Annual Report
Transcending boundaries is in our DNA. This is evident in how we continue to discover, develop and bring to market, new medicines and vaccines to address the unmet needs of
healthcare providers and their patients.
As a responsible healthcare company, we drive change by adopting new and innovative methodologies, aligned with our values, so that we can better serve the evolving needs of our
society and enable more patients to benefit from our medicines.
We firmly believe that keeping the patient at the heart of everything we do is integral to our success; inspiring us to continue on this journey and transcend boundaries.
GSK
Contents
002Our Vision, Mission and Core Values
004Corporate Information
006Financial Highlights
007DUPONT Analysis
008The GSK Story
010GSK Expectations
011Strategic Priorities
012Company Profile & Group Structure
014Our Behaviour
015Organogram
016Geographical Presence
017SWOT Analysis
018Finance
019Commercial Trade Channel (CTC)
020Information Technology
021Multi Channel Marketing (MCM)
022Human Resources
024Dermatology
026Vaccines
028Primary Care
030Specialty Business Unit
031Medical Affairs
032Awards 2016
034Global Manufacturing & Supply (GMS)
035Warehousing and Distribution (W&D)
036Environment Health & Safety (EHS)
038Quality Management System (QMS)
040Corporate Social Responsibility (CSR)
042Directors Profile
044Board & Management Committees
046Directors Report to the Shareholders
055Directors Report to the Shareholders Urdu
056Chief Executive Officers Review
060Financial Performance at a Glance
061Statement of Value Added
062Key Operating and Financial Data
065Direct Cash Flow Statement
066Horizontal Analysis
067Vertical Analysis
070Statement of Compliance with the Code of Corporate Governance
072Review Report to the Members
073Auditors Report to the Members
074Balance Sheet
075Profit and Loss Account
076Cash Flow Statement
077Statement of Changes in Equity
078Notes to and forming part of the Financial Statement
117Pattern of Shareholding
118Categories of Shareholders
120Shareholding Information
125Form of Proxy
127Form of Proxy Urdu
annual report 2016001
Our Vision,Mission and Values
Our Vision:GSKs vision is inspiring:
The opportunity to make a difference to millions of lives every day
At GSK we perform in unison by following our strong value system and ethical guidelines as a source of direction and inspiration to help achieve our vision.
Each and every member of the GSK family plays a vital role in improving the quality of human life. GSKs growth and development can be attributed to the contribution of the skills, talent and ideas of its people.
GSK follows its core values of respect for people, patient focused, transparency and integrity. We stand committed to help enhance the quality of peoples lives by providing them with quality products.
Our Mission:We are a science-led global healthcare company on a mission to help people
to do more, feel better and live longer
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Our values and StandardsDoing the right thing without having to be told to do it because you know in your heart and mind, its the right thing to do.
Our values guide our day-to-day actions. They reflect our belief that its not just what we achieve that counts, its also how we achieve it. Operating responsibly and ensuring our values are embedded in our culture and decision-making helps us better meet the expectations of society.
Be patient focusedWe focus on the individual, doing what is right for patients and consumers. We work with our partners and customers to improve healthcare and find new medicines and vaccines.
Act with integrityWe are a successful business that acts responsibly with integrity and transparency, living up to the standards that are rightly expected of us.
Demonstrate respect for peopleWe support and inspire our colleagues to help them be the best they can be and to achieve great things. We listen to the world outside of GSK and use our science and scale to take actions that advance healthcare.
Operate with transparencyWe are honest and transparent about what we do, how we do it and the challenges we face. We are open to challenge, to discussion and to improving how we work to reflect our values.
annual report 2016003
CorporateInformation
Board of Directors Mr. Dylan JacksonChairman
Mr. M. Azizul HuqChief Executive Officer
Mr. Abdul SamadChief Financial Officer
Mr. Husain LawaiIndependent Director
Mr. Mehmood MandviwallaNon-Executive Director
Mr. Nicolas RagotNon-Executive Director
Mr. Sohail MatinNon-Executive Director
Audit CommitteeMr. Husain LawaiChairman
Mr. Mehmood MandviwallaMember
Mr. Nicolas RagotMember
Mr. Dylan JacksonMember
Human Resource & Remuneration CommitteeMr. Mehmood MandviwallaChairman
Mr. Husain LawaiMember
Mr. M. Azizul HuqMember
Mr. Dylan JacksonMember
Management CommitteeMr. M. Azizul HuqChief Executive Officer
Mr. Abdul SamadChief Financial Officer
Syed Azeem Abbas NaqviCluster Legal Director - Pakistan and Iran
Dr. Naved Masoom AliDirector Medical Pakistan
Mr. Khalid Mehmood SethiBusiness Unit Director
Dr. Tariq FarooqBusiness Unit Director
Ms. Zainab HameedHead of IT
Syed Muhammad Salman HaiderDirector Commercial Excellence and Speciality Business Unit
Dr. Gohar Nayab KhanDirector Regulatory Affairs
Mr. Abdul Haseeb PirzadaHead of Corporate Affairs and Administration
Mr. Muhammad Arif TahirDirector Commercial Trade Channel
Mr. Ahmad Ali ZiaHR Cluster Head - Pakistan and Iran
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Company SecretarySyed Azeem Abbas Naqvi
Chief Financial OfficerMr. Abdul Samad
Chief Internal AuditorMr. Talal Javed Ahmed *
BankersCitibank NADeutsche Bank A.G.Habib Bank LimitedMeezan Bank LimitedStandard Chartered Bank (Pakistan) Ltd
* Talal Javed Ahmed Chief Internal Auditor resigned with effect from November 2016
AuditorsA. F. Ferguson & Co. Chartered Accountants
Legal AdvisorsMandviwalla & ZafarVellani & VellaniFaisal, Mahmood Ghani and CoLegal Consultancy Inc.
Registered Office35 - Dockyard Road, West Wharf,Karachi - 74000.Tel: 92-21-111-475-725(111-GSK-PAK)Fax: 92-21-32314898, 32311122
Website: www.gsk.com.pk
annual report 2016005
Financial HighlightsContinuing Operations
+15.71%Rs. 27,564 M
+1.54%19.53%
+7.11%41.85 Times
+0.08%12.82%
+5.46%Rs. 8.30
Sales Revenue(2015: 23,822 M)
Return on Equity
(2015: 19.21%)
Net assets per share
(2015: 39.07 Times)
Return on Capital employed
(2015: 12.81%)
Earnings per Share
(2015: Rs. 7.88)
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SalesRs. 29,457
x
+
+
+
Net ProfitRs. 2,762
Net Profit Margin9.4%
Return on Assets12.7%
Return on Equity20.4 %
Ownership Ratio63.99%
Assets Turnover1.39 Times
Owners EquityRs. 13,543
Total AssetsRs. 21,165
* Total Cost includes COGS, Selling, Admin, Other Expenses, Financial charges, (less: Other income )and Taxation.** Non Current Assets include Assets of disposal group classified as held for Sales/ Disposal*** Current Assets include Assets of disposal group classified as held for Sales/ Disposal**** Current Liabilities include Assets of disposal group classified as held for Sales/ Disposal
SalesRs. 29,457
Total AssetsRs.21,165
Total LiabilitiesRs. 7,622
Owners EquityRs. 13,543
Non Current Assets**Rs. 9,913
Non Current LiabilitiesRs. 791
Total Cost*Rs. 26,694
Current Assets***Rs. 11,536
Current Liabilities**** Rs. 6,507
DUPONT Analysisfor the year ended December 31, 2016
Rs. in million
annual report 2016007
The GSK Story
At GSK, we are on a mission to help people to do more, feel better, live longer.
We research, develop and manufacture innovative pharmaceutical medicines, vaccines and consumer healthcare products and are committed to widening access to our products, so more people can benefit, no matter where they live in the world or what they can afford to pay.
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Today there are millions of people without access to basic healthcare, thousands of diseases without adequate treatments and millions of people who suffer from everyday ailments. We want to change this.
Thats why we are harnessing our scientific expertise, our partnerships and our global reach to develop and make products for people who need them.
As a business we have responsibilities to society, and society has expectations of us. Our goal is to meet those responsibilities and expectations and, where possible, exceed them.
Behaving responsibly does not compromise commercial success, but enables it. By doing what business does best in our case, developing medicines, vaccines and consumer healthcare products and improving access to them we can deliver strong, sustainable performance and help improve the lives of people all over the world.
This is a big challenge. It means that weve had to change the way we do things often quite radically and we will continue to change, as we look for new ways to improve the lives of patients and consumers.
150 Years of providing groundbreaking medical solutions
A portfolio of up to 40 new me
