Pharmaceutical Products Distribution Company

This project covered financial reporting, taxation, and financial analysis for a pharmaceutical products distribution business dealing with high-volume inventory, multiple suppliers, and regulated sales operations. The work focused on delivering accurate financial statements while providing clarity on inventory performance, cash flow, and profitability.

• Assets:
  • Current Assets: Cash and bank balances, trade receivables, advances to suppliers, pharmaceutical inventory categorized by product groups.
  • Non-Current Assets: Office equipment, IT systems, delivery vehicles, and warehouse assets.
• Liabilities:
  • Current Liabilities: Trade payables, accrued expenses, short-term financing, tax liabilities.
  • Non-Current Liabilities: Long-term borrowings and deferred tax balances.
• Equity:
  • Share capital and accumulated retained earnings.

Purpose:
Presented a structured view of the distributor’s financial strength, liquidity, and working capital position, particularly in relation to inventory and receivables.

• Revenue:
  • Sales of pharmaceutical products across multiple distribution channels.
• Cost of Sales:
  • Purchase cost of medicines, freight, warehousing, and handling expenses.
• Operating Expenses:
  • Distribution costs, staff salaries, logistics, administrative expenses, and depreciation.
• Net Profit:
  • Profit before and after tax for the reporting period.

Purpose:
Measured gross margins and operating efficiency, highlighting cost drivers impacting profitability.

• Operating Activities:
  • Cash receipts from customers and payments to suppliers and service providers.
• Investing Activities:
  • Acquisition of vehicles, warehouse equipment, and IT infrastructure.
• Financing Activities:
  • Loan proceeds, repayments, and interest payments.

Purpose:
Analyzed cash movement patterns, ensuring sufficient liquidity to maintain uninterrupted supply operations.

• Reflected movements in retained earnings driven by operating results.
• Captured equity changes resulting from profit allocation and capital adjustments.

Purpose:
Provided transparency on how operational performance translated into equity growth over time.

• Calculation and filing of corporate income tax.
• Compliance with applicable sales tax / VAT, withholding taxes, and payroll obligations.
• Preparation and submission of statutory tax returns and supporting schedules.

Purpose:
Maintained regulatory compliance while ensuring accurate tax reporting aligned with financial records.

• Inventory Analysis:
  • Reviewed inventory levels, turnover ratios, and slow-moving items.
• Margin Analysis:
  • Evaluated product-wise and channel-wise profitability.
• Receivables Analysis:
  • Assessed customer payment patterns and credit exposure.
• Working Capital Review:
  • Analyzed the balance between inventory, receivables, and payables.

• Identified inventory holding risks affecting cash flow.
• Highlighted margin variations across product categories.
• Provided guidance on aligning supplier payment terms with customer collections.
• Supported decision-making on inventory replenishment and pricing strategies.

• Clear and reliable financial statements for management review.
• Improved visibility into inventory performance and cash flow.
• Strengthened financial control across distribution operations.
• Structured financial data supporting operational and strategic decisions.

• Accounting software and Excel-based financial models.
• Customized reports for inventory and margin analysis.
• Periodic financial summaries for management review.