ANNUAL REPORT FOR 2017-18 COMPANY: CIPLA LTD.

1. Please state the summarized income statement equation for the last two years from the latest given company
annual report with all figures in Rs. Cr.
The summarized income statement equation is:
(Retained Earnings during a period) = (Revenue) - (Expenses + Dividends)

Retained
Revenue-
Earnings
Particulars Revenue Expenses Dividends (Expenses+
during the
Dividends)
period
=
[R] [E] [D] [X] = [R]-[E+D] [X]

Year ended 31st March 2018 11779.69 10311.17 189.27 1279.25 1279.25

Year ended 31st March 2017 11104.43 10129.49 193.58 781.36 781.36

 Total revenue is more or less same in both the years (2017 and 2018), but there is 63.72 % increase in the Retained
earnings for 2018 as profit for the year has gone up from Rs. 974.97 Cr. in 2017 to Rs. 1468.52 Cr. in 2018.
 The impairment of investment cost became nil in 2018 from Rs. 251.41 Cr. in 2017. It is mentioned that the Company’s
wholly owned subsidiary Cipla BioTec Pvt. Ltd. Had decided to reposition the Biotechnology business to explore new
business development opportunities including in-licensing to de-risk future investments in the segment without solely
relying on in-house development. Accordingly, the Company had re-assessed the carrying value of investment in Cipla
BioTec Pvt. Ltd. and recorded impairment charge of Rs. 251.41 Cr. during the previous year ended 31st March, 2017.

2. Mention three biggest items as part of the “sales / revenue / income” and “expenses / dividends / deductions”
(along with their proportions) as mentioned in the annual report (to the extent available) for last two years

Sr Clause Sub Clause Amount Amount % of % Comments

N. 2018 (In Cr.) 2017 (In total Change
Cr.) (Mar-18) wrt. 2017
1 Revenue Revenue from Sale 11004.44 10637.08 93.42% 3.45% Of total revenue, revenue from sales is
of Product significantly high. There is a slight
increase in the revenue compared to
previous year.
2 Expenses Finance cost 11.90 39.20 0.40% -69.64% Interest and borrowing expenses have
come down in 2018.
3 Expenses Change in -212.05 56.27 0.57% -476.84% The WIP inventory has become negative
inventories in ’18 as WIP goods that have been
(Finished Goods), completed during ’17 are credited to
WIP and SIT the WIP inv. account and debited to the
finished goods inv. account.
4 Reserves and Earning per equity 18.22 12.11 - 50.45% Earnings per share has increased by
Surplus share 50.45% as profit increased from
974.94Cr. to 1468.52 Cr. in 2018.

3. Referring to the format given to you, mention one item that is missing and mention one item that you have found
interesting in the income statement.

MISSING ITEMS:
Extraordinary Items: No extraordinary items are mentioned in the statement as company has not accounted for
unforeseen and atypical events.

Dividend: The dividend is not mentioned in the statement. However in the annual report it is mentioned that The Board of
Directors of the Company at its meeting held on 22nd May 2018 has recommended a final dividend of Rs. 3.00 per equity share
for the financial year ended 31st March 2018. is subject to approval at the ensuing Annual General Meeting of the Company,
and hence not recognized as liability.

INTERESTING ITEMS:
Remeasurement of Post Post-retirement benefits obligation has dropped to 2.71Cr in 2018 from 10.60 Cr.
in 2017 which may be due to life insurance and medical plans, or premiums for such benefits, as well as deferred-compensation
arrangements etc.

Other Income has become 334.88 Cr. in 2018 which was 129.85 Cr. in 2017, mainly because of divided income from
subsidiaries- carried at amortized cost.