SIR M.

VISVESVARAYA INSTITUTION OF TECHNOLOGY BANGALORE

TOPIC: A STUDY ON FINANCIAL STATEMENT ANALYSIS AT CAPLIN

PRESENTED BY:
SEELAM VINAY
1MZ19MBA24
INDUSTRY PROFILE
 India serves as the world's biggest distributor of generic pills.
 The Indian pharmaceutical quarter's components account for half of the
world's need, as 40% of vaccines sent to the United States and 25% of all
medications delivered in the UK.
 Projected growth of the Indian pharmaceutical zone to US$ 100 billion, along
with a growth of the scientific equipment market to US$ 25 billion by 2025.
COMPANY PROFILE
 It has been in Caplin Point since 1990, when it began production of various
topical medications, creams, and other external applications.
 Caplin Point Laboratories is one of the quickest developing mid-cap
pharmaceutical corporations in India.
 Company holds over 2800 product licenses throughout the globe, with a
dominant function in Latin America.
 Topline of the agency in 2010 has grow to be the backside line in 2020
PROMOTERS
 Dr. K C John, Independent Director
 Mr D P Mishra, Director
 DR C K GARIYALI, IAS
 Dr R Ravichandran FICS(UK), Ph.D.

VISION
 “Caplin Point pursuits according to propagate current niches into our existing markets in
imitation of insure the cutting-edge foundation stays vivid and innovative. We encounter
implementing our unique commercial enterprise model throughout the sphere in accordance
with ascertain get entry to after quality drugs at less expensive prices”. 
MISSION
 “Innovate after trade the regulations concerning the game or no longer in accordance with
emulate among the game. Innovation distinguishes among a chief and a follower”.

QUALITY POLICY
 Caplin Point Laboratories Limited shall ensure to that amount high standards of attribute are
mounted because of its merchandise via the appropriate technology, correct people, validated
processes and through advantageous production development.
 The Company stands taken in imitation of ascertain so much every manufacture made yet
disbursed shall keep its purity, eptitude then quality till its distinctive lying in wait life.
PRODUCTS
“Product list shall be shared on execution of CDA”.
 Lyophilised Injections
 Opthalmic
 Liquid Injections
 Liquid Injections
 Inhalers
 Suppositories & Ovules
 IV Infusion
 Softgel Capsules
INFRASTRUCTURE FACILITY
 Caplin Point Laboratories Ltd, located in Puducherry between Suthukeny,
which is approximately 20 km away, is an authorized WHO-GMP facility.
 Suppositories then Ovules
 Dry lime for Oral Suspension
 Soft Gelatin Capsules
SWOT ANALYSIS
STRENGTH
 Bullish Harami (Bullish Reversal)
 Good Aggregate Candlestick Strength (total bullish - bearish candlesticks)
 416.8% returns due to Nifty 500 over 5.0 years
 Growth of Net Profit coupled with increasing Profit Margin (QoQ).
WEAKNESS
 Companies with increasing charges YoY because of long time period projects
 Inefficient use over copartner capital - ROE down into the ultimate 2 years
 86.4% returns because of Nifty 500 above 4.5 years.
OPPORTUNITIES
 Rising Delivery Percentage Compared after Prev Day
 Profit construction Companies together with High ROCE then Low PE
 Buy Zone: Stocks into the buy sector primarily based on days traded at modern-day PE
or P/BV
THREATS
 Companies with an enormous want cap and smaller commons shareholding.
 Weakening Technicals or Share Price Decline
 Red Flags: Weakening Technicals or Share Price Decline
FUTURE GROWTH AND PROSPECTUS
INCREASING PROMOTER HOLDING: There is a steady amplify of trailblazer
hold because final 5-6 years. It indicates management’s property among the
commercial enterprise within the lengthy run.
MANAGEMENT SALARY: Directors’ earnings is road beneath the most
threshold who is 5% concerning PAT. Even aggregate management income such
as resolution administration army (KMP) is 1.35%.

CONCEPTUAL BACKGROUND
 The term "financial statement" refers to a set of related but distinct statements
prepared with the help of a company scenario to reveal its financial facts.
 “The monetary statement provides summary on bills about a business
company, the balance foil showing the final result of procedure over a certain
period,” according to John.N.Meyer.
RESEARCH DESIGN
TITLE OF THE STUDY :A STUDY ON FINANCIAL STATEMENT ANALYSIS
OF CAPLIN POINT LABORATORIES LTD, BANGALORE
STATEMENT OF THE PROBLEM
This learning instituted of the light on certain on the tool on administration (i.e.)
Ratio Analysis. The discipline extensively tries in accordance with determine the
overall pecuniary performance over a organization because of the last bit years
given that cash is an essential parameter of every commercial enterprise concern
in accordance with determine the growth and profitability.
NEED OF THE STUDY
 Financial statement analysis is chronic according to discover the trends yet
relationships between monetary assertion items.
 Both intestinal administration or exterior customers (such as like analysts,
creditors, yet investors) regarding the pecuniary statements necessity in
imitation of consider a company's profitability, liquidity, then solvency.
 The close frequent methods back because of economic declaration evaluation
are vogue analysis, comparative statements, or ratio analysis.
OBJECTIVES OF THE STUDY:
 An overview of Financial Statement analysis of Caplin Point Laboratories Ltd.
 To study the Comparative statement analysis for the year (2016-2020)
 To study the ratio analysis for the year (2016-2020)
 To study the trend analysis of the organization during the year (2016-2020)
SCOPE OF THE STUDY:
 The pecuniary authorities do use that because of evaluating theirs overall performance
into future, as intention help in conformity with analyze pecuniary statements.
RESEARCH METHODOLOGY
 A research technique is a way of methodically going through everything to find solutions.
For further clarification, it may be known as much learning over studying the manner
that research is done scientifically.
LIMITATIONS OF THE STUDY
 Many matters perform affect the tab of ratios yet redact comparisons difficult.
 The charge principle is used in accordance with prepare monetary statements. Financial
information is no longer certain because of value modifications yet inflation/deflation.
 Diversified groups are tough in conformity with amount for contrast purposes.
 Financial statement analysis does not grant solutions according to whole the users'
questions. In fact, it normally generates more questions.
ANALYSIS AND INTERPRETATION
 The Quick Ratio of 2016 is 0.89, but in 2017 it decreases to 0.44, in 2018 it again
decreases to 0.37, in 2019 it increases to 0.53 and in 2020 it again increases to 0.75. For
the future years the quick ratio will be increases.
 On this basis, we may conclude that this particular ratio has been dropping throughout
the last five years. Based on this data, the debt-to-equity ratio will continue to decline in
the coming years.
 Net Profit Margin was 7.46% in 2016, increases to 11.00% in 2017, increases to 14.93%
in 2018, increases to 16.29% in 2019, and again increases to 19.17% in 2020. So the net
profit margin will be increases for the future years.
 Gross Profit Margin was 8.91% in 2016, increases to 23.66% in 2020. From the chat we
can easily able to understand that the gross profit margin of the company was
increasing for the past five years. So the gross pro
 fit margin will be increases for the future years also.
 From the above table indicates that the trend analysis of In Total non current liabilities
was increasing in the year 2016 to 201.86% and decreased in 2019 to 99.71%.
 Total current liabilities value increased in 2018 to 129% decreased in the year 2020 to
100.06%.
 Total non current asset value is increased in 2017 to 180.68% and decreased in the year
2020 to 101.33%.
FINDINGS AND SUGGESTIONS
 Company has to focus on increasing current assets and also they should find a
solution reduce the liabilities over a period, so that net profit of the
organization may increase.
 Through Correlation analysis it is found that when we are spending more
money as expenditure our profit of the Organization getting increased.
 The maintenance of the asset should be made effectively to increase the profit.
 The asset utilization should made proper to obtain the profit of the company.
 Company has to focus on increasing current assets and also they should find a
solution reduce the liabilities over a period, so that net profit of the
organization may increase.  
 Through Correlation analysis it is found that when we are spending more
money as expenditure our profit of the Organization getting increased.
 The maintenance of the asset should be made effectively to increase the profit.
 The asset utilization should made proper to obtain the profit of the company.
CONCLUSION
 The analytical techniques offered by CAPLIN POINT LABORATORIES
LIMITED are valuable for making sound business decisions. A good choice is
vital for the long-term sustainability of the company, profitability, and
development. Without investment decision analysis, a company is prone to
make choices that may lead to its demise.
 study of the components of a financial statement to gain a better understanding
of a company's current situation and future prospects is called financial
statement analysis.
THANK YOU……..