INDIRA GANDHI NATIONAL OPEN UNIVERISTY

SCHOOL OF MANAGEMENT STUDIES

PROGRAMME CODE : MP MBA

COURSE CODE : MS 100

A
PROJECT SYNOPSIS
ON

AT

STUDY CENTRE : 0902 (VADODARA)

REGIONAL CENTRE : 09-(GUJARAT REGION)

PROJECT GUIDE : SUBMITTED BY :

 SYNOPSYS CONTENTS

SR.NO. PARTICULARS PAGE NO.

1. INTRODUCTION OF THE TOPIC 3
2. INTRODUCTION OF THE 8

ORGANIZATION
3. RATIONAL OF STUDY 9
4. OJECTIVES OF THE STUDY 11
5. RESEARCH METHODOLOGY USED 12
6. LIMITATIONS OF TOPIC 13
7. OUTCOME FROM THE STUDY 14

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 1. INTRODUCTION OF THE ORGANIZATION

.: ALEMBIC LIMITED - 100 YEARS OF EXCELLENCE IN HEALTHCARE!

ISO-9002 and ISO-14001 certified Asia's most respected integrated pharmaceutical
company with manufacturing practices and facilities that conform to WHO-GMP
guidelines, Alembic is in the business of improving the quality of life and healthcare in
over 75 countries around the world.

Alembic at a Glance :

Everything I do at Alembic revolves around extending and improving the quality of life
with products that span the entire lifecycle. As an integrated pharmaceutical company, it
share collaborative & symbiotic relationships with preferred business partners, all of them
reflect their business ethics, trust & transparency and quality standards.

Mission of the Organization :

The mission of the organization is to give access to the best healthcare products at
affordable price to everyone, anywhere in the world.

Commitment to Health :

Alembic started in 1907 & now it is Asia's most respected integrated pharmaceutical
company with manufacturing facilities in Baroda and Baddi, India with R&D facilities
spearheading landmark research in the areas of Chemistry, Microbiology, Pharmaceutical
Technology. and Bio-Equivalence.

Alembic is a certified ISO-9002 ,ISO-14001 and ISO 27001 company with manufacturing
practices and facilities that conform to WHO-GMP guidelines ensuing that every Alembic
product meets the most stringent quality standards. No wonder, then, Alembic can be
found improving the quality of life in over 75 countries around the world.

Commitment to Life :

The organization should committed to make the world a better place to live in and it strive
to achieve this goal through their educational, environmental and personal healthcare
programs.

Environment :

The organization consider the protection of the environment as their direct responsibility
and all our processes and technologies incorporate this feature. A clean and a green
environment is an absolute necessity and they ensure this by using state-of-the-art Effluent
Treatment Plant for all the waste generated.

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Their sprawling green campus houses a large percentage of their employees. They actively
support and fund various environmental organizations in their crusade to make this place a
better world to live in.

Healthcare :

The Organization should promoted the Bhailal Amin Trust that manages one of the most
successful hospitals in the state of Gujarat, India. The high level of services and
procedures available here remain unparalleled anywhere in the state.

.: MILESTONES

Alembic has been building high standards in the Indian pharmaceutical industry for almost
a hundred years.

From : 1990 TO 2004 :-

Received First Chemexcil Award Roxythromycin Bulk Production

Commercialized.

Azithromycin Bulk Production Commercialized

Clarithromycin Bulk Production Commercialized Launched Roxid Liquid- The

first of its kind in the world 1997 Set up a new Facility for Synthetic Organic
API's. Received award for "Excellence in Environment Preservation and Pollution
Control" by the Federation of Gujarat Industries (FGI)

Achieved ISO 14001 Certification for its Manufacturing Facility in Baroda. Shri
Suresh Prabhu - Union Minister For chemicals and Fertilizers, GOI inaugurates the
Cephalsoporin-C Facility by. Launched the Generic Division.

Launched Azithral Liquid- The first of its kind in the world

Achieved ISO 9002 Certification for its Manufacturing Facility in Baroda.

Achieved ISO 14001 Certification for its Manufacturing Facility in Baroda.

Shri Suresh Prabhu - Union Minister For chemicals and Fertilizers, GOI
inaugurates the Cephalsoporin-C Facility by. Launched the Generic Division.

CO'S ( Certificate of Suitablity ) issued by EDQM for Roxithromycin.

Launched Cephalsoporin Bulk Active.

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From : 1990 TO 2000 :

Received First Chemexcil Award Roxythromycin Bulk Production

Commercialized

Achieved ISO 9002 Certification for its Manufacturing Facility in Baroda.

Achieved ISO 14001 Certification for its Manufacturing Facility in Baroda.

From : 1980 TO 1990 :

Started the large-scale production of 6-APA using immobilized enzymes.

Entry made into Specialty Chemicals

From : 1970 TO 1980 :

Erythromycin was manufactured for the first time using expertise from Eli Lilli-
USA.

Launched a brand of Erythromycin- "Althrocin" A landmark accomplishment of

manufacturing Kanamycin by fermentation. Alembic enjoys the status of being the
only basic manufacturer of this product in India, under the guidance of MEIJI
SEIJA, Japan.

Started the manufacturing of Erythromycin and its Derivatives. 1975 Our R&D
facilities were approved by DSIR, GOI.

From : 1907 TO 1960 :

Alembic Chemical Works Co. Ltd. is started, primarily engaged in the manufacture
of Tinctures and Alcohol at Baroda.

French Distillery plant for pharmaceutical purposes installed at Baroda.

Started manufacturing Alembics famous Cough syrup, Vitamins, Tonics and

Sulphur Drugs.

Alembic Glass 1952 Research and Development activity begins

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- Chairman & Managing Director

Mr. Chirayu R. Amin acquired his M.B.A. degree from U.S.A. He has been working
with the company since 1983. Under his able leadership as CMD, the Company has
achieved and has been able to maintain its growth in sales despite very keen competition
in the pharmaceutical industry.

He is President of BCA, Vadodara and also the Vice President of BCCI. He is a

Committee Member of the Federation of Gujarat Industries, Vadodara, Federation of
Indian Chambers of Commerce and Industry (FICCI), New Delhi.

- Director & President International Business

Mr. Pranav Amin has done his Bachelors of Science in Economics/Industrial

Management from the Carnegie Mellon University in Pittsburgh, USA. He pursued his
M.B.A. in International Management from Thunderbird, The American Graduate School
of International Management.

- Director & President Domestic Formulations Business

Mr. Shaunak Amin has graduated from University of Massachusetts, USA with
Economics as his specials. He has varied work experience with renowned Multinationals
including Merril Lynch, Hong Kong and Shanghai Banking Corporation etc. His
extensive experience in Sales & Marketing has benefited the Company immensely in
achieving the new heights in sales.

- Director , President - Finance & Company Secretary

Mr. Rajkumar Baheti, is commerce graduate and a fellow member of the Institute of
Chartered Accountants of India. He is also a fellow member of the Institute of Company
Secretaries of India with experience in finance, accounts, taxation and management
function. He has been on the Board of the Company and his presence on the Board has
contributed to the growth of the Company.

- Chartered Accountant

Mr. Milin Mehta is a Senior Partner of M/s. K.C. Mehta & Co., a reputed Chartered
Accountants Firm, since more than 2 decades. In the professional practice he is mainly
engaged in the area of providing consultancy to various corporate and non-corporate
bodies in the area of strategy, taxation (domestic & international) and Mergers &
Acquisitions, Joint Ventures.

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 Group of Companies
Alembic Limited is a Vadodara based company engaged in power generation and real estate
sectors. Power generation is carried out through co-generation power plant and wind mills
which are entirely used in captive consumption. The company is also involved in
manufacturing and marketing of fermentation & chemistry based Active Pharmaceuticals
Ingredients (API).

Yera is the leading manufacturer of exquisite glassware since

50 years. It has more than 150 ready dazzling designs of
drinking glasses, bowls, plates, juice/beer mugs, coffee/tea
mugs, ice-cream cups, storage jars, jugs and attractive gift sets
to suit every need. Yera - the name has become synonymous
with the classiest glass products in India and across the world.

Shreno Ltd. is a part of the Alembic group of companies

situated in Vadodara, India. Established in 1962, Shreno has
emerged as one of the best equipped and most experienced
engineering solutions companies in the region. The company
offers a range of products and services to help the customers
achieve world-class manufacturing, productivity and reliability
standards.

Paushak, established in 1972, is a specialty chemicals

company belonging to the Alembic group. Located near
Vadodara, Gujarat, Paushak has mastered the production of
phosgene gas and phosgene based specialty Chemicals /
intermediates through its indigenously developed technology.

Alchemy, a brainchild of the 103-year-old Alembic group of

companies, is a leading real estate company in Vadodara. From
barren land to exquisite landscapes, blue prints to architectural
masterpieces, rooms to living spaces, dreams to reality; the
company is transforming your view of the world and the way
the world views you.

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 2. INTRODUCTION OF STUDY

Financial Management is that managerial activity which is concerned with the planning
and controlling of the firms financial resources. Though it was a branch of economics till
1890 as a separate or discipline it is of recent origin.

Financial Management is concerned with the duties of the finance manager in a

business firm. He performs such varied tasks as budgeting, financial forecasting, cash
management, credit administration, investment analysis and funds procurement. The
recent trend towards globalization of business activity has created new demands and
opportunities in managerial finance.

Financial statements are prepared and presented for the external users of accounting
information. As these statements are used by investors and financial analysts to examine
the firms performance in order to make investment decisions, they should be prepared
very carefully and contain as much investment decisions; they should be prepared very
carefully and contain as much information as possible. Preparation of the financial
statement is the responsibility of top management. The financial statements are generally
prepared from the accounting records maintained by the firm.

Financial performance is an important aspect which influences the long term stability,
profitability and liquidity of an organization. Usually, financial ratios are said to be the
parameters of the financial performance. The Evaluation of financial performance had
been taken up for the study with Alembic Limited as the project.

Analyses of Financial performances are of greater assistance in locating the weak spots
at the Alembic Limited even though the overall performance may be satisfactory. This
further helps in

Financial forecasting and planning.

Communicate the strength and financial standing of the Alembic Limited.

For effective control of business.

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 3. RATIONAL OF STYDY

3.1 Financial statements Analysis:

The financial statements provide some extremely useful information to the extent
that the balance sheet mirrors the financial position on a particular date in terms of the
structure of assets, liabilities and owners equity, and so on and the profit an loss account
shows the results of operations during a certain period of time in terms of the revenues
obtained and the cost incurred during the year. Thus, the financial statements provide a
summarized view of the financial position and operations of a firm. Therefore, much an be
learnt about a firm from a careful examination of its financial statements as invaluable
documents performance reports. The analysis of financial statements is thus, an important
aid to financial analysis.
The focus of financial analysis is on key figures in the financial statements and the
significant relationship that exists between them. The analysis of financial statements is a
process of evaluating the relationship between component parts of financial statements to
obtain a better understanding of the firms position and performance. The first task of the
financial analyst is to select the information relevant to the decision under consideration
from the total information contained in the financial statements. The second step is to
arrange the information in a way to highlight significant relationships. The final step is
interpretation and drawing of inferences and conclusion. In brief, the financial analysis is
the process of selection, relation and evaluation.

3.2 Ratio Analysis:

Ratio analysis is a widely-use tool of financial analysis. It can be used to compare the
risk and return relationships of firms of different sizes. It is defined as the systematic use
of ratio to interpret the financial statements so that the strengths and weakness of a firm as
well as its historical performance and current financial condition can be determined. The
term ratio refers to the numerical or quantitative relationship between two items and
variables. These ratios are expressed as (i) percentages, (ii) fraction and (iii) proportion of
numbers. These alternative methods of expressing items which are related to each other
are, for purposes of financial analysis, referred to as ratio analysis. It should be noted that
computing the ratios does not add any information not already inherent in the above
figures of profits and sales. What the ratio do is that they reveal the relationship in a more

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meaningful way so as to enable equity investors, management and lenders make better
investment and credit decisions.

The present study is attempt to evaluate the financial performance of Alembic ltd. Period
of five year has been studied for the purpose for proper evaluation of the company, a
number of ratios have been computed under four heads namely.
A) Profitability ratio
B) Productivity ratio
C) Solvency ration
D) Operation ratio

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 4. OBJECTIVES OF THE STUDY

Primary Objective:

ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES

ADOPTED BY
Secondary Objectives:
Supply chain management (SCM) in today's global environment, especially the E-

business is important to create significant competition advantages to firms and

business partners worldwide. Since the objectives and goals are essential factors in

the study of supply chain management in the E-business. The purpose of this

research paper is to present the research question, review the conceptual framework,

ERP and environment for SCMS, study their objectives, impact of SCM and utilize

any useful theories that may help identify the critical factors of the SCM. The

differences between Pre-Internet and E-business are also argued to clarify the further

research in this field.

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 5. RESEARCH METHODOLOGY

METHODOLOGY:
The project evaluates the financial performance one of the company
with help of the most appropriate tool of financial analysis like ratio
analysis and comparative balance sheet. Hence, it is essentially fact finding
study.

Primary Data:
Primary data is the first hand information that is collected during the period
of research. Primary data has been collected through discussions held with
the staffs in the concern department.
Observation
Personal Interviews

OBSERVATIONS - It is the methods of nothing and recording information

without asking specific question from the respondents. The advantage of this

method is that it is highly effective to provide information asked for.

PERSONAL INTERVIEWS(Questionnaire) - In this method I asks the

question from the Performa in the order questions are listed and record the

replies.

Secondary Data:
Secondary data studies whole company records and in which the project
work has been done. In addition, a number of reference books, journals and
reports were also used to formulate the theoretical model for the study. And
some information were also drawn from the websites.

Period of study:
The study covers the period of 2014-2015 at XYZ Limited
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 6. LIMITATIONS OF THE STUDY

As the study is based on primary and secondary data, the inherent

limitation of the secondary data would have affected the study.

1. The sample size chosen is covered only a small portion of the whole
population of Alembic , Vadodara.

2. The study is confined to limited period i.e. Six weeks.

3. Accuracy of the study is purely based on the information as given

by the respondents.

Data collected cannot be asserted to the free from crores, as the sample size
restricted to the employees. This study need to be interpreted carefully.
They can provide clues to the companys performance or financial
situation. But on their own, they cannot show whether performance is good
or bad. It requires some quantitative information for an informed analysis
to be made.

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 7. OUTCOME FROM THE
PROJECT
INDEX OF FINAL PROJECT REPORT

1. INTRODUCTION OF RATIONAL OF STUDY

2. DETAILS OF ORGANIZATION
3. REVIEW OF LITERATURE
4. OBJECTIVES OF STUDY
5. RESEARCH METHODOLOGY
6. DATA ANALYSIS
7. FINDINGS AND CONCLUSIONS
8. OBSERVATIONS AND SUGGESTIONS
9. LIMITATIONS OF STUDY
10. BIBLIOGRAPHY
11. ANNEXURE
12. APPROVED SYNOPSIS

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