Each of our activities must benefit and add value to the common wealth of our society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact; namely: our employees, our customers, our business associates, our fellow citizens and our shareholders. BEXIMCO PHARMA BEXIMCO PHARMACEUTICALS LTD. 1 Contents Board and Management Major Achievements of the Company The Profile Beximco Pharma : Building a healthier tomorrow Quality : Our relentless passion Human Resource : Our key to success Training & Development : Keeping everyone up-to-date International Marketing : Expanding the horizon National Export Trophy (Gold) : Record three times winner New Products : Catering to the unmet needs Blockbuster Products : Our major contributors Bextrum : High potency multivitamin-multimineral tablet Anti-HIV and Anti-Cancer Drugs : Standing by the distressed Hi-tech Products : Our endless endeavor Fine Chemicals : Preparing for the post-WTO era Environment : We take responsible care R & D : Innovating tomorrow Annual Sales Conference 2003 Twenty Seventh Annual General Meeting Preparing for the Future : Thinking ahead Value Added Statement 5 Years’Statistics Product List Notice of the Twenty – Eighth Annual General Meeting Chairman’s Statement Statement on Corporate Governance Directors’Report Report of Auditors to the Shareholders Balance Sheet Profit and Loss Account Statement of Changes in Equity Cash Flow Statement Index to the Notes to the Financial Statements - 2003 Notes to the Financial Statements Proxy Form 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 29 34 36 37 38 39 40 41 42 43 Board and Management Board of Directors A S F Rahman Salman F Rahman Iqbal Ahmed M.A. Qasem O.K. Chowdhury Dr. Abdul Alim Khan A.B. Siddiqur Rahman Dr. Farida Huq C. H. Rahman Barrister Faheemul Huq Advocate Ahsanul Karim Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Executive Committee O.K. Chowdhury C. H. Rahman Nadim Shafiqullah Nazmul Hassan Ali Nawaz Management Committee Nazmul Hassan Ali Nawaz Afsar Uddin Ahmed Lutfur Rahman Md. Zakaria S Chowdhury Dr. M. A. Malek Chowdhury Jamal Ahmed Choudhury Company Secretary Md. Asad Ullah 2 3 Contents Board and Management Major Achievements of the Company The Profile Beximco Pharma : Building a healthier tomorrow Quality : Our relentless passion Human Resource : Our key to success Training & Development : Keeping everyone up-to-date International Marketing : Expanding the horizon National Export Trophy (Gold) : Record three times winner New Products : Catering to the unmet needs Blockbuster Products : Our major contributors Bextrum : High potency multivitamin-multimineral tablet Anti-HIV and Anti-Cancer Drugs : Standing by the distressed Hi-tech Products : Our endless endeavor Fine Chemicals : Preparing for the post-WTO era Environment : We take responsible care R & D : Innovating tomorrow Annual Sales Conference 2003 Twenty Seventh Annual General Meeting Preparing for the Future : Thinking ahead Value Added Statement 5 Years’Statistics Product List Notice of the Twenty – Eighth Annual General Meeting Chairman’s Statement Statement on Corporate Governance Directors’Report Report of Auditors to the Shareholders Balance Sheet Profit and Loss Account Statement of Changes in Equity Cash Flow Statement Index to the Notes to the Financial Statements - 2003 Notes to the Financial Statements Proxy Form 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 29 34 36 37 38 39 40 41 42 43 Board and Management Board of Directors A S F Rahman Salman F Rahman Iqbal Ahmed M.A. Qasem O.K. Chowdhury Dr. Abdul Alim Khan A.B. Siddiqur Rahman Dr. Farida Huq C. H. Rahman Barrister Faheemul Huq Advocate Ahsanul Karim Chairman Vice Chairman Director Director Director Director Director Director Director Director Director Executive Committee O.K. Chowdhury C. H. Rahman Nadim Shafiqullah Nazmul Hassan Ali Nawaz Management Committee Nazmul Hassan Ali Nawaz Afsar Uddin Ahmed Lutfur Rahman Md. Zakaria S Chowdhury Dr. M. A. Malek Chowdhury Jamal Ahmed Choudhury Company Secretary Md. Asad Ullah 2 3 Major Achievements of the Company 1976-1985 1976 : Registration of the company 1980 : Started manufacturing and marketing of licensee products of Bayer AG of Germany and Upjohn Inc. of USA 1985 : Listing in the Dhaka Stock Exchange (DSE) as a Public Limited Company 1986-1995 1990 : Commissioning of Basic Chemical Unit 1992 : 1993 : Started export operation with Active Pharmaceutical Ingredients (APIs) First export market operation with finished formulation The Profile 1996-2003 1996 : Introduction of Sustained Release Dosage Form 1997 : Introduction of Suppository Dosage Form Commissioning of Metered Dose Inhaler (MDI) plant Introduction of Metered Dose Nasal Spray First pharmaceutical company of the country achieving ‘National Export Trophy (Gold)’for 1994-95 UNICEF approval of BPL as an enlisted supplier Agreement to manufacture Metered Dose Inhaler (MDI) for Glaxo SmithKline 1998 : 1999 : 2000 : 2001 : Introduction of Small Volume Parenterals (Injectables) Establishment of Analgesic-Antiinflammatory API plant 2002 : Won the first prize of ICAB National Awards 2000 for ‘Best Published Accounts and Reports’in Non- Financial Sector Category The first Bangladeshi company to supply pharmaceuticals to Raffles Hospital- the most prestigious hospital of Singapore 2003 : Received ‘National Export Trophy (Gold)’for consecutive 2 years (1998-99, 1999-2000) Won the Silver prize of ICAB National Awards 2003 for ‘Best Published Accounts and Reports’in Non- Financial Sector Category Won a tender to supply Neoceptin R and Neofloxin to Raffles Hospital of Singapore for the whole year’s consumption Introduced Anti-HIV drugs for the first time in Bangladesh. Diversification into Anti-Cancer therapeutic class Corporate Headquarter Operational Headquarter 17 Dhanmondi R/A, Road No. 2 Dhaka 1205, Bangladesh 19 Dhanmondi R/A, Road No. 7 Dhaka 1205, Bangladesh Factory 126 Kathaldia, Tongi, Gazipur Year of Establishment Commercial Production 1976 1980 Status Business Lines Public Limited Company Manufacturing and marketing of pharmaceutical finished products and Active Pharmaceutical Ingredients (APIs) Overseas Offices & Associates UK, USA, Pakistan, Myanmar, Singapore, Kenya, Yemen, Nepal, Cezch Republic Export Markets Bhutan, Cambodia, Germany, Hong Kong, Iran, Iraq, Malaysia, Russia, South Korea, Srilanka, Thailand, Ukraine, Vietnam Authorized Capital (Taka) 1,000 million Paid-up Capital (Taka) 508.9 million Net Turnover 2003 (Taka) 2,183.8 million Number of Shareholders 47,811 Stock Exchange Listings Dhaka, Chittagong Number of Employees 1,328 4 5 Major Achievements of the Company 1976-1985 1976 : Registration of the company 1980 : Started manufacturing and marketing of licensee products of Bayer AG of Germany and Upjohn Inc. of USA 1985 : Listing in the Dhaka Stock Exchange (DSE) as a Public Limited Company 1986-1995 1990 : Commissioning of Basic Chemical Unit 1992 : 1993 : Started export operation with Active Pharmaceutical Ingredients (APIs) First export market operation with finished formulation The Profile 1996-2003 1996 : Introduction of Sustained Release Dosage Form 1997 : Introduction of Suppository Dosage Form Commissioning of Metered Dose Inhaler (MDI) plant Introduction of Metered Dose Nasal Spray First pharmaceutical company of the country achieving ‘National Export Trophy (Gold)’for 1994-95 UNICEF approval of BPL as an enlisted supplier Agreement to manufacture Metered Dose Inhaler (MDI) for Glaxo SmithKline 1998 : 1999 : 2000 : 2001 : Introduction of Small Volume Parenterals (Injectables) Establishment of Analgesic-Antiinflammatory API plant 2002 : Won the first prize of ICAB National Awards 2000 for ‘Best Published Accounts and Reports’in Non- Financial Sector Category The first Bangladeshi company to supply pharmaceuticals to Raffles Hospital- the most prestigious hospital of Singapore 2003 : Received ‘National Export Trophy (Gold)’for consecutive 2 years (1998-99, 1999-2000) Won the Silver prize of ICAB National Awards 2003 for ‘Best Published Accounts and Reports’in Non- Financial Sector Category Won a tender to supply Neoceptin R and Neofloxin to Raffles Hospital of Singapore for the whole year’s consumption Introduced Anti-HIV drugs for the first time in Bangladesh. Diversification into Anti-Cancer therapeutic class Corporate Headquarter Operational Headquarter 17 Dhanmondi R/A, Road No. 2 Dhaka 1205, Bangladesh 19 Dhanmondi R/A, Road No. 7 Dhaka 1205, Bangladesh Factory 126 Kathaldia, Tongi, Gazipur Year of Establishment Commercial Production 1976 1980 Status Business Lines Public Limited Company Manufacturing and marketing of pharmaceutical finished products and Active Pharmaceutical Ingredients (APIs) Overseas Offices & Associates UK, USA, Pakistan, Myanmar, Singapore, Kenya, Yemen, Nepal, Cezch Republic Export Markets Bhutan, Cambodia, Germany, Hong Kong, Iran, Iraq, Malaysia, Russia, South Korea, Srilanka, Thailand, Ukraine, Vietnam Authorized Capital (Taka) 1,000 million Paid-up Capital (Taka) 508.9 million Net Turnover 2003 (Taka) 2,183.8 million Number of Shareholders 47,811 Stock Exchange Listings Dhaka, Chittagong Number of Employees 1,328 4 5 Beximco Pharma Building a healthier tomorrow BPL’s history is one of innovation and adventure, of risks taken and bold decisions made towards a noble purpose- building a healthier tomorrow where our fellow citizens can live longer, healthier and better. In 2003, we have redefined success as something broader than mere performance in the marketplace and have taken initiatives to prepare for the future. BPL is the first local company who dared to invest in manufacturing Active Pharmaceutical Ingredients (APIs) and to enter foreign markets of diversified culture and stringent regulatory environment. Over the last decade, the risk taken has paid us off. Now our capability in manufacturing APIs and expertise in exploration of foreign markets have placed us in a relatively better position over other local companies to face the post-WTO era. Above all what adds more to our pride is our commitment to the society. This is reflected in our launching of Anti- HIV/AIDS drugs first ever in Bangladesh, which was further reinforced through the introduction of anti-cancer drugs. With our continuous improvement in performance and commitment to our customers, we are confident to strengthen our position in the marketplace further and increase the shareholders’ value. Quality Our relentless passion Quality is our relentless passion, ingrained in our values and in all what we do. Beximco Pharma is committed to cater to the growing health care needs of the nation. This commitment demands immense social responsibility of ensuring quality medicines of the highest purity, proper stability, excellent safety and superb efficacy. At every stage of production, stringent control mechanism involving raw material testing, in-process quality control, packaging, labeling, finished product testing as well as stability monitoring and documentation is maintained. Standard Operating Procedures (SOPs) developed according to the cGMP guidelines of WHO are being strictly followed in every step to ensure full compliance. BPL QC lab is equipped with the most modern and sophisticated equipment like Atomic Absorption Spectrophotometer (AAS), Nuclear Magnetic Resonance (NMR) Spectrophotometer, High Performance Liquid Chromatography (HPLC), Gas Chromatography (GC), Infrared (IR) Spectrophotometer, Ultraviolet (UV) Spectrophotometer, Homogenizer, In-vitro Bioavailabilty Tester, Lung Simulator, Disintegrator, Dissolution Tester, & many other computer-aided quality control instruments. Thus BPL succeeded in gaining trust and confidence of the doctors and patients all over the country. 6 7 Beximco Pharma Building a healthier tomorrow BPL’s history is one of innovation and adventure, of risks taken and bold decisions made towards a noble purpose- building a healthier tomorrow where our fellow citizens can live longer, healthier and better. In 2003, we have redefined success as something broader than mere performance in the marketplace and have taken initiatives to prepare for the future. BPL is the first local company who dared to invest in manufacturing Active Pharmaceutical Ingredients (APIs) and to enter foreign markets of diversified culture and stringent regulatory environment. Over the last decade, the risk taken has paid us off. Now our capability in manufacturing APIs and expertise in exploration of foreign markets have placed us in a relatively better position over other local companies to face the post-WTO era. Above all what adds more to our pride is our commitment to the society. This is reflected in our launching of Anti- HIV/AIDS drugs first ever in Bangladesh, which was further reinforced through the introduction of anti-cancer drugs. With our continuous improvement in performance and commitment to our customers, we are confident to strengthen our position in the marketplace further and increase the shareholders’ value. Quality Our relentless passion Quality is our relentless passion, ingrained in our values and in all what we do. Beximco Pharma is committed to cater to the growing health care needs of the nation. This commitment demands immense social responsibility of ensuring quality medicines of the highest purity, proper stability, excellent safety and superb efficacy. At every stage of production, stringent control mechanism involving raw material testing, in-process quality control, packaging, labeling, finished product testing as well as stability monitoring and documentation is maintained. Standard Operating Procedures (SOPs) developed according to the cGMP guidelines of WHO are being strictly followed in every step to ensure full compliance. BPL QC lab is equipped with the most modern and sophisticated equipment like Atomic Absorption Spectrophotometer (AAS), Nuclear Magnetic Resonance (NMR) Spectrophotometer, High Performance Liquid Chromatography (HPLC), Gas Chromatography (GC), Infrared (IR) Spectrophotometer, Ultraviolet (UV) Spectrophotometer, Homogenizer, In-vitro Bioavailabilty Tester, Lung Simulator, Disintegrator, Dissolution Tester, & many other computer-aided quality control instruments. Thus BPL succeeded in gaining trust and confidence of the doctors and patients all over the country. 6 7 Human Resource Our key to success At BPL, we always believe that people is the most valuable asset. BPL makes considerable investments in attracting and developing competent professional human resources. BPL not only fosters entrepreneurship, but also consciously encourages intrapreneurship in its organizational environment. This leads to innovation and creativity transformed into new products, services and new ways of doing things. Over the years, the company has been successful in providing an environment and culture that promotes value and is run by customer-driven philosophy. To get the most out of our human resources, BPL implements programs like decentralization, job enrichment and job rotation. The extent of empowerment enjoyed by our people at various levels of the organization enables each employee from the very bottom to the top, to contribute to the overall momentum of the company. Keeping pace with the latest management concepts worldwide, BPL employs cross-functional teams in activities such as new product development, expansion and ventures into new project. At BPL, employees work in flexible and dynamic environment that helps to convert threats to opportunities in today’s ever-changing business environment. BPL human resources include over 860 young and highly motivated executives from different cultures and diverse disciplines such as Pharmacy, Chemistry, Biochemistry, Microbiology, Medicine, Engineering, Business Administration, Finance, Accounting etc. The talent, expertise and hard work of our employees drive Beximco Pharma towards achieving its goals and objectives. Training & Development Keeping everyone up-to-date One of the driving forces of Beximco Pharma is its highly skilled human resources. BPL is continuously striving to explore the core competencies of the employees to face the challenges of the competitive environment. Continuous learning had been enforced as a motivation tool to upgrade current level of knowledge and skills of the employees. BPL also ensures an atmosphere that offers a better learning ground for its employees and believes in upgrading its personnel through continuous education program. At BPL, extended and enhanced in-house & external training programs are being conducted round the year. During 2003, BPL employees participated in various training programs that include - Pharmaceutical marketing situation beyond 2005 Company formation, regulatory compliance and company meeting Industrial control and mechatronics Continuous improvement (Kaizen) and changing behavior 10 Commandments of GMP Presentation skills General guidelines of SOP Sanitation, hygiene and environment control Maintenance of equipments, calibration and validation Fire prevention and safety Industrial automation Coating technology Technology transfer 8 9 Human Resource Our key to success At BPL, we always believe that people is the most valuable asset. BPL makes considerable investments in attracting and developing competent professional human resources. BPL not only fosters entrepreneurship, but also consciously encourages intrapreneurship in its organizational environment. This leads to innovation and creativity transformed into new products, services and new ways of doing things. Over the years, the company has been successful in providing an environment and culture that promotes value and is run by customer-driven philosophy. To get the most out of our human resources, BPL implements programs like decentralization, job enrichment and job rotation. The extent of empowerment enjoyed by our people at various levels of the organization enables each employee from the very bottom to the top, to contribute to the overall momentum of the company. Keeping pace with the latest management concepts worldwide, BPL employs cross-functional teams in activities such as new product development, expansion and ventures into new project. At BPL, employees work in flexible and dynamic environment that helps to convert threats to opportunities in today’s ever-changing business environment. BPL human resources include over 860 young and highly motivated executives from different cultures and diverse disciplines such as Pharmacy, Chemistry, Biochemistry, Microbiology, Medicine, Engineering, Business Administration, Finance, Accounting etc. The talent, expertise and hard work of our employees drive Beximco Pharma towards achieving its goals and objectives. Training & Development Keeping everyone up-to-date One of the driving forces of Beximco Pharma is its highly skilled human resources. BPL is continuously striving to explore the core competencies of the employees to face the challenges of the competitive environment. Continuous learning had been enforced as a motivation tool to upgrade current level of knowledge and skills of the employees. BPL also ensures an atmosphere that offers a better learning ground for its employees and believes in upgrading its personnel through continuous education program. At BPL, extended and enhanced in-house & external training programs are being conducted round the year. During 2003, BPL employees participated in various training programs that include - Pharmaceutical marketing situation beyond 2005 Company formation, regulatory compliance and company meeting Industrial control and mechatronics Continuous improvement (Kaizen) and changing behavior 10 Commandments of GMP Presentation skills General guidelines of SOP Sanitation, hygiene and environment control Maintenance of equipments, calibration and validation Fire prevention and safety Industrial automation Coating technology Technology transfer 8 9 International Marketing Expanding the horizon Ever since BPL started exporting pharmaceutical products in 1992, it always remained as the pioneer pharmaceutical company in all its activities related to international marketing. BPL is the pioneer company in Bangladesh to enter Singapore- one of the most stringent and regulated markets in Asia. It also pioneered to enter into CIS countries and Africa. In international market, we have our own offices with BPL people working in countries like Kenya, Myanmar, Pakistan, Nepal and Singapore. We view our presence in international arena as part of our objective to be the first truly global pharmaceutical company emerging from Bangladesh. In 2003, BPL’s major emphasis in international marketing was to consolidate and grow in all its existing overseas markets as well as to enter new markets to explore new opportunities. Our brand differentiation strategy once again proved to be very effective and efficient in the global market. We have had very good growth in our major markets including Singapore, Kenya, Myanmar and Yemen. In 2003, we won a tender for Neofloxin and Neoceptin R for the whole year’s consumption of Raffles Hospital- the most prestigious hospital in Singapore. With a vision to consolidate our presence in Pakistan, we have gone through a massive re-organization of our marketing team and are in the process of introducing 57 new products to increase our export sales significantly. Recently, we entered Nepal market with an aggressive marketing strategy, which is expected to yield good results. BPL will continue to deploy all-out efforts and resources to develop new overseas markets in Asia, Africa, Latin America and Europe. Today, international marketing horizon of BPL is expanded over 22 countries, which manifests global acceptance of BPL’s world class product quality. National Export Trophy (Gold) Record three times winner BPL is the first company to receive National Export Trophy (Gold) in 1994-1995, which was the very first year of introduction of such award by the government of Bangladesh. This is the highest national recognition for excellence in export. Beximco Pharmaceuticals Ltd. has also been awarded National Export Trophy (Gold) recently for two consecutive years 1998-1999 & 1999-2000. It is the only company to be the record 3 times winner of this award for its outstanding export performance. National Export Trophy GOLD 1994-1995 National Export Trophy GOLD 1998-1999 National Export Trophy GOLD 1999-2000 10 11 International Marketing Expanding the horizon Ever since BPL started exporting pharmaceutical products in 1992, it always remained as the pioneer pharmaceutical company in all its activities related to international marketing. BPL is the pioneer company in Bangladesh to enter Singapore- one of the most stringent and regulated markets in Asia. It also pioneered to enter into CIS countries and Africa. In international market, we have our own offices with BPL people working in countries like Kenya, Myanmar, Pakistan, Nepal and Singapore. We view our presence in international arena as part of our objective to be the first truly global pharmaceutical company emerging from Bangladesh. In 2003, BPL’s major emphasis in international marketing was to consolidate and grow in all its existing overseas markets as well as to enter new markets to explore new opportunities. Our brand differentiation strategy once again proved to be very effective and efficient in the global market. We have had very good growth in our major markets including Singapore, Kenya, Myanmar and Yemen. In 2003, we won a tender for Neofloxin and Neoceptin R for the whole year’s consumption of Raffles Hospital- the most prestigious hospital in Singapore. With a vision to consolidate our presence in Pakistan, we have gone through a massive re-organization of our marketing team and are in the process of introducing 57 new products to increase our export sales significantly. Recently, we entered Nepal market with an aggressive marketing strategy, which is expected to yield good results. BPL will continue to deploy all-out efforts and resources to develop new overseas markets in Asia, Africa, Latin America and Europe. Today, international marketing horizon of BPL is expanded over 22 countries, which manifests global acceptance of BPL’s world class product quality. National Export Trophy (Gold) Record three times winner BPL is the first company to receive National Export Trophy (Gold) in 1994-1995, which was the very first year of introduction of such award by the government of Bangladesh. This is the highest national recognition for excellence in export. Beximco Pharmaceuticals Ltd. has also been awarded National Export Trophy (Gold) recently for two consecutive years 1998-1999 & 1999-2000. It is the only company to be the record 3 times winner of this award for its outstanding export performance. National Export Trophy GOLD 1994-1995 National Export Trophy GOLD 1998-1999 National Export Trophy GOLD 1999-2000 10 11 New Products Catering to the unmet needs Introduction of new products and their successful establishment in the market give a competitive edge, which augment company’s growth. Keeping this in mind, BPL is continuously adding new products of different therapeutic classes to its portfolio. During 2003, BPL introduced twenty-six new brands of forty dosage forms and strengths. New Dosage Forms & Strengths Products Indication Products Indication Alendon 70 tablet Arbit 150 tablet Arbit 75 tablet Avilam tablet Avifanz tablet Avifix tablet Bextrum tablet Cerivin tablet Diavix tablet Efol ER capsule Eplon 10 tablet Eplon 5 tablet Evo 250 tablet Evo 500 tablet Osteoporosis Hypertention Hypertention AIDS AIDS AIDS Multivitamin-multimineral supplementation Stroke & memory disturbance AIDS Vitamin-mineral supplementation Insomnia Insomnia Bacterial infection Bacterial infection Fertil tablet Frenxit tablet Fusidic Plus ointment Informet LA tablet Ipramid inhaler Momento tablet Napa drops Neokit Neoceptin R syrup Neodrop Noscab cream Opton tablet Primace 1.25 capsule Primace 2.5 capsule Primace 5 capsule Protolan 15 capsule Protolan 30 capsule Recox 50 tablet Reumafen suspension Tamona 10 tablet Tamona 20 tablet Terbex cream Triovix tablet Zedex DS syrup Zocil 50 tablet Zocil 100 tablet Anovulation & infertility Anxiety and depression Atopic dermatitis Diabetes COPD Allergic rhinitis Pain & fever H. pylori associated ulcer Gastric acidity and ulcer Neonatal colic Scabies Gastric and duodenal ulcer Hypertention Hypertention Hypertention Gastric and duodenal ulcer Gastric and duodenal ulcer Arthritis Pain & fever Breast cancer Breast cancer Fungal infection AIDS Zinc supplementation Intermittent claudication Intermittent claudication Blockbuster products Our major contributors Success of a pharmaceutical company depends on how effectively it establishes its brands in the market. The excellent blending of world class manufacturing technology and innovative marketing strategies made BPL successful in achieving brand equity for its products. As a result the number one product by value and the number one product by unit in Bangladesh Pharmaceutical Market and also the highest selling drug in the cardiovascular class belong to BPL. Neoceptin R - the number one product by value One of the major revenue earning products of BPL is Neoceptin R. It is also the highest selling product by value and is the undisputed leader in Bangladesh Pharmaceutical Market. Napa - the number one product by unit Napa is the highest selling product by unit. Napa has become a household brand in the mind of physicians as well as consumers of Bangladesh. Amdocal - the highest selling drug in cardiovascular market Amdocal is one of the most prestigious and revenue earning products of BPL. It is the highest selling product in the cardiovascular market. 12 13 New Products Catering to the unmet needs Introduction of new products and their successful establishment in the market give a competitive edge, which augment company’s growth. Keeping this in mind, BPL is continuously adding new products of different therapeutic classes to its portfolio. During 2003, BPL introduced twenty-six new brands of forty dosage forms and strengths. New Dosage Forms & Strengths Products Indication Products Indication Alendon 70 tablet Arbit 150 tablet Arbit 75 tablet Avilam tablet Avifanz tablet Avifix tablet Bextrum tablet Cerivin tablet Diavix tablet Efol ER capsule Eplon 10 tablet Eplon 5 tablet Evo 250 tablet Evo 500 tablet Osteoporosis Hypertention Hypertention AIDS AIDS AIDS Multivitamin-multimineral supplementation Stroke & memory disturbance AIDS Vitamin-mineral supplementation Insomnia Insomnia Bacterial infection Bacterial infection Fertil tablet Frenxit tablet Fusidic Plus ointment Informet LA tablet Ipramid inhaler Momento tablet Napa drops Neokit Neoceptin R syrup Neodrop Noscab cream Opton tablet Primace 1.25 capsule Primace 2.5 capsule Primace 5 capsule Protolan 15 capsule Protolan 30 capsule Recox 50 tablet Reumafen suspension Tamona 10 tablet Tamona 20 tablet Terbex cream Triovix tablet Zedex DS syrup Zocil 50 tablet Zocil 100 tablet Anovulation & infertility Anxiety and depression Atopic dermatitis Diabetes COPD Allergic rhinitis Pain & fever H. pylori associated ulcer Gastric acidity and ulcer Neonatal colic Scabies Gastric and duodenal ulcer Hypertention Hypertention Hypertention Gastric and duodenal ulcer Gastric and duodenal ulcer Arthritis Pain & fever Breast cancer Breast cancer Fungal infection AIDS Zinc supplementation Intermittent claudication Intermittent claudication Blockbuster products Our major contributors Success of a pharmaceutical company depends on how effectively it establishes its brands in the market. The excellent blending of world class manufacturing technology and innovative marketing strategies made BPL successful in achieving brand equity for its products. As a result the number one product by value and the number one product by unit in Bangladesh Pharmaceutical Market and also the highest selling drug in the cardiovascular class belong to BPL. Neoceptin R - the number one product by value One of the major revenue earning products of BPL is Neoceptin R. It is also the highest selling product by value and is the undisputed leader in Bangladesh Pharmaceutical Market. Napa - the number one product by unit Napa is the highest selling product by unit. Napa has become a household brand in the mind of physicians as well as consumers of Bangladesh. Amdocal - the highest selling drug in cardiovascular market Amdocal is one of the most prestigious and revenue earning products of BPL. It is the highest selling product in the cardiovascular market. 12 13 Bextrum High potency multivitamin-multimineral tablet In 2003, the long-awaited need has been fulfilled by the introduction of the truly high- potency multivitamin-multimineral tablet ‘Bextrum’, which is a balanced combination of 20 ingredients including Iron, Zinc and Folic Acid. Changing lifestyle and the use of convenient food including ready-to-eat meals, meals eaten outside may not contain important micronutrients essential for healthy life. Besides, environmental, economic and lifestyle stressors as well as other physiological factors can increase the need for essential nutrients beyond what may be supplied by a balanced diet. Recent evidence has shown that sub-optimal levels of vitamins may cause chronic diseases such as cardiovascular diseases, cancer, and osteoporosis. Sub-optimal intake of some vitamins is common in the general population, specially in the elderly. Most people do not consume the required amount of all vitamins by diet alone. Bextrum- a high potency multivitamin-multimineral tablet can fill the nutrient gaps, optimize function, protect health, and help prevent diseases. Daily intake of Bextrum tablet reduces the risk of chronic diseases and also improves the immune system reducing the risk of infectious illness by half. Bextrum also reduces the risk of complications during pregnancy and improves the likelihood of a healthy baby. It helps keep everyone healthy and active. Anti-HIV and Anti-Cancer Drugs Standing by the distressed BPL is always committed to stand by the nation at the time of need. As a part of its commitment, BPL has introduced 5 anti- HIV/AIDS products: Avilam (Lamivudine), Diavix (Lamivudine + Zidovudine), Triovix (Lamivudine + Zidovudine + Nevirapine), Avifix (Nelfinavir) and Avifanz (Efavirenz). The anti-cancer drug Tamona (Tamoxifen) has also been introduced with the same view. BPL’s range of anti-HIV drugs would definitely help physicians to treat the HIV positive patients according to the WHO guidelines and will also help to design a long term treatment plan suitable for specific requirement of the patients. Despite commercial non-viability of anti-HIV/AIDS drugs at the moment, BPL has pioneered this venture as a service to the distressed citizens of the country. Apart from building mass awareness regarding HIV infection, related consequences and ways of prevention, BPLis also working with government and non-government organizations to have its role against this deadly disease. The gesture of encouragement, support and confidence being extended by the esteemed healthcare community and valued citizens of the country would definitely inspire BPL to become a global player with these products in future. Benefit of BPL’s activities is not only limited within the country but it would also help mitigate the sufferings of millions in the developing and least developed countries. Moreover, manufacturing and introduction of anti-HIV/AIDS and anti-cancer drugs by BPL will undoubtedly uplift the image of Bangladesh in the global arena as a sophisticated and high quality manufacturer of life saving drugs. 14 15 Bextrum High potency multivitamin-multimineral tablet In 2003, the long-awaited need has been fulfilled by the introduction of the truly high- potency multivitamin-multimineral tablet ‘Bextrum’, which is a balanced combination of 20 ingredients including Iron, Zinc and Folic Acid. Changing lifestyle and the use of convenient food including ready-to-eat meals, meals eaten outside may not contain important micronutrients essential for healthy life. Besides, environmental, economic and lifestyle stressors as well as other physiological factors can increase the need for essential nutrients beyond what may be supplied by a balanced diet. Recent evidence has shown that sub-optimal levels of vitamins may cause chronic diseases such as cardiovascular diseases, cancer, and osteoporosis. Sub-optimal intake of some vitamins is common in the general population, specially in the elderly. Most people do not consume the required amount of all vitamins by diet alone. Bextrum- a high potency multivitamin-multimineral tablet can fill the nutrient gaps, optimize function, protect health, and help prevent diseases. Daily intake of Bextrum tablet reduces the risk of chronic diseases and also improves the immune system reducing the risk of infectious illness by half. Bextrum also reduces the risk of complications during pregnancy and improves the likelihood of a healthy baby. It helps keep everyone healthy and active. Anti-HIV and Anti-Cancer Drugs Standing by the distressed BPL is always committed to stand by the nation at the time of need. As a part of its commitment, BPL has introduced 5 anti- HIV/AIDS products: Avilam (Lamivudine), Diavix (Lamivudine + Zidovudine), Triovix (Lamivudine + Zidovudine + Nevirapine), Avifix (Nelfinavir) and Avifanz (Efavirenz). The anti-cancer drug Tamona (Tamoxifen) has also been introduced with the same view. BPL’s range of anti-HIV drugs would definitely help physicians to treat the HIV positive patients according to the WHO guidelines and will also help to design a long term treatment plan suitable for specific requirement of the patients. Despite commercial non-viability of anti-HIV/AIDS drugs at the moment, BPL has pioneered this venture as a service to the distressed citizens of the country. Apart from building mass awareness regarding HIV infection, related consequences and ways of prevention, BPLis also working with government and non-government organizations to have its role against this deadly disease. The gesture of encouragement, support and confidence being extended by the esteemed healthcare community and valued citizens of the country would definitely inspire BPL to become a global player with these products in future. Benefit of BPL’s activities is not only limited within the country but it would also help mitigate the sufferings of millions in the developing and least developed countries. Moreover, manufacturing and introduction of anti-HIV/AIDS and anti-cancer drugs by BPL will undoubtedly uplift the image of Bangladesh in the global arena as a sophisticated and high quality manufacturer of life saving drugs. 14 15 Hi-tech Products Our endless endeavor Our continued endeavor to be the pioneer in introducing hi-tech products for better patient care, made it possible to manufacture Inhalation Aerosols, Suppositories, Nasal Sprays, Anti-Cancer & Anti-AIDS drugs for the first time in Bangladesh. The hi-tech products are manufactured with state-of-the-art technology and world class facilities to ensure highest quality. It is the need of the people which is our prime concern, which leads us to undertake pioneering works and reach greater heights. Inhalation Aerosol : Aeronid Inhaler Azmasol Inhaler Azmasol Refill Can Bexitrol Inhaler Decomit 100 Inhaler Decomit 250 Inhaler Ipramid Inhaler Suppository : Napa 125 Suppository Napa 250 Suppository Napa 500 Suppository Ultrafen 12.5 Suppository Ultrafen 50 Suppository Nasal Spray : Nazolin Nasal Spray Decomit Nasal Spray Fine Chemicals Preparing for the post-WTO era BPL’s pioneering move to diversify business into manufacture of Active Pharmaceuticals Ingredients (APIs) in 1990 set a new milestone for the pharmaceutical industry of Bangladesh. Besides exporting to the countries of the Asian market such as Vietnam, Malaysia, Taiwan etc., BPL’s world class APIs were also exported to countries of European market like Germany. APIs like Celecoxib, Rofecoxib, Ciprofloxacin, Ranitidine, Amlodipine, Fluconazole, Cephalexin, Diclofenac Sodium and Cetirizine, having good sales potentials have enriched our portfolio in the recent years. A number of other high-value high-margin products are in the R & D pipeline. With the mandatory patent protection in developed and developing countries coming into effect after 2005, a capacity build-up in the backward linkage bulk drug manufacturing facility would be an added advantage for BPL in the post WTO era. 16 17 Hi-tech Products Our endless endeavor Our continued endeavor to be the pioneer in introducing hi-tech products for better patient care, made it possible to manufacture Inhalation Aerosols, Suppositories, Nasal Sprays, Anti-Cancer & Anti-AIDS drugs for the first time in Bangladesh. The hi-tech products are manufactured with state-of-the-art technology and world class facilities to ensure highest quality. It is the need of the people which is our prime concern, which leads us to undertake pioneering works and reach greater heights. Inhalation Aerosol : Aeronid Inhaler Azmasol Inhaler Azmasol Refill Can Bexitrol Inhaler Decomit 100 Inhaler Decomit 250 Inhaler Ipramid Inhaler Suppository : Napa 125 Suppository Napa 250 Suppository Napa 500 Suppository Ultrafen 12.5 Suppository Ultrafen 50 Suppository Nasal Spray : Nazolin Nasal Spray Decomit Nasal Spray Fine Chemicals Preparing for the post-WTO era BPL’s pioneering move to diversify business into manufacture of Active Pharmaceuticals Ingredients (APIs) in 1990 set a new milestone for the pharmaceutical industry of Bangladesh. Besides exporting to the countries of the Asian market such as Vietnam, Malaysia, Taiwan etc., BPL’s world class APIs were also exported to countries of European market like Germany. APIs like Celecoxib, Rofecoxib, Ciprofloxacin, Ranitidine, Amlodipine, Fluconazole, Cephalexin, Diclofenac Sodium and Cetirizine, having good sales potentials have enriched our portfolio in the recent years. A number of other high-value high-margin products are in the R & D pipeline. With the mandatory patent protection in developed and developing countries coming into effect after 2005, a capacity build-up in the backward linkage bulk drug manufacturing facility would be an added advantage for BPL in the post WTO era. 16 17 Environment We take responsible care Beximco Pharmaceuticals Ltd. is highly committed to provide an eco- friendly environment to ensure a healthier society for a healthier tomorrow. Maintaining the ecological balance is of paramount concern of BPL. In order to achieve this objective, BPL reduces the hazardous impact on the environment through operational excellence and carefully designed facilities. Keeping the earth clean is our primary concern. BPL earnestly admits responsibility of caring for the environment and importance of reducing the environmental effects of manufacturing activities to a practical minimum. R & D Innovating tomorrow BPL’s R & D team is committed to the development and introduction of novel drugs and drug delivery systems that make BPL a front-runner in the nation’s pharmaceutical industry. The R & D team comprises of highly qualified and trained technical personnel continuously striving for product and process innovation and upgradation. The sincere and relentless effort of the R & D team has taken the company a step further through introduction of high tech Anti-AIDS and Anti-Cancer products in 2003. A good number of APIs are also in the development pipeline to ensure availability of raw materials in the post-WTO era. With our continuous investment in R & D and cutting-edge technology, BPL is moving forward to meet tomorrow’s healthcare needs. 18 19 Environment We take responsible care Beximco Pharmaceuticals Ltd. is highly committed to provide an eco- friendly environment to ensure a healthier society for a healthier tomorrow. Maintaining the ecological balance is of paramount concern of BPL. In order to achieve this objective, BPL reduces the hazardous impact on the environment through operational excellence and carefully designed facilities. Keeping the earth clean is our primary concern. BPL earnestly admits responsibility of caring for the environment and importance of reducing the environmental effects of manufacturing activities to a practical minimum. R & D Innovating tomorrow BPL’s R & D team is committed to the development and introduction of novel drugs and drug delivery systems that make BPL a front-runner in the nation’s pharmaceutical industry. The R & D team comprises of highly qualified and trained technical personnel continuously striving for product and process innovation and upgradation. The sincere and relentless effort of the R & D team has taken the company a step further through introduction of high tech Anti-AIDS and Anti-Cancer products in 2003. A good number of APIs are also in the development pipeline to ensure availability of raw materials in the post-WTO era. With our continuous investment in R & D and cutting-edge technology, BPL is moving forward to meet tomorrow’s healthcare needs. 18 19 Annual Sales Conference 2003 The Annual Sales Conference 2003 was held at Bangladesh China Friendship Conference Center on 30th December 2003. Vice Chairman of the company Mr. Salman F Rahman chaired the meeting. Mr. Nazmul Hassan, Chief Executive Officer inaugurated the congregation. Director Marketing; Executive Director, Sales; Senior Manager, Product Promotion and Manager, Medical Department were also present. More than 600 marketing and sales people from all over the country attended the conference. During the morning session of the conference achievements of 2003 and strategies of 2004 were discussed. In the evening session, Mr. Nazmul Hassan distributed prizes and crests among the top achievers. The prize distribution ceremony was followed by dinner and colorful cultural show. Twenty Seventh Annual General Meeting The 27th Annual General Meeting of the shareholders of BPL was held on 24th June 2003. Around 9,500 shareholders attended the meeting. Mr. A S F Rahman, Chairman of the Board of Directors presided over the meeting. The Chairman thanked the shareholders for their interest and confidence upon the company. The shareholders were informed about the performance of the company in 2002. Strategies and future vision of the company were also briefed at the AGM. The meeting approved 5% cash dividend and 15% stock dividend (Bonus Shares) for the year 2002. 20 21 Annual Sales Conference 2003 The Annual Sales Conference 2003 was held at Bangladesh China Friendship Conference Center on 30th December 2003. Vice Chairman of the company Mr. Salman F Rahman chaired the meeting. Mr. Nazmul Hassan, Chief Executive Officer inaugurated the congregation. Director Marketing; Executive Director, Sales; Senior Manager, Product Promotion and Manager, Medical Department were also present. More than 600 marketing and sales people from all over the country attended the conference. During the morning session of the conference achievements of 2003 and strategies of 2004 were discussed. In the evening session, Mr. Nazmul Hassan distributed prizes and crests among the top achievers. The prize distribution ceremony was followed by dinner and colorful cultural show. Twenty Seventh Annual General Meeting The 27th Annual General Meeting of the shareholders of BPL was held on 24th June 2003. Around 9,500 shareholders attended the meeting. Mr. A S F Rahman, Chairman of the Board of Directors presided over the meeting. The Chairman thanked the shareholders for their interest and confidence upon the company. The shareholders were informed about the performance of the company in 2002. Strategies and future vision of the company were also briefed at the AGM. The meeting approved 5% cash dividend and 15% stock dividend (Bonus Shares) for the year 2002. 20 21 Preparing for the Future... Thinking ahead... At BPL, information technology is used as a decision support system and coordination tool to facilitate human and machine performance. The state-of-the-art management information system (MIS) forms a common information platform for the organization so that everything - from the production floor to the sales people working in a rural area, from the quality assurance department to the distribution operation through fifteen depots throughout the country - is interconnected. We are the leading pharmaceutical company in promoting products and providing medical information with CD-ROM, Kiosk and Internet Website. Recently our new website "beximco-pharma.com" has been re-launched with full-fledged up- to-date information, innovative features and interactive facilities to provide comprehensive coverage of our ongoing activities. To enhance international competitiveness, we are in the final stage of construction of the new US FDA standard formulation plant. Also the expansion of our API portfolio will enable us to ensure effective backward integration. Thus at BPL, we have created a "Virtual Future" that enables us to become proactive rather than reactive against future challenges posed by a changing world economy and the advent of the information age. Value Added Statement Turnover & Other Income Brought-in-Materials & Services Value Added Applications Duties & Taxes to Government Exchequer Salaries and Benefits to Employees Interest to Lenders Dividend to Shareholders Retained by the Company Figures in Taka 2003 % 2002 % 2,534,893,735 (1,387,826,683) 1,147,067,052 2,914,243,999 (1,603,475,538) 1,310,768,461 443,504,582 237,635,125 156,601,506 101,775,000 207,550,839 38 21 14 9 18 488,903,190 221,178,053 170,994,495 88,500,000 341,192,723 37 17 13 7 26 Total 1,147,067,052 100 1,310,768,461 100 9% 14% 2003 38% 21% 13% 7% 17% 2002 37% 18% 26% Retained by the Company Salaries and Benefits to Employees Interest to Lenders Dividend to Shareholders Duties & Taxes to Government Exchequer 22 23 Preparing for the Future... Thinking ahead... At BPL, information technology is used as a decision support system and coordination tool to facilitate human and machine performance. The state-of-the-art management information system (MIS) forms a common information platform for the organization so that everything - from the production floor to the sales people working in a rural area, from the quality assurance department to the distribution operation through fifteen depots throughout the country - is interconnected. We are the leading pharmaceutical company in promoting products and providing medical information with CD-ROM, Kiosk and Internet Website. Recently our new website "beximco-pharma.com" has been re-launched with full-fledged up- to-date information, innovative features and interactive facilities to provide comprehensive coverage of our ongoing activities. To enhance international competitiveness, we are in the final stage of construction of the new US FDA standard formulation plant. Also the expansion of our API portfolio will enable us to ensure effective backward integration. Thus at BPL, we have created a "Virtual Future" that enables us to become proactive rather than reactive against future challenges posed by a changing world economy and the advent of the information age. Value Added Statement Turnover & Other Income Brought-in-Materials & Services Value Added Applications Duties & Taxes to Government Exchequer Salaries and Benefits to Employees Interest to Lenders Dividend to Shareholders Retained by the Company Figures in Taka 2003 % 2002 % 2,534,893,735 (1,387,826,683) 1,147,067,052 2,914,243,999 (1,603,475,538) 1,310,768,461 443,504,582 237,635,125 156,601,506 101,775,000 207,550,839 38 21 14 9 18 488,903,190 221,178,053 170,994,495 88,500,000 341,192,723 37 17 13 7 26 Total 1,147,067,052 100 1,310,768,461 100 9% 14% 2003 38% 21% 13% 7% 17% 2002 37% 18% 26% Retained by the Company Salaries and Benefits to Employees Interest to Lenders Dividend to Shareholders Duties & Taxes to Government Exchequer 22 23 5 Years’ Statistics Particulars 2003 2002 2001 2000 1999 Amounts in thousand Taka Authorized Capital Paid up Capital Total Turnover Export Turnover Gross Margin Profit Before Tax Net Profit Fixed Assets at cost Shareholders' Equity Dividend Return on Paid up Capital Equity Per Share Earnings Per Share Market Price Per Share Price Earnings Ratio (Time) Number of Shareholders General Public & Sponsors Foreign Investors ICB & Investors’Account Human Resources Number of Employees Officers Staff 1,000,000 508,875 2,183,830 59,594 828,081 263,619 224,643 6,669,824 4,643,615 20% 52% 91 4.41 39.72 9.00 47,811 35,568 42 12,201 1,328 862 466 1,000,000 442,500 2,508,788 50,284 888,295 362,232 341,680 5,512,974 4,441,096 20% 82% 100 6.71 41.83 6.23 49,960 37,317 43 12,600 1,218 747 471 1,000,000 442,500 2,401,241 47,325 942,133 430,420 401,780 5,141,780 4,165,791 15% 97% 94 9.08 49.50 5.45 50,367 37,568 43 12,756 1,151 695 456 1,000,000 442,500 2,452,524 44,268 895,783 422,644 398,295 4,062,660 3,764,011 20% 96% 85 9.00 66.90 7.43 50,618 38,447 43 12,128 1,047 581 466 1,000,000 442,500 2,398,985 35,846 816,089 413,312 386,576 3,759,880 3,454,217 20% 93% 78 8.74 32.31 3.70 50,733 38,426 43 12,264 1,010 544 466 Shareholders’ Equity 4,441 4,644 3,454 3,764 4,166 1999 2000 2001 2002 2003 Year Product List Brand name Dosage form Generic name & strength Analgesic/Antipyretic Capsule Lucidol Napa Tablet Syrup Drops Suppository Antacid & Antiflatulent Flatameal-DS Tablet Tramadol HCl 50 mg Paracetamol 500 mg Paracetamol 120 mg/5 ml Paracetamol 80 mg/ml Paracetamol 125 mg Paracetamol 250 mg Paracetamol 500 mg Al Hydroxide 400 mg, Mg Hydroxide 400 mg, Simethicone 30 mg Suspension Al Oxide 200 mg, Mg Hydroxide 400 mg, Tablet Suspension Simethicone 30 mg Al Hydroxide 250 mg, Mg Hydroxide 400 mg Al Oxide 175 mg, Mg Hydroxide 250 mg Tablet Tablet Suspension Pyrantel Pamoate 50 mg/ml Albendazole 400 mg Pyrantel Pamoate 125 mg Cream Tretinoin 0.025% Lactameal Anthelmintic Alphin DS Melphin Anti-Acne Cosmotrin Antiamoebic Filmet Tablet Metronidazole 200 mg Metronidazole 400 mg Metronidazole 800 mg Suspension Metronidazole 200 mg/5 ml Isosorbide Mononitrate 20 mg Diltiazem 30 mg Diltiazem 60 mg Amiodarone Hydrochloride 100 mg Amiodarone Hydrochloride 200 mg Anti-Anginal Monate Neocard Tablet Tablet Anti-Arrhythmic Pacet Tablet Antibacterial Arixon 1g IM Arixon 1g IV Arixon 250 mg IM Arixon 250 mg IV Arixon 500 mg IM Arixon 500 mg IV Arlin Injection Injection Injection Injection Injection Injection Tablet Azithrocin Cephalen Clobex Decacycline Etrocin Evo Ceftriaxone 1g Ceftriaxone 1g Ceftriaxone 250 mg Ceftriaxone 250 mg Ceftriaxone 500 mg Ceftriaxone 500 mg Linezolid 400 mg Linezolid 600 mg Linezolid 100 mg/ 5 ml Azithromycin 250 mg Azithromycin 500 mg Suspension Capsule Tablet Suspension Azithromycin 200 mg/5 ml Capsule Cephalexin 250 mg Cephalexin 500 mg Suspension Cephalexin 125 mg/5 ml Capsule Syrup Capsule Tablet Cloxacillin 500 mg Cloxacillin 125 mg/5 ml Tetracycline 250 mg Erythromycin 250 mg Erythromycin 500 mg Suspension Erythromycin 125 mg/5 ml Tablet Levofloxacin 250 mg Levofloxacin 500 mg Flucloxacillin 250 mg Flucloxacillin 500 mg Flucloxacillin 125 mg/5 ml Cephradine 250 mg Cephradine 500 mg Flubex Capsule Intracef Suspension Capsule Suspension Cephradine 125 mg/5 ml Drops Injection Cephradine 125 mg/1.25 ml Cephradine 250 mg Injection Tablet Capsule Cephradine 500 mg Pefloxacin 400 mg Doxycycline 100 mg Isofloxin Megadox Brand name Dosage form Generic name & strength Megatrim DS Tablet Trimethoprim 160 mg & Sulphamethoxazole 800 mg Suspension Each 5 ml contains Trimethoprim 40 mg Nebactil Neofloxin Suspension Tablet & Sulphamethoxazole 200 mg Nalidixic acid 300 mg/5 ml Ciprofloxacin 250 mg Ciprofloxacin 500 mg Ciprofloxacin 750 mg Ciprofloxacin 500 mg Moxifloxacin 400 mg Clarithromycin 250 mg Clarithromycin 500 mg Clarithromycin 125 mg/5 ml Sparfloxacin 200 mg Cefixime 200 mg Cefixime 100 mg/5 ml Amoxycillin 250 mg Amoxycillin 500 mg Sustained Release Tablet Tablet Tablet Suspension Tablet Capsule Suspension Capsule Suspension Amoxycillin 125 mg/5 ml Drops Suspension Tablet Amoxycillin 125 mg/1.25 ml Amoxycillin 250 mg/5 ml Gatifloxacin 400 mg Neofloxin XR Odycin Rolacin Sparlin Triocim Tycil Tycil DS Xegal 24 25 5 Years’ Statistics Particulars 2003 2002 2001 2000 1999 Amounts in thousand Taka Authorized Capital Paid up Capital Total Turnover Export Turnover Gross Margin Profit Before Tax Net Profit Fixed Assets at cost Shareholders' Equity Dividend Return on Paid up Capital Equity Per Share Earnings Per Share Market Price Per Share Price Earnings Ratio (Time) Number of Shareholders General Public & Sponsors Foreign Investors ICB & Investors’Account Human Resources Number of Employees Officers Staff 1,000,000 508,875 2,183,830 59,594 828,081 263,619 224,643 6,669,824 4,643,615 20% 52% 91 4.41 39.72 9.00 47,811 35,568 42 12,201 1,328 862 466 1,000,000 442,500 2,508,788 50,284 888,295 362,232 341,680 5,512,974 4,441,096 20% 82% 100 6.71 41.83 6.23 49,960 37,317 43 12,600 1,218 747 471 1,000,000 442,500 2,401,241 47,325 942,133 430,420 401,780 5,141,780 4,165,791 15% 97% 94 9.08 49.50 5.45 50,367 37,568 43 12,756 1,151 695 456 1,000,000 442,500 2,452,524 44,268 895,783 422,644 398,295 4,062,660 3,764,011 20% 96% 85 9.00 66.90 7.43 50,618 38,447 43 12,128 1,047 581 466 1,000,000 442,500 2,398,985 35,846 816,089 413,312 386,576 3,759,880 3,454,217 20% 93% 78 8.74 32.31 3.70 50,733 38,426 43 12,264 1,010 544 466 Shareholders’ Equity 4,441 4,644 3,454 3,764 4,166 1999 2000 2001 2002 2003 Year Product List Brand name Dosage form Generic name & strength Analgesic/Antipyretic Capsule Lucidol Napa Tablet Syrup Drops Suppository Antacid & Antiflatulent Flatameal-DS Tablet Tramadol HCl 50 mg Paracetamol 500 mg Paracetamol 120 mg/5 ml Paracetamol 80 mg/ml Paracetamol 125 mg Paracetamol 250 mg Paracetamol 500 mg Al Hydroxide 400 mg, Mg Hydroxide 400 mg, Simethicone 30 mg Suspension Al Oxide 200 mg, Mg Hydroxide 400 mg, Tablet Suspension Simethicone 30 mg Al Hydroxide 250 mg, Mg Hydroxide 400 mg Al Oxide 175 mg, Mg Hydroxide 250 mg Tablet Tablet Suspension Pyrantel Pamoate 50 mg/ml Albendazole 400 mg Pyrantel Pamoate 125 mg Cream Tretinoin 0.025% Lactameal Anthelmintic Alphin DS Melphin Anti-Acne Cosmotrin Antiamoebic Filmet Tablet Metronidazole 200 mg Metronidazole 400 mg Metronidazole 800 mg Suspension Metronidazole 200 mg/5 ml Isosorbide Mononitrate 20 mg Diltiazem 30 mg Diltiazem 60 mg Amiodarone Hydrochloride 100 mg Amiodarone Hydrochloride 200 mg Anti-Anginal Monate Neocard Tablet Tablet Anti-Arrhythmic Pacet Tablet Antibacterial Arixon 1g IM Arixon 1g IV Arixon 250 mg IM Arixon 250 mg IV Arixon 500 mg IM Arixon 500 mg IV Arlin Injection Injection Injection Injection Injection Injection Tablet Azithrocin Cephalen Clobex Decacycline Etrocin Evo Ceftriaxone 1g Ceftriaxone 1g Ceftriaxone 250 mg Ceftriaxone 250 mg Ceftriaxone 500 mg Ceftriaxone 500 mg Linezolid 400 mg Linezolid 600 mg Linezolid 100 mg/ 5 ml Azithromycin 250 mg Azithromycin 500 mg Suspension Capsule Tablet Suspension Azithromycin 200 mg/5 ml Capsule Cephalexin 250 mg Cephalexin 500 mg Suspension Cephalexin 125 mg/5 ml Capsule Syrup Capsule Tablet Cloxacillin 500 mg Cloxacillin 125 mg/5 ml Tetracycline 250 mg Erythromycin 250 mg Erythromycin 500 mg Suspension Erythromycin 125 mg/5 ml Tablet Levofloxacin 250 mg Levofloxacin 500 mg Flucloxacillin 250 mg Flucloxacillin 500 mg Flucloxacillin 125 mg/5 ml Cephradine 250 mg Cephradine 500 mg Flubex Capsule Intracef Suspension Capsule Suspension Cephradine 125 mg/5 ml Drops Injection Cephradine 125 mg/1.25 ml Cephradine 250 mg Injection Tablet Capsule Cephradine 500 mg Pefloxacin 400 mg Doxycycline 100 mg Isofloxin Megadox Brand name Dosage form Generic name & strength Megatrim DS Tablet Trimethoprim 160 mg & Sulphamethoxazole 800 mg Suspension Each 5 ml contains Trimethoprim 40 mg Nebactil Neofloxin Suspension Tablet & Sulphamethoxazole 200 mg Nalidixic acid 300 mg/5 ml Ciprofloxacin 250 mg Ciprofloxacin 500 mg Ciprofloxacin 750 mg Ciprofloxacin 500 mg Moxifloxacin 400 mg Clarithromycin 250 mg Clarithromycin 500 mg Clarithromycin 125 mg/5 ml Sparfloxacin 200 mg Cefixime 200 mg Cefixime 100 mg/5 ml Amoxycillin 250 mg Amoxycillin 500 mg Sustained Release Tablet Tablet Tablet Suspension Tablet Capsule Suspension Capsule Suspension Amoxycillin 125 mg/5 ml Drops Suspension Tablet Amoxycillin 125 mg/1.25 ml Amoxycillin 250 mg/5 ml Gatifloxacin 400 mg Neofloxin XR Odycin Rolacin Sparlin Triocim Tycil Tycil DS Xegal 24 25 Brand name Dosage form Generic name & strength Brand name Dosage form Generic name & strength Brand name Dosage form Generic name & strength Brand name Dosage form Generic name & strength Anti-BPH Prosfin Uroflo Anti-Cancer Tamona Tablet Tablet Tablet Finasteride 5 mg Tamsulosin 0.4 mg Tamoxifen 10 mg Tamoxifen 20 mg Inhaler Suspension Anticholinergic Ipramid Anticolic Neodrop Antidepressant Apresin Atralin Frenxit Melev 20 Modipran Antidiabetic Diactin Diaglit Tablet Tablet Tablet Tablet Capsule Tablet Tablet Diapro Diaryl Tablet Tablet Informet Tablet Informet LA Premil Sustained Release Tablet Tablet Ipratropium Bromide 20 m g/actuation Simethicon 67 mg/ml Fluphenazine 0.5 mg + Nortriptyline 10 mg Sertralin 50 mg Flupentixol 0.5 mg + Melitracen 10 mg Paroxetine 20 mg Fluoxetine 20 mg Glipizide 5 mg Pioglitazone 15 mg Pioglitazone 30 mg Gliclazide 80 mg Glimepiride 1 mg Glimepiride 2 mg Glimepiride 3 mg Metformin Hydrochloride 500 mg Metformin Hydrochloride 850 mg Metformin Hydrochloride 500 mg Repaglinide 0.5 mg Repaglinide 1 mg Repaglinide 2 mg Antiemetic Inarzin Onsat 8 Antifungal Fungistin Omastin Neosten Neosten VT Terbex Tablet Tablet Cinnarizine 15 mg Ondansetron 8 mg Oral Susp. Capsule Nystatin 100,000 units/ml Fluconazole 50 mg Fluconazole 150 mg Fluconazole 50 mg/5 ml Suspension Cream Clotrimazole 0.1% Vaginal Tablet Clotrimazole 0.2 gm Terbinafine 250 mg Tablet Terbinafine 1% Cream Anti-Epileptic Epilep Epilep CR Controlled Tablet Release Tablet Antihaemorrhoidal Anustat Ointment Carbamazepine 200 mg Carbamazepine 200 mg Each gram contains Cinchocaine 5 mg, Hydrocortisone 5 mg, Neomycin 10 mg & Esculin 10 mg Antihistamine Atrizin Axodin Bexidal Curin Momento Pedeamin Pretin Antihypertensive Amdocal Tablet Syrup Tablet Tablet Tablet Tablet Syrup Syrup Tablet Tablet Amdocal Plus Tablet Arbit Cardopril Dilapress Enaril Neopril Tablet Tablet Tablet Tablet Tablet 26 Cetirizine Hydrochloride 10 mg Cetirizine Hydrochloride 5 mg/5 ml Fexofenadin 60 mg Fexofenadin 120 mg Fexofenadin 180 mg Mebhydrolin 50 mg Levocetirizine 5 mg Desloratadine 5 mg Desloratadine 2.5 mg/5 ml Diphenhydramine 10 mg/5 ml Loratadine 10 mg Amlodipine (as besylate) 5 mg Amlodipine (as besylate) 10 mg Amlodipine 5 mg + Atenolol 25 mg Amlodipine 5 mg + Atenolol 50 mg Irbesartan 75 mg Irbesartan 150 mg Captopril 25 mg Captopril 50 mg Carvedilol 6.25 mg Carvedilol 12.5 mg Carvedilol 25 mg Enalapril 5 mg Lisinopril 5 mg Lisinopril 10 mg Primace Capsule Prosan Valcap Tablet Capsule Anti-HIV/AIDS Avifanz Avifix Avilam Diavix Triovix Tablet Tablet Tablet Tablet Tablet Anti-Migraine Avidro Tablet Antiobesity Sibulin Antiosteoporotic Alendon Tablet Capsule Ramipril 1.25 mg Ramipril 2.5 mg Ramipril 5 mg Losartan Potassium 25 mg Losartan Potassium 50 mg Valsartan 80 mg Valsartan 160 mg Efavirenz 600 mg Nelfinavir 250 mg Lamivudine 150 mg Lamivudine 150 mg + Zidovudine 300 mg Lamivudine 150 mg + Zidovudine 300 mg + Nevirapine 200 mg Pizotifen 0.5 mg Pizotifen 1.5 mg Sibutramine 5 mg Alendronate Sodium 10 mg Alendronate Sodium 70 mg Tablet Clopidogrel 75 mg Tablet Clozapine 25 mg Antiplatelet Odrel Antipsychotic Sensipin Antispasmodic Rostil Spanil Taverin Antiulcerant Gastalfet Neoceptin R Neo Kit Opton Proceptin Protolan Tablet Tablet Tablet Tablet Tablet Syrup Tablet Capsule Tablet Tablet Capsule Capsule Yamadin Tablet Asthma Prophylactic Inhaler Aeronid Inhaler Bexitrol-F Inhaler Decomit Tofen Zukast Monocast Tablet Syrup Tablet Tablet Bronchodilator Azmasol Bexitrol Bronkolax Inhaler Inhaler Tablet Larnox LA Syrup Sustained Release Tablet Calcium Supplement Aristocal Tablet Cough Expectorant Tripec Syrup Mebeverine Hydrochloride 135 mg Hyoscine Butylbromide 10 mg Drotaverine 40 mg Sucralfate 500 mg Ranitidine 150 mg Ranitidine 300 mg Ranitidine 75 mg/5 ml Clarithromycin 500 mg Omeprazole 20 mg Metronidazole 400 mg Esomeprazole 20 mg Omeprazole 20 mg Lansoprazole 15 mg Lansoprazole 30 mg Famotidine 20 mg Famotidine 40 mg Budesonide 200 m g/actuation Salmeterol 25 m g + Fluticasone 250 m g Beclomethasone Dipropionate 100 m g/actuation Beclomethasone Dipropionate 250 m g/actuation Ketotifen 1 mg Ketotifen 1 mg/5 ml Zafirlukast 20 mg Montelukast 4 mg Montelukast 5 mg Montelukast 10 mg Salbutamol 100 m g/actuation Salmeterol 25 m g/actuation Salbutamol 2 mg Salbutamol 4 mg Salbutamol 2 mg/5 ml Aminophylline 350 mg Calcium 500 mg Guaifenesin 100 mg, Pseudoephedrine Hydrochloride 30 mg & Triprolidine Hydrochloride 1.25 mg/5 ml Cough Suppressant Syrup Dextromethorphan Dextromethorphan 10 mg/5 ml COX-2 Inhibitor Cox B Capsule Recox Tablet V-Cox Tablet Tablet Digestive Enzyme Zymet Diuretic Resitone Gastroprokinetic Deflux Tablet Tablet Suspension Drops Celecoxib 100 mg Celecoxib 200 mg Rofecoxib 12.5 mg Rofecoxib 25 mg Rofecoxib 50 mg Valdecoxib 10 mg Valdecoxib 20 mg Pancreatin 325 mg Spironolactone 50 mg + Frusemide 20 mg Domperidone 10 mg Domperidone 5 mg/5 ml Domperidone 5 mg/ml Hypnotic Eplon Capsule Zaleplon 5 mg Zaleplon 10 mg Iron Supplement Aristoferon Aristofol-Fe Efol ER Hefolin SR Carofol Z Syrup Tablet Capsule Sustained Release Capsule Capsule Laxative Serelose FreLax Syrup Powder for solution Lipid Lowering Agent Tablet Atova Avastin Fibril Mucolytic Spulyt Tablet Capsule Tablet Syrup Ferrous Sulphate 200 mg/5 ml Ferrous Fumarate 308 mg & Folic Acid 350 m g Iron 47 mg + Folic Acid 500 m g + Zinc 22.5 mg Iron 47 mg & Folic Acid 500 m g Carbonyl Iron 50 mg, Folic Acid 0.05 mg, Zinc Sulphate Monohydrate 61.80 mg Lactulose 3.35 gm/5 ml Polyethylene glycol 3350 USNF Atorvastatin 10 mg Atorvastatin 20 mg Simvastatin 10 mg Gemfibrozil 300 mg Bromohexine 8 mg Bromohexine 10 mg/5 ml Beclomethasone Dipropionate 50 m g/actuation Tizanidine 2 mg Tablet Muscle Relaxant Relentus Nasal Anti-Inflammatory Decomit Nasal Spray Spray Nasal Decongestant Nazolin Nasal Spray Non-Steroidal Anti-Inflammatory Drug Capsule Fenamic Tablet Nuprafen Spray Reumafen Tablet Ultrafen Suspension Tablet Suppository Oxymetazoline 25 m g/actuation Mefenamic Acid 250 mg Naproxen 250 mg Naproxen 500 mg Ibuprofen 200 mg Ibuprofen 400 mg Ibuprofen 100 mg/5 ml Diclofenac Sodium 25 mg Diclofenac Sodium 50 mg Diclofenac Sodium 12.5 mg Diclofenac Sodium 50 mg Ultrafen SR Sustained Release Tablet Diclofenac Sodium 100 mg Ultrafen Gel Ultrafen Plus Gel Tablet Xidolac Xynofen 100 SR Tablet Sustained Release Capsule Ovulatory Stimulant Tablet Fertil Scabicidal Diclofenac Sodium 1% Diclofenac 50 mg + Misoprostol 200 m g Diclofenac 75 mg + Misoprostol 200 m g Ketorolac 10 mg Ketoprofen 100 mg Clomiphene Citrate 50 mg Cream Noscab Topical Antibacterial and Anti-Inflammatory Econazole Nitrate 1% Ecotrim Triamcenolone Acetonide 0.1% Permethrin 5% Cream Topical Antibiotic Burnsil Furasep Cream Cream Fusidic Plus Ointment Cream Tablet Tablet Tablet Gentosep Tranquilizer Keolax Nightus Zolax Urinary Incontinence Uricon Tablet Vasodilator Cerivin Zocil Tablet Tablet Vitamins & Minerals Syrup Aristoplex Aristovit-B Tablet Aristovit-M Aristovit-X Ascobex Avitron V Bextrum Tablet Tablet Tablet Tablet Tablet Bextrum Gold Tablet Carocet Formula-E Momvit Tablet Tablet Tablet Pregvit Capsule Tynisol Drop Vivis Capsule Silver Sulphadiazine 25 g Nitrofurazone 0.2% Sodium Fusidate 2%, Hydrocortisone Acetate 1% Gentamicin 3 mg/gm Clobazam 10 mg Bromazepam 3 mg Alprazolam 0.5 mg Oxybutynin Hydrochloride 5 mg Vinpocetine 5 mg Cilostazol 100 mg Cilostazol 50 mg Vitamin B1 5 mg, Vitamin B2 2 mg , Vitamin B6 2 mg & Nicotinamide 20 mg/5 ml Vitamin B1 5 mg, Vitamin B2 2 mg, Vitamin B6 2 mg & Nicotinamide 20 mg 11 Vitamins, 5 Minerals & Iron 8 Antioxidant Vitamins & Minerals Ascorbic Acid 250 mg Thiamine Hydrochloride 100 mg 12 Vitamins & 8 Minerals including Iron, Folic Acid & Zinc 14 Vitamins & 18 Minerals including Iron, Folic Acid & Zinc b -Carotene 6 mg, Vitamin-C 200 mg and Vitamin E 50 mg Vitamin E 200 mg Vitamin A 26667 I.U., Vitamin D 400 I.U., Calcium 40 mg, Vitamin C 60 mg, Potassium Iodide 130 m g Ferrous Sulphate 150 mg, Folic Acid 500 mcg B1 2 mg, B2 2 mg, Pyridoxine 1 mg, Nicotinamide 10 mg, Ascorbic Acid 50 mg Vitamin A 4000 I.U., Vitamin D 400 I.U., Ascorbic acid 50 mg, Thiamine HCl 1 mg, Riboflavin 0.685 mg, Pyridoxin HCl 1 mg, Nicotinamide 5 mg & Pantothenate 3 mg Vitamin E 30 mg, Vitamin C 60 mg, Copper 2 mg, Lutein 6 mg & Zinc 15 mg Zinc Supplement Zedex DS Syrup Zinc Sulphate 10mg/5 ml 27 Brand name Dosage form Generic name & strength Brand name Dosage form Generic name & strength Brand name Dosage form Generic name & strength Brand name Dosage form Generic name & strength Anti-BPH Prosfin Uroflo Anti-Cancer Tamona Tablet Tablet Tablet Finasteride 5 mg Tamsulosin 0.4 mg Tamoxifen 10 mg Tamoxifen 20 mg Inhaler Suspension Anticholinergic Ipramid Anticolic Neodrop Antidepressant Apresin Atralin Frenxit Melev 20 Modipran Antidiabetic Diactin Diaglit Tablet Tablet Tablet Tablet Capsule Tablet Tablet Diapro Diaryl Tablet Tablet Informet Tablet Informet LA Premil Sustained Release Tablet Tablet Ipratropium Bromide 20 m g/actuation Simethicon 67 mg/ml Fluphenazine 0.5 mg + Nortriptyline 10 mg Sertralin 50 mg Flupentixol 0.5 mg + Melitracen 10 mg Paroxetine 20 mg Fluoxetine 20 mg Glipizide 5 mg Pioglitazone 15 mg Pioglitazone 30 mg Gliclazide 80 mg Glimepiride 1 mg Glimepiride 2 mg Glimepiride 3 mg Metformin Hydrochloride 500 mg Metformin Hydrochloride 850 mg Metformin Hydrochloride 500 mg Repaglinide 0.5 mg Repaglinide 1 mg Repaglinide 2 mg Antiemetic Inarzin Onsat 8 Antifungal Fungistin Omastin Neosten Neosten VT Terbex Tablet Tablet Cinnarizine 15 mg Ondansetron 8 mg Oral Susp. Capsule Nystatin 100,000 units/ml Fluconazole 50 mg Fluconazole 150 mg Fluconazole 50 mg/5 ml Suspension Cream Clotrimazole 0.1% Vaginal Tablet Clotrimazole 0.2 gm Terbinafine 250 mg Tablet Terbinafine 1% Cream Anti-Epileptic Epilep Epilep CR Controlled Tablet Release Tablet Antihaemorrhoidal Anustat Ointment Carbamazepine 200 mg Carbamazepine 200 mg Each gram contains Cinchocaine 5 mg, Hydrocortisone 5 mg, Neomycin 10 mg & Esculin 10 mg Antihistamine Atrizin Axodin Bexidal Curin Momento Pedeamin Pretin Antihypertensive Amdocal Tablet Syrup Tablet Tablet Tablet Tablet Syrup Syrup Tablet Tablet Amdocal Plus Tablet Arbit Cardopril Dilapress Enaril Neopril Tablet Tablet Tablet Tablet Tablet 26 Cetirizine Hydrochloride 10 mg Cetirizine Hydrochloride 5 mg/5 ml Fexofenadin 60 mg Fexofenadin 120 mg Fexofenadin 180 mg Mebhydrolin 50 mg Levocetirizine 5 mg Desloratadine 5 mg Desloratadine 2.5 mg/5 ml Diphenhydramine 10 mg/5 ml Loratadine 10 mg Amlodipine (as besylate) 5 mg Amlodipine (as besylate) 10 mg Amlodipine 5 mg + Atenolol 25 mg Amlodipine 5 mg + Atenolol 50 mg Irbesartan 75 mg Irbesartan 150 mg Captopril 25 mg Captopril 50 mg Carvedilol 6.25 mg Carvedilol 12.5 mg Carvedilol 25 mg Enalapril 5 mg Lisinopril 5 mg Lisinopril 10 mg Primace Capsule Prosan Valcap Tablet Capsule Anti-HIV/AIDS Avifanz Avifix Avilam Diavix Triovix Tablet Tablet Tablet Tablet Tablet Anti-Migraine Avidro Tablet Antiobesity Sibulin Antiosteoporotic Alendon Tablet Capsule Ramipril 1.25 mg Ramipril 2.5 mg Ramipril 5 mg Losartan Potassium 25 mg Losartan Potassium 50 mg Valsartan 80 mg Valsartan 160 mg Efavirenz 600 mg Nelfinavir 250 mg Lamivudine 150 mg Lamivudine 150 mg + Zidovudine 300 mg Lamivudine 150 mg + Zidovudine 300 mg + Nevirapine 200 mg Pizotifen 0.5 mg Pizotifen 1.5 mg Sibutramine 5 mg Alendronate Sodium 10 mg Alendronate Sodium 70 mg Tablet Clopidogrel 75 mg Tablet Clozapine 25 mg Antiplatelet Odrel Antipsychotic Sensipin Antispasmodic Rostil Spanil Taverin Antiulcerant Gastalfet Neoceptin R Neo Kit Opton Proceptin Protolan Tablet Tablet Tablet Tablet Tablet Syrup Tablet Capsule Tablet Tablet Capsule Capsule Yamadin Tablet Asthma Prophylactic Inhaler Aeronid Inhaler Bexitrol-F Inhaler Decomit Tofen Zukast Monocast Tablet Syrup Tablet Tablet Bronchodilator Azmasol Bexitrol Bronkolax Inhaler Inhaler Tablet Larnox LA Syrup Sustained Release Tablet Calcium Supplement Aristocal Tablet Cough Expectorant Tripec Syrup Mebeverine Hydrochloride 135 mg Hyoscine Butylbromide 10 mg Drotaverine 40 mg Sucralfate 500 mg Ranitidine 150 mg Ranitidine 300 mg Ranitidine 75 mg/5 ml Clarithromycin 500 mg Omeprazole 20 mg Metronidazole 400 mg Esomeprazole 20 mg Omeprazole 20 mg Lansoprazole 15 mg Lansoprazole 30 mg Famotidine 20 mg Famotidine 40 mg Budesonide 200 m g/actuation Salmeterol 25 m g + Fluticasone 250 m g Beclomethasone Dipropionate 100 m g/actuation Beclomethasone Dipropionate 250 m g/actuation Ketotifen 1 mg Ketotifen 1 mg/5 ml Zafirlukast 20 mg Montelukast 4 mg Montelukast 5 mg Montelukast 10 mg Salbutamol 100 m g/actuation Salmeterol 25 m g/actuation Salbutamol 2 mg Salbutamol 4 mg Salbutamol 2 mg/5 ml Aminophylline 350 mg Calcium 500 mg Guaifenesin 100 mg, Pseudoephedrine Hydrochloride 30 mg & Triprolidine Hydrochloride 1.25 mg/5 ml Cough Suppressant Syrup Dextromethorphan Dextromethorphan 10 mg/5 ml COX-2 Inhibitor Cox B Capsule Recox Tablet V-Cox Tablet Tablet Digestive Enzyme Zymet Diuretic Resitone Gastroprokinetic Deflux Tablet Tablet Suspension Drops Celecoxib 100 mg Celecoxib 200 mg Rofecoxib 12.5 mg Rofecoxib 25 mg Rofecoxib 50 mg Valdecoxib 10 mg Valdecoxib 20 mg Pancreatin 325 mg Spironolactone 50 mg + Frusemide 20 mg Domperidone 10 mg Domperidone 5 mg/5 ml Domperidone 5 mg/ml Hypnotic Eplon Capsule Zaleplon 5 mg Zaleplon 10 mg Iron Supplement Aristoferon Aristofol-Fe Efol ER Hefolin SR Carofol Z Syrup Tablet Capsule Sustained Release Capsule Capsule Laxative Serelose FreLax Syrup Powder for solution Lipid Lowering Agent Tablet Atova Avastin Fibril Mucolytic Spulyt Tablet Capsule Tablet Syrup Ferrous Sulphate 200 mg/5 ml Ferrous Fumarate 308 mg & Folic Acid 350 m g Iron 47 mg + Folic Acid 500 m g + Zinc 22.5 mg Iron 47 mg & Folic Acid 500 m g Carbonyl Iron 50 mg, Folic Acid 0.05 mg, Zinc Sulphate Monohydrate 61.80 mg Lactulose 3.35 gm/5 ml Polyethylene glycol 3350 USNF Atorvastatin 10 mg Atorvastatin 20 mg Simvastatin 10 mg Gemfibrozil 300 mg Bromohexine 8 mg Bromohexine 10 mg/5 ml Beclomethasone Dipropionate 50 m g/actuation Tizanidine 2 mg Tablet Muscle Relaxant Relentus Nasal Anti-Inflammatory Decomit Nasal Spray Spray Nasal Decongestant Nazolin Nasal Spray Non-Steroidal Anti-Inflammatory Drug Capsule Fenamic Tablet Nuprafen Spray Reumafen Tablet Ultrafen Suspension Tablet Suppository Oxymetazoline 25 m g/actuation Mefenamic Acid 250 mg Naproxen 250 mg Naproxen 500 mg Ibuprofen 200 mg Ibuprofen 400 mg Ibuprofen 100 mg/5 ml Diclofenac Sodium 25 mg Diclofenac Sodium 50 mg Diclofenac Sodium 12.5 mg Diclofenac Sodium 50 mg Ultrafen SR Sustained Release Tablet Diclofenac Sodium 100 mg Ultrafen Gel Ultrafen Plus Gel Tablet Xidolac Xynofen 100 SR Tablet Sustained Release Capsule Ovulatory Stimulant Tablet Fertil Scabicidal Diclofenac Sodium 1% Diclofenac 50 mg + Misoprostol 200 m g Diclofenac 75 mg + Misoprostol 200 m g Ketorolac 10 mg Ketoprofen 100 mg Clomiphene Citrate 50 mg Cream Noscab Topical Antibacterial and Anti-Inflammatory Econazole Nitrate 1% Ecotrim Triamcenolone Acetonide 0.1% Permethrin 5% Cream Topical Antibiotic Burnsil Furasep Cream Cream Fusidic Plus Ointment Cream Tablet Tablet Tablet Gentosep Tranquilizer Keolax Nightus Zolax Urinary Incontinence Uricon Tablet Vasodilator Cerivin Zocil Tablet Tablet Vitamins & Minerals Syrup Aristoplex Aristovit-B Tablet Aristovit-M Aristovit-X Ascobex Avitron V Bextrum Tablet Tablet Tablet Tablet Tablet Bextrum Gold Tablet Carocet Formula-E Momvit Tablet Tablet Tablet Pregvit Capsule Tynisol Drop Vivis Capsule Silver Sulphadiazine 25 g Nitrofurazone 0.2% Sodium Fusidate 2%, Hydrocortisone Acetate 1% Gentamicin 3 mg/gm Clobazam 10 mg Bromazepam 3 mg Alprazolam 0.5 mg Oxybutynin Hydrochloride 5 mg Vinpocetine 5 mg Cilostazol 100 mg Cilostazol 50 mg Vitamin B1 5 mg, Vitamin B2 2 mg , Vitamin B6 2 mg & Nicotinamide 20 mg/5 ml Vitamin B1 5 mg, Vitamin B2 2 mg, Vitamin B6 2 mg & Nicotinamide 20 mg 11 Vitamins, 5 Minerals & Iron 8 Antioxidant Vitamins & Minerals Ascorbic Acid 250 mg Thiamine Hydrochloride 100 mg 12 Vitamins & 8 Minerals including Iron, Folic Acid & Zinc 14 Vitamins & 18 Minerals including Iron, Folic Acid & Zinc b -Carotene 6 mg, Vitamin-C 200 mg and Vitamin E 50 mg Vitamin E 200 mg Vitamin A 26667 I.U., Vitamin D 400 I.U., Calcium 40 mg, Vitamin C 60 mg, Potassium Iodide 130 m g Ferrous Sulphate 150 mg, Folic Acid 500 mcg B1 2 mg, B2 2 mg, Pyridoxine 1 mg, Nicotinamide 10 mg, Ascorbic Acid 50 mg Vitamin A 4000 I.U., Vitamin D 400 I.U., Ascorbic acid 50 mg, Thiamine HCl 1 mg, Riboflavin 0.685 mg, Pyridoxin HCl 1 mg, Nicotinamide 5 mg & Pantothenate 3 mg Vitamin E 30 mg, Vitamin C 60 mg, Copper 2 mg, Lutein 6 mg & Zinc 15 mg Zinc Supplement Zedex DS Syrup Zinc Sulphate 10mg/5 ml 27 BEXIMCO PHARMACEUTICALS LIMITED 17 Dhanmondi R/A, Road No. 2, Dhaka-1205 Notice of the Twenty - Eighth Annual General Meeting Notice is hereby given that the TWENTY-EIGHTH ANNUAL GENERAL MEETING of the Shareholders of Beximco Pharmaceuticals Limited will be held on Thursday, the 24th June, 2004 at 10:30 a.m. at 1, Shahbag C/A, Dhaka to transact the following business : A G E N D A 1. 2. 3. 4. 5. 6. To confirm the proceedings of the Twenty-Seventh Annual General Meeting of the Company held on 24th June, 2003. To receive, consider and adopt the Audited Accounts as of 31st December, 2003 together with reports of the Auditors and the Directors thereon. To elect Directors. To declare 10% cash dividend and 10% stock dividend (Bonus Share). To appoint Auditors for the year 2004 and to fix their remuneration. To transact any other business of the Company with the permission of the Chair. By order of the Board, Sd/- ( MD. ASAD ULLAH, FCS ) Company Secretary Dated : April 27, 2004 NOTES : (1) (2) The Register of Members and Share Transfer Book of the Company will remain closed from 2nd June, 2004 to 24th June, 2004 (both days inclusive). During that period no share transfer will be effected. The Shareholders whose names will appear in the Share Register of the Company at the close of business on 1st June, 2004 will be entitled to the dividend. A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy Form, duly stamped, must be deposited at the Registered Office of the Company not later than 48 hours before the time fixed for the meeting. (3) Members are requested to notify change of address, if any, to the Company. (4) Admission to the meeting room will be strictly on production of the attendance slip sent with the Notice. §Y~JroqJPjr k«KfPmhj x(cid:216)JKjf §v~JrPyJ(cid:223)JrVe, §mK(cid:142)oPTJ lJoJtKxCKaTqJux& KuKoPaPcr 28fo mJKwtT xJiJre xnJ~ kKrYJujJ kwth Fr k(cid:139) §gPT IJKo IJkjJPhrPT (cid:253)JVf \JjJK(cid:152)(cid:130) §TJ˛JjLr xJKmtT TJpt(cid:137)Por FTKa x(cid:128)K(cid:139)´ KY' Fm(cid:128) FTA xJPg 2003 xJPur IKca KrPkJat IJkjJPhr xJoPj CkœJkj TrJr xMPpJV §kP~ IJKo IJjK»f(cid:130) TJpt(cid:137)o 2003 xJPu §TJ˛JjLr Km(cid:137)~ IJoJPhr k«fqJvJr f(cid:135)ujJ~ To yP~PZ(cid:130) Km(cid:137)P~r FA WJaKfr lPu IJvJjMªk oMjJlJ IK\tf y~ jJA(cid:130) F mZr §TJ˛JjLr jLa Km(cid:137)~ yP~PZ 2,183.80 KoKu~j aJTJ pJ 2002 xJPu KZu 2,508.79 KoKu~j aJTJ(cid:130) 2002 xJPur 362.23 KoKu~j aJTJ TrkNmt oMjJlJr KmkrLPf F mZr TrkNmt oMjJlJr kKroJj hJKzP~PZ 263.62 KoKu~j aJTJ(cid:130) u(cid:139)q IK\tf jJ yS~J xmxo~A IjJTJK(cid:218)f Fm(cid:128) Fr (cid:253)kP(cid:139) §TJj pMK(cid:134) CkœJkj TrJ IJoJr CP‹vq j~(cid:130) KT¶(cid:135) mJ(cid:247)m ImœJ x˛PTt IJkjJPhrPT ImKyf TrJ IJoJPhr hJK~f(cid:153)(cid:130) F §k«K(cid:139)Pf IJorJ \JjJPf YJA 2003 xJPur k«go Kfj oJPx PhPvr k«go xJKrr k«J~ xmT~Ka Hwi §TJ˛JjLrA Km(cid:137)~ k«mOK› KZu EjJf(cid:153)T(cid:130) F xoP~ IjqJjq §TJ˛JjLr of IJoJPhr Km(cid:137)~S uP(cid:139)qr §YP~ KkKZP~ kPzKZu(cid:130) mZPrr krmfLt oJx(cid:143)PuJPf Km(cid:137)P~r u(cid:139)q oJ'J IK\tf yPuS k«go Kfj oJPxr WJaKf kNre x(cid:214)m y~Kj(cid:130) IJPuJYq mZPr §TRvuVfnJPm (cid:143)¸f(cid:153)kNet KTZM KTZM §(cid:139)P' IJorJ xJluq I\tj TPrKZ pJ k«v(cid:128)xJr hJKmhJr(cid:130) F kpJtP~ IJKo IJoJPhr x(cid:216)JKjf §v~JrPyJ(cid:223)JrPhr TJPZ F x(cid:128)(cid:137)J¶ k«iJj KTZM KhPTr Ckr IJPuJTkJf TrPf YJA(cid:211) IJ¶\JtKfT mJ\Jr IJPuJYq mZPr IJoJPhr r´JjL Km(cid:137)~ CPu(cid:138)UPpJVqnJPm §mPzPZ, k«mOK›r yJr 18.52%(cid:130) kJKT(cid:247)Jj ZJzJ IjqJjq xTu r´JjL mJ\JPr Km(cid:137)~ k«mOK› IK\tf yP~PZ(cid:130) IJorJ IJoJPhr hMPaJ k«iJj Hwi KjSl(cid:148)K(cid:142)j (Neofloxin) Fm(cid:128) KjSPxkKaj-IJr (Neoceptin R) - 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Eighth Annual General Meeting Notice is hereby given that the TWENTY-EIGHTH ANNUAL GENERAL MEETING of the Shareholders of Beximco Pharmaceuticals Limited will be held on Thursday, the 24th June, 2004 at 10:30 a.m. at 1, Shahbag C/A, Dhaka to transact the following business : A G E N D A 1. 2. 3. 4. 5. 6. To confirm the proceedings of the Twenty-Seventh Annual General Meeting of the Company held on 24th June, 2003. To receive, consider and adopt the Audited Accounts as of 31st December, 2003 together with reports of the Auditors and the Directors thereon. To elect Directors. To declare 10% cash dividend and 10% stock dividend (Bonus Share). To appoint Auditors for the year 2004 and to fix their remuneration. To transact any other business of the Company with the permission of the Chair. By order of the Board, Sd/- ( MD. ASAD ULLAH, FCS ) Company Secretary Dated : April 27, 2004 NOTES : (1) (2) The Register of Members and Share Transfer Book of the Company will remain closed from 2nd June, 2004 to 24th June, 2004 (both days inclusive). During that period no share transfer will be effected. The Shareholders whose names will appear in the Share Register of the Company at the close of business on 1st June, 2004 will be entitled to the dividend. A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy Form, duly stamped, must be deposited at the Registered Office of the Company not later than 48 hours before the time fixed for the meeting. (3) Members are requested to notify change of address, if any, to the Company. 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It is indeed my pleasure to present a brief resume of the affairs of the company together with the Auditor’s Report for the year 2003. OPERATION In 2003, sales of the company fell short of our expectation. This least-expected performance consequently pulled down the achievement of our profit target as well. The company attained net sales of Tk. 2,183.80 million as against Tk. 2,508.79 million of 2002. The pre-tax profit stood at Tk. 263.62 million in 2003 down from Tk. 362.23 million of 2002. While any pretext is neither enough nor desirable to justify the lower achievement, we however feel it our responsibility to keep you posted of the real situation. In the first quarter of 2003 almost all the major companies of Bangladesh Pharmaceutical industry suffered a negative growth. BPL sales along with its competitors lag behind its target during that period. Achievement of sales at par in the subsequent months was not enough to make-up the shortfall. Dear Shareholders, The least-expected sales performance however, should not undermine our achievements in some strategic areas. I would like to focus on some key operational aspects for our valued shareholders: Impressive growth in International market Our export sales in taka during the year has increased by impressive 18.52%. All our export market except Pakistan maintained sales growth. We received order for Neofloxin and Neceptin-R from prestigious Raffles hospital in Singapore for their whole years consumption. This by any standard is an appreciable achievement for pharmaceutical company of a least developed country like Bangladesh. Local Market In 2003, we have re-organized and re-structured our sales and marketing strategy that has better positioned us in the minds of the doctors and healthcare professionals. Consequently, our prescription share has increased notably towards the end of 2003. During the year we have successfully introduced a record 26 new products of 40 dosage forms and strengths. I am pleased to announce that our innovative and winning marketing and sales effort has started yielding result. 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ijqmJh(cid:130) F Fx Fl ryoJj §Y~JroqJj dJTJ 27 FKk«u, 2004 30 Chairman’s Statement On behalf of the Board of Directors and on my own behalf I welcome you all to the 28th Annual General Meeting of your company, Beximco Pharmaceuticals Limited. It is indeed my pleasure to present a brief resume of the affairs of the company together with the Auditor’s Report for the year 2003. OPERATION In 2003, sales of the company fell short of our expectation. This least-expected performance consequently pulled down the achievement of our profit target as well. The company attained net sales of Tk. 2,183.80 million as against Tk. 2,508.79 million of 2002. The pre-tax profit stood at Tk. 263.62 million in 2003 down from Tk. 362.23 million of 2002. While any pretext is neither enough nor desirable to justify the lower achievement, we however feel it our responsibility to keep you posted of the real situation. In the first quarter of 2003 almost all the major companies of Bangladesh Pharmaceutical industry suffered a negative growth. BPL sales along with its competitors lag behind its target during that period. Achievement of sales at par in the subsequent months was not enough to make-up the shortfall. Dear Shareholders, The least-expected sales performance however, should not undermine our achievements in some strategic areas. I would like to focus on some key operational aspects for our valued shareholders: Impressive growth in International market Our export sales in taka during the year has increased by impressive 18.52%. All our export market except Pakistan maintained sales growth. We received order for Neofloxin and Neceptin-R from prestigious Raffles hospital in Singapore for their whole years consumption. This by any standard is an appreciable achievement for pharmaceutical company of a least developed country like Bangladesh. Local Market In 2003, we have re-organized and re-structured our sales and marketing strategy that has better positioned us in the minds of the doctors and healthcare professionals. Consequently, our prescription share has increased notably towards the end of 2003. During the year we have successfully introduced a record 26 new products of 40 dosage forms and strengths. I am pleased to announce that our innovative and winning marketing and sales effort has started yielding result. Sales in the first quarter of 2004 have exceeded our target. 31 Improved Gross Margin Consequent to our constant drive to contain cost and improve profitability we have managed to improve our gross margin by 2.51%. However, savings in the material cost was partially offset by increase in the selling and distribution expenses due to strategic investment in distribution logistics and network, strengthening of sales-force coupled with increased investment in record number of new products. The benefit of all these could be reaped in the coming years. Restructuring of Basic Chemical Portfolio As I mentioned in my last report, major products of our basic chemical portfolio Amoxycillin & Ampicillin have already reached their maturity. Besides, stiff competition accompanied by rising material cost is gradually eroding the profit margin of these products. Therefore, we found it prudent to discontinue manufacture of Ampicillin and Amoxycillin from 2004. However, thanks to our R & D team, it is due to their innovative efforts, a number of new products are now in the pipeline. Introduction of these high-value high-margin products will give a new life to our basic chemical portfolio. Given the above scenario, we believe that your company is now poised for better future. If things go right, we will have a better landing by the end of 2004. NEW PRODUCT PERFORMANCE Our efforts to optimize the product portfolios continued uninterruptedly in 2003 also. Consequent to our intense Research and Development activities and drive to innovate quality products we have, as mentioned earlier, added 26 brands of 40 different dosage forms and strengths to the existing product portfolio. But beyond numbers, the performance of these products in terms of their sales potential as well as their contribution in catering to the unmet healthcare need is worth mentioning. You will be pleased to know that two of the new brands namely Bextrum and Frenxit have emerged as market leader on the very first year of its launching. Zocil, one of our new Brand is a unique product introduced solely by BPL. Through introduction of Anti-HIV products we have set another milestone. We have also pioneered the local manufacture of Anti-Cancer drugs in 2003. These have taken the image of your company to a further height in national and international arena. Other products launched during the year have also got wide acceptance and appreciation from the medical community. FUTURE PLAN As we enter into the post WTO era, pharmaceutical sector like all other industries are going to face new challenges. Besides, with emergence of new pharmaceutical companies competition in the local pharmaceutical market is expected to intensify further. We are mindful of the challenges and confident about our capabilities to face them. Fortunately Bangladesh as a least developed country is exempted from mandatory patent protection up to 2016. This has created a new window of opportunities for us. We will explore all potential avenues to make best use of the opportunities. Recognizing today’s unmet needs of healthcare market place - our marketing strategy will continue to focus on value added but cost effective medicines. Our future strategy will continue to concentrate on retaining and expanding the domestic market share. Increased focus will also be there in developing new formulations and dosage forms. Along with domestic market, new avenues in the international market will also be extensively searched. Our new US FDAapprovable plant will be instrumental towards this direction. EXPANSION PROJECT As I mentioned in my last report, in the context of turbulence in the global economy particularly after 9/11, we found it prudent to defer procurement of plant and machinery for our US FDA approvable plant till such time as the depressed economic scenario undergo sustainable improvement. I am pleased to inform that the work on the project is now going on in full pace. The procurement of plant and machinery is in progress. Civil and other soft and hard tasks is complete to required extent. We have entered into an agreement with Pharmaplan, India who will provide assistance in areas such as erection and installation of machinery complying cGMP, Validation Documentation, GMP training etc., and obtaining UK MCA/US FDA certification. Our revised target is to bring the project at ready –for –inspection status by early 2005. CONTRIBUTION TO NATIONAL EXCHEQUER During 2003, BPL contributed Tk. 443.50 million in the form of import related taxes, VAT and Income tax to the national exchequer. ENVIRONMENT As a good corporate citizen, BPL has long accepted its responsibilities towards the environment and society. We use technologies that are friendly to the environment and comply with the environmental codes. We have created adequate facilities and employed appropriate process that can naturally recycle the effluent coming out of the manufacturing plant and keep the environmental effects of the manufacturing activities to acceptable minimum levels. All our manufacturing facilities have certification from the Department of Environment of the Government of Bangladesh. SOCIAL RESPONSIBILITIES BPL is always aware of its obligation to the society it operates in. All our activities are therefore, directed to the well being of the society in general. Recognizing our responsibilities, BPL actively takes part in different philanthropic and social activities that have direct implication on the well being of the people. As part of its social commitments BPL extended its support to various socio-cultural and philanthropic organizations and institutions throughout the year. As an encouragement to sports and culture, we not only took part in the different cricket tournaments but sponsored them as well. Besides, we sponsored news supplements on important occasions, assisted in healthcare awareness development programs and arranged seminars and symposium to disseminate information on the latest development on health and medicine. We firmly believe that long-term business success is possible only through policies and practices that aim at creating value while maintaining economic, social and environmental sustainability. ACKNOWLEDGEMENT I would like to express my sincere thanks to all BPL employees for their commitment, professionalism and hard work. Without their skill and dedication BPL would not have been able to achieve today’s position. I also extend my heartfelt thanks to our medical community, customers, bankers, suppliers, government agencies, regulatory bodies and everyone we interacted with in conducting our business. I would also like to extend sincere gratitude to our valued shareholders and stakeholders for extending at all times their invaluable support and co-operation. Once again, on behalf of the Board of Directors and on my behalf, I convey my heartiest thanks to you all and look forward to your continued support and co-operation in the future as well. Thank you all. A S F Rahman Chairman Dhaka 27 April, 2004 32 33 Improved Gross Margin Consequent to our constant drive to contain cost and improve profitability we have managed to improve our gross margin by 2.51%. However, savings in the material cost was partially offset by increase in the selling and distribution expenses due to strategic investment in distribution logistics and network, strengthening of sales-force coupled with increased investment in record number of new products. The benefit of all these could be reaped in the coming years. Restructuring of Basic Chemical Portfolio As I mentioned in my last report, major products of our basic chemical portfolio Amoxycillin & Ampicillin have already reached their maturity. Besides, stiff competition accompanied by rising material cost is gradually eroding the profit margin of these products. Therefore, we found it prudent to discontinue manufacture of Ampicillin and Amoxycillin from 2004. However, thanks to our R & D team, it is due to their innovative efforts, a number of new products are now in the pipeline. Introduction of these high-value high-margin products will give a new life to our basic chemical portfolio. Given the above scenario, we believe that your company is now poised for better future. If things go right, we will have a better landing by the end of 2004. NEW PRODUCT PERFORMANCE Our efforts to optimize the product portfolios continued uninterruptedly in 2003 also. Consequent to our intense Research and Development activities and drive to innovate quality products we have, as mentioned earlier, added 26 brands of 40 different dosage forms and strengths to the existing product portfolio. But beyond numbers, the performance of these products in terms of their sales potential as well as their contribution in catering to the unmet healthcare need is worth mentioning. You will be pleased to know that two of the new brands namely Bextrum and Frenxit have emerged as market leader on the very first year of its launching. Zocil, one of our new Brand is a unique product introduced solely by BPL. Through introduction of Anti-HIV products we have set another milestone. We have also pioneered the local manufacture of Anti-Cancer drugs in 2003. These have taken the image of your company to a further height in national and international arena. Other products launched during the year have also got wide acceptance and appreciation from the medical community. FUTURE PLAN As we enter into the post WTO era, pharmaceutical sector like all other industries are going to face new challenges. Besides, with emergence of new pharmaceutical companies competition in the local pharmaceutical market is expected to intensify further. We are mindful of the challenges and confident about our capabilities to face them. Fortunately Bangladesh as a least developed country is exempted from mandatory patent protection up to 2016. This has created a new window of opportunities for us. We will explore all potential avenues to make best use of the opportunities. Recognizing today’s unmet needs of healthcare market place - our marketing strategy will continue to focus on value added but cost effective medicines. Our future strategy will continue to concentrate on retaining and expanding the domestic market share. Increased focus will also be there in developing new formulations and dosage forms. Along with domestic market, new avenues in the international market will also be extensively searched. Our new US FDAapprovable plant will be instrumental towards this direction. EXPANSION PROJECT As I mentioned in my last report, in the context of turbulence in the global economy particularly after 9/11, we found it prudent to defer procurement of plant and machinery for our US FDA approvable plant till such time as the depressed economic scenario undergo sustainable improvement. I am pleased to inform that the work on the project is now going on in full pace. The procurement of plant and machinery is in progress. Civil and other soft and hard tasks is complete to required extent. We have entered into an agreement with Pharmaplan, India who will provide assistance in areas such as erection and installation of machinery complying cGMP, Validation Documentation, GMP training etc., and obtaining UK MCA/US FDA certification. Our revised target is to bring the project at ready –for –inspection status by early 2005. CONTRIBUTION TO NATIONAL EXCHEQUER During 2003, BPL contributed Tk. 443.50 million in the form of import related taxes, VAT and Income tax to the national exchequer. ENVIRONMENT As a good corporate citizen, BPL has long accepted its responsibilities towards the environment and society. We use technologies that are friendly to the environment and comply with the environmental codes. We have created adequate facilities and employed appropriate process that can naturally recycle the effluent coming out of the manufacturing plant and keep the environmental effects of the manufacturing activities to acceptable minimum levels. All our manufacturing facilities have certification from the Department of Environment of the Government of Bangladesh. SOCIAL RESPONSIBILITIES BPL is always aware of its obligation to the society it operates in. All our activities are therefore, directed to the well being of the society in general. Recognizing our responsibilities, BPL actively takes part in different philanthropic and social activities that have direct implication on the well being of the people. As part of its social commitments BPL extended its support to various socio-cultural and philanthropic organizations and institutions throughout the year. As an encouragement to sports and culture, we not only took part in the different cricket tournaments but sponsored them as well. Besides, we sponsored news supplements on important occasions, assisted in healthcare awareness development programs and arranged seminars and symposium to disseminate information on the latest development on health and medicine. We firmly believe that long-term business success is possible only through policies and practices that aim at creating value while maintaining economic, social and environmental sustainability. ACKNOWLEDGEMENT I would like to express my sincere thanks to all BPL employees for their commitment, professionalism and hard work. Without their skill and dedication BPL would not have been able to achieve today’s position. I also extend my heartfelt thanks to our medical community, customers, bankers, suppliers, government agencies, regulatory bodies and everyone we interacted with in conducting our business. I would also like to extend sincere gratitude to our valued shareholders and stakeholders for extending at all times their invaluable support and co-operation. Once again, on behalf of the Board of Directors and on my behalf, I convey my heartiest thanks to you all and look forward to your continued support and co-operation in the future as well. Thank you all. A S F Rahman Chairman Dhaka 27 April, 2004 32 33 Statement on Corporate Governance In BPL we always nurture and nourish good corporate governance. Board of BPL places greatest emphasis on maintaining the highest standard of corporate governance. As trustee of all the stakeholders of the company, the board is fully aware of its responsibilities and therefore, endeavors to safeguard the interest of all concerned. The statement below describes how the principles of good governance are applied in BPL. Size, Composition and functioning of the Board The board of directors is the highest level of authority in the organization structure of BPL. The board is responsible for the overall direction and is ultimately accountable to the shareholders for the activities, strategies and performance of the company. Currently, the board of directors of BPL comprises of 11 members with Mr. A S F Rahman as Chairman and Mr. Salman F Rahman as Vice Chairman. The prime concern of the board is to ensure that the overall activities of the business are conducted responsibly and with focus on long – term value creation. The board meets periodically to transact matters placed before them that require board’s approval and/or direction. Board reviews the overall activities of the business and where necessary, strategic guidelines are given for onward implementation. Executive Committee Next to the board, there is a four-member Executive Committee for closer monitoring of business performance and to provide operational guidance. The scope of work of the committee includes but not limited to, review of business performance, approval of budget, evaluation of capital expenditure proposals and if appropriate recommendation for approval to the board, appraisal of senior level managers etc., The review, evaluation and recommendations of the Executive Committee provide significant input to enable the board to take well-informed decisions. Management Committee The responsibility to implement EC decisions and supervision of day to day business affairs of the company lies with the management committee. They are also responsible for achieving the business plan. The committee consists of functional heads of different operating/business segments and is headed by CEO. The committee meets once a month and extensively reviews the overall activities of each segments of business. Internal Control BPLemploys a sound system of internal control including internal financial control to ensure compliance of its activities with the desired objectives. The effectiveness of the control mechanism already in place is periodically reviewed. There are systems for careful monitoring of the activities to make sure that the standard and procedures set out for each business function is being effectively complied with. Key features of the BPL’s internal control system are: Management Structure: Over the years we have successfully implemented a well designed corporate management structure with clearly defined responsibility, delegation of authority and proper accountability. BPL has an appropriate organization structure manned with qualified professionals for properly carrying out planning, executing, controlling and monitoring function of each of the business subunits. Reporting and Communication In BPL, operational as well as financial reporting at periodic intervals for internal review and analysis is a routine phenomenon. Each department or business unit is required to report to the senior management about their operational performance. Business plans as well as short & long term business strategies are reviewed at different management levels on regular basis. The company has long practiced budgetary control system. The operational units are required to prepare annual budgets which are approved by the Executive Committee. Actual performance against the budget is actively monitored throughout the year at the business unit and the central management level. Internal Audit The company has a specially assigned team to carry out internal financial audits of different segments of the business. The team is headed by a manager who reports to the CEO. After appropriate review of the report necessary corrective actions are undertaken. Shareholder Relations The Company has about fifty thousand shareholders. The directors place high importance on maintaining good relationships with the shareholders and ensure to keep them informed of significant company developments. The company formally reports twice a year-summarized half yearly report and detailed annual report. Annual general meeting is an important opportunity to meet and communicate with shareholders. Every Shareholder or his duly authorized representative has the right to attend such meeting. It provides the forum for discussion of the business, its future prospects and other matters of interest and concern to the shareholders. In addition, the Company has a full fledged corporate affairs secretarial department who addresses different issues like dividend payment enquiries, share transfer, loss of share certificate/dividend warrants etc. Statement of Directors’ Responsibilities for preparation and presentation of the financial statements The following statement is made to distinguish the responsibilities of the directors and the auditors in relation to the preparation of financial statements. The Companies Act 1994 requires the directors to prepare financial statements for each financial year. In preparing those financial statements directors are required: To select suitable accounting policies and apply those policies consistently; To make reasonable and prudent judgments and estimates where necessary; To state whether all applicable accounting standards have been followed, subject to any material departure disclosed and explained in the notes to the financial statements; To take such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities; To ensure that the company keeps accounting records which disclose with reasonable accuracy the financial position of the company and which enable them to ensure that the financial statements comply with requirements of the Companies Act 1994 and the Securities and Exchange Rules 1987; and To prepare the financial statement on going concern basis unless it is inappropriate to presume that the company will continue in business; Going Concern Directors are convinced after making appropriate enquires at the time of approving the financial statements that the company has adequate resources to carry out its operational existence for the foreseeable future. It is therefore appropriate to adopt going concern basis in preparing the financial statements. 34 35 Statement on Corporate Governance In BPL we always nurture and nourish good corporate governance. Board of BPL places greatest emphasis on maintaining the highest standard of corporate governance. As trustee of all the stakeholders of the company, the board is fully aware of its responsibilities and therefore, endeavors to safeguard the interest of all concerned. The statement below describes how the principles of good governance are applied in BPL. Size, Composition and functioning of the Board The board of directors is the highest level of authority in the organization structure of BPL. The board is responsible for the overall direction and is ultimately accountable to the shareholders for the activities, strategies and performance of the company. Currently, the board of directors of BPL comprises of 11 members with Mr. A S F Rahman as Chairman and Mr. Salman F Rahman as Vice Chairman. The prime concern of the board is to ensure that the overall activities of the business are conducted responsibly and with focus on long – term value creation. The board meets periodically to transact matters placed before them that require board’s approval and/or direction. Board reviews the overall activities of the business and where necessary, strategic guidelines are given for onward implementation. Executive Committee Next to the board, there is a four-member Executive Committee for closer monitoring of business performance and to provide operational guidance. The scope of work of the committee includes but not limited to, review of business performance, approval of budget, evaluation of capital expenditure proposals and if appropriate recommendation for approval to the board, appraisal of senior level managers etc., The review, evaluation and recommendations of the Executive Committee provide significant input to enable the board to take well-informed decisions. Management Committee The responsibility to implement EC decisions and supervision of day to day business affairs of the company lies with the management committee. They are also responsible for achieving the business plan. The committee consists of functional heads of different operating/business segments and is headed by CEO. The committee meets once a month and extensively reviews the overall activities of each segments of business. Internal Control BPLemploys a sound system of internal control including internal financial control to ensure compliance of its activities with the desired objectives. The effectiveness of the control mechanism already in place is periodically reviewed. There are systems for careful monitoring of the activities to make sure that the standard and procedures set out for each business function is being effectively complied with. Key features of the BPL’s internal control system are: Management Structure: Over the years we have successfully implemented a well designed corporate management structure with clearly defined responsibility, delegation of authority and proper accountability. BPL has an appropriate organization structure manned with qualified professionals for properly carrying out planning, executing, controlling and monitoring function of each of the business subunits. Reporting and Communication In BPL, operational as well as financial reporting at periodic intervals for internal review and analysis is a routine phenomenon. Each department or business unit is required to report to the senior management about their operational performance. Business plans as well as short & long term business strategies are reviewed at different management levels on regular basis. The company has long practiced budgetary control system. The operational units are required to prepare annual budgets which are approved by the Executive Committee. Actual performance against the budget is actively monitored throughout the year at the business unit and the central management level. Internal Audit The company has a specially assigned team to carry out internal financial audits of different segments of the business. The team is headed by a manager who reports to the CEO. After appropriate review of the report necessary corrective actions are undertaken. Shareholder Relations The Company has about fifty thousand shareholders. The directors place high importance on maintaining good relationships with the shareholders and ensure to keep them informed of significant company developments. The company formally reports twice a year-summarized half yearly report and detailed annual report. Annual general meeting is an important opportunity to meet and communicate with shareholders. Every Shareholder or his duly authorized representative has the right to attend such meeting. It provides the forum for discussion of the business, its future prospects and other matters of interest and concern to the shareholders. In addition, the Company has a full fledged corporate affairs secretarial department who addresses different issues like dividend payment enquiries, share transfer, loss of share certificate/dividend warrants etc. Statement of Directors’ Responsibilities for preparation and presentation of the financial statements The following statement is made to distinguish the responsibilities of the directors and the auditors in relation to the preparation of financial statements. The Companies Act 1994 requires the directors to prepare financial statements for each financial year. In preparing those financial statements directors are required: To select suitable accounting policies and apply those policies consistently; To make reasonable and prudent judgments and estimates where necessary; To state whether all applicable accounting standards have been followed, subject to any material departure disclosed and explained in the notes to the financial statements; To take such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities; To ensure that the company keeps accounting records which disclose with reasonable accuracy the financial position of the company and which enable them to ensure that the financial statements comply with requirements of the Companies Act 1994 and the Securities and Exchange Rules 1987; and To prepare the financial statement on going concern basis unless it is inappropriate to presume that the company will continue in business; Going Concern Directors are convinced after making appropriate enquires at the time of approving the financial statements that the company has adequate resources to carry out its operational existence for the foreseeable future. It is therefore appropriate to adopt going concern basis in preparing the financial statements. 34 35 Directors’ Report For the year ended 31 December 2003 The Directors are pleased to present their report to the shareholders together with the audited accounts for the year ended 31 December, 2003. Financial Results and Profit Appropriations Net Profit Before Providing Income Tax Less : Income Tax Expense Net Profit After Tax Add : Profit Brought Forward from Previous Year Profit Available for Appropriation Recommended for Appropriation: Transfer to Tax-Holiday Reserve Proposed Dividend Dividend Distribution Tax Un-appropriated Profit Carried Forward Figure in ‘000 Taka 2003 2002 263,618 (38,975) 224,643 1,421,656 1,646,299 (91,362) (101,775) (5,089) (198,226) 1,448,073 362,232 (20,552) 341,680 1,294,000 1,635,680 (125,524) (88,500) - (214,024) 1,421,656 Dividend The Board of Directors have recommended 10% cash dividend and 10% stock dividend (Bonus Share) for your approval for the year ended 31st December, 2003. Directors Mr. Salman F Rahman, Director of the company retires by rotation as per Articles 126 and 127 of the Articles of Association of the Company and being eligible, offer himself for re-election. Mr. Iqbal Ahmed (Nominee of Bangladesh Export Import Company Limited) and Mr. O. K. Chowdhury and Mr. A. B. Siddiqur Rahman (Nominees of Beximco Holdings Limited) Directors of the company, retire by rotation as per Articles 126 and 127 of the Articles of Association of the Company and being eligible, offer themselves for re-election. Auditors The Directors hereby report that the existing Auditors, M/S M. J. Abedin & Co., Chartered Accountants, National Plaza (6th Floor), 1/G Free School Street, Sonargaon Road, Dhaka-1205 who were appointed as Auditors of the Company in the Twenty- seventh Annual General Meeting of the Company have carried out the audit for the year ended 31 December 2003. M/S M.J. Abedin & Co., Chartered Accountants, National Plaza (6th Floor), 1/G Free School Street, Sonargaon Road, Dhaka-1205, the Auditors of the Company retire at this meeting and have expressed their willingness to continue in office for the year 2004. On behalf of the Board A S F Rahman Chairman Dhaka 27 April, 2004 36 BEXIMCO PHARMACEUTICALS LIMITED Report of Auditors to the Shareholders We have audited the accompanying Financial Statements of Beximco Pharmaceuticals Limited consisting of a Balance Sheet, a Profit and Loss Account and the Statement of Changes in Equity and Cash Flows as well as the Notes to the financial statements for the year from January 1 to December 31, 2003. The preparation and the content of the financial statements according to International Accounting Standards are the responsibility of the Company's board of directors. Our responsibility is to express an opinion, based on our audit. We conducted our audit in accordance with International Standards on Auditing adopted by the Institute of Chartered Accountants of Bangladesh. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Evidence supporting the amounts and disclosures in the financial statements is examined on a test basis within the framework of the audit. An audit also includes assessing the accounting principles used and significant estimates made by the board of directors, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit, the financial statements referred to above give a true and fair view of the financial position, the results of operations and cash flows of the company, in all material respects, for the year referred to above, in accordance with the Companies Act 1994, the Securities and Exchange Rules 1987 and the International Accounting Standards adopted by the ICAB. We also report that : (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof; (b) (c) in our opinion, proper books of accounts as required by law have been kept by the company so far as it appeared from our examination of those books ; the Company's Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts ; and (d) the expenditures incurred were for the purpose of the Company's business. M. J. ABEDIN & CO. Chartered Accountants National Plaza (6th Floor) 1/G, Sonargaon Road Dhaka - 1205 27 April, 2004 37 Directors’ Report For the year ended 31 December 2003 The Directors are pleased to present their report to the shareholders together with the audited accounts for the year ended 31 December, 2003. Financial Results and Profit Appropriations Net Profit Before Providing Income Tax Less : Income Tax Expense Net Profit After Tax Add : Profit Brought Forward from Previous Year Profit Available for Appropriation Recommended for Appropriation: Transfer to Tax-Holiday Reserve Proposed Dividend Dividend Distribution Tax Un-appropriated Profit Carried Forward Figure in ‘000 Taka 2003 2002 263,618 (38,975) 224,643 1,421,656 1,646,299 (91,362) (101,775) (5,089) (198,226) 1,448,073 362,232 (20,552) 341,680 1,294,000 1,635,680 (125,524) (88,500) - (214,024) 1,421,656 Dividend The Board of Directors have recommended 10% cash dividend and 10% stock dividend (Bonus Share) for your approval for the year ended 31st December, 2003. Directors Mr. Salman F Rahman, Director of the company retires by rotation as per Articles 126 and 127 of the Articles of Association of the Company and being eligible, offer himself for re-election. Mr. Iqbal Ahmed (Nominee of Bangladesh Export Import Company Limited) and Mr. O. K. Chowdhury and Mr. A. B. Siddiqur Rahman (Nominees of Beximco Holdings Limited) Directors of the company, retire by rotation as per Articles 126 and 127 of the Articles of Association of the Company and being eligible, offer themselves for re-election. Auditors The Directors hereby report that the existing Auditors, M/S M. J. Abedin & Co., Chartered Accountants, National Plaza (6th Floor), 1/G Free School Street, Sonargaon Road, Dhaka-1205 who were appointed as Auditors of the Company in the Twenty- seventh Annual General Meeting of the Company have carried out the audit for the year ended 31 December 2003. M/S M.J. Abedin & Co., Chartered Accountants, National Plaza (6th Floor), 1/G Free School Street, Sonargaon Road, Dhaka-1205, the Auditors of the Company retire at this meeting and have expressed their willingness to continue in office for the year 2004. On behalf of the Board A S F Rahman Chairman Dhaka 27 April, 2004 36 BEXIMCO PHARMACEUTICALS LIMITED Report of Auditors to the Shareholders We have audited the accompanying Financial Statements of Beximco Pharmaceuticals Limited consisting of a Balance Sheet, a Profit and Loss Account and the Statement of Changes in Equity and Cash Flows as well as the Notes to the financial statements for the year from January 1 to December 31, 2003. The preparation and the content of the financial statements according to International Accounting Standards are the responsibility of the Company's board of directors. Our responsibility is to express an opinion, based on our audit. We conducted our audit in accordance with International Standards on Auditing adopted by the Institute of Chartered Accountants of Bangladesh. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Evidence supporting the amounts and disclosures in the financial statements is examined on a test basis within the framework of the audit. An audit also includes assessing the accounting principles used and significant estimates made by the board of directors, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit, the financial statements referred to above give a true and fair view of the financial position, the results of operations and cash flows of the company, in all material respects, for the year referred to above, in accordance with the Companies Act 1994, the Securities and Exchange Rules 1987 and the International Accounting Standards adopted by the ICAB. We also report that : (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof; (b) (c) in our opinion, proper books of accounts as required by law have been kept by the company so far as it appeared from our examination of those books ; the Company's Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of accounts ; and (d) the expenditures incurred were for the purpose of the Company's business. M. J. ABEDIN & CO. Chartered Accountants National Plaza (6th Floor) 1/G, Sonargaon Road Dhaka - 1205 27 April, 2004 37 BEXIMCO PHARMACEUTICALS LIMITED Balance Sheet As at 31 December 2003 ASSETS Non-Current Assets Property, Plant and Equipment - Carrying Value Investment in Shares Current Assets Inventories Accounts Receivable Loans, Advances and Deposits Current Account with Related Parties Cash and Cash Equivalents TOTAL ASSETS EQUITYAND LIABILITIES Shareholders’ Equity Issued Share Capital Share Premium Tax-Holiday Reserve Retained Earnings Non-Current Liabilities Long Term Borrowing (Secured) Deferred Liability (Provision for Gratuity) Current Liabilities Customs Debentures Short Term Borrowing from Banks Creditors and Other Payables Accrued Expenses Dividend Payable Income Tax Payable TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY Accounting Policies Notes 2003 2002 16 17 18 19 20 21 5,940,092,996 5,895,916,746 44,176,250 2,088,113,545 1,143,710,812 499,677,576 439,813,290 - 4,911,867 4,780,464,825 4,739,921,075 40,543,750 1,982,226,375 1,113,539,289 447,307,967 357,470,885 58,555,415 5,352,819 Tk. 8,028,206,541 6,762,691,200 4,643,614,519 508,875,000 1,489,750,000 1,090,052,509 1,554,937,010 2,056,362,293 1,996,908,089 59,454,204 1,328,229,729 1,758,387 979,186,501 168,382,575 135,797,123 1,206,751 41,898,392 4,441,096,192 442,500,000 1,489,750,000 998,690,522 1,510,155,670 812,591,999 757,115,841 55,476,158 1,509,003,009 1,758,387 1,171,975,598 155,928,586 129,682,896 1,750,944 47,906,598 8,028,206,541 6,762,691,200 22 23 24 25 26 27 28 29 30 31 Tk. 15 BEXIMCO PHARMACEUTICALS LIMITED Profit and Loss Account For the year ended 31 December 2003 Notes 2003 2002 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses : Administrative Expenses Selling and Distribution Expenses Profit from Operations Other Income Finance Cost Net Profit Before Contribution to WPPF Contribution to Workers’Profit Participation / Welfare Funds Net Profit Before Tax Income Tax Expense Net Profit After Tax Transferred to Statement of Changes in Equity Earnings Per Share (Par value Tk. 10/-)/Adjusted EPSof 2002 Number of Shares used to Compute EPS Accounting Policies Figures in brackets indicate deductions. The notes are an integral part of the Financial Statements. 32 33 38 39 40 41 42 43 45 15 2,183,829,795 2,508,788,068 (1,355,748,848) (1,620,493,149) 828,080,947 888,294,919 (397,998,572) (84,329,332) (313,669,240) (343,185,534) (79,926,759) (263,258,775) 430,082,375 545,109,385 3,318,590 (156,601,506) 276,799,459 7,266,435 (170,994,495) 381,381,325 (13,180,926) (19,148,862) 263,618,533 (38,975,206) 224,643,327 362,232,463 (20,552,415) 341,680,048 4.41 6.71 50,887,500 50,887,500 Tk. Tk. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board: The notes are an integral part of the Financial Statements. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board : C. H. Rahman Director Iqbal Ahmed Director C. H. Rahman Director Iqbal Ahmed Director Dhaka 27 April 2004 38 Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants Dhaka 27 April 2004 Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants 39 BEXIMCO PHARMACEUTICALS LIMITED Balance Sheet As at 31 December 2003 ASSETS Non-Current Assets Property, Plant and Equipment - Carrying Value Investment in Shares Current Assets Inventories Accounts Receivable Loans, Advances and Deposits Current Account with Related Parties Cash and Cash Equivalents TOTAL ASSETS EQUITYAND LIABILITIES Shareholders’ Equity Issued Share Capital Share Premium Tax-Holiday Reserve Retained Earnings Non-Current Liabilities Long Term Borrowing (Secured) Deferred Liability (Provision for Gratuity) Current Liabilities Customs Debentures Short Term Borrowing from Banks Creditors and Other Payables Accrued Expenses Dividend Payable Income Tax Payable TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY Accounting Policies Notes 2003 2002 16 17 18 19 20 21 5,940,092,996 5,895,916,746 44,176,250 2,088,113,545 1,143,710,812 499,677,576 439,813,290 - 4,911,867 4,780,464,825 4,739,921,075 40,543,750 1,982,226,375 1,113,539,289 447,307,967 357,470,885 58,555,415 5,352,819 Tk. 8,028,206,541 6,762,691,200 4,643,614,519 508,875,000 1,489,750,000 1,090,052,509 1,554,937,010 2,056,362,293 1,996,908,089 59,454,204 1,328,229,729 1,758,387 979,186,501 168,382,575 135,797,123 1,206,751 41,898,392 4,441,096,192 442,500,000 1,489,750,000 998,690,522 1,510,155,670 812,591,999 757,115,841 55,476,158 1,509,003,009 1,758,387 1,171,975,598 155,928,586 129,682,896 1,750,944 47,906,598 8,028,206,541 6,762,691,200 22 23 24 25 26 27 28 29 30 31 Tk. 15 BEXIMCO PHARMACEUTICALS LIMITED Profit and Loss Account For the year ended 31 December 2003 Notes 2003 2002 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses : Administrative Expenses Selling and Distribution Expenses Profit from Operations Other Income Finance Cost Net Profit Before Contribution to WPPF Contribution to Workers’Profit Participation / Welfare Funds Net Profit Before Tax Income Tax Expense Net Profit After Tax Transferred to Statement of Changes in Equity Earnings Per Share (Par value Tk. 10/-)/Adjusted EPSof 2002 Number of Shares used to Compute EPS Accounting Policies Figures in brackets indicate deductions. The notes are an integral part of the Financial Statements. 32 33 38 39 40 41 42 43 45 15 2,183,829,795 2,508,788,068 (1,355,748,848) (1,620,493,149) 828,080,947 888,294,919 (397,998,572) (84,329,332) (313,669,240) (343,185,534) (79,926,759) (263,258,775) 430,082,375 545,109,385 3,318,590 (156,601,506) 276,799,459 7,266,435 (170,994,495) 381,381,325 (13,180,926) (19,148,862) 263,618,533 (38,975,206) 224,643,327 362,232,463 (20,552,415) 341,680,048 4.41 6.71 50,887,500 50,887,500 Tk. Tk. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board: The notes are an integral part of the Financial Statements. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board : C. H. Rahman Director Iqbal Ahmed Director C. H. Rahman Director Iqbal Ahmed Director Dhaka 27 April 2004 38 Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants Dhaka 27 April 2004 Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants 39 BEXIMCO PHARMACEUTICALS LIMITED Statement of Changes in Equity For the year ended 31 December 2003 Share Capital Share Premium Tax-Holiday Reserve Retained Earnings Total At the beginning of year 442,500,000 1,489,750,000 998,690,522 1,510,155,670 4,441,096,192 Net Profit after Tax for 2003 Transfer to Tax-Holiday Reserve (Note-44) - - Issue of Bonus Shares for prior period (2002) 66,375,000 Cash Dividend of prior period (2002) - - - - - - 224,643,327 224,643,327 91,361,987 ( 91,361,987) (66,375,000) - - (22,125,000) (22,125,000) - - At the end of year Tk. 508,875,000 1,489,750,000 1,090,052,509 1,554,937,010 4,643,614,519 Total Number of Shares Shareholders’Equity per Share Accounting Policies 15 50,887,500 Tk. 91.25 The notes are an integral part of the Financial Statements. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board: C. H. Rahman Director Dhaka 27 April 2004 Iqbal Ahmed Director Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants BEXIMCO PHARMACEUTICALS LIMITED Cash Flow Statement For the year ended 31 December 2003 Notes 2003 2002 2,132,995,400 (1,812,290,311) 320,705,089 (143,159,432) (18,348,675) 159,196,982 (401,232,733) (1,000,000) 66,846,147 (335,386,586) 58,555,415 332,651,526 (192,789,096) (22,669,193) 175,748,652 (440,952) 5,352,819 2,416,212,879 (2,082,347,956) 333,864,923 (161,521,864) (31,431,703) 140,911,356 (293,060,782) - 1,249,336 (291,811,446) (9,803,901) 100,469,477 90,070,923 (67,504,990) 113,231,509 (37,668,582) 43,021,401 4,911,867 5,352,819 46 Tk. 15 Cash Flows from Operating Activities : Cash Receipts from Customers and Others Cash Paid to Suppliers and Employees Cash Generated from Operations Interest Paid Income Tax Paid & Deducted at Source Net Cash Generated from Operating Activities Cash Flows from Investing Activities : Acquisition of Property, Plant and Equipment Investment in Shares Disposal of Property, Plant and Equipment Net Cash Used in Investing Activities Cash Flows from Financing Activities : (Increase)/ Decrease in Current Account with Related Parties Increase in Long Term Borrowings Increase/ (Decrease) in Short Term Borrowing from Banks Dividend Paid Net Cash Generated in Financing Activities (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Accounting Policies Figures in brackets indicate deductions. The notes are an integral part of the Financial Statements. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board: C. H. Rahman Director Iqbal Ahmed Director Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants Dhaka 27 April 2004 40 41 BEXIMCO PHARMACEUTICALS LIMITED Statement of Changes in Equity For the year ended 31 December 2003 Share Capital Share Premium Tax-Holiday Reserve Retained Earnings Total At the beginning of year 442,500,000 1,489,750,000 998,690,522 1,510,155,670 4,441,096,192 Net Profit after Tax for 2003 Transfer to Tax-Holiday Reserve (Note-44) - - Issue of Bonus Shares for prior period (2002) 66,375,000 Cash Dividend of prior period (2002) - - - - - - 224,643,327 224,643,327 91,361,987 ( 91,361,987) (66,375,000) - - (22,125,000) (22,125,000) - - At the end of year Tk. 508,875,000 1,489,750,000 1,090,052,509 1,554,937,010 4,643,614,519 Total Number of Shares Shareholders’Equity per Share Accounting Policies 15 50,887,500 Tk. 91.25 The notes are an integral part of the Financial Statements. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board: C. H. Rahman Director Dhaka 27 April 2004 Iqbal Ahmed Director Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants BEXIMCO PHARMACEUTICALS LIMITED Cash Flow Statement For the year ended 31 December 2003 Notes 2003 2002 2,132,995,400 (1,812,290,311) 320,705,089 (143,159,432) (18,348,675) 159,196,982 (401,232,733) (1,000,000) 66,846,147 (335,386,586) 58,555,415 332,651,526 (192,789,096) (22,669,193) 175,748,652 (440,952) 5,352,819 2,416,212,879 (2,082,347,956) 333,864,923 (161,521,864) (31,431,703) 140,911,356 (293,060,782) - 1,249,336 (291,811,446) (9,803,901) 100,469,477 90,070,923 (67,504,990) 113,231,509 (37,668,582) 43,021,401 4,911,867 5,352,819 46 Tk. 15 Cash Flows from Operating Activities : Cash Receipts from Customers and Others Cash Paid to Suppliers and Employees Cash Generated from Operations Interest Paid Income Tax Paid & Deducted at Source Net Cash Generated from Operating Activities Cash Flows from Investing Activities : Acquisition of Property, Plant and Equipment Investment in Shares Disposal of Property, Plant and Equipment Net Cash Used in Investing Activities Cash Flows from Financing Activities : (Increase)/ Decrease in Current Account with Related Parties Increase in Long Term Borrowings Increase/ (Decrease) in Short Term Borrowing from Banks Dividend Paid Net Cash Generated in Financing Activities (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Accounting Policies Figures in brackets indicate deductions. The notes are an integral part of the Financial Statements. Approved and authorised for issue by the board of directors on 27 April 2004 and signed for and on behalf of the Board: C. H. Rahman Director Iqbal Ahmed Director Md. Asad Ullah Company Secretary Per our report of even date. M. J. Abedin & Co. Chartered Accountants Dhaka 27 April 2004 40 41 BEXIMCO PHARMACEUTICALS LIMITED Index to the Notes to the Financial Statements - 2003 BEXIMCO PHARMACEUTICALS LIMITED Notes to the Financial Statements 31 December 2003 Related Party Transactions Financial Instruments 1. Corporate History of the Reporting Entity 2. Corporate Business 3. Corporate Financial Statements and Reporting 4. Corporate Accounting Standards Practiced 5. 6. 7. Concentration of Counterparty Risk 8. Net Profit Before Tax 9. 10. Comparative Amounts 11. Segment Reporting 12. Recognized Gains and Losses 13. Historical Cost Profit and Losses 14. Accounting for Dividend (Cash and Bonus Shares) of Prior Reporting Currency and Level of Precision Period (2002) Investment in Shares Inventories 15. Corporate Accounting Policies 16. Property, Plant and Equipment 17. 18. 19. Accounts Receivable 20. Loan, Advances and Deposits 21. Cash and Cash Equivalents 22. Issued Share Capital 23. Share Premium 24. Tax Holiday Reserve 25. Long Term Borrowing (Secured) 26. Deferred Liability (Provision for Gratuity) 27. Customs Debentures 28. Short Term Borrowing from Banks 29. Creditors and Other Payables 30. Accrued Expenses 31. 32. Net Sales Revenue 33. Cost of Goods Sold 34. Raw Material Consumed 35. Packing Material Consumed 36. Laboratory Chemical Consumed 37. Factory Overhead 38. Administrative Expenses 39. Selling and Distribution Expenses 40. Other Income 41. Finance Cost 42. Contribution to Workers’Profit Participation/ Welfare Fund 43. Income Tax Expense 44. Tax-Holiday Reserve Income Tax Payable 45. Basic Earnings per Share (EPS) 46. Cash Flow From Operation Under Indirect Method 47. Related Party Transactions 48. Financial Instruments and Related Disclosures 49. Particulars of Disposal of Property, Plant & Equipment 50. Payments/Perquisites to Directors and Officers 51. Production Capacity, Actual Production in 2003 and Reason of Excess/(Shortfall) 52. Capital Expenditure Commitment 53. Operating Lease Commitments 54. Claim not Acknowledged as Debt 55. Un-availed Credit Facilities 56. Payment in Foreign Currency 57. Dividend Paid to the Non-Resident Shareholders in 2003 58. Foreign Exchange Earned 59. Commission, Brokerage or Discount against Sales 60. Post Closing Events 1. Corporate History of the Reporting Entity Beximco Pharmaceuticals Ltd. (the "Company"), a member of BEXIMCO Group, came into existence as a public limited company in 1976. It commenced commercial operation in 1980 and went for public issue of shares in 1985. The shares of the company are listed with the Dhaka and Chittagong Stock Exchanges of Bangladesh. The registered office of the company is located at House No 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are located at Kathaldia, Auspara, Tongi, Gazipur. 2. Corporate Business The Company operates in a single industry segment. It has it’s own manufacturing facilities. The principal activities of the company are manufacturing of formulation and bulk drugs and sales of the produced items home and abroad. 3. Corporate Financial Statements and Reportings This comprises Balance Sheet, Profit and Loss Account, Statement of Changes in Equity, Cash Flow Statement and explanatory notes covering accounting policies. This is prepared under the historical cost convention and in accordance with the requirements of the Companies Act 1994, the Securities and Exchange Rules 1987, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and the International Accounting Standards (IASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). The Board of Directors are responsible for preparing and presenting the financial statements including adequate disclosures, who approved and authorized for issue of these financial statements. requires board of directors to make estimates and assumptions that The preparation of financial statements in conformity with International Accounting Standards affect the reported amounts of revenues and expenses, assets and liabilities and the disclosure of contingent assets and liabilities at the date of and during the reporting period. Due to the inherent uncertainty involved in making estimates, actual result reported could differ from those estimates. 42 43 BEXIMCO PHARMACEUTICALS LIMITED Index to the Notes to the Financial Statements - 2003 BEXIMCO PHARMACEUTICALS LIMITED Notes to the Financial Statements 31 December 2003 Related Party Transactions Financial Instruments 1. Corporate History of the Reporting Entity 2. Corporate Business 3. Corporate Financial Statements and Reporting 4. Corporate Accounting Standards Practiced 5. 6. 7. Concentration of Counterparty Risk 8. Net Profit Before Tax 9. 10. Comparative Amounts 11. Segment Reporting 12. Recognized Gains and Losses 13. Historical Cost Profit and Losses 14. Accounting for Dividend (Cash and Bonus Shares) of Prior Reporting Currency and Level of Precision Period (2002) Investment in Shares Inventories 15. Corporate Accounting Policies 16. Property, Plant and Equipment 17. 18. 19. Accounts Receivable 20. Loan, Advances and Deposits 21. Cash and Cash Equivalents 22. Issued Share Capital 23. Share Premium 24. Tax Holiday Reserve 25. Long Term Borrowing (Secured) 26. Deferred Liability (Provision for Gratuity) 27. Customs Debentures 28. Short Term Borrowing from Banks 29. Creditors and Other Payables 30. Accrued Expenses 31. 32. Net Sales Revenue 33. Cost of Goods Sold 34. Raw Material Consumed 35. Packing Material Consumed 36. Laboratory Chemical Consumed 37. Factory Overhead 38. Administrative Expenses 39. Selling and Distribution Expenses 40. Other Income 41. Finance Cost 42. Contribution to Workers’Profit Participation/ Welfare Fund 43. Income Tax Expense 44. Tax-Holiday Reserve Income Tax Payable 45. Basic Earnings per Share (EPS) 46. Cash Flow From Operation Under Indirect Method 47. Related Party Transactions 48. Financial Instruments and Related Disclosures 49. Particulars of Disposal of Property, Plant & Equipment 50. Payments/Perquisites to Directors and Officers 51. Production Capacity, Actual Production in 2003 and Reason of Excess/(Shortfall) 52. Capital Expenditure Commitment 53. Operating Lease Commitments 54. Claim not Acknowledged as Debt 55. Un-availed Credit Facilities 56. Payment in Foreign Currency 57. Dividend Paid to the Non-Resident Shareholders in 2003 58. Foreign Exchange Earned 59. Commission, Brokerage or Discount against Sales 60. Post Closing Events 1. Corporate History of the Reporting Entity Beximco Pharmaceuticals Ltd. (the "Company"), a member of BEXIMCO Group, came into existence as a public limited company in 1976. It commenced commercial operation in 1980 and went for public issue of shares in 1985. The shares of the company are listed with the Dhaka and Chittagong Stock Exchanges of Bangladesh. The registered office of the company is located at House No 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are located at Kathaldia, Auspara, Tongi, Gazipur. 2. Corporate Business The Company operates in a single industry segment. It has it’s own manufacturing facilities. The principal activities of the company are manufacturing of formulation and bulk drugs and sales of the produced items home and abroad. 3. Corporate Financial Statements and Reportings This comprises Balance Sheet, Profit and Loss Account, Statement of Changes in Equity, Cash Flow Statement and explanatory notes covering accounting policies. This is prepared under the historical cost convention and in accordance with the requirements of the Companies Act 1994, the Securities and Exchange Rules 1987, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and the International Accounting Standards (IASs) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). The Board of Directors are responsible for preparing and presenting the financial statements including adequate disclosures, who approved and authorized for issue of these financial statements. requires board of directors to make estimates and assumptions that The preparation of financial statements in conformity with International Accounting Standards affect the reported amounts of revenues and expenses, assets and liabilities and the disclosure of contingent assets and liabilities at the date of and during the reporting period. Due to the inherent uncertainty involved in making estimates, actual result reported could differ from those estimates. 42 43 4. Corporate Accounting Standards Practiced 7. Concentration of Counterparty Risk The ICAB has adopted to date the following IASs for Bangladesh : Presentation of Financial Statements 1 IAS Inventories 2 IAS Cash Flow Statements 7 IAS Net Profit or Loss for the period, Fundamental Errors and Changes in Accounting Policies 8 IAS Events after the Balance Sheet Date IAS 10 Construction Contracts IAS 11 Income Taxes 12 IAS Segment Reporting 14 IAS Property, Plant and Equipment 16 IAS Leases 17 IAS Revenue 18 IAS Employee Benefits 19 IAS Accounting for Government Grants 20 IAS The effects of Changes in Foreign Exchange Rates 21 IAS Business Combinations 22 IAS Borrowing Costs 23 IAS Related Party Disclosures 24 IAS Accounting for Investment 25 IAS Accounting and Reporting by Retirement Benefit Plans 26 IAS 27 IAS Consolidated Financial Statements and Accounting for Investments in Subsidiaries 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions IAS 31 IAS 33 IAS 34 IAS 36 IAS 37 IAS Financial Reporting of Interests in Joint Ventures Earnings Per Share Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Of the IASs referred above, IASs 1,2,7,8,10,12,16,18,21,23, 25,33 and 37 are applicable for the accompanied financial statements and the remaining IASs either are not relevant for the financial statements under review or not effective for the year under review. 5. Related Party Transactions All the related party transactions have been accounted for, considering these on arms' length basis, the details of which are disclosed in Note 47. 6. Financial Instruments Following information relating to the company's financial instruments have been disclosed in Note 48: (a) (b) (c) primary and derivative financial instruments ; exposures related to credit risk, interest rate risk and foreign currency risk ; and fair value and market value of financial instruments. As of 31 December 2003, the Company does not have any significant concentration of business transacted with a particular customer, supplier or lender that could, if suddenly eliminated, severely impact the company's operations. The company also does not have any concentration of available sources of labour, services or licences or other rights that could, if suddenly eliminated, severely impact on the operations of the company. 8. Net Profit Before Tax Net Profit Before Tax for the year were not materially affected by : (a) (b) (c) (d) transactions of a nature not usually undertaken by the company ; circumstances of an exceptional or non-recurring nature ; charges or credits relating to prior years ; and changes in accounting policies. 9. Reporting Currency and Level of Precision The financial statements are presented in Bangladesh currency (Taka), which have been rounded off to the nearest Taka except where indicated otherwise. Figures in brackets indicate deductions. 10. Comparative Amounts Wherever necessary figures of the prior year has been re-arranged to conform with the current year's presentation. 11. Segment Reporting This is not relevant for the company as it has single business and geographic segment. 12. Recognized Gains and Losses Net profit after tax for the year is the total recognized gains as no gain or loss for the year was directly dealt with through the shareholders' equity without being recognized in the profit and loss account. 13. Historical Cost Profit and Losses There was no extraordinary item, hence there was no difference in profit on ordinary activities before taxation and the net profit before tax. In addition, there was no revaluation of fixed assets in previous years and during the year under review. Therefore, there was no factor like the differences between historical cost depreciation and depreciation on revalued amount, realization of revenue surplus on retirement or disposal of assets, etc. Accordingly, no separate note of historical cost profit and loss has been presented. 44 45 4. Corporate Accounting Standards Practiced 7. Concentration of Counterparty Risk The ICAB has adopted to date the following IASs for Bangladesh : Presentation of Financial Statements 1 IAS Inventories 2 IAS Cash Flow Statements 7 IAS Net Profit or Loss for the period, Fundamental Errors and Changes in Accounting Policies 8 IAS Events after the Balance Sheet Date IAS 10 Construction Contracts IAS 11 Income Taxes 12 IAS Segment Reporting 14 IAS Property, Plant and Equipment 16 IAS Leases 17 IAS Revenue 18 IAS Employee Benefits 19 IAS Accounting for Government Grants 20 IAS The effects of Changes in Foreign Exchange Rates 21 IAS Business Combinations 22 IAS Borrowing Costs 23 IAS Related Party Disclosures 24 IAS Accounting for Investment 25 IAS Accounting and Reporting by Retirement Benefit Plans 26 IAS 27 IAS Consolidated Financial Statements and Accounting for Investments in Subsidiaries 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions IAS 31 IAS 33 IAS 34 IAS 36 IAS 37 IAS Financial Reporting of Interests in Joint Ventures Earnings Per Share Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Of the IASs referred above, IASs 1,2,7,8,10,12,16,18,21,23, 25,33 and 37 are applicable for the accompanied financial statements and the remaining IASs either are not relevant for the financial statements under review or not effective for the year under review. 5. Related Party Transactions All the related party transactions have been accounted for, considering these on arms' length basis, the details of which are disclosed in Note 47. 6. Financial Instruments Following information relating to the company's financial instruments have been disclosed in Note 48: (a) (b) (c) primary and derivative financial instruments ; exposures related to credit risk, interest rate risk and foreign currency risk ; and fair value and market value of financial instruments. As of 31 December 2003, the Company does not have any significant concentration of business transacted with a particular customer, supplier or lender that could, if suddenly eliminated, severely impact the company's operations. The company also does not have any concentration of available sources of labour, services or licences or other rights that could, if suddenly eliminated, severely impact on the operations of the company. 8. Net Profit Before Tax Net Profit Before Tax for the year were not materially affected by : (a) (b) (c) (d) transactions of a nature not usually undertaken by the company ; circumstances of an exceptional or non-recurring nature ; charges or credits relating to prior years ; and changes in accounting policies. 9. Reporting Currency and Level of Precision The financial statements are presented in Bangladesh currency (Taka), which have been rounded off to the nearest Taka except where indicated otherwise. Figures in brackets indicate deductions. 10. Comparative Amounts Wherever necessary figures of the prior year has been re-arranged to conform with the current year's presentation. 11. Segment Reporting This is not relevant for the company as it has single business and geographic segment. 12. Recognized Gains and Losses Net profit after tax for the year is the total recognized gains as no gain or loss for the year was directly dealt with through the shareholders' equity without being recognized in the profit and loss account. 13. Historical Cost Profit and Losses There was no extraordinary item, hence there was no difference in profit on ordinary activities before taxation and the net profit before tax. In addition, there was no revaluation of fixed assets in previous years and during the year under review. Therefore, there was no factor like the differences between historical cost depreciation and depreciation on revalued amount, realization of revenue surplus on retirement or disposal of assets, etc. Accordingly, no separate note of historical cost profit and loss has been presented. 44 45 14. Accounting for Dividend (Cash and Bonus Shares) of Previous year (2002) Shareholders in the 27th Annual General Meeting of the Company held on June 24, 2003 approved 5% cash dividend and 15% stock dividend for the year 2002. Accordingly, total dividend amount of Tk. 88,500,000 in respect of 2002 (cash dividend of Tk. 22,125,000 and bonus shares of Tk. 66,375,000) have been accounted for in 2003. 15. Corporate Accounting Policies (a) Revenue Recognition Sales are recorded at the time of delivery of products along with issue of invoices. In conformity with the requirements of provisions of IAS 18 "Revenue", VAT as included in sales price and collected on behalf of customers is not considered as "Revenue". Dividend income on investment in shares has been recognized on approval of said dividend in the annual general meeting of relevant company. (b) Property, Plant and Equipment All property, plant and equipment is initially recorded at cost and depreciated over their expected useful life. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use inclusive of inward freight, duties and non- refundable taxes. In respect of major projects involving construction, related pre-operational expenses form part of the value of asset capitalized. Expenses capitalized also include applicable borrowing cost. Expenditure incurred after the assets have been put into operation, such as repairs & maintenance, is normally charged off as revenue expenditure in the period in which it is incurred. In situation, where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use of the fixed assets, the expenditure is capitalized as an additional cost of the assets. Software are generally charged off as revenue expenditure. Fixed Assets include assets acquired under lease from Shamil Bank of Bahrain E.C. On retirement or otherwise disposal of fixed assets, the cost and accumulated depreciation are eliminated and, any gain or loss on such disposal is reflected in the profit and loss account which is determined with reference to the net book value of the assets and the net sales proceeds. (c) Depreciation No depreciation is charged on land. In respect of all other fixed assets, depreciation is provided to amortize the cost of the assets after commissioning, over their expected useful economic lives. Depreciation is computed using the reducing balance method. Full year's depreciation is charged on additions and no depreciation is provided on retirement, irrespective of date of addition or retirement respectively. The annual depreciation rates applicable to the principal categories of assets are : Building and Other Construction Plant and Machinery Furniture & Fixtures Transport & Vehicle Office Equipment 10% 15% 10% 20% 10% to 50% The whole amount of depreciation has been charged off to cost of sales in consistent with practice followed in earlier years. (d) Borrowing Costs Borrowing costs relating to projects already in commercial operation are charged as expenses for the year under review. In respect of projects that have not yet commenced commercial production, borrowing costs are debited to capital work in progress. (e) Inventories Inventories are carried at the lower of cost and net realisable value. Cost is determined on weighted average cost basis. The cost of inventories comprises of expenditure incurred in the normal course of business in bringing the inventories to their present location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred to make the sale. (f) Accounts Receivable Accounts receivable are stated at net realisable value. (g) Cash and Cash Equivalents This comprises cash in hand and at banks. (h) Other Current Assets Other current assets have a value on realization in the ordinary course of the company's business which is at least equal to the amount at which they are stated in the balance sheet. (i) Income Taxes Income Tax expenses include tax for the current year which has been provided on the accounting profit for the year at the current tax rate of 30%. Income Tax expenses also include short/excess provision of Tax of prior periods. (j) Cost of Post Employment Benefits The Company’s post employment benefits to eligible employees comprise of recognized contributory provident fund, unfunded gratuity and group insurance scheme. Assets of provident fund are held in a separate trustee administered fund as per the relevant rules and is funded by contributions from the employees and the company at pre- determined rates. Employees are entitled to gratuity benefit after completion of minimum five years of service in the company. The gratuity is calculated on the last basic pay and is payable at the rate of one month basic pay for every completed year of service. The company's contributions to the provident fund, gratuity and group insurance are charged off as revenue expenditure in the period to which the contributions relate. 46 47 14. Accounting for Dividend (Cash and Bonus Shares) of Previous year (2002) Shareholders in the 27th Annual General Meeting of the Company held on June 24, 2003 approved 5% cash dividend and 15% stock dividend for the year 2002. Accordingly, total dividend amount of Tk. 88,500,000 in respect of 2002 (cash dividend of Tk. 22,125,000 and bonus shares of Tk. 66,375,000) have been accounted for in 2003. 15. Corporate Accounting Policies (a) Revenue Recognition Sales are recorded at the time of delivery of products along with issue of invoices. In conformity with the requirements of provisions of IAS 18 "Revenue", VAT as included in sales price and collected on behalf of customers is not considered as "Revenue". Dividend income on investment in shares has been recognized on approval of said dividend in the annual general meeting of relevant company. (b) Property, Plant and Equipment All property, plant and equipment is initially recorded at cost and depreciated over their expected useful life. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use inclusive of inward freight, duties and non- refundable taxes. In respect of major projects involving construction, related pre-operational expenses form part of the value of asset capitalized. Expenses capitalized also include applicable borrowing cost. Expenditure incurred after the assets have been put into operation, such as repairs & maintenance, is normally charged off as revenue expenditure in the period in which it is incurred. In situation, where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefit expected to be obtained from the use of the fixed assets, the expenditure is capitalized as an additional cost of the assets. Software are generally charged off as revenue expenditure. Fixed Assets include assets acquired under lease from Shamil Bank of Bahrain E.C. On retirement or otherwise disposal of fixed assets, the cost and accumulated depreciation are eliminated and, any gain or loss on such disposal is reflected in the profit and loss account which is determined with reference to the net book value of the assets and the net sales proceeds. (c) Depreciation No depreciation is charged on land. In respect of all other fixed assets, depreciation is provided to amortize the cost of the assets after commissioning, over their expected useful economic lives. Depreciation is computed using the reducing balance method. Full year's depreciation is charged on additions and no depreciation is provided on retirement, irrespective of date of addition or retirement respectively. The annual depreciation rates applicable to the principal categories of assets are : Building and Other Construction Plant and Machinery Furniture & Fixtures Transport & Vehicle Office Equipment 10% 15% 10% 20% 10% to 50% The whole amount of depreciation has been charged off to cost of sales in consistent with practice followed in earlier years. (d) Borrowing Costs Borrowing costs relating to projects already in commercial operation are charged as expenses for the year under review. In respect of projects that have not yet commenced commercial production, borrowing costs are debited to capital work in progress. (e) Inventories Inventories are carried at the lower of cost and net realisable value. Cost is determined on weighted average cost basis. The cost of inventories comprises of expenditure incurred in the normal course of business in bringing the inventories to their present location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred to make the sale. (f) Accounts Receivable Accounts receivable are stated at net realisable value. (g) Cash and Cash Equivalents This comprises cash in hand and at banks. (h) Other Current Assets Other current assets have a value on realization in the ordinary course of the company's business which is at least equal to the amount at which they are stated in the balance sheet. (i) Income Taxes Income Tax expenses include tax for the current year which has been provided on the accounting profit for the year at the current tax rate of 30%. Income Tax expenses also include short/excess provision of Tax of prior periods. (j) Cost of Post Employment Benefits The Company’s post employment benefits to eligible employees comprise of recognized contributory provident fund, unfunded gratuity and group insurance scheme. Assets of provident fund are held in a separate trustee administered fund as per the relevant rules and is funded by contributions from the employees and the company at pre- determined rates. Employees are entitled to gratuity benefit after completion of minimum five years of service in the company. The gratuity is calculated on the last basic pay and is payable at the rate of one month basic pay for every completed year of service. The company's contributions to the provident fund, gratuity and group insurance are charged off as revenue expenditure in the period to which the contributions relate. 46 47 (k) Other Corporate Debt, Accounts Payable, Trade and Other Liabilities Weighted Average Number of Ordinary Shares Outstanding during the year These liabilities are carried at the anticipated settlement amount in respect of goods and services received, whether or not billed by the supplier. (l) Provisions Provisions are liabilities of uncertain timings or amount. Provisions are recognized when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. (m) Share Premium The Share Premium shall be utilized in accordance with provisions of the Companies Act 1994 and as directed by the Securities and Exchange Commission in this respect. The Section 57 of the Companies Act 1994 provides that the share premium account may be applied by the company : (a) (b) (c) (d) in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares ; in writing off the preliminary expenses of the company ; in writing off the expenses of or the commission paid or discount allowed on any issue of shares or debentures of the company ; and in providing for the premium payable on the redemption of any redeemable preference shares or of any debenture of the company. In this respect, a statutory notification was issued in 1992 by the Controller of Capital Issues (now the Securities and Exchange Commission), allowing the above stated utilization of share premium including one additional purpose in adjusting or amortizing of intangible assets, subject to prior approval. The said notification also provides that the fund of the premium account is to be utilized in order of priority. (n) Tax-Holiday Reserve This is being created out of tax-holiday profit to invest in the same undertaking or in any new industrial undertaking or in stocks and shares of listed companies or in government bonds or securities or for other purposes as required by the Income Tax Ordinance 1984. (o) Proposed Dividend and Dividend Distribution Tax Dividend proposed by the board of directors for the year under review and Dividend Distribution Tax thereon shall be accounted for after approval by the shareholders in the annual general meeting. (p) Earnings Per Share (EPS) This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares outstanding during the year. Basic Earnings This represents earnings for the year attributable to ordinary shareholders. As there was no preference dividend, minority interest or extra ordinary items, the net profit after tax for the year has been considered as fully attributable to the ordinary shareholders. Current Year (2003) The Bonus Shares issued during the year 2003 were treated as if they always had been in issue. Hence, in computing the Basic EPS of 2003, the total number of shares including the said bonus shares has been considered as the Weighted Average Number of Shares Outstanding during the year 2003. Earlier Year (2002) The number of shares outstanding before the bonus issue has been adjusted for the proportionate change in the number of shares outstanding as if the bonus issue had occurred at the beginning of the earliest period reported (2002), and accordingly, in calculating the Adjusted EPS of 2002, the total number of shares including the subsequent bonus issue in 2003 has been considered as the Weighted Average Number Of Shares Outstanding during the year 2002. The basis of computation of number of shares as stated above, is in line with the provisions of IAS 33 "Earnings Per Share". The logic behind this basis, as stated in the said IAS is, that the bonus shares are issued to the existing shareholders without any consideration, and therefore, the number of shares outstanding is increased without an increase in resources generating new earnings. Diluted Earnings Per Share No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review. (q) Foreign Currencies The financial records of the company are maintained and the financial statements are stated in Bangladeshi Taka. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date. Other monetary assets and liabilities, if any, denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange ruling at that date. Exchange differences are charged of as revenue expenditure. The rates of relevant foreign exchanges at year end are : 2003 1 US Dollar ($) = Tk. 1 EURO ((cid:160) 59.2000 ) = Tk. 74.6986 2002 59.1200 62.5398 48 49 (k) Other Corporate Debt, Accounts Payable, Trade and Other Liabilities Weighted Average Number of Ordinary Shares Outstanding during the year These liabilities are carried at the anticipated settlement amount in respect of goods and services received, whether or not billed by the supplier. (l) Provisions Provisions are liabilities of uncertain timings or amount. Provisions are recognized when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. (m) Share Premium The Share Premium shall be utilized in accordance with provisions of the Companies Act 1994 and as directed by the Securities and Exchange Commission in this respect. The Section 57 of the Companies Act 1994 provides that the share premium account may be applied by the company : (a) (b) (c) (d) in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares ; in writing off the preliminary expenses of the company ; in writing off the expenses of or the commission paid or discount allowed on any issue of shares or debentures of the company ; and in providing for the premium payable on the redemption of any redeemable preference shares or of any debenture of the company. In this respect, a statutory notification was issued in 1992 by the Controller of Capital Issues (now the Securities and Exchange Commission), allowing the above stated utilization of share premium including one additional purpose in adjusting or amortizing of intangible assets, subject to prior approval. The said notification also provides that the fund of the premium account is to be utilized in order of priority. (n) Tax-Holiday Reserve This is being created out of tax-holiday profit to invest in the same undertaking or in any new industrial undertaking or in stocks and shares of listed companies or in government bonds or securities or for other purposes as required by the Income Tax Ordinance 1984. (o) Proposed Dividend and Dividend Distribution Tax Dividend proposed by the board of directors for the year under review and Dividend Distribution Tax thereon shall be accounted for after approval by the shareholders in the annual general meeting. (p) Earnings Per Share (EPS) This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares outstanding during the year. Basic Earnings This represents earnings for the year attributable to ordinary shareholders. As there was no preference dividend, minority interest or extra ordinary items, the net profit after tax for the year has been considered as fully attributable to the ordinary shareholders. Current Year (2003) The Bonus Shares issued during the year 2003 were treated as if they always had been in issue. Hence, in computing the Basic EPS of 2003, the total number of shares including the said bonus shares has been considered as the Weighted Average Number of Shares Outstanding during the year 2003. Earlier Year (2002) The number of shares outstanding before the bonus issue has been adjusted for the proportionate change in the number of shares outstanding as if the bonus issue had occurred at the beginning of the earliest period reported (2002), and accordingly, in calculating the Adjusted EPS of 2002, the total number of shares including the subsequent bonus issue in 2003 has been considered as the Weighted Average Number Of Shares Outstanding during the year 2002. The basis of computation of number of shares as stated above, is in line with the provisions of IAS 33 "Earnings Per Share". The logic behind this basis, as stated in the said IAS is, that the bonus shares are issued to the existing shareholders without any consideration, and therefore, the number of shares outstanding is increased without an increase in resources generating new earnings. Diluted Earnings Per Share No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review. (q) Foreign Currencies The financial records of the company are maintained and the financial statements are stated in Bangladeshi Taka. Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date. Other monetary assets and liabilities, if any, denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange ruling at that date. Exchange differences are charged of as revenue expenditure. The rates of relevant foreign exchanges at year end are : 2003 1 US Dollar ($) = Tk. 1 EURO ((cid:160) 59.2000 ) = Tk. 74.6986 2002 59.1200 62.5398 48 49 16. Property, Plant and Equipment - Tk. 5,895,916,746 Particulars Cost Land Building and Other Constructions Plant and Machinery Furniture and Fixtures Transport and Vehicle Office Equipment Total At 31 December, 2002 Additions in 2003 Acquired under Lease Disposal in 2003 Transferred & Capitalized in 2003 421,581,092 4,251,725 659,418,509 - - 466,061,348 13,426,584 - (7,959,556) 26,134,587 804,953,065 6,624,292 91,181,332 (140,841,338) - 31,827,332 3,877,818 - (719,040) - 32,480,026 8,507,794 - (1,745,927) - 98,946,413 14,006,931 2,171,577 (258,167) - 1,855,849,276 50,695,144 752,771,418 (151,524,028) 26,134,587 19. Accounts Receivable - Tk. 499,677,576 This is unsecured, considered good and is falling due within one year. This includes receivable of Tk. 36,574,766 equivalent to US $ 648,495 (on 31-12-2002 Tk. 43,907,765 equivalent to US $ 775,512.77) against export sales. This also includes Tk. 463,061,601 (on 31-12-2002 Tk. 387,549,191) due from I & I Services Ltd., the sole distributor of the pharmaceutical products of the company and a "related party". The maximum amount due from that company during the year was Tk. 467,025,081 on 21-07-2003 (on 31-12-2002 Tk. 387,549,191). No amount was due by the directors, managing agent, managers and other officers of the company and any of them severally or At 31 December, 2003 1,085,251,326 497,662,963 761,917,351 34,986,110 39,241,893 114,866,754 2,533,926,397 jointly with any other person. Depreciation At 31 December, 2002 For 2003 Adjustment on disposal At 31 December, 2003 Net Book Value 31 December, 2003 Capital Work in Progress Tk. Tk. Carrying Value as on 31 December, 2003 Tk. - - - - 212,820,903 27,884,498 - 454,764,528 44,189,634 (82,231,469) 13,769,514 2,143,679 (220,191) 24,176,860 3,242,111 (1,145,523) 67,521,239 7,222,590 (231,574) 773,053,044 84,682,512 (83,828,757) 240,705,401 416,722,693 15,693,002 26,273,448 74,512,255 773,906,799 1,085,251,326 256,957,562 345,194,658 19,293,108 12,968,445 40,354,499 1,760,019,598 - - - - - - 4,135,897,148 1,085,251,326 256,957,562 345,194,658 19,293,108 12,968,445 40,354,499 5,895,916,746 Capital Work in Progress is arrived at as follows : 2003 2002 As on 01.01.2003 Addition in 2003 Acquired under Lease Capitalized in 2003: Building and other Constructions Plant and Machinery 3,657,124,843 350,537,589 154,369,303 4,162,031,735 (26,134,587) - (26,134,587) As on 31.12.2003 Tk. 4,135,897,148 17. Investment in Shares - Tk. 44,176,250 This consists of: 3,487,550,693 256,652,343 - 3,744,203,036 (28,579,068) (58,499,125) (87,078,193) 3,657,124,843 a) 2,895,750 Shares of Tk. 10 Each of Padma Textile Mills Ltd. b) 1 Share of Tk. 1,000,000 Each of Central Depository Bangladesh Ltd. (CDBL) 43,176,250 1,000,000 44,176,250 Tk. 40,543,750 - 40,543,750 The Padma Textile Mills Ltd. is a listed company with foreign collaboration. The shares of the Padma Textile Mills Ltd. are listed in the Dhaka and Chittagong Stock Exchanges. The market value of each share of Padma Textile Mills Ltd. as on 31st December, 2003 was Tk. 14.79 (on 31-12-02 Tk.17.52) in the Dhaka Stock Exchange Ltd. and Tk. 14.88 (on 31-12-02 Tk. 17.50) in the Chittagong Stock Exchange Ltd. The investment in 2,895,750 shares represents 6.25% of total 46,332,000 issued, subscribed and paid-up shares of Padma Textile Mills Ltd. 18. Inventories - Tk. 1,143,710,812 This consists of as follows : Finished Goods Work in Process Raw Material Packing Material Laboratory Chemical Literature & Promotional Material Physician Sample Raw and Packing Material in Transit Stock of Stationery Spares & Accessories 50 387,269,598 90,349,959 400,129,288 118,233,247 395,921 8,941,256 7,187,467 69,808,101 1,748,950 59,647,025 411,049,204 80,625,166 391,493,587 104,790,428 417,427 6,948,712 4,856,124 61,408,282 1,696,259 50,254,100 Tk. 1,143,710,812 1,113,539,289 20. Loans, Advances and Deposits - Tk. 439,813,290 This is unsecured, considered good and consists of as follows : Loans and advances : Clearing & Forwarding Office Rent Employees Income Tax House Rent Motor Cycle Raw & Packing Material Advance against Land Imprest Advance Foreign Travel Others Deposits : VAT Claim Receivable Security Deposit Lease Deposit Earnest Money Bank Guarantee Margin 2003 2002 26,217,862 1,683,415 9,565,580 15,348,675 350,864 27,579,364 198,790,383 25,000,000 685,423 5,246,711 16,576,603 327,044,880 62,672,725 9,946,739 8,853,584 28,989,460 1,174,488 1,131,414 112,768,410 Tk. 439,813,290 24,002,407 1,520,209 9,683,474 41,983,412 958,997 23,894,888 101,290,270 - 516,422 6,825,284 7,268,680 217,944,043 65,332,848 16,058,743 8,402,466 48,161,262 1,337,978 233,545 139,526,842 357,470,885 (a) The maximum amount due from the officers during the year was Tk. 9,694,650 on 26-09-2003 (on 31-12-2002 Tk. 9,683,474). (b) No amount was due by the directors, managing agent, managers and other officers of the company and any of them severally or jointly with any other person, except as stated above. (c) No amount was due by any related party. 51 16. Property, Plant and Equipment - Tk. 5,895,916,746 Particulars Cost Land Building and Other Constructions Plant and Machinery Furniture and Fixtures Transport and Vehicle Office Equipment Total At 31 December, 2002 Additions in 2003 Acquired under Lease Disposal in 2003 Transferred & Capitalized in 2003 421,581,092 4,251,725 659,418,509 - - 466,061,348 13,426,584 - (7,959,556) 26,134,587 804,953,065 6,624,292 91,181,332 (140,841,338) - 31,827,332 3,877,818 - (719,040) - 32,480,026 8,507,794 - (1,745,927) - 98,946,413 14,006,931 2,171,577 (258,167) - 1,855,849,276 50,695,144 752,771,418 (151,524,028) 26,134,587 19. Accounts Receivable - Tk. 499,677,576 This is unsecured, considered good and is falling due within one year. This includes receivable of Tk. 36,574,766 equivalent to US $ 648,495 (on 31-12-2002 Tk. 43,907,765 equivalent to US $ 775,512.77) against export sales. This also includes Tk. 463,061,601 (on 31-12-2002 Tk. 387,549,191) due from I & I Services Ltd., the sole distributor of the pharmaceutical products of the company and a "related party". The maximum amount due from that company during the year was Tk. 467,025,081 on 21-07-2003 (on 31-12-2002 Tk. 387,549,191). No amount was due by the directors, managing agent, managers and other officers of the company and any of them severally or At 31 December, 2003 1,085,251,326 497,662,963 761,917,351 34,986,110 39,241,893 114,866,754 2,533,926,397 jointly with any other person. Depreciation At 31 December, 2002 For 2003 Adjustment on disposal At 31 December, 2003 Net Book Value 31 December, 2003 Capital Work in Progress Tk. Tk. Carrying Value as on 31 December, 2003 Tk. - - - - 212,820,903 27,884,498 - 454,764,528 44,189,634 (82,231,469) 13,769,514 2,143,679 (220,191) 24,176,860 3,242,111 (1,145,523) 67,521,239 7,222,590 (231,574) 773,053,044 84,682,512 (83,828,757) 240,705,401 416,722,693 15,693,002 26,273,448 74,512,255 773,906,799 1,085,251,326 256,957,562 345,194,658 19,293,108 12,968,445 40,354,499 1,760,019,598 - - - - - - 4,135,897,148 1,085,251,326 256,957,562 345,194,658 19,293,108 12,968,445 40,354,499 5,895,916,746 Capital Work in Progress is arrived at as follows : 2003 2002 As on 01.01.2003 Addition in 2003 Acquired under Lease Capitalized in 2003: Building and other Constructions Plant and Machinery 3,657,124,843 350,537,589 154,369,303 4,162,031,735 (26,134,587) - (26,134,587) As on 31.12.2003 Tk. 4,135,897,148 17. Investment in Shares - Tk. 44,176,250 This consists of: 3,487,550,693 256,652,343 - 3,744,203,036 (28,579,068) (58,499,125) (87,078,193) 3,657,124,843 a) 2,895,750 Shares of Tk. 10 Each of Padma Textile Mills Ltd. b) 1 Share of Tk. 1,000,000 Each of Central Depository Bangladesh Ltd. (CDBL) 43,176,250 1,000,000 44,176,250 Tk. 40,543,750 - 40,543,750 The Padma Textile Mills Ltd. is a listed company with foreign collaboration. The shares of the Padma Textile Mills Ltd. are listed in the Dhaka and Chittagong Stock Exchanges. The market value of each share of Padma Textile Mills Ltd. as on 31st December, 2003 was Tk. 14.79 (on 31-12-02 Tk.17.52) in the Dhaka Stock Exchange Ltd. and Tk. 14.88 (on 31-12-02 Tk. 17.50) in the Chittagong Stock Exchange Ltd. The investment in 2,895,750 shares represents 6.25% of total 46,332,000 issued, subscribed and paid-up shares of Padma Textile Mills Ltd. 18. Inventories - Tk. 1,143,710,812 This consists of as follows : Finished Goods Work in Process Raw Material Packing Material Laboratory Chemical Literature & Promotional Material Physician Sample Raw and Packing Material in Transit Stock of Stationery Spares & Accessories 50 387,269,598 90,349,959 400,129,288 118,233,247 395,921 8,941,256 7,187,467 69,808,101 1,748,950 59,647,025 411,049,204 80,625,166 391,493,587 104,790,428 417,427 6,948,712 4,856,124 61,408,282 1,696,259 50,254,100 Tk. 1,143,710,812 1,113,539,289 20. Loans, Advances and Deposits - Tk. 439,813,290 This is unsecured, considered good and consists of as follows : Loans and advances : Clearing & Forwarding Office Rent Employees Income Tax House Rent Motor Cycle Raw & Packing Material Advance against Land Imprest Advance Foreign Travel Others Deposits : VAT Claim Receivable Security Deposit Lease Deposit Earnest Money Bank Guarantee Margin 2003 2002 26,217,862 1,683,415 9,565,580 15,348,675 350,864 27,579,364 198,790,383 25,000,000 685,423 5,246,711 16,576,603 327,044,880 62,672,725 9,946,739 8,853,584 28,989,460 1,174,488 1,131,414 112,768,410 Tk. 439,813,290 24,002,407 1,520,209 9,683,474 41,983,412 958,997 23,894,888 101,290,270 - 516,422 6,825,284 7,268,680 217,944,043 65,332,848 16,058,743 8,402,466 48,161,262 1,337,978 233,545 139,526,842 357,470,885 (a) The maximum amount due from the officers during the year was Tk. 9,694,650 on 26-09-2003 (on 31-12-2002 Tk. 9,683,474). (b) No amount was due by the directors, managing agent, managers and other officers of the company and any of them severally or jointly with any other person, except as stated above. (c) No amount was due by any related party. 51 21. Cash and Cash Equivalents - Tk. 4,911,867 This consists of as follows : (a) Cash in Hand (b) Imprest Cash (c) Cash at Banks : (i) In Current Accounts (ii) In S.T.D. Accounts (iii) In F.C. Accounts (Equivalent US$ 60,104) (on 31-12-2002 US$ 35,357) Tk. 2003 839,755 427,747 82,602 3,622 3,558,141 3,644,365 4,911,867 2002 558,703 434,546 2,263,035 6,243 2,090,292 4,359,570 5,352,819 22. Issued Share Capital - Tk. 508,875,000 This represents : Authorised : 100,000,000 Ordinary Shares of Tk. 10/- each Issued, Subscribed and Paid-up : 23,600,000 Ordinary Shares of Tk. 10/- each fully paid-up in cash 27,287,500 Bonus Shares of Tk. 10/- each 50,887,500 Shares (a) Composition of Shareholding : Sponsors Foreign Investors General Public and Institutions (b) Distribution Schedule : Tk. 1,000,000,000 1,000,000,000 236,000,000 272,875,000 508,875,000 Tk. 236,000,000 206,500,000 442,500,000 2003 No. of shares % 2002 No. of shares % 13,711,022 281,377 36,895,101 50,887,500 26.94 0.55 72.51 100.00 11,922,631 501,581 31,825,788 44,250,000 26.94 1.13 71.93 100.00 The distribution schedule showing the number of shareholders and their shareholdings in percentage has been disclosed below as a requirement of the “Listing Regulations” of Dhaka and Chittagong Stock Exchanges : Range of Holdings No. of Shareholders % of Shareholders No. of Shares % of Share Capital In number of shares 1 to 499 500 to 5,000 5,001 to 10,000 10,001 to 20,000 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 50,001 to 100,000 100,001 to 1,000,000 Over 1,000,000 2003 37,534 9,458 463 227 60 22 10 19 13 5 2002 40,392 8,945 369 155 40 21 7 17 9 5 2003 78.50% 19.78% 0.97% 0.47% 0.13% 0.05% 0.02% 0.04% 0.03% 0.01% 2002 80.85% 17.91% 0.74% 0.31% 0.08% 0.04% 0.01% 0.03% 0.02% 0.01% Total 47,811 49,960 100.00% 100.00% 2003 2002 5,645,361 12,458,156 3,180,467 3,061,820 1,430,522 752,333 453,949 1,308,493 2,676,215 19,920,184 50,887,500 5,770,971 11,538,540 2,597,736 2,192,424 984,365 713,704 314,475 1,329,508 1,907,897 16,900,380 44,250,000 2003 11.09% 24.48% 6.25% 6.02% 2.81% 1.48% 0.89% 2.57% 5.26% 39.15% 100.00% 2002 13.04% 26.08% 5.87% 4.96% 2.23% 1.61% 0.71% 3.00% 4.31% 38.19% 100.00% (c) Market Price : The shares are listed in the Dhaka and Chittagong Stock Exchanges, on 31-12-2003 each share was quoted at Tk. 39.72 (on 31-12-02 Tk. 41.83) in the Dhaka Stock Exchange Ltd. and Tk.39.72 (on 31-12-02 Tk. 41.89) in the Chittagong Stock Exchange Ltd. (d) Option on unissued Shares : There is no option regarding authorised capital not yet issued but can be used to increase the issued, subscribed and paid-up capital through the issuance of new shares against cash contribution and bonus. (e) During the year under review, issued share capital has been increased by Tk. 66,375,000 (6,637,500 shares of Tk.10/-each) due to issue of 15% bonus shares. 23. Share Premium - Tk. 1,489,750,000 This is as per last account and made-up as follows : (a) 590,000 shares issued in 1992 at the premium of Tk. 325/- per share (b) 1,180,000 shares issued in 1994 at the premium of Tk. 1,100/- per share 2003 2002 191,750,000 1,298,000,000 1,489,750,000 Tk. 191,750,000 1,298,000,000 1,489,750,000 24. Tax-Holiday Reserve - Tk. 1,090,052,509 This has been provided for as per provisions of the Income Tax Ordinance, 1984 which is arrived at as follows : Opening Balance Add: Provided during the year (Note - 44) 998,690,522 91,361,987 1,090,052,509 Tk. 873,166,091 125,524,431 998,690,522 25. Long Term Borrowing (Secured) - Tk. 1,996,908,089 This consists of : (a) Project Loan (b) Interest and PAD (c) Obligation under Lease (a) Project Loan 844,778,324 244,989,043 907,140,722 1,996,908,089 Tk. 757,115,841 - - 757,115,841 This loan was sanctioned under the consortium arrangement of Janata Bank, Sonali Bank, Agrani Bank, Rupail Bank Ltd. and United Commercial Bank Ltd. for the expansion project of the company. Janata Bank was the lead bank to the consortium. A repayment re-arrangement of the disbursed amount is under process. This loan is secured against: (i) First (registered mortgage) charge on paripassu basis with the participating banks on 1,112.82 decimals of land alongwith the building and other construction to be built thereon at Kathaldia and Aushpara of Gazipur; and (ii) First paripassu charge by way of hypothecation on all assets of the company both present and future. (b) Interest and PAD This represents PAD and unpaid interest of Janata Bank re-arranged for payments in quarterly installments over a period of 7 (seven) years. (c) Obligation under lease The company entered into an Exchange in Satisfaction and User Agreement (ESUA) with Shamil Bank of Bahrain E.C. on 14th September 1999 and further supplemental agreements on 4th February 2001 and 4th March 2002. These agreements, which are similar to lease agreements, are due to expire on December 31, 2008 and have superceded the Morabaha financing agreement entered into earlier. The governing law clause of the ESUAwas that subject to Sharia law, the laws of England and Wales would apply. Due to disputes relating to the amount claimed by Shamil Bank of Bahrain E.C., the company was sued by the Bank in the High Court in London, UK. The central issue of the dispute was that the company did not agree to the amount claimed by the Bank, as this was contrary to Sharia law. The High Court ruled against the company holding that Sharia law was not applicable and only English law would apply. The company then appealed against this decision to the Appeals Court who also upheld the High Court’s judgement. The company has now appealed to the House of Lords where the appeal is pending at this time. In order to enforce the English Judgement, the bank has moved to the Bangladesh Court where the company intends to vigorously contest the claimed amount as not being in conformity with Sharia law. Unlike the English courts, Bangladesh courts recognise principles of Sharia law and therefore the company believes that its contention will be upheld by Bangladesh courts. However, the company is also negotiating with the bank to come to an amicable settlement outside the court. 52 53 21. Cash and Cash Equivalents - Tk. 4,911,867 This consists of as follows : (a) Cash in Hand (b) Imprest Cash (c) Cash at Banks : (i) In Current Accounts (ii) In S.T.D. Accounts (iii) In F.C. Accounts (Equivalent US$ 60,104) (on 31-12-2002 US$ 35,357) Tk. 2003 839,755 427,747 82,602 3,622 3,558,141 3,644,365 4,911,867 2002 558,703 434,546 2,263,035 6,243 2,090,292 4,359,570 5,352,819 22. Issued Share Capital - Tk. 508,875,000 This represents : Authorised : 100,000,000 Ordinary Shares of Tk. 10/- each Issued, Subscribed and Paid-up : 23,600,000 Ordinary Shares of Tk. 10/- each fully paid-up in cash 27,287,500 Bonus Shares of Tk. 10/- each 50,887,500 Shares (a) Composition of Shareholding : Sponsors Foreign Investors General Public and Institutions (b) Distribution Schedule : Tk. 1,000,000,000 1,000,000,000 236,000,000 272,875,000 508,875,000 Tk. 236,000,000 206,500,000 442,500,000 2003 No. of shares % 2002 No. of shares % 13,711,022 281,377 36,895,101 50,887,500 26.94 0.55 72.51 100.00 11,922,631 501,581 31,825,788 44,250,000 26.94 1.13 71.93 100.00 The distribution schedule showing the number of shareholders and their shareholdings in percentage has been disclosed below as a requirement of the “Listing Regulations” of Dhaka and Chittagong Stock Exchanges : Range of Holdings No. of Shareholders % of Shareholders No. of Shares % of Share Capital In number of shares 1 to 499 500 to 5,000 5,001 to 10,000 10,001 to 20,000 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 50,001 to 100,000 100,001 to 1,000,000 Over 1,000,000 2003 37,534 9,458 463 227 60 22 10 19 13 5 2002 40,392 8,945 369 155 40 21 7 17 9 5 2003 78.50% 19.78% 0.97% 0.47% 0.13% 0.05% 0.02% 0.04% 0.03% 0.01% 2002 80.85% 17.91% 0.74% 0.31% 0.08% 0.04% 0.01% 0.03% 0.02% 0.01% Total 47,811 49,960 100.00% 100.00% 2003 2002 5,645,361 12,458,156 3,180,467 3,061,820 1,430,522 752,333 453,949 1,308,493 2,676,215 19,920,184 50,887,500 5,770,971 11,538,540 2,597,736 2,192,424 984,365 713,704 314,475 1,329,508 1,907,897 16,900,380 44,250,000 2003 11.09% 24.48% 6.25% 6.02% 2.81% 1.48% 0.89% 2.57% 5.26% 39.15% 100.00% 2002 13.04% 26.08% 5.87% 4.96% 2.23% 1.61% 0.71% 3.00% 4.31% 38.19% 100.00% (c) Market Price : The shares are listed in the Dhaka and Chittagong Stock Exchanges, on 31-12-2003 each share was quoted at Tk. 39.72 (on 31-12-02 Tk. 41.83) in the Dhaka Stock Exchange Ltd. and Tk.39.72 (on 31-12-02 Tk. 41.89) in the Chittagong Stock Exchange Ltd. (d) Option on unissued Shares : There is no option regarding authorised capital not yet issued but can be used to increase the issued, subscribed and paid-up capital through the issuance of new shares against cash contribution and bonus. (e) During the year under review, issued share capital has been increased by Tk. 66,375,000 (6,637,500 shares of Tk.10/-each) due to issue of 15% bonus shares. 23. Share Premium - Tk. 1,489,750,000 This is as per last account and made-up as follows : (a) 590,000 shares issued in 1992 at the premium of Tk. 325/- per share (b) 1,180,000 shares issued in 1994 at the premium of Tk. 1,100/- per share 2003 2002 191,750,000 1,298,000,000 1,489,750,000 Tk. 191,750,000 1,298,000,000 1,489,750,000 24. Tax-Holiday Reserve - Tk. 1,090,052,509 This has been provided for as per provisions of the Income Tax Ordinance, 1984 which is arrived at as follows : Opening Balance Add: Provided during the year (Note - 44) 998,690,522 91,361,987 1,090,052,509 Tk. 873,166,091 125,524,431 998,690,522 25. Long Term Borrowing (Secured) - Tk. 1,996,908,089 This consists of : (a) Project Loan (b) Interest and PAD (c) Obligation under Lease (a) Project Loan 844,778,324 244,989,043 907,140,722 1,996,908,089 Tk. 757,115,841 - - 757,115,841 This loan was sanctioned under the consortium arrangement of Janata Bank, Sonali Bank, Agrani Bank, Rupail Bank Ltd. and United Commercial Bank Ltd. for the expansion project of the company. Janata Bank was the lead bank to the consortium. A repayment re-arrangement of the disbursed amount is under process. This loan is secured against: (i) First (registered mortgage) charge on paripassu basis with the participating banks on 1,112.82 decimals of land alongwith the building and other construction to be built thereon at Kathaldia and Aushpara of Gazipur; and (ii) First paripassu charge by way of hypothecation on all assets of the company both present and future. (b) Interest and PAD This represents PAD and unpaid interest of Janata Bank re-arranged for payments in quarterly installments over a period of 7 (seven) years. (c) Obligation under lease The company entered into an Exchange in Satisfaction and User Agreement (ESUA) with Shamil Bank of Bahrain E.C. on 14th September 1999 and further supplemental agreements on 4th February 2001 and 4th March 2002. These agreements, which are similar to lease agreements, are due to expire on December 31, 2008 and have superceded the Morabaha financing agreement entered into earlier. The governing law clause of the ESUAwas that subject to Sharia law, the laws of England and Wales would apply. Due to disputes relating to the amount claimed by Shamil Bank of Bahrain E.C., the company was sued by the Bank in the High Court in London, UK. The central issue of the dispute was that the company did not agree to the amount claimed by the Bank, as this was contrary to Sharia law. The High Court ruled against the company holding that Sharia law was not applicable and only English law would apply. The company then appealed against this decision to the Appeals Court who also upheld the High Court’s judgement. The company has now appealed to the House of Lords where the appeal is pending at this time. In order to enforce the English Judgement, the bank has moved to the Bangladesh Court where the company intends to vigorously contest the claimed amount as not being in conformity with Sharia law. Unlike the English courts, Bangladesh courts recognise principles of Sharia law and therefore the company believes that its contention will be upheld by Bangladesh courts. However, the company is also negotiating with the bank to come to an amicable settlement outside the court. 52 53 26. Deferred Liability (Provision for Gratuity) - Tk. 59,454,204 32. Net Sales Revenue - Tk. 2,183,829,795 This is payable to the permanent employees at the time of separation from the company which is arrived at as follows : This represents net sales and consists of as follows : 2003 2002 Opening Balance Add : Provided during the year Less : Paid during the year 27. Customs Debentures - Tk. 1,758,387 This is as per last account and represents : Installment due Interest due 28. Short Term Borrowing From Banks - Tk. 979,186,501 This represents : (a) Janata Bank : Cash Credit-Pledge Cash Credit-Hypothecation LIM Interest & PAD (b) Citibank N.A. (c) Credit Agricole Indosuez (d) Standard Chartered 29. Creditors and Other Payables - Tk. 168,382,575 These are unsecured, and falling due within one year. This consists of : Suppliers Payable to RAJUK Loan from Workers' Profit Participation/Welfare Funds 30. Accrued Expenses - Tk. 135,797,123 This is falling due within one year. This consists of as follows: For Expenses-Unsecured Workers’ Profit Participation/Welfare Funds Provident Fund 31. Income Tax Payable - Tk. 41,898,392 This is arrived at as follows : Opening Balance Add : Tax provided in 2003 (Note - 43) Less : Tax paid during the year Less : Advance tax adjusted 2003 55,476,158 7,037,892 62,514,050 (3,059,846) 59,454,204 2002 47,508,787 10,391,496 57,900,283 (2,424,125) 55,476,158 265,854 1,492,533 1,758,387 265,854 1,492,533 1,758,387 166,750,011 641,703,580 - 39,313,860 70,524,122 - 60,894,928 979,186,501 150,990,428 573,312,179 20,225,824 234,384,101 77,354,361 398,924 115,309,781 1,171,975,598 68,749,260 16,613,249 83,020,066 168,382,575 66,668,887 14,833,258 74,426,441 155,928,586 68,387,437 13,180,926 54,228,760 135,797,123 72,081,994 19,148,863 38,452,039 129,682,896 47,906,598 38,975,206 86,881,804 (3,000,000) 83,881,804 (41,983,412) 41,898,392 37,393,516 20,552,415 57,945,931 (10,039,333) 47,906,598 - 47,906,598 Tk. Tk. Tk. Tk. Tk. Tk. Local Sales Export Sales - US$ 1,000,471 (in 2002 US$ 860,012) Sales Represents : Tablet & Capsules Bottle & Tubes Basic Chemicals Pcs Pcs Kg 33. Cost of Goods Sold - Tk. 1,355,748,848 This is made-up as follows : Work-in-Process (Opening) Raw Material Consumed Packing Material Consumed Laboratory Chemical Consumed Work-in-Process (Closing) TOTALCONSUMPTION Factory Overhead COST OF PRODUCTION Finished Goods (Opening) Finished Goods Available Finished Goods (Closing) Cost of Physician Sample 2,124,235,810 59,593,985 2,183,829,795 Tk. 2,458,504,550 50,283,518 2,508,788,068 1,182,055,979 23,561,759 46,724 1,457,850,760 25,568,572 67,518 Notes 34 35 36 37 80,625,166 851,733,404 231,207,585 4,601,714 1,168,167,869 71,803,128 1,195,594,016 250,678,370 4,650,034 1,522,725,548 (90,349,959) (80,625,166) 1,077,817,910 264,282,650 1,342,100,560 411,049,204 1,753,149,764 (387,269,598) 1,365,880,166 (10,131,318) 1,355,748,848 Tk. 1,442,100,382 230,508,370 1,672,608,752 368,956,089 2,041,564,841 (411,049,204) 1,630,515,637 (10,022,488) 1,620,493,149 Item wise quantity and value of Finished Goods Stock are as follows : Item Unit Quantity Value Stock as on 01-01-2003 Tablet & Capsules Bottle & Tubes Basic Chemicals Stock as on 31-12-2003 Tablet & Capsules Bottle & Tubes Basic Chemicals Pcs Pcs Kg Pcs Pcs Kg 370,291,749 5,407,219 9,028 343,286,138 5,601,680 10,403 264,618,403 92,295,515 54,135,286 411,049,204 248,787,165 81,557,668 56,924,765 387,269,598 Tk. Tk. 54 55 26. Deferred Liability (Provision for Gratuity) - Tk. 59,454,204 32. Net Sales Revenue - Tk. 2,183,829,795 This is payable to the permanent employees at the time of separation from the company which is arrived at as follows : This represents net sales and consists of as follows : 2003 2002 Opening Balance Add : Provided during the year Less : Paid during the year 27. Customs Debentures - Tk. 1,758,387 This is as per last account and represents : Installment due Interest due 28. Short Term Borrowing From Banks - Tk. 979,186,501 This represents : (a) Janata Bank : Cash Credit-Pledge Cash Credit-Hypothecation LIM Interest & PAD (b) Citibank N.A. (c) Credit Agricole Indosuez (d) Standard Chartered 29. Creditors and Other Payables - Tk. 168,382,575 These are unsecured, and falling due within one year. This consists of : Suppliers Payable to RAJUK Loan from Workers' Profit Participation/Welfare Funds 30. Accrued Expenses - Tk. 135,797,123 This is falling due within one year. This consists of as follows: For Expenses-Unsecured Workers’ Profit Participation/Welfare Funds Provident Fund 31. Income Tax Payable - Tk. 41,898,392 This is arrived at as follows : Opening Balance Add : Tax provided in 2003 (Note - 43) Less : Tax paid during the year Less : Advance tax adjusted 2003 55,476,158 7,037,892 62,514,050 (3,059,846) 59,454,204 2002 47,508,787 10,391,496 57,900,283 (2,424,125) 55,476,158 265,854 1,492,533 1,758,387 265,854 1,492,533 1,758,387 166,750,011 641,703,580 - 39,313,860 70,524,122 - 60,894,928 979,186,501 150,990,428 573,312,179 20,225,824 234,384,101 77,354,361 398,924 115,309,781 1,171,975,598 68,749,260 16,613,249 83,020,066 168,382,575 66,668,887 14,833,258 74,426,441 155,928,586 68,387,437 13,180,926 54,228,760 135,797,123 72,081,994 19,148,863 38,452,039 129,682,896 47,906,598 38,975,206 86,881,804 (3,000,000) 83,881,804 (41,983,412) 41,898,392 37,393,516 20,552,415 57,945,931 (10,039,333) 47,906,598 - 47,906,598 Tk. Tk. Tk. Tk. Tk. Tk. Local Sales Export Sales - US$ 1,000,471 (in 2002 US$ 860,012) Sales Represents : Tablet & Capsules Bottle & Tubes Basic Chemicals Pcs Pcs Kg 33. Cost of Goods Sold - Tk. 1,355,748,848 This is made-up as follows : Work-in-Process (Opening) Raw Material Consumed Packing Material Consumed Laboratory Chemical Consumed Work-in-Process (Closing) TOTALCONSUMPTION Factory Overhead COST OF PRODUCTION Finished Goods (Opening) Finished Goods Available Finished Goods (Closing) Cost of Physician Sample 2,124,235,810 59,593,985 2,183,829,795 Tk. 2,458,504,550 50,283,518 2,508,788,068 1,182,055,979 23,561,759 46,724 1,457,850,760 25,568,572 67,518 Notes 34 35 36 37 80,625,166 851,733,404 231,207,585 4,601,714 1,168,167,869 71,803,128 1,195,594,016 250,678,370 4,650,034 1,522,725,548 (90,349,959) (80,625,166) 1,077,817,910 264,282,650 1,342,100,560 411,049,204 1,753,149,764 (387,269,598) 1,365,880,166 (10,131,318) 1,355,748,848 Tk. 1,442,100,382 230,508,370 1,672,608,752 368,956,089 2,041,564,841 (411,049,204) 1,630,515,637 (10,022,488) 1,620,493,149 Item wise quantity and value of Finished Goods Stock are as follows : Item Unit Quantity Value Stock as on 01-01-2003 Tablet & Capsules Bottle & Tubes Basic Chemicals Stock as on 31-12-2003 Tablet & Capsules Bottle & Tubes Basic Chemicals Pcs Pcs Kg Pcs Pcs Kg 370,291,749 5,407,219 9,028 343,286,138 5,601,680 10,403 264,618,403 92,295,515 54,135,286 411,049,204 248,787,165 81,557,668 56,924,765 387,269,598 Tk. Tk. 54 55 34. Raw Material Consumed - Tk. 851,733,404 This is made-up as follows : Opening Stock Purchase Closing Stock Item wise quantity and value : Opening Stock (Consists of 390 items) Add : Purchase (Consists of 377 items) Less : Closing Stock (Consists of 452 items) Consumption (Consists of 402 items) Kg Ltr. Unit Kg Ltr. Unit Kg Ltr. Unit Kg Ltr. Unit SOLID 424,313 4,420 67,923,593 1,735,648 3,139 65,134,320 332,699 4,878 58,983,173 LIQUID 116,387 - - 588,264 - - 97,095 - - 1,827,262 2,681 74,074,740 607,556 - - Raw material consumed is 72% imported. 35. Packing Material Consumed - Tk. 231,207,585 This is made-up as follows : Opening Stock Purchase Closing Stock 2003 2002 391,493,587 860,369,105 (400,129,288) 851,733,404 TOTAL(Qnty) 964,368 4,420 67,923,593 2,570,174 3,139 65,134,320 776,666 4,878 58,983,173 2,757,876 2,681 74,074,740 Tk. BASIC 423,668 - - 246,262 - - 346,872 - - 323,058 - - 487,421,624 1,099,665,979 (391,493,587) 1,195,594,016 TOTAL(Value) 377,226,521 3,336,435 10,930,631 391,493,587 849,514,369 1,439,324 9,415,412 860,369,105 386,880,261 3,776,624 9,472,403 400,129,288 839,860,629 999,135 10,873,640 Tk. 851,733,404 104,790,428 244,650,404 (118,233,247) 231,207,585 Tk. 104,502,699 250,966,099 (104,790,428) 250,678,370 Packing material consumed is 39% imported. Particulars in respect of quantity of each packing material as well as value of each class of packing material are not given as the number of items as well as classes of items are numerous. 36. Laboratory Chemical Consumed - Tk. 4,601,714 This is made-up as follows : Opening Stock Purchase Closing Stock 417,427 4,580,208 (395,921) 4,601,714 Tk. 449,162 4,618,299 (417,427) 4,650,034 Particulars in respect of quantity of each laboratory chemical as well as value of each class of laboratory chemical are not given as the number of items as well as classes of items are numerous. 37. Factory Overhead - Tk. 264,282,650 This consists of as follows : Salary & Allowances (including welfare expenses and retrial benefit) Repairs & Maintenance Insurance Premium on Stock Municipal Tax & Land Revenue Advertisement & Subscription Travelling & Conveyance Entertainment Research and Development Printing & Stationery Telephone & Postage Toll Charge/ (Income) (Net) Electricity, Gas & Water Lease Rental Other Expenses Depreciation 2003 2002 84,829,589 18,999,015 5,717,387 619,129 167,861 578,924 136,175 10,804,691 3,086,358 1,195,006 (6,879,020) 10,772,951 40,705,903 8,866,169 84,682,512 264,282,650 Tk. 72,677,027 11,977,336 5,988,427 432,228 225,135 1,143,891 112,088 5,417,657 2,100,103 1,505,214 4,608,013 11,672,266 21,945,012 2,691,298 88,012,675 230,508,370 (a) Salary and allowances include company’s contribution to provident fund of Tk. 1,634,266 (in 2002 Tk. 1,676,199). (b) (c) In 2003, all the 464 factory employees received annual salary and allowances of Tk. 36,000 and above. The value of imported stores and spares consumed is Tk. 5,942,130 (in 2002 Tk. 6,054,125) which is 56% (57% in 2002) of total stores and spares consumed as included in repairs & maintenance. (d) Other expenses does not include any item exceeding 1% of total revenue. 38. Administrative Expenses -Tk. 84,329,332 This consists of as follows : Salary & Allowances (including welfare expenses and retrial benefit) Rent Expenses Repairs & Maintenance Donation & Subscription Travelling & Conveyance Entertainment Printing & Stationery Auditors’Remuneration Telephone & Postage Software & Networking Expenses Electricity, Gas & Water Legal & Consultancy Fee AGM & Company Secretarial Expenses Other Expenses Lease Rental 26,687,420 3,362,641 4,321,624 653,663 1,546,944 479,290 625,266 150,000 1,821,106 4,000,000 1,463,660 239,690 9,279,763 1,061,948 28,636,317 84,329,332 Tk. 24,315,143 1,995,921 3,300,665 620,632 674,027 217,685 584,807 150,000 1,965,711 4,400,000 1,135,862 441,431 7,143,832 1,253,303 31,727,740 79,926,759 (a) Salary and allowances include provident fund contribution of Tk. 718,799 (in 2002 Tk. 735,029). (b) In 2003, all the 78 employees of Head Office (excluding employees relating to selling and distribution) received annual salary and allowances of Tk. 36,000 and above. (c) Auditors’remuneration represents audit fee for auditing the accounts for the year 2003. In addition, an aggregate amount of Tk. 79,500 (in 2002 Tk. 71,752) was paid to auditors for physical inventory and other services as included in legal and consultancy fee stated above. 56 57 34. Raw Material Consumed - Tk. 851,733,404 This is made-up as follows : Opening Stock Purchase Closing Stock Item wise quantity and value : Opening Stock (Consists of 390 items) Add : Purchase (Consists of 377 items) Less : Closing Stock (Consists of 452 items) Consumption (Consists of 402 items) Kg Ltr. Unit Kg Ltr. Unit Kg Ltr. Unit Kg Ltr. Unit SOLID 424,313 4,420 67,923,593 1,735,648 3,139 65,134,320 332,699 4,878 58,983,173 LIQUID 116,387 - - 588,264 - - 97,095 - - 1,827,262 2,681 74,074,740 607,556 - - Raw material consumed is 72% imported. 35. Packing Material Consumed - Tk. 231,207,585 This is made-up as follows : Opening Stock Purchase Closing Stock 2003 2002 391,493,587 860,369,105 (400,129,288) 851,733,404 TOTAL(Qnty) 964,368 4,420 67,923,593 2,570,174 3,139 65,134,320 776,666 4,878 58,983,173 2,757,876 2,681 74,074,740 Tk. BASIC 423,668 - - 246,262 - - 346,872 - - 323,058 - - 487,421,624 1,099,665,979 (391,493,587) 1,195,594,016 TOTAL(Value) 377,226,521 3,336,435 10,930,631 391,493,587 849,514,369 1,439,324 9,415,412 860,369,105 386,880,261 3,776,624 9,472,403 400,129,288 839,860,629 999,135 10,873,640 Tk. 851,733,404 104,790,428 244,650,404 (118,233,247) 231,207,585 Tk. 104,502,699 250,966,099 (104,790,428) 250,678,370 Packing material consumed is 39% imported. Particulars in respect of quantity of each packing material as well as value of each class of packing material are not given as the number of items as well as classes of items are numerous. 36. Laboratory Chemical Consumed - Tk. 4,601,714 This is made-up as follows : Opening Stock Purchase Closing Stock 417,427 4,580,208 (395,921) 4,601,714 Tk. 449,162 4,618,299 (417,427) 4,650,034 Particulars in respect of quantity of each laboratory chemical as well as value of each class of laboratory chemical are not given as the number of items as well as classes of items are numerous. 37. Factory Overhead - Tk. 264,282,650 This consists of as follows : Salary & Allowances (including welfare expenses and retrial benefit) Repairs & Maintenance Insurance Premium on Stock Municipal Tax & Land Revenue Advertisement & Subscription Travelling & Conveyance Entertainment Research and Development Printing & Stationery Telephone & Postage Toll Charge/ (Income) (Net) Electricity, Gas & Water Lease Rental Other Expenses Depreciation 2003 2002 84,829,589 18,999,015 5,717,387 619,129 167,861 578,924 136,175 10,804,691 3,086,358 1,195,006 (6,879,020) 10,772,951 40,705,903 8,866,169 84,682,512 264,282,650 Tk. 72,677,027 11,977,336 5,988,427 432,228 225,135 1,143,891 112,088 5,417,657 2,100,103 1,505,214 4,608,013 11,672,266 21,945,012 2,691,298 88,012,675 230,508,370 (a) Salary and allowances include company’s contribution to provident fund of Tk. 1,634,266 (in 2002 Tk. 1,676,199). (b) (c) In 2003, all the 464 factory employees received annual salary and allowances of Tk. 36,000 and above. The value of imported stores and spares consumed is Tk. 5,942,130 (in 2002 Tk. 6,054,125) which is 56% (57% in 2002) of total stores and spares consumed as included in repairs & maintenance. (d) Other expenses does not include any item exceeding 1% of total revenue. 38. Administrative Expenses -Tk. 84,329,332 This consists of as follows : Salary & Allowances (including welfare expenses and retrial benefit) Rent Expenses Repairs & Maintenance Donation & Subscription Travelling & Conveyance Entertainment Printing & Stationery Auditors’Remuneration Telephone & Postage Software & Networking Expenses Electricity, Gas & Water Legal & Consultancy Fee AGM & Company Secretarial Expenses Other Expenses Lease Rental 26,687,420 3,362,641 4,321,624 653,663 1,546,944 479,290 625,266 150,000 1,821,106 4,000,000 1,463,660 239,690 9,279,763 1,061,948 28,636,317 84,329,332 Tk. 24,315,143 1,995,921 3,300,665 620,632 674,027 217,685 584,807 150,000 1,965,711 4,400,000 1,135,862 441,431 7,143,832 1,253,303 31,727,740 79,926,759 (a) Salary and allowances include provident fund contribution of Tk. 718,799 (in 2002 Tk. 735,029). (b) In 2003, all the 78 employees of Head Office (excluding employees relating to selling and distribution) received annual salary and allowances of Tk. 36,000 and above. (c) Auditors’remuneration represents audit fee for auditing the accounts for the year 2003. In addition, an aggregate amount of Tk. 79,500 (in 2002 Tk. 71,752) was paid to auditors for physical inventory and other services as included in legal and consultancy fee stated above. 56 57 45. Basic Earnings Per Share (EPS): The computation of EPS is given below : (a) Earnings attributable to the Ordinary Shareholders (Net Profit after Tax) (b) Weighted average number of Ordinary Shares outstanding during the year (c) Basic EPS of 2003/Adjusted EPS of 2002 Tk. 2003 224,643,327 50,887,500 4.41 2002 341,680,048 50,887,500 6.71 The definition of numerator (Earnings) and denominator (weighted average number of shares) is stated in Note-15. 46. Cash flow from Operation Under Indirect Method : Net profit after tax for the year Adjustment to reconcile net profit to net cash provided by operating activities : (a) Non-Cash Expenses: Depreciation Gratuity (b) (Gain)/ Loss on Sale of Fixed Assets Bonus Shares of Padma Textile Mills Ltd. Fund from Operations before Changes in Working Capital (c) Changes in Working Capital (Increase)/Decrease in Inventories (Increase) in Accounts Receivable (Increase) in Loans, Advances & Deposits Increase/(Decrease) in Creditors and Other Payables Increase in Accrued Expenses Increase/(Decrease) in Income Tax Payable 224,643,327 341,680,048 88,660,558 84,682,512 3,978,046 849,124 (2,632,500) 311,520,509 (152,323,527) (30,171,523) (52,369,609) (82,342,405) 12,453,989 6,114,227 (6,008,206) 95,980,045 88,012,675 7,967,370 (572,508) - 437,087,585 (296,176,229) 30,780,747 (113,423,572) (143,273,908) (94,764,634) 13,992,056 10,513,082 Net Cash Provided by Operating Activities Tk. 159,196,982 140,911,356 47. Related Party Transactions : Nature of Transactions (a) Accounts Receivable (b) Trade Creditors (c) Current Account Balances (d) Interest Income (e) Distribution Commission (f) Software & Networking Expenses (g) Investment in Shares (h) Cash and Stock Dividend Income 2003 463,061,601 585,000 - - 30,719,966 4,000,000 43,176,250 3,948,750 2002 387,549,191 500,000 58,555,415 3,068,245 34,520,436 4,400,000 40,543,750 1,316,250 39. Selling and Distribution Expenses - Tk. 313,669,240 This consists of as follows : Salary & Allowances (including welfare expenses and retrial benefit) Rent Expenses Repairs & Maintenance Travelling & Conveyance Entertainment Printing & Stationery Telephone & Postage Electricity, Gas & Water Market Research & New Products Training & Conference Sample Expenses Promotional Expenses Literature/News Letter Export Expenses Lease Rental Distribution Commission Other Expenses 2003 112,937,190 13,190,702 11,877,051 45,934,281 1,373,544 3,554,311 7,026,525 3,388,259 6,131,424 5,129,762 11,157,908 25,612,217 16,867,663 3,271,278 8,162,857 30,719,966 7,334,302 313,669,240 Tk. 2002 101,394,868 7,791,252 7,155,807 35,253,370 1,142,392 3,190,115 7,600,265 3,117,677 3,405,881 6,406,263 13,179,005 15,457,363 7,765,505 2,791,160 6,562,732 34,520,436 6,524,684 263,258,775 (a) Salary and allowances include provident fund contribution of Tk. 3,229,720 (in 2002 Tk. 3,219,611). (b) In 2003, all the 736 employees relates to selling and distribution received annual salary and allowances of Tk. 36,000 and above. (c) Distribution commission represents 1.5% of net sales other than export sales and Basic chemical products sale which has been paid to the I & I Services Ltd., the sole distributor of the company and a related party. 40. Other Income -Tk. 3,318,590 This is arrived at as follows : Interest income Cash Dividend received on investment in shares of Padma Textile Mills Ltd. Stock Dividend received on investment in shares of Padma Textile Mills Ltd. Exchange gain on retention quota (F.C.) accounts Profit/ (Loss) on sale of Fixed Assets 41. Finance Cost - Tk. 156,601,506 This is made-up as follows : Interest on Cash Credit and others Interest on loan from PF and WPP & Welfare Fund Note 49 Tk. Tk. - 1,316,250 2,632,500 218,964 (849,124) 3,318,590 5,251,359 1,316,250 - 126,318 572,508 7,266,435 143,159,432 13,442,074 156,601,506 161,521,864 9,472,631 170,994,495 42. Contribution to Workers’ Profit Participation/Welfare Funds - Tk. 13,180,926 This represents 5% of net profit before tax after charging the contribution as per provisions of the Companies Profit (Workers’ Participation) Act, 1968 and is payable to workers as defined in the said Act. 43. Income Tax Expense - Tk. 38,975,206 This represents : (a) Estimated Tax liability of the year 2003 : (i) 30% tax on the net profit of taxable units (ii) 15% tax on dividend income (b) Short provision of income tax 44. Tax-Holiday Reserve - Tk. 91,361,987 This represents 40% of net profit of the Tax-Holiday units. 18,959,309 197,438 19,156,747 19,818,459 38,975,206 Tk. 20,354,977 197,438 20,552,415 - 20,552,415 58 59 48. Financial Instruments and Related Disclosures (a) Primary (On Balance Sheet) Fiancial Instruments : 49. Particulars of Disposal of Property, Plant and Equipment : The following assets were disposed off during the Year ended 31-12-2003 : Set out below is a year-end balance of carrying amounts (book values) of all financial assets and liabilities (financial instruments) : Financial Assets Investment in Shares Accounts Receivable Cash & Cash Equivalents Financial Liabilities Customs Debentures Short Term Borrowings from Banks Creditors and Other Payables Accrued Expenses Deferred Liability - Provision for Gratuity Long Term Loan Tk. Interest Bearing Maturity within one year Maturity after one year Non Interest Bearing Total - - - - - - - - (1,758,387) (979,186,501) - - - - (980,944,888) - - - - - (1,996,908,089) (1,996,908,089) 44,176,250 499,677,576 4,911,867 548,765,693 - - (168,382,575) (135,797,123) (59,454,204) - (363,633,902) 44,176,250 499,677,576 4,911,867 548,765,693 (1,758,387) (979,186,501) (168,382,575) (135,797,123) (59,454,204) (1,996,908,089) (3,341,486,879) Net Financial Assets/(Liabilities) Tk. (980,944,888) (1,996,908,089) 185,131,791 (2,792,721,186) Carrying Amounts (Book value) The basis of carrying amounts have been stated in accounting policies (Note 15) Fair Value Management believe that the fair value of all financial assets and liabilities approximate their carrying value. Market Value The market value of investment in shares has been stated in Note 17. The market value of other financial instruments are not available as these are not traded on organized markets in standardized form. (i) Interest Rate Risk Exposure The company’s short term borrowings are subject to market rate fluctuations which are reviewed with lenders on an ongoing basis. (ii) Concentration of Credit Risk The company’s management believe that there was no significant concentration of credit risk in Accounts Receivable. The company monitors its exposure to credit risk on an ongoing basis. Accounts Receivable are evaluated for recoverability. (iii) Foreign Currency Risk The company is subject to foreign currency fluctuations as the local currency (Taka) varies with US Dollar and other foreign currencies. (b) Derivative (Off Balance Sheet) Financial Instruments : The Company is not a party to any derivative contract at the balance sheet date, such as forward exchange contract, currency swap agreement or interest rate option contract to hedge currency exposure related to import of raw material and others or principal and interest obligations of foreign currency loans. PARTICULARS OF ASSETS COST DEP. UPTO W.D.V. AS ON SALES PROFIT/ NAME OF PARTIES MODE OF DISPOSAL Building Machinery Machinery Machinery Machinery Motor Cycle Hero-100CC Micro Bus Toyota Car Toyota Car Motor Cycle Motor Cycle Toyota Toyota Corona Ex Saloon Toyota Hundai Domani Toyota Office Equipment Air Condition Generator Furniture Furniture Furniture Furniture Furniture Furniture Furniture Furniture Furniture 7,959,556 133,691,539 3,842,555 931,927 963,798 48,435 200,000 3,850 575,136 16,208 63,744 13,057 42,020 13,057 762,000 8,420 175,000 83,167 1,411,520 236,879 260,700 74,000 65,660 20,500 13,800 8,500 9,000 30,000 31-12-02 - 77,651,095 2,242,150 771,776 891,750 32,557 - 1,386 497,943 14,033 - 6,372 20,506 6,372 562,246 4,109 156,290 75,284 674,698 141,725 - 20,054 19,759 12,558 8,017 4,434 5,513 8,130 31-12-02 7,959,556 56,040,444 1,600,405 160,151 72,048 15,878 200,000 2,464 77,193 2,175 63,744 6,685 21,514 6,685 199,754 4,311 18,710 7,883 736,822 95,154 260,700 53,946 45,901 7,942 5,783 4,066 3,487 21,870 PRICE 7,959,556 56,040,444 258,462 120,000 72,101 10,000 255,000 201,500 171,500 20,000 40,000 252,000 225,100 250,550 168,000 251,100 3,021 1,273 118,997 34,407 260,700 53,946 40,000 7,148 5,000 3,659 3,000 19,683 (LOSS) - - (1,341,943) (40,151) 53 (5,878) 55,000 199,036 94,307 17,825 (23,744) 245,315 203,586 243,865 (31,754) 246,789 (15,689) (6,610) (617,825) (60,747) - - (5,901) (794) (783) (407) (487) (2,187) GSPFinance Co.(BD) Ltd. GSPFinance Co.(BD) Ltd. M/S Rony Traders Masum Rahman Ershad Enterprise Mr. Nuruzzaman Mr. Anwar Hossain Titu Mr. Zakir Hossain Mr. Sirajul Islam Mr. Mirash Uddin Mr. Asaduzzaman Khurshid Alam Rajdhani Motors Khurshid Alam Adeeb Reza Khurshid Alam M/S Rony Traders M/S Rony Traders M/S Rony Traders Dalia Enterprise Mr. Nadeem Firdousi Mr. Sayedur Rahman Syed Rumman Ali Mr. Habibur Rahman Mr. Fazlul Haque Mr. Shahabuddin Mr. Kamal Uddin Ahmed Mr. M.H. Siddiqui Sale & Lease Back Sale & Lease Back Tender Tender Tender Tender Tender Tender Tender Tender Ins. Claim Settlement Tender Tender Tender Tender Tender Tender Tender Tender Tender Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Tk. 151,524,028 83,828,757 67,695,271 66,846,147 (849,124) 50. Payment/Perquisites to Directors and Officers : (a) The aggregate amounts paid to/provided for the officers of the company as defined in the Securities and Exchange Rules 1987 are disclosed below : Managerial Remuneration Gratuity Company's Contribution to Provident Fund Bonus Perquisites : Housing Transport Medical Telephone Electricity, Gas & Water 2003 17,162,840 1,124,593 1,118,954 2,145,369 5,412,369 4,123,659 1,426,539 1,645,879 1,178,976 35,339,178 Tk. 2002 16,582,454 1,077,860 1,091,662 1,950,720 5,193,461 4,093,864 1,086,447 1,907,864 1,025,197 34,009,529 (b) No compensation was allowed by the company to the Directors of the company. (c) No amount of money was expended by the company for compensating any member of the board for special services rendered. (d) No board meeting attendance fee was paid to the directors of the company. 60 61 51. Production Capacity, Actual Production in 2003 and Reason of Excess/(Shortfall) : 59. Commission, Brokerage against Sales : Production Capacity 2003 2002 Actual Production 2003 2002 Excess / (Shortfall) 2003 2002 Unit Reason of Excess or Shortfall (a) Distribution commission of Tk. 30,719,966 (in 2002 Tk. 34,520,436) as stated in the Note- 39 were incurred and paid during the year under review. (b) No other commission was incurred or paid to the sales agent/distributor nor any brokerage or discount other than conventional trade discount was incurred or paid against sales except as stated in (a) above. 60. Post Closing Events : Subsequent to the balance sheet date, the directors recommended 10% cash dividend and 10% stock dividend (Bonus Share). The dividend proposal is subject to shareholders’approval at the forthcoming annual general meeting. Except the fact stated above, no circumstances have arisen since the balane sheet date which would require adjustment to, or disclosure in, the financial statements or notes thereto. C. H. Rahman Director Dhaka 27 April, 2004 Iqbal Ahmed Director Md. Asad Ullah Company Secretary Solid Section Liquid Section Basic Chemical Tablet & Capsule (in million pcs) Bottle & Tube (in million pcs) Metric ton 1,275 1,275 1,164 1,523 (111) 248 As per market demand and available capacity 22 22 180 180 24 48 29 67 2 7 As per market demand and available capacity (132) (113) As per market demand and available capacity 52. Capital Expenditure Commitment (a) There was no capital expenditure contracted but not incurred or provided for at 31st December 2003 & 2002. (b) There was no material capital expenditure authorized by the board but not contracted for at 31st December 2003 & 2002. 53. Operating Lease Commitment At 31st December, 2003 the company had annual commitment under operating leases as set out below : Leases expire within 1 year Leases expire within 2-5 years (inclusive) Leases expire after five years 17,380,436 52,387,212 - Tk. 69,767,648 54. Claim not Acknowledged as Debt There was no claim against the company not acknowledged as debt as on 31-12-03. 55. Un-availed Credit Facilities The company has an un-availed project loan facilities of Tk. 264.14 million sanctioned under consortium arrangement for procurement of plant & machinery for the USFDAproject. 56. Payments made in Foreign Currency : Import of Machinery Import of Raw & Packing Material and Spares Technical Know How Fees Foreign Currency (Equivalent US$) 202,384 8,650,798 64,228 Taka 11,845,519 506,331,230 3,409,468 No other expenses including royalty, technical expert and professional advisory fee, interest, etc. was incurred or paid in foreign currencies except as stated above. 57. Dividend Paid to the Non-Resident Shareholders in 2003 : (i) Dividend for 2002 was declared on 24-06-2003 and therefore, dividend for 2002 was paid in 2003. (ii) Net dividend of Tk. 6,816 relating to the year 2002 was paid to 3 non-resident shareholders against 16,037 shares held by them after deduction of Income Tax at source of Tk.1,203. (iii) No dividend was remitted in foreign currency but paid in local currency to their local custodian banks. 58. Foreign Exchange Earned : (a) Export sales of US $ 1,000,471 (in 2002 US $ 860,012). (b) No other income including royalty, technical assistance and professional advisory fee, interest and dividend was earned or received in foreign currency. 62 63 51. Production Capacity, Actual Production in 2003 and Reason of Excess/(Shortfall) : 59. Commission, Brokerage against Sales : Production Capacity 2003 2002 Actual Production 2003 2002 Excess / (Shortfall) 2003 2002 Unit Reason of Excess or Shortfall (a) Distribution commission of Tk. 30,719,966 (in 2002 Tk. 34,520,436) as stated in the Note- 39 were incurred and paid during the year under review. (b) No other commission was incurred or paid to the sales agent/distributor nor any brokerage or discount other than conventional trade discount was incurred or paid against sales except as stated in (a) above. 60. Post Closing Events : Subsequent to the balance sheet date, the directors recommended 10% cash dividend and 10% stock dividend (Bonus Share). The dividend proposal is subject to shareholders’approval at the forthcoming annual general meeting. Except the fact stated above, no circumstances have arisen since the balane sheet date which would require adjustment to, or disclosure in, the financial statements or notes thereto. C. H. Rahman Director Dhaka 27 April, 2004 Iqbal Ahmed Director Md. Asad Ullah Company Secretary Solid Section Liquid Section Basic Chemical Tablet & Capsule (in million pcs) Bottle & Tube (in million pcs) Metric ton 1,275 1,275 1,164 1,523 (111) 248 As per market demand and available capacity 22 22 180 180 24 48 29 67 2 7 As per market demand and available capacity (132) (113) As per market demand and available capacity 52. Capital Expenditure Commitment (a) There was no capital expenditure contracted but not incurred or provided for at 31st December 2003 & 2002. (b) There was no material capital expenditure authorized by the board but not contracted for at 31st December 2003 & 2002. 53. Operating Lease Commitment At 31st December, 2003 the company had annual commitment under operating leases as set out below : Leases expire within 1 year Leases expire within 2-5 years (inclusive) Leases expire after five years 17,380,436 52,387,212 - Tk. 69,767,648 54. Claim not Acknowledged as Debt There was no claim against the company not acknowledged as debt as on 31-12-03. 55. Un-availed Credit Facilities The company has an un-availed project loan facilities of Tk. 264.14 million sanctioned under consortium arrangement for procurement of plant & machinery for the USFDAproject. 56. Payments made in Foreign Currency : Import of Machinery Import of Raw & Packing Material and Spares Technical Know How Fees Foreign Currency (Equivalent US$) 202,384 8,650,798 64,228 Taka 11,845,519 506,331,230 3,409,468 No other expenses including royalty, technical expert and professional advisory fee, interest, etc. was incurred or paid in foreign currencies except as stated above. 57. Dividend Paid to the Non-Resident Shareholders in 2003 : (i) Dividend for 2002 was declared on 24-06-2003 and therefore, dividend for 2002 was paid in 2003. (ii) Net dividend of Tk. 6,816 relating to the year 2002 was paid to 3 non-resident shareholders against 16,037 shares held by them after deduction of Income Tax at source of Tk.1,203. (iii) No dividend was remitted in foreign currency but paid in local currency to their local custodian banks. 58. Foreign Exchange Earned : (a) Export sales of US $ 1,000,471 (in 2002 US $ 860,012). (b) No other income including royalty, technical assistance and professional advisory fee, interest and dividend was earned or received in foreign currency. 62 63 Notes BEXIMCO PHARMA Corporate Headquarter 17 Dhanmondi R/A, Road No. 2 Dhaka 1205, Bangladesh Phone : 880-2-8611891 (5 lines) Fax : 880-2-8613470 Email : beximchq@bol-online.com Website : www.beximco.net Operational Headquarter 19 Dhanmondi R/A, Road No. 7 Dhaka 1205, Bangladesh Phone : 8619151 (5 lines), 8619091 (5 lines) Fax : 880-2-8613888 Email : info@bpl.net Website : www.beximco-pharma.com Factory 126 Kathaldia Tongi, Gazipur Legal Advisor M/S HUQ & CO. 47/1 Purana Paltan, Dhaka Auditors M/S M. J. ABEDIN & CO. Chartered Accountants National Plaza (6th Floor) 1/G Free School Street Sonargaon Road, Dhaka-1205 Bankers Janata Bank Local office 1 Dilkusha C/A, Dhaka-1000 Citibank N.A. Chamber Building 122-124 Motijheel C/A, Dhaka-1000 Standard Chartered Bank Hadi Mansion 2 Dilkusha C/A, Dhaka-1000 64 63