financial statement analysis of hetero drugs- updated (1)

INTRODUCTION TO FINANCIAL STATEMENT ANALYSIS: The basis for the financial analysis of any firm is financial information. A business firm prepares its financial statements as they provide useful financial information and are helpful for the purpose of decision-making. Financial information is needed to predict, compare and evaluate the firms earning ability. The profit or loss statement shows the operating profit of the concern and the balance sheet depicts the balance value of acquired assets and liabilities at a particular time. For the purpose of obtaining the material and relevant information necessary for ascertaining the financial strengths and weakness to an enterprise, it is necessary to analyze the data depicted in the financial statement. The analysis is done by property establishing the relationship between the items of balance sheet and profit and loss account.

Financial statement analysis is a meaningful interpretation of financial statement for parties demanding financial information. There are certain steps, which to be taken into consideration for statement analysis:

1. Identification of users purpose. 2. Identification of source.

3. Selecting the techniques to be used for such analysis.MEANING AND CONCEPT OF FINANCIAL ANALYSIS:

The term financial analysis is also known as analysis and interpretation of financial statements refers to process of determining financial strengths and weakness of the firm by establishing strategic relationship between the items of the balance sheet ,profit and loss account and operative data. The purpose of financial analysis is to diagnose the information contained in the financial statements so as to judge the profitability and financial soundness of the firm. Financial statement analysis is an attempt to determine the significance and meaning of the financial statement analysis is an attempt to determine the significance and meaning of the financial statement data so that the forecast may be made of the future earnings, ability to pay interest and debt maturities and profitability of a sound dividend policy. The term financial statement analysis includes both analysis and interpretation. The term analysis is used to mean the simplification of financial data by methodical classification of the data given in financial statements, interpretation means explaining the meaning the meaning and significance of the data so simplified. However, both analysis and interpretation without analysis is difficult or even impossible.RESEARCH PROBLEM

Public limited for a company of the size of Hetero financial analysis becomes very important to sustain the leadership position, to gain the confidence of the share holders. OBJECTIVES OF THE STUDY

The main aim of the study is to analyze the financial performance of HETERO DRUGS LIMITED. To review and growth working of HETERO DRUGS LIMITED during 6 years. To evaluate the financial analysis of its business operations. Internal external factors that influence HETERO DRUGS LIMITED. Management approach towards HETERO DRUGS LIMITEDSCOPE OF THE STUDY The scope of study is limited to collecting data published in annual reports of the company with reference to the objectives stated above and an analysis of data with a view to understand the solutions by solutions by applying various ratios relating to balance sheets.NEED FOR THE STUDYTo understand the existing position of company relating to its financial position and to know what are the factors that result an organization yield profit and loss..

METHODOLOGY The study is based on primary as well as secondary data.

The primary data was gathered through personal interaction with various Functional heads and technical personal.

The secondary data was collected from companys annual reports from 2008-2013. Various books, News papers and Internet.LIMITATIONS As adequate data was not able to pool because of the secrecy maintained by the firm, proper justification for the project was not done.1. The study is limited to the financial analysis of HETERO DRUGS LIMITED.

2. The study is confined to the figures available on paper and no physical verification has been done.REVIEW OF LITERATURE

Financial Statement Analysis:Method used by interested parties such as investors, creditors, and management to evaluate the past, current, and projected conditions and performance of the firm. Ratio analysis is the most common form of financial analysis.

It provides relative measures of the firm's conditions and performance. Horizontal Analysis and Vertical Analysis are also popular forms. Horizontal analysis is used to evaluate the trend in the accounts over the years, while vertical analysis, also called a Common Size Financial Statement discloses the internal structure of the firm. It indicates the existing relationship between sales and each income statement account.

It shows the mix of assets that produce income and the mix of the sources of capital, whether by current or long-term debt or by equity funding. When using the financial ratios, a financial analyst makes two types of comparisons:

Financial statement analysis is the process of examining relationships among financial statement elements and making comparisons with relevant information.

It is a valuable tool used by investors and creditors, financial analysts, and others in their decision-making processes related to stocks, bonds, and other financial instruments.

The goal in analyzing financial statements is to assess past performance and current financial position and to make predictions about the future performance of a company.

Investors who buy stock are primarily interested in a company's profitability and their prospects for earning a return on their investment by receiving dividends and/or increasing the market value of their stock holdings.Creditors and investors who buy debt securities, such as bonds, are more interested in liquidity and solvency: the company's short-and long-run ability to pay its debts.

Financial analysts, who frequently specialize in following certain industries, routinely assess the profitability, liquidity, and solvency of companies in order to make recommendations about the purchase or sale of securities, such as stocks and bonds.

Analysts can obtain useful information by comparing a company's most recent financial statements with its results in previous years and with the

Results of other companies in the same industry. Three primary types of financial statement analysis are commonly known as horizontal analysis, vertical analysis, and ratio analysis.METHODS OF FINANCIAL STATEMENT ANALYSIS:

The following methods of analysis are generally used:

1. COMPARATIVE STATEMENTS.

2. COMMON SIZE STATEMENTS.

3. RATIO ANALYSIS. Financial statement refers to a set of report and schedules that an accountant prepares at the end of time for a business enterprise.

1. Comparative statement analysis: Comparative statement analysis refers to comparison of financial statement pertaining to two different periods by putting them side by-side and finding out the changes in absolute and relative changes.2. Common Size Statement analysis: Common size statement facilities comparison of financial statement not only of a single firm over a period of time, but also comparison of financial statement of different companied for any given time. Under, this method, all the items of the statement are presented as a percentage of a particular item. Therefore, even if the related absolute figures are in respect of vastly differently scale of operations, a common base for comparison is created. Increase of a common size income statement, all the items are presented as a percentage of new sales. A common size balance sheet shows each item as a percentage of total assets or total liabilities. A common size statement helps. In determining the relative efficiency and soundness of a firm in understanding its financial strategy.

3. Ratio Analysis: Ratio analysis is a very important tool of financial analysis. It is the process of establishing a significant relationship between the items of financial statements to provide a meaningful understanding of the performance and financial position of firm.RATIO ANALYSIS & INTERPRETATIONTYPES OF RATIOS:

1. LIQUIDITY RATIOS

2. SOLVENCY RATIOS

3. ACTIVITY RATIOS

4. PROFITABILITY RATIO1. LIQUIDITY RATIOS: These ratios measure the concerns ability to meet short-term obligations as and when they become due. These ratios show the short-term financial solvency of the concern. Usually the following two ratios are calculated for this purpose.1. Current Ratio and2. Quick Ratio

1. Current Ratio:

(a) Meaning: This ratio establishes a relationship between current assets and current liabilities.(b) Objective: The objective computing this ratio I to measure the ability of the firm to meet its short-term obligations and to reflect the short term financial strength /solvency of firm. In other words, the objective is to measure the safety margin available for short-term creditors which are as under:(I) CURRENT ASSETS: Which mean the assets which are held for their conversion in to cash within a year and include the following?Cash Balances

Bank Balances

Marketable Securities

Debtors(less provision)

Bills Receivable(less provision)

Stock of all types

Prepaid Expenses

Viz., Raw-Material,

Incomes accrued but not due

Work-in-progress,

Advance Payment of tax

Finished goods short-term loans and

Tax reduced at source

Advances (debit balances) income

Note: The Provision for bad and doubtful debts/bills is deducted from the total amount of trade debtors/bills receivables in order to ascertain the realize value of trade debtors/bills receivable.(ii) CURRENT LIABLITIES: Which mean the liabilities which are accepted to be matured within a year and include the following?Creditors for Goods

Creditors for Expenses

Bills Payable

Bank Overdraft

Short-term loans and Advances

Income received in-advance

Provision for tax

Unclaimed Dividend

(c) Computation: This ratio is computed by dividing the current assets by the current liabilities. This ration is usually expressed as a pure ratio e.g.2:1 in the form of a formula, this ratio may be expressed ads under.(d) Interpretation: It indicated rupees of quick assets available for each rupee of current liabilities. Traditionally, a quick ratio of 1:1 is considered to be a satisfactory ratio.(e) Precaution: While computing and using the quick ratio, it must be ensured, (I) that the quality of the receivable (debtors and bills receivable) has been carefully assessed and (ii) that all Quick assets and current liabilities have been properly valued.

2. SOLVENCY RATIOS: These ratios show the long-term financial solvency and measure the enterprises. Ability to pay the interest regularly and to repay the principles (i.e. capital amount) on maturity or in pre-determined installments at due dates. Usually, the following ratio is calculated to judge the financial solvency of the concern:

DEBT-EQUITY RATIO:

(a) Meaning: This ratio establishes a relationship between long-term debts and shareholders funds.(b) Objective: The objective of computing this ratio is to measure the relative proportion of debt and equity in financing the assets of a firm. (c) Components: There are two components of this ratio which are as under:(I) long term debts: Which mean long-term loans (whether secured or unsecured)

(ii) Shareholder funds: Which mean equity share capital plus preference share capital plus reserves and surplus minus fictitious assets (e.g., preliminary expenses?)

(d) Computation: This ratio is computed by dividing the long-term debts by the shareholders funds. This ratio is usually expressed as a pure ratio e.g., 2:1 .in the form of a formula, this ratio may be expressed as under:

Long term Debts

Debt-Equity Ratio = ------------------------

Shareholder Funds (e) Interpretation: It indicates the margin of safety to long-run creditors. A low debt equity ratio implies the use of more equity than debt which means a larger safety margin for creditors since owners equity it treated as a margin of safety by creditors and vice versa.1. ACTIVITY RATIOS: These ratios measure the effectiveness with which a firm uses its available resources. These ratios are also called Turnover Ratios since they indicate the speed with which the resources are being turned or converted into sales. Usually the following turnover ratios are calculated: Capital turnover Ratio

Fixed Assets Turnover Ratio

Net Working Capital Turnover Ratio

Stock Turnover Ratio

Debtors Turnover Ratio

Creditors Turnover Ratio

1. Capital Turnover Ratio:

(1) Meaning: This ratio establishes a relationship between net sales and capital employed.(2) Objective: The objectives of computing this ratio is determine the efficiency with which the employed is utilized(3) Components: There are two components of this ratio which Are as under: Net Sales which mean gross sales minus sales return.(ii) Capital Employed which means Long-term Debt plus Shareholders Funds.

(d) Computation: This ratio computed by dividing the net sales by the capital employed. This ratio is usually expressed as V number of times. In the form of a formula, this ratio may be expressed as under

Net Sales

Capital Turnover Ratio = --------------------

Capital Employed

(e) Interpretation: It indicates the firms ability to generate sales per rupees of capital employed. In general higher the ratio the more efficient the management and utilization of capitals employed.

2. Fixed Assets Turnover Ratio:

(a) Meaning: This ratio establishes a relationship between net sales and fixed assets.

(b) Objective: The objective of computing this ratio is to determine the efficiency with which the fixed assets are utilized.

(c) Components: There are two components of this ratio which are as under:(d) Computation: This ratio is computed by dividing the net sales by the net fixed assets. This ratio is usually express as X number of times. In the form of a formula, this ratio may be

Expressed as under

Net Sales fixed Asset Turnover Ratio = ----------------------------------

Net Fixed Assets (e) Interpretation: It indicates the firms ability to generate sales per rupee of investment in fixed assets. In general, higher the ratios, the more efficient the management and utilization of fixed assets, and vice versa, may be noted that there is no direct relationship between sales are influenced by other factor.3. Net Working Capital Turnover Ratio:

(a) Meaning: This ratio establishes a relationship between net sales and working capital.(b) Objective: The objective of computing of this ratio is to determine the efficiency with which the working capital is utilized.(c) Components: There are two components of this ratio which are as under a. Net sales which means gross sales minus sales returns

b. Working capital which means current assets minus current liabilities

(d) Computation: This ratio is computed by dividing the cost of goods sold by the average inventory. This ratio is usually expressed as X number of times. In the formula, this ratio may be expressed as under:

Net Sales

Working Capital Turnover Ratio = --------------------

Working Capital(4) Indicates: The firms ability to generate sales per rupee of working capital. In general, higher the ratio, the more efficient the management and utilization of working capital and vice versa.

4. Stock Turnover Ratio:

(a) Meaning: This ratio establishes a relationship between costs of goods sold and average inventory.

(b) Objective: The objective of computing this ratio is to be determining effectively with which the inventory is utilized.(c) Components: There are two components of this ratio which area as under:(i) Cost of goods sold which is calculated as under.

Cost of goods Sold = Opening Inventory + Net Purchaser + direct Expenses -Closing Inventory

(ii) Average inventory which is calculated as under :

Opening Stock + Closing Inventory

Average Inventory = -----------------------------------------------

2

(d) Computation: This ratio is computed by dividing the cost of goods sold by the average inventory. This ratio is usually expressed as X number of times. In the form of a formula, this ratio may be expressed as under:

Cost of goods sold

Stock Turnover Ratio =------------------------

Average Inventory

(e) Interpretation: This speed with which the inventory is converted sales. In general, a high ratio indicates efficient performance since an improvement in the ratio shows that either the same volume of sales has been maintained without any increases in the amount of stocks. (f) Stock Velocity: This velocity indicates the period for which sales can be generated with the of an average stock maintained and is usually expressed in days. This velocity may be calculated as follows:

12 months /52weeks/365weeks

Stock Velocity = -------------------------------------------

Stock Turnover Ratio5. Debtors Turnover Ratio (Or) Receivables Turnover Ratio (a) Objective: The objective of computing this ratio is to determine the efficiency with which the trade debtors are managed. (c) Components: There are two components of this ratio which Areas under; Net Credit Sales which means gross credit sales minus sales return; and

Average trade debtors (including bills receivables ) which are calculating as under

Opening Trade Debtors + Closing Trade Debtors

Average Trade Debtors = -------------------------------------------------------------

2

(d) Computation: This ratio is computed by dividing the net credit sales by average trade debtors. This ratio is usually expressed as V number of times. In the form of a formula, this ratio may be expressed as under

Net Credit

Debtors Turnover Ratio =----------------------------

Average Trade Ratio

(e) Interpretation: It indicates the speed with which the debtors turnover on an average each year. In general, a high ratio indicates the shorter collection period which implies prompt payments by debtors, and a low ratio indicates a longer collection period which implies delayed payment by debtors. (f) Debt Collection Period (Or) Debtors Velocity:

This period shows an average period for which the credit sales remain outstanding and measures the quality of debtors. It indicates the rapidly or slowness with which the money is collected from debtors. This period nay is calculated as under;

12months /52weeks/635weeks

Debts Collection period = ---------------------------------------

Debtors Turnover Ratio6. Creditors Turnover Ratio (Or) payments Turnover Ratio:

(a) Meaning: This ratio establishes a relationship between net credit purchases and average trade creditors.(b) Objective: The objective of comparing of computing this ratio is determined the efficiency with the creditors are managed.(c) Components: There are two components of this ratio which are as under;a) Net Credit Purchases which mean gross credit purchases minus purchases return; and

b) Average Trade Creditors ( Including bills payable ) which are calculated as under;

c) Average Trade Creditors =

Opening Trade Creditors + Closing Trade Creditors

------------------------------------------------------------------

2

(d) Computation: This ratio is computed by dividing the net credit purchases by average trade creditors. This ratio is usually expressed as X number of times. In the form of formula, this may be expressed as under;

Net Credit Purchases

Creditors Turnover Ratio = --------------------------------

Average Trade Creditors

(e) Interpretation: It indicates the speed with which the creditors turn over on an average each year. In general, a high ratio indicates the shorter payment period which implies both the availability of less credit or earlier payment period which implies either the availability or more credit or delayed payments4. PROFITABILITY RATIOS: This ratio measures managements overall effectiveness as shown by the returns generated on sales and investment. Usually tow type of profitability ratio are calculated as i. In relation to Sales

ii. In relation to investment

(A) PROFITABILITY RATIOS IN RELATION TO SALES

1 Gross Profit Ratio

(a) Meaning: This ratio measures the relationship between gross profit and net sales.

(b) Objective: The main objective of computing of this ratio is to determine the efficiency with production And / or purchase operations are carried.(c) Components: These are two components of this ratio which are as under;

1) Gross Profit

This is the excess of net sales over cost of goods sold.

Cost of Goods Sold is calculated as under1. In the case of a trading concern

Rs.

Opening Stock

Add : Net Purchases

Add : Direct Expenses (e.g.Carrige inward)

Less : Closing Stock

Cost Good Sold (A+B+C-D) XXX

XXX

XXX

XXX XXX

2. In the case of manufacturing concern

Rs.

1) Opening Stock of Finished Goods

2) Add :Cost of Good Produced (Material Consumed+Labor+OtherManufacturing Expenses )

3) Less : Closing Stock of finished Goods

4) Cost of Goods Sold (A+B-C) XXX

XXX

XXX

XXX

XXX

(ii) Net Sales: This is Gross Sales (Both Cash and Credit) minus Sales Returns(d) Computation: This ratio is computed by dividing the gross profit by the net sales. It is expressed as percentage. In the form of a formula, this ratio may be expressed as under.

Gross Profit

Gross Profit Ratio = ------------------ X 100

Net Sales

(e) Interpretation: This ratio indicates (a) an average margin earned on a sales of Rs.100,(b) the limit beyond which the fall in sales prices will definitely result in losses, and (c) what portion of sales is left to cover operating expenses (other than the cost of goods sold ) and non-operating expenses. (I) Higher Sales Prices with constant cost of Goods Sold;

(ii) Lower cost of Goods Sold with constant Sales Prices;

(iii) A Combination of aforesaid two factors.2. Operating Profit Ratio

(a) Meaning: This ratio measures the relationship between operating profit and net sales. (b) Objective: The main objective of computing this ratio which are as under: (I) Operating Profit: This is the excess of Gross Profit Over other operating Expenses (e.g. Office and Administrative Expenses, Selling and distribution Expenses, Discount, Bad debts, Interest on short-term debts) and 2) Net Sales :This means Gross Sales (Both Cash and Credit) minus Sales Returns

(c) Computation: This ratio is computed by dividing the operation profit by the net sales. It is expressed as a percentage. In the form of a formula, this ratio may be expressed as under.

Operating Profit

Operating Profit Ratio =----------------------

Net Sales

(e) Interpretation: This ratio indicates (a) an average operating margin earned on a sales of ars.100 and (b) what portion of sales is left to cover non-operating expenses, to pay dividend and to create reserves. Higher the ratio, the more efficient is the operating management. This ratio may increases due to any one of the following factors:a. Higher Gross Profit ;

b. Lower Operating Expenses;

c. A combination of aforesaid two Factors.3. Net Profit Ratio

(a) Meaning: This ratio measures the relationship between but profit and net sales.(b) Objective: The main objective of computing this ratio is determining the overall profitability due to various factors such as operational efficiency, trading on equity etc.(c) Components: There are two components of this ratio which are as under: Net Profit

Net Sales

(d) Computation: This ratio is computed by dividing the Net profit by the net sales. It is expressed as a percentage. In the form of a formula, this ratio may be expressed as under. (e) Interpretation: This ratio indicates An average net margin earned on a sales of Rs.100

What portion of sales is left to pay dividend and to creative reserves, and

Firms capacity to with stand adverse economic conditions when selling price is declining, cost of production is rising and the demand for the product is falling. Higher the ratio, grater is the capacity of the firm to withstand adverse economic condition and vice versa.

4. Operating Ratio

Meaning: This ratio measures the relationship between operating cost and net sales.(b) Objective: The main objective if computing this ratio is to determine the operational efficiency with which production and/or and selling operations are carried on. (c) Components: There are two components of this ratio which are as under:(l) Operating cost which comprise (a) Cost of Goods Sold and (b) other Operating Expenses (e.g., Administrative Expenses, Selling and Distribution Expenses, interest on short-term loans, Discount allowed and Bad Debts) (All) Net Sales which means gross sales minus sales returns.

(d) Computation: This ratio is computed by dividing the operation cost by the net sales. This ratio is expressed as a percentage. In the form of a formula, this ratio may be expressed as under.

Operating Cost

Operating Ratio =------------------------ X 100

Net Sales (e) Interpretation: This ratio indicates an average operating cost incurred on a sales of goods Rs.100. Lower the ratio, greater is the operating profit to cover the non-operating expense, to pay dividend and to are preserves and vice versa.

(B) PROFITABILITY RATIOS IN RELATION TO INVESTMENT Since the term investment may refer to Total Assets. Capital Employed or Shareholders funds, the return of Investment (ROI) can be calculated in any one of the following ways :

1. Return on Shareholder funds (Or) Return on Equity:

(a) Meaning: This ratio measures a relationship between net profit after interest, and tax, and shareholders funds.

(b) Objective: The objective of computing this ratio to find out how efficiency the funds supplied by the equity shareholders have been used.(c) Components: There are two components of this ratio as under: Net Profit after interested and Tax;

Shareholder share funds which mean equity share capital plus preference share capital plus Reserves and Surplus minus Fictitious Assets (If any).

(d) Computation: This ratio is computed by dividing the net profit after interest and tax by shareholder funds. It is expressed as a percentage. In the form of a formula, this ratio may be expressed as under:

Net Profit after interest and tax

Return on Shareholder Funds = ----------------------------------------- X 100

Shareholder Fund

(e) Interpretation: This ratio indicates the firms ability of generating profit per rupee of shareholder finds. Higher the ratio, the more efficiency the management and utilized of shareholder funds.

2. Earnings per Share (EPS)

(a) Meaning: This ratio measures the earning available to an equity shareholder on a per share basis.

(b) Objective: The objective of computing this ratio is to measure the profitability of the firm on per equity share basis.(c) Components: There are two components of this which are as under:I. Net Profit after interest ,Tax and Preference dividend

II. Number of equity Shares

(d) Computation: This ratio is by dividend by dividing the net profit after interest, tax and preference dividend by the number of equity shares. It is expressed as an absolute figure. In the form of a formula, this ratio may be expressed as under:

Net Profit after interest, Tax and preference Dividend

Earnings per Share = -----------------------------------------------------------------

Number of Equity Shares.

(e) Interpretation: In general, higher the figure, better it is and vice versa. While interpreting this ratio, it must be seen whether there is any increases in equity shareholders Funds as a result of retained earnings without any change in number of outstanding shares.

(3) Proprietary Ratio

(a) Meaning: This ratio measures a relationship between proprietors Fund and the Total Assets.(b) Objective: The objective of computing this ratio is finding out how the proprietors have financial the assets(c) Components: There are two components of this ratio which are as under: i. Proprietors Funds (excluding fictitious assets like preliminary exp)

ii. Total Assets (d) Computation: This ratio is computed by dividing the Proprietors Fund by Assets. It is expressed in percentage. In this form of a formula, this ratio may be expressed as under:

Property Ratio

Property Ratio = ------------------------- X 100

Total AssetsNote: Proprietors Funds means Shareholders Funds.

(5) Interpretation: This ratio indicates the extent to which the assets of the firm have been financed out of Proprietors Funds.

INDUSTRY PROFILE

INTRODUCTION TO BULK DRUG INDUSTRY: Since the achievement of independence, India pharmaceutical industry registered a substantial progress and has become one of the countrys leading industries. India is now providing large quantities of varied bulk drugs and pharmaceutical products of late. Especially during 80s India acquired a status of one of the major exports of drugs and pharmaceutical in the international market.

Prior to the launching of second five year plans, the manufacture of pharmaceuticals was limited largely to processing to bulk-imported drugs into tablets, Capsules and other formalities. Later the Indian manufacturer were encouraged to make up the manufacture of basic drugs wherever it is economically possible and technically feasible, resulting in the growth of bulk drugs industry and leading to self sufficiency in the production of these raw material s called as bulk drugs. The number of bulk drugs and pharmaceutical chemicals manufactured in the country by the Indian change in the pattern of production; the industry has now emerged as an exporter of basic chemicals, intermediaries and finished production. Thus bulk drugs are poised to become the new start in the export firmament.

Pharmaceuticals are medicinally effective chemicals, which are converted to dosage forms suitable for patients to imbibe. In it basic chemical from, pharmaceuticals are called bulk drugs and the final dosage forms are known as formulations. Usage of pharmaceuticals is governed by the underlying medical science. The four primary medical sconces are as under:

Allopathic or modern medicine has gained global popularity. Ayurveda, an ancient Indian science, mainly uses herbal remedies. Unani having Chinese Origin is prevalent in South East Asia.

Homeopathy, founded by a German Physician, was fairly popular in the early 19th century.

RESEARCH DRIVEN INDUSTRY:

Pharmaceutical industry is driven by a global need to conquer disease. Medicines are developed to treat new diseases or improve upon the existing treatment. An in-depth understanding of human physiology and disease mechanism is a pre-requisite to pharmacy R&D. to facilitate research, companies usually concentrate on select therapeutic areas such as anti-ulcer, anti-cancer etc., major diseases for which new drugs are continuously being researched

Globally are AIDS, Alzheimers disease, arthritis (rheumatics), cancer, depression, diabetes, heart disease, osteoporosis and stock. Basic Vs process R&D basic research deals with discovery / invention of new medicinally effective chemical. Process R&D is basically reverse engineering of a molecule through slight process modifications. Basic research is both time and cost intensive. Hundred of molecules need to be analyzed to determine possible effectiveness. Following such laboratory testing, actual clinical trials are then carried out to determine the drugs efficiency on patents. The process this requires around 12-15 years and cost us $ 350-400 mm per new chemical entity (NCE). Process R&D is far easier and costs are negligible compared to basic research.

MANUFACTURING PROCESS:

Bulk drugs prepared by appropriate chemical reactions of natural/ synthetic intermediaries under controlled conditions. Formulations manufacture is a branch mixing process. Right dosage of bulk drug (active ingredient) is compounded with compatible substances, to make the formulations palatable. Packed as per the physical from-bottle (for liquid), blister strips (for tablets / capsules) or ampoules (for powers), each formulation pack has the expiry date and storage instructions printed on it. Stringent quality control is exercised at all stage of Therapeutic segments.For ease of prescription, bulk drugs and their formulations are classified as per there and use i.e. therapeutic effectiveness against particular disease or ailment. For e.g. Medical are categorized as anti-tuberculosis etc, the major therapeutic categories and the key drugs there in are detailed wise-later.

BENEFIT TO MANKIND:

Between 1920 and 1960, the death rate, due to disease, in a year fell from 12,120 noses per million people to 8,800 no permission persons. Every 4 years since 1965, one additional year has added to life expectancy at birth due to advances in pharmacy R&D. Presently in USA, the average life expectancy is over 75 years. As antibiotics enabled people to survive more advanced ages, researches focused on call biochemistry to fine cures for more complex chronic diseases: Drug researches are now targeting to cure the underlying causes of diseases that are rooted in human molecular structure.

GROWTH:

Pharmaceutical is a continuous growth industry, immune to economic recession and commodity cycle, rising populations, new disease incidence or resurgence of certain diseases spurs that growth. Therapeutic usage of pharmaceuticals varies across the globe.Hypertention and cardiac diseases like typhoid, tuberculosis etc., are largely prevented in developing nations.INDUSTRY SIZE:

The global pharmaceutical industry, presently valued as US $ 305 bin, is projected to grow at a CAGR of 8% pa in the next 5 years. In 1998 market grew by 7% as against 6.6% in the previous years. Growth rate differ across nations, with the developing nations like South Korea, Taiwan, India etc., nothing high growth in range of 12-15% pa. This can be attributed to healthcare cost

containment pressure keeping pharmaceutical prices low like developed countries, while export opportunities and low domestic per capita consumption have provide higher growth potential in the developing nations.

INDIAN SCENARIO: Drawbacks:In the 50 years independence, the Indian pharmaceutical industry has evolved significantly. Initially, the MNCS had a near monopoly. They imported and marketed formulations in India, mainly low cost generics for the mosses and also few specialties, life saving, high priced products. With the government increasing pressure against imports of finished products. The MNCs setup formulations units and continued importing the bulk drugs. In the 60s the Indian government laid the foundation of the domestics pharmaceutical industry by promoting Hindustan Antibiotics Ltd., (HAL) and Indian drugs.Hpowever, MNCs maintain a lead due to backing of their global R&D. High costs for basic research deterred local players (in the private sector).

PRESENT SCENARIO: Over 20,000 registered pharmaceutical manufacturers exist in the country. The market share of MNCs has fallen from 75% in1971 to around 35% in the Indian pharmaceutical market, While the share of Indian companies. Have increased from 20% in 1971 to nearly 65%.pusses have almost lost completely.

The secret has undergone several policy as well as attitudinal changes over the past two year. It was the one of the major beneficiaries from the budget proposals. Some of the positive steps taken were.

Pharmaceutical industry as knowledge based industry. The government has plans to increase the investment in research and Development. Rationalization of excise duty and reduction in interest rates in export financing.

Foreign direct investments permit up to 74% through automatic route. Additional deductions under income tax laws for R&D expense. Setting up to high-level comities to review drug policy for strengthening Red capabilities, reducing the price control regime.

Beside the Indian parliament has enacted the required changes in the Indian Patent Act 1790 (IPR) regarding mailbox arrangements and Exclusive Marketing Right (EMR).For while the main Pharmacy companies have a recorded a measure of 1.4% increase in sales and 7.4% fall in profits, the Indian pharmacy have companies have recorded a21% growth in sales companies has decreased frtom1.8% if sales to 1.6% in case of MNC Pharmacy companies has increased 3.8 to 4.4%.So while the MNC companies did not make many new launches (make a hue & cry about increasing competition from the generics, delay in patent regime, unfavorable price cuts). But the Indian companies too, everything in stride and went out all cylinders firing-launching new products, entering generics market, recognizing the marketing structure, focusing on growth segments like cardiac, and psychiatry among a host of other initiatives. Indian pharmaceutical exports, among the top three contributors to the world pharmacy trade, are poised to grow 3.25% this year to torch $ 1.5 billion, according to CII estimates.

The country is potential to rank among top three tins the world has suppliers of the generic drugs by 2010, of the government paves why for creating a conductive business environment by framing new policies for the sector, said ran boxy chief executive officer D.S. Barr.

SWOT ANALYSIS FOR THE INDIAN PHARMA INDUSTRY: STRENGTHS: Cost competitiveness Well-developed industry with strong manufacturing base

Well Established network of laboratories and R&D infrastructure.

Across to pool of highly trained scientists, both in India and abroad.

Strong marketing and distribution network.

Rich Bio-Diversity.

Competencies in chemistry and process developments.

WEAKNESS: Low investments in innovative R&D.

Lack of resources to complete with other MNCs for new Drug Discovery research and commercializes molecules on the world wide basis.

Lack of strong linkages between industry and academia.

Lack of culture of innovation in industry.

Inadequate regularity standards.

Production of spurious and low quality drugstarnishesthe image of the industry at home.

And abroad.OPPORTUNITIES:Significant export potential

Licensing deals with MNCs for NECs and NDDs.

Marketing alliances to sell arrangements with MNCs.

Contract manufacturing India as a center for international clinical trials.

Niche player in global pharmaceutical R&D.THREATS:Product patent regime poses a serious challenge to domestic industry unless it invests in research and development.

R&D efforts of India pharmaceutical companies hampered by lack of enabling regulatory requirement.

Drug price control of India pharmaceutical companies from generating inevitable surplus.

Export effort by procedural hurdles in India as well as non-tariff barriers imposed abroad.

Lowering of tariff protection.

COMPANY PROFILEPharmaceutical Industry in India has risen leaps and bounds in the past two decades. During the early 80s multinational companies ruled the Industry; whereas the large Indian companies have taken the leadership position. Now one such company of Indian origin is Hetero drugs BRIEF HISTORY OF THE COMPANY: April, 1993, saw the rise of a new organization, Hetero Drugs under the stewardship of Dr. Parthasarathi Reddy, a technocrat with a vast experience in the field of research and development for designing the processes with a team of highly component professionals with expertise in their respective fields of operation.

Established in the year 1993, with the motto to be the best in the API manufacture, hetero today embodies the vision of a top notch player in developing and commercializing products catering to a variety of the therapeutic categories, integrating into a leading finished dosage manufacture.

With full-fledged marketing capabilities, the company has been able to market its products in over 80 countries in Asia, Middle-east, Eastern Europe and Latin America. With its compliance to the most stringent regulatory requirements, Hetero has today gained foothold to market several of its APIs in the United States, Canada, and Europe.

MANAGEMENT:The member of the Board of Directors of the company.Name Designation:1. Dr. Parthasarathi Reddy Chairman & Managing Director2. B. Nagi Reddy Executive Director3. M. Pera Reddy Director - Finance

4. A.V. Narsa Reddy Director - Corp. Tech5. C. Bhaskara Reddy Director - Quality control6. J. Sambi Reddy Director -Production 7. M. Srinivasa Reddy Director

8. B. Vamshi Krishna

DirectorCompany Secretary: C. Gopala Krishna

HETEROS MANUFACTURING FACILITIES The company is having manufacturing facilities in and around Andhra Pradesh. Hetero has expanded its manufacturing facilities to cater to the growing demand for the active pharmaceutical ingredients of a wide range of therapeutic categories. VISION AND VALUES: Hetero visualizes itself as an aggressive player in the global pharmaceutical scenario, supplying gentries developed, combining intellectual property, research strengths and strong human resource inputs.

The company values the concepts of having social responsibilities in the course of its assent to greater heights. It strongly believes in focusing on customer requirements and delivering the products at the right pace.

Heteroconsiders its human resources as the core of all its capabilities and believes in tapping and honing the talents of its members to reach the zenith of successIt believes in continuous evaluation and improvement in all the factors that contribute in transforming the organization into a global force to reckon with.

Hetero takes due cognizance to the fact that the processes that it develops should be all eco-friendly and should not result in any consequence that harms the ecological harmony. MISSION: Heteros Mission is to be globally acclaimed pharmaceutical company, Meeting the requirements of Healthcare imbibing the philosophy of the both commercial and social concerns, driven by research and manufacturing capabilities.QUALITY SYSTEM / POLICIES: Manufacture and marketing of pharmaceutical products following an integrated of quality systems meeting the customer and regulatory requirements to ensure quality, safety and efficacy of the product.Striving for excellence through continuous upgrading of the resources and facilities to meet the ever changing demands with respect to the technologies and systems, aiming at, continuous quality improvement and customer satisfaction giving the consideration for the protection of the environment. The approval of Heteros APIfaculty by USRDA and finished dosage faculty by WHO bear a testimony to this fact. Providing training, safe working environment and opportunities for all its employees to grow along with the organization and striving for the better course of society.HETERO RESEARCH FOUDATION:

Heteros emphasis has always been on research and development .The emphasis was to ensure that processes been g adapted for the products are cost effectives, safe to handle and with optimum advantage in terms of yield and quality. Having laid solid foundation towards the end heteros R&D approach has also taken cognizance of the present scenario where stringent has been and is involved in developing non-infringing processes for its products. With its ability to explore high and achieve the best, hetero has been able to file patents for several of its processes.From an organization, which was concentrating on developing processes for APIs hetero, has now a full- fledge R&D facility for formulation development.

Hetero research capabilities have been proven with its ability to carry out a wide range of reaction, which are difficult to carry out. Given its research capabilities hetero has today has initiated contract research. Towards the end, the company has already evolved its strategies and is into discussions with renowned companies for carrying out the contract research. Custom synthesis is one area where the company has been concentrating on and has initiation work on several projects.

In addition to the above, the company is now on the threshold of commencing basic research activities to develop and screening new chemical entities for different therapeutic categories.

HETEROS STRENGTH: Strong Emphasis on research and development

Ability to orient and adapt to the changing facets of industry, particularly in terms of regulations, intellectual property and manufacturing capabilities.

Cohesive team fog skilled professionals in all wings related to research, manufacture and marketing.

Strong customer base and market presence

Strong commitment towards the society to provide timely support by providing life saving drugs at relatively low cost, short span of time.CAREERS: Hetero considers its human recourse as its core strengths. The company believes in the fact that its present position has on aggressive layer can be attributed to the efforts on art of ail employees working in different departments in realizing its goal of being a top-Notch company.

The company offers the best of the opportunities to work, where the potential and capabilities of personnel. The latent talents are boned to meet the challenges faced by the organization and achieve the best.

Hetero believes in recognizing and rewarding contributions of its employees. To meet its staff requirements, hetero has several openings in different departments for those who are ready to take up the challenge and deliver the go HETERO RECOGNITION AND AWARDS:The efforts of hetero towards achieving the recognition as an organization to reckon with in the pharmacy sector have yielded fruits, crossing numerous mile stones, in its journey to success. To name a few Hereto was awarded the National Award for the best efforts in Research and Development by the department of scientific and industrial research, ministry of science and technology, Government of India.

QUALITY ACCRIDITIONS Quality of products and organization as a whole.

Quality systems in every department R&D to marketing.

ISO 9002 certification for manufacture and marketing of APIs.

CGMP and WHO certification for the APIs.

USFDA approved manufacturing facility.

Corporation Analytical Research Wing for establishing in house specifications.

DATA ANYLYSIS &PRESENTATION

BALANCE SHEET OF HETERO DRUGS LTD. FOR THE YEAR ENDING 31ST MARCH 2009-10PARTICULARS31-03-2009PERCENTAGE OF CHANGE31-03-2010PERCENTAGE OF CHANGE

SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital345000002.10345000002.36

Reserves & Surplus82696143750.4576878399552.63

LOAN FUNDS

Secured loans55599145933.9160993305141.76

Unsecured loans1239795737.56473246723.24

DIFERRED TAX LIABILITY(Net)977124155.96NILL0

TOTAL16391448841001460541718100

APPLICATION OF FUNDS

FIXED ASSETS

Gross Block62442712638.0954165083737.08

Less: Depreciation994405696.06730068044.99

Net Block52498655732.0246864403332.08

INVESTMENTS16810119110.25549886543.76

CURRENT ASSETS LOANS & ADVANCESS

Inventories57842526935.2850817955934.79

Sundry Debtors64816757139.5476664761852.49

Cash & Bank Balances19515680.11217281351.48

Loans & Advances1180815707.207999374385.47

TOTAL 136419003883.25137649275094.24

Less: Current Liabilities & Provisions

Current liabilities39115125023.8641062383128.11

Provisions270056561.64290000001.98

NET CURRENT ASSETS94603313257.7193686891964.14

MISCLLANEOUS EXPENDITURE240040.001101120.002

TOTAL 16391448841001460541718100

INTERPRETATION:

1.An analysis of current assets of both the years shows the percentage of current assets to that of total assets is 83% in the year 2009 and reduced to 94% in the year 2010 and in the both the years the company is having adequate working capital. The percentage of current liabilities is less than that both current assets of the both years, the inventories share greater value in current assets.

2. An analysis of current liabilities to that of share holders funds shows that the percentage of debt is less than the equity that is good sign i.e., the companys solvency is sound. To run the company it has to depend on working capital. That is the most of working capital procurement has been done from the topic earned and reserves maintained by the company.

3. Companies reserve capacity is very good. All the fixed assets are well utilized and investments are made regularly.


SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital345000002.36345000002.10


LOAN FUNDS

Secured loans60993305141.7655599145933.91

Unsecured loans473246723.241239795737.56

DIFFERED TAX LIABILITY(Net)NILL97711241155.96

TOTAL14605417181001541432469100


FIXED ASSETS

Gross Block54165083737.0862442712638.09


Net Block46864403332.0852498655732.02

INVESTMENTS549886543.7616810119110.25


Inventories50817955934.7957842526935.28

Sundry Debtors76664761852.4964816757139.54


Loans & Advances7999374385.471180815707.20

TOTAL137649275094.24136419003883.22



Provisions290000001.98270056561.64


MISSCLLANEOUS EXPENDITURE101120.002240040.001

TOTAL1460541718100154432469100

INTERPRETATION:

1.An analysis of current assets of both the years shows rhea percentage of current assets to that of total assets is 94% in the year 2010 and reduced to 83% in the year 2011 and in the both the years the company is having adequate working capital. The percentage of current liabilities is less than that both current assets of the both years, the inventories share greater value in current assets.




SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital345000002.10710000003.30


LOAN FUNDS

Secured loans55599145933.9186810603840.3

Unsecured loans1239795737.56515845092.39

DIFERRED TAX LIABILITY(Net)977124155.961227721265.7

TOTAL16391448841002149671445100

APPLICATION OFFUNDS

FIXED ASSETS

Gross Block62442712638.0979701130437.07


Net Block52498655732.0266661064431.00

INVESTMENTS16810119110.25524972622.44


Inventories57842526935.2871497824233.25

Sundry Debtors64816757139.54102462982747.66


Loans & Advances1180815707.201896415708.80

TOTAL136419003883.22194344623990.40



Provisions270056561.64715215703.32



TOTAL16391448841002149671445100

INTERPRETATION:


2. An analysis of current liabilities to that of share holders funds shows that the percentage of Debt is less than the equity that is good sign i.e., the companys solvency is sound. To run the company it has to depend on working capital. That is the most of working capital procurement has been done from the topic earned and reserves maintained by the company.



SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital710000003.30345000001.17


LOAN FUNDS

Secured loans86810603840.3128009149743.59

Unsecured loans515845092.39481197211.63


TOTAL21496714451002936157785100

APPLICATION OFFUNDS

FIXED ASSETS

Gross Block79701130437.07125254321442.65


Net Block66661064431.00105651702035.9

INVESTMENTS524972622.441715668825.84


Inventories71497824233.2594410912532.15

Sundry Debtors102462982747.66107453482436.59


Loans & Advances1896415708.8035019176311.92

TOTAL 194344623990.40246598944083.98



Provisions715215703.321100809533.74



TOTAL 2149671445 100 2936157785100

INTERPRETATION:



3. Companys reserve capacity is very good. All the fixed assets are well utilized and investments are made regularly. BALANCE SHEET OF HETERO DRUGS LTD. FOR THE YEAR ENDING 31ST MARCH 2013-14PARTICULARS31-03-2013PERCENTAGE OF CHANGE31-03-2014PERCENTAGE OF CHANGE

SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital345000001.17345000000.79


LOAN FUNDS

Secured loans128009149743.59179224902741.55

Unsecured loans481197211.63445880011.03


TOTAL29361577851004312622821100


FIXED ASSETS

Gross Block125254321442.65178507941541.39


Net Block105651702035.9152884174235.45

INVESTMENTS1715668825.842393393985.54


Inventories94410912532.15119919129127.80

Sundry Debtors107453482436.59223150117051074


Loans & Advances35019176311.9257451594813.32

TOTAL246598944083.98407776990594.55



Provisions1100809533.741270809532.94



TOTAL29361577851004312622821100

INTERPRETATION:

1. An analysis of current assets of both the years shows the percentage of current assets to that of total assets is 83% in the year 2013 and reduced to 94% in the year 2014 and in the both the years the company is having adequate working capital. The percentage of current liabilities is less than that both current assets of the both years, the inventories share greater value in current assets.


3. Companys reserve capacity is very good. All the fixed assets are well utilized and investments are made regularly.

BALANCE SHEET OF HETERO DRUGS LTD. FOR THE YEAR ENDING 31ST MARCH 2010-14PARTICULARS31-03-201031-03-201131-03-201231-03-201331-03-2014

SOURCESOFFUNDS

SHAREHOLDER FUNDS

Share capital3450000034500000710000003450000034500000

Reserves & Surplus7687839958269614371036208772144007300452238083518

LOAN FUNDS

Secured loans60993305155599145986810603812800914971792249027

Unsecured loans47324672123979573515845094811972144588001

DIFERRED TAX LIABILITY(Net)NILL97712415122772126172716522203202275

TOTAL14605417181639144884214967144529361577854312622821


FIXED ASSETS

Gross Block54165083762442712679701130412525432141785079415

Less: Depreciation73006804994405691304006601960261894256237673

Net Block46864403352498655766661064410565170201528841742

INVESTMENTS5498865416810119152497262171566882239339398

CURRENTASSETS LOANS &ADVANCESS

Inventories5081795595784252697149782429441091251199191291

Sundry Debtors766647618648167571102462982710745348242231501170

Cash & Bank Balances2172813519515628144965999715372872561496

Loans & Advances799937438118081570189641570350191763574515948

TOTAL13764927501364190038194344623924659894404077769905

Less: Current Liabilities &Provisions

Current liabilities4106238316911512506013693256480911671419396130

Provisions290000002700565671521570110080953127080953

NETCURRENTASSETS936868919946033132127055534317078173202531292822

MISCLLANEOUS EXPENDITURE1011224004789625656313148859

TOTAL14605417181639144884214967144529361577854312622821

BALANCE SHEET SHOWING TRENDS IS PERCENTAGES OF HETERO DRUGS LTD. FOR THE YEAR ENDING 31ST MARCH 2010-14PARTICULARS31-03-201031-03-201131-03-201231-03-201331-03-2014

SOURCES OF FUNDS

SHAREHOLDERFUNDS

Share capital100100205.79100100

Reserves & Surplus100107.56134.78182.2291.12

LOAN FUNDS

Secured loans10091.16142.32209.87293.84

Unsecured loans100261.98109101.6894.21

DIFERRED TAX LIABILITY(Net)00000

TOTAL100112.23147.18201.03295.27


FIXED ASSETS

Net Block100112.02142.24225.44326.22

INVESTMENTS100305.795.46312435.25

CURRENT ASSETS LOANS&ADVANCESS

Inventories100113.82141.69185.78235.98

Sundry Debtors10084.55133.65140.16291.07

Cash & Bank Balances10089.8166.72447.13333.95

Loans & Advances100147.72236.86438.08718.71

TOTAL10099.1141.19179.15296.24


Current liabilities10095.25146.45157.83345.67

Provisions10093.12246.63379.59438.21

NET CURRENT ASSETS100100.99131.62182.29270.18

MISCLLANEOUS EXPENDITURE10059.8419.68639.6232780.36

TOTAL100112.23147.18209.03295.27

NOTE: Assuming the values are base year i.e., 2010 as 100%

INTERPRETATION:

CURRENT ASSETS: As per the above table of trend percentages of balance sheet of hetero drugs limited. The position of current assets is improved year after year. During the year 2011 the current assets were at 99.1%, but it gradually increased and in the year 2014 it is 296%. This increasing trend is due to increase in the value of cash & Bank balances and loans and advances. FIXED ASSETS: As per the above table of trend percentages of balance sheet of hetero drugs limited. There is a continuous increase in the value of fixed assets. During the year 2014 it is at 326%. It is a positive sign.INVESTMENTS: As per the above table of trend percentages of balance sheet of hetero drugs limited. There is a continuous trend. But during the year 2011 its value reduced significantly. However company was able to hope this situation the fixed assets show and increasing trend thereafter and during the year 2014 it is at 435%.

CURRENT LIABILITIES: As per the above table of trend percentages of balance sheet of hetero drugs limited. There is a continuous trend. From the year 2010 to 2014 there is increase in current liabilities that indicates the credit worthiness, its reputation in the credit market.FINDINGS

The following are the findings and conclusions that have been drawn by researcher Thus, the overall position. Working capital utilization etc. indicated that the firm is in a satisfactory level. FINDINGS AND SUGGETIONS:On the basis of the analysis and interpretations of various ratios and financial statements in chapters 4 &5, the following findings and suggestions are made.

The profitability position of the company is good and it can be improved by looking into the factors contributing to the companys profile. The current and quick ratio of the company is so far so good but further reduction is advised.

The companys total assets and fixed assets turn over ratios are satisfactory, and can be improved.

Though the financial position is considered to be strong, the company is advised to maintain consistency in improving its reserve capacity.

The companys aim should be to strive for the maximization of share holders wealth.

The credit management policy needs to be emended in order to reach the idle debtors turnover ratio. The company is advised to further improvise its policies in this matter. Hetero Drugs Ltd. is one of rising star in the bulk drugs and pharmaceutical industry, which is investing more of its funds and personnel on research & Development activities in order to produce new drugs in the country.

CONCLUSSION On the whole, the performance of HETERO DRUGS LIMITED is good, but a lot of improvement is required especially in utilizing funds, investments, amendments in credit management policies, etc., the company has to achieve its set targets by striving for its fulfillment.

BIBLIOGRAPHY

References

Author/ Source

1. Financial Management

Prasanna Chandra

2. Financial Management

I.M. pandey

`3. Advanced Accountancy

Hani & Mukharjee

4. Annual Reports for the Financial

Year 2008-2013

Hetero Drugs Ltd.,

Website: www.heterodrugs.com

APPENDIX-A

COMPARATIVE BALANCE SHEETOF HETERO DRUGS LTD.FOR THE YEAR ENDING 31MARCH 2009-10PARTICULARS31-03-200931-03-2010INCREASE / DECREASEPERCENTAGEINCREASE/DECREASE

SOURCES OF FUNDS

SHAREHOLDER FUNDS

Share capital3450000034500000

Reserves & Surplus826961437768783995-58177442-7.035085241

LOAN FUNDS

Secured loans555991459609933051539415929.701874215

Unsecured loans12397957347324672-76654901-61.82865382

DIFERRED TAX LIABILITY(Net)97712415NILL

TOTAL16391448841460541718-178603166-10.89611832

APPLICATION OFUNDS

FIXED ASSETS

Gross Block624427126541650837-82776289-13.256357

Less: Depreciation9944056973006804-26433765-26.58247561

Net Block524986557468644033-56342524-10.73218414

INVESTMENTS16810119154988654-113112537-67.28836145


Inventories578425269508179559-70245710-12.14430174

Sundry Debtors64816757176664761811848004718.27923091

Cash & Bank Balances195156821728135197765671013.368071

Loans & Advances118081570799937438681855868577.444785

TOTAL13641900381376492750123027120.901832711


Current liabilities391151250410623831194725814.978274005

Provisions270056562900000019943447.384912257

NET CURRENT ASSETS946033132936868919-9164213-0.968698948

MISCLLANEOUS EXPENDITURE2400410112-13892-57.87368772

TOTAL1639144884 1460541718-178603166-10.89611832

COMPATIVE BALANCE SHEET OF HETERO DRUGS LTD.

FOR THE YEAR ENDING 31ST MARCH 2010-11PARTICULARS31-03-201031-03-2011INCREASE / DECREASEPERCENTAGE INCREASE/DECREASE

SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital345000003450000000

Reserves & Surplus768783995826961437581774427.056746269

LOAN FUNDS

Secured loans609933051555991459-53941592-8.843854569

Unsecured loans4732467212397957376654901161.9766134

TOTAL14605417181541432469808907515.538407428


FIXED ASSETS

Gross Block5416508376244271268277628915.28222304

Less: Depreciation73006804994405692643376536.20726227

Net Block4686440335249865575634252412.02245629

INVESTMENTS54988654168101191113112537205.7015926


Inventories5081795595784252697024571013.82300975

Sundry Debtors766647618648167571-118480047-15.45430315

Cash & Bank Balances2172813519515628-2212507-101826825

Loans & Advances799937438118081570381413247.71748126

TOTAL13764927501364190038-12302712-0.893772379


Current liabilities410623831691151250-19472581-4.742194566

Provisions2900000027005656-1994344-6.877048276

NET CURRENT ASSETS93686891994603313291642130.978174515

DIFERRED TAX LIABILITY(Net)NILL-97712415


TOTAL1460541718154432469-1306109249-89.42635687

COMPATIVE BALANCE SHEET OF HETERO DRUGS LTD.

FOR THE YEAR ENDING 31ST MARCH 2011-12PARTICULARS31-03-201131-03-2012INCREASE / DECREASEPERCENTAGE INCREASE/DECREASE

SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital345000007100000036500000105.7971014


LOAN FUNDS

Secured loans55599145986810603831211457956.13657799

Unsecured loans12397957351584509-72395064-58.39273539

DIFERRED TAX LIABILITY(Net)977124151227721262505971125.64639406

TOTAL1639144884214967144551052656131.14590821

APPLICATIONOF FUNDS

FIXED ASSETS

Gross Block62442712679701130417258417827.63880216


Net Block52498655766661064414162408726.97670733

INVESTMENTS16810119152497262-115603929-68.77044018


Inventories57842526971497824213655297323.60771223

Sundry Debtors648167571102462982737646225658.08100757

Cash & Bank Balances1951562814496599-5019029-25.71799893

Loans & Advances1180815701896415707156000060.60217526

TOTAL1364190038194344623957925620142.4615475


Current liabilities691151250601369325-89781925-12.99019932

Provisions270056567152157044515914164.8392248



TOTAL16391448842149671445 51052656131.14590821

COMPARITIVE BALANCE SHEET OF HETERO DRUGS LTD. FOR THE YEAR ENDING 31ST MARCH 2012-13PARTICULARS31-03-201231-03-2013INCREASE / DECREASEPERCENTAGE INCREASE/DECREASE

SOURCES OF FUNDS

SHAREHOLDER FUNDS

Share capital7100000034500000-36500000-51.4084507


LOAN FUNDS

Secured loans868106038128009149741198545947.45796492

Unsecured loans5158450948119721-3464788-6.716721875


TOTAL2149671445293615778578648634036.58635099

APPLICATIONOF FUNDS

FIXED ASSETS

Gross Block797011304125254321445553191057.15501245


Net Block666610644105651702038990637658.49087162

INVESTMENTS52497262171566882119069620226.8111049

CURRENT ASSETS LOANS &ADVANCESS

Inventories71497824294410912522913088332.04725257

Sundry Debtors10246298271074534824499049974.870539163

Cash & Bank Balances144965999715372882657129570.1829029

Loans & Advances18964157035019176316055019384.65981008

TOTAL1943446239246598944052254320126.88745336



Provisions715215701100809533855938353.91294263


MISCLLANEOUS EXPENDITURE78962565632486673149.278116

TOTAL2149671445293615778578648634036.58635099

COMPARITIVE BALANCE SHEET OF HETERO DRUGS LTD.FOR THE YEAR ENDING 31ST MARCH 2013-14PARTICULARS31-03-201331-03-2014INCREASE / DECREASEPERCENTAGE INCREASE/DECREASE

SOURCES OF FUNDS

SHARE HOLDER FUNDS

Share capital3450000034500000


LOAN FUNDS

Secured loans1280091497179224902751215753040.00944707

Unsecured loans4811972144588001-3531720-7.33944405


TOTAL29361577854312622821137646503646.87980472

APPLICATIONOFFUNDS

FIXED ASSETS

Gross Block1252543214178507941553253620142.51639345

Less: Depreciation1960261894256237673-1704024221-86.92839596

Net Block1056517020152884174247232472244.70583181

INVESTMENTS1715668822393393986777251639.50209691


Inventories944109125119919129125508216627.01829262

Sundry Debtors107453482422315011701156966346107.6713681

Cash & Bank Balances9715372872561496-24592232-25.3127003

Loans & Advances35019176357451594822432418564.05752753

TOTAL24659894404077769905161178046565.36039607



Provisions1100809531270809531700000015.44318026


MISCLLANEOUS EXPENDITURE25656313148859128922965025.002046

TOTAL29361577854312622821137646503646.87980472

APPENDIX-BORGANISATION STRUCTURE BOARD OF DIRECTORS

CHAIRMAN

MANAGING DIRECTOR

DIRECTORS MANAGING DIRECTOR ADVISOR

GENERAL MANAGER (Commercial)

FINANCEACCOUNTS

PURCHASE

STORES

DISPATCH

CORPOREATE OFFICE

CORPOREATE PLANNING

OPERATIONS

GENERAL MANAGER (R&D)

R&D

QUALITYASSURANCE

QUALITY CONTROL

EQUIPMENT DEVELOPMENT

GENERAL MANAGER (Sales)

MARKETING

SALES

1

financial statement analysis of hetero drugs- updated (1)

Documents

purpose of financial

term financial analysis

concept of financial

financial statement

financial strengths

financial soundness

useful financial information

term analysis