Financial Reporting and Ratio Analysis Beximco Pharmaceuticals Limited

 Executive Summary:

The report is based on “Financial Reporting And Ratio Analysis At Beximco Pharmaceuticals Ltd: A Review of Costing Function”. The purpose of this report is to understand how the financial position, Comprehensive income, Cash flow, liquidity and profitability analysis are used to evaluate the periodic financial success of a firm. Also cost elements of materials are being determined and to identify the factors which affect the costing procedure.

The global pharmaceutical industry as well as the Bangladeshi pharmaceutical industry has moved a long way in the last ten years. We have seen pharmaceuticals market growing to the new heights and realized that the most promising opportunities are to be found with world’s emerging economies. The increasing aged population globally, significant demographic shift, would result in the global pharmaceutical market registering a healthy growth over the next decade.

Pharmaceutical industry is a knowledge-based market Beximco Pharmaceutical Ltd. (BPL) is a well-established pharmaceutical company in Bangladesh. BPL holds the second position in this highly competitive knowledgeable market. BPL believes new competitive advantages need to be identified to succeed in the industry and at present new comer activity becomes the most challenging job. BPL is such a company, which never compromise with new comer. From the beginning they are providing that support but day by day its demand is rapidly increasing and BPL always ready to match with that demand. BPL starts to provide promotional back up from the launching date of new products. BPL ensure that the shareholder wealth maximization. The history of pharmaceutical business of the company dates back to the early 70s, when it started to import market and distribute medicines from world renowned companies like Upjohn Inc. of USA and Bayer AG of Germany. Since the very beginning, the company was highly successful in generating increased demand for its products which eventually justified local production. BPL has now grown to become one of Bangladesh’s leading pharmaceutical companies, supplying more than 10% of country’s total medicine need.

Today Beximco Pharma manufactures and markets its own branded generics for several diseases including AIDS, cancer, asthma, hypertension, and diabetes for both national and international markets.

 Beximco Pharma believes that being in the business which deals with human health makes us more responsible. Products come in a wide range of dosage forms including tablets, capsules, dry syrup, powder for suspension, cream, ointment, suppositories, metered dose nasal sprays, large volume intravenous fluids, metered dose inhalers etc. ensuring the global standard of quality. Pharmaceuticals sector of Bangladesh like all other industries is going to face new challenges. Rising price of materials in the international market and higher domestic inflation is going to be a big issue. Besides, competition in the local pharmaceuticals market is expected to intensity further. Beximco has to be aware of those issues to become a market leader in the industry. Though the sales revenue has decreased in the last year due to various reasons, it has the ability to regain its glorious pasts and advanced further.

 The report mainly highlights the results of various ratio analysis of the company. In order to make the analysis more informative, inter-firm comparisons have been provided by also performing ratio analysis of other leading pharmaceutical companies in Bangladesh. Costing procedure of a Pharmaceuticals company is very important and vast thing. It needs to update in a regular basis. Moreover, all Pharmaceuticals firms try to keep this information secret in this competitive market. Like all other pharmaceuticals company Beximco follows standard costing method for medicine productions. The unit price of each medicine is calculated by batch wise.

 Introduction:

This internship is a part of the Bachelor of Business Administration (BBA) program that provides an on-the-job experience to students. I was placed at Beximco Pharmaceuticals Limited, Operational Headquarters Dhanmondi as an internee student for two months. This internship program was my very first on-the-job exposure and provided me with learning experience and knowledge in several areas. During the first few weeks of my internship period, I was able to get accustomed to the working environment of Beximco Pharmaceutical Limited. As the internship continued, I not only learned about the activities and operations of Beximco Pharmaceutical Limited, but I also gathered some knowledge about the basic financing activities of Beximco Pharmaceuticals Limited in first one-month of my internship period.

 The topic of the report is “Financial Reporting and Ratio Analysis At Beximco Pharmaceuticals Ltd: A Review of Costing Functions”. The internship report prepared attempts to make a systematic analysis of the financial statements of Beximco Pharmaceuticals Ltd (BPL). The report mainly highlights the results of various ratio analysis of the company. In order to make the analysis more informative, Costing Procedure, inter-firm comparisons have been provided by also performing ratio analysis of other leading pharmaceutical companies in Bangladesh. It is hoped that the report would provide a reliable & effective insight into the performance of the particular company.

 Internship program is an attempt to acquaint the students with the real world situations so that the knowledge gained from the classroom is further strengthened. As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore it is an opportunity for the students to know about the real life situation through this internship program This internship report was prepared under the supervision of Ms. Jannaton Nahar, Assistant Professor, department of business administration, Bangladesh University and Mr. Fazlul Haque, Deputy Manager, Finance and Accounts, Beximco Pharmaceuticals Ltd.

 Beximco Pharmaceuticals Limited is a leading edge pharmaceutical company based in Dhaka, Bangladesh and is acclaimed for its outstanding product quality, world-class manufacturing facilities, product development capabilities and outstanding professional service. Beximco Pharma is the pioneer in pharmaceutical export from Bangladesh and has received National Export Trophy (Gold), the highest national accolade for export, for record Four times. Outstanding product quality, leading-edge technology, advances new products, and a commitment to serve the medical community. The Directors are responsible for the Company’s system of internal financial control. Although no system of internal control can provide absolute assurance against material misstatement and loss, the Company’s system is designed to provide the directors with reasonable assurance that problems are timely identified and dealt with approximately.

After ready made garments (RMG), pharmaceutical sector has become one of the largest sectors in earning foreign currency. Meeting more than 95 percent demand of the local market, Bangladeshi drugs gained a significant position in the world’s drug market. Locally manufactured drugs are now being exported to more than 52 countries across the globe like- Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand, and some countries of Central Asia, Africa, Europe and Latin America.

 Origin of the Report

 The report is originated to make a study on the financial statement, ratio analysis, costing procedure and the internal control system of Beximco Pharmaceuticals Limited as a part of the fulfillment of internship program required for the completion of BBA program of Bangladesh University. Without the combination of theoretical and practical relationship for a student education method will not more rich and helpful. Bookish knowledge is only theoretical knowledge, which cannot fully help in our professional life. So, every student must have practical knowledge.

In modern business world competition is very hard, the perfect coordination between theory and practice is of vital in the every business students Therefore, and an opportunity is offered by Bangladesh University, for its potential business graduates to get two months practical experience, which is known as “Internship Program”.  The study on “Financial Reporting and Ratio Analysis At Beximco Pharmaceuticals Ltd: A Review of Costing Functions” was carried out and this report was produced as requirement for the BBA Internship Program. The intern had earlier completed 40 required courses majoring in Finance, and was placed with the Accounting and Finance Department, I have selected to work as an internee in one of the leading company of pharmaceuticals field that is “Beximco Pharmaceuticals Limited (BPL)” a company of Beximco Group under a 9 week internship program, where his supervisor was Mr. Md. Fazlul Haque, Deputy Manager, Accounts and Finance, Beximco Pharmaceuticals Limited. At the end of the attachment period this study topic was selected in consultation with Ms. Jannaton Nahar, Assistant Professor, Department of Business Administration and the internship supervisor.  Internship Program brings a student quicker to the genuine life position and thereby helps to start on a career with some previous experience.

 Scope of the Report

There were huge scopes to work in the field of the report. Considering the dead line, the scope and exposure of the paper has been wide-ranging. The study, “Financial Reporting and Ratio Analysis At Beximco Pharmaceuticals Ltd: A Review of Costing Functions” has covered Beximco Pharmaceuticals Ltd. financial Statement. The impact of different external and internal factors on the flow of cash, profit, balance sheet and ratio analysis by BPL has been showed in this report. The valuation of BPL has been showed in this report. Also Costing procedure of a Pharmaceuticals company is very important and vast thing. It needs to update in a regular basis. Moreover, all Pharmaceuticals firms try to keep this information secret in this competitive market. So the study was basically tried to identify the costing procedure followed by BPL and what are the factors concerned with this procedure. The study was also tried to identify and analyze the various expenses incurred by the BPL in an accounting year

Significance of the report

 The perfect coordination between theory and practice is important in the context of the modern business world in order to resolve between these two areas. The main reason of this report is develop into recognizable with the realistic business world to get practical knowledge about the corporate world. Each and every one knows that there is no substitute of practical knowledge which is more advantageous than theoretical aspect

Objective of report

 The object of this report is to complete the project as per requirement of MBA program of the Bangladesh University. The submission of this report assures the University that the student has acquired two months of practical knowledge about real business world.

The objective of the study may be viewed as:

• General Objectives
• Specific Objectives

General objective:

  The general objective of the study is to prepare and submit a report on the topic “Financial Reporting and Ratio Analysis at Beximco Pharmaceuticals Ltd: a Review of Costing Functions”.

  The general objective is to determine the position of Beximco pharmaceuticals Ltd. by analyzing their financial Statement.

Specific objectives:

      To have an idea about the background of Beximco pharmaceuticals Ltd.

      To get an introduction about the organizational structure & how co-ordination among different set of activities is made.

      To set a general idea about operating procedures and functions of Accounts and Finance Department of BPL

      to collection from financial statements of the company

      to highlight the utility of financial ratios in credit analysis and competitive analysis as well as financial capability of the company

      to satisfy the shareholders by informing about the company

      To explore the specific costing procedure followed by the Beximco Pharmaceuticals Limited

      To relate the theoretical learning with the real life situation. How the chain works are completing.

Methodology of report:

 Selection of the topic:

Internship topic selected very important for a student. I am a student of Bangladesh University and internship program completed in Beximco Pharma Limited. The area chosen designed for the learning was selected by me and permitted by Ms. Jannaton Nahar Assistant Professor, Department of Business Administration, and Bangladesh University.

 Research Design:

The report is “Investigative” in nature. To perform the report data sources were identified and collected, this was classified, analyzed, interpreted and presented in a systematic manner and key points are found out.

Data Sources:

Two types of data are used to prepare the report, which are primary and secondary data.

(a)   Primary sources:

        Practical worked in BPL

        Face to face conversation with the Manager, officer and employees.

        Direct observation of BPL Accounts and Finance Division activities

        Face to face conversation with the client.

 (b) Secondary Sources:

        Annual Report (2008,2009,2009, and 2010) of Beximco, Square, and ACI Pharmaceuticals Limited

        Website of Beximco pharmaceuticals Limited

        Bangladesh Association of Pharmaceutical Industries

        Organizational Brochures, Office circulars, Published documents etc.

        Relevant books, Newspapers, Author etc

 Limitations of the Report

A wholehearted effort was applied to conduct the study work and to bring a reliable and fruitful result from which proper strategy can be adopted to this report. Some limitations were faced while preparing this report. Some of those limitations are highlighted below:

      Adequate and in-depth well-organized information is not available for access. Some hypothesis that may cause few errors or personal mistake in the report.

      It is something like impossible to cover the entire A & F Department’s service exploiting Sixty days time period while an employee or an officer is awarded with one or two year probationary period to do his or her particular job.

      The report covers only financial analysis. It does not cover management, marketing, HRM or other business related issues.

      Some of the information needed to explore the current marker scenario of the company was not disclosed.

      Ratio analysis is done only based on Annual Report. Direct income statement, cash flow, balance sheet are not taken into consideration as they are treated as confidential.

      In spite of all these limitations, though I have prepared many reports before, I had no experience of internship. So inexperience is one of the main constraints of the study. I have tried to put the best effort as far as was possible.

2. Historical background of Beximco Pharmaceuticals Ltd:

Beximco Pharmaceuticals Ltd. belongs to Beximco Group, the largest private sector business conglomerate in Bangladesh. Bangladesh Export Import Company (BEXIMCO). The company was incorporated in 1976 and commenced operations in 1980 with the manufacturing and marketing, importing products from global MNCs like Bayer AG, Germany and Upjohn Inc., USA under licensing arrangements. In 1983, the company started manufacturing its own formulations and it launched export operation in 1992. In 1985 BPL was listed in Dhaka Stock Exchange (DSE) as a Public Limited Company. While the very beginning, the company was highly successful in generating increased demand for its products which eventually justified local production. Since then, the journey continued, and today, Beximco pharma is a leading manufacturer and exporter of pharmaceuticals in the country, winning National Export Trophy (Gold) a record four times. Beximco Pharma’s manufacturer facilities have been attributed by major global regulatory bodies, and it has expended its geographic footprint across four continents. As a public limited company, its shares are actively traded in Dhaka Stock Exchange and Chittagong Stock Exchange, and Beximco Pharma has the unique distinction of being the only company in the country listed on AIM of London Stock Exchange. Today Beximco Pharma manufactures and markets its own branded generics for several diseases including AIDS, cancer, asthma, hypertension, and diabetes for both national and international markets, having a broad portfolio of more than 500 products and a dedicated team of around 2,700 employees.

 It manufactures a range of dosage forms including tablets, capsules, dry syrup, powder, cream, ointment, suppositories, large volume intravenous fluids, metered dose inhalers etc. in several world-class manufacturing plants, ensuring high quality standards complying with the World Health Organization (WHO) approved current Good Manufacturing Practices (cGMP). Beximco also contract manufactures for major international brands of leading multinational companies.

 Beximco has a strong market focus and is anticipating continued future growth by leveraging business capabilities and developing superior product brands and markets. In particular it is very interested in developing a strong export market in USA and Europe. To meet the future in 2015 demand it has invested over US 150 million dollar to build a new state-of-the-art manufacturing plant, confirming to USFDA and UK MHRA standards.

Company Profile at a Glance:-

Table   : 1         Profile of BPL                                                                                              Source: Annual Report of BPL, 2011

Mission:

Beximco pharma are committed to enhancing human health and well being by providing contemporary and affordable medicines, manufactured in full compliance with global quality standards. They are continually strive to improve our core capabilities to address the unmet medicals needs of patients and to deliver outstanding results for our shareholders, employees customers, business associates, fellow citizens etc.

Vision:

Beximco Pharma will be one of the most trusted, admired and successful pharmaceuticals companies in the region with a focus on strengthening research and development capabilities, creating partnerships and building presence across the global.

Board and Management:

 Beximco Pharmaceuticals Ltd. is managed by the Board of Directors, an Executive Committee and a Management Committee. Board of Directors is responsible for the corporate governance. It consists of ten members including the Chairman, A S F Rahman and the Vice Chairman, Salman F Rahman. The Management Committee comprises of ten eleven-notch professionals who are one of the bests in Bangladesh in their own fields. This committee is leaded by Mr. Nazmul Hasan, Chief Executive Officer (CEO) who is responsible for the overall management of the business. The five-member Executive Committee is headed by Mr. Osman Kaiser Chowdhury who is also a member of the Board of Directors. The Executive Committee is accountable for both operational and financial performance of the company. This committee is also responsible for budget approval, policy adoption or changes, new project review, compliance audit etc. This committee reviews and manages day-to-day business operation and recommends strategy options to the Executive Committee.

(a)The Board of Directors:-

(b)The Management Committee:-

(c)The Executive Committee:-

2011 Highlights:

        Achieved the highest sales growth among the top ten pharmaceuticals companies

(IMS 2011).

        Received EU GMP accreditation for OSD and Ophthalmic facilities.

        Registered 48 new products in 8 countries including New Zealand, Azerbaijan, Kuwait, Singapore and Colombia.

        Became the only pharmaceuticals company to win National Export (Gold) for fourth time.

        Introduced 40 new generics in 55 different dosage forms and strengths.

        Launched combination therapies: NapaDol (Paracetamol+ Tramadol), Dinova (Naproxen+ Esomeprazole) & Glipita M (Sitagliptin+ Metaformin) for the first time in Bangladesh.

        Launched operation of Dry Powder Inhaler (DPI) and Perfilled Syrings (PFS) units.

        Took up a major corporate rebranding initiative.

Factories:

Beximco Pharma is situated at Tongi, the capital city Dhaka; our manufacturing site extends over an area of 23 acres. The site houses manufacturing facilities for producing various drug formulae in different strengths and delivery system such as capsules, tablets, intravenous fluids, metered dose inhalers, sterile ophthalmic drops, prefilled syringes, dry powder inhalers, injectables, nebulizer solutions, creams, ointments, suppositories etc. The site has its own utility infrastructure to ensure adequate generation and distribution of electricity with an installed capacity of 10MW, in addition to water purifying and liquid nitrogen generation facilities. The bulk drug unit for producing paracetamol is also located within this site. The Company’s penicillin API and formulation units are situated at Kaliakor, 20 km from the main site.

Products:  

 Beximco Pharma offer their customers a comprehensive and high-quality product portfolio encompassing all major therapeutic categories, available in various dosage forms including tablets, capsules, syrup, suspension, sterile, eye drops, injectables, nasal sprays, creams, ointments, suppositories, IV fluids, metered dose inhales, dry powder, inhales, prefilled syrings etc. Their therapeutic groups host quality solutions for treating cardiovascular, musculoskeletal, Endocrine, gastrointestinal, metabolic, allergic, and respiratory other disorders.

 Currently, Bexmico Pharma produces 284 generics in 508 strengths and dosage forms. Time after time their pharmaceutical brands are found in the top ranks in their respective therapeutic categories. In the domestic market, Beximco Pharma maintained its leadership position in key therapeutic segments such as gastrointestinal and analgesic. 2011 was a year of restricting and renewed spirits for their marketing and sales teams. Also Beximco Pharma introduced 40 new generics in a total of 55 presentations, which include NapaDol (Paracetamol+ Tramadol), Dinova (Naproxen+ Esomeprazole) & Glipita M (Sitagliptin+ Metaformin), operation of Dry Powder Inhaler (DPI) and Perfilled Syrings (PFS) units.for the first time in Bangladesh.

Beximco Group:

Beximco Pharma belongs to Beximco Group, the largest private sector industrial conglomerate in Bangladesh, with diversified activities into:

   Textile

    Jute

    Pharmaceuticals

    Media

    Ceramic

    Energy

    Aviation

    Hospitality

    22 companies: 5 are publicly listed, 17 are private

    36,000 employees, 250,000 shareholders

Beximco Chemical Division:

      Beximco Pharmaceuticals Limited (BPL)

      Beximco Infusion Limited (BIL)

      Basic Chemical unit (BCU)

      Pharmatek Chemical Limited (PCL)

      I&I Services Limited

      Shuktara Printers

      Liquid Nitrogen Plan

Corporate Strategies:

(a)  Quality:

The BPL believes that being in the business which deals with human health makes us more responsible. This sense of responsibility compels BPL to keep the highest standards of its products. Through these products we seek to deliver clear health benefits and higher values to the patients. With this in mind BPL has commissioned state-of-the-art manufacturing facilities with innovative new technologies. Beximco Pharma use the most modern equipment for quality control and stringent quality assurance procedure and the manufacturing process conforms strictly to the current Good Manufacturing Practices.

(b)  Research & Development:

Research & Development (R&D) is the key to success for any pharmaceuticals company. We have it top priority and have made substantial investment in upgrading their generic drug capabilities as firmly believe R&D plays the most important role in spurring innovation and helps a company go up the value chain. There research and development activities are closely focused on market needs and driven by technological progress in order to create product differentiation.

There team comprising top class formulation scientists with extensive experience of working in leading pharmaceuticals companies in the world continuously strive to integrate the advance technological changes to create competitive edge and match international standards. There has been a series of positive development in the year and their team successfully introduced 40 new generic formulations in 55 different presentations and expanded their dosage delivery portfolio with technology driven products like prefilled syrings, total parenteral nutrition, dry powder inhales etc.

Beximco Pharma’s well defined organizational structure, policy guidelines and internal controls ensure efficiency of operations, and compliance with applicable regulations. The Company continuously upgrades these systems in line with the best practices in the industry. Other initiatives to keep their team updated with the recent advances in analytical methodology, platform technology, and regulatory affairs include frequent in house and overseas workshops and training programs. The benefits we derive as a result of these initiatives will only increase in the coming years.

Block Buster product:

Highest selling drug in Bangladesh pharmaceutical market in terms of value Bextrum/Bextrum Gold

Emerged as the most admired and highest selling nutritional supplement in Bangladesh Market in just one year.AzmasolHighest selling mastered dose inhaler in Bangladesh in terms of value

Table: 2                                Block Buster products

Corporate Social responsibility:

Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its adherence to law, ethical standards, and international norms. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, business would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People, Planet and Profit.

      As a first Bangladeshi Pharma company BPL introducing anti-retroviral medicines for HIV/AIDS treatment, medicine to combat the virus of bird flu and an oral anti-smoking drug to help chronic smokers quit smoking.

      Scientific Seminar Series, the Medical Department arranges seminars and workshops covering a wide range of specialized medical topics which are attended by country’s renowned physicians and scientists.

      Food and Medicine donation during different natural disasters.

      Publishing posters-banners-festoons, arranging rallies-seminars-conference etc. on AIDS, Diabetes, Smoking, Cancer, Asthma, Birds Flu etc.

      Beximco Pharmaceuticals Ltd. manufactures CFC-free Metered Dose Inhalers among the few pharmaceuticals in the world.

      Sponsoring, organizing & participating many cultural and sports events like Corporate Cricket League, SAAf Football Championship, Inter-School Handball tournament, Open air concert etc.

      Awareness Campaigns, Employee Volunteering Program, Preserving Cultural Heritage, Responsibility to the Environment, Medical Research Update, Collaborative Research etc.

 International Market:

Beximco Pharma continues to explore export opportunities and to reinforce its footprint on a global scale, which currently covers five different continents. Alongside the continuous endeavor to strengthen the position in existing markets, BPL attempts to achieve dynamic growth worldwide. Beximco Pharma commenced its international operations with the export of API to Hong Kong in 1992 and formulation products to Russia in 1993. The company has received the ‘National Export Trophy’ (Gold) for an impressive three times. Since then, BPL has taken greater strides over the years to increase its footprints in international markets.

In 2011, BPL added yet another milestone to their repertoire when Beximco Pharma was awarded the National Export Trophy (Gold) by the export promotion bureau for excellent performance for the 2009-2010, in this year delivering robust growth in revenue and profit. The company achieved sales turnover of BDT 7.89 billion registering y-o-y growth of 21.56%. According to IMS, Beximco Pharma achieved the highest growth among all the leading pharmaceuticals companies in the company. This industry has been consistently performing well with a CAGR of 20% in the last 3 years. It also continues to perform well in exports and achieved a growth of 17.08% over the previous year. During the year there have successfully registered 48 products in overseas markets.

This is the highest recognition for the companies in the export sector for significant contribution to Bangladesh’s economic growth. They hope to persevere in stride in our service towards the progress of our country. At the; moment, they have the highest number of international accreditations in the country and their aim to leverage the their recourses as they venture into new territories. With the newly received product approvals from New Zealand, Kuwait and Azerbaijan, they plan to enter into these markets soon. They received GMP accreditation from Austria Agency for Health and Food Safety (AGES), Austria; for European Union and have set their target of market entry into the EU within the shortest possible time. Their products have been well received in the overseas markets and have been supplied to various reputed such as the Raffles Hospital, Heathway and K K Women’s & Children’s Hospital in Singapore, MEDS and Kenyatta National Hospital. Kenya. Beximco pharma is also an enlisted supplier for UNICEF (United Nations International Children’s Emergency Funds), save the Children, WHO (World Health Organization) and ADF (Asthma Dug Facility). Key drug patent expirations by the year 2015 have been estimated to be worth more than USD 150 billion in annual drug sales, which present lucrative opportunities for generic drug manufacturers like Beximco Pharma.

 Departments of Beximco Pharma:

 BPL operates its business through widespread departmentalization as needed for specified effectiveness of the tasks. The business activities of BPL are directed, controlled and monitored from the head office of Beximco Pharmaceuticals Ltd. Being a leading Pharmaceutical company in the country it employs a good number of people in different departments to keeps its business thriving. The following major departments coordinate the activities of BPL:

       Strategic Brand Management (SBM) department

      Finance and Accounts department

      Procurement Department

      Sales department

      Human Resource Department (HRD)

      Training department

      Project management & Business Development Department

      International Marketing department

      Management Information System (MIS) department

      Multimedia department

      Planning department

      Market Research & Statistical Cell (MRC) department

      Medical Services Department (MSD)

      BPL Factory (Works Department)

Major Operational Departments of Beximco Pharma:

      Manufacturing: – Production, Quality control, Quality Assurance, Production Planning, Research and Development, Engineering, Warehouse, General Admin, Project.

    Selling, Marketing and Distribution: – Domestic Marketing, International Marketing, Sales, Inventory Planning, International Regulatory Affairs.

      Other Service Departments: – General Management, Accounts and Finances, Corporate Secretarial Service, Procurement, Internal Audit, Human Resource, Project Management and Business Development, Department Of Engineering and Technology.

Future Plans:

The Medical Department plans to strengthen its activities further through widening the range of customers and services. The future plans include:

       Setting up electronic information services in regional centers for better and faster information exchange with the headquarters and the rest of the world.

       Providing more specialized services to doctors of various disciplines.

       Conduct around 300 clinical meetings nationwide

       Published 4 quarterly Medical Newsletter, 12 online monthly E-Newsletter on Ophthalmology. Publication of scientific research journal.

 New Product Update

      Beximco Pharma introduces Glimpse products Napadol, Dinova, Acifix, Glipita, Cleaven, Xalaprost in 2011.

      55 new product launched in 2011 like Analgesic (Napadol tablet 1^st Time” in Bangladesh), Anti- Infective, Cardiovascular, CNS Endocrine & Met Disorders (Glipita 1^st Time” in Bangladesh) , IV Fluid Musculo- Skeletal etc.

      Beximco Pharma launches10 new products during the first quarter of 2012

      Beximco Pharma launches 9 new products in oversea market.

Beximco Pharmas Differential Edge:

      Received approval from MCC, South Africa for metered dose inhalers

World class manufacturing facilities

      Highest GMP standards

      Outstanding product diversification quality

      Targeted global expansion; building presence in regulated markets

      Sterile ophthalmic facility was accredited by Therapeutic Goods Administration (TGA) Australia

      Sophisticated formulation technology

      Partnership with global pharmaceutical and research companies

      Diversified dosage forms & products

      Making Significant investment in R&D

      Excellent customer services

      Responsible care for the environment

      Commitment to the people & the society

 Background of Pharmaceuticals Industry of Bangladesh

 The scenario of pharmaceutical industry can be described in two parts- before the Drug Policy Ordinance in 1982 and after the Drug Policy Ordinance in 1982. Before 1982, there were 177 licensed pharmaceutical manufacturers in the country but local production used to be dominated7by the big multinational drug companies (MNCs) which manufactured the lion’s share about 75% of the products, 25 medium sized national companies manufactured another 15% of the products and 133 small local companies (LCs) produced the remaining 10%.A great change was noticeable in the pharmaceutical industry after the Drug Policy Ordinance of 1982. The total national production of pharmaceuticals has risen by a substantial 63%; the value of essential drug made in national factories has gone up by 140% over the four years following the drug policy promulgation. At present, more than 95% of the total demand of medicinal products is met by local production. Local companies (LCs) increased their share from 25% to 70% on total annual production between 1982 and 2000.

The pharmaceutical industry has enjoyed great prosperity as nineteen-ninety-eight marked another stellar year for the industry. Profits stayed in a sharp up-trend as 28 of the 37 stocks in the industry beat the Standard & Poor’s 500 Index, which rose by 26.7%. The pharmaceutical industry includes establishments primarily engaged in manufacturing, fabricating, and processing medicinal substances into finished pharmaceuticals for human and veterinary use. Ethical brand name drugs, generic products, and nonprescription or over the counter medication constitute the pharmaceutical industry sub-sector. In 2000, there were 210 licensed allopathic drug-manufacturing units in the country and now there are 265 registered companies are operating. Few of the multinational companies closed their business in Bangladesh, as it was difficult to make huge profit after the Drug Policy.

After ready made garments (RMG), pharmaceutical sector has become one of the largest sectors in earning foreign currency. Meeting more than 95 percent demand of the local market, Bangladeshi drugs gained a significant position in the world’s drug market. Locally manufactured drugs are now being exported to more than 52 countries across the globe like- Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand, and some countries of Central Asia and Africa.

 Table: 3     National Demand met by Local production & Imported drugs

 Pharmaceutical Industry in Bangladesh

Pharmaceutical sector is technologically the most developed manufacturing industries in Bangladesh and the third largest industry in terms of contribution to government’s revenue. The industry contributes about 1% of the total GDP. There are about 250 licensed pharmaceutical manufacturers in the country; however, currently a little over 100 companies are in operation. It is highly concentrated as top 20 companies produce 85% of the revenue. According to IMS, a US-based market research firm, the retail market size is estimated to be around BDT 84 billion as on 2011.

 Bangladesh pharmaceutical companied focus primarily on branded generic final formulations, mostly using imported APIs (Active Pharmaceuticals Ingredient). Branded generics are a category of drugs, including prescription products, that are either novel dosage forms of off-patent products produced by a manufacturer that is not the originator of the molecule, or a molecule copy of an off-patent product with a trade name. About 85% of the drugs sold in Bangladesh are generics and 15% are patented drugs – the structure differs significantly from the international market. Branded generic drugs represent about 25% on average of worldwide pharmaceuticals sales’; however, given the popularity in emerging markets like China, India and Latin America, branded generic drugs may well dominate the total sales within a decade.

 Bangladesh manufactures about 450 generic drugs for 5,300 registered brands which have 8,300 different forms of dosages and strengths. These include a wide range of products from anti-ulcerants, flouroquinolones, anti-rheumatic non-steroid drugs, non-narcotic analgesics, antihistamines, and oral anti-diabetic drugs. Some larger firms have also started producing anti-cancer and anti-retroviral drugs. Domestic manufacturers account for 97% of the drug sales in the local market while the remaining 3% are imported. This is a complete turnaround over from two/three decades back when imports used to dominate the market. The imported drugs include essential live saving drugs and other high quality drugs. The ratio will further increase in favor of the local production as some of the big players are poised to manufacture these high quality drugs in-house in the future.

 Number of Pharmaceutical Companies in Bangladesh

There are around Two hundred and thirty (230) small and medium pharmaceuticals companies in Bangladesh and most of them working hard to produce quality products in this emerging world pharmaceutical market. Bangladeshi pharmaceuticals companies contribute to the markets in 95%.  The size of the retail market reached BDT 84.0 billion as on 2011 based on IMS report. The report further stated that, retail sales in the domestic market achieved 23.6% growth in 2011 following 23.8% and 16.8% growth in 2010 and 2009 respectively. High growth in the last three years (78.8% cumulative and 21.4% CAGR) meant that the Bangladesh Pharmaceutical market doubled in just over four years. The retail market also crossed USD 1.0 billion in size in 2011. It is one of the fastest growing sectors in the country with an annual average growth rate of 17.2% over the last five years and 13.1% over the last decade.

Today, Bangladesh Pharmaceutical Industry is successfully exporting APIs and a wide range of products covering all major therapeutic classes and dosage forms to 71 countries. Beside regular forms like; Tablets, Capsules & Syrups, Bangladesh is also exporting high-tech specialized products like HFA Inhalers, CFC Inhalers, Suppositories, Nasal Sprays, Injectables, IV Infusions, etc. are also being exported from Bangladesh, and have been well accepted by the Medical Practitioners, Chemists, Patients and the Regulatory Bodies of all the importing nations. The packaging and the presentation of the products of Bangladesh are comparable to any international standard and have been accept.

The Pharma Industry of Bangladesh is now on the verge of entering highly regulated overseas markets like USA and Europe. In this connection, several pharmaceutical manufacturers have already made huge investments in their new state of art manufacturing facilities. A number of companies have already obtained or in the process of obtaining UKMHRA, EU, TGA, Australia, GCC Certifications.

The future of pharmaceutical exports from Bangladesh is bright. After the inclusion of the Doha declaration in WTO / TRIPS Agreement, each and every country belonging to the LDC Category has the option not to opt for pharmaceutical product patent until 2016, which means they can now legally reverse engineer patented products and sell in their markets as well as can export to other LDCs. This creates a huge export opportunities for Bangladesh, because, among all the 50 LDCs, Bangladesh is the only country which had a strong base for the pharma manufacturing.

Some companies name given bellow:

 NameAddress1. ACME Laboratories Ltd.55, Satmasjid Road, Danmondi, Dhaka
Tel : 812903, 8129532. Advanced Chemical Ind.9, Motijheel C/A, Motijheel, Dhaka
Tel : 236254-583.Ambee Pharmaceuticals 184/1, Tejgaon I/A, Tejgaon, Dhaka
Tel : 604604, 6069334. Aristo PharmaObaidi Manson, 37, Mitford Road
Mitford, Dhaka
Tel : 230736, 2366425.Aexim Pharmaceuticals Ltd.House 197, Lane 1, New DOHS,
Mohakhali, Dhaka-12066.Beximco Pharmaceuticals Ltd.19 Dhanmondi R/A, Road-7, Dhaka -1205
Tel : 861891-5, fax: +88-2-86138887.Ciba Geigy Bangladesh Ltd.House-50, Road-2/A, Dhanmondi R/A, Dhaka
Tel : 865302-7 , Fax : 880-2-8634898.Eskayee Bangladesh Ltd.52, Motijheel C/A, Motijheel, Dhaka
Tel : 235913, 2310869.Fisons Bangladesh Ltd.6/2 A, Shegun Bagicha, Shegun Bagicha, Dhaka
Tel : 865016, 865019-2510.Ganashasta PharmaceuticalsMirpur Road, Dhaka
Tel : 863567, 50040611.Gaco Pharmaceuticals65, Dilkusha C/A, Dilkusha, Dhaka
Tel: 252651, 25655712.Glaxo Bangladesh Ltd.Bilkis Tower, 6, Gulshan Avenue, Dhaka
Tel: 885074, 88508613.Hoechest Pharmaceuticals133 Kakrail, New Baily Road, Dhaka
Tel : 415252, 416251-514.Hoffman LaRocheHouse 22/A, Road-2, Danmondi R/A, Dhaka
Tel : 861370, 86161615.Ibne Sina PharmaceuticalsHouse-77, Road 12/A, Danmondi R/A, Dhaka
Tel : 32628216.Libra PharmaceuticalsTwin House , Nawab Habibula Road, Shahbag, Dhaka
Tel: 50364517.Incepta Pharmaceuticals Ltd.Tejgaon I/A, Tejgaon,
Dhaka, Bangladesh18.Navana PharmaceuticalsIslam Chamber, Motijheel C/A, Dhaka19.Opso Saline Ltd.37, Segun Bagicha, Segun Bagicha, Dhaka
Tel : 406617, 40239420.Organon Bangladesh Ltd.Pacific Centre, 9th Floor, 14, Mohakhali C.A.
Dhaka-1212, Tel :871431-3421.Opsonin Chemical Ind.31, New Easkaton Road, New Easkaton, Dhaka
Tel : 402339, 40882122.Orion Laboratories154, Tejgaon I/A Tejgaon, Dhaka
Tel : 60225023.Pfizer (Bangladesh) Ltd.6/3, Shegon Bagicha, Dhaka
Tel : 25764424.Pharmadesh Laboratories334, Shegon Bagicha, Dhaka
Tel : 408267, 40048-925.Rhone Poulenc (Bang) Ltd.29, Topkhana Road, Dhaka
Tel : 862231-3226.Reckitt &Colman Bang Ltd.58-59, Nasirabad I/A Nasirabad, Chittagong

Tel: 210962, 21213627.Square Pharmaceuticals Ltd48, Mohakhali, Dhaka-1212
Tel : 887729-3828.Sandoz Pharma Ltd.House-37/A, Road-5, Dhanmondi R/A, Dhaka29.Sheba Chemicals Ltd.Varda, Kazia, Rajshahi30.Scientific Drug Industry8/3 Shegun Bagicha, Shegun Bagicha, Dhaka
Tel : 282482

Table: 4Pharmaceuticals Company of Bangladesh

 Drivers for Future Growth

Table compares the indicators with other regions of the world and shows that Bangladesh is way behind other countries. Government spending proportion is much lower than that in other regions – it is one possible area where future growth may come from. Moreover, the total health expenditure to GDP ratio and health expenditure per capita of Bangladesh (both of which gradually increased from 2000) is very low in comparison to developed and developing countries. Since the base is still very low, we expect the recent growth in the local retail market to continue in the current decade. Some other factors that will also boost the industry growth include:

      Increase in number of modern hospitals

      Increase in level of service/treatment provided in the hospitals with improved/more modern diagnostic equipments

      General people are getting more health conscious

       growing income level of the people

      Export of pharmaceutical products

Government % in total health Exp:

 Growth Projections:

Table shows the healthcare expenditure as % of GDP for neighboring countries to Bangladesh as well as some other developed countries as well. Bangladesh is way below in the list of countries with only Pakistan below in terms of healthcare expenditure percentage. If we assume that Bangladesh is going to achieve 6.5% real GDP growth rate over the next five years and healthcare expenditure to reach 5% of GDP by that time, then healthcare expenditure in nominal value will grow at 15.4% annually over the next five years. Bangladesh has been achieving around 6% GDP growth rate over the last decade. The current government has set target to achieve even higher growth rate in this decade, with a vision to achieve double-digit growth within 2018. As such, it is likely that the actual growth in GDP in the next five years will be greater than the projected 6.5% – in that case the growth in healthcare expenditure is likely to be more than our simple estimated value of ~15%.

At present, the retail pharmaceutical market size is about 1% of GDP and health expenditure is about 3.35% of GDP. Therefore, the pharmaceutical sector revenue accounts for ~30% of the healthcare expenditure. If we assume that the ratio will remain constant over the years, pharmaceutical revenue will also grow at par – at 15.4% annually over the next five years.

Major Players in Pharmaceuticals sectors:

Based on the IMS report for the fourth quarter 2011, Square Pharmaceuticals (DSE: SQURPHARMA) holds the top market share in the retail market – 18.7%, followed by Incepta Pharmaceuticals (INCEPTA) – 9.3%, Beximco Pharmaceuticals (DSE: BXPHARMA) – 8.8%, Opsonin Pharma (OPSONIN) – 5.1% and Renata (DSE: RENATA) – 4.9%. The top five companies held 46.8% market share in 2011, slightly more than their 46.2% market holding in 2010 – indicating cumulative revenue growth in excess of the sector growth. Among the top five, three are listed in DSE – Square, Beximco and Renata.

Top 10 companies held 67.7% of the market in 2011 as shown in chart 1. Growth at par with the entire market meant that there cumulative holding did not change from 2010 level. However, the market share shifted among the top players. SQURPHARMA lost 0.5% market share in the last year (from 19.2% in 2010) while the next four companies gained 1.1% market share in the same period. Growth in local sales of these four companies – INCEPTA, BXPHARMA, OPSONIN and RENATA – was 28.5% in 2011, increasing their market share from 27.0% in 2010 to 28.1% in 2011.

Export and Import of Pharmaceuticals Sector in Bangladesh:

 Bangladesh’s overall export earnings from pharmaceuticals reached USD 46.0 billion for the calendar year 2011, recording a growth of 16.1% over USD 39.6 billion in calendar year 2010. Exports earnings in Q1’2012 were USD 10.9 billion, 5.7% up from the same period previous year.

We expect the export growth to pick up from 2012 onwards given that the world trade is likely to recover from the sovereign debt crisis. However, the growth rate is likely to peak four/five years from now. Most of the top pharmaceutical companies are gearing up for the export market as most of them have been establishing GMP (Good Manufacturing Practice) compliance plants. Some of the top companies have already received UK-MHRA Certificate (Square Pharmaceuticals being the first company to do so in 2007) while most of them are waiting for US FDA approval. Apart from these two major GMP certificate, most of the top companies have already received GMP clearance from a number of countries, including Turkey, Yemen, Kenya, Congo, Uganda, Sudan, Ethiopia, etc. Once the growth in the domestic market becomes steady, companies are likely to focus heavily in the export market. Earlier, we forecasted domestic market to grow at around 15% annually over the next five years. Top companies can easily achieve more than 15% growth by attaining higher export sales. Going beyond 2016, export is likely to be the major driver behind company’s top line growth.

Performance of Listed Company of Dhaka Stock Exchange (DSE) in 2011:

 Of the six listed companies, only BXPHARMA and IBNSINA reports stand-alone statements while the other four reports consolidated numbers. For SQURPHARMA and RENATA, the pharmaceutical business generates bulk of the consolidated revenue (80% and 94% respectively for the two companies) while for ACI and GLAXOSMITH the proportion is much lower about 50%).

Comparison of listed pharmaceuticals companies

                      (BDT)                                   (BDT m)                       2011 (BDT m)                          SQURPHARMA                        268.7                               71,161.1                         3,565.4                             20.0XBEXPHARMA                        93.9                                 23,614.0                          1,198.4                             19.7XRENATA                        981.2                               27,710.9                          1,066.7                             26.0XACI                        247.8                                4,885.3                               238.1                             20.5XGLAXOSMITH                        605.2                                7,290.5                               281.1                             25.8XIBNSINA                        135.5                                1,756.1                                 70.8                              24.8X                                                                                                               MCAP Weighted P/E       21.2x

Table:     7        Market price and market capitalization given as on May 10, 2012                 Source: DSE Website

Among the six companies, SQURPHARMA, BXPHARMA and RENATA present investors with prospective investment opportunities. For IBNSINA the market capitalization is very small for investment.

The sector P/E ratio (comprising of these six companies only) stands at (21.2x). Because of the market weight of the top two, the P/E ratio is heavily tilted towards Square Pharmaceuticals (20.0x) and Beximco Pharmaceuticals (19.7x). Renata has the highest P/E ratio of (26.0x).

3. Accounts & Finance Department of Beximco Pharmaceuticals Ltd.

The activities of the Accounts and finance department are carried over by talented and adequate person. The functions of Accounts and Finance department are carried over five sections. Actually proper control purpose, they subdivide their functions to the several sections. The sections of Accounts and Finance department are as follows:

                  Financial Accounts- Strategic Business Unit (SBU).

                  Financial Accounts- Non- Strategic Business Unit (Non-SBU).

                  IOC & BP (Industrial Operation Control and Business Planning).

                  Treasury.

                  Legal Affairs & Compliance.

                  Tax, Trust and Payroll.

Hierarchy of Accounts and Finance Department:

3. (1) Financial Accounts SBU:

The major function of this section is to prepare financial report. They prepare the financial report of Beximco Pharma. There is a manager to monitoring the activities of this section. The major activities of these sections are as follows:

                  Preparation of financial report for external reporting.

                  Transaction recording and coordination

                  Preparation  of  financial report for Quarterly, Half yearly, Annually

                  Preparation financial report for management and Shareholders

                  Conduct statutory audit

                  Printing Annual Report

                  Compliance with regulatory bodies ; Security Exchange Commission, DSE,CSE,LSE

3. (2) Financial Accounts Non- SBU:

This section does the works of some supporting company of Beximco Pharma. These supporting companies are as follows:

I. Shuktara Printing Ltd.: Shuktara Printing Ltd. supplies the printing materials to the BPL. For leaflet and other printing materials are needed for drug are supplied by Shuktara printing Ltd. though it is unable to supply all printing materials needed.

II. Bangladesh Antibiotic Industry Ltd.: Bangladesh Antibiotic Industry Ltd. (BAIL) supplies antibiotic to the BPL. There is a manufacturing unit to Kaliakoir near to Gazipur to produce antibiotic. There is a responsible person who prepares financial reports and all recording related to BAIL. They also deal with the other pharmaceutical company to supply materials. This services also known as toll services.

III. I & I services Ltd.: I&I services Ltd. provides distribution services to the BPL. Through 19 depots they deliver drugs to the chemist. There is a central depot to control all the depot and services.

IV. Pharmatek chemicals Ltd.: They provide Chemicals to the BPL. Pharmatek supplies Napa raw materials to the BPL. There is a responsible person to control, reporting and recording all transactions relating the Pharmateck chemicals Ltd.

3. (3) IOC&BP(Industry Operation control & Business Planning) :

The extended form of IOC& BP is Industrial operation control & business planning. This section does the Costing and Budgeting of BPL. Their work is not bounded to the costing and budgeting functions only. They provide information to the planning, marketing, purchasing and others departments for proper decision making. This section of accounts and finance department does the reporting to the management. They prepare different types of cost reports.

Activities of this department are as follows:

                  Material cost and Operating Expense Budget and Monitoring

                  Prepare cost sheet.

                  Determine Manufacturing cost of a product.

                  Allocate Overhead to the product.

                  Vat Compliance

                  Inventory monitoring

                  Determine Tender Cost sheet.

3. (4) Treasury:

Treasury section deals with fund management. A review is made every week for this purpose. This department controls and monitors cash flow positions. There is a responsible person for monitoring and controlling activities of treasury sections.

                  Cash Flow projection, planning and management

                  Daily fund receipt and disbursement

                  Daily sales and collection monitoring

                  Maintain supplier’s accounts

                  Liasion with banks

                  Accounts receivable monitoring

3. (5) Legal Affairs & Compliance:

This section of Accounts and Finance deals with the legal issue of the BPL. The Major activities of this section are as follows:

                 Trade license of the company including the International selling.

                 Value added tax related activities.

                 Drag license related activities.

                 New product Copyright.

                 Trademark related activities.

                 Boiler permission Renewal.

                 Chemical Certificate related issue.

                 Land related activities.

3. (6) Tax, Trust and Payroll:

The Tax and Payroll section of Accounts and Finance department deals with the taxation and Payroll services to the company. The major activities are as follows:

                  Salary disbursement to the employee.

                  Salary loan to the employee.

                  Provident fund related activities.

                  Corporate tax, Employee tax, Salary Tax and Income tax of the company

                   Trust Accounts-

      Provident fund

      WPPF

 4. Financial Performance Analysis of Beximco Pharmaceuticals Limited:

A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants.

For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis:

1. Statement of Financial Position: also referred to as a balance sheet, reports on a company’s assets, liabilities, and ownership equity at a given point in time. This financial statement provides information about the nature and amounts of investments in enterprise resources, obligations to creditors, and the owners’ equity in net resources.

1. Statement of Comprehensive Income: also referred to as Profit and Loss statement (or a “P&L”), reports on a company’s income, expenses, and profits over a period of time. A Profit & Loss statement provides information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state. The income statement, often called the statement of income or statement of earnings. The business and investment community uses this report to determine profitability, investment value and credit worthiness. It provides investors and creditors with information that helps them predict the amounts, timing, and uncertainty of future cash flows.

3. Statement of Changes in Equity: explains the changes of the company’s equity throughout the reporting period. Its related transaction with the shareholders, profit of the year.
4. Statement of cash flows: reports on a company’s cash flow activities, particularly its operating, investing, cash receipts, cash payments, and net change in cash resulting from operating, investing, and financing activities of an enterprise during a period, in a format that reconciles the beginning  and ending cash balances.

Nature of Financial Statements:

Financial statements are prepared for the purpose of presenting a periodical review or report by the management and deal with the state of investment in business and result achieved during the period under review. They reflect a combination of recorded facts, accounting concepts and conventions and personal judgments. From this it is clear that financial statements are affected by three things i.e., recorded facts, accounting conventions and personal judgments.

Importance of Financial Statements:

The information given in the financial statements is very useful to a number of parties as given below:

¨Owners: The owners provide funds for the operations of a business and they want to know whether their funds are being properly utilized or not. The financial statements prepared from time to time satisfy their curiosity.

¨ Creditors: Creditors (i.e., suppliers of goods and services on credit, bankers and other lenders of money) want to know the financial position of a concern before giving loans or granting credit. The financial statements help them in judging such position.

¨ Investors: Prospective investors, who want to invest money in a firm, would like to make an analysis of the financial statements of that firm to know how safe proposed investment will be.

¨ Employees: Employees are interested in the financial position of a concern they serve, particularly when payment of bonus depends upon the size of the profits earned. ¨ Government: Central and State Governments are interested in the financial statements because they reflect the earnings for a particular period for purposes of taxation. Moreover, these financial statements are used for compiling statistics concerning business which, in turn, help in compiling national accounts.

¨ Consumers: Consumers are interested in the establishment of good accounting control so that cost of production may be reduced with the resultant reduction of the prices of goods they buy.

¨ Managers: Management is the art of getting things done through others. This requires that the subordinates are doing work properly. Financial statements are an aid in this respect because they serve the manager is appraising the performance of the subordinates. Actual results achieved by the employees can be measured against the budgeted performance they were expected to achieve and remedial action can be taken if the performance is not up the mark.

 BEXIMCO PHARMACEUTICALS LIMITED

Balance Sheet

As At 31^st December 2011

SHAREHOLDERS’ EQUITY & LIABILITIES    Shareholders’ Equity

BEXIMCO PHARMACEUTICALS LIMITED

Statement of Comprehensive Income

For The December 31st 2011

Operating Expenses:

Number Of Share Used To Complete EPS

251,767,810

251,767,810

 Some are parts:

Financial Reporting and Ratio Analysis Beximco Pharmaceuticals Limited (Part 1)

Financial Reporting and Ratio Analysis Beximco Pharmaceuticals Limited (Part 2)