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Company Information

Home » Market » Company Information

Dabur India Ltd.

Aug 23, 03:45
424.30 -3.65 ( -0.85 %)
 
VOLUME : 57711
Prev. Close 427.95
Open Price 428.00
TODAY'S LOW / HIGH
423.00
 
 
 
429.35
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 424.45 (3)
52 WK LOW / HIGH
357.10
 
 
 
490.70
Aug 23, 03:53
424.40 -3.10 ( -0.73 %)
 
VOLUME : 1681100
Prev. Close 427.50
Open Price 426.00
TODAY'S LOW / HIGH
422.85
 
 
 
429.65
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 424.40 (487)
52 WK LOW / HIGH
357.55
 
 
 
490.65
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Market Cap. ( ₹ ) 74993.84 Cr. P/BV 13.32 Book Value ( ₹ ) 31.87
52 Week High/Low ( ₹ ) 491/358 FV/ML 1/1 P/E(X) 52.00
Bookclosure 16/08/2019 TTM EPS ( ₹ ) 8.35 Div Yield (%) 0.65
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2019-03 

55. Details of hedged and unhedged exposure in foreign currency denominated monetary items

A Exposure in foreign currency - hedged

The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

Outstanding overseas exposure hedged by forward option/ contract against adverse currency fluctuation:

Particulars

Period

Foreign currency

Local currency

Packing credit loan *

31 March, 2019

USD

0.80

INR

55.32

31 March, 2018

USD

0.70

INR

45.62

* The nature of risk hedged is adverse currency fluctuations B Exposure in foreign currency - unhedged

Outstanding overseas exposure not being hedged against adverse currency fluctuation:

Particulars

Period

Foreign currency

Local currency

Export receivables

31 March, 2019

EUR

0.00

INR

0.16

31 March, 2018

EUR

0.02

INR

1.39

31 March, 2019

USD

0.55

INR

37.77

31 March, 2018

USD

0.66

INR

43.14

31 March, 2019

AUD

0.00

INR

0.00

31 March, 2018

AUD

-

INR

-

Overseas creditors

31 March, 2019

USD

0.10

INR

7.16

31 March, 2018

USD

0.15

INR

9.54

31 March, 2019

EURO

0.00

INR

0.00

31 March, 2018

EURO

0.00

INR

0.00

31 March, 2019

SGD

0.00

INR

0.01

31 March, 2018

SGD

-

INR

-

31 March, 2019

AUD

0.00

INR

0.01

31 March, 2018

AUD

-

INR

-

Advances to suppliers

31 March, 2019

USD

0.03

INR

1.86

31 March, 2018

USD

0.06

INR

3.66

Bank balances in exchange earner

31 March, 2019

USD

0.13

INR

8.75

foreign currency (EEFC) account

31 March, 2018

USD

0.01

INR

0.52

Advance from customers

31 March, 2019

USD

0.02

INR

1.53

31 March, 2018

USD

0.03

INR

2.00

56. Capital management - policies and procedures

For the purpose of the Company's capital management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.

The Company' s capital management objectives are:

• to ensure the Company's ability to continue as a going concern

• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations, if any.

Particulars

31 March, 2019

31 March, 2018

Non-current borrowings (refer note 22)

26.05

201.04

Other financial liability (refer note 23 and 28)

269.39

85.85

Current borrowings (refer note 26)

108.72

85.49

Trade payables (refer note 27)

998.32

960.62

Less: Cash and cash equivalents (refer note 1 5)

(23.16)

(77.67)

Net debt

1,379.32

1,255.33

Equity share capital (refer note 20)

176.63

176.15

Other equity (refer note 21)

3,792.19

4,050.71

Total capital

3,968.82

4,226.86

Capital and net debt

5,348.13

5,482.19

Gearing ratio

25.79%

22.90%

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2019 and 31 March, 2018.

Loan covenants

Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants which include Debt Service Coverage Ratio (DSCR), Fixed Asset Coverage Ratio (FACR) etc. The Company has complied with these covenants throughout the reporting period.

57. Financial risk management - objectives and policies

The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company's financial assets comprise mainly investments, loans, trade receivables, cash and cash equivalents, other balances with banks and other receivables.

The Company's financial risk management is an integral part of how to plan and execute its business strategies.

The Company's activities expose it to market risk, interest rate risk and foreign currency risk. The Board of Directors ('Board') oversee the management of these financial risks through its Risk Management Committee. The risk management policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Company's approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company's management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company's financial performance.

The following disclosures summarize the Company's exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.

A Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a Risk Management Committee engaged in, inter alia, evaluation and identification of risk factors with the object of governing/mitigating them according to Company's objectives and declared policies in specific

context of impact thereof on various segments of financial instruments. The Board provides oversight and reviews the risk management policy on a quarterly basis.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to balance the Company's position with regards to interest income and interest expense and to manage the interest rate risk, treasury performs comprehensive interest rate risk management. The Company is not exposed to significant interest rate risk as at the respective reporting dates.

ii) Foreign currency risk

The Company operates internationally with transactions entered into several currencies. Consequently the Company is exposed to foreign exchange risk towards honouring of export / import commitments.

Management evaluates exchange rate exposure in this connection in terms of its established risk management policies which includes the use of derivatives like foreign exchange forward contracts to hedge risk of exposure in foreign currency.

The carrying amounts of the Company's foreign currency denominated monetary items are as follows:

Particulars

USD

EUR

AUD

SGD

Total

Foreign currency exposure as at 31 March, 2019

Export receivables

37.77

0.16

0.00

-

37.93

Overseas creditors

7.16

0.00

0.01

0.01

7.18

Advance to supplier

1.86

-

-

-

1.86

Advance from customers

1.53

-

-

-

1.53

Bank balances in exchange earner foreign currency (EEFC) account

8.75

-

-

-

8.75

Packing credit loan (hedged through future contract)

55.32

-

-

-

55.32

Foreign currency exposure as at 31 March, 2018

Export receivables

43.14

1.39

-

-

44.53

Overseas creditors

9.54

0.00

-

-

9.54

Advance to supplier

3.66

-

-

-

3.66

Advance from customers

2.00

-

-

-

2.00

Bank balances in exchange earner foreign currency (EEFC) account

0.52

-

-

-

0.52

Packing credit loan (hedged through future contract)

45.62

-

-

-

45.62

The above table represents total exposure of the Company towards foreign exchange denominated assets and liabilities. The details of exposures hedged using forward exchange contracts are given as a part of note 55 A and the details of unhedged exposures are given as part of note 55 B.

Foreign currency sensitivity

The below table demonstrates the sensitivity to a 1% increase or decrease in the foreign currencies against Rs., with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 1% represents management's assessment of reasonably possible change in foreign exchange rate. 1% increase or decrease in foreign exchange rates will have the following impact on profit before tax:

Change in foreign exchange rates

31 March, 2019

31 March, 2018

1 % increase

1% decrease

1% increase

1% decrease

USD

0.40

(0.40)

0.36

(0.36)

EUR

0.00

(0.00)

0.01

(0.01)

AUD

(0.00)

0.00

-

-

SGD

0.00

(0.00)

-

-

Increase / (Decrease) in profit or loss

0.40

(0.40)

0.37

(0.37)

iii) Price risk

The Company's exposure to price risk arises from investments held and classified as FVTPL or FVOCI. To manage the price risk arising from investments, the Company diversifies its portfolio of assets.

Sensitivity analysis

Profit or loss and equity is sensitive to higher / lower prices of instruments on the Company's profit for the year:

Particulars

31 March, 2019

31 March, 2018

Price sensitivity

Price increase by (5%)- FVOCI

46.98

52.58

Price decrease by (5%- FVOCI

(46.98)

(52.58)

Price increase by (5%)- FVTPL

3.68

25.36

Price decrease by (5%- FVTPL

(3.68)

(25.36)

B Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivables. Individual risk limits are also set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward-looking information.

Financial assets are written-off when there is no reasonable expectation of recovery, such as debtor failing to engage in a repayment plan with the Company. The Company provides for overdue outstanding for more than 90 days other than institutional customers which are evaluated on a case to case basis. The Company's concentration of risk with respect to trade receivables is low, as its customer's base is widely spread across the length and breadth of the country.

Exposure to credit risks

31 March, 2019

31 March, 2018

Financial assets for which loss allowance is measured using 12 months Expected

Credit Losses (ECL) Non-current investments

2,236.74

2,719.67

Non-current loans

13.14

15.43

Other non-current financial assets

77.64

4.09

Current investments

725.40

713.39

Cash and cash equivalents Bank balances other than cash and cash equivalents above Current loans

23.16 101.55 4.56

77.67 9.351.41

Other current financial assets

14.12

4.06

Financial assets for which loss allowance is measured using Life time Expected

Credit Losses (LECL) Trade receivables

431.46

321.34

Summary of change in loss allowances measured using LECL

Opening allowance

8.98

9.28

Provided during the year

0.06

1.09

Amounts written-off

0.53

1.39

Closing allowance

8.51

8.98

During the year, the Company has recognised loss allowance of Rs. 1.97 (31 March, 201 8 : Rs. 1.25 crores) under 1 2 month ECL model. No significant changes in estimation techniques or assumptions were made during the reporting period.

Concentration of financial assets

Concentration of credit risk with respect to trade receivables are limited, due to the Company's customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. The Company's exposure to credit risk for trade receivables is presented below:

A. Consumer care business

354.73

260.74

B. Food business

69.21

53.99

C. Other segments

6.14

5.29

D. Unallocated

1.38

1.32

C Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company's treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior management. Management monitors the Company's net liquidity position on the basis of expected cash flows vis-a-vis debt service fulfilment obligation.

Maturity profile of financial liabilities

The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows:

Particulars

Less than 1 year/ on demand

1 to 5 years

More than 5 years

Total

As at 31 March, 2019

Finance lease obligations

0.10

0.44

6.97

7.51

Deposits payable

1.27

4.56

-

5.83

Non-current borrowings (including current maturities)

175.00

25.00

-

200.00

Current borrowings

108.72

-

-

108.72

Trade payables

998.32

-

-

998.32

Other financial liabilities (excluding current maturity of

88.47

-

-

88.47

finance lease obligation and deposits payable)

As at 31 March, 2018

Finance lease obligations

0.09

0.43

7.08

7.60

Deposits payable

1.45

4.27

-

5.72

Non-current borrowings (including current maturities)

-

200.00

-

200.00

Current borrowings

85.49

-

-

85.49

Trade payables

960.62

-

-

960.62

Other financial liabilities (excluding current maturity of finance lease obligation and deposits payable)

80.11

-

-

80.11

58. Category wise classification of financial instruments

The fair values of the financial assets and financial liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the financial year 2018-19. The following methods and assumptions were used to estimate the fair values:

i) The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

ii) The fair values of other investments measured at FVTOCI and FVTPL are determined based on observable market data other than quoted prices in active market.

iii) The carrying amount of financial assets and financial liabilities measured at amortised cost in these financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Financial assets and financial liabilities are measured at fair value in these financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: unobservable inputs for the asset or liability

A The carrying values and fair values of financial instruments by categories as at 31 March, 2019 are as follows:'

Particulars

Carrying value

Fair value

Level 1

Level 2

Level 3

Financial assets at fair value through profit and loss ('FVTPL')

Investments in mutual funds

73.59

73.59

-

-

Total

73.59

73.59

-

-

Financial assets at fair value through other comprehensive income ('FVTOCI')

Investments in debt instruments

939.61

-

939.61

-

Investments in equity instruments

0.07

-

-

0.07

Total

939.68

-

939.61

0.07

Financial assets at amortised cost

Non-current

(i) Investments

Investments in debt instruments

1,198.39

Investments in subsidiaries and joint venture

98.67

(ii) Loans

Security deposits

13.14

(iii) Other financial assets

77.64

Total

1,387.84

Current

(i) Investments

Investments in debt instruments

651.81

(ii) Loans

Security deposits

4.56

(iii) Trade receivables

431.46

(iv) Cash and cash equivalents

23.16

(v) Bank balances other than (iv) above

101.55

(vi) Other financial assets

14.12

Sub-Total

1,226.66

Total

2,614.50

Financial liabilities at amortised cost

Non-current

(i) Borrowings

26.05

(ii) Other financial liabilities

4.56

Total

30.61

Current

(i) Borrowings

108.72

(ii) Trade payables

998.32

(iii) Other financial liabilities

264.83

Sub-Total

1,371.87

Total

1,402.48

* During the year, there were no transfers between Level 1 and Level 2 fair value measurements.

B The carrying values and fair values of financial instruments by categories as at 31 March, 2018 are as follows:'

Particulars

Carrying value

Fair value

Level 1

Level 2

Level 3

Financial assets at fair value through profit and loss ('FVTPL')

Investments in debt instruments

254.97

-

254.97

-

Investments in mutual funds

252.14

252.14

-

Total

507.11

252.14

254.97

-

Financial assets at fair value through other comprehensive income ('FVTOCI')

Investments in debt instruments

1,051.41

-

1,051.41

-

Investments in equity instruments

0.07

-

-

0.07

Total

1,051.48

-

1,051.41

0.07

Financial assets at amortised cost

Non-current

(i) Investments

Investments in debt instruments

1,569.52

Investments in subsidiaries and joint venture

98.67

(ii) Loans

Security deposits

15.43

(iii) Other financial assets

4.09

Total

1,687.71

Current

(i) Investments

Investments in debt instruments

206.28

(ii) Loans

Security deposits

1.41

(iii) Trade receivables

321.34

(iv) Cash and cash equivalents

77.67

(v) Bank balances other than (iv) above

9.35

(vi) Other financial assets

4.06

Sub-Total

620.11

Total

2,307.82

Financial liabilities at amortised cost

Non-current

(i) Borrowings

201.04

(ii) Other financial liabilities

4.25

Total

205.29

Current

(i) Borrowings

85.49

(ii) Trade payables

960.62

(iii) Other financial liabilities

81.60

Sub-Total

1,127.71

Total

1,333.00

* During the year, there were no transfers between Level 1 and Level 2 fair value measurements.

C Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

(a) Investment in mutual funds: The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.

(b) Investment in debt instruments: The fair value of investments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.

59. Disclosure relating to employee benefits pursuant to Ind AS 19 - Employee Benefits

(A) Defined contribution plans

Amount of Rs. 4.03 crores (31 March, 2018 : Rs. 3.80 crores) is recognised as an expense and included in employee benefits expense in the Standalone Statement of Profit and Loss under Employees' Superannuation Fund.

(B) Defined benefit plans Gratuity (funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payments to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 1 5 days salary for each completed year of service. Vesting occurs on completion of 5 continuous years of service as per Payment of Gratuity Act, 1972. However, no vesting condition applies in case of death. The weighted average duration of defined benefit obligation is 7.06 years (31 March, 201 8 : 7.06 years).The Company makes contributions to Dabur Employees' Gratuity Trust, which is funded defined benefit plan for qualifying employees.

Post separation benefit of Directors

Post separation benefit of Directors includes car, telephone, medical and housing facility for eligible Directors. Description of risk exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follows:

a) Salary increases - Actual salary increases will increase the plan's liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) Investment risk - If plan is funded then assets/liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

c) Discount rate - Reduction in discount rate in subsequent valuations can increase the plan's liability.

d) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact plan's liability.

The following tables summarises the components of net benefit expense recognized in the Standalone Statement of Profit and Loss and the funded status and amounts recognized in the Standalone Balance Sheet:

Particulars

Gratuity

Post separation benefit of Directors

31 March, 2019

31 March, 2018

31 March, 2019

31 March, 2018

Funded

Funded

Unfunded

Unfunded

I Change in present value of defined benefit obligation during the year

Present value of obligation as at the beginning of the period

61.75

55.41

50.47

47.86

Interest cost

4.94

4.16

4.04

3.59

Service cost

6.10

5.43

1.37

1.32

Benefits paid

(4.31)

(4.29)

(0.87)

(0.42)

Total actuarial (gain)/loss on obligation

0.50

1.04

(1.82)

(1.88)

Present value of obligation as at the end of the period

68.98

61.75

53.19

50.47

II Change in fair value of plan assets during the year

Fair value of plan assets at the beginning of the period

59.30

55.53

-

-

Expected interest income

4.74

4.16

-

-

Employer contribution

7.00

5.50

-

-

Benefits paid

(4.31)

(4.29)

-

-

Actuarial gain / (loss) for the year on asset

(0.28)

(1.62)

-

-

Fair value of plan assets at the end of the period

66.45

59.30

-

-

III Net asset / (liability) recognised in the Standalone Balance Sheet

Present value of obligation at the end

68.98

61.75

53.19

50.47

Fair value of plan assets

66.45

59.30

-

-

Unfunded (liability) / assets in Standalone Balance Sheet

(2.53)

(2.45)

(53.19)

(50.47)

IV Expense recognised in the Standalone Statement of Profit and Loss during the year

Service cost

6.10

5.43

1.37

1.32

Net interest cost

0.20

(0.01)

4.04

3.59

Total expense recognised in the employee benefit expense

6.30

5.42

5.41

4.91

V Recognised in other comprehensive income for the year

Net cumulative unrecognised actuarial gain / (loss) opening

(2.64)

0.02

5.69

3.80

Actuarial (gain) / loss for the year on projected benefit obligation (PBO)

0.50

1.04

(1.82)

(1.88)

Actuarial gain / (loss) for the year on asset

(0.28)

(1.62)

-

-

Unrecognised actuarial gain / (loss) at the end of the year

(3.42)

(2.64)

7.51

5.69

VI Maturity profile of defined benefit obligation

Within the next 12 months (next annual reporting period)

16.44

14.95

0.53

0.43

Between 2 to 5 years

16.52

15.40

32.37

30.47

More than 5 years

36.02

31.40

20.29

19.57

VII Quantitative sensitivity analysis for significant assumptions is as below

a) Impact of change in discount rate

Present value of obligation at the end of the period

68.98

61.74

53.19

50.47

Impact due to increase of 0.50%

(1.86)

(1.67)

(0.24)

(0.24)

Impact due to decrease of 0.50%

1.97

1.77

0.25

0.25

b) Impact of change in salary increase

Present value of obligation at the end of the period

68.98

61.74

53.19

50.47

Impact due to increase of 0.50%

1.92

1.73

0.23

0.22

Impact due to decrease of 0.50%

(1.83)

(1.65)

(0.22)

(0.22)

Sensitivities due to mortality and withdrawals are not material, hence the impact of change not calculated. Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable being a lumpsum benefit on retirement.

VIII The major categories of plan assets (as a percentage of total plan assets)

Funds managed by insurer

1 00%

1 00%

N.A

N.A

IX Actuarial assumptions

i) Discount rate

7.80 % PA

8.00 % PA

7.80 % PA

8.00 % PA

ii) Future salary increase

10.00 % PA

10.00 % PA

1 2.00 % PA

1 2.00 % PA

iii) Retirement age (years)

58

58

60/70

60/70

iv) Mortality rates inclusive of provision for disability

100% of IALM (2006-08)

1 00% of IALM (2006-08)

v) Age

Withdrawal rate

Withdrawal rate

Withdrawal rate

Withdrawal rate

Upto 30 years

17

17

Nil

Nil

From 31 to 44 years

14

14

Nil

Nil

Above 44 years

5

5

Nil

Nil

vi) Expected best estimate of expense for the next annual reporting period

Service cost

6.34

5.57

1.31

1.30

Net interest cost

0.20

0.20

4.15

4.04

Net periodic benefit cost

6.54

5.77

5.46

5.34

Notes:

(i) The actuarial valuation of plan assets and the present valuation of defined benefit obligation were computed at year end. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

(ii) Discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligations.

(iii)The salary escalation rate is computed after considering the seniority, the promotion and other relevant factors, such as, demand and supply in employment market.

(C) Provident fund

The Company makes contribution towards provident fund which is administered by Dabur India Limited E.P.F Trust. The rules of the Company's provident fund administered by a trust, requires that if the trust is unable to pay interest at the rate declared by the government under Para 60 of the Employees' Provident Funds Scheme, 1 972 for the reason that the return on investments is less or for any other reason, then the deficiency shall be made good by the Company making interest shortfall. Accordingly, the Company has obtained actuarial valuation and based on the below provided assumption there is no deficiency as at the balance sheet date. Hence, the liability is restricted towards monthly contribution only. Contribution made by the Company to the provident fund trust set-up by the Company during the year is Rs. 10.18 Crores (31 March, 2018 :Rs. 9.04 crores).

Particulars

31 March, 2019

31 March, 2018

Plan assets at period end, at fair value

301.70

257.49

Present value of defined obligation at period end

285.18

240.54

Assumptions used in determining the present value of obligation:

I Economic assumptions (actuarial)

i) Expected statutory interest rate on the ledger balance

8.65%

8.55%

ii) Expected short fall in interest earnings on the fund

0.05%

0.05%

II Demographic assumptions (actuarial)

i) Mortality

IALM (2006 -08)

IALM (2006 - 08)

ii) Disability

None

None

iii) Withdrawal Rate (Age related)

Up to 30 Years

17%

17%

Between 31-44 Years

14%

14%

Above 44 Years

5%

5%

iv) Normal retirement age

58

58

60. Disclosures required pursuant to Ind AS 102 - Share Based Payment

Under Employee Stock Option Scheme (ESOP) of the Company, share options of the Company are granted to the senior executives subject to achievement of targets as defined in ongoing vision of the Company. Vesting period ranges from 1 to 5 years. Each option carries the right to the holder to apply for one equity share of the Company at par. There has been no variation in the terms of options during the year. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.

A The following table illustrates the number and weighted average exercise prices of, and movements in, share options during the year:

Particulars

Weighted Average Price (Rs.)

Number of options

Outstanding as at 1 April, 2017

1.80

87,98,312

Options granted during the year

1.00

36,720

Options forfeited/lapsed/expired during the year

1.00

38,63,411

Options exercised during the year

-

-

Options outstanding as at 31 March, 2018

2.42

49,71,621

Exercisable at the end of the period.

-

49,71,621

Particulars

Weighted Average Price (Rs)

Number of options

Outstanding as at 1 April, 2018

2.42

49,71,621

Options granted during the year

1.00

67,44,864

Options forfeited/lapsed/expired during the year

22.14

3,47,912

Options exercised during the year*

1.00

47,70,631

Options outstanding as at 31 March, 2019 #

1.00

65,97,942

Exercisable at the end of the period.

-

65,97,942

* 47,70,631 Share options were exercised on a regular basis throughout the year. The weighted average share price during the period was Rs.1.00 (31 March, 201 8 : Nil).

# The options outstanding as at 31 March, 2019 are with the exercise price of Rs. 1.00 (31 March, 2018 :? 1.00 to 84.60) . The weighted average of the remaining contractual life is 3.40 years (31 March, 2018 : 0.1 2 years).

B Fair value of the options has been calculated using Black Scholes Pricing Model. The following inputs were used to determine the fair value for options granted during the year:

Particulars

Vest 1

Vest 2

Vest 3

Vest 4

i) Date of grant: 19 April, 2018

15- May- 19

15-May-20

15-May-21

15-May-22

Market price (?)

358.35

358.35

358.35

358.35

Expected life (in years)

1.07

2.07

3.07

4.07

Volatility (%)

19.08

21.06

22.65

23.48

Risk free rate (%)

6.49

6.90

7.19

7.40

Exercise price (?)

1.00

1.00

1.00

1.00

Dividend yield (%)

0.63

0.63

0.63

0.63

Fair value per vest (?)

355.01

352.84

350.68

348.54

Vest (% )

7.57

18.09

8.00

66.34

Option fair value (?)

349.98

349.98

349.98

349.98

ii) Date of grant: 31 July, 2018

31-Jul-19

15-May-20

15-May-21

15-May-22

Market price (?)

393.45

393.45

393.45

393.45

Expected life (in years)

1.00

1.79

2.79

3.79

Volatility (%)

20.54

20.17

21.74

23.41

Risk free rate (%)

6.92

7.36

7.63

7.80

Exercise price (?)

1.00

1.00

1.00

1.00

Dividend yield (%)

1.91

1.91

1.91

1.91

Fair value per vest (?)

385.07

379.35

372.22

365.23

Vest (% )

6.24

6.24

6.24

81.28

Option fair value (?)

367.79

367.79

367.79

367.79

iii) Date of grant: 29 November, 2018

30-Nov-19

15-May-20

15-May-21

15-May-22

Market price (?)

414.80

414.80

414.80

414.80

Expected life (in years)

1.00

1.46

2.46

3.46

Volatility (%)

25.86

24.25

22.81

24.04

Risk free rate (%)

6.90

7.02

7.21

7.35

Exercise price (?)

1.00

1.00

1.00

1.00

Dividend yield (%)

1.81

1.81

1.81

1.81

Fair value per vest (?)

406.43

403.08

395.90

388.84

Vest (%)

6.25

6.25

6.25

81.25

Option fair value (?)

391.27

391.27

391.27

391.27

Fair value of the options has been calculated using Black Scholes Pricing Model. The following inputs were used to determine the fair value for options granted during year ended 31 March, 2018:

i) Date of grant: 21 April, 2017

Vesting Date: 15 May, 2018

Market price (?)

291.25

Expected life (in years)

1.07

Volatility (%)

22.55

Risk free rate (%)

6.26

Exercise price (?)

1.00

Dividend yield (%)

0.77

Fair value per vest (?)

287.93

Vest (%)

100.00

Option fair value (?)

287.93

ii) Date of grant: 4 August, 2017

Vesting Date: 4 August, 2018

Market price (?)

307.30

Expected life (in years)

1.00

Volatility (%)

19.90

Risk free rate (%)

6.05

Exercise price (?)

1.00

Dividend yield (%)

0.73

Fair value per vest (?)

304.12

Vest (%)

100.00

Option fair value (?)

304.12

iii) Date of grant: 31 October, 2017

Vesting Date: 31 October, 2018

Market price (?)

332.85

Expected life (in years)

1.00

Volatility (%)

20.09

Risk free rate (%)

6.15

Exercise price (?)

1.00

Dividend yield (%)

0.67

Fair value per vest (?)

329.69

Vest (%)

100.00

Option fair value (?)

329.69

The measure of volatility used is the annualized standard deviation of the continuously compounded rates of return of stock over the expected lives of different vests, prior to grant date. Volatility has been calculated based on the daily closing market price of the Company's stock on NSE over these years.

61. The figures of the previous year have been re-grouped / re-classified to render them comparable with the figures of the current year.

62. In the opinion of the Board of Directors, current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known / expected liabilities have been made.

As per our report of even date attached.

For Walker Chandiok & Co LLP

For and on behalf of the Board of Directors

Chartered Accountants

Firm's Registration No.: 001076N/N500013

Anupam Kumar

Dr. Anand Chand Burman

Mohit Malhotra

P.D. Narang

Partner

Chairman

Whole Time Director

Whole Time Director

Membership No.:501531

DIN: 00056216

DIN: 08346826

DIN: 00021581

Ashok Kumar Jain

Lalit Malik

Place : New Delhi

EVP (Finance) and Company Secretary

Chief Financial Officer

Date : May 2, 2019

M. No.: FCS431 1