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Company Profile

Proteety Pharmaceuticals Ltd.

Proteety Pharmaceuticals Limited is a privately owned Pharmaceutical company incorporated on February 14, 2001 under companies act, 1994 and launched their products in December 2001.

Products:
Major function of the company is to manufacture products Dispensing products, analytical chemist and druggist and all pharmaceuticals products.

Promotion and Sales:


The Marketing and Sales Department is headed by the Director, Marketing and Sales, along with an experienced tem to promote the products and channel properly to make sure that ean users of the its product get services in appropriate manner.

Company Basics:
Proteety Pharmaceuticals Ltd. Is a Privately owned company, having Share Capital of 50,300,000 Taka and Shareholders Equity comes to (27155326) taka by 2008. Capital Structure Proteety Pharmaceuticals have restructured its Capital formation, and went for leverage in 2006. Particulars Share capital Shareholders' Equity Long Term Debt 2004 300 37,066,653 NA 2005 50,300,000 52,771,615 NA 2006 2007 2008

50,300,00 50,300,000 50,300,000 0 53,349,912 38,833,026 6,804,333 79,757,131 NA 84,642,74 7

In 2006 the firm took Long Term Bank Loan and started recovering its performance quality and growth back. In 2007 its Asset grew at 134.88% and after 2008 simple average sales growth came to 40.05% per anum. Its Debt-Equity formation is as below, 2004 Debt to Equity Ratio 0.72 2005 0.48 2006 1.17 2007 3.29

Operational Performance As, major function of the company is to manufacture pharmaceuticals products its success directly approached to its sales performance. In 2006 its sales growth reached to 24.84% which went to 186.25% in 2008, its attributable to the efficient Management Team which made it possible to achive these tremendous point of success. Current Ratio of the company went its high in 2006, and in last five years, it remained at a high level. Operating Cash Flow Level remained high on Current Liabilities, Management always tried to maintain an OCF much available against Current Liabilities. Companies liquidating scope to Current Liabilities was satisfactory as its Cash ratio remained 1% to 8%. Management team has been able to maintain a Gross Profit Margin in the range of 25% to 30%. The Company has a simple average growth rate of sales of 40.05%, which drag the company to have potential of very good prospecting performance. Profitability: Gross profit margin remained between 20 to 30%, which signs a strengthening of cost control proportionate to sales volume. Movement of EBITDA margin signs about satisfactory OCF level against Sales. Mean Sales came to 41 million taka for last four year. Managerial Managerial function are prospected to be improved by improvising efficiency and quality of work of the team farther, where sufficient modification and reformation in process of working is in consideration. Current assets are managed and utilized in a way that reflects a high degree of usage, cash balance stayed static was in good ratio to Current Liabilities. Receivables and payables shows a similar trend to each other.

Analytical overview:
A SWOT Analysis of Proteety Pharmaceuticals Limited: Strengths Efficient Sales and Marketing team.

Good profitability Strong managerial performance Weaknesses Capital restructuring is needed Proper use of Fund is needed Opportunities High demand of products, Domestically and Internationally Opportunity to diversify products line Threats Ease of market entry by new entrants Market leaders with large market share Financials Financial prospects of Proteety Pharmaceuticals Limited have been depicted with the help of some ratios, which measure its performance relatively. Profitability Ratios Particulars ROE Gross Profit Margin EBITDA Margin Net Profit Margin ROA 2004 2.61% 22.84% NA 2.46% 1.28% 2005 1.65% 30.00% 57.51% 3.21% 1.04% 2006 NA 30.00% 40.14% NA -2.05% 2007 NA 31.00% 38.45% NA -6.34% 2008 243.00% 30.04% NA NA -40.36%

Solvency and Efficiency Particulars Current Ratio Cash Ratio 2004 0.83 0.01 2005 1.16 0.02 2006 1.17 0.01 2007 1.00 0.06 2008 0.64 0.08

Operating Cash Flow ratio Accounts Receivable Turnover Accounts Payable Turnover Inventory Turnover

NA 4.00 NA NA

0.39 1.62 NA NA

0.16 0.90 NA NA

0.15 2.33 2.26 2.26

NA 4.94 3.48 3.48

Growth Particular s Sales Total Asset 2005 2006 2007 2008 186.25% 25.56%

-31.09% 24.84% -19.82% -6.25% 118.09% -3.97%

Risk Analysis Sales Variability


Mean of Sales STD of Sales C.V of Sales C.V in % 41401373.8 Sales Variability is little exposed to risk, there is 24341217.2

58.79%

unconventional trend of ups and downs, but it can be revocable through proper restructuring of availability 0.588 and usage of finance to support smooth production and sales.

Operating and Financial Leverage


Degree of Operating Leverage 3.33 (0.56) 2006 2007 2008 (15.98)

Sales will not be the true variable to boost operating income of the company, where we saw gross margin is satisfactory, thus DOL alarms to reign the pattern of operating expenses.

Degree of Financial Leverage 4 3 2 1 0 -1 -2 -3


3.8332 0.7095 -0.1444

2005

-2.17762007 2006

2008

Increasing operating profit had a adverse effect on earning after all debt holders payments, and shareholders were not being facilitated with the borrowing, but after 2007 the situation is being better off, effect of fixed payments to capital has been offset to some extent to the shareholders earning.

Financial Leverage Index

5 3 2 0

4.5741 1.5870 2005 2.1751 2006 2007 2008 -6.0207

Companys borrowings are not being utilized properly as index fall sharp on 2008. Designing of fund has to be revised properly.

Company Statistics Particulars 2004 2005 2006 Amount in Taka Fixed Assets Current Assets Share Capital Long Term Debt Sales Operating Margin Net Profit 52,280,412.0 53,895,624.0 50,467,677.0 118,539,142.0 114,200,469.0 0 0 0 0 0 22,994,971.0 29,706,652.0 65,327,142.0 0 0 0 58,989,167.0049,231,941.00 37,066,653.0 52,771,615.0 53,349,912.0 0 0 0 38,833,026.00 27,155,326.00 NA NA 6,804,333.00 79,757,131.0084,642,747.00 2007 2008

39,300,224.0 27,082,080.0 33,810,110.0 0 0 0 27,110,080.0077,603,225.00 4,835,621.00 5,559,710.00 4,787,130.00 1,627,438.00 46,821,966.00 967,363.00 870,254.00 2,382,746.00 11,269,958.00 65,988,352.00

Some key indicators of company performance presented graphically

Sales and Cost of Goods Sold


Taka

61 ,000,000 41 ,000,000 21 ,000,000 1 ,000,000 2004 2005 2006 2007 2008

Sales

Cost of Goods Sold

Total Assets and Shareholders' Equity


Taka

200,000,000 1 50,000,000 1 00,000,000 50,000,000 0 -50,000,000 2004 2005 2006 2007 2008

Total Assets

Shareholders' Eq.

Sales to Earnings
Taka

1 00,000,000 50,000,000 0 2004 -50,000,000 -1 00,000,000 2005 2006 2007 2008

Net Profit

Operating Profit

Sales

Proteety Pharmaceuticals Limited


House-214, Lane-13, Lake Road, New DOHS Mohakhali, Dhaka-1237, Phone 882835, 9881032