a project report of spil

7/28/2019 A Project Report Of SPIL

1/12

SUN PHARMACEUTICAL

INDUSTRIES LIMITED

SUBMITTED TO SUBMITTED BY

PROFF- SAMRESH CHHOTRAY BHAWANEE SINGH

( PIBM, BHILWARA) ( PIBM, BHILWARA)


2/12

2010-11 was a good year for Sun Pharma,as were the preceding years. Our financialperformance was strong, we completed a significantacquisition, enriched the portfolio of products weoffer in the US, strengthened our specialist rankingsin India and rest of world markets, added to ourintellectual capital, and yet again reaffirmed our

commitment to high standards of corporategovernance and stakeholder transparency. We aretoday the largest Indian company in the US genericsspace, the largest pharma company in India inchronic therapies, and an emerging force in the restof the world markets. We believe each development

over the past year, incremental as it may seem inisolation, is part of a natural growth trajectory thatbuilds from strength to strength. We will endeavor todrive future value through our steadily growing basebusiness, complemented with acquisitions andalliances, while retaining the same respect forthe bottom line.


3/12

BALANCE SHEET OF SUN PHARMACEUTICAL INDUSTRIES LIMITED

As on 31st march 2011 and 31st march 2010

LIABILITIES AMOU

NT

MILLION

AMOU

NT

MILLION

ASSETS AMOU

NT

MILLION

AMOU

NT

MILLION

31 MARCH2011

31 MARCH2010

31 MARCH2011

31 MARCH2010

Shareholders Funds 1,035.6 1,035.6 Fixed Assets

Reserves and Surplus 65,769.7 56,144.2Gross BlockLess:Depreciation /Amortisation /Impairment

12,687.6

(4,743.7)

11,597.6

(4,192.4)

Loan Funds Net Block 7,943.9 7,405.2Secured Loans 505.3 294.9 Capital Work-in-

ProgressDeferred Tax Liability(Net)

1,285.1 1,153.3 (includingadvances oncapital account)

2,280.6 921.5

Current Liabilities

and Provisions

Investments 36,014.2 40,516.9

Current Liabilities 3,139.3 2,633.0 CurrentAssets, Loans

and Advances

Provisions 4,331.0 3,424.8 Inventories 6,182.6 5,701.4Sundry Debtors 5,426.2 5,532.9

Cash and BankBalances

12,509.0 888.7

Other CurrentAssets

183.7 57.9

Loans and 5,525.8 3,661.3


4/12

Advances

TOTAL 68,595.

7

58,628.

0

TOTAL 68,595.

7

58,628.

0

PROFIT& LOSS A/C OF SUN PHARMACEUTICAL INDUSTRIES LIMITED

As on 31st

march 2011 and 31st

march 2010

PARTICULAR AMOU

NT IN

MILLIO

N

AMOU

NT IN

MILLIO

N

PARTICULAR AMOU

NT IN

MILLIO

N

AMOUN

T IN

MILLIO

N

Cost of

Materials / Goods

8,969.3

0

8,152.9

0

Gross Sales

Less: Excise

Duty

19,857.

8

(526.6)

18,528.

80

(450.3)

Personnel Cost 2,140.6

0

1,747.1

0

Net Sales 19,331.

20

18,078.

50

Operating and

Other Expenses

5,340.4

0

4,720.4

0

Other

Operating

Income

11,715.

80

6,776.6

0

Research and

Development

Expenditure

1,355.9

0

1,277.7

0

Other Income 1,941.7

0

1,229.3

0

Depreciation /

Amortisation /

Impairment

642.3 694.7


5/12

PROFIT (B.F) 13,838.

00

8,986.5

0

Tax 702.2 505.1

TOTAL 32,988.7 26,084.4 TOTAL 32,988.7 26,084.4

P&L APPROPRIATION A/C OF SUN PHARMACEUTICAL INDUSTRIES LIMITED

As on 31st march 2011 and 31st march 2010

Particular Amou

nt

MILLI

ON

AMOU

NT

MILLLI

ON

PARTICUL

AR

AMOU

NT

MILLLI

ON

AMOU

NT

MIILLI

ON

TO Proposed

Dividend

3,624.5 2,847.9 BY NET

PROFIT

13,838.0 8,986.5

TO CorporateDividend Tax

588.0 473.0

TO Transfer to

General

Reserve

5,000.0 3,000.0


6/12

TO BAL C/D

(B.F)

4625.5 2665.6

TOTAL 1383

8

8986.

5

13838 8986.

5

1.Kd = interest (1 t) / face value

2011 = 5.9 ( 1- .21) / 505.3

= 5.9 (.79 )/ 505.3

= .00922

2010 = 4.4 (1- .21 ) / 294.9

= 0.0117

2. COST OF EQUITY :-

KE = D1/ P0 + G

2011 = 2.743 / 442 + 0

= 0.006205

2010 = 2.746 / 360

= 0.007677


7/12

P1 = 442 (market price as on 31st march 2011)

P0= 360 (market price as on 31st march 2010)

3. WACC ( Weighted Average Cost of Capital)

2011

particular (1) (2)

weighted

average

(3) 3 x 2

Equity 1,035.6 0.015 0.006205 0.000093

Reserves 65,769.7 0.977 0.006205 0.006062

Debts 505.3 0.007 0.00922 0.000065

TOTAL 67310.6 0.006216

Ko = 0.006216

2010


8/12

particular (1) (2)

weighted

average

(3) 3 x 2

Equity 1,035.6 0.018 0.007677 0.000138

Reserves 56,144.2 0.976 0.007677 0.007492

Debts 294.9 0.005 0.0117 0.0000585

TOTAL 57474.7 0.0076885

Ko = 0.0076885

4. EARNING PER SHARE :-

EPS = Profit after tax / total no. of equity share

2011 =13,838000000 / 1,035,581,955

= 13.362

2010 = 8986500000 / 1,035,581,955

= 8.677

5. DIVIDEND PER SHARE:-

DPS = total dividend paid / total no. of equity share

2011 = 2,841,000,000 / 1,035,581,955

= 2.743

2010 = 2843900,000 / 1,035,581,955

= 2.746


9/12

6. DIVIDEND PAYOUTRATIO :-

2011 =DPS/EPS

= 2.743/ 13.62

= 0.201

2010 = 2.746 / 8.667

= 0.3168

7. P/E RATIO :-

MPS / EPS2011 = 442 / 13.62

= 32.45

2010 = 360 / 8.677

= 41.48

8. ROCE (Return on capital employment) :-

PBT / capital employed


10/12

2011 = 14,540.2/ 61125.4

= 2.373

2010 = 9491.6 / 52570.2= 0.180

9. INTREST COVERAGE RATIO

EBIT/ INTREST PAID

2011 = 14546.1/ 5.9

= 2465.44

2010 = 9496 / 4.4

= 2158.18

Camparison Table

Particular 2011 2010 Campare

Cost of debt .00922 0.0117 It increase but compare earning is goodand better.

Cost of equity 0.006205 0.007677 Decrease but little and no impact ofcompany.

WACC 0.006216 0.0076885 Has down up but better and stable level.

EPS 13.362 8.677 EPS increase and good sign forcompany.

DPS 2.743 2.746 DPS is better and little decrease but noimpact of company position.


11/12

P/E Ratio 32.45 41.48 Price of market share is high. It scondition of company is good.

ROCE 2.373 0.180 Better compare to previous year. It isgood point of view investor.

Interest coverage Ratio 2465.44 2158.18 Company s earning is better and easilypay interest but compare to previous

year it is increase not good for company.

COMPARISON

PARTICUL

AR

2011 2012 ANALY

SIS

EPS 9.971 12.025 Becom

e

Better

DPS 6.5686 6.982 Better

P/E

RATIO

28.793 34.0997 Becom

e

better

DEBT

EQUITY

Nil nil No

change

ROCE 81.72% 77.10% Gone

down ,

still

very

good

ICR 12066 TIMES 2804 TIMES Gone


12/12

down,

but still

very

good

Cost of

Equity

2.286% 8% Has

increas

ed but

still

Cost of

Debt

Nil nil No

change

WACC 2.286% 7.992% Has

gone

up butvery

good

and

stable

level

V =

EBIT/WA

CC

2895.05/2.2

86%

=

3477.16/7.99

2%

=

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