DABUR INDIA LIMITED. Half Yearly Financial Report

Transcription

1 DABUR INDIA LIMITED Half Yearly Financial Report

2 Content Board of Directors 4 Management Discussion and Analysis 5 Auditor s Report 8 Financial Statements 9 Consolidated Financial Statements 20 2

3 a trusted name in natural healthcare for over 100 years, is known for providing a range of efficacious and time-tested healthcare products based on the principles of Ayurveda. a premium brand and a leader in its category, is one of the flagship brands and a popular name in the natural personal care space. a tasty fun-filled digestive available in various forms - from tablets, traditional Churnas to modern formats like centre-filled candy - appealing to all age groups. country s leading brand of packaged fruit juices, provides the largest range of refreshing and healthy fruit juices that are 100 percent natural and free of preservatives. a new member in the family of Dabur s key brands, provides a range of herbal and natural products across various FMCG categories with a focus on providing quality and affordability. 3

4 BOARD OF DIRECTORS Dr. Anand Burman Mr. Amit Burman Mr. Saket Burman Mr. Mohit Burman Mr. P D Narang Mr. Sunil Duggal Mr. R C Bhargava Mr. P N Vijay Dr. S Narayan Mr. Albert Wiseman Paterson Dr. Ajay Dua Mr. Sanjay K Bhattacharyya Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Director SR GM (FINANCE) & COMPANY SECRETARY Mr A. K. Jain AUDITORS M/s G. Basu & Co. Chartered Accountants INTERNAL AUDITORS PricewaterhouseCoopers Pvt. Ltd. BANKERS Punjab National Bank Standard Chartered Bank The Hongkong & Shanghai Banking Corporation Ltd. The Royal Bank of Scotland Citibank N.A. HDFC Bank Ltd. IDBI Bank Ltd. CORPORATE OFFICE Dabur India Limited, Dabur Tower, Kaushambi, Sahibabad, Ghaziabad , (U.P.), India Tel: , Fax: Website: investors@dabur.com REGISTERED OFFICE 8/3, Asaf Ali Road, New Delhi , India Tel:

5 Management Discussion and Analysis The current macroeconomic environment continues to remain challenging in the backdrop of weak global economic environment. India s GDP forecasts have been lowered, with the Reserve Bank of India now forecasting a GDP growth rate of 6.5% for fiscal The government has taken up the reform agenda and has initiated steps to increase FDI (Foreign Direct Investment) in sectors such as multi-brand retail, aviation, insurance etc. These initiatives may bode well for the Indian economy going ahead. Real GDP Growth Rate - YoY (%) During the monsoon season there were fears of drought like conditions due to deficient rains, which eased towards the end of the season with overall deficiency reducing to 8% of long term average. Seasonal Rainfall (Jun-Sept 2012) (in mm) % 6.7% 8.4% 8.4% 6.5% Actual Normal FY08 FY09 FY10 FY11 FY12 Source: CSO and RBI estimates Inflationary pressures still persist with the WPI hovering in the 7.5-8% range. Rate cuts from RBI are likely to come about in the case of inflation sliding below RBI s tolerance level. Source: Indian Meteorological Department (IMD) The FMCG sector continued to report good volume led growth in revenues during the first half of fiscal Rural India, which contributes to a third of the overall FMCG sector continued to grow well driven by factors such higher MSPs (Minimum Support Prices) for agricultural produce, employment guarantee schemes and growth in services. Furthermore, aspiration levels continue to trend upwards with rural consumers demanding branded products. WPI based Inflation (%) 7.6% 7.6% 7.5% 7.5% 7.5% 7.8% Recent reports indicate incremental consumption expenditure in Rural India has been significantly ahead of Urban India during the past few years. Incremental consumption expenditure in over in Rs. billion Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Source: Office of Economic Adviser Urban Rural Source: NSSO (National Sample Survey Organisattion) and CRISIL Estimates 5

6 Dabur Performance Overview Dabur continued to perform well, with sales growing by 21.0% to Rs. 2,984.6 crores in the first half of fiscal Input costs pressures eased somewhat as compared to last year, with material costs as % of sales declining to 49.7% in the first half of fiscal v/s 51.4% in the first half of fiscal We continue to invest strongly behind our brands as reflected in a 46.8% surge in our advertisement expenses during the first half of fiscal EBITDA margins were at 17.8% in the first half of fiscal as compared to 18.5% in the first half of fiscal The Profit after Tax grew by 16.6% to Rs crores in the first half of fiscal Consumer Care Category Growth Rates (%) 16.7% 10.9% Health Supplements Digestives 17.9% OTC & Ethicals 11.8% Hair Care 19.0% Home Care 7.5% Oral Care H1 FY % Skin Care Foods Consumer Care Business The Consumer Care business grew by 13.9% to Rs. 1,585.6 crores in the first half of fiscal , with strong growths in Health Supplements, OTC & Ethicals, Home Care and Skin Care portfolio. Premium toothpaste portfolio registered strong growth while there was some pressure on the economy toothpaste segment and toothpowders, resulting in moderate overall growth in oral care. Shampoo category bounced back during the half year period with growth exceeding 30%. Foods continued on the strong growth trajectory and grew by 26.9% to Rs. 337 crores during the first half of fiscal , driven by strong volume growth and new variants. New variants such as Real Pomegranate and Apricot performed exceedingly well. The company is in the process of introducing more variants and flavours under both Real and Activ brands. International Business Dabur s International Business grew by 24.4% in the first half of fiscal and now contributes to almost a third of our consolidated sales. The key growth markets have been the GCC 6

7 (Gulf Co-operative Council), Egypt, Nigeria, Bangladesh and Nepal. In terms of product categories, hair creams, hair oils and toothpastes performed well. The international business continued to focus on innovation and launched new products such as Vatika Hair Serum, Vatika Black Seed Enriched Hair Oil, professional range of Shampoos and Conditioners, etc. Sales & Distribution After successful completion of our urban distribution enhancement initiative viz. Project Speed, the rural distribution initiative, Project Double is on track and should be complete in the second half of fiscal As part of this the company is increasing its direct presence in select rural geographies in order to enhance the reach as well as quality of distribution and the product mix for rural consumers. The initiative has enhanced our product width and depth in the hinterland and we are witnessing good momentum in sales. Manufacturing The progress of construction of our Sri Lanka plant is on track and is likely to be complete by the end of fiscal In addition, we are now in the process of setting up a manufacturing facility in Bangladesh to cater to the fast growing local market. We continue to undertake initiatives to improve sustainability, encompassing energy and water conservation aspects. Some of these have been commissioning of Bio Briqutte boilers and reuse of ETP treated water in cooling towers at our plants. Overall the company was able to manage and tide over the challenges of inflation and adverse currency movements during the half year period and reported double digit revenue and profit growth. Continued investments behind brand building and innovation coupled with the distribution enhancement initiatives will enable the company to drive good revenue growth going forward. 7

8 AUDITORS REPORT To the Board of Directors, Dabur India Limited, We have audited the attached condensed Balance Sheet of Dabur India Limited as at 30th September, 2012 and its Statement of Profit & Loss and the Statement of Cash Flow for the half year ended on that date attached thereto. These financial statements are the responsibility of the Company s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We hereby report that : i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of audit. ii. iii. iv. In our opinion, proper books of accounts, as required by law have been kept by the Company so far as appears from our examination of books of accounts. The Condensed Balance Sheet and Condensed Statement of Profit & Loss dealt with by this report are in agreement with the books of accounts. Condensed Balance Sheet, Condensed Statement of Profit & Loss and Statement of Cash Flow have been prepared in due compliances of accounting standards referred to in sub section (3c) of Section 211 of Companies Act v. In our opinion and according to the information and explanations given to us, the said accounts read with selected explanatory notes appearing in Schedule A give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) In the case of Condensed Balance Sheet, of the State of Affairs of the Company as at 30th September, 2012; b) In the case of Condensed Statement of Profit & Loss, of the Profit for the half year ended on that date; and c) In the case of Statement of Cash Flow, of the cash flows for the half year ended on that date. For G BASU & CO Chartered Accountants Firm Registration No E ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No

9 CONDENSED BALANCE SHEET as at 30th September 2012 I II Particulars As at As at (Rs. in Lacs) Sep Mar Equity And Liabilities 1. Share holders Funds a) Share Capital 17,429 17,421 b) Reserves And Surplus 1,27,554 1,12, Non-Current Liabilities a) Long Term Borrowings b) Deferred Tax Liabilities (Net) 3,064 2,711 c) Long-Term Provisions 44,595 37, Current Liabilities a) Short-Term Borrowings 18,555 27,214 b) Trade Payables 23,205 32,779 c) Other Current Liabilities 42,003 31,689 d) Short-Term Provisions 19,098 21,574 Total 2,95,576 2,84,073 Assets 1. Non-Current Assets a) Fixed Assets i) Tangible Assets 58,570 57,819 ii) Intangible Assets iii) Capital Work-In-Progress 1,595 1,158 b) Non-Current Investments 16,159 15,948 c) Long-Term Loans And Advances 40,345 33,990 d) Other Non-Current Assets 7,354 8, Current Assets a) Current Investments 36,822 39,324 b) Inventories 48,460 52,857 c) Trade Receivables 21,779 22,417 d) Cash And Cash Equivalents 38,282 26,129 e) Short-Term Loans And Advances 22,456 22,111 f) Other Current Assets 2,988 3,222 Total 2,95,576 2,84,073 Accounting Policies and Notes to Accounts (A) For Dabur India Limited As per our report of even date attached Dr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: E A.K. JAIN, Senior G.M.(Finance) Cum Company Secretary ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No:

10 CONDENSED STATEMENT OF PROFIT AND LOSS for the Quarter and Half Year ended 30th September, 2012 (Rs. in Lacs) DESCRIPTION For the For the For the six For the Six qtr. ended Qtr. ended months ended months ended Sep Sep Sep Sep I Revenue from operations 1,04,278 87,900 2,06,025 1,72,570 II Other Income 2,162 1,265 4,324 2,715 III Total Revenue (I +II) 1,06,440 89,165 2,10,349 1,75,285 IV Expenses Cost of materials consumed 38,204 37,200 77,394 71,731 Purchase of stock in trade 15,288 15,723 31,886 29,614 Changes in inventories of FG, WIP & Stock in trade Finished Goods 189 (6,832) (137) (7,216) Work in Progress 1, (235) Stock in trade Employee benefits expenses 7,104 6,164 13,559 12,102 Finance costs , Depreciation and Amortisation expenses 1,663 1,593 3,455 3,382 Other Expenses 22,109 16,896 47,374 35,942 Total Expense 86,890 71,544 1,75,667 1,46,114 (V) Profit before exceptional and extraordinary items and tax (III - IV) 19,550 17,621 34,682 29,171 (VI) Exceptional Items (VII) Profit before extraordinary items and tax (V - VI) 19,550 17,621 34,682 29,171 (VIII) Extraordinary Items (IX) Profit before tax (VII - VIII) 19,550 17,621 34,682 29,171 (X) Tax expense (1) Current tax 3,912 3,525 6,939 5,837 (2) Deferred Tax (XI) Profit/(Loss) for the year from continuing operations (IX - X) 15,497 13,866 27,389 22,974 (XII) Earnings per equity share ( before Extraordinary items) (1) Basic (2) Diluted (XIII) Earnings per equity share (after Extraordinary items) (1) Basic (2) Diluted Accounting Policies and Notes to Accounts (A) For Dabur India Limited As per our report of even date attached Dr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: E A.K. JAIN, Senior G.M.(Finance) Cum Company Secretary ANIL KUMAR Place: New Delhi Partner Date: 26th October, Membership No: 9390

11 STATEMENT OF CASH FLOW (Pursuant to AS-3) indirect method for the period ended 30th September 2012 (Rs. in Lacs) Particulars For the period ended For the period ended A. Cash Flow from Operating Activities Sep Sep Net Profit Before Tax and Extraordinary Items 34,682 29,171 Add: Depreciation 2,309 1,834 Loss on Sale of Fixed Assets Fixed Assets Discarded/Written Down - - Miscellaneous Exp. Written off 1,262 1,686 Provision for Contingent Liability - - Interest 1, Unrealised Loss on Financial Instruments Amortisation Cost (136) - Unrealised Loss / (Gain) in Foreign Exchange (266) 4,256 (114) 4,219 38,938 33,390 Less: Interest Received 3,698 2,343 Profit on Sale of Investment Profit on Sale of Assets 6 4, ,678 Operating Profit before Working Capital Changes 34,751 30,712 Working Capital Changes Increase/(Decrease) in Inventories (4,397) 5,605 Increase/(Decrease) in Trade Receivables (638) 378 Increase/(Decrease) in Other Current Assets (980) - Decrease/(Increase) in Trade Payables and other Payables 420 8,718 Increase/(Decrease) in Working Capital (5,595) 14,701 Cash Generated from Operating Activities 40,346 16,011 Tax Paid 6,355 6,355 6,362 6,362 Cash Used(-)/(+)Generated for Operating Activities (A) 33,991 9,649 B. Cash Flow from Investing Activities Acquisition of Fixed Assets (2,988) (6,000) Sale of Fixed Assets Purchases of Investment (2,12,345) (1,53,501) Interest Received 3,156 1,507 Proceed of Sale of Investments 2,15,468 1,75,321 Repayment (-)/Proceeds(+) from Loan to Subsidiaries (550) (850) Cash Used(-)/(+)Generated for Investing Activities (B) 2,798 16,567 11

12 STATEMENT OF CASH FLOW (Contd..) (Pursuant to AS-3) indirect method for the period ended 30th September 2012 (Rs. in Lacs) Particulars For the period ended For the period ended C. Cash Flow from Financing Activities Sep Sep Proceeds from Share Capital & Premium 4 6 Repayment(-)/Proceeds (+) of Long term secured Liabilities - (236) Repayment(-)/Proceeds(+) from Short Term Loans (8,392) 3,377 Repayment(-)/Proceeds(+) from Other Unsecured Loans (41) (9,128) Payment of Dividend (13,028) (11,293) Corporate Tax on Dividend (2,120) (1,836) Interest Paid (1,058) (786) Cash Used(-)/+(Generated) in Financing Activities (C) (24,635) (19,896) Net Increase(+)/Decrease (-) in Cash And Cash Equivalents (A+B+C) 12,154 6,320 Cash and Cash Equivalents Opening Balance 26,128 19,241 Cash and Cash Equivalents Closing Balance 38,282 25,561 Cash and Cash Equivalents (year end) 38,282 25,561 Balances with Banks without Restatement 37,970 25,293 Unrealised Gain/(Loss) on Foreign Exchange Fluctuation Cheques / Drafts in Hand 1 - Cash-in-Hand For Dabur India Limited As per our report of even date attached Dr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: E A.K. JAIN, Senior G.M.(Finance) Cum Company Secretary ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No:

13 SCHEDULE A (Rupees in lacs, except Share Data) Selected Explanatory Notes 1. ACCOUNTING POLICIES 1.1 Basis of Preparation of Financial Statements The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian GAAP. Accounts and disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules, other pronouncements of ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable. Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue, expenses and contingent liability pertaining to year/period, the financial statements relate to. Actual result could differ from such estimates. Any revision in accounting estimate is recognized prospectively from current year/period and material revision, including its impact on financial statement, is reported in notes to accounts in the year/period of incorporation of revision. 1.2 Significant Accounting Policies The Company has applied the same accounting policies in this half yearly financial statements as have been applied in its annual financial statements for the year ended 31st March, 2012 except for recognition of deferred tax on estimated basis as against actual basis. Preparation of Balance Sheet, Profit & Loss Account, Cash Flow Statement including disclosures made there on in notes to accounts and condensed Balance Sheet and Profit and Loss Account have been made in terms of AS 25 mandated by ASB. 2. NOTES TO ACCOUNTS 2.1 Contingent Liabilities (Not provided for) : A. Claims against the company not acknowledged as debts: i. In respect of Civil Suits filed against the company Rs. 970 (previous year Rs. 770 ). ii. In respect of Claims by Employees Rs. 51 (previous year Rs. 44 ). iii. In respect of Sales Tax under appeal Rs (previous year Rs. 1070). iv. In respect of Excise Duty disputes pending with various authorities Rs (previous year Rs. 7611) v. In respect of Income tax under appeal Rs. 21 (previous year Rs. 319). B. Guarantees given: In respect of Guarantees furnished by the Company Rs (previous year Rs ) C. Information pursuant to AS 29 on contingent liabilities provided for: i) Brief particulars of provision under AS 29 towards liabilities disputed being carried over from previous year without adding to or withdrawal therein /therefrom: 13

14 (Rupees in lacs, except Share Data) Nature of Liability Particular of dispute Opening Liability Provision made during Provision adjusted during Closing Provision Forum where the dispute is pending the period the period Sales Tax Classification of Laldant Manjan Filed review application with High Court Entry Tax Entry tax on car Sales Tax Classification of hajmola Candy Appeal pending before S T Appellete Sales Tax Tax Paid purchase Pending before High Court Excise Hajmola Candy Tribunal classification matter Excise Capital Goods removal DC Appeal Total ii) Resulting outflows against above disputed liabilities, if mature, are expected to be in succeeding year. iii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution. D. Commitments: Estimated amount of contract remaining to be executed on capital account Rs (previous year Rs. 1665). 2.2 Related Party Disclosures in terms of AS Enterprises where control exists: 1. Dabur Nepal Private Ltd. 2. Dabur (UK) Ltd. 3. Dabur Egypt Ltd. 4. Dabur International Limited 5. Asian Consumercare Private Limited 6. African Consumercare Limited 7. Asian Consumercare Pakistan (Pvt.) Limited 8. Naturelle LLC. 9. H & B Stores Limited. 10. Dermoviva Skin Essentials Inc. 11. Dabur Egypt Trading Ltd. 12. Hobi Kozmetik 13. Ra Pazarlama 14. Namaste Laboratories LLc, US 15. Hair Rejuvenation & Revitalization Nigeria Ltd 16. Healing Hair Lab International LLc, US 17. Urban Lab International LLC, USA 18. Dabur Lanka (Pvt.) Limited 19. Namaste Cosmetics LTDA, Brazil 20. Weikfield International(UAE) LLC upto Other related parties in transaction with the company Associate/Joint Ventures: Dabon International Pvt. Ltd. (Associate) Forum 1 Aviation Limited Key Management Personnel and relatives of such personnel: Director : P D Narang Sunil Duggal 14

15 (Rupees in lacs, except Share Data) Related Party Transactions : Related Party Transactions as on Subsidiary JV/ Partnership Key Management personnel Entity Under Significant Influence Total Outstanding as on period end 1. Purchase of Goods (16211) (-) (-) (169) (16380) (35) 2. Sale of Goods (2353) (-) (-) (-) (2353) (1766) 3. Royalty Expense (5) (-) (-) (-) (5) (19) 4. General Expenses (-) (223) (-) (-) (223) (49) 5. Interest Received on Loan (9) (-) (-) (-) (9) 0 6. Remuneration (Exg./Pension) (-) (-) (1259) (-) (1259) 0 7. Employee Stock Option Scheme (136) (-) (728) (-) (865) 0 8. Interest Received on Sec. Deposit (-) (-) (-) (-) loan Given (1600) (1600) (2650) 10. Investment (4489) (-) (-) (-) (4489) (7125) 11. Equity Contribution (1483) (-) (-) (-) (1483) (7125) 12. Security Deposit (-) (-) (-) (-) (-) (38) 13. Guarantees & Collaterals (29189) (-) (-) (-) (29189) (121690) Notes: A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. Rs (Rs ) B. Item referred to in 2 above includes Sales to Dabur International Ltd., Weikfield International (UAE) LLC and Naturelle LLC Rs. 437, Rs. 0 and Rs. 967 (Rs. 380, Rs. 226 and Rs. 508) respectively. 15

16 (Rupees in lacs, except Share Data) C. Item referred to in 9 above includes Loan given to Dabur International Ltd. and H & B Stores Ltd. Rs. Nil and Rs. 550 (Previous Year Rs. 0 and Rs. 2650). D. Item referred to in 13 above includes Guarantees & Collaterals to Dabur Egypt Ltd., Naturelle LLC, Asian Consumercare Pakistan (Pvt.) Ltd., Asian Consumercare Pvt. Ltd., Dermoviva Skin Essentials Inc., Dabur International Ltd., Dabur Lanka (Pvt.) Ltd. and Forum 1 Aviation Ltd Rs. 2168, Rs. 2114, Rs. Nil, Rs. Nil, Rs , Rs , Rs and Rs. 714 (Rs. 3372, Rs. Nil, Rs. Nil, Rs. Nil, Rs , Rs , Rs and Rs. 714) respectively. E. Figures in bracket relate to corresponding previous period for revenue items and preceding year end for balance sheet items. 2.3 AS 30, 31 & 32: a. Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not being receivable/payable in short term context), call for measurements at amortized value unless amortized value does not materially differ from unamortized value or assets /liabilities are held at floating rate of interest. Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on date, hereby described as amortized value, has been considered on the basis of appropriate Government Bond rate ruling as on which is 8.15 % as against 8.4% ruling as on Such benchmarking of effective rate is attributed to expected cognizance taken by government of the market risk, commodity price index, foreign exchange reserve, inflationary & deflationary impact on internal rates & cyclic / non cyclic fluctuations in fiscal & monetary system for the purpose of arriving at the rate of bond. b. Particulars on financial assets/liabilities where fair value/amortized cost differ from book balance. Particulars Holding Price (Rs. lac) Fair Value (Rs. lacs) Profit / (Loss) (Rs. lac) Head of Account Profit / (loss) being Accounted for A. FINANCIAL ASSETS a. Held for Trading Mutual Funds b. Available of Sale Government Bond as on as on as on as on other Income Opening General Reserve Investment Revaluation Reserve Investment Revaluation Reserve B. FINANCIAL INSTRUMENT a. Instrument hedging adverse currency fluctuation against Off Balance Exposure in Foreign Currency b. Instrument hedging adverse currency fluctuation against borrowing in foreign currency as on as on as on as on Finance Cost Finance Cost Finance Cost Finance Cost Particulars Original Amount Discounted Value Re-Instated Discounted Value (Rs. lacs) Profit / (Loss) Head of Account Profit / (Loss) being Accounted for C. FINANCIAL LIABILITIES Long term Borrowing as on as on Finance Cost Opening General Reserve 16

17 (Rupees in lacs, except Share Data) 2.4 Outcome of test of impairment undertaken for cash generating units concluded against creation of provision against impairment loss under AS During the period, the company has paid final 75% (previous year 65%) amounting to Rs (previous year Rs ) in respect of financial year after approval to the effect in the AGM dated The Board of Directors of the company has approved payment of interim 65% (previous period 55%) amounting to Rs (previous period Rs ) including tax applicable thereon. 2.7 During the period the company has allotted (previous period ) equity shares of Re 1/- each to the employees upon their exercise of option under Employee Stock Option Scheme which includes allotment of equity shares worth Rs. 4 lacs against capitalization of share premium without consideration money received in cash. Besides, options against number of equity shares have been cancelled during the period following lapse of option under relevant scheme (previous period ) equity shares of Re.1/- each are outstanding under Employees Stock Option Scheme as on 30th September, During the period company has invested Rs (previous period Rs ) in current investment During the period company has sold current investments amounting to Rs (previous period Rs ) Investment in jointly controlled entities (JCE) Information pursuant to AS-27 mandated by ASB : 1. Forum 1 Aviation Limited:- (a) Share of the company in assets, outside liability, net worth and income and expenses not being accounted for herein work out to Rs. 987 (previous year Rs. 1011), Rs. 376 (previous year Rs. 441), Rs.611 (previous year Rs. 114), Rs. 264 (previous period Rs. 177) & Rs. 238 (previous period Rs. 150) retrospectively as per un-audited accounts of JCE. (b) Stake of the company in terms of percentage of total subscribed and paid up capital of JCE is 14.28%. Said amount (Rs. 456) appears under non-current trade investment in balance sheet of the company. (c) Company s commitment towards revenue expenditure of the JCE amounting to Rs. 307 (previous period Rs. 223) has been charged to profit and loss account under the head general charges. (d) No income from said investment, unless realized in cash, is recognized in this standalone account. 2. Dabon International Pvt Ltd : Total investment of the company is Rs. 27 lacs which is 1 % of total stake. Since almost entire amount has already been provided for with no further obligation accruing to the company in respect of the joint venture arrangement, proportional consolidation of corresponding joint venture accounts has been done away with. 17

18 (Rupees in lacs, except Share Data) Note: 2.12 INFORMATION PURSUANT TO AS - 17 REVENUE External Sales Inter-segment sales Consumer Care Business Current Previous Current FOODS OTHERS UNALLOCATED Total Previous Current Previous Current Previous Current Previous 1,58,555 1,39,251 33,698 26,560 12,868 6,037 2,05,121 1,71,848 Total Revenue 1,58,555 1,39,251 33,698 26,560 12,868 6,037 2,05,121 1,71,848 RESULT Segment result Unallocated corporate expenses 41,933 34,512 4,841 4,944 1, ,262 9,760 Operating profit 41,933 34,512 4,841 4,944 1, (12,262) (9,760) 35,746 29,965 Interest expense 1, , Interest income Income Tax(Current + Deferred) 7,293 6,197 7,293 6,197 Profit from ordinary 41,933 34,512 4,841 4,944 1, (20,619) (16,751) 27,389 22,974 activities Extraordinary item Minority Interest Net profit 41,933 34,512 4,841 4,944 1, (20,619) (16,751) 27,389 22,974 OTHER INFORMATION 30/09/12 31/03/12 30/09/12 31/03/12 30/09/12 31/03/12 30/09/12 31/03/12 Segment assets 90,529 89,287 18,707 15,924 21,933 13,031 1,31,169 1,18,242 Unallocated corporate assets 1,57,761 1,60,442 1,57,761 1,60,442 Total assets 90,529 89,287 18,707 15,924 21,933 13,031 1,57,761 1,60,442 2,88,930 2,78,684 Segment liabilities 15,692 13,030 4,372 1,137 17,942 10,007 38,007 24,174 Unallocated corporate liabilities 1,10,295 1,29,566 1,10,294 1,29,566 Total liabilities 15,692 13,030 4,372 1,137 17,942 10,007 1,10,295 1,29,566 1,48,301 1,53,740 Capiltal Expenditure 1,733 10, ,035 3,507 2,988 14,239 48,008 12,262 39,725 9,760 Depreciation Non-cash expenses other than depreciation 1,239 2, ,146 1,137 2,715 2,309 1,146 3,873 2,715 18

19 (Rupees in lacs, except Share Data) 2.13 Information (to the extent applicable) pursuant to AS 19 issued by ICAI: - The future minimum lease payment under non-cancelable operating lease :- Particulars Not Later than 1 Years Later than 1 year Not Later than 5 Years later than 5 Years Building & Machine 12 (46) 6 (12) 0 (0) Car 72 (47) 88 (71) 0 (0) Lease rent recognized during the period Rs. 42 (previous period Rs. 32) 2.14 During the period, company has repaid Rs. Nil, Rs and Rs. 50 on account of Term Loan from bank, Short Term Loan from banks and Deferred Sales Tax respectively. Besides, it has also raised Rs against issue of Commercial Paper during the period, out of which Rs has been repaid during the period itself Exchange Loss works out to Rs (previous period Rs. 1567) and Exchange Gain of Rs (previous period Rs. 1675) which has been accounted for in Profit & Loss account as finance cost Employees related dues including post-separation benefits of directors have been accounted for on the basis of actuarial computation under project unit credit method, demographic assumptions thereon remain same as that of preceding year except for mortality rate within the age-group of 31 years to 44 years and expected return on planned assets considered at 14% and 9.25% as against respective assumptions at 13% and 9% in preceding financial year Calculation of EPS as per AS-20: Particulars Apr to Sep Apr to Sep Profit after Tax (before and after adjustment of extraordinary items) 27,389 22,974 Weighted average no. of shares outstanding Basic Diluted Earnings per share (of face value of Re 1/-) Basic Diluted (Note: Profit figures are in Rs. Lacs) 2.18 All figures have been rounded off to nearest Rs. Lacs unless stated otherwise Quarter-I figures appearing in condensed Profit & Loss Account in schedule A are not based on audited figures Figures of earlier period/year have been rearranged in terms of current period grouping as and when necessary. For Dabur India Limited As per our report of even date attached Dr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: E A.K. JAIN, Senior G.M.(Finance) Cum Company Secretary ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No:

20 Consolidated Financial Statements AUDITORS REPORT To the Board of Directors, Dabur India Limited, We have audited the attached condensed consolidated balance sheet of Dabur India Limited group, as at 30th September 2012 and also the condensed consolidated statement of profit and loss and the consolidated statement of cash flow for the half year ended on that date annexed thereto. These financial statements are the responsibility of the Dabur India Ltd. s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statement of one Joint Venture Entity, whose financial statements reflect total assets of Rs.986 lacs as at 30th September, 2012, the total profit of Rs.25 lacs and cash outflows amounting to Rs.7 lacs for the half year then ended. Financial statements and other financial information of the subsidiary have been audited by other auditors, whose reports have been furnished to us, and our opinion is based solely on the report of other auditors. Accounts of the joint venture have been consolidated on the basis of un-audited accounts certified by the management. We report that the condensed consolidated financial statements have been prepared by the Dabur India Ltd. s management in accordance with the requirements of AS-21 on consolidated financial statement and AS 27 on Financial reporting of interest in Joint Ventures and AS-25 on Interim Financial reporting issued by the Institute of Chartered Accountants of India. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial information of the components, and to the best of our information and according to the explanations given to us, we are of the opinion that the attached condensed consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: a) In the case of the condensed consolidated balance sheet, of the state of affairs of Dabur India Ltd. group as at 30th September, b) In the case of the condensed consolidated statement of profit and loss, of the profit of Dabur India Ltd. group for the half year ended on that date; and c) In the case of the consolidated statement of cash flow, of the cash flows of Dabur India Ltd. group for the half year ended on that date. For G BASU & CO Chartered Accountants Firm Registration No E ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No

21 I II CONDENSED CONSOLIDATED BALANCE SHEET as at 30th September 2012 Particulars As at As at EQUITY AND LIABILITIES 1. Share holder s Funds a) Share Capital 17,429 17,421 b) Reserves and Surplus 1,72,600 1,54, Minority Interest Non-current liabilities a) Long Term borrowings 53,176 68,302 b) Deferred Tax Liabilities (Net) 3,208 2,740 c) Other long term liabilities d) Long-term provisions 62,527 57, Current Liabilities a) Short-term borrowings 40,039 34,091 b) Trade payables 31,651 25,808 c) Other current liabilities 69,835 77,127 d) Short-term provisions 27,738 24,149 Total 4,78,866 4,62,231 ASSETS 1. Non-current assets a) Fixed Assets i) Tangible assets 87,351 84,225 ii) Intangible assets 79,713 79,898 iii) Capital work-in-progress 4,422 2,676 b) Non-current investments 9,139 8,928 c) Long-term loans and advances 40,983 37,269 d) Other non-current assets 9,070 10, Current assets a) Current investment 36,844 39,324 b) Inventories 74,432 82,392 c) Trade receivables 42,579 46,168 d) Cash and cash equivalents 59,686 41,842 e) Short-term loans and advances 28,378 26,096 f) Other current assets 6,269 3,221 Total 4,78,866 4,62,231 (Rs. in Lacs) Sep Mar Accounting Policies and Notes to Accounts (A) For Dabur India Limited As per our report of even date attached Dr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: E A.K. JAIN, Senior G.M.(Finance) Cum Company Secretary ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No:

22 Condensed Consolidated Statement of Profit & Loss Account for the six months ended 30th September 2012 (Rs. in Lacs) DESCRIPTION For the period ended For the period ended Sep Sep I Revenue from operations 2,99,922 2,47,700 II Other Income 4,675 2,861 III Total Revenue (I +II) 3,04,597 2,50,561 IV Expenses Cost of materials consumed 1,17,675 1,10,473 Purchase of stock in trade 26,931 23,126 Changes in inventories of FG, WIP & Stock in Trade Finished Goods 861 (7,192) Work in Progress Stock in trade 2,877 0 Employee benefits expenses 22,738 18,925 Finance cost 3,614 2,983 Depreciation & Amortisation Expenses 5,372 5,006 Other Expenses 80,256 59,266 Total Expense 2,60,390 2,12,891 (V) Profit before exceptional and extraordinary items and tax (III - IV) 44,207 37,670 (VI) Exceptional Items (466) 0 (VII) Profit before extraordinary items and tax (V - VI) 43,741 37,670 (VIII) Extraordinary Items 8 0 (IX) Profit before tax (VII - VIII) 43,749 37,670 (X) Tax expense (1) Current tax 7,933 6,961 (2) Deferred Tax (XI) Profit/(Loss) for the year from continuing operations (IX - X) 35,330 30,174 (XII) Minority Interest (XIII) Profit after Minority Interest 35,177 30,157 (XIV) Earnings per equity share ( before Extraordinary items) (1) Basic (2) Diluted (XV) Earnings per equity share ( After Extraordinary items) (1) Basic (2) Diluted Accounting Policies and Notes to Accounts (A) For Dabur India Limited As per our report of even date attached Dr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: E A.K. JAIN, Senior G.M.(Finance) Cum Company Secretary ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No:

23 STATEMENT OF CASH FLOW (Pursuant to AS-3) Indirect Method A. Cash Flow From Operating Activities Net Profit Before Tax, Exceptional and Extraordinary Items 44,207 37,670 Add: Depreciation 4,060 3,289 Loss on Sale of Fixed Assets Fixed Assets Discarded/Written Down 7 - Transaltion Reserve (4,643) - Miscellaneous Exp. Written off 1,309 1,686 Interest 3,614 2,983 Unrealised Loss on Financial Instruments Amortisation Cost (136) - Unrealised Loss / (Gain) In Foreign Exchange (266) 4,054 (5,556) 2,467 48,261 40,137 Less: Interest Received 4,045 2,476 Profit on Sale of Investment Profit on Sale of Assets 6 4, ,824 Operating Profit Before Working Capital Changes 43,727 37,313 Working Capital Changes Increase/(Decrease)in Inventories (7,960) 6,100 Increase/(Decrease) in Trade Receivables (3,591) 8,024 Increase/(Decrease) in Other Current Assets 5,330 - Decrease/(Increase) in Trade Payables And Other Payables 4,307 10,114 Increase/(Decrease) in Working Capital (1,914) 24,238 Cash Generated From Operating Activities 45,641 13,075 Tax Paid 13,323 13,323 7,059 7,059 Cash Used(-)/(+)Generated For Operating Activities (A) 32,318 6,016 B. Cash Flow From Investing Activities (Rs. in Lacs) Particulars For the period ended For the period ended Sep Sep Acquisition of Fixed Assets (9,312) (11,308) Sale of Fixed Assets Purchases of Investment (2,12,345) (1,53,501) Interest Received 4,045 2,476 Proceed of Sale of Investments 2,15,234 1,75,791 Repayment (-)/Proceeds(+) from Loan to Subsidiaries - - Cash Used(-)/(+) Generated for Investing Activities (B) (1,924) 14,120 23

24 STATEMENT OF CASH FLOW (Contd..) (Pursuant to AS-3) Indirect Method (Rs. in Lacs) Particulars For the period ended For the period ended Sep Sep C. Cash Flow From Financing Activities Proceeds From Share Capital & Premium 4 6 Repayment(-)/Proceeds (+) of Long Term Secured Liabilities 298 3,036 Repayment(-)/Proceeds(+) from Short Term Loans 5,948 (259) Repayment(-)/Proceeds(+) from other Unsecured Loans - (611) Payment of Dividend (13,066) (11,293) Corporate Tax on Dividend (2,120) (1,837) Interest Paid (3,614) (2,999) Cash Used(-)/+(Generated) In Financing Activities (C) (12,550) (13,957) Net Increase(+)/Decrease (-) In Cash And Cash Equivalents (A+B+C) 17,844 6,179 Cash And Cash Equivalents Opening Balance 41,842 27,242 Cash And Cash Equivalents Closing Balance 59,686 33,421 Cash And Cash Equivalents Balances With Banks 57,224 32,976 Cheques / Drafts In Hand Cash-In-Hand 1, Unrealized Gain/(Loss) On Foreign Exchange For Dabur India Limited As per our report of even date attached Dr. Anand C. Burman, Chairman for G.BASU & CO. P.D. Narang, Whole-time Director Chartered Accountants Sunil Duggal, Whole-time Director Firm Regn No: E A.K. JAIN, Senior G.M.(Finance) Cum Company Secretary ANIL KUMAR Place: New Delhi Partner Date: 26th October, 2012 Membership No:

25 SCHEDULE A (Rs. in lacs, except Share Data) Selected Explanatory Notes 1. ACCOUNTING POLICIES 1.1 Accounting convention: The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian GAAP. Accounts and disclosure thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules, other pronouncements of ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable. Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue, expenses and contingent liability pertaining to year/period, the financial statements relate to. Actual result could differ from such estimates. Any revision in accounting estimate is recognized prospectively from current year/period and material revision, including its impact on financial statement, is reported in notes to accounts in the year/period of incorporation of revision. 1.2 Body Corporate under Consolidation The Consolidated Financial Statement relates to:- Dabur India Limited (the parent company) H&B Stores Limited (a wholly owned subsidiary company incorporated in India) Dabur International Ltd., (a wholly owned subsidiary body corporate incorporated in Isle of MAN) Dabur (UK) Ltd. (a wholly owned subsidiary body corporate incorporated in British Virgin Island, 100% stake wherein is held by Dabur International Ltd.) Dabur Nepal Pvt. Ltd. (a subsidiary body corporate incorporated in Nepal, 97.5% stake wherein is held by Dabur International Ltd.) Dabur Egypt Ltd. (a wholly owned subsidiary body corporate incorporated in Egypt, 76% & 24% of stake wherein are held by Dabur (U.K.)Ltd. and Dabur International Ltd. respectively) Asian Consumercare Pvt. Ltd. (a subsidiary body corporate incorporated in Bangladesh, 76% stake wherein is held by Dabur International Ltd.) African Consumercare Ltd (a wholly owned subsidiary body corporate incorporated in Nigeria, 90% stake wherein is held by Dabur International Ltd & 10% stake held by Dabur (UK) Ltd ) Asian Consumercare Pakistan (Pvt.) Ltd (a wholly owned subsidiary body corporate incorporated in Pakistan, 99.99% stake where in is held by Dabur International Ltd) Naturelle LLC (a subsidiary body corporate incorporated in Emirate of RAS AI Khaimah, 100% stake wherein is held by Dabur International Ltd) Dabur Egypt Trading Ltd. (a wholly owned subsidiary body corporate, incorporated in Egypt, 99% & 1% of stake wherein are held by Dabur International Ltd. and Dabur Egypt Ltd. respectively) Dermoviva Skin Essentials INC (a wholly owned subsidiary body corporate incorporated in USA, 97.79% and 2.21% stakes wherein are held by Dabur International Ltd & Dabur India Ltd respectively Namaste Laboratories LLC (a wholly owned subsidiary body corporate, incorporated in USA, 100% right wherein is exercised by Dermoviva Skin Essentials INC) Urban laboratories International LLC (a wholly owned subsidiary body corporate incorporated in USA, 100% right wherein is 25

26 (Rupees in lacs, except Share Data) exercised by Namaste Laboratories LLC) Healing Hair Laboratories International LLC (a wholly owned body corporate incorporated in USA, 100% rights wherein is exercised by Namaste Laboratories LLC) Namaste cosmetics Ltd. (a wholly owned body corporate incorporated in Brazil, 100% rights wherein is exercised by Namaste Laboratories LLC) Two wholly owned overseas subsidiary body corporates incorporated in Turkey named Hobi Kozmetik and RA Pazarlama, 100% stake in each is held by Dabur International Ltd Dabur Lanka (Pvt) Ltd (a wholly owned subsidiary body corporate incorporated in Sri Lanka 100% stake wherein is held by Dabur International Ltd.) In addition to the above, proportionately consolidated herein is the accounts of Forum 1 Aviation Ltd.( a domestic corporate entity jointly controlled by parent company with others, stake of parent company being 14.28% therein) on the basis of un-audited results Significant Accounting Policies a) Accounting policies and principles of consolidation followed herein remain in terms of same applied in consolidated financial statements for the year ended 31st March 2012 except for treatment of deferred tax which has been calculated on estimated basis. b) Preparation of CFS including disclosures made therefore and condensation of Balance Sheet and Profit and Loss Account have been made in terms of requirement of AS 25 mandated by ASB. 2. NOTES TO ACCOUNTS 2.1. All amounts in the financial statements are rounded off to nearest Rupees Lacs, except for those specifically stated otherwise Contingent Liabilities : a) Claims against the company not acknowledged as debts: i) In respect of civil suits filed by third parties Rs. 992 (previous year Rs. 791) ii) In respect of claims by employees Rs. 51 (previous year Rs. 44) iii) In respect of excise duty disputes pending with various judicial authorities Rs. 7703(previous year Rs. 7611) iv) In respect of Sales Tax under appeal Rs (previous year Rs. 1234) v) In respect of Income tax under appeal Rs. 306 (previous year Rs. 386) b) Guarantees Given : In respect of Guarantees furnished by the company Rs (previous year Rs. 2867) c) Information pursuant to AS 29: Brief particulars of provisions on disputed liabilities provided for : 26

27 (Rupees in lacs, except Share Data) Nature of Liability Particular of dispute Opening Liability Provision made during Provision adjusted during the period Closing Provision Forum where the dispute is pending the period Sales Tax Classification of Laldant Manjan Filed review application with High Court Entry Tax Entry tax on car Appeal pending before D.C. Sales Tax Classification of hajmola Candy Appeal pending before S T Appellete Sales Tax Tax Paid Pending before High Court purchase Excise Capital Goods DC appeal removal Excise Hajmola Candy Tribunal Classification General Expense Product claim Management lodged by third party Income Tax Ex promoter USA Management Liability Total i) Resulting outflows against above liabilities pending before Sales Tax DC/Tribunal/High court/management, if mature, are expected to be in succeeding financial year. ii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution. d) Consideration money, towards acquisition of USA based entities,contingently payable and provided for include Rs representing expected amount payable by the group over a period of 3 years to their erstwhile promoters (entrusted with the charge of management of Namaste Laboratories LLC till date) subject to their achievement of year wise target as per earn-out agreement. Rs.2250 approximately has been paid/adjusted against year opening due during the period pursuant to fulfillment of first year s target by the management with corresponding withdrawal of requisite provision. Considering confidence of the group on the ability of erstwhile promoters to achieve targets laid down in reasonable terms, aforesaid provision has been retained in accounts within the meaning of AS 29. e) Commitments: Estimated Amount of contract remaining to be executed on Capital Account Rs (previous year Rs. 6467). 2.3 Related party disclosures ( Pursuant to AS -18 ) Enterprise where control exists: None Other related parties in transaction with the group : Associate - ACI Ltd., Bangladesh Joint Venture - Forum 1 Aviation Limited 27