This document provides an introduction and background about Dabur India Limited. It discusses the origin and growth of the company since it was founded in 1884. It provides an overview of Dabur's current structure, including its major business divisions and subsidiaries. It also lists the company's board of directors and shareholders. Finally, it includes enclosures about Dabur's market share and performance, key raw materials, and sales mix by product segment.

1. Page 1 of 93
A
Summer Training Project Report on
STUDY OF FINANCIAL STATEMENT
ANALYSIS OF DABUR INDIA LTD.
Submitted towards the partial fulfillment of requirement of
MASTER OF BUSINESS ADMINISTRATION
Mahamaya Technical University, Noida.
2012-2014
SUBMITTED TO:
SUBMITTED TO:
Mrs. Preeti
Assist. Prof.
Management Department
VENKATESHWARA INSTITUTE OF TECHNOLOGY, MEERUT
MAHAMAYA TECHNICAL UNIVERSITY, NOIDA

2. Page 2 of 93
To Whom So Ever It May Concern
This is to certify that Rohit Tyagi has prepared a summer training based project
report on the title ‘STUDY OF PROMOTIONAL AND MARKETING
STRATEGY OF AIRTEL LTD.’ for the partialfulfillment of Post Graduate
Diploma In Marketing Management approved from Mahamaya Technical
University, Noida.
To the best of our knowledge the matter presented in project report is satisfactory
and we wish her success in her future endeavor.
(Head of the Department)
Mr. Anurag
(Project Supervisor)
Mrs. Preeti

3. Page 3 of 93
DECLARATION
I, hereby declare that the research work presented in the summer training based
project report entitled, ‘STUDY OF PROMOTIONAL AND MARKETING
STRATEGY OF AIRTEL LTD.’ for the partial fulfillment for the award of
MBA from MahamayaTechnical University is based on my original research work.
The project report embodies the result of original work and studies carried out by
me and the content of the project do not from the basis for the award of any other
degree to me or to anybody else.
Date………….
Place

4. Page 4 of 93
SR. NO
1.
PARTICULAR
PAGE NO
INTRODUCTION OF FINANCIAL MANAGEMENT.
6.
2.
CONCEPTUAL FRAMEWORK OF WORKING
CAPITAL MANAGEMENT.
20.
3.
LITTERARURE REVIEW.
51.
4.
RESEARCH METHODOLOGY.
56.
5.
ABOUT THE GEAR INDUSTRY.
65.
6.
INFORMATION ABOUT THE POWER BUILD
LIMITED.
75.
7.
ANALYSIS OF OPERATING CYCLE OF POWER
BUILD LIMITED.
91.
8.
98.
9.
10.
ANALYSIS OF WORKING CAPITAL MANAGEMENT
OF POWER BUILD LIMITED
FINDINGS.
CONCLUSION.
122.
123.
11.
BIBLIOGRAPHY.
125.
12.
ANNEXURES
127.

5. Page 5 of 93
Chapter 1
INTRODUCTION
Brief Background
Dr. S.K. Burm an 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)
Consumer Health Division
(CHD)
International Business
Division (IBD)
Dabur International
Dabur Nepal Pvt Ltd (Nepal)
Dabur Egypt Ltd (Egypt)
Asian Consumer Care (Pakistan)
African Consumer Care (Nigeria)
Naturelle LLC (Ras Al KhaimahUAE)
Weikfield International (UAE)
Jaquline Inc. (USA)
Asian Consumer Care
(Bangladesh)
Fem Care Pharma
Newu

6. Page 6 of 93
INTRODUCTION TO DABUR INDIA LIMITED
Dabur India Limited is the fourth largest FMCG Company in India with interests in Health care, Personal
care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur
has a turnover of Rs.1536.95 Cr. with powerful brands like Dabur Chyawanprash, Dabur Amla, Vatika,
Hajmola and Real.
ORIGIN & GROWTH
The brief history and growth of Dabur India Ltd. in chronological order:
1884 - The birth of Dabur in a small Calcutta pharmacy, where Dr. S. K. Burman launches his mission
of making health care products.
1896 - Setting up a manufacturing plant: With the growing popularity of Dabur products, Dr. Burman
expands his operations by setting up a manufacturing plant for mass productions of formulations.
Early 1900s - Dabur enters the specialized area of Nature based Ayurvedic Medicines, for which
standardized drugs are not available in the market. 1919-The need to develop scientific processes and
quality checks for mass production of traditional Ayurvedic medicines leads to establishment of
research laboratories.
1920- Dabur expands further with new manufacturing units at Daburgram and Narendrapur. The
distribution of Dabur products spreads to other states like Bihar and the North-East.

7. Page 7 of 93
1936- Dabur becomes a full-fledged company- Dabur India (Dr. S. K. Burman) Pvt. Ltd.
1972- Dabur’s operations shift to Delhi. A new manufacturing is set up in temporary premises in
Faridabad, on the outskirts of Delhi.
1979- Commercial production starts in the Sahibabad factory of Dabur, one of the largest and best
equipped production facilities for Ayurvedic medicines. Launch of full fledged research operations the
pioneering areas of healthcare with establishment of the Dabur Research Foundation.
1986- Dabur becomes a Public Limited Company. Dabur India comes into being after reverse merger
with Vidogum Limited.
1992- Beginning a new chapter of strategic partnerships with international businesses, Dabur enters into a
joint venture with Agrolimen of Spain. This new venture is to manufacture and market confectionary
items in India.
1993- Dabur enters a specialized health care area of cancer treatment with its oncology formulation
plant at Baddi in Himachal Pradesh.
1994- Dabur India Ltd. raises its first public issue. Due to market confidence in the Company, shares
issued at a high premium are over subscribed 21 times.
1995- Extending its global partnerships, Dabur enters into joint ventures with Osem of Israel for food
and Bongrain of France for cheese and other dairy products.
1996- For better operation and management, 3 separate divisions created according to their product mixHealth Care Products Division, Family Products Division and Dabur Ayurvedic Specialties Limited.
1997- Dabur enters full scale in the nascent processed foods market with the creation of the Foods
Division. Project STARS (Strive to Achieve Record Successes) is initiated to give a jump start to the
company and accelerate its growth.
1998- With changing demands of business and to inculcate a spirit of corporate governance, the Burman

8. Page 8 of 93
family induct professionals to manage the company. For the first tome in the history of Dabur, a nonfamily professional CEO sits at the helm of the Company.
2000- Dabur establishes its market leadership status with a turnover of 1,000 Crores. From a small
beginning and upholding the values of its founder, Dabur now enters the august league of large corporate
businesses.
2005- Dabur acquires Balsara’s hygiene and home product businesses in an Rs 143 crore all-cash deal.
DABUR AT PRESENT
Leading consumer goods company in India with 4th largest turnover of Rs.1536 Crores
(FY04).
2 major strategic business units (SBU) - Consumer Care Division (CCD) and Consumer
Health Division (CHD).
3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International and
3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh,
African Consumer Care in Nigeria and Dabur Egypt.
13 ultra-modern manufacturing units spread around the globe.
Products marketed in over 50 countries.
Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and
over 1.5 million retail outlets all over India
Consumer Care Division: dealing with FMCG Products relating to Personal Care and Health Care.
Leading brands Dabur - The Health Care Brand
Vatika-Personal Care Brand
Anmol- Value for Money Brand
Hajmola- Tasty Digestive Brand
and Dabur Amla, Chyawanprash and Lal Dant Manjan with Rs.100

9. Page 9 of 93
Crore turnover each
Vatika Hair Oil & Shampoo the high growth brand
Strategic positioning of Honey as food product, leading to market leadership
(over 40%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.
Leader in herbal digestives with 90% market share
Hajmola tablets in command with 75% market share of digestive tablets
category
Dabur Lal Tail tops baby massage oil market with 35% of total share
Real juices enjoy a market share of over 55% in fruit juice category.
Consumer Health Division: dealing with classical Ayurvedic medicines.

10. Page 10 of 93
Dabur Segments / Brands:
Hair oils
Dabur Amla
Vatika
Health supplements
Chyawanprash
Honey
Glucose
Foods
Real
Activ
Twist
Toothpastes
Red
Babool
Meswak
Promise

11. Page 11 of 93
Toothpowders
Lal Dant Manjan
Digestives
Hajmola
Pudin Hara
Baby & skin care
Lal Tail
Board of Directors:
Gulabari

12. Page 12 of 93
Dr. Anand Burman
Chairman
Mr. Amit Burman
Vice-Chairman
Mr. P D. Narang
Director
Mr. Sunil Duggal
Director
Mr. Pradip Burman
Director
Mr. Mohit Burman
Director
Mr. Bert Peterson
Director
Dr. S. Narayan
Director
Mr. Analjit Singh
Director
Mr. R C Bhargava
Director
Mr. P N Vijay
Director
Mr A K Jain
Addl. GM (Finance) & Company Secretary
Auditors
M/s G. Basu & Co.
Chartered Accountants
Internal Auditors
Price Waterhouse Coopers Pvt. Ltd.

13. Page 13 of 93
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
2009
Acquires Fem Care Pharma
Key Product Lines
Health Care
Dabur Chyawanprash
Dabur ChyawanPrakash
Dabur Chyawan Junior
Dabur Honey
Dabur Glucose-D
Skin Care
Uveda Complete
Fairness Cream
Uveda Moisturising Face
Wash
Uveda Clarifying Face
Wash
Gulabari Rose Water
Gulabari Face Freshener
Gulabari Moisturising
Cream
Gulabari Moisturising
Lotion
Personal Care
Hair Care Oil
Amla Hair Oil
Amla Flower Magic
Vatika Enriched Coconut Hair Oil
Vatika Enriched Almond Hair Oil
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
Consumer Health
Pudin Hara
Active Antacid
Honitus Cough Syrup
Honitus Lozenges
Dabur Badam Oil
Super Thanda Oil
Shilajit Gold
Dabur Lal Tail
Dabur Janma Ghunti
Dabur Gripe Water
Active Blood Purifier
Dabur Balm Strong
Foods
Real
Real Activ
Burrst
Hommade
Lemoneez
Capsico
Oral Care
Dabur Red Toothpaste
Babool Toothpaste
Meswak Toothpaste
Promise Toothpaste
Babool Mint Fresh Gel
Home Care
Dazzl
Sanifresh Shine
Odomos
Odonil
Odopic

14. Page 14 of 93
List of people in board of directors
Chairman:
Dr. Anand Burman
Vice Chairman:
Whole Time Directors
Mr. Amit Burman
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
Mr. Mohit Burman
Non Whole Time Promoters,
directors
Shareholding Pattern
The Details of the shareholding pattern are as under:
Particulars
Directors, promoters and
family members
FIIs
Mutual Funds
Insurance companies
NRIs
Corporates
Individuals
Total
No. of
share
Holders
28
118
64
27
2764
1303
100492
104796
As on March 31, 2010
% of Share
No. of Shares
Holders
Held
% ofShare
Holding
0.03%
611834473
70.73%
0.11%
0.06%
0.03%
2.64%
1.24%
95.89%
100%
74278471
31121682
88968460
4260203
5011529
49601431
865076249
8.59%
3.60%
10.28%
0.49%
0.58%
5.73%
100.00%

15. Page 15 of 93
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%
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

16. Page 16 of 93
Key Raw Materials
Raw material
2010-11
2009-10
2008-09
2007-08
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
164.2
149.56
110.51
84.79
Chemicals
&
Perfumery
Compounds
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.

17. Page 17 of 93
Sales Mix
Segment
2010
2009
2008
2007
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
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.

18. Page 18 of 93
Sales- Domestic or Export
Year
Domestic Sales
Export Sales
2007
132,454.64
4,513.65
2008
170,549.27
7,253.16
2009
201,293.09
10,485.77
2010
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.
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.

19. Page 19 of 93
Peer Comparison
RONW
RONW
2010
51.2%
116.7%
25.9%
112.8%
Dabur
HUL
ITC
Nestle
2009
61.6%
115.5%
25.9%
98.9%
2008
65.8%
56.5%
25.2%
81.0%
2007
45.4%
58.7%
23.3%
87.4%
140.0%
120.0%
100.0%
80.0%
Dabur
HUL
60.0%
ITC
40.0%
Nestle
20.0%
0.0%
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.

20. Page 20 of 93
Profit Margins
2010
15.6%
12.2%
22.4%
12.4%
Dabur
HUL
ITC
Nestle
Profit Margins
2009
15.2%
12.6%
22.2%
11.8%
2008
14.2%
12.7%
23.3%
11.2%
2007
13.8%
12.2%
24.0%
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%
15.0%
10.0%
5.0%
0.0%
Dabur
HUL
ITC
Nestle

21. Page 21 of 93
Return on Assets
Dabur
HUL
ITC
Nestle
2010
41.2%
96.7%
24.3%
104.5%
Return on Assets
2009
55.3%
107.8%
24.3%
92.0%
2008
56.5%
55.1%
24.0%
77.8%
2007
38.9%
57.3%
21.6%
84.0%
120.0%
100.0%
80.0%
60.0%
40.0%
Dabur
HUL
ITC
Nestle
20.0%
0.0%
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
Trend Analysis
(On Next Page)

22. Page 22 of 93
Ten Year figures at a Glance (2000-2010)
Sales & Other Income
Index
PBDT
Index
PBT
Index
PAT
Index
Equity Paid-Up
Index
Gross Block
Index
Net Working Capital ( Incl. Def. Tax)
Index
Current Assets ( Incl. Def. Tax)
Index
Current Liabilities and Provisions ( Incl. Def. Tax)
Index
Total Assets/Liabilities (excl Reval & W.off)
Index
Net Worth
Index
Capital Employed
Index
Book Value (Unit Curr)
Index
Market Capitalisation
2000
1044.48
1.00
102.59
1.00
81.29
1.00
77.66
1.00
28.52
1.00
359.21
1.00
304.01
1.00
412.23
1.00
108.22
1.00
710.24
1.00
320.04
1.00
609.06
1.00
11.22
1.00
2336.50
2001
1130.43
1.08
107.62
1.05
85.16
1.05
77.63
1.00
28.52
1.00
362.12
1.01
235.32
0.77
392.85
0.95
157.53
1.46
708.45
1.00
362.20
1.13
558.30
0.92
12.70
1.13
1736.87
2002
1119.32
1.07
96.50
0.94
75.51
0.93
65.03
0.84
28.56
1.00
376.50
1.05
242.32
0.80
407.67
0.99
165.35
1.53
775.41
1.09
400.37
1.25
613.54
1.01
14.02
1.25
1587.94
2003
1168.54
1.12
117.58
1.15
95.54
1.18
84.92
1.09
28.52
1.00
297.18
0.83
190.31
0.63
406.45
0.99
216.14
2.00
734.85
1.03
411.10
1.28
521.11
0.86
14.38
1.28
1026.02
2004
1094.31
1.05
129.19
1.26
113.44
1.40
101.20
1.30
28.52
1.00
268.16
0.75
-24.30
-0.08
219.89
0.53
244.19
2.26
546.06
0.77
268.65
0.84
308.46
0.51
9.39
0.84
2251.75
2005
1238.20
1.19
182.11
1.78
165.01
2.03
148.01
1.91
28.51
1.00
317.46
0.88
-81.66
-0.27
253.35
0.61
335.01
3.10
715.90
1.01
338.07
1.06
386.70
0.63
11.80
1.05
3179.04
2006
1365.13
1.31
233.91
2.28
214.86
2.64
189.08
2.43
28.51
1.00
328.23
0.91
-38.35
-0.13
285.68
0.69
324.03
2.99
759.60
1.07
447.87
1.40
468.44
0.77
7.81
0.70
7106.05
2007
1619.74
1.55
306.20
2.98
284.22
3.50
252.08
3.25
28.51
1.00
404.30
1.13
19.06
0.06
397.78
0.96
378.72
3.50
782.17
1.10
403.19
1.26
423.27
0.69
4.67
0.42
8193.24
2009
2112.76
2.02
390.92
3.81
365.17
4.49
316.77
4.08
28.50
1.00
467.94
1.30
-33.09
-0.11
576.82
1.40
609.91
5.64
1141.62
1.61
528.32
1.65
545.66
0.90
6.11
0.54
9495.36
2010
2439.22
2.34
452.42
4.41
425.00
5.23
373.55
4.81
28.48
1.00
518.77
1.44
71.61
0.24
768.57
1.86
696.96
6.44
1565.50
2.20
738.20
2.31
877.18
1.44
8.53
0.76
8538.54

23. Page 23 of 93
Index
EPS (annualised) (Unit Curr)
Index
Dividend (annualised%)
Payout (%)
Payout (%)
ROG-Net Worth (%)
ROG-Net Sales (%)
1.00
2.61
1.00
100.00
38.26
60.99
22.38
13.97
0.74
2.62
1.00
100.00
38.17
49.01
13.17
10.67
0.68
2.23
0.85
50.00
22.45
22.45
10.54
-0.41
0.44
2.86
1.09
140.00
49.01
38.17
2.68
5.11
0.96
3.28
1.26
200.00
60.99
38.26
-34.65
-6.59
1.36
4.83
1.85
250.00
51.79
29.31
25.84
13.27
3.04
3.05
1.17
250.00
57.32
23.00
32.48
9.51
3.51
2.72
1.04
175.00
51.98
19.93
-9.98
19.19
4.06
3.41
1.31
150.00
43.97
24.85
31.04
30.18
3.65
4.02
1.54
175.00
43.53
35.83
39.73
15.01

24. Page 24 of 93
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%.
Sales
3000
2500
2000
1500
Sales
1000
500
0
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 nonoperating income.

25. Page 25 of 93
PBT
500
450
400
350
300
250
PBT
200
150
100
50
0
PAT (Profit after Tax)
PAT has also shown an upward trend as it directly follows the PBT figures.
PAT
450
400
350
300
250
200
PAT
150
100
50
0
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

26. Page 26 of 93
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
5
4
3
2
1
0
EPS
Dividend Index

27. Page 27 of 93
OBJECTIVES
The objective of my report is to analyze of financial statements focusing on ratios in Dabur India
Ltd. as well as to analyze comparison of financial ratios w.r.t. its competitors for three years. The
nature of my research is EXPLORATORY. Its goal is to shed light on the real nature of process.
It involves a number of steps: -

28. Page 28 of 93
RESEARCH METHODOLOGY
SOURCES OF DATA:
1. Primary Data: Primary data for constructing the research instrument was collected through
a customer survey.
2. Secondary data: Resources like Business magazines, Internet and Prowess database were
utilized for gathering secondary information. The study was based on data collected from
secondary sources. These data comprises of the financial reports of Dabur India Ltd., 2007 TO
2011.
These data were obtained from annual reports as well as from the website. Secondary
sources consist of: Company’s balance sheets of the last three years.
Company’s income statements of last three years.
The methodologies adopted for calculating different ratios are as per the standard suggested by
different cost as well as financial management book.
3. Research methodology
Data source:
Collection of data from the annual reports of and by the portals and magazines.
Research approach:
Data can be collected in many ways and I have used the following steps to analyze the data .
Collection of information:
After the above steps, I have collected all informations from different sources i.e. Annual
reports and from the other sources provided by Dabur India Ltd.,

29. Page 29 of 93
4. Analysis of Information:
This step involves the extractions of findings from the collected data. I drew some facts after
analyzing the information.
5. Conclusion and suggestion:
As the last step I have mentioned the conclusion and suggestions that are relevant to make the
financial statements of Dabur India Ltd.
The objective of my report is to analyze of financial statements focusing on ratios in Dabur India
Ltd. as well as to analyze comparison of financial ratios w.r.t. its competitors for three years. The
nature of my research is EXPLORATORY. Its goal is to shed light on the real nature of process.
It involves a number of steps: Define the process and research objective.
Develop the research plan: - The second stage of research calls for developing the most efficient
plan for gathering the needed information. Designing the research plan calls for decision on data
sources and research approach
Data Analysis: - I have used tool i.e. MS EXCEL to analyze the data and draw relevant
inferences.

30. Page 30 of 93
DATA ANALYSIS
FINANCIAL ANALYSIS I: ANALYSIS OF BALANCE SHEET AND
PROFIT AND LOSS ACCOUNT
Analysis of Balance Sheet
Horizontal Balance Sheet (Comparison 2009 and 2010)
Increase/Decrease over
2009
(Rs. In
lakhs)
%age
2010
(Rs. In
lakhs)
2009
(Rs. In
lakhs)
SOURCES OF FUNDS :
Shareholder's Funds
Share Capital
Reserves Total
Total Shareholder's Funds
Loan Funds:
Secured Loans
8,650.76
65,168.91
73,819.67
8,640.23
44,192.11
52,832.34
10.53
20,976.80
20,987.33
0.12
47.47
39.72
825.56
1,644.72
(819.16)
Unsecured Loans
Deferred tax Liability
Total Liabilities
13,071.69
3,048.50
90,765.42
88.97
2,727.97
57,294.00
12,982.72
320.53
33,471.42
(49.81)
14,592.2
4
11.75
58.42
57,048.09
21,044.98
36,003.11
43,689.59
2,353.09
48,419.78
18,976.77
29,443.01
27,037.13
2,400.74
8,628.31
2,068.21
6,560.10
16,652.46
(47.65)
17.82
10.90
22.28
61.59
(1.98)
26,171.64
11,236.01
14,368.48
22,728.33
74,504.46
20,114.69
10,046.43
6,826.46
18,293.75
55,281.33
6,056.95
1,189.58
7,542.02
4,434.58
19,223.13
30.11
11.84
110.48
24.24
34.77
APPLICATION OF FUNDS :
Fixed Assets
Gross Block
Less : Accumulated Depreciation
Net Block
Investments
Deferred Tax Assets
Current Assets, Loans and Advances:
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets

31. Page 31 of 93
Less : Current Liabilities and
Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
35,138.71
31,510.20
66,648.91
7,855.55
864.08
31,722.51
26,540.97
58,263.48
(2,982.15)
1,395.27
3,416.20
4,969.23
8,385.43
10,837.70
(531.19)
10.77
18.72
14.39
(363.42)
(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.

32. Page 32 of 93
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.

33. Page 33 of 93
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
8628.84
8000
6000
4000
2000
(in lacs)
0
5733.03
8640.23
8650.76

34. Page 34 of 93
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)

35. Page 35 of 93
70000
65168.91
60000
50000
40000
44192.11
39053.84
31690.08
30000
20000
10000
0
The increase in reserves and surplus in 2010 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.

36. Page 36 of 93
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.

37. Page 37 of 93
Analysis of Profit and Loss Account
Horizontal Profit & Loss Account (Comparison 2009 and 2010)
Increase/Decrease over
2009
2010
2009
(Rs. In lakhs)
2,751.50
239,616.39
4,306.04
243,922.43
(Rs. In lakhs)
3,439.26
208,339.60
2,790.86
211,130.46
(Rs. In lakhs)
(687.76)
31,276.79
1,515.18
32,791.97
%age
(20.00)
15.01
54.29
15.53
122,243.11
7,076.13
102,833.54
6,985.57
19,409.57
90.56
18.87
1.30
16,732.46
14,969.23
1,763.23
11.78
50,901.37
1,333.55
45,827.98
854.50
5,073.39
479.05
11.07
56.06
394.18
2,742.04
201,422.84
566.79
2,575.26
174,612.87
(172.61)
166.78
26,809.97
(30.45)
6.48
15.35
42,499.59
4,748.45
(255.09)
36,517.59
4,057.25
75.32
5,982.00
691.20
(330.41)
16.38
17.04
(438.67)
650.97
707.81
(56.84)
(8.03)
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
Balance Brought Forward
37,355.26
32,322.99
31,695.79
22,915.65
5,659.47
9,407.34
17.86
41.05
0.11
68.55
(68.44)
(99.84)
71.68
154.19
(82.51)
(53.51)
Less Excise Duty
Net Sales
Other Income
Total Income
EXPENDITURE :
Cost of Materials
Manufacturing Expenses
Payments to and Provisions for
Employees
Selling and Administrative
Expenses
Financial Expenses
Miscellaneous Expenditure Written
Off
Depreciation
Total Expenditure
Balance being Operating Net
Profit
before Taxation
Provision for Taxation : Current
Deferred
Fringe
Benefit
Net Profit after Taxation and
before
Extraordinary Items
Provision for Taxation of earlier
years written back
Provision for Taxation for earlier
year

38. Page 38 of 93
69,606.68
54,525.80
15,080.88
27.66
6,488.07
8,650.76
1,102.65
6,480.05
6,480.17
1,101.28
8.02
2,170.59
1.37
0.12
33.50
0.12
1,470.20
0.95
9,000.00
1,101.31
40.00
7,000.00
368.89
(39.05)
2,000.00
33.50
(97.63)
28.57
42,894.05
69,606.68
32,322.99
54,525.80
10,571.06
15,080.88
32.70
27.66
4.32
4.31
3.66
3.64
0.66
0.67
18.03
18.41
864,907,642.00
869,156,259.00
863,826,759.00
868,807,461.00
1,080,883.00
348,798.00
0.13
0.04
Appropriations
Interim Dividend
Proposed Final Dividend
Corporate Tax on Interim Dividend
Corporate Tax on Proposed
Dividend
Transferred to Capital Reserve
Transferred to General Reserve
Balance carried over to Balance
Sheet
Earning per share (in Rs.) (Face
Value Re 1/- each)
Basic
Diluted
No of Shares
Basic
Diluted
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.

39. Page 39 of 93
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

40. Page 40 of 93
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.

41. Page 41 of 93
FINANCIAL ANALYSIS II: ANALYSIS OF PROFITABLITY
MultiStep Profit Margin to Sales Ratios of Dabur India Ltd(common sized)
MULTISTEP PROFIT MARGIN TO SALES RATIOS OF DABUR INDIA LTD
Particulars
Year ended
March 31, 2010
Indian Rupees
in lacs
Domestic Sales Less Returns
Exports
Gross Sales Less Returns
Ratio
Year ended
March 31,
2009
Indian
Rupees in
lacs
Ratio
Year ended
March 31,
2007
Indian
Rupees in
lacs
Ratio
Year ended
March 31,
2006
Indian
Rupees in
lacs
Ratio
230,162.64
96.05
201,293.09
96.62
196,537.05
89.47
171,140.50
91.72
12,205.25
5.09
10,485.77
5.03
26,834.73
12.22
18,816.50
10.08
242,367.89
101.15
211,778.86
101.65
223,371.78
101.69
189,957.00
101.81
2,751.50
1.15
3,439.26
1.65
3,711.03
1.69
3,372.14
1.81
Net Sales
239,616.39
100.00
208,339.60
100.00
219,660.75
100.00
186,584.86
100.00
Cost of Materials
122,243.11
51.02
101,391.54
48.67
97,108.28
44.21
80,772.30
43.29
7,076.13
2.95
6,985.57
100.00
7,425.54
3.38
5,711.24
3.06
Cost of Goods Sold(COGS)
129,319.24
53.97
108,377.11
52.02
104,533.82
47.59
86,483.54
46.35
Gross Profit
Payments to and Provisions
for Employees
Selling and Administrative
Expenses
Miscellaneous Expenditure
Written Off
110,297.15
46.03
99,962.49
47.98
115,126.93
52.41
100,101.32
53.65
16,732.46
6.98
14,969.23
7.19
16,666.83
7.59
14,495.75
7.77
50,901.37
21.24
47,269.98
22.69
63,486.20
28.90
56,522.85
30.29
394.18
0.16
566.79
0.27
649.36
0.30
426.24
0.23
4,306.04
1.80
2,790.86
1.34
2,591.23
1.18
1,336.68
0.72
46,575.18
19.44
39,947.35
19.17
36,915.77
16.81
29,993.16
16.07
2,742.04
1.14
2,575.26
1.24
3,429.05
1.56
2,692.46
1.44
43,833.14
18.29
37,372.09
17.94
33,486.72
15.24
27,300.70
14.63
1,333.55
0.56
854.50
0.41
1,537.50
0.70
1,638.73
0.88
42,499.59
17.74
36,517.59
17.53
31,949.22
14.54
25,661.97
13.75
Less: Excise Duty
Manufacturing Expenses
Other Income
Profit before Depreciation,
interest and tax- PBDIT
Depreciation
Operating Profit -OP/PBIT
Financial Expenses
Profit before tax and
extraordinary items –
PBTEOT
Extraordinary Expenses :
Credit Balance Transferred
from Merged Entity
Extraordinary Item
(Profit/(Loss) on Long Term
Trades Investments
Profit before Tax for the
year
0.00
0.00
0.00
0.00
0.00
0.00
18.58
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-1,274.05
-0.68
42,499.59
17.74
36,499.01
17.52
31,949.22
14.54
26,936.02
14.44

42. Page 42 of 93
Provision for Taxation :
Current
4,748.45
Total tax
1.95
3,494.04
1.59
2,185.80
1.17
-0.11
75.32
0.04
-136.86
-0.06
353.04
0.19
650.97
0.27
707.81
0.34
374.68
0.17
463.31
0.25
0.11
0.00
68.55
0.03
22.82
0.01
148.53
0.08
71.68
0.03
154.19
0.07
-155.37
-0.07
-51.83
-0.03
5,216.12
Fringe Benefit
Provision for Taxation of
earlier years written back
Provision for Taxation for
earlier year
4,057.25
-255.09
Deferred
1.98
2.18
5,063.12
2.43
3,599.31
1.64
3,098.85
1.66
Common-Sized Statement Showing Ratio of Expenses to Net Sales
COMMON SIZED STATEMENT SHOWING RATIO OF EXPENSES TO NET SALES
Particulars
2009
Figures(Rs lacs)
Net Sales
2007
%
239616.39
Figures(Rs lacs)
100
208339.60
%
100
Materials Cost
Raw Materials Consumed :
i)Opening Stock
5,749.47
2.40
4,692.06
2.25
ii) Add : Purchases
58,172.12
24.28
46,372.97
22.26
Total
63,921.59
26.68
51,065.03
24.51
7,126.96
2.97
5,749.47
2.76
56,794.63
23.70
45,315.56
21.75
3,120.33
1.30
3,074.17
1.48
ii) Add : Purchases
33,199.91
13.86
28,450.87
13.66
Total
36,320.24
15.16
31,525.04
15.13
3,901.49
1.63
3,120.33
1.50
Total packaging material Consumed
32,418.75
13.53
28,404.71
13.63
Purchase of Finished Products
36,918.57
15.41
29,417.23
14.12
Stock in Process
3,350.14
1.40
3,173.25
1.52
Finished Products
7,891.94
3.29
7,764.87
3.73
11,242.08
4.69
10,938.12
5.25
iii) Less : Closing Stock
Total Raw material Consumed
Packing Materials Consumed
i)Opening Stock
iii) Less : Closing Stock
Adjustment of Stocks in process and Finished Goods
Opening Stock :
Total
Closing Stock :

43. Page 43 of 93
Stock-in-process
5,311.26
2.22
3,350.14
1.61
Finished Products
9,819.66
4.10
7,891.94
3.79
Total
Increase(-)/Decrease in Stock in Process and
Finished Goods
15,130.92
6.31
11,242.08
5.40
-3,888.84
-1.62
-303.96
-0.15
Total Material Cost
122243.11
51.02
102833.54
49.36
Power and Fuel
3,662.56
1.53
3,842.27
1.84
Stores & Spares Consumed
1,041.82
0.43
1,002.37
0.48
— Building
223.94
0.09
219.90
0.11
— Plant & Machinery
373.81
0.16
387.51
0.19
— Others
388.76
0.16
361.65
0.17
Processing Charges
1,385.24
0.58
1,171.87
0.56
Total Manufacturing and Operating Expenses
7,076.13
2.95
6,985.57
3.35
13,253.51
5.53
12,071.12
5.79
1,690.69
0.71
1,262.36
0.61
Manufacturing and Other Expenses
Manufacturing and Operating Expenses
Repairs & Maintenance
Payments to and Provisions for Employees
Salaries, Wages and Bonus
Contribution to Provident and other Funds
Workmen and Staff Welfare
Directors’ remuneration (including perquisites Rs.
287.12, Previous year Rs. 297.31 under ESOP)
525.85
0.22
482.63
0.23
1,262.41
0.53
1,153.12
0.55
Total Payments to and Provisions for Employees
16,732.46
6.98
14,969.23
7.19
1,409.78
0.59
1,067.30
0.51
Rates and Taxes
266.72
0.11
184.93
0.09
Insurance
228.08
0.10
272.74
0.13
Sales Tax
101.01
0.04
135.79
0.07
Freight and Forwarding Charges
5,007.01
2.09
5,241.76
2.52
Commission, Discount and Rebate
2,274.61
0.95
2,139.73
1.03
28,492.76
11.89
24,809.68
11.91
2,082.48
0.87
1,919.92
0.92
Legal & Professional
977.88
0.41
1,429.18
0.69
Telephone, Fax Expenses
291.93
0.12
307.28
0.15
Security Expenses
299.53
0.13
268.01
0.13
Selling and Adminstrative Expenses
Rent
Advertising and Publicity
Travel & Conveyance

44. Page 44 of 93
General Expenses
7,853.37
3.28
6,896.20
3.31
10.20
0.00
11.13
0.01
21.51
0.01
18.53
0.01
0.00
0.00
0.00
0.00
- Reimbursement of Expenses
13.45
0.01
13.41
0.01
- Provident Fund and Certificates
19.09
0.01
19.14
0.01
Total Audit Fee
54.05
0.02
51.08
0.02
Donation
363.01
0.15
458.29
0.22
Contribution for Scientific Research Expenses
165.98
0.07
75.00
0.04
39.30
0.02
Directors’ Fees
Auditors’ Remuneration:
- Audit Fee
- Branch Auditors’ Fee
Bad Debts Written Off
Provision for Doubtful Debts
(Net of Excess Provision written Back Rs 19.63,
Previous year Nil)
-
737.82
0.31
257.71
0.12
Loss on Sale of Fixed Assets
13.67
0.01
165.77
0.08
Provision for Contingent Liability
13.22
0.01
73.38
0.04
258.26
0.11
23.80
0.01
50,901.37
21.24
45,827.98
22.00
Interest paid on :
666.58
0.28
336.74
0.16
Fixed Period Loan
318.15
0.13
211.61
0.10
Others
(Net of Int. received Rs. 112.97 TDS thereon Rs.
7.74 Previous year Rs. 237.94 TDS thereon Rs
12.90)
984.73
0.41
548.35
0.26
Bank Charges
348.82
0.15
306.15
0.15
1,333.55
0.56
854.50
0.41
76,043.51
31.74
68,637.28
32.94
Fixed Assets Written Down
Total Selling and Adminstrative Expenses
Financial Expenses
Total Financial Expenses
Total Manufacturing and other expense
Volume-Value-Price Analysis of Consumption of Raw Materials

45. Page 45 of 93
Raw materials
Volume(MT) & %age to Grand Total
Average Purchase Price(Rs. In thou
Value(Rs. In lacs) & %age to Grand Total
2007
2009
Volume
2007
2009
%age
Volume
%age
Value
%age
Value
2009
%age
Sugar and Molases
17,641.22
18.94
16,940.81
17.65
3,109.80
5.48
2,388.09
5.27
176.28
Vegetables Oils
Herbs, Jari Booti & Raw
Madhu
Chemicals & Perfumery
Compounds
18,783.28
20.17
16,050.10
16.72
12,251.85
21.57
9,595.28
21.17
652.27
34,330.61
36.86
31,487.93
32.81
14,016.73
24.68
11,111.98
24.52
408.29
22,379.55
24.03
31,491.87
32.81
16,419.63
28.91
14,955.62
33.00
733.69
10,996.62
19.36
7,264.59
16.03
56,794.63
100.00
45,315.56
100.00
Others Raw Materials
Total raw materials
93,134.66
100.00
95,970.71
100.00
609.81
-

46. Volume-Value-Price Analysis of Finished Goods Sold
Av
Class of Goods
Volume(MT) & %age to Grand Total
2007
2009
Volume
Value(Rs. In lacs) & %age to Grand Total
%age
Volume
2007
2008
%age
Value
%age
Value
%age
22805.2
25.39
20050.58
25.34
50483.72
25.10
37569.58
21.52
13741.49
15.30
14048.56
17.75
19430.03
9.66
17947.27
10.28
5392.81
6.00
5309.69
6.71
11688.11
5.81
10661.54
6.11
20696.63
23.04
18033.69
22.79
32970.01
16.39
30073.05
17.23
Hajmola
4339.95
4.83
4856.23
6.14
9050.61
4.50
7148.57
4.09
Asava – Arishta
Fruits,Nector &
Drinks
6954.02
7.74
6296.02
7.96
5639.95
2.80
4896.81
2.80
15172.51
16.89
9912.79
12.53
7613.04
3.79
6634.15
3.80
710.76
0.79
626.79
0.79
600.56
0.30
515.06
0.30
63659.74
31.65
59138.42
33.87
201135.8
100.00
174584.5
100.00
Hair Oils
Chyawanprash
Honey
Tooth Powder & Paste
Vegetable Pastes
Others
Total
89813.37
100.00
79134.35
100.00
Comparative Analysis of Profitability
Growth in sales value :
 Domestic Sales : 14.34 %
 Export Sales : 16.39 %
 Total Sales : 14,44 %
 Net Sales : 15.01%
Volume of all the products groups except chyawanprash and Hajmola has increased in
absolute terms.

47. Total value growth is 15.21 whereas total volume growth is 13.49 only . This shows an
overall higher selling price realization. Tooth powder & paste and Fruits, Nectar &
Drinks registered a negative volume-value growth.
A particularly sharp decline of
25.03% in the price realization of Fruits, Nectar & Drinks is accounted for 3.79% of sales
value in 2009.
Average selling price of all the products put together is up by 1.51% which basically
comes due to the rise in selling price of Hajmola , which in turn compensate the loss in
average selling price of Fruits, Nectar & Drinks
Materials Cost and Manufacturing and Other Expenses
Manufacturing and Other Expenses have decreased from 32.94% to 31.74 % of net sales,
i.e an increase in growth rate of 10.79%.
Within the material cost, packing materials consumed has come down from 13.63 % to
13.53% , whereas cost of raw materials consumed has increased from21.75% to 23.70%
.
Cost of raw materials has increased In all types of raw materials.
Within the various raw materials Herbs, Jari Booti & Raw Madhu and Chemicals &
Perfumery Compounds together account for maximum share both in quantity as well as
value. And it is here major cost efficiencies have been achieved.
PBITD
PBITD thus registered a decline of 27 basis points having increased from 19.17% of net sales in
2009-10 to 19.44% in 2010-11.
47

48. PBIT
PBIT or operating profit has registered a growth of 35 basis points from 17.94 % of net sales in
2009-10 to 18.29% in 2010-11.
Interest
Interest cost increases signifying that debt has increased this year.
Other Income
In comparison to net sales being just 1.80 % and 1.34% for 2010-11 and 2009-10 respectively.
As a percentage of PBT also, it is less signifying that most of the income of Dabur is from main
recurring and productive operations.
PBT
There is an overall improvement of basis points in PBT during 2010-11. It has risen from 17.52
% of net sales to 17.54 %.
PAT
Ultimately PAT improved from 15.09 % of net sales against 15.56% in 2009-10, registering a
growth of 47 basis points. In absolute terms PAT has risen by 18.6 %.
48

49. FINANCIAL ANALYSIS III: 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
49

50. 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
2007-08
2008-09
2009-10
2010-11
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.
50

51. 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
2007-08
2008-09
2009-10
2010-11
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.
51

52. 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
2007-08
2008-09
2009-10
2010-11
Total Long term Loans
764.22
433.9
611.29
288.94
Net Worth
96386.87
40318.92
Long-Term Debt-Equity Ratio
0.007928673
0.010762
52832.34
0.01157
73819.67
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.
52

53. Interest Coverage Ratio
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
Interest Coverage Ratio
Year
2007-08
2008-09
2009-10
2010-11
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.
53

54. Overall Analysis of Solvency Ratios
Over-all Analysis (Solvency Ratios)
Year
2007-08
2008-09
2009-10
2010-11
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
54

55. 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
2010-11
2009-10
2008-09
2007-08
74,504.46
55,281.33
39,641.22
28,436.22
Provisions
66,648.91
58,263.48
35,608.47
30,731.00
Current Ratio
1.12
0.95
1.11
0.93
Current Assets, loans and
advances
Current Liabilities and
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
55

56. 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
2010
2009
2007
2006
Liquid Assets
25,604.49
16,872.89
11,122.62
6,498.66
Current Liabilities and Provisions
66,648.91
58,263.48
35,608.47
30,731.00
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.
56

57. Net Working Capital
Formula for calculation of net working capital is given by:
Net Working Capital = Current Assets – Current Liabilities
Net Working Capital
Year
2010
2008
2007
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
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
-2,000.00
2006
2007
2008
-4,000.00
57
2009

58. 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
2010
2009
2007
2006
Cash Flow to Operations
32,357.31
31,329.01
23,442.75
19,434.49
Current Liabilities and Provisions
66,648.91
58,263.48
35,608.47
30,731.00
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
58

59. Overall Analysis of Liquidity Ratios
Over-all Analysis (Liquidity Ratios)
Year
2010
2009
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
Current Ratio
0.80
0.60
Liquid Ratio
0.40
Operating Cash Flow
Ratio
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.
59

60. 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
7
6
5
4
Fixed Asset Turnover
Ratio
3
Net Worth Turnover Ratio
2
1
0
2006
2007
2008
2009
60

61. Fixed Asset Turnover Ratio
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
Fixed Asset Turnover Ratio
Year
Net Sales
2010-11
2009-10
2008-09
2007-08
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.
61

62. Net Worth Turnover Ratio
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
Net Worth Turnover Ratio
Year
Net Sales
2010-11
2009-10
2008-09
2007-08
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
Net Worth Turnover Ratio
3.28
51,437.07
4.05
38,337
41,499.39
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.
62

63. Inventory Turnover Ratio
Formula for calculation of fixed asset turnover ratio is given by:
Inventory Holding Period
76
74
72
70
68
Inventory Holding Period
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.
Inventory Holding Period
Year
2010
2009
Inventory
26,171.64
20,114.69
Cost of goods sold
Inventory Holding Period
2008
2007
15,736.94 11,560.90
1,29,319.24 1,09,819.11 82,192.38 61,256.77
73.86
63
66.85
69.88
68.88

64. 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
64

65. 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:
Collection Period
Year
2010-11
2009-10
2008-09
2007-08
Recievables
11,236.01
10,046.43
6,097.87
2,694.25
Total Sales
2,42,367.89 2,11,778.86 1,63,736.12 1,36,968.29
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.
65

66. Creditors Turnover Ratio
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:
Creditors Turnover Ratio
Year
2010
2009
2008
2007
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 longrun.
66

67. Du Pont Analysis
With Reference To Return on Net Worth
Du Pont Analysis with Reference to RONW
Year
2009-10
Net Profit Margin
15.20%
2010-11
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
2009-10
Net Profit Margin
15.20%
2010-11
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
67

68. 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 IV: Analysis of Crucial Notes to Accounts
Note 16 regarding Earnings Per Share under Accounting Standard 20
Earnings per Share has been computed as
under
Profit after Tax
Weighted average number of shares outstanding
Basic
Diluted
Earning per Share (face value Re. 1 per share)
Basic
Diluted
2010-11
37355.27
2009-10
31677.21
864907642
869156259
863635509
869063210
4.32
4.3
3.66
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.
68

69. 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:
Salary
Commission (as computed below)
Contribution to Provident Fund
Residential Accommodation
Medical & Leave Travel Benefit
Contribution to Superannuation Fund
Others (Including Rs. 287.12 Previous year Rs. 297.31 under
stock option Scheme)
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
Add: Managerial remuneration
Directors fees
Provision for doubt full debts
Less: Capital Profit
Adjusted net profit
Maximum permissible remuneration
Maximum commission payable:
Actual commission (To one non whole-time Director)
69
31.03.2010
31.03.2009
219.2
232.9
27.79
0
29.66
27.95
131.55
139.74
4.19
3.47
43.41
34.95
780.14
1219.15
683.07
1138.87
42499.59
1219.15
10.2
737.82
0.95
44465.81
4891.23
444.65
NIL
36517.59
1138.87
11.12
257.71
40
37885.29
4167.38
378.85
27.79

70. 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.
70

71. 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 2009. 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.
71

72. Segment Analysis for the year ended 31-03-09
Segments
Capital Employed
Rs. in lacs
1 Consumer Care Business
2 Consumer Health
Business
3 Food
4 Others
5 Unallocated
Company as a whole
PAT
% of Total
Rs. in lacs
% of Total
33,451.00
6,295.00
45.85
8.63
52,099.00
5,593.00
139.47
14.97
8,840.00
3,298.00
12.12
4.52
28.88
100.00
5,326.00
131.00
-25,793.00
37,356.00
14.26
0.35
-69.05
100.00
21,071.00
72,955.00
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.
72

73. FINANCIAL ANALYSIS V: 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.
73

74. 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.
74

75. 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.
75

76. FINANCIAL ANALYSIS VI: ANALYSIS OF DIVIDENT 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 2010, the company paid an interim
dividend of 75% (Re. 0.75 per share) on February 10, 2010 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%).
6
5
4
EPS
3
Dividend Index
2
1
0
76

77. FINANCIAL ANALYSIS VII: 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.
77

78. 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 2010 have been contributed by
operating activities indicating a strong cash position.
78

79. 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.
79

80. 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.
80

81. FINANCIAL ANALYSIS VIII: 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)
Earnings per Share of
Dabur
5
4
3
2
1
0
4.32
EPS of peers in 2009
25
21.34
20
3.67
2.92
3.3
15
11.47
10
5
6.29
4.32
0
2005-06
2006-07
2007-08
2008-09
Dabur
Hul
Colgate
Godrej
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
81

82. 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 2010 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
35
30
37.32
34.6
34.6
29.16
24.44
23.48
25
20
Series1
15
10
5
0
Dabur
HUL
Godrej
P&G
Marico Ltd Colgate
PE ratio of these companies is dated 25th 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.
82

83. 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
83

84. 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
2010-11
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.
84

85. 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.
85

86. 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 2010 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.
86

87. 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
87

88. 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
88

89. CONCLUSION
After analyzing the financial statements of the Dabur by the help of various ratios, I
observed that the trend of growth is positive.
Dabur has strong performance with robust top line growth and high quality earnings in
all business segments. The performance is more satisfying when viewed in the light of
the challenging business environment of the Ayurvedic industry, Pharma, FMCG, Food
in the export and domestic markets.
Current ratio has continuously increased but the company needs to raise more of its
current assets and quick assets so that it can fulfill all its obligations and can raise the
amount of working capital for short- term investment. Earnings per share have increased
which would surely help the organization in expanding its market share.
Gross income also show the positive trend of growth, net turnover has also increased and
return on net worth has also grown. All these ratios show that the trends of profit are
growing at a rapid rate and thus it helps the company to meet the latent demands of
customer too.
Moreover, after analyzing and comparing the financial statements of Dabur w.r.t. its
competitors I observed that Dabur is itself a big player in Chyawanprash industry as most
of its ratios are far better than Zandu and Emami.
At last I can say from the above study that Emami (Himani Sona-Chandi Chyawanprash)
is also showing positive growth rate and can emerge as a great competitor for Dabur.
89

90. RECOMMENDATIONS
• The Company already had a 65.8% market share in India. It would be difficult to increase the
market share substantially. Hence the company should focus on increasing the market size.
• The company should promote Chyawanprash as an all season product and try to remove the
misconception that it is only to be consumed during the winters to strengthen the immune system
against Winter Infections and Allergies.
• It should occupy the shelf space next to the Health drinks in retail stores so that they can
remind the consumer of its claim of a comprehensive health supplement.
• Now that the company is successfully shedding its image of being associated with middle and
old age people it could also target younger generation to expand its market.
• Since Dabur Chyawanprash is perceived to be a Health supplement that aids in the
enhancement of the Immunity against winter related health problems , hence it should be
promoted strongly in areas where winters have traditionally been harsh and long.
• Chyawanprash is traditionally consumed by the middle class segment, whereas the higher
segment prefers health drinks like Bournvita & Horlicks to health supplements like Dabur
Chyawanprash.However this segment can be penetrated with a promotional focus on Ayurvedic
benefits and traditional Indian measures, which this segment values at a premium.
• The company needs to shift focus from a traditional value system that it projects and add to its
portfolio a contemporary touch that would include Children and youth in the Chyawanprash
segments also. Children are a primary next focus for the company and it needs to channelize
adequate promotion focus through such media as Cartoon Channel and other children related
programmes.
90

91. LIMITATIONS
1. The time duration was less for the project as this project includes both financial and marketing
(survey) portions.
2. Some databases were not available due to the policy of company. So some part of analysis would
have been better if this limitation was not there.
3. Some sorts of problems were involved during marketing survey.
91

92. BIBLIOGRAPHY
Annual report of DIL.
Organizations magazines
Financial Management: I.M.Pandey, M.Y.Khan &P.K.Jain
http://www.moneycontrol.com/
http://www.dabur.com/
http://www.zandu.com/
http://www.emami.com/
http://www.baidyanath.com/
http://www.equitymaster.com/detail.asp?date=5/19/2000&story=6
http://www.oppapers.com/essays/Marketing-Report-Dabur-Chyawanprash/167474
http://www.antya.com/detail/Dabur-Chyawanprash/17246
http://dabur.com/en/products/Health_Care/Health_Supplements/Chyawanprash/
http://www.business-standard.com/india/news/
http://marketingpractice.blogspot.com/2008/01/dabur-chyawanprash-zaroorat-hai.html
http://businesstoday.intoday.in/index.php?option=com_content&task=view&id=9077
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