Professional Documents
Culture Documents
Financial Report
Financial Report
INDEX
SL. NO.
CONTENT
PAGE NO.
INTRODUCTION
2-3
4-8
SOURCES OF
FINANCE
ANALYSIS OF
SOUSES
BALANCE SHEET
CAPITAL STRUCTURE
11
COST OF CAPITAL
12-14
CAPITAL BUDGETING
DECISION
REFERENCES
15-16
9
10
16
(A) Introduction
Vision:
Dr. Datson strives to be the premier provider to the pharmaceutical industries for
development and commercialization of new medical therapies in anti cancer and anti malarial
worldwide.
Mission:
To combine the strength of our expertise,experience,and innovation to advance in the
worldwide success of the pharmaceutical industries in preventing and curing disease .
Aanjaneya Lifecare Ltd is a vertically integrated pharmaceutical company with
manufacturing and marketing capabilities in API (Active Pharmaceutical Ingredients) with
focus on anti-malarial, and Finished Dosage Forms (FDF) catering to various therapeutic
segments. Aanjaneya Lifecare Ltd was incorporated on January 3, 2006 as a private limited
company. The company is presently manufacturing second generation anti malarial which are
Quinine and its salts. The company has launched brands such as Anjtil (diareahhea),
Rankorex (cough syrup), Doktor Qure (pain management), Prosils (herbal lozenges), EsyHil
(crack heel cream), Aanmycin (skin - anti fungal) under the branded generic segment in the
domestic market. They have also launched these brands in the semi regulated markets like
Kenya, Tanzania, Haiti, Egypt, Domnican Republic and Jamaica.
In the year 2008, the company increased the manufacturing capacity from 200,000 kg per
annum to 360,000 kg per annum. In the year 2009, the company further increased the
manufacturing capacity from 360,000 kg per annum to 450,000 kg per annum. In the year
2011, the company was recognized as an export house by the Zonal Joint Director General of
Foreign Trade. They launched products like Aanrich, Actipros (asthma), Ulsacare (mouth
ulcers), Apticatch (appetite enhancer in kids), Anjeniya Curcumacare (prostate cancer) and
Nicco-nil (smoking de-addiction) under the branded generic segment in the domestic market.
The company plans to establish their presence in the international markets including Russia,
Middle East, Central and Latin America, South East Asia, South Africa, Cyprus and Greece.
Members
NAME
Mr. Mahesh Vaidya
Mr. Minhaj Khan
Dr. Rajendra Kumar
Mr. Pravat K Goyal
Mr.Shashikant B. Shinde
Mr. Giridhar G. Pulleti
Designation
Chairman
Nonexecutive and Independent Dir.
Vice Chairman & Managing Director
Whole Time Director
Whole Time Director
Nonexecutive Director
PRODUCT PROFILE
PRODUCT NAMES
THERAPEUTIC CATAGORY
1.ARTESUNATE
ANTI MALARIALS
2. ARTE METHER
ANTI MALARIALS
3. PERINOPRIL ERBUMIN
ACE INHIBITOR
4. TADALAFILE`
ERECTILE DYSFUTION
5.RAFOXANIDE
6.DOCETAXEL ANHYDROUS
ANTI CANCER
ANTI CANCER
8.CAPICITABINE
ANTI CANCER
9.GAFITINIB
ANTI CANCER
10. METFORMIN
DIABETIC
YEARS
SOURCES
MAR 2014
MAR 2013
MAR 2012
MAR 2011
MAR 2010
SHARE CAPITAL
31.66
13.89
13.89
7.58
5.78
RESERVES &
SURPLUS
376.21
295.58
335.91
126.81
44.00
SECURED LOAN
215.99
179.76
193.95
123.35
49.59
UNSECURED LOAN
278.73
370.45
104.79
15.60
10.10
LOAN IN ADVANCE
130.14
18.88
16.84
4.30
3.49
Mar-14
31.66
376.21
215.99
278.73
130.14
SHARE CAPITAL
RESERVES AND SURPLUS
SECURED LOAN
UNSECURED LOAN
LOAN IN ADVANCE
TOTAL CAPITAL FROM
SOURSES(YR)
1032.73
Mar-13
13.89
295.58
179.76
370.45
18.18
Mar-12
13.89
335.91
193.95
104.79
16.84
Mar-11
7.58
126.81
123.35
15.6
4.3
Mar-10
5.78
44
49.59
10.1
3.49
877.86
665.38
277.64
112.96
Mar-13
1.58%
33.67%
20.47%
42.14%
2.07%
Mar-12
2.08%
50.48%
29.14%
15.74%
2.53%
Mar-11
2.73%
45.67%
44.42%
5.60%
1.54%
Mar-10
5.11%
38.95%
43.90%
8.94%
3.08%
PARCENTAGE (%)CHANGES
YEARLY
SHARE CAPITAL
REERVES AND SURPLUS
SECURED LOAN
UNSECURED LOAN
LOAN IN ADVANCED
Mar-14
3.06%
36.42%
20.91%
26.98%
12.60%
60.00%
50.00%
40.00%
SHARE CAPITAL
RESERVE AND SURPLUS
30.00%
SECURED LOAN
UNSECURED LOAN
20.00%
LOAN IN ADVANCE
10.00%
0.00%
41699
41334
40969
40603
40238
SHARE CAPITAL
41699
41334
40969
35%
40603
40238
21%
11%
19% 14%
41334
40969
19% 18%
22%
16%
25%
40603
40238
SECURED LOAN
41699
41334
40969
40603
40238
13%
28%
13%
28%
18%
UNSECURED LOAN
41699
41334
40969
6%
16%
9%
27%
42%
40603
40238
LOAN IN ADVANCE
41699
41334
40969
40603
14%
7%
12%
58%
9%
PEER COMPANIES
40238
6.Acyclovin
2. Acitretin
7.Adapalane
3. Acetaminophin
8.Albendazole
4.Alendronate
9.Albuterol
5.Alfuzosin
10.Bisacodyle
YEARS
SOURCES
MAR 2014
MAR 2013
MAR 2012
MAR 2011
MAR 2010
SHARE CAPITAL
160.58
160.58
160.58
160.58
160.58
RESERVES &
SURPLUS
9922.09
8699.97
7380.73
6443.40
5744.54
SECURED LOAN
0.00
9.49
10.00
2.95
0.41
UNSECURED LOAN
877.34
956.32
2.292
438.44
4.66
1150.69
1029.10
1213.66
1292.28
2357.29
LOAN IN
ADVANCE
9
In Cr......
SHARE CAPITAL
RESERVED AND SURPLACE
SECURED LOAN
UNSECURED LOAN
LOAN AND ADVANCE
Mar14
160.5
8
9922.
09
0
877.3
4
1150.
69
12110
.7
Mar-13
Mar-12
160.58
160.58
8699.9
7
9.49
956.32
7380.7
3
10
2.292
1029.1
10855.
46
1213.6
6
8767.2
62
Mar14
1.32%
81.92
%
0
7.24%
9.50%
Mar-13
Mar-12
1.47%
80.14
1.83%
84.18
%
0.11%
0.02%
13.84
%
Mar11
160.5
8
6743.
4
2.95
438.4
4
1292.
28
8637.
65
Mar10
160.5
8
5744.
54
0.41
4.66
Mar11
1.85%
78.06
%
0.03%
5.42%
14.96
%
Mar10
1.94%
69.48
%
0.04%
0.05%
28.51
%
2357.
29
8267.
48
change
SHARE CAPITAL
RESERVED AND SURPLUS
SECURED LOAN
UNSECURED LOAN
LOAN AND ADVANCE
0.08%
8.80%
9.48%
1.Share capital
The number of share capital of the company
increase in 2014 by 3.06% as compare to the
other previous year.In the previous two year
it must be constant whether it is issued
subscribed and fully paid and subscribed but
not fully paid.Shares in respect of the each
class is held by subsidiary company
2. Reserve and Surplus
Reserve and surplus of the company increase
in 2011-2012 by 50.48% from 45.67% and
further increased by 36.42 % from 33.67%
.this shows that the company having more
reserve which can be used by further issuing
Cipla
1.Share capital
The number of share capital of the company
same in all the year 160.58 in crore but a few
difference in percentage. This shows that the
number of share capital of the company
same in the previous year whether it is
subscribed or issued.
2.Reserve and Surplus
Reserve and surplus of the company
continuously increasing from previous year
like 81 % ,80.14% ,81.4%and This shows
that company going to proper year to year.
The company having good solvency position.
10
3.Secured Loan
This company having very less secured
loan .In all the previous year it never exceed
0.11% that is very good for the company.
Mar 2014
Mar 2013
Mar 2012
Mar 2011
Mar 2010
Share Capital
31.66
13.89
13.89
7.58
5.78
376.21
295.58
335.91
126.81
44.00
407.87
309.47
349.80
134.39
49.78
Secured Loans
215.99
179.76
193.95
123.35
49.59
SOURCES OF FUNDS :
11
Unsecured Loans
278.73
370.45
104.79
15.60
10.10
Total Debt
494.72
550.21
298.74
138.95
59.69
Total Liabilities
902.59
859.68
648.54
273.34
109.47
Gross Block
248.82
248.55
233.72
74.56
48.55
60.53
40.09
19.87
4.21
1.62
Net Block
188.29
208.46
213.85
70.35
46.93
179.01
164.09
144.24
46.68
4.20
Investments
212.78
2.40
0.78
0.05
0.05
Inventories
185.53
166.49
137.52
82.37
36.04
Sundry Debtors
365.91
272.37
200.58
90.46
43.30
1.22
212.33
4.15
0.67
0.75
130.14
18.88
16.84
4.30
3.49
Current Liabilities
355.87
179.79
56.78
1.09
18.78
Provisions
4.43
5.55
12.64
20.45
6.51
322.50
484.73
289.67
156.26
58.29
APPLICATION OF FUNDS :
Current Assets,
Advances
Loans
and
12
0.00
0.00
0.00
0.00
Total Assets
902.58
859.68
648.54
273.34
109.47
Contingent Liabilities
0.82
0.00
0.00
0.00
0.00
(Rs. cr)
Shares (nos)
2013
2014
Equity Share
50
31.66
2012
2013
Equity Share
50
2011
2012
Equity Share
2010
2011
2009
2010
Issued Capital
Capital
31655000
Face
Value
10
13.89
13887000
10
13.89
30
13.89
13887151
10
13.89
Equity Share
20
7.58
7576667
10
7.58
Equity Share
20
5.78
5776667
10
5.78
407.87
2013
309.47
2012
349.8
2011
134.39
31.66
13
TOTAL DEDT
REVENUE
FROM
OPERATION
SERVICE OR
EXERCISE TAX
OTHER LEVIES
EBIT (NET)
494.72
421.05
550.21
520.76
298.74
138.95
479.96
220.26
427.46
477.79
479.27
220.26
VALUE
OF
FIRM =E+D
902.59
859.68
648.54
273.34
=479.27/648.54* 100
=73.89%
=477.79/589.68 *100
=55.55%
=427/902.59*100
=47.30%
The total debt and equity means value of the firm increased from the previous year in
902.59 crore .It means firm obtaining equity share capital in two ways firstly it is used
14
for retention of earning and secondly issue of equity share to the public.Issue of
additional equity share to the public involve flotation cost .
For calculating cost of equity share there is no common basis for computation.e.gIn cost of debt interest charge is the base.
Preference dividend is based on the cost of preference share.
In 2014 the cost of capital increased as compare to the previous year by 407.87 crore.
There is no mention the rate of the return. But the minimum rate of return that a firm
must earn on equity finance is a part of investment project in order to leave
unchanged market price of share.
Company revenue expenses also increased.
Cost of capital in 2011 was the highest 80.58% by computation of overall cost.
The cost of the equity share 2014 was highest by 407.87% as compare to all the
previous year.
Cost of Capital
YEAR
2011
COST OF CAPITAL
2013
2012
80.58%1
73.89%2
2014
81.02%3
3
47.30%4
4
PEER COMPANY
2013
2012
2011
15
TOTAL
EQUITY
TOTAL DEDT
REVENUE
FROM
OPERATION
SERVICE OR
EXERCISE
TAX
OTHER
LEVIES
EBIT (NET)
VALUEOF
FIRM=E+D
10091.64
981.39
9174.96
8869.52
1043.29
8134.56
7550.28
72.09
6931.92
6612.95
462.39
6193.82
99.12
92.16
97.23
67.64
9075.84
8042.40
6834.69
6126.18
11073.03
9912.81
7622.37
7075.34
COST OF CAPITAL OF THE FIRM FOR THE YEAR 2011 = EBIT/V = 86.58%
COST OF CAPITAL OF THE FIRM FOR THE YEAR 2012=EBIT/V = 89.66%
COST OF CAPITAL OF THE FIRM FOR THE YEAR 2013 = EBIT/V = 81.13%
COST OF CAPITAL OF THE FIRM FOR THE YEAR 2014= EBIT/V = 81.96%
Total debt of the company increase in 2013 but in 2014 its decreasing that is good for the
company.
The company goes into profit initially they issued new shares and the debts would be
decreased for this reason revenue from the operations would be increased.
Earnings before interest and tax would be increased in 2014 by 9075.84 cr. As compared
to the other previous year.
Cost of capital of the company in 2012 was highest as compared to the other year by
89.66%.
16
In cr.
2011
Investment
455.38
Profit
36.01
From money control
2012
1036.89
41.03
2013
1780.57
0.55
2014
2117.92
0.67
Aveg. Investment=1347.69
Aveg. Profit =19.56
ARR=19.56/1347.69 * 100
=1.45%
Capital budgeting decision mean the firm decision to invest its current fund most efficiently
in the long term assets in anticipation of an expected flow of benefits over a series of year.
It include the process of identifying ,analysis and selecting investment project whose
return are expected to extend beyond one year.
Aanjaneya life care need to be expansion ,acquisition with other company .It also
involve high degree of risk and long time period between initial investment and
anticipated return.
High degree of risk because it totally depend upon the future year cash inflow and
other the uncertain of future and more risk.
(H) Recommendations
Company can change its capital structure or proportions of components that affects its
weighted average cost of capital.For instance- when a firm decides to use more debts
an less equity which lead to reduction of WACC at the same time increasing
proportion of debt in capital structure increase the risk of both debt and equity holder.
Equity capital can be raised by issue of new equity share or through retained earnings.
Sometime company may prefer to raise new equity share by retention of earning but it
involve flotation cost. Retained earning s is less costly than issue of new equity.
Investors expect more return so it affects cost of capital.
Different type of investment policies should be required. It is not compulsory that all
firms have similar type of risk.
Earnings before interest and tax is important it affect overall cost of capital for the
firm but tax rate are beyond the control .
Interest rate is also important in cost of capital. If interest rate increase automatically
cost of debt also increase .On the other hand ,if interest rates are low then the cost of
debt is less.The reduced the cost of debt reduce WACC and this will encourage
additional investment.
17
Market risk is out of control risk and the company have no control on this.
(I )Reference
http://www.moneycontrol.com/financials/drdatsonlabs/profit-lossVI/AL02#AL02
http://www.hdfcsec.com/
http://capitaline.com/SiteFrame.aspx?id=1
http://www.bseindia.com/