THE VARIATIONS IN

PERFORMANCE, ASSETS &

LIABILITIES, FLOW OF CASH
& EPS
UNDER THE GUIDANCE OF
DR.UMESH SOLANKI
MANAGERIAL ACCOUNTING
(MB2104)

SUBMITTED BY-
ABHINAV PARIHAR
180701016
 TAPMI SCHOOL OF BUSINESS
JAIPUR
ACKNOWLEDGEMENT

I would like to express my sincere gratitude to my

supervisors Dr.Umesh Solanki for providing their
valuable guidance, comments and suggestions
throughout the course of the project. I would specially
thank for constantly motivating me to work harder.

ABHINAV PARIHAR
(180701016)
 INDEX

Sr. No. Particulars Page No.

INTRODUCTION
 About the Industry
  India’s pharmaceutical market rank 3rd in the world in terms of volume and 11 th in terms
of value. At US$ 17.4 billion, the market in India accounted for 1.6% share of the global
market in 2016. It is expected to grow at a CAGR of 10-13% to US$ 26-30 Billion by 2021.
 The country also has a large pool of scientists and engineers who have the potential to
steer the industry ahead to an even higher level.
 Presently over 80% of the antiretroviral drugs used globally to combat AIDS (acquired
immune deficiency syndrome) are supplied by Indian pharmaceutical firm.
 The union backed Medicines Patent Pool has signed six sub-licences with Aurobindo,
Cipla, Desano, Emcure, Hetero Labs and Laurus Labs, allowing them to make generic
anti-AIDS medicine
 Tenofovir Alafernamide (TAF) for 112 developing countries.

 About the company

 Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapi, Gujarat with
five products to treat psychiatry ailments.
 Cardiology products were introduced in 1987 followed by gastroenterology products in
1989. Today, it is the largest chronic prescription company in India and a market leader
in psychiatry, neurology, cardiology, orthopedics, ophthalmology, gastroenterology
and nephrology.
 Over 72% of Sun Pharma sales are from markets outside India, primarily in United
States. US is the single largest market, accounting for about 50% turnover; in all,
formulations or finished dosage forms, account for 93% of the turnover.
 Today Sun Pharma is the second largest and the most profitable pharmaceutical
company in India, as well as the largest pharmaceutical company by market
capitalization on the Indian exchanges.

 About the Project

 The main objective behind this project is to calculate the financial procedures
 To calculate the profitability, liquidity & turnover ratios to conclude whether the Sun
pharma holds a good position in terms of assets & cash flows.
 To calculate liquidity ratios to know the operating cycle of Sun pharma.
 The ratio of net operating as well as non-operating expense in the total value.

BALANCE SHEET
Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar-
Equity Share Capital 09 10 11 12 13 14 15 16 17 18
 103. 103. 103. 103. 103. 207. 207.1 240.6 239.9 239.9
Total Share Capital 56 56 56 56 56 12 2 6 3 3
103. 103. 103. 103. 103. 207. 207.1 240.6 239.9 239.9
Reserves and Surplus 56 56 56 56 56 12 2 6 3 3
5047 5614 6576 7774 7685 7200 22530 21242 20772 19530
Total Reserves and Surplus .86 .42 .97 .56 .32 .76 .77 .43 .54 .17
5047 5614 6576 7774 7685 7200 22530 21242 20772 19530
Total Shareholders’ Funds .86 .42 .97 .56 .32 .76 .77 .43 .54 .17
5151 5717 6680 7878 7788 7407 22737 21483 21012 19770
NON-CURRENT LIABILITIES .42 .98 .53 .12 .88 .88 .89 .09 .47 .1
Long Term Borrowings                    
1170. 1929. 760.6 1564.
Deferred Tax Liabilities [Net] 0 0 0 0 4.64 4.64 32 27 4 69
123. 125. 128. 133. 165. 192.
Other Long Term Liabilities 25 15 51 91 41 84 0 0 0 0
Long Term Provisions 0 0 2.19 2.03 1.01 1.38 14.37 13.57 0.68 0.91
98.6 131. 2524 2422. 1924. 1132. 345.1
Total Non-Current Liabilities 0 0 8.68 2 49 .19 51 55 83 8
123. 125. 139. 234. 302. 2723 3607. 3867. 1894. 1910.
CURRENT LIABILITIES 25 15 38 56 55 .05 2 39 15 78
Short Term Borrowings                    
29.4 50.5 38.4 2404 4252. 3733. 4054. 5213.
Trade Payables 23.6 9 3 40.3 9 .37 81 72 04 81
477. 148. 269. 400. 363. 380. 1485. 1772. 2072. 2489.
Other Current Liabilities 79 25 66 19 27 06 03 44 6 94
115. 42.0 62.5 145. 233. 3247. 1906. 2988. 2114.
Short Term Provisions 95.3 05 8 4 15 61 55 83 58 25
342. 342. 424. 515. 608. 688. 2066. 1425. 1847. 2425.
Total Current Liabilities 1 48 42 49 15 03 69 79 43 49
938. 635. 786. 1018 1155 3706 11052 8838. 10962 12243
Total Capital And Liabilities 79 27 69 .52 .06 .07 .08 78 .65 .49
6213 6478 7606 9131 9246 1383 37445 34189 33869 33924
ASSETS .46 .4 .6 .2 .49 7 .55 .93 .27 .37
NON-CURRENT ASSETS                    
654. 696. 783. 975. 1134 1257 3115. 3512. 3869. 4375.
Intangible Assets 8 06 18 93 .76 .56 29 9 35 65
44.4 44.4 11.2 169.2 182.8
Capital Work-In-Progress 6 6 1 1.37 1.03 9.61 69.98 55.27 8 8
75.9 92.1 195. 248. 348. 480. 1086. 767.7 1055. 830.3
Fixed Assets 5 5 65 87 04 46 32 3 11 9
775. 832. 990. 1226 1483 1747 4275. 4335. 5139. 5432.
Non-Current Investments 21 67 04 .17 .83 .63 86 9 13 66
2694 3951 1778 3592 3376 6155 25782 22283 19293 18310
Deferred Tax Assets [Net] .59 .69 .59 .8 .49 .73 .23 .11 .29 .5
749.0
Long Term Loans And Advances 5.83 9.82 0 0 0 0 0 0 6 751.7
143. 338. 491. 761. 1895. 2165.
Other Non-Current Assets 0 0 89 54 09 49 23 47 4.87 3.42
2294. 2518.
Total Non-Current Assets 0 0 0.19 2.83 7.83 0.11 41.95 61.75 73 57
3475 4794 2912 5160 5359 8664 31995 28846 27481 27016
CURRENT ASSETS .63 .18 .71 .34 .24 .96 .27 .23 .08 .85
Current Investments                    
1822 844. 941.
Inventories 0 0 .83 98 05 860 93.93 82.49 40.01 44.76
Trade Receivables 486. 570. 618. 640. 868. 918. 2189. 2132. 2308. 2135.
 74 14 26 07 76 38 25 16 28 64
680. 553. 542. 713. 737. 452. 1802. 2016. 2714. 2846.
Cash And Cash Equivalents 03 29 62 48 53 75 82 81 7 96
1265 187. 1250 1327 431. 141. 416.4 169.3 170.2 155.2
Short Term Loans And Advances .47 27 .91 .71 12 48 6 9 8 7
305. 373. 418. 390. 849. 309. 696.6 745.0
Other Current Assets 59 52 35 61 5 32 9 3 13.85 52.05
40.9 54.0 59.2 2490 251.1 197.8 1141. 1672.
Total Current Assets 0 0 2 1 9 .11 3 2 07 84
2737 1684 4693 3970 3887 5172 5450. 5343. 6388. 6907.
Total Assets .83 .22 .89 .86 .25 .04 28 7 19 52
6213 6478 7606 9131 9246 1383 37445 34189 33869 33924
OTHER ADDITIONAL INFORMATION .46 .4 .6 .2 .49 7 .55 .93 .27 .37
CONTINGENT LIABILITIES,
COMMITMENTS                    
Contingent Liabilities                    
85.3 184. 477. 781. 1103 1816 3464. 3697. 6060. 6015.
CIF VALUE OF IMPORTS 6 24 83 55 .41 .58 21 86 34 09
Raw Materials                    
259. 327. 258. 289. 269. 289. 632.3 588.4
Stores, Spares And Loose Tools 26 29 58 52 2 47 2 6 0 0
21.3 34.7 49.8 49.3
Trade/Other Goods 0 0 2 1 6 8 75.84 39.32 0 0
33.7 94.4 90.0 151.0
Capital Goods 0 0 3 66.9 4 8 9 59.22 0 0
EXPENDITURE IN FOREIGN 36.7 90.3 90.7 121. 148. 363.6 201.2
EXCHANGE 7 24.2 5 8 76 94 6 2 0 0
Expenditure In Foreign Currency                    
REMITTANCES IN FOREIGN 129. 111. 111. 154. 252. 684. 1333. 1270. 2448. 3014.
CURRENCIES FOR DIVIDENDS 86 41 71 94 4 99 44 04 41 34
Dividend Remittance In Foreign
Currency                    
EARNINGS IN FOREIGN EXCHANGE - - - - - - - - - -
813. 838. 896. 1462 1923 2271 4623. 3957. 4411. 4081.
Other Earnings 77 95 36 .82 .8 .33 5 17 81 64
14.3 11.8 37.7 45.4 247.0 259.9
BONUS DETAILS 4 8 4.2 1.77 2 7 5 3 - -
Bonus Equity Share Capital                    
80.8 80.8 80.8 80.8 80.8 184. 184.3 184.3 183.8 183.8
NON-CURRENT INVESTMENTS 2 2 2 2 2 37 7 7 1 1
Non-Current Investments Quoted
Market Value                    
Non-Current Investments Unquoted 150. 571. 233. 63.2 63.9 123.5 190.1
Book Value 04 22 27 7 66.6 7 72.98 54.19 3 4
2664 3580 1710 3531 3314 26370 22871 19226 17931
CURRENT INVESTMENTS .2 .97 .95 .07 .76 6094 .49 .37 .77 .48
Current Investments Unquoted Book 12.0
Value - - 34.6 9 - - 9.34 11.23 - -

INCOME STATEMENT
Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar
  -09 -10 -11 -12 -13 -14 -15 -16 -17 -18
Revenue From Operations 2,83 1,89 1,98 2,46 2,32 2,82 7,88 7,26 7,50 7,69
[Gross] 3.65 1.16 5.78 3.10 9.75 3.77 2.47 2.46 9.67 6.33
Less: Excise/Service Tax/Other 46.0 52.6 64.9 86.3 99.4 151. 130. 109.
Levies 59 7 6 3 5 6 55 43 24 0
Revenue From Operations 2,77 1,84 1,93 2,39 2,24 2,72 7,73 7,13 7,40 7,69
[Net] 4.65 5.09 3.12 8.17 3.40 4.31 0.92 2.03 0.43 6.33
2,77 1,84 3,10 4,01 2,43 2,82 8,01 7,61 7,68 7,94
Total Operating Revenues 4.65 5.09 7.57 5.56 2.14 8.79 7.19 4.46 3.96 7.60
1,27 765. 194. 343. 236. 177. 211. 431. 515. 1,12
Other Income 6.22 98 72 28 61 76 58 82 08 8.04
4,05 2,61 3,30 4,35 2,66 3,00 8,22 8,04 8,19 9,07
Total Revenue 0.87 1.07 2.29 8.84 8.75 6.55 8.77 6.28 9.04 5.64
EXPENSES                    
741. 788. 718. 951. 705. 894. 2,26 2,01 2,22 2,16
Cost Of Materials Consumed 66 8 26 71 79 62 1.11 9.85 8.45 7.52
1,27 137. 176. 187. 200. 185. 934. 1,17 1,23 1,16
Purchase Of Stock-In Trade 0.67 04 68 48 96 04 22 0.00 6.50 5.99
- - - - - - -
Changes In Inventories Of 23.7 30.9 81.7 10.5 14.5 318. 68.4 167. 159.
FG,WIP And Stock-In Trade 8 1 1.99 3 3 3 1 8 86 26
148. 174. 261. 316. 234. 279. 1,48 1,48 1,49 1,61
Employee Benefit Expenses 31 71 09 56 87 63 6.68 0.51 9.88 7.69
18.3 551. 530. 223. 388.
Finance Costs 2.77 0.44 0.59 0.43 0.44 8 25 64 57 31
Depreciation And Amortization 58.8 69.4 64.2 75.7 85.8 101. 660. 463. 422. 432.
Expenses 6 7 3 2 2 94 68 98 28 23
513. 471. 625. 882. 788. 1,46 3,57 3,44 2,77 2,71
Other Expenses 04 03 47 92 37 6.96 5.70 7.56 3.02 4.12
2,75 1,66 1,84 2,33 2,00 2,93 9,78 9,04 8,21 8,64
Total Expenses 5.46 3.48 8.31 3.09 5.72 2.04 7.74 4.06 5.84 5.12
                     
- -
Profit/Loss Before Exceptional, 1,29 947. 1,45 2,02 663. 74.5 1,55 997. - 430.
Extraordinary Items And Tax 5.41 59 3.98 5.75 03 1 8.97 78 16.8 52
- - - -
1,29 947. 1,45 1,72 663. 2,80 1,55 1,06 - 519.
Profit/Loss Before Tax 5.41 59 3.98 5.83 03 1.09 8.97 7.91 16.8 98
Tax Expenses-Continued
Operations                    
-
22.9 114. 25.3
Current Tax 24.1 52.6 57 4 98 0 108 5.45 5.77 9
-
- 13.1 27.4 192.
Deferred Tax 4.48 2.09 8 5.4 31.5 3 84 0 0.27 0
Total Tax Expenses 30.1 50.5 70.1 28.3 146. 27.4 - 5.45 6.04 -
2 1 8 4 48 3 84.8 25.3
 4 9
- - - - -
Profit/Loss After Tax And 1,26 897. 1,38 1,69 516. 2,82 1,47 1,07 22.8 494.
Before Extraordinary Items 5.29 08 3.80 7.49 55 8.52 4.13 3.36 4 59
- - - - -
Profit/Loss From Continuing 1,27 898. 1,38 1,69 516. 2,82 1,47 1,07 22.8 494.
Operations 6.99 65 3.80 7.49 55 8.52 4.13 3.36 4 59
- - - - -
1,27 898. 1,38 1,69 516. 2,82 1,47 1,07 22.8 494.
Profit/Loss For The Period 6.99 65 3.80 7.49 55 8.52 4.13 3.36 4 59
                     
OTHER ADDITIONAL
INFORMATION                    
EARNINGS PER SHARE                    
61.6 43.3 -
Basic EPS (Rs.) 5 9 13.4 16.4 5 13.7 -6 -4.5 -0.1 -2.1
61.6 43.3 -
Diluted EPS (Rs.) 5 9 13.4 16.4 5 13.7 -6 -4.5 -0.1 -2.1
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS                    
276. 314. 297. 380. 384. 419. 1,04 823.
Imported Raw Materials 01 73 65 02 45 5 6.66 35 0 0
386. 394. 420. 571. 321. 475. 1,21 1,19
Indigenous Raw Materials 98 43 61 69 34 12 4.45 6.50 0 0
STORES, SPARES AND LOOSE
TOOLS                    
27.6 35.9 52.1 77.9 77.3
Imported Stores And Spares 0.25 0.33 9 4 52.6 3 9 4 0 0
27.9 31.9 70.6 82.6 118. 132. 267. 283.
Indigenous Stores And Spares 8 3 4 6 52 8 5 04 0 0
DIVIDEND AND DIVIDEND
PERCENTAGE                    
284. 284. 362. 440. 517. 310. 721. 240. 240.
Equity Share Dividend 79 79 45 12 79 67 95 68 68 0
146.
Tax On Dividend 48.4 47.3 58.8 71.4 88 52.8 97 7.47 7.47 0
Equity Dividend Rate (%) 275 275 350 425 500 150 300 100 350 200

CASH FLOW
  Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Profit Before Tax - - - -16.8 -519.98
 2801.09 1558.97 1067.91
- - -
Net Cash Flow from Operating Activity 2405.06 148.59 1244.45 -1621 1184.06
Net Cash Used in Investing Activity 519.14 2152.81 3630.19 2381.38 1404.45
- -
Net Cash Used in Financing Activity 1742.1 2674.09 2425.12 -752.99 -272.10
Net Inc/Dec In Cash and Cash Equivalent -145.49 -371.05 -38.86 6.53 -49.72
Cash and Cash Equivalent - Beginning of the Year 221.81 564.25 193.20 140.99 147.52
Cash and Cash Equivalent - End of the Year 76.32 193.2 154.34 147.52 97.80

RATIOS
Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar-
Per Share Ratios 09 10 11 12 13 14 15 16 17 18
 61.6 43.3
Basic EPS (Rs.) 5 9 13.4 16.4 5 -13.7 -6.1 -4.5 -0.1 -2.1
61.6 43.3
Diluted EPS (Rs.) 5 9 13.4 16.4 5 -13.7 -6.1 -4.5 -0.1 -2.1
46.7 13.9 17.1 -
Cash EPS (Rs.) 64.5 4 8 2 5.82 13.16 -3.93 -2.53 1.66 -0.26
Book Value
[ExclRevalReserve]/S 248. 276. 64.5 76.0 75.2 109.7
hare (Rs.) 72 07 1 7 1 35.77 8 89.27 87.58 82.4
Book Value
[InclRevalReserve]/Sh 248. 276. 64.5 76.0 75.2 109.7
are (Rs.) 72 07 1 7 1 35.77 8 89.27 87.58 82.4
13.7 13.7
Dividend / Share(Rs.) 5 5 3.5 4.25 5 1.5 3 1 3.5 2
Revenue from
Operations/Share 133. 89.0 30.0 38.7 23.4
(Rs.) 96 8 1 8 9 13.66 38.71 31.64 32.03 33.03
65.5 49.1 14.6
PBDIT/Share (Rs.) 2 3 7 20.3 7.24 0.94 -1.68 -0.01 2.62 5.21
62.6 45.7 14.0 19.5
PBIT/Share (Rs.) 8 7 5 7 6.41 0.45 -4.87 -1.94 0.86 3.41
62.5 45.7 14.0 16.6 -
PBT/Share (Rs.) 4 5 4 7 6.4 13.52 -7.53 -4.44 -0.07 -2.17
61.6 43.3 13.3 16.3 -
Net Profit/Share (Rs.) 5 9 6 9 4.99 13.66 -7.12 -4.46 -0.1 -2.06
Profitability Ratios                    
55.1 48.8 52.3
PBDIT Margin (%) 48.9 4 7 4 30.8 6.88 -4.32 -0.04 8.18 15.78
46.7 51.3 50.4 27.2 -
PBIT Margin (%) 8 8 46.8 5 7 3.28 12.56 -6.13 2.69 10.33
46.6 51.3 46.7 42.9 27.2 - - -
PBT Margin (%) 8 5 8 7 6 99.02 19.44 14.02 -0.21 -6.56
46.0 44.5 42.2 21.2 - - -
Net Profit Margin (%) 2 48.7 2 7 3 99.99 18.38 14.09 -0.29 -6.24
Return on Net 24.7 15.7 20.7 21.5 -
worth / Equity (%) 8 1 1 4 6.63 38.18 -6.48 -4.99 -0.1 -2.5
Return on Capital 15.3 20.2 20.9 -
Employed (%) 24.2 7 9 2 6.38 27.91 -5.58 -4.23 0.9 3.77
20.5 13.8 18.1 18.5 -
Return on Assets (%) 5 7 9 8 5.58 20.44 -3.93 -3.13 -0.06 -1.45
Total Debt/Equity (X) 0 0.01 0.01 0.01 0.01 0.33 0.24 0.26 0.23 0.34
Asset Turnover Ratio 44.6 28.4 40.8 43.9
(%) 5 8 5 7 26.3 20.44 21.41 22.27 22.68 23.35
Liquidity Ratios                    
Current Ratio (X) 2.92 2.65 5.97 3.9 3.37 1.4 0.49 0.6 0.58 0.56
Quick Ratio (X) 2.4 1.75 5.18 3.27 2.61 1.15 0.3 0.36 0.37 0.39
Inventory Turnover
Ratio (X) 5.7 3.24 5.03 6.27 2.8 3.08 3.66 3.57 3.33 3.71
- -
Dividend Payout 31.6 26.1 25.9 100. - - - 1,053 161.2
Ratio (NP) (%) 22.3 9 9 2 24 10.98 48.97 22.42 .76 9
-
Dividend Payout 21.3 29.4 25.0 24.8 85.9 - - - 1,279
Ratio (CP) (%) 1 1 3 2 5 11.39 88.75 39.49 60.25 .24
Earnings Retention 68.3 73.8 74.0 110.9 148.9 122.4 1,153 261.2
Ratio (%) 77.7 1 1 8 -0.24 8 7 2 .76 9
Cash Earnings 78.6 70.5 74.9 75.1 14.0 111.3 188.7 139.4 1,379
Retention Ratio (%) 9 9 7 8 5 9 5 9 39.75 .24
Valuation Ratios                    
21,7 36,9 44,5 57,6 84,3
97.1 08.4 52.4 90.0 60.3 121,0 216,7 202,7 169,6 125,4
Enterprise Value (Cr.) 2 2 3 1 4 19.78 35.09 02.44 44.26 84.55
EV/Net Operating 14.3 14.3 34.6
Revenue (X) 7.86 20 4 7 9 42.78 27.03 26.62 22.08 15.84
- -
16.0 36.2 29.3 27.4 112. 621.1 624.5 64,14 269.6
EV/EBITDA (X) 6 7 3 5 59 6 2 6.34 8 100.3
Market Cap/Net
Operating Revenue 20.0 14.7 14.6 34.8
(X) 8.3 9 2 9 5 41.98 26.41 25.9 21.47 15
77.6 74.0 110.9 148.9 122.4 1,153 261.2
Retention Ratios (%) 9 68.3 73.8 7 -0.24 8 7 2 .76 9
10.8
Price/BV (X) 4.47 6.48 6.85 7.49 8 16.03 9.31 9.18 7.85 6.01
Price/Net Operating 20.0 14.7 14.6 34.8
Revenue 8.3 9 2 9 5 41.98 26.41 25.9 21.47 15
Earnings Yield 0.06 0.02 0.03 0.03 0.01 -0.02 -0.01 -0.01 0 0

PER SHARE RATIO

1. BASIC EPS

YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Basic EPS (Rs.) 61.65 43.39 13.4 16.4 5 -13.7 -6.1 -4.5 -0.1 -2.1

Basic EPS (Rs.)

12

10

6
Rs

0
0 2 4 6 8 10 12
Years

BASIC EARNING PER SHARE (COMMENT)

 Basic earnings per share is a rough measurement of the amount of a

company’s profit that can be allocated to one share of its stock
 Diluted EPS is a performance metric used to gauge the quality of a
company’s earnings per share if all convertible securities were exercised.
 Convertible securities are all outstanding convertible preferred shares,
convertible debentures, and stock options.

2. CASH EPS

YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
 17.1 -
Cash EPS (Rs.) 64.5 46.74 13.98 2 5.82 -13.16 3.93 -2.53 1.66 -0.26

Cash EPS
70

60

50

40

30
Rs

20

10

0
2008 2010 2012 2014 2016 2018 2020
-10

-20

years

CASH EARNING PER RATIO (COMMENT)

 Cash EPS is a measure of financial performance that looks at the cash flow
generated by the company on a per share basis. This differ from basic
earnings per share (EPS), which looks at the net income of the company on
a per share basis.
 The higher a company’s cash EPS, the better it is considered to have
performed over the period.

As we can see that in the year 2009 it was 64.5(highest) and -13.16(lowest), sun
pharma try to get back to normal in 2018.

3. Book Value [ExclRevalReserve]/Share (Rs.)

200 201 201 201 201 201

YEARS 9 0 1 2012 3 2014 5 6 2017 2018
Book Value
[ExclRevalReserve]/Share 248. 276. 64.5 76.0 75.2 35.7 109. 89.2 87.5
(Rs.) 72 07 1 7 1 7 78 7 8 82.4

Book Value [ExclRevalReserve]/Share (Rs.)

300

250

200
R s.

150

100

50

0
2008 2010 2012 2014 2016 2018 2020
YEARS

Book Value [ExclRevalReserve]/Share (Rs.)

 Book value of an asset is the value at which the asset is carried on a balance
sheet and calculated by taking the cost of an asset minus the accumulated
depreciation.
 Book value is also the net asset value of a company, calculated as total
assets minus intangible assets (patent, goodwill) and liabilities. Book value
is the highest in 2010 and lowest in 2014.

4. Book Value [InclRevalReserve]/Share (Rs.)

 201 201 201 201 201 201 201
YEARS 2009 2010 1 2 3 4 2015 6 7 8
Book Value 248. 276. 64. 76. 75. 35. 109. 89. 87. 82.
[InclRevalReserve]/Share (Rs.) 72 07 51 07 21 77 78 27 58 4

Book Value [InclRevalReserve]/Share (Rs.)

300

250

200

150
Rs

100

50

0
2008 2010 2012 2014 2016 2018 2020
YEARS

Book Value [InclRevalReserve]/Share (Rs.)

 Book value of an asset is the value at which the asset is carried on a balance
sheet and calculated by taking the cost of an asset minus the accumulated
depreciation.
 Book value is also the net asset value of a company, calculated as total
assets minus intangible assets (patent, goodwill) and liabilities.
 As we can see that book value of company is not stable of sun pharma
company

5. Dividend / Share (Rs.)

YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Dividend / Share(Rs.) 13.75 13.75 3.5 4.25 5 1.5 3 1 3.5 2

Dividend / Share(Rs.)
16

14

12

10

8
Rs.

0
2008 2010 2012 2014 2016 2018 2020
YEARS

Dividend / Share (Rs.)

Dividend per Share (DPS) is the total dividends paid out by a business, including
interim dividends, divide by the no. of outstanding ordinary shares issued.
 A company’s DSP is usually derived using the dividend paid in the most
recent quarter, which is also used to calculate the dividend yield
 The highest dividend paid by the company is in the year 2010 and lowest
was in 2016 & 2017.

6. Revenue from Operations/Share (Rs.)

 201 201 201 201 201 201 201 201 201
YEARS 2009 0 1 2 3 4 5 6 7 8
Revenue from 133. 89.0 30.0 38.7 23.4 13.6 38.7 31.6 32.0 33.0
Operations/Share (Rs.) 96 8 1 8 9 6 1 4 3 3

Revenue from Operations/Share (Rs.)

160

140

120

100

80
Rs

60

40

20

0
2008 2010 2012 2014 2016 2018 2020
YEARS

Revenue from Operations/Share (Rs.)

 Sales per share is a ratio that company the total revenue earned per share
over a 12 month period.
 It is calculated by dividing total revenue earned in a fiscal year by the
weighted average of shares outstanding for the fiscal year.
 Highest 134 in 2009 but in 2018 decline to 33 which shows that the
company is less active in terms of business compare to other months.

7. PBDIT/Share (Rs.)
YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PBDIT/Share (Rs.) 65.5 49.13 14.67 20.3 7.24 0.94 -1.68 -0.01 2.62 5.21
 2

PBDIT/Share (Rs.)
70

60

50

40
Rs

30

20

10

0
2008 2010 2012 2014 2016 2018 2020
-10
YEARS

PBDIT/Share (Rs.)

 PBDIT stands for Profit before depreciation and amortization, interest and
tax.
 PBDIT is one indicator of a company’s financial performance and is used as
a proxy for the earning potential of a business. It does not shows the
perfect figures of the company.
 As we can see that PBDIT was above 60 per share till 2010 but after 2010
the company PBDIT was not good till 2018.

8. PBIT/Share (Rs.)
YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PBIT/Share (Rs.) 62.68 45.77 14.05 19.57 6.41 0.45 -4.87 -1.94 0.86 3.41

PBIT/Share (Rs.)
70

60

50

40
Rs

30

20

10

0
2008 2010 2012 2014 2016 2018 2020
-10
YEARS

PBIT/Share (Rs.)

 PBIT is an indicator of the company’s profitability, calculated as revenue

minus expense excluding tax and interest. PBIT is also referred as “opening
earnings” and “operating profits.”
 From 2008 to 2010 the company was earning good profits. After 2010 it
dropped by 14.05 per share in 2011.

9. PBT/Share (Rs.)
YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
45.7
PBT/Share (Rs.) 62.54 5 14.04 16.67 6.4 -13.52 -7.53 -4.44 -0.07 -2.17

PBT/Share (Rs.)
70

60

50

40

30
RS

20

10

0
2008 2010 2012 2014 2016 2018 2020
-10

-20

YEARS

PBT/share (Rs.)

 Profit before tax (PBT) is a profitability measure that looks at the company’s
profit before the company has to pay the corporate income tax by
deducting all expenses from revenue including interest expense expect for
income tax. Also referred to as the “earnings before tax.”
 Again PBT per share is not well and drastically change in 2011 till 2018.

10.Net Profit/Share (Rs.)

YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Net Profit/Share (Rs.) 61.65 43.39 13.36 16.39 4.99 -13.66 -7.12 -4.46 -0.1 -2.06

Net Profit/Share (Rs.)

70

60

50

40

30
Rs

20

10

0
2008 2010 2012 2014 2016 2018 2020
-10

-20

YEARS

Net Profit/Share (Rs.)

 The net asset value per share (NAVPS) also referred to as the book value
per share is an experience for net asset value that represent the value per
share of mutual fund, exchange-traded fund (ETF) or a closed-end fund.
 Sun Pharma net profit per share is highest in 2009 but in 2014 lower
company increase their NAVPS after 2014 and increases in 2017.

PROFITABILITY RATIOS
1. PBDIT MARGIN

YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PBDIT Margin (%) 48.9 55.14 48.87 52.34 30.8 6.88 -4.32 -0.04 8.18 15.78

PBDIT Margin (%)

60

50

40

30
%

20

10

0
2008 2010 2012 2014 2016 2018 2020
-10
YEARS

PBDIT MARGIN

 PBDIT margin is a measurement of a company’s operating profitability as a

percentage of its total revenue. It is equal to earnings before interest, tax,
depreciation & amortization divided by total revenue. Because PBDIT
excludes interest, depreciation, amortization and taxes.
 PBDIT margin can provide an investor, because owner or financial
professional with a clear view of a company’s operating profitability and
cash flow.
 2010 has the highest PBDIT margin

2. PBIT Margin
YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PBIT Margin (%) 46.78 51.38 46.8 50.45 27.27 3.28 -12.56 -6.13 2.69 10.33

PBIT Margin (%)

60

50

40

30

20
%

10

0
0 2 4 6 8 10 12
-10

-20

YEARS

PBIT Margin
 This indicator gives information on a company’s earnings ability. Increase in
PBIT is mainly due to growth of net revenue, good cost control and strong
productivity, decrease in PBIT margin largely results from reduction in
revenue and higher operating costs.
 EBIT margin is most useful when compared against other companies in the
same industry.
 The higher PBIT margin reflects the more efficient cost management or
more profitable business.
 If no positive PBIT margin can be generated over a longer period, then
company should rethink the business model.
 As we can see that 10 years data in 2010 PBIT is good.

3. PBT Margin
YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PBT Margin (%) 46.68 51.35 46.78 42.97 27.26 -99.02 -19.44 -14.02 -0.21 -6.56

PBT Margin (%)

60

40

20

0
2008 2010 2012 2014 2016 2018 2020
-20
%

-40

-60

-80

-100

-120
YEARS

PBT Margin

 Profit margin tax is company’s earnings before tax as a percentage of total

sales or revenues.
 The higher the profit margin tax is an important as the figure itself, since it
provides an indication of which way the company’s profitability is headed.

4. Net Profit Margin

 201 201
YEARS 2009 2010 2011 2012 2013 2014 2015 2016 7 8
Net Profit Margin 46.0 42.2 21.2 - - - - -
(%) 2 48.7 44.52 7 3 99.99 18.38 14.09 0.29 6.24

Net Profit Margin (%)

60

40

20

0
2008 2010 2012 2014 2016 2018 2020
-20
%

-40

-60

-80

-100

-120
YEARS

NET PROFIT MARGIN

 Net profit margin is also called as profit margin is the most profitability ratio
that measures that measures the percentage of net income of an entity to
its net sales. Its represents the promotion of sales that is left over all
relevant expenses have been adjusted. It can also be used to determine the
profitability potential of different industries. While companies in some
industries are able to generate high net profit margin, other industries offer
very narrow margins. It depends on the extent of competition, elasticity of
demand, production differentiation, etc. of the relevant product or market.

5. Return on net worth/ Equity (%)

YEARS 200 201 201 201 201 2014 201 201 201 201
 9 0 1 2 3 5 6 7 8
Return on Networth / Equity 24.7 15.7 20.7 21.5 - - -
(%) 8 1 1 4 6.63 38.18 6.48 4.99 -0.1 -2.5

Return on Networth / Equity (%)

30

20

10

0
2008 2010 2012 2014 2016 2018 2020
-10
%

-20

-30

-40

-50
YEARS

Return on net worth/ Equity (%)

 Return on net worth is used in finance as a measure of a company’s

profitability. It reveals how much profit a company generates with the
money that the equity shareholders have invested.
 This ratio is also useful for comparing the profitability of a company to that
of the other firm in the same industry.

6. Return on captain employed (%)

 200 201 201 201 201 201
YEARS 9 2010 2011 2012 3 2014 5 6 7 8
Return on Capital Employed 15.3 20.2 20.9 - - -
(%) 24.2 7 9 2 6.38 27.91 5.58 4.23 0.9 3.77

Return on Capital Employed (%)

30

20

10

0
2008 2010 2012 2014 2016 2018 2020
%

-10

-20

-30

-40
YEARS

Return on captain employed (%)

 The return on capital employed ratios shows how much profit each rupee
of employee capital generates.
 Obviously, a higher ratio would be more favorable because it means that
more rupees of profits are generated by each rupee of capital employed
Investors are interested in the ratio to see how efficiently a company uses
its capital employed as well as its long term financing strategies.
7. Asset Turnover Ratio

201
YEARS 2009 2010 2011 2012 3 2014 2015 2016 2017 2018
Asset Turnover Ratio 44.6 28.4 40.8 43.9 20.4 21.4 22.2 22.6 23.3
(%) 5 8 5 7 26.3 4 1 7 8 5

Asset Turnover Ratio (%)

50
45
40
35
30
25
%

20
15
10
5
0
2008 2010 2012 2014 2016 2018 2020
YEARS

ASSET TURNOVER RATIO

 Asset turnover ratio is the ratio of the value of a company’s sales or

revenue generated relative to the value of its assets. The Asset Turnover
ratio can often be used as an indicator of the efficiency with which a
company is deploying its assets in generating revenue.
 Assets turnover ratio is actually between 43-55%
 LIQUIDITY RATIO

1. CURRENT RATIO

YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Current Ratio (X) 2.92 2.65 5.97 3.9 3.37 1.4 0.49 0.6 0.58 0.56

Current Ratio (X)

7

4
RA TIO

0
2008 2010 2012 2014 2016 2018 2020
YEARS

CURRENT RATIO
 A liquidity ratio that measures a company ability to pay short term
obligations. The higher the current ratio the more capable the company is
of paying its obligations
 2. QUICK RATIO

YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Quick Ratio (X) 2.4 1.75 5.18 3.27 2.61 1.15 0.3 0.36 0.37 0.39

Quick Ratio (X)

6

4
RA TIO

0
2008 2010 2012 2014 2016 2018 2020
YEAR

QUICK RATIO

 The usefulness of the ratios lies in the fact that is widely accepted as the
best available test of the liquidity position of the firm.
 The quick asset ratio is superior to the current asset ratio,
A quick asset ratio of 1:1 is considered satisfactory as firm can easily meet
all current claims.
 3. INVENTORY TURNOVER RATIO

200 201 201 201 201 201 201 201 201 201
YEARS 9 0 1 2 3 4 5 6 7 8
Inventory Turnover Ratio
(X) 5.7 3.24 5.03 6.27 2.8 3.08 3.66 3.57 3.33 3.71

Inventory Turnover Ratio (X)

7

0
2008 2010 2012 2014 2016 2018 2020

INVENTORY TURNOVER RATIO

 In general, low inventory turnover ratios indicate a company is carrying too

much inventory, which could suggest poor inventory management or low
sales.
 Excess inventory ties up a company’s cash and make the company
vulnerable to drop in market prices.
 Conversely, high inventory turnover ratio may indicate a company is
enjoying strong sales or practicing just in time inventory methods.
 High inventory turnover also means a company is replenishing cash quickly
and has a lower risk of becoming stuck with absolute inventory.
 4. Dividend Payout Ratio (NP) (%)

200 201 201 201

YEARS 9 0 1 2 2013 2014 2015 2016 2017 2018
- - - - -
Dividend Payout Ratio 22. 31.6 26.1 25.9 100. 10.9 48.9 22.4 1,053.7 161.2
(NP) (%) 3 9 9 2 24 8 7 2 6 9

Dividend Payout Ratio (NP) (%)

200

0
2008 2010 2012 2014 2016 2018 2020
-200

-400
%

-600

-800

-1000

-1200
YEARS

DIVIDENT PAYOUT RATIO (NP)

 The dividend payout ratio provides an indication of how much money a

company is returning to shareholders, versus how much money it is
keeping on hand to reinvest in growth, pay off debt or add to cash reserves.
 5. Dividend payout ratios (CP) (%)

200 201 201 201 201 201

YEARS 9 0 1 2 3 2014 2015 2016 7 2018
- - - -
Dividend Payout Ratio 21.3 29.4 25.0 24.8 85.9 11.3 88.7 39.4 60.2 1,279.2
(CP) (%) 1 1 3 2 5 9 5 9 5 4

Dividend Payout Ratio (CP) (%)

200

0
2008 2010 2012 2014 2016 2018 2020
-200

-400

-600
%

-800

-1000

-1200

-1400
YEARS

Dividend payout ratios (CP) (%)

 The dividend payout ratio provides an indication of how much money a

company is returning to shareholders, versus how much money is it is
keeping on hand to reinvest in growth, payoff debt or add to cash reserve.
This latter portion is also called as retained earnings including non-cash
expense.
 6. Earnings Retention Ratio (%)

200 201 201 201 201

YEARS 9 0 1 2 3 2014 2015 2016 2017 2018
-
Earnings Retention 77. 68.3 73.8 74.0 0.2 110.9 148.9 122.4 1,153. 261.2
Ratio (%) 7 1 1 8 4 8 7 2 76 9

Earnings Retention Ratio (%)

1400

1200

1000

800

600
%

400

200

0
2008 2010 2012 2014 2016 2018 2020
-200
YEARS

EARNING RETENTION RATIO

 The % of a publicly traded company’s post tax earnings that are not paid in
dividends. Most earnings retained are reinvested into company’s
operations. Tracking year on year earnings retention ratios is important to
fundamental analysis to investigate whether a company is increasing or
decreasing its rate of reinvestment.
 7. Cash Earnings Retention Ratio (%)

200 201 201 201 201 201

YEARS 9 0 1 2 3 2014 2015 2016 7 2018
Cash Earnings Retention 78.6 70.5 74.9 75.1 14.0 111. 188. 139. 39.7 1,379.
Ratio (%) 9 9 7 8 5 39 75 49 5 24

Cash Earnings Retention Ratio (%)

1600

1400

1200

1000

800
%

600

400

200

0
2008 2010 2012 2014 2016 2018 2020
YEARS

CASH EARNING RETENTION RATIO

 The cash earnings retention ratio is the proportion of earnings kept back in
the business as retained earnings. Retention ratio refers to the percentage
of net income that is retained to grow the business, rather than being paid
out as dividends. It is the opposite of the payout ratio, which measures the
percentage of earnings paid out to shareholders as dividends.
 CONCLUSION

 No. 1 Pharma Company in India with 8.6% market share and 30 brands in the
company’s top 300 brand.
 The Net Profit Margin (%) of the company is decreasing over the study period.
Hence the organization will never have will never have the good control over
the operating expenses.
 Company’s own capital is consistent so they didn’t borrow.
 The firm is maintaining cash in hand with company which shows firm is able
to pay its short term obligations.
 Company’s yearly turnover seems good so they conduct a several no of
corporate social responsibility.
 R & D investments for the year 2, 3 billion it means future planning for sun
pharma is good.
 Return on assets seems high in the beginning of the years but then it again
went down.
 Inventory turnover ratio manage perfectly, pharmaceuticals companies have
so many software for manage this type of inventory management system for
overall company benefits and provide all the material just in time.
 SUGGESTIONS
 The company is having negative balance for cash flow from operating activity
that shows it’s not able to sell its product in the market n are adding losses to
the firm
 New product should be launch to convert the negative balance into positive
one
 Company should try to reduce their operating expenses in order to increase
its profit after tax
 There is increase in total liabilities which mean that firm is engaged in
external borrowing that is a huge burden for the firm to repay the principal
amount as well as interest amount
 BIBLIOGRAPHY
 https://www.moneycontrol.com/financials/sunpharmaceuticalindustries/balan
ce-sheetVI/SPI#SPI
 https://www.moneycontrol.com/financials/sunpharmaceuticalindustries/profit
-lossVI/SPI#SPI
 http://www.sunpharma.com/