Life Care Medicose Ok Ok

8/7/2019 Life Care Medicose Ok Ok

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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.
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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

Life Care Medicose Ok Ok

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