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INTRODUCTION TO BUSINESS FINANCEACCOUNTS RECEIVABLE MANAGEMENTASHFAQ SOLANGIAYESHA MOTIThe heart of our report is based on the findings from the interview conducted with MR. Muhammad Fahad Arzani. We have tried our best to present all the necessary information required in this report.INTRODUCTIONNovartis is a world leader in the research and development of products to protect and improve health and well-being. The company has core businesses in pharmaceuticals, vaccines, consumer health, generics, eye care and animal health.

Vision and MissionTo discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life.

CHIEF FINANCE OFFERHOD.FRAR.ML.MA.MEXECUTIVESHEAD OF SCMMANAGERLOGISTICSWAREHOUSE WORKERHOD BPAAMAMEXECUTIVESEXECUTIVESMANAGERACCOUNTS RECEIVABLEIt is a legally enforceable claim for payment from a business to its customer/clients for goods supplied and/or services rendered in execution of the customer's order.Accounts receivable is shown in the balance sheet as an asset.These may be distinguished from notes receivable, which are debts created through formal legal instruments called promissory notes.CREDIT POLICIESIn Novartis credit policies are very different as they have big institution as their clients so they have set their credit policies as accordingly, and they give credit to the institutions on the basis of their past six months orders and dealing. By taking the average of past six months a client is offered credit. Military institutions like CMH etc are offered credit at 90 days where as all other institutions like:- Agha khan,SIUT, Liaquat National are offered credit at 45 days. They dont offer discounts as they have good products and reasonable price approved from ministry of health. Even if they want to allow discounts they have to follow a lengthy procedure for it with in the company so normally they avoid it.

All Novartis Group affiliates engaged in the promotion of prescription pharmaceutical products to their respective customers must adhere to companys practice policies and guidelines based on the following principles:-

1.All Hospitals Promotional practices must accurately reflect the benefits and risks of a medicine. They must be ethical and genuine.2.Any information, the hospitals require must consider the needs of customer. It must be based on product information as approved by local authorities.3.Sponsorships of medical or scientific events must be clearly disclosed, and the events purpose must be sharing relevant medical or scientific information.

4.Hospitality must be appropriate, modest, consistent with local practices and secondary to the main purpose of any meeting.5.Should offer No bribery. Also, Gifts may be given by them only when local standards permit it. Gifts must be inexpensive compared to local standards, relevant to the practice of medicine and may only be given infrequently.

6.Should prohibit any personal incentives to prescribe products.7.Samples may only be required to help healthcare professionals become familiar with a product. This must adhere to all local requirements.8.All interactions and activities must comply with applicable local laws and regulations.9.Should have good past records. 10.All preceding huge loans should have been paid-off.

Novartis global standards represent the companys minimum compromising standards, and each Novartis division has specific standards. For example, the Novartis Pharma Principles and Practices for Professionals (NP4) governs how associates in our largest division conduct business and interact with customers, including promoting medicines to healthcare professionals. All Novartis divisions have similar policies, and the Novartis Group Audit team works to ensure compliance with its customers.

To assure compliance, Novartis periodically audit the promotional activities of their local sales and marketing organizations. Novartis employees have been directed to report actual or suspected instances of misconduct to the office of our Business Practices Officer. RECOVERY POLICIES:-They have little problem from government institutions in their recovery so they have to adjust with them as they are run by government so they have to take that into consideration. The rest of institutions are good at paying back even if they resist the Novartis issue them DUNNING LETTER .DEFAULT RATE:-Since, seven years their default rate has been zero. As they have big clients who already have a very good reputation in market so they are very good at paying back their credits on time. Whereas for as their distributors are considered they have collection contract with them their big distributors do collection the companys behalf.

CONCLUSIONAs Novartis is big pharmaceutical company in Pakistan so they also have big clients who also have a very good reputation in market so they do not have any issue in recovery and have almost zero default rate. . Over they follow conservative approach with low risk but they have moderate profit.