ANNUAL REPORT - 2008

STATE PHARMACEUTICALS MANUFACTURING

CORPORATION OF SRI LANKA
STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008

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STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008

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

• Corporate Information & Significant Accounting Policies 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

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STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008

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 COMMITTEE
Corporations 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 - Administrative Officer
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

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STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008

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.

All products released to the market meet with our in-house specifications (SPMC) in addition to the British Pharmacope-
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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STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008
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 and Audited financial statements comprising the
Balance 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 British
Pharmacopeias (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.
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• 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.
To fulfill the above targets, Hon. Minister managed to get
the 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
The Operating profit recorded during the year 2008 is Rs.
63 Mn.
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STATE PHARMACEUTICALS MANUFACTURING CORPORATION
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It is an increase of 70% compared to previous year.
Net Profit
Net profit before taxation during the year is Rs.120 Mn.
It is the highest Net Profit recorded in history of the
Corporation.
However, the profit after Taxation is Rs.78 Mn.
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 our
responsibility 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
• DEVELOPMENT WORK
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
sufficient for the present market requirement. Therefore,
we were compelled to finalize the plans by utilizing the
existing 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.
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• HUMAN RESOURCES
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
efficient and smooth operation of two shifts. Other than
this, employees are trained through several programmes
conducted by other Institutions. Further Corporation has
provided financial assistance for the employees who are
doing 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.
• STRATEGY AND PROSPECTS
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 &
Nutrition Dr. Athula Kahandaliyanage and other officials
of the Health Ministry.
We also appreciate the contribution made by the officials
of the various Departments of General Treasury.
STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008

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.Hemachandra
Chairman / Managing Director
State Pharmaceuticals Manufacturing Corporation of
Sri Lanka
27th February 2009

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Directors
M A P Hemachandra Professor Mrs Gita Professor R L Jayakody Dr. J M W Jayasundera
Fernando Director Bandara
Chairman / Director (from 30.11.2008) Director
Managing Director (up to 30.11.2008) (up to 30.11.2008)

Mr M A P Hemachandra Professor Gita Fernando Professor R L Jayakody Dr. J M W Jayasundera

is a Chartered Engineer by is the Founder Professor is the Professor of Bandara is a Dental
profession. and the Head of Pharmacology, Faculty of Surgeon by profession and
the Department of Medicine, University of presently holding the post
He holds membership Pharmacology, Faculty Colombo. of Acting Deputy Director
in the Institution of of Medical Sciences, General (Dental Services ).
Production Engineers University of Sri He holds MA, M B B S, M
(M.I.Prod.E) – London and Jayawardenapura. R C P and phD. He obtained his first degree
Member of the Institution Bachelor of Dental Surgery
of Electrical Engineers She holds M B B S, FRCP He also serves as in 1981. Being a Dental
(MIEE) – London. He is a (London) and FCCP. the member of the Surgeon, he obtained his
Fellow of the Institute of Drug Evaluation Sub Master Degree in 1992.
Engineering Diplomates of At present she serves as Committee, Member of
Sri Lanka FIED (SL). the Coordinator of the B. the Cosmetic Devices & He has held the post
Pharm Programme and Drugs Technical Advisory of Principal, School
He is an Ex Chairman of as the Editor of the ‘Sri Committee, Member of for Dental Therapists,
B C C Lanka Limited and Lanka Prescriber’. the Editorial Board of ‘Sri Maharagama, Director,
Ex Chairman & Managing Lanka Prescriber’ and General Hospital,
Director of Colombo Sack She also serves as Member of the Advertising Ratnapura, before he
Makers Limited. He has the Secretary of the Sub Committee. become the Director,
over 40 years experience Drug Evaluation Sub Laboratory services in
(local and abroad) in Committee, Member of He has edited ‘Sri Lanka the Ministry of Health in
Mechanical Engineering, the Cosmetic Devices & Hospitals Formulary - 1998. He has served in
Management and Trading. Drugs Technical Advisory 1994’. the capacity of Director,
Committee and a Member Medical Supplies Division
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

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STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008
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
Legal Officer Dehiwala
Mt. 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.
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P A Upali Ranjith Perera M.Rukmal R Mr. Ranjith Maligaspe
Director Abayawickrama Director
Director
Mr P A U Perera is a Mrs. M R R Mr. Ranjith Maligaspe is
qualified pharmacist and Abeywickrama is currently currently the Chairman
obtained the Pharmacist attached to the Department of State Pharmaceuticals
Certificate and Diploma of Fiscal Policy of the Corporation of Sri Lanka.
in Pharmacy from The Ministry of Finance and
Faculty of Medicine Planning in the Capacity of He holds MBA from Leeds
Colombo in 1981 and 1991 a Deputy Director. University and Diploma in
respectively. Marketing (Sri Lanka).
She joined the Sri Lanka
Mr Perera joined the Planning Service in 1994 He had held the post of
Government Service and worked in the public Secretary to the Ministry
in 1982 and held Posts service to date and held the of Healthcare & Nutrition,
of Chief Pharmacist post of Assistant Director Secretary to the Ministry
and Chief Divisional in Health Planning in the of Shipping & Ports,
Pharmacist in several Department of National Additional Secretary to
Government Hospitals up Planning of the Ministry of the Ministry of Trade
to 2002. Finance & Planning since & Commerce and the
1994 – 2004. Director General of the Tea
From 1998 to 2001 he has Board.
served as a member of She holds MSc in Health
the Board of Directors of Economics and Health
the State Pharmaceuticals Policy (UK), Postgraduate
Corporation (SPC). Diploma in Economic
Development (Colombo),
He has participated LLB(OUSL) and
at several overseas BCom(Hon)(Colombo).
workshops and seminars
on Drug Regulations and Since 1994, she has
Pharmacy Management, accumulated extensive
representing Sri Lanka. experience in health
financing and planning in
Since 1995 he has the General Treasury.
wide experience in
Pharmaceuticals in the
private sector.
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Directors Report
The 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.
• PRINCIPAL ACTIVITIES
The principal activities of the Corporation are,
• the manufacture, processing, stocking, packing & re-packing of drugs
• the provision of technical assistance for the manufacture and processing of drugs.
• Pharmacological & Pharmaceutical research & the standardization of drugs; and
• the marketing of drugs so produced.
There were no significant changes in the nature of the activities of the Corporation during the year.
• REVIEW OF BUSINESS
The state of affairs of the Corporation at 31st December 2008 is set out in the balance sheet on page 114.
An assessment of the corporation during the financial year is given in the Chairman’s Review on pages 101 to 103.
• 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.
• FUTURE DEVELOPMENT
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
The movements in property, plant & equipment during the year are set out in Note 1 to the financial statement
on 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
on page 117 of the financial statement.
• 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’S INTEREST IN CONTRACTS

Directors’ interests in contracts of the Corporation are disclosed in Note 3.2.5. to the Financial Statements on page 120.
• ACCOUNTING POLICIES
The principal accounting policies of the Corporation are set out on pages 118 to 122.

• ENVIRONMENTAL PROTECTION
It is the responsibility of the corporation to operate in a manner that will not have a detrimental effect on the
environment and to provide products of the highest quality that have a beneficial effect for our customers and
the communities within which we operate.

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

• EVENTS AFTER BALANCE SHEET DATE

No events have occurred since the balance sheet date, which would require adjustments to, or disclosure in, the
financial statements.
• GOING CONCERN
The Financial Statements are prepared based on the going concern concept. The Board of Directors are satisfied
that the Corporation has adequate resources to continue its operations in the foreseeable future.

• APPOINTMENT OF AUDITORS
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

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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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STATE PHARMACEUTICALS MANUFACTURING CORPORATION
ANNUAL REPORT 2008

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

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Corporate Governance Report
Corporate Governance is the system by which companies
are directed & controlled by the Management in the best
interest of the stake holders ensuring greater transparency,
better and timely financial reporting.
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.
• MANAGEMENT COMMITTEE
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.
• AUDIT COMMITTEE
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.
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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 Auditor
General.
During the period under review five Audit Committee
meetings were held.
Audit Committee Report is set out in page 108-109.
• INVESTOR’S RELATIONSHIP & PUBLIC
ACCOUNTABILITY
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
same authorities, fulfilling the above responsibility.
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.
• REMUNERATION POLICY
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.
STATE PHARMACEUTICALS MANUFACTURING CORPORATION
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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.
• INTERNAL CONTROL
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 activities
such as Production, Quality Control, Maintenance,
Finance, Planning, Formulation Reserch &
Development & Marketing.
High Quality Generic pahamaceuticals Manufacturer To The Nation
Heads of each department directly report to General
Manager who is the chief operating officer of the
Corporation.
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.
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OUR PRODUCT MIX

Products 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
Famotidine Tab. USP 20mg (Blister) 500 Trifluoperazine Tab. BP 5mg. 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

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