DETAILS OF THE COMPANY
Registered Office
Pfizer Centre,
Patel Estate, Off S. V. Road,
Mumbai
Maharashtra
400102 Tel: 022-66932000
Fax: 022-26784569
Email: [Link]@[Link]
Website: [Link]
Group: MNC Associate
Registrars
Karvy Computershare Private Ltd. Plot No. 17-24,
Vittal Rao Nagar,
Madhapur, Hyderabad - 500081
Telangana Tel: 040-44655000
Fax: 040-44655814, 23420814
Email: [Link]@[Link]
Website: [Link]
Management
Name
R A Shah
Vivek Dhariwal
Pradip Shah
Aijaz Tobaccowalla
S Sridhar
Uday Khanna
Designation
Chairman
Whole Time Director
Director
Managing Director
WholeTime Director & CFO
Director
ABOUT THE COMPANY
Pfizer Limited has a turnover of Rs.1004.27 crores for the year ended March 31,
[Link] company was awarded the FICCI SEDF (Socio Economic Development
Foundation) Certificate of Commendation for its social responsibility efforts. Pfizer
strives to provide access to safe, effective and affordable medicines and related health
care services to the people who need them.
It has a leading portfolio of products and medicines that support wellness and
prevention, as well as treatment and cures for diseases across a broad range of
therapeutic areas; and it has an industry-leading pipeline of promising new products that
have the potential to challenge some of the most feared diseases of present time, like
Alzheimer's disease and cancer.
To ensure they continue to deliver on their commitments to the patients, customers and
shareholders who rely on them, they are focused on improving the way they do
business; on operating with transparency in everything they do; and on listening to the
views of all of the people involved in health care decisions. Through working in
partnership with everyone from patients to health care providers and managed care
organizations to world governments and non-governmental organizations, their goal is
to ensure that people everywhere have access to innovative treatments and quality
health care.
SOME OF THERE PRODUCTS ARE :
Gelusil (Antacid Anti Gas)
Pantoprazole
Becosule Capsules (Vit.B- Complex+ Vit.C)
Pfizers Paracetamol (Paracetamol)
Corex DX (Dextromethorphan+ Chlorpheniramin)
ANALYSIS OF BALANCE SHEET
1. It can be clearly seen that there has been a huge decrease in the amount of
reserves which is nearly Rs. 1000 crore.
2. The balance sheet shows an increase in capital work in progress which means
that there an asset or project is in continuation.
3. Also we see that the sales team is very efficient as their inventories level as
reduced and yet at the same time there sales volume as increased drastically.
4. Though there is increase in sundry debtors but this could be due to the fact that
there is considerable increase in the sales of the company.
5. We also see that the company has reduced its fixed deposits this could be due to
the fact that the company does not think about the better prospects of investment
in the fixed investments.
ANALYSIS OF PROFIT AND LOSS
ACCOUNT
1. We see that there is consistent growth in sales except for Mar12 and Mar13.
2. Other income has reduced given to the fact that they have reduced their other
investments.
3.
It is one of the interesting facts that the operations of the company are highly
specialized which can be seen from the fact that there is continuous reduction in
fuel and power charges of the company.
4. With reduction in employee cost we can assume that many employees have
been retrenched or have retired and the company probably has not recruited or
have recruited only a few people. Thus, creating pressure on the existing
workforce.
5. Efforts have also been made to reduce miscellaneous costs even though their
production and sales went up.
ANALYSIS OF THE DIVIDEND
POLICY
Financial year
Dividend (in %)
2009-10
125
2010-11
165
2011-12
125
2012-13
325
2013-14
3600
1. In the financial year 2013-14, Pfizer gave away a dividend of 3600% to its
shareholders. This was a remarkable decision taken by the company.
2. The earnings per share is Rs. 74.01 but the dividend actually given is Rs. 360
per share.
3. Two things can be concluded from this fact.
That the company does not have immediate expansion plans else they
would have not released the reserves.
Other is that the company is very optimistic about the future so that they
dont need cash at reserves and they can generate cash at will .
4. Reserves grew at a constant pace from Mar10 to Mar13 but they released a
great amount of dividend thereby releasing a large amount of reserves.
5. It is a classical example of the companies releasing its reserves in order to pay
to its shareholders.
RELATIONSHIP BETWEEN
DIVIDEND AND MARKET PRICE
OF SHARES
The above graph shows the changes in the market prices of the shares of the company
over a span of 5 years from 2009-10 to 2013-14.
It can be clearly seen from the trend analysis that after the declaration of
dividends the effect that is observed is a fall in the market price of the share.
But with time it can be observed that the growth of market price is consistent and
there is no huge fall in the prices.
After the announcement of last years dividend of 3600% there has been a
drastic increase in the prices of the shares. It rose from Rs. 1150 to current price
of Rs. 2124 as on 17th March 2015 which is almost double.
This trend shows the optimism in the minds of the investors of a good investment
return by the company.
Hence it can be concluded that there is not a direct rather a partially inter-relationship
between the dividend payout and the market price of the share.
ADVICE TO THE COMPANY
1. Even though the dividend paid out in the last financial year was remarkable yet
the company is not consistent throughout. There should be consistency in the
dividend policy of the company.
2. By announcing a 3600% of dividend to the shareholders, the company has
created a strong and positive image among the shareholders. If the company
fails to live up to the expectations in the later years then it may adversely hamper
the image of the company.
3. The company gave a massive portion of its retained earnings as dividends. It will
certainly affect the future growth prospects of the company as it may not be able
to enter into new ventures and endeavors. In such a situation the company might
require to take debt in the form of secured or unsecured loans which till now is
nil.
4. The debtors and creditors have increased and the cash balances have gone
down so it can be said that retained earnings can be extremely helpful in
emergencies. Hence it is suggested to retain moderate percentage of profits
every year.
5. However, the funds should lie idle with company. If the company has no incentive
of growth then they should payout higher dividends to the shareholders but
should remain consistent with the dividend policy.
BIBLIOGRAPHY
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