Ar March 2004 - Only Consolidated

auditor's report

ON CONSOLIDATED FINANCIAL STATEMENTS

TO THE BOARD OF DIRECTORS OF DABUR INDIA LTD. We have audited the attached consolidated balance sheet of Dabur India Limited group, as at 31st March, 2004 and also the consolidated profit and loss account and the consolidated cash flow statement for the 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 prepared, in all material aspects, in accordance with an identified financial reporting frame work and 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 have relied upon recommendation of Consultants (Note No. B (2), Schedule-P) on impairment loss/impairability of fixed assets of parent company with the meaning of AS-28 issued by ICAI. We did not audit the financial statements of certain subsidiaries, whose financial statements reflect total assets of Rs.1341.70 lacs as at 31st March, 2004, the total profit of Rs.431.96 lacs and cash flows (net) amounting to Rs.292.49 lacs for the year ended 31st March, 2004. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us, and our

C1

CONSOLIDATED FINANCIALS

opinion is based solely on the report of other auditors. We report that the 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 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 subject to accounting policy No.A (2) (a) (on non-impairment of fixed assets of subsidiaries unlike that of parent company) and Note No. B (3), ScheduleP, the attached 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 consolidated balance sheet, of the state of affairs of Dabur India Ltd. as at 31st March, 2004. b) In the case of the consolidated profit and loss account, of the profit for the year ended on that date; and c) In the case of the consolidated cash flow statement, of the cash flows for the year ended on that date. For G. Basu & Co. Chartered Accountants S. Lahiri Partner Membership No. 51717 New Delhi

5th May, 2004

for the year ended

balance sheet

AS AT MARCH 31, 2004

(All amounts in Indian Rupees in lacs, except share data)

Schedule

as at 31st March, 2004

as at 31st March,2003

SOURCES OF FUNDS : Shareholders’ Funds: A) Share Capital B) Reserves and Surplus Minority interest Loan Funds: A) Secured Loans B) Unsecured Loans

A B B2

2,862.49 25,746.45 1,435.79

2,857.50 38,802.10 903.82

C D

8,370.69 4,080.75

8,300.90 13,125.20

Deferred Tax Liability Total

EB

796.95 43,293.12

390.41 64379.93

(A) Gross Block (B) Less : Depreciation (C) Net Block

F

Investments Deferred Tax Assets Current Assets, Loans and Advances:

G EB H

41212.67 16206.32 25006.35 12,975.24 57.01

40,549.66 18,846.85 25,702,81 10,176.02 34.13

15,482.30 7,115.37 2,020.95 9,365.51 33,984.13

22,219.80 13,628.57 4,229.56 12,125 52,203.30

21,367.03 8,022.48 29,389.51 4,594.51 659.90

18,168.37 5,950.28 24,118.65 28,084.65 382.32

43,293.12

64,379.93

APPLICATION OF FUNDS : Fixed Assets :

(A) (B) (C) (D)

Inventories Sundry Debtors Cash & Bank Balances Loans & Advances

Less: Current Liabilities and Provisions:

EA

(A) Liabilities (B) Provisions

Net Current Assets Miscellaneous Expenditure

IA

(To the extent not written off or adjusted)

Notes to Accounts

P

Total

As per our report of even date attached

For Dabur India Ltd.

For G. Basu & Co.

V. C. Burman

Chairman

Chartered Accountants

S. Lahiri Partner

P. D. Narang P. N. Vijay A. K. Jain

Director Director Addl. GM (Fin.) & Company Secretary

New Delhi 5th May, 2004 Dabur India Limited I A N N U A L R E P O R T I 2003-04

C2 75

profit and loss account

FOR THE YEAR ENDED MARCH 31, 2004

(All amounts in Indian Rupees in lacs, except share data)

Schedule

Income :

for the year ended 31st March, 2004

for the year ended 31st March,2003

132,956.05 907.14

137,085.75 718.43

133,863.19

137,804.18

58,146.81 6,540.31 3,469.81 9,155.46 39,726.00 1,528.17 391.88 2,489.27

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

121,447.71

127,168.46

12,415.48 7,602.53 19,95 250.00

10,635.72 4,564.09 5.64 250.00

20,287.96

15,455.45

1,135.18 348.65 31.67 1,717.49 49.80 4,007.49 0.00 220.05 513.46 155.50 2,312.50 3.96 812.80 8,979.40

1,032.91 299.70 38.99 1,428.77 58.48 2,571.75 2.67 0.00 327.90 17.95 2,312.50 1.33 630.64 6,731.86

20,287.96

15,455.45

3.72 3.71

3.17 3.16

285,987,220.00 286,984,379.00

285,662,514 286,177,354

J

Sales less returns Other Income Total Income

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 Transferred from debenture redemption reserve Provision For Taxation

Current Deferred

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

Balance carried over to Balance Sheet Earning per Share ( in Rs.) Basic Diluted

No. of Shares Basic Diluted

Notes to Accounts

P

As per our report of even date attached

For Dabur India Ltd.

For G. Basu & Co.

V. C. Burman

Chairman

P. D. Narang P. N. Vijay A. K. Jain

Director Director Addl. GM (Fin.) & Company Secretary

Chartered Accountants

S. Lahiri Partner

New Delhi 5th May, 2004

C3

CONSOLIDATED FINANCIALS

schedules

ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

Schedule

as at 31st March, 2004

as at 31st March,2003

5,000.00

5,000.00

5,000.00

5,000.00

2,862.49

2,857.50

2,862.49

2,857.50

1794.05 5665.90 370.23 56.93 7853.04

1,547.15 5,378.18 302.92 56.93 23,946.96

33.00 0.00 82.58 182.50 8979.41 728.81

20.08 250.00 82.58 182.50 6,731.89 302.91

25,746.45

38,802.10

249.29 75.00 126.91 82.41 902.18

161.57 75.00 0.00 36.62 630.64

1,435.79

903.82

SCHEDULE A - SHARE CAPITAL Authorised : 500000000

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

Issued and subscribed: 286249052

Equity shares of Re.1 each fully called up (previous year- 285749934 equity shares of Re. 1)

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 Companies Act 1956, equity shares of Rs. 10 were sub-divided in equity shares of Re. 1/- each on Dec. 15, 2000 by way of issue of 10 shares against each share formerly held by a shareholder.

3.

499118 ( previous year 156414) equity shares of Re. 1 each were issued during the year 2003-04 under "Employee Stock Option Scheme”.

4.

1320658 ( previous year 526118) equity shares of Re. 1 each are outstanding under ”Employee Stock Option Scheme” as on 31st March, 2004.

SCHEDULE B - RESERVES AND SURPLUS Capital reserve Share premium account Employees housing reserve/fund Capital redemption reserve General reserve (net of debit against exchange fluctuation Reserve Rs.19.52 previous year Rs.6.41 ) Legal reserve Debenture redemption reserve Investment allowance reserve Investment deposit reserve Profit and loss account Employee stock option scheme outstanding

SCHEDULE B2 - MINORITY INTEREST Share capital Share premium Capital reserve General reserve Profit & loss

Dabur India Limited I A N N U A L R E P O R T I 2003-04

C4 77

schedules

ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

as at 31.03.2004

as at 31.03.2003

0.00

500.00

0.00 1200.00 7.97 178.29 1,339.58

75.78 0.00 22.65 209.14 1,412.29

5644.85

6,081.14

8,370.69

8,300.90

55.55 33.00 1050.00 12.83 785.65 527.58 0.00 1,616.14 4,080.75

48.13 0.00 3,579.98 394.29 1,212.94 3,027.68 1,000.00 3,862.18 13,125.20

SCHEDULE C - SECURED LOANS A. Debentures : O- ( Previous year 500000)14.75% secured redeemable non convertible debentures of Rs.100 each as fully paid up and redeemed at par during the year (previous year 1 instalments was pending) Secured by: A)

For debentures amounting to Rs.1250 lacs (in terms of original issue)

1)

By a mortgage by deposit of title deeds in respect of all 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 : i)

Prior charges created and/or to be created in favour of EXIM bank & IDBI for their term loans , 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 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 : I)

Prior charges created and/or to be created in favour of company’s bankers on the stock of raw materials, semi finished goods, consumables stores and book debts and moveables for securing borrowings for working capital assistence in the ordinary course of business.

B. Banks and Financial Institution I

Term loans : Housing Development Finance Corporation Limited GE Capital Services Hongkong & Shanghi Bank Ltd Egypt Deferred Payment PICUP under trade tax loan scheme

II Short Term Loans - from Banks: (Secured bank and institutional loans are covered by first charge on fixed assets, inventories, book debts - (present & future) and guarantee from HSBC New Delhi)

SCHEDULE D - UNSECURED LOANS Deposits : Directors Public Companies Security deposit from dealers and others Term loan - from banks Book overdraft of current account with banks Commercial papers External commercial borrowing - ABN Amro Bank NV

C5

CONSOLIDATED FINANCIALS

schedules

ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

Schedule

as at 31st March, 2004

as at 31st March,2003

SCHEDULE EB - DEFERRED TAX LIABILITES ( NET) Deferred tax liability : Depreciation Technical knowhow fees

796.95 0.00

352.51 37.90 796.95

390.41

Less: Deferred tax assets : VRS payment Other disallowances under section 43B of Income Tax Act 1961

3.20 53.81

6.57 27.56 57.01 739.94

34.13 356.28

6,013.55 754.54 3,648.72 10,651.56 156.07 17.67 23.81

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

81.44 13.47 6.20

53.27 19.69 6.66

21,367.03

18,168.37

4,007.49 513.46 295.09 397.78 2,808.66 8,022.48 29,389.51

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

SCHEDULE EA - CURRENT LIABILITIES AND PROVISIONS a. 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 accured on public deposit b. Provisions : For dividend (proposed) - final For corporate tax on proposed dividend- final For leave salary For housing, bonus & gratuity & other welfares For taxation

SCHEDULE F - FIXED ASSETS Gross block Name of Asset Freehold land Leasehold land Building,roads & culvert Plant & machinery Vehicles Furniture & off equipment Computers Patents Live stock Capital work in progress Goodwill Total

Depreciation

As on Additions Tfr to Dabur Adjustment 31.03.03 2003-2004 Pharma Ltd 2003-2004 1,164.20 538.73 11,842.23 19,025.54 982.04 3,808.44 2,300.62 330.00 0.22 2,601.47 0.00

49.31 84.89 1,118.71 2,319.22 267.03 196.93 176.96 0.00 0.00 1,177.94 1,402.75

449.64 278.08 1,551.32 1,495.21 123.93 402.45 99.19 0.00 0.00 2,361.68 0.00

42,593.49

6,793.74

6,761.50

Net block

As on For the year Tfr to Dabur Adjustment 31.03.03 2003-2004 Pharma Ltd 2003-2004

As on 31.03.04

0.00 24.36 3,287.93 8,402.70 436.12 1,589.10 1,420.09 144.56 0.00 0.00 0.00

0.00 3.82 371.92 1,227.60 143.30 283.18 257.99 47.16 0.00 0.00 154.30

0.00 0.00 435.25 411.93 62.05 192.18 85.09 0.00 0.00 0.00 0.00

0.00 28.18 3,212.84 8,975.27 403.40 1,655.65 1,584.96 191.72 0.00 0.00 154.30

1,413.06 41,212.67 15,304.86

2,489.27

1,186.50

114.60 0.00 104.27 600.16 166.21 44.83 32.91 0.00 0.00 350.08 0.00

As on 31.03.04 649.27 345.54 11,305.35 19,249.39 958.93 3,558.09 2,345.48 330.00 0.22 1,067.65 1,402.75

0.00 0.00 11.76 243.10 113.97 24.45 8.03 0.00 0.00 0.00 0.00

As on 31.03.04

As on 31.03.03

649.27 1,164.20 317.36 514.37 8,092.51 8,554.30 10,274.12 10,622.84 555.53 545.92 1,902.44 2,219.34 760.52 880.53 138.28 185.44 0.22 0.22 1,067.65 2,601.47 1,248.45 0.00

401.31 16,206.32 25,006.35 27,288.63

Note : 1. Transfer to Dabur Pharma Ltd represent value of fixed assets transferred on 01.04.2003 as per Scheme of Demerger of pharmaceutical division of the company 2. Capital work in progress includes advance against capital goods Rs. 1177.94 ( [previous year Rs.2600.19)

Dabur India Limited I A N N U A L R E P O R T I 2003-04

C6 79

schedules

ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

Number

as at 31.03.2004

as at 31.03.2003

(490,918.00) (1,879,699.00)

0.00 0.00

200.00 200.00

(1,793,722.00) (464,286.00)

0.00 0.00

200.00 65.00

547,994.13 (268,414.34)

63.78

30.22

24,233,189.80

2,472.50

0.00

14,147,123.18

1,589.39

0.00

4,177,218.29

434.00

0.00

1,579,389.60

163.70

0.00

2,152,599.24

276.00

0.00

25,469,444.43

2,843.00

0.00

10,997,312.87

1,166.00

0.00

25,000,000.00

2,500.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

SCHEDULE G - INVESTMENTS A. Quoted-other than trade 1 Alliance 95- dividend (sold during the year) 2 ICICI - Prudential balance fund - dividend (sold during the year) 3 Birla balance - dividend (sold during the year) 4 Unit trust of india ( unit 64 scheme) (sold during the year) 5 Grindlays Cash Fund-IP- Growth (purchase during the year) units 44497182.51 (sold during the year) units 44217602.72 6 JM Floter Fund- S T P Growth (purchase during the year) units 183516056.53 (sold during the year ) units 159282866.73 7 Templeton Floting Rate income fund - ST (purchase during the year units 93441697.29 (sold during the year) units 79294574.11 8 DSP ML Floating rate fund - Growth (purchase during the year) units 59560621.21 (sold during the year) units 55383402.92 9 Birla Floating rate fund - S T P Growth (purchase during the year) units 20127854.83 (sold during the year) units 18548465.24 10 Chola liquid fund - institutional plus-growth (purchase during the year) units 21328759.93 (sold during the year ) units 19176160.70 11 Reliance liquid fund (purchase during the year) units 25469444.43 12 HDFC Frif STF - Growth (purchase during the year) units 10997312.87 13 LIC mutual fund (purchase during the year) units 25000000 14 Zurich mutual fund (purchase during the year) units 5332403.86 (sold during the year) units 5332403.86 15 Kotak liquid IP Growth (purchase during the year) units 8728014.50 (sold during the year) units 8728014.50 16 ING Vyasa liquid fund ( purchase during the year) units 6715131.73 ( sold during the year) units 6715131.73 17 Principal Cash Mgmt fund (purchase during the year) units 49217297.06 (sold during the year) units 49217297.06 18 Tata liquid fund (purchase during the year) units 24933170.48 (sold during the year) units 24933170.48 19 HSBC Cash fund (purchase during the year) units 22460690.68 (sold during the year) units 22460690.68 20 IL&FS Floating rate fund (purchase during the year) units 35103530.35 (sold during the year) units 35103530.35

C7

CONSOLIDATED FINANCIALS

schedules

ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

Number

as at 31.03.2004

as at 31.03.2003

105.00 1,350.00 4.99

105.00 1,350.00 4.99

0.00

7,652.02

0.02 0.01 0.03 0.07 0.05 0.00

0.02 0.01 0.03 0.07 0.05 0.10

6.50 0.00

6.50 1.10

0.00 0.00 0.00 0.20 0.00 0.00

1.38 336.29 3.24 0.20 30.00 (10.18)

12,975.24

10,176.02

6,339.12 2,516.26 197.85 1,206.75 5,222.32 15,482.30

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

248.14 11.98

519.56 137.97

260.12 11.98

657.53 137.97

248.14 6,867.23

519.56 13,109.01

7,115.37

13,628.57

SCHEDULE - G INVESTMENTS (Contd.) B. Unquoted I) Unquoted - trade investments 1 Sanat Products Ltd 50,000.00 2 Dabon International Ltd 13,500,000.00 3 Dabur Pharma Ltd 499,400.00 II) Unquoted - trade investments in subsidiary companies 1 Dabur Oncology Plc. (111,400,000.00) (transferred under de-merger scheme) III) Unquoted - other than trade investments 1 Commerce Centre Cooperative Housing Society Ltd 15.00 2 Capexil (agencies) Ltd 3.00 3 Dabur Employees Consumers Co-Op Stores Ltd 250.00 4 Dabur Employees Cooperative Credit Society Ltd 650.00 5 Co-Operative Stores Ltd, Super Bazar 500.00 6 Vertex Broadcasting Private limited (1,000.00) (shares sold during the year) 7 Green Valley Products Pvt. Ltd 65,000.00 8 Consortium Consumer Care Pvt Ltd (11,000.00) (sold during the year) 9 5% Special Nepal Govt. Bond 2063(sold during year) (3) 10 5% Special Nepal Govt. Bond 2064 ( sold during year) (5) 11 12.50% Maharashtra State Dev Loan 2004 (3) 12 VIII Series National Saving Certificate 13 Dabur Securities Pvt Ltd ( sold during year) (300020) (Less :Provision for diminution )

SCHEDULE H - CURRENT ASSETS, LOANS AND ADVANCES A. Current assets : Inventories: - 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 - Other debts (considered good)

Dabur India Limited I A N N U A L R E P O R T I 2003-04

C8 81

schedules

ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

as at 31st March 2004

as at 31st March 2003

35.03

34.00

1,658.85 143.44

3,690.69 501.05

119.77 37.52 0.95

0.00 0.00 0.95

25.39

2.86

2,020.95

4,229.55

24,618.62

40,077.93

114.63 3,555.57

880.04 4,585.88

2,626.71 1,196.05 411.84 655.40 805.31

2,469.90 992.33 732.20 666.83 1,798.17

SCHEDULE H - CURRENT ASSETS, LOANS AND ADVANCES (Contd.) Cash and bank balances : - Cash in hand - Balance with scheduled banks In current accounts In fixed deposit accounts - Balance with non scheduled banks In current accounts In fixed deposit accounts - Postal savings bank accounts (deposited with excise authority) - Remittance-in-transit & cheques-in-hand

b. Loans and advances (unsecured, considered good, unless stated otherwise) Loans & advances to others Security deposit with various authorities(including deposit with Govt. Authorities Rs. 501.73 previous year Rs. 1107.49) Advance payment of tax Advances to suppliers Advances to employees Balance with excise authorities Other advances Total (a+b)

9,365.51

12,125.37

33,984.13

52,203.30

SCHEDULE IA - MISCELLANEOUS EXPENDITURE (to the extent not written off or adjusted) Share issue expenses Less: Amortised during the year

0.00 0.00

37.81 37.81 0.00

Technical knowhow fees Less: Amortised during the year

108.11 23.54

0.00 120.92 12.82

84.57 Strategic management consultancy expenses Less: Amortised during the year

0.00 0.00

0.00

0.00

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

136.91 715.00 1.40

Less: Amortised during the year

850.51 275.18

575.33

219.23 82.32

136.91

Deferred advertisement & publicity Less: Amortised during the year

114.66 114.66

0.00

229.31 114.65

114.66

0.00

33.01 0.00 10.37

Preliminary expenses Add: addition during year Less: Amortised during the year

22.64 39.41 62.05

217.26 96.60 94.63

659.90

C9

108.11 92.86 92.86

CONSOLIDATED FINANCIALS

22.64 382.32

schedules

ANNEXED TO AND FORMING PART OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

for the year ended 31st March 2004

for the year ended 31st March 2003

119,460.50 13,495.55

125,439.33 11,646.42

132,956.05

137,085.75

66.21 46.00 194.12 0.00 83.62 34.96 327.22 50.89 104.12

102.12 19.44 172.61 2.75 0.38 106.20 279.88 (11.26) 46.31

907.14

718.43

SCHEDULE J - SALES AND OTHER INCOME A. Sales : Domestic sales less returns Export sales

B. Other income : Export subsidy Rent realised Sale of scrap Dividend from subsidiary companies Other dividend - (other than trade investment) Royalty received Miscellaneous receipts Profit on sale of investments Profit on sale of fixed assets

SCHEDULE K - COST OF MATERIALS Raw materials consumed : i) Opening stock ii) Add : purchases

5,814.66 22,663.50

5,550.93 24,439.88

iii) Less : closing stock

28,478.16 5,912.78

29,990.81 7,343.39 22,565.38

22,647.42

Packing materials consumed : i) Opening stock ii) Add : purchases

2,317.64 10,960.41

1,473.55 10,653.96

iii) Less : closing stock

13,278.05 2,105.61

12,127.51 2,250.95

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

11,172.44 21,327.60

9,876.56 24,725.65

1,348.79 8,164.92

2,406.57 9,984.28

9,513.71

12,390.85

1,212.78 5,219.54

2,880.30 9,003.47

6,432.32

11,883.77 3,081.39

507.08

58,146.81

57,756.71

Note : Opening stock of raw materials, packing materials, stock in process and finished goods excludes Rs. 1781.39; Rs. 158.91.Rs. 1569.30 and Rs. 1152.07 respectively being share of pharmaceutical division being demerged on 1st April 2003 under banner of a new corporate entity namely Dabur Pharma Limited.

Dabur India Limited I A N N U A L R E P O R T I 2003-04

C10 83

schedules

ANNEXED TO AND FORMING PART OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

for the year ended 31st March 2004

for the year ended 31st March 2003

2,176.55 552.20

2,394.80 493.87

180.91 48.54 346.05 165.56 3,469.81

142.44 246.49 332.21 169.02 3,778.83

5,466.14 910.23 2,189.42 589.67 9,155.46

6,205.55 1,149.58 2,581.40 446.05 10,382.58

574.65 96.53 209.51 9,395.82 3,396.42 1,880.10 17,151.81 1,698.16 1,164.86 406.42 115.27 2,915.21 1.88 40.88 108.43 455.67 114.38

585.75 153.94 229.40 8,597.35 3,649.46 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

39,726.00

42,065.82

802.70 283.32 442.15 1,528.17

1,127.45 976.03 509.13 2,612.61

0.00 23.54 0.00

37.81 12.82 92.86

SCHEDULE L - MANUFACTURING AND OPERATING EXPENSES Power and fuel Stores & spares consumed Repairs & maintenance : — Building — Plant & machinery — Others Processing charges

SCHEDULE M - PAYMENTS TO & PROVISIONS FOR EMPLOYEES Salaries, wages and bonus Contribution to provident and other funds Workmen and staff welfare Directors’ remuneration

SCHEDULE N - SELLING AND ADMINISTRATIVE EXPENSES Rent Rates and taxes Insurance Sales tax Freight and forwarding charges 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

SCHEDULE O - FINANCIAL EXPENSES Interest Paid on : Fixed period loan Others Bank Charges

SCHEDULE IB - MISC. EXPENDITURE WRITTEN OFF Share issue expenses Technical knowhow fees paid Strategic management consultancy expenses Deffered employee compensation under ESOP Less: Transferred to Directors’ remuneration Deferred advertisement & publicity Preliminary expenses

C11

CONSOLIDATED FINANCIALS

275.18 83.55

191.63 114.66 62.05 391.88

82.32 60.15

22.17 114.65 10.37 290.68

schedules

ANNEXED TO AND FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

SCHEDULE P - ACCOUNTING POLICIES & NOTES TO ACCOUNTS A. ACCOUNTING POLICIES Significant accounting policies are summarized below: 1. Principles of consolidation: The Consolidate Financial Statement relates to Dabur India Ltd. (the parent company) and Dabur Foods Ltd,( wholly owned subsidiary company incorporated in India), Dabur Overseas Ltd., Dabur International Limited (both wholly owned subsidiary companies incorporated in British Virgin Islands and Isle of MAN respectively), Dabur Nepal Pvt Limited ( a subsidiary body corporate incorporated in Nepal, the extent of holding of parent company being 79.96%), Pasadensa Foods Limited (a wholly owned subsidiary company incorporated in India , 100% stake where in is held by Dabur Foods Limited ), Dabur Egypt Ltd. (a wholly owned subsidiary body corporate incorporated in Egypt, 76% & 24% of stake wherein are held by Dabur Overseas Ltd and Dabur International Limited), Asian Consumercare Pvt Ltd ( a subsidiary company incorporated in Bangladesh 76% stake wherein is held by Dabur International Limited ) and WeikField Interanational (UAE) (a subsidiary body corporate incorporated in UAE, 38.41% stake where in is held by Dabur International Limited and subsidiary status thereon been achieved as discussed in note no 5 of Schedule P) 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 DNPL where the same is adjusted against share premium account and for Dabur International Limited and WeikField International (U.A.E) Ltd the same have been debited to goodwill . 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 for 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.

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, income and expenses of overseas subsidiaries have been translated in reporting currency in terms of exchange rates prevailing on year-end date. 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. 2. Accounting Convention: The accounts have been prepared in accordance with the historical cost convention. a

Fixed Assets and Depreciation:


Fixed assets are stated at recoverable value for assets impaired as per AS 28 issued by ICAI and at cost for other assets.




Cost includes inward freight, duties, and taxes and expenses incidental to acquisition and installation.




In respect of the parent company, Dabur Foods Ltd , Pasadensa Foods Limited & Asian Consumer care Pvt Ltd. depreciation on fixed assets has been provided on written down value method at rates specified in schedule XIV of the companies Act, except for Baddi, Katni, 5/1 Sahibabad Unit and Corporate Office of parent company,Dabur Egypt Limited , Dabur International Limited and Weik Field Limited where the depreciation have been provided on straight line method at the rates specified in aforesaid Schedule.




The parent company identifies impairable assets at the year-end in term of para-5 to 13 of AS –28 issued by ICAI for the purpose of arriving at impairment loss thereon being the difference between the book value and recoverable value of relevant assets unlike the subsidiaries. Said Impairment loss, when crystallizes, is charged against revenue of the year.

Dabur India Limited I A N N U A L R E P O R T I 2003-04

C12 85

schedules

ANNEXED TO AND FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

b

Investments:

Investments, being long term in nature are held at cost. Provision will be made as and when deemed necessary under AS-13 issued by ICAI. c. Inventories: Stocks are valued at lower of cost or net realizable value. Basis of determination of cost remain as follows: Raw materials, Packing materials, Stores & Spares Work-in-process
Finished goods d. Research and Development Expenses:



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

Contributions towards scientific research expenses are charged to the Profit & Loss Account in the year in which the contribution is made. e. Retirement Benefits: Liabilities in respect of retirement benefits to employees are provided for as follows:


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 gratuity trusts have taken the Group Gratuity Insurance Policy or actuarial valuation/management estimate.

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. f. Recognition of Income and Expenses:





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.




Exports Sales are accounted for on the basis of date of bill of lading.




All items of incomes and expenses have been accounted for on accrual basis.

g. 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 more subsequent periods has been considered for Dabur India Limited. For Dabur Egypt Limited,Dabur International Ltd (Erstwhile Redrock Limited),Dabur Nepal Pvt Ltd., Dabur Overseas Limited, WeikField Limited and Asian Consumercare Pvt Ltd. the same is not mandatorily applicable. In case of Dabur Foods Limited and Pasadensa Foods Limited ,considering carry forward loss in the books of both companies, no deferred tax has been recognized on the asset balances thereof due to restriction to the effect imposed under para 17, AS-22 issued by ICAI h. Contingent Liabilities: Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales Tax, Income Tax, Excise etc.), 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. i. 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 to accounts Capital as well as revenue implication of exchange fluctuation, charged to revenue, are disclosed in notes to accounts. j.

Employee Stock Option Purchase (ESOP): 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 Employee Compensation under ESOP as per guideline to the effect issued by SEBI.

k. Miscellaneous Expenditure:




C13

Technical know-how fees paid to Technical Collaborators are being amortized 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.

CONSOLIDATED FINANCIALS

schedules

ANNEXED TO AND FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2004

(All amounts in Indian Rupees thousands, except share data)

B: NOTES TO ACCOUNTS 1. Building constructed on leasehold land included in the value of building shown in Fixed Assets Schedule : As at 31st March 2004 Cost/Revalued Written Down 2

5375.68 3759.93

As at 31st March 2003 7368.20 5786.25

Two firms, one being a firm of Chartered Accountants and the other a firm of Chartered Engineers entrusted for the exercise of impairment of assets of parent company have recommended against any further impairment in due cognizance of paragraphs 5 to 13 of AS –28 issued by ICAI.Considering the above facts and as concluded by the firms :a) None of the assets qualify for the impairment loss for the year (Previous year Rs.4894.69) which was adjusted against the profit & loss account /opening reserve. b) Impairment of assets contributed to write back of deferred tax with general reserve by Rs. Nil (Previous year Rs.1800.75) being the depreciation component of deferred tax liability on impaired value of assets provided earlier against general reserve.

3. Investments held are both strategic and non-strategic. There is no decline in carrying cost of non-strategic investments. Remaining investments being strategically held, no provision has been deemed necessary in this connection in view of temporary nature of decline which are poised for recovery in near future as assessed by the management based on techno economic evaluation of the future cash flow of investee companies. 4. During the year, parent company has disposed off Dabur Finance Limited (an erstwhile Wholly owned Subsidiary Company ) and the loss of Rs.84.51 sustained thereof has been charged to profit & loss account as per para 22 of AS-21 issued by ICAI. 5. (a) Following attainment of subsidiary status by Dabur International Limited (Erstwhile Redrock Ltd. )and Weikfield International UAE within the meaning of Section 4 of Companies Act, 1956, their accounts from respective applicable date have been consolidated with the Parent company’s accounts in terms of accounting policy No.1. This added /(reduced) various heads of accounts of consolidated financial statements as follows : Particulars











Rs.

Statutory Reserve Gross Block Accumulated depreciation Investments Inventories Sundry Debtors Cash and Bank Loans & advances Current Liabilities and provision Secured Loans (taken)

8.96 2042.87 1068.46 414.53 850.79 1121.06 15.20 113.93 861.61 1165.35

(b) Pharmaceutical Division of the parent Company has been demerged under banner of a separate Corporate entity namely Dabur Pharma Ltd with effect from 1st April 2003 pursuant to the scheme of demerger to the effect approved by the Hon’ble High Court, Delhi on 17th Oct 2003 and filling of certified copy of the order with the Registrar. Consequent upon demerger of the pharmaceutical division, the following assets ,liabilities (including share holder’s fund represented by reserve) have been transferred to Dabur Pharma Ltd. Liabilities Shareholder’s Fund (General Reserve) Secured Loans Unsecured Loans Current Liabilities & Provisions

Rs. in Lacs 18618 437 2394 1324

Assets Fixed Assets Investment Current Assets Loan & Advances Deferred Tax/Misc Expenditure

Rs. in Lacs 5574 7652 8854 631 62

Dabur Pharma Ltd is to issue 1431.25 Lacs number of equity share of Re. 1/- each at par among members of the parent company, pro-rata in consideration of transfer of assets and liabilities in favour of Dabur Pharma Ltd which is still pending. (c ) Considering what have been said in ‘a and ‘b’ above ,figures of previous year are not comparable with those of current year to this extent. 6. Contingent Liabilities: i.

Claims not acknowledged as debts: a) In respect of civil suits filed against the company Rs. 267.05 (Previous year 168.42) b) In respect of claims by employees Rs.0.50 (previous year 9.48) Dabur India Limited I A N N U A L R E P O R T I 2003-04

C14 87

schedules

ANNEXED TO AND FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

c) In respect of letters of credit Rs. 3881.94 (previous year 2125.88) ii

In respect of Bank Guarantees executed Rs .1916.20 (previous year 700.73)

iii In respect of Sales Tax under appeal Rs. 399.40 (previous year 434.79) iv In respect of excise duty disputes pending with various judicial authorities Rs.2895.83 (previous year Rs.2941.63) v

In respect of Corporate Guarantees given by the Company Rs. 13891.74 (previous year Rs.7138.88)

vi In respect of Income tax under appeal Rs.462.29 (previous year 112.68) vii Estimated Amount of contract remaining to be executed on capital Account Rs.1660.21 net of Advance (previous year Rs.486.80) viii In respect of Bill Discounting of Company Rs.4142.80 (Previous year Rs.179.80) ix In respect of Dividend Tax Rs.49.16 (previous year Rs.49.16) 7. The other Notes to Accounts containing inter-alia explanatory material except for quantative particulars pertaining to foreign subsidiary ,disclosure of which is not required under respective statute ,are disclosed with the accounts of different companies under consolidation. 8A. Related party Disclosures Related party disclosures as required under AS 18 issued by the Institute of Chartered Accountants of India are given below: (a) Name of related party and nature of related party relationship where control exists:- Nil (b) Name of the related party and nature of related party relationship other than those referred to in (a) above in transaction with the company:(i) Joint venture/Joint venture partners:Dabon International Pvt. Ltd. Mr. Rukma Rana, Joint venture partner in Dabur Nepal Pvt. Ltd. Green Valley Products Pvt Ltd. (ii) Key management personnel (whole time directors/manager) a) Pradip Burman b) c) d) e) f)

Dr. Anand Burman Amit Burman P. D. Narang Sunil Duggal Sanjay Sharma

Relatives of Key Management Personnel R C Burman Chetan Burman A.C. Burman Asha Burman — — —

(iii) Associate Entities over which key management personnel are able to exercise significant influence 1. Malhotra Trading Co. 2. Jetways Travels Pvt. Ltd. 3. Gyan Enterprises Pvt Ltd. 4. Puran Associates Pvt Ltd 5. Acee Enterprises 6. Chowdry Associates 7. Miracle Commercial Enterprises Pvt Ltd 8. Wakarusa Laboratories Pvt Ltd 9. Dabur Research Foundation 10. Adbur Pvt. Ltd. (iv) An enterprise owned by any directors of Dabur India Ltd., (even though he may not be director in that enterprise) a) VIC Enterprises Pvt. Ltd b) Ratna Commercial Enterprises Pvt. Ltd (v) An enterprise owned by major shareholders i) Milky Investment & Trading Co . ii) Sanat Products Ltd iii) Sahiwal Investment & Trading Co. (vi) Associate Entities over which key management personnel are able to exercise significant influence

C15

CONSOLIDATED FINANCIALS

schedules

ANNEXED TO AND FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2004

(All amounts in Indian Rupees in lacs, except share data)

1. Dabur Ayurvedic Speciality Limited 2. Williamsons India Pvt Ltd. 8B. Transaction with related parties (Consolidated) for the period 01.4.03 to 31.03.2004 ASSOCIATES Purchases of Goods

KEY MGT. PERSONNEL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.35 0.00 0.00 (0.48) 517.63 (457.84) 0.00 (0.66) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1,882.15 (1,701.38) 101.37 (71.48) 7,475.95 (2,758.96) 17,729.28 16,188.40 (3,779.63) 6.00 (22.70) 36.62 (51.04) 0.00 0.00 185.07 (50.00) 258.34 (368.33) (1.44) 455.67 (1750.00) 34.96 (106.21)

Sale of Goods Receiving of Services Repayment of Loans Recd Loans Received Rent Paid Interest Recd On Loans Given Remuneration/Exg./Pension Repayment of Loans Given (Instl.Recd) Interest Paid On Loan Recd Security deposit recd. Donation Given Royalty Received

RELATIVES OF KEY MGT. PERSONNEL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 127.80 (334.88) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 1,882.15 (1,701.38) 101.37 (71.48) 7,475.95 (2,758.96) 17,729.28 16,188.40 (3,779.63) 16.35 (22.70) 36.62 (51.52) 645.43 (792.72) 185.07 (50.66) 258.34 (368.33) (1.44) 455.67 (1750.00) 34.96 (106.21)

OUTSTANDING AS ON 31.03.2004 54.10 (42.21) 12.37 (3.88) 896.89 (268.19) 0.00 600.00 (2,289.00) 0.00 (12.56) 0.00 0.00 0.00 0.00 113.34 (353.16) 0.00 0.00 0.00 0.00 0.00 34.96 (90.65)

9. Information pursuant to AS-17 issued by ICAI : FMCG Current Year Revenue External sales Inter-segment sales Total revenue Result Segment result Unallocated corporate expenses Operating profit Interest expense (Net of Interest Income) Income Tax(Current + Deferred) Profit from ordinary activities Extraordinary loss: uninsured earthquake damage to factory Net profit Other Information Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Capital expenditure Depreciation Non-cash expenses other than depreciation

PHARMACEUTICALS

FOODS

ELIMINATIONS

OTHERS

Total Consolidated

Previous Year

Current Year

Previous Year

Current Year

Previous Year

Current Year

Previous Year

Current Year

Previous Year

Current Year

Previous Year

119244.0 106090.8

0.00

18379.5

8497.9

7607.3

0.00

0.00

5214.16

5008.11 132956.0 137085.7

119244.0 106090.8

0.00

18379.5

8497.9

7607.3

0.00

0.00

5214.16

5008.11 132956.0 137085.7

12871.4

9798.6

0.00

2069.9

506.0

354.1

0.00

0.00

566.14

1025.74 13943.6 13248.3

12871.4 1026.6

9798.6 1531.3

0.00 0.00

2069.9 515.8

506.0 375.6

354.1 313.8

0.00 0.00

0.00 0.00

566.14 125.96

1025.74 251.81

13943.6 1528.2

13248.3 2612.6

0.00 11844.8

0.00 8267.2

0.00 0.00

0.00 1554.1

0.00 130.5

0.00 40.3

0.00 0.00

0.00 0.00

0.00 440.18

0.00 773.94

1483.8 10931.6

1332.6 9303.0

11844.8

8267.2

0.00

1554.1

130.5

40.3

0.00

0.00

440.18

773.94

10931.6

9303.0

58816.0

51664.3

0.00

22711.9

6673.4

4634.0 (4538.33) (3457.39)

58816.0 29910.7

51664.3 28917.0

0.00 0.00

22711.9 4120.4

6673.4 6056.5

4634.0 (4538.33) (3457.39) 4976.9 (533.27) (433.56)

29910.7 3812.7 1891.3 0.00

28917.0 3397.8 2029.0 0.00

0.00 0.00 0.00 0.00

4120.4 1095.2 431.0 0.00

6056.5 1803.0 263.5 0.00

4976.9

(533.27)

(433.56)

174.1 0.00

0.00 0.00

0.00 0.00

8387.91 10059.41 69339.0 85612.2 2626.7 2469.9 8387.91 10059.41 71965.7 88082.1 4338.28 5723.50 39772.2 43304.3 2808.7 2596.8 4338.28 5723.50 42580.8 45901.0 21.33 5615.8 4514.3 334.52 296.88 2489.3 2931.0 0.00 0.00 659.9 382.3

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.132956.00(137085.75) , the export sales is of Rs.13495.50 (11646.4) and domestic sale is 119460.5 (125439.3)

Dabur India Limited I A N N U A L R E P O R T I 2003-04

C16 89

statement of cash flow

PURSUANT TO AS-3 ISSUED BY ICAI

(All amounts in Indian Rupees in lacs, except share data)

for the year ended 31st March 2004

for the year ended 31st March 2003

12,415.48

10,635.72

A. CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax and extra ordinary items ADD: Depreciation Miscellenous Exp. written off Miscellenous exp. written of (included in director remun.) Interest

2,489.27 391.88 83.55 1,528.17

4.492.87

2,931.03 290.68 60.15 2,612.61

16,908.35 LESS: Dividend Received Profit on sale of investment Profit on sale of Assets Operating profit before working capital changes Working capital changes Increase/(decrease) in inventories Increase/(decrease) in Debtors Increase/(decrease) in trade payables

83.62 50.89 104.12

238.63

16,530.19 3.13 (11.26) 46.31

16,669.72 (2,020.50) (4,039.20) (4,503.66)

5,894.48

38.17 16492.01

1,828.53 (364.65) (2,867.11)

Increase/(decrease) in working capital Cash generated from operating activities Interest paid Tax paid Income tax refund Corporate tax on dividend

3,173.67 14,721.57

(6443.66) 6547.78 (80,339.17) 69,938.84 83.62

(4,514.29) 7,856.79 (20,043.88) 12,554.04 3.13

(10,212.59)

(4,144.20)

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

4.99 660.98 (344.19) (2,135.03) (4,632.15) 2,285.65 (4,666.94)

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

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

(8,826.69)

(9,914.89)

5,236.64 2,566.30 2,020.95

662.49 3,567.06 4,229.55

CASH FLOW FROM INVESTING ACTIVITIES

CASH USED(-)/(+)GENERATED FOR INVESTING ACTIVITIES (B)

CASH FLOW FROM FINANCING ACTIVITIES

Net increase(+)/decrease(-) in cash & cash equivalents (A+B+C) Cash and cash equivalents opening balance (1st April 2003) Cash and cash equivalents closing balance (31st March 2004) Note : Opening Cash & Cash Equivalenets excludes Rs. 1663.26 being share of Pharmaceutical division being demerged on 1st April 2003 under banner of a new corporate entity namely Dabur Pharma Ltd.

C17

2,551.07 884.10 (261.50) 0.00 2,957.16

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

C.

1,528.17 881.04 0.00 547.95

(1,403.23) 17,895.25

24,275.92

CASH USED(-)/(+)GENERATED FOR OPERATING ACTIVITIES (A)

B.

(10,563.36) 27,233.09

CONSOLIDATED FINANCIALS