1. Financial Analysis of NovartisFinancial Analysis of Novartis
Analysed by:
Vipul Patil (20)
Poonam Mahajan (13)
Nilesh Visave (10)
Jaimy Shah (07)
Deepali Jukar (03)

2. COMPANY PROFILECOMPANY PROFILE
 Novartis has been in India since 1947.
 Its operates in India through four entities namely Novartis India
Limited, listed on the Mumbai Stock Exchange, Novartis Healthcare
Private Limited, Sandoz Pvt. Ltd and Chiron-Behring Vaccine Pvt.
Ltd .
 Nearly 4500 people are working at Novartis.
 In India Novartis has a presence in pharmaceuticals, generics,
Vaccines, OTC, eye care and Animal Health.

3. CURRENT RATIOCURRENT RATIO
3.5
4
4.5
5
2009 2010 2011
4.12
4.4
4.83
CR
• The ratio shows satisfactory ability of the firm to meet its current liabilities.
•A firm has liquidity and its current assets in form of cash and debtors is more
than inventories.
•Also Loans and advances given were eventually high in the year 2010 and 2011

4. QUICK RATIOQUICK RATIO
3.62
4.09
4.25
3.2
3.4
3.6
3.8
4
4.2
4.4
2009 2010 2011
QR
•Quick ratio seems satisfactory.
•Significant increase in 2011 due to increase in cash and bank balance

5. DEBT EQUITY RATIODEBT EQUITY RATIO
•Dependence on outsiders funds has decreased in 2011 by unsecured loans.
•Unsecured loans decreased, reserves and surplus was high than 2009-2010.
•Interest gain due to inter-corporate deposits were made in 2009 and 2010.
•Received tax free dividends
•Thus the company has as lesser risk.

6. PROPRIETARY RATIOPROPRIETARY RATIO
•Share holders funds have been increasing showing a good hold on share
holders.
•In 2011, large % of total assets were financed by the share holders funds.
•As company was growing Reserves & surplus were increased throughout.
•HSBC mutual fund sold (all)---- results into decrease in TA in 2011

7. GROSS PROFIT MARGINGROSS PROFIT MARGIN
RR
18.28%
20.33% 20.66%
17.00%
18.00%
19.00%
20.00%
21.00%
2009 2010 2011
GROSS PROFIT
Gross Profit Margin:
•In 2010-2011, gross profit had increased due to increase in sales.
•Serves for paying additional expenses and future savings.

8. NET PROFITNET PROFIT
•It show the profitability in the business.
•Management working efficiently.

9. RETURN ON CAPTIALRETURN ON CAPTIAL
EMPLOYEDEMPLOYED
24.59%
29.93% 30.86%
0.00%
10.00%
20.00%
30.00%
40.00%
2009 2010 2011
ROCE
A higher value of return on capital employed is favourable indicating that the
company generates more earnings per rupee of capital employed.
Fringe benefit tax (employment benefit tax) was nil in 2010

10. EARNING PER SHAREEARNING PER SHARE
32.45
36.29
45.89
0
10
20
30
40
50
2009 2010 2011
EPS
The EPS of Novartis India is increasing which indicates it is increasing its
profitability .

11. TOTAL AND FIXED ASSESTTOTAL AND FIXED ASSEST
TURNOVER RATIOTURNOVER RATIO
In 2011, loans and advances increase (CA).
Investments (FA) were less in 2011 as compare to 2010.

12. 2009 2010 2011
Shareholders’ Funds 5,147,405 5,934,606 7,029,876
Capital 159,804 159,804 159,804
Reserves and Surplus 4,987,601 5,774,802 6,870,072
Unsecured Loans 2,980 2,690 1,971
fixed asset 2009 2010 2011
Gross Block 227,999 233,475 241,529
Less: Depreciation/Amortisation 141,758 155,522 161,963
Net Block 86,241 77,953 79,566
Capital Work-in-Progress 672 7,552 7,319
86,913 85,505 86,885
Investments 233,929 157,505 412
Deferred Taxation 138,886 154,959 157,645
Current Assets, Loans and Advances 6,233,433 7,207,456 8,595,828
Inventories 501,026 513,750 536,116
Sundry Debtors 454,854 463,228 603,824
Cash and Bank Balances 537,536 571,888 884,656
Loans and Advances 4,740,017 5,658,590 6,571,232
Less: C urrent Liabilities and Provisions 1,542,776 1,668,129 1,808,923
Liabilities 892,400 1,144,632 996,914
Provisions 650,376 664,291 671,215
Net Current Assets 4,690,657 5,539,327 6,786,905
NET SALES 5,994,802 6,241,030 7,086,426
Balance Sheet as at 31st March 2011

13. 2009 2010 2011
Inventories 501,026 513,750 536,116
Sundry Debtors 454,854 463,228 603,824
Cash and Bank Balances 537,536 571,888 884,656
Loans and Advances 4,740,017 5,658,590 6,571,232
Current Assets, Loans and Advances 6,233,433 7,207,456 8,595,828
Buildings 25,200 24,217 22,429
Plant and Machinery 35,348 29,383 33,527
Furniture and Fittings 15,056 14,087 16,414
Trade Marks@ 1,929 1,492 1,121
Vehicles 8,708 8,774 6,075
Capital Workin- 672 7,552 7,319
Progress (including
advances for capital
expenditure)
Total fixedassets 86,913 85,505 86,885
Total asset 6,320,346 7,292,961 8,682,713
COMMON SIZE STATEMENT B/S (ASSETS)

14. 2009 2010 2011
Inventories 7.93 7.04 6.17
Sundry Debtors 7.20 6.35 6.95
Cash and Bank Balances 8.50 7.84 10.19
Loans and Advances 75.00 77.59 75.68
Current Assets, Loans and
Advances 98.62 98.83 99.00
Buildings 0.40 0.33 0.26
Plant and Machinery 0.56 0.40 0.39
Furniture and Fittings 0.24 0.19 0.19
Trade Marks@ 0.03 0.02 0.01
Vehicles 0.14 0.12 0.07
Capital Workin- 1.36 0.10 0.08
Progress (including
advances for capital
expenditure)
Total fixedassets 1.38 1.17 1.00
Total asset 100.00 100.00 100.00
COMMON SIZE STATEMENT B/S (ASSETS)

15. Packaging
material,
WIP,RM
FG.
Deposit
A/C high

16. Advances
for capital
expenditure
were high
2011
Depreciation and Amortisation
on assets

17. Common size statement B/S (2)Common size statement B/S (2)
2009 2010 2011
Total current liabilities 27.32 25.36 23.09
Long term debt 0.05 0.04 0.03
Total liability 27.38 25.40 23.09
Retained earnings 42.42 46.78 51.76
Shareholders equity 2.83 2.43 2.04
Total liability and shareholders
Equity 100.00 100.00 100.00

18. Balance Sheet as at 31st March 2011
2009 2010 2011
Shareholders’ Funds 5,147,405 5,934,606 7,029,876
Capital 159,804 159,804 159,804
Reserves and Surplus 4,987,601 5,774,802 6,870,072
Unsecured Loans 2,980 2,690 1,971
fixed asset 2009 2010 2011
Gross Block 227,999 233,475 241,529
Less: Depreciation/Amortisation 141,758 155,522 161,963
Net Block 86,241 77,953 79,566
Capital Work-in-Progress 672 7,552 7,319
86,913 85,505 86,885
Investments 233,929 157,505 412
Deferred Taxation 138,886 154,959 157,645
Current Assets, Loans and Advances 6,233,433 7,207,456 8,595,828
Inventories 501,026 513,750 536,116
Sundry Debtors 454,854 463,228 603,824
Cash and Bank Balances 537,536 571,888 884,656
Loans and Advances 4,740,017 5,658,590 6,571,232
Less: Current Liabilities and Provisions 1,542,776 1,668,129 1,808,923
Liabilities 892,400 1,144,632 996,914
Provisions 650,376 664,291 671,215
Net Current Assets 4,690,657 5,539,327 6,786,905
NET SALES 5,994,802 6,241,030 7,086,426

19. Trend analysis B/STrend analysis B/S2009 2010 2011
Shareholders’ Funds 100 115.29 136.57
Capital 100 100.00 100.00
Reserves and Surplus 100 115.78 137.74
Unsecured Loans 100 90.27 66.14
fixed asset 100 100.05 100.10
Gross Block 100 102.40 105.93
Less:
Depreciation/Amortisation 100 109.71 114.25
Net Block 100 90.39 92.26
Capital Work-in-Progress 100 1123.81 1089.14
100 98.38 99.97
Investments 100 67.33 0.18
Deferred Taxation 100 111.57 113.51
Current Assets, Loans and
Advances 100 115.63 137.90
Inventories 100 102.54 107.00
Sundry Debtors 100 101.84 132.75
Cash and Bank Balances 100 106.39 164.58
Loans and Advances 100 119.38 138.63
Less: C urrent Liabilities and
Provisions 100 108.13 117.25
Liabilities 100 128.26 111.71
Provisions 100 102.14 103.20
Net Current Assets 100 118.09 144.69
NET SALES 100 104.11 118.21

20. Advances
for capital
expenditure
were high
2011

22. P & L Account 2009 2010 2011
Income
gross sales 6,025,230 6,252,303 7,100,668
Excise Duty on Sales 30,428 11,273 14,242
Net Sales 5,994,802 6,241,030 7,086,426
Other Income 659,985 779,584 1,005,879
Income 6,654,787 7,020,614 8,092,305
Expenditure
Materials Cost 6,654,787 2,506,749 2,733,088
Personnel Cost 704,855 2,506,749 2,733,088
Other Expenses 1,756,234 1,848,265 2,081,584
Interest 7,059 3,179 2,802
Depreciation/Amortisation 26,884 22,513 23,823
Less: Cost of services shared 46,759 5,956 1,873
Expenditure 4,972,428 5,228,565 5,905,061
Profit before Taxation 1,729,118 1,798,005 2,189,117
Provision for Taxation 692,021 638,113 722,391
Profit afterTaxation 1,037,097 1,159,892 1,466,726
previous year balance 1,357,829 1,917,291 2,588,503
2,394,926 3,077,183 4,055,229
Appropriations 477,635 488,680 518,129
Balance carried to Balance Sheet 1917291.00 2588503.00 3537100.00
Earnings per Share 32.45 36.29 45.89
P&L STATEMENT 2009-2011

23. 2010 2011
gross sales 103.7687026 117.848912
Excise Duty on Sales 37.04811358 46.80557381
Net Sales 104.1073583 118.2095088
Other Income 118.1214725 152.4093729
Income 105.4972007 121.6013
Materials Cost 37.66835813 41.0695038
Personnel Cost 355.6403799 387.7518071
Other Expenses 105.240247 118.5254357
Interest 45.03470747 39.69400765
Depreciation/Amortisation 83.74125874 88.61404553
Less: Cost of services shared 12.73765478 4.005645972
Expenditure 105.1511455 118.7560886
Profit before Taxation 103.9839386 126.6031005
Provision for Taxation 92.21006299 104.3885951
Profit after Taxation 111.8402618 141.4261154
previous year balance 141.2026846 190.6354187
128.4876025 169.3258581
Appropriations 102.3124352 108.4780219
Balance carried to Balance Sheet 135.0083529 184.4842541
Earnings per Share 111.8335901 141.4175655
Trend Analysis P/L (1)2009-2011

25. COMMON SIZE STATMENT P/LCOMMON SIZE STATMENT P/L
2009 2010 2011
Gross sales 100.51 100.18 100.20
Excise Duty on Sales 0.51 0.18 0.20
Net Sales 100.00 100.00 100.00
Other Income 11.01 12.49 14.19
Income 111.01 112.49 114.19
2009 2010 0.00
Materials Cost 111.01 40.17 38.57
Personnel Cost 11.76 40.17 38.57
Other Expenses 29.30 29.61 29.37
Interest 0.12 0.05 0.04
Depreciation/Amortisati
on 0.45 0.36 0.34
Less: Cost of services
shared 0.78 0.10 0.03
Expenditure 82.95 83.78 83.33
2009 2010 0.00
Profit before Taxation 28.84 28.81 30.89
Provision for Taxation 11.54 10.22 10.19
Profit after Taxation 17.30 18.58 20.70
previous year balance 22.65 30.72 36.53
2009 2010 57.23
Appropriations 7.97 7.83 7.31
0.00
Balance carried to
Balance Sheet 31.98 41.48 49.91

27. Material cost
decreased

30. Share holding
Share holding pattern as
on : 30/06/2013 31/05/2013 31/03/2013
Face value 5 5 5
No. Of Shares % Holding No. Of Shares
%
Holding
No. Of
Shares
%
Holding
Promoter's holding
Foreign Promoters 23970597 75 23970597 75 24424802 76.42
Sub total 23970597 75 23970597 75 24424802 76.42
Non promoter's holding
Institutional investors
Banks Fin. Inst. and
Insurance 296745 0.93 296745 0.93 296745 0.93
FII's 746256 2.33 705368 2.21 658549 2.06
Sub total 1088899 3.41 1002986 3.14 973479 3.05
Other investors
Private Corporate Bodies 1020645 3.19 1235778 3.87 739435 2.31
NRI's/OCB's/Foreign
Others 171734 0.54 162184 0.51 162217 0.51
Others 1444 - 1444 - 1444 -
Sub total 1193613 3.73 1399196 4.38 902886 2.82
General public 5707478 17.86 5587808 17.48 5659420 17.71
Grand total 31960587 100 31960587 100 31960587 100