Institute of Chartered Financial Analysts of India (ICFAI) University 2006 Certification Finance Security Analysis – II - Question Paper

In the current inflationary backdrop, supply chain efficiencies have presumed even greater importance. Company’s initiatives over the last couple of years in supply chain management have stood them in good despite R&D has been the cornerstone of Dabur’s success. Dabur Research Foundation (DRF) undertakes the Research and development activities. DRF is engaged in a wide spectrum of research on ayurvedic and herbal products, organic substances, phytochemicals (plant derived medicines), tissue culture, foods, cosmetics, oral care and other personal care products. Dabur India Limited recently announced its entry into personal wash segment with the national launch of its new Vatika- Honey & Saffron Soap. This launch marks Dabur's entry into the Rs.47 billion Indian soap market. Vatika is 1 of the 5 master brands of Dabur India with a turnover of over Rs.1 billion and the distinction of being awarded "Super brand" in 2003-04. Important developments that could affect the company’s operations includes a downward pattern in the domestic FMCG industry, rise in input costs, exchange rate fluctuations, significant modifications in political and economic environment in India, environment standards, tax laws, litigation and labour relations.



Balance Sheet of Dabur India Ltd. as on

(Rs. in million)

Liabilities
31.3.2005
31.3.2004
31.3.2003
31.3.2002
31.3.2001

Share Capital

(Share of Rs.1 each)
286.42
286.25
285.75
285.59
285.21

Reserves & Surplus
3,094.32
2,400.33
3,825.16
3,718.11
3,336.81

Net Worth (1)
3,380.74
2,686.58
4,110.91
4,003.70
3,622.02

Secured Loans (2)
157.04
190.94
290.03
361.79
275.29

Unsecured Loans (3)
327.67
206.16
774.33
1,731.68
1,633.29

Total Liabilities (1+2+3)
3,865.45
3,083.68
5,175.27
6,097.17
5,530.60




Assets






Fixed Assets






Gross Block
3,174.64
2,681.64
2,971.78
3,764.96
3,621.27

(-) Accumulated Depreciation
1,351.18
1,195.58
1,173.27
1,481.31
1,335.33

Net Block (A)
1,823.46
1,486.06
1,798.51
2,283.65
2,285.94

Capital Work in Progress (B)
92.61
63.38
248.05
160.58
142.75

Investments (C)
2,709.42
1,712.27
1,237.38
1,233.20
727.31

Earning:   Approval pending.