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GSK Annual Report 2010

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GSK Annual Report 2010 GlaxoSmithKline Pakistan Limited Ten Years of Success Ten years is an achievement, but for us it is a celebration of touching the lives of millions of people across Pakistan. Being one of the world’s leading research healthcare companies, we devote all our resources and efforts towards creating truly innovative medicines, and delivering products of value. This year’s Annual Report celebrates our journey and our continued resolve to make a meaningful difference in people’s lives. We look forward to many more years of success together, helping the world do more, feel better and live longer. Contents 02 Corporate Information 04 Vision and Mission 06 Ethical Conduct 08 Values and Behaviours 10 History of GlaxoSmithKline 11 Milestones 14 Strategic Priorities 16 GSK Products 20 Corporate Social Responsibility at GSK 26 Awards 28 Great People Power 31 Directors’ Profiles 33 Board & Management Committees 34 Directors’ Report to Shareholders 38 Chairman / Chief Executive’s Review 41 Financial Performance at a Glance 42 Statement of Value Added 43 Key Operating & Financial Data 45 Vertical Analysis 46 Horizontal Analysis 48 Financial Statements 2010 49 Statement of Compliance with the Code of Corporate Governance 51 Review Report to the Members on Statement of Compliance with Best Practices of Code of Corporate Governance 52 Auditors’ Report to the Members 53 Balance Sheet 55 Profit and Loss Account 56 Cash Flow Statement 57 Statement of Changes in Equity 58 Notes to and forming part of the Financial Statements 90 Pattern of Shareholding 91 Categories of Shareholders 92 Shareholding Information 93 Notice of Annual General Meeting 95 Factories and Distribution / Sales Offices 96 Proxy Form Corporate Information Board of Directors Management Committee Mr. M. Salman Burney Mr. M. Salman Burney Chairman / Chief Executive Chairman / Chief Executive Mr. Rafique Dawood Dr. Muzaffar Iqbal Non-Executive Director Technical Director Mr. Shahid Mustafa Qureshi Mr. Husain Lawai Legal, Corporate Affairs, Industrial Non-Executive Director Bankers Relations, Administration & Citibank NA Regulatory Affairs Director / Dr. Iffat Yazdani Standard Chartered Bank (Pakistan) Company Secretary Area Director Asia Pacific Clinical Limited Operations Mr. Javed Ahmedjee HSBC Bank Middle East Limited Director Finance and Logistics Habib Bank Limited Dr. Muzaffar Iqbal Faysal Bank Limited Technical Director Ms. Erum S. Rahim Director Marketing and Business Auditors Mr. Shahid Mustafa Qureshi Development Legal, Corporate Affairs, Industrial A. F. Ferguson & Co. Relations, Administration & Mr. Maqbool ur Rehman Chartered Accountants Regulatory Affairs Director / Sales Director Company Secretary Legal Advisors Mr. Sohail Matin Rizvi, Isa, Afridi & Angell Country Manager - Consumer Mr. Javed Ahmedjee Mandviwalla & Zafar Healthcare Director Finance and Logistics Orr, Dignam & Co. Dr. Atif Mirza Surridge & Beecheno Audit Committee Director Medical Services Vellani & Vellani Mr. Rafique Dawood Ms. Fariha Salauddin Registered Office Chairman Director Human Resources 35 - Dockyard Road, West Wharf, Karachi - 74000. Mr. Husain Lawai Company Secretary Tel: 92-21-111-475-725 Member Mr. Shahid Mustafa Qureshi (111-GSK-PAK) Mr. M. Salman Burney Chief Financial Officer Fax: 92 21 32314898, 32311122 Member Mr. Javed Ahmedjee Website: www.gsk.com.pk 02 GlaxoSmithKline Pakistan Limited Vision GlaxoSmithKline’s vision has translated into a decade of excellence and achievement: “the opportunity to make a difference to the lives of billions of people” Our value system and operating principles provide the necessary professional and ethical guidelines on how we work at GlaxoSmithKline. The key to our success is our desire and passion to pursue our vision of creating a healthier world. We feel honored by the fact that the work we do enhances the quality of people’s lives, and take pride in our commitment to help patients and communities overcome challenges. Every member of the GSK family strives to contribute his/her time, talents, and ideas to make a real and meaningful contribution towards improving the quality of human life. GSK is driven by performance, but we strongly believe that there is no achievement without integrity. We contribute to the health and well being of people with enthusiasm and vigour. Each year we set the bar higher and aim further in the quest of outperforming ourselves, and we look forward to another decade worth celebrating. Mission GlaxoSmithKline has a challenging and inspiring mission: to advance the quality of human lives by enabling people to This mission is at the heart of everything that we do. Our legacy of great science, development of innovative health care solutions and a history of medical breakthroughs help people live healthier and fulfilled lives around the world, every single day. 04 Our Ethical Compass Always Points to Fair Practices We are committed to creating a strong ethical culture at GSK. Putting patients first is the core principle of being an ethical pharmaceutical company. Profit without principle is short lived. Our Code of Conduct sets out the fundamental standards to be followed by staff in their every day actions on behalf of GSK, and seeks to promote honest and ethical conduct. Our employees are committed to: Conduct business with honesty, integrity, and in a Where permitted by local laws, promptly report to the professional manner that protects the company’s good company any breach of laws or regulations, ethical public image and reputation. principles or company policies that come to attention and cooperate fully in any audit, enquiry, review or Build relationship with customers, vendors, suppliers investigations by the company. and fellow employees based on trust, and treating each of these individuals with respect and dignity when Provide access to the company’s external auditor at conducting business. all times to the company’s records and accounts (in whatever form they are held) and provide additional Become familiar with, and comply with legal information as requested by the external auditor. If such requirements and company policies & procedures. requested information is legally privileged, the legal department must be contacted before responding to Avoid any activity that could involve or lead to the request. involvement in any unlawful practice or harm to GSK’s reputation and image. Managers should ensure all their employees receive guidance, trainings and communication on ethical Avoid actual or potential conflicts of interest with the behavior and legal compliance relevant to their duties company or the appearance thereof, in all transactions. for the company. Provide accurate and reliable information in records Senior management should be the role-model for submitted, safeguard the company’s confidential these standards by visibly demonstrating support and information, and respect the confidential information by regularly encouraging adherence by managers. of other parties with whom GSK does business or competes. Preventing corrupt practices and maintaining standards of documentation. 06 GlaxoSmithKline Pakistan Limited Values GSK Behaviours Respect for people: GSK fosters a dynamic learning culture which We believe that respecting each other is the key to progress thrives on innovation and flexibility. We do this and growth for everyone; our business, employees and so that we can provide the best customer-centric customers. Therefore the culture at GSK celebrates diversity health solutions by adapting to the changing and achieving goals with team work and cooperation. needs of the healthcare market. Therefore, our work is embodied by six behaviours. Patient focused: Our commitment to our purpose of improving the lives Flexible thinking: We explore multiple options of billions ensures that all our efforts, be it research, for problem-solving manufacturing or distribution are geared towards improving patient access to quality health solutions. Enable and drive change: Our ideas are executed to realize benefit for customers and Transparency: business growth We are committed to building and streamlining existing systems to eliminate any possibility of unfair practices. This Continuous improvement: We not only excel in has been possible only because of our employees who are what we do, but find innovative improvements honest and fair in everything they do and take personal to current practices responsibility for all their actions. Customer driven: Our philosophy of improving Integrity: lives of billions of people is at the heart of Our guiding principles go beyond complying with legal everything we do and ethical regulations. Each member of the GSK family takes pride in making decisions which are not only Developing people: Empowered employees profitable but are morally sound, each has the sincere take initiatives and provide creative solutions intent of benefiting the patients, which has helped us to challenges foster long-term relationships. Building relationships: Trust and openness inculcated in everything we do. It helps us to foster long-lasting partnerships 08 History of GSK In 2001, Glaxo Wellcome and SmithKline Beecham merged to form GlaxoSmithKline, one of the largest Pharmaceutical companies in the world. The advent of today’s leading research-based pharmaceutical company started with individual entrepreneurs of the 1800s. Their pioneering efforts laid the groundwork for growth in the different companies that, over the years, were to lead to today’s GlaxoSmithKline. We are exceptionally proud of how far
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