Name Deepankar Tiwari
Roll No 24
Class MBA HCM
Company Alembic Pharmaceuticals L
Share Price on 5th March 2021 (Rs.) 912.00
Balance Sheet of Alembic Pharmaceuticals Ltd. As at 31st March 2021
I. Assets Note No 2020
(1) Non current assets
(a) Property, Plant and Equipment 1,524.90
(b) Capital work-in-progress 1,574.10
(c) Goodwill -
(d) Other Intangible assets 26.94
(e) Intangible assets under development 272.08
(f) Financial Assets
(i) Investments 0.45
(ii) Investment accounted for using Equity Method 17.17
(g) Other non-current assets 110.66
Total non-current assets 3,526.30
(2) Current Assets
(a) Inventories 1,187.53
(b) Financial Assets
(i) Trade receivables 864.75
(ii) Cash and cash equivalents 71.84
(iii) Bank balances other than cash and cash equivalents 8.91
(iv) Others financial assets 8.65
(c) Current Tax Assets (Net) 30.98
(d) Other current assets 290.08
Total current assets 2,462.74
TOTAL ASSETS 5,989.04
II. EQUITY AND LIABILITIES Note No 2020
EQUITY
(a) Equity Share capital 37.70
(b) Other Equity 3,181.71
Equity attributable to owners of the Company 3,219.41
Non-controlling interests -28.96
Total Equity 3,190.45
LIABILITIES
(1) Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 886.99
(ii) Other financial liabilities 73.30
(b) Provisions 74.51
(c) Deferred tax liabilities (Net) 12.19
Total non-current liabilities 1,046.99
(2) Current liabilities
(a) Financial Liabilities
(i) Borrowings 860.50
(ii) Trade payables
A) Total outstanding dues of Micro and Small enterprises 7.11
B) Total outstanding dues of others 618.82
(iii) Other financial liabilities 121.92
(b) Other current liabilities 105.06
(c) Provisions 38.19
(d) Current Tax Liabilities (Net) -
Total current liabilities 1,751.60
TOTAL EQUITY AND LIABILITIES 5,989.04
armaceuticals Ltd.
21
2019
1,098.41
1,341.40
3.61
56.43
209.83
0.45
48.31
61.59
2,820.03
967.26
488.92
199.07
6.55
9.10
-
286.86
1,957.76
4,777.79
2019
37.70
2,681.12
2,718.82
-0.79
2,718.03
499.30
-
52.03
18.74
570.07
429.13
5.09
639.25
292.19
87.99
32.39
3.61
1,489.65
4,777.75
Profit and Loss Statement of Alembic Pharmaceuticals Ltd. for the year ended 31St Marc
Particulars Note No
I Revenue from Operations
II Other Income
III Total Income
IV Expenses
Cost of Materials Consumed
Purchase of Stock-in-Trade
Changes in Inventories of Finished Goods, Stock-in-Trade and Work in Progress
Employee Benefits Expense
Finance costs
Depreciation and Amortization expense
Other Expenses
Total Expense (IV)
V Profit/(loss) before exceptional items and tax (III-IV)
VI Exceptional Item
VII Profit Before Tax (V-VI)
VIII Tax Expense
(i) Current Tax
(ii) Deferred Tax
(iii) Short/Excess Tax Provision
IX Profit after Tax Before Share of Profit of Associate and Joint Ventures
X Share of Profit/(Loss) of an associate and a joint venture
XI Profit for the period before Non controlling Interest (IX+X)
XII Non- controlling Interest
XIII Profit for the period attributable to Owners of the Company
XIV Other Comprehensive Income
A. Items that will not be reclassified to Profit and Loss
(i) Re-measurements of post-employment benefit obligations
(ii) Income tax relating to Re-measurements of post-employment benefit obligations
B. Items that will be reclassified to Profit or Loss
(i) Exchange differences in translating the financial statements of a foreign operations
Total Other Comprehensive Income (A+B)
XV Total Comprehensive Income for the year (XI+XIV)
Other Comprehensive Income for the year Attributable to:
(i) Non- controlling Interest
(ii) Owners of the Company
Total Comprehensive Income for the year Attributable to:
(i) Non- controlling Interest
(ii) Owners of the Company
XVI Earnings per equity share (FV Rs 2/- per share):
Basic & Diluted (in Rupees)
ear ended 31St March 2021
2020 2019
4,605.75 3,934.68
4.94 9.38
4,610.69 3,944.06
979.05 850.04
270.93 234.93
-210.59 -92.27
906.44 746.69
27.16 18.41
157.32 115.23
1,436.89 1,321.71
3,567.20 3,194.74
1,043.47 749.32
43.65 -
999.82 749.32
204.57 178.14
-4.30 -17.29
-1.09 -4.10
800.64 592.57
0.05 -9.28
800.69 583.29
28.12 1.08
828.81 584.37
-11.42 -2.47
1.97 0.53
-9.45 -1.94
7.64 7.76
7.64 7.76
-1.82 5.83
798.87 589.12
-0.05 -0.01
-1.77 5.84
-28.17 -1.09
827.05 590.21
43.97 31.00
Ratio Analysis
Ratios Calculated Formula
Current Ratio Current Assets/Current Liabilities
Quick ratio Liquid Assets/Liquid Liabilities
Cash Ratio (Cash + Marketable Securities)/Current Liabilities
Debt Equity Ratio Debt/Equity
Interest Coverage Ratio Profit Before Interest and Income tax/Fixed Interest Charges
Stock Turnover ratio Cost Of good sold/Average Inventory
Debtors Turnover Ratio Net Credit Sales/ Average Trade Receavable
Creditors Turnover ratio Net Credit Purchase/ Average Trade Payable
Stock Holding Period Average Inventory/Cost of good sold*365
Average Collection Period Net Credit Sales/ Average Trade Receavable*365
Average Payment Period 365/Creditors Turnover Ratio
Operating Cycle Collection Period+Holding Period
Cash Cycle Operating Cycle-Days Payable Outstanding
GP Ratio Gross Profit/Net Sales
Net Profit ratio Net Profit/ Net Sales
Net Profit Before Tax Net Profit Before Tax/ Net Sales)*100
Net Profit After Tax Net Profit After Tax/ Net Sales)*100
Return on Investment (Net Profit/Total Investment)*100
Return on Total Assets (Net Profit/Total Asset)*100
Return on Capital Employed (Operating Profit/Capital Employed)*100
Return on Equity Net Income/Shareholders Funds
Earnings Per Share (EPS) Total Earning/Share Outstandings
Price to Earning Ratio Share Price/EPS
Recommendation/Analysis
2020 2020 Unit
1.41 1.41:1 times The company has a current ratio of 1.41:1, Quick ratio of 0.73:1 and ca
1 0.05:1, as against 2:1, 1.5:1 and 1:1; which indicates that company may
0.73 0.73:1 times pay its creditors/ suppliers and thus needs to manage its working capit
0.05 0.05:1 times efficiently.
0.28 0.28:1 times
The company has a debt equity ratio of 0.28:1, which indicates that for
35.81 35.81 times 2 of equity it has a debt of 0.28 as against ideal ratio of 2:1, since it is low
3.31 3.31 times the company is doing well and can raise funds from future when requir
1.70 1.70 times
1.97 1.97 times Since the debt is low and firm is earning gross profit of 77.43% which is
110.24 111 Days 3 However, the netprofit is at 17.36% (Post Tax) which is again good but
Pharmaceuticals can improve its net profit margin by controlling expen
214.55 215 Days expenses head and also the company does not find it difficult to meet
185.46 186 Days requirement
324.79 326 Days
139.33 140 Days
At 326 days, Opearting cycle of the company is very long. It holds stock
77.43 77.43 % and provides credit for almost 7 months at 215 days. It needs to shorte
22.63 22.63 % period given to the buyers and must reduce stock holding period. Cash
4
21.68 21.68 % good in comparision with opearating cycle at 140 days. As the compan
17.36 17.36 % period of 140 days from its suppliers. If the company wants to improve
ratio then it can shorten the credit period and manage working capital
28.35 28.35 % effectively and efficiently. Long Cash cycle translates to higher working
16.69 16.69 % requirements
65.24 65.24 %
21.98 21.98 %
43.97 43.97 Rs. A good net profit ratio, and higher Returns on Investment and Total as
20.74 20.74 times and 16.69% along with a whooping 65.24% returned on capital employ
about 22% of the earnings availabe for equity share holders bundelled
5 Earning ratio (PE Ratio) of 20.74 indicates that the stock is available at
the returns generated makes it an attractive buy. However, since the c
going to able to meet its short term liablity in the near future, and hen
take more debt to repay its working capital requirement. We can wait
Quarter and analyze its position and then take investing decision. If the
position improves, as major chunk of returns generated is towards oth
which can be controlled in future, if the liquidity improves then we ma
company.
The Management must borrow funds along with it they must also work
6 holding cycle and reduce its collection period for the company to impro
position
Quick ratio of 0.73:1 and cash ratio of
ndicates that company may face issue to
o manage its working capital effectively and
8:1, which indicates that for every 1 Rupee
al ratio of 2:1, since it is lower than it then
ds from future when required
ss profit of 77.43% which is extremely good.
ax) which is again good but Alembic
margin by controlling expenses under other
not find it difficult to meet its interest
y is very long. It holds stock for 111 days
215 days. It needs to shorted the credit
stock holding period. Cash cycle is a bit
at 140 days. As the company gets credit
company wants to improve its Liquidity
nd manage working capital requirement
ranslates to higher working capital
on Investment and Total assets at 28.35%
returned on capital employeed of which
ty share holders bundelled with price to
hat the stock is available at a discount and
e buy. However, since the company is not
in the near future, and hence it will have to
requirement. We can wait for another
ake investing decision. If the liquidity
s generated is towards other expenses
uidity improves then we may invest in the
with it they must also work to reduce stock
od for the company to improve its financial
The Following assumptions has been taken while computing ratios for Alembic Pharmaceuticals Ltd.
1 Other Current assets and liablities does not includes Prepaid Expences or Outstanding Expenses
2 All the information is as per P/L account and balance sheet
3 All sales are considered to be credit sales
4 All purchases are considered to be credit purchases
td.
xpenses
