COST SHEET OF DABUR

1. Dabur India Ltd
Presented by:
ASHISH GOSWAMI(A006)
DARAIN HAQUE (A007)
SHAGUN AGGRAWAL(A001)
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2. Genesis
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3. COMPANY PROFILE
 Dabur (Dabur India Ltd.) is India's largest Ayurvedic
medicine & related products manufacturer. Dabur was
founded in 1884 by Dr. SK Burman, a physician in West
Bengal, to produce and dispense Ayurvedic medicines.
German company Fresenius SE bought a 73.27% equity stake
in Dabur Pharma in June 2008 .
 Dabur's Ayurvedic Specialities Division has over 260
medicines for treating a range of ailments and body
conditions, from common cold to chronic paralysis.
 Dabur India Limited is the fourth largest FMCG Company in
India with Revenues of over Rs 7,073 Crore & Market
Capitalisation of US $5 Billion. Building on a legacy of
quality and experience of over 130 years, Dabur operates in
key consumer products categories like Hair Care, Oral Care,
Health Care, Skin Care, Home Care & Foods.
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4.  VISION: dedicated to improve the quality of people’s
life by providing innovative health care products which
are not just affordable but also meet highest quality,
continue to set for ourselves the highest standard of
business ethics, customer services.
 MISSION: ability to emerge as a company recognized as
the best, in price and quality, by patients, customers,
business partners, and honoring our social
responsibilities in the communities where we live and
work.
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5. COST SHEET
 A document that reflects the cost of the items and
services required by a particular project or department
for the performance of its business purposes
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6.  Material consumed:
Raw materials inventory is the total cost of all component parts currently
in stock that have not yet been used in Work in progress or finished
goods production.
 Calculated by Adding raw material purchased to opening stock of raw
material and subtracting the closing stock of the raw materials with that
sum.
 Prime cost:
Prime cost is the combination of a manufactured product's costs of direct
materials and direct labor. In other words, prime cost refers to the direct
production cost.
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7.  Calculated by adding all direct expenses i.e. related to factory expenses
(includes direct labor) to the total cost of raw material consumed
 Factory cost:
Total cost incurred in manufacture of goods.
 Calculated by adding indirect or office or administration expenses to the
prime cost
 Cost of Production:
Expenditures including the expenses occurred during various sales efforts
 Calculated by adding all the selling and distribution expenses to the
factory or work cost
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8.  Cost of sales:
The sales without tax
 Calculated by adding cost of goods sold and profit to the cost of
production
 Cost of goods sold= Opening stock of finished goods – Closing stock of
finished goods
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9.  COMPONENTS OF TOTAL COST

 PRIME COST
 It consists of direct material, direct wages and direct expenses. So, it
represents the aggregate cost of material consumed, productive wages, and
direct expenses. It is also known as basic, first, flat or direct cost of a product.

 Prime Cost = Direct material + direct wages + Direct expenses

 Direct material means cost of raw material used or consumed in production.
However, it is not necessary that all the material purchased in a particular
period is used in production. There may be some stock of raw material in
balance at opening and closing of the period. Hence, it is necessary that the
cost of opening and closing stock of material is adjusted in the material
purchased.

 Material Consumed = Material purchased + Opening stock of material –
Closing stock of Material

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10. FACTORY COST
Also known as works cost, production or manufacturing cost, Factory cost
includes prime cost along with works or factory overheads. Factory
overheads include cost of indirect material, indirect wages, and other
indirect expenses incurred in the factory.
Factory cost = Prime Cost + Factory Overheads
In the process of production, some units remain to be completed at the
end of a period. These are called work-in-progress. Hence, adjustments
of opening and closing stock of WIP are to be made to arrive at the net
Factory costs.
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11. 
 TOTAL COST OF PRODUCTION
 Total cost of production includes factory cost and office and administrative overheads.

 Total Cost of production = Factory Cost + office and administration overheads

 COST OF GOODS SOLD
 It is not necessary that all the goods produced in a particular period will be sold in the
same period. Hence, adjustments are again made with respect to finished and opening
stock of goods.

 Cost of goods sold = Total cost of production + Opening stock of Finished goods-
Closing stock of finished goods

 Thus, after adding selling and distribution overheads, we arrive at Total Cost or Cost of
Sales.

 TOTAL COST = COST OF GOODS SOLD + SELLING AND DISTRIBUTION OVERHEADS
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12. Cost Sheet of Dabur India Ltd.
2012-13 2011-12
Particulars Rescore Total (Rs. crore) Rs. crore Total (Rs. crore)
Direct material 1658.05 1483.70
Direct labour 236.36 207.08
Direct expenses 0.31 0
Prime cost 1894.72 1690.78
Production Overhead :
Power & fuel 48.12 46.41
Depreciation on plant & machinery 46.19 36.81
Stores and spares consumed 13.46 13.45
Repairs to buildings 3.45 3.68
Repairs to plant & machinery 5.76 4.48
Processing charges 23.00 20.74
Rent 27.28 21.56
Insurance 4.24 3.61
Freight & forwarding charges 81.80 71.96
253.30 222.70
Factory cost/Production cost 2148.02 1913.48
Office & Administration Overhead :
Legal and professional charges 20..92 15.37
Telephone & fax expenses 3.94 3.82
Security expenses 6.41 5.60
General charges 157.66 127.18
Director's fee 0.11 0.12
Workmen & staff welfare 10.03 9.83
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13. Repairs 8.15 7.37
207.22 169.29
Total cost of production 2355.24 2082.77
Selling & distribution expenses :
Advertisements & publicity 502.37 397.66
Commission,Discounts and Rebate 30.12 32.87
Travel & conveyance 38.57 33.18
571.06 463.71
Cost of goods sold 2926.30 2546.48
Total Sales 6146.40 5283.20
Profit 3220.10 2736.72
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Direct material 1658.05 1483.70
Direct labour 236.36 207.08
Direct expenses 0.31 0
Power & fuel 48.12 46.41
Depreciation on plant &
machinery 46.19 36.81
Legal and professional
charges 20..92 15.37
Telephone & fax expenses 3.94 3.82
Security expenses 6.41 5.60
General charges 157.66 127.18
Director's fee 0.11 0.12
Variable cost

15. Advertisements &
publicity 502.37 397.66
Commission,Discounts
and Rebate 30.12 32.87
Travel & conveyance 38.57 33.18
VARIABLE
COST
2749.93 2389.8
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17.  From the cost sheet, we can see that Sales have increased from Rs.
528320 lacs to Rs. 614640 lacs. There has been a increase in Sales.
 Profit in the year 2012-13 is Rs. 322010 lacs. There has been a increase
in profits from the year 2011-12.
 Direct material constitutes 87.5% of prime cost, while direct labour is
12.47% of prime cost. Hence, we can say that Dabur spends more on raw
materials than on the factory workers.
 Production overhead mainly consists of power and fuel has increased .
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18.  General expenses accounts to major portion of office
and administration overhead, It has increased in the
year 2012-13.
.
 In general, office & administration overhead has
increased Advertisements & publicity increased from
the previous year .
 This indicates that the company focuses highly on
advertisements and hence spends the most in this
category.
 Selling & distribution expenses have from the cost
sheet, we can see that the cost of goods sold has
increased from Rs. 254648 lacs to Rs. 292630 lacs, .
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19. BREAK-EVEN ANALYSIS
 B.E.P. or Break-Even point is the point where total income from sales is
equal to the total cost (inclusive of fixed and variable). At this point, the
firm is not making any profits or loss.
 Contribution = Selling Price – Variable Costs
 B.E.P. = Fixed costs / Contribution
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20. Break-even Analysis
2012-13 2011-12
Particulars Rescore Total (Rs. crore) Rs. crore Total (Rs. crore)
Sales 6146.40 5283.20
Variable cost :
Direct material 1658.05 1483.70
Direct labour 236.36 207.08
Direct expenses 0.31 0
Stores and spares consumed 13.46 13.45
Processing charges 23.00 20.74
Freight & forwarding charges 81.80 71.96
Commission,Discounts and Rebate 30.12 32.87
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21. Fixed cost :
Power & fuel 48.12 46.41
Depreciation on plant and machinery 46.19 36.81
Repairs to building 3.45 3.68
Repair to plant & machinery 5.76 4.48
Rent 27.28 21.56
Insurance 4.24 3.61
Legal and professional charges 2.92 15.37
Telephone & fax expenses 3.94 3.82
Security expenses 6.41 5.60
General charges 157.66 127.18
Director's fee 0.11 0.12
Workmen & staff welfare 10.03 9.83
Repairs 8.15 7.37
Advertisements & publicity 502.37 397.66
844.63 683.50
Contribution/ Sales Ratio 0.661318821 0.64737659
Break-Even Point (Sales Revenue) 1277.19 1055.79
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22.  The Break-Even Point is Rs. 127719.0326. It has increased from the
previous year. Hence, we can conclude that at Rs. 127719.0326 sales
revenue, the company will break-even and cover all its costs.
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23. P/V Ratio
 It is the relationship between sales and contribution.
This ratio helps to ascertain the profitability of the
firm.
 = Sales – Variable cost
Sales
 = Contribution X 100
Sales
 = Fixed expenses + Profit X 100
Sales
 = Change in contribution or profit X 100
Sales
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24. 2012-2013 IN
CRORES
2011-2012 IN
CRORES
SALES:6164.40 SALES:5283.20
CONTRIBUTION:4064.73 CONTRIBUTION :3420.22
PV RATIO: 66.13% PV RATIO: 64.73%
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25. Margin of safety
 Break-even analysis calculates what is known as a
margin of safety, the amount that revenues exceed the
break-even point.
 = Sales- Sales at BEP
Sales
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26. 2012-2013 IN
CRORES
2011-2012 IN
CRORES
SALES AT BEP:1277.19 SALES AT BEP:1055.79
SALES:6146.40 SALES :5283.20
MARGIN OF SAFETY:79.2% MARGIN OF SAFETY :80%
The company was in a better financial
position in the year 2012
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27. THANK
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