ital Management in Pharma

Report Submitted
by Group 6
Tushar Agarwal (H002)
Supriya Kirtiman (H027)
Kshitij Mittal (H037)
Rupali Singhania (H061)
Nirati Sinha (H062)

Contents
Introduction................................................................................................................................
Growth Story of Pharmaceutical Industry in India....................................................................
Liquidity Measurement Ratios...................................................................................................
Current Ratio..........................................................................................................................
Quick Ratio............................................................................................................................
Liquidity ratio analysis of Sun Pharma..............................................................................
Various Liquidity Measurement ratios for Sun Pharma.....................................................
Liquidity ratio analysis of Lupin........................................................................................
Various Liquidity Measurement ratios for Lupin...............................................................
Liquidity ratio analysis of Cipla.........................................................................................
Various Liquidity Measurement ratios for Cipla................................................................
Cash Conversion Cycle............................................................................................................
Cash Conversion Cycles (CCC) of top 3 Companies (By Market Share)..........................
Working Capital requirement and MPBF.................................................................................
Working Capital...............................................................................................................
MPBF (Maximum permissible bank financing)..............................................................
Working capital requirements and Maximum Permissible Bank Finance for Lupin
..........................................................................................................................................
Working capital requirements and Maximum Permissible Bank Finance for Cipla
..........................................................................................................................................
References................................................................................................................................
Exhibit......................................................................................................................................
Financial Statements of Top 3 Indian Pharma Companies (By Market Share)...................
Sun Pharma Balance Sheet..............................................................................................
Sun Pharma Income Statement........................................................................................

Pharmaceutical Industry in India

Introduction
The Pharmaceutical industry in India is the world's third-largest in terms of volume.
According to Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the
total turnover of India's pharmaceuticals industry between 2008 and September 2009 was
US$21.04 billion and the domestic market was worth US$12.26 billion. The industry
holds a market share of $14 billion in the United States. According to Brand India Equity
Foundation, the Indian pharmaceutical market is likely to grow at a compound annual
growth rate (CAGR) of 14-17 per cent in between 2012-16.

Review of Literature
Realising the dearth of pertinent literature on working capital management, Walker in his
study (1964) made a pioneering effort to develop a theory of working capital
management by empirically testing, though partially, three propositions based on riskreturn trade-off of working capital management. Walker studied the effect of the change
in the level of working capital on the rate of return in nine industries for the year 1961 and
found the relationship between the level of working capital and the rate of return to be
negative. On the basis of this observation, Walker formulated three following
propositions:
Proposition I If the amount of working capital is to fixed capital, the amount of risk the
firm assumes is also varied and the opportunities for gain or loss are increased.
Proposition II The type of capital (debt or equity) used to finance working capital
directly affects the amount of risk that a firm assumes as well as the opportunities for gain
or loss.
Proposition III The greater the disparity between the maturities of a firms debt
instruments and its flow of internally generated funds, the greater the risk and vice-versa.
Chakraborty (1973)24 approached working capital as a segment of capital employed
rather than a mere cover for creditors. He emphasized that working capital is the fund to
pay all the operating expenses of running a business. He pointed out that return on capital
employed, an aggregate measure of overall efficiency in running a business, would be
adversely affected by excessive working capital. Similarly, too little working capital
might reduce the earning capacity of the fixed capital employed over the succeeding
periods. For knowing the appropriateness of working capital amount, he applied
Operating Cycle (OC) Concept.

Growth Story of Pharmaceutical Industry in India

India is now among the top five pharmaceutical emerging markets of the world. Exports
of pharmaceuticals products from India increased from US$6.23 billion in 200607 to
US$8.7 billion in 200809 a combined annual growth rate of 21.25%. According to
PricewaterhouseCoopers (PWC) in 2010, India joined among the league of top 10 global
pharmaceuticals markets in terms of sales by 2020 with value reaching US$50 billion.
The government started to encourage the growth of drug manufacturing by Indian
companies in the early 1960s, and with the Patents Act in 1970. However, economic
liberalisation in 90s enabled the industry to become what it is today. This patent act
removed composition patents from food and drugs, and though it kept process patents,
these were shortened to a period of five to seven years. The lack of patent protection made
the Indian market undesirable to the multinational companies that had dominated the
market, and while they streamed out. Indian companies carved a niche in both the Indian
and world markets with their expertise in reverse-engineering new processes for
manufacturing drugs at low costs. Although some of the larger companies have taken
baby steps towards drug innovation, the industry as a whole has been following this
business model until the present. India's biopharmaceutical industry clocked a 17 percent
growth with revenues of Rs. 137 billion ($3 billion) in the 200910 financial year over the
previous fiscal. Bio-pharma was the biggest contributor generating 60 percent of the
industry's growth at Rs. 88.29 billion, followed by bio-services at Rs. 26.39 billion and
bio-agri at Rs. 19.36 billion. In 2013, there were 4,655 pharmaceutical manufacturing
plants in all of India, employing over 345 thousand workers.

* Latest Data available with the Department of Pharmaceuticals, Govt. Of

India
The top 3 pharmaceutical companies in India in terms of Market Capitalisation
are
S.No.
1
2
3
4
5

CompanyName
SunPharma
Lupin
DrReddysLabs
Cipla
RanbaxyLabs

MarketCap
216,643.74
90,079.71
59,169.12
56,367.82
35,287.50

NetSales
2,828.79
8,939.38
9,728.00
9,380.29
6,864.94

* All Figures are in Rupees Crores (Source: Money control)

Liquidity Measurement Ratios

Following are the liquidity measurement ratios:

Current Ratio
The current ratio is a popular financial ratio used to test a company's liquidity (also
referred to as its current or working capital position) by deriving the proportion of current
assets available to cover current liabilities.
A high current ratio is not necessarily good, and a low current ratio is not necessarily bad.
Contrary to popular perception, the ubiquitous current ratio, as an indicator of liquidity, is
flawed because it's conceptually based on the liquidation of all of a company's current
assets to meet all of its current liabilities. In reality, this is not likely to occur. Investors
have to look at a company as a going concern. It's the time it takes to convert a company's
working capital assets into cash to pay its current obligations that is the key to its
liquidity. In a word, the current ratio can be "misleading."

Quick Ratio
The quick ratio is also called as the quick assets ratio or the acid-test ratio. It is a liquidity
indicator that further refines the current ratio by measuring the amount of the most liquid
current assets there are to cover current liabilities. The quick ratio is more conservative
than the current ratio because it excludes inventory and other current assets, which are
more difficult to turn into cash. Therefore, a higher ratio means a more liquid current
position.

Liquidity ratio analysis of Sun Pharma

Current assets

2010-11

2011-12

2012-13

2013-14

Inventory(total)

618.26

640.07

868.76

918.38

Current Investments

1822.83

844.98

941.05

860.00

Trade Receivables

542.62

713.48

737.53

452.75

Cash and Bank

1250.91

1327.71

431.12

141.48

Other Current Assets

40.92

54.01

59.29

249.011
309.32

Short Term Loans and

Advances

418.35

390.61

849.5

Total Current Assets

4693.89

3970.96

3887.25

2930.94

Trade payables

269.66

400.19

363.27

380.06

Other current liabilities

42.08

62.54

145.15

233.61

Short term Borrowings

50.53

40.3

38.49

2404.37

Short term provisions

424.42

515.49

608.15

688.03

Current Liabilities

Total
liabilities

Current

786.69

3706.07
1018.52

1155.06

Various Liquidity Measurement ratios for Sun Pharma

Ratios

Formula
Current
Assets/Current
Liabilities
(Cash
&
Equivalents +
Short
Term
Investments +
Accounts
Receivable)/Cu
rrent Liabilities

Curren
t Ratio

Quick
Ratio

2010-11

2011
-12

2012
-13

201314

3.09

2.68

2.31

0.79

2.74

2.33

1.82

1.03

Liquidity ratio analysis of Lupin

Current assets

2010-11

2011-12

2012-13

2013-14

Inventory(total)
Trade Receivables
Cash and Bank

841.11
1234.28
37.46

1123.56
1490.80
19.20

1330.83
1874.27
20.12

1,372.24

Other Current Assets

112.78

121.05

232.66

Short Term Loans and

Advances

484.21

268.44

284.01

Total Current Assets

2709.84

3023.05

3741.89

Trade payables

587.62

698.42

869.42

Other current liabilities

78.31

250.28

218.93

Short term borrowings

757.4

857.73

526.09

Short term provisions

458.67

220.23

242.71

Total
liabilities

1594.85

2026.66

1857.15

Current Liabilities

Current

2,859.92
146.28

Various Liquidity Measurement ratios for Lupin

Ratios

Formula

Curren
t Ratio

Current
Assets/Current
Liabilities

Quick
Ratio

201112

2010-11

1.1

(Cash
&
Equivalents
+
Short Term
Investments
+
Accounts
Receivable)/Curr
ent Liabilities

201213

1.19

1.75

1.59

1.59

1.69

201
314
2.8
1
2.2
7

Liquidity ratio analysis of Cipla

Current assets

2010-11

2011-12

2012-13

2013-14

Inventory(total)

1883.16

1824.5

2343.37

2511.16

Current Investments
Trade Receivables

223.59
1497.04

573.32
1519.31

2087.46
1645.22

258.85
1728.10

Cash and Bank

83.98

55.06

105.07

46.04

Other Current Assets

85.33

53.98

2.28

38.26
515.56

Short Term Loans and

Advances

771.30

773.79

652.79

Total Current Assets

4544.4

4799.96

6836.19

5097.97

Trade payables

661.67

685.85

827.09

962.56

Other current liabilities

300.40

232.79

242.62

333.20

Short term Borrowings

437.56

10

965.26

876.91

Short term provisions

198.88

220.64

229.63

244.07

Total
liabilities

1598.51

1149.28

2246.6

Current Liabilities

Current

2172.67

Various Liquidity Measurement ratios for Cipla

Ratios

Formula

2010-

2011-12

2012

2013-

11
Current
Assets/Current
Liabilities
(Cash
&
Equivalents +
Short Term
Investments +
Accounts
Receivable)/Cu
rrent Liabilities

Curren
t Ratio
Quick
Ratio

-13

2.59

3.18

1.95

2.06

1.95

1.68

14

1.92

1.50

Cash Conversion Cycle

This liquidity metric expresses the length of time (in days) that a company uses to sell
inventory, collect receivables and pay its accounts payable. The cash conversion cycle
(CCC) measures the number of days a company's cash is tied up in the production and
sales process of its operations and the benefit it gets from payment terms from its
creditors. The shorter this cycle, the more liquid the company's working capital position
is. The CCC is also known as the "cash" or "operating" cycle.
Cash Conversion Cycle= DIO+DSO-DPO
Days Inventory Outstanding (DIO): This addresses the question of how many days it
takes to sell the entire inventory. The smaller this number is, the better.
DIO = Average inventory/COGS per day
Average Inventory = (beginning inventory + ending inventory)/2
Days Sales Outstanding (DSO): This looks at the number of days needed to collect on
sales and involves AR. While cash-only sales have a DSO of zero, people do use credit
extended by the company, so this number will be positive. Again, smaller is better.
DSO = Average AR / Revenue per day
Average AR = (beginning AR + ending AR)/2
Days Payable Outstanding (DPO): This involves the company's payment of its own
bills or AP. If this can be maximized, the company holds onto cash longer, maximizing its
investment potential; therefore, a longer DPO is better.
DPO = Average AP/COGS per day
Average AP = (beginning AP + ending AP)/2

Cash Conversion Cycles (CCC) of top 3 Companies (By

Market Share)
Companies

March12

March13

March14

SunPharma

87Days

81Days

59Days

DrReddysLabs

110Days

115Days

116Days

Lupin

89Days

80Days

76Days

Cipla

124Days

114Days

108Days

CadilaHealthcare

72Days

74Days

66Days

Inference:
If we see the above table we can clearly notice that Cadila Healthcare has the lowest Cash
Conversion Cycle of the top 5 companies initially but it is gradually increasing which shows
they are not managing their cash cycles. Similarly Sun Pharma is also trying to redeem itself
and cement its no.1 position in terms of market share by speeding up its CCC. Dr Reddys Labs
seems to be the worst of the top 5 in terms of CCC. This shows that too much inventory is build
up and cash is tied up in goods that cannot be sold - this is not good news for the company.

Working Capital requirement and MPBF

Working Capital

Working capital= Current assets Current Liabilities

Whatever may be the organization, working capital plays an important role, as the company
needs capital for its day to day expenditure. Thousands of companies fail each year due to poor
working capital management practices. Entrepreneurs often don't account for short term
disruptions to cash flow and are forced to close their operations.
In simple term, working capital is an excess of current assets over the current liabilities. Good
working capital management reveals higher returns of current assets than the current liabilities to
maintain a steady liquidity position of a company. Otherwise, working capital is a requirement of
funds to meet the day to day working expenses. So a proper way of management of working
capital is highly essential to ensure a dynamic stability of the financial position of an
organization.

MPBF (Maximum permissible bank financing)

It is the maximum financing that a company can avail from the bank to finance
its working capital requirements. The maximum amount any bank can give to
a company is 15 % of its own Tier-1 capital which is done in order to spread
the risk.
MPBF=Modified MPBF
Current assets(less export receivables)
- Current Liabilities
-------------------------Working capital
Self financing=25% of current assets
MPBF=Working capital-self financing
Modified MPBF=MPBF +export receivables
Out of MPBF 20% is cash credit while 80 % is working capital demand loan
(WCDL).
All figures below are in Rupees Crores

Working capital requirements and Maximum Permissible Bank

Finance for Sun Pharma

Current assets

2010-11

Inventory(total)

618.26

Trade Receivables

542.62

2011-12

2012-13

640.07

868.76

713.48

737.53

Cash and Bank

1250.91

Other Current Assets

40.92

Short Term Loans and

Advances

418.35

Total
Current
Assets(except
Current investment)

2871.06

1327.71

431.12

54.01

59.29

390.61

849.5

3125.88

2946.2

400.19

363.27

62.54

145.15

515.49

608.15

978.22

1116.57

2147.66

1829.63

781.47

736.55

1366.19

1093.08

273.238

218.616

1092.952

874.464

Current Liabilities
Trade payables

269.66

Other current liabilities

42.08

Short term provisions

424.42

Total
Current
liabilities ( Except
bank borrowing)

736.16

Working Capital

2134.9

Self-financing (25 %
of total current assets)

717.765

MPBF

1417.135

MPBF breakdown
20% cash credit

283.427

80% WCDL

1133.708

Working capital requirements and Maximum Permissible Bank

Finance for Lupin

Current assets

2010-11

Inventory(total)

841.11

Trade
Receivables

1234.28

Cash and Bank

37.46

Other Current
Assets
Short
Term
Loans
and
Advances

2012-13

1123.56

1330.83

1490.80

1874.27

19.20

20.12

121.05

232.66

268.44

284.01

3023.05

3741.89

698.42

869.42

250.28

218.93

220.23

242.71

1168.93

1331.06

1854.12

2410.83

755.7625
1098.3575

935.4725
1475.3575

112.78

484.21

Total Current
Assets(except
current
investment)

2011-12

2709.84

Current
Liabilities
Trade payables
Other current
liabilities
Short
term
provisions

587.62
78.31
458.67

Total Current
liabilities
( Except bank
borrowing)
Working
Capital
Self-financing
(25 % of total
current assets)
MPBF
MPBF
breakdown

1124.6
1585.24
677.46
907.78

20% cash credit

181.556

80% WCDL

726.224

219.6715

295.0715

878.686

1180.286

Working capital requirements and Maximum Permissible Bank

Finance for Cipla
Current assets
Inventory(total)

2010-11
1883.16

Trade
Receivables

1497.04

Cash and Bank

83.98

Other
Assets

Current

Short
Term
Loans
and
Advances
Total Current
Assets(except
current
investment)

2011-12

2012-13

1824.5

2343.37

1519.31

1645.22

55.06

105.07

53.98

2.28

773.79

652.79

4226.64

4748.73

685.85

827.09

232.79

242.62

220.64

229.63

1139.28
3087.36

1299.34
3449.39

1056.66

1187.1825

85.33

771.30

4320.81

Current
Liabilities
Trade payables

661.67

Other
current
liabilities

300.40

Short
term
provisions

198.88

Total Current
liabilities
(Except bank
borrowing)

1160.95

Working
Capital

3159.86

Self-financing
(25% of total
current assets)

1080.2025

MPBF
MPBF
breakdown

2079.6575

20% cash credit

415.9315

80% WCDL

1663.726

2030.7

2262.2075

406.14

452.4415

1624.56

1809.766

Conclusion
If any company has a Negative working capital, it is not always bad. Some companies can
generate cash so quickly they actually have a negative working capital. This happens
because customers pay upfront and so rapidly, the business has no problems raising cash. In
these companies, products are delivered and sold to the customer before the company ever
pays for them. The bottom line: A negative working capital is a sign of managerial
efficiency in a business with low inventory and accounts receivable (which means they
operate on an almost strictly cash basis). In any other situation, it is a sign a company may
be facing bankruptcy or serious financial trouble. Under the best circumstances, poor
working capital leads to financial pressure on a company, increased borrowing, and late
payments to creditor - all of which result in a lower credit rating. A lower credit rating
means banks charge a higher interest rate, which can cost a corporation a lot of money over
time.

References

1)
2)

Online Databases
Crisil research database- elibrary NMIMS
Moneycontrol (Financial Statements and various Ratios)

Articles for Review

1)
Ernest W. Walker, Towards A Theory of Working Capital, The
Engineering Economist, Winter 1967, pp. 21- 35.
2)
S.K. Chakraborty, Cash Working Capital Vs. Balance Sheet Working
Capital, The Economic and Political Weekly, March 1974, pp. MII-M22.
3)
S.K. Chakraborty, Use of Operating Cycle Concept for Better
Management of Working Capital, The Economic and Political Weekly, August, 1973,
Vol.8, pp. M69-M76.

Exhibit
Sun Pharma Balance Sheet
Sun Pharma

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

207.12

103.56

103.56

103.56

103.56

207.12

103.56

103.56

103.56

103.56

Reserves

7,200.76

7,685.32

7,774.56

6,576.97

5,614.42

Networth

7,407.88

7,788.88

7,878.12

6,680.53

5,717.98

Sources Of Funds
Total Share Capital
Equity Share
Capital
Share Application
Money
Preference Share
Capital

Secured Loans

8.81

43.13

40.3

50.53

29.49

Unsecured Loans

2,400.20

Total Debt

2,409.01

43.13

40.3

50.53

29.49

Total Liabilities

9,816.89

7,832.01

7,918.42

6,731.06

5,747.47

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

1,947.47

1,720.70

1,478.93

1,235.51

1,159.76

680.3

584.91

501.63

441.12

419.24

1,267.17

1,135.79

977.3

794.39

740.52

480.46

348.04

248.87

195.65

92.15

Application Of Funds
Gross Block
Less: Revaluation
Reserves
Less: Accum.
Depreciation
Net Block
Capital Work in
Progress
Investments

7,015.73

4,317.54

4,437.78

3,601.42

3,951.69

Inventories

918.38

868.76

640.07

618.26

570.14

Sundry Debtors

452.75

737.53

713.48

542.62

553.29

141.48

431.12

1,327.71

1,250.91

26.11

1,512.61

2,037.41

2,681.26

2,411.79

1,149.54

3,561.03

1,407.71

785.99

603.35

383.34

161.16

5,073.64

3,445.12

3,467.25

3,015.14

1,694.04

807.89

674.84

598.67

442.44

388.45

Provisions
Total CL &
Provisions
Net Current
Assets
Miscellaneous
Expenses

3,212.22

739.64

614.11

433.1

342.48

4,020.11

1,414.48

1,212.78

875.54

730.93

1,053.53

2,030.64

2,254.47

2,139.60

963.11

Total Assets

9,816.89

7,832.01

7,918.42

6,731.06

5,747.47

Cash and Bank

Balance
Total Current
Assets
Loans and
Advances
Fixed Deposits
Total CA, Loans &
Advances
Deferred Credit
Current Liabilities

Contingent
Liabilities
Book Value (Rs)

1,816.58

1,103.37

783.65

477.83

184.24

35.77

75.21

76.07

64.51

276.08

Source : Dion Global Solutions Limited

Sun Pharma Income Statement

Sun Pharma

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

2,828.79

2,432.14

4,015.56

3,107.57

1,891.16

46.07

2,828.79

2,432.14

4,015.56

3,107.57

1,845.09

-2,716.22

236.17

42.93

194.13

765.98

Stock Adjustments

14.53

10.53

81.73

-1.99

30.91

Total Income

127.1

2,678.84

4,140.22

3,299.71

2,641.98

1,264.59

1,077.87

1,257.79

993.27

878.46

115.8

93.4

68.76

46.59

47.38

279.63

234.87

316.56

261.09

174.71

Other Manufacturing Expenses

52.9

Selling and Admin Expenses

439.11

1,166.23

523.85

695.56

480.55

31.92

2,826.25

1,929.99

2,338.67

1,781.50

1,624.48

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

17.07

512.68

1,758.62

1,324.08

251.52

-2,699.15

748.85

1,801.55

1,518.21

1,017.50

0.44

-2,699.15

748.85

1,801.55

1,518.21

1,017.06

Sales Turnover
Excise Duty
Net Sales
Other Income

Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost

Miscellaneous Expenses

Preoperative Exp Capitalised

Total Expenses

Operating Profit
PBDIT
Interest
PBDT

Depreciation

101.94

85.82

75.72

64.23

69.47

Other Written Off

Profit Before Tax

-2,801.09

663.03

1,725.83

1,453.98

947.59

1.57

-2,801.09

663.03

1,725.83

1,453.98

949.16

27.43

146.48

28.34

70.18

50.51

Reported Net Profit

-2,828.52

516.55

1,697.49

1,383.80

898.65

Total Value Addition

1,561.66

852.12

1,080.88

788.23

746.02

310.67

517.79

440.12

362.45

284.79

52.8

88

71.4

58.8

47.3

20,711.64

10,355.82

10,355.82

10,355.82

2,071.16

-13.66

4.99

16.39

13.36

43.39

150

500

425

350

275

35.77

75.21

76.07

64.51

276.08

Extra-ordinary items

PBT (Post Extra-ord Items)

Tax

Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)

Earning Per Share (Rs)

Equity Dividend (%)

Book Value (Rs)
Source : Dion Global Solutions Limited

Lupin Balance Sheet

Lupin

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

89.68

89.51

89.33

89.24

88.94

Equity Share Capital

89.68

89.51

89.33

89.24

88.94

Share Application
Money

Preference Share
Capital

Reserves

6,889.36

4,757.20

3,645.08

3,063.42

2,441.61

Networth

6,979.04

4,846.71

3,734.41

3,152.66

2,530.55

50

411.3

580.82

637.46

704

89.4

143.99

411.83

342

202.81

139.4

555.29

992.65

979.46

906.81

7,118.44

5,402.00

4,727.06

4,132.12

3,437.36

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

3,056.96

2,762.91

2,335.41

1,869.09

1,616.52

877.5

749.26

627.93

514.46

425.13

2,179.46

2,013.65

1,707.48

1,354.63

1,191.39

267.05

240.12

357.33

442.09

140.83

Investments

1,163.66

688.04

687.29

680.88

724.07

Inventories

1,372.24

1,330.83

1,123.56

841.11

713.7

Sundry Debtors

2,859.92

1,874.27

1,490.80

1,234.28

916.59

Cash and Bank

Balance

146.28

20.12

19.2

37.46

36.53

4,378.44

3,225.22

2,633.56

2,112.85

1,666.82

810.35

878.7

773.05

621.32

665.79

0.89

5,188.79

4,103.92

3,406.61

2,734.17

2,333.50

1,367.80

1,332.67

1,193.81

880.29

785.62

312.72

311.06

237.84

199.36

166.81

Total CL & Provisions

1,680.52

1,643.73

1,431.65

1,079.65

952.43

Net Current Assets

3,508.27

2,460.19

1,974.96

1,654.52

1,381.07

Sources Of Funds

Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

Application Of Funds
Gross Block
Less: Revaluation
Reserves
Less: Accum.
Depreciation
Net Block
Capital Work in
Progress

Total Current Assets

Loans and Advances
Fixed Deposits
Total CA, Loans &
Advances
Deferred Credit
Current Liabilities
Provisions

Miscellaneous
Expenses

Total Assets
Contingent Liabilities
Book Value (Rs)

7,118.44

5,402.00

4,727.06

4,132.12

3,437.36

538.52

484.51

557.28

235.67

113.7

155.65

108.3

83.61

70.66

284.51

Source : Dion Global Solutions Limited

Lupin Income Statement

Lupin

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

8,939.38

7,122.51

5,384.83

4,494.88

3,723.96

33.87

8,939.38

7,122.51

5,384.83

4,494.88

3,690.09

415.38

23.31

3.49

16.58

-14.12

76.21

182.44

-1.98

9,430.97

7,328.26

5,388.32

4,511.46

3,673.99

3,223.46

2,924.46

2,377.44

1,921.18

1,596.77

Power & Fuel Cost

309.36

299.76

257.13

196.83

141.68

Employee Cost

844.32

713.08

581.22

491.23

376.55

Other Manufacturing
Expenses

115.15

Selling and Admin

Expenses

562.13

1,726.12

1,483.73

1,139.71

927.2

54.72

6,103.26

5,421.03

4,355.50

3,536.44

2,847.00

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials

Miscellaneous Expenses

Preoperative Exp
Capitalised
Total Expenses

2,912.33

1,883.92

1,029.33

958.44

841.11

3,327.71

1,907.23

1,032.82

975.02

826.99

20.99

33.28

28.68

27.57

36.76

3,306.72

1,873.95

1,004.14

947.45

790.23

167.63

150.14

131.96

104.28

81.57

Other Written Off

Profit Before Tax

3,139.09

1,723.81

872.18

843.17

708.66

-1.08

3,139.09

1,723.81

872.18

843.17

707.58

814.87

463.38

200.34

33.7

59.73

Reported Net Profit

2,324.22

1,260.43

804.37

809.98

648.93

Total Value Addition

2,879.80

2,496.57

1,978.06

1,615.26

1,250.23

269.01

179.01

142.92

133.86

120.07

24.78

30.43

23.19

21.75

20.12

4,483.76

4,475.29

4,466.42

4,462.01

889.44

51.84

28.16

18.01

18.15

72.96

300

200

160

150

135

155.65

108.3

83.61

70.66

284.51

Operating Profit
PBDIT
Interest
PBDT
Depreciation

Extra-ordinary items

PBT (Post Extra-ord Items)

Tax

Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)

Earning Per Share (Rs)

Equity Dividend (%)

Book Value (Rs)

Source : Dion Global Solutions Limited

Cipla Balance Sheet

Cipla

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

160.58

160.58

160.58

160.58

160.58

Equity Share Capital

160.58

160.58

160.58

160.58

160.58

Share Application Money

Preference Share Capital

Reserves

9,931.06

8,708.94

7,389.70

6,452.37

5,744.54

Networth

10,091.64

8,869.52

7,550.28

6,612.95

5,905.12

9.49

10

2.95

0.41

Unsecured Loans

877.34

956.32

2.2

437.53

4.66

Total Debt

877.34

965.81

12.2

440.48

5.07

10,968.98

9,835.33

7,562.48

7,053.43

5,910.19

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

5,394.36

4,983.81

4,298.18

3,928.47

2,895.44

8.97

Less: Accum. Depreciation

1,870.17

1,565.52

1,295.52

1,060.82

884.27

Net Block

3,524.19

3,418.29

3,002.66

2,867.65

2,002.20

376.69

350.34

343.45

253.07

684.24

Investments

3,587.13

2,601.82

1,035.15

570.65

265.1

Inventories

2,511.16

2,343.37

1,824.50

1,883.16

1,512.58

Sundry Debtors

1,728.10

1,645.22

1,519.31

1,497.04

1,552.71

46.04

105.07

55.06

83.98

60.32

Sources Of Funds

Secured Loans

Total Liabilities

Application Of Funds
Gross Block
Less: Revaluation
Reserves

Capital Work in Progress

Cash and Bank Balance

Total Current Assets

4,285.30

4,093.66

3,398.87

3,464.18

3,125.61

Loans and Advances

1,150.69

1,029.10

1,213.66

1,292.28

2,357.29

0.52

5,435.99

5,122.76

4,612.53

4,756.46

5,483.42

1,636.96

1,380.91

1,190.78

1,174.52

1,177.11

318.06

276.97

240.53

219.88

1,347.66

Total CL & Provisions

1,955.02

1,657.88

1,431.31

1,394.40

2,524.77

Net Current Assets

3,480.97

3,464.88

3,181.22

3,362.06

2,958.65

10,968.98

9,835.33

7,562.48

7,053.43

5,910.19

1,201.36

3,993.66

1,320.07

1,110.96

423.87

125.69

110.47

94.04

82.36

73.55

Fixed Deposits
Total CA, Loans &
Advances
Deferred Credit
Current Liabilities
Provisions

Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

Source : Dion Global Solutions Limited

Cipla Income Statement

Cipla

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

9,380.29

8,202.42

6,977.50

6,331.09

5,657.85

Income
Sales Turnover
Excise Duty

52.16

9,380.29

8,202.42

6,977.50

6,331.09

5,605.69

Other Income

280.28

229.13

148.3

91.64

125.71

Stock
Adjustments

158.12

290.75

-11.24

138.71

184.09

9,818.69

8,722.30

7,114.56

6,561.44

5,915.49

4,002.79

3,440.15

2,947.97

3,136.29

2,687.54

191.84

211.17

211.32

183.65

92.15

Net Sales

Total Income
Expenditure
Raw Materials
Power & Fuel
Cost

Employee Cost

1,284.75

969.28

728.21

540.33

318.87

Other
Manufacturing
Expenses

259.67

Selling and
Admin Expenses

867.98

2,069.50

1,753.43

1,496.90

1,288.83

182.64

7,548.88

6,374.03

5,384.40

5,149.10

4,408.85

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

1,989.53

2,119.14

1,581.86

1,320.70

1,380.93

2,269.81

2,348.27

1,730.16

1,412.34

1,506.64

Miscellaneous
Expenses
Preoperative Exp
Capitalised
Total Expenses

Operating Profit
PBDIT
Interest

127.86

33.38

26.63

12.92

28.3

2,141.95

2,314.89

1,703.53

1,399.42

1,478.34

323.61

303.03

282.07

248.03

165.25

Other Written Off

Profit Before Tax

1,818.34

2,011.86

1,421.46

1,151.39

1,313.09

11.9

1,818.34

2,011.86

1,421.46

1,151.39

1,324.99

PBDT
Depreciation

Extra-ordinary
items
PBT (Post Extraord Items)
Tax

430

504.75

297.5

191

243.5

Reported Net
Profit

1,388.34

1,507.11

1,123.96

960.39

1,081.49

Total Value
Addition

3,546.09

2,933.88

2,436.43

2,012.81

1,721.31

Preference
Dividend

160.58

160.58

160.58

224.81

160.58

27.29

27.29

26.05

36.72

26.67

8,029.21

8,029.21

8,029.21

8,029.21

8,029.21

17.29

18.77

14

11.96

13.47

Equity Dividend
(%)

100

100

100

140

100

Book Value (Rs)

125.69

110.47

94.04

82.36

73.55

Equity Dividend
Corporate
Dividend Tax
Per share data (annualised)
Shares in issue
(lakhs)
Earning Per
Share (Rs)