Case Study On Novarrtis India

As focusing on each of the five management assertions for the inventory account, we discovered that there are some risky areas that indicate the need for further attention during the audit. First of all, for existence or occurrence, all items in the inventory account must physically exist and be available for sale. Thus, the auditors should physically count finished goods, copper rod, and plastic inventories, and determine actual increase of inventories at year end. Also, they should select items from the inventory ledger and locate them and reconcile the quantity. Second, for completeness, the auditors should make sure that all existing inventories have been recorded completely , go around the warehouse and ensure all the inventories are recorded in the inventory ledger. Third, for valuation or allocation, the auditors should make sure that Laramie Wire manufacturing sticks with one valuation method(For inventory items, valuation is based on the lower of cost or market value, with several alternative methods for calculating cost), find out if there is any scrap inventory that needs to be recorded and written off ,and ask about obsolescence items. Fourth, for rights and obligations, the auditor should ask them if there is any consigned inventory at their warehouse. If there is, those inventories should not be recorded in the company's inventory ledger. Finally, for presentation and disclosure, the auditors should review the company's financial

The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).

Office Depot uses multiple inventory strategies to order products. 90% to 95% of goods are ordered through automatic replenishment, manual replenishment, pull replenishment, and global sourcing are also used depending on channel, volume, velocity and cost. (Office Depot, 2015). The accuracy of the inventory from both a DC and store perspective is critical to the organizations success. Heizer and Render (2014) state that record accuracy is a prerequisite to inventory management, production scheduling, and sales. Accuracy is maintained by either periodic or perpetual systems (p.479). In Office Depot, the stores are required to cycle-count technology items such as laptops, desktops computers, and tablets five days a week. Discrepancies are entered in the system and bounced off the local DC’s on-hand inventory discrepancies. Office Depot is a “blind receive” organization meaning the stores receive pallets of products and simply unwrap and put them away. The only way a store knows if a product is missing is through the cycle-count program. This system was put into place to speed up the receiving process and eliminate unnecessary steps once the product was received at the store level. Office Depot conducts a full physical inventory once a year through a third party and trues up the inventory shrink at this time.

Interestingly enough, there were some influences in the external environment that would affect the relationship with Astra. Much like other industries in 1990s and early 2000s, the pharmaceutical industry responded to the challenges of globalization and smaller companies merged to form large conglomerates to create worldwide strength. (Kyriazis and Swayne) Astra merged with Zeneca, increasing the international exposure of the new merger as the seventh largest pharmaceutical company in the world. In such a situation, AstraZeneca had Colazide low on their list of priorities and attempted to return the licensing to Salix. This would require some adjustments and avoidance of legal implications on the part of AstraZeneca, which led to their payment of Salix’s full contract and lending for acquisition of another partner.

Founded since 1997 by Dr. Nathan Swan, Chem-Med was the second largest manufacture of FDA-approved sodium hyaluronate (HA), behind Pharmacia, Inc. April 9, 2008, Dr. Swan started to worry about his company’s financial situation and he was thinking about getting more investors or going to the bank for financing. For him, “Chem-Med was growing and making money, but it never seemed to have enough cash”. For any investors who are interested in the company, it is important to analyze many vital aspects of profitability, future growth, risks, and comparison before adding Chem-Med to his portfolio.

Questcor Pharmaceuticals was founded after the merger between Cypros Pharmaceuticals Corporation and RiboGene Inc. The company then acquired Aventis Acthar Gel. To ascertain whether this company could be acquired by Embry Investment Group (EIG), the study undertook to review Questcor Pharmaceutical Inc. annual reports from the year 1996 to 2001. The study has nevertheless reviewed the company's 2012 third quarter financial results. The study showed that the company's share value was increasing from the time it was incorporated. Its gross profit was also on an upward trend from 1996. This makes the company suitable for acquisition by Embry Investment Group.

One way of monitoring the inventory system better is by setting up items on an autoreplenishment system. Autoreplenishment would be setting minimum and maximum levels for the inventory to be met. For instance,

The company operates in three segments: consumer, pharmaceutical, and medical devices and diagnostics. Their products range from

Select a location and observe the counting of the physical inventory to examine if the percentage of inventory value the management comes up with is reasonable.

Perpetual inventory system is great and fast way for the business to carry on, however it can also lead to wrong numbers of stock by scanning the same product several times. Conducting a stocktake once a week if possible is important to check that everything is in place.

Second, there is no check on inventory before the warehouse picking and shipping the goods. If the stock on hand is not enough for the sales, the customers should be notified.It is suggested to have inventory control.

Biovail Corporation was a large publicly traded pharmaceutical company located in Canada which merged with Valeant Pharmaceuticals International, Inc. in 2011 (SEC, 2011). Said organization engaged in the development and large-scale manufacturing of pharmaceutical products (Chapman, 2009). As such, products were shipped to domestic and international distributors with products to United States customers shipped via truck transport.

MRP was developed in the 1970’s as an inventory management system. The principle relied on conducting detailed planning to ensure that parts and materials ware obtained in time to meet the manufacturing process. It was a major step forward at the time as it capitalized on the use of the computer to generate the supply orders. (rf) The use of computers allowed operations managers to track supplies orders, obtain secondary materials and enabled precise stock levels to be measured easily. Now almost all MRP systems use computes. This led to companies creating production schedules that focused on obtaining resources to match the output level of production. (rf) Using MRP managers can determine what materials are required in what quantity and by what deadline. This is known as a push system of inventory control and involves forecasting inventory needs to meet

Following the sale of their baby food business to Nestle for $11.9bn in April 2012 and spinoff of its shareholding in Zoetis, the company is aiming to focus on their core business of pharmaceutical medicines and thereby improve market share.

1. Visits: There should be more visits and lecture tours by leading Indian and Australian jurists to each other's country. The Australia India Council has begun this process. It has arranged for me to return to India in January 1997 to give lectures in New Delhi, Bombay and Bangalore. Through the good offices of my friend, and colleague in the International Commission of Jurists, Mr Fali Nariman, the Bar Association of India has invited me to deliver a lecture in its annual series. The Australian legal profession should reciprocate. It is hoped that the Chief Justice of India, or a Justice of the Supreme Court of India, will, later in 1997, give return lectures in Australia. Legal links have been established between India and lawyers from