Ranbaxy Laboratories Ltd. is a leading Indian corporation in the pharmaceutical industry. You were provided in the balance sheet and profit and loss account of the company for the year ended 31-12-2002 and 31-12-2001, for the construction of CFS, as taken from the Web site of the company

Required

1. Carry out the following analysis in bullet points:
   • Multi-step income statement analysis
   • Horizontal analysis
   • Common-sized analysis
   • Analytical balance sheet
2. Draft a one-page report on the strengths and weaknesses of the company as an outcome of your analysis.
3. Discuss with your professor the following items appearing in these financial statements or search in the annual report on the Web site of the company for their explanation:
   1. Employees stock options outstanding
   2. Extraordinary items:
      • Settlement compensation income:

i. On closure of a contract,