Half YearlyFinancial Report
DABUR INDIA LIMITED
2012-2013
Half YearlyFinancial Report
DABUR INDIA LIMITED
2012-2013
Dabur India Limited //Half Yearly Report 2012-13
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Content
Board of Directors 4
Management Discussion and Analysis 5
Auditor’s Report 8
Financial Statements 9
Consolidated Financial Statements 20
Dabur India Limited //Half Yearly Report 2012-13
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a trusted name in natural healthcare for over 100 years, is known for providing a range of efficacious and time-tested healthcare products based on the principles of Ayurveda.
a premium brand and a leader in its category, is one of the flagship brands and a popular name in the natural personal care space.
a tasty fun-filled digestive available in various forms - from tablets, traditional Churnas to modern formats like centre-filled candy - appealing to all age groups.
country’s leading brand of packaged fruit juices, provides the largest range of refreshing and healthy fruit juices that are 100 percent natural and free of preservatives.
a new member in the family of Dabur’s key brands, provides a range of herbal and natural products across various FMCG categories with a focus on providing quality and affordability.
Dabur India Limited //Half Yearly Report 2012-13
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BOARD OF DIRECTORSDr. Anand Burman ChairmanMr. Amit Burman Vice ChairmanMr. Saket Burman DirectorMr. Mohit Burman Director Mr. P D Narang DirectorMr. Sunil Duggal DirectorMr. R C Bhargava DirectorMr. P N Vijay Director Dr. S Narayan DirectorMr. Albert Wiseman Paterson DirectorDr. Ajay Dua DirectorMr. Sanjay K Bhattacharyya Director
SR GM (FINANCE) & COMPANY SECRETARYMr A. K. Jain
AUDITORSM/s G. Basu & Co.Chartered Accountants
INTERNAL AUDITORSPricewaterhouseCoopers Pvt. Ltd.
BANKERSPunjab National BankStandard Chartered BankThe Hongkong & Shanghai Banking Corporation Ltd.The Royal Bank of ScotlandCitibank N.A.HDFC Bank Ltd.IDBI Bank Ltd.
CORPORATE OFFICEDabur India Limited,Dabur Tower,Kaushambi, Sahibabad,Ghaziabad - 201 010, (U.P.), IndiaTel: 0120 - 3982000, 39412525Fax: 0120 - 4374935Website: www.dabur.comEmail: [email protected]
REGISTERED OFFICE8/3, Asaf Ali Road,New Delhi-110002, IndiaTel: 011-23253488
Dabur India Limited //Half Yearly Report 2012-13
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Management Discussion and AnalysisThe current macroeconomic environment continues to remain
challenging in the backdrop of weak global economic environment.
India’s GDP forecasts have been lowered, with the Reserve Bank of
India now forecasting a GDP growth rate of 6.5% for fiscal 2012-13.
The government has taken up the reform agenda and has initiated
steps to increase FDI (Foreign Direct Investment) in sectors such
as multi-brand retail, aviation, insurance etc. These initiatives may
bode well for the Indian economy going ahead.
Inflationary pressures still persist with the WPI hovering in the
7.5-8% range. Rate cuts from RBI are likely to come about in the
case of inflation sliding below RBI’s tolerance level.
During the monsoon season there were fears of drought like
conditions due to deficient rains, which eased towards the end
of the season with overall deficiency reducing to 8% of long term
average.
The FMCG sector continued to report good volume led growth in
revenues during the first half of fiscal 2012-13. Rural India, which
contributes to a third of the overall FMCG sector continued to grow
well driven by factors such higher MSPs (Minimum Support Prices)
for agricultural produce, employment guarantee schemes and
growth in services. Furthermore, aspiration levels continue to trend
upwards with rural consumers demanding branded products.
Recent reports indicate incremental consumption expenditure in
Rural India has been significantly ahead of Urban India during the
past few years.
Real GDP Growth Rate - YoY (%)
FY08 FY09 FY10 FY11 FY12
9.3%
6.7%8.4% 8.4%
6.5%
Source: CSO and RBI estimates
Source: Office of Economic Adviser
WPI based Inflation (%)
7.5% 7.5%7.6%
7.5%7.6%
7.8%
Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12
Source: Indian Meteorological Department (IMD)
Seasonal Rainfall (Jun-Sept 2012) (in mm)
816.3883.0
Actual Normal
Incremental consumption expenditure in 2011-12 over 2009-10
Urban Rural
29943750
Source: NSSO (National Sample Survey Organisattion) and CRISIL Estimates
in Rs. billion
Dabur India Limited //Half Yearly Report 2012-13
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Dabur Performance Overview
Dabur continued to perform well, with sales growing by 21.0%
to Rs. 2,984.6 crores in the first half of fiscal 2012-13. Input costs
pressures eased somewhat as compared to last year, with material
costs as % of sales declining to 49.7% in the first half of fiscal
2012-13 v/s 51.4% in the first half of fiscal 2011-12. We continue
to invest strongly behind our brands as reflected in a 46.8% surge
in our advertisement expenses during the first half of fiscal 2012-
13. EBITDA margins were at 17.8% in the first half of fiscal 2012-13
as compared to 18.5% in the first half of fiscal 2011-12. The Profit
after Tax grew by 16.6% to Rs. 351.8 crores in the first half of fiscal
2012-13.
Foods
Foods continued on the strong growth trajectory and grew by
26.9% to Rs. 337 crores during the first half of fiscal 2012-13, driven
by strong volume growth and new variants. New variants such as
Real Pomegranate and Apricot performed exceedingly well. The
company is in the process of introducing more variants and flavours
under both Real and Activ brands.
International Business
Dabur’s International Business grew by 24.4% in the first half
of fiscal 2012-13 and now contributes to almost a third of our
consolidated sales. The key growth markets have been the GCC
Consumer Care Business
The Consumer Care business grew by 13.9% to Rs. 1,585.6 crores
in the first half of fiscal 2012-13, with strong growths in Health
Supplements, OTC & Ethicals, Home Care and Skin Care portfolio.
Premium toothpaste portfolio registered strong growth while there
was some pressure on the economy toothpaste segment and
toothpowders, resulting in moderate overall growth in oral care.
Shampoo category bounced back during the half year period with
growth exceeding 30%.
Consumer Care Category Growth Rates (%)
Health
Supplements
Digestives
OTC &
Ethicals Home
CareHair
Care Oral
Care SkinCare
16.7%
10.9%
17.9%
11.8%
19.0%
7.5%
17.7%
H1 FY13
Dabur India Limited //Half Yearly Report 2012-13
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(Gulf Co-operative Council), Egypt, Nigeria, Bangladesh and
Nepal. In terms of product categories, hair creams, hair oils and
toothpastes performed well. The international business continued
to focus on innovation and launched new products such as Vatika
Hair Serum, Vatika Black Seed Enriched Hair Oil, professional range
of Shampoos and Conditioners, etc.
Sales & Distribution
After successful completion of our urban distribution enhancement
initiative viz. Project Speed, the rural distribution initiative, Project
Double is on track and should be complete in the second half of
fiscal 2012-13. As part of this the company is increasing its direct
presence in select rural geographies in order to enhance the reach
as well as quality of distribution and the product mix for rural
consumers. The initiative has enhanced our product width and
depth in the hinterland and we are witnessing good momentum
in sales.
Manufacturing
The progress of construction of our Sri Lanka plant is on track and
is likely to be complete by the end of fiscal 2012-13. In addition,
we are now in the process of setting up a manufacturing facility in
Bangladesh to cater to the fast growing local market.
We continue to undertake initiatives to improve sustainability,
encompassing energy and water conservation aspects. Some of
these have been commissioning of Bio Briqutte boilers and reuse
of ETP treated water in cooling towers at our plants.
Overall the company was able to manage and tide over the
challenges of inflation and adverse currency movements during
the half year period and reported double digit revenue and
profit growth. Continued investments behind brand building
and innovation coupled with the distribution enhancement
initiatives will enable the company to drive good revenue
growth going forward.
Dabur India Limited //Half Yearly Report 2012-13
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AUDITORS’ REPORT
To the Board of Directors,
Dabur India Limited,
We have audited the attached condensed Balance Sheet of Dabur India Limited as at 30th September, 2012 and its Statement of Profit & Loss and the Statement of Cash Flow for the half year ended on that date attached thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We hereby report that :
i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of audit.
ii. In our opinion, proper books of accounts, as required by law have been kept by the Company so far as appears from our examination of books of accounts.
iii. The Condensed Balance Sheet and Condensed Statement of Profit & Loss dealt with by this report are in agreement with the books of accounts.
iv. Condensed Balance Sheet, Condensed Statement of Profit & Loss and Statement of Cash Flow have been prepared in due compliances of accounting standards referred to in sub section (3c) of Section 211 of Companies Act 1956.
v. In our opinion and according to the information and explanations given to us, the said accounts read with selected explanatory notes appearing in Schedule “A” give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of Condensed Balance Sheet, of the State of Affairs of the Company as at 30th September, 2012;
b) In the case of Condensed Statement of Profit & Loss, of the Profit for the half year ended on that date; and
c) In the case of Statement of Cash Flow, of the cash flows for the half year ended on that date.
For G BASU & CO Chartered Accountants Firm Registration No. 301174E
ANIL KUMARPlace: New Delhi PartnerDate: 26th October, 2012 Membership No. 9390
Dabur India Limited //Half Yearly Report 2012-13
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CONDENSED BALANCE SHEETas at 30th September 2012
PARTICULARS As at As at
Sep 30’2012 Mar 31’2012
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
(Rs. in Lacs)
I EqUITY AND LIABILITIES 1. Share holders’ Funds a) Share Capital 17,429 17,421 b) Reserves And Surplus 1,27,554 1,12,906 2. Non-Current Liabilities a) Long Term Borrowings 73 114 b) Deferred Tax Liabilities (Net) 3,064 2,711 c) Long-Term Provisions 44,595 37,665 3. Current Liabilities a) Short-Term Borrowings 18,555 27,214 b) Trade Payables 23,205 32,779 c) Other Current Liabilities 42,003 31,689 d) Short-Term Provisions 19,098 21,574 Total 2,95,576 2,84,073II ASSETS 1. Non-Current Assets a) Fixed Assets i) Tangible Assets 58,570 57,819 ii) Intangible Assets 766 714 iii) Capital Work-In-Progress 1,595 1,158 b) Non-Current Investments 16,159 15,948 c) Long-Term Loans And Advances 40,345 33,990 d) Other Non-Current Assets 7,354 8,384 2. Current Assets a) Current Investments 36,822 39,324 b) Inventories 48,460 52,857 c) Trade Receivables 21,779 22,417 d) Cash And Cash Equivalents 38,282 26,129 e) Short-Term Loans And Advances 22,456 22,111 f) Other Current Assets 2,988 3,222 Total 2,95,576 2,84,073Accounting Policies and Notes to Accounts (A)
Dabur India Limited //Half Yearly Report 2012-13
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CONDENSED STATEMENT OF PROFIT AND LOSSfor the Quarter and Half Year ended 30th September, 2012
I Revenue from operations 1,04,278 87,900 2,06,025 1,72,570
II Other Income 2,162 1,265 4,324 2,715
III Total Revenue (I +II) 1,06,440 89,165 2,10,349 1,75,285 IV Expenses
Cost of materials consumed 38,204 37,200 77,394 71,731
Purchase of stock in trade 15,288 15,723 31,886 29,614
Changes in inventories of FG , WIP & Stock in trade
Finished Goods 189 (6,832) (137) (7,216)
Work in Progress 1,271 656 535 (235)
Stock in trade 167 6 537 -
Employee benefits expenses 7,104 6,164 13,559 12,102
Finance costs 895 138 1,064 794
Depreciation and Amortisation expenses 1,663 1,593 3,455 3,382
Other Expenses 22,109 16,896 47,374 35,942
Total Expense 86,890 71,544 1,75,667 1,46,114 (V) Profit before exceptional and extraordinary items and tax (III - IV) 19,550 17,621 34,682 29,171
(VI) Exceptional Items - - - -
(VII) Profit before extraordinary items and tax (V - VI) 19,550 17,621 34,682 29,171 (VIII) Extraordinary Items - - - -
(IX) Profit before tax (VII - VIII) 19,550 17,621 34,682 29,171 (X) Tax expense
(1) Current tax 3,912 3,525 6,939 5,837
(2) Deferred Tax 141 230 354 360
(XI) Profit/(Loss) for the year from continuing operations (IX - X) 15,497 13,866 27,389 22,974 (XII) Earnings per equity share ( before Extraordinary items)
(1) Basic 0.89 0.80 1.57 1.32
(2) Diluted 0.89 0.79 1.56 1.31
(XIII) Earnings per equity share (after Extraordinary items)
(1) Basic 0.89 0.80 1.57 1.32
(2) Diluted 0.89 0.79 1.56 1.31
Accounting Policies and Notes to Accounts (A)
DESCRIPTION For the For the For the six For the Six qtr. ended qtr. ended months ended months ended Sep 30’ 2012 Sep 30’ 2011 Sep 30’ 2012 Sep 30’ 2011
(Rs. in Lacs)
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
Dabur India Limited //Half Yearly Report 2012-13
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STATEMENT OF CASH FLOW(Pursuant to AS-3) indirect method for the period ended 30th September’2012
A. Cash Flow from Operating Activities
Net Profit Before Tax and Extraordinary Items 34,682 29,171 Add: Depreciation 2,309 1,834 Loss on Sale of Fixed Assets 23 19 Fixed Assets Discarded/Written Down - - Miscellaneous Exp. Written off 1,262 1,686 Provision for Contingent Liability - - Interest 1,064 794 Unrealised Loss on Financial Instruments Amortisation Cost (136) - Unrealised Loss / (Gain) in Foreign Exchange (266) 4,256 (114) 4,219 38,938 33,390 Less: Interest Received 3,698 2,343 Profit on Sale of Investment 483 293 Profit on Sale of Assets 6 4,187 42 2,678 Operating Profit before Working Capital Changes 34,751 30,712 Working Capital Changes Increase/(Decrease) in Inventories (4,397) 5,605 Increase/(Decrease) in Trade Receivables (638) 378 Increase/(Decrease) in Other Current Assets (980) - Decrease/(Increase) in Trade Payables and other Payables 420 8,718 Increase/(Decrease) in Working Capital (5,595) 14,701 Cash Generated from Operating Activities 40,346 16,011 Tax Paid 6,355 6,355 6,362 6,362
Cash Used(-)/(+)Generated for Operating Activities (A) 33,991 9,649
B. Cash Flow from Investing Activities
Acquisition of Fixed Assets (2,988) (6,000) Sale of Fixed Assets 57 90 Purchases of Investment (2,12,345) (1,53,501) Interest Received 3,156 1,507 Proceed of Sale of Investments 2,15,468 1,75,321 Repayment (-)/Proceeds(+) from Loan to Subsidiaries (550) (850)
Cash Used(-)/(+)Generated for Investing Activities (B) 2,798 16,567
(Rs. in Lacs)
PARTICULARS For the period ended For the period ended
Sep 30’2012 Sep 30’2011
Dabur India Limited //Half Yearly Report 2012-13
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STATEMENT OF CASH FLOW (Contd..)(Pursuant to AS-3) indirect method for the period ended 30th September’2012
C. Cash Flow from Financing Activities
Proceeds from Share Capital & Premium 4 6 Repayment(-)/Proceeds (+) of Long term secured Liabilities - (236) Repayment(-)/Proceeds(+) from Short Term Loans (8,392) 3,377 Repayment(-)/Proceeds(+) from Other Unsecured Loans (41) (9,128) Payment of Dividend (13,028) (11,293) Corporate Tax on Dividend (2,120) (1,836) Interest Paid (1,058) (786)
Cash Used(-)/+(Generated) in Financing Activities (C) (24,635) (19,896)
Net Increase(+)/Decrease (-) in Cash And Cash Equivalents (A+B+C) 12,154 6,320 Cash and Cash Equivalents Opening Balance 26,128 19,241 Cash and Cash Equivalents Closing Balance 38,282 25,561 Cash and Cash Equivalents (year end) 38,282 25,561 Balances with Banks without Restatement 37,970 25,293 Unrealised Gain/(Loss) on Foreign Exchange Fluctuation 283 236 Cheques / Drafts in Hand 1 - Cash-in-Hand 28 32
(Rs. in Lacs)
PARTICULARS For the period ended For the period ended
Sep 30’2012 Sep 30’2011
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
Dabur India Limited //Half Yearly Report 2012-13
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SCHEDULE ASelected Explanatory Notes
1. ACCOUNTING POLICIES
1.1 Basis of Preparation of Financial Statements The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian
GAAP. Accounts and disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard)
Rules, other pronouncements of ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable.
Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue,
expenses and contingent liability pertaining to year/period, the financial statements relate to. Actual result could differ from
such estimates. Any revision in accounting estimate is recognized prospectively from current year/period and material revision,
including its impact on financial statement, is reported in notes to accounts in the year/period of incorporation of revision.
1.2 Significant Accounting Policies The Company has applied the same accounting policies in this half yearly financial statements as have been applied in its
annual financial statements for the year ended 31st March, 2012 except for recognition of deferred tax on estimated basis as
against actual basis.
Preparation of Balance Sheet, Profit & Loss Account, Cash Flow Statement including disclosures made there on in notes to
accounts and condensed Balance Sheet and Profit and Loss Account have been made in terms of AS 25 mandated by ASB.
2. NOTES TO ACCOUNTS
2.1 Contingent Liabilities (Not provided for) :
A. Claims against the company not acknowledged as debts:
i. In respect of Civil Suits filed against the company Rs. 970 (previous year Rs. 770 ).
ii. In respect of Claims by Employees Rs. 51 (previous year Rs. 44 ).
iii. In respect of Sales Tax under appeal Rs. 1517 (previous year Rs. 1070).
iv. In respect of Excise Duty disputes pending with various authorities Rs. 7703 (previous year Rs. 7611)
v. In respect of Income tax under appeal Rs. 21 (previous year Rs. 319).
B. Guarantees given:
In respect of Guarantees furnished by the Company Rs. 152325 (previous year Rs. 122303)
C. Information pursuant to AS 29 on contingent liabilities provided for:
i) Brief particulars of provision under AS 29 towards liabilities disputed being carried over from previous year without adding to or
withdrawal therein /therefrom:
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
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Nature of
Liability
Particular of dispute Opening
Liability
Provision
made during
the period
Provision
adjusted during
the period
Closing
Provision
Forum where the dispute
is pending
Sales Tax Classification of Laldant
Manjan
36 0 0 36 Filed review application with
High Court
Entry Tax Entry tax on car 1 0 0 1
Sales Tax Classification of hajmola
Candy
28 0 0 28 Appeal pending before S T
Appellete
Sales Tax Tax Paid purchase 29 0 0 29 Pending before High Court
Excise Hajmola Candy
classification matter
109 0 0 109 Tribunal
Excise Capital Goods removal 30 0 0 30 DC Appeal
Total 233 0 0 233
ii) Resulting outflows against above disputed liabilities, if mature, are expected to be in succeeding year.
iii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.
D. Commitments:
Estimated amount of contract remaining to be executed on capital account Rs. 2132 (previous year Rs. 1665).
2.2 Related Party Disclosures in terms of AS 18 2.2.1 Enterprises where control exists:
1. Dabur Nepal Private Ltd. 2. Dabur (UK) Ltd.
3. Dabur Egypt Ltd. 4. Dabur International Limited
5. Asian Consumercare Private Limited 6. African Consumercare Limited
7. Asian Consumercare Pakistan (Pvt.) Limited 8. Naturelle LLC.
9. H & B Stores Limited. 10. Dermoviva Skin Essentials Inc.
11. Dabur Egypt Trading Ltd. 12. Hobi Kozmetik
13. Ra Pazarlama 14. Namaste Laboratories LLc, US
15. Hair Rejuvenation & Revitalization Nigeria Ltd 16. Healing Hair Lab International LLc, US
17. Urban Lab International LLC, USA 18. Dabur Lanka (Pvt.) Limited
19. Namaste Cosmetics LTDA, Brazil 20. Weikfield International(UAE) LLC upto 26.06.2012
2.2.2 Other related parties in transaction with the company
2.2.2.1 Associate/Joint Ventures:
Dabon International Pvt. Ltd. (Associate)
Forum 1 Aviation Limited
2.2.2.2 Key Management Personnel and relatives of such personnel:
Director : P D Narang
Sunil Duggal
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
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2.2.3. Related Party Transactions :
Related Party Transactions as on 30.09.2012
Subsidiary JV/Partner-
ship
Key Manage-ment personnel
Entity Under SignificantInfluence
Total Outstanding as on
period end
1. Purchase of Goods 16163 0 0 0 16163 23
(16211) (-) (-) (169) (16380) (35)
2. Sale of Goods 2902 0 0 - 2902 702
(2353) (-) (-) (-) (2353) (1766)
3. Royalty Expense 6 - - - 6 27
(5) (-) (-) (-) (5) (19)
4. General Expenses 0 307 - - 307 33
(-) (223) (-) (-) (223) (49)
5. Interest Received on Loan 0 - - - 0 0
(9) (-) (-) (-) (9) 0
6. Remuneration (Exg./Pension) - - 521 - 521 0
(-) (-) (1259) (-) (1259) 0
7. Employee Stock Option Scheme 163 - 554 - 717 0
(136) (-) (728) (-) (865) 0
8. Interest Received on Sec. Deposit - 1 - - 1 0
(-) (-) (-) (-) 0 0
9. loan Given 550 - - - 550 3200
(1600) - - - (1600) (2650)
10. Investment - - - - - 7125
(4489) (-) (-) (-) (4489) (7125)
11. Equity Contribution 0 - - - 0 7125
(1483) (-) (-) (-) (1483) (7125)
12. Security Deposit - - - - - 38
(-) (-) (-) (-) (-) (38)
13. Guarantees & Collaterals 29564 0 - - 29564 151255
(29189) (-) (-) (-) (29189) (121690)
Notes:
A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. Rs. 16001 (Rs. 16031)
B. Item referred to in 2 above includes Sales to Dabur International Ltd., Weikfield International (UAE) LLC and Naturelle LLC Rs. 437,
Rs. 0 and Rs. 967 (Rs. 380, Rs. 226 and Rs. 508) respectively.
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
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C. Item referred to in 9 above includes Loan given to Dabur International Ltd. and H & B Stores Ltd. Rs. Nil and Rs. 550 (Previous Year
Rs. 0 and Rs. 2650).
D. Item referred to in 13 above includes Guarantees & Collaterals to Dabur Egypt Ltd., Naturelle LLC, Asian Consumercare Pakistan
(Pvt.) Ltd., Asian Consumercare Pvt. Ltd., Dermoviva Skin Essentials Inc., Dabur International Ltd., Dabur Lanka (Pvt.) Ltd. and
Forum 1 Aviation Ltd Rs. 2168, Rs. 2114, Rs. Nil, Rs. Nil, Rs. 60513, Rs. 66693, Rs. 15987 and Rs. 714 (Rs. 3372, Rs. Nil, Rs. Nil, Rs.
Nil, Rs. 54940, Rs. 59103, Rs. 3561 and Rs. 714) respectively.
E. Figures in bracket relate to corresponding previous period for revenue items and preceding year end for balance sheet items.
2.3 AS 30 , 31 & 32:a. Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not being receivable/payable in
short term context), call for measurements at amortized value unless amortized value does not materially differ from unamortized
value or assets /liabilities are held at floating rate of interest.
Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on date, hereby described as
amortized value , has been considered on the basis of appropriate Government Bond rate ruling as on 30-09-2012 which is 8.15
% as against 8.4% ruling as on 31-03-2012. Such benchmarking of effective rate is attributed to expected cognizance taken by
government of the market risk , commodity price index, foreign exchange reserve, inflationary & deflationary impact on internal
rates & cyclic / non cyclic fluctuations in fiscal & monetary system for the purpose of arriving at the rate of bond.
b. Particulars on financial assets/liabilities where fair value/amortized cost differ from book balance.
Particulars Holding Price(Rs. lac)
Fair Value(Rs. lacs)
Profit / (Loss) (Rs.
lac)
Head of Account Profit / (loss) being Accounted
for
A. FINANCIAL ASSETS a. Held for Trading Mutual Funds
b. Available of Sale Government Bond
as on 30.09.2012as on 31.03.2012
as on 30.09.2012
as on 31.03.2012
2031512165
8792
8714
2045612231
9003
8792
14165
211
78
other IncomeOpening General Reserve
Investment Revaluation Reserve
Investment Revaluation Reserve
B. FINANCIAL INSTRUMENT a. Instrument hedging adverse currency fluctuation against Off Balance Exposure in Foreign Currency b. Instrument hedging adverse currency fluctuation against borrowing in foreign currency
as on 30.09.2012as on 31.03.2012
as on 30.09.2012as on 31.03.2012
0
0
-3710
-610-63
-3710
-610-63
Finance CostFinance Cost
Finance CostFinance Cost
Particulars OriginalAmount
DiscountedValue
Re-InstatedDiscounted
Value (Rs. lacs)
Profit / (Loss)
Head of Account Profit / (Loss) being Accounted
for
C. FINANCIAL LIABILITIES Long term Borrowing as on 30.09.2012
as on 31.03.2012162212
114164
1190
-548
Finance CostOpening General Reserve
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
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2.4 Outcome of test of impairment undertaken for cash generating units concluded against creation of provision against impairment
loss under AS-28.
2.5 During the period, the company has paid final dividend @ 75% (previous year 65%) amounting to Rs. 15190 (previous year Rs.
11315) in respect of financial year 2011-12 after approval to the effect in the AGM dated 17.07.2012.
2.6 The Board of Directors of the company has approved payment of interim dividend @ 65% (previous period 55%) amounting to Rs.
13167 (previous period Rs. 11136) including tax applicable thereon.
2.7 During the period the company has allotted 820357 (previous period 1323524) equity shares of Re 1/- each to the employees
upon their exercise of option under Employee Stock Option Scheme which includes allotment of 379175 equity shares worth Rs.
4 lacs against capitalization of share premium without consideration money received in cash. Besides, options against 611121
number of equity shares have been cancelled during the period following lapse of option under relevant scheme.
2.8 17576091 (previous period 189607840) equity shares of Re.1/- each are outstanding under “Employees Stock Option Scheme” as
on 30th September, 2012.
2.9 During the period company has invested Rs. 212269 (previous period Rs. 151987) in current investment.
2.10 During the period company has sold current investments amounting to Rs. 203570 (previous period Rs. 152858).
2.11 Investment in jointly controlled entities (JCE) – Information pursuant to AS-27 mandated by ASB :
1. Forum 1 Aviation Limited:-
(a) Share of the company in assets, outside liability, net worth and income and expenses not being accounted for herein work out
to Rs. 987 (previous year Rs. 1011), Rs. 376 (previous year Rs. 441), Rs.611 (previous year Rs. 114), Rs. 264 (previous period Rs. 177)
& Rs. 238 (previous period Rs. 150) retrospectively as per un-audited accounts of JCE.
(b) Stake of the company in terms of percentage of total subscribed and paid up capital of JCE is 14.28%. Said amount (Rs. 456)
appears under non-current trade investment in balance sheet of the company.
(c) Company’s commitment towards revenue expenditure of the JCE amounting to Rs. 307 (previous period Rs. 223) has been
charged to profit and loss account under the head general charges.
(d) No income from said investment, unless realized in cash, is recognized in this standalone account.
2. Dabon International Pvt Ltd :
Total investment of the company is Rs. 27 lacs which is 1 % of total stake. Since almost entire amount has already been provided
for with no further obligation accruing to the company in respect of the joint venture arrangement, proportional consolidation
of corresponding joint venture accounts has been done away with.
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
18
CON
SUM
ER C
ARE
BU
SIN
ESS
FOO
DS
OTH
ERS
UN
ALL
OCAT
ED T
OTA
L
Curr
ent
Perio
dPr
evio
us
Perio
dCu
rren
t Pe
riod
Prev
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Pe
riod
Curr
ent
Perio
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us
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dCu
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riod
Curr
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58,5
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,560
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,868
6,
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2,05
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71,8
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l Rev
enue
1,58
,555
1,
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98
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7 2,
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21
1,71
,848
RESU
LTSe
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t res
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-pe
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41,9
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0
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t41
,933
34
,512
4,
841
4,94
4 1,
234
269
(12,
262)
(9,7
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35,7
46
29,9
65
Inte
rest
exp
ense
In
tere
st in
com
eIn
com
e Ta
x(Cu
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t + D
e-fe
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)
1,06
4
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6,19
7
1,06
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794
6,19
7
Profi
t fr
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tivi
ties
41,9
33
34,5
12
4,84
1 4,
944
1,23
4 26
9 (2
0,61
9)(1
6,75
1)27
,389
22
,974
Extr
aord
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y ite
mM
inor
ity In
tere
st
Net
pro
fit
41,9
33
34,5
12
4,84
1 4,
944
1,23
4 26
9 (2
0,61
9)(1
6,75
1)27
,389
22
,974
OTH
ER I
NFO
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As
on
30/0
9/12
As
on
31/0
3/12
As
on
30/0
9/12
As
on
31/0
3/12
As
on
30/0
9/12
As
on
31/0
3/12
As
on
30/0
9/12
As
on
31/0
3/12
Segm
ent a
sset
sU
nallo
cate
d co
rpor
ate
asse
ts 9
0,52
9 8
9,28
7 1
8,70
7 1
5,92
4 2
1,93
3 1
3,03
1
1,57
,761
1
,60,
442
1,3
1,16
9 1
,57,
761
1,1
8,24
2 1
,60,
442
Tota
l ass
ets
90,
529
89,
287
18,
707
15,
924
21,
933
13,
031
1,5
7,76
1 1
,60,
442
2,8
8,93
0 2
,78,
684
Segm
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iabi
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sU
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s
15,
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13,
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942
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,29,
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,29,
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13,
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942
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,29,
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,53,
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Capi
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Exp
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1,7
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10,
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187
4
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270
1
,035
3
,507
2
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1
4,23
9
Dep
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(Rup
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re D
ata)
Not
e: 2
.12
INFO
RMAT
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PU
RSU
AN
T TO
AS
- 17
Dabur India Limited //Half Yearly Report 2012-13
19
2.13 Information (to the extent applicable) pursuant to AS 19 issued by ICAI: -
The future minimum lease payment under non-cancelable operating lease :-
Particulars Not Later than 1 Years Later than 1 year Not
later than 5 Years
Later than 5 Years
Building & Machine 12
(46)
6
(12)
0
(0)
Car
72
(47)
88
(71)
0
(0)
Lease rent recognized during the period Rs. 42 (previous period Rs. 32)
2.14 During the period, company has repaid Rs. Nil, Rs. 13659 and Rs. 50 on account of Term Loan from bank, Short Term Loan from
banks and Deferred Sales Tax respectively. Besides, it has also raised Rs. 30000 against issue of Commercial Paper during the
period, out of which Rs. 25000 has been repaid during the period itself.
2.15 Exchange Loss works out to Rs. 1526 (previous period Rs. 1567) and Exchange Gain of Rs. 1390 (previous period Rs. 1675) which
has been accounted for in Profit & Loss account as finance cost.
2.16 Employees related dues including post-separation benefits of directors have been accounted for on the basis of actuarial
computation under project unit credit method, demographic assumptions thereon remain same as that of preceding year except
for mortality rate within the age-group of 31 years to 44 years and expected return on planned assets considered at 14% and
9.25% as against respective assumptions at 13% and 9% in preceding financial year.
2.17 Calculation of EPS as per AS-20:
Particulars Apr. 2012 to Sep. 2012 Apr. 2011 to Sep. 2011
Profit after Tax (before and after adjustment of extraordinary items) 27,389 22,974
Weighted average no. of shares outstanding
Basic 1742602984 1741278349
Diluted 1753779883 1753405804
Earnings per share (of face value of Re 1/-)
Basic 1.57 1.32
Diluted 1.56 1.31
(Note: Profit figures are in Rs. Lacs)
2.18 All figures have been rounded off to nearest Rs. Lacs unless stated otherwise.
2.19 Quarter-I figures appearing in condensed Profit & Loss Account in schedule –A are not based on audited figures.
2.20 Figures of earlier period/year have been rearranged in terms of current period grouping as and when necessary.
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
20
AUDITORS’ REPORT
To the Board of Directors,
Dabur India Limited,
We have audited the attached condensed consolidated balance sheet of Dabur India Limited group, as at 30th September 2012 and also the condensed consolidated statement of profit and loss and the consolidated statement of cash flow for the half year ended on that date annexed thereto.
These financial statements are the responsibility of the Dabur India Ltd.’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not audit the financial statement of one Joint Venture Entity, whose financial statements reflect total assets of Rs.986 lacs as at 30th September, 2012, the total profit of Rs.25 lacs and cash outflows amounting to Rs.7 lacs for the half year then ended. Financial statements and other financial information of the subsidiary have been audited by other auditors, whose reports have been furnished to us, and our opinion is based solely on the report of other auditors. Accounts of the joint venture have been consolidated on the basis of un-audited accounts certified by the management.
We report that the condensed consolidated financial statements have been prepared by the Dabur India Ltd.’s management in accordance with the requirements of AS-21 on consolidated financial statement and AS 27 on Financial reporting of interest in Joint Ventures and AS-25 on Interim Financial reporting issued by the Institute of Chartered Accountants of India.
Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial information of the components, and to the best of our information and according to the explanations given to us, we are of the opinion that the attached condensed consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of the condensed consolidated balance sheet, of the state of affairs of Dabur India Ltd. group as at 30th September, 2012.
b) In the case of the condensed consolidated statement of profit and loss, of the profit of Dabur India Ltd. group for the half year ended on that date; and
c) In the case of the consolidated statement of cash flow, of the cash flows of Dabur India Ltd. group for the half year ended on that date.
For G BASU & CO Chartered Accountants Firm Registration No. 301174E
ANIL KUMARPlace: New Delhi PartnerDate: 26th October, 2012 Membership No. 9390
CONSOLIDATED FINANCIAL STATEMENTS
Dabur India Limited //Half Yearly Report 2012-13
21
CONDENSED CONSOLIDATED BALANCE SHEETas at 30th September 2012
I EqUITY AND LIABILITIES 1. Share holder’s Funds a) Share Capital 17,429 17,421 b) Reserves and Surplus 1,72,600 1,54,297 2. Minority Interest 365 303 3. Non-current liabilities a) Long Term borrowings 53,176 68,302 b) Deferred Tax Liabilities (Net) 3,208 2,740 c) Other long term liabilities 298 - d) Long-term provisions 62,527 57,993 4. Current Liabilities a) Short-term borrowings 40,039 34,091 b) Trade payables 31,651 25,808 c) Other current liabilities 69,835 77,127 d) Short-term provisions 27,738 24,149 Total 4,78,866 4,62,231 II ASSETS 1. Non-current assets a) Fixed Assets i) Tangible assets 87,351 84,225 ii) Intangible assets 79,713 79,898 iii) Capital work-in-progress 4,422 2,676 b) Non-current investments 9,139 8,928 c) Long-term loans and advances 40,983 37,269 d) Other non-current assets 9,070 10,192 2. Current assets a) Current investment 36,844 39,324 b) Inventories 74,432 82,392 c) Trade receivables 42,579 46,168 d) Cash and cash equivalents 59,686 41,842 e) Short-term loans and advances 28,378 26,096 f) Other current assets 6,269 3,221 Total 4,78,866 4,62,231
Accounting Policies and Notes to Accounts (A)
(Rs. in Lacs)
PARTICULARS As at As at
Sep 30’2012 Mar 31’2012
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
Dabur India Limited //Half Yearly Report 2012-13
22
CONDENSED CONSOLIDATED STATEMENT OF PROFIT & LOSS ACCOUNTfor the six months ended 30th September 2012
I Revenue from operations 2,99,922 2,47,700
II Other Income 4,675 2,861
III Total Revenue (I +II) 3,04,597 2,50,561 IV Expenses
Cost of materials consumed 1,17,675 1,10,473
Purchase of stock in trade 26,931 23,126
Changes in inventories of FG , WIP & Stock in Trade
Finished Goods 861 (7,192)
Work in Progress 66 304
Stock in trade 2,877 0
Employee benefits expenses 22,738 18,925
Finance cost 3,614 2,983
Depreciation & Amortisation Expenses 5,372 5,006
Other Expenses 80,256 59,266
Total Expense 2,60,390 2,12,891 (V) Profit before exceptional and extraordinary items and tax (III - IV) 44,207 37,670
(VI) Exceptional Items (466) 0
(VII) Profit before extraordinary items and tax (V - VI) 43,741 37,670 (VIII) Extraordinary Items 8 0
(IX) Profit before tax (VII - VIII) 43,749 37,670 (X) Tax expense
(1) Current tax 7,933 6,961
(2) Deferred Tax 486 535
(XI) Profit/(Loss) for the year from continuing operations (IX - X) 35,330 30,174 (XII) Minority Interest 153 17
(XIII) Profit after Minority Interest 35,177 30,157 (XIV) Earnings per equity share ( before Extraordinary items)
(1) Basic 2.03 1.73
(2) Diluted 2.01 1.72
(XV) Earnings per equity share ( After Extraordinary items)
(1) Basic 2.03 1.73
(2) Diluted 2.01 1.72
Accounting Policies and Notes to Accounts (A)
(Rs. in Lacs) DESCRIPTION For the period ended For the period ended Sep 30’2012 Sep 30’2011
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
Dabur India Limited //Half Yearly Report 2012-13
23
STATEMENT OF CASH FLOW(Pursuant to AS-3) Indirect Method
A. Cash Flow From Operating Activities
Net Profit Before Tax, Exceptional and Extraordinary Items 44,207 37,670 Add: Depreciation 4,060 3,289 Loss on Sale of Fixed Assets 109 65 Fixed Assets Discarded/Written Down 7 - Transaltion Reserve (4,643) - Miscellaneous Exp. Written off 1,309 1,686 Interest 3,614 2,983 Unrealised Loss on Financial Instruments Amortisation Cost (136) - Unrealised Loss / (Gain) In Foreign Exchange (266) 4,054 (5,556) 2,467 48,261 40,137 Less: Interest Received 4,045 2,476 Profit on Sale of Investment 483 293 Profit on Sale of Assets 6 4,534 55 2,824 Operating Profit Before Working Capital Changes 43,727 37,313 Working Capital Changes Increase/(Decrease)in Inventories (7,960) 6,100 Increase/(Decrease) in Trade Receivables (3,591) 8,024 Increase/(Decrease) in Other Current Assets 5,330 - Decrease/(Increase) in Trade Payables And Other Payables 4,307 10,114 Increase/(Decrease) in Working Capital (1,914) 24,238 Cash Generated From Operating Activities 45,641 13,075 Tax Paid 13,323 13,323 7,059 7,059
Cash Used(-)/(+)Generated For Operating Activities (A) 32,318 6,016
B. Cash Flow From Investing Activities
Acquisition of Fixed Assets (9,312) (11,308) Sale of Fixed Assets 454 662 Purchases of Investment (2,12,345) (1,53,501) Interest Received 4,045 2,476 Proceed of Sale of Investments 2,15,234 1,75,791 Repayment (-)/Proceeds(+) from Loan to Subsidiaries - -
Cash Used(-)/(+) Generated for Investing Activities (B) (1,924) 14,120
(Rs. in Lacs)
PARTICULARS For the period ended For the period ended Sep 30’2012 Sep 30’2011
Dabur India Limited //Half Yearly Report 2012-13
24
STATEMENT OF CASH FLOW (Contd..)(Pursuant to AS-3) Indirect Method
C. Cash Flow From Financing Activities
Proceeds From Share Capital & Premium 4 6 Repayment(-)/Proceeds (+) of Long Term Secured Liabilities 298 3,036 Repayment(-)/Proceeds(+) from Short Term Loans 5,948 (259) Repayment(-)/Proceeds(+) from other Unsecured Loans - (611) Payment of Dividend (13,066) (11,293) Corporate Tax on Dividend (2,120) (1,837) Interest Paid (3,614) (2,999)
Cash Used(-)/+(Generated) In Financing Activities (C) (12,550) (13,957)
Net Increase(+)/Decrease (-) In Cash And Cash Equivalents (A+B+C) 17,844 6,179 Cash And Cash Equivalents Opening Balance 41,842 27,242 Cash And Cash Equivalents Closing Balance 59,686 33,421
Cash And Cash Equivalents Balances With Banks 57,224 32,976 Cheques / Drafts In Hand 210 - Cash-In-Hand 1,944 217 Unrealized Gain/(Loss) On Foreign Exchange 308 228
(Rs. in Lacs)
PARTICULARS For the period ended For the period ended Sep 30’2012 Sep 30’2011
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
Dabur India Limited //Half Yearly Report 2012-13
25
SCHEDULE ASelected Explanatory Notes
1. ACCOUNTING POLICIES
1.1 Accounting convention: The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian
GAAP. Accounts and disclosure thereon comply with the Accounting Standards specified in Companies (Accounting Standard)
Rules, other pronouncements of ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable.
Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue,
expenses and contingent liability pertaining to year/period, the financial statements relate to. Actual result could differ from
such estimates. Any revision in accounting estimate is recognized prospectively from current year/period and material revision,
including its impact on financial statement, is reported in notes to accounts in the year/period of incorporation of revision.
1.2 Body Corporate under Consolidation The Consolidated Financial Statement relates to:-
Dabur India Limited (the parent company)•
H&B Stores Limited (a wholly owned subsidiary company incorporated in India)•
Dabur International Ltd., (a wholly owned subsidiary body corporate incorporated in Isle of MAN) •
Dabur (UK) Ltd. (a wholly owned subsidiary body corporate incorporated in British Virgin Island, 100% stake wherein is held by •
Dabur International Ltd.)
Dabur Nepal Pvt. Ltd. (a subsidiary body corporate incorporated in Nepal, 97.5% stake wherein is held by Dabur International •
Ltd.)
Dabur Egypt Ltd. (a wholly owned subsidiary body corporate incorporated in Egypt, 76% & 24% of stake wherein are held by Dabur •
(U.K.)Ltd. and Dabur International Ltd. respectively)
Asian Consumercare Pvt. Ltd. (a subsidiary body corporate incorporated in Bangladesh, 76% stake wherein is held by Dabur •
International Ltd.)
African Consumercare Ltd (a wholly owned subsidiary body corporate incorporated in Nigeria, 90% stake wherein is held by •
Dabur International Ltd & 10% stake held by Dabur (UK) Ltd )
Asian Consumercare Pakistan (Pvt.) Ltd (a wholly owned subsidiary body corporate incorporated in Pakistan, 99.99% stake where •
in is held by Dabur International Ltd)
Naturelle LLC (a subsidiary body corporate incorporated in Emirate of RAS AI Khaimah, 100% stake wherein is held by Dabur •
International Ltd)
Dabur Egypt Trading Ltd. (a wholly owned subsidiary body corporate, incorporated in Egypt, 99% & 1% of stake wherein are held •
by Dabur International Ltd. and Dabur Egypt Ltd. respectively)
Dermoviva Skin Essentials INC (a wholly owned subsidiary body corporate incorporated in USA, 97.79% and 2.21% stakes wherein •
are held by Dabur International Ltd & Dabur India Ltd respectively
Namaste Laboratories LLC (a wholly owned subsidiary body corporate, incorporated in USA, 100% right wherein is exercised by •
Dermoviva Skin Essentials INC)
Urban laboratories International LLC (a wholly owned subsidiary body corporate incorporated in USA, 100% right wherein is •
(Rs. in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
26
exercised by Namaste Laboratories LLC)
Healing Hair Laboratories International LLC (a wholly owned body corporate incorporated in USA, 100% rights wherein is exercised •
by Namaste Laboratories LLC)
Namaste cosmetics Ltd. (a wholly owned body corporate incorporated in Brazil, 100% rights wherein is exercised by Namaste •
Laboratories LLC)
Two wholly owned overseas subsidiary body corporates incorporated in Turkey named Hobi Kozmetik and RA Pazarlama, 100% •
stake in each is held by Dabur International Ltd
Dabur Lanka (Pvt) Ltd (a wholly owned subsidiary body corporate incorporated in Sri Lanka 100% stake wherein is held by Dabur •
International Ltd.)
In addition to the above, proportionately consolidated herein is the accounts of Forum 1 Aviation Ltd.( a domestic corporate entity
jointly controlled by parent company with others, stake of parent company being 14.28% therein) on the basis of un-audited
results.
1.3. Significant Accounting Policies
a) Accounting policies and principles of consolidation followed herein remain in terms of same applied in consolidated financial
statements for the year ended 31st March 2012 except for treatment of deferred tax which has been calculated on estimated
basis.
b) Preparation of CFS including disclosures made therefore and condensation of Balance Sheet and Profit and Loss Account have
been made in terms of requirement of AS 25 mandated by ASB.
2. NOTES TO ACCOUNTS
2.1. All amounts in the financial statements are rounded off to nearest Rupees Lacs, except for those specifically stated otherwise.
2.2. Contingent Liabilities :
a) Claims against the company not acknowledged as debts:
i) In respect of civil suits filed by third parties Rs. 992 (previous year Rs. 791)
ii) In respect of claims by employees Rs. 51 (previous year Rs. 44)
iii) In respect of excise duty disputes pending with various judicial authorities Rs. 7703(previous year Rs. 7611)
iv) In respect of Sales Tax under appeal Rs. 1681 (previous year Rs. 1234)
v) In respect of Income tax under appeal Rs. 306 (previous year Rs. 386)
b) Guarantees Given :
In respect of Guarantees furnished by the company Rs. 3047 (previous year Rs. 2867)
c) Information pursuant to AS 29:
Brief particulars of provisions on disputed liabilities provided for :
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
27
Nature of Liability Particular of
dispute
Opening
Liability
Provision
made during
the period
Provision adjusted
during the period
Closing
Provision
Forum where the dispute
is pending
Sales Tax Classification of
Laldant Manjan
36 0 0 36 Filed review application
with High Court
Entry Tax Entry tax on car 1 0 0 1 Appeal pending before
D.C.
Sales Tax Classification of
hajmola Candy
28 0 0 28 Appeal pending before S T
Appellete
Sales Tax Tax Paid
purchase
29 0 0 29 Pending before High Court
Excise Capital Goods
removal
30 0 0 30 DC appeal
Excise Hajmola Candy
Classification
109 0 0 109 Tribunal
General Expense Product claim
lodged by third
party
33 0 0 33 Management
Income Tax Ex promoter USA
Liability
20 0 0 20 Management
Total 286 0 0 286
i) Resulting outflows against above liabilities pending before Sales Tax DC/Tribunal/High court/management, if mature, are
expected to be in succeeding financial year.
ii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.
d) Consideration money, towards acquisition of USA based entities ,contingently payable and provided for include Rs 18217
representing expected amount payable by the group over a period of 3 years to their erstwhile promoters (entrusted with the
charge of management of Namaste Laboratories LLC till date) subject to their achievement of year wise target as per earn-out
agreement. Rs.2250 approximately has been paid/adjusted against year opening due during the period pursuant to fulfillment of
first year’s target by the management with corresponding withdrawal of requisite provision. Considering confidence of the group
on the ability of erstwhile promoters to achieve targets laid down in reasonable terms, aforesaid provision has been retained in
accounts within the meaning of AS 29.
e) Commitments: Estimated Amount of contract remaining to be executed on Capital Account Rs. 13503 (previous year Rs. 6467).
2.3 Related party disclosures ( Pursuant to AS -18 )
2.3.1 Enterprise where control exists: None.
2.3.2 Other related parties in transaction with the group :
2.3.2.1 Associate - ACI Ltd., Bangladesh
2.3.2.2 Joint Venture - Forum 1 Aviation Limited
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
28
2.3.2.3 Key Management Personnel and relatives of such personnel: Director Relatives P D Narang Sunil Duggal Anup Sharma Rukma Rana Sikandar T Tiwana Mete Buyurgan Gary Gardner Kyle Gardner Clyde Burks
2.3.3 Related Party Transactions:
Related Parties Transaction Consolidated as on 30.09.2012
Particulars JV/Partnership
Key Management
Personal
Relatives of Key Management
personnel
Entity Under SignificantInfluence
Total Outstanding as on
period end
1. Purchase of Goods 0 0 0 0 0 0
0 0 0 (169) (169) 0
2. General Expenses 238 - 0 - 238 0
(223) - 0 - (223) (49)
3. Interest Received on Security 1 0 - 0 1 0
0 0 0 0 0 0
4. Remuneration/Exg./Pension 0 852 0 0 852 0
0 (1382) 0 0 (1382) 0
5. Employee Stock Option Scheme 0 554 - 0 554 554
0 (728) 0 0 (728) (1290)
6. Staff Welfare 0 0 71 0 71 0
0 0 (1) 0 (1) 0
7. Security Deposit - - - - - 38
- - - - - (38)
8. Guarantees & Collaterals 0 0 0 0 0 714
0 0 0 0 0 (714)
2.4 AS 30 , 31 & 32:
a. Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not being receivable/payable in
short term context), call for measurements at amortized value unless amortized value does not materially differ from unamortized
value or assets /liabilities are held at floating rate of interest.
Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on date, hereby described as
amortized value , has been considered on the basis of appropriate Government Bond rate ruling as on 30-09-2012 which is 8.15
% as against 8.4% ruling as on 31-03-2012. Such benchmarking of effective rate is attributed to expected cognizance taken by
government of the market risk , commodity price index, foreign exchange reserve, inflationary & deflationary impact on internal
rates & cyclic / non cyclic fluctuations in fiscal & monetary system for the purpose of arriving at the rate of bond.
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
29
b. Particulars on financial assets/liabilities where fair value/amortized cost differ from book balance.
Particulars Holding Price
(Rs. lac)
Fair Value(Rs. lacs)
Profit / (Loss)
(Rs. lac)
Head of Account Profit / (lose) being Accounted for
A. FINANCIAL ASSETS a. Held for Trading Mutual Funds
b. Available of Sale Government Bond
as on 30.09.2012as on 31.03.2012
as on 30.09.2012as on 31.03.2012
2031512165
87928714
2045612231
90038792
14165
21178
other IncomeOpening General Reserve
Investment Revaluation ReserveInvestment Revaluation Reserve
B. FINANCIAL INSTRUMENT a. Instrument hedging adverse currency fluctuation against Off Balance Exposure in Foreign Currency b. Instrument hedging adverse currency fluctuation against borrowing in foreign currency
as on 30.09.2012as on 31.03.2012
as on 30.09.2012as on 31.03.2012
0
0
-3710
-610-63
-3710
-610-63
Finance CostFinance Cost
Finance CostFinance Cost
Particulars OriginalAmount
Discount-ed
Value
Re-InstatedDiscounted
Value(Rs. lacs)
Profit / (Loss) Head of Account Profit / (lose) being Accounted
for
C. FINANCIAL LIABILITIES Long term Borrowing as on 30.09.2012
as on 31.03.2012162212
114164
1190
-548
Finance CostOpening General Reserve
2.5 The Board of directors of parent company has approved payment of interim dividend @ 65% (previous period 55%) amounting to
Rs. 13167 (previous period Rs. 11136) including tax applicable thereon.
2.6 During the period, the parent company has paid final dividend @ 75% (previous year 65%) amounting to Rs. 15190 (previous
period Rs. 11315) in respect of financial year 2011-12 after approval to the effect in the AGM dated 17.07.2012.
2.7 During the period the parent company has allotted 820357 (previous period 1323524) equity shares of Re 1/- each to the
employees upon their exercise of option under Employee Stock Option Scheme which includes allotment of 379175 equity shares
worth Rs. 4 lacs against capitalization of share premium without consideration money received in cash. Besides, options against
611121 number of equity shares have been cancelled during the period following lapse of option under relevant scheme.
2.8 17576091 (previous period 18960784) equity shares of Re.1/- each are outstanding under “Employees Stock Option Scheme” as on
30th September, 2012
2.9 During the period company has invested Rs. 212269 (previous period Rs. 151987) in current investment.
2.10 During the period company has sold current investments amounting to Rs. 203570 (previous period Rs. 176763).
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
30
CON
SUM
ER C
ARE
BUSI
NES
SFO
OD
SRE
TAIL
OTH
ERS
UN
ALLO
CATE
D T
OTA
L CO
NSO
LI-
DAT
ED
Curre
nt
Perio
dPr
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us
Perio
dCu
rrent
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riod
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Pe
riod
Curre
nt
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us
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dCu
rrent
Pe
riod
Prev
ious
Pe
riod
Curre
nt
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rrent
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REVE
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tern
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ales
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r-seg
men
t sal
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43,8
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738
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,133
6,21
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98,4
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91
Tota
l Rev
enue
2,43
,857
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82
38,7
29
30,4
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2,73
8 1,
787
13,1
33
6,21
4 2,
98,4
57
2,46
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RESU
LTSe
gmen
t res
ult
Una
lloca
ted
corp
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pens
es52
,940
45,0
726,
676
5,80
7-5
40-5
371,
278
319
12,5
3310
,008
60,3
5312
,533
50,6
6110
,008
Ope
ratin
g pr
ofit
52,9
40
45,0
72
6,67
6 5,
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(540
)(5
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8)47
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rest
exp
ense
In
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st in
com
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x(Cu
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+ D
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3,61
4
8,41
9
2,98
3
7,49
6
3,61
4
8,41
9
2,98
3
7,49
6
Prof
it fr
om o
rdin
ary
activ
ities
52,9
40
45,0
72
6,67
6 5,
807
(540
)(5
37)
1,27
8 31
9 (2
4,56
6)(2
0,48
7)35
,787
30
,174
Exce
ptio
nal i
tem
/Ext
raor
dina
ry It
ems
Min
ority
Inte
rest
458
153
1745
815
317
Net
pro
fit52
,940
45
,072
6,
676
5,80
7 (5
40)
(537
)1,
278
319
(25,
177)
(20,
504)
3,51
76
30,1
57
OTH
ER IN
FORM
ATIO
NAs
on
30/0
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As o
n 31
/03/
12As
on
30/0
9/12
As o
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/03/
12As
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30/0
9/12
As o
n 31
/03/
12As
on
30/0
9/12
As o
n 31
/03/
12As
on
30/0
9/12
As o
n 31
/03/
12As
on
30/0
9/12
As o
n 31
/03/
12
Segm
ent a
sset
sU
nallo
cate
d co
rpor
ate
asse
ts 1
,80,
706
1,8
7,85
0 4
2,78
5 3
8,03
5 2
,888
1
,545
2
2,92
0 1
3,83
1
2,23
,496
2,07
,429
2
,49,
299
2,2
3,49
6 2
,41,
261
2,0
7,42
9
Tota
l ass
ets
1,8
0,70
6 1
,87,
850
42,
785
38,
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2,8
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1,5
45
22,
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13,
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,07,
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,48,
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iabi
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ate
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s 5
9,56
0 7
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1 1
6,28
0 2
,527
1
,110
18,
318
10,
237
1,
87,9
09
1,8
5,42
0 1
,00,
926
1,8
7,90
9 9
8,76
5 1
,85,
420
Tota
l lia
bilit
ies
59,
560
71,
138
20,
521
16,
280
2,5
27
1,1
10
18,
318
10,
237
1,8
7,90
9 1
,85,
420
2,8
8,83
6 2
,84,
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Capi
ltal E
xpen
ditu
re 5
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1
0,44
2 5
15
4,3
08
39
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5
7 5
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0
Dep
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ash
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oth
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an
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ecia
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2,0
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1
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9
1 1
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90
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1
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1
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3
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,060
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,312
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(Rup
ees
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re D
ata)
2.11
IN
FORM
ATIO
N P
URS
UAN
T TO
AS
- 17
ISSU
ED B
Y IC
AI.
Dabur India Limited //Half Yearly Report 2012-13
31
2.12 Information (to the extent applicable) pursuant to AS 19 issued by ICAI:
The future minimum lease payment under non-cancelable operating lease :
Particulars Not Later than 1 year Later than 1 year not later
than 5 years
Later than 5 years
Building & Machine 1073 2352 373
(792) (1845) (343)
Car 72 88 0
(47) (71) (0)
Lease rent recognized during the period Rs. 124 (previous period Rs. 254)
2.13 Repayment of debt during the period:
Short Term loan from bank 7590
Besides, parent company has raised Rs. 30000 against issue of Commercial Paper during the period, out of which Rs. 25000 has
been repaid during the period itself.
2.14 Investment in joint venture :
Forum 1 Aviation Ltd :
(i) Incorporated in CFS on proportionate basis are the following assets and liabilities as on 30.09.12 and income and expenses for
the half year ended on that date of Forum 1 Aviation Ltd (a JCE, the stake of parent company therein being 14.28%) based on
its un-audited financial statements.
Particulars As on 30.09.2012 As on 31.03.2012
Assets Liabilities Assets Liabilities
Secured Loan 302 357
Creditors 36 46
Deposits 38 38
Fixed Assets 654 679
Investment 21 1
Advance to employees 1 1
Cash & Bank 20 27
Debtors 24 47
Other advances 267 256
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
32
ITEMS For Half Year Ended
30.09.2012 31.09.2011
INCOME
Revenue from Flying 263 177
Other Income
Total 263 177
EXPENSES
Operational Expenses 126 37
Payment to and provisions for employees 27 23
Administrative expenses 67 67
Financial expenses 18 23
Total 238 150
Profit (Forms part of profit in consolidated Profit & Loss Account) 25 27
(ii) Group commitment towards revenue expenditure of the JCE amounting to Rs. 307 ( previous period Rs. 223) has been charged to
profit and loss account under the head general charges.
2.15 (a) Pursuant to Weikfield International(UAE) LLC leaving business combination following disposal of its stake by the group ,following
assets & liabilities made their exit from the group accounts:
A. Assets Goodwill(consolidation) 225 Tangible Fixed Assets 144 Trade Receivable 24 Inventories 1 Cash & Cash Equivalent 3 397 B. Liabilities(Minority Interest) 101 C. Net assets(A-B) 296 D. Consideration money received 55 E. Deficit 241 F. Goodwill charged-off 225 G. Loss on sale of subsidiary(accounted for as exceptional item) 466
(Rupees in lacs, except Share Data)
Dabur India Limited //Half Yearly Report 2012-13
33
(b) Exit of the subsidiary necessitated following adjustments in reserves:
A. Loss on sale of subsidiary charged against surplus as exceptional item 466
B. Accumulated Reserve forming part of General Reserve towards the subsidiary transferred to surplus 26
C. Adjusted against Capital Reserve 440
(c) During the quarter Namaste Cosmetics LLC, a new body corporate has been formed in Brazil as a wholly owned subsidiary, 100%
rights therein are held by Namaste Laboratories LLC incorporated in USA.
(d) Aforesaid exit and entry from/in business combinations did not have any material impact on CFS.
2.16 Extra-ordinary items relate to prior period adjustments in net perspective.
2.17 Employees related dues including post-separation benefits of directors pertaining to employment in India & directorship of
parent company have been accounted for on the basis of actuarial computation under project unit credit method, demographic
assumptions thereon remain same as that of preceding year except for mortality rate within the age-group of 31 years to 44
years and expected return on planned assets considered at 14% and 9.25% as against respective assumptions at 13% and 9% in
preceding financial year.
2.18 Figures of earlier period/year have been rearranged in terms of current period grouping as and when necessary.
(Rupees in lacs, except Share Data)
For Dabur India Limited As per our report of even date attachedDr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: 301174E A.K. JAIN , Senior G.M.(Finance) Cum Company Secretary ANIL KUMARPlace: New Delhi Partner Date: 26th October, 2012 Membership No: 9390
DABUR INDIA LIMITEDKaushambi, Sahibabad - 201010
Ghaziabad (U.P.), India.Tel: 0120-3982000, 3962100
www.dabur.comE-mail: [email protected]