INTRODUCTION TO BUSINESS
FINANCE
ACCOUNTS
RECEIVABLE
MANAGEMENT
ASHFAQ SOLANGI
AYESHA MOTI
The heart of our report is based
on the findings from the
interview conducted with MR.
Muhammad Fahad Arzani.
We have tried our best to
present all the necessary
information required in this report.
INTRODUCTION
Novartis is a world leader in the
research and development of products
to protect and improve health and wellbeing. The company has core
businesses in
pharmaceuticals,
vaccines, consumer health,
generics, eye care and animal health.
VISION AND MISSION
To discover, develop and successfully
market innovative products to prevent
and cure diseases, to ease suffering
and to enhance the quality of life.
CHIEF FINANCE OFFER
HOD.FRA
HEAD OF SCM
HOD BPA
R.M
MANAGER
MANAGER
L.M
AM
AM
LOGISTICS
A.M
EXECUTIVES
EXECUTIV
ES
WAREHOUSE
WORKER
EXECUTI
VES
ACCOUNTS RECEIVABLE
It is a legally enforceable claim for payment
from a business to its customer/clients for
goods supplied and/or services rendered in
execution of the customer's order.
Accounts receivable is shown in the
balance sheet as an asset.
These may be distinguished from notes
receivable, which are debts created
through formal legal instruments called
promissory notes.
CREDIT POLICIES
In Novartis credit policies are very
different as they have big
institution as their clients so they
have set their credit policies as
accordingly, and they give credit to
the institutions on the basis of
their past six months orders and
dealing.
By taking the average of past six
months a client is offered credit.
Military institutions like CMH etc are
offered credit at 90 days
where as all other institutions like:Agha khan,
SIUT,
Liaquat National
are offered credit at 45 days.
They dont offer discounts as they have
good products and reasonable price
approved from ministry of health.
Even if they want to allow discounts they
have to follow a lengthy procedure for it
with in the company so normally they
avoid it.
All Novartis Group affiliates engaged in the promotion of
prescription pharmaceutical products to their respective
customers must adhere to companys practice policies and
guidelines based on the following principles:-
1.All Hospitals Promotional practices must
accurately reflect the benefits and risks of a
medicine. They must be ethical and genuine.
2.Any information, the hospitals require must
consider the needs of customer. It must be based
on product information as approved by local
authorities.
3.Sponsorships of medical or scientific events must
be clearly disclosed, and the events purpose must
be sharing relevant medical or scientific
information.
4. Hospitality must be appropriate,
modest, consistent with local practices
and secondary to the main purpose of
any meeting.
5. Should offer No bribery. Also, Gifts
may be given by them only when local
standards permit it. Gifts must be
inexpensive compared to local
standards, relevant to the practice of
medicine and may only be given
6. Should prohibit any personal incentives to
prescribe products.
7. Samples may only be required to help
healthcare professionals become familiar
with a product. This must adhere to all local
requirements.
8. All interactions and activities must comply
with applicable local laws and regulations.
9. Should have good past records.
10. All preceding huge loans should have
been paid-off.
Novartis global standards represent the
companys minimum compromising standards,
and each Novartis division has specific
standards. For example, the Novartis Pharma
Principles and Practices for Professionals (NP4)
governs how associates in our largest division
conduct business and interact with customers,
including promoting medicines to healthcare
professionals.
All Novartis divisions have similar
policies, and the Novartis Group Audit
team works to ensure compliance with its
customers.
To assure compliance, Novartis
periodically audit the promotional
activities of their local sales and
marketing organizations.
Novartis employees have been
directed to report actual or
suspected instances of misconduct
to the office of our Business
Practices Officer.
RECOVERY POLICIES:-
They have little problem from
government institutions in their
recovery so they have to adjust
with them as they are run by
government so they have to take
that into consideration.
The rest of institutions are good
at paying back even if they resist
the Novartis issue them
DUNNING LETTER .
DEFAULT RATE:-
Since, seven years their default
rate has been zero.
As they have big clients who
already have a very good
reputation in market so they are
very good at paying back their
credits on time. Whereas for as
their distributors are considered
they have collection contract
with them their big distributors
do collection the companys
CONCLUSION
As Novartis is big pharmaceutical
company in Pakistan so they also
have big clients who also have a
very good reputation in market so
they do not have any issue in
recovery and have almost zero
default rate. .
Over they follow conservative
approach with low risk but they
have moderate profit.
