A

A
MODULE V PROJECT REPORT
ON

“Sun Pharmaceutical Industries Ltd.”

SUBJECT: MANAGEMEN ACCOUNTING

Submitted to
Anand Institute of Management and Information Science
IN THE PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
IN
Gujarat Technological University

Guided by
Prof. Sneha Sharma

Submitted by
Aditi Maheshbhai Patel
Enrolment No:247020592003
Vrundaliben Nileshkumar Ka.Patel
Enrolment No: 247020592099

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Table of Contents

Introduction: ............................................................................................................... 3
Ratio analysis of sun pharmaceutical industries Ltd ................................................... 3
Balance sheet of Sun pharmaceuticals Industry Ltd. ............................................... 12
Profit & loss Statement of sun Pharmaceutical Ltd. ................................................. 14
Cash flow statement of Sun pharmaceuticals Industry Ltd ....................................... 16

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Company name: Sun Pharmaceutical Industries Ltd.
Company type: Public
Industry: Pharmaceutical

Founder: Dilip Shanghvi

Founded: 1983; 41 years ago

Products: Pharmaceutical drugs, generic drugs, antiviral drugs,

over-the- counter drugs, Protein supplements, Vaccine,

Animal health, Diagnostics.

Introduction:
Sun Pharmaceutical Industries Ltd. was established by Dilip Shanghvi in 1983 in
Calcutta, West Bengal with five psychiatry products and a two-person marketing
team.Sun Pharma is the largest pharmaceutical company in India and one of the
world's largest generic pharmaceutical.Sun Pharma started with a small range of
products for psychiatric conditions. Over the years, it grew rapidly by expanding its
product line and acquiring other companies, like Ranbaxy in 2014. Today, it is known
for its high-quality medicines and strong presence in over 100 countries.

RATIO ANALYSIS OF SUN PHARMACEUTICAL INDUSTRIES LTD:

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1. Current Ratio = Current Assets
Current Liability

Table 1. Showing the current ratio from the year 2021, 2022, 2023

Year Current Assets Current Liability Current Ratio

2021 12066.34 8343.55 1.45:1
2022 9703.75 10105.83 0.96:1
2023 16465.15 8366.06 1.97:1

Interpretation:
The current ratio shows how easily the company can pay its short-term bills. In 2021,
it had enough assets to cover its liabilities (1.45:1), but in 2022, it struggled slightly
(0.96:1). By 2023, the company improved a lot, with nearly double the assets
compared to liabilities (1.97:1). Overall, its ability to handle short-term payments has
become much stronger.

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2. Quick Ratio = (Cash + Accounts Receivables + Marketable Securities)
Current Liabilities

Table 2. Showing the Quick ratio from the year 2021, 2022, 2023

Year Quick Assets Current Liability Quick Ratio

2021 12066.34 3165.72 1.07
2022 9703.75 3403.74 0.62
2023 16465.15 3989.19 1.49

Interpretation:

The quick ratio measures the company's ability to pay short-term liabilities using its
most liquid assets. In 2021, the ratio was 1.07, showing sufficient liquidity. It dropped
to 0.62 in 2022, indicating a struggle to meet short-term obligations. By 2023, the quick
ratio improved to 1.49, reflecting strong liquidity and financial health. Overall, the
company has significantly improved its short-term financial position after a decline in
2022.

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3. Debt to equity Ratio: Total Liability
Total Shareholder equity

Table 3. Showing Debt to equity ratio from the year 2021, 2022, 2023

Year Total liability Total Shareholder Debt to equity

Equity Ratio

2021 13958.67 25040.16 0.56

2022 16177.53 24587.95 0.66
2023 17239.13 23748.36 0.73

Interpretation:
The debt-to-equity ratio has increased from 0.56 in 2021 to 0.73 in 2023. This means
the company is using more debt to fund its operations over time. While some debt can
help growth, a rising ratio may increase financial risk if not controlled.

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4. Equity multiplier Ratio: Total Assets
Total Equity

Table 3. Showing Debt to equity ratio from the year 2021, 2022, 2023

Year Total Assets Total Equity Equity multiplier

Ratio
2021 38998.83 25040.16 1.56
2022 40765.48 24587.95 1.66
2023 40987.49 23748.36 1.73

Interpretation:
From 2021 to 2022, the ratio increased from 1.56 to 1.66, and from 2022 to 2023 it
increased from 1.66 to 1.73, it indicating a gradual rise in debt financing. This means
the company is relying more on borrowed funds to support its assets over the years.
While this can help in growth, it also increases financial risk.

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5. Stock turn-over Ratio: Cost of Goods Sold
Average Inventory

Table 3. Showing Debt to equity ratio from the year 2021, 2022, 2023

Year Cost of Goods Average Stock turn-over

Sold inventory Ratio
2021 10418.06 2899.70 3.59
2022 15211.64 3284.73 4.63
2023 18653.58 3696.47 5.05

Interpretation:
The stock turnover ratio measures how efficiently a company is selling and replacing
its inventory within a year. From 2021 to 2023, the stock turnover ratio has steadily
increased from 3.59 to 5.05. This indicates that the company has improved its
inventory management. 2023 Ratio suggests better inventory which can show lower
storage costs & improved company's efficiency in handling inventory.

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6. Debtor turn-over Ratio: Credit Sales
Average Debtors

Table 3. Showing Debt to equity ratio from the year 2021, 2022, 2023

Year Credit Sales Average debtors Debtor turn-over

Ratio
2021 12570.93 5307.89 2.37
2022 15518.50 5685.09 2.73
2023 20394.63 7929.59 2.57

Interpretation:
The debtor turnover ratio went up from 2.37 in 2021 to 2.73 in 2022, meaning the
company collected money from its customers faster. But in 2023, it fell slightly to 2.57,
showing that collections slowed down a bit. The company should work on improving
how quickly it gets payments from its customers.

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7. Return on equity: Profit after tax
Net Worth

Table 7. Showing Return on equity ratio from the year 2021, 2022, 2023

Year Profit after tax Net worth Return on equity

2021 2139.70 25040.16 0.09

2022 -99.99 24587.95 -0.004
2023 1690.72 23748.36 0.07

Interpretation:
The return on equity (ROE) ratio shows fluctuations over the years.In 2021, the ROE
was 0.09, indicating a good return. However, in 2022, the ratio dropped to -0.004
due to a loss, showing poor performance. By 2023, the ROE improved to 0.07,
reflecting a recovery in profit. Overall, the company’s profitability declined but
showed signs of improvement in 2023.

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8.Earning per share: Net Profit
Total No of share outstanding

Table 8. Showing Debt to equity ratio from the year 2021, 2022, 2023

Year Net profit Total number Earning per

of outstanding share
shares

2021 2139.70 239.93 8.92

2022 -99.99 239.93 -0.42
2023 1690.72 239.93 7.05

Interpretation:
It shows the company's overall performance through Earnings Per Share (EPS) for
three years.In 2021, the company performed strongly with a high EPS. In 2022, the
company experienced a declining stage, resulting in a negative EPS due to a net loss.
In 2023, the company recovered and achieved positive earnings, but the EPS
remained lower than in 2021.

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Balance sheet of Sun pharmaceuticals Industry Ltd.

Balance Sheet of Sun Mar-23 Mar-22 Mar-21

Pharmaceutical Industries (in Rs.
Cr.)
12 months 12 months 12 months
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 239.93 239.93 239.93
Total Share Capital 239.93 239.93 239.93
Reserves and Surplus 23,508.43 24,348.02 24,800.23
Total Reserves and Surplus 23,508.43 24,348.02 24,800.23
Total Shareholders Funds 23,748.36 24,587.95 25,040.16
NON-CURRENT LIABILITIES
Long Term Borrowings 7,586.73 4,865.64 4,833.56
Deferred Tax Liabilities [Net] 0 0 0
Other Long Term Liabilities 1,080.18 808.43 160.72
Long Term Provisions 206.16 397.63 620.84
Total Non-Current Liabilities 8,873.07 6,071.70 5,615.12
CURRENT LIABILITIES
Short Term Borrowings 5.94 3.07 1,651.98
Trade Payables 3,125.58 2,710.44 2,592.61
Other Current Liabilities 4,425.04 4,829.77 2,895.29
Short Term Provisions 809.5 2,562.55 1,203.67
Total Current Liabilities 8,366.06 10,105.83 8,343.55
Total Capital And Liabilities 40,987.49 40,765.48 38,998.83
ASSETS
NON-CURRENT ASSETS
Tangible Assets 4,733.25 4,969.57 4,873.98
Intangible Assets 3,978.42 4,743.21 370.38
Capital Work-In-Progress 328.87 358.94 442.85
Other Assets 0 0 0
Fixed Assets 9,564.58 10,541.42 6,007.15
Non-Current Investments 12,416.14 15,355.83 16,967.68
Deferred Tax Assets [Net] 1,032.39 324.04 1,337.45
Long Term Loans And Advances 632.7 3,656.63 71.39
Other Non-Current Assets 876.53 1,183.81 2,548.82
Total Non-Current Assets 24,522.34 31,061.73 26,932.49
CURRENT ASSETS
Current Investments 200.26 193.04 31
Inventories 3,989.19 3,403.74 3,165.72

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Trade Receivables 7,125.02 4,245.16 6,370.62
Cash And Cash Equivalents 421.28 534.96 232.26
Short Term Loans And Advances 3,347.03 9.1 738.57
OtherCurrentAssets 1,382.37 1,317.75 1,528.17
Total Current Assets 16,465.15 9,703.75 12,066.34
Total Assets 40,987.49 40,765.48 38,998.83
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 4,309.60 3,811.82 3,564.25
CIF VALUE OF IMPORTS
Raw Materials 0 0 0
Stores, Spares And Loose Tools 0 0 0
Trade/Other Goods 0 0 0
Capital Goods 0 0 0
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 7,151.14 7,187.43 3,033.37
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign -- -- --
Currency
EARNINGS IN FOREIGN
EXCHANGE
FOB Value Of Goods 15,405.26 10,633.05 8,449.28
Other Earnings -- -- --
BONUS DETAILS
Bonus Equity Share Capital 183.81 183.81 183.81
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted -- -- 9.02
Market Value
Non-Current Investments Unquoted -- -- 0.55
Book Value
CURRENT INVESTMENTS
Current Investments Quoted Market -- -- --
Value
Current Investments Unquoted Book 200.26 193.04 31
Value

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Profit & loss Statement of sun Pharmaceutical Ltd.:
Profit & Loss account of Sun Mar-23 Mar-22 Mar-21
Pharmaceutical Industries (in Rs. Cr.)

INCOME
Revenue From Operations [Gross] 20,394.63 15,518.50 12,570.93

Less: Excise/Sevice Tax/Other Levies 0 0 0

Revenue From Operations [Net] 20,394.63 15,518.50 12,570.93

Total Operating Revenues 20,812.14 15,585.98 12,803.21

Other Income 279.03 957.92 150.22

Total Revenue 21,091.17 16,543.90 12,953.43
EXPENSES
Cost Of Materials Consumed 5,165.63 4,584.97 3,809.11

Purchase Of Stock-In Trade 1,126.46 1,248.60 1,199.63

Operating And Direct Expenses 313.75 275.23 0

Changes In Inventories Of FG,WIP And -237.93 -183.18 -214.84

Stock-In Trade

Employee Benefit Expenses 2,156.95 2,000.78 1,798.45

Finance Costs 472.18 388.1 256.98

Depreciation And Amortisation Expenses 1,600.87 1,349.95 586.81

Other Expenses 5,814.42 4,752.06 3,274.86

Total Expenses 16,412.33 14,416.51 10,711.00
Profit/Loss Before Exceptional, 4,678.84 2,127.39 2,242.43
ExtraOrdinary Items And Tax

Exceptional Items -2,937.79 -1,820.53 -89.56

Profit/Loss Before Tax 1,741.05 306.86 2,152.87

Tax Expenses-Continued Operations

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Current Tax 752.77 -553.58 244.91
Less: MAT Credit Entitlement 0 0 0

Deferred Tax -702.44 960.43 -231.74

Tax For Earlier Years 0 0 0
Total Tax Expenses 50.33 406.85 13.17
Profit/Loss After Tax And Before 1,690.72 -99.99 2,139.70
ExtraOrdinary Items

Profit/Loss From Continuing 1,690.72 -99.99 2,139.70

Operations

Profit/Loss For The Period 1,690.72 -99.99 2,139.70

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 7 -0.4 8.92

Diluted EPS (Rs.) 7 -0.4 8.92
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
STORES, SPARES AND LOOSE
TOOLS

Imported Raw Materials 0 0 0

Indigenous Raw Materials 0 0 0

STORES, SPARES AND LOOSE

TOOLS
Imported Stores And Spares 0 0 0

Indigenous Stores And Spares 0 0 0

DIVIDEND AND DIVIDEND

PERCENTAGE

Equity Share Dividend 2,519.30 2,158.91 1,559.06

Tax On Dividend 0 0 0
Equity Dividend Rate (%) 1,150.00 1,000.00 750

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Cash flow statement of Sun pharmaceuticals Industry Ltd.

Cash Flow of Sun Pharmaceutical Mar-23 Mar-22 Mar-21

Industries (in Rs. Cr.)

Net Profit/Loss Before 9,408.43 4,481.32 2,799.37

Extraordinary Items And Tax

Net CashFlow From Operating 4,959.33 8,984.54 6,170.37

Activities
Net Cash Used In Investing -7,943.68 -5,724.74 536.22
Activities
Net Cash Used From Financing 2,376.07 -5,193.46 -5,980.48
Activities
Foreign Exchange Gains / Losses 157.07 127.43 -129.69

Adjustments On Amalgamation 566.69 41.45 0

Merger Demerger Others

Net Inc/Dec In Cash And Cash 115.48 -1,764.78 596.42

Equivalents
Cash And Cash Equivalents Begin 4,508.25 6,273.03 5,676.61
of Year

Cash And Cash Equivalents End Of 4,623.73 4,508.25 6,273.03

Year

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