ANNUAL REPORT | 2016-17
Annual Report
2016-17
We take it minute by minute, drop by drop, molecule by molecule. The miracle of a pyramid is in the
perfection of every stone. The miracle of life is in the health of every cell. At Beximco Pharma, we are
tireless at achieving such perfection in every molecule of our medicines. That's our little contribution to
life. Here's to perfection. Here's to life.
BEXIMCO PHARMACEUTICALS LIMITED
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
2016-17 Highlights
Post Period Highlights
What We Offer
Our Global Accreditations
Our Manufacturing Capabilities
Research and Development
Our People
Beyond Borders
Awards and Accolades
What We Do for the Society
Corporate Events
Notice of Annual General Meeting
Chairman’s Statement
Directors’ Report to the Shareholders
Corporate Governance Compliance Report
Certificate on Compliance of Corporate Governance Guidelines
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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About the Company
Incorporated in 1976, Beximco Pharma started its operation in 1980, importing
products from Bayer AG, Germany and Upjohn Inc., USA, which were later
manufactured and distributed under licensing arrangement. From that humble
beginning, the company has grown from strength to strength, and today it has
emerged as a leading manufacturer and exporter of medicines in Bangladesh.
Being the only Bangladeshi company listed on AIM of London Stock Exchange,
Beximco Pharma has received GMP approvals from all major global regulatory
authorities, currently having a global footprint in more than 50 countries across all
the continents.
With its mission to ensure access to affordable medicines for all, the company is
driven by its vision to be among the most admired companies in the region.
About the Company | Annual Report 2016-17 | 5
The Board of
Directors
Management
Committee
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Rabbur Reza
Chief Operating Officer
Ali Nawaz
Chief Financial Officer
Afsar Uddin Ahmed
Director, Commercial
Lutfur Rahman
Director, Manufacturing
Salman F Rahman
Vice Chairman
A S F Rahman
Chairman
Shamim Momtaz
Director, Manufacturing
Mohd. Tahir Siddique
Director, Quality
Zakaria Seraj Chowdhury
Director, International Marketing
Rizvi Ul Kabir
Director, Marketing
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
A R M Zahidur Rahman
Director, Production
Jamal Ahmed Choudhury
Executive Director, Accounts & Finance
Prabir Ghose
Executive Director, Quality Assurance
M A Arshad Bhuiyan
Deputy General Manager, Human Resources
Company Secretary
Mohammad Asad Ullah, FCS
Executive Director
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
6 | Annual Report 2016-17 | The Board of Directors
Management Committee | Annual Report 2016-17 | 7
Key Events in History
1993
1983
2005
1976
1992
2009
2015-16
2013
2011
2008
2016-17
1980
1985
2003
2006
2010
2014
2012
1976 1980
1983
1985
1992
1993
2003
2005
2006
2008
2009
2010
2011
2012
2013
2014
2015-16
2016-17
- Launched own
formulation brands
- Company
incorporated
- Russia became the
first export destination
for formulation
products
- Started export
operations with
APIs
- Listed on Dhaka
Stock Exchange
- Started manufacturing
products of Bayer AG,
Germany and Upjohn
Inc., USA, under license
agreements
8 | Annual Report 2016-17 | Key Events in History
- Received GMP
accreditation from
Therapeutic Goods
Administration (TGA),
Australia and Gulf
Central Committee for
Drug Registration, for
GCC states as the first
Bangladeshi company
- Entered into technology
transfer arrangement to
manufacture Roche’s
ARV drug Saquinavir
- Only company in
Bangladesh to get
listed on the
Alternative Investment
Market (AIM) of
London Stock
Exchange (LSE)
through issuance of
GDRs
- Introduced
anti-retroviral (ARV)
drugs as the first
Bangladeshi company
- Launched CFC free
HFA inhalers for the
first time in
Bangladesh
- Received GMP
approval from ANVISA,
Brazil as the first
Bangladeshi company
- Commenced export
of ophthalmic
products to Europe as
the first Bangladeshi
company
- Received GMP
accreditation from
AGES, Austria (for
European Union)
- Launched
Salbutamol HFA
inhaler (Azmasol®)
in Singapore as the
first Bangladeshi
company
- Entered into the US
market through
acquisition of an
Abbreviated New Drug
Application (ANDA) as the
only pharmaceutical
company in Bangladesh
- Received GMP approval
from the U.S. FDA as the
first Bangladeshi company
- Launched generic
version of revolutionary
hepatitis C drugs Sovaldi®
and Harvoni®
- Received product
approval from Health
Canada as the first
Bangladeshi company
- Entered the Gulf pharma
market (Kuwait) as the first
Bangladeshi company
- Won National Export
Trophy (Gold) for
the record 5th time
- Became the first
Bangladeshi pharmaceutical
company to commence
export of pharmaceutical
products to the USA.
- Received approvals for
two ANDAs (Sotalol tablets
and Metformin ER tablets)
from the US Food and Drug
Administration (U.S. FDA)
- Formed the Company’s
first overseas
manufacturing collaboration
with the joint venture with
BioCare Manufacturing (M)
Sdn Bhd based in Malaysia.
- Granted a sub-license by
Medicine Patent Pool of the
UN to produce Bristol-Myers
Squibb’s new hepatitis C
drug Daclatasvir.
- Received GMP accreditation
from Taiwan Food & Drug
Administration (TFDA) and
Health Canada as the first
Bangladeshi company
- Exported medicine to
Australia and Romania as the
first Bangladeshi company
Beximco Pharma is entering a
new phase of growth and our
strategy aims at capitalizing
on our competitive advantages
through meaningful alliances,
enhancing R&D skills and
expansion of capacities.
Nazmul Hassan MP
Managing Director
Managing Director’s Statement
Dear Shareholders,
I am pleased to report another successful year for the company with solid performance.
Bangladesh continues to achieve sustained economic growth with GDP growing by a
record 7.2% in the last year, driven largely by rapid industrialization and robust agricultural
output. The country has successfully transformed itself into a state of flourishing economic
growth as it seeks to attain middle-income status by 2021. In its ‘Inclusive Growth and
Development Report 2017,’ the World Economic Forum commended Bangladesh’s
economic progress and ranks the country ahead of India and Pakistan. All of these positive
developments give us optimism for the country’s rapid and continued socioeconomic
progress in the coming years.
Bangladesh Pharma Industry is currently valued at more than $2 billion and the market is
growing by double digit for the last few years. Local companies consistently dominate and
occupy more than 70% of the total market share. The pharmaceutical industry is one of
the most dynamic and technologically advanced industries in Bangladesh. A recent study
from London based BMI suggests that Bangladesh’s pharmaceutical industry will continue
to expand reaching USD 3.369 billion mark by 2020. Bangladesh’s pharmaceutical sector
has the potential to grow at 15 percent for the next five years riding on the expanded
domestic market as well as new export frontiers, according to a new research.
During the past year, Beximco Pharma registered double digit growth with revenues of
BDT 15.5 billion. We have maintained consistent growth in prescription share, the highest
ever being achieved in the last quarter (April- June 2017), which helped us register record
monthly sales in June 2017. According to QuintilesIMS (now IQVIA) we grew faster than the
market as well as the top 5 companies in the 2nd half of 2016-17. We have maintained
our strong position in key therapeutic segments having 7 Beximco brands in the top 50 list.
As we continue to pursue growth in international markets, especially in emerging and
regulated markets, we believe future growth will be largely derived from our strategic
collaboration with global MNCs and generic companies. Such collaboration will leverage
our competitive capabilities in selected niche areas and provide access to new markets.
There is no doubt Beximco Pharma is entering a new phase of growth and our strategy aims
at capitalizing on our competitive advantages through meaningful alliances, enhancing
R&D skills and expansion of capacities.
Global generic drugs market currently stands at more than $250 billion, with consistent
double digit growth, driven by increasing demand both in developed and emerging
economies. We are aware of the opportunities in global generics, particularly for value added
generics in regulated markets. Our major focus remains on research and development for
bringing high quality, differentiated products. Our R & D team has been continually working
on diverse delivery systems, as well as regulatory filings in different markets.
recent
study
based
from
A
London
BMI
suggests that Bangladesh’s
industry
pharmaceutical
will continue
to expand
reaching USD 3.369 billion
mark by 2020. Bangladesh’s
pharmaceutical
sector
has the potential to grow
at 15 percent for the next
five years riding on the
expanded domestic market
as well as new export
frontiers, according to a
new research.
Managing Director’s Statement | Annual Report 2016-17 | 11
year
Last
Beximco
Pharma became the first
pharma
Bangladeshi
company to export medicine
to the world’s largest and
most stringently regulated
pharma market, USA.
As reported in the last year, we are currently building a large and modern pharmaceutical
facility to maintain a sound platform towards sustainable growth. Civil construction is
complete and machinery is being imported. We expect commissioning of this new facility
by early 2019. This facility with expanded capacity will cater to our growing demands in
the coming days. We are also having a project of creating a new nasal spray facility and
modern microbiology lab, while our strategic expansion of inhaler facilities is going on.
Our state of the art human insulin project, in collaboration with a leading global insulin
producer from Europe is complete and commercial launch is expected during the first half
of 2018. Human insulin has a sizable market which is growing fast in the country, and we
are optimistic that Beximco will be able to capture a significant market share of human
insulin in the near future and contribute to revenue growth of the company.
We have seen another positive development as country’s much-awaited API technology
park in Munshiganj is now ready and plots are now being handed over to the selected
companies. This will largely benefit the industry providing backward integration into API
and lowering its heavy dependency on import.
Last year Beximco Pharma became the first Bangladeshi pharma company to export
medicine to the world’s largest and most stringently regulated pharma market, USA.
After the successful launch of Carvedilol in US market, company received approval for
3 additional products from US FDA, namely Sotalol, Methocarbamol and Metformin. In
October 2017 we commenced export of Sotalol- our second product to the US market.
During the past year, Beximco Pharma completed its first overseas manufacturing
collaboration through a joint venture with BioCare Manufacturing (M) Sdn Bhd in Malaysia.
The metered dose inhaler facility established under the joint venture has already received
GMP approval from Malaysia’s Ministry of Health. Negotiations are currently underway for
supplying products to the government.
Beximco pharma has been granted a sub-license by UN’s Medicines Patent Pool (MPP)
to manufacture Daclatasvir, a new breakthrough drug for hepatitis C from Bristol-Myers
Squibb. This sub-license is a testament to our capabilities and will enhance our image in
the global stage.
I am pleased to share that in September 2017 World Health Organization (WHO)
approved Beximco Pharma’s oral solid dosage facility following the rigorous audit by its
Prequalification Inspection Group. Beximco Pharma facility has been found fully compliant
with the standards of Good Manufacturing Practices (GMP) recommended by the WHO.
Prequalification is a United Nation’s program provided by WHO to assess the quality, safety
and efficacy of medicinal products procured by the international agencies. The WHO’s
approval will help us compete in international tenders from global agencies.
In October 2017, Beximco Pharma signed an MoU to acquire majority shareholding of
Nuvista Pharma- a pharmaceutical company specializing in hormones and steroid
drugs. This marks the beginning of an exciting chapter for us as this acquisition deal,
if accomplished, will serve as a strong foundation for sustainable growth in the future.
Nuvista’s strong footing in hormones and steroids is an ideal strategic fit with Beximco.
We are committed to ensuring health and wellbeing of the people by providing access to
affordable medicines, and all our initiatives are directed towards achieving that mission. Our
focus remains on expanding our generics business, enhancing R&D productivity, enabling
our people and improving cost competitiveness. Quality is critical to our success and our
excellent track record of compliance has made us a trusted partner to our customers.
focus
Our
remains on
expanding our generics
business, enhancing R&D
productivity, enabling our
people and improving cost
competitiveness.
12 | Annual Report 2016-17 | Managing Director’s Statement
Managing Director’s Statement | Annual Report 2016-17 | 13
Amid all the achievements and progresses we have made, we are very much aware of the
challenges in today’s ever changing business environment and strive to convert them into
opportunities. With various initiatives underway, for both domestic and overseas markets,
I firmly believe our commitment to quality and our focus on people will propel us forward.
On behalf of everyone at Beximco Pharma and our board of directors, I thank you all for your
astounding support, and I look forward to continued progress across each of our strategic
imperatives in the coming days.
Nazmul Hassan MP
Managing Director
Managing Director’s Statement | Annual Report 2016-17 | 15
Currently undertaking
massive expansion
projects
Managing Director’s Statement | Annual Report 2016-17 | 17
2016-17 Highlights
Net sales registered year-on-year growth of 12.5%; and Export sales increased by 25.2%.
Became the first Bangladeshi pharmaceutical company to commence export to the USA.
Received approvals for two ANDAs (Sotalol tablets and Metformin ER tablets) from the US Food and Drug Administration.
Launched 15 products in the domestic market, four of which were launched for the first time in Bangladesh.
Registered 71 new products in 20 countries.
Entered seven new markets– Panama, Ecuador, Tanzania, Zimbabwe, Mali, Cameron and Guinea Conakri.
Formed the Company’s first overseas manufacturing collaboration with the joint venture with BioCare Manufacturing
(M) Sdn Bhd based in Malaysia.
Granted a sub-license by Medicine Patent Pool (MPP) of the UN to produce Bristol-Myers Squibb’s new hepatitis C
drug Daclatasvir.
Post Period Highlights
Became the first Bangladeshi pharmaceutical company to commence export of pharmaceutical products (Olopatadine
eye drops) to Canada.
Received approval for the Company’s fourth ANDA from the U.S. FDA.
Commenced second product export to the US- remains Bangladesh’s only pharmaceutical company to export
pharmaceutical products to the US.
Received GMP accreditation for the Company’s oral solid dosage facility at Tongi from World Health Organization and
granted WHO Prequalification.
Entered into a memorandum of understanding to acquire majority shareholding in Nuvista Pharma, a pharma company
in Bangladesh specializing in hormones and steroid drugs.
Awards:
- Nominated for SCRIP award 2017 in the category “Best Company in an Emerging Market”.
- Received Economic Times “Asia’s Best Healthcare Award 2017”.
Microscopic perfection for global healthcare solutions.
18 | Annual Report 2016-17 | Highlights
The combined force of our product development, manufacturing skills and also our marketing
expertise will yield definitive results not just for investors but also for patients in need.
here’s to life
Certified: US FDA TGA Australia AGES Health Canada TFDA WHO
www.beximcopharma.com
What We Offer
Beximco Pharma offers a broad portfolio of more than 300 generics encompassing all major therapeutic categories, namely
antibiotics, analgesics, anti diabetics, respiratory, cardiovascular, central nervous system, dermatology, gastrointestinal
etc. It also produces a number of active pharmaceutical ingredients (APIs) mostly for captive consumption. The company
has sound expertise with specialized and advanced drug delivery systems 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.
Our Global Accreditations
Our facilities have been accredited by the regulatory authorities of USA, Australia, Europe, Brazil, Gulf Nation and Canada,
among others. BPL is also the first Bangladeshi company approved by the US Food and Drug Regulatory authority (U.S.
FDA).
20 | Annual Report 2016-17 | What We Offer
Our Global Accreditations | Annual Report 2016-17 | 21
Our Manufacturing Capabilities
Situated near the capital city of Dhaka, our manufacturing site extends over an area of 22 acres which
houses facilities for manufacturing tablets, capsules, intravenous fluids, liquids, creams, ointments,
suppositories, metered dose inhalers, dry powder inhalers, sterile 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. A new facility, one of the largest of its kind in terms of
capacity, is being constructed at our Tongi site which is expected to be operational by 2019.
State of the art facility for human insulin
Our Manufacturing Capabilities | Annual Report 2016-17 | 23
Research and Development
R&D plays a crucial part in transforming our company into a truly international one.
Our key strength lies in our ability to excel in developing technologically complex
products for creating strong differentiation. Our R&D team has shown their expertise
in developing MDI, DPI, nasal sprays, sterile ophthalmics, lyophilized injectables and
so on which are difficult to imitate and they have the ability to execute and replenish
our large and growing product pipeline. We continue to make significant investment
in expanding our R&D capabilities to lay a firm foundation for sustained innovation.
Our new state-of-the-art R&D Centre now facilitates the development of products
and processes employing latest technological advances.
Our focus remains on scaling up our manufacturing capabilities
to keep pace with the progress in R&D initiatives.
Research and Development | Annual Report 2016-17 | 25
First Bangladeshi pharma company
to export medicine to U.S.A
We have the expertise and resources to focus on more complex
and differentiated products across a range of therapeutic
categories, dosage forms and delivery systems.
Certified: US FDA TGA Australia AGES Austria Health Canada TFDA WHO
here’s to life
Our People
We always recognize that people are the cornerstone of our success and BPL
reaffirms its commitment to place people at the center of its strategy. Our dedicated
and highly capable people- their collective resolve to excel- have always led us to
achieve new milestones. The 3800-strong workforce, the lifeblood of this company,
always propels us forward and our ability to transform ourselves is largely driven
through empowering our people. That’s why we strive to provide each and every
of our employees with an environment that instills pride, fosters growth and
encourages innovation.
Our individual and collective experiences allow us to better understand the needs of
our patients and further our work to improve their health and wellbeing.
Our People | Annual Report 2016-17 | 29
Annual Sales & Marketing Conference, Cox’s Bazar 2016-17
Sales and Marketing Strategic Briefing 2016 at Brisbane, Australia
The Annual Strategic Briefing Session of Sales and Marketing Departments was held in Brisbane during July 22-27, 2016.
Managing Director of BPL Mr. Nazmul Hassan MP spoke on the occasion and provided valuable guidance and direction to
the Team Beximco.
“Brand Purposing” Workshop in Bhutan
BPL Marketing Team participated in “Brand Purposing” workshop during March 17-18, 2017 at Thimpu, Bhutan.
30 | Annual Report 2016-17 | Our People
Our People | Annual Report 2016-17 | 31
USA
CARIBBEAN
AFRICA
LATIN & CENTRAL
AMERICA
EUROPE
MIDDLE EAST
ASIA
PACIFIC ISLAND
AUSTRALIA
EXPORT MARKETS
Asia
Singapore
Hong Kong
Cambodia
Nepal
Sri Lanka
Philippine
Thailand
Bhutan
Macau
Malaysia
Indonesia
Afghanistan
Azerbaijan
Vietnam
Taiwan
Uzbekistan
Middle East
Yemen
Jordan
Iraq
Kuwait
Pacific Island
Fiji
Papua New Guinea
Solomon Island
Kiribati
Tonga
Samoa
Africa
Kenya
Ghana
Somalia
Nigeria
South Africa
Ethiopia
Mauritius
Burundi
Uganda
Lesotho
Guinea
Tanzania
Gabon
Zimbabwe
Cameroon
Europe
Austria
Germany
Romania
USA
Canada
Australia
Latin & Central
America
Chile
Belize
Guatemala
Colombia
Peru
Surinam
Panama
Costa Rica
Beyond Borders
Beximco Pharma is a leading exporter of medicines in the country and has won the prestigious National Export Trophy
(Gold) a record 5 times. The company has so far expanded its geographic footprint to more than 50 countries and has
earned the reputation of a quality producer of medicine. Being the first pharma company in Bangladesh to export medicine
to USA, we are gearing up to strengthen our presence in global market, especially many emerging and developed markets.
With our competitive generic drug skills and cost advantages, we continue to explore new opportunities across our existing
and new markets. During the period we commenced export of Carvedilol- a prescription drug for hypertension in US market
and also received approvals of 3 additional products namely sotalol, methocarbamol and metformin from the US FDA. We
are expecting 2 more approvals from our growing US pipeline by early 2018. In January 2017 Beximco announced its first
overseas manufacturing collaboration when it formed joint venture with BioCare Manufacturing (M) Sdn Bhd in Malaysia.
Beximco Pharma with 30% of the equity in this JV, will provide full technical support to BioCare for creating GMP compliant
facilities in Seri Iskandar Pharmaceutical Park, Malaysia to produce specialized pharmaceutical products.
Beyond Borders | Annual Report 2016-17 | 33
Awards and Accolades
Beximco Pharma awarded Economic Times Best Asian Healthcare Brand 2017
CPhI Worldwide 2016
Beximco Pharmaceuticals Ltd. has won the prestigious Economic Times Best Asian Healthcare Brands 2017 at a grand
gala event held on 26 September 2017 in Dubai. This was an initiative by the global media conglomerate The Economic
Times and the process advisor for this was dubai based leading research and consultancy firm MENA Research Partners
(MRP). Leading brands from India, Japan, China, Singapore, Hongkong, UAE and other countries were shortlisted for the
award. These brands, lauded for their positive contribution to Asia’s healthcare industry, were eventually felicitated and
featured in a publication which was launched at this summit.
Beximco Pharma Nominated for SCRIP Award
Beximco Pharma team led by the COO Mr. Rabbur Reza attended the world’s largest pharma expo CPhI Worldwide held
in Barcelona, Spain during October4-6, 2016. BPL, like previous years, had a stall in this mega event to showcase its
products and competitive capabilities.
BioCare Manufacturing (M) Sdn Bhd in Malaysia
Beximco Pharma has been nominated for the prestigious SCRIP award 2017 in the category of Best Company in an
Emerging Market. BPL was nominated in the same category in 2016 and in the category of best management team in
2014.
Beximco Pharma’s Managing Director visited the manufacturing facility estabilished under Joint Venture with BioCare
Manufacturing (M) Sdn Bhd in Malaysia.
34 | Annual Report 2016-17 | Awards and Accolades
Awards and Accolades | Annual Report 2016-17 | 35
What We Do for the Society
Responding to the evolving needs of the society and making a meaningful impact on the quality of their lives are central to
our CSR phiolosophy. CSR has been an integral part of our strategic commitment, and it remains one of our core values.
We identify the needs and priorities of the community and implement appropriate actions thru a structured plan. We are
guided by the purpose and belief that 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 our people. Some of our major CSR initiatives during the said period
include :
Support to the Flood Victims
Beximco Pharma extended support to the flood victims
in different parts of the country through volunteers of
Jaago Foundation.
Free Medicines to Acid Survivors Foundation
(ASF)
Beximco Pharma donated large quantities of free
medicines to Acid Survivors Foundation (ASF) a leading
NGO working with acid survivors to prevent acid
violence in Bangladesh. With multiple interventions
for protection, prevention and rehabilitation of Acid
Survivors, ASF also run a specialized Hospital where
service is completely free for the Survivors.
Support to Shuchona Foundation
Beximco Pharma extended support to Shuchona
Foundation which is a not-for-profit advocacy, research
and capacity-building organization specializing
in
neurodevelopmental disorders (NDDs) and mental
health.
Support to UCEP Bangladesh
BPL extended support to UCEP Bangladesh, a leading
non-govt organization that provides free technical
education to slum kids and orphans through their 53
schools in Bangladesh, for organizing their annual
event Working Students’ Day. The day long program
included art competition, sports, cultural program etc.
for the underprivileged students of UCEP.
Sponsoring Kibria International Art Fair
Beximco pharma sponsored Kibria International Print
Fair 2017 where leading artists from different countries
including Bangladesh participated at the Zainul Gallery
of Dhaka University’s Faculty of Fine Arts.
Bangladesh Innovation Summit 2017
Beximco Pharmaceuticals Limited was one of the
sponsors of “Bangladesh Innovation Conclave 2017”,
the first-of-its-kind event organised by the Bangladesh
Brand Forum with the view to pushing the innovation
agenda for Bangladesh. Local and international experts
and leaders of different sectors shared their knowledge
and experiences at this mega event on May 20, 2017
held at Le Méridien Dhaka.
National Youth Assembly 2017
Beximco Pharma was a sponsor of the National Youth
Assembly 2017, a JAAGO Foundation initiative to build
leadership skills and capacity among the volunteers,
aimed at providing a hub for innovation where youth
leaders could meet and share their ideas and visions
to build a better Bangladesh. The 4-day program was
held during January 30- February 2, 2017 in Cox’s
Bazar and was attended by youth leaders, corporate
CEOs, ambassadors and prominent personalities in the
country.
36 | Annual Report 2016-17 | What We Do for The Society
What We Do for The Society | Annual Report 2016-17 | 37
Beximco Pharma extended humanitarian support to Rohingya Refugees
Corporate Events
BPL Family Day
On January 28, 2017 BPL Family Day was celebrated
at ICCB, Dhaka through family-friendly activities and
performances.
Health Awareness Program
A diabetes awareness program “Diabetes and Healthy
Living” was arranged for the employees at BPL head
office during 22-23 August, 2016. This program was
facilitated by a panel of doctors from Square Hospitals
Ltd.
Inter-Department Football Tournament
With the view to promote sports and fitness among
employees, HRD initiated the 6A Side Inter-Department
Football Tournament on March 31, 2017. All employees
accompanied by their families were invited to cheer up
for their respective departments.
Annual Cultural Program
Management of Beximco Pharma attended the Annual
Cultural Program – 2016 organized by Beximco Sramik-
o-Karmachari Union on March 10, 2017 at Factory
Complex. In this function, management of BPL handed
over prize money, insignia, certificates, stipend money,
and laptops to the meritorious children of factory’s
permanent staffs as a part of CSR.
Beximco Group vice-chairman Salman F Rahman and managing director of Beximco Pharma Nazmul Hassan MP recently
inaugurated free medical camp for Rohingya refugees at Balukhali of Ukhia in Cox’s Bazar. They visited the Rohingya
camps for providing healthcare services including medicines and doctors and distributed large quantities of clothes, baby
foods, and other essentials to the Rohingya families. Over 600,000 Rohingyas have fled to Bangladesh in recent months
facing ethnic cleansing and genocide in their homeland, Rakhine State. Beximco Pharma will continue to provide this
humanitarian assistance as long as they stay in these refugee shelters.
38 | Annual Report 2016-17 | What We Do for The Society
Corporate Events | Annual Report 2016-17 | 39
Best Worker Awards
Management of Beximco Pharmaceuticals newly
introduced “Best Worker” this year and selected 06
best workers for the year 2016. They handed over prize
money, insignia, and certificate to Best Workers on
March 10, 2017 at Factory Complex.
Annual Sales Picnic
Annual Sales Picnic of Beximco Pharma was held on
March 17, 2017 at Socio Cluture Center (PSCC), Pubail,
Gazipur.
Factory Annual Picnic
Annual Picnic– 2016 (2nd phase) of factory was held on
February 03, 2017 at Mohammadi Garden, Savar. Each
year the annual picnic is arranged for the employees
so that they could get together and have fun with their
colleagues and families.
Women's Day 2017
As an initiative to inspire change through awareness a special session was organized on Women’s Health
Awareness on March 8, 2017. It was conducted by Dr. Shehreen F Siddiqui.
Observation of Different Days
World Osteoporosis Day
World Dentist Day
World Asthma Day Celebration
World Diabetes Day
World Glaucoma Week Celebration, Rangpur.
World COPD Day
Visits
Visitors from European Union & Parliament
Members
A delegation of EU parliament members led by the EU
Ambassador H.E. Pierre Mayaudon visited Beximco
Pharma’s Plant at Tongi on November 16. Beximco
Pharma Managing Director Nazmul Hassan MP, and
Chief Operating Officer Rabbur Reza welcomed
the delegation, briefed them about the company
and showed them the world class manufacturing
operations.
40 | Annual Report 2016-17 | Corporate Events
Corporate Events | Annual Report 2016-17 | 41
Visitors from ICDDR, B
High Officials from ICDDR including Mr. Thomas Bery
& Mr. Famul Rose visited the Tongi Plant on November
24, 2016.
Visitors from D-8 Countries
A group of visitors from D-8 Countries (8 developing
Countries- Bangladesh, Egypt,
Iran,
Malaysia,Nigeria, Pakistan and Turkey) visited the
Tongi Plant of BPL and had a meeting with factory
management on May 18, 2017.
Indonesia,
Visit by Australian Ambassador
Australian High Commissioner to Bangladesh Her
Excellency Ms. Julia Niblett and second secretary
Ms.Jane Hardy visited the Tongi factory on June 5,
2017. They expressed their satisfaction seeing the
USFDA and TGA approved state-of-the-art facility.
Visitors from Turkey
A group of visitors from Abdi Ibrahim Pharmaceuticals
headed by its Chairman Mr. Nezih Barut visited the
Tongi Plant on March 27, 2017.
Corporate Events | Annual Report 2016-17 | 43
We are humbled by the opportunity to deliver the smiles of good health to humanity across colors, creed and
communities. With a string of 5 Export Gold Trophies, an array of international approvals, and a sea to travel lying
open in front, at Beximco Pharma, we are committed to excellence by setting high standards of quality and safety
of our products. Here’s to the future. Here’s to life.
here’s to life
Certified: US FDA TGA Australia AGES Austria Health Canada TFDA WHO
Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
NOTICE OF THE FORTY-FIRST ANNUAL GENERAL MEETING
Notice is hereby given that the Forty-first Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held
on Saturday, the 23rd December, 2017 at 10.00 a.m. at Beximco Industrial Park, Sarabo, Kashimpur, Gazipur to transact the following
business:
AGENDA
1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended 30th June, 2017 together with
reports of the Auditors and the Directors thereon.
2. To declare 12.50% Cash Dividend.
3. To elect Directors.
4. To approve the re-appointment of Independent Directors.
5. To appoint Auditors for the year ended 30th June, 2018 and to fix their remuneration.
6. To consider and approve the proposed acquisition of majority Shareholdings of Nuvista Pharma Limited as per the terms of the
MoU authorized by the Board.
By order of the Board,
(MOHAMMAD ASAD ULLAH, FCS)
Executive Director & Company Secretary
Dated: 22 November, 2017
NOTES:
(1) The Shareholders whose names appeared in the Share Register of the Company or in the Depository Register on the record date
i.e. 15 November, 2017, will be entitled to attend at the Annual General Meeting and to receive the dividend.
(2) A Member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy
Form, duly stamped, must be deposited at the Registered Office of the Company, not later than 48 hours before the time fixed for
the meeting.
(3) 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).
(4) 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.
Notice of Annual General Meeting | Annual Report 2016-17 | 45
Financials
Chairman’s Statement
Dear Shareholders,
Following a regulatory change made by the National Board of Revenue,
Beximco Pharma has changed its accounting reference date from 31
December to 30 June. The twelve months to 30 June 2017 is our first
full-year reporting since the change.
I am pleased to report another successful year for Beximco Pharma,
both in our domestic and export markets, demonstrating our continued
growth momentum. Upon review of the Directors’ Report and the
Managing Director’s Statement, you will note that we have performed
well in our operational and financial continuum with sales, net profit
and earning per share strongly increasing from the comparable
previous period.
We have accelerated growth in export sales, registering year-on-year
growth of 25%, driven by our focus on increasing our presence in
markets around the world. With the export of our first product to the US
in August 2016, we began a new era for the pharmaceutical industry in
Bangladesh. We continue to build our US portfolio, launching our second
product in this important market in October 2017. Beximco Pharma
remains the only Bangladeshi company to export pharmaceutical
products to the US.
In September 2017, we commenced the export of our first product in
Canada, marking the first time a pharmaceutical product manufactured
in Bangladesh has been launched in this country.
During the reporting period, Beximco Pharma formed its first overseas
joint venture with Malaysian-based BioCare Manufacturing (M) Sdn
Bhd to set up a facility to produce specialised pharmaceutical products
in Seri Iskandar Pharmaceuticals Park, Malaysia. Beximco Pharma
will provide technical support to establish the facilities,
as well as the technology to manufacture and produce
products. Although no significant impact in the short term is
expected on our earnings as a result of this joint venture, it
is an important testimony of our technical capabilities as a
generic manufacturer.
Additionally, as part of our strategy to diversify, expand and
reinforce our domestic market position, we are now exploring
acquisition of a local pharmaceutical company strategically
fit for Beximco Pharma. A non-binding memorandum of
understanding has been entered into for the acquisition of
majority shares of Nuvista Pharmaceuticals- a Bangladeshi
company specializing in hormone and steroid drugs.
As you know, we are making significant investment in
our manufacturing facilities; our large scale physical
initiated to support company’s
infrastructure projects
current and future growth, progressed as planned. The
human Insulin facility- one of the projects under our
product diversification initiatives, has been completed and
is expected to go for commercial operation in the first half
of 2018.
We performed well in the past year and I remain confident
that we are taking the right actions to grow and deliver
results for you in the coming years as well. Our adopted
strategies squarely fit to our goal to build Beximco Pharma
as one of the fastest growing companies in the region with
a strong presence in the global markets.
Finally, I must say we have got a highly dedicated, capable
and very sincere pool of employees. The achievement we
have made so far was only possible because of such a
talented team. I thankfully acknowledge their contribution
to the company. We are grateful to our shareholders
for extending, at all times, their invaluable support and
cooperation to bring the company to the level it has reached
today.
Thanking you
A S F Rahman
Chairman
46 I Annual Report 2016-17
l Chairman’s Statement
Chairman’s Statement l
Annual Report 2016-17 I 47
While continuing our penetration in the existing overseas markets, we have expanded our horizon and entered into seven new
markets and registered 71 products in 20 different countries during the year under review.
2.2 Gross and Net profit
During 2016-17, Profit before tax reach Taka 2,891.48 million which is an increase of 12.8% compared to the previous year.
Profit after tax increased by 14.8% to Taka 2,226.69 million. Despite the depreciation of Taka against the dollar, we managed
to maintain gross profit at 46.33% as against 46.49% of 2015-16.
3. Contribution to National Exchequer
During 2016-17, Beximco Pharma contributed Taka 3,525 million in the form of import related taxes, VAT and Income tax to the
national exchequer.
4. Overseas Joint Venture with BioCare Manufacturing, Malaysia
Beximco Pharmaceuticals has formed a joint venture (JV) with BioCare Manufacturing (M) Sdn Bhd based in Malaysia. Under the
terms of the JV, Beximco Pharma will provide full technical support to BioCare to set up manufacturing facilities in Seri Iskandar
Pharmaceutical Park, Perak, Malaysia and to produce specialized pharmaceutical products. The International standard metered
dose inhaler facilities planned in the first phase of the project has already been completed. As per terms, Beximco Pharmaceuticals
is to receive 30% of the equity shares in the JV Company and accordingly 600,000 ordinary Shares of BioCare having par value of
Malaysian Ringgit (RM) 1 each, has been issued to Beximco Pharma. BioCare will operate and fund the facility.
5. MOU for Acquisition of Majority Shareholdings in Nuvista Pharma
In October 2017, Beximco Pharma has entered into a non-binding Memorandum of Understanding under which Beximco Pharma
may acquire a majority shareholding in Nuvista Pharma.
The Board of Directors approved the proposed acquisition of up to 85.22% of the entire issued shares of the target company. The
proposed acquisition remains subject to due diligence and negotiation and completion of a definitive sale and purchase agreement.
An international consulting firm has been engaged to conduct the due diligence. It is anticipated that the proposed acquisition
would complete by the end of December 2017. The consideration for the Proposed Acquisition as finally agreed, shall be satisfied
in cash.
6. Change of Brokers
In October 2017, Northland Capital Partners Limited was appointed as sole broker to the company in compliance with the AIM
regulations to deal with the GDRs related transactions. Northland Capital replaced Daniel Stewart & Co.
Directors’ Report to the
Shareholders
Dear Shareholders,
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.
1. General Economic Overview
The Bangladesh economy continues to perform well with strong GDP growth, increased per capita income, stable inflation and
strong foreign exchange reserve. During the 2016-2017 financial year, the country achieved 7% plus growth in GDP; per capital
income rose to $1,602 from $1465; foreign currency reserve reached a record in excess of $33.4bn and the inflation rate remained
below 6%. Although the political environment remained calm and did not disrupt business activities, the country was affected
by flooding that resulted in a severe loss of paddy production. Following this event, the price of rice significantly increased and
is expected to remain high until next season. Increased food prices will trigger increases in inflation levels in the country in the
current fiscal year. Despite the strong reserve position, the Bangladeshi Taka weakened against the dollar. As of 30 June 2017, the
exchange rate for one US Dollar stood at Taka 80.59 compared to Taka 78.40 for the previous year.
The government’s supportive policy towards the pharmaceutical industry remains unchanged. The Bangladeshi government has
completed the development of an exclusive industrial park to accommodate API manufacturing facilities for pharmaceuticals
companies. Beximco Pharma has been allotted 654 decimals of land. Current tax policy allows reduced corporate tax for newly
established undertakings for a period of three to five years depending on the location of the industry. A 20% cash payback on export
of API is also available under the tax incentive scheme.
The government’s allocation to the health sector continues to remain at an insignificant level and has had little effect on the demand
for medicine. For the financial year 2017-18, Taka 161.82 billion has been allocated for the health sector, which is only 4.04% of
the country’s total budget. Given the small percentage of funding for the health sector, demand for pharmaceutical products in
Bangladesh is predominantly driven by the increased individual private spending. This is backed up by the higher economic growth
and equitable flow of income to the poorer people.
2. Sales and Profitability
2.1 Domestic and Export Sales
The company achieved a net domestic sales of Taka 14,430.30 million in 2016-17. This is an impressive 11.7% increase
over comparative prior period. We added 15 new products to our portfolio, four of which were launched for the first time in
the country. Each of our key therapeutic brands performed well and achieved growth that exceeded the market.
Along with domestic sales, our export also reached a record high registering a significant 25.2% growth over the previous
year to Taka 1,078.47 million in 2016-2017. The proportion of export sales to local sales is steadily increasing. Export now
accounts for 7.0% of our total sales.
Following the export of our first product, Carvedilol, to the US in August 2016, we have launched our second product, Sotalol
hydrochloride, in this market. Importantly, we have so far received approvals for four Abbreviated New Drug Applications
(ANDAs) from the US Food and Drug Administration (FDA), the most recent of which occurred in July 2017 with the approval
for our Methocarbamol tablets, further reinforcing our export opportunities in the US market. With the commencement of the
export of Olopatadine to Canada in September 2017, we have set yet another milestone.
48 I Annual Report 2016-17
l Directors’ Report to the Shareholders
Directors’ Report to the Shareholders l
Annual Report 2016-17 I 49
7. Profit and its Appropriation
We report the financial results of the Company for the year ended 30 June 2017 and recommend the appropriation as below:
July 1, 2016 to
June 30, 2017
(12 months)
2,226,695
11,757
10,330,267
12,568,719
-
-
(506,945)
12,061,774
Taka in Thousand
January 1, 2015 to
June 30, 2016
(18 months)
2,948,054
20,402
8,134,299
11,102,755
(193,122)
(386,244)
(193,122)
10,330,267
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
8. Dividend
The Board of Directors recommends 12.5% Cash Dividend i.e. Tk. 1.25 per share for the year ended 30 June, 2017 for onward
approval in the Annual General Meeting.
9. Retirement and Re-election of Directors
9.1 Directors
Mr. A S F Rahman and Mr. A B Siddiqur Rahman, 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.
Mr. A.S.F Rahman is the Chairman and founder of Beximco Group. He is a distinguished business personality of the country
and has received many awards and accolades for his outstanding contribution to Bangladesh’s industrial development.
Mr. Rahman was instrumental in introducing best-in-class corporate practice in Bangladesh and is widely credited as the
architect of Group’s successful global strategy.
He graduated with Honours in Physics from the University of Dhaka in 1966, and also studied in the United Kingdom. Mr.
Rahman held a number of key positions with many reputable organizations. He has served as Chairman of IFIC Bank Limited,
Director of Industrial Promotion & Development Company, Director of Arab Bangladesh Bank Limited, Director of Pubali Bank
Limited and Director of the Investment Corporation of Bangladesh.
In addition to being Chairman of Beximco Pharma, Mr. A.S.F Rahman is also the Chairman of other three listed companies
within the Beximco Group; Bangladesh Export Import Company Limited, Beximco Synthetics Limited and Shinepukur
Ceramics Limited.
Mr. A B Siddiqur Rahman has been in the Board since 1993. He holds senior positions at a number of entities within the
Beximco Group.
9.2 Independent Directors
As per the Code of Corporate Governance issued by Bangladesh Securities and Exchange Commission, an Independent
Director shall be appointed for a period of three years. They are however eligible to be reappointed for a further period of one
term only. Dr. Abdur Rahman Khan and Advocate Shah Monjurul Hoque completed their three years tenure as Independent
Directors of the Company on 12 March, 2017 and 2 November, 2017 respectively. As eligible candidates under the Code of
Corporate Governance, both have been re-appointed by the board for a further period of three years from the date of expiry
of their respective tenure of office.
Dr. Abdur Rahman Khan, currently the Chairman of the Audit Committee of the Company, is a senior and prominent physician
in Bangladesh. He is the Chief Consultant Physician and Professor of Medicine, BIRDEM; Chairman, Board of Management
of BIRDEM and Member of National Council of Diabetic Association of Bangladesh. He is a fellow of the Royal College of
Physicians of London and a fellow of the College of Physicians and Surgeons of Bangladesh. He is also a member of the
International Diabetes Federation and an honorary member of the Association of Military Surgeons, USA. He joined the
Bangladesh Army as a Commissioned Officer in the Army Medical Corps and retired as a Major General. He was an Advisor
to the Caretaker Government of Bangladesh and previously the Vice President of the Red Crescent and Red Cross society of
Bangladesh. He also holds a Bachelor of Medicine and Bachelor of Surgery (MBBS) (Calcutta) and is a Member of the Royal
College of Physicians (MRCP) (London and Glasgow).
Mr. Shah Monjurul Hoque is a practicing lawyer in the Supreme Court of Bangladesh, both in the High Court Division and
Appellate Division. He is the founder of Hoque & Associates, a law firm in Bangladesh, of which he is the Proprietor. Mr. Hoque
has held various academic appointments in the field of law and has also acted as legal adviser to a number of corporate
clients in Bangladesh and as an enlisted lawyer of several Bangladeshi banks.
10. Auditors
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 40th Annual General Meeting of the Company has carried out the audit for the
year ended 30 June 2017.
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 2017-18. The board after
due consideration of the proposal made by the Audit Committee recommends for reappointment of M. J. Abedin & Co., Chartered
Accountants as auditors for the year 2017-18.
11. Statement of Directors on Financial Reports
Directors are pleased to report the following:
• 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.
• Proper books of accounts of the Company have been maintained.
• 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.
• 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.
Internal Control System is sound in design and has been effectively implemented and monitored.
•
• There is no significant doubt about the ability of the Company to continue as a going concern.
12. 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 business transactions. The management is fully aware of risks and
follows standard procedures for appropriate management of the risk. Depending on the nature of the risk, strategic decisions are
taken to avoid, reduce, transfer or accommodate the risks arising in the business management process. Further detail on various
financial risks has been discussed in Note 48 of the financial statements.
13. Related Party Transaction
Related party transactions are carried out on an arm’s length basis. Audit committee while reviewing the financial statements
periodically carries out in-depth analysis of the transactions involving related parties. Note 35 of the financial statements provides
details of the transactions with the related party.
50 I Annual Report 2016-17
l Directors’ Report to the Shareholders
Directors’ Report to the Shareholders l
Annual Report 2016-17 I 51
14. Certification by the Managing Director and Chief Financial Officer
16. Board Meetings and Attendance
The 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 July 2016 to 30 June 2017 and to the best of their knowledge and belief:
• 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
• There is no statement which is materially untrue or misleading and there is no omission of facts in such statements
• No transaction has been entered into by the Company which are fraudulent, illegal or in violation of the Company’s code of conduct.
15. Key Operating and Financial Data
Twelve Board Meetings were held during the year 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
11
12
10
7
Salman F Rahman
Osman Kaiser Chowdhury
A B Siddiqur Rahman
Shah Monjurul Hoque
12
11
12
6
The summarized key operating and financial data for 2016-17 and immediately preceding five years are presented below:
Particulars
As on
17. The Pattern of Shareholding
Taka in Thousand
Name-wise details
Number of Shares held
Authorized Capital
Paid up Capital
Shareholders’ Equity
Fixed Assets (Gross)
June 30,
2017
June 30,
2016
December 31,
2014
December 31,
2013
December 31,
2012
December 31,
2011
9,100,000
4,055,564
25,072,426
31,692,789
9,100,000
3,862,442
23,059,412
28,756,326
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 Asset Value (NAV) Per Share - Taka
Market Price Per Share - Taka
Number of shareholders
Foreign Investors
ICB including ICB Investors Account
Sponsors, General Public & Other Institutions
62
113
62,741
92
874
61,775
60
83.50
67,679
83
878
66,718
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
3,833
3,515
3,063
2,897
2,748
2,670
Particulars
For the period / Year
July 2016 to
June 2017
July 2015 to
June 2016
Jan-Dec
2014
Jan-Dec
2013
15,508,777
1,078,472
7,184,882
2,891,482
2,226,695
13,785,325
861,653
6,408,857
2,564,267
1,938,894
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
Taka in Thousand
Jan-Dec
2012
9,289,115
470,116
4,389,401
1,909,829
1,319,389
Jan-Dec
2011
7,890,242
390,315
3,786,533
1,677,849
1,198,525
-
12.5%
5.49
20.58
5%*
15%*
4.78
17.47
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 - Taka
Price Earning Ratio (Times)
*Declared considering accounts for 18 months period.
(i)
Parent/Subsidiary/Associate Companies and Other Related Parties :
Beximco Holdings Ltd.
Bangladesh Export Import Company Ltd.
New Dacca Industries Ltd.
Beximco Engineering Ltd.
National Investment & Finance Company Ltd.
(ii) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer,
Head of Internal Audit and their Spouses and Minor Children:
ASF Rahman, Chairman
Salman F Rahman, Vice Chairman
Nazmul Hassan MP, Managing Director & CEO
Company Secretary, Spouse and Minor Children
Chief Financial Officer, Spouse and Minor Children
Head of Internal Audit, Spouse and Minor Children
(iii) Executives
22,634,287
2,899,933
9,405,234
877,460
1,149,545
8,235,353
8,254,632
13,325
-
-
-
(iv) Shareholders holding 10% or more voting interest in the Company:
-
18. Corporate Governance Compliance Report
In accordance with the requirement of the Securities and Exchange Commission Notification No SEC/CMRRCD/2006-158/134/
Admin/44, Report on “Corporate Governance Compliance” is annexed.
On behalf of the Board
A S F Rahman
Chairman
52 I Annual Report 2016-17
l Directors’ Report to the Shareholders
Directors’ Report to the Shareholders l
Annual Report 2016-17 I 53
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
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
-
√
√
√
√
√
√
√
-
√
-
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
54 I Annual Report 2016-17
l Corporate Governance Compliance Report
Corporate Governance Compliance Report l
Annual Report 2016-17 I 55
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
56 I Annual Report 2016-17
l Corporate Governance Compliance Report
Certificate on Compliance of Corporate Governance Guidelines l Annual Report 2016-17 I 57
Annual Report 2016-17 I 57
period. The board has however, re-appointed me for another three years effective from March 13, 2017 and has also approved
to continue as Chairman of the Audit Committee.
The term of office of Mr. Shah Monjurul Hoque- another member of the audit Committee, expired on November 2, 2017. The
Board in its meeting held on October 25, 2017 re-appointed him to continue for further three years. Both the appointments are
however, subject to approval of the Shareholders in the Annual General Meeting scheduled on December 23, 2017.
Other Reviews and Activities
The committee assessed and examined risk management process and internal control policies of the company. The financial
reporting process and the related compliance and disclosure issues also came up as matters of periodic review by the committee.
The senior management of the company from time to time on invitation attended various meetings of the audit committee to
apprise the members on various issues. 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.
Reviewing the Financial Statements
The Terms of Reference (TOR) of the Audit Committee set out as per Code of Corporate Governance prescribed by
Bangladesh Securities and Exchange Commission includes among others, 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.
The Audit Committee being a Standing Committee of the Board charged with oversight of financial reporting and disclosure
thoroughly reviewed annual and quarterly financial statements of the company prior to their submission to the board of
directors for approval.
The committee in its meeting held on October 19, 2017 reviewed the Annual Financial Statements for the year 2016-
2017. The draft audited accounts along with the report of the auditors were placed before the committee. The chief
financial officer briefed the committee on the financial performance of the company. Detailed discussions on the financial
statements were held with the representatives of the management of the company. As part of the review, the committee
also thoroughly examined the related party transactions that occurred during the reporting period. The committee was fully
satisfied that the transactions between the related parties were held in the normal course of business and on arm’s length
basis and adequate disclosure to that effect has been made in the financial statements. No material audit observation
that warrants the Board’s attention was noted. The Committee therefore, authorized for onward submission of the Audited
Financial Statements to the Board for approval.
The committee held three other meetings wherein the interim financial reports of the company were reviewed prior to their
onward submission to the board for approval. In each of the cases the committee held detailed discussion with the senior
management on various aspects of the financial statements to ensure accuracy, consistency and compliance of the reports
in all material respects.
External Auditor
The Committee after review made recommendation to the board on the appointment of the existing auditors M/S M J
Abedin & Company, Chartered Accountants for the year 2017-2018. The Board recommended their re-appointment subject
to the approval by the shareholders in the 41st Annual General Meeting.
Re-appointment of Members of the Committee
As per regulations, Independent Directors are appointed for a period of three years and are eligible for re-appointment
on expiry of the term. My tenure as Independent Director expired on March 12, 2017 due to completion of the three year
58 I Annual Report 2016-17
l Report on the Activities of the Audit Committee
Report on the Activities of the Audit Committee l
Annual Report 2016-17 I 59
Shareholders’ Meeting
The 40th Annual General Meeting (AGM) of the shareholders of Beximco Pharmaceuticals Limited was held on November 19,
2016 at Beximco Industrial Park, Saravo, Kashimpur, Gazipur. Mr. A S F Rahman, Chairman of the Company presided over the
meeting. All resolutions put before the shareholders were duly passed including the agenda of paying 5% final cash dividend,
5% stock dividend and 10% cash dividend (already paid as interim dividend) for the 18 months period ended June 30, 2016.
Performance of the company as well as future strategies were briefly discussed in the meeting. At the end of the meeting
Chairman expressed his appreciation towards shareholders for their interest in the company and their continued support.
Audit Committee Meeting
60 l Annual Report 2016-17 I Shareholders’ Meeting
60 I Annual Report 2016-17
Shareholders’ Meeting l Annual Report 2016-17 I 61
Annual Report 2016-17 I 61
40th Annual General Meeting
Value Added Statement
For the Year Ended June 30, 2017
Graphical View of
Selected Growth Indicators
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.
%
18,232,292
(8,858,703)
9,373,589
100
2,574,805
2,209,007
557,003
506,946
3,525,828
27%
24%
6%
5%
38%
9,373,589
100%
Taka in million
62 I Annual Report 2016-17
l Value Added Statement
Graphical View of Selected Growth Indicators l
Annual Report 2016-17 I 63
Independent Auditors’ Report
To The Shareholders of
Beximco Pharmaceuticals Limited
Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2017
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 June 30, 2017 the Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in Equity
and Statement of Cash Flows for the year from July 1, 2016 to June 30, 2017 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 2017, and of its
financial performance and its cash flows for the year 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.
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;
Notes
June 30, 2017
June 30, 2016
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
Unrealized Gain/(Loss)
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
19
20
21
22
24,953,316,701
24,472,468,013
462,968,347
17,880,341
9,130,816,169
3,468,089,061
636,102,892
2,167,339,867
1,697,679,418
886,576,906
275,028,025
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
34,084,132,870
31,148,907,975
25,072,425,900
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,190,203,818
3,875,065
12,568,719,969
5,605,667,422
2,635,907,025
1,117,094,429
1,852,665,968
3,406,039,548
1,239,757,995
715,790,200
783,838,444
245,375,014
353,217
420,924,678
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
(c) the Statement of Financial Position ( Balance Sheet) and Statement of Profit or Loss and other Comprehensive Income (Profit and
TOTAL EQUITY AND LIABILITIES
34,084,132,870
31,148,907,975
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.
Dhaka
October 25, 2017
M.J. Abedin & Co.
Chartered Accountants
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2017 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 25, 2017
Ali Nawaz
Chief Financial Officer
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
64 I Audit Report 2016-17
l Independent Auditors’ Report
Statement of Financial Position l
Audit Report 2016-17 I 65
Beximco Pharmaceuticals Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2017
Beximco Pharmaceuticals Limited
Statement of Changes in Equity
For the Year ended June 30, 2017
Amount in Taka
Notes
July 2016 -
June 2017
(12 Months)
January 2015 -
June 2016
(18 Months)
January -
June 2016
(6 Months)
January -
December 2015
(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
23
24
27
28
29
30
15,508,776,972
(8,323,895,349)
7,184,881,623
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
(3,736,675,551)
(522,396,449)
(3,214,279,102)
3,448,206,072
(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
144,852,831
(557,003,162)
3,036,055,741
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
Contribution to WPPF & Welfare Funds
31
(144,574,083)
(182,891,896)
(66,035,393)
(116,856,503)
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profit after Tax for the Period
Other Comprehensive Income - Unrealized Gain/(Loss)
Total Comprehensive Income for the Period
Earnings Per Share (EPS) / Adjusted EPS
32
33
34
(664,786,534)
(591,982,589)
(72,803,945)
2,226,695,124
2,579,507
2,229,274,631
(709,784,075)
(736,140,227)
26,356,152
2,948,053,854
(1,013,093)
2,947,040,761
(326,938,528)
(310,173,315)
(16,765,213)
993,769,338
(661,955)
993,107,383
(382,845,547)
(425,966,912)
43,121,365
1,954,284,516
(351,138)
1,953,933,378
5.49
7.27
2.45
4.82
Number of Shares used to compute EPS
405,556,445
405,556,445
405,556,445
405,556,445
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2017 and signed for and on behalf of the Board :
Share
Capital
3,862,442,340
193,122,110
Share Excess of Issue
Premium Price over Face
Value of GDRs
1,689,636,958
5,269,474,690
-
-
-
-
-
-
-
-
-
-
Capital
Reserve on
Merger
Revaluation
Surplus
Unrealized
Gain /
(Loss)
Amount in Taka
Retained
Earnings
Total
294,950,950 1,225,100,042
1,295,558 10,716,511,871 23,059,412,409
-
- 2,579,507
- 2,226,695,124
-
2,226,695,124
2,579,507
-
-
-
(193,122,117)
(193,122,117)
-
(193,122,110)
-
-
-
(11,757,201)
-
11,757,201
-
4,055,564,450
-
5,269,474,690
-
1,689,636,958
(23,139,023)
294,950,950 1,190,203,818
-
-
-
(23,139,023)
3,875,065 12,568,719,969 25,072,425,900
405,556,445
61.82
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
-
- (1,013,093)
- 2,948,053,854
-
2,948,053,854
(1,013,093)
-
183,925,820
-
-
-
-
(754,095,886)
(183,925,820)
(754,095,886)
-
-
-
(20,402,482)
-
20,402,482
-
3,862,442,340
-
5,269,474,690
-
1,689,636,958
(53,717,791)
294,950,950 1,225,100,042
-
-
-
(53,717,791)
1,295,558 10,716,511,871 23,059,412,409
386,244,234
59.70
Balance as on July 01, 2016
Total Comprehensive
Income for the Year :
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with
the Shareholders:
5% Final Cash Dividend
(January 2015 to June 2016)
5% Stock Dividend
(January 2015 to June 2016)
Adjustment for Depreciation
on Revalued Assets
Adjustment for Deferred Tax
on Revalued Assets
Balance as on June 30, 2017
Number of Shares
Net Asset Value (NAV) Per Share
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 for 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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Profit Before Tax
2,891,481,658
3,657,837,929
1,320,707,866
2,337,130,063
For 18 Months Period ended January 1, 2015 - June 30, 2016
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Per our report of even date.
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2017 and signed for and on behalf of the Board :
Dhaka
October 25, 2017
M. J. Abedin & Co.
Chartered Accountants
Dhaka
October 25, 2017
Ali Nawaz
Chief Financial Officer
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
66 I Audit Report 2016-17
l Statement of Profit or Loss and Other Comprehensive Income
Statement of Changes in Equity l
Audit Report 2016-17 I 67
Beximco Pharmaceuticals Limited
Statement of Cash Flows
For the Year ended June 30, 2017
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
Net Increase/(Decrease) in Short Term Borrowings
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
July 2016 -
June 2017
(12 Months)
15,028,477,642
(11,480,328,595)
3,548,149,047
(557,003,162)
161,110,825
(518,291,724)
2,633,964,986
(3,016,391,390)
(108,998,404)
22,059,127
1,427,955
552,460,907
(2,549,441,805)
32,424,297
130,113,725
(193,154,407)
(30,616,385)
53,906,796
221,121,229
275,028,025
Amount in Taka
January 2015 -
June 2016
(18 Months)
19,756,621,890
(15,204,763,705)
4,551,858,185
(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
Net Operating Cash Flow Per Share
6.49
8.21
Number of Shares used to compute Net Operating Cash Flow Per Share
405,556,445
386,244,234
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2017 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 25, 2017
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 year ended June 30, 2017
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 year June 30, 2017;
(b) a Statement of Profit or Loss and Other Comprehensive Income for the year ended June 30, 2017;
(c) a Statement of Changes in Equity for the year ended June 30, 2017;
(d) a Statement of Cash Flows for the year ended June 30, 2017; and
(e) notes, comprising summary of significant accounting policies and explanatory information.
2.4 Reporting Period and Comparative Information
The Financial statements cover 12 months period starting from July 1, 2016 to June 30, 2017. The last audited financial
statements were prepared for a period of 18 months ending June 30, 2016 as per direction of Bangladesh Securities
and Exchange Commission (BSEC) to facilitate the adoption of reporting period of July to June in compliance to the
requirement of the National Board of Revenue (NBR).
Therefore the financial statements for the current year (July 1, 2016 to June 30, 2017) are not entirely comparable.
Figures for earlier periods have been re-arranged wherever considered necessary to ensure better comparability with the
current year.
68 I Audit Report 2016-17
l Statement of Cash Flows
Notes to the Financial Statements l
Audit Report 2016-17 I 69
2.5 Authorisation for issue
The financial statements have been authorised for issue by the Board of Directors October 25, 2017.
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.
Revenue from sales is exclusive of VAT.
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%
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.
3.5.1(a) Accounts Receivable
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
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.
3.6
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.
70 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 71
(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 Profit
or Loss and Other 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 year, 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.
3.10
3.11
3.12
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:
(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.
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.
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 year.
Current year (July 2016 to June 2017)
The Bonus Shares issued during the current year were treated as if they always had been in issue. Hence, in computing
the Basic EPS of Current year, the total number of shares including the said bonus shares has been considered as the
Weighted Average Number of Shares outstanding during the Current year.
Earlier Periods
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 periods reported ,and
accordingly, in calculating the adjusted EPS of earlier periods, the total number of shares including the subsequent
bonus issued in current year has been considered as the Weighted Average number of Shares outstanding during the
earlier periods. The basis of computation of number of shares as stated above is in line with the provisions of IAS 33:
Earnings per Share. The logic behind this basis, as stated in the said IAS is that the bonus Shares are issued to the
existing shareholders without any consideration, and therefore, the number of shares outstanding is increased without
an increase in resources.
72 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 73
Diluted Earnings per Share
No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review.
3.16
Foreign Currency Transactions
Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date.
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.
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 The 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.
4 (a). Property, Plant and Equipment
As on June 30, 2017
Particulars
Cost
At July 01, 2016
Additions
Transferred in & Capitalized
Disposal during the Year
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Amount in Taka
Office
Equipment
Total
3,343,741,442
-
-
-
6,712,175,196
17,398,437
61,530,227
-
11,324,017,693
272,763,088
481,524,220
(46,280,682)
217,643,441
17,467,673
-
(9,694,209)
700,012,107
81,215,320
-
(7,723,530)
502,149,436
29,015,760
-
(16,230,014)
22,799,739,315
417,860,278
543,054,447
(79,928,435)
Cost at June 30, 2017
3,343,741,442
6,791,103,860
12,032,024,319
225,416,905
773,503,897
514,935,182
23,680,725,605
Accumulated Depreciation
At July 01, 2016
Depreciation Charged
Adjustment for Assets disposed off
Accumulated Depreciation
at June 30, 2017
-
-
-
1,457,270,234
163,136,282
-
4,311,357,470
484,468,330
(29,045,316)
85,738,805
12,982,614
(7,615,710)
382,120,522
63,234,970
(6,006,797)
283,946,306
32,138,964
(13,405,593)
6,520,433,337
755,961,160
(56,073,416)
-
1,620,406,516
4,766,780,484
91,105,709
439,348,695
302,679,677
7,220,321,081
Net Book Value June 30, 2017
3,343,741,442
5,170,697,344
7,265,243,835
134,311,196
334,155,202
212,255,505
16,460,404,524
Capital Work in Progress
Carrying Value as on June 30, 2017
8,012,063,489
24,472,468,013
Assets include leasehold assets of Tk. 1,318,330,554 at cost and Tk.1,011,423,637 at carrying value.
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
3,343,741,442
-
-
-
6,410,090,320
154,933,066
147,151,810
-
10,573,115,701
499,981,926
257,977,765
(7,057,699)
197,001,369
37,334,604
254,013
(16,946,545)
596,845,504
107,098,489
-
(3,931,886)
390,013,667
118,553,280
3,298,860
(9,716,371)
21,510,808,003
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
-
-
-
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
(11,988,652)
92,584,435
(2,531,542)
36,711,350
(8,183,994)
1,124,208,315
(29,224,737)
-
1,457,270,234
4,311,357,470
85,738,805
382,120,522
283,946,306
6,520,433,337
Net Book Value June 30, 2016
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
Capital Work in Progress
Carrying Value as on June 30, 2016
5,956,586,824
22,235,892,802
74 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 75
Capital Work in Progress is arrived at as follows :
Amount in Taka
Opening Balance at beginning of the period
Addition during the period
Transferred & Capitalized
Building and Other Constructions
Plant & Machinery
Furniture & Fixture
Office Equipment
June 30, 2017
June 30, 2016
5,956,586,824
2,598,531,112
8,555,117,936
(543,054,447)
(61,530,227)
(481,524,220)
-
-
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)
Closing balance at end of period
8,012,063,489
5,956,586,824
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
1,225,100,042
(11,757,201)
(23,139,023)
1,190,203,818
1,299,220,315
(20,402,482)
(53,717,791)
1,225,100,042
5. Intangible Assets
Product development, Licensing and
Marketing Rights
ERP Project *
Other Software
Balance
July 01, 2016
288,628,060
90,562,143
1,070,326
380,260,529
Addition
during the Year
Amortized
during the year
Balance
June 30, 2017
81,866,897
27,131,507
-
108,998,404
(25,220,260)
(1,070,326)
(26,290,586)
345,274,697
- 117,693,650
-
462,968,347
* The Company is implementing ERP solution across the organization. The first phase of the project is expected to be completed
by December 31, 2017.
6. Investment in Shares
(a)
Investment Details (Taka) :
Opening
July 01, 2016
Addition/ Adjustment during the Year
Fair Value Gain/(Loss)
New Investment
Closing
June 30, 2017
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
(iii) Biocare Manufacturing SDN.BHD.,
Malaysia- note (e)
3,177,384
1,569,450
-
-
1,953,407
-
5,130,791
1,569,450
-
4,746,834
10,554,000
10,554,000
626,100
2,579,507
11,180,100
17,880,341
(b) Number of Shares:
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
(iii) Biocare Manufacturing SDN.BHD.,
Malaysia- note (e)
Opening
July 01, 2016
Addition/ Adjustment during the Year
New Investment
Stock Dividend
Closing
June 30, 2017
132,391
571,182
-
-
19,858
-
152,249
571,182
-
600,000
-
600,000
(c) 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 year was Tk. 33.70 in both Dhaka and
Chittagong Stock Exchange Ltd.
(d) Shares of Central Depository Bangladesh Ltd. are not traded .
(e) Biocare Manufacturing SDN.BHD., Malaysia : Beximco Pharmaceuticals Ltd. has formed a joint venture (“JV”) with Biocare
Manufacturing SDN. BHD (“Biocare”) based in Malaysia. Under the terms of the JV, Beximco Pharma will provide full
technical support to Biocare to set up manufacturing facilities in Seri Iskandar Pharmaceutical Park, Perak, Malaysia and
to produce specialized pharmaceutical products. Beximco Pharmaceuticals will receive 30% of the equity shares in the JV
company. Accordingly, Beximco Pharmaceuticals has been issued 600,000 ordinary Shares of Biocare having par value of
Malaysian Ringgit (RM) 1 each.
7.
Inventories
Finished Goods
Work in Process
Raw Materials
Packing Materials
Laboratory Chemicals
Physician Samples
Materials in Transit
8. Spares & Supplies
Spares & Accessories
Stock of Stationery
Literature & Promotional Materials
9. Accounts Receivable
Amount in Taka
June 30, 2017
June 30, 2016
648,654,846
110,263,528
1,078,181,712
666,980,097
464,291
93,819,210
869,725,377
3,468,089,061
639,923,877
194,155,965
792,484,516
459,631,224
338,991
127,674,561
556,122,541
2,770,331,675
521,797,051
8,784,791
105,521,050
636,102,892
495,625,730
11,624,684
107,355,698
614,606,112
This includes receivable of Tk. 289,820,128 equivalent to US$ 3,618,229 as on 30 June 2017 (on 30-06-2016 Tk. 107,075,699
equivalent to US$ 1,372,765) against export sales.
This also includes Tk. 1,730,967,045 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 year was Tk. 1,730,967,045 on June 30, 2017.
Part of the export sales receivables are against Letter of Credit while the rest 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.
76 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 77
10. Loans, Advances and Deposits
13. Issued Share Capital
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
June 30, 2017
June 30, 2016
95,439,989
210,808,752
19,221,466
45,208,648
18,069,093
110,361,635
122,591,882
8,487,574
101,975,696
14,821,748
166,342,342
469,339,126
221,417,599
24,780,081
68,813,787
1,697,679,418
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
(a)
(b)
(c)
(d)
The maximum amount due from the employees during the year was Tk. 122,361,135 on 31 March, 2017.
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.
No amount was due from any related party.
Prepaid expense includes the insurance premium paid to German Export Credit Agency Euler Hermes Aktiengesellschaft,
Hamburg for guarantee of the loan which is an integral part of the overseas loan financing agreement with ODDO BHF
Aktiengesellshaft, Frankfurt, Germany. Expired prepaid insurance has been capitalized.
11. Short Term Investment
This represents the Company’s temporary investment with Bangladesh Export Import Company Limited (Beximco Ltd.), carrying
interest 1% above bank interest rate. This investment is returnable as and when required by the Company.
12. Cash and Cash Equivalents
A. Authorized :
500,000,000 Ordinary Shares of Tk. 10/- each
41,000,000 Fully Convertible, 5% 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
316,538,298 Bonus Shares (as on June 2016: 297,226,087) 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
June 30, 2017
June 30, 2016
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
3,165,382,980
517,757,500
2,972,260,870
59,512,500
312,911,470
4,055,564,450
59,512,500
312,911,470
3,862,442,340
The movement of Ordinary Shares during the Year ended June 30, 2017 is as follows :
Balance as on July 01, 2016
Bonus Shares issued during the year
Balance as on June 30, 2017
C. Composition of Shareholding of Ordinary Shares:
Number of Shares
386,244,234
19,312,211
405,556,445
Amount in Taka
3,862,442,340
193,122,110
4,055,564,450
June 30, 2017
June 30, 2016
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
8,235,353
8,254,632
36,979,784
168,084,988
46,191,780
137,809,908
405,556,445
2.03
2.04
9.12
41.45
11.39
33.98
100
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
Amount in Taka
D. Distribution Schedule of Ordinary Shares:
Cash in Hand (including Imprest Cash)
(a)
(b) Cash at Bank :
(i) Current & FC Account
(ii) FDR Account
June 30, 2017
June 30, 2016
107,253,933
2,812,238
134,814,500
32,959,592
275,028,025
186,824,492
31,484,499
221,121,229
Range of Holdings
In number of shares
No. of Shareholders
June 30,
June 30,
2017
2016
% of Shareholders
June 30,
June 30,
2016
2017
Number of Shares
June 30,
2017
June 30,
2016
% of Share Capital
June 30,
June 30,
2016
2017
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
46,907
13,387
1,132
576
183
84
82
166
183
41
50,793 74.76%
14,375 21.34%
1.80%
1,184
0.92%
613
0.29%
201
0.13%
86
0.13%
82
0.26%
150
0.29%
167
0.07%
28
1.75%
6,768,689
75.05%
5.42%
20,930,046
21.24%
2.19%
8,441,882
1.75%
2.25%
8,685,273
0.91%
1.30%
5,007,247
0.30%
0.78%
3,010,665
0.13%
0.97%
3,756,886
0.12%
10,505,997
2.72%
0.22%
0.25%
47,746,257 13.23% 12.36%
0.04% 285,853,127 271,391,292 70.48% 70.26%
6,389,847
19,743,510
8,165,206
8,339,317
4,615,416
2,954,786
3,772,353
12,083,693
53,639,190
1.58%
4.87%
2.01%
2.06%
1.14%
0.73%
0.93%
2.98%
78 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 79
Total
62,741
67,679
100%
100%
405,556,445 386,244,234
100%
100%
E. Market Price of Ordinary Shares :
16. Liability for Gratuity and WPPF & Welfare Funds
The shares are listed in the Dhaka and Chittagong Stock Exchanges of Bangladesh and GDRs in the AIM of London Stock
Exchange. Price of each Share/GDRs on the last working day of the year were:
Dhaka Tk.
Chittagong Tk.
GBP
AIM
113.00
113.00
0.6050
83.50
83.00
0.2937
June 30, 2017
June 30, 2016
F. Option on unissued Ordinary Shares :
There was no option on unissued shares as on 30.06.2017.
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)
Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
(a)
(b) Obligation Under Finance Leases
(c) AB Bank
Amount in Taka
June 30, 2017
June 30, 2016
1,167,114,340
350,296,702
1,118,495,983
2,635,907,025
469,408,422
412,250,396
1,484,347,781
2,366,006,599
(a) Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
This represents part of the foreign currency loan of US$ 51.559 million sanctioned by ODDO BHF 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 is disbursable in phases upon shipment of the Machinery and Equipment. It 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.
(b ) Obligation Under Finance Leases
Gross Finance Lease - minimum lease Liability:
Within one year
Within two to five years
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
June 30, 2017
June 30, 2016
238,426,406
413,213,083
651,639,489
(132,529,673)
519,109,816
242,977,536
513,274,630
756,252,166
(186,621,695)
569,630,471
168,813,114
350,296,702
519,109,816
157,380,075
412,250,396
569,630,471
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
Provisions during the Period
Paid during the period
Closing balance
Amount in Taka
June 30, 2017
June 30, 2016
445,226,921
100,578,000
545,804,921
(16,239,621)
337,652,786
128,134,755
465,787,541
(20,560,620)
529,565,300
445,226,921
(b) Workers Profit Participation and Welfare Fund
587,529,129
538,971,538
17. Deferred Tax Liability
Opening Balance
Addition during the Period:
Deferred Tax on Assets (cost basis)-Note : 32
Deferred Tax on revalued amount
Closing balance
18. Short Term Borrowings (Secured)
Janata Bank Ltd. - Cash Credit-Hypothecation Loan
1,117,094,429
984,198,459
1,756,723,000
1,729,361,361
72,803,945
23,139,023
1,852,665,968
(26,356,152)
53,717,791
1,756,723,000
1,239,757,995
1,239,757,995
1,109,644,270
1,109,644,270
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 - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
(c) Obligation Under Finance Leases
(d) AB Bank
96,418,429
84,706,841
168,813,114
365,851,816
715,790,200
444,621,118
41,054,236
157,380,075
277,333,102
920,388,531
(a) Project Loan - Local Banks
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 ODDO BHF Aktiengesellshaft, Frankfurt, Germany.
(iii) This Loan, carrying interest at 13% per annum, is repayable in quarterly installments ending by 2017.
80 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 81
20. Creditors and Other Payables
24. Cost of Goods Sold
Goods & Services
Provident Fund
Advance Against Sales
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 year’s expense (net off interim payments)
22. Income Tax Payable
Opening Balance
Provision for the period
Short / (Excess) Provision for previous period
AIT & Treasury deposits during the period
23. Net Sales Revenue
Amount in Taka
June 30, 2017
June 30, 2016
386,554,880
275,950,713
57,922,126
63,410,725
783,838,444
144,676,791
248,809,046
9,097,700
51,245,075
453,828,612
102,140,931
85,051,382
143,234,083
245,375,014
66,035,393
151,086,775
347,233,813
627,764,437
(35,781,848)
939,216,402
(518,291,724)
420,924,678
368,339,391
766,053,375
(29,913,148)
1,104,479,618
(757,245,805)
347,233,813
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
Local Sales
Export *
14,430,304,971
1,078,472,001
15,508,776,972
18,806,149,764
1,228,352,828
20,034,502,592
6,682,982,389
386,013,330
7,068,995,719
12,123,167,375
842,339,498
12,965,506,873
* Export Equivalent US$
$13,672,099
$15,809,891
$4,948,889
$10,861,002
Sales represents:
Quantity
Product Category
Unit
Million pcs.
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable and Inhaler Million pcs.
Diet Care Products
Active Pharmaceutical Ingredients
Liquid Nitrogen
Pcs
Kg
Liter
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
4,008.10
5,308.62
1,913.93
3,394.69
87.65
36,193
177,737
388,917
121.46
16,069
282,789
725,260
45.80
10,157
113,953
241,505
75.66
5,912
168,836
483,755
Amount in Taka
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
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
194,155,965
156,136,258
171,815,679
6,126,293,944
8,002,141,393 2,822,057,040
5,180,084,353
1,961,557,021
3,005,938,728 1,044,381,707
2,287,126,449
8,607,576,358 11,179,895,800 4,022,575,005 7,313,457,053
(156,136,258)
(110,263,528)
(194,155,965)
(194,155,965)
7,157,320,795
8,497,312,830 10,985,739,835 3,828,419,040
633,692,189
696,097,273
9,137,236,707 11,619,432,024 4,524,516,313 7,791,012,984
(129,748,007)
(164,686,512)
(648,654,846)
(696,097,273)
6,965,167,704
8,323,895,349
(49,442,782)
(639,923,877)
10,800,317,358 3,835,149,654
(179,190,789)
(639,923,877)
633,692,189
639,923,877
Item wise quantity and value of Finished Goods Stock are as follows :
Stock as July 01, 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
Unit
Million pcs.
Million pcs.
Kg
Pcs
Quantity
370.24
Value (Tk.)
351,741,050
6.85
7,029
30,535
257,318,388
18,650,439
12,214,000
639,923,877
Stock as June 30, 2017
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.
372.34
359,671,620
Million pcs.
Kg
Pcs
6.80
11,336
4,094
258,260,476
28,958,108
1,764,642
648,654,846
25. Materials Consumed
Opening Stock
Purchase
Closing Stock
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
January-
June 2016 December 2015
(12 Months)
(6 Months)
1,252,454,731
6,619,465,313
(1,745,626,100)
6,126,293,944
1,062,093,352
8,192,502,772
(1,252,454,731)
8,002,141,393
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
82 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 83
26. Factory Overhead
28. Selling, Marketing and Distribution Expenses
Salary & Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Advertisement
Registration & Renewals
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
Amount in Taka
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
723,627,956
189,600,074
18,389,627
3,003,485
74,602
11,136,097
7,337,312
1,622,407
236,318,682
20,824,317
8,054,456
201,710,308
129,746,397
6,230,654
24,852,026
684,144,850
20,453,199
2,287,126,449
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
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk.13,816,768.
(b) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other
infrastructures. Also included therein imported stores and spares amounting to Tk. 71,280,238 that has been consumed
during the year.
(c) Other expenses does not include any item exceeding 1% of total revenue.
27. Administrative Expenses
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
Board Meeting Attendance Fee
Other Expenses
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
268,697,454
10,340,260
44,592,453
4,749,077
24,757,331
5,588,149
4,333,150
1,500,000
5,747,696
11,520,307
7,499,601
35,852,501
318,031
7,038,537
26,458,640
268,338
63,134,924
522,396,449
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
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk.6,032,953.
(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.
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
Sales & Market Promotion Expenses
Pharmacovigilance
Literature/News Letter
Registration & Renewals
Export Insurance, Freight and C&F Expenses
Delivery Expense
Depreciation & Amortization
Other Expenses
Amount in Taka
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
1,072,107,395
70,979,649
7,877,136
399,446,059
46,529,440
35,775,940
15,623,145
9,046,220
43,233,034
88,446,315
23,542,254
254,732,956
408,729,153
11,585,795
132,709,374
51,017,650
55,435,614
391,488,936
71,648,256
24,324,781
3,214,279,102
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
580,522,595
8,636,911
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
195,589,364
2,176,918
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
384,933,231
6,459,993
110,063,876
39,670,047
45,597,520
340,478,743
58,965,313
18,912,345
2,700,703,578
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk.23,954,297.
(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 dispatch expense.
29. Other Income
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
January-
June 2016 December 2015
(12 Months)
(6 Months)
Interest on FDR & Short term Investment
Dividend Income
Royalty
Technology Transfer Income -Biocare
Manufacturing SDN. BHD., Malaysia*
Exchange Rate Fluctuation Gain / (Loss)**
Profit/(Loss) on Sale of Fixed Assets (Note 36)
161,110,825
1,427,955
-
404,847,333
1,427,955
10,634,016
100,525,928
-
-
304,321,405
1,427,955
10,634,016
10,554,000
(26,444,057)
(1,795,892)
144,852,831
-
(5,406,570)
1,156,189
412,658,923
-
379,817
74,852
100,980,597
-
(5,786,387)
1,081,337
311,678,326
*Technology Transfer Income represents equity share received from Biocare Manufacturing SDN. BHD., Malaysia to set up
manufacturing facility and to produce specialized pharmaceuticals product under Joint Venture collaboration.
**This is net off exchange rate fluctuation loss amounting Tk. 32,877,798 on account of outstanding foreign currency loan from
ODDO BHF Aktiengesellshaft, Frankfurt, Germany translated at exchange rate prevailing on Balance Sheet date.
84 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 85
30. Finance Cost
35. Related Party Disclosures
Amount in Taka
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
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
303,316,773
13,904,256
111,145,912
107,554,563
21,081,658
557,003,162
588,417,111
152,835,514
149,565,303
98,800,975
40,563,498
1,030,182,401
166,656,402
35,067,043
71,030,756
37,698,000
10,759,966
321,212,167
421,760,709
117,768,471
78,534,547
61,102,975
29,803,532
708,970,234
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
(a) Current Tax
July 2016-
June 2017
(12 Months)
January 2015-
June 2016
(18 Months)
January-
June 2016
(6 Months)
January-
December 2015
(12 Months)
(i) Tax provision for current period (Note 3.9)
(ii) Short/(Excess) Provision for earlier period
627,764,437
(35,781,848)
591,982,589
766,053,375
(29,913,148)
736,140,227
310,173,315
-
310,173,315
455,880,060
(29,913,148)
425,966,912
(b) Deferred Tax Expense / (Income) 72,803,945
664,786,534
(26,356,152)
709,784,075
16,765,213
326,938,528
(43,121,365)
382,845,547
33. Other Comprehensive Income- Unrealized Gain/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
Exchange Rate Fluctuation Gain on-
Investment in Biocare Manufacturing
1,953,407
(1,013,093)
(661,955)
(351,138)
626,100
2,579,507
-
(1,013,093)
-
(661,955)
-
(351,138)
34. Earnings Per Share (EPS)
(a) Earnings attributable to the Ordinary-
Shareholders Tk.
(b) Weighted average number of Ordinary Shares-
outstanding during the year (Note 3.15) Nos.
2,226,695,124
2,948,053,854
993,769,338
1,954,284,516
405,556,445
405,556,445
405,556,445
405,556,445
Earnings Per Share (EPS) / Adjusted EPS Tk.
5.49
7.27
2.45
4.82
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties
Nature of Transactions
Value of Transaction Balance at year end
(a) I & I Services Ltd.
Local Delivery
Distribution Commission
16,340,168,784
218,636,233
1,730,967,045
-
(b) Bangladesh Export Import Co. Ltd. Short Term Investment & Interest there on
552,460,907
886,576,906
The Companies are subject to common control from same source.
36. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the year ended June 30, 2017:
Particulars of
Assets
Cost Accumulated
Depreciation
Written
Down Value
Sales
Price
Profit /
(Loss)
Mode of
Disposal
Name of
Parties
Office Equipment
Plant & Machinery
Furniture & Fixture
Transport & Vehicle
Tk.
16,230,014
46,280,682
9,694,209
7,723,530
79,928,435
405,245 (2,419,176) Negotiation Various Individuals
13,405,593
2,824,421
(412,513) Negotiation Various Individuals
29,045,316 17,235,366 16,822,853
(105,479) Negotiation Various Individuals
2,078,499 1,973,020
7,615,710
6,006,797
1,716,733 2,858,009 1,141,276 Negotiation Various Individuals
56,073,416 23,855,019 22,059,127 (1,795,892)
37. 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
Total
Amount in Taka
July 2016 - June 2017
203,028,198
7,565,950
9,037,540
22,697,850
5,935,390
6,095,629
254,360,557
(b) The above includes salary, allowances, and perquisites amounting Tk. 40,697,939 paid to the Managing Director.
(c) This also includes Tk. 268,338 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
rendered.
86 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 87
38. Production Capacity and Utilization
45. Commission / Brokerage to selling agent :
Item
Unit
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable and Inhaler Million Pcs
Million Pcs
Production Capacity
Actual Production
Capacity Utilization
July 16 to
June 17
(12 Months)
2015
(12 Months)
July 16 to
June 17
(12 Months)
2015
(12 Months)
July 16 to
June 17
(12 Months)
2015
(12 Months)
4,241.14 4,160.90 4,140.72
3,664.47
97.63%
88.07%
100.71
94.46
87.81
75.90
87.19%
80.35%
Production does not include goods manufactured under contract manufacturing arrangement from third parties manufacturing
sites.
39. Capital Expenditure Commitment
There was no capital expenditure contracted but not incurred or provided for at June 30, 2017.
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.
46. 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 guarantee favoring
Standard Bank Ltd. Dhanmondi Branch for Beximco Engineering Limited.
40. Finance Lease Commitment
47. Events after The Reporting Period
At June 30, 2017 the company had annual commitment under finance leases as set out below :
Leases expiring within 1 year
Leases expiring within 2-5 years (inclusive)
168,813,114
350,296,702
Tk. 519,109,816
41. Claim not Acknowledged as Debt
There was no claim against the company not acknowledged as debt as on June 30, 2017.
42. Un-availed Credit Facilities
The company has an un-availed foreign currency project loan facility of US$ 35.232 million sanctioned by ODDO BHF
Aktiengesellshaft, Germany to partially finance the machinery and equipment procured for expansion and diversification project
being implemented by the company.
43. Payments Made in Foreign Currency :
Foreign Currency (Equivalent US$)
Taka
Import of Machinery, Equipment’s & Spares
Import of Raw & Packing Material
Regulatory Fees, Foreign Currency Loan -
repayment & Other Expenses
10,541,961
39,906,053
3,962,532
840,166,621
3,218,024,116
317,480,421
44. Foreign Exchange Earned / Received :
(a) Collection from Export Sales
(b) Loan from ODDO BHF Aktiengesellshaft, Germany
11,301,661
9,756,277
884,816,379
776,188,925
Foreign Currency (Equivalent US$)
Taka
The directors recommended 12.5% cash dividend (i.e. Tk. 1.25 per share) for the year 2016-17. The dividend proposal is subject
to shareholders’ approval at the forthcoming annual general meeting.
Beximco Pharmaceuticals Ltd. has entered in to a nonbinding Memorandum of Understanding (MoU) under which the company
may acquire a majority shareholding in Nuvista Pharma, a leading Pharma Company in Bangladesh specialising in Hormones
and Steroid drugs. The proposed acquisition remains subject to due diligence and negotiation and completion of a definitive
Sales and Purchase Agreement.
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.
48. Financial Risk Management
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
48.01 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 2017 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.
48.02 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.
88 I Audit Report 2016-17
l Notes to the Financial Statements
Notes to the Financial Statements l
Audit Report 2016-17 I 89
48.03 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.
Dhaka
October 25, 2017
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
90 I Audit Report 2016-17
l Notes to the Financial Statements
#
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 41st Annual General
Meeting of the Company to be held on Saturday, the 23rd December, 2017 at 10.00 a.m. at Beximco Industrial Park, Sarabo, Kashimpur,
Gazipur and at any adjournment thereof.
As witness my/our hand this ___________ __________________ ___________ day of December, 2017.
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 41st Annual General Meeting being held on 23rd December, 2017 at 10.00
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 2016-17 I 91
______________________
Signature(s) of Shareholder(s)
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
Legal Advisor
Rafique-ul Huq
Barrister-at-Law
47/1 Purana Paltan
Dhaka-1000, Bangladesh
Corporate Headquarters
Auditors
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
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
Northland Capital Partners Limited
60 Gresham Street, 4th Floor
London, EC2V 7BB
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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