KDM pharma - Raison d'tre

All the data is from the previous annual report books.

Our operating profit before tax has continued to drop although our sales have stabilized.

Profit v sales
$300,000

3500000

$250,000

3000000

$251,022
$181,117

$200,000

$180,340

P $150,000
B
T $100,000
$50,000
$-

$(2,419)
2008
2009

2500000

S
2000000 a
l
1500000 e
$81,691
s
1000000
500000

2010

2011

2012

$(50,000)

0
Sales

PBT

The Gross profit ratio is reflective of the industrial standard; unfortunately the operating profit ratio is
not encouraging.

Performance ratios
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2009

2010
Gross Profit ratio

2011
Operating Profit ratio

2012

Inventory turnover:
The total sales divided by inventory or closing stock measures the efficiency in inventory management.
The ideal will be the Just In Time concept pioneered by Toyota.

Inventry turnover
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2009

2010

2011

2012

Inventry turnover

As can be seen, our efficiency is far from perfect; the business probably need more time to adjust. The
advantage or being a medical practitioner should enable us to forecast our drug need better.
Receivables or trade debtors are currently of great concern. The amount is staggering for the amount of
sales

Receivables
$1,000,000

60%

$900,000

54%

$800,000

45%

$700,000
receivables

50%
40%

$600,000
$500,000
$400,000
$300,000

30%
24%

21%

20%

$200,000

10%

$100,000
$-

0%
2009

2010
receivables

2011
Receivables/sales

2012

Solvency
In 2010 the debts increased and the receivables escalated, thus straining the ability to pay, RM 1 million
has been injected to revive it.

Solvency
$900,000
c
r
e
d
i
t
o
r
s

250.0%

$800,000

q
u
200.0%
i
c
150.0% k

RM1mil injected

$700,000
$600,000
$500,000
$400,000

100.0% r
a
50.0% t
i
o
0.0%

$300,000
$200,000
$100,000
$2009

2010
creditors

2011

2012

Quick ratio

There is the mismatch of liabilities and assets without the loan.

Liabilites/Asset
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2009

2010
without loan

2011
with loan

2012

The Returns on asset after tax is a meager 3.1% last year, after dividend assistance was removed.

ROA after tax

25.0%
22.4%
20.0%
15.0%
11.0%

10.0%

7.0%
5.0%
3.1%
0.0%
2009

2010

2011

2012

ROA after tax

There is little doubts as to its raison d'tre( reason to exist). With the increased in management
fees from 5% to 6% this year the operating profit will be further eroded.

Appendices:

PL

2008
Turnover
Gross Profit
PBT
Sales
Opening Stock
Closing stock
Cost of goods sold
Expenses
other income

$ (2,419)
0
$ 47,645
$ (6,771)
$ 4,352

$
$
$
$
$
$
$
$
$

2009
2,028,189
327,875
251,022
1,932,657
47,645
433,840
1,604,781
(104,992)
30,558

$
$
$
$
$
$
$
$
$

2010
3,040,511
346,481
181,117
2,943,346
433,840
399,522
2,596,865
(210,412)
45,048

$
$
$
$
$
$
$
$
$

2011
1,652,417
222,106
180,340
1,606,862
399,522
532,492
1,384,756
(145,679)
31,914

$
$
$
$
$
$
$
$
$

2012
1,932,748
261,244
81,691
1,892,354
532,492
370,983
1,631,110
(200,578)
21,026

BS
liability

assets

capital/loan
profit b/f
current profit
creditors

$
$
$

(2,419)
251,022
121,824

$
$
$

248,603
181,117
802,763

$ 1,000,000
$ 429,720
$ 180,340
$ 383,842

total

370,427

$ 1,232,483

$ 1,993,902

$ 2,074,809

cash-bank
receivables
closing inventory

$
$
$

9,612
397,658
433,840

$
$
$

$
$
$

$
$
$

total

841,111

$ 1,232,645

The Madviruz
20th May 2013

$ 47,645

117,991
715,132
399,522

522,492
867,172
532,492

$ 1,922,156

$ 1,000,000
$ 610,060
$
81,691
$ 383,058

788,711
843,766
370,983

$ 2,003,460