Description
Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project.
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 1
A Project Report
On
Of
Financial Analysis
Executive summary
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Operating expenses may be defined as those that pertain to the production process, or, more generally, the process of carrying out the business. Such processes include all those pertaining to purchases, human resources, production and marketing and selling. Conventionally, expenses incurred on rising or using finances are not considered as operational expenses. There are a few more - amortization, write-offs, prior-period expenses, etc. Often, the distinction between operating and non-operating expenses is clear. But at times there is some ambiguity regarding the nature of the expense. As a result, the basic framework of data capture at CMIE avoids the classification of expense heads as operational and non-operational. However, disclosure practices of companies often compel us to use the term "operational expenses". Expenses that can be posted without the use of such a term are posted appropriately into CMIE's detailed classification of expense items and, the remaining "operational expenses” are clubbed into one of the two data-fields: "Other operational expenses of industrial enterprises" or "Other operational expenses of non-financial services enterprises". This data-field includes all operating expenses of an industrial enterprise that are not already covered in any of the other data field. These are likely to be industry-specific operational expenses. Examples of such expenses can be preservation expenses, laboratory expenses, testing expenses etc.
Index Sr.No. 1 Chapter :1 Introduction of Company Content Page no. 5
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2
Chapter-2: Comparative Balance sheet and Analysis of Balance Sheet
10
3
Chapter-3: Comparative Profit and Loss Account and Analysis of Profit & Loss Statement
15
4
Chapter-4: Common Size Statements
19
5
Chapter 5: Trend Analysis (Index Analysis)
23
6
Chapter 6: Analysis of Cash flow Statement
26
7
Chapter 7: Ratio Analysis
27
9 Chapter 9: Contemporary Issues in Accounting of the company
36
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•
CHAPTER: 1 (Company profile)
1.1 Introduction of Company
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau word from the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir Singh and Gurbax Singh. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw a significant transformation in its business and scale. His sons Malvinder Mohan Singh and Shivinder Mohan Singh sold the company to the Japanese company Daiichi Sankyo in June 2008. Ranbaxy was established in 1961 and went public in the year 1973. It has global sales of US $1340 million for the year ended on 31st December, 2006. It has the largest market in USA (sales appx. US $380 million); then come Europe and BRICS (Brazil, Russia, India, China, South Africa).
1.2Company Details: Type Founded Public 1961
Headquarters- Gurgaon, Haryana, India Employees Website
•
-
1100 in R&D www.ranbaxy.com
For enquiries contact: M. Giridhar Venugopal Director – Global Business Development & Acquisitions Ranbaxy Laboratories Limited
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Plot No. 90, Sector 32, Gurgaon – 122001 (Haryana), India E-mail: [email protected] • Registered Office A-41, Industrial Area Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali - 160 071 (Punjab), INDIA
1.3Products
Using the finest R&D and Manufacturing facilities, Ranbaxy Laboratories Limited manufactures and markets generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active Pharmaceuticals (API) and intermediates. The Company remains focused on ascending the value chain in the marketing of pharmaceutical substances and are determined to bring in increased revenues from dosage forms sales. Ranbaxy's diverse product basket of over 5,000 SKUs available in over 125 countries worldwide encompasses a wide therapeutic mix covering a majority of the chronic and acute segments. Healthcare trends project that the chronic treatment segments will outpace the acute treatment segments, primarily driven by a growing aging population and dominance of lifestyle diseases. Their robust performance in Cardiovasculars, Central Nervous System, Respiratory, Dermatology, Orthopedics, Nutritionals and Urology segments, clearly indicates that the Company has strengthened its presence in the fast-growing chronic and lifestyle disease segments. • Top 10 Molecules (2012) • Valacyclovir • Simvastatin • Donepezil • Atorvastatin & Combinations • Co-amoxyclav & Combinations • Ciprofloxacin & Combinations • Ketorolac Tromethamine • Imipenem+Cilastatin • Ginseng+Vitamins • Loratadine & Combinations
•
1.4 Company History: Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and one of the world's top 100 pharmaceutical companies. Long a specialist in the preparation of generic drugs, Ranbaxy is also one of the world's top 10 in that pharmaceutical category as well. Yet, with India's
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agreement to apply international patent law at the beginning of 2005, Ranbaxy has begun converting itself into a full-fledged research-based pharmaceutical company. A major part of this effort has been the establishment of the company's own research and development center, which has enabled the company to begin to enter the new chemical entities (NCE) and novel drug delivery systems (NDDS) markets. In the mid-2000s, the company had a number of NCEs in progress, and had already launched its first NDDS product, a single daily dosage formulation of ciprofloxacin. Ranbaxy is a truly global operation, producing its pharmaceutical preparations in manufacturing facilities in seven countries, supported by sales and marketing subsidiaries in 44 countries, reaching more than 100 countries throughout the world. The United States, which alone accounts for nearly half of all pharmaceutical sales in the world, is the company's largest international market, representing more than 40 percent of group sales. In Europe, the company's purchase of RPG (Aventis) S.A. makes it the largest generics producer in that market. The company is also a leading generics producer in the United Kingdom and Germany and elsewhere in Europe. European sales added 16 percent to the company's sales in 2004. Ranbaxy's other major markets include Brazil, Russia, and China, as well as India, which together added 26 percent to the group's sales. Ranbaxy posted revenues of $1.18 billion in 2004. The company, which remains controlled and led by the founding Singh family, is listed on the National Stock Exchange of India in Mumbai.
1.5 Board of Directors At the helm of the entire operations is the experience and able direction of the people who make it all happen. Ranbaxy acknowledges their inspiring stewardship and indefatigable work.
•
Dr. Tsutomu Une Chairman Non Executive & Non Independent Director
Mr. Arun Sawhney CEO & Managing Director
Mr. Takashi Shoda Non Executive & Non Independent Director
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Dr. Kazunori Hirokawa Non Executive & Non Independent Director
Dr. Anthony H. Wild Independent Director
Mr. Rajesh V. Shah Independent Director
Mr. Akihiro Watanabe Independent Director
Mr. Percy K. Shroff Independent Director
+
CHAPTER: 2 (Balance sheet 2008-2012) Balance Sheet of Ranbaxy Laboratories of 20072011
------------------ in Rs. Cr. ------------------Particular s Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
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Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluatio n Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities 211.00 210.52 210.21 210.19 186.54
211.00
210.52
210.21
210.19
186.54
0.67
6.60
175.85
175.66
1.18
0.00 1,713.16 0.00 1,924.83 229.59 4,103.94 4,333.53 6,258.36
0.00 4,915.28 0.00 5,132.40 195.39 4,065.33 4,260.72 9,393.12
0.00 3,748.54 0.00 4,134.60 175.83 3,172.55 3,348.38 7,482.98
0.00 3,330.92 0.00 3,716.77 162.07 3,563.30 3,725.37 7,442.14
0.00 2,350.68 0.00 2,538.40 365.07 3,137.96 3,503.03 6,041.43
Application Of Funds Gross Block Less: Accum. Depreciatio n Net Block 3,094.07 2,857.63 2,620.92 2,386.75 2,261.48
1,222.07
1,145.52
1,027.52
930.07
791.96
1,872.00
1,712.11
1,593.40
1,456.68
1,469.52
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Capital Work in Progress Investme nts Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellane
222.62
330.18
414.92
428.77
327.42
3,410.79 1,655.23 3,689.95
3,804.44 1,489.91 1,292.63
3,833.69 1,230.48 1,534.65
3,618.03 1,198.52 1,024.54
3,237.55 976.07 882.91
66.90
22.44
25.56
49.86
69.38
5,412.08
2,804.98
2,790.69
2,272.92
1,928.36
2,382.72 1,871.14
1,470.45 2,689.85
1,967.65 728.56
2,351.98 1,885.08
882.99 111.07
9,665.94
6,965.28
5,486.90
6,509.98
2,922.42
0.00 5,157.68 3,755.31 8,912.99
0.00 2,491.08 927.82 3,418.90
0.00 3,082.89 763.03 3,845.92
0.00 3,840.11 731.20 4,571.31
0.00 1,177.35 738.14 1,915.49
752.95 0.00
3,546.38 0.00
1,640.98 0.00
1,938.67 0.00
1,006.93 0.00
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ous Expenses Total Assets 6,258.36 9,393.11 7,482.99 7,442.15 6,041.42
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Comparative Balance sheet of Ranbaxy Laboratories of 2007-2011
------------------ in Rs. Cr. -------------------
Particular s
Dec '1110
Dec '1009
Dec '0908
Dec '0807
% '1110
% '1009
% '0908
% '0807
Sources Of Funds Total Share Capital Equity Share Capital Share 0.48 0.31 0.02 23.65 0.228 007 0.228 007 0.147 472 0.147 472 0.009 515 0.009 515 0.108 12.67 825 12.67 825 14786
0.48 -
0.31 -
0.02 0.19
23.65 174.4
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Application Money Preference Share Capital Reserves Revaluation Reserves
5.93
169.2 5 -
8
89.84 85 65.14 62 62.49 65 17.50 345 0.949 738 1.708 866
96.24 68 -
163
.44
-
-
-
-
1166. 320 74 2.12 -
417.6 2 417.8 3
980.2 4 1178. 37
31.12 518 24.13 293 11.12 438 28.14 077 27.24 721
12.53 768 11.24 175 8.490 159 10.96 6 10.11 95
41.70 027 46.42 176 55.60 58 13.55 467 6.347 077
Net worth 320 997.8 7.57 Secured Loans Unsecured Loans 34.2 19.56
13.76 390.7 5 376.9 9 40.8 4
-203
38.6 892.7 1 8 72.8 912.3 1 4 313 4.7 6
425.3 4 222.3 4
Total Debt
Total Liabilities
1910 .14
1400 .71
25.52 0.548 23.18 33.37 646 767 507 29
Application Of Funds Gross Block Less: Accum. Depreciatio n Net Block 236. 236.7 44 1 76.5 118.0 5 0 159. 118.7 234.1 7 125.2 7 138.1 1 8.27 9.03 9.81 5.54
97.45
6.68
11.48
10.48
17.44
136.7
9.34
7.45
9.39
-0.87
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89 Capital Work in Progress
1
2 13.85 215.6 6 31.96 510.1 1 24.30 517.7 7 384.3 3 1,156 .52 1,023 .08 757.2 2 31.83
12.84 101.3 -32.58 -20.42 5 380.4 -10.35 8 222.4 5 141.6 3 19.52 344.5 6 1,468 .99 11.10 185.4 6 198.1 3 -3.23 30.95
107. 84.74 56
Investmen 393. ts 29.25 65 Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions 165. 259.4 32 3 2,39 242.0 7.32 2 44.4 6 -3.12
-0.76
5.96
11.75
21.08
2.67
22.79
-15.77
49.79
16.04
-12.21 -48.74 -28.13
2,60 14.29 7.10 912. 497.2 27 0 1,961 818. .29 71 2,70 1,478 0.66 .38 -
92.95
0.51
22.78
17.87
62.04
-25.27 -16.34
166.3 7 1,597. 20 122.7 6 226.1 7 -0.94
1,774 -30.44 .01 3,587 .56 2,662 .76 -6.94
269.2 0
-61.35
38.77
26.94
-15.72
107.0 5 304.7
-
-
2,66 591.8 6.60 1 2,82 164.7
-19.20 -19.72 21.60 4.35
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7.49 Total CL & Provisions Net Current Assets Miscellaneo us Expenses Total Assets
9 725.3 9 297.6 9 2,655 .82
5 160.7 0 -11.10 -15.87 138.6 5
5,49 427.0 4.09 2 1,905 2,79 .40 3.43 -
931.7 -78.77 4
116.1 1
-15.36
92.53
-
-
-
-
-s
1,910 3,13 .12 4.75
40.84
1,400 -33.37 .73
25.53
0.55
23.19
Interpretation
? Total of the shareholder funds and liabilities increase continuously in 2009 to
2011 because of growth of the company.
? Total liabilities have been increasing till 2011. ?
Current liabilities have also been increased in 2011. Purchases investments and assets every year.
? The total assets also increase year which shows that company
? Its shows company’s good profitability and financial soundness. ? The Net Block of a company was continuously increased for but in 2010 it was
decreased.
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CHAPTER: 3 (Profit and Loss account 2007-11)
Profit and Loss Account of Ranbaxy lab.
Particulars Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income 7,709.17 22.58 7,686.59 3,990.57 135.72 3,831.7 4 5,687.33 40.96 5,646.37 562.45 161.43 6,370.25 4,797.49 15.90 4,781.59 485.66 33.96 5,301.21 4,676.21 24.17 4,652.04 -1,587.64 115.59 3,179.99 4,344.39 51.37 4,293.02 551.13 40.66 4,884.81 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
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Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturin g Expenses Selling and Admin Expenses Miscellaneou s Expenses Preoperative Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax 2,523.08 194.98 845.24 2,181.22 132.75 608.28 1,916.58 109.57 582.50 2,049.30 108.83 472.65 1,861.17 90.35 420.04
112.69
96.68
89.94
94.65
82.60
1,579.37
1,332.70
1,306.25
1,402.77
1,341.03
1,283.54
185.14
158.07
383.26
123.90
0.00 6,538.9 0 1,283.4 1 2,707.16 69.44 2,776.60 274.08 7.83 3,058.51
0.00
0.00
0.00
0.00
4,536.77 1,271.03 1,833.48 54.19 1,779.29 228.35 0.00 1,550.94
4,162.91 652.64 1,138.30 39.47 1,098.83 148.20 0.00 950.63
4,511.46 256.17 -1,331.47 145.83 -1,477.30 154.47 0.00 -1,631.77
3,919.09 414.59 965.72 93.43 872.29 118.73 0.00 753.56
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Extraordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%)
15.44
21.88
111.42
17.76
35.46
3,043.07 6.69 3,052.0 5 4,015.82 0.00 0.07 -0.32 4,220.00
1,572.82 415.48 1,148.73
1,062.05 488.86
-1,614.01 -574.24
789.02 156.69 617.72
571.98 -1,044.80
2,355.55 0.00 84.21 13.99 4,210.41
2,246.33 0.00 0.00 0.00 4,204.17
2,462.16 0.00 0.00 0.00 4,203.70
2,057.93 0.00 317.15 53.90 3,730.71
-72.32
27.28
13.61
-24.85
16.56
0.03
40.00
0.00
0.00
170.00
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 17
•
Comparative Profit and loss account of Ranbaxy ltd. 20072011
------------------ in Rs. Cr. -------------------
Particular s
Dec '1110
Dec '1009
Dec '0908
Dec '0807
% '1110
% '1009
% '0908
% '0807
Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustment s Total Income
2,021. 84 -18.38 2,040. 22 4,553. 02 -25.71 2,538. 889.84 25.06 864.78 121.28 -8.27 129.55 2,073. 30 331.82 -27.20 359.02 2,138. 77 74.93 1,704. 35.55 -44.87 36.13 809.50 18.55 157.61 18.09 2.59 -34.22 2.78 130.59 7.64 -52.95 8.36 388.07
76.79
15.81
127.47 1,069. 04
-81.63 2,121. 22
-15.93 -39.85
375.35 20.17
-70.62 66.71
184.28 -34.90
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51
82
Expenditu re Raw Materials Power & Fuel Cost Employee Cost Other Manufacturi ng Expenses Selling and Admin Expenses Miscellaneo us Expenses Preoperativ e Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT
341.86 264.64 132.72 0.74 188.13 15.67 13.81 -6.48 10.11
62.23
23.18
18.48
46.88
21.16
0.68
20.45
236.96
25.78
109.85
52.61
38.96
4.43
23.24
12.52
16.01
6.74
-4.71
12.05
16.56
7.49
-4.98
14.59
246.67
26.45
-96.52
61.74
18.51
2.02
-6.88
4.60
1,098. 40
27.07
225.19
259.36
593.28
17.13
-58.76
209.33
0.00
0.00
0.00
0.00
-
-
-
-
2,002. 13 12.38 4,540. 64 15.25 4,555. 89
373.86
348.55 396.47 2,469. 77 106.36 2,576. 13
592.37 158.42 2,297. 19 52.40 2,349. 59
44.13
8.98
-7.73
15.11
618.39
0.97 247.65 28.14 256.05
94.75
154.77 185.49 -72.93 174.38
-38.21 237.87 56.08 269.36
695.18
61.07
14.72
37.29
680.46
61.93
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 19
Depreciatio n Other Written Off Profit Before Tax Extraordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Shares in issue (lakhs) Earnings Per Share (Rs) Equity
45.73
80.15
-6.27
35.74
20.03
54.08
-4.06
30.10
7.83 4,609. 45 -6.44
0.00
0.00 2,582. 40
0.00 2,385. 33 -17.70
297.20
-
158.26
316.54
600.31
63.15
-89.54
93.66
-29.43
-80.36
527.36
-49.92
4,615. 89 408.79 4,200. 78 1,660. 27 0.00
510.77
2,676. 06 1,063. 10 1,616. 78 215.83 0.00
2,403. 03 730.93 1,662. 52 404.23
293.48 -98.39 365.69 70.48
48.09
165.80 185.13 154.75 -8.77
304.56 466.48 269.14 19.64
-73.38
-15.01
576.75
100.83
109.22
4.86
0.00
0.00 317.15
-
-
-
100.00 100.00
-84.14
84.21
0.00
-99.92
-
-
-14.31
13.99
0.00
-53.90
102.29
-
--
9.59
6.24
0.47
472.99
0.23
0.15
0.01
12.68
-99.60 -39.97
13.67 40.00
38.46 0.00
-41.41 -
365.10 -99.93
100.44 -
154.77 -
250.06 -
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 20
Dividend (%)
170.00
100.00
Interpretation
? Total income is more than total expenditure in every year. ? Net profit has been increased in 2011 around 620%. ? In 2011 the earning per share shows in negative change. It represent losses, non beneficial to the
company.
CHAPTER:4 Common size Statement of Ranbaxy ltd. Balance Sheet of Ranbaxy Laboratories of 20072011
------------------ in Rs. Cr. ------------------Particulars Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
Sources Of Funds Total Share Capital Equity Share Capital Share Application 3.37149 2.241215 2.809175 2.824322 3.08768
3.37149 0.010706
2.241215 0.070264
2.809175 2.3499996
2.824322 2.360343
3.08768 0.019532
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 21
Money Preference Share Capital Reserves Revaluatio n Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities 0 27.37394 0 30.75614 3.668533 65.57533 69.24386 100 0 52.32851 0 54.63999 2.08014 43.27987 45.36001 100 0 50.094214 0 55.253388 2.3497323 42.396879 44.746612 100 0 44.75756 0 49.94222 2.177734 47.88005 50.05778 100 0 38.90933 0 42.01654 6.042775 51.94068 57.98346 100
Application Of Funds Gross Block Less: Accum. Depreciatio n Net Block Capital Work in Progress Investme nts Inventories Sundry Debtors 49.43899 30.42262 35.025037 32.07071 37.43292
19.527
12.19532
13.73141
12.49733
13.10884
29.91199 3.557162
18.2273 3.51513
21.293627 5.5448424
19.57338 5.761373
24.32408 5.419587
54.49974 26.4483 58.96033
40.50245 15.86173 13.76147
51.232061 16.443694 20.508513
48.61539 16.10449 13.76672
53.58922 16.1563 14.61428
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 22
Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellane ous Expenses Total Assets
1.06897
0.238899
0.3415747
0.669968
1.148406
86.47761
29.8621
37.293782
30.54117
31.91899
38.07259 29.89825
15.65456 28.63642
26.29497 9.7362151
31.6035 25.32978
14.6156 1.838475
154.4484
74.15308
73.324968
87.47445
48.37306
0 82.41264 60.0047 142.4173
0 26.52029 9.877666 36.39796
0 41.198639 10.19686 51.395498
0 51.59947 9.825118 61.42459
0 19.48797 12.21799 31.70596
12.03111
37.75512
21.929469
26.04986
16.66711
0
0
0
0
0
100
100
100
100
100
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 23
•
Profit and loss account (common size statement)
Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
Particulars Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturin
100.00 0.29 99.71 -51.76 1.76 49.70
100.00 0.72 99.28 9.89 2.84 112.01
100.00 0.33 99.67 10.12 0.71 110.50
100.00 0.52 99.48 -33.95 2.47 68.00
100 1.182444 98.81756 12.68602 0.93592 112.4395
32.73 2.53 10.96 1.46
38.35 2.33 10.70 1.70
39.95 2.28 12.14 1.87
43.82 2.33 10.11 2.02
42.84077 2.079694 9.668561 1.901303
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 24
g Expenses Selling and Admin Expenses Miscellaneou s Expenses Preoperative Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extraordinary items PBT (Post Extra-rod Items) Tax Reported Net Profit 20.49 23.43 27.23 30.00 30.86809
16.65
3.26
3.29
8.20
2.851954
0.00
0.00
0.00
0.00
0
84.82 16.65 -35.12 0.90 -36.02 3.56 0.10 -39.67
79.77 22.35 32.24 0.95 31.29 4.02 0.00 27.27
86.77 13.60 23.73 0.82 22.90 3.09 0.00 19.82
96.48 5.48 -28.47 3.12 -31.59 3.30 0.00 -34.90
90.21036 9.543112 22.22913 2.15059 20.07854 2.73295 0 17.34559
0.20
0.38
2.32
0.38
0.816225
-39.47 0.09 -39.59
27.65 7.31 20.20
22.14 10.19 11.92
-34.52 -12.28 -22.34
18.16181 3.60672 14.2188
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 25
Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Shares in issue (laths) Earnings Per Share (Rs) Equity Dividend (%)
52.09 0.00 0.00 0.00 54.74
41.42 0.00 1.48 0.25 74.03
46.82 0.00 0.00 0.00 87.63
52.65 0.00 0.00 0.00 89.90
47.36983 0 7.300219 1.240681 85.8742
-0.94
0.48
0.28
-0.53
0.381181
0.00
0.70
0.00
0.00
3.913093
Analysis of Common Size Statement
? The contribution of net sales in total income was nearly same in all the year
It was near about 98 to 100%.
? The contribution of total expenditure was continuous decrease year by year,
but in 2011 it Increased.
? So that from the above common size statement we can easily find out that Company is at a growing stage.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 26
CHAPTER 5 (Trend analysis) Balance sheet of Ranbaxy ltd.
particulars Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories 2007 2008 112.67 82 112.67 82 14886. 44 141.70 03 146.42 18 44.394 23 113.55 47 106.34 71 123.18 51 105.53 93 117.43 9 99.12 625 130.95 41 111.75 21 122.79 2009 112.68 9 112.68 9 14902. 54 159.46 62 162.88 21 48.163 37 101.10 23 95.585 25 123.86 11 115.89 4 129.74 39 108.4 3 126.72 41 118.41 33 126.06 2010 112.85 52 112.85 52 559.32 2 209.10 03 202.19 04 53.521 24 129.55 33 121.62 96 155.47 84 126.36 11 144.64 37 116.5 081 100.84 3 117.50 98 152.64 2011 113.11 25 113.11 25 56.779 66 72.879 34 75.828 47 62.889 31 130.78 37 123.70 8 103.59 07 136.81 62 154.30 96 127.3 885 67.992 18 105.35 1 169.58
100 100 100
100
100 100 100 100 100
100 100 100 100 100 100
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 27
Sundry Debtors 100 Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Differed Credit Current Liabilities Provisions 100 Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 100 100 100 100 100 100 100 100 100 100 100
04 116.04 13 71.865 09 117.86 8 266.36 54 1697.2 222.75 99 326.16 55 99.059 8 238.64 96 192.53 27
47 173.81 73 36.840 59 144.71 83 222.83 94 655.94 67 187.75 19 261.84 99 103.37 2 200.78 162.96 86
38 146.40 56 32.343 61 145.45 94 166.53 08 2421.7 61 238.33 95 211.58 36 125.69 7 178.48 7 352.19 73
11 417.93 05 96.425 48 280.65 71 269.84 68 1684.6 49 330.75 12 438.07 53 508.75 31 465.31 12 74.776 8
123.1 854 125.79 6 123.86 41
123.8 614 129.87 56 138.45 02
155.4 785 137.37 81 179.00 31
103.5 909 148.01 67.048 96
Interpretation
? Net worth was rapidly increasing from last 3 years but it has decreased in 2011. ? Net block of the balance sheet has been increasing from 2008 to 2011 rapidly. ? Total assests was decreased in 2011.
Profit and loss account (Trend analysis)
Income Sales Turnover Excise Duty Net Sales 2007 100 100 100 2008 107.63 79 47.050 81 108.36 29 2009 110.429 5 30.9519 2 111.380 6 2010 130.912 79.7352 5 131.524 4 2011 177.451 1 43.9556 2 179.048 5
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 28
Other Income Stock Adjustments Total Income Expenditur e Raw Materials Power & Fuel Cost Employee Cost Other Manufacturi ng Expenses Selling and Admin Expenses Miscellaneo us Expenses Preoperative Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT
100 100 100
288.07 284.28 43 65.09 956 110.10 82 120.45 38 112.52 5 114.58 84 104.60 39 309.33 01
88.1207 7 83.5218 9 108.52 44 102.977 2 121.272 8 138.677 3 108.886 2 97.4064 7 127.578 7
102.054 397.024 1 130.40 94 117.196 2 146.928 6 144.814 8 117.046 99.3788 4 149.427
724.071 333.792 4 78.441 95 135.564 2 215.805 2 201.228 5 136.428 6 117.772 9 1035.94 8
100 100 100 100 100 100
100
115.1 15 61.788 76 137.87 3 156.08 48 169.35 9 130.10 19
106.22 13 157.418 2 117.870 6 42.2455 3 125.970 7 124.821
115.76 08 306.575 2 189.856 3 58.0006 4 203.979 2 192.327 1
166.84 74 309.56 13 280.32 6 74.323 02 318.31 2 230.84 31
100 100 100 100
Depreciatio n Other Written Off Profit Before Tax Extraordinary items PBT (Post
100
100 100 100
216.54 1 50.084 6 -
126.151 9 314.213 2 134.603
205.815 1 61.7033 3 199.338
405.87 5 43.542 02 -
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 29
Extra-ord Items) Tax 100 Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualize d) Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs) 100 100
204.55 9 366.48 2 169.13 8 119.64 26
7 311.991 8 92.5953 5 109.154 8
4 265.160 5 185.962 9
385.67 7 4.2695 77
494.08 3 114.462 195.1 1 388 0.0220 72 0.5936 9
100 100
0 0
0 0
26.5521 25.9554 7
100 100 100 100
112.67 83 -150.06 0 123.86 41
112.690 9 82.1859 9 0 138.450 2
112.858 1 164.734 3 23.5294 1 179.003 1
113.11 52 436.71 5 0.0176 47 67.048 96
Interpretation
? Total income of the company is decreased in 2011 as compared to last four years. ? Expenditure is increased in 2011, which is loss for a company. ? Earnings per share were increasing till 2010, but it went to negative in 2011.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 30
CHAPTER 6: (Cashflow Statement)
Cash Flow of Ranbaxy Laboratories Particulars. Dec '11 Dec '10 Dec '09 1061. 92 665.43 86.12 in Rs. Cr. Dec '08 Dec '07 1619.0 8 -599.22
Net Profit Before Tax
1565. 3048.6 25 7 138.14 1094.7 3 1268.9 8 1168. 89 2067. 80 991.4 8
774.41
Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents
685.77
-462.91
-708.18
214.14 793.4 6 862.39 68.93
2817.20
132.19
-35.13 92.57 161.83 126.70 69.26 161.8 3
1755.0 7 172.14 1927.21
109.78 62.36 172.14
Interpretation:
? It shows the cash inflow and outflow of the company. ? The highest cash equivalents in the year 2008 in last five years. ? There is a major difference between the financing activities of the year
2007 & 2008 because of company issue shares more than last year
? Cash generated from operating activities is also highest in the 2010 as compare
to the last five years. It may be because of high collection of
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 31
debtors or sales of goods and services.
? It shows from the last five year analysis that cash flow is in increasing and decreasing mood.
Chapter 6 (Ratio analysis)
6.1- CLASSIFICATION OF RATIO
As per requirement of various users the ratio may be classified in following groups.
•
Profitability Ratio:Gross profit ratio. Net profit ratio 3. Return on capital employs ratio 4. Return on share holders fund 5. Return on equity share holders fund 6. Operating ratio 7. Expenses ratio 8. Earnings per share 9. Dividend per share 10. Price Earnings ratio
1. 2.
•
Liquidity ratio:1. Current ratio 2. Liquid ratio
•
Leverage ratio:1. Debt equity ratio 2. Proprietary ratio 3. Capital gearing ratio
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 32 4. Long term fund to fixed assets •
Activity ratio:1. Sales turnover ratio 2. Total assets turnover ratio 3. Debtor ratio 4. Creditor ratio 5. Book value per share 6. Working capital turnover ratio
•
Coverage ratio:1. Debt service coverage ratio 2. Interest coverage ratio
•
Profitability ratio
Sales
1. Gross profit ratio.= Gross profit *100
Year Gross profit Sales Profit margin%
2007
2008
2009
2010
2011
3,094.07 7,709.17
40.13493
2,857.63 5,687.33
50.24555
2,620.92 4,797.49
54.63107
2,386.75 4,676.21
51.04027
2,261.48 4,344.39
52.05518
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 33
Interpretation: Profit is increased in 2009 because of more production. It is in 2007 is very less as compare to other.
2. Net profit ratio
= Net profit ×100 Sales 2008 1,712.11 5,687.33 30.1039 2009 1,593.40 4,797.49 33.2132 2010 1,456.68 4,676.21 31.1509 2011 1,469.52 4,344.39 33.8257
Year Net profit Sales Profit margin%
2007 1,872.00 7,709.17 24.2828
Interpretation: Net profit is increased in the 2011 by 33.83% while it is less in the 2007 by 24.28%. It because of increasing in more selling of products.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 34
3. Operating ratio = Operating exps ×100 Sales
Years Operating exps Sales Operating ratio %
2007 6,538.90 7,709.17 84.82
2008 4,536.77 5,687.33 79.77
2009 4,162.91 4,797.49 86.77
2010 4,511.46 4,676.21 96.48
2011s 3,919.09 4,344.39 90.21
Interpretation: In the ratio exps is 96.48% in the 2010 it decrease the profit of the company.
4. Earnings per share = Earning per share *100 Share holders fund
Years Earnings per share Share
2007
2008
2009
2010
2011
-72.32 1,924.83
27.28 5,132.40
13.61 4,134.60
-24.85 3,716.77
16.56 2,538.40
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 35
holders fund E.P.S ratio -3.76 0.53 0.329 -0.67 0.65
5. Return on capital employs Ratio =
E.B.I.T ×100 Net worth
2007 E.B.I.T Net worth Return on capital employs ratio
2008
2009
2010
2011
-3,058.51 1,924.83
158.90
1,550.94 5,132.40
30.22
950.63 4,134.60
22.99
-1,631.77 3,716.77
43.90
753.56 2,538.40
29.69
6. Dividend per share = equity dividend ×100 Pref, share
Years equity dividend Pref, share Dividend ratio
2007
2008
2009
2010
2011
0.07 211.00
0.033
84.21 210.52
40
0.00 210.21
0
0.00 210.19
0
317.15 186.54
170.017s
•
Liquidity ratio:1. Current ratio = Current Assets Current liabilities
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 36
Years Current assests Current liabilities Ratio
2007 5,412.08
2008 2,804.98
2009 2,790.69
2010 2,272.92
2011 1,928.36
5,157.68
1.05
2,491.08
1.13
3,082.89
0.90
3,840.11
0.59
1,177.35
1.64
Interpretation: ration is increased by 1.05 in the 2007 while it is 1.64 in last year so it is good for company
2. Liquid ratio = Current assests –(stock-prepared exps).
Current liabilities. Years
Current assests – (stockprepared exps).
2007
2008
2009
2010
2011
5,276.36
2,643.55
2,756.73
2,157.33
1,887.70
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 37
Current liabilities.
5,157.68 1.023
2,491.08 1.06
3,082.89 0.89
3,840.11 0.56
1,177.35 1.60
Ratio
Interpretation: In the year 2011 it is 1.6 so reduces the liabilities.
•
Leverage ratio:-
1. Debt equity ratio = Long term debt Share holders fund Year Long term debt Share holders fund 2007 2008 2009 2010 2011
4,333.53
4,260.72
3,348.38
3,725.37
3,503.03
1,924.83
5,132.40
4,134.60
3,716.77
2,538.40
Ratio
2.25
0.83
0.81
1.00
1.38
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 38
Interpretation: In the year 2007 it is 2.25 while it is1.38 in the 2011.
2. Proprietary ratio= Share holders fund Total assets Years Share holders fund Total assets 2007 2008 2009 2010 2011
1,924.83
5,132.40
4,134.60
3,716.77
2,538. 40 6,041. 42
0.42
6,258.36
0.31
9,393.11
0.55
7,482.99
0.55
7,442.15
0.50
Ratio
Interpretation: In the 2008 & 2009 it is 0.55 while it is in the 2007 by 0.31.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 39
ACCOUNTIG POLICES AND NOTES
• •
Significant accounting polices:Schedule ‘N’:a. Basis preparation of financial statement:-
The financial statement are prepared under the historical cost conventional accept for certain fixed assets which are revalued in accordance with the generally accepted accounting principles in India. And the provisions of the companies act 1956.
b. Use of estimates :-
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expense during the accounting period.
c. Own fixes assts:-
Fixed assets are stated at cost net of value added tax. And includes amounts added on revaluations less accumulated depreciation and impairment loss if any all cost including financial cost in commencement of commercial product net charges on foreign exchange contract arising from exchange rate variations attribute table to the fixed assets are capitalized.
d. Leased assts:? Operating leases rentals are expensed with reference to lease terms and other considerations. ?
I. finance leases prior to 1st April, 2001: rentals are expensed with reference to lease terms and other consideration.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 40
II. Financial leases on or after 1st April. 2001: the lower of the value of the assets and present value of the minimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to profit and loss account.
e. Intangible assets:-
Intangible assets are stated at cost of acquisition less accumulated amortiosation.
f.
Depreciation
epreciation on fixes assets is provided to the extent of depreciable amount on written down value method at rates and in the manner prescribed in the company’s act 1956. Depreciation is provided on straight line method over their useful life. 100% depreciation is provided in the year of additions, on additions forming an integral part of existing plans including incremental cost arising on account of translation of foreign currency liabilities for accusation of fixed assets. Depreciation is provided as aforesaid over the residual life of the assets as certifies by values on assets acquired under fiancé lease from 1st April 2001. Depreciation is provided over the lease term.
g. Foreign currency transactions:? Transactions denominated in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction.
? Monitory items denominated in foreign currency at year and are restated at year end
rates in case of items which are covered by forward exchange contracts.
? Nonmonetary currency items are carried at cost.
h. Inventories:-
Items of inventories are measured at lower of the cost and net realizable value after providing for obsolescence if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 41 i.
Employee benefits:? Short term employee benefits are recognize as an expense at the undiscounted
amount in pal account of the year in which the rendered services is rendered.
? In respect of employees stock options the excess of fair price on the date of grant
over the exercise price is recognized as differed compensation cost amortized over the vesting period.
j.
Provision for current differed tax
rovision for tax is made after taking in to consideration benefits admissible under the provisions of the income tax act 1961. Differed tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws that are in acted as on the balacesheet date.
k. Provisions contingent liabilities and assts:-
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation is a result of past events. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized not disclosed.
Conclusion
•
The RANBAXY Project has documented substantial differences in the treatment of student and faculty in the College of Medicine. Current objectives are to 1) continue with analysis of the data collected, particularly the ethnographic interviews with faculty and department chairs, and
•
•
2) Continue to meet with faculty and administration to identify additional strategies for solving the problems identified. The ultimate goal of the project is to achieve parity for student and faculty in an environment of academic excellence.
•
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 42
Bibliography (References):
? ? ?
www.google.comhttp://www.moneycontrol.com/financials/ranbaxylaboratories/balance-sheet/RL#RL www.ranbaxy.com International Directory of Company Histories, Vol. 70. St. James Press, 2005.http://www.fundinguniverse.com/company-histories/ranbaxy-laboratories-ltd-history/
? •
doc_507609407.docx
Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project.
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 1
A Project Report
On
Of
Financial Analysis
Executive summary
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 2
Operating expenses may be defined as those that pertain to the production process, or, more generally, the process of carrying out the business. Such processes include all those pertaining to purchases, human resources, production and marketing and selling. Conventionally, expenses incurred on rising or using finances are not considered as operational expenses. There are a few more - amortization, write-offs, prior-period expenses, etc. Often, the distinction between operating and non-operating expenses is clear. But at times there is some ambiguity regarding the nature of the expense. As a result, the basic framework of data capture at CMIE avoids the classification of expense heads as operational and non-operational. However, disclosure practices of companies often compel us to use the term "operational expenses". Expenses that can be posted without the use of such a term are posted appropriately into CMIE's detailed classification of expense items and, the remaining "operational expenses” are clubbed into one of the two data-fields: "Other operational expenses of industrial enterprises" or "Other operational expenses of non-financial services enterprises". This data-field includes all operating expenses of an industrial enterprise that are not already covered in any of the other data field. These are likely to be industry-specific operational expenses. Examples of such expenses can be preservation expenses, laboratory expenses, testing expenses etc.
Index Sr.No. 1 Chapter :1 Introduction of Company Content Page no. 5
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 3
2
Chapter-2: Comparative Balance sheet and Analysis of Balance Sheet
10
3
Chapter-3: Comparative Profit and Loss Account and Analysis of Profit & Loss Statement
15
4
Chapter-4: Common Size Statements
19
5
Chapter 5: Trend Analysis (Index Analysis)
23
6
Chapter 6: Analysis of Cash flow Statement
26
7
Chapter 7: Ratio Analysis
27
9 Chapter 9: Contemporary Issues in Accounting of the company
36
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 4
•
CHAPTER: 1 (Company profile)
1.1 Introduction of Company
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau word from the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir Singh and Gurbax Singh. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw a significant transformation in its business and scale. His sons Malvinder Mohan Singh and Shivinder Mohan Singh sold the company to the Japanese company Daiichi Sankyo in June 2008. Ranbaxy was established in 1961 and went public in the year 1973. It has global sales of US $1340 million for the year ended on 31st December, 2006. It has the largest market in USA (sales appx. US $380 million); then come Europe and BRICS (Brazil, Russia, India, China, South Africa).
1.2Company Details: Type Founded Public 1961
Headquarters- Gurgaon, Haryana, India Employees Website
•
-
1100 in R&D www.ranbaxy.com
For enquiries contact: M. Giridhar Venugopal Director – Global Business Development & Acquisitions Ranbaxy Laboratories Limited
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 5
Plot No. 90, Sector 32, Gurgaon – 122001 (Haryana), India E-mail: [email protected] • Registered Office A-41, Industrial Area Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali - 160 071 (Punjab), INDIA
1.3Products
Using the finest R&D and Manufacturing facilities, Ranbaxy Laboratories Limited manufactures and markets generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active Pharmaceuticals (API) and intermediates. The Company remains focused on ascending the value chain in the marketing of pharmaceutical substances and are determined to bring in increased revenues from dosage forms sales. Ranbaxy's diverse product basket of over 5,000 SKUs available in over 125 countries worldwide encompasses a wide therapeutic mix covering a majority of the chronic and acute segments. Healthcare trends project that the chronic treatment segments will outpace the acute treatment segments, primarily driven by a growing aging population and dominance of lifestyle diseases. Their robust performance in Cardiovasculars, Central Nervous System, Respiratory, Dermatology, Orthopedics, Nutritionals and Urology segments, clearly indicates that the Company has strengthened its presence in the fast-growing chronic and lifestyle disease segments. • Top 10 Molecules (2012) • Valacyclovir • Simvastatin • Donepezil • Atorvastatin & Combinations • Co-amoxyclav & Combinations • Ciprofloxacin & Combinations • Ketorolac Tromethamine • Imipenem+Cilastatin • Ginseng+Vitamins • Loratadine & Combinations
•
1.4 Company History: Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and one of the world's top 100 pharmaceutical companies. Long a specialist in the preparation of generic drugs, Ranbaxy is also one of the world's top 10 in that pharmaceutical category as well. Yet, with India's
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 6
agreement to apply international patent law at the beginning of 2005, Ranbaxy has begun converting itself into a full-fledged research-based pharmaceutical company. A major part of this effort has been the establishment of the company's own research and development center, which has enabled the company to begin to enter the new chemical entities (NCE) and novel drug delivery systems (NDDS) markets. In the mid-2000s, the company had a number of NCEs in progress, and had already launched its first NDDS product, a single daily dosage formulation of ciprofloxacin. Ranbaxy is a truly global operation, producing its pharmaceutical preparations in manufacturing facilities in seven countries, supported by sales and marketing subsidiaries in 44 countries, reaching more than 100 countries throughout the world. The United States, which alone accounts for nearly half of all pharmaceutical sales in the world, is the company's largest international market, representing more than 40 percent of group sales. In Europe, the company's purchase of RPG (Aventis) S.A. makes it the largest generics producer in that market. The company is also a leading generics producer in the United Kingdom and Germany and elsewhere in Europe. European sales added 16 percent to the company's sales in 2004. Ranbaxy's other major markets include Brazil, Russia, and China, as well as India, which together added 26 percent to the group's sales. Ranbaxy posted revenues of $1.18 billion in 2004. The company, which remains controlled and led by the founding Singh family, is listed on the National Stock Exchange of India in Mumbai.
1.5 Board of Directors At the helm of the entire operations is the experience and able direction of the people who make it all happen. Ranbaxy acknowledges their inspiring stewardship and indefatigable work.
•
Dr. Tsutomu Une Chairman Non Executive & Non Independent Director
Mr. Arun Sawhney CEO & Managing Director
Mr. Takashi Shoda Non Executive & Non Independent Director
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 7
Dr. Kazunori Hirokawa Non Executive & Non Independent Director
Dr. Anthony H. Wild Independent Director
Mr. Rajesh V. Shah Independent Director
Mr. Akihiro Watanabe Independent Director
Mr. Percy K. Shroff Independent Director
+
CHAPTER: 2 (Balance sheet 2008-2012) Balance Sheet of Ranbaxy Laboratories of 20072011
------------------ in Rs. Cr. ------------------Particular s Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 8
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluatio n Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities 211.00 210.52 210.21 210.19 186.54
211.00
210.52
210.21
210.19
186.54
0.67
6.60
175.85
175.66
1.18
0.00 1,713.16 0.00 1,924.83 229.59 4,103.94 4,333.53 6,258.36
0.00 4,915.28 0.00 5,132.40 195.39 4,065.33 4,260.72 9,393.12
0.00 3,748.54 0.00 4,134.60 175.83 3,172.55 3,348.38 7,482.98
0.00 3,330.92 0.00 3,716.77 162.07 3,563.30 3,725.37 7,442.14
0.00 2,350.68 0.00 2,538.40 365.07 3,137.96 3,503.03 6,041.43
Application Of Funds Gross Block Less: Accum. Depreciatio n Net Block 3,094.07 2,857.63 2,620.92 2,386.75 2,261.48
1,222.07
1,145.52
1,027.52
930.07
791.96
1,872.00
1,712.11
1,593.40
1,456.68
1,469.52
RA N B A X Y L A B O RAT O R I E S L I M I T E D Pa g e | 9
Capital Work in Progress Investme nts Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellane
222.62
330.18
414.92
428.77
327.42
3,410.79 1,655.23 3,689.95
3,804.44 1,489.91 1,292.63
3,833.69 1,230.48 1,534.65
3,618.03 1,198.52 1,024.54
3,237.55 976.07 882.91
66.90
22.44
25.56
49.86
69.38
5,412.08
2,804.98
2,790.69
2,272.92
1,928.36
2,382.72 1,871.14
1,470.45 2,689.85
1,967.65 728.56
2,351.98 1,885.08
882.99 111.07
9,665.94
6,965.28
5,486.90
6,509.98
2,922.42
0.00 5,157.68 3,755.31 8,912.99
0.00 2,491.08 927.82 3,418.90
0.00 3,082.89 763.03 3,845.92
0.00 3,840.11 731.20 4,571.31
0.00 1,177.35 738.14 1,915.49
752.95 0.00
3,546.38 0.00
1,640.98 0.00
1,938.67 0.00
1,006.93 0.00
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 10
ous Expenses Total Assets 6,258.36 9,393.11 7,482.99 7,442.15 6,041.42
•
Comparative Balance sheet of Ranbaxy Laboratories of 2007-2011
------------------ in Rs. Cr. -------------------
Particular s
Dec '1110
Dec '1009
Dec '0908
Dec '0807
% '1110
% '1009
% '0908
% '0807
Sources Of Funds Total Share Capital Equity Share Capital Share 0.48 0.31 0.02 23.65 0.228 007 0.228 007 0.147 472 0.147 472 0.009 515 0.009 515 0.108 12.67 825 12.67 825 14786
0.48 -
0.31 -
0.02 0.19
23.65 174.4
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 11
Application Money Preference Share Capital Reserves Revaluation Reserves
5.93
169.2 5 -
8
89.84 85 65.14 62 62.49 65 17.50 345 0.949 738 1.708 866
96.24 68 -
163
.44
-
-
-
-
1166. 320 74 2.12 -
417.6 2 417.8 3
980.2 4 1178. 37
31.12 518 24.13 293 11.12 438 28.14 077 27.24 721
12.53 768 11.24 175 8.490 159 10.96 6 10.11 95
41.70 027 46.42 176 55.60 58 13.55 467 6.347 077
Net worth 320 997.8 7.57 Secured Loans Unsecured Loans 34.2 19.56
13.76 390.7 5 376.9 9 40.8 4
-203
38.6 892.7 1 8 72.8 912.3 1 4 313 4.7 6
425.3 4 222.3 4
Total Debt
Total Liabilities
1910 .14
1400 .71
25.52 0.548 23.18 33.37 646 767 507 29
Application Of Funds Gross Block Less: Accum. Depreciatio n Net Block 236. 236.7 44 1 76.5 118.0 5 0 159. 118.7 234.1 7 125.2 7 138.1 1 8.27 9.03 9.81 5.54
97.45
6.68
11.48
10.48
17.44
136.7
9.34
7.45
9.39
-0.87
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 12
89 Capital Work in Progress
1
2 13.85 215.6 6 31.96 510.1 1 24.30 517.7 7 384.3 3 1,156 .52 1,023 .08 757.2 2 31.83
12.84 101.3 -32.58 -20.42 5 380.4 -10.35 8 222.4 5 141.6 3 19.52 344.5 6 1,468 .99 11.10 185.4 6 198.1 3 -3.23 30.95
107. 84.74 56
Investmen 393. ts 29.25 65 Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions 165. 259.4 32 3 2,39 242.0 7.32 2 44.4 6 -3.12
-0.76
5.96
11.75
21.08
2.67
22.79
-15.77
49.79
16.04
-12.21 -48.74 -28.13
2,60 14.29 7.10 912. 497.2 27 0 1,961 818. .29 71 2,70 1,478 0.66 .38 -
92.95
0.51
22.78
17.87
62.04
-25.27 -16.34
166.3 7 1,597. 20 122.7 6 226.1 7 -0.94
1,774 -30.44 .01 3,587 .56 2,662 .76 -6.94
269.2 0
-61.35
38.77
26.94
-15.72
107.0 5 304.7
-
-
2,66 591.8 6.60 1 2,82 164.7
-19.20 -19.72 21.60 4.35
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 13
7.49 Total CL & Provisions Net Current Assets Miscellaneo us Expenses Total Assets
9 725.3 9 297.6 9 2,655 .82
5 160.7 0 -11.10 -15.87 138.6 5
5,49 427.0 4.09 2 1,905 2,79 .40 3.43 -
931.7 -78.77 4
116.1 1
-15.36
92.53
-
-
-
-
-s
1,910 3,13 .12 4.75
40.84
1,400 -33.37 .73
25.53
0.55
23.19
Interpretation
? Total of the shareholder funds and liabilities increase continuously in 2009 to
2011 because of growth of the company.
? Total liabilities have been increasing till 2011. ?
Current liabilities have also been increased in 2011. Purchases investments and assets every year.
? The total assets also increase year which shows that company
? Its shows company’s good profitability and financial soundness. ? The Net Block of a company was continuously increased for but in 2010 it was
decreased.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 14
CHAPTER: 3 (Profit and Loss account 2007-11)
Profit and Loss Account of Ranbaxy lab.
Particulars Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income 7,709.17 22.58 7,686.59 3,990.57 135.72 3,831.7 4 5,687.33 40.96 5,646.37 562.45 161.43 6,370.25 4,797.49 15.90 4,781.59 485.66 33.96 5,301.21 4,676.21 24.17 4,652.04 -1,587.64 115.59 3,179.99 4,344.39 51.37 4,293.02 551.13 40.66 4,884.81 Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 15
Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturin g Expenses Selling and Admin Expenses Miscellaneou s Expenses Preoperative Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax 2,523.08 194.98 845.24 2,181.22 132.75 608.28 1,916.58 109.57 582.50 2,049.30 108.83 472.65 1,861.17 90.35 420.04
112.69
96.68
89.94
94.65
82.60
1,579.37
1,332.70
1,306.25
1,402.77
1,341.03
1,283.54
185.14
158.07
383.26
123.90
0.00 6,538.9 0 1,283.4 1 2,707.16 69.44 2,776.60 274.08 7.83 3,058.51
0.00
0.00
0.00
0.00
4,536.77 1,271.03 1,833.48 54.19 1,779.29 228.35 0.00 1,550.94
4,162.91 652.64 1,138.30 39.47 1,098.83 148.20 0.00 950.63
4,511.46 256.17 -1,331.47 145.83 -1,477.30 154.47 0.00 -1,631.77
3,919.09 414.59 965.72 93.43 872.29 118.73 0.00 753.56
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 16
Extraordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%)
15.44
21.88
111.42
17.76
35.46
3,043.07 6.69 3,052.0 5 4,015.82 0.00 0.07 -0.32 4,220.00
1,572.82 415.48 1,148.73
1,062.05 488.86
-1,614.01 -574.24
789.02 156.69 617.72
571.98 -1,044.80
2,355.55 0.00 84.21 13.99 4,210.41
2,246.33 0.00 0.00 0.00 4,204.17
2,462.16 0.00 0.00 0.00 4,203.70
2,057.93 0.00 317.15 53.90 3,730.71
-72.32
27.28
13.61
-24.85
16.56
0.03
40.00
0.00
0.00
170.00
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 17
•
Comparative Profit and loss account of Ranbaxy ltd. 20072011
------------------ in Rs. Cr. -------------------
Particular s
Dec '1110
Dec '1009
Dec '0908
Dec '0807
% '1110
% '1009
% '0908
% '0807
Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustment s Total Income
2,021. 84 -18.38 2,040. 22 4,553. 02 -25.71 2,538. 889.84 25.06 864.78 121.28 -8.27 129.55 2,073. 30 331.82 -27.20 359.02 2,138. 77 74.93 1,704. 35.55 -44.87 36.13 809.50 18.55 157.61 18.09 2.59 -34.22 2.78 130.59 7.64 -52.95 8.36 388.07
76.79
15.81
127.47 1,069. 04
-81.63 2,121. 22
-15.93 -39.85
375.35 20.17
-70.62 66.71
184.28 -34.90
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 18
51
82
Expenditu re Raw Materials Power & Fuel Cost Employee Cost Other Manufacturi ng Expenses Selling and Admin Expenses Miscellaneo us Expenses Preoperativ e Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT
341.86 264.64 132.72 0.74 188.13 15.67 13.81 -6.48 10.11
62.23
23.18
18.48
46.88
21.16
0.68
20.45
236.96
25.78
109.85
52.61
38.96
4.43
23.24
12.52
16.01
6.74
-4.71
12.05
16.56
7.49
-4.98
14.59
246.67
26.45
-96.52
61.74
18.51
2.02
-6.88
4.60
1,098. 40
27.07
225.19
259.36
593.28
17.13
-58.76
209.33
0.00
0.00
0.00
0.00
-
-
-
-
2,002. 13 12.38 4,540. 64 15.25 4,555. 89
373.86
348.55 396.47 2,469. 77 106.36 2,576. 13
592.37 158.42 2,297. 19 52.40 2,349. 59
44.13
8.98
-7.73
15.11
618.39
0.97 247.65 28.14 256.05
94.75
154.77 185.49 -72.93 174.38
-38.21 237.87 56.08 269.36
695.18
61.07
14.72
37.29
680.46
61.93
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 19
Depreciatio n Other Written Off Profit Before Tax Extraordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Shares in issue (lakhs) Earnings Per Share (Rs) Equity
45.73
80.15
-6.27
35.74
20.03
54.08
-4.06
30.10
7.83 4,609. 45 -6.44
0.00
0.00 2,582. 40
0.00 2,385. 33 -17.70
297.20
-
158.26
316.54
600.31
63.15
-89.54
93.66
-29.43
-80.36
527.36
-49.92
4,615. 89 408.79 4,200. 78 1,660. 27 0.00
510.77
2,676. 06 1,063. 10 1,616. 78 215.83 0.00
2,403. 03 730.93 1,662. 52 404.23
293.48 -98.39 365.69 70.48
48.09
165.80 185.13 154.75 -8.77
304.56 466.48 269.14 19.64
-73.38
-15.01
576.75
100.83
109.22
4.86
0.00
0.00 317.15
-
-
-
100.00 100.00
-84.14
84.21
0.00
-99.92
-
-
-14.31
13.99
0.00
-53.90
102.29
-
--
9.59
6.24
0.47
472.99
0.23
0.15
0.01
12.68
-99.60 -39.97
13.67 40.00
38.46 0.00
-41.41 -
365.10 -99.93
100.44 -
154.77 -
250.06 -
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 20
Dividend (%)
170.00
100.00
Interpretation
? Total income is more than total expenditure in every year. ? Net profit has been increased in 2011 around 620%. ? In 2011 the earning per share shows in negative change. It represent losses, non beneficial to the
company.
CHAPTER:4 Common size Statement of Ranbaxy ltd. Balance Sheet of Ranbaxy Laboratories of 20072011
------------------ in Rs. Cr. ------------------Particulars Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
Sources Of Funds Total Share Capital Equity Share Capital Share Application 3.37149 2.241215 2.809175 2.824322 3.08768
3.37149 0.010706
2.241215 0.070264
2.809175 2.3499996
2.824322 2.360343
3.08768 0.019532
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 21
Money Preference Share Capital Reserves Revaluatio n Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities 0 27.37394 0 30.75614 3.668533 65.57533 69.24386 100 0 52.32851 0 54.63999 2.08014 43.27987 45.36001 100 0 50.094214 0 55.253388 2.3497323 42.396879 44.746612 100 0 44.75756 0 49.94222 2.177734 47.88005 50.05778 100 0 38.90933 0 42.01654 6.042775 51.94068 57.98346 100
Application Of Funds Gross Block Less: Accum. Depreciatio n Net Block Capital Work in Progress Investme nts Inventories Sundry Debtors 49.43899 30.42262 35.025037 32.07071 37.43292
19.527
12.19532
13.73141
12.49733
13.10884
29.91199 3.557162
18.2273 3.51513
21.293627 5.5448424
19.57338 5.761373
24.32408 5.419587
54.49974 26.4483 58.96033
40.50245 15.86173 13.76147
51.232061 16.443694 20.508513
48.61539 16.10449 13.76672
53.58922 16.1563 14.61428
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 22
Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellane ous Expenses Total Assets
1.06897
0.238899
0.3415747
0.669968
1.148406
86.47761
29.8621
37.293782
30.54117
31.91899
38.07259 29.89825
15.65456 28.63642
26.29497 9.7362151
31.6035 25.32978
14.6156 1.838475
154.4484
74.15308
73.324968
87.47445
48.37306
0 82.41264 60.0047 142.4173
0 26.52029 9.877666 36.39796
0 41.198639 10.19686 51.395498
0 51.59947 9.825118 61.42459
0 19.48797 12.21799 31.70596
12.03111
37.75512
21.929469
26.04986
16.66711
0
0
0
0
0
100
100
100
100
100
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 23
•
Profit and loss account (common size statement)
Dec '11 Dec '10 Dec '09 Dec '08 Dec '07
Particulars Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturin
100.00 0.29 99.71 -51.76 1.76 49.70
100.00 0.72 99.28 9.89 2.84 112.01
100.00 0.33 99.67 10.12 0.71 110.50
100.00 0.52 99.48 -33.95 2.47 68.00
100 1.182444 98.81756 12.68602 0.93592 112.4395
32.73 2.53 10.96 1.46
38.35 2.33 10.70 1.70
39.95 2.28 12.14 1.87
43.82 2.33 10.11 2.02
42.84077 2.079694 9.668561 1.901303
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 24
g Expenses Selling and Admin Expenses Miscellaneou s Expenses Preoperative Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extraordinary items PBT (Post Extra-rod Items) Tax Reported Net Profit 20.49 23.43 27.23 30.00 30.86809
16.65
3.26
3.29
8.20
2.851954
0.00
0.00
0.00
0.00
0
84.82 16.65 -35.12 0.90 -36.02 3.56 0.10 -39.67
79.77 22.35 32.24 0.95 31.29 4.02 0.00 27.27
86.77 13.60 23.73 0.82 22.90 3.09 0.00 19.82
96.48 5.48 -28.47 3.12 -31.59 3.30 0.00 -34.90
90.21036 9.543112 22.22913 2.15059 20.07854 2.73295 0 17.34559
0.20
0.38
2.32
0.38
0.816225
-39.47 0.09 -39.59
27.65 7.31 20.20
22.14 10.19 11.92
-34.52 -12.28 -22.34
18.16181 3.60672 14.2188
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 25
Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Shares in issue (laths) Earnings Per Share (Rs) Equity Dividend (%)
52.09 0.00 0.00 0.00 54.74
41.42 0.00 1.48 0.25 74.03
46.82 0.00 0.00 0.00 87.63
52.65 0.00 0.00 0.00 89.90
47.36983 0 7.300219 1.240681 85.8742
-0.94
0.48
0.28
-0.53
0.381181
0.00
0.70
0.00
0.00
3.913093
Analysis of Common Size Statement
? The contribution of net sales in total income was nearly same in all the year
It was near about 98 to 100%.
? The contribution of total expenditure was continuous decrease year by year,
but in 2011 it Increased.
? So that from the above common size statement we can easily find out that Company is at a growing stage.
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 26
CHAPTER 5 (Trend analysis) Balance sheet of Ranbaxy ltd.
particulars Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories 2007 2008 112.67 82 112.67 82 14886. 44 141.70 03 146.42 18 44.394 23 113.55 47 106.34 71 123.18 51 105.53 93 117.43 9 99.12 625 130.95 41 111.75 21 122.79 2009 112.68 9 112.68 9 14902. 54 159.46 62 162.88 21 48.163 37 101.10 23 95.585 25 123.86 11 115.89 4 129.74 39 108.4 3 126.72 41 118.41 33 126.06 2010 112.85 52 112.85 52 559.32 2 209.10 03 202.19 04 53.521 24 129.55 33 121.62 96 155.47 84 126.36 11 144.64 37 116.5 081 100.84 3 117.50 98 152.64 2011 113.11 25 113.11 25 56.779 66 72.879 34 75.828 47 62.889 31 130.78 37 123.70 8 103.59 07 136.81 62 154.30 96 127.3 885 67.992 18 105.35 1 169.58
100 100 100
100
100 100 100 100 100
100 100 100 100 100 100
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 27
Sundry Debtors 100 Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Differed Credit Current Liabilities Provisions 100 Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) 100 100 100 100 100 100 100 100 100 100 100
04 116.04 13 71.865 09 117.86 8 266.36 54 1697.2 222.75 99 326.16 55 99.059 8 238.64 96 192.53 27
47 173.81 73 36.840 59 144.71 83 222.83 94 655.94 67 187.75 19 261.84 99 103.37 2 200.78 162.96 86
38 146.40 56 32.343 61 145.45 94 166.53 08 2421.7 61 238.33 95 211.58 36 125.69 7 178.48 7 352.19 73
11 417.93 05 96.425 48 280.65 71 269.84 68 1684.6 49 330.75 12 438.07 53 508.75 31 465.31 12 74.776 8
123.1 854 125.79 6 123.86 41
123.8 614 129.87 56 138.45 02
155.4 785 137.37 81 179.00 31
103.5 909 148.01 67.048 96
Interpretation
? Net worth was rapidly increasing from last 3 years but it has decreased in 2011. ? Net block of the balance sheet has been increasing from 2008 to 2011 rapidly. ? Total assests was decreased in 2011.
Profit and loss account (Trend analysis)
Income Sales Turnover Excise Duty Net Sales 2007 100 100 100 2008 107.63 79 47.050 81 108.36 29 2009 110.429 5 30.9519 2 111.380 6 2010 130.912 79.7352 5 131.524 4 2011 177.451 1 43.9556 2 179.048 5
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 28
Other Income Stock Adjustments Total Income Expenditur e Raw Materials Power & Fuel Cost Employee Cost Other Manufacturi ng Expenses Selling and Admin Expenses Miscellaneo us Expenses Preoperative Exp Capitalized Total Expenses Operating Profit PBDIT Interest PBDT
100 100 100
288.07 284.28 43 65.09 956 110.10 82 120.45 38 112.52 5 114.58 84 104.60 39 309.33 01
88.1207 7 83.5218 9 108.52 44 102.977 2 121.272 8 138.677 3 108.886 2 97.4064 7 127.578 7
102.054 397.024 1 130.40 94 117.196 2 146.928 6 144.814 8 117.046 99.3788 4 149.427
724.071 333.792 4 78.441 95 135.564 2 215.805 2 201.228 5 136.428 6 117.772 9 1035.94 8
100 100 100 100 100 100
100
115.1 15 61.788 76 137.87 3 156.08 48 169.35 9 130.10 19
106.22 13 157.418 2 117.870 6 42.2455 3 125.970 7 124.821
115.76 08 306.575 2 189.856 3 58.0006 4 203.979 2 192.327 1
166.84 74 309.56 13 280.32 6 74.323 02 318.31 2 230.84 31
100 100 100 100
Depreciatio n Other Written Off Profit Before Tax Extraordinary items PBT (Post
100
100 100 100
216.54 1 50.084 6 -
126.151 9 314.213 2 134.603
205.815 1 61.7033 3 199.338
405.87 5 43.542 02 -
R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 29
Extra-ord Items) Tax 100 Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualize d) Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs) 100 100
204.55 9 366.48 2 169.13 8 119.64 26
7 311.991 8 92.5953 5 109.154 8
4 265.160 5 185.962 9
385.67 7 4.2695 77
494.08 3 114.462 195.1 1 388 0.0220 72 0.5936 9
100 100
0 0
0 0
26.5521 25.9554 7
100 100 100 100
112.67 83 -150.06 0 123.86 41
112.690 9 82.1859 9 0 138.450 2
112.858 1 164.734 3 23.5294 1 179.003 1
113.11 52 436.71 5 0.0176 47 67.048 96
Interpretation
? Total income of the company is decreased in 2011 as compared to last four years. ? Expenditure is increased in 2011, which is loss for a company. ? Earnings per share were increasing till 2010, but it went to negative in 2011.
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CHAPTER 6: (Cashflow Statement)
Cash Flow of Ranbaxy Laboratories Particulars. Dec '11 Dec '10 Dec '09 1061. 92 665.43 86.12 in Rs. Cr. Dec '08 Dec '07 1619.0 8 -599.22
Net Profit Before Tax
1565. 3048.6 25 7 138.14 1094.7 3 1268.9 8 1168. 89 2067. 80 991.4 8
774.41
Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents
685.77
-462.91
-708.18
214.14 793.4 6 862.39 68.93
2817.20
132.19
-35.13 92.57 161.83 126.70 69.26 161.8 3
1755.0 7 172.14 1927.21
109.78 62.36 172.14
Interpretation:
? It shows the cash inflow and outflow of the company. ? The highest cash equivalents in the year 2008 in last five years. ? There is a major difference between the financing activities of the year
2007 & 2008 because of company issue shares more than last year
? Cash generated from operating activities is also highest in the 2010 as compare
to the last five years. It may be because of high collection of
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debtors or sales of goods and services.
? It shows from the last five year analysis that cash flow is in increasing and decreasing mood.
Chapter 6 (Ratio analysis)
6.1- CLASSIFICATION OF RATIO
As per requirement of various users the ratio may be classified in following groups.
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Profitability Ratio:Gross profit ratio. Net profit ratio 3. Return on capital employs ratio 4. Return on share holders fund 5. Return on equity share holders fund 6. Operating ratio 7. Expenses ratio 8. Earnings per share 9. Dividend per share 10. Price Earnings ratio
1. 2.
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Liquidity ratio:1. Current ratio 2. Liquid ratio
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Leverage ratio:1. Debt equity ratio 2. Proprietary ratio 3. Capital gearing ratio
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Activity ratio:1. Sales turnover ratio 2. Total assets turnover ratio 3. Debtor ratio 4. Creditor ratio 5. Book value per share 6. Working capital turnover ratio
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Coverage ratio:1. Debt service coverage ratio 2. Interest coverage ratio
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Profitability ratio
Sales
1. Gross profit ratio.= Gross profit *100
Year Gross profit Sales Profit margin%
2007
2008
2009
2010
2011
3,094.07 7,709.17
40.13493
2,857.63 5,687.33
50.24555
2,620.92 4,797.49
54.63107
2,386.75 4,676.21
51.04027
2,261.48 4,344.39
52.05518
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Interpretation: Profit is increased in 2009 because of more production. It is in 2007 is very less as compare to other.
2. Net profit ratio
= Net profit ×100 Sales 2008 1,712.11 5,687.33 30.1039 2009 1,593.40 4,797.49 33.2132 2010 1,456.68 4,676.21 31.1509 2011 1,469.52 4,344.39 33.8257
Year Net profit Sales Profit margin%
2007 1,872.00 7,709.17 24.2828
Interpretation: Net profit is increased in the 2011 by 33.83% while it is less in the 2007 by 24.28%. It because of increasing in more selling of products.
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3. Operating ratio = Operating exps ×100 Sales
Years Operating exps Sales Operating ratio %
2007 6,538.90 7,709.17 84.82
2008 4,536.77 5,687.33 79.77
2009 4,162.91 4,797.49 86.77
2010 4,511.46 4,676.21 96.48
2011s 3,919.09 4,344.39 90.21
Interpretation: In the ratio exps is 96.48% in the 2010 it decrease the profit of the company.
4. Earnings per share = Earning per share *100 Share holders fund
Years Earnings per share Share
2007
2008
2009
2010
2011
-72.32 1,924.83
27.28 5,132.40
13.61 4,134.60
-24.85 3,716.77
16.56 2,538.40
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holders fund E.P.S ratio -3.76 0.53 0.329 -0.67 0.65
5. Return on capital employs Ratio =
E.B.I.T ×100 Net worth
2007 E.B.I.T Net worth Return on capital employs ratio
2008
2009
2010
2011
-3,058.51 1,924.83
158.90
1,550.94 5,132.40
30.22
950.63 4,134.60
22.99
-1,631.77 3,716.77
43.90
753.56 2,538.40
29.69
6. Dividend per share = equity dividend ×100 Pref, share
Years equity dividend Pref, share Dividend ratio
2007
2008
2009
2010
2011
0.07 211.00
0.033
84.21 210.52
40
0.00 210.21
0
0.00 210.19
0
317.15 186.54
170.017s
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Liquidity ratio:1. Current ratio = Current Assets Current liabilities
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Years Current assests Current liabilities Ratio
2007 5,412.08
2008 2,804.98
2009 2,790.69
2010 2,272.92
2011 1,928.36
5,157.68
1.05
2,491.08
1.13
3,082.89
0.90
3,840.11
0.59
1,177.35
1.64
Interpretation: ration is increased by 1.05 in the 2007 while it is 1.64 in last year so it is good for company
2. Liquid ratio = Current assests –(stock-prepared exps).
Current liabilities. Years
Current assests – (stockprepared exps).
2007
2008
2009
2010
2011
5,276.36
2,643.55
2,756.73
2,157.33
1,887.70
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Current liabilities.
5,157.68 1.023
2,491.08 1.06
3,082.89 0.89
3,840.11 0.56
1,177.35 1.60
Ratio
Interpretation: In the year 2011 it is 1.6 so reduces the liabilities.
•
Leverage ratio:-
1. Debt equity ratio = Long term debt Share holders fund Year Long term debt Share holders fund 2007 2008 2009 2010 2011
4,333.53
4,260.72
3,348.38
3,725.37
3,503.03
1,924.83
5,132.40
4,134.60
3,716.77
2,538.40
Ratio
2.25
0.83
0.81
1.00
1.38
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Interpretation: In the year 2007 it is 2.25 while it is1.38 in the 2011.
2. Proprietary ratio= Share holders fund Total assets Years Share holders fund Total assets 2007 2008 2009 2010 2011
1,924.83
5,132.40
4,134.60
3,716.77
2,538. 40 6,041. 42
0.42
6,258.36
0.31
9,393.11
0.55
7,482.99
0.55
7,442.15
0.50
Ratio
Interpretation: In the 2008 & 2009 it is 0.55 while it is in the 2007 by 0.31.
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ACCOUNTIG POLICES AND NOTES
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Significant accounting polices:Schedule ‘N’:a. Basis preparation of financial statement:-
The financial statement are prepared under the historical cost conventional accept for certain fixed assets which are revalued in accordance with the generally accepted accounting principles in India. And the provisions of the companies act 1956.
b. Use of estimates :-
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expense during the accounting period.
c. Own fixes assts:-
Fixed assets are stated at cost net of value added tax. And includes amounts added on revaluations less accumulated depreciation and impairment loss if any all cost including financial cost in commencement of commercial product net charges on foreign exchange contract arising from exchange rate variations attribute table to the fixed assets are capitalized.
d. Leased assts:? Operating leases rentals are expensed with reference to lease terms and other considerations. ?
I. finance leases prior to 1st April, 2001: rentals are expensed with reference to lease terms and other consideration.
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II. Financial leases on or after 1st April. 2001: the lower of the value of the assets and present value of the minimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to profit and loss account.
e. Intangible assets:-
Intangible assets are stated at cost of acquisition less accumulated amortiosation.
f.
Depreciation
epreciation on fixes assets is provided to the extent of depreciable amount on written down value method at rates and in the manner prescribed in the company’s act 1956. Depreciation is provided on straight line method over their useful life. 100% depreciation is provided in the year of additions, on additions forming an integral part of existing plans including incremental cost arising on account of translation of foreign currency liabilities for accusation of fixed assets. Depreciation is provided as aforesaid over the residual life of the assets as certifies by values on assets acquired under fiancé lease from 1st April 2001. Depreciation is provided over the lease term.g. Foreign currency transactions:? Transactions denominated in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction.
? Monitory items denominated in foreign currency at year and are restated at year end
rates in case of items which are covered by forward exchange contracts.
? Nonmonetary currency items are carried at cost.
h. Inventories:-
Items of inventories are measured at lower of the cost and net realizable value after providing for obsolescence if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.
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Employee benefits:? Short term employee benefits are recognize as an expense at the undiscounted
amount in pal account of the year in which the rendered services is rendered.
? In respect of employees stock options the excess of fair price on the date of grant
over the exercise price is recognized as differed compensation cost amortized over the vesting period.
j.
Provision for current differed tax
rovision for tax is made after taking in to consideration benefits admissible under the provisions of the income tax act 1961. Differed tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws that are in acted as on the balacesheet date.k. Provisions contingent liabilities and assts:-
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation is a result of past events. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized not disclosed.
Conclusion
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The RANBAXY Project has documented substantial differences in the treatment of student and faculty in the College of Medicine. Current objectives are to 1) continue with analysis of the data collected, particularly the ethnographic interviews with faculty and department chairs, and
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2) Continue to meet with faculty and administration to identify additional strategies for solving the problems identified. The ultimate goal of the project is to achieve parity for student and faculty in an environment of academic excellence.
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Bibliography (References):
? ? ?
www.google.comhttp://www.moneycontrol.com/financials/ranbaxylaboratories/balance-sheet/RL#RL www.ranbaxy.com International Directory of Company Histories, Vol. 70. St. James Press, 2005.http://www.fundinguniverse.com/company-histories/ranbaxy-laboratories-ltd-history/
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