Pharmaceutical industry

Sun Pharmaceutical Ltd CMP 1298

Sun Pharma is one of the top ten Indian pharmaceuticals companies with a very strong presence and with 9.22% share according to Herfindahl index. Major part of its revenue comes from exports which contributes 55% of total sales.

The company has outperformed the industry which grew at the rate of 13% for the FY 2007-08 whereas sun Pharma grew by 16% in the same period

The expected price band is in the range of 1686-2019. In 2007-08 the PAT grew by about

61.23%

Stock Market Performance

Sun Pharma outperforms sensex

For the last six months share prices of sun Pharma has outperformed sensex. The reason can be attributed to various approvals from USFDA to market its variety of drugs (cerebyx, generic ethyol, and generic tessalon), 30 ANDA’s have been filed, launch of generic amifostine injection and approval for anticancer injection. Sun Pharma also acquired Able Labs Facility for USD 23.15 million and is also in process to acquire Taro Pharma. Sun Pharma has also converted remaining FCCB’S which were due in March 2009 with no FCCBs outstanding. Sun Pharma in acquisition phase to expand its market beyond 30 market which the company serving currently.

2 April 2007 6 June 2007 7 August 2007 10 October 2007 11 Dec 2007 13 February 2008 22 April 2008 25 June 2008 0

20

40

60

80

100

120

140

160

0

50

100

150

200

250

300

350

RELATIVE INDEX

sun pharma (LHS) sensex (RHS) healthcare(LHS)

% %

ContentsSun Pharma outperforms sensex................................................................................................................2

1. INVESTMENT RATIONALE.................................................................................................... 5

1.1 1.1 Industry growing steadily................................................................5

1.2 1.2 Growth is driven by Exports............................................................5

1.3 1.3 Increasing R&D Focus....................................................................5

2. KEY CONCERNS......................................................................................................................... 6

1.4 2.1 Exchange Rate Fluctuation.............................................................6

1.5 2.2 Competition from fragmented players............................................6

1.6 2.3 Government Regulation..................................................................6

1.7 2.4 Long time in the R&D process........................................................6

1.8 2.5Stringent regulations abroad...........................................................7

3. FINANCIAL ASSUMPTIONS.................................................................................................... 7

1.9 3.1 Financial Forecast...........................................................................7

1.10...................................................................................................3.2 Key assumptions7

4. ENTERPRISE VALUATION..................................................................................................... 8

1.11......................................................................................................4.1 DCF Sensitivity8

1.12........................................................................................................4.2 DCF Valuation9

1.13............................................................................................................................................9

1.14................................................................................................4.3 Relative Valuation9

5. INDUSTRY OUTLOOK........................................................................................................... 10

1.15.................................................................5.1 Industry Value Chain & Structure10

1.16.....................................................................................5.2 Michael Porter Analysis11

1.17.............................................................................................5.3 GROWTH DRIVERS12

6. BUSINESS ANALYSIS............................................................................................................. 13

1.18.........................................................................................6.1 Company background13

1.19......................................................................................................6.2 Revenue Model14

1.20..........................................................................................6.3 Key Business Drivers14

7. ISSUES & CONCERNS............................................................................................................. 14

8. FINANCIAL & PROJECTIONS............................................................................................... 15

1.21.............................................................................................Profit and Loss Account15

1.22................................................................................................................Balance Sheet16

1.23.................................................................................................Cash Flow Statement17

1. Investment Rationale

1.1 Industry growing steadilyThe Indian Pharmaceutical Industry is highly fragmented with around thousands of players and an estimated size of US$ 12.8bn. A major share of

the revenue comes from exports. It is expected to reach market size of US$18.8bn by 2010. Industry is 4th in terms of global volume and 13th in terms of value. The industry is self sufficient and a low cost producer of high quality bulk drugs & formulations. According to KPMG report, Indian pharmaceutical industry, which has grown at 1.5 to 1.6 times the growth of the economy over the past couple of years, is well positioned for sustainable growth and expansion. The industry has grown at a CAGR of 13 per cent from 2002-2007. The industry is expected to grow at CAGR of 16% in 2007-11. Industry is likely to become one among the top ten pharmaceuticals market in the next decade.

1.2 Growth is driven by ExportsDuring the quarter ended march 2008, exports witnessed growth of more than 200% compared to corresponding period last year. This increase in exports can be contributed to the fact that huge demand for Indian formulation and API’s because of significant cost arbitrage and innovative scientific manpower. Sun Pharma exports its product to 30 countries including US, Europe and Japan.

1.3 Increasing R&D FocusDuring the quarter ended march 2008, R&D expenditure as a % of sales is 6.45% at Rs 826.4 million. In the coming year expenditure on R&D will increase due to deduction in R&D outsourcing as announced in the government budget and sun Pharma is also in growth stage. Success in Pharma industry is dependent on new drugs which come through Research & Development. R&D is a very costly and a time consuming process as it usually takes about 5-10 years before a molecule comes out as a drug in the market. Sun Pharma is committed to fuel its growth through R&D and has spent about 9.1% of its net sales on R&D in 2007-08.

OND06 JFM07 AMJ07 JAS07 OND07 JFM080.0

100.0200.0300.0400.0500.0600.0700.0800.0900.0

0246810121416

R&D as a %of sales

R&D EXPENSE % OF SALES

Rs. millio

n %

2. Key concerns

2.1 Exchange Rate Fluctuation

A major part of the revenue for Sun Pharma come through exports (55 %) and such the revenues are affected with the fluctuations in the exchange rate. US continue to be a strong territory for Sun Pharma as far as the export sales are concerned. Company has got approved many drugs by USFDA with 180 days marketing exclusivity. However the recent rupee deprecation will help boost the bottom line. But volatility remains in the exchange rate sometimes putting the margins under pressure.

2.2 Competition from fragmented playersThe size of the industry is highly fragmented with about 24000 players out of which only 330 players are in the organized sector. The huge size of the industry increases competition as many companies are making the same product. Other concerns are the patent rights after which no other company can produce same drug.

2.3 Government RegulationThe prices of certain drugs are controlled by National Pricing Pharmaceuticals Authority (NPPA) which limits the ability of the company to charge prices.

2.4 Long time in the R&D processThe success of the Pharma companies depends on the discovery of new drugs. However the process of drug discovery usually takes a very long period of time as it has to pass through various stages of clinical research. Till the time new drugs are discovered by the company the company’s growth is dependent on manufacturing and marketing of off patented drugs. For Sun Pharma, research and development is to keep replenishing a pipeline of products is vital, as is innovation that works on totally new-to-the-world product ideas. In India and in markets like India, they bring to market the latest molecules, often using complex delivery systems that help improve the quality of life.

2.5Stringent regulations abroadAll Indian Pharmaceutical companies who wish to enter regulated markets like USA have to follow regulations of that country. In US FDA approvals are required for any company to market their products and hence it is not very easy to enter regulated markets.

3. Financial Assumptions

3.1 Financial ForecastSun Pharma’s revenue during the year 2008-09 is expected to touch RS 45409.12 mn showing an impressive increase of 42% from the last year revenue of Rs32768.40 mn. The EBITDA will grow by 6.96% to touch 2338 mn in FY 09 from Rs 1971.10 mn in FY 08. PAT is likely to increase to Rs 12936.48 mn in FY 09 up from Rs 10140.40 mn in FY 08.

3.2 Key assumptionsRevenue

The total revenue of the company is derived from domestic sales and exports to advanced and emerging markets. In the year 2007-08 company has increased its exports base by entering into new markets with total exports up to 55% of total sales. The past trends and the policies of the company give an idea that the share of export revenue is likely to increase when compared to domestic sales. Hence the share of domestic sales is decreasing and exports are increasing year after year. Although we are positive on the fundamentals of sun Pharma but it is likely to face competition as other players are expected to launch similar products in US.

CAPEX

The company’s capital expenditure is 12.62% of total sales for year 2008 touching Rs 2987.41 mn. For the next two year this is expected to increase due to company’s expansion plans. The debt equity ratio has come down to .42 because company has converted all the outstanding FCCB’s and repay all the ECB’s. Company has huge reserves, for the year ended march 08, reserves account for massive Rs. 41040 mn.

Operational Expenses

Total Expenses average around 91.67% of the total sales and all other expenses have been calculated as a proportion of total expenses. Total expenses for FY 09 & FY 10 have been projected at 95% of the sales respectively.

Staff Cost at present is 6.07% of its total sales. For the projected period the staff cost is expected to be in the range of 6-7% of total sales. The staff cost is expected to increase if the company goes expansion.

Other Expenses constitute around 21% of the total sales which constitute R&D expenses and other administrative expense. This is tend to increase as company is focusing on more and more R&D with 2 centres and 550 scientist

Depreciation as % of total sales is 2.37% and for the next two years it is assumed to be2-3% of total sales.

Tax Rate is assumed to be 3.63 % of total sales.

Dividend is distributed at the rate of 35 % of PAT.

4. Enterprise Valuation

4.1 DCF SensitivityThe DCF valuation is relatively sensitive to the continuing growth rate and the discounting factor used. The WACC is 8.21%and the sustainable growth rate is assumed to be 8%. We have analyzed the DCF sensitivity with respect to different scenarios with different combinations of growth rates

and cost of capital.

4.2 DCF Valuation

DCF VALUATION             Rs in

mn 

  FY06 FY07 FY08 FY09(E) FY10(E) FY11(E) FY12(E)Revenue 12916.40 16625

.6023656.

4033594.3

047707.2

757248.7

368698.4

7EBIT -266.30 -

1009.20

1410.00

1585.00 -2685.75 3223.10 3867.72

% of Revenues -2.06 -6.07 5.96 4.72 -5.63 5.63 5.63Depreciation 407.30 462.7

0561.10 753.00 1010.53 1230.85 1477.02

% of Revenues 3.15 2.78 2.37 2.24 2.12 2.15 2.15EBITDA 141.00 -

546.50

1971.10

2338.00 -1675.22 2289.95 2747.94

% of Revenues 1.09 -3.29 8.33 6.96 -3.51 4.00 4.00Less: Cash Tax 73.80 56.30 -

390.75-88.42 -171.24 -239.33 -441.69

NOPLAT 67.20 -602.8

0

2361.85

2426.42 -1503.98 4693.28 5786.43

Capex -1150.70 -955.5

0

-2987.4

1

-3885.19 -3052.83 -3663.92 -4396.70

Changes in WC -4356.80 204.80

-10226.

28

1794.73 1069.33 1282.37 1538.85

Post Tax Non-operating cash flows

4864.27 7280.21

8781.54

11406.29

14629.87

17747.11

21296.53

Free Cash Flows -576.03 5926.71

-2070.3

0

11742.24

11142.38

20058.83

24225.10

        it is assumed that beyond FY 12 cash flow will grow @8%

PV of Estimated FC Flows

      11742.24

11142.38

20058.83

24225.10

4.3 Relative Valuation

5. Industry Outlook

5.1 Industry Value Chain & StructureValue chain is a set of activities required to design, procure, produce, market, distribute, and service a product or service. In other words, the sequential set of primary and support activities that an enterprise performs to turn inputs into value-added outputs for its external customers.

Companies are Reducing R&D expenses by tying up with colleges

Industry Structure

The size of the Indian Pharmaceuticals industry is quite fragmented with about 24000 players out of which only 330 players are in the organized sector. Some of the major players are Dr. Reddy’s Lab, Ranbaxy, Cipla, Nicholas Piramal, Cadila, Wockhardt, Glen mark etc.

ANDA, US-FDA filing

Manufacturing Sales and Marketing

Approval of samples

Testing samples

Drug Development

Drug Discovery

Clinical certificate

5.2 Michael Porter Analysis

FIVE FORCES EFFECTS REASONS

Threats of Entry Low to Moderate For off patented drugs

entry barriers are not

too high.

Bargaining power of

Buyers

Low Prices of many drugs are

regulated

Bargaining power of

Suppliers

Low There are many

suppliers in the

unorganized sector

Threats of Substitutes No Medicine has no

substitute except for

alternative therapies

Competition Rivalry Very high Intense because no. of

players are too many

5.3 GROWTH DRIVERSAccording to a KPMG, Indian Pharma industry is expected to grow at a CAGR of 16% for next five years. The major growth drivers are:

A. Outsourcing opportunities-

India is one of the most preferred outsourcing destinations for:

a) Contract Manufacturing- Indian Pharmaceutical Industry has one of the best manufacturing facilities and has the ability to manufacture low cost products due to its significant cost arbitrage. The outsourcing opportunity is estimated at $20bn and is expected to reach $31bn by 2010

b) Contract research- India’s innovative R&D is attracting a lot of contract Research Activities which is expected to reach $24bn by 2010($14 in 2006) the outsourcing of contract research is fuelled by large number of products going off patent along with declining R&D productivity.

B. Government Support

The government is also supporting Pharma Industry through-

Tax exemption on clinical research & trials services. Innovative funding models to encourage R&D activities. 125% deductions for R&D outsourcing. Cut in custom duty and excise duty on certain drugs. 100% FDI is also permissible for the manufacture of Drugs and

Pharmaceuticals. Pharma majors tying up with colleges to cut R&D expenses Establishment of SEZ’s Union budget 2008-09 declared Rs. 100 crores for drugs and

pharmaceutical research. Tax holidays and sops in different part of the country like

Himachal Pradesh, Sikkim, Jammu and Kashmir

C. Changing Demographics & Life style Diseases

The ageing population in India is rising fast leading to the more consumption of drugs. Moreover the disease profile is changing from infectious to life style related diseases like cardiovascular, nervous system related and obesity. Life style related drugs are higher value drugs further driving the sales of Pharma companies. Increasing health awareness and rising real income has also led to growth of the Pharma companies.

D. Mergers and acquisition

In the Pharma industry, companies are looking to acquire companies through which they can fetch new markets abroad and also going in for tie ups so that there cost is cut, use their technologies and strategic partnership which will benefit both.

6. BUSINESS ANALYSIS

6.1 Company background Sun Pharma was founded by DILIP S. SHANGHVI, Chairman and Managing Director of the company in 1982 and operations started in 1983. Headquarters of the company is located in Mumbai. The company is engaged in manufacturing of formulations and API (Active Pharmaceutical Ingredients). Manufacturing plants of the company are situated in silvassa, dadra, halol, vapi, Ahmednagar, Tamil Nadu, Vadodra, Jammu, Ankleswar, Panoli and Hungary.

Shareholding pattern as on March 08, shows that promoters have majority stake with 64% share with them whereas institutions have stake of 25% and other non institutions have 11% stake in the company.

64%

25%

11%

Shareholding Pattern as on march08

Promoter Institutions Non Institutions

6.2 Revenue Model Formulations and API’s are the two basic revenue stream for the company. Company produces high quality of API’s and formulations for the domestic market and abroad also. Company exports 55% of the total production to as many as 30 countries and is also looking at other acquisition to increase its revenue stream.

6.3 Key Business DriversGrowth drivers for sun Pharma which includes recent incentives given by central government in the budget 2008 for R&D i.e. 125% deduction in outsourcing of R&D activity and other includes cut in excise duty as well as in custom duty of specific drugs which may bring down cost of production for the company. Acquisition of Able labs and ongoing acquisition of Taro Pharma which will open up new markets for the company and more product launches in the offing, several approved by USFDA will add to top line of company. Value drivers for sun Pharma which fuels the bottom line i.e. profit of the company being outsourcing of R&D activities and company is also looking at higher capacity utilization for the existing plants and believes in conserving resources. Other value drivers are income from the share of partnership companies. Other income is the major component of PAT for Sun Pharma.

7. Issues & Concerns

Price Regulations

Prices for scheduled bulk drugs are fixed by NPPA to make them available at fair price from different manufactures. There is other limitation of pricing authority which hampers the company’s profitability and without permission no new drug can be imported.

Multiple indirect taxes

DOMESTIC45%EXPORTS

55%

revenue segment

Pharma industry in India is facing multiple indirect taxes like customs duty on import of goods, excise duty on manufacture of goods, VAT and CST on sale of goods which fuels up the cost of production and results in high prices.

Duplication of drugs

Fake & counterfeit drugs are manufactured and sold in large quantities which affect the ethical sales of Pharma companies. The current size of fake drugs market in India is Rs15000cr out of which Rs300cr alone is sold in NCR. The growth in fake drugs is due to the shortage of drug inspector and a weak drug distribution system.

High Attrition Rate

In spite of industries high employment growth rate, attrition is common for the Pharma companies. This is due to less motivation and low salaries whereas poor management, less opportunities for advancement, ethical issues, high stress and burn out are other reason for high attrition rate in this industry.

High cost of R&D

In order to compete with the global players the Pharma companies need to a spend huge amount on R&D. Rising interest rate further makes the borrowings very expensive and hence difficult to compete.

Rupee Impact

When rupee appreciates against US dollar, margins are badly affected. However its impact may be offset to some extent for those companies who are importing their raw material from outside. But nowadays rupee is depreciating against US $ so, bottom line will fuel up for the company

8. Financial & Projections

Profit and Loss AccountRs in million

Particulars FY04 FY05 FY06 FY07 FY08 FY09( FY10(

E) E)Net Sales 9347.

409956.

2012916

.4016625

.6023656

.4033594.

3047707.

27% Growth 0% 6.51% 29.73

%28.72

%42.29

%42.01

%42.01

%Total Revenue 10552

.7012468

.1018069

.5024040

.2032768

.4045409.

1262927.

95% Growth 0% 18.15

%44.93

%33.04

%36.31

%38.58

%38.58

%EXPENDITURES              Staff Costs 563.9

0653.1

0820.1

0988.7

01435.

602049.2

52174.2

6% of Net Sales 6% 6.56% 6.35% 5.95% 6.07% 6.10% 6.10%Other Manufacturing/Operating costs

4713.20

6616.30

9266.90

13142.80

15271.60

24041.89

41248.67

% of Net Sales 50% 66.45%

71.75%

79.05%

64.56%

71.57%

71.57%

Miscellaneous Expenses 2094.00

1635.60

2688.40

3040.60

4978.10

5165.17

5959.57

% of Net Sales 22% 16.43%

20.81%

18.29%

21.04%

15.38%

15.38%

Total Expenditures 7371.10

8905.00

12775.40

17172.10

21685.30

31256.31

49382.50

% of Net Sales 79% 89.44%

98.91%

103.29%

91.67%

93.04%

57.99%

EBITDA 1976.30

1051.20

141.00

-546.5

0

1971.10

2338.00

-1675.2

2EBITDA Margin % 21% 10.56

%1.09% -

3.29%8.33% 6.96% -3.51%

Growth %   -46.81

%

-86.59

%

-487.5

9%

-460.6

8%

18.61%

-171.65

%Depreciation & Amortization 232.1

0287.7

0407.3

0462.7

0561.1

0753.00 1010.5

3EBIT 1744.

20763.5

0-

266.30

-1009.

20

1410.00

1585.00

-2685.7

5Financial Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00Other Income 1205.

302511.

905153.

107414.

609112.

0011814.

8115312.

00PBT 2949.

503275.

404886.

806405.

4010522

.0013399.

8112626.

25

Pre-tax Margin % 31.55%

32.90%

37.83%

38.53%

44.48%

39.89%

26.47%

Tax 145.30

177.70

273.90

116.10

381.60

463.33 562.48

Effective Tax Rate % 5% 5.43% 5.60% 1.81% 3.63% 3.46% 4.45%Adjusted PAT 2804.

203097.

704612.

906289.

3010140

.4012936.

4812063.

76Net Profit Margin % 30% 31.11

%35.71

%37.83

%42.87

%38.51

%25.29

%Growth in Adjusted PAT % 0% 10.47

%48.91

%36.34

%61.23

%27.57

%-6.75%

Extraordinary Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00Reported PAT 2804.

203097.

704612.

906289.

3010140

.4012936.

4812063.

76Shares In Issue 190.0

7185.5

1185.6

9193.4

3193.4

3193.43 193.43

Adjusted EPS 14.75 16.70 24.84 32.52 52.43 66.88 62.37Growth % 0% 13.18

%48.77

%30.89

%61.23

%27.57

%-6.75%

               Dividend paid 0 0 0 0 3549 4528 4222Dividend payout ratio 0.00 0.00 0.00 0.00 0.35 0.35 0.35Net profit transferred to Reserves Account

2804.20

3097.70

4612.90

6289.30

6591.40

8408.48

7841.76

Balance Sheet

Particulars FY05 FY06 FY07 FY08 FY09(E) FY10(E)

Gross Asset 6,120.50

7442.60 8387.00 11,264.95

15,132.57

18,159.08

Accumulated Depreciation

1,729.00

2080.70 2494.10 3,055.20

3,808.20

4,818.73

Capital WIP 479.40 308.00 319.10 428.56 446.13 472.45 Net Fixed Asset 4,870.

905,669.9

06,212.0

08,638.3

111,770.

5013,812.80

Investments 9,852.40

7796.20

10574.90

12,689.88

16,116.15

19339.38

gross asset turnover ratio

162.67%

173.55%

198.23%

210.00%

222.00%

262.72%

Current Asset 17,545.30

22,574.30

21,874.40

32,383.78

30,677.60

29,502.27

total asset 32,268.60

36,040.40

38,661.30

46,385.10

58,937.38

70,724.85

Cash 8,900.30

12309.80

12026.80

21,744.01

19,545.53

17,882.70

Other Current Assets 45.00 304.60 327.00 359.00 391.00 418.20 Inventories 1,866.

202634.10 3333.80 4,078.9

74812.77 5,546.57

Trade Debtors 2,349.70

2564.70 3100.00 3,421.77

3796.92 4172.07

Loans and Advances 4,384.10

4761.10 3086.80 2,780.03

2131.38 1,482.73

total asset turnover ratio 0.31 0.36 0.43 0.51 0.57 0.67Current Liabilities & Provisions

2,214.60

2886.80

2391.70

2,674.80

2763.35

2657.35

Net Current Asset Excluding Cash

6,430.40

7,377.70

7,455.90

7,964.97

8,368.72

8,962.22

Miscellaneous Items            Deferred Tax (Net)            Capital Deployed 30,05

4.0033,153.

6036,269.

6051,037.

1755,800.

8959,997.10

current asset turnover ratio

0.567457

0.5721728

0.7600483

0.7305016

1.0950762

1.617071406

Non-Current Liabilities            Secured Debt 139.2 183.90 203.90 0 0.00 0.00Non-secured debt & Trade deposit

18,007.30

17275.90

10477.60

7,723.90

3959.05 194.20

Deferred Tax Liabilities 853.00 1044.40 1093.20 1,237.07

1357.17 1477.27

Total Liabilities 18,999.50

18,504.20

11,774.70

8,960.97

5,316.22

1,671.47

Contingent Liabilities            Share Capital 941.70 942.70 980.70 1,035.6

01,035.6

01,035.60

Reserve and Surplus 10112.8

13706.70

23514.20

41,040.60

49,449.08

57290.03

Total Stock Holder's Equity

11,054.50

14,649.40

24,494.90

42,076.20

50,484.68

58,325.63

  30,054.00

33,153.60

36,269.60

51,037.17

55,800.89

59,997.09

Capital Employed 30,054.00

33,153.60

36,269.60

51,037.17

55,800.89

59,997.09

Cash Flow StatementCash Flow from Operating Activities  FY06 FY07 FY08 FY09( FY10(

E) E)PAT 4612.9

06289.3

010140.

4012936.

4812063.

76Add:

Depreciation 351.70 413.40 561.10 753.00 1010.53

Add:

Interest Expense 0.00 0.00 0.00 0.00 0.00

Add:

Other Non-Cash Charges 0.00 0.00 0.00 0.00 0.00

Add:

Direct taxes paid 273.90 116.10 381.60 463.33 562.48

Operating Profit Before WC Changes

5238.50

6818.80

11083.10

14152.81

13636.77

           Changes in Current Assets (excluding cash)

(1619.50)

416.90 (792.17)

(492.30)

(487.50)

Changes in Current Liabilities 672.20 (495.10)

283.10 88.55 (106.00)

Changes In WC (947.30)

(78.20) (509.07)

(403.75)

(593.50)

Cash Generated From Operations

4291.20

6740.60

10574.03

13749.06

13043.27

Less:

Direct Taxes Paid 273.90 116.10 381.60 463.33 562.48

  Others 0.00 0.00 0.00 0.00 0.00Net Cash Generated From Operations

4017.30

6624.50

10192.43

13285.73

12480.79

           Cash Flow from Investing ActivitiesCapital Expenditure (CAPEX) (1150.7

0)(955.5

0)(2987.

41)(3885.

19)(3052.

83)Investments 2056.2

0 (2778.

70)(2114.

98)(3426.

27)(3223.

23)Net Cash Used In Investing Activities

905.50 (3734.20)

(5102.39)

(7311.46)

(6276.06)

           Cash Flow from Financing ActivitiesChange in Debt (495.30

)(6729.

50)(2813.

73)(3644.

75)(3644.

75)Change in Equity 1.00 38.00 54.90 0.00 0.00Dividends Paid 0.00 0.00 (3549.

00)(4528.

00)(4222.

00)Interest Paid 0.00 0.00 0.00 0.00 0.00

Others (1019.00)

3518.20

10935.00

0.00 (0.81)

Net Cash used in Financing Activities

(1513.30)

(3173.30)

4627.17

(8172.75)

(7867.56)

Net Increase in Cash and Cash Equivalents

3409.50

(283.00)

9717.21

(2198.48)

(1662.83)

Cash and cash equivalents At the beginning

8900.3 12309.8

12026.8

21744.01

19545.53

Net Increase in Cash and Cash Equivalents

3409.50

-283.00

9717.21

-2198.

48

-1662.

83Cash and cash equivalents At the end

12,309.80

12026.80

21744.01

19545.53

17882.70

           cash balance as per balance sheet

12309.8

12026.8

21744.0

19545.5

17882.7

Difference 0.00 0.00 0.00 0.00 0.00