auditor's report ON CONSOLIDATED FINANCIAL STATEMENTS
TO THE BOARD OF DIRECTORS OF DABUR INDIA LTD.
We have audited the attached consolidated balance sheet of Dabur India
Limited group, as at 31st March, 2004 and also the consolidated profit
and loss account and the consolidated cash flow statement for the year
ended on that date annexed thereto.
These financial statements are the responsibility of the Dabur India Ltd.’s
management and have been prepared by the management on the basis
of separate financial statements and other financial information
regarding components. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are prepared, in all material aspects, in accordance
with an identified financial reporting frame work and are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by the management, as well as evaluating
the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
We have relied upon recommendation of Consultants (Note No. B (2),
Schedule-P) on impairment loss/impairability of fixed assets of parent
company with the meaning of AS-28 issued by ICAI.
We did not audit the financial statements of certain subsidiaries, whose
financial statements reflect total assets of Rs.1341.70 lacs as at 31st
March, 2004, the total profit of Rs.431.96 lacs and cash flows (net)
amounting to Rs.292.49 lacs for the year ended 31st March, 2004. These
financial statements and other financial information have been audited
by other auditors whose reports have been furnished to us, and our
C1 CONSOLIDATED FINANCIALS
opinion is based solely on the report of other auditors.
We report that the consolidated financial statements have been prepared
by the Dabur India Ltd.’s management in accordance with the
requirements of AS-21 on consolidated financial statement issued by
the Institute of Chartered Accountants of India.
Based on our audit and on consideration of reports of other auditors on
separate financial statements and on the other financial information of
the components, and to the best of our information and according to
the explanations given to us, we are of the opinion that subject to
accounting policy No.A (2) (a) (on non-impairment of fixed assets of
subsidiaries unlike that of parent company) and Note No. B (3), Schedule-
P, the attached consolidated financial statements give a true and fair
view in conformity with the accounting principles generally accepted in
India.
a) In the case of the consolidated balance sheet, of the state of affairs
of Dabur India Ltd. as at 31st March, 2004.
b) In the case of the consolidated profit and loss account, of the profit
for the year ended on that date; and
c) In the case of the consolidated cash flow statement, of the cash
flows for the year ended on that date.
For G. Basu & Co.
Chartered Accountants
S. Lahiri
Partner
Membership No. 51717
New Delhi
5th May, 2004
 for the year ended

balance sheet AS AT MARCH 31, 2004

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

Schedule as at 31st March, 2004 as at 31st March,2003

SOURCES OF FUNDS :
Shareholders’ Funds:
A) Share Capital A 2,862.49 2,857.50
B) Reserves and Surplus B 25,746.45 38,802.10
Minority interest B2 1,435.79 903.82
Loan Funds:
A) Secured Loans C 8,370.69 8,300.90
B) Unsecured Loans D 4,080.75 13,125.20
Deferred Tax Liability EB 796.95 390.41
Total 43,293.12 64379.93

APPLICATION OF FUNDS :
Fixed Assets :
(A) Gross Block F 41212.67 40,549.66
(B) Less : Depreciation 16206.32 18,846.85
(C) Net Block 25006.35 25,702,81
Investments G 12,975.24 10,176.02
Deferred Tax Assets EB 57.01 34.13
Current Assets, Loans and Advances: H
(A) Inventories 15,482.30 22,219.80
(B) Sundry Debtors 7,115.37 13,628.57
(C) Cash & Bank Balances 2,020.95 4,229.56
(D) Loans & Advances 9,365.51 12,125
33,984.13 52,203.30
Less: Current Liabilities and Provisions: EA
(A) Liabilities 21,367.03 18,168.37
(B) Provisions 8,022.48 5,950.28
29,389.51 24,118.65
Net Current Assets 4,594.51 28,084.65
Miscellaneous Expenditure IA 659.90 382.32
(To the extent not written off or adjusted)

Notes to Accounts P

Total 43,293.12 64,379.93

As per our report of even date attached For Dabur India Ltd.

For G. Basu & Co. V. C. Burman Chairman

Chartered Accountants
S. Lahiri P. D. Narang Director
Partner P. N. Vijay Director
A. K. Jain Addl. GM (Fin.) & Company Secretary
New Delhi
5th May, 2004

Dabur India Limited I A N N U A L R E P O R T I 2003-04 C2

75
 profit and loss account FOR THE YEAR ENDED MARCH 31, 2004

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

for the year ended for the year ended

Schedule 31st March, 2004 31st March,2003

Income : J
Sales less returns 132,956.05 137,085.75
Other Income 907.14 718.43
Total Income 133,863.19 137,804.18
Expenditure :
Cost of materials K 58,146.81 57,756.71
Excise duty 6,540.31 7,350.21
Manufacturing expenses L 3,469.81 3,778.83
Payments to and provisions for employees M 9,155.46 10,382.58
Selling and administrative expenses N 39,726.00 42,065.81
Financial expenses O 1,528.17 2,612.61
Miscellaneous expenditure written off IB 391.88 290.68
Depreciation 2,489.27 2,931.03
Total Expenditure 121,447.71 127,168.46
Balance being Net Profit 12,415.48 10,635.72
Balance brought forward 7,602.53 4,564.09
Provision for taxation of earlier years written back 19,95 5.64
Transferred from debenture redemption reserve 250.00 250.00
20,287.96 15,455.45
Provision For Taxation Current 1,135.18 1,032.91
Deferred 348.65 299.70
Provision for taxation for earlier year 31.67 38.99
Interim dividend 1,717.49 1,428.77
Interim dividend-minority 49.80 58.48
Proposed final dividend 4,007.49 2,571.75
Employees sharing of profit 0.00 2.67
Corporate tax on interim dividend 220.05 0.00
Corporate tax on proposed final dividend 513.46 327.90
Transferred to capital reserve 155.50 17.95
Transferred to general reserve 2,312.50 2,312.50
Transferred to legal reserve 3.96 1.33
Minority interest 812.80 630.64
Balance carried over to Balance Sheet 8,979.40 6,731.86
20,287.96 15,455.45
Earning per Share ( in Rs.)
Basic 3.72 3.17
Diluted 3.71 3.16
No. of Shares
Basic 285,987,220.00 285,662,514
Diluted 286,984,379.00 286,177,354
Notes to Accounts P

As per our report of even date attached For Dabur India Ltd.

For G. Basu & Co. V. C. Burman Chairman

Chartered Accountants
S. Lahiri P. D. Narang Director
Partner P. N. Vijay Director
A. K. Jain Addl. GM (Fin.) & Company Secretary
New Delhi
5th May, 2004

C3 CONSOLIDATED FINANCIALS
schedules ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

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

Schedule as at 31st March, 2004 as at 31st March,2003

SCHEDULE A - SHARE CAPITAL
Authorised :
500000000 Equity shares of Re.1 each 5,000.00 5,000.00
[previous year 500000000 equity shares of Re. 1 )
5,000.00 5,000.00
Issued and subscribed:
286249052 Equity shares of Re.1 each fully called up 2,862.49 2,857.50
(previous year- 285749934 equity shares of Re. 1)
2,862.49 2,857.50
Notes :
1. Equity shares issued & subscribed includes following issues for consideration other
than cash :-
A) 4548000 equity shares of Rs.10 each fully paid up were issued pursuant to the
scheme of amalgamation (without payment being received in cash).
B) 18202080 equity shares of Rs.10 each fully paid up were issued as bonus shares
by way of capitalisation of free reserves to shareholders in the ratio of 4 equity
shares for every share held as on 1st December, 1993.
2. Pursuant to section 94 of Companies Act 1956, equity shares of Rs. 10 were sub-divided
in equity shares of Re. 1/- each on Dec. 15, 2000 by way of issue of 10 shares against
each share formerly held by a shareholder.
3. 499118 ( previous year 156414) equity shares of Re. 1 each were issued during the year
2003-04 under "Employee Stock Option Scheme”.
4. 1320658 ( previous year 526118) equity shares of Re. 1 each are outstanding under
”Employee Stock Option Scheme” as on 31st March, 2004.

SCHEDULE B - RESERVES AND SURPLUS

Capital reserve 1794.05 1,547.15
Share premium account 5665.90 5,378.18
Employees housing reserve/fund 370.23 302.92
Capital redemption reserve 56.93 56.93
General reserve 7853.04 23,946.96
(net of debit against exchange fluctuation
Reserve Rs.19.52 previous year Rs.6.41 )
Legal reserve 33.00 20.08
Debenture redemption reserve 0.00 250.00
Investment allowance reserve 82.58 82.58
Investment deposit reserve 182.50 182.50
Profit and loss account 8979.41 6,731.89
Employee stock option scheme outstanding 728.81 302.91
25,746.45 38,802.10

SCHEDULE B2 - MINORITY INTEREST

Share capital 249.29 161.57
Share premium 75.00 75.00
Capital reserve 126.91 0.00
General reserve 82.41 36.62
Profit & loss 902.18 630.64
1,435.79 903.82

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

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

as at 31.03.2004 as at 31.03.2003

SCHEDULE C - SECURED LOANS

A. Debentures :
O- ( Previous year 500000)14.75% secured redeemable non - 0.00 500.00
convertible debentures of Rs.100 each as fully paid up and redeemed
at par during the year (previous year 1 instalments was pending)
Secured by:
A) For debentures amounting to Rs.1250 lacs (in terms of original issue)
1) By a mortgage by deposit of title deeds in respect of all company’s immovable
properties situated at 22, Site- IV, Sahibabad, Distt. Ghaziabad present and future.
2) A first charge by way of hypothecation in respect of all the company’s movable
plant & machinery, spares and stores , tools and accessories including all other
movables both present and future situated at 22, Site IV, Sahibabad , Distt.
Ghaziabad.
Subject to :
i) Prior charges created and/or to be created in favour of EXIM bank & IDBI for their
term loans , company’s bankers for co-acceptance of bills for purchase of plant &
machinery.
The mortgage and charges created as aforesaid shall rank pari passu with the
charges created /to be created in favour of Industrial Finance Corporation of India
Ltd.
B) For debentures amounting to Rs.250 lacs (in terms of original issue)
1) By a mortgage by deposit of title deeds in respect of all company’s immov-
able properties situated at plot no. SP-C-162 , MIA, Desula, Alwar, Rajasthan
and Plot no. 7, NEPZ, Noida, Ghaziabad both present and future.
2) A first charge by way of hypothecation in respect of all the company’s movable
plant & machinery, spares and stores, tools and accessories including all other
movables both present and future situated at plot no. SP-C-162, MIA, Desula,
Alwar, Rajasthan and Plot no. 7, NEPZ, Noida, Ghaziabad.
Subject to :
I) Prior charges created and/or to be created in favour of company’s bankers on the
stock of raw materials, semi finished goods, consumables stores and book debts
and moveables for securing borrowings for working capital assistence in the ordi-
nary course of business.

B. Banks and Financial Institution

I Term loans :
Housing Development Finance Corporation Limited 0.00 75.78
GE Capital Services 1200.00 0.00
Hongkong & Shanghi Bank Ltd Egypt 7.97 22.65
Deferred Payment 178.29 209.14
PICUP under trade tax loan scheme 1,339.58 1,412.29
II Short Term Loans - from Banks: 5644.85 6,081.14
(Secured bank and institutional loans are covered by first charge on fixed assets,
inventories, book debts - (present & future) and guarantee from HSBC New Delhi)
8,370.69 8,300.90
SCHEDULE D - UNSECURED LOANS
Deposits :
Directors 55.55 48.13
Public 33.00 0.00
Companies 1050.00 3,579.98
Security deposit from dealers and others 12.83 394.29
Term loan - from banks 785.65 1,212.94
Book overdraft of current account with banks 527.58 3,027.68
Commercial papers 0.00 1,000.00
External commercial borrowing - ABN Amro Bank NV 1,616.14 3,862.18
4,080.75 13,125.20

C5 CONSOLIDATED FINANCIALS
schedules ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

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

Schedule as at 31st March, 2004 as at 31st March,2003

SCHEDULE EB - DEFERRED TAX LIABILITES ( NET)

Deferred tax liability :
Depreciation 796.95 352.51
Technical knowhow fees 0.00 37.90
796.95 390.41
Less: Deferred tax assets :
VRS payment 3.20 6.57
Other disallowances under section 43B of Income Tax Act 1961 53.81 27.56
57.01 34.13
739.94 356.28

SCHEDULE EA - CURRENT LIABILITIES AND PROVISIONS

a. Current liabilities :
Acceptance 6,013.55 7,247.53
Amount due to SSI units ( goods) 754.54 867.96
Creditors for goods 3,648.72 2,895.95
Creditors for expenses and other liabilities 10,651.56 6,475.22
Advances from customers 156.07 447.53
Interest accrued but not due on loans 17.67 120.96
Deposits - others 23.81 33.60
Investor education and protection fund to be credited by :
- unpaid dividend 81.44 53.27
- unpaid matured public deposit 13.47 19.69
- interest accured on public deposit 6.20 6.66
21,367.03 18,168.37
b. Provisions :
For dividend (proposed) - final 4,007.49 2,571.75
For corporate tax on proposed dividend- final 513.46 327.90
For leave salary 295.09 217.24
For housing, bonus & gratuity & other welfares 397.78 236.60
For taxation 2,808.66 2,596.79
8,022.48 5,950.28
29,389.51 24,118.65

SCHEDULE F - FIXED ASSETS

Gross block Depreciation Net block
Name of Asset As on Additions Tfr to Dabur Adjustment As on As on For the year Tfr to Dabur Adjustment As on As on As on
31.03.03 2003-2004 Pharma Ltd 2003-2004 31.03.04 31.03.03 2003-2004 Pharma Ltd 2003-2004 31.03.04 31.03.04 31.03.03

Freehold land 1,164.20 49.31 449.64 114.60 649.27 0.00 0.00 0.00 0.00 0.00 649.27 1,164.20
Leasehold land 538.73 84.89 278.08 0.00 345.54 24.36 3.82 0.00 0.00 28.18 317.36 514.37
Building,roads & culvert 11,842.23 1,118.71 1,551.32 104.27 11,305.35 3,287.93 371.92 435.25 11.76 3,212.84 8,092.51 8,554.30
Plant & machinery 19,025.54 2,319.22 1,495.21 600.16 19,249.39 8,402.70 1,227.60 411.93 243.10 8,975.27 10,274.12 10,622.84
Vehicles 982.04 267.03 123.93 166.21 958.93 436.12 143.30 62.05 113.97 403.40 555.53 545.92
Furniture & off equipment 3,808.44 196.93 402.45 44.83 3,558.09 1,589.10 283.18 192.18 24.45 1,655.65 1,902.44 2,219.34
Computers 2,300.62 176.96 99.19 32.91 2,345.48 1,420.09 257.99 85.09 8.03 1,584.96 760.52 880.53
Patents 330.00 0.00 0.00 0.00 330.00 144.56 47.16 0.00 0.00 191.72 138.28 185.44
Live stock 0.22 0.00 0.00 0.00 0.22 0.00 0.00 0.00 0.00 0.00 0.22 0.22
Capital work in progress 2,601.47 1,177.94 2,361.68 350.08 1,067.65 0.00 0.00 0.00 0.00 0.00 1,067.65 2,601.47
Goodwill 0.00 1,402.75 0.00 0.00 1,402.75 0.00 154.30 0.00 0.00 154.30 1,248.45 0.00

Total 42,593.49 6,793.74 6,761.50 1,413.06 41,212.67 15,304.86 2,489.27 1,186.50 401.31 16,206.32 25,006.35 27,288.63

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

Dabur India Limited I A N N U A L R E P O R T I 2003-04 C6

79
 schedules ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

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

Number as at 31.03.2004 as at 31.03.2003

SCHEDULE G - INVESTMENTS
A. Quoted-other than trade
1 Alliance 95- dividend (sold during the year) (490,918.00) 0.00 200.00
2 ICICI - Prudential balance fund - dividend (1,879,699.00) 0.00 200.00
(sold during the year)
3 Birla balance - dividend (sold during the year) (1,793,722.00) 0.00 200.00
4 Unit trust of india ( unit 64 scheme) (464,286.00) 0.00 65.00
(sold during the year)
5 Grindlays Cash Fund-IP- Growth 547,994.13 63.78 30.22
(purchase during the year) units 44497182.51 (268,414.34)
(sold during the year) units 44217602.72
6 JM Floter Fund- S T P Growth 24,233,189.80 2,472.50 0.00
(purchase during the year) units 183516056.53
(sold during the year ) units 159282866.73
7 Templeton Floting Rate income fund - ST 14,147,123.18 1,589.39 0.00
(purchase during the year units 93441697.29
(sold during the year) units 79294574.11
8 DSP ML Floating rate fund - Growth 4,177,218.29 434.00 0.00
(purchase during the year) units 59560621.21
(sold during the year) units 55383402.92
9 Birla Floating rate fund - S T P Growth 1,579,389.60 163.70 0.00
(purchase during the year) units 20127854.83
(sold during the year) units 18548465.24
10 Chola liquid fund - institutional plus-growth 2,152,599.24 276.00 0.00
(purchase during the year) units 21328759.93
(sold during the year ) units 19176160.70
11 Reliance liquid fund 25,469,444.43 2,843.00 0.00
(purchase during the year) units 25469444.43
12 HDFC Frif STF - Growth 10,997,312.87 1,166.00 0.00
(purchase during the year) units 10997312.87
13 LIC mutual fund 25,000,000.00 2,500.00 0.00
(purchase during the year) units 25000000
14 Zurich mutual fund 0.00 0.00
(purchase during the year) units 5332403.86
(sold during the year) units 5332403.86
15 Kotak liquid IP Growth 0.00 0.00
(purchase during the year) units 8728014.50
(sold during the year) units 8728014.50
16 ING Vyasa liquid fund 0.00 0.00
( purchase during the year) units 6715131.73
( sold during the year) units 6715131.73
17 Principal Cash Mgmt fund 0.00 0.00
(purchase during the year) units 49217297.06
(sold during the year) units 49217297.06
18 Tata liquid fund 0.00 0.00
(purchase during the year) units 24933170.48
(sold during the year) units 24933170.48
19 HSBC Cash fund 0.00 0.00
(purchase during the year) units 22460690.68
(sold during the year) units 22460690.68
20 IL&FS Floating rate fund 0.00 0.00
(purchase during the year) units 35103530.35
(sold during the year) units 35103530.35

C7 CONSOLIDATED FINANCIALS
schedules ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

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

Number as at 31.03.2004 as at 31.03.2003

SCHEDULE - G INVESTMENTS (Contd.)

B. Unquoted
I) Unquoted - trade investments
1 Sanat Products Ltd 50,000.00 105.00 105.00
2 Dabon International Ltd 13,500,000.00 1,350.00 1,350.00
3 Dabur Pharma Ltd 499,400.00 4.99 4.99
II) Unquoted - trade investments in subsidiary companies
1 Dabur Oncology Plc. (111,400,000.00) 0.00 7,652.02
(transferred under de-merger scheme)
III) Unquoted - other than trade investments
1 Commerce Centre Cooperative
Housing Society Ltd 15.00 0.02 0.02
2 Capexil (agencies) Ltd 3.00 0.01 0.01
3 Dabur Employees Consumers Co-Op Stores Ltd 250.00 0.03 0.03
4 Dabur Employees Cooperative Credit Society Ltd 650.00 0.07 0.07
5 Co-Operative Stores Ltd, Super Bazar 500.00 0.05 0.05
6 Vertex Broadcasting Private limited (1,000.00) 0.00 0.10
(shares sold during the year)
7 Green Valley Products Pvt. Ltd 65,000.00 6.50 6.50
8 Consortium Consumer Care Pvt Ltd (11,000.00) 0.00 1.10
(sold during the year)
9 5% Special Nepal Govt. Bond 2063(sold during year) (3) 0.00 1.38
10 5% Special Nepal Govt. Bond 2064 ( sold during year) (5) 0.00 336.29
11 12.50% Maharashtra State Dev Loan 2004 (3) 0.00 3.24
12 VIII Series National Saving Certificate 0.20 0.20
13 Dabur Securities Pvt Ltd ( sold during year) (300020) 0.00 30.00
(Less :Provision for diminution ) 0.00 (10.18)
12,975.24 10,176.02

SCHEDULE H - CURRENT ASSETS, LOANS AND ADVANCES

A. Current assets :
Inventories:
- Raw materials 6,339.12 7,343.39
- Packing materials, stores and spares 2,516.26 2,783.99
- Recoverable value from impaired fixed assets 197.85 208.71
- Stock in process 1,206.75 2,880.28
- Finished goods 5,222.32 9,003.43
15,482.30 22,219.80
Sundry debtors (unsecured) :
- Debts outstanding for a period exceeding six months :
Considered good 248.14 519.56
Considered doubtful 11.98 137.97
260.12 657.53
Less : Provision for doubtful debts 11.98 137.97
248.14 519.56
- Other debts (considered good) 6,867.23 13,109.01
7,115.37 13,628.57

Dabur India Limited I A N N U A L R E P O R T I 2003-04 C8

81
 schedules ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2004

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

as at 31st March 2004 as at 31st March 2003

SCHEDULE H - CURRENT ASSETS, LOANS
AND ADVANCES (Contd.)
Cash and bank balances :
- Cash in hand 35.03 34.00
- Balance with scheduled banks
In current accounts 1,658.85 3,690.69
In fixed deposit accounts 143.44 501.05
- Balance with non scheduled banks
In current accounts 119.77 0.00
In fixed deposit accounts 37.52 0.00
- Postal savings bank accounts 0.95 0.95
(deposited with excise authority)
- Remittance-in-transit & cheques-in-hand 25.39 2.86
2,020.95 4,229.55
24,618.62 40,077.93
b. Loans and advances (unsecured, considered
good, unless stated otherwise)
Loans & advances to others 114.63 880.04
Security deposit with various authorities(including deposit 3,555.57 4,585.88
with Govt. Authorities Rs. 501.73 previous year Rs. 1107.49)
Advance payment of tax 2,626.71 2,469.90
Advances to suppliers 1,196.05 992.33
Advances to employees 411.84 732.20
Balance with excise authorities 655.40 666.83
Other advances 805.31 1,798.17
9,365.51 12,125.37
Total (a+b) 33,984.13 52,203.30

SCHEDULE IA - MISCELLANEOUS EXPENDITURE

(to the extent not written off or adjusted)
Share issue expenses 0.00 37.81
Less: Amortised during the year 0.00 37.81
0.00 0.00
Technical knowhow fees 108.11 120.92
Less: Amortised during the year 23.54 12.82
84.57 108.11
Strategic management consultancy expenses 0.00 92.86
Less: Amortised during the year 0.00 0.00 92.86 0.00
Deferred employee compensation under ESOP;
Opening balance 136.91 217.26
Addition during the year 715.00 96.60
Less: Cancelled during the year 1.40 94.63
850.51 219.23
Less: Amortised during the year 275.18 575.33 82.32 136.91
Deferred advertisement & publicity 114.66 229.31
Less: Amortised during the year 114.66 0.00 114.65 114.66
Preliminary expenses 22.64 33.01
Add: addition during year 39.41 0.00
Less: Amortised during the year 62.05 0.00 10.37 22.64
659.90 382.32

C9 CONSOLIDATED FINANCIALS
schedules ANNEXED TO AND FORMING PART OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2004

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

for the year ended for the year ended

31st March 2004 31st March 2003
SCHEDULE J - SALES AND OTHER INCOME
A. Sales :
Domestic sales less returns 119,460.50 125,439.33
Export sales 13,495.55 11,646.42
132,956.05 137,085.75
B. Other income :
Export subsidy 66.21 102.12
Rent realised 46.00 19.44
Sale of scrap 194.12 172.61
Dividend from subsidiary companies 0.00 2.75
Other dividend - (other than trade investment) 83.62 0.38
Royalty received 34.96 106.20
Miscellaneous receipts 327.22 279.88
Profit on sale of investments 50.89 (11.26)
Profit on sale of fixed assets 104.12 46.31
907.14 718.43
SCHEDULE K - COST OF MATERIALS
Raw materials consumed :
i) Opening stock 5,814.66 5,550.93
ii) Add : purchases 22,663.50 24,439.88
28,478.16 29,990.81
iii) Less : closing stock 5,912.78 7,343.39
22,565.38 22,647.42
Packing materials consumed :
i) Opening stock 2,317.64 1,473.55
ii) Add : purchases 10,960.41 10,653.96
13,278.05 12,127.51
iii) Less : closing stock 2,105.61 2,250.95
11,172.44 9,876.56
Purchase of finished products 21,327.60 24,725.65
Adjustment of stocks in process and finished goods
Opening stock :
Stock in process 1,348.79 2,406.57
Finished products 8,164.92 9,984.28
9,513.71 12,390.85
Closing stock :
Stock-in-process 1,212.78 2,880.30
Finished products 5,219.54 9,003.47
6,432.32 11,883.77
Increase(-)/decrease in stock in process and finished goods 3,081.39 507.08
58,146.81 57,756.71
Note : Opening stock of raw materials, packing materials, stock in process and finished goods
excludes Rs. 1781.39; Rs. 158.91.Rs. 1569.30 and Rs. 1152.07 respectively being share
of pharmaceutical division being demerged on 1st April 2003 under banner of a new
corporate entity namely Dabur Pharma Limited.

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

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

for the year ended for the year ended

31st March 2004 31st March 2003

SCHEDULE L - MANUFACTURING AND

OPERATING EXPENSES
Power and fuel 2,176.55 2,394.80
Stores & spares consumed 552.20 493.87
Repairs & maintenance :
— Building 180.91 142.44
— Plant & machinery 48.54 246.49
— Others 346.05 332.21
Processing charges 165.56 169.02
3,469.81 3,778.83
SCHEDULE M - PAYMENTS TO & PROVISIONS FOR EMPLOYEES
Salaries, wages and bonus 5,466.14 6,205.55
Contribution to provident and other funds 910.23 1,149.58
Workmen and staff welfare 2,189.42 2,581.40
Directors’ remuneration 589.67 446.05
9,155.46 10,382.58
SCHEDULE N - SELLING AND ADMINISTRATIVE EXPENSES
Rent 574.65 585.75
Rates and taxes 96.53 153.94
Insurance 209.51 229.40
Sales tax 9,395.82 8,597.35
Freight and forwarding charges 3,396.42 3,649.46
Commission, discount and rebate 1,880.10 2,584.28
Advertising and publicity 17,151.81 16,980.40
Travel & conveyance 1,698.16 2,676.26
Legal & professional 1,164.86 677.08
Telephone , fax expenses 406.42 448.18
Security expenses 115.27 117.29
General expenses 2,915.21 2,961.43
Directors’ fees 1.88 1.18
Auditors’ remuneration 40.88 24.90
Donation 108.43 183.07
Contribution for scientific research expenses 455.67 1,750.00
Bad debts 114.38 445.84
39,726.00 42,065.82
SCHEDULE O - FINANCIAL EXPENSES
Interest Paid on :
Fixed period loan 802.70 1,127.45
Others 283.32 976.03
Bank Charges 442.15 509.13
1,528.17 2,612.61
SCHEDULE IB - MISC. EXPENDITURE WRITTEN OFF
Share issue expenses 0.00 37.81
Technical knowhow fees paid 23.54 12.82
Strategic management consultancy expenses 0.00 92.86
Deffered employee compensation under ESOP 275.18 82.32
Less: Transferred to Directors’ remuneration 83.55 191.63 60.15 22.17
Deferred advertisement & publicity 114.66 114.65
Preliminary expenses 62.05 10.37
391.88 290.68

C11 CONSOLIDATED FINANCIALS

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

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

SCHEDULE P - ACCOUNTING POLICIES & NOTES TO ACCOUNTS

A. ACCOUNTING POLICIES
Significant accounting policies are summarized below:
1. Principles of consolidation:
The Consolidate Financial Statement relates to Dabur India Ltd. (the parent company) and Dabur Foods Ltd,( wholly owned subsidiary company
incorporated in India), Dabur Overseas Ltd., Dabur International Limited (both wholly owned subsidiary companies incorporated in British Virgin
Islands and Isle of MAN respectively), Dabur Nepal Pvt Limited ( a subsidiary body corporate incorporated in Nepal, the extent of holding of
parent company being 79.96%), Pasadensa Foods Limited (a wholly owned subsidiary company incorporated in India , 100% stake where in is
held by Dabur Foods Limited ), Dabur Egypt Ltd. (a wholly owned subsidiary body corporate incorporated in Egypt, 76% & 24% of stake wherein
are held by Dabur Overseas Ltd and Dabur International Limited), Asian Consumercare Pvt Ltd ( a subsidiary company incorporated in Bangladesh
76% stake wherein is held by Dabur International Limited ) and WeikField Interanational (UAE) (a subsidiary body corporate incorporated in
UAE, 38.41% stake where in is held by Dabur International Limited and subsidiary status thereon been achieved as discussed in note no 5 of
Schedule P)
The consolidated financial statements have been prepared on the basis of AS-21, issued by ICAI read with the following basic assumptions :
I. The financial statements of the parent company and its subsidiary companies have been combined on a line-by-line basis by adding
together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group
transactions and resulting in unrealized profits or losses.
Investments of parent company in subsidiaries are eliminated against respective proportionate stake of parent company therein on the
respective dates when such investments were made by way of crediting the difference of the two in terms of aggregate in capital reserve
except for DNPL where the same is adjusted against share premium account and for Dabur International Limited and WeikField International
(U.A.E) Ltd the same have been debited to goodwill .
In respect of foreign subsidiaries, rise in the value of stake of parent company in terms of reported currency upto the date of commercial
production (i.e. the date, their assets were due for capitalization) on account of exchange fluctuation has been credited to capital reserve.
Subsequent generation of reserve other than that of the nature of capital reserve including gain/ loss arising on account of translating the
transactions of the year, year-end assets and liabilities of the foreign subsidiaries for the purpose of consolidating with parent company’s
assets at exchange rates ruling on year-end-date has been recognized as reserve specifically earmarked for the purpose.
II The consolidated financial statements are prepared by adopting uniform accounting policies for like transactions and other events in similar
circumstances and are presented to the extent possible, in the same manner as the parent company’s separate financial statements unless
stated otherwise.
III. Minority interest, where lying, in the net income of consolidated subsidiaries have been adjusted against the income of the group so as to
arrive at net income attributable to the parent company. Minority interest consisting of equity attributable to them on the date such
investments were made by the parent company and movement in their equity since the date of parent subsidiary relationship has been
disclosed in the consolidated financial statement separately from liability and equity of shareholders of parent company.
IV Current assets/ liabilities, income and expenses of overseas subsidiaries have been translated in reporting currency in terms of exchange
rates prevailing on year-end date.
Fixed assets of the overseas subsidiaries have been accounted for in terms of the exchange rate prevailing at the point of commencement
of production of relevant subsidiaries pertaining to assets appearing since that point of time and at purchase price (including cost of
installation) for remaining fixed assets.
2. Accounting Convention:
The accounts have been prepared in accordance with the historical cost convention.
a Fixed Assets and Depreciation:

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

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

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

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

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

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

b Investments:
Investments, being long term in nature are held at cost. Provision will be made as and when deemed necessary under AS-13 issued by ICAI.
c. Inventories:
Stocks are valued at lower of cost or net realizable value. Basis of determination of cost remain as follows:

Raw materials, Packing materials, Stores & Spares On FIFO Basis

Work-in-process At cost of input plus overhead upto the stage of completion.

Finished goods At cost of input plus appropriate Overhead
d. Research and Development Expenses:
Contributions towards scientific research expenses are charged to the Profit & Loss Account in the year in which the contribution is made.
e. Retirement Benefits:
Liabilities in respect of retirement benefits to employees are provided for as follows:

leave salary of employees of the company on the basis of actuarial valuation.

Gratuity liability on the basis of payment advice from Life Insurance Corporation of India from whom the gratuity trusts have taken the
Group Gratuity Insurance Policy or actuarial valuation/management estimate.
Liability for superannuation fund on the basis of the premium paid to Life Insurance Corporation of India in respect of employees covered

under the Superannuation Fund Policy.

f. Recognition of Income and Expenses:

Sales and purchases are accounted for on the basis of passing of title to the goods.

Sales comprise of sale price of goods including excise duty and sales tax but exclude discount.

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

All items of incomes and expenses have been accounted for on accrual basis.
g. Deferred Taxation:
The liability of company is estimated considering the provision of the Income Tax, 1961. Deferred tax is recognized subject to the consideration
of prudence, on time differences being the difference between taxable income and accounting income that originate in one period and capable
of reversal in one or more subsequent periods has been considered for Dabur India Limited. For Dabur Egypt Limited,Dabur International Ltd
(Erstwhile Redrock Limited),Dabur Nepal Pvt Ltd., Dabur Overseas Limited, WeikField Limited and Asian Consumercare Pvt Ltd. the same is not
mandatorily applicable. In case of Dabur Foods Limited and Pasadensa Foods Limited ,considering carry forward loss in the books of both
companies, no deferred tax has been recognized on the asset balances thereof due to restriction to the effect imposed under para 17, AS-22
issued by ICAI
h. Contingent Liabilities:
Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales Tax, Income Tax, Excise etc.), pending in
appeal, are treated among contingent liabilities and are not provided for in the accounts but are disclosed by way of note in Notes to Accounts.
i. Foreign Currency Translation:
In respect of foreign branches/offices, revenue items have been converted at average of month end exchange rates during the year. Fixed assets
have been converted at the rates prevailing on dates of purchase. Assets & Liabilities other than fixed assets are converted at the year-end
exchange rate. Exchange gain or loss arising out of above is charged to Profit & Loss Account.
Receivables/payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end date and the
resultant gain or loss, is charged to the Profit & Loss Account. As regards payables in respect of fixed assets, refer to item (b) above.
Exchange Loss / Gain arising out of transactions of revenue nature are separately disclosed in notes to accounts
Capital as well as revenue implication of exchange fluctuation, charged to revenue, are disclosed in notes to accounts.
j. Employee Stock Option Purchase (ESOP):
Aggregate of quantum of option granted under the scheme in monetary term has been shown as Employees Stock Option Scheme outstanding
in Reserve and Surplus head of the Balance Sheet by way of debiting deferred Employee Compensation under ESOP as per guideline to the effect
issued by SEBI.
k. Miscellaneous Expenditure:

Technical know-how fees paid to Technical Collaborators are being amortized over a period of six years.

Strategic Management Consultancy Expenses are being amortized over a period of five years.

Deferred Employees Compensation under ESOP are being amortized on straight line basis over vesting period.

C13 CONSOLIDATED FINANCIALS

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

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

B: NOTES TO ACCOUNTS
1. Building constructed on leasehold land included in the value of building shown in Fixed Assets Schedule :
As at 31st March 2004 As at 31st March 2003
Cost/Revalued 5375.68 7368.20
Written Down 3759.93 5786.25
2 Two firms, one being a firm of Chartered Accountants and the other a firm of Chartered Engineers entrusted for the exercise of impairment of
assets of parent company have recommended against any further impairment in due cognizance of paragraphs 5 to 13 of AS –28 issued by
ICAI.Considering the above facts and as concluded by the firms :-
a) None of the assets qualify for the impairment loss for the year (Previous year Rs.4894.69) which was adjusted against the profit & loss
account /opening reserve.
b) Impairment of assets contributed to write back of deferred tax with general reserve by Rs. Nil (Previous year Rs.1800.75) being the depreciation
component of deferred tax liability on impaired value of assets provided earlier against general reserve.
3. Investments held are both strategic and non-strategic. There is no decline in carrying cost of non-strategic investments. Remaining investments
being strategically held, no provision has been deemed necessary in this connection in view of temporary nature of decline which are poised for
recovery in near future as assessed by the management based on techno economic evaluation of the future cash flow of investee companies.
4. During the year, parent company has disposed off Dabur Finance Limited (an erstwhile Wholly owned Subsidiary Company ) and the loss of
Rs.84.51 sustained thereof has been charged to profit & loss account as per para 22 of AS-21 issued by ICAI.
5. (a) Following attainment of subsidiary status by Dabur International Limited (Erstwhile Redrock Ltd. )and Weikfield International UAE within
the meaning of Section 4 of Companies Act, 1956, their accounts from respective applicable date have been consolidated with the Parent
company’s accounts in terms of accounting policy No.1. This added /(reduced) various heads of accounts of consolidated financial statements
as follows :
Particulars Rs.

Statutory Reserve 8.96

Gross Block 2042.87

Accumulated depreciation 1068.46

Investments 414.53

Inventories 850.79

Sundry Debtors 1121.06

Cash and Bank 15.20

Loans & advances 113.93

Current Liabilities and provision 861.61

Secured Loans (taken) 1165.35
(b) Pharmaceutical Division of the parent Company has been demerged under banner of a separate Corporate entity namely Dabur Pharma Ltd
with effect from 1st April 2003 pursuant to the scheme of demerger to the effect approved by the Hon’ble High Court, Delhi on 17th Oct
2003 and filling of certified copy of the order with the Registrar.
Consequent upon demerger of the pharmaceutical division, the following assets ,liabilities (including share holder’s fund represented by
reserve) have been transferred to Dabur Pharma Ltd.
Liabilities Rs. in Lacs Assets Rs. in Lacs
Shareholder’s Fund Fixed Assets 5574
(General Reserve) 18618 Investment 7652
Secured Loans 437 Current Assets 8854
Unsecured Loans 2394 Loan & Advances 631
Current Liabilities & Provisions 1324 Deferred Tax/Misc Expenditure 62
Dabur Pharma Ltd is to issue 1431.25 Lacs number of equity share of Re. 1/- each at par among members of the parent company, pro-rata
in consideration of transfer of assets and liabilities in favour of Dabur Pharma Ltd which is still pending.
(c ) Considering what have been said in ‘a and ‘b’ above ,figures of previous year are not comparable with those of current year to this extent.

6. Contingent Liabilities:
i. Claims not acknowledged as debts:
a) In respect of civil suits filed against the company Rs. 267.05 (Previous year 168.42)
b) In respect of claims by employees Rs.0.50 (previous year 9.48)

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

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

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

ii In respect of Bank Guarantees executed Rs .1916.20 (previous year 700.73)
iii In respect of Sales Tax under appeal Rs. 399.40 (previous year 434.79)
iv In respect of excise duty disputes pending with various judicial authorities Rs.2895.83 (previous year Rs.2941.63)
v In respect of Corporate Guarantees given by the Company Rs. 13891.74 (previous year Rs.7138.88)
vi In respect of Income tax under appeal Rs.462.29 (previous year 112.68)
vii Estimated Amount of contract remaining to be executed on capital Account Rs.1660.21 net of Advance (previous year Rs.486.80)
viii In respect of Bill Discounting of Company Rs.4142.80 (Previous year Rs.179.80)
ix In respect of Dividend Tax Rs.49.16 (previous year Rs.49.16)
7. The other Notes to Accounts containing inter-alia explanatory material except for quantative particulars pertaining to foreign subsidiary ,disclosure
of which is not required under respective statute ,are disclosed with the accounts of different companies under consolidation.
8A. Related party Disclosures
Related party disclosures as required under AS 18 issued by the Institute of Chartered Accountants of India are given below:
(a) Name of related party and nature of related party relationship where control exists:- Nil
(b) Name of the related party and nature of related party relationship other than those referred to in (a) above in transaction with the
company:-
(i) Joint venture/Joint venture partners:-
Dabon International Pvt. Ltd.
Mr. Rukma Rana, Joint venture partner in Dabur Nepal Pvt. Ltd.
Green Valley Products Pvt Ltd.
(ii) Key management personnel Relatives of Key Management Personnel
(whole time directors/manager)
a) Pradip Burman R C Burman
Chetan Burman
b) Dr. Anand Burman A.C. Burman
c) Amit Burman Asha Burman
d) P. D. Narang —
e) Sunil Duggal —
f) Sanjay Sharma —
(iii) Associate Entities over which key management personnel are able to exercise significant influence
1. Malhotra Trading Co.
2. Jetways Travels Pvt. Ltd.
3. Gyan Enterprises Pvt Ltd.
4. Puran Associates Pvt Ltd
5. Acee Enterprises
6. Chowdry Associates
7. Miracle Commercial Enterprises Pvt Ltd
8. Wakarusa Laboratories Pvt Ltd
9. Dabur Research Foundation
10. Adbur Pvt. Ltd.
(iv) An enterprise owned by any directors of Dabur India Ltd., (even though he may not be director in that enterprise)
a) VIC Enterprises Pvt. Ltd
b) Ratna Commercial Enterprises Pvt. Ltd
(v) An enterprise owned by major shareholders
i) Milky Investment & Trading Co .
ii) Sanat Products Ltd
iii) Sahiwal Investment & Trading Co.
(vi) Associate Entities over which key management personnel are able to exercise significant influence

C15 CONSOLIDATED FINANCIALS

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

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

1. Dabur Ayurvedic Speciality Limited

2. Williamsons India Pvt Ltd.
8B. Transaction with related parties (Consolidated) for the period 01.4.03 to 31.03.2004
ASSOCIATES KEY MGT. RELATIVES OF KEY TOTAL OUTSTANDING
PERSONNEL MGT. PERSONNEL AS ON 31.03.2004
Purchases of Goods 1,882.15 0.00 0.00 1,882.15 54.10
(1,701.38) 0.00 0.00 (1,701.38) (42.21)
Sale of Goods 101.37 0.00 0.00 101.37 12.37
(71.48) 0.00 0.00 (71.48) (3.88)
Receiving of Services 7,475.95 0.00 0.00 7,475.95 896.89
(2,758.96) 0.00 0.00 (2,758.96) (268.19)
Repayment of Loans Recd 17,729.28 0.00 0.00 17,729.28 0.00
Loans Received 16,188.40 0.00 0.00 16,188.40 600.00
(3,779.63) 0.00 0.00 (3,779.63) (2,289.00)
Rent Paid 6.00 10.35 0.00 16.35 0.00
(22.70) 0.00 0.00 (22.70) (12.56)
Interest Recd On Loans Given 36.62 0.00 0.00 36.62 0.00
(51.04) (0.48) 0.00 (51.52) 0.00
Remuneration/Exg./Pension 0.00 517.63 127.80 645.43 0.00
0.00 (457.84) (334.88) (792.72) 0.00
Repayment of Loans Given (Instl.Recd) 185.07 0.00 0.00 185.07 113.34
(50.00) (0.66) 0.00 (50.66) (353.16)
Interest Paid On Loan Recd 258.34 0.00 0.00 258.34 0.00
(368.33) 0.00 0.00 (368.33) 0.00
Security deposit recd. (1.44) 0.00 0.00 (1.44) 0.00
Donation Given 455.67 0.00 0.00 455.67 0.00
(1750.00) 0.00 0.00 (1750.00) 0.00
Royalty Received 34.96 0.00 0.00 34.96 34.96
(106.21) 0.00 0.00 (106.21) (90.65)

9. Information pursuant to AS-17 issued by ICAI :

FMCG PHARMACEUTICALS FOODS ELIMINATIONS OTHERS Total Consolidated

Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year Year Year Year Year
Revenue
External sales 119244.0 106090.8 0.00 18379.5 8497.9 7607.3 0.00 0.00 5214.16 5008.11 132956.0 137085.7
Inter-segment sales
Total revenue 119244.0 106090.8 0.00 18379.5 8497.9 7607.3 0.00 0.00 5214.16 5008.11 132956.0 137085.7
Result
Segment result 12871.4 9798.6 0.00 2069.9 506.0 354.1 0.00 0.00 566.14 1025.74 13943.6 13248.3
Unallocated corporate expenses
Operating profit 12871.4 9798.6 0.00 2069.9 506.0 354.1 0.00 0.00 566.14 1025.74 13943.6 13248.3
Interest expense 1026.6 1531.3 0.00 515.8 375.6 313.8 0.00 0.00 125.96 251.81 1528.2 2612.6
(Net of Interest Income)
Income Tax(Current + Deferred) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1483.8 1332.6
Profit from ordinary activities 11844.8 8267.2 0.00 1554.1 130.5 40.3 0.00 0.00 440.18 773.94 10931.6 9303.0
Extraordinary loss: uninsured
earthquake damage to factory
Net profit 11844.8 8267.2 0.00 1554.1 130.5 40.3 0.00 0.00 440.18 773.94 10931.6 9303.0
Other Information
Segment assets 58816.0 51664.3 0.00 22711.9 6673.4 4634.0 (4538.33) (3457.39) 8387.91 10059.41 69339.0 85612.2
Unallocated corporate assets 2626.7 2469.9
Total assets 58816.0 51664.3 0.00 22711.9 6673.4 4634.0 (4538.33) (3457.39) 8387.91 10059.41 71965.7 88082.1
Segment liabilities 29910.7 28917.0 0.00 4120.4 6056.5 4976.9 (533.27) (433.56) 4338.28 5723.50 39772.2 43304.3
Unallocated corporate liabilities 2808.7 2596.8
Total liabilities 29910.7 28917.0 0.00 4120.4 6056.5 4976.9 (533.27) (433.56) 4338.28 5723.50 42580.8 45901.0
Capital expenditure 3812.7 3397.8 0.00 1095.2 1803.0 21.33 5615.8 4514.3
Depreciation 1891.3 2029.0 0.00 431.0 263.5 174.1 0.00 0.00 334.52 296.88 2489.3 2931.0
Non-cash expenses other than 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 659.9 382.3
depreciation
Secondary Segment
As the company also exports, the secondary segment for the company is based on the location of customers . Out of the total sales of
Rs.132956.00(137085.75) , the export sales is of Rs.13495.50 (11646.4) and domestic sale is 119460.5 (125439.3)

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 statement of cash flow PURSUANT TO AS-3 ISSUED BY ICAI

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

for the year ended for the year ended

31st March 2004 31st March 2003
A. CASH FLOW FROM OPERATING ACTIVITIES
Net profit before tax and extra ordinary items 12,415.48 10,635.72
ADD:
Depreciation 2,489.27 2,931.03
Miscellenous Exp. written off 391.88 290.68
Miscellenous exp. written of (included in director remun.) 83.55 60.15
Interest 1,528.17 4.492.87 2,612.61 5,894.48
16,908.35 16,530.19
LESS:
Dividend Received 83.62 3.13
Profit on sale of investment 50.89 (11.26)
Profit on sale of Assets 104.12 238.63 46.31 38.17
Operating profit before working capital changes 16,669.72 16492.01
Working capital changes
Increase/(decrease) in inventories (2,020.50) 1,828.53
Increase/(decrease) in Debtors (4,039.20) (364.65)
Increase/(decrease) in trade payables (4,503.66) (2,867.11)
Increase/(decrease) in working capital
Cash generated from operating activities (10,563.36) (1,403.23)
27,233.09 17,895.25
Interest paid 1,528.17 2,551.07
Tax paid 881.04 884.10
Income tax refund 0.00 (261.50)
Corporate tax on dividend 547.95 0.00
2,957.16 3,173.67
CASH USED(-)/(+)GENERATED FOR OPERATING ACTIVITIES (A) 24,275.92 14,721.57

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (6443.66) (4,514.29)
Sale of fixed assets 6547.78 7,856.79
Purchases of investments including investment in subsidiaries (80,339.17) (20,043.88)
Sale of investments 69,938.84 12,554.04
Dividend Received 83.62 3.13
CASH USED(-)/(+)GENERATED FOR INVESTING ACTIVITIES (B) (10,212.59) (4,144.20)

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from share capital & premium 4.99 1.56
Repayment (-)/proceeds (+) of long term secured liabilities 660.98 (1,020.67)
Repayment (-)/proceeds (+) of short term loans (344.19) (752.69)
Repayment (-)/proceeds (+) from deposit (2,135.03) (738.26)
Repayment (-)/proceeds (+) from other unsecured loans (4,632.15) (6,481.63)
Payment of other advances 2,285.65 568.51
Payment of dividend (4,666.94) (1,491.70)
Cash used (-)/+(Generated) in financing activities (C) (8,826.69) (9,914.89)
Net increase(+)/decrease(-) in cash & cash equivalents (A+B+C) 5,236.64 662.49
Cash and cash equivalents opening balance (1st April 2003) 2,566.30 3,567.06
Cash and cash equivalents closing balance (31st March 2004) 2,020.95 4,229.55
Note : Opening Cash & Cash Equivalenets excludes Rs. 1663.26 being share of
Pharmaceutical division being demerged on 1st April 2003 under banner
of a new corporate entity namely Dabur Pharma Ltd.

C17 CONSOLIDATED FINANCIALS