LAKSHMIBAI COLLEGE

DELHI UNIVERSITY

CORPORATE ACCOUNTING
ASSIGNMENT ON
CIPLA LTD.

NAME : PRIYA SINGH

COURSE : B. COM (HONS)
ROLL NO. : 22504029
Established in 1935 , Cipla is a global pharmaceutical company
focused on agile and sustainable growth with a firm commitment to
make medicines accessible and available to those in need . Our
product portfolio spans complex generics as well as drugs in the
respiratory , anti - retroviral , urology , cardiology , anti - infective ,
CNS , and various other key therapeutic segments . With a rich
portfolio , we are deepening our presence in the home markets of
India , as well as South Africa , North America , and other key
regulated and emerging markets . Our 47 manufacturing sites
around the world produce 50+ dosage forms and 1,500+ products
using cutting - edge technology platforms to cater to our 86 markets.
Cipla is the third - largest pharmaceutical Company in India and the
third largest in the private pharmaceutical market of South Africa
(IQVIA , March 2022 ) . We are the second largest Indian exporter to
emerging markets³ and also among the most dispensed generic
players in the US .
DEBT EQUITY RATIO

The Debt to Equity ratio (also called the “debt-equity ratio”, “risk ratio”, or
“gearing”), is a leverage ratio that calculates the weight of total debt and
financial liabilities against total shareholders’ equity.

Formula
Short formula:
Debt to Equity Ratio = Total Debt / Shareholders’ Equity

Long formula:
Debt to Equity Ratio = (short term debt + long term debt + fixed payment
obligations) / Shareholders’ Equity

IDEAL RATIO
The ideal debt to equity ratio is 2:1. This means that the debt be more than
twice the equity because it becomes riskier to pay back and hence there is a
fear of bankruptcy.

OBJECTIVE & SIGNIFICANCE

Debt-equity ratio depicts the financial leverage availed by the business and is
an important measure of the solvency of the business. Creditors use the debt-
equity ratio to decide whether further credit should be provided to the
business or not since it helps them judge if the company is about to go
bankrupt in the near future. Investors use the debt-equity ratio to determine
the firm’s capacity to generate a return on investment made by them.
Management uses this ratio to study the capital structure of the firm.
 DEBT TO EQUITY RATIO OF CIPLA LTD.

S. NO. YEAR ENDING RATIO DEBT EQUITY RATIO

1. Mar-23 0.02:1 520.36/23,407.78

2. Mar-22 0.04:1 824.14/20,841.69

3. Mar-21 0.08:1 1537.48/18,326.53

4. Mar-20 0.18:1 2816.43/15,763.00

5. Mar-19 0.29:1 4316.23/15,012.28

DEBT TO EQUITY GRAPH PRESENTATION

CIPLA LTD.
0.35

0.30

0.25

0.20

0.15 RATIO

0.10

0.05

0.00
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
INTERPRETATION

 A low debt-to-equity ratio means the equity of the

company’s shareholders is bigger, and it does not require
any money to finance its business and operations for
growth.
 Debt to Equity Ratio 0.02 of Cipla Ltd. indicates to run a
business company uses lower amount of long-term debt.
 Debt to Equity Ratio of CIPLA drastically fell by -35.79 %
this year.
 Debt to Equity Ratio with value of 0.29 was highest in Year
Mar-19 in last Five Years.
 Debt to Equity Ratio of CIPLA trending down for at least
three Years.
 Latest Debt to Equity Ratio with value of 0.02 is lower
than Average Debt to Equity of 0.13 in last five years.
This data can be easily copy pasted into a Microsoft Excel sheet PRINT

Cipla Previous Years »

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 161.43 161.36 161.29 161.25 161.14
Total Share Capital 161.43 161.36 161.29 161.25 161.14
Reserves and Surplus 24,476.66 22,315.35 19,730.58 17,207.54 15,578.07
Total Reserves and Surplus 24,476.66 22,315.35 19,730.58 17,207.54 15,578.07
Employees Stock Options 0.00 36.84 35.69 34.17 42.70
Total Shareholders Funds 24,638.09 22,513.55 19,927.56 17,402.96 15,781.91
NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 36.13 55.96 104.91 112.97 42.84
Other Long Term Liabilities 140.78 72.06 143.36 165.30 117.86
Long Term Provisions 81.73 78.92 95.97 105.14 108.12
Total Non-Current Liabilities 258.64 206.94 344.24 383.41 268.82
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00 6.06 0.00
Trade Payables 1,594.12 1,378.93 1,495.49 1,612.12 1,481.35
Other Current Liabilities 458.88 718.84 575.89 459.61 458.18
Short Term Provisions 646.74 630.79 620.56 541.50 428.55
Total Current Liabilities 2,699.74 2,728.56 2,691.94 2,619.29 2,368.08
Total Capital And Liabilities 27,596.47 25,449.05 22,963.74 20,405.66 18,418.81
ASSETS
NON-CURRENT ASSETS
Tangible Assets 4,313.25 3,111.73 3,673.15 3,818.67 3,992.13
Intangible Assets 0.00 215.96 269.51 205.87 135.33
Capital Work-In-Progress 0.00 169.22 275.04 255.73 241.32
Intangible Assets Under Development 0.00 44.62 80.07 64.00 56.01
Other Assets 0.00 63.35 123.79 126.44 61.85
Fixed Assets 4,313.25 3,604.88 4,421.56 4,470.71 4,486.64
Non-Current Investments 9,137.91 8,934.88 7,720.99 6,355.32 3,803.61
Long Term Loans And Advances 131.09 0.00 43.37 41.89 207.91
Other Non-Current Assets 643.09 884.66 585.64 510.68 442.00
Total Non-Current Assets 14,225.34 13,424.42 12,771.56 11,378.60 8,940.16
CURRENT ASSETS
Current Investments 2,771.44 2,038.80 2,004.84 834.43 2,011.58
Inventories 3,277.36 3,199.05 3,085.81 3,021.36 2,868.41
Trade Receivables 2,888.49 1,939.62 3,035.37 3,560.27 3,168.73
Cash And Cash Equivalents 966.46 1,428.03 874.80 523.07 174.56
Short Term Loans And Advances 772.73 0.89 1.90 4.49 5.04
OtherCurrentAssets 2,694.65 3,418.24 1,189.46 1,083.44 1,250.33
Total Current Assets 13,371.13 12,024.63 10,192.18 9,027.06 9,478.65
Total Assets 27,596.47 25,449.05 22,963.74 20,405.66 18,418.81
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 0.00 975.31 1,972.95 3,121.80 4,801.99
CIF VALUE OF IMPORTS
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 0.00 1,780.34 2,091.06 590.26 1,904.13
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign
- - - - -
Currency
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - 5,709.43 6,805.06 5,517.45 5,740.95
Other Earnings - 135.97 - 86.15 199.06
BONUS DETAILS
Bonus Equity Share Capital - 151.66 151.66 151.66 151.66
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted
- - - - -
Market Value
Non-Current Investments Unquoted
- 8,934.88 7,720.99 6,355.32 3,803.61
Book Value
CURRENT INVESTMENTS
Current Investments Quoted Market
- - - - -
Value
Current Investments Unquoted Book
- 2,038.80 2,004.84 834.43 2,011.58
Value

Source : Dion Global Solutions Limited