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Financial management 

Mirza Shakeel Baig

ONaila Ali Mirza
OAmbreen Waqar
OAyesha Binte Farooq
OSaher Hameed
OShajia Raza
ORida-e- Fatima

„  

EXCEECE  „ 2008
O 

„ named as ´the best place to work-2008µ

O

Most preferred pharmaceutical company

O

25th corporate excellence award

O

Tax-payers excellence award 2008

O

Consumer choice award

ulaxo„mithline, Pakistan („P) imited is the largest
research-based pharmaceutical company in the country and the
second largest in the world. „ is in Pakistan since 1955.
ulaxo„mithline has 99 manufacturing sites in 39 countries
that supply products to 191 global markets. laxo„mithline
has over 100,000 highly skilled and dedicated employees
worldwide.   

‰ ‘ugmentin ‰ ‘moxil
‰ Panadol
‰ ‘mpiclox
‰ Calpol

‰ Ventolin

p  

‰ Engerix

‰ Typherix

‰ Infanri!

‰ cencevax

‰ Fluarix

‰ Havrix

‰ Varilrix

‰ Hiberix

‰ Tritanrix

‰ Priori!

‰ Betnovate
‰ Zantac

7000

6000

5000

non-current liabilities
4000

non-current assets
3000

net current assets
property,plant and
equipment

2000

1000

0
2008
2007
2006
2005
2004

2006

2007

2008

2006

2007

2008

V    

  

31.9

20.9

17.5

16.5

19.6

6.6

6

8.6

10.6

9.8

9.8

11.5

20

20

25

25

25

7

7

8

8

7.5

9.5

13,916

15,817

20,350

21,559

32,837

12,961

61.5

51.5

60.2

82

97

83

4.7

5

5.6

6.6

5.2

12.5

22.4

26.5

26.9

22.1

20.6

23.4

Total assets turnover(times)

1.4

1.3

1.1

1.1

1

1.3 

edtors turnover %

3.7

2.2

1.9

2.7

3.5

15.4

Inevtory turnover (days)

51

50

54

63

69

56

Current ratio

4.2

4.6

5.1

4.4

4.3

4.1

12.7

16.6

19.3

16.5

15.7

14.6

Price earning ratio (times)
Earning per share- s
Bonus share %
Cash dividend per share- s

Market capitalization (s in millions) 
ividend payout % 
ividend yeild % 
eturn on equity %

gross profit margin %

------ 

I C PIT 

year
2008
2007
2006
2005

Current
Current 
orking
ssets 
iabilities
Capital
7,970,061
1,937,662
6,032,399
7,520,402
ÿ ÿ ÿ
5,759,184 
 
1,703,806
5,826,548 
ÿ ÿ
ÿ   
5,252,464

à   
     

Pay back Period:
YE  

et cash flow

0

4,050,000

Cumulative net
cash flow
(4,050,000)

1(2005)

1,720,593

(2,329,407)

2(2006)

1,765,874

(563,533)

3(2007)

1,496,890

933,357

4 (2008)

401,842

1,335,199

ü    ü   

iscounted payback period:
Year 

et cash flow 

iscounted net cash
flow (at 10%)

Cumulative discounted
net cash flow

0

4,050,000

4,050,000

(4,050,000)

1(2005)

1,720,593

1,564,175

(2,845,825)

2(2006)

1,765,874

1,459,400

(1,026,425)

3(2007)

1,496,890

1,124,635.6

98,210.6

4(2008)

401,842

274,463.5

372,674.1

= 2 + 1,026,425 = 2.91
1,124,635.6 

et present value:
Year 

et cash flow

0

(4,050,000)

1(2005)

1,720,593

1,564,175

2(2006)

1,765,874

1,459,400

3(2007)

1,496,890

1,124,635.6

4(2008)

401,842

274,463.5

Total In-flows

6,892,846.2

Inflow ² outflow = 6,892,846.2 ² 4,050,000
= 2,842,846.2

Internal rate of return:
m 

 
   

      

0

(4,050,000)

1(2005)

1,720,593

1,564,175

1,496,167.826

1,509,292.105

1,500,081.081

1,498,774.39

1,497,469.97

2(2006)

1,765,874

1,459,400

1,335,254.442

1,358,782.702

1,342,248.343

1,339,910.95

1,337,579.65

3(2007)

1,496,890

1,124,635.6

984,229.47

1,010,358.113

991,972.50

989,382.5

986,801.50

4(2008)

401,842

274,463.5

229,754.47

237,922.7228

232,167.62

231,359.733

230,555.35

Total In-flows

6,892,846.2

4,045,405.38

4,116,355.643

4,066,469.55

4,059,427

4,052,406 

PV

2,842,846.2

(4594.62)

66355.64

16469.55

9427

2406

I
Year

14.94%

0
1(2005) 

et cash
flow
(4,050,000)
1,720,593

2(2006)

1,765,874

1,336,744.843

3(2007)

1,496,890

985,871.62

4(2008) 401,842
Total In-flows 
PV

1,496,948.843

230,434.58
4049999.886
(0.11)

Modified Internal ate of return:
Year 

et cash
flow

0

(4,050,000)

1(2005)

1,720,593

2,290,109.283

2(2006)

1,765,874

2,136,707.54

3(2007)

1,496,890

1,646,579

4(2008)
401,842
Terminal value

10%

401,842
6475237.823 

ü  
 Ą 
 Ą ü   

 ü  
ü    ü  
ü 

 ccVm
c 
PBP 
. PBP 
PV
I
MI

V  
  
2.376
3.5
O ccept
2.91
3.5
O ccept
2,842,846.2
0
O ccept
14.94%
10%
O ccept
12.5%
10%
O ccept