Ar March 2003 - Only Consolidated

auditors’ report on consolidated financial statement ○

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We have examined the attached consolidated balance sheet

Subject to Accounting Policy of the investments held by the

of Dabur India Limited and its subsidiaries (“the group”) as at

parent Company and gradual amortization of advertisement

31st March, 2003 and the consolidated profit and loss account

and publicity expenses of Dabur Foods Ltd. as against parent

and the consolidated cash flow statement for the year ended

Company’s policy of charging the same in the year of

on that date attached thereto.

incurrence thereby adding to profit and miscellaneous

These financial statements are the responsibility of Dabur

expenditure by Rs.114 lacs each and impairment of fixed

India Limited’s management. Our responsibility is to express

assets in terms of recommendations of Consultants (as relied

an opinion on these financial statements based on our audit.

upon by us) with particular reference to parent Company only

We conducted our audit in accordance with generally accepted

impact of which is not readily ascertainable, in our opinion

auditing standards in India. These standards require that we

the consolidated financial statements give a true and fair view

plan and perform the audit to obtain reasonable assurance

in conformity with the accounting principles generally accepted

whether the financial statements are prepared, in all material

in India :

aspects, in accordance with an identified financial reporting

i)

in the case of the consolidated Balance Sheet, of the

framework and are free of material misstatements. An audit

consolidated state of affair of Dabur India Ltd. and its

includes, examining on a test basis, evidence supporting the

subsidiaries for the year ended on that date; and

amounts and disclosures in the financial statements. An audit

ii)

also includes assessing the accounting principles used and

in the case of the consolidated Profit and Loss Account, of the consolidated results of operations of Dabur India

significant estimates made by management, as well as

Ltd. and its subsidiaries for the year ended on that date;

evaluating the overall financial statements. We believe that

and

our audit provides a reasonable basis for our opinion. iii) In the said Consolidated Financial Statements have been incorporated accounts of three foreign body corporates audited

in the case of the consolidated Cash Flow Statement, of the consolidated cash flow of Dabur India Ltd. and its subsidiaries for the year ended on that date.

by other auditors as per the law of the countries in which they are incorporated, and two body corporates incorporated in India; one of them being audited by other auditor. Report on the accounts of subsidiaries audited by other auditors as well as that of us pertaining to the accounts of subsidiary

For G. BASU & CO.

companies consolidated herein as received by us have been

Chartered Accountants

properly dealt with by us while preparing our report. Our report

80

herein is based on the consideration of audit reports on the

New Delhi

individual financial statements.

16th May, 2003

Dabur India Limited (Consolidated)

S. LAHIRI

Partner

balance sheet ○

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as at 31st march, 2003 ○

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Schedule

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As at 31st March, 2003 (Rs. in Lacs)

As at 31st March, 2002 (Rs. in Lacs)

Sources of Funds : Shareholders’ Funds : A) Share capital B) Reserves and surplus

A B

2,857.50 38,802.10

2,855.94 36,711.08

Minority Interest

B2

903.82

782.65

Loan Funds : A) Secured loans B) Unsecured loans

C D

8,300.90 13,125.20

10,074.26 20,294.97

63,989.52

70,718.90

F

40,549.66 14,846.85 25,702.81

54,336.20 17,260.72 37,075.48

Investments

G

10,176.02

2,674.94

Current assets, loans and advances : A) Inventories B) Sundry debtors C) Cash & bank balances D) Loans & advances

H 22,219.80 13,628.57 4,229.56 12,125.37

20,182.56 14,204.53 3,567.06 12,464.72

52,203.30

50,418.87

18,168.37 5,950.28

15,833.48 2,245.07

24,118.65

18,078.55

Total

Application of Funds : Fixed Assets : A) Gross block B) Less : Depreciation C) Net block

Less : Current liabilities and provisions A) Liabilities B) Provisions

EA

28,084.65

32,340.32

Deferred tax liabilities (Net)

Net current assets EB

(356.28)

(1,990.51)

Miscellaneous expenditure (To the extent not written off or adjusted)

IA

382.32

618.67

Notes to accounts

P 63,989.52

70,718.90

Total

As per our report of even date attached V. C. BURMAN Chairman

P. D. NARANG Director

New Delhi 16th May, 2003

ASHOK JAIN Company Secretary

P. N. VIJAY Director

For G. BASU & CO. Chartered Accountants S. LAHIRI Partner

Annu al Rep o r t 2002-03

81

profit and loss account for the year ended 31st march, 2003 ○

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For the year ended 31st March, 2003 (Rs. in Lacs)

For the year ended 31st March, 2002 (Rs. in Lacs)

Sales less returns Other income

137,085.75 718.43

128,096.25 1,198.54

Total income

137,804.18

129,294.79

57,756.71 7,350.21 3,778.83 10,382.58 42,065.81 2,612.61 290.68 2,931.03

56,296.17 6,062.47 3,358.36 9,389.81 39,191.53 3,331.66 566.71 2,867.93

127,168.46

121,064.64

10,635.72

8,230.15

4,564.09 5.64 — 250.00

2,028.86 96.12 -14.76 250.00

15,455.45

10,590.37

Provision for taxation – Current – Deferred

1,032.91 299.70

678.50 688.92

Provision for taxation for earlier year Interim dividend Interim dividend - minority Proposed Dividend - final Employees sharing of profit Corporate tax on proposed dividend Transferred to capital reserve Transferred to general reserve Transferred to legal reserve Minority interest

38.99 1,428.77 58.48 2,571.75 2.67 327.90 17.95 2,312.50 1.33 630.64

36.87 1,467.47 — — 3.80 145.60 248.72 3,114.40 — 508.37

Balance carried over to balance sheet

6,731.86

4,206.09

15,455.45

11,098.74

3.17 3.16

2.33 2.32

285,662,514 286,177,354

285,366,429 286,001,092

Schedule

Income :

J

Expenditure : Cost of materials Excise duty Manufacturing expenses Payments to and provisions for employees Selling and administrative expenses Financial expenses Miscellaneous expenditure written off Depreciation

K L M N O IB

Total expenditure Balance being net profit Balance brought forward Provision for taxation of earlier years written back Prior period expenses Transferred from debenture redemption reserve

Earning per share (in Rs.) Basic Diluted No. of shares Basic Diluted Notes to accounts

P

As per our report of even date attached

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V. C. BURMAN Chairman

P. D. NARANG Director

P. N. VIJAY Director

New Delhi 16th May, 2003

ASHOK JAIN Company Secretary

S. LAHIRI Partner

Dabur India Limited (Consolidated)

For G. BASU & CO. Chartered Accountants

schedules annexed to and forming part of the balance sheet as at 31st march, 2003 ○

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As at 31-3-2003 (Rs. in Lacs)

As at 31-3-2002 (Rs. in Lacs)

5,000.00

5,000.00

5,000.00

5,000.00

2,857.50 —

2,855.94 —

2,857.50

2,855.94

Capital reserve Share premium account Employees housing reserve / fund Capital redemption reserve General reserve (Net of debit against exchange fluctuation reserve Rs. 6.41; previous year Nil ) Legal reserve Debenture redemption reserve Investment allowance reserve Investment deposit reserve Profit and loss account Employee stock option scheme outstanding

1,547.15 5378.18 302.92 56.93 23,946.96

1,475.19 5,292.70 230.67 56.93 24,806.38

20.08 250.00 82.58 182.50 6,731.89 302.91

— 500.00 82.58 182.50 3,697.72 386.42

Total

38,802.10

36,711.08

161.57 75.00 36.62 630.64

161.57 75.00 37.71 508.37

903.82

782.65

Schedule A - Share Capital Authorised : 500000000

Equity shares of Re.1 each (previous year 500000000 equity shares of Re. 1 each)

Issued and Subscribed : 285749934

Equity shares of Re.1 each fully called up Minority interest (previous year - 285593520 equity shares of Re. 1 each)

Notes : 1. Equity shares issued & subscribed includes following issues for consideration other than cash : A) 4548000 equity shares of Rs.10 each fully paid up were issued pursuant to the scheme of amalgamation (without payment being received in cash). B) 18202080 equity shares of Rs.10 each fully paid up were issued as bonus shares by way of capitalisation of free reserves to shareholders in the ratio of 4 equity shares for every share held as on 1st December, 1993. 2. Pursuant to Section 94 of the Companies Act 1956, equity shares of Rs. 10 were sub-divided in equity shares of Re. 1/each on 15th December, 2000 by way of issue of 10 shares against each share formerly held by a shareholder. 3. 156414 Equity Shares of Re. 1 each were issued during the year 2002-03 under Employee Stock Option Scheme (previous year 378690). 4. 526118 equity shares of Re. 1 each are outstanding under Employee Stock Option Scheme as on 31st March, 2003 (previous year 644999 equity shares)

Schedule B

-

Reserves and Surplus

Schedule B2 - Minority Interest Share capital Share premium General reserve Profit and loss

Annu al Rep o r t 2002-03

83

schedules annexed to and forming part of the balance sheet as at 31st march, 2003 ○

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As at 31-3-2003 (Rs. in Lacs)

As at 31-3-2002 (Rs. in Lacs)

500.00

1,000.00

75.78

462.18

22.65 — 209.14 1,412.29 6,081.04

43.33 88.50 289.42 1,357.09 6,833.74

8,300.90

10,074.26

Schedule C - Secured Loans A.

B.

Debentures : 500000 - (Previous period 1500000)14.75% secured redeemable non-convertible debentures of Rs.100 each as fully paid up and redeemable at par in 1 equal annual (previous period 2) instalments on 23rd July, 2003 (previous period 23rd July, 2002, 2003) Secured by : A) For debentures amounting to Rs. 1,250 lacs (in terms of original issue) 1) By a mortgage by deposit of title deeds in respect of all the Company’s immovable properties situated at 22 , Site IV, Sahibabad, Distt.Ghaziabad. present and future. 2) A first charge by way of hypothecation in respect of all the Company’s movable plant & machinery spares and stores, tools and accessories including all other movables both present and future situated at 22, Site IV Sahibabad, Distt. Ghaziabad. Subject to : 1) Prior charges created and/or to be created in favour of Exim Bank & IDBI for their term loans, the Company’s bankers for co-acceptance of bills for purchase of plant & machinery . The mortgage and charges created as aforesaid shall rank pari passu with the charges created /to be created in favour of Industrial Finance Corporation of India Ltd. B) For debentures amounting to Rs. 250 lacs (in terms of original issue) 1) By a mortgage by deposit of title deeds in respect of all the Company’s immovable properties situated at Plot No. SP-C-162, MIA, Desula, Alwar, Rajasthan and Plot No. 7, NEPZ, Noida, Ghaziabad both present and future. 2) A first charge by way of hypothecation in respect of all the Company’s movable plant & machinery spares and stores, tools and accessories including all other movables both present and future situated at Plot No. SP-C-162, MIA, Desula, Alwar, Rajasthan and Plot No. 7, NEPZ, Noida, Ghaziabad. Subject to : 1) Prior charges created and/or to be created in favour of the Company’s bankers on the stock of raw materials, semi finished goods, consumables stores and book debts and movables for securing borrowings for working capital assistence in the ordinary course of business. Term Loans : Housing Development Finance Corporation Limited Secured by : Hypothecation of land & building, plant & machinery installed at the Company’s factory at Daburgram, Deoghar, Jharkhand. Hongkong & Shanghai Bank Ltd. Egypt Nepal SBI Bank Ltd. Deferred payment PICUP under trade tax loan scheme Short term loans - from banks Secured banks and institutional loans are covered by first charge on fixed assets, inventories, book debts - (present and future) and guarantee from HSBC, New Delhi

84

Dabur India Limited (Consolidated)

schedules annexed to and forming part of the balance sheet as at 31st march, 2003 ○

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As at 31-3-2003 (Rs. in Lacs)

As at 31-3-2002 (Rs. in Lacs)

48.13 3579.98 394.29 1,212.94 3,027.68 1,000.00 3,862.18 13,125.20

— 4253.75 456.78 1,064.15 3,092.45 7,500.00 3,927.83 20,294.97

7,247.53 867.96 2,895.95 6,475.22 447.53 120.96 33.60

5,468.08 1,154.09 2,695.47 5,629.81 658.83 59.41 68.52

53.27 19.69 6.66

57.72 35.71 5.84

18,168.37

15,833.48

2,571.75 327.90 217.24 236.60 2,596.79 5,950.28 24,118.65

— — 222.49 98.33 1,924.25 2,245.07 18,078.55

Schedule D - Unsecured Loans Deposits : Directors Companies Security deposit from dealers and others Term loan - from banks Book overdraft of current account with banks Commercial papers External commercial borrowings

Schedule EA - Current Liabilities and Provisions A.

B.

Current liabilities : Acceptance Amount due to SSI Units (goods) Creditors for goods Creditors for expenses and other liabilities Advances from customers Interest accrued but not due on loans Deposits - others Investor education and protection fund to be credited by : – Unpaid dividend – Unpaid matured public deposit – Interest accrued on public deposit Total A Provisions : For dividend (proposed) - final For corporate tax on proposed dividend - final For leave salary For housing, bonus, gratuity & other welfares For taxation Total B Total A+B

Schedule EB - Deferred Tax Liabilities (Net) Deferred tax liability : Depreciation Technical knowhow fees Strategic consultancy expenses Less : Deferred tax assets : VRS payment Others disallowance u/s 43 B

352.51 37.90 — 6.57 27.56

390.41

1,912.11 — 87.97 9.57 —

34.13 356.28

Schedule F - Fixed Assets

Freehold land Leasehold land Building, roads & culvert Plant & machinery Vehicles Furniture & off. equipment Computers Patents Live stock Capital work-in-progress

9.57 1,990.51 (Rs. in Lacs)

Gross block Name of Asset

2,000.08

As on Additions Adjustment 31.03.02 2002-2003 2002-2003

Depreciation As on 31.03.03

Net block

As on For the year Adjustment 31.03.02 2002-2003 2002-2003

As on 31.03.03

As on 31.03.03

As on 31.03.02

1,126.36 601.37 13,080.01 21,685.21 1,177.01 4,216.17 3,104.61 330.00 0.22 1,635.41

37.85 — 758.35 1,766.82 257.83 355.30 372.08 — — 2,600.19

— 62.64 2,585.87 5,582.64 494.50 1,031.21 1,164.14 — — 1,634.13

1,164.21 538.73 11,252.49 17,869.39 940.34 3,540.26 2,312.55 330.00 0.22 2,601.47

— 24.72 3,151.45 9,573.51 612.89 1,721.04 2,079.71 97.40 — —

— 4.32 500.22 1,575.56 156.56 344.26 302.95 47.16 — —

— 4.68 502.96 2,971.47 338.55 575.73 951.51 — — —

— 24.36 3,148.71 8,177.60 430.90 1,489.57 1,431.15 144.56 — —

1,164.21 514.37 8,103.78 9,691.79 509.44 2,050.69 881.40 185.44 0.22 2,601.47

1,126.36 576.65 9,928.56 12,111.70 564.11 2,495.13 1,024.89 232.60 0.22 1,635.41

46,956.37

6,148.42

12,555.13

40,549.66

17,260.72

2,931.03

5,344.90

14,846.85

25,702.81

29,695.63

Annu al Rep o r t 2002-03

85

schedules annexed to and forming part of the balance sheet as at 31st march, 2003 ○

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No. of shares/ units fully paid up

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As at 31-3-2003 (Rs. in Lacs)

As at 31-3-2002 (Rs. in Lacs)

200.00 200.00 200.00 65.00 30.22

200.00 200.00 200.00 65.00 —

105.00 1,350.00

105.00 1,350.00

7,652.02 4.99

— —

0.02 0.01 0.03 0.07 0.05 0.10 — 6.50

0.02 0.01 0.03 0.07 0.05 0.10 1.00 —

1.10

—

1.38 336.29

69.65 —

3.24 0.20 —

3.24 0.20 80.18

—

0.01

—

0.01

30.00

30.00

(10.18) —

(3.09) 373.46

10,176.02

2,674.94

7,343.39 2,783.99 208.71 2,880.28 9,003.43 22,219.80

5,663.82 2,115.95 — 2,406.57 9,996.22 20,182.56

519.56 137.97 657.53 137.97 519.56 13,109.01 13,628.57

878.83 — 878.83 — 878.83 13,325.70 14,204.53

Schedule G - Investments A. Quoted - Other than trade 1. Alliance 95 - dividend 490,918 2. ICICI - Prudential Balance Fund - dividend 1,879,699 3. Birla Balance - dividend 1,793,722 4. Unit Trust of India (Unit 64 Scheme) 464,286 5. GCFC Grindlays Cash Fund - Growth Option 268414.33 B. Unquoted I) Trade Investments 1. Sanat Products Ltd. 50,000 2. Dabon International Private Limited 13,500,000 II) Trade investments in subsidiary companies 1. Dabur Oncology PLC. 111,400,000 2. Dabur Pharma Ltd. (subscribed during the year) 499,400 III) Other than trade investments 1. Commerce Centre Co-op. Hsg. Soc. Ltd. 15 2. Capexil (Agencies) Limited 3 3. Dabur Employees Consumers Co-op. Stores Ltd. 250 4. Dabur Employees Co-op. Credit Society Ltd. 650 5. Co-operative Stores Limited, Super Bazar 500 6. Vertex Broadcasting Private Limited 1,000 7. Himal Laboratories Pvt. Ltd. (sold during the year) 10,000 8. Green Valley Products Pvt. Ltd. 65,000 (purchased during the year) 9. Consortium Consumercare Pvt. Ltd. (subscribed during the year) 11,000 10. 5% Special Nepal Govt Bonds 2063 (bonds sold during the year) 3 11. 5% Special Nepal Govt Bonds 2064 5 (5 bonds purchased during the year) 12. 12.50% Maharashtra State Dev. Loan 2004 3 13. VIII Series National Saving Certificates 1 14. Vertex Broadcasting Pvt. Ltd.-preference shares 1,187,500 (sold during the year) 15. Vertex Bhopal Broadcasting P. Ltd.-preference shares 100 (sold during the year) 16. Vertex Deccan Broadcasting P. Ltd.-preference shares 100 (sold during the year) 17. Dabur Securities Pvt. Ltd. 300,020 (10 equity shares purchased during the year) Less : Provision for diminution C. Share application money pending allotment Total

Schedule H - Current Assets, Loans and Advances A.

Current assets : Stock-in-trade – Raw materials – Packing materials, stores and spares – Recoverable value from impaired fixed assets – Stock in process – Finished goods Sundry debtors (unsecured) : – Debts outstanding for a period exceeding six months : Considered good Considered doubtful Less : Provision for doubtful debts –

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Other debts (considered good)

Dabur India Limited (Consolidated)

schedules annexed to and forming part of the balance sheet as at 31st march, 2003 ○

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Schedule H - Current Assets, Loans & Advances

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B.

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As at 31-3-2002 (Rs. in Lacs)

34.00

34.17

3,690.69

2,107.77

501.05

1,349.55

0.95

0.95

(Contd.)

•

–

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As at 31-3-2003 (Rs. in Lacs)

Cash and bank balances : – Cash in hand at head office and other offices – Balance with banks : • In current accounts (includes Rs. 53.27 in unpaid dividend account; previous year Rs. 57.72)

– –

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In fixed deposit accounts : (Pledged with govt. authorities Rs. 10; previous year Rs. 10) Balance with non-scheduled banks Postal savings bank accounts (deposited with excise authority) Remittance-in-transit & cheques-in-hand

Loans and advances (unsecured, considered good, unless otherwise stated) Loans & advances to subsidiaries Loans & advances to others (including secured advances Rs. Nil; previous year Rs. 199.47) Security deposit with various authorities (including deposit with govt. authorities Rs. 1,107.49; previous year Rs. 1,048.79) Advance payment of tax Advances to suppliers Advances to employees Balance with excise authorities Other advances

Total (A+B)

2.86

74.62

40,077.93

37,954.15

880.04

601.06

4,585.88

3,908.25

2,469.90 992.33 732.20 666.83 1,798.17

2,240.74 2,105.34 1,265.81 822.11 1,521.41

12,125.37

12,464.72

52,203.30

50,418.87

Schedule IA - Miscellaneous Expenditure (to the extent not written off or adjusted) Share issue expenses Less : Amortised during the year Opening balance Technical knowhow fees paid Less : Amortised during the year Strategic management consultancy expenses Less : Amortised during the year

37.81 37.81

—

75.64 37.83

37.81

8.42 112.50 120.92 12.82

108.11

14.33 — 14.33 5.91

8.42

92.86 92.86

—

339.26 246.40

92.86

Deferred employee compensation under ESOP : Opening balance Addition during the year Less : Cancelled during the year

217.26 96.60 94.63

Less : Amortised during the year

219.23 82.32

136.91

505.04 287.78

217.26

Deferred Advertisement & publicity Less : Amortised during the year

229.31 114.65

114.66

343.96 114.65

229.31

33.01 10.37

22.64

40.89 7.88

Preliminary expenses Less : Amortised during the year

321.03 184.01 —

382.32

33.01 618.67

Annu al Rep o r t 2002-03

87

schedules annexed to and forming part of the profit and loss account for the year ended 31st march, 2003 ○

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For the year ended 31-3-2003 (Rs. in Lacs)

For the year ended 31-3-2002 (Rs. in Lacs)

125,439.33 11,646.42 137,085.75

116,621.83 11,474.42 128,096.25

102.12 19.44

147.55 88.50

172.61 2.75 — 0.38 106.20 279.88 46.31

150.79 17.17 — — 114.97 376.37 303.19

(11.26) 718.43

— 1,198.54

Schedule J - Sales and Other Income A.

B.

Sales : Domestic sales less returns Export sales Other income : Export subsidy Rent realised (Tax deducted at source Rs.1.87; previous year Rs. 12.97) Sale of scrap Other dividend – (other than trade investment) – Trade investment – Other investment Royalty received Miscellaneous receipts Profit on sale of fixed assets (Net of loss of Rs. 16.74; previous year Rs. 18.34) (Including capital profit of Rs. 17.95; previous year Rs. 248.72) Profit on sale of investments

Schedule K - Cost of Materials Raw Materials consumed : i) Opening stock ii) Add : Purchases iii)

Less : Closing stock

Packing materials consumed : i) Opening stock ii) Add : Purchases iii) Less : Closing stock Purchase of finished products Adjustment of stocks-in-process and finished goods Opening stock : Stock-in-process Finished products Closing stock : Stock-in-process Finished products Increase(-)/Decrease in stock-in-process and finished goods

5,550.93 24,439.88 29,990.81 7,343.39 1,473.55 10,653.96 12,127.51 2,250.95

22,647.42

9,876.56 24,725.65

5,383.74 24,090.13 29,473.87 5,550.93 1,444.38 9,531.89 10,976.27 1,473.55

2,406.57 9,984.28 12,390.85

2,396.72 8,153.45 10,550.17

2,880.30 9,003.47 11,883.77

2,406.57 9,984.28 12,390.85

23,922.94

9,502.72 24,711.19

507.08

(1,840.68)

57,756.71

56,296.17

2,394.80 493.87

2,239.09 418.69

142.44 246.49 332.21 169.02 3,778.83

181.62 222.02 220.68 76.26 3,358.36

Schedule L - Manufacturing and Operating Expenses Power and fuel Stores & spares consumed Repairs & maintenance : – Building – Plant & machinery – Others Processing charges

88

Dabur India Limited (Consolidated)

schedules annexed to and forming part of the profit and loss account for the year ended 31st march, 2003 ○

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For the year ended 31-3-2003 (Rs. in Lacs)

For the year ended 31-3-2002 (Rs. in Lacs)

6,205.55 1,149.58 2,581.40 446.05

5,427.40 883.57 2,366.23 712.61

10,382.58

9,389.81

585.75 153.94 229.40 8,597.35 3,626.74 22.72 2,584.28 16,980.40 2,676.26 677.08 448.18 117.29 2,961.43 1.18 24.90 183.07 1,750.00 445.84 —

560.22 106.46 237.44 8,057.50 2,872.73 68.26 2,774.13 16,350.82 2,510.30 588.05 546.52 106.31 2,533.66 1.76 24.19 65.69 1,750.00 32.85 4.64

42,065.82

39,191.53

Schedule M - Payments to & Provisions for Employees Salaries, wages and bonus Contribution to provident and other funds Workmen and staff welfare Directors’ remuneration (Including perquisites Rs. 155.24; previous year Rs. 364.12)

Schedule N - Selling and Administrative Expenses Rent Rates and taxes Insurance Sales tax Freight and forwarding charges Cartage and coolie Commission, discount and rebate Advertising and publicity Travel & conveyance Legal & professional Telephone, fax expenses Security expenses General expenses Directors’ fees Auditors’ remuneration Donation Contribution for scientific research expenses Bad debts Loss on sale of investments

Schedule O - Financial Expenses Interest paid on : – –

Fixed period loan Others (Net of int. received Rs. 159.64; previous year Rs. 276.41)

1,127.45 976.03

Bank charges

2,103.48

1,751.96 1,015.92

2,767.88

509.13

563.78

2,612.61

3,331.66

37.81 12.82 92.86

37.83 5.91 246.40

Schedule IB - Miscellaneous Expenditure Written Off Share issue expenses Technical knowhow fees paid Strategic management consultancy expenses Deferred employee compensation under ESOP Less : Transferred to Directors’ remuneration

82.32 60.15

22.17

287.78 133.74

154.04

Deferred advertisement & publicity Preliminary expenses

114.65 10.37

114.65 7.88

Total

290.68

566.71

Annu al Rep o r t 2002-03

89

schedules annexed to and forming part of the accounts for the year ended 31st march, 2003 ○

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Schedule P - Significant Accounting Policies and Notes to the Consolidated Financial Statements (Amount Rs. Lacs)

A.

Accounting Policies : Significant accounting policies are summarized below :

1.

Principles of Consolidation : The Consolidated Financial Statement relates to Dabur India Ltd. (the parent company) and Dabur Foods Ltd., Dabur Finance Ltd. (both wholly owned subsidiary companies incorporated in India), Dabur Overseas Ltd. (a wholly owned subsidiary company incorporated in British Virgin Islands), Dabur Nepal Private Ltd. (a subsidiary body corporate incorporated in Nepal, the extent of holding of parent company being 79.96%), and Dabur Egypt Ltd. (a subsidiary body corporate incorporated in Egypt, 76% of stake wherein is held by Dabur Overseas Ltd.; one of the wholly owned foreign subsidiaries of parent company). The consolidated financial statements have been prepared on the basis of AS-21, issued by ICAI read with the following basic assumptions : i.

The financial statements of the parent company and its subsidiary companies have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions and resulting in unrealized profits or losses. Investments of parent company in subsidiaries are eliminated against respective proportionate stake of parent company therein on the respective dates when such investments were made by way of crediting the difference of the two in terms of aggregate in capital reserve except for Dabur Nepal Private Ltd. where the same is adjusted against share premium account. In respect of foreign subsidiaries, rise in the value of stake of parent company in terms of reported currency upto the date of commercial production (i.e. the date, their assets were due to capitalization) on account of exchange fluctuation has been credited to capital reserve. Subsequent generation of reserve other than that of the nature of capital reserve including gain/ loss arising on account of translating the transactions of the year, year-end assets and liabilities of the foreign subsidiaries for the purpose of consolidating with parent company’s assets at exchange rates ruling on year-end-date has been recognized as reserve specifically earmarked for the purpose.

ii.

The consolidated financial statements are prepared by adopting uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the parent company’s separate financial statements unless stated otherwise. Recognition of income, classification of assets, provisioning thereon pertaining to accounts of Dabur Finance Ltd. remain as per Income Recognition and Assets Classification Norms issued by Reserve Bank of India which are not necessarily consistent with the accounting policies of the parent company.

iii.

Minority interest, where lying, in the net income of consolidated subsidiaries have been adjusted against the income of the group so as to arrive at net income attributable to the parent company. Minority interest consisting of equity attributable to them on the date such investments were made by the parent company and movement in their equity since the date of parent subsidiary relationship has been disclosed in the consolidated financial statement separately from liability and equity of shareholders of parent company.

iv.

Current assets/ liabilities of overseas subsidiaries have been translated in reporting currency in terms of exchange rates prevailing on year-end date. Income and expenses of overseas subsidiaries have been translated at average rate. Fixed assets of the overseas subsidiaries have been accounted for in terms of the exchange rate prevailing at the point of commencement of production of relevant subsidiaries pertaining to assets appearing since that point of time and at purchase price (including cost of installation) for remaining fixed assets.

v. 2.

Impact of exchange fluctuation, whether revenue or capital in nature appearing in the accounts of the foreign subsidiaries are directly charged to revenue in Consolidated Financial Statement.

Accounting Convention : The accounts have been prepared in accordance with the historical cost convention modified by revaluation and impairment of certain fixed assets. a.

Fixed Assets and Depreciation : • • •

90

Fixed assets are stated at cost (and at recoverable value for impaired assets of Dabur India Ltd. only as per AS 28 issued by ICAI), except for revalued assets. Cost includes inward freight, duties, and taxes and expenses incidental to acquisition and installation. In respect of revalued assets the difference between the written down value of the assets as on the date of revaluation and the revalued amount have been transferred to Capital Reserve.

Dabur India Limited (Consolidated)

schedules annexed to and forming part of the accounts for the year ended 31st march, 2003 ○

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In respect of assets impaired as on 31.03.2003, difference between written down value and impaired value of corresponding assets has been adjusted against opening balance of revenue reserve. However, further impairment losses will be provided against revenue of the year. As regards fixed assets acquired out of loan taken in foreign currencies, loss or gain on such loans at the year-end is adjusted to the value of such fixed assets. Interest on the loan utilized for acquisition of Fixed Assets are capitalized for the new projects up to the date of commencement of commercial production of respective projects. In respect of parent company and Dabur Foods Limited, depreciation on fixed assets has been provided on written down value method rates specified in Schedule XIV of the Companies Act, except for Baddi, Katni, Kalyani, 5/1 Sahibabad unit and Corporate Office of parent company, Dabur Foods Limited, Dabur Finance Ltd. and Dabur Egypt Ltd. in Sahibabad, where depreciation have been provided on straight line method at the rates specified in aforesaid Schedule. The parent company has identified impairable assets at the year end in terms of paras - 5 to 13 of AS-28 issued by ICAI and arrived at impairment loss therein being the difference between the book value and recoverable value of relevant assets. Impairment loss, so arrived at, has been adjusted against opening general reserve as per transitional provision laid down in para –124 of AS-28. Depreciation on differential amounts of fixed assets arising out of exchange loss or gain on foreign currency loan are adjusted over the remaining life of the concerned fixed assets. On leased assets, depreciation has been provided on the amount equal to annual lease charges as per method recommended by ICAI under which cost of the leased assets (net of Margin, if any) is depreciated over primary period of lease applying interest rate implicit in the lease to the outstanding investment in lease to calculate finance earnings for the period and the difference between the lease rental and finance earnings is charged as depreciation.

Investments : Investments being long term in nature (except for Dabon International Ltd, Dabur Oncology Plc and Dabur Pharma Ltd. which are current in nature) are held at cost. Provision will be made as and when deemed necessary under AS-13 issued by ICAI. Investment of Dabur Finance Ltd. in unquoted equity shares held as current investments and are carried at cost net of provision for diminution in the value of current investment.

c.

Deferred Entitlement on LTC : In terms of the opinion of the Expert Advisory Committee of the ICAI, the parent company has provided liability accruing on account of deferred entitlement towards LTC in the period in which the employees concerned render their services.

d.

Inventories : Stocks are valued at lower of cost or net realizable value. Basis of determination of cost remain as follows : • • • •

e.

Raw materials, Packing materials, stores & Spares Work-in-process Finished goods Securities

: : : :

On FIFO Basis At cost of input plus overhead upto the stage of completion. At cost of input plus appropriate Overhead. At cost

Research and Development Expenses : Contributions towards scientific research expenses are charged to the Profit & Loss Account in the year in which the contribution is made.

f.

Retirement Benefits : Liabilities in respect of retirement benefits to employees are provided for in the books of Dabur India Ltd. and Dabur Foods Ltd. for as follows : • • • •

g.

Leave salary of employees of the company on the basis of actuarial valuation. Gratuity liability on the basis of payment advice from Life Insurance Corporation of India from whom the company’s gratuity trust has taken the Group Gratuity Insurance Policy. Liability for superannuation fund on the basis of the premium paid to Life Insurance Corporation of India in respect of employees covered under the Superannuation Fund Policy. For other subsidiary companies, these are provided for on the basis of management estimate.

Recognition of Income and Expenses : For all companies except Dabur Finance Ltd. : • • • •

Sales and purchases are accounted for on the basis of passing of title to the goods. Sales comprise of sale price of goods including excise duty and sales tax but exclude discount, except for Dabur Nepal Pvt. Ltd. where sales realization is considered net of VAT. Exports Sales are accounted for on the basis of date of bill of lading. All items of income and expenses have been provided on accrual basis.

Annu al Rep o r t 2002-03

91

schedules annexed to and forming part of the accounts for the year ended 31st march, 2003 ○

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For Dabur Finance Ltd : • Lease rentals are recognized as Income when the same become receivable in terms of the lease agreements except where payments of lease rentals have been rescheduled, the same are recognized as income to the extent of receipts. • Income from Hire Purchase transactions are recognized by applying the implicit rate in-built on diminishing balance transactions except where payments of Hire Purchase rentals have been rescheduled, the same are recognized as Income to the extent of receipts. • Bad Debts are written off and provision in respect of performing and other class of assets is made based on period review of receivable and guidelines of RBI over and above such provisions bad debts are being written off in such cases as determined by the company. h.

Deferred Taxation : The liability of company is estimated considering the provision of the Income Tax, 1961. Deferred tax is recognized subject to the consideration of prudence, on time differences being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or subsequent periods, has been considered for Dabur India Ltd. only. For Dabur Egypt Limited, Dabur Nepal Private Ltd. & Dabur Overseas Limited, the same is not mandatorily applicable. In the case of Dabur Foods Ltd. and Dabur Finance Ltd., considering carry forward loss in the books of both the companies and restriction imposed to recognize deferred tax asset thereon under para 17 of AS 22 issued by ICAI, no deferred tax has been considered.

i.

Contingent Liabilities : Disputed liabilities and claims against the company including claims raised by statutory authorities, pending in appeal, are treated among contingent liabilities and are not provided for in the accounts but are disclosed by way of note in Notes to Accounts.

j.

Foreign Currency Translation : In respect of foreign branches/offices, revenue items have been converted at average of month end exchange rates during the year. Fixed assets have been converted at the rates prevailing on dates of purchase. Assets & Liabilities other than fixed assets are converted at the year-end exchange rate. Exchange gain or loss arising out of above is charged to Profit & Loss Account. Receivables/payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end date and the resultant gain or loss, is charged to the Profit & Loss Account. As regards payables in respect of fixed assets, refer to item (b) above. Exchange Loss / Gain arising out of transactions of revenue nature are separately disclosed in notes on accounts.

k.

Employee Stock Option Scheme (ESOS) : Aggregate of quantum of option granted under the scheme in monetary term has been shown as Employees Stock Option Scheme outstanding in Reserve and Surplus head of the Balance Sheet by way of debiting deferred Employees Compensation under ESOP as per guidelines to the effect issued by SEBI.

l.

Miscellaneous Expenditure : • • • • •

Share issue expenses are being amortized over a period of ten years. Technical know-how fees paid to Technical Collaborators are being amortised over a period of six years. Strategic Management Consultancy Expenses are being amortized over a period of five years. Deferred Employees Compensation under ESOP are being amortized on straight line basis over vesting period. Deferred advertisement, publicity and sales promotion expenses are being amortized over a period of five years in Dabur Foods Ltd., one of the subsidiaries.

B. Notes to Account : 1.

Building constructed on leasehold land included in the value of building shown in Fixed Assets Schedule :

Cost/Revalued Written Down Values 2.

i.

As at 31st March, 2002

7,568.20 5,786.25

7,180.35 5,281.11

The parent company has impaired its assets in terms of AS 28 issued by ICAI. The entire exercise of impairment of assets was entrusted to two firms – one being a firm of Chartered Accountants and the other a firm of Chartered Engineers who jointly conducted the work. a)

92

As at 31st March, 2003

Impairment Loss arrived at during the year for the first time working upto Rs. 4,894.69 has been adjusted against opening balance of general reserve (as per para –124 of AS 28) which led to reduction of reserve and surplus, net worth and fixed assets by like amount.

Dabur India Limited (Consolidated)

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Impairment loss in terms of different categories of assets remain as follows : Building, Roads & Culverts Plant & Machinery Vehicles Furniture & Office Equipment

1,985.29 2,270.89 7.62 630.88 4,894.69

ii. 3.

c)

Impairment loss has been recognized on the recommendation of technical and financial consultants who conducted required survey of assets.

d)

Impairment loss provided against opening general reserve led to write back of deferred tax of Rs. 1,800.75 provided earlier against general reserve thereby adding to reserve and surplus and reducing deferred tax liabilities by like amount.

Assets of subsidiaries are pending impairment which will be taken up in future.

Loans and Advances include Rs. 48.64 (previous year Rs. 46.67) paid by the Company to Excise authorities on behalf of Sharda Boiron Laboratories Limited, now known as SBL Limited, in respect of excise duty demand of Rs. 68.13 raised by the District Excise Officer, Ghaziabad, against the Company and Sharda Boiron Laboratories Limited. The Hon’ble Supreme Court of India had concurred with the order of the District Excise Officer, Ghaziabad. The Company had filed the review petition before Division Bench of the Hon’ble Supreme Court of India, which was also decided against the Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the Company and as per the terms and conditions of the contract executed with them, the recovery proceedings have been initiated by the Company against Sharda Boiron Laboratories Limited for Rs. 48.64 by invoking the arbitration clause. The matter is pending before Hon’ble High Court of Delhi for the appointment of an arbitrator. The balance amount of Rs. 21.46, along with interest demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities. During the year 1991-92 the Company had received a refund of Rs. 5.95, pursuant to the decision of Hon’ble Supreme Court in this regard. Necessary adjustment in respect of recovery/refund will be made as per the arbitration proceedings.

4.

The Company has provided Rs. 55.37 (previous period Rs. Nil) as liability accruing on account of deferred entitlement towards LTC. (Refer Para 2 (c) of Accounting Policies).

5.

a) b)

6.

i) ii) iii) iv)

7.

Rs.nil (Previous year Rs.20.26) has been credited against capital reserve on account of appreciation in carrying cost of investment in foreign subsidiaries vis-à-vis cost of the same due to exchange fluctuation between the date of investment, and the date of commencement of commercial production on the part of these subsidiaries. Rs. Nil (Previous year Rs. 300) adjusted from share premium account on account of elimination of investment in Dabur Nepal Pvt.Limited against proportionate of stake of parent company at the time of establishment of parent- subsidiary relationship. Rs.Nil (Previous year Rs.174.82 and Rs.2.58 ) debited and credited against general reserve on account of depreciation charge and technical know-how of Dabur Nepal Pvt. Limited in terms of parent company’s accounting policy. Consequent upon exclusion of Dabur Oncology Plc.UK (refer note No.5(b) above) for the purpose of consolidation, capital reserve during the year is increased by Rs.54.03 (previous year – Rs. Nil).

Contingent Liabilities: i. ii. iii. iv. v. vi. vii. viii. ix. x. xi

8.

Investment (Rs.135) in Dabon International Private Limited is held for disposal in near future. As such the same has not been accounted for as authorized under para –7(a) of AS-23 issued by ICAI. Two subsidiary companies Dabur Oncology Plc. UK and Dabur Pharma Ltd. have been excluded from the Consolidated Financial Statement as authorized under para 11 (a) of AS 21 issued by ICAI as the investment in these entities are poised for transfer to a new entity in near future pursuant to the demerger of the Company between FMCG and Pharmaceuticals Business.

Claims against the Company not acknowledged as debts: a) In respect of civil suits filed against the Company Rs. 168.42 (previous year Rs. 160.42). b) In respect of claims by employees Rs. 9.48 (previous year Rs. 4.87). In respect of letters of credit Rs. 2,125.88 (previous year Rs. 2,404.12).. In respect of Bank Guarantees executed Rs.700.73 (previous year Rs. 259.24).. In respect of Sales Tax under appeal Rs. 434.79 (previous year Rs. 295.31). In respect of excise duty disputes pending with various judicial authorities Rs.2,941.63. (previous year Rs. 3,889.77). In respect of Corporate Guarantees given by the Company Rs. 7,138.88 (previous year Rs. 5,377.25). In respect of Income tax under appeal Rs. 112.68 (previous year Rs 223.39). Estimated Amount of contract remaining to be executed on Capital Account Rs.486.80 net of Advance (previous year Rs. 1,145.40). In respect of Bills Discounted by the Company Rs 179.80 (previous year Rs. 5,377.25). In respect of Dividend Tax Rs. 49.16 (previous year Rs. 49.16). In respect of disputed Customs Duty Rs. Nil (previous year Rs. 49.16).

The Other Notes to Account containing inter-alia explanatory material except for quantitative particular pertaining to foreign subsidiaries, disclosure of which is not required under respective statute, are disclosed with the accounts of different companies under consolidation.

Annu al Rep o r t 2002-03

93

schedules annexed to and forming part of the accounts for the year ended 31st march, 2003 ○

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Related Party Disclosures Related party disclosures as required under AS 18 on “Related Party Disclosures” issued by the Institute of Chartered Accountants of India are given below : (a) Name of related party and nature of related party (iii) Associate entities over which Key Management relationship where control exists : Personnel are able to exercise significant influence 1. Malhotra Trading Co. Nil 2. Jetways Travels Pvt. Ltd. (b) Name of related party and nature of related party 3. Gyan Enterprises Pvt. Ltd. relationship other than those referred to in (a) above 4. Puran Associates Pvt. Ltd. 5. Acee Enterprises in transaction with the Company : 6. Chowdry Associates (i) Joint Ventures/Joint Ventures Partners 7. Miracle Commercial Enterprises Pvt. Ltd. 8. Wakarusa Laboratories Pvt. Ltd. Dabon International Pvt. Ltd. (iv) An enterprise owned by any Directors of Dabur India Ltd., Mr. Rukma Rana, joint venture partner in (even though he may not be Director in that enterprise) Dabur Nepal Pvt. Ltd. 1. VIC Enterprises Pvt. Ltd. Redrock Ltd., joint venture partner in 2. Ratna Commercial Enterprises Pvt. Ltd. Dabur Egypt Ltd. (v) An enterprise owned by major shareholders (ii) Key Management Relatives of Key (major shareholders of Dabur India Limited are) Personnel (Whole-time Management 1. Milky Investment & Trading Co . 2. Sanat Products Ltd. Directors) Personnel 3. Sahiwal Investment & Trading Co. 1. Pradip Burman Chetan Burman 4. Trojan Developers Private Ltd. R.C. Burman 5. Western Enterprises 6. Eastern Enterprises 2. Dr. Anand Burman A.C. Burman (vi) An enterprise over which Company is able to exercise 3. Amit Burman Asha Burman significant influence : 4. P. D. Narang — 1. Dabur Pharmaceuticals Limited 5. Sunil Duggal — 2. Dabur Ayurvedic Speciality Limited 3. Williamsons India Private Limited Transaction with Related Parties During the Year 2002-03

Purchase of goods Sale of goods Services received Repayment of deposits Loans received Interest paid on loans received Loan repayment (instal. recd.) Interest recd on loans given Remuneration/pension/exgratia Rent paid Security deposit recd. Royalty received

Associates

Key Management Personnel

Relatives of Key Management Personnel

Total

Outstanding As on 31.03.03

1,701.38 (1,712.21) 71.48 (1,745.22) 2,758.96 (3,189.19) — (—) 3,779.63 (8,117.00) 368.33 (260.14) 50.00 (—) 51.04 (—) — (—) 22.70 (—) 1.44 (—) 106.21 (114.97)

— (—) — (—) — (—) — (54.90) — (372.80) — (49.11) 0.66 (—) 0.48 (—) 457.84 (702.97) — (—) — (—) — (—)

— (—) — (—) — (—) — (255.89) — (53.34) — (18.56) — (—) — (—) 334.88 (132.62) — (—) — (—) — (—)

1,701.38 (1,712.21) 71.48 (1,745.22) 2,758.96 (3,189.19) — (310.79) 3,779.63 (8,543.14) 363.22 (327.81) 50.66 (—) 51.52 (—) 792.72 (835.59) 22.70 (—) 1.44 (—) 106.21 (114.97)

42.21 (514.05) 3.88 (326.80) 268.19 (2,304.29) — (—) 2,289.00 (4,107.27) — (—) 353.16 (—) — (—) — (—) 12.56 (—) — (—) 90.65 (114.97)

Figures in brackets are for previous year.

94

Dabur India Limited (Consolidated)

schedules annexed to and forming part of the accounts for the year ended 31st march, 2003 ○

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Information about Primary Business Segments (All amounts in Rs. Lacs) FMCG

Pharmaceuticals

Foods

Eliminations

Current Year

Previous Year

Current Year

Previous Year

Current Year

Previous Year

Current Year

External sales Inter-segment sales

1,09,532.1

99,398.1

18,379.5

16,290.1

7,607.3

5,653.2

—

—

—

—

—

—

Total revenue

1,09,532.1

99,398.1

18,379.5

16,290.1

7,607.3

5,653.2

—

Segment result 10,244.6 Unallocated corporate expenses —

8,402.4

2,069.8

1,965.8

220.0

181.7

—

—

—

—

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Operating profit

10,244.6

8,402.4

2,069.8

1,965.8

220.0

181.7

Interest expense (1,718.1) (Net of Interest Income) — Income Tax (Current + Deferred)

(2,205.2)

(515.7)

(724.0)

(179.7)

Others

Total Consolidated

Previous Year

Current Year

Previous Year

Current Year

Previous Year

—

—

1,566.9

—

—

—

—

—

1,566.9

6,754.8

—

—

708.7

916.1

13,243.2

—

—

—

—

—

—

—

—

708.7

916.1

13,243.2

11,466.0

(169.9)

—

—

(199.2)

(232.6)

(2,612.7)

(3,331.7)

REVENUE : 6,754.8 1,37,085.8 1,28,096.3

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13,7085.8 1,28,096.3

RESULT :

Profit from ordinary activities Extraordinary loss : uninsured earthquake damage to factory

8,526.6

11,466.0

—

—

—

—

—

—

—

—

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(1,327.3)

(1,271.2)

6,197.3

1,554.1

1,241.8

40.3

11.7

—

—

509.5

683.5

9,303.3

6,863.2

—

—

—

—

—

—

—

—

—

—

—

—

8,526.6

6,197.3

1,554.1

1,241.8

40.3

11.7

—

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509.5

683.5

9,303.3

6,863.2

Segment assets Unallocated corporate assets

52,543.2

59,750.5

22,711.9

29,573.5

4,682.1

4,317.3

(3,375.4) (13,579.4)

9,132.3

7,866.1

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—

—

—

—

—

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85,694.1 2,469.9

87,928.0 2240.8

Total assets

52,543.2

7,866.1

88,164.0

90,168.7

Net profit OTHER INFORMATION :

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59,750.5

22,711.9

29,573.5

4,682.1

4,317.3

Segment liabilities (29,070.9) (28,810.9) — — Unallocated corporate liabilities

(4,120.5)

(9,326.8)

(5,051.4)

(3,017.2)

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—

—

—

—

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(9,780.1) (43,386.3) (48,514.0) — (2,596.8) (1,924.2)

Total liabilities

(4,120.5)

(9,326.8)

(5,051.4)

(3,017.2)

351.6

2,421.0

(5,495.0)

(9,780.1) (45,983.0) (50,438.3)

(29,070.9) (28,810.9)

(3,375.4) (13,579.4) 351.6

2,421.0

9,132.3 (5,495.0)

Capital expenditure

3,397.8

5,264.0

1,095.2

558.2

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—

—

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21.3

32.4

4,514.3

5,854.7

Depreciation Non-cash expenses other than depreciation

2,114.7

1,994.5

430.5

300.0

174.1

160.5

6.9

55.0

204.7

357.9

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—

—

—

—

—

—

—

—

—

2,931.0 382.3

2,867.9 618.7

Secondary Segment As the Company also exports, the secondary segment for the Company is based on the location of customers. Out of the total sales of Rs.1,37,085.80 lacs, the export sales is of Rs. 11,646.42 lacs and domestic sale is Rs. 1,25,439.34 lacs.

11. 12. 13.

Note : 1. Segment results of current year are net of Rs. 3,785.75 lacs and Rs. 1,108.94 lacs for FMCG and Pharmaceuticals segments being impairment loss of respective segments provided during the year. 2. Identification of primary segment has been modified during the year by way of assuming other segments as integral part of FMCG, as the same virtually belongs to FMCG segment in functional sphere. Information relating to previous year also have been re-arranged accordingly. Recoverable value from impaired fixed assets in parent company amounting to Rs. 208.71 (previous year Nil) have been shown under the head of inventories forming part of current assets loans and advances in Schedule H. Revenue implication of exchange fluctuation works out to Rs.155.55 (previous period gain of Rs.139.29)- net of debit, being charged to Profit & Loss Account. Grouping and heads of accounts of the subsidiaries have been rearranged in terms of presentation of those of parent company as and when necessary. Considering exclusion of Dabur Oncology Plc. UK from the purview of consolidation unlike previous year, figures of previous year are not comparable with those of current year. As per our report of even date attached

V. C. BURMAN Chairman

P. D. NARANG Director

New Delhi 16th May, 2003

ASHOK JAIN Company Secretary

P. N. VIJAY Director

For G. BASU & CO. Chartered Accountants S. LAHIRI Partner

Annu al Rep o r t 2002-03

95

statement of cash flow (pursuant to AS-3 issued by ICAI) ○

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Particulars A.

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2002-2003 (Rs. in Lacs)

2001-2002 (Rs. in Lacs)

10,635.72

8,230.15

Cash flow from operating activities Net profit before tax and extraordinary items Add : Depreciation Miscellaneous exp. written off Miscellaneous exp. written off (included in Director Remuneration) Interest

Less : Dividend received Profit on sale of investment Profit on sale of assets

2,931.03 290.68 60.15 2,612.61

2,867.93 566.71 133.74 3,331.66 5,894.48

6,900.04

16,530.19

15,130.19

3.13 (11.26) 46.31

Operating profit before working capital changes

17.17 — 303.19 38.17

320.36

16,492.01

14,809.83

Working capital changes : Increase/(Decrease) in inventories Increase/(Decrease) in debtors Decrease/(Increase) in trade payables Increase/(Decrease) in working capital

1,828.53 (364.65) (2,867.11) (1,403.23)

Cash generated from operating activities Interest paid Tax paid Income tax refund Corporate tax on dividend

16,597.88 3,342.25 989.46 (176.30) 455.49 4,610.90 11,986.97

(4,514.29) 7,856.79 (20,043.86) 12,554.04 3.13

(7,442.32) 762.06 (355.65) 1.21 17.17

4,144.20)

(7,017.53)

Proceeds from share capital & premium Repayment(-)/proceeds (+) of long term secured liabilities Repayment(-)/proceeds(+) from short term loans Proceeds from deposits Repayment(-)/proceeds(+) from other unsecured loans Payment of other advances Payment of dividend

1.56 (1,020.67) (752.69) (738.26) (6,481.63) 568.51 (1,491.70)

3.81 (2,081.33) 1,169.33 (1,424.57) 2,065.03 235.40 (4,313.84)

Cash used(-)/+(generated) in financing activities (C)

(9,914.89)

(4,346.17)

662.49

623.27

Cash and cash equivalents opening balance (1st April, 2002)

3,567.06

2,943.79

Cash and cash equivalents closing balance (31st March, 2003)

4,229.55

3,567.06

Cash flow from investing activities

Cash used(-)/(+) generated for investing activities (B) Cash flow from financing activities

Net increase(+)/decrease (-) in cash and cash equivalents (A+B+C)

96

17,895.25 2,551.07 884.10 (261.50) — 3,173.67

Purchase of fixed assets Sale of fixed assets Purchases of investment including investment in subsidiaries Sale of investments Dividend received

C.

(1,788.04)

14,721.57

Cash used(-)/(+) generated for operating activities (A) B.

2,315.07 (1,493.75) (2,609.36)

Dabur India Limited (Consolidated)