Analysis of Business Operations of

GlaxoSmithKline, Bangladesh
(An Approach to Reformulated Financial
Statement)

Internship Report
On

Analysis of Business Operations of

GlaxoSmithKline, Bangladesh

Executive Summary
GlaxoSmithKline started its journey in Bangladesh on the year 1949 as an importer of its own
products and its importing activities used to hold in Chittagong but eventually it emerged its
roles to manufacturing sector also and established factory in Chittagong. So, GSK is operating in
Bangladesh for 63 years and its really providing excellent service in Consumer Healthcare and
Pharmaceutical sector. GlaxoSmithKline has a strong Secretarial department which is working in
line with the strategies of the organization and working with the aim of attaining the mission and
vision of the company. The Finance department of GSK is mainly the combination of three
divisions and these are -Secretarial department, IT department and HR services and
administration department. This report tries to explore the inside scenario of secretarial
department. The whole report is divided into six parts. First part comprises of introduction part
which includes- objectives, methodology, scope, limitations of the study, second part comprises
of organizational overview which includes GSK worldwide to GSK Bangladesh. Moreover, third
part comprises a briefing on practices as an intern, its activities, techniques, perceptual errors,
fourth part comprises of the Function of Secretarial Department conducted at GSK Bangladesh
and fifth part includes findings and analysis of the research conducted through my internship
period sixth part comprises analysis of business operation of GlaxoSmithKline, Bangladesh and
last part comprises conclusion and recommendation and its effective implementation.

Chapter -1
Introduction

1.1 Introduction
1

GlaxoSmithKline (GSK) is a worlds leading research-based pharmaceutical company with a

powerful combination of skills and resources that provides a platform for delivering strong
growth in todays rapidly changing healthcare environment. It provides significant information to
identify and analyze the market need, market size and competition. This project is based on the
information of Secretarial Department of GlaxoSmithKline, a pharmaceutical company, and its
promotional activities and how more awareness can be created for the product in a most effective
communicating way.
It is the only British organization in the worlds top 20 pharmaceutical companies. Subsidiary
companies are established over 50 countries of the world many with their own manufacturing
facilities and the group have agency representation in more than 100 offices. GSK has leadership
in four major therapeutic areas- anti invectives, central nervous system (CNS) and respiratory &
gastro- intestinal metabolic. In addition it is a leader in the important areas of vaccines and has
growing portfolio of oncology products. GSK supplies products to 140 global markets and has
over 100,000 employees worldwide.GSK has 180 manufacturing site in 41 countries. There are
about 450 generics registered in Bangladesh. Out of these 450 generics, 117 are in the controlled
category i.e. in the essential drug list. The remaining 333 generics are in the decontrolled
category, the total number of brands/items that are registered in Bangladesh is currently
estimated to be 5,300, while the total number of dosage forms and strengths are 8,300.
Bangladesh pharmaceutical industry is mainly dominated by domestic manufacturers. .
Bangladesh Pharmaceutical Industry is now heading towards self-sufficiency in meeting the local
demand. The industry is the second highest contributor to the national exchequer after garments,
and it is the largest white-collar intensive employment sector of the country. The top 12 leading
pharmaceuticals company in Bangladesh including local and MNCs are - Square, Incepta
Pharma, Beximco, Opsonin Pharma, Eskayef, Renata, A.C.I., Aristopharma, Drug
International, Sanofi Aventis, GlaxoSmithKline .With an enviable image and reputation for
the past 6 decades GlaxoSmithKline (GSK) Bangladesh Limited running its operation as a
subsidiary of GlaxoSmithKline - one of the worlds leading research-based pharmaceutical and
th

healthcare companies. GSK is at 12 position among top 12 pharmaceuticals in Bangladesh.

Relentless commitment, setting of standards of ethical standards and quality backed leading edge
technology of the Company has built a strong relationship between the stakeholders and GSK
Bangladesh. With the ever committed 701 numbers of personnel all over the country GSK
Bangladesh, which now comprises of both pharmaceutical and consumer healthcare products,
continually strive to meet the organizations mission. As a Finance major I have done internship
under Secretarial Department of GSK and carried out internship report based on the topicSecretarial Practice of GlaxoSmithKline Bangladesh Limited. assigned by my academic
supervisor Ms. Syeda Mehruna Mahbub.

1.2 Origin of the Report

2

Internship Program of United International University is a Graduation requirement for the BBA
students. This study is a partial requirement of the Internship program of BBA curriculum at the
United International University. The main purpose of internship program is to get the students
exposed to the job world. Being an intern, the main challenge is to translate the theoretical
concepts into real life experience.
The internship program and the study have following purposes-

To get and organize detail knowledge on the job responsibilities.

To experience the real business world.
To compare the real scenario with the lessons learned in United International University.
To fulfill the requirement of BBA Program.

This report is the result of three months long internship program conducted in GlaxoSmithKline
Bangladesh Limited and is prepared as a requirement for the completion of the BBA program of
United International University. As a result I need to submit this report based on the Analysis of
Business Operation of GlaxoSmithKline, Bangladesh. This report also includes overview
information of the organization of GlaxoSmithKline Bangladesh Limited.

1.3 Objective of the Study

1.3.1.

General Objective

The general objective of this section is to gain knowledge about the company and its current
functions and also analyze company's current performance.
1.3.2.

Specific Objective

To be more specific, this study entails the Analysis of Reformulated of Financial Statement and
Secretarial Analysis of GlaxoSmithKline Bangladesh Limited to figure out and observe the
Secretarial performance of GSK BD Ltd.

1.4 Scope of the Study

Defining the scope of the study is a broad aspect to be described. Still the Secretarial & Finance
Department helped me a lot to prepare the report. On the other hand due to some confidential
resolutions there were difficulties to find out some information as well. The scope of the study is
basically limited to the analysis of the present Secretarial activities of GSK, Bangladesh, Limited
and to the analysis of the strengths and weaknesses of the system to recommend best practices
for GSK.

1.5 Methodology
To make the report more meaningful and presentable, two sources of data and information are
used widely. Both primary and secondary data sources are used to prepare this report. There are
some records collected from various resources of the company.
1.5.1 Selection of the Topic:

My supervisor assigned the topic of the study. Before the topic was assigned it was thoroughly
discussed so that, a well-organized internship report can be prepared
1.5.2 Sources of Data

To carry out the study both primary and secondary data were used.
1.5.3 Primary Sources

To collect all these data, I had to commence an interview with the Finance Manager &
Secretarial Executive who could give the actual information that was required to prepare an
authentic report. Personal observation plays a big role to make the report perfect.
1.5.4 Secondary Sources

Referring to the secondary sources I mainly used the web site of GlaxoSmithKline Bangladesh
Ltd. and also other reports of GSK so that I could manage to study on the purpose of preparing
the report.

1.6 Limitations of the Study

1. Due to time constraint, I could not make the report a more detailed one.
2. Lack of previous literature and scarcity of other secondary information.
3. Study on Secretarial practice needs lots of deskwork which also needs huge time so lack of
proper time was also one of the major limitations.
4. Respondents unwillingness/ hesitation on providing confidential information. They felt they
are leaking out some information, which they are not supposed to.
5. Authority was not available as they had to maintain a lots work.
Although there were many limitations I tried to give my best effort to furnish the report.

Chapter -2
Organizational Overview

2.1 History of GSK, Products of GSK and GlaxoSmithKline (GSK)

Bangladesh Limited
This report is fulfilled and supported by GlaxoSmithKline (GSK) Bangladesh Limited. It is a
worlds leading research-based pharmaceutical company with a powerful combination of skills
and resources that provides a platform for delivering strong growth in todays rapidly changing
healthcare environment. It is the only British organization in the worlds top 20 pharmaceutical
companies. Subsidiary companies are established over 50 countries of the world many with their
own manufacturing facilities and the group have agency representation in more than 100 offices.
GSK has leadership in four major therapeutic areas- anti invectives, central nervous system
(CNS) and respiratory & gastro- intestinal! Metabolic. In addition it is a leader in the important
areas of vaccines and has growing portfolio of oncology products. GSK supplies products to 140
global markets and has over 100,000 employees worldwide.GSK has 180 manufacturing site in
41 countries. Every second, this organization distributes more than 35 doses of vaccines. Every
minute, more than 1100 prescriptions are written for GSK products.
2.1.1
GlaxoSmithKline- At a Glance:
GSKs mission is to improve the quality of human life by enabling people to do more, feel
better and live longer
GSK is a research-based pharmaceutical company.
GSK is committed to tackling the three priority diseases identified by the World Health
Organization: HIV/AIDS, tuberculosis and malaria
GSKs business employs around 99,000 people in over 100 countries
GSK makes almost four billion packs of medicines and healthcare products every year
In November 2009, GSK launched ViiV Healthcare, a global specialist HIV company
established by GlaxoSmithKline and Pfizer to deliver advances in treatment and care for
people living with HIV.
Many of their consumer brands are household names: Ribena, Horlicks, Lucozade,
Aquafresh, Sensodyne, Panadol, Tums, and Zovirax
2.1.2
GlaxoSmithKline in time
Every second, more than 30 doses of vaccines are distributed by GSK.
6

 Every minute, more than 1,100 prescriptions are written for GSK and every hour, GSK
spends more than US $ 450,000 to find new products.
Every hour, GSK donates more than US $ 148 million in cash and products to communities
around the world. 4.3 History of GlaxoSmithKline
Year

History

1873

The company was oriented as Joseph Nathan & Company in New Zealand with the
founding of a small import export company. It started its operation as a processing
unit of abundant fresh milk of New Zealand. The only product it was producing was
Glaxo Baby Food.

1875

It started to export baby food to UK Alec Nathan, son of Joseph Nathan, coined the
name Glaxo from Glactose.

1924

Joseph Nathan & Company entered the pharmaceutical industry with the
manufacture of Ostelin, the first Vitamin D preparation. The importance of the
pharmaceutical market was soon realized

1935

Glaxo Laboratories Limited was founded with its headquarters at Greenford,

Middlesex and London for the production and marketing of foods and
pharmaceuticals.

1947

After the 2nd world war, Glaxo developed rapidly. Glaxo Laboratories Limited
absorbed its parent Joseph Nathan & Company, and became a public company.

1963

Edinburgh Pharmaceutical Industries Limited, which owned Duncan, Flock hart and
Company Limited and MAC Far lane Smith Limited, joined Glaxo.

1995

Glaxo acquired 100% share, of Wellcome PLC on may 01, 1995 and formed Glaxo
Welcome PLC.

1998

Glaxo Wellcome achieved a number of regulatory milestones for several of its key
projects, such as ZEFFIX for the treatment of influenza.

2000

Glaxo Wellcome and SmithKline Beecham merged to form GlaxoSmithKline; a

worldwide research based pharmaceutical company.

SmithKline

SmithKline Beecham
((1989)

Glaxo

Glaxo Wellcome
(1995)

Beecham

Burroughs
Wellcome
GlaxoSmithKline, 27th
December, 2000
Figure -1: Merging History of GSK

2.2 GlaxoSmithKline- Mission, Strategic Intent & Spirit

2.2.1
Mission
The mission statement of the business-Our global quest is to improve the quality of human
life by enabling people to do more, feel heifer and live longer
2.2.2
Strategic Intent
Our strategic intent states of business goal We want to become the indisputable leader in our
industry.
2.2.3
Spirit: Our company spirit describes how we need to behave if we are to
achieve our goal We undertake our quest with the enthusiasm of entrepreneurs,
excited by the constant search for.
2.2.4
Vision
Becoming the undisputed leader in the industry means conquering the challenges that will be
face as an industry and as a global society.
Quality Statement: Quality is at the heart of everything we do- from the discovery of the
molecule through product development, manufacture, supply and sale- and vital to all the
services that support our business performance.

2.3 Global Operation

The operation of the company splits into three geographical region- Europe, the USA and
International and each of which has separate pharmaceutical and healthcare organizations. GSK
pharmaceuticals International regions divided into seven geographical areas. The complete
division is shown belowGSK World wide

International
Region
Europe

Canad
a

Chin
a

USA

Japan

International Region

Latin
America
8

Middle
East

Sub
Sahara
Africa

Asia
Pacific

Bangladesh

India

Sri Lanka
and
Singapore

Figure 2: Workstation of GSK

2.4 GlaxoSmithKline Bangladesh Limited

With an enviable image and reputation for the past 6 decades GlaxoSmithKline (GSK)
Bangladesh Limited running its operation as a subsidiary of GlaxoSmithKline plc- one of the
worldss leading research-based pharmaceutical and healthcare companies. In 1949 the Company
commenced its journey in Bangladesh with its corporate identity as Glaxo in Chittagong as an
importer. In 1967, the company established its own manufacturing unit at Chittagong. The
facility till date is considered as one of the Centre of Excellence in Global Manufacturing &
Supply Network of the Group. The global corporate mergers and acquisitions have seen the
evolution of the Companys identity in the past 6 decades. In line with mergers and acquisitions
the identity changed from Glaxo to Glaxo Wellcome Bangladesh Limited following the
Burroughs Wellcome acquisition in 1995 and finally to GlaxoSmithKline Bangladesh Limited
during 2002 after merger with SmithKline Beecham in December 2000. The mega merger of the
Company enables it to deliver cuffing edge advancements in health care solutions. The relentless
commitment, setting of standards of ethical standards and quality backed leading edge
technology of the Company has built a strong relationship between the stakeholders and GSK
Bangladesh. With the ever committed 701 numbers of personnel all over the country GSK
Bangladesh, which now comprises of both Pharma and Consumer, continually strive to meet the
GlaxoSmithKline mission.

2.5 Operations in Bangladesh Headquarter

GlaxoSmithKline Bangladesh Limited
Corporate Office
House # 2A, Road # 138.

Registered Office & Factory

Fouzderhat Industrial Area
North Kattali, Chittagong.

Gulshan-l.

District Marketing Office

GlaxoSmithKline Bangladesh Limited has twelve districts Marketing Offices (DM0) throughout
the country. These are divided in five zones by which GSKs products are sold.

District Marketing Offices: GSK has 12 District Marketing Offices (DM0) in Bangladesh.
The locations of DMOs are shown belowZone

DMO (District marketing officer)

Dhaka
Chittagong
Comilla
Bogra
Khulna
Barisal

Dhaka, Mymensing
Chittagong, Maijdee
Comilla, Sylhet
Bogra, Rajshahi, Rangpur
Khulna, Jessore
Barisal

Table: List of DMOs

*Source: Secondary data, provided by Marketing Department

2.6 Products of GSK Bangladesh LTD

GSK is committed to develop new and effective heath care solutions. The values on which the
group was founded have always inspired growth and will continue to do in times to come. In
Bangladesh.GSK is providing both Pharmaceutical and consumer Heath care products for its
consumers.
GSK works in the two broad areas of products markets:
1. Pharmaceutical : prescriptions, medicine and vaccines
2. Consumer Healthcare: Over the counter medicines, Oral care and nutritional healthcare
products

Product overview:
1. Pharmaceuticals:
GSKs board pharmaceuticals product line includes antibiotic, antidepressant,
gastrointestinal, dermatological, respiration, cancer and cardiovascular medications. GSK
has a variety of vaccine products, including hepatitis A and B, diphtheria, tetanus,
whooping cough and influenza.
2. Consumer Healthcare:
GSK Consumer Health brings oral health care, over the counter medicines and nutritional
health care products to millions of people.
GlaxoSmithKline Products Glossary
Local production

60 products including
Berm
Cytamen
Kefdrin
Pentamox
10

Imported product

Vaccines

Consumer Healthcare

17 products including
Alkeran
Seretide
Zinnat
17 products including
Engerix-B
Fluarix
Synflorix
9 products including
Horlicks Chocolate
Horlicks Junior
horlicks Mother
Horlicks
Horlicks Lite Boost
Maltova
Glaxose

2.7 Functional Department of GSK

GlaxoSmithKline, Bangladesh, Limited comprises of five major departments. Each department
of GSK operates in different aspects but they are inter-related as well as complementary to each
other.
Above mentioned functional departments are worked under the Managing Director. The
companys delegation of authority is decentralized. The main functions of these departments are Human Resources
Marketing
Finance
Medical and regulatory affairs
Information Technology
2.7.1
Human Resources
HR department is one of the most active departments in GSK. Previously this department was
known as Personnel Management department. The company places great emphasis and
commitment in developing the human resources as the management body believes that only the
best people with professional competencies can contribute successfully to achieve the
organizations goals. GSK has two HR Division, one is at corporate head office and other one is
Chittagong factory office. There are four functional sub-departments. They are- HR
Development, HR Services, HR Administration and Industrial Relations. First three sub
departments are looked after by corporate head office HR division and last one is looked after by
Chittagong HR division. There are various functions of HR department of GSK. The main
activities of this department are given below-

11

1.
2.
3.
4.
5.
6.

Recruiting and training the best pool of employees according to companys requirement
Administering smooth workflow in the organization
Managing demands of the labors in the factory
Allocating annual holidays
Organizing motivational programs for employees
Looking after the wage structures and waivers

2.7.2
Marketing
The pharmaceutical industry of Bangladesh has limited field for marketing. Yet in an age of high
competition like todays, firms are heavily spending and effectively practicing marketing. The
summary of marketing functions is given below1.
2.
3.
4.
5.
6.
7.
8.
9.

Designing and implementing sales strategies

Controlling and updating distribution network
Designing and carrying out promotional programs
Providing marketing information services
Controlling international trades
Keeping records of data regarding marketing activities
Building up public communication network
Looking after all the brands and patents
Conducting marketing surveys as needed

2.7.3
Finance
GSK gives proper importance to their finance department The financial statements of GSK have
been prepared in accordance with Bangladesh Accounting Standards and the relevant
requirements of the schedule to the Securities and Exchange Rules, 1987 and of the companies
Act 1994 following the historical cost conversion. The primary tasks of finance department are
given below1. Controlling the accounts
2. Completing annual budgets
3. Allocating all kinds of payments to the staffs and managers
4. Looking after all the revenue and expenses
5. Conducting internal audit
6. Keeping records through IT
7. Facilitating local production costs
2.7.4
Medical and Regulatory Affairs
Medical and Regulatory Department of GSK, Bangladesh is compiled with required number of
doctors and qualified people. This department is primarily responsible to perform tasks like
liaison with government for legal issue purpose, communicate with doctors, handling
advertisements, etc.

12

2.7.5
Information Technology
The technical department of GSK is extraordinarily strong. The organization always strives for
reaching the global standard of applications of information technology. This company is one of
the very few companies in Bangladesh that use world class sophisticated software.

2.8 GSKS Market Share & Position Comparison

Top 12 Pharmaceutical Companys Comparison

Companies

Market share

Ranking

SQUARE
INCEPTA PHARMA

19.18%
9.05%

1
2

BEXIMCO
OPSONIN PHARMA

8.62%
4.94%

3
4

ESKAYEF
RENATA

4.84%
4.73%

5
6

ACME
A.C.I.
ARISTOPHARMA
DRUG INTERNATIONAL

4.44%
4.08%
3.99%
3.75%

7
8
9
10

SANOFI AVENTIS
GLAXOSMITHKLINE

2.57%
1.95%

11
12

13

Chapter -3
Job Description as an
Intern

Cha

14

3.1.

Activities at GSK

I started my internship program in GlaxoSmithKline Bangladesh on 1 st September 2015 and I

finished it by November 2015. My supervisor sir is Syeda Mehruna Mahbub from whom I get a
lot of opportunity to understand the different activities of Secretarial Department.While doing the
internship program, so far the activities I did and the activities I learned from asking others from
my curiosity referring from the other departments than that off Accounts and Finance
Department, I tried to put those knowing here at my best (Source: www.gsk.com).

3.2.

Work Related

3.2.1.
Know the secretarial function
Firstly I had to know the file settlement of the Department through the hard and soft copy file
list. The name of the files and in which drawer its kept up.
3.2.2.
Verifying the expense claims
Every month, GSK confronts with a numerous numbers of expense claims which GSK is
supposed to disburse as per company policy. The policy refers theses payments as allowance to
the employees. There are two types of expense claims and those are:
Travelling Expense
Medical Expense
This is what something which is allowed for all the employees including Corporate Office, GMS
Factory and DMO or field as well. But in terms of medical policy, GSKs allowance is available
for the employees spouse and children as well up to a certain age until or unless he/ she is not a
minor. There are some costs which are known as Remuneration which are allowed for the
Managers of the Corporate Office and DMO. Aside from these remunerations the Directors are
the main receiver of the remuneration from the company. The claims are supposed to be verified
with priority basis in every month as it is an audit issue. Throughout the month I checked these
travelling and medical bills collected from throughout the country.

15

3.2.3.
Verifying T &E Forms
The expense claims of the Corporate Office and GMS factory are supposed to be sent through
T&E Forms. This form allows employees to place their claims for further approval from their
Bosses and as soon as the Boss gives the approval, Secretarial Legal Department goes for further
processing. I checked this T & E forms bills for salary payments at each month.
3.2.4.
Final Settlements
If any of the employees leave GSK or gets terminated by GSK, Secretarial Department arranges
a document known as Final Settlement Copy, which refers to keep the document as evidence for
both the parties acknowledging that GSK dont have any claim with the person any more neither
do the party. I had to punch the documents and make files provided by our supervisor.
3.2.5.
Know how to use photocopy machine:
Secretarial Department plays big roles to keep the sensitive information of the employees. High
secrecy is maintained here. For this, maximum time I had to make a photocopy of those
documents. By this time I also know the basic function of using the machine.
3.2.6.
Data entry:
The bills which have been checked like travelling, medicals are needed to put the data into Excel
worksheet. In addition many others data entry were taken place by me.
3.2.7.
Uses of Microsoft word and Excel Worksheet
Sometimes I have to prepare letter of application for the Securities Exchange as well as for the
different organization. On the other hand, much other information like Motor cycle related
information also need to entry into the Excel sheet.
3.2.8.
Preparing Files and folders
Most of the times I had made personal files. These personal files were needed to make by name
and employee Company code. I also separated the bills with folder like Chittagong GMS bills
and Corporate Officers bills.

3.3.

Organization Wide

3.3.1.
Time Management Skill
Maintaining the office time is very important. My office hour was 8.30am-5.00pm. I always tried
to maintain the time. I finished all the works on time which where gave by my supervisor.
Managing time is not that much tough. If we finish our day to day work then it becomes so
easier. Though this internship period I became more efficient and learned to make the best use of
time. Most of the times I have stay in office till 6.00.
3.3.2.
Good Team Work
Working in a team sometime it makes the work easier and sometimes it become so hard to work
in a team. I really like to do team work. My coworkers were also very helpful and supporting.
Not only with the interns I had done all my works jointly with every sector of people.

16

3.3.3.
Stress Management Skill
Managing all the work under pressure is part of job. Whatever the situation is we cant show our
problem or stress to our office and have to complete the work properly. Doing internship in GSK
my stress management skill also increased.

Chapter -4
The Project

17

4.1.

Introduction

Corporate Secretarial department of GSK plays an important role for achieving goals of the
company, satisfaction of the shareholders and fulfillment of the requirement of the regulatory
bodies of the land. This department performs all-important function of the company

4.2.

Secretarial Department

The contribution of Secretarial Department to achieve corporate goal is very significant in

GlaxoSmithKline Bangladesh Limited. The multi dimensional function of GlaxoSmithKline
Bangladesh Limited is discussed bellow.
The company Secretary is the head of the department Mr. Sarwar A Khan plays the dual role,
policy maker as an important member of the Board of Directors and Chief Administrative Officer
as Secretary of the company. Mr. Khan leads five departments of the company such as Corporate
Accounting, Secretarial, Information Technology, Internal Audit and Factory Finance.

4.3.

Organogram
Corporate Secretarial Department
Finance Director cum
Company Secretary

Assistant Company Secretary

Secretarial Officer
Figure: Organgram of Secretarial Department.
18

4.4.

Meetings

Secretarial department organizes the meetings of Directors and Shareholders (General Meetings)
and keeping all records such as minutes of meetings of Board and Shareholders in the Minutes
Book as per regulatory requirement. Secretarial Department is responsible to serve notice of
AGM with printed Annual Report in proper time to the proper recipients as per provisions of
Laws.
There are three types of meetings
Board Meeting: The duty of Company Secretary is to collect information relating to the
board meeting, provide relevant papers and documents to the Directors, arrange
necessary stationary items for the meeting, prepare the attendance sheet for the board
members, pay Directors attendance fees and inform the board about the leave of absence,
if any.
In addition after the board meeting the Company Secretary prepare the minutes or the board
meeting and signs it from chairman, distribute it to the board of Directors and affixes the minutes
in the minute s book.

Annual General Meeting (AGM): The Company Secretary of GSK prepares a series of
program relating to the meeting in compliance with the statutory requirements and
provision of the Articles of Association of the company, the Stock Exchange and with the
Securities and Exchange Commission requirements. Annual Accounts and authorize the
Chairman to sign the Directors report on behalf of the board. Auditors report, Directors
report are approved here. Company Secretary is authorized to send the notice to the
members of the meetings. Dividend warrant and share transfer issues are instructed to the
Company Secretary.

Extra-Ordinary General Meeting: In case of price sensitive information taken in

board meeting Company Secretary inform it to the Stock Exchange and Securities
Exchange Commission within half an hour over telephone or otherwise. At least
nationwide dailies (one Bangle and one English) are used to take steps to publish
price sensitive information.

4.5.

any
and
two
this

Share Management

Share management of the Company is computer based. Transfer of shares, splitting of shares,
issue, re-issue of share certificates, signature verification of shareholders, updating of members
register and share transfer register are done by Secretarial Department. Day to day function is
managed by using computers in an effective manner. Such as
Signature Verification: Share department maintain a signature database of the member of the
company.

19

Share Transfer: Transfer of share is one of the main functions of corporate secretarial
department of GSK. Entry in the transfer register is given. A new folio number is opened for the
transferee. Two signatures such as Managing Directors and Company Secretary put their
signature. Manager of the department endorse the name of the transferee at the backside of the
share certificate under the authorized signatures. Share scrip is given delivery within 7 days after
the day of lodgment of transfer instrument.
Share Split: Allows odd lot certificate join and make them market lot quickly. A corporate action
in which a company divides its existing shares into multiple shares. Although the number of
shares outstanding increases by a specific multiple, the total dollar value of the shares remains
the same compared to pre-split amounts, because the split did not add any real value.
New Certificate: In case of lost, cancelled, torn and other cases new certificate can be printed
very quickly.
Certificate locking : A certificate of deposit that the depositor agrees not to trade for the
duration of the share. This is basically a paper share. Before the selling of the share it is a locking
certificate.
Returns and Reports: Returns and report easily generated from the system.
Dividend payment
Secretarial Department prepares list of member entitle for dividend while a period usually 15
days book closure in announced before AGM. Dividend Warrant are printed in Share
management Software and send to the members as per registered addresses by courier service
within 60 days from the date of AGM as per provision of the act.
Statutory Records
Registers, Books as per regulatory requirement are kept by this department.

4.6.

Other functions of Secretarial Department

Accounts related: GSKs Secretarial Department enjoys a completely computerized accounting

system. For the financial accounting it uses famous software named (Client Enterprise-Tetra
CS/3).Financial accounting comprises of General ledger, accounts payable, Cost center
accounting. Though report writing any reports can be generated from the system database.GSK
Secretarial Department use another software programs name VISTA 3P to account for the
payroll information of the management staff, maintain Provident fund and Pension fund
Accounting. Monthly salary of the members of the management of GSK processes and paid by
the Secretarial Department on the basis of advice, policy provided by the HR Department.
Management salary is paid to Bank account of the employee through electronic transfer. The

20

name of the software uses in this regard is HEXAGON. Payment of utility are paid in cash
account at the end of each month.
Legal and Corporate Affairs
Matters relating to lease and other important Agreement: Secretarial Department of GSK
plays an important role in the case of lease agreement and other agreement, such as employment
contracts, underwriting agreement etc. The Company Secretary may one of the signatories of
such agreements.
Submission of Returns: Company Secretary provides the information to
The Register of joint stock Companies (RJSC)
The SEC
The Stock Exchange
Trade Market related matters: GSK produces new product regularly. For safety dealing of
operation, each product to be registered to the trade marks authority. The Secretarial takes the
necessary steps for registration of Trade Marks of each product of the company.
Litigation: The Company Secretary and with the assistance of the Secretarial Department GSK
looks after all the litigation relating to the Company affairs. During this job they accept support
for the legal Advisor of the company by taking opinion and mode of action. From time to time,
all of this information is informed to the members of the Board of Directors and the people or
instruction concerned aware of this.

21

Chapter -5
Findings & Analysis

22

Analysis
Troubles observe in the organization
The internship period was actually 3 month times. Within this time I face several problems
regarding this work. I usually face the following problems:
There are some areas where I have no idea before.
Office hour normally 8:30 A.M. To 5:00 P.M. being a student its hard to work such long
time.

Sometimes all of the offices are too busy to talk, so at the end its tough to learn.

Sometimes officers dont want to give the responsibility types work to the intern.

Sometimes officers give odd job like filling, arrangement file, stapling etc.

Although the official of the organization seemed to be very cooperative, they may not
answer some question as these may be their trade secret.

The information taken from website it insufficient.

The conclusion had to be made from mere guesswork.

Difference between the academic knowledge and practical work

There are always some mismatch between the academic knowledge and practical knowledge.
There are all sorts of reasons to get an education. It gives us perspective on the world, it makes
us a complete person, and of course most importantly of all, it helps us build a career but
sometime academic knowledge and practical knowledge may differ.45% of employers say lack
of skill is the main reason for entry level vacancies. Students would be more benefited if we
got
Some practical work training before we start our internship.
We are read all USA books but need flow the Asian books

Some missing knowledge and skills that need to be learned in the university
23

th

I started my internship program at GlaxoSmithKline Limited on the 8 , September 2013.

Throughout the 3 months internship period I had great opportunity to have practical experience
on the function of Secretarial Department. Within this time I have faced several problems,
though I dont have much knowledge about the functions of the Company, but here I suggest
several steps can be taken to solve the problems.
It is better if the University give us some opportunity like:
Proper guidance needed to select perfect organization for internship.

Should add a new subject on different function of an Organization in university major

course.

Faculties can share practical example in the context of our own Departmental
function.

Make student familiar with some Activities related software use and its implication.

Make student familiar with different practical practices of an Organization.

Learnings from the Internship program

On my internship period at GlaxoSmithKline I have learned so many things practically.
Sometime I have faced difficulties especially at the beginning of my internship program but after
that it gets easy for me. This practical experience helped me a lot in my future career .I had
learned many things from GlaxoSmithKline and those I think helped me in every sector in my
life. Those are

Maintaining punctuality.
How to deal with employee
How to communicate with different types of people.
How to manage difficult situation.
How to work under pressure.

Findings of the study

I have conducted my report on part of the topic of Functions practices in the Secretarial
Department.
From the three months internship I have found several problems and I am trying to discuss it
bellow:

Improper File List:

Secretarial Department does not have proper File list. When Supervisor asked to bring the file
there was confusion during find the Files. In addition there was mismatch among the Soft copy
and hard copy and even with the drawers.

Employee Shortage:
24

The main problem which I found that is the employee limitation. During my internship period
there was a huge work need to done by the two employees. It is totally very difficult to access all
the shares related issues, provident funds as well as the bills of huge employees.

Stressful Situation:
Each and every month they have to check and verify 1600-1700 employees bills. At the end of
each month they transfer the salary and expense through employees Bank accounts. It makes
pressure to the employees mind including doing other activities at the same time of the
Department.

Difficult to Check:
It is really very tough to check all employees travelling and medicals bills. At a time they have to
maintain several rules and regulation provided by the Company.

Fake bills:
It becomes very difficult to find out the real bill when an employee makes cheating bills. They
never show the invoice rather than claims for that bill. In addition sometimes even of knowing
the policy they makes claims for mouth wash, ORS etc which are prohibited for them.

Show Cause:
It is a big issue for the employee to demonstrate the cause for specific claims. When authority
feels confusion they ask for that specific employee to show the reason like having a proper
knowledge why you claims for mouth wash do. It becomes very difficult to ask reason from the
employee side.

Network Harassment:
Sometimes the employee fells hesitate to do the work properly due to the slow of networking
system. In addition the entered data of both the system of HRS and 3P software are mismatch.
Which lost the time of the employee to found the real fact and where is that fact.

Insufficient IT supports:
It department is basically under the Finance Department but their service is not that much fast.
The executive of the IT department is not proper trained up and cooperative. For an example
from two to three months they are installing the antivirus of intern Computer.

Improper Knowledge:
Sometimes have to face problems while they verify the medical and travelling bills. As they are
not from medical background it is difficult to identify which medicine is for which diseases, thus
they have to search for Google and go for Doctors advice.

25

Communication Gap:
Secretarial Department has a communication gap with the employee as well as with the intern.
Sometimes they do not provide the information to the audit group as well as not cooperative with
us.

Internal Conflict:
Secretarial Department has internal conflict with other Department like Accounts said that it is
your job but Secretarial says that it is your job. In addition Accounts Department sometimes keep
the emergency work as pending.

Chapter -6
An Approach to
reformulated Financial
Statement

26

An Approach to Reformulated Financial Statement Analysis

This section shows how the three business activities are depicted in the financial statements. It
also shows how the statements are redesigned to highlight these activities and to prepare the
statements for applying valuation.
Product and input markets

The firm

OR
Custom
er

Capital markets
F

Net
operati
ng
asset
(NOA)

Debt
holders
or
debt
issuers

Net
Financi
al
asset
(NFA)

Supplie
rs

OE

Shareh
older

Figure: All stocks and Flows for a firm

Above figure depicts the stocks an flows involved in the three business activities-financing,
investing and operating activities. It is common however, to refer to the operating and investment
activities together as operating activities, because investment is a matter of buying asset for
operations. So I try to distinguish operating activities from financing activities.
Free cash Flow, C-I: Free cash flow is cash flow from operations less cash investment in
operations. The sources of free cash flow can be showed as,
27

C-I=OI-NOA
Year

2010

2011

2012

2013

2014

Free cash flow, C-I

C-I

353,27
3

278,242

(124,465)

(7,979)

C-I
3,500,000

3,196,562

3,000,000
2,500,000
C-I

2,000,000
1,500,000
1,000,000
500,000 353,273278,242
(500,000)

2010

2011 (124,465)
2012 (7,979)
2013 2014

GSK was able to generate enough

free cash flow from year 2010 to 2011 but from 2012 they were failure to generate positive free
cash flow in the year of 2012 and 2013.The reason of negative cash flow was they couldn't earn
enough operating income compare to their investment in operating asset. But In 2014 they had
generated huge amount of free cash flow. So, their operating income was much higher than their
cash investment in operation.

Disposition of free cash flow

C-I =NFA -NFI + d
In 2010,2011 and 2014 GSK had positive free cash flow which was used to pay net dividends,
with the remainder invested in net financial assets, along with the net financial income.
C-I = NFE-NFO + d
GSK used their positive free cash flow either to pay dividends or to pay net financial expense or
to reduce net borrowing cost.
Dividend: The part of income that is paid to their shareholders. It is denoted as, d. Dividend can
be determinant by two ways

d=C-I+NFI- NFA
28

d=C-I-NFE+NFO

In this case, I have selected d = C-I+NFI- NFA since the NFA is greater than NFO. Dividend is
paid out by if he firm enough free cash flow or positive net financial income from financial asset
or by liquidating firm's financial asset.
Year
Dividend, d

2010

2011

2012

2013

2014

295,358

73,516

(738,836)

(741,800)

5,828,068

Net dividend,d
7,000,000
6,000,000
5,828,068

5,000,000
4,000,000

3,000,000
2,000,000
1,000,000
- 295,358
2010 73,516
2011
2012
2013
2014
(1,000,000)
(738,836)
(741,800)
(2,000,000)

In the year of 2010 and 2011 they

paid dividend their shareholders. But due to lack of free cash flow they couldn't pay dividend
from their operating income to their shareholder in 2012 and 2013.In spite of negative free cash
flow, they gave dividend to their shareholder to maintain signaling effect by taking more debt. In
2014 they had paid a large amount of dividend to their shareholder from interest earned on
financial asset.
Net Operating Asset: Net operating asset just simply the difference between the operating asset
and liabilities.
NOA=OA-OL
Year

2010

2011

2012

2013

2014

NOA

1,488,884

1,567,268

1,564,422

1,927,864

2,423,128

29

NOA
2,500,000
1,927,864

2,000,000
1,500,000

1,488,884 1,567,268 1,564,422

NOA

1,000,000
500,000
-

2010

2011

2012

2013

GSK's net operating asset was

increasing at increase rate over the last five years that indicates that they are investing in
operating asset by selling off or liquidating their financial asset or their operating liability
reduced ,or taking more debt.

Change in net operating asset, NOA: The changing pattern of net operating asset current year
compared to the past year. NOA can be positively changed if there is positive change in
operating income but negatively change if there is free cash flow. The drivers of net operating
assets are NOA t= OI t-(C-I)t
Year

2010

2011

2012

2013

Change in NOA

78,384

(2,846)

363,442

495,264

30

NOA
400,000

363,442

350,000
300,000
250,000

NOA

200,000
150,000
100,000
50,000

78,384

2010
(50,000)

(2,846)
2011

2012

The firm's net operating asset, NOA positively changes from 2010 to 2013 indicates that GSK
was able to generate positive operating income from their operation. But only in 2010 the
changes was negative it happened because operating liability increase over the operating asset.

Net Financial Obligation(NFO) : It is just simply the difference between the financial asset and
financial obligations
NFO=FO-FA
Year

2010

2011

2012

2013

2014

Change in NFO

(660,582)

(735,660)

(988,790)

(1,658,353)

(2,511,733)

31

NFO
2010
(200,000)

2011

2012

2013

(400,000)
(600,000) (660,582)
(735,660)
(800,000)

NFO
(988,790)

(1,000,000)
(1,200,000)
(1,400,000)
(1,600,000)

(1,658,353)

(1,800,000)

Firms net obligation has decreased

over the past five years. That means their financial obligation was reduced compared to their
financial asset. In the last five years GSK paid off their obligation gradually that leads to
decrease in net financial obligation.

Change in net financial obligation, NFO: It means the changing pattern of net financial
obligation of current year compared to the past year. NFO can be positively changed if either
the financial expenses are increased or negative impact if enough free cash flow to reduce the
debt or to pay dividend firm may borrow more funds that gives positive impact on NFO. The
drivers of change in net financial obligation are-

Year
NFO t

2010
(75,078)

NFO t= NFE- (C-I) + d

2011
2012
(253,130)

32

(669,563)

2013
(853,380)

NFO
2010
2011
(75,078)
(100,000)
(200,000)
(300,000)

2012

2013

(253,130)

NFO

(400,000)
(500,000)
(600,000)
(669,563)

(700,000)
(800,000)

Since GSK financial asset was getting greater than their obligation over the past five years so
their net changing is decreasing and paid off obligation gradually, and decrease free cash flow
leads to decline in change in net financial obligation.

* 2015 data are needed to find out 2014 net changes which are still unavailable.

Net Financial Asset, NFA: It is the difference between the financial asset and financial
obligation.
NFA=FA-FO
Year

2010

2011

2012

2013

2014

NFA

660,582

735,660

988,790

1,658,353

2,511,733

33

NFA
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
660,582
400,000
200,000
2010

1,658,353
NFA

988,790
735,660

2011

2012

2013

Firm was continuously investing in

financial asset by liquidating their operating asset over the past five years..Either they reduced
their financial obligation or investing more into financial asset.

Change in net financial asset, NFA: The pattern of investing in financial asset over their
business period. NFA can be determined through net financial income, free cash flow and
dividend. If there is positive net financial income from financial asset increase the financial asset,
free cash flow is invested in the financial asset leads to increase NFA, and to pay dividends
decrease the financial asset because by liquidating financial asset firm pay their dividends to
their shareholder. The equation of NFA determinates isNFA t=NFI t+(C-I)t-d t
Year

2010

2011

2012

2013

Change in NFA

75,078

253,130

669,563

853,380

34

NFA
800,000
700,000
669,563

600,000
500,000

NFA

400,000
300,000
200,000
100,000
-

75,078
2010

253,130

2011

2012

2013

Since GSK's investment in financial

asset was increasing by liquidating their operating asset at that leads to increase financial income
2010 to 2013 so there net changes shows upward trend.

Common Stock Equity: It is just difference between the net operating asset and net financial
obligation.
CSEt=NOAt - NFOt
Year
2010
Common stock Equity, 2,149,466
CSE

2011
2,302,928

35

2012
2,553,21
2

2013
3,586,217

2014
4,934,861

CSE
4,000,000

3,586,217

3,500,000
3,000,000
2,500,000 2,149,466 2,302,928
2,000,000

2,553,212
CSE

1,500,000
1,000,000
500,000
-

2010

2011

2012

2013

Common stock equity of GSK was increasing over the past five years because of their net
operating asset was increasing over net financial obligation and financial obligation was
decreasing simultaneously that leads to upward slope in the bar graph.

Changes in common stock Equity, CSE : It states that how much common stock equity
changes over past few years. There are three determinants that have impact on changing common
stock equity. If firm's operating income increases after paying firm expenses owner's equity
increases as well. And paying dividends reduce the common stock equity. The drivers of CSE
can be expresses asCSE=OI t-NFE t-d t
Year
2010
2011
2012
2013
Change
Common
stock 153,462
250,284
1,033,00 1,348,644
5
Equity, CSE

36

CSE
1,500,000

1,348,644
1,033,005

1,000,000
500,000
153,462

CSE

250,284

2010

2011

2012

2013

2014

GSK operating income was increasing last five years and reducing their financial expense due to
reduced finance obligation that showed increase in common stock equity.

Return on net operating asset: How much a firm is able to generate it's income by utilizing per
dollar operating activities. It denoted as RNOA. The formula isRNOA t=OI t/((NOAt+NOAt-1)/2)
Year
RNOA

2010

2011

2012

2013

2014

28.66%

15.29%

12.06%

24.44%

32.50%

RNOA
35.00%

32.50%

30.00% 28.66%
24.44%

25.00%

RNOA

20.00%

15.29%

15.00%

12.06%

10.00%
5.00%
0.00%

2010

2011

2012

2013

2014

GSK was able to earn profitable operating income from their operations from 2010 to 2014 but
in year 2011 and 2012 it was slightly down. That means the firm was able to generate profit from
37

their operating activities .GSK was able to generate larger amount of profit from their operation
compare to their net operating asset.

Return on financial asset: How much a firm is able to generate profit from per tk financing
investments, denoted as RNFA. The formula is-

Year
RNFA

2010

RNFA t=NFI t/(NFAt+NFAt-1)/2)

2011
2012
2013

2014

3.55%

6.93%

5.74%

6.40%

9.03%

RNFA
10.00%
9.00%
9.03%
8.00%
7.00%
6.93%
6.00%
6.40%
5.74%
5.00%
4.00%
3.00% 3.55%
2.00%
1.00%
0.00%
2010 2011 2012 2013 2014

RNFA

GSK was able to generate a good

profit from their financing activities in last consecutive year and their trend is upward. It
occurred because of their financial income was greater compare their investment in financial
asset. GSK's investment in financial asset was also increasing that leads to increasing financial
income and gave growing return from net financial asset.

Net borrowing cost: How much a firm incurred expenses on per dollar borrowing fund. High
net borrowing cost will reduce the profitability of firm. It calculated as-

Year
NBC

NBC t= NFE t /(NFOt+NFOt-1)/2)

2011
2012
2013

2010
2.63%

5.15%

4.75%

38

2014
6.71%

4.27%

NBC
8.00%
7.00%
6.71%
6.00%
5.00%
5.15%
4.75%
4.00%
4.27%
3.00%
2.00% 2.63%
1.00%
0.00%
2010
2011
2012
2013
2014

NBC

GSK had incurred a little amount

financial expenses over their borrowing fund but in 2011 and 2013 firm's financial expenses was
increasing at the lower rate. That indicates that either the bank interest rate was increased or
borrowing fund from somewhere else was costly.Net financial expenses compared to the net
financial obligation was almost steady that leads to average borrowing cost.

The Analysis of Profitability

Profitability analysis becomes a tool for management planning, strategy analysis, and decision
making, as well as valuation. Profitability analysis establishes where the firm is now. It discovers
what drives current ROCE , and sometimes referred to as value drivers. It is recognized that
generating higher profitability generates value.
Distinguishing Financing and operating activities and the effect of leverage
ROCE : is a profitability ratio that measures how efficiently a company can generate profits
from its capital employed by comparing net operating profit to capital employed.
ROCE = RNOA + FLEV * (RNOA - NBC)
Return on operating asset

Financial leverage

Operating spread

Financial Leverage : It is the degree to which net operating assets are financed by borrowing
with net financial obligation or by common equity.
FLEV = NFO/ CSE
Year

2010

2011

2012

2013

2014

FLEV

-31%

-32%

-39%

-46%

-51%

39

FLEV
0%
2010
-10%

2011

2012

2013

2014

-20%
-30% -31%

FLEV
-32%
-39%

-40%

-46%

-50%

-51%

-60%

Here the graph shows that GSK

negative financial leverage, it happened because GSK has more net financial asset than financial
obligation.

Operating spread : It is the difference between the return on net operating assets and the net
borrowing cost .
Spread = RNOA - NBC
Year
Spread

2010
26.03%

2011

2012

10.14%

2013
7.30%

40

2014
17.73%

28.23%

Spread
30.00%

28.23%

25.00% 26.03%
20.00%
15.00%
10.00%

10.14%
7.30%

5.00%
0.00%
2010

Spread

17.73%

2011

2012

2013

2014

From above graph it says that

GSK has favorable financial leverage throughout the five years. In 2010 and 2011 the spread was
declining due to increasing in net borrowing cost that results low spread .

Return on net operating asset: How much a firm is able to generate it's income by utilizing per
dollar operating activities. It denoted as RNOA
RNOA= OI / NOA
Year
RNOA

2010
28.66%

2011

2012

15.29%

2013
12.06%

41

2014
24.44%

32.50%

RNOA
35.00%

32.50%

30.00% 28.66%
24.44%

25.00%

RNOA

20.00%

15.29%
12.06%

15.00%
10.00%
5.00%
0.00%

2010

2011

2012

2013

2014

Since the spread is positive and GSK

has financial leverage ROCE is levered up over the return from operations.GSK could earn more
on equity because those net operating assets are financed by net debt.

But here I have used the following formula because it is found that NFA is greater than NFO, in
this case, financial income is greater than the financial expense and the GSK has a positive return

on financing activities rather than borrowing costs.

ROCE = RNOA - FLEV * (RNOA - RNFA)
here FLEV= NFA /CSE
Year
FLEV

2010
30.73%

2011

2012

31.94%

2013
38.73%

42

2014
46.24%

50.90%

FLEV
60.00%
50.00%
40.00%
30.00%

50.90%

46.24%

FLEV

38.73%
30.73% 31.94%

20.00%
10.00%
0.00%

2010

2011

2012

2013

2014

If firm has financial leverage

,then the difference between ROCE and RNOA is determined by the amount of leverage. From
above chart it can clearly say that GSK has financial leverage and helps to generate a higher
return for shareholders which is geared up the profitability.

And the spread is, RNOA - RNFA

Year

2010

Spread

2011

25.11%

2012
8.36%

2013
5.65%

2014
15.40%

26.75%

Spread
30.00%
25.00%
20.00%

26.75%

25.11%

spread

15.00%

15.40%

10.00%
8.36%

5.00%
0.00%

2010

2011

5.65%
2012

2013

2014

Here the graph is showing five years' spread is positive. And it is because GSK's operating asset
earn more than its financial asset. The positive spread reduces the ROCE.

43

Finally,
ROCE = RNOA - FLEV * (RNOA - RNFA)
Year

2010

ROCE

2011
19%

2012
12%

2013
10%

2014
16%

17%

ROCE
25.00%
20.00% 20.94%
17.31%

18.88%

15.00%

ROCE

12.62%
10.00%

9.87%

5.00%
0.00%
2010

2011

2012

2013

2014

ROCE of GSK was fluctuating over the five years. The RNOA is levered up to yield a higher
ROCE, but positive spread is effect the leverage unfavorably. And GSK was unable to earn more
on financial asset compared to operating asset.

Operating Leverage
As financial obligation can lever up the ROCE, operating leverage can also lever p the return on
net operating assts. Operating liabilities are obligation incurred in the curse of operations and are
distinct from financial obligations incurred to finance the operations.
RNOA = ROOA + ( OLLEV * OLSPREAD)
Here, OLLEV = OL / NOA
Year

2010

2011

2012

44

2013

2014

OLLEV

47%

66%

92%

105%

106%

OLLEV
120%
100%

105%
92%

80%

OLLEV

60%
40%

106%

66%
47%

20%
0%

2010

2011

2012

2013

2014

Here five years positive operating

liability leverage would contribute ROCE, operating spread is also favorable. Upward slope
indicates that GSK was able to increase operating liabilities by getting credit in its operations, so
it reduces its investment in net operating assets and levers its RNOA. The operating liability
leverage produce residual income from operations that greater than income from operations.

Return on operating asset, ROOA: It states that how much a company earn on their operating
asset.
OI + Implicit interest (after tax)
ROOA=
Operating asset
Year
ROOA

2010

2011
22%

2012
14%

2013
12%

45

2014
17%

20%

ROOA
25%
20%

22%

15%

20%
17%
14%

ROOA

12%

10%
5%
0%
2010

2011

2012

2013

2014

Here the GSK's ROOA was fluctuating over the five years. It occurred might be the interest
would be an additional expense. But to stay competitive, the supplier would have to reduce
prices of goods sold to GSK by a corresponding amount so that the total price charged remain
same.

Operating Liability Leverage Spread, OLSPREAD: It is the spread of the return on operating
assets over the after tax short term borrowing rate.
OLSPREAD= ROOA - Short term borrowing rate (after-tax)
Year
OLSPREA
D

2010
10.02%

2011

2012
1.97%

2013
0.22%

46

2014
5.12%

8.68%

OLSPREAD
12.00%
10.00%

10.02%

8.00%

8.68%

OLSPREAD

6.00%
5.12%

4.00%
2.00%
0.00%

1.97%
2010

2011 0.22%
2012 2013

2014

GSK has positive operating

liability spread that indicates that with favorable leverage it would contribute to the RNOA that
helped to lever up the ROCE. But in 2011 and 2012 it abruptly fell down because in 2010
OLLEV went down and return from the operating asset was little in 2011 and 2012.

Finally, RNOA = ROOA + ( OLLEV * OLSPREAD)

Year

2010

RNOA

2011
26%

2012
15%

2013
12%

2014
22%

29%

RNOA
35%
30%
25%

29%

26%

20%

RNOA

22%

15%

15%

10%

12%

5%
0%

2010

2011

2012

2013

2014

In last five years, GSK's return on net operating assets showing favorable operating liability
leverage though it's fluctuating from year to year. In 2012 it was least because in that year their

47

operating liability leverage spread was low and short term borrowing rate was bit higher from
other years.

Chapter - 7
Recommendation
& Conclusion

48

Recommendation
As a global leader GSK company is committed to improving the quality service of Secretarial
Department. The Recommendation which GSK Company need to take immediately is given
bellow:
Proper File list:
Secretarial Department needs to reorganize the perfect File list as hard and soft copy.
Recruit another employee:
To reduce the pressure and difficulties face in doing the works Secretarial Department should
recruit an employee.
Strong Policy:
Secretarial as well as the Company should have strong and strict policy to overcome the cheating
in bills and claims. In addition if there is a strong and strict policy employee never think to have
fake bills due to show cause issue.
Strong and active IT Department:
Secretarial Department should focus and give emphasize for having a strong Information
Technology Department to support them properly as it is their day to day concern.
Recruitment of Contractual Doctor:
In a particular time of the month Secretarial Department can recruit part time as well as
contractual Doctor to avoid the unlawful circumstances.
Training in Communication:
To reduce the communication gap each and every employee should have a proper training of
Communication skills. It will help to run the Secretarial Department effectively.
Proper Instruction:
To avoid the internal clash among the Secretarial and other Department Company needs to
reorganize firm and appropriate instruction in the long run.

49

Conclusion
With an enviable image and reputation for the past 6 decades GlaxoSmithKline (GSK)
Bangladesh Limited running its operation as a subsidiary of GlaxoSmithKline is one of the
worlds leading research-based pharmaceutical and healthcare companies. GlaxoSmithKline
Bangladesh Limited is the largest and leading company in the pharmaceuticals industry for more
than four decades by manufacturing quality product. It diversified in different area and sector of
the local business field. The Company always concerns with the quality of the product or
medicine for the customer and also increases the profit for its shareholder and stockholder and
also the employees. They have a challenging and inspiring mission to improve the quality of
human life by enabling people to do more, feel better and live longer.
This report helps us to more efficient and more active to gather practical knowledge in efficient
for practical life. Secretarial Department is very important for any Multinational Company. They
deal with lots of privacy and secrecy which is very confidential for individual employee as well
as the Department. It is very important to have better access of the information among the liable
people in the long run. They always maintain the policy provided by the Company which helps
to make an efficient productivity of the employees as well as helps the organization further to
achieve its long-term goal. Thats why GSK has a worldwide better dependable corporate image.

50

References
1
2
3
4
5
6

http://www.gsk.com.bd
reports-Annual url-16
reports-Annual url-30
reports-Annual url-36
www.GSK Annual report 2015
Securities and Exchange Rules-1987
7 Hand Book for Company Secretary- By A.K.A Muqtadir
8 Manual of Secretarial Practice-By B.N. Tandon
9 Annual Report of GlaxoSmithKline.
10 Internal source of GlaxoSmithKline.

Appendix
8

Year
net asset
net non current asset:
net tangible fixed asset

2010

2011

2012

2013

368,
102

480,6
62

497,8
30

36
8,102

480,
662

64,9
39
562,
769

536,8
61
5,4
67
4
4,046
58
6,374

695,
231
462,
904
666,
043
1,82
4,178
2,192
,280

1,138,8
44
211,3
64
770,5
84
2,120,
792
2,601,4
54

1,059,5
44
421,4
71
1,019,4
34
2,500,
449
3,063,2
18

1,224,4
92
506,0
60
1,680,6
99
3,4
11,251
3,99
7,625

868,
079
1,044,
908
2,537,
032
4,450
,019
5,028
,322

632,
879
69,
219
1,
298
70

995,0
94
32,4
69
6,6
23
1,034,

1,369,4
68
56,6
54
7,7
35
1,433,

1,94
9,378
62,
211

2,337,
516
225,
681
9,
910
2,573

intangible asset
other receivables
total non current asset
current asset
inventory
trade and other
receivables
cash and cash equivalents
total current asset
Total asset
current liabilities and
provisions
trade and other payables
current tax liability
obligation under financial
lease
total current liabilities

8,659
2,0

2014

546,216
4,374
27,
713
578
,303

net current asset

3,396
1,12
0,782

186
1,086,
606

857
1,066,
592

20,248
1,3
91,003

,107
1,876
,912

24,
074
80,
020
3,
639
10
7,733

35,9
01
82,1
39
26,9
38
144,
978

38,5
12
83,8
74
21,4
15
143,
801

3
2,039
8
1,469
1
2,757
12
6,265

46,
612
77,
241
14,
865
138
,718

non current liabilities

deferred tax liability
retirement benefit
obligations
obligation under financial
lease
total non current
liabilities'
Total liabilities
shareholder equity

811,129

revaluation reserve

120,
465
1,196,
041
5,
000
59,
479

capital reserve
total shareholder
equity
total capital and
liabilities
net asset value

166
1,38
1,151
2,192
,280
1,48

share capital
retained earning
general reserve

10

1,179,164
120,4
65
1,237,1
80
5,0
00
59,4
79
1
66
1,422,
290
2,601,4
54
1,567,

1,577,658
120,4
65
1,300,450
5,0
00
59,4
79
1
66
1,485,
560
3,063,2
18
1,629,

2,146,5
13
12
0,465
1,66
6,002

2,711,825

5,000
5
9,479

120,
465
2,131,
387
5,
000
59,
479

166
1,8
51,112
3,99
7,625
1,9

166
2,316
,497
5,028
,322
2,455

8,884
2,192,
280
703,
396
1,488,
884
78
,384
4,
937
665,
519
(660,
582)
(75,
078)
660,
582
75,
078

OA
OL
NOA
NOA
FO
FA
NFO
NFO
NFA
NFA
Operating Income
after tax OI
Finance income

268

361

2,601,4
54
1,034,1
86
1,567,26
8
(2,8
46)
33,5
61
769,2
21
(735,66
0)
(253,13
0)
735,6
60
253,1
30

393014 233,664

77,377

2,998,2
79
1,433,8
57
1,564,42
2
363,4
42
29,1
50
1,017,9
40
(988,79
0)
(669,56
3)
988,7
90
669,5
63

,215

3,94
8,112
2,02
0,248
1,927
,864
49
5,264
2
1,416
1,67
9,769
(1,658
,353)
(853
,380)
1,65
8,353
85
3,380

4,996,
235
2,573,
107
2,423,
128
(2,423
,128)
24,
775
2,536,
508
(2,511,
733)
2,511,
733
2,511,
733
(2,511,
733)

188,775

426,690

707,005

term deposit

11,996

50,502

60,021

123,361

122,383

special note deposit

housing loan to
employees

5,849

1,296

37

43

49

138

365

283

420

433

total finance income

17,983

52,163

60,341

123,824

122,865

11

Finance expense
bank over draft

12

99

157

148

49

leasing

808

3,660

4,992

4,117

3,043

total finance expense

820

4,265

3,092

NFI
Net Financial Expense
After Tax NFE
C-I
d
CSE
CSE
average of 2 years NOA

RNOA
average of 2 years NFA
RNFA

average of 2 years NFO

NBC
FLEV
ROCE
Short term borrowing
rate after tax
Implcit interest

3,759
17,
163

5,149
48,4
04

55,1
92

11
9,559

119,
773

(12,744)
(35,940)
(40,980)
(88,773)
(88,931)
353,
278,2
(124,46
(7
3,196,
273
42
5)
,979)
562
295,
73,5
(738,83 (741,800
5,828,
358
16
6)
)
068
2,149,
2,302,9
2,553,2
3,58
4,934,
466
28
12
6,217
861
153,
250,2
1,033,0
1,34
(4,934,
462
84
05
8,644
861)
1,37
1,413
28.66%

1,528,
076
15.29%

1,565,
845
12.06%

484,136.00
3.55%
(4
84,136)
2.63%
30.73%
20.94%

698,121.00
6.93%
(698,
121)
5.15%
31.94%
12.62%

11.64%

11.64%

12

862,225.00
6.40%
(862,
225)
4.75%
38.73%
9.87%

1,
746,143
24.44%
1,323,571
.50
9.03%
(1,3
23,572)
6.71%
46.24%
17.31%

2,1
75,496
32.50%
2,085,043.0
0
5.74%
(2,08
5,043)
4.27%
50.90%
18.88%

11.64%

11.64%

11.27%

81,892

ROOA
OLLEV
RNOA
ROCE
ROCE
Sales

120,404

22%
0.47243170
1
26%
20.94%
19%
3632905

166,935
14%

12%

0.659865447
15%
12.62%
12%
4735121

0.916541061
12%
9.87%
10%
5,553,812

235,205
290,019
17%
20%
1.047920
1.061894
393
791
22%
29%
17.31%
18.88%
16%
17%
6,774,872 7,187,225

ATO

2.44

CSE
Spread
FLEV
spread
OLLEV
OLSPREAD

(4,934,86
153,462
250,284
1,033,005
1,348,644 1)
26.03%
10.14%
7.30%
17.73%
28.23%
-31%
-32%
-39%
-46%
-51%
25.11%
8.36%
5.65%
15.40%
26.75%
47%
66%
92%
105%
106%
10.02%
1.97%
0.22%
5.12%
8.68%

3.02

13

3.55

3.51

2.97