1. Company information

Dabur India Limited (the 'Company') is a domestic public
limited Company with registered office situated at 8/3,
Asaf Ali Road, New Delhi — 110002 and is listed on
the Bombay Stock Exchange Limited (BSE) and National
Stock Exchange of India (NSE). The Company is one
of the leading fast moving consumer goods (FMCG)
players dealing in consumer care and food products.
It has manufacturing facilities across the length and
breadth of the country and research and development
center in Sahibabad, U.P. and selling arrangements
primarily in India through independent distributors.
However, most of the institutional sales are handled
directly by the Company.

2. General information and statement of compliance
with Ind AS

These standalone financial statements ('financial
statements') of the Company have been prepared in
accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards ('Ind AS') specified under Section 133 of
the Companies Act, 2013 ('the Act') and other relevant
provisions of the Act. The Company has uniformly
applied the accounting policies during the periods
presented.

The financial statements are presented in Indian
Rupees ('?') which is also the functional currency of the
Company.

The financial statements for the year ended 31 March
2025 were authorized and approved for issue by the
Board of Directors on 07 May 2025. The revision to
the financial statements is permitted by the Board of
Directors after obtaining necessary approvals or at the
instance of regulatory authorities as per provisions of
the Act.

3. Basis of preparation

The financial statements have been prepared on going
concern basis in accordance with accounting principles
generally accepted in India. Further, the financial
statements have been prepared on historical cost basis
except for certain financial assets and financial liabilities

and share based payments which are measured at fair
values as explained in relevant accounting policies.

Amount in the financial statements are presented in '
crores, unless otherwise stated. Certain amounts that
are required to be disclosed and do not appear due to
rounding-off are expressed as 0.00.

4. Recent accounting pronouncements in Indian
Accounting Standards

Ministry of Corporate Affairs ('MCA') notifies new
standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as
issued from time to time.

For the year ended 31 March 2025, MCA has
amended/ notified certain accounting standards, which
are effective for annual reporting period beginning on
or after 01 April 2024. MCA vide notification dated
09 September 2024 and 28 September 2024 notified
the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024 and the Companies (Indian
Accounting Standards) Third Amendment Rules, 2024
respectively:

Ý Ind AS 117 - Insurance Contracts, this new standard
enacted for insurance contracts. Said enactment
does not have any impact on the financial
statements; and

Ý Ind AS 116 - Leases, Amendment relates to
subsequent accounting for seller-lessee in respect of
the sale and lease back transactions accounted for
as sale under Ind AS 115- Revenue from Contracts
with customers. The amendment does not have any
impact on the financial statements of the company.

5. Application of new or amended standards

As per Ind AS-1, the concept of 'Significant Accounting
Policies' has given way to 'Material Accounting Policies',
the latter enjoins disclosure of only accounting policies
in company specific context out of multiple options
granted under Ind AS for such treatments. Pursuant to
this the accounting policies have been divided into two
parts: -

Ý Material Accounting Policies

Ý Other Accounting Policies

5A. Material Accounting Policies

The financial statements have been prepared using the
material and other accounting policies and measurement
bases summarized below:

a. Revenue Recognition:

♦ Revenue from sale of products is recognized
when control of products being sold is transferred
to customer and when there are no longer
any unfulfilled obligations. The performance
obligations in contracts are considered as
fulfilled in accordance with the terms agreed with
the respective customers.

Revenue is measured at fair value of the
consideration received or receivable and is
accounted for net of returns, rebates and trade
discount. Sales, as disclosed, are exclusive of
goods and services tax.

The Company considers the terms of the
contract and its customary business practices to
determine the transaction price. The transaction
price is the amount of consideration to which
the Company expects to be entitled in exchange
for transferring promised goods to a customer,
excluding amounts collected on behalf of third
parties (for example taxes collected on behalf
of government). The consideration promised in
a contract with a customer may include fixed
consideration, variable consideration (if reversal
is less likely in future), or both.

The transaction price is allocated by the Company
to each performance obligation in an amount that
depicts the amount of consideration to which it
expects to be entitled in exchange for transferring
the promised goods to the customer.

For each performance obligation identified,
the Company determines at contract inception
whether it satisfies the performance obligation
over time or satisfies the performance obligation
at a point in time.

When either party to a contract has performed its
obligation, an entity shall present the contract in
the balance sheet as a contract asset or a contract
liability, depending on the relationship between
the entity's performance and the customer's
payment.

♦ Income from export incentives such as duty
drawback, premium on sale of import licenses

and lease license fee are recognized on accrual
basis when no significant uncertainties as to the
amount of consideration that would be derived
and as to its ultimate collection exist.

♦ Rental income is recognized on a straight-line
basis over the terms of the lease, except for
contingent rental income which is recognized
when it arises and where scheduled increase
in rent compensates the lessor for expected
inflationary costs.

♦ Interest income is recognized using effective
interest method.

♦ Dividend income is recognized at the time when
the right to receive is established by the reporting
date.

♦ Other incomes have been recognized on accrual
basis in the financial statements, except when
there is uncertainty of collection.

b. Property, Plant and Equipment:

Property, plant and equipment is stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. These tangible assets
are held for use in production, supply of goods or
services or for administrative purposes.

♦ Cost comprises purchase cost, freight, duties,
taxes and other expenses directly incidental to
acquisition, bringing the asset to the location and
installation including site restoration up to the
time when the asset is ready for intended use.
Such costs also include borrowing cost if the
recognition criteria are met.

♦ When a major inspection/repair occurs, its cost
is recognized in the carrying amount of the
property, plant and equipment as a replacement
if the recognition criteria are satisfied. Any
remaining carrying amount of the cost of
previous inspection/repair is derecognized. All
other repair and maintenance are recognized in
the Standalone Statement of Profit and Loss as
incurred.

♦ Depreciation on property, plant and equipment
is provided over the useful lives of assets as
specified in Schedule II to the Act except where
the management has estimated useful life of an
asset supported by the technical assessment,
external or internal, i.e., higher or lower from the
indicative useful life given under Schedule II. The
management believes that these estimated useful
lives are realistic and reflect fair approximation

The residual value and useful life is reviewed
annually and any deviation is accounted for as a
change in estimate.

♦ Components relevant to property, plant and
equipment, where significant, are separately
depreciated on straight line basis in terms of their
life span assessed by technical evaluation in item
specific context.

♦ For new projects, all direct expenses and direct
overheads (excluding services of non-exclusive
nature provided by employees in Company's
regular payroll) are capitalized till the assets are
ready for intended use.

♦ During disposal of property, plant and equipment,
any profit earned / loss sustained towards excess
/ shortfall of sale value vis-a-vis carrying cost of
assets is accounted for in Standalone Statement
of Profit and Loss.

c. Investment Property:

Properties held to earn rentals or / and for capital
appreciation or both but not for sale in the ordinary
course of business, use in the production or supply
of goods or services or for administrative purposes,
are categorized as investment properties. These are
measured initially at cost of acquisition, including
transaction costs and other direct costs attributable to
bringing asset to its working condition for intended use.
Subsequent to initial recognition, investment properties
are stated at cost less accumulated depreciation and
accumulated impairment loss, if any. The cost shall
also include borrowing cost if the recognition criteria
are met. Said assets are depreciated on straight line
basis based on expected life span of assets which is in
accordance with Schedule II of the Act.

Any gain or loss on disposal of investment properties
is recognized in Standalone Statement of Profit and
Loss.

Fair value of investments properties under each
category are disclosed under note 6C to the
standalone financial statements. Fair values are
determined based on the evaluation performed by
an accredited external independent valuer applying
a recognized and accepted valuation model or
estimation based on available sources of information
from market.

Transfers to or from the investment property is made
only when there is a change in use and the same is
made at the carrying amount of investment property.

d. Intangible Assets:

♦ Intangible assets acquired separately are
measured on initial recognition at cost of
acquisition. The cost comprises of purchase
price and directly attributable costs of bringing
the assets to its working condition for intended
use. Intangible assets arising on acquisition of
business are measured at fair value as at date
of acquisition. In case of internally generated
assets, measured at development cost subject to
satisfaction of recognition criteria (identifiability,
control and future economic benefit) in
accordance with Ind AS 38 'Intangible Assets'.

♦ Following initial recognition, intangible assets are
carried at cost less accumulated amortization and
accumulated impairment loss, if any.

♦ Intangible assets with finite lives are amortized
on a straight-line basis over the estimated useful
economic life. The amortization expense on
intangible assets with finite lives is recognized in
the Standalone Statement of Profit and Loss.

♦ Amortization of intangible assets such as software
is computed on a straight-line basis, at the rates
representing estimated useful life of up to 5 years.
The brands, trademarks and distribution network
acquired as part of business combinations normally
have an estimated useful life of up to 10 years.

e. Government Subsidy / Grants:

Government grant is recognized only when there is a
reasonable assurance that the entity will comply with
the conditions attached to them and the grants will
be received.

♦ Subsidy related to assets is recognized as
deferred income which is recognized in the
Standalone Statement of Profit and Loss on a
systematic basis over the useful life of the assets.

♦ Purchase of assets and receipts of related grants
are separately disclosed in Standalone Statement
of Cash Flow.

♦ Grants related to income are treated as other
operating income in Standalone Statement of
Profit and Loss subject to due disclosure about
the nature of grant.

f. Impairment of Financial Assets:

In accordance with Ind AS 109 'Financial
Instruments', the Company applies Expected Credit
Loss ('ECL') model for measurement and recognition
of impairment loss for financial assets. ECL is
the weighted-average of difference between all
contractual cash flows that are due to the Company
in accordance with the contract and all the cash flows
that the Company expects to receive, discounted at
the original effective interest rate, with the respective
risks of default occurring as the weights. When
estimating the cash flows, the Company is required
to consider:

♦ All contractual terms of the financial assets
(including prepayment and extension) over the
expected life of the assets;

♦ Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.

♦ Trade Receivables:

In respect of trade receivables, the Company
applies the simplified approach of Ind AS
109 'Financial Instruments', which requires
measurement of loss allowance at an amount
equal to lifetime expected credit losses. Lifetime
expected credit losses are the expected credit
losses that result from all possible default events
over the expected life of a financial instrument.

♦ Other Financial Assets:

In respect of its other financial assets, the
Company assesses if the credit risk on those

financial assets has increased significantly since
initial recognition. If the credit risk has not
increased significantly since initial recognition,
the Company measures the loss allowance at an
amount equal to 12-month expected credit losses,
else at an amount equal to the lifetime expected
credit losses.

When making this assessment, the Company
uses the change in the risk of a default occurring
over the expected life of the financial asset. To
make that assessment, the Company compares
the risk of a default occurring on the financial
asset as at the balance sheet date with the risk
of a default occurring on the financial asset as
at the date of initial recognition and considers
reasonable and supportable information, that
is available without undue cost or effort, that is
indicative of significant increases in credit risk
since initial recognition. The Company assumes
that the credit risk on a financial asset has not
increased significantly since initial recognition if
the financial asset is determined to have a low
credit risk at the balance sheet date.

g. Taxation:

Tax expense recognized in Standalone Statement of
Profit and Loss comprises the sum of deferred tax
and current tax except the ones recognized in other
comprehensive income or directly in equity.

Current tax is determined as the tax payable in respect
of taxable income for the year and is computed in
accordance with relevant tax regulations. Current
income tax relating to items recognized outside
profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity).

Current Tax for the period includes Minimum
Alternate Tax ('MAT') paid, credit entitlement
against which is recognised as Deferred Tax Asset
based on convincing evidence of applicability of
normal income tax in near future. Deferred tax so
created is reviewed at each year end for necessary
adjustment.

Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit
under Income-tax Act, 1961.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year

when the asset is realized or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting
date. Deferred tax relating to items recognized
outside Standalone Statement of Profit and Loss is
recognized outside Standalone Statement of Profit
and Loss (either in other comprehensive income or
in equity).

h. Share based payments - Employee Stock Option
Scheme ('ESOP'):

A section of employees of the Company and
its subsidiaries are entitled to equity-based
compensation of the nature of Equity Settled Share
Based Payment transaction.

The fair value of options granted under Employee
Stock Option Plan is recognized as an employee
benefits expense (net of recoveries from subsidiaries)
with a corresponding increase in equity. The total
amount to be expensed is determined by reference
to the fair value of the options determined under
Black-Scholes model. The total expense is recognized
over the vesting period, which is the period over
which all of the specified vesting conditions are to
be satisfied. At the end of each period, the entity
revises its estimates of the number of options that are
expected to vest based on the non-market vesting and
service conditions. It recognizes the impact of the
revision to original estimates, if any, in profit or loss,
with a corresponding adjustment to equity. Upon
exercise of share options, the proceeds received
are allocated to share capital up to the par value of
the shares issued with any excess being recorded
as share premium. If the options are forfeited or
not exercised after vesting date, related expenses
already recognized in statement of profit and loss
are not reversed but transferred to other component
within equity.

5B. Other Accounting Policies

The financial statements have been prepared using the

material and other accounting policies and measurement

bases summarized below:

a. Current / Non-current Classification:

All assets and liabilities have been classified as
current or non-current as per the Company's normal
operating cycle and other criteria set-out in the Act.
Deferred tax assets and liabilities are classified as
non-current assets and non-current liabilities, as

the case may be. The operating cycle is the time
between the acquisition of assets for processing and
their realisation in cash and cash equivalents.

b. Capital Work-in-progress and Intangible Assets
under Development:

Capital work-in-progress and intangible assets under
development represents expenditure incurred in
respect of capital projects / intangible assets under
development and are carried at cost. Cost comprises
purchase cost, related acquisition expenses,
development / construction costs, borrowing costs
and other direct expenditure.

c. Impairment of Non-financial Assets

At each reporting date, the Company assesses
whether there is any indication based on internal /
external factors, that an asset may be impaired. If
any such indication exists, the recoverable amount
of the asset or the cash generating unit ('CGU') is
estimated. If such recoverable amount of the asset
or CGU to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to
its recoverable amount and the reduction is treated
as an impairment loss and is recognized in the
Standalone Statement of Profit and Loss.

If, at the reporting date, there is an indication
that a previously assessed impairment loss no
longer exists or decline, the recoverable amount
is reassessed, and the asset is reflected at the
carrying amount that would have been determined
(net of amortization or depreciation) had no
impairment loss been recognized for the assets in
prior years or with reduced impairment provision.
Impairment losses previously recognized are
accordingly reversed in the Standalone Statement
of Profit and Loss. An asset is deemed impairable
when the recoverable value is less than its carrying
cost and the difference between the two represents
provisioning exigency.

d. Financial Instruments:

Initial recognition and measurement

Financial assets and financial liabilities are
recognized when the Company becomes a party to
the contractual provisions of the financial instrument
and are measured initially at fair value adjusted for
transaction costs, except for those carried at fair
value through profit or loss which are measured
initially at fair value. Subsequent measurement of

financial assets and financial liabilities is described
below:

Non-derivative Financial Assets

Subsequent measurement

♦ Financial Assets carried at Amortized Cost

A financial asset is measured at the amortized
cost, if both the following conditions are met:

a. The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows; and

b. Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest ('SPPI') on
the principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortized cost
using the effective interest rate ('EIR') method.

♦ Investments in Equity Instruments of
Subsidiaries and Joint Ventures

Investments in equity instruments of subsidiaries
and joint ventures are accounted for at cost in
accordance with Ind AS 27 'Separate Financial
Statements'.

♦ Investments in Other Equity Instruments

Investments in equity instruments which are held
for trading are classified as at fair value through
profit or loss ('FVTPL'). For all other equity
instruments, the Company makes an irrevocable
choice upon initial recognition, on an instrument
by instrument basis, to classify the same either as
at fair value through other comprehensive income
('FVTOCI') or FVTPL. Amounts presented in other
comprehensive income are not subsequently
transferred to profit or loss. However, the
Company transfers the cumulative gain or loss
within equity. Dividends on such investments are
recognized in profit or loss unless the dividend
clearly represents a recovery of part of the cost
of the investment.

♦ Debt Instruments

Debt instruments are initially measured at amortized
cost, FVTOCI or FVTPL till de-recognition on the
basis of:

i. the entity's business model for managing the
financial assets; and

ii. the contractual cash flow characteristics of the
financial asset.

a. Measured at Amortized Cost

Financial assets that are held within a business
model whose objective is to hold financial
assets in order to collect contractual cash
flows that are solely payments of principal
and interest, are subsequently measured at
amortized cost using the EIR method less
impairment, if any. The amortization of EIR
and loss arising from impairment, if any, is
recognized in the Standalone Statement of
Profit and Loss.

b. Measured at Fair Value through other
Comprehensive Income

Financial assets that are held within a
business model whose objective is achieved
by both, selling financial assets and
collecting contractual cash flows that are
solely payments of principal and interest,
are subsequently measured at FVTOCI. Fair
value movements are recognized in the
other comprehensive income ('OCI'). Interest
income measured using the EIR method and
impairment losses, if any are recognized in
the Standalone Statement of Profit and Loss.
On de-recognition, cumulative gain or loss
previously recognized in OCI is reclassified
from the equity to 'other income' in the
Standalone Statement of Profit and Loss.

c. Measured at Fair Value through Profit or
Loss

A financial asset not classified as either
amortized cost or FVTOCI, is classified as
FVTPL. Such financial assets are measured
at fair value with all changes in fair value,
including interest income and dividend
income, if any, recognized as 'other income'
in the Standalone Statement of Profit and Loss.

♦ Investments in Mutual Funds

Investments in mutual funds are measured at
FVTPL.

De-recognition of financial assets

A financial asset is primarily de-recognized
when the contractual rights to receive cash flows
from the asset have expired or the Company has

transferred its rights to receive cash flows from
the asset.

Non-derivative Financial Liabilities

Subsequent measurement

Subsequent to initial recognition, all non-derivative
financial liabilities are measured at amortised cost
using the effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognized when the
obligation under the liability is discharged or
cancelled or expired. When an existing financial
liability is replaced by another from the same
lender on substantially different terms or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the de-recognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognized in the Standalone Statement of Profit
and Loss.

Derivative Financial Instruments

The Company holds derivative financial
instruments in the form of future contracts to
mitigate the risk of changes in exchange rates on
foreign currency exposure. The counterparty for
these contracts are scheduled commercial banks
/ regulated brokerage firms.

Although these derivatives constitute hedges
from an economic perspective, they do not
qualify for hedge accounting under Ind AS
109 'Financial Instruments' and consequently
are categorized as financial assets or financial
liabilities at FVTPL. The resulting exchange gain
or loss is included in other income / expenses
and attributable transaction costs are recognized
in the Standalone Statement of Profit and Loss
when incurred.

♦ Financial Guarantee Contracts

Financial guarantee contracts are those contracts
that require a payment to be made to reimburse
the holder for a loss it incurs because the
specified party fails to make a payment when
due in accordance with the terms of a debt
instrument. Financial guarantee contracts are
recognized as a financial liability at the time the
guarantee is issued at fair value, adjusted for

transaction costs that are directly attributable to
the issuance of the guarantee. Subsequently, the
liability is measured at the higher of the amount
of expected loss allowance determined as per
impairment requirements of Ind AS 109 'Financial
Instruments' and the amount recognized less
cumulative amortization.

♦ Offsetting of Financial Instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the Standalone
Balance Sheet if there is a currently enforceable
legal right to offset the recognized amounts and
there is an intention to settle on a net basis,
to realize the assets and settle the liabilities
simultaneously.

e. Fair Value Measurement:

The Company measures financial instruments, such
as, derivatives at fair value at each Standalone
Balance Sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

♦ In the principal market for the asset or liability; or

♦ In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming
that market participants act in their economic best
interest.

A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data is available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy,
described as follows, based on the lowest level input
that is significant to the fair value measurement as a
whole:

Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognized in
the financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

The Company's management determines the
policies and procedures for both recurring fair value
measurement, such as derivative instruments and
unquoted financial assets measured at fair value, and
for non-recurring measurement, such as assets held
for distribution in discontinued operations.

f. Leases:

Where the Company is the lessee

Right of use assets and lease liabilities

A lease is defined as 'a contract, or part of a
contract, that conveys the right to use an asset (the
underlying asset) for a period of time in exchange
for consideration'. The Company enters into leasing
arrangements for various assets. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset
(ii) the Company obtains substantially all of the
economic benefits from use of the asset through the
period of the lease and (iii) the Company has the
right to direct the use of the asset.

Recognition and initial measurement

At lease commencement date, the Company
recognizes a right-of-use asset and a lease liability

on the balance sheet. The right-of-use asset is
measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct
costs incurred by the Company, an estimate of any
costs to dismantle and remove the asset at the end
of the lease (if any), and any lease payments made
in advance of the lease commencement date (net of
any incentives received).

Subsequent measurement

The Company depreciates the right-of-use assets on
a straight-line basis from the lease commencement
date to the earlier of the end of the useful life of
the right-of-use asset or the end of the lease term.
The Company also assesses the right-of-use asset for
impairment when such indicators exist.

At lease commencement date, the Company
measures the lease liability at the present value of
the lease payments unpaid at that date, discounted
using the interest rate implicit in the lease if that rate
is readily available or the Company's incremental
borrowing rate. Lease payments included in the
measurement of the lease liability are made up
of fixed payments (including in substance fixed
payments) and variable payments based on an
index or rate. Subsequent to initial measurement,
the liability will be reduced for payments made and
increased for interest. It is re-measured to reflect
any reassessment or modification, or if there are
changes in in-substance fixed payments. When the
lease liability is re-measured, the corresponding
adjustment is reflected in the right-of-use asset.

The Company has elected to account for short¬
term leases and leases of low-value assets using
the practical expedients. Instead of recognizing a
right-of-use asset and lease liability, the payments in
relation to these are recognized as an expense in
standalone statement of profit and loss on a straight¬
line basis over the lease term.

Where the Company is the lessor

Leases in which the Company does not transfer
substantially all the risks and rewards of ownership
of an asset are classified as operating leases. Rental
income from operating lease is recognized on a
straight-line basis or another systematic basis as per
the terms of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased
asset and recognized over the lease term on the

same basis as rental income. Contingent rents are
recognized as revenue in the period in which they
are earned.

Leases are classified as finance leases when
substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts
due from lessees under finance leases are recorded
as receivables at the Company's net investment in
the leases. Finance lease income is allocated to
accounting periods so as to reflect a constant periodic
rate of return on the net investment outstanding in
respect of the lease.

g. Inventories:

Inventories are valued at the lower of cost or net
realizable value. Cost includes purchase price,
duties, transport, handing costs and other costs
directly attributable to the acquisition and bringing
the inventories to their present location and
condition. Net realisable value is the estimated
selling price in the ordinary course of business less
the estimated costs of completion and the estimated
costs necessary to make the sale.

The basis of determination of cost is as follows:

♦ Raw material, packing material and stock-in-trade
valued on moving weighted average basis;

♦ Stores and spares valued on weighted average
basis;

♦ Work-i n-progress valued at cost of input valued at
moving weighted average basis plus overheads
up till the stage of completion; and

♦ Finished goods valued at cost of input valued at
moving weighted average basis plus appropriate
overheads.

h. Employee Benefits:

Liabilities in respect of employee benefits to
employees are provided for as follows:

♦ Current Employee Benefits

a. Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognized in
respect of employees' services up to the end
of the reporting period and are measured at
the amounts expected to be incurred when
the liabilities are settled. The liabilities are

presented as current employee dues payable
in the Standalone Balance Sheet.

b. Employees' State Insurance ('ESI') is provided
on the basis of actual liability accrued and
paid to authorities.

c. The Company has adopted a policy on
compensated absences which are both
accumulating and non-accumulating in
nature. The expected cost of accumulating
compensated absences is determined
by actuarial valuation performed by an
independent actuary at each balance sheet
date using projected unit credit method on
the additional amount expected to be paid /
availed as a result of the unused entitlement
that has accumulated at the balance sheet date.
Expense on non-accumulating compensated
absences is recognized in the period in which
the absences occur.

d. Expense in respect of other short-term benefits
is recognized on the basis of the amount
paid or payable for the period during which
services are rendered by the employee.

♦ Post Separation Employee Benefit Plan

a. Defined Benefit Plan

Ý Post separation benefits of Directors are
accounted for on the basis of actuarial
valuation as per Ind AS 19 'Employee
Benefits'.

Ý Gratuity liability accounted for on the basis
of actuarial valuation as per Ind AS 19
'Employee Benefits'. Liability recognized
in the Standalone Balance Sheet in respect
of gratuity is the present value of the
defined benefit obligation at the end of
each reporting period less the fair value of
plan assets. The defined benefit obligation
is calculated annually by an independent
actuary using the projected unit credit
method. The present value of defined
benefit is determined by discounting the
estimated future cash outflows by reference
to market yield at the end of each reporting
period on government bonds that have
terms approximate to the terms of the
related obligation. The net interest cost is
calculated by applying the discount rate
to the net balance of the defined benefit

obligation and the fair value of plan assets.
This cost is included in employee benefit
expense in the Standalone Statement of
Profit and Loss.

Ý The Company contributes its share of
contribution to Employees' Provident
Fund Scheme administered by a separate
trust with its obligation to make good the
shortfall, if any, in trust fund arising on
account of difference between the return
on investments of the trust and the interest
rate on provident fund dues notified
periodically by the Central Government and
any expected loss in investment. Liability
recognized in the Standalone Balance
Sheet in respect of Dabur India E.P.F trust
is the present value of the defined benefit
obligation at the end of each reporting
period less the fair value of plan assets on
the basis of actuarial valuation using the
projected unit credit method.

Ý Actuarial gain / loss pertaining to gratuity,
post separation benefits and PF trust are
accounted for as OCI. All remaining
components of costs are accounted for in
Standalone Statement of Profit and Loss.

b. Defined Contribution Plans

Liability for superannuation fund is provided
on the basis of the premium paid to insurance
company in respect of employees covered
under Superannuation Fund Policy.