EXECUTIVE SUMMARY

For any MBA student ,a learning combination of theory and practice is an invaluable asset, as it helps in understanding the core principle of business by way of first hand experience. This project is stepping-stone which will groom me for my future in corporate world. The broad objective of the project is to study the overall structure of manufacturing industry and service industry as well its individual each and every department of an organization. This training has given me enough opportunity to brush my various skills and it also help a lot to practically implement the theoretical knowledge. Each and every day of training in ATRA PHARMACEUTICAL PVT ltd. was a learning experience for me. The finance department deals in the best utilization of the available financial resources irrespective of the constraints. It is key department in any organization and plays major role in companys success and failure. The finance department makes the resources available to different departments and at the end of the year it analyze the results receives from utilization of resources to increase the profitability of the company by maintain the liquidity and at the minimum risk. This project titled as Analysis of working capital helps me in analysis of financial statements and other important financial aspects of the company.

INTRODUCTION TO THE CONCEPT

Each project in itself has some value or importance. The reason I took Analysis of working capital as a project in ATRA PHARMACEUTICAL PVT Ltd. because it is interrelated and has its own importance in the finance and whole business process. Financial statement provides the best guide for future resources allocation by a firm. Its mission is to maximize the value of firm. There are three main financial decisions which a manager has to take. Investment decision Financial decision Dividend decision

These all are inter-related with each other and are of equal eminence of significant rate in achieving the objective. These are relating to the section of asset in which the fund will be invested by the organization. A firm may be acquiring two types of assets.

Fixed assets or long term assets. Current assets or short term assets.

OBJECTIVE OF STUDY

1.It is customary that under two years of full time Course of MBA degree, a Student has to undergo different training programs so as to establish himself capable of managing at the place of his job after the completion of the degree. One of such program is Inplant training, which a student has to take in joining a specific organization of choice for a specific period depending upon specialization he/she has opted for. 2.The main objective of carrying out this project is to Know and gain practical knowledge and to know the organizations working culture. 3.The purpose is that to know the Operations of the organization so as to do the training thorough study. The project study also provides an opportunity to develop communication skill, analytical skill and also expose to the organizations culture and the actual working of the organization.

COMPANY PROFILE

Name of the organization:

ATRA Pharmaceutical pvt ltd. ATRA PHARMACEUTICALS LTD. H-19, MIDC, Waluj, Aurangabad - 431133. INDIA Tel.: (91) 240 6603311/6603322 Fax.: (91) 240 6603366

Plant Location:

Origin: Regd. Office/work

Aurangabad in the year 1988. Mumbai Office: D - 402, Krishna Galaxy Dattmandir Road, Vakola Santaceuz (East) Mumbai - 400 055. Tel. : +91 022 26680072/26682059 Fax : +91 022 26682059 Email: works@atrapharma.com
IDMA's Quality Excellence Award, 1996.

Website: Quality Certificate:

Capacity:

Tablets : 1350 MIO/ Annum. Capsules: 150 MIO/ Annum. Liquids : 6000 KL/ Annum.

ORS Powder Sachets: 25 MIO/ Annum Employee: 124

At 45 minutes flying time form Mumbai, amongst the monumental sculptures of Ajanta and Ellora in the city of Aurangabad stands the manufacturing facility of Atra Pharmaceuticals Ltd. ATRA, a name synonym with Quality and Trust is accredited with ISO 9001. ATRA's state of art manufacturing facility meets the stringent current Good Manufacturing Practices norms laid down by the World Health Organisation (WHO-GMP). ATRA is promoted by technically qualified, financially sound, professionally experienced technocrats who crave for innovation and value addition. The people of ATRA are well knit, highly motivated professionals, who always encourage initiative and gather a deep sense of job satisfaction. At ATRA, solid dosage formulations are manufactured such as Tablets, Capsules and Oral Solid dosage forms. At its sister concern Savera Pharmaceuticals Private Limited Liquid Oral formulations such as Syrups, Suspensions and Elixirs are manufactured. ATRA is a part of Savera Group of companies which is 30 years old. Savera Group has diverse business interest in Engineering, Transport, Retail Outlets, Film Exhibition & Distribution, IT Education etc. Atra is in process of putting it's 3rd manufacturing unit at Aurangabad which will comply requirements of US-FDA norms. This unit will have certification from MHRA, TGA, MCC, EU health authorities.

NATURE OF THE BUSINESS CARRIED

ATRA Pharmaceutical pvt ltd. Provide the quality of drugs and medicines both in liquid and solid dosage for Indian as well as foreign market by setting up a world class facility for manufacturing pharmaceutical products.

MISSION

To provide succor and relief to the society at large in the field of Human Health and environment. Shoulder our share of responsibility to society and environment.

VISION

Achieve the real amalgamation of technology and wisdom. We aspire to reach ACME and become a World Class Pharmaceutical company.

QUALITY POLICY

We manufacture and market Pharmaceutical products, which will satisfy continuing needs of our customers. This will be achieved by application of sound Quality Management System and adopting current Good Manufacturing Practices and complying all regulatory requirements.

While doing so we shall keep in mind safety of our employees, all work processes as well as our natural environment. The company shall manufacture products of high quality, which shall be safe for human consumption and shall have consistent properties of dosage form.

We consider our human resources as one of the biggest asset. Our qualified and trained staff is provided constant training to upgrade their knowledge and stay conversant with state of art technology.

We value motivation amongst our personnel as an important factor to make them more competent and quality conscious. The quality assurance of its products is the obligation of the company and all the departments of the company share it by keeping vigil while purchasing, maintaining, manufacturing, and testing, distribution and marketing of its products.

The company shall make available all the requisite measures and resources to achieve the above goals.

PRODUCT AND SERVICES

Ayurvedic Brand Range Brand Range

Allopathic

Generic Range
ANTACIDS ANGINALS ANTI ASTHMATIC DEPRESSANT ANTI DIABETIC ANTI ALLERGIC ANTI BACTERIAL VITAMINS ANTI ANTI SEDATIVES

Probiotics Product Range

SACCHAROMYCES BOULARDII CAPSULES LACTOBACILLUS ACIDOPHILUS, BIFIDOBACTERIUM INFANTIS & STREPTOCOCCUS FAECIUM CAPSULES

Calcium Supplemet Product Range

CHEWABLE CALCIUM CARBONATE TABLETS BP ATRACAL CHEWABLE CALCIUM CARBONATE TABLETS BP ATRACAL CALCIUM WITH VITAMIN D TABLETS USP ATRACAL 500 TABLETS CALCIUM AND VITAMIN D WITH MINERALS TABLETS USP

AREA OF OPERATION REGIONAL/NATIONAL

ATRA pharmaceutical pvt ltd provides their products not only to the pharmaceutical companies in Maharashtra but also in other state of the country. The main destination of ATRA pharmaceutical pvt ltd. across the country is 1.East India west Bengal, Jharkhand, Madhya Pradesh 2.South east India- Andhra Pradesh, Tamil nadu, Karnataka.

CONTRACT MANUFACTURING
ATRA is one of the leading contract manufacturers in India. ATRA clientele includes Multi National companies like:

Novartis Merck Ajanta Serdia Bio-ved Pharmaceuticals Pvt.Ltd. RK Pharmacia Over the years ATRA has acquired the reputation for its quality and consistency, service and timely delivery.

ORGANIZATION STRUCTURE

Chairman ATRA Group:

Hon. Shri Moreshwar Save Ex - Member of Parliament Ex - Mayor of Aurangabad City

Managing Director:

Mr.Anil Save

General Manager: Department wise Organization:

Mrs.Arora

Production: ManagerQuality Assurance: ManagerHR and Administration: MangerMarketing: ManagerFinance and Account: ManagerMrs.A.P.Bhale Dr.Rajeev Churi Mr.D.L.Bhale Mrs. Ayesha Syed Mr.J.M.Molker

COMPETITORS INFORMATION

ATRA Pharmaceutical pvt ltd a leading Pharmaceutical company has some main competitors in India. Orchid Pharmaceutical pvt ltd Wokhardt Pharmaceutical pvt ltd Ajanta Pharma pvt ltd Bio-ved Pharmaceuticals Pvt.Ltd. RK Pharmacia ltd. SVIZERA healthcare ltd INDI Pharma pvt ltd. Cadila healthcare ltd. These are the main competitors of ATRA pharmaceutical pvt ltd. There are some foreign competitors are also for the Atra because it exporting its products across the country. DAP Pharma pvt ltd Zet healthcare pvt ltd

INFRASTRUCTURAL FACILITY

ATRA pharmaceutical pvt ltd. was establishes with the sole concern and mission of providing world-class medicines and liquid dosage to the deceases and help to overcome the problems of the patients. This concern is reflected in every aspect of our manufacturing facility-right from the plant layout through machinery and technology to dispatch. The plant is located at Aurangabad in Maharashtra- the most industrially developed state in India.

This state-of-the-art unit is equipped with fully automatic production lines imported from Europe and using Optistem technology of schott group. These together ensure that our products are at par with any international standards.

These fully automatic production lines consist of electronic, pneumatic and computer machinery, controlled rate cooling system, online electronic tracks check all quality parameters including dimensions, online printing and packaging.

These hi-tech equipments ensure accuracy during the critical shaping and filling of capsules. Further, they carefully control the processing temperature and accuracy in calibration, thereby significantly reducing the damage.

FINANCIAL CONDITION
Finance department the central hub of any organization. It is one of the most important functions of any corporate body: sufficient capital and its proper allocation facilitate smooth function of any organization. The company has adequate internal control system with appropriate control checks. An effective measure has been taken to ensure that all assets of the company are protected and all transaction is recorded in conformity with generally accepted accounting principles.

ACHIEVEMENT

ISO 9002: 1994 since Aug 1996. ISO 9001: 2008 in Sep-2002. WHO GMP Certificate since 1997. Certificate of merit for Outstanding Exports Performance 2001-2002 IDMA's Quality Excellence Award, 1996. First prize in District Industries Award.

GREENERY TODAY FOR PROSPERITY TOMORROW ENVIRONMENT POLICY

We shall manufacture and market Pharmaceutical products keeping in mind safety of all work processes as well as our Natural Environment. We shall keep ourselves updated with all the legal and regulatory requirements in terms of any kind of pollution such as Air, Water, Noise, soil etc and comply with them in all respects.

We shall regularly monitor the Environment aspects related to various activities undertaken at our plants and study its impacts. We shall provide constant training at different levels to our employees on Safety, Health and Environment, so as to create ability to handle and dispose all types of waste and products safely and without making unacceptable risks to human health or the Environment.

We consider it as our responsibility to make known potential hazards to all concerned not only within the Organisation but even those whom we can influence. If a hazard is discovered after its occurrence, it is our responsibility to make the observations known thereafter.

The Organisation shall make available all requisite measures and resources to achieve the above goals.

CONTRACT RESEARCH
Atra provides a platform for giving leading edge pharmaceutical innovations. We offer solutions to drug delivery complexities. ATRA has the ability and competence to provide support and carryout studies and make solutions more visible. Contact us for your challenges and we will help you search for unique Delivery options. We believe in constantly asking ourselves What more could you want for your product? We act as catalyst between healthcare innovators, their agents and the study site to potentially benefit intended patients. Our bioanalytical department has a proven track record for method development and validation.

DATA COLLECTION: Data has been collected through primary as well as secondary data sources.

Primary data:
The study is based on primary data and information obtains by visiting accounts department of ATRA Pharmaceutical pvt ltd.

Secondary data:
The secondary data was obtained by accessing various books of finance and accounts. Statistical information is collected from the annual report of the company.

Methodology:
Methodology was done by observing working procedure and making discussion with concerned authorities. The information was also taken from internal guide and accounts manager of ATRA Pharmaceutical pvt ltd. Working capital management is studied with the help of ratio analysis and statement showing changes in working capital.

Working capital

Definition of working capital Working capital according to the time honoured definition -Professor Henry G.n Gethmann & Herbere E. Daugall Is the excess of current asset over current liabilities. Professor C.W.Gerstonbeg Any comprehensive discussion on the working capital includes the excess of current asset over liabilities

Professor R.D.Kenedlly & Professor S.Y.McMulen A working capital deficit exist if current liabilities excess current assets

V.L. Gole Whenever working capital is creation it brings mend to current assets & current liability with a general understanding that working is the differ on between the two

Professor J.I.Bogess Working Capital & current assets are inter changeable trends

WORKING CAPITAL MANAGEMENT.

WORKING CAPITAL = CURRENT ASSETS CURRENT LIABILITIES CURRENT ASSETS: a) b) c) Liquid assets. Inventory Debtors & receivables.

CURRENT LIABILITIES: a) b) c) Bank overdraft. Creditors & bills payables. Other short term liabilities.

The working capital is the difference between an organizations current assets and its current liabilities. Of more importance is its function which is primarily to support the day-to-day financial operations of an organization, including the purchase of stock, the payment of salaries, wages and other business expenses, and the financing of credit sales. Working capital comprises a number of different items and its management is difficult since these are often linked. Hence altering one item may impact adversely upon other areas of the business. For example, a reduction in the level of stock will see a fall in storage costs and reduce the danger of goods becoming obsolete. It will also reduce the level of resources that an organization has tied up in stock. However, such an action may damage an organizations relationship with its customers as they are forced to wait for new stock to be delivered, or worse still may result in lost sales as customers go elsewhere.

Principles of working capital management

The term current assets refers to those assets held by a business which can be converted in the form of cash or used during the course of normal operations within a short span of time say one year, without any reduction in value. Current assets change the shape very frequently. The current assets smooth and fluent business operations and are considered to be life-blood of the. In case of a manufacturing organization, current assets may be found in the form of stocks, receivables, cash and bank balances and sundry loans and advances. The term current liabilities refers to those liabilities which are to be paid off during the course of business, within a short span of time say one year .they are expected to be paid out of current assets or the earnings of the business. Current liabilities consist of sundry creditors, bills payable, bank overdraft or cash credit, outstanding expenses etc.

Importance of working capital

Generally, it will not be possible for any organisation to operate without the working capital. Let us assume that a manufacturing organisation commences it business with a certain amount of cash. This cash will be invested to buy the raw material. The raw material purchased will be processed with the help of various infrastructural facilities like machinery etc. To convert the same in the form of finished products. These finish product will be sold in the market on credit basis whereby the receivable get created. And when receivables make the payment to the organisation, cash is generated again. As such there is a cycle in which cash available to the organisation is converted back in the form of cash .this cycle is referred to as working capital cycle.

Cash

Debtors

Raw material

Finished goods

Factors influencing working capital requirement

1) Nature or character of Business: The working capital requirement of a firm basically depends upon nature of its business. Public utility undertaking like Electricity, Water Supply, and Railways need very limited working capital because they offer cash sales only and supply services, not products and as such no funds are tied up in inventories and receivables. On the other hand trading and financial firms require less investment in fixed assets but they have to invest large amount in current assets like inventories, receivables and cash. So they need large amount of working capital. 2) Production cycle: Another factor, which has a bearing on the quantum of working capital, is the production cycle. The term production or manufacturing cycle refers to the time involved in the manufacturing of goods. It covers the time span between

the procurement of raw material and the completion of the manufacturing process leading to the production of finished goods. In other words, there is sometime gap before raw material becomes finished goods. To sustain such activities that need for working capital is obvious. The longer time span (production cycle) the large will be the tied up funds and therefore, larger is working capital need and vice versa. 3) Production Policy: In certain industry the demand is subject to wide fluctuations due to seasonal variations. The requirement of working capital in such case, depend upon the production policy. The production can be either kept steady by accumulating inventories during slack period with a view to meet high demand during peak season of the production could be curtailed during the slack season and increased during the peak season. If policy is to keep production steady by accumulating inventories it will require higher working capital.
4) Credit Policy:

The credit terms granted to customers have a bearing in the magnitude of working capital by determining the level of book debts. The credit sales result in higher book debs. Higher book debts mean more working capital. On the other hand, if liberal credit terms are available from the supplies of goods trade needs less working capital .The working capital requirement of a business are thus, affected by term of purchase and sale, and the ole given to credit by a company in its dealing with creditors and debtors.

5) Growth and Expansion: The working capital requirement of concern increase with the growth and expansion of its business activities. Although, it is difficult to determine the relationship between the growth in the volume of business and

the growth in the working capital of a business, yet it may be concluded that for normal rate of expansion in the volume of business. We may have retained profits to provide for me working capital but in fast growing concern, we shall require lager amount of working capital. 6) Seasonal Variation: In certain industry raw material is no available throughout the year. They have to buy raw material in bulk during the season to ensure uninterrupted flow and process them during the entire year. So a huge amount is blocked in form of row material during the peak season, which gives more requirements for working capital and less requirement during the slack season. 7) Earning Capacity: Some firm have more earning capacity than others due to quality of the products, monopoly condition etc. Such firms with high earning capacity may generate cash profits from operations and contribute to their working capital. 8) Dividend Policy: The dividend policy of a concern influence on the requirement of the working capital. A firm that maintains a steady high rate of cash dividend irrespective of its profits level needs more working capital than the firm that retains large part of its profits and does not pay at high rate of cash dividend. 9) Other Factors: Certain other factors such as operating efficiency, management ability, irregularities in supply, import policy, assets structure, importance of labour, banking facilities etc, also influence the requirement of working capital.

Working capital statements Statement of Working Capital for the year 2010 & 2011 Particular Amt(Rs.) 2010 Amt 2011

A. Current Assets 1. Inventories 2. Sundry Debtors 3. Cash & Bank Balances 4. Loans & Advances 23729108 2269224 14397139 1500110 23523947 Total Current Assets 0 2583521 9 2676225 1502279 B. Current Liabilities 1. Current Provision Liabilities & 6 63150305 6622648 0

Total Current Liabilities 9792073 1257419 5

9792073 Working Capital (A-B)

1257419 5

53358232 5365228 5

RATIO ANALYSIS
INTRODUCTION
The ratio analysis has emerged as the principal technique of the analysis of financial statements. A ratio is a relationship expressed in mathematical terms between two individual or group of figures connected with each other in some logical manner. The ratio analysis is based on the premise that a single accounting figure by itself may not communicate any meaningful information but when expressed as a relative to some other figure, it may definitely give some significant information. The relationship between two or more accounting figures/groups is called a financial ratio. A financial ratio helps to summarize a large mass of financial data into a concise form and to make meaningful interpretations and conclusions about the performance and positions of a firm.

DEFINITION AND MEANING OF RATIO ANALYSIS

Ratio analysis is widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weakness of a firm as well as its historical performance and current financial condition can be determined. Ratio analysis is one of the powerful tools of financial statement analysis. A statement indicates a quantitative relationship between the figures and groups of figures which can use for evaluation and decision making. The ratios reveal the relationship in more meaningful way so as to enable us to draw conclusions from them. They enable analyst to draw conclusions regarding financial position.

IMPORTANCE OF RATIO ANALYSIS

As a tool of financial management, ratios are of crucial significance. The importance of ratio analysis lies in the fact that it presents facts on comparative basis and enables the drawing of inferences regarding the performance of a firm. Ratio analysis is relevant in assessing the performance of a firm in respect of the following aspects:
1. Liquidity Position:

With the help of ratio analysis conclusions can be drawn regarding the liquidity position of a firm. The liquidity position of a firm would be satisfactory if it is able to meet its current obligations when they become due. A firm can be said to have the ability to meet its short-term liabilities if it has sufficient liquid funds to pay the interest on its short-maturing debt usually within a year as well as to repay the principal. The liquidity ratios are particularly useful in credit analysis by banks and to the suppliers of short-term loans. Long-term Solvency: Ratio analysis is equally useful for assessing the long-term financial viability of a firm. This aspect of the financial position of a borrower is of concern to the long-term creditors, security analysts and the present and potential owners of a business. The long-term solvency is measured by the leverage/capital structure and profitability ratios which focus on earning power and operating efficiency.
2. Operating Efficiency:

It throws light on the degree of efficiency in the management and utilization of its assets. The various activity ratios measure this kind of operational efficiency. In fact, the solvency of a firm is, in the ultimate analysis, dependent upon the sales revenues generated by the use of its assets total as well as its components.

3. Overall Profitability:

The management is constantly concerned about the overall profitability of the enterprise. That is, they are concerned about the ability of the firm to meet its short-term as well as long-term obligations to its creditors, to ensure a reasonable return to its owners and secure optimum utilization of the assets of the firm. This is possible if an integrated view is taken and all the ratios are considered together.

4. Inter-firm Comparison: Ratio analysis not only throws light on the financial position of a firm but also serves as stepping stone to remedial measures. This is made possible due to inter-firm comparison and comparison with industry averages. Inter-firm comparison is necessary to find out the exact position of a firm as compared to other firms in the same industry. Intra-firm comparison is also necessary to compare the performance of a firm of a current year with that of previous year.

5. Trend Analysis:

Finally, ratio analysis enables a firm to take the time dimension into account. In other words, whether the financial position of a firm is improving or deteriorating over the years. This is made possible by the use of trend analysis. The significance of a trend analysis of ratios lies in the fact that the analysts can know the direction of movement, that is, whether the movement is favourable or unfavourable.

ADVANTAGES OF RATIO ANALYSIS

It guides management in formulating future financial planning and polices. It throws light on the efficiency of business organization. It permits comparison of the firms figures with data for similar firms, and possibly with industry wise data. And it permits the data to be measured against yard stick of performance or of sound financial conditions. It ensures effective cost control. It provides greater clarity, perspective or meaning to data and it brings out information not otherwise apparent. It measures profitability and solvency of a concern. It permits monetary figures of many digits to be condensed to two or three digits which enhance the managerial efficiency. It helps in investment decisions.

LIMITATIONS OF RATIO ANALYSIS

Ratios are calculated from financial statements which are affected by the financial bases and policies adopted on such matters as depreciation and the valuation of stocks. Financial statements do not represent a complete picture of the business, but merely a collection of facts which can be expressed in monetary terms. These may not refer to other factors which affect performance.

Working Capital Ratios

Working capital ratios indicate the ability of a business concern in meeting its current obligations as well as its efficiency in managing the current assets for generation of sales. These ratios are applied to evaluate the efficiency with which the firm manages and utilizes its current assets. The following 2 categories of ratios are used for efficient management of working capital: (1) (2) Efficiency ratios idity ratios

Efficiency Ratios:
Working Capital Turnover Ratio:The larger the net sales as compared to the net working capital, the less favourable is the situation likely to be if the resultant turnover of working capital has been made possible by use of any of an excess amount of current credit . This ratio reflects the extent to which a business is operating or a small or large amount of working capital in relation to sales. A very high ratio may be result of overtrading on the other hand a very low ratio is indication of under trading. Such result of analysis of turnover of working capital ratio should be meaningful in evaluating business efficiency. It has been represented as

Sales Working Capital Turnover Ratio = Working Capital

Year

Sales

working capital

Ratio

2010 2011

93486057 53358232 66535198 53358231

1.752 1.240

Inventory Turnover Ratio:This ratio indicates the efficiency and effectiveness of

inventory management. The ratio shows how speedily the inventory is turned into accounts receivables through sales. The higher the ratio, more efficiently the inventory is said to be managed and vice versa. It has been represented as

Inventory Turnover Ratio Sales / Inventory

Year 2010 2011

Sales 93486057 66535198

Inventory 22692240 23729108

Ratio 4.119 2.803

Current Assets Turnover Ratio:The ratio indicates the efficiency with which current assets turn into sales. A higher ratio implies by and large a more efficient use of funds. Thus high turnover rate indicates reduced lock-up of funds in current assets. An analysis of this ratio over a period of time reflects working capital management of firm. It has been represented as
Sales Current Assets Turnover Ratio = Current Assets

Year 2010 2011

Sales 66535198 93486057

Current assets 66226480 63150305

Ratio (in times) 1.004 1.480

Liquidity ratios
Current Ratio

The most widely used measure of liquid position of a firm is the current ratio. This ratio is also known as the ratio of current assets to current liabilities or working capital ratio the current ratio is computed by dividing current assets by current liabilities. Current assets include cash and those assets which can be converted into cash within a year, such marketable securities debtors and inventories etc. The current ratio analyses a general picture of the adequacy of the working capital of a company and of the company ability to meet its day to day payment obligations. It likewise measures the margin of safety provided for paying current dues in the event of

reduction in the value current assets. The current ratio can be computed as follows

Current Assets Current Ratio =

Current Assets 2010 2011 66226480 63150305

Current
Current Liabilities 12574195 9792073 Ratio 5.266 6.449

Quick Ratio
The quick ratio is another widely used device for judging the shortterm debts repaying ability of the business in the future. The ratio is designed to show the amount of cash available for meeting immediate payments. The quick ratio is also called as solvency ratio, acid test ratio. The quick ratio is the ratio between quick assets and quick liabilities and it is calculated by dividing the quick assets by the quick liabilities The term quick assets refer to current assets, which can be converted into, cash immediately or at a short notice without diminution of value. It includes cash and bank balance, marketable securities and debtors. Generally a quick ratio of one-to-one is considered to represent a satisfactory current financial position. When it is not it implies that the quick assets do not cover current liabilities, and therefore steps should be taken for additional cash. The

fundamental object of calculating this ratio is to enable finance officer to ascertain as to what would happen if the current creditors pressed for immediate payment.

The formula for calculating this ratio is as follows:

Current Assets-Inventories Liquid Assets Liquid Liabilities Quick Ratio = 2010 43534240 12574195 Current Liabilities-Bank overdraft 39421197 2011 9792073 Year Ratio 3.462 4.025

Debtors Turnover Ratio Debtors Turnover Ratio shows the credit collection policy of the business. It indicates for how many days the Debt remain uncollected from credit customer. Lesser the period favorable for the business & vice-versa. It can be formulated as

Debtor+ bills Receivables 365 Credit sale Debtors Turnover Ratio =

Year 2010 2011

Debtors 25835219 14397139

Sales 93486057 66535198

Ratio 100.86days 78.98days

The companys liquidity position in terms current ratio & quick ratio has been maintained at a comfortable position.

Findings After doing the In-plant in ATRA pharmaceutical pvt ltd. I found following points that are1. No departmental barriers are observed and personnel of all departments work with co-ordination and cooperation. 2. Workers and staff are provided adequate welfare activities and hence are comfortable with the organization. 3. Expenses on Import row material and sales promotion are high. 4. Communication process between departments is good.

Suggestions

The working capital turnover ratio is not so good so the company have think about the arrangement of working capital fund & their utilization.

The organization think about the inventory is turn into accounts receivable through sales because the inventory turnover ratio of the company is not so good it is decreased year by year for that purpose they should apply just in time method for proper management of inventory.

The current asset turnover ratio is not also so much good The company have to proper utilization of current asset & turn it into sales

SWOT Analysis Strengths Right products, quality and reliability. Superior product performance. Product innovations ongoing. Have customer lists. Weaknesses Need more sales people. Limited budget.

Lack of space. Opportunities Could develop new products. Could seek better supplier deals. Threats Existing core business distribution risk. High Competition. Retention of key staff critical.

Learning Experience During my summer training project, I learnt so many things in company.

Following are the achievement: 1. Knowledge of Pharmaceutical packaging sector. 2. How to work on a project assigned to you. 3. Market potential, scenario for business. 4. Time management. 5. Handling different financial statement tools. Taking about the learning experience it was a great experience working under Anuradha Bhale (manager), Finance department in ATRA Pharmaceutical pvt ltd. I learnt a lot about financial transaction in an organization. Special thanks to Mr. Molker (manager) production department under whose guidance I learnt lot about a production in a company.

Bibliography Reference Sites: www.atrapharma.co.in Books: Financial management V.K. Bhalla Financial management I.M.Pandy