EXIDE INDUSTRIES LIMITED

S. B. Ganguly, Chairman Emeritus (upto 30th April, 2010)

BANKING OPERATIONS COMMITTEE
T. V. Ramanathan G. Chatterjee P. K. Kataky A. K. Mukherjee

BOARD OF DIRECTORS
R. G. Kapadia, Chairman & Non Executive Director R. B. Raheja, Vice Chairman & Non-Executive Director T. V. Ramanathan, Managing Director & Chief Executive Officer G. Chatterjee, Director – Industrial S. K. Mittal, Director – Research & Development (upto 30th April, 2010) P. K. Kataky, Director – Automotive A. K. Mukherjee, Director – Finance & Chief Financial Officer Vijay Aggarwal, Non Executive Director H M Kothari, Non Executive Director Bhaskar Mitter, Non Executive Director S. N. Mookherjee, Non Executive Director A. H. Parpia, Non Executive Director (upto 28th April, 2010) S. B. Raheja, Non Executive Director D. S. Parekh, Non Executive Director (Alternate to S. B. Raheja) Mona N Desai, Non Executive Director (w.e.f. 28th April, 2010) W. Wong, Non Executive Director

EXECUTIVE COMMITTEE
T. V. Ramanathan G. Chatterjee S. K. Mittal (upto 30th April, 2010) P. K. Kataky A. K. Mukherjee S. Coomer Nadeem Kazim Subhas C. Chalasani (w.e.f. 1st May, 2010)

BANKERS
State Bank of India Standard Chartered Bank Citibank N.A. The Hongkong and Shanghai Banking Corporation Limited BNP Paribas HDFC Bank Limited Deutsche Bank AG ICICI Bank Limited Royal Bank of Scotland N.V. Bank of America N.A.

SECRETARY
S. Coomer

AUDIT COMMITTEE
R. G. Kapadia Bhaskar Mitter S. N. Mookherjee Vijay Aggarwal

STATUTORY AUDITORS
S.R. Batliboi & Co. Chartered Accountants 22, Camac Street, Block ‘C’, 3rd Floor Kolkata 700 016

REMUNERATION COMMITTEE
Bhaskar Mitter R. G. Kapadia T. V. Ramanathan S. N. Mookherjee Vijay Aggarwal

REGISTRAR AND SHARE TRANSFER AGENT
C.B. Management Services (P) Ltd. P-22, Bondel Road, Kolkata 700 019

SOLICITORS
A.H. Parpia & Co. Advocates & Solicitors 203-204 Prabhat Chambers 92 S V Road, Khar (West) Mumbai - 400 052 Victor Moses & Co Advocates & Solicitors Temple Chambers 6, Old Post Office Street Kolkata 700 001

SHAREHOLDERS’ GRIEVANCE REDRESSAL COMMITTEE
Bhaskar Mitter T. V. Ramanathan G. Chatterjee

SHARE TRANSFER COMMITTEE
T. V. Ramanathan G. Chatterjee P. K. Kataky A. K. Mukherjee

REGISTERED OFFICE
EXIDE HOUSE 59E, Chowringhee Road Kolkata 700 020

EXIDE INDUSTRIES LIMITED

CONTENTS
Notice Directors’ Report including Management Discussion & Analysis Financial Trends The Decade in Retrospect Subsidiaries/Associates Equity History Report on Corporate Governance Auditors’ Certificate on Corporate Governance Financial Statement Certification by CEO & CFO Code of Conduct Declaration by CEO Auditors’ Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules Forming Part of the Accounts Balance Sheet Abstract and Company’s General Business Profile SUBSIDIARY COMPANIES Chloride International Limited Caldyne Automatics Limited Chloride Metals Limited Leadage Alloys India Limited Chloride Batteries S. E. Asia Pte Limited Espex Batteries Limited Associated Battery Manufacturers (Ceylon) Limited Consolidated Financial Statements 67 83 103 126 153 183 196 223 3 11 23 25 26 26 27 34 35 35 36 40 41 42 43 64

EXIDE INDUSTRIES LIMITED

NOTICE OF ANNUAL GENERAL MEETING
NOTICE is hereby given that the 63rd Annual General Meeting of the Company will be held at Kala Mandir, 48 Shakespeare Sarani, Kolkata -700 017 on Wednesday, the 14th day of July, 2010 at 10.30 am to transact the following business:ORDINARY BUSINESS 1. To consider and adopt the Profit and Loss Account for the year ended 31 March, 2010 and the Balance Sheet as at that date together with the Reports of the Directors and the Auditors thereon. 2. To declare a dividend. 3. To appoint a Director in place of Mr R G Kapadia who retires by rotation and, being eligible, offers himself for reappointment. 4. To appoint a Director in place of Mr S B Raheja who retires by rotation and, being eligible, offers himself for reappointment. 5. To appoint a Director in place of Mr H M Kothari who retires by rotation and, being eligible, offers himself for reappointment. 6. To appoint Auditors and to fix their remuneration. SPECIAL BUSINESS 7. To consider, and, if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution: “RESOLVED THAT Ms Mona N Desai be appointed as a Director of the Company.” 8. To consider, and, if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution: “RESOLVED THAT, pursuant to the provisions of Section 198, 269, 309 and other applicable provisions, if any, of the Companies Act, 1956, Mr T V Ramanathan be and is hereby reappointed as the Managing Director and Chief Executive Officer of the Company for a period of two years with effect from 1st May, 2010 upto 30th April, 2012 on such remuneration and terms and conditions of service as detailed in the Explanatory Statement under Section 173(2) of the Companies Act, 1956 annexed to the Notice convening the Meeting.” 9. To consider and, if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution; “RESOLVED THAT, pursuant to the provisions of Section 198, 269, 309 and other applicable provisions, if any, of the Companies Act, 1956, the period, remuneration and terms and conditions of appointment of Mr G Chatterjee, Director-Industrial be and are hereby varied with effect from 1st May, 2010 upto 30th April, 2013 as detailed in the Explanatory Statement under Section 173(2) of the Companies Act, 1956 annexed to the Notice convening the Meeting.” 10.To consider and, if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution; “RESOLVED THAT, pursuant to the provisions of Section 198, 269, 309 and other applicable provisions, if any, of the Companies Act, 1956, the period, remuneration and terms and conditions of appointment of Mr P K Kataky, Director-Automotive be and are hereby varied with effect from 1st May, 2010 upto 30th April, 2013 as detailed in the Explanatory Statement under Section 173(2) of the Companies Act, 1956 annexed to the Notice convening the Meeting.” 11.To consider and, if thought fit, to pass with or without modification(s) the following resolution as an Ordinary Resolution; “RESOLVED THAT, pursuant to the provisions of Section 198, 269, 309 and other applicable provisions, if any, of the Companies Act, 1956, the period, remuneration and terms and conditions of appointment of Mr A K Mukherjee, Director-Finance and Chief Financial Officer be and are hereby varied with effect from 1st May, 2010 upto 30th April, 2015 as detailed in the Explanatory Statement under Section 173(2) of the Companies Act, 1956 annexed to the Notice convening the meeting.” Registered Office: Exide House 59E Chowringhee Road Kolkata 700 020 Dated: 28th April, 2010 By Order of the Board Company Secretary and Vice President - Legal & Administration

S Coom

3

2010 reappointed Mr Ramanathan as the Managing Director and Chief Executive Officer for a further period of two years with effect from 1st May. Members holding shares in electronic form are advised that the address/bank details as furnished to the Company by the respective depositories. is annexed to this Notice. 2010. Dividend. Item No. 1956 proposing the appointment of Ms Mona N Desai as a Director at the ensuing Annual General Meeting. and iii. Your Directors recommend that the resolution for appointment of Ms Mona N Desai as a Director of the Company be approved by the Members. f. 2010 to 14th July. Explanatory Statement [Pursuant to Section 173(2) of the Companies Act. Particulars of their bank account. 1956] Item No. in case the same have not been sent earlier. The instrument appointing a proxy must be deposited at the Company’s Registered Office not less than 48 hours before the time for holding of the Meeting. NSDL and CDSL. 2010. both days inclusive. Brief particulars of Ms Mona N Desai. b. appointed Ms Mona N Desai as an Additional Director to hold office till the ensuing Annual General Meeting of the Company. as required under Clause 49 of the Listing Agreement. 2003 and onwards. if any. Members holding shares in physical form are requested to notify/send the following information to the Company or its Registrars to facilitate better service:i. The Register of Members and Share Transfer Books of the Company will remain closed from 6th July.. Bondel Road.EXIDE INDUSTRIES LIMITED NOTES a. 1956. 2010 as per the details furnished to the Company by both NSDL and CDSL. 2010. c. will be due for transfer to the Investors Education and Protection Fund of the Central Government in August 2010. Dividend for the financial year ended 31st March. P -22. subject to the approval of the Company in General Meeting. Members who have not encashed their dividend warrant(s) for the financial year ended 31st March. Any change in their address/bank details. Information relating to the Directors proposed to be appointed and those retiring by rotation and seeking reappointment at this Meeting. Members are requested to immediately notify any change in their address to the Registrar and Share Transfer Agent. in respect of equity shares held in electronic form will be payable to the beneficial owners of shares as on 14th July. is annexed to this Notice. A Notice has been received from a Member under Section 257 of the Companies Act. held in multiple accounts in identical names or joint accounts in the same order of names for consolidation of such shareholdings into one account. 2003 which remains unpaid or unclaimed. Dividend. 2010 or to their mandates. are requested to claim the amount forthwith from the Company. no other Director is concerned with or interested in the said resolution. d. 4 . will be considered for payment of dividend through ECS. A Member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote instead of himself and a proxy need not be a Member. 2010. as required under Clause 49(G)(i) of the Listing Agreement with the Stock Exchanges. C B Management Services (P) Limited. Share Certificate(s). The Board of Directors of the Company at its meeting held on 28th April. Kolkata -700 019 e. viz. if declared at the Meeting. g. 8 The term of appointment of Mr T V Ramanathan (“Mr Ramanathan”) as Managing Director & Chief Executive Officer expires on 30th April. ii. will be payable to those members whose names appear in the Company’s Register of Members on 14th July. Pursuant to Section 205A of the Companies Act. Apart from Ms Mona N Desai.7 The Board of Directors at its meeting held on 28th April.

Pension Fund and Gratuity shall not be taken into account. increment. Company’s contribution to Provident Fund. subject to a maximum of annual salary for each year. are met. water and furnishings. Gratuity payable at a rate not exceeding half a month’s salary for each completed year of service. electricity. Perquisites shall be evaluated as per Income-tax Rules. he shall have the responsibility of overall management of the business of the Company and for that purpose shall have the power to do all such acts. the Managing Director & Chief Executive Officer shall be entitled to perquisites like furnished accommodation with expenditure on gas. leave travel allowance for self and family. electricity.per month Salary will be increased by 10% per annum provided performance criteria as laid down by Remuneration Committee of the Board of Directors. 2010 are set out below:Salary Increment Rs 5. In addition. deeds and things as may be required on behalf of the Company or delegated to him by the Board/Chairman. based on certain performance criteria to be laid down by the Remuneration Committee of the Board of Directors and payable annually after the annual accounts have been approved by the Board of Directors and Members of the Company. For a period of two years with effect from 1st May. perquisites shall be evaluated at actual costs. personal accident and life insurance benefits and such other perquisites and allowances in accordance with the Rules of the Company or as may be agreed to by the Board of Directors. The overall amount of perquisites shall not exceed an amount equal to the annual salary. 1956. as per Company’s policy. and in the absence of any such rule. Provision for use of Company’s cars and telephones at residence (including payment for local calls and long distance calls) shall not be included in the computation of perquisites. Commission Performance Bonus Duties Period Other terms and conditions: Perquisites 5 .EXIDE INDUSTRIES LIMITED The remuneration payable to and the terms and conditions of service of Mr Ramanathan as Managing Director & Chief Executive Officer with effect from 1st May. Commission of 1% of the net profits of the Company computed in the manner laid down in Section 309(5) of the Companies Act. 2010 to 30th April. Subject to the superintendence. commission and performance bonus. water. In computing the monetary ceiling on perquisites. and leave including encashment of leave at the end of the tenure. Subject to a maximum amount equivalent to the annual salary based on certain performance criteria to be laid down by the Remuneration Committee of the Board of Directors. maintenance and repair thereof or House Rent Allowance with expenditure on gas. wherever applicable.000/. medical expenses and medical insurance for self and family. to the above salary. 2012. fees of clubs. Company’s contribution to Provident Fund and Pension Fund not exceeding 27% of salary or such percentage limit as may be prescribed by Income Tax legislation.75. control and direction of the Board.

and Mr A K Mukherjee. are met.per month Salary will be increased by 10% per annum provided performance criteria as laid down by Remuneration Committee of the Board of Directors. at its meeting held on 28th April. 2011. The period of service. Director-Automotive for a period of four years with effect from 1st May. 2007 upto 30th April.000/.per month Salary will be inceased by 10% per annum provided performance criteria as laid down by Remuneration Committee of the Board of Directors. approved of a variation in the period. remuneration and terms and conditions of service of Mr G Chatterjee.75. remuneration payable and the terms and conditions of service of Mr G Chatterjee. 9.000/.000/. Item Nos. Mr P K Kataky and Mr A K Mukherjee respectively with effect from 1st May. 1956 from time to time. 2007 upto 30th April.75.per month Salary will increased by 10% per annum provided performance criteria as laid down by Remuneration Committee of the Board of Directors. The appointment of the Managing Director & Chief Executive Officer is terminable by either party giving three months prior notice to the other. the Members also appointed and approved the remuneration payable and terms and conditions of appointment of Mr A K Mukherjee as Director-Finance & Chief Financial Officer for a period of four years with effect from 1st May. Mr P K Kataky. General Termination The Board considers the aforesaid reappointment on the terms set out above to be in the interest of the Company and therefore recommends that this resolution be adopted by the Members. The Board of Directors of the Company. based on certain Mr P K Kataky Director-Automotive Rs 4. based on certain performance Commission 6 . 1956 subject to a maximum of annual salary for each year. 10. are met. are met. In addition. based on certain Mr A K Mukherjee Director-Finance & CFO Rs 2. the Members approved of a variation in the terms of appointment of Mr G Chatterjee. and 11 At the 60th Annual General Meeting of the Company held on 20th July.50. no other Director is concerned with or interested in the aforesaid resolution. Commission of 1% of the net profits of the Company computed in the manner laid down in Section 309(5) of the Companies Act. 2010 are set out below: Terms and Conditions of Service Salary Increment Mr G Chatterjee Director-Industrial Rs 4. Commission of 1% of the net profits of the Company computed in the manner laid down in Section 309(5) of the Companies Act. At the same Annual General Meeting. subject to the approval of shareholders in the General Meeting. 1956 subject to a maximum of annual salary for each year. Commission of 1% of the net profits of the Company computed in the manner laid down in Section 309(5) of the Companies Act. 2007. 1956 subject to a maximum of annual salary for each year.EXIDE INDUSTRIES LIMITED Minimum Remuneration In the absence of or inadequacy of profits in any of the financial years of the Company during the tenure he shall be entitled to such remuneration by way of salary along with perquisites. Director-Industrial and Mr P K Kataky. 2011. the contract of appointment shall set out the usual rights and obligations of the parties. benefits and other allowances as mentioned above not exceeding such sum as may be prescribed under Schedule XIII of the Companies Act. Except Mr T V Ramanathan. 2010.

with effect from 1st May. Subject to a maximum amount equivalent to the annual salary based on certain performance criteria to the laid down by the Remuneration Committee of the Board of Directors. Provision for use of Company’s cars and telephones at residence (including payment for local calls and long distance calls) shall not be included in the computation of perquisites. For a period of three years. fees of clubs.EXIDE INDUSTRIES LIMITED Terms and Conditions of Service Mr G Chatterjee Director-Industrial performance criteria to be laid down by the Remuneration Committee of the Board of Directors and payable annually after the annual accounts have been approved by the Board of Directors and Members of the Company. 2010 to 30th April. as per Company’s policy. commission and performance bonus. electricity. Mr A K Mukherjee Director-Finance & CFO criteria to be laid down by the Remuneration Committee of the Board of Directors and payable annually after the annual accounts have been approved by the Board of Directors and Members of the Company. medical expenses and medical insurance benefit for self and family. 2010 to 30th April. 2010 to 30th April. water. maintenance and repair thereof or House Rent Allowance with expenditure on gas. the above Directors shall be entitled to perquisites like furnished accommodation with expenditure on gas. Gratuity payable at a rate not exceeding half a month’s salary for each completed year of service. with effect from 1st May. The overall amount of perquisites shall not exceed an amount equal to the annual salary. 2013. In computing the monetary ceiling on perquisites. electricity. Performance Bonus Subject to a maximum amount equivalent to the annual salary based on certain performance criteria to be laid down by the Remuneration Committee of the Board of Directors. water and furnishings. personal accident and life insurance benefits and such other perquisites and allowances in accordance with the Rules of the Company or as may be agreed to by the Board of Directors. For a period of five years. Company’s contribution to Provident Fund and Pension Fund not exceeding 27% of salary or such percentage limit as may be prescribed by Income Tax legislation. Subject to a maximum amount equivalent to the annual salary based on certain performance criteria to be laid down by the Remuneration Committee of the Board of Directors. Mr P K Kataky Director-Automotive performance criteria to be laid down by the Remuneration Committee of the Board of Directors and payable annually after the annual accounts have been approved by the Board of Directors and Members of the Company. to the above salary. For a period of three years with effect from 1st May. and leave including encashment of leave at the end of the tenure. Period Other terms and conditions applicable to the above Directors: Perquisites In addition. 2015. increment. 2013. leave travel allowance for self and family. Company’s contribution to 7 .

General Termination The Board considers the aforesaid appointments on the terms set out above to be in the interest of the Company and therefore recommends that these resolutions be adopted by the Members. and in the absence of any such rule. 2010 By Order of the Board S Coomer Company Secretary and Vice President . The appointment is terminable by either party by giving three months prior notice to the other. Except Mr G Chatterjee. 1956 from time to time. benefits and other allowances as mentioned above not exceeding such sum as may be prescribed under Schedule XIII of the Companies Act. perquisites shall be evaluated at actual costs. Perquisites shall be evaluated as per Income-tax Rules. Minimum Remuneration In the absence of or inadequacy of profits in any of the financial years of the Company during the tenure he shall be entitled to such remuneration by way of salary along with perquisites. the contract of appointment shall set out the usual rights and obligations of the parties.Legal & Administration 8 .EXIDE INDUSTRIES LIMITED Provident Fund. wherever applicable. Mr P K Kataky and Mr A K Mukherjee no other Director is concerned with or interested in the aforesaid resolutions. In addition. Registered Office: Exide House 59E Chowringhee Road Kolkata 700 020 Date: 28th April. Pension Fund and Gratuity shall not be taken into account.

FIL Trustee Company Pvt. 2. Mr S B Raheja Mr Raheja holds a Bachelor’s degree in Business Administration and has over 25 years of experience in business management. Goldiam International Ltd. Ltd. 3. Alkyl Amines Chemicals Ltd. ING VYSYA Life Insurance Ltd. Member of Shareholders’/Investors’ Grievance Committee 1. 4. Goldiam International Ltd. Food World Super Markets Ltd. 9. Ltd. 5. 3 to 5.EXIDE INDUSTRIES LIMITED Information pursuant to Clause 49 of Listing Agreement with regard to the Directors seeking appointment/ reappointment at the forthcoming Annual General Meeting. Raheja QBE General Insurance Co. 4. Member of Shareholders/Investors’ Grievance Committee 1. 2. since its incorporation in India. Prism Cement Limited 2. 10. Nil Directorships: 1. Ltd. No of equity shares held in the Company Nil Other Directorships / Other Committee memberships held* Directorships: 1. EIH Associated Hotels Ltd. 7. Kirloskar Engines India Ltd. ING VYSYA Life Insurance Co. Prism Cement Ltd. Ltd. Kapadia served as the President of the Indian Merchants Chamber for 2005-2006 and is considered an expert on taxation and accountancy and has several years of experience in the profession. Shuko Real Estate Pvt. 9 . Raheja QBE General Insurance Co. Supreme Petrochem Limited 3. Chartered Accountants. 2. 214491 Directorships: 1. Health & Glow Retailing Ltd. Asianet Satellite Communications Ltd. as its Chairman. Ltd. Ltd. Ltd. Supreme Petrochem Limited Mr H M Kothari Mr Kothari is a leading investment banker with over 40 years of experience in investment banking industry and was previously associated with DSP Merill Lynch Limited. Ltd. 5. DSP Black Rock Investment Managers Pvt. He is presently the Chairman of DSP Black Rock Investment Managers Pvt. Ltd. Goldiam Jewellery Ltd. (Refer Item Nos. ING VYSYA Life Insurance Company Ltd. 6. Asianet Satellite Communications Ltd. 3. 3. Nilkamal Ltd. 8. FIL Trustee Company Pvt. 4. 6. Prism Cement Ltd. Committee Memberships Chairman of Audit Committee: 1. 2. Prism Cement Ltd. Surin Investments Pvt. EIH Associated Hotels Limited 3. Mr. 7 and 8 of the Notice) Name of the Director Mr R G Kapadia Brief resume and nature of expertise in functional area Mr Kapadia is a practising Chartered Accountant and Senior Partner at G M Kapadia & Company. Member of the Audit Committee 1.

Ms Mona N Desai Ms Desai is a Graduate in Psychology and holds a Law Degree from the Govt. 11. Ltd. Ltd. 13. His total experience of 41 years includes 15 years overseas of which nearly five years was with the World Bank. Hemko Patents Developments Pvt. Arko Enterprises Pvt. 8. MVL Reality Pvt. Chloride International Limited 2. 45839 Directorships: 1. he was associated with the United Breweries group as Group Vice President-Finance and has a wealth of experience in dealing with Financial and Accounting matters in addition to corporate management. 2010 By Order of the Board S Coomer Company Secretary and Vice President . Mumbai. 12. Ltd. She is a Member of the Bombay Incorporated Law Society and also a Member of the Ethics Committee of Kokilaben D Ambani Hospital. DSP Investment Pvt. She is a Solicitor and legal practitioner. Leadage Alloys India Limited Committee Memberships Nil 78666 Directorships: Nil * Directorship in foreign Companies excluded. Ltd. Bestow Contractors and Developers Pvt. Law College. Committee Memberships include only Audit Committee and Shareholders’ / Investors’ Grievance Committee Registered Office: Exide House 59E Chowringhee Road Kolkata 700 020 Date: 28 April.EXIDE INDUSTRIES LIMITED Name of the Director Brief resume and nature of expertise in functional area No of equity shares held in the Company Other Directorships / Other Committee memberships* held 7. Ltd. Ltd. Chloride Metals Limited 3. DSP Adiko Holdings Pvt.Legal & Administration 10 . DSP HMK Holdings Pvt. Committee Memberships Nil Mr T V Ramanathan Mr Ramanathan is a Chartered Accountant and a Company Secretary. Ltd. 14. 9. 10. Before joining the Company in 1995. Arko Dealers Pvt. Ltd.

A heartening feature was that this recovery was broad based as seven out of the eight sectors / sub-sectors registered a growth rate between 6. and the abnormally high inflation for food items remain to be a source of concern. expected to reap the full benefits of such growth. telecom etc. The organised sector is. According to estimates. be back to a growth rate of over 9% from 2011-12 and would be the fastest growing economy in the World within the next four years.2% during the year. especially with regard to recycling of toxic wastes such as Lead. Though these inflationary pressures are expected to last for a short term the Government needs to take stringent measures to control the fiscal deficit in the medium term. mainly arising out of the fiscal packages announced by the Government to counter the slowdown. recession in the economies of USA. rubber and plastic goods. and other industrialized nations meant a sluggish export market and stoppage of financial inflows into the Indian economy. which leads to optimism in the Indian economy in the medium to long term. However. Apart from the domestic problems. which had been witnessing continuous decline since mid-2008. was indeed a commendable performance by any standards.EXIDE INDUSTRIES LIMITED DIRECTORS’ REPORT TO THE SHAREHOLDERS (including Management Discussion & Analysis) Your Board of Directors have pleasure in presenting the 63rd Annual Report of the Company together with Audited Accounts for the year ended 31st March. more importantly. textiles. The industrial and service sectors grew by 8. the rising fiscal deficit. thanks to the financial stimulus initiated by the Government and the Reserve Bank of India the country witnessed a strong economic recovery within a short period. also felt the tremors of the crisis. Adding to the woes was the delayed and sub-normal monsoon. Economic Environment The initial months of 2009-10 for the Indian economy were mired with uncertainty and confidence was running low. The passenger car market in India is expected to grow by 12% annually over the next five years which in effect would translate to more than 100% growth for the domestic battery industry during this period. thereby wiping out the gains and momentum achieved in the economic progress over the past few years. However.5% in the current year. This recovery was not only in terms of overall growth but. Industry Structure and Development The domestic battery industry is passing through an exciting phase.9% in 2009-10. U. 2010. recorded an impressive turnaround.5% to 10%. may not benefit from this growth due to strict pollution control and regulatory norms. India would achieve a growth rate of 8. The financial crisis in the industrialized nations spread across to all sections of the World economy thereby leading to severe slowdown across countries. Foreign Institutional Investors who had withdrawn from the scene at the early stages of the economic downturn returned with a renewed vigour and in the month of March 2010 there was a net investment of over US $ 4 billion in equity and US $ 2 billion in debt instruments. which presently stands at 6.7% respectively which. India. power. grew more than double from 3. India is emerging as a small car hub in the Asia-Pacific region with most of the major global players setting 11 . given the global situation. which was the highest monthly growth recorded by the Index since 1982.8% year on year growth. in spite of this euphoric growth. not being insulated from the World. therefore.7% in 2008-09 and hovered around 6% in the first quarter of 2009-10.K. Whilst on the one hand there was a set back due to sluggish growth in the telecom. infrastructure and export sectors during the early part of the year it was compensated by the more than expected growth in the Automobile sector. A calculated risk was taken to provide enough fiscal expansion to counter the negative fall out. chemicals.This growth rate was more significant since this was achieved inspite of a decline in agricultural output and more importantly the manufacturing sector. Though there were small signs of recovery but the apprehension was that the sluggish rate of growth was here to stay for some time.8% of the GDP. the Index of Industrial Production (IIP) reached an all time high of 16. it re-established faith in our banking system and proved that our fundamentals are in place. Foreign Exchange Reserves as of end March 2010 was US $ 280 billion and Foreign Investment was around US $ 20 billion. The Government and the Reserve Bank swung into action and a spate of fiscal and monetary packages were announced in stages. according to data released by the Securities & Exchange Board of India. In December 2009.2% and 8. albeit on a lesser scale.2% in 2008-09 to 8. automobiles. The unorganized sector. Within the industry and infrastructure sectors. India was once again on the growth path! The real turnaround came in the second quarter of 2009-10 by recording a growth of 7.9% which resulted in the growth rate of GDP to climb upto 7. which accounts for two thirds of the Battery Industry. The growth rate of GDP which was over 9% till 2007-08 plummeted to less than 6.

Fiat Grand Punto. “Project Kissan”. In addition. Your Directors are pleased to inform that your Company was a preferred supplier for most of the new vehicles launched by the vehicle manufacturers during the year under review. Your Company continued with its Humsafar module under which batteries are sold by the dealers through various motor garages thus making the products reach the consumers at their doorstep. Your Directors are also pleased to inform that your Company has won the prestigious ZERO PPM award from Toyota Japan signifying zero defect supplies and the Best Kaizen Award from Toyota Kirloskar. the possibilities of development and marketing of Lithium-ion batteries for the emerging electric vehicle segments is also under active consideration.EXIDE INDUSTRIES LIMITED up their manufacturing bases in this country.73.555 crores has been allocated for this sector which is 46% of the total plan allocation. The increase in profitability was partly due to availability of Lead and alloys. Maruti Suzuki Ritz & EECO. Inspite of increased competition. would augur well for the battery industry. Further. aggressive forays in the replacement segment. During the year under review. Hindustan Petroleum and Toyota Kirloskar for distribution of your Company’s products through their retail outlets have been entered into which also would go a long way to have a presence across the country. Your Company is supplying batteries for Tata Motors small car Nano and in view of certain innovative features a design registration for this type of battery has been filed in India. These included Chevrolet Beat. Apart from the same. The existing automobile manufacturers are expanding their capacity and also setting up greenfield projects. such growth was possible due to increased marketing efforts. Presently through this model the Company is present in 206 locations and it is proposed to increase the presence in 250 cities and towns by the third quarter of the current year. The CRM initiative exidereachout. These awards and the continued support by most of the vehicle manufacturers recognizes the trust reposed by the automobile industry on the quality and reliability of the products manufactured by your Company. your Company recorded 12% growth in net sales with an increase of 86% in profit before tax. Honda Zazz & Accor V6. another initiative by the Company to service the rural markets has also gained great popularity and resulted in conversion of large number of customers from the unorganised sector. Automotive Batteries Your Company has achieved a growth in sales of 13% in automotive batteries over the previous year. Due to the unprecedented growth in the Automotive Sector.com is running successfully and has helped in building up a substantial number of loyal customers. including highways and small locations. from the two captive Lead Smelters acquired two years ago. Your Company had recently re-organised its marketing and distribution set up by setting up Hubs and Spokes which are monitored by the Regional Controlling Centres. Infrastructure development is a key focus area for the Government and in the Union Budget 2010-11 an amount of Rs 1. but also is reckoned among the first five major companies in the global battery manufacturing industry. Performance Your Company is not only one of the leading manufacturers of Lead Acid Batteries in India and South Asia. securing larger volumes in the two wheeler segment and introduction of new technology products. India is not only being looked at as a manufacturing base for export of passenger vehicles but also heavy vehicles including tractors. All these batteries were developed in house and underwent rigorous tests both in India as well as in laboratories overseas before being selected for supplies. availability of trained manpower at competitive costs and stagnation in the US. Nearly all the vehicle manufacturers have chosen your Company as their major supplier. which constitutes a major raw material for the products. your Company was at times not able to 12 . The growth of the Indian middle class. but also to provide better after-sales and warranty services to the customers. This has enabled your Company not only to reach customers in B class and C class cities. As reported earlier. This huge spending on infrastructure by the Government coupled with plans for modernization of railways and setting up of nuclear power plants etc. favourable foreign exchange rates. Tata Sumo Grande and Caterpillar Dumpers. Your Company has launched the Deep Cycling E-bike batteries for electric bicycles and scooters and is also in the process of developing batteries for Stop Start Micro Hybrid vehicles. Your Company has also been selected as a supplier for several new vehicles proposed to be launched by the vehicle manufacturers during the current year. Premier RIO. This will not only increase the market base for the domestic battery industry several fold but would also lead to strict conformity to global quality standards and processes. European and Japanese markets is attracting the global majors to invest in capacities in India and China. mainly in the small car and two wheeler segments. strict austerity measures and control on costs on all fronts contributed to the sharp rise in the profitability. Toyota Fortuner. arrangements with Indian Oil Corporation.

Your Company also sends its engineers regularly for training and knowledge sharing both at its foreign collaborators’ facilities as well as to international seminars and conferences. sales for 2009-10 recorded a growth of around 21% in terms of value and 18% in terms of volume. In its quest for upgrading its technology. investments by way of equity and / or debt in companies including subsidiaries. 2010 at a price of Rs 107. This has been possible inspite of severe competition and low cost imports in the domestic market. Russia. Consequent to the above Issue. Submarine Batteries Your Company continues to be the sole supplier for Submarine batteries to the Indian Navy. Power segment recorded a growth of 36% with a very healthy order booking for future months. mostly contributed by a Telecom degrowth of 35%. Maharashtra to cater to the growing demand.00. FIs. QIP Issue Your Company issued 5. repayment of debts.90) per equity share. processes and quality your Company has several Technical Collaboration/Assistance Agreements with leading international battery manufacturing companies. Industrial Batteries Sales of Industrial batteries for 2009-10 registered a growth of around 10%. both in terms of value as well as volume.However. your Company entered into a new Agreement with Furukawa Battery Company Limited. Measures have been initiated for upgrading quality and performance of VRLA batteries. your Company engages foreign experts from time to time for advising on improvements in its manufacturing processes and development of hi-tech products. Mutual Funds etc. 1/. your Company has developed Expanded VRLA and Long Life VRLA batteries which have been recently launched in the market. Further.000 equity shares of Re. viz. on Qualified Institutions Placement basis in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations. Your Company is. As informed earlier. Projects sales were higher than last year by 27% and Traction also recorded a growth of 36%. Japan for Idling Stop System (ISS) automotive batteries. While there had been a degrowth of 7% in UPS manufacturing segment. As a result of economic downturn. FIIs. Japan (a part of Hitachi Group) for automotive applications and VRLA batteries for stationery applications expired during the year and your Company entered into a new Agreement with the said company for all varieties of Lead Acid batteries and components used for starting. The in-house R&D Division also is engaged in creation of innovative products through improvements in manufacturing processes and materials. expanding its manufacturing capacities at all plants and a new manufacturing facility is being set up at Ahmednagar. 13 .000.90 (including a premium of Rs 106. Limited. overall Infrastructure business has shown degrowth of 10%. Exports Due to the depressed international market conditions. Details of activities relating to exports is given in Part III of the Information as per Section 217 (1)(e) of the Companies Act. Technology Upgradation Your Company is constantly working towards upgrading its existing technology and acquiring new technology to meet the increasing requirements of the consumers. the paid-up share capital of your Company stands increased to Rs 85. acquisitions.EXIDE INDUSTRIES LIMITED cater to the market demands inspite of running the plants nearly full capacity. trade growth during the period was 28%. 2010 for a period of five years. During the year. Apart from the above. Japan for Lead Acid Storage batteries including Hybrid batteries and Maintenance Free batteries for four wheelers and VRLA batteries for two wheelers and with Changxing Noble Power Sourcing Company Limited. your Company remains an accredited supplier to the Admiralty Shipyard. long term working capital.each to Qualified Institutional Buyers.00. a handsome growth could be achieved in other Infrastructure segments. therefore. The Agreements with Shin-Kobe Electric Machinery Company.00. The shares were allotted on 12th March. 1956. Substantial manufacturing efficiencies have been achieved through productivity improvements negotiated with permanent workmen in Hosur.00. Fluctuations in lead prices have also been effectively countered through imposition of Price Variation Clauses. lighting and ignition of automobiles and also for VRLA batteries for industrial applications with effect from 1st April. Your Company has ongoing Agreements with Furukawa Battery Company Limited. joint ventures and associated companies and general corporate purposes. In the Fast Moving Industrial Battery segment. 2009. In Railways. The proceeds of this Issue are proposed to be utilized for capital expenditure. exports of both the automotive as well as industrial batteries registered a degrowth during the year. which is annexed to this Report. China for manufacture of Deep Cycling E-bike batteries for electric bicycles and scooters. a 17% growth was maintained. Shamnagar and Haldia.

Your Board of Directors have taken all necessary steps to ensure compliance with all statutory and listing requirements. Manufacturing. Crores) Profit before depreciation & taxation Depreciation / Amortisation Profit before tax Taxation Profit after tax Balance brought forward Making a total of Out of this appropritions are: General Reserves Leaving a balance of Interim Dividend 60% (Previous Year 40%) Tax on Interim Dividend Proposed Final Dividend 40% (Previous Year 20%) Tax on Final Dividend [Aggregate Dividend amounts to 100% (Previous year 60%)] And leaving a balance of (which is carried forward to next year) 516.69 32. 2010. In 2008 your Company bettered its performance and has been amongst eight Consolidated Financial Statements In accordance with Accounting Standard 21.59 861. Your Company has won the CIIEXIM Bank Award for “ Strong Commitment to Excel” in 2006 and 2007.each). Marketing. Chinchwad. 2010. For the Automotive SBU .68 435.08 185. Your Directors are now pleased to recommend a final dividend at the rate of 40% on the equity shares of the Company for the year ended 31st March. Shamnagar and Taloja factories have been certified for ISO/ TS-16949.00 284.1/. These Accounts have been prepared on the basis of audited financial statements received from the subsidiaries and associate companies as approved by its respective Board of Directors. TQM is a strategic initiative and your Company has progressed considerably in its journey towards Business Excellence. 6 Sigma and Lean Manufacturing . at the rate of 60% on the equity shares to the shareholders whose names appeared on the Register of Members on 28th October.44 324. For its Quality Management System (QMS). Consequently. the total dividend for the year ended 31st March.per equity share of Re.24 503. by the renowned TUV-NORD.65 67.33 80.1/.Advanced Product Quality Planning (APQP). After Sales Support and Corporate functions.30 565. In line with its core value of striving for Excellence. Products manufactured at your Company’s state-ofthe-art manufacturing facilities symbolise quality and customer satisfaction. Hosur and Shamnagar factories have been certified for ISO-9001. The Auditors’ Certificate on compliance with Corporate Governance requirements is also attached to this Report. These certifications.leading towards business excellence.00 611. Haldia. Process capability monitoring ensures that products are well within specification with minimal rework and scrap.59 250.66 2009-2010 2008-2009 891. Setting up of the Remuneration Committee of Directors and introduction of a Model Code for Insider Trading are some of the initiatives taken by your Company towards this end. Hosur.00 2.39 151. The Audit Committee of the Board meets at regular intervals as required in terms of Clause 49 of the Listing Agreement.Bawal. The TQM system involves the latest techniques of Total Productive Maintenance (TPM).68 48. amounts to 100% (Re. Business / Operational Excellence In keeping with its vision to provide credible value addition to our stakeholders and being recognized as a responsible corporate citizen your Company has implemented an exhaustive Total Quality Management System (TQM) throughout the organization.39 281.69 put in place by the Board of Directors.Consolidated Financial Statements form part of the Report & Accounts.50 537.EXIDE INDUSTRIES LIMITED Financial Results (In Rs. Apart from being in compliance with all requirements of Clause 49 of the Listing Agreement your Company has voluntarily adopted certain governance principles.00 8.59 273. the Industrial SBU part of Haldia.44 16. as required under Clause 49 (V) of the Listing Agreement a certificate from the CEO and CFO is being annexed with this Report. The Report on Corporate Governance as required under the Listing Agreement forms part of and is annexed to this Report.00 5.00 5. Dividend Your Company paid an interim dividend on 5th November 2009. The Directors and key management personnel of your Company have complied with the Code of Conduct which was 14 . although issued in the names of the different factories.16 34. The Submarine SBU is certified for ISO-9001. Further. Failure Mode & Effect Analysis (FMEA) .09 324. headquartered in Germany. Quality is designed into products through use of techniques like . Corporate Governance Transparency is the cornerstone of your Company’s philosophy and all requirements of Corporate Governance are adhered to both in letter and spirit. subject to your approval at the ensuing Annual General Meeting.94 810. however include all business processes of R&D. including the interim dividend paid during the year. Statistical Process Control (SPC) and Measurement System Analysis (MSA). your Company is implementing the European Foundation for Quality Management (EFQM) Business Excellence Model. 2009. Sales.00 380.

Fulfillment of such obligations is part of the Companies long term vision through engagement of all stake holders and the society at large. For the same year the Shamnagar plant has won the TQM Role Model Quality Award from CII (ER). minimize waste and preserve natural resources.” Apart from these. Your Company has taken several initiatives at each plant level in order to conserve energy. The Internal Audit team conducts both Systems and Financial Audit which are carried out in two phases at each Factory. Your Company continues to partner UNICEF in their Child Environment Programme in India that aims to create a greener and healthier world and to ensure equitable and sustainable access to basic health and hygiene facilities. The concern for Occupational Health and Safety issues has prompted your Company to implement OHSAS 18001 standard in its factories.EXIDE INDUSTRIES LIMITED companies in India to get the coveted “Significant Achievement Award. as a responsible corporate citizen it has various societal obligations. your Company has partnered with CINI ASHA for providing education and development of societal skills amongst slum and street children. in the last few years . following the methodology given by the Japanese Institute of Plant Maintenance (JIPM). distribution of free medicines and conducting pathological tests. Tata Motors and Bajaj Auto. Safety-Health-Environment. The Company also has laid down procedures and authority levels with suitable checks and balances encompassing the entire operations of the Company. is taken.2008” to your Haldia plant . Energy conservation continues to be an area of focus for your Company not only as a part of its social obligations but also since this is a major cost in the manufacturing process. as deemed necessary. health camps organized for migrant labourers and sewing machines provided to village women. Necessary information relating to steps taken for conservation of energy is given in the annexure to this report. particularly for the unreached and marginalized rural communities. development of community gardens. 15 . your Company has won several awards and accolades in Quality. the JIPM has conferred the “Award for TPM Excellence . In Haldia Sewing and Zari machines were distributed through the Cooperative System and vocational training was organized for the rural women folk. Environment and Philanthropic activities. Education. The audit findings are reviewed by the Audit Committee of Directors and corrective action. Corporate Social Responsibility Your Company believes that apart from ethical conduct of business. Environment & Safety For the Environmental Management System (EMS) the Chinchwad. For its efforts in TPM. your Company has also won awards and recognitions from Toyota. Energy Conservation. In 2009 the Hosur plant won the prestigious Asia Manufacturing Excellence Award-Gold Category in Auto Ancilliary from Frost & Sullivan as well as the ABK-AOTS 5-S Award 1st Prize in Large Manufacturing category . Shamnagar and Taloja factories are certified to ISO 14001. The new school building in the village has recently been inaugurated. Tree planting activities and other initiatives for creating awareness about the preservation of the environment were also organized. As a proof of customer satisfaction. In Kolkata. Your other plants also continued with their CSR activities which included organizing health camps. The Hosur plant has already been certified and the other factories are expected to receive the certification in due course. support was extended for educational needs for students in rural areas. your Company has identified five core areas of Health Care. This initiative has been linked to raising consumer consciousness and creating awareness for return of used batteries which contain lead and thereby inducing the vehicle owners to participate in the cause. Towards this end. As reported earlier a village near Hosur Plant has been adopted for converting it to a ‘Model Village’ and extensive work has been undertaken for infrastructure and community development for the same. Your Company is committed to preserve the environment and prevent pollution by going much beyond statutory compliance and ISO 14001 certification. Haldia. Productivity and Quality Circles. To improve efficiency and utilization of machines your Company has implemented Total Productive Maintenance (TPM) in the factories. Regional and Corporate offices. Your Company has implemented several environmental projects and receiving the Teri Corporate Environment Award in 2007 and Best Innovation Award in Leadership and Excellence in Environment-Health-Safety from CII (SR) in 2008 has further encouraged your Company to continuously improve its environmental performance. providing drinking water facilities and participation in various health awareness camps including the pulse polio programme. 5-S. Women Empowerment. Hosur. Other factories are also gearing up to the challenge to win this award in the near future. Internal Controls Your Company has proper and adequate system of internal controls. Branch. Apart from the same.

Sri Lanka. lead to depressed markets for export of your Company’s products. The Risk Management & Mitigation Systems are reviewed by the Audit Committee of Directors from time to time. telecom. Your Company’s foray into new areas such as Electric and Hybrid batteries for cars and two wheelers and in development of environmental friendly storage power alternatives would not only result in building up its strength for the present but also lead to being recognized as a major player in the new generation storage power solutions industry. Due to rise in the disposable income of all sections of the population there would be a shift towards procurement of quality and technological superior products as compared to cheaper substitutes. DC Power Systems and associated 16 . it may also result in unreasonable reduction in prices thereby creating pressure on margins. Both auto and auto ancillary Industries are expected to register double digit growth year on year basis for the next five years. augur well for your Company’s business. Unfortunately. but the growth is expected to be sluggish. Subsidiary Companies Your Company has four Indian subsidiaries viz. Several battery manufacturers are present in the Indian market and quite a few big companies have recently diversified into this industry which will lead to increased competition. Whilst on the one hand this leads to betterment of quality and service. Caldyne Automatics Limited is a 100% subsidiary of your Company having its factory at Sector V. Espex Batteries Limited. in the medium term. Further.EXIDE INDUSTRIES LIMITED Your Company has identified various business risks and has laid down the procedure for mitigation of the same. viz. Leadage Alloys India Limited and Chloride International Limited. but also has been successful in reducing costs which ultimately benefits the end consumers. power. Pune. as far as the battery industry is concerned. Asia Pte. both by public and private enterprises. Risks & Concerns Volatility in the prices of Lead. looks promising.5 Ah to 15000 Ah capacity covers a broad spectrum of applications thereby giving your Company a definite edge in the automotive. the present Anti-Dumping laws do not provide adequate protection against such imports. Chloride Metals Limited. The strong support received by the foreign technical collaborators. UK and Associated Battery Manufacturers (Ceylon) Limited. It is imperative to usher in a second Green Revolution which would necessitate increase in mechanized farming and rural electrification projects which in turn would lead to increased demand of your Company’s products. information technology and agricultural sectors. This may. Salt Lake City. and three foreign subsidiaries. not only in sharing their technology but also by continuously assisting in manufacturing and other processes. Chloride Batteries S. the huge expenditure proposed in the infrastructure sector. though signs of recovery are evident. continued to remain a constant area of concern. the dependence on imported Lead is being gradually reduced to a considerable extent. Caldyne Automatics Limited. In the international market. Singapore. The said Company achieved a turnover of Rs 264 crores representing a growth of 52% over the previous year and a profit before tax of Rs 15 crores which is 106% higher than the previous year. crashed to US $ 963 per MT and is presently around US $ 2100 per MT. Kolkata and is engaged in manufacture and sale of Chargers. Added to this. infrastructure. Chloride Metals Limited which is a 100% subsidiary of your Company is engaged in lead smelting and refining operations and has its plant at Markal. Opportunities and Threats Your Company’s strength lies in its technologically superior and high quality products coupled with a wide distribution and after sales network. also helps your Company to manufacture technologically superior products with sustainable quality. Your Company has been able to counter this threat to a considerable extent through technology upgradation.. Your Company continuously seeks to modernize and upgrade its manufacturing facilities and processes as part of its philosophy. These volatile prices not only have a major impact on the manufacturing costs but also creates uncertainty for procurement and availability. through regular supplies from the subsidiary lead smelting and refining companies. mainly for industrial batteries. the prices of Lead had peaked to US$ 2800 per MT.E. The high growth envisaged in telecom and power including setting up of nuclear power plants should lead to increased opportunities. has been a source of concern. Outlook With the growth momentum picking up and the all round sense of buoyancy the future outlook. on the other. Further the in-house R&D Department has not only been consistently developing quality products for existing as well as new applications. Ltd. which is the major constituent of your Company’s products. especially after the economic slow down in the West. Imports from China mainly for industrial batteries. The impact of this risk is however sought to be mitigated through constant monitoring and prudent business practices. The wide range of storage batteries ranging from 2. maintaining its quality and efficient after sales service. During the last two years.

Discussions are now in progress with the Union at Taloja factory regarding the Long Term (4 year) Agreement. 63. During the year 2009-10 the company achieved a turnover of GBP 40. Dr Mittal has worked in the Company for 36 years and was in overall charge of the Research. 6.37 crores. During the year 2009-10 the said company has achieved a turnover of Rs 546 crores representing an increase of over 23% over the previous year and profit before tax of Rs 54 crores representing a growth of 621% over the previous year.EXIDE INDUSTRIES LIMITED equipment. retaining and rewarding talent are well laid down and the systems are transparent to identify and reward performers. UK.. Labour Agreements were signed in all factories except Taloja which is due only in the current year 2010-11. Director .98 crores as compared to Rs 1. is engaged in marketing and selling of lead acid batteries for industrial applications.36 crores). Skill Gap Analysis is carried out on regular basis and necessary training interventions are made based on the results. The said company is engaged in manufacture and sale of lead acid batteries and caters to the South East Asian and Australian markets. Karnataka and is engaged in lead smelting and refining activities.96 crores) which was higher by 9% over the previous year and Profit before tax of SLR 151. Your Company had provided in full for a possible diminution in the value of the investment in the Accounts for the year ended 31st March.67 crores) and Profit before Tax of SGD 1.21 crores) and made a Profit Before Tax of GBP 47. 1956 along the Accounts. Development and Quality Control of the Company. The Profit Before Tax also increased from Rs 0. The statement of the Holding Company’s interest in Subsidiaries as specified in sub section (3) of section 212 of the Companies Act. your Company decided to sell its shares to the other shareholders of the Joint Venture Company. 2009. Directors Dr S K Mittal. Sri Lanka. in which your Company holds 51% of the share capital. this Company was incurring heavy losses. During the year your Company divested its 26% shareholding in Ceil Motive Power Pty. 1.01. Your Company also holds 61. The processes for attracting. Instead of investing additional amounts involving foreign exchange outflow. Ltd. Espex Batteries Limited.33 crores in the previous year.095 (Rs 30. a 51% subsidiary of your Company. The dividends received from and proposed by the Subsidiaries during 2009-10 aggregates to Rs 4.20 crores) representing a growth of 81% over the previous year.R&D will be retiring from the services of the Company with effect from 30th April. Human Resources Nurturing and development of Human Capital is of key importance and the HR policies and procedures of your Company are geared towards this objective. there has been no charge to the profit and loss account in the current year and instead a small income as consideration for the divestment was earned. 17 .73 crores). the said company achieved a turnover of Rs 37 crores and a profit before tax of Rs. Your Company holds 100% of the share capital in Chloride Batteries S E Asia Pte. During the year 2009-10 the company achieved a turnover of SGD 36.915 (Rs. Succession Planning and Talent Management continues to receive priority. 4. Hence. The sales of the said company during 2009-10 amounted to Rs 12 crores which was 224% higher than that of the previous year. and Home UPS/ Inverters etc..422 million (Rs.54 crores representing an increase of 18% and 304% respectively over the previous year. This investment was made in July 2007 with a view to expand the Company’s export market in Australia through an existing local company having manufacturing and marketing facilities. Chloride International Limited a 100% subsidiary of your Company. 0. However. Australia (as Associate Company). Your Board places on record its sincere appreciation for the services rendered by Dr Mittal during his long association with the Company. Singapore. During the year 2009-10. as a result of the economic downturn and cheap imports from China and Taiwan flooding the market. has its plant at Kolar District. Leadage Alloys India Limited. after a valuation of shares by a Chartered Accountant. is engaged in the marketing and sale of Non-conventional Energy Systems like Solar Home Lighting and Heating System Panels. 2010. Directors’ Reports’ and Auditors’ Report of the subsidiaries are attached to the Report and Accounts of your Company. As on the date of this Report your Company has 4208 employees. Several initiatives are taken both at the corporate level as also in the shop floor to inculcate team work and camaraderie.Ltd. The industrial unrest at Bawal Factory which affected production has since been resolved amicably.1 million (Rs. The said company is engaged in the business of manufacturing and marketing of Lead Acid batteries.916 million (Rs. 122.5% in Associated Battery Manufacturers (Ceylon) Limited.01 crores to Rs 0. During the year 2009-10 the said company achieved a turnover of SLR 1560 million (Rs.

Your Board has. on the responsibility of the Directors is a part of the Report. Mr. shareholders. Responsibility Statement Statement under the amended Section 217 (2AA) of the Companies Act. 1988 and forming part of the Directors’ Report for the financial year ended 31st March. the names and other particulars of employees are set out in the annexure to the Directors’ Report. Particulars of Employees In accordance with the provisions of Section 217 of the Companies Act. Directors’ Responsibility Statement In accordance with the provisions of Section 217(2AA) of the Companies Act. Auditors The Auditors. future events. The term of appointment of Mr T V Ramanathan as Managing Director & Chief Executive Officer expires on 30th April. In terms of the provisions of Section 219 (1) (b) (iv) of the Companies Act. performance or achievements could differ materially from those expressed or implied in such forward-looking statements. 2010 for health reasons. When used in this Report. The Company undertakes no obligation to publicly update or revise any forward-looking statements. 1956 a. This Report should be read in conjunction with the financial statements included herein and the notes thereto. whether as a result of new information. A resolution to this effect is being placed for your approval at the ensuing Annual General Meeting to be held on 14th July. Mr. 2010. the Directors’ Report is being sent to all the shareholders of the Company excluding such annexure.EXIDE INDUSTRIES LIMITED Mr A H Parpia. reappointed Mr T V Ramanathan. H M Kothari. “intend”. offer themselves for re-appointment. the words “anticipate”. (iii) That the Directors have taken proper and sufficient care of the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. or otherwise. the applicable accounting standards have been followed along with proper explanation relating to material departures. b. 1956. 2010 R G Kapadia Chairman 18 . as Managing Director & Chief Executive Officer for a further period of two years with effect from 1st May. Actual results. 1956. On behalf of the Board of Directors Place : Mumbai Date: 28th April. A notice has been received from a Member under Section 257 of the Companies Act. 2010. “believe”. the Board of Directors state: (i) That in the preparation of the annual accounts. Government agencies and all stakeholders. c. Conservation of Energy and Technology Absorption Information pursuant to Clause (e) of Sub-Section (1) of Section 217 of the Companies Act. 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules.. if any. Directors retire by rotation and being eligible offer themselves for re-appointment. 1956 proposing the appointment of Ms Mona N Desai as a Director at the ensuing Annual General Meeting. Your Board records its deep appreciation for the services rendered by Mr Parpia as a Director of the Company. 1956. Information pursuant to Section 217 of the Companies Act. Acknowledgement Your Directors would like to record its appreciation for the co-operation and support received from its employees. Forward-Looking Statements This Report contains forward-looking statements that involve risks and uncertainities. Any shareholder interested in obtaining a copy of the said annexure may write to the Company Secretary at the registered office of the Company. None of the Directors of your Company are disqualified for being appointed as Directors. resigned from the Board of Directors with effect from 28th April. R G Kapadia. who was a Director of your Company since 1993. 1956. S B Raheja and Mr. are attached hereto. 1956 and the rules framed thereunder. and (iv) That the Directors have prepared the annual accounts on a going concern basis. “estimate”. “will” and other similar expressions as they relate to the Company and/or its businesses are intended to identify such forward-looking statements. M/s S R Batliboi & Co. 2009. At its meeting held on 28th April. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates. (ii) That the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the company for that period. your Board appointed Ms Mona N Desai as an Additional Director to hold Office till the ensuing Annual General Meeting of the Company. 2010. subject to your approval. “expect”. Chartered Accountants retire at the conclusion of the ensuing Annual General Meeting and being eligible under Section 224(1B) of the Companies Act. as specified in Section 274(1)(g) of the Companies Act. 2010. 1956.

120 & 28 watts) lighting system provided in place of HPSV (400. viz.39 Lac Units / Rs.68 lacs per annum. Installed 9 nos.3 Lac Units / Rs.70 lacs per annum. resulting in savings of 1. variable frequency drives for exhaust fans for dust collectors and scrubbers. 1956. Solar. 1988 and forming part of the Directors’ Report for the year ended 31st March. 2.75 Lacs per annum. 8. 4.15 Lacs per annum. 2. Optimization of Process pumps 12No’s of 7. 210 & 40 watts) in Motorcycle Assembly plant and SLI Plant resulting savings of 38585 KWH per annum and cost savings of Rs 2. Conservation of Energy The Company accords great importance to conservation of energy. e.97. 6. switching off all MCA AHU’s during lunch break and tea break resulting in savings of 56654 KWH per annum and cost savings of Rs 3. process modification and also by equipment modification/replacement/retrofitting.7. Diesel and water. Optimisation of cooling air requirement in overall plant by modifying the AHU’s in the plant resulting in savings of 118404 KWH per annum and cost savings of Rs 7. 7. 5 hp ETP equalisation tank pump being replaced by 2HP maintenance free seal less pump after the energy measurement resulting in savings of 1400 KWH per annum and Rs 0. LPG.4 Lacs per annum.2.5HP to 12No’s of 3HP resulting in savings of 1. Usage of renewable energy. Chinchwad Plant 1. 5. Fans.09 lacs per annum. 3. 6.45 Lac Units / Rs. 5.51 lacs per annum. The main focus of the Company during the year was : a. Hosur Plant 1. Optimisation of JF Cooling water requirement by providing the required capacity cooling tower and pump resulting in savings of 84343 KWH per annum and cost savings of Rs 5. Optimum use of Energy by Switching off Machines.48 Lacs per annum.82 lacs per annum. Lights. c.48 lacs per annum. Achieving power factor standards nearing unity. VFD installation in Grid casting/pasting fume extraction system resulting in savings of 58752 KWH per annum and cost savings of Rs 3. 9. LPG. Energy savings by providing Timers. 4. 3.2. 100% use of Recycled water for Gardening and Shop Floor Washing. Improved Power Quality and Power factor from 0. read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules. I. 7. 3. Air Conditioners and Exhaust Systems whenever not required. Conversion of Tube light fitting (2*40W to 2*28W) resulting in savings of 0. Optimization of Genset Cooling towers 3No’s of 150Tr to 2No’s of 150Tr.22 Lac Units / Rs. 2.5. 4.57 lacs per annum. Optimum Utilization of Chillers 3No’s of 13Tr to 1No of 24Tr. Bawal Plant 1. diesel and water by reducing process cycle time. d. Optimisation of cooling air requirement in AHU 2 & 3 by damper as per the requirement in summer and winter resulting in savings of 23731 KWH per annum and cost savings of Rs 1. 2010.EXIDE INDUSTRIES LIMITED ANNEXURE TO DIRECTORS’ REPORT Information as per Section 217(1)(e) of the Companies Act.04 Lacs per annum.980 to 0. Close monitoring of consumption of electricity. Reduction of air pressure requirement by providing the close loop system in the air distribution line in MCA resulting in savings of 269156 KWH per annum and Rs 17. VFD installation in seven Grid Casting Machines resulting in savings of 8813 KWH per annum and cost savings of Rs 0. Optimisation of cooling air requirement in AHU 4 & 11 by damper as per requirement in summer and winter resulting in savings of 24270 KWH per annum and cost savings of Rs 1. Reduction in Compressed Air Consumption by arresting Air Leakages. Energy efficient T – 5 (216.990 resulting in saving of 8.50 lacs per annum. Optimisation of electricity. 5. b. 10.54 lacs per annum. Use of Non Conventional Energy (Wind Power) of 612757 KWH. 19 . Power Factor Maintained at 0.53 lacs per annum. Creating awareness among Workmen to conserve energy.25 Lac Units –Rs. Close monitoring of electricity consumption based on ‘KWH/MT of Lead Consumed’. All of the Company’s plants targeted unity. resulting in savings of 0.

90 KWH and cost savings of Rs. Installation of 1 no.03 Lac units / Rs.6. Installation of electronic timers in Plate drying ovens (PDO) at Automotive plant which reduces the cycle time (previously.50 lacs. Maintained the Plant Load Factor to 75 % & above (average L. to reduce the consumption of acid in mixing process by 4. Optimization of compressed air: Saving of Rs.28 Crores.90 lakhs. Annual Savings: Rs. Installation of VFD in dust Extraction system resulting in savings of 2.: Saving of Rs. 45 Lacs. 5. but now it has come down to 14 hrs. Installation of energy saver tube lights (28 W) instead of conventional tube lights (40W). Optimum utilisation of motors in the Various Departments / Machines: Saving of 41400 KWH per annum (Approximately Rs. 105 KVA Lighting energy saver panel for lighting at Automotive plant.2 Lac) 2. Substantial reduction of Energy in day time resulting in savings of 0.84 Lacs per annum. 8. Annual savings: Rs. 5.5.05 Lac units / Rs. 76. Reuse of treated sewerage water in gardening. 11. Common mould cooling system for Spine casting M/cs in Industrial factory. road and floor washing. 2. Use of solar light for street lighting near main gate.27 Lacs per annum.35 Lacs. Installation of Screw compressors in place of reciprocating compressors resulting in savings of 3.00 lacs. Annual Savings: Rs.90 Lac Units / Rs.90 Lac) 5. 7. Taloja Plant 1. 17. 1.F. 20 Lacs. 1. Optimization of Lead lump cutting resulting in Savings of 0. 5.EXIDE INDUSTRIES LIMITED 6.4 Lacs. x 670 KVAR capacity APFC panels with Capacitor banks and D.10 Lacs. Annual Savings: Rs. already used in Forming. 8. 30 Lacs. Achieved Power Factor Unity consistently throughout the year: Saving Rs 16. 6. cycle time was 20 hrs. Annual Savings: Rs. Optimization of Compressed air resulting in Savings of 1. 3 Lac 7.11 Lac per annum. Installation of additional Capacitor bank resulting in savings of Rs. 10. 2. Installation of Energy less Roof Ventilators 10 Nos. Use of natural light by using transparent sheets for roof and sides: Saving of Rs. 3. Savings: Rs. 7. 9. Use of Z conveyor in the Casting Section to eliminate bottom Electrical Heating Pot: Saving of 103200 KWH per annum (Approximately Rs.97 Lac Units / Rs. Replacement of CFL 65 W in Place of HPMV Lamps 250 W: Saving of 15980 KWH per annum (Approximately Rs. Usage of Natural Draft resulting in savings of 1. 13. Installation of translucent sheet in Automotive Despatch.0 bars. 2 Lac Shamnagar Plant 1.2. Annual Savings: Rs.70 KWH and cost savings of Rs.06 Lac per annum. Solar water heating system introduced at canteen for preparing hot water.3 Lacs. Installation of air turbine ventilators at Traction plant for improving ventilation as well as working environment. 20 .48 Lac Units / Rs. Jar Formation areas to reduce lighting load at day time.0.5 %) by controlling MD. 4. 1.60KWH and cost savings of Rs. 12. 2 Lac 6.20 lacs. 0.35 Lacs. Conversion of 4No’s Individual Pot to Common pot .8.84 lacs. Installation of water flow meter to monitor the consumption of water inside the factory.4 Lac 4. 3.98 by installation of additional 2 nos.4 Lacs.Savings of 1. 12.tuned harmonic filters. 2. Conversion of Electric fired Ovens to LPG fired Ovens – Savings of 2.4 Lac) 3. Recycling or reuse of acid.11. 4. Annual Savings: Rs. 14.5 M3 per day which in turn reduces effluent and generation of sludge. Annual savings: Rs.60 Lac per annum. 0. 1. Day light Improved by using Ultraviolet transparent sheet (Green Energy) resulting in savings of– 0. Maintained Power Factor at 0.43 KWH and cost savings of Rs 1. Installation of Air Booster for oxide filling area to maintain constant air pressure of 6.) as per requirement of Technical dept. 15. 10. Annual Savings: Rs. 9. Haldia Plant 1.

5 Lacs. Installation of VFD in 75 HP Air Compressors. Adaptation and Innovation a) Continuous improvement in the Product Design & Technology.55 Crores. Long Life VRLA batteries for UPS & Telecom applications. II. Annual Savings: Rs. Significant benefits have been derived by way of enhanced market penetration by meeting the specific requirements of International and Domestic Vehicle Manufacturers. The on-going Research Projects will continue to focus on enhanced re-chargeability and deep cycling capability in the new range of batteries for a variety of applications. 8. materials & processes and enhancement of battery’s shelf life. 1. Particulars as per Form B A1. A4. Research & Development (R&D) Specific areas in which R&D is carried out by the Company Research & Development activities are aimed at advancement of designs & technology to provide a cutting edge. Technology Absorption.73 Crores and Rs. Automotive. new innovations and adaptations are taking place in the area of ISS batteries for micro-hybrid vehicles and batteries for industrial applications. new battery for Volkswagen’s Polo car. 16. Significant achievements would include: Development of battery for Toyota’s Fortuna MCV. Value Engineered Product for Maruti Suzuki’s ALTO. Deep Cycling VRLA Batteries for Electric-Bikes & Scooter applications. 17. Electric Bikes.9 Lacs. there is a special focus on improving the Product consistency. b) New innovations to enhance the life of E-bike batteries under the Indian conditions as well as the improvement in Production & Process Technology with the assistance from Technical Collaborators. Motor Cycle. the development of new products to suit the emerging market requirements in different segments. VRLA motor cycle battery. new products for General Motors India. The R&D activities also include Production Tools for the new Products. Industrial Jar Formation areas etc. Benefits derived as a result of the above R&D R&D activities have helped the Company to provide Technology leadership in select areas.1. 21 . Total R & D Expenditure as percentage of Net Turnover: 0. Annual Savings: Rs. 11. Replacement Markets and certain Exports markets. Replacement of V-belt by Flat belt to reduce transmission loss in continuous operation area. mild hybrid and electric vehicles. Expenditure on R & D The capital and revenue expenditure on R & D were Rs. Railways. Exide Electrica for E-bikes and VRLA motor cycle for Hero-Honda and HMSIL. In view of the emerging needs for the Advanced Lead-Acid batteries for a variety of applications. A2. viz. 2. Benefits R&D innovations and new products have helped the Company to meet the emerging market needs for Advanced Technology Products and maintain its Technological leadership in the country.EXIDE INDUSTRIES LIMITED 15. A3. aggregating to Rs. In addition. Future Action Plan The major R&D focus will continue to be on the development of state-of-the-art ISS batteries for Idling Stop-Start vehicles (micro-hybrids).30% B1. B2. UPS. High Energy Density Lead Acid batteries for Electric Vehicles and a low cost MF range for the rural markets. 5. Motive Power. Automotive Jar Formation. Annual savings: Rs.82 Crores respectively. New Products introduced would also include Long Life batteries for Inverter and Solar applications. Recycle & re-use of RO reject water in Alloy Blending. the focus on Technology Absorption & Innovation will continue.0 Lacs. New Research Projects are being initiated to enhance the life of the E-bike batteries under the Indian conditions. Several Advanced Technology Projects are in progress which include ISS batteries for Idling Stop-Start vehicles (micro-hybrid vehicles). Telecom and Submarine.

If not fully absorbed. 2007. Dubai and Nigeria and have also supplied to the Telecom market of Nigeria for the first time. Total Foreign Exchange used and earned: Used : Rs. Not Applicable. The Agreement also provides support for future product improvements. Year of Import Since 1994-95. 2010 Chairman 22 .. Automotive batteries for Idling Stop System with Furukawa Battery Co Ltd. 2010. Not Applicable. initiatives taken to increase exports. Being absorbed. Being absorbed. 1st February 2010. Agreement is for Technical Assistance for continuous improvements in manufacturing technology of different products and is in progress. III. Foreign Exchange – Earnings and Outgo 1. 2015. Particulars of Imported Technology in the last 5 years Technology Imported Automotive and VRLA Lead Acid Storage Batteries with Shin-Kobe Electric Machinery Co Ltd. 15th June. Japan. In the Industrial Battery segment. During the year. valid upto 31st January. Successful inroads were made in Finland and Norway in Europe and Mozambique and Tanzania in Africa for the first time.. In Progress. VRLA Lead Acid Storage Batteries for Motorcycles with Furukawa Battery Co Ltd. Deep Cycling E-bike batteries for Electric Bicycles & Scooters with Changxing Noble Power Sourcing Co. Since 1997-98. Japan. 2012. Current arrangement is effective 1st April.. 2015.02 crores Earned : Rs. Since the technology is continuously evolving. reasons and future action plan Since the technology is continuously evolving. 2010 and is valid upto 31st March.74 crores On behalf of the Board of Directors Place : Mumbai R G Kapadia Date : 28th April. 2010. valid upto 14th June. Current arrangement is effective 1st December. 2008.. Japan. development of new export markets for products and services and export plans: Your Company continued with its initiatives for developing the export market for both Automotive and Industrial batteries. 565. The Agreement also provides support for future product improvements. Japan. Activities relating to exports.. Still under development. Exide brand automotive batteries were supplied to Mauritius.2005 and is valid upto 30th November. the Agreement will be ongoing. We have also entered into the solar markets of Australia. Has Technology been absorbed Agreement is for Technical Assistance for continuous improvements in manufacturing technology of different products and is in progress. valid upto 8th March. successful in roads were made in France. 9th March. Also.EXIDE INDUSTRIES LIMITED B3. Lead Acid Storage Batteries for Automotive applications with Furukawa Battery Co Ltd. Ltd. Norway and Finland in Europe with Traction batteries. MF batteries with Ca-Ca Alloy was launched into markets of Armenia & Uzbekistan. China. the Agreement will be ongoing. 2. the Company received the prestigious approval from one of the Globally Leading OEM of Motive Power Segment and are continuing to supply Traction batteries to them. 108.

8 10.9 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Years Years 23 .9 11.2 41. Crores SALES TREND 950 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 OPERATING PROFIT TREND 2600 2400 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 0 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Years 0 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Years RETURN ON CAPITAL EMPLOYED 45 WORKING CAPITAL TO NET SALES 40 35.6 30 Percentage 25 20 15 10 12.4 15 10 12. Crores Rs.6 30 25 20 28.5 8.5 8.7 7.4 20.4 21.3 16.5 15.0 5 28.9 40 35 Percentage 35 34.5 32.1 19.EXIDE INDUSTRIES LIMITED FINANCIAL TRENDS 4600 4400 4200 4000 3800 3600 3400 3200 3000 2800 Rs.5 23.8 18.

42 1.30 800 Rs.35 0. Crores) 685 607 1335 302 3 2932 1335 607 685 24 .6 0.68 0. Crores) 90 554 39 59 2190 2932 3 302 APPLICATION OF FUNDS Fixed Assets Inventories Investments Customers and Others Cash & Bank Balances (Rs.26 0.6 1100 1000 1.4 1.EXIDE INDUSTRIES LIMITED 1200 CONTRIBUTION TO THE EXCHEQUER DEBT-EQUITY RATIO 1.4 0.2 900 1.95 Ratio 0.59 0.8 0.0 0.2 1.04 300 200 100 0 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Years 0 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Years 90 SOURCES OF FUNDS 554 2190 39 59 Money borrowed from Banks and Others Payable for Goods supplied & services rendered Proposed Dividend Deferred Tax Liability Shareholders’ Funds (Rs. Crores 700 600 500 400 0.52 0.57 0.

EXIDE INDUSTRIES LIMITED 2200 2150 2100 2050 2000 1950 1900 1850 1800 1750 1700 1650 SHAREHOLDERS’ FUNDS 1550 1500 1450 1400 1350 1300 1250 1200 1150 1100 1050 1000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 1600 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Years 230 222 214 206 198 192 184 176 168 160 152 144 136 128 120 112 104 96 88 80 72 64 56 48 40 32 24 16 8 0 EMPLOYEE REMUNERATION & BENEFITS Rs.69 95 3. Crores Rs.07 # 31 13.23 # 32 14.55 56 3.43 # 26 10.30 # 21 10.70 16 8. Crores 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Years THE DECADE IN RETROSPECT 2009-10 Sales (Gross) Operating Profit Gross Profit Taxation Net Profit Cash Profit Annualised Earning per Share (Rs.79 13 11.) Dividend Balance Sheet Net Fixed Assets** Investments Current Assets Total Assets Loans Current Liabilities Sub Total Deferred Tax Liability Net Worth** Total Liabilities 685 1335 912 2932 90 593 683 59 2190 2932 653 668 742 2063 317 487 804 41 1218 2063 565 518 877 1960 350 572 922 48 990 1960 455 378 572 1405 325 407 732 45 628 1405 408 279 440 1127 290 282 572 51 504 1127 428 112 458 998 290 220 510 59 429 998 416 20 366 802 199 210 409 58 335 802 415 19 349 783 282 143 425 62 296 783 423 19 353 795 343 127 470 62 263 795 445 20 372 837 432 101 533 – 304 837 4542 902 892 274 537 618 2008-09 4233 551 503 151 284 352 2007-08 3606 476 439 124 250 315 2006-07 2383 317 289 80 155 209 2005-06 1761 229 207 51 101 156 2004-05 1483 182 168 37 77 131 2003-04 1220 182 165 37 73 127 2002-03 1095 162 127 29 52 98 (Rupees Crores) 2001-02 2000-01 985 132 86 11 31 75 954 141 92 7 42 85 6.06 14 * * Excluding dividend on Preference Shares ** Net of Revaluation Reserve # Post Bonus Issue + Post Sub-division of shares 25 .30 37 +2.

650 48.000 15.500 9.88.152 71.46 8.10.00.66 24.944 40.56.000 5.18 1.68 35.950 77.36.209 67.48.79. 26 .338 37. in Crores) 1.00 35.00 Public Issue Bonus Issue Bonus Issue Bonus Issue Bonus Issue Bonus Issue Rights Issue Bonus Issue Bonus Issue Bonus Issue Rights Issue Conversion of Equity Warrants Rights Issue Buy Back Buy Back Bonus Issue Preferential Issue Sub-division Rights Issue Qualified Institutions Placement Issue Dividend: The Board has recommended a final dividend of Re 0.454 3.00 80.80.00.30.38.000 2.60 per share (60%) paid on 5th November.00.61 71.04.22 75.77 2.42 1. 2010 the total dividend for the year works out to Re 1.54.45.00 per share (100%) [previous year 60%]. Rs Rs Re Re Re 10 10 10 10 10 1 1 1 PARTICULARS CUMULATIVE SHARE CAPITAL (Rs.00.12 4.100 16.000 3.00 75.67.00.000 5.79 28.EXIDE INDUSTRIES LIMITED SUBSIDIARIES/ASSOCIATES EQUITY HISTORY YEAR NUMBER 1960 1965 1967 1968 1974 1977 1978 1980 1983 1987 1996 1997 1998 2001-02 2002-03 2003-04 2004-05 2006-07 2007-08 2009-10 11.000 3.23.91 20.000 18.40.13.07 12.52 6.83 36.01 5.00.40 per share (40%) subject to approval of the shareholders at the ensuing Annual General Meeting.324 75.000 EQUITY SHARES FACE VALUE PER SHARE Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs 10 Rs Rs Rs. Together with interim dividend of Re 0.520 41.00 85.723 3.54.

strategic management being free from the task of day-to-day executive management. thereby casting the responsibility on the Board of Directors to protect and enhance shareholder value. Transparency requires that the Company makes appropriate disclosures where necessary and explains the basis of its policies and actions to all those who are affected by them. This freedom of management. The core roles. Trusteeship recognises that large corporations have both an economic and a social purpose. Strategic supervision . transparency. being free from the collective strategic responsibilities for Exide as a whole. Executive management . The structure also ensures that executive management of the divisions.by the Executive Committee iii. and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management are used with care and responsibility and not misused. In order to discharge such responsibilities. each entity is empowered formally with requisite powers. as well as fulfil obligations to other stakeholders.by the Board of Directors ii. empowerment and accountability. Exide believes that the practice of each of these tenets would lead to the creation of the right corporate culture in which the Company is managed in a manner that fulfils the purpose of Corporate Governance.EXIDE INDUSTRIES LIMITED REPORT ON CORPORATE GOVERNANCE Governance Philosophy Exide views Corporate Governance as a systemic process by which companies are directed and controlled to maximise their capacity to generate wealth. is focused on enhancing the quality. determine the core responsibilities of each entity. Empowerment is a process used to unleash creativity and innovation throughout the organisation by decentralising and delegating the decision making powers at the most appropriate levels. THE GOVERNANCE STRUCTURE The practice of Corporate Governance in Exide is at three interlinked levels: i. Exide’s Corporate Governance initiative is based on two core principles: i. Exide’s governance philosophy embraces the tenets of trusteeship. 27 . The core roles of the key entities flow from the structure. processes and practice of governance enables focus on the Corporate purpose while simultaneously facilitating effective management of the diverse businesses within the portfolio. Control ensures that freedom of management is exercised within a framework of checks and balances and is designed to prevent misuse of power. in turn. As large corporates use vast quantum of societal resources. Exide’s Corporate Governance processes continuously reinforce and help actualise the Company’s belief in ethical corporate citizenship and is manifest through exemplary standards of ethical behaviour. remains focussed and energised. facilitate timely response to change and ensure effective management of risks. all statutory and other significant and material information are placed before the Board to enable it to discharge its responsibilities of strategic supervision of the Company and as trustees of stakeholders. BOARD OF DIRECTORS In terms of the Company’s Corporate Governance Policy. Exide believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company. efficiency and effectiveness of each business. and ii. however. Management must have the executive freedom to drive the organization forward without undue restraints. should be exercised within a framework of effective accountability and transparency. Exide believes that the governance process should ensure that these companies are managed in a manner that meets both stakeholders’ aspirations and societal expectations. can be conducted by the Board with objectivity thereby sharpening accountability of the management. The structure. Further. Strategic management . control and ethical corporate citizenship. both within the organisation as well as in external relationships.by the Divisional Head of the business This three-tier structure ensures that strategic supervision on behalf of the shareholders being free from the task of strategic management.

Executive Director resigned on the date of this Report and the Board appointed another Non-Executive Director on the same day. 78666 and 45839 equity shares respectively in the Company. 2009. A Notice has been received from a Member under Section 257 of the Companies Act.EXIDE INDUSTRIES LIMITED Composition The Board of Directors of the Company consists of five Executive Directors and nine Non-Executive Directors including a Non-Executive Chairman. 16 July. 2010. 1956 and memberships of Managing Committees of various Chambers/bodies and Alternate Directorships. five Board meetings were held on 27 April. Ms Mona N Desai and Mr T V Ramanathan hold 214491. law and corporate management. Name of Director Category of Directors No of other Directorships held (*) 8 7 3 3 1 3 2 4 3 Nil 5 3 4 Nil 13 Nil Committee Memberships held in other companies (**) as Member Mr R G Kapadia Mr R B Raheja Mr T V Ramanathan Mr G Chatterjee Dr S K Mittal Mr P K Kataky Mr A K Mukherjee Mr H M Kothari Mr Bhaskar Mitter Mr S N Mookherjee Mr Vijay Aggarwal Mr S B Raheja Mr A H Parpia # Ms Mona N Desai Mr D S Parekh (Alternate to Mr S B Raheja) Mr W Wong Independent NonExecutive Chairman Non-Executive Vice Chairman Executive Director Executive Director Executive Director Executive Director Executive Director Independent NonExecutive Director Independent NonExecutive Director Independent NonExecutive Director Independent NonExecutive Director Non-Executive Director Independent NonExecutive Director Independent NonExecutive Director Independent NonExecutive Director Non-Executive Director 3 4 Nil Nil Nil Nil Nil Nil 4 Nil 2 1 Nil Nil 2 Nil as Chairman 4 Nil Nil Nil Nil Nil Nil Nil 1 Nil 1 Nil Nil Nil 5 Nil have offered themselves for reappointment at the ensuing Annual General Meeting : i) Mr R G Kapadia ii) Mr S B Raheja iii) Mr H M Kothari Mr T V Ramanathan has been reappointed as Managing Director & CEO for a period of two years with effect from 1st May 2010. 2009. 2010 respectively. 2009 and 11 January. Companies u/s 25 of the Companies Act. 2009. Mr R G Kapadia and Mr S B Raheja do not hold any equity shares in the Company. The Non-Executive Directors are eminent professionals with experience in business. 1956 proposing the appointment of Ms Mona N Desai as a Director at the ensuing Annual General Meeting. Code of Conduct for Directors & senior management The Board had approved of the Code of Conduct as applicable to the Directors and the members of the Senior Management on 21st October. 18 November. 1956 and being eligible. Meetings and Attendance During the financial year ended 31 March. 12 October. # Mr A H Parpia has resigned from the Board with effect from 28th April. A brief Resume of the above named Directors along with the particulars of Directorships held by them has been appended to the Notice for the Annual General Meeting which is being circulated to the members alongwith this Report. All Directors and members of the Senior Management have adhered to the Code of Conduct of the Company during the 28 . 2010. 2009. There is also one Alternate Director who is a Non-Executive Director. The previous Annual General Meeting was held on 17th July. finance. Directors attendance at Board Meetings and at Annual General Meeting (AGM): Name of Director No of Board Meetings Attendance at Attended last AGM Mr R G Kapadia 3 Yes Mr R B Raheja 2 – Mr T V Ramanathan 5 Yes Mr G Chatterjee 5 Yes Dr S K Mittal 5 Yes Mr P K Kataky 5 Yes Mr A K Mukherjee 5 Yes Mr H M Kothari 1 – Mr Bhaskar Mitter 3 – Mr S N Mookherjee Nil – Mr S B Raheja Nil – Mr Vijay Aggarwal 3 Yes Mr A H Parpia 2 – Mr D S Parekh 2 – (Alternate to Mr S B Raheja) Mr W Wong Nil – * Excludes Directorships in Indian Private Limited Companies. Appointment/Re-appointment of Directors Ms Mona N Desai has been appointed as an Additional Director of the Company on 28th April. One Non. Ms Mona N Desai was appointed as an Additional Director on 28th April. subject to the approval of the Members in General Meeting. Foreign Companies. 2010. Mr H M Kothari. The following Directors retire by rotation in accordance with the provisions of the Companies Act. 2005. ** Committees include only Audit Committee and Shareholders’ Grievances Committee. Mr R B Raheja and Mr S B Raheja are related to each other. 2010.

is an independent Non-Executive Director and a Chartered Accountant acknowledged as a financial expert in his own right. The details of remuneration paid to executive directors for the year ended 31st March. in crores) 0.491 The representatives of the Statutory Auditors attended two out of four Audit Committee Meetings held during the year. Mr R G Kapadia. 2010 2. non-receipt of 29 .Finance & CFO and Chief. a Non Executive Independent Director is the Chairman of the Shareholders’ Grievance Redressal Committee.72 0. in crores) 0. 2009 and 11 January.EXIDE INDUSTRIES LIMITED year and have signed declarations of compliance with the same. in crores) 0. Meeting of this Committee are held as and when required.13 0.94 0.32 0. Director . of shares held as on 31st March.805 2.57 Mr T V Ramanathan Mr G Chatterjee Dr S K Mittal Mr P K Kataky Mr A K Mukherjee Shareholding of Non Executive Directors Name of Director Mr A H Parpia Mr Bhaskar Mitter Mr D S Parekh Mr H M Kothari No. REMUNERATION COMMITTEE The Remuneration Committee of Directors recommends to the Board the compensation terms of Executive Directors and Executive Committee members.16 0. Remuneration of Non-Executive Directors The Non-Executive Directors do not receive any remuneration from the Company.29 Contri butions to retiral funds (Rs.23 0.64 0. Name of Director Mr R G Kapadia Mr Bhaskar Mitter Mr Vijay Aggarwal Mr S N Mookherjee Number of meetings attended 4 1 4 Nil B. Mr Bhaskar Mitter. The names of the other members of the Committee are provided elsewhere in the Report and Accounts. Mr Bhaskar Mitter.13 0. apart from the sitting fees. The Code of Conduct has also been posted on the website of the Company. Company Secretary and Vice President . 2010. inter alia. Chairman of the Committee.14.36 0.Legal & Administration is the Secretary of the Committee.47 0. Chairman of the Committee is an Independent Non-Executive Director. in crores) 0. 2009.16 0.933 30. COMMITTEES OF THE BOARD A.18 0. four meetings of the Audit Committee were held on 27 April. in crores) 1.Internal Auditor are permanent invitees to the audit committee meetings. 1956.22.14 Total (Rs. The names of the other members of the Committee are provided elsewhere in this Report and Accounts. provides assurance to the Board on the adequacy of the internal control systems. 2010 are given herein below : Name of Director Salary & Performance Bonus (Rs. financial disclosures and ensures that generally accepted accounting principles are observed by the Company. The terms of reference of the Audit Committee are in conformity with the requirements of Clause 49 of the Listing Agreement read in conjunction with Section 292A of the Companies Act. C. Composition The Audit Committee presently comprises of four independent Non-Executive Directors who are well versed in corporate finance and related areas. 2010 respectively. 16 July.41 1. 2009.07 Perquisites & Other benefits (Rs.000 22. Remuneration of Executive Directors All the Executive Directors of the Company have been appointed on a contractual basis based on the approval of the shareholders for periods ranging from 3 to 4 years. AUDIT COMMITTEE The Audit Committee of the Company.09 0. Attendance During the financial year ended 31 March. The names of the other members of the Audit Committee are provided elsewhere in the Report and Accounts. The Committee looks into redressal of investor complaints relating to transfer of shares.17 0.77 1.39 0.36 0. It also provides guidance and liaise with the Internal Auditors as well as the Statutory Auditors of the Company. SHAREHOLDERS’ GRIEVANCE REDRESSAL COMMITTEE The Shareholders’ Grievance Redressal Committee comprises of three Directors. The Annual Report of the Company contains a declaration to this effect from the Managing Director & CEO.72 0.07 Commission (Rs. Mr S Coomer. The Managing Director & CEO. 12 October.21 1.

2009. 16 April. 14 August. as reconstituted on 12 October. 2009. 2010 eight meetings of the Executive Committee were held on 6 May. 2009. EXECUTIVE COMMITTEE The Executive Committee comprises of the Executive Directors and Key Management Personnel and the Committee focuses on the strategic management issues of the Company. Mr S Coomer. The Committee approves the transfer/transmission of shares. 13 October. 4 November. 2009. 26 October.2007 Venue Date Time 10. 17 June.700 017 Do Do 25. 2009 3 15 Nil Nil E. 2009. Attendance During the financial year 2009-2010. Name of Director Mr Bhaskar Mitter Mr T V Ramanathan Mr G Chatterjee Number of meetings attended Nil 1 1 Mr P K Kataky** Mr A K Mukherjee Mr Bhaskar Mitter* Mr S N Mookherjee* * Member upto 12 October. 2009.07. Attendance During the financial year ended 31 March. the Committee comprised of three Executive Directors and three Non-Executive Directors. 2010. etc. Company Secretary and Vice President . The names of the members of the Share Transfer Committee are provided elsewhere in the Report and Accounts. 2009. The Committee comprises of four Executive Directors. 2010 respectively. received and resolved during the year and pending share transfers as on 31st March. presently comprises of four Executive Directors.07. 2009. The name of the members of the Banking Operations Committee are provided elsewhere in the Report and Accounts. Previously. 2009.2007 48 Shakespeare Sarani Kolkata . 2009 13 November.2008 31.Legal & Administration acts as the Secretary to the Committee and assigned with the responsibility of overseeing investor grievance. 14 December. SHARE TRANSFER COMMITTEE The Share Transfer Committee.03.2009 61st 62nd 31. 2010 and 8 March. 2009.03. change in bank signatories and other routine banking operations. 15 July. BANKING OPERATIONS COMMITTEE The Banking Operations Committee has been constituted to approve opening and closing of bank accounts. 26 October. 2009. etc. non-receipt of annual reports. 2010 respectively: Name of Director Mr T V Ramanathan Mr G Chatterjee Mr P K Kataky Mr A K Mukherjee Number of meetings attended 3 2 2 3 Details of complaints at the beginning of the year. subject to the overall supervision of the Board of Directors. 2009. 2009. 2009. Name of Director Mr T V Ramanathan Mr G Chatterjee Dr S K Mittal Mr P K Kataky Mr A K Mukherjee Mr S Coomer Mr Nadeem Kazim Number of meetings attended 8 7 8 8 8 8 8 GENERAL BODY MEETINGS Particulars of last three Annual General Meetings: AGM Year Ended 60th 31.03. Attendance During the financial year ended 31 March. 2009.30 AM 30 . 11 January. 2010. 2009 and 22 January. 2009. a meeting of the Shareholders’ Grievance Redressal Committee was held on 14 September. 2009.2009 10. three meetings of the Committee were held on 15 June. fifteen meetings of the Share Transfer Committee were held on 1 April. 2009.07. 2010. 4 May. 2009.2008 17. 15 July. 2009 ** Member since 12 October. 2009 and 26 March.30 AM 10. 14 August. 26 June. 2010.30 AM Kalamandir 20. 5 December. respectively: Name of Director Mr R G Kapadia* Mr T V Ramanathan Mr G Chatterjee Number of meetings attended Nil 15 11 F. 11 February.EXIDE INDUSTRIES LIMITED dividend. 14 September. 19 May. sub-division or consolidation of shares and issue of new/duplicate share certificates. During the financial year ended 31 March. 9 September. 2010: Number of complaints at the beginning of the year Number of complaints received Number of complaints redressed Number of complaints not resolved Number of pending share transfers 1 28 29 Nil 7 D. 2009.

the 14th day of July. The name of other companies in which the retiring directors holds directorship and the membership of Committees of the Board in other Companies are also given in the annexure to the Notice convening the 63rd Annual General Meeting. 2011 April. 2001. The 63rd Annual General Meeting is proposed to be held on Wednesday. Whether MD & A is a part of Annual Report : Yes D. Kolkata – 700 017. 1956 by Postal Ballot in terms of Section 192A(2) of the Act read with Companies (Passing of the Resolution by Postal Ballot) Rules. 2011 July.96 0. The Results of the Postal Ballot was announced by the Managing Director of the Company on 2nd January. Thereafter. Statutory Auditors 25 July 2008 Reappointment of Messrs S R Batliboi & Co. 2010. b.Statutory Auditors 17 July 2009 None Triggering Section of the Companies Act. FCS. 2010 October. relating to re-appointment of retiring directors and proposed appointment of a new Director. DISCLOSURES a. Tentative Financial Calendar for 2010-11 First Quarterly Results Second Quarterly/Half Yearly Results Third Quarterly Results Annual Results for the year ending on 31st March. Shareholders may kindly refer to the Notice convening the 63rd Annual General Meeting of the Company.com is regularly updated with the financial results.30 a. Details of non-compliance by the Company. at ‘Kala Mandir’. Company Secretaries was appointed Scrutinizer for conducting the Postal Ballot. Shakespeare Sarani.exideindustries. MEANS OF COMMUNICATION A. 1956 Section 224A c. of Ballot Papers No.EXIDE INDUSTRIES LIMITED SPECIAL RESOLUTION The details of the special resolutions passed by the Company at the last three Annual General Meetings (AGM) are given herein below: Date of AGM Subject matter of the resolution 20 July 2007 Reappointment of Messrs S R Batliboi & Co. 3. The Voting pattern is as under Number of Postal Ballot Forms Received Valid Invalid 1526 1421 105 No. All Mandatory requirements have been appropriately complied with and the nonmandatory requirements are dealt with at the end of the Report. 1. 2010 January. penalties imposed on the Company by the Stock Exchanges or SEBI or any statutory authority on any matter related to capital markets during the last three years. the system for EDIFAR filing has been abolished by SEBI. as required by Clause 49(IV)(G) of the Listing Agreement of the Stock Exchanges. Financial Year : 1st April to 31st March.. Disclosures on materially significant related party transactions Details of transactions of a material nature with any of the related parties as specified in Accounting Standard 18 issued by the Institute of Chartered Accountants of India have been reported in the Notes to the Accounts. 2011 July.m. 2009. The Company’s website at www. The Company has furnished information. 2011 Annual General Meeting for the year ending on 31st March. 2011 Section 224A Not Applicable POSTAL BALLOT Approval for Issue of Securities through Qualified Institutions Placement was sought from the Shareholders of the Company by Special Resolution pursuant to Section 81(1A) of the Companies Act. EDIFAR Filing as required by SEBI : Information has been regularly filed from time to time till the financial results for the quarter ended 31st December. There was no such instance of non-compliance during the last three years. 2.04 100 Mr S M Gupta. GENERAL SHAREHOLDER INFORMATION 1. There is no transaction of a material nature with any of the related parties which is in conflict with the interests of the Company. Quarterly results and Audited Financial Results are generally published in following Newspapers: The Economic Times The Telegraph Ananda Bazar Patrika (Bengali) The Hindu Business Line B. 2.. of Votes Percentage (%) Votes cast in favour Votes cast against Total Votes 1348 73 1421 447306757 192628 447499385 99. 2010 at 10. Dates of Book Closure The Share Transfer Books and Register of 31 . C. 48. of Messrs S M Gupta & Company.

if approved by the shareholders at the ensuing Annual General Meeting to be held on Wednesday.80 63. a SEBI registered body as its Registrar and Share Transfer Agent for processing transfers. especially those holding securities in single name.60 124.20 107. Kolkata – 700 019. The Final Dividend @ Re 0. 9. Therefore.15 119.60 124. etc.50 78.40 per equity share as recommended by the Board at its meeting held on 28th April. 14th July.) High (Rs.) Low (Rs. subdivision.45 97.60 119. Demat Request Forms (DRF) and Share Certificates. the Company’s shares are traded on the Stock Exchanges. to its shareholders.00 40. if the shares are held in dematerialized form. consolidation. In cases where the securities/deposits are held in joint names. 3.55 86.25 72.40 * * * * * * * * * * * * CSE* * * * * * * * * * * * * High (Rs. Dividend Payment Date During the financial year 2009-10. to avoid the process of transmission by law.00 63. etc. the Company paid an interim dividend @ Re 0.05 108.40 88. as per the format prescribed by them.) (#) Source BSE and NSE web-site * No trading on the exchange 6.60 per equity share.80 62. the nomination will be effective only in the event of the death of all the holders. Share Transfer System As already stated. Since trading in Company’s shares can now be done only in the dematerialized form request for demat and remat should be sent directly to the Registrar.75 87. Investors holding shares in physical form may obtain nomination form from the Registrar and Share Transfer Agent of the Company. therefore. compulsorily in demat mode. Share Price in Relation to BSE Sensex 130 120 EXIDE BSE HIGH 18000 17000 16000 100 90 80 70 60 September 2009 EXIDE BSE HIGH BSE Sensex 15000 14000 13000 12000 November 2009 December 2009 February 2010 October 2009 January 2010 August 2009 March 2010 May 2009 June 2009 April 2009 July 2009 50 11000 BSE SENSEX 110 32 . will be paid within 30 days from the date of the Annual General Meeting.00 125.45 97.00 79.) Low (Rs.50 108. P-22 Bondel Road. Stock Market price data for the year on BSE.90 128. Share Transfer Agent The Company has engaged the services of C B Management Services (P) Ltd.) Low (Rs.EXIDE INDUSTRIES LIMITED 7. 2010.10 119. 2010 (both days inclusive).95 NSE (#) 57.90 49.80 128. This facility is mainly useful for all holders holding the shares/debentures/ deposits in single name.) High (Rs. 8.00 111. should be sent by their Depository Participants (DP’s) directly to the Share Transfer Agents. 2010 for the year ended 31st March.90 86. Investors are advised to avail of this facility. 1999 has introduced through Section 109A.60 107. Members of the Company will remain closed from 6th July.45 97.45 72. However.50 128. viz. ensure that their DP’s do not delay in sending the DRF and Share Certificates to the Share Transfer Agent after generating the DRN.20 97.25 119.40 78.60 104.90 87. 2010.55 101. Listing of Equity Shares on Stock Exchanges and Stock Code/ Symbol The Equity Shares of the Company are presently listed on the following Stock Exchanges: Name of the Stock Exchange The Calcutta Stock Exchange Limited Bombay Stock Exchange Limited National Stock Exchange of India Limited Stock Code 15060 & 10015060 500086 – Symbol – – EXIDEIND 5. The Company has made arrangements for dematerialisation of its shares currently held in physical form with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).55 78.50 40.65 101. shareholders are requested to kindly note that physical documents.00 111. 4. Shareholders should.25 96. Any delay on the part of the DP’s to send the DRF and the Share Certificates beyond 15 days from the date of generation of the DRN by the DP will be rejected /cancelled. 2010 to 14th July. NSE & CSE Month April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 BSE (#) 57. the facility of nomination to share/debenture/deposit holders.05 63.85 48.25 88.80 104. the nomination has to be intimated to your depository participants directly.25 97. Nomination Facility The Companies (Amendment) Act. This is being done to ensure that no demat requests remain pending with the Share Transfer Agent beyond a period of 30 days.

2010 Range From 1 5001 10001 20001 30001 40001 50001 To 5000 10000 20000 30000 40000 50000 100000 31438204 16574269 15203138 8605730 5731691 3978236 12175053 756293679 850000000 3. Bawal .66 3. Hosur Taluk. Fax No.in (b) C B Management Services (P) Ltd. HSIDC Growth Centre. Kolkata – 700 019 Contact Person: Mr Sankar Ghosh.48 6. Dist Krishnagiri .00 56680 2349 1103 355 166 89 172 257 61171 92.721 602 Plot No. 15.95 1.28 0.99 13. of shares of face value of Re 1/. Warrants or any other convertible instruments.Shareholding Pattern of the Company as on 31. 59E Chowringhee Road.22 Bondel Road. 24 Parganas (N) .Outstanding GDRs/ADRs/Warrants or any convertible instruments. Pune . Vice President.00 13. Tel Nos. Insurance Companies & Banks Public Bodies Corporate Directors & their relatives TOTAL No. ADRs.48.98 100. Sector 3.01 0.Dematerialisation of Shares As on 31 March.411 019 Plot No.19.Share Transfer Record Month April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 No. : [033] 2283 2637.in 100001 & above TOTAL 12.51.8% representing 41.Distribution of Shareholding as on 31. 2010. Shamnagar.06 0. MIDC Industrial Estate. 179.15 0.57 0.123 501 D2.com (c) For investor grievances shareholders may send an email to cosec@exide.co. shares of holders % of total holders 16.84 1. 51.70 1.635 103 11.59 10. Tel No.67 0.each % of total Total no. Fax No. West Bengal .42 100.711 shares are held in dematerialized form and 48.co. of shares processed 24210 13902 4588 184 11313 7510 4403 4861 34723 20754 35133 7238 14. Athpur.80 0.743 128 Durgachak.Address for Correspondence The Company’s registered office is situated at Exide House. of Shares 390954666 111027330 4047051 58294276 96. T-17 MIDC Taloja Industrial Area.43 88.00 No. Haldia. Company Secretary and Compliance Officer. Dist Midnapore.79 1.03. conversion date and likely impact on equity The Company has not issued any GDRs.47 1. email : supriyac@exide.10 100. of transfers 7 7 6 3 9 12 10 4 25 12 27 14 No. Kolkata 700 020.2010 Category Promoter Holding Foreign Institutional Investors Non Resident Individual Mutual Funds Financial Institutions. P. Kolkata – 700 020 Contact Person: Mr Supriya Coomer. 59E. Taloja .58 0. 33 . : [033] 4011 6700.7160 98511365 89822925 855227 850000000 % of total issued share 45. Shareholders correspondence should be addressed to: (a) Share Department.80. Exide Industries Limited. : [033] 2283 2636.Plant Locations Location West Bengal West Bengal Haryana Maharashtra Maharashtra Tamil Nadu Address 91 New Chord Road.410 208 Chichurakanapalli.03. Chowringhee Road. Exide House.289 shares are in physical form. Chinchwad East. email : rta@cbmsl.27 0.35 11.EXIDE INDUSTRIES LIMITED 10. : [033] 2280 0263.48.2% of the Company’s total shares representing 43. Sevaganapalli Panchayat.86 11.

The compliance of conditions of corporate governance is the responsibility of the management. Remuneration Committee i) The above Committee has been constituted as per the provisions contained in Schedule XIII of the Companies Act. may be sent to each household of shareholders. on the Board of the Company. AUDITOR’S CERTIFICATE To the Members of Exide Industries Limited We have examined the compliance of conditions of corporate governance by Exide Industries Limited. Not adopted Not adopted Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges on Code of Corporate Governance. 16667 34 . Whistle Blower Policy The Company may establish a mechanism for employees to report to the management concerns about unethical behavior. the Chairman of the Remuneration Committee was not present at the last AGM as he was indisposed.EXIDE INDUSTRIES LIMITED Status as regards adoption/non adoption of non-mandatory requirements laid down in revised Clause 49 of the Listing Agreement and forming part of the Report on Corporate Governance Particulars The Board a) Non-Executive Chairman may maintain a Chairman’s office at the expense of the Company. adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges. 1956. However. Evaluation of Non-Executive Board members Mechanism for evaluating performance of non-executive directors by peer group consisting of entire board excluding the director being evaluated. iii) The Chairman of the Committee was present at the last Annual General Meeting of the Members. a period of nine years. Firm Registration No. Our examination was limited to procedures and implementation thereof. their responsibilities as Directors and the best ways of discharging them. 301003E Chartered Accountants Place: Mumbai Date : 28th April. However. b) Independent Directors may have a tenure not exceeding in the aggregate. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. 2010 Per R K Agrawal Partner Membership No. Certificate from the Statutory Auditors regarding compliance of conditions of Corporate Governance by the Company is annexed. All members of the Board are experts in their respective fields and well aware of the business model of the Company as well as its risk profile. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. ii) The Chairman of the Committee is an Independent Director. Training of Board members Board members may be trained in the business model of the Company as well as on the risk profile of the business parameters of the company. not sent during the year 2009-2010 as part of austerity measures due to economic uncertainty. Adopted. Shareholders Rights A half-yearly declaration of financial performance including summary of the significant events in the last six months. Audit Certifications Company may move towards a regime of unqualified financial statements. Adopted even before Clause 49 became effective. for the year ended on 31st March 2010. actual or suspected fraud or violation of the Company’s code of conduct or ethics policy. Status Not Adopted Not Adopted Adopted Adopted Adopted. For S R Batliboi & Co. In our opinion and to the best of our information and according to the explanations given to us.

04. and c) there are no transactions entered into by the Company during the year which are fraudulent. that we have reviewed the financial statement and cash flow statement of the Company for the financial year ended 31st March. T V Ramanathan. Place : Mumbai Date : 28. I hereby declare that all the Board members and senior management personnel of the Company have complied with the Code of Conduct of the company for the year ended 31st March. and further state that there were no deficiencies in the design or operation of such internal controls. we accept the responsibility for establishing and maintaining internal controls and that we have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to the Auditors and the Audit Committee. For the purposes of financial reporting. and c) no instances of fraud. We do further certify that there has been: a) no significant changes in internal controls during the year. 2010. 2010. Director-Finance & CFO of Exide Industries Limited certify to the Board in terms of the requirement of Clause 49 V of the Listing Agreement with the Stock Exchanges. b) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards. illegal or violative of the Company’s Code of Conduct. 1.700 020 We. of which we are aware during the period.04. 3. Place : Mumbai Date : 28. applicable laws and regulations.2010 T V Ramanathan Managing Director & CEO 35 . To the best of our knowledge. we certify that: a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that are misleading.2010 T V Ramanathan Managing Director & CEO A K Mukherjee Director-Finance & CFO ANNUAL DECLARATION UNDER CLAUSE 49(I)(D) OF LISTING AGREEMENT WITH STOCK EXCHANGES DECLARATION As required under Clause 49(I)(D) of the Listing Agreement with the Stock Exchanges. b) no significant changes in accounting policies during the year. Managing Director & CEO and A K Mukherjee. 2.EXIDE INDUSTRIES LIMITED CERTIFICATION BY CHIEF EXECUTIVE OFFICER (CEO) & CHIEF FINANCIAL OFFICER (CFO) The Board of Directors Exide Industries Limited Exide House 59E Chowringhee Road Kolkata.

which to the best of our knowledge and belief were necessary for the purposes of our audit. we report that: i. evidence supporting the amounts and disclosures in the financial statements. Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. We have obtained all the information and explanations. 1956. the said accounts give the information required by the Companies Act. For S. 2003 (as amended) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act. a) in the case of Balance Sheet. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. v. BATLIBOI & CO. We conducted our audit in accordance with the auditing standards generally accepted in India. Firm Registration Number: 301003E Chartered Accountants per R K AGRAWAL Place : Mumbai Partner Date : 28 April. of the cash flows for the year ended on that date. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in subsection (3C) of Section 211 of the Companies Act. Our responsibility is to express an opinion on these financial statements based on our audit.R. and c) in the case of Cash Flow Statement. An audit also includes assessing the accounting principles used and significant estimates made by the management. 16667 iv. ii. An audit includes examining.EXIDE INDUSTRIES LIMITED AUDITORS’ REPORT TO THE MEMBERS OF EXIDE INDUSTRIES LIMITED We have audited the attached Balance Sheet of Exide Industries Limited (‘the Company’) as at March 31. as on 31st March 2010 and taken on record by the Board of Directors. 1956. Further to our comments in the Annexure referred to above. 2010. 1956. we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 2010 Membership No. As required by the Companies (Auditor’s Report) Order. iii. the Balance Sheet. In our opinion. on a test basis. The Balance Sheet. we report that none of the directors is disqualified as on 31st March 2010 from being appointed as a director in terms of clause(g) of sub-section(1) of Section 274 of the Companies Act. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. 36 . These financial statements are the responsibility of the Company’s management. We believe that our audit provides a reasonable basis for our opinion. On the basis of the written representations received from the directors. In our opinion. b) in the case of Profit and Loss Account. 2010 and also the Profit and Loss account and the cash flow statement for the year ended on that date annexed thereto. In our opinion and to the best of our information and according to the explanations given to us. as well as evaluating the overall financial statement presentation. 1956. of the profit for the year ended on that date. vi. of the state of affairs of the Company as at March 31. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

As informed. (iv) In our opinion and according to the information and explanations given to us. in our opinion. (iii) (a) The Company has granted unsecured loan to two companies covered in the register maintained under section 301 of the Companies Act. has now been written off in the accounts during the year. firms or other parties covered in the register maintained under section 301 of the Companies Act. in our opinion and according to the information and explanations given to us.07 crores. no major weakness has been noticed in the internal control system in respect of these areas. we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. which was provided for as doubtful of recovery in the previous year. (ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year. (c) In respect of above loans. the recovery of principal amount has not fallen due but the recovery of interest has been regular except for the loan written off. However. including quantitative details and situation of fixed assets. (b) All fixed assets have been physically verified by the management during the year which. the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time. there is an adequate internal control system commensurate with the size of the Company and the nature of its business. no material discrepancies were noticed on such verification. (c) There was no substantial disposal of fixed assets during the year. The maximum amount involved during the year was Rs. to the extent applicable.58 crores to one of the above companies. is reasonable having regard to the size of the Company and the nature of its assets. 1956. where no interest income has been recognized for the year. secured or unsecured from companies. (v) (a) According to the information and explanations provided by the management.EXIDE INDUSTRIES LIMITED ANNEXURE TO THE AUDITORS’ REPORT TO THE MEMBERS OF EXIDE INDUSTRIES LIMITED (REFERRED TO IN OUR REPORT OF EVEN DATE) (i) (a) The Company has maintained proper records showing full particulars. loan of Rs. the directives issued by Reserve Bank of India and the provisions of sections 58A. as stated in (b) above. the rate of interest and other terms and conditions for such loans are prima facie not prejudicial to the interest of the Company. (b) In our opinion and according to the information and explanations given to us. (d) As informed. 0. the Company has not taken any loans. for the purchase of inventory and fixed assets and for the sale of goods and services. 1956. have been complied 37 . 2. 1956 and the rules framed there under. (b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.65 crores and the year-end balance of such loans is Rs. 2. (vi) In respect of deposits accepted. 58AA or any other relevant provisions of the Companies Act. (b) In our opinion and according to the information and explanations given to us. During the course of our audit.

excise duty and cess and other material statutory dues have been regularly deposited with the appropriate authorities.09 2000-01 to 2003-04 1996-97 to 2005-06 Various appellate authorities Various appllate authorities 0.52 Various appellate authorities Civil Court.80 15. is commensurate with the size and nature of its business. customs duty. which in our opinion. 1949 The Central Sales Tax Act. excise duty. wealth-tax. investor education and protection fund. We are informed by the management that no order has been passed by the Company Law Board. income-tax. service tax. (vii) In our opinion. are as follows: Period to which the amount relates Assessment Years 2001-02 Assessment Years 2005-2006 and 2006-07 1993-94 to 2007-08 2000-2001 Forum where dispute is pending Income Tax Appellate Tribunal CIT. wealth-tax. cess and other undisputed statutory dues were outstanding at the year end. and are of the opinion that prima facie. (c) According to the records of the Company. the dues outstanding of income-tax. income. undisputed statutory dues including provident fund. Appeals Name of the statute The Income Tax Act. sales-tax. 1961 Nature of dues Disallowance of certain expenses – Do – Amount (Rs in crores) 0.50 The Central Excise and Customs Act.12 Demand relating to non submission of C forms and other documents Demands relating to non submission of Local forms /dispute related to classification of goods 0. employees’ state insurance.tax. 1956 Various States Sales Tax Act Determination of Assessable Value/Denial of exemption notification/Wrong Availment of Cenvat Credit Demand for Octroi duty 3. (b) According to the information and explanations given to us. investor education and protection fund. sales-tax. Pune 0. (viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act. service tax. customs duty. sales-tax. employees’ state insurance. excise duty and cess on account of any dispute. the Company has an internal audit system.62 38 . service tax. 1956. for a period of more than six months from the date they became payable. custom duty.EXIDE INDUSTRIES LIMITED with. no undisputed amounts payable in respect of provident fund. wealth-tax. National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. the prescribed accounts and records have been made and maintained. (ix) (a) Based on the test check carried out by us and as per the information furnished to us. 1944 The Bombay Provincial Municipal Corporation Act.

(xiii) In our opinion. BATLIBOI & CO.EXIDE INDUSTRIES LIMITED (x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. For S. we report that no fraud on or by the Company has been noticed or reported during the course of our audit. proper records have been maintained of the transactions and contracts and timely entries have been made therein. the Company is not a chit fund or a nidhi/mutual benefit fund/society. 2010 Membership No. (xv) According to the information and explanations given to us. the Company has not given any guarantee for loans taken by others from bank or financial institutions. The company is not dealing/trading in shares. 39 .R. 1956. (xiv) In respect of dealing/trading in mutual fund units. There were no outstanding debentures during the year. term loans were applied for the purpose for which the loans were obtained. debentures and other securities. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of Company. The units have been held by the Company. 2003 (as amended)are not applicable to the Company. (xviii) The Company has not made any preferential allotment of shares during the year to parties or companies covered in the register maintained under section 301 of the Companies Act. Therefore. (xvi) Based on the information and explanations given to us by the management. (xix) The Company did not have any outstanding debentures during the year. Based on our audit procedures and as per the information and explanations given by the management. we report that no funds raised on short-term basis have been used for long-term investment. securities or any other investments. we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution or bank. in our opinion and according to the information and explanations given to us. 16667 (xi) (xii) According to the information and explanations given to us and based on the documents and records produced to us. the Company has not granted loans and advances on the basis of security by way of pledge of shares. Firm Registration Number: 301003E Chartered Accountants per R K AGRAWAL Place : Mumbai Partner Date : 28 April. debentures. the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order. (xx) The Company has not raised any money through a public issue during the year. in its own name. (xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management.

368.250. Ramanathan A.00 1. As per our report of even date.608. in Crores 85.37 606. 2010 S.33 98.44 1.2010 31.70 668.368.76 179.54 592.219.73 Schedules 1 to 12 and 24 referred to above form an integral part of the Balance Sheet. V.47 231.73 105. K.77 3 0.K.20 1.77 254. R. in Crores Rs.00 17.170.99 59.94 1.59 911.31 668.31 685. Firm Registration No.00 2.02 33.62 137.EXIDE INDUSTRIES LIMITED BALANCE SHEET AS AT 31st MARCH 2010 SCHEDULE SOURCES OF FUNDS Shareholders’ Funds Share Capital Reserves & Surplus Loan Funds Secured Unsecured Deferred Tax Liability (net) 31.18 41.77 2.3. S.82 4 89.70 588.64 254.35 1.76 714.68 37. Batliboi & Co.335.71 38. Loans & Advances Inventories 7 Sundry Debtors 8 Cash and Bank Balances 9 Loans & Advances 10 Less: Current Liabilities & Provisions Current Liabilities Provisions Net Current Assets Notes to Accounts 24 1.2009 Rs. Mukherjee Directors 40 . in Crores Rs. Raheja T. Coomer Secretary R.58 2.256.95 2. 301003E Chartered Accountants per R. 28 April. G.82 1.78 676. Agrawal Partner Membership Number: 16667 Mumbai.46 659.56 317. in Crores Rs.58 11 12 494.87 318.48 438.76 380.3.38 741.35 1 2 APPLICATION OF FUNDS Fixed Assets 5 Gross Block Less: Accumulated Depreciation/ Amortisation Net Block Add: Capital Work-in-Progress including Capital Advances Investments 6 Current Assets. Kapadia R. B.73 80.608.88 47.00 2.134.91 486.17 89.336.

04 225.35 464.44 861. Value Added Tax & Octroi Net Sales Other Income EXPENDITURE (Increase)/Decrease in Stocks Materials Consumed Purchase of Trading Goods Personnel Costs Expenses Interest and Finance Costs Depreciation/Amortisation 14 4. K.29 80.30 565.00 12.69 185.995.64 10.39 281.68 250.27) 2.89 67. V. K. in Crores INCOME Gross Sales 13 Less:Excise Duty (refer note no III ‘b’ on schedule 24) : Sales Tax.92 3.11 15 16 17 18 19 20 (49.41 375. As per our report of even date.50 537.47 3.52 810.90 429. in Crores PROFIT BEFORE TAX Taxation (net) PROFIT AFTER TAX Balance brought forward 21 PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATIONS General Reserve Interim Dividend Tax on Interim Dividend Proposed Dividend Tax on above Dividend Surplus carried to Balance Sheet S.49 25.08 516.00 284. in Crores Rs.27 419.02 6.00 5. in Crores 4. Batliboi & Co. Ramanathan A.59 861.10 435. S.95 2.223.96 6.EXIDE INDUSTRIES LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2010 SCHEDULE Rs. Agrawal Partner Membership No.21 170.00 32. 6. R. 2010 Rs.44 16.20 12.210. G.964.00 8.09 324.59 273. Mukherjee Directors 41 .39 151.65 2. 28 April. Firm Registration Number: 301003E Chartered Accountants per R.94 2.806.69 2009-2010 Rs.00 48. B.59 565.794.541.Basic & Diluted -(Nominal Value Per Share Re 1) (refer note no III ‘m’ on schedule 24) Notes to Accounts 24 Schedules 13 to 24 referred to above form an integral part of the Profit & Loss Account. Coomer Secretary R. 3.68 Earning per share .00 2.47 3.55 2008-2009 Rs.66 324.16 34.11 3.233. 16667 Mumbai.74 328. Raheja T.00 5.01 47.393.21 498. Kapadia R.69 Rs.399.

91 (74.61) 92. BATLIBOI & CO. S.83) 33.00) 70.51) 0.74) (168.74) (79. V. K.91) – (125.88) 60.44) 504.31 107. 16667 Mumbai.30) 8.17 (138.15) – (147.02 2.82) 32.88) (33.33 (95.82) (13.32 (72.00) 817.62) – (74.61 551. K.88) 4. 28 April.01) (0. in Crores Rs.27 4. in Crores 435.49 893.08 (293.70 (989. 1.84 28. 2.27 (318.42) (173.39 (A) CASH FLOW FROM OPERATING ACTIVITIES: Net Profit before tax Adjustment for : Depreciation Profit on Fixed Assets sold Loss on Fixed Assets sold / discarded Provision/(Recovery) for Diminution in Value in Investments Provision /(Recovery) for Doubtful Loans and Advances Dividend Income Interest Expense Interest Income Unrealised (Gain) / Loss on Foreign Exchange Operating profit before working capital changes (Increase)/Decrease in Sundry Debtors (net of provision) (Increase)/Decrease in Inventories (Increase)/Decrease in Loans & Advances Increase/(Decrease) in Current Liabilities Cash generation from operations Direct Taxes Paid (net of refund) Net Cash from operating activities (B) CASH FLOW FROM INVESTING ACTIVITIES: Purchase of Fixed Assets Sale of Fixed Assets Acquisition of Shares Sale of Shares Purchase of Mutual Fund units Sale of Mutual Fund units Interest Received Dividend received Net Cash used in investing activities (C) CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from Long Term Borrowings Repayment of Long Term Borrowings Net increase/(decrease) in other borrowings Net Proceeds from Issue of Shares (including Share Premium) Dividends Paid (including tax) Interest Paid Net Cash used in financing activities Net Increase/(decrease) in cash and cash equivalents Cash and cash equivalents as at 1 April 2009# Cash and cash equivalents as at 31 March 2010# 82.73 (107.15 (100.24) 523. Raheja T. B.75 1.84 2008-2009 Rs.59 80. being the amount available for restricted use.00 0.56) 0. in Crores 810.05) 0. Mukherjee Directors S.08 115. G.32) – 67.01 (769. Ramanathan A.17 643. Coomer Secretary 42 . 2010 R.03 1.71 2.EXIDE INDUSTRIES LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2010 2009-2010 Rs.73 (76.30) 12.31 1.45) 529.19 132.39 2.03) (8.00) (5.71 # as disclosed in Schedule 9 * Includes Rs. Agrawal Partner Membership No.40 (0.00) 444.94 (2.47) 214.06) 35.65 (0.76) 10.27 (119. Kapadia R. As per our report of even date. in Crores Rs.88 * (153.68 33.61 (0.58 (2. R. Firm Registration Number: 301003E Chartered Accountants per R.00 (23.00 0.48 (30.35 (0.06 crs (Rs.69 crs) lying in Unclaimed Dividend Account.96) 0.

000.134.00 Issued.35 43 . RESERVES & SURPLUS Rs.170.00 250.000 shares issued for consideration other than cash and 541.350.00 80. in Crores Revaluation Reserve – Balance as per Last Account Less: Adjustment towards assets sold/discarded Less: Transfer to Depreciation Account 32.60 0.60 213.10 Rs.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE ACCOUNTS AS AT 31st MARCH 2010 Par Value Rs.90 1.469. SHARE CAPITAL Authorised 1.00 516.00 600.59 738.00 Rs.20 3.66 85.59 1.00 850.00 185. in Crores 30.580 shares issued as fully paid up bonus shares by capitalisation of Securities Premium and Capital & Revenue Reserves.44 2.3.000) Equity Shares fully paid up 1 * Includes 1.2010 Rs.16 – – 213. in Crores 36.68 1. 2.2009 Rs.000. 1.50 9. Subscribed and paid up * 850.16 534.3.77 415.00 100.00 100.00 100.000.16 General Reserve Balance as per Last Account Add: Transfer from Profit & Loss Account Profit & Loss Account Balance 600. in Crores 31.000.000 (800.00 324. in Crores Rs. in Crores 1 100.000 Equity Shares 31.07 213.26 Securities Premium Account Balance as per Last Account Add: Amount received on issue of shares Less: Share Issue Expenses adjusted (Refer Note no III ‘I’ on Schedule 24) 32.

DEFERRED TAX LIABILITY (NET) Balance as per Last account Add / (Less): Deferred Tax Liability / (Asset) for the year (Refer note no III ‘j’ on Schedule 24) 5.89 Deductions Rs.3.29 188.27 1. in Crores – – – 1.67 12. (b) Secured by hypothecation of stocks & book debts.31 71.34 46. in Crores Goodwill Land Freehold Leasehold Buildings Plant & Machinery Moulds Furniture & Fittings Motor Vehicles Computers Total Previous year’s Total Capital Work-in-progress (g) 1.2010 Rs.18 Overdraft from Scheduled banks (b) UNSECURED Sales Tax Loan from Small Industries Promotion Council of Tamil Nadu Term Loan from Bank of America NA Term Loan from Standard Chartered Bank * Includes repayable within one year Rs.20 ACCUMULATED DEPRECIATION / AMORTISATION Depreciation/ Less: On Sales/ As at As at 1.in Crores (a) – – 0.00 22.66 Cost/Valuation as at 31.30 149.26 2.68 0.70 1. in Crores Rs.77 7.07 4.34 crores (Rs Nil) being accelerated depreciation on certain buildings not in use.3.72 15.83 0.2010 31.00 – 2.45 0.in Crores Rs.99 1.23 9.10 crs) being the cost of shares in Co-operative Housing Societies.45 82.38 454.2009 Rs.55 7.46 1. FIXED ASSETS GROSS BLOCK Cost/Valuation as at 1.50 588.44 50.80 59. in Crores – 1.23 24.22 61. in Crores – 36.12 1. Includes Rs 0.00 – 89. Conveyance deeds for certain immovable properties valued at Rs 3.39 11.40 12.12 137.2010 Rs.2009 Rs.59 67. 4.07 45.67 14. in Crores. Includes Trade Marks.89 1.13 0.06 3.31 685.62 65.44 – 34.71 3.70 415.20 17.00 47.73 0.72 12. 23.14 0. in Crores 1. d.12 0. 47.06 65.49 15.87 203.78 588.70 542.06 1.77 crs (Rs 3.76 714.77 crs) are pending execution. in Crores 1.56 659.70 41. in Crores Rs.50 13.44 crs (Rs.46 (d) 61.17 64.57 54.49 17.79 510.53 152.36 – – 0.52 99.4.3.17 0.3.70 1.87 199. both present and future.3.76 6.00 79.91 – 6.63 92.4. Patents and other intangibles.2009 Rs.53 29.05 5.40 0. in Crores Rs.in Crores 31.13 110.67 0.56 676. 31.72 crs) Securities (a) Secured by hypothecation of Plant and Machinery.66 8.45 0.82 25.62 179.70 NET VALUE As at As at 31.90 (6.00 (a) 34.70) 41.58 17. LOAN FUNDS SECURED Term Loans – Citibank N.097. Moulds and other movable assets of the company located at its Hosur factory. Rs.01 4. b. 44 .58 15.91 (c) 931.00 – 2.04 – – – 1.39 668.79 20.30 37.12 421.2009 Amortisation Adjustments 31.95 4.82* 89.42 1.56 317.99 100.48 2.00 17.28 6.EXIDE INDUSTRIES LIMITED Rs.00 36. c.00 100.256. in Crores 3.56 0.47 Additions Rs. Includes Rs 3.34 2.10 crs (Rs 0.A.2010 Rs.336.08 869.68 37.78 19.31 a.256.3.

50. Australia ING VYSYA Life Insurance Company Limited Arkay Energy (Rameswaram) Limited Haldia Integrated Development Agency Ltd.78 7. 10 19.93 22.48 Cost Market Value 55. Estimated outstanding commitments for Capital Expenditure Rs 57.100 Rs. in Crores Rs. g.86.99 0.22 Market Value 625.000 0. Land.62 606.000 GBP 1 38.02 176.566 ( – ) Rs.47 153.800 Rs.01 450.500 Shares Pending allotment as at Balance Sheet date-Since alloted. Loose Tools etc. Spare parts.42 117.31 – 625.52 141. 1.18 Cost 629.93 25.41 10. # Net of Provision for diminution in value of investments Rs.2010 Rs.E.640 Sri Lankan Rp 10 Australian $1 Rs. 10 100 6. Buildings and Plant & Machinery of the Company as on 31 March 1991 and 1999 were revalued by the approved valuers and the surplus arising thereon.000) .30 613.78 7.20 2.77 438. ^ Figures being less than Rs.16 152. 10 70.41.93* 1.000 Rs. except those marked with an asterisk.41 crs).66.45 crs (Rs. in Crores 0. in Crores Rs.50 – – .2009 Rs.000 Rs. INVENTORIES (At Lower of Cost or Net Realisable Value) Stores.20 2.00. 10 26.73 – 0.000 20 1 *^ 10. Asia Pte Limited Espex Batteries Limited Associated Battery Manufacturers (Ceylon) Ltd Others – CEIL Motive Power Pty Limited.3.00 33. Long Term Unquoted Government Securities (Lodged as Security Deposit with various authorities) Fully paid up Equity Shares Subsidiary Companies – Chloride International Limited Caldyne Automatics Limited Chloride Metals Limited Leadage Alloys India Limited Chloride Batteries S.15 706.(700000) 500. 10 Rs.30 55.335.52 262. As in the previous years.35 0.(26) 61.22 602.23 144. 10 53.46.80. 6.00 33.45 2. 10 Rs.02 crs.41. Raw Materials and Components @ Work-in-Progress Finished Goods @ Add: Excise Duty Trading Goods @ Includes materials in transit/Bonded warehouse or lying with third parties Face Value per Share/Debenture Rs.3.2010 31.92.Quoted Units in Mutual Funds (Refer Note no III ‘t’ on Schedule 24) Aggregate Value of Investments Quoted Unquoted Note: All the above investments.96.35 0. 10 23.31 –# 531.34 45 .50 – *^ – 0.77 31.37 – 55. Includes assets in transit.45 161.EXIDE INDUSTRIES LIMITED e.3.000 in each case. has not been disclosed 7. INVESTMENTS 31. are trade investments ** Includes 10. in Crores 0.2009 No.00.37.41 10.500** (52. Fully paid up Debentures Woodlands Medical Centre Ltd 1/2% Debentures 5% Non-redeemable Registered Debentures Quoted Fully Paid up Equity Shares Hathway Cable and Datacom Limited (Aggregate Market Value Rs 22. 15.70 0.60 31.in Crores 12.60 2. has been transferred to Revaluation Reserve. additional depreciation for the year on the revalued assets has been appropriated from the Revaluation Reserve.3. in Crores 13.01 * Rs.93 25.30 668.000 Singapore $1 102. f.26 20.00.67 Crores) Current .

in Crores 9.44 494. Refunds receivable and Tax deducted at source (net of provisions) Balances with Customs.64 2.04 38.02 47.73 3.00 2.07 0.2010 Rs.91 46 .00 5.27 11.54 7. SUNDRY DEBTORS (Unsecured.2009 Rs.58 crores) 11. 2.97 2. PROVISIONS Employee Benefits Product related Warranty/Guarantees (Refer note no III ‘k’ on Schedule 24) Taxation (net of Advance Tax) Proposed Dividend Tax on Proposed Dividend 4.50 – 34.71 10.13 221.06 0.56 1.37 * 250.75 0. LOANS AND ADVANCES (Unsecured.01 0.89 – 2.88 13.01 0.51 2.69 20.23 16.08 crs (Rs.in Crores Rs.89 231.70 2.18 0. considered good) Debts over six months Other Debts * Net of doubtful debts fully provided for # (Refer Note no III ‘h’ on Schedule 24) 9. considered good) Dividend Receivable – From Subsidiary Companies Loans – To a Subsidiary Company – Others Interest Accrued on Loans Advances recoverable in cash or in kind or for value to be received or pending adjustments Advance Tax. Sales Tax & Excise Authorities Deposits – Others * Net of Provision for Doubtful Loans and Advances Rs.34 24.79 33.77 292.33 13.82 0.77 1.25 2.in Crores 8.38 5.68 51. in Crores Rs.71 47. CASH AND BANK BALANCES Cash and Cheques in hand (including Remittances in transit) Balances with Scheduled banks on: Current Account Unclaimed Dividend Account 4.06 11.61 10.EXIDE INDUSTRIES LIMITED 31.63 14.3. CURRENT LIABILITIES Sundry Creditors – Due to Micro and Small enterprises (Refer note no III ‘e’ on Schedule 24) – Due to others Acceptances Other Liabilities Advances from Customers Investor Education and Protection Fund (Refer note no III ‘g’ on Schedule 24) Interest accrued but not due on Loans 12.33 31.96 13.85 8.08 0.96 45.07 0.73 11.21 254.44 385.3.08 – 15.59* 0.08 38. 1.71 32.66 105.63 0.58 # 2.02 1.08 98.32 380.13 24.46 33.

in Crores Rs. 8. MATERIALS CONSUMED Raw Materials.93 2.77 261.47 117.98 3.62 308.532.21 2.47 117. and after adjusting Cenvat Credits) Less: Closing Stock (Refer note no III ‘i’ on Schedule 24) 4.11 1.215.70 251.341. Procurement expenses etc.48 152.43 6.27) 128.96 2.541.95 144. 1.233.EXIDE INDUSTRIES LIMITED 2009-10 Rs.20 47 .45 17.57 (2.73 0.45 141.74 * 2008-09 Rs in Crores Rs. in Crores 4.52 279.00 9.48 7.96 2.354.78 0.73 12.223.14 4.25 1.42 2.486.70 crs). OTHER INCOME Dividend from Long Term Trade Investments (from subsidiary companies) Dividend from Current Non trade Investments Technical Assistance Fees Profit on Fixed assets sold Bad debts recovered Sundry Income 15. SALES Storage Batteries Trading Items Others * Includes Exchange Gain Rs.96 25.82 0.35 147.26 2.05 1. (INCREASE) / DECREASE IN STOCKS Opening Stocks Work-in-progress Finished goods Trading goods Closing Stocks Work-in-progress Finished goods Trading goods Excise Duty * Represents Excise duty on (Increase)/ decrease of Finished goods inventory 16.210. in Crores 13.33 0.08 4. Components etc: Opening Stock Add: Purchases (including Processing charges.12 262.26 2.223.62 144. 14.41 2.38 crs (Rs.45 141.18) * (49.35 4.210.20 2.30 2.16 2.32 0.103.60 3.17 1.60 0.51 0.77 261.42 2.02 153.

47 3. Wages & Bonus Contribution to Provident & Other Funds (net) Welfare Expenses 177. [including Tax deducted at source Rs.10 5.30 0.29 14.21 40. PERSONNEL COSTS Salaries.26 27. deposits etc.18 225.91 18.49 2008-2009 Rs.EXIDE INDUSTRIES LIMITED 2009-2010 Rs.01 0.46 43.24 2.12 4.90 34.78 8.08 0.03 0.57 crs (Includes Loss Rs 13.67 0.07 crs (Rs.61 11.33 1. 0.37 10.36 1. in Crores 17.14 15.27 0.32 4.54 (2.27 – – 2.58 21.44 1.20 170.58 1.02 20.19 0.90 5.77 20.06 crs)] *Net of exchange Gain Rs 3. EXPENSES Stores & Spare Parts consumed Power & Fuel Battery Charging / Battery Assembly expenses Repairs & Maintenance Buildings Plant & Machinery Computers & Softwares Others Rent & Hire Charges Rates & Taxes Insurance Commission Royalty and Technical Aid Fees Publicity and Sales Promotion Freight & Forwarding (net) Selling Expenses (Schedule 22) Travelling & Conveyance Bank Charges Communication Costs Donations Auditors’ Remuneration (refer note no III ‘u’ on schedule 24) Directors’ Sitting Fees Loss on Fixed Assets sold/discarded Bad Debts written off Less: Adjusted against provision Loans and Advances written off Less: Adjusted against provision Loss on Disposal of Long term Trade Investment Less: Adjusted against provision Provision for Doubtful Loans and Advances Provision for Diminution in value of Investments Miscellaneous Expenses (Schedule 23) 33.65 0.44 * 10.01 (1.75 0.54) 1.86 33.72 crs.01 0.54 0.27 498.32 (0.91 57. in Crores Rs.63 4.11 48.98 85.33 4.17 66. INTEREST AND FINANCE COST Interest on: Term Loans Working Capital Borrowings Fund Mobilisation Costs Less: Interest received on loans.02 2.19) 2.52 429.22 48.40 – – – – – – 22.97 28.05) – – 19.14 1. in Crores 134.37 3.97 4. 0.24 12.89 6.19 (0.95 5.43 135.83 2.56 21.16 118.64 28.37 16.44 6.41 5.30 47.61 0.89 48 .15 8.57 0.) 5.01) 0. in Crores Rs.11 105.07 10.32 10.01 0.

09 1.24 0.66 0.62 0.70 crs).10 67.32 0.94 149. SELLING EXPENSES Testing Charges Liquidated Damages Cash Discounts After Sales Services C & F Expenses Installation Costs 2008-2009 Rs.00 0.38 0. TAXATION Provision for Income Tax Provision for Wealth Tax Provision for Fringe Benefit Tax 82. CONTINGENCIES Contingent liabilities not provided for in respect of – Outstanding Bank Guarentees/Indemnity Bonds – Sales Tax demands – Excise Duty demands – Other claims being disputed by the Company – Claim from a landlord.11 0.17 0.50 3.62 3.22 57.61 23.33 22. DEPRECIATION/AMORTISATION Charge for the year Less: Transfer from Revaluation Reserve 21.44 7.EXIDE INDUSTRIES LIMITED 2009-2010 Rs.11 20.in Crores 71.50 Not ascertainable 10.55 1.27 1.18 1.45 33.30 * 0.48 14.59 6.76 0.50 crs).66 80.30 10.86 0. an appeal whereby is pending in Hon’ble Bombay High Court 10.04 3.52 24.81 3. MISCELLANEOUS EXPENSES Motor Vehicle Running Expenses Consultancy & Services outsourced Security Service Charges General Expenses Legal Expenses Printing & Stationery TQM Expenses CSR Expenses Pollution Control Expenses 3.23 32.52 3.31 1.51 14. NOTES TO ACCOUNTS I.54 Not ascertainable 49 .20 0.39 66. (Refer Note no III ‘J’ on Schedule 24) 22. and provision for earlier years Rs 1.03 0.77 0.57 0.20 1.41 crs (Rs 1.24 0.00 0.03 0.65 273.60 151.20 – 273. in Crores 20.53 crs (release Rs 6.33 1.20 0.27 3.86 16.50 * Includes Deferred Tax Liability Rs 0.

EXIDE INDUSTRIES LIMITED

24. NOTES TO ACCOUNTS (Contd.) 2009-2010 Rs. in Crores Rs. in Crores II. DIRECTORS’ REMUNERATION a. Computation of Directors’ commission Profit before taxation Add: Depreciation Less: Net Profit on sale of Fixed assets as per section 349 Less: Depreciation as per section 350 Profit as per section 349 of the Companies Act, 1956 Add: Commission payable to Directors Directors’ remuneration & fees, excluding commission Profit as per Section 198 Maximum Commission permissible to Managing and Whole-time Directors @10% of the net profit as calculated above Actual amount payable in terms of service agreements b. Directors’ Remuneration and Fees 810.59 80.65 (0.35) 891.59 (80.65) 810.94 1.65 4.72 6.37 817.31 1.51 4.19 5.70 439.33 2008-2009 Rs.in Crores Rs.in Crores 435.39 67.94 1.76 501.57 (67.94) 433.63

81.73 1.65 6.37*

43.93 1.51 5.70

*Comprising of salary and performance bonus Rs 3.31 crs (Rs. 2.87 crs), contribution to provident, gratuity & other funds Rs 0.81 crs (Rs. 0.73 crs), estimated cost of other benefits Rs. 0.58 crs (Rs. 0.59 crs) and commission Rs. 1.65 crs (Rs. 1.51 crs) to the Whole-time directors (including Managing Director) and Sitting Fees Rs. 0.02 crs (Rs. 0.01 crs) to Non-Executive Directors. III. OTHERS a. Sales are net of price adjustments for earlier years, settled during the year by the Company and discounts, trade incentives etc (after adjustment of excess provision written back amounting to Rs. 9.93 crs.). b. Excise duty includes Rs. 8.83 crs. (Rs. 11.96 crs) paid on batteries issued towards warranty claims. c. The Company has a full-fledged Research and Development Center and its has thereby been able to considerably further its efficiency. During the year, a sum of Rs. 11.55 crs. (Rs. 9.38 crs), including capital expenditure Rs. 2.73 crs. (Rs. 1.80 crs), was spent on Research and Development work. d. Stores and Spares consumed is exclusive of Rs. 0.37 crs (Rs. 0.29 crs) being the amounts allocated to other heads of expenses. e. The amounts due to Micro and Small enterprises are as follows:1. Principal Amount Rs. 5.44 crs (Rs. 7.77 crs) Interest due on above Rs. 0.02 crs (Rs. 0.01 crs) 2. Amount of interest paid in terms of Sec. 16 of the Micro, Small and Medium Enterprise Development Act 2006 Rs. nil (Rs. nil) 3. Amount of interest due and payable for the period of delay Rs. 0.02 crs (Rs.0.01 crs) 4. Amount of interest accrued and remaining unpaid as at 31st March 2010 Rs. 0.02 crs (Rs. 0.01 crs) 5. Amount of further interest remaining due and payable in the succeeding year Rs. nil (Rs. nil) f. Diminution, based on the net worth as per the latest audited accounts of the relevant Company or market value, in the value of certain long term unquoted/quoted investments as on the Balance Sheet date, being temporary in nature, has not been provided. g. Details of amount payable (when due) to Investor Education & Protection Fund are as follows (Schedule -11)

50

EXIDE INDUSTRIES LIMITED

24. NOTES TO ACCOUNTS (Contd.) 31.3.2010 Rs. in crs Unclaimed Dividend Unclaimed Public Deposits Total h. The particulars of amounts due from Subsidiary Companies are as follows: Name of the Subsidiary A-Sundry Debtors (Schedule-8) Chloride Batteries S.E. Asia Pte Limited Caldyne Automatics Limited Chloride International Ltd. Espex Batteries Limited Leadage Alloys India Limited B-Loans & Advances (Schedule-10) Amounts Due 31/3/2010 0.11 0.69 0.30 0.09 2.39 1.34 31/3/2009 0.07 0.52 0.20 – – – Rs. in crs Amounts Due 31/3/2009 8.18 3.32 0.12 6.99 1.97 Maximum Amount outstanding during the year 31/3/2010 31/3/2009 0.11 0.08 0.69 0.30 0.09 2.39 1.34 0.52 0.20 0.09 – – 2.06 – 2.06 31.3.2009 Rs. in crs 1.70 0.03 1.73

31/3/2010 8.43 5.32 – 11.77 –

Espex Batteries Limited* Associated Battery Manufacturers (Ceylon) Ltd.** Caldyne Automatics Limited*** Chloride International Ltd.*** Leadage Alloys India Ltd.*** Chloride Metals Limited***

i.

j.

* Including GBP 10,000 loan with interest at GBP LIBOR plus 100 basis points, without any repayment schedule and dividend receivable thereon. ** Represents dividend and Technical Assistance fees receivable. ***Represents dividend receivable. Materials consumed (Schedule 16) includes warranty costs Rs. 28.81 crs (Rs. 37.59 crs) and is net of exchange fluctuation Gain Rs. 18.18 crs. (Includes Exchange Loss Rs. 40.64 crs.), export incentives Rs. 5.10 crs. (Rs. 4.64 crs.), and purchase tax set-off Rs.0.64 crs. (Rs. nil). The Break-up of Deferred Tax liability as on 31 March 2010 is as follows: 31.03.2010 Rs. in crs. A. Deferred Tax Liability i) Timing Difference in depreciable assets. ii) Expenses claimed as deduction as per Income Tax Act, 1961 but not booked in current year. Total 58.01 8.36 66.37 31.03.2009 Rs. in crs. 57.76 7.40 65.16

51

EXIDE INDUSTRIES LIMITED

24. NOTES TO ACCOUNTS (Contd.) 31.03.2010 Rs. in crs. B. Deferred Tax Asset i) Expenses allowable against taxable income in future years ii) Expenses disallowed in earlier assessments which are being contested Net Deferred Tax Liability (A-B) 2.91 4.46 59.00 31.03.2009 Rs. in crs. 11.69 12.27 41.20

Based on a recent ruling of The Hon’ble Supreme Court in another case and also its tax assessment order for an earlier year, the Company has treated provision for warranty as an allowable expenditure while estimating the liability for IncomeTax for the year and has also written back excess tax liabilities of Rs.18.09 crores and reversed the corresponding deferred tax asset of Rs 17.27 crores for past years arising due to the above. k. The movements in ‘Provision for Product Related Warranty/Guarantee’ Account during the year are as follows: 2009-10 Rs. in crs. 51.34 37.64 43.48 45.50 2008-09 Rs. in crs. 51.56 49.58 49.80 51.34

Opening Balance:Add: Provision created during the year Less: Product related warranties issued for the year Closing Balance l.

During the year, the Company has issued 5 crores shares of Re 1 each to Qualified Institutional Buyers (QIBs) at a premium of Rs.106.90 to generate funds for its capital expenditure, acquisitions and for general corporate purposes. The total sum received aggregated to Rs.539.50 crores (including Rs.534.50 crores towards Securities premium). Pending utilization of the money for the purposes mentioned above, the Company has temporarily invested the funds in mutual funds after adjusting share issue expenses of Rs 9.59 crores (including Auditor’s remuneration of Rs. 0.27 crores). m. Details for calculation of basic and diluted earning per share are as under: Profit after taxation as per Profit & Loss Account Weighted Average number of equity shares Basic and diluted earning per share n. (Rs. crs.) (No.) (Rs.) 2009-10 537.09 80,27,39,806 6.69 2008-09 284.39 80,00,00,000 3.55

BUSINESS SEGMENT As the Company’s business activity falls within a single primary business segment, viz. ‘Lead Acid Storage Batteries’, the disclosure requirements of Accounting Standard-17 “Segment Reporting”, issued by the Institute of Chartered Accountants of India are not applicable. GEOGRAPHICAL SEGMENTS The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas operations as under: Revenue - Gross Sales 2009-10 Rs. in crs. 4434.18 107.56 2008-09 Rs. in crs. 4113.30 120.05

o.

India Overseas

Assets and additions to tangible and intangible fixed assets by geographical area: The following table shows the carrying amount of segment assets and addition to segment assets by geographical area in which the assets are located : Rs. in Crs. Carrying amount of Additions to fixed assets and segment assets intangible assets including CWIP 31.3.2010 31.3.2009 2009-2010 2008-2009 India 1602.29 1404.53 112.73 159.53 Overseas 23.97 22.36 – – 1626.26 1426.89 112.73 159.53

52

53 0.47 53 .43 0.42 9. The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.17 0. Actuarial (Gains)/Losses 5. Total Expense II. 1972.42 0.12 – 0.11 For the year ended 31st March 2009 GRATUITY PENSION PRMB Plan (Benefit) 1. The Company also extends benefit of compensated absences to the employees. a part of the liability whereof upto 31 March 2003 is in the nature of a defined benefit plan.11 0.68 0.24 – 0.03 9. Benefits Paid 5.95 0. Sr.3. This benefit is unfunded. Expected Return on plan assets 4.81 2.) p. in crs.36 0.86 6.11 8. Fair Value of Plan Assets 3.84 0. and accordingly the number of beneficiaries is frozen on that date.06 0. (i) (ii) (iii) (iv) (v) q.49 crs (Rs. The Company provides certain Post-Retirement Medical Benefits (PRMB) to the employees qualifying for such benefits under the scheme upto 31 March 2006. whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation.3.42 – 0. This is an unfunded plan. Present Value of Defined Benefit Obligation at the end of thye year 1.97 0. pension remains as a defined contribution liability which is funded annually with an insurance company.95 1. The Company has a Pension plan.07 18. The scheme is funded with an insurance company.52 (0.16 0. renewable by mutual agreement.51 6.12 23. in Crs.42 12.12 36. These are cancellable leases.11 – (3.09 (0.49 1.47 – (2. 72.52 crs) towards lease of residential apartments.10 0.98 4.73 37.66 31. 0.68 0.24 29.72 94.59 0. NOTES TO ACCOUNTS (Contd.98 37.30 0.11 0. r. Net Asset/(Liability) recognised in the Balance Sheet 1.60) 29. Interest Cost 3. Rs. 25 crs (Rs. For the year ended 31st March 2010 GRATUITY PENSION PRMB Plan (Benefit) I.59 13.2010 23. Generally.42 9.2009 19.50 29.22 2.71 0.06 0. Current Service Cost 3.46 2.80 1.48 7.01 3.43 0. Change in Obligation during the year 1.09 5.67 1. From 1 April 2003 onwards.67 – 0.81 2. Particulars Trade Receivables Loans given to an overseas subsidiaries Investments in overseas subsidiaries and associates Dividend and Technical fees receivable Trade Payables 31.22 0.59 0.07 0. The Company has paid Rs. Actuarial (Gains)/Losses 6.12 crs).47 0. Gratuity.07 19. Present Value of Defined Benefit Obligation at the beginning of the year 2.24 1.52 56. There are no sub-leases.53 3.16 – 0.26 29.17 – 0. Expenses recognised in the Statement of Profit & Loss Account 1. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act. there is no escalation clause and no other restrictions imposed by the lease arrangements. The following assets and liabilities in foreign currencies as at the Balance Sheet Date are not hedged: Rs.71 The company also has a rupee swap to fully hedge the foreign currency borrowing of Rs. compensated absences and other post-employment benefit plans The Company has a defined benefit gratuity plan.EXIDE INDUSTRIES LIMITED 24.90 0.67 1. Net Asset/(Liability) III.50 9.29) 9.80 2. Interest Cost 4.53 3.07 0. 0.59 0.75 3. No.06 4. Current Service Cost 2. Present Value of Defined Benefit Obligation 2.95 1.11) 2.47) 2.45 0.

EXIDE INDUSTRIES LIMITED

24. NOTES TO ACCOUNTS (Contd.) Rs. in Crs. For the year ended 31st March 2010 GRATUITY PENSION PRMB Plan (Benefit) IV. Change in the Fair Value of Plan Assets during the year 1. Plan assets at the beginning of the year 2. Expected return on plan assets 3. Contribution by employer 4. Actual Benefits Paid 5. Actuarial (Gains)/Losses 6. Plan assets at the end of the year 7. Actual return on Plan Assets V. For the year ended 31st March 2009 GRATUITY PENSION PRMB Plan (Benefit)

29.36 2.51 7.01 2.86 0.50 36.52 3.01

12.53 0.97 0.02 0.84 0.33 13.01 1.30

– – 0.11 0.11 – – –

24.37 2.06 4.74 1.98 0.17 29.36 2.23

12.35 0.95 (0.54) 0.43 0.20 12.53 1.15

– – 0.10 0.10 – – –

In 2010-11 the Company expects to contribute Rs. 5.00 crs to gratuity and Rs. 1.00 crs to Pension. –

VI. The major categories of plan assets as a percentage of the fair value of total plan assets Investments with insurer 100% 100% – 100% 100%

VII. Actuarial Assumptions 1. Discount Rate 7.50% p.a (6.50%) 2. Expected rate of return on plan assets 8.00% p.a (8.00%) 3. Mortality pre retirement Standard Table LIC (1994-96) Ultimate 4. Mortality Post retirement Mortality for annuitants LIC (1996-98) Ultimate 5. Employee Turnover Rate 19.30% (19.30%) VIII. Healthcare cost trend rates have no effect on the amounts recognised in the profit and loss account, since the benefit is in the form of a fixed amount as per the various grades, which is not subject to change. IX. The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. X. Contribution to Provident and Other Funds includes Rs. 12.51 crs (Rs. 10.26 crs) paid towards Defined Contribution Plans. Rs in Crs. XI. Amount for the current and previous four periods are as follows : 1. Gratuity Defined Benefit Obligation Plan Assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 2. Pension Defined Benefit Obligation Plan Assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 3. Post Retirement Medical Benefit Defined Benefit Obligation Experience adjustments on plan liabilities Year ended Year ended Year ended Year ended Year ended March 10 March 09 March 08 March 07 March 06 37.12 36.52 (0.60) (11.15) 0.49 9.59 13.01 3.42 (0.03) 0.33 3.11 0.75 29.24 29.36 0.12 (0.57) 0.17 9.42 12.53 3.11 (0.39) 0.20 2.47 0.01 23.49 24.37 0.88 0.66 0.22 8.67 12.35 3.68 (2.43) 0.14 2.11 (0.05) 22.82 23.20 0.38 2.44 0.10 11.91 14.53 2.62 (2.92) 0.22 2.15 0.70 21.42 22.27 0.85 0.76 1.25 15.50 18.06 2.56 (1.22) (0.03) 2.12 0.31

54

EXIDE INDUSTRIES LIMITED

24. NOTES TO ACCOUNTS (Contd.) s. t. The Ministry of Corporate Affairs, Government of India vide its letter no. 47/68/2010-CL-III dated 19th March, 2010, has exempted the Company from attaching the Annual Reports and other particulars of its subsidiary companies along with the Annual Report of the Company required u/s 212 of the Companies Act, 1956. In additions to the details furnished in Schedule 6, the following investments in Mutual funds units were purchased and sold during the year: Name of the fund Reliance Mutual Fund HDFC Mutual Fund ING Vysya Mutual Fund IDFC Mutual Fund ICICI Prudential Mutual Fund Kotak Mutual Fund Can Rebeco Mutual Fund Tata Mutual Fund Bharti Axa Mutual Fund SBI Mutual Fund Birla Mutual Fund DSP Mutual Fund u. Units Purchased 450,592.26 (420.10) 50,002,584.50 (9.989,321.78) 210,088,401.17 (50,606,168.66) 14,030,895.74 (–) 2,846,775.33 (–) 9,994,859.04 (–) 4,060,529.66 (–) 34,971,817.45 (5,004,440.73) 50,039.49 (–) 5,001,846.16 (–) 25,068,502.31 (–) 49,994.28 (50,151.95) Units Sold 450,592.26 (420.10) 50,002,584.50 (9,989,321.78) 210,088,401.17 (50,606,168.66) 14,030,895.74 (–) 2,846,775.33 (–) 9,994,859.04 (–) 4,060,529.66 (–) 34,971,817.45 (5,004,440.73) 50,039.49 (–) 5,001,846.16 (–) 25,068,502.31 (–) 49,994.28 (50,151.95)

Details of Auditor’s remuneration:2009-10 (Rs. in crs.) Statutory Audit Limited Reviews Tax Audit In other capacity for certificates etc Out of Pocket Expenses Total 0.33 0.22 0.05 0.03 0.02 0.65 2008-09 (Rs. in crs) 0.30 0.18 0.04 0.03 0.02 0.57

v. i)

Related Party Disclosure: Particulars of related parties : 1. Subsidiaries : Chloride Batteries S.E. Asia Pte. Limited, Singapore (CBSEA) Chloride International Limited (CIL) Caldyne Automatics Limited (Caldyne) Espex Batteries Limited, UK (Espex) Associated Battery Manufacturers (Ceylon) Ltd., Sri Lanka (ABML) Chloride Metals Limited (CML-Formerly Tandon Metals Limited) Leadage Alloys India Limited Exide Batteries (Pvt) Limited (Subsidiary of CBSEA)

55

EXIDE INDUSTRIES LIMITED

24. NOTES TO ACCOUNTS (Contd.) 2. Associate Companies : ING VYSYA Life Insurance Company Limited (IVL) CEIL Motive Power Pty Limited, Australia (Upto 24th August, 2009)

3. Enterprise/Individuals having a direct : Chloride Eastern Limited, UK. (CEL) or indirect controls over the company Chloride Eastern Industries Pte Limited, Singapore (CEIL) LIEC Holdings SA, Switzerland Mr. S B Raheja 4. Key Management Personnel : Mr. T V Ramanathan Mr. G Chatterjee Mr. P K Kataky Dr. S K Mittal Mr. A K Mukherjee Mr. Nadeem Kazim Mr. Supriya Coomer

5. Name of the Companies/firms/ : Nil in which Directors/Key Management Personnel have significant influence with whom transactions have happened during the year ii) Details of transactions entered into with the related parties:
Subsidiaries Associate Companies Enterprise/Individuals having direct or indirect control Key Management Personnel

(Rs. in Crores.)
Total Balance Transaction Outstanding as Value on 31-03-2010 – (0.05) 1.68 (9.09) 266.03 (175.46) 603.12 (433.59) 0.01 – 1.07 (0.98) 871.91 (619.17) 41.64 (50.76) 18.59 (12.17) 19.00 (19.34) 80.37 (52.36) 79.11 (75.94) 7.52 (1.13) 246.23 (211.70) – – – – 0.72 (2.08) 2.68 – – – – – 3.40 (2.08) 8.43 (8.18) 5.32 (3.32) 11.77 (6.99) – _ – (1.97) – (0.12) 25.52 (20.58)

Balance Balance Transaction Outstanding as Transaction Outstanding as Value on 31-03-2010 Value on 31-03-2010 Purchases of goods – CIL – ABML – Chloride Metals – Leadage Alloys –CBSEA – Caldyne – Total Sale of goods – CBSEA – Caldyne – Espex – Chloride Metals – Leadage Alloys – CIL – Total – (0.05) 1.68 (9.09) 266.03 (175.46) 603.12 (433.59) 0.01 – 1.07 (0.98) 871.91 (619.17) 41.64 (50.76) 18.59 (12.17) 19.00 (19.34) 80.37 (52.36) 79.11 (75.94) 7.52 (1.13) 246.23 (211.70) – – – – 0.72 (2.08) 2.68 – – – – – 3.40 (2.08) 8.43 (8.18) 5.32 (3.32) 11.77 (6.99) – – – (1.97) – (0.12) 25.52 (20.58) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Balance Transaction Outstanding as Transaction Value on 31-03-2010 Value – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

56

04) 0.32 (0.04 (0.20) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – (2.32 (0.83 (1.98) – – – – – – – – – – – – 0.32) – – – – – – – – – – Balance Transaction Outstanding as Transaction Value on 31-03-2010 Value – – – – – – – – – – – – – – – – – – – – – – – – – – 0.03 (0.28) 6.04) 2.07) – – 0.75 (0.70) 0.31 (2.39 – 1.09) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 0.08 (0.02) 0.01) – – – – – – – – – – 0.36 (0.04) – (0.01 (0.37 * (5. in Crores.01 (0.09 – 0.60 (0. 57 .50) – – – – – – – – – – – – – – – – – – – – – – – – – (0.98) Note: (1) Dividend amounting to Rs.09) 0.63) – – 0.09) 0.98 (1.04 (0.70) 0.07 (0. UK.09) 0.02) – (0. * Details furnished in Corporate Governance Report.12) – – – (0.22 (0.07 (0.33) 0.30 (0.04 (0.30 (0.31 (2.34) – – – – – – 0.01) – – 0.39 – 1.12) 0.08 (0.33) – – 0.43) 2.22 (0.04) – (0.83 (1. II of Schedule 25) to Others Total Remuneration – – 0.01) – (0.01) – (0.34 – 0.04 (0.56 (0.21) – – – – – – – – – – – – – – – – – – – – 0.34 – 0.34 – 0.20) 4.20) 4.87) – – 3.36 (0.93 (5.34) 3.56 (0.01) – – – (0.74 (62.75 (0.39 – 1.01) – (0.87) Balance Balance Transaction Outstanding as Transaction Outstanding as Value on 31-03-2010 Value on 31-03-2010 Cost of management services recovered – CIL Sale of Assets – Chloride Metals – Total Rent and Maintenance Costs – CIL Employee Welfare Expenses – IVL Rights Issue of Shares – IVL Dividend Income – CIL – ABML – Leadage Alloys – Chloride Metals – Espex – Caldyne – Total Technical Assistance Expenses – CEIL Technical Assistance Income – ABML Loans Given – ESPEX – CEIL Motive Power Interest Costs – ESPEX – CEIL Motive Power Interest Income – ESPEX – CEIL Motive Power to Directors (Refer note no.01 (0.02) – (0.08 (0. 31.21) 0.32) 93.30) – – – – 0.12) – (0.09 – 0.12) – – – (0.) ii) Details of transactions entered into with the related parties: Subsidiaries Associate Companies Enterprise/Individuals having direct or indirect control Key Management Personnel (Rs.09 – 0.60 (0.30 (0.01) – – – – – – – – 93. 31.74 (62.01 (0.) Total Balance Transaction Outstanding as Value on 31-03-2010 0.50) 0.30 (0.02) 0.04) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 6.EXIDE INDUSTRIES LIMITED 24.58) – – – (0. NOTES TO ACCOUNTS (Contd.28 crs (Rs.20) 6.37 (5.34 – 0.98 (1.28) 6.04) 2.09) 0.08 (0.20) 4.93 (5.20) 4.39 – 1.63) 0.01 (0.28 crs) was paid for the year 2008-09 and Interim Dividend 2009-10 to Chloride Eastern Limited.43) 2.01) – (0.30) – – – – 0.07) – (2.03 – 0.58) 0.09 – 0.01 (0.03 – 0.09) 0.03 (0.

except for the assets shown in (b) below. if any. depreciation is provided on the revised carrying amount of the assets over its remaining useful life. All other investments are classified as Long-Term investments. as per the requirement of schedule VI of the Companies Act. Washing Machines. b) Based upon their respective useful economic life. Depreciation includes amount written off in respect of leasehold properties over the respective lease period. iii. is less than the residual life as per the books. unless there is other than temporary decline in value thereof. Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with reference to the month of addition/disposal. 2006 and the relevant provisions of the Companies Act.EXIDE INDUSTRIES LIMITED 24. Basis of Accounting The Company prepares its accounts under the Historical Cost Convention modified by revaluation of fixed assets. erection/commissioning expenses etc upto the date the asset is ready for its intended use. The estimated future cash flows are discounted to their present value at the weighted average cost of capital. d) Acquired Goodwill is written off over a period of five years. 98% of the value of fixed assets is being depreciated in the accounts. Accordingly. not exceeding ten years. In case of impairment. Investments in foreign companies are carried at exchange rates prevailing on the date of their acquisition. as determined by the approved valuer. ii) a) Depreciation is provided on straight-line method at the rates and in the manner specified in Schedule XIV of the Companies Act. Long Term Investments are considered at cost. the original cost as written up by the valuer. depreciation is provided at the adjusted higher rates so that the value thereof is written off over the economic life determined by the valuer.) IV. Interest Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Investments Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. moulds and computers to be 2% of the cost as against 5% specified in Section 205 (2)(c) of the Companies Act. d. incidental expenses. taxes. For recognition of Income and expenses. e. The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by the Companies Accounting Standards Rules. However. in respect of certain assets whose residual economic life. c. SIGNIFICANT ACCOUNTING POLICIES a. Dividend from subsidiaries is recognised even if the same are declared after the balance sheet date but pertains to period on or before the date of balance sheet. Mercantile System of Accounting is followed. Dividends Revenue is recognised when the shareholders’ right to receive payment is established by the balance sheet date.83% Computer Hardware 4 24. NOTES TO ACCOUNTS (Contd. Televisions (included in Furniture & Fittings) 6 15. & Transformers 15 6. Revenue Recognition Sale of Goods Revenue from sale of goods including manufactured products is recognised upon passage of title to the customers. Depreciation i) The classification of plant & machinery into continuous and non-continuous process is done as per technical certification and depreciation thereon is provided accordingly. Current Quoted Investments are stated at lower of cost or market rate on individual investment basis. which generally coincides with delivery. and are set off from material costs. Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. 1956. 1956. 58 . b. v. Refrigerators. Fixed Assets Fixed Assets are stated at cost of acquisition inclusive of duties (net of Cenvat). iv. Intangible Assets Research and Development Costs Research costs are expensed as incurred. depreciation on the following assets is provided at a rate higher than those specified in Schedule .80% c) The Company has estimated the residual value of Plant & Machinery. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their ‘Value in use’. Further. is considered in the accounts and the differential amount is transferred to revaluation reserve. f. The accounting policies applied by the Company. Water Coolers.50% Weighing Scales. are consistent with those used in the previous year.XIV of the Companies Act 1956: Class of assets Useful economic Life Rate of Depreciation Air conditioners. in which case adequate provision is made for diminution in the value of investments.83% Motor Vehicles 6 15. 1956. Customs Duty benefits in the form of advance license entitlements are recognised on export of goods.53% Pallet Trucks 10 9. 1956. Any expenditure carried forward is amortised over the period of expected future sales from the related project. The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any indication of impairment based on external/internal factors. In case of revaluation of fixed assets.

Operating lease payments are recognised as an expense in the Profit and Loss Account on a straight-line basis over the lease term. Borrowing Costs Borrowing costs attributable to the acquisition and/or construction of qualifying assets are capitalized as a part of the cost of such assets. Lease income is recognized in the Profit and Loss Account on a straight-line basis over the lease term. Cost is determined on a weighted average basis. l. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year. All direct capital expenditure on expansion are capitalised. upto the date when such assets are ready for their intended use. As regards indirect expenditure on expansion. less estimated costs of completion and to make the sale. g. Net realizable value is the estimated selling price in the ordinary course of business. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Expenditure on new projects and substantial expansion Expenditure directly relating to construction activity are capitalised. by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Indirect expenditure incurred during construction period are capitalised as part of the indirect construction cost to the extent to which the expenditure are indirectly related to construction or are incidental thereto. are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Leases: i) Finance lease: In order to comply with Accounting Standard – 19 Notified by the Companies Accounting Standard Rules. stores and spares are valued at Lower of cost and net realizable value. Inventories i) Raw materials. NOTES TO ACCOUNTS (Contd. if any. Foreign Currency Transactions i) Initial Recognition Foreign currency transactions are recorded in the reporting currency. is deducted from the total of the indirect expenditure. Both direct and indirect expenditure are capitalised only if they increase the value of the asset beyond its original standard of performance. Leased assets capitalised are depreciated over the shorter of the estimated useful life of the asset or the lease term. only that portion is capitalised which represents the marginal increase in such expenditure involved as a result of capital expansion. materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Finance charges are charged directly against income. brokerage etc are recognized immediately in the Profit & Loss Account. ii) Conversion Foreign currency monetary items are reported using the closing rate. 2006 a ) Assets given under a finance lease are recognized as receivable at an amount equal to the net investment in the lease. k. b) Assets acquired under finance leases. which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased items. iii) Exchange Differences Exchange differences arising on the settlement / conversion of monetary items. ii) Work-in-progress and finished goods are valued at Lower of cost and net realizable value. Costs. Cost is determined on a weighted average basis. The principal amount received reduces the net investment in the lease and interest is recognized as revenue. is considered for valuation of finished goods stock lying in the factories as on the balance sheet date. j. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Excise Duty Excise Duty is accounted for at the point of manufacture of goods and accordingly. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Other borrowing costs are charged to Profit and Loss Account. However. are recognised as income or expenses in the year in which they arise. Lease rentals are apportioned between principal and interest as per the IRR method. Other indirect expenditure (including borrowing costs) incurred during the construction period which are not related to the construction activity nor are incidental thereto. Initial direct costs such as legal charges.EXIDE INDUSTRIES LIMITED 24. and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable. ii) Operating leases: a) Assets acquired under Operating Leases represent assets where the lessor effectively retains substantially all the risks and benefits of their ownership. 59 . Income earned during construction period. and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. Cost of finished goods includes excise duty. h. are charged to the Profit and Loss Account. i.) The carrying value of development costs is reviewed for impairment annually when the asset is not yet in use. iv) Forward Exchange Contracts The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. components. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. b) Assets given under operating leases are included in fixed assets. including depreciation are recognized as an expense in the Profit and Loss Account.

v) Pension liability is split into a defined benefit portion and a defined contribution portion as indicated in note no. computed on the basis of past trend of such claims. NOTES TO ACCOUNTS (Contd.235. Provision A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation.011 2008-2009 19. that sufficient future taxable income will be available against which deferred tax asset can be realized. in respect of which a reliable estimate can be made. Current income tax and fringe benefit tax are measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. The contributions towards defined contribution are charged to the Profit and Loss account of the year when the contribution becomes due. Any such writedown is reversed to the extent that it becomes reasonable certain or virtually certain. ii) Gratuity liability and Post employment Medical Benefit liability are defined benefit obligations and are provided for on the basis of an actuarial valuation made at the end of each financial year. p. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. as the case may be. o. deferred and fringe benefit tax. iii) Long term compensated absences are provided for based on an actuarial valuation made at the end of each financial year. Taxation Tax expense comprises of current. Provisions made in terms of AccountingStandard-29. STATISTICAL DATA a. but if material.660. these are disclosed by way of notes. For the purpose of calculating diluted earnings per share. vi) Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.970 2008-2009 22.) m. Installed capacity has been estimated by the Management. V. that sufficient future taxable income will be available. The analysis of geographical segments is based on the areas in which customers of the Company are located. all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Segment reporting Based on the synergies risks and returns associated with business operations and in terms of Accounting Standard – 17. is not furnished. as the case may be. are not discounted to its present value and are determined based on the management estimate required to settle the obligation at the balance sheet date. Installed Capacity 2009-2010 24. Contingent Liabilities No provision is made for liabilities. There are no obligations other than the contribution payable to the respective trusts. which are contingent in nature. The Defined benefit portion is provided for on the basis of an actuarial valuation made at the end of each financial year.909 Notes: Licensed capacity since not required to be given. the Company is predominantly engaged in a single reportable segment of Lead Acid Storage Batteries during the year.EXIDE INDUSTRIES LIMITED 24. The company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain. r. Earning per share Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Product Related Warranty/Guarantee Claims Provision for product related warranty/guarantee costs is based on the claims received upto the year end as well as the management estimates of further liability to be incurred in this regard during the warranty period. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. q. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. CAPACITIES. In situations where the company has unabsorbed depreciation or carry forward tax losses.689. PRODUCTION & STOCKS Unit Storage Batteries Nos. iv) Payments made under the Voluntary Retirement Scheme are charged to the Profit and Loss account. ‘r’. Retirement and other employee benefits i) Retirement Benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. 60 .462. The carrying amount of deferred tax assets are reviewed at each balance sheet date. n. the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.003 Actual Production 2009-2010 21.

5 86.in Crores 5.62 2008-2009 Quantity Value Nos.52 12.2010 Quantity Value Nos. in Crores 2.72 1.10 2.045 – 17.506 – 9.947 Value Mah Rs. in Crores 562.98 40.908 1.48 2.32 28.5 100.424 21. Rs.60 Storage Batteries * Mah denotes Million Ampere Hours Trading Items d.86 470.536 175. Consumption of Raw Materials and components 16.223.96 Percentage 2008-2009 Quantity Value Rs.661.0 2009-2010 g. Rs.0 Value Rs.43 Percentage 14.337 16.96 100.7 100. 19.82 Quantity Nos.77 Lead and Lead Alloy Others f. Mah* Rs.3 2.7 1.899.3 74.45 2008-2009 Quantity Value Nos.215.in Crores 161.574 1. SALE OF FINISHED GOODS 2009 .0 Value Rs.6 100.053. Storage Batteries : Opening Stock : Closing Stock c. in Crores 3.0 Value Percentage Rs.16 61 .00 2008 .02 2. Storage Batteries : Opening Stock : Purchase : Closing Stock e. in Crores 154.90 161.64 71.651 2009-2010 Value Rs.60 85. NOTES TO ACCOUNTS (Contd. STOCK OF FINISHED GOODS Quantity Nos.4 85.20 Value Rs.722.518 2009-2010 Value Rs.949 4.24 34.108.04 2.536 843.in Crores 4.18 488.in Crores 699.053.733 59.210.45 34.753. TRADING ITEMS 54. Value of Raw Materials consumed : Tonnes 2009-2010 Quantity Value Rs.21 2.210. in Crores 174.20 2008-2009 Imported Indigenous 25.475 4.519 1.532.) b.EXIDE INDUSTRIES LIMITED 24.441 80.77 6. Value of Stores and Spares consumed : (excluding amounts charged to other heads) Imported Indigenous Percentage 13. in Crores 633. in Crores 21.60 176.029 3.733 3.576. in Crores 21.223.92 29.2009 Quantity Nos.45 1.

54 107. 16667 Mumbai.954. Firm Registration Number: 301003E Chartered Accountants Per R.19 7.21 0. Income & Expenditure in Foreign Currency Income (on accrual basis) – Export (f. 28 April. 1 390. Ramanathan A. K. Agrawal Partner Membership No.75 0.58 718. Coomer Secretary R.77 82. Kapadia R B Raheja T.in Crores 618. Value of Imports (C. Figures in brackets relate to previous year and the same have been regrouped/rearranged where necessary.b. R.666 31.00 6. S. NOTES TO ACCOUNTS (Contd.666 31. Signatures to Schedules 1 to 24 As per our report of even date.18 5.28 2007-08 2008-09 (interim) The above information include particulars in respect of certain non-resident shareholders for whom dividend warrants were sent to the shareholders’ banks in India. value) – Dividend – Interest – Technical Assistance Fee Expenditure (on actual remittance basis) – Royalty – Technical Assistance Fee – Others Remittance in foreign currencies on account of Dividends to non-resident shareholders (i) Number of Shareholders (ii) Number of Shares held (iii) Net amount of dividend remitted (Rs.56 0.56 120.954. with prior approval of the Reserve Bank of India.EXIDE INDUSTRIES LIMITED 24.56 0.13 0. in Crores 515.00 10. V.41 Rs.30 3.28 2008-09 and 2009-10 (interim) 1 390.82 25.I.34 555. Mukherjee Directors 62 .25 8. BATLIBOI & CO. G.F.67 j.o. basis) Raw Materials and Components Trading Items Spare Parts Capital Goods i.86 – 0. in crores) (iv) Amount remitted for Rs.30 5. K.32 3.05 1.) h. VI. 2010 S.

2008.E. of the 6.680.000 Ordinary Shares of Sri Lankan Rp10 each * Rs.000. 102.379.365.640 Ordinary Shares were held by Exide Industries Limited.104.800 Equity Shares out of Issued Share Capital of 4. G.401. All these shares were acquired effective 12 February. (vii) On 31 March 2010. (ii) On 31 March 2010. K. Mukherjee Mumbai.100 Equity Shares of Rs. 5. 10/. 83. Out of this 3. Coomer A. all the 7.000 equity shares were acquired effective 31 March.000 Ordinary Shares issued by Associated Battery Manufacturers (Ceylon) Limited.100 Equity Shares issued by Chloride Metals Limited were held by Exide Industries Limited and its nominees.50.680.000 * Nil ** S$ 1.896. 1956 Name of Subsidiary Companies Holding Company’s interest Net Aggregate amount of Subsidiary Company’s profit not dealt with in the Company’s Account For the Subsidiary For the Subsidiary Company’s Financial Company’s Financial period ended previous years 31.250 * Nil * Rs. all the 5. 900. 53.000 Ordinary Shares were acquired effective 9 August.004 Ordinary Shares issued by Espex Batteries Limited.200 Shares were acquired effective 25 July 2007. 3.834 *** GBP 12.655.218 Chloride International Limited Caldyne Automatics Limited Chloride Metals Limited Leadage Alloys India Limited Chloride Batteries S.000 Equity Shares issued by Chloride International Limited were held by Exide Industries Limited and its nominees.810 * Rs. (v) On 31 March 2010. 13. 2.640 Ordinary Shares out of issued Share Capital of 6. 10/.336.000 Ordinary Shares Holder of 102.800 Equity Shares were held by Exide Industries Limited and its nominees.504. 2001. 2007 and balance 2.388 * Rs.402 **** SLR 23. All these shares were acquired effective 1 April. All these shares were acquired by Exide Industries Limited from Chloride Eastern Limited of which it was a Subsidiary.2010 * Rs.868 ** S$ Nil *** GBP 5. Out of this.each Holder of entire issued Share Capital of 5.000 Ordinary Shares out of issued Share Capital of 200.100 Shares were acquired effective 1 November.800.000.000 Equity Shares of Rs.386.000 Equity Shares of Rs.400 * Rs.E. Asia Pte Limited were held by Exide Industries Limited.100 ** S$ Nil *** GBP Nil ****SLR 38. 23.640 Net Aggregate amount of Subsidiary Company’s profit dealt with in the Company’s Account For the Subsidiary For the Subsidiary Company’s Financial Company’s Financial period ended previous years 31.386. 10/ each Holder of entire issued Share Capital of 1.each Holder of entire issued Shares Capital of 7.336. R.896.000 shares were issued as “bonus shares” effective 14 July. 1.000 * Rs. 6. All these shares were acquired effective 1 May. 1999 and another 88.163. Kapadia R.980. of the 1. 151. 2008.346.478.980.000 Equity Shares issued by Caldyne Automatics Limited were held by Exide Industries Limited and its nominees.000 Equity Shares issued by Leadage Alloys India Limited. 2.000 Ordinary Shares issued by Chloride Batteries S. 2. (iii) On 31 March 2010.640 shares were acquired effective 11 January. (vi) On 31 March 2010. of the 200.000 Ordinary Shares were held by Exide Industries Limited.763. all the 4.03.823 * Rs.225.187 * Rs.562. 2008.109.870.680. V.000 * Rs. 2010 Secretary Directors 63 . 5.861.848 * Rs.840 ****SLR 84.166 * Rs. Balance 1.311. B.004 Ordinary Shares of GBP 1 each Holder of 3. 10/.2010 * Rs.851.370 ** (S$575. Ramanathan S.each Holder of 2.Out of of this 91. 2004. Asia Pte Limited Espex Batteries Limited Associated Battery Manufacturers (Ceylon) Limited Holder of entire issued Share Capital of 4. Raheja T.945.131) *** GBP 27.346. 50.720 * In Indian rupee ** In Singapore dollars *** IN GBP **** In Sri Lankan Rupee Notes: (i) On 31 March 2010.932.EXIDE INDUSTRIES LIMITED INFORMATION REGARDING SUBSIDIARY COMPANIES PURSUANT TO SECTION 212 OF THE COMPANIES ACT.649 * Rs. of the 4.744 ****SLR 141. 28 April.000 Equity Shares of Rs. (iv) On 31 March 2010.970.800 sharess were acquired effective 12 July. 98. 73.03. 2001 and balance 792.50.868. 2003.

1 0 8 5 0 7 . 5 9 . Ramanathan A.) Turnover including other income Total Expenditure Profit Before Tax Earnings per share (Rs. G. 3 1 8 . REGISTRATION DETAILS Registration No. 8 5 0 7 . 0 . State Code Balance Sheet Date CAPITAL RAISED DURING THE YEAR (Amount in Rs. Mukherjee Directors Mumbai. 28 April. 6 3 2 9 6 1 . 1 3 3 5 .) Total Liabilities Total Assets SOURCES OF FUNDS Paid up Capital Reserves & Surplus Secured Loans Unsecured Loans Deferred Tax Liability APPLICATION OF FUNDS Net Fixed Assets Investments Net Current Assets Misc. crs. 5 6 . 7 1 4 . 2 9 6 1 .) Public Issue Rights Issue Private Placement of Equity Shares (including premium) Bonus Issue POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (Amount in Rs. 1 2 9 9 5 . crs. Expenditure Accumulated Losses PERFORMANCE OF THE COMPANY (Amount in Rs. 6 3 8 5 . 2 1 3 4 . N I I 5 I L L 0 L III. 3 8 0 6 . 1956] I. crs. N N 0 7 1 8 0 4 3 9 I I 0 7 7 2 0 4 7 5 L L IV. B. Raheja T. 2010 S. 5 8 1 0 . 8 9 .) (Basic and diluted) Dividend rate (%) GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY ITEM CODE (ITC CODE) Lead Acid Storage Batteries used for Starting Piston Engines Other Lead Acid Accumulators 1 4 9 1 9 2 1 3 1 0 3 1 0 II. K.EXIDE INDUSTRIES LIMITED BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE [AS PER SCHEDULE VI PART (IV) OF THE COMPANIES ACT. V. Coomer Secretary 64 . N N 5 3 9 . 2 0 R. Kapadia R. 6 1 0 1 2 9 9 0 V.

CONSOLIDATED FINANCIAL STATEMENTS 223 .

For S.K. 2010 Membership No. as well as evaluating the overall financial statement presentation. Our responsibility is to express an opinion on these financial statements based on our audit. 1051. of the profit for the year ended on that date. on a test basis. AGRAWAL Place: Mumbai Partner Date : 28 April. We also did not audit the financial statements of the associate Company for the year ended March 31. These financial statements are the responsibility of Exide Industries Limited’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. BATLIBOI & CO.38 crores for the year. (b) in the case of the consolidated profit and loss account. as at 31st March 2010. evidence supporting the amounts and disclosures in the financial statements. and to the best of our information and according to the explanations given to us.R. Firm Registration Number: 301003E Chartered Accountants per R. An audit also includes assessing the accounting principles used and significant estimates made by the management. whose financial statements reflect total assets of Rs. 16667 224 .02 crores for the year then ended. We conducted our audit in accordance with the auditing standards generally accepted in India.73 crores and cash flows amounting to Rs. 420. 2010 whose share of loss attributable to the Group is Rs 68. We did not audit the financial statements of certain subsidiaries.45 crores as at 31st March 2010. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us. we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the consolidated balance sheet. of the cash flows for the year ended on that date. We report that the consolidated financial statements have been prepared by the Exide Industries Limited’s management in accordance with the requirements of Accounting Standard 21 – Consolidated financial statements and Accounting Standard 23 – Accounting for Investments in Associates in Consolidated Financial Statements notified pursuant to the Companies (Accounting Standards) Rules. and (c) in the case of the consolidated cash flow statement.EXIDE INDUSTRIES LIMITED AUDITOR’S REPORT TO THE BOARD OF DIRECTORS OF EXIDE INDUSTRIES LIMITED ON THE CONSOLIDATED FINANCIAL STATEMENTS OF EXIDE INDUSTRIES LIMITED AND ITS SUBSIDIARIES We have audited the attached consolidated balance sheet of Exide Industries Limited and its subsidiaries (the Group). We believe that our audit provides a reasonable basis for our opinion. and our opinion is based solely on the reports of the other auditors. and also the consolidated profit and loss account and the consolidated cash flow statement for the year ended on that date annexed thereto. total revenue of Rs. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial information of the components. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. of the state of affairs of the Group as at 31st March 2010. 22. 2006. An audit includes examining.

87 220.2010 Rs.62 60.49 1. K.13 530.77 140.14 773.39 345.187.93 836.210.3.00 1. Raheja T.78 618. Loans & Advances Inventories 8 Sundry Debtors 9 Cash and Bank Balances 10 Loans & Advances 11 Less: Current Liabilities & Provisions Current Liabilities Provisions Net Current Assets 1.62 2.05 30.31 693. 28 April.72 876.26 112.79 0.50 1.74 38.61 474.68 111.05 875. Kapadia R.30 1.31 796. 16667 S.391.64 19.50 3 81. R.3.67 624.00 912.415. Agrawal a Partner Membership No.86 298.60 92.187.53 4 5 174.60 1. Firm Registration Number: 301003E Chartered Accountants Per R.77 793.89 992.487.99 418. BATLIBOI & CO.62 1. As per our report of even date.06 2.415. Ramanathan A.14 85.93 736.24 265. 2010 R.04 17. Coomer Secretary Mumbai.93 0.25 12 13 Notes to Accounts and Significant 25 Accounting Policies Schedules 1 to 13 and 25 referred to above form an integral part of the Consolidated Balance Sheet. Mukherjee Directors 225 .25 31. in crores 80.13 36.916. in crores Rs.79 42.87 524. in crores 85.27 361.96 47.52 793. B.2009 Rs. in crores Rs. G.41 275.83 43. S. K. V.EXIDE INDUSTRIES LIMITED CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2010 SCHEDULE SOURCES OF FUNDS Shareholders’ Funds Share Capital Reserves & Surplus Loan Funds Secured Unsecured Minority Interest Deferred Tax Liability (net) 31.831.89 1 2 APPLICATION OF FUNDS Fixed Assets 6 Gross Block Less: Accumulated Depreciation / Amortisation Net Block Add: Capital Work-in-Progress including Capital Advances Investments 7 Deferred Tax Asset (refer note no III ‘m’ ‘ii’ on Schedule 25) Current Assets.

96 271.93 3.04 (81.37 Rs 6.59 3.46 452.27 2. Kapadia R.85 580.987.44 16.17 168.EXIDE INDUSTRIES LIMITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2010 SCHEDULE INCOME Gross Sales 14 Less : Excise Duty (refer note no III ‘d’ on schedule 25) : Sales Tax.31 881. in crores 4. in crores Rs.98 493. Ramanathan A.37 255.18 3. S. 2010 R.53 3.978.87 3.85 271.01 545.44 403.28 139. Coomer Secretary Mumbai. K.38 261.105. R. Value Added Tax & Octroi Net Sales Other Income 15 EXPENDITURE (Increase) / Decrease in Stocks Materials Consumed Purchase of Trading Goods Personnel Costs Expenses Interest and Finance Costs Depreciation/Amortisation PROFIT BEFORE TAX Taxation (net) 2009-2010 Rs.410.24 556.53 2.824.73 300.76 16. B.39 16 17 18 19 20 21 22 PROFIT AFTER TAX Less: Share of Loss of Associate Companies Less: Minority Interest NET PROFIT Balance brought forward PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATIONS General Reserve Interim Dividend Tax on Interim Dividend Proposed Dividend Tax on above Dividend Balance Carried Forward Earning per share .08 471.13 522.00 8. 16667 S.28 157.404.74 11.21 393.59 58. G.18 48. As per our report of even date. in crores Rs.958.10 87.31 191.85 522.44) 2. V.49 79. Agrawal a Partner Membership No. Mukherjee Directors 226 .39 99.27 201.132.71 441.00 5. Firm Registration Number: 301003E Chartered Accountants Per R.52 28.Basic & Diluted (Nominal Value Per Share Re 1) (Refer note no III ‘p’ on Schedule 25) Notes to Accounts and Significant Accounting Policies Schedules 14 to 25 referred to above form an integral part of the Consolidated Profit and Loss Account.004.88 68.97 2.20 32.87 3.15 25 2008-2009 Rs.86 8.73 6. 28 April.45 186.344. K. in crores 4.16 36. Raheja T.87 5.74 132. BATLIBOI & CO.89 294.45 Rs 2.74 71.38 18.69 28.

46) (272.98 0. BATLIBOI & CO.29) 29.00 0.31 (134.13) 529.51 0. S.36) (989. R. Coomer Secretary R.00) 444.63) (77. B.87 584.58 (0. Raheja T. Mukherjee Directors 227 .94 (1.96 646. 28 April.03 116.04 987. K.17 2. in crores 881.72 87.98) 4.05) 60. 2. Firm Registration Number: 301003E Chartered Accountants Per R.76 131. K.59) (179.11 (145.96 30.14* (147.84 – – 1.96 (147.03 0.91) (125. V.39) (45. 16667 Mumbai. S.61) 2.15 (38.62) (24.63) 0.68) – 71.32 (3.20 (319. being the amount available for restricted use.96 (2.53) 0.15 (101.00 – (74.67 38. 1.75 (122. in crores Rs.05) 12.00 0.14 (2.73) 46. G.56) 853.05) (C) 248.43 (324.02 2. Ramanathan A.12) 534.12) (19.97 (0.78) 16.60) 500.53 (0.91 (75.06 crs (Rs.08 26.04) 4.49 – (95.00) 13.15 (793.79 (0.84 2008-2009 Rs.58) 61.79 38. Kapadia R.12 7.96 As per our report of even date. in crores 452.74) (44.75 1.70 crs) lying in Unclaimed Dividend Account.30) 1.79) 201.28 (A) CASH FLOW FROM OPERATING ACTIVITIES: Net Profit before tax Adjustment for : Depreciation Profit on Fixed Assets sold / discarded Loss on Fixed Assets sold / discarded Profit on sale of Investments Provision for Doubtful Debts Provision/(Recovery) for Diminution in Value in Investments Provision/(Recovery) for Doubtful Loans and Advances Dividend Income Interest Expense Interest Income Unrealised (Gain) / Loss on Foreign Exchange Operating profit before working capital changes (Increase) / Decrease in Sundry Debtors (net of provision) (Increase) / Decrease in Inventories (Increase) / Decrease in Loans & Advances Increase/ (Decrease) in Current Liabilities Cash generation from operations Direct Taxes Paid (net of refund) Net Cash from operating activities 106.29 (11. 2010 # as disclosed in Schedule 10 * Includes Rs.00) 70.02 5.EXIDE INDUSTRIES LIMITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2010 2009-2010 Rs. in crores Rs. Agrawal a Partner Membership No.01) 0.51 (B) CASH FLOW FROM INVESTING ACTIVITIES: Purchase of Fixed Assets Sale of Fixed Assets Sale of Shares Acquisition of Shares Purchase of Mutual Funds Sale of Mutual Funds Interest Received Dividend received Net Cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from Long Term Borrowings Repayment of Long Term Borrowings Net increase / (decrease) in other borrowings Net Proceeds from issue of Shares (including Share Premium) Dividends Paid (including tax) Interest Paid Net Cash used in financing activities Net increase / (decrease) in cash and cash equivalents Effect of Foreign Currency Translation Cash and cash equivalents as at 1 April 2009 # Cash and cash equivalents as at 31 March 2010 # (130.

20 3.46* Rs.2010 Rs. in Crores Rs.71 – 0. in Crores 100.09 1.37 186.77 255. Australia Foreign Currency Translation Reserve Profit & Loss Account Balance * Represents share of loss in the associate company.50 5.00 – 0.000 shares issued for consideration other than cash and 541.13 1.00 80.31 220.35 6. 2.000.82 0. RESERVES & SURPLUS Revaluation Reserve – Balance as per Last Account Add : On revaluation of assets during the year Less : Adjustment towards assets sold / discarded Less : Transfer to Depreciation Account Securities Premium Account Balance as per Last Account Add : Amount received on issue of shares Less : Shares Issue Expenses Adjusted (Refer Note no III ‘o’ on Schedule 25) General Reserve Balance as per Last Account Add : Transfer from Profit & Loss Account Less : Issue of Bonus Shares Capital Reserve Balance as per Last Account Add : Arisen on issue of Bonus Shares by Caldyne Automatics Add : Share of loss in CEIL Motive Power Pty Limited.00 1 31. 3. Subscribed and paid up * 850. SHARE CAPITAL Authorised 1.00 100. in Crores 48.2009 45.81 213.16 425.13 11.46 100.2010 Rs. in Crores 100.3.46 120. HDFC Bank Kotak Mahindra Bank Overdraft from Scheduled banks Par Value Rs.95 609.50 9.05 28.A.64 81.831. LOAN FUNDS SECURED Term Loans – Citi Bank N.59 1.469.14 4.80 2.00 85.89 (a) (b) (c) (d) – 4.07 609.85 912.000.2009 Rs.35 4. 1 31.16 51.84 168.80 1.000.3.3.77 5.350.75 213.00 31.20 1.00 100.18 – 5.16 534.71 864.3. investment in which was fully provided for.80 2.60 100.35 – – 31.000) Equity Shares fully paid up * includes 1.77 228 .16 – – 213.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS AS AT 31ST MARCH 2010 1.000 (800.000. in Crores Rs. in Crores 51.96 76.59 738.000 Equity Shares Issued.580 shares issued as fully paid up bonus shares by capitalisation of Securities Premium and Capital & Revenue Reserves.

(b) Secured by hypothecation of battery breaking machine of Chloride Metals Limited (c) Secured by vehicle / equipment purchased under the facility.44 2.67 62.50 – – 1.391. b.41 Rs.03. in Crores Rs.26 7.47 crs (Rs 119.05 908. DEFERRED TAX LIABILITY (NET) Balance as per Last Account Add / (Less): Deferred Tax Liability / (Asset) for the year (Refer note no III ‘ m’ on Schedule 25) 6.68 21.03 693.391.23 0.14 196.4. Maharashtra Term loan from Bank of America NA Term loan from Standard Chartered Bank * Includes repayable within one year Rs.50 44.88 – – – – – – – – – 47.2010 Note: Minority interest represents 49% (49%) of equity of Expex Batteries Ltd.487.85 47. 53.97 crs) in case of certain subsidiaries are further secured by a charge on their respective immovable properties.72 45.25 0.71 6.78 Rs.77 crs (Rs.2010 As at 1.77 793.56 0.14 47.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS AS AT 31ST MARCH 2010 31.03.82 1.54 1.83 43.59 90.79 42.95 5.93 836.2010 Rs.40 0.82 2.51 527.50%) of Associated Battery Manufacturers (Ceylon) Limited and 49% (49%) of Leadage Alloys India Ltd.64 2.25 793.04 UNSECURED Sales tax loan from Small Industries Promotion Council of Tamilnadu Sales tax loan from Small Industries.77 crs) are pending execution.13 0.67 37.49 172.72 0. in Crores Rs. The borrowings of Rs 76.00 6.72 16.15 112.74 173. (d) Secured by hypothecation of stocks & book debts.57 17.13 0. Includes Trade Marks. in Crores 4.31 1.00 – 92.2009 Additions Deductions Subsidiary Rs.93 3.85 (a) – – – 45.83 618.49 17. in Crores Rs. FIXED ASSETS GROSS BLOCK Cost/Valuation Additions on as at 1. in Crores 64. 26.99 5. Moulds and other movable assets of EIL located at its Hosur factory.71 773.3.3.05 9.53 * 174. both present and future.89 25.84 7.68 16.45 1. in Crores 11.41 16.13 31.52 618.25 10.2009 acquisition of a Subsidiary Goodwill Land Freehold Leasehold Buildings Plant & Machinery Moulds Furniture & Fittings Motor Vehicles Computers Total Previous year’s Total Capital Work-inprogress (g) Rs.31 61.16 227.37 (d) 67.64 19. in Crores 65.55 a.86 439.26 3. in Crores – – 0.19 2.25 17. in Crores Rs.69 16. in Crores 47.28 13.16 234.78 1.91 – 9.2009 Rs.08 20. in Crores 47.71 50.50% (38.2010 31.62 Rs.4.76 14.76 9.60 (6.61 30.03.66 11.3.02 5.2010 31.35 – – 2.80 0.58 0.33 crs (Rs.27 75.35 453.58 Rs.11) 43.01 36.72 3.11 crs) Securities (a) Secured by hypothecation of Plant and Machinery. 3.14 566.28 1.25 2.49 ACCUMULATED DEPRECIATION / AMORTISATION NET VALUE Cost/Valuation Addition on Depreciation/ Less : On Sales/ As at As at As at as at 31.91 6.. in Crores Rs.24 5.62 49.27 361.92 45.177.57 82. 38.89 65.42 53. in Crores – 3.03. 4. in Crores Rs.2009 acquisition of a Amortisation Adjustments 31. MINORITY INTEREST Balance of equity as on the acquisition date Add: On acquisition of Leadage Alloys India Limited Add: Movement in equity from acquisition date to 31.65 1.77 10. in Crores Rs.81 110.98 99.71 25.86 (c) 981. 229 .08 – 1.08 17. in Crores Rs.68 1.17 – – – – – – – – – 1.39 14.99 3. 5.61 – 25. in Crores Rs.19 469. 3. in Crores 3. Patents and other intangibles. Conveyance deeds for certain immovable properties valued at Rs.99 20.12 140.35 44.39 – 2.13 60.78 Rs.25 20.00 22.

94 crs (Rs 154. Australia Others : Arkay Energy (Rameswarm) Limited Haldia Integrated Development Agency Ltd.27 – 531. 1/2% Debentures 5% Non-redeemable Registered Debentures 5% Non-redeemable Registered Debentures The Bengal Chamber of Commerce & Industry 6 1/2% Debenture Investment in Property Treasury Bill Quoted Fully Paid up Equity Shares Hathway Cable and Datacom Limited (Aggregate Market Value Rs 22. e.66. Long Term Unquoted Government Securities (Lodged as Security Deposit with various authorities) Fully paid up Equity Shares ING VYSYA Life Insurance Company Limited Less: Post Acquisition loss CEIL Motive Power Pty Ltd.94 crs) towards Goodwill.01 45 1 1 2 100 6.30 275. Includes assets in transit c.10 crs being the cost of shares in Co-operative Housing Societies.61 crs).. The details of fixed assets revalued have been given below: Name of the Company Year of Revaluation Assets revalued EIL 1991 and 1999 Land.3.3. Building and Plant & Machinery CBSEA 1992 Land. additional depreciation for the year on revalued assets has been appropriated from the Revaluation Reserve. are trade investments ** Includes 10.93 * 876.31 1092566 (–) Rs 10 . Building and Plant & Machinery ABML 1990/1991 Land and Building CML 2008 Land.000) – (26) .40 26.01 Rs. 50.70 0.02 crs.000) 500. Browns Group Motels Limited Fully paid up Debentures Woodlands Hospital and Medical Research Centre Ltd.(10400) Sri Lankan Rp 10 .500 Shares pending allotment as at Balance Sheet date . f. Building and Plant & Machinery Leadage 2008 Land.60 Note: All the above investments. Estimated outstanding commitments for Capital Expenditure Rs 69. INVESTMENTS No.000.67 Crores) Current .46 244. except those marked with an asterisk.07 218.62 Market Value 55.000 in each case. 1.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS AS AT 31ST MARCH 2010 Includes Rs 0.01* 0.92 –# 0.741.64 Market Value 625.93 Cost 55.34 crores (Rs Nil) being accelerated depreciation on certain buildings not in use in EIL.22 – – 602.000 – *^ – *^ – *^ – *^ 0.500 1.000 20000 Rs 10 625.Quoted Browns Beach Hotel Asia Capital Limited Units of Mutual Funds (Refer Note no III ‘r’ on Schedule 25) Aggregate Value of Investment Quoted Unquoted Face Value per Share/ Debenture 31. 10 Rs.2009 Rs.2010 Rs. has been transferred to Revaluation Reserve.01 613.79 – – – – 0. # Net of Provision for diminution in value of investments Rs.31 220.73 381. Building and Plant & Machinery Caldyne 2006 Land.000 6. 10 Srilankan Rp10 – 0. ^ Figures being less than Rs.48 – – 0. d. As in the previous years.01 –^ 55.15 247. in Crores 31.50 0.41. Includes Rs 3. has not been disclosed 230 .(700. 7.(11000) Sri Lankan Rp 5 Cost 629. in Crores 0.99 313. g.86 crs (Rs 23.500** (520.45 * 2.50 0.since alloted and Rs 154. Building and Plant & Machinery The revaluation was carried out by approved valuers and the surplus arising thereon.

62 * 17.51 2. in Crores Rs.05 22.13 11.52 141.08 44.3.74 17.21 1.91 161.92 48.44 624.3.06 14.90 85.50 4.05 8.23 30.08 crs.91 10.12 14. considered good) Debts over six months Other Debts * Net of doubtful debts fully provided for 10.75 36.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS AS AT 31ST MARCH 2010 31.96 21.14 30.27 2.71 9.10 16. SUNDRY DEBTORS (Unsecured.14 0.73 3.71 47.69 13.32 1.13 231 .30 47.61 25.36 3. 2.02 252. Spare Parts.32 418.34 7. (Rs. in Crores Rs.69 112. Refunds receivable and Tax deducted at source (net of provisions) Balances with Customs.46 16.01 0.06 0.46 53. Considered good) Loans Interest Accrued on loans Advances recoverable in cash or in kind or for value to be received or pending adjustments Advance Tax.24 8.88 33.60 – 796.01 – 43.2009 Rs.34 197.30 369.23 5. in Crores 14.2010 Rs.52 * 290. in Crores 13.83 140. Sales Tax & Excise Authorities Deposits .57 25. LOANS AND ADVANCES (Unsecured.26 14.05 190.68 16.23 12. 1.75 29.96 0. CURRENT LIABILITIES Sundry Creditors – Due to Micro and Small enterprises – Due to others Other Liabilities Acceptances Advances from Customers Investor Education and Protection Fund (Refer note no III ‘I’ on Schedule 25) Interest accrued but not due on Loans 13.53 298.81 65.17 111. PROVISIONS Employee Benefits Product related Warranty / Guarantees (Refer note no III ‘n’ on Schedule 25) Taxation (net of Advance Tax) Proposed Dividend Tax on Proposed Dividend 175. CASH AND BANK BALANCES Cash and Cheques in hand (including Remittances in transit) Balances with banks on: Current Account Fixed Deposit Account Unpaid Dividend Account 11.22 38. Loose Tools etc.25 1.73 6.93 8.29 317.41 20.05 3.29 178.58 crs) 12.Others * Net of Provision for Doubtful Loans & Advances Rs.86 31. INVENTORIES (At Lower of Cost or Net Realisable Value) Stores.69 10.05 524.41 0.27 0.72 265.74 6.08 16.48 484. Raw Materials and Components @ Work-in-Progress Finished Goods @ Add: Excise Duty Trading Goods Assets held for Sale @ Includes materials in transit/Bonded warehouse or lying with third parties 9.67 2.

28 2.38 crs.91 141.17 22.41 29. in Crores Rs.63 98. Procurement expenses etc.41 29.06 4. MATERIALS CONSUMED Raw Materials.44 23.79 315.91 141.31 1.96 2.80 2.11 178.36 17.78 0.824.41 311.18 0.183.685.322.73 – 2.79 12.00 140.53 178.205.28 201. PERSONNEL COSTS Salaries.132. (Rs. UPS.74 209.08 232 .88 6.02 0. Components.344.47 9.501.30 140. 1.09 30.96 11.) 15. 8.06 3. (INCREASE) / DECREASE IN STOCKS Opening Stocks Work-in-Progress Finished Goods Trading Goods Closing Stocks Work-in-Progress Finished Goods Trading Goods Excise Duty * Represents Excise duty on (Increase) / decrease of Finished goods inventory 17.898.95 3.83 2.132.44 5.66 261.74 2. OTHER INCOME Dividend from Current Non-Trade Investments Profit on Sale of Investments Profit on Fixed assets sold Bad debts recovered Sundry Income 16. Solar Lanterns and Homelights Lead and lead Alloy Others * Net of Exchange Gain Rs.87 132.44 * 17.01 2008-09 Rs.79 369. in Crores Rs.70 crs.60 390.87 4. in Crores 14. etc.73 190.42 152.25 2.004.09 4.34 175.59 11.44) 132.41 29.05 25. Wages & Bonus Contribution to Provident & Other Funds (net) Welfare Expenses 3.83 2.18) * (81. and after adjusting Cenvat Credits) Less: Closing Stock (Refer Note no III ‘j’ on Schedule 25) 18.05 284. etc: Opening Stock Add: Purchases (including Processing charges.41 311.73 7.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS AS AT 31ST MARCH 2010 2009-10 Rs.82 15. SALES Storage Batteries Trading Items Batteries Battery chargers.28 160.25 135.17 2. in Crores 4.82 99.24 2.50 8.004.53 0.99 (2.63 1.

99 120.28 6.02 23. (Rs.83 129.64 4.95 6. in Crores 35.80 0.51 5.01 7.84 5.89 (2.72 crs.65 5.29 66. (including Tax deducted at source Rs.05 58.88 – – 25.53 75.01 58.35 – – 0.42 2.10 31.94 0.68 16.05 ) 2.82 59.09 – 0.85 4.45 4.16 13.57 crs.98 1. in Crores Rs.11 6.83 4.20 0.58 1.96 19.41 95.74 87.12 24.01 (1.23 1.29 0.12 16.45 471.95 152.27 2. INTEREST AND FINANCE COST Interest on: Term Loans Working Capital Borrowings Fund Mobilisation Costs Less: Interest Received on loans.98 8.76 556.68 0.78 3.31 2008-2009 Rs.89 2.56 * 16.54 ) 1. in Crores 43.06 crs.) 21. 13.88 3. in Crores Rs.44 13.02 0.14 8.97 233 . EXPENSES Stores & Spare Parts consumed Power & Fuel Battery Charging / Battery Assembly expenses Repairs & Maintenance Buildings Plant & Machinery Computers & Softwares Others Rent & Hire Charges (net) Rates & Taxes Insurance Commission Royalty and Technical Aid Fees Publicity and Sales Promotion Freight & Forwarding (net) Selling Expenses (Schedule 23) Travelling & Conveyance Bank Charges Communication Costs Donations Auditors’ Remuneration (refer note no III ‘k’ on schedule 25) Directors’ Fees Loss on Fixed assets sold / discarded Bad Debts written off Less : Adjusted against provision Loans and Advances written off Less: Adjusted against provision Loss on Disposal of Long term Trade Investment Less: Adjusted against provision Provision for Doubtful Debts Provision for Doubtful Loans and Advances Provision for Diminution in value of Investment Miscellaneous Expenses (Schedule 24) 20.76 5. 3.63 43.83 0.14 (5.01 ) 5.81 71.17 – – – 2.86 2. DEPRECIATION/AMORTISATION Charge for the year Less: Transfer from Revaluation Reserve 37.26 3.02 0.21 (0.03 0. 0.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS AS AT 31ST MARCH 2010 2009-2010 Rs.78 0.97 19.13 5. (Loss Rs.74 10.04 ) – – 90.28 6. 0.86 44.66 0.71 11.63 5.11 59.07 crs.10 11.03 29. deposits etc.59 14.) * Net of exchange Gain Rs.79 1.

50 43.16 19.69 32. (Refer Note no III ‘m’ on Schedule 25) 23.21 6. SELLING EXPENSES Testing Charge Liquidated Damages Cash Discounts After Sales Services C & F Expenses Installation Costs 24.96 3.03 0.18 1. in Crores – 10.03 0.54 4. (Rs. DIRECTORS’ REMUNERATION Salary Contribution to Provident and other Funds Cost of other benefits Commission Sitting Fees 1.47 0.21 crs).51 0. MISCELLANEOUS EXPENSES Motor Vehicle Running Expenses Consultancy & Services outsourced Security Service Charges General Expenses Legal Expenses Printing & Stationery TQM Expenses CSR Expenses Pollution Control Expenses 25. in Crores – 10. in Crores 6.50 crs).40 66.91 4.02 0.96 0.13 1.41 1.30 0.41 crs. (Rs.17 0.89 0.17 0. in Crores 22.23 – 300. 1.85 2008-2009 Rs.45 Rs.28 23.01 9. 1.69 1.49 33.87 Not ascertainable Rs. in Crores 155.51 25. TAXATION Provision for Income Tax Provision for Wealth Tax Provision for Fringe Benefit Tax * net of Deferred Tax release Rs.16 4.32 1.46 0.81 0.46 0.33 1.23 1.70 157.0.89 234 .51 14. NOTES TO ACCOUNTS I.62 * 0.30 10.14 crs.33 0.23 58.56 0.11 300.22 7. an appeal whereby is pending in Hon’ble Bombay High Court II.85 16.00 0.48 14.38 Not ascertainable Rs.44 4. 6.68 – 0.EXIDE INDUSTRIES LIMITED SCHEDULES FORMING PART OF THE CONSOLIDATED ACCOUNTS AS AT 31ST MARCH 2010 2009-2010 Rs.05 3.03 10.76 Rs. in Crores 6.67 1.02 0.77 0. CONTINGENCIES Contingent liabilities not provided for in respect of – Indemnity for Letters of Credit – Outstanding Bank Guarantees / Indemnity Bonds – Sales Tax demands – Excise Duty demands – Income Tax demands – Other claims being disputed by the Company – Share of contingent liabilities of Associate Companies – Claim from a landlord.92 4.27 1. and provision for earlier years Rs.75 0.65 0.64 1.

has been sold during the year. v. iv. Asia Pte Ltd. The excess / shortfall of cost to the company of its investments in the associates is disclosed in the financial statements as goodwill / capital reserve.) Espex Batteries Limited (ESPEX) Associated Battery Manufacturers (Ceylon) Ltd. 235 . after fully eliminating intra group balances. directly or indirectly through subsidiaries. all non-fully owned subsidiaries. intra group transactions and any unrealised profit/loss included therein. (LAIL) India India Singapore UK Sri Lanka India India 100 100 100 51 61. 2006 has been followed by the group as below – i.EXIDE INDUSTRIES LIMITED 25. to the extent possible. Investments in Associates Accounting Standard – 23 – “Accounting for investments in Associates in Consolidated Financial Statements” notified by the Companies Accounting Standard Rules.E. Associated Battery Manufacturers (Ceylon) Limited and Leadage Alloys India Limited. liabilities. The subsidiary companies considered in the financial statements are as follows: Country of % of Voting Name Incorporation power as on March 31. Foreign Exchange fluctuations on conversion of the accounts of EIL’s foreign subsidiaries have been taken to “Foreign Currency Translation Reserve” (Arising on Consolidation). Ltd. The investments in associates are accounted for under the ‘Equity Method’. The excess / shortfall of cost to the company of its investments in the subsidiary companies is recognised in the financial statements as goodwill / capital reserve. Principles of consolidation of financial statements: The consolidated financial statements which relate to Exide Industries Ltd. the minority interest has been computed in respect of Espex Batteries Limited. 2010 50 v. in which EIL holds. An associate company is a company. ii.. iii. (CBSEA) & its wholly owned subsidiary (Exide Batteries Pvt.) Leadage Alloys India Ltd. not being a subsidiary. Investment in an associate CEIL Motive Power Pty Ltd.50 100 51 b. in the same manner as the company’s separate financial statements. 20% or more of the voting power of the investee. have been prepared on the following basis i. The goodwill amount so arisen is tested for impairment at each year end. income and expenditure. ii. (CML) (Formerly Tandon Metals Ltd. Country of Incorporation India % of Voting power as on March 31. iv. as Associate Company till last year and fully provided for. The consolidated financial statements have been prepared using uniform accounting policies for like transactions and are presented. as the case may be. NOTES TO ACCOUNTS (Contd. iii. 2010 Chloride International Limited (CIL) Caldyne Automatics Ltd (CALDYNE) Chloride Batteries S. (ABML) Chloride Metals Ltd. The financial statements of the company and its subsidiaries are consolidated on a line-by-line basis by adding together the book values of like items of assets. The ‘associate’ considered in the financial statements are as follows: Name ING Vysya Life Insurance Company Ltd.) III. Minority Interest In terms of Accounting Standard 21. OTHERS a. (EIL) and its subsidiary companies.

) being the amounts allocated to other heads of expenses.52 crs) towards lease of residential apartments.25 crs (Rs. The future minimum lease amounts under non-cancellable operating lease in case of CBSEA and ESPEX are payable as follows: Rs. depreciation for the year is higher by Rs. No.07 2008-2009 0. being temporary in nature. in crs. 11. g. 236 . EIL also has a rupee swap to fully hedge the foreign currency borrowing of Rs.71 i. there is no escalation clause and no other restrictions imposed by the lease arrangements. 0.07 18.69 crs and consequently the profit before tax is lower by the like amount.43 0. settled during the year by the Company and discounts.) paid on batteries issued towards warranty claims. 0. trade incentives etc (after adjustment of excess provision written back amounting to Rs.37 crs. 0. Generally.66 31. in the value of certain long term unquoted/quoted investments as on the Balance Sheet date. 0.29 crs. Operating Lease Commitments EIL has paid Rs.3. The following assets and liabilities in foreign currencies as at the Balance Sheet Date are not hedged: Rs.43 7. The asset was later scrapped during the year. NOTES TO ACCOUNTS (Contd.07 19.12 crs). Excise Duty includes Rs.) c.72 94.71 0. Stores and Spares consumed is exclusive of Rs.3. Diminution. 8.EXIDE INDUSTRIES LIMITED 25.90 0.83 crs. in crs.49 crs (Rs.2009 19. renewable by mutual agreement. Accordingly. These are cancellable leases.69 d.45 0.96 crs. Sr. (Rs. 72. There are no sub-leases.36 1.38 1. Particulars (i) (ii) (iii) (iv) (v) Trade Receivable Loans given to an overseas subsidiaries Investments in overseas subsidiaries and associates Dividend and Technical fees receivable Trade Payables 31.49 7. Because of this.93 crs). the company has depreciated the entire balance amount of its net book value in its books. For CML. has not been provided. Sales are net of price adjustments for earlier years. 0. the management has during the year reviewed the balance life of the Stationary furnace plant based on technical estimates and has determined that there is no balance useful life for the same. 9.52 56. 2009-2010 Not later than one financial year Later than one financial year but not later than five financial years Later than five financial years h. (Rs. f.2010 23. 2. based on the net worth as per the latest audited accounts of the relevant company or market value. e.

54 60.2010 Rs. Details of Auditor’s remuneration:2009-10 (Rs. (Includes Exchange Loss Rs. 1.18 crs. NOTES TO ACCOUNTS (Contd.03 0.) Statutory Audit Limited Reviews Tax Audit In other capacity for certificates etc Out of Pocket Expenses Total l.58 0.95 67.16 31.87 73.59 crs.).03 1.07 0.64 crs. in Crs.03.62 12.2009 Rs. 37. Materials consumed (Schedule 16) includes warranty costs Rs.94 2008-09 (Rs.73 m.29 7.54 0. CBSEA and LAIL as on 31 March 2010 is as follows: 31.40.16 12.4.44 43.) j. 59. i) The break-up of Consolidated Deferred Tax liability of EIL.18 0.08 4. in crs) 0.06 2008-2009 Rs.). Deferred Tax Assets i) Expenses allowable against taxable income In future years ii) Expenses disallowed in earlier assessments which are being contested Total Net Deferred Tax Liability 65. 28.83 k. export incentives Rs. 0.10 crs.18. in crs.70 0. in crs. (Rs.04 crs.04 0.5.03 0. nil).81 crs. Unclaimed Dividend Unclaimed Public Deposit Total 2.22 0.EXIDE INDUSTRIES LIMITED 25.93 8. Details of amount payable (when due) to Investor Education & Protection Fund are as follows (Schedule – 12) : 2009-2010 Rs. in Crs. in crs.46 12.64 crs.28 24. (Rs.03.03 0. 1961 but not booked in current year Total B.98 7. (Rs. CML.) and is net of exchange fluctuation Gain Rs. A.0. Caldyne.05 0. and purchase tax set-off Rs.06 – 2. Deferred Tax Liability i) Timing Difference in depreciable assets ii) Expenses claimed as deduction as per Income Tax Act.49 237 .

in crs.) 238 . Deferred Tax Assets on Expenses allowable against taxable income in future years Net Deferred Tax (Asset) Based on a recent ruling of The Hon’ble Supreme Court in another case and also its tax assessment order for an earlier year.39.61 39.90 to generate funds for its capital expenditure.18.77 (0.39 Weighted average number of Equity Shares (No.27 crores).36 2008-2009 53. 2009-2010 Balance as on 1st April 2009 Add: Amount created during the year Less: Product related warranties issued for the year Effect of Foreign Exchange Movements Balance as on 31st March 2010 o. in crs. the Company has temporarily invested the funds in mutual funds after adjusting share issue expenses of Rs 9.) (Rs. the Company has treated provision for warranty as an allowable expenditure while estimating the liability for IncomeTax for the year and has also written back excess tax liabilities of Rs. The total sum received aggregated to Rs.31) A.000 1.30) 31.15 2008-2009 191.2009 Rs.50 crores (including Rs.58 0.106.) Face Value of Shares Basic and diluted earning per share (Re.89 (0. 539.61 p. 0.17 0. The movements in ‘Provision for Product Related Warranty / Guarantee’ Account during the year are as follows : Rs.58 0.64 44.00 2.806 1.59 crores (including Auditor’s remuneration of Rs.49 80. n. NOTES TO ACCOUNTS (Contd.88 (0. 0. During the year. Pending utilization of the money for the purposes mentioned above. 0.14 52.EXIDE INDUSTRIES LIMITED 25.03.03. EIL has issued 5 crores shares of Re 1 each to Qualified Institutional Buyers (QIBs) at a premium of Rs.2010 Rs.00. Details for calculation of basic and diluted earning per share are as under: 2009-2010 Net Profit as per Profit & Loss Account (Rs.50 crores towards Securities premium).27 crores for past years arising due to the above. 17. crs.00 6. in crs.) ii) The break-up of Deferred Tax Asset of ABML and CBSEA as on 31 March 2010 is as follows: 31.52 80.32 53. 53.) 493.32 52.534.00.09 crores and reversed the corresponding deferred tax asset of Rs. Deferred Tax Liability on Timing Difference in depreciable assets B.12) 48. acquisitions and for general corporate purposes.27.

05 157.02 59.85 511.77 0.08 51.405.43 239 .) Business segment: Lead acid Storage Batteries 2009-10 2008-09 Others 2009-10 2008-09 Consolidated Total 2009-10 2008-09 REVENUE External sales (Net) and Other income RESULT Segment result in operating Profit Interest expenses Interest income Income taxes Net profit after tax and before minority interest and share of loss of Associate Company OTHER INFORMATION Total Segment assets Total Segment liabilities Capital expenditures Depreciation 3.40 5.39 190.04 3.28 135.13 1. Lead Acid Storage batteries being the only reportable segment.95 169.02 0.83 8.74 828.64 3.35 897. Carrying amount of segment assets 31. in crs.70 21.924. in crs. India Overseas 4499.64 Addition to fixed assets and intangible assets 2009-2010 134.74 101. BUSINESS SEGMENT The group’s business is organized in three primary business segments.82 284.14 12.11 1945.53 1.40 44.3.97 GEOGRAPHICAL SEGMENTS EIL and its subsidiaries primarily operate in India and therefore.24 890. ‘Lead Acid Storage Batteries’.19 41.34 2924.31 0.79 11.53 114.42 277. ‘Lead Smelting’ and Solar Lantern & Homelights.40 18.968.64 934.06 2.48 932.79 82.30 325.92 169.48 0.94 Assets and additions to tangible and intangible fixed assets by geographical area: The following table shows the carrying amount of segment assets and additions by geographical area in which assets are located: Rs. segment information for the group is as under: (Rs.03 489.89 539.30 2008-2009 168.53 8.07 327.410.14 117.90 70.39 1.94 8.14 2008-2009 Rs.640. in crs.34 3.78 580.09 741.EXIDE INDUSTRIES LIMITED 25.79 0.65 1.2009 1831.43 71.987. the analysis of geographical segments is demarcated into its Indian and Overseas operations as under: Revenue – Gross Sales 2009-2010 Rs.2010 India Overseas 2807.30 87.70 285.48 0. NOTES TO ACCOUNTS (Contd.17 135.51 4. 4016.68 300.945.82 21.69 4.58 113.3.844.39 160.53 294.26 23.88 152.88 2.54 69.48 31.) q.83 16.17 5. in crs.

321. These benefits are unfunded.529.26 (420.775.401. EIL provides certain Post-Retirement Medical Benefits (PRMB) to the employees qualifying for such benefits under the scheme as at 31st March 2006.060.401.10) 50.002. In additions to the details furnished in Schedule 7.28 (50.74 (–) 2.66 (–) 34.49 (–) 5.151.168.004.33 (–) 9.030.584.846.971.45 (5.04 (–) 4. compensated absences and other post-employment benefit plans EIL has a defined benefit gratuity plan.068. The following table summaries the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plans.04 (–) 4.66) 14.502. Unit Purchased 450. This is an unfunded plan. EIL also extends benefit of compensated absences to the employees.039.73) 50. 240 .846.151.592. is in nature of a defined benefit plan.33 (–) 9.EXIDE INDUSTRIES LIMITED 25.440.989.592.50 (9.846. a part of the liability whereof upto 31st March 2003.168. NOTES TO ACCOUNTS (Contd.502.17 (50.16 (–) 25.971.030. From 1 April 2003 onwards the pension liability remains as a defined contribution liability which is funded annually with an insurance company.95) Units Sold 450.529.606.004.039.989.606.440.78) 210.28 (50.74 (–) 2.16 (–) 25.) r.31 (–) 49.994. the following investments in Mutual funds units were purchased and sold during the year by EIL: Name of the fund Reliance Mutual Fund HDFC Mutual Fund ING Vysya Mutual Fund IDFC Mutual Fund ICICI Prudential Mutual Fund Kotak Mutual Fund Can Rebeco Mutual Fund Tata Mutual Fund Bharti Axa Mutual Fund SBI Mutual Fund Birla Mutual Fund DSP Mutual Fund s. and accordingly the number of beneficiaries is frozen on that date.584.49 (–) 5.859.66 (–) 34.994.002.78) 210.17 (50.26 (420. The scheme is funded with an insurance company.66) 14. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of the Payment of gratuity Act.001.45 (5.088. 1972.994.068.73) 50.895.10) 50.001.859. whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation.088.994.775.95) Gratuity.50 (9.817.817.31 (–) 49.895.846. EIL has a pension plan.060.321.

Total Expense II.01 3. Change in Fair Value of Plan Assets during the year 1. Plan assets at the end of the year 7. Expenses recognised in the statement of Profit & Loss Account 1. Plan assets at the beginning of the year 2. in crs.11 0.08 5. Actuarial (Gains) / Losses 6.02 1.22 2. Interest Cost 4.68 0.06 0.07 0.80 2. Benefits Paid 5.53 3.50 (0.07 0.42 3.66 3.75 1.17 0.11 0.02 12. Net Asset / (Liability) recognised in the Balance Sheet 1.58 – 0.97 0.47) 2. Actuarial (Gains) / Losses 6. Net Asset / (Liability) III. Fair Value of Plan Assets 3.29) 0.04 0. Present Value of Defined Benefit Obligation at the end of the year IV.17 29.30 0.05 37.68 0.52 6.16 – 0.84 0.46 241 .42 9.11 23.83 2.83 2.07 4.42 12.) Rs.50 9.67 – 0.82 2.53 0.10 0.59 0. Expected Return on plan assets 4.20 12.88) 9..53 0.EXIDE INDUSTRIES LIMITED 25.01 2.47 0. NOTES TO ACCOUNTS (Contd.84 0.53 3.47 – (2. Current Service Cost 2.75 1.42 – 0.30 – – 0.35 0.51 8.54 9.17 – 0.97 0.42 2.24 12. Actual Benefits Paid 5.53 1.03 0.11 0.66 (0.87 7.11 – (3.07 4.59 2.55 7. For the year ended 31st March 2010 Rs. Present Value of Defined Benefit Obligation 2. Actual return on Plan Assets 29.59 0.54 36.88 – 0.50 2.75 1.54) 0.22 0.51 29.50 2.10 0.08 4.87 0.43 0. Interest Cost 3. Present Value of Defined Benefit Obligation at the beginning of the year 2. Contribution by employer 4.10 – – – 29.01 1.11 2.16 0.43 0.25 29. in crs. Expected return on plan assets 3.51 2.01) 9.11 – – – 24. For the year ended 31 March 2009 GRATUITY PENSION PRMB GRATUITY PENSION PRMB Plan (Benefit) Plan (Benefit) I.50 36.59 13.33 13.15 – – 0.52 7.50 2.82 2. Change in Obligation during the year 1. Current Service Cost 3.09 (0.11) 29.47 37.77 1.95 (0.02 0. Actuarial (Gains) / Losses 5.95 0.06 0.02 1.

Upto 24th August. such as supply and demand in the employment market. Mr. T W Atkins. T V Ramanathan. R M D Bandara. Key Management Personnel – Mr. Expected rate of return on plan asets EIL 7. (CEL) a direct or indirect control over Chloride Eastern Industries Pte Limited. Mr. which is not subject to change. T Arunkumar.00% p. IX.) paid towards Defined Contribution Plans. Chng Hee Teck. P K Kataky. The estimates of future salary increases considered in actuarial valuation. Mr. Enterprise / Individuals having – Chloride Eastern Limited. S B Raheja Brown & Company PLC 3.30% (19. to Pension. Healthcare cost trend rates have no effect on the amounts recognised in the profit and loss account. Mr. Contribution to Provident and Other Funds includes Rs.a (8. S K Mittal. Australia (CMP) . The major categories of plan assets as a percentage of the fair value of total plan assets Investments with insurer 100% 100% – 100% 100% VII.00% p.a (8.30%) CML 8.00 crs.50% p. promotion and other relevant factors. – VI. Mr. Nadeem Kazim.50% p. 242 . Related Party Disclosure: i) Particulars of related parties: 1. Mr. A B Oke.00%) Standard Table LIC (1994-96) Ultimate Mortality for annuitants LIC (1996-98) Ultimate 19. Mr. Name of the Companies/firms/ – Global Lead Alloys. Actuarial Assumptions 1.20% p. Supriya Coomer. 10. Switzerland Mr.a (8. E Narayanan 4. Partha Sen. 4. Mr. NOTES TO ACCOUNTS (Contd.50%) – Standard Table LIC (1994-96) Ultimate – 4.26 crs.00%) 8.00%) – Caldyne Leadage 3.a (6.50%) 8. Dr. Mr. Mr. Mr. Mortality post retirement 5. Associated Companies – ING VYSYA Life Insurance Company Limited (IVL) CEIL Motive Power Pty Limited. UK. Mr. since the benefit is in the form of a fixed amount as per the various grades. The above disclosures are made for all the Indian companies within the Group. take account of inflation. in which Directors/ Klevenberg (Pvt) limited Key Management Personnel Browns Group Industries Limited have signinifacant influence with SM Vaieram whom transactions have happened during the year.EXIDE INDUSTRIES LIMITED 25.00%) – – – – VIII. 12. A K Mukherjee. G Chatterjee.00%) (7. Mortality pre retirement – 8.a 8. 2009 2. to gratuity and Rs. 1. t. (Rs.25% p. In 2010-11 the Company expects to contribute Rs.00 crs.51 crs.a (8. T Rajkumar. Mr. seniority. X. Discount Rate 2. Employee Turnover Rate – 2.00% (2.) V. Singapore (CEIL) the Company LIEC Holdings SA. XI.

70 (41.14) 0.04) – – – – – – – – 0.57) – – – – – – 0.32) 93. crs.63 (8.02 (0.34 (3.04) 10.07) 0.) ii) Details of transactions entered into with related parties: (In Rs.03) 0.04 – – (0.70 (41.04 (0.01 (0.87) 243 .74 (62.09) – – – – – – – (0.11) 1.02 (0.36 (0.43 (0.49)) 1.29) – – – – – – – – – – – – – – – – – – – – – – – – – – – (14.16) 0.36 (0.80 (1.29) 10.50) 0.77) 3.43 (0.68 (0.EXIDE INDUSTRIES LIMITED 25.08 (0.61) – – – – – – – – – – – – – – 0.00) – – – – 12.21 (6.04 (0.14) 0.02) – – 0.49) – – 0.56 (2.04 (0.21 (6.55) 0.57) – – – – – – – – – – – – – – – – – – – – – – – (14.25 (0.85) – (2.09) 0.02 (9.04) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 10.09) 12.03) 0.00) – (7.68 (0.56 (2.32) – (0.70 (9.11) 1.16) 0.04) – – – – – – – (2.32) 93.55) – – 3.08 (0.74) 11.77) – – – – 57.70 (9.) Enterprise/Individuals Key Companies /firms in which having direct or indirect Management directors / their relatives Total control Personnel are interested Balance Balance Balance Balance Transaction Outstanding Transaction Outstanding Transaction Transaction Outstanding Transaction Outstanding Value as on Value as on Value Value as on Value as on 31-03-2010 31-03-2010 31-03-2010 31-03-2010 Associated Companies Purchases of goods – CEIL – Global Lead Alloys – Brown & company PLC – Browns Group Industries Limited Sale of goods – CMP – Brown & company PLC – Klevenberg (Pvt) Limited Job Work charges Paid – Global Lead Alloys Transportation Charges Paid – SM Vaieram Interest Paid – CEIL Technical Assistance Expenses – CEIL Trade Mark Expenses – CEIL Employee Welfare Expenses – IVL Rights Issue of Shares – IVL Rental Income – CEIL Remuneration to Directors (Refer note no II of Schedule 25) to Others – Total – – – – – – – – – (7.01) – – – – 0.31 (2.01 (0.61 (0.04) 3.25 (0.74 (62.09) 0.02) 0.63 (8.02 (9.02) – – – – 10.32) – – – – 3.02) 0.31 (2.04 – – – – – – – – – – – – – – – – – – – – – 0.61 (0.87) – – 3.80 (1.31 (2.85) – – 1.74) 11.04 (0.01) 0. NOTES TO ACCOUNTS (Contd.34 (3.07) – – 0.50) – – – – – – – – – – – – – – – – – (0.04) – – – – – – – – 3.31 (2.61) 57.

a. 244 . ‘Financial Reporting Standards for smaller entities. upto the date the asset is ready for its intended use. and Sri Lanka Accounting Standards respectively. Depreciation i. All other investments are classified as Long-Term investments. taxes. Dividend Revenue is recognized when the shareholders’ right to receive payment is establishment by the balance sheet date. except when there is a decline. Basis of Accounting The consolidated accounts have been prepared under the Historical Cost Convention modified by revaluation of fixed assets in accordance with the applicable accounting standards in India. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their ‘Value in use’. In case of revaluation of fixed assets. ESPEX and ABML whose accounts have been prepared under ‘Singapore Financial Reporting Standards’. d. Revenue Recognition Revenue from sale of goods including manufactured products is recognised upon passage of title to the customers which generally coincides with delivery. Investments Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. except for the foreign subsidiaries CBSEA. Investments in foreign companies are carried at exchange rates prevailing on the date of their acquisition. Unquoted and Long Term Investments are considered at cost. ii. in respect of certain assets at EIL whose residual economic life. incidental expenses. is considered in the accounts and the differential amount is transferred to revaluation reserves. 1956 except for certain assets of EIL and the entire assets of foreign subsidiaries (CBSEA. SIGNIFICANT ACCOUNTING POLICIES a. Current Quoted Investments are stated at lower of cost or market rate on individual investment basis. b. Mercantile System of Accounting is followed. the original cost as written up by the valuer. For recognition of Income and expenses. Further. e. Customs Duty benefits in the form of advance license entitlements are recognised on export of goods. erection/commissioning expenses and interest etc. and are set off from material costs. Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. The accounting policies have been consistently applied by the Company. depreciation is provided at the adjusted higher rates so that the value thereof is written off over the economic life determined by the valuer. other than temporary in value thereof. The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any indication of impairment based on external / internal factors. is less than the residual life as per the books. but suitably modified to conform to the uniform accounting policies. The estimated future cash flows are discounted to their present value at the weighted average cost of capital.EXIDE INDUSTRIES LIMITED 25. The classification of plant & machinery into continuous and non-continuous process is done as per technical certification and depreciation thereon is provided accordingly. where depreciation is provided with reference to the useful economic lives of the respective assets. in which case adequate provision is made for diminution in the value of Investments.) IV. NOTES TO ACCOUNTS (Contd. UK’. except where disclosed otherwise. Fixed Assets Fixed Assets are stated at cost of acquisition inclusive of duties (net of Cenvat). as determined by the approved valuer. c. ESPEX and ABML). Depreciation is provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act.

Any expenditure carried forward is amortised over the period of expected future sales from the related project. Televisions (included in Furniture & Fittings) 6 15. In case of impairment.EXIDE INDUSTRIES LIMITED 25. Water Coolers. Washing Machines. the amount of goodwill arising on consolidation is tested for impairment at each year-end. 1956. NOTES TO ACCOUNTS (Contd. if any. e) Acquired Goodwill is written off over a period of five years.53% Pallet Trucks 10 9. All direct capital expenditure on expansion are capitalised. only that portion is capitalised which represents the marginal increase in such expenditure involved as a result of capital expansion. Office Equipment 03 to 10 years d) The Company has estimated the residual value of Plant & Machinery. Income earned during construction period. Both direct and indirect expenditure are capitalised only if they increase the value of the asset beyond its original standard of performance. The carrying value of Development Costs is reviewed for impairment annually when the asset is not yet in use. Intangible Assets Research & Development Costs Research Costs are expensed as incurred. not exceeding ten years. Refrigerators. depreciation on the following assets is provided at a rate higher than those specified in schedule-XIV of the Companies Act 1956: a) Class of assets Useful economic Life Rate of Depreciation Air conditioners. Fittings. v. iii. Other indirect expenditure (including borrowing costs) incurred during the construction period which are not related to the construction activity nor are incidental thereto. the useful life of the assets is estimated as follows: Plant & Machinery 10 years Motor Vehicles 05 years Furniture.83% Motor Vehicles 6 15. Fittings. the useful life of the assets is estimated as follows: Building 30 years Plant & machinery 10 years Motor Vehicles 04 years Furniture. iv. 245 . is deducted from the total of the indirect expenditure.50% Weighting Scales & Transformers 15 6.80% b) At ABML. As regards indirect expenditure on expansion.83% Computer Hardware 4 24. moulds and computer to be 2% of the cost as against 5% specified in Section 205 (2)(c) of the Companies Act. Expenditure on new projects and substantial expansion Expenditure directly relating to construction activity are capitalised. Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. depreciation is provided on the revised carrying amount of the assets over its remaining useful life. f. are charged to the Profit and Loss Account. if any. and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable. However. Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with reference to the month of addition/disposal. Depreciation includes amount written off in respect of leasehold properties over the respective lease period. Accordingly. g. Office Equipment and Tools & Moulds 05 years c) At CBSEA. Indirect expenditure incurred during construction period are capitalised as part of the indirect construction cost to the extent to which the expenditure are indirectly related to construction or are incidental thereto.) Based upon their respective useful economic life. 98% of the value of fixed assets is being depreciated in the accounts.

Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as expense for the year. Other borrowing costs are charged to Profit & Loss Account. brokerage etc are recognized immediately in the Profit & Loss Account. Leases i. Costs including depreciation are recognized as an expense in the Profit and Loss Account. Borrowing Costs Borrowing Costs attributable to the acquisition and/or construction of qualifying assets are capitalized as a part of the cost of such assets. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Lease income is recognized in the Profit and Loss Account on a straight-line basis over the lease term. Foreign Currency Transactions (i) Initial Recognition Foreign currency transactions are recorded in the reporting currency. ii. and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. are recognised as income or as expenses in the year in which they arise. (iii) (iv) Forward Exchange Contracts The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. (v) Translation of Non-Integral Foreign Currency Operations The translation of the financial statements of a non-integral foreign operation results in the recognition of exchange differences arising from (a) translating income and expense items at the exchange rates at the dates of transactions and assets and liabilities at the closing rate (b) translating the opening net investment in the non-integral foreign operation at an exchange rate different from that at which it was previously valued. i. upto the date when such assets are ready for their intended use. Exchange Differences Exchange differences arising on the settlement/conversion of monetary items. which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased items. are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. The principal amount received reduces the net investment in the lease and interest is recognized as revenue. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Lease rentals are apportioned between principal and interest as per the IRR method. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term. Initial direct costs such as legal charges. 246 . b) Assets acquired under finance leases.EXIDE INDUSTRIES LIMITED 25. Finance charges are charged directly against income. b) Assets given under operating leases are included in fixed assets. NOTES TO ACCOUNTS (Contd.) h. All resulting exchange differences are accumulated in a foreign currency translation reserve until the disposal of the net investment. Operating leases: a) Assets acquired under Operating Leases represents assets where the lessor effectively retains substantially all the risks and benefits of their ownership. Finance lease: a) Assets given under a finance lease are recognized as receivables at an amount equal to the net investment in the lease. j. Leased assets capitalized are depreciated over the shorter of the estimated useful life of the asset or the lease term. by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. (ii) Conversion Foreign currency monetary items are reported using the closing rate.

Product Related Warranty / Guarantee Claims Provision for product related warranty / guarantee costs is based on the claims received upto the year end as well as the management estimates of further liability to be incurred in this regard during the warranty period. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Excise Duty Excise Duty is accounted for at the point of manufacture of goods and accordingly. Cost is determined on a weighted average basis.EXIDE INDUSTRIES LIMITED 25. Cost of finished goods includes excise duty. n. iii) Long term compensated absences are provided for based on an actuarial valuation made at the end of each financial year. l. stores and spares are valued at Lower of cost and net realizable value. in order to meet the Gratuity liability. o. commencing from the first year of service. Cost is determined on a weighted average basis. NOTES TO ACCOUNTS (Contd. p. Gains and losses are recognized in the profit & loss account when the liabilities are derecognized as well as through the amortisation process. Long Term Trade and other payables including the amounts payable to related Companies are initially recognized at fair values and subsequently measured at amortized cost using the effective interest method. The contributions towards defined contribution are charged to the Profit and Loss account of the year when the contribution becomes due. while Short term compensated absences are provided for based on management estimates. 247 . ii) Work-in-progress and finished goods are valued at Lower of cost and net realizable value. There are no obligations other than the contribution payable to the respective trusts. For the purpose of calculating diluted earnings per share. computed on the basis of past trend of such claims. Earning Per Share Earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. However. At ABML. the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. Gratuity liability is accounted for on the basis of annual premium determined by the insurance company. Retirement and other Employee Benefits i) Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. For Caldyne. v) Pension liability is split into a defined benefit portion and a defined contribution portion as indicated in note no. ii) At EIL. less estimated costs of completion and to make the sale. equivalent to an amount calculated based on the half month’s salary of the last month of the financial year of all employees for each completed year of service. components. Net realizable value is the estimated selling price in the ordinary course of business. m.) k. Trade & Other Payables Trade and other payables are recognized at historical costs. At CBSEA and ABML. The Defined benefit portion is provided for on the basis of an actuarial valuation made at the end of each financial year. a provision is carried forward in the balance sheet. Inventories i) Raw materials. The gratuity liability is neither funded nor actuarially valued. CBSEA participates in the national pension schemes as defined by the laws of Singapore and makes contributions to the Central Provident fund scheme in Singapore. iv) Payments made under the Voluntary Retirement Scheme are charged to the Profit and Loss account. gratuity liability and Post employment Medical Benefit liability are defined benefit obligations and are provided for on the basis of an actuarial valuation made at the end of each financial year. is considered for valuation of finished goods stock lying in the factories as on the balance sheet date. CIL and Chloride Metals. ‘III (s)’ above. materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

2010 248 . Firm Registration Number: 301003E Chartered Accountants R. R. and the relevant pronouncements in case of the foreign subsidiaries. s. the risks specific to the liability. in case of foreign subsidiaries/associates. K. unrecognized deferred tax assets is re-assessed and is recognised to the extent that it has become reasonable certain or virtually certain. At each balance sheet date. and in case of foreign entities. but if material. which are contingent in nature. Figures in brackets relate to previous year and the same have been regrouped / rearranged where necessary. where that sufficient future taxable income will be available against which such deferred tax assets will be realized. if it is probable that sufficient future taxable income will be available against which such deferred tax assets can be realized. Kapadia Per R. NOTES TO ACCOUNTS (Contd. these are disclosed by way of notes. in respect of which a reliable estimate can be made. 28 April.EXIDE INDUSTRIES LIMITED 25.) q. Coomer Directors Secretary Mumbai. G. Current income-tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Laws as applicable. V. all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Ramanathan Membership No. Where discounting is used. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. However. Deferred Tax Assets and Liabilities across various countries of operations are not set-off against each other as EIL does not have a legal right to do so. Mukherjee S. Signatures to Schedules 1 to 25 In terms of our attached report of even date. Deferred Income tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Segment Reporting The Company’s operating business are organized and managed separately according to the nature of products and services provided. The analysis of geographical segments is based on the areas in which customers of the Company are located. In case of foreign subsidiaries/associates the tax liability is provided as per the Income Tax Laws prevailing in the respective countries. B. Taxation Provision for Income-Tax comprises of current tax. At CBSEA. provisions are discounted using a current pre-tax rate that reflects. Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years. deferred tax charge or release and fringe benefit tax. Deferred tax assets are not recognized unless there is ‘virtual certainty’. where appropriate. Raheja a Partner T. if the effect of the time value of money is material. V. r. BATLIBOI & CO. K. Agrawal R. are not discounted to its present value and are determined based on the management estimate required to settle the obligation at the balance sheet date. with each segment representing a strategic business unit that offers different products and serves different markets. t. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Provision A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation. Provisions made in terms of Accounting Standard 29. In situations where the company has unabsorbed depreciation or carry forward tax losses. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Contingent Liabilities No provision is made for liabilities. the increase in the provision due to passage of time is recognized as finance costs. 16667 A. S.

30 a. 14th day of July. CL-ID No. Kolkata .m. 48 Shakespeare Sarani. Name(s) of the Member(s) Number of Shares Registered Folio No DP-ID No.Registered Office: EXIDE HOUSE.700 017 and at any adjournment thereof.30 a.m. Client ID No. Kolkata . 2010 at 10. I/We …………………………………………………of …………………………………………………. the 14th day of July.……… being a member/members of the above named Company.700 017 on Wednesday. at Kala Mandir. Registered Office: EXIDE HOUSE.00 Date ……………………… Note: Proxies must reach the Company’s Registered Office not less than 48 hours before the meeting. . 59E CHOWRINGHEE ROAD KOLKATA 700 020 ATTENDANCE SLIP (To be signed and handed over at the entrance of the Meeting Hall) I/We hereby record my presence at the 63rd Annual General Meeting at Kala Mandir. 48 Shakespeare Sarani. 2010 at 10. Signed ……………………………………… Revenue Stamp Re 1. DP-ID No. 59E CHOWRINGHEE ROAD KOLKATA 700 020 PROXY FORM Registered Folio No. hereby appoint ………………………………… ……………………………………………………………………………………………………………………… or failing him ……………………………………………………………………………………………………… of …………………………………………………………………………………………………………………… as my/our proxy to vote for me/us on my/our behalf at the 63rd Annual General Meeting of the Company to be held on Wednesday. : : : : # # Name of Proxy (in block letters) Member’s/Proxy’s Signature (To be filled in if the Proxy attends instead of the Member) Note: The copy of the Annual Report may please be brought to the Meeting hall.