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SUMMER TRAINING REPORT

ON

DABUR INDIA LTD.

(WORKING CAPITAL ANALYSIS OF MAJOR FMCG COMPANIES)

Submitted to

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(INDUSTRY INTEGRATED)

(II SEMESTER)

SUBMITTED BY

NAME : SANDEEP SHEORAN

REGN. NO. :

ROLL NO. :

JAGANNATH INSTITUTE OF MANAGEMENT SCIENCES

(34,RING ROAD,LAJPAT NAGAR IV,NEW DELHI-24)

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CERTIFICATE

This is to certify that SANDEEP SHEORAN, a student of the Maharshi Dayanand University, Rohtak, has prepared his training report entitled “WORKING CAPITAL ANALYSIS OF MAJOR FMCG COMPANIES” at Jagannath institute of management sciences, under my guidance. He has fulfilled all requirements leading to award of the degree of BBA(Industry integrated). This report is the record of bonafide training undertaken by him and no part of it has been submitted to any other University or Educational Institution for award of any other degree/diploma/fellowship or similar titles or prizes.

I wish him all success in life.

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STUDENTS DECLARATION

I hereby declare that the Training Report conducted at

DABUR INDIA LTD, SHAHIBABAD

Under the guidance of

( MR R.S DANI )

Submitted in Partial fulfillment of the requirements for the

Degree of

BACHELOR OF BUSINESS ADMINISTRATION

(Industry Integrated)

To

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

is my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes.

SANDEEP SHEORAN

REGN. NO. :

PLACE: ROLL NO. :

DATE:

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ACKNOWLEDGEMENT

I am grateful to Mr. R.S Dani, Dabur India Ltd. For being a constant source of guidance during my training period. His support helped me to accomplish the project.

I am very confident that this project will help me in my future.

Sandeep Sheoran

BBA- B

JIMS, Lajpat nagar

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CONTENTS

1. About company Page 1

2. Dabur at a glance Page 2

3. History of the dabur Page 4

4. Dabur group Page 8

5. Board of directors Page 9

6. Objectives of study Page 11

7. Methodology Page 12

8. Findings Page 16

9. Calculation of Net Working Capital Page 31

10. Conclusion Page 41

11. Table of net working capital Page 46

12. Bibliography Page 47

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ABOUT COMPANY

"What is that life worth which cannot bring comfort to others"

The doorstep 'Daktar' The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague.

Soon the news of his medicines traveled, and he came to be known as the trusted 'Daktar' or Doctor who came up with effective cures. And that is how his venture Dabur got its name - derived from the Devanagri rendition of Daktar Burman.

Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability.

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Dabur At-a-Glance

Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.

Leading consumer goods company in India with a turnover of Rs. 2874.60 Crore (FY10)

3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD)

3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).

17 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries Wide and deep market penetration with 50 C&F agents, more than 5000

distributors and over2.8 million retail outlets all over India

Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods

Master brands: Dabur - Ayurvedic healthcare products Vatika - Premium hair care Hajmola - Tasty digestives Réal - Fruit juices & beverages Fem - Fairness bleaches & skin care products

9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash,Vatika, Réal, Dabur Red Toothpaste, Dabur Lal Dant Manjan,Babool, Hajmola and Dabur Honey

Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market

Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.

Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row

Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day

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Leader in herbal digestives with 90% market share

Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats

Has more than 300 products sold through prescriptions as well as over the counter

Major categories in traditional formulations include:- Asav Arishtas- Ras Rasayanas- Churnas- Medicated Oils

Proprietary Ayurvedic medicines developed by Dabur include:- Nature Care Isabgol- Madhuvaani- Trifgol

Division also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of students

International Business Division (IBD) caters to the health and personal care needs of customers across different international markets, spanning the Middle East, North & West Africa, EU and the US with its brands Dabur & Vatika

Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales

Leveraging the 'Natural' preference among local consumers to increase share in perosnal care categories

Focus markets:- GCC- Egypt- Nigeria- Bangladesh- Nepal- US

High level of localization of manufacturing and sales & marketing

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HISTORY

1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia

1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicinesDabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science.

1930 - Automation and upgradation of Ayurvedic products manufacturing initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through AyurvedaDabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin packWidening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India.

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segmentAddressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses.

1972 - Shifts base to Delhi from Calcutta

1978 - Launches Hajmola tabletDabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

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1989 - Care with funThe Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage.

1994 - Comes out with first public issue

1994 - Enters oncology segment

1994 - Leadership in health careDabur establishes its leadership in health care as one of only two companies worldwide to launch theanti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source

1996 - Enters foods business with the launch of Real Fruit Juice

1996 - Real blitzkriegDabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country.

1998 - Burman family hands over management of the company to professionals

2000 - The 1,000 crore markDabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses.

2001 - Super specialty drugsWith the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4crore

2003 - Dabur demerges Pharmaceuticals business

Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, Dabur India now largely comprises of the FMCG business that include personal care products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business would include Allopathic, Oncology

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formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the Pharmaceutical business.

Maintaining global standards

As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification.

Science for nature

Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation.

2005 - Dabur aquires Balsara

As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market, in a Rs 143-crore all-cash deal.

2005 - Dabur announces bonus after 12 years

Dabur India announced issue of 1:1 Bonus share to the shareholders of the company, i.e. one share for every one share held. The Board also proposed an increase in the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore.

2006 - Dabur crosses $2 bln market cap, adopts US GAAP.

Dabur India crosses the $2-billion mark in market capitalisation. The company also adopted US GAAP in line with its commitment to follow global best practices and adopt highest standards of transparency and governance.

2006 - Approves FCCB/GDR/ADR up to $200 million

Moving forward on the inorganic growth path, Dabur India decides to raise up to $200 million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any other securities.The capital raised will be used to fund Dabur's aggressive growth ambitions and acquisition plans in India and abroad.

2007 - Celebrating 10 years of Real

Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of the brand. The new refined modern look

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depicts the natural goodness of the juice from freshly plucked fruits.

2007 - Foray into organised retail

Dabur India announced its foray into the organised retail business through a wholly-owned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format.

2007 - Dabur Foods merged with Dabur India

Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to extract synergies and unlock operational efficiencies. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space.

2008 - Acquires Fem Care Pharma

Dabur India acquires Fem Care Pharma, a leading player in the women's skin care market. Besides an entry into the high-growth skin care market with an established brand name FEM, this transaction also offers Dabur a strong platform to enter newer product categories and markets.

2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club

Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red Toothpaste crosses the billion rupee turnover mark within five years of its launch.

Dabur Group

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With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently.

Given the vast range of products, sourcing, production and marketing have been divested to the group companies that conduct

their operations independently:

Board of Directors

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Dabur has an illustrious Board of Directors who are committed to take the company to newer levels of corporate governance.

The Board comprises of:

Chairman

Dr Anand Burman

Vice – Chairman

Mr Amit Burman

Whole Time Directors

Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip Burman

Non Whole Time Promoters, Directors

Mr. Mohit Burman

Independent Directors

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Mr. Bert Paterson Mr. P. N. Vijay Mr. R C Bhargava Dr. S. Narayan

Mr. Analjit Singh Dr. Ajay Dua

Objectives of Study

To analyze the financial position of DABUR.

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To analyze the liquidity position of DABUR.

Methodology

Working capital analysis of major FMCG companies

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Working capital

Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities. It is a derivation of working capital that is commonly used in valuation techniques such as DCFs (Discounted cash flows). If current assets are less than current liabilities, an entity has a working capital deficiency, also called aworking capital deficit.

Net Working Capital = Current Assets − Current Liabilities

Net Operating Working Capital = Current Assets − Non Interest-bearing Current

Liabilities

Equity Working Capital = Current Assets − Current Liabilities − Long-term Debt

A company can be endowed with assets and profitabilitybut short of liquidity if its assets cannot readily be converted into cash. Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.

Current Assets

In accounting, a current asset is an asset on the balance sheet which can either be converted to cash or used to pay current liabilities within 12 months. Typical current assets include cash, cash equivalents, short-term investments, accounts receivable, inventory and the portion of prepaid liabilities which will be paid within a year.

On a balance sheet, assets will typically be classified into current assets and long-term assets.

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The current ratio is calculated by dividing total current assets by total current liabilities. It is frequently used as an indicator of a company's liquidity, its ability to meet short-term obligations.

Current liabilities

In accounting, current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm, whichever period is longer. A more complete definition is that current liabilities are obligations that will be settled by current assets or by the creation of new current liabilities.

An operating cycle for a firm is the average time that is required to go from cash to cash in producing revenues.

For example, accounts payable for goods, services or supplies that were purchased for use in the operation of the business and payable within a normal period of time would be current liabilities.

Bonds, mortgages and loans that are payable over a term exceeding one year would be fixed liabilities or long-term liabilities. However, the payments due on the long-term loans in the current fiscal year could be considered current liabilities if the amounts were material.

The proper classification of liabilities provides useful information to investors and other users of the financial statements. It may be regarded as essential for allowing outsiders to consider a true picture of an organization's fiscal health.

One application is in the current ratio, defined as the firm's current assets divided by its current liabilities. A ratio higher than one means that current assets, if they can all be converted to cash, are more than sufficient to pay off current obligations. All other things equal, higher values of this ratio imply that a firm is more easily able to meet its obligations in the coming year.

Calculation

Current assets and current liabilities include three accounts which are of special importance. These accounts represent the areas of the business where managers have the most direct impact:

accounts receivable (current asset)

inventory (current assets), and

accounts payable (current liability)

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The current portion of debt (payable within 12 months) is critical, because it represents a short-term claim to current assets and is often secured by long term assets. Common types of short-term debt are bank loans and lines of credit.

An increase in working capital indicates that the business has either increased current assets (that is has increased its receivables, or other current assets) or has decreased current liabilities, for example has paid off some short-term creditors.

Implications on M&A: The common commercial definition of working capital for the purpose of a working capital adjustment in an M&A transaction (i.e. for a working capital adjustment mechanism in a sale and purchase agreement) is equal to:

Current Assets – Current Liabilities excluding deferred tax assets/liabilities, excess cash, surplus assets and/or deposit balances.

Cash balance items often attract a one-for-one purchase price adjustment.

Working capital management

Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that the firm is able to continue its operations and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses.

Decision criteriaBy definition, working capital management entails short term decisions - generally, relating to the next one year period - which are "reversible". These decisions are therefore not taken on the same basis as Capital Investment Decisions (NPV or related, as above) rather they will be based on cash flows and / or profitability.

One measure of cash flow is provided by the cash conversion cycle - the net number of days from the outlay of cash for raw material to receiving payment from the customer. As a management tool, this metric makes explicit the inter-relatedness of decisions relating to inventories, accounts receivable and payable, and cash. Because this number effectively corresponds to the time that the firm's cash is tied up in operations and unavailable for other activities, management generally aims at a low net count.

In this context, the most useful measure of profitability is Return on capital (ROC). The result is shown as a percentage, determined by dividing relevant income for the 12

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months bycapital employed; Return on equity (ROE) shows this result for the firm's shareholders. Firm value is enhanced when, and if, the return on capital, which results from working capital management, exceeds the cost of capital, which results from capital investment decisions as above. ROC measures are therefore useful as a management tool, in that they link short-term policy with long-term decision making. See Economic value added (EVA).

Credit policy of the firm: Another factor affecting working capital management is credit policy of the firm. It includes buying of raw material and selling of finished goods either in cash or on credit. This affects the cash conversion cycle.

Management of working capitalGuided by the above criteria, management will use a combination of policies and techniques for the management of working capital. These policies aim at managing the current assets (generally cashand cash equivalents, inventories and debtors) and the short term financing, such that cash flows and returns are acceptable.

Cash management. Identify the cash balance which allows for the business to meet day to day expenses, but reduces cash holding costs.

Inventory management. Identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials - and minimizes reordering costs - and hence increases cash flow. Besides this, the lead times in production should be lowered to reduce Work in Progress (WIP) and similarly, the Finished Goods should be kept on as low level as possible to avoid over production - see Supply chain management; Just In Time (JIT); Economic order quantity(EOQ); Economic quantity

Debtors management. Identify the appropriate credit policy, i.e. credit terms which will attract customers, such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital (or vice versa); see Discounts and allowances.

Short term financing. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank loan (or overdraft), or to "convert debtors to cash" through "factoring".

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Findings

Fundamentals of Major FMCG Giants

Dabur India Ltd.

Yearly Results of Dabur India ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sales Turnover 1,369.68 1,778.02 2,083.40 2,417.91 2,874.60Other Income 5.35 16.51 27.91 21.32 15.11Total Income 1,375.03 1,794.53 2,111.31 2,439.23 2,889.71Total Expenses 1,135.97 1,477.41 1,706.16 1,973.47 2,325.17Operating Profit 233.71 300.61 377.24 444.44 549.43Extraordinary Income/Expenses 0.51 -- -- -- --Tax On Extraordinary Items -- -- -- -- --Net Extra Ordinary Income/Expenses

-- -- -- -- --

Gross Profit 239.06 317.12 405.15 465.76 564.54Interest 5.66 4.43 8.55 13.34 5.60PBDT 233.91 312.69 396.60 452.42 558.76Depreciation 19.05 28.47 31.42 27.42 31.91Depreciation On Revaluation Of Assets

-- -- -- -- --

PBT 214.86 284.22 365.18 425.00 526.85Tax 25.78 32.14 48.41 51.44 93.70Net Profit 189.08 252.08 316.77 373.56 433.15Prior Years Income/Expenses -- -- -0.86 -- -0.18Depreciation for Previous Years Written Back/ Provided

-- -- -- -- --

Equity Dividend rate 175 141 150 175 200Earnings Per Share 3.30 2.92 3.67 4.32 4.98Book Value -- -- -- -- --Equity 57.33 86.29 86.40 86.51 86.90Reserves 390.54 316.90 441.92 651.69 662.48Face Value 1.00 1.00 1.00 1.00 1.00

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Profit and loss account (Dabur India Ltd.)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06IncomeOperating income 2,867.42 2,408.33 2,093.63 1,745.14 1,345.50ExpensesMaterial consumed 1,384.29 1,232.85 1,023.94 778.27 582.43Manufacturing expenses 58.17 54.22 54.02 39.24 27.10Personnel expenses 212.34 167.32 149.69 118.66 98.31Selling expenses 474.79 358.75 337.69 403.42 316.46Adminstrative expenses 187.90 153.67 138.69 100.90 80.24Expenses capitalised - - - - -Cost of sales 2,317.49 1,966.81 1,704.03 1,440.48 1,104.55Operating profit 549.93 441.52 389.60 304.66 240.95Other recurring income 14.85 10.72 9.76 3.14 1.05Adjusted PBDIT 564.78 452.24 399.36 307.80 242.01Financial expenses 13.28 14.47 10.92 4.43 5.73Depreciation 31.91 27.42 25.75 21.98 19.05Other write offs 5.66 3.94 5.67 6.49 4.26Adjusted PBT 513.93 406.41 357.01 274.90 212.97Tax charges 93.70 51.44 48.40 32.15 25.78Adjusted PAT 420.23 354.97 308.61 242.76 187.19Non recurring items 13.10 18.58 8.16 9.32 1.90Other non cash adjustments -0.19 -0.72 -0.86 -0.13 0.21Reported net profit 433.14 372.84 315.92 251.94 189.29Earnigs before appropriation 862.08 696.07 545.07 426.95 314.52Equity dividend 173.60 151.39 129.60 122.13 100.32Preference dividend - - - - -Dividend tax 29.50 25.73 22.03 17.13 14.07Retained earnings 658.98 518.95 393.44 287.70 200.13

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Balance sheet (Dabur India Ltd.)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06Sources of fundsOwner's fundEquity share capital 86.76 86.51 86.40 86.29 57.33Share application money 0.14 - - - -Preference share capital - - - - -Reserves & surplus 662.48 651.69 441.92 316.90 390.54Loan fundsSecured loans 24.27 8.26 16.45 19.28 19.23Unsecured loans 81.80 130.72 0.24 0.26 1.25Total 855.45 877.17 545.01 422.73 468.35Uses of fundsFixed assetsGross block 687.23 518.77 467.93 404.30 328.23Less : revaluation reserve - - - - -Less : accumulated depreciation 236.28 210.45 189.77 168.97 142.46Net block 450.95 308.32 278.17 235.33 185.77Capital work-in-progress 23.31 51.71 16.26 3.71 13.07Investments 348.51 232.05 270.37 145.35 275.08Net current assetsCurrent assets, loans & advances 941.77 973.42 576.82 397.78 285.68Less : current liabilities & provisions 911.83 696.97 610.57 379.27 324.12Total net current assets 29.94 276.45 -33.75 18.52 -38.44Miscellaneous expenses not written 2.74 8.64 13.95 19.82 32.87Total 855.45 877.17 545.01 422.73 468.35Notes:Book value of unquoted investments 98.60 319.12 67.99 65.99 234.43Market value of quoted investments 250.52 118.48 205.19 80.82 43.43Contingent liabilities 173.48 174.15 171.24 153.25 190.02Number of equity shares outstanding (Lacs) 8675.86 8650.76 8640.23 8628.84 5733.03

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ITC Ltd.

Yearly Results of ITC ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sales Turnover 9,790.53 12,369.30 13,947.53 15,582.73 18,382.24Other Income 286.08 336.49 610.90 340.31 374.33Total Income 10,076.61 12,705.79 14,558.43 15,923.04 18,756.57Total Expenses 6,463.15 8,412.89 9,543.59 10,529.57 12,079.19Operating Profit 3,327.38 3,956.41 4,403.94 5,053.16 6,303.05Extraordinary Income/Expenses -45.02 -- -- -- --Tax On Extraordinary Items -- -- -- -- --Net Extra Ordinary Income/Expenses

-- -- -- -- --

Gross Profit 3,613.46 4,292.90 5,014.84 5,393.47 6,677.38Interest 11.93 3.28 4.61 18.32 53.36PBDT 3,556.51 4,289.62 5,010.23 5,375.15 6,624.02Depreciation 332.34 362.92 438.46 549.41 608.71Depreciation On Revaluation Of Assets

-- -- -- -- --

PBT 3,224.17 3,926.70 4,571.77 4,825.74 6,015.31Tax 988.82 1,226.73 1,451.67 1,562.15 1,954.31Net Profit 2,235.35 2,699.97 3,120.10 3,263.59 4,061.00Prior Years Income/Expenses -- -- -- -- --Depreciation for Previous Years Written Back/ Provided

-- -- -- -- --

Equity Dividend Rate 265 310 350 370 1000Earnings Per Share 5.95 7.18 8.28 8.65 10.64Book Value -- -- -- -- --Equity 375.52 376.22 376.86 377.44 381.82Reserves 8,626.77 10,003.78 11,624.69 13,302.55 13,628.17Face Value 1.00 1.00 1.00 1.00 1.00

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Profit and loss account (ITC Ltd.)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06IncomeOperating income 18,567.45 14,985.81 14,032.20 12,313.83 9,798.33ExpensesMaterial consumed 7,588.23 6,234.66 6,275.33 5,484.52 4,130.04Manufacturing expenses 801.13 797.00 383.42 318.32 295.25Personnel expenses 1,014.87 903.37 745.00 630.15 541.40Selling expenses 1,238.24 1,067.83 1,044.40 803.29 627.00Adminstrative expenses 1,864.54 1,133.48 1,266.57 1,116.23 853.39Expenses capitalised -71.88 -72.55 -112.75 -42.52 -15.78Cost of sales 12,435.13 10,063.79 9,601.97 8,309.99 6,431.30Operating profit 6,132.32 4,922.02 4,430.23 4,003.84 3,367.03Other recurring income 496.27 422.80 479.82 300.14 273.22Adjusted PBDIT 6,628.59 5,344.82 4,910.05 4,303.98 3,640.25Financial expenses 90.28 47.65 24.61 16.04 21.10Depreciation 608.71 549.41 438.46 362.92 332.34Other write offs - - - - -Adjusted PBT 5,929.60 4,747.76 4,446.98 3,925.02 3,286.81Tax charges 1,965.43 1,565.13 1,480.97 1,263.07 1,027.57Adjusted PAT 3,964.17 3,182.63 2,966.01 2,661.95 2,259.24Non recurring items 48.78 3.41 36.68 -23.92 -70.02Other non cash adjustments 48.65 81.52 117.41 61.94 46.13Reported net profit 4,061.60 3,267.56 3,120.10 2,699.97 2,235.35Earnigs before appropriation 4,919.74 3,992.01 3,767.63 3,262.03 2,846.76Equity dividend 3,818.18 1,396.53 1,319.01 1,166.29 995.12Preference dividend - - - - -Dividend tax 634.15 237.34 224.17 198.21 139.58Retained earnings 467.41 2,358.14 2,224.45 1,897.53 1,712.06

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Balance sheet (ITC Ltd.)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06Sources of fundsOwner's fundEquity share capital 381.82 377.44 376.86 376.22 375.52Share application money - - - - -Preference share capital - - - - -Reserves & surplus 13,628.17 13,302.55 11,624.69 10,003.78 8,626.79Loan fundsSecured loans - 11.63 5.57 60.78 25.91Unsecured loans 107.71 165.92 208.86 140.10 93.82Total 14,117.70 13,857.54 12,215.98 10,580.88 9,122.04Uses of fundsFixed assetsGross block 11,967.86 10,558.65 8,959.70 7,134.31 6,227.17Less : revaluation reserve 54.39 55.09 56.12 57.08 59.17Less : accumulated depreciation 3,825.46 3,286.74 2,790.87 2,389.54 2,065.44Net block 8,088.01 7,216.82 6,112.71 4,687.69 4,102.56Capital work-in-progress 1,008.99 1,214.06 1,126.82 1,130.20 399.97Investments 5,726.87 2,837.75 2,934.55 3,067.77 3,517.01Net current assetsCurrent assets, loans & advances 8,463.31 8,450.99 7,306.99 6,281.07 5,228.49Less : current liabilities & provisions 9,169.48 5,862.08 5,265.09 4,585.85 4,125.99Total net current assets -706.17 2,588.91 2,041.90 1,695.22 1,102.50Miscellaneous expenses not written - - - - -Total 14,117.70 13,857.54 12,215.98 10,580.88 9,122.04Notes:Book value of unquoted investments 5,108.69 2,861.88 2,958.68 3,091.90 3,541.14Market value of quoted investments 1,355.62 9.12 13.42 13.30 13.46Contingent liabilities 258.73 261.36 308.08 129.56 98.72Number of equity sharesoutstanding (Lacs)

38181.77 37744.00 37686.10 37622.23 37551.79

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Godrej Consumer Products Ltd.

Yearly Results of Godrej Consumer Products

------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sales Turnover 657.32 758.52 887.59 1,088.01 1,267.88Other Income 8.66 5.30 8.70 10.26 50.60Total Income 665.98 763.82 896.29 1,098.27 1,318.48Total Expenses 519.88 611.09 702.55 924.03 1,001.93Operating Profit 137.44 147.43 185.04 163.98 265.95Extraordinary Income/Expenses -- 10.13 -- 0.64 --Tax On Extraordinary Items -- -- -- -- --Net Extra Ordinary Income/Expenses

-- -- -- -- --

Gross Profit 146.10 152.73 193.74 174.24 316.55Interest 4.04 5.84 8.82 -26.05 3.66PBDT 142.06 157.02 184.92 200.93 312.89Depreciation 10.79 12.49 15.70 14.37 13.75Depreciation On Revaluation Of Assets

-- -- -- -- --

PBT 131.27 144.53 169.22 186.56 299.14Tax 10.57 12.37 21.12 25.01 51.02Net Profit 120.70 132.16 148.10 161.55 248.12Prior Years Income/Expenses 0.50 -- -- -- --Depreciation for Previous Years Written Back/ Provided

-- -- -- -- --

Equity Dividend Rate 350 375 411 401 408Earnings Per Share 21.38 5.85 6.56 6.29 8.05Book Value -- -- -- -- --Equity 22.58 22.58 22.58 25.70 30.82Reserves 53.57 88.32 127.91 511.22 796.65Face Value 4.00 1.00 1.00 1.00 1.00

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Profit and loss account (Godrej Consumer Products Ltd.)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06IncomeOperating income 1,274.20 1,095.87 891.92 760.85 655.62ExpensesMaterial consumed 567.56 627.65 422.80 372.13 307.72Manufacturing expenses 53.29 53.75 40.58 37.47 30.60Personnel expenses 120.94 58.44 54.60 40.50 43.15Selling expenses 216.95 145.52 136.04 115.67 99.47Adminstrative expenses 41.86 40.11 39.24 42.83 36.30Expenses capitalised - - - - -Cost of sales 1,000.60 925.47 693.27 608.59 517.24Operating profit 273.60 170.41 198.65 152.26 138.38Other recurring income 40.27 39.82 5.32 4.06 7.10Adjusted PBDIT 313.87 210.23 203.97 156.32 145.48Financial expenses 3.66 8.82 10.38 7.59 4.44Depreciation 13.75 14.37 15.70 12.49 10.78Other write offs - - - - -Adjusted PBT 296.46 187.04 177.89 136.24 130.25Tax charges 51.03 25.01 21.12 17.18 10.57Adjusted PAT 245.43 162.02 156.77 119.06 119.68Non recurring items 2.68 -1.11 -8.66 8.29 1.02Other non cash adjustments - 0.64 - 4.81 0.50Reported net profit 248.12 161.55 148.12 132.16 121.20Earnigs before appropriation 346.26 234.79 196.61 159.12 129.24Equity dividend 125.86 102.98 92.76 84.69 79.05Preference dividend - - - - -Dividend tax 21.39 17.50 15.76 12.72 11.09Retained earnings 199.02 114.30 88.09 61.72 39.11

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Balance sheet (Godrej Consumer Products Ltd.)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06Sources of fundsOwner's fundEquity share capital 30.82 25.70 22.58 22.58 22.58Share application money - - - - -Preference share capital - - - - -Reserves & surplus 796.65 511.22 127.91 88.32 53.57Loan fundsSecured loans 12.40 14.89 40.59 47.86 4.87Unsecured loans - 48.00 94.00 65.00 -Total 839.86 599.81 285.09 223.77 81.03Uses of fundsFixed assetsGross block 273.80 266.54 265.56 243.65 159.21Less : revaluation reserve - - - - -Less : accumulated depreciation 108.24 96.75 110.98 95.52 86.39Net block 165.56 169.79 154.58 148.13 72.82Capital work-in-progress 0.84 2.50 71.58 39.81 7.06Investments 521.88 97.89 77.61 71.79 50.01Net current assetsCurrent assets, loans & advances 552.75 607.24 263.74 195.68 122.32Less : current liabilities & provisions 401.16 277.61 285.28 231.64 171.19Total net current assets 151.59 329.64 -21.54 -35.96 -48.87Miscellaneous expenses not written - - 2.87 - -Total 839.86 599.81 285.09 223.77 81.03Notes:Book value of unquoted investments 521.88 97.89 77.61 71.79 50.01Market value of quoted investments - - - - -Contingent liabilities 79.41 45.42 48.93 67.99 55.64Number of equity sharesoutstanding (Lacs) 3081.90 2569.54 2258.44 2258.44 564.61

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Marico Ltd.

Yearly Results of Marico ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Sales Turnover 1,044.91 1,371.66 1,568.78 1,921.85 2,030.85Other Income 3.71 4.23 10.07 10.14 15.50Total Income 1,048.62 1,375.89 1,578.85 1,931.99 2,046.35Total Expenses 905.81 1,178.31 1,372.60 1,667.15 1,710.27Operating Profit 139.10 193.35 196.18 254.70 320.58Extraordinary Income/Expenses -- -- 1.24 -47.87 --Tax On Extraordinary Items -- -- -- -- --Net Extra Ordinary Income/Expenses -- -- -- -- --Gross Profit 142.81 197.58 206.25 264.84 336.08Interest 0.61 11.60 15.29 28.92 18.30PBDT 142.20 185.98 192.20 188.06 317.78Depreciation 33.23 35.19 18.93 17.03 25.21Depreciation On Revaluation Of Assets

-- -- -- -- --

PBT 108.97 150.79 173.27 171.03 292.57Tax 7.83 28.43 29.85 28.91 57.55Net Profit 101.14 122.36 143.42 142.12 235.02Prior Years Income/Expenses -2.28 -6.19 -- -- --Depreciation for Previous Years Written Back/ Provided

-- -- -- -- --

Equity Dividend Rate 1 1 1 1 1Earnings Per Share 62 64.13 65.50 65.50 65.99Book Value -- -- -- -- --Equity 58.00 60.90 60.90 60.90 60.93Reserves 219.36 122.60 219.34 306.82 510.75Face Value 10.00 1.00 1.00 1.00 1.00

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Profit and loss account ( Marico Ltd. )

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06IncomeOperating income 2,001.50 1,921.85 1,575.99 1,373.27 1,045.16ExpensesMaterial consumed 1,085.10 1,157.03 892.89 749.58 574.06Manufacturing expenses 81.52 78.80 68.74 61.08 45.84Personnel expenses 103.11 84.18 77.18 66.83 62.16Selling expenses 324.00 268.07 266.01 251.59 180.23Adminstrative expenses 74.75 64.37 62.11 55.03 48.02Expenses capitalised - - - - -Cost of sales 1,668.48 1,652.45 1,366.93 1,184.11 910.31Operating profit 333.02 269.40 209.06 189.16 134.85Other recurring income 15.39 10.06 6.73 9.93 5.94Adjusted PBDIT 348.41 279.46 215.79 199.09 140.79Financial expenses 18.30 28.92 19.75 20.01 5.02Depreciation 25.21 17.03 18.93 35.19 33.23Other write offs - - - - -Adjusted PBT 304.90 233.51 177.11 143.89 102.54Tax charges 57.55 52.37 29.86 28.43 7.83Adjusted PAT 247.35 181.14 147.25 115.46 94.71Non recurring items -4.79 -57.36 -3.84 -7.14 1.93Other non cash adjustments -7.54 18.32 - 7.84 2.22Reported net profit 235.02 142.10 143.41 116.16 98.86Earnigs before appropriation 468.12 293.98 212.89 307.52 242.25Equity dividend 40.21 39.89 39.89 39.06 35.96Preference dividend - - - 1.65 -Dividend tax 6.83 6.78 6.78 5.71 5.04Retained earnings 421.08 247.31 166.22 261.10 201.25

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Balance sheet ( Marico Ltd. )

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06Sources of fundsOwner's fundEquity share capital 60.93 60.90 60.90 60.90 58.00Share application money - - - - -Preference share capital - - - - -Reserves & surplus 510.73 306.78 219.33 122.59 219.36Loan fundsSecured loans 99.61 107.51 121.23 50.48 203.25Unsecured loans 277.31 201.02 184.36 116.77 20.26Total 948.58 676.21 585.82 350.74 500.87Uses of fundsFixed assetsGross block 294.45 262.16 228.89 213.87 402.11Less : revaluation reserve - - - - -Less : accumulated depreciation 164.48 146.25 131.90 118.81 112.56Net block 129.97 115.91 96.99 95.06 289.55Capital work-in-progress 109.96 45.61 49.10 8.97 18.97Investments 209.11 112.58 106.52 80.91 36.39Net current assetsCurrent assets, loans & advances 792.53 635.50 582.24 494.18 329.35Less : current liabilities & provisions 292.99 233.39 249.03 328.38 173.39Total net current assets 499.54 402.11 333.21 165.80 155.96Miscellaneous expenses not written - - - - -Total 948.58 676.21 585.82 350.74 500.87Notes:Book value of unquoted investments 198.04 112.58 106.52 80.91 36.39Market value of quoted investments 812.01 - - - -Contingent liabilities 167.90 26.32 21.04 16.18 16.78Number of equity sharesoutstanding (Lacs) 6093.26 6090.00 6090.00 6090.00 580.00

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Nestle India Ltd.

Yearly Results of Nestle India ------------------- in Rs. Cr. -------------------

Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

Sales Turnover 2,816.06 3,504.35 4,335.11 5,149.99 6,273.64Other Income 20.61 25.44 23.02 17.18 23.76Total Income 2,836.67 3,529.79 4,358.13 5,167.17 6,297.40Total Expenses 2,289.03 2,808.08 3,480.29 4,137.53 5,007.18Operating Profit 527.03 696.27 854.82 1,012.46 1,266.46Extraordinary Income/Expenses -0.39 -17.51 -- -- -16.29Tax On Extraordinary Items -- -- -- -- --Net Extra Ordinary Income/Expenses

-- -- -- -- --

Gross Profit 547.64 721.71 877.84 1,029.64 1,290.22Interest 0.44 0.85 12.66 1.40 1.07PBDT 546.81 703.35 865.18 1,028.24 1,272.86Depreciation 66.28 74.74 92.36 111.27 127.75Depreciation On Revaluation Of Assets

-- -- -- -- --

PBT 480.53 628.61 772.82 916.97 1,145.11Tax 165.43 214.80 238.74 261.97 326.45Net Profit 315.10 413.81 534.08 655.00 818.66Prior Years Income/Expenses -- -- -- -- --Depreciation for Previous Years Written Back/ Provided

-- -- -- -- --

Equity Dividend Rate 255 330 425 485 485Earnings Per Share 32.68 42.92 55.39 67.93 84.91Book Value -- -- -- -- --Equity 96.42 96.42 96.42 96.42 96.42Reserves 292.47 322.01 376.94 484.85 759.00Face Value 10.00 10.00 10.00 10.00 10.00

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Profit and loss account (Nestle India Ltd.)

Dec ' 10 Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06IncomeOperating income 6,260.21 5,141.90 4,328.65 3,500.96 2,819.16ExpensesMaterial consumed 3,084.51 2,472.64 2,122.74 1,692.53 1,334.79Manufacturing expenses 330.11 252.92 233.21 186.09 168.21Personnel expenses 433.44 432.38 314.58 269.44 216.16Selling expenses 623.14 516.55 449.40 340.20 278.33Adminstrative expenses 543.60 452.03 371.77 329.73 289.75Expenses capitalised - - - - -Cost of sales 5,014.80 4,126.52 3,491.70 2,817.99 2,287.24Operating profit 1,245.42 1,015.39 836.95 682.97 531.92Other recurring income 36.46 27.63 32.91 25.13 20.61Adjusted PBDIT 1,281.87 1,043.02 869.86 708.10 552.53Financial expenses 1.07 1.40 1.64 0.85 0.44Depreciation 127.75 111.27 92.36 74.74 66.28Other write offs - - - - -Adjusted PBT 1,153.04 930.35 775.86 632.50 485.80Tax charges 326.45 261.97 238.74 214.80 165.43Adjusted PAT 826.60 668.37 537.12 417.70 320.37Non recurring items -7.93 -13.37 -3.03 -3.89 -5.28Other non cash adjustments - - - - -Reported net profit 818.66 655.00 534.08 413.81 315.10Earnigs before appropriation 961.19 755.11 546.60 424.28 322.32Equity dividend 467.62 467.62 409.77 318.17 245.86Preference dividend - - - - -Dividend tax 77.20 79.47 69.64 52.21 34.48Retained earnings 416.37 208.02 67.19 53.90 41.98

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Balance sheet (Nestle India Ltd.)

Dec ' 10 Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06Sources of fundsOwner's fundEquity share capital 96.42 96.42 96.42 96.42 96.42Share application money - - - - -Preference share capital - - - - -Reserves & surplus 759.00 484.85 376.93 322.01 292.47Loan fundsSecured loans - - 0.82 2.87 16.27Unsecured loans - - - - -Total 855.41 581.27 474.17 421.30 405.16Uses of fundsFixed assetsGross block 1,854.70 1,640.79 1,404.85 1,179.77 1,058.27Less : revaluation reserve - - - - -Less : accumulated depreciation 841.96 744.59 651.85 577.96 516.48Net block 1,012.74 896.20 752.99 601.81 541.80Capital work-in-progress 348.91 79.63 109.17 73.70 38.24Investments 150.68 203.26 34.90 94.40 77.77Net current assetsCurrent assets, loans & advances 1,094.70 903.36 836.86 678.69 583.45Less : current liabilities & provisions 1,751.61 1,501.18 1,259.75 1,027.31 836.10Total net current assets -656.91 -597.82 -422.89 -348.61 -252.65Miscellaneous expenses not written - - - - -Total 855.41 581.27 474.17 421.30 405.16Notes:Book value of unquoted investments 150.68 203.26 34.90 94.40 77.77Market value of quoted investments - - - - -Contingent liabilities - 63.07 84.90 63.27 35.93Number of equity sharesoutstanding (Lacs) 964.16 964.16 964.16 964.16 964.16

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DABUR INDIA LTD.

FY MAR ‘06

Net Working Capital = Current Assets − Current Liabilities

Current assets = 285.68Current liabilities = 324.12

Net Working Capital = 285.68 – 324.44 = -38.44 cr

FY MAR ‘07

Net Working Capital = Current Assets − Current Liabilities

Current assets = 397.78Current liabilities = 379.27Net Working Capital = 397.78 – 379.27 = 18.52 cr

FY MAR ‘08

Net Working Capital = Current Assets − Current Liabilities

Current assets = 576.82Current liabilities = 610.57Net Working Capital = 576.82 – 610.57 = -33.75 cr

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FY MAR ‘09

Net Working Capital = Current Assets − Current Liabilities

Current assets = 973.77Current liabilities = 696.97Net Working Capital = 973.77 – 696.97 = 276.45 cr

FY MAR ‘10

Net Working Capital = Current Assets − Current Liabilities

Current assets = 941.77Current liabilities = 911.83Net Working Capital = 941.77 – 911.83 = 29.94 cr

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ITC INDIA LTD.

FY MAR ‘06

Net Working Capital = Current Assets − Current Liabilities

Current assets = 5,228.49Current liabilities = 4,125.99

Net Working Capital = 5,228.49 – 4,125.99 = 1,102.50cr

FY MAR ‘07

Net Working Capital = Current Assets − Current Liabilities

Current assets = 6,281.07Current liabilities = 4,585.85

Net Working Capital = 6,281.07 – 4,585.85 = 1,695.22 cr

FY MAR ‘08

Net Working Capital = Current Assets − Current Liabilities

Current assets = 7,306.99Current liabilities = 5,265.09

Net Working Capital = 7,306.99 – 5,265.09 = 2,041.90 cr

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FY MAR ‘09

Net Working Capital = Current Assets − Current Liabilities

Current assets = 8,450.99Current liabilities = 5,862.08

Net Working Capital = 8,450.99 – 5,862.08 = 2,588.91 cr

FY MAR ‘10

Net Working Capital = Current Assets − Current Liabilities

Current assets = 8,463.31Current liabilities = 9,169.48

Net Working Capital = 8,463.31 – 9,9169.48 = -706.17 cr

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GODREJ CONSUMER PRODUCTS LTD.

FY MAR ‘06

Net Working Capital = Current Assets − Current Liabilities

Current assets = 122.32Current liabilities = 171.19

Net Working Capital = 122.32 – 171.19 = -48.87 cr

FY MAR ‘07

Net Working Capital = Current Assets − Current Liabilities

Current assets = 195.68Current liabilities = 231.64

Net Working Capital = 195.68 – 231.64 = -35.96 cr

FY MAR ‘08

Net Working Capital = Current Assets − Current Liabilities

Current assets = 263.74Current liabilities = 285.28

Net Working Capital = 263.74 – 285.28 = -21.54 cr

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FY MAR ‘09

Net Working Capital = Current Assets − Current Liabilities

Current assets = 607.24Current liabilities = 277.61

Net Working Capital = 607.24 – 277.61 = 329.64 cr

FY MAR ‘10

Net Working Capital = Current Assets − Current Liabilities

Current assets = 552.75Current liabilities = 401.16

Net Working Capital = 552.75 – 401.16 = 151.59 cr

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MARICO LTD.

FY MAR ‘06

Net Working Capital = Current Assets − Current Liabilities

Current assets = 329.35Current liabilities = 173.39Net Working Capital = 329.35 – 173.39 = 155.96 cr

FY MAR ‘07

Net Working Capital = Current Assets − Current Liabilities

Current assets = 494.18Current liabilities = 328.38

Net Working Capital = 494.18 – 328.38 = 165.80 cr

FY MAR ‘08

Net Working Capital = Current Assets − Current Liabilities

Current assets = 582.24Current liabilities = 249.03

Net Working Capital = 582.24 – 249.03 = 333.21 cr

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FY MAR ‘09

Net Working Capital = Current Assets − Current Liabilities

Current assets = 635.50Current liabilities = 233.39

Net Working Capital = 635.50 – 233.39 = 402.11 cr

FY MAR ‘10

Net Working Capital = Current Assets − Current Liabilities

Current assets = 792.53Current liabilities = 292.99

Net Working Capital = 792.53 – 292.99 = 499.54 cr

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NESTLE INDIA LTD.

FY MAR ‘06

Net Working Capital = Current Assets − Current Liabilities

Current assets = 583.45Current liabilities = 836.10

Net Working Capital = 583.45 – 836.10 = -252.65 cr

FY MAR ‘07

Net Working Capital = Current Assets − Current Liabilities

Current assets = 678.69Current liabilities = 1,027.31

Net Working Capital = 678.69 – 1,027.31 = -348.61 cr

FY MAR ‘08

Net Working Capital = Current Assets − Current Liabilities

Current assets = 836.86Current liabilities = 1,259.75

Net Working Capital = 836.86 – 1,259.75 = -422.89 cr

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FY MAR ‘09

Net Working Capital = Current Assets − Current Liabilities

Current assets = 903.36Current liabilities = 1,501.18

Net Working Capital = 903.36 – 1,501.18 = -597.82 cr

FY MAR ‘10

Net Working Capital = Current Assets − Current Liabilities

Current assets = 1,094.70Current liabilities = 1,751.61

Net Working Capital = 1,094.70 – 1,751.61 = -656.91 cr

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CONCLUSION

Dabur India Ltd.Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short term debt and upcoming operational expenses.

An increase in working capital indicates that the business has either increased current assets or has decreased current liabilities.

It is clear from the above chart that Working Capital(%) of Dabur has increased in 2007 then there is a certain fall in 2008 and then an increase in 2009 and again a fall in 2010. The Working Capital is maximum in 2009.

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ITC Ltd.

It is clear from the above chart that Working Capital is constantly increasing from 2006 to 2009 and a sudden fall in 2010

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Godrej Consumer Products Ltd.

In the above chart, it is clear that in 2006 to 2008, the working capital is in negative and it has increased in 2009 and then decreased in 2010.

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Marico Ltd.

It is clear from the above chart that the working capital is constantly showing increase from 2006 to 2010.

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Nestle India Ltd.

It is clear from the above chart that the working capital is constantly showing decrease from 2006 to 2010.

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Years DABUR ITC GODREJ MARICO NESTLE

2006 -38.44 1102.50 -48.87 155.96 -252.65

2007 18.52 1695.22 -35.96 165.80 -348.61

2008 -33.75 2041.90 -21.54 333.21 -422.89

2009 276.45 2588.91 329.64 402.11 -597.82

2010 29.94 -706.17 151.59 499.54 -656.91

TOTAL 252.72 6722.36 374.86 1556.62 -2278.88

TABLE OF NET WORKING CAPITAL

(Rs in crores)

Hence, By the help of data analysis conducted on the results of major FMCG giants, it has been found that companies like ITC and Marico have higher net working capital as compared to other FMCG giants during 2006-2010 followed by Godrej, Dabur and Nestle. So, on the basis of above Table , a ranking scale is developed by which the ranks are assigned to the companies on the basis of their net working capital as:-

RANK COMPANIESRANK – 1 ITC LTD.RANK – 2 MARICO LTD.RANK – 3 GODREJ CONSUMER PRODUCTS LTD.RANK – 4 DABUR INDIA LTD.RANK – 5 NESTLE INDIA LTD.

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BIBLIOGRAPHY

WWW.DABUR.COM

WWW.ITC.COM

WWW.MARICO.COM

WWW.NESTLE.COM

WWW.GODREJCP.COM

WWW.MONEYCONTROL.COM

WWW.GOOGLE.COM

WWW.MONEY.REDIFF.COM