Annual Report
2015-16
Annual Report 2015-16 | 1
Exporting Health to U.S.A.Made in Bangladesh ANNUAL REPORT
2015-16
BEXIMCO PHARMACEUTICALS LIMITED
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Mission
We are committed to enhancing human health and wellbeing by providing
contemporary and affordable medicines, manufactured in full compliance with global
quality standards. We continually strive to improve our core capabilities to address
the unmet medical needs of the patients and to deliver outstanding results for our
shareholders.
Vision
We will be one of the most trusted, admired and successful pharmaceutical companies
in the region with a focus on strengthening research and development capabilities,
creating partnerships and building presence across the globe.
Core Values
Our core values define who we are; they guide us to take decisions and help realize
our individual and corporate aspirations.
Commitment to quality
We adopt industry best practices in all our operations to ensure highest quality
standards of our products.
Customer satisfaction
We are committed to satisfying the needs of our customers, both internal and external.
People focus
We give high priority on building capabilities of our employees and empower them to
realize their full potential.
Accountability
We encourage transparency in everything we do and strictly adhere to the highest
ethical standards. We are accountable for our own actions and responsible for
sustaining corporate reputation.
Corporate social responsibility
We actively take part in initiatives that benefit our society and contribute to the welfare
of our people. We take great care in managing our operations with high concern for
safety and environment.
Contents
About the Company
The Board of Directors
Management Committee
Executive Committee
Key Events in History
Managing Director’s Statement
How We Performed
What We Offer
Our Manufacturing Capabilities
Our Global Accreditations
Research and Development
Awards and Accolades
Our People
Beyond Borders
What We Do for the Society
Corporate Events
Post Balance Sheet Update
Notice of Annual General Meeting
Chairman’s Statement
Directors’ Report to the Shareholders
Corporate Governance Compliance Report
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Certificate on Compliance of Corporate Governance Guidelines 59
Report on the Activities of the Audit Committee
Shareholders’ Meeting
Value Added Statement
Graphical View of Selected Growth Indicators
Independent Auditors’ Report
Statement of Financial Position
Statement of Profit or Loss and Other Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Proxy Form and Attendance Slip
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First Bangladeshi
pharma company
to export medicine
to U.S.A
About the Company
Beximco Pharma was incorporated in 1976. The company started its operation in 1980, importing products from Bayer,
Germany and Upjohn, USA and selling them in the local market, which were later manufactured and distributed under
licensing arrangement. From that humble beginning, Beximco Pharma has grown from strength to strength, and today it
has become a leading manufacturer and exporter of medicines in Bangladesh. Beximco’s manufacturing facilities have
been accredited by the leading global regulatory authorities, and medicines manufactured by the company are now being
exported to more than 50 countries around the world.
In its long journey of more than three decades, the Company has remained committed to ensuring health and wellbeing of
the people by providing high quality, affordable medicines.
www.beximcopharma.com
Certified:
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About the Company | Annual Report 2015-16 | 5
Annual Report 2015-16 | 5
The Board of Directors
Management
Committee
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Ali Nawaz
Chief Financial Officer
Rabbur Reza
Chief Operating Officer
Afsar Uddin Ahmed
Director, Commercial
Lutfur Rahman
Director, Manufacturing
Salman F Rahman
Vice Chairman
A S F Rahman
Chairman
Zakaria Seraj Chowdhury
Director, International Marketing
Shamim Momtaz
Director, Manufacturing
Mohd. Tahir Siddique
Director, Quality
A R M Zahidur Rahman
Executive Director, Production
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury
Director
Abu Bakar Siddiqur Rahman
Director
Iqbal Ahmed
Director
Dr. Abdur Rahman Khan
Independent Director
Shah Monjurul Hoque
Independent Director
Company Secretary
Mohammad Asad Ullah, FCS
Executive Director
Jamal Ahmed Choudhury
Executive Director, Accounts & Finance
Rizvi Ul Kabir
Executive Director, Sales
Prabir Ghose
Executive Director, Quality Assurance
Executive Committee
Osman Kaiser Chowdhury
Member of the Board of Directors
Nazmul Hassan MP
Rabbur Reza
Ali Nawaz
Afsar Uddin Ahmed
Managing Director
Chief Operating Officer
Chief Financial Officer
Director, Commercial
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Management Committee | Annual Report 2015-16 | 7
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Key Events in History
2016
2015
2014
- Became the first Bangladeshi company to commence medicine export to USA
- First Bangladeshi company to receive product approval from Health Canada
- Entered the Gulf pharma market (Kuwait) as the first Bangladeshi company
- Won National Export Trophy (Gold) for the record 5th time
- First Bangladeshi company to receive GMP approval from the US FDA
- Launched generic version of revolutionary hepatitis C drugs Sovaldi® and Harvoni®
- Received GMP accreditation from Taiwan Food & Drug Administration (TFDA) and
Health Canada as the first Bangladeshi company
- First Bangladeshi company to export medicine to Australia and Romania
- First Bangladeshi company to export ophthalmic products to Europe
2013
2012
2011 - Received GMP accreditation from AGES, Austria (for European Union)
- First Bangladeshi company to launch Salbutamol HFA inhaler (Azmasol®) in Singapore
2010
2009
2008
2006
2005
2003
1993
1992
1985
1983
1980
1976
- The only pharmaceutical company in Bangladesh to enter the US market through acquisition
of an Abbreviated New Drug Application (ANDA)
- First Bangladeshi company to receive GMP approval from ANVISA, Brazil
- First Bangladeshi company to receive GMP accreditation from Therapeutic Goods Administration (TGA),
Australia, and Gulf Central Committee for Drug Registration, for GCC states
- Technology transfer arrangement to manufacture Roche’s ARV drug Saquinavir
- Launched CFC free HFA inhalers for the first time in Bangladesh
- Only company in Bangladesh to get listed on the Alternative Investment Market (AIM) of
London Stock Exchange (LSE) through issuance of GDRs
- First company to introduce anti-retroviral (ARV) drugs in Bangladesh
- Russia became the first export destination for formulation products
- Export operations started with APIs
- Listed on Dhaka Stock Exchange
- Launched its own formulation brands
- Started manufacturing products of Bayer AG, Germany and Upjohn Inc., USA, under license agreements
- Company incorporated
Words of appreciation from the US Ambassador to Bangladesh
Her Excellency Marcia Stephens Bloom Bernicat
Thank you so much for letting us visit the future of Bangladesh! Congratulations to Beximco for
launching Carvedilol into the U.S. market today. We also laud the vision, the standards and the innovations
you are bringing to the pharmaceutical industry, to the U.S. and to the world. The United States of
America is proud to be the partner of Bangladesh in so many vital fields. The Best of Luck to Beximco.
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Key Events in History | Annual Report 2015-16 | 9
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Managing Director’s Statement
Dear Shareholders,
2015 was a remarkable year for Beximco Pharma. Further
to reporting excellent growth in our domestic and export
markets, the company achieved a major milestone by
becoming the first Bangladeshi pharmaceutical company
to be approved by the US Food and Drug Administration
(US FDA). In the same year, we received US FDA approval
for carvedilol, a prescription drug to treat hypertension,
and commenced export to the US market in August 2016.
This was a historic moment for the company, as well for
the country’s pharmaceutical industry, as it marked the
first shipment of Bangladeshi medicine to the world’s
largest pharmaceutical market. In addition, we received
the prestigious National Export Trophy (Gold) for the record
fifth time for making an outstanding contribution to the
country’s export.
I am pleased to inform you that in the domestic retail
formulation market we have achieved the highest growth
among the top five companies (IMS 2015). The company
continued to perform well in the first half of 2016.
We have remained focused on our strategic and aspirational
targets, enabling us to maintain our strong sales growth
and achieve these milestone events, and we continue to
concentrate on bringing high quality, differentiated products
to emerging and developed markets to create value for all
our customers and shareholders.
Despite uncertainties in the global economy, in 2015
Bangladesh achieved an impressive 6.5 percent growth
in GDP and the Asian Development Bank has estimated
Bangladesh’s economic growth at record 7.1 percent for
the fiscal 2015-16. In addition to exceptional achievements
in Millennium Development Goals (MDGs), the country has
maintained its economic progress through record foreign
exchange reserve, RMG export, remittance inflow, positive
country rating and rapid industrialisation. We firmly believe
these positive developments will continue to boost business
confidence and attract substantial foreign investments
in various product and service sectors, including the
pharmaceuticals sector.
the sector, currently meeting 97% of the country’s demand
for medicines. Historically, the industry has maintained
healthy double digit growth, which is expected to continue
in the coming years and the market is projected to reach
Tk 230 billion or approximately $3 billion by the year 2020.
The Bangladesh pharmaceutical industry is now better
equipped to produce value added and technologically
advanced formulations, with leading companies having
shown their skills in the areas of biosimilars, insulins,
vaccines, oncology etc. Importantly, the country’s much-
awaited Active Pharmaceutical Ingredient (API) technology
park in Munshiganj is almost complete and is expected
to be operational by 2017. This is expected to benefit the
industry through backward integration into API and lowering
its heavy dependency on import.
In the highly competitive pharmaceutical market, we have
maintained our strong position in key therapeutic segments
such as cardiovascular, respiratory and gastrointestinal,
which accounted for almost 50% of the company’s growth
in the year. Our cardiovascular, respiratory, pain and
diabetes portfolios have performed very well, growing by
30%, 20%, 21% and 35%, respectively.
In the 18-month period to June 30, 2016, we launched
32 new products in the domestic market, with several
first- time launches in the market. We have successfully
introduced generic versions of the revolutionary hepatitis C
drugs, Sovaldi and Harvoni, under the brand name Sofovir C
and Lesovir C, respectively. Lesovir C was the first generic
copy to be launched in the world. These two new direct
acting anti-virals (DAAs), both available as oral tablets,
have brought a paradigm shift in hepatitis C therapy with
more than 95% cure rate and mostly eliminating the need
for interferon. Beximco Pharma has made these highly
expensive drugs available at the lowest possible price
which is more than 99% cheaper compared to the originator
brands. The company has received much appreciation in
global media for introducing the generic versions providing
access to this latest hepatitis C therapy.
According to IMS, the Bangladesh pharmaceutical market
was valued at more than Tk 130 billion or around $1.6
billion in 2015. Local manufacturers continue to dominate
During the same period, a total of 129 products (92 generics)
were registered in 38 countries and the company entered
10 new markets, including Indonesia, Australia, Taiwan
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Managing Director’s Statement | Annual Report 2015-16 | 11
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Nazmul Hassan MP
Managing Director
As a generic drug company with global aspiration, our
major focus remains on research and development (R&D)
for bringing our high quality and differentiated products to
market. Our R&D team has been continually working on
diverse delivery systems, as well as regulatory filings in
different markets.
We have a clear growth strategy, whilst being mindful of the
new challenges. We will continue to build on our capabilities
and I firmly believe our commitment to quality and focus
on people, product and process will propel us forward on
our journey. Our experienced management team remains
focused on our key strategic priorities to drive sustainable
long-term growth and shareholder value.
I would like to extend my sincere gratitude to all our
employees for their outstanding contribution to the
company. I would also like to thank our business partners,
investors and customers for their ongoing support. I am
confident that by working together and staying focused on
our priorities we can realise our aspiration of becoming a
global generic drug company.
Nazmul Hassan MP
Managing Director
and Kuwait – the first time a Bangladeshi pharmaceutical
company has exported prescription medicines to these
latter three countries.
The global pharmaceutical market reached $1.06 trillion
in 2015, growing by 5% percent over the previous year,
according to IMS. The global generic drugs market
currently stands at more than $300 billion, with consistent
double digit growth, driven by increasing demand both in
developed and emerging economies. The IMS projects that
total spending on medicines will reach $1.4 trillion by 2020
due to greater patient access to chronic disease treatments
and breakthrough innovations in drug therapies. Global
spending is forecast to grow at a 4-7% compound annual
rate over the next five years. Generics, non-original branded
and over-the-counter (OTC) products will account for 88%
of total medicine use in pharmerging markets by 2020,
and provide the greatest contribution to increased access
to medicines in those countries. The IMS report points out
that more than 90% of US medicines will be dispensed
as generics by 2020. Generic medicines will continue to
provide the vast majority of the prescription drug usage
in the US, rising from 88% to 91-92% of all prescriptions
dispensed by 2020. Overall, spending on medicines in the
US will reach $560-590 billion by 2020, a 34% increase in
spending over 2015.
As mentioned, Beximco Pharma became
the first
Bangladeshi company approved by the US FDA. This
is a major milestone for the company and is in line with
our expectation and aspiration towards becoming a
global generic drug player. This approval was a result
of our successful audit by the US FDA in January 2015,
remarkably without issuance of any 483 observation (a
483 form is issued when the US FDA has observations
of non-compliance or deviation from Good Manufacturing
Practices (GMP). We also received US FDA clearance for
carvedilol, a prescription drug for treating hypertension,
in the last quarter of 2015 and successfully exported this
product in August 2016. To date, we have submitted a total
of five Abbreviated New Drug Applications (ANDA) to the US
FDA, which are currently under review.
Our export sales have seen an impressive 68.3% growth
in the year and we have strengthened our presence in
several Asian and African countries. We continue to see
excellent growth opportunities across our existing markets
and we are actively evaluating opportunities to extend our
geographic footprint by replicating our successful model in
other emerging markets.
Breakthrough generics
Launched generic versions of breakthrough Hepatitis C drugs
Sovaldi (Sofosbuvir) and Harvoni (Sofosbuvir+Ledipasvir).
The latter was the fi rst generic copy in the world.
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How We Performed in 2015
Achieved sales turnover of BDT 12,965.51 million with a growth of 15.7% over 2014
Launched 23 products in the domestic market; 2 of which were launched for the first time in Bangladesh
Launched generic version of revolutionary Hepatitis C drugs Sovaldi® and Harvoni® under the brand names
Sofovir-C® and Lesovir-C® respectively; Lesovir-C® being the first generic copy of Harvoni® in the world
Napa Extra became the first brand to cross Tk 1 billion mark
Export sales registered 68.3% growth over 2014
Entered 5 new markets: Australia, Iraq, Indonesia, Burundi and Costarica
Launched Pantoprazole in Australia
Registration of 46 products (31 generics) completed in 17 countries
Became the first Bangladeshi pharmaceutical company to be approved by
the US Food & Drug Administration (US FDA)
Received US FDA approval for a prescription drug (carvedilol) for the US market
January-June 2016
Introduced 9 new products in the domestic market
Entered 5 new markets namely Taiwan, Guatemala, Peru, Gabon and Kuwait
Awarded the National Export (Gold) Trophy for a record fifth time
Became the first Bangladeshi company to commence medicine export to Taiwan and Kuwait
Registration of 83 new products (61 generics) completed in 21 countries
Net sales grew by 13.1% to Tk.7,069 million
Unveiling the commemorative plaque to mark the First Shipment to U.S.A
from left US Ambassador to Bangladesh her excellency Marcia Stephens Bloom Bernicat, Adviser BEXIMCO Group Shayan F. Rahman, Beximco Pharma Managing Director Nazmul Hassan MP
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What We Offer
Beximco Pharma currently produces more than 400 generics in well over 500 strengths and dosage forms. It also
produces a number of active pharmaceutical ingredients (APIs). Beximco Pharma’s portfolio encompasses various
therapeutic categories, including antibiotics, analgesics, respiratory, cardiovascular, central nervous system, dermatology,
gastrointestinal etc. The company has sound expertise with specialized and advanced drug delivery systems that have
created strong differentiation. Many of its brands remain consistent leaders in their respective therapeutic categories and
the company continuously reviews and expands its product portfolio in order to ensure that people have access to newer,
better treatment options at affordable cost. The expanding portfolio, including high value, differentiated, and difficult to
copy products will continue to drive strong growth in the coming days.
We have launched the generic version of revolutionary Hepatitis C drugs Sovaldi® and Harvoni® under the brand names
Sofovir C® and Lesovir C® respectively; Lesovir C® was the first generic copy of Harvoni in the world.
Putting patients at the heart of our business has always remained our guiding principle. Our mission is to ensure health
and wellbeing of the people by providing affordable medicines.
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What We Offer | Annual Report 2015-16 | 17
Our Manufacturing Capabilities
Benchmarked to global standards, our state of the manufacturing facilities are spread across a 22-acre area located near
the capital city, Dhaka, which houses facilities for manufacturing tablets, capsules, intravenous fluids, liquids, creams,
ointments, suppositories, metered dose inhalers, ophthalmic drops, injectables as well as the bulk paracetamol production
unit. The site has its own utility infrastructure to ensure adequate generation and distribution of electricity with an installed
capacity of 10 MW. There are also water purifying and liquid nitrogen generation facilities. Our penicillin API and formulation
units are located at a different site at Kaliakoir. Currently a new modern facility is being constructed at Tongi with larger
capacity to cater to the growing demand.
Dry Powder Inhaler
Metered Dose Inhaler
Prefilled Syringes
Intravenous Fluid
Sterile Ophthalmic
Lyophilized Injectables
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Our Manufacturing Capabilities | Annual Report 2015-16 | 19
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Our Global Accreditations
Benchmarked to international standards, our manufacturing facilities have been approved by the regulatory authorities of
USA, Australia, Europe, Brazil and Canada, among others. In 2015, BPL became the first Bangladeshi company approved
by the US Food and Drug Administration (US FDA). Beximco Pharma also has the unique distinction as the only Bangladeshi
company to get listed on the AIM of London Stock Exchange.
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Our Global Accreditations | Annual Report 2015-16 | 21
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Research and Development
As a leading generic drug manufacturer, our key strength lies in our ability to excel in developing generic formulations
and technologically complex products. We have already proven our skills with successful development of differentiated
formulations such as MDI, DPI, nasal sprays, sterile ophthalmics, lyophilized injectables and so on which are very difficult
to imitate. Our new state-of-the-art R&D Centre now facilitates the development of products and processes in line with
our R&D strategy keeping in focus better productivity. This will provide the company stronger differentiation in terms of
efficient product development, DDS expansion, regulatory filings etc. We are also pursuing research collaboration with
universities and biotech companies both at home and abroad for strengthening our capabilities in selected areas.
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Research and Development | Annual Report 2015-16 | 23
Awards and Accolades
National Export (Gold) Trophy
ICSB National Award
Beximco Pharma received the best corporate governance award at 2nd ICSB National Award-2014. Beximco Pharma
secured first position in the pharma and chemical category. Company’s Managing Director Mr. Nazmul Hassan MP
received the award from Finance Minister AMA Muhith on November 11, 2015.
Most Admired Brand of Asia 2015
Beximco Pharma has been selected as one of the
Most Admired Brands of Asia in a gala event held in
Singapore on 21 May 2015. This has been a World
Consulting & Research Corporation (WCRC) and
ibrands360 research initiative – the largest multi-
platform brand credible listing involving the most
significant brands from Asia that have contributed to
the success story of Asian economy. These brands
have made it to the top due to their innovative
marketing strategies and tremendous brand recall
that has contributed significantly to their success. Some of the other participating brands include
Samsung, LG, Honda, Hyundai, Petronas, Singtel, Singapore Airline, Panasonic, Cannon, Mitsubishi,
Nissan etc. Beximco Pharma was the only brand chosen from Bangladesh.
At the same event, Beximco Group Vice Chairman Mr. Salman F Rahman was awarded the prestigious Visionary of the Year
Award for his tremendous contribution towards the growth of Bangladesh economy and creating a world class business
group Beximco. Prominent personalities like Liew Mun Leong, Chairman Changi Airport, Singapore and Kumar Manglam
Birla, Chairman Aditya Birla Group were awarded in this category.
Beximco Pharma was awarded the National Export (Gold) Trophy for the year 2011-2012 for highest export in the
pharmaceutical sector. The Company won this prestigious award a record five times. Honorable Prime Minister
Sheikh Hasina handed over the trophy to Mr. A S F Rahman, Chairman, Beximo Group and Mr. Nazmul Hassan
MP, Managing Director, Beximco Pharma in a ceremony held on 28 August 2016.
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Awards and Accolades | Annual Report 2015-16 | 25
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Awards and Accolades | Annual Report 2015-16 | 25
Beximco Pharma Shortlisted for SCRIP Award
Beximco Pharma has been shortlisted for the SCRIP award 2016, for the second consecutive year, in the category “Best
Company in an Emerging Market”. Companies nominated in this category are those based in emerging markets in Asia,
Central and Eastern Europe, Central and South America, the Middle East and Africa. SCRIP Award is among the most
prestigious in the pharmaceutical industry which recognizes the successful pharma companies globally. SCRIP nominees
for the year, like previous years, in different categories included leading multinational companies like Pfizer, Novartis, Astra
Zeneca, Merck, GSK, Hikma, Dr. Reddy’s, Astellas and so on. Beximco is the only company from Bangladesh nominated for
a SCRIP award. The company was also nominated for a SCRIP award in 2013 in the category “Best Management Team of
the Year 2016”.
Beximco Pharmaceuticals Ltd. commenced export of medicine to Kuwait on 16th June, 2016. This is the first time
a Bangladeshi pharma company has launched pharmaceutical products in any gulf member country. A launching
ceremony to mark the first shipment of consignment to Kuwait was held at factory premises in presence of the
Ambassador of Kuwait, His Excellency Mr. Mohammad A.H. Hayat. Vice Chairman of Beximco group Mr. Salman F.
Rahman, Beximco Pharma’s Managing Director Mr. Nazmul Hassan MP, Chief Operating Officer Mr. Rabbur Reza
and other high officials of the company were also present on this occasion. The Ambassador expressed high
satisfaction over the state-of-the-art facilities and quality control practices of Beximco Pharma.
Initially two metered dose inhaler products for asthma and respiratory disorder namely Azmasol® (Salbutamol)
and Bexitrol®-F (Salbutamol plus Fluticasone) and one blood pressure drug Amdocal (Amlodipine) are being
exported to Kuwait.
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On 4th August 2016, Beximco Pharma
scripted a piece of history by becoming the
first Bangladeshi pharmaceutical company to
export a prescription medicine to U.S.A.
Bangladeshi pharmaceutical
companies have been exporting
medicines to more than 100
countries, but not to the U.S.A. The
US FDA is regarded as the most
stringent regulatory body in the world
and rightfully considered the
benchmark for highest international
quality standards. We earned the
right to export to U.S.A. last year.
And we have fulfilled our promise by
becoming the first company from
Bangladesh to export prescription
medicine to U.S.A.
proudly Made in Bangladesh.
Exporting Health to U.S.A.
Made in Bangladesh
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A company’s achievement
A country’s Pride
6
7
2
1
4
3
5
9
8
10
1. Honorable Finance Minister, Health and Family Welfare Minister, the US Ambassador
and Beximco top management at the US product launching event
2. Unveiling of the commemorative plaque by the US Ambassador Ms. Marcia Stephens
Bloom Bernicat at the Tongi factory
3. The US Ambassador inside the FDA approved manufacturing plant
4. Exchanging greetings with senior officials at the factory
5. A glimpse of the audience at the launching ceremony
6. The US Ambassador showing the Beximco product intended for the US market
7. Managing Director of Beximco Pharma delivering his keynote speech
8. The US Ambassador delivering her speech
9. The US Ambassador with high officials at the factory premises
10. Guests being briefed about the manufacturing operations
Celebrating the historic milestone:
The first ever shipment of Bangladeshi medicine to U.S.A
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US Export Launching Ceremony
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Our People
Beximco Pharma owes its stories of success and accomplishments to 3,500 strong workforce, who have stood by the
company through thick and thin. The BPL workforce is charged with the life-force from highly skilled and dedicated
professionals. People are our most valuable assets and we always recognize that they are the lifeblood of this company
and their collective resolve to excel- will propel us forward to reach new heights. We seek to provide a workplace that
inspires people to be the best they can be. Our ability to transform ourselves is driven by a strong emphasis on employee
empowerment at every level.
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Our People | Annual Report 2015-16 | 35
Annual Sales & Marketing Conference, Cox’s Bazar 2015
Annual Sales & Marketing Strategic Briefing, Singapore 2015
Annual Finance Conference
36 | Annual Report 2015-16 | Our People
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Our People | Annual Report 2015-16 | 31
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EXPORT MARKETS
Europe
Austria
Germany
Romania
Turkey
Latin & Central America
Chile
Belize
El Salvador
Colombia
Surinam
Nicaragua
Costa Rica
Caribbean
Jamaica
Netherlands Antilles
USA
Asia
Singapore
Hong Kong
Cambodia
Nepal
Sri Lanka
Philippines
Thailand
Bhutan
Macau
Malaysia
Indonesia
Afghanistan
Azerbaijan
Vietnam
Middle East
Yemen
Jordan
Iraq
Kuwait
Africa
Kenya
Ghana
Somalia
Nigeria
Benin
Liberia
South Africa
Ethiopia
Mauritius
Mozambique
Sudan
Burundi
Uganda
Lesotho
Tanzania
Pacific Island
Fiji
Papua New Guinea
Solomon Island
Kiribati
Tonga
Samoa
Australia
U.S.A
CARIBBEAN
EUROPE
ASIA
MIDDLE EAST
AFRICA
LATIN & CENTRAL AMERICA
PACIFIC ISLAND
AUSTRALIA
Beyond Borders
Beximco Pharma is a leading exporter of medicines in Bangladesh and the company has so far expanded its geographic
footprint to more than 50 countries. With our visible and growing presence in regional markets of Asia and Africa, over the
years we have built the reputation of a quality generic manufacturer. We are now geared up to build presence in regulated
markets of Australia, EU and USA. We continue to see excellent growth opportunities across our existing markets and we
are actively working to develop our presence in other emerging markets. To expand our export business and to capitalize
on the generic drug opportunities in overseas markets– we continue to pursue approvals from leading drug regulatory
authorities. US FDA approval of our facility followed by carvedilol approval will open up new opportunities for the company.
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Beyond Borders | Annual Report 2015-16 | 39
What We Do for the Society
Corporate social responsibility (CSR) has been an integral part of our strategic commitment, and we are always guided by
strong ethical values to operate responsibly within broader social and economic context. We strongly believe we can only
be successful if we create value not just for the company but also for the society we live in. We invest in supporting the
communities where we operate and doing so we achieve sustainability and growth by improving the health and wellbeing
of the people. Some of our major CSR activities carried out in 2015 are:
Support to Biomedical Device Development
BPL extended financial support to Professor K S Rabbani,
Chairperson, Department of Biomedical Physics &
Technology, Dhaka University in his project of developing
low cost mechanical prosthetic hand. This small support
from Beximco helps provide improved version of prosthetic
hands at a minimal cost to thousands of amputees who
cannot afford them due to high cost of the imported ones.
In October, low cost portable ECG machines developed by
Professor K S Rabbani were distributed to rural doctors to
promote use of the machine in emergency cases. Beximco
Pharma fully sponsored these machines as a part of its
initiative to promote locally developed medical devices.
World Environment Day
Like previous years, Beximco Pharma celebrated the World
Environment Day 2015 on June 5 in association with
Volunteer for Bangladesh (VBD), the youth wing of Jaago
Foundation. The theme for this year was “16 Crore Dreams,
One Planet, Consume with Care.’’ There was a series of
events held nationwide which included intensive social
media awareness, workshop among school students on the
importance of environment and nature, a conversation with
the DCC Mayor and a national cycle rally.
Universal Children’s Day
Beximco Pharma, together with the Jaago Foundation,
the Universal Children’s Day 2015 under
observed
the tagline “Quality Education for All” which is the #4
Sustainable Development Goal (SDG) declared by the UN,
This signature campaign of Jaago Foundation included
digital marketing, roundtable discussion, talk shows in TV,
workshops, press conference, cultural activities, carnivals
and street activities - all to raise awareness about children’s
rights and education.
Free Health Camp
Beximco Pharma continued its support with free medicines
for various health programs that included free medical
camps of UN Mission at Congo, medicines for Biswa Ijtema
etc.
Working Students’ Day
Beximco Pharma was a sponsor of the UCEP Bangladesh’s
annual event Working Students Day held on December
15. Around 2000 underprivileged students, who are
being provided technical education free of cost by UCEP,
celebrated the day through art competition, cultural
program, sports, exhibition and other programs.
Iftar with Jaago Foundation Students
Beximco Pharma’s Managing Director Nazmul Hassan MP
attended Jaago Annual Iftar on June 29, 2016. He spent
time with the under privileged students and sponsors of
Jaago Foundation school. Beximco Pharma is a long time
supporter and sponsor of various Jaago initiatives.
ICAAP Conference
Beximco Pharma was the key sponsor of the 12th
International Congress on AIDS in Asia and the Pacific
(ICAAP) held in Dhaka during March 12-14, 2016. ICAAP is
the largest forum on AIDS in the region. Hon’ble President
of Bangladesh Mr. Abdul Hamid inaugurated the program
which was attended by hundreds of international visitors,
scientists and policymakers. Honorable Health Minister
Mr. Mohammed Nasim, MP visited Beximco Pharma stall
and praised about company’s role in providing affordable
medicines for all.
Pulmocon
Beximco Pharma in association with Bangladesh Lung
Foundation organized 4th international conference on Lung
Health (PULMOCON 2015) during November 18-19, 2015
at Krishibid Institution Bangladesh (KIB). A large number of
doctors and foreign speakers participated in the conference.
International Summit on Environment
Beximco Pharma was the Health Partner of the International
Summit on Environment “Green Inspiration 2016” which
was organized by Notre Dam College in association with
the Ministry of Environment during February 12-13, 2016.
40 | Annual Report 2015-16 | What We Do for The Society
40 | Annual Report 2015-16
What We Do for The Society | Annual Report 2015-16 | 41
Annual Report 2015-16 | 41
Group Art Exhibition
Beximco Pharma extended support to a group of 13
emerging female artists in promoting their creative work.
Week-long art exhibition was held on February 09-15, 2016
at Zainul Gallery, Faculty of Fine Art, DU inaugurated by
prominent artist Prof. Samarjit Roy Chowdhury.
International Women’s Day
Beximco Pharma celebrated International Women’s Day
with a number of programs held on March 08, 2015 at
Millon Hall, BSMMU with 600 Gynaecologists of Bangladesh.
World Diabetes Day
Beximco Pharma in association with Bangladesh Diabetes
Association (BADA) celebrated World Diabetes Day 2015
under this year’s theme “Healthy Living and Diabetes”.
On this occasion, Beximco Pharma arranged a number of
awareness programs in different areas of capital city which
includes free diabetes check, providing leaflets, guide
books etc.
World Osteoporosis Day
The World Osteoporosis Day was observed on October 20
throughout the nation. On this occasion, Beximco Pharma
arranged an array of events including free health camp,
consultation on osteoporosis, Bone Mineral Density (BMD)
camps to raise awareness about osteoporosis.
3rd BPL MGCC Golf Tournament
Beximco Pharma sponsored 3rd BPL MGCC Golf Tournament
which took place at Moinamoti Golf and Country Club
(MGCC), Comilla Cantonment during 2nd week of November,
2015.
Corporate Events
Celebration of US FDA Approval
The celebration program on the occasion of Beximco
Pharma’s US FDA approval was held on 19th October in
the factory and Managing Director Mr. Nazmul Hassan, MP
and other senior members of the company attended the
program.
Inauguration of Annual Sports
Mr. Nazmul Hassan, MP inaugurated the Factory Annual
Sports 2015 program on 19th October, and spent time with
all the staffs and employees.
Annual Cultural Program
Management of Beximco Pharma attended the Annual
Cultural Program organized by Beximco Sramik-O-
Karmachari Union on 10 April, 2015 at Factory Complex.
Participation at CPhI Worldwide 2015
CPhI Worldwide was held during October 13-15, 2015
in Madrid, Spain. Beximco Pharma, like previous years,
attended the biggest pharmaceutical event with a stall for
showcasing its products to prospective clients from all over
the world.
Participation at CPhI China 2015
CpHI China is a major exhibition for the global pharma
industry, especially for API sourcing which was held during
24-26 June in Shanghai.
42 | Annual Report 2015-16 | What We Do for The Society
42 | Annual Report 2015-16
Corporate Events | Annual Report 2015-16 | 43
Annual Report 2015-16 | 43
Celebration of International Women's Day 2016
Beximco Pharma celebrated International Women's Day 2016 on March 8 with Wasfia Nazreen. She spent the afternoon
with Beximco’s female employees and had a lively session sharing her experience with them. Winner of National Geographic
Emerging Explorer award, she is the first Bangladeshi to have reached the summit of the highest mountains of each of the
seven continents, popularly known as the Seven Summits.
Motivational Session
44 | Annual Report 2015-16 | Corporate Events
We are building a global generic drug company focused on providing high quality,
affordable generic drugs to patients around the world.
44 | Annual Report 2015-16
Corporate Events | Annual Report 2015-16 | 45
Annual Report 2015-16 | 45
A day-long motivational session, conducted by a renowned motivational trainer from India,was attended by the employees
of Beximco Pharma.
Post Balance Sheet Update
• Became the first Bangladeshi pharmaceutical company to commence export of pharmaceutical products to the US
- Exported Carvedilol, a prescription drug for treating hypertension
• Completed first product registration in Canada
- Another first for a Bangladeshi pharmaceutical company
• Commenced export to Zimbabwe
• Successful regulatory audit by the Nigerian regulatory authority (NAFDAC)
• Two ophthalmic products registered in Australia
Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
Notice of the 40th Annual General Meeting
Notice is hereby given that the 40th Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held on
Saturday, November 19, 2016 at 10.30 a.m. at Beximco Industrial Park, Sarabo, Kashimpur, Gazipur to transact the following business:
1. To receive, consider and adopt the Audited Financial Statements of the Company for the period of 18 months ended on
June 30, 2016 together with reports of the Auditors and the Directors thereon;
AGENDA
2. To declare/approve 5% final Cash Dividend, 5% Stock Dividend and 10% Cash Dividend (already paid as interim dividend)
for the period of 18 months ended on June 30, 2016;
3. To elect Directors;
4. To approve the audit fee for the period of six months-January 1, 2016 to June 30, 2016; to appoint Auditors for the year
2016-2017 and to fix their remuneration;
5. To adopt changes in Accounting year of the Company from January-December to July-June pursuant to the provision of the
Finance Act 2015;
6. To transact any other business of the Company with the permission of the Chair.
By order of the Board,
(MOHAMMAD ASAD ULLAH, FCS)
Executive Director & Company Secretary
Dated: 18 October, 2016
Notes:
(1) The Record Date of the Company for entitlement of 5% Final Cash dividend shall be November 1, 2016. The Shareholders
whose names will appear in the Share Register of the Company or in the Depository Register on the record date i.e.
November 1, 2016 will be entitled to receive the 5% final cash dividend.
(2) 5% Stock Dividend will be entitled by the Shareholders whose names appeared in the Share Register of the Company or
in the Depository Register on the earlier declared record date ie. May 12, 2016.
(3) 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.
(4) Admission to the meeting room will be strictly on production of the attendance slip sent with the Notice as well as
verification of signature of Member(s) and/or Proxy-holder(s).
(5) Members are requested to update particulars of their Bank Account, change of address (if any) and 12 digit Taxpayer’s
Identification Number (E-TIN) through their respective Depository Participant.
(6) No gift or benefit in cash or kind shall be paid to the holders of equity securities in terms of Clause (c) of the Notification
No.SEC/SRMI/2000-953/1950 dated 24 October 2000 for attending the AGM of the Company.
46 | Annual Report 2015-16
46 | Annual Report 2015-16 | Post Balance Sheet Update
Annual Report 2015-16 | 47
Notice of Annual General Meeting | Annual Report 2015-16 | 47
Chairman’s Statement
attention to quality have helped us earn the trust within the
generic drug industry.
At the end of 2015, the World Trade Organization TRIPS
Council extended a waiver that allows exemption to the least
developed countries from applying and enforcing IP rights
on pharmaceutical products until January 1, 2033. This is
positive news for generic pharmaceutical companies like
us as it provides an extended opportunity to develop and
launch generic versions of patented products.
Our ongoing expansion project to enable us to diversify our
portfolio, expand our production capacity and upgrade a
number of our existing units with the intention of securing
the Company’s current and future growth is progressing
as planned and is expected to be completed by the end of
2017. As previously announced, the plant and machinery to
be procured for the project is partially being financed under
an overseas loan agreement with BHF Bank, Germany.
Additionally, we have initiated a project to implement
Oracle Enterprise Resource Planning (ERP) solutions across
the organisation. Once implemented, we believe this will
help improve operational efficiency and productivity in the
Company.
A business is only as good as its people. We at Beximco
Pharma believe that our employees are the backbone of
the organisation. Our employees’ constant hard work,
dedication, skill and knowledge continue to propel the
Company forward and we remain committed to our focus
on people. Development of human resources is of utmost
importance to us and, as such, we continue to invest in
training and development program to equip our employees
with the knowledge and skills necessary to take the
organization to the next level.
In conclusion, I would like to convey my sincerest gratitude
and appreciation to all our stakeholders who have
contributed in making Beximco Pharma what it is today and
especially to our shareholders for their ongoing support.
Dear Shareholders,
On behalf of my fellow board members and everyone from the Beximco
Pharma family, I welcome you all to the 40th Annual General Meeting
of the Company.
In line with the new regulatory provision of the Finance Act 2015 and as
announced by the Company in May 2016, Beximco Pharma is required
to change its accounting year from January-December to July-June.
Unlike other years, we are therefore reporting for a period of 18 months
ending on June 30, 2016 to accommodate first time adoption of this
change.
I am pleased to report continued progress throughout the reporting
period. The Company maintained its strong growth and achieved a
13.2% increase in sales in 2015 in the domestic market. The export
business did exceptionally well in achieving a 68.3% increase over the
previous year. This sales growth momentum continued for the reported
first half of 2016. In addition to registering impressive growth in sales
and profit, we have made progress, as planned, in key operational areas
by expanding the product portfolio, registering products in overseas
markets and obtaining product and plant certifications.
In 2015, we achieved a major milestone by becoming the first
Bangladeshi pharmaceutical company to be approved by the US Food
and Drug Administration (US FDA). Subsequently, in August 2016, we
commenced export to the US market, making history for the Bangladesh
pharmaceutical industry. Additionally, during the period under review,
we initiated export to Australia and the Gulf country, Kuwait, among
others. In recognition of our commendable performance in export of
pharmaceutical products, we were awarded the National Export (Gold)
Trophy for the record fifth time. Our international accreditations and
Thank You,
A S F RAHMAN
Chairman
48 I Annual Report 2015-16
l Chairman’s Statement
Annual Report 2015-16 I 49
Directors’ Report to the
Shareholders
2. Operating Performance
2.1. Domestic and Export Sales
January-December 2015
Dear Shareholders,
January-June 2016 (Six Months)
During January-December 2015, the company achieved net sales of Taka 12,965.51 million, registering an impressive
15.7% growth over the prior period. Domestic sales (the key driver of our growth), registered an encouraging 13.2%
increase over the previous period. In 2015, 23 new products (two of them introduced for the first time in the Bangladeshi
pharma market) were added to our portfolio.
In addition to our domestic sales, the company achieved remarkable growth in export sales. Our revenue from export in
2015 amounted to Tk. 842.3 million, a steep 68.3% up over Taka 500.5 million in 2014. Export now accounts for 6.5% of
our total revenue as against 4.5% in 2014. We registered 46 products in 17 countries and entered into five new markets.
On behalf of the Board of Directors of Beximco Pharmaceuticals Limited I am pleased to place before you the Directors’ Report and
Audited Accounts of the company along with the report of the auditors thereon.
Following a change made through the Finance Act 2015, the accounting year of companies, excluding banks, insurance and non-
banking financial institutions (NBFIs), will commence on 1 July and conclude on 30 June. For first time adoption of this change, Beximco
Pharma’s reporting period has been extended to June 30, 2016, in accordance with the directives of the Bangladesh Securities and
Exchange Commission. Accordingly, we present the audited accounts for the period of 18 months from January 1, 2015 to June 30,
2016.
1. Business Outlook- A General Overview
After the political turbulence in the first quarter of 2015 that seriously disrupted Bangladesh’s production and distribution system,
political calm returned to prevail for rest of the year. Despite the initial setback, Bangladesh’s economy continued to maintain its
steady growth with GDP growing at 6.5% in 2015. The macroeconomic indicators remained positive; moderate inflation at 6.2%,
lower import payments due to slump in global oil prices, strong forex reserve reaching ever high at 27.5 billion, moderate growth
in export and robust domestic demand contributed to the achievement of the growth. Fairly stable economic growth over the years
led graduation of the country from low income to “lower middle income” status as per the World Bank classification. The first half
of 2016 passed without any significant political disruptions affecting the business. The majority of forecasts see a stable future
outlook with economy expected to be growing between 6.7% and 7%.
On November 6, 2015, the WTO-TRIPS Council granted the least developed countries (LDCs) exemptions from pharmaceutical
patent until at least January 1, 2033. This is an extension of the previously granted exemption which was scheduled to expire on
December 31, 2015. In February 2015, the LDCs led by Bangladesh applied for extension of the waiver period till their graduation
from the LDC status. Bangladesh, which has already developed a solid pharmaceutical manufacturing capability, can further
capitalise on the opportunities created through the waiver.
Recently, there has been a significant change in the pay structure for the government employees resulting in an increase of almost
100% of their current pay. The drastic change in the salary of the public sector employees will have bearing on the private sector
for upward revision of salary of their workforce.
The implementation of the new Value Added Tax and Supplementary Duty Act 2012, which was due to replace the existing 1991
law effective from July 1, 2016 has been deferred. This will now be effective from July 1, 2017. The detailed rules to supplement
the act are, however, yet to be made publicly available. The act is expected to have simplified operating procedures as compared
to the current one. No significant change in the VAT regulation for pharmaceutical products is foreseen.
Net sales during January-June 2016 grew by 13.1% to reach at Taka 7,069.0 million. Sales in the domestic market
increased by 13.6%, while export increased by 5.3%. During this period, nine new products have been introduced in the
domestic market and 83 products have been registered overseas. We commenced exports to five new markets, including
Kuwait and Taiwan.
2.2. Profitability
January-December 2015
Further to attaining robust growth in sales, we also achieved our profit target. Pre-tax profit of the Company increased by
10.8% to reach at Tk. 2,337.1 million compared with Tk. 2,109.6 million in 2014. The company earned post- tax profit of
Tk. 1,954.3 million, which is 27.9% higher than the previous year mainly due to the deferred tax benefit from the lower
corporate tax rate. Improved product mix, relatively stable domestic currency against the US Dollar and lower domestic
inflation helped not only to maintain but also to slightly improve our gross profit margin to 46.3% from 45.6%.
January-June 2016 (Six Months)
Pre and post-tax profit for the six month amounted to Tk. 1,320.7 million and 993.8 million, respectively. The pre-tax profit
recorded an increase of 20.8% as compared to the same six month (un-audited) period of the prior year. EPS stood at
Tk. 2.57.
2.3. Global Accreditation
Beximco Pharma became the first Bangladeshi company to receive US FDA accreditation which is a major milestone not
only for us but also for the industry as a whole. Moreover, Beximco Pharma received approval for a prescription medicine to
be manufactured in Bangladesh for the US market. Following this approval, in August 2016, we commenced export to the
US market making history for the Bangladeshi pharmaceutical industry. We feel proud that our manufacturing facilities are
also approved by the leading regulatory authorities of Australia, Europe, Brazil and Canada, among others.
3.
Change in Accounting Year
As mentioned, the Finance Act 2015 passed by the Bangladesh parliament requires companies, excluding banks, insurance
and NBFIs to follow July-June as their financial year. This change in the reporting period is effective from July 1, 2016.
Consequent to the provision of the Finance Act, we need to adopt an accounting year that will commence from July 1 and
conclude on June 30. To comply with the regulation, we propose that effective from July 1, 2016 our accounting year will
be a 12-month period starting from July 1 and ending June 30 instead of January 1 to December 31.
50 I Annual Report 2015-16
l Directors’ Report to the Shareholders
Directors’ Report to the Shareholders l
Annual Report 2015-16 I 51
4.
Profit and its Appropriation
7. Auditors
We report the financial results of the Company for the 18 month period ending on 30 June 2016 and recommend the appropriation
as below:
January 1, 2015 to
June 30, 2016
(18 months)
Taka in Thousand
January 1, 2014 to
December 31, 2014
(12 Months)
2,948,054
20,402
8,134,299
11,102,755
(193,122)
(386,244)
(193,122)
10,330,267
1,528,298
16,061
7,141,718
8,686,077
(183,926)
-
(367,852)
8,134,299
Net Profit after Tax
Adjustment for Depreciation of Revalued Assets
Profit brought Forward from Previous Year
Profit Available for Appropriation
Proposed Dividend:
Stock Dividend
Cash Dividend (Interim)
Cash Dividend (Final)
Profit Carried Forward
5. Dividend
As previously annouced, on 20 April 2016, the Board of Directors considered and approved the audited accounts for the 12 months
period ending on 31 December 2015. The Board of Directors recommended 10% cash dividend i.e. Taka 1 per share and 5%
stock dividend i.e. 5 shares for every 100 shares held for the year 2015 for onward approval in the Annual General Meeting (AGM),
scheduled on 4 June 2016. Subsequently, following the directives from the BSEC, it was decided to hold AGM with 18 month
accounts from January 2015 to June 2016 to accommodate the first adoption of the change in the accounting year. Accordingly,
another audit was carried out for the period of the six months ended 30 June 2016 and a consolidated 18 months accounts was
placed to the Board of Directors in their meeting held on 6 October 2016. After considering the 18 months accounts, the Board
recommended 5% cash (Tk. 0.50 per share) as final dividend in addition to 5% stock dividend (5 shares for every 100 shares held)
and 10% cash (Tk. 1.00 per share) dividend already paid as an interim dividend.
6. Retirement and Re-election of Directors
The existing Auditors, M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C. R. Datta Road, Dhaka-1205 who
were appointed as Auditors of the Company in the 39th Annual General Meeting of the Company has carried out the audit for the
year ended 31 December 2015.
Due to the special requirement, as mentioned earlier, to prepare the 18 month audited accounts for approval in the AGM, M. J.
Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C.R. Datta Road, Dhaka-1205 was appointed to carry out audit
for the period 1 January 2016 to 30 June 2016 at an agreed fee of Tk. 700,000.
M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C.R. Datta Road, Dhaka-1205, the Auditors of the
Company retires at this meeting and has expressed their willingness to continue in office for the year 2016-17.
8. Statement of Directors on Financial Reports
Directors are pleased to report that:
a. The financial statements together with the notes thereon have been drawn up in conformity with the Companies Act, 1994
and Securities and Exchange Rules, 1987. These statements present fairly the Company’s state of affairs, the result of its
operations, cash flow and changes in equity.
b. Proper books of accounts of the Company have been maintained.
c. Appropriate accounting policies have been consistently applied in preparation of the financial statements except those
referred to in the financial statements and that the accounting estimates are based on reasonable and prudent judgment.
d. The International Accounting Standards (IASs)/ Bangladesh Accounting Standards (BASs)/International Financial Reporting
Standards (IFRSs)/Bangladesh Financial Reporting Standards (BFRSs), as applicable in Bangladesh, have been followed in
preparation of the financial statements.
e. Internal Control System is sound in design and has been effectively implemented and monitored.
f. There is no significant doubt about the ability of the Company to continue as a going concern.
9. Risks and Concerns
The pharmaceutical industry, like any other business industry, is exposed to political, economic, social, technological, environmental
and legal risks in addition to the financial risks embedded in any business transaction. The management is fully aware of the risks
and follows standard procedure for appropriate management of the risk. Depending on the nature, strategic decisions are taken
to avoid, reduce, transfer or accommodating the risks arising in the business management process. A further detail on various
financial risks has been discussed in Note 47 of the financial statements.
Mr. Osman Kaiser Chowdhury and Mr. Iqbal Ahmed, 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.
10. Related Party Transaction
Both Mr. Osman Kaiser Chowdhury and Mr. Iqbal Ahmed are long term directors in the Board. Mr. Chowdhury has been with the
Company since 1991. He is a member of the Institute of Chartered Accountants of England and Wales and a Fellow of the Institute
of Chartered Accountants of Bangladesh. He has over 13 years’ experience working abroad, including the United Kingdom.
Mr. Iqbal Ahmed has been in the Board since 1985 and holds senior positions in a number of entities within the Beximco Group of
companies. He received his Bachelor’s Degree in Science from the University of Dhaka in 1966. Previously he was the publisher
of “The Independent” an English daily newspaper in Bangladesh and the “Muktakantha”, a Bengali national daily newspaper.
Related party transactions are carried out on arm’s length basis. Audit committee while reviewing the financial statements
periodically carries out in-depth analysis of the transactions involving related parties. Note 34 of the financial statements provides
details of the transactions with the related party.
11. Certification by the Managing Director and Chief Financial Officer
Managing Director (Chief Executive Officer) and the Chief Financial Officer have certified to the Board that they have reviewed the
Financial Statements for the period 1 January 2015 to 30 June 2016 and to the best of their knowledge and belief:
a. The Financial Statements present a true and fair view of the affairs of the Company and are in compliance with existing
accounting standards and applicable laws
b. There is no statement which is materially untrue or misleading and there is no omission of facts in such statements
c. No transaction has been entered into by the Company which are fraudulent, illegal or in violation of the Company’s code of
conduct
52 I Annual Report 2015-16
l Directors’ Report to the Shareholders
Directors’ Report to the Shareholders l
Annual Report 2015-16 I 53
12. Key Operating and Financial Data
13. Board Meetings and Attendance
The summarized key operating and financial data for 2015-16 and immediately preceding four years are presented below:
Sixteen Board Meetings were held during the period under review. The attendance records of the Directors are as follows:
Directors
Number of
meetings attended
Directors
Number of
meetings attended
A S F Rahman
Nazmul Hassan MP
Iqbal Ahmed
Dr. Abdur Rahman Khan
16
16
16
16
Salman F Rahman
Osman Kaiser Chowdhury
A B Siddiqur Rahman
Shah Monjurul Hoque
16
16
16
16
On behalf of the Board
A S F Rahman
Chairman
Particulars
As on
June 30,
2016
December 31,
2015
December 31,
2014
December 31,
2013
December 31,
2012
December 31,
2011
Taka in Thousand
Authorized Capital
Paid Up Capital
Shareholders’ Equity
Fixed Assets (gross)
9,100,000
3,862,442
23,059,412
28,756,326
9,100,000
3,862,442
22,478,627
28,325,506
9,100,000
3,678,516
20,920,185
25,818,728
9,100,000
3,503,349
19,775,552
23,051,128
9,100,000
3,046,390
18,408,162
20,316,639
9,100,000
2,517,678
17,128,128
19,289,344
Net Assets Value (NAV) per share- Taka
Market Price Per Share- Taka
Number of Shareholders
Foreign Investors
ICB including Investors Account
Sponsors, General Public & Others
60
83.50
67,679
83
878
66,718
58
84.10
74,655
82
879
73,694
57
58.70
89,913
68
882
88,963
56
47.20
92,831
68
880
91,883
60
55.90
86,290
66
898
85,326
68
93.60
88,697
58
896
87,743
Number of Employees
3,515
3,339
3,063
2,897
2,748
2,670
Particulars
For the period / Year
2015
(12 Months)
2014
(12 Months)
2013
(12 Months)
2012
(12 Months)
2011
(12 Months)
Taka in Thousand
12,965,507
842,339
6,000,339
2,337,130
1,954,285
11,206,886
500,469
5,104,191
2,109,556
1,528,298
10,490,699
671,289
4,838,800
2,093,594
1,404,763
9,289,115
470,116
4,389,401
1,909,829
1,319,389
7,890,242
390,315
3,786,533
1,677,849
1,198,525
Jan 2015 –
Jun 2016
(18 Months)
20,034,503
1,228,353
9,234,185
3,657,838
2,948,054
5%
15%
7.63
-
-
-
5.06
16.62
5%
10%
3.96
14.82
5%
10%
3.82
12.36
15%
-
3.77
14.83
21%
-
3.93
23.82
Total Sales
Export Sales
Gross Profit
Profit before Tax
Net Profit
Dividend:
Stock
Cash
EPS/Restated EPS-Tk.
Price Earnings Ratio (Times)
54 I Annual Report 2015-16
l Directors’ Report to the Shareholders
Directors’ Report to the Shareholders l
Annual Report 2015-16 I 55
Corporate Governance
Compliance Report
Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission’s Notification No. SEC/
CMRRCD/2006-158/134/ Admin/44 dated 07 August, 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
(Report under Condition No. 7.00)
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
1
1.1
1.2
1.2 (i)
1.2 (ii) (a)
1.2 (ii) (b)
1.2 (ii) (c)
1.2 (ii) (d)
1.2 (ii) (e)
1.2 (ii) (f)
1.2 (ii) (g)
1.2 (ii) (h)
1.2 (ii) (i)
1.2 (iii)
1.2 (iv)
1.2 (v)
1.2 (vi)
1.3
1.3 (i)
1.3 (ii)
1.3 (iii)
1.4
1.5
1.5 (i)
1.5 (ii)
1.5 (iii)
1.5 (iv)
1.5 (v)
1.5 (vi)
1.5 (vii)
1.5 (viii)
BOARD OF DIRECTORS (BOD)
Board’s Size [number of Board members to be 5 – 20]
Independent Directors (ID)
Number of Independent Directors [at least 1/5]
Holding no share or holding less than 1% shares
Not being a sponsor and connected with any sponsor or director or
shareholder holding 1% or more shares
Not having any pecuniary or otherwise relationship with the company
or its subsidiary/ associated companies
Not being member/director/officer of any stock exchange
Not being shareholder/director/officer of any member of stock
exchange or intermediary of capital market
Not being partner/executive at present or during the preceding 3
years of the company’s statutory audit firm
Not being an ID in more than 3 listed companies
Not convicted as defaulter in any loan of a bank or NBFI
Not convicted for a criminal offence
To be appointed by BOD and approved in the AGM
The post cannot remain vacant for more than 90 days
Laying down of code of conduct of Board members and recording of
annual compliance of the code
Tenure of Independent Director
Qualification of Independent Director
Being knowledgeable, having integrity, ability to ensure compliance
with laws and make meaningful contribution
Being a Business Leader/ Corporate Leader/ Bureaucrat/ University
Teacher(Economics/Business/Law)/CA/CMA/CS having 12 years of
management/professional experience
Prior approval of the Commission in special cases
Appointment of Chairman and CEO,defining their roles
Inclusions in Director’s Report to Shareholders
Industry outlook and possible future developments
Segment-wise or product-wise performance
Risks and concerns
Discussion on COGS, Gross Profit and Net Profit Margins
Discussion on continuity of Extra-Ordinary gain or loss
Basis for and a statement of related party transactions
Utilization of proceeds from issuing instruments
Explanation, if the financial results deteriorate after going for IPO,
RPO, Right Offer, Direct Listing, etc.
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
-
√
√
√
√
√
-
√
-
-
-
N/A
Company Operates in a Single
Product Segment
-
-
-
N/A
N/A
N/A
Condition
No.
Title
1.5 (ix)
1.5 (x)
Explanation about significant variance between Quarterly
Financial performance and Annual Financial Statements
Remuneration to directors including Independent Directors
1.5 (xi)
1.5 (xii)
1.5 (xiii)
1.5 (xiv)
1.5 (xv)
1.5 (xvi)
1.5 (xvii)
1.5 (xviii)
1.5 (xix)
1.5 (xx)
1.5 (xxi)
1.5 (xxi) (a)
1.5 (xxi) (b)
1.5 (xxi) (c)
1.5 (xxi) (d)
1.5 (xxii)
1.5 (xxii) (a)
1.5 (xxii) (b)
1.5 (xxii) (c)
2
2.1
2.2
3
3 (i)
3 (ii)
3(iii)
3.1
3.1 (i)
3.1 (ii)
3.1 (iii)
3.1(iv)
3.1(v)
3.1(vi)
3.2
3.2 (i)
3.2 (ii)
3.3
3.3 (i)
3.3 (ii)
Fair presentation in financial statements
Maintaining proper books of accounts
Consistent application of appropriate accounting policies, and
accounting estimates being reasonable and prudent
Following applicable IAS/BAS/IFRS/BFRS, and adequate
disclosure for any departure there-from, if any
Soundness and monitoring of internal control system
Statement regarding ability to continue as going concern
Significant deviations from last year’s operating results
Summary of key operating/financial data of last 5 years
Reason for non declaration of Dividend
Number of Board meetings and attendance of directors
Pattern of shareholding (along with name wise details)
Parent/Subsidiary/Associate Companies & related parties
Directors, CEO, CS, CFO, HOIA, their spouses & children
Executives (Top 5 salaried employees other than above)
Shareholders holding 10% or more voting interest
Appointment/re-appointment of a director
A brief resume of the director
Nature of his/her expertise in specific functional areas
Names of companies in which he/she holds directorship and
the membership of committees of the board
CFO, Head of Internal Audit and CS
Appointment of a CFO, a Head of Internal Audit and a CS and
defining their roles, responsibilities & duties
Attendance of CFO and CS in the meetings of the Board
Audit Committee
Having Audit Committee as a sub-committee of the BOD
Audit Committee to assist the BOD in ensuring fairness of
financial statements and a good monitoring system
Audit Committee being responsible to the BOD; duties of Audit
Committee to be clearly set forth in writing
Constitution of the Audit Committee
Audit Committee to be composed of at least 3 members
Audit Committee members to be appointed by BOD and at
least one Independent Director to be included
Audit Committee members to be “financially literate” and at
least one to have accounting/financial experience
Vacancy in Audit Committee making the number lower than 3
to be filled up immediately and within 1 month
The CS to act as the secretary of the Audit Committee
No quorum in Audit Committee meeting without one
Independent Director
Chairman of the Audit Committee
Chairman to be an Independent Director, selected by the BOD
Chairman of audit committee to remain present in AGM
Role of Audit Committee
Oversee the financial reporting process
Monitor choice of accounting policies and principles
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
-
N/A
No remuneration was paid to any Director during
the period under review except Managing Director
for serving as Chief Executive and the Independent
Directors for their attendance in Meetings.
-
-
N/A
N/A
-
√
√
√
√
√
√
√
-
√
-
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
56 I Annual Report 2015-16
l Corporate Governance Compliance Report
Corporate Governance Compliance Report l
Annual Report 2015-16 I 57
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
3.3 (iii)
3.3 (iv)
3.3 (v)
3.3 (vi)
3.3 (vii)
3.3 (viii)
3.3 (ix)
3.3 (x)
3.4
3.4.1
3.4.1 (i)
3.4.1 (ii) (a)
3.4.1 (ii) (b)
3.4.1 (ii) (c)
3.4.1 (ii) (d)
3.4.2
3.5
4
4.00 (i)
4.00 (ii)
4.00 (iii)
4.00 (iv)
4.00 (v)
4.00 (vi)
4.00 (vii)
4.00 (viii)
5
5 (i)
5 (ii)
5 (iii)
5 (iv)
5 (v)
6
6 (i) (a)
6 (i) (b)
6 (ii)
7
7 (i)
7 (ii)
Monitor Internal Control Risk management process
Oversee hiring and performance of external auditors
Review the annual financial statements
Review the quarterly and half yearly financial statements
Review the adequacy of internal audit function
Review statement of significant related party transactions
Review Letters issued by statutory auditors
Review disclosures/statements/ declarations about uses of funds Raised
through IPO/RPO/Rights Issue
Reporting of the Audit Committee
Reporting to the Board of Directors
Reporting on the activities of Audit Committee
Reporting on conflicts of interests
Reporting on suspected/presumed fraud or irregularity or material defect in
the internal control system
Reporting on suspected infringement of laws
Reporting on any other matter to disclose immediately
Reporting to BSEC
Reporting to the Shareholders and General Investors
External / Statutory Auditors
Non-engagement in appraisal/valuation/fairness opinions
Non-engagement in designing & implementation of FIS
Non-engagement in Book Keeping or accounting
Non-engagement in Broker-Dealer services
Non-engagement in Actuarial services
Non-engagement in Internal Audit services
Non-engagement in services determined by Audit Committee
Possessing no share by any partner or employee of the external
audit firm during the tenure of assignment
Subsidiary Company
Composition of BOD to be similar to holding company
One ID to be in both holding and subsidiary company
Minutes of Board meetings of subsidiary company to be placed at
following Board meeting of holding company
Minutes of respective Board meeting of holding company to state that
affairs of subsidiary company be reviewed
Audit Committee of holding company to review financial statements/
investments of subsidiary company
Duties of CEO and CFO
To certify that they have reviewed Financial Statements which
contain no untrue or misleading statement or omit no material fact
To certify that the statements present a true and fair view of affairs and are
in compliance with accounting standards and applicable Laws
To certify that no transaction is fraudulent, illegal or violation of company’s
code of conduct
Reporting and Compliance of Corporate Governance
Obtaining certificate regarding compliance and sending it to
shareholders along with the Annual Report
To state, in accordance with annexure, in directors’ report whether the
conditions has been complied with
√
√
√
√
√
√
√
-
√
-
-
-
-
-
√
√
√
√
√
√
√
√
√
-
-
-
-
-
√
√
√
√
√
-
N/A
-
-
-
-
-
-
-
-
-
-
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
58 I Annual Report 2015-16
l Corporate Governance Compliance Report
Certificate on Compliance of Corporate Governance Guidelines l Annual Report l 59
Annual Report 2015-16 I 59
External Auditor
The Committee reviewed the independence, objectivity and expertise of the independent auditors and based on the review made
recommendation to the board for reappointment of existing auditors M/S M J Abedin & Company, Chartered Accountants for the
year 2016-17 subject to the approval by the shareholders in the 40th Annual General Meeting.
Other Reviews and Activities
The senior management of the company from time to time attended various meetings of the audit committee on invitation
to apprise the members of the committee on various issues. During the period under review the committee in its meetings
monitored and reviewed the work of the internal audit team. Assessment and evaluation of internal control policy were made to
ensure that the company employs a sound system of internal control including internal financial control. The committee among
other periodically reviewed the financial reporting process of the company and the related disclosures. The committee noted no
material deviations or non-compliance or adverse audit findings that warrants for board or shareholders’ attention during the
period under review.
Dr. Abdur Rahman Khan
Chairman
Audit Committee
Report on the Activities of
The Audit Committee
Dear Shareholders,
I am pleased to present the report of the Audit Committee of Beximco Pharmaceuticals Limited in pursuance with the
Corporate Governance Guidelines of Bangladesh Securities and Exchange Commission (BSEC). This report is a brief on the
activities performed by the Audit Committee during the period January 2015 to June 2016.
Reviewing the Financial Statements
The Terms of Reference (TOR) of the Audit Committee has been established based on the guidelines prescribed by the
Bangladesh Securities and Exchange Commission which includes but not restricted to overseeing the financial reporting
process, monitoring accounting policies and principles, monitoring internal control risk management procedures, reviewing
the statement of significant related party transactions, reviewing potential conflict of interests etc.
As per the Terms of Reference, the committee in its meeting held on April 17, 2016 reviewed the Annual Financial Statements
for the year 2015. During the meeting the Chief Financial Officer presented the annual accounts along with the independent
auditors report to the committee and briefed the committee regarding the financial performance of the Company. The
committee after review decided to forward the audited accounts to the board for their approval.
However, as per a new government regulation companies other than Bank, Insurance and Non-Banking Financial
Institutions are required to maintain July-June as their financial year. Pursuant to this, Bangladesh Securities and Exchange
Commission (BSEC) subsequently issued guidelines for companies with respect to the first time adoption of the change
in the financial year. In accordance with the BSEC guidelines, BPL is required to prepare and publish audited accounts
covering 18 months period i.e. January 1, 2015 to June 30, 2016. Accordingly the accounts for the period January - June
2016 were subsequently audited and combined 18 months audited accounts along with the report of the auditor were
prepared and submitted to the audit committee for review.
The Audit Committee in its meeting held on September 28, 2016 reviewed the Financial Statements and the report of
the auditor for the 18 months period ending on June 30, 2016. The audit committee also had detailed discussion with
the members of the accounts and finance department on various aspect of the financial statements and accounts. The
committee in detail looked into the compliance of the disclosure requirements set by the BSEC for the special reporting that
covers longer than usual accounting period. The committee also reviewed the financial reporting process, discussed the
adequacy of the internal control processes in place to prevent errors and fraudulent activities and thoroughly scrutinized the
related party transactions carried out during the year. The committee was fully satisfied that the related party transactions
were made on an arm length basis in the normal course of business and the transactions have been adequately disclosed
in the financial statements. The independent auditors’ report also did not contain any material audit observation that
warranted the boards’ attention. The committee being satisfied, authorized for onward submission of the Audited Financial
Statements to the Board for approval.
Additionally, in 2015 the committee held four meetings - on 21st April to consider the draft annual accounts of 2014; on 11
May to examine the 1st quarter report; on 13th July to review the half yearly report; and on 19th October to examine the
3rd quarter report. In each case the committee held detailed discussion with senior management on various aspects of the
financial statements to ensure accuracy, consistency and compliance of the reports in all material aspects. The committee
also scrutinized the related party transactions and found that all related party transactions were made on an arm’s length
basis.
60 I Annual Report 2015-16
l Report on the Activities of The Audit Committee
Report on the Activities of The Audit Committee l
Annual Report 2015-16 I 61
Shareholders’ Meeting
The 39th Annual General Meeting (AGM) of the shareholders of Beximco Pharmaceuticals Limited was held on June 13, 2015
at Beximco Industrial Park, Saravo, Kashimpur, Gazipur. Mr. Salman F Rahman, Vice Chairman of the Company presided over
the meeting. All resolutions put before the shareholders were duly passed including the agenda of paying 10% cash and 5%
stock dividend for the year 2014. Performane of the company in 2014 as well as future strategies were briefly discussed in the
meeting. At the end of the meeting Chaiman expressed his appreciation towards shareholders for their interest in the company
and their continued support.
Audit Committee Meeting
62 I Annual Report 2015-16
l Shareholders’ Meeting
Shareholders’ Meeting l
Annual Report 2015-16 I 63
39th Annual General Meeting
Value Added Statement
For 18 Month Period Ended June 30, 2016
Value Added :
Sales & Other Income
Bought-in-Materials & Services
Applications :
Retained by the Company
Salaries and Benefits to Employees
Interest to Lenders
Dividend to Shareholders
Duties & Taxes to Govt. Exchequer
Taka in thousand
Tk.
%
23,737,402
(11,024,315)
12,713,087
100
3,293,717
2,812,773
1,030,182
772,488
4,803,927
26
22
8
6
38
12,713,087
100
Graphical View of
Selected Growth Indicators
Taka in million
64 I Annual Report 2015-16
l Value Added Statement
Graphical View of Selected Growth Indicators l
Annual Report 2015-16 I 65
Independent Auditors’ Report
To The Shareholders of
Beximco Pharmaceuticals Limited
Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2016
Report on the Financial Statements
We have audited the accompanying financial statements of Beximco Pharmaceuticals Limited, which comprises the Statement of
Financial Position as at 30 June 2016, the Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in
Equity and Statement of Cash Flows for the period from 01 January 2015 to 30 June 2016 (18 months) then ended and a summary of
significant accounting policies and other relevant explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International
Financial Reporting Standards (IFRSs), Bangladesh Financial Reporting Standards (BFRSs), and Bangladesh Accounting Standards
(BASs), the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such
internal control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
International Standards on Auditing (ISA) and Bangladesh Standards on Auditing (BSA). Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstance,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 30 June 2016, and of its
financial performance and its cash flows for the period of 18 months then ended in accordance with International Financial Reporting
Standards (IFRSs) and Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994, the Securities and Exchange Rules
1987 and other applicable laws and regulations.
Other matter
Financial Statements of the Company for the year ended 31 December 2015 and period ended 30 June 2016 have separately been
audited by us. Now the Company is required to follow accounting year as July to June as per Finance Act 2015. For this purpose,
separately audited financial statements have been compiled as per directives of The Bangladesh Securities and Exchange Commission
(BSEC).
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 1994 and the Securities and Exchange Rules 1987, we report that:
(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit and made due verification thereof;
(b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our
examination of these books;
(c) the Statement of Financial Position ( Balance Sheet) and Statement of Profit or Loss and other Comprehensive Income (Profit and
Loss Account) dealt with by the report are in agreement with the books of account; and
(d) the expenditure incurred was for the purposes of the company’s business.
Notes
June 30, 2016
December 31, 2014
Amount in Taka
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Intangible Assets
Investment in Shares
4 (a)
3.3 & 5
6 (a)
Current Assets
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances and Deposits
Short Term Investment
Cash and Cash Equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
Shareholders’ Equity
Issued Share Capital
Share Premium
Excess of Issue Price over Face Value of GDRs
Capital Reserve on Merger
Revaluation Surplus
Fair Value Gain on Investment
Retained Earnings
7
8
9
10
11
12
13
14
4(b)
Non-Current Liabilities
Long Term Borrowings-Net off Current Maturity (Secured) 15
16
Liability for Gratuity and WPPF & Welfare Funds
17
Deferred Tax Liability
Current Liabilities and Provisions
Short Term Borrowings (Secured)
Long Term Borrowings-Current Maturity (Secured)
Creditors and Other Payables
Accrued Expenses
Dividend Payable
Income Tax Payable
18 (a)
19
20
21
22
22,620,900,165
22,235,892,802
380,260,529
4,746,834
8,528,007,810
2,770,331,675
614,606,112
1,680,606,796
1,802,304,185
1,439,037,813
221,121,229
20,634,246,854
20,393,278,737
235,208,190
5,759,927
8,366,279,107
2,493,657,338
554,183,898
1,397,498,648
1,223,673,153
2,475,026,831
222,239,239
31,148,907,975
29,000,525,961
23,059,412,409
3,862,442,340
5,269,474,690
1,689,636,958
294,950,950
1,225,100,042
1,295,558
10,716,511,871
5,106,928,058
2,366,006,599
984,198,459
1,756,723,000
2,982,567,508
1,109,644,270
920,388,531
453,828,612
151,086,775
385,507
347,233,813
20,920,185,325
3,678,516,520
5,269,474,690
1,689,636,958
294,950,950
1,299,220,315
2,308,651
8,686,077,241
3,372,593,206
901,709,327
741,522,518
1,729,361,361
4,707,747,430
3,153,121,293
663,838,072
357,710,839
164,283,115
454,720
368,339,391
TOTAL EQUITY AND LIABILITIES
31,148,907,975
29,000,525,961
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on 6 October, 2016 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Dhaka
6 October, 2016
M.J. Abedin & Co.
Chartered Accountants
Dhaka
6 October, 2016
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
66 I Audit Report 2015-16
l Independent Auditors’ Report
Statement of Financial Position l
Audit Report 2015-16 I 67
Beximco Pharmaceuticals Limited
Statement of Profit or Loss and Other Comprehensive Income
For 18 Months Period ended 30th June 2016
Beximco Pharmaceuticals Limited
Statement of Changes in Equity
For 18 Months Period ended January 1, 2015 - June 30, 2016
Amount in Taka
Share
Capital
Share Excess of Issue
Capital
Premium Price over Face Reserve on
Merger
Value of GDRs
Revaluation
Surplus
Fair Value
Gain on
Investment
Amount in Taka
Retained
Earnings
Total
3,678,516,520 5,269,474,690 1,689,636,958 294,950,950 1,299,220,315
2,308,651 8,686,077,241 20,920,185,325
Notes
January 2015 -
June 2016
(18 Months)
January -
June 2016
(6 Months)
January -
December 2015
(12 Months)
January -
December 2014
(12 Months)
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profit Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income / (Expense)
Profit after Tax for the Period
Other Comprehensive Income - Fair Value Gain /
(Loss) on Investment in Listed Shares
Total Comprehensive Income for the Period
Earnings Per Share (EPS) / Adjusted EPS
23
24
27
28
29
30
31
32
6 (c)
33
20,034,502,592
(10,800,317,358)
9,234,185,234
7,068,995,719
(3,835,149,654)
3,233,846,065
12,965,506,873
(6,965,167,704)
6,000,339,169
11,206,885,677
(6,102,694,323)
5,104,191,354
(4,775,931,931)
(689,337,921)
(4,086,594,010)
4,458,253,303
(1,626,871,236)
(240,980,804)
(1,385,890,432)
1,606,974,829
(3,149,060,695)
(448,357,117)
(2,700,703,578)
2,851,278,474
(2,686,014,518)
(398,762,237)
(2,287,252,281)
2,418,176,836
412,658,923
(1,030,182,401)
3,840,729,825
100,980,597
(321,212,167)
1,386,743,259
311,678,326
(708,970,234)
2,453,986,566
521,171,647
(724,314,963)
2,215,033,520
(182,891,896)
(66,035,393)
(116,856,503)
(105,477,787)
3,657,837,929
1,320,707,866
2,337,130,063
2,109,555,733
(709,784,075)
(736,140,227)
26,356,152
2,948,053,854
(326,938,528)
(310,173,315)
(16,765,213)
993,769,338
(382,845,547)
(425,966,912)
43,121,365
1,954,284,516
(581,258,160)
(436,782,844)
(144,475,316)
1,528,297,573
(1,013,093)
2,947,040,761
(661,955)
993,107,383
(351,138)
1,953,933,378
967,032
1,529,264,605
7.63
2.57
5.06
3.96
Number of Shares used to compute EPS
386,244,234
386,244,234
386,244,234
386,244,234
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on 6 October, 2016 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Per our report of even date.
-
183,925,820
Balance as on
January 01, 2015
Total Comprehensive
Income for the period :
Profit for the Period
Other Comprehensive Income/(Loss)
Transactions with
the Shareholders:
Cash Dividend- 2014 & 2015 (Interim)
Stock Dividend for 2014
Adjustment for Depreciation
on Revalued Assets
Adjustment for Deferred Tax
on Revalued Assets
Balance as on
June 30, 2016
Number of Shares
Net Asset Value (NAV) Per Share
Balance as on
January 01, 2014
Total Comprehensive
Income for the period :
Profit for the year
Other Comprehensive Income
Transactions with
the Shareholders:
Cash Dividend for 2013
Stock Dividend for 2013
Adjustment for Depreciation
on Revalued Assets
Adjustment for Deferred Tax
on Revalued Assets
Balance as on
December 31, 2014
Number of Shares
Net Asset Value (NAV) Per Share
-
-
-
-
-
-
-
-
-
175,167,450
For the Year ended January - December 2014
-
-
-
-
-
-
-
-
-
-
-
-
-
- (1,013,093)
- 2,948,053,854 2,948,053,854
-
(1,013,093)
-
-
- (754,095,886)
- (183,925,820)
(754,095,886)
-
-
- (20,402,482)
-
20,402,482
- (53,717,791)
-
-
(53,717,791)
3,862,442,340 5,269,474,690 1,689,636,958 294,950,950 1,225,100,042 1,295,558 10,716,511,871 23,059,412,409
386,244,234
59.70
3,503,349,070 5,269,474,690 1,689,636,958 294,950,950 1,349,578,805 1,341,619 7,667,220,373 19,775,552,465
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 1,528,297,573 1,528,297,573
967,032
-
967,032
-
-
(350,334,907)
-
- (175,167,450)
(350,334,907)
-
-
- (16,061,652)
-
16,061,652
- (34,296,838)
-
-
(34,296,838)
-
-
-
-
-
-
-
-
3,678,516,520 5,269,474,690 1,689,636,958 294,950,950 1,299,220,315 2,308,651 8,686,077,241 20,920,185,325
367,851,652
56.87
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on 6 October, 2016 and signed for and on behalf of the Board :
Dhaka
6 October, 2016
M. J. Abedin & Co.
Chartered Accountants
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
6 October, 2016
Ali Nawaz
Chief Financial Officer
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
68 I Audit Report 2015-16
l Statement of Profit or Loss and Other Comprehensive Income
Statement of Changes in Equity l
Audit Report 2015-16 I 69
Beximco Pharmaceuticals Limited
Statement of Cash Flows
For 18 Months Period ended 30th June 2016
Cash Flows from Operating Activities :
Receipts from Customers and Others
Payments to Suppliers and Employees
Cash Generated from Operations
Interest Paid
Interest Received
Income Tax Paid
Net Cash Generated from Operating Activities
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment
Intangible Assets
Disposal of Property, Plant and Equipment
Dividend Received
Decrease in Short Term Investment
Net Cash Used in Investing Activities
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings- Note 18 (c)
Net Increase/(Decrease) in Short Term Borrowings- Note 18 (c)
Dividend Paid
Net Cash Generated from Financing Activities
Increase/(Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period
January 2015 -
June 2016
(18 Months)
Amount in Taka
January -
December 2014
(12 Months)
19,756,621,890
(15,204,763,705)
4,551,858,185
11,085,037,894
(8,240,584,352)
2,844,453,542
(1,030,182,401)
404,847,333
(757,245,805)
3,169,277,312
(2,975,250,144)
(165,351,713)
9,583,953
1,427,955
1,035,989,018
(2,093,600,931)
55,519,429
(378,148,721)
(754,165,099)
(1,076,794,391)
(1,118,010)
222,239,239
221,121,229
(724,314,963)
489,970,647
(394,128,824)
2,215,980,402
(2,778,797,453)
(56,321,506)
7,615,792
1,427,955
551,356,330
(2,274,718,882)
(340,756,861)
376,855,168
(350,853,554)
(314,755,247)
(373,493,727)
595,732,966
222,239,239
Net Operating Cash Flow Per Share
8.21
6.02
Number of Shares used to compute Net Operating Cash Flow Per Share
386,244,234
367,851,652
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on 6 October, 2016 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
6 October, 2016
Ali Nawaz
Chief Financial Officer
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited
Notes to the Financial Statements
As at and for the period ended 30 June 2016
1. Reporting entity
1.1 About the company
Beximco Pharmaceuticals Limited (BPL/ the Company) was incorporated as a public limited company in Bangladesh in
1976. It commenced its manufacturing operation in 1980. The company was listed with Dhaka Stock Exchange in 1985
and with Chittagong Stock Exchange on its debut in 1995. In 2005, BPL took over Beximco Infusions Ltd., a listed company
of the Beximco Group engaged in manufacturing and marketing of intravenous fluids and got enlisted with the Alternative
Investment Market (AIM) of the London Stock Exchange through issuance of Global Depository Receipts (GDRs). Shares
of the Company are traded in Dhaka and Chittagong Stock Exchanges of Bangladesh and its GDRs in AIM of the London
Stock Exchange.
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 Tongi and Kaliakoir of Gazipur district – vicinities close to the capital city Dhaka.
1.2 Nature of Business
The company is engaged in manufacturing and marketing of generic pharmaceuticals formulation products including life
saving intravenous fluids, Therapeutic Nutrition Products and Active Pharmaceutical Ingredients (APIs). Products of the
company are sold in domestic and international markets. The company also provides contract manufacturing services.
2. Basis of Preparation of Financial Statements
2.1 Basis of Measurement
The financial statements have been prepared on Historical Cost Basis except land, building and plant & machinery being
revalued on 31 December 2008, investment in shares of listed company being valued at year end quoted price and the
cash flow statement being prepared on cash basis.
2.2 Statement of Compliance
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1994, the
Securities & Exchange Rules 1987, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and other relevant
local laws as applicable and in accordance with the International Financial Reporting Standards (IFRSs), and Bangladesh
Financial Reporting Standards (BFRSs).
2.3 Presentation of Financial Statements
The presentation of the financial statements is in accordance with the guidelines provided
by IAS 1: Presentation of Financial Statements.
The financial statements comprises of:
(a) a Statement of Financial Position as at the end of the period ended 30 June 2016 ;
(b) a Statement of Profit or Loss and Other Comprehensive Income for the period 01 January 2015 to 30 June 2016 (18
months);
(c) a Statement of Changes in Equity for the period 01 January 2015 to 30 June 2016 (18 months);
(d) a Statement of Cash Flows for the period 01 January 2015 to 30 June 2016 (18 months); and
(e) notes, comprising summary of significant accounting policies and explanatory information.
2.4 Reporting Period & Comparative Information
The financial statements have been prepared for 18 (eighteen) months (from 1st January 2015 to 30th June 2016) as per
directive of Bangladesh Securities and Exchange Commission (BSEC) to facilitate the adoption of reporting period of July
to June in place of existing reporting period of calendar year (January to December) in compliance to the requirement of
the National Board of Revenue (NBR) to follow uniform financial year.
Therefore, the financial statements for the period of 18 months (01.01.2015 to 30.06.2016) are not entirely comparable
with the comparative of 12 months (01.01.2014 to 31.12.2014).
70 I Audit Report 2015-16
l Statement of Cash Flows
Notes to the Financial Statements l
Audit Report 2015-16 I 71
2.5 Authorisation for issue
The financial statements have been authorised for issue by the Board of Directors 6 October, 2016.
2.6
Functional and Presentation Currency
The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the company’s functional
currency. All financial information presented has been rounded off to the nearest Taka except where indicated otherwise.
2.7 Use of Estimates and Judgments
The preparation of financial statements in conformity with the IFRSs including IASs require management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses, and for contingent assets and liabilities that require disclosure, during and at the
date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Any revision of accounting estimates are recognized in the period in which the estimate is revised and in any future
periods affected.
In particular, the key areas of estimation, uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, inventory valuation,
accrued expenses, others payable and deferred liability for gratuity.
3. Significant Accounting Policies
The accounting principles and policies in respect of material items of financial statements set out below have been applied
consistently to all periods presented in these financial statements.
3.1
Revenue Recognition
In compliance with the requirements of IAS 18: Revenue, revenue receipts from customers against sales is recognized
when products are dispatched to customers, that is, when the significant risk and rewards of ownership have been
transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can
be estimated reliably, and there is no continuing management involvement with the goods.
3.2.4 Retirements and Disposals
On disposal of fixed assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposal is
reflected in the income statement, which is determined with reference to the net book value of the assets and net sales
proceeds.
3.3
Intangible Assets
Intangible assets are stated at cost less provisions for amortization and impairments. Licenses, patents, know-how and
marketing rights acquired are amortized over their estimated useful lives, using the straight line basis, from the time
they are available for use. The cost of acquiring and developing computer software for internal use and internet sites for
external use are capitalized as intangible fixed assets where the software or site supports a significant business system
and the expenditure leads to the creation of a durable asset. Also, the research and development expenditures that are
definite to yield benefit to the company are capitalized.
3.4 Leased Assets
In compliance with the IAS 17: Leases, cost of assets acquired under finance lease along with related obligation has
been accounted for as assets and liabilities respectively of the company, and the interest element has been charged as
expenses. Lease payments made under finance leases are apportioned between the finance expenses and the reduction
of the outstanding liability.
3.5
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
3.5.1 Financial assets
Financial assets of the company include cash and cash equivalents, accounts receivable and other receivables. The
company initially recognizes receivable on the date they are originated. All others financial assets are recognized initially
on the date at which the company becomes a party to the contractual provisions of the transaction. The company
derecognizes a financial asset when, and only when the contractual rights or probabilities of receiving the cash flows
from the asset expire or it transfer the rights to receive the contractual cash flows on the financial asset in a transaction
in which substantially all the risk and rewards of ownership of the financial asset are transferred.
Revenue from sales is exclusive of VAT.
3.5.1(a) Accounts Receivable
Cash dividend income on investment in shares is recognized on approval of said dividend in the annual general meeting.
Stock dividend income (Bonus Shares) is not considered as revenue.
3.2
Property, Plant and Equipment
3.2.1 Recognition and Measurement
This has been stated at cost or revalued amount less accumulated depreciation in compliance with the requirements of
IAS 16: Property, Plant and Equipment. The cost of acquisition of an asset comprises its purchase price and any directly
attributable cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties and
non-refundable taxes.
3.2.2 Maintenance Activities
The company incurs maintenance costs for all its major items of property, plant and equipment. Repair and maintenance
costs are charged as expenses when incurred.
3.2.3 Depreciation
Depreciation is provided to amortise the cost of the assets after commissioning, over the period of their expected useful
lives, in accordance with the provisions of IAS 16: Property, Plant and Equipment. Depreciation is provided at the following
rates on reducing balance basis:
Building and Other Construction
Plant and Machinery
Furniture & Fixtures
Transport & Vehicle
Office Equipment
2 %- 10%
5% -15%
10%
20%
10% -15%
Accounts receivable are created at original invoice amount less any provisions for doubtful debts. Provisions are made
where there is evidence of a risk of non-payment, taking into account aging, previous experience and general economic
conditions. When an accounts receivable is determined to be uncollected it is written off, firstly against any provision
available and then to the profit and loss account. Subsequent recoveries of amounts previously provided for are credited
to the profit and loss account.
3.5.1(b) Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, in transit and with banks on current and deposit accounts which are
held and available for use by the company without any restriction. There is insignificant risk of change in value of the
same.
3.5.1(c) Investment in Shares
Investment in shares of listed company is valued at a price quoted in the stock exchange at year end. Investment in
other shares is valued at cost.
3.5.2
3.6
Financial Liability
Financial liabilities are recognized initially on the transaction date at which the company becomes a party to the
contractual provisions of the liability. The company derecognizes a financial liability when its contractual obligations are
discharged or cancelled or expire.
Finance liabilities include payable for expenses, liability for capital expenditure and other current liabilities.
Impairment
(a) Financial Assets
Accounts receivable and other receivables are assessed at each reporting date to determine whether there is any
objective evidence of impairment. Financial assets are impaired if objective evidence indicates that a loss event has
occurred after the initial recognition of the asset and that the loss event had a negative effects on the estimated future
cash flows of that asset, that can be estimated reliably. Objective evidence that financial assets are impaired can include
default or delinquency by a debtor, indications that a debtor or issuer will enter bankruptcy etc.
72 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 73
(b) Non-Financial Assets
An asset is impaired when its carrying amount exceeds its recoverable amount. The company assesses at each reporting
date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates
the recoverable amount of the asset. The recoverable amount of an asset is the higher of its fair value less costs to sell
and its value in use. Carrying amount of the assets is reduced to its recoverable amount by recognizing an impairment
loss if, and only if, the recoverable amount of the asset is less than its carrying amount. Impairment loss is recognized
immediately in profit or loss, unless the asset is carried at revalued amount. Any impairment loss of a revalued asset
shall be treated as a revaluation decrease.
3.7
3.8
Inventories
Inventories are carried at the lower of cost and net realizable value as prescribed by IAS 2: Inventories. 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 realizable value is based on estimated
selling price less any further costs expected to be incurred to make the sale.
Provisions
A provision is recognized in the statement of financial position when the company has a legal or constructive obligation
as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. Provision is ordinarily measured at the best estimate of
the expenditure required to settle the present obligation at the date of statement of financial position. Where the effect of
time value of money is material, the amount of provision is measured at the present value of the expenditures expected
to be required to settle the obligation.
3.9
Income Tax Expense
Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the Statement of
Comprehensive Income and accounted for in accordance with the requirements of IAS 12: Income Tax.
Current Tax
Current tax is the expected tax payable on the taxable income for the period, and any adjustment to tax payable in
respect of previous years. The company qualifies as a “Publicly Traded Company”; hence the applicable Tax Rate is
25%.
Deferred Tax
The company has recognized deferred tax using balance sheet method in compliance with the provisions of IAS 12:
Income Taxes. The company’s policy of recognition of deferred tax assets/ liabilities is based on temporary differences
(Taxable or deductible) between the carrying amount (Book value) of assets and liabilities for financial reporting purpose
and its tax base, and accordingly, deferred tax income/expenses has been considered to determine net profit after tax
and earnings per shares (EPS).
A deferred tax asset is recognized to the extent that it is probable that future taxable profit will be available, against
which temporary differences can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to
the extent that it is no longer probable that the related tax benefit will be realized.
Interest Income
Interest income is recognized on accrual basis.
Borrowing Cost
Borrowing costs are recognized as expenses in the period in which they are incurred unless capitalization of such is
allowed under IAS 23: Borrowing Costs.
Employee Benefits
The company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees.
The eligibility is determined according to the terms and conditions set forth in the respective deeds.
The company has accounted for and disclosed employee benefits in compliance with the provisions of IAS 19: Employee
Benefits.
The cost of employee benefits is charged off as revenue expenditure in the period to which the contributions relate.
The company’s employee benefits include the following:
3.10
3.11
3.12
(a) Defined Contribution Plan (Provident Fund)
The company has a registered provident fund scheme (Defined Contribution Plan) for employees of the company eligible
to be members of the fund in accordance with the rules of the provident fund constituted under an irrevocable trust. All
permanent employees contribute 10% of their basic salary to the provident fund and the company also makes equal
contribution.
The company recognizes contribution to defined contribution plan as an expense when an employee has rendered
services in exchange for such contribution. The legal and constructive obligation is limited to the amount it agrees to
contribute to the fund.
(b) Defined Benefit Plan (Gratuity)
This represents unfunded gratuity scheme for its permanent employees. Employees are entitled to gratuity benefit after
completion of minimum five years of service in the company.
Though no valuation was done to quantify actuarial liabilities as per the IAS 19: Employee Benefits, such valuation in not
likely to yield a result significantly different from the current provision.
(c) Short-term employee benefits
Short-term employee benefits include salaries, bonuses, leave encashment, etc. Obligations for such benefits are
measured on an undiscounted basis and are expensed as the related service is provided.
(d) Contribution to Workers’ Profit Participation and Welfare Funds
This represents 5% of net profit before tax contributed by the company as per provisions of the Bangladesh Labor
(amendment) Act 2013 and is payable to workers as defined in the said law.
(e) Insurance Scheme
Employees of the company are covered under insurance schemes.
3.13
3.14
Share Premium
The Share Premium shall be utilized in accordance with the provisions of the Companies Act, 1994 and as per direction
of the Securities and Exchange Commission in this respect.
Proposed Dividend
The amount of proposed dividend is not accounted for but disclosed in the notes to the accounts in accordance with the
requirements of the International Accounting Standard (IAS) 1: Presentation of Financial Statements. Also the proposed
dividend is not considered as liability in accordance with the requirement of International Accounting Standard (IAS) 10:
Events After The Reporting Period, because no obligation exists at the time of approval of accounts and recommendation
of dividend by the board of Directors. The Board of Directors in its meeting held on 20 April 2016 while considering the
audited accounts for the year ended on 31st December 2015 recommended 10% cash and 5% stock dividend subject
to approval of the shareholders in the Annual General Meeting scheduled on 4 June 2016. Subsequent to that, the
Bangladesh Securities and Exchange Commission issued directive to hold Annual General Meeting with 18 months
Accounts for first time adoption of the changes in the Accounting Year as required by the Finance Act 2015. Accordingly
the Annual General Meeting of the Company was deferred and the cash dividend proposed was paid to the shareholders
as Interim Dividend. Therefore, the 10% cash dividend which was already paid has been accounted for in the accounts
being reported. The 5% stock dividend and 5% final cash dividend as recommended by the board in its meeting held on
October 6, 2016 while approving the 18 months audited accounts for the period ended on June 30, 2016 has not been
accounted for as per policy.
3.15
Earnings per Share (EPS)
This has been calculated in compliance with the requirements of IAS 33: Earnings Per Share by dividing the basic
earnings by the weighted average number of ordinary shares outstanding during the period.
74 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 75
Current Period (January 2015 to June 2016)
The Bonus Shares issued during the year 2014 were treated as if they always had been in issue. Hence, in computing
the Basic EPS of Current Period (January 2015 to June 2016), the total number of shares including the said bonus shares
has been considered as the Weighted Average Number of Shares outstanding during the Current Period (January 2015
to June 2016).
Earlier Year (2014)
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 (2014), and
accordingly, in calculating the adjusted EPS of 2014, the total number of shares including the subsequent bonus issued
in 2015 has been considered as the Weighted Average number of Shares outstanding during the year 2014.
The basis of computation of number of shares as stated above is in line with the provisions of IAS 33: Earning 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.
Diluted Earnings per Share
No diluted EPS is required to be calculated for the period as there was no scope for dilution during the period under
review.
3.16
Foreign Currency Transactions
Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date.
4 (a) Property, Plant and Equipment
As on June 30, 2016
Particulars
Cost
At January 01, 2015
Additions- January 2015 to
June 2016
Transferred in & Capitalized
Disposal during the period
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Amount in Taka
3,343,741,442 6,410,090,320 10,573,115,701
197,001,369 596,845,504 390,013,667 21,510,808,003
-
-
-
154,933,066
147,151,810
-
499,981,926
257,977,765
(7,057,699)
37,334,604 107,098,489 118,553,280
3,298,860
(9,716,371)
254,013
(16,946,545)
(3,931,886)
-
917,901,365
408,682,448
(37,652,501)
Cost at June 30, 2016
3,343,741,442 6,712,175,196 11,324,017,693
217,643,441 700,012,107 502,149,436 22,799,739,315
Accumulated Depreciation
At January 01, 2015
Depreciation Charged- January
2015 to June 2016
Adjustment for Assets disposed off
Accumulated Depreciation
at June 30, 2016
Net Book Value
June 30, 2016
- 1,216,063,103
3,582,516,866
79,383,211 292,067,629 255,418,950 5,425,449,759
-
-
241,207,131
-
735,361,153
(6,520,549)
18,344,246 92,584,435
(2,531,542)
(11,988,652)
36,711,350 1,124,208,315
(29,224,737)
(8,183,994)
- 1,457,270,234
4,311,357,470
85,738,805 382,120,522 283,946,306 6,520,433,337
3,343,741,442 5,254,904,962
7,012,660,223
131,904,636 317,891,585 218,203,130 16,279,305,978
The monetary assets and liabilities, if any, denominated in foreign currencies at the financial position date are translated
at the applicable rates of exchanges ruling at that date. Exchange differences are charged off as revenue expenditure
in compliance with the provisions of IAS 21: The Effects of Changes in Foreign Exchange Rates.
Capital Work in Progress
Carrying Value as on June 30, 2016
5,956,586,824
22,235,892,802
3.17
3.18
Statement of Cash Flows
The Statement of Cash Flow has been prepared in accordance with the requirements of IAS 7: Statement of Cash Flows.
The cash generated from operating activities has been reported using the Direct Method as prescribed by the Securities
and Exchange Rules, 1987 and as the benchmark treatment of IAS 7, whereby major classes of gross cash receipts and
gross cash payments from operating activities are disclosed.
Events after Reporting Period
Events after the reporting period that provide additional information about the company’s position at the date of
Statement of Financial Position or those that indicate that the going concern assumption is not appropriate are reflected
in the financial statements. Events after reporting period that are not adjusting events are disclosed in the notes when
material.
Assets include leasehold assets of Tk. 1,277,737,554 at cost and Tk.1,053,077,850 at carrying value.
As on December 31, 2014
Particulars
Cost
At January 01, 2014
Addition During the Year
Transferred in & Capitalized
Disposal during the year
As on 31 December 2014
Accumulated Depreciation
At January 01, 2014
Depreciation for the year
Adjustment for Assets disposed off
As on 31 December, 2014
Net Book Value
December 31, 2014
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
3,302,882,482
40,858,960
-
-
3,343,741,442
6,370,758,420
39,331,900
-
-
6,410,090,320
10,034,644,242
111,420,014
427,051,445
-
10,573,115,701
173,333,992
24,240,377
-
(573,000)
197,001,369
548,077,240
59,392,132
-
(10,623,868)
596,845,504
358,363,316
31,650,351
-
-
390,013,667
20,788,059,692
306,893,734
427,051,445
(11,196,868)
21,510,808,003
-
-
-
-
1,052,546,636
163,516,467
-
1,216,063,103
3,090,128,096
492,388,770
-
3,582,516,866
69,430,902
10,375,309
(423,000)
79,383,211
237,436,147
61,346,435
(6,714,953)
292,067,629
237,273,060
18,145,890
-
255,418,950
4,686,814,841
745,772,871
(7,137,953)
5,425,449,759
3,343,741,442
5,194,027,217
6,990,598,835
117,618,158
304,777,875
134,594,717
16,085,358,244
Capital Work in Progress
Carrying Value as on December 31, 2014
4,307,920,493
20,393,278,737
76 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 77
Capital Work in Progress is arrived at as follows :
Opening Balance at beginning of the period
Addition- January 2015 to June 2016
Transferred & Capitalized
Building and Other Constructions
Plant & Machinery
Furniture & Fixture
Office Equipment
Amount in Taka
30 June, 2016
31 December, 2014
4,307,920,493
2,057,348,779
6,365,269,272
(408,682,448)
(147,151,810)
(257,977,765)
(254,013)
(3,298,860)
2,263,068,219
2,471,903,719
4,734,971,938
(427,051,445)
-
(427,051,445)
-
-
Closing balance at end of period
5,956,586,824
4,307,920,493
4 (b). Revaluation Surplus
S.F. Ahmed & Co, Chartered Accountants and Valuers revalued the land, building and plant & machinery of the Company as
of 31 December 2008, following “Current cost method”. Such revaluation resulted into a revaluation surplus aggregating Tk.
1,711,174,747. Current balance is arrived at as follows:
Opening Balance at beginning of the period
Adjustment for depreciation on revalued assets
Adjustment for Deferred Tax on revalued assets
5.
Intangible Assets
This consists of as follows
1,299,220,315
(20,402,482)
(53,717,791)
1,225,100,042
1,349,578,805
(16,061,652)
(34,296,838)
1,299,220,315
Product development, Licensing and
Marketing Rights
ERP Project
Other Software
Balance
01.01.2015
Addition
(Jan 2015 - Jun 2016)
Amortized
(Jan 2015 - Jun 2016)
Balance
June 30, 2016
230,551,508
-
4,656,682
235,208,190
74,789,570
90,562,143
-
165,351,713
(16,713,018)
-
(3,586,356)
(20,299,374)
288,628,060
90,562,143
1,070,326
380,260,529
6. Investment in Shares
(a) Investment Details:
(i)) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
30 June, 2016
31 December, 2014
3,177,384
1,569,450
4,746,834
4,190,477
1,569,450
5,759,927
This is arrived at as follows:
Bangladesh
Export Import Co. Ltd.
Central Depository
Bangladesh Ltd.
Investment as on January 01, 2015
Fair value gain/(Loss) on investment
Investment as on June 30, 2016
4,190,477
(1,013,093)
Tk. 3,177,384
(b) Number of Shares:
As on January 01, 2015
Stock Dividend for 2014
As on June 30, 2016
115,123
17,268
132,391
1,569,450
-
1,569,450
571,182
-
571,182
(c) Fair Value Gain/(Loss) on Investment
Fair market value of 132,391 shares of Bangladesh Export Import Co. Ltd.
Less Investment at beginning of the period
Fair Value Gain / (Loss)
3,177,384
4,190,477
(1,013,093)
(d) The shares of Bangladesh Export Import Co. Ltd. are listed in Dhaka and Chittagong Stock Exchanges. The market value of
each share of Bangladesh Export Import Co. Ltd. on last working day of the period was Tk. 24.00 in Dhaka Stock Exchange Ltd.
and Chittagong Stock Exchange Ltd. Shares of CDBL are not traded.
7.
Inventories
Amount in Taka
This consists of as follows :
30 June, 2016
31 December, 2014
Finished Goods
Work in Process
Raw Materials
Packing Materials
Laboratory Chemicals
Physician Samples
Materials in Transit
8.
Spares & Supplies
This consists of as follows :
Spares & Accessories
Stock of Stationery
Literature & Promotional Materials
9.
Accounts Receivable
639,923,877
194,155,965
792,484,516
459,631,224
338,991
127,674,561
556,122,541
2,770,331,675
633,692,189
171,815,679
637,080,994
424,461,374
550,984
149,875,483
476,180,635
2,493,657,338
495,625,730
11,624,684
107,355,698
614,606,112
399,537,644
11,284,736
143,361,518
554,183,898
This includes receivable of Tk. 107,075,699 equivalent to US$ 1,372,765 as on 30 June 2016 (on 31-12-2014 Tk. 136,834,694
equivalent to US $ 1,763,334) against export sales.
This also includes Tk. 1,430,821,670 due from I & I Services Ltd., who provides distribution service to the Company and a
“Related Party”. The maximum amount due from that company during the period was Tk. 1,430,821,670 on 30 June, 2016.
The receivables on account of Export sales are fully secured against Letter of Credit while the others are unsecured but
considered good.
No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally
or jointly with any other person.
78 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 79
10.
Loans, Advances and Deposits
This is unsecured, considered good and consists of as follows :
Clearing & Forwarding
VAT
Claims Receivable
Security Deposit & Earnest Money
Lease Deposit
Capital Expenditure/ Project
Expenses
Bank Guarantee Margin
Advance against Salary
Rent Advance
Motor Cycle
Raw & Packing Material
Prepaid Expenses
Overseas Liaison Office
Others
Amount in Taka
30 June, 2016
31 December, 2014
83,654,786
273,720,987
20,242,657
26,407,411
28,691,017
97,081,087
198,889,697
2,951,066
88,981,864
19,535,002
157,814,961
395,386,302
322,417,705
19,067,068
67,462,575
1,802,304,185
54,354,123
217,516,529
14,620,213
27,652,694
21,812,942
50,029,753
132,711,063
1,257,096
55,699,183
9,716,674
124,010,046
422,209,729
21,116,922
15,032,617
55,933,569
1,223,673,153
(a) The maximum amount due from the employees during the period was Tk. 89,024,168 on 31 May, 2016.
(b) No amount was due from 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 from any related party.
(d)
Prepaid expense includes Tk. 302,987,514 for Insurance premium paid to German Export Credit Agency Euler Hermes
Aktiengesellschaft, Hamburg for gurantee Insurance premium which is an integral part of the overseas loan financing
agreement with BHF-Bank Aktiengesellshaft, Frankfurt, Germany. Part of the premium related to the period of construction of
the project shall be capitalized while the rest shall be charged to expenses over the tenure of the loan.
11. Short Term Investment
This represents the Company’s temporary investment with Bangladesh Export Import Company Limited, carrying interest 1% above
bank interest rate. This investment is returnable as and when required by the Company.
12. Cash and Cash Equivalents
This consists of as follows :
(a) Cash in Hand (including Imprest Cash)
(b) Cash at Bank :
(i) Current & FC Account
(ii) FDR Account
Amount in Taka
30 June, 2016
31 December, 2014
2,812,238
3,218,618
186,824,492
31,484,499
221,121,229
190,573,819
28,446,802
222,239,239
13.
Issued Share Capital
This represents :
A. Authorized :
500,000,000 Ordinary Shares of Tk. 10/- each
41,000,000 Fully Convertible, 5% Dividend, Preference Shares of Tk. 100/- each
B. Issued, Subscribed and Paid-up :
51,775,750 shares of Tk. 10/- each fully paid-up in cash
297,226,087 Bonus Shares (2014: 278,833,505) of Tk. 10/- each
5,951,250 Shares of Tk. 10/- each issued in Exchange of
Shares of Beximco Infusions Ltd.
31,291,147 Shares issued on conversion of Preference Shares
Amount in Taka
30 June, 2016
31 December, 2014
5,000,000,000
4,100,000,000
9,100,000,000
5,000,000,000
4,100,000,000
9,100,000,000
517,757,500
2,972,260,870
517,757,500
2,788,335,050
59,512,500
312,911,470
3,862,442,340
59,512,500
312,911,470
3,678,516,520
The movement of Ordinary Shares during the Period ended June 30, 2016 is as follows :
Number of Shares
Amount in Taka
Balance as on January 01, 2015
Bonus Shares issued during the period (for 2014)
Balance as on June 30, 2016
367,851,652
18,392,582
386,244,234
3,678,516,520
183,925,820
3,862,442,340
C. Composition of Shareholding of Ordinary Shares:
30 June, 2016
31 December, 2014
No. of shares % of Share Capital
No. of shares % of Share Capital
Sponsors:
A S F Rahman
Salman F Rahman
Associates and Other Directors
Foreign Investors
ICB & Other Investors Account
General Public & Institutions
7,843,194
7,861,555
35,218,844
140,338,026
62,590,222
132,392,393
386,244,234
2.03
2.04
9.12
36.33
16.20
34.28
100
7,469,709
7,487,196
33,414,339
93,038,941
55,940,961
170,500,506
367,851,652
2.03
2.04
9.08
25.29
15.21
46.35
100
D. Distribution Schedule of Ordinary Shares:
Range of Holdings
In number of shares
No. of Shareholders
30 June,
31 Dec,
2014
2016
% of Shareholders
30 June,
31 Dec,
2014
2016
Number of Shares
30 June,
2016
31 Dece,
2014
% of Share Capital
30 June,
31 Dec,
2014
2016
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
50,793
14,375
1,184
613
201
86
82
150
167
28
65,544 75.05%
20,786 21.24%
1.75%
1,753
0.91%
930
0.30%
281
0.13%
128
0.12%
102
0.22%
165
0.25%
191
0.04%
33
2.24%
8,240,906
72.90%
8.41%
30,918,582
23.12%
3.41%
12,555,227
1.95%
3.56%
13,111,006
1.03%
1.88%
6,909,593
0.31%
1.22%
4,498,146
0.14%
1.27%
4,660,402
0.11%
12,172,549
3.31%
0.19%
0.21%
50,601,331 12.36% 13.76%
0.04% 271,391,292 224,183,910 70.26% 60.94%
6,768,689
20,930,046
8,441,882
8,685,273
5,007,247
3,010,665
3,756,886
10,505,997
47,746,257
1.75%
5.42%
2.19%
2.25%
1.30%
0.78%
0.97%
2.72%
80 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 81
Total
67,679
89,913
100%
100%
386,244,234 367,851,652
100%
100%
E. Market Price of Ordinary Shares :
The shares are listed with Dhaka, Chittagong and AIM of London Stock Exchanges. On 30.06.2016 each share was quoted at
Tk. 83.50 (on 31.12.2014 Tk. 58.70) in Dhaka Stock Exchange Ltd.; Tk. 83.00 (on 31.12.2014 Tk. 59.10) in Chittagong Stock
Exchange Ltd.; and GBP 0.2937 in London Stock Exchange (on 31.12.2014 GBP 0.1800).
F. Option on unissued Ordinary Shares :
There was no option on unissued shares as on 30.06.2016.
14. Excess of Issue Price over Face Value of GDRs
This represents the issue price of 28,175,750 GDRs at Tk. 2,244,080,670 net off face value of underlying shares against GDRs
and GDR issue expenses.
15.
Long Term Borrowings - Net off Current Maturity (Secured)
This arrived at as follows :
(a) Project Loan - Local Banks
(b) Project Loan - BHF Bank, Germany
(c) Obligation Under Finance Leases
(d) AB Bank
(a) Project Loan - Local Banks
Amount in Taka
30 June, 2016 31 December, 2014
-
469,408,422
412,250,396
1,484,347,781
2,366,006,599
608,901,223
-
292,808,104
-
901,709,327
This loan was sanctioned under the consortium arrangement of Janata Bank Ltd., Sonali Bank Ltd., Agrani Bank Ltd.,
Rupali Bank Ltd. and United Commercial Bank Ltd. for the US FDA standard oral solid dosage facility of the company.
Janata Bank is the lead bank to the consortium.
This Loan is secured against :
(i) First (registered mortgage) charge on paripassu basis with the participating banks on 1,113 decimals of land at Kathaldia,
Aushpara, Tongi of Gazipur along with the building and other constructions thereon; and
(ii) First paripassu charge by way of hypothecation on all assets of the company excepting the machineries and equipments
financed / to be financed by BHF Bank, Germany.
(iii) This Loan, carrying interest at 11.5% to 13% per annum, is repayable in quarterly installments ending by 2017.
(b) Project Loan - BHF Bank, Germany
This represents part of the foreign currency loan of US $ 51.559 million sanctioned by BHF-Bank Aktiengesellshaft,
Frankfurt, Germany to partially finance the machinery and equipment to be procured for expansion and diversification
project being implemented by the company.
The loan has exclusive first charge by way of hypothecation against the machinery and equipment being procured under
the finance. The loan carries interest @ 6 month’s USD LIBOR plus 2.25% per annum. The lender will receive commitment
fee @ 0.50% on the undisbursed portion of the loan.
(c ) Obligation Under Finance Leases
Gross Finance Lease - minimum lease Liability:
Within one year
After one year
Total
Less future finance charges on finance lease liability
Present Value of Finance Lease liability
This consists of as follows:
Within one year
Within two to five years
Total Present Value of Finance Lease liability
Amount in Taka
30 June, 2016
31 December, 2014
242,977,536
513,274,630
756,252,166
186,760,624
429,486,607
616,247,231
(186,621,695)
569,630,471
(195,948,111)
420,299,120
157,380,075
412,250,396
569,630,471
127,491,016
292,808,104
420,299,120
16.
Liability for Gratuity and WPPF & Welfare Funds
Liability for gratuity is the amount payable to the permanent employees at the time of separation from the company. The liability
for WPPF refers to the undistributed portion of Workers’ Profit Participation and Welfare Fund lying with the company.
(a) Gratuity Payable
Opening Balance at beginning of the period
Provisions during the period
Paid during the period
Closing balance at end of period
(b) Workers Profit Participation and Welfare Fund
17. Deferred Tax Liability
This arrived at as follows :
Opening Balance at beginning of the period
Addition during the period:
Deferred Tax on Assets (cost basis)-Note : 32
Deferred Tax on revalued amount
Closing balance at end of period
Amount in Taka
30 June, 2016
31 December, 2014
337,652,786
128,134,755
465,787,541
(20,560,620)
445,226,921
284,163,669
66,915,861
351,079,530
(13,426,744)
337,652,786
538,971,538
984,198,459
403,869,732
741,522,518
1,729,361,361
1,550,589,207
(26,356,152)
53,717,791
1,756,723,000
144,475,316
34,296,838
1,729,361,361
82 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 83
18.
(a) Short Term Borrowings (Secured)
This consists of :
Janata Bank Ltd. - Cash Credit-Hypothecation Loan
AB Bank, Principal Branch
Amount in Taka
30 June, 2016
31 December, 2014
1,109,644,270
-
1,109,644,270
1,487,792,991
1,665,328,302
3,153,121,293
(b) Short Term Borrowings from AB Bank, Principal Branch as mentioned above, has subsequently been converted as Long
Term loan payable in 18 quarterly installments commencing from September 2016.
(c) Conversion of Short term loan into long term being a non-cash event, the net Increase/ Decrease in the Short/Long Term
borrowings as reported in the cash flow statement does not include such conversion.
19.
Long Term Borrowings-Current Maturity (Secured)
This consists of as follows and is payable within next twelve months from the Balance Sheet date :
(a) Project Loan - Local Banks
(b) Project Loan - BHF Bank, Germany
(c) Obligation Under Finance Leases
(d) AB Bank
20. Creditors and Other Payables
This consists of :
Goods & Services
Provident Fund
Advance Against Export
Others
21. Accrued Expenses
This is unsecured, falling due within one year and consists of as follows :
For Expenses
Workers’ Profit Participation and Welfare Funds - current period expense
22.
Income Tax Payable
This is arrived at as follows :
Opening Balance
Provision for the period
Short/(Excess) Provision for previous years
AIT & Treasury deposits during the period
444,621,118
41,054,236
157,380,075
277,333,102
920,388,531
536,347,056
-
127,491,016
-
663,838,072
144,676,791
248,809,046
9,097,700
51,245,075
453,828,612
202,020,182
124,323,489
3,618,784
27,748,384
357,710,839
85,051,382
66,035,393
151,086,775
60,155,328
104,127,787
164,283,115
368,339,391
766,053,375
(29,913,148)
1,104,479,618
(757,245,805)
347,233,813
325,685,371
421,487,672
15,295,172
762,468,215
(394,128,824)
368,339,391
23. Net Sales Revenue
This consists of as follows :
Local Sales
Export*
Amount in Taka
January 2015-
June 2016
(18 Months)
January-June
2016
(6 Months)
January - Dec
2015
(12 Months)
January - Dec
2014
(12 Months)
18,806,149,764 6,682,982,389 12,123,167,375
1,228,352,828
842,339,498
386,013,330
20,034,502,592 7,068,995,719 12,965,506,873
10,706,417,075
500,468,602
11,206,885,677
*Export equivalent US$
$15,809,891
$4,948,889
$10,861,002
$6,473,721
Sales represents:
Product Category
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment,
Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution,
Injectable and Inhaler
Diet Care Products
Active Pharmaceutical Ingredients
Liquid Nitrogen
24. Cost of Goods Sold
This is made-up as follows :
Quantity
Unit
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January -
December 2015
(12 Months)
January -
December 2014
(12 Months)
Million pcs.
5,308.62
1,913.93
3,394.69
2,998.47
Million pcs.
Pcs
Kg
Liter
121.46
16,069
282,789
725,260
45.80
10,157
113,953
241,505
75.66
5,912
168,836
483,755
70.72
-
177,354
475,012
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January -
December 2015
(12 Months)
January -
December 2014
(12 Months)
Amount in Taka
Work-in-Process (Opening)
Materials Consumed (Note: 25)
Factory Overhead (Note: 26)
Total Manufacturing Cost
Work-in-Process (Closing)
Cost of Goods Manufactured
Finished Goods (Opening)
Finished Goods available
Cost of Physician Sample transferred to
Sample Stock
Finished Goods (Closing)
171,815,679
8,002,141,393
3,005,938,728
11,179,895,800
(194,155,965)
10,985,739,835
633,692,189
11,619,432,024
156,136,258
2,822,057,040
1,044,381,707
4,022,575,005
(194,155,965)
3,828,419,040
696,097,273
4,524,516,313
171,815,679
5,180,084,353
1,961,557,021
7,313,457,053
(156,136,258)
7,157,320,795
633,692,189
7,791,012,984
204,755,943
4,498,531,078
1,735,116,121
6,438,403,142
(171,815,679)
6,266,587,463
644,005,694
6,910,593,157
(179,190,789)
(639,923,877)
(49,442,782)
(639,923,877)
(129,748,007)
(696,097,273)
(174,206,645)
(633,692,189)
10,800,317,358
3,835,149,654
6,965,167,704
6,102,694,323
84 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 85
Item wise quantity and value of Finished Goods Stock are as follows :
Stock as January 01, 2015
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution, Injectable and Inhaler
Active Pharmaceutical Ingredients
Unit
Million pcs.
Million pcs.
Kg
Quantity
426.64
Value (Tk.)
389,211,055
6.78
2,450
236,895,019
7,586,115
633,692,189
Stock as June 30, 2016
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution, Injectable and Inhaler
Active Pharmaceutical Ingredients
Diet Care Products
Million pcs.
370.24
351,741,050
Million pcs.
Kg
Pcs
6.85
7,029
30,535
257,318,388
18,650,439
12,214,000
639,923,877
25. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
26. Factory Overhead
January 2015-
June 2016
(18 Months)
1,062,093,352
8,192,502,772
(1,252,454,731)
8,002,141,393
January-
June 2016
(6 Months)
January -
December 2015
(12 Months)
1,374,684,313
2,699,827,458
(1,252,454,731)
2,822,057,040
1,062,093,352
5,492,675,314
(1,374,684,313)
5,180,084,353
Amount in Taka
January -
December 2014
(12 Months)
1,228,275,639
4,332,348,791
(1,062,093,352)
4,498,531,078
This consists of as follows :
Salary & Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Advertisement
Registration & Renewal
Travelling & Conveyance
Entertainment
Research and Development
Printing & Stationery
Telephone, Internet & Postage
Toll Expense / (Income)
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Other Expenses
923,333,723
247,729,698
22,309,704
4,240,806
51,116
18,495,348
10,070,405
2,128,395
261,058,042
23,889,555
11,335,263
255,228,012
133,536,151
8,900,920
44,128,992
1,017,408,525
22,094,073
3,005,938,728
328,819,767
87,928,385
9,166,206
2,085,977
25,558
6,208,730
3,876,566
742,403
83,158,366
7,742,008
3,506,239
91,229,382
51,034,264
1,072,225
14,296,005
345,415,972
8,073,654
1,044,381,707
594,513,956
159,801,313
13,143,498
2,154,829
25,558
12,286,618
6,193,839
1,385,992
177,899,676
16,147,547
7,829,024
163,998,630
82,501,887
7,828,695
29,832,987
671,992,553
14,020,419
1,961,557,021
500,724,043
104,500,367
12,514,466
2,021,257
60,222
10,631,435
5,242,079
1,231,794
146,720,695
13,914,877
5,787,905
121,321,879
75,773,777
5,046,880
46,683,540
674,924,448
8,016,457
1,735,116,121
(a) Salary and allowances include an amount of Tk.17,859,896 being Company’s Contribution to provident fund for the period
January 2015 to June 2016.
(b) The value of imported stores and spares consumed during January 2015 to June 2016 Tk.138,743,197 is included in repairs
& maintenance. This also includes maintenance of office, premises, vehicles, building, machinery, equipment and other
infrastructures.
(c) Other expenses does not include any item exceeding 1% of total revenue.
86 I Audit Report 2015-16
l Notes to the Financial Statements
27. Administrative Expenses
This consists of as follows :
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January -
December 2015
(12 Months)
January -
December 2014
(12 Months)
Amount in Taka
Salary & Allowances
Rent
Repairs and Maintenance
Registration & Renewals
Travelling & Conveyance
Entertainment
Printing & Stationery
Audit Fee
Telephone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
Company Secretarial, Regulatory-
Fee and AGM Expense
Advertisement
Training & Conference
Depreciation
Remuneration to Independent Directors
Other Expenses
342,562,459
15,223,160
55,605,625
5,135,570
34,405,438
7,288,932
6,315,776
2,100,000
7,915,115
16,274,881
9,730,579
53,230,398
180,296
14,694,117
39,347,290
580,000
78,748,285
689,337,921
120,449,116
4,984,300
18,551,667
1,764,573
11,831,723
2,377,334
2,311,214
700,000
2,580,651
5,404,326
3,825,488
14,036,401
107,606
4,791,483
13,358,628
260,000
33,646,294
240,980,804
222,113,343
10,238,860
37,053,958
3,370,997
22,573,715
4,911,598
4,004,562
1,400,000
5,334,464
10,870,555
5,905,091
39,193,997
72,690
9,902,634
25,988,662
320,000
45,101,991
448,357,117
193,314,218
10,066,000
30,338,920
3,061,050
19,583,051
4,063,944
3,443,447
1,300,000
4,889,150
10,576,720
5,181,653
39,532,229
58,138
7,467,133
26,102,050
140,000
39,644,534
398,762,237
(a) Salary and allowances include an amount of Tk. 8,489,904 being Company’s Contribution to provident fund for the period
January 2015 to June 2016.
.
(b) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
(C) Remuneration is paid to the Independent Directors for attending Board and Audit Committee Meetings.
28. Selling, Marketing and Distribution Expenses
This consists of as follows :
Salary & Allowances
Rent
Repairs and Maintenance
Travelling & Conveyance
Entertainment
Printing & Stationery
Telephone, Internet & Postage
Electricity, Gas & Water
Market Research & New Products
Training & Conference
Insurance Premium
Sample Expense
Promotional Expenses
Literature/News Letter
Registration & Renewals
Export Insurance, Freight and C&F Expenses
Delivery Expense
Depreciation & Amortization
Other Expenses
1,363,985,413
69,104,942
9,477,978
551,506,091
46,440,194
48,418,106
20,177,209
11,372,077
57,798,871
81,919,508
24,655,215
258,105,667
589,159,506
179,138,483
52,596,752
63,647,883
543,786,599
87,751,874
27,551,642
4,086,594,010
452,028,002
27,790,444
2,899,223
177,257,116
16,523,966
17,825,606
7,312,050
4,266,008
21,599,701
18,835,250
8,178,450
92,822,945
197,766,282
69,074,607
12,926,705
18,050,363
203,307,856
28,786,561
8,639,297
1,385,890,432
911,957,411
41,314,498
6,578,755
374,248,975
29,916,228
30,592,500
12,865,159
7,106,069
36,199,170
63,084,258
16,476,765
165,282,722
391,393,224
110,063,876
39,670,047
45,597,520
340,478,743
58,965,313
18,912,345
2,700,703,578
748,845,866
32,948,068
5,719,886
315,983,949
24,724,155
27,433,905
10,021,432
6,900,564
31,046,918
54,556,296
14,527,141
150,637,854
322,661,819
93,314,746
33,079,698
38,333,120
296,368,010
64,083,198
16,065,656
2,287,252,281
(a) Salary and allowances include an amount of Tk. 32,629,498 being Company’s Contribution to provident fund for the period
January 2015 to June 2016.
(b) Delivery expense includes distribution commission on local sales of Formulation and IV Fluid products paid to I & I Services
Ltd., a “Related Party”.
(c) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other
infrastructures.
(d) Sample expense includes VAT on sample and related despatch expense.
Notes to the Financial Statements l
Audit Report 2015-16 I 87
Amount in Taka
34. Related Party Disclosures
29. Other Income
This is arrived at as follows :
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January -
December 2015
(12 Months)
January -
December 2014
(12 Months)
Interest on FDR & Short term Investment
Dividend Income
Royalty
Exchange Rate Fluctuation Gain / (Loss)
Profit on Sale of Fixed Assets (Note 35)
404,847,333
1,427,955
10,634,016
(5,406,570)
1,156,189
412,658,923
100,525,928
-
-
379,817
74,852
100,980,597
304,321,405
1,427,955
10,634,016
(5,786,387)
1,081,337
311,678,326
489,970,647
1,427,955
24,763,177
1,452,991
3,556,877
521,171,647
30.
Finance Cost
This is arrived at as follows :
Interest on Working Capital Loan
Interest on Project / Consortium Loan
Interest on Lease Finance
Interest on Loan from PF, WPPF &
Welfare Fund
Other Bank Charges
588,417,111
152,835,514
149,565,303
166,656,402
35,067,043
71,030,756
421,760,709
117,768,471
78,534,547
98,800,975
40,563,498
1,030,182,401
37,698,000
10,759,966
321,212,167
61,102,975
29,803,532
708,970,234
391,510,508
175,227,715
64,812,955
71,225,739
21,538,046
724,314,963
31. Contribution To WPPF & Welfare Funds
This represents statutory contribution by the company as per Bangladesh Labour Act (amendment) 2013. The amount is
computed @ 5% of net profit before tax (but after charging such contribution).
32.
Income Tax Expenses
This consists of as follows :
(a) Current Tax
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January -
December 2015
(12 Months)
Amount in Taka
January -
December 2014
(12 Months)
(i) Tax provision for current period
(ii) Short/(Excess) Provision for earlier year
766,053,375
(29,913,148)
736,140,227
310,173,315
-
310,173,315
455,880,060
(29,913,148)
425,966,912
421,487,672
15,295,172
436,782,844
(a) Earnings attributable to the
Ordinary Shareholders Tk. 2,948,053,854
993,769,338
1,954,284,516
1,528,297,573
(b) Weighted average number of
Ordinary Shares outstanding
during the period (Note 3.15) Nos.
Earnings Per Share (EPS) /
386,244,234
386,244,234
386,244,234
386,244,234
Adjusted EPS Tk.
7.63
2.57
5.06
3.96
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties
(a) I & I Services Ltd.
(b) Bangladesh Export Import Co. Ltd. Short Term Investment & Interest there on
Local Delivery
Distribution Commission
Nature of Transactions Value of Transaction Balance at Period End
1,430,821,670
-
1,439,037,813
21,290,407,357
322,248,539
1,035,989,018
The Companies are subject to common control from same source.
35. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the period ended 30 June 2016:
Particulars of
Assets
Cost Accumulated
Depreciation
Written
Down Value
Sales Price
Profit /
(Loss)
Mode of
Disposal
Name of
Parties
409,247
Office Equipment
Plant & Machinery
665,000
Furniture & Fixture 16,946,545 11,988,652 4,957,893 4,929,870
2,531,542 1,400,344 3,579,836
Transport & Vehicle
Tk. 37,652,501 29,224,737 8,427,764 9,583,953
8,183,994 1,532,377
537,150
6,520,549
9,716,371
7,057,699
3,931,886
(1,123,130) Negotiation Various Individuals
Various Individuals
Various Individuals
Various Individuals
127,850 Negotiation
(28,023) Negotiation
2,179,492 Negotiation
1,156,189
36. Payment / Perquisites to Managers and Directors
(a) The aggregate amounts paid to/ provided for the Managers and above of the company is disclosed below :
Remuneration
Gratuity
Contribution to Provident Fund
Bonus
Medical
Others
Amount in Taka
January 2015- June 2016
(18 Months)
295,224,430
10,779,325
12,831,690
30,545,000
6,311,696
32,899,347
388,591,488
(b) The above includes salary, allowances, and perquisites amounting Tk. 47,917,879 paid to the Managing Director.
(c) This also includes Tk. 580,000 paid to Independent Directors for attending Board, Audit Committee and other meetings.
(d) Excepting as stated above (c) no board meeting fee was paid to any directors.
(e) No amount of money was expended by the company for compensating any member of the board for special services
Item
Unit
Production Capacity
Actual Production
Capacity Utilization
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable and Inhaler Million Pcs
Million Pcs
2015
(12 months)
2014
(12 months)
2015
(12 months)
2014
(12 months)
2015
2014
4,160.90
4,052.70 3,664.47 3,265.76 88.07% 80.58%
94.46
94.03
75.90
72.37 80.35% 76.96%
Production does not include goods manufactured under contract manufacturing arrangement from third parties manufacturing
sites.
(b) Deferred Tax Expense /
(Income)
33. Earnings Per Share (EPS)
(26,356,152)
709,784,075
16,765,213
326,938,528
(43,121,365)
382,845,547
144,475,316
581,258,160
rendered.
37. Production Capacity and Utilization
88 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 89
38. Capital Expenditure Commitment
46. Events after The Reporting Period
Company’s committed capital expenditure relating to the procurement of Machinery and Equipment as on June 30, 2016 is
US$ 1,706,236.
39.
Finance Lease Commitment
On October 6, 2016 the Directors recommended 5% cash dividend (i.e. Tk. 0.5 per share) in addition to 10% cash dividend (i.e
Tk. 1.00 per share) and 5% Stock dividend (i.e. 5 shares for every 100 shares held) recommended on April 20, 2016.
Excepting above, no circumstances have arisen since the date of Statement of Financial Position which would require adjustment
to, or disclosure in, the financial statements or notes thereto.
At 30 June 2016, the company has annual commitment under finance leases as set out below :
47.
Financial Risk Management
Leases expiring within 1 year
Leases expiring within 2-5 years (inclusive)
40. Claim not Acknowledged as Debt
157,380,075
412,250,396
569,630,471
Tk.
There is no claim against the company not acknowledged as debt as on 30 June 2016.
41. Un-availed Credit Facilities
The company has an un-availed foreign currency loan of US $ 44.988 million sanctioned by BHF-Bank Aktiengesellshaft,
Frankfurt, Germany to partially finance the machinery and equipment to be procured for expansion and diversification project
being implemented by the company. The loan shall have to be availed latest by July 2017 as per approval of Bangladesh
Investment Development Authority. However, the company has approached for extension of the same up to March 2018.
42. Payments Made in Foreign Currency :
Import of Machinery, Equipments & Spares
Import of Raw & Packing Material
Regulatory Fees & Other Expenses
15,775,833
58,323,719
11,304,585
Foreign Currency (Equivalent US$)
Taka
1,243,943,838
4,594,289,751
883,443,526
No other expenses including royalty, technical expert and professional advisory fee, interest, etc. was incurred or paid in foreign
currencies except as stated above.
43. Foreign Exchange Earned / Received :
(a) Collection from Export Sales of US$ 16,200,450
(b) Royalty US$ 320,005
(c) Loan from BHF Bank, Germany US$ 6,571,052
44. Commission / Brokerage to selling agent :
No commission was incurred or paid to any sales agent nor any brokerage or discount other than conventional trade discount
was incurred or paid against sales.
45. Contingent Liability
The company has a contingent liability aggregating Tk. 150,788,789 against disputed income tax claims for the year 1999,
2007, 2008 and 2010. The company has filed Income Tax Reference cases with the High Court Division of the supreme court
against this claims.
There is also a disputed VAT claim aggregating Tk. 144,113,691 against the company. The Company own the verdict of the
Appellate Tribunal in it’s favour. The concerned authority filed appeal to the honorable High Court against this verdict. Additionally,
there are claims of custom duty aggregating Tk. 22,507,358 against the indemnity bond issued by the company in connection
with import of certain plant and machinery. The company has filed writ petitions against these claims.
If any liability arises on disposal of the cases, the company shall provide for such liability in the year of final disposal.
The company also has a contingent liability to the extent of Tk. 148,347,357 for third party corporate gurantee favoring Standard
Bank Ltd. Dhanmondi Branch for Beximco Engineering Limited.
The management of company has overall responsibility for the establishment and oversight of the company’s risk management
framework. Risk management policies, procedures and systems are reviewed regularly to reflect changes in market conditions
and the company’s activities. The company has exposure to the following risks for its use of financial instruments.
Credit risk
Liquidity risk
Market risk
47. 01 Credit Risk
Credit risk is the risk of a financial loss to the company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations and arises principally from the company’s receivables. Management has a credit
policy in place and exposure to credit risk is monitored on an ongoing basis. As at 30 June 2016 substantial part of
the receivables are those from its related company and subject to insignificant credit risk. Risk exposures from other
financial assets. i.e. Cash at bank and other external receivables are nominal.
47. 02 Liquidity Risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The
company’s approach to managing liquidity ( cash and cash equivalents) is to ensure as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due under both normal and stressed conditions without incurring
unacceptable losses or risking damage to the company’s reputation. Typically, the company ensures that it has sufficient
cash and cash equivalent to meet expected operational expenses including financial obligations through preparation of
the cash flow forecast with due consideration of time line of payment of the financial obligation and accordingly arrange
for sufficient liquidity/fund to make the expected payment within due date. In extreme stressed conditions the company
may get support from the related company in the form of short term financing.
47. 03 Market Risk
Market risk is the risk that any change in market prices such as foreign exchange rates and interest will affect the
company’s income or the value of its holdings financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters.
(a) Currency risk
The company is exposed to currency risk on certain revenues and purchases such as revenue from foreign customers
and import of raw material, machineries and equipment. Majority of the company’s foreign currency transactions are
denominated in USD and relate to procurement of raw materials, machineries and equipment from abroad. The company
have received foreign currency loan which shall be repaid in foreign currency.
(b) Interest rate risk
Interest rate risk is the risk that arises due to changes in interest rates on borrowing. The foreign currency loan is subject
to floating rates of interest. Local loans are, however, not significantly affected by fluctuations in interest rates. The
company has not entered into any type of derivative instrument in order to hedge interest rate risk as at the reporting
date.
Salman F Rahman
Vice Chairman
Dhaka
6 October, 2016
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
90 I Audit Report 2015-16
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2015-16 I 91
#
BEXIMCO PHARMACEUTICALS LIMITED
17 Dhanmondi R/A, Road No. 2, Dhaka-1205, Bangladesh
Proxy Form
I/We ______________________ ___________ ___________ ___________ of ___________ ___________ ______________
___________ ___________ ___________ ___________ __being a member of Beximco Pharmaceuticals Limited hereby appoint
Mr./Ms. ___________ ___________ ___________ ___________ ________of ___________ ___________ ___________
___________ ___________ ___________ as my/our proxy to attend and vote for me/us on my/our behalf at the 40th Annual General
Meeting of the Company to be held on Saturday, the 19th November, 2016 at 10.30 a.m. at Beximco Industrial Park, Sarabo, Kashimpur,
Gazipur and at any adjournment thereof.
As witness my/our hand this ___________ __________________ ___________ day of November, 2016.
Signed by the said in presence of ___________ ___________ ___________ ___________ ___________ ___________________
___________________
(Signature of the Proxy)
Revenue
Stamp
Tk. 20.00
____________________ __
Signature of the Shareholder(s)
Dated: ___________ ___
Register Folio / BOID No. : ___________ ___________ ___________ ___________ __
____________________
(Signature of the Witness)
Dated: __________________
Note: A member entitled to attend and vote at the Annual 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.
Signature Verified
_______________
Authorised Signatory
#
BEXIMCO PHARMACEUTICALS LIMITED
SHAREHOLDERS’ ATTENDANCE SLIP
I/We hereby record my/our attendance at the 40th Annual General Meeting being held on 19th November, 2016 at
10.30 a.m. at Beximco Industrial Park, Sarabo, Kashimpur, Gazipur.
Name of Member(s)________________________ _______________________________________________________
Register Folio/BOID No _____________________________________________________________________________
holding of _____________ _________________ ordinary Shares of Beximco Pharmaceuticals Limited
N.B. 1. Please note that the AGM can only be attended by the honourable shareholder or properly constituted Proxy. Therefore, any
friend or children accompanying with honourable Shareholder or Proxy cannot be allowed into the meeting.
2. Please present this slip at the reception desk.
Audit Report 2015-16 I 93
______________________
Signature(s) of Shareholder(s)
92 I Audit Report 2015-16
Corporate Information
Operational Headquarters
19 Dhanmondi R/A, Road # 7
Dhaka- 1205, Bangladesh
Phone : +880-2-58611001
Fax : +880-2-58614601
E-mail : info@bpl.net
Website : www.beximcopharma.com
Corporate Headquarters
17 Dhanmondi R/A, Road # 2
Dhaka- 1205, Bangladesh
Phone : +880-2-58611891
Fax : +880-2-58613470
E-mail : beximchq@bol-online.com
Factory
Tongi Unit
126 Kathaldia, Tongi, Gazipur
Bangladesh
Kaliakoir Unit
Plot No. 1070/1083, Mouchak
Kaliakoir, Gazipur
Bangladesh
Stock Exchange Listing
Dhaka Stock Exchange Ltd.
Chittagong Stock Exchange Ltd.
AIM of London Stock Exchange plc (GDRs)
Public Relations
IMPACT PR
Apartment # A-1, House # 17,
Road # 4, Gulshan-1,
Dhaka-1212, Bangladesh
FTI Consulting LLP
200 Aldersgate
Aldersgate Street, London EC1A 4HD
United Kingdom
Legal Advisor
Rafique-ul Huq
Barrister-at-Law
47/1 Purana Paltan
Dhaka-1000, Bangladesh
Auditors
M. J. Abedin & Co.
Chartered Accountants
National Plaza (3rd Floor)
109, Bir Uttam C. R. Datta Road
Dhaka- 1205, Bangladesh
Banker
Janata Bank Ltd.
Local office
1 Dilkusha C/A
Dhaka- 1000, Bangladesh
For GDRs
Nominated Advisor
SPARK Advisory Partners Limited
5 St. John's Lane, EC1M 4BH,
London, UK
2 Wellington Place, LS1 4AP, Leeds, UK
Broker
Daniel Stewart & Company Plc
33 Creechurch Lane
London EC3A 5EB
Custodian
HSBC
Anchor Tower, 1/1-B, Sonargaon Road
Dhaka- 1205, Bangladesh
Depository Bank
The Bank of New York Mellon
101 Barclay Street
22 W-New York, NY 10286- USA
www.beximcopharma.com
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