You are here » Home » Companies » Company Overview » Dabur India Ltd

Dabur India Ltd.

BSE: 500096 Sector: Consumer
NSE: DABUR ISIN Code: INE016A01026
BSE 00:00 | 11 Aug 582.05 -2.70
(-0.46%)
OPEN

589.00

HIGH

589.90

LOW

581.25

NSE 00:00 | 11 Aug 582.70 -2.25
(-0.38%)
OPEN

588.00

HIGH

590.00

LOW

581.00

OPEN 589.00
PREVIOUS CLOSE 584.75
VOLUME 21764
52-Week high 658.75
52-Week low 482.20
P/E 72.13
Mkt Cap.(Rs cr) 103,122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 589.00
CLOSE 584.75
VOLUME 21764
52-Week high 658.75
52-Week low 482.20
P/E 72.13
Mkt Cap.(Rs cr) 103,122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dabur India Ltd. (DABUR) - Auditors Report

Company auditors report

To the Members of Dabur India Limited

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements ofDabur India Limited (‘the Company') which comprise the Balance Sheet as at 31March

2022 the Statement of Profit and Loss (including Other

Comprehensive Income) the Statement of Cash Flow and the Statement ofChanges in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements give theinformation required by the

Companies Act 2013 (‘the Act') in the manner so required andgive a true and fair view in conformity with the Indian

Accounting Standards (‘Ind AS') specified under section

133 of the Act read with the Companies (Indian Accounting Standards)Rules 2015 and other accounting principles generally accepted in India of the state ofaffairs of the

Company as at 31 March 2022 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

3. We conducted our audit in accordance with the

Standards on Auditing specified under section 143(10) of the Act. Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (‘ICAI') together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

5. We have determined the matters described below to be the key auditmatters to be communicated in our report.

Key audit matter How our audit addressed the key audit matter
A.Revenue recognition Our key procedures included but were not limited to the following:
Refer note 32 to the standalone financial statements.
The Revenues of the Company consists primarily of sale of products and is recognized when control of products being sold is transferred to customer and there is no unfulfilled obligation. a) Assessed the appropriateness of the Company's revenue recognition accounting policies including those relating to rebates and trade discounts by comparing with the applicable accounting standards;
Revenue is measured at fair value of the consideration received or receivable and is accounted for net of rebates trade discounts. b) Tested the design and operating effectiveness of the general IT control environment and the manual controls for recognition of revenue calculation of discounts and rebates;
The estimation of discounts incentives and rebates recognized related to sales made during the year is material and considered to be complex and subject to judgments. The complexity mainly relates to various discounts incentives and scheme offers diverse range of market presence and complex contractual agreements/ commercial terms across those markets. Therefore there is a risk of revenue being misstated as a result of inaccurate estimates of discounts and rebates. c) Performed test of details:
i. Tested on a sample basis sales transactions to the underlying supporting documentation which includes goods dispatch notes and shipping documents;
ii. Reviewed on a sample basis sales agreements and the underlying contractual terms related to delivery of goods and rebates to assess the Company's revenue recognition policies with reference to the requirements of the applicable accounting standards;
The Company also focuses on revenue as a key performance measure which could create an incentive for overstating revenue by influencing the computation of rebates and discounts. iii. Assessed the Company's process for recording of the accruals for discounts and rebates as at the year-end for the prevailing incentive schemes;
Considering the materiality of amounts involved significant judgements related to estimation of rebates and discounts the same has been considered as a key audit matter. iv. Tested on a sample basis discounts and rebates recorded during the year to the relevant approvals and supporting documentation which includes assessing the terms and conditions defined in the prevalent schemes and customer contracts;
v. Obtained supporting documentation for a sample of credit notes issued after the year end to determine whether the transaction was recognized in the correct accounting period; and
vi. Assessed modification there is any to or other impact on the contracts with customers due to COVID 19 outbreak.
d) Compared the discount incentives and rebates of the current year with the prior year for variance/trend analysis and where relevant conducted further inquiries and testing to corroborate the variances by considering both internal and external benchmarks overlaying our understanding of industry practices and recent changes in economic environment; and
e) Assessed the appropriateness of the Company's description of the accounting policy disclosures related to discounts incentives and rebates and whether these are adequately presented in the standalone financial statements.
B. Litigations and claims - provisions and contingent liabilities Our key procedures included but not limited to the following:
Refer note 44A and 47 to the standalone financial statements. a) Assessed the appropriateness of the Company's accounting policies relating to provisions and contingent liability by comparing with the applicable accounting standards;
The Company is involved in direct indirect tax and other litigations (‘litigations') that are pending with different statutory authorities. b) Assessed the Company's process and the underlying controls for identification of the pending litigations and completeness for financial reporting and also for monitoring of significant developments in relation to such pending litigations;
The level of management judgement associated with determining the need for and the quantum of provisions for any liabilities arising from these litigations is considered to be high. This judgement is dependent on a number of significant assumptions and assessments which involves interpreting the various applicable rules regulations practices and considering precedents in the various jurisdictions.
This matter is considered as a key audit matter in view of the uncertainty regarding the outcome of these litigations significance the of the amounts involved and the subjectivity involved in management's judgement as to whether the amount should be recognized as a provision or only disclosed as contingent liability in the standalone financial statements. c) Assessed the Company's assumptions and estimates in respect of litigations including the liabilities or provisions recognized or contingent liabilities disclosed in the standalone financial statements. This involved assessing the probability of an unfavorable outcome of a given proceeding and the reliability of estimates of related amounts;
d) Performed substantive procedures on the underlying calculations supporting the provisions recorded; e) Assessed the management's conclusions through understanding relevant judicial precedents in similar cases and the applicable rules and regulations;
f) Obtained legal opinions from the Company's external legal counsel where appropriate;
g) Engaged subject matter specialists to gain an understanding of the current status of litigations and monitored changes in the disputes if any through discussions with the management and by reading external advice received by the Company where relevant to validate management's conclusions; and
h) Assessed the appropriateness of the Company's description of the accounting policy disclosures related to litigations and whether these are adequately presented in the standalone financial statements.

Information other than the Standalone Financial Statements andAuditor's Report thereon

6. The Company's Board of Directors are responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Report on Corporate Governance and Directors' Report butdoes not include the standalone financial statements and our auditor's reportthereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

7. The accompanying standalone financial statements have been approvedby the Company's Board of Directors. The Company's Board of Directors areresponsible for the matters stated in section 134(5) of the Act with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance including other comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind ASspecified under section

133 of the Act and other accounting principles generally accepted inIndia. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

8. In preparing the financial statements the Board of

Directors are responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless the Board of Directors eitherintend to liquidate the Company or to cease operations or has no realistic alternativebut to do so.

9. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

10. Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.

11. As part of an audit in accordance with Standards on

Auditing specified under section 143(10) of the Act we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control;

Obtain an understanding of internal control relevant

to the audit in order to design audit procedures that are appropriatein the circumstances. Under section 143(3)(i) of the Act we are also responsible forexpressing our opinion on whether the Company has adequate internal financial controlssystem with reference to financial statements in place and the operating effectiveness ofsuch controls;

Evaluate the appropriateness of accounting policiesusedandthereasonablenessofaccountingestimates and related disclosures made by management;

Conclude on the appropriateness of Board ofDirectors'useofthegoingconcernbasisofaccounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the

Company's ability to continue as a going concern. If we concludethat a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern; and

Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

12. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

13. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

14. From the matters communicated with those charged with governancewe determine those matters that were of most in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

15. As required by section 197(16) of the Act based on our audit wereport that the Company has paid remuneration to its directors during the year inaccordance with the provisions of and limits laid down under section 197 read withSchedule V to the Act.

16. As required by the Companies (Auditor's Report) Order 2020(‘the Order') issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

17. Further to our comments in Annexure A as required by section143(3) of the Act based on our audit we report to the extent applicable that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit of the accompanyingstandalone financial statements; b) in our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of thosebooks; c) The standalone financial statements dealt with by this report are in agreementwith the books of account; d) in our opinion the aforesaid standalone financialstatements comply with Ind AS specified under section 133 of the Act; e) On the basis ofthe written representations received from the directors and taken on record by the Boardof Directors none of the directors disqualified as on 31 March 2022 from beingappointed as a director in terms of section 164(2) of the Act; f) With respect to theadequacy of the internal financial controls with reference to financial statements of theCompany as on 31 March 2022 and the operating effectiveness of such controls refer to ourseparate Report in Annexure B wherein we have expressed an unmodified opinion; and g) Withrespect to the other matters to be included in the Auditor's Report in accordancewith rule 11 of the Companies (Audit and Auditors) Rules 2014

(as amended) in our opinion and to the best of our information andaccording to the explanations given to us: i. the Company as detailed in note 44 to thestandalone financial statements has disclosed the impact of pending litigations on itsfinancial position as at 31 March 2022; ii. the Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses as at 31 March 2022; iii. There has been no delay in transferring amounts requiredto be transferred to the Investor Education and Protection Fund by the Company during theyear ended 31 March 2022; iv. (a) The management has represented that to the best of itsknowledge and belief as disclosed in note 63 to the standalone financial statements nofunds have been advanced or loaned or invested (either from borrowed funds or securitiespremium or any other sources or kind of funds) by the Company to or in any person orentity including foreign entities (‘the intermediaries') with theunderstanding whether recorded in writing or otherwise that the intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Company

(‘the Ultimate Beneficiaries') or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; iv. (b) The management hasrepresented that to the best of its knowledge and belief as disclosed in note 63 to thestandalone financial statements no funds have been received by the Company from anyperson or entity including foreign entities (‘the Funding Parties') with theunderstanding whether recorded in writing or otherwise that the Company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding

Party (‘Ultimate Beneficiaries') or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and iv. (c) Based on suchaudit procedures performed as considered reasonable and appropriate in the circumstancesnothing has come to our notice that has caused us to believe that the managementrepresentations under sub-clauses (a) and (b) above contain any material misstatement. v.the final dividend paid by the Company during the year ended 31 March 2022 in respect ofsuch dividend declared for the previous year is in accordance with section 123 of the Actto the extent it applies to payment of dividend. Further the interim dividend declaredand paid by the Company during the year ended 31 March 2022 and until the date of thisaudit report is in compliance with section 123 of the Act. Further as stated in note 43to the accompanying standalone financial statements the Board of Directors of the Companyhave proposed final dividend for the year ended 31 March 2022 which is subject to theapproval of the members at the ensuing Annual General Meeting. The dividend declared is inaccordance with section 123 of the Act to the extent it applies to declaration ofdividend.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013 Neeraj Goel
Partner
Place : New Delhi Membership No.: 099514
Date : 5 May 2022 UDIN: 22099514AIKRTN6856

Annexure A

In terms of the information and explanations sought by us and given bythe Company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we report that:

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment capital work-in-progress right of use assets and investment property.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(b) The property plant and equipment capital work-in-progress rightof use assets and investment property have been physically verified by the managementduring the year and no material discrepancies were noticed on such verification. In ouropinion the frequency of physical verification program adopted by the Company isreasonable having regard to the size of the Company and the nature of its assets.

(c) The title deeds of all the immovable properties (includinginvestment properties) held by the Company (other than properties where the Company is thelessee and the lease agreements are duly executed in favour of the lessee) are held in thename of the Company.

(d) The Company has not revalued its property plant and equipmentcapital work-in progress right of use assets or intangible assets during the year.

(e) No proceedings have been initiated or are pending against theCompany for holding any benami property under the Benami Transactions

(Prohibition) Act 1988 (45 of 1988) and rules made thereunder.Accordingly reporting under clause 3(i)(e) of the Order is not applicable to the

Company.

(ii) (a) The management has conducted physical verification ofinventory at reasonable intervals during the year except for inventory lying with thirdparties. In our opinion the coverage and verification procedure of such by the managementis appropriate and no discrepancies of 10% or more in the aggregate for each class ofinventory were noticed. In respect of inventory lying with third parties these havesubstantially been confirmed by the third parties.

(b) The Company has a working capital limit in excess of Rs 5 croresanctioned by banks based on the security of current assets. The quarterly statements inrespect of the working capital limits have been filed by the Company with such banks andsuch statements are in agreement with the books of account of the Company for therespective periods which were not subject to audit/review.

(iii) (a) The Company has provided loans to Subsidiaries/

Joint Ventures/Associates/Others during the year as per details givenbelow:

(in Rs crores)
Particulars Guarantees Security Loans Advances in nature of loans
Aggregate amount provided/ granted during the year
- Others Balance outstanding as at balance sheet date in respect of above cases: 0.21
- Others 0.57

(b) In our opinion and according to the information and explanationsgiven to us the investments made and terms and conditions of the grant of all loans areprima facie not prejudicial to the interest of the Company. Further the Company has notprovided any guarantee or given any security during the year.

(c) In respect of loans granted by the Company the schedule ofrepayment of principal has been stipulated and the repayments of principal are regular.Further no interest is receivable on such loans.

(d) There is no overdue amount in respect of loans granted to suchother parties.

(e) The Company has granted loans which had fallen due during the yearand were repaid on or before the due date. Further no fresh loans were granted to anyparty to settle the overdue loans/advances in nature of loan. (f) The Company has notgranted any loans or advances in the nature of loans which are repayable on demand orwithout specifying any terms or period of repayment.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 186 of the Act inrespect of investments as applicable. Further the Company has not entered into anytransaction covered under section 185 and section 186 of the Act in respect of loansguarantees and security.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits or there is no amount which hasbeen considered as deemed deposit within the meaning of sections 73 to 76 of the Act andthe Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly reportingunder clause 3(v) of the Order is not applicable to the Company.

(vi) The Central Government has specified maintenance of cost recordsunder sub-section (1) of section 148 of the Act in respect of the products of the Company.We have broadly reviewed the books of account maintained by the Company pursuant to theRules made by the Central Government for the maintenance of cost records and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) In our opinion and according to the information andexplanations given to us undisputed statutory dues including goods and services taxprovident fund employees' state insurance income-tax sales-tax service tax dutyof customs duty of excise value added tax cess and other material statutory dues asapplicable have generally been regularly deposited with the appropriate authorities bythe Company though there have been slight delays in a few cases. Further no undisputedamounts payable in respect thereof were outstanding at the year-end for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us thereare no statutory dues referred in sub-clause (a) which have not been deposited with theappropriate authorities on account of any dispute except for the following:

Name of the statute Nature of dues Gross Amount (in Rs crores) Amount paid under protest (in Rs crores) Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act Local Sales Tax Act and Value Added Tax Value Added Tax /Central Sales Tax 57.08 5.33 1999-00 2001-02 to 2018-19 & 2020-21 Assessing Authority / Commissioner's Level / Revisional Board
61.70 28.55 2002-03 2007-08 2009-10 to 2017-18 Sales Tax / VAT Appellate Tribunal
12.52 1.18 1999-00 2006-07 to 2009-10 & 2011-12 to 2012-13 Hon'ble High Courts
Central Excise Act 1944 Excise duty 40.51 - 1994-95 to 1999-00 2006-07 to 2017-18 Commissioner's Level
0.07 - 1995-962000-01 2003-04 to 2007-08 Commissioner (Appeals)
55.12 9.54 1996-97 to 2000-01 2005-06 to 2017-18 CESTAT
16.96 - 2006-07 to 2010-11 Hon'ble High Court
Finance Act 2004 and Service-tax Rules Service tax 0.19 - 2005-06 to 2010-11 CESTAT
The Indian Stamp Act 1899 Stamp duty 15.30 3.83 2007 to 2015 Hon'ble High Court
2.96 0.74 2014-15 to 2019-20 Rajasthan Tax Board
The Income-tax Act 1961 Income tax 136.69 - 2015-16 to 2018-19 Commissioner of Income Tax ("CIT(A)")
66.06 - 2009-10 to 2014-15 Income Tax Appellate Tribunal (ITAT)
11.60 - 2007-08 to 2008-09 Hon'ble High Court

(viii) According to the information and explanations given to us notransactions were surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961) which have not been recorded inthe books of accounts. (ix) (a) According to the information and explanations given to usthe Company has not defaulted in repayment of its loans or borrowings or in the payment ofinterest thereon to any lender. (b) According to the information and explanations given tous including confirmations received from banks and representation received from themanagement of the Company and on the basis of our audit procedures we report that theCompany has not been declared a willful defaulter by any bank or financial institution orother lender.

(c) In our opinion and according to the information and explanationsgiven to us money raised by way of term loans were applied for the purposes for whichthese were obtained. (d) In our opinion and according to the information and explanationsgiven to us and on an overall examination of the financial statements of the

Company funds raised by the Company on short term basis have not beenutilised for long term purposes. (e) According to the information and explanations givento us and on an overall examination of the financial statements of the Company theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries or joint venture.

(f) According to the information and explanations given to us theCompany has not raised any loans during the year on the pledge of securities held in itssubsidiaries or joint venture.

(x) (a) In our opinion and according to the information andexplanations given to us money raised by way of debt instruments were applied for thepurposes for which these were obtained.

(b) According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or (fullypartially or optionally) convertible debentures during the year. Accordingly reportingunder clause 3(x)(b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge and according to the informationand explanations given to us no fraud by the Company or on the Company has been noticedor reported during the period covered by our audit.

(b) No report under section 143(12) of the Act has been filed with theCentral Government for the period covered by our audit. (c) According to the informationand explanations given to us including the representation made to us by the management ofthe Company there are no whistle-blower complaints received by the Company during theyear.

(xii) The Company is not a Nidhi Company and the Nidhi

Rules 2014 are not applicable to it. Accordingly reporting underclause 3(xii) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanationsgiven to us all transactions entered into by the Company with the related parties are incompliance with sections 177 and 188 of the Act where applicable.

Further the details of such related party transactions have beendisclosed in the standalone financial statements as required under Indian Accounting

Standard (Ind AS) 24 Related Party Disclosures specified in Companies(Indian Accounting Standards)

Rules 2015 as prescribed under section 133 of the Act.

(xiv) (a) In our opinion and according to the information andexplanations given to us the Company has an internal audit system as required undersection 138 of the Act which is commensurate with the size and nature of its business.

(b) We have considered the reports issued by the Internal Auditors ofthe Company till date for the period under audit.

(xv) According to the information and explanation given to us theCompany has not entered into any non-cash transactions with its directors or personsconnected with them and accordingly provisions of section 192 of the Act are notapplicable to the Company.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

Accordingly reporting under clauses 3(xvi)(a)(b) and

(c) of the Order are not applicable to the Company.

(d) Based on the information and explanations given to us and asrepresented by the management of the Company the Group (as defined in

Core Investment Companies (Reserve Bank) Directions 2016) has only oneCIC as part of the Group.

(xvii) The Company has not incurred any cash loss in the current aswell as the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors duringthe year. Accordingly reporting under clause

3(xviii) of the Order is not applicable to the Company.

(xix) According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the plans of the Board of Directors and managementand based on our examination of the evidence supporting the assumptions nothing has cometo our attention which causes us to believe that any material uncertainty exists as onthe date of the audit report that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the company as and when they fall due.

(xx) According to the information and explanations given to us theCompany does not have any unspent amount in respect of any ongoing or other than ongoingproject as at the expiry of the financial year. Accordingly reporting under clause 3(xx)of the Order is not applicable to the

Company.

(xxi) The reporting under clause 3(xxi) of the Order is not applicablein respect of audit of standalone financial statements of the Company. Accordingly nocomment has been included in respect of said clause under this report.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Neeraj Goel
Partner
Place : New Delhi Membership No.: 099514
Date : 5 May 2022 UDIN: 22099514AIKRTN6856

Annexure B

Independent Auditor's Report on the internal financial controlswith reference to the standalone financialstatements under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 (‘the Act')

1. In conjunction with our audit of the standalone financial statementsof Dabur India Limited (‘the Company') as at and for the year ended 31 March2022 we have audited the internal financial controls with reference to standalonefinancial statements of the Company as at that date.

Responsibilities of Management and Those Charged with Governance forInternal Financial Controls

2. The Company's Board of Directors is responsible forestablishing and maintaining internal financial controls based on the internal financialcontrols with reference to standalone financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting (‘the GuidanceNote') issued by the Institute of Chartered Accountants of India (‘ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of the

Company's business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility for the Audit of the Internal FinancialControls with Reference to Standalone Financial Statements

3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to standalone financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theICAI prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements and the

Guidance Note issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls with reference to standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements includes obtaining anunderstanding of such internal financial controls assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatementof the standalone financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with Reference to StandaloneFinancial Statements

6. A company's internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements includethose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could havea material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference toStandalone Financial Statements

7. Because of the inherent limitations of internal financial controlswith reference to standalone financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls with reference to standalone financial statements to future periods aresubject to the risk that the internal financial controls with reference to standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such controls wereoperating effectively as at 31 March

2022 based on the internal financial controls with reference tostandalone financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Neeraj Goel
Partner
Place : New Delhi Membership No.: 099514
Date : 5 May 2022 UDIN: 22099514AIKRTN6856

.