Académique Documents
Professionnel Documents
Culture Documents
FOR
SUN PHARMACEUTICALS LIMITED IN
SUN PHARMACEUTICAL LIMITED
Sources Of Funds
Total Share Capital 94.16 94.27 98.07 103.56 103.56
Equity Share Capital 92.76 92.87 96.7 103.56 103.56
Application Of Funds
Total CA, Loans & Advances 1,757.17 2,259.95 2,191.88 2,911.62 2,743.66
Deffered Credit 0 0 0 0 0
Current Liabilities 224.95 273.3 345.23 845.73 696.34
Income
Sales Turnover 1056.01 1353.01 1722.13 2427.35
Excise Duty 48.73 61.37 59.57 58.84
Net Sales 1007.28 1291.64 1662.56 2368.51
Other Income 232.87 525.55 750.26 914.83
Stock Adjustments -0.45 57.23 41.41 17.38
Total Income 1239.7 1874.42 2454.23 3300.72
Expenditure
Raw Materials 563.75 899.67 1214.48 1564.61
Power & Fuel Cost 14.48 25.55 31.14 37.36
Employee Cost 82.78 82.01 98.87 120.2
Other Manufacturing Expenses 24.97 23.11 25.08 35.21
Selling and Admin Expenses 163.72 287.47 370.2 415.35
Miscellaneous Expenses 37.1 15.97 18.85 14.62
Preoperative Exp Capitalised 0 0 0 0
Total Expenses 886.8 1333.78 1758.62 2187.35
Mar '05 Mar '06 Mar '07 Mar '08
12 mths
2833.65
59
2774.65
1276.22
23.78
4074.65
1961.89
50.44
148.31
43.93
494.98
18.06
0
2717.61
Mar '09
12 mths
80.82
1357.04
2.77
1354.27
58.86
0
1295.41
11.7
1307.11
30.12
1265.29
755.72
0
284.79
48.4
2071.16
61.09
275
248.72
RATIO ANALYSIS
(Cash 4 11 36 23.29
+ Marketable secrities - - - -
+ Accounts receivable) 235 256 310 1,055
/ Current liabilities 224.95 273.3 345.23 845.73
= Quick ratio 1.06 0.98 1.00 1.275501638
PROFITABILITY RATIOS
1,186.94
696.34
1.70
Mar'09
20.17
-
680
696.34
1.01
Mar'09
2,774.65
680.03
4.08018763878064
Mar'09
365
4.080188
89.4566622910513
Mar'09
2,774.65
486.74
5.70047664050623
Mar'09
365
5.70047664050623
64.0297334798984
Mar'09
1,186.94
5,175.02
0.23
Mar'09
1,298.18
2.77
468.657039711191
Mar'09
5,175.02
103.56
49.9712244109695
Mar'09
1,186.94
5,175.02
0.23
Mar'09
1,186.94
103.56
11.46
Mar'09
719.94
5,151.42
0.139755640192413
Mar'09
5,047.86
1,186.94
4.25283502114681
Mar'09
1,265.29
1,186.94
1.06601007633073
Mar'09
1,265.29
103.56
12.2179412900734
Mar'09
570.08
2,774.65
0.205460148126791
Mar'09
80.82
2,774.65
0.02912799812589
Mar'09
1,265.29
2,774.65
0.456017876128521
Mar'09
2,774.65
5,175.02
0.536162179083366
Mar'09
2774.65
699.26
3.9679804364614
Mar'09
2774.65
1,186.94
2.33764975483175
Mar'09
1,265.29
5,175.02
24.4499538166036
0.456017876128521
0.54
85.05
1,265.29
103.56
1221.8%
5,175.02
104
49.97
2445.0%
1,221.79
ANALYSIS OF FINANCIAL RATIO
1.LIQUIDITY RATIOS
These ratios indicate the ease of turning assets into cash. These ratios are important in
measuring the ability of a company to meet both its short term and long term
obligations.
CURRENT RATIO
The ratio is regarded as a test of liquidity for a company. It expresses the 'working capital'
relationship of current assets available to meet the company's current obligations.
Current Ratio = Total Current Assets/ Total Current Liabilities
Current Ratio
2
3; 1.97
1.95 2; 1.94
1.9 1; 1.89
1.85
1.8 Current Rati
1.75 4; 1.74
1.7 5; 1.7
1.65
1.6
1.55
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
Generally acceptable current ratio is 2 to 1. But also depends on the nature of the
business and the characteristics of its current assets and liabilities. Company is never at
an optimal figure and has seen decline in its ratio which is risky. Company should
increase its current assets by either taking debt or converting non into current one so
as to have a safety cover and credit worthiness.
Generally acceptable current ratio is 2 to 1. But also depends on the nature of the
business and the characteristics of its current assets and liabilities. Company is never at
an optimal figure and has seen decline in its ratio which is risky. Company should
increase its current assets by either taking debt or converting non into current one so
as to have a safety cover and credit worthiness.
QUICK RATIO
The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best
measures of liquidity.
Quick Ratio = Cash + Government Securities + Receivables / Total Current Liabilities
It is measure of true working capital and readiness of them to be converted into liquid
assets without obsolete inventory.
Quick Ratio
1.4
4; 1.27550164
1.2
1; 1.06
1 2; 0.98 3; 1 5; 1.01
0.6
0.4
0.2
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
INTERPRETATION
An acid-test of 1:1 is considered satisfactory .It is maintaining optimal ratio with huge
amount of receivables. They have to maintain control over their collection policy so as to
meet its requirements.
An acid-test of 1:1 is considered satisfactory .It is maintaining optimal ratio with huge
amount of receivables. They have to maintain control over their collection policy so as to
meet its requirements.
2.SOLVENCY RATIOS
DEBT-EQUITY RATIO
This Debt/Equity indicates the extent to which the business is reliant on debt financing
Debt/Equity Ratio = Total Liabilities / Net Worth
D/E Ratio
2
1.8 1; 1.845057172
1.6
1.4 2; 1.3782954
1.2 D/E Ratio
1
0.8
0.6 3; 0.5770099
0.4
0.2 4; 0.22536493
5; 0.13975564
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
INTERPRETATION
Generally, the higher this ratio, the more risky a creditor will perceive its exposure in
your business, making it correspondingly harder to obtain credit. But it is beneficial
from owner point of view as cost of debt is lower than equity but exposes firm to
distress costs. Over the years firm is moving towards the lower debt may be as a
measure to trade off between risk and debt.
DEBT RATIO
This ratio determines proportionate of debt in financing total assets of company.
DEBT RATIO = Total debt (secured loans +unsecured loans + C.liabilities)/Total Assets
Debt ratio
0.8
0.7 2; 0.7
0.6
0.5
Debt ratio
0.4
4; 0.34067571
0.3
5; 0.23
0.2 3; 0.19
0.1 1; 0.11
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
INTERPRETATION
This ratio is important from investors point as it helps in calculating leverage factor for
firm and thus determines borrower ability to pay back. Owners generally prefer high
values as it reduces their cost but trade off has to be maintained so as to balance both
benefit and costs of debt. Over the years, company has reduce the level of debt in their
capital mix may be to save itself from bankruptcy or to increase their worthiness in
market.
Interest coverage is a financial ratio that provides a quick picture of a company’s ability to
pay the interest charges on its debt. The 'coverage' aspect of the ratio indicates how
many times the interest could be paid from available earnings, thereby providing a sense
of the safety margin a company has for paying its interest for any period.
Ratio=PBIT/total interest expenses
many times the interest could be paid from available earnings, thereby providing a sense
of the safety margin a company has for paying its interest for any period.
Ratio=PBIT/total interest expenses
Coverage ratio
500
5; 468.6570397
450
400
350
300 Coverage ratio
250
200 4; 208.944664
150
100
3; 73.788636
50 2; 44.515583
0 1; 0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
A higher value indicates firm healthy position to face turbulent time. Owing to low
interest charges and low debt, it has higher coverage ratio improvising over years
ANCIAL RATIOS
3.PROFITABILITY RATIOS
atios are important in
nd long term
GROSS MARGIN RATIO
It measures the percentage of sales remaining (after obtaining or manufactu
goods sold) available to pay the overhead expenses of the company.
Gross Margin Ratio = Gross Profit / Net Sales
ses the 'working capital' Year Mar’05 Mar’06 Mar’07 Mar’08 Mar’09
rrent obligations. Gross
margin 0.318978 0.202301 0.176228 0.258023 0.20546
Gross margin
0.35
1; 0.318977841
0.3
0.25 4; 0.25802298
0.2 2; 0.202301 5; 0.20546014
3; 0.1762282
0.15
0.1
0.05
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
Current Ratio
NET MARGIN
5; 1.7
This ratio is the percentage of sales dollars left after subtracting the Cost of
5 5.5 and all expenses, except income taxes. It provides a good opportunity to com
company's "return on sales" with the performance of other companies in yo
is calculated before income tax because tax rates and tax liabilities vary from
the nature of the company for a wide variety of reasons, making comparisons after taxes muc
s. Company is never at difficult.
Company should Net Profit Margin Ratio = Net Profit Before Tax / Net Sales
n into current one so
the nature of the company for a wide variety of reasons, making comparisons after taxes muc
s. Company is never at difficult.
Company should Net Profit Margin Ratio = Net Profit Before Tax / Net Sales
n into current one so
Over the years.net profit has increased showing growth as well as better effi
reflected in the lower operating costs.
5; 1.01
This measures how efficiently profits are being generated from the assets e
the business when compared with the ratios of firms in a similar business.
Return on Assets = Net Profit Before Tax / Total Assets
5 5.5
Year Mar’05 Mar’06 Mar’07 Mar’08 Mar’09
ROA 0.988074 0.204115 0.926164 0.690594 1.06601
ROA
1.2
5; 1.06601
1 1; 0.988073691
3; 0.9261637
0.8
timal ratio with huge
collection policy so as to
ROA
1.2
5; 1.06601
1 1; 0.988073691
3; 0.9261637
0.8
4; 0.69059359
0.6
0.4
INTERPRETATION
Barring first year, has performed well over the last years reaching at a aroun
indicating around more than 100% growth on the invested fund.
RETURN ON INVESTMENT
D/E Ratio
The ROI is perhaps the most important ratio of all. It is the percentage of retu
invested in the business by its owners. In short, this ratio tells the owner whe
all the effort put into the business has been worthwhile.
Return on Investment = Net Profit before Tax / Net Worth
5; 0.13975564
5 5.5
Year Mar’05 Mar’06 Mar’07 Mar’08 Mar’09
ROI 0.988074 0.204115 0.926164 0.690594 1.06601
ROI
ceive its exposure in
But it is beneficial 1.2
t exposes firm to 1
5; 1.066
1; 0.988073691
ebt may be as a 3; 0.9261637
0.8
4; 0.69059359
0.6
0.4
0.2 2; 0.2041151
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
4; 0.69059359
0.6
0.4
0.2 2; 0.2041151
ets of company.
bilities)/Total Assets 0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Over the last 5years, company has seen increase in return over the invest
in the net value addition rising to around 24% in last fiscal year.
4.EFFICIENCY RATIOS
Debt ratio Inventory Turnover Ratio
This ratio reveals how well inventory is being managed. It is important beca
more times inventory can be turned in a given operating cycle, the greater
5; 0.23
Inventory Turnover Ratio = Net Sales / Average Inventory at Cost
5 5.5
5802298
5; 0.205460148 Gross margin
4.5 5 5.5
5; 0.456017876
813414
NET MARGIN
4.5 5 5.5
5; 1.066010076
ROA
5; 1.066010076
.69059359 ROA
4.5 5 5.5
5; 1.066010076
; 0.69059359 ROI
4.5 5 5.5
; 0.69059359
4.5 5 5.5
Year
I.T.R
D.S.O
6 7
4; 162.648941
5; 89.45666229 A.R.T
D.S.O
4; 2.24409725 5; 4.080187639
4.5 5 5.5