A Summer project On

“Analysis of Four Departments of ASFA Company”
For the partial completion of graduation degree in BBA From Shri S V Patel College of Computer Science and Business Management, Veer Narmad South Gujarat University

Submitted by: Aghera Vivek P.

Submitted to:

In charge Principal

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Chintu sir

Ms. Hetal Patel
DECLARATION

I, Mr. Vivek Aghera P., hereby declare that the project work entitled “Analysis of Four Departments of Shri Swami Atmanand Saraswati Ayurvedic Co-operative Pharmacy Ltd.” submitted to Shri S. V. Patel College of Computer Science and Business Management affiliated to Veer Narmad South Gujarat University, is a record of an original work done by me under the guidance of Chintu sir. This project work has been performed for the partial completion of graduation degree in BBA.

Sign: ______________ (Vivek Aghera)

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ACKNOWLEDGEMENT

I owe sincere thanks to a great many people who helped and supported me during the Project work. My deepest thanks to Lecturer, Chintu sir the Guide of the project for guiding and correcting various documents of mine with attention and care. She has taken pain to go through the project and make necessary correction as and when needed. I express my thanks to the Principal Ms. Hetal Patel honourable Director Shri G. K. Ruwala of, Shri S. V. Patel College of Computer Science and Business Management, for extending her support. My deep sense of gratitude to Bipin Kasvada (Assistant Production Manager), Shri Swami Atmanand Saraswati Ayurvedic Co-operative Pharmacy Ltd. for support and guidance. Thanks and appreciation to the helpful people at Shri Swami Atmanand Saraswati Ayurvedic Co-operative Pharmacy Ltd., for their support.

Sign : ______________ (Vivek Aghera)

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EXECUTIVE SUMMERY

The Asfa Pharmacy completed 60 years. During these periods Pharmacy achieve many progressive stages. This Pharmacy has a head office and other five branches. At this way its branches are spreading in different area of all Gujarat state. From the study of last 2 years Pharmacy’s financial report, we can say that rate of progress of Pharmacy is very good. Asfa is co-operative pharmacy and since its establishment it is never done loss but Asfa sale its medicines at low price so that its profit is less compare to other Pharmacies. Pharmacy’s Sales and Profit is decrease in current year to compare past years. For the duration of our training in Asfa, we found that the workers and managerial staff are good and the management of all departments is efficient. Workers are fully satisfied with their work. This Pharmacy’s aim is not only do profit but also work for employee welfare and societal welfare.

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Profile of the company &industry THE HISTORY OF AYURVEDA

Ayurveda, the science of life, prevention and longevity is the oldest and most holistic medical system available on the planet today. It was placed in written form over 5,000 years ago in India, it was said to be a world medicine dealing with both body and the spirit. Before the advent of writing, the ancient wisdom of this healing system was a part of the spiritual tradition of the Sanatana Dharma (Universal Religion), or Vedic Religion. VedaVyasa, the famous sage, shaktavesha avatar of Vishnu, put into writing the complete knowledge of Ayurveda, along with the more directly spiritual insights of self realization into a body of scriptural literature called the Vedas and the Vedic literatures. There are two main re-organizers of Ayurveda whose works are still existing in tact today - Charak and Sushrut. The third major treatise is called the Ashtanga Hridaya, which is a concise version of the works of Charak and Sushrut. Thus the three main Ayurvedic texts that are still used today are the Charak Samhita (compilation of the oldest book Atreya Samhita), Sushrut Samhita and the Ashtangha Hridaya Samhita. These books are believed to be over 1,200 years old. It is because these texts still contain the original and complete knowledge of this Ayurvedic world medicine, that Ayurveda is known today as the only complete medical system still in existence. Other forms of medicine from various cultures, although parallel are missing parts of the original information.

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INTRODUCTION OF AYURVEDA
Ayurveda is a holistic system of medicine from India that uses a constitutional model. Its aim is to provide guidance regarding food and lifestyle so that healthy people can stay healthy and folks with health challenges can improve their health. There are several aspects to Ayurveda that are quite unique:  Its recommendations will often be different for each person regarding which foods and which lifestyle they should follow in order to be completely healthy. This is due to its use of a constitutional model.  Everything in Ayurveda is validated by observation, inquiry, direct examination and knowledge derived from the ancient texts.  It understands that there are energetic forces that influence nature and human beings. These forces are called the Tridoshas.  Because Ayurveda sees a strong connection between the mind and the body, a huge amount of information is available regarding this relationship. Theory of Tridosha Ayurvedic practitioners take into consideration the body constitution of a patient before prescribing any medicine, for the medicine, which suits a vatiya (vata) constitution, will not help a patient having shleshmic (kapha) constitution. Tridosha – its types and correlation with Panchmahabhoota  VATA Organ in which situated Dominant Mahabhoota Prana Murdha (palate) jala Samana Koshtha (stomach) Agni Vyana Sarva sharer (whole body) vayu S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 7

Apana Muladhara (genitourinary tract) prithvi Udana Urh Pradesh (chest) akasha  PITTA Aalochak Netra (eye) Agni Sadhak Hridaya (heart) aakash Pachak Koshtha (stomach) prithvi Ranjak Yakrit, pleeha (liver, spleen) jala Bhrajak Tvak (skin) vayu  KAPHA Bodhak Jivha (tongue) Agni Kledak Amashaya (stomach) jala Avlambak Hridaya (heart) prithvi Tarpak Indriya (sense organs) akasha Shleshak Sandhi (joints) vayu

Principal of Ayurveda
According to ayurvedic philosophy an individual bundle of `spirit’, desirous of expressing itself, uses subjective consciousness or Satwa to manifest sense organs and a mind. Spirit and mind then project themselves into a physical body, created from the five (Pancha) great (maha) eternal elements (bhutas) – together called the Panchamahabhutas – which arise from Tamas. The sense organs then using Rajas to project from the body into the external world to experience their objects. The body becoming the mind’s vehicle, its physical instrument for sense gratification. The Bhutas combine into "Tridoshas" or bioenergetics forces that govern and determine our health or physical condition. While the three gunas (Rajas or activity, Tamas or inertia and Satwa, which balances the first two) or psychic forces determine our mental and spiritual health. Ayurveda is thus a holistic system of health care that teaches us to balance these energies in order to achieve optimum health and well being

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The Panchamahabhutas

Akash According to

Vayu Ayurveda everything

Agni in life is

Prithvi composed of

Jal the

Panchamahabhutas – Akash (Space), Vayu (Air), Jal (Water), Agni (Fire) and Prithvi (Earth). Omnipresent, they are mixed in an infinite variety of relative proportions such that each form of matter is distinctly unique. Although each element has a range of attributes, only some get evident in particular situations. Constantly changing and interacting with each other, they create a situation of dynamic flux that keeps the world going. Within a simple, single living cell for example the earth element predominates by giving structure to the cell. The water element is present in the cytoplasm or the liquid within the cell membrane. The fire element regulates the metabolic processes regulating the cell. While the air element predominates the gases therein. The space occupied by the cell denoting the last of the elements. In the case of a complex, multi-cellular organism as a human being for instance, akash corresponds to spaces within the body (mouth, nostrils, abdomen etc.); vayu denotes the movement (essentially muscular); agni controls the functioning of enzymes (intelligence, digestive system, metabolism); jal is in all body fluids (as plasma, saliva, digestive juices); and prithvi manifests itself in the solid structure of the body (bones, teeth, flesh, hair et al).

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THE AYURVEDIC MEDICINE INDUSTRY IN INDIA

Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighborhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.). The industry has been dominated by less than a dozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine. The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries. The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. These and a handful of other companies are mentioned repeatedly by various writers about the Ayurvedic business in India; a brief description is provided for them, arranged here from oldest to newest.

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STATUS OF AYURVEDA IN INDIA

The Indian government and non-government organizations have been collecting statistics on the Ayurvedic system in India and these data about the manpower and institutional aspects of Ayurveda have emerged:  Number of registered medical practitioners: 366,812  Number of dispensaries: 22,100  Number of hospitals: 2,189  Number of hospital beds: 33,145  Number of teaching institutions (undergraduate): 187  Number of upgraded postgraduate departments: 51  Number of specialties in postgraduate medical training: 16  Number of pharmacies manufacturing Ayurvedic medicines: 8,400 In India, 60% of registered physicians are involved in non-allopathic systems of medicine. In addition to the nearly 400,000 Ayurvedic practitioners, there are over 170,000 homeopathic physicians; India has about 500,000 medical doctors (similar to the number in the U.S., but serving nearly 4 times as many people). Reliance on Ayurvedic medicine is heavy in certain regions of India, such as Kerala in the Southwest. Many Ayurvedic practitioners in small villages are not registered. One of the famous clinics of India is described in Appendix 2 and a new clinic complex is serving visitors from abroad is mentioned in Appendix 3.

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HISTORY AND INTRODUCTION OF ASFA
Once in a golden morning Shri Swami Atmanand Sarswati comes in Surat and he stat to give knowledge of culture/ religion and ayurveda by his lectures at every place of Surat city. He set up Tapi Brahmcharya Ashram at the land which was donated to in at the bank of river Tapi. In Ashram many student study about Ayurveda and Sanskrit. And with passes of time he started an ayurvedic clinic and a Pharmacy for medicines needed to run clinic. And slowly with flow of time the promotion and expansion, the small Pharmacy become only one co-operative ayurvedic pharmacy of Gujarat which is established in 2nd June, 1949 with name Shri Swami Atmanand Sarswati Cooperative Pharmacy Limited which is known as its short name “Asfa”. “Asfa” (Shri Swami Atmanand Sarswati Ayurvedic Co-operative Pharmacy Limited) is established in 1948 in Surat at the bank of river Tapi. It is an only one co-operative pharmaceutical pharmacy in Gujarat. Shri Swami Atmanand Sarswati who was the man with strong mind power established the Pharmacy. Shri Swami Atmanand Sarswati was spent his whole life in survive of people and teach Ayurved to his Shishyas. He had only one goal of his whole life as follows: “I don’t desire state, I don’t desire paradise, I even don’t desire moksh, but I desire to solve the problems of people who are suffering from the dieses by way of using Ayurvedic treatment.”

Asfa has its head office at chowta pool and it has a factory at Varachha road in Surat. Asfa also expanded its production capacity and established one more factory at Navagam. Asfa has about 4000 members now but when it was started it has only 70 members to operate various activities.

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By showing the above mentioned figure we can say that Asfa is very rapidly grow and expand in whole Gujarat. It has opened branches at Valsad, Baroda, Ahemdabad, Bardoli and Bharuch etc. It has also work as a consulting in Valsad and Surat. It established a consulting clinic in Valsad where the information about various ayurvedic medicines is provided to people without taking any pay. Asfa sold its product in most of cities of Gujarat and Mumbai through its dealers. Asfa has widely distributed dealer network. Asfa produce qualitative product, by reason of that a slogan “Aushadho to Asfa nij”. Asfa get a certificate of GMP (Good Manufacturing Practice) from Gujarat state food and medicine Control Corporation. Asfa is a first Pharmacy which is gets this type of certificate. Asfa get GMP certificate in 2004 and also get ISO 9001 in 2005 and laboratory of Asfa get permission from food and medicines commissioner’s office, Gandhinagar.

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BOARD OF DERECTORS OF ASFA
1. Dr. Navinbhai B. Patel 2. Shri Ramanlal P. Patel 3. Dr. Purushotambhai P. Mistri 4. Dr. Kanubhai G. Mavani 5. Dr. Chhotubhai L. Patel 6. Dr. Tarunkumar M. Pathak 7. Dr. Abhaybhai R. Shah 8. Shri Sanmukhbhai J. Patel 9. Shri Ranchhodbhai K. Patel 10. Dr. Bankimchandra R. Thakar 11. Dr. Vasantrai M. Desai 12. Shri Jagdishbhai P. Patel 13. Shri Arvindbhai M. Patel 14. Dr. Pradipbhai J. Suryavanshi 15. Dr. Iswarbhai K. Patel President Wise President Minister Director Director Director Director Director Director Director Director Director Director Director Director

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LIST OF DEALERS
 There are 79 dealers of Asfa in whole Gujarat. Here represent only name of cities in which Asfa has dealers.  The cities are Ankleshwer(6) Ahemadabad(9) Amod(1) Mahuva(1) Bharuch(2) Bilimora(4) Bardoli(2) Chikhali(2) Godhara(2) Gandevi(1) Gandhinagar(2) Junagarh(2) Kathor(1) Kapadvanj(1) Kamrej(1) kilapadi(1) S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 15 Rajkot(3) Rajpipala(2) Surendranagar(2) Vyara(2) Vapi(1) Vadodara(4) Viramgam(1) Vidhyanagar(2)

Mumbai(3) Mandavi(1) Amran(1) Navasari(4) Porbandar(1) Surat(14)

Location of Factory and Branches
Factory of Asfa S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 16

1. Near Panini taki, Varachha road, Surat-395006 Phone no. (0261-648092, 644410) 2. 17, 18, Navagam Udhyognagar Co-operative Sangh Navagam, District: Kamrej, Surat, Phone no: (02621-252440) Branches: 1. Near Bank of Baroda, Chouta pool, Surat, Phone no: 0261-426413 2. Ayurvedic Hospital Compound, Station road, Surat. 3. Dhanasutar Ni Poll, Relief road, Ahemadabad. 4. Balavant Building, Kharivav road, Baroda.

5. 8, Navrang Shopping Center, Panch Bati, Bharuch. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 17

6. 3,Amar Chambers, Near the lal school, Valsad. 7. Hirachand Nagar, Station road, Bardoly.

ORGANIZATION STRUCTURE OF ASFA COMPANY
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BOARD OF DIRECTORS

CHAIRMAN

VICE PRESEDENT

SECRETORY

GENERAL MANAGER PRODUCTION DEPARTMENT ASSISTANT PRO. MANAGER

ADMINISTRATION DEPT.

ACCOUNTANT

SUPERVISOR

CASHIER

WORKERS

SENIOR CLERK

RAW MATERIAL DEPARTMENT

SALES DEPARTMENT

FUTURE PLAN OF ASFA

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 This company is only limited in Gujarat but now it went to expand there business and introduce its product in new state.  To increase the quality of their product  Change packaging style and use new and attractive style of packaging  Use modern technique of production and expand their capacity  Introduce cosmetics product of Asfa in the market

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Marketing Department INTRODUCTION

Market: The common usage of market means a place where goods are bought or sold. In its strict meaning market need not necessarily mean a place of exchange.

Marketing: Marketing is concerned with selling but now a day the concept has enlarged its meaning. We know that a product is provided with the aim of sale. The aim producer totally depends on marketing. Without marketing no unit can run. It covers marketing research, new product development and so many other important functions. “Marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then in turn expanding this demand.”

Marketing Environment
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Asfa is a co-operative pharmacy working with the objective of survives people. Asfa produces ayurvedic medicines. Asfa produces more than 288 types of products which other companies do not produce. Asfa sales its product in Gujarat and other nearer states and there is no other companies with so large production in Gujarat but than also Asfa have competition from the national and international companies like Zandu, Himalaya, Dabur, Baidyanath, Charak etc. and also from state level companies like Puja pharmacy, Gujarat Ayurved Vikas Mandal, Ban pharmacy etc. The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. Dabur India Ltd. (1884) is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. Zandu (1919) focuses preliminary on ayurvedic medicines but it produce chemical and cosmetic products also. Himalaya is established in 1939 in Bangalore and has business about 500 million dollar. Vicco (1958) produces topical therapies based on Ayurveda and is best known internationally for its toothpaste product. Asfa has main competition from Baidyanath and Charak. Sri Baidyanath Ayurvedic Bhawan Ltd. was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines. The company reports having over 700 Ayurvedic products, made at 10 manufacturing centers, with 1,600 employees. Charak Pharmaceuticals was founded in 1947, and currently has three distribution centers in India; it produces liquids, tablets, and veterinary supplies.

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COMPARISON OF 4PS OF VARIOUS PRODUCTS OF ASFA WITH COMPATITORS
Marketing mix is the policy adopted by the manufacturers to get success in the field of marketing. Those days, when goods were matched with the market have gone. Marketing mix is the term used to describe the combination of 4 inputs which constitute the core of company’s marketing system the product, the price structure, the promotional activities and the distribution (place) system. These are popularly known as, “4ps”. A brief description of four elements of marketing mix of Asfa is:

Product

Promotion

Marketing mix

Price

Place

 Product A product is any thing that can be offered to a market that might satisfy a want or need. Asfa produce 288 medicines for its customer. Other companies do not have so large range of product width and length. Asfa use rarely found able herbs in its medicines which make difference from competitors. Asfa produce more qualitative products than the competitors. Asfa also research and produce new medicines and patent them. Such medicines like Asfa haemetone, Reducid, Asfalax, Gasowin, Asfa-tone.

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 Price The marked or announced amount of money asked from a buyer is known as basic price of a product. Asfa use value pricing method for its products. In this method, Asfa charging fairly low price for highly qualitative product, which its competitor can not done. Asfa charged low price than its competitors because Asfa less expense in promotional activity and for distribution. Asfa charged low price because it is co-operative pharmacy and its main objective is provide medicines at fair price, not to earn profit.  Promotion Marketing communication consist of communication marketing activities through various forms of promotion that is personal selling, advertising, publicity and public relationship, sales promotion etc. together called promotion mix. Asfa does not do more expenditure for promotional activities like other companies. Asfa do zero level marketing than also Asfa easily sale its medicine and its dealer largely expand in all Gujarat.  Place Place means the decision by which company transfers their product, location, inventory handling, warehousing, storage facility, transportation etc. Asfa has a big location for plant at bank of river tapi. Asfa is located near the nation high way so it can transport and get material easily. Asfa has own retail store in various cities so it can easily provide medicines to customers than its competitors. Competitors like Pooja, Zandu, Himalaya, Dabour etc. have not so widely develop distribution network in Gujarat.

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IDUSTRIAL BUYING BEHAVIOUR
The industrial or organization buyer decision making is a follow stage process. Asfa use this process are as under.

1)

Problem Recognition: the buying process begins with recognition with
recognition of a problem or need. Something is needed that can be met by procurement of a product spare parts, material or plant and machinery or service. Externally, trade show or exhibition, Advertisement calls from sales representative may provide stimuli for need recognition. Asfa use internally and externally may provide stimuli for recognition

2) General need description and product specification: the
asfa determine the needed item general characteristics and required quantity. For standard items this is simple. For complex items the asfa will work with other engineers, user to define characteristics such as reliability, durability or price. the asfa organization now develops the item technical specifications. Often the company will assign a product value analysis (PVA) engineering team to project. PVA is the cost reduction approach by redesigning the component or by standardizing them.

3) Search supplier: the asfa tries to search out supplier. Main source of
the search vendor are trade directories internet trade advertisement visit industrial exhibition, phone to other company for recommendations. from various soures of buyer trues to identified the most appropriate from only a few prequalified vendors.

4) Proposal solicitation and selection: the asfa next invites
qualified supplier to submit proposals. If the item is complex or will require a detailed written proposal from each expensive the buyer qualified supplier. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 26

Before selecting a supplier the buying center will specified desire supplier attributes and indicate threre relative importance. To rate and identified the most attractive supplier buying centers often use a supplier evaluation model.

5) Order routine specification: after selecting supplier the asfa
negotiates the final order listing the technical specification the quantity needed the expected time of delivery return policy warranties and so on.

6) Performance review: the asfa periodically review the performance
of the supplier.

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Product Mix

Product mix means,”The set of product offered for sale by a firm or a business unit is known as a product mix”.

ASFA COMPANY PRODUCT MIX
Asfa Company produces 288 no of product. But some no of product I include in diagram.

Width of the product mix

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Depth of the product linenes Depth of the product linenes

HIGH B.P. Akika Bhasma
200,500,1000gm

LOW B.P. Sanjivani gutika

HIGH SUGAR Chandraprabhavati
Available in 100,250,500gm

Trifka tablet

Yashad Bhasma
Available in 100,300,1000gm

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There are three important aspect of product mix (1) width, (2) depth, (3) consistency. (1) Width of the product mix is concerned with the number of product lines marketed by the company. (2) The depth of the product mix depends on the average number of product items included in the product lines. (3) The consistency of the product mix indicates how far or to what extent the product lines are interconnected with each other from the view point of their final use or production requirements or channel of distribution.

Packaging & labeling
(1) Packaging – packaging is meant for the protection and maintenance of the quality of the product. It serves the purpose of container and wrapper; however, it is the powerful tool of promotion at point of purchase. Attractive packaging and labeling increases sales without spending much on advertisement Asfa company produce 288 types of product and use the 288 types of packaging. Overall 6 types of machine available at Asfa for packaging. (2) Labeling – labeling is connected with brand and packaging. Label is a strip on the container or packaging on which certain instruction. Asfa company give instruction to consumer that how use the product and price of the product, date of the manufacturing etc. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 29

Pricing strategies
The marked or announced amount of money asked from a buyer is known as basic price-value placed on a product. Price is the one element of the marketing mix that produces revenue. Prices are the easiest marketing mix element to adjust; product features, channels, and even promotion take more time. There can be competition between price-quality segments. The below diagram shows nine price-quality strategies. PRICE High Q U A L I T Y Low 7. Rip-off strategy 8. False economy strategy 9. Economy strategy Medium High 1. Premium strategy strategy Medium 2. High-value strategy strategy Low 3. Super-value strategy 6. Good-value strategy

4. Overcharging 5. Medium-value

Asfa has super-value strategy for its products. Asfa provides medicines at low price with high quality. Asfa set price for its products by taking care of the below matters.

 Asfa set price with considering its objective of provide medicines at fairly
price with good quality. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 30

 Asfa decides price after the production is over so it estimate cost of
production and other expenditure and divide it by number of products and add some more for setting price.

 Asfa Also considered the price of competitors and try to set less price than
competitors.

DISTRIBUTION NETWORK
Distribution network can be define as a set of interdependent institutions participating in the marketing activities involved in the flow of goods and services from manufacturer to customer. Asfa have well developed distribution network for marketing activities. Asfa have 78 dealers for selling its medicines. Asfa have own distribution network. Asfa sell its medicines by own stores and these stores are created in whole Gujarat state such as in Surat, Ahmedabad, Ankles war, Anand, Navsari, Vadodara and in many other cities of Gujarat. Asfa use zero level and one level channel for distribution. Asfa provide medicines to its retail store as per their requirement and that stores sales medicines direct to customers so customer get medicines in less price than competitors. Asfa have also a store at outside the pharmacy from where anyone can get medicines easily.

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SALES PROCEDURE
The steps of sales procedure of Asfa are as follows. 1. First step is to get raw-material and send in production department for process. 2. Production department prepare finished product, packed and after testing send it to dispatch department. 3. Dispatch department receives the order from Asfa’s stores. 4. According to order dispatch department send the medicines to various store by pharmacy’s own vehicle. 5. Retail stores send the material receipt note. 6. Retail stores are selling that medicines to customers and send the copy of bills of selling medicines with payment. 7. Asfa receive copy of bills and note in sales documents and collect payment.

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8. If any dealer or customer has complaint against medicines than Asfa takes their complaint and take corrective actions for that.

UNIQUE FEATURES OF ASFA’S PRODUCTS
Asfa produce 288 medicines or many other products. Asfa produce medicines in various categories like asav, aristas, syrups, churns, avlehas etc. and all of them have different unique features but Asfa products main feature is “Better Quality in Lower Price”.  We have a variety of asavs and aristas that are prepared on the time tested principle of ayurveda. Our products in asavs and aristas are of high medicinal value then that of others.  Asfas syrups are meant for overall growth, stimulated appetite, correct digestive system and cough & respiration disorders.  Asfa have prepared a variety of churns through constant research and experiments and that have been highly effective to cure digestive problems, skin digests, joint pain, cold & cough and many others.  Asfa’s avlehas are prepared from the herbs which rare to found which wasn’t made by others. These avlehas are costly because of special herbs are used for it.

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Asfa use some time the ancient recipes for prepare medicines. Asfa have also patent right of some medicines which are made by scientist of asfas laboratory.

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Activity of HR department (1) (2) (3) (4) (5) (6) (7) (8) (9) Legal compliance Benefits Union-management relations Human resource planning Employee relations Selection Training and development Appraisal Placement

(10) Motivation

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Recruitment & Selection Process RECRUITMENT PROCESS OF “ASFA”
In simple term, recruitment is understood as the process of searching for and obtaining application for jobs, from among whom the right people can be selected. According to Edurin B. Flippo, “Recruitment is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.” The recruitment process of Asfa pharmacy starts with personal planning of General Manager. When there is an any sit become vacant or a new employee is or are require, General Manager first plan how many employees are require and of what qualification. General Manager decides which type of people is requiring means which type of skills an employee have need for recruitment in pharmacy. For example, quality laboratory technician require qualification B.Sc. (Micro) and DMLT. Managers are requiring qualification of MBA. So the first step of recruitment process of Asfa pharmacy is set a standard for recruitment.

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 The second step is searching for employees. General Manager decides from where, the employees are recruit and by which source. The middle level of employees and workers are mostly recruiting from city or areas which are near to pharmacy. In source for recruiting, General Manager uses both internal and external source of recruitment. Manager use internal source such as:  Relatives of present employee  Promotion and transfer  Former employees Internal source are use when more employees are required. Asfa use external sources such as:  Advertisement in news paper  College campus recruitment  Employment exchange  The third step is screening of collected applications. Applications received in response to advertisement are screened and only eligible applicants are called for an interview. Here the recruitment process is ends and the selection process begins.

SOURCES OF RECRUITMENT
Asfa use both internal and external sources which are as follow in detail.  Internal source Asfa uses internal source when they need more employees in short period of time. Relative of present employees It is important internal source of Asfa. Asfa use this source when it requires argent employees for production at low cost. A major concern with employee S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 37

recommendation is that the referred individuals are likely to be similar in type to those who are already working for the company. Promotion and transfer This Pharmacy often uses promotion and transfer for vacant sits. This is a good source of internal recruitment. Promotions to hire positions are advantigable for pharmacy by various kinds. Another way to recruit from preset employee is transfer without promotion. Pharmacy uses it when other branch has required skill and experienced employee.

Former employee Former employees are also an internal source of applicants. Some retired employees may be willing to come back to work on part time bases or may recommend someone would be interested in working for the pharmacy.  External sources External sources far outnumber the internal methods. Specifically, sources external to a pharmacy are: Advertisement This is the common source of recruitment. All types of organizations are using it for recruitment. Asfa use most of time this source for recruitment. It gives advertisement in local and stat level news paper. Asfa take care that advertisement must be effectively drafted before publishing. Employment exchange Employment exchanges have been setup all over the country in difference to in provisions of the Employment Exchanges Act, 1959. The act requires the entire industrial establishment to notify the vacancies before they are filled. Asfa also notify its vacancies and take employees from employment exchange.

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Campus recruitment Colleges, universities and institutes are fertile ground for recruiters. Asfa also recruit it employee from colleges and universities campuses. Employee of pharmacy go to various B Pharm colleges and meets its principals and teachers take information about students from them then meet those students and give job offer to them.

SELECTION
Selection is the process by which candidates for employment are divided into class- those who will be offered employment and those who will not. Thus, the selection process is a tool in the hand of the management to differentiate the qualified and unqualified applicants by applying various techniques such as interviews, tests.

PROCESS OF SELECTION
Selection process starts when recruitment process ends. The steps of selection process are as follows. 1. The first of selection process is receipt of applications. Applications are screened then after and only those are selected whose are matched with require specifications and attributes. 2. The next step taken by pharmacy is preliminary interview. In this only general questions are asked and some information about pharmacy and of job is given to applicants.

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3. The third step is selection test. Pharmacy takes written selection test in which they ask questions on ayurvedic medicines. This test is taken only for middle level. 4. For worker and top level test is not taken. They call for interview. Interview is taken by managers and the applicants who are passed from this are selected for job. 5. Job is offered to selected applicants by giving appointment later and information of pharmacy, job and his co-workers.

HUMAN RESOURCE PLANNING PROCESS

Human resource planning as been defining as, “The process by which management determines how an organization should move from its current manpower position to its desirable manpower position. Though it management strive to have the right number and the right kind of people at the right place, at the right time, doings things which result in both the organization and the individual receiving, maximum long range profit.” In Asfa, human resource planning process is done by following steps: 1. Organizations objectives and policies Human resource plan needs to be based on organizations objectives that means objective of human resource must be derived from organizations objectives. Specific requirement in terms of number and characteristics of employee should be derived from these objectives. Asfa take care of organization objectives and policies while recruit employees. Asfa also take care of such questions like whether organization should fill vacancies by internal promotion or hiring from out side, which type of training S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 40

and development pr

ogram are needed, what policies are

needed to handle staff unit, how to understand employee job etc. 2. Human resource demand forecast Human resource forecasting is the process of estimating the future quality and quantity of people require. The basis of forecast is annual budget and long term plans of Asfa, which are translated into activity level for each function and department. Base on this information the number of hours to be worked by each skilled man power in a given period of time should be calculated. Once the hours are available the next logical step is to find out the quantity and quality of personnel. The human resource forecasting is done by various techniques like managerial judgment trend analysis, Delphi method, flow models and work study method and many others. Asfa use managerial judgment technique for its human resource forecasting because it is very simple technique. In this techniques asfa’s managers are sit together, discuss and decide the future demand for labour. 3. Human resource supply forecast Personnel demand analysis provides the manager with number and quality of employee that to be require. Next logical step for manager is to find out the number of people likely to be available form within and outside of an organization. The supply forecast covers the existing human resources, internal source of supply and external source of supply. Asfa use the analysis of present employee human resource audit summaries, each employee skill and ability for understanding capability available in organizations work force. It also forecast the internal source or supply. Managers are calculating the available supply of manpower within the organization. Asfa also calculate how many employees are available in market or outside the organization whose are take responsibilities of job.

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4. Human resource programming Once, an organizations personnel demand and supply are estimated or forecasted by the managers, then they take care of the balancing between them. The balancing is needed in order to fill the vacancies by the right employees at right time. So human resource programming has greater important in planning process. 5. Human resource plan implementation Implementation require converting human resource plan into action, such human resource plan includes recruitment, selection, placement, training, development, retraining and redevelopment, Asfa use various plans like retention plan, down sizing plan and succession plan. Asfa does not use control and evaluation for human resource planning.

Organizations objectives And polices

Human resource demand Forecast

Human resource supply Forecast

Human resource Programming S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 42

Human resource plan Implementation

(Diagram of human resource planning process)

TRAINING AND DEVELOPMENT
Training is a learning process which seeks a relatively permanent change in behavior that occurs as a result of experience. Training refers only to instruction in technical and organized operations. Training courses are typically designed for a short term, stated set purpose. In Asfa pharmacy, training is given with the objective of increase in productivity of employees, increase quality of work, enhance and update knowledge and skills of employees and many others but there is no without training program in Asfa. Asfa provides training as on job training and give training to new employee. In pharmacy, training is given to the workers which are basically at period of one month. On job training is training is training in which pharmacy and its members are help and provide guidance, if there is any difficulty in any work. Training is based on learn and teach and hence, employees will grow with experience. Development is the process of transition of an employee from a lower level of ability, skills and knowledge to that of higher level. Pharmacy also run program of development periodically. Pharmacy tries to develop new skills, techniques and personality of their employees. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 43

INDUCTION TRAINING
Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information which he needs to settle down quickly and happily and start work. In the pharmacy, induction training is given to all new joiners in Asfa. Asfa provide induction training with objective of reduce insecurity, anxiety, exploitation etc. from the mind of new joiner and he/she can work easily and with skills. Asfa have formal induction program. All details are providing by pharmacy to new employee. Asfa’s content of induction program includes the following matters:  History of Asfa  Objectives of pharmacy  Name and designation of managers  Employee’s designation and responsibility  Layout of pharmacy  Production and other processes of pharmacy  Job duties, location, tasks, objectives etc  Safety steps S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 44

 Employee benefits such as pays, holidays, welfare activities  Introduction to superiors, coworkers and other staff

TRAINING NEEDS IDENTIFICATION OF ASFA
Identification of training need is the most important step in designing a training program. This includes a thorough analysis of entire organization, all operations and all employees. This required to find out the trouble-spots so that proper training program can be designed and prescribed to those it is needed. Asfa give training to employees, when old machines are replaced by new machines. Asfa analysis the objective of pharmacy and various departments, ask questions to employees and if there is any difficulty in achieving goal of pharmacy then, Asfa give training to its employees.

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PROMOTION
Promotion refers to upward movement of an employee form current job to another which commands better prestige, higher responsibility and authority, higher challenges, better working condition, hours of work and higher rank.

Promotion policy of Asfa pharmacy
Promotion policy of Asfa is clear in whether to fill up higher positions by internal promotions the recruit people from outside. ◊ Asfa give promotion on the basis of both seniority and merits so it can take advantages of both. ◊ It is clear about policy of promotion is whether to promote employees against vacancies or non-vacancies. ◊ Asfa establish a well define promotion chart showing who can go up to what level in the pharmacy.

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◊ Asfa give promotion to any employee only one in a year. ◊ The promotion policy is prepared by discussion with managers and other staff. ◊ Promotion is not be forced on reluctant employees.

DEMOTION
Demotion implies the assignment of an employee to a job of lower rank with lower pay. It refers to downward movement of an employee in the organizational hierarchy with lower status and lower salary. Demotion policy of Asfa Asfa mostly dose not give demotion to any employee but it give demotion only 3 times in its life.  Asfa give demotion only when employee is not regular, do not work sincerely or employees behavior in organization not good.  In above cases, sometime Asfa left the employee from Pharmacy.  The policy is fair and equal for all level of pharmacy.  The circumstances under which employees can be demoted is clearly specified and made known to employees.

Transfer

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In Asfa company transfer rate is very low because of every worker are very old from U.P., M.P., Bihar etc, that’s why transfer is very few. For employee transfer rate is also very low, because of post is limited.

PERFORMANCE APPRAISAL
Performance appraisal is the process of systematic, periodic and impartial, estimating or judging the value, excellence, qualities or status and thereby evaluating the performance or qualification of a person, things or object in terms of requirement of the job for which he is employed. Asfa have no performance appraisal system but Asfa can effectively measure the performance of its workers. Asfa may use this appraised report for promotion, transfer, statutory requirement, training and development and for providing incentives. Asfa can easily measure the performance of its workers on time base method because in Asfa all worker has a card for attendance and work hours are easily calculated from that card. Asfa also the record the time of completion of job. There are many medicines are prepared by Asfa at the same time. Medicine prepared in various departments and the time of processing in each department is record by Asfa

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and from that time it can measure performance of workers of every department.

WAGES AND SALARY ADMINISTRATION
Wages and salary administration means establishment and implementation of sound policies and practices of employees compensation so that employees are attracted, maintained and public relation image is built up. It includes job evaluation, surveys of wages and salaries, development and maintenance of wage structure, wage payment incentives, wage changes, adjustments etc. Asfa gives wages and salaries according to time base wage system. Asfa gives salaries at 7th of every month. Asfa use time base system because it is old pharmacy and in that time peace rate wage system is not famous in industry. Asfa also use this method because of some advantages like easy to understand and calculate, earning of workers are regular and fixed Asfa want to maintain quality which is not maintaining peace rate etc. In Asfa, while deciding the structure of wage and salary administration, Asfa first set objective of it which are as follows:  To give fair and regular wages to employee S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 49

 To improve productivity by motivation  Control costs through sound wage and salary administration  To improve public image of company  To attract others for employment

WELFARE ACTIVITIES
Labour welfare means anything done for the comfort and improvement. Intellectual or social of the employees over and above the wage paid which is not a necessity of the industry. Employee welfare or labour welfare means,” The efforts to make life worth living for workmen.”

● Intra mural welfare activity of Asfa
 Convenience and comfort during the work  Workshop and cleanliness, lighting, elimination of dust, smoke, gases  Control of effluents  Supply of necessary beverage, pills and tables, tea, coffee  Notice boards, posters, information, slogans  Distribution of work hours and provision for rest hours, meal times and breaks S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 50

 House keeping, garden, passage, lawns, floor maintenance  Medical facilities  Compensation for accidents  Safety instruments such as guards, caps, shoes, aid equipments  Uniform and changing rooms  Urinals and latrines, wash basins, waste disposal  Provision for drinking water  Economic services such as health insurance and bonus schemes

● Extra mural welfare activity of Asfa
 Transportation  Vocational guidance and credit societies  Discount in purchase on medicines  Roads, lighting, garden  Communication facility  Security  Training and development programs Welfare activity for society  Provide employment  Provide ayurvedic medicines at fair price  Effective waste disposal system  Effective use of resources of society

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EMPLOYMENT RECORD KEEPING
Asfa pharmacy maintained its record in the form of file. There are following details, which are involved in the record keeping of each employee.  Employment history  Employee no  Name  Address  Rate of salary  Total balance saving  Attendance record and pay roll  Leaves, transfers and promotion  Shift cord  Over time cord  Training Records  Accident and sickness records S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 52

 Employment rating The objectives of employee records in Asfa are following: 1. To provide an evidence of what has taken place in the organization. 2. To supply information required for taking personnel decisions. 3. To provide a basis for the formulation, evaluation and modification of personnel and program. 4. To meet statutory obligations under various labour laws.

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PRODUCTION MANAGEMENT
Production is the process of converting the raw materials and other inputs into the products for further production or the finished goods or services so that the utility of inputs is created or enhanced and the needs of the consumers are satisfied. That is consumer goods, industrial goods, services of transport, medical treatment, education, banking, post and telegraphs, insurance etc. so in simple meaning the management of the production process is called as production management. Production management means creating and maintaining an environment in which individuals working together in groups willingly contribute their best to produce the specified goods and services by optimum utilization of raw materials and other inputs so as to timely satisfy the needs of the customers. Good Production management is essential for every organization and it is important in following ways, S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 54

 It helps to satisfy the need of customer timely.  It increases the productivity of organization.  It gives better satisfaction to the employees.  It satisfies the investors by increasing return on investment and capital appreciation.  It satisfies the community by welfare and development activities.  It satisfies the suppliers.  It benefits to whole nation.

Organization structure of production department of “ASFA”

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Board of director

Managing director

Production manager

Assistant production manager

Packing manager

Inventory control manager

Store manager

Supervisor

Workers

Workers

Workers

Workers

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PRODUCTION PLANNING
Production planning is that function of management which decides about the resources that will be required for future manufacturing operations and of allocating these resources to produce the desired output at right time, in right amount, of required quality and at minimum cost. Production planning is the planning of how much produce, Requirement of human resource and finance. It is also planning of quality standard and raw materials requirement etc. production plan is preparation of guiding plan before starting production plan involve when, what, how and why to produce goods. In Asfa, normally production plan is prepared from the sales or demand for the product of company. Starting point of production planning is dispatch department. Dispatch department supply various products of Asfa to the S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 57

dealers. When stock of medicine is remain of only three months they inform production department about requirement of medicine. From the information of dispatch department, production department decides about manufacture various products as per requirement and for this they prepare production plan. In Asfa, production planning is include planning of material requirement, requirement of manpower, capacity requirement etc.

 Material requirement planning
Material requirement planning is the first of the production planning in any company. In Asfa, production manager is check the availability of require inputs or raw material. If raw material is not in stock then give purchase order or if it is in stock, production manager do next planning of manpower.

 Manpower planning
For achieving successful result of production planning, it is advisable to make manpower planning in advance. In Asfa first they decided how much labour required producing desirable quantity. If there is shortage of manpower, they hire casual or part time labour.

 Capacity requirement planning
Capacity requirement planning is a technique to determine what personal and equipment capacities are required to meet production objectives. In Asfa, they make CRP, various operations and activities are assigning to various department. If capacity is inadequate they adjust it by some addition labour or over time.

 Maintain quality standard
In Asfa, there is separate department called quality assurance department which is check quality of raw material finished product and semi finished articles on company standards. They try to improve quality management system for better customer satisfaction and provide qualitative medicine to its customers. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 58

 Inventory control
Since entire material requirement planning is done on the basis of production plan, ultimately inventory level depends on accuracy of production plan. In this industry, they use first in first out method for inventory control.

MATERIAL REQUIREMENT PLANNING
Material requirement planning is a technique for determining the quality and timing for the acquisition of dependent demand items needed to safety master schedule requirements. In the modern world, enterprise resource planning system is being used extensively and it also takes care of whole organization instead of one unit of organization. Basically material requirement planning consists of computer programmed, which is run periodically such as weekly, monthly or quarterly to incorporate the latest schedule of production requirement. In Asfa, for preparation of material requirement planning three inputs are used which are as follows: Master production schedule

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Mps is based on forecast of various items. MRP accepts practically possible master production schedule quantities of various items as quantities of items to be manufactured. It further calculates what the requirement of various raw material and inputs is. Inventory status file All the quantities of various items in Mps is never considered for MRP process it is always considered after deducting present inventory levels of various items and pending purchase orders for this purpose, it is necessary to take data from inventory status file of various items.  Bills of material It is a database, which specifies relationship between raw material and outputs. This document is necessary to convert production quantities of finished products into requirements of various raw materials, parts, components and sub assemblies. Bills of material shows each of the materials, parts or sub assemblies by unique part number, which facilitate processing by in to price and also contents the quality of parts or material require per unit of end product. Bills of material have a series of level each of represents a stage in the manufacture of the end product. Level 1: Representing final assembly or end product. Level 2: Shows parts and sub assemblies when end product is the first desmemtated. Level 3: Result of desmentating the sub assemblies of level 1 in form of part and father sub assemblies.

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ANALYSIS OF PLANT LOCATION
It is a function of determining the production unit should be located for most economical and effective operations. The points for which the decision of plant location is taken are as follows:  New business  Expansion not possible at the same site  Economic factor (land cost of old factory becomes high so by selling it owner get large economic benefit)  Expansion opportunities needs more branches  Sudden development because of natural calamities  Special circumstances

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The main objective of Asfa is to maximize the profit through the minimize cost of production. This objective can be achieved only when the plant is at the right place where all kinds of production facilities are available. Process of selecting plant location involves following steps: 1. Decision regarding country of operation 2. Selection of region or state 3. Selection of area 4. Selection of site The owner of the Asfa Shree Swami Atmanand Sarswati was decided the India as a country, the Gujarat as a stat, Surat as a city, Varachha as a site location. There are different factor which are play important role in considering the plant location of Asfa are as follows.

 Availability of raw materials
Asfa are using number of raw materials so the idle location for Asfa is that where at least the main raw materials are easily available by which the production of Asfa run regularly and the production cost can be minimized considering all these Shree Swami Atmanand Sarswati select the place near the river Tapi at varachha road.

 Availability of labour
The availability of skilled and unskilled manpower, a prevailing wage pattern, living costs and the industrial relations situation influence the location. Manager chooses the location of Asfa at varachha road where both type of manpower available easily at lower wages.

 Transportation facilities
Adequate transportation facilities are essential for the economic operation of a production system. Many facilities or plants are located along river banks.

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Asfa is also located along river bank and near national highway so there is good transportation facilities are available. There are some other functions which also affect selection of plant location are as follows: Markets  Power  Climate and fuel  Legislation and taxation  Community facilities  Waste disposal  Site size  Land costs

PLANT LAY- OUT
Plant lay-out is configuration of departments, work station and equipments in the production system or in the conversion process. Plant lay-out is the arrangement of machinery, equipments and facilities such as receiving and shipping departments, tool rooms, maintenance rooms, inspection cabins, stores, plating shops, heat treatment chambers, trolleys, cranes and other handling equipments, employee amenities like toilets, canteen, rest and change room, parking facilities etc. so as to ensure smooth and quick movement of materials from raw material stage to finished product stage with minimum material handling, quality of operations, good communication etc. at

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the lowest possible handling cost. It includes arrangement of new plan and also revision in existing lay-out. There are various types of lay-outs are as follows:  Process lay-out.  Product lay-out.  Fix position lay-out.  Cellular manufacturing lay-out.  Combination lay-out.  Service lay-out. In Asfa, the plat lay-out is product type of plant lay-out. This company manufactures many products on continuous bases and machines are for special purpose. In this lay-out the machines or facilities are arrange sequence of an operations require by a particular product. Thus for each product there will be a separate line of machines and equipments and depending on an operation sequence. There are two type of product lay-out first line processing lay-out and second flow type of lay-out. In Asfa, there is a line processing lay-out. There is sequence of operations from raw material department to packing department.

TYPES AND CLASSIFICATION MATERIAL HANDLING
Material handling is defined as controlled movement of material, from receipt, through storage and production and up to the shipment of finished product. As definition suggests it is concerned with storage and internal movement of following type of material.  Raw material  Work-in-progress inventory  Finished product  Surplus and waste S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 64

 Capital equipments Asfa used only solid and liquid raw material. So we can classify the material handling equipments of Asfa in following basis: Classification on the basis of form of material According to this classification there can be three broad categories, solid material, liquid material and gases. Asfa use hand carts, trucks with container and manual handling system for solid material and pipelines and barrels for liquid material. Classification as per path of movement Asfa use different equipments as per path of movement. Whether movement is vertical or horizontal, whether it is a fixed path movement or variable path, the equipments are different for each purpose such as hand carts can take variable path and pipelines are for vertical movement of material. Classification on the basis of degree of automation There are three categories according to this method of classification. First, fully automatic handling equipments like robots. Second, semi automatic handling system like conveyer belt. Third, manual system like hand carts. Asfa uses only third category which is manual system.

Classification on the basis of source of power Equipments can be electrically powered, powered be any fuel and manually. Asfa uses all these type of equipments such as boiler and machines are electrically powered, truck are use diesel and hand carts are manually powered.

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INVENTORY CONTROLL SYSTEM
Inventory control is the means by which material of the correct quality and quantity is made available as and when it is required with due regard to economy in the storage costs, setup costs, manufacturing costs, purchase prices and working capital. As inventory is an essential part of any organization. Systematic management and control of inventory for all the items is a challenging job. Asfa’s main objectives of inventory control are:  To maintain investment in inventory at the lowest level 66

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To supply the products to its user as per their requirement at right time. To keep inactive, waste, scrape and obsolete items at the minimum level. To minimize holding, replacement and shortage cost of inventory at minimum level. To maximize the efficiency in production.

INVENTORY UNIT Inventory unit shows the unit, which is explained in kilo gram, liter, meter etc. ORDER CODE Order codes represent the following results if items are 0, 1, 2……9. 0 = for firm planning of main items, which are to be dispatched without any further process (final products) 1 = for manual planning, material requirement planning “off” switch for case: the item is in short but similar item with some another code is available in stock. It is planning can be stopped “off”. 2 = material requirement planning “on” switch for the item. 3 = material requirement planning “on” with instruction to check and plan for sales order requirement. 4 = reserved for EDP department to freeze the planning released and to keep the action in abeyance for one or another reason. BYPASS CODE Bypass code denotes 0 is for component and 1 is for phantom items. Bypass code is used to bypass the item for convenience. INSPECTION CODE Inspection code denotes Y/N i.e. yes or no whether the item to be inspected or not. Asfa usually check the entire item in B.M; hence, it is always “Y”. SCRAP Scrap means the waste of material arising during manufacturing process. Scrap found in Asfa Company in the last 5 year and hence, it has to purchase S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 67

material in excess. It is 10% of purchased raw-material as per last five years record. WEIGHT This is always in kg’s indicating net or gross weight that is suppose any item is packed. The gross weight of item is equal to net weight + weight of box. NET WEIGHT= GROSS WEIGHT – BOX WEIGHT. FIX LOT It refers to single character Y/N- for specifying whether the order to be released for a single lot or not. EX: Lot is 500 and order quantity is 2500. If “Y” is given MRP will print 5 lines and if “N” is given then it will print in a single line for a single order and single schedule time. LEAD TIME For making any job available the company has to release the order to vender then after the vender will take a sometime to deliver the material. Finally the material will be inspected and will be made available at work place. The total time taken is called “Lead Time”. This is always in weeks.

LOT SIZE Lot size is the quantity of order at which the total ordering cost and inventory carrying cost will be the minimum. Lot size decided on the following basis.     Requirement for a specific time span. Economic order quantity calculated based on cost of production and requirement. Minimum order quantity specified by vender. Fix packing offered by supplies etc.

The company has to define lot size in relevant unit of measuring such as box, packet, liter or tones. EX: The company need 70 units of leaning but the S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 68

supplier does not supply less than 100 units so that size will be 1 box = 100 leanings. SAFETY STOCK It is the stock or inventory maintaining to meet unforeseen situation such as variation in demand, variation in supply of quantity by supplier and variation in lead time of supply etc. so it use in emergency. ACCUMULATED LEAD TIME It is the total time taken in procuring the time after identification of its need and releasing orders. (From placing to receipt of the item)

STOCK There are several types of stock which are explained below. 1. Vender stock: vender stock has two type of stock. First is the labour and other is repairing. Some items are given to vender for repairing are known as repairing stock. 2. Store stock: The items, which have been stored by the company, are known as store stock. 3. Repairing stock: some items are given for repairing because of, it may store from long time or may be for any damage or corrosion is called repairing stock. 4. Short stock: The stock, which is in short, is called short stock and negative sign defines it. 5. Committed quantity: Committed quantity is the quantity, which is issued against work. 6. Available quantity: Available order = floor stock + store stock + repairing stock – (short stock + committed quantity). 7. Sales order quantity: the quantities, which are issued against sales order is known as sales order quantity. 8. Order quantity: the order quantity is the sum of purchase order and work order quantity. ORDER QUANTITY = PURCHASE ORDER + WORKING ORDER. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 69

9. Indent quantity: The item is in short and the work order has been made. After the purchase item has to be made and purchase that item from vender, this quantity known as indent quantity.

INVENORY VALUATION METHODS
Materials are issued to the different jobs, works, and orders from the ‘store’. The cost of finished product largely depends upon the price changed for rawmaterial issued to the jobs. Various methods are used for inventory valuation, which will solute with industry condition. The methods of inventory valuation are as follows: 1. FIFO method (first in first out) 2. LIFO method (last in first out) 3. HIFO method (highest in first out) 4. Average cost method 5. Market price method 6. Standard cost method 7. Base stock method Asfa use FIFO method for inventory valuation.

ABC ANALYSIS
Abc analysis is analysis according to the value of items. In Asfa, the inventory consists of hundreds of items and many employee are controlled them. For this company do lot of expenses. In order to affect economy in controlling such large inventory Asfa use a system known as ABC (Always Better Control) analysis. It has been found from the experience that all items included in inventory are not of equal importance. A few items in the inventory represent a large proportion of total value of inventory. Hence, more attention must be devoted to the control of such items. All the items are divided into three categories. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 70

 A – Category It includes those items which are very important and of high value but forms only a small proportion of total quantity of inventory. In Asfa, there are 30 items which are comes in category A and they represents as much as 74% of value of inventories. Strict control over receipt, storage and issue should be exercised over these items such as Abhraka bhasma shataputi, makardhwaja vati sataguna, bruhat vasant kusumakar rasa, etc. B – Category Items included in category B are not as important as those in category A, but are important enough for its proper records to be maintained. They constitute 70 items of total number of items, but represent 18% of total value of inventory of Asfa. These items are Brahmi vati, makardwaja vati, ashvgandha, mahasudershan shurna etc.  C – Category The remaining items must be placed in category C. they are not so important form the view point of maintaining control over the receipt and consumption such items constitute 65% of the total number of items but they represent 8% of total value. ABC analysis of Asfa Category A B C No. of items(in % of total Value of items ( in % of number of items) 10 25 65 total value of inventory) 74 18 8

100 92 S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT

8

71

18% 74 C

B A
74 %

10

35

100

DIFFERENT RECORDS KEPT IN STORE
Store Inward Receipt M/s. GR. / RR. No. Transporter Challan No. Sr. Description Unit Qty. as per challan Short quantity Received quantity Rejected quantity Quantity accepted Vehicle no. Date Date INDENT No.

No. of material

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Inspection report No. Bought of Purchase order no. Material receipt report no. Date Item no. Code no. particular Quantity Quantity period on order received rejecte d Remarks

MATERIAL RECEIPT PROCESS
In Asfa, there is systematic process for material receipt as follows.  The first step is purchase order given by company to suppliers.  When material comes it is not directly sent to store department but it is given fore quality checking. In Asfa, there is one laboratory to check the quality of materials.  They are checking the quality of goods and compare with quality of sample which is given by suppliers.  If there is any discrepancy, it should be immediately reported to the purchase department and that goods are sent to rejected goods department.

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 Rejected goods department take necessary action for the return of goods to suppliers.  If the goods are of quality, receiving section will prepare a “goods receive note”. Four copies of the note are prepared and three copies are sent to the store keeper along with the goods received and they attach green color “accept card” with materials.  Received material is store in various containers by store department and issue when they get order.

MATERIAL ISSUE PROCESS
In Asfa, there is a simple and short process of material issue. It is as follows.  Received material store in different container, in different quantity, by store department.  When production department need material, production manager is make a report of required material and send to store department.  Store department check the availability of material. If require material is available, they send it for quality checking to quality control department.  If quality is acceptable, they send report of it to store department.

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 After this, store manager take the material which is require and send for cleaning that material.  At the last the cleaned material is send to purchase department with entry in material outward book.

DOCUMENTS OF PURCHASING
Purchase request
Asfa pharmacy Ltd. Surat. Request for quotation Tender no. ………. Date ………. To, (Name and Address of Supplier) Sir,

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Please let us have your best offer for the supply of the following items. The items should be delivered F.O. R. Surat. The tender closes on (date) at (time) and will be opened at (time) on the following day. The first copy of tender should be dispatched to us duly filled in before the close of the tender. Serial no. Description of Items quality quantity Terms of delivery

Your faith fully, For Asfa pharmacy ltd. Purchase officer

Comparison statements
Asfa Pharmacy Surat Tender no……… Comparative statement of quotations Opened on………… quantity price Duties and taxes Terms of delivery remarks

Name of material……… Serial Name of no supplier

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Entered by……….

Checked by……….

Purchase order
Asfa Ayurvedic Co-operative Pharmacy Near Panini taki, Varachha Road, Surat-395006 Phone no: 648092, 644410 PURCHASE ORDER Purchase Order No: Supplier Quotation: TO: No. & Date: Please supply the following items on the terms and condition mentioned below. Sl No Description Material code size Qty. Price Amount Delivery date

Terms of delivery…….. For Asfa Pharmacy Purchase Manager

PURCHASE PROCESS
The process describes the sequence of steps leading to the completion of an identified specific task. Thus, purchasing process describes the sequence of steps by which purchase function is carried through from its inception to it completion. The steps of process are as follows: A) Receive requisitions The requisition includes information like how many items wanted, when they should be available, quantity in hand, who is making the request etc. In Asfa, who requires raw materials or other things, they give “purchase requisition slip” to production department. B) Review requisitions S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 77

The review of requisition is necessary. This is done to answer questions like: (1) Can a less expensive material serve purpose? (2) Can it be eliminated? (3) Can another item serve the same function? (4) Can a supplier reduce price by revise specification? C) Select suppliers Asfa is co-operative pharmacy and for purchase they invite quotation from various suppliers. After getting quotations and by comparing them Asfa select the suppliers. Asfa is not giving so much important to price but give important to quality. D) Place orders Orders are placed to selected suppliers. For order placing to selected suppliers, Asfa prepare a purchase order and send to suppliers. Purchase order includes specific quantity and quality of material at stipulated terms and material send period and placed mentioned in it.

E) Monitor orders If placed order is for long time then it is necessary to monitor those orders. Asfa also monitor these types of orders because lengthy orders are checked to determine whether anticipated deliveries are on schedule. F) Receive orders The purchase transaction is complete only after receiving the order quantity in an acceptable condition. When material is comes in Asfa, it is checked for quality in Asfa‘s laboratory. If qualities acceptable then only material is send to store department with material inward receipt.

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QUALITY CONTROL
Quality is measure of characteristic of a product or service which impart it functional or aesthetic value so as to satisfy the needs of and users for a given price paid by them. Quality control is a system of policies, procedures and guidelines which established and maintained the specifies standard of quality. It includes all aspects of quality such as research and development, design parameters, inspection, measurement and analysis of current quality levels, future trends and also competitor’s quality level, feedback from field performance of quality, choice of machines, tools, processes etc., selection and training of production and inspection staff, corrective actions and follow up etc.

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Asfa’s objective of quality control Asfa’s main objective is to produce cost effective quality ayurvedic medicine. The other objectives are as follows:  To give qualitative products to customers.  To see whether the medicines are confirms to pre-determine standers.  To reduce wastage.  To develop quality consciousness.  To assess the quality.

QUALITY CONTROL SYSTEM IN ASFA
Asfa checks the quality of all three type of product, raw-material, in process goods and finished product. Raw –material In this stage, raw materials are being checked and compare with specified quality or order placed. In quality control laboratory they check the quality of raw material, ratio of water and solid material etc. If quality of raw material is not satisfactory, goods will be rejected. If acceptable report is send to store department. In process goods S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 80

Asfa also check the quality of goods during the process of production so is there any problem in quality while processing, it can remove by taking corrective actions and make qualitative medicines for customers. These types of checking record are kept in “standard verification”. Finished product When product are finished its process then from them some samples are send to quality control department for quality checking and if quality is accepted then only finished product give to packing department for packing and labeling. The document is used to keep these types of records is called “Finished product report”. In Asfa, there is systematic and scientific approaches for quality control they follow some standardize rules and regulation for quality control. Asfa check quality of Raw material, In process goods and Finished product. For raw material they check the quality of item of various levels such as scientific name, family, description (macro and micro scope). After checking the items at micro and macro level then they check its identity. By purity ◊ Foreign matter ◊ Total ash ◊ Acid By strength ◊ Alcohols ◊ Water For In process goods and finish product they check integration of various item checks that quality of product will much with company standard.

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DOCUMENTS RELATED TO QUALITY CONTROL
1. Chemical list 2. Instrument list 3. Reference book list 4. S.O.P. (Standard Operating Process) 5. M.F.C. (Master Formula Card) 6. Calibration report 7. Test reports  Finished product report  Raw material report  Packing material report  In process report S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 82

 Re-test report  R.M. order sample record  Stability study report 8. House kipping record 9. Complain record ( outside) 10. Prepare solution record 11. In-ward, out-ward registered 12. B.M.R. issue registered 13. Suggestion record 14. Release order record 15. Out side testing record 16. Q.S.P. (Quality System Procedures) 17. Q.A.M. (Quality Manual) 18. Date stock registered.

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INTRODUCTION TO FINANCIAL MANAGEMENT

The scope of financial management, that is, the views about finance functions have undergone remarkable changes over time. Till 1950, finance function was regarded as the function only of raising finance for business, and sources of finance but now, an efficient and effective utilization of finance is also been considered as an important function of financial management. Financial management means rising of adequate funds at the minimum cost and using them effectively in business. Financial management is concerned with the financial problems of business organization. It is concerned with the problems of rising finance for establish, expand and modernize business unit,

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the problems of providing fixed and working capital, the problem of distribution of income etc.

Hoagland says, “Financial management is concerned mainly with such matters as, how a business corporation raises its finance and how it makes use of it”.

GENERAL MANAGER

ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT
ACCOUNTANT MANAGER

CASHIER

SENIOR CLERK

BANKING OPERATOR

RAW MATERIAL DEPARTMEN T

SALES DEPARTMEN T

S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT CLERKS WORKERS WORKERS WORKERS

85

REVENUE & CAPITAL BUDGETING

Asfa is a co-operative pharmacy and it is not work with object of earning profit. Asfa do not prepare revenue and capital budgets. Asfa do not prepare revenue and capital budget but if Asfa prepare it than it is useful to Asfa in following ways: Revenue budgeting is beneficial as it encourages cost consciousness, ensuring discipline in operations, improvement in handling, improvement in handling, standardization of products, better analysis of financial statements, detection of deficiency areas, elimination of waste, fixing the responsibilities

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and creation of responsibilities, better co-ordination between the departments, periodic evolutions of plans, timely improvements in profit plans, etc. Asfa do not prepare capital budgeting but it can prepare it by following the below mentioned steps:  Identifying the potential investment opportunities  Assembling of investment proposals  Decision making about selection of one proposal from various proposals  Implementation of one proposal  Performance review

COSTING METHODS

The methods to be used for the ascertainment of cost of production differ from industry to industry. It primarily depends upon the manufacturing process and also on the methods of measuring the departmental and finished products. There are various methods of costing are as follows:  Job costing  Contract costing  Batch costing S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 87

 Process costing  One operation costing  Service costing  Multiple operations costing Asfa use batch costing and multiple operation costing methods. Asfa use these methods because Asfa produce its products in batch and multiple operations are proceeding at a time in Asfa. A batch may represent a number of small orders passed through the pharmacy in batch. Each batch is treated as a unit of cost and separately costed. The cost per unit is determined by dividing the cost of the batch by number of units produced in a batch. Multiple operation method of manufacturing consists of a number of distinct operations. It refers a cost of converting the raw material into finished goods. Pharmacy also considers the rejections in each operation also for costing of products.

COSTING STRUCTURE OF ASFA
Element of Element of cost cost

Materials Materials Cost Cost

Labour cost Labour cost

Other Other expenses expenses

Direct Direct materials materials cost cost

Indirect Indirect materials materials cost cost

Direct labour Direct labour cost cost

Indirect Indirect labourcost labour cost

Direct Direct expenses expenses

Indirect Indirect expenses expenses

S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT Works Administrati Works Administrati overhead on overhead overhead on overhead

88 Sellingand Selling and distribution distribution overhead overhead

COSTING SHEET OF ASFA

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Particular Raw materials Opening stock Add: purchasing Less: closing stock Labour Direct expenses Prime cost Factory overhead Factory expenses Fuel and power Carriage inward Indirect wages Depreciation and repairs Rent and taxes Insurance stationary Works cost Office and administration overheads Office expenses Director fees Rent, rates Office salaries Sundry expenses Stationary Depreciation of office furniture

Amount

Amount

Office cost Selling and distribution expenses Travelers expenses and salaries Packing expenses Stationary Bad debt Cost of sales profit S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS Selling price MANAGEMENT

90

WORKING CAPITAL MANAGEMENT

The term working capital refers to that part of capital which is not tied up in fixed assets but is used to meet the day-to-day requirements of business, which changes from day-to-day, and which is converted into cash continuously. Working capital management includes the management of  Working capital finance  Management of receivable  Management of inventory  Management of cash

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WORKING CAPITAL FINANCE
Asfa uses the sources for working capital are as follows:  Long Term Sources of Working Capital  Equity shares  Preference shares  Long term loans  Short Term Sources of Working Capital  Short term loans  Bank overdraft  Trade credit  Commercial papers

MANAGEMENT OF RECEIVABLES Receivables are assets accounts representing amount owed to the firm as a result of sale of goods in the ordinary courses of business. Management of receivables is depending upon the credit policy of company. Asfa has the credit policy as under.  Asfa has too strict or too liberal credit policy  Asfa’s credit standards are clearly specified in policy and strict for customers  Asfa give cash discount on bulky purchase  Asfa give goods only on one month credit period. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 92

 Asfa timely collect and get its receivables

MANAGEMENT OF INVENTORY ‘Inventory control means the decision of the firm as to the extent to which inventories can be economically stored.’ Asfa’s main objectives of inventory control are:      To maintain investment in inventory at the lowest level To supply the products to its user as per their requirement at right time. To keep inactive, waste, scrape and obsolete items at the minimum level. To minimize holding, replacement and shortage cost of inventory at minimum level. To maximize the efficiency in production.

MANAGEMENT OF CASH

Cash is the medium of exchange which allows management to carry on the various activities of the business on day to day basis. Cash management involves the following four factors:  Ascertainment of the minimum cash balance and controlling the level of cash.  Controlling cash inflows.  Controlling cash outflows.  Optimum investment of surplus cash. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 93

PREPARATION & ANALYSIS OF FUND FLOW STATEMENT
A fund flow statement provides information on how, during the reporting period, decisions relating to capital structure, dividend and investment in non current assets have changed the amount invested in working capital. A fund flow statement presents sources and application of funds. Sources imply those movements in non current assets, non current liabilities and equity that increase the working capital. Applications imply those movements in non current assets, non current liabilities and equity that reduce the working capital.

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Sources and Application of Funds 1. Sources: (A) Funds from business operations (B) Sales of non current assets (C) Issue of share capital (D) Long term borrowings Total (1) 2. Applications: (A) Purchase of non current assets (B) Redemption of debentures (C) Repayment of other long term liabilities (D) Buy back of shares (E) Redemption of preference shares (F) Payment of income tax (G) Distribution of cash dividend Total (2) 3. Changes in working capital (1- 2)

ACCOUNTING POLICIES
Accounting policies are defined as, “the specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements.” Accounting policies for various matters of Asfa are as follows: Debit and Credit Debit and credit are shown as on rules of accounting of debit an asset account increase by carrying amount and debit liability account decrease and credit as vise-versa. Fixed assets S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 95

All fixed assets are shown at actual cost and depreciation is less from it as per straight line depreciation method. Inventories The stock of inventories such as finished, processed and raw material are valued by its cost or net realizable value. General accounting The accounts are prepared on historical cost basis and accounting principle of going concern concept.

DEPRICIATION
Depreciation is the process of allocating the acquisition cost of the tangible asset less salvage value, if any, in a systematic and a rational manner, over the estimated useful life of the asset. Asfa use two methods for calculate depreciation first is straight line method and second is written down value method. Depreciation on plant and machinery is provided on straight line method. Depreciation on other assets is provided on written down value method. The applicable rates are as specialized in schedule 14 of the act. Depreciation in respect to revalued assets is recouped from revaluation reserved. S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 96

Depreciation in addition from fixed assets is provided on production data bases from/up to the date of such addition/deletion as the case may be. Depreciation in addition assets due to exchange variation, forward over premium changes etc. is provided over the remaining useful life the assets.

PROFIT AND LOSS ACCOUNT

Common size profit and loss account of ASFA at end of the year 2008-2009

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Particular (Income) Year 2008 8236843.2 7 Rs. % Year 2009 9 9270729.45 4. 7 To Interest of dividend To Other income To Navagam ASFA unit profit 1 312189.1 0 124553.0 7 1. 4 3 18662.37 0. 2 2 3. 5 8 349808.40 25326.50 26183.00 % 9 5. 8 5 0. 2 7 0. 2 6 3. 6 2

Particular (Expense) Year 2008 4329229.5 5 Rs. % Year 2009 4 5054753.0 9. 2 8 1287194.8 1 1 8 86264.7 0 264289.0 4 1 0. 9 9 3. 0 4 593246.6 2 941592.0 0 6. 8 3 1 0. 0 8 3 0 890286.0 416338.1 5 675345.3 1619563.3 % 5 2. 2 6 1 6. 7 5 92099.27 0. 9 5 6. 9 8 4. 3 1 9. 2 1

To Gross profit

To Office, salary, allowance etc. A/C To Office expenses A/c To Vehicle expenses A/C To Others expenses A/C To Repairing expenses A/c To Depreciation expenses A/c

maintenance 3

4. 0

To Charity fund To Vat 2007-08 To Valsad hospital expenses C.S.T. 200708 To Net 4 6 4 0

5000.0

0. 0 6 4. 6 0 7 1. 2 2 8 0. 1 9 7. 4 9

0.00 0. 0 114366.0 0 1. 1 175934.7 8 1. 8 1 851.00 0. 0 632510.5 9 98 1 6. 5 4

406258.1

111077.3

16874.0

651221.0

Profit4 S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT transferred to B/S

BALANCE SHEET
Common size balance sheet of the ASFA at the end of year 2008-2009 Particular Fixed assets:- (A) Factory Machinery Electric equipment Electric installation purchase Furniture Library New assets Total fixed asset (A) Deposits & advances (B) Current assets:- (C) Cash & Bank balance Investment Closing stock Total current assets (C) Year 2008 6285822.74 4598896.57 1011063.89 142641.71 2447142.96 45270.70 1100352.64 15631191.21 3015094.99 % 22.23 16.26 3.58 0.50 8.65 0.16 3.89 Year 2009 6285822.74 5022897.57 1030813.89 142641.71 2455943.46 45270.70 1159707.64 % 20.52 16.40 3.37 0.47 8.02 0.15 3.79 52.69 13.46

55.27 16143097.71 10.66 4123975.71

4219683.04 26000.00 5388230.00 9633913.04

14.92 0.09 19.05

2777780.00 26000.00 7566755.00

9.07 0.09 24.70 33.85 99

34.07 10370535.00

S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT

Total assets (A+B+C)

28280199.24

30637608.42

Capital and internal liabilities :Share & funds Reserves Depreciation fund Research fund ASFA development fund Others fund (According to rules) Deposit Creditors & liabilities Departmental reserve Unpaid dividend Others paid Income-expense a/c Total liabilities 3557271.18 300989.25 10598407.95 2293795.15 712571.60 12.58 1.06 37.48 2.52 3818597.98 300989.25 11488693.95 2393639.15 712571.60 12.46 0.98 37.50 7.81 2.33

3686100.51 13.03 480000.00 1.70 5194425.26 694021.64 82740.00 28655.66 651221.04 28280199.24 18.37 2.45 0.29 0.10 2.30

3920692.51 12.80 490000.00 1.60 6022119.79 762458.44 76215.00 19120.16 632510.59 30637608.42 19.66 2.49 0.25 0.06 2.07

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RATIO ANALYSIS
A ration is only a comparison of the numerator with the denominator. The term ratio refers to the numerical or quantitative relationship between two figures. A ratio is the relationship between two figures, and obtained by dividing the former by the latter. Ratios are design to show how one number is related to another. Ratio analysis is an important and age old technique of financial analysis. The data given in the financial statement in absolute form are dump and are unable to communicate any thing. Ratios are relative form of financial data and very useful technique to check upon the efficiency of a firm. Ratio analysis is extremely helpful in providing valuable insight into a company’s financial picture. Ratio normally pinpoints a business strength and weakness.

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CURRENT RATIO

Years

Current assets (A)

Current liabilities (B) 8293637.7 1 9273552.54

Ratio (%) (A/B) 1.16 1.12

2008 2009

9633913.04 10370535.00

Current Ratio
1.17 1.16 1.15 1.14 1.13 1.12 1.11 1.1 1.16

Ratio (%)

1.12

2008 Years Series1

2009

Interpretation: S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 102

In inter firm comparison the firm with higher current ratio has better liquidity or short term solvency. Here, in ASFA current ratio is reducing every year is not good for pharmacy. In 2008 year it is some satisfactory but in 2009 years it is not good.

NET PROFIT RATIO

Years 2008 2009

Net profit 651221.04 632510.59

Sales 27923202.61 31035637.60

Ratio (%) (A/B)*100 2.33 2.04

Net Profit Ratio
2.4 2.3 Ratio (%) 2.2 2.1 2 1.9 1.8 2008 Years 2009 2.04 Series1 2.33

Interpretation: The net profit ratio measures the efficiency of management in generating additional revenue over and above the total cost of production. The net profit ratio in ASFA increases in 2008 year which shows increased efficiency of pharmacy but it decrease slight in 2009 with increased in sales and but S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 103

decreased in net profit which shows some problem in efficiency and effective management of pharmacy.

RETURN ON ASSETS RATIO

Years

Net Profit

Total Assets

Ratio (%) (A/B) 0.0230 0.0206

2008 2009

651221.04 28280199.24 632510.59 30637608.42

0.0235 0.023 0.0225 0.022 0.0215 0.021 0.0205 0.02 0.0195 0.019

0.023

Series1 0.0206

2008

2009

Interpretation: Return on assets ratio indicates the effective utilization of assets in generating revenue for firm. In ASFA, the ratio decreased every year that shows the ineffective use and inefficiency of management.

CONCLUSION:
S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS MANAGEMENT 104

After comparing all the ratio of past years with current year, we can say that pharmacy’s efficiency and the management’s effectiveness are decreased in 2009 year. ASFA pharmacy loses net profit in current which indicates ASFA pharmacy should need to increase its efficiency.

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