DIRECTORS' REVIEW FOR
THE QUARTER ENDED SEPTEMBER 30, 2005

We are pleased to present your Company’s individual and consolidated Financial Statements for the Quarter ended September 30, 2005. The consolidated Financial Statements present the combined financial results of the Company’s pharmaceutical Manufacturing operations and its retail Famacia Division, which was separated as a legal entity under permission of the Shareholders on May 26, 2003. Your Company’s Net Sales improved by 25.79% during the Quarter under review, from Rs. 146.643 million in the first Quarter of last year to Rs. 184.458 million during Q1 of the current year. We are glad to report that after a successful restructuring, your Company’s Farmacia Operations reported a handsome increase in both sales and profitability. Consolidated Net Sales of your Company inclusive of Farmacia increased by 25.54% to Rs. 207.153 million, compared to Rs. 165.013 million achieved during the first Quarter of last year. At the same time, your Company’s share in the profit of Farmacia improved by 183% for the Quarter to Rs. 1,793 million, from Rs. 0.635 million during the same period last year. Gross Profit of your Company increased to Rs. 112.364 million, an improvement of 26.03% from the Gross Profit of Rs. 89.160 million achieved during the same quarter last year. Administrative Expenses increased to Rs. 9.060 million during the Quarter (an increase of 9.96%), whereas Selling and Distribution Expenses increased by 16.31% to Rs. 36.717 million for the Quarter. Financial expenses increased from Rs. 0.284 million to Rs. 0.553 million during the same period, owing to increased payment of lease rental. After a provision for taxation and other government levies of Rs. 26.923 million, the Net Profit of your Company for the Quarter under review stands at Rs. 42.645 million, an increase of 35.10% over the figure of Rs. 31.567 million for the corresponding period of last year. The Quarterly Earnings per share (EPS) of your Company on its increased Paid-up capital (after issue of 30% bonus shares for the year ended June 30, 2005) stand at Rs. 4.24, compared to Rs. 3.14 achieved during the First Quarter of last year. We are optimistic that the performance of your Company will Inshallah improve further during the coming quarters. For and on behalf of the Board of Directors

(Mrs. Akhter Khalid Waheed)
Chairperson & Chief Executive

October 24, 2005

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