable: 444.00 - 10.65 378.00 91.23 37. Employee related Dues : A. The company’s freehold land situated at Sahibabad measuring about 7.00 Adjusted net profit 44465. B.14 42.03.95 40. C. (a) Defined Benefit Plan Information pursuant to AS –15 (revised) issued by ICAI :(a) Expenses recognized during the period Particulars Gratuity Leave Salary Post Separation (funded) (funded) benefits of director (un-funded) 231.19 289.03. except share data) Computation of net profit in accordance with Section 198 and section 309 (5) of the Companies Act. Particulars of Balances with Non-Scheduled Banks: Current Year Barclay Bank..2008 Profit for the year before tax as per Profit & Loss Account 42499...20 11. Government under Land Acquisition Act and the State Government had allotted and given possession of about 4.19 152. voluntarily has foregone his salary and part of service benefits w.42 before the Office of Special Land Acquisition Officer.03 -26.50 Total A..72 acres of land on lease to the Company in lieu of acquired land.54 0. However.00 176..81 -116. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs...37.59 36517.87 Directors fees 10.75 526. Ghaziabad against the land so acquired. 9.79 8B.03 193. E..85 Actual commission (To one non whole-time Director) NIL 27.. the same claim has not been considered in the books of accounts.00 Maximum Balance during the year 1000.... Mr. 11.58 acres was acquired by U.24 1214...

81 Total 7642.00 0. APP . II.95 40.49 295.50% 7.13 176.1887.03.03. H I.43 967.39 231.81 53.06 13. Actuarial Assumption : Discount rate Estimated rate of return on plan assets Salary escalation ratio inflation Method 6. VI.55 562.55 91.36 -116. 114 .47. two erstwhile directors and spouse of one late director (All belonging to promoters group) relinquishing their dues from company on account of salary.00 0.06 -151.80 Post Separation benefits of director (un-funded) 0. Reconciliation of opening & closing balances of obligations Particulars Gratuity (funded) I.40 -152.25 D.00 275.43 2411.(All amounts in Indian Rupees in lacs.75 526.03.00 289. Fair Value of Plan Assets as on 01.16 42. G.99 47.641.59 335.04 152. III.00 -78.47 -2000. Investment detail of plan assets as on 31. VI VII.2008 Past service cost Current service cost Interest cost Actuarial Gain / (Loss) Settlement Obligation as on 31.87 Change in Plan Assets (Reconciliation of opening and closing balances) Particulars Gratuity (funded) I.04.50 3616. IV.24 -2304.52 6632.39 -304.02 1303.69 105.00 0.00 0.24 and decline in deferred tax assets by Rs. GS 20% Director .83 -152. OS – 12% and SM.00 0.50% 10. II. The basis used for determination of expected rate of return is average return on long term investment in Government bonds. C.2008 Expected Return on Plan Assets Actuarial Gain / (Loss) Employer Contribution Settlement Fair Value of Plan Assets as on 31.80 0.03 193. employees turnover at FS 20% . V VI.2009 100% in reimbursement right from insurance company for fund managed by it E.70 58. MS .35 Leave Salary (funded) 460.24 with corresponding rise in general reserve by Rs.2009 929.00 0. The estimate of future salary increase take in-to account regular increment.6% and normal retirement age at 58.81 485.04. promotional increases and Inflationary consequence over price index. V. except share data) B.1887.81 209.00% Projected unit credit method F.99 -151. liability on account of post separation benefits of directors is reduced by Rs.00 -78. house rent and monthly pension right (to the extent applicable to them) with effect from 1st October 2008.2009 2241. III.71 Post Separation benefits of director (un-funded) 4940.59 604.23 37.00 Total 1095. Obligation as on 01. Consequent upon one whole time director.45 Leave Salary (funded) 165. Demographics assumptions take in to account mortality factor as per LIC (1994-96) ultimate criteria.

B.. Nepal . (iv) Things stated as above entailed modification of figure of annual accretion of gratuity and leave salary which have been adjusted against corresponding actuarial gain/ loss.. The company has also considered the settlement amount as per advice of insurance company.18.... Ltd.(Foreign Wholly Owned Subsidiary) Dabur International Ltd... the company has carried the closing value of planned assets in terms of return from insurance company.....(Foreign Wholly Owned Subsidiary) Dabur (UK) Ltd. Ltd..13. Related party Disclosures Related party disclosures as required under AS 18 issued by the Institute of Chartered Accountants of India are given below: (a) Related parties where control exists :H & B Stores Limited ...(Foreign Subsidiary) African Consumercare Limited.39 and Rs. (i) There has been rise in opening liabilities towards gratuity and leave salary by Rs..98 261. Egypt .40...16 respectively against past service cost relating to period before 01..(Foreign Subsidiary) Dabur Egypt Ltd.. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs. Nigeria .16 300.82 12A.D. Narang 3) Sunil Duggal (II) Relative of key management personnel: Asha Burman 115 .(Foreign Subsidiary ) Dabur Nepal Pvt.. Other related parties in transaction with the company (I) Key management personnel: (whole time directors) 1) Pradip Burman 2) P. UAE ... Pakistan . Defined Contribution Plan :Company’s contribution to different defined contribution plans :Particulars Provident Fund Employees State Insurance Employees Superannuation Fund 2008-09 552. except share data) J..(Foreign Wholly Owned Subsidiary) WeikField International (UAE) .(Domestic Wholly Owned Subsidiary) Asian Consumercare Pvt. Ltd..(Foreign Subsidiary) Naturelle LLC. UAE ..43 2007-08 562.. the value of obligation and planned assets have been carried in terms of valuation of actuary and insurance company respectively.. UK ......63 52..20 with corresponding rise in general reserve. (iii) Considering aforesaid facts.. This also led to decline in deferred tax liability by Rs. Company has treated the difference in past service cost instead of changing the opening balance and adjusted this segment of cost with opening general reserve... (ii) Due to difference between return from actuary and that of insurance company in respect of figure of settlement of employees claim during the year.(Foreign Wholly Owned Subsidiary) (b) (c) Joint venture:.2007 because of certain changes in actuarial assumption in recognition of genuine exigencies during the course of valuation for current year. Dhaka ..(Foreign Wholly Owned Subsidiary) Asian Consumercare Pakistan Pvt.04.Forum 1 Aviation Limited....56 55...

net of exchange gain Rs 793.61) (-) (-) 287. Ratna Commercial Enterprises Pvt Ltd 2.00 (-) 326.12 (297.28) 59.24 (32.00 (2. Welltime Housing and Finance Pvt Ltd (V) Entreprise that have a member of Key Management in common 1.00 (-) (-) (-) (92.64 (3./Pension (-) Royalty 32.36 (47.2009 Subsidiary Particulars Purchases of Goods Sale of Goods Equity Conribution Loan Given Rent Paid Security Deposit General Expenses Repayment of Loans Given(Instl.10) 3.10 (436.50) 77.25 (-) (-) (-) 714.Recd) 17.15 (741.200.42).272.35) 1.448.00 (6.87) (-) (-) (-) (-) (-) 872.25 (-) 872.10) 3.00) (-) (-) (-) (-) (-) (-) 17. Dabur Invest Corp 2.92) which has been debited to Profit & Loss Account.84 (-) (-) (-) 2. Ratna Commercial Enterprises Pvt.09) 759.00) (1.944.06 (16.(All amounts in Indian Rupees in lacs.00) (-) 38.28) (-) (-) (-) Joint Ventures (-) (-) 456. Southern Enterprises 12B.944.31) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) Total Outstanding As on 31.67) 13.67 (462.366. Exchange loss works out to Rs 210.14 (-) (-) (-) 38. 236.944.67 (462.87) 38.00 (-) 326.50) 100.00 (2.28) (-) 2.200.44) (-) (-) (-) (-) (-) (-) (-) (-) 3.860.665.49) (-) (-) 32. 40.35 (3.03.28) Interest Recd on Loans Given (92. 4.2009 1.06 (16.02 (-) 6.40 (Previous year Rs.49) Interest Recd on Security Deposit (-) Remuneration/Exg.288.44) 331.61) 32.950.486. except share data) (III) Entities over which Key Management Personnel are able to exercise significant influence: 1. Dabur GI Invest Corp 3. Chowdhry Associates 3. Ltd. Welltime Housing and Finance Pvt Ltd 2.02 (-) Guarantees & collaterals given 5.274. Related Party Transactions as on 31.36 (329.48 ( Previous Year Rs.00 (2.14 (2.48 (2.29 (-) (-) Associates Key Relatives of Key Management Management Personnel Personnel (-) (-) (-) (-) 59.272.44) Employee Stock Option Scheme 44.574.48 (2.35) 2.02 (-) 6. Narang Management Consultant Pvt Ltd (IV) An enterprise owned by any Director of DIL 1.288.00) (1.98) (2.174.272.03. 116 .406.574.00 (80.84 (-) 3.486.174.36 (47.64 (3.366.

1 per share) Basic Diluted 17. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs. 117 .74 and Rs 31.58) Later than 5 year 0. lease period not exceeding five years in respect of any arrangement..15 (previous year Rs.17) Later than 1 year not later than 5 year 96.63 respectively paid during the year.. 15..15 respectively paid during the year.00 (0.25 (17...53 (Previous year Rs. b. 16.77 (37.... a. Figures in brackets are for previous year.61) 29... 04 FMCG 33 (33) 4 (4) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) MSY Unit Baddi Nov.15.37.... 2000 FMCG 28 (28) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 2008-2009 37355.80) Irrevocable lease agreement relates to flat & vehicle.164. Pension and other perquisites of retired director Rs.21 863635509 869063210 3.00 (0...75 and Rs 7. Pension and other perquisites to relative of deceased director Rs.. Part of fixed assets belonging to discontinued operations under reference have been used for new plants set up in relevant premises.66 3.. II.....72) 41..30 2007-2008 31677... Earnings per Share has been computed as under: Profit after Tax Weighted average number of shares outstanding Basic Diluted Earning per Share (face value Re..89 (9.82 ) being dues to subsidiaries..27 864907642 869156259 4. Information pursuant to AS 24 on discontinued operations: Particulars 1 2 3 4 5 6 7 8 Discontinued since Segment .. the unit relates to in financial statement Carrying amount of total assets Carrying amount of total liabilities Profit from ordinary activities Income Tax expenses Gain on disposal of assets Cash flow from discontinued operations: Operating activities Investing Activities Financial Activities Hair Oil Baddi March.58. except share data) 14...41...00) 0..32 4.10 (58... Sundry Creditors include Rs 1448.64 Note : I. 18...00 ) b) c) Lease rent debited to Profit & Loss account of the year Rs. Such assets have been left out of the purview of ‘3’ of above table. Information (to the extent applicable) pursuant to AS 19 issued by ICAI a) The future minimum lease payment under non-cancelable operating lease :Not Later than 1 year Building & Machine Cars 31.

76 and Rs. Rs. as advance against shares of Fem Care Pharma Ltd. (d) Company’s commitment towards revenue expenditure of the JCE amounting to Rs. 1997. Investment in Joint Venture (Information pursuant to AS-27 issued by ICAI) :(a) The company has become a party to an agreement among seven parties as on 1. Debtors includes Rs. (b) Share of the company in assets.47 crore in terms of aggregate of consideration money in pursuance of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations. Said amount (Rs.(All amounts in Indian Rupees in lacs.286. (FEM.203.728.10 (Previos year Rs. except share data) 19. Consequent upon signing of aforesaid agreement. a domestic jointly controlled corporate entity (JCE) with part of its operation akin to jointly controlled operation.73 crore subject to approval of transfer by appropriate authorities. unless realized in cash. 20.21 respectively in respect of year under audit as per un-audited accounts of the JCE. 759.35. beneficial interest thereon accruing in favour of transferor of shares. 326. net worth and income and expenses not being allocated for herein for worked out to Rs. the company has submitted letter of offer to SEBI for acquisition of upto 20% of issued and subscribed share capital of FEM from the public shareholders of FEM.28%. 436.290. at a consideration of Rs. a domestic listed company) for acquisition of their shares (72.456) appears under investment head in balance sheet of the company. the consideration amount has been retained by the company in an escrow account specifically designated for the purpose appearing in investment schedule. The contributions of venturers are towards capital build up of the JCE and periodic contribution towards cost of maintenance of air craft.800 per share not exceeding Rs.21. has entered into an agreement with shareholders collectively holding controlling stake in Fem Care Pharma Ltd.1242. Interest as on 31. The company during the year. Variable component of cost of maintenance is borne by user of the aircraft in proportion to their actual usage and fixed component is shared by all the ventures in proportion to their capital contribution.84 has been charged to profit and loss account under the head general charges.72.8.2009 accruing on escrow account amounting to Rs.2008 for controlling the management of Forum 1 Aviation Limited. 21. Rs. (c ) Stake of the company in terms of percentage of total subscribed and paid up capital of JCE is 14. 118 .5. In addition to consideration money the company has so far incurred Rs.20. Pending completion of transfer of shares. Rs.1. the main object of the JCE being maintenance of aircraft for use of venturers or otherwise. is recognized in this standalone account.81 crore lying in bank has not been accounted for by the company on account of absence of beneficial right there on.50) being due from subsidiaries.15% of total share capital subscribed and paid up therein) at a consideration of Rs. The participation of the venturers in the affairs of the management of the JCE is through representation in the composition of Board of Directors as agreed in shareholder’s agreement. outside liability. 56.03. (e) No income from said investment.12 crore towards cost of proposed acquisition. Consent of SEBI in this regard is still pending.

.166 3.599 51.641 131 219 -25..368 63..969 114.834 1.314 As on 31/03/08 As on 31/03/09 As on 31/03/08 46..126 51..641 131 219 -19..144 -23..099 – 52.969 – 51.592 – 31.812 169 – – 69.099 – 52.368 – 242.586 – – – 895 – 33....315 – 17.593 4.295 175 – 5.451 – 33.927 31..144 3.189 – 26.456 48.193 61.586 – 895 7.594 5.451 – – – 33.837 6.627 – 7. Information pursuant to AS ..17 issued by ICAI Consumer Care Business Consumer Health Business SEGMENT REPORT Foods Current Year 29.575 567 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Others Unallocated Dabur India Ltd.527 121.149 19.641 – 131 – 219 – – 19.054 – 9.879 – Previous Year Current Year Previous Year Revenue External Sales Inter-segment Sales Total revenue Result Segment Result Unallocated Corporate Expenses Operating Profit Interest Expense (Net of Interest Income) Income Tax (Current + Deferred) Profit From Ordinary Activities Exceptional Item Net Profit Other Information Segment Assets Unallocated Corporate Assets Total Assets Segment Liabilities Unallocated Corporate Liabilities Total Liabilities (All amounts in Indian Rupees in lacs.298 180 – 64 – 64 2.809 – 184.793 – – – – – – 1.641 131 219 – – – 3.258 – 242.592 As on 31/03/08 52.419 164 – 7.700 46.840 – – – 8.594 5.593 4...166 3.356 As on 31/03/09 51..458 72.840 314 – 6.696 21.126 62.594 5.809 52.117 – 6.356 – 37. except share data) Capiltal Employed Depreciation Non-cash expenses other than depreciation ..071 884 394 – -23.779 55.843 830 567 37... Current Year 184.577 – – 26...326 As on 31/03/09 8.781 37.295 6.879 161.411 – 48.527 – 48.876 – – – 3.793 As on 31/03/09 2..326 – – 5..927 3..527 69.373 855 4.627 7.099 As on 31/03/09 33.700 – 161.298 As on 31/03/08 As on 31/03/09 As on 31/03/08 3..232 – 17.054 3.334 5.326 – 5..456 21.593 4.562 – -25..456 48.295 6.315 43.700 – – – 46.742 394 29.969 61.314 – – – 33...069 5.126 10.112 295 – 3.258 5.700 – – – – – – 46.069 – 5.781 26. Dabur India Limited | Annual Report 2008-09 Financials 119 .884 69.955 2.779 – 211.696 – 21..837 6..562 As on 31/03/08 – 61.593 – 4.251 1.781 855 4..451 1.876 – 2.154 17.437 2..334 5.298 – – 9.326 – 5.840 – 8.099 – – 52.594 – 5.162 11.232 17.22.315 -17....725 51.577 – – – – – 211.

D. As per our report of even date attached For G. BASU & CO. except share data) 23.(All amounts in Indian Rupees in lacs. Jain GM (Finance) & Company Secretary 120 . Signatures to the Schedules “A” to “P” Annexed to and forming part of the Accounts. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd.K. Anand Burman P. Figures for the previous year have been rearranged/regrouped as and where necessary in terms of current year’s grouping. Narang Sunil Duggal Chairman Whole time Director Whole time Director A. Dr. Chartered Accountants S.

.. Registration Details Registration No L24230DL1975PLC007908 State Code : 31 03 2009 Date Month Year II Capital raised during the year (Amount in Rs...32 175% V Generic names of three Principal Products/Services of company (as per monetary terms) Item Code No..... Narang Sunil Duggal A.(ITC Code) Item Code No. except share data) 24... Thousand) Total Liabilities Total Assets 9076542 9076542 Sources of Funds Paid up capital Reserve & Surplus 865076 6516891 Secured Loans Unsecured Loans 82556 1307169 Deferred Tax Liaiblity 304850 Application of Funds Net Fixed Assets Investments 3600311 4368959 Net Current Assets Misc Expenditure 785555 86408 Deferred Tax Assets 235309 IV Performance of Company (Amount in Rs. Thousand) Turnover Total Expenditure 24392243 20142284 Profit/(Loss) Profit/(Loss) Before Tax After Tax 4249959 37355 Earning per share in Rs. Thousand) Public Issue Right Issue Nil Nil Bonus Issue Private Placement Nil Nil III Position of Mobilisation of Deployment of Funds (Amount in Rs...... Additional information as required under Part IV of Schedule VI of the Companies Act 1956: I.... Jain Chairman Whole time Director Whole time Director GM (Finance) & Company Secretary 121 . Chartered Accountants S......D.. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd. BASU & CO. Anand Burman P.. As per our report of even date attached For G.. Dividend Rate % 4....(ITC Code) 30049001 33059001 33061000 Product Description Product Description Product Description Ayurvedic Medicines Hair Oils Dentifrices Balance Sheet Date: 55 Signatures to the Schedules “A” to “P” Annexed to and forming part of the Accounts.. Dr... (ITC Code) Item Code No.. Dabur India Limited | Annual Report 2008-09 Financials (All amounts in Indian Rupees in lacs....K.

Consolidated Financial Statements 122 .

.. as well as.... and In the case of the consolidated cash flow statement. on a test basis. We report that the consolidated financial statements have been prepared by the Dabur India Ltd.. 2009... Dabur India Limited | Annual Report 2008-09 Consolidated Financials We have audited the attached consolidated balance sheet of Dabur India Limited group. as at 31st March. These financial statements are the responsibility of the Dabur India Limited’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. In the case of the consolidated profit and loss account. Rs 4. Lahiri Managing Partner Membership No 51517 Place : New Delhi Date : 29th April..... we are of the opinion that the attached 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 consolidated balance sheet. We believe that our audit provides a reasonable basis for our opinion.. of the profit of Dabur India Limited group for the year ended on that date...55 lacs and Rs 5. Based on our audit and to the best of our information and according to the explanations given to us. in accordance with an identified financial reporting frame work and are free of material misstatement. An audit includes examining. evidence supporting the amounts and disclosures in the financial statements.. We conducted our audit in accordance with the auditing standards generally accepted in India... in all material aspects. 2009 and also the consolidated profit and loss account and the consolidated cash flow statement for the year ended on that date annexed thereto. For G... of the state of affairs of Dabur India Ltd.. 2009 123 . BASU & CO. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are prepared. the parent company being one of the joint venturers therein...... Proportionate total net assets.A uditors’ Report The Board of Directors Dabur India Limited.’s management in accordance with the requirements of AS-21 on consolidated financial statement issued by the Institute of Chartered Accountants of India.. profit and net cash inflow amounting to Rs 514.. .. Our responsibility is to express an opinion on these financial statements based on our audit. a domestic jointly controlled corporate entity. Also consolidated herein on proportionate basis in application of AS-27 is the unaudited accounts of Forum I Aviation Limited. of the cash flows of Dabur India Ltd. evaluating the overall financial statement presentation.. Chartered Accountants S..37 lacs. group for the year ended on that date..48 lacs respectively of the jointly controlled corporate entity have been consolidated with this financial statement on the basis of accounts of said entity as certified by it’s management which has not been audited by us.. group as at 31st March. An audit also includes assessing the accounting principles used and significant estimates made by the management...

05 2.409.55 80.231.15 160.117.09 72.88 17.67 4.97 7.K.525.77 46.934.395.146.183.757. Narang Sunil Duggal Chairman Whole time Director Whole time Director P 108.51 55.146.650. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd.53 475.96 74.206.94 A B B2 8.77 8.400.42 14.565.048.32 32.D.390.40 26.00 9. 2009 (All amounts in Indian Rupees in lacs.656.727.165.37 95.89 3.97 73.47 29.35 864.94 IA EA 48.96 34.15 13.25 As at March 31.15 77.696.70 27.353.080.440.69 457. Anand Burman P. BASU & CO.851.68 1. 2009 As at March 31.902.52 2.916.87 14.876.546.966.50 108.248.880.22 30.229. Dr.253.640.842.55 24.27 G Eb H 37.876.371.193.93 81.00 74.08 45. except share data) Schedule SOURCES OF FUNDS : Shareholders’ Funds: (A) Share Capital (B) Reserves and Surplus Minority Interest Loan Funds: (A) Secured Loans (B) Unsecured Loans Deferred Tax Liability Total APPLICATION OF FUNDS : Fixed Assets : (A) Gross Block (B) Less : Depreciation (C) Net Block Investments Deferred Tax Assets Current Assets. Loans And Advances: (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Loans & Advances Less: Current Liabilities and Provisions (A) Liabilities (B) Provisions Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Notes to Accounts Total As per our report of even date attached For G.63 2. Chartered Accountants S.73 C D Eb 9.23 53.599.42 17.30 61.81 22.796.764.76 73.315.B alance Sheet as at March 31. Jain GM (Finance) & Company Secretary 124 .63 20.788.35 F 85. 2008 A.756.

642 869.679.320.907.86 3..11 4.68 111.45 0..03 280.00 43.650..77 44.917.397. Anand Burman P.19 75.68 55..270.19 68.05 6. 2009 283...713.480.53 4..68 4.94 240.99 62.277.76 1.37 4.410.. Narang Sunil Duggal Chairman Whole time Director Whole time Director A.53 7.46 1.34 285.484.31 40.22 6.83 863.826.507.28 1.101.P rofit & Loss Account for the year ended March 31.Final Corporate Tax on Interim Dividend Corporate Tax on Proposed Dividend Transferred to Capital Reserve Transferred to Legal Reserve Transferred to General Reserve Balance Carried over to Balance Sheet Earning Per Share (in Rs.41 3.628.71 33.930.09 665.17 1.45 K L M N O IB 137.21 43...89 566.58 33..106.87 -255... BASU & CO.426.485.543..68 2.480. Chartered Accountants S.74 19.617..46 4.469.376..55 -166..00 55. 2008 239.993..742.79 3..470.33 236.95 23.401....58 0.14 2.063.83 438.379.488. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd.522.. except share data) Schedule Year ended March 31.582.20 0..227.92 6..74 3..411.000.32 712..K.92 9..080.529 P Year ended March 31.27 239.58 3.35 8. Jain GM (Finance) & Company Secretary 125 .51 864. 2009 ..68 82.126.00 39.95 0..00 9... Dr.07 8.15 18.156.78 32.59 65.376..00 3.102.59 4.11 71.576.76 39.D.121.45 -40.05 33.807.080..000.101.759 868.40 201.45 39.31 38.65 1.643..868.491. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.444.684.539.73 -13.461 Income : Sales Less Returns Less : Excise Duty Net Sales Other Income Total Income J Expenditure : Cost of Materials Manufacturing Expenses Payments to and Provisions for Employees Selling and Administrative Expenses Financial Expenses Miscellaneous Expenditure Written Off Depreciation Total Expenditure Balance being Net Operating Profit before Tax Provision for Taxation – Current Provision for Taxation – Deferred Provision for Taxation – Fringe Benefit Net Profit after Taxation and before Extraordinary Item Credit Balance Trf From Merged Entity Net Profit after Tax and Extraordinary Item Minority Interest Net Profit after Minority Interest Balance Brought Forward Provision for Taxation for earlier year written back Provision for Taxation for earlier year Profit available for Appropriation Appropriation/Allocation Interim Divided Proposed Dividend .) Basic Diluted No of Shares Basic Diluted Notes to Accounts EB As per our report of even date attached For G.

208.039.244.170.635.203.471.699.58 3.484.59 1.95 8.53) 387.90) 46.12 2.S tatement of Cash Flow (Pursuant to AS-3 Issued by ICAI) (All amounts in Indian Rupees in lacs.91 7.307.00 2.13 1.022.298. except share data) Year ended March 31. Cash Flow from Investing Activities Purchase of Fixed Assets Sale of Fixed Assets Purchases of Investment including Investment in Subsidiaries Sale of Investments Cash Used(-)/(+)Generated for Investing Activities (B) (16.300.41 3.129.35 (295.51 B.248.38 40.41 44.46 44.51) 284.303. written off (Included in Director Remuneration) Interest Less: Interest received Profit on Sale of Investment Profit on Sale of Assets Operating Profit before Working Capital Changes Working Capital Changes Increase/(Decrease) in Inventories Increase/(Decrease) in Debtors Decrease/(Increase) in Trade Payables Increase/(Decrease) in Working Capital Cash Generated from Operating Activities Interest Paid Tax Paid Corporate Tax on Dividend Cash Used(-)/(+)Generated for Operating Activities (A) 2.87 7.03 (399.71 40.32 43.97 2.721.05 984.45 287.679.485. 2008 38.87 2.475.51 5.09 1.954. Cash Flow from Operating Activities Net Profit before Tax and Extraordinary Items Add: Depreciation Impairment Loss Loss on Sale of Fixed Assets Miscellenous Exp.641.453.84 438.83 7.339.643.00 198.444.26 24.83 0.16 1.48 538.12 328.68 4.28 8.234.47) 126 .94 258.03 (25.088.10 (10.897.39 1.815.694.25 50.40 0.44 52.320.14 9.37 3. written off Miscellenous Exp.067.858.63) 77.389.106.039.83 A.89 6.68 47.87 602.87) 3.92 38.33 32.32 (23. 2009 Year ended March 31.223.58) (2.772.34) (12.316.537.481.101.49 4.

..656...42 13.81 C. Dr. 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 Loan Payment of Dividend Cash Used(-)/+(Generated) in Financing Activities (C) Net Increase(+)/Decrease (-) in Cash and Cash Equivalents (A+B+C) Cash and Cash Equivalents Opening Balance Cash and Cash Equivalents Closing Balance 10... Anand Burman P.55 As per our report of even date attached For G...02) 1.795... Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.81 14. 2009 Year ended March 31..842.066..10 (12... 2008 11. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd. Chartered Accountants S. Narang Sunil Duggal Chairman Whole time Director Whole time Director A.656. BASU & CO.968..185..81 7..24) 68.39 (959.. Jain GM (Finance) & Company Secretary 127 ..21) (1.....K.90) (3....590.033. except share data) Year ended March 31.73) (183.D.00 6.42) 427..47) (12...322...53 (618...84 183.897..23 7.72 7.10) (6...647.

876.59 2.640.from Banks : 218.00 8.756. 3890.43 0.650.15 443.74 8.21 (137.Reserves and Surplus Capital Reserve Share Premium Account Exchange Fluctuation Reserve Employees Housing Reserve Fund General Reserve : Legal Reserve Profit and Loss Account Employee Stock Option Scheme Outstanding Total 1.Secured Loans I Term Loans (Other than Bank) : GE Capital Services Deferred Payment Credit PICUP under Trade Tax Loan Scheme Short Term Loans .99 2.44 107.44 69. except share data) As at March 31.78 11.117.640.689.77 202.12 9.76 14.392.69 475.1 each (Previous year 1450000000 Equity shares of Re.759.650.00 14.28 514.00 14.090.01 109.83 9.22 55.366. 11000 (Previous year Rs.00 160.Unsecured Loans Deposits : Directors Companies Security Deposit from Dealers and Others Other Loans (from Banks) Book Overdraft of Current Account with Banks Commercial Papers Total 48.00 (Previous year Rs.193.500.25 Schedules C .91 11.76 8.733.39 73.87 866.82 11.92 11.S chedules Annexed to and forming part of the Balance Sheet as at March 31.39 1. Nil) 128 . Maximum amount of commercial papers outstanding during the year Rs.172.23 Schedule B . 2008 Schedule A .23 8.05 Notes: 1.30 Schedule B2 . Loans include amounts due within one year Rs.500.51 53. 1 each) Total 14.00 9.78 43.116.58 3. 1 each) Issued and Subscribed: 865076249 Equity shares of Re.38 126.376.027.565.79 0.01 0. 1 each fully called up (Previous year-864022973 Equity shares of Re.91) 2.38 126.Minority Interest Share Capital Share Premium Capital Reserve General Reserve Profit & Loss Total 202. 2009 (All amounts in Indian Rupees in lacs.89 48.82 9.93 2.41 65. 2009 As at March 31.13 18.21 457.54 9.00 13. 2000.06) 530.Share Capital Authorised : 1450000000 Equity shares of Re.500.500.72 (55.15 II Schedule D .44 124.00 8.69 23.93 2.06) 529.229.91 64.18 230.13 0.713.00 117.000.

.03 5.67 Note : SME units as above means units registered as micro and small enterprises under Micro.73 115. Small & Medium Enterprises Development Act..764.47 2727.87 7.470.27 -255.41 238...508.27 1....238.43 1.34 296.14 48.55 80..17 42.Others Investor Education and Protection Fund to be Credited by : -unpaid Dividend -unpaid Matured Public Deposit -interest Accrued on Public Deposit B.Final For Corporate Tax on Proposed Dividend..165..Final For Liabilities Disputed For Gratuity For Others For Leave Salary For Housing.37 16.63 3. Schedule EB . Provisions : For Dividend (Proposed) .260.804.409.650.22 4.09 695.20 175..81 477..311.964...84 7.32 129 ..34 47.74 20. to the extent identified by the company.68 16.68 1.. 2008 Schedule EA ..47 278..23 2.329.68 27.193.698.76 1.79 12.184.99 35. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.65 45.88 419.. 2009 As at March 31.811. 2006.80 370.27 1.47 59.576.61 31...00 -623. except share data) As at March 31.73 6.89 33.29 215.527.599..940.400.206.353.96 2.799.23 (1.169.73 327.09 2..18 0.35 4.754.531.85 39....80 2.70 6. Bonus & Gratuity & Other Welfares For Taxation 4..97 73.50 19.17 1.66) -318.72 1...374..616.Deferred Tax Liabilities (Net) Deferred Tax Liaibility : Depreciation Less: Deferred Tax Assets : VRS Payment Other Disallowances Under Section 43B of Income Tax Act.048.101.. 1961 Provision For Contingent Liability Charged Service Benefits Provision for Doubtful Debt Net Deferred Tax Liability (Decrease)/Accretion in Deferred Tax Liability Less : Deferred Tax Liabilty/(Asset) inherited on Merger Less : Deferred Tax Assets Transferred to General Reserve Deferred Tax Liability provided during year 3..83 32.46 1...21 75.32 8.41 368.480..31 162.93 45.796..85 256.12 1.Current Liabilities and Provisions A Current Liabilities : Acceptance Creditors SME Units (Goods) Creditors for Goods Creditors for Expenses and Other Liabilities Advances from Customers Interest Accrued but not Due on Loans Deposits .

82 22.00 6.933.44 1.92 1.10 6.90 6.95 182.176.966.03.69 0.25 17.513.00 0.146.146.2008 For the year Transfer/ Adjustment Gross Block 31.44 1.47 26.35 2.84 549.916.40 23.060.103.91 0.2008 1.819.73 2.62 5.515.75 5.66 1.525.2009 As on 31.513.146.404.21 1.18 29.84 305.25 0.64 556.40 21.518.112.909.29 2.17 19.00 0.485.440.52 1.131.39 1.14 3.36 0.25 309.88 860.718.69 1.586.29 1.643.63 37.68 1.55 3.40 61.161.525.934.205.172.00 0.50 182.15 0.46 0.03.00 1.77 416.352.942.066.50 1.61 23.79 457.085.05 39.48 1.90 3.68 12.475.70 156.39 33.130 (All amounts in Indian Rupees in lacs.00 992.67 641.42 1.55 2.641.22 718.112.96 0.03.00 0.00 1.32 4.00 0.89 1.2009 As on 31. Roads & Culvert Plant & Machinery Vehicles Furniture & Off Equipment Computers Patents Live Stock Capital Work in Progress Goodwill Software Total Previous Year .55 85.27 255.102.933.56 9.00 634.76 17.00 0.22 0.851.00 2.005.00 0.999.66 20.22 4.62 8.77 4.916.16 12.19 10.054.77 0.69 942.843.73 2.064.556.74 1.25 747.25 2.00 0.213.063.93 0.651.608.24 72.51 26.555.498.44 1.138.00 0.00 73.96 46.71 2.40 155.645.97 0.44 9.537.723.86 10.86 263.64 17.00 0.22 4.579.80 2.00 0.02 Additions Transfer/ Adjustment Gross Block 31.22 5.960.540.91 693.961.434.2008 DEPRECIATION NET BLOCK Schedule-F Name of Asset Freehold Land Leasehold Land Building.440.367.472.00 0.03.26 55.146.807.58 549.29 72.654.128.434.066.71 64.04.92 14.27 4.00 1.01 0.73 1.00 0.04 46.87 555.46 1.997.87 0.00 0.21 477.46 4.83 854.90 79. except share data) GROSS BLOCK Opening 01.00 569.89 1.966.00 0.00 1.44 259.04.00 0.009.78 363.00 0.63 6.756.2009 Opening 01.44 0.

742.00 Birla Mutual Fund (Purchase during the year) Units 121112797.00 7 - 0..00 5 0.. 2009 As at March 31.570091 (Sold during the year) Units 19105976..527225 (Sold during the year) Units 136718053..625.00 29.131956 0..00 5.5186717 (Sold during the year) Units 37968346.75243 (Sold during the year) Units 172847455.196.....00 10 JPM Mutual Fund (Purchase during the year) Units 37968346.. except share data) Numbers (As on 31.150752 (Sold during the year) Units 121112797....572562 (Sold during the year) Units 558945792.336577 (Sold during the year) Units 187288554.00 0..00 2 - 0..53 0.464.57 2..036589 - 0.72 1.00 131 .00 13 Prudential Mutual Fund (Purchase during the year) Units 152950391...000.00 0.49 4...00 3 16..9261703 Lotus Liquid Fund (Purchase during the year) Units 153478044..76867636 LIC Mutual Fund (Purchase during the year) Units 547725682.8455878 TAURUS Mutual Fund (Purchase during the year) Units 1000000.00 1.00 0.00 0..00 0.00 0.00 8 - 0.923..500.000.00 500...00 6 - 0. 2008 Schedule G ..492204257 (Sold during the year) Units 790470.00 2....00 (Sold during the year) Units 1000000.03..847.410 Units representing one seventh of units) - 28...00 1.936912 12 Principal Mutual Fund (Purchase during the year) Units 166343795.150752 CHOLA Liquid Fund ..00 9 - 0.5657227 (Sold during the year) Units 34290031.Institutional Plus-Growth (Purchase during the year) Units 34290031.5657227 DSP Mutual Fund (Purchase during the year) Units 790470.882131 (Sold during the year) Units 158366825.Investment A Current Investments Quoted-other than Trade 1 Fidelity Cash Fund (Purchase during the year) Units 8771890.00 500.00 0..00 4 0..2009) As at March 31. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.5186717 11 Kotak Mahindra Mutual Fund (Purchase during the year) Units 172510038.100.492204257 ABN Amro Mutual Fund (Purchase during the year) Units 64267024.000.471306 (Purchased during the Year 220467.000.76867636 (Sold during the year) Units 8771890.936264 DWS Mutual Fund (Purchase during the year) Units 35302900.9262336 (Sold during the year) Units 78743495.

330.7025466 19 UTI Mutual Fund (Purchase during the year) Units 29865117.000.108742 (Sold during the year) Units 166847032.00 0.00 0.1800792 23 JM Mutual Fund (Purchase during the year) Units 80628387.402.3048918 (Sold during the year) Units 32237365.933 (Sold during the year) Units 315407.00 23.2009) As at March 31.00 0.712498 16 SCB Mutual Fund (Purchase during the year) Units 25665991.1800792 (Sold during the year) Units 30665991.00 1.00 - 0.3659848 24 ING Mutual Fund (Purchase during the year) Units 29303695.) 14 Reliance Liquid Fund (Purchase during the year) Units 148465721.1800792 17 Sundram Mutual Fund (Purchase during the year) Units 80811230.00 1.000.00 2.00 0. 2009 As at March 31.22618691 (Sold during the year) Units 3993474.000.090737 (Sold during the year) Units 102678288.00 - 0.508.7299512 (Sold during the year) Units 72668243.500.00 - 0.000.0331399 25 MIRAE Mutual Fund (Purchase during the year) Units 315407.60 2. 2008 Schedule G .89056 15 HSBC Mutual Fund (Purchase during the year) Units 39191924.771289 5.374922 (Sold during the year) Units 205644424.0504174 (Sold during the year) Units 64128014.500.00 12.7409119 20 HDFC Mutual Fund (Purchase during the year) Units 50028812.00 - 0.712498 (Sold during the year) Units 39191924.00 0.7434285 (Sold during the year) Units 59865117.00 132 .529.22618691 27 Canara Mutual Fund (Purchase during the year) Units 229047405.500.03.0349764 21 Templeton Mutual Fund (Purchase during the year) Units 102678288. except share data) Numbers (As on 31.00 500.00 300.00 - 0.00 500.094272 22 SBI Mutual Fund (Purchase during the year) Units 25665991.00 - 0.3619198 (Sold during the year) Units 82634827.00 2.0185951 18 TATA Mutual Fund (Purchase during the year) Units 56908798.00 500.980.(All amounts in Indian Rupees in lacs.00 - 0.00 1.88 - 2.500.00 0.00 - 0.00 3.000.3659011 (Sold during the year) Units 90628387.933 26 Edelweiss Mutual Fund (Purchase during the year) Units 3993474.00 - 0.00 0.1800792 (Sold during the year) Units 30665991.(Contd.

Current Assets.182.Other than Trade 1 Dabur Pharma Ltd (Sold during the year Shares 100000) II) Unquoted -equity shares .786.42 612.62 26.111.371... Power Finance Corporation of India 2.00 0.00 0. Power Finance Corporation of India 4. Schedule H .40 1...974. Treasury Bill C.2009) As at March 31..73 Notes : 1 All equity shares are fully paid up.19 6..24 745.40 612.03 0.477.Packing Materials.696.. Rural Electricfication Corporation of India Egyptian Govt.(Contd..505.00 1.518.83 551..00 0.Debts outstanding for a period exceeding six months : Considered Good Considered Doubtful Less : Provision for Doubtful Debts .723..00 250.484.Finished Goods Sundry Debtors (Unsecured) : .00 1....42 9..08 28..73 17.61 549.99 34.00 650.10 199.890.000.546.00 15.00 50.02 0. Ltd..788. 2009) 0.18 6..99 20. 2008 Schedule G .628.01 0.63 20.05 1.......74 3.11 11.. Super Bazar 6 National Saving Certificates 7 Kisan Vikas Patra 8 Saraswat Co-op Bank Ltd IV) Government Bonds (entirely purchased during the year)other than Trade 1.231.265.466..50 26.35 34.00 0.398.Other Debts (Considered Good) 11.88 28.00 50.477.18 17. Stores and Spares ..000.07 0.00 20..357.02 0.) B.00 30. 2 Provision for dimunition in long term trade investment pertains to investment in Dabon International Pvt.619.806.40 11..00 500. 2009 As at March 31.Raw Materials .00 50.24 17.00 150.Other than Trade 1 Commerce Centre Cooperative Housing Society Limited 2 Capexil (Agencies) Limited 3 Dabur Employees Consumers Co-op Stores Limited 4 Dabur Employees Cooperative Credit Society Ltd 5 Co-operative Stores Limited.00 270.27 0.07 0.32 11.01 0.Trade Investments 1 Sanat Products Ltd 2 Dabon International Pvt Limited III) Unquoted equity shares ..00 3. Advance against equity shares of Fem Care Pharma Ltd Total Less Provision For Diminution In Value of Long Term Trade Investment Total Notes : Aggregate Book Value of Unquoted Investments Aggregate Book Value of Quoted Investments Aggregate Market Value of Quoted Investments (Based on 31st March..131.24 16.Stock in Process .97 133 .74 13.. except share data) Numbers (As on 31.000. IRFC Limited 5.07 0.00 20.00 0..513.60 548.00 20.07 0.00 27. Power Finance Corporation of India 3.42 105.51 22. Loans and Advances A Current Assets : Inventories .877.248.00 105..00 0.63 106..42 30.05 1.03 0.00 27.94 5.24 1.64 745.39 300.00 0..08 1.10 0.760.32 1.00 20. Long Term Investment I) Quoted-Equity Shares .00 50.77 37.00 0..03.27 0. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.

Balance with Scheduled Banks In Current Accounts In Fixed Deposit Accounts .84 12.90 1.385.Balance with Non Scheduled Banks In Current Accounts In Fixed Deposit Accounts 36.28 716.137.85 46.31 22.080.37 1.20 864.842.02 90.80 529.35 Schedule IA .07 1.85 1.55 70.004.46 10.21 1. 2008 Schedule H .33 220.177.092.390.716.22 183.55 2.71 24.96 1.57 2.27) Advance Payment of Tax Advances to Suppliers Advances to Employees Balance with Excise Authorities Other Advances recoverable in cash or in kind or for value to be received Total (A+B) 2.Remittance-in-transit & Cheques-in-hand .20 B.872. 2009 As at March 31.993.71 403.461. Loans and Advances (Unsecured.10 2.02 3.) Cash and Bank Balances : Cash in Hand .08 0.88 14. except share data) As at March 31.43 1.70 300.41 48.524.Miscellaneous Expenditure (To the extent not written off or adjusted) Technical Knowhow Fees Paid Less: Amortised during the year Deferred Employee Compensation under ESOP: Opening Balance Addition during the year Less: Cancelled during the year Less: Amortised during the Year Total 9.256.953.75 1.156.80 2.07 165.905.90 Previous Year Rs.37 9.485.385.90 527.25 16.888.580.91 135. Considered Good) Loans & Advances to Companies Security Deposit with various Authorities (including Deposit with Govt. Authorities Rs.262.253.81 55.15 77.(Contd. 887.39 7.23 332.542.761.16 575.33 876. 411.43 8.40 6.12 18.37 134 .21 1.08 864.00 28.54 1.395.37 95.656.(All amounts in Indian Rupees in lacs.27 9.902.

.84 2.Cost of Materials Raw Materials Consumed : i) Opening Stock ii) Add : Purchases iii) Less : Closing Stock Packing Materials Consumed : i) Opening Stock ii) Add : Purchases iii) Less : Closing Stock 9.50 50..17 32..200.....14 66..40 762..60 9.761.786. 2009 ...312.77 44.50 40.71 18..75 Schedule J .69 38.741.05 3.22 93.88 972. except share data) As at March 31. 2009 As at March 31. Sales : Domestic Sales Less Returns Export Sales 264..39 8.77 45. Other Income : Export Subsidy Rent Realised Sale of Scrap Miscellaneous Receipts Profit on Sale of Current Investments other than Trade Profit on Sale of Long Term Investments other than Trade Profit on Sale of Fixed Assets Interest Received 681.74 Schedule K .186..131.88 75.457.055.715.952.054.953.90 19..Miscellaneous Expenditure Written Off Technical Knowhow Fees Paid Deferred Employee Compensation under ESOP Less: Transferred to Director Remuneration Total 9.628.64 733..411.57 239.448.45 845..34 84.14 B.94 81.08 438.045..084.46 58..99 47.77 1..Sales and Other Income A..66 5.56 11.37 716.57 5. 2008 Schedule IB .684..04 566.80 135 .58 4.131..20 287.. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs..499.853.31 548.113....401..27 6.38 56...87 0.00 4.79 44.43 283.22 1.78 39.312.34 465.12 429.27 207.242..69 11.012.59 7.79 18..842..18 7.131..35 297.S chedules Annexed to and forming part of the Profit and Loss Account for the year ended March 31.129.400.

62 19.111.Payments to and Provisions for Employees Salaries.80 3.82 874.86 11.576.15 338.35 546. 2009 For the year ended March 31.42 15.323.21 1.974.390.48 420.13 8.35 15.677.53 1.628.95 4.67 23.74 6.16 1.94) 111.930.011.74 13.924.469.974.Manufacturing and Operating Expenses Power and Fuel Stores & Spares Consumed Repairs & Maintenance — Building — Plant & Machinery — Others Processing Charges 5.477.29 2.670.020.48 1.975.08 19.84 Schedule L .578.77) 137.673.917.47 1.92 3.) Purchase of Finished Products Adjustment of Stocks in Process and Finished Goods Opening Stock : Stock in Process Finished Products Closing Stock : Stock-in-process Finished Products Increase(-)/Decrease in Stock in Process and Finished Goods 3.628.74 (3. Wages and Bonus Contribution to Provident and other Funds Workmen and Staff Welfare Directors’ Remuneration 18.71 1.74 Schedule M .353.(Contd.242.36 9.51 (3.41 1.99 16.32 11.(All amounts in Indian Rupees in lacs.356.769.77 19.530.068. 2008 Schedule K .772.899. except share data) For the year ended March 31.92 600.32 11.21 1.95 8.09 557.539.42 15.84 309.617.466.602.152.602.68 136 .460.

.522.78 2..772.87 24.44 7.400.325.79 6..704.204.73 451.69 565..83 576.11 10.22 258.77 2.94 34.382...80 55....65 9.63 75.. Fax Expenses Security Expenses General Expenses Directors’ Fees Auditors’ Remuneration: Donation Contribution for Scientific Research Expenses Provsion for Doubtful Debts (Net of Excess Provision written back Rs 19.87 5.958.320. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.68 364...65 415.......63 2.62 1..27 600.20 122.640.42 0..00 498.55 1.554.937.37 11.Selling and Adminstrative Expenses Rent Rates and Taxes Insurance Sales Tax Freight and Forwarding Charges Cartage and Coolie Commission.46 745.68 1..22 348...97 469.89 137 .13 77.85 40..63..07 338.18 175.38 35...74 1..720.73 29.73 518. previous year Nil) Loss on Sale of Fixed Assets Provision for Contigent Liability (Net of Provision added back Rs.10 101.03 491.82 135.Financial Expenses Interest Paid On : Fixed Period Loan Others Bank Charges 969.491. 17.665.07 73.26 62.126.68 2.07 503... Discount and Rebate Advertising and Publicity Travel & Conveyance Legal & Professional Telephone.... except share data) For the year ended March 31.36 785.03 436.24 2.70 23.77 250. 2009 For the year ended March 31..139..84 13. 2008 Schedule N . previous year Nil) Share Issue Expenses Preliminary Expenses Fixed Assets Written Down 2..46 Schedule O .679.75 179.

Dabur Egypt Ltd. Ltd. Weikfield International (UAE) Ltd. (a subsidiary body corporate incorporated in UAE. 100% stake where in is held by Dabur International Ltd) and Naturelle LLC ( a subsidiary body corporate incorporated in Emirate of Ras-al-Khaimah.). Minority interest.). Subsequent generation of reserve other than that of the nature of capital reserve including gain/ loss arising on account of translating the transactions of the year. ACCOUNTING POLICIES Significant accounting policies are summarized below: 1. The consolidated financial statements have been prepared on the basis of AS-21. (a subsidiary body corporate incorporated in Bangladesh. issued by ICAI under pooling of interest method read with the following basic assumptions: I. III. 138 . respectively). after fully eliminating intra-group balances and intra-group transactions and resulting in unrealized profits or losses. Principles of Consolidation: The Consolidated Financial Statement relates to Dabur India Limited (the parent company) and H&B Stores Limited (a wholly owned subsidiary company incorporated in India). (a wholly owned subsidiary body corporate incorporated in Egypt. rise in the value of stake of parent company in terms of reporting currency upto the date of commercial production (i. 100% stake wherein is held by Dabur International Ltd. Minority interest. II. their assets were due for capitalization) on account of exchange fluctuation has been credited to capital reserve. 90% stake wherein is held by Dabur International Ltd & 10% stake held by Dabur (UK) Ltd ). Dabur (UK) Ltd. Dabur International Ltd.5% stake wherein is held by Dabur International Ltd. liabilities. where lying. 90% stake wherein is held by Dabur International Ltd). Asian Consumer Care Pakistan Ltd (a wholly owned subsidiary body corporate incorporated in Pakistan. (a subsidiary body corporate incorporated in Nepal. in the net income of consolidated subsidiaries have been adjusted against the income of the group so as to arrive at net income attributable to the parent company. (a wholly owned subsidiary body corporate incorporated in British Virgin Island.(All amounts in Indian Rupees in lacs. in the same manner as the parent company’s separate financial statements unless stated otherwise.41% stake wherein is held by Dabur International Ltd. year-end assets and liabilities of the foreign subsidiaries for the purpose of consolidating with parent company’s assets at exchange rates ruling on year-end-date has been recognized as reserve specifically earmarked for the purpose forming part of general reserve. Ltd. the date. Dabur Nepal Pvt.). has been disclosed in the consolidated financial statement separately from liability and equity of shareholders of parent company. 38. 97. except share data) Schedule P . (a wholly owned body corporate incorporated in Isle of MAN). 76% stake wherein is held by Dabur International Ltd.e. Investments of parent company in subsidiaries are eliminated against respective proportionate stake of parent company therein on the respective dates when such investments were made by way of debiting/crediting the difference of the two in goodwill/ capital reserve except for DNPL where the same is adjusted against share premium account.. income and expenses. In respect of foreign subsidiaries. The financial statements of the parent company and its subsidiary companies have been combined on a line-by-line basis by adding together the book values of like items of assets. The consolidated financial statements are prepared by adopting uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible.Accounting Policies & Notes to Accounts A. consisting of equity attributable to them on the date such investments were made by the parent company and movement in their equity since the date of parent subsidiary relationship. which has control of composition of board of directors of the former being raison d’etre of subsidiary status) African Consumer Care Ltd (a wholly owned subsidiary body corporate incorporated in Nigeria. and Dabur International Ltd. 76% & 24% of stake wherein are held by Dabur (UK) Ltd. Asian Consumer care Pvt.

Current investments are held at lower of cost and NAV/Market value... the parent company has provided liability accruing on account of deferred entitlement towards LTC in the year in which the employees concerned render their services. In respect of part of 5/1 Sahibabad..Dhaka.... redundance & un-usability at the year end. • • • • • b. if any. Narenderpur and Alwar Unit of the parent company and Asian Consumer care Pvt. Depreciation is charged on net fixed assets is subject to deduction of subsidy amount.. if any.. when crystallizes.. duties.. Fixed Assets and Depreciation: • • • • Fixed assets are stated at carrying amount subject to deduction of accumulated depreciation. d.. Investments: Long term investments are held at cost. Impairable tangible fixed assets under cash generating unit concept and intangible fixed assets under assets specific context of AS –28 and para 83 are identified at the year-end in term of para-5 to 13 of AS-26 respectively issued by ICAI for the purpose of arriving at impairment loss thereon. Apart from test of impairment within the meaning of AS-28 issued by ICAI.... being the difference between the book value and recoverable value of relevant assets. a. Capital Subsidy received against fixed capital outlay is deducted from gross value of individual fixed assets. direct expenses and overheads (except for those relating to existing employees of company deputed for project implementation) are capitalized only. is charged against revenue of the year. Provision is made against diminution in carrying cost of investment. Patent and trade marks are amortized equally over a period of 10 years... forming part of subsidy scheme granted.. individual tangible fixed assets of various CGU’s are identified for written down on the ground of obsolescence... Fixed assets of the overseas subsidiaries have been accounted for in terms of the exchange rate prevailing at the point of commencement of production of relevant subsidiaries pertaining to assets appearing since that point of time and at purchase price (including cost of installation) for remaining fixed assets.. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.. 2.. Accounting Convention: The accounts have been prepared in accordance with the historical cost convention.. damage.. 139 . c. For Green field project. and taxes and expenses incidental to acquisition and installation... Cost includes inward freight. Depreciation has been provided at rates provided in schedule XIV of Companies Act. by way of proportionate allocation of subsidy amount thereon. Deferred Entitlement on LTC: In terms of the opinion of the Expert Advisory Committee of the ICAI... Moulds are depreciated 100% in the year of addition...... depreciations have been provided on straight line method at the rates prescribed under schedule XIV. Ltd.. depreciation on fixed assets have been provided on written down value method at rates prescribed under schedule XIV for remaining fixed assets.. Impairment loss. Software’s are amortized over the period of five years on straight line basis.. except share data) IV Transaction of overseas subsidiaries from overseas currencies to reporting currency :Current assets/ outside liabilities and income/ expenses of overseas subsidiaries have been translated in reporting currency in terms of exchange rates prevailing on year-end date and average rate respectively on the basis of nonintegral operation approach as per revised AS-11 there by accounting for the aggregate net impact of exchange fluctuation in this regard as exchange reserve shown under the head of Reserve and Surplus.. of permanent nature as required under AS-13 issued by ICAI.

Leave Salary of employees on the basis of actuarial valuation as per AS-15 (revised). Packing materials. when reliably estimable. Other employees benefits as per actual liability accrued. except share data) e. Contingent Liabilities: Disputed liabilities and claims including claims raised by fiscal authorities. However. At cost of input plus appropriate Overhead. stores & spares :Work-in-process :Finished goods:On Weighted Average Basis At cost of input plus overhead upto the stage of completion. is charged to revenue in the year of payment. Sales comprise of sale price of goods including excise duty and exclude sales tax and discount. Raw materials. Deferred tax is recognized for entities where the same is mandatory applicable subject to the consideration of prudence. Recognition of Income and Expenses: • • • i. Basis of determination of cost remain as follows: • • • f. iii. is recognized in accounts.(All amounts in Indian Rupees in lacs. Inventories: Stocks are valued at lower of cost or net realizable value. VRS. All items of incomes and expenses have been accounted for on accrual basis except for those income recognized on realization basis on the ground of uncertainty as laid down under AS-9 issued by ICAI. Defined Benefit Plans : • • • ii. on time differences being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods. Research and Development Expenses: Contributions towards scientific research expenses are charged to the Profit & Loss Account in the year in which the contribution is made. for which no reliable estimate can be made of the amount of obligation or which are remotely poised for crystallization are not provided in accounts but disclosed in notes on accounts. Provident fund & ESI on the basis of actual liability accrued and paid to trust / authority. j. on the basis of actuarial valuation as per AS-15 (revised). Post separation benefits of directors. k. h. Income Tax & Deferred Tax Income Tax is estimated considering the provisions of the Statute. g. pending in appeal/court. which is of the nature of long term employee benefit. Foreign Currency Translation: In respect of foreign branches/offices integral foreign operation approach has been adopted as per revised AS-11 140 . Gratuity Liability on the basis of actuarial valuation as per AS-15 (revised) Defined Contribution Plan : • • • Liability for superannuating fund on the basis of the premium paid to the Life Insurance Corporation of India in respect of employees covered under Superannuating Fund Policy. Sales and purchases are accounted for on the basis of passing of title to the goods. present obligation as a result of past event with possibility of outflow of resources. Retirement Benefits: Liabilities in respect of retirement benefits to employees are provided for as follows :i. if paid.

.2004 is amortized on straight line basis over a period of six years.... Miscellaneous Expenditure: • • Technical know-how fees paid to Technical Collaborators upto 31.. Transactions of parent and domestic subsidiaries with overseas parties are recognized at currency rate ruling on the date of transaction.48...... Deferred Employees Compensation under ESOP is amortized on straight-line basis over vesting period. Pursuant to the indemnity bond executed by Sharda Laboratories Limited in favour of the company and as per terms and conditions of the contract executed with them.The matter is pending before Hon’ble High Court of Delhi for the appointment of an arbitrator . As at March 31... 2009 10736.21... which was also dedcied against the parent company.against the parent company and Sharda Bioron Laboratories Limited.26 7884.95 pursunt to the decision of Hon’ble Supreme Court in this regard.. except share data) and accordingly revenue items have been converted at average of month end exchange rates during the year...64 (previous year Rs. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs. • B. During the year 1991-92 the parent company had received a refund of Rs... Employees contribution for the nominal value of share in respect to option granted to employees of subsidiary company is being reimbursed by subsidiary companies to holding company. corresponding ESOP outstanding is transferred to share premium account. Employee compensation in respect to option granted to subsidiary company employees is being reimbursed by subsidiary companies to holding company. Impact of exchange fluctuation on integral operation charged to profit and loss accounted is separately disclosed in notes to accounts.. 2008 8556. NOTES TO ACCOUNTS 1.. Subsequent such expenses are charged to revenue in the year of incurrence.41 5969.48. Share issue and preliminary expenses are charged to revenue in the year of incurrence. Necessary adjustments in respect to recovery/refund will be made as per arbitration proceeding. With the exercise of option and consequent issue of equity share. Fixed assets have been converted at the rates prevailing on dates of purchase.. Gain or loss arising towards rise/fall of overseas currency vis-a-vis reporting currency is accounted for in profit and loss account.48.25 As at March 31.64) paid to Excise Authorities on behalf of Sharda Laboratories Limited.The balance amount of Rs.. • • m.5.13 rasied by the District Excise Officer.. Ghaziabad.. Employee Stock Option Purchase (ESOP): Aggregate of quantum of option granted under the scheme in monetary term (net of consideration of issue to be paid in cash) in terms of intrinsic value has been shown as Employees Stock Option Scheme outstanding in Reserve and Surplus head of the Balance Sheet by way of debiting deferred Employee Compensation under ESOP as per guideline to the effect issued by SEBI.64 by invoking the arbitration clause.46 along with interest demanded by the Excise Authorities. Building constructed on leasehold land included in the value of building shown in Fixed Assets Schedule: Cost/Revalued Written Down 2. now known as SBL Limited. the recovery proceedings have been initiated by the parent company against Sharda Boiron Laboratories Limited for Rs.. 141 .... The Hon’ble Supreme Court of India had concurred with the order of the District Excise Officer. l. Ghaziabad. in respect of excise duty demand of Rs. The parent company had filed the review petition before Division Bench of the Hon’ble Supreme Court of India.. Exchange gain or loss arising out of above is accounted for in Profit & Loss Account..03. Assets & Liabilities other than fixed assets are converted at the year-end exchange rate...72 Loan and Advances includes Rs...68..

20.39) v.51) ii.00 0.00 0. In respect of Corporate Guarantees given by the Company Rs. Contingent Liabilities / Capital Contract : a) i) Claims not acknowledged as debts: a) In respect of civil suits filed by third parties Rs 655.46 Provision made Provision adjusted Closing during the year during the year Provision 0.74 1. 46.4103. Appeal pending before S T Appellete Pending before High Court Nature of Liability VAT Sales Tax Sales Tax Sales Tax Entry Tax Sales Tax Sales Tax Excise Excise Short payment of VAT Classification of Laldant Manjan Classification of Gulabari Exemptions forms from dealers Entry tax on car Classification of Hajmola Candy Tax Paid purchase Classificiation of Sanuf ka Ark Capital Goods removal i) Resulting outflows against above liabilities pending before Sales Tax DC/Tribunal/CCT’s.48) b) c) d) In respect of Bill Discounting Rs. 4. except share data) 3. 4527.52) b) In respect of claims by employees Rs 12. In respect of excise duty disputes pending with various judicial authorities Rs. In respect of Income tax under appeal Rs.00 0.00 0.00 0.(All amounts in Indian Rupees in lacs.68 DC appeal Forum where the dispute is pending IInd appeal filed Filed review application with High Court Appeal filed before the D.64 24.78 28. a.27 (Previous year Rs.00 0. ii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.75) vi.08 0. c.00 0.00 162. recoverable value of cash generating units (CGUs] have been assessed based on value-in-use method which for each CGUs worked out to be much higher than corresponding book value of net assets thereby not warranting further exercise of arriving at their net-selling-price. are expected to be in succeeding financial year. each plant of each subsidiary constitutes independent CGU.60 0.00 0.16 (Previous year 270.94) Information pursuant to AS 29 issued by ICAI: i) Brief particulars of provisions on disputed liabilities :Particular of dispute Opening Liability 62.921. In respect of Sales Tax under appeal Rs.00 62.50) c) In respect of letters of credit Rs.3652.00 0.2125.00 0.00 0.64 24.78 28.32 0. Annual discount rate considered for arriving at value-in-use of assets pertaining to each CGU are as per interest rate of external borrowing plus risk factor at a rate of two percent per annum.C. net of advance (previous year Rs.74 1.22 175.00 17. 6683.C. This further confirms absence of exigency of making any provision against impairment loss.49 (previous year 977.84 (previous year 2753. to the effect of transfer of 142 .00 17. 2003 on de-merger of Pharmaceutical Division of the company to Dabur Pharma Limited .28.77) iii. if mature.110.00 0.00 0. 5.22 30.00 0.00 30.1049.67 (previous year Rs.29 27.29 27. Pursuant to approval by Hon’ble High Court Delhi of parent company’s application for modification of order dated Oct 17.60 17.1731. Beside those referred to in parent company financial statements.08 0. Further to para A(2)(b) above.32 0.00 30.22 0.42) Estimated Amount of contract remaining to be executed on capital Account Rs.89 (previous year 1832.75 (previous year Rs.2135.00 0.77 (previous year 0.79 (previous year Rs. b.Appeal IInd appeal filed before D C Appeal Appeal pending before D.14) iv.20. iii) Remote risk possibility of further cash outflow is presumed pertaining to contingent liabilities listed in para 4 (a) and 4 (b) above. In respect of Bank Guarantees executed Rs.

Defined Benefit Plan (a) Pursuant to adoption of AS-15 as revised by ICAI. Employee Related Dues: A.04 143 .49 295.43 22.47 Crore in terms of aggregate of consideration money in pursuance of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations...36 Post Separation benefits of director (un-funded) 289.08 534.41 -147.. Consent of SEBI in this regard is still pending..17 200. 6.203. at a consideration of Rs... Consequent upon signing of aforesaid agreement..55 0.42 38. C. beneficial interest thereon accruing in favour of transferor of shares...47 676. Interest as on 31.. In addition to consideration money the parent company has so far incurred Rs.. Expenses recognised during the year : Gratuity Leave Salary (funded) 169..... I.50 812. 56. 800 per share not exceeding Rs.12 Crore towards cost of proposed acquisition. except share data) land worth Rs 184 in favour of the parent company from the demerged entity due to refusal of HUDA to accord status of inheritance of said property to Dabur Pharma Ltd .1.69 -26... the parent company has inherited the land against payment of requisite consideration money during the year.. (FEM..2009 accruing on escrow account amounting to Rs5.. 1997. Pending completion of transfer of shares.41 1463.71 -48... The parent company during the year. a domestic listed company) for acquisition of their shares (72..96 428.90 359.73 Crore subject to approval of transfer by appropriate authorities. Particulars (funded) A.67 199.15% of total share capital subscribed and paid up therein) at a consideration of Rs. the company has submitted letter of offer to SEBI for acquisition of upto 20% of issued and subscribed share capital of FEM from the public shareholders of FEM. the consideration amount has been retained by the parent company appearing as advance against share of Fem Care Pharma Ltd in an escrow account specifically designated for the purpose appearing as advance against share of Fem Care in investment schedule. has entered into an agreement with shareholders collectively holding controlling stake in Fem Care Pharma Ltd.81 crore lying in bank has not been accounted for due to absence of beneficial right there on..26 143.. treatment of defined benefits obligations have been changed in terms of standard with the following adjustments incorporated in accounts......00 91. D.. B.... Current Service Cost Interest Cost Expected Return on Plan Assets Accumulated Loss/ Gain Total Expenses recognized during the year (A+B+C+D) 353.. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs.03.90 Total 7..

39 353.57 -2454.02 763.52 100% in reimbursement right from insurance company for fund managed by it 6.18 13.2009 C.00 298.17 200.50% 7.68 146.2009 Actuarial Assumption : Discount rate (%) Estimated rate of return on plan assets (%) Salary escalation ratio inflation (%) Method (funded) 165.20 II.13. Expected Return on Plan Assets III.2008 969.16 169.20 62.96 1135. except share data) B.80 0. 144 .6% and normal retirement age at 58 (i) There has been rise in opening liabilities towards gratuity and leave salary by Rs.03. Obligation as on 01.00 Total (funded) I. promotional increases and inflationary consequence over price index. Settlement/Paid VII.90 -242.97 545. Actuarial Gain / (Loss) VI.00 0.2009 D.98 -440. G. Change in Plan Assets Particulars Gratuity Leave Salary Post Separation benefits of director (un-funded) 0. Settlement VI.00% Projected unit credit method F. GS 20% Director.04. APP .2008 2473.23 Post Separation benefits of director (un-funded) 4940. Fair Value of Plan Assets as on 31.97 246.72 -81.39 -81. H.00 0.47 -2000.55 821.43 -144. Employer Contribution V.40.42 38.03 53.00 0.54 91.80 -212. Past service cost III.(All amounts in Indian Rupees in lacs.90 285. OS – 12% and SM. Investment detail of plan assets as on 31.99 48.07 7971.56 II.17 984.50 3626. E.07 1270.19 111.04.17 2683. MS.04.39 and Rs.78 -212.03.00 0.00 0. Demographics assumptions take in to account mortality factor as per LIC (1994-96) ultimate criteria. employees turnover at FS 20%.16 respectively against past services cost relating to period before 01. Reconciliation of opening & closing balances of obligations Particulars Gratuity Leave Salary (funded) 557. Interest cost V.76 295.2007 because of certain changes in actuarial assumption in recognition of genuine exigencies during the course of valuation for current year.00 299.05 40. Actuarial Gain / (Loss) IV. Obligation as on 31.35 534.71 199. Current service cost IV. Fair Value of Plan Assets as on 01.68 7072.20 -227.50% 10.49 Total (funded) I.03.67 0. The basis used for determination of expected rate of return is average return on long term investment in government bonds The estimate of future salary increase take in-to account regular increment.

. Related party Disclosures Related party disclosures as required under AS-18 issued by the Institute of Chartered Accountants of India are given below: (a) Name of related party and nature of related party relationship where control exists: Nil (b) Other related parties transaction with companies under consolidation.20 lacs with corresponding rise in general reserve. the value of obligation and planned assets have been carried in terms of valuation of actuary and insurance company respectively... This also led to decline in deferred tax liability by Rs...51 223...44 316..2009 Current service cost B..91 Leave Salary 77.. Gratutity Obligation as on 01.04.. Ltd RAK Investment Authority Forum 1 Aviation Ltd (ii) Key management personnel (Whole time directors) Anup Sharma Pradip Burman Gaurav Burman Mohit Burman Saket Burman Amit Burman Aditya Burman Relatives of Key Management Personnel 2008-09 552. Bangladesh Weikfield Product Co. Included in above following figures based on management estimate not being actuarially ascertained.78 188...63 52..82 134...... (i) Joint Ventures/Joint Venture Partners Mr Rukma Rana ACI Ltd..43 2007-08 562...16 300. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs. Things stated above entailed adjustment of difference in annual accretion of liability towards gratutity and leave salary which have been made against corresponding actuarial gain/ loss.98 261. except share data) Company has treated the difference in past service cost instead of changing the opening balance and adjusted this segment of cost with opening general reserve.99 Total 212.56 55.90 (ii) (iii) (iv) (v) Asha Burman Ashok Burman & Anand Burman 145 . Defined Contribution Plan :Company’s contribution to different defined contribution plans :Particulars Provident Fund Employees State Insurance Employees Superannuation Fund 8A. Pvt..18...03..66 128... Considering aforesaid facts. Following difference between actuarial computation and return from insurance company of the figure of settlement of claim during the year. the company has considered the settlement amount as per advice from insurance company due to factuality of the figure.....15 118..2008 Obligation as on 31..36 104...

24 (3. Southern Enterprises 8B.62) 4. Welltime Housing and Finance Pvt Ltd (v) Entreprises that have a member of Key Management in common 1.24) 48. 3.00 (7.2009 (125.85) (-) 0. 08) Sunder Krishnan Sikandar Tiwana Sarabjit Singh (iii) Entities over which Key Management Personnel are able to exercise significant influence: 1. Related Party Transactions Consolidated as on 31.62) 4. Dabur GI Invest Corp 3. 2.84 (-) 10.21) 456.(All amounts in Indian Rupees in lacs.03.09 (3.87) (-) (-) (-) 7.00 (-) (-) (-) (-) (-) Sale of Goods (-) Equity Conribution 456.84 (-) Repayment of Loans Given(Instl.14 (-) Loan Given (-) Loan Received (-) Rent Paid (-) Security Deposit 38.2009 JOINT VENTURES ASSOCIATES KEY MANAGEMENT PERSONNEL (-) (-) (10.60) (-) 3.00) (-) 146 .00 (-) (0.13 (-) (-) 38.86) (-) 59.60) 326.00 (-) Refund of Security (-) General Expenses 326.03. Welltime Housing and Finance Ltd Chowdry Associates Ratna Commercial Enterprises Pvt Ltd Narang Management Consultant Pvt Ltd (iv) An enterprises owned by any Director of DIL ( Covered in clause 3c/cd) 1.35) (-) (0.86) (-) 59.00 (2. 2.36 (47.85) RELATIVES OF KEY MANAGEMENT PERSONNEL (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) TOTAL OUTSTANDING AS ON 31.24 (5. Ratna Commercial Enterprises Pvt Ltd 2. except share data) Siddharth Burman P D Narang Sunil Duggal Rukma Rana Peter Baker (till 27th Oct.14 (-) (10.21) (-) (-) (-) (10. 4.09 (3.00 (-) 77.Recd) (-) Interest Paid (-) (125.36 (-) 38. Dabur Invest Corp.

Government under Land Acquisition Act and the State Government had allotted and given possession of about 4.15) Later than 5 year 0. Related Party (Contd..12 (-) (297.337.P..29 (-) (-) 8C. Information (to the extent applicable) pursuant to AS-19 issued by ICAI Not Later than 1 year Building & Machine Cars (b) (c) 214.16 (474.42.2009 (-) Interest Recd On Security Deposit 2.20 863826759 868807461 3.03) 33... The company has filed a claim for compensation of Rs..49 (38. 147 ..84 The company’s free hold land situated at Sahibabad measuring about 7.31) (-) (-) (-) 714.. Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs..324.64) 714. However.32 (939.21 864907642 869156529 4.87 3... Basic Diluted 2008-09 2007-08 39121.324.00 0. keeping in view the generally accepted accounting practice.86) (-) 287.80) Later than 1 year not later than 5 year 268.23 (61..1 per share) Basic Diluted 9./Pension (-) Guarantees & collaterals given 714. (a) Lease rent debited to Profit & Loss account of the year Rs.29 (-) Employee Stock Option Scheme (-) Figures in brackets are of previous year Interest Recd On Loans Given (-) (-) (-) (-) (-) (-) (-) 1..) JOINT VENTURES ASSOCIATES KEY MANAGEMENT PERSONNEL RELATIVES OF KEY MANAGEMENT PERSONNEL TOTAL OUTSTANDING AS ON 31.00 0. Earnings per share has been computed as under: Profit after Tax and after Minority Interest Weighted average number of shares outstanding Earnings per share (face value Re...572.. Ghaziabad against the land so acquired.31) (-) (-) 2..25 (-) Remuneration/Exg.29 (-) (-) 287..78) (1..... except share data) 8B. Irrevocable lease agreement relates of flat & vehicle.. lease period not exceeding five years in respect of any arrangement..00 10..68) 46..25 (-) (-) 1...72 acres of land on lease to the company in lieu of acquired land.42 before the Officer of Special Land Acquisition Officer...00 0..140.12 (297.21).58 acres was acquired by U. the same claim has not been considered in the books of accounts.52 4.50 33392..96 (previous year Rs.....03.48 (248..32 (200.

Figures in brackets are for previous year.03. Information pursuant to AS-24 on discontinued operations (pertaining to parent company only] Particulars 1 2 3 4 5 6 7 8 Discontinued since Segment. except share data) 11. The contributions of venturers are towards capital build up of the JCE and periodic contribution towards cost of maintenance of air craft. The participation of the venturers in the affairs of the management of the JCE is through representation in the composition of Board of Directors as agreed in share holder’s agreement. 12. 236.92) which has been debited to Profit & Loss Account.48 (Previous Year Rs. Grouping and heads of accounts of the subsidiaries have been rearranged in terms of presentation of those of parent company as and when necessary.Variable component of cost of maintenance is borne by user of the aircraft in proportion to their actual usage and fixed component is shared by all the venturers in proportion to their capital contribution. Parts of fixed assets belonging to discontinued operations under reference have been used for new plant setup in relevant premises.42) net of exchange gain Rs. Investment in Joint Venture : (a) The parent company has become a party to an agreement among seven parties as on 1.2009 and income and expenses for the period of investment in JCE being the proportionate share of parent company estimate from unaudited financial statement of JCE.8. 2000 FMCG 28 (28) 0 (0) 0 (0 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) Note: I.793. II. the main object of the JCE being maintenance of aircraft for use of venturers or otherwise.40 (previous year Rs. Such assets have been left out of the purview of ‘3’ above. (b) (i) Incorporated in CFS on proportionate basis are the following assets and liabilities as on 31. Exchange loss works out to Rs 210. 148 . 13.2008 for controlling the management of Forum 1 Aviation Limited. 40. Besides.(All amounts in Indian Rupees in lacs. Unit relates to in financial Statement Carrying amount of total assets Carrying amount of total liabilities Profit from ordinary activities Income Tax expenses Gain on disposal of assets Cash flow from discontinued operations: Operating activities Investing Activities Financial Activities Hair Oil Baddi March. 14. 04 FMCG 33 (33) 4 (4) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) MSY Unit Baddi Nov. a domestic jointly controlled corporate entity (JCE) with part of its operation akin to jointly controlled operation. figures for previous year have been rearranged/ regrouped as and when necessary in terms of current year’s grouping.

....456) in terms of percentage of total subscribed and paid up capital of JCE works out to 14. 149 .84 towards its commitment on revenue expenditure of JCE for the eight months i.2009 as incorporated herein :Secured Loan Creditors Fixed Assets Investment Advance to employee Cash & Bank Debtors Other Advances Income and expenses for the 8 months period ended on 31st March 2009 incorporated herein :INCOME Misc receipt (include revenue from flying Rs.... Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs..16 has been credited to capital reserve.e..28%.289) Total EXPENSES Operation Expenses Payment to and provision for employees Administrative expenses Financial expenses Total Profit (Forms part of profit in consolidated Profit & Loss account DIL SHARE 291 291 68 37 105 76 286 5 714 14 869 33 1 70 18 252 (ii) Consequent upon proportionate consolidation of financial statement of JCE excess of net assets over worth of investment in books of parent company as on 01............ except share data) Assets & Liability of JCE as on 31........08. (d) Parent company has paid Rs..... working out to Rs..2008...03.326... (c ) Stake of the company (Rs. since it’s entry in joint venture arrangement.

314 11.753 49.990 139.298 3.295 6.922 1.57) .298 282 49731 5593 4700 5677 4849 (1783) (763) 212 219 219 As on 31/03/08 3.43 (32499.215 51.326 60.325 3.692 38 64.893 1.337 939 567 66547 19740 46807 2321 5404 39082 41 39123 As on 31/03/09 81.111 86.860 743 30. Out of the total sales of Rs.714 10.753 58.054 64.419 11.780 8. the secondary segment for the company is based on the location of customers’s .613 567 Segment result Unallocated Corporate Expenses Operating profit Interest expense (Net of Interest Income) Income Tax (Current + Deferred) Profit from ordinary activities Exceptional item Minority Interest Net profit OTHER INFORMATION Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Capiltal Employed Depreciation Non-cash expenses other than depreciation SECONDARY SEGMENT (All amounts in Indian Rupees in lacs.448 51.14 (239628.638 30. except share data) As the company also exports.156 438 19740 49731 5593 4700 5677 4849 -1783 -763 212 219 18612 (18612) 1680 5065 (25357) 13 (25344) As on 31/03/08 59.687 35.150 Consumer Care Business Current Period 220714 220714 186419 21232 17879 33510 29748 597 5 7358 5578 186419 21232 17879 33510 29748 597 5 7358 5578 283410 283410 Previous Period Current Period Current Period Current Period Current Period Current Period Current Period Previous Period Previous Period Previous Period Previous Period Previous Period Previous Period 239629 239629 15.688 49.770 58.717 895 76 3. Segment Report Consumer Health Business Foods Retail Others Unallocated Total Consolidated REVENUE External Sales Inter-segment sales Total Revenue RESULT 56848 56848 56848 56848 As on 31/03/09 58.485 438 58736 18612 40124 1680 5065 33379 13 33392 As on 31/03/08 87.296 5.325 64 64 3.74) the export sale is Rs 18457.111 51. 283411.295 6.753 8.240 59.770 85.448 146.448 59.714 10.054 7.261 229 49731 5593 4700 5677 4849 (1783) (763) 212 219 (19740) 2321 5404 (27465) 41 (27424) As on 31/03/09 57.339 4.713 21 21 1.237 1.314 11.91 8591 50.913 1.179 1.17 ISSUED BY ICAI.111 8.790 57.713 1.990 49.049 6.766 6.437 31 As on 31/03/08 As on 31/03/09 As on 31/03/08 As on 31/03/09 As on 31/03/08 As on 31/03/09 As on 31/03/08 49731 5593 4700 5677 4849 (1783) (763) 212 As on 31/03/09 3.913 1.298 3.441 81.538 202 164 915 34.766 6. INFORMATION PURUSANT TO AS .717 895 76 3.922 485 485 1.361 3.990 57.

BASU & CO..... Narang Sunil Duggal Chairman Whole time Director Whole time Director A. except share data) 16.D. No deferred tax has been accounted for in respect of subsidiaries at Bangladesh and Pakistan due to continuing absence of taxable income and absence of virtual certainty of future profit to adjust said un provided deferred tax assets against accumulated loss.K....... Chartered Accountants S..... Jain GM (Finance) & Company Secretary 151 ... As per our report of even date attached For G.. impact thereof is lacking in materiality in the context of overall CFS...... Signatures to the Schedules “A” to “P” Annexed to and forming part of the Accounts.. Lahiri Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd. Dr. Egypt and Nigeria.. Anand Burman P..... Dabur India Limited | Annual Report 2008-09 Consolidated Financials (All amounts in Indian Rupees in lacs. No provision has been made against deferred tax for subsidiaries at Nepal.........

Consolidated Financial Statements As per IFRS applicable to European Union 152 .

2009 and of the results and cash flow for the year ended 31st March.. Our responsibility is to express an opinion on this financial statement based on our audit.... These financial statements are the responsibilities of the Company’s management.A uditors’ Report The Board of Directors. consolidated statement of income for the year ended 31st March... 2009.... We believe that audit provides a reasonable basis for our opinion. An audit also includes assessing the accounting principle used and significant estimates made by management as well as evaluating the overall financial statement presentation. In our opinion the Company’s accounts give a true and fair view of the financial position of the Company as at 31st March... Chartered Accountants (Manoj Kumar Das) Partner Membership No. Dabur India Limited . 2009 153 ......... 2009 in accordance with the European Union Standards and complying with the financial reporting requirements incorporated in the International Accounting Standards For G.. group compiled as per requirement of International Financial and Reporting Standards applicable to European Union... evidence supporting the amounts and disclosures in the financial statements.. 013783 Place: New Delhi Date: 29th April.... 2009... The said account comprises for the group consolidated Balance Sheet as on 31st March.. We conducted our audit in accordance with auditing standard generally accepted in European Union. reinstated stock holders Equity Reserves and comprehensive total income and related schedules.. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS We have audited the accounts of Dabur India Ltd. BASU & CO.... 2009. statement of Cash Flow for the year ended on 31st March. An audit includes examination on a test basis...

36 104.07 69. 2009 As at March 31.25 As at March 31.82 42. 2008 22.91 1.93 21.459.187.518.505.61 (217.96 (1.361.97 30.775.25 185.248.82 8.36) 74.39 143.728.41 37.640.922.110. plant and equipment.05 2.61 19.19 2.B alance Sheet as at March 31.478.20 95.788.88 60.85 22. 1450000000 equity shares authorised 865076249 issued and outstanding Additional paid in capital (Share Premium) Other Reserve Stock Option reserve Retained earning Accumulated & other comprehensive Income/(Loss) Total liabilities and stock holders’ equity 30 31 32 34 32A 46 33 21 26(a) 22 23 24 25 27 28 26(b) 29 14. BASU & CO.13 2.106.45 8.606.706.21 Sch.230.68 212.312.82 7.48 24.58 22.757.453. D Sch. D Sch. net Goodwill Intangibles Investments Other non-current assets Total assets LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Short term debt and current portion of long term debt Trade accounts payable Accrued expenses and other current liabilities Total current liabilities Long term debt.612. ASSETS Current Assets Cash and Cash equivalents Marketable securities Accounts Receivable.56 17.59 (228. Narang Sunil Duggal A. 2009 Schedule A (All amounts in Indian Rupees in lacs.41 20.430.24 171. Dr.485.61 13.77 1. Jain Chairman Whole time Director Whole time Director GM (Finance) & Company Secretary 154 .817.55 11.213.842. As per our report of even date attached For G.701. excluding current portion Other non-current liabilities Total non-current liability Deffered Tax liabilities (net) Total liabilities Minority interest Stockholders’ equity Common stock.120. Anand Burman P.878.25 The accompanying Notes and Schedules are an integral part of these consolidated financial statements.205.817.41) 90.54 (766. D 8.92) 143.38 22.57) 185.650. net of allowances Inventories Other current assets Total current assets Property.854. Chartered Accountants Manoj Kumar Das Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd.K.84 54.546.505.13 2.536.82 22.917.382.26 20.620.48 1.993.07 2.74 51.24 1.748.192.D.06 445.809.00 33. Re 1/ Par value.175.033.779.190.88 1.316.56 20.459.23 404.231.65 35.98 17.49 21.83 1.690.40 21. except share data) Note No. D 36 Sch.

.83 79.803. Revenue Cost of revenues Gross profit Operating expenses Selling.87 55. Anand Burman P.. except share data) Year ended March 31.22 129.581.627.040.C tatement of Income S for the year ended March 31..807.81 43. Chartered Accountants Manoj Kumar Das Partner Place : New Delhi Date : 29th April 2009 45 46 39 41 42 42A 43 38 40 . Dr.92 7..085.78 3.437. 2009 280.381.96) (40.. general and administrative expenses Personnel expenses Depreciation and amortisation Financial expenses Total operating expenses Operating Income Other income..08 4...64 7.76) 38..61 160.083. As per our report of even date attached For G... Jain Chairman Whole time Director Whole time Director GM (Finance) & Company Secretary 155 ..791.93 35.94 2.001.320..313.047.04 1.80 5.K.30 3....17 4.907.28 12.08 119.23 37.993.....065.256..49 4.590.87 (431.D.70 (13.25 4.852.859. net Income before provision for taxes Provision for taxes Current tax expenses Defered tax benefit Minority interest Distributable Profit Dividend Retained Profit Earning per common share Basic Diluted Weighted Average common shares outstanding Basic Diluted The accompanying Notes are an integral part of these consolidated financial statements.479.. BASU & CO.53 60.529 Year ended March 31.34 25.05) 32...276.201. 2009 Note No..46 864.35 106. Narang Sunil Duggal A.024.27 3.664.038.72 31..20 4.625.461 For Dabur India Ltd..642 869.76 863.056.410.156...88 111.75 10.26 40. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS Schedule B (All amounts in Indian Rupees in lacs... 2008 236.89 71..679.759 868.711....826.35 2.

89) 38202.00) 8946.96) (4.87 (431.116.74) (333. 2008 5.60 111.37) (11.806.791.04 4.203.098.219.85) 0.99 4305.298.320.44) (7.96) (16.38) 1.44) (817.61 4.72) 2.S tatement of Cash Flow for the year ended March 31. except share data) Year ended March 31.65 (2.320.068. 2009 CASH FLOWS FROM OPERATING ACTIVITIES Net Income Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities Depreciation and amortization Provision for Taxation Deferred tax benefits Loss / (gain) on disposal of property. plant and equipment Loss / (gain) on disposal of investment Amortization of employees stock option plan expenses Minority interest Interest expenses Changes in operating assets and liabilities (Increase) / decrease in accounts Receivable (Increase) / decrease in Inventories Decrease / (increase) in other non current assets Decrease / (increase) in other current assets Increase / (decrease) in account payable Increase / (decrease) in other Current Liabilities Increase / ( decrease) in other non current liabilities Dividend Tax Income tax paid Interest paid Net cash provided by operating activities Cash flow from Investing activities Expenditure on property.68) 850.70 131.14 (40.23) (12.34) 10.60) (1.53 13.05) 156 .31) 7319.64 Year ended March 31.60 (1101.68 (23701.088.993.83) 34. land and equipment Purchase of intangibles Purchase of Securities Purchase of Marketable securities Sale of other securities Net cash issued in investing activities Cash flows from financing activities Proceeds from exercise of stock option Increase of short term debts (net) Repayment of long term debts (net) Payment of dividend 38.03) (4483.71) (11.149.89 (16.83 (556.479.989.34 (902.806.76) 2.38 (26.664.86) (2.64 2.11 2403.77) (3366.993.28) (4989.24) 4.13 (1.62) (1113.28 (984.05) 1.459. 2009 Schedule C (All amounts in Indian Rupees in lacs.352.03) (2.62 (13.89 (3781.93 32.00) (6480.968.10) 22.56) 13.79) 97.729.679.282.780.679.87) (2.603.15) (22.00 (20264.62) 11.12 (11578.39 (5030.413.904.62 (182. plant and equipment Proceeds from sale of propety.

81 As per our report of even date attached For G..185...........60 7656. 2008 (12612. Narang Sunil Duggal A.. Jain Chairman Whole time Director Whole time Director GM (Finance) & Company Secretary 157 ... Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs.. (693... BASU & CO.656..55 Year ended March 31... Chartered Accountants Manoj Kumar Das Partner Place : New Delhi Date : 29th April 2009 For Dabur India Ltd.74 7...28) 1888. Dr....81) 7... except share data) Year ended March 31....22 5768. Anand Burman P...D.. 2009 Net cash provided by financing activities Net increase in cash and cash equivalent during the year Cash and cash equivalent at the beginning of the year Cash and cash equivalent at the end of the year Cash and Cash equivalent is net off Bank overdrafts....81 14.K.842.

04.25 21230.2009 . of shares Stock Holder’s Equity Share Premium/ Capital Redemption Reserve 1382.49 -632. except share data) No.21 -217.1.40 21.59 -40.201.61 445.35 -7.809.45 -228.57 STATEMENT OF STOCK HOLDERS’ EQUITY.92 Other Reserve Stock Option Reserve Retained Earning Minority Interest Comprehensive Total Income 864022973 8640.2009 Particulars: Opening Balance as on 01.48 31.20 865076249 8.620.03.77 1.07 2.91 -153.1 including FBT) Translation adjustment Additional liability towards service benefit (net of defered assets Rs.650.91 10.2008 Transfer Retained earning and other Reserve Issue of Share against exercise of stock option (Note No.53 632.536.03.D (All amounts in Indian Rupees in lacs.88 60.210. 623.106.14 -82.4) Payment of Dividend 2007-08 Net Income Closing Balance as on 31. Note No 2.86.41 71.65 35854.76 404.91 1706.068. 35) Premium amount against exercise of stock option Stock option amortisation (Note No 5 and 2.27) Unrealised gain on short term investment (net of deffered Tax 5.158 SCHEDULE .581.00 1. RESERVE AND COMPREHENSIVE TOTAL INCOME AS ON 31.1.24 1.25 1053276 153.

SEGMENT REPORT AND RELATED INFORMATION MARCH 2009 IN CONFORMITY TO IFRS 14 Schedule E
(All amounts in Indian Rupees in lacs, except share data)
Consumer Care Business
Current Period Period Period Period Period Period Period Period Period Period Period Period Period Period Previous Current Current Current Current Current Current Previous Previous Previous Previous Previous Previous

Consumer Health Business

Foods

Retail

Others

Unallocated

Total Consolidated

REVENUE 218612 280712 – – – (17874) (17874) 2321 4562 (24757) – 204 – – 192 As on 31/03/09 1884 – 1941 233 – 2645 6146 914 – 233 536 42 – 1884 420 – 420 1045 38 3359 – 3359 477 – 477 927 316 – – 204 As on 31/03/08 3260 – 3260 56 – 56 1566 282 3257 (21500) – (41) (21460) As on 31/03/09 – 80231 80231 – 61873 61873 17139 1295 – (18059) (18059) 1680 4389 (24127) 2038 (22089) – (13) (22076) As on 31/03/08 – 58284 58284 – 44272 44272 11297 1154 – – – 280712 60251 (17874) 42377 2321 4562 35494 3257 38751 – (41) 38792 As on 31/03/09 105276 80231 185506 28733 61873 90606 51188 5024 – 218612 51470 – 51470 – – 51470 – 51470 – – 51470 As on 31/03/09 78910 – 78910 25127 – 25127 26774 2121 1890 226 201 1025 21009 2008 1151 3805 26607 915 775 1982 – – – – 26607 915 775 1982 2645 63498 7276 6191 13790 10700 – – – – – 63498 7276 6191 13790 10700 1941 As on 31/03/08 As on 31/03/09 As on 31/03/08 As on 31/03/09 As on 31/03/08 As on 31/03/09 As on 31/03/08 47102 5064 3626 5140 4519 (1614) (711) – – – – – – – – – – – – – – 47102 5064 3626 5140 4519 (1614) (711) 192 – – – – – – – – 47102 5064 3626 5140 4519 (1614) (711) 192 204 – – – – – – – – – – – – – – – – – – 47102 5064 3626 5140 4519 (1614) (711) 192 204 – – – – – – – – – 47102 5064 3626 5140 4519 (1614) (711) 192 204 185467 21030 15796 33191 29829 591 5 7288 4968 – – – – – – – – – 185467 21030 15796 33191 29829 591 5 7288 4968 236065 – 236065 54741 (18059) 36682 1680 4389 30613 2038 32652 – (13) 32665 As on 31/03/08 85533 58284 143817 30503 44272 74775 42213 4479
....................................

External Sales

Inter-segment sales

Total Revenue

RESULT

Segment result

Unallocated corporate expenses

Operating profit

Interest expense (Net of Interest

Income)

Income Tax(Current + Deferred)

Profit from ordinary activities

Other Income

Net Profit

Exceptional item

Minority Interest

Net profit

OTHER INFORMATION

Segment assets

Unallocated corporate assets

Total assets

Segment liabilities

Unallocated corporate liabilities

Total liabilities

Capital expenditure

Depreciation

SECONDARY SEGMENT

Dabur India Limited | Annual Report 2008-09

Consolidated Financials as per IFRS

As the company also exports, the secondary segment for the company is based on the location of customers. Out of the total sales of Rs. 283411.14 (239628.74) the export sale is Rs 18457.43 (Rs. 32499.57)

159

The reconciliation of net income as per Indian GAAP and IFRS (EU) (Rs. in Crores) Particulars Audited for the Year ended on 31.03.2009 391.21 0.10 0.09 0.13 0.32 391.53

Consolidated net profit as per Indian GAAP Add: Difference for (a) Stock Option amorisation (b) Technical knowhow fees written off (c) Total Less: Difference for (a) Depreciation (b) Deferred tax Consolidated net profit as per IFRS ( EU) Profit on reinstatement of Long Term Loan

5.38 (1.77) 3.61 387.92

160

....................................

Dabur India Limited | Annual Report 2008-09

Consolidated Financials as per IFRS

Notes to Consolidated Financial Statement Compiled under IFRS applicable to European Union for the year ended 31.3.2009
(All amounts in Indian Rupees in lacs, except share data) 1 Business combination: Dabur India Limited (DIL) along with it’s subsidiaries (collectively known as Group) situated in India and abroad constitutes a FMCG Conglomerate. The company was incorporated on 16th September 1975 with the object of manufacturing and marketing FMCG, Ayurvedic & Pharmaceutical products. The pharmaceutical division of the company was demerged from the existing entity on 1.4.2003. DIL has manufacturing facilities in eight States of India. The group companies presently have manufacturing facilities in eight countries, namely India, Bangladesh, Nepal, Dubai, Sarjah, Ras-Al-Khaima, Egypt & Nigeria. Major markets of the group include India, Middle East, Nepal, Bangladesh, USA and UK. The growth of the company has been phenomenal since early ninety rarely shared by any other FMCG company in this subcontinent. The consolidated financial statements include the financial statements of DIL and its subsidiaries. An entity in which DIL has directly or indirectly, through other subsidiary undertakings, has taken a controlling interest or is in a position to control composition of directors is classified as a subsidiary. All material inter-company accounts and transactions have been eliminated on consolidation. Consolidated herein are the group companies (all engaged in FMCG business) whose particulars are furnished below :Name of Subsidiary Dabur Nepal Pvt Ltd Dabur (UK) Ltd Dabur International Ltd Weikfiled International (UAE) Ltd, * H&B Stores Ltd Dabur Egypt Ltd African Consumer Care Ltd Asian Consumer Care Pvt Ltd Asian Consumer Care Pakistan Pvt Ltd Naturelle LLC Country of incorporation Nepal British Virgin Island Isle of MAN United Arab Emirate India Egypt Nigeria Bangladesh Pakistan Emirates of Ras Al Khaima Shareholding 97.5% by Dabur International Ltd 100% by Dabur International Ltd 100% 38.41% by Dabur International Ltd 100% 76% by Dabur (UK) Ltd & 24% by Dabur International Ltd 90% by Dabur International Ltd & 10% by Dabur (UK) Ltd 76% by Dabur International Ltd 99.99% by Dabur International Ltd 100% by Dabur International Ltd

*Control on composition of Board of Directors by parent company arises d’etre of subsidiary status. Since the date of transition from Indian GAAP to IFRS meant for EU is 1.4.2006 and the practice of preparation of consolidated financial statement (CFS) under pooling method has been in vogue since much longer period under Indian GAAP, the stipulation of IFRS-3 laying down purchase method of incorporating consolidated accounts had to be done away with for business combination lasting since before transition date. However purchase method has been applied for consolidation / merger of any new entity or change in business combination of existing entities forming the group. First time adoption of International Financial Reporting Standards (IFRS) : The group had adopted IFRS as applicable to European Union (EU) with effect from 1st April 2007 with a transition date to 1st April, 2006. Consequently, the various heads of accounts including stockholder’s equity under Indian GAAP have been duly recast so as to conform to exigencies of IFRS-1. 2.1 Stockholder’s equity. Share premium, other reserve and minority interest as on 31.03.09 2.1.1 (a) During financial year 2008-09, 1053276 number of equity shares of Re. 1/- each of DIL have been issued to employees against exercise of stock option thereby raising equity base of stock holders by INR 10.53. (b) Fair Value of Grant of Stock option under Black Schole method amortised during the year 2008-09 works out to INR 705.24 (excluding FBT of INR 363.17). 161

2.

(All amounts in Indian Rupees in lacs, except share data) 2.1.2 Consequent upto of making share based payment as discussed in preceding paragraph, fair value of premium component of equity share issued on exercise of option by the beneficiaries during the year determined on BLACK SCHOLES Model aggregating INR 153.91 has been charged off to Stock Option reserve with corresponding credit to share premium account. 2.1.3 Share of loss of INR 40.76 of minority stake holders for financial year 2008-09 has been debited to minority interest account. 2.1.4 Incremental unrealized gain (net of deferred tax) towards readily marketable equity securities held for sale amounting to INR 71.35 has been charged off to Comprehensive Total Income. Similarly Exchange translation loss of INR 82.00 have been credited to Comprehensive Total Income. 3. Basis of Presentation and use of Estimates : The accompanying CFS include Dabur India Limited and its subsidiaries and are prepared in accordance with accounting principles generally accepted in IFRS applicable to EU. The preparation of consolidated financial statement in conformity with IFRS requires management to make estimates and assumption. These estimates and assumptions affect the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual result could differ from these estimates. The management’s estimates of charge back rebates, discount, returns and the useful life of tangible, impairability of fixed assets, treatment of goodwill and intangibles with estimable lifespan, realization of deferred assets present sensitive estimate in particular. Foreign Currency Translation : Functional currency of DIL is in Indian rupee (INR) in which the group accounts have been presented. The accompanying financial statements are reported in INR accounted for under re-measurement method. Monetary assets and liabilities of Overseas group Companies are translated in INR at the appropriate year end exchange rates. Income and expenses are translated using monthly average exchange rate in effect during the year under report. The result of translation adjustment are recorded as component of other comprehensive income. Fixed assets and equities have been accounted for in terms of exchange rate ruling on the date of transaction. Total exchange loss during financial year 2008-09 was INR 82.00 which has been accounted for as comprehensive total income. Relevant loss INR186.15 is net of gain on account of translation of financial instrument (accounts receivable and accounts payable) in reporting currency. Taxation : Taxation is that chargeable on the profits for the current period as Foreign and domestic taxes together with deferred taxation. Deferred taxation is provided in full using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. Deferred tax is provided on temporary differences arising on investments in Group undertakings, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that it will not reverse in the foreseeable future. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. As envisaged under IAS 12, deferred tax assets and liabilities are not discounted. Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date. The Fringe Benefit Tax is included as part of the related expenses which give rise to such tax. Research and Development : Research expenditure is charged to income statement in the year in which it is incurred. Development expenditure is charged to income statement in the year it is incurred, unless it meets the recognition criteria of IAS 38 on Intangible Assets. Impairment of Assets : Assets are reviewed for impairment whenever events indicate that the carrying amount of a cash-generating unit may not be recoverable. In addition, assets that have indefinite useful lives are tested annually for impairment. An impairment loss is recognized to the extent that the carrying value exceeds the higher of the asset’s fair value less costs to sell and its value in use. A cash generating unit is the smallest identifiable group of assets that generates cash flows which are largely independent of the cash flows from other assets or groups of assets. At the acquisition date, any goodwill acquired is allocated to the relevant cash generating unit of group of cash generating units expected to benefit from the acquisition for the purpose of impairment testing of goodwill. Inventories : Inventories are stated at the lower of cost and net realizable value. Cost is based on the weighted average cost incurred in acquiring inventories and bringing them to their existing location and condition, which will include raw materials, direct

4.

5.

6.

7.

8.

162

. The cost and the accumulated depreciation for assets sold..... Estimated cost of sale is reduced from carrying amounts of assets when the same is held.. 10. No further depreciation is provided after the asset become idle whether on the ground of temporary suspension of use or poised for sale. (ii) The company during the year has entered into an agreement with shareholders collectively holding controlling interest in Fem Care Pharma Ltd (FEM). a domestic listed company for acquisition of their shares (72. Net realizable value is the estimated selling price less costs to completion and sale.... is treated as advance against share.03. plant & equipment aggregating INR 218. Investment held for long term in securities where significant influence exists are values at fair value. Goodwill : Goodwill arises out of consolidation of subsidiaries or merger of body corporate with group companies being the excess of value of investment over proportionate stake in net assets of subsidiaries/merged entities in terms of book values which are indicated in the consolidated balance sheet. Intangibles (Patent and Software) : Patents. Assets under capital leases and leasehold improvements are amortized over the lower of their estimated useful lives or the term of the lease.. Pending approval of the transfer formalities the value of stake paid and kept to the escrow account... Plant and Equipment : Property. 11. plant and equipment are stated at historical cost less accumulated depreciation. except share data) labour and overheads. 12. net of related tax effect are reported as a separate component of stock holder’s equity in comprehensive total income until realized. Realised gain or losses on sale of securities are computed with reference to their weighted average cost..... is recognized as income.. losses and decline in value on non-readily marketable availablefor-sale securities that are judged to be other than temporary. being indefinite lived intangible assets. plant and equipment not put to use before such date are disclosed as “capital work-in-progress”. while costs for repairs and maintenance are charged to operations as incurred. where appropriate. 13. Property.. Short term readily marketable securities are held at market price at period end. Realised gains.. The company has so far incurred INR112 towards cost of proposed acquisition in making the total investment of INR 20484. Goodwill is not amortized but subjected to periodic impairment test... The useful life considered is 5 years. The Group Companies have determined the estimated useful lives of assets for depreciation purposes.. The interest benefit of deposit in escrow account accruing thereon INR581 is not accounted for due to absence of beneficial right therein. Goodwill of business combination.09 9... Type of Assets : Estimated useful life for charging depreciation : Leasehold Land 20 years Buildings 10-15 years Plant and Machinery 6-15 years Furniture and Fixtures 10-15 years Office Equipment 15 years Vehicles 5 years Property.15% of total share capital subscribed and paid up therein) at a consideration of INR 20372 subject to approval of transfer by appropriate authorities.... Expenditure for additions and improvements are capitalized.. plant and equipment outstanding at the balance sheet date and the cost of property. are included in the statement of income. in the investment category.. if works out to negative.. Depreciation is calculated on the straight-line method over the estimated useful life of the respective assets in terms of IAS-16... which are consistent with the provision of IAS-32 & 39. for disposal. Advances paid for the acquisition of property. retired or otherwise disposed of are removed from the amounts disclosed in the balance sheet and the resulting gain or loss is included in the Consolidated Statement of Income. Interest and dividend income is recognized when earned. Unrealised gain and losses.18 are mortgaged/hypothecated to bank and financial institutions towards security on loan. Investment Securities : (i) The Group Companies follow investment policies. are periodically subjected to impairment test.. Software is amortized over the useful lifetime of the asset on straight-line method subject to periodic review of utility. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs. Financial Instruments : Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the 163 ... Assets held & used 31.35..

the fair value on date of grant reflects these conditions. Defined benefit plans relate to Gratuity.5 Employees are entitled to post retirement benefit under defined contribution plan and defined benefit plan. Interest has been accounted for on time proportion basis. the resultant exchange loss on account of Foreign Exchange is added to the borrowing cost and the same is capitalized if the loan is taken for acquisition of the qualifying assets. Leave Salary and retirement benefits of Directors. Royalty is provided for accrual basis based on agreement of receipts option as per IAS-18. 17. The segment report has been furnished on the basis of reportable industries segment. It has one joint venture which has not been considered as entire investment therein has already been provided for and investment thereon is negligible. except share data) relevant instrument and derecognized when it ceases to be a party to such provisions.1 Customers of the Group Companies consist primarily of large wholesalers and dealers network who sell directly into the retail channel. damaged product returns. on discontinued operation is disclosed separately. If not. the same has not been furnished. food business and others. if material. basic earning per share is computed using the weighted average number of common shares outstanding during the period. Revenue Recognition : 17. Such assets and liabilities are classified as current if they are expected to be realised or settled within 12 months after the balance sheet date. Such costs are capitalized in terms of the criteria in Revised IAS-23. Royalty. The group does not have any associates. Besides taxes/duties incidental to sale are recognized as a reduction from product sale revenue. The net deficit or surplus for each defined benefit scheme is calculated in accordance with IAS-19 based on the present value of defined benefit obligation at the Balance Sheet date less fair value of the scheme assets.4 Segment Report : Segment Report has been drawn in application of IAS-14. Dividend : Dividend is recognized at the point of declaration of Dividend by investee entity. The fair value determined at the grant date of the equity settled share based payments is expensed over the vesting period.2 Interest. 15. 16. they are classified as non-current financial instruments are classified in conformity to the provision of IAS-32 and IAS-39. Certain charge backs and rebate programmes extended to customers pursuant to industry standards are recognized as a reduction from product sales revenues. Regarding geographical segment since export sale to un-affiliated customers do not exceed 10% of total sale. construction or production of qualifying assets. Earnings per share : In accordance with IAS-33. The Group operates both defined benefit and defined contribution schemes. Revenue from product sales is recognized when the merchandise is sold or shipped to customers and all four of the following criteria are met : (i) persuasive evidence that an arrangement exists (ii) delivery of the products has occurred. consumer health business. 17. based on the group’s estimate of awards that will eventually vest. whereas earning per share vesting conditions are reflected in the calculation of awards that will eventually vest over the vesting period. For plans where vesting conditions are based on total shareholder returns. Where the interest rate of the borrowing is less than the commercial interest rate prevailing in the local currency borrowing. (iii) the selling price is both fixed and determinable and (iv) collectibility is reasonably assured.(All amounts in Indian Rupees in lacs. Equity settled share-based payments are measured at fair value at the date of grant. Diluted earning per share is computed using the weighted average number of common and diluted common equivalent shares outstanding during the period. 14.1 Earning / (loss). 17. Major industrial segment include consumer care business. Provisions for sales discounts. When the borrowing costs are directly attributable to the acquisition. “Earning per Share”. Fair value is measured by the use of the Black Scholes option pricing model. 16. Share-based Payments : The Group has equity-settled share-based compensation plans.3 Borrowing Costs : The borrowing costs as per IAS-23 on the bench mark treatment that borrowing costs could be recognized as expenses in period in which they are incurred. 17. 17. exchange for expired product are established as a reduction of product sales revenues at the time such revenues are recognized. Advertising Cost : Expenditure on advertising is expensed when incurred. 164 .

.07 165.26 Cash equivalent represent deposits placed with Banks in the normal course of business operation. 20. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs... Cash & Cash Equivalent : Cash & cash equivalent comprises following: Cash in hand Remittance in transit Balance with scheduled Bank Balance with non-scheduled Bank Fixed Deposit Accounts Total 2009 36...42 165 ...42 30248.for financial year ended 31.41 (INR 7231. based on present and prospective financial condition of the customer receivable after considering historical experience and the current economic environment on case-to-case basis. Inventories : Inventories comprises of the following :Raw Materials Packing material.40 6888.48 (including tax of 1101.. A contingent asset as per IAS-37 is a possible asset that arises from past event and whose existence will be confirmed only by occurrence or nonoccurrence of one or more uncertain future event not wholly within the control of the entity...79 14842. 19.... the same is disclosed by way of note in financial statement.. stores & spares Stock in progress Finished goods Total 2009 11786.02 3256...21 11249...74 13466.. The directors of the parent company have recommended dividend amounting to INR 10120.. 23... net of allowance for doubtful account of INR 1477.. Contingent liabilities are not recognized but disclosed in the financial statement.74 37546. 2009..02 575..00 7518.31) has been taken in the retained income.43 8. Contingent Liabilities.55 2008 46.. Reconciliation of Weighted Average Equity Outstanding Basic vis-à-vis diluted : i) Weighted average number of basic shares 864907642 ii) Additional right on equity share arising under grant of option under ESOP exercisable on future dates 4248887 iii) Weighted average diluted equity share outstanding 869156529 21.. provision is made therefor in terms of its discounted present value of obligation.94 5513.. However when past event occurred with resulting possible obligation for which it is likely that there will be a transfer of benefit and reliable estimate can be made for the amount of the obligation.46 135. Balance with non-schedule bank is net off bank overdraft.74 3628.72 (including INR 1102. Further DIL has paid interim dividend of INR 7590. 22.19 6111...65 on account of tax thereon) during & for financial year 2008-09 which has been duly recognized as distribution of profit. The group companies maintain an allowance for doubtful debts on accounts receivable.. Contingent Assets are not recognized unless realization of income is virtually certain.41 0.2009 not being recognizable under IFRS as laid down in IAS-10 but provided as per requirement of Indian GAAP has been maintained in the Retained Earnings. except share data) 18..97 previous year).3.18 6182... Accounts Receivable : The Accounts receivable is stated net of allowance for doubtful debts.08 (INR 745. Total account receivable as at March 31.85 2008 9131. However. Contingent Assets and Contingent Provision : Contingent liabilities as per IAS-37 is possible obligation that arises from past event and whose existence will be confirmed on occurrence or non-occurrence of one or more certain future events not wholly within the control of the entity or present obligation that arises from past events that is not recognized because it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation or the obligation amount cannot be measured with sufficient reliability..96 (including dividend tax INR 1470.. The final dividend of 2007-08 of INR7581.32 11974.40 previous year) amounts to INR 17788.20) per share INR 1/..

59 (26021. Property.21 2253. a domestic listed company for acquisition of their shares (72.83 2008 1066.36 2008 12761.54 1524.46 11878.01 previous year).90) 51187.55 were sold.31.31 20033. the beneficial interest thereon accruing in favour of transferor of shares.75 166 .39 33942. vehicle.25 4005.48 2009 16716.32 4515.(All amounts in Indian Rupees in lacs.89 1128.62 39205.69 1608. Other Current assets : Other current assets comprise of the following : Advance payment of Tax Advance to suppliers Advance to employees Balances with excise authority Other advances recoverable in cash or in kind or value to be received Total 25. INR 641.15% of total share capital subscribed and paid up therein) at a consideration of INR203. INR 693.96 1905.07 1542. furniture & fixture and computer costing INR 1556.34 3651.74. Plant & Equipment Comprise of the following : Freehold Land Leasehold Land Building.73 68234.12 Crore towards cost of proposed acquisition.75 64.56 20264.71 371.72 23579.89 3540. The depreciation expenses relating to Property. Pending completion of transfer of shares.00 63.70 300. Plant and Equipment for the year is INR 4720.46 & INR 305.00 189. the consideration amount has been retained in an escrow account specifically designated for the purpose. Plant & Equipment: Property.25 80937.71 5933.73 Crore subject to approval of transfer by appropriate authorities. b) (i) Investment readily available for sale Readily marketable equity securities: Cost of the Investment Gross unrealized holding gain in accumulated other comprehensive income Carrying Value Nil Nil 1.21 During the year plant & machinery.78 (4320.57 2485. except share data) 24.10 72. Accumulated depreciation thereon aggregated INR 982. In addition to consideration money the company has so far incurred INR1.11) 42213.05.42 4434.73 (29749. 26.95 22701.55 2872.69 1138.88 20453.26 17997. appearing in investment schedule as advance against shares of Fem Care Pharma Ltd. Roads & Culverts Plant & Machinery Vehicles Furnitures & office Equipment Computers Capital Work in Progress Total Gross Block Less: Accumulated Depreciation Net Block 2009 1513. Investment: 2009 a) Current Investment: Cost of the Investment Gross unrealized holding gain in accumulated other comprehensive income Carrying Value 11806.93 1909.98 2008 The company during the year has entered into an agreement with shareholders collectively holding controlling stake in Fem Care Pharma Ltd (FEM).

2005. Entire goodwill on consolidation discussed in ‘b’ & ‘c’ above along with INR 10. On April 01.24 .00 1459.44 576.... Excess of consideration money over the net asset value of the investee entity amount to INR 562. 2003. Balsara Home Products Ltd.25 0. d) As on April 01.96 2190...00 0.00 2993.. the parent company acquired 38. contributed to additional goodwill of INR 632.05 NIL 106.00 1459.. the parent company acquired 100% stake in Dabur International Limited by way of acquiring 100000 numbers of shares therein at a consideration of INR 2287. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs.50.13 16155.29 272.25 2008 2004. The merger. joined the group after DIL acquired directly or indirectly 99.13 16155...06.37 2312.05 Nil 22917.. three entities. Other non-current assets : Other non-current assets include security deposits and those segment of current assets.. 2003. were merged with DIL.20.. the excess of consideration money over proportionate net asset of these entities were treated as goodwill.35. and Besta Cosmetics Ltd.... 100% and 100% stakes in respective entities at aggregate of consideration of INR 16345.....35 has been accounted for as Goodwill.44 b) c) 28.83 1472....13 Nil 22917.84 32. which are not due for realization within a period of one year.. Balsara Hygiene Products Ltd.92 2008 1112..23 in CFS which has been carried in balance sheet and is subjected to due test of impairment.44 Nil 106.00 138.. Details of intangible assets (Patent & Software) : Patents Software Less: Amortisation Total 29.87 1199. Balsara Hygiene Products Ltd.89..39 167 2009 1112.87 1654. 17614.30 of goodwill inherited from Balance Sheet of subsidiaries were impaired subject to due test of impairment during reinstatement of account in IFRS. Excess of consideration money over the net asset value of the investee entity amounting to INR 825.40 has been accounted for as Goodwill.52%.. These companies accounts were consolidated herein upto previous financial year on the basis of three separate financial statements as subsidiaries of DIL... Said Goodwill was impaired subject to due loss of impairment during course of reinstatement of account to PFRS as on 1. except share data) (ii) Readily marketable debt securities (Gross unrealized holding gain INR Nil) (iii) Not readily marketable equity securities: Cost of the Investment Gross unrealized holding gain in accumulated other comprehensive income Carrying Value 27.48 1077. On September 14..13 2008 17614.. Goodwill : 2009 Gross Goodwill Cumulative impairment provision Net Goodwill Components of Goodwill : a) On September 14..55 2175.41% stake in Weikfield International UAE Limited by way of acquiring 615 numbers of shares amounting to INR 356.4. 2006...... Balsara Home Products Ltd and Besta Cosmetics Ltd. Security deposits with various authorities Advance to employee Fixed Deposit Total 2009 2993. INR 15582..

Accrued expenses & other current liabilities : Accrued expenses & other current liabilities comprise the following : Ge Capital Services Bonus Creditor for expenses & other liabilities Advance from customer Security Deposit from dealers Interest accrued but not due on loans Investor education and protection fund Total 2009 218. 66.00% Stock. leasehold (UAE) Ltd ABN AMRO Bank property. movable properties & Nepal Ltd guarantee by Dabur India Ltd Asian Consumer Care P Ltd Standard Chartered Bank & 630.86 20531.00 80.31 8.84 a) The agreement with dealers are renewed from time to time and the dealers security deposit is treated as current liabilities on this reason.63 11.12). 608. book debts.15 8. book debts. Borrowing : Short Term Debt (including current portion of long term debt) working capital and short term loan from banks comprises following : Name of entity Name of Bank Amount in INR Rate of interest Nature of security per annum Dabur Nepal Pvt Ltd Standard Chartered Bank 3599. SCB. except share data) 30.88 11. ABN & HDFC Dabur India Limited ICICI Bank Ltd 8000. INR 7374.41 Forum 1 Aviation Limited 714.00% Dabur India Limited The Hongkong & Shanghai Bank 2000.29 African Consumer Care Ltd 27.82 35.25% Dabur India Limited Yes Bank Ltd 2000.00 7.14 33316.18 0 32391.00 (PY INR 24728.13 Dabur International Limited Deposit of Directors & Co. equipment & personal guarantee of one director Naturelle LLC ABN AMRO 3287.99 117. equipment & personal guarantee of one director Weikfiled International Standard Chartered Bank & 170.00 7.01 Total 22192.00% Dabur India Limited Barclay Bank Ltd 1000.93 278.00% Stock.61 31.00% Stock.27 (PY.25% Dabur Nepal Pvt Ltd Deposit of Directors 48. leasehold ABN AMRO Bank property.56) comprise trade creditors for goods & services which include notes payable of INR 4527. movable property plant.43 20922. 168 .(All amounts in Indian Rupees in lacs.86 Libor+1.50% Asian Consumer Care Pakistan Pvt Ltd 39.94 5.00% Stock & book debts SBI.07 2008 0. movable property plant.61 0.00 8.00 31.5% Movable properties & guarantee by Dabur India Limited Short Term Loan Dabur India Limited Consortium of IDBI.09 296. Trade Accounts payable : Trade accounts payable of INR 13612.85 256. 32.00 7.

169 .82 9.. Movement of other Reserve : Particulars As on 01.12 456.38 Rate of interest 11% Nature of security Movable & immovable assets Repayment Terms Quarterly 2009 477..54.82 22478.. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs..82 65.27 5492...e...38 146...49 16508.79 (+) 0. Other non-current liabilities : Leave salary Housing.49 127..16 21230.45 2008 161. gratuity & other welfare Taxation Deposits others Total 33..58 2008 370.....48 (+) 0. towards exercise of stock option by minority... Common Stock has been enhanced during the year by INR 10.09 1560.77 18516. Standard Chartered Bank Amount 212...21 Disclosed amount in the Long Term Debts from Financial Institution and bank remain at Fair Value when considered in the context of fair value of return on long term loans in the country..89 404..93 2009 202..54 12804.07 Capital Reserve Employees Housing Reserve Legal Reserve Other Revenue Reserve Total Other Reserve 2193.79 9. except share data) 32A.36 53.60 456. Bank/Inst.. Equity Share of INR 1/...03 64.. excluding Current portion : Name of entity Dabur Nepal Pvt..each Shareholders enjoy voting power in accordance to the number of Equity Shares held by it.44 (+) 1210.. b) Employees Stock Exchange option : Non-cancelled component of additional paid in share net-off quantum remaining unamortized shown separately under retain additional paid-in capital. Long Term Debt.. Minority Interest : Stock holder’s equity Share Premium Other Reserve Retained earning Total 34. 35. Ltd.03.38 138. 36..21 19726.55 445..04..92 21809.91 Utilised for Transition Provision 0 0 0 0 0 As on 31.29 19748. Stockholders’ Equity : a) Common Stock DIL has only one class of common stock i.08 Transfer from Retained Earning (-) 633.41 6572..51 Revenue reserve includes consolidation reserve and merger reserve accumulated since years back which are not specifically quantifiable because of adoption of pooling method for the purpose of consolidation and merger for reason discussed in Business combination in note 1..41 (+) 578..68 1. the borrowing relates to.

98 11.276 Options lapsed/cancelled 5.90 762.32% Rs.53. 6.53.031 55.24.(All amounts in Indian Rupees in lacs.95.140 28. 5. 9.43 681. 115.60 1 to 5 years 14.22 170 . 7. 56. The ESOP is administered by the Management Committee of the Board (‘the Committee’). 112.770 None 61. Nos. which provides for grant of stock options in DIL to eligible management employees of group companies.74.01.276 Options exercised 10.39 733.22 280711.276 Total number of shares arising as a result of exercise of option 10.53. 94.63. For the year 5. 4.276 Total number of options in force 39.26.48 12. except share data) 37.79.381 61.09 Rs. 2.140 39. Exercise price of option is the fair value of shares on grant date.558 3.24 on Profit & Loss account with corresponding rise in Stock Option Reserve account in balance sheet Number of Options granted Pricing formula Black Scholes Pricing Cumulative 1. 10.95.01.407 Rs. The criteria for granting options are essentially on the basis of the management grade of the employee.53.99 32499. Employees Stock Option : The parent company has an Employees Stock Option Scheme (ESOP).61 2008 202336.472 Each option carries the right to the holder to apply for equity shares of the company at par Options vested 10.21% 2.57 18457. 38. 2009 2008 Outstanding at beginning of the year 5073660 6124608 Granted 563472 529426 Exercised 1053276 1139165 Cancelled 588449 441209 Outstanding at the end of the year 3995407 5073660 Particulars of disclosure regarding share based payments : 1.407 Weighted average exercise price (per option) weighted average fair value of per option : (per intrinsic value method) (per black scholes model) The fair value of each option is estimated using the Black Scholes model after applying the following weighted average assumptions : -Risk free interest rate -Expected life -Expected Volatility -Expected Dividend yield -Price of underlying shares in the Market at the time of option grant Share based payment led to charge of INR 705. Revenue: 2009 Domestic sales less returns Export sales Subsidy Sale of scrap Total 260839.99. 8.77 236065.57 465.88. 6.449 Variation in terms of options None Money realized by exercise of options INR 10.

35 129437...69 16919.93 -1500..75 10798.38 0.38 44715.28 2038.68 -131..77 8121. Personnel Expenses: Directors’ remuneration Salaries & benefits ESOP Employees Total 2009 1485...77 1496..13 77.66 10.03 8576..03 3256. General & Administrative expenses: Rent Rates & Taxes Insurance Freight & forwarding charges Commission .00 16..75 179..24 2382.07 1772.80 2008 713..73 451. Other Income: Rent Realised Misc Receipt Profit on sale of investment Royalty Profit / loss on sale of fixed assets Total 40.67 29554.03 338..62 -3975.38 0...64 1143.25 850.. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs.97 469.55 9857.79 15902.. Cost of Revenue: Row Material consumed Packing Materials consumed Purchase of Finished goods Increase(-) / Decrease in stock in process & finished goods Manufacturing Expenses Patent write off Workmen & staff welfare Total 41.81 2008 19..28 2008 1522.95 11874.03 1665.11 1068...53 1005....22 348.76 2088.65 9668.65 415. Discount Advertisement & Publicity Travel & Conveyance Telephone Legal & Professional Telephone.40 1165.66 2009 81400.08 2008 56898.63 2720. except share data) 39....22 258....10 4516..74 18.20 122.62 518. Selling..44 7942.18 73.87 13.26 60047..44 984.83 38741.35 2009 8.14 12410.63 75.74 491...41 11.77 250.23 171 .70 34325.00 55068... fax expenses Security expenses General expenses Directors fees Auditors’ remuneration Donation Contribution to scientific research expenses Bad debts Provision for contingent liability Fixed Assets written down Total 42.73 436.77 9917..62 9685.63 2009 2204.68 364.82 8187.46 745.21 160852.00 498.

83 2008 576.55 1361. Fair value of financial instruments : The company uses the following methods and assumptions to estimate fair value of each class of financial instruments for which it is practicable to estimate fair value.03 4479. Financial Expenses: Fixed period loan Others Bank charges Total 44.97 20520. For other investments. Plant & Equipment (Note 35) Amortisation of Software (Note 28) Total 43. Accounts payable – The carrying value of accounts payable proximates fair value due to the short term nature of obligations.46) for Asian Consumer Care Pvt.27 600. Estimated fair values of the Company’s financial instruments are as follows : Cash & cash equivalent Accounts receivable Investment for which : Practicable to estimate fair value Non-practicable to estimate fair value Accounts payable Long term debts 45. Investments – The fair value of some investments are estimated based on their quoted market prices.36 785.(All amounts in Indian Rupees in lacs.61 2009 969.00 24728. cash equivalent and restricted cash – The carrying amount proximates fair value because of the short term maturity (upto months) of such instruments.74 (previous year INR 138.35 2008 4320. for which there are no quoted market prices.04 172 . Long term debt – The fair value of debt of the company is estimated based on quoted market prices or current rates offered to the company for same or similar debt.95) for Asian Consumer Care Pakistan Ltd and INR 197. The carrying value of material long term debt approximates its fair value. except share data) 42A.07 503..57 5024. and INR 32. a reasonable estimate of fair value could not be made without incurring significant costs.69 565.07 (previous year INR 5.68 (previous year INR 76.76 17788. Bangladesh.56 22917.59 (previous year INR 11.38 2008 7518.01 159. Depreciation & Amortization: Depreciation on Property.17 105.00 212. Accounts receivable – The carrying amount proximates fair value due to their short term nature and historical collectability. Ltd.29) for Dabur Egypt Ltd and INR 6.89 2009 4720. 2009 3592.78 2320. Cash.55 1679. Income Taxes: Current Tax expenses includes foreign income tax provision of INR 2.05 13612.41 11878.33) for Dabur Nepal Pvt.78 303. Ltd.26 17231.

Khan. a joint venture partner and INR 59. Mr P.11 0. Services received amounting to INR NIL (previous year INR 26.90 (Balance as on 31. Anup Sharma.57 130..12 )...46 59. Mohit Burman. Mohd.... Mr. Pradip Burman. a joint venture partner. Mr. Bangladesh..13) Interest paid on loan taken from director amounting to INR 4. Bangladesh. Gaurav Burman.41 2008 1445.Burman.00 8.35 a) Deferred Tax recognized on temporary difference which arise when non-monetary items of any entity is located at Functional currency but taxable profit is indexed at different currency. Bangladesh.C. Mr.46).85). Saket Burman. j. Mr. Rent paid INR NIL (previous year INR 10. Mr.24). Payment to post employment defined benefit plan INR 1463. Exgratia and Pension to relative of Key management personnel INR NIL (previous year INR 200.00 8.79 -1205.20 (previous year INR 11.00 2369. Deferred Tax Liability (Current) Current investment Total Deferred Tax Liability (Current) E.35) to ACI Ltd. e. Mr...81 36. Mr.81 45. f. k...87) to Key management personnel.00 (previous year INR 2. Amit Burman.. Mr.00 2193.49 (previous year 7971.67 -625. Director Fees INR 10. c. 173 Note : i) ii) .79 -766.. Siddarth Burman. Sundar Krishnan.. 125. Deferred tax liability (Non-Current) Depreciation of Plant & equipment Long term investment B. 47.09 176. R. Loan given to Key Management Personnel INR NIL (previous year INR 7..62 36..S.21 0.04) from ACI Ltd.93 (previous year INR 1002. Sunil Duggal... Deffered tax assets (Non Current) VRS payment Service Benefits Longterm Investment Technical know how fees Provision for contingent Liability Provision for Doubtful debts Total Deferred Tax Assets (Non Current) C. Peter Baker.09 INR 7072.... The break-up of deferred tax liability/benefit: 2009 A.. Share based payment to key management personnel (ESOP) INR 287..51 132. b. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs..03).78).09 140.. d. Mr..81 45.03. Total Deferred tax liability (C-F) 1582. Narang.54 1576.51 168. Relatives of key management personnel include Mr V. Mr.12 Key Management personnel include Mr. Sale of goods of INR NIL (previous year INR.35 2741.81 36... A C Burman and Mrs Asha Burman.13 (previous year INR 48. Sikandar Nawaz..11 0.73 -1028.. and Associates in which a key management personnel exercises significant influence. Sarabjeet Singh. Total Deferred tax assets (Current) G. except share data) 46.57 130. Loan taken from director amounting to INR 48. Rana.. Remuneration to key management personnel INR 1382.. Repayment of Loan INR 3.71 304. Mr. Mr.54 1713.46 2201. Deferred tax assets (Current) Service Benefits Disallowance F.. a joint venture partner..00) received from Welltime Housing & Finance Ltd.56 36. i.D.21) to ACI Ltd. Mr. all directors of group companies. Related party transaction : a.09 (previous year INR 3.36 (previous year INR 47. h. Deferred Tax Liability (A-B) D.21 0... Mr.. g...

The Hon’ble Supreme Court of India had concurred with the order of the District Excise Officer. 174 .00 0.02 1.95.65 18.93 3159.00 0.64 0. Management believes that these claims taken individually or together. now known as SBI Limited. pursuant to the decision of Hon’ble Supreme Court in this regard.75 10.00 6653.69 0.11 2763. against the company and Sharda Boiron Laboratories Limited.81 0. Ghaziabad. Necessary adjustments in respect of recovery/refund will be made as per the arbitration proceedings. except share data) 48.00 1478.93 4124.50 8.64 paid by the company to Excise authorities on behalf of Sharda Boiron Laboratories Limited. The Company had filed the review petition before Division Bench of the Hon’ble Supreme Court of India.73 2009 667.01 6683.15 1. The matter is pending before Hon’ble High Court of Delhi for the appointment of an arbitrator.00 1615.00 3802.94 Guaranteed party HDFC Limited HDFC Limited HDFC Limited HDFC Limited HSBC.02 7786.90 131. National Societe Generale ABN Amro Bank ABN Amro Bank Hongkong Bank Hongkong Bank Punjab National Bank IDBI Bank Ltd ICICI Bank Ltd Nepal Arab Bank Ltd Standard Chartered Bank None of the parties favoring whom guarantee have been furnished is related party.13 raised by the District Excise Officer.00 0. fiscal assessments and litigation arising in the ordinary course of business.28 2008 271. will not have a material effect on the financial statement of the company.00 258. in respect of excise duty demand of INR 68. the recovery proceedings have been initiated by the company against Sharda Boiron Laboratories Limited for INR 48.20 74. Other contingency & capital commitment : a) The group company is involved in certain claims. List of contingencies are as follows: Claims not acknowledged as debts in respect of Guarantees furnished Current Non Current Bills purchased/discounted under letter of credit Demand for taxes pending disposal of appeal(s) In respect of capital Commitment for unexpected contract b) Break up of current guarantees furnished along with other particulars: Name of party on whose behalf guarantee issued J P Sharma Naseem Ahmed R S Saini Dabur India Limited Dabur Egypt Limited Dabur Egypt Limited Dabur Egypt Limited Dabur Oncology Plc Naturelle LLC Dabur India Limited H&B Stores Ltd Dabur India Limited Dabur India Limited Dabur India Limited Dabur Nepal Pvt Ltd Weikfield International (UAE) Ltd Carrying Amount As on 31/03/09 7.00 0.00 0. Non-current Loans and Advances includes INR 48.New Delhi HSBC Ltd.52 Fair Value As on 31/03/08 7.81 21.75 0.17 1988.25 2398.90 125. During the year 1991-92 the company has received a refund of INR 5.84 2250.01 189.06 1099. The balance amount of INR 24. Ghaziabad.50 4. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the company and as per the terms and conditions of the contract executed with them.64 by invoking the arbitration clause.95 3652.46 along with interest demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities.21 0.50 4.75 200.89 4.50 8. which was also decided against the company.(All amounts in Indian Rupees in lacs.

South Asia and South East Asian Countries. V. Defined Benefit Plan Pursuant to adoption of IAS 19 treatment of defined benefits obligations have been changed in terms of standard with the following adjustments incorporated in accounts.69 -26..20 62. none of the dealers controlling noteworthy percentage of total indigenous sale.04.00 0.2008 Past service cost Current service cost Interest cost Actuarial Gain / (Loss) Settlement Obligation as on 31.47 (2000..07 7971. 50.03. Products constituting lions share of the total revenue include Chywanprash. E. Hajmola..99 48...80 0.00 0.17 200.90 (242.55 0..39 353.72 (81.80) (212.17 200. B...35 534.18 13..76 295.98 (440..78 (212.. Fruit Juices.50 812.20 Leave Salary (funded) 557. V.. Exports are predominantly destined to West Asia. VI...17) 2683.42 38.. Expenses recognized during the period : Particulars Gratuity (funded) A.04 Leave Salary (funded) 169..26 143.49 295...39 (81. Employees post retirement benefit : A) (a) I.00 298.17) 984.90) 285.57 (2454. Change in Plan Assets :Particulars Gratuity (funded) I. D.49 Total III.71 -48.41 1463..67 0..03. except share data) 49..00 0.90 Total Reconciliation of opening and closing balances of obligations.00 0.. II. Hair Oil..00 0.04. II. IV..55 821..42 38.47 676. Fair Value of Plan Assets as on 01.08 534.16 169.54 91.20 (227.07) 1270.2009 2473.2009 969.96 Post Separation benefits of Director (un-funded) 0. Obligation as on 01.67 199.97) 246.90 359. C.43 (144.96 428.00 91.... Toothpaste and other Cosmetics etc. Honey.50) 3626... IV.68 146. III.56 Leave Salary (funded) 165.05 40..23 Post Separation benefits of director (un-funded) 4940. VII. Dabur India Limited | Annual Report 2008-09 Consolidated Financials as per IFRS (All amounts in Indian Rupees in lacs..00 1135. Particulars Gratuity (funded) I. Shampoo.02) 763.43 22.41 -147.. VI.36 Post Separation benefits of director (un-funded) 289.68) 7072.00 299.2008 Expected Return on Plan Assets Actuarial Gain / (Loss) Employer Contribution Settlement Fair Value of Plan Assets as on 31.19 111. Concentration of customer The products of the groups meant for indigenous usage predominantly find outlet through dealers’ networks widely spread across the length and breadth of the country.52 Total 175 .. II...03 53. III.71 199.97) 545. Current Service Cost Interest Cost Expected Return on Plan Assets Accumulated Loss/ Gain Total Expenses recognized during the year (A+B+C+D+E) 353.

42 which has been recognized in income statement and included in General Charges.D. Director. VIII. Recoverable value of assets of referred CGU’s have been arrived at on the basis of value in use method. All resulting exchange differences of foreign operations amounting to INR 82 has been debited to Comprehensive total income statement ( Refer Sch. VII. forming part of defined contribution plan.56 55. goodwill of Weikfield International and Balsara Group of Industries have been impaired by INR562.63 52. The estimate of future salary increase take into account regular increment.38. VI. OS-12% and SM. Investment detail of plan assets as on 31. has not been discounted as on date. APP 6% normal retirement age at 58.35 and INR15592. The basis used for determination of expected rate of return is average return high yield on long term investment in government bonds.F) . respective contribution to gross goodwill being INR 825. for the purpose of impairment.(All amounts in Indian Rupees in lacs. INR 562. Total Liabilities includes INR 33 held for disposal with reference to IFRS 5. Actuarial Assumption : Discount rate 6. 53. As per our report of even date attached For G. Goodwill has been accounted for in appropriate cash generating units (CGU’s) being represented by each of independent manufacturing units. promotional increases and inflationary consequence over price index.50% Salary escalation ratio inflation 10.40. MS.50% Estimated rate of return on plan assets 7.82 In view of the uncertainty on the date of outflow of fund towards other employee benefits. Exchange loss works out to INR 236. Anand Burman P. Life span of the CGU’s has been assessed on the basis of technical evaluation. 52. 51. Weikfield International Limited. UAE and Balsara Group. Demographics assumptions take in to account mortality factor as per LIC (1994-96) ultimate criteria. BASU & CO. except share data) IV.03. Chartered Accountants Manoj Kumar Das Partner For Dabur India Ltd. Impairment of Goodwill :Gross goodwill amounting to INR 17614. UAE.98 261.35 and INR 16226. Total Assets includes INR 33 held for sales with reference to IFRS 5. B) Defined Contribution Plan :Company’s contribution to different defined contribution plans :Particulars Provident Fund Employee State Insurance Employees Superannuation Fund 2008-09 552. No impairment is called for against any other assets of CGU’s forming part of the group. Discount factor has been assumed on the basis of market borrowing rate (6%) plus 2% against risk factor.2009 100% in reimbursement right from insurance company for fund managed by it V. 2009 176 . the liability accruing thereon. Narang Sunil Duggal A. Dr.16 300. GS 20%. employees turnover at FS 20%. Jain Chairman Whole time Director Whole time Director GM (Finance) & Company Secretary Place : New Delhi Date : 29th April.K.65 respectively being the short fall in recoverable value of CGU’s vis-à-vis corresponding carrying amount of assets.13 has arisen against consolidation / merger of Dabur International Limited.43 2007-08 562.00% Method Projected unit credit method. Based on assumption of life span of CGU’S and discount factor (applied for determination of as on date discounted value of future cash inflow of CGU’s) at five years and 8% respectively.

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