A

PROJECT REPORT

ON

A STUDY OF FINANCIAL STATEMENTS ANALYSIS OF CIPLA LTD COMPANY

Submitted To

SAVITRIBAI PHULE PUNE UNIVERSITY

For the Partial Fulfilment of the

Degree of Masters of Commerce

Submitted By

Ms. Prajakta Ravindra Rane

M.Com Part-II Semester – IV

Division – A Roll No. 214

Under the Guidence of

DR. AVINASH CHINTAMANI

Gokhale Education Society’s

B.Y.K.(Sinnar) College of Commerce, Nashik

Year: 2023-2024

I
 Gokhale Education Society’s

B.Y.K. (Sinnar) College of Commerce, Nashik-05

CERTIFICATE OF GUIDE

This is to certify that Miss Prajakta Ravindra Rane of M.Com Part-II Semester-IV , Division-
A Roll No- 214 of B.Y.K College of Commerce has successfully completed the project work
titled “ A Study Of Financial Statements Analysis of Cipla Ltd. Company” in partial fulfillment
of requirement for the completion of Post Graduate course as prescribed by the B.Y.K College
of Commerce.

The project report is record of authentic work carried out by her. She has worked under my
guidance. Materials obtained from other sources have been duly acknowledged in the project.

Dr. Avinash Chintamani

Research Project Guide

II
 DECLARATION FROM THE CANDIDATE

I hereby declare that the project report “A Study of Financial Statements Analysis Of Cipla Ltd.
Company” submitted by me for the degree of Masters of Commerce is the record of work
carried out by me under the guidance of Dr. Avinash Chintamani and has not formed the basis
for the award of any degree, diploma, fellowship, titles in this on any other university or other
institutions of higher learning. I further declare that the material obtained from other sources
has been duly acknowledged in this project report.

Ms. Prajakta Ravindra Rane

Date:

III
 ACKNOWLEDGEMENT

I have pleasure in successful completion of the work titled “A Study of Financial Statements
Analysis of Cipla Ltd. Company”

The special environment at B.Y.K. College of Commerce, Nashik that always supports
educational activities, facilitated my work on this project. I acknowledge the support, the
encouragement, extended for this study by Principal, Dr. V.N. Suryawanshi Sir and the Head
of Department Dr. Mangesh Bhavsar Sir too.

I am very much thankful to Dr. Avinash Chintamani Sir for his encouragement and guidance
for this project work. It could not have been possible for me to complete this work without his
suggestion on every part of this project work.

I acknowledge the authors, whose works gave me insight and information related to this
subject. I am thankful to library staff and administrative staff of the B.Y.K. College of
Commerce who directly or indirectly have all been helpful in one way or another. I thank my
parents who encouraged me to extend my reach, with their help and support: Also my friends
Moksha Sachin Shah And Moksha HemantKumar Shah for supporting me throughout the work
because that I have been able to complete this project.

Date:

Signature

(Prajakta Ravindra Rane)

IV
 INDEX

Sr.No. Particulars Page No.

1. INTRODUCTION 1 to 13
Introduction of Financial Statement
Meaning of Financial Statement
Importance of Financial Statement
Parties/Stakeholders are interested in Financial Statement
Meaning of Financial Statement Analysis
Definitions of Financial Statement Analysis
Importance of Financial Statement Analysis
Advantages of Financial Statement Analysis
Tools and Techniques of Financial Statement Analysis

2. REVIEW OF LITERATURE 14 to 26
Introduction of Literature Review
Meaning of Literature Review
Definition of Literature Review
Importance of Review of Literature
Types of Literature Review
Purpose of Literature Review
3. RESEARCH METHODOLOGY 27 to 37
Introduction of Research
Meaning of Research
Definition of Research
Research Process
Objectives of Study
Need of Study
Methodology of Study

V
 Chapter Scheme

4. PROFIL OF ORAGANISATION 38 to 46
History
Products and Services
Our Offerings
Manufacturing
Listing and Shareholding
Awards and Recognitions
5. DATA ANALYSIS AND INTERPRETATION 47 to 55
Introduction of Data Analysis and Interpretation
Meaning of “Analysis” of Data
Meaning of Interpretation of Data
Importance of Interpretation of Data

6. FINDINGS, SUGGESTIONS AND 56 to 60

CONCLUSION
Introduction
Findings
Suggestions
conclusion
BIBLIOGRAPHY 61 to 61

VI
CHAPTER NO – 1

INTRODUCTION

1
INTRODUCTION
Financial statements are reports prepared by a company’s management to present the financial
performance and position at a point in time. A general-purpose set of financial statements
usually includes a balance sheet, income statements, statement of owner’s equity, and statement
of cash flows. These statements are prepared to give users outside of the company, like
investors and creditors, more information about the company’s financial positions. Publicly
traded companies are also required to present these statements along with others to regulator
agencies in a timely manner.

Financial statement analysis is the process of reviewing and analysing a company’s financial
statements to make better economic decisions to earn income in future. These statements
include the income statement, balance sheet, statement of cash flow. Financial statement
analysis is a method or process involving specific techniques for evaluating risks, performance,
financial health and future prospects of an organization.

2
Meaning of Financial Statement
Financial statements are written records that convey the business activities and the financial
performance of a company. Financial statements are often audited by government agencies,
accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. For-
profit primary financial statements include the balance sheet, income statement, statement of
cash flow, and statement of changes in equity. Non-profit entities use a similar but different set
of financial statements.

Investors and financial analysts rely on financial data to analyze the performance of a company
and make predictions about the future direction of the company’s stock price. One of the most
important resources of reliable and audited financial data is the annual report, which contains
the firm’s financial statements.

The financial statements are used by investors, market analysts, and creditors to evaluate a
company’s financial health and earnings potential. The three major financial statement reports
are the balance sheet, income statement, and statement of cash flows.

3
Balance Sheet –

The balance sheet provides an overview of a company’s assets, liabilities, and shareholders’
equity as a snapshot in time. The date at the top of the balance sheet tells you when the snapshot
was taken, which is generally the end of the reporting period. Below is a breakdown of the
items in a balance sheet.

Income Statement –

Unlike the balance sheet, the income statement covers a range of time, which is a year for
annual financial statements and a quarter for quarterly financial statements. The income
statement provides an overview of revenues, expenses, net income, and earnings per share.

Cash Flow Statement –

The cash flow statement (CFS) measures how well a company generates cash to pay its debt
obligations, fund its operating expenses, and fund investments. The cash flow statement
complements the balance sheet and income statement.

Importance of Financial Statement

To know the financial position –

Financial statements provide summary of financial information regarding solvency, liquidity,

profitability and financial health of the business concern.

To formulate plans and policies –

Financial statements provide accurate data and financial information to the management. So,
the management can formulate appropriate future plans and policies.

Decision making –

Management can take various decisions regarding research, promotion, expansion, planning,
forecasting etc. on the basis of financial statements.

Useful for shareholders –

4
Shareholders or investors can know the financial strength, earning capacity and efficiency of
the management with the help of information received from financial statements.

Useful for employees –

Employee’s salary, bonus and other financial incentives can be fixed on the basis of financial
results provided by financial statements.

Useful for tax purpose –

Company’s tax liability is determined on the basis of financial statements.

Lending decisions –

Banks and other financial institutions use financial statements of the company to make lending
decision.

5
Parties / Stakeholders Interested In Financial Statements
1. Shareholders : In every public limited company, shareholders are the real
owners of the company. Hence, they want to know the way of utilizing their
investments and ascertain the profitability and financial strength of the
company.
2. Debenture holders : Debenture holders are the lenders or creditors of the
company. They want to know the short term and long term solvency position of
the company. Short term solvency is find out to know whether interest is payable
by a company and long term solvency is find out to know whether principal
amount is payable by a company.
3. Creditors : They are the suppliers of the raw materials and other necessary items
on credit to the company. They are interested to know the liquidity position of
the company.
4. Commercial banks and financial institutions : Both commercial banks and
financial institutions may lend both short term loan and long term loan. Hence,
they are interested to know the short term solvency, long term solvency and
profitability of the company.
5. Prospective investors : Prospective investors who are going to buy the shares of
the company in the very future. Hence, they are interested to know future
prospects and financial strength of the company.
6. Employees : The regular payment of wages and salaries are based on the
financial position of the company. Hence, they are interested to know financial
position of the company.
7. Trade unions : The interest of the employees is protected only by the trade union.
The interest of the employees can be protected if the financial position of the
company is very strong. Hence, they are interested to know the financial
position of the company.
8. Loyal customers or regular customers : Some customers are loyal to the
company since they are buying the products for long period continuously.
Hence, they are interested to verify the financial strength of the company.

6
 9. Tax authorities : Tax payable is based on the amount of profits earned by the
company. Hence, the tax authorities are using the financial statements for
calculating profits earned by the company.
10. Government departments : Department of company affairs and other
government departments are dealing with the industry in which the company is
engaged are interested in the financial information relating to the company.
11. Research institutions and researchers : Social research institutions and
researchers are using the financial statements. They analyze the financial
statements to find out the role of each industry in economic development of a
nation.
12. Economists : The economists are using the financial statements information for
assessing economic conditions of workers.
13. SEBI and stock exchanges : These are interested to assess the financial position
and level of performance of listed companies with a view to protecting the
interests of investors.
14. Managers or management : The management or manager has started to show
keep interest in knowing the contents of financial statements which are used for
internal management and control. Financial statements help the management in
its various functions of planning, control, coordination and motivation.

Meaning of Financial Statement Analysis

Financial Analysis is the process of evaluating businesses, projects, budgets and other finance-
related transactions to determine their performance and suitability, typically, financial analysis
is used to analyse whether an entity is stable, solvent, liquid or profitable enough to warrant a
monetary investment.

Financial statement Analysis is a process to identify the strength and weakness of the business
organization. It includes two things i.e., Analysis and Interpretation. Analysis means to
rearrange the data such manner so that it becomes easy to understand and interpretation means
to explain the meaning and importance of data. This process is done to know about the financial
position of the business.

7
Definitions of Financial Statement Analysis

Financial Statements Analysis is an analysis which highlights important relationships in the

financial statements. It focuses on evaluation of past operations as revealed by the analysis of
basic statements. Financial Statement Analysis embraces the methods used in assessing and
interpreting the result of past performance and current financial position as they relate to
particular factors of interest in investment decisions. It is an important means of assessing past
performance and in forecasting and planning future performance.

Some of the important definitions given by renowned authors are summarised as follows:

1. According to Lev,

“Financial Statement Analysis is an information processing system designed to provide

data for decision – making models, such as the portfolio selection models, bank lending
decision models, and corporate financial management models"

2. According to Myers,

“Financial Statement Analysis is largely a study of relationship among the various

financial factors in a business as disclosed by a single set of statements and a study of
the trends of these factors as shown in a series of statements”.

3. According to Metcalf And Titard,

“Analysis of Financial Statements is a process of evaluating the relationship between

component parts of a Financial Statement to obtain a better understanding of a firm’s
position and performance”.

8
Importance of Financial Statement Analysis
Financial Analysis is required to determine the financial health and stability of the company. It
helps in determining the current financial position and upcoming financial requirement. In
order to assess financial health and performance of a company, a Financial Analysis is required.

One of the experts rightly pointed out that “Financial Analysis is important to understand
project or company health. Just like a doctor evaluates a patient’s symptoms through metrics
and symptoms-related trends, similarly a financial analyst assesses metrics and related trends
to identify risks to company’s health and ability to succeed in management’s set goals for the
company”.

1. For Management : To know the company’s profitability, liquidity, and solvency. To

measure the effectiveness of the decisions taken and to take corrective actions ahead.
2. For Investors : To know the business earning capacity and its future growth prospects
and evaluate the safety of their investment and a reliable return.
3. For Creditors : To know the liquidity and solvency position of the business.
4. For Government : To know the profitability position required for taxation purposes and
to take decisions about price regulations.
5. For Customers : To know about the longevity of the business.
6. For Employees : To know about the progress of the company for evaluating bonus,
increase in wages, job stability, etc.

9
Advantages Of Financial Statement Analysis

• Financial Statement Analysis helps to know the business trends by comparing various
types of data such as turnover, net profit, sales, purchases, etc. for two or more years.
This ultimately helps to know how much the progress business is doing.
• Financial Analysis helps to know the efficiency of organization in running the business.
It helps to know whether financial policies and strategies followed by management are
perfect or not.
• Financial Statement Analysis helps to understand the overall financial strength of the
business. It also helps to know whether company’s internal sources of funds are
sufficient or borrowed funds would be required.
• It helps in comparing companies of different size with each other. It highlights
important information is simple form quickly.
• Financial statement analysis helps to know whether the company is making profits or
losses. It also helps know whether such profits / or losses of the firm are increasing or
decreasing. Financial statements have the ability to reveal earning per year, sales and
profit accrued.
• Financial Analysis is a useful tool for users of financial statements. It allows them to
compare a company’s financial performance and financial position across time and with
its competitors.
• Through financial statement analysis, you can determine and identify financial
strengths, weaknesses and relationships that exist in your company.

10
Tools And Techniques of Financial Statement Analysis

The various tools of financial statement analysis help in evaluating and interpreting the
company’s financial statements for planning, investment, and performance.

The mostly commonly used tools of financial analysis are comparative statement (comparison
of financial statements), common size statement (vertical analysis), ratio analysis (quantitative
analysis), trend analysis, cash flow statement and fund flow statement.

Tools of financial statement analysis in following figure:

1. Comparative Statement

Comparative Financial Statement is a method for financial statement analysis. Comparative

Financial Statement is a document which is used to compare the particular financial statements
with prior period statements. In this case, previous year is taken as a base year. Formula -
100/base year*diiference.

Comparative statement analysis is also known as Year to Year (Y to Y) analysis. It is very

popular in the business world. These are statements of financial position at different periods of
time. The elements of financial position are shown in a comparative form so as to give an idea
of financial position at two or more periods.

11
2. Common Size Statement

A statement where individual items are expressed as a percentage of same common base.
Common size statements are also known as “Component Percentage” or “100 Percent
Statement”. A common size financial statement displays items on each report as a percentage
of a common base figure.

In case of profit and loss account we have to take sales as a base year and in case of balance
sheet, we have to take the total of assets and liabilities as a base year. Formula – 100/total of
previous year base*previous year amt.

3. Ratio Analysis

Ratio analysis is one of the popular tools of financial statement analysis. It is method in which
we can analyse a company’s liquidity, profitability or solvency by comparing the items of
financial statements. It is a quotient formed when one items or numbers is divided by another.

A ratio is defined as “the indicated quotient of two mathematical expressions” and as the
relationship between two or more things”. Ratio is the quotient formed when magnitude is
divided by another measured in the same unit.

4. Trend Analysis

Trend analysis is based on the idea that what has happened in the past gives traders an idea of
what will happen in the future. Trend analysis focuses on three typical time horizons: Short;
Intermediate; and Long-term.

Trend analysis is used to evaluate each line item on income statement and balance sheet. It is a
mathematical technique that uses historical results to predict future outcome.

5. Cash Flow Statement

Cash flow statement deals with the inflow and outflow of cash between two balance sheet dates.
That is, it explains the changes in cash position between the two periods. Incoming and
outgoing of cash is termed as cash flow.

The term cash here stands for cash and bank balances. E.g. revenue collected, dividend income,
cash from sale trading securities. Cash flow statement is a statement like Fund flow statement.

12
6. Fund Flow Statement

Fund flows are a reflection of cash that is flowing in and out of financial assets. Refers to inflow
and outflow of funds or assets and its often measured on a monthly or quarterly basis. A fund
flow statement is an essential tool for the financial analysis.

Fund flow statement is called by a variety of names, such as, statement of funds supplied and
applied, inflow and outflow of fund statement, where got and where gone statement, fund
received and disbursed statement and fund movement statement.

Conclusion –
In this chapter, financial statement analysis is valuable tool for business owners and investors
to gain deeper understanding of a company’s financial health. By reviewing and evaluating
financial statements, you can make informed decisions that can ensure the long-term stability
and success of your business.

References –

• https://accountlearning.com/tools-techniques-financial-statement-
analysis/
• M.Com Part I – Financial Analysis and Control

13
 CHAPTER NO – 2

REVIEW OF LITERATURE

14
Introduction

A literature review is an overview of the previously published works on a topic. The term can
refer to a full scholarly paper or a section of a scholarly work such as a book, or an article.
Either way, a literature review is supposed to provide the researcher/author and the audiences
with a general image of the existing knowledge on the topic under question.

A good literature review can ensure that a proper research question has been asked and a proper
theoretical framework and/or research methodology have been chosen. To be precise, a
literature review serves to situate the current study within the body of the relevant literature
and to provide context for the reader. In such case, the review usually precedes the methodology
and results sections of the work.

A literature review can be a type of review article. In this sense, a literature review is a scholarly
paper that presents the current knowledge including substantive findings as well as theoretical
and methodological contributions to a particular topic. Literature reviews are secondary
sources and do not report new or original experimental work. Most often associated with
academic-oriented literature, such reviews are found in academic journals and are not to be
confused with book reviews, which may also appear in the same publication. Literature reviews
are a basis for research in nearly every academic field.

15
Meaning
A literature review is a type of academic writing that provides an overview of existing
knowledge in a particular field of research.

A good literature review summarises, analyses, evaluates and synthesizes the relevant literature
within a particular field of research. It illuminates how knowledge has evolved within the field,
highlighting what has already been done, what is generally accepted, what is emerging and
what is the current state of thinking on the topic. Additionally, literature reviews identify the
gaps in the current knowledge – that is, uninvestigated or under-researched areas.

Definition

• A literature review is an evaluative report of information found in the literature related

to selected area of study. The review describes, summarizes, evaluates and clarifies this
literature. It gives a theoretical base for the research and helps to determine the nature
of research.

... (Queensland University, 1999)

• A literature review is a body of text that aims to review the critical points of knowledge
on a particular topic of research.
… (ANM, 2000)

• A literature review is an account of what has been already established or published on

a particular research topic by accredited scholars and researchers.
… (University of Toronto, 2001)

16
Importance of Review of Literature

• Identification of a research problem and development or refinement of research

questions.
• Generation of useful research questions or projects/activities for the discipline.
• Orientation to what is known and not known about an area of inquiry to ascertain what
research can best contribution to knowledge.
• Determination of any gaps or inconsistencies in a body of knowledge.
• Discovery of unanswered questions about subjects, concepts or problems.
• Determination of a need to replicate a prior study in different study settings or different
samples or size or different study populations.
• Identification of relevant theoretical or conceptual framework for research problems.
• Identification or development of new or refined clinical interventions to test through
empirical research.
• Description of the strengths and weaknesses of design/methods of inquiry and
instruments used in earlier research work.
• Development of hypothesis to be tested in a research study.
• Helps in planning the methodology of the present research study.
• It also helps in development of research instruments.
• Identification of suitable design and data collection methods for a research study.

Types of Literature Review

The four major types include, Narrative Review, Systematic Review, Meta-Analysis, and
Scoping Review. These are known as the major ones because they’re like the “go-to” methods
for researchers in academic and research circles. Think of them as the classic tools in the
researcher’s toolbox. They’ve earned their reputation because they have a unique style for
literature review introduction, clear steps and specific qualities that make them super handy for
different research needs.

17
1. Narrative Review

Narrative reviews present a well-structured narrative that reads like a cohesive story, providing
a comprehensive overview of a specific topic. These reviews often incorporate historical
context and offer a broad understanding of the subject matter, making them valuable for
researchers looking to establish a foundational understanding of their area of interest. They are
particularly useful when a historical perspective or a broad context is necessary to comprehend
the current state of knowledge in a field.

2. Systematic Review

Systematic reviews are renowned for their methodological rigour. They involve a meticulously
structured process that includes the systematic selection of relevant studies, comprehensive
data extraction, and a critical synthesis of their findings. This systematic approach is designed
to minimize bias and subjectivity, making systematic reviews highly reliable and objective.
They are considered the gold standard for evidence-based research as they provide a clear and
rigorous assessment of the available evidence on a specific research question.

3. Meta Analysis

Meta analysis is a powerful method for researchers who prefer a quantitative and statistical
perspective. It involves the statistical synthesis of data from various studies, allowing
researchers to draw more precise and generalizable conclusions by combining data from
multiple sources. Meta analyses are especially valuable when the aim is to quantitatively
measure the effect size or impact of a particular intervention, treatment, or phenomenon.

4. Scoping Review

Scoping reviews are invaluable tools, especially for researchers in the early stages of exploring
a topic. These reviews aim to map the existing literature, identifying gaps and helping clarify
research questions. Scoping reviews provide a panoramic view of the available research, which
is particularly useful when researchers are embarking on exploratory studies or trying to
understand the breadth and depth of a subject before conducting more focused research.

18
Purpose of Literature Review

• To find out what other scholars are writing about your topic.
• To learn methods and approaches that are appropriate for your study.
• To learn appropriate theory to underpin your work.
• To highlight gaps and under-researched areas, to identify current debates and
controversies.
• To help focus your research and sharpen and refine your research questions.
• To know about the recommendations of previous researches.
• To up to date the knowledge.
• To delimit and define his problems.
• To provide an overview of the “big issue”.
• To select some of these issues for your future research.
• To summaries other people’s work.
• To evaluate other people’s work.
• To provide context for your future research.
• To identify gaps in the existing literature.
• To develop an understanding of a theory or method.

1. Dabasish Sur, Joydeep Biswas and Prasenjit Ganguly (2001) studied the Liquidity
Management in Indian Private Sector Enterprises: A case study of Indian Primary
Aluminum industry. From the analysis, it may be summarized that the overall
performance regarding liquidity management at INDAL was better in terms of efficient
utilization of short term funds, whereas HINDALCO was unable to do so. A very high
degree of positive correlation between liquidity and profitability in case of both the
companies was a notable feature, reflecting the favorable effect of liquidity on
profitability.

2. Aggarwal and Singla (2001) in their study developed a single index of financial
performance through the technique of Multiple Discriminate Analysis (MDA).They
attempt to identity from among the 11 ratios, used as inputs, those ratios, which are
relevant in distinguish between profit making units and loss making units in Indian

19
 paper industry. The study indicates that model has correctly classified 82.14 percent of
units selected as profit making and loss marking. The study also shows that inventory
turnover ratio, interest coverage ratio, net profit to total assets and earnings per share
are the most important indicators of financial performance. The study also suggests that
the results of MDA can be used as predictor of future profitability / sickness.

3. Dabasish Sur (2001) studied the Liquidity Management: An overview of four

companies in Indian Power Sector. In this study a comparative analysis regarding the
liquidity management in Electricity generation and distribution industry has been made
for the period 1987-88 to 1996-97. The study reveals that the overall liquidity should
be managed in such a way that not only it should not hamper profitability but also its
contribution towards increase in profitability should be positive.

4. Debashish Rei and Debashish Sur (2001) studied the profitability analysis of Indian
food products industry: A case study of Cadbury India Ltd. The study attempts to
measure the profitability scenario of Cadbury India Ltd. and analyses the relationship
among various profitability ratios and their joint impact using multiple correlation co-
efficient and multiple regression method. The study on the inter-relation between the
selected ratios regarding the company’s position and performance and profitability of
the company revealed both negative and positive association.

5. Mansur A. Mulla (2002) in „Use of „Z‟ score analysis for evaluation of financial
health of textile mills - A case study‟ has been made an insight into the financial health
of Shri Venkatesh Co-operative Textile Mills Ltd., Arunageri of Dharwad District. The
„Z‟ score analysis has been applied to evaluate the general trend in financial health of
a firm over a period by using many of the accounting ratios. From the study it was
concluded that the textiles mill under study was just on the verge of financial collapse.
On the one hand, current assets declined because of the negative profitability
performance, whereas on the other hand, the current liabilities were on the increase
because of poor liquidity performance of the mill.

6. Vijayakumar (2002) in “Determinants of Profitability-A firm level study of the Sugar

Industry of Tamil Nadu”, delved into the various determinants of profitability viz.,
growth rate of sales, vertical integration and leverage. Apart from these three variables,
20
 he had selected current ratio, operating expenses to sales ratio and inventory turnover
ratio. Econometric models were used to test the various hypotheses relating to
profitability with other variables. The researcher noted in his conclusion that efficiency
in inventory management and current assets are important to improve the profitability.

7. Sudarsana Reddy (2003) studied the Financial Performance of Paper industry in AP.
The main objectives set for the study are to evaluate the financing methods and
practices to analyze the investment pattern and utilization of fixed assets, to ascertain
the working capital condition, to review the profitability performance and to suggest
measures to improve the profitability. The data collected have been examined through
ratios, trend, common size, comparative financial statement analysis and statistical tests
have been applied in appropriate context. The main findings of the study are that A.P
paper industry needs the introduction of additional funds along with restructuring of
finances and modernization of technology for better operating performance.

8. Petia Topalova (2004) in his study uses firm level data to examine the performance of
India’s non financial corporate sector since 1989 and evaluate its financial
vulnerabilities. The study shows promising trends in liquidity, profitability and leverage
of the sector emerged in the early 1990s; they experienced a reversal after 1996.
Nevertheless, most indicators were still at comfortable levels, and there is evidence of
improvement in 2002. The study also reveals that a number of firms still face problems
servicing their debt obligations, posing a risk to lenders. The study of aggregate interest
coverage of the corporate sector indicates that potential non-performing loans of the
corporate sector remain high. This underscores the need of the corporate sector remain
high. This underscores the need for close monitoring of the corporate sector in the
future.

9. Santimoy Patra (2005) the impact of liquidity on profitability is analyzed in his study
considering the case Tata Iron & Steel Company Limited. The study of the impact of
liquidity ratios on profitability showed both negative and positive association. Out of
seven liquidity ratios selected for this study, four ratios namely current ratio, acid test
ratio, current assets to total assets ratio and inventory turnover ratio showed negative
correlation with profitability ratio. However, these correlation co-efficient were not

21
 statistically significant. The remaining three ratios namely working capital turnover
ratio, receivable turnover ratio and cash turnover ratio have shown positive association
with the profitability ratio, all of which are statistically significant at 5% level of
significance. The result of all the correlation coefficient is as desirable except
correlation co-efficient between inventory turnover ratio and ROI. However this
undesirable sign between ITR and ROI is not supported by the multiple regression
analysis, which shows the positive association between these two variables. There is
increasing profitability which depends upon many factors including liquidity.

10. S.P.Singh (2006) in his study performance of sugar mills in Uttar Pradesh by
ownership, size and location. Performance assessment of the sugar industry and setting
targets for the relatively inefficient mill to improve their efficiency and productivity is
crucial, as the interest of various stakeholders is largely dependent on its performance.
The performance of the mills is found to vary significantly across sector, plant size and
region. The private sector mills achieve the highest efficiency scores, followed by the
cooperative sector. It has also been observed that the mills with bigger plant size attain
relatively higher efficiency scores, moreover, the mills located in the WK found better
performer as compared to their counter parts of other regions. Labour and energy inputs
are found highly underutilized in almost all the inefficient mills.

11. Debasish Sur and Kaushik Chakraborty (2006) in his study financial performance
of Indian Pharmaceutical industry: The Indian Pharmaceutical industry has been
playing a very significant role in increasing the life expectancy and in decreasing the
mortality rate. It is the 5th largest in terms of 20 volume and the 14th largest in value
terms in the world. The comparative analysis the financial performance of Indian
Pharmaceutical industry for the period 1993 to 2002 by selecting six notable companies
of the industry. The comparison has been made from almost all points of view regarding
financial performance using relevant statistical tools.

12. S.K. Srivastava (2007) in his study Role of Organizational management and
managerial effectiveness in promoting performance and production. Management is a
universal Phenomenon. It is present in virtually all walks of life. Management is not

22
 confined merely to a factory or an office. Skillful management is needed in clubs,
families, Schools, Sports, teams and social functions like marriages, Picnics parties and
so on. Lack of proper management invariable results in chaos, wastage of time, money
and efforts. Although management is needed in various activities, it has special
significance with respect to business enterprises in the public as well as private sectors.
The productive efficiency of business firm depends a great deal on the Quality of
management. Also effectiveness of management is a major factor determining the
growth and prosperity of a business on which rests the process of economic growth.

13. Adolphus J. Toby (2007) in his study financial management modeling of the
performance of Nigerian quoted small and medium-sized Enterprises. It is
conceptualized that sustained growth, adequate liquidity and requisite profitability in
the SME sector is significantly related to their investment and financing decisions. The
empirical results show a significantly inverse relationship between current ratio and the
gross profit margin, holding the working capital gap constant. The quoted SMES
current assets ratio are significantly sensitive to commercial Banks „liquidity ratio, cash
reserve requirements, and loan-to-deposit ratio. Overall, over model results confirm
that the SME sector in Nigeria is still limited by the liquidity profitability dilemma,
efficiency constraints, Pecking order reversals, stringent monetary policy regimes and
a risk-over banking system.

14. Nataraj S. (2012) this paper analyses consumer attitudes towards Internet-based car
manufacturers‟ websites. Our aim was to obtain a theoretically and empirically
grounded initial reference position, against which later research can examine and
interpret the role played by changes in the variables representing consumer preferences
and shifts in these preferences, and thus helps the car manufacturers learn in depth the
ways to enhance customer satisfaction. Regression analysis shows that the two
independent variables significantly affect the satisfaction of Indian car buyers on the
Internet. Moreover, through appropriate interpretation of parametric change in the
regression analysis, we can explore the consequences of possible (future) changes in
Manufacturer’s website over Internet, especially with respect to maximizing the quality

23
 and easy navigation of website in order to retain a loyal customer. Online bookings and
online purchase are the current wave in Indian car industry.

15. Neeraj Kumar (2017) Present study is an attempt to test the size and profitability
relationship in the Indian automobile industry. The empirical evidence on size and
profitability is vast and showed variations in results; few reported positive and few
negative relationships between size and profitability. To analyze the relationship, the
linear regression model has been employed over the years 1998 to 2014 as well as cross-
sectionals. For profitability, ratio of net profit to total sales turnover and ratio of net
profit to net assets plus working capital has been used whereas firm size is represented
by total sales turnover and net assets. The study found mix results; time-series analysis
showed the positive relationship and cross section analysis showed that there exists no
relationship between firm size and profitability.

16. T. Rajesh (2013) This paper analysis the progress so far made through FDI in Indian
automobile industry The Foreign Direct Investment in Indian Automobile Industry has
opened up new avenues for the development of this important sector of Indian
industries. The liberalization of government policies regarding FDI in the automobile
industry of India has increased the scope of this industry. The first FDI player in the
Indian automobile industry was Suzuki. In 1980s this company entered into a joint
venture with Maruti Udyog, a state run enterprise. The then Indian government
permitted this company to enter the Indian automobile market in1983.In 1991, the
government of India liberalized its policies regarding the automobile industry of India
Foreign Direct Investment in the automotive industry of India was permitted. In 1993,
FDI was also allowed in the passenger car segment of Indian automobile industry.

17. Sarbapriya Ray (2011) This paper attempts to investigate the financial health of
automobile industry in India and test whether Altman’s Z score model can foresee
correctly the corporate financial distress of the automobile industry in Indian context
for the study period, 2003-04 to 2009-10. Present analysis reveals that automobile
industry under our study was just on the range of intermediate zone. In our study, Z

24
 values for all the seven years were more than 1.81 but less than 3(Z score= In between
1.81 and 3.0= Indeterminate). It is an alarming matter that Z score value is gradually
declining since 2007-08 after global recession hits Indian economy in general and
automobile industry in particular. This indicates that overall financial performance of
automobile sector in India is at present viable as Z score indicates but may lead to
corporate bankruptcy inner future unless regulatory measures are undertaken
immediately.

18. Joji Abey (2018) In this automobile industry has emerged as sunrise sector in the Indian
economy. It embarked a new journey in 1991 with de-licensing of the sector and
subsequently opening up for 100% FDI through the automatic route. The industry
produced a total 25,316,044 vehicles including passenger vehicles, commercial
vehicles, three wheelers, two wheelers and quadric cycle in April-March 2017 as
against 24,016,599 in April-March 2016, registering a growth of 5.41 percent over the
same period last year. Therefore, automobile companies have been selected for this
study in order to determine their profitability during the study period. A firm’s
Profitability is determined by leverage, size, age, working capital, asset turnover ratio
etc. Data required for the study is Secondary in nature. The secondary data have been
collected from the Capitalize database from2008-2017 for the select Motor Cycle
companies. The collected data is analyzed by making use of correlation and Multiple
Regression. The result reveals that there exist relationship between age, expenses to
income ratio and assets turnover ratio on profitability.

19. Sunil Luthraa (2019) This study focuses upon sustainable purchasing considered as
an important research field. Review of literature has helped to identify eight enablers
of sustainable purchasing and three performance outcomes of these enablers. These
identified sustainable purchasing enablers are: Legalizations; Social for responsibility;
Suppliers/vendors’ involvement; Suppliers/vendors’ education programs; Product
design sustainability; Customers’ involvement; Management support and Employees’
involvement. Three identified performance outcomes of these enablers are: Economic
benefits; Environmental benefits and Social benefits. ISM approach has been used to
understand the contextual relationships among these enablers, their interdependence

25
 and hierarchy levels to adopt sustainable purchasing practices in Indian automobile
industry.

20. P.R.C. Gopal (2015) The purpose of this research study is to analyze sustainable supply
chain (SSC) management practices for Indian automobile industry and to identify the
critical factors for its successful implementation. Despite the fact that SSC has been
frequently promoted as a means of improving business competitiveness, little empirical
evidence exists in the literature validating its positive link with organizational
performance. Sustainable supply chain practices (SSCP) not only help in reducing
environmental degradation but it also has social and economic implications (as per
tipple bottom line approach). For this purpose, empirical data is collected to measure
the SSCP prevailing in Indian automobile industry.

Conclusion –
A literature review is an account of the previous efforts and achievements of researchers on a
phenomenon. It helps to compare with other previous study. And a good review of literature is
the foundation for a Good Research.

References –

• https://www.crowdwriter.com/blog/types-of-literature-review
• Research Paper

26
 CHAPTER NO – 3
RESEARCH METHODOLOGY

27
Introduction of Research
The word “research” originated from the old French word “recerchier” meaning to
search and search again. It literally implies repeating a search for something and implicitly
assumes that the earlier search was not exhaustive and complete in the sense that there is still
scope for improvement. Research in common parlance refers to a search for knowledge. It may
be defined as a scientific and systematic search for pertinent information on a specific
topic/area. In fact, research is an art of scientific investigation. The Advanced Learner’s
Dictionary of Current English lays down the meaning of research as “a careful investigation or
inquiry especially through search for new facts in any branch of knowledge”. Redman and
Mory define research as “a systematized effort to gain new knowledge”. Some people consider
research as a movement, a movement from known to unknown. It is actually a voyage of
discovery.

Research is a scientific approach of answering a research question, solving a problem or

generating new knowledge through a systematic and orderly collection, organization, and
analysis of information with an ultimate goal of making the research useful in decision-making.
Systematic research in any field of inquiry involves three basic operations-

1. Data collection: It refers to observing, measuring, and recording information.

2. Data analysis: It refers to arranging and organizing the collected data so that we may
be able to find out what their significance is and generalize about them.
3. Report writing: It is an inseparable part and a final outcome of a research study. Its
purpose is to convey information contained in it to the readers or audience.

Meaning of Research
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions to determine whether they fit the formulating
hypothesis.

A research is a framework or blueprint for conducting the a research project. It details the
procedures necessary for obtaining the information needed to structure or solve research
problem. Research consist of the prefix Re which means to search, examine or try. Research is

28
an essential and powerful tool in leading man towards progress. In fact research is an art of
scientific investigation.

Definition of Research

• According to Maylor and Blackmon (2005) “A process of finding out information and
investigating the unknown to solve a problem”.

• According to Grinnell in 1993 it is composed of two-syllable word Re and Search that

describe careful, systematic, patient study, investigation for facts or principles.

• According to Lundberg in 1942 it draws parallel between social process and scientific
process in our daily life. According to writer it includes systematic observations,
classification and interpretation of data.

• According to Burns in 1997 it’s a systematic investigations to find answers of problem.

• According to Neuman “A collection of methods and methodologies that researchers

apply systematically to produce scientifically based knowledge about the social world.”

• According to Mouly, “actually research is simply the process of arriving at dependable

solutions to problems through the planned and systematic collections, analysis and
interpretation of data.”

• According to the American sociologist Earl Robart Babbie, “research is a systematic

inquiry to describe, explain, predict, and control the observed phenomenon.

Types of Research
There are different types of research based on different aspects such as:

29
 • Purpose,
• Process,
• Outcome

Types of research coming under the category purpose are:

1. Descriptive research
2. Analytical research

Descriptive Research

Descriptive research includes fact-finding enquiries of different kinds such as what, why, when,
who, how and all. The main aim of this research is description of the characteristics of a
phenomena at present. For description researchers use frequencies, averages and other
statistical calculations. The methods used by this researchers involves survey method of all
kind including comparative and correlational method.

Analytical Research

Analytical research mainly carrying out analysis on a phenomena and which involves
secondary data. The aim of this research is to understand phenomena by discovering and
measuring causal relations among them. Here the researchers use facts or information’s readily
available to them in order to analyze to make a critical evaluation of the context. It work within
the constraints variables. It also tries to explain existing state of affairs from available data.

Types of research coming under the category process are:

1. Qualitative research
2. Quantitative research

Qualitative Research

Qualitative research is handled with qualitative phenomena that involves quality or kind. The
research designed to find out how people feel or what people often think are coming under this
research. It is important in behavioural sciences. Its aim is to discover the underlying motives
of human behaviour through detailed description. The data in the form of words, pictures or
objects and all.

30
Quantitative Research

Quantitative research is based on the measurement of quantity or amount. It can only be

expressed in terms of quantity. Researcher use tools such as questionnaire or equipment to
collect data and all aspect of the study are carefully designated before data is collected. Here
data in the form of numbers or statistics and this data is more efficient and able to test.

Types of research coming under the category outcome are:

1. Applied or action research

2. Fundamental or basic or pure research

Applied Research

It is defined as a research which is used to answer a specific question, solve a specific problem
or to gain better understanding. It also known as action research. It aims at finding solution for
an immediate problem facing in society or an organization through systematic inquiry
involving practical application of science, based on the level and type of involvement
researcher can differ this research based on the scope of work.

Fundamental or Basic or Pure Research

This research is concerned with generalization and formulation of theory. It is done for the
intellectual pleasure on learning and it has no commercial value attached to the discoveries that
result from basic research. This type of research has limited direct applications but in which
researcher has careful control over the research setting.

Research Process
Step 1: Identify the Problem

The first step in the process is to identify a problem or develop a research question. The research
problem may be something the agency identifies as a problem, some knowledge or information
that is needed by the agency, or the desire to identify a recreation trend nationally.

31
Step 2: Review the Literature

Now that the problem has been identified, the researcher must learn more about the topic under
investigation. To do this, the researcher must review the literature related to the research
problem. This step provides foundational knowledge about the problem area. The review of
literature also educates the researcher about what studies have been conducted in the past, how
these studies were conducted, and the conclusions in the problem area. In the obesity study, the
review of literature enables the programmer to discover horrifying statistics related to the long-
term effects of childhood obesity in terms of health issues, death rates, and projected medical
costs. In addition, the programmer finds several articles and information from the Centers for
Disease Control and Prevention that describe the benefits of walking 10000 steps a day. The
information discovered during this step helps the programmer fully understand the magnitude
of the problem, recognize the future consequences of obesity, and identify a strategy to combat
obesity (i.e., walking).

Step 3: Clarify the Problem

Many times the initial problem identified in the first step of the process is too large or broad in
scope. In the step 3 of the process, the researcher clarifies the problem and narrows the scope
of the study. This can only be done after the literature has been reviewed. The knowledge
gained through the review of literature guides the researcher in clarifying and narrowing the
research project. In the example, the programmer has identified childhood obesity as the
problem and the purpose of the study. This topic is very broad and could be studied based on
genetics, family environment, diet, exercise, self-confidence, leisure activities, or health issues.
All of these areas cannot be investigated in a single study; therefore, the problem and purpose
of the study must be more clearly defined. The programmer has decided that the purpose of the
study is to determine if walking 10000 steps a day for three days a week will improve the
individual’s health. This purpose is more narrowly focused and researchable than the original
problem.

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Step 4: Clearly Define Terms and Concepts

Terms and concepts are words or phrases used in the purpose statement of the study or the
description of the study. These items need to be specifically defined as they apply to the study.
Terms or concepts often have different definitions depending on who is reading the study. To
minimize confusion about what the terms and phrases mean, the researcher must specifically
define them for the study. In the obesity study, the concept of “individual’s health” can be
defined in hundreds of ways, such as physical, mental, emotional, or spiritual health. For this
study, the individual’s health is defined as physical health. The concept of physical health may
also be defined and measured in many ways. In this case, the programmer decides to more
narrowly define “individual health” to refer to the areas of weight, percentage of body fat, and
cholesterol. By defining the terms or concepts more narrowly, the scope of the study is more
manageable for the programmer, making it easier to collect the necessary data for the study.

Step 5: Define the Population

Research projects can focus on a specific group of people, facilities, park development,
employee evaluations, programs, financial status, marketing efforts, or the integration of
technology into the operations. For example, if a researcher wants to examine a specific group
of people in the community, the study could examine a specific age group, males or females,
people living in a specific geographic area, or a specific ethnic group. Literally thousands of
options are available to the researcher to specifically identify the group to study. The research
problem and the purpose of the study assist the researcher in identifying the group to involve
in the study. In researcher terms, the group to involve in the study is always called the
population. Defining the population assists the researcher in several ways. First, it narrows the
scope of the study from a very large population to one that is manageable. Second, the
population identifies the group that the researcher’s efforts will be focused on within the study.
This helps ensure that the researcher stays on the right path during the study. Finally, by
defining the population, the researcher identifies the group that the results will apply to at the
conclusion of the study.

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Step 6: Develop the Instruments Plan

The plan for the study is referred to as the instrumentation plan. The instrumentation plan serves
as the road map for the entire study, specifying who will participate in the study; how, when,
and where data will be collected; and the content of the program. In the obesity study, the
researcher has decided to have the children participate in a walking program for six months.
The group of participants is called the sample, which is a smaller group is selected from the
population specified for the study. The study cannot possibly include every 10 to 12-year-old
child in the community, so a smaller group is used to represent the population. The researcher
develops the plan for the walking program, indicating what data will be collected, when and
how the data will be collected, who will collect the data, and how the data will be analyzed.
The instrumentation plan specifies all the steps that must be completed for the study. This
ensures that the programmer has carefully thought through all these decisions and that she
provides a step-by-step plan to be followed in the study.

Step 7: Collect Data

Once the instrumentation plan is completed, the actual study begins with the collection of data.
The collection of data is a critical step in providing the information needed to answer the
research question. Every study includes the collection of some type of data-whether it is from
the literature or from subjects-to answer the research question. Data can be collected in the
form of words on a survey, with a questionnaire, through observations, or from the literature.
In the obesity study, the programmers will be collecting data on the defined variables: weight,
percentage of body fat, cholesterol levels, and the number of days the person walked a total of
10000 steps during the class.

The researcher collects these data at the first session and at the last session of the program.
These two sets of data are necessary to determine the effects of the walking program on weight,
body fat, and cholesterol level. Once the data are collected on the variables, the researcher is
ready to move to the final step of the process, which is the data analysis.

34
Step 8: Analyse the Data

All the time, effort, and resources dedicated to steps 1 through 7 of the research process
culminate in this final step. The researcher finally has data to analyse so that the research
question can be answered. In the instrumentation plan, the researcher specified how the data
will be analysed. The researcher now analyses the data according to the plan. The results of
this analysis are then reviewed and summarized in a manner directly related to the research
questions. In the obesity study, the researcher compares the measurements of weight,
percentage of body fat, and cholesterol that were taken at the first meeting of the subjects to
the measurements of the same variables at the final program session. These two sets of data
will be analysed to determine if there was a difference between the first measurement and the
second measurement for each individual in the program. Then, the data will be analysed to
determine if the differences are statistically significant. If the differences are statistically
significant, the study validates the theory that was the focus of the study. The results of the
study also provide valuable information about one strategy to combat childhood obesity in the
community.

Objectives of Study
Following are the objectives of the study given below:

• To calculate the important financial ratio of the organisation as a part of the comparative
statement thereby to understand the changes the needs the trends in the firm’s financial
position.

• To assess the performance of Cipla Ltd Company on the basis of earnings and also to
evaluate the solvency position of the company.

• To identify the financial strengths and weaknesses of the Cipla Ltd Company.

• To give the appropriate suggestions to the investors. To help them to make more
informed decisions.

35
Need of Study
We can analyse the current position of the company in the market by analysing these reports.
We can analyse or predict the profitability of the future success of the company. It helps in
deciding whether the company is investible or not.

Investors use financial statement analysis to assess a company’s profitability, growth potential,
and financial stability. This analysis enables investors to identify companies that are likely to
generate good returns on investment and avoid companies that are risky.

Sources and Method Used For Study

Primary Data:

Primary data refers to the information collected directly from the first-hand experience. This is
the information that you gather for the purpose of a particular research project. Primary data is
original data that is collected directly from the source for a specific research purpose. It is
gathered first hand by researchers through methods such as surveys, interviews, observations,
experiments, or focus groups.

Secondary Data:

Secondary data is the data that have been already collected for another purpose. The data is
collected by someone else instead of the researcher himself. Secondary data is data that has
been collected and compiled by someone other than the researcher for a purpose other than the
current research.

Sources of Collection of Secondary Data

This type of data has already been collected by someone else and has already passed through
statistical process. This type of data has been collected from the following resources:

• Internet
• MCOM First Year Book
• www.cipla.com

For this study Secondary Data has been used for research topic.

36
Chapter Scheme
Chapter 1: Introduction

Chapter 2: Review of literature

Chapter 3: Research methodology

Chapter 4: Profile of Organization

Chapter 5: Data Analysis and Interpretation

Chapter 6: Findings, Suggestions and Conclusion

Conclusion –
A research methodology is concerned with the systematic approach to solving a research
problem by applying appropriate research methods. We get that from this chapter objective of
the study, need of study and sources and methods used for study.

References –

• https://theintactone.com/2019/03/03/brm-u1-topic-6-steps-in-
research-process/
• https://www.slideshare.net/SWATHYMA1/different-types-of-
research-ppt
• https://www.analyticssteps.com/blogs/different-types-research-
methods
• https://www.slideshare.net/HitEshMunJal2/research-process-
72966554

37
 CHAPTER NO – 4

PROFILE OF THE ORGANIZATION

38
History

Cipla was founded in Mumbai in 1935 by Khwaja Abdul Hamied as the Chemical, Industrial
and Pharmaceutical Laboratories. In July 1984, the name of the company was changed to
‘Cipla’.

Upon Hamied’s death in 1972, his son Yusuf Hamied, a Cambridge-educated chemist, took
over the company.

In 1995, Cipla launched Deferiprone, the world’s first oral iron chelator.

In 1999, Cipla joined the Indian Pharmaceutical Alliance as a founding member in an effort to
promote the development of generic drugs in India. During the AIDS epidemic in the early
2000s, Hamied reverse-engineered a three-drug antiretroviral medication that was sold for
about $12000 per year to create a cheaper version that sold for $304 per year. This drug was
sold to African charities and governments. It is estimated that “at one time, as much as 40
percent of the AIDS patients in poor countries took Cipla drugs”.

During the avian flu pandemic in 2006, Cipla was able to reverse-engineer the drug Tamiflu
and sell it for significantly lower prices.

In 2013 Cipla acquired the South African company Cipla – Medpro. Its name was changed to
Cipla Medpro South Africa Limited and was kept as a subsidiary. At the time of the acquisition,
Cipla-Medpro had been a distribution partner for Cipla and was South Africa’s third-biggest
pharmaceutical company. The company had been founded in 2022 under the name Enaleni
Pharmaceuticals Ltd. In 2005, Enaleni bought all the shares of Cipla-Medpro, which had been
a joint venture between Cipla and Medpro Pharmaceuticals, a South African generics company;
in 2008, it changed its name to Cipla-Medpro. In September 2023, it was announced Cipla

39
South Africa had acquired the Midrand-headquartered healthcare products manufacturer, Actor
Pharma.

In September 2015, Cipla acquired InvaGen Pharmaceuticals and Exelan Pharmaceuticals, two
American pharmaceutical companies, for 555 million dollars.

In 2019 Cipla entered digital therapeutics by partnering with Wellthy Therapeutics in India and
Brandmed in South Africa.

Board of Directors
Dr. Y. K. Hamied

Non-Executive Chairman

Dr Y.K. Hamied is Non-Executive Chairman of the Company, and represents the second
generation of Cipla’s founding family. A world-renowned scientist, Dr Hamied obtained his
PhD in organic chemistry in 1960 from the University of Cambridge under the tutelage of the
Nobel laureate Lord Alexander Todd.

Mr. M. K. Hamied

Non-Executive Vice-Chairman

Mr. M. K. Hamied is a science graduate from Bombay University and has vast and varied
experience in all functions of the Company including production, technical areas, quality
management and general administration.He is Non-Executive Vice-Chairman of the Company
and represents the second generation of Cipla’s founding family.

Ms. Samina Hamied

Executive Vice-Chairperson

Ms Samina Hamied is the Executive Vice-Chairperson of the Company, and represents the third
generation of Cipla’s founding family. Samina is a MSc in International Accounting and
Finance from the London School of Economics and Political Science. An alumna of the London
School of Economics, she has in the past worked in UK and the US with the leading global
firm.

40
Mr. Umang Vohra

Managing Director and Global Chief Executive Officer

Umang Vohra is Managing Director and Global Chief Executive Officer (MD and GCEO) of
Cipla since September 2016. Umang joined Cipla in October 2015 as its Global Chief Financial
Officer, and from January 2016 to August 2016 was Cipla’s Global Chief Operating Officer.

Mr. S. Radhakrishnan

Non-Executive Director

Mr S. Radhakrishnan is a Non-Executive Director of the Company and is a qualified Chartered

Accountant. He possesses rich experience in financial, commercial, legal and allied areas.

Mr. Ashok Sinha

Independent Director

Mr Ashok Sinha is an Independent Non-Executive Director of the Company. He has a B.Tech.

degree in Electrical Engineering from the Indian Institute of Technology (IIT), Kanpur and Post
Graduate Diploma in Management from the Indian Institute of Management (IIM), Bangalore
with specialisation in Finance.

Mr. Adil Zainulbhai

Independent Director

Mr Adil Zainulbhai is an Independent Non-Executive Director and Lead Independent Director

of the Company. He is the Chairman of the Quality Council of India (QCI) and Board Advisor
to US India strategic partnership forum.

Mr. P. R. Ramesh

Independent Director

Mr P. R. Ramesh graduated in Commerce from Osmania University, Hyderabad and is a Fellow

Member of the ICAI. He retired as the Director of Deloitte & Touche Assurance &
Enterprise Risk Services India on 31st March 2020 and has also served as a member of Deloitte
Global Board and Deloitte Asia Pacific Board.

41
Ms. Punita Lal

Independent Director

Ms Punita Lal is an Independent Non-Executive Director of the Company. She is a B.A. (Hons.)
Economics graduate from St. Stephen’s College, Delhi and an MBA from Indian Institute of
Management, Kolkata.

Mr. Robert Stewart

Independent Director

Robert Stewart is an Independent Non-Executive Director of the Company. He has over 34

years of experience in the biopharmaceutical industry having worked with leading companies
such as Roche, Abbott, Watson / Actavis / Allergan, Amneal and Theramex. Currently, Robert
is the Chief Executive Officer at Theramex Ltd, a global specialty pharmaceutical company.

Dr. Mandar Vaidya

Independent Director

Dr. Mandar is a medical doctor, and a management graduate from the Jamnalal Bajaj Institute
of Management Studies, India.

Products And Services

Cipla sells active pharmaceutical ingredients to other manufacturers as well as pharmaceutical
and personal care products, including the anti-depressant escitalopram oxalate, lamivudine, and
fluticasone propionate. Cipla is the world’s largest manufacturer of antiretroviral drugs.

In July 2020, the company announced the introduction of Gilead Sciences’ Remdesivir under
the brand name CIPREMI in India after reaching a voluntary licensing agreement with the
parent company and DCGI approval for “restricted emergency use” in COVID-19 treatment of
patients in critical condition.

The company’s diverse portfolio of drugs spread across therapies is the results of its
uncompromising commitment to research, quality and manufacturing.

42
Therapies

Forty years ago, Cipla started its fight against heart disease with innovative and high-class
drugs. Over the years, Cipla has been developing several products that help treat various
diseases like MI, angina, heart failure, hypertension, arrhythmia, lipid abnormalities and
diabetes, and obesity.

Our Offerings

• Generics and Branded Generics

The company’s Generics business in India has contributed 19% of the domestic pharmaceutical
revenues with 4000+ partners covering the entire country. The business operates within an
extremely competitive environment in a highly fragmented market with 5000+ pharmaceutical
players. Despite competitive pressures and on-going regulatory challenges, the business
delivered strong growth in the year under review and continued its leadership position in the
market. The company’s focus lies in strengthening its position in Tier 3 and Tier 4 towns along
with expanding the product portfolio to cater to the needs of its patients. The Generics business
continues to operate in a challenging regulatory environment with uncertain policies governing
trade margins, branded generics, DPCO and product approvals.

• Speciality

Over last 2 years, Cipla has been focusing towards establishing its Engine 2.0 of growth based
on the foundation of Innovation and Speciality medicine. The company has committed
significant capital towards acquiring and in-licensing assets which address unmet clinical needs
of patients.

The focus has been to establish a franchise of speciality medicines in the areas of Respiratory,
CNS and Critical Care with a focus to build Institutional Speciality business. The operations
of a Speciality focused company differ significantly from the operations of a generic company
and hence to establish a robust business model, Cipla Technologies LLC (Cip Tec) has been
established with its headquarters in San Diego, California. This also gives the company ability
to participate and operate in the biotech and life sciences innovation hub in the US.

43
 • Consumer Health

With a vision of becoming the most preferred consumer healthcare company in India, Cipla
Health Limited (CHL) ( a Cipla subsidiary) has focused on driving innovation and simplifying
healthcare by creating solutions which address unmet consumer needs and seamlessly mesh in
their lifestyle. Nicotex, if flagship smoking cessation brand, is the undisputed market leader in
its category and has supported thousands of smokers on their journey of quitting smoking.
Activkids ImmunoBoosters, a kids’ nutritional supplement in chocolate format, became the
first Cipla product to be available in modern trade (such as Big Bazaar, D Mart, Reliance,
Spencers, Tesco), e-commerce (such as Amazon, Flipkart, Big Basket) high end grocers, B2B
channels (Walmart C&C, Metro C&C, Reliance B2B). It also partnered with kidzania, a kids’
edutainment property active in Mumbai and Delhi with a permanent establishment to generate
aided trials. Brand participated in School contact programs to garner reach and sampling to 7
lakh kids. Cofsils cough drops, launched as a part of brand extension strategy across all trade
channels (chemist, grocer and pan plus) at H1 price point, enabled Cipla Health to enter the
Herbal throat lozenge category. Within 15 months of launch, CHL’s probiotic brand UnoBiotics
became the #1 player in LRGG (Lactobacillus Rhamnosus CG) market. With this increased
product portfolio, CHL is poised to achieve its mission of “Improving Consumers’ Lives,
Everyday”.

Manufacturing
The company continuously work towards enhancing the affordability of medicines worldwide
by investing in its manufacturing capital through facilities that are cGMP compliant and
approved globally.

Cipla has leveraged and invested in its manufacturing capital through facilities that are cGMP
compliant and approved globally. This has facilitated the company to attain a global leadership
position in the pharmaceutical sector.

Cipla has over 1500 products in 65 therapeutic categories available in over 50 dosage forms.
These capabilities range from the development of a simple molecule to highly complex multi-
chiral centres molecule with a distinction of affordability and highest quality. The company’s
capacities include its own facilities and in licensed facilities which support both generic and
the biotech business. The company’s investments in manufacturing capital include

44
development of new drug delivery systems, facilitation of infrastructure supporting API and
formulation developments and strengthening of platform technologies.

Cipla has scaled up several key APIs through yield improvement, cycle time reduction and cost
improvement projects. The continued focus on process and operational improvements has
resulted in reducing solvent losses to less than 15% thereby reducing environmental impact.
Similarly, batch size increase of about 45 products in formulations was carried out during the
year resulting in improvement in productivity. Cipla is now on a path to digitise the
manufacturing operations by integrating all process-related machines to server to capture real-
time process parameters for better operations control, improvement in productivity, and
enhanced compliance status.

Cipla’s state-of-the-art manufacturing facilities are cGMP compliant in conformity with

national and international standards. Several dosage forms and APIs manufactured at these
facilities continue to be approved by major international regulatory agencies including the US
FDA, MHRA (UK), TGA (Australia), Federal Ministry of Health-Germany, MCC (South
Africa), the Department of Health (Canada), INVIMA (Columbia) ANVISA (Brazil), the
Danish Medical Agency, WHO and Ministry of Health of various countries.

Operations
Cipla has 34 manufacturing units in 8 locations across India and presence in over 80 countries.
Exports accounted for 48% ₹4948 crore (equivalent to ₹84 billion or US$1.1 billion in 2023)
of its revenue for the 2013-14 fiscal year on R&D activities. The primary focus areas for R&D
were development of new formulations, drug-delivery systems, and APIs. Cipla also cooperates
with other enterprises in areas such as consulting, commissioning, engineering, project
appraisal, quality control, know-how transfer, support, and plant supply.

During the FY 2013-14, the company incurred ₹1285 crore (equivalent to ₹21 billion or
US$260 million in 2023) on employee benefit expenses.

According to Cipla’s 2022-23 annual report, the company had over 25000 employees, out of
which 14.3% were women.

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Listing and Shareholding
The equity shares of Cipla are listed on the Bombay Stock Exchange, where it is a constituent
of the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent
of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock
Exchange.

As of December 31, 2022, the promoter group, Y. K. Hamied and his family, held around
33.61% equity shares in Cipla. Individual shareholders hold approximately 14.72% of its
shares. SBI Mutual Fund, LIC etc. are the largest non-promoter shareholders in the Company.
In January 2024, Samina Hamied resigned from her position as the Executive Vice Chairperson
of Cipla. She continued to serve the company as a non-executive director subject to rotational
retirement.

Shareholders (as on 31- December- 2022) Shareholding

Promoter Group 33.61%
Mutual funds 14.09%
Financial Institution/Banks/Insurance 4.96%
Foreign Institutional Investor (FII) 28.39%
Corporate Bodies 0.53%
Individuals 14.72%
NRIs/OCBs 0.88%
ADRs/GDRs NIL
Others 2.82
Total 100.00%

Awards and Recognitions

• In 1980, Cipla won Chemexcil Award for Excellence for exports.
• In 2006, Cipla won Dun & Bradstreet American Express Corporate Awards.
• In 2007, Forbes included Cipla in the 200 ‘Best under a billion’ list of the best small Asian
companies.
• In 2012, Cipla received the Thomson Reuters India Innovation Award.
• In 2015, Cipla stood third in the India’s Most Reputed Brands (Pharmaceutical) list, in a
study conducted by BlueBytes, a Media Analytics firm in association with TRA Research,
a brand insights organization (both part of the Comniscient Group).

46
Conclusion –
In this chapter we know about the overall information of Cipla Ltd Company. We get the
manufactures, their services, their products, offerings, brands. Also know about their board of
directors, chairman, vice chairman.

References –

• https://www.cipla.com/our-offerings
• https://www.globaldata.com/company-profile/cipla-
ltd/#:~:text=Cipla%20manufactures%20metered%2Ddose%20inhal
er,in%20Mumbai%2C%20Maharashtra%2C%20India
• https://en.m.wikipedia.org/wiki/Cipla

47
 CHAPTER NO – 5
DATA ANALYSIS AND INTERPRETATION

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Introduction

Data analysis and interpretation is the process of assigning meaning to the collected
information and determining the conclusions, significance and implications of the findings. It
is an important and exciting step in the process of research. In all research studies, analysis
follows data collection.
Data analysis and interpretation is the next stage after collecting data from empirical methods.
The dividing line between the analysis of data and interpretation is difficult to draw as the two
processes are symbolic and merge imperceptibly. The analysis is a critical examination of the
assembled data. Analysis of data leads to generalization.
Interpretation refers to the analysis of generalizations and results. A generalization involves
concluding a whole group or category based on information drawn from particular instances or
examples.
Interpretation is a search for the broader meaning of research findings. Analysis of data is to be
made regarding the purpose of the study. Data should be analysed in light of hypothesis or
research questions and organized to yield answers to be research questions. Data analysis can
be both descriptive as well as a graphic in presentation. It can be presented in charts, diagrams,
and tables.
The data analysis includes various processes, including data classification, coding, tabulation,
statistical analysis of data, and inference about causal relations among variables.

Meaning of “Analysis” of Data

The term “analysis” means the computation of certain measures or indices along with searching
for patterns of relationships that exists among the data group. Mere collection of data cannot
be the aim of any research activity. With the help of collected data, a researcher tries to draw
conclusions make generalisations, establish relationships between two or more variables and
test the hypothesis. Under the process of analysis of data, some statistical methods are used to
make data meaningful and self – explanatory. The process of analysis of data makes the data
speak about itself.
The analysis of data may be defined as “a process under which the relationships or differences
supporting or conflicting with the original or new hypothesis, should be subjected to statistical

49
tests of significance, to determine with what validity the data can be said to indicate any
conclusion”. It is only through a systematic analysis that the underlying features of the data are
revealed and valid generalisations are arrived at. Facts and figures never speak for themselves.
Data analysis is in short a method of putting facts and figures to solve the research problem.
It refers to the technique of collecting raw data, analysing it and transforming it into information
that can be used to reach a specific conclusion.

Meaning of Interpretation of Data

Data Interpretation refers to the process of using diverse analytical methods to review data and
arrive at relevant conclusions. The interpretation of data helps researchers to categorize,
manipulate, and summarize the information on order to answer critical questions.
The importance of data interpretation is evident, and this is why it needs to be done properly.
Data is very likely to arrive from multiple sources and has a tendency to enter the analysis
process with haphazard ordering. Data analysis tends to be extremely subjective. That is to say,
the nature and goal of interpretation will vary from business to business, likely correlating to
the type of data being analysed. While there are several types of processes that are implemented
based on the nature of individual data, the two broadest and common categories are
“quantitative and qualitative analysis”.

Importance of Interpretation of Data

Data interpretation holds significant importance to researchers, analysts, and economists for
the following reasons:
• Informed Decision-Making: It empowers individuals and organizations to make
decisions based on evidence and facts rather than intuition.
• Problem Solving: Data interpretation enables the identification of patterns, trends, and
issues, facilitating effective problem-solving and process optimization.
• Performance Assessment: It plays a crucial role in evaluating the performance of
employees, products, processes, or strategies, which is vital for fostering improvement
and growth.
• Cost Control: It is necessary to interpret past information to assess the scope of cost
reduction to attain efficiency.

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 Statement of Increase and Decrease in Assets and Liabilities For the Year 2013-14

Particulars 31st March 2013 31st March 2014 Increase or Change in

Decrease Percentage
Equity and Liabilities
Shareholders Funds
Share Capital 160.58 160.58 - -
Reserves and Surplus 8708.94 9931.06 (+) 1222.12 (+) 14.03%
Non-Current Liabilities
Long term borrowings 0.55 0.43 (-) 0.12 (-) 21.82%
Deferred Tax Liabilities 281.20 311.20 (+) 30 (+) 10.67%
Other Long Term Liabilities 30.00 30.00 - -
Long Term Provisions 47.34 73.99 (+) 26.65 (+) 56.29%
Current Liabilities
Short Term Borrowings 965.26 876.91 (-) 88.35 (-) 9.153%
Trade Payables 827.09 962.56 (+) 135.47 (+) 16.38%
Other Current Liabilities 242.62 333.20 (+) 90.58 (+) 37.33%
Short Term Provisions 229.63 244.07 (+) 14.44 (+) 6.288%
Total Liabilities 11493.21 12924 (+) 1430.79 (+) 12.45%

Assets
Non-Current Assets
Fixed Assets
Tangible Assets 3418.29 3519.59 (+) 101.3 (+) 2.963%
Intangible Assets - 4.60 - -
Capital Work-in-Progress 339.99 319.64 (-) 20.35 (-) 5.985%
Intangible Assets under 10.35 57.05 (+) 46.7 (+) 451.21%
Development
Non-Current Investments 514.36 3328.28 (+) 2813.92 (+) 547.07%
Long Term Loans and 373.72 535.30 (+) 161.58 (+) 43.24%
Advances
Other Non-Current Assets 61.57 61.57 - -
Current Assets
Current Investments 2087.46 258.85 (-) 1828.61 (-) 87.60%
Inventories 2343.37 2511.16 (+) 167.79 (+) 7.160%
Trade Receivables 1645.22 1728.10 (+) 82.88 (+) 5.038%
Cash and Bank Balances 105.07 46.04 (-) 59.03 (-) 56.18%
Short Term Loans and 591.53 515.56 (-) 75.97 (-) 12.84%
Advances
Other Current Assets 2.28 38.26 (+) 35.98 (+) 1578.07%
Total Assets 11493.21 12924 (+) 1430.79 (+) 12.45%

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Analysis of comparative Statement of Cipla Ltd For the Year 2013-2014

• As we can see in the above given comparative Balance Sheet of Cipla Ltd., the current
liabilities have been increased by ₹ 152.14 i.e. by 6.718% in the year 2014 over 2013.

• On the other hand, the current assets of the Cipla Ltd have decreased by ₹ 1676.96.
Now, such a change have a negative impact on the liquidity position of Cipla Ltd. This
because current liabilities have increased by 6.718%. Whereas the current assets have
been declined by 24.75%.

• Secondly the cash and bank balances of Cipla Ltd have declined by ₹ 59.03. This
indicates a negative cash position of the company. It further indicates towards the fact
that company might find it challenging to meet it’s short-term obligations.

• On the other hand, the long-term debts of Cipla Ltd have increased by ₹ 161.58 i.e. by
43.24%. On the other hand, the owner’s equity has improved by ₹ 1222.12 i.e. by
14.03%. This indicates that the company is not dependent more on the external lenders
thus leading to not a great financial risk for the firm.

• As we can see that there is a considerable increase seen in the non-current assets of the
company. Accordingly the non-current assets increased by ₹ 3103.15 i.e. by 65.76%
from the year 2013 to 2014. This was on account of the huge addition made to the no-
current investments by the company.

• Lastly, there is a gradual increase in non-current liabilities. Accordingly, the non-current

liabilities increase by ₹ 56.53 i.e. by 15.74%. This indicates that as compared to non-
current assets, non-current liabilities have increased in less proportion. So, this tells us
that the company’s liquidity position is quiet good.

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 Statement of Increase and Decrease in Assets and Liabilities For the Year 2014-15

Particulars 31st March 2014 31st March 2015 Increase or Change in

Decrease Percentage
Equity and Liabilities
Shareholders Funds
Share Capital 160.58 160.59 (+) 0.01 (+) 0.006%
Reserves and Surplus 9931.06 10929.56 (+) 998.5 (+) 10.05%
Non-Current Liabilities
Long term borrowings 0.43 0.41 (-) 0.02 (-) 4.65%
Deferred Tax Liabilities 311.20 330.59 (+) 19.39 (+) 6.23%
Other Long Term Liabilities 30.00 40.00 (+) 10 (+) 33.33%
Long Term Provisions 73.99 151.93 (+) 77.94 (+) 105.33%
Current Liabilities
Short Term Borrowings 876.91 1380.20 (+) 503.29 (+) 57.39%
Trade Payables 962.56 1496.60 (+) 534.04 (+) 55.48%
Other Current Liabilities 333.20 352.42 (+) 19.22 (+) 5.768%
Short Term Provisions 244.07 349.52 (+) 105.45 (+) 43.20%
Total Liabilities 12924 15191.82 (+) 2267.82 (+) 17.55%

Assets
Non-Current Assets
Fixed Assets
Tangible Assets 3519.59 3468.33 (-) 51.26 (-) 1.457%
Intangible Assets 4.60 125.29 (+) 120.69 (+) 2624
Capital Work-in-Progress 319.64 339.00 (+) 19.36 (+) 6.069%
Intangible Assets under 57.05 21.71 (-) 29.34 (-) 51.41%
Development
Non-Current Investments 3328.28 4036.99 (+) 708.71 (+) 21.29%
Long Term Loans and 535.30 576.71 (+) 41.41 (+) 7.736%
Advances
Other Non-Current Assets 61.57 65.13 (+) 3.56 (+) 5.782%
Current Assets
Current Investments 258.85 384.11 (+) 125.26 (+) 48.39%
Inventories 2511.16 3289.20 (+) 778.04 (+) 30.98%
Trade Receivables 1728.10 2058.91 (+) 330.81 (+) 19.14%
Cash and Bank Balances 46.04 82.76 (+) 36.72 (+) 79.76%
Short Term Loans and 515.56 589.96 (+) 74.4 (+) 14.43%
Advances
Other Current Assets 38.26 153.72 (+) 115.46 (+) 301.78%
Total Assets 12924 15191.82 (+) 2267.82 (+) 17.55

53
Analysis of comparative Statement of Cipla Ltd For the Year 2014-2015

• The capital is increased in year 2015 compared to year 2014, also increased their
reserves 10.05% compared to previous year.
• But their borrowings is decreased compared to previous year and its beneficial for the
company.
• The current assets of Cipla ltd have increased by ₹ 1460.69 by 28.65% in the year 2015
over 2014.
• On the other hand, the current liabilities have increased by 1162 i.e. by 48.08%. Now,
as the current assets and liabilities both increase simultaneously there will be no effect
on company if they increase by the same amount otherwise it will impact the liquidity
position of the company depending upon the level of increase.
• The cash and bank balance of Cipla Ltd have increased by ₹ 36.72. This indicates a
positive cash position of the company.
• It further indicates towards the fact that company might not find it challenging to meet
its short-term obligations.
• On the other hand, the long term debts of Cipla Ltd have increased by ₹ 41.41 i.e. by
7.736%. On the other hand, the owner’s equity has improved by 9.89%. This indicates
that the company is not dependent more on the external lenders thus leading to not a
great financial risk for the firm.
• Finally, there is a considerable increase seen in the non-current assets of the company.
Accordingly, the non-current assets increased by ₹ 807.13 i.e. by 10.31% from the year
2014 to 2015. This was on account of the huge addition made to the non-current
investments by the company.
• Last but not the least, there is a gradual increase in the non-current liabilities.
Accordingly, the non-current liabilities. Accordingly, the non-current liabilities
increased by ₹ 107.31 i.e. by 25.81%.

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 Statement of Increase and Decrease in Assets and Liabilities For the Year 2015-16

Particulars 31st March 2015 31st March 2016 Increase or Change in

Decrease Percentage
Equity and Liabilities
Shareholders Funds
Share Capital 160.59 160.68 (+) 0.09 (+) 0.056%
Reserves and Surplus 10929.56 12178.61 (+) 1249.05 (+) 11.43%
Non-Current Liabilities
Long term borrowings 0.41 0.13 (-) 0.28 (-) 68.29%
Deferred Tax Liabilities 330.59 426.84 (+) 96.25 (+) 129.11%
Other Long Term Liabilities 40.00 40.00 - -
Long Term Provisions 164.41 132.00 (-) 32.41 (-) 19.71
Current Liabilities
Short Term Borrowings 1380.20 1131.68 (-) 248.52 (-) 18.006%
Trade Payables
Total out. Dues of micro 2.72 7.30 (+) 4.58 (+) 168.38%
enterprises and small
enterprises
Total out. Dues of creditors 1368.70 983.54 (-) 385.16 (-) 28.14%
other than micro enterprises and
small enterprises
Other Current Liabilities 483.02 529.08 (+) 46.06 (+) 9.536%
Short Term Provisions 331.62 429.60 (+) 97.98 (+) 29.55%
Total Liabilities 15191.82 16019.46 (+) 827.64 (+) 5.448

Assets
Non-Current Assets
Fixed Assets
Tangible Assets 3468.33 3724.44 (+) 256.11 (+) 7.384%
Intangible Assets 125.29 121.78 (-) 3.51 (-) 2.801%
Capital Work-in-Progress 339.00 512.81 (+) 173.81 (+) 51.27%
Intangible Assets under 21.71 37.91 (+) 16.2 (+) 74.62%
Development
Non-Current Investments 4036.99 4317.81 (+) 280.82 (+) 6.957%
Long Term Loans and 576.71 772.61 (+) 195.9 (+) 133.97%
Advances
Other Non-Current Assets 65.29 68.20 (+) 2.91 (+) 4.457%
Current Assets
Current Investments 384.11 539.00 (+) 154.89 (+) 40.32%
Inventories 3289.20 2918.47 (-) 370.73 (-) 11.27%
Trade Receivables 2052.38 1898.74 (-) 153.64 (-) 7.486%
Cash and Bank Balances 82.76 53.01 (-) 29.75 (-) 35.95%
Short Term Loans and 596.33 785.77 (+) 189.44 (+) 31.77%
Advances
Other Current Assets 153.72 268.91 (+) 115.19 (+) 74.93%
Total Assets 15191.82 16019.46 (+) 827.64 (+) 5.448

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Analysis of comparative Statement of Cipla Ltd For the Year 2015-2016

• As we can observe in the comparative balance sheet given above, the current liabilities
have decreased by ₹ 485.06 for the year 2016 over 2015.
• On the other hand, the current assets of Cipla Ltd have declined by ₹ 94.6. Now, this
situation indicates that there is a zero impact on the company’s liquidity position. This
is because if current assets have also decreased but this is only possible if they decrease
by the same level of decrease otherwise it depends upon the level of decrease.
• Secondly, the cash and bank balance of Cipla Ltd have been decreased by ₹ 29.75 i.e.
by 35.95%. This indicates a negative cash position of the company. It further indicates
towards the fact that company might find it challenging to meet it’s short-term
obligations.
• On the other hand, the long-term debts of Cipla Ltd have increased by ₹ 195.9 i.e. by
133.97%. On the other hand, the owner’s equity has improved by ₹ 1249.14. This
indicates that the company is not dependent more on the external lenders thus leading
to not a great financial risk for the firm.
• As we can see there is a considerable increase by ₹ 922.24 in the non-current assets.
This was on account of huge addition made to the non-current investments by the
company.
• Lastly, there is a gradual increase in the non-current liabilities of the company.
Accordingly, the non-current liabilities increase by ₹ 63.56 i.e. by 11.871%.

Conclusion –

Data analysis and interpretation is an important of working with data sets in any research. They
both go hand in hand, as the process of data interpretation involves the analysis of data. Data
interpretation is very important, as it helps to acquire useful information from a pool of
irrelevant ones while making informed decision. It is found useful for individuals, business,
and researchers.

References –
• www.moneycontrol.com

56
 CHAPTER NO – 6
FINDINGS, SUGGESTIONS AND CONCLUSION

57
Findings:

• As we compare the financial statement for 3 years of Cipla Ltd Company For the year
2013 to 2016.
• We can see that in year 2013-14 current assets of Cipla Ltd Company have decreased
and their negative impact on the liquidity position of the company.
• They also indicate a negative cash position of the company. Then company might find
it challenging to meet its short-term obligations.
• In this year 2013-14 indicate that as compared to non-current assets, non-current
liabilities have increased in less proportion. So, this tells us that the company’s liquidity
position is quite good.
• In the year 2014-15 indicate a positive cash position of the company as compare to year
2013-14.
• In this year 2014-15 assets and liabilities both are simultaneously there will be no effect
on company.
• In year 2015-16 both the current assets and current liabilities are decrease by the same.
• They also indicate that their negative cash position of the company.
• Then company might find it challenging to meet its short-term obligations.
• In this 3 years Cipla Ltd Company’s financial position many up and downs.

58
Suggestions:

• The company has to maintain more cash to meet out the requirement of current
liabilities.
• The company should control the overhead expenses.
• The company should sell the unnecessary assets which are of no use.
• For improving the liquidity position the company should change their payment cycle.

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Conclusion:
Financial statement analysis is the process of reviewing and analysing a company’s financial
statements to make better economic decisions to earn income in future. These statements
include the income statement, balance sheet, statement of cash flow. Financial statement
analysis is a method or process involving specific techniques for evaluating risks, performance,
financial health and future prospects of an organization.

Financial Statements Analysis is an analysis which highlights important relationships in the

financial statements. It focuses on evaluation of past operations as revealed by the analysis of
basic statements. Financial Statement Analysis embraces the methods used in assessing and
interpreting the result of past performance and current financial position as they relate to
particular factors of interest in investment decisions. It is an important means of assessing past
performance and in forecasting and planning future performance.

A literature review is an overview of the previously published works on a topic. The term can
refer to a full scholarly paper or a section of a scholarly work such as a book, or an article.
Either way, a literature review is supposed to provide the researcher/author and the audiences
with a general image of the existing knowledge on the topic under question.

A literature review can be a type of review article. In this sense, a literature review is a scholarly
paper that presents the current knowledge including substantive findings as well as theoretical
and methodological contributions to a particular topic. Literature reviews are secondary
sources and do not report new or original experimental work. Most often associated with
academic-oriented literature, such reviews are found in academic journals and are not to be
confused with book reviews, which may also appear in the same publication. Literature reviews
are a basis for research in nearly every academic field.

Research is a scientific approach of answering a research question, solving a problem or

generating new knowledge through a systematic and orderly collection, organization, and
analysis of information with an ultimate goal of making the research useful in decision-making.
Systematic research in any field of inquiry involves three basic operations-

1. Data collection: It refers to observing, measuring, and recording information.

60
 2. Data analysis: It refers to arranging and organizing the collected data so that we may
be able to find out what their significance is and generalize about them.
3. Report writing: It is an inseparable part and a final outcome of a research study. Its
purpose is to convey information contained in it to the readers or audience.

Data analysis and interpretation is the process of assigning meaning to the collected
information and determining the conclusions, significance and implications of the findings. It
is an important and exciting step in the process of research. In all research studies, analysis
follows data collection.
Data analysis and interpretation is the next stage after collecting data from empirical methods.
The dividing line between the analysis of data and interpretation is difficult to draw as the two
processes are symbolic and merge imperceptibly. The analysis is a critical examination of the
assembled data. Analysis of data leads to generalization.

61
BIBLOGRAPHY

62
• https://www.wypages.com/2019/07/cipla-headquarters.html?m=1
• https://finpedia.co/bin/Cipla/
• https://unacademy.com/content/cbse-class-
11/studymaterial/accounting/significance-of-analysis-of-financial-
statements/#:~:text=It%20helps%20in%20deciding%20whether,or
%20bankruptcy%20of%20the%20company
• https://www.cipla.com/our-offerings
• https://www.globaldata.com/company-profile/cipla-
ltd/#:~:text=Cipla%20manufactures%20metered%2Ddose%20inhal
er,in%20Mumbai%2C%20Maharashtra%2C%20India
• https://en.m.wikipedia.org/wiki/Cipla
• https://theintactone.com/2019/03/03/brm-u1-topic-6-steps-in-
research-process/
• https://www.slideshare.net/SWATHYMA1/different-types-of-
research-ppt
• https://www.analyticssteps.com/blogs/different-types-research-
methods
• https://www.slideshare.net/HitEshMunJal2/research-process-
72966554
• https://accountlearning.com/tools-techniques-financial-statement-
analysis/
• https://www.crowdwriter.com/blog/types-of-literature-review
• M.Com Part I Financial Analysis And Control

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