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Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
Komal dulam
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Komal dulam
Komal dulam
Komal dulam
Komal dulam
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Komal dulam
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Komal dulam

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  • 1. RANBAXY LABORATORIES LIMITED Page |1 A Project Report On Financial Analysis Of Submitted toGlobal Institute of Management Gujarat Technological University On 10/12/2012In Partial fulfillment of the requirements for the Accounting for Managers course in theMaster of Business Administration Programme Submitted By: komal Dulam (16) Ronak Modi (17) Asha Desai (18) Devika Singh (19) Ketul Patel (20) GLOBAL INSTITUTE OF MANAGEMENT
  • 2. RANBAXY LABORATORIES LIMITED Page |2 Preface The subject matter of financial management has been changing at a rapid phase about threedecades ago; the scope of financial management was circumscribed to the raising of funds, whenever neededand little significance use to attach to the financial decision making of problem solving the mid fifties, theemphasis shifted to wise utilization of funds. The „modern‟ thinking in the financial management gives greater importance of management anddecision makes policy. Today the financial mgt is not in a passive role of a scorekeeper of the accountinginformation and arranging funds. We as a student of management cannot keep ourselves isolated from this field of financialmanagement. We need to know the practical application of or other theoretical knowledge so we haveprepared a financial report on “Ranbaxy Laboratories Ltd.” and have tried to analysis each and every reportof annual report of five successive years and put it in logical format as per my analysis. GLOBAL INSTITUTE OF MANAGEMENT
  • 3. RANBAXY LABORATORIES LIMITED Page |3 Acknowledgement We are very much thankful to Ranbaxy laboratories Ltd. for these all type of informationis taken from the last five year financial statement. We are also thankful to our Director Mr. Kishor Bhunsali who encourages us for studying thefinance. We are mostly thankful to our Prof. Dhaval Patel for helping us in our practical studies in oursem-1 (MBA) program and also very much thankful to her valuable suggestion, guidance in preparing thisreport. Also thankful to our parents for providing oriented and for all encouragement. GLOBAL INSTITUTE OF MANAGEMENT
  • 4. RANBAXY LABORATORIES LIMITED Page |4 Executive summary Operating expenses may be defined as those that pertain to the production process, or, moregenerally, the process of carrying out the business. Such processes include all those pertaining to purchases,human resources, production and marketing and selling. Conventionally, expenses incurred on rising orusing finances are not considered as operational expenses. There are a few more - amortization, write-offs,prior-period expenses, etc. Often, the distinction between operating and non-operating expenses is clear. Butat times there is some ambiguity regarding the nature of the expense. As a result, the basic framework of data capture at CMIE avoids the classification of expense headsas operational and non-operational. However, disclosure practices of companies often compel us to use theterm "operational expenses". Expenses that can be posted without the use of such a term are postedappropriately into CMIEs detailed classification of expense items and, the remaining "operational expenses”are clubbed into one of the two data-fields: "Other operational expenses of industrial enterprises" or "Otheroperational expenses of non-financial services enterprises". This data-field includes all operating expenses of an industrial enterprise that are not alreadycovered in any of the other data field. These are likely to be industry-specific operational expenses.Examples of such expenses can be preservation expenses, laboratory expenses, testing expenses etc. GLOBAL INSTITUTE OF MANAGEMENT
  • 5. RANBAXY LABORATORIES LIMITED Page |5 IndexSr.No. Content Page no. Chapter :1 1 5 Introduction of Company Chapter-2: 2 10 Comparative Balance sheet and Analysis of Balance Sheet Chapter-3: 3 15 Comparative Profit and Loss Account and Analysis of Profit & Loss Statement Chapter-4: 4 19 Common Size Statements Chapter 5: 5 23 Trend Analysis (Index Analysis) Chapter 6: 6 26 Analysis of Cash flow Statement Chapter 7: 7 27 Ratio Analysis Chapter 9: 9 36 Contemporary Issues in Accounting of the company GLOBAL INSTITUTE OF MANAGEMENT
  • 6. RANBAXY LABORATORIES LIMITED Page |6 CHAPTER: 1 (Company profile)1.1 Introduction of Company Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanesecompany Shionogi. The name Ranbaxy is a portmanteau word from the names of its first owners Ranbir andGurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir Singh and Gurbax Singh.After Bhai Mohan Singhs son Parvinder Singh joined the company in 1967, the company saw a significanttransformation in its business and scale. His sons Malvinder Mohan Singh and Shivinder Mohan Singh soldthe company to the Japanese company Daiichi Sankyo in June 2008. Ranbaxy was established in 1961 and went public in the year 1973. It has global sales of US$1340 million for the year ended on 31st December, 2006. It has the largest market in USA (sales appx. US$380 million); then come Europe and BRICS (Brazil, Russia, India, China, South Africa).1.2Company Details: Type - Public Founded - 1961 Headquarters- Gurgaon, Haryana, India Employees - 1100 in R&D Website - www.ranbaxy.com For enquiries contact: M. Giridhar Venugopal Director – Global Business Development & Acquisitions Ranbaxy Laboratories Limited Plot No. 90, Sector 32, Gurgaon – 122001 (Haryana), India E-mail: business.development@ranbaxy.com Registered Office A-41, Industrial Area Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali - 160 071 (Punjab), INDIA GLOBAL INSTITUTE OF MANAGEMENT
  • 7. RANBAXY LABORATORIES LIMITED Page |71.3Products Using the finest R&D and Manufacturing facilities, Ranbaxy Laboratories Limited manufacturesand markets generic pharmaceuticals, value added generic pharmaceuticals, branded generics, activePharmaceuticals (API) and intermediates. The Company remains focused on ascending the value chain in the marketing of pharmaceuticalsubstances and are determined to bring in increased revenues from dosage forms sales. Ranbaxys diverse product basket of over 5,000 SKUs available in over 125 countries worldwideencompasses a wide therapeutic mix covering a majority of the chronic and acute segments. Healthcaretrends project that the chronic treatment segments will outpace the acute treatment segments, primarilydriven by a growing aging population and dominance of lifestyle diseases. Their robust performance inCardiovasculars, Central Nervous System, Respiratory, Dermatology, Orthopedics, Nutritionals and Urologysegments, clearly indicates that the Company has strengthened its presence in the fast-growing chronic andlifestyle disease segments. Top 10 Molecules (2012) • Valacyclovir • Simvastatin • Donepezil • Atorvastatin & Combinations • Co-amoxyclav & Combinations • Ciprofloxacin & Combinations • Ketorolac Tromethamine • Imipenem+Cilastatin • Ginseng+Vitamins • Loratadine & Combinations GLOBAL INSTITUTE OF MANAGEMENT
  • 8. RANBAXY LABORATORIES LIMITED Page |81.4 Company History: Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and one of theworlds top 100 pharmaceutical companies. Long a specialist in the preparation of generic drugs,Ranbaxy is also one of the worlds top 10 in that pharmaceutical category as well. Yet, with Indiasagreement to apply international patent law at the beginning of 2005, Ranbaxy has begun convertingitself into a full-fledged research-based pharmaceutical company. A major part of this effort has been the establishment of the companys own research anddevelopment center, which has enabled the company to begin to enter the new chemical entities (NCE)and novel drug delivery systems (NDDS) markets. In the mid-2000s, the company had a number ofNCEs in progress, and had already launched its first NDDS product, a single daily dosage formulationof ciprofloxacin. Ranbaxy is a truly global operation, producing its pharmaceutical preparations inmanufacturing facilities in seven countries, supported by sales and marketing subsidiaries in 44countries, reaching more than 100 countries throughout the world. The United States, which aloneaccounts for nearly half of all pharmaceutical sales in the world, is the companys largest internationalmarket, representing more than 40 percent of group sales. In Europe, the companys purchase of RPG(Aventis) S.A. makes it the largest generics producer in that market. The company is also a leading generics producer in the United Kingdom and Germany andelsewhere in Europe. European sales added 16 percent to the companys sales in 2004. Ranbaxys othermajor markets include Brazil, Russia, and China, as well as India, which together added 26 percent tothe groups sales. Ranbaxy posted revenues of $1.18 billion in 2004. The company, which remainscontrolled and led by the founding Singh family, is listed on the National Stock Exchange of India inMumbai. GLOBAL INSTITUTE OF MANAGEMENT
  • 9. RANBAXY LABORATORIES LIMITED Page |9 1.5 Board of DirectorsAt the helm of the entire operations is the experience and able direction of the people who make it allhappen. Ranbaxy acknowledges their inspiring stewardship and indefatigable work. Dr. Tsutomu Une Mr. Arun Sawhney Mr. Takashi Shoda Chairman CEO & Managing Director Non Executive & Non Executive & Non Independent Director Non Independent Director Dr. Kazunori Hirokawa Dr. Anthony H. Wild Mr. Rajesh V. Shah Non Executive & Independent Director Independent Director Non Independent Director Mr. Akihiro Watanabe Mr. Percy K. Shroff Independent Director Independent Director GLOBAL INSTITUTE OF MANAGEMENT
  • 10. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 10+CHAPTER: 2 (Balance sheet 2008-2012) Balance Sheet of Ranbaxy Laboratories of 2007-2011 ------------------ in Rs. Cr. ------------------- Particulars Dec 11 Dec 10 Dec 09 Dec 08 Dec 07Sources Of Funds Total Share 211.00 210.52 210.21 210.19 186.54 Capital Equity Share 211.00 210.52 210.21 210.19 186.54 Capital Share Application 0.67 6.60 175.85 175.66 1.18 Money Preference 0.00 0.00 0.00 0.00 0.00Share Capital Reserves 1,713.16 4,915.28 3,748.54 3,330.92 2,350.68 Revaluation 0.00 0.00 0.00 0.00 0.00 Reserves Net worth 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 Secured 229.59 195.39 175.83 162.07 365.07 Loans Unsecured 4,103.94 4,065.33 3,172.55 3,563.30 3,137.96 Loans Total Debt 4,333.53 4,260.72 3,348.38 3,725.37 3,503.03 Total 6,258.36 9,393.12 7,482.98 7,442.14 6,041.43 LiabilitiesApplication Of FundsGross Block 3,094.07 2,857.63 2,620.92 2,386.75 2,261.48Less: Accum. 1,222.07 1,145.52 1,027.52 930.07 791.96DepreciationNet Block 1,872.00 1,712.11 1,593.40 1,456.68 1,469.52Capital Work 222.62 330.18 414.92 428.77 327.42in ProgressInvestments 3,410.79 3,804.44 3,833.69 3,618.03 3,237.55Inventories 1,655.23 1,489.91 1,230.48 1,198.52 976.07 GLOBAL INSTITUTE OF MANAGEMENT
  • 11. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 11Sundry 3,689.95 1,292.63 1,534.65 1,024.54 882.91DebtorsCash and 66.90 22.44 25.56 49.86 69.38Bank BalanceTotal Current 5,412.08 2,804.98 2,790.69 2,272.92 1,928.36AssetsLoans and 2,382.72 1,470.45 1,967.65 2,351.98 882.99AdvancesFixed 1,871.14 2,689.85 728.56 1,885.08 111.07DepositsTotal CA,Loans & 9,665.94 6,965.28 5,486.90 6,509.98 2,922.42AdvancesDeferred 0.00 0.00 0.00 0.00 0.00CreditCurrent 5,157.68 2,491.08 3,082.89 3,840.11 1,177.35LiabilitiesProvisions 3,755.31 927.82 763.03 731.20 738.14Total CL & 8,912.99 3,418.90 3,845.92 4,571.31 1,915.49ProvisionsNet Current 752.95 3,546.38 1,640.98 1,938.67 1,006.93AssetsMiscellaneous 0.00 0.00 0.00 0.00 0.00ExpensesTotal Assets 6,258.36 9,393.11 7,482.99 7,442.15 6,041.42 GLOBAL INSTITUTE OF MANAGEMENT
  • 12. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 12 Comparative Balance sheet of Ranbaxy Laboratories of 2007-2011 ------------------ in Rs. Cr. ------------------- Dec Dec Dec Dec % % % % Particulars 11- 10-09 09-08 08-07 11-10 10-09 09-08 08-07 10Sources Of Funds Total Share 0.22800 0.14747 0.00951 12.6782 0.48 0.31 0.02 23.65 Capital 7 2 5 5Equity Share 0.22800 0.14747 0.00951 12.6782 0.48 0.31 0.02 23.65 Capital 7 2 5 5 Share - - 0.10816 14786.4 Application -5.93 -169.25 0.19 174.48 89.8485 96.2468 3 4 Money Preference - - - - - - - -Share Capital - 1166.7 - 31.1251 12.5376 41.7002 Reserves 3202 417.62 980.24 4 65.1462 8 8 7 .12 Revaluation - - - - - - - - Reserves - 1178.3 - 24.1329 11.2417 46.4217 Net worth 3207 997.8 417.83 7 62.4965 3 5 6 .57 17.5034 11.1243 8.49015 -Secured Loans 34.2 19.56 13.76 -203 5 8 9 55.6058 Unsecured 38.6 0.94973 28.1407 13.5546 892.78 -390.75 425.34 -10.966 Loans 1 8 7 7 72.8 1.70886 27.2472 - 6.34707 Total Debt 912.34 -376.99 222.34 1 6 1 10.1195 7 - Total 1910.1 1400.7 - 25.5264 0.54876 23.1850 3134 40.84 Liabilities 4 1 33.3729 6 7 7 .76Application Of Funds 236.Gross Block 236.71 234.17 125.27 8.27 9.03 9.81 5.54 44Less: Accum. 76.5 118.00 97.45 138.11 6.68 11.48 10.48 17.44Depreciation 5Net Block 159. 118.71 136.72 -12.84 9.34 7.45 9.39 -0.87 GLOBAL INSTITUTE OF MANAGEMENT
  • 13. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 13 89 -Capital Work 107. -84.74 -13.85 101.35 -32.58 -20.42 -3.23 30.95in Progress 56 -Investments 393. -29.25 215.66 380.48 -10.35 -0.76 5.96 11.75 65 165.Inventories 259.43 31.96 222.45 11.10 21.08 2.67 22.79 32Sundry 2,39 -242.02 510.11 141.63 185.46 -15.77 49.79 16.04Debtors 7.32Cash and Bank 44.4 -3.12 -24.30 -19.52 198.13 -12.21 -48.74 -28.13Balance 6Total Current 2,60 14.29 517.77 344.56 92.95 0.51 22.78 17.87Assets 7.10Loans and 912. 1,468.9 -497.20 -384.33 62.04 -25.27 -16.34 166.37Advances 27 9 - - 1,961.2 1,774.0 1,597.2Fixed Deposits 818. 1,156.5 -30.44 269.20 -61.35 9 1 0 71 2Total CA, - 2,70 1,478.3 3,587.5Loans & 1,023.0 38.77 26.94 -15.72 122.76 0.66 8 6Advances 8Deferred - - - - - - - -CreditCurrent 2,66 2,662.7 -591.81 -757.22 107.05 -19.20 -19.72 226.17Liabilities 6.60 6 2,82Provisions 164.79 31.83 -6.94 304.75 21.60 4.35 -0.94 7.49Total CL & 5,49 2,655.8 -427.02 -725.39 160.70 -11.10 -15.87 138.65Provisions 4.09 2 -Net Current 1,905.4 2,79 -297.69 931.74 -78.77 116.11 -15.36 92.53Assets 0 3.43Miscellaneous - - - - - - - -sExpenses - 1,910.1 1,400.7 Total Assets 3,13 40.84 -33.37 25.53 0.55 23.19 2 3 4.75 GLOBAL INSTITUTE OF MANAGEMENT
  • 14. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 14 Interpretation Total of the shareholder funds and liabilities increase continuously in 2009 to 2011 because of growth of the company. Total liabilities have been increasing till 2011. Current liabilities have also been increased in 2011. The total assets also increase year which shows that company Purchases investments and assets every year. Its shows company‟s good profitability and financial soundness. The Net Block of a company was continuously increased for but in 2010 it was decreased. GLOBAL INSTITUTE OF MANAGEMENT
  • 15. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 15CHAPTER: 3 (Profit and Loss account 2007-11)Profit and Loss Account of Ranbaxy lab.Particulars Dec 11 Dec 10 Dec 09 Dec 08 Dec 07IncomeSales Turnover 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39Excise Duty 22.58 40.96 15.90 24.17 51.37Net Sales 7,686.59 5,646.37 4,781.59 4,652.04 4,293.02Other Income -3,990.57 562.45 485.66 -1,587.64 551.13Stock 135.72 161.43 33.96 115.59 40.66AdjustmentsTotal Income 3,831.74 6,370.25 5,301.21 3,179.99 4,884.81ExpenditureRaw Materials 2,523.08 2,181.22 1,916.58 2,049.30 1,861.17Power & Fuel 194.98 132.75 109.57 108.83 90.35CostEmployee Cost 845.24 608.28 582.50 472.65 420.04OtherManufacturing 112.69 96.68 89.94 94.65 82.60ExpensesSelling and 1,579.37 1,332.70 1,306.25 1,402.77 1,341.03Admin ExpensesMiscellaneous 1,283.54 185.14 158.07 383.26 123.90ExpensesPreoperative Exp 0.00 0.00 0.00 0.00 0.00CapitalizedTotal Expenses 6,538.90 4,536.77 4,162.91 4,511.46 3,919.09Operating Profit 1,283.41 1,271.03 652.64 256.17 414.59PBDIT -2,707.16 1,833.48 1,138.30 -1,331.47 965.72Interest 69.44 54.19 39.47 145.83 93.43PBDT -2,776.60 1,779.29 1,098.83 -1,477.30 872.29Depreciation 274.08 228.35 148.20 154.47 118.73Other Written 7.83 0.00 0.00 0.00 0.00OffProfit Before Tax -3,058.51 1,550.94 950.63 -1,631.77 753.56Extra-ordinary 15.44 21.88 111.42 17.76 35.46itemsPBT (Post Extra- -3,043.07 1,572.82 1,062.05 -1,614.01 789.02ord Items) GLOBAL INSTITUTE OF MANAGEMENT
  • 16. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 16Tax 6.69 415.48 488.86 -574.24 156.69Reported Net -3,052.05 1,148.73 571.98 -1,044.80 617.72ProfitTotal Value 4,015.82 2,355.55 2,246.33 2,462.16 2,057.93AdditionPreference 0.00 0.00 0.00 0.00 0.00DividendEquity Dividend 0.07 84.21 0.00 0.00 317.15Corporate -0.32 13.99 0.00 0.00 53.90Dividend TaxShares in issue 4,220.00 4,210.41 4,204.17 4,203.70 3,730.71(lakhs)Earnings Per -72.32 27.28 13.61 -24.85 16.56Share (Rs)Equity Dividend 0.03 40.00 0.00 0.00 170.00(%) GLOBAL INSTITUTE OF MANAGEMENT
  • 17. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 17 Comparative Profit and loss account of Ranbaxy ltd. 2007-2011 ------------------ in Rs. Cr. -------------------Particulars Dec Dec Dec Dec % % % % 11-10 10-09 09-08 08-07 11-10 10-09 09-08 08-07IncomeSales Turnover 2,021.84 889.84 121.28 331.82 35.55 18.55 2.59 7.64Excise Duty -18.38 25.06 -8.27 -27.20 -44.87 157.61 -34.22 -52.95Net Sales 2,040.22 864.78 129.55 359.02 36.13 18.09 2.78 8.36 - -Other Income 4,553.02 76.79 2,073.30 2,138.77 -809.50 15.81 -130.59 -388.07Stock -25.71 127.47 -81.63 74.93 -15.93 375.35 -70.62 184.28Adjustments - -Total Income 2,538.51 1,069.04 2,121.22 1,704.82 -39.85 20.17 66.71 -34.90ExpenditureRaw Materials 341.86 264.64 -132.72 188.13 15.67 13.81 -6.48 10.11Power & Fuel 62.23 23.18 0.74 18.48 46.88 21.16 0.68 20.45CostEmployee 236.96 25.78 109.85 52.61 38.96 4.43 23.24 12.52CostOtherManufacturing 16.01 6.74 -4.71 12.05 16.56 7.49 -4.98 14.59ExpensesSelling andAdmin 246.67 26.45 -96.52 61.74 18.51 2.02 -6.88 4.60ExpensesMiscellaneous 1,098.40 27.07 -225.19 259.36 593.28 17.13 -58.76 209.33ExpensesPreoperativeExp 0.00 0.00 0.00 0.00 - - - -CapitalizedTotal 2,002.13 373.86 -348.55 592.37 44.13 8.98 -7.73 15.11ExpensesOperating 12.38 618.39 396.47 -158.42 0.97 94.75 154.77 -38.21Profit - -PBDIT 4,540.64 695.18 2,469.77 2,297.19 -247.65 61.07 -185.49 -237.87Interest 15.25 14.72 -106.36 52.40 28.14 37.29 -72.93 56.08 - -PBDT 4,555.89 680.46 2,576.13 2,349.59 -256.05 61.93 -174.38 -269.36Depreciation 45.73 80.15 -6.27 35.74 20.03 54.08 -4.06 30.10 GLOBAL INSTITUTE OF MANAGEMENT
  • 18. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 18Other Written 7.83 0.00 0.00 0.00 - - - -OffProfit Before - - 600.31 2,582.40 -297.20 63.15 -158.26 -316.54Tax 4,609.45 2,385.33Extra-ordinary -6.44 -89.54 93.66 -17.70 -29.43 -80.36 527.36 -49.92itemsPBT (Post - -Extra-ord 4,615.89 510.77 2,676.06 2,403.03 -293.48 48.09 -165.80 -304.56Items)Tax -408.79 -73.38 1,063.10 -730.93 -98.39 -15.01 -185.13 -466.48Reported Net - - 576.75 1,616.78 -365.69 100.83 -154.75 -269.14Profit 4,200.78 1,662.52Total Value 1,660.27 109.22 -215.83 404.23 70.48 4.86 -8.77 19.64AdditionPreference 0.00 0.00 0.00 0.00 - - - -DividendEquity -84.14 84.21 0.00 -317.15 -99.92 - - -100.00DividendCorporate -14.31 13.99 0.00 -53.90 -102.29 - -- -100.00Dividend TaxShares in issue 9.59 6.24 0.47 472.99 0.23 0.15 0.01 12.68(lakhs)Earnings Per -99.60 13.67 38.46 -41.41 -365.10 100.44 -154.77 -250.06Share (Rs)Equity -39.97 40.00 0.00 -170.00 -99.93 - - -100.00Dividend (%) Interpretation  Total income is more than total expenditure in every year.  Net profit has been increased in 2011 around 620%.  In 2011 the earning per share shows in negative change. It represent losses, non beneficial to the company. GLOBAL INSTITUTE OF MANAGEMENT
  • 19. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 19CHAPTER:4 Common size Statement of Ranbaxy ltd. Balance Sheet of Ranbaxy Laboratories of 2007-2011 ------------------ in Rs. Cr. ------------------- Particulars Dec 11 Dec 10 Dec 09 Dec 08 Dec 07Sources Of Funds Total Share 3.37149 2.241215 2.809175 2.824322 3.08768 Capital Equity Share 3.37149 2.241215 2.809175 2.824322 3.08768 Capital Share Application 0.010706 0.070264 2.3499996 2.360343 0.019532 Money Preference 0 0 0 0 0Share Capital Reserves 27.37394 52.32851 50.094214 44.75756 38.90933 Revaluation 0 0 0 0 0 Reserves Net worth 30.75614 54.63999 55.253388 49.94222 42.01654 Secured 3.668533 2.08014 2.3497323 2.177734 6.042775 Loans Unsecured 65.57533 43.27987 42.396879 47.88005 51.94068 Loans Total Debt 69.24386 45.36001 44.746612 50.05778 57.98346 Total 100 100 100 100 100 LiabilitiesApplication Of FundsGross Block 49.43899 30.42262 35.025037 32.07071 37.43292Less: Accum. 19.527 12.19532 13.73141 12.49733 13.10884DepreciationNet Block 29.91199 18.2273 21.293627 19.57338 24.32408Capital Work 3.557162 3.51513 5.5448424 5.761373 5.419587in ProgressInvestments 54.49974 40.50245 51.232061 48.61539 53.58922Inventories 26.4483 15.86173 16.443694 16.10449 16.1563 GLOBAL INSTITUTE OF MANAGEMENT
  • 20. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 20Sundry 58.96033 13.76147 20.508513 13.76672 14.61428DebtorsCash and 1.06897 0.238899 0.3415747 0.669968 1.148406Bank BalanceTotal Current 86.47761 29.8621 37.293782 30.54117 31.91899AssetsLoans and 38.07259 15.65456 26.29497 31.6035 14.6156AdvancesFixed 29.89825 28.63642 9.7362151 25.32978 1.838475DepositsTotal CA,Loans & 154.4484 74.15308 73.324968 87.47445 48.37306AdvancesDeferred 0 0 0 0 0CreditCurrent 82.41264 26.52029 41.198639 51.59947 19.48797LiabilitiesProvisions 60.0047 9.877666 10.19686 9.825118 12.21799Total CL & 142.4173 36.39796 51.395498 61.42459 31.70596ProvisionsNet Current 12.03111 37.75512 21.929469 26.04986 16.66711AssetsMiscellaneous 0 0 0 0 0ExpensesTotal Assets 100 100 100 100 100 GLOBAL INSTITUTE OF MANAGEMENT
  • 21. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 21 Profit and loss account (common size statement)Particulars Dec 11 Dec 10 Dec 09 Dec 08 Dec 07IncomeSales Turnover 100.00 100.00 100.00 100.00 100Excise Duty 0.29 0.72 0.33 0.52 1.182444Net Sales 99.71 99.28 99.67 99.48 98.81756Other Income -51.76 9.89 10.12 -33.95 12.68602Stock 1.76 2.84 0.71 2.47 0.93592AdjustmentsTotal Income 49.70 112.01 110.50 68.00 112.4395ExpenditureRaw Materials 32.73 38.35 39.95 43.82 42.84077Power & Fuel 2.53 2.33 2.28 2.33 2.079694CostEmployee Cost 10.96 10.70 12.14 10.11 9.668561OtherManufacturing 1.46 1.70 1.87 2.02 1.901303ExpensesSelling and 20.49 23.43 27.23 30.00 30.86809Admin ExpensesMiscellaneous 16.65 3.26 3.29 8.20 2.851954ExpensesPreoperative Exp 0.00 0.00 0.00 0.00 0CapitalizedTotal Expenses 84.82 79.77 86.77 96.48 90.21036Operating Profit 16.65 22.35 13.60 5.48 9.543112PBDIT -35.12 32.24 23.73 -28.47 22.22913Interest 0.90 0.95 0.82 3.12 2.15059PBDT -36.02 31.29 22.90 -31.59 20.07854Depreciation 3.56 4.02 3.09 3.30 2.73295Other Written 0.10 0.00 0.00 0.00 0OffProfit Before Tax -39.67 27.27 19.82 -34.90 17.34559Extra-ordinary 0.20 0.38 2.32 0.38 0.816225itemsPBT (Post Extra- -39.47 27.65 22.14 -34.52 18.16181rod Items)Tax 0.09 7.31 10.19 -12.28 3.60672 GLOBAL INSTITUTE OF MANAGEMENT
  • 22. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 22Reported Net -39.59 20.20 11.92 -22.34 14.2188ProfitTotal Value 52.09 41.42 46.82 52.65 47.36983AdditionPreference 0.00 0.00 0.00 0.00 0DividendEquity Dividend 0.00 1.48 0.00 0.00 7.300219Corporate 0.00 0.25 0.00 0.00 1.240681Dividend TaxShares in issue 54.74 74.03 87.63 89.90 85.8742(laths)Earnings Per -0.94 0.48 0.28 -0.53 0.381181Share (Rs)Equity Dividend 0.00 0.70 0.00 0.00 3.913093(%) Analysis of Common Size Statement  The contribution of net sales in total income was nearly same in all the yearIt was near about 98 to 100%.  The contribution of total expenditure was continuous decrease year by year, but in 2011 it Increased.  So that from the above common size statement we can easily find out thatCompany is at a growing stage. GLOBAL INSTITUTE OF MANAGEMENT
  • 23. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 23CHAPTER 5 (Trend analysis)Balance sheet of Ranbaxy ltd.particulars 2007 2008 2009 2010 2011Sources Of Funds Total Share Capital 100 112.6782 112.689 112.8552 113.1125 Equity Share Capital 100 112.6782 112.689 112.8552 113.1125 Share Application Money 100 14886.44 14902.54 559.322 56.77966 Preference Share Capital Reserves 100 141.7003 159.4662 209.1003 72.87934 Revaluation Reserves Net worth 100 146.4218 162.8821 202.1904 75.82847 Secured Loans 100 44.39423 48.16337 53.52124 62.88931 Unsecured Loans 100 113.5547 101.1023 129.5533 130.7837 Total Debt 100 106.3471 95.58525 121.6296 123.708 Total Liabilities 100 123.1851 123.8611 155.4784 103.5907Application Of FundsGross Block 100 105.5393 115.894 126.3611 136.8162Less: Accum.Depreciation 100 117.439 129.7439 144.6437 154.3096Net Block 100 99.12625 108.43 116.5081 127.3885Capital Work inProgress 100 130.9541 126.7241 100.843 67.99218Investments 100 111.7521 118.4133 117.5098 105.351Inventories 100 122.7904 126.0647 152.6438 169.5811Sundry Debtors 100 116.0413 173.8173 146.4056 417.9305Cash and Bank Balance 100 71.86509 36.84059 32.34361 96.42548Total Current Assets 100 117.868 144.7183 145.4594 280.6571Loans and Advances 100 266.3654 222.8394 166.5308 269.8468Fixed Deposits 100 1697.2 655.9467 2421.761 1684.649Total CA, Loans &Advances 100 222.7599 187.7519 238.3395 330.7512Differed CreditCurrent Liabilities 100 326.1655 261.8499 211.5836 438.0753Provisions 100 99.0598 103.372 125.697 508.7531Total CL & Provisions 100 238.6496 200.78 178.487 465.3112Net Current Assets 100 192.5327 162.9686 352.1973 74.7768Miscellaneous ExpensesTotal Assets 100 123.1854 123.8614 155.4785 103.5909Contingent Liabilities 100 125.796 129.8756 137.3781 148.01Book Value (Rs) 100 123.8641 138.4502 179.0031 67.04896 GLOBAL INSTITUTE OF MANAGEMENT
  • 24. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 24 Interpretation Net worth was rapidly increasing from last 3 years but it has decreased in 2011. Net block of the balance sheet has been increasing from 2008 to 2011 rapidly. Total assests was decreased in 2011. Profit and loss account (Trend analysis) Income 2007 2008 2009 2010 2011 Sales Turnover 100 107.6379 110.4295 130.912 177.4511 Excise Duty 100 47.05081 30.95192 79.73525 43.95562 Net Sales 100 108.3629 111.3806 131.5244 179.0485 Other Income 100 -288.07 88.12077 102.054 -724.071 Stock 100 284.2843 83.52189 397.0241 333.7924 Adjustments Total Income 100 65.09956 108.5244 130.4094 78.44195 Expenditure Raw Materials 100 110.1082 102.9772 117.1962 135.5642 Power & Fuel 100 120.4538 121.2728 146.9286 215.8052 Cost Employee Cost 100 112.525 138.6773 144.8148 201.2285 Other Manufacturing 100 114.5884 108.8862 117.046 136.4286 Expenses Selling and Admin 100 104.6039 97.40647 99.37884 117.7729 Expenses Miscellaneous 100 309.3301 127.5787 149.427 1035.948 Expenses Preoperative Exp Capitalized Total Expenses 100 115.115 106.2213 115.7608 166.8474 Operating 100 61.78876 157.4182 306.5752 309.5613 Profit PBDIT 100 -137.873 117.8706 189.8563 -280.326 Interest 100 156.0848 42.24553 58.00064 74.32302 PBDT 100 -169.359 125.9707 203.9792 -318.312 Depreciation 100 130.1019 124.821 192.3271 230.8431 Other Written Off Profit Before 100 -216.541 126.1519 205.8151 -405.875 Tax Extra-ordinary 100 50.0846 314.2132 61.70333 43.54202 GLOBAL INSTITUTE OF MANAGEMENT
  • 25. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 25 items PBT (Post Extra-ord 100 -204.559 134.6037 199.3384 -385.677 Items) Tax 100 -366.482 311.9918 265.1605 4.269577 Reported Net 100 -169.138 92.59535 185.9629 -494.083 Profit Total Value 100 119.6426 109.1548 114.4621 195.1388 Addition Preference Dividend Equity 100 0 0 26.5521 0.022072 Dividend Corporate 100 0 0 25.95547 -0.59369 Dividend Tax Per share data (annualized) Shares in issue 100 112.6783 112.6909 112.8581 113.1152 (lakhs) Earnings Per 100 -150.06 82.18599 164.7343 -436.715 Share (Rs) Equity 100 0 0 23.52941 0.017647 Dividend (%) Book Value 100 123.8641 138.4502 179.0031 67.04896 (Rs) Interpretation Total income of the company is decreased in 2011 as compared to last four years. Expenditure is increased in 2011, which is loss for a company. Earnings per share were increasing till 2010, but it went to negative in 2011. GLOBAL INSTITUTE OF MANAGEMENT
  • 26. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 26CHAPTER 6: (Cashflow Statement)Cash Flow of Ranbaxy Laboratories in Rs. Cr.Particulars. Dec 11 Dec 10 Dec 09 Dec 08 Dec 07 1565.2Net Profit Before Tax -3048.67 1061.92 -1619.08 774.41 5 1168.8Net Cash From Operating Activities 138.14 -665.43 -599.22 685.77 9 -Net Cash (used in)/from 1094.73 2067.8 86.12 -462.91 -708.18Investing Activities 0Net Cash (used in)/from Financing Activities -1268.98 991.48 -214.14 2817.20 132.19Net (decrease)/increase In Cash and Cash -35.13 92.57 -793.46 1755.07 109.78EquivalentsOpening Cash & Cash Equivalents 161.83 69.26 862.39 172.14 62.36Closing Cash & Cash Equivalents 126.70 161.83 68.93 1927.21 172.14 Interpretation:  It shows the cash inflow and outflow of the company.  The highest cash equivalents in the year 2008 in last five years.  There is a major difference between the financing activities of the year 2007 & 2008 because of company issue shares more than last year  Cash generated from operating activities is also highest in the 2010 as compare to the last five years. It may be because of high collection of debtors or sales of goods and services.  It shows from the last five year analysis that cash flow is in increasing and decreasing mood. GLOBAL INSTITUTE OF MANAGEMENT
  • 27. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 27 Chapter 6 (Ratio analysis)6.1- CLASSIFICATION OF RATIO As per requirement of various users the ratio may be classified in following groups. Profitability Ratio:- 1. Gross profit ratio. 2. Net profit ratio 3. Return on capital employs ratio 4. Return on share holders fund 5. Return on equity share holders fund 6. Operating ratio 7. Expenses ratio 8. Earnings per share 9. Dividend per share 10. Price Earnings ratio Liquidity ratio:- 1. Current ratio 2. Liquid ratio Leverage ratio:- 1. Debt equity ratio 2. Proprietary ratio 3. Capital gearing ratio 4. Long term fund to fixed assets Activity ratio:- 1. Sales turnover ratio 2. Total assets turnover ratio 3. Debtor ratio 4. Creditor ratio 5. Book value per share 6. Working capital turnover ratio Coverage ratio:- 1. Debt service coverage ratio 2. Interest coverage ratio GLOBAL INSTITUTE OF MANAGEMENT
  • 28. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 28 Profitability ratio 1. Gross profit ratio.= Gross profit *100 Sales Year 2007 2008 2009 2010 2011 Gross profit 3,094.07 2,857.63 2,620.92 2,386.75 2,261.48 Sales 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39 Profit 40.13493 50.24555 54.63107 51.04027 52.05518margin% Gross profit 60 54.63107 51.04027 52.05518 50.24555 50 40.13493 40 30 Profit 20 10 0 2007 2008 2009 2010 2011 Interpretation: Profit is increased in 2009 because of more production. It is in 2007 is very less as compare to other. GLOBAL INSTITUTE OF MANAGEMENT
  • 29. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 29 2. Net profit ratio = Net profit ×100 SalesYear 2007 2008 2009 2010 2011Net profit 1,872.00 1,712.11 1,593.40 1,456.68 1,469.52Sales 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39Profit 24.2828 30.1039 33.2132 31.1509 33.8257margin% Net profit 40 33.2132 33.8257 35 30.1039 31.1509 30 24.2828 25 20 profit 15 10 5 0 2007 2008 2009 2010 2011 Interpretation: Net profit is increased in the 2011 by 33.83% while it is less in the 2007 by 24.28%. It because of increasing in more selling of products. GLOBAL INSTITUTE OF MANAGEMENT
  • 30. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 30 3. Operating ratio = Operating exps ×100 SalesYears 2007 2008 2009 2010 2011sOperating exps 6,538.90 4,536.77 4,162.91 4,511.46 3,919.09Sales 7,709.17 5,687.33 4,797.49 4,676.21 4,344.39Operating 84.82 79.77 86.77 96.48 90.21ratio% Operating ratio 120 100 96.48 90.21 84.82 86.77 79.77 80 60 Operating ratio 40 20 0 2007 2008 2009 2010 2011 Interpretation: In the ratio exps is 96.48% in the 2010 it decrease the profit of the company. GLOBAL INSTITUTE OF MANAGEMENT
  • 31. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 31 4. Earnings per share = Earning per share *100 Share holders fund Years 2007 2008 2009 2010 2011 Earnings per share -72.32 27.28 13.61 -24.85 16.56 Share holders fund 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 E.P.S ratio -3.76 0.53 0.329 -0.67 0.65 5. Return on capital employs Ratio = E.B.I.T ×100 Net worth 2007 2008 2009 2010 2011 E.B.I.T -3,058.51 1,550.94 950.63 -1,631.77 753.56 Net worth 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 Return on capital 22.99 43.90 29.69 158.90 30.22 employs ratio 6. Dividend per share = equity dividend ×100 Pref, share Years 2007 2008 2009 2010 2011equity dividend 0.07 84.21 0.00 0.00 317.15 Pref, share 211.00 210.52 210.21 210.19 186.54Dividend ratio 0.033 40 0 0 170.017s GLOBAL INSTITUTE OF MANAGEMENT
  • 32. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 32 Liquidity ratio:- 1. Current ratio = Current Assets Current liabilitiesYears 2007 2008 2009 2010 2011Current assests 5,412.08 2,804.98 2,790.69 2,272.92 1,928.36Currentliabilities 5,157.68 2,491.08 3,082.89 3,840.11 1,177.35 Ratio 1.05 1.13 0.90 0.59 1.64 Current ratio 1.8 1.64 1.6 1.4 1.2 1.13 1.05 1 0.9 0.8 Current ratio 0.59 0.6 0.4 0.2 0 2007 2008 2009 2010 2011Interpretation: ration is increased by 1.05 in the 2007 while it is 1.64 in last year so it is good for company GLOBAL INSTITUTE OF MANAGEMENT
  • 33. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 33 2. Liquid ratio = Current assests –(stock-prepared exps). Current liabilities.Years 2007 2008 2009 2010 2011Currentassests –(stock-prepared 5,276.36 2,643.55 2,756.73 2,157.33 1,887.70exps).Currentliabilities. 5,157.68 2,491.08 3,082.89 3,840.11 1,177.35Ratio 1.023 1.06 0.89 0.56 1.60 Liquid ratio 1.8 1.6 1.6 1.4 1.2 1.023 1.06 1 0.89 0.8 Liqui ratio 0.56 0.6 0.4 0.2 0 2007 2008 2009 2010 2011 Interpretation: In the year 2011 it is 1.6 so reduces the liabilities. GLOBAL INSTITUTE OF MANAGEMENT
  • 34. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 34 Leverage ratio:- 1. Debt equity ratio = Long term debt Share holders fundYear 2007 2008 2009 2010 2011Long term debt 4,333.53 4,260.72 3,348.38 3,725.37 3,503.03Share holders 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40fundRatio 2.25 0.83 0.81 1.00 1.38 Debt ratio 2.5 2.25 2 1.5 1.38 1 debt ratio 1 0.83 0.81 0.5 0 2007 2008 2009 2010 2011 Interpretation: In the year 2007 it is 2.25 while it is1.38 in the 2011. GLOBAL INSTITUTE OF MANAGEMENT
  • 35. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 352. Proprietary ratio= Share holders fund Total assetsYears 2007 2008 2009 2010 2011 Shareholders 1,924.83 5,132.40 4,134.60 3,716.77 2,538.40 fund Total assets 6,258.36 9,393.11 7,482.99 7,442.15 6,041.42 Ratio 0.31 0.55 0.55 0.50 0.42 Proprietary ratio 0.6 0.55 0.55 0.5 0.5 0.42 0.4 0.31 0.3 Proprietary ratio 0.2 0.1 0 2007 2008 2009 2010 2011Interpretation: In the 2008 & 2009 it is 0.55 while it is in the 2007 by 0.31. GLOBAL INSTITUTE OF MANAGEMENT
  • 36. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 36 ACCOUNTIG POLICES AND NOTES Significant accounting polices:- Schedule ‘N’:- a. Basis preparation of financial statement:- The financial statement are prepared under the historical cost conventional accept for certain fixed assets which are revalued in accordance with the generally accepted accounting principles in India. And the provisions of the companies act 1956. b. Use of estimates :- The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expense during the accounting period. c. Own fixes assts:- Fixed assets are stated at cost net of value added tax. And includes amounts added on revaluations less accumulated depreciation and impairment loss if any all cost including financial cost in commencement of commercial product net charges on foreign exchange contract arising from exchange rate variations attribute table to the fixed assets are capitalized. d. Leased assts:- Operating leases rentals are expensed with reference to lease terms and other considerations. I. finance leases prior to 1st April, 2001: rentals are expensed with reference to lease terms and other consideration. II. Financial leases on or after 1st April. 2001: the lower of the value of the assets and present value of theminimum lease rentals is capitalized as fixed assets with corresponding amount shown as lease liability. Theprincipal component in the lease rental is adjusted against the lease liability and the interest component ischarged to profit and loss account. e. Intangible assets:- Intangible assets are stated at cost of acquisition less accumulated amortiosation. f. Depreciation:- Depreciation on fixes assets is provided to the extent of depreciable amount on written down value method at rates and in the manner prescribed in the company‟s act 1956. GLOBAL INSTITUTE OF MANAGEMENT
  • 37. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 37 Depreciation is provided on straight line method over their useful life. 100% depreciation is provided in the year of additions, on additions forming an integral part of existing plans including incremental cost arising on account of translation of foreign currency liabilities for accusation of fixed assets. Depreciation is provided as aforesaid over the residual life of the assets as certifies by values on assets acquired under fiancé lease from 1st April 2001. Depreciation is provided over the lease term.g. Foreign currency transactions:-  Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.  Monitory items denominated in foreign currency at year and are restated at year end rates in case of items which are covered by forward exchange contracts.  Nonmonetary currency items are carried at cost.h. Inventories:- Items of inventories are measured at lower of the cost and net realizable value after providing for obsolescence if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.i. Employee benefits:-  Short term employee benefits are recognize as an expense at the undiscounted amount in pal account of the year in which the rendered services is rendered.  In respect of employees stock options the excess of fair price on the date of grant over the exercise price is recognized as differed compensation cost amortized over the vesting period.j. Provision for current differed tax:- Provision for tax is made after taking in to consideration benefits admissible under the provisions of the income tax act 1961. Differed tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws that are in acted as on the balacesheet date.k. Provisions contingent liabilities and assts:- Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation is a result of past events. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized not disclosed. GLOBAL INSTITUTE OF MANAGEMENT
  • 38. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 38 ConclusionThe RANBAXY Project has documented substantial differences in the treatment of student andfaculty in the College of Medicine. Current objectives are to 1) continue with analysis of the data collected, particularly the ethnographic interviews with facultyand department chairs, and2) Continue to meet with faculty and administration to identify additional strategies for solving theproblems identified.The ultimate goal of the project is to achieve parity for student and faculty in an environment ofacademic excellence. GLOBAL INSTITUTE OF MANAGEMENT
  • 39. R A N B A X Y L A B O R A T O R I E S L I M I T E D P a g e | 39 Bibliography (References): www.google.com http://www.moneycontrol.com/financials/ranbaxylaboratories/balance-sheet/RL#RL www.ranbaxy.com International Directory of Company Histories, Vol. 70. St. James Press, 2005. http://www.fundinguniverse.com/company-histories/ranbaxy-laboratories-ltd-history/ GLOBAL INSTITUTE OF MANAGEMENT

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