A

PROJECT REPORT
ON
‘‘WEIGHTAGE AVERAGE COST OF CAPITAL AND
RETURN ON INVESTMENT’’FOR

WOCKHARDT LIMITED, ANKLESHWAR, GUJARAT

Submitted to

PARUL INSTITUTE OF MANAGEMENT AND RESEARCH

Affiliated to

Gujarat Technological University

In partial fulfillment of the Requirement of the award for the degree of
Master of Business Administration

UNDER THE GUIDANCE OF

Faculty Guide
DIVYANG JOSHI
Submitted by
PARTH SHAH
[Batch: 2014-2015]
Enrollment No.:- 137110592299
MBA (SEMESTER – III)

MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
2014-2015
 PREFACE

Management is an essential ingredient in every organized endeavour. Successful

management of complex organization employing sophisticated technology & skilled
personnel can’t be possible through intuition or trial and error.

On extreme of the competitive environment the higher degree of excellence in

management is not a unilateral phenomenon, indeed it is the deepest touch to sense
the fundamental of the management with the stewardship, however the area of
studying of Human senses & behaviours is not a meadow, there is lot of tough way
but by using soft sentiments it is somehow easy to assess the same to understand
their vision & how are they committed.

Among various interesting things concerned with enchanting the understanding of

MBA student, two month summer internship training is very essential to get practical
exposure to the weaving water of industry.

I am very thankful to the Executive of Wockhardt ltd. for their kind co-operation and
support, without which it was not possible to complete to complete this summer
internship training and prepare report in smooth manner.

Place:

Date:
 ACKNOWLEDGEMENT

I am highly indebted to Mr. IRFAN A. PATEL(Senior Manager) for associating me in This

project and giving me an opportunity to undertake training in this esteemed organization.

I am immensely thankful to my project guide (Divyang Joshi). For showing me right

directions, guidance & suggestions to complete my project.

I would like to express my profound gratitude and sincere thanks to Mr. Ritesh Dhir
(Manager) WOCKHARDT ANKLESHWER for providing me with relevant information and
also by giving me his full cooperation in completing my project successfully.

Lastly, I am also obliged to all the staff members of WOCKHARDT LTD. Without their
contribution this report could not have in present.

PARTH SHAH
 DECLARATION

I hereby declare that the report on “Weighted Average Cost of Capital and Return
on Investment” and project work entitled at WOCKHARDT LTD. is a result of my
own work and my indebtedness to other work publication, if any have been duly
acknowledged.

I also declare that this project report has not been submitted previously to any other
university or institute for the award of any degree.

PLACE: PARTH SHAH

DATE: M.B.A (SEM-III)

 TABLE OF CONTENTS

SR.NO. PARTICULARS PAGE NOS.

PREFACE
ACKNOLEDGEMENT
DECLARATION
PART – I : GENERAL INFORMATION
1. Overview of the Industry
2. Overview of the Company
3. Overview of the Functional Departments

 Finance Department
 Marketing Department
 Production Department
 Human Resource Department

PART – II : PRIMARY STUDY

4. Introduction of the study

 4.1 Literature Review

 4.2 Background of the study
 4.3 Formula
5. Research Methodology
6. Data Analysis & Interpretation
7. Findings
8. Suggestions
9. Recommendation
 Conclusion
 Bibliography
 Annexure
 
 
 
OVERVIEW
OF THE
INDUSTRY
 INDUSTRY OVERVIEW (GLOBAL):
The global pharmaceutical industry revenue is forecasted to reach an estimated
$1,226.0 billion by 2018, with good growth over the next five years (2013-2018). The
industry is expected to register growth led by aging population, changing lifestyles,
hectic daily activities, unhealthy eating habits, increasing incidence of chronic
diseases across the entire global population providing growth opportunities for the
industry players.

Lucintel, a leading global management consulting and market research firm, has
conducted a competitive analysis of the industry and presents its findings in “Global
Pharmaceutical Industry 2013-2018: Trend, Profit, and Forecast Analysis.” The
industry is engaged in discovery, development, manufacture, and marketing of
prescription drugs. Industry products include ethical drugs and consumer healthcare
but animal healthcare drugs are not included.

The global pharmaceutical market faces major challenge from increasing investment
and strict regulation. Changing lifestyles and the fast socio-demographic shift due to
urbanization in both developed and growth markets globally are expected drive the
demand. The ability to create new technology and innovative drugs is a key driver for
success in this market.

North America is projected to lead the pharmaceutical industry. Vaccine industry is

expected to record the highest growth during the forecast period. ROW industry is
expected to witness the highest growth during 2013-2018. Government initiatives in
Brazil to encourage drugs industries by providing free pricing policies and special
financial investment options will attract the industry players. APAC holds good
growth potential for the future.

This study provides an overview of the global pharmaceutical industry by tracking 13

market segments of that industry in four geographic regions. Thus, a total of 52
segments of the global pharmaceutical industry are tracked. The report studies
manufacturers of bone, respiratory, immunology and dermatology, cardiovascular,
diabetes & obesity, urinary/kidney diseases, gastrointestinal, neurosciences,
infectious diseases, ophthalmology, oncology, women’s health/ endocrine, vaccines,
consumer health/OTC, and others providing a five-year (2007-2012) annual trend
analysis that highlights market size, profit and cost structure for NA, Europe, APAC,
and ROW. The report also provides a forecast, addressing market opportunities for
next five years (2013-2018) for each of these regions.

This comprehensive guide from Lucintel provides readers with valuable information
and the tools needed to successfully drive critical business decisions with a thorough
understanding of the market’s potential. This report will save Lucintel clients
hundreds of hours in personal research time on a global market and it offers
significant benefits in expanding business opportunities throughout the global
pharmaceutical industry analysis. In a fast-paced ever-changing world, business
leaders need every advantage available to them in a timely manner to drive change
in the market and to stay ahead of their competition. This report provides business
leaders with a keen advantage in this regard by making them aware of emerging
trends and demand requirements on an annual basis.

INDUSTRY OVERVIEW (IN INDIA):

India is among the top five emerging pharma markets and has grown at an estimated
compound annual growth rate (CAGR) of 13 per cent during the period FY 2009–
2013. The Indian pharmaceutical market is poised to grow to US$ 55 billion by 2020
from the 2009 levels of US$ 12.6 billion, according to the report titled ‘India Pharma
2020’ by McKinsey & Co.

A new cluster of countries is contributing to the growth of the pharma industry,

resulting in a robust jump in exports of drugs. The country’s pharma industry
accounts for about 1.4 per cent of the global pharma industry in value terms and 10
per cent in volume terms. Both domestic and export-led demand contributed towards
the robust performance of the sector.

An increase in insurance coverage, an ageing population, rising income, greater

awareness of personal health and hygiene, easy access to high-quality healthcare
facilities and favourable government initiatives are some of the important factors
expected to drive the pharma industry in India. The Government of India has
unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end-to-end
drug manufacturing.

Market Size
On improved utilisation of manufacturing facilities, the domestic pharmaceutical
market is likely to see high revenue growth and profit margins. Pharmaceutical sales
in India are expected to grow by 14.4 per cent to US$ 27 billion in 2016 from US$
22.6 billion in 2012, according to a report by Deloitte called ‘2014 Global Life
Sciences Outlook’.
India’s pharmaceutical exports stood at US$ 14.84 billion in FY 2013–14. The United
States (US) is the country’s biggest market for pharma exports accounting for about
25 per cent, followed by the United Kingdom (UK). “India has been able to make its
name as a quality supplier of affordable medicines across the globe. We are
expecting around 12 per cent growth this fiscal (2014–15),” said Mr P V Appaji,
Executive Director, Pharmaceutical Export Promotion Council of India (Pharmexcil).
Pharma exports from India will be more than the size of the domestic sales by FY
2015, according to a report by India Ratings & Research. The country provides
generic medicines to almost 200 countries. It is responsible for about 40 per cent of
the generic and over-the-counter drugs consumed in the US. Indian generics market
is expected to grow to US$ 26.1 billion by 2016 from US$ 11.3 billion in 2011.
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API IS A LARGEST SEGMENT OF THE INDIAN PHARMACEUTICALS
INDUSTRY:
Revenue of Indian pharmaceutical industry

The Indian pharmaceuticals market is expected to grow at a CAGR of 12.1 per cent
to reach US$ 45 billion in 2020.

Revenue share of Indian pharmaceutical sub-segments

With 72 per cent of market share (in terms of revenues), generic drugs form the
largest segment of the Indian pharmaceutical sector.
Export data of Indian pharma industry

In terms of value, pharmaceutical products exports have increased at a CAGR of

26.1 per cent to US$ 10.1 billion during FY06–13.

Indian pharmaceutical market segments by value

Anti-infective drugs command the largest share (17.8 per cent) in the Indian pharma
market.
INDIA IS FOURTH LARGEST PLAYER IN ASIA-PACIFIC BY VALUE

Market share by value in Asia Pacific

(2013)

13.50%
Japan
China
5.70%
South Korea
6.40% India
48.80% Rest of Asia Pacific

25.50%

With 5.7 per cent of market share, India ranks fourth in terms of total market share in
Asia-Pacific
In terms of Pharmaceutical Risk/Reward ratings for 4Q13, India stood 9th in Asia
Pacific
 INDUSTRY OVERVIEW (IN GUJARAT):

Gujarat - Favorite investment destination of global pharma majors!

Global pharma companies are looking at Gujarat as the potential hub for
manufacturing in the country. 

 After positioning Gujarat as the potential automobile hub in the country, the global
pharma giants’ have lined up expansion plans in the state that may well make it a
more prominent pharmaceutical manufacturing hub in the country. Going by the
reported figures, Gujarat-based pharma companies currently contribute 40 per cent
share to India's total pharma production and over 3,500 manufacturing units are
engaged in manufacturing of Allopathic, Ayurvedic, Homeopathic drugs & Cosmetics
in the state. And if future plans for pharma companies are something to vouch for,
the contribution will only go up in the coming years.

 Just recently, Israel’s Teva Pharmaceutical Industries announced that it will enter
India through a joint venture (JV) with US-based Proctor & Gamble (P&G). It may be
noted here that the JV will set up its first manufacturing facility at Sanand, Gujarat
with an initial investment of Rs 250 crore ($44.67 million). In addition, US- based
generic pharma manufacturer Amneal Pharmaceuticals has set up a formulations
unit and research and development centre near Changodar and plans to start
operations out of its facility.

 Names like the New Jersey based Apicore LLC and Singapore-headquartered
Biosensors International have also expressed their plans to set up base in the state.
It is expected that many of these companies will finalise their plans by the 2013
Vibrant Gujarat Summit. So far, 112 memorandum of understanding (MoUs) worth
Rs 12,751 crore (US $2.2 billion) have been signed since the first Vibrant Gujarat
summit in 2003.

 There is no doubt over the fact that the investor-friendly policies of the Narendra
Modi-led Gujarat government are one of the major factors in attracting these global
names to the state. And keeping in mind the future plans of these global pharma
giants, the state will only increase its total contribution to the pharmaceutical industry
in times to come.
 
 
  
OVERVIEW
OF THE
COMPANY
INTRODUCTION  

Wockhardt is an integrated health care group in India with active presence in

segments like pharmaceutical Dosage forms, APIs, Biotechnology, Nutrition products
and Hospitals.

Wockhardt group is firmly backed by its strong R&D support in Pharmaceuticals,

Biotechnology and NCE’s.

The company has its Headquarters in India and has 13 manufacturing plants located
in India, UK, Ireland, France and USA employing more than 9000 people.

Wockhardt has a global presence which covers more than 90 countries.

 CHAIRMAN OF ORGANIZATION

Wockhardt under Leadership of Mr. Habil Khorakiwala (Chairman)

Mr. Habil Khorakiwala, the Chairman of Wockhardt Limited, founded the company
in the early 1960s. Under his dynamic leadership, Wockhardt has emerged as a
leading biotechnology and pharmaceutical company, driven by research and global
strategies. Today, Wockhardt has an annual turnover of US$ 650 Million and a
market capitalization of over $ 1Billion. Mr. Habil Khorakiwala leads a team of
9000 employees based in India, UK, Ireland, Germany, USA, France and in
emerging markets.

MANAGEMENT STYLE

Mr. Khorakiwala advocates a customer-centric approach that has filtered down to

every decision and action in Wockhardt. His signature style is much evident in the
management processes at Wockhardt an open culture, participative management
practices, innovation, continuous improvement, speedy response, empowerment of
individuals and enjoyment of one’s job and contribution to the community - all
hallmarks of Wockhardt's culture.

ACCCOLADES RECEIVED

 Elected as the FICCI president in Feb 2007.

 Earns & Young Entrepreneur of the Year Award in Healthcare & Life
Sciences (Year 2004).
 Lifetime Achievement Award by the Indian Analytical Instruments
Association (ANACON) for his ‘Contributions in Research
 Lifetime Achievement Award by the Indian Analytical Instruments
Association (ANACON) for his ‘Contributions in Research
 Shiromani Vikas Award for his ‘Outstanding and Inspiring Contribution
towards National Development’ in 1992, at the hands of Mother Teresa.
 BOARD OF DIRECTOR :-
 MANAGEMENT TEAM

 Habil Khorakiwala (Chairman)

 Rajiv Gandhi (Director-Corporate finance and Information)
 Dr. Murtaza H Khorakiwala (Executive Director)
 Sirjivan Singh (Managing Director-Wockhardt UK)
 Mr. Sunil Khera (President Domestic and International)
 Frederic champavere (President Megme Laboratories)
 Huzaifa H Khorakiwala (Executive Director)
 Sanjiv Mehta (President Coporate Supply Chain)
 Manish Gupta (Managing Director-Pinewood Laboratories)
 Kurt Orlofski (President,USA)
 Dr. Yatendra Kumar (President-Pharma Research and Regulatory Affairs)
 Abbas Master (President-Projects)

CURRENT EMPLOYEES IN WOCKHARDT ANKLESHWAR:-

 Mr. S. Suresh - AVP – Manufacturing.

 Mr. Ayaz Ahmed – GM - Production – BD.
 Mr. Hiren S.Shah – DGM – Production – Cephalosporin
 Mr. Suman kumar Baluni – GM - Quality Assurance
 Mr. Ashwini Kumar Agrawal – DGM - Engineering Services
 Dr. Digant D. Chayya - Sr.Manager – HR
 Mr. Manoj Kumar Agrawal - Sr. Manager – Regulatory affairs
 Mr. Subodh Kumar - Sr. Manager – EHS
 Mr. Pankaj Raval - Manager - Finance
 ORGANIZATION STRUCTURE

AVP-Operations
Sr. Manager - DRA
Mr. Ayaz Ahmed GM –
Mr. M Agrawal
  Mr. S. K
 
 

Sr. Manager-HR DGM-Engineering DGM – Cephal Senior Manager–

Prodution
Mr. Digant Mr. Janesh PD Lab
Chhaya Upadhyay Mr. Hiren S Shah
Mr. PLN Sharma
     
 

Chairman
Mr. Habil Khorakiwala

Managing Director President – R&

Dr. Murtuza Khorakiwala Mr. Yatendra Kum

 
 

Sr. VP- Sr. VP – Global VP-Corpor

Scientific
Global manufacturing QA
& Reg. Affairs
Mr. GLOBLE
Raju ORGANIZATION Mr. Pallab
Mr. Pravir Choubey
Krishnaswamy
 
 
 

Sr. Manager - EHS Manager - Manager - QA Asst Mana

Finance
Mr. Subodh Mr. R Ramesh Mr. Sali
Kumar Mr. P Raval
   
   
LOCATIONS IN INDIA
WOCKHARDT GROUP COMPANY

1. Wockhardt ltd.
2. Carol info service ltd. [wockhardt life sciences ltd.]
3. Wockhardt hospital ltd.

 VISION

“To be the most admired healthcare group from India.”

 CORPORATE MISSION

“Pursuit of growth with excellence in the field of pharmaceuticals

and healthcare.”

Profitability Through
1. Quality of products and services.
2. Increasing investment in R D.
3. Competent scientific and managerial manpower.

BUSINESS PHILOSOPHY

“Creating value by understanding and communicating with our customers

and business partners”
 COMPANY AT A GLANCE:-

NAME OF THE UNIT:-

“WOCKHARDT LIMITED”

REGISTERED ADDRESS:-
WOCKHARDT TOWERS,
BANDRA-KURLA COMPLEX,
BANDRA EAST,
MUMBAI: - 400 051,
INDIA.
PHONE: - +91 22 2653 4444

TYPES OF ORGANISATION:-

Public Limited Company

LISTING ON STOCK EXCHANGES:-

A) Equity Shares : 1. Bombay Stock Exchange Limited (BSE)

2. National Stock Exchange of India Limited (NSE)

B) Global Depository Receipts (GDRs):

Luxembourg Stock Exchange

STOCK CODES:-

(a) Stock code

Bombay Stock Exchange Limited (BSE) : 532300

National Stock Exchange of India Limited (NSE) : WOCKPHARMA

(b) Corporate Identity Number (CIN) :

 L24230MH1999PLC120720

SCALE OF ORGANISATION:-

Large Scale Organization

VARIOUS APPROVAL:-

 US-FDA (United States Food and Drug Administration )

 INDIA-FDA (API Mfg.)
 WHO (API Mfg.)
 ISO 9001:2000 (API Mfg.)
 IDP CHINA (API Mfg.)
 CEP Certification From EDQM
 ANDA approval From US-FDA

AUDITS BY REGULATORY AGENCIES AND CUSTOMERS:-

 MHRA-UK(United Kingdom Medicines and Healthcare Product

Regulatory A service)
 FDA-US (United States Food and Drug Administration )
 ISO
 FDA-INDIA
 IVAX, SIGNFRIED, PERRIGO
 SWOT ANALYSIS

Strengths
 Experience in handling large volume production

 Dedicated & multi purpose manufacturing plants

 US RDA approved facility

 Experience in handing handling hazardous unit process

 Harmonious IR

Weakness

 High Overheads

 Inadequate solvent Recovery system

 Layout constraints of existing plants for shortage of WIP material, Raw

material in production department

 Inadequate facility to process new products

 BD – 1 odd facility, structural weak. Needs strengthening

 Opportunities

 Export potentials for regulated & non regulated market

 Scope for manufacturing of additional products for AMDA

 Initiative of MPP plant

 Solvent – Recovery unit

 Further enhancement of technical competency

 Creation of space for storing WIP material

 Implementation of SAP system

Threats

 Reduction of bulk drug prices

 Increase in our heads due to facility getting old & needs higher maintenance
 INTRODUCTION:-
Financial management is concern mainly with such a matter as how business

 
co- operation raises its finance and how it makes use of it.

 
In the modern business the finance is the blood of the business economy.
One can not image business activity. The finance function is equally important
 
for profit or non- profit organization. Therefore the financial management has
been assigned the short term and long term financial needs of the firm.
FINANCE
DEPARTMENT
 ORGANISATION STRUCTURE:-

 
Organization of finance department means the decision and clarification of
various functions which are performed by financial department.

The functions of finance manager involves the planning, raising the funds,
efficient allocation of resources and control the funds. And the responsibility of
finance manager are spread through out the organization in the sense that
whole finance department.

In Wockhardt Limited the organization of finance department is done

according to the nature & size of business. In Wockhardt Limited all financial
decision which is taken by finance manager Mr. P.V. Raval is effective.
The organization structure of finance department is as under…

Assistant manager
Mr. S.M. Kapadia

Senior Executive
Mr. H.H. Shah
 Financial manager
Clerk
Mr. P.V. Raval

 FUNCTION OF FINANCE DEPARTMENT:-

 ACCOUNTING FUNCTION:-
Sales Book

Bank Books

General Books

 AUDITING FUNCTION:-
Internal Audit

Statutory Audit

Cost Audit

Tax Audit

 COSTING FUNCTION:-
Standard Consumption

Standard Electricity

Standard Rent

Standard Labour Charges

 TAXATION:-
Income Tax

Corporate Tax

Sales Tax

Salary Tax
 DIVIDEND POLICY:-
The declaration and payment of dividends on Wockhardt Limited Equity
Shares will be recommended by Board of Directors and approved by
Shareholders, at their discretion, and will depend on a number of factors,
including but not limited to companies profits, cash flows, capital expenditure,
capital requirements and overall financial condition. So the Wockhardt Limited
has no stated dividend policy.
 INTRODUCTION:-

 
Marketing is the activity, set of instructions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
 
Marketing is a process of exchange goods & services between buyers &
sellers. So it is very important part of the business.
 
‘‘Marketing is human activity directed at satisfying need & wants
through exchange process.’’
MARKETING - PHILIP KOTLER

DEPARTMENT
“Marketing is the performance of business activities that direct the flow of
goods and services from product to consumer or user”.

 
AMRICAN DEFINATION

OLD view of marketing: NEW view of market

Making a sale—“telling and Satisfying
selling” customer needs
 DISTRIBUTION CHANNEL :-

Retailer  
 
Whole Retailer  
sellers
Cons

Whole Jobber Retailer

sellers

 COMPETITORS:-

 Ranbaxy Laboratory
 Dabur India Ltd.
 Abbott India
 More Pen Laboratory
 Korpan
 Cipla Pharmaceutical Ltd.
 Cadila Pharmaceutical Ltd.
 Sun Pharmaceutical Ltd.
 Glaxo Smitkline Pharmaceutical Ltd.
 Glen mark Pharma Ltd.
  
 ADVERTISING
  :-
 
“Advertising is any paid form of none personnel communication to
 
promote ideas, goods or services by an identified sponsor.”
Manufacture
The main purpose of advertising is to give information to the customers about
the availability of new products in the market. In short advertising is paid form
of publicity.

Wockhardt Limited has not any type of advertising.

 TYPES OF MARKETING:-

 Direct Marketing
 Indirect Marketing
 DIRECT MARKETING:-
It means the products are directly used to consumer. It is the deal between
Manufacturing and Consumer. There is no midget between this.

 INDIRECT MARKETING:-
It means the products are not directly used to consumer. First, product is given
to the dealer and then dealer are give to the consumer. Here the dealer is
between the manufacture and consumer. It is the deal of manufacture, Dealer
or Agent and Consumer.
 
 
PRODUCTION
DEPARTMENT
 
 INTRODUCTION:-

The production department is the heart and blood of an industry. Production

department plays an important role in manufacturing of the production.
Production may include sub points likewise organization structure, keeping
raw material, keeping finished products, quality policy, raw material, suppliers
of raw material, production capacity and installed capacity of the organization
and related matters.

The Production Department is right now operated by Production Manager who

is also working in the capacity of director. The production department mainly
includes the Drugs and raw material stores.
 ORGANIZATION STRUCTURE:-

 BULK DRUG - I

Manager

Assistance
Manager

Senior Executive
 BULK DRUG - II /
Executives

Operator
 BULK DRUG – III
Manager

Senior
executive
 
 

Asset
Manager

Ranitidine

Operator
Executives
 

Senior Executive/
Executives

Executive Execu
 Operator
Executive
s
Senior Chemist
Manager

 BULK DRUG - IV
Contract
Employee
 Senior
Manager

Asset
 MATERIAL HANDLING EQUIPMENTS:-
Manager

 AUTO :-

Joints Senior Executive/

Hoist Executives

Lifts

Elevators Operator
Cranes

Forklifts

 MANNUALLY :-

Semi auto

Pallet

Drum trolley

 INVENTORY MANAGEMENT SYSTEM:-

INVENTORY:-

A physical resource those a firm holds in stock with the intent of selling it or
transforming it into a more valuable state.

INVENTORY SYSTEM:-
 A set of policies and controls that monitors levels of inventory and
determines what levels should be maintain, when stock should be
replenished and how large orders should be.

INVENTORY:-

Raw materials

Work in-progress

Finished goods

Maintenance, Repair and Operating (MRO)

ZERO INVENTORY:-

Reducing amounts of raw materials and purchased parts and

subassemblies by having suppliers deliver them directly. Reducing the
amount of works in progress by using J-I-T Production. Reducing the
amount of finished goods by shipping to markets as soon as possible.

RESON FOR INVENTORIES:-

Improve customer service

Economics of purchasing

Economic of production

Transportation savings

Hedge against future

Unplanned shocks (Natural Disasters, Surges in Demand, etc...)

To maintain Independence of supple chain

 INVENTORY COSTS:-
Procurement Costs

Carrying Costs

 PROCUREMENT COSTS:-
Order Processing

Shipping

Handling

Purchasing

Manufacturing Costs

 CARRYING COSTS:-
Capital Costs (Opportunity Costs)

Inventory Risk Costs

Space Costs

Inventory Service Costs

OBJECTIVES OF INVENTORY CONTROL:-

Maximize the level of customer service by avoiding under stocking.

Promote efficiency in production and purchasing by minimizing the cost of

providing an adequate level of customer service.
 PLANNING FOR UNCERTAINTY:-

Changing lead times

Changing Demand

Uncertainty creeps in plug in safety stock

CLASSIFYING INVENTORY TERMS:-

ABC classification

A items: - Very tight control, Complete and Accurate records, Frequent

review.

B items: - Less tight control, Good records, Regular review.

C items: - Simplest control possible, Minimum records, Large inventories,

Periodic review and recorder.

 SUPPORTED BY MANUFACTURING:-
BULK DRUG (Bhandup & Ankleshwar)

FORMULATION (Chikalthana, Daman, Waluj)

RECOMBINANT PHARMACEUTICAL (Waluj)

  MANUFACTURING PRODCTS:-
Anhydrous Azithromycin Adenosine Alfuzosin Hydrochloride

Amlodipine Besylate Amitriptyline Hydrochloride Azithromycin Form - I

Azithromycin (USP) Clarithromycin Captopril

Ciprofloxacin Hydrochloride Clopidogrel Bisulfate Form - Chlorothiazide Sodium

I

d-Amide d-Oxyphene Base (Solid) d-Oxyphene Base (Molten)

Dextromethorphan Dextropropoxyphene Dextropropoxyphene

Hydrobromide Hydrochloride Napsylate

Duloxetine Hydrochloride Divalproex Sodium Donepezil HCl

Hydrochloride Granisetron Hydrochloride Lansoprazole

Lomefloxacin Hydrochloride Loratadine Lisinopril

Niacin Sodium Salt of Naphthalene Nicardipine Hydrochloride

Sulfonic Acid

Nizatidine Nizatidine (Ph. Eur.) Omeprazole

Pefloxacin Methane Pantoprazole Sodium -butyl ester & Tert-butyl
Sulphonate Dihydrate ether of L-Threonine (TBEE)

Toldimphos Sodium Trandolapril Valacyclovir Hydrochloride

Trihydrate

Venlafexine Zonisamide Ziprasidone Hydrochloride

Monohydrate

Olpidem Tartrate Zoledronic Acid WCK 2349

Monohydrate

WCK 771 Cefuroxime Axetil Sterile Cefotaxime Sodium

(Amorphous)

Sterile Ceftriaxone Sodium Sterile Cefuroxime Sodium Sterile Ceftazidime

Pentahydrate

Ceftazidime for injection

 WOCKHARDT SAFETY,HEALTH AND ENVIRONMENT
POLICY:-
 
 
 
HUMAN
RESOURCE
DEPARTMENT
 

 
 
 
HUMAN
RESOURCE
DEPARTMENT
 
 INTRODUCTION:-

In this age, employment or employer both a play very important role in the
business enterprise, every business depends up on the large extend on a quality or
skill capacity knowledge, talented attitudes etc. of its personnel management thus a
growth of business depend on willingness is and ability to work for the employees.

In today’s competitive word, there are various problems which are by the top
to bottom management. The firm for proper utilization, personnel management is the
best criterion and it is also important to achieve the target.

But whole of visiting “WOCKHARDT LIMITED” of found that there is a

harmonies relationship between employee and management. In this industry a
promoter also know relationship between employee, labour, worker and
management. The also consider the employee an own people, thus there are an
affective utilization of human resources.
 ORGANISATION STRUCTURE:-

Executive
Mr. Pranav Parekh

Officer Officer
 
 Mr. Digant D. Chhaya

Assistant manager
Mr. Shashikant I. Panchal
 RECRUITMENT & SELECTION PROCESS:-

 RECRUITMENT:-
“Recruitment is the process of to discover the source of manpower to meet
the requirement of the staff schedule and to employee effective measure for
attracting that manpower in adequate number to facilitate effective selection of
an efficient working force.”

1. Internal sources:-

The company has all freedom to recruit the staff by way of promotion.
Promotion of an employee to higher position has many advantages they
are as under

 It builds good morale relations

 It encourages the ambitious employee
 It is a good selection because information of the employee is
readily available
 It is cheaper than outside recruitments

2. External sources:-
“The employees recruited from outside is called external
recruitment”
Following sources for the external sources.
 Employee working in other company.
 Advertisement– through print media and through TV media.
 Candidates forwarded by search firms and contactors.

 Through employment agencies

  SELECTION:-

“Selection is the process of picking individuals who have relevant qualification

to fill jobs in a company. The basic purpose is to choose the individual who
can most successfully perform the job, from the pool of qualified candidates”

These steps are available in the selection process:-

1. Interview call letter:-

2. Application for employment:-

3. Interview assessment:-

4. Medical examination of the candidate:-

5. Offer to the candidate:-

6. Joining of candidate:-

 TYPES OF TRAINING:-
 General Training
 On-the job Training
 WAGE AND SALARY STRUCTURE:-

 MONTHLY PAY AND ALLOWANCE:-

Familiarize employees on the system of salary and allowance payment.

Salary payment for the month is done usually on or before the end of the
month.

The preferred mode of payment is though bank transfers.

Employees have to open an account with the preferred banking partner.

The location HR will ensure they enroll for the same and intimate the pay
roll dept.

 SALARY COMPONENTS:-
Monthly salary components like basis rent allowance and special allowance
are applicable to all grades in the management.

Depending upon the grade transport expenses or car expenses

reimbursement may be applicable.

Annualized components like leave travel assistance and medical

reimbursement scheme depend on the grade of the employee.

Management appraisal and reward scheme is a six monthly performance

based variable pay a scheme applicable up to assistant Manager Level.

Wockhardt economic pay scheme applicable to all in Managers & above.

 WORKING TIME POLICY:-
Daily Attendance:-

The very first function of time office is taking daily attendance of the
employees. This is done by a punch card. Daily attendance means
keeping records of all employees of the company. All the employee of
the company must attained the 8 hours daily and 30 minutes break.

Leave posting:-

Also they note the leave of the employees and proper posting is done.
Taking the reading from the reader does this. Reader is a box that
stores the data in it and feeds to the user. This device records the
timing of the arrival of the employee and the person takes these
reading for further use.

For Factories Shift Timing Weekly Off

General Shift 9.15 A.M. to 5.45 P.M. Sunday

First Shift 6.00 A.M. to 2.00 P.M. As per shift schedule

Second Shift 2.00 A.M. to 10.00 P.M. As per shift schedule

Third Shift 10.00 A.M. to 6.00 P.M. As per shift schedule

Half an hour break….

 COMMUNICATION AND PERSONAL EFFECTIVENESS:-
 Business cards:-
 Laptop Facility:-
 Travel Kit:-
 Domestic Travelling:-
 International Travelling:-

 WELFARE PROVISION GIVEN TO THE EMPLOYEE

The welfare activities are carried out so that the employees feel that the Company is
taking care of them. Various activities for employees and workers welfare are being
carried out in WOCKHARDT. These are as follow:-

1) House rent allowance (HRA)

2) Bonus
3) P.F & family person
4) Gratuity
5) ESI Scheme
6) Uniform & Shoes
7) Medical
8) Leave Travel Allowance (LTA)
9) Canteen facility
10)Free tea at two times in a day
11)Washing facility
12)Dearness Allowance
13)Conveyance Allowance

All these benefits will be applicable from the date of fining & LTA will is
permissible after confirmation.
 OTHER INFORMATION
1) Medi claim benefit:
Provides for the hospitalization / domiciliary hospitalization expense for illness /
disease or injuries sustained self, Spouse and two dependents up to age of 75
years only another & father, ensured with a flat sum of Rs 50,000/- per person per
annum. Two dependent children of the employee up to the age of 21 years whose
names are registered with the insured company with a flat sum of Rs. 25,000/- each
per @

2) Celebration Annual Family get together: -

Once in a year celebration with family members, platform for performance
recognition’s talents & cultural contributions followed by dinner.

Merit Award: To staff for the recognition of consistent significant performances

(certificate from our C & MD and Gold medal.

Significant Award to management staff for the recognition of consistent significant

performances (certificate from our C & MD & Gold Medal)

Long service Award: To the employee on completion of 10,15,20& 25 years

(certificate & Award + Award)

Best suggestor Award: The best 3 suggestions of the year (certificate & gift)

Best safety Award: For the best contribution in the area of safety certificate & Gift)

Best safety Award: For the best Contribution in the area of Safety certificate & Gift)

3) Events:

Celebration of safety week day at Wockhardt “Safety is a way of life”

Every year we celebrate Safety week and our employee participate in various safety
competition i.e. Best Slogan, Safety poems etc Prizes are given in the presence of
dignitaries.

Wockhardt cricket trophy is hosted every year since 1989.

Participation of average 30 teams

We are the winner of this trophy for 11 memorable instances.

PART: ||
INTRODUCTION OF THE STUDY

LITERATURE REVIEW:

Literature review means, to study the existing literature in order to acquaint

our self with available body of knowledge in our area of interest.

Literature review helps to,

 Bring clarity and focus to your research area

 Improve your methodology
 Broaden your knowledge base in your research area
 Contextualize your findings
 A literature review is a body of text that aims to review the critical points of
current knowledge including substantive findings as well as theoretical and
methodological contributions to a particular topic.
 Literature reviews are secondary sources, so it, do not report any new
experimental work.
 Most often associated with academic-oriented literature, such as a thesis, a
literature review usually precedes a research proposal and results section.
 Its ultimate goal is to bring the reader up to date with current literature on a
topic and forms the basis for another goal, such as future research that may
be needed in the area.
 A well-structured literature review is characterized by a logical flow; current
and relevant references with consistent, appropriate referencing style; proper
use of terminology; and an unbiased and comprehensive view of the previous
research on the topic.
 While preparing this report I have read some book on Finance Management,
“I M PANDAY” and results of some research reports.
BACKGROUND OF THE STUDY:

WEIGHTED AVERAGE COST OF CAPITAL

 The component of cost have been calculated, they are multiplied by the
respective resources of capital to obtain the weighted average cost of capital.
The proportion of cost of capital must be based on target capital structure.
 Weighted average cost of capital is composite, Overall cost of capital. The
simple average cost of capital is not appropriate because firm hardly used
various source of fund equally in the capital structure. The expected rate of
return on a portfolio of all firm’s securities.
 Company’s cost of capital= weighted average of debt and equity returns.

The following step are involved for calculating firm’s WACC

 Calculating the cost of specific sources of funds.
 Multiplied the cost of each sources by the proportion in capital structure
 Add the weighted component cost to get the WACC.
 In financial decision making the cost of capital should be calculated on after
tax. The component cost should be the after tax cost.
IMPORTANT OF WACC
 WACC is mainly important for the decision of investment of company.
 WACC is important for measurement of individual cost of financial source of
fund.
 WACC is helpful in financial decision making through the cost of effectiveness
of individual security.
 WACC is helpful in decision making of dividend through prepared better
proportion of debt equity ratio.
 WACC is help of in measurement of return from the investment decision.

LIMITATION OF WACC
 Main limitation of WACC is that some time not useful in business practices, it
is only realistic.
 Through the WACC calculation , the individual cost of security is not specific
because of miscellaneous expenses are not include, in calculation of
individual cost of capital ,like brokerage charges, commission, ignorance of
tax.
 Sometimes WACC will not useful for future decision making because of the
uncertainty of future or unforeseen event like inflation, changes of govt.policy.
FORMULA:

COST OF EQUITY
K
e = EPS
P
EPS = PAT / NU.OF OUTSTANDING SHARE

COST OF DEBT

K
d = INTEREST(1-T)

TOTAL DEBT

COST OF PREFERENCE SHARE

K
p = PREFERENCE DIV.

TOTAL DEBT
WEIGHTED AVERAGE COST OF CAPITAL =
TOTAL WEIGHTED/100
TOTAL WEIGHTED = (EQUITY PROPORTION *COST OF EQUITY) +
(RESERVE PROPORTION *COST OF EQUITY) +
(DEBT PROPORTION* COST OF DEBT)

RETURN ON INVESTMENT = PBIT / CAPITAL EMPLOYED

CAPITAL EMPLOYED = TOTAL EQUITY + TOTAL RESERVE + TOTAL DEBT

 RESEARCH METHODOLOGY
WHAT IS RESEARCH?
Research is a systematic effort to gain new knowledge.
Research is a careful inquiry or examination, a recording and analysis of evidence
for the purpose of gaining knowledge.

PROBLEM STATEMENT
The problem of research is “To determine what the WACC and ROI of wockhadt ltd
for last three year”

OBJECTIVE OF STUDY
1. To determine WACC and ROI of wockhadt ltd
2. To determine specific cost of affecting WACC of firm.
3. To determine ROI and it’s comparison with WACC

RESEARCH DESIGN
Analytical research design

DATA COLLECTION METHODOLOGY

There are two sources of data collecting information which are as follow:
1. Primary data collection
2. Secondary data collection

Secondary data : In this project report use secondary data from annual reports,
internet and books.

PROJECT PERIOD:
Project period should be done in 8 weeks.

LIMITATION OF STUDY
 Time factor can be considered as main limitation.
 During the limited period of study may not be retailed, fully fledged and
utilisation in all aspects.
 The study is limited for 3 year from 2011 to 2013.
 The accuracy of finding is limited by the accuracy of tools used for analysis.
 The data used in this study have been taken from published annual report
only.

RESEARCH APPROACH AND TOOLS OF ANALYSIS

 For the interpretation I have used different chart like tables, column chart.
 The different tables and charts are used easily understandable and easily
defined analysis and interpretation under various tools.
ATA ANALYSIS AND INTEPRITATIO

2013 2012 2011

EPS 145.72 31.19 9.22
 PRICE OF SHARE 2017 521 324.25
COST OF EQUITY 7.22 6 2.84
( Ke ) (%)

TOTAL RESERVE 2350.84 654.93 326.48

(amt. in crore)
COST OF 7.22 6 2.84
RESERVE (%)

PRF.DIVIDEND .O4 .22 -

(amt. in crore)
PRF. SHARE 298.55 761.37 745.22
(amt. in crore)
COSTOF
PRF.SHARE(Kp)(%) .01 .028 -

INTEREST 215.37 214.43 267.11

(amt. in crore)
TOTAL DEBT 1657.15 2967.19 3849.53
(amt. in crore)
TAX(%) 35 35 35
COST OF DEBT% 8.44 4.70 4.51

PBIT 2068.27 791.15 371.46

(amt. in crore)
CAPITAL 4062.78 3676.84 4230.73
EMPLOYED
(amt. in crore)
ROI(%) 50.90 21.15 8.78

Weighted average cost of capital

2011 RS.(IN
 CRORE)
SOURCE AMOUNT PROPORTION COST WEIGHTED
COST
EQUITY 54.72 1.10 2.84 .00028
RESERVE 326.48 6.56 2.84 .00186
PREFERENCE 745.22 14.98 - -
SHARE
CAPITAL
DEBT 3849.53 77.36 4.51 .03489
TOAL 4975.95 100 .03703
WACC = TOTAL WIGHED COST *100 3.703
2012 RS.(IN
CRORE)
SOURCE AMOUNT PROPORTION COST WEIGHTED
COST
EQUITY 54.72 1.23 6 .00074
RESERVE 654.93 14.76 6 .00886
PREFERENCE 761.37 17.15 .028 .00005
SHARE
CAPITAL
DEBT 2967.19 66.86 4.70 .03143
4438.21 .04082
WACC = TOTAL WIGHED COST/100 4.082
2013 RS.(IN
CRORE)
SOURCE AMOUNT PROPORTION COST WEIGHTED
COST
EQUITY 54.79 1.256 7.22 .00091
RESERVE 2350.84 53.90 7.22 .03892
PREFERENCE 298.55 6.84 0.01 .00001
SHARE
CAPITAL
DEBT 1657.15 38 8.44 .03207
4361.33 .07100
WACC = TOTAL WIGHED COST/100 7.10

INTERPRITATION ON WACC

2011 RS.(IN
CRORE)
SOURCE AMOUNT PROPORTION COST WEIGHTE
 D COST
EQUITY 54.72 1.10 2.84 .00028
RESERVE 326.48 6.56 2.84 .00186
PREFERENCE 745.22 14.98 - -
SHARE
CAPITAL
DEBT 3849.53 77.36 4.51 .03489
TOAL 4975.95 100 .03703
WACC = TOTAL WIGHED COST *100 3.703

If we analysis of above table, we can see that equity proportion is 1.10% and reserve
proportion is 6.56% ,and also preference share proportion is 14.98% and debt
proportion is 77.36% and WACC is 3.703% in 2011.

2012 RS.(IN
CRORE)
SOURCE AMOUNT PROPORTION COST WEIGHTE
D COST
EQUITY 54.72 1.23 6 .00074
RESERVE 654.93 14.76 6 .00886
PREFERENCE 761.37 17.15 .028 .00005
SHARE
CAPITAL
DEBT 2967.19 66.86 4.70 .03143
4438.21 .04082
WACC = TOTAL WIGHED COST/100 4.082

If we analysis to above table, company have proportion of equity is 1.23%, reserve is

14.76%, preference proportion is 17.15%, debt proportion is 66.86% and WACC is
4.082% in 2012. It means WACC is increased by 10.23% in 2012.

2013 RS.(IN
CRORE)
SOURCE AMOUNT PROPORTION COST WEIGHTE
D COST
EQUITY 54.79 1.256 7.22 .00091
RESERVE 2350.84 53.90 7.22 .03892
PREFERENCE 298.55 6.84 0.01 .00001
SHARE
CAPITAL
DEBT 1657.15 38 8.44 .03207
4361.33 .07100
WACC = TOTAL WIGHED COST/100 7.10

If we analysis to above table, company have proportion of equity is 1.256%, reserve

is 53.90%, preference proportion is 06.84%, debt proportion is 38.00% and WACC is
7.10% in 2013. It means WACC is increased by 74% in 2013.

RETURN ON INVESTMENT
ROI = PBIT / CAPITAL EMPLOYED

PBIT = Profit Before Interest and Tax

CAPITAL EMPLOYED = Total Equity + Total Reserve + Total Debt

RETURN ON INVESTMENT

PARTICULAR 2011 2012 2013

(A) PBIT 371.46 791.15 2068.17
EQUITY 54.72 54.72 54.79

RESERVE 326.48 654.93 2350.84

DEBT 3849.53 2967.29 1657.15

(B) CAPITAL 4230.73 3676.85 4062.78

EMPLOYED

ROI (A/B) 8.78% 21.15% 50.90%

YEAR PBT CAPITAL ROI (%)

EMPLOYED
2011 371.46 4230.73 8.78

2012 791.15 3676.84 21.51

2013 2068.27 4062.78 50.90

 ROI (%)
60

50.9
50

40

30
21.51
20

10 8.78

0
2011 2012 2013

ROI (%)

INTERPRITATION ON ROI
  Return on investment from 2011 to 2013 are 8.78%, 21.51%, and 50.90%
respectively.

 In 2011 company have less opportunity so at time return on investment of

wockhardt limited only 8.78%

 In 2012 return on investment is increased by 145% on comparison of previous

year.

 In 2013 wockhardt limited have lots of opportunities so return on investment is

increased by 136% on comparison of previous year.

INTERPRITATION ON COMPARISION ON ROI AND

WACC

YEAR ROI (%) WACC (%)

2011 8.78 3.702
 2012 21.51 4.082
2013 50.90 7.10

Chart Title

2013 7.1
50.9

2012 4.082
21.51

2011 3.702
8.78

0 10 20 30 40 50 60

Series3 WACC (%) ROI (%)

INTERPRITATION

COMPARISION OF ROI AND WACC

 If ROI is greater than WACC, then company getting returns more than
the capital employed

 ROI is greater than WACC respectively from 2011 to 2013. So we can

say that company has getting better return than capital employed in
2011, 2012and 2013.

 In 2011 ROI is 7.78% and WACC is 3.703%

 In 2012 ROI is increased by 145% and WACC is increased by 10%.

 In 2013 ROI is increased by 136% and WACC is increased by 74%

  
FINDINGS
WACC is mainly important for the decision of investment of the
company. WACC is helpful in financial decision making through the cost
effectiveness of individual security. WACC is helpful in decision making
of dividend. WACC is helpful in measurement of return from investment
decision of WOCKHARDT LIMITED.
FINDINGS ON WACC
 Debt proportion are increase in WOCKHARDT LTD
therefore weighted average cost of capital was increased.

 WACC from the year 2011 to 2013 are 3.703%, 4.082%,

7.10%.

 In 2012 cost of debt increased by 4.21% and cost of

equity and cost of reserve are also increased by 111%
and its effect on WACC have also increased by 10%
respectively.

 In 2013 cost of debt is increase by 80%, cost of equity and

cost of reserve are increase by 20% and cost of
preference share are decrease by 64% but WACC is
increased by 74% due to highly increase in cost of debt.

 In 2013 cost of preference capital decrease but WACC is

increase because of cost of equity, cost of reserve and
cost of debt increase in this year.

FINDING ON ROI

 The return on investment of WOCKHARDT LTD in 2011 to 2013 is

8.78%, 21.51%, 50.90% respectively.
 In 2011 WOCKHARDT LTD have PBIT is very low and capital
employed is very high so result is ROI is 8.78%.

 In 2012 WOCKHARDT LTD have grown up with better than

previous year company have increased ROI 8.78% to 21.15%
because of increase PBIT and decrease in capital employed by
13%.

 In 2013 WOCKHARDT LTD have increase capital employed by

10%, but more faster increased PBIT than capital employed so
result is ROI is increase by 136%

 FINDING ON ROI AND WACC

 If ROI is greater than WACC, then company getting returns more

than the capital employed

 ROI is greater than WACC respectively from 2012 and 2013. So

we can say that company has getting better return than capital
employed in 2012 and 2013.
 In 2011 ROI is 8.78% and WACC is 3.703%

 In 2012 ROI is increased by 145% and WACC is increased by

10%. ROI is increase because of PBIT increase 113% and capital
employed decrease by 13%. At that time WACC have also
increase because of in 2012 cost of debt increase by 4.21% .

 In 2013 ROI is increased by 136% and WACC is increased by

74%. ROI increase because of highly increase in PBIT and also
increase in capital employed; PBIT is 161% and capital employed
is increase by 10.50%. At time WACC is also increase because of
cost of debt, cost of reserve and cost of equity increase by 80%,
17%, 17% respectively.
SUGGESTION

Analyzing financial performance are most significant part of company

because financial statement analysis involve a comparison of firm’s
position with that of other firm in same line of business, which usually
identify by the firms industry classification. The analysis is used to
determine the position of the company so identify its current strength and
weakness and suggest action the firm might Perseus to take advantages
of strength and correct weakness.

 The weighted average cost of capital is sufficient for position for

the WOCKHARDT LIMITED at present level and it is better to
maintain present position.
 To increase profit at higher rate so WOCKHARDT LIMITED have
carefully design risk management system and increasingly
aspiration of service should be taken.
 We can suggest that ROI have better position on present level.
 Last three year in earning and capital employed is highly fluctuated
so increase the ROI the WOCKHARDT LIMITED have decrease
capital employed.
 I suggest company have better position in industry so better
utilization of reserve capital.
 I also suggest company have invested in R &D. So company have
more powerful in market and take competition with competitor.

RECOMMENDATITION

 CONCLUSION
 BIBLIOGRAPHY
 ANNEXURE
CONCLUSION

 It was great experience to complete my training at WOCKHARDT

LIMITED where I study about WACC and ROI.

 It can be concluded that WOCKHARDT LIMITED have good

market leadership in its area, good brand image, and good work
culture.

 According to study WACC and ROI have efficient position at

WOCKHARDT LIMITED which will help to attract and maintain
trust of stakeholder.
 BIBLIOGRAPHY

WEBSITE

 www.moneycontrol.com
 www.wockhardt.com

ANNUAL REPORT

 Wockhardt annual report

BOOKS

Name of the book Authors

1) Financial Management I. M. Pandey
2) Marketing Management Philip Kotler
3) Personnel Management Edward Flippo
4) Production Management S. C. Sharma
ANNEXURE

 PROFIT AND LOSS ACCOUNT OF YEAR

2013,2012, 2011
 BALANCESHEET OF YEAR 2013,2012, 2011
 SHORT FORMS
 ASSUMPTIONS
 Profit & Loss account ------------------- in Rs. Cr. -------------------

  Mar '13 Mar '12 Mar '11

  12 mths 12 mths 12 mths

Income
5,609.4 4,619.7
Sales Turnover 3,755.22
2 2
Excise Duty 0.00 6.16 3.98
5,609.4 4,613.5
Net Sales 3,751.24
2 6
Other Income 127.94 -526.21 -557.31

Stock Adjustments 180.27 106.56 -61.75

5,917.6 4,193.9
Total Income 3,132.18
3 1
Expenditure
1,997.4 1,839.1
Raw Materials 1,488.07
1 4
Power & Fuel Cost 97.08 80.38 55.83

Employee Cost 655.90 589.33 549.70

Other Manufacturing
0.00 43.03 17.29
Expenses
Selling and Admin Expenses 0.00 0.00 0.00

Miscellaneous Expenses 976.83 728.37 533.21

Preoperative Exp Capitalised 0.00 0.00 0.00
3,727.2 3,280.2
Total Expenses 2,644.10
2 5
  Mar '13 Mar '12 Mar '11

  12 mths 12 mths 12 mths

2,062.4 1,439.8
Operating Profit 1,045.39
7 7
2,190.4
PBDIT 913.66 488.08
1
Interest 215.37 214.43 267.11
1,975.0
PBDT 699.23 220.97
4
Depreciation 122.14 122.51 116.62

Other Written Off 0.00 0.00 0.00

1,852.9
Profit Before Tax 576.72 104.35
0
Extra-ordinary items 0.00 0.00 0.00
1,852.9
PBT (Post Extra-ord Items) 576.72 104.35
0
Tax 258.21 235.13 8.65
1,594.6
Reported Net Profit 341.59 100.89
9

Balance Sheet ------------------- in Rs. Cr. -------------------

  Mar '13 Mar '12 Mar '11

  12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 353.34 816.09 799.94
Equity Share Capital 54.79 54.72 54.72
Share Application Money 0.00 0.00 0.00
Preference Share Capital 298.55 761.37 745.22
Init. Contribution Settler 0.00 0.00 0.00
Preference Share Application Money 0.00 0.00 0.00
Employee Stock Opiton 0.00 0.00 0.00
Reserves 2,350.84 654.93 326.48
Revaluation Reserves 0.00 0.00 0.00
Networth 2,704.18 1,471.02 1,126.42
Secured Loans 1,649.51 2,958.14 3,379.17
Unsecured Loans 7.64 9.05 470.36
Total Debt 1,657.15 2,967.19 3,849.53
Minority Interest 0.00 0.00 0.00
Policy Holders Funds 0.00 0.00 0.00
Group Share in Joint Venture 0.00 0.00 0.00
Total Liabilities 4,361.33 4,438.21 4,975.95
  Mar '13 Mar '12 Mar '11

Application Of Funds
Gross Block 2,799.26 3,715.08 4,048.65
Less: Accum. Depreciation 809.66 740.20 1,468.43
Net Block 1,989.60 2,974.88 2,580.22
Capital Work in Progress 490.94 498.75 887.41
Investments 2.63 90.75 89.63
Inventories 1,058.83 888.56 713.73
Sundry Debtors 958.46 758.69 605.24
Cash and Bank Balance 1,096.06 699.99 482.89
Total Current Assets 3,113.35 2,347.24 1,801.86
Loans and Advances 443.53 342.22 529.45
Fixed Deposits 0.00 0.00 0.00
Total CA, Loans & Advances 3,556.88 2,689.46 2,331.31
Deffered Credit 0.00 0.00 0.00
Current Liabilities 1,424.11 1,620.18 790.62
Provisions 254.61 195.45 122.00
Total CL & Provisions 1,678.72 1,815.63 912.62
Net Current Assets 1,878.16 873.83 1,418.69
Minority Interest 0.00 0.00 0.00
Group Share in Joint Venture 0.00 0.00 0.00
Miscellaneous Expenses 0.00 0.00 0.00
Total Assets 4,361.33 4,438.21 4,975.95

SHORT FORMS
1) API : Active Pharmaceutical Ingrediants.

2) BSE : Bombay Stock Exchange.

3) NSE : National Stock Exchange.

4) BDP : Bulk Drug Plant.

5) DIV : Dividend.

6) PBIT : Profit Before Interest & Taxes.

7) PAT : Profit After Taxes.

ASSUMPTIONS

 TAX rate is used in calculation on statutory based, and

TAX is taken 35% and its use in cost of debt.
 Debt is taken as irredeemable for calculating cost of
debt.
 We used EARNING PRICE APPROACH for Calculating
cost of equity and cost of reserve.