Sip Report Final

SUMMER TRAINING REPORT
ON
“FINANCIAL STATEMENT ANALYSIS - EXIDE”
By
Simran Arora
Roll No. -: 186122026
Under the supervision of Submitted to

Mr. Amber Rai Garg Dr. Pankaj Kumar
Partner
Rai Tax Consultants
FACULTY OF MANAGEMENT STUDIES

DIT UNIVERSITY, DEHRADUN
OCTOBER 2019
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ACKNOWLEDGEMENT
As it happens for most of the assignment, the completion of this thesis would not have been
possible if not for some good sound guidance from many concerned.
First of all, I would like to thank the employees of Rai Tax Consultants who helped me in
completion of the actual report.
I would like to thank “Dr. HEMRAJ VERMA”, H.O.D, (MBA). I would also like to convey
my sincere gratitude to “Dr. Pankaj Kumar” (Faculty of Management Studies, DIT), my mentor,
for his support and guidance.
Simran Arora
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Table of Contents
SUMMER TRAINING REPORT ........................................................................................................ 1
ACKNOWLEDGEMENT .................................................................................................................. 2
CERTIFICATE .................................................................................. Error! Bookmark not defined.
1. EXECUTIVE SUMMARY .......................................................................................................... 5
2. INTRODUCTION OF SIP ........................................................................................................... 6
3. OBJECTIVE .............................................................................................................................. 6
4. METHODOLOGY: - .................................................................................................................... 6
5. LIMITATIONS: -........................................................................................................................ 6
6. INTRODUCTION OF COMPANY ............................................................................................... 7
6.1 Macro Level (About battery Industry) ........................................................................ 7
6.2 Micro Level (About Exide Industries Limited)............................................................. 8
7. ORGANISATIONAL STRUCTURE .......................................................................................... 15
8. MY LEARNINGS AT Rai Tax Consultants (CA Partnership Firm) ................................................. 16
Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY – Part I .. 16
Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY
– Part II ............................................................................................................................ 17
Income Tax Slabs for Senior Citizens(80 Years Old Or More) for FY – Part III ........................ 17
8.1 What is E-Filing? ........................................................................................................ 18
8.1.1Benefits of E-Filing: ............................................................................................... 18
8.2 Types of e-Filing: ........................................................................................................ 18
8.3 List of Required Documents for e-filing of tax returns .................................................. 19
1. FORM 16.................................................................................................................................... 20
9. SWOT ANALYSIS ................................................................................................................... 21
STRENGTHS ................................................................................................................ 21
WEAKNESSES ............................................................................................................. 21
OPPORTUNITIES ......................................................................................................... 21
THREATS..................................................................................................................... 21
10. PORTER’S FIVE FORCES ANALYSIS .................................................................................... 22
11. FINANCIAL STATEMENT OF EXIDE INDUSTRIES LTD. ...................................................... 24
11.1 BALANCE SHEET ............................................................................................... 24
11.1.1 VERTICAL ANALYSIS OF BALANCE SHEET OF EXIDE INDUSTRIES LTD.
.................................................................................................................................... 26
11.1.2 TREND ANALYSIS OF BALANCE SHEET OF EXIDE INDUSTRIES LTD. ...... 28
11.2 INCOME STATEMENT ........................................................................................ 33
11.2.1 COMMON SIZE INCOME STATEMENT OF EXIDE INDUSTRIES LTD. ...... 34
11.2.2 TREND ANALYSIS OF INCOME STATEMENT OF EXIDE INDUSTRIES
LTD. ............................................................................................................................ 36
12.EXIDE RATIOS AND ITS INTERPRETATIONS ......................................................................... 37
12.1 FINANCIAL RATIOS ............................................................................................ 38
12.2 INTERPRETATIONS ............................................................................................ 39
13. COMPARISON STUDY OF EXIDE WITH ITS COMPETITORS .................................................. 45
13.1FINANCIAL RATIOS OF BATTERY MANUFACTURING INDUSTRY ................... 49
13.2 ANALYSIS ON THE BASIS OF DIRECTOR’S REPORT ......................................... 51
14. CONCLUSION ......................................................................................................................... 52
15. ANNEXURES: .......................................................................................................................... 54
PROFIT AND LOSS STATEMENT OF AMARA RAJA BATTERIES LTD. ................. 56
PROFIT AND LOSS STATEMENT OF HBL POWER SYSTEMS. ............................... 59
PROFIT AND LOSS STATEMENT OF HIGH ENERGY BATTERIES. ....................... 62
PROFIT AND LOSS STATEMENT OF STARLIT POWER SYSTEMS. ....................... 64
16. REFERENCES: ......................................................................................................................... 65
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1. EXECUTIVE SUMMARY
I did my summer Internship program (S.I.P) in Rai Tax Consultants (CA Partnership
Firm), in Gurgaon from 3rd June 2019 – 31 July 2019.
I gained the theoretical and practical knowledge of e-filing of returns, Form 16, Form 26AS.
Apart from the learning at the office, the company also gave me a project for my SIP to work
upon and the name of my project is FINANCIAL STATEMENT ANALYSIS OF EXIDE.
The objective behind giving this project is to check the financial health and position of the
Exide Industries Ltd in the market.
This report provides an analysis and evaluation of the current and prospective profitability,
liquidity and financial stability of Exide Industries Ltd. Methods of analysis include trend,
horizontal and vertical analyses as well as ratios such as Debt, Current and Quick ratios.
Other calculations include rates of return on Shareholders’ Equity and Total Assets and
earnings per share to name a few. Results of data analysed show that all ratios are above
industry averages. In particular, comparative performance is satisfactory in the areas of profit
margins, liquidity, credit control and inventory management.
The report also focuses on financial statements of Exide’s competitor’s and calculation of
financial ratios. Ratio analysis of four competitors’ companies’ viz. Amara raja batteries ltd,
HBL power systems, high energy batteries, starlit power systems compares these four
companies with my SIP company- Exide Industries Ltd. And where Exide stands in terms of
turnover, PAT, EPS, ROCE, etc.
The main reason that firm gave me this project is that the firm audit the Exide Industries Ltd.
I was asked to check the company’s financial position and what company should do to
increase profit. I analysed the company’s financial statements and I came to know that due to
high fixed costs and other expenses, company’s net profits are less as compared to its one
close competitor.
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2. INTRODUCTION OF SIP
I joined Rai Tax Consultants (CA Partnership Firm), as Management Trainee and I did my
training at Gurgaon office.
My internship was divided into two parts:-
1. Training in the finance department at Rai Tax Consultants (CA Partnership Firm)
2. Project on Financial Statement Analysis of Exide Industries Ltd.
During my internship, in the training part I learnt workings of finance department and gained
knowledge of the Income tax return filing.
In my project on financial statement analysis. I had to do the comparison between EXIDE and
its competitors. So, the competitors which I have chosen for comparison are:-
1. Amara Raja Batteries ltd.
2. HBL Batteries
3. High Energy Batteries and
4. Starlit Power Systems
The purpose of doing the comparison of Exide with its competitors is to check the company’s
financial health and position in market.
3. OBJECTIVE
 To know about the company, their, main business activity, their organisational
structure and how the company runs.
 To learn the basic operations of finance department.
 To understand, analyse and interpret the financial statements of the company
(Exide) and its competitors and find out some valuable conclusion.
 To Interpret the financial ratios and their significance.
 To analyze the different financial statements and financial ratios using MS Excel
Calculation.
4. METHODOLOGY: -The information will be collected from the primary and the
secondary sources for the project. That information will be utilizing for calculating the
performance evaluation and based on that interpretations will be made.
The whole process will include the following activities:-
 Most of the calculations are being made with the help of the financial statement.
 I am also referring the standard texts and related text books to collect some
information regarding the theoretical aspects.
 Study the company’s balance sheet, company policies and acts.
 Will be using different ratios to analyse the health of the company.
5. LIMITATIONS: -The study provides an insight into the financial, personnel,

marketing and other aspects of the Exide Industries ltd.
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Every study will be bound with certain limitations.
 Time is an important limitation. The whole study has to be conducted within a
period of 75 days, which might not be sufficient to carry out proper interpretation
and analysis.
 Understanding the all the work of finance department in 75 days was quite difficult.
 The company is using the SAP and I didn’t have prior experience of working in
finance department so it took me time to understand the working of the department
first because it is very complicated and have various systems to remember which can
only be remembered through regular practice.
NEED OF THE STUDY
1. The study has great significance and provides benefits to various parties whom directly or
indirectly interact with the company.
2. It is beneficial to management of the company by providing crystal clear picture regarding
important aspects like liquidity, leverage, activity and profitability.
3. The study is also beneficial to employees and offers motivation by showing how actively
they are contributing for company’s growth.
4. The investors who are interested in investing in the company’s shares will also get
benefited by going through the study and can easily take a decision whether to invest or not
to invest in the company’s shares.
6. INTRODUCTION OF COMPANY
6.1 Macro Level (About battery Industry)
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Companies in this industry manufacture primary (disposable) batteries and storage
(rechargeable) batteries for consumer’s automotive and industrial use.Major companies
India manufacturing includes Exide industries ltd. Amara Raja Batteries, HBL Power Systems
and High Energy Batteries, SF sonic (part of Exide industries ltd.) etc. The various products
of the industry are automotive batteries, solar batteries, industrial batteries (railways, telecom,
traction etc.), inverter batteries, submarine batteries and Genset batteries.
Macro level
(Battery industry)
Automotive Industrial
Amara Amara
Exide Raja
Others Exide Others
Raja
(48%) (8%) (65%) (5%)
(44%) (30%)
Demand of this industry depends primarily on the level of activity in the automotive and
electronic sectors of the economy. Personal income drives new battery purchases in consumer
goods, and consumer usage levels drive demand for replacement batteries. Large companies
have economies of scale in purchasing. Smaller producers compete by focusing on specialized
products and customer service. Apart from conventional demand from manufacturing
industries, the digital and telecom boom has generated demand for batteries for power storage
equipment. The growth of the battery market is also driven by the increasing demand from
sectors like banking, hospitality, transportation and other industrial applications. Besides, the
boom in the solar sector has added extra impetus to this industry. With all these factors
combined, the Indian battery market is expected to remain bullish in the coming years.
6.2 Micro Level (About Exide Industries Limited)
The company at present is Head quartered in Kolkata and the main business of the
company is battery manufacturing in Automobile and Industrial Sector.
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The below flow chart represent the life cycle of Exide Industries limited till now by
highlighting the major milestones of the company.
• UK Set up in India for trading operations as an import house with the

1920 name Chloride Electric Storage co. (CESCO)
• First factory set up in Shamnagar, West Bengal.

1946
• On 31 January 1947 incorporated as Choride International ltd.

1947
• Second factory was established in chinchwad, Pune

1969
• Research and Develpoment centre was established in kolkata.

1976
• Third factory was established in Haldia, West Bengal.

1981
• The name of the company changed to Chloride Industries Ltd.

1988
• Technical collaboration with Shin Kobe Electric Machinery Co. Ltd.,

Japan, a subsidiary of the Hitachi Group
1994
• Chloride Industries ltd. renamed as 'Exide Industries Ltd.

1995
• Fourth factory established in Hosur, Tamil Nadu

1997
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• Takeover of the industrial undertakings of Standard Batteries
1998 Ltd. as a going concern
• 100% acquisition of CBSEA, Singapore.

2000 • 49% acquisition of ABM (Ceylon), Sri Lanka.
• Commissioning of plant at Bawal, Haryana

2003 • New JV Company in UK - ESPEX formed with 51% EIL holding
• Increased ABM Ceylon holding to 61%

2004
• Investment in 50% shareholding of ING Vysya Life Insurance

2005 Company Limited.
• 100% acquisition of Chloride Metals Limited.

2007
• Acquisition of first home UPS manufacturing facility at Roorkee.

2011
• Acquisition of Second Home UPS manufacturing facility at Haridwar

2012 • Espex Batteries, UK became Wholly-owned subsidiary
• Acquisition of remaining 50% shareholding in ING Vyasya LIfe

Insurance and the name of the company changed to Exide Life
2013 Insurance co. ltd.
For more than six decades, Exide has been one of India’s most reliable brands, enjoying
unrivalled reputation and recall. Exide offers complete solution in areas of equipment
selection, battery sizing, optimum room layout, installation, operation and maintenance.
Exide boasts of a distribution network and services which is continuously monitored and kept
contemporary through evolving life cycles and is always ahead of competition. Their constant
emphasis on innovation, extensive geographic footprint, strong relationship with marquee
clients and steady technology upgradations with global business partners have made them a
distinct frontrunner in the lead-acid storage batteries space for both automotive and industrial
applications.
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The company manufactures the widest range of storage batteries in the world from 2.5 Ah to
20,600 Ah capacity, covering the broadcast spectrum of applications. It has nine factories
strategically located all over India.
The turnover of Exide Industries ltd is INR 1462 crores and more than 4000+ work force. It is
at the number one position in battery manufacturing industry in term of revenue.
Exide is the only company which provide submarine batteries to Indian Navy.
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Mission, vision & core values
Vision:To become a global power house respected by customers and preferred by investors,
known for innovative products and solutions.
Mission:To outperform at market exceeding expectations of customers and shareholders

through the accelerated evolution of people, processes and technologies in its journey
towards excellence.
Core Values:The core values also set the tone of the organisation’s culture. The core values
of the organisation are:-
- Leadership
- Integrity
- Customer orientation
- Responsible corporate citizenship
- People development and involvement
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EXIDE’s Plants
With all the nine factories spread across strategically with in the country, Exide's range and
scale of manufacturing operations can be matched by very few companies in the world. Out
of the nine factories, seven factories are dedicated to manufacturing batteries and the other
two for Home UPS Systems. Together, the manufacturing plants produce an annual output of
8 Million Units in Automobile batteries (including batteries for motor-cycle applications),
and over 600 Million Ampere-Hours of Industrial Power.
Exide's manufacturing facilities are equipped with world's latest and most advanced
machineries. The Company is constantly upgrading its technology and also acquiring new
technology to meet the ever increasing demands of its customers. In addition to the state-of-
the-art in-house R&D centre recognised by the Department of Scientific and Industrial
Research, Government of India, Exide also acquires new technology through technical
collaboration agreements with leading international battery manufacturers.
 Shamnagar (1946)
 Chinchwad (1969)
 Kolkata (1976)
 Haldia (1981)
 Hosur (1997)
 Taloja (1998)
 Bawal (2003)
 Ahmednagar (2010)
 Roorkee (acquisition in 2012)
EXIDE’s Products
1. Automotive Batteries
 Four wheeler Batteries
 Three wheeler Batteries
 Two wheeler Batteries
 Exide E-Ride Batteries
2. Industrial Batteries
 Railways
 Telecommunications
 Power and Infrastructural Projects
 Traction and Motive Power
 Online / Offline UPS systems
 Miners’ cap lamps.
3. Inverter Batteries
 Tubular Inverter Batteries
 Flat Plate Batteries
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4. Genset Batteries
 Exide Genplus Batteries
5. Solar Batteries
 Tubular Solar Batteries
6. Home UPS Systems

 Lower KVA- 5 variants
 Higher KVA-1 variants
7. Submarine Batteries
Listing with Stock Exchange:
At present the equity shares of the Company are listed on the following Stock
Exchanges.
• Date of listing- 8th, November 1995

• Stock code- 500086
BSE
• Date of listing- 17th, June 2003

• Stock code- EXIDEIND
NSE
Last IPO of the company was raised in 2007 for the purpose of 100% acquisition of Chloride
Metals Limited.
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7. ORGANISATIONAL STRUCTURE
Managing
Director &
C.E.O
Director Director Director

Automotive Industrial Finance
President President
Senior Vice President

President
Vice Executive vice

President President
Executive Vice General Manager

President
Regional
General Accounts
Manager Managers
Regional Sales
Manager Branch Branch
Managers Managers
Service Sales
Heads Heads Junior
Staff Junior
Staff
Coordinator
Area Junior
Manager Staff
Junior Staff Junior Staff Junior

Staff Junior
Staff
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8. MY LEARNINGS AT Rai Tax Consultants (CA Partnership Firm)
I joined Rai Tax Consultants (CA Partnership Firm), as a Management Trainee. I did my
internship at Gurgaon office of Rai Tax Consultants (CA Partnership Firm),in the finance
department in which all the workings are done.
The project which the firm offered is the financial statement analysis. I have to do the
comparison of EXIDE with its competitors like Amara raja batteries, HBL power systems,
High energy batteries and starlit power systems.
Basic Information About Tax
 Tax in India are of two types :- Direct Tax and Indirect Tax.
 Direct Tax like Income Tax, wealth Tax, etc. are those whose burden falls directly on
the tax payer.
 The burden of Indirect Tax can be passed on to a third party.
Income Tax is all income other than agricultural income levied and collected by the central
government and shared with the states.
Income Tax Slabs
Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY –
Part I
Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 2,50,000* No tax
Income from Rs 2,50,000 – Rs 5,00,000 5% 4% of Income Tax
Income from Rs 5,00,000 – 10,00,000 20% 4% of Income Tax
Income more than Rs 10,00,000 30% 4% of Income Tax
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Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years
Old) for FY – Part II
Income from Rs 3,00,000 – Rs 5,00,000 5% 4% of Income Tax
Income Tax Slabs for Senior Citizens(80 Years Old Or More) for FY – Part III
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8.1 What is E-Filing?
Electronic filing, or e-filing of returns, as it is also called, is basically the submission of an
individual’s income tax returns online.
8.1.1Benefits of E-Filing:
E-filing is preferred to offline filing among a large number of taxpayers in India. Here are
some of the major benefits of filing your income tax returns electronically:
 Quick Processing: When you file your returns online, they will be acknowledged promptly
by the Income Tax Department. One of the major benefits of e-filing is that if there are any
refunds, they will be processed much quicker in comparison with returns that are filed on
paper.
 Convenient: You can file your returns anytime, anywhere, as long as you have a mobile
device or a laptop and an internet connection. The e-filing facility is open 24/7, making it a
way more convenient option in comparison with manual filing of returns.
 Accuracy: The software created for the e-filing of returns comes with built-in electronic
connectivity and validations that make it seamless. The software also reduces errors to a
considerable extent. Since filing your returns manually can leave the door open to human
errors, electronic filing of returns can ensure that there are no manual errors.
 Confidentiality: Filing your returns on paper has the potential for your details to get
leaked. Online filing of returns, however, is much safer in comparison with manual filing
as your data will not be accessible by chance or design.
 Easy to Use: The e-filing portal has been designed in a manner such that it is really easy to
file your returns. There are detailed instructions that you can follow to ensure that the
process is completed in a smooth and hassle-free manner.
 Proof of Receipt: Filing your income tax returns online will mean that the confirmation
will be sent to you promptly through email on your registered email address. Since the
process is automated, there will be no wastage of time in getting your confirmation.
 Electronic Banking: In case any refunds are due to you, they will be directly deposited to
your bank account. In case you have any tax payments to make, they too will be directly
debited from your bank account. You also have the choice to file your returns now and pay
the taxes later. You can accordingly choose to instruct your bank account and enjoy the
convenience offered by the facility.
 Accessibility: All the information regarding your past data can be accessed with relative
ease when you file your returns online. The applications ensure that the data has been
stored securely, so that it is easy for individuals to access it when filing their returns again.
8.2 Types of e-Filing:

 Use Digital Signature Certificate (DSC) to e-file. It is mandatory to file IT forms using
Digital Signature Certificate (DSC) by a chartered accountant.
 If you e-file without DSC, ITR V form is generated, which should then be printed, signed
and submitted to CPC, Bangalore by ordinary post or speed post within 120 days from the
date of e-filing.
 You can file e-file IT returns through an E-return Intermediary (ERI) with or without DSC.
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8.3 List of Required Documents for e-filing of tax returns
General details:
 Bank account details
 PAN Number
Reporting salary income:

 Rent receipts for claiming HRA
 Form 16
 Pay slips
Reporting House Property income:

 Address of the house property
 Details of the co-owners including their share in the mentioned property and PAN details
 Certificate for home loan interest
 Date when the construction was completed, in case under construction property was
purchased
 Name of the tenant and the rental income, in case the property is rented
Reporting capital gains:

 Stock trading statement is required along with purchase details if there are capital gains
from selling the shares
 In case a house or property is sold, you must sought sale price, purchase price, details of
registration and capital gain details
 Details of mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and
SIPs
Reporting other income:

 The income from interest is reported. In case of interest accumulated in savings account,
bank account statements are required
 Interest income from tax saving bonds and corporate bonds must be reported
 The income details earned from post office deposit must be reported.
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1. FORM 16
Understanding Form 16 One of the most important income tax form is Form 16. It contain
most of the information you need to prepare your income tax return in India. Form 16 has two
parts Part A and Part B.
1.1 Form 16 Part A has

• Name and address of the employer
• TAN & PAN of employer
• PAN of the employee
• Summary of tax deducted & deposited quarterly, which is certified by the employer
• Assessment Year
• Period of employment with the employer
• Form 16 Part A must be generated and downloaded through Traces portal
• Part A of the Form 16 also has a unique TDS Certificate Number.
1.2 Form 16 Part B has

• Detailed breakup of salary paid
• Deductions allowed under the income tax act (under chapter VIA)
• Relief under section 89
• If you have held more than one job during the year, you’ll have more than one Form 16.
• Part B is prepared by the employer manually and issued along with Part A
2. FORM 26AS
It is a form which indicates that the tax that has been deducted has also been deposited with
the Govt. The Form 26AS contains details of tax deducted on behalf of the taxpayer (you) by
deductors (employer, bank etc.). So, TDS deductions that are given in Form 16 / Form 16 A
can be cross checked using Form 26AS. The TDS amounts reflected in Form 26AS and Form
16/16A should always be the same.
To access your Form 26 AS, you need to visit Income Tax website and click on
https://www.incometaxindiaefiling.gov.in/home. You need to provide your login credentials
to access this form. You can then download relevant financial year’s form-26AS statement.
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9. SWOT ANALYSIS
SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses,
opportunities, and threats of the company, with the help of this analysis the company can take
important decisions and also can get to know the alarming situation whenever the new threat
of the company will arise.
STRENGTHS WEAKNESSES
 Only battery brand to provide  Intense competition means

lifetime warranty limited market share.
 Free service at any Exide centre.  The brand does not have a very
strong import market as
 Offers batteries for every kind of
compared to global brands.
vehicle on Indian roads.
 The growth of the battery
 Huge dealer network even in rural
industry is dependent on the
areas.
growth of automotive sector,
 Acquisition of smaller firms has telecom, railways, power and
strengthened its presence. other industries.
 Advertising and marketing on
TVCs, print etc. makes it a high
recall brand in India.
OPPORTUNITIES THREATS
 Boom in auto mobile sale in all  Amaron offers high performance

segments. and is eating into market share.
 Customers want better services.  Growing perception of Amaron
as a better battery brand.
 Price sensitive customers are
increasing  Increase in labour cost.
 Expansion into new territories  Rapid changes in the technology
and global expansion. of machinery.
 Use of bio-fuel, solar energy, is
replacing the use of storage
energy, so battery and inverter
are losing its privilege.
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10. PORTER’S FIVE FORCES ANALYSIS
1. The threat of new entrant-The threat of new entries will depend on the extent to which
there are barriers to entry. These are typically economies of scale (minimum size
requirements for profitable operations), high initial investments and fixed costs, cost
advantages of existing players due to experience curve effects of operation with fully
depreciated assets, brand loyalty of customers, protected intellectual property like patents,
licenses etc., scarcity of important resources, e.g. access to raw materials is controlled by
existing players, distribution channels are controlled by existing players, existing players
have close customer relations, e.g. from long-term service contracts, high. Therefore we can
conclude that the there is a less threat of new entrant in this industry, but up to certain level
there is a threat because the demand for the product is very high.
2. The bargaining power of buyers/customers-Customers also have significant bargaining

power in markets because it is easy for them to switch to an alternative (substitute) product
without suffering any transfer costs and the substitute product is the product of the competitor
which is undifferentiated and are easily available with the competitor. The customers are
price sensitive and have low margins, therefore we can conclude that there is an influence of
the bargaining power of the buyers on this industry.
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3. The threat of substitute products- The threat of substitutes is determined by factors like
brand loyalty of customers, close customer relationships, switching costs for customers, the
relative price for performance of substitutes, current trends etc. Performance constraints of
this type of battery, poor cycle life, fading performance after repeated discharges, slow
charging, and heavy weight may give rise to lithium batteries.
4. The bargaining power of suppliers-Here suppliers have a very low level of influence
over the industry. Most of the components are made locally and a good number of suppliers
are available. Same raw materials are obtained from different suppliers from different
countries also, so there is very low risk of the suppliers being united and trying to control the
industry. Switching cost is not at all high because different suppliers are ready to supply at
the same time. Therefore we can conclude that suppliers are weak in this industry.
5. Competitive rivalry-Market situation for this industry is very good and growth rate is
high, one has to ensure constant supply of product as per requirement and provide quality to
sustain improvement. Products from different manufacturers don’t differ much in
specification and quality, so price competition is not very high. All competitors generally
employee same strategy to achieve improvement. So, the competition is not very high in this
sector, but one can compete only on the basis of availability of the product as per the demand.
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11. FINANCIAL STATEMENT OF EXIDE INDUSTRIES LTD.
11.1 BALANCE SHEET
Table No. 1 Balance sheet of Exide Industries Ltd.

BALANCE SHEET (IN CRORES) 2018 2017 2016 2015
I. EQUITIES AND LIABILITIES
1.Shareholders' funds
(a) Equity Share Capital 85.00 85.00 85.00 85.00
(b) Revaluation Reserve 21.64 22.59 23.72 24.72
(c) Reserves and Surplus 4327.43 3946.99 3622.74 3313.87
Sub Total 4434.07 4054.58 3731.46 3423.59
2. Non-current liabilities
(a) Deferred Tax Liabilities [Net] 124.90 125.92 105.07 97.65
(b) Other Long Term Liabilities 4.99 5.09 5.76 7.14
(c) Long Term Provisions 34.47 27.92 20.38 20.59
Sub Total 164.36 158.93 131.21 125.38
3. Current liabilities
(a) Short Term Borrowings 102.50 17.55 0.00 0.00
(b) Trade Payables 744.90 647.87 652.96 560.41
(c) Other Current Liabilities 404.49 272.79 248.52 262.50
(d) Short Term Provisions 278.38 250.90 192.47 176.47
Sub Total 1530.27 1189.11 1093.95 999.38
Total Capital And Liabilities 6128.70 5402.62 4956.62 4548.35
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II. ASSETS 2018 2017 2016 2015
1. Non-current assets
(a) Fixed assets
(i) Tangible assets 1242.23 1069.96 976.83 977.57
(ii) Intangible assets 20.75 20.20 21.19 16.84
(iii) Capital work-in –progress 185.81 100.17 50.98 58.77
Sub Total 1448.79 1190.33 1049.00 1053.18
(b) Non-current investments 1760.73 1755.02 1594.60 1459.40
(c) Long-term loans and advances 71.87 128.75 64.19 51.62
(d) Other non-current assets 0.73 1.29 1.20 1.45
Sub Total 1833.33 1885.06 1659.99 1512.47
2. Current assets
(a) Current investments 926.30 140.65 372.41 180.73
(b) Inventories 1133.5 1522.76 1185.57 1167.10
(c) Trade receivables 607.49 555.03 516.64 509.19
(d) Cash and cash equivalents 73.83 29.82 119.95 74.79
(e) Short term loans and advances 105.46 78.97 53.06 48.20
(f) Other current assets 0.00 0.00 0.00 2.69
Sub Total 2846.58 2327.23 2247.63 1982.70
Total Assets 6128.70 5402.62 4956.62 4548.35
25
11.1.1 VERTICAL ANALYSIS OF BALANCE SHEET OF EXIDE INDUSTRIES
LTD.
Vertical analysis is a popular method of financial statement analysis that shows each item on
a statement as a percentage of a base figure within the statement.
To conduct a vertical analysis of balance sheet, the total of assets and the total of liabilities
and stockholders’ equity are generally used as base figures. All individual assets are shown as
a percentage of total assets. The current liabilities, long term debts and equities are shown as
a percentage of the total liabilities and stockholders’ equity. Basically it shows the proportion
carried by each asset and each liability in the balance sheet.
Equity 73% Fixed assets 23%

Long term liabilities 3% Long term 30%
investments
Current liabilities 24% Current assets 47%
Total liabilities 100% Total assets 100%
Fixed Assets
Equity
Long term Investments
Long-term payables
Long term debt
Short-term payables
Current Assets
Short-term debt
26
BALANCE SHEET 2018 2017 2016 2015
I. EQUITIES AND
LIABILITIES vertical analysis
Sub Total 72.80 75.00 75.50 75.30
Sub Total 2.60 2.70 2.50 2.70
(b) Trade Payables 12.00 12.00 13.00 12.00
Sub Total 24.60 22.30 22.00 22.00
Total Capital And Liabilities 100 100 100 100
II. ASSETS 2018 2017 2016 2015

(a) Fixed assets
(iii) Capital work-in -progress 3.00 1.85 1.00 1.00
Sub Total 23.30 22.22 21.13 23.40
Sub Total 30.20 34.88 33.49 33.04
2. Current assets
(b) Inventories 18.50 28.19 24.00 26.00
Sub Total 46.50 43.07 45.41 43.56
Total Assets 100 100 100 100
27
Analysis
If we look at the balance sheet in percentage form it depicts following things:-

1. The company is having a good amount of reserve and equity capital of about 73%
gives a good growth in the share and stock value growth.
2. The reserves of the company are not specific or committed reserves, the company has
kept the money in general reserve and surplus.
3. The company is having very less amount of long term debt therefore the company has
very less fixed obligations (i.e. interest on borrowings) to pay which depicts that the
company is having a good long-term solvency.
4. One simple intangible benefit of having very low long term debt is simply the public
perception that your company is in good financial health.
5. The current assets of the company are almost double in the percentage as compared to
the current liabilities which shows a higher liquidity of the company as well.
11.1.2 TREND ANALYSIS OF BALANCE SHEET OF EXIDE INDUSTRIES LTD.
It is an important tool of horizontal analysis. Under this analysis, ratios of different items of
the financial statements for various periods are calculated and the comparison is made
accordingly. The analysis over the prior years indicates the trend or direction. Trend analysis
is a useful tool to know whether the financial health of a business entity is improving in the
course of time or it is deteriorating. The comparison is made with the base year and
percentage change in the items are analysed during the succeeding years.
In the below table the base year is 2014.

BALANCE SHEET 2018 2017 2016 2015
I. EQUITIES AND LIABILITIES Trend analysis
(a) Equity Share Capital 100 100 100 100
(b) Revaluation Reserve 88 91 96 100
(c) Reserves and Surplus 131 119 109 100
Total Equity capital 130 118 109 100
(a) Deferred Tax Liabilities [Net] 128 129 108 100
(b) Other Long Term Liabilities 70 71 81 100
(c) Long Term Provisions 167 136 99 100
Total Non-current liabilities 131 127 105 100
(a) Short Term Borrowings 584 100 -- --
(b) Trade Payables 133 116 117 100
(c) Other Current Liabilities 154 104 95 100
(d) Short Term Provisions 158 142 109 100
Total Current liabilities 153 119 109 100
Total Capital And Liabilities 135 119 109 100
II. ASSETS 2018 2017 2016 2015
28
(a) Fixed assets
(i) Tangible assets 127 109 100 100
(ii) Intangible assets 123 120 126 100
(iii) Capital work-in –progress 316 170 87 100
Sub Total 138 113 100 100
(b) Non-current investments 121 120 109 100
(c) Long-term loans and advances 139 249 124 100
(d) Other non-current assets 50 89 83 100
Total Non- current assets 121 125 110 100
2. Current assets
(a) Current investments 513 78 206 100
(b) Inventories 97 130 102 100
(c) Trade receivables 119 109 101 100
(d) Cash and cash equivalents 99 40 160 100
(e) Short term loans and advances 219 164 110 100
(f) Other current assets 0 0 0 100
Total Current assets 144 117 113 100
Total Assets 135 119 109 100
Analysis
1. According to this analysis on the liability side the current liabilities have increased at a
greater pace specifically the short term borrowings as compared to the long-term liabilities,
which means that the short-term solvency of the company is getting affected, therefore the
company will be requiring more of working capital to pay off their short-term liabilities.
2. If we see in 2016-17 the company has taken out their money from long- term investments
and have invested in short-term/ current investments which can be considered as a good
step due to following reasons:-
 Flexibility- The biggest advantage of short term investment is that you have some
flexibility. You don’t have to tie-up your money for an extended period of time.
 Returns- The another advantage of short-term investment is that you can get
substantial returns. With this the company can realize great return after only a very
short amount of time.
 Tangible results- Many investors like to be able to see some type of tangible results
in their investing, With long-term investment, it might take a great deal of time before
you any result, which can be discouraging.
29
3. The expenditure on inventories has decreased because now they have built an efficient cost
structure without compromising on performance and quality of products.
The efficient cost structure has been achieved by developing TPM (Total Production
Maintenance) with continuous emphasis on quality and the company’s KAIZEN initiatives
i.e. reducing cost, minimizing wastage.
4. The long term provisions have increased from 136 to 167 because of increase in the number
of employees previous year(2015-16) in the current year (2016-17).
5. On the asset side if we look at the long term loans and advance, it increased in (2015-16)
and again decreased by same amount in (2016-17), this was due to the reason that in 2014-
15) Exide did the acquisition of remaining 50% shareholding of ING Vasya therefore the
money was funded to the newly owned insurance company to meet its requirements and in
the next year the borrowed money was paid back by insurance unit of Exide.
6. Current investments increased by huge amount in 2016-17 and simultaneously the capital
work in progress also increased because the company has invested in a new project in
which they will be collaborating with East Penn manufacturing company and will make
new high quality batteries for fast and speeding cars and those batteries will bit costlier
than the normal automotive batteries. Therefore all the profit earned from the current
investments is also put in the capital W.I.P.
30
GRAPHICAL PRESENTATION OF TREND
PERCENTAGE OF LIABILITIES
Total Equity capital Total Non-current liabilities

Total Current liabilities Total Capital And Liabilities
153%
135%
131%
130%
127%
119%
119%
118%
109%
109%
109%
105%
100%
100%
100%
100%
2018 2017 2016 2015
31
GRAPHICAL PRESENTATION OF TREND PERCENTAGE
OF ASSETS
Total Non- current assets Total Current assets Total Assets

144%
135%
125%
121%
119%
117%
113%
110%
109
100
100
100
2016
2017 2015
2016 2014
2015 2013
2014
32
11.2 INCOME STATEMENT
PROFIT AND LOSS STATEMENTS OF EXIDE INDUSTRIES LTD.
PARTICULARS (IN CRORES) 2018 2017 2016 2015

INCOME
1. Revenue from operations (Gross) 7727.35 7655.42 6754.77 6862.21
less:Excise/service tax/other levies 918.17 781.21 790.53 790.84
Revenue from operations (Net) 6809.18 6874.21 5964.24 6071.37
2.Other Income 56.15 32.01 33.03 75.88
3. Total revenue (1+2) 6865.33 6906.22 5997.27 6147.25
EXPENSES
Cost of material consumed 4111.33 4799.58 4009.98 4160.24
Purchase of stock-in trade 3.20 35.67 3.29 14.52
Changes in inventories og FG, WIP and
stock-in trade 252.01 -282.43 -102.88 -136.03
Employee benefit expenses 474.73 416.78 355.86 349.27
Finance costs 0.3 1.67 1.19 4.17
Depreciation and amortization expenses 160.15 139.52 125.60 113.48
Other expenses 957.34 996.94 881.15 899.32
4. Total Expenses 5959.06 6107.73 5274.19 5404.97
5. Profit and loss before exceptional,

extraordinary items and tax (3-4) 906.27 798.49 723.08 742.28
6. Less: tax expenses
(a) current tax 284.52 230.77 228.58 204.35
(b) deferred tax -1.02 21.85 7.42 15.15
7. Profit/Loss From Continuing
Operations (5-6) 622.77 545.87 487.08 522.78
8. Profit/Loss For The Period 622.77 545.87 487.08 522.78
33
11.2.1 COMMON SIZE INCOME STATEMENT OF EXIDE INDUSTRIES LTD.
Common size income statement is an income statement in which each account is expressed as
a percentage of the value of sales. This type of financial statement can be used to allow for
easy analysis between companies or between time periods of a company. Common size
income statement analysis allows an analyst to determine how the various components of the
income statement affect a company's profit.
PROFIT AND LOSS STATEMENTS OF EXIDE INDUSTRIES LTD.
PARTICULARS 2018 2017 2016 2015

INCOME Common size statement
1. Revenue from operations (Gross) 100 100 100 100
less:excise/service tax/other levies 11.88 10.20 11.70 11.52
2.Other Income 0.73 0.42 1.00 1.11
3. Total revenue (1+2) 88.85 90.22 89.30 89.59
EXPENSES
Changes in inventories of FG, WIP and
stock-in trade 3.26 -3.69 -1.52 -1.98
Finance costs 0.01 0.02 0.02 0.06
Other expenses 12.39 13.02 13.04 13.11
4. Total Expenses 77.11 79.78 78.09 78.77

(a) current tax 4 3 3 3
(b) deferred tax -0.01 0.29 0.11 0.22
Operations (5-6) 7.75 7.15 8.10 7.60
34
Analysis
1. In the year 2016-17 the profit before tax increased from 10.44% to 11.74% due to -
 Decrease in material consumed 62.70% to 53.20%.

 Reduction in finance cost from 0.02% to 0.01%.
 Decrease in purchase of stock in trade from 0.47% to.04% and
 Decrease in other expenses of the company from 13.02% to 12.09%.
2. To increase profit by reducing the expense, the employment benefit expense

should be taken into consideration because from 2014 to 2017 it has been
continuously increasing. The company can take initiative to decrease the expense
with the help of technology, by providing health care plans according the
requirement, by encouraging health and wellness programs at work place.
3. Changes in inventories of FG, WIP and stock-in trade is positive which means that the
closing stock of inventory is more that the opening stock and the finished good
which was manufactured to sell has not been sold yet, therefore in this case a
negative change is preferable.
35
11.2.2 TREND ANALYSIS OF INCOME STATEMENT OF EXIDE INDUSTRIES
LTD.
It is an important tool of horizontal analysis. Under this analysis, ratios of different items of
the financial statements for various periods are calculated and the comparison is made
accordingly. The analysis over the prior years indicates the trend or direction. Trend analysis
is a useful tool to know whether the financial health of a business entity is improving in the
course of time or it is deteriorating.
In this table the base year is 2013.
TREND ANALYSIS OF PROFIT AND LOSS A/C
PARTICULARS 2018 2017 2016 2015

INCOME Trend analysis
1. Revenue from operations (Gross) 113 112 98 100
less: excise/service tax/other levies 116 98 99.9 100
1(a) Revenue from operations (Net) 112 113 98 100
2.Other Income 74 42 44 100
3. Total revenue [1(a)+2] 111 112 98 100
EXPENSES
Cost of material consumed 99 115 96 100
Purchase of stock-in trade 22 245 23 100
Changes in inventories of FG, WIP and stock-
in trade 385 -208 125 100
Employee benefit expenses 136 119 102 100
Finance costs 7 40 29 100
Depreciation and amortization expenses 141 123 111 100
Other expenses 106 111 98 100
4. Total Expenses 110 113 98 100

extraordinary items and tax (3-4) 122 108 97 100
(a) current tax 139 113 112 100
(b) deferred tax -7 144 49 100
7. Profit/Loss From Continuing Operations
(5-6) 119 104 93 100
8. Profit/Loss For The Period 119 104 93 100
36
Analysis
1. This analysis shows that the revenue from sales has increased year by year as compared to
year 2014 except in the year 2015, but the other income of the company has decreased over
the years. The overall revenue has increased by 11% from the base year 2014.
2. Also, due to decrease in the cost of material consumed, finance cost etc. have resulted in an
increase in the net profit by 19% of the company as compared to the net profit of 2014.
3. The reason of having a very less margin in the net profit is due to the huge amount of fixed
and statutory obligations i.e. employee benefit expenses, depreciation and amortization
which are required to be fulfilled.
4. The purchase of stock in trade has decreased by 78% from the base year 2014 which is a
good sign.
5. One more major increase is the employment benefit expenses which has increased by 36%
from the base year therefore it is required to be taken into consideration.Company need to
hire contractual labor more instead of permanent employees which can help out in decrease
the expenses.
12.EXIDE RATIOS AND ITS INTERPRETATIONS
Introduction to the table of Ratios Interpretations:
In this I calculated liquidity ratios, solvency ratios, activity ratios, profitability ratios and
operating cycle, financial leverage, return ratio,
Basically, in this table I have calculated Exide’s last financial year (2015-16) ratios and have
also calculated the average ratio of the industry (industry average ratio has been calculated
with the help of taking average ratio of four companies of same industry like Amara raja
batteries, HBL Power systems, High Energy Batteries, Starlit Power Systems) for the
comparison of Exide ratios with the ratios of the industry average and check the company’s
position. Also there as we can see there are very less number of competitors of Exide and out
of the them two companies are running in loss i.e. High Energy Batteries & Starlit Power
Systems, due to which the industry average ratios have affected.
In this I have calculated liquidity ratio, solvency ratios, activity ratios, profitability ratios,
operating cycle, financial leverage, and return ratios.
37
12.1 FINANCIAL RATIOS
OBJECTIVES - The importance of ratio analysis lies in the fact that it presents data on a
comparative basis and enables the drawing of inferences regarding the performance of the
firm. Ratio analysis helps in concluding the following aspects:-
a. Liquidity Position-Ratio analysis helps in determining the liquidity position of the firm.
The firm can be said to have the ability to meet its current obligations when they become
due. It is measured with the help of liquidity ratios.
b. Long-Term Solvency-Ratio analysis helps in assessing the long term financial viability
of a firm. Long-term solvency is measured by the activity ratios.
c. Operating Efficiency- Ratio analysis determines the degree of efficiency of

management and utilization of assets. It is measured by the activity ratios.
d. Over- All Profitability- The management of the firm is concerned about the overall
profitability of a firm which ensures a reasonable return to its owners and the optimum
utilization of its assets. It is measured by the activity ratios.
e. Inter- firm comparison-Ratio analysis helps in comparing the various aspects of one
firm with the other.
A ratio is one figure expressed I terms of another figure. It is mathematical yardstick of

measuring relationship of two figures or group of items.
There are various mode of expressing a ratio

a. Simple or pure- current ratio
b. Percentages
c. Number of days/months/years- stock turnover ratio, debtors collection period
d. Rupees- EPS, DPS
ADVANTAGES OF RATIO ANALYSIS

 Useful in analysis of financial analysis
 Useful in simply accounting figures.
 Useful in judging the efficiency of business.
 Useful for forecasting purpose.
 Useful in comparison of business.
LIMITATIONS OF RATIO ANALYSIS

 Different meaning are put on different terms
 Price level changes will affect ratio analysis.
 Results may be misleading in the absence of absolute data.
 Ratio analysis ignores qualitative factors.
 No single standard ratio for comparisons.
 Difficult to forecast future on the basis of the past facts.
 Giving false results if the ratios are based on incorrect accounting data.
38
12.2 INTERPRETATIONS
INTERPRETATION OF FINANCIAL RATIOS OF EXIDE INDUSTRIES LTD.

INDUSTR
Y
AVERAG
S.NO RATIOS 2018 E INTERPRETATIONS
A. Liquidity ratio
The ratio of Exide is more
than industry average and
1
Current ratio = Current is nearer to 2 which is the
asset/Current Liability 1.86 1.35 ideal ratio so, it is safe.
Quick Ratio = Liquid The quick ratio of Exide is
Assets/ Current Liabilities more than industry average
2 (Liquid Assets = Current and little more than the
Assets – Stock – Prepaid ideal ratio i.e. 1so, it is
Expenses) 1.12 0.86 safe.
B. Solvency ratio
This ratio of Exide is very
low as compared to the
industry, therefore a lower
Debt Equity Ratio=Long debt to equity ratio usually
term Loans/Shareholder’s implies a more financially
1 Funds or Net Worth 0.02 4.38 stable business.
Higher the ratio, good for
the Exide because a high
ratio shows less debt on the
Total assets to debt company and less debt will
ratio=total assets/ long have less finance cost
term debts(non- current which will give more
2 liabilities) 37.29 9.96 profits.
A higher proprietary ratio
indicates a strong financial
position of the company
and greater security for the
3 Proprietary ratio= creditors. High ratio means
stockholders equity/total company is use more
assets 0.72 0.34 equity instead of debt.
C Activity ratio
It is important to have high
turnover because it shows
Stock Turnover Ratio = that the company does not
Cost of Goods Sold / overspend by buying too
Average Stock much inventory and wastes
resources by storing non-
1 6.82 5.35 saleable inventory.
39
Higher ratio means the
company is collecting their
Debtor Turnover Ratio = receivables more frequently
Net Credit Sales / Average throughout the year and
Debtors + Average B/R higher efficiency in
collection is good from the
2 11.71 3.62 cash flow stand point.
The company is generating
Working capital turnover
a lot of sale as compared to
ratios=net sales/working
the money it uses to fund
capital
3 5.17 1.87 the sales
Fixed Assets Turnover A higher turnover ratio
Ratio =net sales/ Net Fixed indicates the efficient
4 Assets 2.73 1.50 utilization of fixed assets.
If a company can generate
more sales with fewer
assets it has a high turnover
Assets turnover
ratio which tells it is a good
ratio=sales/total assets
company because it is
using its assets efficiently
5 1.52 1.18 or vice versa.
D Profitability ratios
The company is having
high operating margin as
compared to industry
therefore it can be said that
Operating ratio= operating
the company is making
profit/net sales
enough money from its
ongoing operations, thus
higher the ratio is more
1 14.84% -5% favourable.
It indicates the overall
Net profit ratio= net profit/ efficiency of the business.
net sales Higher the ratio better the
2 9.14% -9% business.
This ratio shows how much
profit is each rupee of
employed capital generates.
Obviously a high ratio
would be more favourable
because it means that more
ROI or rupees of profits are
ROCE=EBITDA/capital generated by each dollar of
3 employed 13.54% -2% capital employed.
Higher EPS is always
better than a lower ratio
EPS=PAT-Pref.dividend because this means the
/no. of equity shares company is more profitable
and the company has more
4 7.33 -2.24 profits to distribute to its
40
shareholders.
A high ratio indicates the

Price earnings ratio=market faith of the investors in the
price per share/EPS stability and appreciation of
5 19.01 18.53 company's earnings
E Operating cycle
It measures the operating
efficiency and working
No. of days of capital management of a
inventory=inventory/cogs/3 company. A short operating
65 cycle is good as it tells the
45.68 company's cash is tied up
1 days 100.15 days for a shorter period.
F Financial leverage
A company with higher
ratio will have to pay out a
greater percentage of
Total debt to assets
profits in principle and
ratio=total debt/total assets
interest payments than a
company with a lower
1 27.65% 66% ratio.
A lower ratio is favourable
because with low long term
Long term debt to assets debts it will have less fixed
ratio= long term debt/assets obligations (principle &
ratio interest) to pay which will
signify the relative strength
2 2.68% 13% of the business.
A high ratio means that
more assets were funding
Equity multiplier= total by debt than by equity. In
assets/shareholder equity other words, investors
funded fewer assets than by
creditors.
3 1.38 8.13
The higher the ratio the
more it is good if the ratio
Interest Coverage Ratio =
is more than 1 then it can
Net Profit before charging
said that the company is
interest and tax / Fixed
making more than payment
Interest Charges
3021.9 required to be paid against
4 0 372.41 the interest payments.
G Return ratio
41
This ratio measures how
effectively a company earn
Return on assets=PAT/total
to return on its investment
assets
in assets, therefore a higher
1 10.16% 4% ratio is more favourable.
It measures how efficiently
a firm can use the money
from its shareholders to
Return on equity = Net
generate profits and grow
income/shareholders’
company. The expectation
equity
of the shareholder
Is that the return should be
2 14.11% -85% higher.
RATIO INTERPRETATIONS
Current Ratio
High Starlit
Amara
Exide HBL Energy Power Remarks
Raja
Batteries Systems
Exide is a leader in terms of
Mar-18 1.86 2.24 1.33 0.65 0.58
liquidity.
Mar-17 1.96 2.39 1.36 0.84 0.83
liquidity.
Exide & Amara raja is a leader
Mar-16 2.05 2.05 1.27 0.99 1.21
in terms of liquidity.
Mar-15 1.98 2.18 1.26 1.07 1.34
liquidity.
From the above table it can be concluded that Exide is having the best ratio among its
competitors because its current ratio is always nearest to the ideal ratio2:1. The current ratio
of High energy batteries and Starlit power systems is not satisfactory because their ratios are
less than 1 mostly which depicts low liquidity level. It can also be see that Amara raja
batteries is continuously increasing the current ratio and it shows that they are becoming more
conservative.
42
Debt-Equity Ratio
High Starlit
Amara
Raja
Batteries Systems
Mar-18 0.02 0.03 0.90 12.22 1.38 Exide is having least debt.
Mar-17 0.00 0.04 1.06 4.06 1.71 Exide is having no debt.
From the above table it can be seen that from FY2015-16 to FY2016-17 Exide was a debt
free company and in FY2017-18 the company took some debt which was even less that its
competitor’s debt.
Amara Raja has shown a good performance in last four years (2015-2018) by continuously
decreasing its debt ratio from 0.08 to 0.03.Which means the long term solvency of the
company is improving. On the other side high energy batteries has gathered a huge debt in
FY 2017-18 because the ratio has increased from 1.66 to 12.22 which is very high and the
long term solvency of the company is questionable.
ROCE Ratio
High Starlit
Amara
Raja
Batteries Systems
Higher Returns are given by
Mar-18 20.07 33.24 8.29 -25.14 -26.25
Amara Raja.
Mar-17 19.75 34.80 9.15 -9.75 -15.57
Amara Raja.
Mar-16 19.53 37.40 5.74 -7.97 10.05
Amara Raja.
Mar-15 21.96 37.66 9.22 10.09 13.73
Amara Raja.
The highest return given continuously in all the four financial years (2015-2018) is by Amara
Raja Batteries to its shareholder because the company is having the highest net profit margin
and the company is continuously decreasing their long term debt therefore having less fixed
obligations to pay.
If we compare Amara Raja with itself then in from FY2015-16 to FY2018-19 the return ratio
has decreased from 37.66 to33.24 due to significant increase in the expenses of the company.
In the above table there are two loss making companies also which are giving negative
returns i.e. High Energy Batteries and Starlit Power Systems.
43
Net Profit Ratio
High Starlit
Amara
Raja
Batteries Systems
Mar-18 9.14 10.43 1.50 -30.20 -18.94 Amara raja has highest ratio.
Mar-17 7.94 9.75 1.09 -8.62 -12.89 Amara raja has highest ratio.
Mar-16 8.16 10.69 3.51 -20.29 0.08 Amara raja has highest ratio.
Mar-15 8.61 9.68 1.70 0.51 0.98 Amara raja has highest ratio.
From the above table it can be seen that in all four financial years (2014 to 2017) Amara raja
is having the highest net profit ratio, which is because of low employee benefit cost as
compared to its competitors in terms of percentage to the net sales, due to negative change in
inventory of WIP, FG and stock-in-trade which means the company is able to sell easily what
they produce and recover the cost with margin.
Quick Ratio
High Starlit
Amara
Raja
Batteries Systems
Mar-18 1.12 1.28 0.77 0.26 0.31 Exide is having a better ratio.
Exide & starlit are
Mar-15 0.82 1.67 0.67 0.41 0.82
havingbetter ratio.
The liquidity of Exide has been continuously better in all four financial years (2015-2018)
from its competitors. The reason for saying Exide’s quick ratio better from its competitors is
that its ratio has always been nearest to the ideal quick ratio i.e. 1:1.
From 2015 to 2018 Exide has been increasing their ratio from “0.82 to 1.12”except in the
year ended on Mar-16.
44
13. COMPARISON STUDY OF EXIDE WITH ITS COMPETITORS
In the table presented below the profit and loss a/c of Exide and competitors for the year
ended on 31st March 2017has been shown and have compared all the income statements of
the competitors with Exide to find out the position of Exide in the market in terms of net
profitability, net sale and operating profit.
Mar ‘18 Mar ’18 Mar ’18

Mar ‘18 Mar ’18 HBL HIGH STARLITE
PARTICULARS (IN EXIDE POWER ENERGY POWER
CRORES) INDUSTRIES AMARA SYSTEMS BATTERIES SYSTEMS
LTD. RAJA
INCOME
1. Revenue from
operations (Gross) 7727.35 5240.37 1395.02 22.80 25.09
less: excise/service
tax/other levies 918.17 551.09 107.31 0.45 1.59
Revenue from 23.50
operations (Net) 6809.18 4689.28 1287.71 22.35
2. Other operating 0.00
revenues 0.00 1.40 0.65 0.42
3.Other Income 56.15 45.69 12.08 0.17 0.26
4. Total revenue 23.76
(1+2+3) 6865.33 4736.37 1300.44 22.94
EXPENSES
Cost of material 21.94
consumed 4111.33 2742.14 763.67 10.52
Purchase of stock-in 0.00
trade 3.20 325.45 3.49 0.00
Operating and direct 0.00
expenses 0.00 0.00 158.02 0.00
Changes in inventories of
FG, WIP and stock-in 1.51
trade 252.01 -103.12 6.00 5.02
Employee benefit 1.06
expenses 474.73 243.00 102.81 5.87
Finance costs 0.30 0.49 52.65 5.48 2.89
Depreciation and
amortization expenses 160.15 139.87 49.59 1.22 1.13
Other expenses 957.34 666.34 122.48 7.87 2.63
5. Total Expenses 5959.06 4014.17 1258.71 35.98 31.16
6. Profit and loss before

exceptional,
extraordinary items 906.27 722.20 41.73 -13.04 -7.40
45
and tax (4-5)
7. less: Exceptional items 0.00 0.00 -8.96 2.43 0.00

(a) current tax 284.52 211.50 16.00 0.00 0.00
less:- MAT Credit 0.00
entitlement 0.00 0.00 0.00 -0.32
(b) deferred tax -1.02 21.99 -2.56 -4.04 -2.95
(c) Tax for earlier years 0.00 -0.74 -0.09 0.00 0.00
7. Profit/Loss From
Continuing Operations -4.45
(6-7-8) 622.77 489.45 19.42 -6.89
8. Profit/Loss For The -4.45
Period 622.77 489.45 19.42 -6.89
Analysis
As per the above mentioned table the following analysis have been made:-
Net Sales (in crores)

8000.00
6809.18
7000.00
6000.00
4689.28
5000.00
4000.00
Mar-16
MAR-17
3000.00
2000.00 1287.71
1000.00
22.35 23.50
0.00
Exide Amara Raja HBL High Energy Starlit Power
Batteries Systems
The net sales of the EXIDE is highest, therefore we can say that in terms of revenue in
financial year 2017-18 the company is at no. 1 position also it can be said as the market
leader and Exide is followed by Amara raja with a difference of 2100 crores and the rest of
the competitors are very far behind.
46
Net Sales (in crores)
8000.00
6809.18
7000.00
6000.00
4689.28
5000.00
4000.00
Mar-16
MAR-17
3000.00
2000.00 1287.71
1000.00
22.35 23.50
0.00
Batteries Systems
Operating Profit (in crores)

1100.00 1010.57
900.00 816.86
700.00
500.00
Mar-16
MAR-17
300.00
131.89
100.00 -6.51 -4.51
-100.00 Exide Amara Raja HBL High Energy Starlit Power

Batteries Systems
The operating profit of the Exide is highest among the competitors because the company is
having very low finance cost as compared to its competitors. But if we consider the employee
benefit expenses Exide is having higher cost from its next best competitor i.e. Amara raja in
percentage of total net sales of the company itself.Therefore to increase more profit the
company needs to cut down the employee benefit costs.
47
Net Profit (in crores)
700.00
622.77
600.00
489.45
500.00
400.00
300.00 Mar-16
MAR-17
200.00
100.00
19.42
-6.89 -4.45
0.00
-100.00 Batteries Systems
The “Exide” company is having the highest net profit in the financial year 2017-18 among its
competitors and reason being the highest turnover and attaining the no.1 position in terms of
revenue.
Being a market leader the Exide Industries Ltd. is having the highest:-
 Operating profit
 Net profit &
 Net sales
But, apart from this the company still have the space for improvement to increase their
profitability. The space for improvement is the employee benefit expenses which can be
reduced to increase the profits. And related to inventory the company should produce that
much goods which can sold by them till the year end and not left as closing stock, therefore
the closing stock should be equal or less than the opening stock.
48
13.1FINANCIAL RATIOS OF BATTERY MANUFACTURING INDUSTRY
This is the financial ratios (FY ) of battery manufacturing industries which I have used for
industry comparison. The companies I have taken these are Exide competitors.
The companies are Amara raja batteries, HBL power systems, High energy batteries,
starlit power systems.
HBL HIGH STARLIT

POWER ENERGY POWER
S.N AMAR SYSTEM BATTERIE SYSTEM
O RATIOS EXIDE A RAJA S S S
A. Liquidity ratio
Current ratio =
1 Current asset/Current
Liability 1.86 2.24 1.33 0.49 0.58
Quick Ratio = Liquid
Assets/ Current
Liabilities (Liquid
2
Assets = Current
Assets – Stock –
Prepaid Expenses) 1.12 1.28 0.77 0.52 0.31
B. Solvency ratio
Debt Equity
Ratio=Long term
Loans/Shareholder’s
1 Funds or Net Worth 0.02 0.03 0.90 12.22 1.38
Total assets to debt
ratio=total assets/ long
term debts(non- current
2 liabilities) 37.29 16.4 10.36 9.31 3.78
Proprietary ratio=
3 stockholders
equity/total assets 0.72 0.72 0.41 0.04 0.19
C Activity ratio
Stock Turnover Ratio =
Cost of Goods Sold /
1 Average Stock 6.82 8.71 3.56 1.33 7.78
Debtor Turnover Ratio
= Net Credit Sales /
Average Debtors +
2 Average B/R 11.71 8.18 3.03 2.58 0.69
Working capital
turnover ratios=net
3 sales/working capital 5.17 6.02 5.59 -1.42 -2.73
Fixed Assets Turnover
4 Ratio =net sales/ Net 2.73 2.46 1.83 0.63 1.08
49
Fixed Assets
Assets turnover
5 ratio=sales/total assets 1.52 2.38 1.10 0.60 0.62
D Profitability ratios
Operating ratio=
operating profit/net
1 sales 14.84% 17.41% 10.23% -28.51% -19.19%
Net profit ratio= net
2 profit/ net sales 9.14% 10.43% 1.50% -30.20% -18.94%
ROI or
ROCE=EBITDA/capit
3 al employed 13.54% 33.24% 8.29% -25.14% -26.25%
EPS=PAT-
pref.dividend/no. of
4 equity shares 7.33 28.65 0.77 -38.38 0
Price earnings
ratio=market price per
5 share/EPS 19.01 30.63 47.14 -3.65 0
E Operating cycle
No. of days of
inventory=inventory/co 45.68 49.45
1 gs/365 days days 89.15 days 222 days 40 days
F Financial leverage
Total debt to assets
ratio=total debt/total
1 assets 27.65% 27.73% 58.52% 95.73% 0.81
Long term debt to
assets ratio= long term
2 debt/assets ratio 2.68% 6.10% 9.65% 10.74% 0.26
Equity multiplier= total
assets/shareholder
3 equity 1.38 1.38 2.41 23.51 5.23
Interest Coverage Ratio
= Net Profit before
charging interest and
tax / Fixed Interest 3021.9
4 Charges 0 1490.06 1.79 -1.38 -0.82
G Return ratio
Return on
1 assets=PAT/total assets 10.16% 16.82% 23.69% -12.89% -11.80%
Return on equity = Net
income/shareholders’
2 equity 14.11% 23.28% 3.24% -302.99% -62%
50
Analysis
 Exide is a company with least long term debt.

 Exide is having second highest net profit margin i.e.; 9.14%
 Amara raja the biggest competitor and a threat to Exide because of having highest net
profit margin i.e. 10.43%
 The turnover of the Amara raja is less as compared to Exide.
 In terms of revenue Exide is a market leader.
 The ROCE of Amara raja is highest i.e. 33.24% because of having highest net profit
margin.
13.2 ANALYSIS ON THE BASIS OF DIRECTOR’S REPORT
From all the above analysis it has been found that the biggest competitor of Exide Industries
ltd is Amara Raja Batteries ltd. Therefore for more clarity in the comparison I have also done
an analysis and compared both the company on the basis of their director’s report.
Exide Industries Ltd Amara Raja Batteries Ltd.
 Sale of Automotive Batteries had shown a  Sale of Automotive Batteries had shown a
growth rate of 4.3% by volume in 2017- growth rate of 24% by volume in 2017-18.
18.
 In the replacement market the sale of four  In the replacement market the sale of four
wheeler and two wheeler batteries have wheeler and two wheeler batteries have
witnessed a growth of 10% and 14% witnessed a growth of 30% and 23%
respectively in 2017-18. repectively in 2017-18.
 The export business has registered a  In this company the export business has
marginal growth of 2% in 2017-18 as grown significantly by 33% in 2017-18 as
compared to the previous year. compared to the previous year.
 In case of home UPS and Solar Systems  Under the home UPS and Solar System
the growth is around 6.5% over the segment the company has shown a growth
previous year. of 14% as compared to the previous year.
 The company has paid an interim dividend  The company has paid an interim
at the rate 160% i.e. 1.60 per equity share. dividend at the rate 425% i.e. 4.25 per
equity share.
 The directors have proposed to transfer 5
crore rupees to general reserve out of  The directors have proposed to transfer
profit earned. 48.94 crores to general reserve.
 In order to maintain the leadership the

company is continuously focused on  The company is not making such huge
upgrading its products and manufacturing investments like Exide for technology
technology. The company also has on upgradations and advancments neither
going technical colaboration with they have any technial colaboration with
51
Eastpenn manufacturing company for any specialized technical company for the
technical assistence. technical assistence.
The analysis on the basis of director’s report depicts that no matter whether Exide is an old
player and leader in the market at this point of time but Amara Raja is growing at a greater
pace and is deliberately eating up the market share of Exide by providing competitive product
at competitive price in the competitive market and stealing the customers of Exide.
Therefore it is recommended to Exide that the company is required to take some valuable and
big steps to keep a pace with the changing market trend and need to study deeply every
movement of the competitors in the market to remain a market leader in the future also.
14. CONCLUSION
Analysis and interpretation of financial statements is an important tool in assessing company’s

performance. It reveals the strengths and weaknesses of a firm. There are two reasons to
analysis the financial statements.
 It helps the management to check the company’s financial position
 It helps the clients to decide in which firm the risk is less or in which one they should
invest so that maximum benefit can be earned.
It is known that investing in any company involves a lot of risk. So before putting up money in
any company one must have thorough knowledge about its past records and performances.
Based on the data available the trend of the company can be predicted in near future.
This project mainly focuses on the basics of different types of financial statements. Balance
Sheet and Profit & Loss statements of four different automobile and automobile components
have been studied.
From ratio analysis of Balance Sheet and P & L Statement of Exide Industries Ltd. of 2018-19
it was concluded that
 Liquidity position of Exide is good- Current ratio, quick ratio, interest coverage ratio,
etc.
 On the profitability part Exide’s performance is not satisfactory and is following Amara
raja and not a market leader because in terms of percentage the profitability margin of
Amara Raja is better than Exide.
52
Debt-Equity ratio
STARLIT POWER SYSTEMS 1.38
HIGH ENERGY BATTERIES 12.22
HBL POWER SYSTEMS 0.90
AMARA RAJA 0.03
EXIDE 0.02
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00
Exide is
having least
Debt
Total asset to debt Ratio (2016-17)

40.00 37.29
37.29
35.00
30.00
25.00
20.00 16.4
15.00 10.36 9.31
10.00
3.78
5.00
0.00
EXIDE AMARA RAJA HBL POWER HIGH ENERGY STARLIT POWER
SYSTEMS BATTERIES SYSTEMS
Higher the ratio lower the risk in

investing in the company.
The debt equity ratio, total asset to debt ratio are satisfactory because the Exide is having
least debt and the highest asset to debt ratio.
53
Return On Capital Employed (%)
0.5 14.11% 23.28%
3.24%
0
EXIDE AMARA RAJA HBL POWER HIGH ENERGY STARLIT POWER
-0.5
SYSTEMS BATTERIES SYSTEMS
-1 -62%
-1.5
-2
-2.5
-3
-302.99%
-3.5
Series1 Series2
If we talk about returns then Amara raja is a leader by giving highest return of 23.28%
and followed by Exide with 14.11%.
But the greatest concern is for High Energy batteries and Starlit Power Systems because
these two companies are loss making companies and are giving highly negative returns and
one of the main reason behind this is huge amount of debt which the companies have taken.
Hence, these two companies need to take some serious steps to improve the performance and
get positive returns.
15. ANNEXURES:
Using the balance sheet & profit and loss statement of “Amara Raja Batteries” to calculate
the various ratios of the company. It helped me to calculate the industry average and
comparison study of Exide.
AMARA RAJA BATTERIES LTD.
Table No. 1 Balance sheet of Amara Raja Batteries Ltd.

(b) Revaluation Reserve -- -- -- --
Sub Total 2101.64 1699.57 1362.7 1059.81
(b) Other Long Term Liabilities -- -- -- --
(d) Long term borrowings 72.47 74.14 75.95 77.31
Sub Total 177.33 155.30 143.04 134.46
54
(b) Trade Payables 330.06 152.08 127.78 136.28
Sub Total 629.36 533.22 633.70 576.19
II. ASSETS 2018 2017 2016 2015

(a) Fixed assets
(iii) Capital work-in –progress 119.74 86.17 144.36 102.50
(iv) Intangible assets under
development 0.17 0.15 0.31 0.48
Sub Total 1436.24 1030.58 767.86 461.85
Sub Total 1500.25 1112.20 840.83 513.62
2. Current assets
(a) Current investments -- -- -- --
(b) Inventories 601.65 418.13 335.01 292.86
Sub Total 1408.09 1275.88 1298.62 1256.86
Total Assets 2908.34 2388.08 2139.45 1770.48
55
Total revenue
(in crores)
4736.37
5000
4253.63
4500
4000 3482.17
3500 3007.95
3000
2500
2000
1500
1000
500
0
Mar'16
MAR-17 Mar'15
MAR-16 Mar'14
MAR-15 Mar'13
MAR-14
PROFIT AND LOSS STATEMENT OF AMARA RAJA BATTERIES LTD.

INCOME
less: excise/service tax/other levies 551.09 425.84 400.52 349.57
2. Other operating revenues 1.40 1.69 2.12 1.52
3.Other Income 45.69 42.30 45.51 46.55
4. Total revenue (1+2+3) 4736.37 4253.63 3482.17 3007.95
EXPENSES
Operating and direct expenses 0.00 184.95 144.36 144.27
stock-in trade -103.12 -48.00 -29.21 -32.09
Finance costs 0.49 0.24 0.72 1.00
Other expenses 666.34 346.09 290.30 243.93
5. Total Expenses 4014.17 3636.48 2941.63 2576.96

7. less: Exceptional items 0.00 -7.28 -3.88 -9.16
56
(a) current tax 211.50 191.00 158.00 137.80
(b) deferred tax 21.99 6.72 10.62 -2.45
(c) Tax for earlier years -0.74 1.28 0.61 -0.23
Operations (6-7-8) 489.45 410.87 367.43 286.71
HBL POWER SYSTEMS LTD.
Table No. 1 Balance sheet of HBL Power Systems

Sub Total 599.45 587.63 585.16 546.07
(b) Other Long Term Liabilities 0 0 0 0
Sub Total 139.43 217.94 250.67 359.42
(b) Trade Payables 163.68 182.12 293.08 192.21
Sub Total 706.32 768.63 932.33 737.72
57
II. ASSETS 2018 2017 2016 2015
(a) Fixed assets
development 27.98 33.79 34.97 23.15
Sub Total 463.43 493.36 530.26 554.10
Sub Total 508.71 531.98 584.25 713.49
2. Current assets
(b) Inventories 391.71 509.26 597.57 433.03
Sub Total 936.49 1042.22 1183.90 929.73
Total Assets 1445.20 1574.20 1768.15 1643.22
Total revenue
(in crores)
1400
1346.68
1350
1300.44 1290.82
1300
1250
1206.55
1200
1150
1100
Mar'16
MAR-18 Mar'15
MAR-17 Mar'14
MAR-16 Mar'13
MAR-15
58
PROFIT AND LOSS STATEMENT OF HBL POWER SYSTEMS.

INCOME
3.Other Income 12.08 16.61 10.02 9.13
4. Total revenue (1+2+3) 1300.44 1346.68 1290.82 1206.55
EXPENSES
stock-in trade 6.00 63.93 -38.15 -71.85
Finance costs 52.65 70.66 75.74 93.40
Other expenses 122.48 120.62 130.07 114.50
5. Total Expenses 1258.71 1306.32 1295.25 1189.01

extraordinary items and tax (4-5) 41.73 40.36 -4.43 17.54
7. less: Exceptional items -8.96 -15.04 56.54 7.79
8. Profit before tax 32.77 25.32 52.11 25.33
(a) current tax 16.00 14.60 11.03 5.13
(b) less:- MAT credit entitlement 0.00 0.00 6.86 3.78
(c) deferred tax -2.56 -4.10 2.05 3.00
(d) Other direct taxes 0.00 0.00 0.87 0.00
(d) Tax for earlier years -0.09 0.20 0.00 0.54
Operations (8-9) 19.42 14.62 45.02 20.44
59
HIGH ENERGY BATTERIES.
Table No. 1 Balance sheet of High Energy Batteries

(b) Revaluation Reserve
Sub Total 2.27 9.15 12.12 18.35
Sub Total 5.73 3.78 9.55 5.27
(b) Trade Payables 9.43 8.66 9.90 3.35
Sub Total 45.36 56.05 54.45 42.02
60
II. ASSETS 2018 2017 2016 2015
(a) Fixed assets
development 0.00 0.00 0.00 0.00
Sub Total 15.37 16.55 18.43 19.55
(e) Deferred tax assets 8.32 4.28 2.71 0.00
Sub Total 24.10 21.80 22.08 20.47
2. Current assets
(a) Current investments
(b) Inventories 17.45 25.70 32.04 28.02
Sub Total 29.27 47.18 54.05 45.17
Total Assets 53.37 68.98 76.13 65.64
Total revenue
(in crores)
80 71.57
70
60
50
40 32.82 31.65
30 22.94
20
10
0
Mar'16
MAR-18 Mar'15
MAR-17 MAR-16
Mar'14 Mar'13
MAR-15
61
PROFIT AND LOSS STATEMENT OF HIGH ENERGY BATTERIES.

INCOME
3.Other Income 0.17 0.21 0.98 0.16
4. Total revenue (1+2+3) 22.94 32.82 31.65 71.57
EXPENSES
Operating and direct expenses
stock-in trade 5.02 3.36 -4.47 -2.35
Finance costs 5.48 6.17 5.82 4.41
Other expenses 7.87 8.28 9.08 15.51
5. Total Expenses 35.98 43.51 41.42 71.06

extraordinary items and tax (4-5) -13.04 -10.69 -9.77 0.51
7. less: Exceptional items 2.43 6.40 0.00 0.00
8. Profit before tax -10.61 -4.29 -9.77 0.51
(a) current tax 0.00 0.00 0.00 0.00
(b) less:- MAT credit entitlement -0.32 0.00 0.00 0.00
(c) deferred tax -4.04 -1.48 -3.55 0.15
(d) Tax for earlier years 0.00 0.00 0.00 0.00
Operations (8-9) -6.89 -2.81 -6.22 0.36
11. Profit/Loss For The Period -6.89 -2.81 -6.22 0.36
62
STARLIT POWER SYSTEMS
Table No. 1 Balance sheet of Starlit Power Systems

(b) Revaluation Reserve 0 0.00 0.00 0.00
(c) Reserves and Surplus -0.84 0.09 3.49 0.68
Sub Total 7.21 6.21 7.97 3.82
Sub Total 9.97 10.61 7.21 4.19
(b) Trade Payables 7.02 4.97 5.28 1.54
Sub Total 20.53 16.68 14.52 4.34
63
II. ASSETS
(a) Fixed assets
Sub Total 21.74 18.74 11.75 5.20
(e) Deferred tax assets 3.38 0.42 0.00 0.00
Sub Total 25.79 19.61 12.11 6.52
2. Current assets
(b) Inventories 5.52 8.67 3.87 2.25
Sub Total 11.92 13.89 17.59 5.83
Total Assets 37.71 33.50 29.70 12.35
PROFIT AND LOSS STATEMENT OF STARLIT POWER SYSTEMS.

INCOME
3.Other Income 0.26 0.02 0.06 0.01
4. Total revenue (1+2+3) 23.76 31.05 42.62 30.58
EXPENSES
64
stock-in trade 1.51 -1.17 -0.87 -0.34
Finance costs 2.89 2.08 1.98 0.98
Other expenses 2.63 2.75 1.97 1.18
5. Total Expenses 31.16 35.75 42.38 30.13

extraordinary items and tax (4-5) -7.40 -4.70 0.24 0.45
7. less: Exceptional items 0.00 0.00 0.00 0.00
8. Profit before tax -7.40 -4.70 0.24 0.45
(a) current tax 0.00 0.00 0.04 0.11
(b) less:- MAT credit entitlement 0.00 0.00 0.04 0.00
(c) deferred tax -2.95 -0.70 0.19 0.05
Operations (8-9) -4.45 -4.00 0.05 0.29
11. Profit/Loss For The Period -4.45 -4.00 0.05 0.29
16. REFERENCES:
Internal Source
 Company’s annual report 2017-18, 2016-17, 2015-16

 Company Guide: Mr. Amber Rai Garg
 Faculty Guide: Prof. Pankaj Kumar
 Colleagues in the firm
 Project Guide: Ms. Madhu Rai Garg
External Source
Web References:
 https://www.linkedin.com/pulse/20140806181716-59817714-financial-analysis-a-
short-note-on-tools-and-techniques-of-financial-analysis
 www.exideindustries.com/
65
 http://www.moneycontrol.com/financials/exideindustries/balance-sheetVI/EI#EI
 https://www.slideshare.net/SenjutiSarkar/competitive-market-analysis-between-
amaron-and-exidewhitebk
 http://www.electronicsb2b.com/eb-specials/top-12-battery-manufacturers-in-india/
66

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SUMMER TRAINING REPORT

“FINANCIAL STATEMENT ANALYSIS - EXIDE”

Under the supervision of Submitted to

FACULTY OF MANAGEMENT STUDIES

5. LIMITATIONS: -The study provides an insight into the financial, personnel,

NEED OF THE STUDY

6.1 Macro Level (About battery Industry)

6.2 Micro Level (About Exide Industries Limited)

• UK Set up in India for trading operations as an import house with the

• First factory set up in Shamnagar, West Bengal.

• On 31 January 1947 incorporated as Choride International ltd.

• Second factory was established in chinchwad, Pune

• Research and Develpoment centre was established in kolkata.

• Third factory was established in Haldia, West Bengal.

• The name of the company changed to Chloride Industries Ltd.

• Technical collaboration with Shin Kobe Electric Machinery Co. Ltd.,

• Chloride Industries ltd. renamed as 'Exide Industries Ltd.

• Fourth factory established in Hosur, Tamil Nadu

• 100% acquisition of CBSEA, Singapore.

• Commissioning of plant at Bawal, Haryana

• Increased ABM Ceylon holding to 61%

• Investment in 50% shareholding of ING Vysya Life Insurance

• 100% acquisition of Chloride Metals Limited.

• Acquisition of first home UPS manufacturing facility at Roorkee.

• Acquisition of Second Home UPS manufacturing facility at Haridwar

• Acquisition of remaining 50% shareholding in ING Vyasya LIfe

Mission:To outperform at market exceeding expectations of customers and shareholders

6. Home UPS Systems

Listing with Stock Exchange:

• Date of listing- 8th, November 1995

• Date of listing- 17th, June 2003

Director Director Director

Senior Vice President

Vice Executive vice

Executive Vice General Manager

Junior Staff Junior Staff Junior

Basic Information About Tax

Income Tax Slabs

Income Tax Slabs Tax Rate Health and Education Cess

Income up to Rs 2,50,000* No tax

Income from Rs 2,50,000 – Rs 5,00,000 5% 4% of Income Tax

Income from Rs 5,00,000 – 10,00,000 20% 4% of Income Tax

Income more than Rs 10,00,000 30% 4% of Income Tax

Income Tax Slabs Tax Rate Health and Education Cess

Income up to Rs 3,00,000* No tax

Income from Rs 3,00,000 – Rs 5,00,000 5% 4% of Income Tax

Income from Rs 5,00,000 – 10,00,000 20% 4% of Income Tax

Income more than Rs 10,00,000 30% 4% of Income Tax

Income Tax Slabs Tax Rate Health and Education Cess

Income up to Rs 5,00,000* No tax

Income from Rs 5,00,000 – 10,00,000 20% 4% of Income Tax

Income more than Rs 10,00,000 30% 4% of Income Tax

8.2 Types of e-Filing:

Reporting salary income:

Reporting House Property income:

Reporting capital gains:

Reporting other income:

1.1 Form 16 Part A has

1.2 Form 16 Part B has

 Only battery brand to provide  Intense competition means

 Boom in auto mobile sale in all  Amaron offers high performance

2. The bargaining power of buyers/customers-Customers also have significant bargaining

11.1 BALANCE SHEET

Table No. 1 Balance sheet of Exide Industries Ltd.