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Battery management system (BMS) forms a crucial system component in various applications like electric vehicles (EV), hybrid electric vehicles (HEV), uninterrupted power supplies (UPS), telecommunications and so on. The accuracy of these systems has always been a point of discussion as they generally give an error of maximum 10% considering all the parameters together. In this paper a system is presented which is developed through a mathematical approach to monitor all the crucial battery parameters and limit the error to not more than 5% for a valve regulated lead acid (VRLA) battery. While the present prototype system accounts only for discharging under various conditions, it is proposed to incorporate intelligent charging system into the future prototype to make it a reliable component in overall system management.