Monday, April 27, 2009

Where are the losses coming from?

I was looking at the annual results of Exide Industries for the last five years. I found big losses in the associated companies mentioned in their consolidated profit and loss statement for year 2008 and 2007, Page 192. The big divergence between standalone results and consolidated results started with FY2006 when the standalone company's net profit was around INR 100 Crore and consolidated profits were only INR 72 Crore. Between 2003 and 2005, the associate companies were making profits as shown in annual reports of 2005, Page 141, and 2003, Page 81. The difference between standalone and consolidated results have become quite wide as can be seen in 2009, 2008 and 2007. The subsidiaries mentioned in their annual report as well as on their website are all profitable. The loss of associates was around INR 88.45 Crore in 2007, INR 95.35 Crore in 2008 and INR 99.59 Crore in 2009. The 2008 annual report is in image scanned format so I am unable to search for text inside and is a tedious job to find more about this. Leaving it to others to find out. Found the name of the associates companies in 2009, ING Vysya Life Insurance and CEIL Motive Power Pty. Limited. Insurance seem to be a pretty tough business.
Bookmark and Share

No comments:

Related Posts with Thumbnails