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A

DISSERTATION REPORT

ON

ANALYSIS ON M.I.S. REPORTS OF 10

PHARMACEUTICAL COMPANIES OF PAONTA SAHIB

Submitted to

KURUKSHETRA UNIVERSITY, KURUKSHETRA

In partial fulfillment of the requirement for the award of degree

Of

MASTER OF BUSINESS ADMINISTRATION

SESSION (2014-2016)

UNDER SUPERVISION OF- SUBMITTED BY-

Ms. Meenu Bhutani Nikhil Jhamb

Roll No.-14039

GURU NANAK INSTITUTE OF MANAGEMENT

MULLANA, AMBALA (HARYANA)

(Approved by AICTE, Affiliated to Kurukshetra University, Kurukshetra)

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DECLARATION

I, NIKHIL JHAMB hereby declare that this research entitled ― Analysis of M.I.S.

Report of various pharmaceutical companies (Mediforce Heathcare Pvt. Ltd.,

Sirmour Remedies Pvt. Ltd., Copmed Pharmaceuticals Pvt. Ltd. UNIT-I,II,III,

Pharma Force Labs UNIT-I,II,III, Relax Pharmaceuticals UNIT-I,II.)‖ submitted

by me for the award of M.B.A. (Final) of Kurukshetra University, Kurukshetra, is the

original work conducted by me and the data provided in the study authentic to the best

of my knowledge.

This research is not submitted to any other Institute or University for the award or

degree of M.B.A.

NIKHIL JHAMB

M.B.A.(Final)

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ACKNOWLEDGEMENT

There is always a sense of gratitude which one can express for others for their help

and supervision in achieving the goals. I too express my deep gratitude to each and

every one who has been helpful to me in completing the Research report successfully.

I also want to convey my sincere sense of gratitude to Mr. Virender Mehta (

H.O.D., M.B.A. Deptt.) for their inspiration & helpful attitude. I would like to grab

the opportunity to thank Ms. Meenu Bhutani ( Faculty, M.B.A. Deptt.) for her

helping hand in the completion of the Research report.

I feel self-short of words to thanks my parents and friends who had directly or

indirectly help me in the completion of the Research report. I would also like to thank

Almighty God for blessing showered on me during the completion of Research

report.

NIKHIL JHAMB

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EXECUTIVE SUMMARY

As we are experiencing that Pharmaceuticals is the biggest necessity in any country.

Due to lacking in this sector India is far behind the developed countries. In this

research I have included India’s 10 Pharmaceutical Companies they are induldge in

this business.

M.I.S. Reports show the real picture of the companies’ functions, operations,

liabilities and assets. Study of their M.I.S. Reports show growth of the companies,

that they are earning good profit and as well as distributing good amount of dividends.

In my study, I tried to cover all the financial aspects and throw a light on the

profitability of the companies which shows that there is high risk in the industry in

India.

I have done research on the M.I.S. report of 10 different pharmaceutical companies

and did the interpretation on the basis of sales , profit and overheads of the companies

by comparing it with their last year’s sales, profit and overheads.

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Declaration

Acknowledgement

Executive Summary

CONTENTS

TITLE PAGE NO.

Chapter 1.Introduction

1.1 Pharmaceutical Industry - 1-16

1.2 Company Profile - 17-32

Chapter 2.

Management Information

System - 33-43

Chapter 3. Research methodology

3.1 Objective of the study - 44

3.2 Research design - 44

3.3 Data Collection - 45

Chapter 4. Data analysis and interpretation - 46-55

Chapter 5. Findings - 56

Chapter 6. Recommendations and Conclusion - 57-58

Bibliography - 59

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INTRODUCTION

Pharmaceutical industry, the discovery, development, and manufacture of drugs and

medications (pharmaceuticals) by public and private organizations. The modern era of

the pharmaceutical industry—of isolation and purification of compounds, chemical

synthesis, and computer-aided drug design—is considered to have begun in the 19th

century, thousands of years after intuition and trial and error led humans to believe

that plants, animals, and minerals contained medicinal properties. The unification of

research in the 20th century in fields such as chemistry and physiology increased the

understanding of basic drug-discovery processes. Identifying new drug targets,

attaining regulatory approval from government agencies, and refining techniques in

drug discovery and development are among the challenges that face the

pharmaceutical industry today. The continual evolution and advancement of the

pharmaceutical industry is fundamental in the control and elimination

of disease around the world.

The Indian pharmaceutical industry currently tops the chart amongst India's science-

based industries with wide ranging capabilities in the complex field of drug

manufacture and technology. A highly organized sector, the Indian pharmaceutical

industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent

annually. It ranks very high amongst all the third world countries, in terms of

technology, quality and the vast range of medicines that are manufactured.

http://www.britannica.com/topic/pharmaceutical

http://www.britannica.com/topic/pharmaceutical

http://www.britannica.com/science/drug-chemical-agent

http://www.britannica.com/science/chemistry

http://www.britannica.com/science/physiology

http://www.britannica.com/science/disease

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The Indian pharmaceutical sector is highly fragmented with more than 20,000

registered units. It has expanded drastically in the last two decades. The

Pharmaceutical and Chemical industry in India is an extremely fragmented market

with severe price competition and government price control. The Pharmaceutical

industry in India meets around 70% of the country's demand for bulk drugs, drug

intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and

injectibles. There are approximately 250 large units and about 8000 Small Scale

Units, which form the core of the pharmaceutical industry in India (including 5

Central Public Sector Units).

The Government has also played a vital role in the development of the India Software

Industry. In 1986, the Indian government announced a new software policy which

was designed to serve as a catalyst for the software industry. This was followed in

1988 with the World Market Policy and the establishment of the Software

Technology Parks of India (STP) scheme. In addition, to attract foreign direct

investment, the Indian Government permitted foreign equity of up to 100 percent and

duty free import on all inputs and products.

Current Scenario

The industry has enormous growth potential. Factors listed below determine the rising

demand for pharmaceuticals.

The growing population of over of a billion

Increasing income

Demand for quality healthcare service

Changing lifestyle has led to change in disease patterns, and increased demand

for new medicines to combat lifestyle related diseases.More than 85 per cent

of the formulations produced in the country are sold in the domestic market.

India is largely self-sufficient in case of formulations. Some life saving, new

generation under-patent formulations continue to be imported, especially by

MNCs, which then market them in India. Overall, the size of the domestic

formulations market is around Rs160 billion and it is growing at 10 per cent

per annum

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Diagnostic Outsourcing/ Clinical Trails

The Indian diagnostic services are projected to grow at a CAGR of more than 20 per

cent during 2010-2012.

Some of the major Indian pharmaceutical firms, including Sun Pharma, Cadilla

Healthcare and Piramal Life Sciences, had applied for conducting clinical trials on at

least 12 new drugs in 2010, indicating a growing interest in new drug discovery

research.

Generics

India tops the world in exporting generic medicines worth US$ 11 billion and

currently, the Indian pharmaceutical industry is one of the worlds largest and most

developed.

Moreover, the Indian generic drug market to grow at a CAGR of around 17 per cent

between 2010-11 and 2012-13. Union Minister of Commerce and Industry and

Minister for Trade and Industry, Singapore, have signed a 'Special Scheme for

Registration of Generic Medicinal Products from India' in May 2010, which seeks to

fast-track the registration process for Indian generic medicines in Singapore.

Advantage India

The Indian Pharmaceutical Industry, particularly, has been the front runner in a wide

range of specialties involving complex drugs' manufacture, development and

technology. With the advantage of being a highly organized sector, the

pharmaceutical companies in India are growing at the rate of $ 4.5 billion, registering

further growth of 8 - 9 % annually.

More than 20,000 registered units are fragmented across the country and reports say

that 250 leading Indian pharmaceutical companies control 70% of the market share

with stark price competition and government price regulations.

Competent workforce: India has a pool of personnel with high managerial and

technical competence as also skilled workforce. It has an educated work force and

English is commonly used. Professional services are easily available.

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Cost-effective chemical synthesis: Its track record of development, particularly in the

area of improved cost-beneficial chemical synthesis for various drug molecules is

excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk

drugs.

Legal & Financial Framework: India has a 53 year old democracy and hence has a

solid legal framework and strong financial markets. There is already an established

international industry and business community.

Information & Technology: It has a good network of world-class educational

institutions and established strengths in Information Technology.

Globalization: The country is committed to a free market economy and globalization.

Above all, it has a 70 million middle class market, which is continuously growing.

Consolidation: For the first time in many years, the international pharmaceutical

industry is finding great opportunities in India. The process of consolidation, which

has become a generalized phenomenon in the world pharmaceutical industry, has

started taking place in India.

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KEY POINTS REGARDING PHARMACEUTICAL INDUSTRY

Supply

Higher for traditional therapeutic segments, this is typical of a developing market. Relatively

lower for lifestyle segment.

Demand

Very high for certain therapeutic segments. Will change as life expectancy, literacy increases.

Barriers to entry

Licensing, distribution network, patents, plant approval by regulatory authority.

Bargaining power of suppliers

Distributors are increasingly pushing generic products in a bid to earn higher margins.

Bargaining power of buyers

High, a fragmented industry has ensured that there is widespread competition in almost all

product segments. Currently, the domestic market is also protected by the DPCO.

Competition

High. Very fragmented industry with the top 300 (of 24,000 manufacturing units) players

accounting for large chunk of sales. Top 20 companies account for 60% of the IPM sales.

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INDIAN PHARMACEUTICAL INDUSTRY

Introduction

The Indian pharmaceuticals market is third largest in terms of volume and thirteen

largest in terms of value, as per a pharmaceuticals sector analysis report by equity

master. The market is dominated majorly by branded generics which constitute nearly

70 to 80 per cent of the market. Considered to be a highly fragmented industry,

consolidation has increasingly become an important feature of the Indian

pharmaceutical market.

India has achieved an eminent global position in pharmacy sector. The country also

has a huge pool of scientists and engineers who have the potential to take the industry

to a very high level.

Market Size

The Indian pharmaceutical industry is estimated to grow at 20 per cent compound

annual growth rate (CAGR) over the next five years, as per India Ratings, a Fitch

Group company. Indian pharmaceutical manufacturing facilities registered with US

Food and Drug Administration (FDA) as on March 2014 was the highest at 523 for

any country outside the US. We expect the domestic pharmacy market to grow at 10-

12 per cent in FY15 as compared to 9 per cent in FY14, as per a recent report from

Centrum Broking. The domestic pharma growth rate was 11.9 per cent in October

2014, highlighted the report.Gujarat clocked the highest growth rate in

pharmaceuticals market at 22.4 per cent during November 2014, surpassing the

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industry growth rate, which grew by 10.9 per cent, as per data from the market

research firm AIOCD Pharma softtech AWACS.

Also, growing at an average rate of about 20 per cent, India's biotechnology industry

comprising bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry and

bioinformatics may reach the US$ 7 billion mark by the end of FY15, according to an

industry body. Bio-pharma is the largest sector contributing about 62 per cent of the

total revenue, with revenue generation to the tune of over Rs 12,600 crore (US$ 2.03

billion). The bio-pharma sector comprises vaccines, therapeutics and diagnostics.

Investments

The Union Cabinet has given its approval to amend the existing FDI policy in

the pharmaceutical sector in order to cover medical devices. The Cabinet has

allowed FDI up to 100 per cent under the automatic route for manufacturing of

medical devices subject to specified conditions.

The drugs and pharmaceuticals sector attracted cumulative foreign direct

investment (FDI) inflows worth US$ 12,813.02 million between April 2000

and December 2014, according to data released by the Department of

Industrial Policy and Promotion (DIPP).

Stelis Biopharma has announced the ground-breaking for construction of its

customized, multi-product, biopharmaceutical manufacturing facility at Bio-

Xcell Biotechnology Park in Nusajaya, Johor, Malaysia's park and ecosystem

for industrial and healthcare biotechnology at a total project investment

amount of US$ 60 million.

Pharma major Strides Arco lab has entered into a licensing agreement with

US-based Gilead Sciences Inc to manufacture and distribute the latter's low-

cost Tenofovir Alafenamide (TAF) product used for HIV treatment in

developing countries. The license to manufacture Gilead's low-cost drug

extends to 112 countries.

Apollo Hospitals Enterprise (AHEL) plans to add another 2,000 beds over the

next two financial years, at a cost of around Rs 1,500 crore (US$ 242.57

million), as per Mr. Prathap C Reddy, Founder and Executive Chairman,

Apollo Hospitals.

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CDC, the UK’s development finance institution, has invested US$ 48 million

in Narayana Hridayalaya hospitals, a multi-speciality healthcare provider.

With this investment, Narayana Health will expand affordable treatment in

eastern, central and western India.

Cadila Healthcare Ltd has announced the launch of a biosimilar for

Adalimumab - the world’s largest selling drug for rheumatoid arthritis and

other auto immune disorders. The drug will be marketed under the brand name

Exemptia at one-fifth of the price for the branded version-Humira.

Cadila’sbiosimilar is the first to be launched by any company in the world and

is a finger print match with the original in terms of safety, purity and potency

of the product, as per the company.

Government Initiatives

The Addendum 2015 of the Indian Pharmacopoeia (IP) 2014 is published by the

Indian Pharmacopoeia Commission (IPC) on behalf of the Ministry of Health &

Family Welfare, Government of India. The addendum would play a significant role in

improving the quality of medicines which in turn promote public health and

accelerate the growth and development of pharma sector.

The Government of India has unveiled 'Pharma Vision 2020' aimed at making India a

global leader in end-to-end drug manufacture. It has reduced approval time for new

facilities to boost investments. Further, the government has also put in place

mechanisms such as the Drug Price Control Order and the National Pharmaceutical

Pricing Authority to address the issue of affordability and availability of medicines.

Romania is keen to tie up with the Indian pharmaceutical companies for research and

develop new drugs. "Romania will collaborate with India for license acquisition to

sale India's drugs in Europe," said Mr. Mario Crute, Counselor in Ministry of health

in Romania at GCCI. The country will tie up with the Indian pharmaceutical

companies for research and develop new drugs.

Some of the major initiatives taken by the government to promote the pharmaceutical

sector in India are as follows:

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Indian and global companies have expressed 175 investment intentions worth Rs

1,000 crore (US$ 161.78 million) in the pharmaceutical sector of Gujarat. The

memorandums of understanding (MOUs) would be signed during the Vibrant Gujarat

Summit.

Telangana has proposed to set up India's largest integrated pharmaceutical city spread

over 11,000 acres near Hyderabad, complete with effluent treatment plants and a

township for employees, in a bid to attract investment of Rs 30,000 crore (US$ 4.85

billion) in phases. Hyderabad, which is known as the bulk drug capital of India,

accounts for nearly a fifth of India's exports of drugs, which stood at Rs 90,000 crore

(US$ 14.56 billion) in 2013-14.

Road Ahead

The Indian pharma market size is expected to grow to US$ 85 billion by 2020. The

growth in Indian domestic market will be on back of increasing consumer spending,

rapid urbanization, raising healthcare insurance and so on.

Going forward, better growth in domestic sales will depend on the ability of

companies to align their product portfolio towards chronic therapies for diseases such

as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers are on the

rise.

Emerging Trend

The Indian pharmaceutical industry is now discovering new opportunities of growth

in clinical research, contract research, manufacturing and innovation opportunities.

This path can lead the Indian pharmaceutical industry to huge success endeavors.

Research & Development

Research & Development is the key to the future of pharmaceutical industry. The

pharmaceutical advances for considerable improvement in life expectancy and health

all over the world are the result of a steadily increasing investment in research. There

is considerable scope for collaborative R & D in India. India can offer several

strengths to the international R & D community. These strengths relate to availability

of excellent scientific talents who can develop combinatorial chemistry, new synthetic

molecules and plant derived candidate drugs

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The R & D expenditure by the Indian pharmaceutical industry is around 1.9 per cent

of the industry‟s turnover, which is a little low as compared to foreign research based

pharmaceutical companies. However, now that India is entering into the Patent

protection area, many companies are spending relatively more on R & D. When it

comes to clinical evaluation at the time of multi-center trials, India is providing a

strong base considering the real availability of clinical materials in diverse therapeutic

areas. According to a survey by the Pharmaceutical Outsourcing Management

Association and Bio/Pharmaceutical Outsourcing Report, pharmaceutical companies

are utilizing substantially the services of Contract Research Organizations (CROs).

Indian Pharmaceutical Industry, with its rich scientific talents, provides cost-effective

clinical trial research. It has an excellent record of development of improved, cost-

beneficial chemical syntheses for various drug molecules. Some MNCs are already

sourcing these services from their Indian affiliates.

Product development

For years, firms have made their ways into the global market by researching generic

competitors to patented drugs and following up with litigation to challenge the patent.

This approach remains untouched by the new patent regime and looks to increase in

the future.However, those that can afford it have set their sights on an even higher

goal: new molecule discovery. Although the initial investment is huge, companies are

lured by the promise of hefty profit margins and the recognition as a legitimate

competitor in the global industry.

Small and medium enterprises

The excise structure changed so that companies now have to pay a 16 per cent tax on

the maximum retail price of their products, as opposed to on the ex-factory price.

Consequently, larger companies are cutting back on outsourcing and what business is

left is shifting to companies with facilities in the four tax-free states - Himachal

Pradesh, Jammu & Kashmir, Uttaranchal and Jharkhand. SMEs have been finding it

difficult to find the funds to upgrade their manufacturing plants, resulting in the

closure of many facilities. In terms of the global market, India currently holds a

modest 1-2 per cent share, but it has been growing at approximately 10 per cent per

year.

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Revenue of Indian pharmaceutical industry

The Indian pharmaceuticals market is expected to expand at a CAGR of 23.9 per cent

to reach US$ 55 billion by 2020.

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Swot Analysis of Indian Pharmaceutical Industry

Strength

Low cost of raw material (API) for production. Large pool of installed capacities with

skilled manpower. Efficient technologies for large number of Generics. Large pool of

increasing liberalization of government policies.

Weakness

Very low R&D facilities. Fragmentation of installed capacities. Low technology level

of Capital Goods of this section. Non-availability of major intermediaries for bulk

drugs. Lack of experience to exploit efficiently the new patent regime. Low level of

strategic planning for future and also for technology forecasting.

Opportunities

Growth in the emerging branded generic market Growing incomes. Growing attention

forhealth.New therapy approaches. New delivery systems. Spreading attitude for soft

medication (OTC drugs).Spreading use of Generic Drugs. Easier international trading.

Threats

Stiff Competition both from local as well as global players particularly from generic

products. Increased due diligence and action on default compliance with standards

High Cost of discovering new products and fewer discoveries Stricter registration

procedures.

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Different departments working in the head office are

1.Marketing and Sale

2. Human Resources

3. Financial Accounting & Revenue Assurance

4. Administration

5. Procurement & Logistics

6. Quality Control

7. Quality Assurance

8. International Business (Exports)

9. Information Technology

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CHALLENGES & FUTURE GROWTH

Challenges

Over the past decade, pharmaceutical companies have entered a difficult period where

shareholders, the market and regulators have created significant pressures for change

within the industry. The core issues for most of drug companies are declining

productivity of in-house R & D, patent expiration of number of block buster drugs,

increasing legal and regulatory concern, and pricing issue. As a result larger

pharmaceutical companies are shifting to new business model with greater

outsourcing of discovery services, clinical research and manufacturing.

Current global financial conditions and the threat of a broad recession accelerated the

timetable for implementing transformational changes in global organizations, as the

industry confronts lower corporate stock prices and an increasingly cost-averse

customer. Leaders of the largest global pharmaceutical companies recognize the need

for transformational change in their organizations, but will need to move swiftly to

ensure sustained growth.

Transformations in the business model of larger pharmaceutical industry spell more

opportunities for Indian pharmaceutical companies. Pharmaceutical production costs

are almost 50 percent lower in India than in western nations, while overall R&D costs

are about one-eighth and clinical trial expenses around one-tenth of western levels.

The Indian stock market may be dreading a possible recession but Indian pharma

companies seem unfazed by slowdown fears. Riding on better sales in the domestic

and export markets, Indian pharmaceutical industry is expected to continue with its

good perform ance. Today Indian pharmaceutical Industry can look forward to the

years to come, with great expectations. There are opportunities in expanding the

range of generic products as more molecule come off patent, outsourcing, and above

all, in focusing into drug discovery as more profits come from traditional plays.

At the same time, the Indian Pharma Industry would have to contend with several

challenges particularly the :-

• Effects of new product patent

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• Drug price control

• Regulatory reforms

• Infrastructure development

• Quality management and .

Growth

The Indian pharmaceutical market reached US$ 10.04 billion in size, with a value-

wise growth rate of 20.4 per cent over the previous year's corresponding period on a

Moving Annual Total (MAT) basis for the 12 months ended July 2010.

Cipla maintained its leadership position in the domestic market with 5.27 per cent

share followed by Ranbaxy. The highest growth in the domestic market was for

Mankind Pharma which grew 37.2 per cent. Leading companies in the domestic

market such as Sun Pharma(25.7per cent), Abbott (25 per cent), Zydus Cadila (24.1

per cent), Alkem Laboratories (23.3 per cent), Pfizer (23.6 per cent), GSK India (19

per cent), Piramal Healthcare (18.6 per cent) and Lupin (18.8 per cent) had impressive

growth during July 2010, shows the data.

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VARIOUS COMPANIES ON WHICH M.I.S. ANALYSIS HAS

BEEN DONE

MEDIFORCE HEATHCARE PVT. LTD.

SIRMOUR REMEDIES PVT. LTD.

COPMED PHARMACEUTICALS PVT. LTD. UNIT-I

COPMED PHARMACEUTICALS PVT. LTD. UNIT-II

COPMED PHARMACEUTICALS PVT. LTD. UNIT-III

PHARMA FORCE LABS UNIT-I

PHARMA FORCE LABS UNIT-II

PHARMA FORCE LABS UNIT-III

RELAX PHARMACEUTICALS UNIT-I

RELAX PHARMACEUTICALS UNIT-II

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MEDIFORCE HEALTHCARE PVT.LTD.

Mediforce Healthcare Private Limited is a Private Company incorporated on 14

February 2001. It is classified as Indian Non-Government Company and is registered

at Registrar of Companies, Kanpur. Its authorized share capital is Rs. 15,000,000 and

its paid up capital is Rs. 11,400,000.Mediforce Healthcare Private Limited's Annual

General Meeting (AGM) was last held on 29 September 2014 and as per records from

Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March

2014.

MediforceHeathcare Pvt. Ltd. Is a third party manufacturing unit of UnikindPharma

working for Mankind Pharma.

Directors of Mediforce Healthcare Private Limited are Veer Pal Singh and

BrijeshwarDuttTyagi.

Mediforce Healthcare Private Limited's Corporate Identification Number is (CIN)

U501397UP2001PTC025873 and its registration number is 25873.Its Email address is

[email protected] and its registered address is A-25, DEFENCE COLONY,

MEERUT - 250001, Uttar Pradesh INDIA.

Current status of Mediforce Healthcare Private Limited is - Active.

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PRODUCTS OF MEDIFORCE HEATHCARE PVT.LTD.

Product Name - Geniric Code

AMLOKIND-5 - Amlodipine Besilate tablets IP

AMLOKIND-10 - Amlodipine Besilate tablets IP

AMLOKIND-AT - Amlodipine tablets

RANIDOM - Omeprazole Magnesium tablets

RANISPAS - Omeprazole Magnesium tablets

AMLOKIND-L - Losartan potassium tablets IP

RABEKIND-20 - Rabeprazole Sodium tablets IP

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SIRMOUR REMEDIES PVT.LTD.

Sirmour Remedies Private Limited is a Private Company incorporated on 12 October

1989. It is classified as Indian Non-Government Company and is registered at

Registrar of Companies, Himachal Pradesh. Its authorized share capital is Rs.

20,000,000 and its paid up capital is Rs. 10,000,000.Sirmour Remedies Private

Limited's Annual General Meeting (AGM) was last held on 30 September 2014 and

as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last

filed on 31 March 2014.Sirmour Remedies Pvt. Ltd. is a third party manufacturing

unit of UnikindPharma working for Mankind Pharma.Directors of Sirmour Remedies

Private Limited are Veer Pal Singh, ShyamLal and BrijeshwarDuttTyagi.Sirmour

Remedies Private Limited's Corporate Identification Number is (CIN)

U15311HP1989PTC009770 and its registration number is 9770.

Its Email address is [email protected] and its registered address is VPO Majra

Sirmour ,Paonta Sahib - 173021, Himachal Pradesh INDIA.

Current status of Sirmour Remedies Private Limited is - Active.

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PRODUCTS OF SIRMOUR REMEDIES PVT LTD.

Product Name - Generic Code

BRUTACEF DRY SYRUP - Cefixime Oral suspension

MAHACEF DRY SYRUP - CefpodoximeProxetil oral suspension

GUDCEF DROPS - CefpodoximeProxetil Oral suspension

GUDCEF DS DROPS - CefpodoximeProxetil oral suspension

GUDCEF DRY SYRUP - Cefixime Oral suspension

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COPMED PHARMACEUTICALS PVT.LTD.

Copmed Pharmaceuticals Private Limited is a Private Company incorporated on 13

September 1988. It is classified as Indian Non-Government Company and is

registered at Registrar of Companies, Delhi. Its authorized share capital is Rs.

20,000,000 and its paid up capital is Rs. 9,600,000.Copmed Pharmaceuticals Private

Limited's Annual General Meeting (AGM) was last held on 29 September 2014 and

as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last

filed on 31 March 2014.Copmed Pharmaceuticals Pvt. Ltd. Is a third party

manufacturing unit of UnikindPharma working for Mankind Pharma. Directors of

Copmed Pharmaceuticals Private Limited are Veer Pal Singh and

BrijeshwarDuttTyagi. Copmed Pharmaceuticals Private Limited's Corporate

Identification Number is (CIN) U74899DL1988PTC033151 and its registration

number is 33151.Its Email address is [email protected] and its registered

address is 7,VASANT MARG, IIND FLOOR VASANT VIHAR, NEW DELHI -

110057, Delhi INDIA.

Current status of Copmed Pharmaceuticals Private Limited is - Active.

There are three units of CopmedPharmaceuticals in Paonta Sahib, DisttSirmour,

(H.P.)

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COPMED PHARMACEUTICALS PVT. LTD. UNIT-I

Address- Plot no-50 GONDPUR INDUSTRIALAREA, PAONTA SAHIB, HP

PRODUCTS OF COPMED PHARMACEUTICALS PVT. LTD. UNIT-I


THYROCHEK-100 TABLETS - L-Thyroxin Sodium Tablets

ELECTROKIND (4.3G) - Oral Rehydration salt

ELECTROKIND-Z(4.3G) - Oral Rehydration salt

ELECTROKIND (21.5G) - Oral Rehydration salt

ARGIPRG (6.5G) - Oral Rehydration salt

ARGIPRG (5.0G) - Oral Rehydration salt

ELECTROKIND-Z (21.5G) - Oral Rehydration salt

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COPMED PHARMACEUTICALS PVT. LTD. UNIT-II

Address- Plot no- 45, GONDPUR INDUSTRIALAREA, PAONTA SAHIB, HP

PRODUCTS OF COPMED PHARMACEUTICALS PVT. LTD. UNIT-II


SUCRADAY SUSPENSSION - Sucralaphate suspension

SUCRADAY -O SUSPENSION - Sucralaphate+Oxetacaine

CIPROGYL SUSPENSION - Ciprofloxacin and Metronidazole

TEDYKOFF COUGH SYRUP - Chlorpheniramine Maleate

CODISTAR-DX - Dextromethorphan Hydrobromide

ZENFLOX-OZ SUSPENSION - Ofloxacin and Ornidazol

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Address- Plot no- 25 & 26, GONDPUR INDUSTRIALAREA, PAONTA SAHIB, HP

PRODUCTS OF COPMED PHARMACEUTICALS PVT. LTD. UNIT-III


MEFKIND FORT - Ofloxacin suspension

MEFKIND-P - Mefenamic acid oral suspension

NOBLOK SYRUP - SodiumCitrate syrup

HICOPE SYRUP - Hydroxyzine Hydrochloride oral

NOBEL PLUS - Paracetamol&Mefenamic Acid

ZENFLOX SUSPENSION - Paracetamol&Mefenamic Acid

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PHARMA FORCE LABS PVT.LTD.

Pharma Force Labs is a member of Mankind group, a leading brand in pharmacy.

Pharma Force Labs is a Private Company incorporated on 13 September 1988. It is

classified as Indian Non-Government Company and is registered at Registrar of

Companies, Delhi. Its authorized share capital is Rs. 20,000,000 and its paid up

capital is Rs. 9,600,000. Pharmaforcelabs Annual General Meeting (AGM) was last

held on 29 September 2014 and as per records from Ministry of Corporate Affairs

(MCA), its balance sheet was last filed on 31 March 2014.Pharmaforcelabs is a third

party manufacturing unit of Unikind Pharma working for Mankind Pharma.Directors

of Pharmaforcelabs Private Limited are Veer Pal Singh and Brijeshwar Dutt Tyagi.

Pharma Force Labs Corporate Identification Number is (CIN)

U74899DL1988PTC033151 and its registration number is 33151.Its Email address is

[email protected] and its registered address is 7,VASANT MARG, IIND

FLOOR VASANTVIHAR,NEWDELHI-110057,Delhi,INDIA.

Current status of Pharmaforcelabs is - Active.

There are three units of Pharmaforcelabs in Paonta Sahib, Distt Sirmour, (H.P.)

32

PHARMA FORCE LABS PVT. LTD. UNIT-I

ADDRESS-- Plot no- 76, GONDPUR INDUSTRIALAREA, PAONTA SAHIB, HP

PRODUCTS OF PHARMA FORCE LABS UNIT-I


CODISTAR COUGH SYRUP - Codeine Phosphate Syrup

T-98 SUSPENSION - Acetaminophen oral suspension

T-98PLUS SUSPENSION - Promethazine Hydrochloride

T-98 DS SUSPENSION - Acetaminophen oral suspension

TEDYKOFF-LX COUGH SYRUP - Pholcodine syrup

33

PHARMA FORCE LABS PVT. LTD. UNIT-II

ADDRESS-- Plot no- 86,87, GONDPUR INDUSTRIALAREA, PAONTA SAHIB,

HP.

PRODUCTS OF PHARMA FORCE LABS UNIT-II


CEFAKIND-125 DT TABLETS - CefpodoximeProxetile Dispersible

Tablets

GUDCEF-200 TABLETS - Cefixime Tablets

GUDCEF-100 DT TABLETS - Cefixime Dispersible Tablets

GUDCEF-50 DT TABLETS - Cefixime Dispersible Tablets

MAHACEF-200 - Cefixime and Ofloxacine tablets

MAHACEF-50 DT - Cefuroxime Axetil Dispersible Tablets

MAHACEF-100 DT - Cefuroxime Axetil Dispersible Tablets

34

PHARMA FORCE LABS PVT. LTD. UNIT-III

ADDRESS-- Plot no- 24,25, GONDPUR INDUSTRIALAREA, PAONTA SAHIB,

HP.

PRODUCTS OF PHARMA FORCE LABS UNIT-III


MAHACEF –PLUS - Cefixime and Ofloxacine tablets

ZENFLOX-PLUS 100 - Cefixime and Ofloxacine tablets

MAHACEF-OZ - Cefixime and Ornidazole Tablets

MAHACEF-400 - Cefixime Tablets

MAHACEF-PLUS 100 - Cefixime and Ofloxacine Dispersible tablets

35

RELAX PHARMACEUTICALS

Relax Pharmaceuticals is an Ethical and Generic Pharmaceutical manufacturer of high

quality products as per GMP Standards.Relax Pharmaceuticals was promoted in 1994

by visionaries Shri K. D. Patel, a Pharmacist and Shri D. R. Patel, an

Industrialist. Shri K. D. Patel is a Bachelor in Pharmacy who has overall experience

of 15 years in production of various pharmaceutical dosage companies. He also had a

rich stint of 5 years as Work Manager in an Export Oriented Firm M/s Hamax

Pharmaceuticals, Baroda. Shri D. R. Patel is a well known industrialist having a sound

financial background. He is engaged in manufacturing of epoxy moulded, current

transformers and Resin Products. He enjoys a credible name due to superior quality of

products which are well accepted in Government Departments and reputed Private

Companies. The company has gradually established a strong foothold on production

of various pharmaceuticals which covers a comprehensive range:Tablets: Antacids,

Analgesics, Antihypertensives Sedatives & hypnotics, Anti diahhoreals. CAPSULES :

Antibiotics, B-Complex &Haematinics. Liquid Orals: C-Complex, Haematinics,

Antacids Cough Syrups, Protein Syrup. Anti bacterials, Anti diahhoreals etc.Current

status of Relax Pharmaceuticals- Active.

Relax Pharmaceuticals is working in Paonta Sahib under 2 units.

36

RELAX PHARMACEUTICALS UNIT-I

ADDRESS- Plot No.46, GONDPUR INDUSTRIALAREA, PAONTA SAHIB, HP.

PRODUCTS OF RELAX PHARMA PVT. LTD. UNIT-I


UNWANTED TABLETS - Mifepristone Tablets

GYNASET TABLETS - Norethistrone Tablets

UNWANTED-72TABLETS - Levonorgestrel Tablets

PRESTAKIND TABLETS - Misoprostol Tablets

THYROCHEK-50 TABLETS - Thyroxin Sodium Tablets

UNWANTED-KIT - Mifepristone&Misoprostol Tablets

UNWANTED-21 DAYS - levonorgestrel Tablet

37

RELAX PHARMACEUTICALS UNIT-II

ADDRESS- Plot No.58, GONDPUR INDUSTRIALAREA, PAONTA SAHIB, HP.

PRODUCTS OF RELAX PHARMA PVT. LTD. UNIT-II


BRUTACEF-200 TABLETS - Cefixime Tablets

BRUTACEF-O TABLTES - Cefixime and Ofloxacin Tablets

BRUATCEF-O 100 TABLETS - Ofloxacin Dispersible Tablets

BRUTACEF -AZ 250 - Cefixime and Azithromycin Tablets

BRUTACEF-AZ500 - Cefixime and Azithromycin Tablets

CEFAKIND-500 TABLETS - Cefuroxime Axetil Tablets

CEFAKIND-250 TABLETS - Cefuroxime Axetil tablets

38

Management Information Systems (MIS)

An MIS provides managers with information and support for effective decision

making, and provides feedback on daily operations.

A manufacturing MIS can help managers monitor a manufacturing process to

maximize the value to processes within an organization.

Information is provided to managers through various summary reports that are usually

generated through accumulation of transaction processing data.

Each MIS is an integrated collection of subsystems, which are typically organized

along functional lines within an organization.

Thus, a financial MIS includes subsystems that address financial reporting, profit and

loss analysis, cost analysis, and the use and management of funds.

Sources of Management Information

Management information systems is one of the systems that managers use to obtain

information. Other systems include decision support systems, executive support

systems and expert systems.

39

Data Inputs to an MIS

1. Most of the data source for MIS is the organization’s various transaction

processing systems that capture and store data from ongoing business transactions.

2. Data may also come from various functional areas (accounting, finance, sales,

etc.) of an organization.

3. External sources of data may include customers, suppliers, competitors,

stockholders, and so on.

Outputs of an MIS

1. The output of most management information systems is a collection of reports that

are distributed to managers. These include scheduled reports, key-indicator

reports, demand reports, exception reports, and drill-down reports.

Characteristics of an MIS

A management information system performs the following functions:

1. Provides reports with fixed and standard formats:

2. All reports are produced in an easy-to-read and standard format, so managers in

various functional areas find consistencies in reports.

3. Produces hard-copy and soft-copy reports:

4. Standard reports are typically printed on papers and they are termed as hard copy

5. Soft copy reports are displayed on computer screens.

40

Uses internal data stored in the computer system:

1. MIS reports use primarily internal sources of data that are contained in

computer databases (through TPSs).

2. End users are able to develop their own custom reports:

3. Although most of the standard reports are designed by and analyst, the users

should be able to develop reports on an ad-hoc basis.

Functional Aspects of the MIS

1. A management information system is organized according to the business

functionality of an organization.

2. Thus an MIS contains systems in areas of accounting, human resources,

marketing, manufacturing, research and development, legal services,

operations/support, and finance.

3. Each functional system uses its own set of function-specific subsystems, all of

which interface with both the TPS and the MIS.

4. Each functional system requires different information and support for decision

making; but they share some common information needs.

Financing decisions are one of the most critical areas and the challenging job for the

finance managers, because, It has direct impact on the financial performance and

capital structure of the companies. The finance manager of every company is always

looking to maximize the economic welfare of the owners as represented by the market

value of the firm. For this purpose, he has to take number of decisions like

investment, financing and dividend decisions. The financing decision is mainly

involves two choices. The first is the dividend choice – the distribution of retained

earnings to be ploughed back and to be paid out as dividends.

The second is a choice of capital structure – the proportion of external finance to be

borrowed and the proportion to be raised in the form of new equity. In real sense, the

decisions about both the choice should not impact on the value of the firm. Because

these decisions are related to either the form of distribution, type of security, or make

up of the ownership structure, but not to the investment decision. Generally, the firms

41

have the internal and external sources of fund in its capital structure to finance their

investments. Internal sources include retained earnings and depreciation; whereas the

external sources consist of new borrowings or the issue of shares.

Capital structure decisions have great impact on the firm’s financial

performance.

Exactly how firms choose the amount of debt and equity in their capital structures

remains an enigma. Capital structure is the combination of debt and equity that

finance the organization's strategic plan. The effective management of capital

structure ensures the availability of required fund to finance the future growth and

enhance the financial performance. The debt equity relationship is depends upon the

nature of industries involved like company's line of business and its development. A

company is said to be highly leveraged, if it includes the maximum debt source of

finance in its capital structure, which results, the company find its freedom of action

restricted by its creditors and may have its profitability affected with the payment of

high interest costs. There is a significant difference between the industry and the

individual companies within an industry in terms of capital structure. There are

number of factors influencing the capital structure decision of the company, but the

judgment of the person making the capital structure decision plays a crucial part. Two

similar companies can have different capital structures as per the different judgement

of decision makers with the significance of various factors. Thus, the financing

decisions have no affect on firm value, as it is the residue of the more important

investment decisions. Similarly, this paper is an attempt to determining the impact of

variations in the capital structures of various pharmaceutical companies on their

investment pattern over the period of time and highlighting the importance of debt

capital and equity capital to determining the value of investments of the companies.

42

In the recent time, financial manager always plans an optimum capital structure for

his company to obtain the higher market value per share. An optimal capital structure

is usually defined as one that will maximizing shareholder’s wealth by minimize the

firm's cost of capital. Capital structure decisions have great impact on the firm’s

financial performance. Exactly how firms choose the amount of debt and equity in

their capital structures still an enigma. There are number of factors influencing the

capital structure decision of the company, but the judgment of the person making the

capital structure decision plays a crucial part. Two similar companies can have

different capital structures as per the different judgement of decision makers with the

significance of various factors. Thus, the financing decisions have no affect on firm

value, as it is the residue of the more important investment decisions. Therefore,

firms, managers, and investors, devote more time and resources to making the

financing decisions about dividends and capital structure. Similarly, this study also

conclude that the capital structure decision of the pharmaceutical companies has very

little effect on its investment pattern, which defines that the company is using long

term sources of funds to finance its current assets and its operational activities of its

business with the object to attain the long term solvency and maximising profitability

with least cost of capital.

Since, last two decades of Indian economy, there is a continue research on company

financing activities, particularly aimed at understanding how companies finance their

investments and what source they used to finance. In practice, it is observed that

finance managers use different combinations of debt and equity to meet the various

financial requirements of the company at least cost and risk and for the long term

benefit of the company.

43

Financial MIS

Inputs to the Financial MIS

Strategic plan or corporate policies

Contains major financial objectives and often projects financial needs.

Transaction processing system (TPS)

Important financial information collected from almost every TPS - payroll, inventory

control, order processing, accounts payable, accounts receivable, general ledger.

External sources

Annual reports and financial statements of competitors and general news items.

44

Financial MIS Subsystems and Outputs

1. Profit/loss and cost systems

2. Auditing

3. Internal auditing

4. External auditing

5. Uses and management of funds

Accounting MIS

1. Provides aggregated information on accounts payable, accounts receivable,

payroll, and other applications.

2. Smaller companies may retain an outside accounting firm to assist in

accounting functions.

MIS for Competitive Advantage

1. Provides support to managers as they work to achieve corporate goals.

2. Enables managers to compare results to established company goals and identify

problem areas and opportunities for improvement.

45

According to John Doolittle,

Developments in medical technology have long been confined to procedural or

pharmaceutical advances, while neglecting a most basic and essential component

of medicine: patient information management.

According to Paul Farmer,

It is clear that the pharmaceutical industry is not, by any stretch of the

imagination,doing enough to ensure that the poor have access to adequate medical

care.

46

SALES , OVERHEADS AND NET PROFIT OF COMPANIES OF UNIKIND

PHARMA as on March 2015

SALES

COMPANIES SALES IN 2015 SALES IN 2014 PERCENTAGE CHANGE IN SALES

PFL-1 148101816 134084809

110%

PFL-2 38835434 82873850

47%

PFL-3 25122586 19815029

127%

MEDIFORCE 51591647 65831709

78%

SRL 129717207 113824021

114%

COPMED-1 39754873 30011618

132%

COPMED-2 272386109 276835750

98%

COPMED-3 14647997 28869579

51%

RELAX-1 46458942 110097670

42%

RELAX-2 224294325 234223465

96%

47

OVERHEADS

COMPANIES

OVERHEADS IN

2015

OVERHEADS IN

2014

PERCENTAGE CHANGE IN

OVERHEADS

PFL-1

9353212 9264452

101%

PFL-2

5037284 3735640

135%

PFL-3

1594055 937075

170%

MEDIFORCE

6400464 6170462

104%

SRL

11022916 9216938

120%

COPMED-1

2123318 2223115

96%

COPMED-2

11182876 12601973

89%

COPMED-3

4140592 4591063

90%

RELAX-1

6266830 6789840

92%

RELAX-2

8816471 8435952

105%

48

NET PROFIT

COMPANIES NET PROFIT IN 2015

NET PROFIT IN

2014

PERCENTAGE CHANGE IN NET

PROFIT

PFL-1

15733948 13135083

120%

PFL-2

5244075 15039204

35%

PFL-3

2612145 3053341

86%

MEDIFORCE

8568007 14524424

59%

SRL

17722273 17698370

100%

COPMED-1

6828160 4230942

161%

COPMED-2

36010901 40962131

88%

COPMED-3

1491662 7150903

21%

RELAX-1

3285860 14917201

22%

RELAX-2

22060374 23857054

92%

49

RESEARCH METHODOLOGY

Introduction:

This study focused on the M.I.S. Report of the 10 companies of Pharma. I thoroughly

studied the M.I.S. Report and compared the sales, profits, overheads of all the companies

and found a lot of new things from it.

3.1 The objectives of the study are as following:

Analyzing the M.I.S. Report of various pharmaceutical companies.

Finding the areas where the companies can invest in next year .

Finding the areas where the companies can reduce their expenses.

Measuring the increased or decreased sales of various companies by comparing

their sales from last year.

3.2 DIFFERENT RESEARCH DESIGN:-

Research design can be commonly described if we categorize them as:-

Exploratory research design.

Descriptive research design

EXPLORATORY RESEARCH STUDY:

The major purpose of exploratory research is to identify the problem more specifically.

Exploratory research studies are used in the initial stages of the research. The focus is the

exploratory researches discovery of ideas.

50

DESCRIPTIVE RESEARCH STUDY:

A research to describe something. Descriptive studies can tell us proportions of high and

low income customer in a particular territory. Objective of the study is to answer the

who, what, when, where and how the subject.

I used descriptive research in my report because I have taken the sales, overheads and net

profit from 10 pharmaceutical companies of Paonta Sahib.

3.3 DATA COLLECTION

Primary data

Secondary data

Primary Data: that is through the discussion with the various officers working in the

various sections of the finance department.

Secondary Data: data collected by other persons and which have already been passed

through the statistical process.

Sources of secondary data: reports and accounts for the concerned company for the last

4-5 years. Company records & profile.

I used the primary data in my report as I am having M.I.S. report of 10 pharmaceutical

companies on which I had done the research.

51

Data Analysis and Interpretation

PHARMA FORCE LABS UNIT-I

Description 2015 2014

Sales Value 148,101,816 134,084,809

Material Consumed 123,014,657 111,685,275

Net Contribution (NC) 25,087,159 22,399,535

Power & DG Expense 1,052,517 1,187,347

Consumable Expenses 380,579 254,199

Laboratory & Testing Expense 557,171 430,155

Salary & Wages Expenses 3,427,295 3,747,559

Repair & Maintenance Expenses 411,757 792,644

Others 3,523,892 2,852,548

Total Overheads (OH) 9,353,212 9,264,452

Profit before Tax (PBT) 15,733,948 13,135,083

INTERPRETATION:-

The sales of PFL-I has increased by 9.46% but the overheads are almost same. The

overheads are not increasing which is a good sign for the future of the company. The unit

is growing very fast as the profit of the company has increased by 16.51% as compared to

last year.The repair and maintenance expenses of P.F.L.-1 have reduced by 50% as

compared to last year which is a very good sign for the future of the company.

52

PHARMA FORCE LABS UNIT-II


Sales Value 38,835,434 82,873,850



Power & DG Expense 1,262,975 648,449


Laboratory & Testing

Expense 92,927 146,718


Repair & Maintenance

Expenses 152,788 107,726

Others 1,099,954 1,479,915



INTERPRETATION:-

The sales of PFL-II & COPMED-I is almost same in current year that is Rs. 38835434

and Rs. 39754873 respectively but there is huge difference in the overheads of both the

companies, the overheads of P.F.L.-II are increased by 31% and due to this the PFL-II is

having less profit as compared to last year profit which is reduced by 76%. The sales of

this unit is reduced by 53% as compared to last year. The power & DG expenses are

increased by 94% as compared to last year. The salary and wages expenses are almost

doubled but the sales are reduced by 53% as compared to last year.

53

PHARMA FORCE LABS UNIT –III


Sales Value 25,122,586 19,815,029



Power & DG Expense 242,095 346,478


Salary & Wages Expenses 451,598 402,416


Others 659,371 132,943

Total Overheads (OH) 1,594,055 937,075


INTERPRETATION:-

The sales of P.F.L.-III has increased by 27% as compared to previous year but the

overheads of P.F.L.-III have increased by 70% which resulted in reduction of net profit

by 14% as compared to last year. The consumable expenses and others have increased by

a huge percentage which has fallen the net profit by 14%.

54

MEDIFORCE HEALTHCARE PVT.LTD.


Sales Value 51,591,647 65,831,709



Power & DG Expense 976,640 1,050,362


Laboratory & Testing Expenses 177,718 184,631



Others 1,901,626 1,980,502



INTERPRETATION:-

The sales of Mediforce has declined by 22% and overheads increased by 4% as compared

to last year. When the sales are declining then overheads must also decline but in

mediforce the overheads are increasing that’s why the net profit has fallen by 4% which

is not good for future of company. The main cause of increase in overheads is that the

repairs & maintenance expenses have increased by 94% as compared to last year.

55

SIRMOUR REMEDIES PVT.LTD.


Sales Value 129,717,207 113,824,021



Power & DG Expense 1,231,285 988,693



Expense 529,649 641,909



Expenses 601,948 490,472

Others 4,740,592 2,530,172



INTERPRETATION:-

The sales of SRL has increased by 14% as compared to last year overheads by 20% but

the profit of company is same as that of last year. The power expenses, repair expenses

and other overheads have increased as compared to last year.

56

COPMED PHARMACEUTICALS PVT. LTD. UNIT –I


Sales Value 39,754,873 30,011,618



Power & DG Expense 293,152 361,819



Salary & Wages Expenses 922,836 913,489


Expenses 190,573 119,120

Others 568,778 588,060



INTERPRETATION:-

The sales of Copmed-I has increased by 32% as compared to last year and the

overheads has decreased by 4% which is a good sign for the company and I is

growing very fastly. The net profit of the company has increased by 61% as

compared to last years net profit. The power and other expenses have reduced as

compared to last year due to which the sales and profits of the company have

increased.

57

COPMED PHARMACEUTICALS PVT. LTD. UNIT –II


Sales Value 272,386,109 276,835,750



Power & DG Expense 2,991,847 1,772,737





Expenses 808,698 1,430,881

Others 3,466,715 5,036,689



INTERPRETATION:-

The sales of Copmed II has decreased by 2% in May 2015 as compared to May 2014 and

the overheads of the company are reduced by 12% but the net profit has reduced by 12%.

This indicates that with decrease in the overheads also the net profit of the company has

not increased as compared to last year.

58



Sales Value

14,647,997

28,869,579

Material Consumed

9,015,743

17,127,612

Net Contribution (NC)

5,632,254

11,741,966

Power & DG Expense

962,785

1,311,756

Consumable Expenses

194,150

209,721

Laboratory & Testing Expense

243,326

207,829

Salary & Wages Expenses

1,656,024

1,528,703

Repair & Maintenance Expenses

84,735

258,338

Others

999,572

1,074,717

Total Overheads (OH)

4,140,592

4,591,063

Profit before Tax (PBT)

1,491,662

7,150,903

INTERPRETATION:-

Sales of COPMED-III had fallen by 49% as compared to sales of last year but the

overheads has reduced only by 10% which is not reduced in that proportion in which

sales are reduced which is not a good sign for the future of the company. The net

profit had fallen by 79% as compared to last year.

59

RELAX PHARMACEUTICALS PVT. LTD. UNIT –I


Sales Value 46,458,942 110,097,670



Power & DG Expense 1,195,341 1,439,052


Laboratory & Testing Expenses 70,475 170,395



Others 1,713,721 1,419,320



INTERPRETATION:-

The sales of Relax I has decreased by 58% as compared to last year but the overheads has

only decreased by 8% which is very high as compared to fall in sales and the net profits

has reduced to the lowest of all units that is 78%. The reduction in sales had lead to less

net profits as compared to last year.

60

RELAX PHARMACEUITICALS PVT. LTD. UNIT-II.


Sales Value 224,294,325 234,223,465



Power & DG Expense 1,405,762 1,280,471



Expenses 415,149 352,498

Salary & Wages

Expenses 3,509,566 3,420,091


Expenses 478,403 712,346

Others 2,751,833 2,414,806



INTERPRETATION:-

The sales of Relax II has declined by 4% and the overheads declined by 4% as compared

to last year but the net profit has declined by 8%. The status of company has not fallen so

much but Net Profit has declined more as compared to last year.

61

FINDINGS

1. After the research on M.I.S. report of 10 companies of Pharmaceutical Industry, I

came to know that the sales of companies such as P.F.L.-I, P.F.L.-III, S.R.L.,

Copmed-I have increased as compared to their sales in the last year. But the sales

of the companies such as P.F.L.-II, Mediforce, Copmed-II, Copmed-III, Relax-I,

Relax-II have continuously decreased as compared to last year sales.

2. The overheads of such as P.F.L.-I, Copmed-I, Copmed-II, Copmed-III, Relax-I,

Relax-II have decreased as compared to last year’s expenses which is a good sign

for the company. But the overheads of companies such as P.F.L.-II, P.F.L.-III,

Mediforce, S.R.L. have increased as compared to last year’s overheads.

3. The net profits of the companies such as P.F.L.-I, Copmed-I have increased as

compared to last years net profit of these companies. But the net profit P.F.L.-II,

P.F.L.-III, Mediforce, S.R.L., Copmed-II Copmed-III, Relax-I, Relax-II have

reduced as compared to the net profits of the last year.

62

RECOMMENDATIONS

1. The companies whose sales have increased as compared to previous year’s sales

should maintain their selling level so that in coming future their sales will

increase more as compared to current year’s sales. But the companies whose sales

have declined as compared to last year’s sales they must use some new strategies

so that their can be increased in coming future and their sales must increase every

year so that companies can earn more profits.

2. The overheads of some companies have increased at a very high speed as

compared to their overheads in the last year, they must control expenses so that

they can effectively and efficiently so that they can more and more profits.

3. In some companies on which I did the research, net profit have increased as

compared to net profit of last year, these companies must maintain their sales

efficiency and control the overheads in the same way they are doing now so that

in coming year they can earn more profits. But some companies’ net profit had

decreased as compared to last year’s net profit of those companies, they should

control their overheads and change their selling techniques so that they can

increase their sales and then net profit can be increased.

63

CONCLUSION

So in the end to conclude we can say all the 10 companies are earning profits no unit is

under any loss. In the analysis of M.I.S. report of the all 10 companies there are some

units which are earning the more percentage of net profit as compared to that of the net

profit of the last year of that unit and where as in some of the units the percentage in net

profit has fallen as compared to last year’s net profit. The sales of units like Copmed-II

Pharmaceuticals, Copmed-III Pharmaceuticals, Relax-I Pharmaceuticals, Relax-II

Pharmaceuticals and Mediforce Pharmaceuticals have decreased as compared to the sales

of last year. These units must check upon their sales strategies and if there is any need of

change in the strategies then it must be changed. The above units must check the

overheads and find out ways how to reduce the overheads so that the sales and the net

profits of the units must increase.

The units like Pharma Force Labs-I, Pharma Force Labs-II, Pharma Force Labs-III, and

Copmed-I Pharmaceuticals and Sirmour Remedies Pvt. Ltd. have increased their sales

and net profit as compared to last year’s sales and net profit. They must maintain their

sales strategy and must check the overheads and if it can be decreased then it must be.

The net profits can only be increased if the sales are increased and overheads are

decreased. Employees should be trained according to the changing standards of the

organization. Company should conduct survey from time to time according to which

changes can be introduced in the organization to stay updated in the market. They should

introduce creativity into the work, so that the employees can do their work passionately.

Employees should be more involved in decision making to become more differentiated.

64

BIBLIOGRAPHY

All the information gathered to compete the project has been collected from the following

sources

1. M.I.S. Reports of 10 pharmaceutical companies

2. Company Website

3. Other Websites

www.google.com

www.wikipedia.com

4. Journals

The Management Accountant, January 2014

The Management Accountant, February 2014

The Management Accountant, June2014

5. Some links from internet

http://www.inc.com/encyclopedia/management-information-systems-mis.html

http://www.webopedia.com/TERM/M/MIS.html

http://www.google.com/

http://www.wikipedia.com/

http://www.inc.com/encyclopedia/management-information-systems-mis.html

http://www.webopedia.com/TERM/M/MIS.html