EXECUTIVE SUMMARY

The main focus of the project is to study the Working Capital management and Ratio
analysis and to understand the financial position of the Eveready Industries India Ltd with
such analysis.
In this dissertation I have learned to do working capital analysis which helps to analyse and
interpretate the short term financial position of the company. Working capital is a measure of
a company's liquidity, operational efficiency and its short-term financial health. If a company
has substantial positive working capital, then it should have the potential to invest and grow.
I have also learned to do ratio analysis. Ratio Analysis is important for the company in order
to analyse its financial position, liquidity, profitability, solvency, efficiency, and capital
structure and proper utilization of funds which also indicates the trend or comparison of
financial results that can be helpful for decision making for investment by shareholders of the
company.
The market of dry cell batteries in India is becoming promising day by day and has grown
with a CAGR of above 4% historically. Lack of proper power facilities generates higher
demand for these batteries in the rural segment of the country and due to the increasing use of
portable equipment in the urban. The higher demand in the rural segment is a higher revenue
generator for the dry cell market. Innovative improvements such as compact, long-lasting,
disposable are relied upon to give a thriving force to the dry cell battery in the Indian market.
The dominance of organized players in the market has been viewed as a driving force that has
allowed the market to grow at the GAGR of above 5% till 2018-19.
I have done the Ratio Analysis of the Eveready Industries India Ltd with time frame from
2015-16 to 2019-20.I have used various ratios like Liquidity ratio, Solvency Ratio, Efficiency
Ratio, Profitability ratio and Capital Structure to find out the profitability and financial health
of the company. I have also done the finding and Suggestion is ratio analysis for the
Eveready Industries India Ltd. The conclusion of the study has been given at the end of the
study.
 Table Of Contents

S No. Topic Page No.

1 Chapter One 1-10

Introduction 1-10
2 Chapter Two 11
Significance Of The Study 11
3 Chapter Three 12
Objectives Of The Study 12
4 Chapter Four 13-17
Methodology 13
Company & Industry Overview 14-18
5 Chapter Five 19-26
Data Analysis And Interpretation 19-26
6 Chapter Six 27-28
Findings and Suggestions 27-28
7 Chapter Seven 29
Conclusion 29
8 Bibliography 30
9 Annexure 31-35
 Chapter One

Introduction

Every business needs a fund for two purposes- for its establishment and to carry out its day-to
-day operations. Long-term fund are required to create production facilities through purchase
of fixed assets such as plant and machinery, land, building, furniture, etc. Investments in
these assets represent that part of the firm’s capital which is blocked on a permanent basis
and is called Fixed Capital. Funds are also needed for short-term purpose for the purchase of
raw materials, payment of wages and other day-to-day expenses etc. These fund are known as
working capital. In simple words, working capital refers to that part of the firm’s capital
which is required for the financing short term or current assets such as cash, marketable
securities, debtors and inventories. Funds thus invested in current assets keep revolving fast
and are being constantly converted into cash and this cash flows out again in exchange for
other current assets. Hence, it is also known as revolving or circulating capital or short-term
capital.
Working capital, also known as net working capital (NWC), is the difference between a
company’s current assets, such as cash, accounts receivable (customers’ unpaid bills) and
inventories of raw materials and finished goods, and its current liabilities, such as accounts
payable. Net operating working capital is a measure of a company's liquidity and refers to the
difference between operating current assets and operating current liabilities. In many cases
these calculations are the same and are derived from company cash plus accounts receivable
plus inventories, less accounts payable and less accrued expenses.
Working capital is a measure of a company's liquidity, operational efficiency and its short-
term financial health. If a company has substantial positive working capital, then it should
have the potential to invest and grow. If a company's current assets do not exceed its current
liabilities, then it may have trouble growing or paying back creditors, or even go bankrupt.
There are two concept of working capital:
A: Balance Sheet concept
B: Operating Cycle or Circular Flow concept

(A) Balance sheet concept

There are two interpretation of working capital under the balance sheet concept:

(1) Gross Working Capital:

In a broad sense the term working capital refers to the Gross working capital and represents
the amount of the funds invested in currents assets. Thus, the gross working capital is the
capital invested in the total currents assets of the enterprise. Current assets are those assets
which in the ordinary course of business can be converted into cash within a short period of
normally one accounting year.

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(2) Net Working Capital:
In a narrow sense , the term working capital refers to the net working capital. Net working
capital is the excess of current assets over currents liabilities.
Net working Capital= Current Assets - Currents Liabilities
Net Working Capital may be positive or negative. When the current assets exceeds the
current liabilities the working capital is positive and the negative working capital results
when the current liabilities exceeds the current assets. Current liabilities are those liabilities
which are intended to paid in the ordinary course of business within a short period normally
one accounting year out of the current assets or the income of the business.
The position of negative working capital does not allow a firm to utilise efficiently the fixed
assets due to non-availability of liquid funds and adversely affects its profitability or the rate
of return. In fact, no firm can continue business for a long period of time with a negative
working capital. The business of the firm may have to be closed due to technical insolvency.

(B) Operating Cycle or Circular Flow concept

As said earlier Working Capital refers to that part of firm’s capital which is required for
financing short term or current assets such as cash, marketable securities, debtors and
inventories. Fund thus invested in current assets keeps revolving fast and are being
consistently converted into the cash flow out again in exchange for other current assets. The
circular flow concept of working capital is based upon this Operating or working capital
cycle of a firm.

The cycle starts with the purchase of raw material and other resources and ends with the
realisation of cash from the sale of finished goods. It involves the purchase of raw materials
and stores, its conversion into the stock of finished goods. It involves the purchase of raw
materials and stores, its conversion into stocks of finished goods through work-in-progress
with progressive increment of labour and service costs, conversion of finished stocks into
sales, debtors and receivables and ultimately realisation of cash and this cycle continuous
again from cash to purchase of raw material and so on. The speed/time required to complete
one cycle determines the requirements of working capital longer the period of cycle, larger is
the requirement of working capital.

Importance or Advantages of Adequate working capital:

Working Capital is the life blood and nerve centre of business. Just as a circulation is
essential in the human body for maintain life, working capital is very essential to maintain the
smooth running of the business. No business can run successfully without an adequate
amount of working capital. The main advantages of maintaining adequate amount of
working capital are as follows:
1. Solvency of the business:
Adequate working capital helps in maintaining solvency of the business by providing
uninterrupted flow of production.
2. Goodwill:

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 Sufficient working capital enables a business concern to make prompt payments and
hence helps in creating and maintaining goodwill.
3. Easy loans:
A concern having adequate working capital, high solvency and good credit standing can
arrange loans from bank and others on easy and favourable terms.
4. Cash discounts:
Adequate working capital also enables concerns to avail cash discounts on the purchases
and hence it reduces costs.
5. Regular supply of raw materials:
Sufficient working capital ensures regular supply of raw materials and continuous
production.
6. Regular payments of salaries, wages, and other day-to-day commitments:
A company which has ample working capital can make regular payment of salaries,
wages and others day-to-day commits which raises the moral of the employees, increases
their efficiency, reduces wastages and cost and enhance production and profits.
7. Exploitation of favourable market conditions:
Only concerns adequate working capital can exploit favourable market conditions such
as purchasing its requirement in bulk when the price are lower and by holding its
inventories for higher prices.
8. Ability to face crisis:
Adequate working capital enables a concern to face business crisis in emergencies such as
depression because during such periods, generally, there is much pressure on the working
capital.
9. Quick and regular return on investments:
Every investor wants a quick and regular return on investments. Sufficiency of working
capital enables a concern to pay quick and regular dividends to its investors as there may
not be much pressure to plough backs profits. This gains the confidents of its investors
and create a favourable market to raise additional fund in the future.
10. High morale:
Adequacy of working capital creates an environment of securities, confidence and high
morale and creates overall efficiency in business.
The Different Working Capital Financing Policies
In general, working capital policies involve determining the sources of finance. It also
determines the allocation of these finances towards current assets and liabilities. Broadly,
three strategies can help optimise working capital financing for a business, namely, hedging,
aggressive, and conservative, as per the risk levels involved.

1. Conservative Policy
An organisation undertakes this strategy only when it requires minimising risk to the furthest.
Under this policy, the management regulates the credit limits stringently to ensure low risk.
Moreover, current assets are always above par against the current liabilities to ascertain
sufficient availability of funds.

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Organisations majorly utilise long-term funding options to finance fixed and fluctuating
current assets. The use of short-term sources is kept to a minimum for low-risk.
Observing a conservative working capital financing policy, hence, leads to underutilisation of
funds, thus cutting down on returns and compromising growth.

2. Aggressive Policy
As the name may suggest, aggressive policies involve the maximum risk, and thus, also bring
the potential for multiplied growth.
When observing this strategy, companies ensure their current assets, such as the value of
debtors, are minimised by ensuring timely payments or minimum credit sales. At the same
time, management also maintains that payments to creditors are delayed to the furthest.

Organisations aiming at accelerated growth can opt for this working capital policy. However,
since it involves immense risk, strong business acumen, and deft handling of finances are
critical.

3. Hedging Policy/Moderate Policy/ Matching Policy/Average Policy

Also known as matching policy, adopting this strategy ensures that the current assets of a
company are always in sync with short-term liabilities.
In essence, this working capital financing policy aims to balance the two extreme strategies,
both in terms of risk and growth potential.
Most organisations observing this strategy use long-term sources of finance to invest in fixed
current assets and resort to short-term funding options for current asset financing.

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Ratio analysis
Ratio analysis is a powerful tool of the fundamental analysis. A ratio is defined as “the
indicated quotient of two mathematical expressions” and as “the relationship between
two or more things.” In fundamental analysis, a ratio is used as the benchmark for
evaluating the financial position and performance of the firm. The relationship between
two accounting figures, expressed mathematically, is known as Financial ratio (or simply
as a ratio). The calculation of ratios is an important technique for analysing and
understanding profit and loss accounts and balance sheets. Ratio analysis is the most
widely used technique for analysing and comparing financial reports. It analyses financial
data from the firm’s Profit and Loss Account and the Balance Sheet. It is a quantitative
analysis of information contained in a company’s financial statements. Ratio analysis is
used to evaluate various aspects of a company’s operating and financial performance
such as its efficiency, liquidity, profitability and solvency.

Uses of Ratio Analysis:

 A ratio analysis helps in making decision from the information provided in the financial
statement.
 A ratio calculated for a number of the years’ work as a guide in forecasting and planning
for future of company.
 The financial strength and weakness of the firm are communicated in a more easy and
understandable manner by use of ratio.
 A ratio helps in making effective control of the business. A company can set a standard
ratio and compare it with actual ratio, if any deviation found the company can take
corrective action.
 Ratios are not only useful for internal management but also equally useful for the
prospective investors, creditors and outsiders.
 Ratios are the best instrument for testing solvency, liquidity, profitability and
management efficiency of any business.

Limitation of Ratio Analysis:

 A single ratio, usually does not covey much of a sense. To make a better interpretation a
number of the ratio have to be calculated which is likely to confuse the analysist.
 There is no well accepted standard or rule of thumb for all the ratios which can be
accepted as norms.
 A ratio of past are not necessarily true indicator of the future.
 The firm can make some year-end changes to their financial statements, to improve their
ratios.
 Then the ratios end up being nothing but window dressing.
 Ratios ignore the price level changes due to inflation. Many ratios are calculated using
historical costs, and they overlook the changes in price level between the periods. This
does not reflect the correct financial situation.

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 Classification of Ratios:
 Liquidity ratios
 Solvency ratios
 Efficiency/Turnover ratios
 Profitability ratios
 Capital Structure ratios

Liquidity Ratios:
Liquidity ratios measure a company's ability to pay off its short-term debts as they come
due using the company's current or quick assets. Liquidity ratios include the current ratio,
quick ratio, and working capital ratio.
Current ratio: The current ratio is defined as a relationship between current assets and
current liabilities. This ratio is also known as the working capital ratio. This indicates the
firm liquidity position and its ability to pay its current obligation as and when they
become due.

Current Assets
Current Ratio
= Current Liabilities

Quick ratio: The Quick ratio also known as Acid test ratio or Liquid ratio , compares the
total of a company's cash, temporary marketable securities, and accounts receivable to the
total amount of the company's current liabilities.

Current Assets - Inventories- Prepaid Expenses

Quick /Acid Test or Liquid Ratio
= Current Liabilities - Bank Overdraft

Solvency Ratios:
The term ‘Solvency’ refers to the ability of a concern to meet its long term obligations.
The long term indebtedness of a firm includes debenture holders, financial institution
providing medium and long-term loans and other creditor selling goods on long term
basis. The long term creditors are interested in knowing the firm ability to pay regular
interest on long term borrowings, repaying of principal amount, at the maturity and the
security of their loans It’s also known as leverage ratios, also called debt management
ratios, measure two key aspects of the use of debt financing by the firm. The use of debt
financing a called financial leverage. We want to know the level of financial leverage
used by the business as well as the ability of the firm to service its debt obligations. The
Solvency ratio namely debt-equity ratio and interest cover is discussed below.
Debt to Equity Ratio: The debt to equity ratio (D/E) is also widely used as an indication
of the level of financial leverage. While there are several ways of computing this ratio,

6
the most useful version is to express long term debt as percent of total equity. Thus it
focuses only on the long term financing, both debt and equity, and it is meaningful when
we want to examine the long-term leverage. Total equity includes both preferred equity
and common equity. A higher debt equity ratio indicates greater leverage and potentially
higher financial risk.
Long Term Debt
Debt to Equity ratio =
Equity Capital +Reserve and Surplus

Interest Coverage ratio: The interest converge ratio, also known as the times-interest
earned (TIE), measures the ability of firm`s current operating earnings (EBIT) to meet
current interest obligations. It is the ratio of EBIT to Fixed interest charge. The ratio
shows number of times the interest payment is covered by the firm`s operating earnings.
The larger the coverage the better their ability of the firm to service interest obligations
on debt.
Earnings Before Interest and Tax
Interest Coverage Ratio =
Fixed Interest Charge

Efficiency Ratios:
Efficiency ratios, also known as activity financial ratios, are used to measure how well a
company is utilizing its assets and resources. This ratios are also known as Turnover ratio
because they indicate the speed with which assets are converted or turned into sales
Efficiency ratios include:
Assets Turnover Ratio: Asset turnover is a ratio that measures the value of revenue
generated by a business relative to its average total assets for a given fiscal or calendar
year. It is an indicator of how efficient the company is using both the current and fixed
assets to produce revenue.

Sales
Assets Turnover Ratio = Average Assets *

Opening Assets + Closing Assets

Average Assets* =
2

Inventory/Stock Turnover Ratio: The inventory turnover ratio is the number of times a
business sells and replaces its stock of goods during a given period. It considers the cost
of goods sold, relative to its average inventory or a year or in any a set period of time.
Cost of Goods Sold
Inventory/ Stock turnover ratio =
Average Inventory

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 Opening Stock + Closing Stock
Average Inventory/stock =
2
Debtor Turnover Ratio: This ratio indicates the velocity of debt collection of firm. In
simple words, it indicates the number of times average debtors(Receivable) are turned over
during a year.
Net Credit Annual Sales
Debtor Turnover Ratio =
Average Trade Debtors

Average Debtors = Opening Debtor + Closing Debtor

2
Profitability Ratio:
Profitability ratios are a class of financial metrics that are used to assess a business's
ability to generate earnings relative to its associated expenses. For most of these ratios,
having a higher value relative to a competitor's ratio or relative to the same ratio from a
previous period indicates that the company is doing well.

Gross Profit Ratio: Gross profit ratio measures the relationship of the gross profit to net
sales and is usually represented as percentage. This ratio indicate the extent to which
selling prices of the goods per unit may decline without resulting in losses on operations
of the firm. It reflects the efficiency with which a firm produce a products. As gross
profit is found by deducting cost of goods sold from net sales, higher the gross profit
ratio better the results.

Gross Profit
Gross Profit Ratio= ∗ 100
Net Sales

Net Profit Ratio: Net profit ratio establishes a relationship between net profit (after tax)
and sales, and indicates the efficiency of the management in manufacturing, selling and
administrative and other activities of the firm. This ratio overall measures the firm
profitability.

Net Profit after tax

Net Profit Ratio= *100
Net Sales

Return on Assets: Return on assets (ROA) is the relationship between ne Net profit
(after tax) and Assets Employed to earn profit. ROA gives a manager, investor, or analyst
an idea as to how efficient a company's management is at using its assets to generate
earnings. Return on assets is displayed as a percentage and its calculated as:

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 Net Profit after tax
Return on Assets =
Total Assets

Return on Equity: Return on equity (ROE) is a measure of financial performance

calculated by dividing Net profit after tax - Preference dividend by Equity share capital
(paid up). It’s because shareholders' equity is equal to a company’s assets minus its debt,
ROE could be thought of as the return on net assets. ROE is considered a measure of how
effectively management is using a company’s assets to create profits. ROE is expressed
as a percentage and can be calculated for any company if net income and equity are both
positive numbers. Higher the ratio better it is for the company.
Net Profit after tax - Preference Dividend
Return on
Equity= Equity Share Capital (Paid up)

Capital Structure:
The capital structure is how a firm finances its overall operations and growth by using
different sources of funds. Debt comes in the form of bond issues or long-term notes
payable, while equity is classified as common stock, preferred stock or retained earnings.
Short-term such as working capital requirements is also considered to be part of the capital
structure.

Earnings per share (EPS): Earning Per share is a small variation of return on equity
capital and is calculated by dividing the net profit after taxes and preference dividend by
the total number of equity shares. The EPS is a good measure of profitability and when
compare to the EPS of similar other companies, it gives a view of the comparative
earning or earning power of a firm. EPS calculated for the number of years indicates
whether or not earning power of the company has increased.

Net Profit after tax−Preference Divident

Earnings per share= No of Equity Share
Price Earnings (PE) Ratio: Price earnings ratio is the ratio between market price per
equity share and earnings per share. The ratio is calculated to make an estimates of
appreciation in the value of a share of a company and widely used by investors to decide
whether or not to buy shares in a particular company. Generally, higher the PE ratio , the
better it is. If the PE ratio falls management should look into the causes that have resulted
into the fall of this ratio.

Market price per equity share

Price Earnings (PE) ratio=
Earnings per share

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Dividend per share (DPS): Dividends per share is equal to the sum of total amount of
dividends that the company has given out over a year divided by total number of average
shares that the company holds; this gives a view of the total amount of operating profits
that the company has sent out of the company as a profit shared with shareholders that
need not be reinvested.
Dividend per share= Dividend paid to shareholder
Earning per share

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 Chapter Two

Significance of the study

This study helps to understand the working capital Analysis of the Eveready Industries India
Ltd. Working capital analysis is used to determine the liquidity and sufficiency of current
assets in comparison to current liabilities. This information is needed to determine whether an
organization needs additional long-term funding for its operations, or whether it should plan
to shift excess cash into longer-term investment vehicles. Working capital Analysis is
significant in financial management due to the fact that it plays a vital role in keeping the
wheel of the business running. Every business requires capital, without which it cannot be
promoted. Investment decision is concerned with investment in current asset and fixed asset.
The study also helps to understand the ratio analysis of the Eveready Industries India Ltd.
Ratio Analysis is important for the company in order to analyse its financial position,
liquidity, profitability, solvency, efficiency, and capital structure and proper utilization of
funds which also indicates the trend or comparison of financial results that can be helpful for
decision making for investment by shareholders of the company. Interpretation of the
financial statements and data is essential for all internal and external stakeholders of the firm.
With the help of ratio analysis the interpret of numbers from the balance sheet and income
statements done.

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 Chapter Three
Objective of the
Study

1. To analyse and discuss the financial ratios of Eveready Industries India Ltd for the
period 2015-16 to 2019-20.

2. To interpret the working capital scenario of Eveready Industries India Ltd for the
period of 5 years.

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 Chapter Four

Methodology

 Industry- Dry Cell Batteries

 Classification of Data : Secondary Data
 Type of Data : Quantitative Data
 Source of Data:
o Money Control
o Yahoo Finance
o Annual Report
o National Stock Exchange
 Time Frame of the Data: 2015-16 to 2019-20 (Yearly)
 Chart Type: Bar Diagram
 Tools and Indicators Used:
Ratio Analysis-
o Liquidity Ratio
 Current Ratio
 Quick Ratio
o Solvency Ratio
 Debt Equity Ratio
 Interest Coverage Ratio
o Efficiency/Turnover Ratio
 Assets Turnover Ratio
 Inventory Turnover Ratio
 Debtor Turnover Ratio
o Profitability Ratio:
 Gross Profit Ratio
 Net Profit Ratio
 Return on Equity
 Return on Assets
o Capital Structure
 Earnings Per Share(EPS)
 Price Earnings Ratio
 Dividend Per Share(DPS)

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 Industries Overview
Dry Cell Batteries:
There are broadly three types of dry cell batteries available in the domestic market namely
ZincCarbone, Alkaline & Rechargeable battery. In India, a major portion of customers is
using ZincCarbon batteries because it is available in all sizes, and also their prices are the
lowest one but their durability is not much longer. The shelf life of alkaline type dry cell
battery is long then Zinc-Carbon battery type but at the same time it costlier too.
Rechargeable dry cell batteries are good because its disposal is less as they have more
capacity with a compact size. People getting more aware of the longer durability of the
alkaline batteries, increasing disposable income, increasing the living standard of people and
the problem of disposal of dry cell batteries will drive the sales in the coming years. Dry cell
batteries represent the cheapest source of portable power and are used in majority electronic
gadgets. India suffers from a low per capita consumption across several product groups
including dry batteries, indicating a latent potential for sustainable growth in this sector.

Automobiles and backup power supply equipment’s are some of the large users of wet lead
acid batteries. Depending on the type of battery, it has to be replaced almost every 3-4 years.
Hence the replacement market for batteries is bigger than the OE market. Apart from the
organized, branded battery manufacturers, the industry also has a significantly large
unorganized market. Although the OEMs prefer the branded batteries, the unorganized
players are predominant in the after sale market or replacement market. The size of the
battery industry is difficult to determine, since the size and type of the battery varies
depending on its application, particularly for industrial batteries. Hence the number of units
sold may not always be the correct measure. Besides the presence of unorganized players
makes it even more difficult to determine the market size. In case of automotive batteries, the
number of automobiles sold can be correlated with the number of batteries sold. Industrial
batteries meanwhile cannot be measured based on units sold since each battery differs based
on its application, i.e. an inverter battery is different from a battery used in a power plant or
UPS. It is estimated that only around 10 percent of lead acid storage batteries demand is
directly linked to new vehicle production while about 40 percent of storage batteries are used
for replacement purpose. The remainder of storage battery consumption is mixed and
includes about 25 percent from industrial batteries. So the slowdown in auto sector may not
impact the storage battery industry so much. The replacement battery demand is expected not
to be affected so poorly and it is really critical as it constitute 40% of total market demand.
As economies worsen, motorists are hanging onto their cars for longer and demand for
recycled batteries is increasing. Importance of demand for replacement car batteries also
increases in the light that batteries will continue to fail irrespective of the economic climate.
Typically the unorganized players use the old discharged battery containers and recharge the
cells inside them. Although the unorganized players are unable to recharge the battery to its
full capacity, it is yet preferred over the branded batteries, since it is priced about 20-25%
lower than a branded battery. More than two-wheelers and passenger vehicles, commercial
vehicles are bigger users of batteries from unorganized battery makers, as they are cost
conscious rather than brand. Since the batteries made by these unorganized players are of

14
inferior quality and they have high probability of failing. The share of the unorganized
battery manufacturers is expected to reduce going forward with growing awareness among
people over the use of inferior quality batteries, implementation of VAT across states and
various initiatives taken up by the organized battery manufacturers.

Future Prospect:
As per the report “India Dry Cell Battery Market By Value, By Battery Size, By Battery
Type (Zinc, Alkaline, Others), By segment (Organized & Non- Organized), Overview, 2020-
2025” published by Bonafide Research the findings show that the Zinc-Carbon battery
segment of the Dry cell battery market has been enjoying prominent positions in the market.
Overall, the market has grown with a CAGR of above 4% in the last couple of years. The
reason behind this growth was a person using more portable devices, which increases the use
of dry cell batteries. This growth has also been largely supported by the organized segment of
the market generating a major part of the revenue it has shown a growth of above 5% CAGR
historically. The retail segment and distribution of the dry cell are largely depended on
general provision stores, grocery shops, supermarkets and hypermarkets, electrical shops,
stationery shops, gift stores, printing center, chemists' shops and even many of their products
are available at the local pan shops in India with a market share of approximately 80-90%.
This mode of trade will be reflecting in the coming years when the growth is higher than the
current rate. The trends of batteries in India show an increase in the production of alkaline
batteries as well as rechargeable and compact dry cell batteries. Now customers are looking
for good quality products in urban areas because they are slowly aware of the advantages of
quality products.

15
 Company Overview

Eveready Industries India Ltd

23, R N Mukherjee Road,,5th Floor, Kolkata, West Bengal, Tel. No. 033-22435029, Fax No.
22482248, Email-mdpldc@yahoo.com, Internet-http://www.mdpl.in

Eveready Industries India incorporated in 1934, is a well-

known name in dry cell batteries segment. Earlier, the
company was a subsidiary of Union Carbide Corporation,
US that later was acquired by B M Khaitan and the
Williamson Magor group of companies.
Besides dry cell batteries, the company also manufactures
flashlights (torches), LED lights, mosquito repellant,
packet tea and home appliances. Eveready has pan-India
state-of-the-art manufacturing facilities at Chennai, Lucknow, Noida, Haridwar, Maddur and
Kolkata and is supported by a sales and distribution network across the country. Eveready
also has a state-of-the-art packaging unit for packet tea at Chuapara T.E.
In 1995, company formed a JV with Ralston Purina Overseas Battery Company of US to
establish Energizer India- a private limited company that would be engaged in manufacturing
of reowned Energizer brand of alkaline batteries in India. The same year, in order to develop
rechargeable Ni-Cd and Ni-Mg batteries in India, company entered a MoU with Gold Peak
Industries of Hong Kong.
In 1999-2000 the company established a new poly sleeve jacketed battery line at
Camperdown Works in Calcutta.
Later company started manufacturing batteries for watches. In April 2004 Eveready
Industries India was demerged into two separate companies namely McLeod Russel India
and Eveready Industries India. Eveready has the second largest retail distribution network in
India. Later with an investment of Rs.60 crores company established a unit situated in
Uttaranchal to manufacture of dry cell batteries with a capacity of 40 crore pieces per annum,
this project became operational in 2006.

Products
Eveready Industries have business interests spreading across batteries, flashlights,
lighting solutions, alternative lighting solutions, and packed Tea.
Batteries

 Zinc-carbon battery: A zinc-carbon battery which is commonly used for toys,

cameras, flashlights (torches), Walkmans, CD players, radios, clocks and cordless
mikes.

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  Alkaline Battery: Eveready Ultima Alkaline battery is one of the most popular
batteries used in electronic gadgets in modern times.
 Rechargeable Battery: 'Eveready Recharge' is one of the pioneers as a brand of
rechargeable batteries and chargers to be introduced in India.
 Battery Guide
Flashlights

 digiLED Torches: These torches use power-efficient LEDs in place of the

incandescent bulbs.
 Brass Torches: Jeevan Sathi brass torchlight has been a reliable, durable and
repairable, making it a must-have evening companion especially in the villages. It
is one of the most trusted brands in rural India across all product categories.
 Aluminium & Plastic Torches: These torches have strong durable bodies, slide
switches for easy handling and come in a wide range of models and colors.
Lighting Solutions

 Compact Fluorescent Lamps: In 2007, Eveready forayed into the lighting business
with the launch of a range of Compact Fluorescent Lamps.
 Halogen Lamps: Eveready offers halogen lamps for outdoor lighting and video-
shooting.
 General lighting service/incandescent lamps: A range of incandescent bulbs in
different sizes, voltages, and colors are used widely in household and commercial
lighting, apart from portable, decorative and advertising lighting.

Company Detail

Formerly Union Carbide India Limited

Type Private

Industry  Dry Cell Batteries

 Consumer electronics
 Electrical equipment’s
 Energy
Founded 1905; 116 years ago
Headquarters Kolkata, West Bengal, India
Area served India
Products  Batteries
 flashlights
 lanterns
 lamps
 luminaires

17
 Source: Moneycontrol.com

Capital Structure
Dividend Summary:
Market 1,904
Capitalization
The company has a good
dividend track Face Value 5 report and has
consistently 52 week High 335 declared
dividends for 52 week Low 45.4 the last 5
years.
Beta 0.45
Book Value 74.07

Announcement
Effective Date Dividend Type Dividend (%) Remarks
Date
29-05-2018 26-07-2018 Final 30.00 Rs.1.5000 per
share(30%)Dividend
06-05-2016 14-07-2016 Final 20.00 Rs.1.0000 per
share(20%)Dividend
24-07-2015 05-08-2015 Interim 20.00 Rs.1.0000 per
share(20%)Interim
Dividend
Source:Moneycontrol.com

18
 Chapter Five
DATA ANALYSIS AND INTERPRETATION STATEMENT OF WORKING
CAPITAL
(in crores)
CURRENT ASSETS 2015-16 2016-17 2017-18 2018-19 2019-20
Inventories 237.41 284.30 300.11 252.80 210.38
Trade Receivables 70.54 83.87 120.61 105.30 50.38
Cash And Cash Equivalents 2.69 3.10 4.08 5.20 10.07
Short Term Loans And Advances 52.76 7.41 89.57 231.31 423.35
Other Current Assets 7.42 40.94 110.17 123.76 125.30
Total Current Assets(A) 370.82 419.61 624.53 718.36 819.47

CURRENT LIABILITIES 2016 2017 2018 2019 2020

Short Term Borrowings 71.78 72.72 103.39 84.52 125.41
Trade Payables 213.42 239.91 327.12 256.02 184.82
Other Current Liabilities 72.04 83.77 140.84 220.35 193.97
Short Term Provisions 19.66 13.50 13.80 17.62 16.82
Total Current Liabilities(B) 376.89 409.90 585.15 578.51 521.02
Net Working Capital (A-B) (6.07) 9.71 39.38 139.85 298.45
Table 1:Source - Moneycontrol.com

Interpretation:
 The Net working capital of Eveready Industries India Ltd had been increasing
continuously over past several years.
 The company has positive working capital for the past four years except on financial year
2015-16 with negative Net working capital.
 The current assets of the company is able to meets its current liability. It also implies that
the company has been improving its liquidity and solvency over past years.

Working capital Turnover ratio:

Years Net Sales Net Working Ratio

2015-2016 1,322.51 (6.07) (217.88)
2016-2017 1,355.18 9.71 139.57
2017-2018 1,456.35 39.38 36.98
2018-2019 1,457.73 139.85 10.42
2019-2020 1,210.93 298.45 4.06
Table 2:Source-Moneycontrol.com

19
 Working Capital Turnover Ratio
200
100
0
-100
-200 2015-16 2016-17 2017-18 2018-19 2019-20
-300

Working Capital Turnover Ratio

Figure 1:Working Capital Turnover Ratio of Eveready Industries India Ltd

Interpretation:

 In the year 2015-2016 the company had negative working capital turnover ratio. It implies
that the company had insufficient short term funds for fulfilling the sale done for that
period.
 The negative working capital turnover ratio is due to excess current liabilities over current
assets. Thus signifies poor liquidity of the company.
 The working turnover ratio of the Eveready Industries India Ltd for the financial year
2019-20 is 4.06 times. As compare to the past 5 year’s performance, the working capital
turnover ratio of the firm has decreased in the financial year 2019-20.
 It implies that in financial year 2016-17 and 2017-18 the working capital turnover ratio
was too high. The company needed to rise additional funds to support future growth.
 In the financial year 2018-19 the working capital turnover ratio was better then prior year
but in the financial year 2019-20 the working capital turnover ratio has fallen due to
decrease in net sale of the company.

Company Analysis and Interpretation

1. Liquidity Ratio

Liquidity Ratio
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Current Ratio 0.98 1.02 1.07 1.24 1.57
Quick ratio 0.35 0.33 0.55 0.80 1.17
Table 3: Source- Moneycontrol.com

20
 Liquidity Ratio
2

1.5

0.5
2015-16 2016-17 2017-18 2018-19 2019-20
0
Current RatioQuick Ratio

Figure 2.Liquidity Ratio of Eveready Industries India Ltd

Interpretation:

a. Current Ratio:
 The current ratio for the financial year 2019-2020 is 1.57. As compare to the past 5 year’s
performance of Eveready Industries India Ltd, the current ratio has increase.
 The current ratio of the company is below standard but improving every year. The ratio is
below the accepted standard of 2:1. The market liquidity position is improving and it can
meets its creditor demand in better way.
 The company has been able to increase the current ratio past 5 years. It implies the
improvement in the liquidity position of a firm.

b. Quick Ratio:
 The quick ratio for the financial year 2019-20 is 1.17. As compare to the past 5 year’s
performance of the Eveready Industries India Ltd, the quick ratio has increase.
 The quick ratio for the financial year 2019-20 is above accepted standard of 1:1 but past
its 4 years financial year the quick ratio was not satisfactory since the ratio was below
standard.
 Though the quick ratio of company have remained below standard, the company have
contentiously tried to improved it to reached above standard in financial year 2019-20.
 The company needs to keep consistency in improving the liquidity ratio so that the
company can have better short term financial position in future.

2. Solvency Ratio:

Solvency Ratio
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Debt to Equity Ratio 0.21 0.58 0.55 0.78 0.49
Interest Coverage 3.21 5.51 3.69 2.53 1.97
Ratio(%)
Table 4:Source- Moneycontrol.com

21
 Solvency Ratio
6
5
4
3
2
1
0

2015-16 2016-17 2017-18 2018-19 2019-20

Debt to Equity Interest Coverage Ratio

Figure 3: Solvency Ratio of Eveready Industries India Ltd

Interpretation:

a. Debt to Equity Ratio:

 The Debt to Equity Ratio of the Eveready Industries Ltd for the financial Year 2019-20 is
0.49. The Debt to Equity ratio of the company for the first 4 year has increased and fallen
in current financial year 2019-20.
 The Ideal debt to equity is estimated to be 1:1. Since the company debt to equity ratio is
below standard, the company has not relied much on outside source for raising long term
fund.
 It can be seen that company has been steadily increasing their reliability from outside
source.

b. Interest Coverage Ratio:

 The Interest coverage ratio of the Eveready Industries India Ltd for the financial year
2019-20 is 1.97. The interest coverage ratio of the company for the past 5 years has
decreased.
 It implies the decreasing availability of the company to pay interest on long term
borrowings.
 The company Interest coverage ratio is not too bad as it can easily cover its interest.
Although the company needs to increase its Interest coverage ratio in order to make better
solvency position.
 Overall the firm has good solvency position.

3. Turnover Ratio:

Turnover Ratio
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Assets Turnover Ratio 1.17 1.68 1.41 1.24 0.97
Inventory Turnover Ratio 5.57 4.77 4.85 5.77 5.76
Debtor Turnover Ratio 23.34 18.38 14.43 12.91 15.57
Table 5:Source-Moneycontrol.com

22
 Turnover Ratio
25
20
15
10
5
0

2015-16 2016-17 2017-18 2018-19 2019-20

Assets Turnover Ratio Inventory Turnover Ratio Debtor Turnover Ratio

Figure 4:Tornover Ratio of Eveready Industries India Ltd

Interpretation:

a. Assets Turnover Ratio:

 The Assets Turnover Ratio of Eveready Industries Ltd for the financial year 2019-20 is
0.97 times. It implies that Net sale of the company is less than the average total assets for
the financial year 2019-20.
 In the past 5 year performance, the Assets Turnover Ratio of the Eveready Industries
India Ltd has decreased. Thus, the efficiency of company using the assets has decreased
over the period of 5 years.
 The company is required to increase its net sale in order to increase its Assets Turnover
ratio.

b. Inventory Turnover ratio:

 The Inventory Turnover Ratio of the Eveready Industries India Ltd for the financial year
2019-20 is 5.76 times. It implies that the company can 5.76 times able to replace the
inventories that it has sold.
 In the past 5 years performance, the Inventory turnover ratio of the company has
increased. It is due to decrease in inventory of the firm as compare to its previous
financial year.
 The company is required to increase both its sale and inventory to boost the Inventory
turnover ratio.

c. Debtor Turnover Ratio:

 The Debtor Turnover Ratio of the Eveready Industries India Ltd for the financial Year
2019-20 is 15.57 times. The company is able to convert 15.57 times the credit sale into
cash.
 In the past 5 year performance, the debtor turnover ratio of the company has decreased. It
has increased in current financial year 2019-20 as compare to FY 2018-19 due to
decrease in debtor. The debtor has fallen due to fall in sale.
 It implies fall in efficiency of the company to quickly covert its credit sale into cash.

23
 Over all there is fall in efficiency to manage assets of the company. The company is
required to increased its Net sale.

4. Profitability Ratio:

Turnover Ratio
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Gross Profit Ratio(%) 9.71 10.54 8.59 10.85 13.86
Net Profit Ratio(%) 3.82 6.90 3.75 3.24 14.82
Return on Equity(%) 7.67 32.34 15.89 12.54 32.23
Return on Assets(%) 4.50 11.62 5.30 4.00 14.22
Table 6:Source-Moneycontrol.com

Profitability Ratio
40

30

20

10

0 2015-16 2016-17 2017-18 2018-19 2019-20

Gross Profit Ratio Net Profit Ratio Return on Equity Return on Assets

Figure 5:Profitbility Ratio of Eveready Industries India Ltd

Interpretation:

a. Gross Profit Ratio:

 The Gross Profit Ratio of Eveready Industries India Ltd for the financial Year 2019-20 is
13.86. As compare to its past 5 year’s performance, Gross profit ratio has increased for
the financial year 2019-20.
 It implies that the profitability of the company has increased in relation to its sale. It
indicates the decreased in cost of goods sold of the company.

b. Net Profit Ratio:

 The Net Profit Ratio of the Eveready Industries India Ltd for the financial year 2019-20
is 14.82. As compare to its past 5 year’s performance, the net profit of the company has
increased for the financial year 2019-20.
 It implies that company is able to achieve satisfactory return on its investment.

c. Return on Equity:
 The Return on Equity of the Eveready Industries India Ltd for the financial year 2019-20
is 32.23. As compare to its previous year’s performance, the Return on Equity has

24
 increased but in the past 5 year’s performance, there is lot of volatility in Return on
Equity of the company.
 It implies the increased in profitability of company in relation to the equity in current
financial year 2019-20 as compared to previous financial year 2018-19.
 The increased in Return on Equity implies the increased in the company efficiency to
generate profit without needing as much capital and vice-versa. Raising return on Equity
is usually to solve problem.

d. Return on Assets:
 The Return on Assets of the Eveready Industries India Ltd for the financial year 2019-20
is 14.22. As compare to the previous 5 year’s performance, the Return on Assets has
increased but before FY 2019-20 , the Return on Assets of the company was falling.
 It implies that in the financial year 2019-20 the company is able to increase its
profitability in relation to assets employed.
 The company had falling Return in Assets prior to 2019-20 indicating that decrease in
profitability of the firm in relation to assets employed but the company has manage to
stop the falling ROA in the current financial year.

5. Capital Structure Ratio:

Turnover Ratio
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Earnings Per share 6.97 12.88 7.53 6.50 24.70
Price Earnings Ratio 33.34 20.36 49.77 29.55 2.04
Dividend Per share 2.00 1.00 1.50 0.00 0.00
Table 7:Sources- Moneycontrol.com

Capital Structure Ratio

60
50
40
30
20
10
0

2015-16 2016-17 2017-18 2018-19 2019-20

Earning Per Share Price Earnings Ratio Dividend Per Share Series4

Figure 6:Capital Structure Ratio of Eveready Industries India Ltd

Interpretation:

a. Earnings Per Share:

25
 The Earnings Per Share of the Eveready Industries India Ltd for the financial year 2019-
20 is 24.70. As compare to its past 5 year’s performance, Earning per share of the
company has increased in financial year 2019-20.
 It implies that increase in the earning power of the company in the current financial year
as compare to prior financial years.
 Prior to current financial year, the Earnings Per Share of the company was falling. It
implies falling earning power of the firm.
 The company is required to bring consistency to increase Earning Per Share in order to
increase overall profitability of the company.

b. Price Earnings Ratio:

 The Price Earnings Ratio of the Eveready Industries India Ltd for the financial year 2019-
20 is 2.04. As compare to its past 5 year performance, Price Earnings ratio has decreased
in the financial year 2019-20. The PE ratio 2.04 means the investors the willing to pay
2.04 times for the share.
 The fall in PE ratio of the company implies the fall in the market price of the share.

c. Dividend per share:

 The Dividend Per Share of the Eveready Industries India Ltd for the financial year 2019-
20 is 0. As compare to past 5 year’s performance, the Dividend Per share had fallen to
zero in the financial year 2019-20.
 It implies that company did not paid dividend to its investor for the financial year 2018-
19 and 2019-20.
 The payment of dividend to investor helps the company to retain its investor. The nil
dividend per share does not always mean bad as company might have used its profit to
reinvest in its business.

26
 Chapter Six

Finding and suggestion

1. The net working capital of the company was negative in the financial year 2019-20. Thus
implies the shortage of short term fund to cover its expenses. The Net working capital of
the company positive for the last 4 years. The net working capital of the company has
increased to Rs. 298.45 in 2019-20 from Rs. (6.07) in 2015-16. The company needs to
increase its current assets.
2. In the financial year 2015-16, Eveready Industries India Ltd had negative working capital
turnover ratio of (217.88) times. Thus signifies poor liquidity of the company. The
company has been able to turn negative working capital turnover ratio to positive of 4.06
times in financial year 2019-20. It company needed to infuse funds in business.
3. The current ratio of the company is below ideal ratio of 2:1. The current ratio of the
company is increasing for the past 5 years. Thus signifies that liquidity position is
improving and it can meets its creditor demand in better way. The company is required to
improve its liquidity position.
4. The quick ratio of the company is below ideal ratio of 1:1 except the financial year 2019-
20. The company has manage to keep quick ratio increasing for the past 5 years.
5. The company debt to equity ratio is below standard of 1:1, the company has not relied
much on outside source for raising long term fund.. With the increasing debt to equity
ratio, it can be said that company has been steadily increasing their reliability from
outside source for the first 4 year but fallen in financial year 2019-20.
6. The company Interest coverage ratio has fallen in the financial year 2019-20. It implies
the decreasing availability of the company to pay interest on long term borrowings. The
company is required to increase its net profit.
7. In the past 5 year performance, the Assets Turnover Ratio of the Eveready Industries
India Ltd has decreased. Thus, the efficiency of company using the assets has decreased
over the period of 5 years. In order to improve its efficiency the company needs to
increase its net profit by increasing net sale.
8. In the past 5 years performance, the Inventory turnover ratio of the company has
increased. It is due to decrease in inventory of the firm as compare to its previous
financial year.
9. In the past 5 year performance, the debtor turnover ratio of the company has decreased. It
has increased in current financial year 2019-20 as compare to FY 2018-19 due to
decrease in debtor. The debtor has fallen due to fall in sale. It implies that the profitability
of the company has increased in relation to its sale. It indicates the decreased in cost of
goods sold of the company.

27
10. The Gross profit of Eveready Industries India Ltd has increased for the past 5 years. The
profitability of the company has increased in relation to its sale. It indicates the decreased
in cost of goods sold of the company.
11. The Net Profit of the company has increased in the financial year 2019-20 although there
is fall in net sale. It is because of income from exceptional item which has increased as
compare to prior years. Overall the profitability of the company has increased.
12. In the past 5 years performance of company, there is volatility in return on Equity of
company. In the Financial year 2019-20, the Return in Equity has increased as compare to
FY 2018-19. It implies the increased in profitability of company in relation to the equity
in current financial year 2019-20 as compared to previous financial year 2018-19.
13. The Return on Assets of Eveready Industries India Ltd has increase in 2019-20 but prior
of 2019-20, it was falling. It implies that in the financial year 2019-20 the company is
able to increase its profitability in relation to assets employed.
14. Earnings per share of the company has increased in financial year 2019-20. It implies that
increase in the earning power of the company in the current financial year as compare to
prior financial years. Prior to current financial year, the Earnings Per Share of the
company was falling. It implies falling earning power of the firm.
15. The Price Earnings ratio is fallings. It indicates the fall in market price of the share.
Falling PE ratio is fails to retain investors for longer period of time.
16. The Dividend Per share had fallen to zero in the financial year 2019-20. It implies that
company did not paid dividend to its investor for the financial year 2018-19 and 2019-20.

28
 Chapter Seven

Conclusion
1. Net Working Capital:
The net working capital of the company was negative in FY 2015-16 but after that FY year
the net working capital of the company is positive and increasing. It meaning the company
ability payoff short term liabilities has increased.

2. Liquidity ratio:
Current Ratio and Liquid Ratio are both below standard but increasing contentious for the
past 5 years . It shows improving short term financial position of the company .

3. Solvency Ratio:
Debt to Equity Ratio and interest coverage ratio both have fallen. The firm has relied less on
outside source for raising long term fund. The long term financial position is falling.

4. Turnover Ratio:
Asset turnover ratio and Debtor turnover ratio have fallen. Inventory turnover ratio has
increased due to decrease in inventory in relation to decrease net profit. The efficiency of
company to utilize assets and resources is falling.

5. Profitability Ratio :
Gross profit ratio, Net profit ratio, Return on Equity and Return on Assets have increase.
It implies the long term earning power of company have increase.

6. Capital Structure Ratio:

Earnings Per Share has increase, Price earnings ratio and Dividend per share both have fallen.
The company is using its profit to reinvest rather than paying dividend and Market price per
share has fallen in financial year 2019-20 due to Covid-19 pandemic.

29
 Bibliography

This is as follows:

1. For book: Management Accounting Principle and Practise- Shashi K. Gupta , R.K.
Sharma
2. For Journal: India Dry cell Batteries Market Overview 2022-2025
3. For Standalone URLs:
 Www.moneycontrol.com
 www.nseindia.com
 www.google.com
 www.yahoofinance
 www.evereadyindia.com
 https://kredx.com/blog/what-are-the-3-working-capital-financing-policies/
 https://www.bonafideresearch.com/product/200630102/India-Dry-Cell-Battries-
Market-2020-2025

30
 Annexure
Eveready Industries India Previous Years »
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 36.34 36.34 36.34 36.34 36.34
Total Share Capital 36.34 36.34 36.34 36.34 36.34
Reserves and Surplus 520.78 340.35 307.92 253.18 623.31
Total Reserves and Surplus 520.78 340.35 307.92 253.18 623.31
Total Shareholder’s Funds 557.13 376.69 344.27 289.53 659.66
NON-CURRENT LIABILITIES
Long Term Borrowings 148.47 209.95 85.45 94.53 66.96
Deferred Tax Liabilities [Net] 5.44 4.86 6.23 1.21 11.00
Other Long Term Liabilities 24.05 3.95 3.95 3.95 3.95
Long Term Provisions 5.84 5.80 6.41 6.53 5.45
Total Non-Current Liabilities 183.80 224.56 102.03 106.23 87.36
CURRENT LIABILITIES
Short Term Borrowings 125.41 84.52 103.39 72.72 71.78
Trade Payables 184.82 256.02 327.12 239.91 213.42
Other Current Liabilities 193.97 220.35 140.84 83.77 72.04
Short Term Provisions 16.82 17.62 13.80 13.50 19.66
Total Current Liabilities 521.02 578.51 585.15 409.90 376.89
Total Capital And Liabilities 1,261.95 1,179.76 1,031.45 805.65 1,123.90
ASSETS
NON-CURRENT ASSETS
Tangible Assets 320.55 332.12 354.21 331.21 229.82
Intangible Assets 7.96 10.45 3.17 2.89 464.99
Capital Work-In-Progress 2.82 4.74 2.77 3.18 22.07
Intangible Assets Under Development 0.15 0.00 0.07 3.22 0.00
Other Assets 0.00 0.06 0.06 0.06 0.00
Fixed Assets 331.47 347.36 360.27 340.56 716.88
Non-Current Investments 10.16 10.16 2.66 2.66 2.66
Long Term Loans And Advances 0.89 1.13 1.28 1.54 22.87
Other Non-Current Assets 99.96 102.74 42.72 41.29 10.68
Total Non-Current Assets 442.48 461.39 406.92 386.04 753.08
CURRENT ASSETS
Inventories 210.38 252.80 300.11 284.30 237.41
Trade Receivables 50.38 105.30 120.61 83.87 70.54
Cash And Cash Equivalents 10.07 5.20 4.08 3.10 2.69
Short Term Loans And Advances 423.35 231.31 89.57 7.41 52.76
OtherCurrentAssets 125.30 123.76 110.17 40.94 7.42
Total Current Assets 819.47 718.36 624.53 419.61 370.82
Total Assets 1,261.95 1,179.76 1,031.45 805.65 1,123.90
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 359.23 519.41 236.07 162.07 181.59
CIF VALUE OF IMPORTS
Raw Materials 0.00 0.00 0.00 0.00 110.57

31
Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.09
Trade/Other Goods 0.00 0.00 0.00 0.00 80.09
Capital Goods 0.00 0.00 0.00 0.00 8.77
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 1.66 1.88 2.13 2.19 2.49
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign Currency - - - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - 0.07 0.10 16.37
Other Earnings 0.13 0.11 - - -
BONUS DETAILS
Bonus Equity Share Capital 24.22 24.22 24.22 24.22 24.22
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market
- 0.00 0.00 0.00 0.00
Value
Non-Current Investments Unquoted Book
10.16 10.16 2.66 2.66 49.12
Value
CURRENT INVESTMENTS
Current Investments Quoted Market
- - - - -
Value
Current Investments Unquoted Book
- - - - -
Value

Source : Dion Global Solutions Limited

Eveready Industries India Previous Years »

Standalone Yearly Results ------------------- in Rs. Cr. -------------------

Mar '20 Mar '19 Mar '18 Mar '17 Mar '16

Net Sales/Income from operations 1,210.93 1,457.73 1,456.35 1,355.18 1,322.51

Other Operating Income -- -- -- -- 0.78
Total Income From Operations 1,210.93 1,457.73 1,456.35 1,355.18 1,323.30
EXPENDITURE
Consumption of Raw Materials 446.38 496.91 504.32 544.67 576.15
Purchase of Traded Goods 271.37 385.41 407.41 344.67 236.23
Increase/Decrease in Stocks 9.68 42.76 -8.13 -51.69 16.36
Power & Fuel -- -- -- -- --
Employees Cost 149.46 156.90 167.71 144.22 131.56
Depreciation 28.97 21.84 19.24 14.93 14.09
Excise Duty -- -- -- -- --
Admin. And Selling Expenses -- -- -- -- --
R & D Expenses -- -- -- -- --
Provisions And Contingencies -- -- -- -- --
Exp. Capitalised -- -- -- -- --
Other Expenses 212.91 252.98 279.68 240.00 259.00
P/L Before Other Inc. , Int., Excpt. Items &
92.16 100.93 86.11 118.37 89.90
Tax
Other Income 46.73 35.41 19.77 9.57 8.10
P/L Before Int., Excpt. Items & Tax 138.89 136.34 105.88 127.94 98.00
Interest 70.41 53.99 28.70 23.23 30.50

32
P/L Before Exceptional Items & Tax 68.48 82.36 77.18 104.71 67.50
Exceptional Items 151.59 -23.25 -- -- --
P/L Before Tax 220.07 59.10 77.18 104.71 67.50
Tax 40.51 11.85 22.44 11.07 16.85
P/L After Tax from Ordinary Activities 179.57 47.26 54.74 93.63 50.65
Prior Year Adjustments -- -- -- -- --
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For the Period 179.57 47.26 54.74 93.63 50.65
Equity Share Capital 36.34 36.34 36.34 36.34 36.34
Reserves Excluding Revaluation
520.78 340.35 307.92 253.18 623.31
Reserves
Equity Dividend Rate (%) -- -- 30.00 20.00 40.00
EPS Before Extra Ordinary
Basic EPS 24.70 6.50 7.53 12.88 6.97
Diluted EPS 24.70 6.50 7.53 12.88 6.97
EPS After Extra Ordinary
Basic EPS 24.70 6.50 7.53 12.88 6.97
Diluted EPS 24.70 6.50 7.53 12.88 6.97
Public Share Holding
No Of Shares (Crores) -- -- -- -- --
Share Holding (%) -- -- -- -- --
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of shares (Crores) -- -- -- -- --
- Per. of shares (as a % of the total sh. of
-- -- -- -- --
prom. and promoter group)
- Per. of shares (as a % of the total Share Cap.
-- -- -- -- --
of the company)
b) Non-encumbered
- Number of shares (Crores) -- -- -- -- --
- Per. of shares (as a % of the total sh. of
-- -- -- -- --
prom. and promoter group)
- Per. of shares (as a % of the total Share Cap.
-- -- -- -- --
of the company)
Notes |202003 |201903 |201803 |201703 |201603

Source : Dion Global Solutions Limited

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 1,198.15 1,442.00 1,470.83 1,417.33 1,393.11
Less: Excise/Sevice Tax/Other Levies 0.00 0.00 18.88 63.51 70.60
Revenue From Operations [Net] 1,198.15 1,442.00 1,451.95 1,353.81 1,322.51
Other Operating Revenues 12.78 15.73 4.40 1.37 0.78
Total Operating Revenues 1,210.93 1,457.73 1,456.35 1,355.18 1,323.30
Other Income 46.73 35.41 19.77 9.57 8.10
Total Revenue 1,257.66 1,493.14 1,476.11 1,364.75 1,331.40
EXPENSES
Cost Of Materials Consumed 446.38 496.91 504.32 544.67 576.15

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Purchase Of Stock-In Trade 271.37 385.41 407.41 344.67 236.23
Changes In Inventories Of FG,WIP And
9.68 42.76 -8.13 -51.69 16.36
Stock-In Trade
Employee Benefit Expenses 149.46 156.90 167.71 144.22 131.56
Finance Costs 70.41 53.99 28.70 23.23 30.50
Depreciation And Amortisation Expenses 28.97 21.84 19.24 14.93 30.59
Other Expenses 212.91 252.98 279.68 240.00 242.50
Total Expenses 1,189.17 1,410.79 1,398.93 1,260.04 1,263.90
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before
68.48 82.36 77.18 104.71 67.50
Exceptional,
ExtraOrdinary Items And Tax
Exceptional Items 151.59 -23.25 0.00 0.00 0.00
Profit/Loss Before Tax 220.07 59.10 77.18 104.71 67.50
Tax Expenses-Continued Operations
Current Tax 39.93 12.76 17.33 10.08 14.72
Less: MAT Credit Entitlement 0.00 0.00 0.00 3.41 0.00
Deferred Tax 0.58 -0.91 5.12 4.41 2.14
Total Tax Expenses 40.51 11.85 22.44 11.07 16.85
Profit/Loss After Tax And Before
179.57 47.26 54.74 93.63 50.65
ExtraOrdinary Items
Profit/Loss From
179.57 47.26 54.74 93.63 50.65
Continuing
Operations
Profit/Loss For The Period 179.57 47.26 54.74 93.63 50.65
Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 24.70 6.50 7.53 12.88 6.97
Diluted EPS (Rs.) 24.70 6.50 7.53 12.88 6.97
VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS
Imported Raw Materials 0.00 0.00 0.00 0.00 197.18
Indigenous Raw Materials 0.00 0.00 0.00 0.00 378.98
STORES, SPARES AND LOOSE TOOLS
Indigenous Stores And Spares 0.00 0.00 0.00 0.00 1.71
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0.00 10.90 0.00 7.27 14.54
Tax On Dividend 0.00 2.24 0.00 1.48 2.96
Equity Dividend Rate (%) 0.00 0.00 30.00 20.00 40.00

Source : Dion Global Solutions Limited

Cash Flow ------------------- in Rs. Cr. -------------------

Mar 20 Mar 20 Mar 19 Mar 19 Mar 18

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit/Loss Before Extraordinary

68.48 0.00 59.10 0.00 77.18
Items And Tax
Net CashFlow From Operating Activities 109.95 0.00 75.13 0.00 81.33
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35
Net Cash Used In Investing Activities -15.85 0.00 -144.64 0.00 -101.26
Net Cash Used From Financing Activities -89.24 0.00 151.21 0.00 -35.05
Net Inc/Dec In Cash And
4.86 0.00 81.71 0.00 -54.98
Cash Equivalents
Cash And Cash Equivalents Begin of Year 4.69 0.00 -95.03 0.00 -40.06
Cash And Cash Equivalents End Of Year 9.55 0.00 -13.33 0.00 -95.03

Source : Dion Global Solutions Limited

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