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TITLE OF THE PROJECT :

“A STUDY ON FINANCIAL

STATEMENTS ANALYSIS AT CIPLA”.

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INTRODUCTION
Financial analysis can be referred as a process of understanding the risk and profitability
of a company by analyzing reported financial info, especially annual and quarterly
reports. Putting another way, financial analysis is a study about accounting ratios among
various items included in the balance sheet. These ratios include asset utilization ratios,
profitability ratios, leverage ratios, liquidity ratios, and valuation ratios. Moreover, financial
analysis is a quantifying method for determining the past, current, and prospective
performance of a company.

Advantages of Financial analysis

The different advantages of financial analysis are listed below:

● The most important benefit if financial analysis is that it provides an idea to the
investors about deciding on investing their funds in a particular company.
● Another advantage of financial analysis is that regulatory authorities like IASB
can ensure the company following the required accounting standards.
● Financial analysis is helpful to the government agencies in analyzing the taxation
owed to the firm.
● Above all, the company is able to analyze its own performance over a specific
time period.

Financial analysis are prepared primarily for decision making. They play a dominant role
in setting the framework of managerial decisions. But the information provided in the
financial analysis is not an end in itself as no meaningful conclusions can be drawn from
these statements alone. However, the information provided in the financial analysis is of
immense use in making decisions through analysis and interpretation of financial
analysis. Financial analysis ‘the process of identifying the financial strengths and
weaknesses of the firm by properly establishing relationship between the items of the
balance sheet and the profit and loss account’. There are various methods or techniques
used in analyzing Financial analysis, Financial analysis are an important source of
information for evaluating the performance and prospects of firm, if properly analyzed and
interpreted these statements can provide valuable insights into firm’s performance.
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OBJECTIVES OF THE STUDY

The main objective of the project is to analyze the financial analysis of the company
using the financial analysis comparative and ratio analysis for this purpose of analysis.

The following are main objectives of the study.

● To determine the financial analysis and weakness of the firm.

● To determine the short –term solvency ratio of the firm.

● To diagnose the information contained to financial analysis so as to judge the

● profitability and fondness of the firm.

● To establish relationship between various figures or the income statement and balance
sheet.
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RESEARCH METHODOLOGY

NATURE OF THE STUDY :

● Nature of Financial analysis study to diagnose the information
containing financial statement.

● Financial analyst analyses the financial analysis with various tools of

analysis before commanding upon the financial health of the firm

● Significance and meaning of the financial analysis

● The nature of the study of financial statement analysis involves

examining and interpreting financial statements to evaluate the
financial health, performance, and future prospects of a business or
organization.
● So as to judge the profitability and financial position of the firm CIPLA

● Essential to bring out the history of CIPLA

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SCOPE OF THE STUDY :

Analysis of financial statement can be undertaken by different persons and
for different
purposes, therefore, the scope of the AFS may be varying from one
situation
to another.
However, the following are some the techniques of the AFS:

a)Comparative Financial analysis.

b)Common-size financial analysis.

c)Trend percentage analysis.

d)Statement of changes in financial position.

e)Cost-volume-profit relations, and

f)Ratio analysis and others.

The last technique i.e., the ratio analysis is the most common,
comprehensive and powerful tool of the AFS.

The importance of ratio analysis lies in the fact that it presents facts on a
comparative basis. As such, this study focuses only on this (ratio) analysis.
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DATA COLLECTION METHODS

Primary data &Secondary data

a. Primary data
The Primary data are those information’s, which are collected afresh and
for the first time, and thus happen to be original in character.

b. Secondary Data:
The secondary data collected from the different sites, broachers,
newspapers, company offer document, different books and through
suggestions from the project guide and from faculty members of our
college.

Company Name : CIPLA LTD

Source of Data : Secondary Data

Duration of the study : 45 Days

Period of the Study : 2023-2024

The source of Secondary data are Annual Reports, browsing Internet,

through magazines.

It includes data gathered from the annual reports of CIPLA LTD.

Articles are collected from official website of CIPLA LTD.
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TOOLS FOR ANALYSIS :

1. Descriptive statistics: Means, frequencies, and percentages
will be used to summarize the data.

2. Inferential statistics: Regression analysis and correlation

analysis will be used to test the hypotheses.

3. Content analysis: Thematic analysis will be used to analyze the

qualitative data from the in-depth interviews.

4.Comparative financial statemente

5.Common-size financial statements

6.Trend percentage analysis.

7.Statement of changes in financial position

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CHAPTERIZATION
S.NO CHAPTER

1. CHAPTER-I

. INTRODUCTION

. NEED OF THE STUDY

. SCOPE OF THE STUDY

. OBJECTIVES OF THE STUDY

. METHODOLOGY OF THE STUDY

. LIMITATIONS OF THE STUDY

2. CHAPTER-II
. LITERATURE REVIEW

3. CHAPTER-III

. INDUSTRY AND COMPANY PROFILE

4. CHAPTER-IV

. DATA ANALYSIS AND INTERPRETATION

5. CHAPTER-V

FINDINGS

SUGGESTION & CONCLUSION

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BIBLIOGRAPHY
https://www.cipla.com/investors/annual-reports

https://www.cipla.com/investors/investor-resources

https://www.cipla.com/investors

https://www.cipla.com/cipla-annual-report-2023-24

REFERENCE BOOKS

1. Brigham, E. F., & Houston, J. F. (2020). Fundamentals of Financial

Management. Cengage Learning.

2. Pandey, I. M. (2021). Financial Management. Vikas Publishing House.

3. Khan, M. Y., & Jain, P. K. (2019). Financial Management: Text, Problems

and Cases. McGraw Hill Education.

Articles and Journals

1. Smith, J. (2020). "Financial Statement Analysis: A Tool for Business

Decision Making." Journal of Business Finance, 15(3), 45–58.

2. Patel, R. (2021). "Performance Evaluation of Pharmaceutical Companies

in India." Asian Journal of Finance, 10(2), 88–101.