INSTITUTE OF PROFESSIONAL EDUCATION & RESEARCH

ACCOUNTING FOR MANAGERS

ASSIGNMENT - 2

ON AVENTIS PHARMA

SUBMITTED TO SUBMITTED BY

Prof. Abhishek Jain Gourav Bajaj Manish Prajapati Manoj Mandloi Mansi Gangajaliwale MBA- 1ST (Sec 1) Group- 23

I. Comparative statement :- For 3 year

Balance Sheet of Aventis Pharma

------------------- in Rs. Cr.

-------------------      

PARTICULAR 2011 2010

Value chang

e change in %

Sources Of FundsTotal Share Capital 23.03 23.03 0 0Equity Share Capital 23.03 23.03 0 0Share Application Money 0 0 0 0Preference Share Capital 0 0 0 0Reserves 1,081.64 978.33 103.31 10.55Revaluation Reserves 11.96 12.79 -0.83 -6.48Networth 1,116.63 1,014.15 102.48 10.10Secured Loans 0 0 0 0Unsecured Loans 0 0 0 0Total Debt 0 0 0 0Total Liabilities 1,116.63 1,014.15 102.48 10.10

Application Of FundsGross Block 967.92 375.5 592.42 157.76Less: Accum. Depreciation 230.95 204.45 26.5 12.96Net Block 736.97 171.05 565.92 330.85Capital Work in Progress 30.23 13.3 16.93 127.29Investments 0.36 0.36 0 0Inventories 254.27 241.32 12.95 5.36Sundry Debtors 72.97 60.44 12.53 20.73Cash and Bank Balance 62.24 18.35 43.89 239.18Total Current Assets 389.48 320.11 69.37 21.67Loans and Advances 196.32 282.06 -85.74 -30.3Fixed Deposits 172 637 -465 -72.99Total CA, Loans & Advances 757.8 1,239.17 -481.37 -38.8Deffered Credit 0 0 0 0Current Liabilities 250.81 189.17 61.64 32.58

Provisions 157.93 220.56 -62.63 -28.39Total CL & Provisions 408.74 409.73 -0.99 -0.24Net Current Assets 349.06 829.44 -480.38 -57.91Miscellaneous Expenses 0 0 0 0Total Assets 1,116.62 1,014.15 102.47 10.10

Balance Sheet of Aventis Pharma

------------------- in Rs. Cr.

-------------------      

PARTICULAR 2010 2009Value

change change in %

Sources Of FundsTotal Share Capital 23.03 23.03 0 0Equity Share Capital 23.03 23.03 0 0Share Application Money 0 0 0 0Preference Share Capital 0 0 0 0Reserves 978.33 895.14 83.19 9.29Revaluation Reserves 12.79 13.63 -0.84 -6.16Networth 1,014.15 931.8 82.35 8.83Secured Loans 0 0 0 0Unsecured Loans 0 0 0 0Total Debt 0 0 0 0Total Liabilities 1,014.15 931.8 82.35 8.83

Application Of FundsGross Block 375.5 334.57 40.93 12.23Less: Accum. Depreciation 204.45 189.68 14.77 7.78Net Block 171.05 144.89 26.16 18.05Capital Work in Progress 13.3 27.14 -13.84 -50.99Investments 0.36 5.19 -4.83 -93.06Inventories 241.32 231.14 10.18 4.40Sundry Debtors 60.44 52.74 7.7 14.59Cash and Bank Balance 18.35 9.45 8.9 94.17Total Current Assets 320.11 293.33 26.78 9.12

Loans and Advances 282.06 173.52 108.54 62.55Fixed Deposits 637 576.5 60.5 10.49Total CA, Loans & Advances 1,239.17 1,043.35 195.82 18.76Deffered Credit 0 0 0 0Current Liabilities 189.17 173.4 15.77 9.09Provisions 220.56 115.37 105.19 91.17Total CL & Provisions 409.73 288.77 120.96 41.88Net Current Assets 829.44 754.58 74.86 9.92Miscellaneous Expenses 0 0 0 0Total Assets 1,014.15 931.8 82.35 8.83

Balance Sheet of Aventis Pharma

------------------- in Rs. Cr.

-------------------      

PARTICULAR 2009 2008Value

change change in %

Sources Of FundsTotal Share Capital 23.03 23.03 0 0Equity Share Capital 23.03 23.03 0 0Share Application Money 0 0 0 0Preference Share Capital 0 0 0 0Reserves 895.14 791.61 103.53 13.07Revaluation Reserves 13.63 14.46 -0.83 -5.73Networth 931.8 829.1 102.7 12.38Secured Loans 0 0 0 0Unsecured Loans 0 0 0 0Total Debt 0 0 0 0Total Liabilities 931.8 829.1 102.7 12.38

Application Of FundsGross Block 334.57 320.92 13.65 4.25Less: Accum. Depreciation 189.68 178.09 11.59 6.50Net Block 144.89 142.83 2.06 1.44Capital Work in Progress 27.14 6.25 20.89 334.24

Investments 5.19 5.19 0 0Inventories 231.14 172.55 58.59 33.95Sundry Debtors 52.74 89.5 -36.76 -41.07Cash and Bank Balance 9.45 23.37 -13.92 -59.56Total Current Assets 293.33 285.42 7.91 2.77Loans and Advances 173.52 164.53 8.99 5.46Fixed Deposits 576.5 474 102.5 21.62Total CA, Loans & Advances 1,043.35 923.95 119.4 12.92Deffered Credit 0 0 0 0Current Liabilities 173.4 151.33 22.07 14.58Provisions 115.37 97.79 17.58 17.97Total CL & Provisions 288.77 249.12 39.65 15.91Net Current Assets 754.58 674.83 79.75 11.81Miscellaneous Expenses 0 0 0 0Total Assets 931.8 829.1 102.7 12.38

Aventis Pharma        

Consolidated Profit & Loss account

------------------- in Rs. Cr.

-------------------      

PARTICULAR 2011 2010Value

change change in %

IncomeSales Turnover 1,324.50 1,166.08 158.42 13.58Excise Duty 31.41 24.17 7.24 29.9Net Sales 1,293.09 1,141.91 151.18 13.2Other Income 68.36 125.42 -57.06 -45.49Stock Adjustments 10.14 16.74 -6.60 -39.42Total Income 1,371.59 1,284.07 87.52 6.81Expenditure 0.00 0Raw Materials 629.29 557.08 72.21 12.96Power & Fuel Cost 27.08 21.08 6.00 28.46Employee Cost 176.42 163.25 13.17 8.06Other Manufacturing Expenses 32.68 36.45 -3.77 -10.34Selling and Admin Expenses 148.24 135.86 12.38 9.11

Miscellaneous Expenses 47.14 39.98 7.16 17.90Preoperative Exp Capitalised 0 0 0.00 0Total Expenses 1,060.85 953.7 107.15 11.23

Operating Profit 242.38 204.95 37.43 18.26PBDIT 310.74 330.37 -19.63 -5.94Interest 0.42 2.89 -2.47 -85.46PBDT 310.32 327.48 -17.16 -5.24Depreciation 31.15 19.74 11.41 57.80Other Written Off 0 0 0 0Profit Before Tax 279.17 307.74 -28.57 -9.28Extra-ordinary items 4.79 -10.28 15.07 -146.59PBT (Post Extra-ord Items) 283.96 297.46 -13.5 -4.53Tax 92.8 66.72 26.08 39.08Reported Net Profit 191.19 230.75 -39.56 -17.14Total Value Addition 431.56 396.61 34.95 8.81Preference Dividend 0 0 0 0Equity Dividend 76 126.67 -50.67 -40.00Corporate Dividend Tax 11.88 20.89 -9.01 -43.13Per share data (annualised) 0 0Shares in issue (lakhs) 230.31 230.31 0 0Earning Per Share (Rs) 83.01 100.19 -17.18 -17.14Equity Dividend (%) 330 550 -220 -40Book Value (Rs) 479.65 434.79 44.86 10.31

Aventis Pharma        

Consolidated Profit & Loss account

------------------- in Rs. Cr.

-------------------      

PARTICULAR 2010 2009Value

change change in %          IncomeSales Turnover 1,166.08 1,048.23 117.85 11.24Excise Duty 24.17 20.96 3.21 15.31Net Sales 1,141.91 1,027.27 114.64 11.15Other Income 125.42 49.18 76.24 155.02Stock Adjustments 16.74 61.89 -45.15 -72.95Total Income 1,284.07 1,138.34 145.73 12.80Expenditure 0.00 0Raw Materials 557.08 546.79 10.29 1.88

Power & Fuel Cost 21.08 19.5 1.58 8.10Employee Cost 163.25 143.95 19.30 13.40Other Manufacturing Expenses 36.45 30.33 6.12 20.17Selling and Admin Expenses 135.86 119.03 16.83 14.13Miscellaneous Expenses 39.98 28.8 11.18 38.81Preoperative Exp Capitalised 0 0 0.00 0Total Expenses 953.7 888.4 65.30 7.35

Operating Profit 204.95 200.76 4.19 2.08PBDIT 330.37 249.94 80.43 32.17Interest 2.89 0.07 2.82 4028.57PBDT 327.48 249.87 77.61 31.06Depreciation 19.74 17.34 2.4 13.84Other Written Off 0 0 0 0Profit Before Tax 307.74 232.53 75.21 32.34Extra-ordinary items -10.28 7.5 -17.78 -237.06PBT (Post Extra-ord Items) 297.46 240.03 57.43 23.92Tax 66.72 82.59 -15.87 -19.21Reported Net Profit 230.75 157.41 73.34 46.59Total Value Addition 396.61 341.62 54.99 16.09Preference Dividend 0 0 0 0Equity Dividend 126.67 46.06 80.61 175.01Corporate Dividend Tax 20.89 7.83 13.06 166.79Per share data (annualised) 0 0Shares in issue (lakhs) 230.31 230.31 0 0Earning Per Share (Rs) 100.19 68.35 31.84 46.58Equity Dividend (%) 550 200 350 175Book Value (Rs) 434.79 398.67 36.12 9.06

Aventis Pharma        

Consolidated Profit & Loss account

------------------- in Rs. Cr.

-------------------      

PARTICULAR 2009 2008Value

change change in %          Income

Sales Turnover 1,048.23 1,065.43 -17.20 -1.61Excise Duty 20.96 34.09 -13.13 -38.51Net Sales 1,027.27 1,031.34 -4.07 -0.39Other Income 49.18 53.12 -3.94 -7.41Stock Adjustments 61.89 -22.36 84.25 -376.78Total Income 1,138.34 1,062.10 76.24 7.17Expenditure 0.00 0Raw Materials 546.79 467.69 79.10 16.91Power & Fuel Cost 19.5 20.42 -0.92 -4.50Employee Cost 143.95 119.2 24.75 20.76Other Manufacturing Expenses 30.33 25.32 5.01 19.78Selling and Admin Expenses 119.03 145.53 -26.50 -18.20Miscellaneous Expenses 28.8 8.63 20.17 233.71Preoperative Exp Capitalised 0 0 0.00 0Total Expenses 888.4 786.79 101.61 12.91

Operating Profit 200.76 222.19 -21.43 -9.64PBDIT 249.94 275.31 -25.37 -9.21Interest 0.07 0.34 -0.27 -79.41PBDT 249.87 274.97 -25.1 -9.12Depreciation 17.34 18.21 -0.87 -4.77Other Written Off 0 0 0 0Profit Before Tax 232.53 256.76 -24.23 -9.43Extra-ordinary items 7.5 2.89 4.61 159.51PBT (Post Extra-ord Items) 240.03 259.65 -19.62 -7.55Tax 82.59 93.44 -10.85 -11.61Reported Net Profit 157.41 166.2 -8.79 -5.28Total Value Addition 341.62 319.1 22.52 7.05Preference Dividend 0 0 0 0Equity Dividend 46.06 36.85 9.21 24.99Corporate Dividend Tax 7.83 6.26 1.57 25.07Per share data (annualised) 0 0Shares in issue (lakhs) 230.31 230.31 0 0Earning Per Share (Rs) 68.35 72.16 -3.81 -5.27Equity Dividend (%) 200 160 40 25Book Value (Rs) 398.67 353.72 44.95 12.70

II. Common size statement :- For 3 years

Balance Sheet of Aventis Pharma

------------------- in Rs. Cr.

-------------------

         

         

Particular year 2011Percen

tyear 2010

Percent

year 2009

Percent

Sources Of FundsTotal Share Capital 23.03 2.06 23.03 2.27 23.03 2.47Equity Share Capital 23.03 2.06 23.03 2.27 23.03 2.47Share Application Money 0 0 0 0 0 0Preference Share Capital 0 0 0 0 0 0Reserves 1,081.64 96.86 978.33 96.46 895.14 96.06Revaluation Reserves 11.96 1.07 12.79 1.261 13.63 1.46Networth 1,116.63 100 1,014.15 100 931.8 100Secured Loans 0 0 0 0 0 0Unsecured Loans 0 0 0 0 0 0Total Debt 0 0 0 0 0 0Total Liabilities 1,116.63 100 1,014.15 100 931.8 100

Application Of FundsGross Block 967.92 86.68 375.5 37.02 334.57 35.90Less: Accum. Depreciation 230.95 20.68 204.45 20.15 189.68 20.35Net Block 736.97 66.00 171.05 16.86 144.89 15.54Capital Work in Progress 30.23 2.70 13.3 1.31 27.14 2.91Investments 0.36 0.03 0.36 0.035 5.19 0.55Inventories 254.27 22.77 241.32 23.7 231.14 24.80Sundry Debtors 72.97 6.5 60.44 5.95 52.74 5.66Cash and Bank Balance 62.24 5.57 18.35 1.80 9.45 1.01Total Current Assets 389.48 34.88 320.11 31.56 293.33 31.47Loans and Advances 196.32 17.58 282.06 27.81 173.52 18.62Fixed Deposits 172 15.40 637 62.81 576.5 61.86

Total CA, Loans & Advances 757.8 67.86 1,239.17 122.18 1,043.35111.9

7Deffered Credit 0 0 0 0 0 0Current Liabilities 250.81 22.46 189.17 18.65 173.4 18.60Provisions 157.93 14.14 220.56 21.74 115.37 12.38Total CL & Provisions 408.74 36.60 409.73 40.40 288.77 30.99

Net Current Assets 349.06 31.26 829.44 81.78 754.58 80.98Miscellaneous Expenses 0 0 0 0 0 0Total Assets 1,116.62 100 1,014.15 100 931.8 100

Aventis Pharma Profit & Loss account

------------------- in Rs. Cr.

-------------------

         

         

Particular year 2011 Percentyear 2010

Percent

year 2009

Percent

Income

Sales Turnover 1,324.50 102.42 1,166.08 102.11 1,048.23102.0

4Excise Duty 31.41 2.42 24.17 2.11 20.96 2.04Net Sales 1,293.09 100 1,141.91 100 1,027.27 100Other Income 68.36 5.28 125.42 10.98 49.18 4.78Stock Adjustments 10.14 0.78 16.74 1.46 61.89 6.02

Total Income 1,371.59 106.07 1,284.07 112.44 1,138.34110.8

1Expenditure 0 0 0Raw Materials 629.29 48.66 557.08 48.78 546.79 53.22Power & Fuel Cost 27.08 2.09 21.08 1.84 19.5 1.89Employee Cost 176.42 13.64 163.25 14.29 143.95 14.01Other Manufacturing Expenses 32.68 2.52 36.45 3.19 30.33 2.95Selling and Admin Expenses 148.24 11.46 135.86 11.89 119.03 11.58Miscellaneous Expenses 47.14 3.64 39.98 3.50 28.8 2.80Preoperative Exp Capitalised 0 0 0 0 0 0Total Expenses 1,060.85 82.03 953.7 83.51 888.4 86.48

0 0 0Operating Profit 242.38 18.74 204.95 17.94 200.76 19.54PBDIT 310.74 24.03 330.37 28.93 249.94 24.33Interest 0.42 0.03 2.89 0.25 0.07 0.004PBDT 310.32 23.99 327.48 28.67 249.87 24.32Depreciation 31.15 2.40 19.74 1.72 17.34 1.68Other Written Off 0 0 0 0 0 0Profit Before Tax 279.17 21.58 307.74 26.94 232.53 22.63Extra-ordinary items 4.79 0.37 -10.28 -0.90 7.5 0.73

PBT (Post Extra-ord Items) 283.96 21.95 297.46 26.04 240.03 23.36Tax 92.8 7.17 66.72 5.84 82.59 8.039Reported Net Profit 191.19 14.78 230.75 20.20 157.41 15.32Total Value Addition 431.56 33.37 396.61 34.73 341.62 33.25Preference Dividend 0 0 0 0 0 0Equity Dividend 76 5.87 126.67 11.09 46.06 4.48Corporate Dividend Tax 11.88 0.91 20.89 1.82 7.83 0.76Per share data (annualised) 0 0 0Shares in issue (lakhs) 230.31 17.81 230.31 20.16 230.31 22.41Earning Per Share (Rs) 83.01 6.41 100.19 8.77 68.35 6.65Equity Dividend (%) 330 25.52 550 48.16 200 19.46Book Value (Rs) 479.65 37.09 434.79 38.07 398.67 38.80

III. Ratios analysis :-

Key Financial Ratios of Aventis Pharma

Dec '11 Dec '10 Dec '09 Dec '08

Investment Valuation RatiosFace Value 10 10 10 10Dividend Per Share 33 55 20 16

Key Financial Ratios of Aventis Pharma

Dec’11 Dec”10 Dec”09 Dec”08

Profitability Ratios

Operating Profit Margin(%) 18.74 17.94 19.54 21.54Profit Before Interest And Tax Margin(%)

15.51 15.5 17.06 18.82

Gross Profit Margin(%) 16.33 16.22 17.85 19.77Net profit margin(%) 14.04 19.32 14.64 15.33Return On Capital Employed(%)

25.33 23.72 25.12 31.45

Return On Net Worth(%) 17.3 23.04 17.14 20.4Adjusted Return on Net Worth(%)

16.89 16.77 16.11 19.94

Return on Assets Excluding Revaluations

479.65 434.79 398.67 353.72

Return on Assets Including Revaluations

484.84 440.35 404.59 360

Key Financial Ratios of Aventis Pharma

Dec”11 Dec”10 Dec”09 Dec’08

Liquidity And Solvency Ratios

Current Ratio 1.85 3.02 3.61 3.71Quick Ratio 1.18 2.37 2.71 2.9Interest Cover 672.69 82.2 3,104.31 752.5

Key Financial Ratios of Aventis Pharma

Dec’11 Dec’10 Dec’09 Dec’08

Management Efficiency Ratios

Inventory Turnover Ratio 5.21 4.83 4.54 6.17Debtors Turnover Ratio 19.39 20.18 14.44 14.03Investments Turnover Ratio 5.21 4.83 4.54 6.17Fixed Assets Turnover Ratio 3.17 3.27 3.35 3.51Total Assets Turnover Ratio 2.37 1.17 1.15 1.31Asset Turnover Ratio 3.17 3.27 3.35 3.51

Key Financial Ratios of Aventis Pharma

Dec’11 Dec’10 Dec’09 Dec’08

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit

45.96 63.94 34.23 25.93

Dividend Payout Ratio Cash Profit

39.52 58.9 30.83 23.37

IV. Trend analysis :-

Investment Valuation Ratios 2011 2010 2009 2008

Face Value 100% 100% 100% 100%

Dividend Per Share 206.25% 343.75% 125% 100%

Dec '11 Dec '10 Dec '09 Dec '080

50

100

150

200

250

300

350

400

Face ValueDividend Per Share

Interpretation :- Face value are constant but dividend are more changes .

Profitability Ratios

Dec '11 Dec '10 Dec '09 Dec '08

Operating Profit Margin(%)

87.00093 83.28691 90.71495 100

Profit Before Interest And Tax Margin(%)

82.41233 82.35919 90.64825 100

Gross Profit Margin(%)

82.5999 82.0435 90.28832 100

Net Profit Margin(%)

91.58513 126.0274 95.49902 100

Return On Capital Employed(%)

80.54054 75.4213 79.87281 100

Return On Net Worth(%)

84.80392 112.9412 84.01961 100

Adjusted Return on Net Worth(%)

84.70411 84.10231 80.79238 100

Return on Assets Excluding Revaluations

135.6016 122.9193 112.7078 100

Return on Assets Including Revaluations

134.6778 122.3194 112.3861 100

0

40

80

120

160

Dec '11Dec '10Dec '09Dec '08

Interpretation :- return on assets are very high compression to all .

Liquidity And Solvency Ratios

Dec '11 Dec '10 Dec '09 Dec '08

Current Ratio 49.86523 81.40162 97.30458 100Quick Ratio 40.68966 81.72414 93.44828 100Interest Cover 89.39402 10.92359 412.5329 100

Dec '11 Dec '10 Dec '09 Dec '080

50

100

150

200

250

300

350

400

450

Current RatioQuick RatioInterest Cover

Interpretation:- The interest cover ratio is big fluctuation in this graph .

Management Efficiency Ratios

Dec '11 Dec '10 Dec '09 Dec '08

Inventory Turnover Ratio

84.44084 78.28201 73.58185 100

Debtors Turnover Ratio

138.2038 143.8346 102.9223 100

Investments Turnover Ratio

84.44084 78.28201 73.58185 100

Fixed Assets Turnover Ratio

90.31339 93.16239 95.4416 100

Total Assets Turnover Ratio

180.916 89.31298 87.78626 100

Asset Turnover Ratio

90.31339 93.16239 95.4416 100

Inve

ntor

y Tu

rnov

er R

atio

Debto

rs T

urno

ver R

atio

Inve

stm

ents

Tur

nove

r Rat

io

Fixe

d As

sets

Tur

nove

r Rat

io

Tota

l Ass

ets Tu

rnov

er R

atio

Asse

t Tur

nove

r Rat

io

020406080

100120140160180200

Dec '11Dec '10Dec '09Dec '08

Interpretation:- Total assets turnover ratio is big jump for 2011.

Cash Flow Indicator Ratios

Dec '11 Dec '10 Dec '09 Dec '08

Dividend Payout Ratio Net Profit

177.2464 246.587 132.0093 100

Dividend Payout Ratio Cash Profit

169.1057 252.0325 131.9213 100

Dec '11 Dec '10 Dec '09 Dec '080

50

100

150

200

250

300

Dividend Payout Ratio Net ProfitDividend Payout Ratio Cash Profit

Interpretation:- To both are similar but the 2011 is down fall the profit .

The Main Interpretation :- The Aventis Pharma is better condition for 3years ago .

Thank you

Year 2011 Year 2010 Year 2009 Year 200880

90

100

110

120

130

140

RevenuesCost Of SalesGross Profit