2. 
The Indian pharmaceutical sector is highly
fragmented, with more than 20 000 registered
companies, with the top 250 companies
controlling 70% of the market. These companies
can currently meet about 70% of the countries
demands for drugs; this is mainly through the
Maharashtra and Gujarat regions, which account
for 45% of the total number of pharmaceutical
manufacturing units in India.

3. The Indian pharmaceuticals industry has grown from a
mere $0.3billion in 1980, to $12 billion in 2012.
Branded generics dominate the market, making up 7080% of it.
The price of drugs is very low, due to intense
competition. While India is 10th globally in terms of
value, it is 3rd in term of volume of drugs produced.

4. CURRENT RATIO:
YEAR
2011
2012
2013
CURRENT RATIO
2.43
2.61
1.94

Interpretation : The current ratio of Cipla Ltd is above the
standard norm of 2:1 for the years 2011 and 2012 i.e 2.43
and 2.61. But for the year 2013 it has come down i.e 1.94.
Hence It is adequately liquid from the point of view of its
ability to satisfy the claims of short term creditors.

5. CURRENT RATIO
3
2.5
2.43
2.61
2
1.94
1.5
CURRENT RATIO
1
0.5
0
2011
2012
2013
INTERPRETATION: The Current ratio of Cipla
ltd is showing a decreasing trend. i.e it has
decreased from 2.43 to 1.94

6. YEAR
2011
2012
2013
QUICK RATIO
1.98
1.56
1.64
INTERPRETATION: The industry standards say 1:1 ratio is
preferable but in case of Cipla Ltd the quick ratio is more than the
standard norm therefore the company meets its obligation.

7. QUICK RATIO
2.5
2
1.98
1.56
1.5
1.64
QUICK RATIO
1
0.5
0
2011
2012
2013
INTERPRETATION: The quick ratio of cipla Ltd is showing
decreasing trend. It has decreased from1.98 to 1.64.

8. DEBT EQUITY RATIO:
YEAR
DEBT-EQUITY
RATIO
2011
2012
2013
0.09
0
0.11
INTERPRETATION: The debt equity ratio of cipla Ltd is 0.09, 0 and 0.11
for the years 2011, 2012 and 2013 respectively

9. DEBT-EQUITY RATIO
0.12
0.1
0.08
DEBT-EQUITY RATIO
0.06
0.04
0.02
0
2011
interpretation
2012
2013

10. GROSS PROFIT MARGIN
YEAR
2011
2012
2013
Gross profit
margin
17.17
18.8
21.96
Interpretation:
 There are high overheads it should be reduced
 The processes should be optimized.
 Higher values indicate that more cents are earned per dollar of
revenue which is favourable because more profit will be available to
cover non-production costs.

11. Gross profit margin
25
21.96
20
18.8
17.17
15
Gross profit margin
10
5
0
interpretation
2011
2012
2013

12. YEAR
2011
2012
2013
Net Profit Margin
15.45
15.98
18.17
Interpretation:

Percentage of revenue remaining after all operating
expense, interest, taxes and preferred stock dividends (but not common
stock dividends) have been deducted from a company's total revenue
has increased very highly in the year 2013.

13. Net Profit Margin
18.5
18
17.5
17
16.5
Net Profit Margin
16
15.5
15
14.5
14
2011
interpretation
2012
2013

14. YEAR
2011
2012
2013
RETURN ON
ASSETS
82.91
95.14
112.32
Interpretation:
 The assets gave good return in the year 2013
 And the same has maintained constantly in an increasing way
 This situation is quite good.
 Shows the assets are giving good returns.

15. RETURN ON ASSETS
120
112.32
100
95.14
82.91
80
60
RETURN ON ASSETS
40
20
0
2011
Interpretation:
2012
2013

16. INVENTORY TURNOVER RATIO
YEAR
INVENTORY
TURNOVER RATIO
2011
2012
2013
3.7
3.85
3.47
Interpretation:

It is an activity ratio measuring the number of times per period.

The company doesn’t have retained earnings to reinvest it showing constant
fluctuation from year to year.

It has to really work hard to survive in the market.

17. INVENTORY TURNOVER RATIO
3.9
3.85
3.8
3.7
3.7
3.6
3.5
3.47
3.4
3.3
3.2
2011
interpretation
2012
2013
INVENTORY TURNOVER
RATIO

18. YEAR
DEBTORS
TURNOVER RATIO
2011
2012
2013
4.14
4.61
5.14
Interpretation:

It is showing constant increase from year to year.

Credit period is very strict.

19. DEBTORS TURNOVER RATIO
6
5.14
5
4.61
4
4.14
3
DEBTORS TURNOVER
RATIO
2
1
0
2011
Interpretation:
2012
2013

20. YEAR
ASSETS TURNOVER
RATIO
2011
2012
2013
0.96
0.94
0.94
Interpretation:

The asset turnover ratio is not maintaining a trend instead its fluctuating

This shows that the company has not used its assets more effectively in
order to generate its revenue.

21. ASSETS TURNOVER RATIO
0.965
0.96
0.96
0.955
0.95
ASSETS TURNOVER
RATIO
0.945
0.94
0.94
0.94
0.935
0.93
2011
Interpretation:
2012
2013

22. CIPLA LTD
DR REDDY’S LAB
YEAR
2013
2013
CURRENT RATIO
1.94
1.48
QUICK RATIO
1.64
1.6
DEBT EQUITY RATIO
0.11
0.5
GROSS PROFIT MARGIN
22.55
18.33
NET PROFIT MARGIN
18.17
12.74
RETURN ON ASSETS
112.32
375.01
INVENTORY TURNOVER RATIO
3.47
5.51
DEBTORS TURNOVER RATIO
5.14
4.14
ASSET TURNOVER RATIO
0.94
1.33

23. Sources Of Funds
Rs crore
Total Share Capital
160.58
1.63%
Equity Share Capital
160.58
1.63%
Share Application Money
0
0.00%
Preference Share Capital
0
0.00%
8,708.94
88.55%
0
0.00%
8,869.52
90.18%
9.49
0.10%
Unsecured Loans
956.32
9.72%
Total Debt
965.81
9.82%
9,835.33
100.00%
Reserves
Revaluation Reserves
Networth
Secured Loans
Total Liabilities

24. Application Of Funds
Rs crore
Gross Block
4,983.81
50.67%
Less: Accum. Depreciation
1,565.52
15.92%
Net Block
3,418.29
34.76%
350.34
3.56%
Investments
2,601.82
26.45%
Inventories
2,343.37
23.83%
Sundry Debtors
1,645.22
16.73%
105.07
1.07%
Total Current Assets
4,093.66
41.62%
Loans and Advances
1,029.10
10.46%
0
0.00%
5,122.76
52.09%
0
0.00%
1,380.91
14.04%
276.97
2.82%
Total CL & Provisions
1,657.88
16.86%
Net Current Assets
3,464.88
35.23%
0
0.00%
9,835.33
100.00%
Capital Work in Progress
Cash and Bank Balance
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Miscellaneous Expenses
Total Assets