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AURORA’S TECHNOLOGICAL

AND
RESEARCH INSTITUTE

Parvathapur, Uppal, RR Dist. 501301

COMPANY ANALYSIS REPORT


ON
FINANCIAL POSITION OF THE
BHARATH HEAVY ELECTRICALS LIMITED

By

D.RAVI KUMAR
REG NO 08841E0014

UNDER THE GUIDANCE OF

SEEMA MADAM

For
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
HYDERABAD-A.P
INTRODUCTION TO THE PROJECT
The project is all about the study of observations, Trend, Future
project problems and comparative growth rate, PAT sales turn over
and few ratios around ten

OBJECTIVE, SCOPE AND NEED OF THE STUDY:


The main objective of the project is to analyze the financial
performance of the company using the tools of financial analysis
viz ratio and Funds flow analysis .The data from the company’s
Financial statements are used to calculate the firm’s Financial
ratios and to prepare funds flow statement in order to determine
the efficiency and performance of the company’s management as
reflected in Financial reports. Financial analysis tools help in
evaluating the company’s liquidity conditions, profitability, capital
structure and operational efficiency.
The objective of financial analysis is to identify the financial
strength and weakness of the company in order to make the best
use of its strength and take suitable corrective actions to check the
weakness.
To gain an insight into operating and financial characteristics of
the accounting data and financial statements viz., balance
sheet and income statement.
To locate the symptoms of the operating and financial problems
confronting the company and determining the cause of the
problem and suggesting corrective solutions.
To acquaint with research methodology involving data collection,
calculating, tabulation, besides the numerical and graphical
presentation

NEED FOR STUDY:


The analysis helps company to assess its position, which is to be
introduced and standardized for this organization, which is looking
ahead, and the ratios calculated for a number of years work as a
guide for the future. The financial strengths and weaknesses of
firm are communicated in a mare easy and understandable
manner by the use of ratios. Ratio analysis also helps in effective
control of the business.

DECLARATION:-
I do here by declare that the dissertation entitled
“COMPANY ANANLYSIS REPORT” submitted by me to the
department of Business of Management of Aurora’s
Technological and Research Institute, Jawaharlal Nehru
Technological University, Parvathapur, Uppal is a bonafide work
undertaken by me and not submitted to any other university or
institution for award of my Degree/Diploma/certificate or
published any time before.

PLACE:
DATE: D.RAVI KUMAR
REG NO 08841E0014
CERTIFICATION:-
This is to certify that the Report title COMPANY ANALYSIS
REPORT is submitted in partial fulfillment of the award of MBA
Department of business management, Aurora’s Technological
and Research Institute, Parvathapur, uppal, Hyderabad-501301
was carried out by D.RAVI KUMAR I
under my guidance. This was not submitted to any other
university or institution for award of my Degree / Diploma /
Certificate

Internal guide
ACKNOWLEDGEMENT:-
It is indeed a pleasant task to thank all the people who have
contributed towards the successful completion of this
“COMPANY ANALYSIS REPORT”

I take the opportunity to thank principal of Aurora’s


Technological and Research Institute for providing me an
opportunity to carry on the report work

I express my sincere gratitude to Prof.NAGARAJU (HOD)


Department of Business Administration, Aurora’s Technological
and Research Institute. For his able
Supervision during the course of the report.

I thank to Prof SEEMA MADAM, Faculty and the internal


guide, Department of business Administration, Aurora’s
Technological and Research Institute for the kind cooperation and
guidance.
METHODOLOGY OF THE STUDY:
The first phase of the project involves collection of data from the
sites of an organization. Secondary data collection is from P&L
Accounts and Balance Sheets published in the year wise annual
reports of the organization.
The methodology to be followed here is;
Preparation of numeric data tables with data of accounting
year wise factors of ratios along with calculating ratios.
Graphical presentation of the ratios indicating changes.
Interpretation with the help of numeric and graphical
presentation.
Opinion based on results of the analysis with conclusion.
Financial statement
analysis
Financial statements are prepared for decision making. Financial analysis is the
process of identifying the financial strengths and weaknesses of the firm by properly
establishing relationship between the items of the balance sheet and profit and los
account. There are various methods or techniques used in analyzing financial
statements, such as comparative statements, trend analysis, common size statements,
schedule of changes in working capital, funds flow and cash flow analysis and ratio
analysis.

Financial statement analysis is largely a study of relationship among various


financial factors in a business as disclosed by a single set of statements, and the
trend of these factors as shown in a series of statements.

The purpose of financial analysis is to diagnose the information contained in


financial statements analysis is an attempt to determine the significance and meaning
of the financial statements date so that forecast may be made of the future financial
position and performance.

Procedure of financial statements analysis:

Broadly speaking there are three steps involved in the analysis of financial
statements. These are:
1) Selection
2) Classification
3) Interpretation

The first step involves selection of information relevant to the purpose of


analysis of financial statements. The second step involved methodical classification
of data and the third step includes drawing of interpretations and conclusions.
Methods or devices of financial analysis:

The analysis and interpretation of financial statements is used to determine the


financial position and results of operations as well. A number of methods or devices
are used to study the relation ship between different statements. An effort is made to
use those devices which clearly analysis the position of the enterprise.

The following methods of analysis are generally used:

1) Ratio analysis
2) Comparative analysis
3) Common size analysis
4) Funds flow statements
5) Cash flow analysis
RATIO ANALYSIS

1. INTRODUCTION:
The ratio analysis is one of the most powerful tools of financial
analysis. It is the process of establishing and interpreting various ratios. It is with
the help of ratios that the financial statements can be analyzed more clearly and
decisions made from such analysis.
A ratio is a simple arithmetical expression of the relationship of one
number to another. It may be defied as the indicated quotient of two
mathematical expressions.
Ratio analysis is a technique of analysis and interpretation of financial
statements for helping in making certain decisions. It is a better understandinjg of
financial strengths and weakness of a firm. There are number of ratios which can
be calculated from the information gives in the financial statements. But the
analysis has to select the appropriate data and calculated a few appropriate ratios
from the keeping in mind the objective of analysis.
The following are the four steps involving in the ratio analysis.
1. Selection of relevant data from the financial statements
Depending upon the objective of the analysis.

2.Calculate of appropriate ratios from the above data.


3. Comparison of the calculated ratios with the ratio developed from projected
financial statements or the ratio of some other firms or the comparison with
ratio of the industry to which the firm belongs.
4. Interpretation of ratios.
The observation of the ratios is an important factor. Observation of the ratios is an
important factor. Observation needs skills, intelligence and fore sightedness the
inherent limitations of ratio analysis should be kept in mind while interpreting them.
A single ratio in itself does not convey much of the sense. To make ratios useful,
they have to be further interpreted.
2. GUIDELINES FOR USE OF RATIOS:

The calculation of ratios may not be difficult task but their use is
not easy. Following are the guidelines or factors may be kept in mind, while
interpreting various ratios.

a. Accuracy of financial statements:


The ratios are calculated from the data available in financial statements
the reliability of ratios is linked to the accuracy of information in these statements.

b. Purpose of analysis:
The type of ratios to be calculated will depend upon the purpose for
which these are required if the purpose is to study the current financial position then
ratios relating to current assets and current liabilities will be studied. The purpose of
user is also important the analysis of ratios. A creditor a banker and investor,
shareholders, all have different objects for studying ratios.

c. Selection of ratios:
Another precaution in this analysis is the proper selection of
appropriate ratios. The ratio should match the purpose for which those are required.

d. Uses of standards:
The ratio will give an indication of financial position only. When
discussed with reference to certain standards unless other wise these ratios are
compared with certain standards. One will be able to reach at conclusion.

e. Caliber of the analyst:


The ratios are only the tools of analysis and there interpretation will
depend upon the caliber and competence of the analyst. He should be familiar
with various financial statements and the significance of changes extra.

3. USE AND SIGNIFICANCE OF RATIOS:


The ratio analysis is one of the most powerful tools of financial
health of enterprise. The use of ratios is not confined to financial manager. As
discussed earlier, these are different parties’ interest in the ratio analysis for knowing
the financial position of a firm for different purposes. The supplier of goods on
credit, banks, financial institutions, investor’s shareholders and management all
make use of ratio analysis as tools in evaluating the financial position and
performance of a firm for getting credit, providing loans or making investments in
the firm.

LIMITATIONS OF RATIO ANALYSIS:

Though ratios are simple to calculate and easy to understand, they


suffer from same serious limitations.

1. Limited use of single ratio:


A single ratio usually does not convey much of a sense, to make a
better interpretation a number of ratios have to calculate. This is likely to confuse the
analyst than help him in making any meaningful conclusion.
2. Lack of adequate standards:
There are no well accepted standards or rules of thumb for all ratios
which can be accepted as norms. It renders interpretation of the ratios difficult.
3. Inherent limitations of accounting:
Like financial statements, ratios also suffer from the inherent weakness
of accounting records such as their historical nature, ratio are the part are not
necessarily true indicators of the future.
4. Personal bias:
Ratios gave to be interpreted are different people may interpret the same
ratio in different ways.
5. Changes in accounting procedures:
A change i9n accounting procedures by firm often makes ratio analysis
misleading. The cost of sales and reducing considerable the value of closing
stock which makes stock turnover ratio to be creative and an unfavorable gross
profit ratio.
6. Window dressing:
Financial statements can easily be window dressed to present a better
picture of its financial and profitability position to outsiders. Hence, one has to be
very careful in making a decision from ratios calculated from such financial
statements.
7. Incomparable:
The nature of the firms of the similar business widely differs in their size
and accounting procedure. It makes comparison of ratio difficult and misleading
moreover, comparison are made difficult due to difference in definitions of
various financial terms used in the ratio analysis.
8. Absolute figure distortive:
Ratios devoid of absolute figures may prove distractive as ratio analysis
is primarily a quantitative analysis and do not a qualitative analysis.

CLASSIFICATION OF RATIOS:

The use of ratio analysis is to combined to financial manager only. There


are different parties in interested in the ratio analysis for knowing the financial
position of a firm for different purpose the particular ratios that might be used for
finance analysis.

Various accounting ratios can be classified as follows:

Liquidity ratios:

The short term creditors of a company like supplier of goods of credit and
commercial banks providing short term loans are primarily interested in knowing the
company’s ability to meet its current or short term obligations as and when these
become due. The short term obligations of a firm can be met only when there are
sufficient liquid assets.

Liquidity refers to the ability of a concern to meet its current obligation as


and when these become due. The short term obligations are met by realizing
amounts from current, floating or circulating assets. The current assets should be
convertible in to cash for paying obligation of short term nature. The sufficiency or
insufficiency of current assets should be assessed by comparing them with short
term liabilities.

To measure the liquidity of a firm, the following ratios can be calculated.


1. Current ratio
2. Quick ratio
3. Absolute liquid ratio.
1.Current ratio:

Current ratio may be defined as the relationship between current assets


and current liabilities this ratio also known as working capital ratio, is a measure
of general liquidity and is mostly widely used to make the analysis of liquidity of
a firm. This ideal ratio is 2:1.

Current ratio = current assets / Current liabilities

Current assets Current liabilities


1.Cash in hand 1.Out standing expenses
2.Cash at bank 2.Bills payable
3.Marketable securities 3.Sundry creditors
4.short term investments 4.Short term advances
5.Bills receivable 5.Income tax payable
6. Sundry debtors 6.Dividends payable
7.Inventories 7. Bank overdraft.
8.Work in progress
9. Prepaid expenses

Interpretation of current ratio:

A relatively high current ratio is an indication that the firm is liquid and has the
ability to pay its current obligations in time as and when they become due. On the
other hand, a relatively low ratio represents that the liquidity position of the firm is
not good and the firm shall not be able to pay its current liabilities in time without
facing difficulties. A ratio equal or near to the rule of thumb of 2:1 i.e., current assets
double the current liabilities is considered satisfactory.

Quick Assets Ratio:-

Quick assets ratio is also known as acid test ratio is more rigorous test of
liquidity than the current ratio. The term liquidity refers to the ability of a firm to
pay its short term obligations as and when they a measure of liquidity, are current
assets and current liabilities. Current assets include inventories and prepaid expenses
which are not easily convertible in to cash with in a short period. Quick asset
includes bills receivables, sundry debtors, marketable securities and short term (or)
temporary investments. Its ideal ratio is 1:1.

Quick assets ratio = quick assets / Current liabilities


Interpretation of quick ratio:

Usually a high acid test ratio is an indication that the firm is liquid and has
the ability to meet its current or liquid liabilities in time and on the other hand a low
quick ratio represent that the firms liquidity position is not good.
As a rule of thumb or as a convention quick ratio of 1:1 is considered
satisfactory. It is generally through that if quick assets are equal to current liabilities
then the concern may be able to meet its short term obligations. Although quick ratio
is more rigorous test of liquidity than the current ratio, yet it should be used
cautiously and 1:1 rule should not be used blindly. A quick ratio of 1:1 does not
necessarily mean satisfactory liquidity position if all the debtors cannot be realized
and cash is needed immediately to meet the current obligation.

Absolute liquid ratio:

Although receivables, debtors and bills receivables are generally more


liquid than inventories, yet there may be doubts regarding their realization into cash
immediately or in time. Hence this ratio should e calculated together with current
and acid test ratios so as to exclude even receivables from the current assets and find
out the absolute liquid assets. Its ideal ratio is 0.5:1.

Absolute liquid ratio = Absolute liquid assets / Current liabilities

Efficiency or Activity ratios:


Funds are invested in various assets in business to make sales and earn
profits. The efficiency with which assets are managed directly affects the volume of
sales. The better the management of assets, the larger is the amount of sales and the
profits. Activity ratios measure the efficiency with which a firm manages its
resources or assets. These ratios are also called turnover ratios because they indicate
the speed with which assets are converted or turned over into sales.

1. Inventory turnover ratio:


Inventory turnover ratio is also known as stock turnover ratio. Every firm
has to maintain a certain level of inventory of finished goods. Do as to be able to
meet the requirements of the business. The level of inventory should neither be too
high nor too low. It is harmful to hold more inventories for the following reasons
1. It unnecessarily blacks capital which can otherwise be profitable used some
where else
2. Overstock will require more go down space. So more rent will be paid
3. There are chances of obsolescence stock consumer will prefer goods of latest
design etc.
4. Slow disposal of stock will mean slow recovery of cash also which will
adversely affect liquidity
5. There are chances of deterioration in quality if the stocks are held for more
periods.
It is very essential to keep sufficient stock in business inventory turn over ratio also
known as stock velocity is normally calculated as sales/average inventory or cost of
goods sold /average inventory. It would indicate whether inventory has been
efficiently used or not, the purpose is to see whether only the required minimum
funds have been locked up in inventory.
Inventory turnover ratio = cost of goods sold / Average inventory stock
Observation of inventory turn over ratio:

Inventory ratio measures the velocity of conversion of stock in to sales.


A high inventory turn over indicates efficient management of inventory because
more frequently the stocks are sold, the lesser amount of money, is required to
finance the inventory. A low turn over ratio indicates an inefficient management of
inventory. A low inventory turn over implies over investment in inventories dull
business, poor quality of goods, stock accumulations, of accumulation of obsolete
and slow moving goods and low profits as compared to total investments a too high
turn over of inventory may not be the result of a very low level of inventory which
results in shortage of goods in relation to demand and a position of stock out or the
turnover may be high due to a conservation method of valuing inventories at lower
value or the policy of the firm being to buy frequently in small lots. A very high
turnover of inventory does not necessarily imply higher profits.

2. Debtors turnover ratio:

A concern may sell goods on cash as well as on credit is one of the


important elements of sales promotion. The value of sales can be increased by
following a liberal credit policy but, the effect of a liberal credit policy may result
in trying up substantial funds of a firm in the form of trade debtors. Trade debtors
are expected to be converted in to cash with in a short period. And are depends
upon the quality of its trade debtors. Two kinds of ratio can be computed to
evaluate the quality of debtors.

Debtor’s turnover ratio = Net credit sales / Average trade debtors

Observation of debtor turnover ratio:


Debtor’s velocity indicates the number of the debtors is turned over
during a year. Generally, the higher value of debtor’s turnover the more efficient is
the management of debtors / sales and less liquid debtors. But a precaution is
needed while interpreting a very high debtors turnover ratio because a very high
ratio may implies a firm in ability due to lack of resources to sell on credit there by
lacking sales and profits, this ratio should be compared with ratio of other firms
doing similar business and a trend may be also found to make a better
interpretation of the ratio.

3. Creditors turnover ratio:

A firm has to make credit purchases and incur short term liabilities. A
supplier of goods that is creditors is naturally interested in finding out how much
time the firm is likely to taken in repaying its trade creditors, the analysis for
creditors turnover ratio except that in place of trade debtors, the trade creditors are
taken as one of the components of the ratios.
Net credit purchases
Creditors turnover ratio = --------------------------
Average tr ade creditors

The trade creditors include sundry creditors and bills payables. If opening
and closing balance of creditors are not known, the balance of creditors given may
be taken to find out the ratio. The ratio indicates the velocity with which the
creditors are turned over in relation to purchase. Generally, higher the creditor’s
velocity better is or other wise lower the creditor’s velocity, less favorable are the
results.

4. Working capital turnover ratio:

Working capital of a concern is directly related to sales. The current


assets like debtors, bills receivable, cash, stock etc. changes with the increase or
decrease in sales.
Working capital = Current assets / Current liabilities
Working capital turnover ratio indicates the velocity of the utilization of
net working capital. This ratio indicates the number of times the working capital is
being used by a firm. A higher ratio indicates efficient utilization of working capital
and a low ratio indicates otherwise. A very high working capital turnover ratio is not
a good situation for any firm and hence care must be taken while interpreting the
ratio.

Working capital ratio = Cost of sales / Average working capital

Solvency ratios:-
The term solvency refers to the ability of a concern to meet its long
term obligations. The long term indebtness of a firm includes debenture holders
financial institutions providing medium and long term loans and other creditors
selling goods an installment basis. The long term creditors of a firm are primarily
interested in knowing the firm ability to pay regularity interest on long term
borrowings, repayment of the principal amount at the maturity and the security of
their loans. They are
1. Debt equity ratio
2. Proprietary ratio
3. Fixed assets ratio

1.Debt equity ratio:


Debt equity ratio also known as external internal equity ratio is
calculated to measure the relative claims of outsiders and the owners against the
firms assets. The ratio indicates the relationship between the external equities or the
outsider’s funds and the equities or the shareholders funds.

Debt equity ratio = Outsiders funds / Shareholders funds

The two basic components of the ratio are outsider’s funds that is external equities
and share holders funds that is internal equities. The outsiders funds includes all
debts and liabilities to outsiders, where long term or short term or whether in the
form of debentures bonds, mortgages are bills. The share holder’s funds consist of
equity share holder, performance share capital, capital reserves, revenue reserves and
reserves representing accumulated profits and surplus like reserve for contingencies,
sinking funds extra. The accumulated losses and differed expenses, if any should be
deducted from the total to find out shareholders funds.

Observation of debt equity ratio:


The debt equity ratio is calculated to measure the extent which debt
financing has been used in a business. The ratio indicates the proportionate claims of
owners and the outsiders against the firm’s assets. The purpose is to get an idea of
the cushion available to outsiders on the liquidation of the firm. As a general rule,
their should be an approximate mix of owners funds and outsiders funds in finance
of the firms asses. The owners want to do the business with the maximum of
outsider’s funds in order to take lesser risk of their investments and to increase their
earnings by paying a lower fixed rate of interest to outsiders. The outsiders on the
other hand, want that shareholders should invest and risk their share of proportionate
investment. The ratio of 1:1 may be usually considered to be satisfactory ratio
although there cannot be any rule of thumb or standard norms for all types of
business.

2.Proprietary ratio:

A variant to the debt equity ratio is the proprietary ratio which is also
known as equity ratio or share holders to total equity ratio or net worth to total assets
ratio. This ratio establishes the relationship between share holder funds to total
assets ratio. This ratio establishes the relationship between share holder funds to the
assets of the firm. The ratio of proprietor’s funds to total funds is an important ratio
for determining long term solvency of the firm, the components of this ratio are
share holder funds or proprietor’s funds and total assets. The share holder funds are
equity share capital, preference share capital, undistributed profits, reserves and
surplus, out of this amount, accumulated losses should be deducted. The total assets
on the other hand denote total resources of the concern.

Proprietary ratio or equity ratio = Shareholder’s funds / Total assets

Observation of equity ratio:


As equity ratio represents the relation ship of owner’s funds to total
assets, higher the ratio are the share of the share holders in the total capital of a
company. Better is the long term solvency position of the company. This ratio
indicates the extent to which the assets of the company can be lost without affecting
the interest of the creditors of the company.

3.Fixed assets ratio:


The ratio establishes the relationship between fixed assets and
shareholder’s funds.

Fixed assets ratio = Fixed assets / Shareholder’s funds * 100

The ratio indicates the extent to which share holders funds are sunk into the fixed
assets. Generally, the purchase of fixed assets should be financed by shareholders
equity including reserves, surplus and retained earnings. If the ratio is more than
100%, it implies that more the owners funds than fixed assets.

Profitability ratios:-
The primary objective of the business under taking is to earn profits.
Profit earning is considered essential for the survival of the business. A business
needs profits not only for its existence but also expansion and diversification. The
investor’s workers creditors want their remuneration security and they want to know
the profitability of the concern.
1. Gross profit ratio
2. Net profit ratio
3. Return on equity capital
4. Earning per share

1. Gross profit ratio:


The gross profit ratio measures the relationship of gross profit to net
sales and is represented as a percentage

Gross profit ratio = Gross profit * 100/Net sales

Gross profit = Net sales – Cost of goods sold

This ratio indicates the extent to which selling prices of goods per unit may decline
without resulting in losses on operations of a firm. It reflects the efficiency with
which a firm produces its products. Higher the ratio better is the result. A low ratio
generally indicates high cost of goods sold due to unfavorable purchase policies,
lesser sales, lower selling prices, excessive competition.

2. Net profit ratio:


This ratio indicates the efficiency of the measurement in
manufacturing, selling, administration and other activities of the firm. This measures
overall profitability of firm.

Net profit ratio = Net profit*100 /Net sales

This ratio also indicates the firm’s capacity to face adverse economic conditions
such as price competition, low demand etc., obviously, higher the ratio better the
profitability.

3. Return on equity capital:


In real sense ordinarily share holders are the real owners of the
company. They assume the highest risk in company. Preference share holders get a
fixed rate of dividend irrespective of quantum of profits of the company. The ratio of
dividend varies with the availability of profits in case of ordinary shares only. Thus,
ordinary share holders are more interested in the profitability of the company and
performance of that concern.

Return on equity capital = Net profit after tax-preference share dividend/equity


capital

4. Earning per share:


Earning per share is a small variation of return on equity capital and
calculated by dividing the net profit after the taxes and preference dividends by the
total number of equity shares.

Earning per share = Net profit after tax-preference dividend / number of equity
shares

COMPARITIVE ANALYSIS
In comparative analysis financial statements are those statements which
have been designed in a way so as to provide time perspective to the consideration
of various elements of financial position embodied in such statements.
In these statements figures for two or more periods are placed side by side to
facilitate comparison.
Both the Income statement and balance sheet can be prepared in the form of
comparative financial statements.

COMPARITIVE INCOME STATEMENT:-

The income statement discloses net profit or loss on account of


operations.
A comparative income statement will show the absolute figures for two (or) more
periods, The absolute from one period to another period and it desired the change in
terms of percentages.
Since the figures for two or more periods are shown side the reader can quickly as
certain whether sales have increased or decreased whether cost of sales has increased
or decreased etc,
Thus only a reading of data included in comparative statement will be helpful in
deriving meaningful of conclusions.

COMPARITIVE BALANCE SHEET:-

It is one two (or) more different data can be used for companies assets
and liabilities and finding out any increase or decrease in those items. Thus while in
a single balance sheet the emphasis is on present in the comparative balance sheet.
Such a balance sheet is very useful in studying the trends in an enterprise.

FORMAT OF COMPARITIVE INCOME STATEMENT

PARTICULARS PREVIOUS PRESENT ABSOLUE PERCENTAGE


YEAR YEAR CHANGE CHANGE
Net sales **** **** ***** ****
(-) cost of goods
Sold **** **** **** ****
= Gross profit
(A)
(-) Operating
expenses
Administration
expenses
Selling expenses
Total operating
expenses(B)

Operating
profit(A-B)

FORMAT OF COMPARATIVE BALANCE SHEET

PARTICULARS PREVIOUS PRESENT ABSOLUTE ABSOLUTE


YEAR YEAR CHANGE %
ASSETS

CURRENT
ASSETS

FIXED ASSETS

TOTAL
ASSETS

LIABILITIES

CURRENT
LIABILITIES

LONG TERM
LIABILITIES

TOTAL
LIABILITIES

Formula for calculation of absolute change & percentage change


Absolute change =
(current year –
previous year)
Founded 1935
Change in (%) = Headquarters Mumbai, India
Absolute change / Y. K. Hamied (CMD),
Previous year Key people
Chairman
amount
Industry Pharmaceuticals
▲ Rs. 37.6 billion (~939M
Revenue
USD) (2006)
Net income ▲ Rs. 9.1 billion (2006)
Employees over 7,000
Website www.cipla.com

Cipla, originally founded by Khwaja Abdul Hamied as The Chemical, Industrial &
Pharmaceutical Laboratories is a prominent Indian pharmaceutical company, best-
known outside its home country for producing low-cost anti-AIDS drugs for HIV-
positive patients in developing countries. Cipla makes drugs to treat cardiovascular
disease, arthritis, diabetes, weight control, depression and many other health
conditions, and its products are distributed in more than 180 countries worldwide.
Among the hundreds of generic medications it produces for international distribution
are atorvastatin, amlodipine, fluoxetine, venlafaxine hydrochloride and metformin.

Technology Services

Cipla offers services like consulting, commissioning, engineering, project appraisal,


quality control, know-how transfer, support, and plant supply.

Apart from its presence in the Indian market, Cipla also has an export market and
regularly exports to more than 150 countries in regions such as North America,
South American, Asia, Europe, Middle East, Australia, and Africa. For the year
ended 31 March, 2007 Cipla’s exports were worth approximately Rs. 17,500
million. Cipla is also considerably well-known for its technological innovation and
processes for which the company received know-how loyalties to the tune of Rs. 750
million during 2006-07[citation needed]. Cipla has been approved by regulatory bodies
such as:

• World Health Organization


• Food and Drug Administration (FDA), USA
• Therapeutic Goods Administration (TGA), Australia
• Pharmaceutical Inspection Convention (PIC), Germany
• National Institute of Pharmacy (NIP), Hungary

Cipla has recently launched i-Pill which is a single dose emergency contraceptive
and has acquired a great deal of popularity in a short span of time. Other latest
launches of Cipla include products such as Nova, Moxicip, Flomex, Fullform,
Montair LC, and Imicrit.

Cipla and the Fight against HIV/AIDS in the Developing World

Today (2007), Cipla is the world's largest manufacturer of antiretroviral drugs[citation


needed]
(ARVs) to fight HIV/AIDS, as measured by units produced and distributed
(multinational brand-name drugs are much more expensive, so in money terms Cipla
medicines are probably somewhere down the list). Roughly 40% of HIV/AIDS
patients undergoing antiretroviral therapy worldwide take Cipla drugs.

Indian law from 1972 has allowed no (end-product) patents on drugs, and provided
for compulsory licensing, Cipla was able to manufacture medicines which enjoy
patent monopoly in certain other countries (particularly those where large,
multinational pharmaceutical companies are based). By doing so, as well as by
making an executive decision not to make profits on AIDS medication, Cipla
reduced the cost of providing antiretrovirals to AIDS patients from $12,000 and
beyond (monopoly prices charged by international pharma conglomerates) down to
around $300 per year. Today they are able to do so for under $150 per patient per
year. While this sum remains out of reach for many millions of people in Third
World countries, government and charitable sources often are in a position to make
up the difference for destitute patients.

Cipla pioneered the (now-standard) treatment for AIDS consisting of a cocktail of


three anti-retroviral drugs. It developed a three-in-one tablet called Triomune
containing a fixed-dose combination (FDC) of three ARVs (Lamivudine, stavudine
and Nevirapine), something difficult elsewhere because the three patents were held
by different companies. Another popular fixed-dose combination is produced under
the name Duovir-N. This contains Lamivudine, Zidovudine and Nevirapine.
2007 AHF Campaign

In August 2007 Cipla was confronted by a US-based group known as AIDS


Healthcare Foundation (AHF) with a well-funded campaign of full-page ads in
various Indian newspapers suggesting Cipla was pricing an AIDS drug called
Viraday higher in India than in Africa.[2]

In response to AIDS Healthcare Foundation's claims Cipla issued a short statement


pointing out that the company had not sold a single pack of Viraday in Africa. It also
underlined that Cipla sells its other AIDS drugs to the Indian government at the
same prices it sells to Africa, and questioned AHF's agenda in singling out Cipla for
the well-funded attack in full-page newspaper ads.[3] According to AHF and news
reports, Cipla threatened a defamation lawsuit against the organization. No legal
action was taken by Cipla.

On August 21, 2007 the Indian Monopolies and Restrictive Trade Practices
Commission (MRTPC) announced that it would look into Cipla's pricing and claims
made by AHF.[3] The MRTPC did not issue any further statements on the matter
subsequently.

On September 1, 2007, The Economic Times of Delhi wrote that:

It has now emerged that Aids Healthcare Foundation (AHF), the US-based NGO
that accused Cipla of over pricing anti-AIDS drug, Viraday, in India is part funded
by American anti-AIDS drug maker Gilead and the NGO's treasurer is a senior
Gilead executive. This is largely the reason why foreign and Indian NGOs such as
Medicins Sans Frontieres (MSF), Delhi Network of Positive People (DNP+), Indian
Network of Positive People (INP+), Sahara and others refused to be part of AHF's
anti-Cipla campaign. Cipla is also the only Indian company opposing Gilead's patent
application for its blockbuster anti-HIV drug Viread in India. The hearing for the
patent case of Viread is due in October. ... Says a head of an NGO, who did not
participate in the anti-Cipla campaign: “There is a conflict of interest in the
campaign. AHF is funded by multinational pharma companies. A senior Gilead
executive is one of the directors of AHF and the campaign choose to target Cipla for
over pricing at a time when it is fighting Gilead's patent case in India. There is a
discomfort and many civil society groups decided to stay away from the campaign.”.

Antiflu

In December 2008, Cipla won a court case in India allowing it to manufacture a


cheaper generic version of Oseltamivir marketed by Hoffmann-La Roche (Roche)
under the trade name Tamiflu, called Antiflu. In May 2009, Cipla won approval
from the World Health Organization certifying that its drug Antiflu was as effective
as Tamiflu, and Antiflu is included in the World Health Organization list of
prequalified medicinal products.[4]

Cipla announced that Oseltamivir 75 mg capsules marketed as `Antiflu` by the


company has been included in the World Health Organization (WHO) list of
prequalified medicinal products (PMP).

Oseltamivir is indicated for use in the treatment of influenza A (H1N1) infection


commonly known as swine flu.

The company has a product range comprising antibiotics, anti-bacterials, anti-


asthmatics, anthelmintics, anti-ulcerants, oncology, corticosteroids, nutritional
supplements and cardiovascular drugs.

It is into anti-bacterial and anti-asthmatic segments and is the first player in Asia to
launch non-CFC metered dose inhaler.

History

Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The
fire of nationalism was kindled in him when he was 15 as he witnessed a wanton act
of colonial highhandedness. The fire was to blaze within him right through his life.

In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got
admission in Berlin University as a research student of "The Technology of Barium
Compounds". He earned his doctorate three years later.

In October 1927, during the long voyage from Europe to India, he drew up great
plans for the future. He wrote: "No modern industry could have been possible
without the help of such centres of research work where men are engaged in
compelling nature to yield her secrets to the ruthless search of an investigating
chemist." His plan found many supporters but no financiers. However, Dr Hamied
was determined to being "a small wheel, no matter how small, than be a cog in a big
wheel."

Cipla is born

In 1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which


came to be popularly known as Cipla. He gave the company all his patent and
proprietary formulas for several drugs and medicines, without charging any royalty.
On August 17, 1935, Cipla was registered as a public limited company with an
authorised capital of Rs 6 lakhs.
The search for suitable premises ended at 289, Bellasis Road (the present corporate
office) where a small bungalow with a few rooms was taken on lease for 20 years for
Rs 350 a month.

Cipla was officially opened on September 22, 1937 when the first products were
ready for the market. The Sunday Standard wrote: "The birth of Cipla which was
launched into the world by Dr K A Hamied will be a red letter day in the annals of
Bombay Industries. The first city in India can now boast of a concern, which will
supersede all existing firms in the magnitude of its operations. India has lagged
behind in the march of science but she is now awakening from her lethargy. The new
company has mapped out an ambitious programme and with intelligent direction and
skillful production bids fair to establish a great reputation in the East. "

Mahatma Gandhi visits Cipla

Mahatma Gandhi visits Cipla (July 4th 1939)

July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation, Mahatma
Gandhi, honoured the factory with a visit. He was "delighted to visit this Indian
enterprise", he noted later. From the time Cipla came to the aid of the nation gasping
for essential medicines during the Second World War, the company has been among
the leaders in the pharmaceutical industry in India

On October 31, 1939, the books showed an alltime high loss of Rs 67,935. That was
the last time the company ever recorded a deficit.

In 1942, Dr Hamied's blueprint for a technical industrial research institute was


accepted by the government and led to the birth of the Council of Scientific and
Industrial Research (CSIR), which is today the apex research body in the country.

In 1944, the company bought the premises at Bombay Central and decided to put up
a "first class modern pharmaceutical works and laboratory." It was also decided to
acquire land and buildings at Vikhroli. With severe import restrictions hampering
production, the company decided to commence manufacturing the basic chemicals
required for pharmaceuticals.

In 1946, Cipla's product for hypertension, Serpinoid , was exported to the American
Roland Corporation, to the tune of Rs 8 lakhs. Five years later, the company entered
into an agreement with a Swiss firm for manufacturing foromycene.
Dr Yusuf Hamied, the founder's son, returned with a doctorate in chemistry from
Cambridge and joined Cipla as an officer in charge of research and development in
1960.

In 1961, the Vikhroli factory started manufacturing diosgenin. This heralded the
manufacture of several steroids and hormones derived from diosgenin.

The founder passes away

The whole of Cipla was plunged into gloom on June 23, 1972 when Dr K A Hamied
passed away. The Free Press Journal mourned the death of a "true nationalist,
scientist and great soul…. The best homage we can pay to him is to contribute our
best in the cause of self-reliance and the prosperity of our country in our fields of
endeavour."

milestones
2000
Cipla became the first company, outside the USA and Europe to launch CFC-free
inhalers – ten years before the deadline to phase out use of CFC in medicinal
products.

2002
Four state-of-the-art manufacturing facilities set up in Goa in a record time of less
than twelve months.

2003

Launches TIOVA (Tiotropium bromide), a novel inhaled, long-acting


anticholinergic bronchodilator that is employed as a once-daily maintenance
treatment for patients with chronic obstructive pulmonary disease (COPD).

Commissioned second phase of manufacturing operations at Goa.

2005
Set-up state-of-the-art facility for manufacture of formulations at Baddi, Himachal
Pradesh.

2007
Set-up state-of-the-art facility for manufacture of formulations at Sikkim.
Board of Directors
Founder
Dr. K.A. Hamied
(1898-1972)

Chairman & Managing Director


Dr. Y.K. Hamied

Joint Managing Directors


Mr. M.K. Hamied
Mr. Amar Lulla

Non-Executive Directors
Mr. V.C. Kotwal
Dr. H.R. Manchanda
Mr. S.A.A. Pinto
Mr. M.R. Raghavan
Mr. Ramesh Shroff
Mr. Pankaj Patel

Code of Conduct

As required under revised Clause 49 of the Listing Agreement the following code of
conduct has been approved by the Board of Directors and is applicable to the
Directors and Senior Management of the Company.

1. Ethical conduct
All directors and senior management employees shall deal on behalf of the
Company with professionalism, honesty, integrity as well as high moral and
ethical standards. Such conduct shall be fair and transparent and be perceived to
be as such by third parties.

2. Conflict of interest
Any director or senior management employee of the Company shall not engage
in any business, relationship or activity, which might detrimentally conflict with
the interest of the Company

3. Transparency
All directors and senior management employees of the Company shall ensure that
their actions in the conduct of business are totally transparent except where the
needs of business security dictate otherwise. Such transparency shall be brought
about through appropriate policies, systems and processes

4. Legal compliance
All directors and senior management employees of the Company shall at all times
ensure compliance with all the relevant laws and regulations affecting operations
of the Company. They shall abreast of the affairs of the Company and be kept
informed of the Company's compliance with relevant laws, rules and regulations.
In the event that the implication of law is not clear, the course of action chosen
must be supported by eminent legal counsel whose opinion should be
documented

5. Rightful use of company’s assets


All the assets of the Company both tangible and intangible shall be employed for
the purpose of conducting the business for which they are duly authorized. None
of the assets of the Company should be misused or diverted for personal purpose

6. Cost consciousness
All the directors and senior management employees of the Company should
strive for optimum utilization of available resources. They shall exercise care to
ensure that costs are reasonable and there is no wastage. It shall be their duty to
avoid ostentation in Company expenditure.

7. Confidential information
All directors and senior management employees shall ensure that any confidential
information gained in their official capacity is not utilized for personal profit or
for the advantage of any other person. They shall not provide any information
either formally or informally to the press or to any other publicity media unless
specifically authorized to do so. They shall adhere to the provisions of SEBI
(Prohibition of Insider Trading) Regulations, 1992.

Technology Services
Consulting - preparation of product and material specifications evaluation of
existing production facilities to meet GMP definition of appropriate plant size
and technology.

Project appraisal - financial and economic evaluations feasibility studies.

Engineering - design of plant layout basic and detail engineering blue prints for
civil engineering works.

Plant supply - supply of plant equipment supervision of erection and start up.

Commissioning - overall works supervision supervision of erection and start up.

Quality control - Development of analytical method establishment of quality


control guidelines according to GMP quality control manuals.

Flavours & Fragrances

With its 70-year record of impeccable quality, Cipla is a trusted name in over 170
countries. Cipla's extensive range of pharmaceutical and personal care products
have brought health and happiness to millions of people the world over –
combining technology and quality with affordability.

Cipla now provides a range of innovative Flavours, which bring a unique taste
sensation to foods and beverages, and fragrances that deliver the right olfactive
signal.

Cipla Flavours are used widely across the food and beverages and pharmaceutical
industry from fruit juices and medicinal liquids to baked goods and oral hygiene
products.
Cipla Fragrances have a variety of applications ranging from personal care
products to laundry detergents and room fresheners.

Global Presence

Exports for the financial year ended March 31, 2009 amounted to more than Rs.
27,500 million. Cipla exports raw materials, intermediates, prescription drugs, OTC
products and veterinary products. Cipla also offers technology for products and
processes. Technical know-how/fees received during the year 2008-09 amounted to
about Rs. 2200 million .
Cipla's manufacturing facilities have been approved by the following regulatory
authorities:
Food and Drug Administration (FDA), USA
Medicines and Healthcare products Regulatory Agency (MHRA), UK
Therapeutic Goods Administration (TGA), Australia
Medicines Control Council (MCC), South Africa
National Institute of Pharmacy (NIP), Hungary
Pharamaceutical Inspection Convention (PIC), Germany
World Health Organisation (WHO) Department of Health, Canada
State Institute for the Control of Drugs, Slovak Republic ANVISA, Brazil

Vesigard: Selective Effective Distinctive

Overactive bladder is a symptom-defined condition characterized by urinary


urgency, with or without urgency incontinence, usually with urinary frequency and
nocturia. Antimuscarinics are recommended as 1 st line therapy for OAB.

Antimuscarinics act by competitively blocking musacrinic receptors. There are 5


types of receptors M 1 ,M 2 ,M 3 ,M 4 and M 5 . M 3 receptors are responsible for
detrusor muscle contractions.

In vitro studies using human recombinant muscarinic receptor subtypes show that
darifenacin has greater affinity for the M 3 receptor than for the other known
muscarinic receptors (9- and 12-fold greater affinity for M 3 compared to M 1 and
M 5 , respectively, and 59-fold greater affinity for M 3 compared to both M 2 and M
4 ). Due to the M 3 selectivity, darifenacin is not associated with cognitive adverse
events. This is important specially while selecting antimuscarinics for the treatment
of older patients.

Composition
Vesigard 7.5 Extended-Release Tablets
Each tablet contains:
Darifenacin hydrobromide….. 7.5 mg
Vesigard 15 Extended-Release Tablets Each tablet contains:
Darifenacin hydrobromide….. 15 mg

Indications
Vesigard extended-release tablets are indicated for the treatment of overactive
bladder with symptoms of urge urinary incontinence, urgency and frequency

Dosage and Administration


The recommended starting dose of Vesigard extended-release tablets is 7.5 mg once
daily. Based upon individual response, the dose may be increased to 15 mg once
daily, as early as 2 weeks after starting therapy.

Vesigard extended-release tablets should be taken once daily along with any liquid.
They may be taken with or without food, and should be swallowed whole and not
chewed, divided or crushed.

Available as:
Vesigard – 7.5
Strip of 10 tablets

Vesigard – 15
Strip of 10 tablets

Highlights:

• Highest M 3 selectivity
• Established long term efficacy and safety over 2yrs
• Dose titration improves compliance by giving flexibility of dosing
• Improves Quality of Life
• Established Cardiovascular and CNS safety

Preferred in elderly patients with OAB

Combace: Worlds First Preservative Free Ace Combination


Ocular inflammation and infection often coexist and the clinician is always in search
of a medication, which offers efficacy, tolerance and convenience. Combination of
antibiotic-steroid exerts efficacy in resolving both infection and inflammation.
Steroids are to be used preserve normal structure of involved tissues while antibiotic
component reduces risk of infection. Thus a combination of corticosteroid and
antibacterial strikes a favorable balance.

Combace is a fixed dose combination of gold standard steroid (Prednisolone acetate


l) and ace bactericidal (Moxifloxacin), which is preservative free.

Generally most of the commercially available ophthalmic formulations have


benzalkonium chloride ( BAK ) as the preservative which reduces corneal epithelial
cell integrity, compromises the epithelial barrier, impairs and delays corneal healing,
causes a loss of goblet cells , reduces tear function and decreases Tear Film Break
Up Time (TBUT). In short it its cytotoxic and ultimately chronic exposure leads
to dry eyes.

Advantages of being preservative free:

• Can be used efficiently in individuals hypersensitive to BAK


• For patients prone to dry eye, blepharitis or other ocular surface
disorders.
• Maintains health and integrity of the ocular surface
• Effective , soothing and well tolerated
• Absence of BAK makes a significant difference for preference as
prophylaxis for cataract or refractive surgery.

Prednisolone acetate: Gold standard steroid

It is the most potent topical ophthalmic corticosteroids with highest anti-


inflammatory activity compared to other ophthalmic steroids.

It has highest aqueous humor concentration (of 669.9 ng/ml) compared to other
ophthalmic steroids with a clinical cure rate of 68%, treating external ocular
inflammatory conditions of the eye.

Moxifloxacin: First USFDA approved BAK free topical ophthalmic quinolone.

Moxifloxacin has

• Faster kill speed thus ensures complete eradication of bacteria


• Broad Spectrum activity : Improves Gram +ve activity, maintained Gram –ve
activity
• Activity against non tuberculous Mycobacteria, Chlamydia trachomatis.
• Good solubility at physiological pH.
• Higher the solubility, higher the concentration, higher the penetration in
stroma and anterior chamber.

Absence of BAK makes a significant difference for preferring an antibiotic as


prophylaxis for cataract or refractive surgery

Indications

Combace ophthalmic suspension is indicated for steroid-responsive inflammatory


ocular conditions for which a corticosteroid is indicated and where bacterial
infection or a risk of bacterial ocular infection exists.

Ocular steroids are indicated in inflammatory conditions of the palpebral and bulbar
conjunctiva, cornea and anterior segment of the globe where the inherent risk of
steroid use in certain infective conjunctivitis is accepted to obtain a diminution in
edema and inflammation. They are also indicated in chronic anterior uveitis and
corneal injury from chemical radiation, or thermal burns, or penetration of foreign
bodies. The use of a combination drug with an anti-infective component is indicated
where the risk of infection is high or where there is an expectation that potentially
dangerous numbers of bacteria will be present in the eye.

The combination can also be used for post-operative inflammation and any other
ocular inflammation associated with infection.

Dosage and Administration

Shake well before use

One or two drops of Combace instilled into the conjunctival sac(s), every 4 to 6
hours. During the initial 24 to 48 hours, the dosage may be increased to 1 or 2 drops
every two hours.

Frequency must be decreased gradually or warranted by improvement in clinical


signs.

Care should be taken not to discontinue the therapy prematurely

Combace Highlights:

• World's first Preservative free antibacterial-steroid combination


• Fast acting and long lasting
• No Corneal Toxicity, since BAK is absent
• Can be used effectively and safely in patients with Ocular Surface
disorders
• Safe and well tolerated, hence increase in compliance may be seen

Currently the use of ß-lactamase inhibitors is the most successful strategy to restore
the efficacy of ß-lactam antibiotics. Accumulating experience with ß-lactam/ß-
lactamase inhibitor combinations has resulted in a better appreciation of their role in
clinical practice. Importantly, they are indicated for the empirical treatment of a
variety of infections, particularly against mixed infections involving anaerobes and
against certain multi-resistant pathogens responsible for nosocomial infections.
When compared with more conventional regimens, ß-lactam/ß-lactamase inhibitor
combinations are relatively well tolerated and are at least as efficacious if not
superior. The available oral formulations also provide convenient outpatient or step-
down therapy against susceptible pathogens.

The formulation of cefixime and clavulanic acid in CLACENT is one of example of


ß-lactam/ß-lactamase inhibitor combinations product.

Cefixime, is an orally active third generation cephalosporin (beta lactam antibiotic)


with in vitro antibacterial activity against most important lower respiratory
pathogen. The drug is active against Haemophilus influenzae, Moraxella catarrhalis
, penicillin susceptible Streptococcus pneumoniae, Streptococcus pyogenes and
many Enterobacteriaceae.

Cefixime is distinguished by its 3-hour elimination half life which permit twice daily
or in many instances once daily administration.

Several trial have established the clinical efficacy of the drug in patients with lower
respiratory tract infection ( LRTI ).In comparative studies cefixime had similar
efficacy to amoxicillin plus clavulanic acid ,cefaclor, cefalexin, cefuroxime axetil
and clarithromycin. Cefixime also have a role as the oral component of intravenous
to oral switch therapy.

In common with cephalosporins such as cefotaxime and beta lactam agent like
latamoxef cefixime is stable to hydrolysis by a wider range of beta lactamases than
cephalexin, cephradine and cefadroxil and beta lactamase stability was similar to
that of ceftizoxime.

However, cefixime was found to be ineffective against bacteria which produces


ESBL enzyme and resistance is seen in such types of bacteria.

Clavulanic acid was the first clinically useful ß-lactamase inhibitor to be described
in the literature, and is an irreversible ‘suicide' inhibitor of intracellular and
extracellular ß-lactamases, demonstrating concentration-dependent and competitive
inhibition. It has a high affinity for the class A ß-lactamases. This wide range of ß-
lactamases, which includes the plasmid-mediated TEM and SHV enzymes, is found
frequently in members of the Enterobacteriaceae, Haemophilus influenzae and
Neisseria gonorrhoeae . The chromosomally mediated ß-lactamases of Klebsiella
pneumoniae , Proteus mirabilis , Proteus vulgaris , Bacteroides fragilis and
Moraxella catarrhalis are also inhibited, as are the extended-spectrum ß-lactamases.
The frequency of ß-lactamase mediated resistance has continued to rise over the
years, but the majority of clinically significant ß-lactamases are inhibited by
clavulanate.

Clavulanate is a highly effective inhibitor of extended-spectrum ß-lactamases


(ESBLs) Oxyimino-cephalosporin–clavulanate combinations are active in vitro
against most ESBL-producing Escherichia coli and Klebsiella spp. isolates at ≤ 1–
2 mg/L .

Clavulanic acid penetrates into periplasm of pathogens rapidly so as to intercept the,


ß -lactamase before all labile antibiotics has been destroyed. Also, clavulanic acid
was shown to be synergistic with a number of penicillins and cephalosporins that are
readily hydrolyzed by plasmid-mediated ß-lactamases.

Excellent protection was afforded to beta lactam antibiotic when clavulanic acid was
added to gram-negative, gram-positive, and anaerobic organisms initially resistant to
this labile antibiotic.

The extended spectrum ß-lactamases, for example, despite hydrolyzing penicillins,


all generations of cephalosporins, and in some cases monobactams, remain
susceptible to ß-lactamase inhibitors, so where pathogens that produce these
enzymes are a particular problem, ß-lactam/ ß-lactamase inhibitor combinations may
be extremely useful.

Thus CLACENT offers:

1. Greater activity against both gram positive & gram negative pathogens
including high beta lactamase enzyme producers
2. Excellent protection to beta lactam antibiotics from both intracellular &
extracellular beta lactamase enzymes
3. Synergistic effect as result of complementary binding to penicillin binding
proteins (PBPs)
4. High Beta lactamase stability with minimal resistances
5. Favorable pharmacokinetic properties with good distribution into most of the
respiratory tissues.
6. Well tolerated safety profile
7. Enhanced patient compliance as once to twice daily dosage adequate to treat
infection

INDICATIONS
CLACENT is indicated for the treatment of:
Respiratory tract infections – Bronchitis, Bronchiectasis, Pneumonia
ENT Infections – Chronic Maxillary Sinusitis, Chronic Otitis Media
Urinary tract infections – Acute uncomplicated and complicated urinary tract
infection

DOSAGE AND METHOD OF ADMINISTRATION


Adults and Children over 10 Years : One tablet twice daily

8. The usual course of treatment is 7 days. This may be continued for up to 14


days if required.
Comparative Balance sheet of years 2004 and
2005
Particulars Previous Current Absolute % change
year(04) year(05) change

Current 1072 1348 276 25.74


Assets

Fixed Assets 402 400 (02) 25.37

Total Assets 1474 1748 274 18.58

Current 441 583 142 32.19


Liabilities

Long term 1033 1165 132 12.77


debts

Total 1474 1748 274 18.58


Liabilities
Comparative Balance sheet of years 2005 and
2006

Particulars Previous Current Absolute % change


year(05) year(06) change

Current 1348 1877 529 39.24


Assets

Fixed Assets 400 575 175 43.75

Total Assets 1748 2452 704 40.27

Current 583 733 150 25.72


Liabilities

Long term 1165 1719 554 47.53


debts

Total 1748 2452 704 40.27


Liabilities
Comparative Balance sheet of years 2006 and
2007

Particulars Previous Current Absolute % change


year(06) year(07) change

Current 1877 2063 186 9.09


Assets

Fixed Assets 575 1296 721 12.43

Total Assets 2452 3359 907 36.99

Current 733 643 (90) 12.27


Liabilities

Long term 1719 2716 997 57.99


debts

Total 2452 3359 907 36.99


Liabilities
Comparative Balance sheet of years 2007 and
2008

Particulars Previous Current Absolute % change


year(07) year(08) change

Current 2063 2593 536 25.98


Assets

Fixed Assets 1296 1743 447 34.49

Total Assets 3359 4336 977 29.08

Current 643 980 337 52.41


Liabilities

Long term 2716 3356 640 23.56


debts

Total 3359 4336 977 29.08


Liabilities

Interpretation

The current assets of the company had increased from1072.17 to 2593.5 from
2004 to 2008, and the current liabilities had increased from 441.30 to 980.00 and
long term debts have also increased which indicates long term plan expansion,
and company is also able to meet its liquidity position.

Findings and conclusion

Suggestions

Annexure

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