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Dabur India Ltd

S. V. Institute of Management

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Dabur India Ltd

Chapter – 1
1.1 - INTRODUCTION OF THE COMPANY
The name Dabur itself remind us its most popular brand chyavanprash for which it is so much popular. But this company is also engaged in many other business also like hair oil, soap, shampoo, toothpowder, toothpaste, health supplements & other consumer care products which are marketed under the brands Dabur, Vatika, Hajmola, Anmol and are positioned on the ayurvedic wellness platform. Dabur India was incorporated as a private limited company in 1936 by the Dabur Group to produce cosmetics & toilet preparations. It became a public limited company in 1986 after the reverse merger with Vidogum Limited. Basically the company was started as a small pharmacy in Kolkata by Dr.S.K.Burman in the year 1884. Currently, the company has nine production facilities organized around three main factories at Baddi (Himachal Pradesh), Uttaranchal and Nepal and six support factories at Sahibabad (Uttar Pradesh), Jammu, Alwar, Katni, Narendrapur and Jaipur. The company established its largest plant in Rudrapur (Uttaranchal) in the year 2004 -’05. In 2002-03, the company de-merged its pharmaceutical business in to a separate company, Dabur Pharma Ltd. And in June 2005, Dabur exited from the diary joint venture with Dabon International formed in 1996.

S. V. Institute of Management

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Dabur India Ltd From the 1st April 2006, three of Dabur's subsidiaries Balsara Hygiene Products, Balsara Home Products and Besta Cosmetics which were acquired in April 2005 were merged with it. Apart from oral care brands such as Promise, Babool and Meswak, the acquisition has also brought a range of household care products such as Odomas, Odonil, Sani Fresh and Odopic under Dabur's product portfolio.

The company has a network with over 20 lakh retail outlets across the country through more than 5,000 distributors. The company has incorporated a wholly owned subsidiary 'H & B Stores Limited' in May 2007 to foray into retail business.

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S. V. with the launch of Dabur Amla Hair Oil.Production of Ayurvedic medicines. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science. Institute of Management 4 .Dabur India Ltd 1.Established by Dr. is the limited company.2 . Dabur introduces Indian consumers to personal care through Ayurveda. The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. So popular is the product that it becomes the largest selling hair oil brand in India. made its beginnings with a small pharmacy. Dabur will continue to mark up on major milestones along the way.HISTORY OF THE COMPANY Dabur India ltd. 1949 .Launched Dabur Chyawanprash in tin pack Widening the popularity and usage of traditional Ayurvedic products continues. but has continued to learn and grow to a commanding status in the industry. And it has set very high standards in developing products and processes that meet stringent quality norms. The company history sections lists out major chronological events that happened to the company.First R&D unit established Early 1900s . S K Burman) Pvt. The ancient restorative Chyawanprash is launched in packaged form. Incorporated 1940 . and becomes the first branded Chyawanprash in India.Dabur (Dr.First production unit established at Garhia 1919 . It is itself so much famous in its field of working. Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. S K Burman at Kolkata 1896 . Ltd. As it grows even further. 1930 . Milestones to success Dabur India Ltd. 1884 . setting the road for others to follow.Automation and upgradation of Ayurvedic products manufacturing initiated 1936 .Personal care through Ayurveda.

Care with fun.Enters foods business with the launch of Real Fruit Juice S. 1994 . Dabur introduces Lal Dant Manjan. 1972 . 1979 . the most modern herbal medicines plant at that time 1984 . The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy.Leadership in health care Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel).Shifts base to Delhi from Calcutta 1978 .Launches pharmaceutical medicines 1989 .Computerisation of operations initiated 1970 .Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life.Dabur completes 100 years 1988 . Institute of Management 5 . With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses. a curative product is converted to a confectionary item for wider usage.Commercial production starts at Sahibabad. Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source 1996 . In an innovative move.Comes out with first public issue 1994 .Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands.Dabur Research Foundation set up 1979 . An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet.Dabur India Ltd 1957 .Enters oncology segment 1994 . V.

Dabur has grown from a small beginning based on traditional health care. With this. would also be part of the Pharmaceutical business S. Real becomes the fastest growing and largest selling brand in the country.Dabur demerges Pharmaceuticals business Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses.000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs. V. 2001 . To a commanding position amongst an august league of large corporate businesses. a subsidiary of Dabur India.The 1.Burman family hands over management of the company to professionals 2000 .Dabur record sales of Rs 1163.4 crore 2003 . 1998 . Across a span of over a 100 years.000 crores.Real blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices . the Company gains entry into the highly specialised area of cancer therapy. Dabur Oncology Plc. They follow FDA guidelines for production of drugs specifically for European and American markets. healthcare products and Ayurvedic Specialities. Dabur India now largely comprises of the FMCG business that include personal care products. Oncology formulations and Bulk Drugs.1. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK.a new concept in the Indian foods market.19 crore on a net profit of Rs 64. The first local brand of 100% pure natural fruit juices made to international standards. 2002 . while the Pharmaceuticals business would include Allopathic.Dabur India Ltd 1996 . Institute of Management 6 .Super specialty drugs With the setting up of Dabur Oncology's sterile cytotoxic facility.

a leading provider of Oral Care and Household Care products in the Indian market. Dabur India crosses the $2-billion mark in market capitalisation. The Board also proposed an increase in the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore. The company also adopted US GAAP in line with its commitment to follow global best practices and adopt highest standards of transparency and governance.Dabur announces bonus after 12 years Dabur India announced issue of 1:1 Bonus share to the shareholders of the company. Institute of Management 7 . a subsidiary of Dabur India.Dabur aquires Balsara As part of its inorganic growth strategy. Dabur Nepal. i. one share for every one share held.Dabur crosses $2 bin market cap. Dabur became the first Ayurvedic products company to get ISO 9002 certification. S. Dabur India acquires Balsara's Hygiene and Home products businesses.e. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation. has set up fully automated greenhouses in Nepal. adopts US GAAP. in a Rs 143-crore allcash deal 2005 . 2005 . 2006 .Dabur India Ltd Maintaining global stand As a reflection of its constant efforts at achieving superior quality standards. V. Science for nature Reinforcing its commitment to nature and its conservation.

Foray into organised retail Dabur India announced its foray into the organised retail business through a wholly-owned subsidiary. S.Approves FCCB/GDR/ADR up to $200 million Moving forward on the inorganic growth path. GDR. Dabur India decides to raise up to $200 million from the international market through Bonds. 2007 . Dabur will invest Rs 140 crores by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format. ADR.The capital raised will be used to fund Dabur's aggressive growth ambitions and acquisition plans in India and abroad. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages. and enter newer product categories in this space. The new refined modern look depicts the natural goodness of the juice from freshly plucked fruits.Dabur Foods Merged With Dabur India Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to extract synergies and unlock operational efficiencies. H&B Stores Ltd. 2007 .Celebrating 10 years of Real Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of the brand. Institute of Management 8 . QIPs or any other securities. V. 2007 . FCCBs.Dabur India Ltd 2006 .

V.K. adopts US GAAP 2006 2007 2007 2007 Approves FCCB/GDR/ADR up to $200 million Celebrating 10 years of Real Foray into organised retail Dabur Foods Merged With Dabur India S. Ltd Shift to Delhi Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 separate divisions Foods Division / Project STARS Professionals to manage the Company Turnover of Rs. Institute of Management 9 . S.COMPANY HISTORY BY YEAR 1884 1986 Early 1900s 1919 1920 1936 1972 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000 2003 2005 2005 2006 Birth of Dabur Setting up a manufacturing plant Ayurvedic medicines Establishment of research laboratories Expands further Dabur India (Dr.3 . Burman) Pvt.Dabur India Ltd 1.000 crores Dabur demerges Pharma Business Dabur aquires Balsara Dabur announces Bonus after 12 years Dabur crosses $2 Bin market Cap.1.

4 . Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small Calcutta house. Burman. a physician tucked away in Bengal.K. Soon the news of his medicines traveled. while also evolving and progressing in tune with the changing demands of a growing business. In this mission. Dabur has grown manifold. S. malaria and plague. S. and he came to be known as the trusted 'Daktar' or Doctor who came up with effective cures. S. Dr. K. Burman set up his company with the vision of good health for all. Over the years. The Mission More than a century after Dr.derived from the Devanagri rendition of Daktar Burman. Institute of Management 10 .FOUNDER & LEADERS Founding Thoughts "What is that life worth which cannot bring comfort to others" The doorstep “Daktar” The story of Dabur began with a small. like cholera. K. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. the Burman family has forged ahead with the founding thoughts of Dr. And that is how his venture Dabur got its name . It is now a leading nature-based health and family care products company. Burman undertook the task of preparing natural cures for the killer diseases of those days. S.Dabur India Ltd 1. Reaching out to a wide mass of people who had no access to proper treatment. S. but visionary endeavor by Dr. V. K. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. Dr. to a household name that at once evokes trust and reliability. With missionary zeal and fervour. the family has understood the demands of incorporating a professional management team that would be able to launch Dabur onto a high growth path. Burman. Dr.

Institute of Management 11 .Dabur India Ltd S. V.

Mohit Burman S. Pradip Burman Non Whole Time Promoters. Directors Mr.BOARD OF DIRECTORS Dabur has an illustrious Board of Directors who are committed to take the company onto newer levels of human endeavour in the service of mankind. Sunil Duggal Mr.Dabur India Ltd 1. Amit Burman Whole Time Directors Mr.D. Institute of Management 12 . The Board comprises of: Chairman Dr. P. V. Anand Burman Vice-Chairman Mr.5 . Narang Mr.

NarayanMaharaja Registered Office: 8/3. Delhi – 110002 Tel: 23253488. R C Bhargava Dr. 1. Asaf Ali Road. Avenue 4. Hyderabad . 46. Street No. Institute of Management 13 .dabur.com Website: www. V.AndhraPradesh Tel: 23312454.Dabur India Ltd Independent Directors His Highness Gaj Singh Mr. New Delhi. P N Vijay Mr. Fax: 23276739.GM (Finance) & Co.500034.Chairman / Chair Person Ashok Jain-. Secretary S. S. 23320251/751/752 Key Officials Anand Burman -. Email: corpcomm@dabur.com Registrar & Share Transfer Agent Karvy Computershare Private Ltd "Karvy House".

) ISIN No Face Value/M Lot P/E Ratio Market Cap Personal Care 500096 DABUR Dabur Group 88.03 7.00/1 24.Dabur India Ltd Other Details Business Group Listings ISIN No. Incorporation Public Issue Date Dabur Group BSE .00 (-2.611. NSE INE016A01026 19/11/1930 02/11/1993 Terms Industry BSE Code NSE Code Business Group LTP (Rs. V. Institute of Management 14 .28%) [NSE] INE016A01026 1.67 Cr S.

attracting.Dabur India Ltd 1.6 . V. natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science Provide our consumers with innovative products within easy reach Build a platform to enable Dabur to become a global ayurvedic leader Be a professionally managed employer of choice. we will: Focus on growing our core brands across categories. and improve operational efficiencies by leveraging technology Be the preferred company to meet the health and personal grooming needs of our target consumers with safe. within and outside India. relative to our peer group.STRATEGIC INTENT We intend to significantly accelerate profitable growth. reaching out to new geographies. to our shareholders S. Institute of Management 15 . efficacious. To do this. developing and retaining quality personnel Be responsible citizens with a commitment to environmental protection Provide superior returns.

Dabur India Ltd 1. Sony. by 4Ps Sunsilk. Ahead Of Non-Owner Corporate Brands Of 2007 By Dabur Listed As 45th Most Amongst The 50 Best Economic Times. Lakme & Ponds S. Institute of Management 16 . Sunil Duggal Ranked Brand. V. TCS. Ford.ACHIEVEMENTS Accolades 2007-08 Dabur Among Most Ranked Dabur Moves Up 20 Places In Dabur India’s “India’s 100 Most India Chief Valuable Executive Officer Mr Trusted Brands” List Prepared By 4Ps. Yahoo!.Valuable Brand Equity Global & Domestic Biggies Like Leaders In India Inc.7 .

Institute of Management 17 . V.500 Listing 2007 Annual Listing Of India Dabur Figures Amongst Inc's CEOs Most Powerful Top 3 Newsmakers In FMCG Sector S.Dabur India Ltd Accolades 2006 .07 Dabur Amongst Top Dabur Real Bags Gold Dabur Figures In Top Reader's Digest Great Place To Work 2006 List Three Most Respected In FMCG Companies Trusted Brand Awards Dabur Amongst India's Dabur Most Companies Valuable Amongst India 100 CEO Dabur Placed Fourth In Most FMCG Category In Influential People Of Annual ET .

That ensure unfailing quality and safety in anything you pick. company derive their products from the time-tested heritage of Ayurveda. V. to provide complete care for varying individual needs.8 . backed by the most modern scientific test and trials. Institute of Management 18 . Dabur Chyawanprash Dabur Chyawanprakash Hajmola Bhringraj Ayurvedic Dabur Janma Ghunti Tail Hajmola Candy Super Thanda Tail Dabur Chyawanshakti Pudin Hara (Liquid and Pearls) Badam Tail Dabur Chyawan Junior Pudin Hara G Active Blood Purifier Nature Care Sat Isabgol Shilajit Shankha Pushpi Sarbyna Strong Dabur Lal tail S.PRODUCT PROFILE Health Care Product Dabur's Health Care range brings for you a wide selection of herbal products.Dabur India Ltd 1.

Dabur provides superior products that helps you take care of your home. V. Institute of Management 19 . healthier and smelling great and live life the way you want . Odomos protects your family from disease causing mosquitoes while Odopic leaves your dishes clean and smelling fresh . S. Use our products to keep your home cleaner.Dabur India Ltd Home Care Product Your home needs constant care. Odonil keeps your home fresh and smelling great while Sanifresh keeps your toilet sparkling clean and free from germs.

you look and feel good deep down.Dabur India Ltd Personal Care Product Dabur presents its range of herbal personal care products. Bringing together the gentle touch of nature Amla Hair Oil Vatika Henna Conditioning Shampoo Gulabari Rose Water Gulabari Face Freshener Gulabari Hydrating Rose Crème Dabur Red Toothpaste Babool Toothpaste Amla Lite Hair Oil Vatika Anti-Dandruff Shampoo Vatika Hair Oil Vatika Root Strengthening Shampoo Meswak Toothpaste Anmol Sarson Amla Gulabari Hydrating Rose Lotion Promise Toothpaste Vatika Fairness Face Pack Vatika Saffron Glow Soap with Sandal Dabur Lal Dant Manjan Dabur Binaca Toothbrush S. V. Backed by the unfailing quality of Dabur Products. created to make and Ayurveda’s wisdom. Institute of Management 20 .

Packing can also be customised and branded according to customer requirements. Goods produced from the Dabur factory have a easy flow for the export market due to Alwar’s proximity to the ports of Mundra in Gujarat and Nhava Sheva in Mumbai.which looks after marketing of Ayurvedic medicines and Ayurvedic Over-The-Counter products -. Dabur’s Guar Gum unit has its own inhouse stuffing unit for directly loading into containers. our unit is supplied by a robust local market network. to 1. To minimise pilferage and quality loss. blending traditional knowledge of drug manufacturing with scientific update. S.Dabur India Ltd Ayurvedic care For over 120 years. Today. It produces more than 7. We also have 1. At Dabur. which is at a distance of just 160 kms.000 kg. V. Dabur’s Alwar factory is well-connected to commercial centres and major cities including Delhi. Dabur's Consumer Health Division -.has already redefined the Ayurvedic market and healthcare promotion activities involving leading Ayurvedic practitioners across the globe.500 metric tons per annum of Guar gum products in different varieties and grades. Institute of Management 21 . We have the facility for packing in 600 kg. or three hours by road.500 metric tons warehousing capacity for our food and industrial grade products. Dabur has mastered the art of producing Ayurvedic preparations. we have more than 350 Shastriya (Classical) Ayurvedic prepar-ations which form an important part of Ayurvedic practitioner's daily practice Dabur gum – manufacturing facility Strategically located in Rajasthan’s Alwar district. jumbo bags.

South-East Asia. naturebased products. marked with quality and trust gained through more than 100 years of experience. Today Dabur’s products are available for people in more than 50 countries across the world. natural and holistic lifestyle. Africa. V. S. Our products are available in the markets of the Middle East. Institute of Management 22 . the European Union and America.Dabur India Ltd International Range Dabur India Limited is a leader in manufacturing and marketing herbal. helping them move towards a healthy.

Dabur Manufacturing Facilities in India S. V.9 . Institute of Management 23 .Dabur India Ltd 1.

A special herbal health care and personal care range successfully selling in markets of the Middle East.Dabur India Ltd 1. extracted from traditional plant sources. to Europe. V. Export of Active Pharmaceutical Ingredients (APIs). Africa. nature-based and holistic lifestyles and an interest in herbal products. Our products World Wide We have spread ourselves wide and deep to be in close touch with our overseas consumers.10 . manufactured under strict international quality benchmarks. Inroads into European and American markets that have good potential due to resurgence of the back-to-nature movement. Institute of Management 24 . Export of food and textile grade natural gums. Latin America. Far East and several European countries. S. America and Africa . Dabur has been in the forefront of popularising this alternative way of life.WORLD WIDE NETWORK Dabur's mission of popularising a natural lifestyle transcends national boundaries. marketing its products in more than 50 countries all over the world. Today there is global awareness of alternative medicine. Offices and representatives in Europe. and other Asian countries.

Manufacturing facilities spread across 3 overseas locations to optimise production by utilising local resources and the most modern technology available. Our story of success is based on dedication to nature.Consumer Care Division (CCD) and Consumer Health Division (CHD) 3 Subsidiary Group companies . Institute of Management 25 .2233.Asian Consumer Care in Bangladesh. African Consumer Care in Nigeria and Dabur Egypt. The results of our policies and initiatives speak for themselves Leading consumer goods company in India with a turnover of Rs. dynamic leadership and commitment to our partners and stakeholders.72 Crore (FY07) 2 major strategic business units (SBU) . V. 13 ultra-modern manufacturing units spread around the globe Products marketed in over 50 countries Wide and deep market penetration with 47 C&F agents.5 million retail outlets all over India S.Dabur Foods. Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International .Dabur India Ltd Partnerships and Production Strategic partnerships with leading multinational food and health care companies to introduce innovations in products and services. corporate and process hygiene. more than 5000 distributors and over 1. Dabur at a glance Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status.

100 crore turnover each Vatika Hair Oil & Shampoo the high growth brand Strategic positioning of Honey as food product.Value for Money Brand Hajmola. S.Nature Care Isabgol .Trifgol Division also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of students.Madhuvaani . Leader in herbal digestives with 90% market share Hajmola tablets in command with 75% market share of digestive tablets category Dabur Lal Tail tops baby massage oil market with 35% of total share CHD (Consumer Health Division).Dabur India Ltd CCD. Institute of Management 26 . dealing with classical Ayurvedic medicines Has more than 250 products sold through prescriptions as well as over the counter Major categories in traditional formulations include: -Asav Arishtas. leading to market leadership (over 40%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Chyawanprash and Lal Dant Manjan with Rs. dealing with FMCG Products relating to Personal Care and Health Care Leading brands Dabur . V.The Health Care Brand Vatika-Personal Care Brand Anmol.Tasty Digestive Brand and Dabur Amla. Proprietary Ayurvedic medicines developed by Dabur include: .

V. Institute of Management 27 .Dabur India Ltd S.

today is not only limited up to function that circulate business but also extended its boundaries.Dabur India Ltd Chapter – 2 2. Finance. FINANCIAL STUDY This chapter deals with the following issues related to research study 1. Project objective 2. Management can analyze firm’s financial position by evaluating and analyzing financial statement of the firm.INTRODUCUTON OF FINANCE The position of finance in business can be match with the position of blood in the human body. Finance is the life blood of the business. Study the ratio analysis of Dabur India ltd. 3. 2. The function of financial management is to manage the inflow and outflow of firm in such a way so that firm can carry out its objective easily. As stated earlier success or failure of any firm heavily depends on its financial management. Project methodology PROJECT OBJECTIVE The aim of the project is to study working procedure and financial analysis of Dabur India ltd. Today success or failure of any business concerned heavily depends upon how effective finance management a firm has. S. V. Institute of Management 28 . different parties both inside and outside of the firm are interested in financial position of firm and fixed interval they often evaluate financial position by assessing financial statement of firm. The study will highlight the following objective. Study the Balance sheet and Profit & Loss A/C and analyzed it. For earning out the objective management also have to be familiar with the financial position of firm time by time. Further. 1.1 . So for knowing of financial position management has to go for financial analysis. It is the portfolio that gives maximum return at minimum cost. Study the cash flow analysis of Dabur India ltd. PROJECT METHODOLOGY Financial analysis & technique.

2. 1.Dabur India Ltd Here we define some techniques of analyzing financial statements are as follows. Cash flow statement By using this techniques management or any person who knows these techniques can analyze the financial position with adequate data and interpret it and also deriving conclusion from it. Institute of Management 29 . Trend analysis 4. V. Commonsize statement 3. S. Comparative statement. Ratio analysis 5.

75 2.01 5.046.807.22 40.94 66. V.395.70 36.48 43.07 1.96 12.79 8.43 29.06 2.27 8.07 6.32 9.132.62 26.117.71 15.04 9.450.206.81 22.94 66.903.01 30.231.15 160.20 62.73 144.473.95 9.390.293.72 54.36 33.352.48 29.371.983.77 4.77 23.84 5.45 28608.40 61.62 659.175.080.038.97 7.796.84 14.90 Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) 4.281.22 13.04 21.97 9.81 18.435.03 8.956.96 30.64 (B) Provisions 27.37 2.148.48 Total 74.27 18.589.399.370.47 47.983.23 1.253.440.981.522.916.277.12 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.25 447.32 46.757.77 41.710.30 20.99 3.327.93 20.62 783.876.16 72.40 2.35 12.02 51.63 37.75 796.30 39.16 5.752.1 .966.756.443.022.212.069.79 61.526.329.12 S.525.245.23 8.30 39.281.522.63 18.51 4.609.972.284.94 1.88 43.Dabur India Ltd Chapter-3 3.52 13.01 3.705.197.589.28 1.51 54.29 11.213.705.293.393.14 20.071.Comparative Balance sheet and analysis of Balance sheet (Rs in lacs.528.75 21.301.377.277.698.389.733.92 3.206.18 1.49 25.367.13 77.24 57.066.03 53.00 Less: Current Liabilities and Provisions (A) Liabilities 45.280.15 2.746.35 64.12 43.45 7.42 17.67 45.876.975.862.312.951.656.20 62.84 7.72 49.148.53 47.399.98 36.95 43.72 48.628.08 9.20 23.409. Loans and Advances: (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Loans & Advances 74.248.864.82 475.023.640.69 4.183.115.563.723.435.) Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Sources of Funds : Shareholders’ Funds: (A) Share Capital (B) Reserves and Surplus Minority Interest 8.594.400.151.383.715.969.20 33.329.68 1.984.15 25.870.12 2.50 131.05 2.287.020.727.62 1.93 30.67 16.02 137. Institute of Management 30 .72 72.19 546.32 25.006.09 581.63 8.117.080.92 7.29 73.

The reserve of the company is also increasing from 2004 to 2007 but in 2007 it decrease because this year it invests higher in inventories and debtors will be approximately double as compare to last year. it was 294 Cr in 2004. The Net Block of a company was continuously increased for three years and than after some what decrease in the year 2007 because of decrease in Fixed Assets of the company. The fix assets also increase every year which shows that company purchases investments and assets every year. The liability of the company is increasing every year from 2004 to 2008. Institute of Management 31 . V. which was goes to 732 Cr in 2008 means 250% increase in the liability of the company. Its shows company’s good profitability and financial soundness. It may reason for that. S.Dabur India Ltd INTERPRETATION: Total of the share holder funds and liabilities increase continuously in 2004 to 2008 because of growth of the company.

17 169.30 215.49 253.91 139.00 100.71 300.33 214.19 112.21 199.00 100.00 100.06 100.96 119.38 144.71 166.19 253.28 170.00 100.52 57.62 31.77 179.68 168.74 135.00 100.10 116.Dabur India Ltd 3.95 S.47 153.00 100.91 160.03 96.00 100.13 154.Trend Analysis (Index Analysis) Trend Analysis of Balance Sheet Mar 04 ' Mar ' Mar 05 06 ' Mar 07 ' Mar 08 ' Sources of Funds : Shareholders’ Funds: (A) Share Capital (B) Reserves and Surplus Minority Interest 100.38 200.20 106.82 115.72 172.00 100.00 100.00 100.47 231.55 3.20 139.43 Total 100.2 .94 154.87 232.043 88. Loans and Advances: (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Loans & Advances Less: Current and Provisions (A) Liabilities (B) Provisions Liabilities 100.74 38.00 100.66 249.00 100.17 378.75 167.90 151.05 157.00 116.00 115.44 152.71 410.00 100.00 132.05 130.98 204.22 127.09 138.65 215.72 Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) 100.00 100.38 76.09 91.79 241.90 242.65 498.06 128.86 33.45 197.90 118.00 100.19 188.13 301.76 146.96 188.04 149. V.46 177.00 100. Institute of Management 32 .79 173.94 131.81 96.00 100.14 148.37 117.52 300.69 227.83 324.00 100.95 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.15 186.47 118.00 142.72 301.62 62.92 342.29 125.05 211.66 72.04 141.00 4211.14 143.84 206.65 175.00 100.00 125.21 104.30 172.04 163.99 17.20 144.00 100.33 341.89 106.92 32.

V. the Investment was increase 80% but after that in 2006 it was decrease 82% than previous year. It was highly decrease in 2008 because of very less amount of unsecured loans. Net current Assets and Total of balance sheet. Investment. In 2005. Total of the share holder funds and liabilities increase continuously in 2004 to 2008 because of growth of the company. it shows increasedecrease every year. The Net Block of a company was continuously increased for three years and than after some what decrease in the year 2007 because of decrease in Fixed Assets of the company. In 2007 it was also increase 535% than previous year. The current assets of the company decrease 83% in 2005 than after it increase 450% than previous year. And in 2008 it decrease 78%. The shareholder’s fund of a company was continuously increased for three years and than after some what decrease in the year 2007 because of decrease in Reserves and Surplus of the company. Loan funds.Dabur India Ltd Trend Analysis of Balance Sheet 500 400 300 200 100 0 2004 2005 2006 2007 2008 Shareholder s’ Funds Loan Funds Net Block Investments Net Current Assets Total In the above graph you can see the trend analysis of Shareholder’s fund. The loan funds of company shows fluctuated flow. Than after it was increase for two years. Institute of Management 33 . S. Net Block.

61 97.00 100.77 2.76 29.00 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.44 1.09 78.31 62.63 1.94 82.61 59.97 13.60 0.23 29.21 3.88 12.84 100.15 35.19 70.21 88.Dabur India Ltd 3.98 2.61 12.00 100.50 61.77 67.62 33.25 42.40 23.06 26.96 48.27 56.42 13.47 66.67 17.00 12.67 22.45 35.95 3.50 82.00 100.07 49.17 2. Institute of Management 34 .61 1.08 17.88 58.03 0.12 6.64 100.92 2.72 103.96 75.88 10.75 100.00 6.36 38.89 5.43 1.97 0.77 5.45 54.90 3.47 79.16 36.71 71.52 Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Total 100.71 20.47 67.55 73.53 21.33 9.44 4.32 75.87 100.38 21.48 0.21 92.05 0.21 3. Loans and Advances: (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Loans & Advances Less: Current and Provisions (A) Liabilities (B) Provisions Liabilities 97.Common Size Statements Common Size Statement of Balance Sheet Mar 08 ' Mar 07 ' Mar 06 ' Mar 05 ' Mar 04 ' Sources of Funds : Shareholders’ Funds: (A) Share Capital (B) Reserves and Surplus Minority Interest 11.08 3.13 40.98 95.66 0.97 5.25 95.54 70.00 100.53 37.00 5.36 69.19 37.59 1.19 9.92 8.01 10.86 53.44 28.35 18.30 16.63 13.3 .62 34.75 0.70 34.00 9.80 17.64 5.98 0.43 57.35 100.20 21.05 2.54 56.88 9.00 S.53 67.14 27.22 115.10 11. V.28 61.08 35.32 19.

35 5.9 3.64 11.47 (A) Share Capital (B) Reserves and Surplus Minority Interest (A) Secured Loans (B) Unsecured Loans Deferred Tax Liability 2007 17.71 (A) Share Capital (B) Reserves and Surplus Minority Interest (A) Secured Loans (B) Unsecured Loans Deferred Tax Liability 13.88 9.95 2.63 2008 3.33 9.67 58.77 0. V.92 2.97 5.21 0.77 2006 12.94 S.88 0.87 12.43 1.88 9.19 70.61 (A) Share Capital (B) Reserves and Surplus Minority Interest (A) Secured Loans (B) Unsecured Loans Deferred Tax Liability 2005 17. Institute of Management 35 .28 (A) Share Capital (B) Reserves and Surplus Minority Interest (A) Secured Loans (B) Unsecured Loans Deferred Tax Liability 3.03 0.Dabur India Ltd Analysis of Common Size Statement of Balance Sheet Sources of Funds : 2004 19.84 6.8 61.75 3.32 59.54 (A) Share Capital (B) Reserves and Surplus Minority Interest (A) Secured Loans (B) Unsecured Loans Deferred Tax Liability 70.47 2.

S. Than it increase and goes to 17. The contribution of secured loan was 19.21%.28% which was increase in 2006 and goes to 9.97% in 2007. The reserve and surplus have a highest contribution in all the year. And its contribution was between 1% to 4% in all given five years. and goes to 58.43%.77%. and become 3. the contribution was only 0. After that in 2007 and in 2008 it was again increase. V. After that its contribution decrease in 2006.33% in 2004 which was decrease in 2005 and become 17.9% in 2007. The contribution of unsecured loan in 2004 was 9. In 2008. which was goes to 5. so we can say company highly depend on reserve and surplus. Institute of Management 36 . It increase for first three year than it was decrease in 2007. After that it decreases near about 5% in 2006.71%. The contribution of minority interests was very less in each year.Dabur India Ltd Analysis of Sources of Funds : In 2005.88%. which was nearly same in the year 2005. the contribution of share capital in total share holder funds was 5. Deferred tax liability was also considered in share holder’s fund. And after than it was again come to same contribution which was in 2006. which was again decrease in 2008.19% because of issue of new shares.

07 Fixed Assets : Investments Deferred Tax Assets Net Current Assets 29.61 Miscellaneous Expenditure 2008 5.75 5.21 1.97 57.14 S.22 12.61 0.25 Miscellaneous Expenditure 2006 5.05 56.13 1.96 Fixed Assets : Investments Deferred Tax Assets Net Current Assets Deferred Tax Assets Net Current Assets 82.12 28.76 Miscellaneous Expenditure 42.59 3.98 54.27 Fixed Assets : Investments 2007 2. V.44 1.21 27.64 0.21 6.Dabur India Ltd Application of Funds 2004 10. Institute of Management 37 .86 Fixed Assets : Investments Deferred Tax Assets Net Current Assets Miscellaneous Expenditure 62.17 Miscellaneous Expenditure 0.52 Fixed Assets : Investments Deferred Tax Assets Net Current Assets 0.25 2005 1.

61% in 2004 which was highly decrease in 2005 and become only 1. After that it goes to near about 5.44%.17% in 2007.9% in 2007. V. The contribution of miscellaneous expenses in 2004 was 9.43%. After that it decreases nearly 26% in 2007 and than increase some what in 2008.64% in 2006.76% in 2004 which was decrease 4. Deferred tax Assets was also considered in Total assets. S. The fixed assets have a highest contribution in all the year.50% in 2005. After that its contribution decrease in 2006.5% in 2008.97% which was increase in 2005 and goes to 42.77%. the contribution of investment in total assets was 29. And in 2008. it was increase near about 15%. and become 3. After that in 2006 and in 2007 it was decrease.21%. Institute of Management 38 . which was again decrease 22. It was 57. which was goes to 5.12%. Than after it was highly increase nearly 28% in 2006. and become 82. Than it increase 22% and goes to 28. which was nearly same in the year 2005.Dabur India Ltd Analysis of Application of Funds In 2004.98% which shows nearly 13% increase in it.21% in 2008. The contribution of net current assets was 10. And its contribution was between 0% to 1% for first four years than it goes to 3. the contribution was only 0. In 2008.

Dabur India Ltd Chapter – 4 4. it yields significant inferences. Institute of Management 39 . so that the strength and weakness of a firm as well as its historical performance and current financial condition can be determined. Percentage 2. It is defined as the systematic use of ratio to interpret the financial statement. enables analysis to draw quantitative answers such as :Is the net profit adequate? Are the assets being used efficiently? Is the firm solvent? Can the firm meet its current obligations and so on? S.RATIO ANALYSIS Ratio analysis is a widely used tool for financial analysis.1 . Proportion of numbers The rational of ratio analysis lies in the fact that it makes related information comparable. V. The relationship can be expressed as :1. a quantitative tool. The term ration refers to the numerical and quantitative relationship between two items/variables. Ratio analysis thus. A single figure by itself has no meaning but when expressed in terms of a related figure. Fraction 3.

The ratio can be classified as under: Accounting ratio Traditional classification Functional Classification P & L Ratio Profitability Ratio B/S ratio Turnover Ratio Composite Ratio Financial Ratio S. Institute of Management 40 .Dabur India Ltd Financial ratios are useful indicators of a firm's performance and financial situation. In some cases. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms. Most ratios can be calculated from information provided by the financial statements. V. ratio analysis can predict future bankruptcy.

175. S.5 1 0.00 40.156 : 1 Current Assets Current Liabilities Ratio 77.93 1.47 47.48 1.2 .132.417 1.046.984.080 : 1 2005 39.13 73.62 1.51 1. V.417.390.156 INTERPRETATION:The current assets and current liabilities have become more than double in 2008 than 2004.67 1. In 2004.969.Current Ratio The main question this ratio addresses is: "Does your business have enough current assets to meet the payment schedule of its current debts with a margin of safety for possible losses in current assets. You can see fluctuation in current ratio in each year.Dabur India Ltd 4.019 1.5 0 2008 2007 2006 Year 2005 2004 1.057 : 1 45. than after it is decrease in 2008. such as inventory shrinkage or collectable accounts?" A generally acceptable current ratio is 2 to 1. the ratio was 1.417 : 1 Current Ratio 1.389.752.71 33.206.019 : 1 2004 29.35 64. It is figured as shown below: Current Ratio :- = 2008 2007 Current Assets Current Liabilities 2006 43. The current ratio was highest in the year 2007 because of low current liabilities.057 1.Balance Sheet Ratio 1 .609.080 1. It is nearly same in 2006. and than after in 2007 the ratio was 1. Institute of Management 41 .156 and it was decrease in 2005 because of increase in liabilities.

it concentrates on the really liquid assets. V. Here we can see that the quick liabilities in the year 2006 and 2007 remaining same with the minor change.699.389.93 73. The Quick Ratio is a much more exacting measure than the Current Ratio.67 0.206.64 0. S.Quick Ratios (Acid-test Ratio) The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best measures of liquidity.969.51 0. By excluding inventories.59 0. Institute of Management 42 .62 0. But in the year 2008 it jumps with 1.175. It helps answer the question: "If all sales revenues should disappear.609.79 39.62 times more.854.141.16 43.85 2006 25. with value that is fairly certain. than after it is decrease from 64% in 2008.Dabur India Ltd 2 .51 0.48 0.85 2005 2004 INTERPRETATION:Quick ratio is found out for show a liquidity of a company. It was highest in 2007 because of low current liability of a company it was 85% in 2007. How many liquid assets in the company. could my business meet its current obligations with the readily convertible `quick' funds on hand?" It is figured as shown below: Quick Assets Quick Ratio = Current Liability 2008 47.439.68 29.51 2004 18.59 2005 20.64 2008 2007 2006 0.63 45.93 0.64 2007 38.335.64 Quick Assets Current Liabilities Ratio Quick Ratio 0.

183.68 146.669. And it was also some what higher in the year 2004.Total Current Liabilities Working Capital Total Assets Ratio 2008 4.594.70 1% 2004 4. Institute of Management 43 .73 6% Net Working Capital Ratio 20% 15% 10% 5% 0% 17% 6% 1% Ratio 3% 3% 2008 2007 2006 2005 2004 Year INTERPRETATION:Net working capital ratio shows the portion of net working capital in total assets.17 3% 2005 783. It is calculated as shown below: Bankers look at Net Working Capital over time to determine a company's ability to weather financial crises.Dabur India Ltd 3 .722.34 3% 2007 18.Net working Capital Ratio The result of this calculation must be a positive number.07 102.522. S. Loans are often tied to minimum working capital requirements. V.022.76 17% 2006 3.870.176. especially if you are relying to any significant extent on creditor money to finance assets. In the year 2008 and in 2006 the ratio was same. The ratio was highest in the year 2007 because in that year the current asset is higher and current liability is lower. A general observation about these three Liquidity Ratios is that the higher they are the better.09 93.99 110. Net Working Capital -------------------------Total Assets Net Working Capital Ratio = Working Capital = Total Current Assets .688. And in year 2005 it was 1% only.62 72.

The proprietors’ fund or shareholders equity fund consists of share capital.20 0.70 0. Than it was 39% in 2005. V. There can not be a standard ratio for all type of business. In 2004. S.393.42 0.53 146.40 Proprietor's Funds Total Assets Ratio 2008 61.956.50 0.44 2006 49. the ratio was 40%.17 0.688.73 0.705.48 2005 36.669.30 0.022. The proprietary ratio was nearly same in all the years.00 0.40 Ratio 2008 2007 2006 Year 2005 2004 INTERPRETATION:This ratio shows the proportion of proprietors’ funds to total assets employed in the business.39 0.757. than it is increase 9% in 2006.176. and reserves and surpluses. A very high ratio is not desirable.Proprietary Ratio The higher the ratio the stronger the financial position of the company as it signifies that proprietors have provided larger funds to purchase the assets.722. And it was decrease in 2007 and 2008 and become 44% and 42% respectively.42 Propritory Ratio 0.39 2004 28608.40 0.72 110. Institute of Management 44 .82 102. Proprietor’s Funds Proprietary Ratio = Total Assets 2007 47.Dabur India Ltd 4 .10 0.94 72. but it can be said that the proprietors’ fund should be enough to cover the fixed assets.48 0. Because it means that insufficient use is being made of outside funds.18 93.76 0.44 0.34 0.

In 2005. the ratio was 45% and it was decrease in 21% in 2006 because of decrease in unsecured loans and increase in reserve and surplus of a company.705.579.956.45 0. Institute of Management 45 . V.757.20 2007 18.248.365.18 0.39 2007 2006 2005 0.20 0.90 36. Long Term Liabilities Shareholder’ fund Dept-Equity Ratio = Long Term Liability Shareholder’s Fund Ratio 2008 12. S.45 2004 13. And again it was increase in the year 2007.94 0.82 0.39 2006 12.16 61. than after it was 19% decrease in 2008.Dept-Equity Ratio The relation between borrowed funds and owner’s capital is a popular measure of long-term financial solvency of a firm.82 49.53 0. and become 39%.46 Dept-Equity Ratio 2008 0. It has important implication from the view point of the creditors.24 2005 16.Dabur India Ltd 5 .39 28608.644.393.29 47.24 2004 INTERPRETATION:The debt-equity ratio is an important tool of financial analysis to appraise the financial structure of a firm.147.46 0. owners and the firm itself. so it shows more fluctuation in every year. thus the ratio of total outside liabilities to owner’s total funds. This relationship is shown by debt-equity ratio.72 0. The D/E Ratio is. This ratio reflects the relative claims of creditors & shareholders against the assets of the firm.

the fixed assets of business must be purchased out of fixed capital only. which includes share capital.24 1.Long Term Funds to Fixed Assets Ratio Normally.956. In 2008.33 1. reserves and long term liabilities. In 2006.757. the ratio was less than 1 because of decrease in share capital and increase in fixed assets of the company.50 0.525.63 1.14 Long Term Funds Fixed Assets Ratio 2008 61.30 0.18 29.Dabur India Ltd 6 .705.20 1.14 INTERPRETATION:Long Term Funds to Fixed Assets Ratio shows contribution of long term funds in to fixed assets.97 1.50 1. there fore shows the relationship between fixed capital and fixed assets. This ratio.00 Ratio 0.24 2004 28608. the ratio was highest because of higher reserve and surplus.393.006. The ratio must be 1:1 or more i.00 2008 2007 2006 Year 2005 2004 1. Institute of Management 46 . V.26 0.33 2007 47.94 25.e.53 46.26 Long Term Funds to Fixed Assets Ratio 1.72 37. Long Term Funds to Fixed Assets Ratio was more than 1 in all the year except in the year 2006.82 51.97 2005 36. the fixed capital must be more than fixed assets or must at least equal to fixed assets.02 1. S.916. Long Term Funds Long Term Funds to Fixed Assets Ratio = Fixed Assets 2006 49.35 1.450.245.

) MAR ' 05 153695 921 154616 65942 4280 4050 10848 47691 1244 150 2800 137006 17610 1510 400 0 15701 0 15701 120 15581 8979 183 -26 24799 2863 4296 374 603 0 2 2565 14093 MAR ' 04 132956 907 133863 58147 6540 3470 9155 39726 1528 392 2489 121448 12415 1135 349 0 10932 0 10932 279 10652 7019 250 -32 17910 1717 4007 220 513 156 4 2313 8979 INCOME : Net Sales Other Income Total Income 236106 3401 239508 110097 0 8577 19931 56568 1680 567 3643 201063 38444 4277 75 713 33379 0 33379 -13 33392 32270 69 -167 65564 6480 6480 1101 1101 40 4 7000 43358 EXPENDITURE : Cost of Materials Excise Duty Manufacturing Expenses Payments & Prov.Dabur India Ltd 5.Comparative Profit & Loss A/C MAR ' 08 MAR ' 07 204314 2591 206905 97108 0 7426 16667 48139 1538 649 3429 174956 31949 3494 -137 375 28217 0 28217 -87 28304 21586 23 -155 49758 12213 0 1713 0 335 20 3000 32478 MAR ' 06 189957 1337 191294 80772 3372 5711 14496 56523 1639 426 2692 165632 25662 2186 353 463 22660 -1274 21386 -32 21418 14093 149 -52 35665 4303 5733 603 804 19 5 2611 21586 (Rs in laces.Final Corporate Tax on Interim Dividend t Corp Tax on Proposed Dividend Transferred to Capital Reserve Transferred to Legal Reserve Transferred to General Reserve Balance Carried over to Balance Sheet S. Institute of Management 47 . for Employees Selling & Administrative Expenses Financial Expenses Misc. for Taxation for Earlier Year Profit for Appropriation Appropriation/Allocation Interim Dividend Proposed Dividend . V. Expenditure Written off Depreciation Total Expenditure Net Operating Profit before Tax Provision for Taxation Current Provision for Taxation Deferred Prov. for Taxation Fringe Benefit Net Profit after Taxation and before Extraordinary Item Add Extraordinary Item on Long Term Trade Investments 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 Prov.1 .

Net profit also increasing that’s shows good position of the company. Net sales of the company increasing every year. So it’s a good for the company because it helps in increase in the profit of the company. The misc.Dabur India Ltd INTERPRETATION: The Total income of the company shows continuous increase in year by year and it was Rs 1339 Cr in the year 2004 while in year 2008 it increase 179% and goes to Rs 2395 Cr. It may because of increase in the rate of return. The Total expenditure also increases in 2004 to 2008 but it was not increase as the rate of Total income increase. It increases in the year 2008 than last year. In the year 2005 the financial expenses also the lowest in last five years. expenditure will lowest in year 2005. Institute of Management 48 . S. It was Rs 1330 Cr in 2004 and goes to Rs 2361 Cr in 2008.it increase for next two years and the year 2008 it decrease it may because of cost cutting or effect of recession of the economy. The net profit after tax is increase nearly 300% in overall five year period. V.

Dabur India Ltd

5.2 - Trend Analysis of Profit and Loss A/C
MAR ' MAR ' 04 05 INCOME : Net Sales Other Income Total Income EXPENDITURE : Cost of Materials Excise Duty Manufacturing Expenses Payments & Prov. for Employees Selling & Administrative Expenses Financial Expenses Misc. Expenditure Written off Depreciation Total Expenditure Net Operating Profit before Tax Provision for Taxation Current Provision for Taxation Deferred Prov. for Taxation Fringe Benefit Net Profit after Taxation and before Extraordinary Item Add Extraordinary Item on Long Term Trade Investments 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 Prov. for Taxation for Earlier Year Profit for Appropriation Appropriation/Allocation Interim Dividend Proposed Dividend - Final Corporate Tax on Interim Dividend Corpt Tax on Proposed Dividend Transferred to Capital Reserve Transferred to Legal Reserve Transferred to General Reserve Balance Carried over to Balance Sheet 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 115.59 101.48 115.50 113.40 65.44 116.73 118.49 120.05 81.37 38.15 112.48 112.81 141.84 133.00 114.67 143.62 MAR ' 06 142.87 147.35 142.90 138.91 51.55 164.59 158.32 142.28 107.23 108.76 108.16 136.38 206.69 192.55 101.25 207.28 MAR ' 07 153.66 285.64 154.56 167.00 0.00 214.00 182.04 121.17 100.61 165.70 137.75 144.05 257.33 307.79 -39.25 258.12 MAR ' 08 177.58 374.94 178.91 189.34 0.00 247.18 217.69 142.39 109.92 144.63 146.36 165.55 309.64 376.78 21.60 305.34

100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

143.62 42.92 146.26 127.92 73 82.91 138.46 166.69 107.20 170.02 117.35 0.00 44.19 110.92 156.94

195.63 -11.62 201.06 200.77 59.41 163.65 199.13 250.54 143.05 274.01 156.59 12.39 134.09 112.90 240.39

258.12 -31.18 265.71 307.52 9.12 490.59 277.82 711.06 0.00 778.37 0.00 215.31 495.45 129.72 361.69

305.34 -4.67 313.47 459.74 27.42 526.01 366.07 377.29 161.70 500.46 214.48 25.72 89.39 302.70 482.86

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Dabur India Ltd

Trend Analysis of Profit and Loss A/C
400 350 300 250 200 150 100 50 0 2004 2005 2006 2007 2008

Total Income Total Expenditure Net Operating Profit before Tax Profit for Appropriation

In the above graph you can see the trend analysis of Total Income, Total Expenditure, Net operating Profit after Tax and Profit for Appropriation. The Total income of the company shows continuous increase in year by year and it was goes to 100 to 179% in 2004 to 2008. The Total expenditure also increases in 2004 to 2008 but it was not increase as the rate of Total income increase. The Net operating Profit before Tax increases at a high rate because Total expenses were increasing at a lower rate than the Total income. The net profit after tax and interest was also increase as near to same rate as Net operating Profit before Tax increase. The profit for appropriation increase at a higher rate, it was increase at 100% to 366% in 2004 to 2008. End at last the Balance Carried over to Balance Sheet was increase at higher rate than any other items increase.

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Dabur India Ltd

5.3 - Common Size Statement of Profit And Loss A/C
MAR ' MAR ' MAR ' MAR ' MAR 08 07 06 05 04 INCOME : Net Sales Other Income Total Income EXPENDITURE : Cost of Materials Excise Duty Manufacturing Expenses Payments & Prov. for Employees Selling & Administrative Expenses Financial Expenses Misc. Expenditure Written off Depreciation Total Expenditure Net Operating Profit before Tax Provision for Taxation Current Provision for Taxation Deferred Prov. for Taxation Fringe Benefit Net Profit after Taxation and before Extraordinary Item Add Extraordinary Item on Long Term Trade Investments 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 Prov. for Taxation for Earlier Year Profit for Appropriation Appropriation/Allocation Interim Dividend Proposed Dividend - Final Corporate Tax on Interim Dividend Corpt Tax on Proposed Dividend Transferred to Capital Reserve Transferred to Legal Reserve Transferred to General Reserve Balance Carried over to Balance Sheet 98.57 1.42 100 45.96 0 3.58 8.32 23.61 0.70 0.23 1.52 83.94 16.05 1.78 0.03 0.29 13.93 0 13.93 -0.005 13.94 13.47 0.03 -0.07 27.37 2.70 2.70 0.46 0.46 0.02 0.001 2.92 18.10 98.75 1.25 100 46.93 0 3.59 8.05 23.27 0.74 0.31 1.66 84.56 15.44 1.69 -0.07 0.18 13.64 0 13.64 -0.04 13.68 10.43 0.01 -0.07 24.05 5.90 0 0.83 0 0.16 0.01 1.45 15.70 99.30 0.70 100 42.22 1.76 2.98 7.58 29.55 0.86 0.22 1.41 86.58 13.41 1.14 0.18 0.24 11.84 -0.67 11.18 -0.02 11.20 7.37 0.08 -0.03 18.64 2.25 3.00 0.31 0.42 0.01 0.003 1.36 11.28 99.40 0.59 100 42.65 2.77 2.62 7.02 30.84 0.80 0.10 1.81 88.61 11.39 0.98 0.26 0 10.15 0 10.15 0.08 10.08 5.81 0.12 -0.02 16.04 1.85 2.78 0.24 0.39 0 0.001 1.66 9.11 99.32 0.68 100 43.44 4.88 2.59 6.84 29.68 1.14 0.29 1.86 90.72 9.27 0.85 0.26 0 8.17 0 8.17 0.21 7.96 5.24 0.19 -0.02 13.38 1.28 2.99 0.16 0.38 0.12 0.003 1.73 6.71 '

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The contribution of balance carried over to balance sheet was 3 times higher in 2008 than 2004. The contribution of total expenditure was continuous decrease year by year. Institute of Management 52 .38% in 2004. V. S.71% in 2004 which was goes to 18.Dabur India Ltd Analysis of Common Size Statement The contribution of net sales in total income was nearly same in all the year it was near about 98 to 100%. The net profit before inters was increase because of decrease in the expenditure of the company.10% in 2008. The contribution of profit for appropriation was 13. Its contribution was 6. And it was continuous increase in every year. It shows reverse order than the total expenditure. which was goes to 27. because of decrease in excise duty which is good for the company. So that from the above common size statement we can easily find out that company is growing well year by year.37% in 2008. It was also increase year by year.

52 Ratio 0.44 2008 2007 2006 Year 2005 2004 0.50 0.46 0. gross profit was 51%.695.4 . Institute of Management 53 . than in 2005 and 2006 it was 48% and 47% respectively.273.48 0.48 0.Ratio Analysis 1 .956.00 0.68 189. it was increase 4%. A change in gross profit ratio can be brought by change in any of these factors.09 236.855.05 0.41 0. V.33 0.47 0.53 0.674. S.957.51 2006 89.82 204.50 2007 104.51 0.48 2004 68.51 INTERPRETATION:Gross profit is the result of relation between prices.106. It measures the efficiency of production as well as pricing.313. So that we can say the cost of material is less in Dabur India ltd.156. Gross Profit Gross Profit Ratio = Sales × 100 Gross Profit Net Sales Ratio 2008 118.51 Gross Profit Ratio 0.47 2005 74.Gross Profit Ratio It shows the margin left after meeting manufacturing costs.93 132.50 0.Dabur India Ltd 5. The gross profit of a company was near about 50% in every year. In 2004. and in 2008 decrease 1% and become 50%.533.02 153. which is very good for the company. In 2007. sales volume and cost.

00 204.31 0.10 0. V.85 2005 47.40 0.41 0. In 2004.956.53 189.568.98 2006 56.138.Administrative Expenses ratio For the purpose of ascertaining relationship between administrative expenses and net sales Administrative Expenses ratio are computed.24 0.33 132. The administrative expense was 24% to 31% in given year.25 2004 39.30 0.957. Administrative Expenses Administrative Expenses ratio = Sales 2008 Administrative 56.30 0.695.30 2008 2007 2006 Year 2005 2004 INTERPRETATION:The Administrative Expenses ratio shows the proportion of administrative expenses in the net sale.05 0.24 Ratio 2007 48. These ratio over a number of years will reveal the extent to which the expenses either increase or decrease in relation to sales.20 0.691.313. taxes dividends etc.00 0.726.01% increase in 2005. Institute of Management 54 .24 0.00 153. In 2007 and 2008 the ratio was same it was 24% S.522.46 Expenses Net Sales 236.106.30 0.24 0. the contribution of administrative expense was 30% and it was 0. A high expense ratio is not desirable for meeting financial liabilities like interest.Dabur India Ltd 2 .30 Administrative Expenses Ratio Ratio 0.31 0.

106.528.007 0.313.010 Ratio 0. The Financial Expenses Ratio was near to 1% in all given year which is very good for the company.008 0.05 0.17 236. V.015 0.008 0.Dabur India Ltd 3 .73 2005 1. These ratio over a number of years will reveal the extent to which the expenses either increase or decrease in relation to sales.956.53 189.41 204.005 0.011 INTERPRETATION:The Financial Expenses Ratio shows contribution of financial expense in the net sales. Institute of Management 55 .007 0.89 2007 1.243.000 2008 2007 2006 Year 2005 2004 0. taxes dividends etc.679. So we can see that the company has a less burden of financial expenses.009 0.00 153. Financial Expenses Financial Expenses Ratio = Sales Financial Expenses Net Sales Ratio 2008 1. S. A high expense ratio is not desirable for meeting financial liabilities like interest.33 132.537.008 0.59 2004 1. Financial Expenses ratio are computed.695.Financial Expenses Ratio For the purpose of ascertaining relationship between Financial expenses and net sales.957.638. In only 2004 the ratio was more than 1%.50 2006 1.011 Financial Expenses Ratio 0.009 0.008 0.

S.659. In 2004. Net Profit (After Tax) Net Profit Ratio = Net Sales 2007 28.379.313.65 2008 Net Profit after 33.36 2006 22. the net profit was 8%.106.50 2004 10.700.695.956.53 189. In 2007 and 2008 the net profit ratio was same. Institute of Management 56 .15 Taxation Net Sales 236. It also expressed the cost price effectiveness of the operation.957.41 14% Ratio 204.931. This ratio is useful to the shareholders for knowing the EPS and to investors in judging the prospects of return on their investments higher ratio indicated higher profitability.217.Dabur India Ltd 4 .05 14% 12% 10% 8% Net Profit Ratio 8% 10% 2008 14% 2007 2006 2005 12% 14% 2004 INTERPRETATION:Net profit ratio indicates the management ability to operate the business efficiency.82 2005 15.00 153. V.Net Profit Ratio It is most significant of all revenue ratios as it indicates the ultimate profitability of the firm. it was 14% because of higher gross profit ratio in these year and decrease in selling and administrative expenses of company.33 132. than after 2% increase in each successive year for three year.

Income Before Interest and Income Tax Expenses ------------------------------------------------------Interest Expense Interest Coverage Ratio = Income Before Interest and Income Tax Expenses = Income Before Income Taxes + Interest Expense 2008 38.48 279.45 and it was increasing more than 200% in 2005 and goes to 146. So creditor of company feels secure that the company has high interest coverage ratio.37 -13. And it was negative in the year 2006 to 2008.444. In 2004. It measures the debt service capacity of the firm in respect of fixed interest on long term debts.610.1 0 2006 25.22 -87. So we can say that the company uses very low amount of debt. it is also known as “timesinterest earned ratio”.45 INTERPRETATION:The interest expense of a firm was very low. the ratio was 44.00 0.00 0.89 150 100 Ratio 50 0 2008 2007 2006 Year 2005 2004 0.415.21 119.05 0 2007 31.89 2004 12. S. This ratio is obtained by dividing profit of the firm before interest and taxes (EBIT) by fixed interest charges. V.Dabur India Ltd 5 .45 Net Profit (BIT)) Interest Ratio Interest Coverage Ratio 146.Interest Coverage Ratio The ratio indicates as to how many times the profit covers the payment of interest on debenture and other long term loans.47 0 2005 17.89. Hence.3 44.89 146. Institute of Management 57 .661.00 44.97 -32.949.

It is calculated by dividing the profits available to the equity share holders by the numbers of the outstanding shares.68 868.S. In 2004.95 575.P.P.69 INTERPRETATION:The E. the E.461 2.19 286.Dabur India Ltd Earnings Per Share (EPS) EPS measures the profit available to the equity shareholder on a per share basis. and increase 0.66 EPS 6. In 2005. Institute of Management 58 .68 577.38 4.38 2006 191. was4.62 Rs in 2006.762 2.93 Rs in 2007.845 2.00 2008 2007 2006 Year 2005 2004 2.293.S.809.524.76 3. than after it was decrease 0. (2) comparison with the EPS of other firms.904.999 3.00 Rs 2.00 4.615. S. gives measure of the rate of yield . that is.379 4.984.66 Rs and it was highest because of minimum number of share holder.69 Rs. when compared to the current market price of the share. V.P. As a profitability ratio.31 2. was 2. Net Income --------------------------------------------Number of Common Shares Outstanding Earnings Per Share (EPS) = Total Income No of shares EPS 2008 239.S.This yield can be used by a Share holder while making decisions about the investment on comparison to other alternative investments.76 Rs in 2008. the EPS can be used to draw inferences on the basis of (1) its trends over a period of time.807. the amount they can get on every share held.69 2004 133.00 0. and it was 2.507.31 2005 154.76 869. the E.534. and (3) comparison with the industry average.76 2007 206.66 2.863.

53 0.97 49.5 .43 Net Profit before Tax Net Worth Ratio Return on Investment 0. this ratio tells the owner whether or not all the effort put into the business has been worthwhile.48 28608.444. In short. the ratio is 43% than in 2005. V. If the ROI is less than the rate of return on an alternative.21 36. The ratio is highest in the year 2007.22 47.18 0. The ROI is perhaps the most important ratio of all.Dabur India Ltd 5.48 2004 12.37 61.Composite Ratios 1 .415.949. it was 67% than after it was 5% decrease in 2008.60 0.393. The ROI is calculated as follows: Net Profit before Tax Return on Investment = Net Worth 2008 38. and avoid the daily struggles of small business management.6% 48.52 2005 17.6% 51.956. It is the percentage of return on funds invested in the business by its owners. put the money in such a savings instrument.20 0. risk-free investment such as a bank savings account.610.80 0.82 0. it is 48%. We can see that ratio of company was higher in every year so it is an opportunity for investor to invest in equity funds.3% 66.72 0. the owner may be wiser to sell the company.4% 43.40 0.661.94 0. S.00 62. Institute of Management 59 . In 2004.62 2007 31.705.Return on Investment (ROI) Ratio.757.67 2006 25.4% Ratio 2008 2007 2006 2005 2004 Year INTERPRETATION:Return on investment ratio shows percentage of return earn by the owner in a particular year.

62 0. And than after their was a 15% increase in 2007.915.044.949.251.403.22 25.51 INTERPRETATION:If the return on capital employed ratio is higher than it shows the more efficient is the use of capital employed. Comparison of this ratio with similar firms.48 62. In 2004. than it was increase 5% in 2005 and in 2006.37 31. S.Return on capital employed Here the profits are related to the capital employed.41 0.97 17. Net Profit (Before Interest & Tax) Return on capital employed = Capital employed 2007 2006 2005 2004 2008 Net Profit before Tax Capital Employed Ratio 38. We can see that ratio of return on capital employed was higher in every year so it is a good implication for investor to invest their money in equity funds.21 12.Dabur India Ltd 2 .610. and it was 62% in 2008. Thus the capital employed basis provides a test of profitability related to sources of long term funds.66 2008 2007 2006 2005 2004 0. the more efficient is the use of capital employed. with the industry average and over time would provide sufficient insight into how efficient the long-term funds of owners and lenders are being used.66 0.41 Return on capital employed 0.62 0.51 0.46 0.661.78 48. the ratio was 41%.444. V. Institute of Management 60 . The higher the ratio.73 0.46 0.232.22 30. The term capital employed refers to the total long term funds supplied by the lenders and owners of the firm.415.90 37.91 50.

15 28. the return was 38%.393.Dabur India Ltd 3 . In 2006.65 61. In 2004. Institute of Management 61 . after that it was increase 5% in 2005. Net Profit (PAT) Return on Shareholder Funds = Shareholder Funds Net Profit Taxation Shareholder’s Fund Ratio 2008 2007 2006 2005 2004 after 33.700.82 36.94 54% 59% 46% 43% 38% Return on Shareholder Funds 60% Ratio 40% 20% 0% 2008 2007 2006 Year 2005 2004 54% 59% 46% 43% 38% INTERPRETATION:The return on share holder funds ratio helps to find out how much return earned by equity shareholder.217. in the fitness of things be assessed in terms of the return to the ordinary shareholders. and in 2007 the return was 59% by increasing 13% than previous year because of decrease in share holders fund and increase in profit.36 22.931. The ratio under reference serves this purpose.659.82 15. the ratio was 46%.18 28608.757.705.72 49.956.Return on Shareholder Funds The profitability of a firm from the owners’ point of view should therefore. S. In this company.379.50 10. It is calculated by dividing the profits after taxes and preference dividend by the average equity of the equity shareholders. V. company does not issue any preference share capital or debenture so that return on equity share holder was higher.53 47.

86 Assets Turnover Ratio 1.55 1. S.53 106449.92 2006 189.75 1.313.84 2007 204. We can see in the ratio that there was not efficient change in fluctuation of asset turnover. the ratio was 1.84 1. V.00 98195. Than after 0.33 82846.41 128432.34 lacks.93.90 1.73 lacks to Rs 146688.Assets Turnover Ratio The amount invested in business are invested in all assets jointly and sales are effected through them to earn profits so in order to find out relationship between total assets to sales total assets turnover is calculated.215 1.86 which was increase in 2005 and goes to 1. In 2004. After that ratio decrease and goes to 1.01 increase in 2006.95 1.86 Ratio 2008 2007 2006 2005 Year INTERPRETATION:The investment in assets from 2004 to 2008 had increased from Rs 72022.106. Sales ---------------------------Average Total Assets Assets Turnover Ratio = Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2 Net Sales Average Total Assets Ratio(Times) 2008 236. Institute of Management 62 .465 1.92 1.695.935 1.80 1.Dabur India Ltd 4 .93 1.957.85 1.84.93 2005 153.

80 3.28 23494. which is a signal to the management. the ratio was 4.108.70 2008 2007 2006 2005 Year INTERPRETATION: The Inventory Turnover Ratio suggests that the average inventory was turned over 3.40 4. S. A firm in such a case will be able to trade on a smaller margin of gross profit.942. The cost of material was continuously increased in all four year So that ratio was higher. V.Inventory Turnover Ratio This ratio is very important in judging the ability of management with which it can move the stock.63 3. Inventory Turnover Ratio = Cost of Goods Sold --------------------------Average Inventories Average Inventories = (Beginning Inventories + Ending Inventories) / 2 2008 Cost of Materials Average Inventory Ratio(Times) 110.685 3.88 3.93 3.38 3.34 4.772.20 4.30 20795. In 2007.25 17798.00 Ratio 3.70 Inventory Turnover Ratio 4. In 2005 the inventory turnover ratio was 3.13 3.70 to 4.Dabur India Ltd 5 .60 3. The formula to calculate this ratio is as under.13 times which was highest in all four year. Institute of Management 63 .88 2005 65.93 2007 97.70 times which was good for the company.13 times during the year.35 27979. A lower turnover indicates accumulation of slow moving Obsolete and low-quality goods. The higher the stock turnover ratio the more profitable the business would be.097.13 2006 80.

Net Fixed Assets Turnover Ratio: The Fixed Assets Turnover shows the efficiency & profitability of business by comparing the fixed assets with sales.39 2006 189. In 2006.22 2004 132.41 46.53 37.695.71 2005 153. Institute of Management 64 .33 29. S. Sales Fixed Assets Turnover Ratio = Net Fixed Assets Net Sales Fixed Assets Ratio 2008 236. Very high ratio and very low ratio are not favorable for the company.957.22 5. the ratio decrease and goes to 3.71 times to 5.00 2008 2007 2006 Year 2005 2004 5.32 Fixed Assets Turnover Ratio 6.006.450.956.63 5.916. The higher ratio shows that the fixed assets are using efficient manner to increase the sales.39 times which consider as a good. We can say in Dabur India ltd the ratio was between 3.20 5.71 times because of purchase of new assets.07 5.00 0.00 2.106. V.35 5.245.39 3.07 2007 204.02 5.Dabur India Ltd 6 .525.05 25.00 51.313.00 Ratio 4.71 5.32 INTERPRETATION:The Fixed Assets Turnover Ratio shows utilization of fixed assets for generating sales.30 3.

101.1 .17 4.649.20) (4.11 Corporate Tax on Dividend 1.12 0.38 0.234.917.66) Payables Increase/(Decrease) in Working (2.58) (4.87 149.11) 17.50 37.643.868.27 — 391.243. Cash Flow from Operating Activities Net Profit before Tax and extraordinary Items Add: Depreciation Fixed Assets Impairment Loss Loss on Sale of Fixed Assets Miscellaneous Exp.01 108.489.10 589.60 21.32) (7.92 (102.47 649. Written off Miscellaneous Exp.50 0.24 777.59 43.108.039.233.04 547.22 3.389.208.62 50.18) (273.02 (3.546.908.87 Tax Paid 5.573.75) 500.87 602.66) 6.89 104.05 984.669.692.415.20 27.89 44.15 28.028.02 2.17 16.66 0.12 16.78 S.00 7.679.50) (4.68 47.14 Capital Cash Generated from Operating 46.63) (5. V.171. Written off (Included in Director Remun) Interest Less: Dividend Received 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 MAR ' 05 MAR ' 04 38.94 1.84 0.48 2.485.00 198.443.91 1.18 1.873.91 27.275.092.90 400.949.36) 25.Cash flow statement MAR ' 08 MAR ' 07 MAR ' 06 A.005.82 2.76 1.10 31.85 426.537.659.59 22.88 83.37 3.236.976.49 20.00 7.02 (6.05 10.58 3.66) Decrease/(Increase) in Trade (10.35 580.92 (7.39 211.17 881.69 0.21 2.897.28 2.528.244.78 1.307.547.51 1.48 activities Interest Paid 1.48 10.980.429.31) (10.42 29.46 65.09 1.24 5.87 1.248.52 4.925.55 1.67 37.20 (8.852.858.36 404. Institute of Management 65 .516.537.481.351.98) 12.95 24.Dabur India Ltd Chapter – 6 6.00 21.72 (2.90) 7.00 407.287.53 195.55 1.30 40.983.62 533.16 1.80) Sale of Fixed Assets 77.694.800.63 964.47 304.651.528.30 0.604.40 0.615.610.205. Cash Flow from Investing Activities Purchase of Fixed Assets (12.222.503.35 83.700.444.57 887.24 21.54 Cash used(-)/(+)Generated for 38.39 1.07 27.328.668.28 22.28 96.132.13 4.563.96 Operating Activities (A) B.020.91 328.129.433.

020.612.19) (2.15 (266.73 ) (183.30 6.473.236.99 660.86) 1.76) 3.155.59) 11.95 1.632.97) (4.00 (1.303.00 6.64 2.10) 4.37) (1.135.Dabur India Ltd Purchases of Investment including Investment in Subsidiaries Sale of Investments Dividend Received Cash used(-)/(+)Generated for Investing Activities (B) C.339.63 143.870.23) (547.260.117.43) 1.786.589.721.46 1.473.817.756.48 0.65 0.826.02) (12.24) (6.31 672.22 S.40) (4.47) (17.50 69.17) 284.63 (2.30 2.65) (17.897.81 7.117.94) (8.297.938. 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 Deposits Repayment(-)/Proceeds(+) from other Unsecured Loans Payment of Loan Payment of Dividend Cash Used(-)/+(Generated) in Financing Activities (C) Net Inc(+)/Dec (-) in Cash And Cash equivalents (A+B+C) Cash and Cash equivalents Opening Balance Cash and Cash equivalents Closing Balance (295.29 4.020.322.643.98 (344.822.206. Institute of Management 66 .022.69) 5.48 0.81 3.01) (88.795.95 (959.68 (750.48 0.00 (3. V.98) (153.61) 0.8) (80.32 140.647.590.22 6.56) (12.875.65 (4.212.826.31) (8.656.68) (13.81 949.349.285.7) (7.72 2.08) (6.00 3.59 5.15) 2.90) 0.21) (2.298.03) (4.71 (457.84 83.66) 2.024.93 1.067.39 24.066.339.566.62 (23.0 0.066.666.020.684.) (144.29 5.39) 1.2) (4.878.63) (10.079.

Cash generated from operating activities is also highest in the 2008 as compare to the last five years. Institute of Management 67 . it may be because of high collection of debtors or sales of goods and services. S. The investing activity is highest in year 2008 in last five years. It may be because of the sales of the fixed assets or collection of loans. It shows that company has good liquidity because of increase in every year of the cash flows. There is a minor difference between the financing activities of the year 2007 & 2008 because of company issue shares little more than last year.Dabur India Ltd INTERPRETATION: It shows the cash inflow and out flow of the company. V. The highest cash equivalents in the year 2008 in last five years.

Company should have to try to decrease in sales and administrative expenses because there was a big gap between gross profit and Net profit. So it is good for the company. The company’s gross profit ratio was nearly 50% in all the year means company have a low expense on cost of goods sold. The net profit before interest and tax and Net profit after interest and tax were also increase in year by year. Both were increase nearly 200% in over all period. Institute of Management 68 . SUGGESTIONS Company should have to issues preference capital or debenture because vary low debt is also not good for the company. Company is highly depending on their own equity because company does not issue any debenture or preference capital. The balance carried over to balance sheet from profit and loss account was increase 383% in five years. So we can say company earned lot in this period.Dabur India Ltd Chapter – 7 Findings & Suggestions FINDINGS There was constantly increase in sales of the company and the expenditure was also increase but increase in sales was more than the proportion of increase in expenditure. V. The share holder funds and application of the fund was increase in near about 73% in given five year. If debt will increase than company can utilize money properly. While net profit was between 8% to 12% because of high sales and administrative expenses. S.

“Acquisition of Fem Care Pharma is in line with our strategy to aggressively expand Dabur’s scale of operations and strengthen its presence in the fast moving consumer goods (FMCG) space. The other brands in its portfolio include Oxybleach cream.Contemporary Issues in the Company Dabur India Acquires 72. FCPL. both for India and international markets.4 Crores and an enterprise valuation of approximately Rs 300 Crores of Fem Care Pharma Ltd. Dabur India Ltd. The board of directors of Dabur India Ltd approved the acquisition at a board meeting held in Mumbai today. Fem’s brands fit in well with Dabur’s future growth plans.75 crores in the first half of the 2008-09 fiscal on a turnover of Rs 54. Further. Mauritius. Dabur will make an open offer for an additional 20% shares in the Company as required under the takeover regulations.” said Dr. Stratum colour protecting hair conditioners. offering us a strong platform to enter newer product categories and markets. is best known for its brand ‘FEM’. Chairman. Malaysia. SAKA men’s bleach and Bambi fabric softeners. also has a sizeable international market presence in markets such as Yemen. which has a leadership position in the fairness bleach category and a strong market position in hair removal and liquid soap category. which reported a consolidated net profit of Rs 9.Dabur India Ltd Chapter – 8 8.45 crores. a leading player in the women’s skin care products market.1 .15% of Fem Care Pharma Ltd (FCPL). Botanica anti-ageing cream. Maldives. Anand Burman. The transaction ascribes a price per share of Rs 800.7 Crores in an all-cash deal. 2008 Dabur India Ltd today announced the acquisition of 72.15% of Fem Care Pharma November 23. for Rs 203. Fem Care Pharma Ltd. V. which translates into an equity valuation of Rs 282. Dabur also has the potential to extend the brand into newer and related skin care categories. This transaction would give Dabur an entry into the high-growth skin care market with an established brand name ‘FEM’. Institute of Management 69 . As with S. Oman etc. UAE. “The acquisition brings to Dabur a portfolio of well-known household brands that enjoy a pole position in their respective categories.

” said Ms Sunita Ramnathkar. V. Sunil H. “As Dabur gains access to Fem’s research capabilities. the Fem Care Pharma Ltd transaction too would offer substantial synergies for expanding the reach of Fem’s brands in all our geographies as well as better management of overall system costs. Fem Care Pharma Ltd. we believe it will be able to broaden the company’s product portfolio and further capitalize on the emerging opportunities in domestic and international markets. Dabur India Ltd. “The strengths of Dabur will help expand the distribution of Fem’s brands across India and fuel faster growth for the company. thereby enhancing shareholder value.” said Mr.Dabur India Ltd our previous acquisition and subsequent integration of Balsara’s Hygiene and Home products businesses. Pophale. KPMG Corporate Finance was the financial advisor to the promoters of Fem Care Pharma Ltd and Ambit Corporate Finance was the financial advisor to Dabur India Ltd. Chairman & Managing Director.” said Mr. both in India and abroad. Joint Managing Director. CEO. Institute of Management 70 . Sunil Duggal. Fem Care Pharma Ltd. S.

in Websites: www.daburindia.Y.in www.bseindia.Dabur India Ltd Chapter – 9 BIBLIOGRAPHY BOOKS M. Third Edition.K. Third Edition.business-standard.co.co. Search Engine: www.com www.kotaksecurities. V. Tata McGraw-Hill Publishing Limited. Institute of Management 71 . PHI Learning Private Limited. “Financial Management”. “Financial Accounting a Managerial Perspective” .googal.Khan and P.Jain. Narayanaswamy.com S. New Delhi.com www.