MIRA INFORM REPORT

Report Date :

11.04.2007

IDENTIFICATION DETAILS

Name :	DABUR INDIA LIMITED
Formerly Known As :	DABUR (DR. S. K. BURMAN) PRIVATE LIMITED
Registered Office :	8/3, Asaf Ali Road, New Delhi - 110 002
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	13.10.1986
Com. Reg. No.:	55-7908
CIN No.: [Company Identification No.]	L24230DL1975PLC007908
TAN No.: [Tax Deduction & Collection Account No.]	DELD01285E
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of herbal healthcare and personal care, food, pharmaceuticals, ayurvedic medicines, veterinary products and cosmetics.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 17500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a very old and well-established company having satisfactory track. The company’s products are well known in the market. Directors are reported as experienced, respectable and resourceful businessmen. Payments are usually correct and as per commitments. Trade relations are fair. The company’s business dealings can be considered normal against usual trade terms and conditions.

LOCATIONS

Registered Office :	8/3, Asaf Ali Road, New Delhi - 110 002, India
Tel. No.:	91-11-23329021 (4 Lines)/23253488
Fax No.:	91-11-23289142/23320613/23276739
E-Mail :	info@dabur.com
Website :	http://www.dabur.com
Corporate Office :	Kaushmbi, Sahibabad – 201 010, Ghaziabad, Uttar Pradesh
Tel. No.:	91-120-24777901/25/24778501/25
Fax No.:	91-120-24777938
Website :	http://www.dabur.com
Factory :	SAHIBABAD Unit I & II 22, Site IV, Industrial Area, Sahibabad, Ghaziabad, Uttar Pradesh Tel. No. 91-120-24777901-25 Fax No. 91-120-24777816-17 Unit III Plot No. 5/1, Site – IV, Sahibabad – 201 010, Ghaziabad, Uttar Pradesh Tel. No. 91-120-24777901-25 Fax No. 91-120-24772407 chyawanprash unit 220-221, HPSIDC Industrial Area, Baddi – 173 205, District Solan, Himachal Pradesh Tel. 91-1795-245273 Fax. 91-1795-244090 hajmola unit 102, HPSIDC Industrial Area, Baddi – 173 205, District Solan, Himachal Pradesh Tel. 91-1795-245273 Fax. 91-1795-244090 MSY unit Village Billanwali Lavana, Baddi, District Solan, Himachal Pradesh Tel. 91-1795-245273 Fax. 91-1795-244090 Amla/honey unit Village Billanwali Lavana, Baddi, District Solan, Himachal Pradesh Tel. 91-1795-245273 Fax. 91-1795-244090 Glucose unit Plot No. 12, Industrial Area, Baddi, District Solan, Himachal Pradesh Tel. 91-1795-245273 Fax. 91-1795-244090 shampoo unit Village Billanwali Lavana, Baddi, District Solan, Himachal Pradesh Tel. 91-1795-245273 Fax. 91-1795-244090 9, Netaji Subhash Chandra Bose Road, Narendrapur - 743 508, District 24 Parganas, West Bengal Tel. 91-33-24772324 SPC 162, Matsya Industrial Area, Alwar – 301 030, Rajasthan Tel. 91-144-2881217 P. O. Daburgram, District Deoghar – 814 132, Jharkhand, Bihar Tel. 91-6432-232101-103 10.4, Mile Stone, Village Padia, Katni, Madhya Pradesh Tel. 91-7622-262317 Lane No. 3, Phase II, SIDCO Industrial Complex, Bari Brahmna, Jammu Tel. 91-192-23220123 Plot No. 4, Sector 2, Integrated Industrial Estate, Rudrapur, District Udham Singh Nagar, Uttaranchal injectable unit 19, HPSIDC Industrial Area, Baddi – 173 205, District Solan, Himachal Pradesh, INDIA D-35, Industrial Area, Kalyani, District Nadia – 741 235, West Bengal
Sales and Marketing Office:	3, Factory Road, Adjacent Safdarjung Hospital, Ring Road, New Delhi – 110 029, India

DIRECTORS

Name :	Mr. Vivek Chand Burman
Designation :	Chairman
Name :	Dr. Anand. C. Burman
Designation :	Vice Chairman
Name :	Mr. Pradip Burman
Designation :	Director
Name :	Mr. Amit Burman
Designation :	Non Executive Director
Name :	Mr. P. D. Narang
Designation :	Director
Name :	Mr. Sunil Duggal
Designation :	Director & Chief Executive Off
Name :	Mr. H H Maharaja Gaj Singh
Designation :	Director
Name :	Mr. P N Vijay
Designation :	Director
Name :	Mr. Stuart Edward Purdy
Designation :	Director
Name :	Mr. R C Bhargava
Designation :	Director
Name :	Mr. S Narayan
Designation :	Director
Name :	Mr. Mohit Burman
Designation :	Whole-time Director
Name :	Mr. Ashok Kumar Jain
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31^st march 2007

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group
Indian
Individuals/Hindu Undivided Family	978000	0.11 %
Bodies Corporate	635581973	73.66 %
Foreign
Individuals(Non-Residents Individuals)	282000	0.03 %
Public Shareholding
Institutions
Mutual Funds/UTI	4662537	0.54 %
Financial Institutions/Banks	1124667	0.13 %
Insurance Companies	48579426	5.63 %
Foreign Institutional Investors	90264228	10.46 %
Non-Institutions
Bodies Corporate	10056512	1.17 %
Individual shareholders holding nominal share capital upto Rs.0.1 Millions	59132766	6.85 %
Individual shareholders holding nominal share capital in excess of Rs.0.1 Millions	7001802	0.81 %
NRI	5219897	0.60 %
Total	862883808	100.00 %

BUSINESS DETAILS

Line of Business :

Manufacturing of herbal healthcare and personal care, food, pharmaceuticals, ayurvedic medicines, veterinary products and cosmetics.

Products :

Item Code No. (ITC Code)	Product Description
30049001	Ayurvedic Medicines
33059001	Hair Oils
33061000	Dentifrices

Brand Names :

Dabur Amla

Dabur Chyawanprash

Dabur Vatika

Dabur Hajmola

Dabur Lal Dant Manjan

Dabur Lal Tel

Dabur Pudin Hara and Real

Exports :

Countries :

Africa, Canada, Europe, Middle East, North America, South East Asia and USA [Personal Care Products and Health Care Products]

GENERAL INFORMATION

Customers :	Ø Burman Laboratories Limited Ø Maxcare Laboratories Limited Ø Green Valley Products Private Limited Ø V P Poly Udyog Ø Dynamic Sticker Industries Ø Packwel Plastics Private Limited Ø Stellar Packaging Private Limited Ø Sharda Containers Private Limited Ø Classic Bottle Caps Private Limited Ø P S Press Services Private Limited Ø M C Packaging Private Limited Ø Print & Publicity Private Limited Ø Ace Print & Pack Private Limited Ø V M Packaging & Home Appliances Private Limited Ø Sea-shell Chemicals Private Limited
No. of Employees :	2130
Bankers :	Ø Punjab National Bank, New Delhi, India Ø Standard Chartered Grindlays Bank Limited, New Delhi, India Ø American Express Bank Limited, 21, Old Court House Corner, Kolkata, West, Bengal, India Ø The Hongkong & Shanghai Banking Corporation Limited, Mercantile House, 15, Kasturba Gandhi Marg, Delhi – 110001, India Ø State Bank of India, New Delhi, India Ø ABN Amro Bank NV, New Delhi, India Ø Citibank N.A., New Delhi, India Ø Deutsche Bank, New Delhi, India Ø United Bank of India, New Delhi, India

Banking Relations :	Good
Auditors :
Name :	G Basu & Company Chartered Accountants, Kolkata, West Bengal, India Price Waterhouse Coopers Chartered Accountants
Memberships :	Ø Confederation of Indian Industry Ø Federation of Indian Chambers Commerce and Industry
Associates	Ø Dabon International Private Limited Ø Luna Trading Company Private Limited Ø Dabur Ayurvet Limited Ø Dabur Ayurvedic Specialities Limited Ø Dabur Products Limited Ø Dabur International Limited Ø Excelcia Food Limited, Biscuits (Joint Venture with Nestle Spa) Ø Green Valley Products Private Limited
Subsidiaries :	Ø Dabur Foods Limited Ø Pasedens Foods Limited Ø Asian Consumercare Private Limited Ø Dabur Nepal Private Limited Ø Dabur Egypt Limited Ø Dabur Finance Limited Ø Dabur Overseas Limited Ø Dabur International Limited Ø Weikfield International (UAE) Limited Ø Dabur Foods Limited Ø Dabur Oncology Plc

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Rs. 10/- each	Rs. 500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
57330000	Equity Shares	Rs. 10/- each	Rs. 573.300 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		573.300	286.400	286.249
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3905.400	3094.300	2400.332
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4478.700	3380.700	2686.581
LOAN FUNDS
1] Secured Loans		192.300	157.000	190.937
2] Unsecured Loans		13.400	329.300	207.191
TOTAL BORROWING		205.700	486.300	398.128
DEFERRED TAX LIABILITIES		0.000	0.000	79.695
TOTAL		4684.400	3867.000	3164.404
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1857.700	1823.500	1549.433
Capital work-in-progress		130.700	92.600	1712.267
INVESTMENT		2750.800	2709.400	5.701
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1156.100	1280.300	1114.978
	Sundry Debtors	269.400	492.800	420.722
	Cash & Bank Balances	380.400	106.500	118.872
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1050.900	653.900	538.649
Total Current Assets		2856.800	2533.500	2193.221
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2101.400	2511.600	1645.207
	Provisions	1138.900	838.500	716.981
Total Current Liabilities		3240.300	3350.100	2362.188
Net Current Assets		[383.500]	[816.600]	[168.967]
MISCELLANEOUS EXPENSES		328.700	58.100	65.970
TOTAL		4684.400	3867.000	3164.404

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	13877.800	12886.500	11339.300
Profit/(Loss) Before Tax	2148.600	1650.100	1134.400
Provision for Taxation	258.000	170.000	122.400
Profit/(Loss) After Tax	1890.800	1480.100	1012.000
Total Expenditure	11729.200	11236.400	11339.300

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1st Qtr	2nd Qtr	3rd Qtr
Sales Turnover	3358.100	4368.800	5087.000
Other Income	49.800	76.900	19.400
Total Income	3407.900	4445.700	5106.400
Total Expenditure	2883.600	3590.900	4197.000
Operating Profit	524.300	854.800	909.400
Interest	14.800	10.100	18.400
Gross Profit	509.500	844.700	891.000
Depreciation	44.600	49.800	64.700
Tax	58.300	96.800	99.000
Reported PAT	396.600	688.100	717.300

Notes

200606 Quarter 1 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (306.00) million Consumption of Raw Materials Rs 1123.90 million Purchase of Finished Goods Rs 550.90 million Advertising & Publicity Rs 439.90 million Staff Cost Rs 248.60 million Sales Tax Paid Rs 310.90 million Other Expenditure Rs 497.30 million Tax Includes Provision for Current Tax Rs 52.20 million Deferred Tax Rs 10.00 million Fringe Benefit Tax Rs 6.10 million EPS is Basic (Post Bonus) Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 53 Complaints disposed off during the quarter 50 Complaints unresolved at the end of the quarter 03 1. Consolidated financials results for the current quarter also include the performance of M/s Asian Consumercare Pakistan Private Limited, recently formed Subsidiary of Dabur International Limited (Subsidiary of the company). 2. Three domestic subsidiaries viz. Balsara Hygiene Products Limited, Balsara Home Products Limited, Besta Cosmetics Limited, wherein investment of the company aggregated Rs 1684.529 million, are shortly expected to be merged with the company retrospectively since April 01, 2006. The Scheme of merger, which has been approved in court convened meetings of shareholders and unsecured creditors of the Company, both held on July 08, 2006, is pending approval of Hon'ble High Courts of Delhi and Mumbai. After Receipt of orders from Hon'ble courts and filing of same with ROC, Assets, Liabilities, Income and Expenses of the merged entities will be accounted for in company's account retrospectively since April 01, 2006. Considering this, Income, Expenses, Assets, Liabilities and Capital employed pertaining to the entities under merger remain unrepresented in unaudited financial results and segment report published for the quarter. However same have been included in the consolidated unaudited financial results and segment report for this quarter. 3. During the quarter, paid up capital of the company has increased by Rs 374468 consequent upon issue of 374468 equity shares of Re 1/- each on May 25, 2006 to the employees upon exercise of stock options. 4. During the quarter, long term investment in an overseas subsidiary has been added by Rs 217.80 million pursuant to Dabur International Limited allotting 600000 equity shares of GBP 1, at a premium of GBP 3.30 per share. Share application money thereon was paid in last quarter. 5. Consequent upon change in valuation of inputs from FIFO basis to weighted average method, value of closing inventories have come down by Rs 4.668 million, with consequent decline in profit by said amount, impact herein not being material, the figures of earlier period have not been recast to make them comparable with current quarter. 6. The company has provided deferred tax liability on estimated basis. 7. Corresponding figures of previous period/year have been regrouped wherever necessary to correspond to current period/year classification. 8. The above results duly reviewed by the Audit Committee, have been taken on record by the Board of Directors in its meeting held on July 19, 2006. 9. The statutory auditors of the Company have completed the Limited Review of financial results of Dabur India Limited for the quarter ended on June 30, 2006 in accordance with clause 41 of the Listing Agreement and found no impact on the above stated figures.

200609 Quarter 2 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (409.40) million Consumption of Raw Materials Rs 1647.20 million Purchase of Finished Goods Rs 670.20 million Advertising & Publicity Rs 359.00 million Staff Cost Rs 304.00 million Sales Tax Paid Rs 337.50 million Other Expenditure Rs 658.90 million Depreciation includes Depreciation Rs 49.80 million Amortisation Rs 23.50 million Tax Includes Provision for Fringe Benefit Tax Rs 7.50 million Current Tax Rs 89.30 million Deferred Tax Rs 10.00 million EPS is Basic Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter 03 Complaints Received during the quarter 59 Complaints disposed off during the quarter 61 Complaints unresolved at the end of the quarter 01 1. The Board of Directors has proposed for issue of ONE bonus share for every TWO equity shares held by the shareholders of the company by way of capitalization of amount standing to the credit of General Reserve Account, subject to approval of shareholders of the company. Consequent upon recommendation for bonus issue, the size of outstanding options shall also be adjusted correspondingly so that the total value of options in the hands of employees remains the same after the bonus issue. 2. The Board has declared an interim dividend @ 100% (i.e. Re 1.00 per equity share having face value of Re 1 each) for the financial year 2006-07 aggregating to Rs 574.10 million excluding dividend tax. 3. Consequent to merger of three subsidiaries namely Balsara Home Products Limited, Balsara Hygiene Products Limited and Besta Cosmetics Limited with the company with Effective Date of September 28, 2006 retrospectively from April 01, 2006 (Appointed Date), the current quarter and half year reflect post merger figures and hence not comparable with figures of previous period/year. 4. Consequent upon change in valuation of inputs from FIFO basis to weighted average method, value of closing inventories was higher by Rs 2.689 million with consequent increase in profit by said amount. However for half year value of closing inventories was lower by Rs 1.979 million and consequently the profit was lower by the said amount. Impact not being material, the figures of earlier period/year have not been recast to make them comparable with current period/year. 5. The company has provided deferred tax liability on estimated basis. 6. During the quarter , paid up share capital of the company had increased by Rs 3,50,514/- consequent upon issue of 350514 equity shares of Re 1/- each on August 21, 2006 upon exercise of stock options to the employees. 7. The company has redefined its reportable business segment into :- i) Consumer Care Business, ii) Consumer Health Business, and iii) Foods Business. 8. Accounting Standard - 15 as revised by ICAI will be implemented at the end of current year. 9. Corresponding figures of previous period/year have been regrouped wherever necessary to correspond to current period/year classification except point 2 above. 10. The above results duly reviewed by the Audit Committee, have been taken on record by the Board of Directors in its meeting held on October 31, 2006.

200612 Quarter 3 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 125.40 million Consumption of Raw Materials Rs 1652.50 million Purchase of Finished Goods Rs 445.40 million Advertising & Publicity Rs 632.80 million Staff Cost Rs 313.30 million Sales Tax Paid Rs 377.30 million Other Expenditure Rs 635.60 million Tax Includes Provision for Fringe Benefit Tax Rs 9.20 million Current Tax Rs 89.80 million Deferred Tax Rs 10.00 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter 01 Complaints Received during the quarter 35 Complaints disposed off during the quarter 34 Complaints unresolved at the end of the quarter 02 1. Consequent to the merger of three subsidiaries namely Balsara Home Products Limited, Balsara Hygiene Products Limited and Besta Cosmetics Limited with the company retrospectively from April 01, 2006, Net Profit & Basic EPS Pre Bonus reflect post merger figures and hence not comparable with figures of previous period/year. 2. Subsequent to shareholders approval to issue of one bonus share for every two equity shares held by the shareholders, the company had fixed January 29, 2007 as the record date. Post record date, the company will take steps to issue bonus shares expeditiously. 3. During the quarter, paid up share capital of the company had increased by Rs 63,336/- consequent upon issue of 63,336 equity shares of Re 1/- each on October 31, 2006 to erstwhile shareholders of Balsar a Hygine Products Limited under scheme of Amalgamation & Arrangement. 4. The company had paid the interim dividend @ 100% (i.e. Re 1 per equity share, having face value of Re 1/- each ) for the financial year 2006-07 aggregating to Rs 574.10 million excluding dividend tax on November 23, 2006. 5. Consolidated herein is a new overseas body corporate Naturelle LLC which has been incorporated in Emirate of Ras-al-Khaimah on December 14, 2006 as subsidiary of Dabur International Limited, another Overseas Subsidiary by virtue of latter's control of composition of board of directors therein. 6. During the quarter, Pasadensa Foods Limited, subsidiary of Dabur Foods Limited, ceased to be a step down subsidiary of the company consequent to its merger with Dabur Foods Limited with effective date of December 26, 2006, retrospectively from April 01, 2006 (Appointed Date). 7. During the quarter, additional manufacturing facility at Jammu became operational. 8. Implementation of AS-15 ( as revised) will be taken up at the close of the year. 9. Corresponding figures of previous period have been recast / regrouped wherever considered necessary to correspond to current period classification. 10. The above results duly reviewed by the Audit Committee, have been taken on record by the Board of Directors in its meeting held on January 19, 2007. 11. The statutory auditors of the company have completed the limited review of financial results of Dabur India Limited for the quarter / nine months ended on December 31, 2006 in accordance with clause 41 of the Listing Agreement and found no impact on the above stated figures.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.09	0.15	0.22
Long Term Debt-Equity Ratio	0.06	0.11	0.17
Current Ratio	0.79	0.79	1.27
TURNOVER RATIOS
Fixed Assets	4.24	4.33	4.06
Inventory	11.24	10.68	7.97
Debtors	35.94	27.78	14.46
Interest Cover Ratio	38.50	36.41	15.97
Operating Profit Margin(%)	17.50	14.72	11.91
Profit Before Interest And Tax Margin(%)	16.11	13.37	10.54
Cash Profit Margin(%)	15.20	13.01	10.19
Adjusted Net Profit Margin(%)	13.80	11.67	8.82
Return On Capital Employed(%)	54.04	49.70	29.50
Return On Net Worth(%)	48.12	48.79	29.78

STOCK PRICES

Face Value	Rs.10/-
High	Rs.134.70/-
Low	Rs.131.60/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was formed by way of amalgamation in October, 1986. Prior to this, the company was operating under the name Dabur (S K Burman) Private Limited, since 1930.

The company's business is carried out by three division in India. They are Conusmer Care Division which offers a wide range of products in hair care, oral care, health supplements, digestives and candies, and baby and skin care products, Conusmer Healthcare Division which offers products based on Ayurveda & Dabur Foods Limited which prodcues fruit juices, cooking pastes, sauces and items for institutional food purchases. Dabur is unique among its FMCG peers, because of its positioning as an Indian company whose products are derived from exotic sources such as ancient ayurvedic texts and natural ingredients such as herbs.  

The company has various brand leaders in different market segments -- Dabur Chyawanprash, a health tonic and Hajmola, a digestive tablet,. Two new brands, Real and Hommade, launched during 1996-97 have also carved out a niche in the market. Dabur added a new variant to its Pudin Hara range. It's key pharmaceutical brand New Livfit recorded a growth of more than 100%.  

During the first quarter of 2001, the company made an additional investment in Dabur Oncology plc, the subsidiary set up in the United Kingdom to manufacture and market oncology formulations for European and U.S.A.markets which was expected to commence production by the end of 2001. This will enable the company to enter the high potential Western European and U.S.A. markets.

In the last couple of years, company has taken up a major restructuring exercise relating to strategic focus, operational efficiencies and organisational aspects. It exited from the ayurvedic herbal veterinary drugs business by selling brands of Ayurvet for a consideration of Rs. 30.000 millions. It has also hived off its food division into a separate wholly owned subsidiary i.e. Dabur Foods Private Limited (DFPL). DFPL has acquired Pasadensa Foods Private Limited thus making it a subsidiary of itself w.e.f. November 11, 2003. As DFPL is a wholly owned subsidiary Pasadensa Foods Private Limited will automatically become subsidiary of Dabur India. In January, 2001, the United Kingdom based insurance major CGU signed a memorandum of understanding with the Dabur group to enter the life insurance sector. The new company – Dabur CGU Life Insurance Company – will be applying to the Insurance Regulatory and Development Authority (IRDA) for approval and hopes to commence operations by the middle of this year. According to estimates, CGU will invest 26% in the new company and the remaining investment will be made by the promoters of the Dabur group of companies.

The company is planning to start a manufacturing unit in Jammu for manufacturing Personal products. This plant was expected to be commissioned in 2003-04.

As a part of restructing its business the board of the company has recommended a de-merger of the Pharmaceutical business and its transfer to a new company – Dabur Pharma Limited. The company has proposed to issue one additional share of Dabur Pharma Limited for every share held in Dabur India as a part of Scheme of de-merger. The new company will focus mainly on Allopathy, Oncology formulations and Bulk Drugs. In 2005 the company acquired the entire promoters stake in three Balsara Compaines that is Balsara Hygiene products, Balsara Home Products and Besta Cosmetics Limited together for a cost of Rs.1400 millions. 

In December 2000 the company’s equity shares of Rs. 10 each were split into 10 equity shares of Rs. 1 each. These has been done to increase the number of shares which will improve the overall liquidity of the company.

The company was planning to start a manufacturing unit in Jammu for manufacturing Personal products and this was commissioned in November 2003. During 2005 the company increased its installed capacity of Hair oils by 6000 Kilo-Ltrs. With this expansion the total installed capacity of Hair Oils has been increased by 12000 Kilo-Ltrs.

OPERATIONS 

Robust manufacturing and supply chain practices support Dabur's widened presence in the FMCG market place with newer and increased product offerings. The company has been undergoing a structured change in it operations structure, with emphasis on enhancing in-house manufacturing capabilities, utilising innovative procurement tools and developing an efficient supply chain. A clear reflection of gains from these functions the fact that in an inflationary input market scenario, DIL managed to increase its operating profitability margin (PBDIT/Sales) from 14.8 per cent in 2004-05 to 17.8 per cent in 2005-06. The core operations are supported by a strong information technology (IT), human resources (HR) and research and development (R&D) backbone. 

Export Plans: 

Organic & inorganic growth will be pursued in the coming & future years to bolster sales growths & gain economies of scale, thereby boosting profitability. 

Health care & Oral Care through the private label route will be a thrust area with necessary R&D & backroom inputs. 

Pakistan, Bangladesh & Nigeria would take major investments & expected to grow substantially. In addition a major thrust is being put in the Russian & select CIS markets to tap the oral care & Health Care opportunities.

INTERNATIONAL BUSINESS 

International business recorded a sales growth of 19per cent from Rs.1812 millions in 2004-05 to Rs.2161 millions in 2005-06. This includes the exports of Balsara's portfolio of products in the oral care and private label segments. 

Middle East and Egypt performed very well with growth of 27 per cent and 49 per cent respectively. Sales in Bangladesh grew by 54 per cent led by Vatika and Anmol range of shampoos. However, performance in the developed markets of UK, USA and CIS countries were below expectations. 

Dabur has also made a foray into the Pakistan market through its subsidiary Asia Consumer Care (Pak) Limited The initial response has been good, and the company is optimistic about its prospects there. A team has been put in place headed by a Pakistani national who has extensive experience in the local FMCG market. 

The company has been accredited with ISO 9002 certification.

The company has collaborated with leaders in their fields to set up joint ventures in India. The joint venture with Agrolimen of Spain, General De Confiteria India Limited, manufactures confectioneries. Dabon International Limited, the joint venture with Bongrain of France, will manufacture speciality cheese. Dabur has collaborated with Osem of Israel to manufacture bakery specialities and other food products.

It is in trade terms with: -

· 4R Health Care

· A. P. Polyplast Private Limited

· Abhimanyu Containers

· Abhinav Printing & Packagings

· Ace Print & Pack Private Limited

· Ajanta Packaging

· Alok Industries

· Alpha Packaging

· Amita Polymers Private Limited

· Anipra Chemicals Private Limited

· Baba Print

· Bee Kay Enterprises

· Bharat Rubber Works

· Bharti Engineering Works

· British Health Products Limited

· Jasmer Packers Private Limited

· Jipon Plasto Moulds Private Limited

· Jiwan Die Makers

· Kamet Plastics Private Limited

· Kavita Enterprises

· Keshav Hichem Private Limited

· Krishna Printers

· Kush Prints Private Limited

· Kwality Offset Printer

· M. J. Enterprises Limited

· Magadh Plast Private Limited

· Magnesium Products Private Limited

· Mahabir Indsutries

· Mahavir Packers

· Protech Engineering Industries

· R. K. D. Pharmaceuticals

· R. P. Fragrances

· Reliplast Private Limited

· Rohini Chemical

· Rototech

· RSG Packing Private Limited

· SAB Convertors Private Limited

· Sahu Sons

· Sea-Shell Chemicals Private Limited

· Sheel Packaging Private Limited

· Shree Gobinddeo Glass Works

· Shree Packers

· Shri Indra Ayurvedic Stores

· Shrink Pack Labels (Private) Limited

· Burman Laboratories Private Limited

· Care Marketing Company Private Limited

· Classic Bottle Caps Private Limited

· CNC Plastic Private Limited

· Compack Enterprises India Private Limited

· Cure and Care Products

· Dolsun Containers Private Limited

· Domino Printech India Private Limited

· Dynamic Sticker Industries

· Esskay Printers Private Limited

· Expo Essential Oils

· Faridabad Plastics

· Firmenich Aromatics (India)

· Flex Alloys Private Limited

· Gogia Chemical Industries

· Guru Nanak Enterprises

· H. B. D. Packaging Private Limited

· H. S. Enterprises

· Indica Chemical Industries

· Interlables Industries Private Limited

· Printex Centre

The company has joint venture with: -

· Dabon International Private Limited

· Green Valley Products Private Limited

The company’s fixed assets of important value include land (freehold & leasehold), buildings, roads & culvert, plant & machinery, vehicles, furniture & office equipments, computers, patents, live stock and capital work in progress.

CORPORATE RELEASES

Dabur Unveils Strategic Roadmap For Its Retail Venture; Announces 75% Interim Dividend

Mar 13, 2007, New Delhi

Ø Plans Chain Of Over 350 Stores On The Health & Beauty Format

Ø Targets Revenues Of Rs 1,7000 Millions In 5 years

Ø Business To Operate As Subsidiary Of Dabur India

Ø Announces Interim Dividend Of 75%

New Delhi, March 13, 2007: Dabur India Limited, a leading FMCG company in India with a consolidated turnover exceeding Rs. 20000 Millions, today announced plans to enter the high-growth organized retail market in India. The Board of Directors of Dabur India today approved its entry into the organized retail market in India through a wholly-owned subsidiary, H&B Stores Limited (under incorporation).

The Board of Directors of Dabur India Limited also announced an interim dividend of 75% for 2006-07, on the enhanced capital (post-Bonus issue). With this, Dabur India has announced a total dividend of 213% for the 2006-07 fiscal on pre-Bonus capital.

Dabur India will invest Rs 1400 Millions by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format. As part of its plans to provide a world-class retailing experience to consumers across India, The Company plans to establish stores ranging from 1,500 sq ft to 6,000 sq ft in size, offering international quality store environment and product range.

Three senior professionals and experts from the global retail industry have been roped in to drive Dabur India's retail foray. These expatriates have retail experience of more than 25 years each, encompassing merchandising, store design and sourcing.

Mr. V C Burman, Chairman, Dabur India Limited, said, "Retail is the next big focus area for Dabur India. H&B Stores Limited plans to set up 350 retail stores across India in 5 years and expand it to over 1,000 stores by its 10th year of operation."

Dabur India's Health & Beauty Stores would roll out in Metro and Tier-1 cities in 2007-08. "The Company recognized a clear need gap that exists in Health & Beauty retail space in India, thereby enabling Dabur to have early mover advantage. The retail venture would be run under a separate brand name, which will be decided in due course. H&B Stores expects to start generating profits by the 4th year of operations with revenue exceeding Rs 10000 Millions ," said Mr. Sunil Duggal, Chief Executive Officer, Dabur India Limited

"Organized retail, which currently accounts for only 3% of the total retail market in India, has tremendous growth potential in the fast expanding Indian economy. Dabur India, with its in-depth understanding of the Indian consumer and capability to deliver a great experience at affordable prices, is uniquely placed to enter the Indian retail sector. We will bring great value to consumers by offering quality products at affordable prices," said Dabur India Limited, Group Director-Corporate Affairs, Mr. P D Narang.

This venture is also synergistic with Dabur's current portfolio of Ayurvedic & Herbal products and would add significantly to the company's distribution footprint.

About Dabur India

Dabur India Limited is one of India's leading FMCG Company with a consolidated turnover exceeding Rs 2,0000 Millions. Building on a legacy of quality and experience for over 120 years, Dabur today is India's most trusted name and the world's largest Ayurvedic and Natural Health Care Company.

The largest Indian Personal Care and Health Care Company, Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur India's FMCG portfolio today includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Real for fruit-based drinks and Anmol for affordable personal care products.

Dabur India third quarter profit surges 24%, revenue up by 26%

Jan 19, 2007, New Delhi

Ø Dabur India Q3 net profit at Rs 717.300 Millions on a turnover of Rs 5087 Millions

Ø Dabur India nine-month net profit surges 34.22% to Rs 1863.800 Millions, revenue up 28.57% to Rs 13332.600 Millions

Ø Dabur India (consolidated) Q3 net profit rises 22.08% to Rs 792.700 Millions, revenue increases by 14.92% to Rs 6175.900 Millions

New Delhi, January 19, 2007: The Board of Directors of Dabur India Limited (DIL) met here today to consider the unaudited financial results of the company for the quarter and the nine-month period ending December 31, 2006.

Riding on strong growth across all its core categories, Dabur India Limited recorded a 23.7% growth in net profit during the third quarter of the 2006-07 financial year. Its net profit for the third quarter stood at Rs 717.300 Millions, up from Rs 579.700 Millions in the same period last year. Its turnover for the quarter also marked a 25.7% increase to Rs 5087.000 Millions from Rs 4048.400 Millions in the corresponding quarter of the previous fiscal.

For the nine-month period ending December 31, 2006, Dabur India net profit surged 34.2% to Rs 1863.800 Millions from Rs 1388.600 Millions in Q3 of 2005-06. The turnover, during the same period, registered a growth of 28.6% to Rs 13332.600 Millions from Rs 10369.900 Millions a year earlier.

"The key drivers of growth were International business, foods, oral care, health supplements and home care, all of which recorded strong double digit growth. The company is also moving forward on its plan to expand its existing product categories and new geographies," said Mr Sunil Duggal, CEO, Dabur India.

The third quarter saw Dabur India introducing a host of new products - like Vatika Root Strengthening shampoo and Chyawanshakti with high levels of ashwagandha to combat stress - which have been very well accepted in the market.

Dabur Consolidated

Dabur India Limited (Consolidated) posted a 22.1% growth in net profit in the third quarter at Rs 792.700 Millions, as against Rs 649.300 Millions in the same period last year. Turnover for the quarter posted a 14.9% growth to Rs 6175.900 Millions, from Rs 5374.000 Millions a year earlier.

For the nine-month period ending December 31, 2006, consolidated net profit recorded a 25.5% jump to Rs 2061.300 Millions, from Rs 1642.200 Millions a year earlier. The turnover, during the same period, increased by 16.7% to Rs 16572.300 Millions as against Rs 14196.400 Millions in the corresponding period of the previous financial year.

Dabur Foods Limited, a 100% subsidiary of Dabur India and the market leader in fruit juices with its REAL brand, posted a 24.9% increase in sales during the third quarter of this fiscal at Rs 628.300 Millions, from Rs 502.900 Millions a year earlier. Both Real and Real Activ range of juices continued to post impressive growth.

Overseas sales recorded significant gains during the nine-month period, reporting a 32.4% surge in turnover at Rs 2221.600 Millions as against Rs 1677.500 Millions in the corresponding period last fiscal. Growth was lead by strong performance in focus markets such as GCC countries, Egypt, Nepal and Pakistan.

"We have built strong capabilities to tap emerging opportunities. What is encouraging is that growth is coming primarily from our core markets, which is in line with our strategy for the international business. Our core brands of DABUR and VATIKA are driving this growth. Entry into new markets in the MENA (Middle East & North Africa) region will only add to the growth momentum," said Mr P D Narang, Group Director-Corporate Affairs, Dabur India.

Dabur International, a wholly-owned subsidiary of Dabur India, is setting up a greenfield manufacturing facility in Ras Al Khaimah in the UAE, called Naturelle LLC. This unit, which will initially manufacture personal care products for the Middle East region, will be the largest facility in the subcontinent.

Corporate Initiatives

During the quarter ended December 31, 2006, the merger exercise for three Balsara group entities - Balsara Hygiene Products Limited, Balsara Home Products Limited and Besta Cosmetics Limited - with Dabur India was completed. With the completion of this merger, Dabur India formally became the No 3 player in the oral care business.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.87
UK Pound	1	Rs.84.79
Euro	1	Rs.57.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		68

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions