Financial And

Ratio Analysis
Of Anphar Organics Private Limited, Jammu

By- Aviral Tripathi

 Introduction of the Study
Analysis of company provides an interesting outlook on a company and its
success in comparison to its industry competitors. While these types of
analysis provide a quantitative methodology of analyzing an organization,
it is important to remember that qualitative factors also play a role in
understanding the organizations well-being.

Assessing both the quantitative and qualitative factors will provide the
tools necessary to conduct an unbiased financial analysis of an
organization. Capital-budgeting decisions, corporate financial policies and
informed selections of investments are all products of financial analysis.
 Introduction of the Organization
ANPHAR ORGANICS PRIVATE LIMTED
JAMMU(J&K)
It is a unit of Madras Pharmaceuticals, Chennai
They are the contract manufacturer of bulk medicines and
pharmaceutical formulations.
It was incorporated on 29 November 1994
Introductory Capital 3,50,00,000 INR
Director Mr. Ogra Selvanathan Kumaran
Managing Director Mr. Sulaiman Abdulhai Mohammed
Wholetime Director Mr. Shailender Gupta
 MADRAS PHARMACEUTICALS
CHENNAI
One of the leading WHO-GMP Certified pharmaceutical formulation
manufacturers in India.
Madras Pharmaceuticals Started its manufacturing activity in 1979 with
the aim of manufacturing and marketing quality pharmaceutical
formulations at affordable prices.
They Undertake contract manufacturing activity for various leading pharmaceutical
companies in India. Like Lupin Laboratories, Ranbaxy Laboratories, Mankind
Pharmaceuticals, etc.
Director - Krishnamurthy Balakumar and Alagappan
 Objectives of the Study
Analyzing the financial performance of the Pharmaceutical Companies due to the
structural changes in Finance.

Analyzing the sources of finance in Pharmaceutical Industry and studying how far the
low profitability are responsible for the fall of internal sources

The adequacy of the profits earned by the company

To give suggestion on the basis of Liquidity, Profitability, Efficiency and Leverage

analysis

The future growth outlook of the company.

Research Methodology
Type of Research Analytical Research
Method of data Primary Data Surveys & Personal
Collection Interviews
Secondary Data - Internet searches
& Progress reports
Area of the Study Anphar Organics Private Limited ,
Jammu, J&K
Sample Size Two Years Data
2014-2015 & 2015-2016
Tools Applied Horizontal Analysis & Ratio Analysis
 Horizontal Analysis of Profit & Loss Statement

Particulars 2015-2016 2014-2015 Value Percentag

Change e Change

Total Revenue 2973.43 2607.61 365.82 14.03%

Total expenses 2474.71 2171.62 303.09 13.96%
Profit before tax 498.72 435.98 62.74 14.39%
Net Profit/Loss for 351.73 406.28 -54.55 -13.43%
the period
 Horizontal Analysis of Balance Sheet

Particulars 2015-2016 2014-2015 Value Percentage

Change Change
EQUITY AND LIABILITIES

Shareholder`s Fund 630.96 325.82 305.14 93.65%

Non-Current Liabilities 235.17 542.17 -307 -56.62%
Current Liabilities 774.95 663.92 111.03 16.72%
Total 1641.08 1531.91 109.17 7.13%
ASSETS

Non-Current Assets 773.78 692.22 81.56 11.78%

Current Assets 867.3 839.68 27.62 3.29%
Total 1641.08 1531.91 109.17 7.13%
 Ratio Analysis
Current Ratio= Current Asset Current Ratio
Current Liability
1.3

1.25
2014-2015 = 839.68 / 663.92 = 1.26 : 1
1.2
2015-2016 = 867.3 / 774.95 = 1.12 : 1
1.15

1.1

1.05

1
2014-2015 2015-2016
 Interpretation:
A current ratio of 2:1 considered to be a
satisfactory ratio. the current ratio of the year 2014-15 is
1.264731 and 2015-16 is 1.119169. The ratio is Decreasing
2015-16 it is less than the ideal ratio.
Liquid Ratio = Liquid Asset
Liquid Ratio
Current Liability
Liquid Asset = Current Asset Stock
0.92
0.9

2014-2015 = 601.68 / 663.92 = 0.810.88

0.86
:1
2015-2016 = 627.3 / 774.95 = 0.910.84
:1
0.82
0.8
0.78
0.76
2014-2015 2015-2016
Interpretation:
For satisfactory position Liquid ratio is 1:1.
In the Anphar Organics, the Liquid ratio of the year 2014-15
is 0.809472, 2015-16 is 0.906254 in every financial year but
it is just a little less than the ideal ratio.
 Findings
Financial and Ratio Analysis are very important for
management to make their budgets.
The liquidity of the company is depended upon the
profitability of the company.
Forecasting of future sales are always done on the basis of
past sales and increasing trends of the product.
The efficiency of a business concern is measured by the
amount of profits earned.
 Suggestions
Need for Increasing Profitability
The inadequate liquidity position of the industry is paying
the way to so many troubles and disadvantages.
Pharmaceutical Firms should turn to Rural Areas
Need for the increasing of the internal sources of funds
Need to reduce the dependence upon external sources of
funds
 Conclusion
Investment higher than the net worth, which means
operations are being funded by Current liabilities & some
loans.
Very efficient fixed asset utilization.
Anphar Organics is maintaining 80 to 90 percentage
liquidity from other sources not from profit.
We found Moderate negative relationship between the
measures the liquidity with corporate profitability.
 Limitations
As data provide to us, has been taken from the secondary
source, it is not sure that collected data is perfectly
accurate.
Study based on historical data & records.
Since the companies follow different approaches in
computing the data and defining the concepts, there may
be certain discrepancies in the interpretation of data
Companywide factors - only use of numerical or
accounting information
Thank You