shaikhs report

8/7/2019 Shaikhs Report

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TAJ PHARMACEUTICAL Ltd

AProject Report

On

Taj pharamacetical Ltd.Submitted By,

Mr. Shaikh Naveed

Guided by

Mr TAMGADGE.P.H

(Lecturer,Management dept.)

Submitted to

Shri Sharda Bhavan Education, Societys

Institute of Technology & Management,

Affiliated to

Swami Ramanand Teerth Marathwada University, Nanded.


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ACKNOWLEDGEMENT

I would like to thank Mr Tambgadge.P.H. (Lecturer,Management Department) for his valuable guidance and worthy suggestions in

completing this project report.

I am grateful Mr. M.S Altamash (HOD, Management

Department) for his valuable, timely advice and guidance which has been

regular source of inspiration for me at every step while completing this project.

I also thank Mr. N.D Shinde (Lecturer, Management

Department) for his valuable instructions and support.

I extend my vote of thanks to Prof. S.B. Thorat, Director,

ITM, Nanded, under the aegis of whom I get the right direction to complete this

project.

I am thankful to all the personnel of Taj Pharmacitical Ltd.

who responded to all my questions very co-operatively and helped with direct

and indirect support to me in completing this project report.

Name: Shaikh Naveed

B.B.A. III year

I.T.M. College, Nanded.

Date:

Place: Nanded


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INDEX

Sr.No Topic Name Page No.

1 Introduction 03

2 History of the company 07

3 Business Profile 11

4 Objectives Of Study 18

5 Production Department 19

6 Human Resource Department 30

7 Marketing Department 39

8 Finance Department 45

9 Conclusion 54

10 Suggestions 55

11 Bibliography 56


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INTRODUCTION


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The company Taj Pharmaceutical Ltd. 434 Laxmi Plaza, Laxmi

Industarial Estate, New Link Raod Andheri (w) Mumbai-400 053, branch is a

well known pharmaceutical company in the world. It has been working

efficiently on the way of its success.

The company deals with the production of drugs that are used directly or

as intermediate product. The company has reached both national and

international market.

Type of Business

Manufacturer and Exporter of BULK DRUGS & Job

worker (Public Limited Company.)

Product of the company

Allopathic Products

Alfuzin

Dopin

INJECTIONS

Alphen Gemlar

Harbal & Ayurvwdic Product.

Hajma G

Kali Tulsi


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Capital structure:

Capital Structure

Number of bearer shares (nominalvalue CHF 1.-)

160,000,000

Number of non-voting equity

securities: (NES=GS)

702,562,700


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The founder of Taj pharmaceuticals, Dr. .R.K singh, is the

opioneering entetpreneur who is convencing that the future belongs to branded

pharmacutical product . He is amoung the frist to recognize that the industarial

manufacturing of standardized medicens would be a major advance in fight

against disease.

This led him to found Taj pharmacutical Ltd. In Inadia and Abord

from the very begning,

Dr.R.K.Singh attached great importance to producer information as

the link between the pharamacutical manufacturing and doctors, pharmacutical

and patients. Shortly after the foundation of the company , affiliates coere

opend in mauritius , Malashia, Dubai, Moscow, England, France, the US,Great

Britain and Russia.

Since than , Taj Pharmacutical has grown in to one of the worlds leading

healthcare companies and one of the most important India.

Explanation:


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The organizational structure of the company is function oriented. It is

divided into three levels such as

1) Top level Management

2) Middle level management

3) Lower level management

1) Top Level Management

The top level management comprises of directors i.e. Board of Directors

of the company, who take all major decision of the company regarding

investment, expansion and delegation of authorities, etc.

Chairman is on the top position of the organizational hierarchy followed

by managing director of the company, executive director and non executive

directors come under the managing director.

The major policy decisions are taken by the top management only.

1) Middle level Management


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Vice president is the bridge between the top-level management &

middle level management.

Plant manager and Administration commercial manager work under the

supervision of vice president. Activities like production, quality control and

maintenance Dept. are keenly observed and managed by the plant manager with

the help f head of each Dept. Administration and commercial manager is in

charge for human resources, marketing and finance. Top management appoints

him.

3) Lower level Management

The persons who are actually involved in production process come under

this level. It consists of shift in charge, operators, helpers, senior and junior

chemist, welders, electricians, filters, etc. they must be experienced regarding

work. Their payments are decided by Administrative & commercial manager.


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Company profile


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Introduction - Business Opportunities with TAJ PHARMACEUTICALS LTD

Contract Manufacturing

To expand you

product r line with minimum investment,TAJ PHARMACEUTICALS

LTD. provides "LOCK KEY" manufacturing services including API and dosage

form development, to allow you to focus on marketing and selling the product.

This is an efficient way to increase your product line and profit margins, while

takingadvantage of TAJ PHARMACEUTICALS' Ltd. manufacturing

experience and expertise


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Sales and Marketing

TAJ PHARMACEUTICALS LTD. has set itself apart in the marketplace

by the rapid growth of its product line, its willingness to emulate complex

drug formulations, and its core competencies in anti-infectives,

gastrointestinal, cardiovascular and analgesics arenas. TAJ

PHARMACEUTICALS

LTD. has a commercial

advantage as many of

the high-profit branded

drugs with expiring

patents over the next

few years are in the

categories where TAJ

PHARMACEUTICALSLTD. has proven its expertise.

RPI has a self-contained marketing group that works to co-market

products (the same chemical under different brands), and co-promote

products (the same brand name carried by two different companies).

RPI has marketed their services out to other companies, as they perform

all of the steps in the pharmaceutical process - from development and

manufacturing to distribution and sales.

Dosage Form Development and Manufacturing

TAJ PHARMACEUTICALS LTD.' experienceas a global manufacturer makes us aptlysuited to take on the complex process of solidor liquid dosage form development. At TAJPHARMACEUTICALS LTD., we continuallyreverse engineer to improve upon ourdevelopment process, enhancing the yield,with a focus on cost efficiencies.


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Marketing Strategies

Marketing Strategies as emphasized by the name is the department

which is focused primarily on developing and establishing different

strategies for the promotion/distribution of Branded/Generic as well as

the OTC products for RPI.

One of the key tasks for the department is to identify/look out for various

opportunities in different markets or channels of distribution and to

pursue those opportunities developing and establishing new

relationships in the market. Managed Care / Internet marketing are few

of the key areas that the department is looking to introduce into their

ever expanding products portfolio.

The department is headed by DR.C.R.BHATT and together with his

team they are

Board of Directors


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Sr. No. Directors Name Designation

1 Taj Pharmaceuticals, Dr. R.

K. Singh

Chairman / Chair Person

2 Mukund kakani Managing Director

3 Dr. M.R Bhalla Executive Director

4 Prakash Chandra Shrimal Director

5 Shantanu kumar singh Director

6 Smt. Priyanka Singh Director

Registered Office

Address :

434, Laxmi Plaza, Laxmi

Industrial Estate, New

Link Road, Andheri (W),

Mumbai- 400 053.India.

Phone : General EPA BX :

91 - (0)22 - 26374592/92

91 - (0)22 - 26374592/93


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91 - (0)22 - 30601000

Fax : 91-(0)22-26341274

E-mail :

[email protected]

[email protected]

[email protected]

Structure Organizational:
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Chairman

Managing Director

Executive Director Non-Ex. Director

Vice President

Plant Manager Administration & Comm. Manager

H.R. Head, Sales Ex. & Cashier

Production Manager Quality Control Head Maintenance Head

Shift Incharge Sr. Chemist Utility Engineer

Operators Jr. Chemist Electricins

Filters & Welders

Helpers

OBJECTIVES OF STUDY


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1.To study the quality and the price of the products.

2 To study the present position of Taj Pharmacitical Ltd in

the market.

3. To study the HR functions of the organizations.

4. To study the marketing strategies of the company


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PRODUCTION

DEPARTMENT

Production


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The essential feature of Production Department is to bring together

people, machines and materials to provide goods and thereby satisfying the

wants of people.

Products

The company currently deals with the production of

1] Alfuzin

2] Dopin(intermediate)

3] Pyrazinamide (bulk drug)

The 1st drug was produced in 1987 and that was Alfuzin. It forms

isoxamine as an intermediate while production ofAlfuzin is carried out .


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In 1999, the company has started the production of another bulk drug i.e.

pyrazinamide

Raw Materials

The raw materials used in the production are as

1] For Sulphamethoxazole

1. Sodium metal,

2. Costic soda,

3. Methynal,

4. Pyridine acetone,

5. Acetal..hloride,

6. Carbon, etc.

2] For Pyrazinamide

1. Propylene glycol,

2. Ethylene dimide,

3. Zinc catalyst,

4. Costic soda,

5. Carbon, etc.

RAW MATERIAL CONTRACT MANUFACTURING


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1] Product for A D Lactone

1] A D pure

2] Methanol

3] Trimethoxied ortho formaamide acitron trimothyle selphotronic

1. B Tac, utromine T

2. Dicthyl minotyle

3. Isoproeri

Dr. Reddy

1) Enrofloxacin (Veterinary Drug)

1] Nethyle papyrazine

2] Q acid

3] Butanol

4] Acitic acid

5] Ammonia bydrox carbon

Raw Material for Ciproflomicin


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2) Ciprofloxacin Hydrochloride (Anti Biotic Drug)

1] Q acid

2] Butanol acitic acid

3] Methanol

4] Carbon

5] Pypranic unbydrored

Production Process


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1] ForAlfuzin

Sodium metal and costic soda is reacted with methanol. It gives sodium

methoxide. It is transferred with reactor touline pyridence. Then it produces an

intermediate i.e ISOXAMINE, Acetone, Acetal, Sulphonal Chloride,

Hydroxamine, sulphite are added in it. For further purification, carbon is added.

After the carbon treatmen cake is formed i.e Sulpha Crude. Then it is

transferred to centrifuges, which is connected to motor to remove impurities

from it.

A solid cake is formed that is collected in bags and transferred to drier

section. It is dried with the help of food belt drier. At the end it is tasted by the

quality control department. By assurance of the head of the department it is sent

for packaging.

2] ForDopin

The same production process is adopted for producing Dopin with its

raw materials. The produced Dopin is also transferred for packaging.

The Company packs the drugs in 15-25kg export worthy fire drums in 2

poly bags that are ready for sale and export.

The packaging style has selected according to the liquidity of product ie.

The nature of the drug and safety measures in transportation activities. The

production takes place in batches with the maximum 500kg batch size.


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Storage Department:


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The main concern of this dept. is to store raw material and finished

product. The company follows The Standard Operation Procedure for

undertaking the various activities of store departments.

In coordination with the Quality Assurance and Quality Control Dept.,

the work is done according to GMP (Good Manufacturing Practice) norms. The

company undertakes the following systematic procedure for quality and

continuous production.

Order for Raw Material


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Arrival of raw material

Material receipt

Inspection by Quality Assurance Dept.

Fail Pass

Return to Supplier

Unloading of material

Maintenance

Use as per requirement of batch

Processing

Reprocessing waste Output

Quality control department

Fail Pass

Preparation of batch sheet

Store

Dispatch

Explanation


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Each order is placed for raw materials of any kind (liquid, solid, etc) have to go

through this procedure when the order arrives at factory gate, material receipts,

packed materials and other documents accompanying with it , are verified. Raw

material arrival sheet is given to Quality Assurance Department for sampling

the material.

Rejection of material

In case of damage leakage and inferior quality of the raw material the

company returns the material to the supplier. If it is miner then in that case the

supplier is informed regarding that / as the material is granted by the Quality

Assurance Department, unloading of material takes place.

Solid raw materials are transferred manually.

Liquid raw material is pumped from the main storage tanks to plant tanks

as per requirement.

Cylinders of gaseous raw materials will be transformed from storage area

to plant manifold area.

Finished goods and packaging materials will be stored in a separate room

and dispensed from there.

Since the production is done in batches the raw materials are entered as

per the batch requirement and attention is provided on its maintenance and

safety.


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The final output is checked by Quality Control Department and sent for

packaging and labeling for each batch batch Sheet is prepared by the store

department that gives the information regarding label, container, weight , and

size of batch after loading , it is dispatched.

Measures to keep store up to date

1) Keeps records of all arrival and dispatch sheets, receipts of raw

material and processed output product.

2) Cleaning as on scheduled day and time-to-time.

3) Availability of proper ventilation, sunshine, be humidity etc as per

materials needs.

4) Proper care is taken to avoid leakages, damages in the store.


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Human Resource

Department


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In every organization, Human Resources play very significant role so; it

is very essential to get work done to their full potential and give them proper

returns of their efforts.

Employees people and evaluate their work but also motivate them to

acquire more success. The activities to make it happen are as employing people

developing their sources , utilizing, maintaining and compensating their

services in tune with the job and organizational requirements with a view to

contribute to the goal of the organization , individual and society . The actual

role players of the industry who transforms all plans into reality are the Human

Resources of the company.

The company has to decide how many and what kind of people are

required in the company. In Godavari Drugs, the total man power working is 72

out of which 23 employees works in staff and remaining 49 related to

production utilize department.


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A) Recruitment

Under the human resource policy of the company, the different sources of the

recruitment are as.

Contact with the local university & colleges

Institutional apprentice or management trainee

Vacancy declaration in local newspapers

Employees inference

Internet based recruitment


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Criteria of selection

1] For Employees:

Minimum qualification as per job requirement as it is a drug industry, the

preference in the selection will be given to the one who is M.Sc. Chemist for

posts like supervisor and operator.

Physically and mentally strong to handle the workload and stress

situations expert in his field.

2] For workers:

Healthy and strong physical so that he will able to shift heavy loads.

He must have work experience.

He must be efficient in his work.


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Selection Procedure:

Applications of candidates are received with attached bio-data, mark

sheet of PG. Medical certificate and other certificates relating with the previous

job.

Prospective candidates are selected for interview.

Interview takes place for taking overall idea of his personality.

Tests are taken for checking his subject knowledge.

If candidate is passed through above tests then he must satisfy medical

check up.

His records in previous company are checked to verify that there is no

balance of loan and what is the reason to leave it.

If the candidate successfully overcomes all above exams then he is

declared as selected for job.

The candidate is purely selected on his merits.

B] Training:

After the candidate is selected, he will be given the training for six

months so as to get adjust in the new work environment, to learn and progress

in his work. If he is satisfies all his job requirements then he may be appraised

in form of authority or in monetary terms.


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In case the employee is not able to adjust himself to learn in the given

time, the period of training is extended for some time and still if he does not

show any improvement, he is fired from the post.

The senior employees who have been working in the company provide

training and coaching to the trainee. The workers are sent to attend the

workshops held at different places.

1] PromotionThe company gives promotion to the employees on their merits only, this

enables the company to possess efficient and effective work force.

2] Compensation

The workers working under the company are 0paid under minimum

wages Act. The extra wages are provided for bonus is given at the time of

festival like Diwali

The employees salary is given as per standard rate for the job plus T.A,

D.A, H.R.A, and other allowance, payment varies as per change in job and

authorities, increased as per direction of management. Bonus is also provided

for efficiency in work.


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3] Safety Measures

As it is drug industry the company has to take care not only of the

materials and Equipments but also of the workers who are handling it. They are

provided whit Coffles, Cof, coat, hose cap, gloves, dress two pairs, shoes and

mask, first-aid box.

Moreover, the protection measures are also taken.

4] Security

Every person has to enter his name, address contacts and reason for

coming to industry in a register. The watchman keeps close eye on each person

who is coming or going out and its records so that any unknown person will not

get the entry without permission or reference by phone.

5] Leave

There are two kinds of leave allowed they are as.

1) Casual leave

2) Paid leave

From 1st Jan to 31st Dec, There are 11 leaves are allowed as casual

leave, they are related with illness, or any reason there will be no cut of

payment for it.


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If the employee is not able to come for continuously 15-20 days, he

has to inform it to his higher authority 15 days in advance and amount will cut

off from the pay of the employee.

6] Termination

The HR head and the concerned departmental head can recommended

for termination any of the employee or worker in the following cases. The

company reserves the right to terminate the employment contract without

notice. In any of the following circumstances if a person.

Is guilty for inconsistent with due and faithfully discharged duties.

Is guilty of any thing which may cause a big loss or damage or defame

for the company.

Is consistently absent for more than a week without prior leave and

without any reasonable excuse, without informing or attempting to

inform his superior.

In all above cases, the company processes the right to terminate the

person without any notice.

7] Resignation

It is submitted to immediate superior.

It is send to head of H R dept for acceptance.

If it is accepted then salaries will be paid along with the legal dues.


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8] Facilities

. Canteen

Celebrates Ganesh Mahostav and Durga pooja.

A board is maintained best wishes are displayed on it for birthdays as

well as of their maritual birth days of employees.

Medical check up is held on every last week of month for the workers

and employees.


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MARKETINGDEPARTMENT


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Marketing is studied under the two approaches such as:

Product oriented approaches, which comprises with buying and selling

activities only.

The second known as customer or modern approach according to which

marketing is concerned with delivery of standard of living to the end users. It is

the total system of interacting business activities are designed to plan, price,

promote and distribute want satisfying product and service to present as well as

the future potential customer.

The produced drugs come under the Industrial goods category,

industrial goods, which are designed to be sold primarily for using in

production or another usable final product exactly apposite to the customer

goods, which are designed to b used by the ultimate consumers in such a

form that they can b used without any commercial processing.

Product Mix

Product mix is the list of the entire product offered for sale by a

company. It is the element of product policy, in product policy the major

decisions are taken by management is considered towards the concept of

product mix.

In this company the product mix has three dimensions such as follows:


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1) Production and Packaging

Production is made as per purchase order, in different batches. Pricing

policy is competition oriented while packaging, safety is the main concern to

provide safety transportation and easy distribution to the customers. The drugs

manufactured are packed in 15 25 kg. export worthy fire drums.

2) Marketing strategy

The company adopts two strategies for marketing, they are as follows

i. Direct marketing (direct orders)

ii. Indirect marketing (through merchant, commission agents, brokers &

traders)

Direct marketing users uses the direct marketing channels to reach and deliver

the orders to customer without using marketing middlemen. It needs measurable

response and the most important customer order.

It also needs to build a long term relationship with the customer [ here the

customer are the other industrial units].

In direct marketing the company gives 2% to 5% commission to the

middlemen as commission agent, broker, trader and merchant. They enable the

company to provide the supply over the vast area.

Transportation media adopted for export is either through sea or air.


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Advertisement

Salient Features of Products

IS 2925 certified & DGMS approved

Highly secured products

Fabulous designs

Durable, reliable and highly resistant solutions

Wide range of products to suit various requirements

HDPE made products

Unique Cross Ribs for excellent impact protection

Textile head suspension is attached with chinstrap and the head

suspension is available in 540-590 mm. size.


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Unmatched Quality

Superior quality is the hallmark at Guards. Our world class quality

management system comprises of several inspection procedures that almost

minimize the possibility of quality degradation. We employ ultra modern

techniques in order to deliver desirable quality to our valued clients. Every

product is manufactured by employing the finest quality of raw material under

the strict supervision of diligent quality inspectors. Our aim is to manufacture

and export top quality safety and comfort at affordable prices. We have a

separate unit for quality testing of every item.

Exclusive Designs

We are well supported by a team of highly creative designers who are

capable of designing unmatched products that not only look better but also

provide full proof security to the worker. Every product is the result of

extensive hours of our professionals' labour. Our research personnel regularly

study the emerging requirements of the industry in order to deliver perfect

solutions as per exact requirement.


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Infrastructure

We boast of an outstanding infrastructural ability that provides us the

capability to realize all our safety related business objectives. Our facility is

equipped with ultra modern machineries and highly qualified workforce,

delivering the perfect equation of manufacturing world class products. We also

have a spacious warehouse and wide distribution network to ensure timely

delivery of the products


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FINANCEDEPARTMENT


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Every firms success and at least its survival depend upon how efficiently

it is able to generate funds as and when needed finance holds the key to all the

activities. The path of success of an enterprise is greased with money. However

it would not be proper to pass the entire credit of the success of the business

enterprise to finance. It depend upon how productively money is utilized the

organization. Finance guides and regulates investment decision and

expenditure.

Finance is defined as:

It is a task of providing funds required by an enterprise on the terms

most favorable to it, in the light of the objectives of the company.

- Hunt Williams


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CAPITAL

Taj Pharmaceuticals For Investors

Share Information:

Soon available..

Latest Investor Updates:

24 Marck 2006

we have launched our four new

products ElevenSeas, Tocoder,

Divanerve, Gynasafe for muf &marketing in India & Abroad

6 April 2006

MabThera significantly

improves symptoms in patientswith rheumatoid arthritis who

inadequately responded to anti-

TNF therapies

5 April 2006

Chugai: A Revision of FinancialOutlook for Fiscal Year 2005

(January 1 ~ December, 2005)

Information and Events:

19 April 2006

First Quarter Sales

8 March 2006

Taj Pharmaceuticals IFRSWorkshop

2/3 February 2006

Taj Pharmaceuticals Full YearResults and Report for 2004

5 April 2006

Chugai: A Revision of Financial

Outlook for Fiscal Year 2005 (January

1 ~ December, 2005)


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To obtain information about Taj pharmaceuticals Securities, latest stockquote and performance charts, to view historic share price and financialinformation, ordividend history, please select the appropriate link.

Taj pharmaceuticals Securities

Symbols

Security Stock

exchange

Reuters Bloomberg Swiss

Exchange

TAJ NES SWX

London

SEAQ

TPLZg ROG ROG

Taj bearer

share

SWX TPLZ RO RO

Taj ADR New York RHHBY RHHBY -

TradingTaj pharmaceuticals's non-voting equity securities (NESs) and Tajpharmaceuticals bearer shares are quoted on the electronic SwissExchange. Taj pharmaceuticals NESs are also traded over the counter(OTC) on the London Stock Exchange Limited (SEAQ International) andon other European exchanges. In July 1992, Taj pharmaceuticalsestablished an American Depositary Receipt (ADR) facility for Taj

pharmaceuticals NESs in the United States. Two ADRs represent oneNES.
http://www.tajpharmaceuticals.com/Investors.htmhttp://www.tajpharmaceuticals.com/Investors.htmhttp://www.tajpharmaceuticals.com/Taj%20Pharmaceuticals_Company_%20Executive%20Committee.htmhttp://www.tajpharmaceuticals.com/Taj%20Pharmaceuticals_Company_%20Executive%20Committee.htmhttp://www.tajpharmaceuticals.com/Taj%20Pharmaceuticals_%20Research%20&%20Development.htmhttp://www.tajpharmaceuticals.com/Investors.htmhttp://www.tajpharmaceuticals.com/Investors.htmhttp://www.tajpharmaceuticals.com/Taj%20Pharmaceuticals_Company_%20Executive%20Committee.htmhttp://www.tajpharmaceuticals.com/Taj%20Pharmaceuticals_%20Research%20&%20Development.htm


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Capital Structure

Number of bearer shares (nominal

value CHF 1.-)

160,000,000

Number of non-voting equity securities:

(NES=GS)

702,562,700

The Company has a share capital of CHF 160,000,000, divided into

160,000,000 fully paid bearer shares with a nominal value of 1 Swiss franc

each. There are no limitations on the transfer of these shares and no shares with

maximum voting rights. Upon deposit, shares can be voted without any

restrictions.

In addition, 702,562,700 non-voting equity securities have been issued in bearer

form. They are not shares, have no nominal value and can not be issued againstany capital contribution. They do not form part of the share capital and

therefore confer no voting rights. However, each non-voting equity security

confers the same rights as a share to participate in available earnings and in any

liquidation pTPLeeds following repayment of the share capital. Taj

pharmaceutical's non-voting equity securities and the provisions securing the

claims and rights pertaining thereto are described in 4 of the Articles of

Incorporation of Taj pharmaceuticals Holding Ltd.


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SIGNIFICANT ACCOUNTING POLICIES

The company adopts the following polices for their financial concerns.

Accounting Concepts

The company follows mercantile system of Accounting and recognizes

income and Expenditure on accrual basis. Accounting Policies not otherwise

referred are consistent with generally accepted principles.

Revenue Recognition

a) Revenue from sale of goods is recognized when significant risks and

rewards in respect of ownership are transferred to the customer.

b) Interest income is accounted as per contractual terms entered into

with the parties concerned.

Turnover

Turnover comprises sale of goods including sales tax and export

Benefits such as Excise duty rebate and credits in Duty entitlement

Pass Book (DEPB) and Advance Licence.

Fixed Assets

Fixed Assets are stated at cost less depreciation.


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Depreciation

Depreciation on Plant & Machinery, Factory Building, Electrical Installation

and Laboratory Equipments is provided on straight line method while in case of

Furniture and Fixtures, Vehicles, Office Equipment and Computers on written

down value method as per the rates prescribed in schedule XIV of the

Companies Act, 1956 as amended and rules framed thereunder.

INVENTORIES

Inventories are valued at the Lower of cost and Net realizable value. Obsolete,

slow moving and defective inventories are identified at the time of Physical

verification and wherever necessary provision is made for such. The cost in

respect of following items is computed as under:-

(a) In case of finished goods at raw material cost plus conversion cost

and other overheads incurred to bring the inventory to their present condition

and location.

(b) In case of raw materials, stores, spare parts, material-in-transit etc.

at cost(c) In case of Stock-in-process at raw material cost plus conversion cost

depending on the stage of completion. Cost formula used is on FIFO basis.


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RESEARCH AND DEVELOPMENT

(i) Equipment purchased for research and development is capitalized when

commissioned and included in the gross block of fixed assets

(ii) Research and Development expenditure incurred are charged to

Profit & Loss account of the year under relevant head of accounts.

(iii) Research and Development expenditure incurred on identified

products on or before 31st March 2003, the benefit of which is expected to

accrue to the company over period of time will be written off in five years from

the production/launch of the product.

GOVERNMENT GRANTS:

Grants in the form of capital/investment subsidy are treated as capitalreserve.

FOREIGN EXCHANGE TRANSACTIONS:

Revenue from overseas clients and collections are recorded at the

exchange rate as of the date of the respective transactions. Expenditure in

foreign currency is accounted at the exchange rate prevalent when such

expenditure is incurred. Monetary Assets and Liabilities denominated in foreign

currency as at the Balance Sheet date not covered by foreign exchange contracts

are translated at year end rates. The resultant exchange differences (except


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those related to acquisition of fixed assets) are recognized in the Profit & Loss

account.

RETIREMENT BENEFITS:

Accrued liability for retirement benefits (Gratuity) is calculated based

on the assumption that these benefits are payable to all employees at the end of

the accounting year.

Contributions to defined schemes such as Provident Fund and

Employees State Insurance Scheme are accounted for on accrual basis.

Provision for Bonus is made on accrual basis.

TAXES ON INCOME

Tax on Income for the current year is determined on the basis of taxable

income and tax credits computed in accordance with the provisions of the

Income Tax Act 1961.

Deferred tax assets and liabilities are accounted for based on the

difference between taxable income and accounting income that originate in one

period and reasonably expected to revise in the subsequent periods.

Deferred tax assets arising from timing differences are recognised to

the extent there is reasonable certainty that these would be realized in future.


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CONCLUSIONS:

Indian major company which came up with the idea of antibacterial concept in

various family and health care products. mostly whatever ingredients it uses in

its product are extracted from nature as it has very less synthetic chemical

constituents used in its product and so it does not has any threat of side effect.

As it has its product in major areas viz. family, health care and in food division

it can easily has larger share of market.

Quality is the dominating aspect which influences consumer to purchase

medical product, but prompt availability of other brands and aggressive

promotional activities by others influences the consumer towards them and also

leads to increase sales.

People are mostly satisfied with the overall quality , but for the existence in the

local market must use aggressive selling techniques.


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SUGGESTIONS

Company should expand their products in the international market.

The price of products should be similar or less as compare to the

competitors product.

Company have the good image in the international market so company

should allocate their franchise in different countries.

Company should adopt easy channel of distribution to distribute their

product in the market .


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Bibliography

1. GLOBAL MARKETING MANAGEMENT

S.A. SHERLEKAR

2. MARKETING MANAGEME

PHILIP KOTLER & GARRY ARMSTRONG

3. ECONOMICS TIMES

4. TRADE JOURNALS

5. WEB SITE: WWW.TAJ PHARMACUTIAL LTD. COM
http://www.taj/http://www.taj/

shaikhs report

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