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
3.3 Type of Actual Products Manufactured
Type of products manufactured on the site | ||||||||
Sterile products
A. Liquid dosage forms (small volume parenteral)
B. Solid dosage forms (Dry powder fill)
|
Dedicated facility | |||||||
Non-sterile products
|
Dedicated facility | |||||||
|
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 Box | 750000 Box | 225000000 Boxes | ||
Compression | 5 |
||||||
Coating | 2 |
||||||
Blister pack | 5 |
||||||
2. Capsule | Encapsulation |
4 | 10,000 Box | 260,000 Box | 75,000,000 Boxes | ||
Blister pack | 3 | ||||||
3. ORS | Blending |
1 | 10,000 Box | 250000 Box | 75000000 Boxes | ||
Filling & Sachetting | 1 | ||||||
4. Dry Powder fill | Blending | 1 |
20000 Bottles | 500000 Bottles | 150000000 Bottles | ||
Filling & Sealing | 1 |
||||||
5. Liquid | Line | 2 | 100000 Bottles | 26000 Bottles | 300000 Bottles | ||
B. Semisolid | Compounding | 1 | 20000 Boxes | 500000 Boxes | 150000000 Box | ||
Filling & sealing | 1 | ||||||
C. Sterile Preparation | |||||||
• SVP | Filling & Sealing | 2 |
10000 Boxes of 10 each | 250000 Boxes | 75000000 Boxes | ||
Packing | 2 | ||||||
• Sterile powder filling | Filling & Sealing | 1 |
20000 Boxes of one each | 500000 Boxes of one each | 150000000 Boxes of one each | ||
Blister pack | 1 | ||||||
3.5 Factory Premises:
1. | Admin Block | 4000 sft. |
2. | Ware House including quarantine and Dispensing | 10,500 sft |
3. | General production building comprising Tablet, Capsule, Liquid, Ointment | 20500 sft |
4. | General production building comprising SVP QC Water treatment plant | 12000 sft |
5. | Cephalosporin production building comprising OSD and injectable | 4000 sft |
6. | Penicillin production building comprising OSD and injectable | 4000 sft |
7. | Utility ground floor comprising | 4000 sft |
8. | Utility 1st floor comprising | 4000 sft |
9. | Laundry | 2000 sft |
Total service floor of above 7 floors of sandwich panel | 40500 sft | |
10. | ETP | 1000 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 Bangladesh | Civil construction | 25,Elephant road dhaka, Bangladesh |
Joyneil Technologies Pvt. Ltd. India | GMP guidelines implementation | 39,Goria, Kolkata , India |
Ethopia , Singapore | HVAC System and Clean Room Technology | Orchard road, Singapore |
Blue star, India | HVAC System | 7 Hair State, Kolkata , India |
Powerman Bangladesh Ltd. | For Electrical Design | 51, Dilkusha, Dhaka |
Reytan, Belgium | For Paneling and Clean Room | ISOCAB Reytan , Belgium |
Alpha lebel | Water System | India |
Ducting | Omni International, Bonani | Banani , Bangladesh |
Piping | Orbit International | 38, 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.
- Plant steam and condensate
- Purified Water
- Water for Injection
- Raw Water
- Soft Water/DM Water
- Cooling Water (Supply and Return)
- Clean Air
- 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-09 | F-SVP-10 | F-SVP-02 | F-SVP-01 | F-SVP-012 | F-SVP-13 | F-SVP-23 |
Room Name | Amp. Wash |
Amp. Filling/ Sealing |
Soln. Prep. Room |
Cont. Prep. Room |
Air Lock | Air Lock | Sterile Cor. |
Class | D | B | C | D | D | B | D |
Area(approx) sq. m | 41.95 | 41.62 | 28.94 | 8.91 | 4.64 | 2.32 | 9.754 |
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 WG | 25 Pa | 45 Pa | 35 Pa | 25 Pa | 25 Pa | 45 Pa | 25 Pa |
Temp (+/- 2 o C) |
22 o C | 22 o C | 22 o C | 22 o C | 22 o C | 22 o C | 22 o C |
Humidity (RH %)(+/- 2%) |
50 | 50 | 50 | 50 | 50 | 50 | 50 |
Air Changes (+/- 20%) |
20 | 120 | 60 | 20 | 10 | 20 | 10 |
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.
The system of Quality Assurance in Ziska Pharmaceuticals Ltd. ensures that:
- 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.
- Adequate arrangements are made for manufacture, supply and use of correct starting and packaging materials
- Adequate controls on starting materials, intermediate products and bulk products and other In- process controls, calibrations and validations are carried out.
- The finished products are correctly processed and checked in accordance with established procedures
- 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.
- 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
- Local Marketing
- Export
- Contract Manufacturing
Annual Turnover : 80 Crore BDT.
Total Manpower in Marketing and Sales: 500.
- 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 Assets | 313,605,325 | 272,836,633 | |||
Property, Plant and Equipment- Carrying Value | 228,985,636 | 199,217,503 | |||
Intangible Assets | 84,619,689 | 73,619,129 | |||
Current Assets | 475,868,982 | 414,006,014 | |||
Inventories | 52,987,654 | 46,099,259 | |||
Spares & Supplies | 29,654,320 | 25,799,258 | |||
Accounts Receivable | 189,828,765 | 165,151,026 | |||
Loans, Advances and Deposits | 158,789,544 | 138,146,903 | |||
Short Term Investment | 37,854,923 | 32,933,783 | |||
Cash and Cash Equivalents | 6,753,776 | 5,875,785 | |||
TOTAL ASSETS | 789,474,307 | 686,842,647 | |||
SHAREHOLDERS' EQUITY AND LIABILITIES | |||||
Shareholders' Equity | 120,000,000 | 104,400,000 | |||
Issued Share Capital | 120,000,000 | 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 441,888 352,416 | 2,488,675 | 2,165,147 | |||
Current Liabilities and Provisions | 158,968,442 | 138,302,545 | |||
Short Term Borrowing | 136,962,883 | 119,157,708 | |||
Long Term Borrowing-Current Maturity | 1,165,416 | 1,013,912 | |||
Creditors and other Payables | 7,789,500 | 6,776,865 | |||
Accrued Expenses | 575,000 | 500,250 | |||
Income Tax Payable | 12,475,643 | 10,853,809 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 789,474,307 | 686,842,647 | |||
Loss Profit Analysis
As at Dec’31 2010 | As at Dec’31 2009 | ||
Net Sales Revenue | 902,180,897 | 784,897,380 | |
Cost of Goods Sold | 559,040,923 | 519,908,058 | |
Gross Profit | 343,139,974 | 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 Operations | 585,170,435 | 490,077,651 | |
Other Income | 25,890,300 | 24,492,224 | |
Finance Cost | (21,567,850) | (20,403,186) | |
Profit before Contribution to WPPF | 589,492,885 | 494,166,689 | |
Contribution to Workers' | |||
Profit Participation/ Welfare Funds | (235,765,800) | (223,034,447) | |
Profit before Tax | 353,727,085 | 271,132,242 | |
Income Tax | (586,385) | (554,720) | |
Profit after Tax | 353,140,700 | 270,577,522 | |
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 Others | 902,180,897 | 784,897,380 | ||
Cash Paid to Suppliers and Employees | (418,673,273) | (364,245,748) | ||
Cash Generated from Operations | 483,507,624 | 420,651,633 | ||
Interest Paid | (217,282) | (189,035) | ||
Income Tax Paid | (586,385) | (510,155) | ||
Net cash Generated from Operating Activities | 484,311,291 | 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 Investment | 4,921,140 | 4,281,392 | ||
Disposal of Property, Plant and Equipment | 1,550,000 | 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 Borrowings | 66,042,235 | 57,456,744 | ||
Net (Decrease) /Increase in Short Term Borrowings | 17,805,175 | 15,490,502 | ||
Net Cash Generated from Financing Activities | 83,847,410 | 72,947,247 | ||
Increase/(Decrease) in Cash and Cash Equivalents | 117,283,517 | 102,036,660 | ||
Cash and Cash Equivalents at Beginning of Period | 178,456,784 | 155,257,402 | ||
Cash and Cash Equivalents at End of Period | 295,740,301 | 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 Goods | 21,005,270 | 18,274,585 | |
Materials | |||
(Including Work in Process and Transit) | 120,567,650 | 104,893,856 | |
Sample & Others | 459,680 | 399,922 | |
142,032,600 | 123,568,362 | ||
Loans, Advances and Deposits | |||
Motor Cycle Loan | 18,880,744 | 17,370,284 | |
Sequrity and Other Deposit | 138,450 | 127,374 | |
Advance for Expense | 1297107 | 1,193,338 | |
Salary Advance | 5,635,972 | 5,185,094 | |
Sundry Party | 787,542 | 724,539 | |
Others | |||
26,739,815 | 24,600,630 | ||
Cash and Cash Equivalents | |||
Cash in Hand , Transit & Bank | 7,360,817 | 6,992,776 | |
7,360,817 | 6,992,776 | ||
Long Term Borrowing | |||
A Non Current Maturity | |||
Project Loan | 98,519,307 | 93,593,342 | |
Obligation under Finance Lease | 20,726,265 | 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 | |||
Materials | 120,567,650 | 112,127,915 | |
Factory Overhead | 418,673,273 | 389,366,144 | |
Depreciation | 19,800,000 | 18,414,000 | |
559,040,923 | 519,908,058 | ||
Administrative Expenses | |||
Salary & Allowances | 14,985,221 | 13,936,256 | |
Fuel, Repairs & Office Maintenance | 2,613,774 | 2,430,810 | |
Travelling & Conveyance | 0 | ||
AGM and Company Secretarial Expenses | 3,549,758 | 3,301,275 | |
Other Expenses | 37,827,816 | 35,179,869 | |
Depreciation | 1,247,824 | 1,160,476 | |
61,513,805 | 57,207,839 | ||
Selling and Distribution Expenses | |||
Salary & Allowances | 10,821,756 | 10,064,233 | |
Travelling & Conveyance | 1,289,412 | 1,199,153 | |
Market Research & New Products | 456,000 | 424,080 | |
Sample, Literature & Promotional Expenses | 1,234,530 | 1,148,113 | |
Delivery Commission | 13,339,679 | 12,405,901 | |
Depreciation | 505,200 | 469,836 | |
Other Expenses | 152,870,079 | 142,169,173 | |
180,516,656 | 167,880,490 |
Financial strength ratios go by many names (liquidity, solvency, financial leverage), but they all point to the same thing.
A 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
= 475,868,982 / 158,968,442
= 2.99
The quick ratio emphasizes coverage assets quickly convertible into cash:
= (475,868,982 – 52,987,654) / 158,968,442
= 2.66
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:
= 189,828,765 / 120,000,000
= 1.58
(Note that current liabilities, such as accounts payable, typically are not included.)
= 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
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:
(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:
= 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 Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040121 | Salary | 813,326 | 1624056 | 810,730.00 |
4040102 | Ta/ Da Allowance | 404,590 | 844077 | 439,487.00 |
4040103 | Brand Loyality | 194,500 | 394,500 | 200,000.00 |
4040104 | Rent/Bill | 31,120 | 61,545 | 30,425.00 |
4040105 | Delivery Cost | 32,938 | 88,607 | 55,669.00 |
4040106 | Booking Cost/Postage Charge | 23,661 | 41,252 | 17,591.00 |
4040107 | DD Cost/ Bank Charge | 3,105 | 4,899 | 1,794.00 |
4040108 | Donation/Gift | 9,600 | 57,400 | 47,800.00 |
4040109 | Conveyance | 5,191 | 10,390 | 5,199.00 |
4040110 | Computer Paper/Ribon | 660 | 990 | 330.00 |
4040111 | Fuel & Tool | 742 | 1,774 | 1,032.00 |
4040112 | Stationary & Photocopy | 6,833 | 7,803 | 970.00 |
4040113 | Entertainment & Confer. Cost | 21,955 | 25,195 | 3,240.00 |
4040114 | Miscelance | 803 | 1,403 | 600.00 |
4040115 | Cash Incentive | 6,500 | 102,000 | 95,500.00 |
4040117 | Sales Commission | 177,074 | 597,941 | 420,867.00 |
4040118 | Product Bonus | 47,330 | 99,490 | 52,160.00 |
4040119 | Postage Charge | 1,205 | 2,400 | 1,195.00 |
4040120 | Photocopy | 565 | 937 | 372.00 |
4040121 | Car Maintinance | 3,730 | 6,870 | 3,140.00 |
4040122 | Hardship Allowance | 6,510 | 11,350 | 4,840.00 |
4040124 | Carring Outward | 10,274 | 29,881 | 19,607.00 |
4040125 | Gold Leaf & Jute | 4,829 | 9,328 | 4,499.00 |
4040127 | Carring Inward | 11,932 | 29,779 | 17,847.00 |
4040123 | Loss & Damage | – | ||
Total | 1,818,973 | 4053867 | 2,234,894.00 | |
|
||||
Chittagong depot |
||||
C/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040203 | Brand Loyality | 234,000 | 473,000 | 239,000.00 |
4040201 | Salary | 742,890 | 1,517,898 | 775,008.00 |
4040202 | Ta/ Da Allowance | 357,199 | 742,054 | 384,855.00 |
4040204 | Rent/Bill | 28,700 | 58,246 | 29,546.00 |
4040205 | Delivery Cost | 91,130 | 137,946 | 46,816.00 |
4040206 | Booking Cost/Postage Charge | 4,795 | 14,315 | 9,520.00 |
4040207 | DD Cost/ Bank Charge | 1,847 | 3,058 | 1,211.00 |
4040208 | Donation/Gift | 46,150 | 64,650 | 18,500.00 |
4040209 | Conveyance | 1,089 | 4,079 | 2,990.00 |
4040210 | Computer Paper/Ribon | 850 | 1,800 | 950.00 |
4040211 | Fuel & Lubricants | 1,800 | 1,800 | – |
4040212 | Stationary & Photocopy | 7,271 | 7,950 | 679.00 |
4040213 | Entertainment & Confer. Cost | 21,210 | 25,720 | 4,510.00 |
4040214 | Miscelance | 20,075 | 27,940 | 7,865.00 |
4040215 | Cash Incentive | 13,000 | 19,500 | 6,500.00 |
4040217 | Sales Commission | 79,417 | 218,965 | 139,548.00 |
4040218 | Product Bonus | 20,326 | 44,647 | 24,321.00 |
4040219 | Postage Chargre | 1,090 | 1,880 | 790.00 |
4040220 | Photocopy | 301 | 426 | 125.00 |
4040221 | Car Maintinance | 10,300 | 10,300 | – |
4040222 | Hardship Allowance | 642 | 1,212 | 570.00 |
4040224 | Carring Outward | 20,724 | 22,147 | 1,423.00 |
4040225 | Gold Leaf & Jute | 4,213 | 8,917 | 4,704.00 |
4040226 | Office Maint. | 2720 | 2,720.00 | |
4040227 | Carring Inward | 6,687 | 21,227 | 14,540.00 |
4040223 | Loss & Damage | – | ||
Total | 1,715,706 | 3,432,397 | 1,716,691.00 | |
Faridpur depot |
||||
C/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040303 | Brand Loyality | 223,500 | 491,500 | 268,000.00 |
4040301 | Salary | 942,426 | 1,931,682 | 989,256.00 |
4040302 | Ta/ Da Allowance | 480,987 | 933,104 | 452,117.00 |
4040304 | Rent/Bill | 25,214 | 50,340 | 25,126.00 |
4040305 | Delivery Cost | 61,240 | 130,132 | 68,892.00 |
4040306 | Booking Cost/Postage Charge | 4,925 | 8,940 | 4,015.00 |
4040307 | DD Cost/ Bank Charge | 1,599 | 3,633 | 2,034.00 |
4040308 | Donation/Gift | 81,460 | 81,460 | – |
4040309 | Conveyance | 3,271 | 10,159 | 6,888.00 |
4040310 | Computer Paper/Ribon | 1,060 | 2,297 | 1,237.00 |
4040311 | Fuel & Lubricants | 400 | 1,250 | 850.00 |
4040312 | Stationary & Photocopy | 9,589 | 10,430 | 841.00 |
4040313 | Entertainment & Confer. Cost | 27,380 | 125,282 | 97,902.00 |
4040314 | Miscelance | 4,595 | 8,601 | 4,006.00 |
4040315 | Cash Incentive | 19,000 | 102,000 | 83,000.00 |
4040317 | Sales Commission | 160,650 | 289,787 | 129,137.00 |
4040318 | Product Bonus | 32,172 | 52,093 | 19,921.00 |
4040319 | Postage Charge | 285 | 285.00 | |
4040321 | Car Maint. | 290 | 2,770 | 2,480.00 |
4040322 | Hardship Allowance | 450 | 1,750 | 1,300.00 |
4040324 | Carring Outward | 47,422 | 84,461 | 37,039.00 |
4040325 | Gold Leaf & Jute | 4,681 | 9,554 | 4,873.00 |
4040326 | Office Maint. | 500 | 500.00 | |
4040327 | Carring Inward | 17,245 | 31,332 | 14,087.00 |
4040320 | Photocopy | 41 | (41.00) | |
4040323 | Loss & Damage | 188 | 188.00 | |
Total | 2,149,597 | 4,363,530 | 2,213,933.00 | |
Sylhet Depot |
||||
C/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040403 | Brand Loyality | 206,000 | 417,000 | 211,000.00 |
4040401 | Salary | 470,683 | 986,227 | 515,544.00 |
4040402 | Ta/ Da Allowance | 205,458 | 390,904 | 185,446.00 |
4040404 | Rent/Bill | 30,470 | 60,320 | 29,850.00 |
4040405 | Delivery Cost | 28,078 | 62,496 | 34,418.00 |
4040406 | Booking Cost/Postage Charge | 22,974 | 50,184 | 27,210.00 |
4040407 | DD Cost/ Bank Charge | 259 | 1,261 | 1,002.00 |
4040408 | Donation/Gift | 8,495 | 77,442 | 68,947.00 |
4040409 | Conveyance | 3,038 | 4,694 | 1,656.00 |
4040410 | Computer Paper/Ribon | 980 | 1,800 | 820.00 |
4040411 | Fuel & Lubricants | 45 | 45 | – |
4040412 | Stationary & Photocopy | 576 | 811 | 235.00 |
4040413 | Entertainment & Confer. Cost | 23,672 | 26,512 | 2,840.00 |
4040414 | Miscelance | 1,000 | 1,500 | 500.00 |
4040417 | Sales Commission | 29,342 | 68,400 | 39,058.00 |
4040418 | Product Bonus | 8,949 | 26,767 | 17,818.00 |
4040415 | Cash Incentive | 2,000 | 2,000.00 | |
4040419 | Postage Charge | 244 | 568 | 324.00 |
4040420 | Photocopy | 110 | 290 | 180.00 |
4040421 | Car Maintinance | 5,000 | 6,900 | 1,900.00 |
4040424 | Carring Outward | 3,724 | 9,097 | 5,373.00 |
4040425 | Gold Leaf & Jute | 2,996 | 2,996 | – |
4040427 | Carring Inward | 9,698 | (9,698.00) | |
4040423 | Loss & Damage | – | ||
4040426 | Office Maint. | 353 | 353.00 | |
4040427 | Carring Inward | 30,862 | 30,862.00 | |
Total | 1,061,791 | 2,229,429 | 1,167,638.00 | |
Dhaka Depot |
||||
C/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040503 | Brand Loyality | 308,300 | 632,500 | 324,200.00 |
4040501 | Salary | 1,360,318 | 2,743,272 | 1,382,954.00 |
4040502 | Ta/ Da Allowance | 665,923 | 1,344,638 | 678,715.00 |
4040504 | Rent/Bill | 66,070 | 166,683 | 100,613.00 |
4040505 | Delivery Cost | 113,090 | 226,552 | 113,462.00 |
4040506 | Booking Cost | 370 | 370.00 | |
4040507 | Bank/DD Charge | 418 | 1,113 | 695.00 |
4040508 | Donation/Gift | 247,052 | 362,842 | 115,790.00 |
4040509 | Conveyance | 14,285 | 24,330 | 10,045.00 |
4040510 | Computer Paper/Ribon | 7,995 | 11,395 | 3,400.00 |
4040511 | Fuel & Lubricants | – | ||
4040512 | Photocopy | 148 | 163 | 15.00 |
4040513 | Postage Charge | – | ||
4040514 | Stationary | 2,125 | 2,275 | 150.00 |
4040415 | Conference Entertainment | 62,212 | 67,402 | 5,190.00 |
4040517 | Cash Incentive | 17,500 | 23,974 | 6,474.00 |
4040518 | Sales Commission | 138,595 | 688,023 | 549,428.00 |
4040519 | Product Bonus | 48,373 | 80,063 | 31,690.00 |
4040521 | Car Maintinance | 2,318 | 4,118 | 1,800.00 |
4040522 | Hardship Allowance | 5,124 | 12,794 | 7,670.00 |
4040523 | Loss & Damage | 41,594 | 41,594 | – |
4040524 | Carring Outward | 40,024 | 67,043 | 27,019.00 |
4040525 | Gold Leaf & Jute | 22,135 | 23,335 | 1,200.00 |
4040527 | Repair & Maint. | 7,048 | 7,549 | 501.00 |
4040529 | Miscelance | 2,200 | 2,200 | – |
Total | 3,172,847 | 6,534,228 | 3,361,381.00 | |
Barisal Depot |
||||
C/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040603 | Brand Loyality | 159,160 | 332,760 | 173,600.00 |
4040601 | Salary | 440,241 | 687,075 | 246,834.00 |
4040602 | Ta/ Da Allowance | 194,481 | 407,507 | 213,026.00 |
4040604 | Rent/Bill | 20,136 | 30,240 | 10,104.00 |
4040605 | Delivery Cost | 1,775 | 60,259 | 58,484.00 |
4040606 | Booking Cost | 28,446 | 54,519 | 26,073.00 |
4040607 | Bank Charge/DD Cost | 525 | 1,902 | 1,377.00 |
4040608 | Donation/Gift | 7,900 | 18,105 | 10,205.00 |
4040609 | Conveyance | 1,295 | 3,805 | 2,510.00 |
4040610 | Computer Paper/Ribon | 1,082 | 1,920 | 838.00 |
4040612 | Stationary | 4,520 | 4,520 | – |
4040613 | Entertainment & Conference Cost | 10,746 | 14,087 | 3,341.00 |
4040614 | Misc Exps | 9,063 | 9,648 | 585.00 |
4040615 | Cash Incentive | 13,000 | 27,500 | 14,500.00 |
4040617 | Sales Commission | 28,769 | 79,647 | 50,878.00 |
4040618 | Product Bonus | 20,592 | 20,592.00 | |
4040619 | Postage Charge | 720 | 1,120 | 400.00 |
4040620 | Photocopy | 190 | 340 | 150.00 |
4040622 | Hardship Allowance | 2,340 | 2,340.00 | |
4040624 | Carring Outward | 2,508 | 6,478 | 3,970.00 |
4040625 | Gold Leaf & Jute | 4,239 | 8,045 | 3,806.00 |
4040623 | Loss & Damage | – | ||
Total | 928,796 | 1,772,409 | 843,613.00 | |
|
||||
Comilla Depot |
||||
A/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040701 | Salary | 867,139 | 1,102,169 | 235,030.00 |
4040702 | Ta/ Da Allowance | 412,220 | 786,217 | 373,997.00 |
4040703 | Brand Loyality | 261,300 | 515,100 | 253,800.00 |
4040704 | Rent/Bill | 22,134 | 42,964 | 20,830.00 |
4040705 | Delivery Cost | 109,272 | 195,538 | 86,266.00 |
4040706 | Booking Cost | 74,804 | 146,053 | 71,249.00 |
4040707 | DD Cost/ Bank Charge | 908 | 1,450 | 542.00 |
4040708 | Donation/Gift | 28,675 | 58,060 | 29,385.00 |
4040709 | Conveyance | 4,884 | 7,527 | 2,643.00 |
4040710 | Computer Paper/Ribon | 5,740 | 15,970 | 10,230.00 |
4040711 | Fuel/Tools | 820 | 1,632 | 812.00 |
4040712 | Office Stationary | 901 | 1,241 | 340.00 |
4040713 | Entertainment | 42,115 | 47,592 | 5,477.00 |
4040714 | Miscelance | 355 | 1,690 | 1,335.00 |
4040715 | Cash Incentive | 7,500 | 7,500.00 | |
4040717 | Sales Commission | 209,978 | 392,148 | 182,170.00 |
4040718 | Product Bonus | 20,770 | 36,645 | 15,875.00 |
4040719 | Postage Charge | 995 | 2,285 | (18,485.00) |
4040720 | Photocopy | 322 | 619 | (376.00) |
4040721 | Car Maintinance | 2,800 | 13,450 | 13,128.00 |
4040722 | Hardship Allowance | 1,800 | 2,520 | (280.00) |
4040724 | Carring Outward | 6,765 | 19,454 | 17,654.00 |
4040725 | Gold Leaf & Jute | 3,100 | 7,550 | 785.00 |
4040326 | Office Maint. | 325 | 325.00 | |
4040727 | Carring Inward | 9,236 | 17,546 | 8,310.00 |
Total | 2,087,033 | 3,423,245 | 1,336,212.00 | |
Mymensingh Depot | ||||
A/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040801 | Salary | 499,038 | 1,035,264 | 536,226.00 |
4040802 | Ta/ Da Allowance | 225,545 | 447,323 | 221,778.00 |
4040803 | Brand Loyality | 163,000 | 317,000 | 154,000.00 |
4040804 | Rent/Bill | 20,242 | 41,914 | 21,672.00 |
4040805 | Delivery Cost | 30,797 | 57,002 | 26,205.00 |
4040806 | Booking Cost | 37,080 | 81,800 | 44,720.00 |
4040807 | DD Cost/ Bank Charge | 338 | 1,699 | 1,361.00 |
4040808 | Donation/Gift | 13,985 | 45,185 | 31,200.00 |
4040809 | Conveyance | 1,843 | 2,858 | 1,015.00 |
4040810 | Computer Paper | 820 | 820.00 | |
4040811 | Fuel | 309 | 309.00 | |
4040812 | Office Stationary | 6,135 | 7,061 | 926.00 |
4040813 | Entertainment | 15,043 | 17,193 | 2,150.00 |
4040814 | Miscelance | 2,314 | 3,128 | 814.00 |
4040815 | Cash Incentive | 2,000 | 2,000 | – |
4040817 | Sales Commission | 36,064 | 191,957 | 155,893.00 |
4040818 | Product Bonus | 9,435 | 17,207 | 7,772.00 |
4040819 | Postage Charge | 555 | 965 | 410.00 |
4040820 | Photocopy | 160 | 254 | 94.00 |
4040821 | Car Maintinance | 4,645 | 8,725 | 4,080.00 |
4040822 | Hardship Allowance | 50 | 50 | – |
4040824 | Carring Outward | 350 | 8,822 | 8,472.00 |
4040825 | Gold Leaf & Jute | 850 | 850 | – |
4040827 | Carring Inward | 8,352 | 14,608 | 6,256.00 |
Total | 1,077,821 | 2,303,994 | 1,226,173.00 | |
Rangpur Depot |
||||
C/C Code | Name of the Expenditure | Exp | Exp | Net Exp |
as on 31 Jan2011 | as on 28 Feb 2011 | For the month of Feb 2011 | ||
4040901 | Salary | 745,621 | 1,525,364 | 779,743.00 |
4040902 | Ta/ Da Allowance | 395,387 | 801,752 | 406,365.00 |
4040903 | Brand Loyality | 272,500 | 566,000 | 293,500.00 |
4040904 | Rent/Bill | 24,017 | 33,409 | 9,392.00 |
4040905 | Delivery Cost | 36,735 | 97,093 | 60,358.00 |
4040906 | Booking Cost | 33,053 | 79,225 | 46,172.00 |
4040907 | DD Cost/ Bank Charge | 6,628 | 13,322 | 6,694.00 |
4040908 | Donation/Gift | 44,510 | 57,410 | 12,900.00 |
4040909 | Conveyance | 13,353 | 24,038 | 10,685.00 |
4040910 | Computer Paper/Ribon | 1,620 | 3,225 | 1,605.00 |
4040911 | Fuel/Tools | 398 | 398 | – |
4040912 | Office Stationary | 4,182 | 7,430 | 3,248.00 |
4040913 | Entertainment | 22,805 | 27,385 | 4,580.00 |
4040914 | Miscelance | 508 | 1,429 | 921.00 |
4040915 | Cash Incentive | 129,000 | 129,000.00 | |
4040917 | Sales Commission | 86,694 | 232,646 | 145,952.00 |
4040918 | Product Bonus | 14,860 | 30,245 | 15,385.00 |
4040919 | Postage Charge | 1,054 | 2,080 | 1,026.00 |
4040920 | Photocopy | 1,665 | 3,456 | 1,791.00 |
4040921 | Car Maintinance | 1,091 | 3,349 | 2,258.00 |
4040922 | Hardship Allowance | 570 | 2,370 | 1,800.00 |
4040924 | Carring Outward | 8,529 | 19,556 | 11,027.00 |
4040925 | Gold Leaf & Jute | 4,550 | 9,575 | 5,025.00 |
4040926 | Office Maint. | 1,020 | (1,020.00) | |
4040927 | Carring 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 |
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:
- http:// www.ziskapharma.com
- http:// www.dummies.com
- http:// www.ambest.com
- http:// www.financialstrength.com