INTRODUCTION INTRODUCT ION TO FINANCIAL FINAN CIAL STATEMENT STATEMENT ANALYSIS: ANALYSIS:
The basis for the financial analysis of any firm is financial information. A business firm prepares its financial statements as they provide useful financial information information and are helpful for the purpose of decision-making. Financial information is needed to predict, compare and evaluate the firms earning ability. The profit or loss statement shows the operating profit of the concern and the balance sheet depicts the balance value of acquired assets and liabilities at a particular time. For the purpose of obtaining the material and relevant information necessary for ascertaining the financial strengths and weakness to an enterprise, it is necessary to analyze the data depicted in the financial statement. The analysis is done by property establishing the relationship between the items of balance sheet and profit and loss account. ‘Financial statement analysis’ is a meaningful interpretation of financial statement! for
parties demanding demanding financial information!. There There are certain steps, which to be taken into consideration for statement analysis" #. $dentification of user!s purpose. %. $dentification of source. &. 'electing the techniques to be used for such analysis.
MEANING AND CONCEPT OF FINANCIAL ANALYSIS: The term financial financial analysis analysis is also known as analysis analysis and interpretation interpretation of financial statements statements refers to process of determining financial strengths and weakness of the firm by establishing strategic relationship between the items of the balance sheet ,profi ,profitt and loss loss accou account nt and operat operativ ivee data. data. Th Thee purpo purpose se of finan financi cial al analy analysi siss is to diagno diagnose se the inform informati ation on conta containe ined d in the financ financial ial state stateme ments nts so as to (udge (udge the the profitability and financial soundness of the firm. Financial statement analysis is an attempt to determine determine the significance significance and meaning meaning of the financial financial statement statement analysis analysis is an attempt to determine the significance and meaning of the financial statement data so that the forecast may be made of the future earnings, ability to pay interest and debt maturities and profitability of a sound dividend policy. The term financial statement analysis includes both analysis and interpretation. The term analysis is used to mean the simplification of financial data by methodical classification of the data given in financial financial statements, interpretation interpretation means e)plaining the meaning the
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meani meaning ng and signif signific icanc ancee of the the data data so simp simpli lifie fied. d. *owe *owever ver,, both both analy analysi siss and interpretation without analysis is difficult or even impossible.
RESEARC PRO!LEM +ublic limited for a company of the size of *etero financial analysis becomes very important to sustain the leadership position, to gain the confidence of the share holders.
O!"ECTI#ES OF TE STUDY The main aim of the study is to analyze the financial performance performance of *T *T /01' 2$3$T/.
To review and growth working of *T /01' 2$3$T/ during 4 years. To evaluate the financial analysis of its business operations. $nternal e)ternal factors that influence *T /01' 2$3$T/. 3anagement approach towards *T /01' 2$3$T/
SCOPE OF TE STUDY The scope of study is limited limited to collecting collecting data published in annual reports of the company with reference to the ob(ectives stated above and an analysis of data with a view to understand understand the solutions solutions by solutions solutions by applying applying various ratios relating relating to balance sheets.
NEED FOR TE STUDY
To understand the e)isting position of company relating to its financial position and to know what are the factors that result an organization yield profit and loss.
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METODOLOGY The study is based on primary as well as secondary data. %
gathered d through through personal personal interac interactio tion n with with various various T$ee %&ima T$ %&ima&y &y 'ata 'ata was gathere Functional heads and technical personal. T$e sec(n'a&y 'ata was collected from company!s annual reports from %556-%5#&.
7arious books, 8ews papers and $nternet.
LIMITATIONS As adequate data was not able to pool because of the secrecy maintained by the firm, proper (ustification for the pro(ect was not done. do ne. #. The study study is limi limited ted to the the financ financial ial analy analysis sis of ETERO DRUGS LIMITED) %. Th Thee stud study y is conf confin ined ed to the the figu figure ress avai availa labl blee on pape paperr and and no phy physica sicall verification has been done.
RE#IE* OF LITERATURE Financial Financi al Statement St atement Analysis : 3ethod used by interested parties such as investors, creditors, and management to evaluate the past, current, and pro(ected conditions and performance of the firm. atio analysis is the most common form of financial analysis. $t provides relative measures of the firm9s conditions and performance. performance. *orizontal Analysis and 7ertical Analysis are also popular forms. *orizontal analysis is used to evaluate the trend in the accounts over the years, while vertical analysis, also called a :ommon 'ize Financial 'tatement discloses the internal structure of the firm. $t indicates the e)isting relationship between sales and each income statement account. $t shows the mi) of assets that produce income and the mi) of the sources of capital, capital, whether by current or long-term long-term debt or by equity funding. ;hen using the financial financial ratios, a financial analyst makes two types of comparisons" Finan Financi cial al stat statem ement ent analy analysis sis is the proces processs of e)ami e)amini ning ng relat relatio ionsh nship ipss among among financial statement elements and making comparisons with relevant information.
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$t is a valuable tool used by investors and creditors, financial analysts, and others in their their decisi decisionon-ma maki king ng proces processes ses relat related ed to stocks stocks,, bon bonds, ds, and and other other financ financia iall instruments. The goal in analyzing financial statements is to assess past performance and current financ financial ial pos posit itio ion n and and to make make predi predict ction ionss about about the the futur futuree perfo perform rmanc ancee of a company. $nvestors who buy stock are primarily interested in a company9s profitability and their prospects for earning a return on their investment investment by receiving receiving dividends and
METODS OF FINANCIAL FINAN CIAL STATEMENT STATEMENT ANALYSIS: ANALYSIS: The following methods of analysis are generally used" +) COMPARATI#E STATEMENTS) ,) COMMON SI-E STATEMENTS) STATEMENTS) .) RATIO ANALYSIS) ANALYSIS)
Financial Financial statement statement refers to a set of report and schedules schedules that an accountant prepares at the end of time for a business enterprise.
+) C(m%a&ati/e statement analysis: :ompara :omparative tive stateme statement nt analysi analysiss refers refers to comparison of financial statement pertaining to two different periods by putting them side =by-side and finding find ing out the changes in absolute and relative changes.
,) C(m C(mm(n Si0e Si0e State tatem men entt anal analys ysiis: :omm :ommon on size size statem statement ent facil facilit ities ies comparison of financial statement not only of a single firm over a period of time, but also >
comparison comparison of financial financial statement of different different companied for any given time. 0nder, 0nder, this method, all the items of the statement are presented as a percentage of a particular item. Therefore, Therefore, even if the related absolute figures are in respect of vastly differently differently scale of operations, a common base for comparison is created. $ncrease of a common size income statement, statement, all the items are presented presented as a percentage of new sales. s ales. A common size balance sheet sh eet shows each item as a percentage percenta ge of total assets or total liabilities. A common size statement helps. $n determining the relative efficiency and soundness of a firm in understanding its financial strategy. analysis. $t .) Rati( Analysis: atio analysis is a very important tool of financial analysis. is the process of establishing a significant relationship relationship between the items of financial statements to provide a meaningful understanding of the performance and financial position of firm.
RATIO ANALYSIS 1 INTERPRETATION TYPES OF RATIOS: +) LI2UIDITY RATIOS ,) SOL#ENCY RATIOS .) ACTI#ITY RATIOS 3) PROFITA!ILITY PR OFITA!ILITY RATIO RATIO
+) LI2UIDITY RATIOS: These ratios measure the concern!s ability ability to meet shortterm obligations as and when they become due. These ratios show the short-term financial solvency of the concern. 0sually the following two ratios are calculated for this purpose. #. :urrent atio and %. ?uick atio #. C4&&ent Rati(: 5a6 Meani Meanin7: n7: This ratio establishes a relationship between current assets and current
liabilities. 58@ O89ecti/e: The ob(ective computing this ratio $ to measure the ability of the firm to
meet its short-term obligations and to reflect the short =term financial strength
5I6 CURRENT ASSETS" ;hich mean the assets which are held for their conversion in to cash within a year and include the following B
:ash Calances 3arketable 'ecurities Cills eceivableDless provision@ +repaid )penses $ncomes accrued but not due Advance +ayment of ta) Ta) Ta) reduced at source
Cank Calances /ebtorsDless provision@ 'tock of all types 7iz., aw-3aterial, ;ork-in-progress, Finished goods short-term loans and Advances Ddebit balances@ income
+rovision for bad and doubtful debts
5ii6 CURRENT LIA!LITIES: ;hich mean the liabilities which are accepted to be matured within a year and include the following :reditors for 1oods Cills +ayable 'hort-term loans and Advances +rovision for ta)
:reditors for )penses Cank verdraft $ncome received =in-advance 0nclaimed /ividend
5c6 C(m%4tati(n: This ratio is computed by dividing the current assets by the current liabilities. This ration is usually e)pressed as a pure ratio e.g.%"# in the form of a formula, this ratio may be e)pressed ads under.
5'6 Inte&%&et Inte&%&etati(n: ati(n: $t indicated rupees of quick assets available for each rupee of current liabilities. Traditionally, a quick ratio of #"# is considered to be a satisfactory ratio.
5e6 P&eca4ti(n: ;hile computing and using the quick ratio, it must be ensured, D$@ that the quality of the receivable Ddebtors and bills receivable@ has been carefully assessed and Dii@ that all ?uick assets and current liabilities have been properly valued.
,) SOL#ENCY RATIOS: These ratios show the long-term financial solvency and measure the enterprises. Ability to pay the interest regularly and to repay the principles Di.e. capital amount@ on maturity or in pre-determined installments at due dates. 0sually, the following ratio is calculated to (udge the financial solvency of the concern"
DE!TE2UITY RATIO: This is ratio ratio establ establis ishes hes a relat relatio ionsh nship ip betw between een longlong-ter term m debts debts and and 5a6 5a6 Meanin anin7 7: Th shareholders! funds. 586 O89ecti/e: The ob(ective of computing this ratio is to measure the relative proportion
of debt and equity in financing the assets of a firm. 4
5c6 C(m%(nents: There are two components of this ratio which are as under" 5I6 l(n7 ;te&m 'e8ts: ;hich mean long-term loans Dwhether secured or unsecured@ 5ii6 S$a&e$(l'e& S$a&e$(l'e& <4n's: ;hich mean equity share capital plus preference share capital
plus reserves and surplus minus fictitious assets De.g., preliminary e)penses@ e)p enses@ This is ratio ratio is comput computed ed by dividi dividing ng the the long-t long-term erm debts debts by the 5'6 C(m%4tati C(m%4tati(n: (n: Th shareholders shareholders funds. This ratio is usually e)pressed as a pure ratio e.g., %"# .in the form of a formula, this ratio may be e)pressed as under" 2ong =term /ebts /ebt-quity atio E -------------------------------------------- --'hareholder Funds 5e6 Inte&%&etati(n: $t indicates the margin of safety to long-run creditors. A low debt =
equity ratio implies the use of more equity than debt which means a larger safety margin margin for creditors since owner!s equity it treated as a margin of safety by creditors and vice versa.
+. ACTI#ITY RATIOS: These ratios measure the effectiveness with which a firm uses its available resources. These ratios are also called Turnover atio!s since they indicate the speed with which the resources are being turned or converted into sales. 0sually the following turnover ratios are calculated" •
:apital turnover atio
•
Fi)ed Assets Turnover atio
•
8et ;orking ;orking :apital Turnover atio
•
'tock Turnover atio
•
/ebtors Turnover atio
•
:reditors Turnover atio
+) Ca%ital T4&n(/e& Rati(: 5+6 5+6 Meani eanin7 n7:: This ratio establishes a relationship between net sales and capital
employed. 5,6 5,6 O8 O89e 9ect cti/ i/e: e: The ob(ectives of computing this ratio is determine the efficiency
with which the employed is utilized 5.6 C(m%( C(m%(ne nents nts:: There are two components of this ratio which Are as under" 8et
'ales which mean gross sales minus sales return. 5ii6 :apital mployed which means 2ong-term /ebt plus 'hareholders Funds.
5'6
This is ratio ratio comput computed ed by dividi dividing ng the net net sales sales by the the capit capital al C(m%4tati C(m%4tati(n (n" Th
employed. This ratio is usually e)pressed as 7 number of times. $n the form of a formula, this ratio may be e)pressed as under
:apital Turnover atio E
8et 'ales -------------------:apital mployed
5e6 Inte&%&etati(n: $t indicates the firm!s ability to generate sales per rupees of capital
employed. $n general higher the ratio the more efficient the management and utilization of capitals employed. ,) Fi=e' Assets T4&n(/e& Rati(: 5a6 Meanin7: This ratio establishes a relationship between net sales and fi)ed assets. 586 O89ecti/e: The ob(ective of computing this ratio is to determine the efficiency with
which the fi)ed assets are utilized. 5c6 C(m%(nents: There are two components of this ratio which are as under" 5'6 C(m%4tati(n: This ratio is computed by dividing the net sales by the net fi)ed assets.
This ratio is usually e)press as G! number of times. $n the form of a formula, this ratio may be 8et 'ales fi)ed Asset Turnover Turnover atio E
)pressed as under ---------------------------------------------------- --------------8et Fi)ed Assets
5e6 Inte&%&etati(n:
$t indicates the firm!s ability to generate sales per rupee of investment in fi)ed assets. $n general, higher the ratios, the more efficient efficient the management management and utilization utilization of fi)ed assets, and vice versa, may be noted that there is no direct relationship between sales are influenced by other factor.
.) Net *(&>in7 Ca%ital T4&n(/e& Rati(: 5a6 Meanin7: This ratio establishes a relationship between net sales and working capital.
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586 O89ecti/e: The ob(ective of computing of this ratio is to determine the efficiency with
which the working capital is utilized. 5c6 C(m%(nents: There are two components of this ratio which are as under
a. 8et sales sales which which means means gross gross sales sales minus minus sales sales return returnss b. ;orking ;orking capital which means current assets minus current c urrent liabilities 5'6 C(m%4tati(n: This ratio is computed by dividing the cost of goods sold by the
average inventory. This ratio is usually e)pressed as G! number of times. $n the formula, this ratio may be e)pressed as under" 8et 'ales ;orking ;orking :apital Turnover atio E -------------------;orking ;orking :apital 536 In'ic In'icate atess " The firm!s ability to generate sales per rupee of working capital. $n
general, higher the ratio, the more efficient the management and utilization of working capital and vice versa.
3) St(c> T4&n(/e& Rati(: 5a6 Meanin7 Meanin7:: This ratio establishes a relationship between costs of goods sold and
average inventory. 586 O89ecti/e: The ob(ective of computing this ratio is to be determining effectively with
which the inventory is utilized.
5c6 C(m%(nents: There are two components of this ratio which area as under"
Di@ Di@
:ost :ost of good goodss ssol old d whi which ch is calc calcul ulat ated ed as unde underr.
:ost of goods 'old E pening $nventory H 8et +urchaser H direct )penses -:losing $nventory Dii@ Dii@
Average erage invent inventory ory whic which h is is cal calcul culate ated d as und under er "
Average Average $nventory $nventory E
pening 'tock H :losing $nventory ----------------------------------------------------------------------------------------%
5'6 C(m%4tati( C(m%4tati(n: n: This ratio is computed by dividing the cost of goods sold by the
average inventory. This ratio is usually e)pressed as G! number of times. $n the form of a formula, this ratio may be e)pressed as under" :ost of goods sold 'tock Turnover Turnover atio E ---------------------------------------------I
Average Average $nventory $n ventory 5e6 Inte&%&etati(n: This speed with which the inventory is converted sales. $n general, a
high ratio indicates efficient performance since an improvement in the ratio shows that either the same volume of sales has been maintained without any increases in the amount of stocks. 5<6 St(c> #el(city: This velocity indicates the period for which sales can be generated
with the of an average stock maintained and is usually e)pressed in days. This velocity may be calculated as follows" 'tock 7elocity E
#% months
?) De8t(&s T4&n(/e& Rati( 5O&6 Recei/a8les T4&n(/e& Rati( 5a6 O89ecti/e: O89ecti/e: The ob(ective of computing this ratio is to determine the efficiency with
which the trade debtors are managed. 5c6 C(m%(nents: There are two components of this ratio which Areas underJ • •
8et :redit 'ales which means gross credit sales minus sales returnJ r eturnJ and Average trade debtors Dincluding bills receivables @ which are calculating as under
Average Average Trade /ebtors E
pening Trade /ebtors H :losing Trade /ebtors ---------------------------------------------------------- -------------------------------------------------------------%
5'6 C(m%4tati(n: This ratio is computed by dividing the net credit sales by average trade
debtors. This ratio is usually e)pressed as 7 number of times. $n the form of a formula, this ratio may be e)pressed as under /ebtors /ebtors Tu Turnov rnover er atio atio E
8et :redit ------------------------------------------------Average Trade atio
5e6 Inte&%&etati(n: $t indicates the speed with which the debtors turnover on an average
each year. $n general, a high ratio indicates the shorter collection period which implies prompt payments by debtors, and a low ratio indicates a longer collection period which implies delayed payment by debtors. 5<6 De8t C(llecti(n Pe&i(' 5O&6 De8t(&s #el(city: #el(city:
This period shows an average period for which the credit sales remain outstanding outstanding and measures measures the quality of debtors. $t indicates the rapidly or slowness with which the money is collected from debtors. This period nay is calculated as underJ #5
#%months
average trade creditors. 586 O89ecti/e: The ob(ective of comparing of computing this ratio is determined the
efficiency with the creditors are managed. 5c6 C(m%(nents: There are two components of this ratio which are as underJ
a@ 8et :redit :redit +urchases +urchases which which mean gross gross credit purchase purchasess minus purchases purchases returnJ returnJ and b@ Average Average Trade :reditors D $ncluding bills payable pa yable @ which are calculated as underJ c@ Average erage Tra Trade de :redi :redito tors rs E pening Trade :reditors H :losing Trade :reditors -----------------------------------------------------------------% 5'6 C(m%4tati(n: This ratio is computed by dividing the net credit purchases by average
trade creditors. This ratio is usually e)pressed as G! number of times. $n the form of formula, this may be e)pressed as underJ 8et :redit +urchases :reditors Turnover atio E ---------------------------------------------------- ----------Average Trade :reditors 5e6 Inte&%&etati(n: $t indicates the speed with which the creditors turn over on an average
each year. $n general, a high ratio indicates the shorter payment period which implies both the avai availab labili ility ty of less less credi creditt or earli earlier er payme payment nt period period whic which h impli implies es eith either er the availability or more credit or delayed payments 3) PROFITA!ILITY RATIOS: This ratio measures management!s overall effectiveness
as sho shown wn by the the return returnss gener generate ated d on sales sales and invest investme ment. nt. 0s 0sual ually ly tow tow type type of profitability ratio are calculated as
i. $n rela relati tion on to 'ale 'aless ii. ii. $n rel relat ation ion to inve investm stment ent 5A6 PROFITA!ILITY RATIOS IN RELATION TO SALES +
G&(ss P&(
5a6 Meanin7: This ratio measures the relationship between gross profit and net sales.
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Thee main main ob(ec ob(ecti tive ve of compu computin ting g of this this rati ratio o is to deter determi mine ne the 586 O89ec O89ecti/ ti/e: e: Th efficiency with production And < or purchase operations are carried. 5c6 C(m%(nents: These are two components of this ratio which are as underJ +6 G& G&(s (sss P&( P&(
This is the e)cess of net sales over cost of goods sold. :ost of 1oods 'old is calculated as under
+) In t$e t$e case case (< a t&a'i t&a'in7 n7 c(nc c(nce& e&n n
pening 'tock
Rs) GGG
Add " 8et +urchases
GGG
Add " /irect )penses De.g.:arrige inward@
GGG
2ess " :losing 'tock
:ost 1ood 'old
GGG GGG
DAHCH:-/@
,) In t$e t$e case case (< man4 man4
#@ pening pening 'tock 'tock of of Fini Finished shed 1oods 1oods %@ Add
":ost
of
1ood
+roduced
D3aterial
GGG
:onsumedH2aborHther3anufacturing
GGG
)penses @
GGG
&@ 2ess 2ess " :losi :losing ng 'tock 'tock of of finish finished ed 1oods 1oods
GGG
>@ :ost :ost of 1oods 1oods 'old 'old DAHC DAHC-: -:@@
5ii6 Net Sales: This is 1ross 'ales DCoth :ash and :redit@ minus 'ales eturns
#%
5'6 C(m%4tati(n: This ratio is computed by dividing the gross profit by the net sales. $t
is e)pressed as percentage. $n the form of a formula, this ratio may be e)pressed as under. 1ross +rofit -----------------8et 'ales
1ross +rofit atio E
G #55
5e6 Inte&%&e Inte&%&etati tati(n: (n: This ratio indicates Da@ an average margin earned on a sales of
s.#55,Db@ s.#55,Db@ the limit beyond beyond which the fall in sales prices will definitely definitely result in losses, and Dc@ what portion of sales is left to cover operating e)penses Dother than the cost of goods sold @ and non-operating e)penses. D$@ Dii@
,)
*igher 'ales +rices with constant cost of 1oods 'oldJ 2ower cost of 1oods 'old with constant 'ales +ricesJ Diii@ Diii@ A :ombina :ombinatio tion n of afore aforesaid said two factors factors..
O%e&atin7 P&(
sales. 586 O89ecti/e: The main ob(ective of computing this ratio which are as under" 5I6
O%e&atin O%e& atin7 7 P&(
)penses De.g. ffice and Administrative )penses, 'elling and distribution )penses, /iscount, Cad debts, $nterest on short-term debts@ and ,6 Net Sa Sales :This means 1ross 'ales DCoth :ash and :redit@ minus 'ales eturns 5c6 C(m%4tati(n: This ratio is computed by dividing the operation profit by the net sales.
$t is e)pressed as a percentage. $n the form of a formula, this ratio may be e)pressed as under. per perat atin ing g +rof +rofit it ati atio o
E
perating +rofit ---------------------------------8et 'ales
5e6 Inte&%&etati(n: Inte&%&etati(n: This ratio indicates Da@ an average operating margin earned on a sales
of ars.#55 and Db@ what portion of sales is left to cover non-operating e)penses, to pay dividend and to create reserves. *igher the ratio, the more efficient is the operating management. This ratio may increases due to any one of the following factors" a. *igh *igher er 1ros 1rosss +ro +rofi fitt J #&
b. 2ower perating )pensesJ c. A combina combination tion of afore aforesaid said two Factor Factors. s. .) Net P&(
profitability due du e to various factors such su ch as operational efficiency, trading on equity etc.
5c6 C(m%(nents: There are two components of this ratio which are as under" •
8et +rofit
•
8et 'ales
computed by dividing the 8et profit by the net sales. sales. $t is 5'6 C(m%4tati(n: This ratio is computed e)pressed as a percentage. $n the form of a formula, this ratio may be e)pressed as under.
5e6 Inte&%&etati(n: This ratio indicates
An average net margin earned on a sales of s.#55
;hat portion of sales is left to pay dividend and to creative reserves, and
Firm!s capacity to with stand adverse economic conditions when selling price is declining, cost of production is rising and the demand for the product is falling. *igher the ratio, grater is the capacity of the firm to withstand adverse economic condition and vice versa.
3) O%e&atin7 Rati( •
Meanin7: This ratio measures the relationship between operating cost and net
sales. operational 586 O89ecti/e: The main ob(ective if computing this ratio is to determine the operational efficiency with which production and
Dl@ perating cost which comprise Da@ :ost of 1oods 'old and Db@ other perating )penses De.g., Administrative )penses, 'elling and /istribution )penses, interest on short-term loans, /iscount allowed and Cad /ebts@ DAll@ 8et 'ales which means gross sales minus sales returns.
#>
5'6 C(m%4tati(n: This ratio is computed by dividing the operation cost by the net sales.
This ratio is e)pressed as a percentage. $n the form of a formula, this ratio may be e)pressed as under. pera perati ting ng ati atio o
E
perating :ost ---------------------------------------8et 'ales
G #55
5e6 Inte&%&etati(n: Inte&%&etati(n: This ratio indicates an average operating cost incurred on a sales of
goods s.#55. 2ower the ratio, greater is the operating profit to cover the non-operating e)pense, to pay dividend and to are preserves and vice versa.
5!6
PROFITA!ILITY RATIOS IN RELATION TO IN#ESTMENT 'ince the term
investment! may refer to Total Assets. :apital mployed or 'hareholders! funds!, the return of $nvestment D$@ can be calculated in any one of the following ways " #. Ret4&n (n S$a&e$(l'e& <4n's 5O&6 Ret4&n (n E4ity: 5a6 Meanin7: This ratio measures a relationship between net profit after interest, and ta),
and shareholders! funds. 586 O89ecti/e: The ob(ective of computing this ratio to find out how efficiency the funds
supplied by the equity shareholders have been used. 5c6 C(m%(nents: There are two components of this ratio as under"
8et +rofit after interested and Ta)J Ta)J 'hareholder share funds which mean equity share capital plus preference
• •
share capital plus eserves and 'urplus minus Fictitious Assets D$f any@. 5'6 C(m%4tati(n: This ratio is computed by dividing the net profit after interest and ta)
by shareholder funds. $t is e)pressed as a percentage. percen tage. $n the form f orm of a formula, for mula, this ratio may be e)pressed as under" eturn on 'hareholder Funds E
8et +rofit after interest and ta) -------------------------------------------------------- -----------------------'hareholder Fund
G #55
5e6 Inte&%&etati(n: Inte&%&etati(n: This ratio indicates the firm!s ability of generating profit per rupee of
shareholder finds. *igher the ratio, the more efficiency the management and utilized of shareholder funds. #B
,) Ea&nin7s %e& S$a&e 5EPS6
shareholder on a per 5a6 Meanin7: This ratio measures the earning available to an equity shareholder share basis.
586 O89ecti/e: The ob(ective of computing this ratio is to measure the profitability of the
firm on per equity share basis. 5c6 C(m%(nents: There are two components of this which are as under"
$. 8et +rofit +rofit after after interes interestt ,Ta) ,Ta) and +refere +reference nce dividend dividend $$. $$. 8umber 8umber of equit equity y 'har 'hares es 5'6 C(m%4tati(n: This ratio is by dividend by dividing the net profit after interest, ta)
and preference dividend by the number of equity shares. $t is e)pressed as an absolute figure. $n the form of a formula, this ratio may be e)pressed as under" 8et +rofit after interest, Ta) and preference /ividend E ---------------------------------------------------------- -------------------------------------------------------------------- 8umber of quity 'hares.
arnings per 'hare
5e6 Inte&%&etati(n: Inte&%&etati(n: $n general, higher the figure, better it is and vice versa. ;hile
inte interp rpre reti ting ng this this rati ratio, o, it mu must st be seen seen whet whethe herr ther theree is any any incr increa ease sess in equi equity ty shareholder!s Funds as a result of retained earnings without any change in number of outstanding shares. 5.6 P&(%&ieta&y Rati( 5a6 Meanin7: Meanin7: This ratio measures a relationship between proprietor!s Fund and the
Total Assets. 586 O89ecti/e: The ob(ective of computing this ratio is finding out how the proprietor!s
have financial the assets 5c6 C(m%(nents: There are two components of this ratio which are as under"
i.
+ropriet +roprietor!s or!s Funds Funds De)cludi De)cluding ng fict fictiti itious ous assets assets like like prelim preliminary inary e)p@
ii.
Total Assets
iii. 5'6 C(m%4tati(n: This ratio is computed by dividing the +roprietor!s Fund by Assets. $t
is e)pressed in percentage. $n this form of a formula, this ratio may be e)pressed as under" +roperty atio E
+roperty atio ----------------------------------- -------------Total Assets
G #55 #4
N(te"
+roprietor!s Funds means 'hareholders Funds.
5?6 Inte& Inte&%&e %&etat tati(n i(n:: This ratio indicates the e)tent to which the assets of the firm
have been financed out of +roprietor!s Funds.
INDUSTRY PROFILE INTRODUCTION TO !ULB DRUG INDUSTRY: 'ince the achievement of independence, independence, $ndia pharmaceutical industry registered a substantial substantial progress and has become one of the country!s leading industries. industries. $ndia is now providing large quantities of varied bulk drugs and pharmaceutical products of late. specially during 65!s $ndia acquired a status of one of the ma(or e)ports of drugs and pharmaceutical in the international market. +rior to the launching launching of second five year plans, the manufacture manufacture of pharmaceuticals pharmaceuticals was limited largely to processing to bulk-imported drugs into tablets, :apsules and other formalities. 2ater the $ndian manufacturer were encouraged to make up the manufacture of basic drugs wherever it is economically possible and technically feasible, resulting in the growth of bulk drugs industry and leading to self sufficiency in the production of these raw material s called as bulk drugs. The number of bulk drugs and pharmaceutical chemicals ch emicals manufactured in the country by the $ndian change in the pattern of produc producti tionJ onJ the the indust industry ry has now emer emerge ged d as an e)port e)porter er of basic basic chemi chemical cals, s, intermediaries and finished production. Thus bulk drugs are poised to become the new start in the e)port firmament. +harmaceutical +harmaceuticalss are medicinally medicinally effective effective chemicals, chemicals, which are converted to dosage forms suitable for patients to imbibe. $n it basic chemical from, pharmaceuticals are called bulk drugs and the final dosage forms are known as formulations. 0sage of pharmaceuticals is governed by the underlying unde rlying medical science. The four primary pr imary medical sconces are as under"
Allopathic or modern medicine has gained global popularity.
Ayurveda, an ancient $ndian science, mainly uses herbal remedies.
#
0nani having :hinese rigin is prevalent in 'outh ast Asia.
*omeopathy, founded by a 1erman +hysician, was fairly popular in the early #Ith century.
RESEARC DRI#EN INDUSTRY: +harmaceutical industry is driven by a global need to conquer disease. 3edicines are developed to treat new diseases or improve upon the e)isting treatment. An in-depth understanding of human physiology and disease mechanism is a pre-requisite to pharmacy K/. to facilitate research, companies usually concentrate on select therapeutic therapeutic areas such as anti-ulcer, anti-ulcer, anti-cancer anti-cancer etc., ma(or diseases for which new drugs are continuously being researched 1lobally 1lobally are A$/', A$/', Alzhei Alzheimer! mer!ss disease, disease, arthrit arthritis is Drheuma Drheumatic tics@, s@, cancer cancer,, depressi depression, on, diabetes, heart disease, osteoporosis and stock. Casic 7s process K/ basic research deals with discovery < invention of new medicinally effective chemical. +rocess K/ is basically reverse engineering of a molecule through slight process modifications. Casic research is both time and cost intensive. *undred of molecules need to be analyzed to determine determine possible effectiveness. effectiveness. Following such laboratory laboratory testing, actual clinical trials are then carried out to determine the drugs efficiency on patents. The process this requires around #%-#B years and cost us L &B5->55 mm per new chemical entity D8:@. +rocess K/ is far easier and costs are negligible compared to basic research.
MANUFACTURING PROCESS: Culk drugs prepare prepared d by appropri appropriate ate chemica chemicall reaction reactionss of natural< natural< syn synthet thetic ic intermediaries intermediaries under controlled controlled conditions. conditions. Formulations manufacture manufacture is a branch mi)ing process. ight dosage of bulk drug Dactive ingredient@ is compounded with compatible substances, to make the formulations palatable. +acked as per the physical from-bottle Dfor Dfor liqui liquid@ d@,, blist blister er strip stripss Dfor Dfor tabl tablets ets < capsu capsule les@ s@ or ampou ampoule less Dfor Dfor power powers@, s@, each each formulation pack has the e)piry date and storage instructions printed on it. 'tringent quality control is e)ercised at all stage of Therapeutic segments. For ease of prescription, prescription, bulk drugs and their formulations formulations are classified as per there and use i.e. therapeutic therapeutic effectiveness effectiveness against particular particular disease or ailment. ailment. For e.g. 3edical
#6
are categorized as anti-tuberculosis etc, the ma(or therapeutic categories and the key drugs there in are detailed wise-later.
!ENEFIT TO MANBIND: Cetween #I%5 and #I45, the death rate, due to disease, in a year fell from #%,#%5 noses per million people to 6,655 no permission persons. very > years since #I4B, one additional year has added to life e)pectancy at birth due to advances in pharmacy K/. +resently in 0'A, the average life e)pectancy is over B years. As antibiotics enabled people to survive more advanced ages, researches focused on call biochemistry to fine cures for more comple) chronic diseases" /rug researches are now targeting to cure the underlying causes of diseases that are rooted in human molecular structure.
GRO*T: +harmaceutical is a continuous growth industry, immune to economic recession and commodity commodity cycle, cycle, rising rising populat populations ions,, new disease disease incidenc incidencee or resurge resurgence nce of certain certain diseases diseases spurs spurs that growth. growth. Therape Therapeuti uticc usage usage of pharmac pharmaceuti euticals cals varies varies across across the globe.* globe.*ype yperten rtention tion and cardiac cardiac diseases diseases like like typhoid typhoid,, tubercul tuberculosis osis etc., etc., are largely largely prevented in developing dev eloping nations.
INDUSTRY SI-E: The global pharmaceutical industry, presently valued as 0' L &5B bin, is pro(ected to grow at a :A1 of 6M pa in the ne)t B years. $n #II6 market grew by M as against 4.4M in the previous years. 1rowth rate differ across nations, with the developing nations like 'outh Norea, Taiwan, $ndia etc., nothing high growth in range of #%-#BM pa. This can be attributed to healthcare cost containment containment pressure keeping pharmaceutical pharmaceutical prices low like developed developed countries, countries, while e)port e)port opportun opportuniti ities es and low dom domesti esticc per capita capita consump consumption tion have provide provide higher higher growth potential in the developing nations.
INDIAN SCENARIO: D&a8ac>s: $n the the B5 year yearss inde indepe pend nden ence ce,, the the $ndi $ndian an phar pharma mace ceut utic ical al indu indust stry ry has has evol evolve ved d significantly. $nitially, the 38:!' had a near monopoly. They imported and marketed formulations in $ndia, mainly low cost generics for the mosses and also few specialties, #I
life saving, saving, high priced priced products products.. ;ith the governm government ent increas increasing ing pressure pressure against against impor imports ts of finis finished hed produc products. ts. Th Thee 38:! 38:!ss setup setup form formula ulatio tions ns units units and conti continue nued d importing the bulk drugs. $n the 45!s the $ndian government laid the foundation of the domestics domestics pharmaceutical pharmaceutical industry by promoting promoting *industan *industan Antibiotics Antibiotics 2td., D*A2@ and $ndian drugs.*powever, 38:!s maintain a lead due to backing of their global K/. *igh costs for basic research deterred local players Din the private sector@.
PRESENT SCENARIO: ver %5,555 registered pharmaceutical manufacturers e)ist in the country. The market share of 38:!s has fallen from BM in#I# to around &BM in the $ndian pharmaceutical market, ;hile the share of $ndian companies. *ave increased from %5M in #I# to nearly 4BM.pusses have almost lost completely. The secret has undergone undergone several policy as well as attitudinal attitudinal changes over the past two year. $t was the one of o f the ma(or beneficiaries b eneficiaries from the budget proposals. 'ome of the positive steps taken were. +harmaceutical industry as knowledge based industry. The government has plans to increase the investment in research and /evelopment. /evelopment. ationalization ationalization of e)cise duty and reduction in interest rates in e)port financing. Forei Foreign gn direc directt inves investm tment entss permi permitt up to >M throug through h autom automati aticc route route.. Additi dditiona onall deductions deductions under income ta) laws for K/ e)pense. 'etting up to high-level comities to review drug policy for strengthening ed capabilities, reducing the price control regime. Ceside the $ndian parliament has enacted the required changes in the $ndian +atent Act #I5 D$+@ regarding mailbo) arrangements and )clusive 3arketing ight D3@.For while the main +harmacy companies companies have a recorded a measure of #.>M increase in sales and .>M fall in profits, the $ndian pharmacy have companies have recorded a%#M growth in sales companies has decreased frtom#.6M if sales to #.4M in case of 38: +harmacy companies has increased &.6 to >.>M.'o while the 38: companies did not make many new launches Dmake a hue K cry about increasing competition from the generics, delay in patent regime, unfavorable price cuts@. Cut the $ndian companies too, everything everything in stride and went out all cylinders cylinders firing-launching firing-launching new products, products, entering entering generics market, recognizing the marketing structure, focusing on growth segments like cardiac, and psychiatry among a host of other initiatives. $ndian pharmaceutical e)ports,
%5
among the top three contributors to the world pharmacy trade, are poised to grow &.%BM this year to torch L #.B billion, according to :$$ estimates. The country is potential to rank among top three tin!s the world has suppliers of the generic drugs by %5#5, of the government paves why for creating a conductive business environment environment by framing framing new policies for the sector, said ran bo)y chief e)ecutive officer /.'. Carr.
S*OT ANALYSIS FOR TE INDIAN PARMA INDUSTRY: STRENGTS: •
:ost competitiveness
•
;ell-developed industry with strong manufacturing base
•
;ell stablished network of laboratories and K/ infrastructure.
•
Across to pool of highly trained scientists, both in $ndia and abroad.
•
'trong marketing and distribution network.
•
ich Cio-/iversity.
•
:ompetencies in chemistry and process developments.
*EABNESS: •
2ow investments in innovative K/.
•
2ack of resources to complete complete with other 38:!s 38:!s for new /rug /iscovery
•
research and commercializes molecules on the world wide basis. 2ack of strong linkages between industry and academia. 2ack of culture of innovation in industry. $nadequate regularity standards. +roduction of spurious and low quality drugstarnishesthe image of the
•
industry at home. And abroad.
• • •
OPPORTUNITIES: 'ignificant e)port potential 2icensing deals with 38:!s for 8:!s and 8//s. 3arketing alliances to sell arrangements with 38:!s. :ontract manufacturing $ndia as a center for international clinical trials. 8iche player in global pharmaceutical K/.
%#
TREATS: +roduct patent regime poses a serious challenge to domestic industry unless it invests in research and development. K/ efforts of $ndia pharmaceutical companies hampered by lack of enabling regulatory requirement. /rug /rug pric pricee cont contro roll of $ndi $ndiaa phar pharma mace ceut utic ical al comp compan anie iess from from gene genera rati ting ng OinevitableP surplus. )port effort by procedural hurdles in $ndia as well as non-tariff barriers imposed abroad. 2owering of tariff protection.
COMPANY COMPANY PROFILE %%
+harmaceutical $ndustry in $ndia has risen leaps and bounds in the past two decades. /uring the early 65!s multinational companies ruled the $ndustryJ whereas the large $ndian companies have taken the leadership position. 8ow one such company of $ndian origin is *etero drugs
!RIEF ISTORY I STORY OF TE COMPANY: COMPANY: April April,, #II&, #II&, saw the rise of a new organiz organizatio ation, n, *etero *etero /rugs /rugs under under the stewardship of /r. +arthasarathi eddy, a technocrat with a vast e)perience in the field of research and development for designing the processes with a team of highly component professionals with e)pertise in their respective resp ective fields of operation. operatio n. stablished in the year #II&, with the motto to be the best in the A+$ manufacture, het hetero today embodi odies the visio sion of a top notc otch playe ayer in dev develo elopin ping and commercializing products catering to a variety of the therapeutic categories, integrating into a leading finished dosage manufacture. ;ith full-fledged marketing capabilities, the company has been able to market its products in over 65 countries in Asia, 3iddle-east, astern urope and 2atin America. ;ith its compliance to the most stringent regulatory requirements, *etero has today gained foothold to market several of its A+$s in the 0nited 'tates, :anada, and urope.
MANAGEMENT: The member of the Coard of /irectors of the company.
Name
Desi7nati(n:
#. /r. +arthasarathi eddy
:hairman K 3anaging
/irector %. C. 8agi eddy &. 3. +era eddy >. A.7. A.7. 8arsa eddy B. :. Chaskara eddy 4. Q. 'ambi eddy . 3. 'rinivasa eddy 6. C. 7amshi Nrishna
)ecutive /irector /irector - Finance /irector - :orp. Tech Tech /irector - ?uality control /irector -+roduction /irector /irector
C(m%any Sec&eta&y: :. 1opala Nrishna
ETERO’S MANUFACTURING FACILITIES
The company is having manufacturing facilities in and around Andhra +radesh. *etero has e)panded its manufacturing facilities to cater to the growing demand for the active pharmaceutical ingredients ing redients of a wide range of o f therapeutic categories. categories . %&
#ISION AND #ALUES: #ALUES: *etero *etero visuali visualizes zes itself itself as an aggressi aggressive ve player player in the global global pharmac pharmaceuti eutical cal scenar scenario, io, sup supply plying ing gentri gentries es devel develope oped, d, combin combining ing intel intelle lect ctual ual prope propert rty y, resear research ch strengths and strong human resource inputs. The company values the concepts of having social responsibilities responsibilities in the course of its assent to greater greater heights. $t strongly believes believes in focusing on customer customer requirements requirements and delivering the products at the right pace. *eteroconsiders its human resources as the core of all its capabilities and believes in tapping and honing the talents of its members to reach the zenith of success $t believes in continuous evaluation and improvement in all the factors that contribute in transforming the organization into a global force to reckon with. *etero takes due cognizance to the fact that the processes that it develops should be all eco-friendly and should not result in any consequence that harms the ecological harmony.
MISSION: *etero! *etero!ss 3ission 3ission is to be globally globally acclaim acclaimed ed pharmac pharmaceuti eutical cal company company,, 3eeting 3eeting the requirements of *ealthcare imbibing the philosophy of the both commercial and social concerns, driven by research and manufacturing capabilities.
2UALITY SYSTEM POLICIES: 3anufacture and marketing of pharmaceutical products following an integrated of quality system!s system!s meeting the customer and regulatory regulatory requirements requirements to ensure quality, quality, safety and efficacy of the product.
'triving for e)cellence through continuous upgrading of the resources and facilities to meet the ever changing demands with respect to the technologies technologies and system systems, s, aiming at, continuous continuous quality improvement improvement and customer customer satisfact satisfaction ion giving the consideration consideration for the protection of the environment. The approval of *etero!s *etero!s A+$facul A+$faculty ty by 0'/A and finished finished dosage faculty by ;* ;* bear a testimony testimony to this this fact. +roviding +roviding training, training, safe working environment environment and opportunities opportunities for all its employees employees to grow along with the organization and striving for the better course of society. %>
ETERO RESEARC FOUDATION: *etero!s emphasis has always been on research and development .The emphasis was to ensure that processes been g adapted for the products are cost effectives, safe to handle and with optimum advantage in terms of yield and quality. *aving laid solid foundation towards the end hetero!s K/ approach has also taken cognizance of the present scenario where stringent has been and is involved in developing non-infringing processes for its products. ;ith its ability abilit y to e)plore e)plo re high and a nd achieve the best, hetero h etero has been be en able to file patents for several severa l of its processes. From an organization, which was concentrating on developing processes for A+$!s hetero, has now a full- fledge K/ facility for formulation development. *etero research capabilities capabilities have been proven with its ability to carry out a wide range of reaction, which are difficult to carry out. 1iven its research capabilities hetero has today has initiated contract research. Towards the end, the company has already evolved its strategies and is into discussions with renowned companies for carrying out the contract research. :ustom synthesis is one area where the company has been concentrating on and has initiation work on several pro(ects. $n addition addition to to the above, the company company is now on the threshold threshold of commencing commencing basic research activities to develop and screening new chemical entities for different therapeutic categories.
ETERO’S STRENGT:
'trong mphasis on research and development Ability to orient and adapt to the changing facets of industry, particularly in term termss of regu regula lati tion ons, s, inte intell llec ectu tual al prop proper erty ty and and manu manufa fact ctur urin ing g
capabilities. :ohesive team fog skilled professionals in all wings related to research,
manufacture and marketing. 'trong customer base and market presence %B
'trong 'trong commit commitment ment towards the society society to provide provide timely sup support port by providing life saving savin g drugs at relatively low cost, co st, short span of time.
CAREERS:
*etero considers considers its human recourse as its core strengths. strengths. The company company believes in the fact that its present position has on aggressive layer can be attributed attributed to the efforts efforts on art of ail employees working in different departments in realizing its goal of being a top 8otch company.
Thee compan Th company y offe offers rs the the best best of the the opp opport ortuni uniti ties es to work, work, where where the potent potentia iall and capabilities capabilities of personnel. The latent talents are boned to meet the challenges challenges faced by the organization and achieve the best. *etero believes in recognizing and rewarding contributions of its employees. To To meet meet its staff requirements, hetero has several openings in different departments for those who are ready to take up the challenge and deliver the go
ETERO RECOGNITION RECOGNITI ON AND A*ARDS: The efforts of hetero towards achieving the recognition as an organization to reckon with in the pharmacy sector have yielded fruits, crossing numerous mile stones, in its (ourney to success. To name a few *ereto was awarded the O8ational Award for the best efforts in esearch esearch and /evelop /evelopmen mentP tP by the departm department ent of scientif scientific ic and industri industrial al research research,, ministry of science and technology, 1overnment of $ndia.
2UALITY ACCRIDITIONS
?uality of products and organization as a whole. ?uality systems in every department K/ to marketing. $' I55% certification for manufacture and marketing of A+$s. :13+ and ;* certification for the A+$s. 0'F/A approved manufacturing facility. :orporation Analytical esearch ;ing for establishing in house specifications.
%4
DATA ANYLYSIS 1PRESENTATION
!ALANCE SEET OF ETERO DRUGS LTD) FOR TE YEAR ENDING .+ ST MARC ,+ PARTICULARS
.+.,
PERCENTAGE
.+.,+
OF CANGE SOURCES OF FUNDS SARE OLDER FUNDS 'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured loans DIFERRED TA LIA!ILITY5Net6 TOTAL APPLICATION OF FUNDS FIED ASSETS 1ross Clock 2ess" /epreciation 8et Clock
PERCENTAGE OF CANGE
&>B55555 6%4I4#>&
%.#5 B5.>B
&>B55555 466&IIB
%.&4 B%.4&
BBBII#>BI #%&IIB& I#%>#B
&&.I# .B4 B.I4
45II&&5B# >&%>4% 8$22
>#.4 &.%> 5
+@.+33HH3
+
+3@?3++H
+
4%>>%#%4 II>>5B4I B%>I64BB
&6.5I 4.54 &%.5%
B>#4B56& &55465> >464>>5&&
&.56 >.II &%.56
%
IN#ESTMENTS CURRENT ASSETS
+@H++++
+),?
?3HH@?3
.)@
B6>%B%4I 4>6#4B# #IB#B46 ##656#B5 +.@3+.H
&B.%6 &I.B> 5.## .%5 H.),?
B56#IBBI 444>4#6 %#%6#&B III&>&6 +.@3,?
&>.I B%.>I #.>6 B.> 3),3
+rovisions :urrent liabilities +rovisions NET CURRENT ASSETS MISCLLANEOUS
&I##B#%B5 %55B4B4 3@..+., %>55>
%&.64 #.4> ?)+ 5.55#
>#54%&6&# %I555555 .@H@H+ #5##%
%6.## #.I6 @3)+3 5.55%
EPENDITURE TOTAL
+@.+33HH3
+
+3@?3++H
+
LOANS 1 AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL 2ess" :urrent 2iabilities K
INTERPRETATION: #.An analysis of current assets of both the years shows the percentage of current assets to that of total assets is 6&M in the year %55I and reduced to I>M in the year %5#5 and in the both the years the company is having h aving adequate working capital. The percentage percen tage of current liabilities is less than that both current assets of the both years, the inventories share greater value in current assets. %. An analy analysis sis of curre current nt liabi liabilit litie iess to that that of share share holder holder!s !s funds funds sho shows ws that that the the percentage of debt is less than the equity that is good sign i.e., the company!s solvency solven cy is sound. To run the company it has to depend on working capital. That is the most of work workin ing g capi capita tall proc procur urem emen entt has has been been done done from from the the topi topicc earn earned ed and and rese reserv rves es maintained by the company. &. :ompanies reserve capacity is very good. All the fi)ed assets are well utilized and investments are made regularly.
%6
!ALANCE SEET OF ETERO ETERO DRUGS LTD) LTD) FOR TE YEAR ENDING ENDING .+ ST MARC ,+++ PARTICULARS
.+.,+
PERCENTAGE
.+.,++
OF CANGE SOURCES OF FUNDS SARE OLDER FUNDS 'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured loans DIFFERED TA
PERCENTAGE OF CANGE
&>B55555 466&IIB
%.&4 B%.4&
&> B555 55 6 %4I 4#>&
%.#5 B5.>B
45II&&5B# >&%>4% 8$22
>#.4 &.%>
B BB II#> BI # %&I IB & I##%>##B I##%>##B
&&.I# .B4 B.I4
+3@?3++H
+
+?3+3.,3@
+
B>#4B56& &55465> >464>>5&& ?3HH@?3
&.56 >.II &%.56 .)@
4% >>% #% 4 I I> >5B4 I B%>I64BB +@H++++
&6.5I 4.54 &%.5% +),?
B56#IBBI 444>4#6 %#%6#&B III&>&6 +.@3,?
&>.I B%.>I #.>6 B.> 3),3
B 6>% B%4I 4> 6#4 B # # IB# B4%6 ##656#B5 +.@3+.H
&B.%6 &I.B> #.#I .%5 H.),,
+rovisions :urrent liabilities +rovisions NET CURRENT ASSETS MISSCLLANEOUS
>#54%&6&# %I555555 .@H@H+ #5##%
%6.## #.I6 @3)+3 5.55%
4I##B#%B5 % 55 B4B4 3@..+., %> 55>
%&.64 #.4> ?)+ 5.55#
EPENDITURE TOTAL
+3@?3++H
+
+?33.,3@
+
LIA!ILITY5Net6 TOTAL APPLICATION OF FUNDS FIED ASSETS 1ross Clock 2ess" /epreciation 8et Clock IN#ESTMENTS CURRENT ASSETS LOANS 1 AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL 2ess" :urrent 2iabilities K
%I
INTERPRETATION: #.An analysis of current assets of both the years shows rhea percentage of current assets to that of total assets is I>M in the year %5#5 and reduced to 6&M in the year %5## and in the both the years the company is having adequate working capital. The percentage of current liabilities is less than that both current assets of the both years, the inventories share greater value in current assets. %. An analy analysis sis of curre current nt liabi liabilit litie iess to that that of share share holder holder!s !s funds funds sho shows ws that that the the percentage of debt is less than the equity that is good sign i.e., the company!s solvency solven cy is sound. To run the company it has to depend on working capital. That is the most of work workin ing g capi capita tall proc procur urem emen entt has has been been done done from from the the topi topicc earn earned ed and and rese reserv rves es maintained by the company. &. :ompanies reserve capacity is very good. All the fi)ed assets are well utilized and investments are made regularly.
&5
!ALANCE SEET OF ETERO DRUGS LTD) FOR TE YEAR ENDING .+ ST MARC ,+++, PARTICULARS
.+.,++
PERCENTAGE
.+.,+,
OF CANGE
PERCENTAGE O OF F CANGE
SOURCES OF FUNDS SARE OLDER FUNDS 'hare capital eserves K 'urplus
&> B555 55 6 %4I 4#>&
%.#5 B5.>B
#555555 #5&4%56%
&.&5 >6.%
'ecured loans
B BBI I#> BI
&&.I#
646#545&6
>5.&
0nsecured loans
# %&I IB&
.B4
B#B6>B5I
%.&I
DIFERRED TA
I #% >#B
B.I4
#%%%#%4
B.
LIA!ILITY5Net6 TOTAL
+@.+33HH3
+
,+3@+33?
+
4% >>% #% 4 II>> 5B4 I B%>I64BB +@H++++
&6.5I 4.54 &%.5% +),?
I5##&5> #&5>55445 4444#54>> ?,3,@,
&.5 4.54 &#.55 ,)33
B 6> %B%4I 4 >6#4 B # #I B# B4%6
&B.%6 &I.B>
#>I6%>% #5%>4%I6% #>>I4BII
&&.%B >.44
LOAN FUNDS
APPLICATION OFFUNDS FIED ASSETS 1ross Clock 2ess" /epreciation 8et Clock IN#ESTMENTS CURRENT ASSETS LOANS 1 AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances
##656#B5 +.@3+.H
#.#I .%5 H.),,
#6I4>#B5 +3.33@,.
5.4 6.65 )3
+rovisions :urrent liabilities +rovisions NET CURRENT ASSETS MISCLLANEOUS
4I##B#%B5 % 55B 4B4 I> 45& &#&% %> 55>
%&.64 #.4> B.# 5.55#
45#&4I&%B #B%#B5 #%5BBB&>& 6I 4
%.I &.&% BI.#5 5.555&
EPENDITURE TOTAL
+@.+33HH3
+
,+3@+33?
+
2oans K Advances TOTAL 2ess" :urrent 2iabilities K
INTERPRETATION: #.An analysis of current assets of both the years shows the percentage of current assets to that of total assets is 6&M in the year %5## and reduced to I5M in the year %5#% and in the both the years the company is having h aving adequate working capital. The percentage percen tage of current &#
liabilities is less than that both current assets of the both years, the inventories share greater value in current assets. %. An analy analysis sis of curre current nt liabi liabilit litie iess to that that of share share holder holder!s !s funds funds sho shows ws that that the the percentage of /ebt is less les s than the equity that is good sign sig n i.e., the company!s compan y!s solvency is sound. To run the company it has to depend on working capital. That is the most of work workin ing g capi capita tall proc procur urem emen entt has has been been done done from from the the topi topicc earn earned ed and and rese reserv rves es maintained by the company. &. :ompanies reserve capacity is very good. All the fi)ed assets are well utilized and investments are made regularly.
!ALANCE SEET OF ETERO DRUGS LTD) FOR TE YEAR ENDING .+ ST MARC ,+,+. PARTICULARS
.+.,+,
PERCENTAGE OF CANGE
SOURCES OF FUNDS SARE OLDER FUNDS
&%
.+.,+.
PERCENTAGE OF CANGE
'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured loans DIFERRED TA
# 555 555 #5&4%56%
&.&5 >6.%
&>B55555 #>>55&55>B
#.# >.
646#545&6 B #B6 >B5 I #%%%#%4
>5.& %.&I B.
#%655I#>I >6##I%# #%#4B%%
>&.BI #.4& B.6
,+3@+33?
+
,.@+?H?
+
I5##&5> #&5>55445 4444#54>> ?,3,@,
&.5 4.54 &#.55 ,)33
#%B%B>&%#> #I45%4#6I> #5B4B#5%5 ++?@@HH,
>%.4B 4.4 &B.I ?)H3
#>I6%>% #5%>4%I6% #>>I 4BII #6I4>#B5 +3.33@,.
&&.%B >.44 5.4 6.65 )3
I>>#5I#%B #5>B&>6%> I#B&%6 &B5#I#4& ,3@?H33
&%.#B &4.BI &.&5 ##.I% H.)H
+rovisions :urrent liabilities +rovisions NET CURRENT ASSETS MISCLLANEOUS
45#&4I&%B #B %#B 5 #%5BBB&>& 6I4
%.I &.&% BI.#5 5.555&
4>65I##4 ##5565IB& #56#&%5 %B4B4&
%%.5 &.> B6.#4 5.556
EPENDITURE TO TOTAL
,+3@+33?
,.@+?H?
+
LIA!ILITY5Net6 TOTAL APPLICATION OFFUNDS FIED ASSETS 1ross Clock 2ess" /epreciation 8et Clock IN#ESTMENTS CURRENT ASSETS LOANS 1 AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL 2ess" :urrent 2iabilities K
+
INTERPRETATION: #.An analysis of current assets of both the years shows the percentage of current assets to that of total assets is I5M in the year %5#% and reduced to 6&M in the year %5#& and in the both the years the company is having h aving adequate working capital. The percentage percen tage of current liabilities is less than that both current assets of the both years, the inventories share greater value in current assets. %. An analy analysis sis of curre current nt liabi liabilit litie iess to that that of share share holder holder!s !s funds funds sho shows ws that that the the percentage of debt is less than the equity that is good sign i.e., the company!s solvency solven cy is sound. To run the company it has to depend on working capital. That is the most of work workin ing g capi capita tall proc procur urem emen entt has has been been done done from from the the topi topicc earn earned ed and and rese reserv rves es maintained by the company.
&&
&. :ompany!s reserve capacity is very good. All the fi)ed assets are well utilized and investments are made regularly.
!ALANCE SEET OF ETERO DRUGS LT LTD) D) FOR TE YEAR ENDING .+ ST MARC ,+.+3 PARTICULARS
.+.,+.
PERCENTAGE
.+.,+3
OF CANGE
PERCENTAGE OF CANGE
SOURCES OF FUNDS SARE OLDER FUNDS 'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured loans DIFERRED TA LIA!ILITY5Net6 TOTAL APPLICATION OF
&> B55 555 #>>55&55>B
#.# >.
&>B55555 %%&656&B#6
5.I B#.6I
#%655I#>I >6##I%# #%#4B%%
>&.BI #.4& B.6
#I%%>I5% >>B6655# %5&%5%%B
>#.BB #.5& >.#
,.@+?H?
+
3.+,@,,H,+
+
FUNDS
&>
FIED ASSETS 1ross Clock 2ess" /epreciation 8et Clock IN#ESTMENTS CURRENT ASSETS
#%B%B>&%#> #I45%4#6I> #5B4B#5%5 ##B4466%
>%.4B 4.4 &B.I B.6>
#6B5I>#B %B4%&4& #B%66>#>% %&I&&I&I6
>#.&I B.I> &B.>B B.B>
LOANS 1 AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL 2ess" :urrent 2iabilities K
I>>#5I#%B #5>B&>6%> I#B &%6 &B5#I#4& ,3@?H33
&%.#B &4.BI &.&5 ##.I% H.)H
##II#I#%I# %%&#B5##5 %B4#>I4 B>B#BI>6 3@?
%.65 B#5> #.46 #&.&% 3)??
+rovisions :urrent liabilities +rovisions NET CURRENT ASSETS MISCLLANEOUS
4>65I##4 ##5565IB& #56#&%5 % B4B4 &
%%.5 &.> B6.#4 5.556
#>#I&I4#&5 #%565IB& %B&#%I%6%% #&#>66BI
&%.I# %.I> B6.4I 5.&5
EPENDITURE TOTAL
,.@+?H?
+
3.+,@,,H,+
+
INTERPRETATION: #. An analysis of current assets of both the years shows the percentage of current assets to that of total assets is 6&M in the year %5#& and reduced to I>M in the year %5#> and in the both the years the company is having h aving adequate working capital. The percentage percen tage of current liabilities is less than that both current assets of the both years, the inventories share greater value in current assets. %. An analy analysis sis of curre current nt liabi liabilit litie iess to that that of share share holder holder!s !s funds funds sho shows ws that that the the percentage of debt is less than the equity that is good sign i.e., the company!s solvency solven cy is sound. To run the company it has to depend on working capital. That is the most of work workin ing g capi capita tall proc procur urem emen entt has has been been done done from from the the topi topicc earn earned ed and and rese reserv rves es maintained by the company. &. :ompany!s reserve capacity is very good. All the fi)ed assets are well utilized and investments are made regularly.
&B
!ALANCE SEET OF ETERO DRUGS LTD) FOR TE YEAR ENDING .+ ST MARC ,++3 PARTICULARS
.+.,+
.+.,++
.+.,+,
.+.,+.
.+.,+3
&> B555 55 46 6&II B
&>B55555 6%4I4#>&
#555555 #5&4%56%
&>B55555 #>>55&55>B
&>B55555 %%&656&B#6
4 5II &&5 B# > &%> 4% 8$22
BBBII#>BI #%&IIB& +,3+?
646#545&6 B#B6>B5I +,,,+,@
#%655I#>I >6##I%# +,+@?,,
#I%%>I5% >>B6655# ,.,,,?
+3@?3++H
+@.+33HH3
,+3@+33?
,.@+?H?
3.+,@,,H,+
B> #4B 56& &55 46 5> >464>>5&& ?3HH@?3
4%>>%#%4 II>>5B4I B%>I64BB +@H++++
I5##&5> #&5>55445 4444#54>> ?,3,@,
#%B%B>&%#> #I45%4#6I> #5B4B#5%5 ++?@@HH,
#6B5I>#B %B4%&4& #B%66>#>% ,....H
B 56# IBBI 444> 4# 6 % #% 6#&B III& >&6 +.@3,?
B6>%B%4I 4>6#4B# #IB#B4%6 ##656#B5 +.@3+.H
#>I6%>% #5%>4%I6% #>>I4BII #6I4>#B5 +3.33@,.
I>>#5I#%B #5>B&>6%> I#B&%6 &B5#I#4& ,3@?H33
##II#I#%I# %%&#B5##5 %B4#>I4 B>B#BI>6 3@?
SOURCESOFFUNDS SAREOLDER FUNDS 'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured lo loans DIFERRED TA LIA!ILITY5Net6 TOTAL APPLICATION OF FUNDS FIED ASSETS 1ross Clock 2ess" /epreciation 8et Clock IN#ESTMENTS CURRENTASSETS LOANS 1AD#ANCESS $nventories 'undry /e /ebtors :ash K Cank Calances 2oans K Advances TOTAL 2ess" :urrent 2iabilities
K+rovisions
&4
:urrent liabilities
>#5 4%& 6&#
4I##B#%B5
45#&4I&%B
4>65I##4
#>#I&I4#&5
+rovisions
% I555 55 5
%55B4B4
#B%#B5
##5565IB&
#%565IB&
NETCURRENTASSETS MISCLLANEOUS
I& 464 6I#I #5##%
I>45&&#&% %>55>
#%5BBB&>& 6I4
#56#&%5 %B4B4&
%B&#%I%6%% #&#>66BI
EPENDITURE TOTAL
+3@?3++H
+@.+33HH3
,+3@+33?
,.@+?H?
3.+,@,,H,+
!ALANCE SEET SO*ING TRENDS IS PERCENTAGES OF ETERO DRUGS LTD) FOR TE YEAR ENDING .+ ST MARC ,++3 PARTICULARS
.+.,+
.+.,++
.+.,+,
.+.,+.
.+.,+3
#5 5 # 55
# 55 #5.B4
%5B.I #&>.6
# 55 #6%.%
#55 %I#.#%
# 55 #5 5 5
I#.#4 %4#.I6 5
#>%.&% #5 I 5
%5I.6 #5#.46 5
%I&.6> I>.%# 5
+
++,),.
+3)+H
,+).
,?),
+ #55
++,), &5B.
+3,),3 IB.>4
,,?)33 &#%
.,@),, >&B.%B
#5 5 #5 5 #5 5 #5 5 +
##&.6% 6>.BB 6I.6# #>.% )+
#>#.4I #&&.4B 44.% %&4.64 +3+)+
#6B.6 #>5.#4 >>.#& >&6.56 +)+?
%&B.I6 %I#.5 &&&.IB #6.# ,@),3
+rovisions :urrent liabilities +rovisions NET CURRENT ASSETS MISCLLANEOUS
#55 + #55 #55
IB.%B I&.#% #55.II BI.6>
#>4.>B %>4.4& #&#.4% #I.46
#B.6& &I.BI #6%.%I 4&I.4%
&>B.4 >&6.%# %5.#6 &%65.&4
EPENDITURE TOTAL
+
++,),.
+3)+H
,).
,?),
SOURCES OF FUNDS SAREOLDERFUNDS 'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured loans DIFERRED TA LIA!ILITY5Net6 TOTAL APPLICATION OF FUNDS FIED ASSETS 8et Clock IN#ESTMENTS CURRENT ASSETS LOANS1AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL 2ess" :urrent 2iabilities K
8T"
Assuming the values are base year i.e., %5#5 as #55M
INTERPRETATION: CURRENT CURRENT ASSETS ASSETS:: As per the above table of trend percentages of balance sheet of
hetero drugs limited. The position of current assets is improved year after year. /uring the &
year %5## the current assets were at II.#M, but it gradually increased and in the year %5#> it is %I4M. This increasing trend is due to increase in the value of cash K Cank balances and loans loan s and advances. FIED ASSETS: As per the above table of trend percentages of balance sheet of hetero
drugs limited. There There is a continuous continuous increase in the value of fi)ed assets. /uring the year %5#> it is at &%4M. $t is a positive sign. percentages of balance sheet of hetero IN#ESTMENTS: As per the above table of trend percentages drugs limited. There is a continuous trend. Cut during the year %5## its value reduced significantly. *owever company was able to hope this situation the fi)ed assets show and increasing trend thereafter and during the year %5#> it is at >&BM. CURRENT LIA!ILITIES: As per the above table of trend percentages of balance sheet
of hetero drugs limited. There is a continuous trend. From the year %5#5 to %5#> there is increase in current liabilities that indicates the credit worthiness, its reputation in the credit market.
FINDINGS The following are the findings and conclusions that have been drawn by researcher &6
Thus, the overall position. ;orking capital utilization etc. indicated that the firm is in a satisfactory level. FINDINGS AND SUGGETIONS:
n the basis of the analysis analysis and interpretations interpretations of various ratios and financial statements in chapters > KB, the following findings and suggestions are made.
The profitability position of the company is good and it can be improved by
looking into the factors contributing to the company!s profile. The current and quick ratio of the company is so far so good but further reduction
is advised. The company!s company!s total assets and fi)ed assets turn over ratios are satisfactory satisfactory,, and
can be improved. Though the financial position is considered to be strong, the company is advised
to maintain consistency in improving its reserve capacity. The company!s aim should be to strive for the ma)imization of share holder!s
wealth. The credit management policy needs to be emended in order to reach the idle debtors turnover ratio. The company is advised to further improvise its policies in
this matter. *etero /rugs 2td. is one of rising star in the bulk drugs and pharmaceutical industry, which is investing more of its funds and personnel on research K /evelopment activities in order to produce new drugs in the country.
CONCLUSSION
n the the whole, whole, the performance performance of ETERO DRUGS LIMITED is good, but a lot of improvement improvement is required especially especially in utilizing funds, investments, amendments amendments in credit management policies, etc., the company has to achieve its set targets by striving for its fulfillment.
&I
BIBLIOGRAPHY
Re
R
A4t$(& S(4&ce
#. Financial 3anagement
+rasanna :handra
%. Financial 3anagement
$.3. pandey
&. Advanced Accountancy
*ani K 3ukhar(ee >5
>. Annual eports for the Financial Sear %556-%5#&
*etero /rugs 2td.,
*e8site: )$ete&('&47s)c(m
APPENDIA COMPARATI#E !ALANCE SEETOF ETERO DRUGS LTD) FOR TE YEAR ENDING .+MARC ,+ PARTICULARS
SOURCES OF FUNDS SAREOLDER FUNDS 'hare capital eserves K 'urplus LOAN FUNDS
'ecured loans 0nsecured loans DIFERRED TA LIA!ILITY5Net6 TOTAL APPLICATION OFUNDS FIED ASSETS 1ross Clock 2ess" /epreciation
8et Clock IN#ESTMENTS CURRENT ASSETS LOANS 1 AD#ANCESS AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL
.+.,
.+.,+
INCREASE
PERCENTAGEINCR
DECREASE
EASEDECREASE
- B6 #> >%
-.5&B56B%>#
&>B55555 6%4I4#>&
&>B55555 466&IIB
BBBII#>BI #%&IIB& I#%>#B
45II&&5B# >&%>4% 8$22
B&I>#BI% - 4 4B>I 5#
I.5#6>%#B -4#.6%64B&6%
+@.+33HH3
+3@?3++H
+H@.+@@
+)H@++H.,
4%>>%#%4 II>>5B4I
B>#4B56& &55465>
- 6% 4% 6I
-#&.%B4&B
B%>I64BB +@H++++
>464>>5&& ?3HH@?3
- %4 >&& 4B - B4 &>%B %> ++.++,?.
-%4.B6%>B4# -#5.&%#6>#> @),HH.@+3?
B6>%B%4I 4>6#4B# #IB#B46 ##656#B5 +.@3+.H
B56#IBBI 444>4#6 %#%6#&B III&>&6 +.@3,?
- 5 %>B #5 ##6>655> #I4B4 46#6BB646 +,.,+,
-#%.#>>&5#> #6.%I%&5I# #5#&.&465# B.>>>6B )+H.,++
>#
2ess" :urrent 2iabilities K +rovisions :urrent li liabilities +rovisions NET CURRENT ASSETS
&I##B#%B5 %55B4B4 3@..+.,
>#54%&6&# %I555555 .@H@H+
#I>%B6# #II>&>> +@3,+.
>.I6%>55B .&6>I#%%B )@H@H3H
MISCLLANEOUS
%> 55>
#5##%
- #& 6I%
-B.6&46%
EPENDITURE TOTAL
+@.+33HH3
+H@.+@@
+)H@++H.,
+3@?3++H
COMPATI#E COMPATI#E !ALANCE SEET OF ETERO DRUGS LT LTD) D) ST FOR TE YEAR ENDING .+ MARC ,+++ PARTICULARS
.+.,+
SOURCES OF FUNDS SARE OLDER FUNDS 'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured loans TOTAL APPLICATION OF FUNDS FIED ASSETS 1ross Clock 2ess" /e /epreciation 8et Clock IN#ESTMENTS CURRENT ASSETS
.+.,++
INCREASE
PERCENTAGE
DECREASE
INCREASEDECREASE
&> B555 55 466&IIB
&>B55555 6%4I4#>&
5 B6 # >>%
5 .5B4>4%4I
45II&&5B# > &%> 4% +3@?3++H
BBBII#>BI #%&IIB& +?3+3.,3@
- B &I >#BI % 4 4B>I 5# HH?+
-6.6>&6B>B4I #4#.I44#&> ?)?.H33,H
B>#4B56& &5 546 5> >464>>5&& ?3HH@?3
4%>>%#%4 II>>5B4I B%>I64BB +@H++++
6% 4%6 I % 4>&& 4B B4&>%B%> ++.++,?.
#B.%6%%%&5> &4.%5%4%% #%.5%%>B4%I ,?)+?,@
B56#IBBI 444>4#6 % # %6#&B III&>&6 +.@3,?
B6>%B%4I 4>6#4B# #IB#B4%6 ##656#B5 +.@3+.H
5% >B #5 -##6>655> - % %#% B5 &6# >#& % +,.,+,
#&.6%&55IB -#B.>B>&5&#B -#5#6%46%B >.#>6#%4 )H.,.
+rovisions :urrent liabilities +rovisions NET CURRENT ASSETS DIFERRED TA
>#54%&6&# % I55 555 5 .@H@H+ 8$22
4I##B#%B5 %55B4B4 3@..+., -I#%>#B
- #I> %B 6# - # II> &>> +@3,+.
->.>%#I>B44 -4.65>6%4 )H+3?+?
LIA!ILITY5Net6 MISCLLANEOUS
#5##%
%>55>
- #4 #56
->5.#BBB66>
EPENDITURE TOTAL
+3@?3++H
+?33.,3@
+.@+,3
H)3,@.?@H
LOANS 1 AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL
2ess" :urrent 2iabilities K
COMPATI#E !ALANCE SEET OF ETERO DRUGS LTD) FOR TE YEAR ENDING .+ ST MARC ,+++,
>%
PARTICULARS
.+.,++
.+.,+,
INCREASE
PERCENTAGE
DECREASE
INCREASEDECREASE
SOURCES OF FUNDS SARE OLDER FUNDS 'hare capital
& >B55 555
#555555
&4B 5555 5
#5B.I#5#>
eserves K 'urplus
6%4I4#>&
#5&4%56%
%5I%>&&B
%B.&5&#BB#
BBBII#>BI
646#545&6
&#%##>BI
B4.#&4BII
LOAN FUNDS
'ecured loans
>&
0nsecured loans
#%&IIB&
B#B6>B5I
DIFERRED TA
I # %>#B
#%%%#%4
-%&IB54> %B5BI##
-B6.&I%&B&I %B.4>4&I>54
+@.+33HH3
,+3@+33?
?+?,@?@+
.+)+3?H,+
1ross Clock
4%>>%#%4
I5##&5>
#%B6>#6
%.4&665%#4
2ess" /epreciation
II >>5 B4I
#&5>55445
&5I 455I #
&#.#&>%4B&
8et Clock
B%>I64BB
4444#54>>
#>#4%>56
%4.I45&&
IN#ESTMENTS
+@H++++
?,3,@,
++?@.,
@H)33+H
$nventories
B6>%B%4I
#>I6%>%
#&4BB%I&
%&.45#%%&
'undry /ebtors
4>6#4B#
#5%>4%I6%
&4>4%%B4
B6.56#55B
:ash K Cank Calances
#IB #B4% 6
#>>I4BII
-B5#I5%I
-%B.#II6I&
2oans K Advances
##656#B5
#6I4>#B5
TOTAL
#&4>#I55&6
+3.33@,.
#B 4555 5 ?,?@,+
45.45%#B%4 3,)3@+?3?
K +rovisions :urrent li l iabilities
4I##B#%B5
45#&4I&%B
-6I6#I%B
-#%.II5#II&%
+rovisions
%5 5B4 B4
#B%#B5
>>B #BI# >
#4>.6&I%%>6
NET CURRENT
I>45&&#&%
#%5BBB&>& &%>B%%%## - #4 #5 6
&>.&5&>%5B -4.#5B>6%>%
LIA!ILITY5Net6 TOTAL APPLICATIONOF FUNDS FIED ASSETS
CURRENT ASSETS LOANS 1 AD#ANCESS
2ess" :urrent 2iabilities
ASSETS MISCLLANEOUS
% >55 >
6I4
EPENDITURE TOTAL
+@.+33HH3
,+3@+33?
?+?,@?@+
.+)+3?H,+
COMPARITI#E !ALANCE SEET OF ETERO DRUGS LT LTD) D) FOR TE YEAR ENDING .+ ST MARC ,+,+. PARTICULARS
.+.,+,
.+.,+.
INCREASE
PERCENTAGE
DECREASE
INCREASEDECREASE
SOURCES OF FUNDS SAREOLDER FUNDS
'hare ccaapital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured loans DIFERRED TA
#555555 #5&4%56%
&>B55555 #>>55&55>B
- &4B 555 55 #&&4>B%#%&
-B#.>56>B5 #%6I.B#I6
646#545&6 B#B6>B5I #%%%#%4
#%655I#>I >6##I%# #%#4B%%
>##I6B>BI - &>4 > 66 >II>>&I4
>.>BI4>I% -4.#4%#6B >5.465B44%#
,+3@+33?
,.@+?H?
H@[email protected]
.@)?H@.?
I5##&5> #&5>55445
#%B%B>&%#> #I45%4#6I>
>BBB&#I#5
B.#BB5#%>B
#6%I64#%&> &6II54&4 ++@@,
#>5&.%45#B B6.>I56#4% ,,@)H+++3
LIA!ILITY5Net6 TOTAL APPLICATIONOF FUNDS
FIED ASSETS
1ross Clock 2ess" /epreciation 8et Clock IN#ESTMENTS
4444#54>> ?,3,@,
#5B4B#5%5 ++?@@HH,
>>
CURRENT ASSETS LOANS 1AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances
#>I6%>% #5%>4%I6% #>>I4BII
I>>#5I#%B #5>B&>6%> I#B&%6
2oans K Advances TOTAL
#6I4>#B5 +3.33@,.
&B5#I#4& ,3@?H33
45#&4I&%B #B%#B5 #%5 #%5BB BBB& B&>& >&
4>65I##4 ##5565IB& #5 #56# 6#& &%5 %5
%%I#&566& >II5>II
&%.5>%B%B >.65B&I#4&
6%4B#%I #45BB5#I& ?,,?3.,+
B5.#6%I5%I 6>.4BI6#556 ,@)HH3?..@
>4%#6>% &6BBI&6&
.4I%>%4&4 B&.I#%I>%4& &>.>#B5%6 &#>I.%6##4 .@)?H@.?
2ess" :urrent 2iabilities K +rovisions :urrent liabilities +rovisions NET CURRENT ASSETS MISCLLANEOUS
6 I4
%B4B4&
>&%4#I %>644
EPENDITURE TOTAL
,+3@+33?
,.@+?H?
H@[email protected]
COMPARITI#E !ALANCE SEET OF ETERO DRUGS LTD) FOR TE YEAR ENDING .+ ST MARC ,+.+3 PARTICULARS
SOURCES OF FUNDS SARE OLDER FUNDS 'hare capital eserves K 'urplus LOAN FUNDS 'ecured loans 0nsecured lo loans DIFERRED TA LIA!ILITY5Net6 TOTAL APPLICATIONOFFUNDS FIED ASSETS 1ross Clock 2ess" /epreciation
8et Clock IN#ESTMENTS CURRENT ASSETS LOANS 1 AD#ANCESS $nventories 'undry /ebtors :ash K Cank Calances 2oans K Advances TOTAL 2ess" :urrent 2iabilities K
+rovisions :urrent li liabilities +rovisions NET CURRENT ASSETS
.+.,+.
.+.,+3
INCREASE
PERCENTAGE
INCREASEDECREASE
&>B55555 #>>55&55>B
&>B55 555 %% &656& B#6
6&&B&>&
BI.I6IBB
#%655I#>I >6##I%# #%#4B%%
# I%% >I5% >>B6 655 # % 5& %5%% B
B#%#BB&5 - & B&# %5 &5>6BB&
>5.55I>>5 -.&&I>>>5B #.4B5>B5
,.@+?H?
3.+,@,,H,+
+.@3@?.@
3@)HH3,
#%B%B>&%#> #I45%4#6I>
#6B 5 I>#B %B 4%& 4&
B&%B&4%5#
>%.B#4&I&>B
#5B4B#5%5 ++?@@HH,
#B%66>#>% ,....H
-#5 -#5>5 >5%> %>%% %%# # >%&%>%% @,?+@
-64. -64.I% I%6 6&IBI &IBI4 4 >>.5B6# .)?,@+
I>>#5I#%B #5>B&>6%> I#B&%6 &B5#I#4& ,3@?H33
##II#I#%I# %%&#B5##5 %B 4#> I4 B>B #BI >6 3@?
%BB56%#44 ##B4I44&>4 - %> BI %%&% %%>&%>#6B +@++H3@?
%.5#6%I%4% #5.4#&46# -%B.&#%55& 4>.5BB%B& @?).@.@
4>65I##4 ##5565IB& #56#&%5
#> #I &I4#& 5 #% 565 IB& % B& #%I%6 %%
#&5>I4& #555555 6%&>BB5%
##I.5##III #B.>>A%4 >6.%#6556BI
>B
MISCLLANEOUS
%B 4B4 &
# &# >66BI
#%6I%%I4
B5%B.55%5>4
EPENDITURE TOTAL
,.@+?H?
3.+,@,,H,+
+.@3@?.@
3@)HH3,
APPENDI!
ORGANISATION STRUCTURE
!OARD OF DIRECTORS
•
CAIRMAN MANAGING DIRECTOR DIRECTORS
CORPOREATE OFFICE CORPOREATE PLANNING OPERATIONS
MANAGING DIRECTOR
AD#ISOR
GENERAL MANAGER 5R1D6
R1D 2UALITYASSURAN
CE 2UALITY
GENERAL MANAGER
CONTROL E2UIPMENT
5C(mme&cial6 FINANCE
DE#ELOPMENT
ACCOUNTS PURCASE STORES DISPATC
>4
GENERAL MANAGER 5Sales6
MARBETING SALES
