INTERNSHIP

REPORT

ON

(ALPENGLOW PHARMACEUTICALS)
BY
[Muhammad Sohrab]
[ID :14589]

[BECHOLAR BUSINESS ADMINISTRATION]

IQRA NATIONAL UNIVERSITY, PESHAWAR

1
KHYBER PAKHTUNKHWA- PAKISTAN

2018-2022
INTERNSHIP REPORT

ON

[ALPENGLOW PHARMACEUTICALS]
BY

[MUHAMMAD SOHRAB]

[14589]
An internship report submitted to IQRA NATIONAL UNIVERSITY Peshawar, in partial
fulfillment of the requirements for the degree of

BECHOLAR OF BUSINESS ADMINISTRATION

HUMAN RESOURCES MANAGEMENT
Approved by:

--------------------------------- Supervisor

Mr. kashif Nawaz

--------------------------------- Chairperson Department of business Administration

Dr. Amna Ali

-------------------------------- Internship Associate

Ms. Sosan Abbas

2
 IQRA NATIONAL UNIVERSITY, PESHAWAR

KHYBER PAKHTUNKHWA-PAKISTAN

[2018-2022]

TABLE OF CONTENTS

Chapter No. Title Page No.

Acknowledgments...................................................................................................i
Preface………………………………………………………………………………………………………………..ii
Executive Summary…………………………………………………………………………………………….iii
Dedication …………………………………………………………………………………………………………..iv
CHAPTER -1 INTRODUCTION ..............................................................................................1
1.1 Background of the study...................................................................................1
1.2 Purpose of study...............................................................................................1
1.3 Limitation of study............................................................................................2
1.4 Data Collection..................................................................................................2
CHAPTER- 2 OVER VIEW OF THE ORGANIZATION...............................................................3
2.1 About Org........................................................................................................3
2.2 Company Objective.........................................................................................4
2.3 Products..........................................................................................................4
2.4 Business volume..............................................................................................6
2.5 Major competitors..........................................................................................

3
CHAPTER -3 ORGANIZATIONAL STRUCTURE ......................................................................7
3.1 organizational hierarchy chart.........................................................................7
3.2 categories of employs.....................................................................................8
3.3 mission...........................................................................................................8
3.4 vision.............................................................................................................8
3.5 Departments......................................................................................................9
3.6 Process for Receipt of Material………………………………………………………………….…16
CHAPTER -4 FINANCIAL ANALYSIS……………………………………………………………..…………………17
4.1 Financial statement analysis……………………………………………………………………………17
4.2 Common Size analysis Of Balance Sheet…………………………………………………………18
4.3 Common Size analysis Of Income Statement………………………………………….………19
4.4 Financial Ratio Analysis………………………………………………………………………………..…20

CHAPTER -5 SWOT ANALYSIS..............................................................................................26

5.1 STRENGTHS:......................................................................................................26
5.2 WEAKNESSES:....................................................................................................27
5.3 OPPORTUNITIES:...............................................................................................28
5.4 THREATS:...........................................................................................................29
CHAPTER- 6 CONCLUSION, FINDINGS AND RECOMMENDATIONS ...................................30
6.1 conclusion: .................................................................................................…....30
6.2 Findings:............................................................................................................31
6.3 Recommendation:.............................................................................................32
6.5 Activities in organization: .…………………………………………………….……………………….33
6.5 Learning from Organization: .………………………………………………………………………...33
BIBLIOGRAPHY ........................................................................................................35

4
ACKNOWLEDGEMENT

I am thankful to my Almighty, beneficent & The Most Knowing Allah for eternal help &
blessings. To all those people whose efforts and guidance make this project successful up
till this point? I am thankful to Allah for bestowing me with the strength to do this effort. It
was my parents who supported me at all the stages of my life and their prayers assist me to
handle this effort. I would like to appreciate the constructive guidance, valuable
suggestions, useful comments, always smiley face & care of Mr.farhad in Finance
Department Alpenglow Pharmaceuticals Industry Risalpur Area nowshera, for supervising
me for helping in compiling this report.

SOHRAB KHAN

5
PREFACE

This report is a through essence of my study which I conducted in a period of four months
in a Alpenglow Pharmaceuticals as an internee. I have exclusively studied and observed the
organization structure, services and personnel administration of the organization.

The purpose of this report is to evaluate the performance of Alpenglow Pharmaceuticals

and give concrete recommendation for further improvement. Although the org is
functioning satisfactory, even here are some drawbacks have been pointed out in the
operation of the org.

Four months period is too less to understand the operation of Alpenglow Pharmaceuticals,
but still it was a great experience for me to have a feel of the practical world and keeping in
view the limitation of the study. This seems reasonable attempt.

I am thankful to my all my organization staff for their valuable guidance in preparing this
report in a presentable fashion.

EXECUTIVE SUMMARY

Alpenglow Pharmaceuticals was incorporated in 2016 as a private limited company with

the govt of Pakistan. The Head office and production facilities are located at Export
processing zone Risalpur nowshera. The company is spreaded over an area of 3 acres
having manufacturing facilities for Syrups, Drops, Capsules and Tablets.

6
As this organization is related in Pharmaceuticals and have a vital role in Public care. This
organization is known for care of Humanity. And also contribute in Economy of the state
with the emerging development and growth of the leasing market in Pakistan.

In this regard, a variety of companies are playing in the competition in which it plays an
important role. And every company strives to provide the entire information to its
customers. And that is why the company has increased sales about 13 % from previous
year.

This report represents my 4 months of internship at the Alpenglow Pharmaceuticals. The

purpose of this report is to give a detailed of overall view of the company. It includes an in-
depth analysis of company’s technical, financial, marketing, Human Resource and
Operations. SWOT analysis and ratio analysis has been carried out with great care and
further Recommendations to improve the operations of company are given at the end. I was
working in Finance/administration/market Department during my internship. I fulfilled all
the tasks that were given to me successfully.

DEDICATION

7
By grace of Allah, I dedicate this project to my loving family, caring &

respectable teachers whose comrade-ship has always been very encouraging

for me and strengthen me.

SOHRAB KHAN

CHAPTER – 1

INTRODUCTION

8
1.1 Background of the study

Pharmaceutical industry plays a vital role in the development of the health of the masses of
any country. With the introduction of modern technology and increased competition at
national and domestics level has made this field a challenging one.

1.2 Purpose of the study

Internship in an organization is a requirement for the degree of BBA (Hons) from the iqra
national University Peshawar . In this regard students work in any organization for a
specific period of time from six to eight weeks to enhance the practical skills and at the end
they write a report about that organization. I preferred Alpenglow Pharmaceutical, as it
was convenient for me to get the opportunity for internship. Beside this I could learn more
and more there. My internship at the Alpenglow Pharmaceuticals have following
objectives.

1. To observe the working of different departments of the company

2. To develop relations to get more practical information about real world life.
3. Apply the theoretical skills to the solution in real world business problems.
4. Build confidence through interviewing the officers of the different departments.
5. Develop analytical and communication skills.
1.3 Limitation of the study

The whole scope of the operation of the Alpenglow Pharmaceuticals is difficult to be

analyzed completely in a short time of four months. Non availability of sufficient
information is another limitation of the study.

9
1.4 Collection of Data

It was the most important task to get maximum possible information about the
organization. A number of techniques have been used for the collection of the required
data and compilation of the report. Both types of primary and secondary data have been
collected.

Sources of Primary data:

I. Interviews of the company employees.

II. Personal observations.
III. Instructions given by the employees of the Stanley Pharmaceuticals.
Sources of the Secondary data:

I. Annual reports.
II. Manuals of the different departments of the company.
III. Brochures and circulars of the company.
IV. Internet.

10
CHAPTER NO-2

OVERVIEW OF ORGANIZATION

2.1 Alpenglow Pharmaceuticals Private Limited

Alpenglow Pharmaceuticals was incorporated in 2017 as a private limited company with
the Government of Pakistan. The head office and production facilities are located at
industrial zone Risalpur Nowshera . The company is spreaded over an area of 3 Acres,
having manufacturing facilities for Syrups, Drops, Tablets, Dry Syrups and Capsules.

A separate section for Quinolone has been recently developed. Alpenglow has state of the
art machinery for manufacturing of pharmaceutical products. The quality control laboratory
is fully equipped with all the required equipments for testing of Raw Material, in process
and finish products. The production and Quality Control Staff is highly qualified having
20-30 years of experiences in Multinational and National Companies.

Alpenglow pharmaceutical (Pvt.) Ltd. is one of the modern pharmaceuticals manufacturing

and marketing companies in Pakistan with a 21st century standard plant complying fully
with CGMP & GLP. Principal activities of the company are manufacturing, sale and
distribution of pharmaceutical products.

This company has been established in 2017 at plot number A/7 Export processing zone
Risalpur nowshera. All of the departments are situated in one building and all the central
offices of production, marketing, quality control, finance, accounting and human resource
management raw material and finished goods stores to meet the demand of entire country.
Pakistan. Initially eight products were launched in the market for the first time. Addition
were made after passing time and the company got the desired result from market and now
the company offers more than 46 different products. In a very short period of about 5 years
Alpenglow had envious success and has achieved one of the best growth rates in the
pharmaceutical industry.

11
Keeping in view slogan of the day “BETTER ENVIRONMENT FOR TOMORROW”, the
company plans to construct a wastewater treatment plant and measures are to be taken to
control air pollution.

2.2 Objectives of the Company

Objectives of the company are to provide quality medicine at affordable price. Service to
poor patients is always its sole objective.

Following are the other objectives.

1. To provide quality medicine to customers.

2. To provide job opportunities.

3. To earn foreign exchange.

4. To increase export to Afghanistan and Middle East.

2.3 Alpenglow Products

 Syrups
1. Broxol Syrup
2. Broxol-DM Syrup
3. Calsid Liquid
4. Dymin Syrup
5. F. S. Syrup
6. Fervit Liquid
7. Manacid Forte Suspension
8. Multonic Syrup
9. Naxid Suspension
10. Riam Suspension
11. Rintal Syrup
12. Vasedex-L Syrup
13. Bendazol Suspension

12
  Capsules
1. Baccil 400mg capsule
2. Pendox 100mg capsule
3. Fixime 250mg capsule
4. Fixime 500mg capsule
5. Penclor 250mg capsule
6. Penclor 500mg capsule
7. Aldrox 500mg capsule
8. Pensef 250mg capsule
9. Cyanir 300mg capsule
10.

 Tablets
1. Qiben 25 mg tablets
2. Clozim-1 Tablets

2.4 Business Volume

Amount in Rs
Years 2018 2019 2020 2021
Total Assets 195,352,1 256,115,77 419,029,31 562,320,6
67 1 2 65
Deposits, Advances 52,901,8 49,214,11 94,505,80 132,953,9
54 3 4 61
Reserves 85,835,8 100,154,80 131,557,01 168,398,4
88 4 5 17

13
2.5 Major Competitors

1. Z-Jans
2. Saydon pharmaceuticals Pvt (Ltd)
3. Medicraft pharmaceuticals Pvt (Ltd)
4. Hamza Pharmaceutical
5. Shaf pharma is also one of the major and important competitors
6. Getz Pharma is the important competitors of Alpenglow

14
CHAPTER-3
Organization Structure
There is one Chief Executive and two directors of the company i.e. director procurement
and administration and director sales & marketing and finance. Next to directors is General
Manager of the company who is responsible for whole operation of the company. Beside
these there are five managers of the five main departments namely the accounts and finance
manager, procurement manager, production manager, quality control manager and sale and
marketing manager.

3.1 Management Hierarchy of Org

Chief Executive
Officer

Procurement & Finance Sales &

Admin Director Marketing Director

Procurement Admn Manager Finance Manager GM Marketing

Manager

Asstt. Internal Auditor

Finance Manager. Product Manager

Accounts Officer

Accounts Assistant

15
3.2 Categories of Employees

Following are three categories of employees within the company:

1. Official

2. Clerical

3. Non Clerical

3.3 Mission

Our mission is to take care of the health of human beings by providing them quality
Products under quality control management. To uphold our social responsibilities of
delivering highest standard healthcare services to all segments of society without
compromising on our core values of integrity, good ethics and commitment. To become a
globally acclaimed pharmaceutical company through development

3.4 Vision

To become a global healthcare organization and to be recognized as domestic and

internationally integrated healthcare and pharmaceutical company through Innovation,
Quality and Competence. To become the leading pharmaceutical player in the industry by
assuring high quality standards and cost effective products at all times. 

3.5 Departmentation of Alpenglow Pharmaceutical Pvt LTD

Departmentation is simply arranging the activities into meaningful groups. It distributes
the workload and increases efficiency and effectiveness. Departmentation can be done on
various bases for example by customers, function or by location. Alpenglow
Pharmaceuticals Private Limited consists of various departments based on its different
functions. So it can be said that the basis for departmentation at functions is purely
functional.

16
Departments of Alpenglow Pharmaceuticals
1. Finance Department.
2. Human Resource Department.
3. Quality Control Department.
4. Marketing Department.
5. Administration Department.
6. Procurement Department.
7. Production Department.

3.5.2 Finance Department

The function of the finance department is to plan, organize, direct, coordinate and control
the financial activities of the Alpenglow Pharmaceuticals Private Limited. Finance
department helps all the departments in financial matters. Finance department does all the
financial, accounting, budgeting, statistical, reporting and record keeping activities and
review it periodically. Finance manager ensures the preparation of financial statements and
maintenance of books of accounting properly and according to the principle and practices
of accounting. In Alpenglow Pharmaceuticals Private Limited the whole accounting
records are mostly prepared manually.

Sub Functions of finance department are as follow.

1. VOUCHING
2. BOOKING
3. POSTING
4. TRIAL BALANCE
5. PREPARATION OF BANK RECONCILIATION STATEMENTS
6. VERIFICATION OF CASH BOOK
7. MAKING ADJUSTMENTSPAYMENT BY DISTRIBUTORS
8. ORDER BOOKING
9. PAYROLL SECTION
10. SALARY PERIOD

17
 11. MONTHLY PAYROLL PREPARATION
12. PAYROLL DISBURSEMENT

3.5.2 Human Resource Department

Each and every organization no matter whatever may be its form operates withy and
through people. When there will be people they will need management i.e. personnel
management. Effectiveness of an organization is dependent upon how best their personnel
are managed. The most important asset of any organization is its qualified and efficient
personnel or employees. This department is operated as under:

Sub Functions of HR department are as follow.

1) HIRING PROCESS
2) INITIAL INTERVIEW
3) TEST
4) APPROVAL
5) INDUCTION
6) APPOINTMENT
7) PROBATION AND CONFIRMATION
8) TRAINING AND DEVELOPMENT
9) CREATION OR ABOLITION OF POST

3.5.3 Quality Control Department

In order to ensure quality Alpenglow Pharmaceuticals has got the most modern and
sophisticated system for analyzing different dosage form. The company is equipped with
most modern instruments for different tests and is confident to give best quality products.

This department is headed by Quality Control Manager. This department has responsibility
for the stability and improvement of quality of the products. All the raw materials and
packing material are checked before using them for production and packing. All of the
products are supervised throughout the production process and after the production and

18
packing of different samples from each batch and are kept at different degrees of
temperature and checks them for quality after different time periods.

Sub Functions of Quality Control department are as follow.

1) RAW MATERIAL CHECKING

2) CHECKING DURING PRODUCTION

3.5.4 Marketing Department

Marketing is the process of planning and execution of the conception, pricing, promotion
and distribution of goods, services and ideas to create exchange with target group that
satisfy customers’ and organizational objectives.

In other words marketing is the total system of business activities designed to plan, price
promote, and place organization’s products.

Marketing is basis of the success of the organization. It stresses customer orientation and
co ordination of marketing activities in order to achieve the over all objectives of the
company. Marketing is the customer satisfaction; however it must not be allowed to
replace achievement of objectives as the fundamental national for the marketing concept.

Marketing department is an important department of the organization because it is a market

oriented company. It is the largest department of the company cowering about all of the
four provinces of Pakistan. A marketing Manager who is responsible to monitor the field
force and distributor officers very keenly performs his duties through following steps.

1. Daily Visit Report

2. Advance Tour Working Plan

3. Monthly Sales Performance Report

4. Weekly Work Plan

5. Expense Statement

19
6. Monthly Sales or Stock Statement

7. Goods Return Report

3.5.5 Distribution network

A channel of distribution sometimes called a trade channel for a product is route taken by
the title to the product as it moves from the producer to ultimate consumer or industrial use.
A channel always includes both the producer and the final customer for the product as well
as all middlemen involved in title transfer. As the company does not have any industrial
buyer of its products so the ultimate customer are the consumers. The company has
separate authorized distributors for the different products throughout the country.

The distributors receive products directly from the company warehouses. The distributors
sell the products to the whole seller and the retailer. The same distributor have their own
vans and salesman who go from shop to shop and sell the products either on their own
behalf or by the order taken by the company’s sales promotion officer (SPO).

Distributors play a vital role in the process of distribution as the sale of the products depend
upon the distributors so the main effort increasing the sale of the product require
merchandising of the company products because they have to keep the retail outlets full
and complete with company products. Distributors ensure the availability of products
everywhere SPO reach and there is a demand of the products.

3.5.6 Dispatch Process

First of all the transporters bring the entry pass with the following particulars written on it.

I. Quantity to be dispatch
II. Truck number
III. Driver name
IV. Destination
V. Name of the transport company

Without pass no private vehicle can enter the premises of the company.

20
Distributors of the Stanley Pharmaceuticals Private Limited

Name Station

Khan brothers traders Multan

Qadri distributers Khanewal

Friends trader Muzafargarh

Bukhari distributors Bahawalpur

Shaffa traders Bahawalpur

New ittehad Rahimyarkhan

Khan agencies R.Y.K

Jamil medical Tonsa

Nadeem traders B.nagar

Tahir brothers Sahiwal

Ashraf sons Okara

Ali shahid Okara

Shaf pharma Vehari

Idrees traders Sahiwal

Us medicine D G khan

Muslim traders Layyah

Rehman medical Bhakkar

New raja Ghotki

21
 Sun shine k.kot

Shafiq pharma Shikhapur

Rescure pharma Sukkur

S.K.R medicine Jacobabad

Good men Larkana

Nisar medicine Dado

S.M traders Faisal abad

A.A distributor T.T Singh

Romi traders Jhang

Fazal sons Sargodha

Arif medicos Mian wali

Bilal agency Mandi B.din

Miraj ud din Gujranwala

Pak medicine Hafiz abad

Rehman medical store Sialkot

Gujarat traders Gujarat

Miraz co Narowal

Awan medical store Jehlum

Hamza medicose Pabbi / Nowshera

22
 Sk medical store Dagi qadeem

Stars traders Peshawar

Naveed Pharma Nowshera

Ahmad medical shop Attock

Ali Imran medicose Islamabad

3.5.7 Administration Department

This department is responsible for overall operations of the company. Main functions of
the administration includes dealing with government organizations and institutions
regarding excise and taxation duty, Royalty, contracts, transportation, security,
maintenance of employees, assets and company buildings and plantations.

3.5.8 Procurement Department

The procurement manager who makes all the arrangement to put together the entire things
that is required by the production department heads this department. He makes sure
smooth supplies. The procurement manager is responsible for the purchase of raw material
(local) for the production plants. It is responsibility of the procurement to set certain
standard of quantity of raw packing material to be purchased. Procurement manager also
purchases packing materials along with other necessary materials.

3.6 Process for Receipt of Material

Whenever goods dispatched by a supplier reach our factory, security in charge at the gate
issues a gate inward pass for entrance of vehicle to the factory. After this goods are
unloaded outside the store. These goods are inspected by Quality Control in charges who
take two items as sample from each cotton for inspection. If recommended store in charge
will take all those goods on his record (store ledger card or stock ledger) otherwise if
suitable they are returned to the supplier. If goods once recommended are latter on found

23
to be defective they are burned in the presence of officials from Store, Quality Control, and
Procurement and the goods are removed from the record. Packing materials are of three
kinds; one for free sample medicines, other for domestic commercial medicines and the last
one for international (Afghan) market. Purpose for the burning of packing material is to
avoid possibility of packing substandard products by someone else. Audit report, which
shows overall picture of the organization is very important from the organization, is very
important from the organization point of view. If it is in favor of organization otherwise
tax department will not trust in our accounting records and internal system of control.

The manager of that section or department properly signs whenever any section or
department requires anything they are issued on requisition slip that.

CHAPTER-4

FINANCIAL ANALYSIS

4.1 Financial Statement Analysis

24
 Financial statements are the principal means of reporting the financial condition and
results of operations of a business entity. These statements are meant to assist various
parties in decision making who are interested in the activities of the business. These
statements are means to an end of helping stakeholders in decision-making. To improve the
quality of decision making proper analysis of these statements helps a lot. Financial
statements analysis helps in determining the financial conditions at any particular points in
time and effectiveness of operations of a firm during a specific period.

The various stakeholders of business are interested in the analysis of financial statements.
But the focus of interest of all is not the same.

For example, creditors and credit reporting agencies are interested in finding out the credit
worthiness of the firm to which they have to extend credit. Short term creditors are
interested in short term liquidity of the business and long term creditors are interested in the
long term cash flow which the firm can generate over the long period of time. Investors are
interested in the firm’s ability to sustain profitability over a period of time. Government
agencies analyze financial data for tax purposes. The internal users of financial statements
like management also analyze financial data for planning and control.

4.2 Common Size Analysis of Balance Sheet: (Vertical Analysis)

Common size analysis is an analysis of financial statements where the total assets divide all
balance sheet items of asset side and all credit side balances divided by all liability items,
and all income statement items are divided by net sales/revenues. Common size analyses
are extremely helpful to highlight changes over the time in financial performance and
financial conditions of the company. Common size financial statements help to analyze
and compare a company's performance over several periods with varying sales figures. The
common size percentages can be subsequently compared to those of competitors to
determine how the company is performing relative to the industry.

Table 1 … Common Size Analysis.

AMOUNT COMMON SIZE %

25
ASSETS 2018 2019 2020 2021 2018 2019 2020 2021

Property Plant & Equipment 51,321 90,81 157,033 291,7 26. 35. 3
,369 8,831 ,689 14,486 2 4 7.4 51.8

Unsecured & Interest Free 28,237 26,74 10,096 25,1 14. 10.
,272 9,327 ,190 17,149 4 4 2.4 4.5

Total non current Assets 79,558 117,56 167,129 316,8 40. 45. 3
,641 8,158 ,879 31,635 7 9 9.9 56.3

Stores & Spare 347 16 240 1 0. 0.

,891 0,489 ,350 40,721 2 1 0.1 0.0

Stock in Trade/ Inventory 38,249 44,21 59,118 33,0 19. 17. 1

,278 0,754 ,755 10,570 5 2 4.1 5.9

Advance, Deposits & 52,901 49,21 94,505 132,9 27. 1. 2

Receivables ,854 4,113 ,804 53,961 3 9 2.5 23.6

Cash & Bank Balances 24,284 44,96 98,034 79,3 12. 1. 2

,503 2,257 ,524 83,778 4 7 3.3 14.1

Total current Assets 115,783 138,54 251,899 245,4 59. 54. 6

,526 7,613 ,433 89,030 3 1 0.1 43.7

Total Assets 195,352 256,11 419,029 562,3 10 10

,167 5,771 ,312 20,665 0 0 100 100

Liabilities

Finance Lease 7,073 8,56 9,884 15,8 7. 6.

,270 2,574 ,751 83,962 1 0 3.6 4.1

Deferred Liabilities 1,093 6,45 11,364 13,2 1. 4.

,281 5,461 ,060 80,597 1 5 4.1 3.4

Total non current liabilities 8,166 15,01 21,248 29,1 8. 10.

,551 8,035 ,811 64,559 3 6 7.8 7.7

Short term Borrowing 20,395 7,56 24,110 6,7 20. 5.

,535 1,627 ,117 21,851 7 3 8.8 1.7

Current Maturity of 8,207 8,46 10,672 17,8 8. 5.

Liabilities To Finance lease ,921 2,088 ,658 12,819 3 9 3.8 4.6

Creditors, Accrued Expenses 53,938 101,29 207,049 310,0 54. 71. 7

& other liabilities ,258 6,884 ,333 40,547 8 1 5.6 81.5

Provision for Taxation 7,675 9,98 10,758 16,5 7. 7.

,014 9,333 ,378 49,472 8 0 3.9 4.4

Total current liabilities 90,216 127,30 252,590 351,1 91. 89. 9

,728 9,932 ,486 24,689 7 4 2.2 92.3

26
T. Liabilities 98,393 142,32 273,839 380,2 10 10
,279 7,967 ,297 89,248 0 0 100 100

Share Holders Equity

Capital 10,000 10,00 10,000 10,0 10. 8.

,000 0,000 ,000 00,000 3 7 6.9 5.4

Share Deposit Money 1,133 3,63 3,633 3,6 1. 3.

,000 3,000 ,000 33,000 2 2 0.3 1.9

Accumulated profit( Revenue 85,835 100,15 131,557 168,3 88. 88. 9

reserve) ,888 4,804 ,015 98,417 5 0 0.6 92.5

Total 96,968 113,78 145,190 182,0 10 99. 9

,888 7,804 ,015 31,417 0 9 7.7 99.8

Source: Annual Report 2018----2021

4.3 Common Size Analysis of Income Statement: (Vertical Analysis)

A common size income statement is an income statement in which each line item is
expressed as a percentage of the value of revenue or sales. It is used for vertical analysis, in
which each line item in a financial statement is represented as a percentage of a base figure
within the statement.

Common size financial statements help to analyze and compare a company's performance
over several periods with varying sales figures. The common size percentages can be
subsequently compared to those of competitors to determine how the company is
performing relative to the industry

AMOUNT COMMON SIZE %

Items 2018 2019 2020 2021 2018 2019 2020 2021

Net Sales 1,075,837 1,334,887

767,501,430 791,344,113 ,800 ,661 100 100 100 100

Cost of Sales (760,071, (986,163,

542,594,057 559,079,159 293) 760) 70.7 70.6 -70.6 -73.9

GROSS PROFIT 315,766,5 348,723,9

224,907,373 232,264,954 07 01 29.3 29.4 29.4 26.1

OPERATING EXPANSES

Administrative (58,359,3 (68,304,2

43,596,973 44,235,947 26) 80) 5.7 5.6 -5.4 -5.1

selling And Distribution 154,277,064 152,327,340 (206,120, (215,535, 20.1 19.2 -19.2 -16.1

27
 858) 955)

Total (264,480, (283,840,

197,874,037 196,563,287 184) 235) 25.8 24.8 -24.6 -21.3

NET PROFIT FOR THE 51,286,32 64,883,66

YEAR 27,033,336 35,701,667 3 6 3.5 4.5 4.8 4.9

Financial expanses (4,202,71 (6,571,36

(3,850,195) (4,354,292) 2) 6) -0.5 -0.6 -0.4 -0.5

Other income - 123,942 538,325 10,862 0.0 0.0 0.1 0.0

PROFIT BEFORE 47,621,93 58,323,16

STATUARY PROVISIONS 23,183,141 31,471,317 6 2 3.0 4.0 4.4 4.4

Othee Operating Expanses (3,051,82 (3,481,74

(1,591,000) (2,130,985) 0) 4) -0.2 -0.3 -0.3 -0.3

PROFIT BEFORE TAXATION 44,570,11 54,841,41

21,592,141 29,340,332 6 8 2.8 3.7 4.1 4.1

Provision For taxation (13,167,9 (18,000,0

(7,675,014) (15,021,416) 05) 16) -1.0 -1.9 -1.2 -1.3

NET PROFIT FOR THE 31,402,21 36,841,40

YEAR AFTER TAXATION 13,917,127 14,318,916 1 2 1.8 1.8 2.9 2.8

Source: Annual Report 2018---2021

Data Collected From Annual Reports Of Alpenglow Pharmacy, Years(2018, 2019,

2020, 2021)

4.4 Financial Ratio Analysis

Financial Ratio Analysis is the amount and proportions of one thing compared to another in
mathematical terms. This ratio analysis is very useful and helpful for evaluation of
company financial position and performance of their business; this also provides useful
comparisons of a company with the overall industry. Financial ratio analyses are used to
measure the magnitude of profitability, Asset Utilization, liquidity and Debt Utilization.

Ratio analysis may provide accurate results for long term planning.

There are certain basic ratios that are frequently used; these ratios can be placed into six
different classes.

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 i. Liquidity Ratio

ii. Leverage Ratios

iii. Activity Ratios

iv. Profitability Ratios

1) Liquidity Ratios
a) Current Ratio

This shows a Firms ability to cover its current liabilities with its current assets.

Current Ratio = Current Assets

Current Liabilities

Table 1…

Years 2018 2019 2020 2021

C.Assets 115,783,5 138,547,6 251,899, 245,48

26 13 433 9,433

C.Liabilities 90,216,7 127,309,9 252,590, 351,12

28 32 486 4,689

Current Ratio 1.28 1.09 1.00 0.70

The Current Ratio of Alpenglow in 2018 1.28 and is decreasing every year and in 2021 it
reaches to 0.70 as compared to 2018 is because of the firm increased liability from 2018 to
2021.A decline in ratio can be attributable to an increase in short term debt.

2) Leverage Ratios

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 a) Debt-To-Equity

This shows the extent to which the Firm is financed by Debt.

Debt-To-Equity = T. Debt x 100

Shareholder’s equity

Table 2…

Years 2018 2019 2020 2021

Total Debt 98,393 142,327, 273,839, 380,289,

,279 967 297 248

Shareholder’s Equity 96,968 113,787, 145,190, 182,031,

,888 804 015 417

Debt-To-Equity Ratio 1.01 1.25 1.89 2.09

The Debt-To-Equity ratio Alpenglow in the four years has been increased, in 2018 it was
1.01 and increased to 2.09 in 2021.The increase in the Debt is for the expansion of business
as the company is not able to generate more cash from their investments. A high debt-to-
equity ratio indicates that a company may not be able to generate enough cash to satisfy its
debt obligations and is financed by Debt.

Debt-To-Total-Assets

Shows the percentage of the firm’s assets that are supported by Debt Financing.

Debt-To-Total-Asset = T. Debt

T. Assets

Table 3…

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Years 2018 2019 2020 2021

Total Debt 98,393, 142,327, 273,839, 380,289,

279 967 297 248

total assets 195,352, 256,115, 419,029, 562,320,

167 771 312 665

Debt-To-Total-Assets Ratio 0.50 0.56 0.65 0.68

Source: Annual Reports (2018-2021)

The Debt-To-Total-Assets ratio of Alpenglow in the four years has been increased; in 2018
it was 0.50 and increased to 0.68 in 2021. It indicates that a higher percentage of assets are
financed through debt. This means that the creditors have more claims on the company's
assets.

3) Activity Ratios

a) Total Asset Turnover Ratio

This ratio indicates about the firm’s effectiveness in utilizing its assets to generate sales.

Total Asset Turnover = Net Sales x 100

T. Assets

Table 4…

Years 2018 2019 2020 2021

Net Sales 767,501, 791,344 1,075,837,8 1,334,887,

430 ,113 00 661

Total Asset 195,352, 256,115 419,029,3 562,320,

167 ,771 12 665

Total Asset Turnover 3.93 3.09 2.57 2.37

The Total Asset turnover ratio of the Alpenglow Pharma Company is decreasing over time

to time in 2018it was 3.93, in 2019 it was 3.09, in 2020 it was 2.57, and in 2021 it was 2.37

31
and clearly shows the difference of 1.56 between 2019and 2021. One reason for having a

low total asset turnover ratio is bad acquisitions. They make purchases and they end up

generating weak asset returns.

b) Gross Profit Margin Ratio

This indicates the efficiency of Operations and Firms Pricing policies.

Gross Profit Margin = Gross Profit

Net Sales

Table 5…

Years 2018 2019 2020 2021

Gross Profit 224,907,3 232,264,9 315,766,5 348,723,9

73 54 07 01

net sales 767,501,4 791,344,1 1,075,837,8 1,334,887,6

30 13 00 61

Gross Profit Margin 29.3 29.4 29.4 26.1

The Gross profit Margin Ratio of this company is same for the three years i.e. 29% for the
2018, 2019, and 2020 but in 2021 it decreases to 26% and face about 3% decrease . Gross
profit margin is the difference between the revenue and cost of goods sold. The decrease in the ratio
is because that the company generates less revenue than the cost of the goods.

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 4) Profitability Ratios

a) Return on Equity

This Ratio indicates the profitability to the shareholders of the firm (after all expenses and
taxes).

ROE = Net profit after Tax

Shareholders equity

Table 6…

Years 2018 2019 2020 2021

Net Profit After Tax 13,917,1 14,318, 31,402, 36,84

27 916 211 1,402

Shareholders Equity 96,968,8 113,787, 145,190, 182,03

88 804 015 1,417

ROE 0.1 0.1 0.2 0.2

(2018-2021)

The ROE of the company which I evaluated is same for the two years and increased by 1%
for the next two years in 2018& 2019 it was 0.1 and in 2020 % 2021 it increased to 0.2
because of the reasons that the company has improved the
Use more financial leverage. Finance themselves with debt and equity capital.
Increase profit margins
Improve asset turnover.
Lower taxes

b) Return On Investment

This Ratio indicates the profitability on the Assets of the firm (after all expenses and taxes).

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ROI = Net Profit after Tax

Total Assets

Table 7…

Years 2015 2016 2017 2018

Net Profit After Tax 13,917,1 14,318,9 31,402,21 36,841,

27 16 1 402

total assets 195,352,1 256,115,7 419,029,31 562,320,

67 71 2 665

ROI 0.1 0.1 0.1 0.1

(2018-2021)

This ratio measures the profitability per rupee of investment in assets. Stanley ROI has shown no
improvement. In 2018 it was 0.1 and remains same till 2021. Although the assets of the company
are increased but the Recovery from the assets remain same (not increased).

CHAPTER-5

SWOT ANALYSIS

SWOT analysis stands for Strengths, Weakness, Opportunities and threats analysis of any
organization. It studies both the internal and external environment. In case of Internal
Environment Strengths and Weakness are studied where as in External Environment the
Opportunities and Threats are looked after and further steps taken.

5.1 Strengths

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Each organization evaluates its strength and weaknesses periodically. Reviewing the
business marketing reports, competency, reputation etc does it. These factors are rated as
major strengths. Following are the main strengths of Alpenglow Pharmaceuticals.

1. Financial Soundness

Alpenglow Pharmaceuticals has a good financial position through which the company can
overcome rainy days.

2. Brand Awareness

Alpenglow Pharmaceuticals has the advantage of brand awareness amongst its customers
on the basis of which the company has got a competitive edge over its competitor in the
market.

3. Low Cost of Production

Alpenglow Pharmaceuticals enjoys economy of scale in production and distribution of the

medicines.

Alpenglow Pharmaceuticals is one of the best and largest pharmaceutical companies. It has
good reputation due to best quality products

4. Working Condition

Working condition in any organization affects the efficiency and effectiveness of the
employees. The factory offices and worker rooms are centrally heated in winter and air
conditioned in summer. This increases performance of the employees.

5. Latest Technology for Production

Due to future challenges the company uses latest technology which has increased its
capacity and quality at the same time.

6. Social Objectives of the Company

35
Alpenglow Pharmaceuticals plays role in the development of the economy and
conservation of the environment as it is most important concern for all humans.

5.2 Weaknesses

Besides being competent and challenging all departments have weaknesses. It always has a
room for improvement and tries to minimize, if not eliminated as soon as possible.
Following are main weaknesses of the company.

1. Theoretical Policies

Health and safety policy as narrated to be followed in books only. Besides workers officers
also in routine do not even adopted the policy.

2. Communication Gap

There is a communication gap in the company which may causes disaster in the
organization.

3. Lack of Computer Knowledge

Computers are a necessity of this modern age but there are only few computers in the
company. Whole of the accenting records are kept manually.

4. Selections and Recruitment

Many of the employees are low educated and lack the required skills. This is because the
candidates with strong background are recruited at the cost of qualified candidate being
left.

5. Performance Appraisal

The lack of proper performance appraisal may cause following problems:

Lack of interest in the job

Inefficiency of employees

36
Subjectivity in the organization is very high etc.

5.3 Opportunities

Opportunities are best where probabilities of success exist. Following are the main
opportunities available to the company.

1. Urbanization

Urbanization grows at a high rate that is good for the company.

2. Reconstruction of Afghanistan

With the reconstruction of Afghanistan the possibility of growth and exports may increase.

5.4 Threats

Doing good business does not mean that the factory has a firm footing in the market. To be
on defensive, the factory should always expect challenges and try to formulate such
policies, which would effectively keep it in the Pharmaceuticals.

1. New Competitors

Entry of new competitors in the industry can cause problem and affect the sales.its the
biggest threats

2. Price Reduction by Competitor

Distributors try to purchase those products, which are of best quality and low prices. There
are many competitors in the sector who reduce their products prices, which may cause
problems for the company in the long run.

3. Law in Order Situation

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Law in order situation in the country is growing from bad to worst. Which is a dangerous
alarm for all kinds of investors?

4. Better Marketing Strategies used by Competitors

Most of the new companies use betters marketing strategies, i.e. they give calendars, pads,
billboards pens etc. to the stockiest and shop keepers.

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 CHAPTER-6

CONCLUSION, FINDINGS AND RECOMMENDATIONS

6.1 Conclusion
Alpenglow pharmaceutical is one of the fastest growing medicine companies in Pakistan.
To fulfill my university degree requirements; I completed my internship program there at
finance department and also in HR department. I got to apply what I’d learn at the
university and much more then what I first intended.

The Financial Analysis of the Alpenglow Pharma shows that the company is growing at a
rapid pace and its operations are well managed, but there are still lot of areas that could be
improved which I have stated in Problems & Recommendations.

The purpose of this report is to give a detailed of overall view of the company. It includes
an in-depth analysis of company’s technical, financial, marketing, Human Resource and
Operations. SWOT analysis and ratio analysis has been carried out with great care and
further Recommendations to improve the operations of company are given at the end of the
report.

I got to learn a lot about the company, its marketing, HR, Finance and Operations
management. I performed the tasks that were assigned to me, to the best of my ability and I
am grateful for the opportunity.

 After discussion of various departments now the most important effort has been
taken to analyze the functions of the departments where I have worked during my
internship. During this period I have noticed following things.

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6.2 Findings

a) Burden of the Work

There is a lot of work burden on employees of the Finance Section due to less number of
employees in the department and complication of the work.

b) Lengthy Procedure
There is very lengthy procedure adopted for the disbursement of the funds and carrying out
of routine jobs.

c) Recruitment and Selection

Though the policy is that selection and recruitment will be purely on merit but in practice
the selection of employees is not done of merit. Many of the employees are low educated
and unskilled.

d) Training and Development

The commitment of the organization for training and development of employees is low.
On the job training or pre-service is usually not provided apart from some exceptions.

e) No Delegation of Authority

A manager supported by Assistant Manager heads almost every department. The Assistant
Managers are responsible for all the activities of the department. But when they come to
authority, the managers use it by themselves that is there is no proper delegation of
authority.

f) Lack of Coordination

Teamwork is vital and important aspect of the efficient and smooth running of any modern
organization. During my internship, I observed that there is no harmony and coordination
especially between higher and lower staff.

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 g) Advertising

Advertising is the activities that introduce the product in the market. But the company’s
marketing department in this regard is not active of to the first extent.

6.3 Recommendations
a) Work Load

To avoid workload they should ask for more employees of level, they can go well with one
too. They should promote existing employees to higher positions and hire new employees
for the vacant posts.

b) Computerized System

Accounts department should be fully computerized. It will simplify the job and make the
operations effective and efficient.

c) Internal Audit

The Process of internal audit should be conducted in phases after the completion of the
concerned phases.

d) Selections and Recruitment

Hiring process and job description should be modified and improve. One of the cost
effective method is to be adopted to select competent employees.

e) Online Advertising

The Internet today has brought great opportunities for companies that want to reach local as
well as global marketing campaign. The company should advertise its products online.

For the region of KPk. the cable network television can be positively used for the people
though emphasizing on medicine. local advertising. These cable networks now reach the
far away areas of the kpk

41
6.4 Your activities in the organization
Nature of work you undertake at the organization
I work there at administration and accounts / marketing but I spent most of my time at
administration and in finance.

At accounts section I perform different activities such as vouching, recording and posting
to ledger accounts.1st of all when we receive the bill from supplier, we make voucher for
that bill on a blue paper that we called journal voucher, for cash receipts and payments we
make cash receipts and cash payments voucher. When we make voucher we forward it to
finance manager he checked and then approved it. After checking and approval we make
journal entry and record it in journal. After recording the next step is to post this entry into
ledger and its subsidiary ledger accounts. After posting we sent the books to internal
auditor he carefully examine it and if there is an error he point out that error and we make
correction. At the end of period we make the trial balance of such books.

7.5 What did you learn in the organization?

I learn more over there, such as its internal affairs, dealing with banks, and suppliers about
his management hierarchy, about his mission and vision statement. I also came to know
that it purchase some raw materials from foreign countries for the payment of such
purchases they uses letter of credit. I also know about its bank dealing that how they deal
with banks. Before recording we make voucher of a bill. There we use three types of
vouchers

1 Journal voucher
2 Bank receipts voucher
3 Bank payments voucher
I know about the recording process of the organization and also about its posting into

Ledger and its subsidiary ledger account, and then into trial balance.

Moreover I get knowledge about its products. It produces four types of products

1 Tablets

42
2 Syrups
3 Capsules
4 Drops

I know about the recruitment process of that organization I also perceive the behavior
of staff members I also know about the payment system of that organization to workers
such as salaries, bonus, and overtime etc.

43
BIBLIOGRAPHY

 www.Alpenglowpharmaceuticals.com

 Discussions with employees

 Organization Manual

 Previous report on Alpenglow Pharmaceuticals

 Personal Observations within the Organization

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