DABUR NEPAL PRIVATE LIMITED - Dabur India Limited

DABUR NEPAL PRIVATE LIMITED
Annual Report for the financial year ended 31st March, 2010

Contents
Director’s Report 1
Auditor’s Report 7
Balance Sheet 9
Profit & Loss Account 10
Statement of Cash Flow 11
Schedules 12
Accounting Policies & Notes to Accounts 17

DIRECTOr’s RepoRT
To,
The Members,
This report presented by your Directors in respect of Financial year ended on 31st March 2010 has been made out for the limited
purpose in terms of section 212(2)(b) of Indian Companies Act,1956. Pursuant to section 212(2)(a) and section 212(2)(b) of Indian
Companies Act, the Balance Sheet of Dabur Nepal Private Limited as on 31st March 2010 and the Profit & loss Account for the year
ended on that date dealt with by this report have also been made out in accordance with the requirement of Indian Companies Act
1956,which have been certified by an Indian firm of Chartered Accountants thereby making out the audit report thereof in accordance
with the requirements of Indian Companies Act,1956.
FINANCIAL RESULTS
The Financial results of drawn in accordance with Indian Companies Act are as follows:
(Rs in lacs)
Particulars 2009-10 2008-09
Sales (inclusive Other Income) 27,778.00 27,333.00
Profit before Tax 1,200.00 17.00
Less: Provision for Tax 257.00 3.00
Net profit after tax 944.00 14.00
Balance brought forward 5,470.00 5,468.00
Additional Provision Related to Earlier Years
Income Tax Adjustment for Previous Years - 12.00
Other Adjustment for Previous Years - -
Profit available for appropriation 6,414.00 5,470.00
Appropriation/allocation:
Interim Dividend - -
Transferred to general reserve - -
Balance carried over to balance sheet 6,414.00 5,470.00
OPERATIONS AND ACTIVITY
During the year, the Domestic Sales of your Company has been increased to INR 130 crores with aggregate Sales of INR 276.52 crores
during the year. This sales is achieved despite of the unstable political situation in Nepal.
In retrospect to FY 2009-10, the global economy has survived from the recession that has crippled the world economy during the FY
2008-09. Further, during the FY 2009-10, the USD has also been cooled down, and was in the range of 1 USD = INR 44 – 45. During
the FY 2009-10, the financial market in Nepal was very volatile with interest rate surging to 12% per annum. However, your Company
has managed to come out from this financial crisis in the Country by successfully taking Working Capital Loan from foreign Financial
Market at comparatively low rate of interest.
So, in nutshell, your Company has effectively managed the adverse business situations, and was able to deliver a Profit After Tax of
INR 944.00 Lacs during the FY 2009-10.
FUTURE OUTLOOK
The Global economy has recovered from impact of recession during the FY 2009-10. Further, your Company has aggressive sales and
marketing plan for FY 2010-11. Hence, your Company is assured that the FY 2010-11 will be another benchmark year with robust sales
growth, good profit, and better customer trust.
EXPANSION/MODERNIZATION
During the year, your Company has installed Gasifire Plant. This will help to have better operational efficiency with reduced cost of
Boiler operation.
MEDICINAL PLANTS PROJECT
After achieving self sufficiency in Akarkara, Chiraita, and Satavari, your Company has successfully explored the export market for
Akarkara, and has exported the same to India.
As a measure of Public Private Partnership (PPP), Trial cum Demonstration plots have been started during the year to ensure commercial
cultivation of Medicinal Plants at Kankali CFUG (Chitwan) and Balkumari Mahila CFUG (Kavre).
1

DIRECTORS
During the year, there was no change in the Directors of your Company.
INTERNAL CONTROL SYSTEM
The Company has a proper and adequate internal control system to ensure safeguard and protection of all assets and that the
transactions are authorized, recorded and reported correctly. The Company’s internal control system comprises audit and compliance
by internal audit checks from Price Waterhouse Coopers Private Limited, India, the Internal Auditors. The Internal Auditors independently
evaluate the adequacy of internal controls and concurrently audit the majority of the transactions in value terms. Independence of the
Audit and compliance is ensured by the Direct Reporting of Internal Auditors to the Management Committee of the Board.
Further, in order to further strengthen the Internal Control system of the Company, your Company has successfully implemented the
SAP system integrating the all areas of operation.
DIVIDEND
In view of low profit for the year, your Directors do not propose any dividend for the year.
FIXED DEPOSITS
No fixed deposit has been accepted during the year.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors’ Responsibility Statement,
the Directors confirm:
i) That in the preparation of the annual accounts, the applicable accounting standards have been followed and no material
departures have been made from the same;
ii)
That they had selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and
of the profit of the Company for that period;
iii) That they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
iv) That they had prepared the annual accounts on a going concern basis.
AUDITORS REPORT
The observations of Auditors in their report read with the relevant notes to accounts in schedule – 20 are self-explanatory and do not
require further explanation.
PARTICULARS OF EMPLOYEES
Particulars of Employees as required under Section 217(2A) of the Indian Companies Act, 1956 read with Companies (Particular of
Employees) Rules, 1975 as amended are given in Annexure 1 to the Directors Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
A. Conservation of Energy
a. Energy Conservation Measures Taken
Your Company has taken following energy conservation measures during the year –
• RiceHusk Gasifire system installed for generation of Producer Gas to be used as fuel in 5 ton Thermax Boiler. The system is
capable of replacing 2200 Liter of Furnace oil per day in this Steam Boiler.
• Dedicated Feeder and dedicated transmission line obtained from NEA for smooth and un-interrupted Power Supply.
• Two number of., 2-strokes Diesel Generator Engine have been replaced by 2 number of., 4-strokes DG Engine to achieve better
fuel efficiency and reduced pollution.
• Tubular Heat Exchanger (Shell & Tube type) water cooling system of Diesel Generators Set was converted into energy efficient
PHE type.
• Synchronization system was updated for obtaining higher efficiency of DG Set and load balancing.
b. Additional Investments and Proposals, if any, being Implemented for Reduction of Consumption of Energy
• Second phase of Rice Husk Gasifire system is planned to be installed. The system is designed for replacing of another 2200 Liter
of Furnace oil per day.
• Old Coil type Water Heating system of Honey Plant planned to be replaced with PHE type water heating system for reducing
steam consumption in Honey plant.
• Installation of another 4-strokes DG Engine in place of one existing 2-strokes DG Engine.
c. Impact of the Measures taken at (a) & (b) above for Reduction of Energy Consumption and Consequent Impact on the Cost of
2

Production of Goods
• Annual Saving of approximately INR 110.00 lacs on Overheads from measures taken in (a).
• Annual Saving of approximately INR 70.00 lacs on Overheads from measures taken in (b).
d. Total energy consumption and energy consumption per unit as per Form A attached herewith as Annexure 2.
B. Technology Absorption
Efforts made in technology absorption as per form B is attached herewith as Annexure 3.
C. Foreign Exchange Earnings and Outgo
Total Foreign Exchange Used during 2009-10: INR 1,43,823.67 lacs (Previous Year INR 1,21,68.32 lacs)
Total Foreign Exchange Earned during 2009-10: INR 41.13 lacs (Previous Year INR 194.18 lacs)
ACKNOWLEDGEMENT
Your Directors wish to place on record their appreciation for the continued support and co-operation extended by Dabur India Limited,
Shareholders, Dealers, Customers and all the employees of the Company.
They also wish to place on record their sincere appreciation for the co-operation, assistance and guidance received from various
officers of the Government of Nepal and Government of India.
On behalf of the Board of Directors
Pradip Burman
(Chairman)
Date : 9th April, 2010
3

Annexure ‘1’
Statement of particulars of employees pursuant to the provisions of Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975and forming part of the
Director’s Report for the Year Ended 31st March 2010
Name
Designation/Nature
of Duties
Qualification
1. Mr. Udayan Ganguly Chief Executive Director
B. A (Economics),
PGDBM (Marketing)
Experience
(in Years)
Remuneration
Date of
Appointment
Age
(in Years)
Particulars of Last Employment
21 57,00,998 1-Aug-06 44 General Manager -
Sales, (North India &
Nepal) Glaxo Smith-
Kline Consumer Healthcare
Ltd.
2. Mr. Indranil Gupta Head of Operations B.E. Mechanical 19 45,65,393 1-Aug-07 40 Since 2005 till July
2007 with DIL Technical
Head-Ice Cream Business,
Unilever, India
3. Mr. Atul Nagar DGM Purchase B.Sc. & Diploma
in Import & Export
Management and
Material Management
4. Mr. Bibek Agarwala Financial Controller
and Company Secretary
32 27,92,430 1-Sep-06 54 Since 1981 till Aug 2006
with DIL as Sr. Manager
Purchase
CA, CS, B. Com. 10 25,88,536 17-Sep-
2007
34 Senior Manager Finance-Seagram
India
Pvt.Ltd
Notes:-
1 Gross Remuneration shown above is subject to Tax and comprises salary including arrears, allowances, rent, medical
reimbursement, leave travel benefits, provident fund, Superannuation fund & gratuity in terms of actual expenditure incurred by
the Company.
2. All the employees have adequate experience to discharge the responsibilities assigned to them.
3. None of the employees mentioned above is a relative of any director.
4. Nature of employment is on contractual basis except in the case of directors whose terms have been approved by
shareholders.
4

FORM - A
(See Rule 2)
Form of Disclosure of particulars with respect to Conservation of Energy
Annexure ‘2’
A. Power and Fuel consumption 2009-10 2008-09
1. Electricity
a) Purchased
Units 77,97,536 76,45,711
Total Amount (INR) 2,83,02,108 2,78,89,836
Rate per Unit (INR) 3.6 3.6
b) Own Generation
i) Through Diesel Generator
Units 2265844 20,66,675
Units Per Liter of Diesel 3.59 3.10
Cost Per Unit (INR) 8.55 10.25
II) Through Steam Turbine/Generator
Units Nil Nil
Units Per Liter of Fuel Oil Nil Nil
Cost Per Unit (INR) Nil Nil
2. Rice Husk (Specify Quality and Where Used) Boiler
Quantity (MT) 1100.70 Nil
Total Cost (INR) 749,168 Nil
Average Rate Per Ton (INR) 681.2 Nil
3. Furnace Oil
Highlighted figures are different from last years figures
Quantity (MT) 1158.0 982.50
Total Cost (INR) 2,48,61,601 2,68,70,948
Average Rate Per Ton (INR) 21469.4 27,349.36
4. Others – Internal Generation
a) HSD
Quantity (KL) 592.27 819.09
Total Cost (INR) 2,0501132 2,43,16,734
Average Rate per KL (INR) 34614.4 2,9687.5
b) LDO
Quantity (KL) Nil Nil
Total Cost (INR) Nil Nil
Average Rate per KL (INR) Nil Nil
B. Consumption per Unit of Production
The Company is engaged in production of variety of products; hence the figures of consumption per unit of
production are not ascertainable.
5

Annexure 3
Form B
(See Rule 2)
Form of Disclosure of particulars with respect to Technology Absorption, Research and Development (R&D)
Research and Development
1. Specific Areas in Which R&D Carried by the Company ------NIL-------
2. Benefits Derived as a Result of the Above R&D -------NA-------
3. Future Plan of Action -------NIL-------
4. Expenditure on R&D
Capital
-------NIL-------
b. Recurring -------NIL-------
c. Total -------NIL-------
d. Total R&D expenditure as a percentage of Total Turnover -------NIL-------
Technology Absorption, Adoption and Innovation
S .
No.
Particulars
1. Efforts in brief, made towards
technology absorption,
adaptation and innovation
2. Benefits derived as a result of
the above efforts e.g. product
improvement, cost reduction,
product development, import
substitution, etc.
3. In case of imported
technology (imported during
the last 5 years reckoned from
the beginning of the financial
year) following information
may be furnished
(a) Technology imported
(b) Year of import
(c) Has technology been
fully absorbed
If not fully absorbed, areas
where this has not taken
place, reasons therefore and
future plans of action.
Remarks
• Change-over to 1 liter wrap-around tray from card board box.
• Installation of automatic wrap around tray packing machine (TCBP-70) in TBA-8 Line.
• Installation of foam cleaning machine (Tornado) for ambient air sterilization in manufacturing
and packing of fruit juice.
• Installation of 2 Nos. of Domino Coding Machines for date and numbering in packets from
TBA-8 and TBA-19 Line.
• Commencement of production of Hajmola Kaccha Aam, Gulabari Cream & Lotion, Total
Health Protect Shampoo and 3 variants of Vatika Anti Dandruff Shampoo.
• Cost Reduction (Wrap around tray)
• Process Improvement (Foam Cleaning machine, Online Domino Coding, Automatic wrapping
machine)
• Product Development (Kachha Aam, Gulabari Cream & Lotion, Total Health protect Shampoo)
• Quality Improvement (enhancement of QL)
• NA
6

Auditors’ Report
We have verified the attached Balance Sheet of Dabur Nepal Private Limited, (incorporated at Nepal) as at 31st March, 2010 and
its Profit & Loss Account and the Cash Flow Statement for the year ended on that date, all being made out in accordance with the
requirement of Indian Companies Act, 1956, from the audited accounts of the body corporate under the statute of the country of
its incorporation and additional certified returns which have been relied upon by us (refer note no. B(1), Schedule “N” of Notes to
Accounts). These financial statements are the responsibility of the body corporate’s management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statement. An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
i. As required by the Companies (Auditors’ Report) Order 2003 issued by the Central Government in terms of section 227 (4A) of
the Indian Companies Act, 1956, we enclose herewith in the annexure a statement of the matter specified therein.
ii. We hereby report that
a) Proper returns necessary for making out the accounts in accordance with the requirement of Indian Companies Act, 1956, were
received by us.
b) We have obtained the information and explanations which to the best of our knowledge and belief were necessary for the purpose
of audit.
c) Proper books of accounts have been kept by the body corporate.
d) The Balance Sheet and Profit & Loss Account dealt with by this report have been made out from the figures which are in agreement
with the books of accounts.
e) Balance Sheet and Profit & Loss Account have been prepared in due compliances of accounting standards referred to in subsection
(3C) of section 211 of Companies Act 1956.
f) In our opinion and according to the information and explanations given to us, the accounts as made out herein read with other
notes appearing in Schedule “N” give the information required by the Companies Act 1956, in the manner so required to the
extent possible and practicable and give a true and fair view in conformity with the accounting principles generally accepted in
India ;
(i) In the case of Balance Sheet, of the State of Affairs of the body corporate as at 31st March 2010 and
(ii) In case of Profit & Loss Account of the profit of the body corporate for the year ended on that date; and
(iii) In the case of Cash Flow statement, of the cash flows of the body corporate for the year ended on that date.
For G Basu & Co
Chartered Accountants
R. No. 301174E
(Manoj Kumar Das)
Partner
(M. No. 013783)
7

ANNEXURE TO THE AUDITORS’ REPORT as REFERRED TO IN PARA I OF THE SAID
REPORT OF EVEN DATE.
1 a. The body corporate has maintained proper records showing full particulars including quantitative details and situation of fixed
assets.
b. The physical verification of fixed assets is yet to be completed which is under progress. The discrepancies between book
records and physical inventories, if any, cannot be commented upon.
c. Fixed assets disposed of during the year were not material enough to affect the going concern identity of the body corporate.
2 a . The inventories have been physically verified at reasonable intervals by the management.
b. The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to
the size of the body corporate and the nature of its business.
c. On the basis of our examination of the records of inventory, we are of the opinion that the body corporate is maintaining
proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were
not material and have been properly dealt with in the books of accounts.
3 a. The body corporate has not granted any loan or advance of the nature of loan (secured or unsecured) to any director, body
corporate, company, firm or parties in which directors are interested.
4. The body corporate has not taken any fresh unsecured loan during the year. Previous year outstanding was repaid during the
year.
5. In our opinion and according to the information and explanations given to us there is an adequate internal control system
commensurate with the size of the body corporate and the nature of its business for purchase of inventory and fixed assets
and on the sale of goods. During the course of our audit no major weakness has been noticed in the internal controls. We
have not observed any failure on the part of the body corporate to correct major weakness in internal control system.
6. According to information and explanation given to us, the transactions of purchases and sales with the directors or companies,
firms or parties were the directors are interested, have been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
7. The body corporate has not accepted deposit from any sources within the meaning of “Acceptance of Deposit Rule” under
Indian Companies Act, 1956.
8. The body corporate has reasonably an adequate internal audit system commensurate with its size and nature of business.
9. section 209 (i) (d) of the Companies Act, 1956, is not applicable to the body corporate.
10. a) According to information and explanations given to us, the body corporate is depositing with appropriate authorities undisputed
statutory dues to the extent applicable to it.
b) We have been informed that there is no undisputed statutory dues as at the year end which is outstanding for a period of six
months from the date the same became payable.
c) According to information and explanations given to us, there has been no undisputed statutory dues which has not been deposited.
11. Based on the audit procedures and on the information and explanations available to us, the body corporate has not availed
any facility from any financial institution or debenture holder. As such the question of default does not arise. Regarding loans
from the banks, the same is default free.
12. The body corporate has not granted any loan or advance secured by pledge of share, debenture or other security.
13. Based on our examination of the records and evaluations of the related internal controls and information given to us we are
of the opinion that the body corporate is not dealing in securities, debentures and other investments. It has one long term
investment which is strategically held in its own name.
14. The body corporate has not given guarantees for loans taken by others from banks or financial institutions.
15. No term loan has been availed by the body corporate from any quarter.
16. According to the information and explanations given to us and on the basis of analysis of financial statement of the body
corporate, we are of the opinion that no fund has been raised on short term basis which has been used by the body corporate
for long term application.
17. The Body corporate has not issued any secured debenture during the year.
18. The Body corporate has not raised any fund through public issue or preferential allotment during the year.
19. Based upon the audit procedures performed and information and explanations given to us, we report that no fraud on or by
the body corporate has been noticed or reported during the course of our audit.
20. other clauses of the order are not applicable to the Body corporate.
8
For G Basu & Co
Chartered Accountants
R. No. 301174E
(Manoj Kumar Das)
Partner
(M. No. 013783)

Balance Sheet As at 31st March 2010
(Rs. in lacs)
As At
As At
Schedule 31st March 2010 31st March 2009
Sources Of Funds :
Shareholders’ Funds:
Shareholders’ Funds:
(A) Share Capital A 499 499
(B) Reserves And Surplus B 7,830 6,831
8,329 7,330
Loan Funds:
A) Secured Loans c 2,863 3,830
(B) Unsecured Loans D 1,948 57
4,811 3,887
Deferred Tax Liability 147 130
Total 13,287 11,347
Application Of Funds :
Fixed Assets :
(A) Gross Block f 14,866 14,434
(B) Less : Depreciation 7,794 6,880
(C) Net Block 7,072 7,554
Current Assets, Loans And Advances:
G
(A) Inventories 6,830 5,517
(B) Sundry Debtors 1,316 4,116
(C) Cash & Bank Balances 313 247
(D) Loans & Advances 2,480 1,149
10,939 11,029
Less: Current Liabilities And Provisions
E
(A) Liabilities 3,915 6,816
(B) Provisions 809 420
4,724 7,236
Net Current Assets 6,215 3,793
Notes To Accounts
N
Total 13,287 11,347
As per our report of even date attached
for DABUR NEPAL PRIVATE LIMITED
for G. BASU & CO
CHARTERED ACCOUNTANTS Pradip Burman chairman
R. No. 301174E R. S. Rana Managing Director
(Manoj Kumar Das)
PARTNER Date :9th April, 2010
(M. No. 013783)
Place Kathmandu
9

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010
(Rs. in lacs)
for the Year Ended For the Year Ended
schedule 31st March 2010 31st March 2009
Income :
H
Sales Less Returns 27,652 27,199
Other Income 126 134
Total Income 27,778 27,333
Expenditure :
Cost Of Materials I 19,843 20,172
Excise Duty 172 117
Manufacturing Expenses J 1,570 1,456
Payments To And Provisions For Employees K 1,819 1,636
Selling And Administrative Expenses L 1,910 2,557
Financial Expenses M 319 404
Depreciation 945 974
Total Expenditure 26,578 27,316
Balance Being Net Operating Profit Before Tax 1,200 17
Provision For Taxation Current 239 3
Provision For Taxation Deferred 17
Net Profit After Taxation 944 14
Balance Brought Forward 5,470 5,468
Provision For Taxation For Earlier Year 0 12
Profit Available For Appropriation 6,414 5,470
Balance Carried Over To Balance Sheet 6,414 5,470
As per our report of even date attached
for DABUR NEPAL PRIVATE LIMITED
for G. BASU & CO
CHARTERED ACCOUNTANTS Pradip Burman chairman
R. No. 301174E R. S. Rana Managing Director
(Manoj Kumar Das)
PARTNER Date :9th April, 2010
(M. No. 013783)
Place Kathmandu
10

STATEMENT OF CASH FLOW
For The Year Ended
(Rs. in lacs)
For The Year Ended
Particulars 31st March 2010 31st March 2009
A. Cash flow from operating activities
Net Profit Before Tax And Extraordinary Items 1,200 17
Add:
Depreciation 945 974
Loss On Sale Of Fixed Assets 6 11
Loss On Sale Of Investment 0 3
Miscellenous Exp. Written Off 6 0
Interest 319 404
1,276 1,392
Operating Profit Before Working Capital Changes 2,476 1,409
Working Capital Changes
Increase/(Decrease) In Inventories 1,313 (657)
Increase/(Decrease) In Debtors (2,802) 762
Decrease/(Increase) In Trade Payables 2,694 1,140
IncreasE/(Decrease) In Working Capital 1,205 1,245
Cash Generated From Operating Activities 1,271 164
Interest Paid 330 404
Tax Paid 240 3
570 407
Cash Used(-)/(+)Generated For Operating Activities (A) 701 (243)
B. Cash Flow From Investing Activities
Purchase Of Fixed Assets (470) (814)
Sale Of Fixed Assets (0) 3
Sale Of Investment Including Investment In Subsidiaries 0 3
Cash Used(-)/(+)Generated For Investing Activities (B) (470) (808)
C. Cash Flow From Financing Activities
Repayment(-)/Proceeds (+) Of Long Term Secured Liabilities (230) (284)
Repayment(-)/Proceeds(+) From Short Term Loans (737) (577)
Repayment (-)/Proceeds(+) From Deposits 1,890 9
Payment Of Other Advances (1,088) 1,803
Cash Used(-)/+(Generated) In Financing Activities (C) (165) 951
Net Increase(+)/Decrease (-) In Cash And Cash Equivalents (A+B+C) 66 (100)
Cash And Cash Equivalents Opening Balance 247 347
Cash And Cash Equivalents Closing Balance 313 247
As per our report of even date attached
for DABUR NEPAL PRIVATE LIMITED
for G. BASU & CO
CHARTERED ACCOUNTANTS Pradip Burman chairman
R. No. 301174E R. S. Rana Managing Director
(Manoj Kumar Das)
PARTNER Date :9th April, 2010
(M. No. 013783)
Place Kathmandu
11

SCHEDULES - Annexed to and forming part of the Balance Sheet as at 31st March 2010
SCHEDULE-A : SHARE CAPITAL
Authorised :
1400000 Equity Shares Of Nrs 100 Each 875 875
(Previous Year 1400000 Equity Shares Of Nrs 100 )
875 875
Issued, Subscribed: And Paid Up
798520 Equity Shares Of Nrs 100 Each Fully Paid Up In Cash) 499 499
778520 Held By Dabur International Ltd, Holding
Company Incorporated In Isle Of Man & Its Nominees
(Previous Year- 798520 Equity Shares Of Nrs 100)
SCHEDULE-B : RESERVES and SURPLUS
Share Premium Account
12
499 499
As Per Last Account 375 375
Employees Housing Reserve Fund
As Per Last Account 531 530
Add : Transferred From Profit & Loss Account 55 1
586 531
General Reserve 455 455
Profit And Loss Account 6,414 5,470
Total 7,830 6,831
SCHEDULE-C : SECURED LOANS
A. Banks and Financial Instituitions
I Term Loans:
Deferred Payment 0 230
(Secured By Hypothecation Over Machinies Imported Under The Said Facility)
II Short Term Loans - From Banks : 2,863 3,600
Secured By :
Execution Of Registered Mortgage By Deposit Of Title Deeds Of Company’s Entire
Land Situated At Rampur Tokani,Bara District And The Entire Immovable Properties,
Present & Future, Built Thereon And Hypothecation & Assignment Of Entire Current
Assets, Present And Future, Ranking Pari-Passu Amongst Nabil Bank Ltd, Std. Chartered
Bank Nepal Ltd And Nepal Sbi Bank Ltd. Subject To The Priorities That Banks
Extending Term Loans ( Except That Which Is Covered By Guarantees Of Indian
Banks) Shall Have First Charge On The Fixed Assets And Second Charge On Current
Assets While The Particpating Banks Extending Working Capital, Overdraft And
Cash Credit Shall Have Pari-Passu First Charge On The Current Assets And Second
Charge On Fixed Assets; And Are Further Secured By A Corporate Guarantee By The
Company’s Parent Company Dabur India Ltd; New Delhi And By Personal Guarantee
By A Director Of The Company.
SCHEDULE-D : UNSECURED LOANS
2,863 3,830
From Directors 0 48
Security Deposit From Dealers And Others 10 9
Short Term Loan - From Banks 1,938 0
Total 1,948 57
As At
(Rs. in lacs)
Particulars 31st March 2010 31st March 2009
As At

SCHEDULES - Annexed to and forming part of the Balance Sheet as at 31st March 2010
SCHEDULE-F : FIXED ASSETS
Name of Asset As On
01.04.2009
GROSS BLOCK DEPRECIATION NET BLOCK
Additions
2009-10
Adjustment
2009-10
As On
31.03.2010
As On
01.04.2009
For The Year
2009-10
Adjustment
2009-10
As On
31.03.2010
As On
31.03.2010
As On
31.03.2009
Freehold Land 326 0 0 326 0 0 0 0 326 326
Building, Roads &
Bridges
2,645 0 0 2,645 1,243 92 0 1,335 1,310 1,402
Plant & Machinery 9,887 442 30 10,299 4,581 744 25 5,300 4,999 5,306
Furniture & Fixtures 934 16 2 948 640 50 1 689 259 294
Vehicles 392 12 6 398 242 38 5 275 123 150
Computer 229 0 0 229 174 21 0 195 34 55
Cwip 21 0 0 21 0 0 0 0 21 21
Total 14,434 470 38 14,866 6,880 945 31 7,794 7,072 7,554
Previous Year 13,675 814 55 14,434 6,245 974 339 6,880 7,554
(Rs. in lacs)
Particulars 31st March 2010 31st March 2009
As At
As At
SCHEDULE-G : CURRENT ASSETS, LOANS AND ADVANCES
A. Current Assets :
Inventories
- Raw Materials 4,103 3,017
- Packing Materials, Stores And Spares 1,323 936
- Stock In Process 267 203
- Finished Goods 1,137 1,361
6,830 5,517
Sundry Debtors (Unsecured & Considered Good) 1,316 4,116
Cash And Bank Balances :
Cash In Hand 3 2
- Balance With Banks
In Current Accounts 309 245
In Fixed Deposit Accounts 1 0
313 247
8,459 9,880
B. Loans And Advances (Unsecured, Considered Good)
Security Deposit With Various Authorities 1,019 697
Advance Payment Of Tax 483 243
Advances To Suppliers 646 135
Advances To Employees 140 18
Other Advances Recoverable In Cash Or In Kind Or For Value To 192 56
Be Received
2,480 1,149
Total (A+B) 10,939 11,029
13

SCHEDULES - Annexed to and forming part of the Balance Sheet as at 31st March 2010
(Rs. in lacs)
As At
As At
Particulars 31st March 2010 31st March 2009
SCHEDULE-E : CURRENT LIABILITIES AND PROVISIONS
A. Current Liabilities :
Acceptance 0 0
Creditors For Goods 1,152 621
Creditors For Expenses And Other Liabilities 2,734 6,157
3,886 6,778
Advances From Customers 6 3
Interest Accrued But Not Due On Loans 23 35
3,915 6,816
B. Provisions :
For Leave Salary 56 25
For Gratuity 151 32
For Taxation :
Adjusted During Year 602 363
809 420
4,724 7,236
14

SCHEDULES - Annexed to and forming part of the Profit and Loss Account for the Year Ended 31st March 2010
(Rs. in lacs)
For The Year Ended For The Year Ended
Particulars 31st March 2010 31st March 2009
SCHEDULE-H : SALES AND OTHER INCOME
A. Sales :
Domestic Sales Less Returns 13,000 12,324
Export Sales 14,652 14,875
27,652 27,199
B. Other Income :
Rent Realised 0 0
Sale Of Scrap 125 134
Miscellaneous Receipts 1 0
126 134
SCHEDULE-I : COST OF MATERIALS
Raw Materials Consumed :
I) Opening Stock 3,017 2,213
II) Add : Purchases 13,555 13,536
16,572 15,749
III) Less : Closing Stock 4,216 3,017
12,356 12,732
Packing Materials Consumed :
I) Opening Stock 936 1,570
II) Add : Purchases 7,403 5,978
8,339 7,548
III) Less : Closing Stock 1,323 936
7,016 6,612
Purchase Of Finished Products 311 0
Adjustment Of Stocks In Process And Finished Goods
Opening Stock :
Stock In Process 203 103
Finished Products 1,361 2,289
1,564 2,392
Closing Stock :
Stock-In-Process 267 203
Finished Products 1,137 1,361
1,404 1,564
Increase(-)/Decrease In Stock In Process And Finished Goods 160 828
SCHEDULE-J : MANUFACTURING AND OPERATING EXPENSES
19,843 20,172
Power And Fuel 753 857
Stores & Spares Consumed 168 277
Repairs & Maintenance
--- Building 94 73
--- Plant & Machinery 168 125
--- Others 209 41
Processing Charges 178 83
1,570 1,456
15

SCHEDULES - Annexed to and forming part of the Profit and Loss Account for the Year Ended 31st March 2010
(Rs. in lacs)
For The Year Ended For The Year Ended
Particulars 31st March 2010 31st March 2009
SCHEDULE-K : PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
Salaries, Wages And Bonus 1,327 1,293
Contribution To Provident And Other Funds 135 130
Workmen And Staff Welfare 341 150
Directors’ Remuneration 16 63
1,819 1,636
SCHEDULE-L : SELLING AND ADMINSTRATIVE EXPENSES
Rent 51 37
Rates And Taxes 1 1
Insurance 153 129
Sales Tax 0 1
Freight And Forwarding Charges 52 85
Commission, Discount And Rebate 220 209
Advertising And Publicity 976 847
Travel & Conveyance 270 230
Legal & Professional 39 40
Telephone , Fax Expenses 54 58
Security Expenses 46 55
General Expenses 30 832
Auditors’ Remuneration: 3 4
Donation 0 15
Provsion For Doubtful Debts 9 0
Loss On Sale Of Investments (Other Than Trade) 0 3
Loss On Sale Of Fixed Assets 6 11
1,910 2,557
SCHEDULE-M : FINANCIAL EXPENSES
Fixed Period Loan 3 0
Others 242 315
245 315
Bank Charges 74 89
319 404
16

SCHEDULES - Annexed to and forming part of the Accounts for the Period Ended 31st March 2010
Schedule N –Accounting Policies & Notes To Accounts
A. ACCOUNTING POLICIES
significant Account Policies are summarized below
a. Accounting Convention:
The accounts have been prepared in accordance with the historical cost convention.
(All Figures in Rupees Lacs)
b. Fixed Assets and Depreciation:
• Fixed assets are stated at cost less impairment loss, if any.
• Cost includes inward freight and expenses incidental to acquisition and installation.
• Depreciation on Fixed Assets have been provided for on straight line method at rates specified in schedule XIV of the Indian
Companies Act 1956.
c. Impairment of Assets:
The body corporate identifies impairable assets at the year-end in term of cash generating unit (CGU) concept based on para-5 to
13 of AS -28 issued by ICAI for the purpose of arriving at impairment loss on fixed assets and capital work-in-progress (as required
under para –34, As-28) being the difference between the book value and recoverable value of relevant assets. Impairment loss
if any when crystallizes is charged against revenue of the year. Entire plant constitute as single CGU.
d. Inventories:
Stocks are valued at lower of cost or net realizable value. Basis of determination of cost remain as follows:
• Raw materials, Packing materials, Stores & Spares On FIFO Basis
• Work-in-process At cost of input plus overhead
upto the stage of completion.
• Finished goods At cost of input plus appropriate Overhead.
e. Retirement Benefits:
Provision is made for gratuity and leave salary payable to the staff on the basis of actuarial valuation at the end of financial
year.
f. Recognition of Income and expenses:
• Sales and purchases are accounted for on the basis of passing of title to the goods.
• All items of incomes and expenses have been accounted for on accrual basis.
g. Contingent Liabilities:
Disputed liabilities and claims including claims raised by fiscal authorities, pending in appeal/court, for which no reliable estimate
can be made of the amount of obligation or which are remotely poised for crystallization are not provided in accounts but
disclosed in notes on accounts. However, present obligation as a result of past event with possibility of outflow of resources,
when reliably estimable, is recognized in accounts.
h. Translation of accounts of the body corporate from the currency of country of it’s incorporation NRS to INR :
Currency of Nepal not being fluctuable vis-à-vis reporting currency, the same has been translated at flat rate determined in the
ratio of Nepalese and Indian currency.
i. Translation of Foreign Currency:
• Receivables/payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end
and resultant gain or loss, is accounted for in the profit & Loss Account.
• Capital as well as revenue implication of exchange fluctuation charged or credited to revenue, are disclosed in notes to accounts.
17

B. NOTES TO ACCOUNTS
1. Accounts of the body corporate (a wholly owned subsidiary of Dabur International Ltd., a company incorporated Isle of MAN), incorporated
in Nepal, originally audited by overseas auditors pursuant to law of the country of its incorporation, have been made
out as per requirement of Indian Companies Act in due adherences of sub section 2(a) and 2(b) of section 212 of Companies Act,
1956. This entailed drawing up the balance sheet, profit & loss account (including auditor’s report thereon) of the subsidiary in
a manner so as to make it appear conforming to requirements of Indian Companies Act, 1956, for the purpose of annexing the
particulars of the body corporate with its holding company under section 212 (1) of the Companies Act, 1956.
Modification of accounts warranted under the exercise predominantly related to
(a) Translation of treatment of various heads of accounts in terms of accounting standards referred to in section 211(3c) of the Companies
Act, 1956.
(b) Presentation of accounts in terms of schedule VI of Companies Act, 1956, including disclosure of necessary information as laid
down under section 211(1) and 211(2) of Companies Act 1956.
2. Test of impairment in terms of A (C), schedule N did not prima facie provide any exigency of impairment thereby ruling out the
cause of providing for any impairment loss.
3. Income and Expenditure in Foreign Currency
This being a body corporate incorporated in Nepal., information relating to import, export, expenditure in foreign currency & CIF
value of import are superfluous herein.
4. Managerial Remuneration (paid or payable during the year, to the Directors) :
Payments made to the Director Mr. Rukma Rana includes pay, allowances and perquisites amount to Rs. 16 (previous year Rs. 63)
on account of remuneration.
5. Segment Report.
The primary segment identified for body corporate being lone FMCG segment, all the products fall in within its purview, no
segment report has been provided herein.
6. Contingent Liabilities:
A. Claims against the company not acknowledged as debts:
a. In respect of Income Tax under appeal Rs. 43 (previous year Rs. 43).
b. In respect of bank guarantees executed Rs.1671 (previous year Rs.2232).
c. In respect of Letter of Credits Rs.2060 (previous year Rs.1948)
d. Additional demand on account of VAT Rs. 151 ( previous year Rs.151)
e. Estimated amount of contract remaining to be executed on capital account Rs. 215
(previous year Rs. 111)
7. CIF value of Imports 2009-10 2008-09
Raw Material 0088 12143
Packing Material 5618 4170
Stores & Spares 202 70
Capital Goods 398 548
----------- ----------
16306 16931
----------- ----------
8. Value of Raw Materials, Stores & Spares consumed
Raw Material
Packing Material , Stores & Spares
31.03.2009 31.03.2008 31.03.2009 31.03.2008
Value % Value % Value % Value %
Imported 9,970 80.69 11,218 88.10 5,985 83.30 4,846 70.35
Indigenous 2,386 19.31 1,515 11.90 1,200 16.70 2,042 29.65
Total 12,356 100.00 12,733 100.00 7,185 100.00 6,888 100.00
9. Related Party Disclosures:
The body corporate enters into transaction with the companies that fall within the definition of a related party as contained in
AS 18 issued by ICAI. The management considers such transactions to be in normal course of business. Related parties comprise
the Directors, The Parent Company, fellow subsidiaries, subsidiaries and associates.
18

9. Particluars in respect of Goods Manufactured
Ultimate Parent
Company
(Dabur India
Ltd.)
Sales 16797
(17288)
Purchases 144
(799)
Parent Company
(Dabur
International
Ltd.)
0
(150)
668
(303)
Royalty paid 99
(137)
Fellow
Subsidiaries
(Asian Consumer
Care, Bangladesh
36
(0)
Key
Management
Personnel
(Mr. R.S.Rana)
Remuneration & Expenses 16
(63)
Interest paid 3
(4)
Total
16833
(17438)
812
(1102)
99
(137)
16
(63)
3
(4)
Total
Outstanding
as on
31.03.2010
0
(1448)
20
(40)
0
(0)
0
(0)
0
(0)
10. Particulars of Goods Manufactured
C lass of Materials Unit Licenced
Capacity
Lal Dant manjan MT 8,000
(8,000)
Real Fruit Juices KL 80,744
(80,744)
Installed
Capacity
7,200
(7,200)
87,597
(87,597)
Production Opening Stock Closing Stock Sale
Qty Qty Value Qty Value Qty Value
1,676
(1,728)
47,282
(49,064)
22
(11)
788
(375)
18
(8)
1,063
(2,071)
Others 279
(210)
Total 1,361
(2,289)
12
(22)
792
(788)
27
(18)
514
(1,063)
596
(279)
1,137
(1,082)
1,686
(1,717)
47,278
(48,650)
1,923
(1,627)
17,540
(15,993)
8,189
(9,580)
27,652
(27,200)
11. Pursuant to adoption of AS 15 as revised by ICAI, treatment of defined benefits obligations have been changed in terms of
standards with the following adjustments incorporated in accounts.
A.GRATUITY & LEAVE ENCASHMENT
(i) Changes in Present Value of Obligation
Particulars Gratuity Leave Encashment
Opening defined benefit obligation 78
(90)
Current Service Cost 16
(14)
Interest Cost 6
(6)
Actuarial Gain/Loss due to change in assumption 24
(-23)
Amalgamation 0
(0)
Benefits paid (1)
(-9)
122
(78)
25
(18)
11
(4)
2
(1)
30
(16)
0
(0)
(10)
(-14)
57
(25)
19

(ii) Change in Fair value of Assets
Particulars Gratuity Leave Encashment
Opening Fair Value of Plan Assets 48
(39)
Expected return on Plan Assets 5
(3)
Employer contribution 40
(18)
Actuarial Gain/Loss on Plan Asset 3
(-3)
Benefits Paid (1)
(-9)
(iii) Amount Recognized in Balance Sheet
Particulars Gratuity Leave Encashment
94
(48)
Present value of funded obligations 122
(78)
Fair value of plan assets 94
(48)
Net liability 28
(31)
Amount in Balance sheet provision for Gratuity 28
(31)
Net Liabilty 28
(31)
0
(0)
0
(0)
0
(0)
0
(0)
0
(0)
57
(25)
0
(0)
57
(25)
57
(25)
57
(25)
(iv) Amount Recognized in the Statement of Profit & Loss Account
Particulars Gratuity Leave Encashment
Current Service Cost 16
(14)
Interest on defined benefits obligations 6
(6)
Expected return on plan assets 5
(-3)
Net actuarial gain / loss (21)
(--20)
Amount included in employee benefit 48
(-3)
(v) Asset information
Particulars Gratuity Leave Encashment
Insurer Managed Fund 100%
(100%)
Summary of Actuarial assumptions
11
(4)
2
(1)
0
(0)
30
(16)
43
(20)
NA
(NA)
2009-10 2008-09
Discount rate 7.5% pa 8.5% pa
Expected rate of return on plan assets 8% pa 8% pa
Salary escalation ratio
20
0.05 0.05

12. All the figures have been expressed in Rs. Lacs unless stated otherwise.
13. The classification regarding small scale industries as defined under Micro, Small and Medium Development Board, 2006 is not
applicable to this company and the company has not classified its creditors on the basis of the definition of Micro, Small &
Medium Development Board ‘2006.
14. Additional Information as required under Part IV of Schedule VI of the Companies Act.
1. Registration details
Registration No.
Not Available
Balance Sheet Date 31/03/2010.
2. Capital Raised during the year (Rs. ‘000)
Public issue
Bonus issue
Right issue
Other Issue
nil
nil
nil
nil
3. Position of Mobilisation & deployment of fund (Rs. ‘000)
Total Liabilities 1328653
Total Assets 1328653
Sources of Funds :
Paid up capital 49908
Reserve & Surplus 782985
Secured Loan 286271
Unsecured Loan 194757
Deferred Tax Liability 14732
Application of funds
Net Fixed Assets 707153
Net Current Assets 621500
4. Performance of the Company (Rs. ‘000)
Turnover 2777813
Profit before tax 119972
Profit After tax 94360
5. Generic Name of three principal products/ services of the company
Item Code
Product Description
Juices
Hair Oil
Toothpowder
(Item Codes not available)
Signatures to the Schedules “A” to “N” Annexed to and forming part of the Accounts.
As per our report of even date attached
for DABUR NEPAL PRIVATE LIMITED
for G. BASU & CO
CHARTERED ACCOUNTANTS Pradip Burman chairman
R. No. 301174E R. S. Rana Managing Director
(Manoj Kumar Das)
PARTNER Date :9th April, 2010
(M. No. 013783)
Place Kathmandu
21