ACCOUNTANCY PROJECT

DABUR INDIA LIMITED

Acknowledgement

First and foremost I would like to thank principal smt.Girija T.S and
vice principle for their encouragement and guidance in all our
endeavours.I would ,also like to thank Padma miss for all her
support,help,guidance and blessings.

About Dabur ltd

Dabur India ltd  is an Indian multinational consumer goods company,

founded by S. K. Burman and headquartered in Ghazibad, Uttar
Pradesh. It manufactures Ayurvedic medicine and natural consumer
products,and is one of the largest fast-moving consumer
goods (FMCG) companies in India.Dabur derives around 60% of its
revenue from the consumer care business, 11% from the food
business and remaining from the international business unit.

RATIO ANALYSIS
Ratio analysis is a quantitative method of gaining insight into a company's
liquidity, operational efficiency, and profitability by studying its financial
statements such as the balance sheet and income statement. Ratio analysis is a
cornerstone of fundamental equity analysis.

Objectives of ratio analysis

1. Simplify accounting information.
2. Determine liquidity or Short-term solvency and Long-term solvency.
3. Assess the operating efficiency of the buisness.
4. Analyze the profitability of the business.
5. Help in comparative analysis, i.e. inter-firm and intra-firm comparisons.

Uses of ratio analysis

Ratio analysis is a useful management tool that will improve your
understanding of financial results and trends over time and provide key
indicators of organizational performance. Managers will use ratio analysis to
pinpoint strengths and weaknesses from which strategies and initiatives can be
formed.

PROFIT AND LOSS ACCOUNT FOR DABUR INDIA LTD

Dr PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2021 Cr

PARTICULARS AMT PARTICULARS AMT

EXPENSES INCOME
Cost of materials consumed 2756.03 Revenue from 7138.85
operations[gross]
Operating and Directing expenses 13533 Revenue from 7138.85
operations[net]
EmployANDbenefit expenses 655.82 Total operating revenues 85912
EQUITY LIABILITIES
Finance costs FUND 9.14 Other income 276.65
SHAREHOLDERS
capital and Amortization 176.74143.40
Depreciation
Share
expensesand surpluses
Reserves 5,214.48
Other expenses 1,272.89
NON CURRENT LIABILITIES
TOTAL
Long termEXENSES
borrowings 19.62 5778.07
TAX EXPENSES
Other long term liabilities 1.37
Current tax
Long term provisions 55.55 441.89
DeferredLIABILITIES
tax 140.47
CURRENT
Short term borrowings 151.96
Dividend and
Trade payables dividend percentage
1,480.70
Equity share dividend 592.09
269.31
Other current liabilities
Equity dividend rate 475.00
134.43
Short term provisions
Gross net profit
TOTAL 74659.91
7504.16
100466.3 100466.35
ASSETS 5
NON CURRENT ASSETS
Tangible assets 1,131.00
Intangible assets 26.42 BALANCE SHEET OF DABUR INDIA
Capital work in progress 107.26
LTD
Other assets 47.39
Fixed assets 1312.07 Dr BALANCE SHEET FOR THE
Non current investments 451.14 ST
YEAR ENDED 31 MARCH 2021 Cr
Deffered tax assets 17.45
Long term loans and advances 16.37
Other non current assets 205.52
CURRENT ASSETS
Current investmesnts 451.14
Inventories 1,114.16
Trade receivables 281.24
Cash and cash equalents 834.74
Short term loans and 1.75
advances
Other current assets 146.96
TOTAL 7504.16
RATIOS
Liquidity ratios

1.Current ratio=Current assests/Current liabilities

Current assets=2829.99 ,Current liabilities=2036.4

Liquidity ratio=1.39:1

2.Quick ratio=Quick assets/Current liabilities

Quick assets=current assets-other assets

Quick assets=2782.6

Quick ratio=1.37:1

Solvency ratios

1.Debt to equity ratio=Debt/Equity

Debt=76.54, share holders fund=3431.36,working capital=793.59

Debt Equity Ratio=0.02:1

2.Total assets to debt ratio=Total assets/debt

Total assets=7504.16

Total assets to debt ratio=98.04:1

 Activity ratio

1.working capital turnover ratio=revenue from operations/working capital

Revenue from operations=7138.85,working capital=793.59

Working capital turnover ratio=9 times

Profitability ratio

1.Gross profit ratio=revenue from operations-operating and directing expenses/total

operating revenues X 100

Revenue from operations=85912,operating and directing expenses=13533,total operating

revenues=85912

Gross profit ratio=84.24%

2.Operating ratio=employee benefit+depreciation and amortization+other expenses/total

operating revenues X 100

Employee benefit=655.82,Depreciation and Ammortization=143.40,other

expenses=1272.89,total operating revenues=85912

Operating ratio=2.40%

CONCLUSION
Liquidity ratio

1.Current ratio

The current ratio for the year 2021 is 1.39:1.The ideal current ratio is 2:1.Here current ratio
is less than ideal ratio.Hence,we can say that the company is using its current assets
efficiently.

2.Quick Ratio

The quick ratio for the year 2021 is 1.37:1.The ideal quick ratio is 1:1.Here quick ratio is
more than ideal ratio,which implies some of the money is not used efficiently.

Solvency ratio

1.Debt to equity ratio

The debt to equity ratio for the year 2021 is 0.02:1.The ideal debt to equity ratio is
2:1.Here,it is less than 1.This implies that the owners have contributed the remaining
amount needed for the purchase of assets.
2.Total assets to debt ratio

The total assets to debt ratio for the year 2021 is 98.04.A high ratio means higher safety
cover for lenders.

Activity ratios

1.Working capital turnover ratio

The working capital turnover ratio for the year 2021 is 9 times.It is the ratio between the net
revenue or the turnover and the working capital of the business.It indicates how effectively
available funds for streamiled production of goods and services.

Profitability ratios

1.Gross profit ratio

The gross profit ratio for the year 2021 is 84.24%.It is a profitability ratio that compares the
gross profit of a company to its revenues.

2.Operating ratio for the year 2021 is 2.40.Oprating Ratio of a company’s operating
expenses as a percentage.Therefore, higher ratio would indicate that the company’s
expenses are more.