life care medicose ok ok
TRANSCRIPT
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AROJECT REPORT
ON
Financial Appraisal of Life Care Medicos
Through Ratio Analysis
45 Days Summer Training Project WithLife Care Medicos
Submitted By:-
Vishal Trivedi
MBA-III Semester
Poornima Group of Institution, Jaipur
BT-1, BIO-TECHNOLOGY PARK, SITAPURA, JAIPUR
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Poornima Group of Institution, Jaipur(ISI 2, Goner Road, Sitapura, Jaipur
CERTIFICATE OF
Summer Project/Training during June July, 2010
Certified that Mr. Vishal Trivedi, student of Master of Business Administration, III Semester
has submitted his report on Financial appraisal of Life care Medicos Through Ration
Analysis after successfully completing the summer practical training at Life Care Medicos
from June 17th to August 1st 2010, towards fulfillment of the syllabus requirement prescribed
by Rajasthan Technical University, Kota for MBA III Semester Paper.
Rakesh DuggalDirector, PGI (FOM)
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TO WHOM SO EVER IT MAY CONCERN
This is to certify that Mr. Vishal Trivedi (MBA III Semester) of Poornima Group of Institution
has joined our esteemed organization Life Care Medicos as a trainee. He has undergone a
Project Training in the guidance of Mr. Uma Shankar Vyas (Partner) from 17th
June to 1st
August 2010. He has done well and completed all the criteria of a Project Training and
submitted his project on time. He was well behaved and showed complete professionalism
during the Project Training.
We wish for his great and successful career.
Naval Kishore Vyas(Owner)
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ACKNOWLEDGEMENT
Undertaking a project is never an easy job for a single person. It always involves help from
other people, who are either reviewing your work or teaching about the things you never
knew before.
For completion of any project with aplomb and expertise it is essential that teamwork is
given utmost importance. In the completion of my project Performance Appraisal of Life
Care Medicos. I had privilege of working with experienced professional people, for which I
am grateful to the team of Life Care Medicose for giving me a conductive environment to
work in, which ensured maximum productivity on my part.
I would like to extend my heartful thanks to Mr. Uma Shankar Vyas (Partner, Life careMedicos, Bikaner) for giving me an opportunity to work in Life Care Medicos as a forty-five
days trainee.
I would also like to thank my project guide Ranu mam, for their priceless help and
guidance and my parents who have helped me in this project.
I would also like to thank Rakesh Duggal (Director PGI) for this valuable inspiration.
I must also thank the management of Life Care Medicos to provide excellent opportunity
and environment to pull my project through. Cooperation of Life Care Medicos staff is also
gratefully acknowledged.
Vishal Trivedi
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ACKNOWLEDGEMENT
Undertaking a project is never an easy job for a single person. It always
involves help from other people, who are either reviewing your work or
teaching about the things you never knew before.
For completion of any project with aplomb and expertise it is essential that
teamwork is given utmost importance. In the completion of my project
Performance Appraisal of Life Care Medicos. I had privilege of working with
experienced professional people, for which I am grateful to the team of Life
Care Medicose for giving me a conductive environment to work in, which
ensured maximum productivity on my part.
I would like to extend my heartful thanks to Mr. Uma Shankar Vyas (Partner,
Life care Medicos, Bikaner) for giving me an opportunity to work in Life Care
Medicos as a forty-five days trainee.
I would also like to thank my project guide Ranu mam, for their priceless helpand guidance and my parents who have helped me in this project.
I would also like to thank Rakesh Duggal (Director PGI) for this valuable
inspiration.
I must also thank the management of Life Care Medicos to provide excellent
opportunity and environment to pull my project through. Cooperation of Life
Care Medicos staff is also gratefully acknowledged.
Date Vishal Trivedi
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Contents of Report
Preface
Executive Summary
Chapter 1 OVERVIEW
1.1) History of Industry
1.2) Pharmaceutical Company in India
1.3) Vision & Mission
1.4) Introduction to organization
Chapter 2 PROJECT PROFILE
2.1) Project Title
2.2) Objective Of Study
2.3) Tools & Techniques
2.4) Opportunity & Threats
Chapter- 3 Research Methodology
Chapter 3 Ratio Analysis
Chapter 4 Conclusions
cha
Bibliography
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PREFACE
Management of modern business requires an appreciation of
Multidisciplinary concept & in-depth knowledge of specific Analytical tools,
geared to the solution of real life problems. Knowledge, itself based on
empirical foundation, canhelp in developing the mechanism for handling such
situation. Hence, MBA curriculum has been desired to provide the future
Manager ample practical exposure to the business world.
Summer training is essential for the fulfillment of MBA Curriculum; it
Provides an opportunity to the student to understand the industry with Special
emphasis on the development of skill in analyzing and Interpreting practical
problem though application of management.
The whole study is divided into various parts :-
The first chapter of study is introduction , where in I have present introduction
of the industry and firm in which I had completed my summer training.
The second chapter is project, which contains title, objective, Scope of Study
& Opportunity & Threats. The third chapter is about the facts, figures &
findings.
The fourth chapter is the ratio analysis.
The remaining chapter includes inferences drawn by me on the basis of my
observations.
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Date Vishal Trivedi
CHAPTER 1
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1.1) HISTORY OF INDUSTRY
The earliest drugstores date back to the middle Ages. The first known
drugstore was opened by Arabian pharmacists in Baghdad in 754,[2] and
many more soon began operating throughout the medieval Islamic world and
eventually medieval Europe. By the 19th century, many of the drug stores in
Europe and North America had eventually developed into larger
pharmaceutical companies.
Most of today's major pharmaceutical companies were founded in the late
19th and early 20th centuries. Key discoveries of the 1920s and 1930s, such
as insulin and penicillin, became mass-manufactured and distributed.
Switzerland, Germany and Italy had particularly strong industries, with the UK,
US, Belgium and the Netherlands following suit.
Legislation was enacted to test and approve drugs and to require appropriate
labeling. Prescription and nonprescription drugs became legally distinguished
from one another as the pharmaceutical industry matured. The industry got
underway in earnest from the 1950s, due to the development of systematic
scientific approaches, understanding of human biology (including DNA) and
sophisticated manufacturing techniques.
Numerous new drugs were developed during the 1950s and mass-produced
and marketed through the 1960s. These included the first oral contraceptive,
"The Pill", Cortisone, blood-pressure drugs and other heart medications. MAO
Inhibitors, chlorpromazine (Thomasine), Haldol (Haloperidol) and the
tranquilizers ushered in the age of psychiatric medication. Valium (diazepam),
discovered in 1960, was marketed from 1963 and rapidly became the most
prescribed drug in history, prior to controversy over dependency and
habituation.
http://c/wiki/Pharmacyhttp://c/wiki/Middle_Ageshttp://c/wiki/Islamic_medicinehttp://c/wiki/Baghdadhttp://c/Documents%20and%20Settings/Administrator/Desktop/KAMAL/lhttp://c/wiki/Islamic_Golden_Agehttp://c/wiki/Europehttp://c/wiki/North_Americahttp://c/wiki/Insulinhttp://c/wiki/Penicillinhttp://c/wiki/DNAhttp://c/wiki/Chlorpromazinehttp://c/wiki/Haldolhttp://c/wiki/Valiumhttp://c/wiki/Pharmacyhttp://c/wiki/Middle_Ageshttp://c/wiki/Islamic_medicinehttp://c/wiki/Baghdadhttp://c/Documents%20and%20Settings/Administrator/Desktop/KAMAL/lhttp://c/wiki/Islamic_Golden_Agehttp://c/wiki/Europehttp://c/wiki/North_Americahttp://c/wiki/Insulinhttp://c/wiki/Penicillinhttp://c/wiki/DNAhttp://c/wiki/Chlorpromazinehttp://c/wiki/Haldolhttp://c/wiki/Valium -
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Managed care and Health maintenance organizations (HMOs) spread during
the 1980s as part of an effort to contain rising medical costs, and the
development of preventative and maintenance medications became more
important. A new business atmosphere became institutionalized in the 1990s,
characterized by mergers and takeovers, and by a dramatic increase in the
use of contract research organizations for clinical development and even for
basic R&D. The pharmaceutical industry confronted a new business climate
and new regulations, born in part from dealing with world market forces and
protests by activists in developing countries. Animal Rights activism was also
a problem.
Marketing changed dramatically in the 1990s, partly because of a new
consumerism.[citation needed] The Internet made possible the direct
purchase of medicines by drug consumers and of raw materials by drug
producers, transforming the nature of business. In the US, Direct-to-consumer
advertising proliferated on radio and TV because of new FDA regulations in
1997 that liberalized requirements for the presentation of risks. The new
antidepressants, the SSRIs, notably Fluoxetine (Prozac), rapidly becamebestsellers and marketed for additional disorders.
Drug development progressed from a hit-and-miss approach to rational drug
discovery in both laboratory design and natural-product surveys. Demand for
nutritional supplements and so-called alternative medicines created new
opportunities and increased competition in the industry. Controversies
emerged around adverse effects, notably regarding Vioxx in the US, andmarketing tactics. Pharmaceutical companies became increasingly accused of
disease mongering or over-medicalizing personal or social problems.
There are now more than 200 major pharmaceutical companies, jointly said to
be more profitable than almost any other industry, and employing more
political lobbyists than any other industry. Advances in biotechnology and the
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human genome project promise ever more sophisticated, and possibly more
individualized, medications
1.2) Pharmaceutical Company in India
With 14% of annual growth the Pharmaceutical Companies in India is worth
USD 3.1 billion. It is the largest generic drugs producer in the world and has
substantial contribution towards meteoritic growth of India Inc.
The pool of ' Pharmaceutical Company' is dominated by generic
manufacturers. Although, some first line companies are slowly shedding
'Generic' tag and dawning 'Innovator' tag to get a global footage, but still
generic drugs accounts for 80% of revenue. ' Pharmaceutical Companies in
India ' are getting technologically strong and self reliant. ' PharmaceuticalCompanies in India ' are armed with
Low costs of production & R&D costs (around 70% less than their
Western counterparts).
Highly innovative scientific manpower.
Hosts of national and private laboratories.
A strong IPR regime following WTO and WIPO norms.
Pharmaceutical Market in India is actively partnering with Government, NGOs
and other Healthcare providers to improve the health and quality of life by
innovating and developing safe, cost-effective and quality medicines. It also
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aims to increase the access of medicines to people in rural areas and those
living at or below the poverty line. Companies like Ranbaxy, Dr. Reddy's Lab,
Lupin Lab, Torrent Pharmaceuticals, Glenmark etc are performing excellently
at the global level also. Ranbaxy has recently won a fierce battle against
infringement (Norway) involving key Norwegian patents on Atorvastatin (a
cholesterol-lowering drug marketed by Pfizer). MNC ' Pharmaceutical
Companies in India ' are aggressively forging collaboration, acquisitions and
even cross- licensing with foreign firms for greater reach, both in domestic and
world market. ' Pharmaceutical Company inspite of registering fabulous
growth is still laced with some negative market imperatives. ' Pharmaceutical
Companies Operating in India ' is a pool representing about 250 large
Pharmaceuticals manufacturers and suppliers and about 8000 Small Scale
Pharmaceutical & Drug Units which forms the core (including 5 Central Public
Sector Units).
The issues are:
'Patentable inventions' with respect to Sec 3 (d)of the Patents acts and Rules.
Compulsory Licensing.
Data Exclusivity.
Spurious drugs.
Availability.
Price control of essential drugs.
Sky high price of drugs manufactured by foreign companies.
To be one of the largest and most advanced in the world ' Pharmaceutical
Market in India ' must address the issues of exporters, manufacturers and
suppliers. ' Pharmaceutical Companies in India ' offers tremendous growth
opportunities in years to come especially in the areas of Biological Sciences
Research (particularly genomics and proteomics), Clinical Research &
Development and Innovative Process Chemistry.
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1.4) Company Profile
The pharmaceutical firms comprises of both generic and ethical medicines.
Your Firm is a Whole seller of the ethical medicines. They supply their
medicines in whole over the Bikaner like nokha, Lunkaransar etc. your firm
started in year 2005.
Mr. Naval Kishore Vyas is the original promoter of this firm. At the time of
starting of the business the firm was selling the products of the Lexus &
Ciplas Products. Now this firm is selling the products of various companies
like Cipla, Renbaxy, Torent, Active Health Care & Lexus.
The firm has the contacts to the various Doctors, to whom the medicines are
wrote. Some of the doctors names are as follows:-
Dr. Pintu Nahta Heart Specialist
Dr. Sudhir Chandak Physician Bikaner
Dr. Ganshyam Swami Physician Nokha
Dr. Sarad Kalla T.B.
Dr. Brijesh Chandak ENB DepartmentDr. Shyam Agarwal Childrens Specialist.
Other than these doctors the medicines of this firm is sold to many of the
Retailers of the Medicines and also to the doctors of the PBM.
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Competitors :-
There are some names of the competitors of the firm who are wholesellers of
the medicines. They are :-
Gujrat Medicose
Shanti Medicose
Shri Medicose
Annapurna Medicose
Delux Medicose
Punjab Medicose
City Drug House
1.3) Vision & Mission
Life Care Medicos roots in Bikaner but its actionand thoughts are of the world
standard. Life Care Medicos would study the best and implement then as per
its local requirement which would in able to emerge as a strong
Pharmaceutical group in the future. It would march ahead with the times andwould reach where there are consumers.
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Staff Members of the Organization :-
Naval Kishore Vyas Owner
Kishan Kumar Vyas M.R.
Uma shankar Vyas Supplier
Ram kumar Vyas Computer Operator
Gyan Prakash Peon
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CHAPTER 2
OBJECTIVE SCOPE
Project Title
Objective Of Study
Tools & Techniques
Opportunity & Threats
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Project Title
Financial Appraisal of Life Care Medicose Through Ratio Analysis.
Objective of Study
To study the financial Strengths of Company.
To Find out Various ratios.
To Compare the financial statements of previous & current
year.
Tools & Techniques
Ratio Analysis
Financial Statements of the Company.
Opportunity & Threats
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Availability of financial report of the company.
Support of all staff members.
Lack of practical knowledge about Pharamceutical Firms.
Research methodology
Title:-
Financial Appraisal of Life Care Medicos Through Ratio Analysis
TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with
studying the ratio pattern in the company with a special focus on life
care medicose.
OBJECTIVE:-
To study the financial Strengths of Company.
To Find out Various ratios.
To Compare the financial statements of previous & current
year.
To determine reasons behind opting for an insurance.
To provide the company with information of customer's
Insurance policy if they have any and reasons for opting for
that particular policies.
To know the most preferred policy.
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To determine customers perception towards private insurance
companies and their expectation form private insurance
companies.
To determine the feedback on services provided by any otherinsurance agent.
To study the types of benefits provided by insurance services.
To determine the use of Internet for valuable information and
decision-making process.
SCOPE OF THE STUDY:-
A big boom has been witnessed in Insurance Industry in recent
times. A large number of new players have entered the market and
are buying to gain market share in this rapidly improving market.
The study deals with life care medicose in focus and the various
segments that it caters to. The study then goes on to evaluate and
analyse the findings so as to present a clear picture of trends in the
medicose sector.
SIGNIFICANCE OF THE STUDY:-
This is a limited study which takes into consideration the responses
of 100 people. This data can be explorated to take in the trends
across the industry. The significance for the industry lies in studying
these trends that emerge from the study. It is a rapiddly changing
and evolving sector. People are only beginning to wake up to its
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vast possibilities. A study like this can attempt to guide the future of
the industry based on current trends.
SIGNIFICANE FOR THE RESEARCHER:-
To facilitate and provide all the useful informtaion of the studt, the
company, the insurance industry and also provide marketing ways,
methods of reliance life insurance.
RESEARCH DESIGN:-
NON-PROBABILITY
EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH
The research is primarily both exploratory as well as descriptive in
nature. The sources of information are both primary & secondary.A well-structured questionnaire was prepared and personal
interviews were conducted to collect the customers perception and
buying behavior, through this questionnaire.
SAMPLING METHODOLOGY
SamplingTechnique:
Initially, a rough draft was prepared keeping in mind the objective of
the research. A pilot study was done in order to know the accuracy
of the Questionnaire. The final Questionnaire was arrived only after
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certain important changes were done. Thus my sampling came out
to be judemental and convinent
Sampling Unit:
The respondants who were asked to fill out questionnaires are thesampling units. These comprise of employees of MNCs, Govt.
Employees, Self Employeds etc.
Sample size:
The sample size was restricted to only 100, which comprised of
mainly peoples from different regions of Bikaner due to time
constraints.
Sampling Area :
The area of the research was Bikaner, Rajasthan.
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Chapter 3
DATA ANALYSISAND
INTERPRITATION
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Ratio Analysis:-
Introduction
The financial statements viz. in Income statement and Balance
Sheets Report what has actually happened to earnings during a specified
period and presents a summary of financial position of the company at given
point of time. The statement of retained earnings reconciles income earned
during the year and any dividends distributed with the change in retained
earnings between the start and end of the financial year under study. The
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statement of changes in financial position provides a summary of funds flow
during the period of financial statements.
Ratio analysis is a very powerful analytical tool useful for
measuring performance of an organization. The ratio analysis concentrates on
the inter-relationship among the figures appearing in the aforementioned four
financial statements. The ration analysis helps the management to analyse
the past performance of the firm and to make further projections. Ratio
analysis allow interested parties like shareholders, investors , creditors,
Government and analysis to make as evaluation of certain aspects of a firms
performance.
Ratio analysis is a process of comparison of one figure against
another, which make a ratio, and the appraisal of the ratios to make proper
analysis about the strengths and weakness of the firms operations. The
calculation of ratios is a relatively easy and simple task but the proper analysis
and interpretation of the ratios can be made only by the skilled analyst. While
interpreting the financial information, the analyst has to be careful in
limitations imposed by the accounting concepts and methods of valuation.
Information of non-financial nature will also be taken into consideration before
a meaningful analysis is made. Ratio analysis is extremely helpful in providing
valuable insight into a companys financial picture. Ratios normally pinpoint a
businesss strengths and weakness in two ways:-
Ratio provide an easy way to compare present performance with past.
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Ratios depict the areas in which a partner business in competitively
advantaged or disadvantaged through comparing ratios to those of other
businesses of the same size within the same industry.
Categories of Ratios
The ratio analysis is made under six broad categories as follows:
Liquidity Ratios or Short term Solvency Ratios
Activity or Efficiency Ratio
Profitability Ratios
Leverages or Capital Structure Ratios
Investment Analysis Ratios
Liquidity Ratios or Short Term Solvency Ratios
Liquidity ratios are those which are used to measure the ability of thefirm to meet its short term obligations out of short term resources. Such ratios
highlight short term solvency of the firm. It includes the following ratios:
1. Current ratios
2. Absolute Liquidity ratio, and
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3. Liquid ratio
Current Ratio
Current Ratio = Current Assets, Loans & Advances
Current Liabilities & Provisions
This ratio measures the solvency of the company in the short-
term.
Current assets are those assets which can be converted into cash within a
year. Current liabilities and provisions are those liabilities that are payable
within a year. A current ratio of 2:1 indicates a highly solvent position. A
Current ratio of 1.33: 1 is considered by banks as the minimum acceptable
level for providing working capital finance. The constituents of the current
assets are as important as the current assets themselves for evaluation of a
companys solvency position. A very high current ratio may be due to the
pilling up of inventory, inefficiency in collection of debtors, high balances in
cash and bank accounts without proper investment.
Analysis of the Ratio:-
2008-09 2007-08
83492.28 143338.9
12926.24 70113