Financial Performance of Gsk Bangladesh Limited

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4.1 INTRODUCTION

GSK Bangladesh Limited has been an active part of the pharmaceutical scenario of Bangladesh for a long time now. In Bangladesh, its functions are surrounded by 3 basic categories of pharmaceutical products. These are:

a)Locally manufactured pharmaceutical products like Ventolin, Berin, Kefdrin, Amoxil, Dermovate, Zantac, Lamictal etc. b)Imported pharmaceutical products like Alkeran, Leukeran, Seretide etc. c) Vaccines like Engerix-B, Havrix, Hiberix, Varilrix etc.

Profits generated through the manufacturing, import, promotion and sales of these products are the financial fuel of the company. And the annual reports of the company have done a terrific job stating the relevant information regarding financial movements in the company and secured the National Award for Best Published Annual Reports & Accounts for the fifth year in a row until 2005. The Institute of Chartered Accountants of Bangladesh (ICAB) declares this award after a threadbare review of disclosures and other contents of the report based on a set of stringent criteria prescribed by South Asian Federation Of Accountants (SAFA).

Like any other public limited company, the directors are responsible for ensuring the maintenance of proper accounting records, which disclose with reasonable accuracy the financial position of the company at any time and from which financial statements can be prepared to comply with the Companies Act 1994 and Securities & Exchange Rules 1987 and the Listing Regulations of the Dhaka Stock Exchange.

After making enquiries, the directors have responsible expectation that the company has adequate resources to continue its operational existence for the foreseeable future. For this reason, they continue to adopt the Going Concern Basis in preparing the financial statements.

4.2 FINANCIAL STATEMENTS

Without exception, GSK Bangladesh Limited publishes the attached financial statements through their annual report including the ratios stated under the Financial Highlights:

STATEMENT 1: FINANCIAL HIGHLIGHTS

Tk in '000
GSK Bangladesh Limited
Key Operating & Financial Records20062005200420032002

Assets Employed
Property, Plant & Equipment 303,955 290,664 278,301 259,359 215,714 Investment - - - - 27,500
Differed Tax Asset 31,099 89 5,060 3,000 - Net Current Asset 573,998 614,224 640,381 473,542 457,474 Total Assets Employed 909,052 904,977 923,742 735,901 700,688

Financed By
Ordinary Shares 120,465 120,465 120,465 120,465 120,465 Reserves & Surplus 645,917 699,252 716,661 537,459 504,054 Shareholder's Equity 766,382 819,717 837,126 657,924 624,519

Retirement Benefit Obligations 103,662 73,053 79,823 77,977 76,169 Differed Tax Liabilities 33,895 4,414 - - -
Obligation Under Finance Lease 5,113 7,793 6,793 - -
142,670 85,260 86,616 77,977 76,169
Total Capital Employed 909,052 904,977 923,742 735,901 700,688

Turnover & Profit
Net Sales 1,439,343 1,342,645 1,272,601 1,298,939 1,208,888 Operating Profit (10,233) 71,426 88,755 94,568 95,877 Profit After Tax (17,122) 48,846 183,518 86,819 72,245

Ratios
Market Price Per Share - Taka 135.50 137.00 171.00 119.00 104.00 Earnings Per Share (EPS) - Taka (1.42) 4.05 15.23 7.21 6.00 Price/Earning Ratio - Times (95.42) 33.82 11.22 16.50 17.30 Price/Equity Ratio - Times 13.55 13.70 17.10 11.90 10.40 Dividend Per Share - Taka 1.00 3.00 5.00 4.00 4.00 Dividend Payout - Percentage (70.35) 74.00 32.82 55.50 66.70 Effective Dividend Rate - Percentage 0.74 2.18 2.92 3.36...
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