Alliance

University 2023

ANNUAL
REPORT
ACCOUNTING FOR MANAGERIAL DECISIONS

Vekariya Aksharkumar Dineshbhai - Compilation and Information on shares of the Company

Arib Imam - Financial Statement Analysis
Vrinda Pareek - Ratio Analysis
Duggireddy Gayathri Reddy - Director's Report & MDA
Bhamra Amrit Kaur Vijay Singh - Analysis of Cash Flow Statement
 Alliance
University ANNUAL REPORT 02

CONTENTS
01 02 03 04
DIRECTOR’S MANAGEMENT FINANCIAL RATIO
REPORT DISCUSSION AND STATEMENT ANALYSIS
ANALYSIS ANALYSIS

05 06
ANALYSIS OF INFORMATION
CASH FLOW ON SHARES OF
STATEMENT THE COMPANY
 Financial results
Key developments
Capacity additions
Financial strategies
Future plans and goals
Financial conditions
 Financial Statement Analysis
Eris Lifesciences Ltd​
Financial Position​

Total Equity​ Total Liabilities​

Total Assets​
​ ​
​
​ ​
March 2021: ₹17,548.04 million​
March 2021: ₹15,754.67 million​ March 2021: ₹1,793.37 million​
March 2022: ₹21,504.16 million​
March 2022: ₹19,185.56 million​ March 2022: ₹2,318.60 million​
March 2023: ₹27,836.58 million​
March 2023: ₹22,218.84 million​ March 2023: ₹6,332.42 million​

There is a continuous increase in

The equity has also been increasing
total assets, indicating growth and
over the years, reflecting the
expansion of the company.​
accumulation of earnings.​
The company's liabilities have been
on the rise, likely due to increased
investments in non-current assets.​
 Eris Lifesciences Ltd​
Financial Performance​

Profit Before Tax​

Revenue from Operations​
​
​
March 2021: ₹3,888.94 million​
March 2021: ₹11,088.34 million​
March 2022: ₹4,585.38 million​
March 2022: ₹12,157.30 million​
March 2023: ₹4,369.11 million​
March 2023: ₹13,307.25 million​
​
​
There was a slight decrease in profit before
The company's revenue from operations has
tax in 2023 compared to 2022, but it's
steadily increased, indicating growing sales.​
relatively stable.​
 Financial Statement Analysis
FDC Ltd​

Equity and Liabilities​

​
Shareholder's Funds: The total shareholder's funds Assets ​
increased from ₹1,956.79 million in 2022 to ₹1,982.05 ​
million in 2023, with a 1.29% growth.​ Non-Current Assets: Non-current assets increased from
​ ₹1,270.02 million to ₹1,274.47 million, with a marginal
Non-Current Liabilities: Non-current liabilities increased 0.35% growth.​
from ₹41.69 million to ₹49.98 million, with an 19.88%
increase. Notably, "Long Term Provisions" saw a significant Current Assets: Current assets increased from
increase.​ ₹1,000.19 million to ₹1,068.47 million, showing a 6.83%
​ increase.​
Current Liabilities: Current liabilities increased from
₹272.16 million to ₹311.56 million, with a 14.48% increase.​
 FDC Ltd​
Income​
Revenue From Operations: It increased from ₹1,523.34 million in 2022 to ₹1,783.75 million in 2023, indicating
a 17.05% growth.​
Other Income: Other income decreased from ₹76.09 million to ₹49.86 million, showing a decrease of 34.64%.​
Total Revenue: Total revenue increased from ₹1,604.01 million to ₹1,833.61 million, representing a growth of
14.32%.​

Expenses​
Cost of Materials Consumed: It increased from ₹454.24 million to ₹585.92 million, with a growth of 29.02%.​
Employee Benefit Expenses: Employee benefit expenses increased from ₹343.33 million to ₹390.90 million,
showing a 13.85% increase.​
Total Expenses: Total expenses increased from ₹1,314.62 million to ₹1,575.80 million, representing a 19.86%
growth.​

Profit After Tax​

Profit after tax decreased from ₹216.16 million in 2022 to ₹193.83 million in 2023, showing a decline of
10.40%.​
Ratio Analysis

ERIS Lifesciences Ltd.

(2020-21, 2021-22 & 2022-23)

 LIQUIDITY RATIOS
Current ratio: Very high; but also implies that by holding so many current assets the company
might be missing out on potential investment opportunities, also might be low in capital
utilisation for productive purposes.

Decreasing each year from 2021 to 2023 means that the company is gradually investing with a
long term in mind,

Maintaining the current ratio well above

The ratio of all the 3 years are well within a good range, neither too high nor too low.

The cash ratio has gone down from 0.15 in 2021 to 0.8 in 0.08 in 2023- shows low proportion of
cash on hand to cover its short-term liabilities.
 SOLVENCY RATIOS

Improvement in terms of Debt Equity Ratio and Debt Asset Ratio in 2023 compared to 2022.
Decrease in both indicate a lower reliance on debt.

Interest Coverage Ratio: Declined over the 3 years, suggests decreased ability to cover interest
expenses with earnings.

Proprietary Ratio also decreased-higher reliance on external financing sources.

Overall, while the company's solvency position is relatively stable.

 TURNOVER RATIOS

Inventory Turnover Ratio has decreased slightly from 1.93 in 2021 to 1.70 in 2022 and then improved to 1.99
in 2023.

Increasing trends can be a positive sign of efficient inventory management.

Debtors Turnover Ratio increased from 11.38 in 2021 to 15.86 in 2022 and further to 17.59 in 2023, indicated
that company is collecting payments from debtors more efficiently and quickly.

Asset Turnover Ratio increased from 0.68 in 2021 to 0.73 in 2022 and continued to improve to 0.76 in 2023,
suggests that company is generating more sales relative to its total assets, indicating better asset utilisation.
 PROFITABILITY RATIOS
Gross Profit Margin was 69.31% in 2021, improved to 72.00% in 2022, but then declined to 64.57% in 2023.
Decline in 2023 may indicate increased production or acquisition costs.
Net Profit Margin was 27.26% in 2021, decreased to 18.04% in 2022, and further to 14.06% in 2023.
Declining trend: Suggests profitability has decreased over the years, raises concerns about cost management
or other factors affecting profitability.
ROE was 17.38% in 2021, decreased to 11.06% in 2022, and further to 9.79% in 2023.
Declining trend suggests less efficient in generating profits from shareholders' equity.
ROCE was 20.37% in 2021, decreased to 13.09% in 2022, and further to 11.38% in 2023.
Declining trend suggests that efficiency in utilising its capital to generate profits has decreased.
This declining profitability and return ratios may raise concerns about the company's ability to maintain and
grow its profits.
Ratio Analysis
for

FDC Ltd.

(2020-21, 2021-22 & 2022-23)

 LIQUIDITY RATIOS
In 2021, current ratio of 2.93, indicated more than enough current assets to cover its short-term liabilities.
Increased to 3.49 in 2022, further improving liquidity.
2023, declined significantly to 1.95, indicating potential liquidity issue.
The quick ratio, followed a similar trend as the current ratios.
2021, it was 2.48, showing strong short-term liquidity, improved to 2.98 in 2022, dropped to 1.72 in 2023.
The cash ratio also exhibited a similar trend.
In 2021, it was 0.23, indicating relatively strong cash position. Increased to 0.28 in 2022 but declined to 0.17 in
2023, suggesting decrease in the cash reserves.
Strong liquidity in 2021 and 2022, with current and quick ratios well above 1.0.
Significant decline in 2023, concerning for the company's ability to meet its short-term financial obligations.
 SOLVENCY RATIOS
In 2021, very low Debt Equity Ratio of 0.0037, indicating minimal reliance on debt, increased to 0.0192 in
2022 and to 0.1112 in 2023.
Increase suggests that the company has taken on more debt compared to its equity, increasing financial risk.
Debt Asset Ratio, in 2021, it was 0.0033, very low level of asset financing through debt. Increased to 0.0171 in
2022 and further to 0.0887 in 2023, implying a higher reliance on debt to finance its assets.
A very high Interest Coverage Ratio of 220.17 in 2021, indicating strong coverage of interest expenses.
In 2022, declined to 107.55, and drastically dropped further to 16.46 in 2023.
Declining trend suggests that the company may be facing challenges in covering its interest expenses.
2023, hit with a major challenge as it dropped down many times in span of a year.
High Proprietary Ratio of 0.8978, indicating a strong equity position. It decreased to 0.8920 in 2022 and
further to 0.7982 in 2023.
 TURNOVER RATIOS
Inventory Turnover Ratio decreased slightly from 3.67 in 2021 to 3.19 in 2022 •Significant improvements to
5.03 in 2023 suggests selling and replacing of inventory more frequently.
Debtors Turnover Ratio increased from 9.52 in 2021 to 10.72 in 2022, and then decreased slightly to 9.19 in
2023.
•Efficiently collecting payments from debtors over the years, with a minor dip in 2023.
Asset Turnover Ratio decreased from 0.69 in 2021 to 0.63 in 2022, and further to 0.61 in 2023.
Decreasing trend- ability to generate sales from its total assets became less efficient.
Overall, company has demonstrated strengths in inventory and debtors turnover, but may need to focus on
optimising its asset utilisation.
 PROFITABILITY RATIOS
In 2021, strong Gross Profit Margin of 80.26%. Sightly improved in 2022 to 82.29% then decreased to 77.84%
in 2023. Overall, maintained a healthy margin.
Relatively high Net Profit Margin of 32.32% in 2021; stable at 32.20% in 2022; dropped to 23.85% in 2023.
Declining trend suggests a decrease in overall profitability.
Good ROE of 22.54% in 2021, •Decreased to 21.16% in 2022 and further to 17.20% in 2023. The •Indicates
decreasing efficiency in generating profits from shareholders' equity.
Strong ROCE of 23.33% in 2021.
Decreased to 21.42% in 2022 and further to 15.99% in 2023.
Declining efficiency of ROCE in utilising its capital to generate profits.
The company's Gross Profit Margin remained healthy, but significant decrease in Net Profit Margin, ROE, and
ROCE in 2023 is a point of concern.
Company needs to manage costs, improve profitability, and enhance its operational efficiency to maintain
and enhance its financial health.
ANALYSIS OF CASH FLOW STATEMENT
 INTERPRETATION OF CASH FLOWS OF ERIS LIFESCIENCES Ltd.

CASH FLOW STATEMENT LINK

Working Capital :
In the base year (2020-21) the working capital position is positive but it is decreasing from 2021 and 2023. This
means that the solvency position of the company is very poor.
Operating Activities

Net Cash from Operating Activities 291.74 (22-23) 378.26 (21-22) 375.36 (20-21)

It is clear that the net cash from operating activities has increased from 2020-21 to 2021-22, but decreased in
2022-23. This could mean that the company's operating activities generated more cash in 2021-22 than in 2020-
21, but generated less cash in 2022-23 than in 2021-22. However, it is important to note that the net cash from
operating activities is just one aspect of a company's financial health, and other factors such as investing and
financing activities should also be considered when evaluating a company's overall financial performance.
Overall, the decrease in the company's operating activities cash flow is a sign that its financial performance is
deteriorating. It is important for the company to identify the root cause of this decrease and take steps to address
it. Otherwise, the company's financial situation could worsen in the future.
Investing Activities

Net Cash from Investing Activities -974.61 (22-23) -319.61 (21-22) -323.36 (20-21)

Since the amount is showing as negative means that company is investing more cash to invest in assets. This
can be a sign of a few different things:
The company is investing in new assets, such as property, plant, and equipment. This is a good thing if the
company is expecting to grow in the future.
The company is selling off assets that are no longer profitable or that it no longer needs. This can be a good thing
if the company is streamlining its operations and focusing on its core business.
This could be due to the company's strategy to expand its operations or acquire new assets, which may lead to
future growth and profitability. However, it is important to analyse the company's financial statements in more
detail to understand the reasons behind the negative net cash flow from investing activities.
Financing Activities:

Net Cash used in financing Activities 688.03 (22-23) -44.7 (21-22) -82.4 (20-21)

In the case of the company you described, the cash flow from financing activities has been negative for the first
two years (-82.4 and -44.7, respectively), but has become positive in the third year (688.03). This means that the
company has paid out more cash to its owners and creditors than it has received in the first two years, but has
received more cash than it has paid out in the third year.
In 2022-23 the amount is positive it means that the company has received more cash from its owners and creditors
than it has paid out. This is typically a good sign, as it indicates that the company is able to attract capital and is in
a healthy financial position.

2022-23 2021-22 2020-21

Cash and Cash Equivalents at Beginning of the year 50.87 36.92 67.31
Cash and Cash Equivalents at End of the year 56.02 50.87 36.92

In 2020-21 the cash flows shows negative figure but in 2021-22 there is a rapid growth in cashflow but then
again in 2022-23 there is no much of increase in the cashflow, Hence the overall solvency of the company is
not satisfactory.
 INTERPRETATION OF CASH FLOWS OF FDC Ltd.

CASH FLOW STATEMENT LINK

Working Capital:
The fact that the company's working capital has been negative for three consecutive years is a cause for concern. It
suggests that the company is struggling to generate enough cash from its operating activities to cover its expenses.
Operating Activitites
Net Cash from Operating Activities 154.91 (22-23) 161.65 (21-22) 207.08 (20-21)
The company's operating activity cash flow has decreased by 21.9% from 2020-21 to 202122, and then by another 4.7%
from 2021-22 to 2022-23. This means that the company is generating less cash from its core business operations over
time.
There are a few possible explanations for this decrease. One possibility is that the company's revenue has been stagnant
or declining. Another possibility is that the company's expenses have been increasing faster than its revenue. It is also
possible that the company has been investing in new growth initiatives that have not yet started to generate returns.

Investing Activities:

Net Cash Used in Investing Activities 11.2 (22-23) -144.52 (21-22) -77.18 (20-21)
The company has been investing more cash than it has received from its investments in the past two years (2020-21 & 2021-
22) However, in 2022-23, the company has started to generate a positive cash flow from investing activities.
This could mean a few things. One possibility is that the company has been investing in new growth initiatives that have
finally started to generate returns. Another possibility is that the company has sold some of its investments at a gain.
Financing Activities

Net Cash Used in Financing Activities -179.95 (22-23) -9.84 (21-22) -129.35 (20-21)

A negative cash flow from financing activities in a cash flow statement indicates that the company has paid out
more cash to its owners and creditors than it has received.
A negative number in the financing activities section of the cash flow statement indicates that the company
has paid out more cash than it has received from financing activities Therefore, the company has paid out
more cash in 2022-23 and 2020-21 than it has received from financing activities. However, in 2021-2022, the
company has received more cash from financing activities than it has paid out.

2022-23 2021-22 2020-21

Cash and Cash Equivalents at Beginning of the year 37.73 30.43 29.88
Cash and Cash Equivalents at End of the year 23.89 37.73 30.43

In 2020-21 there is slight increase in the cash flow, again it increases in 2021-22 but then in 2022-23
company’s solvency position is deteriorating.
This is a negative sign, as it indicates that the company is using more cash than it is generating.
 Alliance
University ANNUAL REPORT 1

INFORMATION ON SHARES
OF THE COMPANY
By AKSHAR VEKARIYA
Alliance
University Eris life sciences ltd. 0

PRICE HISTORY OF ERIS LIFE SCIENCES LTD.

 Alliance
University Eris life sciences ltd. 0

FINANCIAL YEAR
2021-2022
Experienced a bull run The stock then had
for six months, reaching a short bull run in
an all-time high of ₹863 the second half of
in October. the year, hitting a
END OF FINANCIAL
YEAR 2020-2021
high of ₹745 by
Entered in bearish October 2022.
Price increased to END OF
phase until June FINANCIAL YEAR
₹634, marking a 75%
2022, touching a 2022-2023
growth since the
low of ₹600.
beginning of the Faced another
financial year. bearish period,
52 Week High - ₹640 closing at ₹551,
APRIL 2020
52 week Low - ₹365 the lowest level
Stock was during this
trading at timeframe.
₹360-370 levels
during the month
of April
 Alliance
University Eris life sciences ltd. 0

Promoters FIIs DIIs Retail Others

125

100

23.8% 23.5% 22.3

75
9.7% 10.5% 10.0%

12.4% 13.3% 14.9%

50

25

54.1% 52.7% 52.9%

0
March,2021 March,2022 March,2023

SHAREHOLDING PATTERN OF THE COMPANY

 Alliance
University Eris life sciences ltd. 0
Shareholding Pattern of the company

During the period of 2020-2023, Eris Lifesciences Ltd.'s shareholding

pattern indicates the following trends:

1. Promoter Group: Reduced shareholding by 1.2%

2. Foreign Institutional Investors: Increased shareholding by

2.5%, indicating positive outlook and confidence in the company's
future performance.

3. Domestic Institutional Investors: Increased shareholding by

0.3%, indicating confidence in the Eris life sciences.

4. Retail Investors: Decreased shareholding by 1.5%, possibly due

to factors like risk aversion or lack of awareness about the company,
reflecting reduced confidence among individual investors.

In summary, the data illustrates the promoter group and foreign institutional investors' confidence in Eris Lifesciences Ltd.'s future,
while domestic institutional investors and retail investors have shown a decline in their confidence during this period.
 Alliance
University Eris life sciences ltd. 0

PLEDGING OF SHARES
BY PROMOTERS SPLIT OF SHARES BONUS SHARES

Eris Lifesciences Ltd.
witnessed no pledging of
shares by its promoters
between April 1, 2020, and
March 31, 2023, indicating a
stable and confident stance,
underscoring their strong faith
in the company's
performance and financial
stability.
Eris Life Sciences td. did not
undergo any share splits
between April 2020 and
March 2023, maintaining a
consistent stock structure
throughout this period.
Eris Lifesciences Ltd. did
not issue any bonus shares
or undertake any bonus
share issuance initiatives
between April 2020 and
March 2023.
Alliance
University FDC LTD. 0

PRICE HISTORY OF FDC LTD.

 Alliance
University FDC LTD. 0
FIRST QUARTER
OF 2021-2022

Witnessed a bull
run from April to
mid-July, reaching The stock reversed
an all-time high of its trend, finding
₹404 in June support around
₹220-230 and
Positive trend until END OF FINANCIAL reaching a high of
September 2020, YEAR 2021-2022 ₹318 in October
END OF FINANCIAL
reaching a 52-week 2022.
YEAR 2020-2021
high of ₹380 during Bull run was followed
this period. by a prolonged bear
Priced at ₹290,
run, hitting a 52-week FDC shares
indicating a 31% growth 2022-2023
low of ₹255. declined from
from the start of the
₹310-320 levels
APRIL 2020 financial year. The bear In the first quarter of
to ₹240-250
run started after the financial year
levels, indicating
Trading at ₹220- September 2020 and 2022-2023, the bear
a downward
240 levels, the continued till the end run persisted,
trend from
stock exhibited of this financial year. touching a low of
October 2022
positive ₹225 in June.
to March 2023.
momentum.
 Alliance
University FDC LTD. 0

Promoters FIIs DIIs Retail Others

125

100
20.9% 20.3% 18.3%

4.0% 5.9% 8.3%

75 5.7% 4.5% 3.8%

50

25
69.4% 69.4% 69.5%

0
March,2021 March,2022 March,2023

SHAREHOLDING PATTERN OF THE COMPANY

 Alliance
University FDC LTD. 0
Shareholding Pattern of the company

Between 2020 and 2023, FDC Ltd.'s shareholding pattern reveals:

1. Promoter Group: Increased shareholding by 0.1%

2. Foreign Institutional Investors: Decreased shareholding by

1.9%, possibly due to profit-booking or strategic changes in
investment, suggesting a cautious approach.

3. Domestic Institutional Investors: Increased shareholding by

4.3%, reflecting positive outlook and confidence in the company's
future performance.

4. Retail Investors: Decreased shareholding by 2.5%, possibly

due to factors like risk aversion or lack of awareness, indicating
reduced confidence among individual investors.

In summary, the data suggests that FDC Ltd. saw increased confidence from the promoter group and domestic institutional
investors, while foreign institutional investors and retail investors displayed reduced confidence in the company's prospects during
this period.
 Alliance
University
PLEDGING OF SHARES
BY PROMOTERS
FDC Ltd. experienced no
pledging of shares by its
promoters between April 1,
2020, and March 31, 2023,
indicating promoter
confidence in the company's
future without using shares as
collateral, signaling stability
and positive long-term
prospects for the company.
FDC LTD.
SPLIT OF SHARES
FDC Ltd. maintained a
constant number of shares
outstanding without any splits
from April 2020 to March
2023.
0
BONUS SHARES
Eris Lifescience Ltd.
refrained from issuing any
bonus shares from April
2020 to March 2023,
indicating no distribution
of additional shares to
existing shareholders
during this period.
Alliance
University ANNUAL REPORT 0

THANK YOU

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