APresentation on Financial

PerformanceThrough Working Capital

AtMrk Health care Company

Presented By-Prajapati Vishvani

MRK Healthcare Pvt. Ltd.

Hinduja Hospital Jaslok Hospital Saifee Hospital Tata Memorial Hospital Cancer Research Institute

Top Five Clients

Business Type: Manufacturer Main Products: Surgical Gloves,Nebulizer,Needle

Burner & Syringe Destroyer,Medical Disposables,Catheter

Location: Gujarat, India Year Established: 1965

Number Of Employees: 501 - 1000 People Total Annual Sales Volume: US$10 Million - US$50 Million Main Markets: North America, South America, Eastern Euro

pe, Southeast Asia, Africa Average Lead Time: 25 Day(s)

Mrk Healthcare - Contact Details Contact Person : Mr. Shravan Purohit/rajneesh Shah Telephone : +91-02766-230724 Address : 153/P, Panch Pippal, Hansapur,. UNJHA

PATAN ROAD, NORTH GUJARAT, Gujarat, India

Mr. Mahesh Shah   Education: B. E. Mechanical Experience: 35 yrs.   Mr. Rajnikant Shah   Education: M. Sc. Research Experience: 33 yrs.   Mr. Kamlesh Shah   Education: B. Sc. Hons Experience: 29 yrs.   Mr. Yogesh Shah   Education: D.I.S.P.D.M.E Experience: 14 yrs.

Some of the eminent members in our team include:

Product Range

Surgical Gloves Speciality

Surgical Gloves

Examination Gloves

Foley Balloon Catheter

Medical Disposable Apparels

I.V. Cannula Stop Cock

Infusion & Transfusion

Urine Collection Bag

Capital can be divided into two group like, fix capital & Working Capital (W.C).

Fix capital Working Capital have two consult Concept like as; Gross working capital Net working capital

Introduction of W.C. Analysis

WC Cycle / operating Cycle

.

Year 2013 2014

Net Working Capital 6.57 12.78

02468

101214

Net Working Capital

Net Working Capi-tal

Data Interpretation:If I analysis the two years working capital position of the company, I find out that company has sufficient working capital to meets its short term liability, it is show that Net Working Capital. So, it is good indicator for the company.

0102030405060708090

Cash &Bank Balance

Cash &Bank Balance

Year 2014 2013

Cash &Bank Balance 84.9 58.5

Data Interpretation:If we analyze the above table and chart we find that it follows a uneven pattern. In the year 2013 it had maintained a low amount of cash and bank balance. But in the year 2014, cash and the bank balances has increased from 28.42 lacks which is not a good sign for the company because it shows that company is not using its cash for beneficial activities.

0

0.5

1

1.5

2

2.5

Short Term Loans& Advances

Short Term Loans& Advances

Year 2013 2014

Short Term Loans& Advances 1.47 2.12

Data Interpretation:If analyze the table and the chart we can see that it follows an increasing trend

which is a good sign for the company. We can see that from the year 2013 to 2014 it increased. The increasing pattern shows that company is giving advances for the expansion of plants and machinery which is good sign for better production of pumps and other goods. Although company’s cash is blocked but this is good that company is doing modernization of plants in time to compete with other competitors in market.

Year 2013 2014

Working Capital Ratio(as % of Sales) 0.56 0.55

(In corer)

0.5440.5460.5480.55

0.5520.5540.5560.5580.56

0.562

Working Capital Ratio(as % of Sales)

Working Capital Ra-tio(as % of Sales)

Data Interpretation: This ratio indicates whether the investments in current assets or net current assets (i.e., working capital) have been properly utilized. In order words it shows the relationship between sales and working capital. Higher the ratio lower is the investment in working capital and higher is the profitability and vice versa. But too high ratio indicates over trading. This ratio is an important indicator about the working capital position. Now if analyze the two years data, find that it follows an decreasing trend which means that its investment in working capital is higher and the company is utilizing low of its profit.

0

0.5

1

1.5

2

2.5

3

Current Ratio

Current Ratio

Data Interpretation:

This Ratio is also known as working capital ratio how many current assets are available as compare current liability. If, current assets is higher than the current liability so company’s position is good. The standard of the normal ratio is 2:1 but in most of company standard is taken according to Tendon Committee which is taken as 1.33:1. So we can conclude that according to calculation in year 2014 Current Assets has 2.50 when current liability is 1 and in year 2013 current assets was 1.81 when current liability is 1. So, Company has not good position as per the standard ratio.

Year 2013 2014

Current Ratio 1.81 2.50

Year 2014 2013

Quick Ratio 1.53 2.13

0

0.5

1

1.5

2

2.5

Quick Ratio

Quick Ratio

Data Interpretation:

This ratio establishes relation between the quick assets & current liabilities. As assets is liquid if it can be converted into cash immediately or reasonably soon without loss of value .the accepted standard is 1:1. The quick ratio of Mrk Health Care Company was not favorable in the years of 2014 and 2013 as 1.53 and 2.13 At last the company’s overall liquidity position is not in good.

1.02

1.03

1.04

1.05

1.06

1.07

1.08

1.04

1.07

CA to FA Ratio

CA to FA Ratio

Data Interpretation:Assuming a constant level of fixed assets, a higher CA/FA ratio indicates a conservative current assets policy and a lower CA/FA ratio means an aggressive current assets policy assuming other factors to be constant. A conservative policy i.e. higher CA/FA ratio implies greater liquidity and lower risk; while an aggressive policy i.e. lower CA/FA ratio indicates higher risk and poor liquidity.

Year 2014 2013

CA to FA Ratio 1.04 1.07

41424344454647484950

49

44

Receivable Ratio(Debtors)days

Receivable Ratio(Debtors)days

Data Interpretation:Generally a low debtor’s turnover ratio implies that it considered congenial for the business as it implies better cash flow. The ratio indicates the time at which the debts are collected on an average during the year. Needless to say that are a high Debtors Turnover Ratio implies a shorter collection period which indicates prompt payment made by the customer. Now if we analyze the two year data we can say that it holds a good position while receiving its money from its debtors. The ratios are in an increasing trend, which implies that recovery position is good company and Company has to maintain the receivable period.

Year 2014 2013

Receivable

Ratio(Debtors)days 49 44

0

10

20

30

40

50

60

56

28

Payable Ratio(Creditor) days

Payable Ratio(Creditor) days

Data Interpretation:This ratio indicates when will be company paid payments to the creditors and if the payment period is long so, benefited for company on the basis of working capital. According to calculation current year 2014 has 56 days payment period higher than year 2013 has 28 days. According to above graphical presentation as per my suggestion company suggest to supplier stable or increase credit days.

Year 2014 2013

Payable

Ratio(Creditor) days 56 28

After undertaking this industrial summer training, I can conclude that of management. Because such industrial training help the student in matching theoretical knowledge with its practical implementation.

  As far as the co. “MRK PVT LTD is

concerned, I can that it is good market value in India & Across the world.

CONCLUSION

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Thank You