Summary of HISCO Annual Report

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Summary of HISCO Annual Report

Letter from the Chief executive Officer

The Chief Executive Officer

2056^th Street

New York City

[email protected]

25^th March 2020

HISCO LIMITED COMPANY

2056^th Street

New York City

[email protected]

Dear Shareholders

I am writing this letter to give you an overview of the activities of the company, and also appreciate the various stakeholders.   I am deeply indebted to our shareholders, employees, suppliers, customers and the community at large, for plying a critical role in realizing the objectives of the company. Whereas, I succinctly committed my time and energy and expertise to ensure that the vision of the company is delivered, it would have not been possible were it not the great support that I receive on a daily basis from the stakeholders.

             As an accredited manager, I appreciate the fact that corporate management is key to the success of the company. In fact, at HISCO, this is part of our strength, and the reason as to why we have maintained our position in the market. Coupled with this, is the vision to be an excellent world class company, delivering indisputably top-quality medical delivery, while constantly but progressively changing the experience of the customer. As a player in the medical sectors, which happens to be one of the most critical sectors in the economy, understanding the rules of regulations in manufacturing the medical devices is key to us.  Besides, we must also be able to perfectly complement the supply chain without day-to-day operations, to ensure that no vacuum is left at any single time. Despite the pandemic which hit public and private sectors alike very hard, we appreciate this core mandate, and worked tirelessly within these parameters to deliver to our esteemed customers. I am happy to report that our employees fully understand and appreciate our role in the market and economy at large.

            HISCO Limited has maintained a culture of team spirit which has led to high level of innovation. Our innovative measures are mainly supported by our significant investment in technology and research. The company has also maintained a culture of sustainable operations, while appreciating that the same environment is needed not only presently, but also in future. So as to practically implement this, the company has maintained consumption of environmentally friendly fuels such as electricity and solar. Similarly, the company’s, management have consistently financed and supported safe disposing of the waste products.  The company has been able to keep alive the needs of the company, as the chief propeller of production plans and vision. Our primary strategy has been, and remains operational integrity, and participatory management. Though the company   faces a very stiff competition from, it has maintained truthful promotion without tainting the picture of other companies.

            The company has been a major player in the market for a number of years. Consequently, we have been able to learn over time, the best ways through which the interest of our customers can be served.  As such, we   have been able to serve our customers through focus on sustainable relationship. This has been achieved through focus on high level of quality products, constant and regular market research, investment in high level of innovation and technology.  The company has also been able to progressively develop and enhance the skills of its workers through regular training, exhibitions and conferences.  In the past five years, the company has   focused mainly on production efficiency and improvement of customer satisfaction. All the stakeholders appreciate that medical services are very critical.   The company therefore, tries its level best, to strike a reasonable balance between profit maximization and service delivery.

            The medical readers which are the main products for the company is key in medical sector.  The market for these products has grown overtime, increasing our market cover considerably.  As a result of this, there is an urgent need of remaining competitive in the market. Quality readers will enable clients to also remain compliant, and be able to improve lives of people who seek their services. It is because of this reason that the company has been increasing its rate of investment in technology and innovation, so as to capitalize on the available opportunity.  As a strategic sustainable relationship vision, the company shares freely with its customers the necessary technical information.  Similarly, the company receives feedback from its customers, which informs the subsequent production initiatives.  This is done to ensure that, our good meets the exact needs of our customers. It is worth to note that quality products which meets the needs of customers, has earned the company a great level of loyalty.

             As had   been mentioned earlier, the company has been able to maintain a high level of corporate management. One of the ways through which this is realized, is by sharing the feedback from the clients by the management as well as shareholders.  The investors therefore, have a full picture of the technical operations of the company. The feedback received from customers have helped the company in maintaining a cost-effective supply chain.  The low operational cost can be attributed to the fact that the company has also been able to automate the whole process of moving goods from the company to the final consumers. The process is also very simple, and can be easily understood and implemented by all the parties involved. 

The company would like to appreciate the high level of innovation that is evident in the environmental department.  Through their innovative ideas, the company has been able to redesign the medical reader as per the market feedbacks.  The redesigned medical reader has increased our rate of operation by approximately thirty percent. Due to high level of speed in serving our customers, the company has ben able to increase its market share by about 50%. We are currently working towards widening the functionalities of the medical readers. We vision that very soon, our medical readers will be able to offer administrative services, nutritional control, as well as hospital day to day maintenance.

It is a fundamental principle that the acceptable codes of conduct be maintained when delivering products and services in the industry.  At HISCO Limited, we are at forefront when it comes to maintaining high level of moral standards in trade.  Integrity is stressed both at the time when employees are absorbed into the company, as well as the time when they are assigned responsibilities to discharge on behalf of the company.  The company has maintained a culture when high level of moral standards are part and parcel of our character, and not an instilled thing. Regular trainings are also conducted on how to maintain high level of ethics and integrity.  Throughout our years of operation, the company has been able to maintain high level of trustworthiness, equality, transparency and integrity.  Our medical readers have been designed such that the users’ lives are not put at risk, when they use them.  Further, the company has maintained a multinational face, with zero tolerance to unethical practice.  The human rights, as well as the   international labor laws are observed to the letter.  As a result of this, the company has been able to foster a very health relationship both horizontally and vertically.

 As per the aforementioned vision, HISCO Limited company has exhibited a prospective growth, both in terms of financial and non-financial productivity.  Whereas the company has been able to maintain a consistent profit growth, there has been a liquidity challenge. However, the company’s financial management department, have worked tirelessly, to ensure that we remain afloat. In the immediate past financial year, the company has faced a drastic reduction on its cash flows, as well as its comprehensive income.  We had however, projected that we would maintain a consistent growth during this period.  This was however, curtailed by the pandemic which hit the economy very hard. While it is true that the shareholders may be discouraged due to this trend, we as the management team would encourage    courage.  In the wake of the new year, we have witnessed steady and progressive growth, which signals quick recovery to the dismal performance in the past three quarters.

The management team is very confident of resuscitating the company, and bringing back on track in the next few months. Short- and long-term strategies have already been formulated to realize this.  Key amongst ways through which the performance   level will be corrected is through efficient cost management. Both the cost of production, as well as the marketing costs will be properly managed to ensure that the retained amount   remains high.  I am happy to report to you that in the first quarter of 21A, the gross profit for the company rose from $ 342,105.12 to 560,585.12. This is a growth rate of approximately 52%.   The reduction in net profit therefore, can be attributed to high cost of operations, and not production. As at fourth quarter, the project cost had risen to $ 716,555.87.87. This consequently triggered a rise in revenue. The management has noted that, the bulk of the cost, which led to a reduction in the net income mainly came from operations.

 Some of the specific items which led to a drastic reduction in net income include; advertising, marketing, manufacturing, office rents, electricity, water, other office utilities and lead six sigma. These being fixed recurrent expenditures; they are there to stay.  The management is however, confident of revenue growth in the upcoming years, which will counter the high costs of operations. Due to the expected growth in the near future, the management   is working as a team, to ensure that product improvement, and technological innovation are all set.  From the recent market research, it is very evident that the future is bright, despite the economic challenges that the world economy is constantly facing. The main focus currently is improvement of the medical services produced at economical cost. It is worth to report that the steady revenue growth can be attributed to the fact that we have faced a steady growth in the level of sales. The management is focusing on locating products from products which are reliable, with a steady growth in popularity.

From the Strength Weakness Opportunities and Threats (SWOT) analysis we did in the recent past, we noticed that there is a high need of medical readers in the health sector.  This is an opportunity which works to our advantage, and we therefore intend to seriously capitalize on it, to ensure that we grow our market levels and revenue thereof.  The market research has further indicated that the demand is leaning towards quality medical readers. Devices which support the life style diseases are even on higher demand. For example, products which are used cardiovascular, body fluid management, surgical procedures, respiratory procedures, orthopedic and other diagnostic diseases are on very high demand.  Also on high demand is the devices which are used in in patient management. Our production will therefore, be defined to meet this high demand in the market.

As management team, we register our sincere appreciate the commitment of shareholders. Your commitment, innovation and general support is immeasurable. Though our focus is strategic in nature, there is need to also focus on short term issues which cumulatively contribute to long term objectives.  The management I has put a request that the immediate needs of the company also be put into consideration, when financing decisions are being made. We need ideas of  the shareholders, as well as creativity, to enable us propel the company to the path of success.  Based on the value of our products, as well as market position, we belief that what we give the market is cost effective, and that our medical devices remain the top brands. 

The management is doing their level best in ensuring that we remain indisputably market leaders. We therefore urge all our stakeholders to be proud to be associated with the company. We alike urge our employees to proudly perform their assigned roles, even as each and everyone of us foster team work, in a bid to achieve the set goals of the company.  Though the future seems bleak, to us it is a bright one, as threats also provides opportunities for   high level of creativity. We hope to propel the business to success in this coming year. We have prepared our financial statements as per the statutory requirements and made them available for perusal of all our stakeholders. We look forward to continuous partnership.

Yours Faithfully

Jeff Kennedy

The Chief Executive Officer

Sales, Marketing and Industry

Overview

            The term sales, is used to define all the activities hat lead to selling of goods and services. Marketing I on the other hand, refers to activities that promote the sales of a particular good or service. it entails informing the market about the existence of a product, reminding the market about the existence of a good or service, informing the market about a new component which has been introduced among others (Da, & Woo, 2018).  Marketing can also be used to train the consumers on how to utilize a new component. it is therefore evident that the main ai of a marketer is to interest the market towards a particular good or service.  Sales and marketing are some of the tools that used to gain market advantage through enhancing the popularity of a particular product.  It is however, worth to note that sales and marketing tends to have cost implications, which are deducted from the gross profit.  The cost of marketing therefore, have the effect of reducing the net profit that a company would have otherwise reported.

            industry on the other hand refers to a group of companies with similar activities.  The activities of a group of companies could either be similar or almost similar. One needs to know the industrial trend for them to be able to survive within the market. Industrial trend can either be studied or be observed. the industrial trend is very key to the success of a company, as it determines the realizable revenue and profit thereof (Hsu et al.,2020). A company must also learn the industrial trend for it to be able to survive within it.  It is worth to note that the industrial trend could make a company to find it difficult to survive, leading to what is known as natural selection. Natural selection is the automatic inability of a company to survive due to its inability to meet certain trends. Such companies will therefore, either cease to operate or realize remarkable losses leading to their closure.

Innovative Products

            Depending on how competitive the industry is, high level of innovation could be needed or not. According to et al., (2019), innovation is the act of coming up with new ideas which either increase the quality of a product, or make the customers to be prefer it above other types of goods and services.  Innovation makes the products of a company to be preferred, as customers would definitely satisfy more, when the consume more quality goods and services. Companies with high level of innovation are able to see opportunities ahead of the rest and move to capture them. The size of the market, as well as the level of investment in technology and research also determines how innovative a company or a group of companies could be.  The main objective of a profit-oriented organization such as HISCO Limited company is to maximize profit.  In promoting its products in the market, the company must therefore, ensure that they did not deviate from this objective which is also very critical.

             HISCO Limited has been able to innovatively serve the market within the borders of profit maximization. As such, the company ensures that the resources used in promotion, and production are economical.  The economical resources that the company is using in realizing its objectives include; labor, time and production. These are used in in meeting the needs and fain through an implied value, as well as benefits. using these low-cost resources that the company has been able to meet the quality. One of the ways through which quality can be enhanced is through a critical focus on the supply chain, otherwise referred to as value chain analysis.  Supply chain refers to the channel that a good or service follows, from the manufacturing point to the final consumer.  For multinationals such as HISCO Limited, there is need of constant, and continuous improvement of the products, to reduce the possibility of them being out of date.

            The step-by-step production plan is key in realizing high level of innovation within a supply chain. production or product plan should focus on manufacturing/ production, marketing of the products and movement of the produced goods into the market. Goods should always reach the target market within the stipulated time (Hsu et al.,2020). Goods that arrive at the exact time when the customers need them, tends to have higher market value and quality when they are being consumed. A delay on the other hand, makes the quality of the product to be low, as the consumer will get the product when their need to be satisfied has either been satisfied, or they have suffered more, waiting for the subject product.  At HISCO Limited, a four-phase product development has historically been used in developing medical reader. The four phases product storage, production, repackaging, and transportation.

            Innovative product is one of the chief strengths of HISCO Limited. The company’s developed segments   have continuously relied on establishment on strengths, as well as capacity to create an array of commodities.  The company is steadily focusing on revamping towards its dive to propel the current products.  With these strategies the company is hoping to increase its level of profitability.  Throughout the years of operations, HISCO Limited has been able to acquire, a unique level of innovations.  With this the company has been able to strengthen its position in the various categories of production. In the year 2015 for instance, the company managed to extend its level of organization for its clientele in various nations across the globe. The company also introduce niche in the consumer sections. 

            The main aim as to why the company is focused on innovative products is to ensure that it continues to occupy the market apex, which it is occupying currently (Hu & Tadikamalla, 2020).  In order to realize this, a data base is maintained, which shows the various trends of the product.  The market data, feedback received from customers are usually the key informants of product development. Every financial year, the company develops a business plan, which remains the model of operation throughout the year. The business plan focusses on goals, strategies and objectives of the company. At the end of the year, an evaluation is done on based on the model developed for the year, and a corrective measure taken to make future operations and innovations even better.

            HISCO Limited Is focused in creating a paradigm shift, which will be geared towards widening the scope of the company’s action towards growth. The ability to adapt to the industrial changes has helped the company to remain synchronized in using the current market situations to make better future decisions.  HISCO Limited is trying its level best to maintain this state, to ensure that the full potential of the company is realized, and a reasonable level of productivity is realized.  Though the company develops an annual business plan, which is referred to throughout the year, the main focus in the course of the year is continuous improvement.  Continuous improvement and performance evaluation is one of the key strengths and driving forces.  The company has set a strategy for innovation, which is relied on in designing products and promotion.  The primary focus however, remains is utilizing innovative strengths to influence the market.

 So as to be able to implement price discrimination properly, the company has profiled its markets and divided it into various segments.  The various marker zones have been divided, based on geographical regions. The market segments are very handy in managing risks associated with the industry. Losses in one market for instance, is cancelled by boom or profit in another market (Hu  & Tadikamalla, 2020). Besides, investment on innovation level differs from one market to the other, depending on the benefits that the company derives from the subject market. Because of the fragile nature of HISCO’s products, the company’s stores are properly ventilated.  Besides, temperature controls within the rooms are under proper checkups.

So as to be able to operate efficiently, the company has developed three cornerstones of data, mechanical assemblies, and the precise process, taking into account that the association in which HISCO belongs also have a vision of dependently pushing the edges a head. The company’s cornerstone in maintaining unique product are an array of products and continuity. The objective is to develop things which are direct and maintain high level of standard, while maintaining an efficient product access to the customers, to manufacturing engineers and the top management.  

Research and development are very critical in maintaining a high level of innovation. Research and development. Research and development can be defined as activities which are undertaken to innovate and introduce new products and services by a company (Hsu et al.,2020). Research and development are always the first step in product development. the main goal of research and development is to come up with a new product, and add to the current company’s stock level. At HISCO Limited, the research level has been expanded over the years. Consequently, the company’s designers and equipment used in measurements to be brought into the same housetop within a very short time. The company intends to come up with open passages for its development center based in India.  This will be implemented in the course of the new financial year. In the surrounding market the specialists as well as work bargains learn through maintaining a very high level of vigilance. Vigorous and timely bidding makes the company to always remain a chief contender.

There are numerous reasons as to why the company always strives to remain a chief contender. Principally, the ventilation range has not been patented.  Due to this reason numerous contenders always try their level best to take advantage.  Based on these facts, there is a dire need of the company having its eyes and ears wide open. Besides, the company should ensure an utmost customer awareness. Due to its high level of innovation, HISCO Limited has customers across the globe, which is the reason as to why principles of engagement must be defined.  Failing to read from the same manuscript with European market is important as it has led to variations and measures which are likely to be evident in other markets. The company therefore implements two main guidelines in the process of innovation which include; effective management and standardization of products which are related and progressive and continuous improvement, as well as marketing of products within the current promising market.

HISCO Limited has maintained a dynamic role through maintaining affirmation of new products and innovation. Legitimacy of the products is one of the reasons as to why the company has been able to earn loyalty of customers. The company is committed towards ensuring that its products are highly differentiated. Similarly, HISCO Limited is focused on locking out the perennial customers exploitation, through unfair market influence. Through focus on exhibits the company is intending to take advantage of the market and recover the cost of marketing and operations.

Competitive Environment Analysis

            The competitive environment refers to the level of competition within an industry in which a company operates.  It is necessary to always analyze the level of competition, so to determine the ability to remain competitive within the market (Koc & Bozdag, 2017). In this analysis Porter’s Five forces will be used in analyzing the environment in which HISCO operates. The Five porter’s forces refer to a model which is used in identifying and analyzing the five competitive forces within an industry. Through Porter’s five forces, a company is able to identify its weaknesses and strengths. The Porter’s five forces is often used in identifying the structure of an industry and determining an appropriate corporate strategy.  Through this model a company is able to understand the most appropriate competition strategy which can be adopted to the best interest of the subject company. According to Koc  and  Bozdag (2017), Porter’s five forces model is used in generating the   time value between the supplier and the customer, hence giving an idea through which the supply chain can be properly managed.

            Using this value chain model, it is evident that a market value for the company is in existence.  Figure 1 at the appendix, clearly explains this. Vertical there is raw materials, intermediate goods, trade, advertisements and auctions, as well as after sales service which can be offered by the suppliers.  The after-sale service are subsidiary services which are offered to the buyer, once the control and ownership of the goods have changed hands. According to the market analysis which was done recently by the HISCO Limited, it was noted that the level of cost efficiencies in the market for medical readers, as well and acquiring the raw materials for production. Though support of the management of the various stakeholders, the value chain has been translated into risk management, company continuous growth and profit maximization.  In the year 2019, the company has a strong supplier base as compared to its main competitors. It is worth to note that the main competitors for HISCO Limited are 3M, Alpha Metals, Kimberly Clerk, Texwipe among other main companies listed in the 10k.

            HISCO has tried its level best in providing the best and long-lasting solution to its clients through partnering with them in service delivery.  The company has been able to rearrange their supplier process, which has led to a drastic reduction for raw materials. This is one of the strategies through which the company has been able to manage its cost of operations, and maximize profit.  The Porter’s model clearly indicates that the business had its performance seriously affected b the value chain through the various manufacturing elements.  The government is endowed with the responsibility of ensuring that a conducive environment is available for business operations.  This is done by formulating and enforcing policies that guide and govern business operations.   The government policies in an organizational set up such as the case of HISCO Limited, affects the price of raw materials, the cost of general production, as well as the cost of marketing.

            Appendix 1 clear shows the combination of manufacturing forces between HISOC and other players in the market. The company has been able to properly utilize technology in realizing a very high level of quality. Technology has been utilized in managing   utilization of raw materials, management of supply chain, and aligning supply chain with the demands of the customers. Technology has also been effectively used in in aligning the production schedule with the market trends. HISCO Limited has been able to utilize appropriately engineering process. Through this process, the company has been able to implement a modern technology, as well as personnel skills for packaging of our products. Technology has also been very handy in controlling the quality of our products and to ensure that they meet the exact needs of the market. The company has also utilized technology to maintain a hundred percent production ratio.

            There is need to convert the raw materials from Medical Readers at option level with zero cost, minimal time and very minimal labor requirements. As a result of these, manufacturing capability has been optimized. The company has set plans in place to ensure that review of the raw materials used is done, to enhance quality even the more. It is an anticipated that new technology would help the company to ensure that the cost of production is managed, and make the supply chain even much better. Utilization of technology will also make the company to realize a high level of quality, without necessarily increasing the final market price. A broader market share, otherwise referred to as wide promotion, has the effect of increasing of increasing the revenue for the company, increasing the sales volume and making the consumers to be more loyal to the subject supplier. The main objective of the shareholders is to maximize profit. Any step which helps in reducing the cost of operations, while maximizing profit therefore, works to the advantage of the shareholders.  The current technology being implemented by the company will therefore help in profit maximization, hence increasing the firm value and the net worth thereof. 

Product Marketing

            In order to realize the desired market value, and reap maximally, it is prudent that a supply makes a proper strategy, which will meet the short term and long-term needs of the company (Yin & Alexandru, 2019).  Marketing of a product can be done through a critical focus on the 4Ps, which are, product, people, place and promotion. The current product for HISCO Limited is the medical reader. The place is market which the company serves. Being an international company, HISCO has been able to serve a wide range of customers, with main concentration in America. People and place are more or less the same thing. Both revolves around strategies which can be laid down to ensure that the best interest of the market is served, while maintaining the objectives of the company. Finally, promotion refers to products awareness which should be done on a regular basis, to make customer constantly aware of the product’s existence.  In the year that has just ended, HISCO Limited managed to create a new product introduction (NPI) market value, in the competitive market.

            The company remains the top most supplier of the medica readers, with a higher delivery capacity of about 30% over the ones which are currently available in the market. The 4Ps have been made better by introducing the fifth “P” which is price. The company has been able to over very competitive market price. This has been possible mainly because the company is able to take advantage of the economies of scale to reduce the cost of production. Price of the HISCO medical readers has been able to make it has a high demand, as consumers usually prefer maximizing their utility subject to the budget constraint.  Other than offering competitive price, which is attributed to economies of scale, the company has also been able to utilize properly the principle of price discrimination. Price discrimination is an act of selling the same quantity of products to different markets at different prices.

            For price discrimination to take place, the supplier must be able to do proper market profiling, and assess the demands of the goods and the income levels of the targeted markets (Kannan, 2017). It is worth to note that products whose demands are perfectly elastic cannot allow implementation of price discrimination. In North America for instance, the market is quality oriented. Though considered, price is not the main determinant of demand in this market. HISCO therefore, sells its products in this market at slightly higher price, as compared to other markets. In order to ensure indisputable market and consumer loyalty, HISCO Limited has also been able to implement digital marketing strategy in North American market. The high cost of marketing is transferred to the consumers in terms of the final price charged. The coming years, the company will not invest more on further market expansion, instead, more attention will be given to cost effectiveness, to ensure that competitive price is offered consistently.

Financial Statements

Financial statements are used both by the internal and external stakeholders in gauging the performance of a company. The statements are prepared to meet the statutory requirements and for internal decision making (Özevin, 2020). The main financial statements which must be prepare at the end of the year are; statement of financial position, income statement, statement of cash flows, and statement of changes in equity. The statement of financial position, usually shows the net worth of the company as at a particular date, in as far as assets and liabilities are concerned. Income statement shows the performance of the company during the ended trade period.  It is because of this that income statement is at times referred to as trading profit and loss account.  The cash flow statement, shows the actual movement of cash during the period ended, hence bridging the gap between the accrual accounting principle and cash accounting principle (Henderson, 2020). Finally, the statement of changes in equity is used to summarize the changes in the shareholders funds, within the subject financial year.

Where necessary, these financial statements must be published for perusal and decision making by the current and potential shareholders and other stakeholders. It is also a requirement that these statements be audited (Özevin & Yazdifar, 2020). The auditor’s opinion given on the financial statements are usually legally binding, and the auditor must be ready to take responsibility if any person makes a decision based on those financial statements.  the financial statements can however, be prepared in the interim to enable the management make a certain decision on behalf of the company. The financial statements show both the level of performance, as well as the possibility of the subject company remaining solvent and a going concern within the foreseeable time period.  Going concern in this case refers to the ability of the company to exist within the foreseeable time period.  solvency on the other hand refers to the ability of the company to finance its activities through the owners’ funds.

A company which is able to finance a greater part of its activities using the shareholders’ funds is said to be more solvent as compared to a company that finances its activities through non-owner funds.   A good financial position should allow a company to finance its activities either fully or more than 60%. A company that finances more than 50% or more than 60% of its activities through non-owner funds is said to be highly levered. Such companies are usually enslaved by restrictions by the external funders (Thomas, 2020). Consequently, the company will not able to make strategic decisions which can influence positive growth. For a company to remain solvent and have a more certain going concern, then its cash flows as well as its performance should be within the acceptable industrial average. A profitable company is able to retain more profit after distributing dividends and pay its tax obligations. Such companies will be able to finance its activities using the owners’ funds easily, as compared to a company which is less profitable.

Though 2020 was a very rough year for the company, the financial performance remained within an acceptable range. It is however, worth to   note that the projected profit was not realized. The main reason for this was due to the fact that, as at time of planning, the company did not imagine that the global pandemic would be faced.   Some of the decisions that helped the company to remain focuses and solvent despite the economic challenges were made in the year 2018, way back before the pandemic came. None the less, a provision was put for the unforeseeable contingencies. The account became very handy during the pandemic.  The financial statements are attached at the appendix. Appendix 2 shows that the company managed to grow its inventory from 559 in the first quarter to 829 in the fourth quarter. The increase in inventories can be attributed to increase in demand between second and fourth quarters.

The increase in inventories can also be boosted to 1,015 networks in the fourth quarters. the projection however, fell way back below the projection in the fourth quarter which was 1,853 units.  The company has been able to work tirelessly towards realizing a constant profit growth. In the past two years, HISCO Limited managed to report a profit growth from $ 146,402.48 in the year 2020 to $ 282,199.88 in the year 2021 (HISCO, 2019). It is therefore, evident that despite the storms that the company has faced in the past, the future is quite bright, as the level of performance has always increase at an increasing rate. Despite the profit increase, the company did not manage to increase its market value. The market quoted price for the company in the weakened from 1,015 to 1,853 between the years 2020 and 2021. The consistent increase in the level of sales, is therefore the reason as to why the company has maintained a consistent rise on its revenue.

The trade strategy in the year 2020 was a buy and sell supply chain management. The company also focused on innovation, online or electronic advertisements, constant quality improvements, among other strategies which are production oriented.  As a result of constant innovation, research and development, the company’s cost of operations increases considerably. The company utilizes the latest engineering technology which is very costly. The lean sigma 6, constant advertisements and leasing were also used by the company. The income statements at appendix 2 shows tat the company cost of marketing increased from $ 35,0000 in the first quarter of 2020 to $ 70,000 in the fourth quarter of 2020 (HISCO, 2019). This is an increase of 50%. It is worth to note that an increase in the cost of marketing/operations by 50% also have a consequent reduction in the realizable profit by 50%.  The drastic increase in the cost sales, and operations thereof, can be attributed to the decision that the company made to venture into electronic advertisement as opposed to physical investment. The same quarter, the company also invested in application software and other important systems.

Though the pandemic hit the company hard, there were also valuable lessons that the company learnt which could be very handy in the near future. The lean sigma 6 which was executed for example helped in improving the level the level of efficiency in supply chain management.  The cost efficiency was quantified   at approximately $ 32,000 in the first quarter of 2020. The pandemic however, led to a price decline to $ 20,000. The aftermath of the pandemic is also projected to affect the level of sales in the fourth quarter by $ 20,000 (HISCO, 2019). The tools of service, as well as building of lease and utility expenditures have also boosted between 2020 and 2021. As a result of this, the company has been able to realize the additional manufacturing hardware, and another room for manufacturing. These though cost intensive, will boost the operations and performance of the company.

Other than the above-mentioned expenses, HISCO Limited company realized an increase in the service tools from $ 40,883 to $ 133,415 in the year 2021. Though leasing of structures and utilities have increase from $ 79,953 in the year 2020 to $ 109,535 in the year 2021, benefits are worth the sacrifice. Similarly, during these financial years, the company also increased its expenditure in research and development to $ 50,000 (HISCO, 2019).  The company has been able to successfully assimilate a high quality of design which can be attributed to innovation.  The high-quality design has helped the company in increasing the level of economies of scale, leading to reduced cost of production. In the past two years, the company had an increase on its inventories cost from $ 610 in the first quarter of the year 2020, to $ 624,225 in the first quarter of the year 2021 (HISCO, 2019). However, the year 2020 also realized a decline on the total adaptation. As a result of this the expenses rose from the $ 21,953.15 in the year 2020 r to $ 216,776.7 in the year 2021.

In the year 2020, HISCO Limited realized a deficit of $ 36,104.93, in salary payments. In the year 2021, the overall deficits were much higher at $ 108,388.3 (HISCO, 2019). This can be attributed to high rates of interest. coupled with high costs of operating the expanded online promotion and publicity.  The high costs can also be attributed the development of gadgets.  It is therefore evident that the fiscal gauge, which is dependent on the inward, as well as outside factors, which shows that the strategies are cost intensive, and that the cost is likely to rise even further in the year 2022. It is projected that in the coming year of 2022, the company’s income will rise to $ 108,388.36 courtesy of the improvements that HISCO has   implemented on its production measures. The company is also banking on the rise in the level of demand to increase its sales and revenue. The consumer floor, security remained constant and obligations degree at $ 425,000 and $ 100,000, $ 114,915.97 respectively (HISCO, 2019).  This has however, not affected the company’s credit standing, which remained at very promising rates.

The level of proficiency at HISCO is purely dependent on the reported income. Working assignments was reported at $ 136,198.17, while undertakings stood at $ 56,774.15. The cash which was made in subsidizing exercises was $ 475,586.22. The generals were upgraded from $ 475,586.22 in the year 2020 to $ 846,970.42 in the year 2021 ((HISCO, 2019). The receivables on the other hand, rose from $ 52,903.94 in quarter 1 of 2020 to $ 97,560.67 in the 4^th quarter of 2021. HISCO managed to reduce its liabilities from $ 382,291.94 in the 1^st quarter of 2020 to $ 114,710 in the 1^st quarter of 2021 (HISCO, 2019). It is therefore evident that the company reduced its leverage levels while increasing its net worth.   The martials purchased rose to 3,200 in the year 2021, while assembling business works rose to 2,800.

Conclusion

From the foregoing, it is factual to state that HISCO Limited has all the potential of brighter future. The company only needs to remain focuses on the short- and long-term goals.  For investors who have their interests in HISCO, the company intends to grow its net worth, and profitability as much as possible, and increase its market value thereof.  The company also intends to continue with intense product promotion, with a hope of remaining at the market apex as much as possible.  Considering the HISCO investing is one of the wisest decisions that one can make now. This is due to the fact that, the share price is likely to rise in the near future, which will lock a number of potential investors.  The products sold by the company falls under the category of essential goods. Furthermore, the future development of HISCO Limited is certain, owing to the fact that the company is projecting a constant rise on its revenue, and cash flow. The working lines have been streamlined to ensure that the high-quality medical readers are always produced.

The company also capitalizes on current technology to ensure that it produces products which meets the exact needs of the market. HISCO devices are technology oriented, which makes them to be preferred in the market.  High level of commitment in satisfying the needs of the clients, as well as constant partnering with them, has earned the company a great level of loyalty. These among other facts are a clear proof that the company’s products remain indisputably preferable in the market. With these, the company has a great opportunity for development and skill improvements.