1

FINANCIAL ANALYSIS OF AYURLAB HERBALS PVT LTD

Under The Guidance Of:Prof. (Dr.) Rajkumari Soni

Prepared By:Sampada purohit

Parul Instituite Of Eng &Technology (Mba Dept) Limda dist, vadodara

TABLE OF CONTENT

Sr No 1 2 3 4 5 6 7

Particulars Acknowledgement Introduction Short Term Finance Interpretation Conclusion Bibliography Appendixes

Page No 3 4-6 7 8-9 10 11 12-

ACKNOWLEDGEMENT

I owe our special thanks to our lecturer Prof Rajkumari Soni who gave me the opportunity to work on this project FINANCIAL ANALYSIS OF AYURLAB HERBALS PVT LTD. My Deepest Thanks to her for guiding me in this . I express my thanks to our Director Dr Bijal Zaveri for extending her support .

INTRODUCTION

AYURLAB HERBALS PVT LTD is one of the most trusted, research based pharma company. Ayurlab has developed a reputation for its strength in sales and marketing through strong brand building. Ayurlab has successfully emerged as a Pharma major in India and is currently in the process of globalization. They have world class manufacturing facilities, approved by several regulatory authorities. Since its inception in the year 1981, AYURLAB HERBALS PVT. LTD. has grown from strength to strength and has experienced progress at an accelerated pace. Under the vigilant mentorship of the Director, Dr. Milind Purohit, the company has developed into a business giant and is reputed by peers and competitors for the safe array of medicines offered by us. This has been ensured by our dedicated work towards developing our expertise in understanding and meeting the specific demands regarding Herbal Medicines in the market. INFRASTRUCTURE:- AHPL is situated in pollution free environment at Halol Pavagadh Road, 45 kms from Baroda. It is easily accessible and is situated on the highway connecting to the states of Rajasthan and Madhya Pradesh. The company boasts of a well equipped research facility together with sophisticated technology for production. World class facility devoted to the formulation of highly effective Herbal Medicines with state-of-the-art equipment is also in place at the companys research and manufacturing unit. In addition to this, we also possess our own in-house QA/QC Laboratory equipped with HPTLC, UV- Spectrophotometer, GC, AAS- ICP, etc. besides, we also avail the CAD (Computer-Aided Design)/CAM (Computer-Aided Manufacturing)Facility for developing the array of Herbal Medicines. We have the expert Team and R&D Setup for New Product Design & Development.

BENCHMARK:- Company has acquired ISO 9001- 2000 certification from BVQI & accreditation by UKAS (UK). Company has also been acquired with GMP (Good Manufacturing Practices) Certification from FDA Gujarat & Factory Plan fulfill, the requirement of Schedule T Prescribed by drug authority. MANUFACTURING CONCEPT:- Our products are manufactured under the concept of HOLISTIC (TOTALISTIC), a formulation that treats patient in totality. In short, the formulation treats somatopscychic and psychosomatic disorders. We have introduced this concept in 1985, therefore, we our known in the market as Pioneers In Holistic Ayurvedic Medicines All formulations, which we manufacture, are Holistic (Totalistic) and are manufactured by blending modern science with ancient wisdom which is reflected from our concept Where Research Blends Modern Science With Ancient Wisdom.

Vision of company:- EXCELLENCE THROUGH INNOVATION

PRODUCTS Zymodyne syrub Vasaoci cough syrub Rhemacin syrub Livplus syrub Samhita hair oil Skin caire Rhemalint Evorin capsules Vigorin capsules Smrutigold Smruti rich Hemecaire syrub Argicard syrub Entrocin Normacid Nefralka Satgol Shatoja and many more.

SHORT TERM FINANCE There are numerous occasions where businesses and corporations need financial assistance. When the need arises they have multiple avenues from which to draw funds and one of the most common ones is through short term finance solutions.In short term financing there are three types of temporary finance solutions; short term loans, trade credit, and commercial paper. Loans and trade credit can be utilized by any corporation or business but, out of the three, commercial paper is the most unique and complex type of temporary finance solutions.Short term financing is one of the most common ways for corporations and businesses to receive funding since it is a smaller amount of money, generally, that can be used on a wide variety of needs. A lot of companies use temporary financing solutions to replenish stock when the demand is high, that way they can capitalize on the current demand rather than wait for their revenue to build up so they can purchase the inventory at a later date. Long term financing can be used to pay off a substantial amount of debt, expand the company, increase facilities, or do large construction projects.Some of the examples are given as follows: Bank loans necessity of paying interest on the payment, repayment periods from 1 year upwards but generally no longer than 5 or 10 years at most Overdraft facilities the right to be able to withdraw funds you do not currently have Provides flexibility for a firm Interest only paid on the amount overdrawn Overdraft limit the maximum amount allowed to be drawn - the firm does not have to use all of this limit Trade credit Careful management of trade credit can help ease cash flow usually between 28 and 90 days to pay Factoring the sale of debt to a specialist firm who secures payment and charges a commission for the service. Leasing provides the opportunity to secure the use of capital without ownership effectively a hire agreement

Short-term sources of finance include overdrafts, short-term bank loans and trade credit. An overdraft is an agreement by a bank to allow a company to borrow up to a certain limit without the need for further discussion. The company will borrow as muchor as little as it needs up to the overdraft limit and the bank will charge daily interest at a variable rate on the debt outstanding. The bank may also require security or collateral as protection against the risk of non-payment by the company. An overdraft is a flexible source of finance in that a company only uses it when the need arises. However, an overdraft is technically repayable on demand, even though a bank is likely in practice to give warning of its intention to withdraw agreed overdraft facilities A shortterm loan is a fixed amount of debt finance borrowed by a company from a bank, with repayment to be made in the near future Trade credit is an agreement to take payment for goods and services at a later date than that on which the goods and services are supplied to the consuming company Cash Credit is also known as Working Capital .Cash Credit is a facility to withdraw the amount from the business account even though the account may not have enough credit balance.

INTERPRETATIONS FOR SHORT TERM FINANCE

Sr no 1 2 Secured loans Sr no 1 2 Total

particulars Secured loan Unsecured loan

2009 3581307 2476644

2010 5801184 578592

2011 8388054 1068068

particulars Term loan Cash credit

2009 1506249 2075058 3581307

2010 3217655 2583529 5801184

2011 5078787 3309267 8388054

Unsecured loans Sr no 1 2 3 total Particulars From directors From relatives From trade deposits/banks/others 2009 1750236 288419 437989 2476644 2010 123173 288419 167000 578592 2011 158411 288419 621238 1068068

In these case term loan and credit facility from united bank of india are secured against hyp of stock in trade , plant and machinery , mortgage of factory ,land and machinery and personal guarantee of directors

EXPLANATION AND INTERPRETATION In the year 2009 the company has taken a term loan of 1506249 and cash credit of 2075058 from United Bank of India .it has paid an interest of 518217 .it has made lot of investment in the form of purchasing fixed asset ie machinery , inventories etc. its sales during this year is 20047023 and its profit is 617202. As its shown in balance sheet that company is making payment of loan in the form of interest rs 518217 which is affordable by the firm to pay so in this year company is able pay all the debts . Here directors of the company has also made investment of rs 2476644(from the last year incomes and profits) in the form of investment ie purchase of machinery or r & d expenses as its pharma company In the year 2010 the company has taken a term loan of 3217655 and cash credit of 2583529 from united bank of india .it has paid an intrest of 798854 .it has made lot of investment in the form of purchasing fixed asset in the form of machinery , inventories. it has made lot of expenditure in this year like administrative exp manufacturing exp etc. Its sales is increasing by 29315828 as compared to last year and profit is also increasing by 1756218 rs as compared to last year here as profit is more as per the balance sheet,company is able to pay all the debts which are in the form of loan interest ie rs 798854 .After reducing interest amount from the profit firm still has 957364 which they keep as savings for future as in reserves.here directors of the company are also making investment to develop something new ie to innovate something new In the year 2011 the company has taken a term loan of 5078787 and cash credit of 3309267 from united bank of india .it has paid an intrest of 1007087 .it has made lot of investment in the form of purchasing fixed asset in the form of machinery , inventories. it has made lot of expenditure in this year like administrative exp manufacturing exp and also selling and promotional exp like introduced new product ,expenses related to r & d are more in this year etc. its sales is increasing by 35825972 as compared to last year and profit is also increasing by 5183841 rs as compared to last year here as profit is more . thus as per the balance sheet company is able to pay all the debts which are in the form of loans ie rs 1007087 .after reducing that amount from the profit firm still has 4176754 which they keep as savings for future as in reserves thus we can say that company is profitable

10

CONCLUSION

After studying the balance sheet and profit and loss statement its observes that profit is increasing in the present year than the last years. Company has also brought new machineries for formulating medicines . it has also contributed in developing some new products.the firm has implemented their vision of innovation through excellence .it has also increased its imports and export activities .whatever expenses are incurred are recovered through profits that are being earned .the company is engaged in the business of manufacturing of drugs and pharmaceuticals .there are no debts of the company and all loans are recovered at prescribed timeie time to time payment of loans is made by paying the interest. so lastly Its concluded that condition of the organization is good and it is moving on the path of developments . the company is profitable.its a proven fact that they are called as pioneers in holistic ayurvedic . they have proved that fact as recently they got 2 awards as best quality product n best enterprener award

11

BIBLOGRAPHY www.google.com www.ayurlabherbals.pvtltd.com