Professional Documents
Culture Documents
Submitted To:
Mr. Hashmat Nawaz
Submitted By:
Muhammad Waseem
Roll # 10555
MBA 2nd Morning
I must offer my thanks to Allah the Almighty
by whose blessing I have been able to complete my
report on GSK Pharmaceuticals.
Muhammad Waseem
Roll # 10555
M.B.A 2nd Morning
Our quest is to improve the quality of
Human life by enabling people to
do more
feel better
live
longer
vision is exciting:
the opportunity to make a difference
to the lives of billions of
people.”
Audit Committee
Mr. Rafique Dawood Chairman
Mr. Tariq Iqbal Khan Member
Mr. M. Salman Burney Member
Management Committee
Mr. M Salman Burney Chairman / Chief Executive
Dr. Mazaffar Iqbal Technical Director
Mr. Ghulam Mustafa Aziz Finance and I.T. Director
Mr. Shahid Mustafa Qureshi Legal and Corporate Affairs Director
Dr. Iffat Yazdani Director Medical Services
Dr. Z. U. Khan Head of Quality
Hajji Muhammad Hanif Head of Procurement
Ms. Erum S. Rahim Director Marketing and Business Development
Mr. Pervaiz Iqbal Awan Sales Director
Mr. Maqbool ur Rehman Sales Director
Mr. Sohail Matin Country Manager – Consumer Healthcare
Burroughs Wellcome & Company was founded in 1880 in London and Glaxo was
founded in Bunnythrope, New Zealand, originally a baby food manufacturer
processing local milk into and early baby food. Glaxo becomes Glaxo Laboratories,
and opened new units in London in 1935. To be a stronger force in the medicine
market, Burroughs Wellcome and Glaxo merged in 1995 and the new name of the
company was GlaxoWellcome.
There are four main companies in the history of GDK: Burroughs Wellcome &
Company, Glaxo Laboratories, Beecham and SmithKline and French. In 1830, John K.
Smith opened its first pharmacy in Philadelphia. The company also wanted to spread
all over the world to capture shares in various medicine markets, and to accomplish
this they bought 7 more laboratories in Canada and US and changed its name to
SmithKline Bachman.
6171543
Rerserves 6410922 63.07% 65.35%
8117641
7,536,918 79.86% 79.81%
NON-CURRENT LIABILITIES
Staff retirement benefits-staff gratuity 23192 66057 0.23% 0.70%
Deferred taxation 262458 137041 2.58% 1.45%
285650 203098 2.81% 2.15%
CURRENT LIABILITIES
Trade and other payables 1698374 1598432 16.71% 16.93%
Taxation 62844 105374 0.62% 1.12%
1761218 1703806 17.33% 18.04%
NON-CURRENT ASSETS
Fixed assets-property, plant and equipment 2236720 1774449 22.01% 18.79%
Long-term loans to employees 53755 35786 0.53% 0.38%
Long-term deposits 6808 6808 0.07% 0.07%
Investments 346824 96425 3.41% 1.02%
CURRENT ASSETS
Stores and spares 107199 64996 1.05% 0.69%
Stock-in-trade 2277175 2195407 22.40% 23.25%
Trade debts 116847 84697 1.15% 0.90%
Loans and advances 81039 64589 0.80% 0.68%
Trade deposits and prepayments 84348 76420 0.83% 0.81%
Accrud return on investment
and bank deposits 109851 189829 1.08% 2.01%
Refunds due from the government 14898 39430 0.15% 0.42%
Other receivables 378071 49416 3.72% 0.52%
Investments 98229 99100 0.97% 1.05%
Cash and bank balances 4252745 4666470 41.84% 49.41%
7520402 7530354 73.99% 79.74%
VERTICAL ANALYSIS
HORIZONTAL ANALYSIS
BALANCE SHEET
As At December 31,2007
Authorised Capital
ordinary share of Rs. 10 each 2500000 1,500,000 166.67% 100%
CONTINGENCIES AND
COMMITMENTS
10164509 9443822 107.63% 100%
100%
NON-CURRENT ASSETS 100%
Fixed assets-property, plant and
equipment 2236720 1774449 126.05% 100%
Long-term loans to employees 53755 35786 150.21% 100%
Long-term deposits 6808 6808 100.00% 100%
Investments 346824 96425 359.68% 100%
CURRENT ASSETS
Stores and spares 107199 64996 164.93% 100%
Stock-in-trade 2277175 2195407 103.72% 100%
Trade debts 116847 84697 137.96% 100%
Loans and advances 81039 64589 125.47% 100%
Trade deposits and
prepayments 84348 76420 110.37% 100%
Accrud return on investment
and bank deposits 109851 189829 57.87% 100%
Refunds due from the government 14898 39430 37.78% 100%
Other receivables 378071 49416 765.08% 100%
Investments 98229 99100 99.12% 100%
Cash and bank balances 4252745 4666470 91.13% 100%
7520402 7530354 99.87% 100%
Interpretation
Vertical Analysis
Years 2006
Year 2007
Horizontal Analysis
Year 2007
3952129 3866666
Gross profit 37.25% 38.33%
Selling, Marketing
and
Distribution expenses (1,210,818) (1,053,388) -11.41% -10.44%
Administrative expenses (486,721) (436,821) -4.59% -4.33%
Other operating expenses (223,912) (221,662) -2.11% -2.20%
Other operating income 639415 496390 6.03% 4.92%
2670093 2651185
Operating profit 25.16% 26.28%
Financial charges (11,550) (19,316) -0.11% -0.19%
1670525
Profit after taxation 1664963 15.74% 16.50%
9.76
Earnings per share 9.79 0.00% 0.00%
HORIZONTAL ANALYSIS
(6,658,753)
Cost of goods sold (6,221,581) 107.03% 100%
3866666
Gross profit 3952129 102.21% 100%
Selling, Marketing
and
Distribution expenses (1,210,818) (1,053,388) 114.95% 100%
Administrative expenses (486,721) (436,821) 111.42% 100%
Other operating
expenses (223,912) (221,662) 101.02% 100%
Other operating income 639415 496390 128.81% 100%
2670093 2651185
Operating profit 100.71% 100%
Financial charges (11,550) (19,316) 59.79% 100%
(966,906)
Taxation (988,018) 102.18% 100%
1670525
Profit after taxation 1664963 100.33% 100%
9.79 9.76
Earnings per share 100.31% 100%
Profit/Loss Statement Account
Interpretation
Vertical Analysis
Year 2006
Year 2007
Horizontal Analysis
Year 2007
4.45
4.4
4.35
Values
4.3 Ratio
4.25
4.2
4.15
2006 2007
Years
Analysis
In 2007Company has 4.27 rupees to pay each liability. In 2006 it had 4.41 rupees for
each liability. Company’s current position is good.
QUICK RATIO
Quick Ratio
3.15
3.1
3.05
Values
Ratio
3
2.95
2.9
2006 2007
Years
Analysis
Company is in better position its most liquidate assets are 2.977 times of its current
liabilities in 2007.And they were 3.131 times of current liabilities in 2006.
CASH RATIO
Cash Ratio
2.8
2.7
2.6
Values
2.5 Ratio
2.4
2.3
2.2
2006 2007
Years
Analysis
In year 2007Company has 2.414 cash in hand to pay its current liabilities and in 2006
company’s cash was 2.738 times of its current liabilities.
NVENTORY TURNOVER
2.94
2.92
2.9
2.88
Values
2.86 Ratio
2.84
2.82
2.8
2.78
2006 2007
Years
Analysis
Company’s inventory is 2.92 days of its C.G.S in 2007 and it was 2.83 days in 2006.
RECIEVABLE TURNOVER
A/R Turnover Ratio
140
120
100
Values
80
Ratio
60
40
20
0
2006 2007
Years
Analysis
In 2006 account receivable were 119.10 and in 2007 it are 90.81. It means receivable
turnover decreases in 2007.
5.8
5.6
5.4
5.2
Values
5 Ratio
4.8
4.6
4.4
4.2
2006 2007
Years
Analysis
Sales are 4.74 times of fixed assets in 2007 and 5.68 times in 2006. It means fixed
assets are increased as compare of sales of 2007.
TOTAL ASSETS TURNOVER
Total Assets Turnover
1.07
1.065
1.06
1.055
Values
1.05 Ratio
1.045
1.04
1.035
1.03
2006 2007
Years
Analysis
Sales are 1.043 times of total assets in 2007 and they were 1.068 times in 2006. It
means company’s total assets are as compare of sales of 2007.
DEBT RATIO
Debt Ratio
0.202
0.2019
0.2018
0.2017
0.2016
Values
0.2015 Ratio
0.2014
0.2013
0.2012
0.2011
0.201
2006 2007
Years
Analysis
Company’s total liabilities are 0.2013 times of total assets in 2007 and they were
0.2019 times of total assets in 2006.
GROSS PROFIT MARGIN
37.24% 38.32%
2006
2007
Analysis
Net profit is 37.24% of sales in 2007 which was 38.32% of sales in 2006. It shows that
the company is able to meet its expenses.
25.16% 26.27%
2006
2007
Analysis
In 2007 Operating profit is 25.16% of sales and it was 26.27% of sales in 2006.
NET PROFIT MARGIN
Net Profit Margin
2006
2007
Analysis
In year 2007 net profit is 15.74% of sales and in 2006 it was 16.50% of the sales.
RETURN ON ASSETS
Return on Assets
0.178
0.176
0.174
0.172
0.17
Values
0.168 Ratio
0.166
0.164
0.162
0.16
0.158
2006 2007
Years
Analysis
In the year 2007 company’s assets are 0.164 but in 2006 return on assets were 0.176.
EARNING PER SHARE
9.79
9.785
9.78
9.775
9.77
9.765
Values
9.76 Ratio
9.755
9.75
9.745
9.74
9.735
2006 2007
Years
Analysis
In year 2007 company’s earning per share is 9.786 (9.79) but in 2006 earning per share
was 9.755 (9.76). That’s means there is a little increase in company’s earning per
share.
THANKS
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