A Study on the Working Capital Management

8/2/2019 A Study on the Working Capital Management

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A STUDYON THE WORKING CAPITAL

MANAGEMENT AT ANUS LABS

Registered Office of the CompanyA-49, Madura Nagar,

Vengalrao Nagar,Hyderabad500 038Phone: +9963525176, 9701087492Fax: +91 40 23741674E mail: [email protected]: www.anulabs.com


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INDUSTRY PROFILE

After the introduction of new patent policy in 2005,Indian pharmaceutical industry rapidly growing .

Domestic pharmaceutical companies arepenetrating in to international market and whenever there are chances Indian pharmaceuticalcompanies take-covering, purchasing several othercountries companies.


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This trend is going to increasing. Major companiesincreasing their expenditure on Research &Development (R&D) .

Contract research and Parma testing activities arealso growing in Indian market. By identifying thesetrends several multinational companies areestablishing their centers in India.


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IN ANDHRA PRADESH

Andhra Pradesh stands first in Parma industry inIndia. Several Andhra Pradesh based companiesare competing with MNC's in this sector.

Our medicines have good prepotency in Americanmarket and European market also.

Our companies are producing very much qualitativemedicine to cure such above said I diseases.


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FACTORS

1. Low cost labor and Infrastructure.

2. High level of technology availability.

3. Technologically capable Human resources.

4 Liberal Govt. policies. 5. Strong market base.

6. Good relations with entire world.

7. Fast growing and adoptability.

8. Efficient target market and others.


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INVESTMENTS ON R&D IN INDIAN PHARMA

INDUSTRY:

In 1983-84 money expensed on R&D was Rs.40corers. This is further increased to Rs.370 corers in2001-02.

In 2007-08 annual allotments for R&D in IndianParma industry was Rs.1686 corers, it wasincreased to Rs.1956 corers in 2010-2011.


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COMPANY PROFILE

Logo:


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GENERAL INFORMATION

Our Company was incorporated as Anus

Laboratories Limited on February 20, 1996 and gotthe Certificate of Commencement of BusinessCertificate on March 6, 1996.


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HISTORY

Anu's Laboratories Ltd. is an ISO 9001:2000certified company, established in 1996 andengaged in manufacture of quality drugintermediates to meet the needs of international

customers.

The state-of-art R&D facilities are located at ICICIknowledge park, Hyderabad and support theprocess development, contract research and

custom synthesis programmers of the organization.


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VISION

Manufacture and supply of superior quality, cost

effective intermediates for APIs. High focus onR&D to develop complex organic molecules andextend support to synthesis of new chemicalentities.


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CORPORATE VISION

ANU'S want to be one of the leaders in thePHARMACEUTICAL industry, with all Indiapresence, through.

High quality products and brand image.

Modem, cost effective and energy efficientmanufacturing facility.

Sustained growth in profitability. High level of satisfaction to all stakeholders.


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STRENGTHSOF ANUS

Good manpower productivity and industrialrelations.

Low capital cost hence cost of production is low. Excellent maintenance practices and timely

planned replacement decreasing down time inplant.

Reliable supply of raw materials, long time contractwith suppliers for supply of raw materials.


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Well located in respect of raw materials and market.

Adequate storage at factory.

Company enjoys a good brand image and value.

A strong team of 30 chemists undertake R&D

activities following GLP. The major areas of ourR&D focus is:

To develop technologies for new products

To establish processes in laboratory for products to

be scaled u


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PRINCIPLESOF ANUS

To propagate and adhere the group values andbeliefs.

To achieve cost effective operations throughprofitable funds management and efficient financialcontrol.

To create cost and quality consciousness at alllevels.


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To increase levels of employee motivation,commitment and sense of belonging.

To strictly adhere to all statutory norms onenvironmental protection, pollution control andensure total safety to employees andneighborhood.

To use information technology as a, strategic toolfor management.


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SCOPE OF THE STUDY

The scope of my study is constitutes to be one ofthe interesting and key areas of working capitalmanagement.

The study concentrates on the financial status oraffairs of the company and the management ofworking capital in the company which involves thestudy of operating cycle and ratios of different

periods and their comparison over the last threeyears. It helps to present broader picture of thefinancial position of the company.


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OBJECTIVES OFTHE STUDY

1. To study the existing system of working capitalmanagement in ANUS LABORATORIES and to

examine the relation between various componentsof working capital.

2. To evaluate the working capital requirement ofthe company.

3. To make comparisons between the ratiosduring different periods.


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4. To offer suggestions, if any. For the betterfinancial performance of the company.

5. To analyses the efficiency in use of workingcapital

6. To the efficiency of the company in utilizing in

current assets


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NEED FOR THE STUDY

1. for the purchases of raw materials, componentsand spares

2. To pay wages and salaries

3. To incur day to day expenses and over headcosts such as fuel, power and office expenses etc..

4. To meet the setting cost as packing advertisingetc..

5. To provide credit facilities to the customers


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LIMITATIONSOFTHESTUDY

The present study is done with sincerity andearnestness it has its share of limitations. Bycalculating various ratios we can know the firm'sposition better and can compare with other firms. It

is also a major constraint.

The study is based on the present situation andonly change in the firms operations may affect the

results and finding of the study. Limited time is alimitation to get the entire information.

A Study on the Working Capital Management

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