Financial Statement Analysis

Auto-Battery Industry- Exide Battery and Amar Raja Battery

Group Details

Student Name SAP ID Student Roll No

Rishabh Jain 80512100341 A003

Parash Aggarwal 80512100548 A023

Shuchi Vasal 80512100933 A033

Isha Dhing 80512100141 A043

Arpita Singh 80512100868 A053

Srishti Tyagi 80512100652 A063

Introduction

In the Indian storage battery sector, AMARA RAJA Batteries Limited is one of the leading makers of lead-acid
batteries for industrial and automotive applications. The company is headquartered in Hyderabad, India, and
has two significant production sites in Chittoor District, Andhra Pradesh, India: Karakambadi, Tirupati, and
Amara Raja Growth Corridor (ARGC).
Exide Batteries

Exide headquartered in Kolkata is the largest manufacturer of storage batteries of industrial lead-acid
batteries and automotive sectors. They offer wide range of products to cater to the needs of different
consumers. The company was founded in January 1947 as Associated Battery Makers and later in 1995, the
company's name was changed to Exide Industries.
Recommendations

Viewpoint Exide Amara Raja

Management Viewpoint
Lenders’ Viewpoint (Short-Term)
Lenders’ Viewpoint (Long-Term)
Investors’ Viewpoint (Short-Term)
Investors’ Viewpoint (Long-Term)
Growth Outlook
ESG Analysis
Management

Asset Turnover Ratio

Exide: An increase in total assets has led to a minor decline in the
ratio. The company has made significant investments in Mutual
Funds and extended loans and advances (37% increase).
However, the asset turnover is close to the industry norm.
Amara Raja: The Company has also witnessed a decrease in the
Asset Turnover on the account of major increase in Intangible
assets. The amount has been invested in technology training and
software acquisition.

Inventory Turnover Ratio and Days of Inventory

For both companies, the inventory turnover ratio has witnessed
a decline because of the pandemic slowdown. Consequently,
inventory holding days have also increased overtime for both the
companies

Receivables Turnover Ratio and Days of Inventory

Both Exide and Amara Raja have witnessed a marginal increase in
receivables turnover ratio which is a positive sign. Despite
relaxation allowed to debtors, the receivables turnover increased
due to a higher increase in Net Sales. (All sales assumed to be on
credit)

Payables Turnover Ratio and Days of Inventory

Both companies have witnessed an decrease in the ratio and an
increased period payment. This was caused by the relaxation
offered due to covid slowdown by the input suppliers.

Peer Comparison
In terms of operational efficiency, both companies stand almost at par. However, based on the ratio analysis
(Exhibit 1) and introduction of more robust credit collection and payments policies, Amara Raja has a shorter
cash conversion cycle compared to Exide.

Recommendation: Therefore, from a management and efficiency perspective, Amar Raja is a better
performer.
Lenders

Short-Term: Liquidity Ratios

Current Ratio
Current Ratio for both the companies has improved marginally in
the past 3 years. Exide has adopted a cautious liquidity strategy
where it invests any surplus cash in mutual funds. On the other
hand Amara Raja maintains a cash surplus with itself.
Quick Ratio and Cash Ratio
In stressful situations if the inventory and receivables, both the
companies were to be halted, Amara Raja is in a better position
to meet its short-term payment obligations.

Long-Term: Capital Structure and Coverage Ratios

Debt Equity Ratio: Both Exide and Amar Raja maintain a low risk
profile with minimum debt liability. Exide has recently
undertaken lease liability to meet the increased pent up demand
in the recent quarter.

Interest Coverage Ratio: Both companies have witnessed a

decrease in interest coverage ratio however, they still remain
above the industry profile. The reason for the same recent long
term debt that both the companies have taken.

Promoter’s Shareholding
Exide has a higher promoter’s stake (46%) compared to Amara
Raja (28%) despite nearly the same level of debt. Exide has lower
risk profile and higher investor confidence

Peer Comparison and Recommendation

Based on the above analysis, payables turnover ratio and Exhibit 1, Exide is a better option in terms of long-
term solvency, however, Amara Raja is a better performer from short-term liquidity position.
Investors

1. EBITDA Margin

Exide: The Company has witnessed a modest growth in EBITDA margin driven by growth in revenue and minor decline in
the EBITDA margin. An analysis of revenue growth and EBITDA decline is presented below
Revenue growth was factored by:
1. The industrial division caters to 26% of the revenue growth via downstream industries like railways, telecom, solar and
power infrastructure, UPS and mines.
2. Covid led to creation of makeshift home offices and data centers which led to a rise in demand for UPS (Uninterrupted
Power Supply)
3. A large number of government infrastructure projects were put on hold or cancelled owing to restricted mobility under
the pandemic which led to a considerable decline in demand and revenue de-growth in 2020.

EBITDA decline was caused by:

1. Lead, a key raw material used EXIDE is linked to pricing on the London Metal Exchange and therefore, is subject to price
volatility. An increase in Lead prices in 2021 has led to over 20% rise in COGS.
2. A gradual increase in Employee benefit expenses from 4% to 8% has been brought about by an increase in bonuses and
temporary salary additions as a covid stress relief
The company witnessed a modest growth in EBITDA margin driven by growth in revenue and minor decline in the EBITDA
On the revenue side 26% of the revenue growth was led by an increased demand for UPS (Uninterrupted Power Supply)
as covid led to increase in makeshift home offices and data centers On the other hand, Lead, a key raw material, is linked
to pricing on the London Metal Exchange which saw a 20% rise in COGS which has led a decline in EBITDA.

Amar Raja:
EBITDA Margin increased due to increase in revenues and only a minor increase in operating expenses.

Revenue increase
Primarily driven by increased volume and improved sales in automotive and industrial battery equipment. Revenue from
other institutional segments were constrained due to reduced exports and changes in foreign trade policy.
Expenses increase
Cost of materials consumed increases proportionately with an increase in volume and an increase in lead procurement
prices.
Employee costs increased due to headcount additions and increased staff welfare costs. Other expenses reduced as
provisions for doubtful debts decreased.
 2. EBIT Margin
Exide: In the past 3 years, from an EBITDA of roughly 14%
the EBIT tends to fare 10% due to depreciation expenses
which being a non-cash expense do not affect either the
core operation or the free cash flow of the company.
Amara Raja:
Minor decline in EBIT ratio was caused due to
depreciation and amortization expense from regular
additions in fixed assets for capacity expansion. Right-to-
use on lease based assets led to amortization costs.

3. PAT Ratio
Exide: Interest payments for recently undertaken lease
liabilities led a 152% increase in Finance cost dragging the
PAT Ratio down to 7.5%
Amara Raja:
PAT ratio has improved overtime as other income rose as
the provision for doubtful debts on trade receivables
were written back. At the same time the company
witnessed a decline in its finance cost.

4. Return on Equity
Exide: Exide return on Equity (11%) has fallen below the
industry average of 14% over the 3 years despite being a
low debt company like its peers.
Amara Raja: On the other hand, Amara Raja which has a
similar debt profile, maintains a ROE above the industry
average of (15% and 18% in the past 2 years)

5. Price to Earnings and Price to Book Value Ratio

The sector PE Ratio averages at 21.48. Exide is accordingly
undervalued at 20.67. Which means for Rs 1 that an
investor invests in Exide he has to pay a price of Rs 20.67.
On the other hand Amara Raja is slightly overvalued at
22.47. Exide’s book value (2.19) is also low compared to
Amara Raja (3.2)

Peer Comparison and Recommendation: Based on the above ratio analysis and growth strategies of the we
present the following recommendation. (A comprehensive picture of all types of ratios apart from profitability
were also looked at):

Short-Term: Amara Raja enjoys a superior operating and total profitability position compared to Amara Raja
(figures in Exhibit 1).

Long-Term: However, in the long-term Exide has mentioned extensive capacity expansion plans and is keen on
diversifying its core product line in a phased manner which may help it secure a better market positioning in EV
batteries segment compared to Amara Raja. Additionally, Exide also enjoys the advantage of larger magnitude of
revenues and profits. As expansions scale up it is likely to achieve economies of scale thereby viewing a cost
reduction in the long term.
ESG Analysis

EXIDE
Exide integrates Environment, Social and Governance initiatives across various touchpoints of its value chain.

Environment
Exide has recently implemented an Environmental Management System. As a part of this initiative Exide has:
Energy: Reduced its Green House Gas Emission by 1.4% and its consumption of fuel by 5.9% which is roughly 25.24 kg/t in
2021 compared to 26.8 kg/t in 2020. For solar power generation, it has also established offsite roof-top installations.
Water Management: Across its consumption points Exide recorded a consumption of
17,97,688 KL in FY 2020-21. The company reuses demineralized water, its battery
plate washing and dilution of acid.

Social
Exide has empowered various communities and classes via dedicated initiatives
based on health, elementary education, livelihood sustenance and development of
community infrastructure development. The company has dedicated 77% of its CSR
funds for Covid Relief projects for medical requirements. In its Exide Learning
Academy has designed various Employee Learning Programs. It maintained an
average of 8.95 of average training hours per employee.

Governance
To ensure a continuity of dialogue with its stakeholders the company maintains a strong Corporate Code of Conduct,
Whistle-blower, Data Security based on its strong ethical foundations. It has a POSH policy that ensures to create a safe
working environment for all genders. On the suppliers’ end, the company maintains a robust vendor policy to eliminate
defects, breakdown and accidents. The company’s risk management committee actively identifies and mitigates risk via
its Executive Committee.
Against the statutory requirement of 33.33%, nearly 44.44% Board members of the company are independent directors.
The company has observed > 95% attendance during its board meetings

Amara Raja
Environment
To conserve energy, the company has installed various energy efficient equipment, has mandated all motors to be IE3\4
motor, usage of. LED lighting usage of aluminum pipe lines instead of MS\GI pipes, audit of utility equipment like, chillers
and pumps. It has also installed rooftop solar installations for all manufacturing plants

Social
Amara Raja focuses upon broad ranged initiatives from Covid, Health, education for all and rural development.
Under its Educational initiatives, Amara Raja is engaged in providing elementary and higher education to rural youth via
scholarships based on merit.

Governance
The company ensures strong adherence to ethical code of conduct, principles and corporate practices that are
accountable, fair and transparent in nature. Its corporate governance practices include regular disclosure of relevant and
statutory financial information compliance to regulatory requirements and maintenance of a strong and a secure whistle
blower policy.
Key Risks

Demand Risk-The automobile industry's slowdown may have an impact on this division's growth prospects.

Technology Risk-New technologies may make lead-acid technology less relevant. However, an opportunistic stance in the
Electric Vehicle battery usage can prove to be a profitable opportunity.

Supply chain risk-Uncertainties in the supply chain might have an impact on deliveries and the company's massive pan-
India dealer base.

Market risk- Common to both the companies resulting from the price volatility of lead, a core raw material in production
of batteries. The prices of lead are directly linked to market prices of London Metal Exchange.

Outlook
(Sourced from Management Discussion and Analysis of both the companies)

The auto-batteries sector is being viewed with optimism in the future as the automobile industry is expected to grow at a
CAGR of 12.7% till 2026 to reach 512$ billion. The key growth drivers like rising middle class coupled with growing young
population and increasing disposable incomes is increasing the growth of new vehicle sales in India. The young population
also tends to change the vehicles more often thereby reducing the average duration of ownership across vehicles due to
multiple benefits and buyback guarantees being offered by dealers. The changing customer needs and preferences are
also changing.

Various sectors like Telecom, UPS & Data Center and Railways are constantly driving the growth of this sector. The
government has introduced Production Linked Incentive scheme for the auto sector which will increase the growth in
auto-motive sector. The implementation of ‘National Programme on Advanced Chemistry Cell (ACC) battery storage. ACC’s
have the capability to store electric energy either in form of electrochemical or as chemical energy. Consumer electronics,
electric vehicles, sophisticated power networks, solar rooftops, and other areas that use a lot of batteries are likely to
increase rapidly in the future years.
Exhibit 1- Ratio Analysis

Exide Amar Raja

2021 2020 2019 2021 2020 2019
Profitability Ratios
EBITDA(Gross Profit Margin)% 14.15% 14.50% 13.69% 16.83% 16.87% 14.70%
EBIT(Operating Profit
Margin)% 10.37% 10.82% 10.73% 12.36% 12.47% 10.85%
PAT(Net Profit Margin)% 7.50% 8.32% 7.94% 8.94% 9.58% 7.07%
Return on Equity 11.00% 13.11% 14.10% 15.36% 18.08% 14.50%
Return on Asset 8.49% 10.06% 10.33% 11.98% 13.92% 10.75%
Return on Capital Employed 14.24% 16.41% 18.29% 19.78% 21.88% 20.52%
Liquidity Ratio
Current Ratio 1.90 1.91 1.77 2.12 2.02 2.44
Quick Ratio 0.89 0.66 0.85 1.04 0.98 1.27
Cash Ratio 0.42 0.10 0.17 0.34 0.21 0.08
Leverage Ratio
Interest Coverage Ratio 43.82 113.44 187.82 83.94 69.96 106.09
Debt/Equity ratio 0.04 0.01 0.00 0.01 0.01 0.01
Debt/Asset ratio 0.03 0.00 0.00 0.004 0.007 0.01
Operating Ratios
Asset Turnover Ratio 1.12 1.20 1.30 1.32 1.44 1.51
Fixed Asset Turnover Ratio 3.62 3.77 4.15 2.59 2.84 3.16
Working Capital Turnover
Ratio 4.83 6.18 6.99 4.79 6.10 5.22
Inventory Turnover Ratio 2.90 3.14 3.86 3.68 4.04 4.38
Inventory number of days 125.89 116.38 94.47 99.27 90.45 83.42
Receivable Turnover ratio 11.79 10.40 9.79 10.04 9.74 8.84
Days Sales outstanding 30.95 35.11 37.27 36.34 37.49 41.30
Payables Turnover ratio 4.89 6.00 6.12 6.44 7.50 9.02
Days payables outstanding 74.70 60.83 59.69 56.69 48.68 40.48
Cash conversion cycle 82.13 90.67 72.05 78.92 79.26 84.24
Valuation Ratios
Price to Earnings Ratio 20.67 13.50 22.01 22.49 12.29 25.41
Price to Book Value Ratio 2.27 1.77 3.10 3.46 2.22 3.68
Enterprise Value 15584.30 10986.82 18503.20 14395.77 8072.50 12258.36
EV/EBITDA 10.97 7.69 12.76 11.97 7.00 12.28
EPS 8.92 9.71 9.93 37.87 38.69 28.31
Book Value Per share 81.09 74.06 70.44 246.51 214.03 195.29
Exhibit 2- Balance sheet and Variance

EXIDE BATTERY
BALANCE SHEET (In Rs. Cr) Variance
2021 2020 2019 21-20 20-19
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2601.79 2302.92 2265.97 13.0% 1.6%
Intangible Assets 36.06 36.47 31.30 -1.1% 16.5%
Capital Work-In-Progress 200.75 296.88 254.93 -32.4% 16.5%
Other Assets 33.77 34.23 0.00 -1.3%
Fixed Assets 2872.37 2670.50 2552.20 7.6% 4.6%
Non-Current Investments 2176.09 2052.07 1945.48 6.0% 5.5%
Long Term Loans And Advances 23.64 17.19 18.18 37.5% -5.4%
Other Non-Current Assets 161.78 162.82 184.59 -0.6% -11.8%
Total Non-Current Assets 5233.88 4902.58 4700.45 6.8% 4.3%
CURRENT ASSETS
Current Investments 882.54 18.73 253.91 4611.9% -92.6%
Inventories 2346.19 2192.27 1803.97 7.0% 21.5%
Trade Receivables 887.37 815.30 1081.04 8.8% -24.6%
Cash And Cash Equivalents 91.35 154.59 73.55 -40.9% 110.2%
Short Term Loans And Advances 14.65 14.98 13.98 -2.2% 7.2%
Other Current Assets 172.79 143.63 245.52 20.3% -41.5%
Total Current Assets 4394.89 3339.50 3471.97 31.6% -3.8%
Total Assets 9628.77 8242.08 8172.42 16.8% 0.9%
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 85.00 85.00 85.00 0.0% 0.0%
Reserves and Surplus 6808.51 6211.11 5901.99 9.6% 5.2%
Total Shareholders Funds 6893.51 6296.11 5986.99 9.5% 5.2%
NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 77.05 101.86 175.14 -24.4% -41.8%
Other Long Term Liabilities 289.68 36.08 7.05 702.9% 411.8%
Long Term Provisions 53.68 63.78 45.16 -15.8% 41.2%
Total Non-Current Liabilities 420.41 201.72 227.35 108.4% -11.3%
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00
Trade Payables 1641.61 1030.32 1142.79 59.3% -9.8%
Other Current Liabilities 402.51 417.51 546.82 -3.6% -23.6%
Short Term Provisions 270.73 296.42 268.47 -8.7% 10.4%
Total Current Liabilities 2314.85 1744.25 1958.08 32.7% -10.9%
Total Capital And Liabilities 9628.77 8242.08 8172.42 16.8% 0.9%
Exhibit 3- Income Statement and Variance

EXIDE BATTERY
PROFIT AND LOSS STATEMENT (in Rs. Cr) Variance
2021 2020 2019 21-20 20-19
Revenue from Operations 10040.84 9856.66 10588.31 1.87% -6.91%
Other Income 65.44 63.94 38.50 2.35% 66.08%
Total Revenue 10106.28 9920.60 10626.81 1.87% -6.65%
EXPENSES
Cost Of Materials Consumed 6527.61 6519.80 6988.58 0.12% -6.71%
Purchase Of Stock-In Trade 7.46 6.17 18.51 20.91% -66.67%
Changes In Inventories Of FG,WIP
And
Stock-In Trade 44.44 -259.58 -36.85 -117.12% -804.42%
Employee Benefit Expenses 721.52 666.40 637.66 8.27% 4.51%
Other Expenses 1384.23 1558.89 1569.07 -11.20% -0.65%
Operating Expenses 8685.26 8491.68 9176.97 2.28% -7.47%

EARNINGS BEFORE INTEREST, TAX,

DEPRECIATION AND
AMORTISATION EXPENSES 1421.02 1428.92 1449.84 -0.55% -1.44%
Depreciation And Amortization
Expenses 379.35 362.63 313.50 4.61% 15.67%
EBIT 1041.67 1066.29 1136.34 -2.31% -6.16%
Finance Costs 23.77 9.40 6.05 152.87% 55.37%
Profit/Loss Before Exceptional,
Extraordinary Items And Tax 1017.90 1056.89 1130.29 -3.69% -6.49%
Exceptional Items 0.00 -21.70 108.29
Profit/Loss Before Tax 1017.90 1035.19 1238.58 -1.67% -16.42%
Current Tax 285.78 280.92 358.42 1.73% -21.62%
Deferred Tax -26.16 -71.24 36.11 63.28% -297.29%
Total Tax Expenses 259.62 209.68 394.53 23.82% -46.85%
Profit/Loss for the year 758.28 825.51 844.05 -8.14% -2.20%

EARNINGS PER SHARE

Basic EPS (Rs.) 8.92 9.71 9.93
Diluted EPS (Rs.) 8.92 9.71 9.93

DIVIDEND AND DIVIDEND

PERCENTAGE
Equity Share Dividend 170 348.5 204
Tax On Dividend 0 68.13 41.94
Equity Dividend Rate (%) 200 410 240

Total no of shares 85 85 85

Book Value/Net worth per share 81.09 74.06 70.44

Exhibit 4- Balance sheet and Variance

AMAR RAJA
BALANCE SHEET (In Rs. Cr) Variance
2021 2020 2019 21-20 20-19
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2359.68 1826.09 1809.05 29.22% 0.94%
Intangible Assets 95.08 3.13 3.71 2937.70% -15.63%
Capital Work-In-Progress 397.56 732.58 233.88 -45.73% 213.23%
Intangible Assets Under
Development 1.72 94.44 80.86 -98.18% 16.79%
Non-Current Investments 7.12 13.92 20.16 -48.85% -30.95%
Fixed Assets 2861.16 2670.16 2147.66 7.15% 24.33%
Other Non-Current Assets 115.05 107.53 144.21 6.99% -25.44%
Total Non-Current Assets 2976.21 2777.69 2291.87 7.15% 21.20%
CURRENT ASSETS
Current Investments 273.42 142.25 0.30 92.21% 47316.67%
Inventories 1438.24 1142.69 1061.42 25.86% 7.66%
Trade Receivables 787.46 636.28 768.58 23.76% -17.21%
Cash And Cash Equivalents 175.81 84.51 71.75 108.03% 17.78%
OtherCurrentAssets 145.94 217.17 302.02 -32.80% -28.09%
Total Current Assets 2820.87 2222.90 2204.07 26.90% 0.85%
Total Assets 5797.08 5000.59 4495.94 15.93% 11.22%
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 17.08 17.08 17.08 0.00% 0.00%
Reserves and Surplus 4193.18 3638.53 3318.24 15.24% 9.65%
Total Shareholders Funds 4210.26 3655.61 3335.32 15.17% 9.60%
NON-CURRENT LIABILITIES
Long Term Borrowings 23.39 34.34 46.80 -31.89% -26.62%
Deferred Tax Liabilities [Net] 40.74 44.13 95.91 -7.68% -53.99%
Other Long Term Liabilities 97.85 80.80 45.98 21.10% 75.73%
Long Term Provisions 95.39 83.75 69.46 13.90% 20.57%
Total Non-Current Liabilities 257.37 243.02 258.15 5.90% -5.86%
CURRENT LIABILITIES
Trade Payables 746.47 614.89 510.44 21.40% 20.46%
Other Current Liabilities 464.40 387.66 330.14 19.80% 17.42%
Short Term Provisions 118.58 99.41 61.89 19.28% 60.62%
Total Current Liabilities 1329.45 1101.96 902.47 20.64% 22.10%
Total Capital And Liabilities 5797.08 5000.59 4495.94 15.93% 11.22%
Exhibit 5- Income Statement and Variance

Amar Raja
PROFIT AND LOSS STATEMENT (in Rs. Cr) Variance
2021 2020 2019 21-20 20-19
Revenue From Operations 7149.68 6839.46 6793.11 4.54% 0.68%
Other Income 87.36 55.05 46.77 58.69% 17.70%
Total Revenue 7237.04 6894.51 6839.88 4.97% 0.80%
EXPENSES
Cost Of Materials Consumed 4382.54 4219.07 4603.06 3.87% -8.34%
Purchase Of Stock-In Trade 429.99 175.89 170.18 144.47% 3.36%
Changes In Inventories Of FG,WIP And
Stock-In Trade -67.85 52.17 -129.14 -230.06% 59.60%
Employee Benefit Expenses 426.04 385.18 345.23 10.61% 11.57%
Other Expenses 863.30 908.59 852.03 -4.98% 6.64%
Operating Expenses 6034.02 5740.90 5841.36 5.11% -1.72%
EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND
AMORTISATION EXPENSES 1203.02 1153.61 998.52 4.28% 15.53%
Depreciation And Amortization Expenses 319.16 300.74 261.20 6.12% 15.14%
EBIT 883.86 852.87 737.32 3.63% 15.67%
Finance Costs 10.53 12.19 6.95 -13.62% 75.40%
Total Expenses 6363.71 6053.83 6109.51 5.12% -0.91%
Profit/Loss Before Tax 873.33 840.68 730.37 3.88% 15.10%
Current Tax 229.91 231.64 238.78 -0.75% -2.99%
Deferred Tax -3.39 -51.78 8.10 93.45% -739.26%
Total Tax Expenses 226.52 179.86 246.88 25.94% -27.15%
Profit/Loss For The Period 646.81 660.82 483.49 -2.12% 36.68%

EARNINGS PER SHARE

Basic EPS (Rs.) 37.87 38.69 28.31
Diluted EPS (Rs.) 37.87 38.69 28.31

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 85.41 274.66 70.88
Tax On Dividend 0.00 56.47 14.58
Equity Dividend Rate (%) 1100.00 1100.00 708.00

Total no of shares 17.08 17.08 17.08

Book Value/Net worth per share 246.51 214.03 195.29
Exhibit 6- Common Size Analysis

EXIDE BATTERY
PROFIT AND LOSS STATEMENT (in Rs. Cr)
2021 2020 2019
Revenue from Operations 1.00 1.00 1.00
Other Income 0.01 0.01 0.00
Total Revenue 1.01 1.01 1.00
EXPENSES
Cost Of Materials Consumed 0.65 0.66 0.66
Purchase Of Stock-In Trade 0.00 0.00 0.00
Changes In Inventories Of FG,WIP And
Stock-In Trade 0.00 -0.03 0.00
Employee Benefit Expenses 0.07 0.07 0.06
Other Expenses 0.14 0.16 0.15
Operating Expenses 0.86 0.86 0.87

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND

AMORTISATION EXPENSES 0.14 0.14 0.14
Depreciation And Amortization Expenses 0.04 0.04 0.03
EBIT 0.10 0.11 0.11
Finance Costs 0.002 0.001 0.001
Profit/Loss Before Exceptional,
Extraordinary Items And Tax 0.10 0.11 0.11
Exceptional Items 0.00 0.00 0.01
Profit/Loss Before Tax 0.10 0.11 0.12
Current Tax 0.03 0.03 0.03
Deferred Tax 0.00 -0.01 0.00
Total Tax Expenses 0.03 0.02 0.04
Profit/Loss for the year 0.08 0.08 0.08
Exhibit 7- Common Size Analysis

Amar Raja
PROFIT AND LOSS STATEMENT (in Rs. Cr)
2021 2020 2019
Revenue From Operations 1.00 1.00 1.00
Other Income 0.01 0.01 0.01
Total Revenue 1.01 1.01 1.01
EXPENSES 0.00 0.00 0.00
Cost Of Materials Consumed 0.61 0.62 0.68
Purchase Of Stock-In Trade 0.06 0.03 0.03
Changes In Inventories Of FG,WIP And
Stock-In Trade -0.01 0.01 -0.02
Employee Benefit Expenses 0.06 0.06 0.05
Other Expenses 0.12 0.13 0.13
Operating Expenses 0.84 0.84 0.86

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND

AMORTISATION EXPENSES 0.17 0.17 0.15
Depreciation And Amortization Expenses 0.04 0.04 0.04
EBIT 0.12 0.12 0.11
Finance Costs 0.001 0.002 0.001

Total Expenses 0.89 0.89 0.90

Profit/Loss Before Tax 0.12 0.12 0.11
Current Tax 0.03 0.03 0.04
Deferred Tax 0.00 -0.01 0.00
Total Tax Expenses 0.03 0.03 0.04
Profit/Loss For The Period 0.09 0.10 0.07
Other Comprehensive Income 0.00 0.00 0.00
(i) Items that will not be reclassified to profit or loss : 0.00 0.00 0.00

(a) Remeasurements of the defined benefit plans 0.00 0.00 0.00

(b) Equity instruments through other comprehensive income 0.00 0.00 0.00
Total Other Comprehensive Income / (Loss) 0.00 0.00 0.00

Total comprehensive income for the year 0.09 0.10 0.07