Over the last few decades the Indian pharmaceutical industry is growing rapidly in both research and manufacturing. Cost effective research and manufacturing technologies, availability of world class research personnel and scientists added value to the Indian pharma industry. Though the Indian pharmaceutical companies are effectively utilizing the resources available in the country, proper designing and the efficient implementation of financial policies makes them very effective in reaching a condition of cost effective innovators and manufacturers of pharmaceutical products. In this connection this book will be used as a guide to the finance executives of the pharmaceutical companies to understand the existing practices of the industry, future challenges to the pharma industry. so that the decision makers in the Indian pharmaceutical industry can make a wise and fruitful decisions for the improvement of the financial strength of their respective companies. The book can be useful for the Finance students in understanding the difference between the theory and practice of various financial tools.