Financial Ananlysis of Dabur India Limited

DaburAmlaKeshTelGulabariHajmolaV
Page 1 of 69
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FINANCIAL ANANLYSIS OF
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Page 2 of 69
Table of Contents
Introduction....................................................................................................................................................4
Brief Background........................................................................................................................................4
Timeline of major milestones in the history of Dabur.......................................................................................5
Key Product Lines......................................................................................................................................5
List of people in board of directors................................................................................................................6
Shareholding Pattern..................................................................................................................................7
Enclosure on the Operating Performance of the Company..................................................................................7
Market Share.............................................................................................................................................7
Key Raw Materials......................................................................................................................................8
Sales Mix...................................................................................................................................................8
Sales- Domestic or Export...........................................................................................................................9
Peer Comparison.....................................................................................................................................10
RONW(Return on Net Worth).................................................................................................................10
Profit Margins.......................................................................................................................................11
Return on Assets..................................................................................................................................12
Trend Analysis.........................................................................................................................................13
Trend in Sales......................................................................................................................................14
PBT (Profit before Tax)..........................................................................................................................14
PAT (Profit after Tax)............................................................................................................................15
EPS and Dividend................................................................................................................................16
Financial Analysis 1: Analysis of Balance Sheet and Profit And Loss Account.....................................................18
Analysis of Balance Sheet.........................................................................................................................18
Application of Funds.............................................................................................................................19
Sources of Funds.................................................................................................................................22
Overall Comment..................................................................................................................................24
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Analysis of Profit and Loss Account............................................................................................................25

Sales and other income.........................................................................................................................27
Expenditure.........................................................................................................................................27
Financial Analysis 2: Ratio Analysis................................................................................................................29
Solvency Ratios.......................................................................................................................................29
Proprietary Ratio..................................................................................................................................30
Debt Equity Ratio..................................................................................................................................30
Long Term Debt to Equity Ratio or Gearing Ratio.....................................................................................31
Interest Coverage Ratio.........................................................................................................................32
Overall Analysis of Solvency Ratios........................................................................................................33
Liquidity Ratios.........................................................................................................................................34
Current Ratios......................................................................................................................................34
Liquid Ratio..........................................................................................................................................35
Net Working Capital..............................................................................................................................36
Operating cash Flow Ratio.....................................................................................................................37
Overall Analysis of Liquidity Ratios.........................................................................................................38
TURNOVER RATIOS................................................................................................................................39
Fixed Asset Turnover Ratio....................................................................................................................40
Net Worth Turnover Ratio......................................................................................................................41
Inventory Turnover Ratio.......................................................................................................................42
Debtors Turnover Ratio.........................................................................................................................44
Creditors Turnover Ratio.......................................................................................................................44
Du Pont Analysis......................................................................................................................................45
Financial Analysis 3: Analysis of Crucial Notes to Accounts...............................................................................47
Note 16 regarding Earnings Per Share under Accounting Standard 20...........................................................47
Analysis of EPS Information Disclosed....................................................................................................47
Notes 12 and 8 regarding Related Party Disclosures under Accounting Standard 18........................................48
Analysis of Disclosures and Managerial Remuneration.............................................................................49
Note 22 regarding Segment Reporting under Accounting Standard 17............................................................50
Segment Analysis for the year ended 31-03-09........................................................................................50
Financial Analysis 4: Analysis of Auditors’ Report.............................................................................................51
Financial Analysis 5: Analysis of Dividend Policy..............................................................................................54
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Financial Analysis 6: Analysis of Cash Flow Statement.....................................................................................55

Compliance with Accounting Standards.......................................................................................................55
Features of Cash Flow Statement...............................................................................................................55
Activity Wise Analysis...............................................................................................................................56
Operating Activities...............................................................................................................................56
Investing Activities................................................................................................................................56
Financial Activities................................................................................................................................57
Quality of Cash Position........................................................................................................................57
Ability to Generate Positive Cash Flows from Operations in Future.............................................................57
Financial Analysis 7: Analysis of Capital Market Valuation.................................................................................58
Earnings Per Share(EPS)..........................................................................................................................58
Price Earnings Ratio (P/E Ratio).................................................................................................................59
Market Capitalization................................................................................................................................60
Yield to Investors......................................................................................................................................61
Analysis of Corporate Governance Report.......................................................................................................63
Compliance with clause 49 of the Listing agreement.....................................................................................63
Analysis of the Management Discussion and Analysis Report requirements....................................................63
Analysis of the implications of the information provided.................................................................................64
Recommendations to the management n the strategic issues........................................................................64
Analysis of Directors’ Report..........................................................................................................................64
SWOT ANALYSIS....................................................................................................................................65
Strengths.............................................................................................................................................65
Weakness............................................................................................................................................66
Opportunities.......................................................................................................................................66
Threats................................................................................................................................................66
Brief Write-Up on the Sector and Future prospects of the Company...................................................................67
INTRODUCTION
Page 5 of 69
Brief Background
Dr. S.K. Burman set up Dabur India Limited in 1884 to produce and dispense Ayurvedic medicines. In 1956
Dabur India (Dr. S.K. Burman) Pvt. Ltd became a full fledged company. It is s a leading consumer goods
company in India with a turnover of Rs. 2834.11 Crores (FY09) which markets its products in over 60
countries.
It has many major products like the Dabur Chyawanprash which enjoys 65% market share, Hajmola tablets
which enjoys 75% market share, Dabur honey occupying 75% market share. It has many product lines and
many famous brands in each product line. The company’s roots in the traditional Ayurvedic medicines give
it a very Indian flavor in terms of the products that it launches.
The major groups and subsidiaries of Dabur are:
Major strategic business units (SBU) Subsidiary Group companies Step down subsidiaries
Consumer Care Division (CCD) Dabur International Dabur Nepal Pvt Ltd (Nepal)
Consumer Health Division (CHD) Dabur Egypt Ltd (Egypt)
International Business Division Fem Care Pharma Asian Consumer Care (Pakistan)
(IBD) African Consumer Care (Nigeria)
Newu Naturelle LLC (Ras Al Khaimah-
UAE)
Weikfield International (UAE)
Jaquline Inc. (USA)
Asian Consumer Care (Bangladesh)
Timeline of major milestones in the history of Dabur
1884 Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines.
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd. : It became a full fledged company
1986 Public Limited Company
1996 3 separate divisions
2000 Turnover of Rs.1,000 crore
2008 Acquires Fem Care Pharma
Key Product Lines
Health Care Personal Care Oral Care

Page 6 of 69
Dabur Chyawanprash Hair Care Oil Dabur Red Toothpaste

Dabur ChyawanPrakash Amla Hair Oil Babool Toothpaste
Dabur Chyawan Junior Amla Flower Magic Meswak Toothpaste
Dabur Honey Vatika Enriched Coconut Hair Oil Promise Toothpaste
Dabur Glucose-D Vatika Enriched Almond Hair Oil Babool Mint Fresh Gel
Hair Care Shampoo
Vatika Smooth and Silky Shampoo
Vatika Root Strengthening Shampoo
Vatica Black Shine Shampoo
Vatika Dandruff Control Shampoo
Dabur Total Protect Shampoo
Vatika Smooth & Silky Conditioner
Vatika Root Strengthening Conditioner
Skin Care Consumer Health Foods Home Care

Uveda Complete Fairness Pudin Hara Real Dazzl
Cream Active Antacid Real Activ Sanifresh Shine
Uveda Moisturising Face Honitus Cough Syrup Burrst Odomos
Wash Honitus Lozenges Hommade Odonil
Uveda Clarifying Face Dabur Badam Oil Lemoneez Odopic
Wash Super Thanda Oil Capsico
Gulabari Rose Water Shilajit Gold
Gulabari Face Freshener Dabur Lal Tail
Gulabari Moisturising Dabur Janma Ghunti
Cream Dabur Gripe Water
Gulabari Moisturising Lotion Active Blood Purifier
Dabur Balm Strong
List of people in board of directors
Chairman: Dr. Anand Burman
Vice Chairman: Mr. Amit Burman

Whole Time Directors Mr. P.D. Narang, Mr. Sunil Duggal and Mr. Pradip Burman
Independent Directors Mr. Bert Paterson, Mr. P. N. Vijay, Mr. R C Bhargava, Dr. S. Narayan
and Mr. Analjit Singh
Non Whole Time Promoters, directors Mr. Mohit Burman
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Shareholding Pattern
The Details of the shareholding pattern are as under:
As on March 31, 2009

Particulars No. of share % of Share Holders No. of Shares Held % ofShare Holding
Holders
Directors, promoters and 28 0.03% 611834473 70.73%
family members
FIIs 118 0.11% 74278471 8.59%
Mutual Funds 64 0.06% 31121682 3.60%
Insurance companies 27 0.03% 88968460 10.28%
NRIs 2764 2.64% 4260203 0.49%
Corporates 1303 1.24% 5011529 0.58%
Individuals 100492 95.89% 49601431 5.73%
Total 104796 100% 865076249 100.00%
ENCLOSURE ON THE OPERATING PERFORMANCE OF THE COMPANY
Market Share
The below mentioned brands contribute a value close to $8Bn to Dabur.
Brands Market Share
Honey 75%
Chyawanprash 65%
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Hajmola 75%
Real 40%
Vatika hair Oil 8.5%
herbal Digestives 90%
Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row.
About 2.5 crore Hajmola tablets are consumed in India every day
Key Raw Materials
Raw material 2008-2009 2007-2008 2006-2007 2005-2006

Sugar & Molasses 31.1 23.88 28.21 26.11
Herbs,Jari Booti & Raw Madhu 140.17 111.12 72.69 71.45
Vegetables Oils 122.52 95.95 83.88 52.94
Chemicals & Perfumery Compounds 164.2 149.56 110.51 84.79
Key raw materials being used are Herbs, Jari booti and Raw Madhu that signifies the fact that most of the
Dabur products are naturally made and are good for skin and health. Chemicals and perfumeries also form
a vital part of the raw materials. The consumption of raw material has increased over the past four years
signifying the increased sales and hence the increased profits of the products and the company.
Sales Mix
Segment 2009 2008 2007 2006

Hair Oils 504.84 375.7 306.76 268.1
Tooth Powders & Paste 329.7 300.73 195.75 63.19
Chywanprash 194.3 179.47 171.91 150.07
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Honey. 116.88 106.61 85.56 78.14

Hajmola. 90.51 71.49 78.08 72.65
Fruits/Nector/Drinks 76.13 66.34 Nil Nil
Asava-Arishta 56.4 48.97 46.95 53.16
Vegetable Pastes 6 5.15 Nil Nil
Important Inferences:
All the segments have been showing constant growth over the past 4 years.
The main highlight has been the Tooth Powder and paste segment which has shown a growth of
422% in the past 4 years. This has been the mainstay of the Overall sales.
Major Contributor to Dabur sales has been Hair Oils.
Real Juice and vegetable pastes- These have been the newest ventures wherein the company has
invested and the segment has been doing well since its formation.
Sales- Domestic or Export
Year Domestic Sales Export Sales

2006 132,454.64 4,513.65
2007 170,549.27 7,253.16
2008 201,293.09 10,485.77
2009 230,162.64 12,205.25
Most of the consumption of Dabur is in-house, that is Domestic and only around 4.3% of the produce is
exported.
The average growth rate over the four years is more for exports (41%) as compared to domestic (20%). So
the company is steadily increasing its exports but there is still a long way to go before Dabur can make a
name for itself in the international market.
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The domestic growth rate of sales has reduced from 29% in FY2006 to 14% in FY2008. This may be due to
the tough competition in the domestic market and the economic downturn.
Peer Comparison
RONW(Return on Net Worth)
RONW
2009 2008 2007 2006
Dabur 51.2% 61.6% 65.8% 45.4%
HUL 116.7% 115.5% 56.5% 58.7%
ITC 25.9% 25.9% 25.2% 23.3%
Nestle 112.8% 98.9% 81.0% 87.4%
140.0%
120.0%
100.0%
80.0% Dabur
HUL
60.0% ITC
Nestle
40.0%
20.0%
0.0%
2006 2007 2008 2009
The net worth of Dabur is increasing at a faster rate as compared to the net profit and therefore the decline
in the past few years. That is, the company is giving lesser returns with the increase in capital investment
by the owners of the company.
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Profit Margins
Profit Margins
2009 2008 2007 2006
Dabur 15.6% 15.2% 14.2% 13.8%
HUL 12.2% 12.6% 12.7% 12.2%
ITC 22.4% 22.2% 23.3% 24.0%
Nestle 12.4% 11.8% 11.2% 12.5%
Dabur is doing better than most peers as far as the Profit margins are concerned. Dabur has shown a
steady upward trend in the past 4 years where its peers have shown a reduction in atleast one of the four
years.
30.0%
25.0%
20.0%
Dabur
15.0% HUL
ITC
Nestle
10.0%
5.0%
0.0%
2006 2007 2008 2009
Page 12 of 69
Return on Assets
Return on Assets
2009 2008 2007 2006
Dabur 41.2% 55.3% 56.5% 38.9%
HUL 96.7% 107.8% 55.1% 57.3%
ITC 24.3% 24.3% 24.0% 21.6%
Nestle 104.5% 92.0% 77.8% 84.0%
120.0%
100.0%
80.0%
Dabur
60.0% HUL
ITC
Nestle
40.0%
20.0%
0.0%
2006 2007 2008 2009
The figures may be misleading. It shows a downward trend over the years. That is because the company is
investing more in the long term assets rather than going for short term investment. It can be said that the
results will reflect the same in the next few year
Page 13 of 69
Ten Year figures at a Glance (2000-2009)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sales & Other Income 1044.48 1130.43 1119.32 1168.54 1094.31 1238.20 1365.13 1619.74 2112.76 2439.22
Index 1.00 1.08 1.07 1.12 1.05 1.19 1.31 1.55 2.02 2.34
PBDT 102.59 107.62 96.50 117.58 129.19 182.11 233.91 306.20 390.92 452.42
Index 1.00 1.05 0.94 1.15 1.26 1.78 2.28 2.98 3.81 4.41
PBT 81.29 85.16 75.51 95.54 113.44 165.01 214.86 284.22 365.17 425.00
Index 1.00 1.05 0.93 1.18 1.40 2.03 2.64 3.50 4.49 5.23
PAT 77.66 77.63 65.03 84.92 101.20 148.01 189.08 252.08 316.77 373.55
Index 1.00 1.00 0.84 1.09 1.30 1.91 2.43 3.25 4.08 4.81
Equity Paid-Up 28.52 28.52 28.56 28.52 28.52 28.51 28.51 28.51 28.50 28.48
Index 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Gross Block 359.21 362.12 376.50 297.18 268.16 317.46 328.23 404.30 467.94 518.77
Index 1.00 1.01 1.05 0.83 0.75 0.88 0.91 1.13 1.30 1.44
Net Working Capital ( Incl.
Def. Tax) 304.01 235.32 242.32 190.31 -24.30 -81.66 -38.35 19.06 -33.09 71.61
Index 1.00 0.77 0.80 0.63 -0.08 -0.27 -0.13 0.06 -0.11 0.24
Current Assets ( Incl. Def.
Tax) 412.23 392.85 407.67 406.45 219.89 253.35 285.68 397.78 576.82 768.57
Index 1.00 0.95 0.99 0.99 0.53 0.61 0.69 0.96 1.40 1.86
Current Liabilities and
Provisions ( Incl. Def. Tax) 108.22 157.53 165.35 216.14 244.19 335.01 324.03 378.72 609.91 696.96
Index 1.00 1.46 1.53 2.00 2.26 3.10 2.99 3.50 5.64 6.44
Total Assets/Liabilities
(excl Reval & W.off) 710.24 708.45 775.41 734.85 546.06 715.90 759.60 782.17 1141.62 1565.50
Index 1.00 1.00 1.09 1.03 0.77 1.01 1.07 1.10 1.61 2.20
Net Worth 320.04 362.20 400.37 411.10 268.65 338.07 447.87 403.19 528.32 738.20
Index 1.00 1.13 1.25 1.28 0.84 1.06 1.40 1.26 1.65 2.31
Capital Employed 609.06 558.30 613.54 521.11 308.46 386.70 468.44 423.27 545.66 877.18
Index 1.00 0.92 1.01 0.86 0.51 0.63 0.77 0.69 0.90 1.44
Book Value (Unit Curr) 11.22 12.70 14.02 14.38 9.39 11.80 7.81 4.67 6.11 8.53
Index 1.00 1.13 1.25 1.28 0.84 1.05 0.70 0.42 0.54 0.76
Market Capitalisation 2336.50 1736.87 1587.94 1026.02 2251.75 3179.04 7106.05 8193.24 9495.36 8538.54
Index 1.00 0.74 0.68 0.44 0.96 1.36 3.04 3.51 4.06 3.65
EPS (annualised) (Unit
Curr) 2.61 2.62 2.23 2.86 3.28 4.83 3.05 2.72 3.41 4.02
Index 1.00 1.00 0.85 1.09 1.26 1.85 1.17 1.04 1.31 1.54
Dividend (annualised%) 100.00 100.00 50.00 140.00 200.00 250.00 250.00 175.00 150.00 175.00
Payout (%) 38.26 38.17 22.45 49.01 60.99 51.79 57.32 51.98 43.97 43.53
Payout (%) 60.99 49.01 22.45 38.17 38.26 29.31 23.00 19.93 24.85 35.83
ROG-Net Worth (%) 22.38 13.17 10.54 2.68 -34.65 25.84 32.48 -9.98 31.04 39.73
ROG-Net Sales (%) 13.97 10.67 -0.41 5.11 -6.59 13.27 9.51 19.19 30.18 15.01
Trend Analysis
Trend in Sales
Over the past 10 years the sales figures have increased by 189%. The growth has been uniform with an exception of one year (2003-04) where the
sales dipped. This year also, the sales have increased by 18.3%.
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008
Sales 982 1100 1200 1285 1236 1417 1757 2080 2396
Sales
3000
2500
2000
Sales
1500
1000
500
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
PBT (Profit before Tax)
PBT has shown an upward growth over the past 10 years. It has grown by almost 450%, much more than compared to sales growth. So we can infer
that there are major sources of non-operating income.
PBT
500
450
400
350
300
PBT
250
200
150
100
50
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PAT (Profit after Tax)
PAT has also shown an upward trend as it directly follows the PBT figures.
PAT
450
400
350
300
250 PAT
200
150
100
50
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
EPS and Dividend
We can see in the figure that the dividend is dependent on the earnings per share (EPS) of the company. i.e. when EPS increases, the company
pays a higher dividend and vice-versa. Initially from 2000 to 2002 the dividend decreased. This was due to a share split in 2000. Then there was an
increase till 2005, when it again started to decline. This was because the earnings per share had reduced. This year both EPS and Dividend
increased. The dividend paid this year was 175% as compared to 150% paid last year.
6
3 EPS
Dividend Index
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
FINANCIAL ANALYSIS 1: ANALYSIS OF BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
Analysis of Balance Sheet
Horizontal Balance Sheet (Comparison 2008 and 2009)

Increase/Decrease over
2009 2008 2008
(Rs. In lakhs) (Rs. In lakhs) (Rs. In lakhs) %age
SOURCES OF FUNDS :
Shareholder's Funds
Share Capital 8,650.76 8,640.23 10.53 0.12
Reserves Total 65,168.91 44,192.11 20,976.80 47.47
Total Shareholder's Funds 73,819.67 52,832.34 20,987.33 39.72
Loan Funds:
Secured Loans 825.56 1,644.72 (819.16) (49.81)
14,592.2
Unsecured Loans 13,071.69 88.97 12,982.72 4
Deferred tax Liability 3,048.50 2,727.97 320.53 11.75
Total Liabilities 90,765.42 57,294.00 33,471.42 58.42

APPLICATION OF FUNDS :
Fixed Assets
Gross Block 57,048.09 48,419.78 8,628.31 17.82
Less : Accumulated Depreciation 21,044.98 18,976.77 2,068.21 10.90
Net Block 36,003.11 29,443.01 6,560.10 22.28
Investments 43,689.59 27,037.13 16,652.46 61.59
Deferred Tax Assets 2,353.09 2,400.74 (47.65) (1.98)
Current Assets, Loans and Advances:
Inventories 26,171.64 20,114.69 6,056.95 30.11
Sundry Debtors 11,236.01 10,046.43 1,189.58 11.84
Cash and Bank 14,368.48 6,826.46 7,542.02 110.48
Loans and Advances 22,728.33 18,293.75 4,434.58 24.24
Total Current Assets 74,504.46 55,281.33 19,223.13 34.77
Less : Current Liabilities and Provisions
Current Liabilities 35,138.71 31,722.51 3,416.20 10.77
Provisions 31,510.20 26,540.97 4,969.23 18.72
Total Current Liabilities 66,648.91 58,263.48 8,385.43 14.39
Net Current Assets 7,855.55 (2,982.15) 10,837.70 (363.42)
Miscellaneous Expenses not written off 864.08 1,395.27 (531.19) (38.07)
TOTAL 90,765.42 57,294.00 33,471.42 58.42
Application of Funds
Fixed assets of Dabur
Dabur owns fixed assets worth 360.03 crores at depreciated value compared to last year’s 294.43 crores . Within the fixed assets plant and
machinery, that is, assets directly needed for production stands at 133.75 crores i.e. 37% of the total fixed assets. Next is the amount invested in
buildings i.e. 117.17 crores. The company has invested substantially higher in buildings.
The advance against capital goods worth 591.77 lakhs has been included in the total fixed assets. However this have not been received yet. It may
be observed that no depreciation has been provided on freehold land and livestock. The company has almost negligibly increased leasehold land
while substantially increasing the freehold land from last year.
Investments FY 08- 270 crores, FY 09- 437 Crores
Dabur’s investments are more than its fixed assets by almost 76 crores totaling to 436 crores. The total investment is a substantial figure compared
to the total asset size. It has invested almost 117 crores in mutual funds while it has invested 21.5 crores in government bonds. Thus it can be said
that the co. carries surplus cash in business which it utilizes in investing. The co. believes in investments. The co has also invested almost 87 crores
in its subsidiaries.
Finally the main reason for the 62% increase in its investments from last year is the advance paid against the equity shares of Fem Care Pharma Ltd
which Dabur has proposed to acquire. It totals to almost 205 crores. Thus the company has taken a significant step towards expanding its business
by taking the decision to acquire to FEM.
Current Assets, loans and advances
The company has reported debtors of 236 crores while the total sales is around 2400 crores. So comparatively it is a smaller picture. Also the debts
which are considered doubtful is around 12 crores, which is a small figure compared to total debtors.Also it can be seen that the co. has invested
around 100 crores in fixed deposits.
Dabur has around 31.5 crores in cash balances. They constitute an insignificant part of the current assets,although they play a crucial role in
operations.
Loans and advances of Dabur is around 227 crores which includes security deposits with various authorities and advance payment of tax as a major
constituent. The debtors which are outstanding for a period exceeding six months are mostly considered doubtful, hence a provision has been made
for them. No provision has been made for the debtors for a period of less than six months. In the notes to accounts it has also been stated that In the
opinion of Board, the Current Assets, Loans and Advances have realizable value at least equal to the amount at which they are stated. It has also
been stated that the Debts due from director/officer of the company is nil.
Miscellaneous Expenditure
It has come down from 13.95 crores to 8.64 crores on account of writing off. The technical knowhow fees has been fully amortised, while the
deferred employee compensation under ESOP has also been amortised substantially, therefore bringing down the misc. expenditure.
Current Liabilities and Provisions
In current liabilities, out of 351 crores the sundry creditors for expense forms a major part of 194 crores. The sundry creditors for goods is 108 crores
which is very minimum figure compared to purchases and is almost half the amount of debtors. Hence it can be said that the co. likes to make
payments to the creditors at the earliest.
Out of 315 crores of provisions, 159 crores is for taxation while 86.5 crores is for the dividend proposed. The co also has provisions for corporate tax
on proposed dividend, liabilities disputed, Gratuity, Leave Salary.
Thus the company has a net asset or net working capital of 78.5 crores which means the company can continue its day to day functions in an
efficient manner.
Deferred tax assets and liabilities
The company has shown the deferred tax liability as an independent figure in the sources of funds which amounts to 30.48 crores while it has shown
the deferred tax assets in the application of funds which amounts to 23.53 crores. The net deferred tax liability is 6.95 crores.
Sources of Funds
Share Capital
Series 1
10000
9000 8628.84 8640.23 8650.76
8000
7000
6000 5733.03
5000
4000
3000
2000
1000
0
(in lacs) 2006 2007 2008 2009
The authorized share capital of the company was 12500 lack equity shares@1 each till 2007. During the year 2007 the authorized share capital of
the company has been increased by Rs. 2000 lakhs, pursuant to merger of Dabur Foods Limited. Thereafter the authorized share capital of the
company continues to be 14500 lakhs @1each.
Change in Capital Structure and Listing of shares
The equity share capital has gone up in the year 2007 because of the following reasons.
2472137 equity shares allotted under Employees Stock Option Scheme
63,336 shares allotted under Merger scheme with erstwhile Balsara Hygiene Products
28,70,45,551 equity shares allotted on 12th February, 2007 as bonus shares by way of capitalization of the free reserves (469066351
shares) and from share premium account (286651392 shares)
The issuance of bonus shares had an impact on the Reserve and surplus which has come down from last year .one of the reasons was because of
the issue.
In the year FY07 and FY08 there has not a significant change in share capital.
Reserve and Surplus:
(in lakhs)
70000
65168.91
60000
50000
44192.11
40000 39053.84
31690.08
30000
20000
10000
0
2006 2007 2008 2009
The increase in reserves and surplus in 2009 is mainly because of the increase in general reserves and profit and loss account balance.
Capital reserves: The Company has kept on increasing the capital reserves throughout the 4 years and has not utilized any amount from it. The
increase has come mainly from transfer from P/L acc, while in 2007 the company has transferred some amount from the merged Entities.
Share premium Account: Has come down significantly in 07 from 06 because of utilization in merger. In 08 and 09 the account has increased slightly
because of premium on issue of shares.
General Reserve: Large amount has been utilized for merger and also for the issuance of bonus shares. So it has come down in 07 and has been
rising thereafter because there has not been anymore issue of bonus shares or merger. It is also seen that the company has steadily increased the
transfer from P/L acc to general reserve throughout the years.
Profit and loss acc: The transfer of the remaining profits from the P/L account has risen steadily over the years. This indicates that the profit of the
company has been rising over the years.
Secured Loans
Secured loans of Dabur have come down from 16.44 crores to 8.25 crores. The company has taken term loans and short term loans from banks.
The company has repaid almost half of the loans in the year, thus the figure for secured loans has come down. The proportion of secured loans to
other sources of funds is very small, suggesting that the company does not depend much on loan funds. However this year the co has taken some
unsecured loans which we will analyze in the next heading
Unsecured Loans
The company’s unsecured loans have risen from less than 1 crores to 130.7 crores. The co has taken short term loan from bank to the tune of 110
crores and that the company has taken almost negligible unsecured loans. The company might be looking to fund some project so it has taken an
unsecured loan this time.
Overall Comment
If we look at the balance sheet we will find that the company is not highly leveraged. It depends more on internal sources of funds than external
sources. The reserves and surplus of the co has become very high as compared to share cap, thus there is a possibility of bonus shares being
issued in future. The company has very high investments compared to fixed assets and the co has positive net current assets. This is a good sign for
the company.
Analysis of Profit and Loss Account
Horizontal Profit & Loss Account (Comparison 2008 and 2009)

Increase/Decrease over
2009 2008 2008
(Rs. In lakhs) (Rs. In lakhs) (Rs. In lakhs) %age
Less Excise Duty 2,751.50 3,439.26 (687.76) (20.00)
Net Sales 239,616.39 208,339.60 31,276.79 15.01
Other Income 4,306.04 2,790.86 1,515.18 54.29
Total Income 243,922.43 211,130.46 32,791.97 15.53

EXPENDITURE :
Cost of Materials 122,243.11 102,833.54 19,409.57 18.87
Manufacturing Expenses 7,076.13 6,985.57 90.56 1.30
Payments to and Provisions for
Employees 16,732.46 14,969.23 1,763.23 11.78
Selling and Administrative Expenses 50,901.37 45,827.98 5,073.39 11.07
Financial Expenses 1,333.55 854.50 479.05 56.06
Miscellaneous Expenditure Written
Off 394.18 566.79 (172.61) (30.45)
Depreciation 2,742.04 2,575.26 166.78 6.48
Total Expenditure 201,422.84 174,612.87 26,809.97 15.35

Balance being Operating Net Profit
before Taxation 42,499.59 36,517.59 5,982.00 16.38
Provision for Taxation : Current 4,748.45 4,057.25 691.20 17.04
Deferred (255.09) 75.32 (330.41) (438.67)
Fringe
Benefit 650.97 707.81 (56.84) (8.03)
Net Profit after Taxation and before
Extraordinary Items 37,355.26 31,677.21 5,678.05 17.92
Credit Balance Transferred from
Merged Entity 0.00 18.58 (18.58) (100.00)
Net Profit after Taxation and
Extraordinary Item 37,355.26 31,695.79 5,659.47 17.86
Balance Brought Forward 32,322.99 22,915.65 9,407.34 41.05
Provision for Taxation of earlier
years written back 0.11 68.55 (68.44) (99.84)
Provision for Taxation for earlier
year 71.68 154.19 (82.51) (53.51)
69,606.68 54,525.80 15,080.88 27.66
Appropriations
Interim Dividend 6,488.07 6,480.05 8.02 0.12
Proposed Final Dividend 8,650.76 6,480.17 2,170.59 33.50
Corporate Tax on Interim Dividend 1,102.65 1,101.28 1.37 0.12
Corporate Tax on Proposed Dividend 1,470.20 1,101.31 368.89 33.50
Transferred to Capital Reserve 0.95 40.00 (39.05) (97.63)
Transferred to General Reserve 9,000.00 7,000.00 2,000.00 28.57
Balance carried over to Balance
Sheet 42,894.05 32,322.99 10,571.06 32.70
69,606.68 54,525.80 15,080.88 27.66
Earning per share (in Rs.) (Face
Value Re 1/- each)
Basic 4.32 3.66 0.66 18.03
Diluted 4.31 3.64 0.67 18.41
No of Shares
Basic 864,907,642.00 863,826,759.00 1,080,883.00 0.13
Diluted 869,156,259.00 868,807,461.00 348,798.00 0.04
Sales and other income
The sales figure of the company has risen from 201,293.09 lacs to 230,162.64 lacs, thereby registering a growth rate of 14%. Also the exports of the
company has risen from 10,485.77 to 12,205.25 lacs thereby registering a growth rate of 16%.
The other income of the company has increased from 2,790.86 lacs to 4,306.04 lacs. The other income of the company includes Export Subsidy,
Rent Realised, Sale of Scrap, Royalty, Miscellaneous Receipts, Profit on sale of long term investment, Profit on sale of current investments, Profit on
sale of Fixed Assets.
If we look at the figures of the sales and other incomes we find that the figure of other incomes is very less compared to the sales figure which
indicates that the company is completely dependent on the operational activities and does not derive much income from other sources.
Expenditure
The cost of materials has risen from 102,833.54 lacs to 122,243.11 lacs . The cost of materials includes Raw Materials Consumed, Packing
Materials Consumed, purchase of Finished Products and Adjustment of Stocks in process and Finished Goods. The Raw Materials Consumed
contributes to almost 45 % to the cost of materials. The packaging materials also constitute a significant portion which shows that FMCG companies
spend more on packaging than other sector companies. There has been a good growth rate in the purchases of raw materials and packaging
materials.
The manufacturing and other expenses have risen from 6,985.57 lacs to 7,076.13 lacs. The manufacturing and other expenses of the company as
compared to the sales figure is not significant
The next item is Payments to and Provisions for Employees. It has also gone up slightly from last year. It includes Salaries, Wages and Bonus ,
Contribution to Provident and other Funds , Workmen and Staff Welfare, Directors’ remuneration.
The next item is the selling and administration expenses. Rent, advertising and publicity, freight are some of the components of the it. It includes
director’s fees and also freight expenses and some research and development.
The financial expenses of the company have also risen from last year. It includes interest paid on fixed loans, bank charges etc.
The company has charged depreciation to the tune of 2742 lacs.
Thus the total expenditure of the company is 201422 lacs, thereby giving Operating Net Profit before Taxation at 42499 lacs. After providing for
taxation the PAT figure has been obtained. The PAT of the company has risen from 31695 lacs to 37,355 lakhs. The profit which has been brought
from last year has been added. Thereby giving a total amount available for appropriation as 69,606 lacs.
The company paid an interim dividend @ 75% and Final dividend @ 100% and transferred 9000 lacs to general reserve. Thus the remaining is
carried over to the balance sheet.
The EPS of the company is 4.32 increasing from 3.66 last year.
The company has not paid a huge amount as dividend, instead it has kept back the profits. This is an indication that the company wants to take
some expansion project in future.
FINANCIAL ANALYSIS 2: RATIO ANALYSIS
Ratio analysis helps to measure and establish cause and effect relationship between either two items of balance sheet or of profit and loss account or both
balance sheet and profit and loss account . Ratio analysis is a relative and more focused analysis of financial statements.
Ratios are classified according to their functions and objectives. We have classified the ratios under the following categories:
Solvency Ratios
Liquidity Ratios
Profitability Ratios
Du Pont Analysis
Capital Market Ratios
Solvency Ratios
We have analyzed the following solvency ratios

Proprietary Ratio
Debt Equity Ratio or External-Internal Equity Ratio
Long-Term Debt Equity Ratio or Gearing Ratio
Interest Coverage Ratio
Proprietary Ratio
This ratio relates the share holders’ fund to total assets.

The formula for calculating the proprietary ratio is given by:
Proprietary Ratio = Shareholders’ Funds

Total Assets
Proprietary Ratio
Year 2005-2006 2006-2007 2007-2008 2008-2009
Total Shareholders Equity 96386.87 40318.92 52832.34 73819.67
Total Assets 45234.31 42608.98 55898.73 89901.7
Proprietary Ratio 2.130835421 0.946254 0.945144 0.8211154
The higher the proprietary ratio, the better is the long term solvency of the company and the more satisfied the creditors will be. Here, we see that
the proprietary ratio of Dabur India limited has been showing a decreasing trend over the years.
Debt Equity Ratio
This ratio tells how much does the company depend upon its borrowings. A smaller ratio is better as it indicates that the company can raise large
sums as borrowings.
The formula for calculating the debt-equity ratio is given by:
Debt Equity Ratio = Total Debts
Shareholders’ Funds
Debt-Equity Ratio or External-Internal Equity Ratio
Year 2005-2006 2006-2007 2007-2008 2008-2009
Total Debt 2057.52 2007.99 1733.69 13898.25
Net Worth 96386.87 40318.92 52832.34 73819.67
Debt-Equity Ratio 0.021346476 0.049803 0.032815 0.188273
This ratio is very small which shows that in future, the company can do a high leveraging. It presently relies mostly on owners’ funds and very less on
the loans. As such, financial institutions and lenders will be ready to give loans to the company. Ths ratio has been increasing over the years
showing that Dabur India Limited has now started taking loans – both secured and unsecured, but the proportion of these loans is very less as
compared to its proprietors’ funds.
Long Term Debt to Equity Ratio or Gearing Ratio
This ratio measures the extent of assets financed through long term borrowings. A high ratio indicates that the company is highly leveraged and
creditors will not be very sure in lending to the company.
The formula for calculating the long term debt-to-equity ratio is given by:
Long Term Debt to Equity Ratio or Gearing Ratio = Long term Debts
Net Worth
Long Term Debt to Equity Ratio or Gearing Ratio
Year 2005-2006 2006-2007 2007-2008 2008-2009
Total Long term Loans 764.22 433.9 611.29 288.94
Net Worth 96386.87 40318.92 52832.34 73819.67
Long-Term Debt-Equity Ratio 0.007928673 0.010762 0.01157 0.003914
This ratio tells whether the company is relying more on its debts or on its capital in order to finance its operations. We see that this ratio is declining
over the years and is very less. This shows that the company as a policy, doesnot go for loans and is a very cash rich company. It also has high
reserves and surplus. When we see the trend over the past few years, we see that the company has now started taking loans but Is still dependent
on capital only. Thus, the company can raise huge sums as loans in the future.
This ratio measures the capacity of a company to py the interest liability it has incurred on its long term borrowings, out of its cash profits.
The formula for calculating the interest coverage ratio is given by:
Interest Coverage Ratio = PAT + Interest on Long Term Debt + Depreciation

Interest on Long Term Debt
Year 2005-2006 2006-2007 2007-2008 2008-2009
Interest On Long Term Debt 565.87 443.01 845.5 1333.55

PAT + Interest on Long Term Debt +
Depreciation 21379.29 27848.44 35097.97 41430.86
Interest Coverage Ratio 37.78127485 62.86188 41.5115 31.0681
This ratio measures the capacity of a company to pay off its interest liability in long term debts out of its profits. As we see from the above, this ratio,
although decreasing over the years, is quite high. Thus, we can say that Dabur India limited is making sufficient operating profits in order to be able
to cover its interest costs.
Overall Analysis of Solvency Ratios
Over-all Analysis (Solvency Ratios)

Year 2005-2006 2006-2007 2007-2008 2008-2009
Proprietary Ratio 2.130835421 0.946254 0.945144 0.8211154
Debt-Equity Ratio 0.021346476 0.049803 0.032815 0.188273
Long-Term Debt-Equity Ratio 0.007928673 0.010762 0.01157 0.003914
Interest Coverage Ratio 37.78127485 62.86188 41.5115 31.0681

From all these ratios, we see that Dabur India Limited mainly depends upon its proprietary funds. It has very small amount of debts, both long term
and short term, as compared to its capital. As such, the company is highly solvent and can do a very good leveraging in future.
Liquidity Ratios
We have analyzed the following Liquidity ratios

Current Ratio
Liquid/Quick Ratio
Net Working Capital
Operating cash Flow Ratios
Current Ratios
A Current ratio measures the ability of a company to discharge its day-to-day bills, or current liabilities as and when they fall due, out of the cash or
near cash, or current assets that it possesses. It is an important indicator of a company’s current and prospective liquidity position.
Formula for calculation of current ratio is given by:
Current Ratio = Current Assets
Current Liabilities
Current Ratio
Year 2008-2009 2007-2008 2006-2007 2005-2006
Current Assets, loans and
advances 74,504.46 55,281.33 39,641.22 28,436.22
Current Liabilities and Provisions 66,648.91 58,263.48 35,608.47 30,731.00
Current Ratio 1.12 0.95 1.11 0.93
Generally, a low current ratio indicates the potential for a strained liquidity position.
However FMCG companies normally do not have a high current ratio because of the ready and fast conversion of ready and fast conversion of
inventory into cash. Therefore the Current Ratio of Dabur is less than normal.
Another reason for the low ratios is that the company is very conservative and has high provisions (almost 50% of the liabilities) hence increasing the
liabilities and decreasing the ratio. The company has also invested in long term ventures and mutual funds rather than going for short term
investments. Infact, over the past 10 years, it has invested in 27 different mutual funds.
Liquid Ratio
It measures as to how quick is the ability of a company to discharge its current liabilities net of working limits, as and when they fall due,out of cash
or current assets net of inventories that it possesses.
Formula for calculation of liquid ratio is given by:

Liquid Ratio = Current Assets – Inventories – Prepaid Expenses
Current Liabilities
Liquid Ratio
Year 2009 2008 2007 2006
Liquid Assets 25,604.49 16,872.89 11,122.62 6,498.66
Liquid ratio 0.38 0.29 0.31 0.21
Inventory in case of Dabur forms a significant part of current Assets, hence quick ratio is low. A low liquid ratio indicates the potential for a strained
liquidity position.
However, a low liquid ratio does not necessarily mean a bad liquidity position as inventories are not absolutely non-liquid.
Net Working Capital
Formula for calculation of net working capital is given by:

Net Working Capital = Current Assets – Current Liabilities
Net Working Capital

Year 2009 2008 2007 2006
Current Assets, loans and advances 74,504.46 55,281.33 39,641.22 28,436.22
Net Working Capital 7,855.55 -2,982.15 4,032.75 -2,294.78
Net working capital has been up and down in the past 4 years. This is because of the varied bank balance of the company. However, the low net
working capital is also because of the high provisions the company has created.
Net working Capital
10,000.00
8,000.00
6,000.00
4,000.00 Net working Capital
2,000.00
0.00
2006 2007 2008 2009
-2,000.00
-4,000.00
Operating cash Flow Ratio
This ratio signifies how well a company can cover its liabilities though the cash generated from operations.
Formula for calculation of operating cash flow ratio is given by:
Operating Cash Flow Ratio = Cash Flow from Operations
Current Liabilities
Operating Cash Flow Ratio

Year 2009 2008 2007 2006
Cash Flow to Operations 32,357.31 31,329.01 23,442.75 19,434.49
Operating Cash Flow Ratio 0.49 0.54 0.66 0.63
We can again see a downward trend again due to the perishable inventory and high provisions
Overall Analysis of Liquidity Ratios
Over-all Analysis (Liquidity Ratios)

Year 2009 2008 2007 2006
Current Ratio 1.12 0.95 1.11 0.93
Liquid ratio 0.38 0.29 0.31 0.21
Net Working Capital 7,855.55 -2,982.15 4,032.75 -2,294.78
Operating Cash Flow Ratio 0.49 0.54 0.66 0.63
1.20
1.00
0.80
Current Ratio
0.60
Liquid Ratio
Operating Cash Flow Ratio
0.40
0.20
0.00
2006 2007 2008 2009
A major parameter for all the liquidity ratios is the Liabilities that the company has. We can see above that all the ratios are coming out to be less
than normal. This is because the company has high provisions hence increasing the total liability for the company.
Also the Liquid ratios above are extremely low when compared to the Current ratios. This is because the inventory forms a significant part of the
current assets and we know that the inventories are not as liquid. Low net-working capital follows the low current ratios.
Also, the low operating cash flow ratios doesn’t mean that there isn’t enough cash flowing through operations. It is because of the high value of the
denominator i.e. Liabilities.
These unusually low ratios are not just confined to Dabur. This is a general trend all across the FMCG sector.
TURNOVER RATIOS
Financial ratios related to sales or volume, i.e, those ratios which signifies the resources efficiency comes under Turnover Ratios. For example,
accounts receivable turnover, also
known as efficiency ratios and assets turnover, conversion of receivables into cash comes under this category. These measure efficiency of
converting assets into cash. The efficiency with which the assets and resources of a company are utilized in generating operational revenue has a
direct bearing on the top line. It is therefore important for analysts to study the turnover ratios. Five major ratios under this category are:
Fixed Asset Turnover Ratio
Net worth Turnover Ratio
Inventory Turnover Ratio
Debtors Turnover Ratio
Creditors Turnover Ratio
8
4 Fixed Asset Turnover Ratio

Net Worth Turnover Ratio
3
0
2006 2007 2008 2009
The Ratio measures the extent of turnover or volume of gross income generated by the fixed assets of a company or in other words the efficiency
in their utilization.
Formula for calculation of fixed asset turnover ratio is given by:
Fixed Asset Turnover Ratio = Net Sales

Net Block of Fixed Assets
Year 2008-2009 2007-2008 2006-2007 2005-2006
Net Sales 2,39,616.39 2,08,339.60 1,60,042.90 1,34,278.81
Net Block of Fixed Assets 36,003.11 29,443.01 23,904.05 19,883.68
Fixed Asset Turnover Ratio 6.65 7.08 6.70 6.75
The ratio has come down marginally from the last year due to a larger increase in the net block of fixed assets compared to the increase in the net
sales. This indicates that the company is not utilizing its fixed assets well. This is an area of concern for the company as the growth is not very
significant.
The ratio measures the extend of turn over or volume of gross income generated by the net worth of a company. In other words, it is the efficiency in
the resource utilization from the angle of the residual interest, ie. the equity shareholders.
Sales to receivables (or turnover ratio): Net Sales / Accounts Receivable—measure the annual turnover of accounts receivable. A high number
reflects a short lapse of time between sales and the collection of cash, while a low number means collections take longer. It is best to use average
accounts receivable to avoid seasonality effects.
Formula for calculation of net worth turnover ratio is given by:
Net Worth Turnover Ratio = Net Sales
Equity Shareholders’ Funds

Year 2008-2009 2007-2008 2006-2007 2005-2006
Net Sales 2,39,616.39 2,08,339.60 1,60,042.90 1,34,278.81
Equity Shareholders fund or Net Worth 72,955.59 51,437.07 38,337 41,499.39
Net Worth Turnover Ratio 3.28 4.05 4.17 3.23
There is a decrease in net asset turnover ratio this year compared to last year which shows that the company has not been able to utilize all its net
worth appropriately. This is again an area of concern for the company as overall profitability can be increased by utilizing net worth properly.
Inventory Turnover Ratio
Formula for calculation of fixed asset turnover ratio is given by:
Inventory
Inventory Holding Period = ∗365
Cost of goods sold
Inventory Holding Period

76
74
72
70
68
66
64
62
2006 2007 2008 2009
Inventory holding period: 365 / Annual Inventory Turnover—calculate the number of days, on average, that elapse between finished goods
production and sale of product.

Year 2009 2008 2007 2006
Inventory 26,171.64 20,114.69 15,736.94 11,560.90
Cost of goods sold 1,29,319.24 1,09,819.11 82,192.38 61,256.77
Inventory Holding Period 73.86 66.85 69.88 68.88
Inventory holding period has increased by 7 during the last year. This shows poor inventory management during this period. Also the holding period
is increasing over the years from the past data . So the company has to take care its inventory operation. Collection Period and Credit Period
140
120
100
80
Collection period
60 Credit Period
40
20
0
2006 2007 2008 2009
Debtors Turnover Ratio
Sometimes referred to as a collection ratio, the average collection period has to do with the relationship between Accounts Receivable and the time
frame in which those outstanding payments are received. Essentially, the average collection period is a calculation of the average
period it takes for outstanding invoices to be paid in full after issuance The advantage of understanding average collection periods is that the
information allows the company to anticipate cash flow generated by services rendered.
Formula for calculation of debtors turnover ratio is given by:
Recievables
Collection Period= ∗365
Total Sales
Collection Period
Year 2008-2009 2007-2008 2006-2007 2005-2006
Recievables 11,236.01 10,046.43 6,097.87 2,694.25
2,42,367.8 2,11,778.8 1,63,736.1 1,36,968.2
Total Sales 9 6 2 9
Collection period allowed to
Customers 16.92 17.31 13.60 7.17
Though there was a considerable increase in the Collection period allowed to the customers for the past years, the trend changed in the present year
and collection period has decreased from 17.31 days last year to 16.92 days. Still the ratio is low which suggests that the company has managed its
debtors well.
Creditors turnover ratio gives the funding requirements for imports of machinery/ stocks covered by Letters of Credits arranged for up to 180 days .
Formula for calculation of credit period is given by:
Payables
Credit Period= ∗365
P urchases

Year 2009 2008 2007 2006
Payables 35,138.71 31,722.51 27,770.31 19,342.06
Purchases 1,22,243.11 1,02,833.54 76,798.44 57,511.22
Supplier’s Credit Period 104.91 112.60 131.98 122.75
Supplier’s credit days has increased from 112.60 days last year to 104.91 days this year. The collection period is less as compared to the credit
period enjoyed by the company which is in favor of the company. This means that the company has managed its debtors well and the suppliers are
having a high degree of faith in it, it also enjoys a good reputation with the creditors.
Moreover, taking a general trend, collection period is on an increase except for the present year whereas credit period has decreased as compared
to the last year. But since there is a larger difference between both the periods, the company will only have to take care of it in the long-run.
Du Pont Analysis
With Reference To Return on Net Worth
Du Pont Analysis with Reference to RONW
Year 2007-2008 2008-2009
Net Profit Margin 15.20% 15.58%
Net Worth Turnover 4.61 times 3.83 times
RONW 70.10% 59.79%
The RONW has worsened from last year. The reason is because of the worsened Net Worth Turnover. Reserves and Surplus have gone up
substantially but the profit has not grown with the same proportion. Thus the company has to focus more on improving the Resource Efficiency than
the operating margin.
With Reference To Return on Total Assets
Du Pont Analysis with Reference to ROTA
Year 2007-2008 2008-2009
Net Profit Margin 15.20% 15.58%
Total Asset Turnover 4.61 times 3.63 times
ROTA 55.28% 41.15%
The ROTA has worsened from last year. The reason is because of the worsened Total Assets Turnover. Total Assets have gone up substantially but
the profit has not grown with the same proportion. Thus the company has to focus more on improving the Efficiency of assets than the operating
margin. They have made a major investment in assets that are yet to generate sales. Thus in the coming years ROTA is expected to increase.
FINANCIAL ANALYSIS 3: ANALYSIS OF CRUCIAL NOTES TO ACCOUNTS
Note 16 regarding Earnings Per Share under Accounting Standard 20
Earnings per Share has been computed as under 2008-2009 2007-2008

Profit after Tax 37355.27 31677.21
Weighted average number of shares outstanding
Basic 864907642 863635509
Diluted 869156259 869063210
Earning per Share (face value Re. 1 per share)
Basic 4.32 3.66
Diluted 4.3 3.64
Disclosure of BEPS and DEPS on the face of the profit and loss account with equal prominence for both the years is presented in
accordance with para 8 of the AS-20.
BEPS is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year in accordance with para 10 and 11.
DEPS is calculated after adjusting all the effects of all dilutive potential equity shares in accordance with para 26 and 29.
Analysis of EPS Information Disclosed
In case of Dabur, as the weighted average number of shares outstanding is different for both dilute and basic, therefore we are having different value
of BEPS and DEPS even after having the same net profit figure.
Notes 12 and 8 regarding Related Party Disclosures under Accounting Standard 18
Managerial Remuneration under section 198 of the Companies Act,

1956 paid or payable during the year, to the Directors: 31.03.2009 31.03.2008
Salary 232.9 219.2
Commission (as computed below) 0 27.79
Contribution to Provident Fund 27.95 29.66
Residential Accommodation 139.74 131.55
Medical & Leave Travel Benefit 3.47 4.19
Contribution to Superannuation Fund 34.95 43.41
Others (Including Rs. 287.12 Previous year Rs. 297.31 under stock
option Scheme) 780.14 683.07
1219.15 1138.87
Computation of net profit in accordance with Section 198 and section
309 (5) of the Companies Act,1956 and calculation of
Director’s commission
Profit for the year before tax as per Profit & Loss Account 42499.59 36517.59
Add: Managerial remuneration 1219.15 1138.87
Directors fees 10.2 11.12
Provision for doubt full debts 737.82 257.71
Less: Capital Profit 0.95 40
Adjusted net profit 44465.81 37885.29
Maximum permissible remuneration 4891.23 4167.38
Maximum commission payable: 444.65 378.85
Actual commission (To one non whole-time Director) NIL 27.79
Analysis of Disclosures and Managerial Remuneration
The operating results and financial position of a company may be affected by a related party relationship, such as holding, subsidiary
company, associates, joint ventures etc as related parties may enter into transactions which unrelated parties would not.
Disclosure of the names of holding companies and fellow subsidiaries in accordance with para 3(a) and 21 of As-18
Disclosure of the names of whole-time directors in accordance with para 3(d),14 and 21 of AS-18
Disclosure of the nature of transactions separately with holding companies and with fellow subsidiaries as per details furnished in the note in
accordance with para 23.
1.3% of Total Sales to fellow subsidiaries is quite a material-related party transaction.
An equity contribution of Rs. 1,950 lacs is stuck with the subsidiaries.
In comparison to last year loan repayment of Rs. (2,272.28 lacs this year there is nil repayment.
Guarantees & collateral given to subsidiaries is increased by 48.57% to Rs. 5,860.35 this year.
Employee stock option scheme has increased by 35.41% to Rs. 44.24 lacs this year.
The idea is to prevent excessive withdrawal by way of remuneration to whole-time directors, out of the profits generated by the company.
AS 18 also requires a specific disclosure of transactions with the key management personnel which includes disclosure of the amount of
managerial remuneration as well.
The users of financial statements, by reviewing this amount may reach a conclusion regarding its reasonableness in regard to net profits
earned by the company.
The total remuneration paid by Dabur as per note 8 is a figure of 1219.15 lacs against a huge net profit figure of Rs. 42499.59 lacs after
charging such remuneration. This is less than reasonable withdrawal out of the net profits.
Mr. Pradip Burman, a whole time director, voluntarily has foregone his salary and part of service benefits w.e.f. 1st October 2008. Amount
foregone on account of salary and service benefits work out to Rs.37.60 and Rs.7.49 respectively.
Note 22 regarding Segment Reporting under Accounting Standard 17
Based on the guiding principles given in Accounting Standard on Segment Reporting, the company’s primary business segment is Consumer Care
Division(CCD). It addresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health
Care, Home Care & Foods.
Disclosure of types of products in the CCD segment is in conformity with para 58 of the AS.
Disclosure of segment revenue, result assets, liabilities, capital, expenditure, depreciation and other non cash charges on account of
provision for pension and gratuity in conformity with para 40 of the AS.
Segment liabilities disclosed include net deferred tax liabilities despite the requirement of specific exclusion as per the definition of segment
liabilities as given in para 5 of the AS.
The company’s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The company is currently
focused on following business ie Consumer Care business, Consumer Health business and food.
Segment Analysis for the year ended 31-03-09
Segments Capital Employed PAT

Rs. in lacs % of Total Rs. in lacs % of Total
1 Consumer Care Business 33,451.00 45.85 52,099.00 139.47
2 Consumer Health Business 6,295.00 8.63 5,593.00 14.97
3 Food 8,840.00 12.12 5,326.00 14.26
4 Others 3,298.00 4.52 131.00 0.35
5 Unallocated 21,071.00 28.88 -25,793.00 -69.05
Company as a whole 72,955.00 100.00 37,356.00 100.00
45.85% of capital employed in ‘Consumer Care Business’ segment contributing an astronomically high 139.47% of PBT. The
performance of this segment is affected badly by ‘Unallocated’ segment, which has returned a loss on 28.88% of capital employed
therein.
As against this, a high 28.88% of capital employed in ‘Unallocated’ segment, higher than the ‘Consumer Health Business’ segment, but
it contributes a loss of 69.05% of PBT.
8.63% of capital employed in ‘Consumer health Business’ segment is contributing a good figure of 14.97% to PBT.
Reasons are very clear – both in terms of capital turnover efficiency as well as profitability on capital employed – all other segments
analyzed are lagging far behind the ‘Consumer Care Business’ segment.
FINANCIAL ANALYSIS 4: ANALYSIS OF AUDITORS’ REPORT
Analysis of the Auditors’ Report is a Comment on how the auditors’ report acts as a catalyst towards ensuring a better quality of financial
performance and position and reporting thereof and financial discipline. The auditors’ report is divided into 2 parts:
first part expressing the auditors’ view on true and fairness or otherwise of the state of affairs of the company in the case of the balance
sheet and profit in the case of profit and loss account.
Second part comments on fixed assets, inventories, related party transactions, internal audit and control system and outstanding undisputed
statutory liabilities.
The examination of the issues mentioned in these 2 parts and their implications for determining a true and fair profitability and state of affairs of the
company clearly reveal that the auditors’ report acts as a catalyst towards ensuring a better quality of financial performance reporting. Let us look at
each one of them in detail:
First part:
Obtaining information and explanation necessary for audit.

Opinion on maintaining proper books of account.
Assertion about agreement of financial statements with the books of account.
Opinion on the compliance of mandatory accounting standards.
Comment on whether any director of the company is disqualified from being appointed as such as per the norms of the Companies Act.
Assertion about agreement of balance sheet, profit and loss account and cash flow statement with the accounting principles generally
accepted in India.
Second part:
Fixed assets:
 Comment on records of fixed assets.
 Comment on fixed assets’ adjustments between physical verification and records in the accounts and extent thereof.
 Comment on fixed assets disposed off during the year.
Inventories:
 Comment on inventories’ adjustments between physical verification and records in the accounts and extent thereof.
 Comment on the procedures used for the verification of inventories.
 Comment on records of inventories.
Related party transactions
 Comment on loans granted to/taken from companies, firms or other parties in which directors are interested to determine whether
they are prejudicial to the interests of the company or not.
 Comment on the internal control system commensurate with the size of the company and nature of business.
 Comment on contracts or arrangements in the register maintained under section 301 of the Act 1956.
 Comment on the deposits accepted from public.
 Comment on the documents and records maintained for the loans and advances granted.
 Comment on the preferential allotment of shares.
 Comment on creation of securities / charges in respect of debentures issued and outstanding.
 Comments on the company’s regularity in repayment of dues to any financial institution, bank or debenture holder.
 Comments on the absence of disputed due on account of wealth tax and cess.
 Comment on money raised by public issues.
 Comment on the preferential allotment of shares under their ESOP Scheme.
Internal audit:
 Comment on the internal control system commensurate with the size of the company and nature of business.
Outstanding undisputed statutory liabilities
 Comment on the deposits undisputed statutory dues including provident fund, fund, investor education and protection fund, service
tax etc. with appropriate authorities.
FINANCIAL ANALYSIS 5: ANALYSIS OF DIVIDEND POLICY
The company has been very non-uniform and inconsistent in paying dividends to its stakeholders. The Dividend ranges from 50% in 2002 to 250% in
2005. From 2003 onwards Dabur has been paying a dividend over 100% consistently. In 2009, the company paid an interim dividend of 75% (Re.
0.75 per share) on February 10, 2009 and has recommended a final dividend of 100% (Re. 1 per share). So the aggregate dividend for the year
comes our to be 175%, an improvement over the previous financial year (150%).
3 EPS
Dividend Index
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
FINANCIAL ANALYSIS 6: ANALYSIS OF CASH FLOW STATEMENT
Compliance with Accounting Standards
The given cash flow statement is for the year ended 31-Mar-09. AS-3 deals with the cash flow statement. The following disclosures for the same are
met by Dabur India Limited:
The cash flow statement is presented for the same period for which the balance sheet is given. (as at 31-Mar-09)
The cash flow statement clearly classifies the cash flow from operating, investing and financing activities.
The disclosure of cash flow from operating activity is done through indirect method.
All Accounting Policies followed by the company abide by the GAAP and thus are permissible.
Features of Cash Flow Statement
Features of the Cash Flow Statement as presented by the Dabur India Limited are:
The cash flow statement has been prepared for the year ended 31-Mar-09 and thus it covers the effects of all cash transactions of the
previous accounting year.
Comparative Statement –Dabur India Limited has disclosed a comparative position of each element of cash flow statement.
Vertical form of cash flow statement has been used by Dabur India Limited. This model provides following benefits:
 Disclosures for cash inflows and outflows for the different activities: operating, investing and financing at one place.
 Information is available at a glance, enabling quick review and analysis
Dabur India Limited has used indirect method for working out the cash flow from operating activities. The statement starts with ‘Net profit
before tax and extraordinary items’ which has been adjusted for non-cash charges and interest received to arrive at ‘Operating profit before
working capital changes’. This is adjusted with ‘Working capital changes’ to obtain ‘Cash generated from operating activities’. After deducting
interest paid, tax paid and Corporate tax on dividend, ‘Net Cash from Operating Activities’ is obtained. The ‘Net Cash from Investing
Activities’ is obtained by analyzing the Sale and Purchase of Assets and purchase and sale of investments in subsidiaries. The cash flow
from financing activities includes proceeds of share capital and premium, repayment/proceeds of loans and liabilities, dividend to arrive at
‘Net Cash generated in Financing Activities’. The summation of ‘Net Cash from Operating Activities’(A), ‘Net Cash from Investing
Activities’(B) and ‘Net Cash generated in Financial Activities’(C) with the opening balance gives the closing balance of cash and cash
equivalents.
At the bottom of the cash flow statement it has been mentioned that the report is prepared as per our (the Board of Director’s) report of event
date attached. The names of Chairman, two Whole Time Directors, GM (Finance) and Company Secretary are also written.
Activity Wise Analysis
Operating Activities
All of the cash inflows of Dabur India Limited during 2009 have been contributed by operating activities indicating a strong cash position.
Dabur India Limited had a net cash outflow in respect of working capital which is an indicator of inefficient management of working capital.
Net cash from operation up by 3 % indicating strong operational financial performance.
Investing Activities
Dabur India Limited has spent huge sums on purchase of fixed assets which indicate that the company is undergoing expansion and is likely
to produce higher future revenues
It also shows considerable amount of inflow form the sale of fixed assets compared to last year indicating that the company is disposing off
its worn out fixed assets.
Dabur India Limited had significant increase in outflow towards investments in its subsidiaries (up by 34%) indicating that the company’s
future prospects are expected to grow.
For investing activities Dabur India Limited has had a net cash outflow indicating a favorable cash position.
Financial Activities
There has been a decrease in money generated by issuance of shares as compared to last year to the extent of 7.5%
Dabur India Limited has had substantial net outflow in respect of repayment of borrowings indicating its strong cash position.
It has also shown huge sums of borrowings and keeping in account the strong financial position if the company, it is not clear why the company has
engaged into borrowings.
Dividend payment has increased by 95% in the year indicating a very strong desire to maintain the goodwill of the company in the market. It also shows
that the company is making huge profits.
Quality of Cash Position
The information provided by the cash flow statements of Dabur India Limited appears to indicate a high quality of cash position. The reasons are
simple and more than clear. It has been generating cash from operating activities and utilizing this money in expanding its business and in paying
dividends.
However, nearly 50% of the cash flow from operations is as a result of profit from sale of fixed assets and FCCB currency fluctuation profits which is
unsustainable income. Dependence on this income can prove detrimental for the company.
Ability to Generate Positive Cash Flows from Operations in Future
Dabur India Limited has generated cash from operations in both the years. The amount, though increased this year, is marginally higher than last
year. Information provided by its profit and loss account establishes that almost all of the cash flow form operations in the current year is as a result
of sale of finished goods. This indicates that the company has a good ability to generate cash in the future also. Given the huge amounts of money
spend on expanding the business, its revenues are only expected to increase in future.
FINANCIAL ANALYSIS 7: ANALYSIS OF CAPITAL MARKET VALUATION
To analyze the capital market valuation of Dabur India Limited, we have considered the following ratios:
Earnings Per Share(EPS)

Price Earnings Ratio(P/E Ratio)
Market Capitalization
Earnings Per Share(EPS)
EPS of peers in 2009

25
21.34 Earnings per Share of Dabur
20 5
4.5 4.32
15 4 3.67
11.47 3.3
3.5 2.92
10 3
6.29
4.32 2.5
5 2
1.5
0 1
Dabur Hul Colgate Godrej 0.5
0
2005-06 2006-07 2007-08 2008-09
In the FY 07 the PAT has gone from 18,908.37 lacs to 25,207.63 lacs. But the EPS has gone down because there has been an issue of bonus
shares by the company. The company issued bonus shares in the ratio 1:2, thus the no of Equity shares of the co has increased from 573302784 to
862883808 in FY07. Thus the Reserves and Surplus have also gone down. The bonus issue also resulted in the market price of a Dabur India
Limited share come down during that year from 140 to 95(appx). The company wanted to boost the confidence of the investors towards the
company and indicating to the market that the company has strong fundamentals. However even after one year in Dec 07 the share price of the
company could reach 110, even when the markets were in a bullish run. One of the reasons of the damp reaction by the market could be the
stagnant dividend the co. issued to the shareholders compared to its peers like HUL. The EPS for 2009 shows that the EPS of Colgate is very high
compared to Dabur and HUL. But the PAT of Dabur is more than Colgate. One of the main reasons is that the no of issued shares of Colgate is very
less compared to Dabur.
Price Earnings Ratio (P/E Ratio)
PE Ratio Comparison
40 37.32
34.6 34.6
35
30 29.16
23.48 24.44
25
20
15
10
5
0
Dabur HUL Godrej P&G Marico Ltd Colgate
PE ratio of these companies is dated 25 th aug,09. The PE ratio changes every day as the stock price fluctuates. PE is a much better comparison of
the value of a stock than the price. For example P & G has a stock price of 1170 while Dabur has a stock price of 140. However since the PE of
Dabur is more than P & G it can be considered a more expensive stock. Since Dabur has a higher PE than P&G it can be expected to grow and
have higher earnings in the future. Dabur’s PE is larger than HUL which is a bigger company by market Cap, Pat etc but the PE indicates that
comparatively investors confidence in Dabur is no less than HUL.
The industry PE is 26.70. This means Dabur is outperforming the industry PE and is a higher valued stock than most of the other companies in the
same industry.
The PE ratio of a company may also become low if it reports higher earnings. However in the long run the PE ratio will rise as the higher earnings
will increase the market sentiment, thereby increasing the market share eventually.
Market Capitalization
Market Cap (in Rs. Cr)

70000
60000
50000
40000
30000
20000
10000
0
Dabur Colgate godrej HUL
Market capitalization is an important indicator because it may happen that the share price of a company is low compared to its peers. However it
might so happen that the company has issued a very large number of equity shares compared to the other company. Thus market capitalization
gives us an idea of the size of the company which is decided by the public trust and investments in the company. The share price of Dabur is around
140 while the share price of colgate is around 600. But the no of shares issued of Dabur is 8650.76 lacs and the no of shares issued of colgate is
1360 lacs, thus we see that there is a huge difference in the no of shares issued by both the company. Therefore market capitalization gives a more
realistic idea of comparison of the companies rather than only share price. HUL has issued around 21800 lacs equity shares and its share price is
around 280, thus it has a very high market capitalization. It comes in large caps companies while Dabur is comparatively a smaller company.
Yield to Investors
Following is the formula used to calculate the yield to investors:
Yield to investors = Divident Per Share + Market Appreciation
Initial Investment
Yield to investors
Year 2008-2009
Divident Per Share 1.75
Market Appreciation 8.50
Yield to Investors 6.83%
Thus we see that there has been a negative yield to investors. The main reason is because of the crash in the stock markets due to the global
recession. Dabur’s share has fallen almost by 9%. . During the same period the sensex has fallen from 15626 points to 9708 points which means it
has fallen almost 38%. Therefore we can conclude that the Dabur Share has shown strong resilience even when the markets were not performing
well.
ANALYSIS OF CORPORATE GOVERNANCE REPORT
Compliance with clause 49 of the Listing agreement
It Dabur India has technically complied with all the requirements mentioned in the clause. Its adherence to the standard practices and
following of the laid down rules is welcome and desirable for a company which is 150 years old.
The company should have furnished more information about the qualifications of the board of directors. should have given more information
about the management principles that are followed by company management apart from the code of conduct. The key skill area needed for
the directors have been mentioned which gives an idea of the desired qualification but the company should have mentioned the
qualifications as well.
The roles and scope of the board of directors and various committees are clearly spelt out.
Analysis of the Management Discussion and Analysis Report requirements
The company has given clear data of the related party transactions and for the last 3 years complied with the all the disclosure norms as needed by
SEBI
The Section on Management Discussion and Analysis could have been precise giving point to point information in the same or in a separate
section.
A separate heading mentioning the noncompliance of the company has been given which shows the company’s intent to openly accept the
short falls if any.
The company has adequate internal control system wherein the compliance of various standards can be enforced effectively. This is
reflected in the roles assigned to various board committees and its risk management structure.
Analysis of the implications of the information provided
Bringing transparency in the corporate affairs particularly at the board level.
There are zero shareholders grievances in 2009 which indicates the fast resolution of complaints by the company.
Shareholders are kept updated about company’s performance and related matters regularly and the necessary data is available easily.
The company’s sincerity towards ethics is reflected clearly in the section where whistle blower policy and the policy for prevention of insider
trading have been mentioned. It shows company’s low tolerance for malpractices.
The company has strived to be a responsible citizen as mentioned in the section for the policy for environment control and reduction of
pollution, and policy for occupational health & safety.
The frequency of the AGM which in this case if 1per year, is a good indication of the company’s overall health.
The company has given a section I the report where it specifically points out the point tot point compliance with the requirements of the
clause 49.
The company strives to boost investor confidence.
Recommendations to the management n the strategic issues
The company must enforce all the non-mandatory requirements apart from the mandatory ones
ANALYSIS OF DIRECTORS’ REPORT
The report’s content are summarized hereunder:
Financial Results
Dividend
Acquisitions
Corporate Governance
Directors
Director’s Responsibility Statement
Change in capital structure and listing of shares
Auditors and their report
Cost auditors
Consolidated financial statements
Internal control system
Fixed Deposits
Nature of business
Subsidiaries
Employee Stock option plan
Conservation of Energy, Technology, Absorption, Foreign Exchange Earnings and Outgo
Group for interse transfer of shares
Health Safety and Environmental Review
Quality Review
Awards & Recognitions
Industrial Relations
Acknowledgements
Dabur has complied with all the requirements under section 217 of the companies act. Some useful additional information, for example, ‘ Health
Safety and Environmental Review’ and ‘Quality Review’ has also been provided.
SWOT ANALYSIS
Strengths
Financials: Turnover increased 15.5%, PAT increased by 18%,dividend risen to 175% to 150% last year, proposed acquisition of FEM Care
Pharma Limited (FEM), a FMCG Company listed on Bombay Stock Exchange, well placed, proper and adequate internal control system.
Successful introduction of a host of a new product.
Good communication strategies with a host of brand ambassadors.
40% increase in revenue in international business.
Good rate of growth of health division.
20% growth rate in consumer health division.
Dabur red toothpaste became a 100 cr. Brand
Weakness
Loss on newly launched retail venture NEWU

Oral care segment reported a growth rate of only 4.8%
Opportunities
High demand growth in FMCG sector

Increased penetration of FMCG products in rural market
New opportunities in overseas market
Threats
Slowdown in economy
Mounting cost pressure
Sharp currency fluctuations
Slowdown in organized retail sector
Inflationary environment in the country
BRIEF WRITE-UP ON THE SECTOR AND FUTURE PROSPECTS OF THE COMPANY
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC
presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and
low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive
advantage.
There is a huge growth opportunities for companies like Dabur, HUL. Indian rural markets present huge opportunities. The rising rural and semi-
urban income levels coupled with massive advertisement of FMCG products in the electronic media will spread so much of awakening in the rural
and semi-urban folks towards fast moving consumer goods products so much that these will enlarge their affordability for them.
However, apart from all the opportunities there are various risk involved in the sector. Dabur must foresee all the risks and plan its operations
accordingly. The rural and semi-urban demand of FMCG products will grow larger and higher, it will put a severe pressure on the margins of
manufacturers of FMCG products because of cut-throat competition.
One of the risks faced by companies in FMCG is continued economic slowdown and worsening of macro economic indicators which can impact the
spending power of consumers and put pressure on their incomes and consumption. A poor monsoon if it happens can impact rural incomes and
dampen rural consumption and spends. Increase of imitation/fake product can hamper Dabur’s growth. Any unexpected change in regulatory
framework which may impact parts of the business of Dabur is also one of the risks faced by the company.
In view of the Swot analysis done we conclude that Dabur has managed its operations very efficiently and has shown high growth rate despite of
being faced an economic slow down situation. The company’s new products have shown immense potential to do well in the market while the
Dabur’s management is also committed to pursue higher growth rates in future. The company has maintained a Risk register which is reviewed
periodically by senior management. Thus the risks can be minimized if action is taken immediately. The companies segments like consumer care
division, health division, international division are also showing good signs of growth. The company is also marketing its products in the rural sector
which gives the company an added advantage. However the company needs to shell out more dividends or issue bonus shares to make the share
more attractive for investors. This along with the improving Indian consumer market also presents immense opportunities to Dabur to increase its
operations and compete wit HuL and try to bridge the gap between them.

Financial Ananlysis of Dabur India Limited

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DaburAmlaKeshTelGulabariHajmolaV

Analysis of Profit and Loss Account............................................................................................................25

Financial Analysis 6: Analysis of Cash Flow Statement.....................................................................................55

The major groups and subsidiaries of Dabur are:

Timeline of major milestones in the history of Dabur

1986 Public Limited Company

1996 3 separate divisions

2000 Turnover of Rs.1,000 crore

2008 Acquires Fem Care Pharma

Key Product Lines

Health Care Personal Care Oral Care

Dabur Chyawanprash Hair Care Oil Dabur Red Toothpaste

Skin Care Consumer Health Foods Home Care

List of people in board of directors

Chairman: Dr. Anand Burman

Vice Chairman: Mr. Amit Burman

The Details of the shareholding pattern are as under:

As on March 31, 2009

ENCLOSURE ON THE OPERATING PERFORMANCE OF THE COMPANY

The below mentioned brands contribute a value close to $8Bn to Dabur.

Brands Market Share

Vatika hair Oil 8.5%

herbal Digestives 90%

Key Raw Materials

Raw material 2008-2009 2007-2008 2006-2007 2005-2006

Segment 2009 2008 2007 2006

Honey. 116.88 106.61 85.56 78.14

Sales- Domestic or Export

Year Domestic Sales Export Sales

RONW(Return on Net Worth)

Ten Year figures at a Glance (2000-2009)

PBT (Profit before Tax)

PAT (Profit after Tax)

EPS and Dividend

Analysis of Balance Sheet

Horizontal Balance Sheet (Comparison 2008 and 2009)

Fixed assets of Dabur

Investments FY 08- 270 crores, FY 09- 437 Crores

Current Assets, loans and advances

Deferred tax assets and liabilities

Change in Capital Structure and Listing of shares

Reserve and Surplus:

Horizontal Profit & Loss Account (Comparison 2008 and 2009)

We have analyzed the following solvency ratios

This ratio relates the share holders’ fund to total assets.

Proprietary Ratio = Shareholders’ Funds

Year 2005-2006 2006-2007 2007-2008 2008-2009

Total Shareholders Equity 96386.87 40318.92 52832.34 73819.67

Total Assets 45234.31 42608.98 55898.73 89901.7

Proprietary Ratio 2.130835421 0.946254 0.945144 0.8211154

Debt Equity Ratio

Debt-Equity Ratio or External-Internal Equity Ratio

Year 2005-2006 2006-2007 2007-2008 2008-2009

Total Debt 2057.52 2007.99 1733.69 13898.25

Net Worth 96386.87 40318.92 52832.34 73819.67

Debt-Equity Ratio 0.021346476 0.049803 0.032815 0.188273

Long Term Debt to Equity Ratio or Gearing Ratio

Long Term Debt to Equity Ratio or Gearing Ratio

Year 2005-2006 2006-2007 2007-2008 2008-2009

Total Long term Loans 764.22 433.9 611.29 288.94

Net Worth 96386.87 40318.92 52832.34 73819.67

Long-Term Debt-Equity Ratio 0.007928673 0.010762 0.01157 0.003914