Download - A Project Report Of SPIL
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SUN PHARMACEUTICAL
INDUSTRIES LIMITED
SUBMITTED TO SUBMITTED BY
PROFF- SAMRESH CHHOTRAY BHAWANEE SINGH
( PIBM, BHILWARA) ( PIBM, BHILWARA)
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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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%
=