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Audited Balance Sheet and Profit & Loss Accounts for the year ended 31st March 2005
Contents
Page
Director’s Report 1
Balance Sheet 4
Schedules 6
This report has been prepared for the purpose of annexing the Annual Accounts of the Company with the Annual Accounts of
Dabur India Ltd., the holding company. The report is based on the performance of the Company during the period 1st April
2004 to 31st March 2005. The financial year of the Company will end on 15th July 2005 as per the Nepali Law.
Financial Results
The financial results for the Company’s working are as follows:
(Nrs in Lacs) ....
2004-05 2003-04
Dividend
An interim dividend of Rs 40.00 per equity share was declared in March 2005.
Acknowledgment
The directors wish to place on record their appreciation for the continued support and co-operation extended by Dabur India
Ltd., 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 His Majesty’s Government of Nepal and Government of India.
Pradip Burman
Chairman
Kathmandu, Nepal
19th April 2005
(2062/01/06)
To,
The Shareholders, Dabur Nepal Private Ltd.
We have audited the accompanying Balance Sheet of Dabur Nepal Private Limited, as of 31 March 2005, the related Profit and
Loss Account and the Cash Flow Statement for the year then ended. These financial statements are the responsibility of the
management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Nepal Standards on Auditing. Those 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 statements. 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.
As per the requirement of the Companies Act 2053 we report that:
a) we have obtained information and explanations, which, to the best of our knowledge and belief, were necessary for
the purpose of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as appears from
our examination of such books;
c) in our opinion, the Balance Sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report are
in agreement with the books of account maintained by the Company;
d) in our opinion, so far as appeared from our examination of the books, the business of the Company has been
conducted satisfactorily; and
e) to the best of our knowledge and in accordance with explanations given to us and from our examination of the
books of account of the Company necessary for the purpose of our audit, we have not come across cases where the
Board of Directors or any employees of the Company have acted contrary to the provisions of law, or committed any
misappropriation or caused loss or damage to the Company.
In our opinion, the financial statements read together with the notes appended in Schedule O presents fairly, in all material
respects, the financial position of the Company as of 31 March 2005, and of the results of operations and its cash flows for the
year then ended in accordance with Nepal Accounting Standards and other accounting standards generally applicable in Nepal
and comply with the provisions of the Companies Act 2053.
Shashi Satyal
Partner
For and on behalf of
T R Upadhya & Co.
Chartered Accountants
7 April 2005
Kathmandu, Nepal
Sources Of Funds
Share Holders’ Funds A
(A) Share Capital 798.52 798.52
(B) Reserves & Surplus 7,851.06 8,649.58 7,122.66 7,921.18
Loan Funds B
(A) Secured Loans 5,765.90 5,776.22
(B) Unsecured Loans 77.00 5,842.90 77.00 5,853.22
Total 14,492.48 13,774.40
Application Of Funds
Fixed Assets C
(A) Gross Block 14,803.75 12,789.46
(B) Less: Depreciation 5,844.48 5,017.20
(C) Net Block 8,959.27 7,772.26
Investments D 19.30 -
Current Assets, Loans & Advances E
(A) Inventories 7,097.31 5,318.12
(B) Sundry Debtors 1,664.65 1,722.47
(C) Cash & Bank Balances 12.70 91.78
(D) Loans And Advances 2,555.71 2,001.66
(E) Deposits And Other Receivables 2,873.53 4,112.81
14,203.90 13,246.84
Less :Current Liabilities & Provisions F
(A) Liabilities 6,549.33 5,555.79
(B) Provisions 2,190.38 1,753.73
8,739.71 7,309.52
Net Current Assets 5,464.19 5,937.32
Deferred Expenditure G 49.72 64.82
(To The Extent Not Written Off Or Adjusted)
Total 14,492.48 13,774.40
Accounting Policies O
As Per Our Report Of Even Date Attached For Dabur Nepal Pvt. Ltd.
Pradip Burman Chairman
Shashi Satyal R. S. Rana Managing Director
Partner A. Mehra CFO & Co. Secretary
G. Kashinath Chief Executive Officer
For T. R. Upadhya & Co.
Chartered Accountants
Kathmandu
7th April 2005
As Per Our Report Of Even Date Attached For Dabur Nepal Pvt. Ltd.
Pradip Burman Chairman
Shashi Satyal R. S. Rana Managing Director
Partner A. Mehra Cfo & Co. Secretary
G. Kashinath Chief Executive Officer
For T. R. Upadhya & Co.
Chartered Accountants
Kathmandu
7th April 2005
As at As at
31st March 2005 31st March 2004
Nrs. in Lacs Nrs. in Lacs
Schedule D - Investments
5% Special Bond 19.30 -
19.30 -
Schedule H - Sales
Sales
Domestic Sales 3,878.85 2,401.90
Export Sales 25,755.56 25,945.45
29,634.41 28,347.35
195.83 145.63
b) Fixed Assets
Fixed assets are recorded at cost less accumulated depreciation. The Company capitalizes all direct costs relating to the
acquisition and installation of fixed assets.
c) Depreciation
Depreciation is provided on written down value on all fixed assets (except land) at the rates prescribed by the Income Tax
Act 2058.
d) Investments
Long term investments are valued at cost. Current investments are valued at lower of cost or fair value as on the date of
the Balance Sheet. The Company provides for diminution in value of investments, other than temporary in nature, in the
financial statements.
e) Inventories
Inventories are valued at lower of cost or net realizable value using the following basis for determining costs:
Raw materials, Packing materials and Stores and spares On FIFO basis
Work in process At cost including proportionate factory overheads
Finished stock At costs including proportionate appropriate overheads
f) Retirement Benefits
Retirement benefits to employees comprise payments to gratuity fund, provident fund and leave salary. All contributions
to the provident fund are charged to profit & loss account as incurred and such contributions are paid to the approved
provident fund trust managed by trustees comprising employees.
Liabilities in respect of retirement benefits to employees are provided for as follows:
• Liabilities in respect of staff gratuity on actuarial valuation method.
• Liabilities in respect of accumulated leave salary on actuarial basis.
g) Borrowing Cost
Borrowing costs that are attributable to acquisition of qualifying assets are capitalized as part of the cost of such assets.
All other borrowing costs are charged to revenue.
h) Revenue Recognition
Sales are recognized on dispatch to customers and are recorded net of Value Added Tax. Export sales do not attract any
Value Added Taxes.
k) Deferred Expenditure
License fees and other costs associated with implementing an ERP are amortized over a period of five years.
2. Notes to Accounts
a) Change in accounting estimates
With effect from 1 April 2004, the Company has changed the basis of valuation of staff earned leave liability to actuarial
valuation from the accrual basis followed upto previous year. With this change, the staff earned leave liability as at 31
March 2005 is Rs 12.19 lacs against the liability of Rs 29.43 lacs recorded in the books as per the basis of valuation followed
up to the previous year. The excess provision of Rs 17.24 lacs will continue to be reflected in the books till the liability as
per actuarial valuation reaches such levels.
b) Contingent Liabilities
There are contingent liabilities in respect of:
(Nrs. in Lacs)
As at As at
31 March 2005 31 March 2004
d) Royalty
As per the Joint Venture Agreement, Royalty payable to Dabur India Ltd for the year is Rs 69.34 lacs (previous year Rs
112.42 lacs).
2. SALES
2004-05 2003-04
Unit Qty Nrs in Lacs Qty Nrs in Lacs
Lal Dant Manjan Cases 384,704 3,873.10 341,859 3,533.75
Binanca Tooth Powder Cases - - 2,802 24.89
Dabur Red Tooth Paste Cases 6,016 129.64
Vatika Hair Oil Cases 299,594 2,983.48 343,752 3,189.77
Vatika Fairness Pack Cases 5,759 6.82 8,500 15.40
Vatika Shampoo Cases 92,482 834.41 316,009 2,728.30
Anmol Shine Shampoo Cases 7,603 153.39 2,332 48.23
Amla Hair Oil Cases 152,381 1,507.53 205,085 1,884.80
Special Hair Oil Cases 6,084 129.79 6,286 83.81
Anmol Coconut Oil Cases 516 10.43 506 10.64
Anmol Sarson Cases 35,691 43.18 - -
Baby Olive Oil Cases 1,866 30.30 2,805 44.87
Hajmola Tablet Cases 253,646 2,759.83 265,067 2,960.34
Hajmola Candy Cases 11,482 127.34 10,041 106.96
Real Fruit Juice Cases 2,686,010 11,673.10 1,800,324 7,836.29
Glucose C & D Powder Cases 31,789 399.61 59,253 668.33
Chywanprash Cases 6,761 194.70 - -
Honey Cases 7,010 139.68
Pachan Churan MT 429 591.81 316 392.38
Dantmukta MT 2,129 2,690.80 2,356 2,985.18
DCP Mishran MT 242 1,014.70 258 1,227.14
Taxin Resin MT - - 14 143.05
MCS MT 2.00 166.40 - -
Sles 30% - Bulk MT 41.20 20.09 - -
Vatika Shampoo-bulk MT 7.00 8.43 - -
Vatika Hair Oil - bulk MT 14.81 14.92 - -
Stevia Powder MT 1.60 1.92 0.00 0.32
Pet Bottles & Caps TH 3,168.31 61.1 6,218 150.07
Tooth Brush& others TH 417.12 22.2 102.4 14.83
Nursery - Sapplings 19.46 8.38
Wax Foundation sheet 6.49 -
Others 19.81 7.57
Honey-bulk MT - - 179 282.05
29,634.41 28,347.35
3. CLOSING STOCK
2004-05 2003 - 04
Unit Qty Nrs in Lacs Qty Nrs. in Lacs
Lal Dant Manjan Cases 2,671 25.26 2,378 17.48
Binaca Tooth Powder Cases - - - -
Dabur Red Tooth Paste Cases 779 8.62 - -
Vatika Hair Oil Cases 960 9.13 2,520 19.49
Vatika Fairness Pack Cases 374 1.97 - -
Vatika Shampoo Cases 3,224 23.29 1,709 10.48
Anmol Shine Shampoo Cases 1,528 17.99 859 7.19
Amla Hair Oil Cases 350 3.20 1,151 10.47
Special Hair Oil Cases 206 1.61 506 5.14
Anmol Coconut Oil Cases 405 8.41 - -
Anmol Sarson Cases 379 3.40 - -
Baby Olive Oil Cases 40 0.80 42 0.58
Hajmola Tablet Cases 4,583 30.47 1,485 12.00
Hajmola Candy Cases 616 5.85 584 5.07
Real Fruit Juice Cases 24,055 95.58 1,910 7.70
Glucose C & D Powder Cases 1,071 9.53 732 7.01
Chywanprash Cases 8,186 143.68 - -
Honey Cases 1,034 22.84 - -
Pachan Curan MT 3.83 3.85 12 11.02
Dantmukta MT 47.50 45.73 1 1.10
DCP Mishran MT 0.22 0.45 2 4.70
Taxin Resin MT - - 16 121.53
MCS MT 4.81 369.79 - -
Honey-Bulk MT 1 0.99
831.44 241.95