DABUR NEPAL PRIVATE LIMITED

directors report

to the members of Dabur Nepal Private Limited

This report has been prepared for the purpose of annexing the Annual Accounts of the Company with the Annual Accounts of Dabur India Ltd., the holding company. The report is based on the performance of the Company during the period 1st April, 2002 to 31st March, 2003. The financial year of the Company will end on 16th July, 2003 as per the Nepali Law. Financial Results The financial results for the Companys working are as follows: (Nrs in Lacs) 2002-03 Turnover including other income Profit after depreciation and before provisions Less: Provision for housing facility Less: Provision for Bonus Less: Provision for Income Tax Net Profit after Tax Add : Balance in Profit & Loss Account brought forward from the previous year Profit available for appropriation Appropriation Interim Dividend Transfer to General Reserve Balance carried to Balance Sheet Operations The turnover of the Company has increased by 5.51% over the previous year. Due to higher income tax, the Net Profit after tax has reduced by 9.15% over the previous year. The profitability has also come down because of pressure on margins due to competition. During the year the gross block of the Company has increased by Rs. 11.16 crore (net of sale). Out of this the major amount is towards expansion of Vatika Shampoo, Hajmola tablet, Taxin Resin, Lemoneez, common utilities and furnitures. During the year under review, your Company has started export of Pachan Churan, DCP Mishran and Lemoneez to India and Vatika Shampoo and fruit juice to Australia. 28025.67 2311.63 115.58 219.61 454.58 1521.86 3766.19 5266.07 319.41 100.00 4846.66 5266.07 2001-02 25351.70 2190.82 109.54 208.13 198.00 1675.15 2510.45 4185.60 319.41 100.00 3766.19 4185.60

Expansion / Modernization Program During the year, your Company has modernized the Hajmola tablet plant by replacing old machines by new higher capacity machines. It has also installed new Lemoneez plant and has commenced commercial production for the same. It has increased the capacity of Vatika hair oil based on higher demand from India. Your Company has also planned to manufacture two new products namely, Lal Dant Manjan toothpaste and Anmol Shampoo during the current financial year. It has also initiated plan to increase the capacity of fruit juice during the current year. Investment During the year, your Company sold its investment in 5-year 5% Government Bond at discount. The money realised has been used into Working Capital. Fresh 5-year 5% Government Bond 2064 has been received in part settlement of Companys claim with HMG of Nepal for Customs Duty Drawback. The Medicinal Plant Project During the year the Nursery project has started harvesting some of the crops like Akarkara, Satavari and Stevia. Some of the harvested crops have been used inhouse, while remaining have potential market in India and abroad. Dividend An interim dividend of Rs. 40.00 per equity share was declared in March 2003. Acknowledgement The Directors wish to place on record their appreciation for the continued support and co-operation extended by Dabur India Ltd., Shareholders, Dealers, Customers and all the employees of the Company. They also wish to place on record their sincere appreciation for the co-operation, assistance and guidance received from various officers of the His Majestys Government of Nepal and Government of India.

On behalf of the Board of Directors Kathmandu, Nepal 4th May, 2003 A.C. BURMAN Chairman

auditors report
ended on that date and report that :1)

to the shareholders of Dabur Nepal Private Limited

information required by the Companies Act, 2053, in the manner so required and give a true and fair view: a) In the case of Balance Sheet of the State of Affairs of the Company as at 31st March, 2003, and b) . For J.P. KHANDELWAL & CO. Chartered Accountants In the case of Profit and Loss Account of the Profit for the year ended on that date.

We have audited the attached Balance Sheet of Dabur Nepal (P) Ltd. as at 31st March, 2003 and its Profit & Loss Account and Cash Flow Statement for the year

We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of audit.

2)

In our opinion, proper books of account, as required by law have been kept by the Company so far as appears from our examination of books of account.

3)

The Balance Sheet and Profit and Loss Account dealt with by this Report are in agreement with the books of account.

4)

In our opinion and according to the information and explanations given to us, the said accounts subject to notes appearing in Schedule O give the

Birgunj, Nepal 4th May, 2003

J.P. KHANDELWAL Proprietor

Annu al Rep o r t 2002-03

97

DABUR NEPAL PRIVATE LIMITED

balance sheet
SOURCES OF FUNDS Shareholders Funds A) Share Capital B) Reserves & Surplus Loan Funds A) Secured Loans B) Unsecured Loans TOTAL

as at 31st march, 2003

Schedule A 798.52 6005.96 B 7952.44 4077.00 12029.44 18833.92 C 12605.12 4235.54 D E 5936.81 2121.03 30.03 1516.34 4835.98 14440.19 F 3241.81 1279.78 4521.59 9918.60 5.48 18833.92 O 3579.81 836.40 4416.21 8108.10 28.68 16561.36 8369.58 540.26 5527.52 1965.78 36.37 1160.70 3833.94 12524.31 11488.86 3175.74 8313.12 111.46 6597.85 4339.50 10937.35 16561.36 6804.48 798.52 4825.49 5624.01 2002-03 Nrs. in Lacs 2001-02 Nrs. in Lacs

APPLICATION OF FUNDS Fixed Assets A) Gross Block B) Less: Depreciation C) Net Block Investments Current Assets, Loans & Advances A) Inventories B) Sundry Debtors C) Cash & Bank Balances D) Loans and Advances E) Deposits and Other Receivables Less : Current Liabilities & Provisions A) Liabilities B) Provisions Net Current Assets Pre-Operative & Misc. Expenditure (To the Extent Not Written off or Adjusted) TOTAL Accounting Policies

profit & loss account for the year ended 31st march, 2003
Schedule INCOME Sales Other Income EXPENDITURE Cost of Materials Manufacturing Expenses Gross Profit Payments & Benefits to Employees Administrative & Selling Expenses Financial Expenses Amortisation of Miscellaneous Expenses Depreciation Net Profit Before Extraordinary Items Loss on Sale of Fixed Assets Net Profit Before Provisions Provision for Housing Provision for Bonus Net Profit Before Taxation Provision for Taxation Net Profit After Tax Surplus B/F from Previous Year Income Tax Adjustment for Previous Years Profit Available for Appropriation Appropriation / Allocation General Reserve Interim Dividend Balance Carried Over to Balance Sheet Accounting Policies Earning Per Share (in Nrs.) Basic Diluted No. of Shares Basic Diluted A. C. BURMAN Chairman Birgunj, Nepal 4th May, 2003 O 190.58 798520 209.78 798520 G H I J K L M N 27961.79 63.88 19654.45 1422.36 690.77 1608.86 1234.36 23.21 1076.14 2002-03 Nrs. in Lacs 28025.67 21076.81 6948.86 25283.94 67.74 17563.85 1231.21 623.42 1320.31 1298.99 18.96 1028.93 2001-02 Nrs. in Lacs 25351.68 18795.06 6556.62

4633.34 2315.52 3.89 2311.63 115.58 219.61 1976.44 454.58 1521.86 3766.19 21.98 5266.07 100.00 319.41 4846.66 5266.07

4290.61 2266.01 75.19 2190.82 109.54 208.13 1873.15 198.00 1675.15 2510.45 4185.60 100.00 319.41 3766.19 4185.60

R. S. RANA Managing Director A. MEHRA Chief Financial Controller & Co. Secretary

T. K. GUPTA Director S. K. DUDHORIA Head - Management Accounting

As per our report of even date attached For J. P. KHANDELWAL & CO. Chartered Accountants J. P. KHANDELWAL Proprietor

98

Dabur Subsidiaries

DABUR NEPAL PRIVATE LIMITED

schedules annexed to and forming part of the balance sheet

Schedule A - Shareholders Fund
Share Capital Authorised 1400000 Equity Shares of Rs.100 each (Previous Year : 1400000 Equity Shares of Rs.100 each) Issued 800000 Equity Shares of Rs. 100 each (Previous Year : 800000 Equity Shares of Rs. 100 each) Subscribed & Paid up 798520 Equity Shares of Rs.100 each Fully Paid up (Previous Year : 798520 Equity Shares of Rs.100 each) Reserves & Surplus Share Premium Reserve General Reserve Profit and Loss Account 2002-03 Nrs. in Lacs 2001-02 Nrs. in Lacs

Schedule B - Loan Funds (Contd.)

Trust Receipt Loans Nabil Bank Ltd. Standard Chartered Bank Nepal Ltd.

2002-03 Nrs. in Lacs 290.34 647.03 937.37 308.99 252.45

2001-02 Nrs. in Lacs

1400.00

1400.00 Term Loans Nepal SBI Bank Ltd.

561.44 141.60

800.00 800.00 Other Long Term Loans Deferred Payment (Secured by hypothecation over machineries imported under the said facility) Unsecured Loans Nabil Bank Ltd. Standard Chartered Bank Nepal Ltd. Nepal SBI Bank Ltd. Others (from a Director ) 334.63

141.60 453.46

7952.44 798.52 600.00 559.30 4846.66 6005.96 798.52 600.00 459.30 3766.19 4825.49 937.50 1937.50 1125.00 77.00 4077.00

6597.85 1000.00 2137.50 1125.00 77.00 4339.50

Schedule B - Loan Funds

Secured Loans Working Capital Loans Nabil Bank Ltd. Standard Chartered Bank Nepal Ltd. Nepal SBI Bank Ltd. Interest Accrued & Due 3034.93 2172.98 1374.05 6581.96 98.48 3102.19 1946.89 390.79 5439.87 1.48

(All the above loans are secured by execution of registered mortgage by deposit of title deeds of Companys entire land situated at Rampur Tokani, Bara district and the entire immovable properties, present & future,built thereon, and hypothecation & assignment of entire current assets, present and future, ranking pari - passu amongst Nabil Bank Ltd., Standard Chartered Bank Nepal Ltd. and Nepal SBI Bank Ltd., subject to the priorities that Banks extending term loans (except that which is covered by guarantees of Indian Banks) shall have first charge on the fixed assets and second charge on current assets while the participating banks extending working capital, overdraft and cash credit shall have paripassu first charge on the current assets and second charge on fixed assets; and are further secured by a corporate guarantee by the companys parent Company, Dabur India Ltd., New Delhi, India and by personal guarantee by a Director of the Company.) Nrs. in Lacs

Schedule C - Fixed Assets

Name of Assets Depreciation (%) Land Land for Housing Colony (Brj) Building, Roads & Bridges Workers Quarter Plant & Machinery Furniture & Fixture Tools & Implements Laboratory Equipment Electrical Installation Vehicles Office Equipment Capital Work-in-Progress Total 5.00 5.00 15.00 25.00 15.00 25.00 15.00 20.00 25.00 As on 31.03.02 495.18 102.86 2365.87 104.37 6672.37 336.31 255.66 88.20 484.74 304.04 231.95 47.31 11488.86 GROSS BLOCK Additions 2002-2003 60.56 112.96 24.88 508.64 120.50 21.09 5.54 23.36 49.82 70.53 269.52 1267.40 Adjustment 2002-2003 1.63 23.59 2.63 123.29 151.14 As on 31.03.03 495.18 163.42 2478.83 129.25 7181.01 455.18 276.75 93.74 508.10 330.27 299.85 193.54 12605.12 As on 31.03.02 377.45 17.01 2200.43 94.57 84.76 30.00 181.65 113.10 76.77 3175.74 DEPRECIATION For the year 2002-2003 102.73 5.05 719.92 67.56 27.71 15.75 47.79 40.77 48.86 1076.14 Adjustment 2002-2003 0.85 14.14 1.35 16.34 As on 31.03.03 480.18 22.06 2920.35 161.28 112.47 45.75 229.44 139.73 124.28 4235.54

NET BLOCK As on 31.03.02 495.18 102.86 1988.42 87.36 4471.94 241.74 170.90 58.20 303.09 190.94 155.18 47.31 8313.12 As on 31.03.03 495.18 163.42 1998.65 107.19 4260.66 293.90 164.28 47.99 278.66 190.54 175.57 193.54 8369.58

Notes : 1. Capital Work-in-Progress includes Capital Advance of Nrs. 8.23 Lacs ( Previous Year Nrs. Nil ) 2. Addition during the year includes Nrs. 1.83 Lacs (Previous Year Nrs. 6.73) on account of Fluctuation In Rate of Exchange.

Schedule D - Investments
5% Special Bonds 2063 5% Special Bonds 2064

2002-03 Nrs. in Lacs 2.20 538.06 540.26

2001-02 Nrs. in Lacs 111.46 111.46

Schedule E - Current Assets, Loans and Advances (Contd.)

Cash & Bank Balances Cash in Hand Balance with Banks

2002-03 Nrs. in Lacs 3.56 26.47 30.03

2001-02 Nrs. in Lacs 7.40 28.97 36.37

Schedule E - Current Assets, Loans and Advances

Inventories (As taken,valued and certified by the management) Raw Materials Packing Materials Stores and Spares Stock in Process Finished Goods Sundry Debtors (Unsecured, Considered Good) Over Six Months Others

3573.65 1483.87 233.52 139.41 506.36 5936.81

3338.28 1183.25 257.17 235.58 513.24 5527.52

152.20 1968.83 2121.03

152.35 1813.43 1965.78

Loans & Advances (Unsecured considered good unless otherwise stated) Advances Recoverable in Cash or Kind or for values to be recovered Advance to Employees 263.56 239.79 Advance to Suppliers 511.20 440.09 Margin money with Bank 30.73 24.78 Prepaid Expenses 65.57 61.90 Advance Income Tax 390.91 224.99 Other Advances 254.37 169.15 1516.34 Deposits and Other Receivables Security Deposit 31.06 28.44 Vat Deposit 1016.77 768.71 Custom Duty Drawback Receivable 1740.60 1959.78 Local Development Tax Deposit 255.24 265.16 Excise Duty Deposit 60.00 Bonds Receivable 86.98 Custom Duty & Special Duty Deposit 1613.42 792.09 Insurance Claim 31.91 19.76 4835.98 14440.19

1160.70

3833.94 12524.31

Annu al Rep o r t 2002-03

99

DABUR NEPAL PRIVATE LIMITED

schedules

annexed to and forming part of the balance sheet

Schedule F - Current Liabilities & Provisions

Liabilities Creditors for Goods Acceptances Creditors for Exps. & other Liabilities Interest Accrued but not Due Advance Against Supplies & Expenses Provisions Provision for Housing Provision for Bonus Provision for Gratuity Provision for Earned Leave Salary Provision for Taxation 1404.90 1098.31 598.12 107.65 32.83

2002-03 Nrs. in Lacs 1030.11 1105.37 1292.41 142.95 8.97 3241.81 484.67 104.46 77.84 9.04 603.77 1279.78 4521.59 369.07 96.31 61.02 23.16 286.84

2001-02 Nrs. in Lacs

3579.81

836.40 4416.21

schedules
Schedule G - Sales
Domestic Sales Export Sales

annexed to and forming part of the profit and loss account

2002-03 Nrs. in Lacs 2173.97 25787.82 27961.79 2001-02 Nrs. in Lacs 1741.95 23541.99 25283.94 8.57 59.17 67.74

Schedule L - Administrative & Selling Expenses

Postage & Telephone Charges Vehicle Running Expenses Travelling Expenses Legal & Professional Charges Insurance Auditors Remuneration : - Statutory Audit Fee - Internal Audit Fee - Tax Audit Fee Selling & Distribution Expenses Advertisement Royalty Excise Duty Rent Printing & Stationery Guest House Expenses Books & Periodicals Entertainment Expenses Donation & Subscription General Charges Directors Sitting Fee Watch & Ward Expenses Business Development Expenses Other Administrative Expenses

2002-03 Nrs. in Lacs 100.82 96.67 154.11 37.26 48.03 1.40 2.61 0.40

2001-02 Nrs. in Lacs 101.92 91.43 115.76 29.23 48.94 1.00 1.76 0.25

Schedule H - Other Income

Interest Received Scrap Sales Dividend Received Rent Received Loss on Sale of Bonds (Received Against Custom Duty Draw Back) 11.43 81.16 4.40 0.36 -33.47 63.88

4.41 326.33 288.89 112.12 20.36 142.94 21.61 7.76 22.99 16.38 34.09 27.37 34.12 43.02 69.58 1608.86

3.01 248.76 226.65 103.20 2.99 132.27 19.07 10.41 16.90 13.67 18.58 15.67 0.17 35.38 39.23 47.07 1320.31

Schedule I - Cost of Materials

Cost of Materials Consumed Raw Material : Opening Stock Purchase Less : Closing Stock Raw Material Consumed Packing Material : Opening Stock Purchase Less : Closing Stock Packing Material Consumed Work In Process : Opening Stock Less : Closing Stock Cost of Materials Consumed Cost of Goods Sold Cost of Materials Consumed Adjustment of Finished Goods Stock : Opening Stock Less : Closing Stock 3338.28 14633.19 3573.65 1183.25 5454.20 1483.87 3508.10 13040.10 3338.28 958.07 4652.48 1183.25

14397.82

13209.92

5153.58

4427.30

235.58 139.41

96.17 19647.57 19647.57

252.83 235.58

17.25 17654.47 17654.47

Schedule M - Financial Expenses

Interest Term Loans Working Capital Loans Bank Charges 534.38 528.53 483.53 657.41

513.24 506.36

6.88 19654.45

422.62 513.24

-90.62 17563.85

1062.91 171.45 1234.36

1140.94 158.05 1298.99

Schedule J - Manufacturing Expenses

Power & Fuel Repair & Maintenance (Machinery) Repair & Maintenance (Building) Repair & Maintenance (Others) Consumable Stores Custom Duty (Others) Manufacturing Expenses Laboratory Expenses Nursery Expenses Cartage & Coolie Apiculture Expenses 650.77 280.74 50.22 76.27 123.71 61.23 77.03 8.37 50.43 36.03 7.56 1422.36 646.93 208.95 25.77 62.72 99.22 37.11 59.20 8.83 42.83 38.92 0.73 1231.21

Schedule N - Amortisation of Miscellaneous Expenses

Preliminary Expenses Written Off Technology Fees Written Off 16.88 6.33 23.21 12.37 6.59 18.96

Schedule O - Notes to Accounts

A) ACCOUNTING POLICIES : Significant accounting policies are summarized below : 1. Accounting Convention : The accounts have been prepared in accordance with the historical cost convention. 2. Fixed Assets & Depreciation : Fixed Assets are stated at cost less depreciation. Capital work -in-progress include advances on capital account. Cost include inward freight, duties and expenses incidental to acquisition and installation of the Assets. Depreciation is provided on diminishing balance method at the rate prescribed in the Income Tax Regulation 2049 upto 31st March, 2002 and wef 1st April, 2002, as per rates prescribed in the Income Tax Act 2058. Pro-rata depreciation has been provided on the assets added/disposed during the year as decided by the management. 3. Inventories : Stocks are valued at : Raw Materials, Packing Materials At cost on FIFO basis. and stores and spares. Work -in-process : At cost including proportionate factory overhead. Finished Goods : At lower of cost including proportionate factory overhead or net realizable value.

Schedule K - Payments & Benefits to Employees

Salaries & Allowances Wages & Workmen Welfare Staff Welfare Expenses Gratuity Directorss Remmuneration Employers Share To P.F. 296.68 232.41 102.72 18.67 18.48 21.81 690.77 270.58 198.77 91.64 28.36 15.43 18.64 623.42

100

Dabur Subsidiaries

DABUR NEPAL PRIVATE LIMITED

schedules

annexed to and forming part of the accounts

2002-03 Nrs. In Lacs 21.23 3.88 99.95 101.29 19.27 14.84 43.17 59.76 0.17 2.37 103.97 2001-02 Nrs. In Lacs 16.85 1.67 5.67 0.74 13.04 27.94 0.06 22.88 1.55 6.71 5.90 2.90 15.60 1.40 22.14 312.36

4. Investments : Investments are shown at cost. Dividend income is accounted for on receipt basis. 5. Income : Sales are accounted for on the basis of passing of title to the goods to the buyer. Local Sales comprise of sale price of goods excluding VAT. 6. Pre-operative and Miscellaneous Expenditure : Technical know-how fees paid to technical collaborator are amortised over a period of five years. Pre-operative expenses incurred before the commercial production of new projects are amortised over period of five years. 7. Foreign Currency Translation : Transactions in foreign currencies are translated at the exchange rates prevailing on the dates of transactions and in case of purchase of materials and sales of goods, the exchange gain/ losses on the settlement during the year are adjusted to Profit and Loss Account. Current assets & current liabilities denominated in foreign currencies are translated at contracted rates where covered by forward contracts and in other cases, at the rates prevailing on the date of the Balance Sheet, the resultant exchange gain / loss are deal in the Profit & Loss Account. 8. Retirement Benefits : Contributions in respect of provident fund are invested in Fixed Deposits with Banks. Gratuity provision has been made on accrued basis. Provision for leave encashment has been made on accrued basis. B) BALANCE SHEET AND PROFIT & LOSS ACCOUNT 1. Acceptances denote liabilities for suppliers bills accepted / discounted. 2. Contingent Liabilities : In respect of i) Letter of Credit : Nrs. 1721.24 Lacs ( Previous Year Nrs. 1832.82 lacs ) ii) Bill Discounted : Nrs. 287.68 Lacs (Previous Year Nrs. 510.09 lacs) iii) Bank Guarantee executed : Nrs. 137.44 Lacs (Previous Year Nrs. 194.89 lacs) iv) IT in appeal : Nrs. 1.69 Lacs (Previous Year Nrs. 1.69 lacs) v) Dividend Tax in appeal : Nrs. 78.65 Lacs (Previous Year Nrs. 78.65 lacs) vi) Custom duty dispute : Nrs. Nil Lacs (Previous Year Nrs. 10.33 lacs) 3. Nrs.112.12 lacs (Previous Year Nrs. 103.20 lacs) has been provided as Royalty payable to Dabur India Limited during the year as per Joint Venture Agreement . 4. Nrs. 1740.60 lacs (Previous Year Nrs. 1959.78 lacs) is receivable against Custom Duty Draw Back from HMG of Nepal against export of Goods. 5. Out of total provision of Nrs. 484.67 lacs (Previous Year Nrs. 369.07 lacs) for housing up to the financial year 2002-03, Rs.163.42 lacs (Previous Year Nrs. 102.86 lacs) has been spent for purchase of land for employees housing colony and Nrs. 129.26 lacs (Previous Year Nrs. 104.38 lacs) has been spent for construction of workers quarter. 6. Previous Years figures have been re-grouped wherever necessary. C) QUANTITATIVE DETAILS OF MAJOR PRODUCTS Unit 1. PRODUCTION Lal Dant Manjan Binaca Tooth Powder Vatika Hair Oil Vatika Shampoo Amla Hair Oil Baby Olive Oil Special Hair Oil Hajmola Tablet Hajmola Candy Real Fruit Juice Glucose D Powder Kshudhavardhak Churan Pachan Churan Chywanprash Prakshep DCP Mishran Dantshakti/ Dantmukta Taxin Resin Honey SALES Lal Dant Manjan Binanca Tooth Powder Vatika Hair Oil Vatika Shampoo Amla Hair Oil Special Hair Oil Baby Olive Oil Hajmola Tablet Hajmola Candy Real Fruit Juice Glucose D Powder Kshudhavardhak Churan Pachan Churan Chywanprash Prakshep DCP Mishran Dantshakti/ Dantmukta Taxin Resin Honey Qty 2002-03 Nrs. In Lacs 3620.03 660.71 2791.36 2788.61 119.77 35.78 3018.93 146.41 5751.86 714.36 428.08 325.58 1395.45 740.96 3701.17 603.15 1077.04 Qty 2001-02 Nrs. In Lacs 3762.06 16.95 181.27 1711.03 1603.91 90.53 188.66 3298.82 193.27 4530.41 491.44 980.08 2359.35 3664.18 858.59 1232.90

Unit 3. CLOSING STOCK Lal Dant Manjan Binaca Tooth Powder Vatika Hair Oil Baby Olive Oil Vatika Shampoo Amla Hair Oil Special Hair Oil Hajmola Tablet Hajmola Candy Real Fruit Juice Glucose D Powder Kshudhavardhak Churan Pachan Curan Chyawanprash Prakshep DCP Mishran Dantshkti / Dant Mukta Taxin Resin Honey Cases Cases Cases Cases Cases Cases Cases Cases Cases Cases Cases MT MT MT MT MT MT MT

Qty 2920 469 12931 15829 2075 1679 11598 6236 0.17 0.28 0.33 94.93

Qty 2669 202 803 46 2171 5121 6 2411 123 1857 712 2.16 8.98 0.27 3.46 337.22

cash flow statement for the year ended

31st march, 2003
A. 2002-03 Nrs. in Lacs 2001-02 Nrs. in Lacs 1873.15 1028.93 18.96 1140.94 75.19 2264.02 8.57 8.57 4128.60 -186.42 -364.05 16.76 -1552.74 544.93 233.11 -1996.43 2163.44 1001.21 325.55 836.68 -1144.11 -462.27 7.62 0.36 4.40 -1594.00 1518.01 -141.60 -262.50 -118.83 -242.75 -12.78 11.43 750.98 -6.34 36.37 30.03 -1308.41 2820.19 1150.45 150.85 1518.89 -684.06 -88.96 257.84 -515.18 1155.91 -1387.28 -310.97 -303.44 -15.97 8.57 -853.18 -0.86 37.23 36.37 Cash Flow from Operating Activities Net Profit as per P/L Account 1976.44 Add : Depreciation 1076.14 Amortisation of Misc. Expenses 23.21 Interest 1062.91 Loss on Sale of Assets 3.89 Loss on Sale of Bonds 33.47 2199.62 Less : Dividend Received 4.40 Interest Received 11.43 Rent Received 0.36 16.19 Operating Profit Before Working Capital Changes Working Capital Changes (Increase)/Decrease in Inventories (Increase)/Decrease in Debtors (Increase)/Decrease In Loans & Advances (Increase)/Decrease In Deposits & Receivables (Decrease)/Increase In Liabilities (Decrease)/Increase In Provisions Increase in Working Capital Cash Generated from Operation Interest Paid Advance Tax Paid Net Cash Generated from Operating Activities (A) B. Cash Flow from Investing Activities Purchase of Fixed Assets Net Increase in Investments Sale of Fixed Assets Rent Received Dividend Received Cash Outflow from Investing Activities C. Cash Flow from Financing Activities Increase in Borrowings for Working Capital Repayment of Term Loans to Banks Repayment of Unsecured Loans to Banks Deferred Financing from Supplier Payment of Dividend Tax on Dividend Interest Received Cash Flow from Financing Activities Net Increase In Cash Inflow Opening Cash & Bank Balances Closing Cash & Bank Balances -409.29 -155.25 -189.72 -1002.04 -366.58 126.45 4159.87

Cases Cases Cases Cases Cases Cases Cases Cases Cases Cases Cases MT MT MT MT MT MT MT Cases Cases Cases Cases Cases Cases Cases Cases Cases Cases Cases MT MT MT MT MT MT MT

444358 267 95437 350095 307098 2045 6267 246556 13351 1266261 70658 258 217 249 138 2654 61 674 444107 83309 336437 310144 6273 2091 247288 13474 1256520 65134 260 226 249 138 2654 64 916

417940 1965 24232 228601 175204 11398 5541 260199 16376 1188530 41548 603 371 2223 104 1326 419171 1763 23664 226770 171195 5560 11352 260290 16257 1194672 41445 596 371 2223 102 1182

2.

A. C. BURMAN Chairman Birgunj, Nepal 4th May 2003

R. S. RANA Managing Director A. MEHRA Chief Financial Controller & Co. Secretary

T. K. GUPTA Director S. K. DUDHORIA Head - Management Accounting

As per our report of even date attached For J. P. KHANDELWAL & CO. Chartered Accountants J. P. KHANDELWAL Proprietor

Annu al Rep o r t 2002-03

101