Cadilla healthcare

FY18-19

 There are 2 audit observations with respect to valuation of the investments and loans to the
subsidiaries and tax assets. Please review. (on Pg. 91)
 Pg. 97. Audit observation w.r.t. ownership of a parcel of land by the company.
 Disputed statutory dues not deposited with the relevant authorities of Pg 98
 Use of critical judgement and estimation explained on Pg 105-106
 The company has invested Rs. 569.9 crore on plant and machinery and 64.4 cr on
development of buildings. Can inquire about the nature of the additions.
 Depreciation and amortization cost are stable
 No additions to the brands and trademarks indicating no R&D cost being capitalized during
the year.
 The company has invested Rs.1175 crore by way of purchasing 8483754 shares in the Zydus
wellness Limited, a subsidiary of the company during the FY18-19
 Further, the company has invested Rs.155.60 crore in its subsidiary company Windlas
Healthcare Private Limited
 Out of the loans of Rs.1301 crore outstanding with the related parties, Rs.695 crore have
been repaid during the year
 Significant increase in the trade receivables from Rs.1260 crore to 2092 crore during FY18-19
in response to about __ % growth in sales
 Promoter led company. The Zydus family trust haolds 74.78% of the total shares. No
additions to the share capital except plough back of the retained earnings
 The company shall completely repay Rs.46.1 crore secured foreign ECB during the current
year.
 Further the company has outstanding unsecured ECBs of Rs.1616.8 crore obtained for the
capital expenditure
 The company enjoys unsecured packing credit in foreign currency from the banks for its
Working capital needs. The current outstanding is Rs. 1210.7 crore.
 The above highlighted indebtness highlights that the company is exposed to significant
foreign currency risk.
 Further, the company has significant exposure to the performance of its subsidiaries the
company has provided corporate guarantees for the loans availed by the subsidiaries
amounting to Rs.3165 crore.
 The company has declared dividends of Rs.3.50 per equity shares of Rs.1 each.
 Get ratio analysis from CAPITALINE.