OBJETIVES

TO KNOW THE SHORT TERM FINANCIAL SOUNDNESS OF THE BUSINESS TO CHECK THE PROFITABILITY OF THE BUSINESS

EMERGING MODE OF CAREER OPTION

ANALYSIS IS DONE FOR THE YEAR ENDED 31 ST MARCH,2009 & 31 ST MARCH,2008

The relevant data has been collected from the Annual Report of Ranbaxy Laboratories Ltd. which can ve downloded from the website (www.ranbaxylabs.com) of the company.The data has also been published of the company in leading newspapers.

PROFILE OF RANBAXY LABORATORIES

Ranbaxy Laboratories Ltd.

APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Depreciation Net Block Capital work- in-progress INVESTMENTS CURRENT ASSETS,LOAN & ADVANCES Inventories Sundry debtors Cash & Bank balances other Current Assets loan & Advances Less: CURRENT LIABILITIES AND PROVISIONS Current Liabilities Provisions NET CURRENT ASSETS TOTAL 13 14 8331.2 7381.42 15712.62 12588.20 62933.12 7233.3 5226.68 12459.98 12629.96 56788.51 SCHEDULES 6 Rs. Millions Rs.Millions 2009 2008 22614.80 21335.74 7919.59 6995.43 14695.21 14340.31 3274.20 3018.79 32375.51 26799.45 9760.71 8829.07 1804.50 1020.25 21414.53 6886.29 28300.82 9549.12 10137.45 711.51 780.85 21178.93 3911.01 25089.94

7 8 9 10 11 12

STAND ALONE PROFIT & LOSS A/C AS AT DECEMBER 31,2009

Rs. Millon INCOME SCHEDULE 2009 2008 Operating Income 15 43461.45 39659.23 Other Income 16 4321.77 500.36 47783.22 40159.59

Ranbaxy Laboratories Ltd.

STAND ALONE BALANCE SHEET AS AT DECEMBER 31,2009 LIABILITIES SOURCES OF FUNDS SHAREHOLDER'S FUND Share Capital Reseves & Surplus SCHEDULE 1 2 Rs. Millon 2009 1865.35 23506.81 25372.16 11.76 2008 1863.43 21627.91 23491.34 8.79

SHARE APPLICATION MONEY PENDING ALLOTMENT LOAN FUNDS Secured Loans UnSecured Loans DEFFERED TAX LIABILITY(NET) TOTAL

3 4
5

3650.68 31379.60 35030.28 2518.92

62933.12

2242.90 29543.10 31786.00 1502.38

56788.51

SOURCES OF FUNDS AS AT 31.3.2009

2518.92
11.76 SHAREHOLDER'S FUND

Rs. Millon

LOAN FUNDS 25372.16 35030.28

SHARE APPLICATION MONEY PENDING ALLOTMENT DEFFERED TAX LIABILITY(NET)

SOURCES OF FUNDS AS AT 31.3.2009

2518.92
11.76 SHAREHOLDER'S FUND

Rs. Millon

LOAN FUNDS 25372.16 35030.28

SHARE APPLICATION MONEY PENDING ALLOTMENT DEFFERED TAX LIABILITY(NET)

SOURCES OF FUNDS AS AT 31.3.2008

Rs. Millon 2008
SHAREHOLDER'S FUND

23491.34

LOAN FUNDS

56788.51
31786.00

SHARE APPLICATION MONEY PENDING ALLOTMENT DEFFERED TAX LIABILITY(NET) TOTAL

1502.38 8.79

APPLICATION OF FUNDS
(Rs. Millon ) 2009

12588.2 17969.41
FIXED ASSETS

INVESTMENTS

32375.51
NET CURRENT ASSETS

APPLICATION OF FUNDS
(Rs. Million ) 2008
FIXED ASSETS

12629.96

17359.1
INVESTMENTS

26799.45
NET CURRENT ASSETS

RATIO ANALYSIS.
LIQUIDITY RATIOS
FOR THE YEAR ENDED 31 ST MARCH,2009 CURRENT RATIO = CURRENT ASSETS CURRENT LIABILITIES = 21414.53 8331.20 = 2.57:1

RATIO ANALYSIS.
LIQUIDITY RATIOS
FOR THE YEAR ENDED 31 ST MARCH,2008 CURRENT RATIO = CURRENT ASSETS CURRENT LIABILITIES = 21178.93 7233.30 = 2.92:1

GRAPH SHOWING CURRENT RATIO FOR THE YEAR ENDING 31ST MARCH,2011 & 2012
CURRENT RATIO
3 2.9 2.8 2.7 2.6 2.5 2.4 2.3

2.92
CURRENT RATIO

2.57

DIAGRAM SHOWING CURRENT RATIO FOR THE YEAR ENDING 31ST MARCH,2011 & 2012
CURRENT RATIO
3 2.9

2.92
CURRENT RATIO

2.8

2.7

2.6

2.57

2.5

2.4

2.3

2008

2009

CONCLUSION & COMMENTS

THE CURRENT RATIO HAS GONE DOWN FROM 2.92 IN 2008 TO 2.57 IN 2009. THIS INDICATES THAT THE COMPANY LOOSING ITS ABILITYTO MEET ITS SHORT TERM LIABILITIES ON TIME.

RATIO ANALYSIS.
LIQUIDITY RATIOS
FOR THE YEAR ENDED 31 ST MARCH,2009 LIQUIDITY RATIO = QUICK ASSETS CURRENT LIABILITIES = 11653.82 8331.20 = 1.39:1

RATIO ANALYSIS.
LIQUIDITY RATIOS
FOR THE YEAR ENDED 31 ST MARCH,2008 LIQUIDITY RATIO = QUICK ASSETS CURRENT LIABILITIES = 11629.81 7233.30 = 1.60:1

GRAPH SHOWING LIQUIDITY RATIO FOR THE YEAR ENDING 31ST MARCH,2011 & 2012
LIQUIDITY RATIO
1.65

1.60
1.55 1.50 1.45 1.40 1.35 1.30 1.25

1.60

1.39

LIQUIDITY RATIO

2008

2009

BAR DIAGRAM SHOWING LIQUIDITY

RATIO FOR THE YEAR ENDING 31ST MARCH,2011 & 2012

LIQUIDITY RATIO
1.65 1.60 1.55

1.60

1.50
1.45 1.40 1.35 1.30 1.25

LIQUIDITY RATIO
1.39

CONCLUSION & COMMENTS

THE LIQUID RATIO HAS GONE DOWN FROM 1.60 IN 2008 TO 1.39 IN 2009. THIS INDICATES THAT FOR EVERY RUPEE OF CURRENT LIABILITIES , THERE IS A DECREASING AMOUNT OF LIQUID ASSETS.

THEREFORE,THE COMPANY IS LOOSING ITS ABILITY TO PAY OFF ITS CURRENT LIABILITIES MORE EASILY.

PROFITABILITY RATIOS
NET PROFIT RATIOS
FOR THE YEAR ENDED 31 ST MARCH,2009 NET PROFIT RATIO = NET PROFIT NET SALES = 6177.20 43461.45 = 14.21 %

PROFITABILITY RATIOS
NET PROFIT RATIOS
FOR THE YEAR ENDED 31 ST MARCH,2008 NET PROFIT RATIO = NET PROFIT NET SALES = 3805.43 40159.59 = 9.47 %

GRAPH SHOWING LIQUIDITY RATIO FOR THE YEAR ENDING 31ST MARCH,2011 & 2012
NET PROFIT
16
14 12 10 8 6 4 2 0

14.21

9.47

NET PROFIT

GRAPH SHOWING LIQUIDITY RATIO FOR THE YEAR ENDING 31ST MARCH,2011 & 2012
NET PROFIT
16
14 12 10 8 6 4 2 0

14.21

9.47

NET PROFIT

CONCLUSION & COMMENTS

THE NET PROFIT RATIO HAS IMPROVE FROM 9.47% IN 2008 TO 14.21% IN 2009. THIS INDICATES THAT THE NET PROFIT EARNED ON SALES BY THE COMPANY HAS INCREASED WHICH IS THEREFORE,GOOD FOR THE FINANCIAL SOUNDNESS OF THE COMPANY.

PROFITABILITY RATIOS
RETURN ON INVESTMENT RATIO:
FOR THE YEAR ENDED 31 ST MARCH,2009 R.O.I. = PROFIT BEFORE INTEREST.& TAX CAPITAL EMPLOYED = 7744.06 + 9865.63 14965.21+3274.2+32375.51+12588.20 = 17609.69 = 27.98 % 62933.12

PROFITABILITY RATIOS
RETURN ON INVESTMENT RATIO:
FOR THE YEAR ENDED 31 ST MARCH,2008 R.O.I. = PROFIT BEFORE INTEREST.& TAX CAPITAL EMPLOYED = 4429.76 + 6081.70 14340.31+3018.79+26799.45+12629.96 = 10511.46 = 18.5 % 56788.51

GRAPH SHOWING ROI RATIO ST FOR THE YEAR ENDING 31 MARCH,2011 & 2012
ROI
30 25 20 15 10 5 0 18.5

27.98

BAR DIAGRAM SHOWING ROI RATIO FOR THE YEAR ENDING 31ST MARCH,2011 & 2012
30 25 20 15 10 5 0

RETURN ON INVESTMENT
27.98

18.5 ROI

CONCLUSION & COMMENTS

PROFITABILITY RATIOS
RETURN ON SHARE HOLDER FUND:
FOR THE YEAR ENDED 31 ST MARCH,2009 R.S.F. = (NET PROFIT AFTER TAX)* 100 SHARE HOLDER FUND = (6177.20) * 100 (25372.16) = 24.34 %

PROFITABILITY RATIOS
RETURN ON SHARE HOLDER FUND:
FOR THE YEAR ENDED 31 ST MARCH,2008 R.S.F. = (NET PROFIT AFTER TAX)* 100 SHARE HOLDER FUND = (3805.43) * 100 (23491.34) = 16.1 %

GRAPH SHOWING RSF RATIO ST FOR THE YEAR ENDING 31 MARCH,2011& 2012
RETURN ON SHAREHOLDER FUND
30 25

24.34

20

16.1
15 10 5 0

RSF

GRAPH SHOWING RSF RATIO ST FOR THE YEAR ENDING 31 MARCH,2011 & 2012
RETURN ON SHAREHOLDER FUND
30

25
20 15 10 5 0

24.34

16.1

RSF

CONCLUSION & COMMENTS

THIS INDICATES THAT THE COMPANY IS MAKING MORE EFFICIENT USE OF ITS SHAREHOLDERS FUND

THANK YOU.

ANY QUESTIION?
The End