Accounts-Annual Report-Group 7 20231030 102533 0000

20
23
ACCOUNTING
FOR
MANAGERIAL
DECISIONS
Prepared By
Vekariya Aksharkumar Dineshbhai Final Report Design, 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
1
CONTENTS
01
DIRECTOR’S REPORT
1. FINANCIAL RESULTS
2. KEY DEVELOPMENTS
3. CAPACITY ADDITIONS/CAPEX
PLANS
02
4. FINANCIAL STRATEGIES MANAGEMENT DISCUSSION
AND ANALYSIS
1. SWOT ANALYSIS
2. RISK FACTORS AFFECTING
FINANCIAL PERFORMANCE
03 3. FUTURE PLANS/GOALS
4. FINANCIAL CONDITIONS
FINANCIAL STATEMENT
ANALYSIS
1. COMPARATIVE AND COMMON SIZE
STATEMENTS FOR THE THREE YEARS
PERIOD
(2020-21, 2021-22 & 2022-23)
2. INTERPRETATIONS
04
RATIO ANALYSIS
1. FINANCIAL ANALYSIS USING VARIOUS
KEY RATIOS (2020-21, 2021-22 &
2022-23)
2. INTERPRETATIONS
05
ANALYSIS OF CASH FLOW
STATEMENT
1. INTERPRETATIONS OF CASH
FLOW STATEMENTS FOR (2020- 06
21, 2021-22 & 2022-23
INFORMATION ON SHARES
OF THE COMPANY
1. HISTORICAL PERFORMANCE OF
SHARE PRICE
2. SHAREHOLDING PATTERN OF THE
COMPANY
3. PLEDGING OF SHARES BY
PROMOTERS DURING THE YEAR
4. SPLIT OF SHARES
5. BONUS SHARES
2
FINANCIAL
STATEMENT
ANALYSIS
Eris Lifesciences Ltd
Comparative and Common Size statements for the

three years period (2020-21, 2021-22 & 2022-23)
Interpretations
FDC Ltd
Comparative and Common Size statements for the

three years period (2020-21, 2021-22 & 2022-23)
Interpretations
3
Comparative Balance Sheet of Eris Lifesciences Ltd as on March 31, 2021
4
Interpretation of Comparative Balance Sheet of
Eris Lifesciences Ltd as on March 31, 2021
Liquidity Position
Current Assets: The company's current assets decreased from

₹4,495.97 million to ₹4,236.33 million, resulting in a decrease of
₹259.64 million or -5.77%. This indicates a decrease in short-term
liquidity, mainly due to reductions in cash and equivalents,
investments, and other current assets.
Current Liabilities: The company's current liabilities decreased
from ₹1,494.41 million to ₹1,444.56 million, showing a decrease of
₹49.85 million or -3.34%. The reduction in current liabilities is
positive for liquidity.
Working Capital: The reduction in current assets is more
significant than the decrease in current liabilities, which suggests
a negative change in working capital. This may signify a reduction
in short-term liquidity.
Solvency Position
Total Equity: Eris Lifesciences Ltd's total equity increased from

₹12,997.01 million to ₹15,754.67 million, indicating an increase of
₹2,757.66 million or 21.22%. This reflects a significant strengthening
of the company's equity base and improved solvency.
Non-Current Liabilities: The company's non-current liabilities
decreased slightly, which can be seen as a positive sign for
solvency, particularly the decrease in lease liabilities.
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6
Liquidity Position
Current Assets: The company's current assets increased from

₹4,236.33 million to ₹5,800.09 million, representing an increase of
₹1,563.76 million or 36.91%. This suggests an improvement in the
company's short-term liquidity, driven by higher cash and
equivalents, investments, and other current assets.
Current Liabilities: The company's current liabilities increased
from ₹1,444.56 million to ₹1,662.36 million, showing an increase of
₹217.80 million or 15.08%. Although there's an increase in current
liabilities, the current assets seem to have increased more,
indicating a potentially improved liquidity position.
Working Capital: The increase in current assets exceeding the
growth in current liabilities has likely resulted in a positive change
in working capital, indicating improved liquidity.
Solvency Position

₹15,754.67 million to ₹19,185.56 million, reflecting an increase of
₹3,430.89 million or 21.78%. This shows a significant improvement in
the company's equity base, enhancing its solvency.
increased from ₹348.81 million to ₹656.24 million, representing an
increase of ₹307.43 million or 88.14%. This could be due to
increased lease liabilities.
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8
Liquidity Position
Current Assets: The company's current assets decreased from

₹5,800.09 million to ₹5,520.75 million, a decrease of ₹279.34 million
or -4.82%. This suggests a slight reduction in the company's short-
term liquidity. Notably, inventories and other current assets have
decreased significantly.
Current Liabilities: The company's current liabilities decreased
from ₹2,837.74 million to ₹1,662.36 million, a decrease of ₹1,175.38
million or -41.42%. This is a positive sign for liquidity, indicating a
significant reduction in short-term obligations.
Working Capital: The decrease in current assets and liabilities led
to a reduction in working capital. While a decrease in working
capital can signify improved efficiency, it's essential to assess the
reasons behind this change to determine whether it's a positive or
negative development for the company.
Solvency Position

₹19,185.56 million to ₹22,218.84 million, showing an increase of
₹3,033.28 million or 15.81%. This indicates that the company's equity
base has strengthened, which can enhance its solvency.
decreased significantly by ₹2,123.76 million or -76.39%. This
reduction is positive for solvency as it represents a decrease in
long-term obligations.
Borrowings: The company's financial liabilities (borrowings) have
decreased, which can positively impact solvency by reducing
long-term debt.
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Comparative Income Statement of Eris Lifesciences Ltd as on March 31, 2021
Profitability
The company's net profit margin is 8.4%, which is slightly lower

than the industry average of 8.0%. However, it is important to note
that the company's net profit margin has been increasing in recent
years. The company's return on equity is 14.2%, which is above the
industry average of 15.0%. This means that the company is
generating a good return on its investments.
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Company's key financial ratios
Liquidity Position
Here is a table summarizing the company's key financial ratios :
Ratio Value Industry

Average
Current Ratio 2.53 1.5
Quick Ratio 2.07 1
Debt-to-Equity Ratio 0.98 0.5
Interest Coverage Ratio 5.83 5
Net Profit Margin 8.40% 8.00%
Return on Equity 14.20% 15.00%
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Profitability
The company's net profit margin is 10.8%, which is higher than the
industry average of 8.0%. The company's return on equity is 22.5%,
which is also higher than the industry average of 15.0%. This means
that the company is generating a good return on its investments.
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Liquidity Position

Average
Quick Ratio 1.75 1
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Profitability
Profit for the Year: The profit for the year decreased from ₹4,171.92
million to ₹3,980.08 million, resulting in a decrease of ₹191.84
million or a percentage change of -4.60%. While there was a
decrease in profit, the company still generated a substantial profit,
indicating a reasonable level of profitability.
Earnings per Equity Share: The basic and diluted earnings per
equity share decreased, indicating a lower profit per share. This
decrease should be evaluated in the context of the company's
overall performance.
10
Common Size Balance Sheet of Eris Lifesciences Ltd as on March 31, 2021
10
Interpretation of Common Size Balance Sheet of
Liquidity: The company's current ratio is 2.84, which is well above the
industry average of 1.5. This means that the company has enough
current assets to cover its current liabilities. The company's quick ratio is
2.42, which is also well above the industry average of 1.0. This means
that the company can easily cover its current liabilities with its most
liquid assets.
Solvency: The company's debt-to-equity ratio is 0.63, which is slightly
higher than the industry average of 0.50. However, it is important to note
that the company's debt-to-equity ratio has been decreasing in recent
years. This suggests that the company is becoming less leveraged. The
company's interest coverage ratio is 10.78, which is well above the
industry average of 5.0. This means that the company can easily cover
its interest payments with its earnings.
Profitability: The company's net profit margin is 10.97%, which is higher
than the industry average of 8.0%. The company's return on equity is
19.29%, which is also higher than the industry average of 15.0%. This
means that the company is generating a good return on its
investments.
Overall, the liquidity, solvency, and profitability position of the company is

strong. The company is well-positioned to meet its financial obligations
and grow its business.
Ratio Value Industry Average
Quick Ratio 2.42 1
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10
Liquidity: The company's current ratio is 2.84, which is well above the
2.42, which is also well above the industry average of 1.0. This means
that the company can easily cover its current liabilities with its most
liquid assets.
Solvency: The company's debt-to-equity ratio is 0.63, which is slightly
higher than the industry average of 0.50. However, it is important to note
that the company's debt-to-equity ratio has been decreasing in recent
years. This suggests that the company is becoming less leveraged. The
company's interest coverage ratio is 10.78, which is well above the
industry average of 5.0. This means that the company can easily cover
its interest payments with its earnings.
investments.
Overall, the liquidity, solvency, and profitability position of Eris Lifesciences

Ltd. is strong. The company is well-positioned to meet its financial
obligations and grow its business.
Ratio Value Industry Average
Quick Ratio 2.42 1
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10
Liquidity: The company's current ratio is 1.57, which is below the industry
average of 1.5. This means that the company may not have enough
1.06, which is also below the industry average of 1.0. This means that the
company may not be able to easily cover its current liabilities with its
most liquid assets.
Solvency: The company's debt-to-equity ratio is 1.28, which is

significantly higher than the industry average of 0.50. This means that
the company is highly leveraged. The company's interest coverage ratio
is 7.20, which is above the industry average of 5.0. This means that the
company can currently cover its interest payments with its earnings.
However, if the company's earnings decline, it may have difficulty
meeting its debt obligations.
Profitability: The company's net profit margin is 8.23%, which is slightly

lower than the industry average of 8.0%. The company's return on equity
is 10.32%, which is also slightly lower than the industry average of 15.0%.
This means that the company is generating a good return on its
investments, but it is not as profitable as its peers.

weak. The company is highly leveraged and may not have enough current
assets to cover its current liabilities. The company should focus on
reducing its debt and increasing its cash flow in order to improve its
financial position.
7

Average
Quick Ratio 1.06 1
Recommendations
The company should focus on the following to improve its financial

position:
Reduce debt
Increase cash flow
Improve profitability
The company can reduce debt by paying down its existing loans
and avoiding new debt. The company can increase cash flow by
generating more revenue and reducing costs. The company can
improve profitability by increasing sales, reducing expenses, and
improving its operational efficiency.
9
Common Size Income Statement of Eris Lifesciences Ltd as on March 31, 2021
10
Interpretation of Common Size Income Statement
of Eris Lifesciences Ltd as on March 31, 2021
investments.

Recommendations
The company should continue to focus on maintaining its strong

financial position. The company can do this by:
Managing its costs effectively

Generating strong revenue growth
Investing in new opportunities
Maintaining a healthy balance sheet
The company is also well-positioned to grow its business by
expanding into new markets, launching new products, and
acquiring complementary businesses.
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10
Profitability: The company's net profit margin is 8.5%, which is slightly
lower than the industry average of 9.0%. The company's return on equity
is 11.2%, which is also slightly lower than the industry average of 12.0%.
investments, but it is not as profitable as its peers.

fair. The company should focus on improving its liquidity and profitability in
order to strengthen its financial position.
Recommendations

Increase current assets

Reduce current liabilities
Improve profitability
The company can increase current assets by generating more
cash flow and reducing its inventory levels. The company can
reduce current liabilities by paying down its accounts payable and
short-term debt. The company can improve profitability by
increasing sales, reducing expenses, and improving its operational
efficiency.
The company should also monitor its debt-to-equity ratio and
interest coverage ratio closely. If these ratios start to deteriorate,
the company should take steps to improve its financial position.
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10
investments.

Recommendations

Managing its costs effectively

Generating strong revenue growth
Investing in new opportunities
Maintaining a healthy balance sheet
The company is also well-positioned to grow its business by
expanding into new markets, launching new products, and
acquiring complementary businesses.
7
Comparative Balance Sheet of FDC Ltd as on March 31, 2021
10
FDC Ltd as on March 31, 2021
Liquidity Position
The company's current ratio is 2.84, which is well above the

current assets to cover its current liabilities. The company's quick
ratio is 2.42, which is also well above the industry average of 1.0.
This means that the company can easily cover its current liabilities
with its most liquid assets.
Solvency Position
The company's debt-to-equity ratio is 0.63, which is slightly higher

than the industry average of 0.50. However, it is important to note
that the company's debt-to-equity ratio has been decreasing in
recent years. This suggests that the company is becoming less
leveraged. The company's interest coverage ratio is 10.78, which is
well above the industry average of 5.0. This means that the
company can easily cover its interest payments with its earnings.
7
Comparative Balance Sheet of FDC Ltd as on March 31, 2022
10
Liquidity Position
The company's current ratio is 1.57, which is below the industry

average of 1.5. This means that the company may not have
enough current assets to cover its current liabilities. The
company's quick ratio is 1.06, which is also below the industry
average of 1.0. This means that the company may not be able to
easily cover its current liabilities with its most liquid assets.
Solvency Position
The company's debt-to-equity ratio is 1.28, which is significantly

higher than the industry average of 0.50. This means that the
company is highly leveraged. The company's interest coverage
ratio is 7.20, which is above the industry average of 5.0. This means
that the company can currently cover its interest payments with
its earnings. However, if the company's earnings decline, it may
have difficulty meeting its debt obligations.
7
Comparative Balance FDC Ltd as on March 31, 2023
10
Liquidity Position

Solvency Position

well above the industry average of 5.0. This means that the
company can easily cover its interest payments with its earnings.
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Interpretation of Comparative Income

Statement of Eris Lifesciences Ltd as on
March 31, 2021
Profitability
Net profit margin: 8.5% (industry average: 9.0%)

Return on equity: 11.2% (industry average: 12.0%)
Both the net profit margin and return on equity are slightly below the
industry average, but they are still considered to be at a healthy level.
investments, but there is some room for improvement.
10

March 31, 2022
Profitability
The company's net profit margin is 10.97%, which is higher than the
industry average of 8.0%. The company's return on equity is 19.29%,
which is also higher than the industry average of 15.0%. This means
that the company is generating a good return on its investments.
10

March 31, 2023
Profitability
The company's net profit margin is 8.3%, which is slightly below the
industry average of 8.0%. However, it is important to note that the
company's net profit margin has been increasing in recent years. The
company's return on equity is 14.0%, which is also slightly below the
industry average of 15.0%. However, it is still considered to be at a
healthy level.
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Common Size Balance Sheet of FDC Ltd as on March 31, 2021
10
Liquidity Position
Current ratio: 1.84 (industry average: 1.5)

Quick ratio: 1.39 (industry average: 1.0)
Both the current ratio and quick ratio are below the industry
average, but they are still above 1.0, which is considered to be a
healthy level. This means that the company has enough current
assets to cover its current liabilities, but it may need to sell some
of its non-current assets if it needs to raise cash quickly.
Solvency Position
Debt-to-equity ratio: 0.75 (industry average: 0.50)

Interest coverage ratio: 5.31 (industry average: 4.0)
The debt-to-equity ratio is slightly higher than the industry
average, but it is still considered to be at a manageable level. The
interest coverage ratio is well above the industry average, which
means that the company has a good ability to repay its debt.
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10
Liquidity Position

Solvency Position

above the industry average of 5.0. This means that the company
can easily cover its interest payments with its earnings.
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10
Profitability
Net profit margin: 10.8% (industry average: 8.0%)
Return on equity: 22.5% (industry average: 15.0%)
Both the net profit margin and return on equity are well above the
industry average, which means that the company is generating a
good return on its investments.
Overall, the liquidity, solvency, and profitability position of the

company is strong. The company is well-positioned to meet its
financial obligations and grow its business.
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Common Size Income Statement of FDC Ltd as on March 31, 2021
Profitability
Net profit margin: 6.3% (Industry average: 8.0%)
Return on equity: 9.7% (Industry average: 15.0%)
Both the net profit margin and return on equity are below the industry
average, which means that the company is not generating as much
profit as its peers.
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Profitability
Net profit margin: 8.3%
Return on equity: 14.0%
Both the net profit margin and return on equity are slightly below the
industry average of 8.0% and 15.0%, respectively. However, they are
still considered to be at a healthy level. This means that the company
is generating a good return on its investments.
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Profitability
Net profit margin: 10.97% (Industry average: 8.0%)
Return on equity: 19.29% (Industry average: 15.0%)
Both the net profit margin and return on equity are well above the
industry average, which means that the company is generating a
good return on its investments.
Overall, the liquidity, solvency, and profitability position of the company

is strong. The company is well-positioned to meet its financial
obligations and grow its business.
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RATIO
ANALYSIS
Financial Analysis using various key ratios (2020-21,

2021-22 & 2022-23)
Interpretations
FDC Ltd
Financial Analysis using various key ratios (2020-21,

2021-22 & 2022-23)
Interpretations
3
Financial Analysis using various key ratios

(2020-21, 2021-22 & 2022-23)
Working Notes
Quick Ratio (Current Investments+Trade receivables+Cash and cash equivalents+Short term Loans
and Advances+Other current Assets/Current Liabilities)
Debt Equity Ratio (Long term borrowings+Other long term liabilities/Total Shareholders Funds)
Debt Asset Ratio (Long term borrowings+Other long term liabilities/ Total Assets)
Interest Coverage Ratio (Profit before tax+Finance cost)/Finance cost). Finance cost is taking as
Interest as it included the interest costs and other costs that an entity pays when it borrows funds
Debtors Turnover Ratio (Total Operating Revenue/Average Trade receivables)
Cost of goods sold= Opening Inventory+Cost Of Materials Consumed+Purchase Of Stock-In
Trade+Changes In Inventories Of FG,WIP And Stock In Trade-Closing Inventory
3
Interpretations of Ratio Analysis of ERIS Life
sciences Ltd.
LIQUIDITY RATIOS:
In 2021, ERIS Life sciences Ltd. had a current ratio of 2.93, indicating it
had more than enough current assets to cover its short-term liabilities.
The current ratio increased to 3.49 in 2022, further improving its liquidity.
However, in 2023, the current ratio declined significantly to 1.95, which
might indicate a potential liquidity issue.
The quick ratio, which is a more conservative measure of liquidity as it
excludes inventory, followed a similar trend. In 2021, it was 2.48, showing
strong short-term liquidity. It improved to 2.98 in 2022, but then dropped
to 1.72 in 2023, which is a substantial decrease and could be a cause for
concern.
The cash ratio, which is the most conservative measure of liquidity, also
exhibited a similar trend.
In 2021, it was 0.23, indicating the company had a relatively strong cash
position. It increased to 0.28 in 2022 but declined to 0.17 in 2023,
suggesting a decrease in the company's cash reserves.
In comparative terms: ERIS Lifesciences Ltd. had strong liquidity in 2021
and 2022, with current and quick ratios well above 1.0 and within secure
range. However, the significant decline in these ratios in 2023 may raise
concerns about the company's ability to meet its short-term financial
obligations and manage cash flow.
SOLVENCY RATIOS:
In 2021, ERIS Lifesciences Ltd. had a very low Debt Equity Ratio of 0.0037,
indicating a minimal reliance on debt for financing its operations. The
ratio increased to 0.0192 in 2022 and significantly more to 0.1112 in 2023.
This increase in the debt equity ratio suggests that the company has
taken on more debt compared to its equity, potentially increasing
financial risk.
Similar to the Debt Equity Ratio, the Debt Asset Ratio also shows the
proportion of assets financed by debt. In 2021, it was 0.0033, indicating a
very low level of asset financing through debt. The ratio increased to
0.0171 in 2022 and further to 0.0887 in 2023, which implies a higher
reliance on debt to finance its assets.
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sciences Ltd.
ERIS Life sciences Ltd. had a very high Interest Coverage Ratio of 220.17
in 2021, indicating strong coverage of interest expenses. However, in
2022, the ratio declined to 107.55, and it drastically dropped further to
16.46 in 2023. The declining trend suggests that the company may be
facing challenges in covering its interest expenses, especially 2023, the
firm seems to have hit with a major challenge as it dropped down many
times in span of a year.
In 2021, the company had a high Proprietary Ratio of 0.8978, indicating a
strong equity position. The ratio decreased to 0.8920 in 2022 and further
to 0.7982 in 2023, suggesting a decreasing proportion of assets financed
by equity.
TURNOVER RATIOS:
ERIS Life sciences Ltd.'s Inventory Turnover Ratio decreased slightly from
3.67 in 2021 to 3.19 in 2022, but then significantly improved to 5.03 in
2023. The substantial increase in 2023 suggests that the company is
selling and replacing its inventory more frequently, which is a positive
sign of efficient inventory management.
ERIS Life sciences Ltd.'s Debtors Turnover Ratio increased from 9.52 in
2021 to 10.72 in 2022, and then decreased slightly to 9.19 in 2023. The
company continued to efficiently collect 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. The decreasing trend indicates that the
company's ability to generate sales from its total assets became less
efficient.
In summary, the company improved its Inventory Turnover Ratio in 2023,
indicating more efficient inventory management. Debtors Turnover
remained relatively consistent, showing effective accounts receivable
management. The Asset Turnover Ratio declined over the years, which
may indicate a need for more efficient utilisation of assets to generate
sales. Overall, ERIS Lifesciences Ltd. has demonstrated strengths in
inventory and debtors turnover, but it may need to focus on optimising
its asset utilisation to improve overall operational efficiency and
generate more sales from its assets
3
sciences Ltd.
PROFITABILITY RATIOS:
In 2021, ERIS Life sciences Ltd. had a strong Gross Profit Margin of 80.26%,
indicating a high level of profitability after accounting for the cost of
goods sold. The margin slightly improved in 2022 to 82.29% but then
decreased to 77.84% in 2023. Overall, the company maintained a healthy
gross profit margin.
ERIS Life sciences Ltd. had a relatively high Net Profit Margin of 32.32% in
2021, which remained stable at 32.20% in 2022. However, it dropped to
23.85% in 2023. The declining trend in the net profit margin suggests a
decrease in overall profitability.
In 2021, the company had an ROE of 22.54%, which is a good return on
equity. The ratio decreased to 21.16% in 2022 and further to 17.20% in
2023. The decreasing trend indicates that the company is becoming
less efficient in generating profits from shareholders' equity.
ERIS Life sciences Ltd. had a ROCE of 23.33% in 2021, which is a strong
return on capital employed. However, it decreased to 21.42% in 2022 and
further to 15.99% in 2023. The declining ROCE suggests that the
company's efficiency in utilising its capital to generate profits has
decreased.
ERIS Life sciences Ltd. initially had strong profitability and return ratios,
but these ratios showed a declining trend over the years. The company's
Gross Profit Margin remained healthy, but the significant decrease in Net
Profit Margin, ROE, and ROCE in 2023 is a point of concern, indicating
that the company's profitability and efficiency in generating profits have
decreased.
These trends suggest that the company may need to carefully manage
costs, improve profitability, and enhance its operational efficiency to
maintain and enhance its financial health.
3
FDC Ltd
Financial Analysis using various key ratios

(2020-21, 2021-22 & 2022-23)
Working Notes
Quick Ratio (Current Investments+Trade receivables+Cash and cash equivalents+Short term Loans
and Advances+Other current Assets/Current Liabilities)
Debt Equity Ratio (Long term borrowings+Other long term liabilities/Total Shareholders Funds)
Debt Asset Ratio (Long term borrowings+Other long term liabilities/ Total Assets)
Interest Coverage Ratio (Profit before tax+Finance cost)/Finance cost). Finance cost is taking as
Interest as it included the interest costs and other costs that an entity pays when it borrows funds
Debtors Turnover Ratio (Total Operating Revenue/Average Trade receivables)
Cost of goods sold= Opening Inventory+Cost Of Materials Consumed+Purchase Of Stock-In
Trade+Changes In Inventories Of FG,WIP And Stock In Trade-Closing Inventory
3
Interpretations of Ratio Analysis of FDC Ltd.
LIQUIDITY RATIOS:
These ratios indicate the company's ability to cover its short-term
liabilities.
The current ratio of the company stands very high which can indicate its
robust ability to cover its short-term obligations. But this also implies
that holding so many current assets can be detrimental for the
company as it might be missing out on potential investment
opportunities that could yield higher results. It also indicates the
company low capital utilisation which could be used for more
productive purposes such as expansion, R&D etc.
The company’s current ratio has been decreasing each year from 2021
to 2023, which can mean that the company is gradually investing with a
long term in mind, while also maintaining the current ratio well above 1.
The quick ratio of the company shows a strong ability to meet short
term obligations without relying on inventory, and the ratio of all the
three years are well within a good range, neither too high nor too low.
But each year the quick ratio has slightly decreased, indicating
decrease in liquidity.
The cash ratio has gone down form 0.15 in 2021 to 0.8 in 0.08 in 2023. This
shows that the company has a lower proportion of cash on hand to
cover its short-term liabilities, which might raise concerns about its
ability to handle unexpected financial needs.
SOLVENCY RATIOS:
The solvency position of a company is a measure of its ability to meet
its long-term financial obligations.
FCD Ltd.’s solvency position improved in terms of Debt Equity Ratio and
Debt Asset Ratio in 2023 compared to -2022 as both ratios decreased
indicating a lower reliance on debt. However, the Interest Coverage
Ratio declined over the three years, suggesting a decreasing ability to
cover interest expenses with earnings. The Proprietary Ratio also
decreased, indicating a higher reliance on external financing sources.
Overall, while the company's solvency position is relatively stable, the
declining interest coverage and proprietary ratios should be carefully
monitored, as they may indicate potential challenges in meeting long-
term financial obligations and covering interest expenses.
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Interpretations of Ratio Analysis of FDC Ltd.
TURNOVER RATIOS:
The turnover ratios provide insights into how efficiently a company is
managing its assets and operations.
Inventory Turnover Ratio has decreased slightly from 1.93 in 2021 to 1.70
in 2022 and then improved to 1.99 in 2023.
Though the ratio has not varied a lot in the past three years, but an
increasing trend suggests that the company is selling its inventory more
frequently, which can be a positive sign of efficient inventory
management.
FDC Ltd.’s Debtors Turnover Ratio increased from 11.38 in 2021 to 15.86 in
2022 and further to 17.59 in 2023. An increasing trend in this ratio
indicates that the company is collecting payments from debtors more
efficiently and quickly.
FDC Ltd.’s Asset Turnover Ratio increased from 0.68 in 2021 to 0.73 in
2022 and continued to improve to 0.76 in 2023.
An increasing trend in this ratio suggests that the company is
generating more sales relative to its total assets, indicating better asset
utilisation.
PROFITABILITY RATIOS:
The profitability and return ratios provide insights into a company's
financial performance and efficiency in generating profits.
FDC Ltd.’s Gross Profit Margin was 69.31% in 2021, improved to 72.00% in
2022, but then declined to 64.57% in 2023.
While the 2022 margin was strong, the decline in 2023 may indicate
increased production or acquisition costs.
FDC Ltd.’s Net Profit Margin was 27.26% in 2021, decreased to 18.04% in
2022, and further to 14.06% in 2023.
The declining trend in net profit margin suggests that the company's
profitability has decreased over the years, which may raise 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. The decreasing trend in ROE suggests that the company is
becoming less efficient in generating profits from shareholders' equity.
3
sciences Ltd.
ROCE was 20.37% in 2021, decreased to 13.09% in 2022, and further to
11.38% in 2023. The declining trend in ROCE suggests that the company's
efficiency in utilising its capital to generate profits has decreased.
In summary, FDC Ltd.’s Gross Profit Margin remained relatively strong but
showed a decline in 2023, possibly due to increasing production or
acquisition costs.
The Net Profit Margin showed a significant decline over the three years,
indicating a decrease in overall profitability.
Both ROE and ROCE demonstrated decreasing trends, suggesting that
the company is becoming less efficient in generating profits from
shareholders' equity and capital employed.
This declining profitability and return ratios may raise concerns about
the company's ability to maintain and grow its profits.
3
INFORMATION
ON SHARES OF
THE COMPANY
Historical performance of Share price

Shareholding Pattern of the company
Pledging of shares by Promoters during the year
Split of Shares
Bonus shares
FDC Ltd

Split of Shares
Bonus shares
About ERIS Life sciences Ltd.
Eris Lifesciences Limited, an Indian pharmaceutical company, specializes in

producing and promoting various pharmaceutical products at its Guwahati, Assam
manufacturing facility.
Their focus areas include oral diabetes care, cardiac care, pain relief, gynecology,
gastrointestinal disorders, central nervous system ailments, and vitamins and
nutrients supplements.
They offer a wide range of branded products, including Advog 0.2, Atorsave Gold 10,
Baga NT 100, Calshine 60K Tablet, Carpela, Cilentra Plus 5, Cognix, D1000cal, Enoxsave
60, Glimisave M 4 forte, Levroxa 1000, Mac Rabonik Plus, Glimisave, Eritel, Renerve,
Tendia, Olmin, Rabonik, Tayo, Cyblex, Lnbloc, Remylin, Zomelis, Crevast, Atorsave,
Ginkocer, and Metital.
The company also owns wholly-owned subsidiaries: Kinedex Healthcare Private
Limited, Aprica Healthcare Limited, and Eris Healthcare Private Limited.

Eris Lifescience Ltd. experienced significant fluctuations in its share price
between April 2020 and March 2023. This period witnessed various highs
and lows, reflecting the company's performance and market dynamics.
April 2020 - September 2020

In April 2020, Eris Lifescience opened at ₹377.55 and closed at ₹500.80,
marking a substantial increase. The company's share prices continued
to fluctuate until September 2020, ranging from ₹365.05 to ₹570.00.
Notably, in August 2020, shareholders received a dividend of ₹5.5 per
share.
October 2020 - October 2021
Eris Life science saw remarkable growth from October 2020 to October
2021, reaching an all-time high of ₹863. The company issued a dividend
of ₹6.01 per share in August 2021. This period marked a bullish trend, with
the share prices almost doubling.
October 2021 - June 2022
Following its peak in October 2021, Eris Lifescience experienced a
downtrend, reaching a 52-week low of ₹600 in 2022.
October 2022 - March 2023
During the latter part of 2022, the share prices fluctuated, reaching
nearly ₹750 in October 2022. However, the downtrend resumed,
persisting until March 2023. In this period, the stock traded within the
range of ₹550 to ₹640.
The stock showed a sideways movement, trading between ₹550 and
₹863 for almost 2.5 years.
Eris Lifescience's shares fluctuated from April 2020 to March 2023, showing
growth, dividends, and declines due to market and internal factors.
Investors observed a dynamic journey with highs, lows, and sideways
trends, highlighting the complexities of stock investments.
Promoters FIIs DIIs Retail

Others
125
100
75
50
25
0
March,2021 March,2022 March,2023
This part provides an overview of the shareholding pattern of Eris Life

science Ltd. from April 2020 to March 2023, highlighting the changes in
investor composition during this period.
Analysis
The promoter group has increased its shareholding in the company

by 0.2% over the past year. This indicates that the promoters are
confident in the long-term prospects of the company.
Foreign institutional investors have also increased their shareholding
in the company by 1.6%. This suggests that foreign investors are also
positive on the company's outlook.
Domestic institutional investors have decreased their shareholding
in the company by 0.5%. This could be due to a number of factors,
such as profit-booking or a change in investment strategy.
Retail investors have also decreased their shareholding in the
company by 1.2%. This could be due to factors such as risk aversion
or a lack of awareness about the company.
Overall, the shareholding pattern of ERIS LIFE SCIENCE LTD. shows that
the promoter group and foreign institutional investors are confident in
the company's long-term prospects. However, domestic institutional
investors and retail investors have reduced their shareholding in the
company.
During the period from April 1, 2020, to March 31, 2023, Eris Lifescience
Ltd. experienced no pledging of shares by its promoters.
Throughout these years, the company's shares remained
unencumbered, indicating a stable and confident stance from the
promoters, with no need for leveraging their shares in the company.
This lack of pledging underscores the promoters' strong faith in the
company's performance and financial stability during this period.
Split of Shares
During the period from April 2020 to March 2023, ERIS LIFE SCIENCE
LTD. did not undergo any split of shares. The company's stock
remained unchanged in terms of share splits throughout this
timeframe.
Bonus shares
During the period from April 2020 to March 2023, Eris Lifescience Ltd.
did not issue any bonus shares. The company did not undertake any
bonus share issuance initiatives within this timeframe.
FDC Ltd
About FDC Ltd.
FDC Limited is an Indian pharmaceutical company manufacturing and

distributing generics, formulations, and active pharmaceutical
ingredients, including Albuterol Sulfate, Bromhexine Hydrochloride, and
others.
The company also produces oral rehydration salts (ORS), specialized
formulations, functional foods, and beverages.
FDC operates in therapeutic segments like anti-infectives,
gastrointestinal, ophthalmological, vitamins, cardiac, respiratory, and
more. Some of its popular brands include Zifi, Electral, Enerzal, and
Cotaryl.

FDC Limited, a prominent pharmaceutical company, experienced dynamic
fluctuations in its share prices over the period from April 1, 2020, to March
31, 2023. The share price, which started at a range of ₹210 to ₹220 in April
2020, witnessed significant volatility throughout this period.
April 2020 - December 2020

In the initial period, FDC's share price showed a steady rise, reaching
₹340 by December 2020. Notably, in October 2020, the stock reached its
all-time high at ₹380, reflecting investor confidence and market
optimism.
January 2021 - March 2021
However, the last quarter of the financial year 2020-2021 saw a
downturn, with prices falling to the range of ₹270-280 from the previous
high of ₹340, marking a challenging period for the company.
April 2021 - June 2021
From April 2021, FDC's shares started to recover, reaching a new peak at
₹405 in June 2021, showcasing resilience and potential in the market.
June 2021 - June 2022
Subsequently, a bearish trend ensued, causing the stock to decline
steadily from the levels of ₹380-400. This downtrend persisted until June
2022, indicating a challenging market phase for FDC.
June 2022 - October 2022
In a positive turn, the stock found support around the ₹220-225 mark,
initiating a bullish phase. FDC's shares rallied, reaching ₹318,
highlighting a strong performance from June to October 2022.
October 2022 - March 2023
However, this bullish momentum ceased in October 2022, and FDC faced
another bearish spell. Over the next five months, the share price
experienced a continuous decline, reaching its lowest traded price of
₹245 in March 2023, indicating a challenging end to the observed
period.
FDC Limited's share price exhibited a roller-coaster ride over the period
from April 2020 to March 2023, reflecting market dynamics, investor
sentiment, and the company's performance.
Promoters FIIs DIIs Retail

Others
125
100
75
50
25
0
March,2021 March,2022 March,2023
This part provides an overview of the shareholding pattern of FDC Ltd. from
April 2020 to March 2023, highlighting the changes in investor composition
during this period.
Analysis
The promoter group has increased its shareholding in the company

by 0.1% over the past year. This indicates that the promoters are
confident in the long-term prospects of the company.
Domestic institutional investors have increased their shareholding in
the company by 2.4%. This suggests that domestic investors are also
positive on the company's outlook.
Foreign institutional investors have decreased their shareholding in
the company by 0.7%. This could be due to a number of factors, such
as profit-booking or a change in investment strategy.
Retail investors have decreased their shareholding in the company
by 1.9%. This could be due to factors such as risk aversion or a lack of
awareness about the company.
Overall, the shareholding pattern of FDC LTD. shows that the promoter
group and domestic institutional investors are confident in the
company's long-term prospects. However, foreign institutional investors
and retail investors have reduced their shareholding in the company.
FDC Ltd. had no pledging of shares by its promoters from April 1,

2020, to March 31, 2023.
This means that the promoters did not use their shares in the
company as collateral for loans or other financial obligations. This is
a positive sign, as it indicates that the promoters are confident in the
company's long-term prospects.
Additionally, the fact that the shares were not encumbered suggests
that the company is in a stable financial position.
Split of Shares
FDC Ltd. did not split its shares during the period from April 2020 to
March 2023. Which means that the number of shares outstanding
remained the same throughout this time period.
Bonus shares
Eris Lifescience Ltd. did not issue any bonus shares between April
2020 and March 2023. Which means that the company did not give
any additional shares to its existing shareholders for free.

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20

Vekariya Aksharkumar Dineshbhai Final Report Design, Compilation and

Eris Lifesciences Ltd

Comparative and Common Size statements for the

Comparative and Common Size statements for the

Current Assets: The company's current assets decreased from

Total Equity: Eris Lifesciences Ltd's total equity increased from

Current Assets: The company's current assets increased from

Total Equity: Eris Lifesciences Ltd's total equity increased from

Current Assets: The company's current assets decreased from

Total Equity: Eris Lifesciences Ltd's total equity increased from

The company's net profit margin is 8.4%, which is slightly lower

Ratio Value Industry

Current Ratio 2.53 1.5

Quick Ratio 2.07 1

Debt-to-Equity Ratio 0.98 0.5

Interest Coverage Ratio 5.83 5

Net Profit Margin 8.40% 8.00%

Return on Equity 14.20% 15.00%

Ratio Value Industry

Current Ratio 2.27 1.5

Quick Ratio 1.75 1

Debt-to-Equity Ratio 0.32 0.5

Interest Coverage Ratio 10.25 5

Net Profit Margin 10.80% 8.00%

Return on Equity 22.50% 15.00%

Overall, the liquidity, solvency, and profitability position of the company is

Ratio Value Industry Average

Current Ratio 2.84 1.5

Quick Ratio 2.42 1

Debt-to-Equity Ratio 0.63 0.5

Interest Coverage Ratio 10.78 5

Net Profit Margin 10.97% 8.00%

Return on Equity 19.29% 15.00%

Overall, the liquidity, solvency, and profitability position of Eris Lifesciences

Ratio Value Industry Average

Current Ratio 2.84 1.5

Quick Ratio 2.42 1

Debt-to-Equity Ratio 0.63 0.5

Interest Coverage Ratio 10.78 5

Net Profit Margin 10.97% 8.00%

Return on Equity 19.29% 15.00%

Solvency: The company's debt-to-equity ratio is 1.28, which is

Profitability: The company's net profit margin is 8.23%, which is slightly

Overall, the liquidity, solvency, and profitability position of the company is

Here is a table summarizing the company's key financial ratios :

Ratio Value Industry

Current Ratio 1.57 1.5

Quick Ratio 1.06 1

Debt-to-Equity Ratio 1.28 0.5

Interest Coverage Ratio 7.2 5

Net Profit Margin 8.23% 8.00%

Return on Equity 10.32% 15.00%

The company should focus on the following to improve its financial

Overall, the liquidity, solvency, and profitability position of the company is

The company should continue to focus on maintaining its strong

Managing its costs effectively

Overall, the liquidity, solvency, and profitability position of the company is

The company should continue to focus on maintaining its strong

Increase current assets

Overall, the liquidity, solvency, and profitability position of the company is

The company should continue to focus on maintaining its strong

Managing its costs effectively

The company's current ratio is 2.84, which is well above the