Assignment

of
Issues in Financial Reporting
on
Issues in Financial Reporting of DABUR INDIA LIMITED

Submitted To: Submitted By:

Vinay Dawar Pavit Paawan Kaur
Assistant Professor in Bcom (Hons) 6B
Commerce & Management 2021010103

SRI AUROBINDO COLLEGE OF COMMERCE AND MANAGEMENT LUDHIANA

(2020-2023)
Ques 1: Study the annual report of the allocated
company and show the Standalone and
Consolidated Balance Sheet and Statement of Profit
& Loss along with the interim financial reports.

Ans 1:

Reporting Framework

The Annual Report follows the International Framework as developed by IIRC

(www.integratedreporting.org) and should be read in conjunction with the financial
statements included herein and the notes thereto. The financial statements and statutory
disclosures including the Board’s Report, Management Discussion and Analysis (MDA), and
Corporate Governance Report are presented in conformance to the requirements of the
Companies Act, 2013 (including the rules made thereunder), Indian Accounting Standards,
the Securities and Exchange Board of India (SEBI) – Listing Obligations and Disclosure
Requirements, 2015 and Secretarial Standards issued by the Institute of Company Secretaries
of India.

Reporting Timeline

The fiscal 2022-23 Annual Integrated Report covers the financial and nonfinancial
performance of the Company from April 01, 2022 to March 31, 2023.
Standalone Balance Sheet
Standalone Statement Of Profit & Loss
Standalone Financial Statements Analysis:
A. Revenue and Profitability Analysis:

The Revenues of the Company consists primarily of sale of products and is recognized
when control of products being sold is transferred to customer and there is no unfulfilled
obligation. Revenue is measured at fair value of the consideration received or receivable
and is accounted for net of rebates and trade discounts. The estimation of discounts,
incentives and rebates recognized, related to sales made during the year, is material and
considered to be complex and subject to judgments.

B. Asset and Liability Position:

o Property, plant and equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. These tangible assets are held for use in
production, supply of goods or services or for administrative purposes.
o Capital work-in-progress represents expenditure incurred in respect of capital
projects and are carried at cost.
o Properties held to earn rentals or / and for capital appreciation or both but not for sale
in the ordinary course of business, use in the production or supply of goods or
services or for administrative purposes, are categorized as investment properties.
o Intangible assets acquired separately are measured on initial recognition at cost of
acquisition
o In accordance with Ind AS 109 ‘Financial Instruments’, the Company applies
expected credit loss (‘ECL’) model for measurement and recognition of impairment
loss for financial assets.

C. Cash Flow Position

o To analyse the cash flow of Dabur India over the past five years :

1. Net Profit/Loss Before Extraordinary Items and Tax: This represents the company's
profitability before considering any extraordinary items and taxes. It shows a generally
increasing trend over the past five years, indicating improved operational performance.
2. Net Cash Flow From Operating Activities: This metric reveals the cash generated from
the company's core business operations. The trend shows fluctuations but generally indicates
a positive cash flow from operating activities over the period.

3. Net Cash Used In Investing Activities: This reflects the cash flow from investments in
assets such as property, plant, and equipment, as well as acquisitions or divestitures. The
trend varies, with some years showing net cash outflows and others showing inflows.

4. Net Cash Used From Financing Activities: This indicates the cash flow from financing
activities like issuing or repurchasing stock, issuing debt, or paying dividends. The trend
shows fluctuations, with some years having net cash inflows and others having outflows.

5. Foreign Exchange Gains/Losses: This represents gains or losses due to fluctuations in

foreign exchange rates. The amounts are relatively small and fluctuate slightly each year.

6. Net Increase/Decrease in Cash and Cash Equivalents: This shows the overall change in
cash and cash equivalents during the year. The trend fluctuates, with some years showing
increases and others decreases.

7. Cash and Cash Equivalents Begin and End of Year: These figures indicate the cash
position of the company at the beginning and end of each year. The trend shows fluctuations,
with some years starting or ending with positive balances and others with negative balance
Consolidated Statement Balance Sheet
Consolidated Statement Profit & Loss Statement
 A. Revenue Analysis

1. Revenue from Operations:

- Consumer Care Business:
- March 2023: Rs. 9,202.25 Cr
- March 2022: Rs. 9,148.66 Cr
- Food Business:
- March 2023: Rs. 1,980.91 Cr
- March 2022: Rs. 1,460.63 Cr
- Retail Business:
- March 2023: Rs. 105.82 Cr
- March 2022: Rs. 75.38 Cr
- Other Segments:
- March 2023: Rs. 137.53 Cr
- March 2022: Rs. 123.36 Cr
- Operating Revenue (Total):
- March 2023: Rs. 11,426.51 Cr
- March 2022: Rs. 10,808.03 Cr

2. Other Operating Income (Scrap Sales):

- March 2023: Rs. 29.45 Cr
- March 2022: Rs. 24.02 Cr

3. Total Revenue covered under Ind AS 115:

- March 2023: Rs. 11,455.96 Cr

This analysis provides a breakdown of revenue from different segments of Dabur India's
operations. It indicates the company's performance and contribution from each business
segment to its overall revenue. The data shows growth in revenue across most segments from
March 2022 to March 2023, reflecting positive performance and potentially successful
strategies implemented by the company.
B. Profitability Analysis:
1. Despite a slight decrease in total income from 11,281.84 in 2022 to 11,975.28 in 2023,
Dabur India managed to improve its profit before tax from 2,268.68 in 2022 to 2,218.68 in
2023, indicating effective cost management and operational efficiency.

2. The company witnessed a rise in expenses, particularly in employee benefits and

advertisement and publicity costs. However, Dabur India successfully offset these increases
by controlling other expenses and managing its finance costs, contributing to a resilient
profit margin.

3. Dabur India's net profit for the year remained relatively stable at 1,701.33 in 2023
compared to 1,742.30 in 2022, demonstrating the company's ability to maintain profitability
despite market challenges and changes in operating conditions.

C. Cash Flow Position:

- Calculation and interpretation of key financial ratios:

- Profitability ratios
- Liquidity ratios

- Solvency ratios

- Efficiency ratios
Ques 2: Study the annual report of the allocated
company and identify whether the company is
following Price Level Accounting, Human Resource
Accounting, and Social Accounting in its financial
reporting. If yes, then show the disclosures related
to Price Level Accounting, Human Resource
Accounting, and Corporate Social Responsibility of
that company.
Ans 2 :

1. Swasthya Aur Suraksha

An integrated project aimed at promoting Health, Nutrition and Well-Being amongst the
underprivileged sections of the society, with a focus on overall development of the girl child.
Under this project, Dabur runs a series of awareness and a capacity building programmes in
rural schools and villages. The programmes have been specially crafted to give the girl child
the right chances to nurture her talent and skills, and helping them excel in different areas of
life.

The project rests on four key pillars:

· Safe and Nutritious Food: We organise Safe & Nutritious Food (SNF) campaigns across
schools to build awareness amongst the kids about a balanced diet.

· Promoting Kitchen Garden: We provide the kids access to nutritional food products and
green vegetables. Under this project, we have been distributing seeds of fruit plants and
vegetables to the school kids and helping them grow these plants in their kitchen garden to
ensure that they have easy access to these fruits and vegetables. This also helps supplement
their household income as the families sell their excess produce in the market.
· Promoting Health & Well-Being: Special health camps, oral hygiene camps and awareness
camps on menstrual hygiene organised across schools and villages.

· Self-Defence Training: Special training offered to girls in villages, to promote life skill for
self-protection and self-development among the girls.

2. Promoting Preventive Healthcare

As an organization, Dabur is sworn to its motto of being ‘dedicated to the Health and Well-
Being of every household’. With our community development initiatives too, we have been
working towards promoting health and preventing diseases through a series of interventions,
including action to address social determinants and health inequity. Our activities under
Promoting Preventive Healthcare seek to empower people to increase control over, and to
improve, their health through a variety of health literacy and awareness efforts and focused
action on increasing healthy behaviour. Our health initiatives have been chalked out with a
clear focus on women and children.

3. Ensuring Environment Sustainability

Nature and biodiversity make life possible. As a leading manufacturer of consumer products
based on Nature, Dabur understands that healthy ecosystems cannot just help drive our
economy but also help us cope with the impacts of climate change. This forms the backbone
of our community-led Environment Sustainability initiatives.

4. Promotion of Education
At Dabur, we believe that education is both the means to a better life and a key to ensure
overall development of the society. Our Education programmes form a key pillar of our
development agenda. We have been working towards identifying and removing barriers to
education for those most in need by creating a better learning environment for children in the
hinterland.

5. Support for COVID Relief

With vulnerable sections of community intensely affected by the second wave of the COVID
pandemic, we leveraged our reach to help them navigate these troubled times. Some of our
efforts towards this end include:

· Helping frontline workers in their fight against COVID-19 in India

· Supporting community workers, volunteers in Uttar Pradesh, Himachal Pradesh and

Uttarakhand

· Providing food and nutrition support to the underprivileged sections

· Supporting agencies, NGOs in COVID assessment

· Supporting COVID Care Centres in Delhi-NCR

· Supporting daily wage workers in Assam with dry ration

Ques 3: Study the annual report of the allocated

company and identify whether the company is
disclosing the information based on different
operating segments. If yes, then show the
disclosures related to segmental reporting.

Ans 3:

A. Operating segments: Operating segments are reported in a manner consistent with

the internal reporting provided to the Chief Operating Decision Maker (‘CODM’)
of the Company. The CODM is responsible for allocating resources and assessing
performance of the operating segments of the Company.
B. Operating segments: Consumer care business Home care, personal care and
health care Food business Juices, beverages and culinary Other segments Guar
gum, pharma and others
C. Identification of segments: The chief operational decision maker monitors the
operating results of its business segments separately for the purpose of making
decisions about resource allocation and performance assessment. Segment
performance is evaluated based on profit and loss of the segment and is measured
consistently with profit or loss in these financial statements. Operating segments
have been identified on the basis of the nature of products. Segment revenue and
results The expenses and income which are not directly attributable to any business
segment are shown as unallocable expenditure (net of unallocable income).
D. Segment assets and liabilities: Assets used by the operating segments mainly
consist of property, plant and equipment, trade receivables, cash and cash
equivalents and inventories. Segment liabilities include trade payables and other
liabilities. Common assets and liabilities which cannot be allocated to any of the
segments are shown as a part of unallocable assets/liabilities. The measurement
principles of segments are consistent with those used in preparation of these
standalone financial statements. There are no inter-segment transfers.
Ques 4: Study the annual report of the allocated
company and identify whether the company is
preparing any Value-Added Statement apart from
the financial statements. If yes, then show the
various value-added statements prepared by the
company.
Ans 4 :

There is no such value added statements but there are many reports and vision set by
Dabur India Limited which adds up value to shareholders :

1. A significant portion of the key talent compensation delivered through restricted ESOP
Plans with retention expectations in place to ensure alignment of the executive interest with
those of shareholders.
2. Utilizes company and business unit/department based metrics which are necessary for
long term business sustenance and shareholder wealth creation.
3. Utilizes measures that are clear, strategically focused, and easily supported by our
systems.
4. Provides suitable rewards that are meaningful to the performer, consistent with our
strategy, and reinforce our culture.
5. Helps to make our pay competitive (70th to 90th percentile) with leading companies
where we recruit for talent.

Our governance approach promotes the ethos of transparency, accountability, and fairness
while creating competitive positioning in the market to generate long-term value for the
shareholders and foster the stakeholders’ rights and interests.

We are committed to continuously scaling up our Corporate Governance standards. Strong

corporate governance is the bedrock of our sustained performance and has helped us gain
the trust and respect of all our stakeholders.
PERFORMANCE DISCLOSURES

Good corporate governance is an essential part of well managed, successful business

enterprise that delivers value to shareholders.

Dabur India Limited (“Dabur” or the “Company”) has worked diligently to integrate ethical
analysis into defining its corporate culture with an aim to social responsibility and return.

Besides complying with the legal framework of corporate governance practices, Dabur has
voluntarily adopted and evolved various practices of governance conforming to highest
ethical and responsible standards of business, globally benchmarked.
STAKEHOLDERS RELATIONSHIP COMMITTEE

The Committee ensures cordial investor relations, oversees the mechanism for redressal of
investors’ grievances and specifically looks into various aspects of interest of shareholders.
The Committee specifically looks into redressing shareholders’/ investors’ complaints/
grievances pertaining to share transfers/ transmission, non-receipts of annual reports,
nonreceipt of declared dividend and other allied complaints.

Bibliography
https://www.dabur.com/digital-annual-report/dabur-report-complete.pdf
https://www.dabur.com/
https://www.moneycontrol.com/financials/daburindia/balance-sheetVI/DI
Bibliography