Vol. 3, Issue 1, Part D (2017)

Abstract
Indian Pharmaceutical Industry is highly fragmented, with more than 20,000 registered companies, with top 25 companies controlling 70% approx. of the Indian market. 70% of India’s demand is met by Indian Pharmaceutical Industry in the form of Bulk Drugs, Intermediates, Formulations, chemicals, tablets, capsules, orals, injections, powders, vaccines etc. The Indian pharmaceutical industry is at present enjoying a top rank among the developing nations with wide ranging capabilities in the complex field of drug manufacturing and technology used. The study concentrates on to ascertain the debt repayment capacity of the selected Pharmaceutical companies of India. Investors often take a close look at liquidity ratios when performing fundamental analysis on a firm. Selected companies are lack in liquidity management and high cost of production, higher labor cost and inefficient auditing of company’s business activities. To sum up, the adoption of suggestive measures will certainly help the selected units to improve their financial performances. Thus, the growth and all round development of this industry has a direct bearing on the improvement of India's economy.