You have been given the financial statements of two pharmaceutical companies $$ Sun Pharam and Cipla. Answer the following questions based on these statements.

$1.$ If Sun Pharma announce its one stock will be spilted in two on $31$ March $2023,$ how

the balance sheet of the company will change after this issue $($show only items which

will change$).$ What will be its impact on its market value per share.

$2.$ Compute return on total assets $($before tax$)$ in two companies during the last two

years. What difference you observe in these companies, with respect to this ratio and

why?

$3.$ Calculate EBITDA and EBIT margins in both the companies for the given financial

years? What change you observe in their margin ratios during these two years and

why?

$4.$ Calculate the total assets turnover ratio. Which company is using its assets more

efficiently? What change you observe in their asset turnover in these two years and

why?

$5.$ Calculate Return on Equity of both of the companies for the year $2022-23$ and explain

the difference in ROE among both of the company using the Du$-$Pont framework.

$6.$ Compare the inventory days and receivables days of the two companies?

$7.$ Compute Cash Cycle of both the companies for $2022-23.$

$8.$ Calculate current and quick ratios of the companies for both of the years and comment

on their liquidity conditions.

$9.$ Calculate book value of a stock in both the companies as on $31$ March $2022$ and

current price to book ratio.

$10.$ Calculate the earnings per share $($EPS$)$ for both the companies for each of the two

financial years. Calculate the current price$-$to$-$earnings ratio $($P$/$E ratio$).$ Which

company is getting a better valuation in the market and why?

Comparative Balance Sheets $($Amounts on Crore$)$

Sun Pharma Cipla

As on $31-$Mar$-2331-$Mar$-2231-$Mar$-2331-$Mar$-22$

ASSETS

Non$-$Current Assets

Property, Plant, and Equipment $10,390\mathrm{.}3810,371\mathrm{.}384,583\mathrm{.}604,838\mathrm{.}79$

Right$-$of$-$Use Assets $407\mathrm{.}18325\mathrm{.}61$

Capital Work$-$in$-$progress $963\mathrm{.}35797\mathrm{.}51689\mathrm{.}17382\mathrm{.}9$

Investment Properties $59\mathrm{.}8361\mathrm{.}42$

Goodwill $8,712\mathrm{.}716,591\mathrm{.}282983\mathrm{.}863137\mathrm{.}93$

Other Intangible Assets $5,317\mathrm{.}035,702\mathrm{.}501126\mathrm{.}011319\mathrm{.}58$

Intangible Assets under Development $4,009\mathrm{.}81489\mathrm{.}29404\mathrm{.}13383\mathrm{.}28$

Financial Assets $00$

$($i$)$ Investments $5,068\mathrm{.}094,948\mathrm{.}57481\mathrm{.}62309\mathrm{.}82$

$($ii$)$ Investment in associate $389\mathrm{.}39266\mathrm{.}0890\mathrm{.}945\mathrm{.}81$

$($iii$)$ Other Financial Assets $165\mathrm{.}9126\mathrm{.}6199\mathrm{.}32417\mathrm{.}08$

Tax Assets $5,471\mathrm{.}225,361\mathrm{.}111004\mathrm{.}54932\mathrm{.}45$

Other Non$-$Current Assets $372\mathrm{.}37288\mathrm{.}84258\mathrm{.}17218\mathrm{.}91$

Total Non$-$Current Assets $40860\mathrm{.}2534943\mathrm{.}1712188\mathrm{.}3312373\mathrm{.}58$

Current Assets

Inventories $10513\mathrm{.}058925\mathrm{.}135156\mathrm{.}435350\mathrm{.}24$

Financial Assets

$($i$)$ Trade Receivables $11438\mathrm{.}5110484\mathrm{.}5940573424\mathrm{.}44$

$($ii$)$ Investments $9372\mathrm{.}617633\mathrm{.}943089\mathrm{.}862194\mathrm{.}97$

$($ii$)$ Cash and Cash Equivalents $4623\mathrm{.}734508\mathrm{.}25627\mathrm{.}63677\mathrm{.}74$

$($iii$)$ Bank balances other than $($ii$)$ above $1146\mathrm{.}56525\mathrm{.}1936\mathrm{.}991250\mathrm{.}74$

$($iv$)$ Loans & Advances $41\mathrm{.}32169\mathrm{.}977\mathrm{.}593\mathrm{.}57$

$($v$)$ Other Financial Assets $764\mathrm{.}51737\mathrm{.}732080\mathrm{.}57898\mathrm{.}39$

Other Current Assets $1961\mathrm{.}651879\mathrm{.}89848\mathrm{.}99910\mathrm{.}74$

Total Current Assets $39861\mathrm{.}9434864\mathrm{.}616805\mathrm{.}0614710\mathrm{.}83$

Assets Classified as Held for Sale $21\mathrm{.}4469\mathrm{.}8916\mathrm{.}71$

Total Assets $80743\mathrm{.}5969807\mathrm{.}7729463\mathrm{.}2827101\mathrm{.}12$

EQUITY AND LIABILITIES

Equity

Equity Share Capital $239\mathrm{.}93239\mathrm{.}93161\mathrm{.}43161\mathrm{.}36$

Other Equity $55755\mathrm{.}4547771\mathrm{.}2923246\mathrm{.}3520680\mathrm{.}33$

Equity attributable to the owner $55995\mathrm{.}3848011\mathrm{.}2223407\mathrm{.}7820841\mathrm{.}69$

Non$-$Controlling Interest $3320\mathrm{.}093054\mathrm{.}89305\mathrm{.}76275\mathrm{.}69$

Total Equity $59315\mathrm{.}4751066\mathrm{.}1123713\mathrm{.}5421117\mathrm{.}38$

Liabilities

Non$-$Current Liabilities

Financial Liabilities

$($i$)$ Borrowings $0229\mathrm{.}920416\mathrm{.}24$

$($ii$)$ Lease Liabilities $559\mathrm{.}91251\mathrm{.}79208\mathrm{.}82158\mathrm{.}28$

$($iii$)$ Other Financial Liabilities $3\mathrm{.}7916\mathrm{.}12113\mathrm{.}7100\mathrm{.}37$

Provisions $342\mathrm{.}91369\mathrm{.}07102\mathrm{.}16100\mathrm{.}22$

Deferred tax liabilities $($net$)31\mathrm{.}6931\mathrm{.}86163\mathrm{.}28243\mathrm{.}96$

Other Non$-$Current Liabilities $582\mathrm{.}82634\mathrm{.}4552\mathrm{.}1151\mathrm{.}46$

Total Non$-$Current Liabilities $1521\mathrm{.}121533\mathrm{.}21640\mathrm{.}071070\mathrm{.}53$

Current Liabilities

Financial Liabilities

$($i$)$ Borrowings $6197\mathrm{.}88700\mathrm{.}77520\mathrm{.}36407\mathrm{.}9$

$($ii$)$ Lease Liabilities $128\mathrm{.}08107\mathrm{.}8273\mathrm{.}9473\mathrm{.}36$

$($iii$)$ Trade Payables

$($a$)$ Due to Micro and Small Enterprises $00225\mathrm{.}91175\mathrm{.}12$

$($b$)$ Other than Micro and Small

Enterprises $5681\mathrm{.}524489\mathrm{.}762231\mathrm{.}142332\mathrm{.}98$

$($iv$)$ Other Financial Liabilities $1593\mathrm{.}091883\mathrm{.}27394\mathrm{.}54370\mathrm{.}83$

Provisions $5354\mathrm{.}389147\mathrm{.}821286\mathrm{.}671221$

Other Current Liabilities $642\mathrm{.}72703\mathrm{.}39284\mathrm{.}13311\mathrm{.}06$

Current Tax Liabilities $($Net$)308\mathrm{.}71175\mathrm{.}6216\mathrm{.}5820\mathrm{.}62$

Total Current Liabilities $19906\mathrm{.}3817208\mathrm{.}455033\mathrm{.}274912\mathrm{.}87$

Liabilities directly associated with $0\mathrm{.}62076\mathrm{.}40\mathrm{.}34$ assets classified as held for sale

Total Equity and Liabilities