spmc annual report

ANNUAL REPORT - 2008

STATE PHARMACEUTICALS MANUFACTURINGCORPORATION OF SRI LANKA

96 High Quality Generic pahamaceuticals Manufacturer To The Nation

STATE PHARMACEUTICALS MANUFACTURING CORPORATIONANNUAL REPORT 2008

97


High Quality Generic pahamaceuticals Manufacturer To The Nation

CONTENTS

Our Vision & Mission 98•

Corporate Information 99•

Establishment of SPMC and Key Objectives 100•

Chairman/ Managing Director’s Review 101•

Directors 104•

Director’s Report 106•

Report of the Audit Committee 108•

Corporate Governance Report 110•

Our Product Mix 112•

Statement of Director’s Responsibilities 113•

Balance Sheet 114•

Income Statement 115•

Cash Flow Statement 116•

Statement of Changes in Equity 117•

CorporateInformation&SignificantAccountingPolicies 118•

Notes to the Accounts 123•

Auditor General’s Report 131•

Chairman/ Managing Director’s Comments on Auditor General’s Report 137•

Financial Highlights in the past 10 years 139•



Our Vision

To be an internationally recognized, model manufacturing and marketing organization for

pharmaceutical products in South Asia.

Our Mission

To manufacture safe, effective and affordable medicinal drugs of superior quality

up to international standards to the local and international markets.

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Corporate Information

NAME OF THE ORGANIZATION BANKS

State Pharmaceuticals Manufacturing Corporation of Sri Bank of Ceylon

Lanka Peoples Bank

National Savings Bank

LEGAL FORM

Established in 1987 under the State Industrial MANAGEMENT COMMITTEECorporations Act No. 49 of 1957 D. P. Senadheera - General Manager K. D. A. Kuruppu - Quality Control Mgr.DATE OF INCORPORATION M. D. A. R. Gunaratne - Maintenance Mgr.June 04, 1987 M. D. B. Coorey - Mgr. Planning & Procurement

REGISTERED OFFICE H. K. H. H. Perera - Management Accountant

11, Sir John Kotelawala Mawatha, C. A. Munisinghe - Mgr. Formulation cum

Kandawala Estate, Research & Development

Ratmalana, S.W.Jayasundara - Mgr. Production

Sri Lanka. A.S.W.Vithana - Marketing Manager

BOARD OF DIRECTORS S. Jayatillake - Asst. Maintenance Mgr. M. A. P. Hemachandra - Chairman / A. G. De S. Athuraliya - Factory Accountant Managing Director

Prof. Gita Fernando - Director V. P. Muthukuda - Asst. Mgr. Production

(up to 30.11.2008) S.P.Jayaweera - Asst. Mgr. Production

Prof. R.L. Jayakody - Director V. J. Bandarawatta - Internal Auditor

(from 30.11.2008) P.S.Weerasinghe - Asst. Mgr. Quality Control

Dr. J. M. W. Jayasundera Bandara - Director H.M.L.S.Dharshana - Asst. Mgr. Planning & Procu.

R.S.Ariyapperuma - Director R.Gunarathne - AdministrativeOfficer

P. A. U. Ranjith Perera - Director H. M. Rathnayaka - Asst. Mgr. Quality Control

M.R.R. Abayawickrema - Director

Ranjith Maligaspe - Director

AUDIT COMMITTEE M.R.R. Abayawickrema - Chairperson

AUDITOR P. A. U. Ranjith Perera - Member

Auditor General, Torrington Square, Colombo 07. R. S. Ariyapperuma - Member



Establishment of SPMC & Key Objectives

SPMC was established in 1987 under the Industrial Corporation Act No. 49 of 1957.

In 2008, State Pharmaceuticals Manufacturing Corporation completed 21 years of commercial production of essential Medicinal Drugs for the Health care of the Sri Lanka population. SPMC product range consists of 55 products of tablets, capsules and oral suspension. SPMC is the only State Sector Corporation engaged in manufacturing pharmaceuticals in Sri Lanka.

The main functions are,

(1) Manufacturing, processing, stocking, packing and re packing of drugs.

(2) Provision of technical assistance for the manufacture and processing of drugs.

(3) Pharmacological and pharmaceutical research and the standardization of drugs and

(4) Marketing of drugs, so produced.

Allproductsreleasedtothemarketmeetwithourin-housespecifications(SPMC)inadditiontotheBritishPharmacope-ias (BP) / United State Pharmacopeias (USP) requirements.

Implementation of GMP (Good Manufacturing Practices) regulations and procedures are regularly monitored through internal quality auditing and factory inspection.

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Chairman/Managing Director’s Review

On behalf of the Board of Directors, it is a great pleasure for me to present for the consecutive fourth year the Annual Report andAuditedfinancial statements comprising theBalance Sheet, Income Statement, Cash Flow Statement and the Auditor’s Report for the year ended 31st December 2008.

SPMC was established in 1987 under the Industrial Corporation Act No. 49 of 1957. In 2008, State Pharmaceuticals Manufacturing Corporation (SPMC) completed 21 years of commercial production of essential Medicinal Drugs for the Health care of the Sri Lanka population. SPMC product range consists of 56 products of tablets, capsules and oral suspension. SPMC is the only State Sector Corporation engaged in manufacturing pharmaceuticals in Sri Lanka.

All products released to the market meet with our in- house specifications (SPMC) in addition to the BritishPharmacopeias (BP) / United State Pharmacopeias (USP) requirements. Implementation of GMP (Good Manufacturing Practices) regulations and procedures are regularly monitored through internal quality auditing and factory inspection. The commitment has been made to manufacture quality, effective and safe medicinal drugs at affordable prices.

The Pharmaceuticals manufacturing facility of the SPMC is equipped with modern Japanese & German machines. The manufacturing facility has an ultra-clean atmosphere and it closely adheres to the requirements of Good Manufacturing Practices (GMP) as laid down by the World Health Organization (WHO). It is very heartening to note that the SPMC products are well accepted and recognized by doctors, pharmacists and other professionals in the health sector. Our reputation as a manufacturer of quality pharmaceutical products is the most effective force behind our success.

• PERFORMANCE

“Mahinda Chinthana” manifesto in 2005 as well as 2007 & 2008 Budget speeches of His Excellency the President Mr. Mahinda Rajapaksha stated that strengthening the SPMC is one of the important activities in the Health Sector. on that score Hon. Minister of Healthcare & Nutrition Mr. Nimal Siripala De Silva has also high-lighted the use of Generic drugs as a major component in National Drug Policy.

Tofulfilltheabovetargets,Hon.Ministermanagedtogetthe Cabinet of Ministers approval to supply SPMC products directly to Medical Supplies Division (MSD) and we were able to supply Rs.536 Mn. worth of tablets / capsules during 2008.

Production Output

Having introduced the shift operation, total production out put has been increased to 1,032 Mn. tablets/capsules.

It is the highest production out put in history of the Corporation

In addition SPMC manufactured 8,590 bottles of Oral Suspensions.

Turn Over

Total sales income in 2008 has been increased to Rs.890 Mn. compared to Rs. 599 Mn. in 2007. This was an increase of 48%.

It is the highest turn over in history of the Corporation

About 60% of the sales value amounting to Rs.265 Mn. was generated by single source of supply to MSD of the Health Ministry.

In addition to this main channel, we have sales through our own Distributors and State Pharmaceuticals Corporation (SPC) and it is 30% and 8% of the sales value respectively.

Apart from these three sources, we exported our Pharmaceuticals to Fiji Island and Papua New Guinea and it was about 2 % of the sales value.

Operating Profit

TheOperatingprofitrecordedduringtheyear2008isRs.63 Mn.



It is an increase of 70% compared to previous year.

Net Profit

NetprofitbeforetaxationduringtheyearisRs.120Mn.

It is the highest Net Profit recorded in history of theCorporation.

However,theprofitafterTaxationisRs.78Mn.

It is a pleasure to note that the Corporation has been able to carry on its activities without being a burden to the General Treasury.

In fact the SPMC has paid Rs.10 Mn. as a contribution to the General Treasury during the year fulfilling ourresponsibility as a public corporate body of the Mahinda Rajapaksha Government in spite of the fact that we could have utilized it for our expansion work.

A provision of Rs.42 Mn. has also been made as Income Tax for 2008

• DEVELOPMENTWORK

Factory Improvement

During the year new Automated Labeling & Gumming Machine was in full operation and managed to reduce both labour cost and the packing time.

Two shift operations also continued and helped to minimize the overhead cost and SPMC managed to dominate its products in the open market.

Construction of new building previously designed was delayed due to transfer of leased land by State Pharmaceuticals Corporation (SPC).

With the increase in market demand and possibility of supplying more items to MSD, existing capacity is not sufficientforthepresentmarketrequirement.Therefore,wewerecompelledtofinalizetheplansbyutilizingtheexisting premises to construct buildings for the expansion of production areas, warehouse facilities as well as administration purposes as an urgent solution.

Introduction of New Products

After several years of research, SPMC managed to introduce one (1) new item to the market in 2008. Hence, the total product manufactured and marketed by SPMC is becoming 55.

• HUMANRESOURCES DEVELOPMENT&WELFARE

Total employment as at 31.12.2008 is 195 including 18 Trainees who are engaged on the job training under the guidance of Senior Management of the SPMC for efficientandsmoothoperationof twoshifts.Other thanthis, employees are trained through several programmes conducted by other Institutions. Further Corporation has providedfinancialassistancefortheemployeeswhoaredoing higher education on their job related subjects.

Essential welfare facilities entertained by all employees were continued. The employees were also provided with facilities to take part the Annual Trip, Sinhala New Year Celebration Festival , Sports Day.

• STRATEGYANDPROSPECTS

Our main focus is to supply pharmaceuticals required by the MSD while supplying to the SPC and private market. During the year 2009, we have Cabinet of Ministers approval to supply 20 items to MSD without normal tender procedures which help to strengthen our main focus.

In addition to that we have already planed to extend the building capacity for production area, stores premises and administration purposes. This will facilitate for having a highly equipped Laboratory to ensure supply of high quality drugs at affordable price to the poor people in Sri Lanka. Simultaneously we will be applying for ISO 9000 after completion of the stores building.

It also facilitates for us to increase the production output, sales revenue, products range and create new employment opportunities and technical know how.

• ACKNOWLEDGEMENT

On behalf of the Board of Directors, I wish to thank His Excellency the President Mr. Mahinda Rajapaksha for the inclusion of the proposal for strengthening the SPMC in his presidential election manifesto “Mahinda Chinthana” and 2007 & 2008 Budget speeches and the Hon. Minister of Healthcare & Nutrition Mr. Nimal Siripala De Silva for his support and guidance. We also value the guidance provided by the Secretary of the Ministry of Healthcare & NutritionDr.AthulaKahandaliyanageandotherofficialsof the Health Ministry.

Wealsoappreciatethecontributionmadebytheofficialsof the various Departments of General Treasury.

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It is a pleasure to note with gratitude that the excellent relationship persisted between our own net work of Distributors and important customers of ours, State Pharmaceuticals Corporation (SPC) and the Medical Supplies Division, contributed enormously to the success of our activities.

The commitment of the Managers, Executive Staff and all level of employees of the SPMC in achieving positive results during the year 2008 must be appreciated.

Finally, I must thank the Board of Directors for their valuable contribution and guidance in steering corporation towards success.

M.A.P.HemachandraChairman / Managing DirectorState Pharmaceuticals Manufacturing Corporation of Sri Lanka27th February 2009



Directors M A P Hemachandra

Chairman / Managing Director

Mr M A P Hemachandra is a Chartered Engineer by profession.

He holds membership in the Institution of Production Engineers (M.I.Prod.E) – London and Member of the Institution of Electrical Engineers (MIEE) – London. He is a Fellow of the Institute of Engineering Diplomates of Sri Lanka FIED (SL).

He is an Ex Chairman of B C C Lanka Limited and Ex Chairman & Managing Director of Colombo Sack Makers Limited. He has over 40 years experience (local and abroad) in Mechanical Engineering, Management and Trading.

Professor Mrs Gita FernandoDirector(up to 30.11.2008)

Professor Gita Fernando is the Founder Professor and the Head of the Department of Pharmacology, Faculty of Medical Sciences, University of Sri Jayawardenapura.

She holds M B B S, FRCP (London) and FCCP.

At present she serves as the Coordinator of the B. Pharm Programme and as the Editor of the ‘Sri Lanka Prescriber’.

She also serves as the Secretary of the Drug Evaluation Sub Committee, Member of the Cosmetic Devices & Drugs Technical Advisory Committee and a Member of the Advertising Sub Committee.

She has already served as a member of the Board of Directors of the State Pharmaceuticals Manufacturing Corporation (SPMC) and the State Pharmaceuticals Corporat

Professor R L Jayakody Director(from 30.11.2008)

Professor R L Jayakody is the Professor of Pharmacology, Faculty of Medicine, University of Colombo.

He holds MA, M B B S, M R C P and phD.

He also serves as the member of the Drug Evaluation Sub Committee, Member of the Cosmetic Devices & Drugs Technical Advisory Committee, Member of the Editorial Board of ‘Sri Lanka Prescriber’ and Member of the Advertising Sub Committee.

He has edited ‘Sri Lanka Hospitals Formulary - 1994’.

Dr.JMWJayasunderaBandara Director(up to 30.11.2008)

Dr. J M W Jayasundera Bandara is a Dental Surgeon by profession and presently holding the post of Acting Deputy Director General (Dental Services ).

HeobtainedhisfirstdegreeBachelor of Dental Surgery in 1981. Being a Dental Surgeon, he obtained his Master Degree in 1992.

He has held the post of Principal, School for Dental Therapists, Maharagama, Director, General Hospital, Ratnapura, before he become the Director, Laboratory services in the Ministry of Health in 1998. He has served in the capacity of Director, Medical Supplies Division

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R S Ariyapperuma Director

Mr R S Ariyapperuma is an Attorney at Law by profession.

He graduated from the University of Peradeniya with a Bachelor of Arts degree in 1977.

He held the post of LegalOfficerDehiwalaMt. Lavinia Municipal Council 1998 – 2000. He also has served as a member of the Internal Inquiry Board of Ceylon Petroleum Corporation. Mr Ariyapperuma handles cases on behalf of Insurance Corporation and Bank of Ceylon.

Mr Ariyapperuma joined the Sri Lanka Navy Volunteer Force in 1985 and continues to serve as a Commander.

P A Upali Ranjith PereraDirector

Mr P A U Perera is a qualifiedpharmacistandobtained the Pharmacist CertificateandDiplomain Pharmacy from The Faculty of Medicine Colombo in 1981 and 1991 respectively.

Mr Perera joined the Government Service in 1982 and held Posts of Chief Pharmacist and Chief Divisional Pharmacist in several Government Hospitals up to 2002.

From 1998 to 2001 he has served as a member of the Board of Directors of the State Pharmaceuticals Corporation (SPC).

He has participated at several overseas workshops and seminars on Drug Regulations and Pharmacy Management, representing Sri Lanka.

Since 1995 he has wide experience in Pharmaceuticals in the private sector.

M.Rukmal R AbayawickramaDirector

Mrs. M R R Abeywickrama is currently attached to the Department of Fiscal Policy of the Ministry of Finance and Planning in the Capacity of a Deputy Director.

She joined the Sri Lanka Planning Service in 1994 and worked in the public service to date and held the post of Assistant Director in Health Planning in the Department of National Planning of the Ministry of Finance & Planning since 1994 – 2004.

She holds MSc in Health Economics and Health Policy (UK), Postgraduate Diploma in Economic Development (Colombo), LLB(OUSL) and BCom(Hon)(Colombo).

Since 1994, she has accumulated extensive experience in health financingandplanninginthe General Treasury.

Mr. Ranjith Maligaspe Director

Mr. Ranjith Maligaspe is currently the Chairman of State Pharmaceuticals Corporation of Sri Lanka.

He holds MBA from Leeds University and Diploma in Marketing (Sri Lanka).

He had held the post of Secretary to the Ministry of Healthcare & Nutrition, Secretary to the Ministry of Shipping & Ports, Additional Secretary to the Ministry of Trade & Commerce and the Director General of the Tea Board.



Directors ReportThe Directors have pleasure in forwarding their Report and Audited Accounts for the year ended 31st December 2008. The Accounts are set out on pages 114 - 130.

• PRINCIPALACTIVITIES

The principal activities of the Corporation are,

• themanufacture,processing,stocking,packing&re-packingofdrugs

• theprovisionoftechnicalassistanceforthemanufactureandprocessingofdrugs.

• Pharmacological&Pharmaceuticalresearch&thestandardizationofdrugs;and

• themarketingofdrugssoproduced.

TherewerenosignificantchangesinthenatureoftheactivitiesoftheCorporationduringtheyear.

• REVIEWOFBUSINESS

The state of affairs of the Corporation at 31st December 2008 is set out in the balance sheet on page 114.

AnassessmentofthecorporationduringthefinancialyearisgivenintheChairman’sReviewonpages101to103.

• TURNOVER&RESULTS

The Turnover, results for the year and the changes in the equity are set out in the income statement on page 115 and the statement of changes in equity on pages 114 respectively.

• FUTUREDEVELOPMENT

Future developments in business is given in the Chairman’s Review on pages 101 to 103.

• DONATIONS

During the year, Rs.10 million donation has been made by the Corporation to the Health Development Fund.

• PROPERTY,PLANT&EQUIPMENT

Themovementsinproperty,plant&equipmentduringtheyeararesetoutinNote1tothefinancialstatementon page 123.

• DIVIDEND/CONTRIBUTION

The Directors recommended and made a payment of Rs.10 Million by way of contribution to the Consolidated Fund of the General Treasury.

• RESERVES

Total Reserves of the Corporation and their composition have been given in the statement of changes in equity onpage117ofthefinancialstatement.

• DIRECTORS

The Board consists of seven Directors, whom are appointed by the Minister of Healthcare and Nutrition. One of the Directors is the Finance Ministry representative and the other is representing Ministry of Healthcare and Nutrition.

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Board Members

During the period, the Board of Directors had held twelve meeting. The Chairman has also been appointed as Managing Director. The Chairman and the Board of Directors take the responsibility for the affairs of the Corporation for the related period.

M. A. P. Hemachandra - Chairman / Managing Director

Prof. Gita Fernando - Director (up to 30.11.2008)

Prof. R. L. Jayakody - Director (from 30.11.2008)

Dr. J. M. W. Jayasundara Bandara - Director - Health Ministry Representative (up to 30.11.2008)

R .S .Ariyapperuma - Director

P. A. Upali Ranjith Perera - Director

M. R. R. Abaywickrama - Director - Finance Ministry Representative

Ranjith Maligaspe - Director

• DIRECTOR’SINTERESTINCONTRACTS

Directors’ interests in contracts of the Corporation are disclosed in Note 3.2.5. to the Financial Statements on page 120.

• ACCOUNTINGPOLICIES

The principal accounting policies of the Corporation are set out on pages 118 to 122.

• ENVIRONMENTALPROTECTION

It is the responsibility of the corporation to operate in a manner that will not have a detrimental effect on the environmentandtoprovideproductsofthehighestqualitythathaveabeneficialeffectforourcustomersandthe communities within which we operate.

• STATUTORYPAYMENTS

All statutory payments to the government and the employees have been made at the balance sheet date.

• EVENTSAFTERBALANCESHEETDATE

No events have occurred since the balance sheet date, which would require adjustments to, or disclosure in, the financialstatements.

• GOINGCONCERN

TheFinancialStatementsarepreparedbasedonthegoingconcernconcept.TheBoardofDirectorsaresatisfiedthat the Corporation has adequate resources to continue its operations in the foreseeable future.

• APPOINTMENTOFAUDITORS

In terms of the provision of Finance Act 1971, the Auditor General is the Auditor of the Corporation and had carried out his annual audit of the Financial activities of the Corporation for the year ended 31st December 2008.

M. A. P. Hemachandra

Chairman/Managing Director



REPORT OF THE AUDIT COMMITTEE

The Audit Committee is constituted in accordance with the provisions of the Public Finance Circular No. PF/PE 3 of 19.11.1999, Public Finance Circular No. PF/PE 10 of 30.10.2000, Public Enterprises Guidelines for Good Governance of June 2003 and Public Enterprise Circular No. PED 31 of 01.07.2005.

The Audit Committee comprises three Non – Executive Directors of the Corporation and chaired by the Treasury Representative. The Internal Auditor functions as the Secretary and Convener to the Committee.

As per the above circulars and guide lines, Audit Committee is empowered to determine the scope of the Internal Audit Department & review annual audit plan, review Auditor General’s Management letter, consider contents of Internal Audit reports, examine the adequacy and effectiveness of internal control systems, review the statutory accounts and published financial statements, assess compliance with regulatory requirements, review performance at regular intervals and to review implementation of recommendations of the Committee on Public Enterprises (COPE) of the Parliament.

During the financial year 2008, five Audit Committee meetings were held, together with the other members. Representative from Auditor General’s Department and Representative of Chief Internal Auditor of Ministry of Health & Nutrition also participated as observers.

In the year 2008, the Committee

• Reviewed and approved the Internal Audit Programme - 2008

• Reviewed and made recommendations for presentation of Financial Statements 2008.

• Due attention was paid for issuing of Annual Report 2007

• Considered the Internal Audit reports, covering the nature of the issues, responses by the Departmental Heads and corrective actions that were taken by Management to overcome the noted deficiencies.

• Reviewed & made suitable recommendations about several internal control systems such as interdepartmental transactions in order to ensure the smooth operations of the Corporation.

• Reviewed the procurement and Tender procedure.

• Reviewed the cost computation of products manufacturing.

• Reviewed the follow up actions taken by the respective Manager / Officer on the recommendations of the Committee.

• Considered the matters seeking recommendations of the Audit Committee, forwarded by the Chairman and members of the Board of the Corporation.

• Continuous attention was paid to recover 5% balance of long outstanding dues (2002 – 2004) from the Department of Health Services and other defaulted Distributors.

• Reviewed the documents relating to procurement of raw materials and capital expenditure before submitting to relevant Procurement Committees.

• Reviewed draft audit report and made follow up actions for answering for audit queries issued by Auditor General’s Department.

• Considered the comments presented by the Management on matters raised by the Auditor General.

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The Audit Committee was of the opinion that terms of reference for the Committee were complied within all material respect.

Audit Committee Members

M R R Abayawickrama - Chairperson - Director-SPMC/Treasury Representative

P A Upali Ranjith Perera - Member - Director-SPMC

R S Ariyapperuma - Member - Director-SPMC

M R R Abayawickrama Chairperson – Audit Committee



Corporate Governance ReportCorporate Governance is the system by which companies are directed & controlled by the Management in the best interest of the stake holders ensuring greater transparency, betterandtimelyfinancialreporting.

Board of Directors is responsible for the Governance of the Corporation.

• DIRECTORS

The Board comprises professional and experienced persons from Engineering, Management, Pharmacology, Medicine, Legal, Marketing, Financial and Administration sectors.

The Board of Directors consists of one Managing Director who is the Chairman and six non Executive Directors

The Board meets at monthly intervals and in addition special meetings are also arranged as required, unless otherwise in the event of parliament has been dissolved or Board has not been appointed by Hon. Minister.

During the period under review, twelve board meetings were held.

• MANAGEMENTCOMMITTEE

Corporate Management Committee is headed by Chairman of the Corporation. The Committee comprises Heads and Deputy Heads of the Departments of the Corporation.

Management Committee makes decisions on day to day operations of the Corporation, implements the policy decision and strategic objectives as well as makes recommendations as and when necessary for Board of Directors to take policy decisions.

Management Committee meets at monthly intervals.

• AUDITCOMMITTEE

Audit Committee is constituted in accordance with the ‘Public Enterprises Guideline for Good Governance’ and Public Finance Circulars.

The Audit Committee is appointed by the Board and comprises three non – executive Directors of the Corporation. Director who represents Ministry of Finance chairs the Committee.

The Audit Committee independently examines and evaluates the activities of the Corporation. Internal Audit function carried out in accordance with “Internal Audit Plan” is approved by the Audit Committee with the notification of the AuditorGeneral.

DuringtheperiodunderreviewfiveAuditCommitteemeetings were held.

Audit Committee Report is set out in page 108-109.

• INVESTOR’S RELATIONSHIP & PUBLICACCOUNTABILITY

Public Enterprises are established, owned and operated by the Government on behalf of the Public.

Therefore Board of Directors and Managers of the Corporation are responsible for managing the enterprises to the Ministry of Healthcare and Nutrition as line Ministry and the General Treasury of the Finance Ministry.

Annual Report, Annual Accounts, Annual Budgets, Quarterly Performance Reports are forwarded to the sameauthorities,fulfillingtheaboveresponsibility.

Through out the democratic world, Parliament, consisting of elected representatives of the people, has been accepted as the ultimate authority on public Finance.

Annual Report which embodies the performance of the Corporation, Financial Statements, Auditor General’s Report is tabled in parliament for review by the Members of Parliament.

Being a Public Enterprise, the Corporation is also accountable for the “Committee for Public Enterprises” (COPE) of Parliament.

• REMUNERATIONPOLICY

Corporation’s remunation policy is set out on the recommendations of the Management Services Department of the General Treasury.

Directors allowances and perquisites are decided and paid in accordance with the applicable circulars in relation to allowances and perquisites of directors of Corporations issued by the General Treasury.

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Employees salaries are paid on salary scales prepared, based on Public Administration salary scales with the approval of the Department of Management Services of the General Treasury.

A perfomance incentive scheme is in place to link rewards directly to the perfomance.

• INTERNALCONTROL

The Board has responsibility to ensure that Corporation maintains a system of Internal Control, which is designed to provide reasonable assurance that all transactions entered into by the Corporation are properly authorized, recorded & reported.

Functional Organization Structure is in operation, departments are designed with defined activitiessuch as Production, Quality Control, Maintenance, Finance, Planning, Formulation Reserch & Development & Marketing.

Heads of each department directly report to General Managerwho is the chief operating officer of theCorporation.

General Manager reports to Managing Director, Chairman & Board of Directors.

Internal Control system is augmented by the internal Audit function. The Internal Auditor reports direct to the Chairman of the Corporation and Audit Committee thereby strengthening the independence of the Internal Auditor.

Competitive Tender procedure for procurement process is followed by the corporation in order to maintain the transparency of the transactions and thereby giving equal opportunities to interested parties.

The Annual Budget which includes the capital expenditure budged are approved by the Board and forwarded to Ministries of Health and Finance.



OUR PRODUCT MIXProducts Pack Size Products Pack Size

Aluminium Hydro.Tab. BP 500mg. 500 Indomethacin Cap. BP 25mg. 1000

Amoxicillin Tab. USP 125mg. 500 Mebendazole Tab. USP 500mg. 100

Amoxicillin Cap. BP 250mg. 1000 Mebendazole Tab. USP 500mg ( Sachet ) 24

Amoxicillin Oral Suspension BP 125mg/5ml 100ml Mebendazole Tab. USP 100mg. 500

Ascorbic Acid Tab. BP 100mg. 1000 Metformin Tab. BP 500mg. 500

Ascorbic Acid Tab. BP 500mg. 250 Pae.Co.trimoxazole Tab. BP 120mg. 200

Aspirin Tablets BP 150mg ( Enteric coated ) 500 Paracetamol Tab. BP 500mg. (Blister) 200

Atenolol Tab. BP 50 mg (Blister) 280 Paracetamol Tab. BP 500mg. 1000

Benzhexol Tab. BP 2mg. 1000 Paracetamol Tab. BP 500mg. 2000

Bisacodyl Tab. BP 5mg. 1000 Phenoxymethylpenicillin Tab. BP 125mg. 500

Carbamazepine Tab. BP 200mg 500 Phenoxymethylpenicillin Tab. BP 250mg. 500

Chloramphenicol Cap. BP 250mg. 1000 Prednisolone Tab. BP 5mg. 2000

Chloroquine Phos. Tab. BP 250mg. 500 Prednisolone Tab. BP 5mg. 1000

Cimetidine Tab. BP 200mg 500 Primaquine Tab. BP 7.5mg. 250

Cloxacillin Cap. BP 250mg. 1000 Propranolol Tab. BP 10mg. 250

Cloxacillin Oral Solution BP 125mg/5ml 100ml Propranolol Tab. BP 40mg. 1000

Co-Trimoxazole Tab. BP 480mg. (Adult) 1000 Rifampicin Cap. BP 150mg. 100

Diclofenac Sodium Tab.USP 50mg. 500 Salbutamol Tab. BP 2mg. 1000

Diclofenac Sodium Tab.USP 25mg. 500 Salbutamol Tab. BP 2mg. 2000

Diethylcarbamazine Tab. BP 50mg. 2000 Salbutamol Tab. BP 4mg. 1000

Diltiazem HCL Tab 60 mg (Blister) 500 Theophylline Tab. USP 125mg. 250

Erythromycin Stearate Tab. BP 250mg. 500 Theophylline Extended Release Tab. 125mg. 100

Folic Acid Tab. BP 5mg. 1000 Theophylline Extended Release Tab. 300mg 100

FamotidineTab.USP20mg(Blister) 500 TrifluoperazineTab.BP5mg. 1000

Frusemide Tab. BP 40mg. 1000 Verapamil Tab. BP 40mg. 500

Vitamin B Complex Tab. CHF 2000

Vitamin B Compound Strong Tab. BPC 1000

PRODUCTS TO BE LAUNCHED

Enalapril Maleate Tablets USP 5 mg Diltiazem Tablets USP (Film Coated) 30mg

Spironolactone Tablets USP 25mg

spmc annual report

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