Sun pharma financial analysis 2008-2017

SUN PHARMACEUTICAL INDUSTRIES LTD.
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United world school of business
FINANCIAL STATEMENT ANALYSIS OF
SUN PHARMACEUTICAL
INDUSTRIES LTD.
SUBMITTED TO: SUBMITTED BY:
Prof. Gurmeet Singh kushal Shah
Enrollment No:17p066
Batch: 2017-2019
Section-2
Roll No: 31

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CONTENTS
1) Introduction
(A) INDUSTRY
(B) COMPANY
2) Accounting Policies
3) Corporate Governance
4) Corporate Social Responsibility
5) Financial Statement Analysis
(A) Ratio Analysis
(B) Trend Analysis
6) Conclusion

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1.INTRODUCTION
INDUSTRY
India’s pharmaceutical market ranks third in the world in terms of
volume and 11th in terms of value. At US$ 17.4 Billion, the market in
India accounted for 1.6% share of the global market in 2016. It is
expected to grow at a CAGR of 10-13% to US$ 26-30 Billion by
2021.
The country also has a large pool of scientists and engineers who have
the potential to steer the industry ahead to an even higher level.
Presently over 80 per cent of the antiretroviral drugs used globally to
combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied
by Indian pharmaceutical firms.
The UN-backed Medicines Patent Pool has signed six sub-licences
with Aurobindo, Cipla, Desano, Emcure, Hetero Labs and Laurus
Labs, allowing them to make generic anti-AIDS medicine
TenofovirAlafenamide (TAF) for 112 developing countries.

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Indian pharmaceuticals growth
The Indian pharmaceuticals market witnessed growth at a
CAGR of 5.64 per cent, during 2011-16, with the market
increasing from US$ 20.95 billion in 2011 to US$ 27.57 billion
in 2016. The industry’s revenues are estimated to have grown by
7.4 per cent in FY17.
By 2020, India is likely to be among the top three
pharmaceutical markets by incremental growth and 6th largest
market globally in absolute size.
India’s cost of production is significantly lower than that of the
US and almost half of that of Europe. It gives a competitive
edge to India over others.
Increase in the size of middle class households coupled with the
improvement in medical infrastructure and increase in the
penetration of health insurance in the country will also influence
in the growth of pharmaceuticals sector.

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Indian pharmaceutical growth

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COMPANY
➢ INTRODUCTION
Sun Pharma is the world’s fourth largest specialty generic pharmaceutical
company.It is India’s top pharmaceutical company. A vertically integrated
business, economies of scale and an extremely skilled team enable it to deliver
well-timed quality products at affordable prices.
Sun Pharma provides high-quality medicines trusted by customers and patients in
over 150 countries. Its global presence is supported by 42 manufacturing facilities
spread across six continents, research and development (R&D) centres across the
world and a multi-cultural workforce comprising over 50 nationalities. Sun Pharma
fosters excellence through innovation supported by strong R&D capabilities of
about 2,000 scientists and R&D investments of over 8% of annual revenues.In
India, the Company enjoys leadership across 11 different classes of doctors with 30
brands featuring among top 300 pharmaceutical brands. Sun Pharma’s global
footprint covers the U.S., emerging markets, Western Europe, Japan, Canada,
Israel, Australia and New Zealand. Its Global Consumer Healthcare (GCH)
business is ranked among the Top 10 across four global markets. Its API business

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footprint is strengthened through 14 world-class API manufacturing facilities
around the world Sun Pharma – Daiichi Sankyo Joint Initiative.
It is an international speciality pharma company, with a presence in 30
markets. It also make active pharmaceutical ingredients. In branded markets, its
products are prescribed in chronic therapy areas like cardiology, psychiatry,
neurology, gastroenterology, diabetology and respiratory. Realizing the fact that
research is a critical growth driver, they established their research center
SPARC in 1993 and this created a base of strong product and process
development skills. In India, it has reached leadership in each of the therapy
areas that we operate in, and are rated among the leading companies by key
customers. Strengthening market share and keeping this customer focus remains
a high priority area for the company.
Another API plant, its Ahmednagar plant, was acquired from the multinational
Knoll Pharmaceuticals in 1996, and upgraded for approvals from regulated
markets, with substantial capacity addition over the years. This was the first of
several sensibly priced acquisitions, each of which would bring important parts
to the long–term strategy.
With worldclass technology and a team of strong professionals, it has built sites
and systems that meet the most stringent international manufacturing standards.
Expert quality teams ensure that systems and processes remain in compliance
with the latest standards.
A number of its plants hold approvals from the USFDA and the UK MHRA.
APIs and Dosage forms are made in 19 sites across India, US, Hungary and
Bangladesh.

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MILESTONES (JOURNEY FROM 1983 TO 2017):
1983 – Sun Pharma begins operations in Kolkata with 5 psychiatry – based
products, first with 2 people and then with a 10 – employee team. Year 1
turnover – Rs. 1 million. Within a year, the marketing effort is expanded to
cover all eastern states. A compact manufacturing facility for tablets/capsules is
set up at Vapi.
1986 – Administrative office is set up in Mumbai. Customer coverage extends
to select cities in Western India.
1987 – Marketing operations are rolled out nation–wide.
1988 – With the launch of the brands Monotrate and Angizem, the first few
cardiology products are launched. We feature for the first time in a market audit
by the prescription tracking company, ORG* at rank 107th with 0.1% market
share.
1989 – The corporate office is shifted to Baroda, in the western state of Gujarat.
Products used in gastroenterology are introduced. Exports to neighbouring
countries begin. 1991 – Construction begins at the first research center SPARC
(Sun Pharma Advanced Research center), with 46,000 sq ft of research space,
and investments of almost the size of that year's profits. The company's turnover
is Rs. 9.74 cr, and market rank is 70th.
1993 – SPARC, the first research center, is inaugurated by His Excellency Shri
K. R. Narayanan, the Vice President of India. An office is begun in Moscow.
Products are now registered across 10 markets.
1994 – After an IPO in October, it got listed on the major stock exchanges in
India. The offering is oversubscribed 55 times. A dosage form plant at Silvassa
starts production. Major expansion at the plant in Vapi is completed. For the

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first time, a brand from the company, Monotrate, features among the top 250
pharma brands in the Indian market.
1995 – Its first API plant at Panoli starts production.A new division, Aztec, now
renamed Azura, is begun for cardiology products, with a further reallocation of
products across divisions. Inca, a new division to market critical care
medication to intensive care units begins operations. International marketing is
strengthened with offices in Ukraine and Belarus.
1996 – An API–manufacturing unit at Ahmednagar, the first of the our
acquisitions, is bought from Knoll Pharma. An equity stake is also picked up in
Gujarat Lyka Organics Ltd., a manufacturer of Cephalexin Active with a
USFDA approval for the intermediate, 7ADCA. At the close of the year, we
rank 27th with 2 products among the country's top selling 300 pharma brands.
Product registrations are now in place across 24 countries.
1997 – It begin the first of its international acquisitions. As part of a
technology–for–equity agreement, a stake is acquired in a generic dosage form
manufacturer; the Detroit–based Caraco Pharm Labs. An equity stake is taken in
MJ Pharma, a manufacturer of several dosage form lines with UK MHRA
approval for Cephalexin capsules.
1998 – A basket of brands, which include several in the respiratory/asthma area,
are acquired from Natco Pharma. Its new formulation plant at Silvassa
commences operations.
1999 – Rank moves within the top 10 in the domestic market. For a quick entry
in ophthalmology, Milmet Labs is merged into Sun Pharma. The Cephalexin
API manufacturer Gujarat Lyka Organics is merged with Sun Pharma.
6 brands now feature among the leading 300 prescription pharma brands in
India.
2000 – Ranked 5th among all companies in the domestic market on a monthly
basis. Pradeep Drug company, a Chennai based API manufacturer is merged
with Sun Pharma.

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Plans are shared to set up a new research campus in Chennai, which is later
dropped as a suitable site is found in Baroda where we have an existing base.
2001 – A new formulation plant is built in Dadra. This new plant is spread over
a 5–acre site with built up area of 120,000–sq. ft. and has been designed and
built to comply with international regulatory requirements, such as the
UKMHRA and USFDA.
The erstwhile TDPL division is renamed Spectra. A new division, Arian,
targeting cardiologists/physicians and diabetologists, is launched.
2002 – Forbes Global ranks Sun Pharma in the list of best small 200 companies
for 2002 (turnover less than $500 million). Sun Pharma is selected as the best
company by Express Pharma Pulse, for overall performance for 2002 (in the
category A – market share over 2.5%). 4 manufacturing sites win the
prestigious IDMA awards.
Work commences on a new, state–of–the–art drug discovery campus in Baroda;
this 16–acre site, with space for 400+ scientists on completion, will be
commissioned over the next two years. Work begins on a new R&D center in
Mumbai, with 50,000 sq. ft. floor area for projects aimed at the North American
and European markets.
2003 – Forbes Global ranks Sun Pharma in the list of the best small 200
companies for 2003 (turnover less than $500million). Sun Pharma is rated
amongst the best–managed companies for 2003 across all sectors. (Business
Today–AT Kearney study of best–managed companies)
2004 – Sun Pharma acquires common stock and options from 2 large
shareholders of Caraco, increasing stake to over 60% from 44% at a total outlay
of about $42 million. By 2007, this stake has reached 75% on a diluted basis.
The formulation site in Halol, India (the erstwhile MJ Pharma site) receives
approval from USFDA, UK MHRA, South African MCC, Brazilian ANVISA
and Columbian INVIMA.
2005 – Sun Pharma buys a plant in Bryan, Ohio, US and the business of ICN,
Hungary from Valeant Pharma.

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Sun Pharma acquires the intellectual property and assets of Able Labs from the
US District Bankruptcy court in New Jersey in December 2005.
Dilip Shanghvi, the CMD, receives the E&Y Entrepreneur of the Year award in
healthcare and life sciences for 2005.
Sun Pharma is selected by Forbes amongst the best 200 companies (sales less
than USD 1 billion) in Asia. This is the fourth time in 5 years that the company
has been selected.
2006 – Announced the demerger of innovative business with pipelines, people,
equipment and funding, into a new company.
2007 –Completed the demerger of the innovative business, with requisite legal
and regulatory approvals. SPARC ltd, the new company, is listed on the stock
exchanges in India, the first pure research company to be so listed.
In May 2007, it, along with its subsidiaries, signed definitive agreements to
acquire Taro Pharmaceutical Industries Ltd., (TAROF, Pink Sheets), a
multinational generic manufacturer with established subsidiaries, manufacturing
and products across the U.S., Israel, Canada for $454 mill. This all–cash deal is
subject to Taro shareholder approval and requisite regulatory clearances
2008 – In November 2008, it along with its subsidiaries, acquired 100%
ownership of Chattem Chemicals, Inc.,a narcotic raw material importer and
manufacturer of controlled substances with a approved facility in Tennessee.
This will offer vertical integration for its controlled substance dosage form
business in the US.
2010 – In the first week of September, the Supreme Court of Israel unanimously
dismissed the appeal by Taro of the previous ruling by the Tel–Aviv District
Court holding that the Israeli special tender offer (STO) rules do not apply to
the Tender Offer by Suns subsidiary, Alkaloida, to purchase all outstanding
Ordinary Shares of Taro. In the last week of September: we completed the
acquisition of a controlling stake in Taro and increased economic interest and
their voting rights. This doubles the size of our US business.

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2011 – Dilip Shanghvi, CMD, received the E&Y Entrepreneur of the Year
Award for 2010. (ORG – Operations Research Group Audit of Retail Chemist
Sales, later renamed the IMS – ORG Retail Store Audit. Both ORG and IMS are
the trademarks of their registered owners)
2014 – April 6, 2014 – Sun Pharmaceutical Industriesand Ranbaxy Laboratories
announced that they have entered into definitive agreements pursuant to which
Sun Pharma will acquire 100% of Ranbaxy in an all–stock transaction.
2015-acquired gsk’s opiate businessand insite vision ,ophthalmic portfolio
2016-licencing agreement with almirall for tildrakizumab in Europe for
psoriasis
2017-positive phase 3 results for seciera

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BOARD OF DIRECTORS:
As on 31st March, 2016, the Board of Directors comprises eight members consisting of seven
Non-Executive Directors who account for more than eighty-seven percent of the Board’s
strength as against the minimum requirement of fifty percent as per the Listing Regulations.
The Non-Executive Directors are eminent professionals, having considerable professional
experience in respective fields. The composition is as under: -
Name of the director designation Category
Mr.israel makov chairman Non-independent
director
Mr.dilip shanghvi Managing director Promoter,executive
director
Mr.sudhir v.valia Whole time director Non-promotor executive
director
Mr.shailesh t.desai Whole time director Non-promotor executive
director
Mr.kalyansunderam
subhramanyam
Whole time director Non-promotor executive
director
Mr.s.mohanchand dadha - Non-executive
independent director
Vision,values and sunology
OUR VISION:
• Reaching People and Touching Lives Globally as a Leading Provider of Valued MedicinesTo
manufacture products
OUR VALUES:
Quality
• Get it right the first time

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Reliability
• Maintain efficiency & discipline in all processes & systems and fulfil the promises made to
stakeholders
Consistency
• Endeavour to bring new products to the market & consistently deliver value to stakeholders
Trust
• Be transparent in dealings
Innovation
• Implement new ideas & technologies to meet unmet needs and think ahead of times.
SUNOLOGY
Sunology - a combination of two words, Sun & Ideology is at the core of Sun. Humility, Integrity,
Passion & Innovation together form Sunology. It is a way of life at Sun.
Humility
• Under promise and over deliver
• Let your work speak for you
• Always put ‘we’ before ‘me’
• Learn from mistakes
Integrity
• Do the right thing with conviction & without fear
• Practice honesty, impartiality & fairness at all times
• Adhere to strong ethical and moral standards
• Courage to call-out what is not right
Passion
• Infuse energy in everything that you do
• Walk that extra mile
• Inspire others
• Do your best in every situation
Innovation
• Strive to implement new ideas & technologies to meet unmet needs
• Encourage others to think out-of-the-box
• Do not limit yourself
• Believe in raising the bar every time

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AWARDS AND ACCREDIATION:
1.
2.
3.
4.
Mr. Dilip Shanghvi receives
Entrepreneur of the Year Award
All India Management Association (AIMA)
Sun Pharmaceutical Industries Inc. receives
DIANA (Distribution Industry Award for
Notable Achievements) Award
Healthcare Distribution Alliance, USA
Mr. Dilip Shanghvi receives
Padma Shri Award
Government of India
sun Pharma receives
Community Care Award
ASSOCHAM (Associated Chambers of
Commerce)
2017
2016

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5.
6.
7.
8.
Sun Pharma receives
India Pharma Research & Development
Award 2015
Ministry of Chemicals & Fertilizers,
Government of India
Sun Pharma receives
Cardiovascular Pharmaceutical Company
of the Year Award
Frost & Sullivan India Healthcare Excellence
Awards
Sun Pharma is named
Company of the Year
The Economic Times
sun Pharma wins
Business Leadership of the Year –
Pharmaceutical Award
NDTV Profit
2012
2014
4
2015
2013

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9.
REGISTERED ADDRESS
Sun Pharma Advanced Research Centre (SPA )
Tandalja,,
Vadodra
Gujarat
390020
Tel: 0265-6615500
Fax: 0265-2354897
Email: secretarial@sunpharma.com
Website: http://www.sunpharma.com
Mr. Dilip Shanghvi is named
Entrepreneur of the Year (Healthcare and
Life Science)
Ernst & Young
2005

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(2)ACCOUNTING POLICIES:
(A) BASIS OF ACCOUNTING:
These financial statements are prepared under historical cost convention on
an accrual basis in accordance with the Generally Accepted Accounting
Principles in India and the Accounting Standards (AS) as notified under the
Companies (Accounting Standards) Rules, 2006.
Statement of compliance
These financial statements are separate financial statements of the Company
(also called standalone financial statements). The Company has prepared
financial statements for the year ended March 31, 2017 in accordance with
Indian Accounting Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) together with the comparative
period data as at and for the year ended March 31, 2016. Further, the Company
has prepared the opening balance sheet as at April 01, 2015 (the transition date)
in accordance with Ind AS.
For all the periods up to the year ended March 31, 2016, the Company had
prepared its financial statements in accordance with the requirements of
previous GAAP, which includes Standards notified under the Companies
(Accounting Standards) Rules, 2006 (as amended).
(B)FOREIGN CURRENCY
On initial recognition, transactions in currencies other than the Company
functional currency (foreign currencies) are translated at exchange rates at the
dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are translated into the functional currency at the
exchange rate at that date exchange differences arising on the settlement of
monetary items or on translating monetary items at rates different from those at
which they were translated on initial recognition during the period or in

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previous period are recognised in profit or loss in the period in which they arise
except for:
Property, plant and equipment
Items of property, plant and equipment are stated in balance sheet at cost less
accumulated depreciation and accumulated impairment losses, if any. Freehold
land is not depreciated.
(C) INTANGIBLE ASSETS
Intangible assets that are acquired by the Company and that have finite useful
lives are measured at cost less accumulated amortisation and accumulated
impairment losses, if any. Subsequent expenditures are capitalised only when
they increase the future economic benefits embodied in the specific asset to
which they relate.
Research and development
Expenditure on research activities undertaken with the prospect of gaining new
scientific or technical knowledge and understanding are recognised as an
expense when incurred. Development activities involve a plan or design for the
production of new or substantially improved products and processes. An
internally-generated intangible asset arising from development is recognised if
and only if all of the following have been demonstrated:
- development costs can be measured reliably;
- the product or process is technically and commercially feasible;
- future economic benefits are probable; and
- the Company intends to and has sufficient resources to complete development
and to use or sell the asset.
.
(D)FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement

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All financial assets are recognised initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial asset. Purchases or sales
of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are
recognised on the trade date.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four
categories:
- Debt instruments at amortised cost
- Debt instruments at fair value through other comprehensive income (FVTOCI)
- Debt instruments and equity instruments at fair value through profit or loss
(FVTPL)
- Equity instruments measured at fair value through other comprehensive
income (FVTOCI)
(E) LEASES
Lease rental for assets taken / given on operating lease are charged / credited to
the Statement of Profit and Loss in accordance with Accounting Standard 19 on
Leases.
(F) CASH AND CASH EQUIVALENTS
Cash and cash equivalent in the balance sheet comprise cash at banks and on
hand and short-term deposits with an original maturity of three months or less,
which are subject to an insignificant risk of changes in value.
(G) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT
ASSETS
Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of obligation.

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(H)REVENUE
Revenue from sale of goods include excise duty and is measured at the fair
value of the consideration received or receivable. Revenue is net of returns,
sales tax, charge backs, rebates and other similar allowances.
Sales Returns
The Company accounts for sales returns accrual by recording an allowance for
sales returns concurrent with the recognition of revenue at the time of a product
sale. This allowance is based on the companys estimate of expected sales
returns. With respect to established products, the Company considers its
historical experience of sales returns, levels of inventory in the distribution
channel, estimated shelf life, product discontinuances, price changes of
competitive products, and the introduction of competitive new products, to the
extent each of these factors impact the Companys business and markets. With
respect to new products introduced by the Company, such products have
historically been either extensions of an existing line of product where the
Company has historical experience or in therapeutic categories where
established products exist and are sold either by the Company or the
Company’scompetitors.
.
(I)INCOME TAX
Income tax expense consists of current and deferred tax. Income tax expense is
recognised in profit or loss except to the extent that it relates to items recognised
in OCI or directly in equity, in which case it is recognised in OCI or directly in
equity respectively. Current tax is the expected tax payable on the taxable profit
for the year, using tax rates enacted or substantively enacted by the end of the
reporting period, and any adjustment to tax payable in respect of previous years.
Current tax assets and tax liabilities are offset where the Company has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.

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(J) EARNINGS PER SHARE
The Company presents basic and diluted earnings per share (â€œEPSâ€ •)
data for its equity shares. Basic EPS is calculated by dividing the profit or loss
attributable to equity shareholders of the Company by the weighted average
number of equity shares outstanding during the period. Diluted EPS is
determined by adjusting the profit or loss attributable to equity shareholders and
the weighted average number of equity shares outstanding for the effects of all
dilutive potential ordinary shares, which includes all stock options granted to
employees.
The number of equity shares and potentially dilutive equity shares are adjusted
retrospectively for all periods presented for any share splits and bonus shares
issues including for changes effected prior to the approval of the financial
statements by the Board of Directors.
(K)RECENT ACCOUNTING PRONOUNCEMENTS
Standards issued but not yet effective In March 2017, the Ministry of Corporate
Affairs issued the Companies (Indian Accounting Standards) (Amendments)
Rules, 2017, notifying amendment to Ind AS 7, Statement of cash flow. This
amendment is in accordance with the recent amendments made by International
Accounting Standards Board (IASB) to IAS 7, Statement of cash flows. The
amendment is applicable to the Company from April 01, 2017.

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(3)CORPORATE GOVERNANCE
In compliance with Regulation 34(3) read with Schedule V of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“Listing Regulations, 2015”), the Company submits the Corporate Governance Report for
the year ended March 31, 2017.
1. Company’s philosophy on code of governance:
Sun Pharmaceutical Industries Limited’s philosophy on Corporate Governance envisages
working towards high levels of transparency, accountability, consistent value systems,
delegation across all facets of its operations leading to sharplyfocused and operationally
efficient growth. The Company tries to work by these principles in all its interactions with
stakeholders, including shareholders, employees, customers, suppliers and statutory
authorities.
Sun Pharmaceutical Industries Limited is committed to learn and adopt the best practices of
Corporate Governance.
2. Board of Directors:
As on 31st March, 2016, the Board of Directors comprises eight members consisting of seven
Non-Executive Directors who account for more than eighty-seven percent of the Board’s
strength as against the minimum requirement of fifty percent as per the Listing Regulations.
The Non-Executive Directors are eminent professionals, having considerable professional
experience in respective fields. The composition is as under: -

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Name of the director designation category
Mr.israel makov chairman Non-independent
director
Mr.dilip shanghvi Managing director Promoter,executive
director
Mr.sudhir v.valia Whole time director Non-promotor executive
director
Mr.shailesh t.desai Whole time director Non-promotor executive
director
Mr.kalyansunderam
subhramanyam
Whole time director Non-promotor executive
director
Mr.s.mohanchand dadha - Non-executive
independent director
3.Audit Committee:
The Audit Committee of the Company presently comprises of four independent non-
executive Directors viz. Mr. Keki M. Mistry, Mr. S. Mohanchand Dadha, Mr. Ashwin S.
Dani and Mr. Hasmukh S. Shah. Mr. Keki M. Mistry is the Chairman of the Committee. The
constitution of Audit Committee meets with the requirements as laid down under Section 177
of the Companies Act, 2013 and also of Regulation 18 of the Listing Regulations, 2015. Mr.
Sunil R. Ajmera, the Company Secretary of the Company is the Secretary of the Audit
Committee. May 14, 2016, May 30, 2016, June 23, 2016, August 12, 2016, November 10,
2016 and February 14, 2017. The attendance of each Member of the Committee is given
below:

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Name of the Director Chairman /
Member of the
Committee
No. of Audit
Committee
Meetings
attended
Mr. Keki M. Mistry Chairman 6
Mr. S. Mohanchand Dadha Member 5
Mr. Hasmukh S. Shah Member 5
Mr. Ashwin S. Dani Member 5
4. Nomination and Remuneration Committee:
The Nomination and Remuneration Committee presently comprises of three Directors viz.
Mr. Keki Mistry, Mr.Israel Makov and Ms. Rekha Sethi. Mr. Keki M. Mistry is the Chairman
of the Committee. The constitution of the Nomination and Remuneration Committee meets
with the requirements of Section 178 of the Companies Act, 2013 as also the requirements
laid down in Regulation 19 of the Listing Regulations, 2015. Mr. Sunil R. Ajmera, the
Company Secretary of the Company is the Secretary of the Committee.
The Nomination and Remuneration Committee had devised criteria for evaluation of
performance of the Directors including Independent Directors. The said criteria provides
certain parameters like knowledge, competency, fulfillment of functions, availability and
attendance, initiative, integrity, contribution, independent views and judgment, which are in
compliance with applicable laws, regulations and guidelines May 30, 2016, August 12, 2016,
November 10, 2016 and February 14, 2017. The attendance of each Member of the
Committee is given below:

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Member of the
Committee
No. of Audit
Committee
Meetings
Attended
Mr. Keki M. Mistry Chairman 6
Mr. Israel makov Member 4
Ms.rekha sethi Member 4
5. Stakeholders Relationship Committee:
The Stakeholders’ Relationship Committee presently comprises of Mr. S. Mohanchand
Dadha, Mr. Dilip S. Shanghvi, Mr. Sudhir V. Valia with Mr. Hasmukh S. Shah as the
Chairman. The constitution of the Stakeholders’ Relationship Committee meets with the
requirements of Section 178 of the Companies Act, 2013 and also of Regulation 20 of the
Listing Regulations, 2015. Mr. Sunil R. Ajmera, the Company Secretary of the Company is
the Secretary of the Committee. The Board of Directors has delegated the power of approving
transfer of securities to M/s. Link Intime India Pvt. Ltd, and/or the
Company Secretary of the Company.
6. RISK MANAGEMENT COMPANY:
The Risk Management Committee comprises of Mr. Dilip S. Shanghvi, Managing Director of
the Company, Mr. Sudhir V. Valia, Whole time Director of the Company and Mr.Uday
Baldota, CFO of the Company. The Chairman of the Committee is Mr. Dilip Shanghvi. The
constitution of the Committee meets the requirements of Regulation 21 of the Listing

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Regulations, 2015. The terms of reference of the committee inter alia include: to formulate
and recommend to the Board a Risk Management Plan/Policy, to implement, monitor and
review the risk management plan for the Company, to recommend and implement procedures
for risk assessment and minimisation, to monitor the Risk Management Policy of the
Company from time to time, to discharge such other functions and exercise such other
powers as may be delegated/ directed by the Board of Directors from time to time. Mr. Sunil
R. Ajmera, the Company Secretary of the Company is the Secretary of the Committee.
During the year ended March 31, 2017, two meetings of Risk Management Committee
Meetings were held on November 9, 2016 and February 13, 2017. The attendance of each
member.
Member of the
Committee
No. of Risk
Management
Committee
Meetings
attended
Mr. Dilip S. Shanghvi Chairman 2
Mr. Sudhir V. Valia Member 2
Mr. Uday Baldota Member 2
6. subsidiary companies:
In accordance with Regulation 16 of the Listing Regulations, 2015, Sun Pharma Laboratories
Limited is a material Indian subsidiary Company (whose Debt Securities are listed on BSE)
whose turnover or net worth (i.e., paid-up capital and free reserves) exceeds 20% of the
consolidated turnover or net worth respectively, of the Company and its subsidiaries in the
immediately preceding accounting year.
Mr. S. Mohanchand Dadha, and Ms. Rekha Sethi, Independent Directors of the Company are
also Directors on the Board of Sun Pharma Laboratories Limited, as per the requirements
specified in Regulation 24 of the Listing Regulations, 2015.
The financial statements including investments made by the unlisted subsidiaries were
placed before and reviewed by the Audit Committee of the Company. The Board of Directors
of the Company reviewed periodically, the statement of all significant transactions and
arrangements entered into by the unlisted subsidiary companies.

28 | P a g e
Copies of the Minutes of the Board Meetings of the unlisted subsidiary Companies were
placed at the Board Meetings of the Company held during the year.
The policy for determining material subsidiaries of the Company is available on the website
of the Company and can be accessed at http://www.sunpharma.com/policies.

29 | P a g e
(4)CORPORATE
SOCIAL RESPONSIBILITY
Corporate social responsibility has been very popular amongst companies and top
corporations. Especially in the 21st century when environmental concerns, human rights,
labor rights, fair trade and many other concerns are becoming increasingly important to
consumers, stakeholders and companies alike. Corporate Social Responsibility (CSR) is a
concept that has attracted worldwide attention and acquired a new resonance in the global
economy. Heightened interest in CSR in recent years has stemmed from the advent of
globalization and international trade, which have reflected in increased business complexity
and new demands for enhanced transparency and corporate citizenship. Moreover, while
governments have traditionally assumed sole responsibility for the improvement of the living
conditions of the population, society’s needs have exceeded the capabilities of governments
to fulfil.
At Sun Pharma, we make good health affordable and accessible to the marginalized
communities and society at large. With active fieldwork, dedicated research and recognition
of the efforts of those who work behind the scenes to combat illness and disease, we help as
many people as we can to ensure their right to good health.
Health, education, water, livelihood, environment and disaster relief are some of our key
priorities in the area of corporate social responsibility (CSR). We also help conduct trainings
in vocational skills for communities and undertake local-level community programmes that
are need based.
There are three major company social responsibility activities by sun pharma given below.
1) sun pharma community health care society
2) Sun Pharma – Daiichi Sankyo Joint Initiative
3) sun pharma science foundation
This policy, which encompasses the Company’s philosophy towards corporate social
responsibility and lays down the guidelines and mechanism for undertaking socially useful
programs for welfare & sustainable development of the community at large, is titled as the
Corporate Social Responsibility

30 | P a g e
1. CSR VISION AND MISSION STATEMENT
Vision-“they will strive to bring about the holistic development of underserved
communities in a sustainable and impactful manner.”
Mission-We will leverage our people, expertise and networks to address the needs of the
communities that we serve and thereby catalyze overall development.”
2. CSR POLICY OBJECTIVES
Drawing from the CSR vision and mission statement of Sun Pharma Laboratories Limited
( the Company ) the CSR policy has been formulated with the following objectives:
Serving the community: Giving back to the community and addressing their needs is a key
priority for the Company. The Company believes that the progress of the local community
should go hand-in-hand with the growth of the Company. The Company therefore intends to
concentrate on the communities immediately around its areas of operation and support
their upliftment.
Focus on quality: The Company believes in delivering high quality support to meet the
needs of the community.
Ensuring sustainability: The Company wishes to introduce interventions in the communities
that address critical needs and can become sustainable over a period of time.
Leveraging resources: Leveraging the Company’s internal resources such as research,
marketing, financial, human resources and products to maximise impact in social
initiatives.
3. APPLICABILITY
This policy has been formulated in consonance with section 135 of Companies Act 2013 on
CSR and the CSR Rules as notified by the Ministry of Corporate Affairs in 2014.
The Policy shall apply to all CSR projects/programmes undertaken by the Company in India
as per Schedule VII of the Companies Act, 2013 ( the Act). This policy shall be applicable to
Sun Pharma Laboratories Limited.
4. STAKEHOLDER ENGAGEMENT
The Company will impact and engage the following set of stakeholders in their CSR
activities. These stakeholders will participate in the CSR initiatives as beneficiaries,
participants and/or decisionmakers.

31 | P a g e
5. PROCESS
CSR Committee
The CSR Committee will consist of:
1. Mr. Dilip Shanghvi, Director
2. Mr. Sudhir Valia, Director
3. Ms. Rekha Sethi, Independent Director
Or such other Directors as may be decided by the Board of directors from time to time.
The CSR Committee will be responsible for the following:
• Formulating a Corporate Social Responsibility Policy which shall indicate the
activities to be undertaken by the Company as specified in Schedule VII and
recommending the same to the Board for approval.
• Recommending the amount of expenditure to be incurred on the activities referred
above.
• Monitoring the Corporate Social Responsibility Policy of the Company on a regular
basis, ensuring that it is updated for any change or enhancement in scope and the
same is recommended to the Board for approval.
• Defining the modalities and monitoring the progress of the activities being undertaken
under the policy.
6. MONITORING PLAN
The monitoring plan for Sun Pharma’s CSR programs will include the following:
6.1. Targets to be achieved
The Company will decide certain targets to be achieved for impact generation, which will
also be in line with the broader Company mission and vision.
6.2. Monitoring Process
For each of the programs, the Company will agree with the implementing agency, a plan and
budget for the year. The agency will then submit monthly performance reports in the format
and manner that has been agreed with the company at the beginning of the partnership.
The CSR team will review the reports and actively engage with the implementing agency to
ensure that the programs are on track. The CSR team will submit a quarterly report to the
CSR Task Force which in turn will submit it to the CSR Committee. The report will cover –
Progress of each program vis-à-vis the timelines, plan and budget Beneficiaries covered
Performance of the external partners

32 | P a g e
7. COMMUNICATION AND REPORTING
CSR program details would be communicated in the public domain through the annual report
in the reporting format as mandated by Section 135 of the Companies Act, 2013.
8. SURPLUS ARISING OUT OF CSR PROJECTS
The programs that the Company intends to implement will not give rise to any surplus.
However, in case a surplus is earned, then such surplus arising out of the CSR projects or
programs or activities shall not form part of the business profit of the Company.
9. Exclusions
The CSR activities of the Company will not include the activities undertaken in pursuance of
normal course of business of the Company. Any contribution directly or indirectly to any
political party or any religious groups will not be considered as CSR activity.
10.CONCLUSION
Sun Pharma Laboratories Limited is committed to ensuring the implementation of the
proposed CSR programs in order to bring meaningful and sustainable development of
underserved communities. The Company will leave no stone unturned in ensuring that it
contributes to the society, which is an integral stakeholder for it.
“We will strive to bring about the holistic
development of underserved communities in a
sustainable and impactful manner.”
We will leverage our people, expertise and
networks to addressthe needs of the communities
that we serve and thereby catalyze overall
developme
Name of the Director Chairman/Member Nature of Directorship
Mr. Dilip S. Shanghvi Chairman Executive Director
Mr. Sudhir V. Valia Member Executive Director
Ms. Rekha Sethi Member Independent, Non-Executive Director

33 | P a g e
(5)Financial Statement Analysis
(A)RATIO ANALYSIS:
➢ PER SHARE RATIOS:
▪ BASIC EPS & DILUTED EPS
Mar-08 Mar-09 Mar-10 Mar-
11
Mar-12 Mar-13 Mar-
14
Mar-
15
Mar-16 Mar-17
Net
profit 1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.3
No.of
shares 21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85
291.52 270.22
Ans.
72.00139 88.0163 65.0087 17.999 25.99923 29.0006 15 19
19.9999 28.9997
▪ CASH EPS
Mar-08 Mar-09 Mar-
10
Mar-11 Mar-12 Mar-
13
Mar-
14
Mar-15 Mar-16 Mar-
17
Net
Profit
+ 1550.91 1889.71 1346.98 1907.37 3042.17 3469.34 3879.00 5488.21 5830.38 7836.30
DEPN
/ 96.86 123.29 153.31 204.85 291.16 336.17 409.23 1194.72 1013.52 1264.75
No of
Shares 21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85 291.52 270.22
Ans.
76.50 93.76 72.41 19.93 28.49 31.81 16.58 23.14 23.48 33.68

34 | P a g e
▪ Book Value [ExclRevalReserve]/Share (Rs.)
Mar-
08
Mar-
09
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
Net
Worth(T
otalShar
e
holders
fund)/
4991.4
6
7044.9
2 7828.91 9483.32
12235.7
8
14989.
73
18524.
95
25589.
71
3140
4.22
36639.
67
No of
Shares
21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85
291.5
2 270.22
Ans.
231.73 328.13 377.84 89.49 104.57 125.30 71.64 88.59
107.7
3 135.59
▪
▪ Book Value [InclRevalReserve]/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Net
Worth(
Total
Share
holders
fund
- 4991.46 7044.92 7828.91 9483.32 12235.78 14989.73 18524.95 25589.71 31404.22 36639.67
Revaln
Res) / 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.98 0.00 0.00
No of
Shares 21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85 291.52 270.22
Ans.
231.73 328.13 377.84 89.49 104.57 125.30 71.64 88.58 107.73 135.59

35 | P a g e
▪ Dividend / Share(Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
Dividend
217.47 284.79 284.79 362.45 440.12 517.79 310.67 721.95 240.68 240.68
No of
Shares
21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85
291.52 270.22
10.10 13.26 13.74 3.42 3.76 4.33 1.20 2.50 0.83 0.89
▪ Revenue from Operations/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Revenue
from
Operations
(Net)
3360.32 4279.52 3903.23 5721.64 8005.40 11238.89 16004.39 27286.50 27744.16 29993.93
No of
Shares
21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85 291.52 270.22
156.00 199.33 188.38 53.99 68.42 93.95 61.89 94.47 95.17 111.00
▪ PBDIT/Share (Rs.)
Mar-08 Mar-09 Mar-
10
Mar-
11
15
Mar-16 Mar-17
PBDIT
1705.01 2090.01 1574.3 2314.7 3674.72 4694.22 5034.59 8176.6
8255.69 10712.4
No of
Shares
21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85
291.52 270.22
79.16 97.35 75.98 21.84 31.41 39.24 19.47 28.31 28.32 39.64

36 | P a g e
▪ PBIT/Share (Rs.)
11
15
Mar-16 Mar-17
PBIT
1608.15 1966.72 1420.99 2109.8 3383.56 4358.05 4625.36 6981.9
7242.17 9447.67
No of
Shares
21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85
291.52 270.22
74.66 91.60 68.58 19.91 28.92 36.43 17.89 24.17 24.84 34.96
▪ PBT/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
PBT
1599.39 1960.87 1414.8 2036 3355.36 4314.9 4581.17 6403
6765.3 9047.9
No of
Shares
21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85
291.52 270.22
74.25 91.33 68.28 19.21 28.68 36.07 17.72 22.17 23.21 33.48
▪ Net Profit/Share (Rs.)
11
Mar-12 Mar-13 Mar-
14
Mar-
15
Mar-16 Mar-
17
Net
profit
1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.
3
No of
Shares
21.54 21.47 20.72 105.97 117.01 119.63 258.60 288.85
291.52 270.2
2
72.00139 88.0163 65.0087 17.999 25.99923 29.0006 15 19
19.9999 28.99
97

37 | P a g e
➢ PROFITABILITY RATIOS:
▪ PBDIT Margin (%)
11
15
Mar-16 Mar-17
PBDIT
1705.01 2090.01 1574.3 2314.7 3674.72 4694.22 5034.59 8176.6
8255.69 10712.4
Net
Sales
3360.32 4279.52 3903.23 5727.9 8019.49 11299.9 16080.36 27433 28269.7 31308.1
50.73951 48.83749 40.3333 40.411 45.82237 41.5423 31.30894 29.805 29.2033 34.2161
▪ PBIT Margin (%)
11
15
Mar-16 Mar-17
PBIT
1608.15 1966.72 1420.99 2109.8 3383.56 4358.05 4625.36 6981.9
7242.17 9447.67
Net
Sales
3360.32 4279.52 3903.23 5727.9 8019.49 11299.9 16080.36 27433 28269.7 31308.1
47.85705 45.95656 36.4055 36.834 42.19171 38.5673 28.76403 25.45 25.6181 30.1764
▪ PBT Margin (%)
11
15
Mar-16 Mar-17
PBT
1599.39 1960.87 1414.8 2036 3355.36 4314.9 4581.17 6403
6765.3 9047.9
Net
Sales
3360.32 4279.52 3903.23 5727.9 8019.49 11299.9 16080.36 27433 28269.7 31308.1
47.59934 45.81986 36.2479 35.544 41.84007 38.1853 28.48923 23.34 23.9312 28.8994

38 | P a g e
▪ Net Profit Margin (%)
11
15
Mar-16 Mar-17
Net
Profit
1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.3
Net
Sales
3360.32 4279.52 3903.23 5727.9 8019.49 11299.9 16080.36 27433 28269.7 31308.1
46.15364 44.15705 34.5094 33.3 37.93471 30.7025 24.12259 20.006 20.6241 25.0296
▪ Return on Net worth / Equity (%)
11
15
Mar-16 Mar-17
Net Profit
1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.3
shareholdrs
fund
*100
4991.46 7044.92 7828.91 9483.3 12235.78 14989.7 18524.95 25590 31404.2 36639.7
31.07127 26.82373 17.2052 20.113 24.8629 23.1448 20.93933 21.447 18.5656 21.3875
▪ Return on Capital Employed (%)
Mar-08 Mar-09 Mar-
10
Mar-
11
Mar-12 Mar-
13
Mar-14 Mar-
15
Mar-16 Mar-
17
NetProfit
/ 1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.3
Total
Asset
- 6143.4 8263.45 9072.08 12418 16474 20881.2 29370.82 49028 54219.6 61410.2
Current
Liablities
*100 700.74 878.38 883.13 1775.4 2618.49 3139.79 5989.59 16353 13247.7 17887

39 | P a g e
28.49544 25.58825 16.4488 17.923 21.95639 19.555 16.59023 16.796 14.2302 18.0049
▪ Return on Assets (%)
11
15
Mar-16 Mar-17
Net
Profit
1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.3
Total
Assets
6143.4 8263.45 9072.08 12418 16474 20881.2 29370.82 49028 54219.6 61410.2
25.24514 22.86829 14.8475 15.36 18.46649 16.6147 13.20699 11.194 10.7533 12.7606
▪ Total Debt/Equity (X)
11
15
Mar-16 Mar-17
Longterm
Borrowing
+ 80.19 20.32 45.94 157.28 155.42 115.26 48.67 1368.4 3116.73 1436.08
Def.tax Liab
/ 182.44 122.79 120.91 134.83 155.2 205.35 275.67 98.52 61.61 314.79
Total
Shareholders'
Fund 4991.46 7044.92 7828.91 9483.3 12235.78 14989.7 18524.95 25590 31404.2 36639.7
0.052616 0.020314 0.02131 0.0308 0.025386 0.02139 0.017508 0.0573 0.10121 0.04779
▪ Asset Turnover Ratio (%)
11
Mar-12 Mar-
13
Mar-14 Mar-
15
Mar-16 Mar-
17
Net
Profit
3360.32 4279.52 3903.23 5727.9 8019.49 11299.9 16080.36 27433 28269.7 31308.1
Total
Assets
6143.4 8263.45 9072.08 12418 16474 20881.2 29370.82 49028 54219.6 61410.2
54.69805 51.78854 43.0246 46.127 48.67968 54.115 54.74944 55.955 52.1393 50.982

40 | P a g e
LIQUIDITY RATIOS:
▪ Current Ratio (X)
11
15
Mar-16 Mar
-17
Current
Assets
4036.75 4268.29 3712.11 7637.6 10293.37 11801.6 18686.46 29122 30864.6
3295
3.7
Current
Liabilities
700.74 878.38 883.13 1775.4 2618.49 3139.79 5989.59 16353 13247.7
1788
7
5.760696 4.859275 4.20336 4.3019 3.931033 3.75871 3.119823 1.7808
2.32981 1.84
232
▪ Quick Ratio (X)
Mar-08 Mar-09 Mar-
10
Mar-
11
15
Mar-16 Mar-17
Total
Current
Assets - 4036.75 4268.29 3712.11 7637.6 10293.37 11801.6 18686.46 29122 30864.6 32953.7
Inventory
-
772.77 975.7 1073.85 1489.5 2086.98 2577.76 3123.01 5668 6423.63 6832.81
Prepaid
Expense
/
0 0 0 0 0 0 0 0
0
Current
Liablities 700.74 878.38 883.13 1775.4 2618.49 3139.79 5989.59 16353 13247.7 17887
4.657905 3.74848 2.9874 3.463 3.134016 2.93772 2.598417 1.4342 1.84493 1.46032
▪ Inventory Turnover Ratio (X)
Mar-08 Mar-09 Mar-
10
Mar-
11
Mar-12 Mar-
13
Mar-14 Mar-
15
Mar-16 Mar-17
Total
Operating
Revenue
/ 3360.32 4279.52 3903.23 5727.9 8019.49 11299.9 16080.36 27433 28269.7 31308.1
Inventories
772.77 975.7 1073.85 1489.5 2086.98 2577.76 3123.01 5668 6423.63 6832.81
4.348409 4.386102 3.6348 3.8456 3.842629 4.3836 5.148994 4.8401 4.40089 4.58203

41 | P a g e
Dividend Payout Ratio (NP) (%)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
Dividend
Paid /
217.47 284.79 284.79 362.45 440.12 517.79 310.67 721.95 240.68 240.68
Net Profit
*100 1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.3
14.02 15.07 21.14 19.00 14.47 14.92 8.01 13.15 4.13 3.07
▪ Dividend Payout Ratio (CP) (%)
11
15
Mar-16 Mar-17
Total
Dividend
/ 217.47 284.79 284.79 362.45 440.12 517.79 310.67 721.95 240.68 240.68
Net
Profit
+
1550.91 1889.71 1347 1907 3042.17 3469.3 3879 5488
5830.4 7836.3
Non
cash
expense (
Dep &
Amotz )
*100 96.86 123.29 153.31 204.85 291.16 336.17 409.23 ###### 1,013.52 1,264.75
13.20 14.15 18.98 17.16 13.20 13.61 7.24 10.80 3.52 2.64
Total
Dividend
/ 217.47 284.79 284.79 362.45 440.12 517.79 310.67 721.95 240.68 240.68

42 | P a g e
▪ Earnings Retention Ratio (%)
11
15
Mar-
16
Mar-17
Net
Income
(Profit
After Tax
& Extra
Ordinary
Incomes)
- 1549.72 1878.01 1345.41 1910.6 3043.28 3475.87 3879 5488.2 5830.38 7836.3
Dividend
/
217.47 284.79 284.79 362.45 440.12 517.79 310.67 721.95 240.68 240.68
Net
Income
*100 1549.72 1878.01 1345.41 1910.6 3043.28 3475.87 3879 5488.2 5830.38 7836.3
85.96714 84.83554 78.8325 81.03 85.53797 85.1033 91.99098 86.845 95.872 96.9287
Cash Earnings Retention Ratio (%)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-13 Mar-
14
Mar-
15
Mar-
16
Mar-17
100 -
100 100 100 100 100 100 100 100
100 100
Dp Ratio (CP)
13.20 14.15 18.98 17.16 13.20 13.61 7.24 10.80
3.52 2.64453
86.80 85.85 81.02 82.84 86.80 86.39 92.76 89.20 96.48 97.36

43 | P a g e
(B)TREND ANALYSIS:
❖ PER SHARE RATIOS:
▪ BASIC EPS & DILUTED EPS
11
Mar-12 Mar-13 Mar-
14
Mar-
15
Mar-16 Mar-17
72.00 88.02 65.01 18.00 26.00 29.00 15.00 19.00 20.00 29.00
Comment:
Basic earnings per share is a rough measurement of the amount of a company's profit that can
be allocated to one share of its stock. Diluted EPS is a performance metric used to gauge the
quality of a company's earnings Per Share if all convertible securities were exercised.
Convertible securities are all outstanding convertible preferred shares, convertible
debentures, stock options (primarily employee-based) and warrants.
As we can see that in the year 2008 EPS was 72.00139276 then it went to 88.01630182 in
2009 and it was highest amongst all the years. After 2009 it went down to 15 in 2014.in 2017
basic eps and diluted eps stable again to 29.in 2017 net profit is higher compare to 2008 and
no.of share is higher compare to 2008.overall is good.

44 | P a g e
▪ CASH EPS
Mar-08 Mar-
09
Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
76.50 93.76 72.41 19.93 28.49 31.81 16.58 23.14 23.48 33.68
Comment:
Cash earnings per share (Cash EPS) is a measure of financial performance that looks at
the cash flow generated by a company on a per share basis. This differs from basic earnings
per share (EPS), which looks at the net income of the company on a per share basis. The
higher a company's cash EPS, the better it is considered to have performed over the period.
As we can see that in the year 2009 it was 93.75 (highest) and in 2014 16.58(lowest).sun
pharma try to get back to normal in 2017.

45 | P a g e
▪ Book Value [ExclRevalReserve]/Share (Rs.)
Comment:
Book value of an asset is the value at which the asset is carried on a balance sheet and
calculated by taking the cost of an asset minus the accumulated depreciation. Book value is
also the net asset value of a company, calculated as total assets minus intangible
assets (patents, goodwill) and liabilities. Book value is highest in 2010 and lowest in 2014.
Mar-
08
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
231.73 328.13 377.84 89.49 104.57 125.30 71.64 88.59 107.73 135.59

46 | P a g e
▪ Book Value [InclRevalReserve]/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
231.73 328.13 377.84 89.49 104.57 125.30 71.64 88.58 107.73 135.59
Comment:
Book value of an asset is the value at which the asset is carried on a balance sheet and
calculated by taking the cost of an asset minus the accumulated depreciation. Book value is
also the net asset value of a company, calculated as total assets minus intangible
assets (patents, goodwill) and liabilities. As we can see that the Book value of company is not
stable of sun pharma company.

47 | P a g e
▪ Dividend / Share(Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
10.10 13.26 13.74 3.42 3.76 4.33 1.20 2.50 0.83 0.89
Comment:
Dividend Per Share (DPS) is the total dividends paid out by a business, including
interim dividends, divided by the number of outstanding ordinary shares issued. A
company's DPS is usually derived using the dividend paid in the most recent quarter, which is
also used to calculate the dividend yield. The highest dividend paid by the company was in
the year 2010 and the lowest was in 2016 and 2017.

48 | P a g e
▪ Revenue from Operations/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
156.00 199.33 188.38 53.99 68.42 93.95 61.89 94.47 95.17 111.00
Comment:
Sales per share is a ratio that computes the total revenue earned per share over a 12-month
period. It is calculated by dividing total revenue earned in a fiscal year by the weighted
average of shares outstanding for that fiscal year. Highest 199 in 2009 but in 2017 decline to
110.99 which shows that company is less active in terms of business compare to the other
months.

49 | P a g e
▪ PBDIT/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
79.16 97.35 75.98 21.84 31.41 39.24 19.47 28.31 28.32 39.64
Comment:
PBDIT stands for Profit before depreciation and amortization, interests and tax. PBDIT is one
indicator of a company's financial performance and is used as a proxy for the earning
potential of a business. It does not show perfect figures of profits for the company.
As we can see that that PBDIT was between 75 to 100 per share from the year 2008 to
2010.but after 2010 company pbdit was not good till 2017.

50 | P a g e
▪ PBIT/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
74.66 91.60 68.58 19.91 28.92 36.43 17.89 24.17 24.84 34.96
Comment:
PBIT is an indicator of a company's profitability, calculated as revenue minus expenses,
excluding tax and interest. PBIT is also referred to as "operating earnings" and "operating
profit”. From 2008 to 2010, the company was earning good profits. After 2010 it dropped by
19.90 per share in 2011 and it in the year 2011 to 2017 it was almost stable between 15-40
per share..

51 | P a g e
▪ PBT/Share (Rs.)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
74.25 91.33 68.28 19.21 28.68 36.07 17.72 22.17 23.21 33.48
Comment:
Profit before tax (PBT) is a profitability measure that looks at a company's profits before the
company has to pay corporate income tax by deducting all expenses from revenue
including interest expenses and operating expenses except for income tax. Also referred to as
"earnings before tax".again pbt per share is not well and drastically change in 2011 till 2017.

52 | P a g e
▪ Net Profit/Share (Rs.)
11
Mar-12 Mar-13 Mar-
14
Mar-
15
Mar-16 Mar-17
72.00139 88.0163 65.0087 17.999 25.99923 29.0006 15 19 19.9999 28.9997
Comment:
The net asset value per share (NAVPS), also referred to as the book value per share, is an
expression for net asset value that represents the value per share of a mutual fund, exchange-
traded fund (ETF) or a closed-end fund.sun pharma net profit per share is highest in 2009.but
in 2014 lower.company increase theire navps after 2014 again and in 2017 navps is 28.

53 | P a g e
❖PROFITABILITY RATIOS:
▪ PBDIT Margin (%)
11
15
Mar-16 Mar-17
50.73951 48.83749 40.3333 40.411 45.82237 41.5423 31.30894 29.805 29.2033 34.2161
Comment:
PBDIT margin is a measurement of a company's operating profitability as a percentage of its
total revenue. It is equal to earnings before interest, tax, depreciation & Amortization divided
by total revenue. Because PBDIT excludes interest, depreciation, amortization and taxes,
PDBIT margin can provide an investor, business owner or financial professional with a clear
view of a company's operating profitability and cash flow. 2008 has a highest pbdit margin
but in 2017 company pbdit is little lower in 10 years.

54 | P a g e
▪ PBIT Margin (%)
11
15
Mar-16 Mar-17
47.85705 45.95656 36.4055 36.834 42.19171 38.5673 28.76403 25.45 25.6181 30.1764
Comment:
This indicator gives information on a company's earnings ability. Increase in EBIT is mainly
due to growth of net revenue, good cost control and strong productivity, decrease in EBIT
margin largely results from reduction in revenue and higher operating costs. EBIT margin is
most useful when compared against other companies in the same industry. The higher EBIT
margin reflects the more efficient cost management or the more profitable business. If no
positive EBIT margin can be generated over a longer period, then the company should
rethink the business model. As we can see that 10 years data in 2008 pbit is good but
drastically decrease in 2017.

55 | P a g e
▪ PBT Margin (%)
11
15
Mar-16 Mar-17
47.59934 45.81986 36.2479 35.544 41.84007 38.1853 28.48923 23.34 23.9312 28.8994
Comment:
profit margin tax is a company's earnings before tax as a percentage of total sales
or revenues. The higher the profit margin tax, the more profitable the company. The trend of
the profit margin tax is as important as the figure itself, since it provides an indication of
which way the company's profitability is headed. Look at the data 10 years data 2017 data is
in decreasing.

56 | P a g e
▪ Net Profit Margin (%)
11
15
Mar-16 Mar-17
46.15364 44.15705 34.5094 33.3 37.93471 30.7025 24.12259 20.006 20.6241 25.0296
Comment:
Net profit margin (also called profit margin) is the most basic profitability ratio that measures
the percentage of net income of an entity to its net sales. It represents the proportion of sales
that is left over after all relevant expenses have been adjusted. It can also be used to
determine the profitability potential of different industries. While companies in some
industries are able to generate high net profit margin, other industries offer very narrow
margins. It depends on the extent of competition, elasticity of demand, production
differentiation, etc. of the relevant product or market. As per 10 year data net profit margin is
decreasing.company’s net profit is in decreasing trends.

57 | P a g e
▪ Return on Net worth / Equity (%)
11
15
Mar-16 Mar-17
31.07127 26.82373 17.2052 20.113 24.8629 23.1448 20.93933 21.447 18.5656 21.3875
Comment:
Return on Net Worth is used in finance as a measure of a company’s profitability. It reveals
how much profit a company generates with the money that the equity shareholders have
invested. Therefore, it is also called ‘Return on Equity’ (ROE). This ratio is useful for
comparing the profitability of a company to that of other firms in the same industry. Highest
in 2008 and owest in 2017.but slowly decreasing.

58 | P a g e
Return on Capital Employed (%)
Mar-08 Mar-09 Mar-
10
Mar-
11
Mar-12 Mar-
13
Mar-14 Mar-
15
Mar-
16
Mar-
17
28.49544 25.58825 16.4488 17.923 21.95639 19.555 16.59023 16.796 14.2302 18.0049
Comment:
The return on capital employed ratio shows how much profit each rupee of employed capital
generates. Obviously, a higher ratio would be more favourable because it means that more
rupees of profits are generated by each rupee of capital employed.
Investors are interested in the ratio to see how efficiently a company uses its capital
employed as well as its long-term financing strategies. Companies returns should always be
high than the rate at which they are borrowing to fund the assets.

59 | P a g e
▪ Return on Assets (%)
11
15
Mar-16 Mar-17
25.24514 22.86829 14.8475 15.36 18.46649 16.6147 13.20699 11.194 10.7533 12.7606
Comment:
Return on assets (ROA) is an indicator of how profitable a company is relative to its total
assets. ROA gives an idea as to how efficient management is at using its assets to generate
earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is
displayed as a percentage. Sometimes this is referred to as "return on investment". Roa is
highest in 2008 but lowest in 2016 then try to recover return on assets.

60 | P a g e
Asset Turnover Ratio (%)
11
Mar-12 Mar-
13
Mar-14 Mar-
15
Mar-16 Mar-
17
54.69805 51.78854 43.0246 46.127 48.67968 54.115 54.74944 55.955 52.1393 50.982
Comment:
Asset turnover ratio is the ratio of the value of a company’s sales or revenues generated
relative to the value of its assets. The Asset Turnover ratio can often be used as an indicator
of the efficiency with which a company is deploying its assets in generating revenue.assets
turnover ratio is actually between 43 to 55 percentage.it was a not a bigger difference in that
ratio.

61 | P a g e
❖LIQUIDITY RATIOS:
▪ Current Ratio (X)
11
15
Mar-16 Mar-17
5.760696 4.859275 4.20336 4.3019 3.931033 3.75871 3.119823 1.7808 2.32981 1.84232
Comment:
A liquidity ratio that measures a companys ability to pay short term obligations.the higher the
current ratio,the more capable the company is of paying its obligations.if it is greater than 2
very good but less than 2 is not good.here,company has a normal variation but it will not
affect on liquidity of sun pharma.

62 | P a g e
▪ Quick Ratio (X)
Comment:
The usefulness of the ratio lies in the fact that it is widely accepted as the best available test of
the liquidity position of the firm.
The quick asset ratio is superior to the current asset ratio. Generally, a quick asset ratio of 1:1
is considered satisfactory as firm can easily meet all current claims. As we can see in the graph
quick ratio is stable and all the year it is grater than 1 from 2008 to 2017.
Mar-08 Mar-09 Mar-
10
Mar-
11
15
Mar-16 Mar-17
4.657905 3.74848 2.9874 3.463 3.134016 2.93772 2.598417 1.4342 1.84493 1.46032

63 | P a g e
▪ Inventory Turnover Ratio (X)
Mar-08 Mar-09 Mar-
10
Mar-
11
Mar-12 Mar-
13
Mar-14 Mar-
15
Mar-16 Mar-17
4.348409 4.386102 3.6348 3.8456 3.842629 4.3836 5.148994 4.8401 4.40089 4.58203
Comment:
In general, low inventory turnover ratios indicate a company is carrying too much inventory,
which could suggest poor inventory management or low sales. Excess inventory ties up a
company's cash and makes the company vulnerable to drops in market prices. Conversely,
high inventory turnover ratios may indicate a company is enjoying strong sales or practicing
just-in-time inventory methods. High inventory turnover also means a company is replenishing
cash quickly and has a lower risk of becoming stuck with obsolete inventory. However, higher
is not always better, and exceptionally high inventory turnover may indicate a company is
running out of items frequently or making ineffective purchases and therefore losing sales to

64 | P a g e
competitors. So overall inventory ratio is better from 2008 to 2017.pharmaceuticals compamy
must have it.
▪ Dividend Payout Ratio (NP) (%)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
14.02 15.07 21.14 19.00 14.47 14.92 8.01 13.15 4.13 3.07
Comment:
The dividend pay-out ratio provides an indication of how much money a company is
returning to shareholders, versus how much money it is keeping on hand to reinvest in
growth, pay off debt or add to cash reserves. This latter portion is known as retained earnings.
2017 is not good for share holders there is not a proper dividend for share holders.

65 | P a g e
▪ Dividend Payout Ratio (CP) (%)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
13.20 14.15 18.98 17.16 13.20 13.61 7.24 10.80 3.52 2.64
Comment:
The dividend pay-out ratio provides an indication of how much money a company is
returning to shareholders, versus how much money it is keeping on hand to reinvest in
growth, pay off debt or add to cash reserves. This latter portion is known as retained earnings
including non-cash expenses. 2010 is good for shareholders but 2017 is bad for any share
holder

66 | P a g e
▪ Earnings Retention Ratio (%)
11
15
Mar-
16
Mar-17
85.96714 84.83554 78.8325 81.03 85.53797 85.1033 91.99098 86.845 95.872 96.9287
Comment:
The percentage of a publicly-traded company's post-tax earnings that are not paid in
dividends. Most earnings retained are re-invested into the company's operations. Tracking
year-on-year earnings retention ratios is important to fundamental analysis to investigate
whether a company is increasing or decreasing its rate of re-investment. Average 85 to 95
percentage earnings retation ratio.

67 | P a g e
▪ Cash Earnings Retention Ratio (%)
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
86.80 85.85 81.02 82.84 86.80 86.39 92.76 89.20 96.48 97.36
Comment:
The cash earning retention ratio is the proportion of earnings kept back in the business
as retained earnings. retention ratio refers to the percentage of net income that is retained to
grow the business, rather than being paid out as dividends. It is the opposite of the pay-
out ratio, which measures the percentage of earnings paid out to shareholders as dividends. .
From 2008 to 2015 avarage is 87%. 2016-2017 growing to the 96 or 97% so it was kept back
to business,beneficial for the sun pharma company business.

68 | P a g e
CONCLUSION
• The Net Profit Margin (%) of the company is decreasing over the study period. Hence
the organization will never have the good control over the operating expenses.
• Earnings per share is the same as any profitability or market prospect ratio. Higher
earnings per share is always better than a lower ratio because this means the company
is more profitable and the company has more profits to distribute to its shareholders.
But for sun pharma company’s eps decreasing in last 5 years.Although many
investors don't pay much attention to the EPS, a higher earnings per share ratio often
makes the stock price of a company rise. Since so many things can manipulate this
ratio, investors tend to look at it but don't let it influence their decisions drastically.
• The entire company’s accounts run on several accounting policies which have been
mentioned earlier
• As we can see from all the ratios net profit margin,return on capital employed and net
asset turnover ratios are profitable for future aspects.they can again invest in research
and development.
• current ratio and quick ratio are showing effectiveness in liquidity as in all the years
current ratio is greater than or equal to the standard 2:1 and quick ratio is also greater
than or equal to the standard 1:1 ratio. The firm is maintaining cash in hand with
company. which shows firm is able to pay its short term obligations.
• Company’s yearly turnover seems good so they conduct a several no of corporate
social responsibility as it is compulsory.
• R&D investments for the year were 23 Billion it means future planning for sun
pharma is good.
• Consolidated ratios is from overall worldclass business from sun pharma so it can be
affected by different state ,different rules applied,different response.
• overall 10 years of trend analysis is increasing for sun pharma company but compare
to 2008 there are decrease(amounts) in some ratios.
• No. 1 pharma company in India with 8.6% market share and 30 brands in the
country’s top 300 brands.

69 | P a g e
• Revenue from Indian business increased by 8% to 77,491 Million
in FY17.and 74%of sales from international market.
• Return on assets seems high in the begging of the year but then it again it went
down.in 2008 roa is 25 then in 2017 roa is 12.76.(down)
• The inventory turnover ratio manage perfectly from 2008 to 2017.pharmaceuticals
company’s have so many softwares for manage this type of inventory management
system for overall company benifits and provide all the material just in time.
• Company’s yearly turnover seems good so they conduct a several no of corporate
social responsibility as it is compulsory.
• Company’s own capital is consistent so they didn’t borrow.
It has been concluded that company is holding a good position in the market.

70 | P a g e
REFRENCES
➢ www.moneycontrol.com
➢ www.sunpharma.com
➢ www.ibef.org

Sun pharma financial analysis 2008-2017

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