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of the selected pharmaceuticals were not satisfactory. The inefficiency of financial management may be a major cause for such a poor position of the state of affairs. By applying Prof. Altmans MDA model it is seen that the overall financial position of the sample pharmaceuticals was at the lower level of bankruptcy except only one pharmaceuticals (BEACONPHAR). The main reasons attributed to such a situation were reported to be poor market demands, scarcity of raw materials, high competition, vanished quota system, management in attention, lack of realistic goals, strict government regulations, political instability, increased price of raw materials and others adverse environmental factors etc. In order to save the pharmaceuticals from total bankruptcy the financial performance of the sample pharmaceuticals should be improved as early as possible. The followings are the recommendations: i. The financial management specially purchase, sales and inventory management have to be motivated, so that they act all the tasks cordially, efficiently and honestly. ii. The Pharmaceuticals should regularly make use of ratio analysis and measure should be taken to improve undesirable ratios at least as to the point of industrys average. iii. Qualified, trained and experienced management personnel should be appointed. iv. Government regulations should be flexible and policy should be realistic. v. Operational efficiency should be increased by reducing cost and wastage and improving operating and management performance. Supply of working capital should be adequate. vi. Liquidity position of the selected Pharmaceuticals should be improved by reducing current liabilities. vii. A reasonable credit policy should be implemented, so that the main portion of profit does not spend in payment of fixed charges. viii. Accountability and motivation for achievement of performance should be fixed up.