,43

m ited an d ad ditio nal information, prepare

of ~abur India Li sition. Also interpret
c,Wing Balance_ Sheet ting ratios to aSSess short-term fin ancial po
:lent and required accoun
:!1tefJJ
~
ii I

o - ., ,.Gh..az~fabad - 201 01o/U.P.), India .

babad,
Oabur Tower, Kaushambl, Sahfx: 0120- 4374935, Website: www.dabur.com
000, Fa
Tel: 0120 - 39412525, 3982
[fi n Lakh)
rch,
Note No. 31st March, 31st Ma
2024 ,r, 2023 ro
ITY AND LIABILITIES
$hlreholders' Funds
t, ·t I 17,565 17,438
(a) Share Cap, a
1 2,12,2S8 1,72,796
(b) Reserves and Surp
lus

Non-Current Llabllitles 4,264

S,03S /
ities (Net)
2. (a) Deferred Tax Liabil 4,279 t 4,014
s
(b) Long-~erm Provision
rrent Llablllties . 12,9131 4,429
3. Cu
s 70,467
(a) Short-term Borrowing 75,664
17,022 14,730
(b) Trade Payables
345 287
(c) Other Current
Liabilities 2
3,45,081 2,88,425
(d) Short-term Provisions
Total

t As selS d Intangible Assets: 64,226

1. Non:Curren ~ t an
II, ASSETS d Equipme nt an 66,243
t, l3 9
and Equipment 2,009
{a) Property, p, on Plant
property, l,222 t,673
(i) "ble Assets 31,720
(··,) lntang1 i -Progress 1,16,945
I 1Work-n t,230 l,485
ts
(iii) capita investmen
d Advances. 200
-currentt.oans an
(b) Non
ng-terrn t Assets
(c) Lo No"-curren 37,117 56,367
(d) ()the' 55,820
~~.~
55,060
estments
32,312
2. : current' 33,879
12,394 29,747
(b) •~ v a b le s 8,462
11,408
rrade R Cash EquivaleAdntsvances
sh and d 7,3 74 5,474
d) ca rt-term Loans an
((d -
2,88,425
current Assets 3,45,081
I
(e) Sh_.O
.e r
(f} V" ''

I
 .1,33
1,72

34S 287
-~

...al d f 191959 ~ and for the year ended

t~
31stMalm,~, 31st March, 2024
(fin Lakh)
2. Dtp,edltimt - ' AwawflMMM:
6,219
Depreciation on Property, Plant and Equipment 378
Amortisation of Intangible Assets 6,597
Total
3. Other Income Includes: 10,759
Interest Income 52
Gain (Profit) on Sale of ~ts 10,811
Total . ·
4. Loss on Sale of Property, Plant and Equipment is f 78 Lakh.
•
5 Gain (Profit) on Sale of Property, Plant and Equipmen tis f 52 Lakh.
B rrowings f 514 Lakh.
6.• Other Expenses include interest payment on Long-term 0
7.. Sale of Property, Plant and Equipment during the year is f 1,493 Lakh.
8. Other Current Assets comprises of Dividend Receivable on Investments.

Project Solution
About the Project
Assessment about its ability to meet short-term financial obligations as and when they become due for
payment for Liquidity Ratios, i.e., Current Ratio and Quick Ratio have been computed.
Cash Flow Statement of Dabur India Limited is to be prepared as per Accounting Standard-3. Also, the
company's results are to be interpreted.
Balance Sheet as at 31st March, 2024 and additional information is provided.
The project has been planned and executed as follows:
l. Redrafting of Balance Sheet of Dabur India Limited for the purpose of Cash Flow Statement.
2. Cash Flow Statement of Dabur India Limited is prepared as per AS-3 (Revised) for the year ended
31st March, 2024 is prepared following the Indirect Method for computing Cash Flow from Operating
Activities. The company has ma~e payment for Tangible and Intangible Assets and also on account of
Income Tax and Dividend. Open Memorandum Fixed Assets Account to calculate the purchase of assets-
3. Cash Flow Statement prepared is analysed and observations are mad e.
4. Bar diagram is prepared to show Cash Flow from (or u se d 1n • ) . ting and
0 perattng, 1nves
Financing Activities.
 a t· .
~ c e Sheet of Dabur Indi llllited for th P,45
ePllrpose of Cash Flow Stati
. entent
ia U111
Dabur TOWer, Kausha D1~, Ind Gh ~
Tel: 0120- 39412525 39 mb
i, Sah1babad
, 82000, Fax: OJ20,_ 43 :t dW,
!~ 010 IU.P.), India
' e site: WWw.dabur.com
-----
~---------- (?in Lakhs)
Note No. 31st March , 31st March,
20 24(f) 2023(0
ITV AND LIABILITIES
1, Shareholders' Funds
(a) Share Capital
17,S65 17,438
(b) Reserves and Surplus 1 2,17,293 1,77,060
2. Non-Current Liabilities
:

Long-term Provisions 4,279 4,014

3, Current Liabilities
(a) Short-term Borrowings 12,913 4,429
70,467
(b) Trade Payables 75,664
s 17,022 14,730
(c) Other Current Liabilitie 287
2 34S
(d) Short-term Provisions : 2,88,425.
3,45,081
Total ---
II. ASSETS II
1. Non-Current Assets :
I
uipment andIntangible Assets 64,226
(a) Property, Plant and Eq 66,243
uipment 1,139
(i) Property, Plant and Eq 2,009
1,222 l,673
(ii) Intangible Assets 31,720
ress 1,16,945
(iii) Capital Work-in-Prog 1,485
1,230
nts
(b) Non-current Investme 200
d Advances
(c) Long-term Loans an
ets
{d) Other Non-current Ass 37,117 56,367
55,060 55,820
2. Current Assets 32,312
st 33,879
(a) Current Inve ments
12,394 29,747
(b} Inventories 8,462
vables I ts 11,408
(c) Trade Recei
C hfqulva en 5,474
7;374
(d) Cash and as nd Advances
3,45,081 2,88,425
Short-term Loans a - -- -- --
~

(e) tAsSets
(f) Other Curren

Total (Net) is not

nt of the De ferred Tax Liabilities/Assets
ccounting trea.tme
and not an
. .
·de lifle s, a Share ho lde rs' Fu nd s and it is a book entry
Clarijicatiori.caSE ei.11 . also it is a part of , Balance in Statemen
t of
1 passe d by de biting /crediting Surplus, i.e.
rW ~e entry
As pe r the . _A 0.t1te It 1s an
111ate"" sset- e,
to be eva ;A ck to Surplus, ,·••
ab ilit 1 wh ere De ferred Ta x Liability is added ba
Li i..m>n redrafted
actual &t, tp:,,-,
,.c,
t J,aS "" "
profit ,e Shee f profit & Loss.
13afat1 eJ'lt o
J-Ience, ·11 5tateJJ1
aaiatt'eJ
I --- ... ?1 ¢

P.46 Analysis of Flnanclal Statements-case X11 •••.

R·tdr1ftect N0 tes to Accounts

Particulars 31st March, 31st March
'
2024 (t) 2023~

1• Rtstrvts ind Surplus

56,350 39,294
General Reserve 1,33,502
1,55,908
Surplus, I.e., Balance In Statement of Profit & Loss 1,60,943 4,264 1,37,766
5,035
Add: Deferred Tax Liabilities (Net) Transferred
Total -
2,17,293 1,77,06()
- -
2. Short-term Provisions
Provision For Tax --
345
-287

Anafytlcal Tools Used

Analytical too]s used for analysis are:
1. Accounting Ratios (i.e., Liquidity Ratios), and
2. Cash Flow Statement.
For analysing the financial data of the company.

Computation, Analysis and Comments

1. COMPUTATION OF LIQUIDITY RATIO

31st March, 2023 (t) 31st March, 2024 (t)
Particulars
(I) Current Ratio:
Current Assets/Current Liabilities ' 1,88,182/f 89,913 = f 2.09: 1 f 1,57,232/f 1,05,944 = f 1.48: 1
(If) Quick Ratio:
Quick Assets/Current Liabilities f 1,32,362~ 89,913 = f 1.47 : 1 t 1,02,172/f. 1,05,944 = t 0.96: 1

CASH FLOW STATEMENT for the year ended 31st March, 2024 ~ in lakh)
2.
Particulars For the year
ended 31st
March,2024
A. Cash Flow from Operating Activities
Closing Balance of Surplus, I.e., Balance in Statement of Profit & Loss 1,60,943
Less: Opening Balance of Surplus, I.e., Balance in Statement of Profit & Loss 1,37,766 23,177
Add: Transferred to General Reserve 17,056
Provision for Tax 345
Dividend Paid (Proposed for the year ended 31st March, 2023) 23,75~
Net Profit before Tax and Extraordinary Items 64,333
Add: Non-cash/Non--operatlng Expenses:
Depreciation and Amortisation 6,597
Long-term Provisions 265
Loss on Sale of Property, Plant and Equipment 78
Finance Cost (Interest on Long-term Borrowings) 514 7,454
--+--71,7 87
 P.47

Ni,,-ca~on-operatlng Incomes:
52
. Gain (Profit) on Sale of Property, Plant and Equipment 10,811
f 0,7S9
• Interest received on Fixed Deposits
--~ -60 ,97 6
t,perat1n1 Profit before Working Capltal Chang11
se/(decrease) In Cu"ent Llabflftles
Adjustment of (lncrease)/decrease In Current Assets and lncrea •
s: .
At}d: increase In Current Llabl/lties and Decrease In Current Asset 5,197
Trade Payables 2,292
Other Current Llabllltles
. 7flJ_,___ _8,249
___
Inventories
69,225

Less: Increase in Current Assets:

Trade Receivables 1,567
2,946
Short-term Loans and Advances •
Other Current Assets p
f,900 .
.. - ' -6,413
--
62,812
cash Generated from Operations I 287
--
Less: Income Tax (paid) -·

62,52S
cash Flow from Operating Activities
• B. cash Flow from Investing Activities
Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
(9,304)
(1,248)
I
1,493
Sale of Property, Plant and Equipment (85,225)
Purchase of lovestments (200)
Increase in Other Non-currents assets 255
Decrease In Long-term loans and advances 10,759
Interest received on fixed deposits (83,470)
Cash Used In Investing Adlvltles
C. Cash Flow from Financing Adlvltles 8,484
Increase in Short-term Borrowings (23,755)
Payment of Dividend 127
Proceeds from Issue of Shares (514)
Finance Cost (Interest on Long-term Borrowings) (15,658)
cash Used In financing Adlvltles (36,603)
D Net Decnase In Cash and Cash Equivalents (A
+ B + C)
the year (' 56,367 + t 29,747) 86,114
• Add: Cash and Cash Equivalents In the beginning of
(f 37,117 + f 12,394) 49,511
E. Cash and Cash Equivalents at the end of the year
----------L~

Worklttf Not,,:
PROPERTY, PLANT AND EQUIPMENT ACCOUNT Cr.
(i) o,. t Particulars
Particulars 64,226 By Loss on Sale of Property, Plant and
To Balance bid 4S1 Equipment Ale (Statement of Profit & Loss) 78
Ital Work-In-Progress Ale
To C:,f
n (Profit) on Sale of Property, Plant and By Bank Ale (Sale of Property, Plant and
To G t Ale (Statement of Profit & Loss) 52 Equipment) 1,493
Equlpmen ) 9,304 By Depreciation Ale
( Balan cing Figure 6,219
To Bank Ale ...... By Balance c/d
,_ 66,243
74,033
._
._
74,033
 (Iv) Cu"ent Investments are Included In Cash and c.ash Equtvalents being Marketable Securities.

Analysis and Comments

1. Current Ratio in the year ended 31st March, 2024 has d«l:ased to 1.48 : 1 from 2.09 : 1 (previo
year), which is unsatisfactory. On other hand, Quick Ratio of the ~ompany was 1.47 : 1 in us
previous year (2023). which was nearly ideal and better. However, it has ~e~ased and reach~e
to 0.%: 1 In the current year (2024). It means the company does not have liquid assets more th d
what it requires and this shows efficiency in terms of Cash Management. an
2. Cash Generated from Operations is positive which is a positive indication. In the near future, th
company may not have to face liquidity problem. e
3. Increase in Trade Receivables is not positive indication. Increase in business may lead to inc
l in Trade Receivables. However, it should be analysed with the bad debt and debt collection p;~:
t to reach on some conclusion.
l 4. Decrease in inventory is a positive indication. It shows that inventory. is properly utilised, however
this should be further analysed through the Inventory Turnover Ratio.
5. Cash
• Flow. from Operating Activities is utilised. in investing and financing activities that means bus·mess
1s generating adequate cash to finance the purchase of assets as well as payment of loan and Interest
6. Investment should be checked with return on capital employed.
RESULT OF DIFFERENT ACTIVITIES
Particulars
Cash Flow from Operating Activities 62,525
Cash Used in Investing Activities (83,470)
Cash Used in Financing Activities {15,658)

1,00,000
80,000 ~
62,525
60,000
ltv
40,000
C: 20,000
·-
+,J
C: 0
::,
0
E (20,000)
<:
(40,000) (15,658)
(60,000)
(80,000)
(1,00,000)

Cash Flow from Operating Activities Cash Used in Investing Activities

---
Cash Used in Financing Aetivi~
- --
f 62,525 t83,470- ~ 15,658
-