1. An Overview of Pharma Industry

2.  INTRODUCTION  OBJECTIVES  IMPORTANCE  PROCESS ICAI BHAVAN, BARODA2

3.  Management Planning and Control System encompass “ A Financial or quantitative statement prepared prior to a defined period of time of a policy to be prepared for that period to attain Short Term(Action Plan) and Long Term(Strategic Plan)of the organization”. ICAI BHAVAN, BARODA3

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5.  Management Planning and Control Systems provides a company wide systematic and structured approach, which provides a holistic framework to ◦ A) Plan ◦ B) Control ◦ C) Reduce & Eliminate Cost, throughout the value chain. ICAI BHAVAN, BARODA5

6.  To concentrate on profitable activities and to eliminate non-profitable activities.  In the highly competitive world, to concentrate on, ◦ A) Research and Development ◦ B) Innovation ◦ C) New Products ◦ D) Marketing Strategy ◦ E) High tech production ICAI BHAVAN, BARODA6

7.  Which products are innovative and profitable.  Which products should be emphasized more.  Product profitability through cost reduction. ICAI BHAVAN, BARODA7

8. 8 Sales forecasting Production Planning Capital Expenditure Planning Raw Material Scheduling Utility Planning Manpower Planning Estimates Factory Overhead Estimates Administrative Overhead Estimates Selling & Distribution Overhead Estimates of Finance Charges

9.  The Pharmaceutical Industry in India is the world’s third largest in terms of volume. According to the department of Pharmaceuticals of the Indian Ministry of Chemicals and Fertilizers, the total turnover of India’s Pharma Industry was 50K Cr in 1995, 153K Cr in 2010 and expected to grow 600K Cr by 2020. ICAI BHAVAN, BARODA9

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12.  If capacity is a problem, capacity planning should also be planned in advance to meet the future requirements, which is a Strategic plan.  Criteria for Investment decision: ◦ A) Payback Period ◦ B) IRR ◦ C) NPV ICAI BHAVAN, BARODA12

13.  On the basis on production planning, Raw material scheduling is done. What is produced between 15 th March to 15 th April is received between 15 th February to 15 th March. Thus inventory control is also possible. ICAI BHAVAN, BARODA13

14. ICAI BHAVAN, BARODA14  In a highly competitive economy right type of persons are difficult to get.  Replacement should be done in advance of Top Management.

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16.  Sun Pharma has achieved a turnover of 16K Cr and Net Profit of 4500 Cr in 2013-14 of which 70% is international business.  In H1 2014-15 they have achieved a turnover of 9K Cr with NP of 2962 Cr.  Strategic plan of Sun Pharma is to reach turnover of 40K Cr and NP of 10K Cr in next 2 Years. ICAI BHAVAN, BARODA16

17.  They are planning to achieve this strategic plan by following actions: ◦ A) Taking over Ranbaxy. ◦ B) Taking over business in Japan and introducing some new product for Japanese market. ◦ C) Plan to acquire business in Brazil and South Africa. ◦ D) Enhancing R&D activities by spending 8% of the turnover on R&D and introducing new products not only for domestic market but also for international markets. ICAI BHAVAN, BARODA17

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22.  The turnover of Lupin for the year 2013-14 is 12K Cr with NP of 3000 Cr of which international business id 65%.  They have achieved turnover of 8K Cr in H1 2014-15 with NP of 1800 Cr.  Strategic plan is to reach 20K Cr in next 2 Years with NP of 5500Cr. ICAI BHAVAN, BARODA22

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26.  Turnover of Cadila is 8000Cr in 2013-14 with NP of 960Cr.  In next 3 years, Cadila is targeting a turnover of 15K Cr with NP of 1500Cr. ICAI BHAVAN, BARODA26

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29.  Management control systems are tools to aid management for steering an organization toward its strategic objectives and competitive advantage.  Management controls are only one of the tools which managers use in implementing desired strategies. However strategies get implemented through management controls, organizational structure, human resources management and culture. ICAI BHAVAN, BARODA29

30. A) Activity Based Costing B) Balance Scorecard C) Budgeting D) Capital Budgeting E) Just In Time D) Kaizen(Continuous Improvement) E) Target Costing F) Total Quality Management(TQM) ICAI BHAVAN, BARODA30

31. A) Projected profitability statement of a company as a whole. B) Projected profitability of profit centers. C) Projected profitability of products. D) Projected balance sheet. E) Estimates of working capital requirement. F) Targeted contribution v/s Actual Contribution. G) Variances. ICAI BHAVAN, BARODA31

32. 32 CA Parin Kapadia CMA H R Kapadia M:9427302046 M:9426026536

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