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RANBAXY LABORATORIES LIMITED Page |1




                  A
            Project Report
                     On
        Financial Analysis
                      Of



                Submitted to
Global Institute of Management
   Gujarat Technological University
                 On
                  10/12/2012

In Partial fulfillment of the requirements for the
    Accounting for Managers course in the
Master of Business Administration Programme

                Submitted By:

             komal Dulam (16)
             Ronak Modi (17)
             Asha Desai   (18)
             Devika Singh (19)
             Ketul Patel  (20)




                                       GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |2




                                                Preface

                  The subject matter of financial management has been changing at a rapid phase about three
decades ago; the scope of financial management was circumscribed to the raising of funds, whenever needed
and little significance use to attach to the financial decision making of problem solving the mid fifties, the
emphasis shifted to wise utilization of funds.


          The „modern‟ thinking in the financial management gives greater importance of management and
decision makes policy. Today the financial mgt is not in a passive role of a scorekeeper of the accounting
information and arranging funds.


           We as a student of management cannot keep ourselves isolated from this field of financial
management. We need to know the practical application of or other theoretical knowledge so we have
prepared a financial report on “Ranbaxy Laboratories Ltd.” and have tried to analysis each and every report
of annual report of five successive years and put it in logical format as per my analysis.




                                                                          GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |3


                                        Acknowledgement


                    We are very much thankful to Ranbaxy laboratories Ltd. for these all type of information
is taken from the last five year financial statement.



           We are also thankful to our Director Mr. Kishor Bhunsali who encourages us for studying the
finance.



        We are mostly thankful to our Prof. Dhaval Patel for helping us in our practical studies in our
sem-1 (MBA) program and also very much thankful to her valuable suggestion, guidance in preparing this
report.



           Also thankful to our parents for providing oriented and for all encouragement.




                                                                         GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |4




                                       Executive summary


        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.




                                                                          GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |5

                                            Index


Sr.No.                                    Content                                      Page no.


                                         Chapter :1
  1                                                                                       5
                                  Introduction of Company



                                        Chapter-2:
  2                                                                                      10
                  Comparative Balance sheet and Analysis of Balance Sheet




                                         Chapter-3:
  3                                                                                      15
         Comparative Profit and Loss Account and Analysis of Profit & Loss Statement



                                       Chapter-4:
  4                                                                                      19
                                  Common Size Statements


                                        Chapter 5:
  5                                                                                      23
                               Trend Analysis (Index Analysis)


                                         Chapter 6:
  6                                                                                      26
                               Analysis of Cash flow Statement


                                        Chapter 7:
  7                                                                                      27
                                       Ratio Analysis


                                        Chapter 9:
  9                                                                                      36
                     Contemporary Issues in Accounting of the company




                                                                 GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |6

       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           -      Public

       Founded        -     1961

       Headquarters- Gurgaon, Haryana, India

       Employees      -     1100 in R&D

       Website        -     www.ranbaxy.com

       For enquiries contact:

         M. Giridhar Venugopal
         Director – Global Business Development & Acquisitions
         Ranbaxy Laboratories Limited
         Plot No. 90, Sector 32,
         Gurgaon – 122001 (Haryana), India
         E-mail: business.development@ranbaxy.com



       Registered Office
       A-41, Industrial Area Phase VIII-A,
       Sahibzada Ajit Singh Nagar,
       Mohali - 160 071 (Punjab), INDIA




                                                                      GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |7

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




                                                                       GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |8

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
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.




                                                                     GLOBAL INSTITUTE OF MANAGEMENT
RANBAXY LABORATORIES LIMITED Page |9

       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                     Mr. Arun Sawhney                      Mr. Takashi Shoda
           Chairman                      CEO & Managing Director                  Non Executive &
       Non Executive &                                                         Non Independent Director
    Non Independent Director




    Dr. Kazunori Hirokawa                  Dr. Anthony H. Wild                    Mr. Rajesh V. Shah
        Non Executive &                    Independent Director                   Independent Director
    Non Independent Director




     Mr. Akihiro Watanabe                   Mr. Percy K. Shroff
      Independent Director                  Independent Director




                                                                          GLOBAL INSTITUTE OF MANAGEMENT
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

+



CHAPTER: 2 (Balance sheet 2008-2012)

             Balance Sheet of Ranbaxy Laboratories of 2007-2011
                           ------------------ in Rs. Cr. -------------------
    Particulars    Dec '11           Dec '10             Dec '09             Dec '08          Dec '07

Sources Of Funds
  Total Share
                   211.00             210.52            210.21             210.19             186.54
     Capital
 Equity Share
                   211.00             210.52            210.21             210.19             186.54
     Capital
     Share
 Application         0.67              6.60             175.85             175.66              1.18
    Money
  Preference
                     0.00              0.00               0.00              0.00               0.00
Share Capital
   Reserves        1,713.16         4,915.28           3,748.54           3,330.92           2,350.68
 Revaluation
                     0.00              0.00               0.00              0.00               0.00
   Reserves
  Net worth        1,924.83         5,132.40           4,134.60           3,716.77           2,538.40
    Secured
                   229.59             195.39            175.83             162.07             365.07
     Loans
  Unsecured
                   4,103.94         4,065.33           3,172.55           3,563.30           3,137.96
     Loans
  Total Debt       4,333.53         4,260.72           3,348.38           3,725.37           3,503.03
      Total
                   6,258.36         9,393.12           7,482.98           7,442.14           6,041.43
   Liabilities
Application Of Funds
Gross Block          3,094.07          2,857.63           2,620.92           2,386.75           2,261.48
Less: Accum.
                     1,222.07          1,145.52           1,027.52             930.07             791.96
Depreciation
Net Block            1,872.00          1,712.11           1,593.40           1,456.68           1,469.52
Capital Work
                       222.62             330.18            414.92             428.77             327.42
in Progress
Investments          3,410.79          3,804.44           3,833.69           3,618.03           3,237.55
Inventories          1,655.23          1,489.91           1,230.48           1,198.52             976.07
                                                                      GLOBAL INSTITUTE OF MANAGEMENT
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

Sundry
                3,689.95   1,292.63         1,534.65           1,024.54             882.91
Debtors
Cash and
                  66.90      22.44              25.56              49.86              69.38
Bank Balance
Total Current
                5,412.08   2,804.98         2,790.69           2,272.92           1,928.36
Assets
Loans and
                2,382.72   1,470.45         1,967.65           2,351.98             882.99
Advances
Fixed
                1,871.14   2,689.85           728.56           1,885.08             111.07
Deposits
Total CA,
Loans &         9,665.94   6,965.28         5,486.90           6,509.98           2,922.42
Advances
Deferred
                    0.00       0.00              0.00               0.00               0.00
Credit
Current
                5,157.68   2,491.08         3,082.89           3,840.11           1,177.35
Liabilities
Provisions      3,755.31    927.82            763.03             731.20             738.14
Total CL &
                8,912.99   3,418.90         3,845.92           4,571.31           1,915.49
Provisions
Net Current
                 752.95    3,546.38         1,640.98           1,938.67           1,006.93
Assets
Miscellaneous
                    0.00       0.00              0.00               0.00               0.00
Expenses
Total Assets    6,258.36   9,393.11         7,482.99           7,442.15           6,041.42




                                                        GLOBAL INSTITUTE OF MANAGEMENT
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



      Comparative Balance sheet of Ranbaxy Laboratories of 2007-2011


                          ------------------ in Rs. Cr. -------------------
                   Dec
                            Dec       Dec          Dec         %            %           %            %
 Particulars       '11-
                          '10-09    '09-08       '08-07      '11-10       '10-09      '09-08       '08-07
                    10
Sources Of Funds
 Total Share                                                0.22800 0.14747 0.00951 12.6782
                0.48       0.31      0.02        23.65
   Capital                                                     7       2       5       5
Equity Share                                                0.22800 0.14747 0.00951 12.6782
                0.48       0.31      0.02        23.65
   Capital                                                     7       2       5       5
   Share
                                                               -       -    0.10816 14786.4
 Application    -5.93 -169.25        0.19        174.48
                                                            89.8485 96.2468    3       4
   Money
 Preference
                    -       -           -           -            -            -          -            -
Share Capital
                  -
                          1166.7                               -    31.1251 12.5376 41.7002
  Reserves      3202                417.62       980.24
                            4                               65.1462    8       8       7
                 .12
 Revaluation
                    -       -           -           -            -            -          -            -
  Reserves
                  -
                                                 1178.3    -    24.1329 11.2417 46.4217
  Net worth     3207      997.8     417.83
                                                   7    62.4965    3       5       6
                 .57
                                                17.5034 11.1243 8.49015    -
Secured Loans   34.2      19.56      13.76        -203
                                                   5       8       9    55.6058
 Unsecured       38.6                           0.94973 28.1407         13.5546
                          892.78 -390.75 425.34                 -10.966
   Loans           1                               8       7               7
                 72.8                           1.70886 27.2472    -    6.34707
  Total Debt              912.34 -376.99 222.34
                   1                               6       1    10.1195    7
                   -
     Total                1910.1                 1400.7    -    25.5264 0.54876 23.1850
                 3134                40.84
  Liabilities               4                      1    33.3729    6       7       7
                  .76
Application Of Funds
                 236.
Gross Block               236.71    234.17       125.27       8.27         9.03        9.81         5.54
                  44
Less: Accum.     76.5
                          118.00     97.45       138.11       6.68        11.48       10.48        17.44
Depreciation       5
Net Block        159.     118.71    136.72       -12.84       9.34         7.45        9.39        -0.87
                                                                       GLOBAL INSTITUTE OF MANAGEMENT
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

                  89
                   -
Capital Work
                 107.   -84.74    -13.85     101.35      -32.58       -20.42       -3.23       30.95
in Progress
                  56
                   -
Investments      393.   -29.25    215.66     380.48      -10.35       -0.76        5.96        11.75
                  65
                 165.
Inventories             259.43    31.96      222.45       11.10       21.08        2.67        22.79
                  32
Sundry           2,39
                        -242.02 510.11       141.63      185.46       -15.77      49.79        16.04
Debtors          7.32
Cash and Bank    44.4
                         -3.12    -24.30     -19.52      198.13       -12.21      -48.74       -28.13
Balance            6
Total Current    2,60
                        14.29     517.77     344.56       92.95        0.51       22.78        17.87
Assets           7.10
Loans and        912.                       1,468.9
                        -497.20 -384.33                   62.04       -25.27      -16.34      166.37
Advances          27                           9
                   -               -
                        1,961.2         1,774.0                                               1,597.2
Fixed Deposits   818.           1,156.5                  -30.44      269.20       -61.35
                           9               1                                                     0
                  71               2
Total CA,                          -
                 2,70   1,478.3         3,587.5
Loans &                         1,023.0                   38.77       26.94       -15.72      122.76
                 0.66      8               6
Advances                           8
Deferred
                  -        -        -           -            -           -           -            -
Credit
Current          2,66                       2,662.7
                        -591.81 -757.22                  107.05       -19.20      -19.72      226.17
Liabilities      6.60                          6
                 2,82
Provisions              164.79    31.83       -6.94      304.75       21.60        4.35        -0.94
                 7.49
Total CL &       5,49                       2,655.8
                        -427.02 -725.39                  160.70       -11.10      -15.87      138.65
Provisions       4.09                          2
                   -
Net Current             1,905.4
                 2,79           -297.69 931.74           -78.77      116.11       -15.36       92.53
Assets                     0
                 3.43
Miscellaneous
                  -        -        -           -            -           -           -           -s
Expenses
                   -
                        1,910.1             1,400.7
 Total Assets    3,13             40.84                  -33.37       25.53        0.55        23.19
                           2                   3
                 4.75



                                                                   GLOBAL INSTITUTE OF MANAGEMENT
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

                                          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.

 The total assets also increase year which shows that company
  Purchases investments and assets every year.

 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.




                                                                       GLOBAL INSTITUTE OF MANAGEMENT
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



CHAPTER: 3 (Profit and Loss account 2007-11)

Profit and Loss Account of Ranbaxy lab.
Particulars          Dec '11     Dec '10           Dec '09            Dec '08           Dec '07
Income
Sales Turnover       7,709.17   5,687.33         4,797.49           4,676.21           4,344.39
Excise Duty             22.58      40.96            15.90              24.17              51.37
Net Sales            7,686.59   5,646.37         4,781.59           4,652.04           4,293.02
Other Income        -3,990.57     562.45           485.66          -1,587.64             551.13
Stock
                      135.72     161.43              33.96            115.59               40.66
Adjustments
Total Income        3,831.74    6,370.25         5,301.21           3,179.99           4,884.81
Expenditure
Raw Materials       2,523.08    2,181.22         1,916.58           2,049.30           1,861.17
Power & Fuel
                      194.98     132.75            109.57             108.83               90.35
Cost
Employee Cost         845.24     608.28            582.50             472.65             420.04
Other
Manufacturing         112.69      96.68              89.94              94.65              82.60
Expenses
Selling and
                    1,579.37    1,332.70         1,306.25           1,402.77           1,341.03
Admin Expenses
Miscellaneous
                    1,283.54     185.14            158.07             383.26             123.90
Expenses
Preoperative Exp
                        0.00        0.00              0.00               0.00               0.00
Capitalized
Total Expenses       6,538.90   4,536.77         4,162.91           4,511.46           3,919.09
Operating Profit     1,283.41   1,271.03           652.64             256.17             414.59
PBDIT               -2,707.16   1,833.48         1,138.30          -1,331.47             965.72
Interest                69.44      54.19            39.47             145.83              93.43
PBDT                -2,776.60   1,779.29         1,098.83          -1,477.30             872.29
Depreciation           274.08     228.35           148.20             154.47             118.73
Other Written
                        7.83        0.00              0.00               0.00               0.00
Off
Profit Before Tax   -3,058.51   1,550.94           950.63          -1,631.77             753.56
Extra-ordinary
                       15.44      21.88            111.42               17.76              35.46
items
PBT (Post Extra-
                    -3,043.07   1,572.82         1,062.05          -1,614.01             789.02
ord Items)
                                                             GLOBAL INSTITUTE OF MANAGEMENT
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

Tax                   6.69     415.48            488.86            -574.24             156.69
Reported Net
                  -3,052.05   1,148.73           571.98          -1,044.80             617.72
Profit
Total Value
                  4,015.82    2,355.55         2,246.33           2,462.16           2,057.93
Addition
Preference
                      0.00        0.00              0.00               0.00               0.00
Dividend
Equity Dividend       0.07      84.21               0.00               0.00            317.15
Corporate
                      -0.32     13.99               0.00               0.00              53.90
Dividend Tax
Shares in issue
                  4,220.00    4,210.41         4,204.17           4,203.70           3,730.71
(lakhs)
Earnings Per
                    -72.32      27.28              13.61             -24.85              16.56
Share (Rs)
Equity Dividend
                      0.03      40.00               0.00               0.00            170.00
(%)




                                                           GLOBAL INSTITUTE OF MANAGEMENT
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. 2007-2011

                                ------------------ in Rs. Cr. -------------------
Particulars         Dec       Dec          Dec             Dec             %             %         %         %
                  '11-10    '10-09       '09-08          '08-07          '11-10        '10-09    '09-08    '08-07
Income
Sales Turnover 2,021.84     889.84       121.28          331.82           35.55         18.55     2.59      7.64
Excise Duty     -18.38      25.06         -8.27          -27.20          -44.87        157.61    -34.22    -52.95
Net Sales      2,040.22     864.78       129.55          359.02           36.13         18.09     2.78      8.36
                     -                                      -
Other Income     4,553.02
                             76.79      2,073.30
                                                        2,138.77
                                                                        -809.50         15.81    -130.59   -388.07

Stock
                  -25.71    127.47       -81.63           74.93          -15.93        375.35    -70.62    184.28
Adjustments
                     -                                      -
Total Income     2,538.51
                            1,069.04    2,121.22
                                                        1,704.82
                                                                         -39.85         20.17     66.71    -34.90

Expenditure
Raw Materials 341.86        264.64       -132.72         188.13           15.67         13.81     -6.48    10.11
Power & Fuel
               62.23         23.18         0.74           18.48           46.88         21.16     0.68     20.45
Cost
Employee
               236.96        25.78       109.85           52.61           38.96         4.43      23.24    12.52
Cost
Other
Manufacturing 16.01           6.74        -4.71           12.05           16.56         7.49      -4.98    14.59
Expenses
Selling and
Admin          246.67        26.45       -96.52           61.74           18.51         2.02      -6.88     4.60
Expenses
Miscellaneous
              1,098.40       27.07       -225.19         259.36          593.28         17.13    -58.76    209.33
Expenses
Preoperative
Exp             0.00          0.00         0.00            0.00              -            -         -         -
Capitalized
Total
              2,002.13      373.86       -348.55         592.37           44.13         8.98      -7.73    15.11
Expenses
Operating
               12.38        618.39       396.47         -158.42            0.97         94.75    154.77    -38.21
Profit
                     -                                      -
PBDIT            4,540.64
                            695.18      2,469.77
                                                        2,297.19
                                                                        -247.65         61.07    -185.49   -237.87

Interest          15.25      14.72       -106.36         52.40            28.14         37.29    -72.93    56.08
                     -                                      -
PBDT             4,555.89
                            680.46      2,576.13
                                                        2,349.59
                                                                        -256.05         61.93    -174.38   -269.36

Depreciation      45.73      80.15        -6.27          35.74            20.03         54.08     -4.06    30.10
                                                                                    GLOBAL INSTITUTE OF MANAGEMENT
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

Other Written
                     7.83       0.00        0.00       0.00          -           -           -            -
Off
Profit Before          -                                 -
                               600.31     2,582.40                -297.20      63.15     -158.26     -316.54
Tax                4,609.45                          2,385.33
Extra-ordinary
                     -6.44     -89.54      93.66      -17.70      -29.43       -80.36    527.36      -49.92
items
PBT (Post
                       -                                 -
Extra-ord          4,615.89
                               510.77     2,676.06
                                                     2,403.03
                                                                  -293.48      48.09     -165.80     -304.56
Items)
Tax                -408.79     -73.38     1,063.10    -730.93     -98.39       -15.01    -185.13     -466.48
Reported Net           -                                 -
                               576.75     1,616.78                -365.69     100.83     -154.75     -269.14
Profit             4,200.78                          1,662.52
Total Value
                   1,660.27    109.22     -215.83     404.23      70.48        4.86       -8.77       19.64
Addition
Preference
                     0.00       0.00        0.00       0.00          -           -           -            -
Dividend
Equity
                    -84.14      84.21       0.00      -317.15     -99.92         -           -       -100.00
Dividend
Corporate
                    -14.31      13.99       0.00      -53.90      -102.29        -          --       -100.00
Dividend Tax
Shares in issue
                     9.59       6.24        0.47      472.99       0.23        0.15        0.01       12.68
(lakhs)
Earnings Per
                    -99.60      13.67      38.46      -41.41      -365.10     100.44     -154.77     -250.06
Share (Rs)
Equity
                    -39.97      40.00       0.00      -170.00     -99.93         -           -       -100.00
Dividend (%)

                                            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.




                                                                           GLOBAL INSTITUTE OF MANAGEMENT
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




CHAPTER:4 Common size Statement of Ranbaxy ltd.

           Balance Sheet of Ranbaxy Laboratories of 2007-2011
                           ------------------ in Rs. Cr. -------------------
 Particulars       Dec '11           Dec '10             Dec '09             Dec '08            Dec '07

Sources Of Funds
  Total Share
                   3.37149          2.241215            2.809175           2.824322            3.08768
     Capital
 Equity Share
                   3.37149          2.241215            2.809175           2.824322            3.08768
     Capital
     Share
 Application       0.010706         0.070264            2.3499996          2.360343           0.019532
    Money
  Preference
                       0                 0                   0                  0                  0
Share Capital
   Reserves        27.37394         52.32851            50.094214          44.75756           38.90933
 Revaluation
                       0                 0                   0                  0                  0
   Reserves
  Net worth        30.75614         54.63999            55.253388          49.94222           42.01654
    Secured
                   3.668533          2.08014            2.3497323          2.177734           6.042775
     Loans
  Unsecured
                   65.57533         43.27987            42.396879          47.88005           51.94068
     Loans
  Total Debt       69.24386         45.36001            44.746612          50.05778           57.98346
      Total
                     100               100                  100                100                100
   Liabilities
Application Of Funds
Gross Block        49.43899         30.42262            35.025037          32.07071           37.43292
Less: Accum.
                    19.527          12.19532            13.73141           12.49733           13.10884
Depreciation
Net Block          29.91199          18.2273            21.293627          19.57338           24.32408
Capital Work
                   3.557162          3.51513            5.5448424          5.761373           5.419587
in Progress
Investments        54.49974         40.50245            51.232061          48.61539           53.58922
Inventories        26.4483          15.86173            16.443694          16.10449           16.1563
                                                                        GLOBAL INSTITUTE OF MANAGEMENT
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

Sundry
                58.96033   13.76147          20.508513          13.76672           14.61428
Debtors
Cash and
                1.06897    0.238899          0.3415747          0.669968           1.148406
Bank Balance
Total Current
                86.47761   29.8621           37.293782          30.54117           31.91899
Assets
Loans and
                38.07259   15.65456          26.29497            31.6035            14.6156
Advances
Fixed
                29.89825   28.63642          9.7362151          25.32978           1.838475
Deposits
Total CA,
Loans &         154.4484   74.15308          73.324968          87.47445           48.37306
Advances
Deferred
                   0          0                   0                  0                  0
Credit
Current
                82.41264   26.52029          41.198639          51.59947           19.48797
Liabilities
Provisions      60.0047    9.877666          10.19686           9.825118           12.21799
Total CL &
                142.4173   36.39796          51.395498          61.42459           31.70596
Provisions
Net Current
                12.03111   37.75512          21.929469          26.04986           16.66711
Assets
Miscellaneous
                   0          0                   0                  0                  0
Expenses
Total Assets      100        100                 100                100                100




                                                             GLOBAL INSTITUTE OF MANAGEMENT
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




                    Profit and loss account (common size statement)

Particulars          Dec '11      Dec '10           Dec '09            Dec '08           Dec '07
Income
Sales Turnover      100.00      100.00          100.00             100.00              100
Excise Duty          0.29        0.72            0.33               0.52            1.182444
Net Sales            99.71       99.28           99.67              99.48           98.81756
Other Income        -51.76       9.89            10.12             -33.95           12.68602
Stock
                     1.76        2.84             0.71               2.47            0.93592
Adjustments
Total Income        49.70       112.01          110.50              68.00           112.4395
Expenditure
Raw Materials       32.73       38.35            39.95              43.82           42.84077
Power & Fuel
                     2.53        2.33             2.28               2.33           2.079694
Cost
Employee Cost       10.96       10.70            12.14              10.11           9.668561
Other
Manufacturing        1.46        1.70             1.87               2.02           1.901303
Expenses
Selling and
                    20.49       23.43            27.23              30.00           30.86809
Admin Expenses
Miscellaneous
                    16.65        3.26             3.29               8.20           2.851954
Expenses
Preoperative Exp
                     0.00        0.00             0.00               0.00                0
Capitalized
Total Expenses       84.82      79.77            86.77              96.48           90.21036
Operating Profit     16.65      22.35            13.60              5.48            9.543112
PBDIT               -35.12      32.24            23.73             -28.47           22.22913
Interest             0.90       0.95             0.82               3.12             2.15059
PBDT                -36.02      31.29            22.90             -31.59           20.07854
Depreciation         3.56       4.02             3.09               3.30             2.73295
Other Written
                     0.10        0.00             0.00               0.00                0
Off
Profit Before Tax   -39.67      27.27            19.82             -34.90           17.34559
Extra-ordinary
                     0.20        0.38             2.32               0.38           0.816225
items
PBT (Post Extra-
                    -39.47      27.65            22.14             -34.52           18.16181
rod Items)
Tax                  0.09        7.31            10.19             -12.28            3.60672
                                                              GLOBAL INSTITUTE OF MANAGEMENT
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

Reported Net
                         -39.59           20.20              11.92            -22.34            14.2188
Profit
Total Value
                         52.09            41.42              46.82             52.65           47.36983
Addition
Preference
                          0.00             0.00              0.00               0.00                0
Dividend
Equity Dividend           0.00             1.48              0.00               0.00           7.300219
Corporate
                          0.00             0.25              0.00               0.00           1.240681
Dividend Tax
Shares in issue
                         54.74            74.03              87.63             89.90            85.8742
(laths)
Earnings Per
                          -0.94            0.48              0.28              -0.53           0.381181
Share (Rs)
Equity Dividend
                          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.




                                                                         GLOBAL INSTITUTE OF MANAGEMENT
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



CHAPTER 5 (Trend analysis)

Balance sheet of Ranbaxy ltd.

particulars              2007     2008        2009        2010        2011
Sources Of Funds
   Total Share Capital     100 112.6782      112.689 112.8552 113.1125
  Equity Share Capital     100 112.6782      112.689 112.8552 113.1125
    Share Application
         Money             100 14886.44 14902.54         559.322 56.77966
    Preference Share
         Capital
        Reserves           100 141.7003 159.4662 209.1003 72.87934
  Revaluation Reserves
       Net worth           100   146.4218   162.8821    202.1904    75.82847
     Secured Loans         100   44.39423   48.16337    53.52124    62.88931
    Unsecured Loans        100   113.5547   101.1023    129.5533    130.7837
       Total Debt          100   106.3471   95.58525    121.6296     123.708
     Total Liabilities     100   123.1851   123.8611    155.4784    103.5907
Application Of Funds
Gross Block                100 105.5393      115.894 126.3611 136.8162
Less: Accum.
Depreciation               100 117.439 129.7439 144.6437 154.3096
Net Block                  100 99.12625  108.43 116.5081 127.3885
Capital Work in
Progress                   100   130.9541   126.7241     100.843    67.99218
Investments                100   111.7521   118.4133    117.5098     105.351
Inventories                100   122.7904   126.0647    152.6438    169.5811
Sundry Debtors             100   116.0413   173.8173    146.4056    417.9305
Cash and Bank Balance      100   71.86509   36.84059    32.34361    96.42548
Total Current Assets       100    117.868   144.7183    145.4594    280.6571
Loans and Advances         100   266.3654   222.8394    166.5308    269.8468
Fixed Deposits             100     1697.2   655.9467    2421.761    1684.649
Total CA, Loans &
Advances                   100 222.7599 187.7519 238.3395 330.7512
Differed Credit
Current Liabilities        100 326.1655 261.8499 211.5836 438.0753
Provisions                 100 99.0598 103.372 125.697 508.7531
Total CL & Provisions      100 238.6496   200.78 178.487 465.3112
Net Current Assets         100 192.5327 162.9686 352.1973 74.7768
Miscellaneous Expenses

Total Assets               100 123.1854 123.8614 155.4785 103.5909
Contingent Liabilities     100 125.796 129.8756 137.3781    148.01
Book Value (Rs)            100 123.8641 138.4502 179.0031 67.04896

                                                       GLOBAL INSTITUTE OF MANAGEMENT
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

                                          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           2007         2008        2009          2010          2011
         Sales Turnover        100       107.6379   110.4295      130.912       177.4511
           Excise Duty         100       47.05081   30.95192      79.73525      43.95562
            Net Sales          100       108.3629   111.3806      131.5244      179.0485
          Other Income         100       -288.07    88.12077      102.054       -724.071
              Stock
                              100        284.2843 83.52189        397.0241      333.7924
          Adjustments
          Total Income        100        65.09956 108.5244        130.4094      78.44195
          Expenditure
         Raw Materials        100        110.1082 102.9772        117.1962      135.5642
          Power & Fuel
                              100        120.4538 121.2728        146.9286      215.8052
               Cost
         Employee Cost        100        112.525    138.6773      144.8148      201.2285
              Other
         Manufacturing        100        114.5884 108.8862        117.046       136.4286
            Expenses
           Selling and
              Admin           100        104.6039 97.40647        99.37884      117.7729
            Expenses
         Miscellaneous
                              100        309.3301 127.5787        149.427       1035.948
            Expenses
          Preoperative
         Exp Capitalized
         Total Expenses       100        115.115    106.2213      115.7608      166.8474

           Operating
                              100        61.78876   157.4182       306.5752      309.5613
             Profit
             PBDIT            100        -137.873   117.8706       189.8563      -280.326
            Interest          100        156.0848   42.24553       58.00064      74.32302
             PBDT             100        -169.359   125.9707       203.9792      -318.312
          Depreciation        100        130.1019   124.821        192.3271      230.8431
         Other Written
               Off
          Profit Before
                              100        -216.541   126.1519       205.8151      -405.875
               Tax
         Extra-ordinary       100        50.0846    314.2132       61.70333      43.54202
                                                                      GLOBAL INSTITUTE OF MANAGEMENT
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

               items
            PBT (Post
            Extra-ord         100       -204.559      134.6037       199.3384      -385.677
              Items)
                 Tax          100       -366.482      311.9918       265.1605      4.269577
         Reported Net
                              100       -169.138      92.59535       185.9629      -494.083
               Profit
           Total Value
                              100       119.6426      109.1548       114.4621      195.1388
             Addition
           Preference
            Dividend
              Equity
                              100       0             0              26.5521       0.022072
             Dividend
            Corporate
                              100       0             0              25.95547      -0.59369
          Dividend Tax
         Per share data
          (annualized)
         Shares in issue
                              100       112.6783      112.6909       112.8581      113.1152
              (lakhs)
          Earnings Per
                              100       -150.06       82.18599       164.7343      -436.715
            Share (Rs)
              Equity
                              100       0             0              23.52941      0.017647
          Dividend (%)
           Book Value
                              100       123.8641      138.4502       179.0031      67.04896
                (Rs)


                                            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.




                                                                        GLOBAL INSTITUTE OF MANAGEMENT
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 6: (Cashflow Statement)

Cash Flow of Ranbaxy Laboratories                                                                  in Rs. Cr.
Particulars.                                           Dec '11   Dec '10     Dec '09       Dec '08    Dec '07
                                                                 1565.2
Net Profit Before Tax                                -3048.67               1061.92      -1619.08       774.41
                                                                       5
                                                                 1168.8
Net Cash From Operating Activities                     138.14                -665.43      -599.22       685.77
                                                                       9
                                                                       -
Net Cash (used in)/from
                                                      1094.73    2067.8        86.12      -462.91       -708.18
Investing Activities
                                                                       0
Net Cash (used in)/from Financing Activities         -1268.98    991.48      -214.14      2817.20       132.19
Net (decrease)/increase In Cash and Cash
                                                        -35.13     92.57     -793.46      1755.07       109.78
Equivalents
Opening Cash & Cash Equivalents                        161.83      69.26      862.39       172.14        62.36
Closing Cash & Cash Equivalents                        126.70     161.83       68.93      1927.21       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
     debtors or sales of goods and services.

    It shows from the last five year analysis that cash flow is in increasing and decreasing mood.




                                                                           GLOBAL INSTITUTE OF MANAGEMENT
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




                              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:-
                                   1.     Gross profit ratio.
                                   2.     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


     Liquidity ratio:-
                                   1. Current ratio
                                   2. Liquid ratio


     Leverage ratio:-
                                   1.    Debt equity ratio
                                   2.    Proprietary ratio
                                   3.    Capital gearing ratio
                                   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




                                                                      GLOBAL INSTITUTE OF MANAGEMENT
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




          Profitability ratio

    1. Gross profit ratio.= Gross profit *100
                              Sales

 Year              2007            2008                 2009                2010            2011
 Gross
 profit
                 3,094.07        2,857.63           2,620.92              2,386.75        2,261.48
 Sales           7,709.17        5,687.33           4,797.49              4,676.21        4,344.39
 Profit          40.13493        50.24555            54.63107             51.04027        52.05518
margin%



                                             Gross profit
            60
                                                54.63107
                                                               51.04027       52.05518
                                50.24555
            50
                  40.13493
            40

            30
                                                                                              Profit
            20

            10

             0
                    2007         2008            2009           2010               2011



   Interpretation: Profit is increased in 2009 because of more production. It is in 2007 is very less as
   compare to other.




                                                                       GLOBAL INSTITUTE OF MANAGEMENT
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




        2. Net profit ratio    = Net profit ×100
                                 Sales


Year           2007              2008                 2009             2010              2011
Net profit     1,872.00          1,712.11             1,593.40         1,456.68          1,469.52
Sales          7,709.17          5,687.33             4,797.49         4,676.21          4,344.39
Profit
               24.2828           30.1039              33.2132          31.1509           33.8257
margin%



                                            Net profit
        40
                                            33.2132                       33.8257
        35
                              30.1039                        31.1509
        30
               24.2828
        25

        20
                                                                                          profit
        15

        10

        5

        0
                2007           2008          2009               2010       2011


   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.




                                                                        GLOBAL INSTITUTE OF MANAGEMENT
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




    3. Operating ratio = Operating exps ×100
                         Sales



Years                 2007           2008               2009               2010                2011s
Operating exps           6,538.90       4,536.77           4,162.91           4,511.46            3,919.09
Sales                    7,709.17       5,687.33           4,797.49           4,676.21            4,344.39
Operating                  84.82          79.77              86.77              96.48              90.21
ratio%




                                            Operating ratio
             120

             100                                             96.48
                                                                          90.21
                          84.82                 86.77
                                    79.77
                 80

                 60
                                                                                         Operating ratio
                 40

                 20

                  0
                          2007      2008        2009         2010         2011




       Interpretation: In the ratio exps is 96.48% in the 2010 it decrease the profit of the company.




                                                                          GLOBAL INSTITUTE OF MANAGEMENT
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




    4. Earnings per share = Earning per share *100
                             Share holders fund

      Years           2007                 2008                 2009               2010              2011
  Earnings per
      share
                     -72.32               27.28                13.61              -24.85            16.56
      Share
  holders fund
                    1,924.83          5,132.40                4,134.60           3,716.77          2,538.40
   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                 2008                 2009              2010               2011
 E.B.I.T          -3,058.51          1,550.94                950.63           -1,631.77            753.56
 Net worth         1,924.83          5,132.40               4,134.60           3,716.77           2,538.40
 Return on
 capital                                                      22.99              43.90              29.69
                    158.90                30.22
 employs
 ratio




   6. Dividend per share = equity dividend ×100
                            Pref, share


    Years             2007                 2008                 2009               2010               2011
equity dividend       0.07                84.21                 0.00               0.00              317.15
  Pref, share        211.00               210.52               210.21             210.19             186.54
Dividend ratio        0.033                 40                    0                  0              170.017s




                                                                             GLOBAL INSTITUTE OF MANAGEMENT
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

             Liquidity ratio:-

           1. Current ratio = Current Assets
                              Current liabilities


Years                   2007               2008               2009                 2010                2011
Current assests       5,412.08           2,804.98           2,790.69             2,272.92            1,928.36
Current
liabilities          5,157.68            2,491.08          3,082.89              3,840.11            1,177.35
      Ratio             1.05                1.13               0.90                0.59                   1.64



                                             Current ratio
           1.8
                                                                          1.64
           1.6
           1.4
           1.2                    1.13
                     1.05
             1                                      0.9

           0.8                                                                            Current ratio
                                                             0.59
           0.6
           0.4
           0.2
             0
                     2007         2008          2009         2010         2011




Interpretation: ration is increased by 1.05 in the 2007 while it is 1.64 in last year so it is good for company




                                                                           GLOBAL INSTITUTE OF MANAGEMENT
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




               2. Liquid ratio = Current assests –(stock-prepared exps).
                                  Current liabilities.

Years                     2007             2008                 2009           2010            2011
Current
assests –
(stock-
prepared              5,276.36           2,643.55           2,756.73          2,157.33      1,887.70
exps).

Current
liabilities.          5,157.68           2,491.08           3,082.89          3,840.11      1,177.35

Ratio                     1.023            1.06                 0.89           0.56            1.60




                                                    Liquid ratio
                    1.8
                                                                                 1.6
                    1.6
                    1.4
                    1.2      1.023        1.06
                     1                                   0.89
                    0.8                                                                      Liqui ratio
                                                                       0.56
                    0.6
                    0.4
                    0.2
                     0
                             2007         2008           2009          2010      2011




                Interpretation: In the year 2011 it is 1.6 so reduces the liabilities.




                                                                               GLOBAL INSTITUTE OF MANAGEMENT
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

            Leverage ratio:-


         1. Debt equity ratio = Long term debt

                                    Share holders fund

Year                         2007                2008                  2009            2010               2011
Long term debt          4,333.53            4,260.72              3,348.38         3,725.37           3,503.03

Share holders
                        1,924.83            5,132.40              4,134.60         3,716.77           2,538.40
fund

Ratio                 2.25                0.83                  0.81            1.00               1.38




                                                        Debt ratio
                2.5
                             2.25

                 2


                1.5                                                                 1.38

                                                                          1                       debt ratio
                 1                        0.83           0.81


                0.5


                 0
                             2007         2008           2009            2010      2011




                       Interpretation: In the year 2007 it is 2.25 while it is1.38 in the 2011.




                                                                                GLOBAL INSTITUTE OF MANAGEMENT
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

2. Proprietary ratio= Share holders fund

                          Total assets

Years   2007                        2008              2009                   2010                2011
 Share
holders   1,924.83                    5,132.40           4,134.60              3,716.77          2,538.40
  fund
 Total
 assets   6,258.36                    9,393.11           7,482.99              7,442.15          6,041.42
 Ratio             0.31                    0.55                0.55                 0.50            0.42



                                       Proprietary ratio
   0.6                       0.55            0.55
                                                         0.5
   0.5
                                                                      0.42
   0.4
            0.31
   0.3
                                                                                      Proprietary ratio
   0.2

   0.1

     0
            2007            2008             2009       2010          2011




Interpretation: In the 2008 & 2009 it is 0.55 while it is in the 2007 by 0.31.




                                                                         GLOBAL INSTITUTE OF MANAGEMENT
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

                           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.

   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:-
               Depreciation 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.


                                                                             GLOBAL INSTITUTE OF MANAGEMENT
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

   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.


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:-
   Provision 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.

                                                                GLOBAL INSTITUTE OF MANAGEMENT
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




                                          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.




                                                                   GLOBAL INSTITUTE OF MANAGEMENT
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




                          Bibliography (References):


   www.google.com
   http://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/




                                                           GLOBAL INSTITUTE OF MANAGEMENT

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Komal dulam

  • 1. RANBAXY LABORATORIES LIMITED Page |1 A Project Report On Financial Analysis Of Submitted to Global Institute of Management Gujarat Technological University On 10/12/2012 In Partial fulfillment of the requirements for the Accounting for Managers course in the Master of Business Administration Programme Submitted By: komal Dulam (16) Ronak Modi (17) Asha Desai (18) Devika Singh (19) Ketul Patel (20) GLOBAL INSTITUTE OF MANAGEMENT
  • 2. RANBAXY LABORATORIES LIMITED Page |2 Preface The subject matter of financial management has been changing at a rapid phase about three decades ago; the scope of financial management was circumscribed to the raising of funds, whenever needed and little significance use to attach to the financial decision making of problem solving the mid fifties, the emphasis shifted to wise utilization of funds. The „modern‟ thinking in the financial management gives greater importance of management and decision makes policy. Today the financial mgt is not in a passive role of a scorekeeper of the accounting information and arranging funds. We as a student of management cannot keep ourselves isolated from this field of financial management. We need to know the practical application of or other theoretical knowledge so we have prepared a financial report on “Ranbaxy Laboratories Ltd.” and have tried to analysis each and every report of annual report of five successive years and put it in logical format as per my analysis. GLOBAL INSTITUTE OF MANAGEMENT
  • 3. RANBAXY LABORATORIES LIMITED Page |3 Acknowledgement We are very much thankful to Ranbaxy laboratories Ltd. for these all type of information is taken from the last five year financial statement. We are also thankful to our Director Mr. Kishor Bhunsali who encourages us for studying the finance. We are mostly thankful to our Prof. Dhaval Patel for helping us in our practical studies in our sem-1 (MBA) program and also very much thankful to her valuable suggestion, guidance in preparing this report. Also thankful to our parents for providing oriented and for all encouragement. GLOBAL INSTITUTE OF MANAGEMENT
  • 4. RANBAXY LABORATORIES LIMITED Page |4 Executive summary 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 5. RANBAXY LABORATORIES LIMITED Page |5 Index Sr.No. Content Page no. Chapter :1 1 5 Introduction of Company Chapter-2: 2 10 Comparative Balance sheet and Analysis of Balance Sheet Chapter-3: 3 15 Comparative Profit and Loss Account and Analysis of Profit & Loss Statement Chapter-4: 4 19 Common Size Statements Chapter 5: 5 23 Trend Analysis (Index Analysis) Chapter 6: 6 26 Analysis of Cash flow Statement Chapter 7: 7 27 Ratio Analysis Chapter 9: 9 36 Contemporary Issues in Accounting of the company GLOBAL INSTITUTE OF MANAGEMENT
  • 6. RANBAXY LABORATORIES LIMITED Page |6 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 - Public Founded - 1961 Headquarters- Gurgaon, Haryana, India Employees - 1100 in R&D Website - www.ranbaxy.com For enquiries contact: M. Giridhar Venugopal Director – Global Business Development & Acquisitions Ranbaxy Laboratories Limited Plot No. 90, Sector 32, Gurgaon – 122001 (Haryana), India E-mail: business.development@ranbaxy.com Registered Office A-41, Industrial Area Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali - 160 071 (Punjab), INDIA GLOBAL INSTITUTE OF MANAGEMENT
  • 7. RANBAXY LABORATORIES LIMITED Page |7 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 GLOBAL INSTITUTE OF MANAGEMENT
  • 8. RANBAXY LABORATORIES LIMITED Page |8 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 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 9. RANBAXY LABORATORIES LIMITED Page |9 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 Mr. Arun Sawhney Mr. Takashi Shoda Chairman CEO & Managing Director Non Executive & Non Executive & Non Independent Director Non Independent Director Dr. Kazunori Hirokawa Dr. Anthony H. Wild Mr. Rajesh V. Shah Non Executive & Independent Director Independent Director Non Independent Director Mr. Akihiro Watanabe Mr. Percy K. Shroff Independent Director Independent Director GLOBAL INSTITUTE OF MANAGEMENT
  • 10. 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 + CHAPTER: 2 (Balance sheet 2008-2012) Balance Sheet of Ranbaxy Laboratories of 2007-2011 ------------------ in Rs. Cr. ------------------- Particulars Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Sources Of Funds Total Share 211.00 210.52 210.21 210.19 186.54 Capital Equity Share 211.00 210.52 210.21 210.19 186.54 Capital Share Application 0.67 6.60 175.85 175.66 1.18 Money Preference 0.00 0.00 0.00 0.00 0.00 Share Capital Reserves 1,713.16 4,915.28 3,748.54 3,330.92 2,350.68 Revaluation 0.00 0.00 0.00 0.00 0.00 Reserves Net worth 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 Secured 229.59 195.39 175.83 162.07 365.07 Loans Unsecured 4,103.94 4,065.33 3,172.55 3,563.30 3,137.96 Loans Total Debt 4,333.53 4,260.72 3,348.38 3,725.37 3,503.03 Total 6,258.36 9,393.12 7,482.98 7,442.14 6,041.43 Liabilities Application Of Funds Gross Block 3,094.07 2,857.63 2,620.92 2,386.75 2,261.48 Less: Accum. 1,222.07 1,145.52 1,027.52 930.07 791.96 Depreciation Net Block 1,872.00 1,712.11 1,593.40 1,456.68 1,469.52 Capital Work 222.62 330.18 414.92 428.77 327.42 in Progress Investments 3,410.79 3,804.44 3,833.69 3,618.03 3,237.55 Inventories 1,655.23 1,489.91 1,230.48 1,198.52 976.07 GLOBAL INSTITUTE OF MANAGEMENT
  • 11. 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 Sundry 3,689.95 1,292.63 1,534.65 1,024.54 882.91 Debtors Cash and 66.90 22.44 25.56 49.86 69.38 Bank Balance Total Current 5,412.08 2,804.98 2,790.69 2,272.92 1,928.36 Assets Loans and 2,382.72 1,470.45 1,967.65 2,351.98 882.99 Advances Fixed 1,871.14 2,689.85 728.56 1,885.08 111.07 Deposits Total CA, Loans & 9,665.94 6,965.28 5,486.90 6,509.98 2,922.42 Advances Deferred 0.00 0.00 0.00 0.00 0.00 Credit Current 5,157.68 2,491.08 3,082.89 3,840.11 1,177.35 Liabilities Provisions 3,755.31 927.82 763.03 731.20 738.14 Total CL & 8,912.99 3,418.90 3,845.92 4,571.31 1,915.49 Provisions Net Current 752.95 3,546.38 1,640.98 1,938.67 1,006.93 Assets Miscellaneous 0.00 0.00 0.00 0.00 0.00 Expenses Total Assets 6,258.36 9,393.11 7,482.99 7,442.15 6,041.42 GLOBAL INSTITUTE OF MANAGEMENT
  • 12. 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 Comparative Balance sheet of Ranbaxy Laboratories of 2007-2011 ------------------ in Rs. Cr. ------------------- Dec Dec Dec Dec % % % % Particulars '11- '10-09 '09-08 '08-07 '11-10 '10-09 '09-08 '08-07 10 Sources Of Funds Total Share 0.22800 0.14747 0.00951 12.6782 0.48 0.31 0.02 23.65 Capital 7 2 5 5 Equity Share 0.22800 0.14747 0.00951 12.6782 0.48 0.31 0.02 23.65 Capital 7 2 5 5 Share - - 0.10816 14786.4 Application -5.93 -169.25 0.19 174.48 89.8485 96.2468 3 4 Money Preference - - - - - - - - Share Capital - 1166.7 - 31.1251 12.5376 41.7002 Reserves 3202 417.62 980.24 4 65.1462 8 8 7 .12 Revaluation - - - - - - - - Reserves - 1178.3 - 24.1329 11.2417 46.4217 Net worth 3207 997.8 417.83 7 62.4965 3 5 6 .57 17.5034 11.1243 8.49015 - Secured Loans 34.2 19.56 13.76 -203 5 8 9 55.6058 Unsecured 38.6 0.94973 28.1407 13.5546 892.78 -390.75 425.34 -10.966 Loans 1 8 7 7 72.8 1.70886 27.2472 - 6.34707 Total Debt 912.34 -376.99 222.34 1 6 1 10.1195 7 - Total 1910.1 1400.7 - 25.5264 0.54876 23.1850 3134 40.84 Liabilities 4 1 33.3729 6 7 7 .76 Application Of Funds 236. Gross Block 236.71 234.17 125.27 8.27 9.03 9.81 5.54 44 Less: Accum. 76.5 118.00 97.45 138.11 6.68 11.48 10.48 17.44 Depreciation 5 Net Block 159. 118.71 136.72 -12.84 9.34 7.45 9.39 -0.87 GLOBAL INSTITUTE OF MANAGEMENT
  • 13. 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 89 - Capital Work 107. -84.74 -13.85 101.35 -32.58 -20.42 -3.23 30.95 in Progress 56 - Investments 393. -29.25 215.66 380.48 -10.35 -0.76 5.96 11.75 65 165. Inventories 259.43 31.96 222.45 11.10 21.08 2.67 22.79 32 Sundry 2,39 -242.02 510.11 141.63 185.46 -15.77 49.79 16.04 Debtors 7.32 Cash and Bank 44.4 -3.12 -24.30 -19.52 198.13 -12.21 -48.74 -28.13 Balance 6 Total Current 2,60 14.29 517.77 344.56 92.95 0.51 22.78 17.87 Assets 7.10 Loans and 912. 1,468.9 -497.20 -384.33 62.04 -25.27 -16.34 166.37 Advances 27 9 - - 1,961.2 1,774.0 1,597.2 Fixed Deposits 818. 1,156.5 -30.44 269.20 -61.35 9 1 0 71 2 Total CA, - 2,70 1,478.3 3,587.5 Loans & 1,023.0 38.77 26.94 -15.72 122.76 0.66 8 6 Advances 8 Deferred - - - - - - - - Credit Current 2,66 2,662.7 -591.81 -757.22 107.05 -19.20 -19.72 226.17 Liabilities 6.60 6 2,82 Provisions 164.79 31.83 -6.94 304.75 21.60 4.35 -0.94 7.49 Total CL & 5,49 2,655.8 -427.02 -725.39 160.70 -11.10 -15.87 138.65 Provisions 4.09 2 - Net Current 1,905.4 2,79 -297.69 931.74 -78.77 116.11 -15.36 92.53 Assets 0 3.43 Miscellaneous - - - - - - - -s Expenses - 1,910.1 1,400.7 Total Assets 3,13 40.84 -33.37 25.53 0.55 23.19 2 3 4.75 GLOBAL INSTITUTE OF MANAGEMENT
  • 14. 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 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.  The total assets also increase year which shows that company Purchases investments and assets every year.  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. GLOBAL INSTITUTE OF MANAGEMENT
  • 15. 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 CHAPTER: 3 (Profit and Loss account 2007-11) Profit and Loss Account of Ranbaxy lab. Particulars Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Income Sales Turnover 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39 Excise Duty 22.58 40.96 15.90 24.17 51.37 Net Sales 7,686.59 5,646.37 4,781.59 4,652.04 4,293.02 Other Income -3,990.57 562.45 485.66 -1,587.64 551.13 Stock 135.72 161.43 33.96 115.59 40.66 Adjustments Total Income 3,831.74 6,370.25 5,301.21 3,179.99 4,884.81 Expenditure Raw Materials 2,523.08 2,181.22 1,916.58 2,049.30 1,861.17 Power & Fuel 194.98 132.75 109.57 108.83 90.35 Cost Employee Cost 845.24 608.28 582.50 472.65 420.04 Other Manufacturing 112.69 96.68 89.94 94.65 82.60 Expenses Selling and 1,579.37 1,332.70 1,306.25 1,402.77 1,341.03 Admin Expenses Miscellaneous 1,283.54 185.14 158.07 383.26 123.90 Expenses Preoperative Exp 0.00 0.00 0.00 0.00 0.00 Capitalized Total Expenses 6,538.90 4,536.77 4,162.91 4,511.46 3,919.09 Operating Profit 1,283.41 1,271.03 652.64 256.17 414.59 PBDIT -2,707.16 1,833.48 1,138.30 -1,331.47 965.72 Interest 69.44 54.19 39.47 145.83 93.43 PBDT -2,776.60 1,779.29 1,098.83 -1,477.30 872.29 Depreciation 274.08 228.35 148.20 154.47 118.73 Other Written 7.83 0.00 0.00 0.00 0.00 Off Profit Before Tax -3,058.51 1,550.94 950.63 -1,631.77 753.56 Extra-ordinary 15.44 21.88 111.42 17.76 35.46 items PBT (Post Extra- -3,043.07 1,572.82 1,062.05 -1,614.01 789.02 ord Items) GLOBAL INSTITUTE OF MANAGEMENT
  • 16. 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 Tax 6.69 415.48 488.86 -574.24 156.69 Reported Net -3,052.05 1,148.73 571.98 -1,044.80 617.72 Profit Total Value 4,015.82 2,355.55 2,246.33 2,462.16 2,057.93 Addition Preference 0.00 0.00 0.00 0.00 0.00 Dividend Equity Dividend 0.07 84.21 0.00 0.00 317.15 Corporate -0.32 13.99 0.00 0.00 53.90 Dividend Tax Shares in issue 4,220.00 4,210.41 4,204.17 4,203.70 3,730.71 (lakhs) Earnings Per -72.32 27.28 13.61 -24.85 16.56 Share (Rs) Equity Dividend 0.03 40.00 0.00 0.00 170.00 (%) GLOBAL INSTITUTE OF MANAGEMENT
  • 17. 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. 2007-2011 ------------------ in Rs. Cr. ------------------- Particulars Dec Dec Dec Dec % % % % '11-10 '10-09 '09-08 '08-07 '11-10 '10-09 '09-08 '08-07 Income Sales Turnover 2,021.84 889.84 121.28 331.82 35.55 18.55 2.59 7.64 Excise Duty -18.38 25.06 -8.27 -27.20 -44.87 157.61 -34.22 -52.95 Net Sales 2,040.22 864.78 129.55 359.02 36.13 18.09 2.78 8.36 - - Other Income 4,553.02 76.79 2,073.30 2,138.77 -809.50 15.81 -130.59 -388.07 Stock -25.71 127.47 -81.63 74.93 -15.93 375.35 -70.62 184.28 Adjustments - - Total Income 2,538.51 1,069.04 2,121.22 1,704.82 -39.85 20.17 66.71 -34.90 Expenditure Raw Materials 341.86 264.64 -132.72 188.13 15.67 13.81 -6.48 10.11 Power & Fuel 62.23 23.18 0.74 18.48 46.88 21.16 0.68 20.45 Cost Employee 236.96 25.78 109.85 52.61 38.96 4.43 23.24 12.52 Cost Other Manufacturing 16.01 6.74 -4.71 12.05 16.56 7.49 -4.98 14.59 Expenses Selling and Admin 246.67 26.45 -96.52 61.74 18.51 2.02 -6.88 4.60 Expenses Miscellaneous 1,098.40 27.07 -225.19 259.36 593.28 17.13 -58.76 209.33 Expenses Preoperative Exp 0.00 0.00 0.00 0.00 - - - - Capitalized Total 2,002.13 373.86 -348.55 592.37 44.13 8.98 -7.73 15.11 Expenses Operating 12.38 618.39 396.47 -158.42 0.97 94.75 154.77 -38.21 Profit - - PBDIT 4,540.64 695.18 2,469.77 2,297.19 -247.65 61.07 -185.49 -237.87 Interest 15.25 14.72 -106.36 52.40 28.14 37.29 -72.93 56.08 - - PBDT 4,555.89 680.46 2,576.13 2,349.59 -256.05 61.93 -174.38 -269.36 Depreciation 45.73 80.15 -6.27 35.74 20.03 54.08 -4.06 30.10 GLOBAL INSTITUTE OF MANAGEMENT
  • 18. 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 Other Written 7.83 0.00 0.00 0.00 - - - - Off Profit Before - - 600.31 2,582.40 -297.20 63.15 -158.26 -316.54 Tax 4,609.45 2,385.33 Extra-ordinary -6.44 -89.54 93.66 -17.70 -29.43 -80.36 527.36 -49.92 items PBT (Post - - Extra-ord 4,615.89 510.77 2,676.06 2,403.03 -293.48 48.09 -165.80 -304.56 Items) Tax -408.79 -73.38 1,063.10 -730.93 -98.39 -15.01 -185.13 -466.48 Reported Net - - 576.75 1,616.78 -365.69 100.83 -154.75 -269.14 Profit 4,200.78 1,662.52 Total Value 1,660.27 109.22 -215.83 404.23 70.48 4.86 -8.77 19.64 Addition Preference 0.00 0.00 0.00 0.00 - - - - Dividend Equity -84.14 84.21 0.00 -317.15 -99.92 - - -100.00 Dividend Corporate -14.31 13.99 0.00 -53.90 -102.29 - -- -100.00 Dividend Tax Shares in issue 9.59 6.24 0.47 472.99 0.23 0.15 0.01 12.68 (lakhs) Earnings Per -99.60 13.67 38.46 -41.41 -365.10 100.44 -154.77 -250.06 Share (Rs) Equity -39.97 40.00 0.00 -170.00 -99.93 - - -100.00 Dividend (%) 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 19. 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 CHAPTER:4 Common size Statement of Ranbaxy ltd. Balance Sheet of Ranbaxy Laboratories of 2007-2011 ------------------ in Rs. Cr. ------------------- Particulars Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Sources Of Funds Total Share 3.37149 2.241215 2.809175 2.824322 3.08768 Capital Equity Share 3.37149 2.241215 2.809175 2.824322 3.08768 Capital Share Application 0.010706 0.070264 2.3499996 2.360343 0.019532 Money Preference 0 0 0 0 0 Share Capital Reserves 27.37394 52.32851 50.094214 44.75756 38.90933 Revaluation 0 0 0 0 0 Reserves Net worth 30.75614 54.63999 55.253388 49.94222 42.01654 Secured 3.668533 2.08014 2.3497323 2.177734 6.042775 Loans Unsecured 65.57533 43.27987 42.396879 47.88005 51.94068 Loans Total Debt 69.24386 45.36001 44.746612 50.05778 57.98346 Total 100 100 100 100 100 Liabilities Application Of Funds Gross Block 49.43899 30.42262 35.025037 32.07071 37.43292 Less: Accum. 19.527 12.19532 13.73141 12.49733 13.10884 Depreciation Net Block 29.91199 18.2273 21.293627 19.57338 24.32408 Capital Work 3.557162 3.51513 5.5448424 5.761373 5.419587 in Progress Investments 54.49974 40.50245 51.232061 48.61539 53.58922 Inventories 26.4483 15.86173 16.443694 16.10449 16.1563 GLOBAL INSTITUTE OF MANAGEMENT
  • 20. 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 Sundry 58.96033 13.76147 20.508513 13.76672 14.61428 Debtors Cash and 1.06897 0.238899 0.3415747 0.669968 1.148406 Bank Balance Total Current 86.47761 29.8621 37.293782 30.54117 31.91899 Assets Loans and 38.07259 15.65456 26.29497 31.6035 14.6156 Advances Fixed 29.89825 28.63642 9.7362151 25.32978 1.838475 Deposits Total CA, Loans & 154.4484 74.15308 73.324968 87.47445 48.37306 Advances Deferred 0 0 0 0 0 Credit Current 82.41264 26.52029 41.198639 51.59947 19.48797 Liabilities Provisions 60.0047 9.877666 10.19686 9.825118 12.21799 Total CL & 142.4173 36.39796 51.395498 61.42459 31.70596 Provisions Net Current 12.03111 37.75512 21.929469 26.04986 16.66711 Assets Miscellaneous 0 0 0 0 0 Expenses Total Assets 100 100 100 100 100 GLOBAL INSTITUTE OF MANAGEMENT
  • 21. 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 Profit and loss account (common size statement) Particulars Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 Income Sales Turnover 100.00 100.00 100.00 100.00 100 Excise Duty 0.29 0.72 0.33 0.52 1.182444 Net Sales 99.71 99.28 99.67 99.48 98.81756 Other Income -51.76 9.89 10.12 -33.95 12.68602 Stock 1.76 2.84 0.71 2.47 0.93592 Adjustments Total Income 49.70 112.01 110.50 68.00 112.4395 Expenditure Raw Materials 32.73 38.35 39.95 43.82 42.84077 Power & Fuel 2.53 2.33 2.28 2.33 2.079694 Cost Employee Cost 10.96 10.70 12.14 10.11 9.668561 Other Manufacturing 1.46 1.70 1.87 2.02 1.901303 Expenses Selling and 20.49 23.43 27.23 30.00 30.86809 Admin Expenses Miscellaneous 16.65 3.26 3.29 8.20 2.851954 Expenses Preoperative Exp 0.00 0.00 0.00 0.00 0 Capitalized Total Expenses 84.82 79.77 86.77 96.48 90.21036 Operating Profit 16.65 22.35 13.60 5.48 9.543112 PBDIT -35.12 32.24 23.73 -28.47 22.22913 Interest 0.90 0.95 0.82 3.12 2.15059 PBDT -36.02 31.29 22.90 -31.59 20.07854 Depreciation 3.56 4.02 3.09 3.30 2.73295 Other Written 0.10 0.00 0.00 0.00 0 Off Profit Before Tax -39.67 27.27 19.82 -34.90 17.34559 Extra-ordinary 0.20 0.38 2.32 0.38 0.816225 items PBT (Post Extra- -39.47 27.65 22.14 -34.52 18.16181 rod Items) Tax 0.09 7.31 10.19 -12.28 3.60672 GLOBAL INSTITUTE OF MANAGEMENT
  • 22. 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 Reported Net -39.59 20.20 11.92 -22.34 14.2188 Profit Total Value 52.09 41.42 46.82 52.65 47.36983 Addition Preference 0.00 0.00 0.00 0.00 0 Dividend Equity Dividend 0.00 1.48 0.00 0.00 7.300219 Corporate 0.00 0.25 0.00 0.00 1.240681 Dividend Tax Shares in issue 54.74 74.03 87.63 89.90 85.8742 (laths) Earnings Per -0.94 0.48 0.28 -0.53 0.381181 Share (Rs) Equity Dividend 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 23. 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 CHAPTER 5 (Trend analysis) Balance sheet of Ranbaxy ltd. particulars 2007 2008 2009 2010 2011 Sources Of Funds Total Share Capital 100 112.6782 112.689 112.8552 113.1125 Equity Share Capital 100 112.6782 112.689 112.8552 113.1125 Share Application Money 100 14886.44 14902.54 559.322 56.77966 Preference Share Capital Reserves 100 141.7003 159.4662 209.1003 72.87934 Revaluation Reserves Net worth 100 146.4218 162.8821 202.1904 75.82847 Secured Loans 100 44.39423 48.16337 53.52124 62.88931 Unsecured Loans 100 113.5547 101.1023 129.5533 130.7837 Total Debt 100 106.3471 95.58525 121.6296 123.708 Total Liabilities 100 123.1851 123.8611 155.4784 103.5907 Application Of Funds Gross Block 100 105.5393 115.894 126.3611 136.8162 Less: Accum. Depreciation 100 117.439 129.7439 144.6437 154.3096 Net Block 100 99.12625 108.43 116.5081 127.3885 Capital Work in Progress 100 130.9541 126.7241 100.843 67.99218 Investments 100 111.7521 118.4133 117.5098 105.351 Inventories 100 122.7904 126.0647 152.6438 169.5811 Sundry Debtors 100 116.0413 173.8173 146.4056 417.9305 Cash and Bank Balance 100 71.86509 36.84059 32.34361 96.42548 Total Current Assets 100 117.868 144.7183 145.4594 280.6571 Loans and Advances 100 266.3654 222.8394 166.5308 269.8468 Fixed Deposits 100 1697.2 655.9467 2421.761 1684.649 Total CA, Loans & Advances 100 222.7599 187.7519 238.3395 330.7512 Differed Credit Current Liabilities 100 326.1655 261.8499 211.5836 438.0753 Provisions 100 99.0598 103.372 125.697 508.7531 Total CL & Provisions 100 238.6496 200.78 178.487 465.3112 Net Current Assets 100 192.5327 162.9686 352.1973 74.7768 Miscellaneous Expenses Total Assets 100 123.1854 123.8614 155.4785 103.5909 Contingent Liabilities 100 125.796 129.8756 137.3781 148.01 Book Value (Rs) 100 123.8641 138.4502 179.0031 67.04896 GLOBAL INSTITUTE OF MANAGEMENT
  • 24. 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 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 2007 2008 2009 2010 2011 Sales Turnover 100 107.6379 110.4295 130.912 177.4511 Excise Duty 100 47.05081 30.95192 79.73525 43.95562 Net Sales 100 108.3629 111.3806 131.5244 179.0485 Other Income 100 -288.07 88.12077 102.054 -724.071 Stock 100 284.2843 83.52189 397.0241 333.7924 Adjustments Total Income 100 65.09956 108.5244 130.4094 78.44195 Expenditure Raw Materials 100 110.1082 102.9772 117.1962 135.5642 Power & Fuel 100 120.4538 121.2728 146.9286 215.8052 Cost Employee Cost 100 112.525 138.6773 144.8148 201.2285 Other Manufacturing 100 114.5884 108.8862 117.046 136.4286 Expenses Selling and Admin 100 104.6039 97.40647 99.37884 117.7729 Expenses Miscellaneous 100 309.3301 127.5787 149.427 1035.948 Expenses Preoperative Exp Capitalized Total Expenses 100 115.115 106.2213 115.7608 166.8474 Operating 100 61.78876 157.4182 306.5752 309.5613 Profit PBDIT 100 -137.873 117.8706 189.8563 -280.326 Interest 100 156.0848 42.24553 58.00064 74.32302 PBDT 100 -169.359 125.9707 203.9792 -318.312 Depreciation 100 130.1019 124.821 192.3271 230.8431 Other Written Off Profit Before 100 -216.541 126.1519 205.8151 -405.875 Tax Extra-ordinary 100 50.0846 314.2132 61.70333 43.54202 GLOBAL INSTITUTE OF MANAGEMENT
  • 25. 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 items PBT (Post Extra-ord 100 -204.559 134.6037 199.3384 -385.677 Items) Tax 100 -366.482 311.9918 265.1605 4.269577 Reported Net 100 -169.138 92.59535 185.9629 -494.083 Profit Total Value 100 119.6426 109.1548 114.4621 195.1388 Addition Preference Dividend Equity 100 0 0 26.5521 0.022072 Dividend Corporate 100 0 0 25.95547 -0.59369 Dividend Tax Per share data (annualized) Shares in issue 100 112.6783 112.6909 112.8581 113.1152 (lakhs) Earnings Per 100 -150.06 82.18599 164.7343 -436.715 Share (Rs) Equity 100 0 0 23.52941 0.017647 Dividend (%) Book Value 100 123.8641 138.4502 179.0031 67.04896 (Rs) 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 26. 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 6: (Cashflow Statement) Cash Flow of Ranbaxy Laboratories in Rs. Cr. Particulars. Dec '11 Dec '10 Dec '09 Dec '08 Dec '07 1565.2 Net Profit Before Tax -3048.67 1061.92 -1619.08 774.41 5 1168.8 Net Cash From Operating Activities 138.14 -665.43 -599.22 685.77 9 - Net Cash (used in)/from 1094.73 2067.8 86.12 -462.91 -708.18 Investing Activities 0 Net Cash (used in)/from Financing Activities -1268.98 991.48 -214.14 2817.20 132.19 Net (decrease)/increase In Cash and Cash -35.13 92.57 -793.46 1755.07 109.78 Equivalents Opening Cash & Cash Equivalents 161.83 69.26 862.39 172.14 62.36 Closing Cash & Cash Equivalents 126.70 161.83 68.93 1927.21 172.14 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 debtors or sales of goods and services.  It shows from the last five year analysis that cash flow is in increasing and decreasing mood. GLOBAL INSTITUTE OF MANAGEMENT
  • 27. 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 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:- 1. Gross profit ratio. 2. 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 Liquidity ratio:- 1. Current ratio 2. Liquid ratio Leverage ratio:- 1. Debt equity ratio 2. Proprietary ratio 3. Capital gearing ratio 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 GLOBAL INSTITUTE OF MANAGEMENT
  • 28. 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 Profitability ratio 1. Gross profit ratio.= Gross profit *100 Sales Year 2007 2008 2009 2010 2011 Gross profit 3,094.07 2,857.63 2,620.92 2,386.75 2,261.48 Sales 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39 Profit 40.13493 50.24555 54.63107 51.04027 52.05518 margin% Gross profit 60 54.63107 51.04027 52.05518 50.24555 50 40.13493 40 30 Profit 20 10 0 2007 2008 2009 2010 2011 Interpretation: Profit is increased in 2009 because of more production. It is in 2007 is very less as compare to other. GLOBAL INSTITUTE OF MANAGEMENT
  • 29. 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 2. Net profit ratio = Net profit ×100 Sales Year 2007 2008 2009 2010 2011 Net profit 1,872.00 1,712.11 1,593.40 1,456.68 1,469.52 Sales 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39 Profit 24.2828 30.1039 33.2132 31.1509 33.8257 margin% Net profit 40 33.2132 33.8257 35 30.1039 31.1509 30 24.2828 25 20 profit 15 10 5 0 2007 2008 2009 2010 2011 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 30. 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 3. Operating ratio = Operating exps ×100 Sales Years 2007 2008 2009 2010 2011s Operating exps 6,538.90 4,536.77 4,162.91 4,511.46 3,919.09 Sales 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39 Operating 84.82 79.77 86.77 96.48 90.21 ratio% Operating ratio 120 100 96.48 90.21 84.82 86.77 79.77 80 60 Operating ratio 40 20 0 2007 2008 2009 2010 2011 Interpretation: In the ratio exps is 96.48% in the 2010 it decrease the profit of the company. GLOBAL INSTITUTE OF MANAGEMENT
  • 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 | 31 4. Earnings per share = Earning per share *100 Share holders fund Years 2007 2008 2009 2010 2011 Earnings per share -72.32 27.28 13.61 -24.85 16.56 Share holders fund 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 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 2008 2009 2010 2011 E.B.I.T -3,058.51 1,550.94 950.63 -1,631.77 753.56 Net worth 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 Return on capital 22.99 43.90 29.69 158.90 30.22 employs ratio 6. Dividend per share = equity dividend ×100 Pref, share Years 2007 2008 2009 2010 2011 equity dividend 0.07 84.21 0.00 0.00 317.15 Pref, share 211.00 210.52 210.21 210.19 186.54 Dividend ratio 0.033 40 0 0 170.017s GLOBAL INSTITUTE OF MANAGEMENT
  • 32. 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 Liquidity ratio:- 1. Current ratio = Current Assets Current liabilities Years 2007 2008 2009 2010 2011 Current assests 5,412.08 2,804.98 2,790.69 2,272.92 1,928.36 Current liabilities 5,157.68 2,491.08 3,082.89 3,840.11 1,177.35 Ratio 1.05 1.13 0.90 0.59 1.64 Current ratio 1.8 1.64 1.6 1.4 1.2 1.13 1.05 1 0.9 0.8 Current ratio 0.59 0.6 0.4 0.2 0 2007 2008 2009 2010 2011 Interpretation: ration is increased by 1.05 in the 2007 while it is 1.64 in last year so it is good for company GLOBAL INSTITUTE OF MANAGEMENT
  • 33. 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 2. Liquid ratio = Current assests –(stock-prepared exps). Current liabilities. Years 2007 2008 2009 2010 2011 Current assests – (stock- prepared 5,276.36 2,643.55 2,756.73 2,157.33 1,887.70 exps). Current liabilities. 5,157.68 2,491.08 3,082.89 3,840.11 1,177.35 Ratio 1.023 1.06 0.89 0.56 1.60 Liquid ratio 1.8 1.6 1.6 1.4 1.2 1.023 1.06 1 0.89 0.8 Liqui ratio 0.56 0.6 0.4 0.2 0 2007 2008 2009 2010 2011 Interpretation: In the year 2011 it is 1.6 so reduces the liabilities. GLOBAL INSTITUTE OF MANAGEMENT
  • 34. 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 Leverage ratio:- 1. Debt equity ratio = Long term debt Share holders fund Year 2007 2008 2009 2010 2011 Long term debt 4,333.53 4,260.72 3,348.38 3,725.37 3,503.03 Share holders 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 fund Ratio 2.25 0.83 0.81 1.00 1.38 Debt ratio 2.5 2.25 2 1.5 1.38 1 debt ratio 1 0.83 0.81 0.5 0 2007 2008 2009 2010 2011 Interpretation: In the year 2007 it is 2.25 while it is1.38 in the 2011. GLOBAL INSTITUTE OF MANAGEMENT
  • 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 | 35 2. Proprietary ratio= Share holders fund Total assets Years 2007 2008 2009 2010 2011 Share holders 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 fund Total assets 6,258.36 9,393.11 7,482.99 7,442.15 6,041.42 Ratio 0.31 0.55 0.55 0.50 0.42 Proprietary ratio 0.6 0.55 0.55 0.5 0.5 0.42 0.4 0.31 0.3 Proprietary ratio 0.2 0.1 0 2007 2008 2009 2010 2011 Interpretation: In the 2008 & 2009 it is 0.55 while it is in the 2007 by 0.31. GLOBAL INSTITUTE OF MANAGEMENT
  • 36. 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 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. 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:- Depreciation 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 37. 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 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. 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:- Provision 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 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 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. GLOBAL INSTITUTE OF MANAGEMENT
  • 39. 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 Bibliography (References):  www.google.com  http://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/ GLOBAL INSTITUTE OF MANAGEMENT