Analysis of various FMCG companies on different metric such financial ratio

1. ANALYSIS ON
FINANCIAL
STATEMENT OF FMCG
COMPANIES
JATIN JASWANI
LOKESH ARYA
ARINDAM DAS
MAYOOKH CHAUDHURI
VAIBHAV KUMAR
MAYUK CHAUDHARI
GROUP 10

2. INDIAN ECONOMY

3. After the shadows of the great recession in 2008, global economy has started expanding:
however, with two speeds. In developed world the economic growth is much slower than expected;
recovery seems to have stalled in major developed nations, amid declining business confidence
hurting global trade as well as employment.
In spite of the slow down caused by global financial crisis of 2007-09, downside risks of global events
particularly movement in the prices of commodities like crude oil, the Indian economy has emerged
with remarkable rapidity and is poised to further improve and consolidate in terms of key
macroeconomic indicators. Reflecting strong fundamentals and resilience, the Indian Economy posted
robust growth rate of 8.4 percent during 2010-11, thereby emerging as one of the fastest growing
economies among the developing countries. Strong performance of the agriculture sector, along with
continued robust growth of the industrial and services sectors have underlined the overall performance
of the Indian Economy. India is still growing at a rapid pace in comparison to other countries;
however that should not deter from the opportunity to push through further reforms, create
infrastructure and generate economic opportunities.
At constant prices, the primary sector i.e. agriculture, forestry &
fishing has shown a high growth of 7.0 per cent during 2010-11 as against 1.0 per cent during the year
2009-10. The growth of secondary sector is 7.2 per cent and that of service sector is 9.3 per cent
during 2010-11.
While the rest of the world has been grappling with
the after effects of the European debt crisis, the
Indian economy in 2011-12 has also seen
moderation in growth. Quarterly growth rates have
consistently fallen in 2011-12 and for the first time
since the global crisis of 2008, GDP growth rates in
India has declined below 7 percent to reach 6.1
percent in the third quarter of 2011-12. Earlier
expectations in the range of 8 percent to 8.5 percent
have been reduced gradually and now the Economy
is expected to grow at less than 7 percent. GDP
grew at a modest 7.3 percent during the first half of
the financial year but turbulent global conditions
coupled with a weak industrial sector has resulted
in a slowdown in GDP growth in the second half of
the year. With the exception of Services, GDP
growth and its two main components - Agriculture
and Industry have recorded lower growth in 2011-
12 as compared to the last year.
Further, unforeseen weakening of the Indian rupee
against the US dollar made imports even costlier.
The rupee depreciated by about 15 percent from the
levels of Rs. 44.7 to the levels of Rs. 51.3 against a
dollar in March'12. This has led to massive increase
in fiscal deficit of 5.9 percent of GDP as against a
target of 4.6 percent for this year and a further push to the inflationary pressures. Rising cost of living
casted a negative spell on the disposable income of households impacting the consumption story.
Despite recent tough global and domestic economic situation, outlook for the Indian economy still
looks promising in the medium to long term. Finance budget 2012-13 aims to control fiscal deficit
and bring it down to 5.1 percent of the GDP. Favourable demographic factors like a young working
GDP GROWTH

4. population and a labour force which is expected to increase by 32 percent in the next 20 years,
compared to a fall of 4 percent in industrialized countries and 5 percent in China, strongly indicate
latent growth potential of second fastest economy amongst the major economies on the globe.

5. FMCG INDUSTRY

6. With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG
market is something no one can overlook. Increased focus on farm sector will boost rural incomes,
hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will
improve their supply chain. FMCG sector is also likely to benefit from growing demand in the
market. Because of the low per capita consumption for almost all the products in the country, FMCG
companies have immense possibilities for growth. And if the companies are able to change the
mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer
new generation products, they would be able to generate higher growth in the near future. It is
expected that the rural income will rise in 2007, boosting purchasing power in the countryside.
However, the demand in urban areas would be the key growth driver over the long term. Also,
increase in the urban population, along with increase in income levels and the availability of new
categories, would help the urban areas maintain their position in terms of consumption. At present,
urban India accounts for 66% of total FMCG consumption, with rural India accounting for the
remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG
categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal
care category, including skin care, household care and feminine hygiene, will keep growing at
relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and
dairy are long-term growth categories in both rural and urban areas.
Indian FMCG industry is expected to grow at a base rate of at least 12% annually to become a Rs
4,000 billion industry in 2020, according to a new report by Booz & Company. The Report titled
“FMCG Roadmap to 2020 - The Game Changers” was released at the CII FMCG Forum 2010 in New
Delhi Thursday. The Report noted that the positive growth drivers mainly pertain to the robust GDP
growth, opening up and increased income in the rural areas of the country, increased urbanization and
evolving consumer lifestyle and buying behaviour. The report further revealed that if some of the
positive factors – driven mainly by improved and supportive government policy to remove supply
constraints – play out favourably, the industry could even see a 17% growth over the next decade,
leading to an overall industry size of Rs 6,200 Billion by 2020. The last decade has already seen the
sector grow at 12% annually as result of which the sector has tripled in size.
Releasing the report, Booz & Company Partner Abhishek Malhotra said, “While on an aggregate
basis the industry will continue to show strong growth, we will see huge variations at multiple levels –
product category (e.g. processed foods growing faster than basic staples), companies and
geographies.”
“Many Indian customer segments are reaching the tipping point at which consumption becomes broad
based and takes off following the traditional “S shaped” curve seen across many markets.” The sector
is poised for rapid growth over the next 10 years and by the year
2020, FMCG industry is expected to be larger, more responsible and more tuned to its customers,” he
further added.
The Report identifies 9 key mega trends across consumers, markets and environment that will have a
significant impact in shaping how the industry will look like in year 2020.
(a) Increasing Premiumization
Continued income growth coupled with increased willingness to spend will see consumers’ up-
trading, creating demand for higher priced and increased functionality (real or perceived) products.
The size of this segment will be large.

7. (b) Evolving Categories
Many consumers will move up the ladder and will shift from basic “need” to “want” based products.
In addition evolving behaviour and emphasis on beauty, health & wellness will see increased
requirements for customized and more relevant product offerings.
(c) Value at BoP
Significant majority of the population in the country, especially in the rural markets, will become a
consumption source by moving beyond the “survival” mode. This segment will require tailored
product at highly affordable prices which will come with the potential of very large volumes.
(d) Increasing Globalisation
While many leading MNCs have operated in the country for years given the liberal policy
environment, the next 10 years will see increased competition from Tier 2 and 3 global players. In
addition, larger Indian companies will continue to seek opportunities internationally and also have an
access to more global brands, products and operating practices.
(e) Decentralization
Despite the complexity of the Indian market (languages, cultures, distances) the market has mainly
operated in a homogenous set-up. Increased scale and spending power will result in more fragmented
and tailored business models (products, branding, operating structures).
(f) Growing Modern Trade
Modern trade share will continue to increase and is estimated to account for nearly 30% by year 2020.
This channel will complete existing traditional trade (~8 million stores which will continue to grow)
and offer both a distribution channel through its cash & carry model as well as more avenues to
interact with the consumer.
(g) Focus on Sustainability
Global climatic changes, increasing scarcity of many natural resources (e.g. water, oil) and consumer
awareness (e.g. waste) are leading to increased concerns for the environment. The pressure on
companies to be environmentally responsible is gradually increasing due to involvement of various
stakeholders – from government (through policy) to consumers (through brand choice) and NGOs
(through awareness).
(h) Technology as a Game Changer
Increased and relevant functionality coupled with lower costs will enable technology deployment to
drive significant benefits and allow companies to address the complex business environment. This
will be seen both in terms of efficiencies in the back-end processes (e.g. supply chain, sales) as well as
the front-end (e.g. consumer marketing).
(i) Favourable Government Policy

8. Many government actions – in discussions as well as planned – will help in creating a more suitable
operating environment. This will be done both on the demand side by increased income and education
as well as on the supply side by removing bottlenecks and encouraging investments in infrastructure.
The confluence of many of these change drivers – consumers, technology, government policy, and
channel partners – will have a multiplication impact and magnify both the amount as well as the pace
of change. Winning in this new world will require enhancing current capabilities and building new
ones to bridge gaps. In this new world FMCG companies will have 6 imperatives from a business
strategy perspective: disaggregating the operating model, winning the talent wars, bringing
sustainability into the strategic agenda, re-inventing marketing for ‘i-consumers’, re-engineering
supply chains, partnering with modern trade.
The report urges the need for other stakeholders – government, retailers, NGOs and investors–to play
a key role and evolve in a similar fashion to support the growth of the industry while continuing to
deliver on their core business and social mandates.
The present market scenario can be described by the following table:
Name Last Price Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
HUL 532.40 115,098.84 22,116.37 2,691.40 3,512.93
Godrej Consumer 649.10 22,090.56 2,980.08 604.39 2,761.43
Dabur India 124.75 21,742.94 3,759.33 463.24 1,576.54
Colgate 1,199.45 16,311.66 2,693.23 446.47 435.40
Marico 190.60 12,285.00 2,970.30 336.58 1,677.27
Godrej Ind 277.30 9,288.96 1,438.04 201.56 1,739.27
P and G 2,405.35 7,807.94 1,297.41 181.29 600.62
Emami 499.05 7,551.21 1,389.82 256.81 804.23
Gillette India 2,135.30 6,957.92 1,232.90 75.73 600.33
Jyothy Labs 158.30 2,552.81 662.97 83.52 1,226.42
Bajaj Corp 169.60 2,501.60 473.31 120.09 427.86
Amar Remedies 35.90 93.93 671.33 44.62 413.96
JHS Svendgaard 31.60 76.14 92.80 -3.64 123.52
GKB Ophthalmics 38.00 15.78 31.13 1.71 30.44

9. DABUR INDIA
LIMITED

11. Under one brand name Dabur it has marketed a variety of products, ranging from hair care to honey,
oil, chyawanprash, Amla, Vatika, Hajmola and Real. The company is taking care of young and old
generation demands into mid for development of products. It is having its manufacturing plants
mainly in hilly areas where it can get the raw materials of herbs for production of ayurvedic medicines
and other products. In 1936 Dr. Burman established Dabur India Limited. From its beginning it has
launched many products and these are doing successful business in Indian as well as foreign markets
on the basis of trust and loyalty. The products are consumer friendly with almost no side effects on
human body. This company has development its own research laboratory for development and testing
of the products. The future of the company is very bright at least in Indian markets.
Products of Dabur
Dabur India Limited is a leading Indian consumer goods manufacturer of Hair Care, Oral
Care, Health Care, Skin Care, Home Care and Foods. The company is committed to provide natural
solution healthy and holistic lifestyle. The products are herbal based and very friendly to the health
without any adverse effects. The company is manufacturing a variety of products and marketing with
trust and on the basis of loyalty of customers in India and abroad. Through research and development
facilities the products are developed as per the emerging demands of the customers. Dabur is
manufacturing products and medicines related to ayurvedic area. It is having a long list of its products
for customers to use. The list of the products is appended below;
• Hair care products: Dabur amla hair oil, Dabur hair oil sikakai, Dabur vatika hair oil,
Dabur amla hair oil lite, Dabur special hair oil, Dabur jasmine hair oil, Dabur jasmine hair oil,
Parachute coconut oil, Cocoraj coconut oil , Dabur anmol coconut oil
• Soaps: Dabur neem soap, Dabur sandalwood soap, Dabur sandalwood soap, Dabur aloe vera soap
• Ayurvedic medicines: Dabur hajmola tablets, Dabur shilajit health tonic, Dabur hingwastak churan,
Dabur nature care triphla. Dabur hajmola candy, Dabur herbal toothpaste, Basil, Sat isabgol, Dabur
nature care triphla, Dabur hingwastak churan, Dabur lavan bhaskar churan, Dabur honey, Dabur
sitopaladi churan, Dabur pudin hara pearls
• Dabur healthcare products: Dabur chyawanprakash - sugar free, Dabur chyawanshakti - energy food,
Dabur chyawanprash, Dabur chyawan junior, Chocolate flavoured health drink for kids.
SWOT Analysis of Dabur India
SWOT is the process and it stands for Strengths, Weaknesses, Opportunities and Threats, and is an
important tool often used to highlight where a business or organisation is, and on the basis of this the
company can take the strategic decisions for the business in the future. It looks at internal factors, the
strengths and weaknesses of a business, and external factors, the opportunities and threats facing the
business. This process highlights strength, weakness, opportunities in the markets and threats to the
business of the company. The SWOT analysis of Dabur would make the position of the company
clear and it can assess the capacity of the company and the market positions for the business. The
SWOT process for Dabur is carried out as follows:
(i) Strengths:
It highlights the plus points of the company internally. It shows the position of the company
relating to its resources, management approach etc. On the basis of this management can dare to
take further steps. The strengths of the company are:
• Support from leading businesses houses from abroad.

12. • Financial position of the company is sound.
• Research and development facilities are adequate for further development of the products.
• Market position is well maintained
• Niche marketing strategy is doing well.
(ii) Weaknesses:
• The impact of Dabur products is slow and of low quality and that is to be improved;
• Production and operating costs are higher and these reduce the profits of the company.
• Dabur India’s R&D facilities are comparatively inadequate and needs improvements.
• In experienced staff sometimes creating problems and giving weak performance.
• Old and outdated technologies not helping in production of more production of higher quality.
• Lack of innovative approach in the company exists.
(iii) Opportunities:
• Indian market is very wide and having great potential for further development.
• The knowledge of the company regarding customers and there profile is good.
• The availability of raw materials and low labour cost is another opportunity.
• Less level of competition is herbal based products
(iv)Threats:
• Export expansion chances are very less.
• Competition is slowly increasing and for further it would be threat.
• Higher inflation increasing the total costs.
FINANCIAL POSITION
STATEMENT
(Rs in Crs)
Year Mar 12 Mar 11 Mar 10 Mar 09 Mar 08
SOURCES OF FUNDS :
Share Capital 174.2
1
174.
07
86.9 86.51 86.4
TOTAL RESERVES
EXCLUDING
REVALUATION
RESERVE
1,128.
28
927.
09
662.4
8
651.6
9
441.9
2
Capital Reserves 26.92 26.78 25.44 23.37 23.37
General Reserves 109.2
3
58.54 95.58 157.86 55.75
Share Premium 22.93 10.74 0 13.92 8.67

13. Profit & Loss Account
Balance
864.1
1
714.2
2
526.9
1
428.94 323.23
Other Reserves 105.0
9
116.8
1
14.55 27.6 30.9
TOTAL REVALUATION
RESERVE
0.78 0 0 0 0
Total Shareholders
Funds (A)
1,303.
27
1,10
1.16
749.3
8
738.2 528.3
2
Secured Loans 0 3.39 24.27 10.65 16.45
Term Loans Institutions 0 0 0 0 1.1
Term Loans Banks 0 2.69 22.37 8.25 10.99
Term Loans Others 0 0 0 0 4.36
Deferred Credit / Hire
Purchase
0 0.7 1.9 2.4 0
Unsecured Loans 1.14 2.12 85.7 130.7
2
0.89
Loans from Banks 0 0 78.9 110.01 0.24
Deferred Tax 1.14 2.12 2.9 0 0
Commercial Paper 0 0 0 20 0
Security Deposits 0 0 3.9 0.71 0.65
Total Debt (B) 1.14 5.51 109.9
7
141.3
7
17.34
Other Liabilities (D) 431.7
7
360 0 0 0
Total Liabilities
(A+B+D)
1,736.
18
1,46
6.67
859.3
5
879.5
7
545.6
6
APPLICATION OF
FUNDS :
Gross Block 883.2
3
766.
88
687.2
3
518.7
7
467.9
4
Patent 12.79 11.76 11.76 11.13 11.13
Leasehold Land 9.7 9.7 9.7 9.34 9.24
Freehold Land 36.97 36.97 34.39 11.42 7.62
Buildings 323.4
5
278.2
1
252.8
7
160.6 135.6
Plant and Machinery 403.0
5
339.0
5
290.2 244.16 223.63
Furniture and Fixtures 34.46 33.14 32.03 28.7 29.64
Computers 36.09 34.83 33.23 30.37 31.77
Vehicles 13.82 13.28 13.07 13.11 10.85
Other Fixed Assets 12.9 9.94 9.98 9.94 8.46
Less : Accumulated
Depreciation
-297.9 -
269.
-
236.3
-
210.5
-
189.8

14. 32
Leasehold Land 1.05 0.95 0.85 0.74 0.65
Buildings 64.9 57.13 50.02 43.42 39.14
Plant and Machinery 157.5
4
139.4
8
121.4
7
110.41 97.43
Furniture and Fixtures 22.87 21.53 19.99 18.14 17.91
Computers 26.38 26.77 24.07 22.06 21.97
Vehicles 6.61 6.79 5.98 5.16 4.72
Other Fixed Assets 9.21 8.19 6.2 4.17 2.39
Net Block (E ) 585.3
3
497.
56
450.9
5
308.3
2
278.1
7
Capital Work in
Progress
11.58 4.37 23.31 51.71 16.26
Capital Advances 0 0 13.9 5.92 4.64
Other Capital Work in
Progress
11.58 4.37 9.41 45.79 11.62
Investments 552.7
2
519.
49
348.5
1
436.9 270.3
7
Quoted Government
Securities
84.11 0 0 0 0
Unquoted Government
Securities
0.02 0.02 0.02 0.01 0.01
Quoted Equity 0 0 0.06 0 0.01
Unquoted Equity 71.54 101.6 96.84 92.04 67.98
Quoted
Debentures/Bonds
3.81 0 0 0 0
Unquoted
Debentures/Bonds
35 10 0 21.5 0
Quoted Units 122.3 83.72 249.8
6
117.78 202.64
Joint Venture /
Partnerships
0 0.49 0.5 0 0
Application Money 0 0 1.5 1 0
Other Investments 235.9
4
323.6
6
0 204.84 0
Less : Prov.for
dimunition in value of
investment
0 0 -0.27 -0.27 -0.27
Current Assets,
Loans & Advances
Inventories 528.5
7
460.
59
298.4
4
261.7
2
201.1
5
Raw Materials 222.7
4
214.0
7
87.78 71.27 57.5
Work-in Progress 96.26 64.35 51.57 53.11 33.5

15. Finished Goods 200.5
1
178.4
5
116.1
8
98.2 78.92
Stores and Spares 0.44 0.46 0 0 0
Packing Materials 0 0 42.91 39.14 31.23
Goods-in transit 8.62 3.26 0 0 0
Sundry Debtors 224.1
7
202.
46
130.4
8
112.3
6
100.4
6
Debtors more than Six
months
15.75 13.25 18.68 12.61 8.86
Debtors Others 220.8
8
201.3
6
123.7
4
112.1 96.77
Less : Provisions for
Doubtful Debts
-12.46 -
12.15
-
11.94
-12.35 -5.17
Cash and Bank 291.2
9
192.
41
163.9
1
143.6
9
68.26
Balance with Bank 290.9
8
192.0
8
48.2 41.33 67.05
Term Deposit with
Banks
0 0 115.1
1
101.53 0.9
Cash in hand / others 0.31 0.33 0.6 0.83 0.31
Loans and Advances 193.3
5
124.
48
325.1
2
227.2
8
182.9
4
Loans to Subsidiary 0 0 3.9 0 0.04
Loans to Others 2.85 2.21 2.23 2.27 4.27
Deposits with
Government
47.99 48.64 27.17 23.27 19.27
Deposits Others 0 0 17.2 14.55 9.96
Advance Tax 9.7 0 242.5 163.73 126.21
Advances to suppliers 64.41 41.81 20.06 14.11 13.24
Advances recoverable
in cash or kind
0 0 12.06 9.35 9.95
Less : Provision for
Doubtful Advances
-1.06 -1.06 0 0 0
Interest Accrued on
Investments
13.56 5.14 0 0 0
Other Current Assets 55.9 27.74 0 0 0
Total Current Assets 1,237.
38
979.
94
917.9
5
745.0
5
552.8
1
Less : Current
Liabilities and
Provisions
Current Liabilities 916.7
9
779.
13
432.0
6
331.2
1
317.2
2
Sundry Creditors 585.1
1
494.8
6
349.0
2
281.43 259.73

16. Creditors for Goods 0 0 98.87 107.76 88.49
Creditors for Finance 0 0 250.1
5
179.37 171.24
Creditors for Others 585.1
1
494.8
6
0 -5.7 0
Acceptances 0 0 60.87 45.27 51.58
Bank Overdraft / Short
term credit
276.6
7
246.5 0 0 0
Advances from
Customers / Credit
balances
10.88 3.73 19.12 1.94 1.95
Due to Subsidiary /
Group Companies
0 0 0 0 1.65
Trade and Other
deposits
0 0 0 0 0.06
Unclaimed Dividend 4.01 3.64 3.04 2.56 2.15
Interest Accrued But
Not Due
0 0.01 0.01 0.01 0.1
Other Liabilities 40.12 30.39 0 0 0
Provisions 160.6
3
144.
71
440.1 332.8
9
265.4
1
Provision for Tax 0 0 232.8
8
158.84 122.5
Provision for Corporate
Dividend Tax
21.2 18.36 18.46 14.7 11.01
Provision for Gratuity 4.71 9.06 13.25 14.44 13.11
Provision for Dividend 130.6
6
113.1
5
108.6
2
86.51 64.8
Proposed Equity
Dividend
130.6
6
113.1
5
108.6
2
86.51 64.8
Other Provisions 4.06 4.14 66.89 58.4 53.99
Total Current
Liabilities
1,077.
42
923.
84
872.1
6
664.1 582.6
3
Net Current Assets
(E-F)
159.9
6
56.1 45.79 80.95 -
29.82
Miscellaneous
Expenses not written
off
0 0 2.74 8.64 13.95
Deferred revenue
expenses
0 0 2.74 8.64 13.86
Royalty/Liscense fees/
Technical Knowhow
0 0 0 0 0.09
Deferred Tax Assets 23.93 21.2
8
23.82 23.54 24.01
Deferred Tax Liability 51.04 38.68 35.77 30.49 27.28
Net Deferred Tax -27.11 -17.4 -
11.95
-6.95 -3.27

17. Other Assets 453.7 406.
55
0 0 0
Total Assets 1,736.
18
1,46
6.67
859.3
5
879.5
7
545.6
6
Contingent Liabilities 1,325.
07
1,01
3.30
137.9 162.4
1
109.4
6
Claims not
acknowledged as debt
8.14 8.02 7.72 6.68 2.71
Guarantees
undertaken
1,223.
03
931.7
2
59.84 84.45 61.65
Letter of Credit 3.9 1.79 0.53 0.42 4.58
Bills Discounted 0 0 34.16 45.27 10.49
Disputed Sales Tax 10.7 12.02 11.67 7.6 8.22
Disputed Income Tax 3.19 9.4 0.77 0.68 0.46
Disputed Excise Duty 76.11 50.35 23.21 17.31 21.35
Estimated Capital
Contracts Remaining
16.65 27.2
5
24.62 30.65 66.84
PERFORMANCE
STATEMENT
(Rs in Crs)
Year Mar 12(12) Mar 11(12) Mar 10(12) Mar 09(12) Mar 08(12)
INCOME :
Sales Turnover 3,781.90 3,295.97 2,879.54 2,423.68 2,117.79
Sales turnover /
Operating
Income
3,781.49 3,295.36 2,879.54 2,423.68 2,117.79
Job Work &
Service Income
0.41 0.61 0 0 0
Excise Duty -38.72 -30.99 -23.58 -27.52 -34.39
Net Sales 3,743.1
8
3,264.9
8
2,855.9
6
2,396.1
6
2,083.4
0
Other Income 69.5 41.98 41.64 44.19 30.29
Export
Incentives
7.66 4.37 5.33 6.81 4.66
Dividend
Income
0.38 0.19 0 0 0
Interest Income 45.13 14.93 7.89 1.13 2.38
Profit on sale of
Fixed Assets
0.65 1.72 2.44 0.42 0.48
Profit on sale of
investments
7.19 9.51 12.68 20.89 9.82
Rent received 0 0 1.42 0.09 0.14
Gain on Cancell.
of Forward
Contr/forex
0 0 0 7.93 0.41

18. trans
Sale of Scrap 6.54 5.75 5.22 5.03 5.58
Miscellaneous
Income
1.95 5.51 6.66 1.89 6.82
Stock
Adjustments
59.33 78.31 9.68 38.89 3.04
Closing Stock Of
WIP
96.26 64.35 51.57 53.11 33.5
Closing Stock of
Finished Goods
209.13 181.71 116.18 98.2 78.92
Opening Stock
of WIP
-64.35 -51.57 -53.11 -33.5 -31.73
Opening Stock
of Finished
Goods
-181.71 -116.18 -98.2 -78.92 -77.65
Adjustment on
amalgamation /
trial runs
0 0 -6.76 0 0
Total Income 3,872.0
1
3,385.2
7
2,907.2
8
2,479.2
4
2,116.7
3
EXPENDITURE
:
Raw Materials 2,079.4
2
1,728.9
6
992.21 937.13 747.32
Opening Stock
of Raw
Materials
214.07 87.78 71.27 57.5 46.92
Purchases of
Raw Material
1,492.37 1,400.34 609.36 581.72 463.73
Purchase of
Trading Goods
595.72 454.91 395.51 369.19 294.17
Closing Stock of
Raw Materials
-222.74 -214.07 -87.78 -71.27 -57.5
Adjustment on
amalgamation /
trial runs
0 0 3.85 -0.01 0
Power & Fuel
Cost
46.41 42.39 35.43 36.63 38.42
Other
Manufacturing
Expenses
49.72 46.52 432.15 358.33 315.49
Packing
Materials
0 0 391.4 324.19 284.05
Job Work /
Contract /
Processing
Charges
20.74 20.98 19 13.85 11.72
Stores
Consumed
13.45 11.72 10.36 10.42 10.02
Repairs - Plant
& machinery
4.48 4.23 3.74 3.74 3.88
Repairs -
Building
3.68 2.81 2.21 2.24 2.2

19. Repairs - Others 7.37 6.78 5.44 3.89 3.62
Gross Profit 1,696.4
6
1,567.4
0
1,447.4
9
1,147.1
5
1,015.5
0
Employee Cost 233.19 208.93 197.62 154.7 138.16
Salaries,Wages
& Bonus
207.08 180 170.01 132.54 120.71
Contribution to
funds
16.27 16.42 18.96 16.91 12.62
Staff Welfare
Expenses
9.83 12.5 8.65 5.25 4.83
Other Employee
Cost
0.01 0.01 0 0 0
Selling and
Administration
Expenses
606.4 581.93 566.4 429.25 390.67
Rent,Rates and
Taxes paid
0 0 20 16.77 12.52
Sales Tax 3.08 2.89 1.67 1.01 1.36
Insurance 3.61 2.86 2.68 2.28 2.73
Discount paid 25.28 18.85 0 0 0
Advertisement 397.66 390.19 390.03 284.93 248.1
Commssion
expenses on
sales
32.87 31.66 30.21 22.75 21.4
Distribution
Expenses
71.96 62.87 52.88 50.07 52.42
Legal Expenses 15.37 21.59 18.07 9.78 14.29
Communication
Expenses
3.82 3.55 3.66 2.92 3.07
Travel Expenses 33.18 30.07 27.24 20.82 19.2
Audit Expenses 0.87 0.78 0.83 0.54 0.51
Director's
Remuneration
10.3 8.48 14.86 12.72 11.64
R & D Expenses 2.8 3.68 0.5 1.66 0.75
Other
Administrative
Expenses
5.6 4.46 3.77 3 2.68
Miscellaneous
Expenses
189.86 100.38 111.04 96.32 84.83
Donations 8.3 7.15 6.13 3.63 4.58
Loss on Sale of
Assets
0.37 0.22 0.43 0.14 1.66
Bad Debts
written off
0 0 0 0 0.4
Expenses
Ammortised
0 0 5.66 3.94 5.67

20. Provision for
doubtful loan/
Deposit/
Advances
0.31 1.01 0.96 7.38 2.58
Provision for
Contingency
0 0 0 0.13 0.74
Other provisions
and write offs
46.48 0.02 0 0 0
Other
Miscellaneous
Expenses
134.4 91.98 96.27 78.52 68.96
Depreciation 65.88 67.9 31.91 27.42 25.75
Operating
Profit
601.13 608.26 540.52 439.46 376.09
Interest 14.1 12 13.49 14.47 10.92
Fixed Interest 0 0 10.13 6.67 3.37
Other Interest 12.54 9.74 0.15 4.31 4.49
Financial
Charges
1.56 2.26 3.21 3.49 3.06
Profit Before
Tax
587.03 596.26 527.03 424.99 365.17
Tax 114.45 119.4 89.66 47.48 40.57
Fringe Benefit
tax
0 0 0 6.51 7.08
Deferred Tax 9.34 5.45 4.04 -2.55 0.75
Reported Net
Profit
463.24 471.41 433.33 373.55 316.77
Extraordinary
Items
-29.52 8.71 12.08 18.8 7.66
Profit/(Loss) on
Sale of Assets
0.28 1.5 2.01 0.28 -1.18
Profit/(Loss) on
Sale of
Investment.
7.19 9.51 12.68 20.89 9.82
Miscellaneous
Income/Expense
-44.89 0 0 0 0
Less : Tax on
Extra Ordinary
Income/Expense
7.3 2.2 2.5 2.37 0.96
Less : Deferred
Tax on Extra
Ordinary
Income/Exp.
0.6 0.1 0.11 0 0.02
Adjusted Net
Profit
492.76 462.7 421.25 354.75 309.11
Adjst. below
Net Profit
0 0 -0.19 -0.71 -0.68
Short/(Excess) 0 0 -0.19 -0.71 -0.86

21. provision for tax
Other
adjustments
0 0 0 0 0.18
P & L Balance
brought forward
714.22 526.91 428.94 323.23 229.16
Appropriations 313.35 284.1 335.17 267.13 222.02
Appropriation to
General
Reserve
50 50 130 90 70
Appropriation to
Other Reserves
0.14 0.94 2.07 0.01 0.4
Prior Year
Dividend Paid
0 0.15 0 0 0
Provision for
Equity Dividend
226.47 200.19 173.6 151.39 129.6
Dividend Tax 36.74 32.82 29.5 25.73 22.02
INTERIM
DIVIDEND PAID
95.81 87.04 64.98 64.88 64.8
P & L Balance
carried down
864.11 714.22 526.91 428.94 323.23
Dividend 226.47 200.19 173.6 151.39 129.6
Equity
Dividend %
130 115 200 175 150
Earnings Per
Share-Unit Curr
2.45 2.52 4.65 4.02 3.41
Book Value-
Unit Curr
7.48 6.33 8.64 8.53 6.11
CASH FLOW
STATEMENT
(Rs in Crs)
Year Mar 12(12) Mar 11(12) Mar 10(12) Mar 09(12) Mar 08(12)
Cash and Cash
Equivalents at
Beginning of the
year (Y*)
192.
41
163.9
1
151.
84
68.2
6
54.04
Cash Flow From Operating Activities
Less: Total
Adjustments (PBT &
Extraordinary
Items) (A)
-
31.6
4
-58.25 -
25.8
4
-
29.5
6
-32.95
Depreciation 38.73 37.73 31.91 27.42 25.75
Interest (Net) -31.03 -1.00 -2.29 13.34 8.55
P/L on Sales of
Assets
-0.28 -1.50 -2.01 -0.28 -0.48
P/L on Sales of
Invest
-7.19 -9.51 -12.68 -20.88 -9.82

22. Prov. & W/O (Net) 31.17 31.81 9.47 9.96 8.95
P/L in Forex 0.89 0.72 -0.15 0.00 0.00
Others -0.65 0.00 1.59 0.00 0.00
Op. Profit before
Working Capital
Changes (B)
663.
56
654.5
1
552.
87
454.
56
398.1
3
Net Profit before
Tax & Extraordinary
Items (A+B)
631.
92
596.2
6
527.
03
425.
00
365.1
8
Total (OP before
Working Capital
Changes) (C )
-
24.2
6
-
188.3
6
45.3
6
-
58.0
6
-17.14
Trade receivables -14.55 -87.38 5.25 -11.91 -19.90
Inventories -67.99 -162.14 -26.85 -60.57 -14.05
Trade Payables 95.46 84.37 66.96 14.42 16.81
Loans & Advances -37.18 -23.21 0.00 0.00 0.00
Cash Generated
from/(used in)
Operations (B+C)
639.
30
466.1
5
598.
23
396.
50
380.9
9
Total-others (D) -
119.
18
-
114.6
1
-
98.6
4
-
72.9
3
-67.70
Interest Paid(Net) 0.00 0.00 -5.60 -13.38 -8.70
Direct Taxes Paid -119.18 -114.61 -93.04 -37.51 -47.98
Others 0.00 0.00 0.00 -22.04 -11.02
Net Cash from
Operating Activities
(C1=B+C+D)
520.
12
351.5
4
499.
59
323.
57
313.2
9
Cash Flow from Investing Activities
Investment in
Assets :
Purchased of Fixed
Assets
-142.39 -74.56 -128.36 -96.87 -47.07
Sale of Fixed Assets 2.45 3.10 17.74 4.13 2.50
Financial/Capital
Investment :
Purchase of
Investments
-
3345.0
0
-
4762.9
9
-
5328.3
7
-
4016.31
-
2975.
40
Sale of Investments 3275.6
6
4601.7
9
5171.4
5
3870.67 2840.
20
Interest Received 36.70 10.44 7.89 0.00 0.00
Invest.In
Subsidiaires
-16.00 -6.60 0.00 0.00 0.00
Net Cash Used in
Investing Activities
(C2)
-
188.
58
-
228.8
2
-
259.
65
-
238.
38
-
179.7
7
Cash Flow From Financing Activities
Proceeds:

23. Proceeds from Issue
of shares (incl share
premium)
0.07 0.14 0.25 0.10 0.11
Proceed from 0ther
Long Term
Borrowings
19.81 0.00 0.00 0.00 0.00
Proceed from Short
Tem Borrowings
9.91 154.17 5.91 129.83 0.00
Payments:
Of the Long Tem
Borrowings
-5.85 -5.10 -8.22 -3.28 -13.09
Of the short term
Borrowings
0.00 -2.76 -48.11 -4.91 -48.02
Dividend Paid -208.59 -195.22 -151.96 -129.68 -66.47
Interest Paid -14.11 -12.93 0.00 0.00 0.00
Others -33.90 -32.52 -25.74 -1.83 8.17
Net Cash Used in
Financing Activities
(C3)
-
232.
66
-94.22 -
227.
87
-9.77 -
119.3
0
Net Inc/(Dec) in
Cash and Cash
Equivalent
(Y=C1+C2+C3))
98.8
8
28.50 12.0
7
75.4
2
14.22
Cash and Cash
Equivalents at End
of the year (Y*+Y)
291.
29
192.4
1
163.
91
143.
68
68.26
A. ACCOUNTING POLICIES
Significant accounting policies are summarized below:
1. Accounting Convention:
The accounts have been prepared in accordance with the historical cost convention (except for specifically
excluded treatment of accounts referred to in B 16(a) under accrual basis of accounting as per Indian
GAAP. Accounts and disclosures thereon comply with the Accounting Standards specified in Companies
(Accounting Standard) Rules, other pronouncements of
ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable.
Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of
assets, liabilities, revenue, expenses and contingent liabilities pertaining to year, the financial statements
relate to. Actual result could differ from such estimates. Any revision in
accounting estimate is recognized prospectively from current year and material revision, including its
impact on financial statement, is reported in notes to accounts in the year of incorporation of revision.
2. Fixed Assets and Depreciation:
a. Fixed assets are stated at carrying amount i.e. subject to deduction of accumulated depreciation.

24. b. Cost includes inward freight, duties, taxes and other expenses incidental to acquisition and
installation.
c. Depreciation on Fixed Assets has been provided on straight line method at rates specified in Schedule
XIV of the Companies Act and as per the useful lives of the assets estimated by the management when useful
life of the assets is deemed less except for part of 5/1 Unit Sahibabad, Alwar unit and Narenderpur unit and for
Motor Vehicles where depreciation has been provided for on written down value methods at the rates specified
in the aforesaid Schedule.
d. Fixed Assets purchased for less than Rs. 5000/- have been depreciated at the rate of 100%.
e. Patents and trademarks are being amortized over the period of ten years on straight line basis.
f. Softwares are being amortized over the period of five years on straight line basis.
g. For New Projects, all direct expenses and direct overheads (excluding services provided by employees in
Company's regular payroll) are capitalized.
h. Capital Subsidy received against fixed capital outlay is deducted from gross value of individual fixed
assets, forming part of subsidy scheme granted, by way of proportionate allocation of subsidy amount
thereon. Depreciation is charged on net fixed assets after deduction of subsidy
amount.
i. During sale of fixed assets, any profit earned towards excess of sale value over gross block of assets, is
transferred from profit & loss account to capital reserve.
3. Impairment/discarding of assets:
The Company identifies impairable fixed assets based on cash generating unit concept for tangible fixed
assets and asset specific concept for intangible fixed assets at the year-end in term of clause 5 to 13 of AS -28
and clause 83 of AS- 26 respectively for the purpose of arriving at impairment loss thereon, if any, being
the difference between the book value and recoverable value of relevant assets. Impairment loss, when
crystallizes, is charged against revenue of the year.
Apart from test of impairment within the meaning of AS 28, individual tangible fixed assets of various
CGU's are identified for writing down on the ground of obsolescence, damage, redundancy & un-usability at
the year end.
4. Financial Assets & Liabilities:
a. Financial assets held for trading:
These assets relate to equity instruments, mutual funds held for short term which are carried at fair value. The
difference of cost and fair value is accounted for as loss or income, forming part of transitional provisions,
adjustable against opening balance of General Reserves.
b. Financial assets available for sale:
These relate to non-current investments eg. Equity Instruments/ Government Securities held for long term
carried at fair value. The difference between cost and fair value is accounted for in investment revaluation
reserve forming part of equity.
c. Other financial Assets/Liabilities - Loans, Receivables, Payables:

25. These include all remaining items of assets and liabilities, (excluding equity, fixed (tangible & intangible)
assets inventories and specific exemptions referred to in note 4(g) to follow), being carried at amortized cost.
The difference between unamortized value and amortized value is
accounted for as a loss or income, forming part of transitional provisions, adjustable against opening balance of
revenue reserves.
No amortization is made for financial assets/ liabilities bearing floating rate of interest or where
amortization has immaterial impact on profitability in AS - 30.
d. Financial Instruments:
These relate to off - balance sheet exposure towards foreign exchange of the nature of currency fluctuation
or forward contract, being mark to market, entered into with the object of hedging against adverse currency
fluctuations (not being for trading and speculation) in respect of
import/export commitments.
Financial Instruments are held at fair value and the profit or loss arising on year closing date on account of
difference between contract rate and exchange rate (the latter being the fair value) on open contracts is
recognized as profit or loss of the year appearing under broad head of
'Finance Cost'.
e. Fair value of financial assets - held for trading is determined on the basis of market quotation/NAV issued by
investees. In the absence of scope of determination of fair value, same are held at cost.
f. Amortized cost is carried at by way of discounting future cash inflow/outflow in respect of relevant
asset/liability as on reporting date against application of effective rate of interest.
g. Interest in subsidiaries/associates/joint venture, employees related dues, obligation under financial lease (in
the capacity of lessee/ lessor) have been left out of the purview of treatments referred to for financial
assets/liabilities because of different accounting standards dealing with
them.
h. No amortized value of fiscal provision or advance tax has been considered because of period of
uncertainty of their adjustment.
5. Investments in Subsidiaries, Joint Ventures and Associates:
These are held for long term and valued at cost reduced by diminution of permanent nature therein, if any. No
profit or losses of subsidiaries are accounted for.
6. Deferred Entitlement on LTC :
In terms of the opinion of the Expert Advisory Committee of the ICAI, the Company has provided liability
accruing on account of deferred entitlement towards LTC in the year in which the employees concerned
render their services.
7. Inventories:
Stocks are valued at lower of cost or net realizable value. Basis of determination of cost remain as
follows:
a. Raw materials, Packing : Moving weighted Average Basis materials, Stores & Spares
b. Work-in-process: Cost of input plus overhead up to the stage of completion.

26. c. Finished goods: Cost of input plus appropriate overheads.
8. 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.
9. Retirement Benefits:
Liabilities in respect of retirement benefits to employees are provided for as follows:-
a. Defined Benefit Plans:
i) Leave Salary of employees on the basis of actuarial valuation as per AS 15 (revised).
ii) Post separation benefits of directors, which is of the nature of long term benefit, on the basis of actuarial
valuation as per AS 15 (revised).
iii) Gratuity Liability on the basis of actuarial valuation as per AS 15 (revised)
b. Defined Contribution Plans:
i) Liability for superannuation fund on the basis of the premium paid to insurance company in respect of
employees covered under Superannuation Fund Policy.
ii) Provident fund & ESI on the basis of actual liability accrued and paid to trust / authority.
c. VRS, if paid, is charged to revenue in the year of payment.
10. Recognition of Income and expenses:
a. Sales and purchases are accounted for on the basis of passing of title to the goods.
b. Sales comprise of sale price of goods including excise duty but exclude trade discount and sales tax / VAT.
c. All items of incomes and expenses have been accounted for on accrual basis except for those income
stipulated for recognition on realization basis on the ground of uncertainty under AS-9 or income or
expenses referred to in appropriate paragraphs of A (4) above.
11. Income Tax & Deferred Taxation:
The liability of Company on account of income tax is estimated considering the provisions of the Income
Tax Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences
being the difference between taxable income and accounting income that originate in one year and capable of
reversal in one or more subsequent years.
12. 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/court for which no reliable estimate can be made of the
amount of the obligation or which are remotely poised for crystallization are not
provided for in accounts but disclosed in notes to accounts.

27. However, present obligation as a result of past event with possibility of outflow of resources, when reliably
estimable, is recognized in accounts.
13. Foreign Currency Translation:
a. Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date of
transactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-a-vis reporting currency
between the date of transaction and that of payment is charged to Profit & Loss Account.
b. 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 accounted for in the Profit & Loss Account.
c. Increase / decrease in foreign currency loan on account of exchange fluctuation are debited / credited to
profit and loss account.
d. Impact of exchange fluctuation is separately disclosed in notes to accounts.
14. Employee Stock Option Purchase (ESOP):
Aggregate of quantum of option granted under the scheme in monetary term (net of consideration of issue to
be paid in cash) in terms of intrinsic value has been shown as Employees Stock Option Scheme outstanding
in Reserve and Surplus head of the Balance Sheet with corresponding debit in deferred Employee
Compensation under ESOP appearing as Miscellaneous Expenditure under broad head of non-current assets
as per guidelines to the effect issued by SEBI.
a. With the exercise of option and consequent issue of equity share, corresponding ESOP outstanding is
transferred to share premium account.
b. Employees' contribution for the nominal value of share in respect to option granted to employees of
subsidiary Company is being reimbursed by subsidiary companies to holding Company.
15. Merger / Amalgamation:
Merger / Amalgamation (of the nature of merger) of other Company / body corporate with the Company are
accounted for on the basis of purchase method, the assets / liabilities being incorporated in terms of values of
assets and liabilities appearing in the books of transferor entity on the date of such merger / amalgamation for
the purpose of arriving at the figure of goodwill or amalgamation reserve.
16. Miscellaneous Expenditure:
* Deferred Employees Compensation under ESOP is amortized on straight line basis over vesting period.
* Share issue expenses and research fee paid to technical collaborators are charged to revenue in the year of is
occurrence.
B. NOTES TO ACCOUNTS

28. 1. Building constructed on leasehold land included in the value of building shown in Fixed Assets
Schedule:
as at March 31, 2012 As at March 31, 2011 Cost/Revalued 18745 17832
Written Down 14718 14220
2. Loans and Advances include Rs.49 (Previous year Rs.49 ) paid by the Company to Excise authorities on
behalf of Sharda Boiron Laboratories Limited, now known as SBL Limited, in respect of excise duty
demand of Rs. 68 raised by the District Excise Officer, Ghaziabad, against the Company and Sharda Boiron
Laboratories Limited. The Hon'ble Supreme Court of India had concurred with the order of the District
Excise Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the Hon'ble Supreme Court of India,
which was also decided against the Company. Pursuant to the indemnity bond executed by M/s Sharda
Boiron Laboratories Limited in favour of the Company and as per the terms and conditions of the contract
executed with them, the recovery proceedings have been initiated by the Company against Sharda Boiron
Laboratories Limited for Rs. 49 by invoking the arbitration clause. The matter is pending before Hon'ble
High Court of Delhi for the appointment of an arbitrator. The balance amount of Rs. 21 along with interest
demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to
Excise Authorities. During the year 1991-92 the Company had received a refund of Rs. 6, pursuant to the
decision of Hon'ble Supreme Court in this regard. Necessary adjustments in respect of recovery/refund will
be made as per the arbitration proceedings.
3. a. Further to para A (3) above, Company has assessed recoverable value of each cash generating units
(CGUs) and each intangible assets based on value-in-use method. Such assessment indicated the value in
use of corresponding assets higher than corresponding carrying cost of assets thereby ruling out the cause of
further arriving at their net-selling- price and exigency of provision against impairment loss.
b. CGUs include Narenderpur plant, Sahibabad plant, each of plants situated at Nashik /Baddi/Jammu,
Rudrapur Plant, Silvasa Plants, Pitampur Plant, Kanpur Plant, Alwar Plant, Newai Plant and Jalpaiguri
Plant.
c. Annual discount rate considered for arriving at value-in-use of assets of each CGUs is 7.50% i.e the
average interest rate of external borrowing plus risk factor @ 2.00 % per annum.
d. Plant & Machineries worth Rs. 50 lacs (previous year Rs. 2 lacs) in terms of written down value have
been discarded on the ground of losing utility.
4. Contingent Liabilities :
a. Claims against the Company not acknowledged as debts:
i. In respect of civil suits filed against the Company Rs. 770 (previous year Rs. 772)
ii. In respect of claims by employees Rs. 44 (previous year Rs. 30)
iii. In respect of excise duty disputes pending with various judicial authorities Rs. 7611 (previous year Rs.
5035).
iv. In respect of Sales Tax under appeal Rs. 1070 (previous year Rs. 1202)

29. v. In respect of Income tax under appeal Rs. 319 (previous year Rs. 940)
vi. In respect of letters of credit Rs. 390 (previous year Rs. 179)
b. Guarantees given:
In respect of Guarantees furnished by the Company Rs. 122303 (previous year Rs. 93172)
c. Information pursuant to AS 29:
Brief particulars of provisions on disputed liabilities:
5. The Company's freehold land situated at Sahibabad measuring about 7.58 acres was acquired by U.P.
Government under Land Acquisition Act and the State Government had allotted and given possession of
about 4.72 acres of land on lease to the Company in lieu of acquired land. The Company has filed a claim
for compensation of Rs. 572 before the Office of Special Land Acquisition Officer, Ghaziabad against the
land so acquired. However, keeping in view the generally accepted accounting practice, the said claim has
not been considered in the books of accounts.
6. Extra ordinary items relates to investment in H&B Stores limited, a wholly owned subsidiary, written off
on account of Honorable High Court Delhi approving investee's application for reduction for share capital
against cancellation of 448938127 number of equity shares of Re 1 each not being represented by tangible/
intangible assets.
G. The basis used for determination of expected rate of return is average return on long term investment in
Government bonds
H. The estimate of future salary increase take in-to account regular increment, promotional increases and
Inflationary consequence over price index.
I. Demographics assumptions take in to account mortality factor as per LIC (1994-96) ultimate criteria,
employees and normal retirement age at 58.
J. Particulars on planned assets have been ascertained on the basis of last confirmation from Insurance
Company.
K. CY - Current year, PY - Previous year
A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. And Dabur International Ltd.
Rs.29451 and Rs.186 (Rs. 21719 & 241) repectively.
B. Item referred to in 2 above includes Sales to, Dabur International Ltd., Weikfieid International (UAE)
Ltd., Naturelle LLC, African Consumer Care Ltd., Asian Consumer Care Pakistan (Pvt) Ltd. Rs. 774, Rs.
354, Rs.1448, Rs. 540, and Rs.805 respectively (Rs. 651, Rs. 421, Rs. 869, Rs. 661, & Rs. 384
respectively).
C. Items reffered to in 5 above includes Interest received on loan given to Dermoviva Skin Essentials Inc.
and Dabur International Limited, Rs. 9 and Rs. Nil respectively (Rs. 1 & Rs. 246).
D. Item referred to in 10 above relates to loan given to Dabur International Rs.Nil (26854) and H & B
Stores Ltd. Rs.2650 (Rs. 1050).

30. E. Item referred to in 11 above relates to loan repaid by Dabur International Rs.Nil (26854) and Dermoviva
Skin Essentials Inc. Rs.Nil (Rs.390).
F. Items referred to in 15 above includes Gaurantees & Collaterals to Dabur Egypt, Naturelle LLC, Asian
Consumer Care Pakistan Ltd., Asian Consumer Care Pvt. Ltd. , Dermoviva Skin Essentials INC., Dabur
International Ltd., Dabur Lanka (Pvt) Ltd. and Forum 1 Aviation Ltd. Rs. 3372, Nil, Nil, Nil, Rs. 54940,
Rs. 59103, Rs. 3561 & Rs. 714 respectively (Rs.1492, Nil, Nil, Nil, Rs. 45259, Rs. 45036, Nil & Rs. 714),
which also includes adjustment due to exchange rate fluctuation.
G. Figures in bracket relate to Previous year.
7. Partner, Holding 1% share of the firm Balsara International, a partnership firm wherein investment of the
Company amounted to Rs. 49 (99% share ), resigned during the year, with his share of dues been paid off.
Being reduced to the status of sole proprietary firm, it became imperative to consolidate the assets and
liabilities therein in Company's account merged herein, in this connection, are net fixed assets Rs. 22, Cash
and Bank balances Rs. 2, Advance Tax Rs. 33 and Trade Creditors Rs. 7. Excess of investment over net
assets inherited, working out of Rs. 16, has been charged off to General Charges.
8. Exchange gain works out to Rs. 2275 (Previous Year Rs. 93) and exchange loss Rs. 2345 (Previous year
Rs. 2027) and their net impact has been debited to Profit & Loss Account under the head "Finance Cost"
ii) Lease rent debited to Profit & Loss account of the year. Rs. 67 (Previous year Rs. 58)
iii) Irrevocable lease agreement relates of flat & vehicle, lease period not exceeding five years in respect of
any arrangement.
iv) Figures in bracket relate to previous year.
9. AS 30 , 31 & 32:
a. Pursuant to implementation of AS 30, 31 and 32 all assets and liabilities excluding equity, fixed assets
(tangible and intangible), inventories and specific exceptions referred to in accounting policy no. A (4 ) of
schedule 23 have come to be recognized within the purview of financial assets and financial liabilities. This
also includes off balance sheet exposures in derivative instruments referred to in accounting policy no.
A( 4)(d), schedule 23. This read with deferred tax and impairment provision on tangible and intangible
assets, marks departure from historic concept of accounts otherwise followed by the Company.
b. Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not
being receivable/ payable in short term context), call for measurements at amortized value as defined in
accounting policy no. 4 (b). Schedule 23 unless amortized value does not materially differ from
unamortized value or assets /liabilities are held at floating rate of interest.
Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on
date, hereby described as amortized value, has been considered on the basis of appropriate Government
Bond rate ruling as on 31-03-2012 i.e. 8.4 %. Such benchmarking of effective rate is attributed to expected
cognizance taken by government of the market risk , commodity price index, foreign exchange reserve,
inflationary & deflationary impact on internal rates & cyclic / non cyclic fluctuations in fiscal & monetary
system for the purpose of arriving at the rate of bond.
c. Implementation of AS 30, 31 & 32 led to change in the treatment of financial assets / liabilities /
instruments which during the year added to the opening General reserve , deferred tax liability and
investment revaluation reserve by Rs. 76, Rs. 37 & Rs. 78 respectively with consequent rise in current

31. investment, non-current investment by Rs. 65 and Rs. 78 respectively and decline in long term borrowing
by Rs. 48.
e. This being the first financial year of implementation of above accounting standard figures of previous
years are not applicable for table in 'b' above.
f. Unrealized hedging loss forming part of financial assets of Rs. 53 against off balance sheet exposure
appear in the current liabilities in the balance sheet.
g. Value of equity instruments, financial assets not carried at fair value except for those having negligible
impact or bearing floating rate of interest Rs. 107 towards non-current investment Rs. 3000 of term deposit
with bank maturing little after one year.
h. All financial assets and financial liabilities, not being referred to in above table, being short term in
nature and not tradable in primary or secondary market, have been carried at unamortized cost.
i. This being the first year of implementation of AS 30, 31 & 32 question of change in market value, fair
value and market risk vis a vis previous year does not occur.
j. The Company has no exposure involving credit risk included inloan or receivable.
k. Rs. 8 of fixed deposit is pledged with government authorities towards excise bond.
l. Outstanding overseas exposure hedged by forward option/ contract against adverse currency fluctuation:
10. Investment in Joint Venture Information (pursuant to AS-27) :
(a) The Company is a party to joint venture agreement controlling the management of Forum 1 Aviation
Limited, a domestic jointly controlled corporate entity (JCE) with part of its operation akin to jointly
controlled operation, the main object of the JCE being maintenance of aircraft for use of venturers or
otherwise. The contributions of venturers are towards capital build up of the JCE and periodic contribution
towards cost of maintenance of air craft. Variable component of cost of maintenance is borne by user of the
aircraft in proportion to their actual usage and fixed component is shared by all the venturers in proportion
to their capital contribution. The participation of the venturers in the affairs of the management of the JCE
is through representation in the composition of Board of Directors as agreed in share holder's agreement.
(b) Share of the Company in assets, outside liability, net worth, income and expenses not being accounted
for herein works out to Rs. 1011 (Previous year 1219), Rs. 441 (Previous year 553), Rs. 114 (Previous year
173), Rs. 396 (Previous year 422) and Rs. 362 (Previous year 357) respectively in respect of year under
audit as per un-audited accounts of the JCE.
(c) Stake of the Company in terms of percentage of total subscribed and paid up capital of JCE is 14.28%.
Said amount (Rs. 456) appears under investment head in balance sheet of the Company.
(d) Company's commitment towards revenue expenditure of the JCE amounting to Rs. 439 (Previous year
Rs. 452) has been charged to profit and loss account under the head general charges.
(e) The Company has furnished guarantee bond for Rs. 714 (previous year Rs. 714) in respect of borrowing
availed by the JCE for acquisition of aircraft which forms part of para B 4 (b)(i) of this schedule.
(f) No income from said investment, unless realized in cash, is recognized in this stand alone account.

32. 11. Trade Payables include Creditors for goods and services.
12. Information pursuant to AS-17 issued by ICAI (Refer Page no. 104).
13. Amount due to Micro & Small enterprises under MSMED Act, 2006 is Rs. 566 (previous year Rs. 172).
Identification of such enterprises have been made on the basis of their disclosure in correspondences, bills
to the effect as mandated for them. No interest liability has been accrued on account of default in payment
to relevant enterprises like previous year.
14. Sale of Services Rs. 41 CY relate to hiring charges paid by customers for using Company's machines.
15. (a) Figures for the previous year have been rearranged/ regrouped as and when necessary in terms of
current year's grouping.
(b) Figures are rounded off to nearest rupees lacs.
KEY RATIOS
Value of Liquidity Ratio for Dabur India Ltd
Liquidity Ratio Description Formula 2012 2011 2010 2009 2008
Current Ratio Measures the ability of a
firm to meet debt
requirements as they come
due
1.148 1.061 1.053 1.122 0.949
Quick or Acid-
Test Ratio
Measures ability to meet
short-term cash needs more
rigorously by eliminating
inventory
0.658 0.562 0.710 0.728 0.604
Cash Flow
Liquidity
Ratio
Focuses on ability of the
firm to generate operating
cash flows as a source of
liquidity
0.831 0.589 0.761 0.704 0.655
Average
Collection
Period
Helps gauge liquidity of
accounts receivable and
provides information about
a company’s credit policies
21.859 22.633 16.676 17.115 17.600
Days
Inventory
Held
Measures the efficiency of
the firm in managing its
inventory
88.680 92.479 74.621 71.713 66.671
Days Payable
Outstanding
Offers insight into a firm’s
pattern of payments to
suppliers
98.166 99.360 87.268 77.113 86.087
Value of Activity Ratio for Dabur India Ltd
Activity Ratio Description Formula 2012 2011 2010 2009 2008

33. Accounts
Receivable
Turnover
Measures efficiency of
firm’s collection and
credit policies
16.698 16.127 21.888 21.326 20.739
Inventory
Turnover
Measures firm’s
efficiency in managing
its inventory
4.116 3.947 4.891 5.090 5.475
Accounts
Payables
Turnover
Helps to gain insight
into a firm’s pattern of
payment to suppliers
3.718 3.674 4.183 4.733 4.240
Fixed Asset
Turnover
Assesses effectiveness
in generating sales from
investments in fixed
assets
6.395 6.562 6.333 7.772 7.490
Total Asset
Turnover
Assesses effectiveness
in generating sales from
investments in all assets
1.411 1.454 2.212 1.979 2.414
Value of Leverage Ratio for Dabur India Ltd
Leverage Ratio Description Formula 2012 2011 2010 2009 2008
Debt Ratio Considers the
proportion of all assets
that are financed with
debt
0.509 0.510 0.420 0.390 0.388
Long-term Debt
to Total
Capitalization
Reveals the extent to
which long-term debt
is used for the firm’s
permanent financing
(both long-term debt
and equity)
0.001 0.005 0.128 0.161 0.032
Debt to Equity Measures the riskiness
of the firm’s capital
structure in terms of
the relationship
between the funds
supplied by creditors
(debt) and investors
(equity)
1.036 1.039 0.723 0.640 0.633
Times Interest
Earned
Indicates how well
operating earnings
cover fixed interest
expenses
42.633 50.688 40.068 30.370 34.440
Cash Interest
Coverage
Measures how many
times interest
payments can be
covered by cash flow
from operations before
interest and taxes
46.005 40.245 44.681 26.643 33.405
Fixed Charge
Coverage
Broader measure of
how well operating
earnings cover fixed
charges
42.633 50.688 16.737 14.604 16.579

34. Value of Profitability Ratio for Dabur India Ltd
Profitability Ratio Description Formula 2012 2011 2010 2009 2008
Gross Profit
Margin
Measures ability of a
company to control
costs of inventories or
manufacturing of
products and to pass
along price increases
through sales to
customers
0.453 0.480 0.507 0.479 0.487
Operating Profit
Margin
Measures overall
operating efficiency and
incorporates all of the
expenses associated
with ordinary business
activities
0.161 0.186 0.189 0.183 0.181
Net Profit Margin Measures profitability
after consideration of all
revenue and expense,
including interest, taxes,
and non-operating items
0.132 0.142 0.147 0.148 0.148
Cash Flow Margin Measures ability to
translate sales into cash
0.139 0.108 0.175 0.135 0.150
Return on Total
Assets (ROA) or
Return on
Investment
(ROI)
Measures overall
efficiency of firm in
managing investment in
assets and generating
profits
0.186 0.206 0.326 0.293 0.358
Return on Equity
(ROE)
Measures rate of return
on stockholders’
investment
0.378 0.420 0.562 0.481 0.585
Cash Return on
Assets
Measures firm’s ability
to generate cash from
the utilization of its
assets
0.196 0.157 0.387 0.267 0.363
Value of Market Ratio for Dabur India Ltd
Market Ratio Description Formula 2012 2011 2010 2009 2008
Price-to-Earnings Relates earnings per
common share to the
market price at which the
stock trades, expressing
the “multiple” that the
stock market places on a
firm’s earnings
43.429 38.115 17.054 12.276 16.114
Dividend Payout Determined by the
formula cash dividends
per share divided by
earnings per share
56.456 43.834 34.068 21.483 24.172

35. Dividend Yield Shows the relationship
between cash dividends
and market price
1.300 1.150 1.998 1.750 1.500
Analysis
• Debt ratio is 0.509 which indicates that 50% of the business is financed through outsider’s
fund which indicates that the borrowing cost of the company is low
• Operating profit is 16% as compared to 45% of g.p. ratio which indicates that the company is
losing a huge portion of the profit in administrating and selling cost
• Average collection period is of 21 days as compared to 98 days on account of payment period
which means that company is availing a huge portion of short term finance through the mode
of creditors
• Debt ratio of the company is continuously increasing which means that the company is in the
mode of reducing its cost of borrowings

36. ITC LIMITED
ITC Limited (BSE: 500875) or ITC is an Indian public conglomerate company headquartered
in Kolkata, West Bengal, India.[2]
Its diversified business includes four segments: Fast Moving
Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. ITC's annual
turnover stood at $7 billion and market capitalization of over $34 billion. The company has its
registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry

37. with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was rechristened
to India Tobacco Company in 1970 and then to I.T.C. Limited in 1974.
The company is currently headed by Yogesh Chander Deveshwar. It employs over 29,000 people at
more than 60 locations across India and is listed on Forbes 2000. ITC Limited completed 100 years on
24 August 2010.
ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business and Information Technology. While ITC is an
outstanding market leader in its traditional businesses of Hotels, Paperboards, Packaging, Agri-
Exports and Cigarettes, it is rapidly gaining market share even in its nascent businesses of Packaged
Foods & Confectionery, Branded Apparel, Personal Care and Stationery. Meera Shankar, will join the
board of ITC Ltd as the first women director in its history. She will be an additional non-
executive director of the cigarettes-FMCG-hotel major.
BALANCE SHEET
Year Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
SOURCES OF FUNDS :
Share Capital + 781.84 773.81 381.82 377.44 376.86

38. Reserves Total + 18,676.7
4
15,716.0
9
14,076.4
9
13,650.7
2
11,910.9
4
Equity Share Warrants 0 0 0 0 0
Equity Application Money 0 0 0 0 0
Total Shareholders Funds 19,458.5
8
16,489.9
0
14,458.3
1
14,028.1
6
12,287.8
0
Minority Interest 157.09 140.82 126.38 129.96 113.21
Secured Loans + 0 1.06 0.95 18.86 15
Unsecured Loans + 105.38 88.69 109.81 167.81 209.92
Total Debt 105.38 89.75 110.76 186.67 224.92
Policy Holders Fund 0 0 0 0 0
Other Liabilities 172.69 161.8 0 0 0
Total Liabilities 19,893.7
4
16,882.2
7
14,695.4
5
14,344.7
9
12,625.9
3
APPLICATION OF FUNDS :
Gross Block + 15,519.3
8
14,018.9
0
12,992.7
4
11,550.6
0
9,819.51
Less: Accumulated Depreciation + 5,506.29 4,841.51 4,212.79 3,661.85 3,148.36
Less: Impairment of Assets 0 0 0 0 0
Net Block + 10,013.0
9
9,177.39 8,779.95 7,888.75 6,671.15
Lease Adjustment -5.67 -5.67 -5.93 -6.12 -8.37
Capital Work in Progress+ 2,396.46 1,367.95 1,023.58 1,243.12 1,156.51
Producing Properties 0 0 0 0 0
Investments + 5,206.83 4,867.80 5,000.48 2,507.07 2,607.89
Current Assets, Loans & Advances
Inventories + 6,428.11 5,734.80 5,092.02 4,794.33 4,268.27
Sundry Debtors + 1,203.84 1,086.68 1,025.51 817.32 892.96
Cash and Bank+ 3,130.12 2,426.87 1,348.58 1,316.93 776.82
Loans and Advances + 597.57 528.79 1,552.57 1,595.93 1,409.45
Total Current Assets 11,359.6
4
9,777.14 9,018.68 8,524.51 7,347.50

39. Less : Current Liabilities and
Provisions
Current Liabilities + 4,944.90 4,654.00 3,754.20 3,248.42 2,984.34
Provisions + 4,359.10 4,057.10 4,586.75 1,703.84 1,621.26
Total Current Liabilities 9,304.00 8,711.10 8,340.95 4,952.26 4,605.60
Net Current Assets 2,055.64 1,066.04 677.73 3,572.25 2,741.90
Miscellaneous Expenses not
written off +
0 0 0.21 0.32 0.42
Deferred Tax Assets 442.34 422.68 351.61 305.9 297.87
Deferred Tax Liability 1,308.11 1,220.75 1,132.18 1,166.50 841.44
Net Deferred Tax -865.77 -798.07 -780.57 -860.6 -543.57
Other Assets 1,093.16 1,206.83 0 0 0
Total Assets 19,893.7
4
16,882.2
7
14,695.4
5
14,344.7
9
12,625.9
3
Contingent Liabilities+ 428.93 341.29 424.07 392.82 479.98
PROFIT AND LOSS ACCOUNT
Year Mar
12(12)
Mar
11(12)
Mar
10(12)
Mar
09(12)
Mar
08(12)
INCOME :
Sales Turnover + 36,989.7
2
32,288.6
5
27,624.6
8
24,363.7
1
22,308.5
4
Excise Duty 10,437.9
3
9,713.95 8,488.81 7,807.57 7,670.51
Net Sales 26,551.7
9
22,574.7
0
19,135.8
7
16,556.1
4
14,638.0
3
Other Income + 784.35 536.1 643.8 526.22 599.84
Stock Adjustments + 86.42 272.72 -194.77 160.9 2.93
Total Income 27,422.5
6
23,383.5
2
19,584.9
0
17,243.2
6
15,240.8
0
EXPENDITURE :

40. Raw Materials + 9,731.70 8,433.70 6,792.19 6,066.58 5,924.82
Power & Fuel Cost+ 476.91 446.64 410.37 415.67 331.61
Employee Cost + 1,944.28 1,708.50 1,468.80 1,326.76 1,067.70
Other Manufacturing Expenses + 1,110.86 1,004.83 877.97 838.73 347.19
Selling and Administration Expenses
+
3,189.96 2,884.71 2,437.98 2,341.73 1,767.66
Miscellaneous Expenses + 953.23 679.51 691.5 711.15 725.28
Less: Pre-operative Expenses
Capitalised+
0 0 75.31 72.55 112.75
Total Expenditure 17,406.9
4
15,157.8
9
12,603.5
0
11,628.0
7
10,051.5
1
Operating Profit 10,015.6
2
8,225.63 6,981.40 5,615.19 5,189.29
Interest + 101.99 91.67 91.79 49.57 41.24
Gross Profit 9,913.63 8,133.96 6,889.61 5,565.62 5,148.05
Depreciation+ 745.48 699.09 643.9 580.86 472.87
Minority Interest (before tax) 0 0 0 0 0
Profit Before Tax 9,168.15 7,434.87 6,245.71 4,984.76 4,675.18
Tax+ 2,777.57 2,348.20 2,117.50 1,276.68 1,423.75
Fringe Benefit Tax+ 0 -0.25 -0.38 27.41 0
Deferred Tax+ 68.19 17.5 -82.19 321.29 73.26
Net Profit 6,322.39 5,069.42 4,210.78 3,359.38 3,178.17
Minority Interest (after tax) 75.53 61.1 48.84 40.93 28.27
Profit/Loss of Associate Company 11.28 9.61 6.24 6.14 7.86
Net Profit after Minority Interest &
P/L Asso.Co.
6,258.14 5,017.93 4,168.18 3,324.59 3,157.76
Extraordinary Items + 138.25 62.43 -8.62 3.63 10.5
Adjusted Net Profit 6,119.89 4,955.50 4,176.80 3,320.96 3,147.26
Adjst. below Net Profit + -3.6 43.06 20.83 8.3 57.71
P & L Balance brought forward 624.34 77.1 785.71 652.56 543.02
Statutory Appropriations 0 0 0 0 0

41. Appropriations + 4,755.77 4,513.75 4,897.62 3,199.74 3,132.82
P & L Balance carried down 2,123.11 624.34 77.1 785.71 625.67
Dividend 3,518.29 3,443.47 3,818.18 1,396.53 1,319.01
Preference Dividend 0 0 0 0 0
Equity Dividend (%) 450 445 1,000.00 370 350
EPS before Minority Interest (Unit
Curr.)
7.36 5.83 9.36 8.24 7.8
EPS before Minority Interest (Adj)
(Unit Curr.)
1.78
EPS after Minority Interest (Unit
Curr.)
7.27 5.76 9.25 8.15 7.75
EPS after Minority Interest (Adj)
(Unit Curr.)
1.78
Book Value (Unit Curr.) 24.76 21.18 37.71 37.01 32.44
CASH FLOW
Mar-
12
Mar-
11
Mar-
10
Mar-
09
Mar-08
Cash Flow Summary
Cash and Cash Equivalents at Beginning
of the year
2362.2
7
1304.6
1
1278.4
4
741.55 1086.5
Net Cash from Operating Activities 5977.1
3
5508.7
4
4457.2
6
3498.4
5
3006.68994
1
Net Cash Used in Investing Activities -1977.2 -871.34 -
3360.3
2
-1376.5 -
1967.15002
4
Net Cash Used in Financing Activities -
3316.7
1
-
3579.7
4
-
1070.3
8
-
1585.0
6
-
1349.21997
1

42. Net Inc/(Dec) in Cash and Cash
Equivalent
683.22 1057.6
6
26.56 536.89 -
309.679992
7
Cash and Cash Equivalents at End of the
year
3045.4
9
2362.2
7
1305 1278.4
4
776.820007
3
ACCOUNTING POLICY
1.Basis of Accounting
To prepare financial statements in accordance with the historical cost convention modified by
revaluation of certain Fixed Assets as and when undertaken.
All assets and liabilities have been classified as current or non-current as per the Company''s normal
operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956 based
on the nature of products and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents.
2. Fixed Assets
To state Fixed Assets at cost of acquisition inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition. In respect of major projects involving construction, related
pre-operational expenses form part of the value of assets capitalised. Expenses capitalised also include
applicable borrowing costs, if any.
To capitalise software where it is expected to provide future enduring economic benefits.
Capitalisation costs include licence fees and costs of implementation / system integration services.
The costs are capitalised in the year in which the relevant software is implemented for use.
To charge off as a revenue expenditure all upgradation/ enhancements unless they bring similar
significant additional benefits.
3. Depreciation
To calculate depreciation on Fixed Assets, Tangible and Intangible, in a manner that amortises the
cost of the assets after commissioning, over their estimated useful lives or, where specified, lives
based on the rates specified in Schedule XIV to the Companies Act, 1956, whichever is lower, by
equal annual instalments. Leasehold properties are amortised over the period of the lease.
To amortise capitalised software costs over a period of five years.
4. Revaluation of Assets
As and when Fixed Assets are revalued, to adjust the provision for depreciation on such revalued
Fixed Assets, where applicable, in order to make allowance for consequent additional diminution in
value on considerations of age, condition and unexpired useful life of such Fixed Assets; to transfer to
Revaluation Reserve the difference between the written up value of the Fixed Assets revalued and
depreciation adjustment and to charge Revaluation Reserve Account with annual depreciation on that
portion of the value which is written up.

43. 5. Impairment of Assets
To provide for impairment loss, if any, to the extent, the carrying amount of assets exceed their
recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use.
Value in use is the present value of estimated future cash flows expected to arise from the continuing
use of an asset and from its disposal at the end of its useful life.
Impairment losses recognised in prior years are reversed when there is an indication that the
impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an
increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that
would have been determined (net of amortisation or depreciation) had no impairment loss been
recognised in previous years.
6. Investments
To state Current Investments at lower of cost and fair value; and Long Term Investments, including
in Joint Ventures and Associates, at cost. Where applicable, provision is made to recognise a decline,
other than temporary, in valuation of Long Term Investments.
7. Inventories
To state inventories including work-in-progress at lower of cost and net realisable value. The cost is
calculated on weighted average method. Cost comprises expenditure incurred in the normal course of
business in bringing such inventories to its location and includes, where applicable, appropriate
overheads based on normal level of activity. Obsolete, slow moving and defective inventories are
identified at the time of physical verification of inventories and, where necessary, provision is made
for such inventories.
8. Revenue from sale of products and services
To recognise Revenue at the time of delivery of goods and rendering of services net of trade
discounts to customers and Sales tax/ Value added tax recovered from customers but including excise
duty on goods payable by the Company. Net revenue is stated after deducting such excise duty.
9. Investment Income
To account for Income from Investments on an accrual basis, inclusive of related tax deducted at
source. To account for Income from Dividends when the right to receive such dividends is
established.
10. Proposed Dividend
To provide for Dividends (including income tax thereon) in the books of account as proposed by the
Directors, pending approval at the Annual General Meeting.
KEY RATIO

44. ANALYSIS OF FINANCIAL STATEMENT
1 .QUICK RATIO IS JUST .53 AS COMPARED TO 1.22 FOR CURENT RATIO, WHICH MEANS
THAT A SUBSTANTIAL AMOUNT OF CURENT ASSET AMOUNT IS INVESTED IN RAW
MATERIAL
2. COMPANY HAS INVENTORY HELD FOR ABOUT 134 DAYS WHICH MEANS THAT A
HUGE PORTION OF AMOUNT GETS BLOCKED IN CURRENT ASSET
3. COMPANY HAS DEBT RATIO OF JUST 0.052 WHICH IMPLIES THAT THE COST OF
BORROOWING FOR COMPANY IS HIGH AS A GREAT PORTION OF BUSINESS IS
FINANCED THROUGH OWNER’S EQUITY
4. COMPANY HAS MAINTAINED ITS G.P. RATIOTO ABOUT 35% WHICH IMPLIES
EFIICIENCY IN THE OPERATION OF MANUFACTURING ACTIVITY OF THE
ORGANISATION.
RATIOS
Current Ratio 1.220942 1.122377 1.081253 1.721337 1.59534
Quick Ratio 0.530044 0.464045 0.470769 0.753228 0.668584
Cash Flow Liquidity ratio 0.978853 0.910977 0.696065 0.97236 0.821502
Average Collection Period 16.54885 17.57003 19.56071 18.0188 22.266
Days Inventory Held 134.7888 138.0932 147.466 150.4919 154.9935
Days Payable Outstanding 31.77987 36.08537 105.1033 98.31022 104.4785
Account Receivable turnover 22.05591 20.77401 18.65986 20.25662 16.39271
Accounts Payable Turnover 8.751542 7.736489 2.631228 2.761145 2.666273
Inventory Turnover 2.063398 2.021635 1.875352 1.803743 1.79729
Fixed assets turnover 2.65 2.46 2.18 2.10 2.19
Total Assets Turnover 1.334681 1.337184 1.302163 1.154157 1.159363
Debt Ratio 0.005297 0.005253 0.007472 0.011698 0.016626
Capital Employed 0.005297 0.005316 0.007537 0.013013 0.017814
gross profit ratio 37.33696 36.03131 36.00364 33.61665 35.16901
Operating Profit Ratio 37.72107 36.43738 36.48332 33.91606 35.45074
Net Profit Ratio 23.81154 22.4562 22.00464 20.29084 21.71173
Return on Investments 31.7808 30.02807 28.65363 23.41882 25.17177
Return on Equity 32.49153 30.74258 29.1236 23.9474 25.86443
Cash Return on Assets 0.300453 0.326303 0.303309 0.243883 0.238136
Price to Earning 14.13043 15.78045 13.99573 22.08738 28.20513

45. HINDUSTAN
UNILEVER LIMITED
Hindustan Unilever Limited (HUL) is India's largest consumer goods company based in Mumbai,
Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake
in HUL. Its products include foods, beverages, cleaning agents and personal care products.

46. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan
Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United
Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 16,500
employees and contributes to indirect employment of over 65,000 people. The company was renamed
in June 2007 as “Hindustan Unilever Limited”.
Lever Brothers started its actual operations in India in the summer of 1888, when crates full of
Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to
the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods
(FMCG).
Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its
products are available in over 6.4 million outlets in the country. As per Nielsen market research data,
two out of three Indians use HUL products
PROFIT AND LOSS A/C
Year Mar
12(12)
Mar
11(12)
Mar
10(12)
Mar
09(15)
Dec
07(12)
INCOME :
Sales Turnover + 24,506.4
0
20,939.3
8
18,434.3
8
21,868.8
7
14,887.8
0
Excise Duty 1,070.07 916.83 696.81 1,410.92 1,058.55
Net Sales 23,436.3
3
20,022.5
5
17,737.5
7
20,457.9
5
13,829.2
5
Other Income + 402.19 489.89 629.18 814.28 674.34
Stock Adjustments + -95.15 307.6 -75.65 320.72 91.39
Total Income 23,743.3
7
20,820.0
4
18,291.1
0
21,592.9
5
14,594.9
8
EXPENDITURE :
Raw Materials + 10,308.6
6
8,794.99 7,554.93 9,571.38 6,280.91
Power & Fuel Cost+ 299.63 278.54 247.06 304.47 201.46
Employee Cost + 1,207.44 1,016.67 1,148.12 1,259.88 799.6
Other Manufacturing Expenses + 2,603.89 2,165.89 1,769.73 2,177.07 1,500.01
Selling and Administration Expenses
+
4,745.46 4,666.41 3,912.10 3,884.14 2,578.14
Miscellaneous Expenses + 721.42 710.33 665.79 1,141.20 738.12
Less: Pre-operative Expenses 0 0 0 0 0

47. Capitalised+
Total Expenditure 19,886.5
0
17,632.8
3
15,297.7
3
18,338.1
4
12,098.2
4
Operating Profit 3,856.8 3,187.2 2,993.3 3,254.8 2,496.7
Interest + 1.65 1.01 7.47 26.45 26.49
Gross Profit 3,855.2 3,186.2 2,985.9 3,228.3 2,470.2
Depreciation+ 233.54 229.29 191.94 199.97 141.91
Minority Interest (before tax) 0 0 0 0 0
Profit Before Tax 3,621.6 2,956.9 2,793.9 3,028.3 2,328.3
Tax+ 824.14 609.1 625.31 518.97 313.07
Fringe Benefit Tax+ 0 0 0 38.17 40.23
Deferred Tax+ -2.6 41.18 4.04 -38.69 56.17
Net Profit 2,800.1 2,306.6 2,164.6 2,509.9 1,918.8
Minority Interest (after tax) 9.48 10.58 7.98 5.43 3.98
Profit/Loss of Associate Company 0 0 0 0 0
Net Profit after Minority Interest &
P/L Asso.Co.
2,790.6 2,296.0 2,156.6 2,504.5 1,914.8
Extraordinary Items + 164.29 214.87 65.52 31.44 202.23
Adjusted Net Profit 2,626.3 2,081.1 2,091.1 2,473.0 1,712.6
Adjst. below Net Profit + -6.54 0 0 0 153.99
P & L Balance brought forward 1,221.5 798.09 518.12 176.92 640.27
Statutory Appropriations 0 0 0 0 0
Appropriations + 2,153.0 1,872.5 1,876.6 2,163.3 2,532.2
P & L Balance carried down 1,852.6 1,221.5 798.09 518.12 176.92
Dividend 1,620.9 1,410.6 1,417.9 1,634.5 1,976.1
Preference Dividend 0 0 0 0 0
Equity Dividend (%) 750 650 650 750 900
EPS before Minority Interest (Unit
Curr.)
11.74 9.61 8.83 8.19 7.18
EPS before Minority Interest (Adj)
(Unit Curr.)
7.71

48. EPS after Minority Interest (Unit
Curr.)
11.69 9.56 8.79 8.17 7.16
EPS after Minority Interest (Adj)
(Unit Curr.)
7.71
Book Value (Unit Curr.) 17.03 12.66 12.23 9.8 6.92
BALANCE SHEET
Year Mar-12 Mar-11 Mar-10 Mar-09 Dec-07
SOURCES OF FUNDS :
Share Capital + 216.15 215.95 218.17 217.99 217.75
Reserves Total + 3,464.93 2,519.00 2,450.76 1,919.48 1,290.41
Equity Share Warrants 0 0 0 0 0
Equity Application Money 0 0 0 0 0
Total Shareholders Funds 3,681.08 2,734.95 2,668.93 2,137.47 1,508.16
Minority Interest 18.3 14.58 10.46 7.78 5.5
Secured Loans + 0 0 10.49 156.29 38.86
Unsecured Loans + 0 0 0.35 277.84 63.29
Total Debt 0 0 10.84 434.13 102.15
Policy Holders Fund 0 0 0 0 0
Other Liabilities 1,005.97 892.89 0 0 0
Total Liabilities 4,705.35 3,642.42 2,690.23 2,579.38 1,615.81
APPLICATION OF FUNDS :
Gross Block + 4,061.16 3,854.15 3,667.24 2,959.14 2,727.26
Less: Accumulated Depreciation + 1,798.30 1,630.70 1,452.88 1,301.15 1,168.36
Less: Impairment of Assets 0 0 0 0 0
Net Block + 2,262.86 2,223.45 2,214.36 1,657.99 1,558.90
Lease Adjustment 0 0 0 0 0
Capital Work in Progress+ 227.64 289.19 279.98 477.85 188.82
Producing Properties 0 0 0 0 0

49. Investments + 2,322.16 1,188.50 1,224.43 287.64 1,429.19
Current Assets, Loans & Advances
Inventories + 2,667.37 2,875.69 2,226.41 2,580.53 2,003.77
Sundry Debtors + 856.74 963.29 684.81 560.57 464.93
Cash and Bank+ 1,996.43 1,775.68 2,012.38 1,864.11 262.42
Loans and Advances + 483.32 420.38 615.67 764.99 688.46
Total Current Assets 6,003.86 6,035.04 5,539.27 5,770.20 3,419.58
Less : Current Liabilities and
Provisions
Current Liabilities + 5,408.23 5,645.58 5,352.18 4,332.45 3,897.68
Provisions + 1,293.67 1,059.82 1,463.83 1,534.90 1,297.36
Total Current Liabilities 6,701.90 6,705.40 6,816.01 5,867.35 5,195.04
Net Current Assets -698.04 -670.36 -
1,276.74
-97.15 -
1,775.46
Miscellaneous Expenses not written
off +
0 0 0 0 0
Deferred Tax Assets 406.81 400.92 455.5 443.7 409.61
Deferred Tax Liability 196.9 193.55 207.3 190.65 195.25
Net Deferred Tax 209.91 207.37 248.2 253.05 214.36
Other Assets 380.82 404.27 0 0 0
Total Assets 4,705.35 3,642.42 2,690.23 2,579.38 1,615.81
Contingent Liabilities+ 797.03 792.15 473.7 483.99 516.98
CASH FLOW STATEMENT
Mar-
12
Mar-
11
Mar-
10
Mar-
09
Dec-07
Cash Flow Summary
Cash and Cash Equivalents at Beginning
of the year
250.45 937.16 1864.1
1
262.42 460.899993
9

50. Net Cash from Operating Activities 2050.1
8
1923.6
1
3479.5
7
2054.0
5
1732.07995
6
Net Cash Used in Investing Activities -513.44 -327.13 -
1143.5
1
885.37 1000.96002
2
Net Cash Used in Financing Activities -844.24 -
2283.1
8
-
2187.7
9
-
1337.7
3
-
2931.52002
Net Inc/(Dec) in Cash and Cash
Equivalent
692.5 -686.7 148.27 1601.6
9
-
198.479995
7
Cash and Cash Equivalents at End of the
year
942.95 250.46 2012.3
8
1864.1
1
262.420013
4
ACCOUNTING POLICY
1. Basis for preparation of accounts
The accounts have been prepared to comply in all material aspects with applicable accounting
principles in India, the applicable Accounting Standards notified under Section 211(3c) of the
Companies Act, 1956 and
the relevant provisions thereof.
All assets and liabilities have been classified as current or non-current as per the Company''s normal
operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between acquisition of assets for processing and their
realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current / non-current classification of assets and liabilities.
2. Revenue Recognition
Sales are recognized when the substantial risks and rewards of ownership in the goods are transferred
to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and
excise duties (on goods manufactured and outsourced). It does not include inter-divisional transfers.
Income from export incentives such as duty drawback and premium on sale of import licenses is
recognized on an accrual basis.
Income from services rendered is recognized as the service is performed and is booked based on
agreements / arrangements with the concerned parties.
Interest on investments is booked on a time proportion basis taking into account the amounts invested
and the rate of interest.

51. Dividend income on investments is accounted for when the right to receive the payment is
established.
3. Expenditure
Expenses are accounted for on accrual basis and provision is made for all known losses and
liabilities.
Revenue expenditure on research and development is charged against the profit of the year in which
it is incurred. Capital expenditure on research and development is shown as an addition to fixed
assets.
4. Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Subsequent expenditures related to an item of fixed asset are added to its book value only if they
increase the future benefits from the existing asset beyond its previously assessed standard of
performance.
Items of fixed assets that have been retired from active use and are held for disposal are stated at the
lower of their book value and net realisable value and are shown separately in the financial statements
under Other Current Assets. Any expected loss is recognized immediately in the profit and loss
account.
Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which
are carried at cost are recognized in the profit and loss account.
Depreciation is provided on the straight line method over the estimated useful lives of the assets or
the rates prescribed under Schedule XIV of the Companies Act, 1956, whichever is higher.
5. Impairment of Assets
Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their
recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use.
Value in use is the present value of estimated future cash flows expected to arise from the continuing
use of an asset and from its disposal at the end of its useful life.
Assessment is done at each balance sheet date as to whether there is any indication that an
impairment loss recognized for an asset in prior accounting periods may no longer exist or may have
decreased.
6. Investments
Investments are classified into current and long-term investments. Current investments are stated at
the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution
is made to recognize a decline, other than temporary, in the value of long-term investments.
Investments that are readily realizable and are intended to be held for not more than one year from
the date on which such investments are made, are classified as current investments. All other
investments are classified as noncurrent investments.

52. Investment in land and buildings that are not intended to be occupied substantially for use by, or in
the operations of the Company, have been classified as investment property. Investment properties are
carried at cost less accumulated depreciation.
7. Inventories
Inventories are valued at the lower of cost, computed on a weighted average basis, and estimated net
realizable value, after providing for cost of obsolescence and other anticipated losses, wherever
considered necessary. Finished goods and work-in-progress include costs of conversion and other
costs incurred in bringing the inventories to their present location and condition.
8. Trade Receivables and Loans and Advances
Trade Receivables and Loans and Advances are stated after making adequate provisions for doubtful
balances.
9.. Provisions and Contingent Liabilities
A provision is recognized when there is a present obligation as a result of a past event, it is probable
that an outflow of resources will be required to settle the obligation and in respect of which reliable
estimate can be made. Provision is not discounted to its present value and is determined based on the
best estimate required to settle the obligation at the yearend date.
These are reviewed at each year end date and adjusted to reflect the best current estima
HUL RATIOS
RATIO 2012 2011 2010 2009 2008
Current Ratio 0.89584 0.90003 0.812685 0.98344 0.658239
Quick Ratio 0.49784 0.47117 0.486041 0.54363 0.272531
Cash Flow Liquidity ratio 0.6038 0.55169 0.805743 0.66779 0.383924
Average Collection Period 13.343 17.5602 14.09188 10.0014 12.27105
Days Inventory Held 48.9573 59.5269 53.12158 51.3625 60.45309
Days Payable Outstanding 73.4811 81.9793 104.8865 66.7245 87.85561
Account Receivable turnover 27.3552 20.7856 25.90145 36.4949 29.7448
Accounts Payable Turnover 3.60174 3.0947 2.438566 3.9712 3.015738
Inventory Turnover 5.40593 4.26196 4.814854 5.15894 4.382729
Fixed assets turnover 10.36 9.01 8.01 12.34 8.87
Total Assets Turnover 4.98078 5.49705 6.593328 7.93134 8.55871
Debt Ratio 0 0 0.004029 0.16831 0.063219
LONG TERM DEBT TO CAPITAL 0 0 0.004029 0.16831 0.063219

53. EMPLOYED
gross profit ratio 16.4498 40.1077 41.48424 49.4238 51.688
Operating Profit Ratio 16.4568 15.9181 16.87587 15.9098 18.05405
Net Profit Ratio 11.9479 11.5202 12.20353 12.2688 13.87545
Return on Investments 59.5097 63.3269 80.46189 97.3079 118.7559
Return on Equity 76.0684 84.339 81.10404 117.426 127.2325
Cash Return on Assets 0.4357 0.5281 1.29341 0.7963 1.07195
ANALYSIS OF FINANCIAL STATEMENT
1. The company has tremendous amount of cash flow from operating activity ,despite being in
the divestment mode,
2. Company’s debt ratio is reducing, which indicates that company is on the path of becoming a
zero debt company
3. Despite sharp decline in G.P. ratio, the N.P. ratio has not decline much , because of the
decrease in the selling and distribution expenses
4. Return on equity is 76.06% which is a great profit for the equity shareholder’s.
GODREJ
CONSUMER
PRODUCTS

54. .
INTRODUCTION
The Consumer Products business was part of the erstwhile Godrej Soaps Limited (GSL) and was
demerged into Godrej Consumer Products Limited in April 2001, pursuant to a scheme of demerger
approved by the Hon’ble High Court of Judicature, Mumbai, dated March 14, 2001.
Accounting Policy
1. Accounting Convention
The financial statements are prepared under the historical cost convention, on accrual basis, in
accordance with the generally accepted accounting principles in India, the applicable
Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and
specified in the Companies (Accounting Standard) Rules, pronouncements of the Institute of
Chartered Accountants of India and the provisions of the Companies Act, 1956.
2. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires the Management to make estimates and assumptions that affect the reported balances of
assets and liabilities as of the date of the financial statements and reported amounts of income and
expenses during the period. Management believesthat the estimates used in the preparation of
financial statements are prudent and reasonable. Actual results could differ from the estimates.
3. Fixed Assets
Fixed Assets are stated at cost of acquisition or construction, less accumulated depreciation.
Cost includes all expenses related toacquisition and installation of the concerned assets.
Direct financing cost incurred during the construction period on major projects is also capitalised.
Fixed assets acquired under finance lease are capitalised at the lower of their fair value and the
present value of the minimum lease payments.
4. Asset Impairment
Management periodically assesses using, external and internal sources, whether there is an indication
that an asset may be impaired. An impairment occurs where the carrying value of the Asset exceeds
its recoverable amount. Recoverable amount is higher of an asset''s net selling price and its value in
use. Value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its useful life. An impairment loss,
if any, is recognised in the period in which the impairment takes place.

55. Balance Sheet
Year Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
SOURCES OF
FUNDS :
Share Capital + 34.03 32.36 30.82 25.7 22.58
Reserves Total + 2,781.15 1,692.80 923.87 545.83 148.98
Equity Share
Warrants
0 0 0 0 0
Equity Application
Money
0 0 0 0 0
Total Shareholders
Funds
2,815.18 1,725.16 954.69 571.53 171.56
Minority Interest 88.23 0 0 0 0
Secured Loans + 703.87 1,067.18 36.87 229.57 92.1
Unsecured Loans + 824.25 274.86 0 48 95
Total Debt 1,528.12 1,342.04 36.87 277.57 187.1
Policy Holders
Fund
0 0 0 0 0
Other Liabilities 29.41 26.71 0 0 0
Total Liabilities 4,460.94 3,093.91 991.56 849.1 358.66
APPLICATION OF
FUNDS :
Gross Block + 4,185.74 3,455.14 726.73 550.2 389.28
Less: Accumulated
Depreciation +
493.95 377.46 153.14 109.76 125.35
Less: Impairment
of Assets
0 0 0 0 0
Net Block + 3,691.79 3,077.68 573.59 440.44 263.93
Lease Adjustment 0 0 0 0 0
Capital Work in
Progress+
37.58 8.02 0.84 2.5 71.58

56. Producing
Properties
0 0 0 0 0
Investments + 0 0 67 7.51 0.01
Current Assets,
Loans & Advances
Inventories + 783.91 439.41 264.43 167.47 191.56
Sundry Debtors + 472.53 383.99 115.26 60.19 50.95
Cash and Bank+ 639.87 226.91 305.16 378.32 42.59
Loans and
Advances +
130.55 186.76 224.68 126.77 66.77
Total Current
Assets
2,026.86 1,237.07 909.53 732.75 351.87
Less : Current
Liabilities and
Provisions
Current Liabilities
+
1,504.24 1,377.17 532.62 291.86 290.45
Provisions + 52.06 17.49 20.19 38.03 32.24
Total Current
Liabilities
1,556.30 1,394.66 552.81 329.89 322.69
Net Current Assets 470.56 -157.59 356.72 402.86 29.18
Miscellaneous
Expenses not
written off +
0 0 0 0 2.87
Deferred Tax
Assets
18.3 11.33 2.92 2.29 1.83
Deferred Tax
Liability
17.79 12.73 9.51 6.5 10.74
Net Deferred Tax 0.51 -1.4 -6.59 -4.21 -8.91
Other Assets 260.5 167.2 0 0 0
Total Assets 4,460.94 3,093.91 991.56 849.1 358.66
Contingent
Liabilities+
2,272.02 2,145.52 92.88 251.68 208.89

57. Profit & Loss Account
Year Mar 2012 Mar 2011 Mar 2010 Mar 2009 Mar 08(12)
INCOME :
Sales Turnover + 4,986.61 3,775.89 2,084.27 1,438.90 1,134.43
Excise Duty 120.45 82.29 40.58 42.26 30.86
Net Sales 4,866.16 3,693.60 2,043.69 1,396.64 1,103.57
Other Income + 252.17 93.38 44.3 39.93 4.59
Stock Adjustments + 212.26 45.22 40.45 -8.91 23.42
Total Income 5,330.59 3,832.20 2,128.44 1,427.66 1,131.58
EXPENDITURE :
Raw Materials + 2,530.78 1,752.40 986.75 760.63 541.4
Power & Fuel Cost+ 79.96 53.39 33.46 35.61 25.03
Employee Cost + 391.91 284.5 151.8 86.53 72.5
Other Manufacturing
Expenses +
111.98 86.07 32.92 25.89 23.28
Selling and
Administration
Expenses +
994.66 774.11 323.26 245.08 223.82
Miscellaneous
Expenses +
106.98 130.31 145.63 26.61 25.06
Less: Pre-operative
Expenses Capitalised+
0 0 0 0 0
Total Expenditure 4,216.27 3,080.78 1,673.82 1,180.35 911.09
Operating Profit 1,114.32 751.42 454.62 247.31 220.49
Interest + 72.59 48.58 11.1 18.86 14.84
Gross Profit 1,041.73 702.84 443.52 228.45 205.65
Depreciation+ 64.44 49.92 23.6 19.23 18.17
Minority Interest
(before tax)
0 0 0 0 0
Profit Before Tax 977.29 652.92 419.92 209.22 187.48
Tax+ 227.94 137.82 79.55 31.78 26.6

58. Fringe Benefit Tax+ 0 0 0 0.75 0.73
Deferred Tax+ -1.89 0.39 0.78 3.43 0.92
Net Profit 751.24 514.71 339.59 173.26 159.23
Minority Interest
(after tax)
24.52 0 0 0 0
Profit/Loss of
Associate Company
0 0 0 0 0
Net Profit after
Minority Interest & P/L
Asso.Co.
726.72 514.71 339.59 173.26 159.23
Extraordinary Items + 157.72 33.81 1.26 0.03 0.1
Adjusted Net Profit 569 480.9 338.33 173.23 159.13
Adjst. below Net
Profit +
0 56.64 0 4.67 0
P & L Balance brought
forward
606.58 296.96 137.62 96.33 60.47
Statutory
Appropriations
0 0 0 0 0
Appropriations + 242.48 261.73 180.25 136.64 123.37
P & L Balance carried
down
1,090.82 606.58 296.96 137.62 96.33
Dividend 156.63 163.14 125.86 102.98 92.76
Preference Dividend 0 0 0 0 0
Equity Dividend (%) 475 450 425 400 400
EPS before Minority
Interest (Unit Curr.)
21.33 14.87 10.27 6.06 6.35
EPS before Minority
Interest (Adj) (Unit
Curr.)
4.82
EPS after Minority
Interest (Unit Curr.)
20.61 14.87 10.27 6.06 6.35
EPS after Minority
Interest (Adj) (Unit
Curr.)
4.82

59. Book Value (Unit
Curr.)
82.73 53.31 30.98 22.24 7.6
Cash Flow
Cash Flow Summary Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
Cash and Cash
Equivalents at Beginning
of the year
70.15 242.8 344.57 19.85 21.73
Net Cash from Operating
Activities
687.64 257.92 267.98 136.38 156.97
Net Cash Used in
Investing Activities
-1004.73 -997.28 -227.85 5.29 -68.19
Net Cash Used in
Financing Activities
438.91 566.71 -199 183.05 -90.66
Net Inc/(Dec) in Cash and
Cash Equivalent
121.82 -172.65 -158.87 324.72 -1.88
Cash and Cash
Equivalents at End of the
year
191.97 70.15 185.7 344.57 19.85
RATIOS
RATIO 2012 2011 2010 2009 2008
Current Ratio 1.30235815
7
0.88700471
8
1.64528499
8
2.221195 1.090427345
Quick Ratio 0.79865707
1
0.57193868 1.16694705
2
1.713541 0.496792587
Cash Flow Liquidity ratio 0.41114823
6
0.16269915
2
0.55201606
3
1.146807 0.131984257
Average Collection Period 35.44344 37.9457304
5
20.5852648
9
15.73015 16.85144576
Days Inventory Held 67.8626250
2
52.0597543
5
57.6626817
7
51.7868 76.74258306

60. Days Payable
Outstanding
66.6783555
1
39.4680730
2
29.8813193
8
35.42233 59.75232963
Account Receivable
turnover
10.2980974
8
9.61900049
5
17.7311296
2
23.20385 21.65986261
Accounts Payable
Turnover
4.04376614
8
6.53306517 8.79318397
4
7.932431 4.439892725
Inventory Turnover 3.97319845
4
4.95291413
5
4.55670687
9
5.425808 3.456932554
Fixed assets turnover 1.32 1.20 3.56 3.17 4.18
Total Assets Turnover 1.09083735
7
1.19382916
8
2.06108556
2
1.644847 3.076925222
Debt Ratio 0.34255560
5
0.08883904
2
0 0.05653 0.264874812
Long term debt to Capital
Employed
0.34255560
5
0.43376827
4
0.03718383
2
0.326899 0.521663971
gross profit ratio 21.4076397 19.0285899
9
21.7019215
2
16.35711 18.63497558
Operating Profit Ratio 22.8993703
5
20.3438379
9
22.2450567
4
17.7075 19.97970224
Net Profit Ratio 15.4380456 13.9351851
9
16.6165122
9
12.40549 14.42862709
Return on Investments 16.8403968
7
16.6362305
3
34.2480535
7
20.40513 44.39580661
Return on Equity 26.6853274 29.8354935
2
35.5707088
2
30.31512 92.81301003
Cash Return on Assets 0 0.24497889
3
0.28551892 0.208724 0.229929893
Price to Earning 22.8785747
8
24.5729657 26.4508276
5
21.78218 19.54330709
ANALYSIS ON FINANCIAL STATEMENT
1. Company has debt ratio of .34 which implies that business is financed about
equally from both the sources that is shareholders & Debt which implies low cost of
borrowing.

61. 2. Net Profit ratio of company is continuously increasing because of decrease in
selling and Administration expenses and increase in G.P margin.
3. Average collection period of the company doubled in the last 5 years leads to
increase in the current ratio.
4. Days inventory held has increased to 67 days from 52 days which is the reason for
increase in current ratio.

62. BRITANNIA
INDUSTRIES LTD
For the year ended 31st March 2008, the Company achieved a sales growth of 17.5% on an expanded
base arising from 27.5% growth in the previous year. Net Profit of the Company increased 77.5 % to
Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07. Operating Margin increased by 307 basis
points to 7.5%.
The Company witnessed all round growth in key categories with Biscuits recording sales of Rs.
23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during 2007-08. This
business has doubled in two years.
In an intensely competitive biscuit environment, all ³Power Brands² of the Company recorded double
digit growth, with Tiger and Good Day growing in excess of 20%. The Company¹s innovation forays
have successfully addressed new benefit clusters and NutriChoice Digestive has claimed its position
in the health and vitality space. The Company continues to maintain its leadership edge in 6 out of 7
key product segments, the only exception being Glucose.

63. The Company introduced several new and renovated offerings in Tiger, Good Day, Treat and
MarieGold. The health and nutrition platform was buttressed by Tiger Banana with ³iron-zor²,
fortified Milk Bikis, renovated MarieGold and Nutrichoice Digestive. To tap the more indulgent
consumers, your Company launched Good Day Classic Cookies, while continuing to roll out
individual consumption packs at the highly affordable Rs. 5 price point.
The Bread, Cake and Rusk portfolio was strengthened with the successful relaunch of Breads,
fortified with vitamins and minerals, positioning them firmly as the healthy start to your day. This
innovation combined with relevant consumer activation in key markets has seen a 30%+ growth in the
Bread, Cake and Rusk business.
As a Corporate, Britannia worked for the benefit of all stakeholders - shareholders, consumers, dealers
, suppliers, bankers and employees. It has established an excellent track record in terms of its financial
performance and dividends distributed to its shareholders. This has been adequately demonstrated
with the Company's topline growing from Rs 10,301 Mn in 1999 to Rs 26,176 Mn in 2008, a growth
of 154% over the last 10 years. The net profit grew even more significantly at 382% from Rs 396 Mn
in 1998-99 to Rs 1,910 Mn in 2007-08, giving a CAGR of 19.1%. As at 31st March 2008, the issued
and paid up capital of Britannia amounts to 23, 890,163 equity shares having a nominal value of Rs
10 each. The shareholder base is about 25,300 in number.
Balanced Sheet