C-01 Aakriti Singh

C-41 Priyadarshini Nayak

C-46 Shaik Yasmin Naaz
C-52 Smriti Dureha
Eveready Industries
• A part of the Kolkata-based Williamson Magor Group
• Created in 1994
• Country’s largest dry-cell battery maker
• Interests in tea, engineering and consumer products
• EIIL’s batteries segment accounted for 50% of its turnover of Rs
1,475 crore in FY18
• It has a market capitalization of ₹5.2b
• Panasonic and Nippo are the other two main competitors in the
organised sector
• Distributes electrical products, small home appliances
• Distributes confectioneries products under the Jollies brand
name
• Current auditor - Singhi & Co
 • Dry-cell battery business suffered headwinds due to changing technology,
cheap imports.
• Huge debt burden, weakened financial flexibility and low liquidity buffers
led to -
• Limiting the ability to enter new businesses by leveraging its
distribution strength.
• Company’s rating being downgraded to ‘BBB-‘ from ‘A+’ by India
Ratings and Research
• Distribution costs rose due to an increase in crude oil prices, weakening
rupee.

Problems with • Bulk import of raw materials from China with weak rupee triggered the
input costs to go higher.

Eveready
• Rising debt hampered company's profitability.
• PWC resigned citing reservations on June 29 certain inter-group
transactions made by promoter group made during FY19
• Difference of opinion between PwC and Eveready on the recoverability of
inter-corporate deposits given to group companies and corporate
guarantees given on behalf of group entities amounting to Rs 512.26
crore.
• Yes Bank had acquired 9.47% shares of Eveready by invoking pledged
shares following loan default by McLeod
• HC had passed an injunction order restraining from
• selling, transferring, alienating, disposing or creating third party
rights on any of its assets
• carrying out any change in its capital structure, or any corporate or
debt restructuring.
• Deal finalised between Duracell and Eveready pegged EIIL’s enterprise
value (EV) at roughly Rs 2,500 crore
• The deal valued it at twice the current EV. 
• EV of EIIL at the time of deal was Rs 700 crore and market cap Rs 550
crore.
• The deal included manufacturing plants, distribution networks and
the brand name, for Rs 1,600-1,700 crore.
• Current Enterprise Value – 946 Crore

Market Debt Cash and Cash Enterprise Value

Capitalization Equivalents
474 crore + 532.88. -- 60.88 = 946 Crore
 RATIOS
PARTICULARS 2019 2018
Solvency Ratios
Debt to Equity Ratio 1.09 .77

Interest Coverage Ratio 2.11 3.58

Liquidity Ratios
Current Ratio 1.22 1.07

Quick Ratio 0.83 0.58

Profitability Ratios

Profit Margin 3.23 3.6

Return on Equity 13.55 16.82

 Particulars 2019 2018

Return on Assets 4.12 5.5

Gross Margin

Activity Ratios

Asset Turnover (days) 1.27 1.53

Receivables turnover (days) 31.09 25.29

Inventory turnover (days) 66.97 72.31

Price Ratios

Dividend Payout Ratio - -

Comparison of Cash generated from operations with Profit after tax

Particulars 2019 2018

Net cash generated from operating 7,00.755 8,07.929

activities
PAT 4,78.257 5,31.589
 • Profit of 8955.38 lakhs on sale of land in Chennai to
Olympia Group
• As of 31 December 2019, Eveready has had quality
earnings due to large one-off gain of ₹96.09 crore
• Growing Profit Margin: EVEREADY's current net profit
margins (9%) are higher than last year (3.3%).
• Revenue from operations (Gross) has fallen from 40,8.169
as on 31/12/2018 to 317.4201 crore as on to 31/12/2019
• High ROE: Whilst EVEREADY's Return on Equity(29.82%)
Quarter 3 - is high, this metric is skewed due to their high level of debt.

Returns and • The turnover for Q3 was lower than previous year -

Earnings • Lighting, appliances segment were adversely

impacted
• Discontinuance of the packet tea segment decreased
turnover.
• However the core categories of batteries and
flashlights did not degrow
• Lighting, appliance segment impacted by supply
constraints, price corrections demand augmentation.
• Weak consumption demand and portfolio
consolidation.
 The Company adopted Ind AS 116 with retrospective effect.

'Right-of-use' assets amounting to 4,109.79 Lakhs includes lease

prepayment 1,212.28 Lakhs and 'Lease liabilities' amounting to 2,897.51
Lakhs

ADOPTION Operating lease expenses charged as lease rentals in corresponding period

last year, now recognized in the quarter ended December 31, 2019 as
IND AS 116 depreciation expense relating to the right-of-use asset and finance cost for
interest accrued on lease liability

Due to adoption of standard, profit before tax for the quarter ended
December 31, 2019 has decreased by 35.50 Lakhs

Earnings per share decreased by 0.04 per share

 Stake Holding

• Institutional investors hold 38% of

the stock
• Indicate that the company has a
certain degree of credibility in the
investment community
• Insiders own ₹16.2 crore worth of
stock in the ₹520 crore company
• In January 2019 promoters B M
Khaitan-led Williamson
Magor’s stake came down from
45% to 17.48%
 Particulars Ratio
VALUATION as PB Ratio 1.24x
of 31 December
2019 Earnings Per ₹16.48
Share

PE Ratio 4.15x
 Debt to Equity History
DATE TOTAL
EQUITY
TOTAL
DEBT
CASH &
SHORT TERM
and Analysis
INVESTMENTS
Debt Level: EVEREADY's debt to equity
ratio (126.4%)
is considered high.
31/12/2019 4,01.601 5,32.889 75.096 Reducing Debt: EVEREADY's debt to equity
ratio has increased from .36 to 1.26 over
the past 5 years.
30/09/2019 4,01.601 5,07.735 75.096
Debt Coverage: EVEREADY's debt is not
well covered by operating cash
30/06/2019 3,75.899 4,34.153 53.676 flow(7,0.0755) (18.7%).
Interest Coverage: EVEREADY's interest
31/03/2019 3,75.899 4,08.028 6.726 payments on its debt are not well
covered by EBIT (2.2x coverage).
 DU PONT ANALYSIS
• It started by DU PONT Corporation in 1920
• Framework for analysing the fundamental performance of the company.
• It is a tool to examine the Return on Equity.
• Managers use Du Pont analysis to identify the strengths or weaknesses
• It analyses the major contributory to Return on Equity.
• It focuses on three components:
1. Profit Margin
2. Total Asset Turnover
3. Financial Leverage
 DU PONT ANALYSIS
ROE =  

ROE =

ROE = NET PROFIT MARGIN * ASSET TURNOVER * EQUITY MULTIPLIER

• 

• – It measures company’s profitability by revealing that how much profit a company

(Return On Equity ) generates with the money invested by the shareholder

THREE CONTRIBUTORY TO ROE

• - It talks about Operating Efficiency. It gives an idea of how much profit is being generated from sales.
(Net Profit Margin)

• - It gives an idea about how management is using its Asset to generate the amount of Sales.
(Asset Turnover) It is an indicator of how profitable a company is relative to its total asset .

• - The percentage of company’s asset that are financed or owed by the shareholder. Conversely, this ratio also shows
( Equity Multiplier/ the level of debt financing is used to acquire asset and maintain operations. It measures the leverage of a company.
Financial Leverage)
 CALCULATIONS

•  ROE = *100

= 12.72 %

• ROE = X
= 3.174 x 1.247 x 3.211
= 12.72%
• ROE is percentage of last year’s earning against the book value of shareholder’s equity.
• ROE of 12.72% implies that ₹ 0.13 returned on every ₹ 1 invested , so higher the ROE higher
profit company is making
• The industry in working with its in-line industry average of 12.60% and sector average of
12.70%.
• ROE is measured against cost of equity in order to determine the efficiency of Eveready
Industries India’s equity capital deployed.
• ROE of Eveready has fall by 0.83% from the last year.
• The current ROE shows that the company has not taken too much leverage and has ability to
grow its profit
• ROE of company is very useful indicator of business quality to know about companies high
return without too much of debt
• Sale of parcel land in Chennai had helped Eveready industries to increase it PBT to Rs
110 crores.(Increased the stock prices)
• Recently the company has reported that there net profit has increased in the past 9
months

• Eveready’s core business of battery registered a decline of about 16% in its operating
revenue
• The leverage of the company will decline as most of the proceeds of the business will
be used for the repayment of the debt.
 M SCORE ANALYSIS
EVEREADY INDUSTRIES LIMITED

₹ Lakhs
PARTICULARS 31-Mar-19 31-Mar-18 31-Mar-17
PPE 33,211.51 35,420.83 33,121.09
TRADE RECEIVABLES 13,604.33 12,060.57 8,386.66
 Professor Messod Beneish developed Beneish M-score model in
CURRENT ASSETS 74,946.07 62,447.37 42,189.80
1999 as a complementary forensic tool to Altman Z-score model
CURRENT LIABILITIES 60,687.23 58,398.20 40,955.61
with the aim of protecting shareholders, creditors and bankers in DEPRECIATION 2,183.69 1,924.29 1,493.03
their analyses.
TOTAL ASSETS 1,20,732.93 1,02,874.22 80,528.58
 Beneish M-score is a financial forensic tool often used to detect
TOTAL OUTSIDE LIABILITIES 83,143.04 68,601.62 51,578.43
areas of possible manipulation on the company’s financial
PAT 4,782.57 5,315.89 9,532.84
statements by forensic accountants, auditors and regulators
CFO 8,601.03 10,401.43 8,896.72
(particularly the Securities And Exchange Commission - SEC).
SALES/REVENUE FROM
 Beneish model is used to discriminate between companies that 1,50,664.14 1,47,526.04 1,42,075.26
OPERATIONS
have manipulated their financial statements. SALES,GENERAL AND ADMIN
 The score is determined from eight independent variables and an 21,580 24,920 20,530
EXPENSES
intercept to detect whether the company’s earnings have been COST OF GOODS SOLD 1,16,530 1,09,170 1,00,460
manipulated by management. GROSS PROFIT 34,134.14 38,356.04 41,615.26
OTHER INCOME 3,531.15 1,972.99 957.5
 The eight variables were taken from the company’s consolidated financial statements and used to
determine M-score of this study. An M-score obtained that is greater than -2.22 is an indication that
the company’s financial statements may have been manipulated.
 Hence, if the score obtained from the computation of the eight variables from EVEREADY’s
financial statements is greater than the cut-off point of negative 2, then it implies that, the financial
statements were manipulated.
 This suggests that, the financial statements prepared by management should be investigated further
or have to be investigated further for financial fraud.
 M-score model is a probability model, and as such cannot detect 100% manipulation.
 Beneish identified that it is possible to determine 76% manipulators accurately and 17.5%
inaccurately as non-manipulator.
 The eight variables used to develop the M-score model are:
 DSRI: Day Sales in Receivable Index
 GMI: Gross Margin Index
 AQI: Assets Quality Index
 DEPI: Depreciation Index
 SGAI: Sales, General and Administrative Expenses Index
 LVGI: Leverage Index
 TATAI: Total Accruals to Total Assets Index
 DAYS’ SALES IN RECEIVABLES INDEX
(DSRI)
𝑇𝑅𝐴𝐷𝐸 𝑅𝐸𝐶𝐸𝐼𝑉𝐴𝐵𝐿𝐸𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅
  𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅 𝑁𝐸𝑇 𝑆𝐴𝐿𝐸𝑆
𝑋 0.92
𝑇𝑅𝐴𝐷𝐸 𝑅𝐸𝐶𝐸𝐼𝑉𝐴𝐵𝐿𝐸𝑆 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅
𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅 𝑆𝐴𝐿𝐸𝑆

 DSRI is used to measure the changes made in respect of receivables consistent with the changes
made in respect of sales.
 A DSRI score of 1.031 or below indicates that, the financial statements in respect of the DSRI were
not manipulated but a score of 1.465 and above indicates that, the financial statements in respect of
the DSRI have been manipulated.
 This can suggest either deteriorating economic conditions at a company (i.e. the company is
incentivizing sales by extending more lenient credit terms to customers) the company is having
difficulty in the collection of cash from trade debtors or aggressive accounting (the company is
recognizing revenue before it is earned).
 Therefore, a sharp rise in the DSRI score provides signals to the forensic investigators that, the
financial statements are manipulated or terms of credit have changed.
 GROSS MARGIN INDEX (GMI)

𝐺𝑅𝑂𝑆𝑆 𝑃𝑅𝑂𝐹𝐼𝑇 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅

  𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅 𝑁𝐸𝑇 𝑆𝐴𝐿𝐸𝑆
𝑋 0.528
𝐺𝑅𝑂𝑆𝑆 𝑃𝑅𝑂𝐹𝐼𝑇 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅
𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅 𝑆𝐴𝐿𝐸𝑆

 GMI is used to measure the ratio of a prior year’s GMI to that of the current year.
 The GMI score of 1.041 or lower indicates that gross profit of the current period is
not manipulated but a score of 1.193 indicates that gross profit of the company is
manipulated.
 Earning quality is a very important aspect for evaluating a company’s financial
health.
 This, therefore, creates temptation to manipulate earnings when things are not going
on well.
 Financial research shows that public companies with declining profit margins are
more likely to manipulate their earnings.
 ASSET QUALITY INDEX (AQI)

  𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆 − 𝑃𝑃𝐸 − 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝐴𝑆𝑆𝐸𝑇𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅

𝑋 0.404
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆 − 𝑃𝑃𝐸 − 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝐴𝑆𝑆𝐸𝑇𝑆 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅

 AQI is used to measure the proportion of total assets – property, plant and
equipment – current assets of the current year to the previous year.
 When an AQI ratio is greater than 1.0 indicates that the company's noncurrent
assets (such as goodwill, intangibles, and other items of uncertain long-term
value) are increasing as a percentage of all assets year over year.
 The higher AQI is over 1, the more these soft assets of uncertain quality have
grown compared to the more tangible current assets.
 Financial research shows that this decrease in asset quality can be the result of
additional expenses being capitalized to avoid writing-off to the statement of
comprehensive income in order to preserve profit.
 SALES GROWTH INDEX (SGI)

  𝑆𝐴𝐿𝐸𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅

𝑋 0.892
𝑆𝐴𝐿𝐸𝑆 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅

 SGI is used to measure sales in the current year over the sales of a previous year.
 A score of 1.134 or below is an indication of non-manipulation and a score above
1.607 indicates that, the sales figures have been manipulated.
 It’s observed that, companies with high growth rate find themselves highly
motivated to commit fraud when the trends reverse.
 In such situations, a potential increase beyond a certain percentage may cause
suspicion.
 However, taken alone, high sales growth is by no means a negative sign; but, when a
company with high sales growth also scores poorly on other variables measured by
the Beneish model, it can be a significant warning sign to investors.
 DEPRECIATION INDEX (DEPI)

𝐷𝐸𝑃𝑅𝐸𝐶𝐼𝐴𝑇𝐼𝑂𝑁 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅

  𝐷𝐸𝑃𝑅𝐸𝐶𝐼𝐴𝑇𝐼𝑂𝑁 + 𝑃𝑃𝐸 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅
𝑋 0.115
𝐷𝐸𝑃𝑅𝐸𝐶𝐼𝐴𝑇𝐼𝑂𝑁 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅
𝐷𝐸𝑃𝑅𝐸𝐶𝐼𝐴𝑇𝐼𝑂𝑁 + 𝑃𝑃𝐸 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅

 DEPI is used to measure the ratio of the depreciation expense against the
company’s value of PPE in the current year against that of the previous year.
 A DEPI ratio of 1.001 or lower is an indication that, DEPI has not been
manipulated.
 However, a score above 1.077 is an indication that, the company's effective
depreciation rate has slowed year over year.
 The higher the DEPI is, the more the depreciation rate has decreased.
 This suggests that the company has increased its estimate of its assets' useful lives,
thereby slowing the recognition of expenses and (perhaps artificially) increasing the
appearance of income
 SALES, GENERAL, AND ADMINISTRATIVE EXPENSES
INDEX (SGAI)

𝑆𝐴𝐿𝐸𝑆 , 𝐺𝐸𝑁𝐸𝑅𝐴𝐿 ∧ 𝐴𝐷𝑀𝐼𝑁𝐼𝑆𝑇𝑅𝐴𝑇𝐼𝑂𝑁 𝐸𝑋𝑃𝐸𝑁𝑆𝐸𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅

  𝑆𝐴𝐿𝐸𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅
𝑋 − 0.172
𝑆𝐴𝐿𝐸𝑆 , 𝐺𝐸𝑁𝐸𝑅𝐴𝐿 ∧ 𝐴𝐷𝑀𝐼𝑁𝐼𝑆𝑇𝑅𝐴𝑇𝐼𝑂𝑁 𝐸𝑋𝑃𝐸𝑁𝑆𝐸𝑆 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅
𝑆𝐴𝐿𝐸𝑆 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅

 SGAI is used to measure the ratio of sales, general and administrative expenses
for the current year over the previous year.
 A score of 1.001 or below is an indication that SGAI has not been manipulated.
However, a disproportionate increase in sales indicates a negative signal about
the company future prospects.
 It represents declining administrative and marketing efficiency.
 Financial research shows that public companies may be more likely to engage in
earnings manipulations to cover up deteriorating operational performance.
 LEVERAGE INDEX (LVGI)

𝑇𝑂𝑇𝐴𝐿 𝑂𝑈𝑇𝑆𝐼𝐷𝐸 𝐿𝐼𝐴𝐵𝐼𝐿𝐼𝑇𝐼𝐸𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅

  𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅
𝑋 − 0.327
𝑇𝑂𝑇𝐴𝐿 𝑂𝑈𝑇𝑆𝐼𝐷𝐸 𝐿𝐼𝐴𝐵𝐼𝐿𝐼𝑇𝐼𝐸𝑆 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆 𝑂𝐹 𝑃𝑅𝐸𝑉𝐼𝑂𝑈𝑆 𝑌𝐸𝐴𝑅

 LVGI is used to measure the company’s ratio in terms of total debt to

total assets for the current year divided over the previous year’s ratio.
 A LVGI greater than 1 implies that there is an increase in leverage
position in the company and that the company has taken more debt to
operate or to run the business.
 TOTAL ACCRUALS TO TOTAL ASSETS
INDEX (TATAI)

 𝑃𝐴𝑇 − 𝑂𝑇𝐻𝐸𝑅 𝐼𝑁𝐶𝑂𝑀𝐸 −𝐶𝐴𝑆𝐻 𝐺𝐸𝑁𝐸𝑅𝐴𝑇𝐸𝐷 𝐹𝑅𝑂𝑀 𝑂𝑃𝐸𝑅𝐴𝑇𝐼𝑂𝑁 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅

𝑋 4.679
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆 𝑂𝐹 𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝑌𝐸𝐴𝑅

 TATAI is used to measure the difference between accounting profit (or loss) and
cash profit (or loss); the difference is then divided by total assets in order to make
the variable comparable between companies of different sizes.
 The growth of TATAI usually indicates that goodwill and amortization numbers in
the financial statements have been tampered with.
 Financial research shows that companies that generate large accruals (accounting-
only profits) are likely to be engaging in earnings manipulation.
EIGHT VARIABLE M-SCORE MODEL = -4.84 + (0.92 x DSRI) + (0.528 x GMI) + (0.404 x AQI) +
(0.892 x SGI) + (0.115 x DEPI) – (0.172 x SGAI) – (0.327 x LVGI) + (4.679 x TATAI)
FIVE VARIABLE M-SCORE MODEL = -6.065 + (0.823 x DSRI) + (0.906 x GMI) + (0.593 x AQI) +
(0.717 x SGI) + (0.107 x DEPI)
PARTICULARS 2018-19 2017-2018
DSRI 1.1045 1.3849
GMI 1.1476 1.1266
AQI 2.5120 0.9594
SGI 1.0213 1.0384
DEPI 0.8352 0.8371
SGAI 0.8479 1.1690
LVGI 1.0327 1.0411
TATAI -0.0609 -0.0686
M SCORE -1.9644 -2.4235
5 VARIABLE M-
-1.8050 -2.5015
SCORE
 Z-SCORE MODEL
• The Altman Z Score model, defined as a financial model to predict the
likelihood of bankruptcy in a company, was created by Edward I. Altman.
• The purpose of the Z Score Model is to measure a company’s financial
health and to predict the probability that a company will collapse within
2 years.
• The lower the score , the more likely the company is to declare
bankruptcy.
• When Z-SCORE is
 Below 1.81 ---- Company is in Financial Distress
 Between 1.81 – 2.99 ----- cautious zone
 Above 3 ------- Safe
 Z-SCORE ANALYSIS
As per Annual Report 2018-19
• 
1) = 1.2 = 0.142254

2) 1.4 = 1.4 = 0.057148

3) 3.3 = 3.3 = 0.282329

4) 0.6 = 0.6 = 0.196447

5) 1.0 = 1.0 = 1.235623

Z – SCORE = 0.142254 + 0.057148 + 0.282329 + 0.196447 + 1.235623 = 1.981567

• Eveready is a leading player in dry cell batteries and flashlights and has a market share of 50% between its
Eveready and Powercell brands.
• PwC India has resigned as an auditor of Eveready Industries India Ltd. (EIIL) citing few transactions worth Rs 62
crore relating to inter-company deposits.
• Net profit declined 13.66% to Rs 47.26 crore in the year ended March 2019 as against Rs 54.74 crore during the
previous year ended March 2018. Sales declined 10.87% to Rs 311.72 crore in the quarter ended March 2019 as
against Rs 349.75 crore during the previous quarter ended March 2018.
• The promoters have been exploring a raising of funds by stake sale. As of March-end, Ind-Ra noted that 49.8 per
cent of the promoter shareholding in EIIL stood pledged.
• Eveready saw a 63% y-o-y decline in net profit to Rs 6.85 crore for the first quarter of FY 2021 from Rs 18.35 crore
in the corresponding period in the previous year.
• Duracell Inc, owned by Warren Buffett’s Berkshire Hathaway, is set to acquire BM Khaitan’s flagship Eveready
Industries’ battery and flashlight business in a slump sale for Rs 1,600-1,700 crore. The deal includes
manufacturing plants, distribution network and the Eveready brand.

Source: https://economictimes.indiatimes.com/industry/services/consultancy-/-audit/pwc-resigns-as-an-auditor-of-eveready-industries-citing-inter-group-
transaction/articleshow/70010488.cms?from=mdr
https://www.business-standard.com/article/markets/eveready-industries-plunges-13-on-credit-ratings-downgrade-119043000155_1.html