this is project is based on ratio analysis of final a/c statements of esab india ltd.

1. ESAB INDIA LTD
1
CHAPTER -1
INTRODUCTION
INSTITUTIONAL TRAINING
According to our college curriculum students have to undergo institutional training to update the
knowledge regarding corporate exposure and the necessity to develop skills on working in
corporate background and to bridge the gap between book knowledge and practical exposure.
Most employees have some weaknesses in their workplace skills. A training program allows you
to strengthen those skills that each employee needs to improve. A development program brings all
employees to a higher level so they all have similar skills and knowledge. This helps reduce any
weak links within the company who rely heavily on others to complete basic work tasks. Providing
the necessary training creates an overall knowledgeable staff with employees who can take over
for one another as needed, work on teams or work independently without constant help and
supervision from others.
A structured training and development program ensures that employees have a consistent
experience and background knowledge. The consistency is particularly relevant for the company's
basic policies and procedures. All employees need to be aware of the expectations and procedures
within the company. This includes safety, discrimination and administrative tasks. Putting all
employees through regular training in these areas ensures that all staff members at least have
exposure to the information.
I underwent institutional training in ESAB INDIA LTD, Ambattur. This gave me an exposure to
develop my knowledge on working in a manufacturing industry – a Swedish MNC located more
than 20 countries globally.

2. ESAB INDIA LTD
2
OBJECTIVES OF INSTITUTIONAL TRAINING
LEARNING
The prime objective of internship is to learn, learning can provide huge basis of knowledge to
individual and can even enhance one’s capabilities to practical exposure under a coordinator.
PERSONALITY DEVELOPMENT
Personality development is the relatively enduring pattern of thoughts, feelings, and behaviors that
distinguish individuals from one another. It is becoming a better version of yourself. The dominant
view in the field of personality psychology today holds that personality emerges early and
continues to change in meaningful ways throughout the lifespan. Evidence from large-scale, long-
term studies has supported this perspective.
Adult personality traits are believed to have a basis in infant temperament, meaning that individual
differences in disposition and behavior appear early in life, possibly even before language or
conscious self-representation develop. The Five Factor Model of personality has been found to
map onto dimensions of childhood temperament, suggesting that individual differences in levels
of the “big five” personality traits (neuroticism, extraversion, openness to experience,
agreeableness, and conscientiousness) are present from young ages.
PERSONALITY DEVEOPMENT is therefore very important for phase in student life of campus
to corporate.
PRACTICAL TRAINING
The industry exposure enhances the undergraduate’s work life through added enthusiasm and
commitment; provides a lifelong learning experience; is an opportunity to engage with the

3. ESAB INDIA LTD
3
profession to which they aspire in a realistic work environment; appreciate and understand the
practical application of their academic program; work with professional mentors and to begin to
build networks within their profession. So, even before the student graduates, he or she is trained
to be job-ready, thus increasing the student’s employment prospects. While the student will have
much to gain from industrial placement, the same is also true for organization which have such
training programs in place. These programs can be of mutual benefit for employers because they
may benefit from the quality of support, fresh ideas and energy that the student brings into the
work environment. Moreover, participating in internship allows the staff of an organization to
develop leadership and mentoring skills, create exposure for the company, bring new perspectives
and fresh ideas into the work environment. It is also a convenient pathway for the company to
recruit human resource as some absorb trainees into their workforce after they graduate.
SIGNIFICANCE OF THE STUDY
 To gain skills in problem solving, critical thinking and computer skills.
 To apply practical knowledge in the environment.
OBJECTIVES
LEARNING PERSONALITY DEVELOPMENT PRACTICAL TRAINING

4. ESAB INDIA LTD
4
 To develop attitude and thinking ability to solve critical situation
 Trains to develop skills and ability to pursue corporate attire
METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field of study. It
comprises theoretical analysis of the body of methods and principles associated with a branch of
knowledge. Methodology offers the theoretical underpinning for understanding which best
practices that can be applied to specific case.
It has been defined as;
 The analysis of the principles of methods ,rules and postulates employed
 The systematic study of methods that can be applied
 The study or description of methods
The methodology used in ESAB INDIA LTD to continuously upgrade the technology of
production processes to attain better results. The 6S is most common technique used to increase
the productivity and safety of any enterprise or group. The 6S method can be executed in all type
of manufacturing industries like small size, medium size and large size industries etc. The 6S is a
simple method for eliminating all challenges comes in manufacturing industries in this days. The
6S method full utilizes the all resources in the plant or industry. Doing things exactly and stay
them reliable. The 6S method attains desired results in a manufacturing industry.
The six steps of 6S method are as follows:
1. Sorting
2. Set in order
3. Shine
4. Standardization 5. Sustain 6. Safety
The 6S technique is building well-organized, safe, neat and clean workplace in any industry. The
6S technique helps in increases the work performance of employees in any industry. After
execution of 6S technique in any industry, employees are more comfortable and safer in the work
environment of industry. This results in progress in the overall efficiency of the industry.

5. ESAB INDIA LTD
5
To interpret the financial growth and analysis of the company the tools used are:
 Ratio /financial statement analysis
 Comparative income statement
 Comparative balance sheet
 Cash flow/ fund flow statement
FINANCIAL COMPONENTS
BALANCE SHEET STATEMENT OF PROFIT AND LOSS RATIO ANALYSIS INCOME STATEMENT

6. ESAB INDIA LTD
6
CHAPTER -2
HISTORY OF COMPANY
ESAB INDIA LIMITED
The ESAB India Limited started its operations in 1987 by acquiring the welding business of Peico
Electronics & Electricals Limited (now Philips India Limited). The Company continued its
expansion in the Indian market with the purchase of Indian Oxygen Limited's welding business in
1991 and Flotech Welding & Cutting Systems Limited in 1992, followed by the merger of
Maharashtra Weldaids Limited in 1994.
ESAB India Limited is owned 73.72% by the ESAB Group. The remainder of its shares are held
widely. The company is listed on the stock exchanges of Mumbai and the National Stock
Exchange.
Today, ESAB India has established itself as one of the leading suppliers of welding and cutting
products in the country. ESAB products are now an integral part of industries like Shipbuilding,
Petrochemical, Construction, Transport, Offshore, Energy and Repair and Maintenance.
ESAB India's initiative on Total Quality Management has resulted in ISO 9000 and ISO 14000
certifications for four of its principal manufacturing facilities located at Kolkata, Chennai and
Nagpur.

7. ESAB INDIA LTD
7
OBJECTIVES OF COMPANY
MISSION:
Our mission is to provide our customers with the most cost-effective solutions for their welding
and cutting applications.
Through technological leadership, the most reliable products and deliveries, and continuous
improvement of our processes, we will delight our customers, employees, shareholders and
community.
Vision and Values
Our Vision and our distinct set of Values drive the success and spirit of our organization. At ESAB,
under Colfax leadership, we live our values. Our Vision and Values help us to make strategic
decisions, allocate resources, and focus our choices every day.
Our Vision
We are dedicated to creating an enduring premier global enterprise built on a unique business
culture that achieves success for our customers. This involves doing all things with integrity,
respect, and candor, with a deep commitment to excellence to associates and customers as our
foundation, to provide consistent delivery of world-class performance in welding & cutting
solutions.
Our Values
Customers Talk, We Listen – The voice of the customer will always drive the development of our
strategic plans and actions. Living this value is done by getting Customer Input and Expectations,
at every opportunity, and by differentiating ourselves in How We Deliver to our customers.

8. ESAB INDIA LTD
8
The Best Team Wins – Team-oriented, involved associates are our most valuable resource, and we
are passionate about attracting, developing, and retaining the best talent. Living this value is done
in three primary ways:
1. Building the right team – having the right people to do the job
2. Creating the right environment – making sure that leaders create an environment where all
associates can contribute, and
3. Getting the win – when you have the right people and right environment – it makes getting the
win a lot easier!
Continuous Improvement (Kaizen) Is Our Way Of Life – Set breakthrough objectives, experiment
and learn every day, eliminate waste in our business processes, and benchmark the best, then better
them. Living this value is done through understating that Change is a Must, and the use of Tools
for Improvement. To live this value each ESAB associate fosters an environment of continuous
learning employing the Colfax Business System Tools which is the basis of our culture.
Innovation Defines Our Future – Individual and organizational creativity will drive breakthrough
ideas for technology, products, solutions, and processes. We live this value by providing
differentiated customer solutions, creating products and services that improve quality of life and
environmental stewardship through Creative Thinking, and by understanding What Innovation
Brings.
We Compete For Shareholders Based On Our Performance – To consistently attract and retain
loyal shareholders, we must deliver best-in-class results for profits, working capital, and cash flow.
We live this value by developing aggressive, yet realistic and measurable performance objectives
and consistently achieving established goals.
It takes focus, dedication, and living our values to achieve success for our customers, employees,
shareholders and community. Our Vision and Values help us to make strategic decisions, allocate
resources, and position us to provide best-in-class results on a daily basis.

9. ESAB INDIA LTD
9
CHAPTER 2.2 -ORGANISATION STRUCTURE OF COMPANY
With operations in a large number of countries, ESAB is a world leader in production of welding
consumables and equipment.
BOARD OF DIRECTORS
KEY MANAGERIAL PERSONNEL
B MOHAN – VICE PRESIDENT (FINANCE & CHIEF FINANCIAL OFFICER)
S VENKATAKRISHNAN – (COMPANY SECRETARY & COMPLIANCE OFFICER)
REGISTERED OFFICE
PLOT NO 13, 3RD MAIN ROAD, INDUSTRIAL ESTATE
AMBATTUR, CHENNAI 600058. TEL: 04442281100.
www.esabindia.com CIN: L29299TN1987PLC058738
DANIEL A PRYOR
CHAIRMAN
ROHIT GAMBHIR
MANAGING
DIRECTOR
V TANDON
INDEPENDANT
DIRECTOR
S CHAND
INDEPENDANT
DIRECTOR
K VAIDYANATHAN
INDEPENDANT
DIRECTOR
SABITHA RAO
INDEPENDENT
DIRECTOR

10. ESAB INDIA LTD
10
BANKERS TO THE COMPANY
AXIS BANK LIMITED
HDFC BANK LIMITED
REGISTRAR & SHARE TRANSFER AGENT- INTEGRATED ENTREPRISES INDIA
STATUTORY AUDITORS - M/S R BATLIBOI & ASSOCIATES, LLP
INTERNAL AUDITORS - M/S PK F SRIDHAR & SANTHANAM, LLP
COST AUDITORS - M/S GEEYES& CO
SECRETARIAL AUDITORS - M/S V MAHESH & ASSOCIATES
ORGANIZATIONAL STRUCTURE ESAB INDIA LTD FOLLOWS
MATRIX TYPE OF ORGANIZATIONAL STRUCTURE

11. ESAB INDIA LTD
11
PRODUCT MANAFACTURING HIEARCHY
MATRIX ORGANIZATIONAL STRUCTURE combines functional and product structure with
employees grouped both according to job specialization and according to the product
manufactured. Geographical structures work best for large businesses that operate in number of
geographical location.
ADVANTAGES that organizations seek when introducing a matrix include:
 To break business information silos - to increase cooperation and communication across
the traditional silos and unlock resources and talent that are currently inaccessible to the
rest of the organization.
 To deliver work across the business more effectively – to serve global customers, manage
supply chains that extend outside the organization, and run integrated business regions,
functions and processes.
 To be able to respond more flexibly – to reflect the importance of both the global and the
local, the business and the function in the structure, and to respond quickly to changes in
markets and priorities.

12. ESAB INDIA LTD
12
 To develop broader people capabilities – a matrix helps develop individuals with broader
perspectives and skills who can deliver value across the business and manage in a more
complex and interconnected environment.
Product organizational structure is best for large businesses that sell a wide variety of
products, such as manufacturing steel components, machinery. This is divided into
divisions that are centered on specific product or product category. If the business covers
multiple regions as with geographical location each division will have its own management
and employees including different departments, managed by different head centers.
The ESAB group is owned by Colfax Corporation. In 2010, we employed more than 8,400 people
worldwide. Over 100 years after the company was founded, ESAB serves a global market. The
group is organized in the regions Europe, North America, South America, Asia/Pacific and India.
ESAB is represented in almost every country by subsidiaries or agents. Sales and support is
established in 80 countries and there are 26 manufacturing plants across four continents.
The brand is synonymous with world leading expertise in the following key areas:
O manual welding and cutting equipment
O Welding consumables
O Welding automation
O Cutting systems
For each discipline, continuous development of methods, materials and know-how is being
directed to meet the challenges posed by a diversity of industry sectors. ESAB is organized to
deliver efficient, high-productivity solutions to meet their requirements in a manner that exceeds
their expectations. Our customers are found in the following industries:
O Automotive
O General Fabrication & civil construction
O Pipelines
O Pipe mills

13. ESAB INDIA LTD
13
MANAGEMENT HIEARCHY- ESAB INDIA LTD
MR. ROHIT GAMBHIR
MANAGING DIRECTOR
MR. B MOHAN
CHIEF FINANCIAL
OFFICER
MR.MYILVAGANAM
VP- HUMAN
RESOURCES
MR.AMIT DE
VP- SALES

14. ESAB INDIA LTD
14
CHAPTER 2.3- OFFICE LAYOUT
Office layout means the systematic arrangement of office equipment, machines and furniture and
providing adequate space to office personnel for regular performance of work with efficiency.
Studies have shown that layout of office impacts the employee morale which affects the
functioning. When we say layout, it does not imply only the décor and facilities, but the
relationships between people who work there and the general environment. Often this is referred
as ergonomics.
As layout has impact on the morale, it directly impacts the efficiency and thereby the business
success rate. The more the people working there are happy, the better is the output. This is direct
link to the business success factor.
The traditional style of work like working at one desk or work executed by only one person has
been replaced by re-engineered organisational structure. The work or task at this modern age has
changed due to globalisation that is governed by the use of information technology. The
tremendous developments in this technology has impacted the office working hours and way to
perform the tasks.
While offices can be built in almost any location and in almost any building, some modern
requirements for offices make this more difficult, such as requirements for light, networking, and
security. The primary purpose of an office building is to provide a workplace and working
environment primarily for administrative and managerial workers. These workers usually occupy
set areas within the office building, and usually are provided with desks, PCs and other equipment
they may need within these areas

15. ESAB INDIA LTD
15
ESAB ENVIRONMENT@ FRANCE

16. ESAB INDIA LTD
16
CHAPTER 2.4 - OFFICE ENVIRONMENT
The main purpose of an office environment is to support its occupants in performing their job.
Work spaces in an office are typically used for conventional office activities such as reading,
writing and computer work. There are nine generic types of work space, each supporting different
activities. In addition to individual cubicles, there are also meeting rooms, lounges, and spaces for
support activities, such as photocopying and filing. Some offices also have a kitchen area where
workers can make their lunches. There are many different ways of arranging the space in an office
and whilst these vary according to function, managerial fashions and the culture of specific
companies can be even more important. While offices can be built in almost any location and in
almost any building, some modern requirements for offices make this more difficult, such as
requirements for light, networking, and security. The primary purpose of an office building is to
provide a workplace and working environment primarily for administrative and managerial
workers. These workers usually occupy set areas within the office building, and usually are
provided with desks, PCs and other equipment they may need within these areas.
 FUNCTIONS OF THE HOUSEKEEPING DEPARTMENT-
 BASIC FUNCTIONS: The primary function of the housekeeping department is keeping the
venue clean and sanitary as part of customer service. They collect trash and empty
wastebaskets, change the sheets and make the beds. These hands-on tasks fall to the actual
cleaning staff.
 SUPERVISORY FUNCTIONS: The work of organizing and coordinating the cleaning falls
to the first-line supervisors and housekeeping managers in a hospitality business. Supervisors
also make sure housekeeping equipment, such as vacuum cleaners and floor polishers, is
properly maintained.
 MANAGEMENT FUNCTIONS: Housekeeping management functions belong to higher-
level supervisors or managers, depending on the size of the hotel or operation. Managers track
the inventory of supplies, keep payroll records, maintain the department budget and prepare
expense and occupancy reports.

17. ESAB INDIA LTD
17
CHAPTER 2.5 - OFFICE EQUIPMENTS
The office should have a clean and healthy environment. For an office to function effectively, it
should be well equipped. There much equipment that is important for the proper function of the
office. Let's discuss the top ten essential equipment that every office must have. Working in the
office without this equipment would be very difficult or impossible.
PROPER LIGHTING
The office room should be equipped with proper lighting equipment. Unless until it is facilitated
with proper lighting, it's difficult to work. The lighting must be fixed in proper positions to avoid
shadows and other visibility hindrances. It's also important to know about the quality and life of
lighting products. Long lasting and quality office lighting equipment must be used in order to save
time and money. Additional lighting such as colorful LED bulbs can also be used to give a cool
and colorful look to the office.
POWER BACK UP
It's an important factor that your office doesn't run out of power. In order to get a pleasant
workspace, uninterrupted electricity is a major factor. You have to make sure that your office must
be provided with 24 hrs. Power supply. For that, a power generator or inverter is advisable. In the
case of computerized office setup, an UPS is an inevitable factor. For some companies the power
backup equipment is on the first place of the essential office devices list.
FIRE EXINGUISHER
Fire extinguishers are typically fitted in buildings at an easily accessible location, such as against
a wall in a high-traffic area. They are also often fitted to motor vehicles, watercraft, and aircraft -
this is required by law in many jurisdictions, for identified classes of vehicles. Under NFPA 10 all
commercial vehicles must carry at least one fire extinguisher, with size/UL rating depending on
type of vehicle and cargo (i.e., fuel tankers typically must have a 20 lb. (9.1 kg), while most others
can carry a 5 lb. (2.3 kg)). The revised NFPA 10 created criteria on the placement of "fast flow
extinguishers" in locations such as those storing and transporting pressurized flammable liquids
and pressurized flammable gas or areas with possibility of three dimensional class B hazards are
required to have "fast flow extinguishers" as required by NFPA 5.5.1.1.

18. ESAB INDIA LTD
18
GENERATOR ROOM
An electrical room is a room or space in a building dedicated to electrical equipment. The size of
the electrical room is usually proportional to the size of the building. Large buildings may have a
main electrical room and subsidiary electrical rooms. Electrical equipment may be for power
distribution equipment, or for communications equipment.
Electrical rooms typically house the following equipment:
 Electric switchboards
 Distribution boards
 Circuit breakers and disconnects
 Electricity meter
 Transformers
 Bus bars
 Backup batteries in a Battery room
 Fire alarm control panels
 Distribution frames
FIRST AID KIT
A first aid kit is a collection of supplies and equipment for use in giving first aid. First aid kits
may be made up of different contents depending on who has assembled the kit and for what
purpose. There is a wide variation in the contents of first aid kits based on the knowledge and
experience of those putting it together, the differing first aid requirements of the area where it may
be used and variations in legislation or regulation in a given area.
First aid kits can be assembled in almost any type of container, and this will depend on whether
they are commercially produced or assembled by an individual. Standard kits often come in
durable plastic boxes, fabric pouches or in wall mounted cabinets.

19. ESAB INDIA LTD
19
A RECAP OF HISTORY OF ESAB INDIA LTD

20. ESAB INDIA LTD
20
ESAB LTD – GALLERY
ESAB PRODUCTS FOR SCRAMBLER
ABOUT COLFAX CORPORATION -- Colfax Corporation is a diversified global manufacturing
and engineering company that provides gas- and fluid-handling and fabrication technology
products and services to commercial and governmental customers around the world under the
Howden, Colfax Fluid Handling and ESAB brands. Colfax believes its brands are among the most
highly recognized in each of the markets that it serves. Colfax is traded on the NYSE under the
ticker "CFX." Additional information about Colfax is available at www.colfaxcorp.com.

21. ESAB INDIA LTD
21
ESAB
EQUIPMENTS

22. ESAB INDIA LTD
22
ESAB
PLANT

23. ESAB INDIA LTD
23
ESAB
DEMOBUS

24. ESAB INDIA LTD
24
PRODUCT
INNOVATION

25. ESAB INDIA LTD
25
TECHNOLOGICALINNOVATIONS
In 1903, Oscar Kjellberg, a Swedish machine engineer was working on ships and boilers in
Göteborg, Sweden. His dissatisfaction with the quality of repair jobs fueled his quest for a better
solution that led to the invention of the world's first flux covered electrode.
ESAB ANNOUNCES COLFAX’S ACQUISITION OF VICTOR
TECHNOLOGIES HOLDINGS, INC.
ESAB, a member of the Colfax group of companies, today announced that Colfax has entered into
a binding agreement to acquire Victor Technologies Holdings, Inc. ("Victor").
The acquisition brings together two leading organizations with world-class products, technologies
and R&D. In its 110th year, ESAB is one of the largest and most experienced manufacturers of
welding and cutting products with sales and support established in 80 countries and manufacturing
plants across five continents. Victor has a century-long history of innovation and is recognized for

26. ESAB INDIA LTD
26
its leading brands, including Victor®, Tweco®, Cigweld® and Stoody®, which are manufactured,
sold and serviced around the globe.
The combination of ESAB and Victor creates a comprehensive product portfolio that brings a
broader array of solutions to the global welding and cutting industry. Two of the leading suppliers
in the industry, both with large, well-diversified geographic footprints, ESAB and Victor will
together deliver more value to more customers in more areas of the world.
"Together, we'll use our combined geographic reach, product technologies, channel resources, and
most importantly, organizational talent, to provide innovative welding and cutting solutions for
our customers," said Clay Kiefaber, President & CEO ESAB.
ESAB places strong emphasis on constant innovation and improvement guided by the voice of the
customer. The Colfax Business System (CBS) will drive ESAB and Victor's joint efforts to develop
new products, provide added value to existing products, and deliver differentiated customer
solutions.
ACHIEVEMENTS OF ESAB
Boeing Selects ESAB For Space Launch System Project
Boeing [NYSE: BA] has selected ESAB Welding & Cutting Products as a partner in the
manufacturing of fuel tank structures for NASA's new heavy-lift rocket, the Space Launch System
(SLS).
The SLS will be the largest American rocket ever built and will measure 200 feet taller than the
entire space shuttle rocket assembly. The SLS will measure 384 feet in total length, with a weight
of 6.5 million pounds. The construction of an assembly of this magnitude requires entirely new
ways to fabricate, assemble, and weld the main fuel tank structures.
Engineers and experts from ESAB have worked with Boeing and NASA for more than a year to
develop the new Vertical Assembly Center (VAC), which is a giant orbital welding system that is
capable of supporting the huge rocket fuel tank while circumferentially welding its sections
together with the friction stir process. ESAB's construction of the VAC will be the largest welding
machine of its type in history, and is the most precise part of the assembly.

27. ESAB INDIA LTD
27
The VAC is being designed, engineered, and built at the ESAB facility in Laxa, Sweden, and is
supported by ESAB's North American Automation Division. The vertical tower assembly is being
built in the United States using U.S. steel and component materials.
ESAB's level of friction stir technology expertise and strong operational and project management
procedures were key factors in this selection.
Boeing worked with ESAB to employ friction stir welding technology on the Delta II and Delta
IV rocket programs in the late 1990's and early 2000's. Friction stir welding uses a spinning tool
with a great deal of pressure and torque to mix metals together without melting them. This allows
users to fuse together hi-tech alloys that are difficult or impossible to join with conventional
welding techniques.
Friction stir welding has the potential to change the way many common structures are built from
passenger trains and airplanes to trucks, cars and electronics. The low heat input and high strength
of automated friction stir welds provide opportunities for manufacturers to redesign their structures
for lighter weight, lower cost and higher performance.
The SLS project is widely viewed as America's next-generation space program, with the goal of
producing a rocket to transport people beyond Earth's orbit. Slated for launch in 2017, this
expandable rocket has tremendous capabilities for transporting payload during deep space
explorations.
"We are honored to be part of this historical project with the Boeing Space Launch System (SLS)
team and NASA," said Ken Konopa, Vice President of Marketing for ESAB. "ESAB is known as
a developer of advanced welding technologies, and we are prepared to deliver those results as part
of this next-generation space program."
ESAB Welding & Cutting Products is a recognized leader in the welding industry. From time-
honored processes to revolutionary technologies, ESAB's filler metals, welding and cutting
equipment, and accessories bring solutions to customers around the globe. For more information,
visit www.esab.com.

28. ESAB INDIA LTD
28
ESAB –INVOLVEMENT IN 2012 OLYMPICS
Sever field Reeve, in Thirsk, North Yorkshire, have been an established ESAB customer since
2002. They are the UK’s market leading structural steelwork fabricators and was a major
contractor to the 2012 Olympics.In 2012, London hosted the Olympic Games like never before,
drawing on the country’s proud Olympic heritage. Sever field Reeve has been heavily involved
with the Olympic project and has been manufacturing structural beams for different areas.
The areas include:
 Olympic Stadium
 Basketball Arena
 Velodrome park
 Handball Arena
 Stratford City Shopping Centre
 Olympic Village
 Excel Extension
 Aquatics Centre Link Bridges
 Olympic Link Bridge
 International Broadcast Centre / Main Press Centre

29. ESAB INDIA LTD
29
ESAB Creates Virtual Trade Show Site for Schweissen & Schneiden 2013
Exhibit
.
ICE™ - beyond belief! The coolest innovation in SAW technology
ESAB’s revolutionary new technology exploits the excess heat from the conventional submerged
arc welding (SAW) process to melt additional wire. Same energy consumption, 50% higher
deposition rate. One of many benefits. The elegantly simple ICE™ concept (patent pending)
exploits the excess heat generated by the welding process to melt an additional non-powered
welding electrode – the Integrated Cold Electrode. This yields multiple productivity benefits,
including boosting the deposition rate by up to 50% – from the same energy input.
Enabling tandem welding in root passes, ICE™ technology combines high penetration with high
productivity. The High Deposition Root™ method can raise root welding productivity by up to
100%, depending on the application.
The increased deposition rate means higher welding speeds for greater productivity in a range of
different applications. This productivity gain allows many applications to be completed with fewer
runs. At a 50% higher deposition rate, this can reduce flux consumption by as much as 20%.

30. ESAB INDIA LTD
30
There are plenty of other savings too. Welding is highly energy-intensive. Any reduction in energy
consumption offers significant environmental and financial benefits. The ability to achieve a
dramatic increase in deposition rate with no additional energy input ensures an inevitable and
substantial reduction in energy consumption .Another productivity booster is the innovative Flat
Cap Control™ feature. Fine adjustment to the ratio of ‘cold wire’ used for cap runs makes it
possible to produce a flatter cap to the weld. The result: improved fatigue resistance and a reduction
in the amount of post-weld treatment required. Yet another productivity gain!
The multiple gains offered by ICE™ technology stretch across a broad range of applications in
many industries. These include major sectors such as the fabrication of on-and-offshore wind
towers and other offshore components, pipe welding, general heavy fabrication and shipbuilding.
The coolest innovation since the introduction of SAW technology, ICE™ puts excess heat to work
– for greater productivity.
ESAB has made cold hot!
New Improved Packaging of MIG Wires
ESAB India has launched new improved packaging of MIG wires to meet growing customer
expectations. A New Crash Lock system has been incorporated in our boxes, which is a staple less
and glue less locking mechanism that enables easier unpacking and re-use of boxes. A great effort
has been put to improve the aesthetics of the packaging, to meet Customer Expectations.
 All Solid wires shall be available in new design Pallets to help reduce transit damages.
 Re-engineered Solid wire boxes with improved Strength to withstand and hold the load in
both static and dynamic environments.
 Improved resistance to vibrations New Crash Lock system (staple less and glue less)
enabling easier unpacking and re-use of boxes.
 Improved Aesthetics

31. ESAB INDIA LTD
31
CHAPTER 3
DEPARTMENTATION
Departmentation is the foundation of organization structure, that is, organization structure depends
upon departmentation. Departmentation means division of work into smaller units and their re-
grouping into bigger units (departments) on the basis of similarity of features.
As the organization grows in size, the work is divided into units and sub-units. Departments are
created and activities of similar nature are grouped in one unit. Each department is headed by a
person known as departmental manager.
Departmentation, thus, helps in expanding an organization and also promotes efficiency by
dividing the work on the basis of specialisation of activities and appointing people in various
departments on the basis of their specialised knowledge. This form of departmentation is suitable
for companies that produce multiple products.
ABOUT ESAB -- is one of the world's largest manufacturers of welding consumables, welding
and cutting equipment, and associated automation. Founded in 1904, ESAB offers products for
virtually every welding and cutting process and application, and is widely recognized as the
technological leader in the industry. With manufacturing facilities on five continents and more
than 8,000 associates, ESAB delivers products and support services quickly and efficiently to
customers around the globe.
THE MAIN TYPE OF DEPARTMENTATION IS PRODUCT DEPARTMENTATION
Product departmentation is grouping of jobs and resources around the products or product lines
that a company sells. With increase in operations of a company, it adds more products to its line
of products which require various functional activities (production, marketing etc.). Product
departmentation is suitable for product diversification where marketing characteristics of each
product are different from others.

32. ESAB INDIA LTD
32
An organization selling stationery, for example, also starts selling cosmetics and pharmaceuticals.
While marketing strategies for cosmetics need to be intensive, it is not so in case of stationery or
pharmaceuticals. Similarly, funds required for each product line are different.
The focus is on the product line and all functional activities associated with the product line.
Departments are created on the basis of products and product manager has the authority to carry
out functional activities for his department. Each product manager is in charge of his product line
though general managers of various functional areas provide them the necessary support. It helps
in coordinating the activities of different products.
THE SECOND TYPE OF DEPARTMENTATION IS PROCESS DEPARTMENTATION
This form of departmentation is suitable for companies that produce multiple products. Product
departmentation is grouping of jobs and resources around the products or product lines that a
company sells. With increase in operations of a company, it adds more products to its line of

33. ESAB INDIA LTD
33
products which require various functional activities (production, marketing etc.). Product
departmentation is suitable for product diversification where marketing characteristics of each
product are different from others.
An organization selling stationery, for example, also starts selling cosmetics and pharmaceuticals.
While marketing strategies for cosmetics need to be intensive, it is not so in case of stationery or
pharmaceuticals. Similarly, funds required for each product line are different.
The focus is on the product line and all functional activities associated with the product line.
Departments are created on the basis of products and product manager has the authority to carry
out functional activities for his department. Each product manager is in charge of his product line
though general managers of various functional areas provide them the necessary support. It helps
in coordinating the activities of different products.
Organization Chart Showing Product Departmentation
Product departmentation, along with various functional areas appear on the organization
chart as follows

34. ESAB INDIA LTD
34
THE THIRD TYPE OF DEPARTMENTATION IS CUSTOMER DEPARTMENTATION
When organizations sell to customers with different needs, departments are created on the basis of
customers. Customer departmentation is “the organizing of jobs and resources in such a way that
each department can carefully understand and respond to different needs of specific customer
groups”.
A lending institution, for example, gives loan to meet different customer requirements like housing
loan, car loan, commercial loan etc. An educational institution which provides academic and non-
academic subjects (vocational subjects), full-time or part-time courses, morning or evening shifts
is a typical case of customer departmentation. Clear identification of customers and their needs is
the basis of customer departmentation. This method of departmentation can be followed only in
marketing division.
Merits of Customer Departmentation
Customer departmentation has the following merits
i) Competitive advantage
Contemporary marketing world revolves around customers. ‘Consumer is the
king.’ By catering to varied customer needs, companies have an edge over competitors and,
therefore, better chances of survival and growth.

35. ESAB INDIA LTD
35
(ii) Customer orientation
The goal of an organization is to earn profits by customer satisfaction. An
organization where the basis of departmentation is to sell goods according to customer needs
justifies its existence.
(iii) Specialisation
A department created for satisfying customer requirements becomes specialized
in that area resulting in cost efficiency. Sales people understand consumer behavior and provide
them the desired services. They develop understanding with the consumers and build clientele for
the organization.
Limitations of Customer Departmentation
Customer departmentation has the following limitations
(i) Co-ordination
Excessive involvement of employees in their respective departments makes it
difficult for top managers to co-ordinate the functions of different departments.
(ii) Identification of consumer groups
It is not easy to identify various consumer groups. A large industrial buyer for one
product, for example, may be a small buyer for another product. The same product may be of
industrial use for one buyer and personal use for another. Identifying buyers as industrial and non-
industrial is not very easy.
(iii) Change in consumer behavior
Consumer department managers cannot easily frame policies for their departments
because of changing consumer behavior. Demand for the same product for same set of consumers
differs during different times. Marketing managers have to balance the time and money spent in
framing policies so that organization can adapt to the changing customer environment.

36. ESAB INDIA LTD
36
(iv) Specialised staff
Change in consumer behavior, their demand for different goods at different times
cannot be easily predicted. The departmental managers, therefore, must have specialised skills to
determine the consumer needs.
THE FOURTH TYPE OF DEPARTMENTATION IS GEOGRAPHIC
Territory or Geographic Departmentation
In territorial departmentation, organization creates departments
(i) Close to its customers because they are geographically dispersed over different areas, or
(ii) Near the sources of deposits.
Each geographic unit has resources to cater to the needs of consumers of that area. The production,
purchase, personnel and marketing activities are looked after by departmental managers but
finance is vested at the headquarters. General Manager of every department looks after functional
activities of his geographical area but overall functional managers provide supporting services to
the managers of different areas.
Thus, customers of different regions with different tastes and preferences for the same product are
looked after by geographical departments set up in their territories. The product or customer
differentiation, both can be the basis of geographic or territorial departmentation. This basis is
suitable for large-sized organizations which have activities dispersed over different geographical
areas.

37. ESAB INDIA LTD
37
Organization Chart Showing Geographic Departmentation
Division of organization on the basis of geographic dispersal of activities appears on the
organization chart as follows
Merits of Geographic Departmentation
It has the following merits
i) Training and development
Employees are trained to sell goods in specific areas according to customer needs.
(ii) Customer orientation
The emphasis is on selling in different regions according to customer needs.
‘Consumer is the king’ is duly recognized by departmental managers as they develop their skills
to know the customs, styles and preferences of customers of different regions. Managers are able
to promote sales as they are aware of the local conditions of the area where they are operating.

38. ESAB INDIA LTD
38
(iii) Low cost of production
If firms establish their areas of operation near the sources of raw material, they
will be able to produce at low cost and take advantage of economies of operation.
(iv) Communication
The sales people belong to local areas of operation. They can directly
communicate with the consumers and frame policies to satisfy their needs.
Limitations of Geographic Departmentation
Territorial departmentation has the following limitations
(i) Co-ordination and control
Since departments are widely dispersed, top managers find it difficult to control
and co-ordinate their activities. While some of the functional activities are decentralized, others
are centralized. Policy framers are at the headquarters and policy executors are at the regional
offices. Different local conditions can create problems of understanding.
(ii) Expensive
Since each department has auxiliary departments like personnel, accounting etc.
to offer specialised services to managers, this is a costly method of departmentation. Before
adopting this basis of departmentation, therefore, benefits must be weighed against costs. This
method is suitable for large-scale organizations who can afford its cost.
(iii) Managerial skills
Managers should be competent to perform functional activities (production, marketing etc.)
related to their departments. They may not specialize in all the functional activities.

39. ESAB INDIA LTD
39
DEPARTMENTS IN ESAB INDIA LTD
FUNCTIONS OF PROCUREMENT DEPARTMENT
 To procure required services, materials, equipment, and construction while ensuring that
quality, safety, and cost-effectiveness are achieved.
 To ensure that procurement transactions are conducted in a manner providing full and open
competition whenever practicable.
 To comply with procurement rules and applicable federal and state laws and regulations as
required.
 To solicit the participation of all qualified and responsible contractors and suppliers in the
procurement process.
 To encourage participation from Disadvantaged Business Enterprises (DBEs) on federally
funded projects.
FINANCE &
ACCOUNTS
PROCUREMENT ADMINISTRATION
MARKETING
MANUFACTURING
& PRODUCTION
HUMAN RESOURCE
MANAGEMENT
RESEARCH AND
DEVELOPMENT
LEGAL AND
SECRETARIAL
LOGISTICS &
CUSTOMER CARE

40. ESAB INDIA LTD
40
 To enhance accountability of the Authority’s and its participating officers for their
procurement decisions and actions.
 To assure equity for all parties involved in the procurement process.
 To obtain the best value for the money spent.
 To eliminate the possibility of corruption or unethical practices in the procurement process.
FLOW CHART ON COMMUNICATION IN PROCUREMENT DEPARTMENT
EXECUTIVE
DIRECTOR
GENERAL
MANAGER
ASSISTANT
MANAGERSUBORDINATES

41. ESAB INDIA LTD
41
FUNCTION OF MANUFACTURING AND PRODUCTIONDEPARTMENT
On 12th September 1904, Elektriska Svetsnings Aktie Bolaget (ESAB) was founded in
Göteborg, Sweden. The major innovations in the course of ESAB's history are:
1904 - The Coated Electrode (MMA Welding)
1937 - Union melt (Submerged-Arc Welding)
1938 - Gravity Welding
1944 - Heliarc (TIG Welding)
1947 - MIG/MAG (Welding)
1955 - Plasma Cutting
1960 - Flux-cored Wire
1979 - Narrow gap Welding
1982 - LMA Electrodes (Low-moisture Absorption)
1989 - Adaptive butt welding
1995 - High speed Cored Wire
1996 - Friction stir Welding
1997 - Laser bevel Welding
2001 - First modular platform for welding equipment
2002 - Copper - free wire - Aristo rod
2005 - The Qset function
THESE products are manufactured within ESAB INDIA LTD PREMISES.
The production and planning department will set standards and targets for each section of the
production process. The quantity and quality of products coming off a production line will be
closely monitored. In businesses focusing on lean production, quality will be monitored by all
employees at every stage of production, rather than at the end as is the case for businesses using a
quality control approach.

42. ESAB INDIA LTD
42
2. The purchasing department will be responsible for providing the materials, components and
equipment required to keep the production process running smoothly. A vital aspect of this role is
ensuring stocks arrive on time and to the right quality.
3. The stores department will be responsible for stocking all the necessary tools, spares, raw
materials and equipment required to service the manufacturing process. Where sourcing is
unreliable, buffer stocks will need to be kept and the use of computerised stock control systems
helps keep stocks at a minimal but necessary level for production to continue unhindered.
4. The design and technical support department will be responsible for researching new products
or modifications to existing ones, estimating costs for producing in different quantities and by
using different methods. It will also be responsible for the design and testing of new product
processes and product types, together with the development of prototypes through to the final
product. The technical support department may also be responsible for work study and suggestions
as to how working practices can be improved.
5. The works department will be concerned with the manufacture of products. This will include
the maintenance of the production line and other necessary repairs. The works department may
also have responsibility for quality control and inspection. A key aspect of modern production is
ensuring quality. The term quality means fitness for purpose i.e. a product, process or service
should do exactly what is expected of it.
Total quality management
Car plants like Leyland build quality into every stage of the production process. Every employee
is expected to take responsibility for managing quality issues in order to make sure that waste is
minimised and quality maximised. This is often referred to as total quality management and is part
of the lean production methods used in modern industry.
For businesses to be competitive, Production and Marketing need to work in an integrated way.
Marketing is concerned with knowing and understanding the requirements of customers, so that
Production can provide the market led products that are required. This also requires excellent
communication systems to be in place.

43. ESAB INDIA LTD
43
FUNCTIONS OF FINANCE AND ACCOUNTS DEPARTMENT
1. Bookkeeping and Payables/Receivables
Bookkeeping is the most basic financial activity in a company. Before a business owner ever
considers hiring a CFO, they bring in a bookkeeper, who tracks all of the transactions in the
organization, covering both sales and expenses. As the organization grows, they might hire more
specialized payables and receivables clerks, to take over functions such as corresponding with
vendors and suppliers, above and beyond recording transactions.
2. Financial Reporting and Control
Financial Reporting and Control is the function that takes raw accounting entries and transforms
them into usable and comparable financial statements. Requiring far more judgment than the
bookkeeper’s role, this function involves everything from ruling on how to implement accounting
principles to designing financial processes of the organization, selecting accounting systems,
liaising with external auditors, and ensuring that there are no gaps or oversights in existing
processes.
3. Tax and Compliance
Running a business involves paying tax, and paying tax means doing a lot of calculations and
filling out a lot of forms. Often using the financial statements as a basis, along with various other
configurations of the information produced by Bookkeeping and Payables/Receivables, the Tax
and Compliance function will make sure all the government forms and filings are sent complete
and on-time to the taxman. A strong Tax and Compliance function will go one step beyond simple
compliance, and will find ways to minimize tax, to maximize the company’s net income.
The role of the “VP Strategic Finance” typically looks to the future, using the past as a starting
point but being aware that the future doesn’t always look like the past. Typical designations or
degrees for this role will include the CMA, CFA, MBA and MFIN. Note that the larger number of
headings below doesn’t indicate the VP Strategic Finance works harder than the VP Accounting.

44. ESAB INDIA LTD
44
4. Strategic Planning and Financial Planning & Analysis
This function, “FP&A” for short, is the true bridge between the Past and the Future. FP&A
regularly creates strategic and financial plans that forecast what financial results (sales and
expenses) will look like in future periods. Then, they compare actual results—prepared with the
assistance of the Financial Reporting and Control function—to determine areas where the business
can improve. With this “variance analysis” complete, they can then prepare more accurate
forecasts for the future. A strong FP&A function will not only generate annual forecasts but will
be able to update them even over the course of a day or two, and to run many scenarios that examine
the effects of, say, losing a big customer or an economic contraction.
5. Treasury & Working Capital Management
The key role of Treasury is to make sure that the company doesn’t run out of cash. This means,
among other things, forecasting the upcoming working capital (receivables, payables and
inventory) needs of the company, investing surplus cash in short-term instruments to generate
modest interest income, and managing currency risk.
6. Capital Budgeting
Capital Budgeting is the function responsible for selecting between the various uses of capital, or
capital projects. After all, most organizations will have money available to invest in the business,
with the hopes of either growing sales or reducing expenses. But the opportunities for spending
typically exceed the amount available to spend, so Capital Budgeting develops business cases to
evaluate and identify the most effective projects. A strong Capital Budgeting function will not only
forecast project benefits, but will also track these benefits over time to determine whether the use
of capital was as effective as originally anticipated.
7. Risk Management
Risk Management is a function that is rapidly developing after the financial scandals of the early
2000s (Enron, WorldCom, the Great Recession and Lehman/Bear Stearns collapse, etc.). In the
financial services industry, the function is particularly central as most institutions run with a high
amount of debt (leverage), though leaders in other industries are also bulking up this function. Risk
Management takes a hard look at some of the key risks faced by the company—currency, interest
rate, market, operational, legal, etc.—and tries to quantify the possible impacts so that they can be

45. ESAB INDIA LTD
45
mitigated as much as possible. If FP&A looks at the base case scenario for the company’s financial
results, Risk Management takes a wrecking ball to it.
8. Corporate Development & Corporate Strategy
Corporate Development and Corporate Strategy can be widely defined, but it is the area of Finance
most heavily populated by former investment bankers and management consultants. As such,
common tasks that fall to this function include sourcing and analysing mergers & acquisitions
deals, raising debt and equity financing, making capital structure decisions and providing insight
into high level strategic decisions such as entering a new market.
Key Positions in an Accounting Department
Chief Financial Officer (or CFO) – CFOs are typically the head financial executive of large
businesses. They oversee the financial strategy, health of the business, and manage the rest of the
financial department. CFO’s are very forward thinking and will help businesses navigate through
growth stages and downturns. With their knowledge of company finances, they help senior
management understand the financial impact of real-time decisions to ensure the fiscal success of
the business. Their duties include financial planning, reporting and controls, short and long term
business strategy, investments, hedging, mergers and acquisitions, cash management, internal risk
management, corporate finance, auditing and accounting.
Financial Controller – Financial Controllers are key players within accounting departments and
work alongside CFO’s, COO’s, and Financial Directors. Their function and responsibilities
include financial accounting, preparation, reporting, analysis, budgeting, project management and
more. Their key role tends to focus on immediate financial issues and management.
Treasury Manager – The treasury manager’s role in the accounting department revolves around
the formulation and development of treasure policies. This includes identifying the best investment
opportunities, developing great banking relations, optimizing credit facilities, and minimizing
finance costs.
Accounting Manager – An accounting manager is responsible for a company’s accounting
activities that include maintaining and reporting on both the cost and financial sets of accounts but

46. ESAB INDIA LTD
46
does not handle or negotiate. The accounting manager establishes and enforces the accounting
principles based on statutory requirements and auditing policy.
Chief Accounting – The chief accountant holds the same responsibilities as the accounting
manager, but the role simply differs in terms of the job title.
Accounting Supervisor – Shares the same responsibilities as an accounting manager and provides
support as a member of his/her team.
Accountant – Accountants play a key role in finance departments such as the measurement and
interpretation of financial information. The results of their work ensure compliance, and provide
the groundwork for greater financial strategies.
Bookkeepers – Bookkeepers provide the day-to-day efforts needed to record and assess basic
accounting data. They typically do not take a strategic role.
FUNCTIONS OF LEGAL AND SECRETRIAL DEPARTMENT
Duties of a Legal Secretary
 Legal secretaries prepare correspondence and type legal documents, including pleadings,
motions, briefs, discovery documents, and subpoenas. They maintain complex docket
systems to track the myriad of legal filing deadlines; create spreadsheets; index and update
pleadings and discovery binders; schedule depositions, site inspections, hearings, closings,
and meetings.
 Legal secretaries also draft correspondence and routine legal documents such as deposition
notices and legal invoices. Legal secretaries also assist with legal research and
communicate with attorneys, experts, opposing counsel, vendors and other staff.
 Legal secretaries often prepare documents, including legal briefs, court subpoenas,
spreadsheets and other office-related letters. Many legal secretaries also organize and

47. ESAB INDIA LTD
47
maintain all legal files kept on-site. Some legal secretaries also maintain electronic-filing
databases.
FLOW CHART ON COMMUNICATION OF LEGAL DEPARTMENT
 Legal secretaries often provide lawyers with direct assistance, such as helping with
research for cases, gathering necessary documents for trials and submitting paperwork to
courthouses. Other duties may include scheduling client appointments, answering calls,
taking notes during legal meetings and maintaining the firm's legal research references.
COMPANY
SECRETARY
GENERAL
MANAGER
ASSISTANT
MANAGER
SUBORDINATES

48. ESAB INDIA LTD
48
The Institute of Company Secretaries of India is the premier professional body to develop and
regulate the profession of Company Secretaries in India. It was set up by an Act of Parliament in
1980.
Companies Bill, 2012 has been passed by the parliament and has become Companies Act, 2013.
National Company Law Tribunal (NCLT) has obtained the powers of a court and all matters
relating to Company Law will be heard before it instead of before High Court(s).
A Company Secretary shall be eligible to appear before NCLT. This has opened more
opportunities for a Company Secretary.
Main functions of the company secretary in India
(a) To report to the Board about compliance applicable to the company;
(b) To ensure that the company complies with the applicable standards;
(c) To discharge such other duties as may require;
Institute of Company Secretaries of India (ICSI) is the sole body in India, which provides
company secretaryship course.
FUNCTIONS OF HUMAN RESOURCEDEPARTMENT
The human resources department handles many necessary functions of your business. It is
instrumental in providing labor law compliance, record keeping, hiring and training,
compensation, relational assistance and help with handling specific performance issues. These
functions are critical because without those functions being completed, your company would not
be able to meet the essential needs of management and staff.
 Ensure Compliance with Labor Laws
One of the chief duties of the human resources office of your company is to ensure the
business operates in compliance with all labor laws. The department has to know and
comply with that state’s particular set of rules employment regulations. This includes such

49. ESAB INDIA LTD
49
issues as the number of breaks given per number of hours worked and the number of hours
and the age in which an individual can become employed.
 Recruitment and Training
Recruiting and training new employees are primary responsibilities of the human resources
team. This part of the job often entails advertising open positions, interviewing and hiring
candidates and setting aside hours devoted to training the new recruits. The human
resources department often publishes training materials including handbooks detailing all
aspects of the job.
 Record Keeping
The HR office is in charge of record keeping for the business. According to the IRS, your
company should keep records regarding income, expenses, purchases and a summary of
business transactions. The human resources department should also, of course, maintain
employees’ records including their individual tax forms. The company’s business license,
inventory statistics, insurance records and all other pertinent business information should
also be on file.
 Payroll and Benefits
The dispensation of payroll comes under the responsibilities of the human resource office.
While payroll often exists as a separate division in large companies, in small businesses, it
is generally handled by a small human resources staff. Health care benefits are also handled
by the human resource department.
 Employee Relations
Another key function of the HR department is the managing of employee relations. When
there is a dispute or misunderstanding between employees or between employees and a
manager, it is the human resource officers who mediate the situation. Employees are
encouraged to bring relational problems to the attention of the human resources staff for
resolution.
 Employee Performance Improvement Plans
The human resources department is often instrumental in setting up performance
improvement plans commonly called PIPs. In general, these are written proposals designed
to help struggling employees improve their work to raise it to a certain expectation level of
the company. According to a University of Texas at Dallas publication, the PIP includes a

50. ESAB INDIA LTD
50
description of the behavior or performance that needs attention, objectives to be met within
a certain time period, a plan for accomplishing the improvement along with support
resources and detailed consequences if the improvement does not occur.
FUNCTIONS OF MARKETING DEPARTMENT
The Marketing Department plays a vital role in promoting the business and mission of an
organization. It serves as the face of your company, coordinating and producing all materials
representing the business. It is the Marketing Department's job to reach out to prospects, customers,
investors and/or the community, and create an overarching image that represents your company in
a positive light—that is, your brand.
Defining and managing your brand. This involves defining who you are, what you stand
for, what you say about yourself, what you do and how your company acts. This, in
turn, defines the experience you want your customers and partners to have when they
interact with you.
Conducting campaign management for marketing initiatives. Marketing proactively
identifies the products and services to focus on over the course of your sales cycle, and
then produces materials and communications that get the word out.
Producing marketing and promotional materials. Your marketing department should
create the materials that describe and promote your core products and/or services, and keep
them up-to-date as those products and services evolve.
Creating content providing search engine optimization for your website. Your website
is often the first (and possibly the only) place people go for information about you. Your
marketing department will be responsible for keeping Web content current, while also
working to ensure your site comes up quickly when someone searches for your type of
business.
Monitoring and managing social media. Marketing should contribute to, manage and
maintain your social media pages and accounts and carefully watch what’s being posted
about you online.

51. ESAB INDIA LTD
51
Producing internal communications. Your employees need to understand your company,
its values, its goals and its priorities. Marketing is often responsible for employee
communications through a newsletter and/or intranet.
Serving as media liaison. When your company is cited in the media, a member of the
marketing department often acts as spokesperson for your company, or guides executives
in how to respond to media queries.
Conducting customer and market research. Research helps you define target markets
and opportunities accordingly, and also helps you understand how your products and
services are perceived.
Overseeing outside vendors and agencies. Marketing is typically responsible for selecting
and managing the agencies and vendors who produce marketing materials and or/provide
marketing support. These may include ad agencies, print vendors, PR agencies or specialists,
Web providers, etc.

52. ESAB INDIA LTD
52
FUNCTIONS OF RESEARCHAND DEVELOPMENTDEPARTMENT
A company's research and development department plays an integral role in the life cycle of a
product. While the department usually is separate from sales, production and other divisions, the
functions of these areas are related and often require collaboration. A thorough understanding of
the functions of the research and development department allows you to maximize those duties at
your small business, even if you don't have a big department.
New Product Research
Before a new product is developed, a research and development department conducts a thorough
study to support the project. The research phase includes determining product specifications,
production costs and a production time line. The research also is likely to include an evaluation of
the need for the product before the design begins to ensure it is a functional product that customers
want to use.
New Product Development
The research paves the way for the development phase. This is the time when the new product is
actually developed based on the requirements and ideas created during the research phase. The
developed product must meet the product guidelines and any regulatory specifications.
Existing Product Updates
Existing products of the company also fall under the scope of research and development. The
department regularly evaluates the products offered by the company to ensure they are still
functional. Potential changes or upgrades are considered. In some cases, the research and
development department is asked to resolve a problem with an existing product that malfunctions
or to find a new solution if the manufacturing process must change.
Quality Checks
In many companies, the research and development team handles the quality checks on products
created by the company. The department has an intimate knowledge of the requirements and
specifications of a particular project. This allows team members to ensure the products meet those
standards so the company puts out quality products. If the company also has a quality assurance
team, it may collaborate with research and development on quality checks.

53. ESAB INDIA LTD
53
Innovation
The research and development team aids the company in staying competitive with others in the
industry. The department is able to research and analyze the products other businesses are creating,
as well as the new trends within the industry. This research aids the department in developing and
updating the products created by the company. The team helps direct the future of the company
based on the information it provides and products it creates.

54. ESAB INDIA LTD
54
CHAPTER 4
FINANCIAL STATEMENTS ANALYSIS
MEANING
Financial statement refers to formal and original statements prepared by a business concern to
disclose its financial information. This financial statement analysis reports on the progress by the
arrangement.
USERS OF FINANCIAL STATEMENT
Financial statement provides valuable information regarding financial position and prospects of
the business concern. There are many parties who are involved in this use of financial statement
some of them are:
 MANAGEMENT
 GOVERNMENT
 CREDITORS
 INVESTORS
TOOLS OF FINANCIAL STATEMENT
In some of the tools of financial statements analysis, now we are going to analyse the comparative
financial statements of the company:
I. COMPARATIVE STATEMENTS ( PROFIT AND LOSS ,BALANCESHEET)
II. COMMON SIZE STATEMENTS (INCOME AND BALANCE SHEET)
III. RATIO ANALYSIS

55. ESAB INDIA LTD
55
CHAPTER 4.1- COMPARATIVE BALANCE SHEET
This statement comprises of present related data for 3 years. When comparative statements are
prepared for more than two periods, then one of the year is taken as basis to calculate the percentage
of increase or decrease.
A comparative balance sheet presents side-by-side information about an entity's assets, liabilities,
and shareholders' equity as of multiple points in time. Another variation is to present the balance
sheet as of the end of each month for the past 12 months on a rolling basis. In both cases, the intent
is to provide the reader with a series of snapshots of a company's financial condition over time,
which is useful for developing trend line analysis.
OBJECTIVES OF COMPARATIVE BALANCE SHEET
To measure the financial position of an enterprise.
To analyse different items of assets and liabilities in absolute rupees, i.e. balances on two
or more comparative dates.
To analyse increase or decrease in rupee amounts as well as in percentage by taking the
data of previous years as base.

56. ESAB INDIA LTD
56
PARTICULARS 2014-2015 2015-2016 2016-2017
( ALL AMOUNT IN LAKH) RS RS RS
FIXED ASSETS
TANGIBLE FIXED ASSET 8159 7734 7520
INTANGIBLE FIXED ASSET 145 68 183
CAPITAL WORK IN PROGRESS 124 525 723
DEFERRED TAX ASSETS (NET) 62 178 296
LONG TERM LOANS AND ADVANCES 1568 1340 1359
OTHER ASSETS 236 241 1919
10294 10086 12000
WORKING CAPITAL
CURRENT ASSET
CURRENT INVESTMENTS 12189 11977 14386
INVENTORIES 5396 5846 6283
TRADE RECEIVABLES 4370 4544 4798
CASH AND BANK BALANCES 3493 5068 4143
SHORT TERM LOANS AND ADVANCES 1066 958 978
OTHER ASSETS 61 78 134
26575 28471 30722
LESS: CURRENT LIABLITY
TRADE PAYABLE 5521 4314 5772
OTHER CURRENT LIABLITY 1076 1326 1323
SHORT TERM PROVISION 992 -7589 942 -6582 773 -7868
18986 21889 22854
WORKING CAPITAL
TOTAL ASSETS 29280 31975 34854
SHAREHOLDER'S FUNDS
SHARE CAPITAL 1539 1539 1539
RESERVES AND CAPITAL 27365 28905 30015 31554 32615 34154
NON CURRENT LIABLITIES
DEFERRED TAX LIABLITIES (NET)
OTHER LONG TERM LIABLITIES 119 127 383
LONG TERM PROVISIONS 256 375 294 421 317 700
29280 31975 34854
CAPITAL EMPLOYED
COMPARATIVE BALANCE SHEET OF ESAB INDIA LTD

57. ESAB INDIA LTD
57
PARTICULARS 2016 2015 INC/DEC %
EQUITY AND LIABLITIES
SHAREHOLDER'S FUNDS
SHARE CAPITAL 1539 1539 NIL NIL
RESERVES AND SURPLUS 30015 27366 2649 9.679895
31554 28905 2649 9.164504
NON CURRENT LIABILITIES
DEFERRED TAX LIABLITIES (NET) NIL NIL NIL
OTHER LONG TERM LIABILITES 127 119 8 6.722689
LONG TERM PROVISIONS 294 256 38 14.84375
421 375 46 12.26667
CURRENT LIABILITIES
TRADE PAYABLES 4314 5521 -1207 -21.862
OTHER CURRENT LIABLITIES 1326 1076 250 23.2342
SHORT TERM PROVISIONS 942 992 -50 -5.04032
6582 7589 -1007 -13.2692
TOTAL 38557 36869 1688 4.578372
ASSETS
NON CURRENT ASSETS
FIXED ASSETS
TANGIBLE FIXED ASSETS 7734 8159 -425 -5.20897
INTANGIBLE FIXED ASSETS 68 145 -77 -53.1034
CAPITAL WORK IN PROGRESS 525 124 401 323.3871
DEFERRED TAX ASSETS (NET) 178 62 116 187.0968
LONG TERM LOANS AND ADVANCES 1340 1568 -228 -14.5408
OTHER ASSETS 241 236 5 2.118644
10086 10294 -208 -2.02059
CURRENT ASSETS
CURRENT INVESTMENTS 11977 12189 -212 -1.73927
INVENTORIES 5846 5396 450 8.339511
TRADE RECEIVABLES 4544 4370 174 3.981693
CASH AND BANK BALANCES 5068 3493 1575 45.09018
SHORT TERM LOANS AND ADVANCES 958 1066 -108 -10.1313
OTHER ASSETS 78 61 17 27.86885
28471 26575 1896 7.134525
TOTAL 38557 36869 1688 4.578372
COMPARATIVE BALANCE SHEET OF ESAB INDIA LTD 2015-2016

58. ESAB INDIA LTD
58
COMPARATIVE BALANCE SHEET
INTERPRETATION OF BALANCE SHEET
 There was a rapid growth fixed which implies the surplus cash flow in the company.
 Total assets have been increasing continuously, which shows that company’s
investments plan is in the correct path
 There was a gradual increase in share capital which indicates strong basement of the
company.
 Rapid growth can be seen in reserve & surplus. It emphasis the profitability of the
company.
 Fixed asset have been increased in 2017 by 5574 (lakhs) when compared to the year
2014.
 Total assets are determined by adding current assets and non-current assets by
deducting from the current liabilities.
26000
27000
28000
29000
30000
31000
32000
33000
34000
35000
2014-2015 2015-2016 2016-2017
COMPARATIVE BALANCE SHEET - CAPITAL EMPLOYED
29280 31975 34854

59. ESAB INDIA LTD
59
CHAPTER 4.2 - COMPARATIVE INCOME STATEMENT
MEANING
The income statement is a single and straightforward report on a business cash generating ability.
It draws information from the various financial models such as revenue, expense, capital and the
cost of goods. By combining these elements, the income statement illustrates just how much your
company makes or loses during the year by subtracting cost of goods and expenses from revenue
to arrive at a net result, which is either a profit or a loss. It differs from a cash flow statement
because the income statement does not show when revenue is collected or when expenses are paid.
FEATURES OF COMPARATIVE INCOME STATEMENTS
A comparative statement adds meaning to the financial data.
It is used to effectively measure the conduct of the business activities.
Comparative statement analysis is used for intra-firm analysis and inter-firm analysis.
Financial statements are always expressed in monetary terms. They ignore qualitative
aspects. In other words, the non-monetary events do not come under the scope of financial
statements.
Financial statements are always prepared for a certain period of time. They generally cover
the period of one year.
Financial statements are historical in nature since they always present the past performance.

60. ESAB INDIA LTD
60
COMPARATIVE INCOME STATEMENT OF ESAB INDIA LTD
PARTICULARS 2014-2015 2015-2016 2016-2017
INCOME RS RS RS
(ALL AMOUNT IN LAKH)
NET REVENUE FROM OPERATIONS 55185 45095 47372
OTHER INCOME 1146 800 1285
TOTAL REVENUE 56331 45895 48657
EXPENSES
COST OF RAW MATERIALSS 29098 23220 24287
PURCHASES OF TRADED GOODS 5813 5188 5669
WORK IN PROGRESS 774 -312 -181
EMPLOYEE BENEFIT EXPENSES 5584 4681 5233
DEPRECIATION 1375 952 1027
OTHER EXPENSES 8865 7703 8074
TOTAL EXPENSES 51509 41432 44109
PROFIT BEFORE EXCEPTIONAL AND TAX 4822 4463 4548
LESS:EXCEPTIONAL ITEMS 1761 3061 353 4110 911 3637
TAX EXPENSES
CURRENT TAX 1079 1392 1155
DEFERRED TAX -382 -116 -118
697 1276 1037
PROFIT FOR THE YEAR 2364 2834 2600

61. ESAB INDIA LTD
61
COMPARATIVE INCOME STATEMENT 2015-2016
ESAB INDIA LTD
INCOME 2016 2015 INC/ DEC %
REVENUE FROM OPERATIONS 49497 60348 -10851 -17.9807
LESS : EXCISE DUTY 4402 5163 -761 -14.7395
REVENUE FROM OPERATIONS (NET) 45095 55185 -10090 -18.284
OTHER INCOME 800 1146 -346 -30.192
TOTAL REVENUE 45895 56331 -10436 -18.5262
EXPENSES
COST OF RAW MATERIALS AND COMPONENTS 23220 29098 -5878 -20.2007
PURCHASES OF TRADED GOODS 5188 5813 -625 -10.7518
WORK IN PROGRESS -312 774 -1086 -140.31
EMPLOYEE BENEFITS EXPENSE 4681 5584 -903 -16.1712
DEPRECIATION AND AMORTISATION EXPENSE 952 1375 -423 -30.7636
OTHER EXPENSE 7703 8865 -1162 -13.1077
TOTAL EXPENSE 41432 51509 -10077 -19.5636
PROFIT BEFORE TAX 4110 3061 1049 34.26985
TAX EXPENSE
CURRENT TAX 1392 1079 313 29.00834
DEFERRED TAX -116 -382 266 -69.6335
1276 697 579 83.0703
PROFIT FOR THE YEAR 2834 2364 470 19.88156

62. ESAB INDIA LTD
62
COMPARATIVE INCOME STATEMENT
INTERPRETATION OF INCOME STATEMENT
 Sale value in 2015-2016 is higher than the other two years 2014 and 2017.
 As sales has been increased gross profit for the year also increases.
 The operating expenses which have been deducted from the operating profit is seems to be
increase in values.
 From operating profit the non-operating expenses are deducted which determines the net
profit before tax and interest is calculated.
 The net profit before interest and tax increases every year.
2100
2200
2300
2400
2500
2600
2700
2800
2900
2014-2015 2015-2016 2016-2017
NET PROFIT
2364 2834 2600

63. ESAB INDIA LTD
63
CHAPTER 4.2– COMMON SIZE STATEMENTS
MEANING-COMMON SIZE BALANCE SHEET
Common size balance sheet shows the percentage relation of each asset/liability to total
asset/liability including capital (equity and liabilities). In common size balance sheet, total asset
or total equity and liabilities are taken as 100 and all the figures are expressed as percentage of the
total.
OBJECTIVESOF COMMON SIZE BALANCE SHEET
To analyse the changes in individual items of balance sheet.
To see the trend of different items of assets, equity and liability
To assess the financial soundness and understand financial strategy
MEANING – COMMON SIZE PROFIT AND LOSS (INCOME STATEMENT)
Common size statement of profit and loss, revenue from operations (net sales) is taken as 100 and
expenses are expressed as percentage of revenue from operation (net sales). Common size
statement of profit and loss may be prepared for different periods or for two firms. It shows the
relative efficiency in operating the business.
OBJECTIVES OF COMMON SIZE INCOME STATEMENT
To analyse change in individual items of income statement
To study the trend in different items of incomes and expenses
To assess the efficiency

64. ESAB INDIA LTD
64
PARTICULARS 2014-2015 2015-2016 2016-2017
(ALLAMOUNTIN LAKH) RS % RS % RS %
SHAREHOLDER'S FUNDS
SHARECAPITAL 1539 1539 1539
RESERVES ANDCAPITAL 27365 28905 78.3 30015 31554 81.8 32615 34154 79.9
NON CURRENTLIABLITIES
DEFERREDTAXLIABLITIES (NET)
OTHERLONGTERM LIABLITIES 119 127 383
LONGTERM PROVISIONS 256 375 1.01 294 421 1.09 317 700 1.63
CURRENTLIABLITY
TRADEPAYABLE 5521 4314 5772
OTHERCURRENTLIABLITY 1076 1326 1323
SHORTTERM PROVISION 992 7589 20.5 942 6582 17 773 7868 18.41
TOTAL 36869 100 38557 100 42722 100
FIXED ASSETS
TANGIBLEFIXEDASSET 8159 7734 7520
INTANGIBLEFIXEDASSET 145 68 183
CAPITALWORK IN PROGRESS 124 525 723
DEFERREDTAXASSETS (NET) 62 178 296
LONGTERM LOANS ANDADVANCES 1568 1340 1359
OTHERASSETS 236 241 1919
10294 27.9 10086 26.15 12000 28.08
CURRENTASSET
CURRENTINVESTMENTS 12189 11977 14386
INVENTORIES 5396 5846 6283
TRADERECEIVABLES 4370 4544 4798
CASHANDBANK BALANCES 3493 5068 4143
SHORTTERM LOANS ANDADVANCES 1066 958 978
OTHERASSETS 61 26574 72.07 78 28471 73.84 134 30722 71.9
TOTAL 36869 100 38557 100 42722 100
COMMON SIZE BALANCE SHEET OF ESAB INDIA LTD

65. ESAB INDIA LTD
65
COMMON SIZE INCOME STATEMENT OF ESAB INDIA LTD
PARTICULARS 2014-2015 % 2015-2016 % 2016-2017 %
INCOME RS RS RS
(ALLAMOUNTINLAKH)
NETREVENUEFROM OPERATIONS 55185 100 45095 100 47372 100
OTHERINCOME 1146 2.07 800 1.77 1285 2.71
TOTALREVENUE 56331 102 45895 101.8 48657 102.71
EXPENSES
COSTOF RAW MATERIALSS 29098 52.7 23220 51.49 24287 51.2
PURCHASES OF TRADEDGOODS 5813 10.3 5188 11.5 5669 11.96
WORK IN PROGRESS 774 1.37 -312 0.69 -181 0.38
EMPLOYEEBENEFITEXPENSES 5584 9.91 4681 10.38 5233 11.04
DEPRECIATION 1375 2.44 952 2.11 1027 2.16
OTHEREXPENSES 8865 15.7 7703 17.08 8074 17.04
TOTALEXPENSES 51509 91.4 41432 91.8 44109 90.65
PROFITBEFOREEXCEPTIONALAND TAX 4822 4463 4548
LESS:EXCEPTIONALITEMS 1761 3061 5.43 353 4110 8.9 911 3637 7.47
TAXEXPENSES
CURRENTTAX 1079 1392 1155
DEFERREDTAX -382 -116 -118
697 1276 1037
PROFITFOR THEYEAR 2364 4.19 2834 6.28 2600 5.34

66. ESAB INDIA LTD
66
CHAPTER 4.3 - RATIO ANALYSIS
A ratio analysis is a quantitative analysis of information contained in a company’s financial
statements. Ratio analysis is based on line items in financial statements like the balance sheet,
income statement and cash flow statement; the ratios of one item – or a combination of items - to
another item or combination are then calculated. Ratio analysis is used to evaluate various aspects
of a company’s operating and financial performance such as its efficiency, liquidity, profitability
and solvency. The trend of these ratios over time is studied to check whether they are improving
or deteriorating.
CLASSIFICATION OF RATIO ANALYSIS
 TRADITIONAL RATIOS
 FUNCTIONAL RATIOS
Traditional Ratios are classified into
 Balance sheet ratios/financial ratios
 profit and loss account ratios/operating ratios
 composite/inter-statement ratios
Functional Ratios are classified into
 Profitability ratios
 Activity/Turnover/performance ratios
 Liquidity ratios
 Solvency ratios
ADVANTAGES OF RATIO ANALYSIS
 It facilitates the accounting information to be summarized and simplified in a required
form.
 It highlights the inter-relationship between the facts and figures of various segments of
business.
 Ratio analysis helps to remove all types of wastages and inefficiencies.

67. ESAB INDIA LTD
67
 It is used as a measuring rod for effective control of performance of business activities.
 It helps to determine the performance of liquidity, profitability and solvency position
of the business concern.
 It is an effective tool which is used for measuring the operating results of the
enterprises.
STEPS IN RATIO ANALYSIS
The following are the steps to be taken in computing the ratio analysis. They are
 Collection of Information
 Computation of Ratios
 Making Comparisons
 Arising at Decision on Comments
 Interpretation and Reporting

68. ESAB INDIA LTD
68
4.3.1 - QUICK RATIO
The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a
company’s ability to meet its short-term obligations with its most liquid assets. In accounting, the
term liquidity is defined as the ability of a company to meet its financial obligations as they come
due. The liquid ratio, then, is a computation that is used to measure a company's ability to pay its
short-term debts. The ratio is expressed as “pure”.
QUICK RATIO = QUICK ASSETS or LIQUID ASSETS
CURRENT LIABILTIES
QUICK ASSETS = CURRENT ASSETS - STOCK
TABLE OF QUICK RATIO 4.3.1
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015-2016 2016 -2017
LIQUID ASSETS
(AMOUNT IN
LAKHS)
21179 22625 24439
CURRENT
LIABLITIES 7589 6582 7868
PURE RATIO 2.7 3.43 3.10

69. ESAB INDIA LTD
69
QUICK RATIO CHART
INTERPRETATION
 The company has sufficient funds to pay its current liabilities in the year 2015, 2016,
2017.
 In the years 2014-2015, 2015-2016, 2016 -2017 the quick ratio is MORE than ideal
ratio 1:1 hence the company’s liquidity position is NORMAL.
 The ratio’s increase with decrease in current liability by 2015- 2016.
 The liquid assets of the company are determined by the deducting inventory and
prepaid expenses from current assets.
 If there is no stock or prepaid expenses, then the current ratio and the liquid ratio will
be same.
0
0.5
1
1.5
2
2.5
3
3.5
4
2014 - 2015 2015 - 2016 2016 - 2017
2.7 3.43 3.1

70. ESAB INDIA LTD
70
4.3.2 - DEBT EQUITY RATIO
Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated by
dividing a company's total liabilities by its stockholders' equity. The D/E ratio indicates how much
debt a company is using to finance its assets relative to the amount of value represented in
shareholders' equity. The ratio is expressed as “pure”.
Debt equity ratio = LONG TERM DEBT
TOTAL EQUITY
TABLE OF DEBT EQUITY RATIO 4.3.2
(ALL AMOUNT IN LAKHS)
PARTICULARS
(AMT IN LAKHS)
2014 - 2015 2015 - 2016 2016 - 2017
LONG TERM DEBT 375 421 700
SHAREHOLDERS
FUND
28905 31554 34154
DEBT EQUITY RATIO 0.012 0.013 0.020

71. ESAB INDIA LTD
71
INTERPRETATION
 Debt equity ratios usually expressed in proportions.
 Debt equity has been increased in the year 2016-2017 by comparing with 2014-2015 and
2015-2016.
 The D/E ratio indicates how much debt a company is using to finance its assets relative to
the amount of value represented in shareholders' equity.
 It also shows the extent to which the enterprise depends on external funds for business.
0
0.005
0.01
0.015
0.02
0.025
2014 - 2015 2015 - 2016 2016 - 2017
DEBT EQUITYRATIO
0.012 0.013 0.02

72. ESAB INDIA LTD
72
4.3.3 – CURRENT RATIO
The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-
term obligations. To gauge this ability, the current ratio considers the current total assets of a
company (both liquid and illiquid) relative to that company’s current total liabilities. The ratio is
expressed as “pure”.
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILTIES
TABLE OF CURRENT RATIO 4.3.3
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015 - 2016 2016 - 2017
CURRENT ASSET 26575 28471 30722
CURRENT LIABLITY 7589 6582 7868
PURE RATIO 3.50 4.32 3.90

73. ESAB INDIA LTD
73
INTERPRETATION
 The long-term solvency position of the firm in the year 2015-2016 is higher than the
2014-2015 and 2016-2017.
 A high ratio in the year 2015-16 indicates "safe" liquidity.
 There is increase in current asset and current liability when compared to 2015 – 2016
and 2014 – 2015.
 The ratio is lower by the year 2016 – 2017 compared to 2015 – 2016.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2014 - 2015 2015 - 2016 2016 - 2017
CURRENT RATIO
3.5 4.32 3.9

74. ESAB INDIA LTD
74
4.3.4 – WORKING CAPITAL TURNOVER RATIO
This ratio shows the number of times working capital has been employed in process of carrying
business. Higher the ratio better the efficiency in the utilization of working capital. This ration is
expressed through “times”.
Working capital = current assets – current liabilities
Working capital turnover ratio = Revenue from operations
Working capital
TABLE OF WORKING CAPITAL TURNOVER RATIO 4.3.4
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015 - 2016 2016 - 2017
REVENUE FROM
OPERATIONS
55185 45095 47372
WORKING
CAPITAL
18986 21889 22854
RATIO IN TIMES 2.90 2.06 2.07

75. ESAB INDIA LTD
75
INTERPRETATION
 This ratio is considered to be a better measure than inventory turnover ratio as it shows the
efficiency or inefficiency in use of working capital
 The ratio is higher when compared in the year 2014 – 2015
 There is decrease in revenue from operations by 2016- 2017 when compared to 2014 –
2015.
 There is increase in working capital by 2016 – 2017.
0
0.5
1
1.5
2
2.5
3
3.5
2014 - 2015 2015 - 2016 2016 - 2017
WORKING CAPITALTURNOVER RATIO
2.9 2.06 2.07

76. ESAB INDIA LTD
76
4.3.5 – PROPRIETARY RATIO
This ratio is important for creditors as they can ascertain the portion of shareholder’s funds in the
total asset employed in the firm.it also shows the financial strength of the enterprise. A high ratio
means adequate safety for creditors. But a very high ratio means mix of proprietor’s funds and
loan funds which results in lower return on investment. The ratio is expressed as “proportion”
Proprietary ratio = Shareholder’s funds
Total assets
TABLE OF PROPRIETARY RATIO 4.3.5
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015 - 2016 2016 - 2017
SHAREHOLDER’S
FUNDS
28905 31554 34154
TOTAL ASSETS 36869 38557 30722
RATIO IN PROPORTION 0.78 0.81 1.11

77. ESAB INDIA LTD
77
INTERPRETATION
The ratio shows an increase by 2016- 2017
Shareholders’ funds have increased by 2016 – 2017 compared to 2014 – 2015.
Total assets have increased by 2015 – 2016
A high ratio means adequate safety for creditors. But a very high ratio means mix of
proprietor’s funds and loan funds which results in lower return on investment.
0
0.2
0.4
0.6
0.8
1
1.2
2014 - 2015 2015 - 2016 2016 - 2017
PROPRIETARYRATIO
0.78 0.81 1.11

78. ESAB INDIA LTD
78
4.3.6 – TOTAL ASSET TO DEBT RATIO
This ratio measures the safety margin available to lenders of long term debts. It measures the extent
to which debt is being covered by assets. The objective of computing the ratio is to establish
relationship between total assets and debt of business. The ratio is expressed as “pure”.
TOTAL ASSETS TO DEBT RATIO = TOTAL ASSETS
DEBT
TABLE OF TOTAL ASSET TO DEBT RATIO 4.3.6
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015 - 2016 2016 - 2017
TOTAL ASSETS 36869 38557 42722
DEBT 375 421 700
PURE RATIO 9.8 9.1 6.1

79. ESAB INDIA LTD
79
INTERPRETATION
 There is increase in total assets by 2016 – 2017 when compared to 2014 – 2015.
 The debt has also simultaneously increased for the year 2016 – 2017.
 The ratio is higher in 2014 – 2015 compared to 2016 – 2017.
 The objective of computing the ratio is to establish relationship between total assets and
debt of business.
 High ratio determines high safety to lenders of business, it measures extent of debt covered
by assets.
0
2
4
6
8
10
12
2014 - 2015 2015 - 2016 2016 - 2017
TOTALASSET TO DEBTRATIO
9.8 9.1 6.1

80. ESAB INDIA LTD
80
4.3.7 - NET PROFIT RATIO
This ratio establishes the relationship between net profit and revenue from operations. It shows the
percentage of net profit earned on revenue from operations. The ratio is expressed in percentage.
NET PROFIT RATIO = Net profit before interest & tax
Revenue from operations (net sales) X 100
TABLE OF NET PROFIT RATIO 4.3.7
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015 - 2016 2016 - 2017
PROFIT BEFORE
TAX 3061 4110 3637
REVENUE FROM
OPERATION
55185 45095 47372
RATIO IN % 5.54 9.11 7.67

81. ESAB INDIA LTD
81
INTERPRETATION
 Net profit ratio is computed by deducting all direct costs and indirect costs. Non-operating
expenses and non-operating incomes are excluded.
 It is overall efficiency of the business. Higher the net profit, better the business. Helps to
determine operational efficiency in business.
 The ratio is higher in 2015 – 2016 compared to other two years
 Revenue from operations is higher by 2014 – 2015
 There is decrease in profit before tax by 2016- 2017
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
2014 - 2015 2015 - 2016 2016 - 2017
NET PROFIT RATIO
5.54% 9.11% 7.67%

82. ESAB INDIA LTD
82
4.3.8 – RETURN ON CAPITAL EMPLOYED
This ratio assesses overall performance of the enterprise. It measures how efficiently the resources
entrusted to the business are used. Ratio is computed by dividing the net profit before interest and
tax by capital employed.
ROI = Net profit before interest Tax and Dividend
Capital employed X 100
TABLE OF RETURN ON CAPITAL EMPLOYED4.3.8
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015 - 2016 2016 - 2017
PROFIT BEFORE
TAX 3061 4110 3637
CAPITAL EMPLOYED
29280 31975 34854
RATIO IN % 10.4 12.8 10.4

83. ESAB INDIA LTD
83
INTERPRETATION:
 Capital employed increased in 2016 – 2017 when compared to other two years.
 Profit before tax increased by 2015- 2016.
 Return on capital employed shows an increase by 2015 – 2016
 It assesses overall performance of the enterprise .it measures how efficiently the resources
of the business are used.
 It is a fair measure of the profitability of any concern with the result that the performance
of different industries may be compared.
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
2014 - 2015 2015 - 2016 2016 - 2017
RETURN ON CAPITALEMPLOYED
10.40% 12.80% 10.40%2

84. ESAB INDIA LTD
84
4.3.9 – GROSS PROFIT RATIO
Gross profit ratio establishes the relationship of gross profit and revenue from operations of an
enterprise. The ratio is calculated and presented in percentage.
GROSS PROFIT RATIO = GROSS PROFIT X 100
REVENUE FROM OPERATION
GROSS PROFIT = REVENUE FROM OPERATION (NET SALES) – COST OF REVENUE
TABLE OF GROSS PROFIT RATIO 4.3.9
(ALL AMOUNT IN LAKHS)
PARTICULARS 2014 - 2015 2015 - 2016 2016 - 2017
NET SALES 53876 43912 45818
COST OF
REVENUE
29098 23220 24287
GROSS PROFIT 24778 20692 21531
RATIO IN % 45.9 47.12 46.9

85. ESAB INDIA LTD
85
INTERPRETATION
 The objective of determining the gross profit ratio is to know the efficiency with which
production and purchase operations and selling operations are carried on.
 There is increase in the ratio by 2015 – 2016
 Fluctuation in gross profit ratio is the result of change in revenue from operation.
 This ratio shows average margin of goods sold.
0.45
0.45
0.46
0.46
0.46
0.46
0.46
0.47
0.47
0.47
0.47
0.47
2014 - 2015 2015 - 2016 2016 - 2017
GROSS PROFITRATIO
45.90% 47.12% 46.90%

86. ESAB INDIA LTD
86
4.3.10 – OPERATING RATIO
This ratio is computed to establish relationship between operating costs and revenue from
operation. Operating cost are associated with the operating activities of the business.
OPERATING RATIO = OPERATING COST X 100
REVENUE FROM OPERATION (NET SALES)
OPERATING COST = COST OF REVENUE + OPERATING EXPENSES
OPERATING EXPENSE= EMPLOYEE BENEFIT EXPENSE + DEPRECIATION + OTHER
TABLE OF OPERATING RATIO 4.3.10
(ALL AMOUNT IN LAKH)
PARTICULARS 2014 – 2015 2015 – 2016 2016 - 2017
NET SALES 53876 43912 45818
OPERATING
COST
44922 36556 38621
RATIO IN % 83.3 83.2 84.2

87. ESAB INDIA LTD
87
INTERPRETATION
 There is increase in ratio by 2016 – 2017
 The main objective of computing operating ratio is to assess the operational efficiency of
the business.
 It shows the percentage of revenue from operations is absorbed by the cost of goods sold
and operating expenses.
 Operating profit ratio and operating ratio are complementary to each other.
0.83
0.83
0.83
0.83
0.83
0.84
0.84
0.84
0.84
0.84
2014 - 2015 2015 - 2016 2016 - 2017
OPERATING RATIO
83.30% 83.20% 84.20%

88. ESAB INDIA LTD
88
CHAPTER 5
SWOT ANALYSIS
A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favourable and unfavourable to achieve that objective. The degree to which the internal
environment of the firm matches with the external environment is expressed by the concept
of strategic fit.
Identification of SWOTs is important because they can inform later steps in planning to achieve
the objective. First, the decision makers should consider whether the objective is attainable, given
the SWOTs. If the objective is not attainable a different objective must be selected and the process
repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful information
for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful
and find their competitive advantage.

89. ESAB INDIA LTD
89
SWOT ANALYSIS OF ESAB INDIA LTD
Strengths
The strengths of the manufacturing industry are that it is relatively stable. Although the demand
for manufacturing tends to fluctuate with the ups and downs of the economy, it is characterized by
regular periods of recovery following any downturns. Moreover, manufacturing has become highly
efficient over the last century, with the ability to maximize both the productivity of the workers
and machines to maximize profits.
Weaknesses
A weakness of the manufacturing industry is that much of it is built on the production of non-
essential goods. This means that a severe downturn in the economy can have a crippling effect on
it. Another weakness is that it is a mature industry. This means that there is heavy competition and
little room for growth. As a result, the manufacturing industry can be a cash cow for those who are
already in it but may be unattractive to new entrants.
Opportunities
Opportunities in the manufacturing industry are in the technology and bio-technology areas. These
are growing market segments with higher profit margins. Additionally, they are knowledge-
dependent market segments that require highly specialized workers, which makes it difficult for
low wage countries to compete in this market segment, thereby providing an edge to more
industrialized countries. Foreign markets with a growing middle class are providing opportunities
for technology and bio-technology manufacturers to increase their profitability through exports.
Threats
The largest threats to the manufacturing industry in developed nations are from low wage
countries. The low wages of these countries have made it impossible for many businesses in
developed nations to compete, requiring them to either close or move overseas to find cheap labor.
Increasingly, India is an even bigger threat to the manufacturing industry, with its ability to supply
highly educated workers at low wages to fill roles in the high-tech manufacturing market segment.

90. ESAB INDIA LTD
90
CHAPTER 6
CONCLUSION
This project emphasises on the role and responsibilities of a company secretary in an organization.
The various ratios calculated and the comparative statements drawn, give us an insight into the
financial performance of the company. This internship has been an excellent and rewarding
experience. It has provided an opportunity for students to meet and network with so many people
that will help them with opportunities in the future. Moreover, it taught about time management
and office discipline.
LATEST FINDINGS OF ESAB INDIA LTD
Larsen and Toubro Ltd (L&T), India’s biggest engineering company, has agreed to sell unit
EWAC Alloys Ltd to the UK-based ESAB Holdings Ltd for Rs 522 crore ($80 million).
The deal is likely to be completed within two months, L&T said in a stock-exchange filing on
Wednesday.This is L&T’s second sale of a wholly owned subsidiary within two months; it had
agreed to sell unit L&T Cutting Tools Ltd to a company owned by billionaire US investor Warren
Buffett-led Berkshire Hathaway Inc for Rs 174 crore.
EWAC makes welding products such as electrodes, gas brazing rods, welding torches and
accessories at its factory in Ankleshwar, Gujarat. The company was started as a joint venture of
L&T and Germany’s Messer Eutectic Castolin Group. In 2011, it became a wholly owned
subsidiary of L&T.L&T said EWAC posted revenue of Rs 211.2 crore for the year through March
2017. This is about 0.19% of L&T’s consolidated revenue.
ESAB makes a range of products for welding and cutting processes. The company’s origin dates
back more than a hundred years when it was started by a Swedish engineer in 1904. It shifted its
headquarters to the UK in 2002 and was acquired by US-based Colfax Corp in 2012.
The group operates in India through Mumbai-listed ESAB India Ltd. ESAB India started its
operations in 1987 by acquiring the welding business of Peico Electronics & Electricals Ltd (now
Philips India Ltd), according to its website.

91. ESAB INDIA LTD
91
COMPANY PROFILE OVERVIEW
ESAB India Limited engages in the manufacture and marketing of welding and cutting products.
The company offers welding consumables, reclamation consumables, arc equipment, industrial
gas equipment, environment products, and cutting systems. ESAB's welding consumables include
standard consumables, such as mild steel general purpose electrodes, low hydrogen electrodes, and
gas welding fluxes; and special consumables, including high cellulosic electrodes, low alloy
electrodes, stainless steel electrodes, TIG rods, MIG/MAG wires, flux cored wires, submerged arc
welding wires and fluxes, and miscellaneous consumables. Reclamation consumables comprise
consumables for repair and maintenance. The company's arc equipment consists of welding
transformers and rectifiers, inverters, engine driven welders, MIG/MAG equipment, TIG
equipment, air plasma cutting packages, welding accessories, automatic submerged arc welding,
handling automats, mechanized TIG welding, and engineered and flexible mechanized welding
machines. ESAB's industrial gas equipment includes blowpipes, regulators, small cutting
machines, nozzles and tips, and flashback arrestors. The company's cutting systems comprise
magnetic profile and optical profile cutting machines, CNC profile cutting machines, retrofitting
old machines, and nesting software. ESAB's working environment products consist of capturing
arms, exhaust extractors, fans, hose reel, filters, and curtains. Incorporated in 1987, the company's
office is based in Tamil Nadu.
BIBLIOGRAPHY
WWW.ESABINDIA.COM
MANAGEMENT ACCOUNTING – T.S REDDY &MURTHY
ANALYSIS OF FINANCIAL STATEMENTS – SULTAN CHAND