FUNDAMENTALS OF

FINANCIAL
MANAGEMENT

AUROBINDO PHARMA LTD

 GROUP MEMBER’S
ROLL NO. NAME
201 HIRPARA AYUSH JATINBHAI

202 HITIKSHA AGRAWAL

203 ISHA GUPTA

204 ISHANT BOHRA (LEFT)

205 ISHIKA SHARMA

206 JADAV ARCHI SANJAY

207 JAIN ANTRA BHARATBHAI

208 JAIN BHAVYA JITENDRA (LEFT)

209 JAIN HAPPY MAHENDRABHAI

210 JAIN SOUMYA HITESH

2 Presentation title 20XX

 INDEX

1 2 3 4 5
Introduction Financial Analysis of Calculation of Summary
objective , leverage using liquidity and
Statues of EBIT-EPS and Leverage ratios
capitalization Relevant ratios
and policy of
3 working Presentation title 20XX
Introduction
Aurobindo Pharma Ltd. is a leading Indian multinational
pharmaceutical company headquartered in Hyderabad,
India. Founded in 1986, it specializes in the research,
development, manufacturing, and marketing of generic
formulations and active pharmaceutical ingredients
(APIs). Aurobindo Pharma operates in over 150 countries
globally and is known for its commitment to quality,
affordability, and accessibility of healthcare.

4
Financial
objective ,
Statues of
capitalization
and policy of
working
• Financial objective : Achieving sustainable revenue and profit growth.Enhancing shareholder value
through dividend payments and capital appreciation.Efficient management of working capital to
optimize cash flow.Investing in research and development to innovate and expand product
portfolio.Prudent financial management to maintain a healthy balance sheet and credit profile.

• Status of Capitalization: The capitalization of Aurobindo Pharma Ltd. refers to the mix of equity and
debt used to finance its operations and growth initiatives. This can be assessed by analyzing the
company's capital structure, which includes the proportion of debt and equity in its funding. It's
important to review the company's balance sheet and financial statements to determine its current
capitalization status.

• Policy of Working Capital: Aurobindo Pharma Ltd.'s working capital policy involves managing its
current assets and liabilities efficiently to support its day-to-day operations. This includes optimizing
inventory levels, managing accounts receivable and payable effectively, and ensuring adequate cash
reserves. The specific policy details can be found in the company's financial reports or through
disclosures provided by management.

6 Presentation title 20XX

 Analysis of leverage using EBIT-EPS and Relevant
ratios

7 Presentation title 20XX

 “ Leverage Analysis using EBIT-EPS Analysis and
Relevant Ratios: EBIT-EPS analysis assesses the impact of
leverage (debt) on earnings per share (EPS) by comparing
the effect of different capital structures on the company's
earnings. This analysis helps determine the optimal capital
structure that maximizes shareholder value. Relevant ratios
for leverage analysis include Debt-to-Equity Ratio, Debt

”
Ratio, Interest Coverage Ratio, and Earnings per Share
(EPS).

8 Presentation title 20XX

 Calculation of liquidity and Leverage ratios

Current ratios = current asset / current libilities Debt to equity ratio = total debt /
= 9723.64 / 6673.35 equity

=1.45 = 87.31 / 17914.17

= 0.0048
Quick ratio = ( current assets – inventories) / Debt ratio = total debt / total asset
current libilities = 87.31 / 9723.64
= (9723.64 – 4125.26) / 6673.35
= 0.0089
= 0.83

President Chief Operations Officer

9 Presentation title 20XX

Summary
Analysing Aurobindo Pharma Ltd.’s leverage using the EBIT-EPS analysis
and relevant financial ratios provides valuable insights into the company's
capital structure, financial risk, and ability to generate shareholder value.
By understanding the relationship between earnings, debt, and EPS,
investors and stakeholders can make informed decisions regarding their
investment in Aurobindo Pharma Ltd. Additionally, monitoring key
financial ratios allows for ongoing assessment of the company's leverage
position and overall financial performance. A comprehensive
understanding of Aurobindo Pharma Ltd.’s leverage is essential for
assessing its long-term sustainability and growth prospects in the
competitive pharmaceutical industry.

10
Thank you