auditors’ report on consolidated financial statement

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

We have examined the attached consolidated balance sheet Subject to Accounting Policy of the investments held by the
of Dabur India Limited and its subsidiaries (“the group”) as at parent Company and gradual amortization of advertisement
31st March, 2003 and the consolidated profit and loss account and publicity expenses of Dabur Foods Ltd. as against parent
and the consolidated cash flow statement for the year ended Company’s policy of charging the same in the year of
on that date attached thereto. incurrence thereby adding to profit and miscellaneous

These financial statements are the responsibility of Dabur expenditure by Rs.114 lacs each and impairment of fixed

India Limited’s management. Our responsibility is to express assets in terms of recommendations of Consultants (as relied
upon by us) with particular reference to parent Company only
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted impact of which is not readily ascertainable, in our opinion

auditing standards in India. These standards require that we the consolidated financial statements give a true and fair view
in conformity with the accounting principles generally accepted
plan and perform the audit to obtain reasonable assurance
whether the financial statements are prepared, in all material in India :

aspects, in accordance with an identified financial reporting i) in the case of the consolidated Balance Sheet, of the
framework and are free of material misstatements. An audit consolidated state of affair of Dabur India Ltd. and its
includes, examining on a test basis, evidence supporting the subsidiaries for the year ended on that date; and
amounts and disclosures in the financial statements. An audit ii) in the case of the consolidated Profit and Loss Account,
also includes assessing the accounting principles used and of the consolidated results of operations of Dabur India
significant estimates made by management, as well as
Ltd. and its subsidiaries for the year ended on that date;
evaluating the overall financial statements. We believe that and
our audit provides a reasonable basis for our opinion.
iii) in the case of the consolidated Cash Flow Statement, of
In the said Consolidated Financial Statements have been the consolidated cash flow of Dabur India Ltd. and its
incorporated accounts of three foreign body corporates audited
subsidiaries for the year ended on that date.
by other auditors as per the law of the countries in which they
are incorporated, and two body corporates incorporated in
India; one of them being audited by other auditor. Report on
the accounts of subsidiaries audited by other auditors as well
as that of us pertaining to the accounts of subsidiary For G. BASU & CO.

companies consolidated herein as received by us have been Chartered Accountants

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

herein is based on the consideration of audit reports on the New Delhi S. LAHIRI
individual financial statements. 16th May, 2003 Partner

80
Dabur India Limited (Consolidated)
balance sheet
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
as at 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

As at 31st As at 31st
March, 2003 March, 2002
Schedule (Rs. in Lacs) (Rs. in Lacs)
Sources of Funds :
Shareholders’ Funds :
A) Share capital A 2,857.50 2,855.94
B) Reserves and surplus B 38,802.10 36,711.08
Minority Interest B2 903.82 782.65
Loan Funds :
A) Secured loans C 8,300.90 10,074.26
B) Unsecured loans D 13,125.20 20,294.97
Total 63,989.52 70,718.90

Application of Funds :
Fixed Assets :
A) Gross block F 40,549.66 54,336.20
B) Less : Depreciation 14,846.85 17,260.72
C) Net block 25,702.81 37,075.48
Investments G 10,176.02 2,674.94
Current assets, loans and advances : H
A) Inventories 22,219.80 20,182.56
B) Sundry debtors 13,628.57 14,204.53
C) Cash & bank balances 4,229.56 3,567.06
D) Loans & advances 12,125.37 12,464.72
52,203.30 50,418.87

Less : Current liabilities and provisions EA

A) Liabilities 18,168.37 15,833.48
B) Provisions 5,950.28 2,245.07
24,118.65 18,078.55

Net current assets 28,084.65 32,340.32

Deferred tax liabilities (Net) EB (356.28) (1,990.51)
Miscellaneous expenditure IA 382.32 618.67
(To the extent not written off or adjusted)
Notes to accounts P

Total 63,989.52 70,718.90

As per our report of

even date attached
V. C. BURMAN P. D. NARANG P. N. VIJAY For G. BASU & CO.
Chairman Director Director Chartered Accountants
New Delhi ASHOK JAIN S. LAHIRI
16th May, 2003 Company Secretary Partner

81
Annu al Rep o r t 2002-03
 profit and loss account for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

For the year For the year

ended 31st ended 31st
March, 2003 March, 2002
Schedule (Rs. in Lacs) (Rs. in Lacs)
Income : J
Sales less returns 137,085.75 128,096.25
Other income 718.43 1,198.54
Total income 137,804.18 129,294.79
Expenditure :
Cost of materials K 57,756.71 56,296.17
Excise duty 7,350.21 6,062.47
Manufacturing expenses L 3,778.83 3,358.36
Payments to and provisions for employees M 10,382.58 9,389.81
Selling and administrative expenses N 42,065.81 39,191.53
Financial expenses O 2,612.61 3,331.66
Miscellaneous expenditure written off IB 290.68 566.71
Depreciation 2,931.03 2,867.93
Total expenditure 127,168.46 121,064.64
Balance being net profit 10,635.72 8,230.15
Balance brought forward 4,564.09 2,028.86
Provision for taxation of earlier years written back 5.64 96.12
Prior period expenses — -14.76
Transferred from debenture redemption reserve 250.00 250.00
15,455.45 10,590.37
Provision for taxation – Current 1,032.91 678.50
– Deferred 299.70 688.92
Provision for taxation for earlier year 38.99 36.87
Interim dividend 1,428.77 1,467.47
Interim dividend - minority 58.48 —
Proposed Dividend - final 2,571.75 —
Employees sharing of profit 2.67 3.80
Corporate tax on proposed dividend 327.90 145.60
Transferred to capital reserve 17.95 248.72
Transferred to general reserve 2,312.50 3,114.40
Transferred to legal reserve 1.33 —
Minority interest 630.64 508.37
Balance carried over to balance sheet 6,731.86 4,206.09
15,455.45 11,098.74
Earning per share (in Rs.)
Basic 3.17 2.33
Diluted 3.16 2.32
No. of shares
Basic 285,662,514 285,366,429
Diluted 286,177,354 286,001,092
Notes to accounts P

As per our report of

even date attached
V. C. BURMAN P. D. NARANG P. N. VIJAY For G. BASU & CO.
Chairman Director Director Chartered Accountants
New Delhi ASHOK JAIN S. LAHIRI
16th May, 2003 Company Secretary Partner

82
Dabur India Limited (Consolidated)
schedules annexed to and forming part of the balance sheet as at 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

As at 31-3-2003 As at 31-3-2002
(Rs. in Lacs) (Rs. in Lacs)
Schedule A - Share Capital
Authorised :
500000000 Equity shares of Re.1 each 5,000.00 5,000.00
(previous year 500000000 equity shares of Re. 1 each)
5,000.00 5,000.00
Issued and Subscribed :
285749934 Equity shares of Re.1 each fully called up 2,857.50 2,855.94
Minority interest — —
(previous year - 285593520 equity shares of Re. 1 each)
2,857.50 2,855.94
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 re-
serves to shareholders in the ratio of 4 equity shares for
every share held as on 1st December, 1993.
2. Pursuant to Section 94 of the Companies Act 1956, equity
shares of Rs. 10 were sub-divided in equity shares of Re. 1/-
each on 15th December, 2000 by way of issue of 10 shares
against each share formerly held by a shareholder.
3. 156414 Equity Shares of Re. 1 each were issued during the year
2002-03 under Employee Stock Option Scheme (previous
year 378690).
4. 526118 equity shares of Re. 1 each are outstanding under
Employee Stock Option Scheme as on 31st March, 2003
(previous year 644999 equity shares)

Schedule B - Reserves and Surplus

Capital reserve 1,547.15 1,475.19
Share premium account 5378.18 5,292.70
Employees housing reserve / fund 302.92 230.67
Capital redemption reserve 56.93 56.93
General reserve 23,946.96 24,806.38
(Net of debit against exchange fluctuation reserve Rs. 6.41; previous year Nil )
Legal reserve 20.08 —
Debenture redemption reserve 250.00 500.00
Investment allowance reserve 82.58 82.58
Investment deposit reserve 182.50 182.50
Profit and loss account 6,731.89 3,697.72
Employee stock option scheme outstanding 302.91 386.42
Total 38,802.10 36,711.08

Schedule B2 - Minority Interest

Share capital 161.57 161.57
Share premium 75.00 75.00
General reserve 36.62 37.71
Profit and loss 630.64 508.37
903.82 782.65

83
Annu al Rep o r t 2002-03
 schedules annexed to and forming part of the balance sheet as at 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

As at 31-3-2003 As at 31-3-2002
(Rs. in Lacs) (Rs. in Lacs)
Schedule C - Secured Loans
A. Debentures :
500000 - (Previous period 1500000)14.75% secured redeemable 500.00 1,000.00
non-convertible debentures of Rs.100 each as fully paid up and
redeemable at par in 1 equal annual (previous period 2) instal-
ments on 23rd July, 2003 (previous period 23rd July, 2002,
2003)
Secured by :
A) For debentures amounting to Rs. 1,250 lacs (in terms of
original issue)
1) By a mortgage by deposit of title deeds in respect
of all the Company’s immovable properties situated
at 22 , Site IV, Sahibabad, Distt.Ghaziabad. present
and future.
2) A first charge by way of hypothecation in respect of
all the Company’s movable plant & machinery spares
and stores, tools and accessories including all other
movables both present and future situated at 22,
Site IV Sahibabad, Distt. Ghaziabad.
Subject to :
1) Prior charges created and/or to be created in favour
of Exim Bank & IDBI for their term loans, the
Company’s bankers for co-acceptance of bills for
purchase of plant & machinery .
The mortgage and charges created as aforesaid shall
rank pari passu with the charges created /to be created
in favour of Industrial Finance Corporation of India Ltd.
B) For debentures amounting to Rs. 250 lacs (in terms of
original issue)
1) By a mortgage by deposit of title deeds in respect
of all the Company’s immovable properties situated
at Plot No. SP-C-162, MIA, Desula, Alwar, Rajasthan
and Plot No. 7, NEPZ, Noida, Ghaziabad both
present and future.
2) A first charge by way of hypothecation in respect of
all the Company’s movable plant & machinery spares
and stores, tools and accessories including all other
movables both present and future situated at Plot
No. SP-C-162, MIA, Desula, Alwar, Rajasthan and
Plot No. 7, NEPZ, Noida, Ghaziabad.
Subject to :
1) Prior charges created and/or to be created in favour
of the Company’s bankers on the stock of raw
materials, semi finished goods, consumables stores
and book debts and movables for securing
borrowings for working capital assistence in the
ordinary course of business.
B. Term Loans :
Housing Development Finance Corporation Limited 75.78 462.18
Secured by :
Hypothecation of land & building, plant & machinery installed
at the Company’s factory at Daburgram, Deoghar, Jharkhand.
Hongkong & Shanghai Bank Ltd. Egypt 22.65 43.33
Nepal SBI Bank Ltd. — 88.50
Deferred payment 209.14 289.42
PICUP under trade tax loan scheme 1,412.29 1,357.09
Short term loans - from banks 6,081.04 6,833.74
Secured banks and institutional loans are covered by first
charge on fixed assets, inventories, book debts - (present and
future) and guarantee from HSBC, New Delhi
8,300.90 10,074.26

84
Dabur India Limited (Consolidated)
schedules annexed to and forming part of the balance sheet as at 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

As at 31-3-2003 As at 31-3-2002
(Rs. in Lacs) (Rs. in Lacs)
Schedule D - Unsecured Loans
Deposits :
Directors 48.13 —
Companies 3579.98 4253.75
Security deposit from dealers and others 394.29 456.78
Term loan - from banks 1,212.94 1,064.15
Book overdraft of current account with banks 3,027.68 3,092.45
Commercial papers 1,000.00 7,500.00
External commercial borrowings 3,862.18 3,927.83
13,125.20 20,294.97
Schedule EA - Current Liabilities and Provisions
A. Current liabilities :
Acceptance 7,247.53 5,468.08
Amount due to SSI Units (goods) 867.96 1,154.09
Creditors for goods 2,895.95 2,695.47
Creditors for expenses and other liabilities 6,475.22 5,629.81
Advances from customers 447.53 658.83
Interest accrued but not due on loans 120.96 59.41
Deposits - others 33.60 68.52
Investor education and protection fund to be credited by :
– Unpaid dividend 53.27 57.72
– Unpaid matured public deposit 19.69 35.71
– Interest accrued on public deposit 6.66 5.84
Total A 18,168.37 15,833.48
B. Provisions :
For dividend (proposed) - final 2,571.75 —
For corporate tax on proposed dividend - final 327.90 —
For leave salary 217.24 222.49
For housing, bonus, gratuity & other welfares 236.60 98.33
For taxation 2,596.79 1,924.25
Total B 5,950.28 2,245.07
Total A+B 24,118.65 18,078.55
Schedule EB - Deferred Tax Liabilities (Net)
Deferred tax liability :
Depreciation 352.51 1,912.11
Technical knowhow fees 37.90 —
Strategic consultancy expenses — 390.41 87.97 2,000.08
Less : Deferred tax assets :
VRS payment 6.57 9.57
Others disallowance u/s 43 B 27.56 34.13 — 9.57
356.28 1,990.51

Schedule F - Fixed Assets (Rs. in Lacs)

Gross block Depreciation Net block
Name of Asset As on Additions Adjustment As on As on For the year Adjustment As on As on As on
31.03.02 2002-2003 2002-2003 31.03.03 31.03.02 2002-2003 2002-2003 31.03.03 31.03.03 31.03.02
Freehold land 1,126.36 37.85 — 1,164.21 — — — — 1,164.21 1,126.36
Leasehold land 601.37 — 62.64 538.73 24.72 4.32 4.68 24.36 514.37 576.65
Building, roads & culvert 13,080.01 758.35 2,585.87 11,252.49 3,151.45 500.22 502.96 3,148.71 8,103.78 9,928.56
Plant & machinery 21,685.21 1,766.82 5,582.64 17,869.39 9,573.51 1,575.56 2,971.47 8,177.60 9,691.79 12,111.70
Vehicles 1,177.01 257.83 494.50 940.34 612.89 156.56 338.55 430.90 509.44 564.11
Furniture & off. equipment 4,216.17 355.30 1,031.21 3,540.26 1,721.04 344.26 575.73 1,489.57 2,050.69 2,495.13
Computers 3,104.61 372.08 1,164.14 2,312.55 2,079.71 302.95 951.51 1,431.15 881.40 1,024.89
Patents 330.00 — — 330.00 97.40 47.16 — 144.56 185.44 232.60
Live stock 0.22 — — 0.22 — — — — 0.22 0.22
Capital work-in-progress 1,635.41 2,600.19 1,634.13 2,601.47 — — — — 2,601.47 1,635.41
46,956.37 6,148.42 12,555.13 40,549.66 17,260.72 2,931.03 5,344.90 14,846.85 25,702.81 29,695.63

85
Annu al Rep o r t 2002-03
 schedules annexed to and forming part of the balance sheet as at 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

No. of shares/ As at 31-3-2003 As at 31-3-2002

units fully (Rs. in Lacs) (Rs. in Lacs)
paid up
Schedule G - Investments
A. Quoted - Other than trade
1. Alliance 95 - dividend 490,918 200.00 200.00
2. ICICI - Prudential Balance Fund - dividend 1,879,699 200.00 200.00
3. Birla Balance - dividend 1,793,722 200.00 200.00
4. Unit Trust of India (Unit 64 Scheme) 464,286 65.00 65.00
5. GCFC Grindlays Cash Fund - Growth Option 268414.33 30.22 —
B. Unquoted
I) Trade Investments
1. Sanat Products Ltd. 50,000 105.00 105.00
2. Dabon International Private Limited 13,500,000 1,350.00 1,350.00
II) Trade investments in subsidiary companies
1. Dabur Oncology PLC. 111,400,000 7,652.02 —
2. Dabur Pharma Ltd. (subscribed during the year) 499,400 4.99 —
III) Other than trade investments
1. Commerce Centre Co-op. Hsg. Soc. Ltd. 15 0.02 0.02
2. Capexil (Agencies) Limited 3 0.01 0.01
3. Dabur Employees Consumers Co-op. Stores Ltd. 250 0.03 0.03
4. Dabur Employees Co-op. Credit Society Ltd. 650 0.07 0.07
5. Co-operative Stores Limited, Super Bazar 500 0.05 0.05
6. Vertex Broadcasting Private Limited 1,000 0.10 0.10
7. Himal Laboratories Pvt. Ltd. (sold during the year) 10,000 — 1.00
8. Green Valley Products Pvt. Ltd. 65,000 6.50 —
(purchased during the year)
9. Consortium Consumercare Pvt. Ltd.
(subscribed during the year) 11,000 1.10 —
10. 5% Special Nepal Govt Bonds 2063
(bonds sold during the year) 3 1.38 69.65
11. 5% Special Nepal Govt Bonds 2064 5 336.29 —
(5 bonds purchased during the year)
12. 12.50% Maharashtra State Dev. Loan 2004 3 3.24 3.24
13. VIII Series National Saving Certificates 1 0.20 0.20
14. Vertex Broadcasting Pvt. Ltd.-preference shares 1,187,500 — 80.18
(sold during the year)
15. Vertex Bhopal Broadcasting P. Ltd.-preference shares 100 — 0.01
(sold during the year)
16. Vertex Deccan Broadcasting P. Ltd.-preference shares 100 — 0.01
(sold during the year)
17. Dabur Securities Pvt. Ltd. 300,020 30.00 30.00
(10 equity shares purchased during the year)
Less : Provision for diminution (10.18) (3.09)
C. Share application money pending allotment — 373.46
Total 10,176.02 2,674.94

Schedule H - Current Assets, Loans and Advances

A. Current assets :
Stock-in-trade
– Raw materials 7,343.39 5,663.82
– Packing materials, stores and spares 2,783.99 2,115.95
– Recoverable value from impaired fixed assets 208.71 —
– Stock in process 2,880.28 2,406.57
– Finished goods 9,003.43 9,996.22
22,219.80 20,182.56
Sundry debtors (unsecured) :
– Debts outstanding for a period exceeding six months :
Considered good 519.56 878.83
Considered doubtful 137.97 —
657.53 878.83
Less : Provision for doubtful debts 137.97 —
519.56 878.83
– Other debts (considered good) 13,109.01 13,325.70
13,628.57 14,204.53

86
Dabur India Limited (Consolidated)
schedules annexed to and forming part of the balance sheet as at 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

As at 31-3-2003 As at 31-3-2002
(Rs. in Lacs) (Rs. in Lacs)

Schedule H - Current Assets, Loans & Advances (Contd.)

Cash and bank balances :
– Cash in hand at head office and other offices 34.00 34.17
– Balance with banks :
• In current accounts (includes Rs. 53.27 in unpaid 3,690.69 2,107.77
dividend account; previous year Rs. 57.72)
• In fixed deposit accounts : 501.05 1,349.55
(Pledged with govt. authorities Rs. 10; previous year Rs. 10)
– Balance with non-scheduled banks
– Postal savings bank accounts 0.95 0.95
(deposited with excise authority)
– Remittance-in-transit & cheques-in-hand 2.86 74.62
40,077.93 37,954.15
B. Loans and advances
(unsecured, considered good, unless otherwise stated)
Loans & advances to subsidiaries
Loans & advances to others (including secured advances 880.04 601.06
Rs. Nil; previous year Rs. 199.47)
Security deposit with various authorities (including deposit 4,585.88 3,908.25
with govt. authorities Rs. 1,107.49; previous year Rs. 1,048.79)
Advance payment of tax 2,469.90 2,240.74
Advances to suppliers 992.33 2,105.34
Advances to employees 732.20 1,265.81
Balance with excise authorities 666.83 822.11
Other advances 1,798.17 1,521.41
12,125.37 12,464.72
Total (A+B) 52,203.30 50,418.87

Schedule IA - Miscellaneous Expenditure

(to the extent not written off or adjusted)
Share issue expenses 37.81 75.64
Less : Amortised during the year 37.81 — 37.83 37.81
Opening balance 8.42 14.33
Technical knowhow fees paid 112.50 —
120.92 14.33
Less : Amortised during the year 12.82 108.11 5.91 8.42
Strategic management consultancy expenses 92.86 339.26
Less : Amortised during the year 92.86 — 246.40 92.86
Deferred employee compensation under ESOP :
Opening balance 217.26 321.03
Addition during the year 96.60 184.01
Less : Cancelled during the year 94.63 —
219.23 505.04
Less : Amortised during the year 82.32 136.91 287.78 217.26
Deferred Advertisement & publicity 229.31 343.96
Less : Amortised during the year 114.65 114.66 114.65 229.31
Preliminary expenses 33.01 40.89
Less : Amortised during the year 10.37 22.64 7.88 33.01
382.32 618.67

87
Annu al Rep o r t 2002-03
 schedules annexed to and forming part of the profit and loss account for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

For the year For the year

ended 31-3-2003 ended 31-3-2002
(Rs. in Lacs) (Rs. in Lacs)
Schedule J - Sales and Other Income
A. Sales :
Domestic sales less returns 125,439.33 116,621.83
Export sales 11,646.42 11,474.42
137,085.75 128,096.25
B. Other income :
Export subsidy 102.12 147.55
Rent realised 19.44 88.50
(Tax deducted at source Rs.1.87; previous year Rs. 12.97)
Sale of scrap 172.61 150.79
Other dividend – (other than trade investment) 2.75 17.17
– Trade investment — —
– Other investment 0.38 —
Royalty received 106.20 114.97
Miscellaneous receipts 279.88 376.37
Profit on sale of fixed assets 46.31 303.19
(Net of loss of Rs. 16.74; previous year Rs. 18.34)
(Including capital profit of Rs. 17.95; previous year Rs. 248.72)
Profit on sale of investments (11.26) —
718.43 1,198.54

Schedule K - Cost of Materials

Raw Materials consumed :
i) Opening stock 5,550.93 5,383.74
ii) Add : Purchases 24,439.88 24,090.13
29,990.81 29,473.87
iii) Less : Closing stock 7,343.39 22,647.42 5,550.93 23,922.94
Packing materials consumed :
i) Opening stock 1,473.55 1,444.38
ii) Add : Purchases 10,653.96 9,531.89
12,127.51 10,976.27
iii) Less : Closing stock 2,250.95 9,876.56 1,473.55 9,502.72
Purchase of finished products 24,725.65 24,711.19
Adjustment of stocks-in-process and finished goods
Opening stock :
Stock-in-process 2,406.57 2,396.72
Finished products 9,984.28 8,153.45
12,390.85 10,550.17
Closing stock :
Stock-in-process 2,880.30 2,406.57
Finished products 9,003.47 9,984.28
11,883.77 12,390.85
Increase(-)/Decrease in stock-in-process and finished goods 507.08 (1,840.68)
57,756.71 56,296.17

Schedule L - Manufacturing and Operating Expenses

Power and fuel 2,394.80 2,239.09
Stores & spares consumed 493.87 418.69
Repairs & maintenance :
– Building 142.44 181.62
– Plant & machinery 246.49 222.02
– Others 332.21 220.68
Processing charges 169.02 76.26
3,778.83 3,358.36

88
Dabur India Limited (Consolidated)
schedules annexed to and forming part of the profit and loss account for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

For the year For the year

ended 31-3-2003 ended 31-3-2002
(Rs. in Lacs) (Rs. in Lacs)

Schedule M - Payments to & Provisions for Employees

Salaries, wages and bonus 6,205.55 5,427.40
Contribution to provident and other funds 1,149.58 883.57
Workmen and staff welfare 2,581.40 2,366.23
Directors’ remuneration 446.05 712.61
(Including perquisites Rs. 155.24; previous year Rs. 364.12)
10,382.58 9,389.81

Schedule N - Selling and Administrative Expenses

Rent 585.75 560.22
Rates and taxes 153.94 106.46
Insurance 229.40 237.44
Sales tax 8,597.35 8,057.50
Freight and forwarding charges 3,626.74 2,872.73
Cartage and coolie 22.72 68.26
Commission, discount and rebate 2,584.28 2,774.13
Advertising and publicity 16,980.40 16,350.82
Travel & conveyance 2,676.26 2,510.30
Legal & professional 677.08 588.05
Telephone, fax expenses 448.18 546.52
Security expenses 117.29 106.31
General expenses 2,961.43 2,533.66
Directors’ fees 1.18 1.76
Auditors’ remuneration 24.90 24.19
Donation 183.07 65.69
Contribution for scientific research expenses 1,750.00 1,750.00
Bad debts 445.84 32.85
Loss on sale of investments — 4.64
42,065.82 39,191.53

Schedule O - Financial Expenses

Interest paid on :
– Fixed period loan 1,127.45 1,751.96
– Others 976.03 2,103.48 1,015.92 2,767.88
(Net of int. received Rs. 159.64; previous year Rs. 276.41)
Bank charges 509.13 563.78
2,612.61 3,331.66

Schedule IB - Miscellaneous Expenditure Written Off

Share issue expenses 37.81 37.83
Technical knowhow fees paid 12.82 5.91
Strategic management consultancy expenses 92.86 246.40
Deferred employee compensation under ESOP 82.32 287.78
Less : Transferred to Directors’ remuneration 60.15 22.17 133.74 154.04
Deferred advertisement & publicity 114.65 114.65
Preliminary expenses 10.37 7.88
Total 290.68 566.71

89
Annu al Rep o r t 2002-03
 schedules annexed to and forming part of the accounts for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Schedule P - Significant Accounting Policies and Notes to the Consolidated Financial Statements
(Amount Rs. Lacs)
A. Accounting Policies :
Significant accounting policies are summarized below :
1. Principles of Consolidation :
The Consolidated Financial Statement relates to Dabur India Ltd. (the parent company) and Dabur Foods Ltd., Dabur Finance
Ltd. (both wholly owned subsidiary companies incorporated in India), Dabur Overseas Ltd. (a wholly owned subsidiary company
incorporated in British Virgin Islands), Dabur Nepal Private Ltd. (a subsidiary body corporate incorporated in Nepal, the extent of
holding of parent company being 79.96%), and Dabur Egypt Ltd. (a subsidiary body corporate incorporated in Egypt, 76% of stake
wherein is held by Dabur Overseas Ltd.; one of the wholly owned foreign subsidiaries of parent company).
The consolidated financial statements have been prepared on the basis of AS-21, issued by ICAI read with the following basic
assumptions :
i. The financial statements of the parent company and its subsidiary companies have been combined on a line-by-line basis
by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group
balances and intra-group transactions and resulting in unrealized profits or losses.
Investments of parent company in subsidiaries are eliminated against respective proportionate stake of parent company
therein on the respective dates when such investments were made by way of crediting the difference of the two in terms
of aggregate in capital reserve except for Dabur Nepal Private Ltd. where the same is adjusted against share premium
account.
In respect of foreign subsidiaries, rise in the value of stake of parent company in terms of reported currency upto the date
of commercial production (i.e. the date, their assets were due to capitalization) on account of exchange fluctuation has been
credited to capital reserve. Subsequent generation of reserve other than that of the nature of capital reserve including gain/
loss arising on account of translating the transactions of the year, year-end assets and liabilities of the foreign subsidiaries
for the purpose of consolidating with parent company’s assets at exchange rates ruling on year-end-date has been recognized
as reserve specifically earmarked for the purpose.
ii. The consolidated financial statements are prepared by adopting uniform accounting policies for like transactions and other
events in similar circumstances and are presented to the extent possible, in the same manner as the parent company’s
separate financial statements unless stated otherwise.
Recognition of income, classification of assets, provisioning thereon pertaining to accounts of Dabur Finance Ltd. remain as
per Income Recognition and Assets Classification Norms issued by Reserve Bank of India which are not necessarily
consistent with the accounting policies of the parent company.
iii. Minority interest, where lying, in the net income of consolidated subsidiaries have been adjusted against the income of the
group so as to arrive at net income attributable to the parent company. Minority interest consisting of equity attributable to
them on the date such investments were made by the parent company and movement in their equity since the date of parent
subsidiary relationship has been disclosed in the consolidated financial statement separately from liability and equity of
shareholders of parent company.
iv. Current assets/ liabilities of overseas subsidiaries have been translated in reporting currency in terms of exchange rates
prevailing on year-end date. Income and expenses of overseas subsidiaries have been translated at average rate.
Fixed assets of the overseas subsidiaries have been accounted for in terms of the exchange rate prevailing at the point of
commencement of production of relevant subsidiaries pertaining to assets appearing since that point of time and at purchase
price (including cost of installation) for remaining fixed assets.
v. Impact of exchange fluctuation, whether revenue or capital in nature appearing in the accounts of the foreign subsidiaries
are directly charged to revenue in Consolidated Financial Statement.
2. Accounting Convention :
The accounts have been prepared in accordance with the historical cost convention modified by revaluation and impairment of
certain fixed assets.
a. Fixed Assets and Depreciation :
• Fixed assets are stated at cost (and at recoverable value for impaired assets of Dabur India Ltd. only as per AS 28
issued by ICAI), except for revalued assets.
• Cost includes inward freight, duties, and taxes and expenses incidental to acquisition and installation.
• In respect of revalued assets the difference between the written down value of the assets as on the date of revaluation
and the revalued amount have been transferred to Capital Reserve.

90
Dabur India Limited (Consolidated)
schedules annexed to and forming part of the accounts for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

• In respect of assets impaired as on 31.03.2003, difference between written down value and impaired value of
corresponding assets has been adjusted against opening balance of revenue reserve. However, further impairment
losses will be provided against revenue of the year.
• As regards fixed assets acquired out of loan taken in foreign currencies, loss or gain on such loans at the year-end
is adjusted to the value of such fixed assets.
• Interest on the loan utilized for acquisition of Fixed Assets are capitalized for the new projects up to the date of
commencement of commercial production of respective projects.
• In respect of parent company and Dabur Foods Limited, depreciation on fixed assets has been provided on written
down value method rates specified in Schedule XIV of the Companies Act, except for Baddi, Katni, Kalyani, 5/1
Sahibabad unit and Corporate Office of parent company, Dabur Foods Limited, Dabur Finance Ltd. and Dabur Egypt
Ltd. in Sahibabad, where depreciation have been provided on straight line method at the rates specified in aforesaid
Schedule.
The parent company has identified impairable assets at the year end in terms of paras - 5 to 13 of AS-28 issued by
ICAI and arrived at impairment loss therein being the difference between the book value and recoverable value of
relevant assets. Impairment loss, so arrived at, has been adjusted against opening general reserve as per transitional
provision laid down in para –124 of AS-28.
• Depreciation on differential amounts of fixed assets arising out of exchange loss or gain on foreign currency loan are
adjusted over the remaining life of the concerned fixed assets.
• On leased assets, depreciation has been provided on the amount equal to annual lease charges as per method
recommended by ICAI under which cost of the leased assets (net of Margin, if any) is depreciated over primary period
of lease applying interest rate implicit in the lease to the outstanding investment in lease to calculate finance earnings
for the period and the difference between the lease rental and finance earnings is charged as depreciation.
b. Investments :
Investments being long term in nature (except for Dabon International Ltd, Dabur Oncology Plc and Dabur Pharma Ltd. which
are current in nature) are held at cost. Provision will be made as and when deemed necessary under AS-13 issued by ICAI.
Investment of Dabur Finance Ltd. in unquoted equity shares held as current investments and are carried at cost net of
provision for diminution in the value of current investment.
c. Deferred Entitlement on LTC :
In terms of the opinion of the Expert Advisory Committee of the ICAI, the parent company has provided liability accruing
on account of deferred entitlement towards LTC in the period in which the employees concerned render their services.
d. Inventories :
Stocks are valued at lower of cost or net realizable value. Basis of determination of cost remain as follows :
• Raw materials, Packing materials, stores & Spares : On FIFO Basis
• Work-in-process : At cost of input plus overhead upto the stage of completion.
• Finished goods : At cost of input plus appropriate Overhead.
• Securities : At cost
e. Research and Development Expenses :
Contributions towards scientific research expenses are charged to the Profit & Loss Account in the year in which the
contribution is made.
f. Retirement Benefits :
Liabilities in respect of retirement benefits to employees are provided for in the books of Dabur India Ltd. and Dabur Foods
Ltd. for as follows :
• Leave salary of employees of the company on the basis of actuarial valuation.
• Gratuity liability on the basis of payment advice from Life Insurance Corporation of India from whom the company’s
gratuity trust has taken the Group Gratuity Insurance Policy.
• Liability for superannuation fund on the basis of the premium paid to Life Insurance Corporation of India in respect of
employees covered under the Superannuation Fund Policy.
• For other subsidiary companies, these are provided for on the basis of management estimate.
g. Recognition of Income and Expenses :
For all companies except Dabur Finance Ltd. :
• Sales and purchases are accounted for on the basis of passing of title to the goods.
• Sales comprise of sale price of goods including excise duty and sales tax but exclude discount, except for Dabur Nepal
Pvt. Ltd. where sales realization is considered net of VAT.
• Exports Sales are accounted for on the basis of date of bill of lading.
• All items of income and expenses have been provided on accrual basis.

91
Annu al Rep o r t 2002-03
 schedules annexed to and forming part of the accounts for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

For Dabur Finance Ltd :

• Lease rentals are recognized as Income when the same become receivable in terms of the lease agreements except
where payments of lease rentals have been rescheduled, the same are recognized as income to the extent of receipts.
• Income from Hire Purchase transactions are recognized by applying the implicit rate in-built on diminishing balance
transactions except where payments of Hire Purchase rentals have been rescheduled, the same are recognized as
Income to the extent of receipts.
• Bad Debts are written off and provision in respect of performing and other class of assets is made based on period
review of receivable and guidelines of RBI over and above such provisions bad debts are being written off in such
cases as determined by the company.
h. Deferred Taxation :
The liability of company is estimated considering the provision of the Income Tax, 1961. Deferred tax is recognized subject
to the consideration of prudence, on time differences being the difference between taxable income and accounting income
that originate in one period and capable of reversal in one or subsequent periods, has been considered for Dabur India Ltd.
only. For Dabur Egypt Limited, Dabur Nepal Private Ltd. & Dabur Overseas Limited, the same is not mandatorily applicable.
In the case of Dabur Foods Ltd. and Dabur Finance Ltd., considering carry forward loss in the books of both the companies
and restriction imposed to recognize deferred tax asset thereon under para 17 of AS 22 issued by ICAI, no deferred tax
has been considered.
i. Contingent Liabilities :
Disputed liabilities and claims against the company including claims raised by statutory authorities, pending in appeal, are
treated among contingent liabilities and are not provided for in the accounts but are disclosed by way of note in Notes to
Accounts.
j. Foreign Currency Translation :
In respect of foreign branches/offices, revenue items have been converted at average of month end exchange rates during
the year. Fixed assets have been converted at the rates prevailing on dates of purchase. Assets & Liabilities other than fixed
assets are converted at the year-end exchange rate. Exchange gain or loss arising out of above is charged to Profit & Loss
Account.
Receivables/payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year
end date and the resultant gain or loss, is charged to the Profit & Loss Account. As regards payables in respect of fixed
assets, refer to item (b) above.
Exchange Loss / Gain arising out of transactions of revenue nature are separately disclosed in notes on accounts.
k. Employee Stock Option Scheme (ESOS) :
Aggregate of quantum of option granted under the scheme in monetary term has been shown as Employees Stock Option
Scheme outstanding in Reserve and Surplus head of the Balance Sheet by way of debiting deferred Employees Compensation
under ESOP as per guidelines to the effect issued by SEBI.
l. Miscellaneous Expenditure :
• Share issue expenses are being amortized over a period of ten years.
• Technical know-how fees paid to Technical Collaborators are being amortised over a period of six years.
• Strategic Management Consultancy Expenses are being amortized over a period of five years.
• Deferred Employees Compensation under ESOP are being amortized on straight line basis over vesting period.
• Deferred advertisement, publicity and sales promotion expenses are being amortized over a period of five years in
Dabur Foods Ltd., one of the subsidiaries.
B. Notes to Account :
1. Building constructed on leasehold land included in the value of building shown in Fixed Assets Schedule :
As at 31st As at 31st
March, 2003 March, 2002
Cost/Revalued 7,568.20 7,180.35
Written Down Values 5,786.25 5,281.11
2. i. The parent company has impaired its assets in terms of AS 28 issued by ICAI. The entire exercise of impairment of assets
was entrusted to two firms – one being a firm of Chartered Accountants and the other a firm of Chartered Engineers who
jointly conducted the work.
a) Impairment Loss arrived at during the year for the first time working upto Rs. 4,894.69 has been adjusted against
opening balance of general reserve (as per para –124 of AS 28) which led to reduction of reserve and surplus, net
worth and fixed assets by like amount.

92
Dabur India Limited (Consolidated)
schedules annexed to and forming part of the accounts for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b) Impairment loss in terms of different categories of assets remain as follows :

Building, Roads & Culverts 1,985.29
Plant & Machinery 2,270.89
Vehicles 7.62
Furniture & Office Equipment 630.88
4,894.69
c) Impairment loss has been recognized on the recommendation of technical and financial consultants who conducted
required survey of assets.
d) Impairment loss provided against opening general reserve led to write back of deferred tax of Rs. 1,800.75 provided
earlier against general reserve thereby adding to reserve and surplus and reducing deferred tax liabilities by like
amount.
ii. Assets of subsidiaries are pending impairment which will be taken up in future.
3. Loans and Advances include Rs. 48.64 (previous year Rs. 46.67) paid by the Company to Excise authorities on behalf of Sharda
Boiron Laboratories Limited, now known as SBL Limited, in respect of excise duty demand of Rs. 68.13 raised by the District
Excise Officer, Ghaziabad, against the Company and Sharda Boiron Laboratories Limited. The Hon’ble Supreme Court of India
had concurred with the order of the District Excise Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the Hon’ble Supreme Court of India, which was also decided
against the Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the
Company and as per the terms and conditions of the contract executed with them, the recovery proceedings have been initiated
by the Company against Sharda Boiron Laboratories Limited for Rs. 48.64 by invoking the arbitration clause. The matter is pending
before Hon’ble High Court of Delhi for the appointment of an arbitrator. The balance amount of Rs. 21.46, along with interest
demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities. During
the year 1991-92 the Company had received a refund of Rs. 5.95, pursuant to the decision of Hon’ble Supreme Court in this
regard. Necessary adjustment in respect of recovery/refund will be made as per the arbitration proceedings.
4. The Company has provided Rs. 55.37 (previous period Rs. Nil) as liability accruing on account of deferred entitlement towards
LTC. (Refer Para 2 (c) of Accounting Policies).
5. a) Investment (Rs.135) in Dabon International Private Limited is held for disposal in near future. As such the same has not been
accounted for as authorized under para –7(a) of AS-23 issued by ICAI.
b) Two subsidiary companies Dabur Oncology Plc. UK and Dabur Pharma Ltd. have been excluded from the Consolidated
Financial Statement as authorized under para 11 (a) of AS 21 issued by ICAI as the investment in these entities are poised
for transfer to a new entity in near future pursuant to the demerger of the Company between FMCG and Pharmaceuticals
Business.
6. i) Rs.nil (Previous year Rs.20.26) has been credited against capital reserve on account of appreciation in carrying cost of
investment in foreign subsidiaries vis-à-vis cost of the same due to exchange fluctuation between the date of investment,
and the date of commencement of commercial production on the part of these subsidiaries.
ii) Rs. Nil (Previous year Rs. 300) adjusted from share premium account on account of elimination of investment in Dabur Nepal
Pvt.Limited against proportionate of stake of parent company at the time of establishment of parent- subsidiary relationship.
iii) Rs.Nil (Previous year Rs.174.82 and Rs.2.58 ) debited and credited against general reserve on account of depreciation
charge and technical know-how of Dabur Nepal Pvt. Limited in terms of parent company’s accounting policy.
iv) Consequent upon exclusion of Dabur Oncology Plc.UK (refer note No.5(b) above) for the purpose of consolidation, capital
reserve during the year is increased by Rs.54.03 (previous year – Rs. Nil).
7. Contingent Liabilities:
i. Claims against the Company not acknowledged as debts:
a) In respect of civil suits filed against the Company Rs. 168.42 (previous year Rs. 160.42).
b) In respect of claims by employees Rs. 9.48 (previous year Rs. 4.87).
ii. In respect of letters of credit Rs. 2,125.88 (previous year Rs. 2,404.12)..
iii. In respect of Bank Guarantees executed Rs.700.73 (previous year Rs. 259.24)..
iv. In respect of Sales Tax under appeal Rs. 434.79 (previous year Rs. 295.31).
v. In respect of excise duty disputes pending with various judicial authorities Rs.2,941.63. (previous year Rs. 3,889.77).
vi. In respect of Corporate Guarantees given by the Company Rs. 7,138.88 (previous year Rs. 5,377.25).
vii. In respect of Income tax under appeal Rs. 112.68 (previous year Rs 223.39).
viii. Estimated Amount of contract remaining to be executed on Capital Account Rs.486.80 net of Advance (previous year
Rs. 1,145.40).
ix. In respect of Bills Discounted by the Company Rs 179.80 (previous year Rs. 5,377.25).
x. In respect of Dividend Tax Rs. 49.16 (previous year Rs. 49.16).
xi In respect of disputed Customs Duty Rs. Nil (previous year Rs. 49.16).
8. The Other Notes to Account containing inter-alia explanatory material except for quantitative particular pertaining to foreign
subsidiaries, disclosure of which is not required under respective statute, are disclosed with the accounts of different companies
under consolidation.

93
Annu al Rep o r t 2002-03
 schedules annexed to and forming part of the accounts for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

9. Related Party Disclosures

Related party disclosures as required under AS 18 on “Related Party Disclosures” issued by the Institute of Chartered Accountants
of India are given below :
(a) Name of related party and nature of related party (iii) Associate entities over which Key Management
relationship where control exists : Personnel are able to exercise significant influence
Nil 1. Malhotra Trading Co.
2. Jetways Travels Pvt. Ltd.
(b) Name of related party and nature of related party 3. Gyan Enterprises Pvt. Ltd.
relationship other than those referred to in (a) above 4. Puran Associates Pvt. Ltd.
in transaction with the Company : 5. Acee Enterprises
6. Chowdry Associates
(i) Joint Ventures/Joint Ventures Partners 7. Miracle Commercial Enterprises Pvt. Ltd.
Dabon International Pvt. Ltd. 8. Wakarusa Laboratories Pvt. Ltd.
Mr. Rukma Rana, joint venture partner in (iv) An enterprise owned by any Directors of Dabur India Ltd.,
Dabur Nepal Pvt. Ltd. (even though he may not be Director in that enterprise)
Redrock Ltd., joint venture partner in 1. VIC Enterprises Pvt. Ltd.
Dabur Egypt Ltd. 2. Ratna Commercial Enterprises Pvt. Ltd.
(v) An enterprise owned by major shareholders
(ii) Key Management Relatives of Key (major shareholders of Dabur India Limited are)
Personnel (Whole-time Management 1. Milky Investment & Trading Co .
Directors) Personnel 2. Sanat Products Ltd.
3. Sahiwal Investment & Trading Co.
1. Pradip Burman Chetan Burman 4. Trojan Developers Private Ltd.
R.C. Burman 5. Western Enterprises
2. Dr. Anand Burman A.C. Burman 6. Eastern Enterprises
3. Amit Burman Asha Burman (vi) An enterprise over which Company is able to exercise
significant influence :
4. P. D. Narang —
1. Dabur Pharmaceuticals Limited
5. Sunil Duggal — 2. Dabur Ayurvedic Speciality Limited
3. Williamsons India Private Limited
Transaction with Related Parties During the Year 2002-03
Associates Key Relatives Total Outstanding
Management of Key As on
Personnel Management 31.03.03
Personnel
Purchase of goods 1,701.38 — — 1,701.38 42.21
(1,712.21) (—) (—) (1,712.21) (514.05)
Sale of goods 71.48 — — 71.48 3.88
(1,745.22) (—) (—) (1,745.22) (326.80)
Services received 2,758.96 — — 2,758.96 268.19
(3,189.19) (—) (—) (3,189.19) (2,304.29)
Repayment of deposits — — — — —
(—) (54.90) (255.89) (310.79) (—)
Loans received 3,779.63 — — 3,779.63 2,289.00
(8,117.00) (372.80) (53.34) (8,543.14) (4,107.27)
Interest paid on loans received 368.33 — — 363.22 —
(260.14) (49.11) (18.56) (327.81) (—)
Loan repayment (instal. recd.) 50.00 0.66 — 50.66 353.16
(—) (—) (—) (—) (—)
Interest recd on loans given 51.04 0.48 — 51.52 —
(—) (—) (—) (—) (—)
Remuneration/pension/exgratia — 457.84 334.88 792.72 —
(—) (702.97) (132.62) (835.59) (—)
Rent paid 22.70 — — 22.70 12.56
(—) (—) (—) (—) (—)
Security deposit recd. 1.44 — — 1.44 —
(—) (—) (—) (—) (—)
Royalty received 106.21 — — 106.21 90.65
(114.97) (—) (—) (114.97) (114.97)
Figures in brackets are for previous year.

94
Dabur India Limited (Consolidated)
schedules annexed to and forming part of the accounts for the year ended 31st march, 2003
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

10. Information about Primary Business Segments

(All amounts in Rs. Lacs)

FMCG Pharmaceuticals Foods Eliminations Others Total Consolidated

Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year Year Year Year Year
REVENUE :
External sales 1,09,532.1 99,398.1 18,379.5 16,290.1 7,607.3 5,653.2 — — 1,566.9 6,754.8 1,37,085.8 1,28,096.3
Inter-segment sales — — — — — — — — — — — —
Total revenue 1,09,532.1 99,398.1 18,379.5 16,290.1 7,607.3 5,653.2 — — 1,566.9 6,754.8 13,7085.8 1,28,096.3

RESULT :
Segment result 10,244.6 8,402.4 2,069.8 1,965.8 220.0 181.7 — — 708.7 916.1 13,243.2 11,466.0
Unallocated corporate expenses — — — — — — — — — — — —
Operating profit 10,244.6 8,402.4 2,069.8 1,965.8 220.0 181.7 — — 708.7 916.1 13,243.2 11,466.0
Interest expense (1,718.1) (2,205.2) (515.7) (724.0) (179.7) (169.9) — — (199.2) (232.6) (2,612.7) (3,331.7)
(Net of Interest Income)
Income Tax (Current + Deferred) — — — — — — — — — — (1,327.3) (1,271.2)
Profit from ordinary activities 8,526.6 6,197.3 1,554.1 1,241.8 40.3 11.7 — — 509.5 683.5 9,303.3 6,863.2
Extraordinary loss : uninsured
earthquake damage to factory — — — — — — — — — — — —
Net profit 8,526.6 6,197.3 1,554.1 1,241.8 40.3 11.7 — — 509.5 683.5 9,303.3 6,863.2
OTHER INFORMATION :
Segment assets 52,543.2 59,750.5 22,711.9 29,573.5 4,682.1 4,317.3 (3,375.4) (13,579.4) 9,132.3 7,866.1 85,694.1 87,928.0
Unallocated corporate assets — — — — — — — — — — 2,469.9 2240.8
Total assets 52,543.2 59,750.5 22,711.9 29,573.5 4,682.1 4,317.3 (3,375.4) (13,579.4) 9,132.3 7,866.1 88,164.0 90,168.7
Segment liabilities (29,070.9) (28,810.9) (4,120.5) (9,326.8) (5,051.4) (3,017.2) 351.6 2,421.0 (5,495.0) (9,780.1) (43,386.3) (48,514.0)
Unallocated corporate liabilities — — — — — — — — — — (2,596.8) (1,924.2)
Total liabilities (29,070.9) (28,810.9) (4,120.5) (9,326.8) (5,051.4) (3,017.2) 351.6 2,421.0 (5,495.0) (9,780.1) (45,983.0) (50,438.3)
Capital expenditure 3,397.8 5,264.0 1,095.2 558.2 — — — — 21.3 32.4 4,514.3 5,854.7
Depreciation 2,114.7 1,994.5 430.5 300.0 174.1 160.5 6.9 55.0 204.7 357.9 2,931.0 2,867.9
Non-cash expenses other — — — — — — — — — — 382.3 618.7
than depreciation

Secondary Segment
As the Company also exports, the secondary segment for the Company is based on the location of customers. Out of the total
sales of Rs.1,37,085.80 lacs, the export sales is of Rs. 11,646.42 lacs and domestic sale is Rs. 1,25,439.34 lacs.
Note :
1. Segment results of current year are net of Rs. 3,785.75 lacs and Rs. 1,108.94 lacs for FMCG and Pharmaceuticals segments
being impairment loss of respective segments provided during the year.
2. Identification of primary segment has been modified during the year by way of assuming other segments as integral part of
FMCG, as the same virtually belongs to FMCG segment in functional sphere. Information relating to previous year also have
been re-arranged accordingly.
11. Recoverable value from impaired fixed assets in parent company amounting to Rs. 208.71 (previous year Nil) have been shown
under the head of inventories forming part of current assets loans and advances in Schedule H.
12. Revenue implication of exchange fluctuation works out to Rs.155.55 (previous period gain of Rs.139.29)- net of debit, being
charged to Profit & Loss Account.
13. Grouping and heads of accounts of the subsidiaries have been rearranged in terms of presentation of those of parent company
as and when necessary. Considering exclusion of Dabur Oncology Plc. UK from the purview of consolidation unlike previous year,
figures of previous year are not comparable with those of current year.

As per our report of

even date attached
V. C. BURMAN P. D. NARANG P. N. VIJAY For G. BASU & CO.
Chairman Director Director Chartered Accountants
New Delhi ASHOK JAIN S. LAHIRI
16th May, 2003 Company Secretary Partner

95
Annu al Rep o r t 2002-03
 statement of cash flow (pursuant to AS-3 issued by ICAI)
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Particulars 2002-2003 2001-2002

(Rs. in Lacs) (Rs. in Lacs)
A. Cash flow from operating activities
Net profit before tax and extraordinary items 10,635.72 8,230.15
Add :
Depreciation 2,931.03 2,867.93
Miscellaneous exp. written off 290.68 566.71
Miscellaneous exp. written off (included in Director Remuneration) 60.15 133.74
Interest 2,612.61 3,331.66
5,894.48 6,900.04
16,530.19 15,130.19
Less :
Dividend received 3.13 17.17
Profit on sale of investment (11.26) —
Profit on sale of assets 46.31 303.19
38.17 320.36
Operating profit before working capital changes 16,492.01 14,809.83
Working capital changes :
Increase/(Decrease) in inventories 1,828.53 2,315.07
Increase/(Decrease) in debtors (364.65) (1,493.75)
Decrease/(Increase) in trade payables (2,867.11) (2,609.36)
Increase/(Decrease) in working capital (1,403.23) (1,788.04)
Cash generated from operating activities 17,895.25 16,597.88
Interest paid 2,551.07 3,342.25
Tax paid 884.10 989.46
Income tax refund (261.50) (176.30)
Corporate tax on dividend — 455.49
3,173.67 4,610.90
Cash used(-)/(+) generated for operating activities (A) 14,721.57 11,986.97
B. Cash flow from investing activities
Purchase of fixed assets (4,514.29) (7,442.32)
Sale of fixed assets 7,856.79 762.06
Purchases of investment including investment in subsidiaries (20,043.86) (355.65)
Sale of investments 12,554.04 1.21
Dividend received 3.13 17.17
Cash used(-)/(+) generated for investing activities (B) 4,144.20) (7,017.53)
C. Cash flow from financing activities
Proceeds from share capital & premium 1.56 3.81
Repayment(-)/proceeds (+) of long term secured liabilities (1,020.67) (2,081.33)
Repayment(-)/proceeds(+) from short term loans (752.69) 1,169.33
Proceeds from deposits (738.26) (1,424.57)
Repayment(-)/proceeds(+) from other unsecured loans (6,481.63) 2,065.03
Payment of other advances 568.51 235.40
Payment of dividend (1,491.70) (4,313.84)
Cash used(-)/+(generated) in financing activities (C) (9,914.89) (4,346.17)
Net increase(+)/decrease (-) in cash and cash equivalents (A+B+C) 662.49 623.27
Cash and cash equivalents opening balance (1st April, 2002) 3,567.06 2,943.79
Cash and cash equivalents closing balance (31st March, 2003) 4,229.55 3,567.06

96
Dabur India Limited (Consolidated)