Different Aspects to Improve Overall Financial Strength of Ziska Pharmaceuticals Ltd

 

 
1.0 Introduction
Ziska Pharmaceuticals Ltd. is one of the fastest growing Pharmaceutical Company, committed to produce medicine strictly under cGMP compliance and extend its services to all our valued Customers through a healthy network all over Bangladesh. The company complies cGMP at its plant, where validation and documentation ensure the positions at international standard.
 
Background of Square Pharmaceuticals Ltd
 
2.1 Objectives
Their objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by our vision.
 
2.2 Mission
Their mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders and the society at large.
 
2.3 Vision
They view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.
 
2.4 Corporate focus
Their vision, their mission and their objectives are to emphasis on the quality of product, process and services leading to growth of the company imbibed with good governance practices.
 
2.5 Corporate Information
 
The Ziska Pharmaceuticals Limited is managed by a group of dynamic Board of Directors drawn from different disciplines. They hold very respectable positions in the society and are from highly successful group of Businesses and Industries in Bangladesh. The firm has a very competent Management Team who has long experience in domestic and international Pharmaceuticals Industries. The firm upholds and strictly abides by good corporate governance practices and is subject to the regulatory supervision.
 
BOARD OF DIRECTORS
 
Chairman &     Managing Director                               Mr. Aminul Islam Khan
 
Finance & Operation Director                          Mr. Zahirul Islam Khan
 
Marketing Director                                                       Dr. Monirul Islam Khan
 
 
AUDIT COMMITTEE
 
Chairman                                                                    Mr. Bahauddin Ahmed
 
Member                                                                      Mr. A. F. M. Jahangir
 
                        Mr. Shahab Uddin Ahamed
 
MANAGEMENT COMMITTEE
 
Chairman                                             Mr. Masudur Rahman
 
Member                                               Mr. K.M Saiful Islam
 
                                                            Mr. Parvez Hashim
                                                           
                                                            Mr. M.Ashiqul Hoque Chowdhury
 
                                                            Mr. Md. Kabir Reza, FCMA
 
COMPANY SECRETARY
 
                                                            Mr. Khandaker Habibuzzaman, MBA, ACS
 
 
SENIOR CORPORATE OFFICIALS
 
Chief Financial Officer                        Mr. Md. Kabir Reza, FCMA
 
Company Secretary                             Mr. Khandaker Habibuzzaman, MBA, ACS
 
Head of Internal Audit             Mr. Md. Majibur Rahman Bhuiyan, M.Com
 

3.1 Company Profile
Ziska Pharmaceuticals Ltd started its journey way back in 1989. Today after one glorious decade of constant up gradation, innovation, customization, research and development, it has become a force to reckon as one of the leading finished drug manufacturer at home and abroad.
Experienced technical strength and innovation is the solid foundation on which ZISKA Pharmaceuticals Ltd. has built its success. A close knit of modern management, comprises of the Chairman and Managing Director having 20 years experience in this field. Director Marketing and Sales who is a Doctor (MBBS, FCPS), having thorough knowledge in Medical science. Director Finance, Master in Accounting & Marketing having 15 years of experience in operations of pharmaceutical activities.
Ziska has a good marketing strength includes one experienced Marketing Manager, 2 experienced Sales Manager, two Assistant Manager (Sales), thirteen Regional Sales Managers, 64 area sales manager, and around 450skilled medical promotion Officer. Besides this, a team of 07 experienced pharmacists, 10 Expert Chemists and 220 skilled workers are working in the factory round the clock and also ensuring Production of medicine strictly as per c.GMP. So the Management Team acts as a constant source of inspiration for a cohesive family of professional and technical staff in dedicating themselves fully to achieve the highest level of quality. Our PMD (Product Management Department) is constantly pursuing to introduce new innovative medicine headed by a Doctor and a group of Pharmacists.
At Ziska Pharmaceuticals Ltd. product development is a continuous process. Every manufacturing unit has its dedicated Product Development Department with the total development tools and systems.
Turnover
The turnover of Ziska Pharmaceuticals Ltd. is US $08 Million/annum. The projection of turnover of next 3 years is US $10 Million/ annum and for next 5 years it is US $15 Million.
Project Value
US $15 Million
 

3.2 Manufacturing Facilities
The site is situated at about 50 kilometer off from Dhaka city towards Answer Academy at Karol Surichalla under Shafipur Gazipur. The land is 3.50 acres, where seven separate buildings all of which are in double height building at 18 ft. out of which two building is multi-storied cover about 2.50 acres. While all the buildings are in eight storied foundations for future expansion. The facility has been designed followed by the latest recommendations of cGMP of WHO, FDA, TGA and MCA, Among the building facilities the production flow has been separated from molecule to molecule like penicillin cephalosporin and general formulations for oral, solid, liquid and injectable. The total manufacturing facilities are about 66000 sft, which has been divided into seven separate buildings.

3.3 Type of Actual Products Manufactured

 Type of products manufactured on the site
Sterile products
A. Liquid dosage forms (small volume parenteral)
  • Aseptically prepared
  • Terminally sterilized
B. Solid dosage forms (Dry powder fill)
Dedicated facility
Non-sterile products
  1. Liquid dosage forms (Syrup and Suspension)
  2. Semi solid dosage forms (Sterile and Non sterile)
  3. Solid dosage forms
  4. Single dose form (Tablets, Capsules, Sachet)
  5. Multi dose form (Powders)
Dedicated facility
 
Toxic or hazardous substances Facilities
Penicillin
(Entral and Parenteral)
Dedicated
 
Cephalosporin
(Entral and Parenteral)
Dedicated
 
 
3.4       Production Capacity:
Figure in boxes of finished product form
Dosage form Stage No. of unit Capacity
( per day)
Capacity
(per 26 days)
Capacity
(per 30 days)
Oral solid
1. Tablet 
Granulation
 
4
30000 Box750000 Box225000000 Boxes
Compression 
5
Coating 
2
Blister pack 
5
 
2. Capsule 
Encapsulation
410,000 Box260,000 Box75,000,000 Boxes
Blister pack3   
 
3. ORS 
Blending
110,000 Box250000 Box75000000 Boxes
Filling & Sachetting 1
   
 
4. Dry Powder fillBlending 
1
20000 Bottles500000 Bottles150000000 Bottles
Filling & Sealing 
1
  
 
5. LiquidLine2100000 Bottles26000 Bottles300000 Bottles
B. SemisolidCompounding120000 Boxes500000 Boxes150000000 Box
Filling & sealing1
  
 
C. Sterile Preparation
•  SVPFilling & Sealing 
2
10000 Boxes of 10 each250000 Boxes75000000 Boxes
Packing2
•  Sterile powder fillingFilling & Sealing 
1
20000 Boxes of one each500000 Boxes of one each150000000 Boxes of one each
Blister pack1
        
 
3.5       Factory Premises:
In building facilities, sandwich panels have been used in the ceiling as well as in some of the walls while joint less PVC has been used on the floor for prevention of moisture and bacterial growth. The ceiling, walls and all the contact parts are smooth and washable. In all respect of the facilities we have been maintaining unidirectional flow for man and materials.
1.Admin Block4000 sft.
2.Ware House including quarantine and Dispensing10,500 sft
3.General production building comprising Tablet, Capsule, Liquid, Ointment20500 sft
4.General production building comprising SVP QC Water treatment plant12000 sft
5.Cephalosporin production building comprising OSD and injectable4000 sft
6.Penicillin production building comprising OSD and injectable4000 sft
7.Utility ground floor comprising4000 sft
8.Utility 1st floor comprising4000 sft
9.Laundry2000 sft
 Total service floor of above 7 floors of sandwich panel40500 sft
10.ETP1000 stf
 Grand Total:106500 stf
 
The total facilities have been hooked up with purified and WFI generation and distribution system through close circuit loops. Ziska has introduced the latest double stage RO technology with ultra filtration system to generate the highest pharma grade water. While dedicated HVAC system designed for proper humidity, temperature and pressure cascade. H14 HEPA filters have been used for class "B" area and U9 filters have been used for non-sterile area to prevent the cross contamination. HVAC system has got the facility to arrest the dust particles through the back filter, then pre-filter and finally in the fine filter. On the other hand pure steam and plant steam together with oil free and moisture free compressed air make the project energy saving and effective in respect of production and human resource together. The electric system has been designed in such a way to supply the electricity un-interruptedly.
We have introduced full sorts of ETP for waste water disposal and its management. In the warehouse we are maintaining the segregation of chemicals and packing materials through industrial racking system with pallets for easy identification of materials and better management of the storing.
A group of qualified Consultants were appointed for design and development of the project. The consultants were in the following aspects.
 
 
Name of the consultant Specification of the Job Address
Environ Structure BangladeshCivil construction25,Elephant road
dhaka, Bangladesh
Joyneil Technologies Pvt. Ltd. IndiaGMP guidelines implementation39,Goria, Kolkata , India
Ethopia , SingaporeHVAC System and Clean Room TechnologyOrchard road, Singapore
Blue star, IndiaHVAC System7 Hair State, Kolkata , India
Powerman Bangladesh Ltd.For Electrical Design51, Dilkusha, Dhaka
Reytan, BelgiumFor Paneling and Clean RoomISOCAB Reytan , Belgium
Alpha lebelWater SystemIndia
DuctingOmni International, BonaniBanani , Bangladesh
PipingOrbit International38, Dilkusha, Dhaka , Bangladesh
 
3.6       Nature of construction and finishes
All R.C.C. construction, flameproof lighting fixtures and all other Constructions have been designed as per GMP guidelines to make the manufacturing areas easily cleanable. Dedicated Production buildings have been designed for general products, Beta-lactum Penicillin and Beta-lactum Cephalospirin in line with the latest International Standards. In general block separate modules have been provided for different types of manufacturing activities including sterile production area. The warehouse is a double height building with a heavy-duty floor for material handling. The floor has been covered with anti static joint less P.V.C. A latest materials storage facility has been introduced where high height storage racks , GMP compatible plastic pallets and fork lift trucks to facilitate proper material handling.
The Sampling/Dispensing areas have been provided with class 100 booths fitted with HEPA filters. This area has the facilities for central excipient milling/drying and storage for heat sensitive materials.
Utility Block is a two storied building which has been accommodated all central utilities like Gas fired Boilers, Central Chillers, Clean Air System, Electrical Distribution (HT Gears, Transformers, Distribution panels etc.) It has also the central fire fighting (Water storage and distribution system) arrangement.
The Central Chillers are PLC control while the clean air system has in built refrigeration system and 0.1 Micron filters to have clean process air of GMP standard. The plant has a central utility network consisting of the following.
  1. Plant steam and condensate
  2. Purified Water
  3. Water for Injection
  4. Raw Water
  5. Soft Water/DM Water
  6. Cooling Water (Supply and Return)
  7. Clean Air
  8. Vacuum
 
The effluents generated in the plant are treated as per international standard through a modern effluent treatment plant having a central biological treatment facility
3.7       Ventilation Systems

 
The HVAC system for the manufacturing area has been designed as per international GMP standard to avoid cross contamination. The general production areas are protected with adequate terminal filters. Dust control arrangements in dust producing area have been done with adequate Bag filters. Proper pressure Cascade has been provided and the HVAC provides suitable temperature and humidity control. Sterile Area Class A/B clean rooms have been provided with adequate temperature and humidity control.

3.8       Parenteral Manufacturing Area

 
The areas have been designed with sandwich panels, interlocked doors (Changes), Air shower and pass boxes to achieve class 100 Aseptic filling conditions. These areas have 45 Pascal pressure to meet the latest GMP stipulations. The Injectable production area has been provided with latest GMP model Dry Heat Sterilizers, Autoclaves and provision of Filling/Sealing under Laminar Air Flow. The HVAC system has been developed with adequate controlled temperature/pressure and differential pressure under critical conditions like sudden depressurization through door opening.

The Beta-lactum areas are designed for negative pressure in respect to Corridor/ air lock for contamination control.
The HVAC System has been designed with four number of Package unit of R22 and a number of clean room material took place in the design of low side to meet room specifications.

3.9       The general specification of the Clean Room is as follows:

Room No.F-SVP-09F-SVP-10F-SVP-02F-SVP-01F-SVP-012F-SVP-13F-SVP-23
Room NameAmp.
Wash
Amp.
Filling/
Sealing
Soln.
Prep.
Room
Cont.
Prep.
Room
Air LockAir LockSterile
Cor.
ClassDBCDDBD
Area(approx) sq. m41.9541.6228.948.914.642.329.754
Height, m
 
2.74
(without F.C.)
2.74
(without F.C.)
2.74
(without F.C.)
2.74
(without F.C.)
2.74
(without F.C.)
2.74
(without F.C.)
2.74
(without F.C.)
Overpressure In mm WG25 Pa45 Pa35 Pa25 Pa25 Pa45 Pa25 Pa
Temp
(+/- 2 o C)
22 o C22 o C22 o C22 o C22 o C22 o C22 o C
Humidity
(RH %)(+/- 2%)
50505050505050
Air Changes
(+/- 20%)
201206020102010
 
The HVAC System consist of a centrifugal fan of capacity 6500m3 per hour with a fan motor of 5 HP. The pre-filter box at fan supply path consists of pre-filters (90% down to 10 microns) and fine filters (95% down to 5 microns). There are 8 numbers supply air terminals with HEPA filters (99.97% down to 0.3 microns) and volume control dampers.
Return air grills are fitted with volume control dampers. There are two numbers fire damper (fusible type at supply and return path).
There is manometer across the pre-filter box. There are also manometers to measure the pressure differentials between each class of rooms.
Thermal insulation provided (25 mm thick thermocol slab on supply and return duct).

The HVAC System in Tablet Granulation area consists of adequate Dust collection arrangement along with Split A/C s to maintain comfort level and humidity.
Special areas for the handling of highly toxic, hazardous and sensitizing materials
Special Storage facility has been made for Heat Sensitive and moisture raw Materials inside the store.
3.10     Water Systems (schematic drawings of the systems are desirable) including sanitation.

 
The water system of the plant consists of a purified water generation system. The latest Reverse Osmosis system with multi column Distillation plant has been installed. The users point are covered with SS 316L distribution loop with proper sanitation facilities. The entire water system has been designed and installed by M/S Alfa Label complying USP 26. The Multicolumn Distillation plant consists of 3 No. SS316 columns, insulated with glass wool and SS304 cladded with 1 Number condenser which is also made out of SS316L. The distillation column operates at different pressure and temperature making it possible to transfer the energy in process forward column to column. The feed water system consists of a multistage feed water pump and a search tank with low-high level controller. Two flow meters are provided in feed water and cooling water lines. The centrifugal pump is used for circulating the cooling water. The steam inlet system consists of the steam inlet valve and a safety valve. The unit is designed to produce minimum 150 L of WFI per hour, as per USP26. The Unit has a DM Plant of 1000L per hour capacity.
 

3.11                 Quality Control

 
The system of Quality Assurance in Ziska Pharmaceuticals Ltd. ensures that:
  1. The Pharmaceutical Products are designed and developed in a way that takes into account the requirements of Good Manufacturing Practices as described in Schedule of Drugs and Cosmetics Rules.
  2. Adequate arrangements are made for manufacture, supply and use of correct starting and packaging materials
  3. Adequate controls on starting materials, intermediate products and bulk products and other In- process controls, calibrations and validations are carried out.
  4. The finished products are correctly processed and checked in accordance with established procedures
  5. The Products are not released for sale or supplied before authorised persons have certified that each production batch has been produced and controlled in accordance with the requirements of the label claim and any other provisions relevant to production, control and release of finished products.
3.12 Technologies
 

 
  • One of the finest infrastructure and facilities in Asia designed by a group of foreign   consulting firms.
  • Centrally monitored fully automated system.
  • Cutting edge state of the art technology for production.
  • More than 66,000 sft covered area for production.
  • Complies with International GMP Standards
    (USFDA, UKMCA, TGA & WHO GMP).
  • Dedicated Production building for Penicillin, Cephalosporin & General products.
  • Dedicated HVAC System.
  • Centralized PW & WFI generation & distribution system.
  • Joint less PVC flooring.
  • Walk on false ceiling by sandwich panel.
  • Centralized Utility.
  • Effluent Treatment Plant.
 
  • 3.13           Product Catalog
Brand NameGeneric NamePack SizeDetails
ASNIL SyrupSalbutamol BP100 ml
ATEVAL TabletFluphenazine +Nortriptyline10×10's
AZITHROMAX 500 TabletAzithromycin USP1X5's
BUTACIN TabletHyoscine Butyl Bromide10X10's
CALDICAL 500 TabletCalcium Carbonate10X5's
CEFADIN PFSCephradine100 ml
CEFADIN 500 CapsuleCephradine4X7's
CIPROZ 750 TabletCiprofloxacin Hydrochloride2X10's
CIPROZ 500 TabletCiprofloxacin Hydrochloride10X3's
CIPROZ PFSCiprofloxacin Hydrochloride60 ml
CLOXI -Z 500 CapsuleCloxacillin Sodium25X4's
DELTAPRED TabletPrednisolone50X10's
DEXTASON TabletsDexamethason Na phosphate BP10X10's
DICLONAC 50 TabletDiclofenac Sodium20X10\'s
Brand NameGeneric NamePack SizeDetails
DOMIDON SuspensionDomperidone60 ml
DOMIDON TabletDomperidone10X10's
FLUCOSTAN 50 CapsuleFluconazole INN5X4's
FLUXICAP 250 CapsuleFlucloxacillin Sodium BP4X10's
FLUXICAP 500 CapsuleFlucloxacillin Sodium BP4X10's
FLUXI SYRUPFlucloxacillin Sodium BP100ml
FOZI TR CapsuleFe Sulp+Folic acid+Zn sulp10X50's
GRISO 500 TabletGrisofulvin10X100's
IRUFEN 400 TabletIbuprofen10X10's
LEMOVIT-C TabletAscorbic Acid10X20's
LORACIL TabletLoratadine INN10×100's
MELXIT TabletFlupentixol BP & Melitracen INN5×10's
METRO 400 TabletMetronidazole10X10's
METRO SuspensionMetronidazole60 ml
MONOSPRIN TabletAspirin BP10X10's
Brand NameGeneric NamePack SizeDetails
NEUBIN TabletVitamin-B Complex3X10's
NEUBIN InjVitamin-B Complex2X5's
NOMOTIL CapsuleLoperamide Hydrochloride USP10X20's
OMEPROL 20 CapsuleOmeprazole BP4X5X20's
ZIMOXYL 250 CapsuleAmoxicllin Trihydrate BP10X10's
ZIMOXYL 500 TabletAmoxicllin Trihydrate BP5X10's
ZIMOXYL PFSAmoxicllin Trihydrate BP100 ml
EFEPIME InjCefepime 
TRIPHIN InjCeftriaxone 
ZISKAVIT InjVitamin-B Complex2 x 5 ampoules
CELOXIBCelecoxib INN10*30
HONYTUSGlycerol & Liquid Sugar100
NAPRONIX 250 mgNaproxen USP5 X 10's
NAPRONIX 500 mgNaproxen USP3 X 10's
TEXILIXAntitussive Syrup1*100
Brand NameGeneric NamePack SizeDetails
TONIC-ZIron, Vitamin-B Complex & Zinc Syrup1*100
TRUGAINMinoxidil USP 
VITATON-ZIIron, Vitamin-B Complex & Zinc Syrup 
ZINCORAL TabletZinc Sulfate USP3×10's
 
3.14 Marketing
Our Activity:
  • Local Marketing
  • Export
  • Contract Manufacturing
We have countrywide marketing networks operated from 9 (nine) regional offices located in Dhaka, Chittagong, Comilla, Bogra, Faridpur, Maymensingh, Sylhet and Barisal
Annual Turnover : 80 Crore BDT.
Total Manpower in Marketing and Sales: 500.
  1. Balance Sheet (Unaudited):
 
    
Ziska Pharmaceuticals Ltd.
Balance Sheet (Unaudited)
As at Dec-31, 2010
    
 As at Dec’31 2010 As at Dec’31 2009
ASSETS    
Non-Current Assets313,605,325 272,836,633
Property, Plant and  Equipment- Carrying Value 228,985,636 199,217,503
Intangible Assets84,619,689 73,619,129
    
Current Assets475,868,982 414,006,014
Inventories52,987,654 46,099,259
Spares & Supplies29,654,320 25,799,258
Accounts Receivable189,828,765 165,151,026
Loans, Advances and Deposits158,789,544 138,146,903
Short Term Investment37,854,923 32,933,783
Cash and Cash Equivalents6,753,776 5,875,785
TOTAL ASSETS789,474,307 686,842,647
    
SHAREHOLDERS' EQUITY AND LIABILITIES   
Shareholders' Equity120,000,000 104,400,000
Issued Share Capital120,000,000 104,400,000
    
Non-Current Liabilities 510,505,865 444,140,103
Long Term Borrowing-Net of Current Maturity (Secured)508,017,190 441,974,955
Deferred Tax Liability 441,888 352,4162,488,675 2,165,147
    
Current Liabilities and Provisions158,968,442 138,302,545
Short Term Borrowing136,962,883 119,157,708
Long Term Borrowing-Current Maturity1,165,416 1,013,912
Creditors and other Payables7,789,500 6,776,865
Accrued Expenses575,000 500,250
Income Tax Payable12,475,643 10,853,809
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 789,474,307 686,842,647
    
    
    
    
      
 
4.2       Profit Analysis:
 
Loss Profit Analysis
 
 
    
 As at Dec’31 2010 As at Dec’31 2009
    
Net Sales Revenue902,180,897  784,897,380
    
Cost of Goods Sold559,040,923 519,908,058
Gross Profit343,139,974  264,989,322
    
Operating Expenses : (242,030,461) (225,088,329)
Administrative  Expenses(61,513,805) (57,207,839)
Selling and Distribution Expenses(180,516,656) (167,880,490)
    
Profit from Operations585,170,435  490,077,651
    
Other Income25,890,300 24,492,224
Finance Cost(21,567,850) (20,403,186)
Profit before Contribution to WPPF589,492,885  494,166,689
    
Contribution to Workers'   
Profit Participation/ Welfare Funds(235,765,800) (223,034,447)
    
Profit before Tax353,727,085  271,132,242
Income Tax(586,385) (554,720)
Profit after Tax353,140,700  270,577,522
    
 
4.3       Cash Flow Statement (Unaudited):
 
 
  
Ziska Pharmaceuticals Ltd. 
Cash Flow Statement (Unaudited) 
As at Dec-31, 2010 
     
 As at Dec’31 2010 As at Dec’31 2009 
Cash Flows from Operating Activities :                         
     
Cash Receipts from Customers and Others902,180,897 784,897,380 
Cash Paid to Suppliers and Employees(418,673,273) (364,245,748) 
Cash Generated from Operations483,507,624  420,651,633  
     
Interest Paid(217,282) (189,035) 
Income Tax Paid(586,385) (510,155) 
Net cash Generated from Operating Activities484,311,291 421,350,823  
     
Cash Flows from Investing Activities :    
Acquisition of Property, Plant and Equipment (net of IDCP)(29,768,133) (25,898,276) 
Intangible Assets(11,000,560) (9,570,487) 
Short Term Investment4,921,140 4,281,392 
Disposal of Property, Plant and Equipment1,550,000 1,348,500 
Net Cash used in Investing Activities(34,297,553) (29,838,871) 
     
Cash Flows from Financing Activities :    
     
Net (Decrease)/Increase in Long Term Borrowings66,042,235 57,456,744 
Net (Decrease) /Increase in Short Term Borrowings17,805,175 15,490,502 
Net Cash Generated from Financing Activities83,847,410 72,947,247  
Increase/(Decrease) in Cash and Cash Equivalents117,283,517 102,036,660 
Cash and Cash Equivalents at Beginning of Period178,456,784 155,257,402 
     
Cash and Cash Equivalents at End of Period295,740,301  257,294,062  
     
 
4.4       Inventories, Loans, Advances and Deposits, Cash and Cash Equivalents Analysis
    
 As at Dec’31 2010 As at Dec’31 2009
Inventories   
Finished Goods21,005,270 18,274,585
Materials   
(Including Work in Process and Transit)120,567,650 104,893,856
Sample & Others459,680  399,922
 142,032,600  123,568,362
    
Loans, Advances and Deposits   
Motor Cycle Loan18,880,744 17,370,284
Sequrity and Other Deposit138,450 127,374
Advance for Expense1297107 1,193,338
Salary Advance5,635,972 5,185,094
Sundry Party787,542 724,539
Others   
 26,739,815  24,600,630
Cash and Cash Equivalents   
Cash in Hand , Transit & Bank7,360,817 6,992,776
 7,360,817  6,992,776
Long Term Borrowing   
    
A Non Current Maturity   
Project Loan98,519,307 93,593,342
Obligation under Finance Lease20,726,265 19,689,952
 119,245,572  113,283,293
 
 

4.5       Cost of Goods Sold, Administrative Expenses, Selling and Distribution Expenses Analysis
 

    
 As at Dec’31 2010 As at Dec’31 2009
Cost of Goods Sold   
Materials120,567,650 112,127,915
Factory Overhead418,673,273 389,366,144
Depreciation19,800,000 18,414,000
 559,040,923  519,908,058
    
Administrative  Expenses   
Salary & Allowances14,985,221 13,936,256
Fuel, Repairs & Office Maintenance2,613,774 2,430,810
Travelling & Conveyance  0
AGM and Company Secretarial Expenses3,549,758 3,301,275
Other Expenses37,827,816 35,179,869
Depreciation1,247,824 1,160,476
 61,513,805  57,207,839
    
Selling and Distribution Expenses   
Salary & Allowances10,821,756 10,064,233
Travelling & Conveyance1,289,412 1,199,153
Market Research & New Products456,000 424,080
Sample, Literature & Promotional Expenses1,234,530 1,148,113
Delivery Commission13,339,679 12,405,901
Depreciation505,200 469,836
Other Expenses152,870,079 142,169,173
 180,516,656  167,880,490
4.6       Ratio Analysis
 
Financial strength ratios go by many names (liquidity, solvency, financial leverage), but they all point to the same thing.
 
balance sheet–oriented value investor looks closely to make sure that the company will be around tomorrow. Value investors first look at financial strength ratios for obvious danger.
 

Current and "quick" ratios

These commonly used liquidity ratios help evaluate a company's ability to pay its short-term obligations:
 
Current ratio    = current assets / current liabilities
                        = 475,868,982 / 158,968,442
                        = 2.99
The current ratio includes all current assets, but since inventory is often difficult to turn into cash, many analysts remove it from the equation to arrive at a quick ratio.
The quick ratio emphasizes coverage assets quickly convertible into cash:
Quick ratio       = (current assets – inventory) / current liabilities
                        = (475,868,982 – 52,987,654) / 158,968,442
                        = 2.66
The traditional thinking is that the higher the ratio, the better off the company. Greater than 2:1 for the current ratio or 1:1 for the quick ratio is good and safe; less than 2:1 or 1:1 is a sign of impending problems meeting obligations.

 

Debt to equity and debt to assets

 
Sometimes also called solvency, or leverage, ratios, this set measures what portion of a firm's assets are provided by the owners versus provided by others.
 
Too much long-term debt costs money, increases risk, and can place restrictions on management in the form of restrictive lender covenants governing what a company can and can't do. The two most common ratios used to assess solvency and leverage are debt to equity and debt to total assets:
 
Debt to equity = total debt / owner's equity
                                    = 189,828,765 / 120,000,000
                                    = 1.58
 
(Note that current liabilities, such as accounts payable, typically are not included.)
 
Debt to total assets       = total debt / total assets
                                    = 189,828,765 / 789,474,307
                                    = 0.24
 
When a company has more debt than equity, yellow flags fly, but industry comparisons are important. Economic value achieved should exceed the cost and risk incurred with the debt. Solvency measures probably deliver a stronger signal for what not to buy than what to buy.

 

 

Cash flow ratios

Because cash is really the lifeblood of a business, financial strength assessments typically look at cash and cash flow ratios. But there's a hidden agenda behind these ratios: to assess earnings quality.
 
The overall cash flow ratio tells whether a business is generating enough cash from its business to sustain itself, grow, and return capital to its owners:
 
Overall cash flow ratio = cash inflow from operations /
                                       (Investing cash outflows + financing cash outflows)
                                    = 484,311,291 / 34,297,553 + 83,847,410
                                    = 4.99
 
If the overall cash flow ratio is greater than 1, the company is generating enough cash internally to cover business needs. If it's less than 1, the company is going to capital markets or is selling assets to keep afloat.
 
It's best when cash flows march in step with or exceed earnings. If earnings increase without a corresponding increase in cash flow, earnings quality comes into question. Use the cash flow to earnings ratio as a base measure:
 
Cash flow to earnings = cash flow from operations / net earnings
                                                = 484,311,291 / 353,140,700
                                                = 1.37
 
Because depreciation and other noncash amortizations vary by industry, it's hard to hang a specific goal on this measure. Consistency over time is good, as are favorable industry comparisons. Further, it's good when period-to-period earnings increases are accompanied by corresponding cash flow increases.

5.1       Date taken from Depot Survey:
 

Bogra depot
 
 
 C/C CodeName of the Expenditure Exp Exp Net Exp
 as on 31 Jan2011 as on 28 Feb 2011 For the month of Feb 2011 
4040121Salary                   813,326 1624056                               810,730.00
4040102Ta/ Da Allowance                   404,590 844077                               439,487.00
4040103Brand Loyality                   194,500                    394,500                                200,000.00
4040104Rent/Bill                     31,120                      61,545                                  30,425.00
4040105Delivery Cost                     32,938                      88,607                                  55,669.00
4040106Booking Cost/Postage Charge                     23,661                      41,252                                  17,591.00
4040107DD Cost/ Bank Charge                       3,105                        4,899                                    1,794.00
4040108Donation/Gift                       9,600                      57,400                                  47,800.00
4040109Conveyance                       5,191                      10,390                                    5,199.00
4040110Computer Paper/Ribon                          660                           990                                       330.00
4040111Fuel & Tool                          742                        1,774                                    1,032.00
4040112Stationary & Photocopy                       6,833                        7,803                                       970.00
4040113Entertainment & Confer. Cost                     21,955                      25,195                                    3,240.00
4040114Miscelance                          803                        1,403                                       600.00
4040115Cash Incentive                       6,500                    102,000                                  95,500.00
4040117Sales Commission                   177,074                    597,941                                420,867.00
4040118Product Bonus                     47,330                      99,490                                  52,160.00
4040119Postage Charge                       1,205                        2,400                                    1,195.00
4040120Photocopy                          565                           937                                       372.00
4040121Car Maintinance                       3,730                        6,870                                    3,140.00
4040122Hardship Allowance                       6,510                      11,350                                    4,840.00
4040124Carring Outward                     10,274                      29,881                                  19,607.00
4040125Gold Leaf & Jute                       4,829                        9,328                                    4,499.00
4040127Carring Inward                     11,932                      29,779                                  17,847.00
4040123Loss & Damage                                                –  
 Total                1,818,973 4053867                            2,234,894.00
     
     
  
 
 
 
 
 
   
     
Chittagong depot
 
 
 C/C CodeName of the Expenditure Exp Exp Net Exp
 as on 31 Jan2011 as on 28 Feb 2011 For the month of Feb 2011 
4040203Brand Loyality                   234,000                    473,000                                239,000.00
4040201Salary                   742,890                 1,517,898                                775,008.00
4040202Ta/ Da Allowance                   357,199                    742,054                                384,855.00
4040204Rent/Bill                     28,700                      58,246                                  29,546.00
4040205Delivery Cost                     91,130                    137,946                                  46,816.00
4040206Booking Cost/Postage Charge                       4,795                      14,315                                    9,520.00
4040207DD Cost/ Bank Charge                       1,847                        3,058                                    1,211.00
4040208Donation/Gift                     46,150                      64,650                                  18,500.00
4040209Conveyance                       1,089                        4,079                                    2,990.00
4040210Computer Paper/Ribon                          850                        1,800                                       950.00
4040211Fuel & Lubricants                       1,800                        1,800                                               –  
4040212Stationary & Photocopy                       7,271                        7,950                                       679.00
4040213Entertainment & Confer. Cost                     21,210                      25,720                                    4,510.00
4040214Miscelance                     20,075                      27,940                                    7,865.00
4040215Cash Incentive                     13,000                      19,500                                    6,500.00
4040217Sales Commission                     79,417                    218,965                                139,548.00
4040218Product Bonus                     20,326                      44,647                                  24,321.00
4040219Postage Chargre                       1,090                        1,880                                       790.00
4040220Photocopy                          301                           426                                       125.00
4040221Car Maintinance                     10,300                      10,300                                               –  
4040222Hardship Allowance                          642                        1,212                                       570.00
4040224Carring Outward                     20,724                      22,147                                    1,423.00
4040225Gold Leaf & Jute                       4,213                        8,917                                    4,704.00
4040226Office Maint. 2720                                   2,720.00
4040227Carring Inward                       6,687                      21,227                                  14,540.00
4040223Loss & Damage                                                –  
 Total                1,715,706                3,432,397                            1,716,691.00
     
     
     
Faridpur depot
 
 C/C CodeName of the Expenditure Exp Exp Net Exp
 as on 31 Jan2011 as on 28 Feb 2011 For the month of Feb 2011 
4040303Brand Loyality                   223,500                    491,500                                268,000.00
4040301Salary                   942,426                 1,931,682                                989,256.00
4040302Ta/ Da Allowance                   480,987                    933,104                                452,117.00
4040304Rent/Bill                     25,214                      50,340                                  25,126.00
4040305Delivery Cost                     61,240                    130,132                                  68,892.00
4040306Booking Cost/Postage Charge                       4,925                        8,940                                    4,015.00
4040307DD Cost/ Bank Charge                       1,599                        3,633                                    2,034.00
4040308Donation/Gift                     81,460                      81,460                                               –  
4040309Conveyance                       3,271                      10,159                                    6,888.00
4040310Computer Paper/Ribon                       1,060                        2,297                                    1,237.00
4040311Fuel & Lubricants                          400                        1,250                                       850.00
4040312Stationary & Photocopy                       9,589                      10,430                                       841.00
4040313Entertainment & Confer. Cost                     27,380                    125,282                                  97,902.00
4040314Miscelance                       4,595                        8,601                                    4,006.00
4040315Cash Incentive                     19,000                    102,000                                  83,000.00
4040317Sales Commission                   160,650                    289,787                                129,137.00
4040318Product Bonus                     32,172                      52,093                                  19,921.00
4040319Postage Charge                           285                                       285.00
4040321Car Maint.                          290                        2,770                                    2,480.00
4040322Hardship Allowance                          450                        1,750                                    1,300.00
4040324Carring Outward                     47,422                      84,461                                  37,039.00
4040325Gold Leaf & Jute                       4,681                        9,554                                    4,873.00
4040326Office Maint.                           500                                       500.00
4040327Carring Inward                     17,245                      31,332                                  14,087.00
4040320Photocopy                            41                                        (41.00)
4040323Loss & Damage                           188                                       188.00
 Total                2,149,597                4,363,530                            2,213,933.00
 
 
Sylhet Depot
 
 C/C CodeName of the Expenditure Exp Exp Net Exp
 as on 31 Jan2011 as on 28 Feb 2011 For the month of Feb 2011 
4040403Brand Loyality                   206,000                    417,000                                211,000.00
4040401Salary                   470,683                    986,227                                515,544.00
4040402Ta/ Da Allowance                   205,458                    390,904                                185,446.00
4040404Rent/Bill                     30,470                      60,320                                  29,850.00
4040405Delivery Cost                     28,078                      62,496                                  34,418.00
4040406Booking Cost/Postage Charge                     22,974                      50,184                                  27,210.00
4040407DD Cost/ Bank Charge                          259                        1,261                                    1,002.00
4040408Donation/Gift                       8,495                      77,442                                  68,947.00
4040409Conveyance                       3,038                        4,694                                    1,656.00
4040410Computer Paper/Ribon                          980                        1,800                                       820.00
4040411Fuel & Lubricants                            45                             45                                               –  
4040412Stationary & Photocopy                          576                           811                                       235.00
4040413Entertainment & Confer. Cost                     23,672                      26,512                                    2,840.00
4040414Miscelance                       1,000                        1,500                                       500.00
4040417Sales Commission                     29,342                      68,400                                  39,058.00
4040418Product Bonus                       8,949                      26,767                                  17,818.00
4040415Cash Incentive                        2,000                                    2,000.00
4040419Postage Charge                          244 568                                      324.00
4040420Photocopy                          110                           290                                       180.00
4040421Car Maintinance                       5,000                        6,900                                    1,900.00
4040424Carring Outward                       3,724                        9,097                                    5,373.00
4040425Gold Leaf & Jute                       2,996                        2,996                                               –  
4040427Carring Inward                       9,698                                   (9,698.00)
4040423Loss & Damage                                                –  
4040426Office Maint.                           353                                       353.00
4040427Carring Inward                      30,862                                  30,862.00
 Total                1,061,791                2,229,429                            1,167,638.00
     
     
Dhaka Depot
 
 C/C CodeName of the Expenditure Exp Exp Net Exp
 as on 31 Jan2011 as on 28 Feb 2011 For the month of Feb 2011 
4040503Brand Loyality                   308,300                    632,500                                324,200.00
4040501Salary                1,360,318                 2,743,272                             1,382,954.00
4040502Ta/ Da Allowance                   665,923                 1,344,638                                678,715.00
4040504Rent/Bill                     66,070                    166,683                                100,613.00
4040505Delivery Cost                   113,090                    226,552                                113,462.00
4040506Booking Cost                           370                                       370.00
4040507Bank/DD Charge                          418                        1,113                                       695.00
4040508Donation/Gift                   247,052                    362,842                                115,790.00
4040509Conveyance                     14,285                      24,330                                  10,045.00
4040510Computer Paper/Ribon                       7,995                      11,395                                    3,400.00
4040511Fuel & Lubricants                                                –  
4040512Photocopy                          148                           163                                         15.00
4040513Postage Charge                                                –  
4040514Stationary                       2,125                        2,275                                       150.00
4040415Conference Entertainment                     62,212                      67,402                                    5,190.00
4040517Cash Incentive                     17,500                      23,974                                    6,474.00
4040518Sales Commission                   138,595                    688,023                                549,428.00
4040519Product Bonus                     48,373                      80,063                                  31,690.00
4040521Car Maintinance                       2,318                        4,118                                    1,800.00
4040522Hardship Allowance                       5,124                      12,794                                    7,670.00
4040523Loss & Damage                     41,594                      41,594                                               –  
4040524Carring Outward                     40,024                      67,043                                  27,019.00
4040525Gold Leaf & Jute                     22,135                      23,335                                    1,200.00
4040527Repair & Maint.                       7,048                        7,549                                       501.00
4040529Miscelance                       2,200                        2,200                                               –  
 Total                3,172,847                6,534,228                            3,361,381.00
     
 
 
Barisal Depot
     
 C/C CodeName of the Expenditure Exp Exp Net Exp
 as on 31 Jan2011 as on 28 Feb 2011 For the month of Feb 2011 
4040603Brand Loyality                   159,160                    332,760                                173,600.00
4040601Salary                   440,241                    687,075                                246,834.00
4040602Ta/ Da Allowance                   194,481                    407,507                                213,026.00
4040604Rent/Bill                     20,136                      30,240                                  10,104.00
4040605Delivery Cost                       1,775                      60,259                                  58,484.00
4040606Booking Cost                     28,446                      54,519                                  26,073.00
4040607Bank Charge/DD Cost                          525                        1,902                                    1,377.00
4040608Donation/Gift                       7,900                      18,105                                  10,205.00
4040609Conveyance                       1,295                        3,805                                    2,510.00
4040610Computer Paper/Ribon                       1,082                        1,920                                       838.00
4040612Stationary                       4,520                        4,520                                               –  
4040613Entertainment & Conference Cost                     10,746                      14,087                                    3,341.00
4040614Misc Exps                       9,063                        9,648                                       585.00
4040615Cash Incentive                     13,000                      27,500                                  14,500.00
4040617Sales Commission                     28,769                      79,647                                  50,878.00
4040618Product Bonus                      20,592                                  20,592.00
4040619Postage Charge                          720                        1,120                                       400.00
4040620Photocopy                          190                           340                                       150.00
4040622Hardship Allowance                        2,340                                    2,340.00
4040624Carring Outward                       2,508                        6,478                                    3,970.00
4040625Gold Leaf & Jute                       4,239                        8,045                                    3,806.00
4040623Loss & Damage                                                –  
 Total                   928,796                1,772,409                               843,613.00
 
 
 
 
 
Comilla Depot
 
A/C CodeName of the ExpenditureExpExpNet Exp
as on 31 Jan2011as on 28 Feb 2011For the month of Feb 2011
4040701Salary                   867,139                 1,102,169                                235,030.00
4040702Ta/ Da Allowance                   412,220                    786,217                                373,997.00
4040703Brand Loyality                   261,300                    515,100                                253,800.00
4040704Rent/Bill                     22,134                      42,964                                  20,830.00
4040705Delivery Cost                   109,272                    195,538                                  86,266.00
4040706Booking Cost                     74,804                    146,053                                  71,249.00
4040707DD Cost/ Bank Charge                          908                        1,450                                       542.00
4040708Donation/Gift                     28,675                      58,060                                  29,385.00
4040709Conveyance                       4,884                        7,527                                    2,643.00
4040710Computer Paper/Ribon                       5,740                      15,970                                  10,230.00
4040711Fuel/Tools                          820                        1,632                                       812.00
4040712Office Stationary                           901                        1,241                                       340.00
4040713Entertainment                     42,115                      47,592                                    5,477.00
4040714Miscelance                          355                        1,690                                    1,335.00
4040715Cash Incentive                        7,500                                    7,500.00
4040717Sales Commission                   209,978                    392,148                                182,170.00
4040718Product Bonus                     20,770                      36,645                                  15,875.00
4040719Postage Charge                          995                        2,285                                (18,485.00)
4040720Photocopy                          322                           619                                     (376.00)
4040721Car Maintinance                       2,800                      13,450                                  13,128.00
4040722Hardship Allowance                       1,800                        2,520                                     (280.00)
4040724Carring Outward                       6,765                      19,454                                  17,654.00
4040725Gold Leaf & Jute                       3,100                        7,550                                       785.00
4040326Office Maint.                           325                                       325.00
4040727Carring Inward                       9,236                      17,546                                    8,310.00
 Total                2,087,033                 3,423,245                             1,336,212.00
 
 Mymensingh Depot
     
A/C CodeName of the ExpenditureExpExpNet Exp
as on 31 Jan2011as on 28 Feb 2011For the month of Feb 2011
4040801Salary                   499,038                 1,035,264                                536,226.00
4040802Ta/ Da Allowance                   225,545                    447,323                                221,778.00
4040803Brand Loyality                   163,000                    317,000                                154,000.00
4040804Rent/Bill                     20,242                      41,914                                  21,672.00
4040805Delivery Cost                     30,797                      57,002                                  26,205.00
4040806Booking Cost                     37,080                      81,800                                  44,720.00
4040807DD Cost/ Bank Charge                          338                        1,699                                    1,361.00
4040808Donation/Gift                     13,985                      45,185                                  31,200.00
4040809Conveyance                       1,843                        2,858                                    1,015.00
4040810Computer Paper                           820                                       820.00
4040811Fuel                           309                                       309.00
4040812Office Stationary                        6,135                        7,061                                       926.00
4040813Entertainment                     15,043                      17,193                                    2,150.00
4040814Miscelance                       2,314                        3,128                                       814.00
4040815Cash Incentive                       2,000                        2,000                                               –  
4040817Sales Commission                     36,064                    191,957                                155,893.00
4040818Product Bonus                       9,435                      17,207                                    7,772.00
4040819Postage Charge                          555                           965                                       410.00
4040820Photocopy                          160                           254                                         94.00
4040821Car Maintinance                       4,645                        8,725                                    4,080.00
4040822Hardship Allowance                            50                             50                                               –  
4040824Carring Outward                          350                        8,822                                    8,472.00
4040825Gold Leaf & Jute                          850                           850                                               –  
4040827Carring Inward                       8,352                      14,608                                    6,256.00
 Total                1,077,821                 2,303,994                              1,226,173.00
     
 
Rangpur Depot
 
     
     
 C/C CodeName of the Expenditure Exp Exp Net Exp
 as on 31 Jan2011 as on 28 Feb 2011 For the month of Feb 2011 
4040901Salary                   745,621                 1,525,364                                779,743.00
4040902Ta/ Da Allowance                   395,387                    801,752                                406,365.00
4040903Brand Loyality                   272,500                    566,000                                293,500.00
4040904Rent/Bill                     24,017                      33,409                                    9,392.00
4040905Delivery Cost                     36,735                      97,093                                  60,358.00
4040906Booking Cost                     33,053                      79,225                                  46,172.00
4040907DD Cost/ Bank Charge                       6,628                      13,322                                    6,694.00
4040908Donation/Gift                     44,510                      57,410                                  12,900.00
4040909Conveyance                     13,353                      24,038                                  10,685.00
4040910Computer Paper/Ribon                       1,620                        3,225                                    1,605.00
4040911Fuel/Tools                          398                           398                                               –  
4040912Office Stationary                        4,182                        7,430                                    3,248.00
4040913Entertainment                     22,805                      27,385                                    4,580.00
4040914Miscelance                          508                        1,429                                       921.00
4040915Cash Incentive                    129,000                                129,000.00
4040917Sales Commission                     86,694                    232,646                                145,952.00
4040918Product Bonus                     14,860                      30,245                                  15,385.00
4040919Postage Charge                       1,054                        2,080                                    1,026.00
4040920Photocopy                       1,665                        3,456                                    1,791.00
4040921Car Maintinance                       1,091                        3,349                                    2,258.00
4040922Hardship Allowance                          570                        2,370                                    1,800.00
4040924Carring Outward                       8,529                      19,556                                  11,027.00
4040925Gold Leaf & Jute                       4,550                        9,575                                    5,025.00
4040926Office Maint.                       1,020                                   (1,020.00)
4040927Carring Inward                     16,230                      32,952                                  16,722.00
 Total                1,737,580                 3,702,709                             1,965,129.00
Total expenditure =                          16,065,664.00
5.1       Suggestions and Recommendations
The current ratio includes all current assets, but since inventory is often difficult to turn into cash, many analysts remove it from the equation to arrive at a quick ratio.
The traditional thinking is that the higher the ratio, the better off the company. Greater than 2:1 for the current ratio or 1:1 for the quick ratio is good and safe; less than 2:1 or 1:1 is a sign of impending problems meeting obligations.
Too much long-term debt costs money, increases risk, and can place restrictions on management in the form of restrictive lender covenants governing what a company can and can't do. The two most common ratios used to assess solvency and leverage are debt to equity and debt to total assets:
When a company has more debt than equity, yellow flags fly, but industry comparisons are important. Economic value achieved should exceed the cost and risk incurred with the debt. Solvency measures probably deliver a stronger signal for what not to buy than what to buy.
The overall cash flow ratio tells whether a business is generating enough cash from its business to sustain itself, grow, and return capital to its owners:
If the overall cash flow ratio is greater than 1, the company is generating enough cash internally to cover business needs. If it's less than 1, the company is going to capital markets or is selling assets to keep afloat.
It's best when cash flows march in step with or exceed earnings. If earnings increase without a corresponding increase in cash flow, earnings quality comes into question. Use the cash flow to earnings ratio as a base measure:
Because depreciation and other noncash amortizations vary by industry, it's hard to hang a specific goal on this measure. Consistency over time is good, as are favorable industry comparisons. Further, it's good when period-to-period earnings increases are accompanied by corresponding cash flow increases.
 
5.2 CONCLUSION
 
Since the introduction of the Ratio Analysis in Ziska Pharmaceuticals Limited in 2011, it has been used effectively and efficiently in the evaluation of financial strength. We conducted a study through personal collect data, survey and we tried for a through understanding of the process with its benefits as well as shortcomings. It has been found that there are some positive and negative sides of this financial strength. Positive is that its well financial security. On the other hand, the negative sides are: sometimes the frequency of evaluation is not quarterly as it was mentioned in the ratio analysis; still there is a chance of subjectivity, which the expenditure will to be reduced. But overall, the financial strength is satisfied, although not highly satisfied with the existing financial strength.
 
 
APPENDIX B: Bibliography
 
Textbooks
 
*      Corporate Financial Analysis:
By Francis J. Clauss – McGraw-Hill (2009)
 
*      Financial Analysis Tools and Techniques:
By Erich A. Helfert – McGraw-Hill (2001)
 
*      Financial Statement Analysis:
By Clyde P. Stickney, Paul Brown, James M. Wahlen, Stephen P. Baginski, Mark Bradshaw – Cengage Learning (2010)
 
*      Financial Statement Analysis:
By Steven M. Bragg – Wiley (2006)
 
Other Publications
  • Ziska Pharmaceuticals Ltd. Annual report of the year 2009-10
 
  • Internship/Thesis Reports of Southeast University
 
  • Various journals and magazines
 
Websites
Some websites are visited for collecting some secondary data, which are: