A Company’s
Achi evement
A Country’s
Pride
2018
Annual Report | 2017-18
SCRIP Award is among the most prestigious accolades in pharma and biotech
industry recognizing the highly successful companies and individuals for
their important roles in improving healthcare around the world.
Annual Report
2017-18
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
Audit Committee
Executive Committee
Management Committee
Key Events in History
Managing Director’s Statement
2017-18 Highlights
Post Period Highlights
Acquisition of Nuvista Pharma
Our Manufacturing Capabilities
Expansion Projects
What We Offer
Global Presence
Accolades and Awards
Regulatory Approvals
Compliance
Research and Development
05
08
08
08
09
10
13
15
16
18
20
24
31
32
33
34
36
37
Distribution and Marketing
Environment, Health and Safety
What We Do for the Society
Corporate Events
Notice of Annual General Meeting
Chairman’s Statement
Report of the Directors’ to the Shareholders
Report of the Audit Committee
Shareholders’ Meeting
Value Added Statement
Audited Financial Statements- Consolidated
Audited Financial Statements- Beximco Pharma
38
39
40
42
45
46
48
60
62
64
65
82
Audited Financial Statements- Nuvista Pharma 110
Proxy Form and Attendance Slip
Here’s to the future
Here’s to life
About the Company
Beximco Pharmaceuticals Ltd. is a leading manufacturer and exporter of medicines in Bangladesh. Incorporated in 1976,
the company started its operation by importing products from Bayer, Germany and Upjohn, USA and selling them in the
local market. In 1980 Beximco began manufacturing of these products under licensing arrangement and launched its
own formulation brands in 1983. From that humble beginning, Beximco Pharma has grown from strength to strength, and
today it has become an emerging global generic drug company from the region. Beximco’s manufacturing facilities have
been accredited by the leading global regulatory authorities, and medicines manufactured by the company are now being
exported to more than 50 countries including the highly regulated markets of USA, Europe, Canada and Australia. The
company has won the National Export (Gold) trophy a record 5 times and remains the only company in the country to win
the highly prestigious SCRIP Award as the Best Pharma Company in an Emerging Market. It also has the unique distinction
as the only Bangladeshi company to get listed on the AIM of London Stock Exchange. In Bangladesh, the company is listed
with both Dhaka and Chittagong Stock Exchanges. Beximco Pharma also has a majority stake in Nuvista Pharma (formerly
Organon Bangladesh), a leading hormone and steroid manufacturer in the country.
The company currently employs more than 4000 employees including doctors, pharmacists, engineers, chemists,
accountants, business graduates and other white collar professionals.
About the Company | Annual Report 2017-18 | 5
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.
Board and Management
Salman F Rahman
Vice Chairman
A S F Rahman
Chairman
The Board of
Directors
A S F Rahman
Chairman
Salman F Rahman
Vice Chairman
Nazmul Hassan
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
Audit Committee
Mohammad Asad Ullah, FCS
Executive Director & Company Secretary
Dr. Abdur Rahman Khan
Chairman
Shah Monjurul Hoque
Member
Osman Kaiser Chowdhury
Member
Executive Committee
Osman Kaiser Chowdhury
Member of the Board of Directors
Nazmul Hassan
Rabbur Reza
Ali Nawaz
Afsar Uddin Ahmed
Managing Director
Chief Operating Officer
Chief Financial Officer
Director, Commercial
08 | Annual Report 2017-18 | The Board of Directors
Management
Committee
Nazmul Hassan
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Rabbur Reza
Chief Operating Officer
Ali Nawaz
Chief Financial Officer
Rizvi Ul Kabir
Director, Marketing
Afsar Uddin Ahmed
Director, Commercial
Lutfur Rahman
Director, Manufacturing
Shamim Momtaz
Director, Manufacturing
Mohd. Tahir Siddique
Director, Quality
A R M Zahidur Rahman
Director, Production
Zakaria Seraj Chowdhury
Director, International Marketing
Jamal Ahmed Choudhury
Executive Director, Accounts & Finance
Ms. Roksana Hassan
Executive Director, Financial Compliance
Audit and Internal Control
Prabir Ghose
Executive Director, Quality Assurance
M A Arshad Bhuiyan
Deputy General Manager, HR
Management Committee | Annual Report 2017-18 | 09
2008
Received GMP accreditation from
Therapeutic Goods Administration
(TGA), Australia and Gulf Central
Committee for Drug Registration, for
GCC states as the first Bangladeshi
company
2009
Received GMP
approval from ANVISA,
Brazil as the first
Bangladeshi company
2011
Received GMP accreditation from
AGES, Austria (for European Union)
2012
Launched Salbutamol HFA inhaler (Azmasol®) in Singapore
2006
Launched CFC free HFA inhalers for
the first time in Bangladesh
2005
Got listed on the Alternative
Investment Market
(AIM) of
London Stock Exchange (LSE)
through issuance of GDRs
2003
Introduced anti-retroviral (ARV) drugs as
the first Bangladeshi company
1993
Russia became
destination for formulation products
the first export
1992
Started export
operations with APIs
1985
Listed on Dhaka
Stock Exchange
1983
Launched own
formulation brands
1980
Started manufacturing
products of Bayer AG,
Germany and Upjohn
Inc., USA, under license
agreements
1976
Company
incorporated
Commenced export of ophthalmic products to Europe
2013
2014
- Received GMP accreditation from Taiwan Food & Drug Administration (TFDA)
and Health Canada
- Exported medicine to Australia and Romania
2015-16
- 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
- Entered the Gulf pharma market (Kuwait)
- Won National Export Trophy (Gold) for the record 5th time
2016-17
- Commenced export of medicine to the USA.
- Company’s first overseas collaboration with BioCare Manufacturing 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.
2017-18
- Won the “Scrip Award” in the category of “Best company in an emerging market”
- Company’s oral solid dosage facility received WHO prequalification
- Acquired a majority stake in Nuvista Pharma Limited (formerly Organon Bangladesh Limited)
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10 | Annual Report 2017-18 | Key Events in History
2008
Received GMP accreditation from
Therapeutic Goods Administration
(TGA), Australia and Gulf Central
Committee for Drug Registration, for
GCC states as the first Bangladeshi
company
2009
Received GMP
approval from ANVISA,
Brazil as the first
Bangladeshi company
2011
Received GMP accreditation from
AGES, Austria (for European Union)
2012
Launched Salbutamol HFA inhaler (Azmasol®) in Singapore
2013
Commenced export of ophthalmic products to Europe
2014
- Received GMP accreditation from Taiwan Food & Drug Administration (TFDA)
and Health Canada
- Exported medicine to Australia and Romania
2015-16
- 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
- Entered the Gulf pharma market (Kuwait)
- Won National Export Trophy (Gold) for the record 5th time
2016-17
- Commenced export of medicine to the USA.
- Company’s first overseas collaboration with BioCare Manufacturing 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.
2017-18
- Won the “Scrip Award” in the category of “Best company in an emerging market”
- Company’s oral solid dosage facility received WHO prequalification
- Acquired a majority stake in Nuvista Pharma Limited (formerly Organon Bangladesh Limited)
2006
Launched CFC free HFA inhalers for
the first time in Bangladesh
2005
Got listed on the Alternative
Investment Market
(AIM) of
London Stock Exchange (LSE)
through issuance of GDRs
2003
Introduced anti-retroviral (ARV) drugs as
the first Bangladeshi company
1993
Russia became
the first export
destination for formulation products
1992
Started export
operations with APIs
1985
Listed on Dhaka
Stock Exchange
1983
Launched own
formulation brands
1980
Started manufacturing
products of Bayer AG,
Germany and Upjohn
Inc., USA, under license
agreements
1976
Company
incorporated
Nazmul Hassan
Managing Director
Managing Director’s Statement
Dear Shareholders,
Bangladesh has become one of the fastest growing economies in the world maintaining more than 6% growth over the
last decade and an impressive 7% plus growth in the last couple of years. Continued socioeconomic progress has led
Bangladesh graduating to developing nation status, and country’s remarkable achievements in healthcare have been
lauded globally.
The Bangladesh pharmaceutical market continues to register a healthy double digit growth reaching Tk 201.7 billion
during 2017-18. Local companies continue to dominate the top 10 list and they account for almost 70% of the market.
2017-18 was a good year for Beximco Pharma, on the back of a strong performance of our key brands. Company performed
very well across all therapeutic categories, especially in
chronic therapy segment. Key therapeutic areas like
cardiovascular, anti-diabetic, respiratory performed
exceptionally well, outperforming the market growth.
In the acute therapy area, analgesics, antiinfectives and
musculoskeletal also saw impressive results. During the
period under review the company expanded its portfolio
with 16 new products and 5 of them were launched for
the first time in Bangladesh.
market continues to register a healthy
201.7 billion during 2017-18. Local
double digit growth
The Bangladeshi
pharmaceutical
reaching Tk
companies continue
to dominate
the top 10 list and they account for
According to the latest global healthcare report “2018
and Beyond: Outlook and Turning Points” from IQVIA, the
share of global medicine spending from pharmerging
markets (22 developing nations including Bangladesh,
India, Pakistan, Russia, Egypt, Philippines,
China,
Thailand, Mexico, South Africa etc.) has risen sharply
from 13% in 2007 to 24% in 2017. This was largely driven by governments’ efforts to expand access to healthcare as well
as the substantial investments made by the manufacturers for expanded operations. Bangladesh with the highest CAGR
growth (nearly 20%) during 2013-17, is projected to maintain the lead with CAGR around 15% during 2018-22 period
among all the pharmerging nations.
almost 70% of the market.
IQVIA report shows global pharmaceutical market in 2017 was valued at $1.14 trillion growing by around 3.5% over
the previous year. On the other hand, global generic drugs market, valued at $350 billion, is growing at a much higher
rate. This will continue as there is increasing pressure from governments around the world to contain healthcare cost
and also because more and more blockbuster drugs are going off patent every year. This creates huge opportunity for
generic drug industry. We always believe Bangladesh can capitalize on the opportunities in generic drug space with its
skill, regulatory compliance, quality standards and above all competitiveness. Currently, Bangladesh has the facilities for
producing advanced medicines like biosimilars, vaccines, insulins and oncology products alongside active pharmaceuticals
ingredients and medical devices. The government has also taken various initiatives to promote the industry and realize its
actual export potential.
Country’s pharmaceuticals exports fetched $103.46 million in the last fiscal year, up 16.03 percent year-on-year. Our
export business posted excellent 37% growth. We have a growing and visible presence in the US market with 6 products
approved by the US FDA and 4 of them being exported. We hope US would be one of our largest export markets in terms of
value within the next 3-4 years. You would be delighted to know Beximco has won the highly prestigious Scrip Award 2017
in the category of Best Company in an Emerging Market. It’s a global recognition of the company’s considerable progress
made in recent times. We will continue to foster partnerships with global MNCs and shall reinforce our efforts to achieve
Managing Director’s Statement | Annual Report 2017-18 | 13
our aspiration to become an important and highly admired global generic company.
We have completed the first-ever acquisition in the history of Bangladesh pharma industry, taking a majority stake of
Bangladesh based hormones and steroids specialist Nuvista Pharma (formerly Organon Bangladesh Limited). Nuvista
offers a good strategic fit with Beximco Pharma; almost 70% of their product range does not compete with our portfolio.
Hormonal products were one of the growth areas for
Beximco as we are focused on strengthening our
presence in chronic segment. Nuvista acquisition will
definitely help accelerate our business in the coming
days.
We have completed the first-ever
acquisition in the history of Bangladesh
pharma industry, taking a majority
(formerly
and steroids specialist Nuvista Pharma
stake of Bangladesh based hormones
We have continued making investment in expanding
capacity, including the ‘Unit III’ oral solids, semi-solids
and liquids at Tongi site. This large scale facility is
now expected to be operational by the end of 2019.
Once operational the Unit III facility will have an annual
capacity of about 5 billion solid-dose tablets, capsules
and sachets; 70 million semi-solid units, including
creams, ointments, liquid sachets and lotions; and
130 million large- and small-volume bottles of liquid
formulations. Our state-of-the-art human insulin facility is now ready and commercial launch is expected by Q1 of 2019.
The metered dose inhaler expansion project involving single stage operation is completed while second line of single
capsule DPI is nearing completion. We are also preparing for biosimilar launch in the near future in collaboration with
global partner.
Bangladesh
Organon
Limited).
Beximco Pharma has completed its technology transfer to Malaysia based BioCare Manufacturing in establishing the first
metered dose inhaler facility in Malaysia under the government’s Economic Transformation Program. The facility, located
at Malaysia’s Seri Iskandar pharmaceuticals park, is now fully operational.
By now we have secured accreditations from almost all major global regulatory authorities and in this year our Unit II oral
solid dosage (OSD) facility got WHO prequalification status. 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. This will largely
enable us participate in international tenders by global agencies.
Going forward we will continue to invest in building our capabilities and focus our strategy in areas where we believe we
have ample opportunities to grow.
I would like to take this opportunity to thank each of our employees, shareholders and stakeholders for the continued
support and confidence on the company and its management.
Nazmul Hassan
Managing Director
14 | Annual Report 2017-18 | Managing Director’s Statement
Completed the acquisition of a majority
stake in Nuvista Pharma Limited
Won the prestigious Scrip Award 2017 in the
category of ‘Best Company in an Emerging Market’
Oral solid dosage (Unit II) received the WHO
prequalification
Became the first Bangladeshi pharmaceutical
company to commence export to Canada
Launched 16 products in the domestic market; Five
of which were launched for the first time in
Bangladesh
Completed 46 registrations of 38 products in 22
countries
Entered three (03) new countries-
Botswana, Zambia and Uzbekistan
Commenced export of Sotalol
Hydrochloride (80 mg, 120 mg and 160mg)
and Methocarbamol (500mg and 700mg)
to the US market
•
•
•
•
•
•
•
•
Completed the acquisition of a majority
stake in Nuvista Pharma Limited
Won the prestigious Scrip Award 2017 in the
category of ‘Best Company in an Emerging Market’
Oral solid dosage (Unit II) received the WHO
prequalification
Became the first Bangladeshi pharmaceutical
company to commence export to Canada
Launched 16 products in the domestic market; Five
of which were launched for the first time in
Bangladesh
Completed 46 registrations of 38 products in 22
countries
Entered three (03) new countries-
Botswana, Zambia and Uzbekistan
Botswana, Zambia and Uzbekistan
Botswana, Zambia and Uzbekistan
Botswana, Zambia and Uzbekistan
Botswana, Zambia and Uzbekistan
Botswana, Zambia and Uzbekistan
Commenced export of Sotalol
Hydrochloride (80 mg, 120 mg and 160mg)
and Methocarbamol (500mg and 700mg)
to the US market
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2017-18 Highlights | Annual Report 2017-18 | 15
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• Received US FDA approval for Nadolol tablets
and Sotalol AF tablets
• Launched fourth product, Metformin
Hydrochloride (500mg and 750mg), an
anti-diabetic, extended release drug to the US
market
• Won the SCRIP Award 2018 in the category of
"Community Partnership of the Year"
• Awarded Superbrand 2018-19, as the only
pharma company in the country
2018
Products launched
1st time in Bangladesh
16 | Annual Report 2017-18 | Post Period Highlights
Knowledge Center
Work in progress
Beximco Pharma Acquires Nuvista Pharma
Beximco Pharma completed the acquisition of a majority shareholding in Nuvista Pharma, a pharma company specializing
in hormones and steroid drugs. This is the first acquisition in the history of country’s pharma industry and to mark this
occasion a brief ceremony was held at Radisson Blu Dhaka Water Garden in presence of the Industries Minister Amir
Hossain Amu MP, high officials from different government bodies, banks, pharma industry, drug regulatory authority and
senior officials from Beximco Pharma and Nuvista. Mr. Amu praised about the pharma industry’s rapid progress and its
important contribution to country’s economic development hoping such initiatives would open up new opportunities of
growth for the pharma industry.
18 | Annual Report 2017-18 | Beximco Pharma acquires Nuvista Pharma
Beximco Pharma acquires Nuvista Pharma | Annual Report 2017-18 | 19
Our Manufacturing Capabilities
Tongi Site
Company’s main manufacturing site at Tongi, Gazipur, is spread over an area of 23 acres which houses a number of self-
contained production units including oral solids, metered dose inhalers, intravenous fluids, liquids, ointments, creams,
suppositories, ophthalmic drops, injectables, prefilled syringes, nebulizer solutions etc. The site has its own infrastructure
to ensure adequate generation and distribution of electricity with an installed capacity of 15 MW. In addition, the site
contains water purification, effluent treatment, liquid nitrogen and steam generation, and 125,000 sq ft 5-tier GMP
compliant warehouses.
The state-of-the-art oral solid dosage facility has been audited and approved by the US FDA. This facility incorporates
modern technological advancements with automated material handling systems and multilevel designs to enable gravity
feed between processing stages. It provides larger capacity and a stronger platform to manufacture value added generics
for highly regulated markets, and also offering the company as an attractive contract manufacturing partner.
The company is now implementing a massive expansion project to diversify product portfolio and expand production
capacity. A purpose built five storied building with total floor space of approx. 536500 sq ft has been constructed to
accommodate the production facilities.
Kaliakoir Site
The Kaliakoir plant contains manufacturing facilities for penicillin products, both formulation and active pharmaceutical
ingredients (APIs). In compliance with cGMP regulations, the penicillin production is carried out at this facility which is few
miles away from the Tongi site.
All the plants are highly automated with equipment sourced from reputed suppliers based in Germany, USA, UK, Switzerland,
China, India etc.
Oral Solid Dosage
20 | Annual Report 2017-18 | Our Manufacturing Capabilities
Intravenous Fluids
Ophthalmics, LYO &
Pre-filled Syringes
Our Manufacturing Capabilities | Annual Report 2017-18 | 21
Our Manufacturing Capabilities | Annual Report 2017-18 | 21
Metered Dose Inhaler &
Dry Powder Inhaler
Insulin Facilities & R&D Centre
22 | Annual Report 2017-18 | Our Manufacturing Capabilities
Warehouse
API Unit-I
Our Manufacturing Capabilities | Annual Report 2017-18 | 23
Expansion
Projects
24 | Annual Report 2017-18 | Expansion Projects
Beximco’s ongoing mega expansion projects include ‘Unit III’ oral solids,
semi-solids and liquids facilitis worth $128 million in Tongi. We continue
to make major investment in this large scale facility which is expected
to be completed by Q3 2019. Once operational the Unit III facility will
have an annual capacity of about 5 billion solid-dose tablets, capsules
and sachets; 70 million semi-solid units, including creams, ointments,
liquid sachets and lotions; and 130 million large- and small-volume
bottles of liquid formulations.
Our state-of-the-art human insulin facility, in collaboration with a
European partner, is now ready for commercial operations. The facility
will produce 3 million vials and cartridges. Single stage MDI and
multidose DPI projects are progressing well while new nasal spray unit
is completed and now undergoing qualifications.
Expansion Projects | Annual Report 2017-18 | 25
Ongoing Expansion
26 | Annual Report 2017-18 | Expansion Projects
Expansion Projects
Work in progress
Expansion Projects | Annual Report 2017-18 | 27
Unit III
• New facility for oral solid dosage, liquid and semi-solid products
• Total area 536500 sq ft
• Annual production capacities will be as follows:
- OSD- approx. 5 billion (tablets, capsules, sachets, etc.)
- Liquids- approx. 130 million bottles (large and small vol. bottles)
- Semi-solids- approx. 70 million (creams, ointments, liquid sachets, lotions, etc.)
28 | Annual Report 2017-18 | Expansion Projects
Human Insulin facility
• State-of-the-art facility in collaboration with European company
• Production capacity: 3 million vials and cartridges
Inhaler Expansion
• Metered Dose Inhaler (pMDI) – Installing single stage line (2 million
capacity)
• Single Dose Dry Powder Inhaler (sDPI) – Second line for single capsule
based inhaler
• Multi-dose Dry Powder Inhaler (mDPI) – A new multi-dose dry powder
inhaler (similar device to GSK’s Seretide® Accuhaler)
Expansion Projects | Annual Report 2017-18 | 29
Nasal Spray Unit
• Completed in 2018
• Annual Capacity: 2.5 million bottles
API Facility
• New API unit II: Project to produce high value APIs is progressing well
30 | Annual Report 2017-18 | Expansion Projects
®
Maxhaler®
Each blister dose contains
Salmeterol 50 µg (as Salmeterol Xinofolate)
and Fluticasone Propionate BP 250 µg
60 Blisters
Dry Powder Inhaler
Use only as directed by a registered physician
® Maxhaler is a registered trademark of
Beximco Pharmaceuticals Ltd.
TONGI, BANG L A D E S H
What We Offer
Beximco Pharma currently produces more than 300 generics available in well over 500 presentations and also produces
a number of active pharmaceutical ingredients (APIs). Beximco Pharma’s portfolio encompasses various therapeutic
categories namely antibiotics, analgesics, anti-diabetics, respiratory, cardiovascular, central nervous system, dermatology,
gastrointestinal etc. The company has sound expertise with specialized and advanced drug delivery systems such as
metered dose inhalers, dry powder inhalers, nasal sprays, sterile ophthalmics, lyophilized injectables, oral thin films,
suppositories etc. that have provided strong differentiation for the company. 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. Napa, Napa Extra, Neofloxin,
Neoceptin R, Atova, Azmasol, Amdocal, Tofen etc. have been household names with strong brand equity. The expanding
portfolio, including high value, differentiated, and difficult to copy products, will continue to drive strong growth in the
coming days. Company also focusses on strengthening API portfolio and its pipeline includes a number of patented, high
value products.
®
Maxhaler®
Each blister dose contains
Salmeterol 50 µg (as Salmeterol Xinofolate)
and Fluticasone Propionate BP 250 µg
60 Blisters
Dry Powder Inhaler
Use only as directed by a registered physician
® Maxhaler is a registered trademark of
Beximco Pharmaceuticals Ltd.
TONGI, BANG L A D E S H
What We Offer | Annual Report 2017-18 | 31
North AMERICA
EUROPE
CIS Central ASIA
Middle EAST
ASIA
AFRICA
ASIA
ASIA
Central AMERICA
& Caribbean ISLANDS
South AMERICA
AUSTRALIA
New ZEALAND
Global Presence
Commencing export operations with the sales of APIs to Hong Kong in 1992 and finished formulation in 1993, BPL has
emerged as a leading exporter of pharmaceuticals in the country. It remains the only company in the country to export
medicines to USA, which is the world’s largest and most stringent pharma market. Since receiving US FDA approval in
2015, the company has so far received approval for 6 products in the US market and 4 of them have been already launched.
In the year company saw registration of 46 products in 22 countries and entered three new countries- Botswana, Zambia
and Uzbekistan. Currently Beximco exports over 270 generic drugs to more than 50 countries across all the continents. The
company now has a strategic focus to build and strengthen presence in the regulated markets for value added generics
and has a rich pipeline of products for the same.
The company has a sound track record of partnerships and alliances with leading global MNCs namely GSK, Sandoz,
Novartis, Pharmacia and Upjohn, Bayer Inc. etc. Beximco Pharma, as the only Bangladeshi company, has been granted a
sub-license by Medicine Patent Pool (MPP) of the UN to produce Bristol-Myers Squibb’s new hepatitis C drug Daclatasvir.
32 | Annual Report 2017-18 | Global Presence
32 | Annual Report 2016-17 | What We Offer
Accolades and Awards
Beximco Pharma Wins Best Company in an Emerging Market at the Annual Scrip Awards 2017
North AMERICA
EUROPE
CIS Central ASIA
Middle EAST
ASIA
AFRICA
ASIA
ASIA
Central AMERICA
& Caribbean ISLANDS
South AMERICA
AUSTRALIA
New ZEALAND
Beximco Pharma has won the prestigious Scrip Award in the category of ’Best Company in an Emerging Market’ at the
13th Annual Scrip Awards ceremony held in London on 29 November 2017. Mr. Rabbur Reza, Chief Operating Officer of
Beximco Pharma, accepted the award on behalf of the company. This is the first time a Bangladeshi company has won
this global award.
Beximco Pharma
Winner of
Superbrands Award
2018-2020
Accolades and Awards | Annual Report 2017-18 | 33
Regulatory Approvals
Benchmarked to the highest global regulatory standards, Beximco Pharma’s manufacturing facilities have been audited
and approved by the following global agencies:
U.S. FDA
Therapeutic Goods Administration (TGA), Australia
AGES (European Union)
Health Canada
GCC (Gulf)
• WHO (World Health Organization)
CPhI Worldwide 2018
Beximco Pharma team led by the COO Mr. Rabbur Reza attended the world’s largest pharma expo CPhI Worldwide held
in Madrid, Spain 2018. BPL, like previous years, had a stall in this mega event to showcase its products and competitive
capabilities.
34 | Annual Report 2017-18 | Regulatory Approvals
•
•
•
•
•
First Bangladeshi
pharma company
to export medicine
to U.S.A
Certified: US FDA TGA Australia AGES Austria Health Canada WHO
Compliance
Beximco Pharma, being approved by the leading global regulatory authorities including the US FDA, TGA, AGES etc., strictly
operates in compliance with current Good Manufacturing Practices (cGMP). It maintains strict quality control procedures
at every step starting from sourcing of raw materials to dispatching of finished products. The Company is committed to
continuous improvement of its Quality Management System by measuring key performance indicators (KPI).The Company
runs its manufacturing and quality control operations following its Quality Management Systems to ensure a right first
time (RFT) approach and strive to ensure the quality, safety and availability of products by performing risk assessments
throughout the Supply Chain.
Beximco Pharma has two separate world class Quality Control laboratories managed by senior QC Professionals. The Quality
control facilities are well equipped with modern & sophisticated equipment like High Performance Liquid Chromatography
(HPLC), Ultra Performance Liquid Chromatography (UPLC), Total Organic Carbon Analyzer(TOC), Potentiometric Titrator,
Disintegration Tester, Ultraviolet (UV) Spectrophotometer, Fourier Transform Infrared Spectrophotometer (FTIR), Atomic
Absorption Spectrophotometer, Refractrometer, Dissolution Tester etc to ensure the highest quality of its products.
36 | Annual Report 2017-18 | Compliance
Research and Development
Our research and development activities are closely focused on market needs and driven by technological progress.
As an emerging global generic drug company, our key strength lies in our ability to excel in developing technologically
complex and differentiated products. Our state-of-the-art R&D lab facilitates the development of innovative and difficult
products with a focus to create unique market opportunities. We have given top priority in building and strengthening
our capabilities to excel in formulating technologically complex products such as multi-layer tablet, sustained release
formulation, dispersible tablet, metered dose inhalers, dry powder inhalers, prefilled syringes, lyophilized injectables, sterile
ophthalmics, oral thin films etc. We are also pursuing research collaboration with universities and biotech companies both
at home and abroad for strengthening our capabilities in selected areas.
Research and Development | Annual Report 2017-18 | 37
Distribution and Marketing
Beximco Pharma’s products are distributed to all the major medical institutions in Bangladesh and to approximately 55,000
retail outlets (pharmacies), via a distribution network operated exclusively for the Company on an arm’s length basis by a
related Company, I&I Services Limited. The same channels of distribution apply to all products; only the extent of distribution
varies (like super urban, extra urban and rural market distribution) depending on the products’ market characteristics. For
the export market, Beximco Pharma has several distribution agreements in place with reputed distributors. With regard
to transport, BPL’s products are generally moved by road throughout Bangladesh – predominantly between the factories
and the 33 regional distribution depots. For export, air transport is used, especially for small volume/high value products.
Alternatively, goods destined for export are transported to Bangladesh’s major port at Chittagong, which is situated some
250 kilometers from the capital.
In the domestic market the Company sells directly to retail outlets (pharmacies) and major medical institutions on demand.
The sales team is organized by geographical territories named by region and supervised by a Regional Sales Executive in
each region.
Within Bangladesh, the Company’s marketing strategy includes maintaining strong relationship with the medical
community. Beximco Pharma provides value added services to the doctors, such as the publication of a quarterly medical
newsletter, collaborative clinical research and the organization or hosting of regular seminars and symposia on various
medical topics. In addition, Beximco Pharma’s market intelligence operations track the prescription pattern of doctors in
the country, which allows the Company to conduct promotional campaigns effectively.
38 | Annual Report 2017-18 | Distribution and Marketing
Environment, Health and Safety
We are committed to providing a safe working environment for all the employees, and our EHS (Environment, Health and
Safety) program is based on a framework of consistent standards. We take great care in preserving the environment and
our initiatives are directed towards practically minimizing emissions and wastes from our manufacturing operations.
We were among the first few in the world who proactively converted all the CFC based inhalers to ozone benign HFA
formulations.
Beximco has proper control on the waste generated from the plant. We have the biggest treatment plant in Bangladesh to
treat wastewater. Solid waste is incinerated in incinerator. Dusts generated during production are collected in central dust
collector. Other wastes like glass, paper, foil, film etc. are recycled.
Beximco is committed to the protection and promotion of employee health. We identify and assess potential exposure to
chemical and physical stresses utilizing qualitative and quantitative analysis. Appropriate work uniforms, lab coats and
protective equipment are provided where required.
All employees are trained on personal hygiene and they undergo complete annual health check-up. The company conducts
EHS audit every year and runs training on general safety, fire fighting, emergency evacuation etc.
Beximco encourages the use of recycled consumables and energy efficient equipment and technology, and promotes its
green initiatives through adequate plantation around manufacturing units.
Environment, Health and Safety | Annual Report 2017-18 | 39
What We Do for the Society
Corporate social responsibility (CSR) at Beximco Pharma stems from the ideology of providing sustainable value to the
society. We strongly believe we can only be successful if we create value not just for the company but also for the society
we live in. We invest in supporting the underprivileged of the society and doing so we achieve sustainability and growth by
improving the health and wellbeing of the people. Some of our major CSR activities carried out in 2017-18 were:
Support to Rohingya Refugees
Beximco Group Vice-Chairman Mr. Salman F Rahman and
Managing Director of Beximco Pharma Mr. Nazmul Hassan
MP inaugurated free medical camp for Rohingya refugees
at Balukhali of Ukhia in Cox’s Bazar. Beximco Pharma will
continue to provide this humanitarian assistance as long as
they stay in these refugee shelters.
Flood Relief
Beximco Pharma stood beside the victims of devastating
flood that affected millions across the country.
National Youth Summit 2018
Beximco Pharma was a proud sponsor of National Youth
Summit 2018, the largest youth summit in the country,
held during 7-10 February in Cox’s Bazar. The mega event
was attended by hundreds of youth leaders and youth icons
from all parts of the country while corporate leaders, policy
makers, MPs, entrepreneurs, and renowned personalities
in the country spoke on youth leadership during the 4-day
summit.
40 | Annual Report 2017-18 | What We Do for the Society
Free Health Camp
BPL arranged 'Free Health Camp' by renowned Orthopedics
at Tongipara, Gopalgonj on the occasion of 98th birth
anniversary of Father of the Nation, Bangabandhu Sheikh
Mujibur Rahman
62nd Annual Science Festival 2018
Beximco pharma was a the key sponsor of 62nd Annual Science Festival 2018 which has been offering a big platform for
the students to come up with innovative science ideas for the last 60 years. The festival was organized by Scintilla Science
Club of St Joseph School during March 16-19, 2018.
to
initiatives
7th Kibria International Print Fair 2018
Beximco Pharma, as a responsible corporation, extends
support
that promote and celebrate
Bangladeshi arts and culture. BPL was the proud sponsor
of 7th Kibria International Print Fair 2018, held during
February 15-17, at Zainul Gallery, Faculty of Fine Art, DU.
Cultural Affairs Minister Asaduzzaman Noor inaugurated
the fair while renowned artist Rafiqun Nabi attended the
event as special guest. Eminent and young printmakers
from various institutes and organisations from Bangladesh,
India and Spain exhibited their works at the event.
5th Leadership Summit 2018
5th Leadership Summit 2018, organized by Bangladesh
Brand Forum, was held on April 07 at Le Meridien, Dhaka.
Beximco Group was the key sponsor of this event while
Beximco Pharma sponsored the Wall Street Journal
Bestseller Book "Open Source Leadership" by Rajeev
Peshawaria. This book was distributed to all the participants
of the summit.
What We Do for the Society | Annual Report 2017-18 | 41
Corporate Events
Contribution to Worker’s Welfare Foundation Fund
A part of Beximco Pharmaceuticals Ltd profit was handed
over to the Bangladesh Workers’ Welfare Foundation
Fund by Mr. Rabbur Reza to the Honorable State Minister,
Ministry of Labor and Employment.
Annual Cultural Program
Management of Beximco Pharma attended the Annual
Cultural Program – 2018 organized by Beximco Sramik-o-
Karmachari Union on March 02, 2018 at Factory Complex.
In this event, management of BPL handed over prize money,
insignia, certificates, stipend money, to the meritorious
children of factory’s permanent staffs as a part of CSR.
Inter- Department Cricket Tournament 2018
With a view to promote sports and fitness among
employees, the Inter-Department cricket Tournament of
BPL was arranged on March 23, 2018.
Inter-Department Volleyball Tournament
With the view to promote sports and fitness among
employees, the BPL Inter-Dept. Volleyball Tournament was
held on 13 October, 2017.
Annual Factory Picnic 2018
Annual Picnic of factory was held on January 26, 2018, at Shilpi Kunjo, Chandra, Gazipur.
42 | Annual Report 2017-18 | Corporate Events
Annual Sales & Marketing Conference, 2017-18
Annual Finance Conference, 2017-18
Corporate Events | Annual Report 2017-18 | 43
Strategic Briefing
Managing Director of Beximco Pharma Nazmul Hassan, Chief Operating Officer Rabbur Reza and Director of Marketing
Rizvi Ul Kabir with Marketing and Sales team took part in the companys strategic discussion held in Istanbul, Turkey.
Forecast Meeting FY 2018-19
‘Forecast Meeting’ for the financial year 2018-19 was held on April 26, 2018 in Kolkata, India. Managing Director of
Beximco Pharma Nazmul Hassan, with Marketing and Sales team took part in the day long discussion.
44 | Annual Report 2017-18 | Corporate Events
Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
NOTICE OF THE FORTY-SECOND ANNUAL GENERAL MEETING
Notice is hereby given that the Forty-second Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will
be held on Saturday, the 22nd December, 2018 at 10.30 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 on 30th June, 2018 together with
reports of the Auditors and the Directors thereon.
2. To declare 12.5% Cash Dividend.
3. To elect Directors.
4. To appoint Auditors for the year 2018-2019 and to fix their remuneration.
5. To appoint Corporate Governance Compliance Auditor for the year 2018-2019 and to fix remuneration.
By order of the Board,
Dated: November 29, 2018
(MOHAMMAD ASAD ULLAH, FCS)
Executive Director & Company Secretary
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. 26 November, 2018, 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 2017-18 | 45
Chairman’s Statement
policy offers some Incentive packages attractive to the API
industry. We have taken initiative to set up an exclusive
API manufacturing facility in the dedicated API Industrial
Park developed by the government to avail the growth
opportunities.
As I reported last year, we are making significant investments
in manufacturing facilities to build and expand capacity
to secure sustainable growth. You will find in this report,
several such projects are now in progress. We completed
manufacturing of validation batches in our human insulin
facility and have rescheduled the commercial launch of
Insulin by the first quarter of 2019 that misses the initial
target due to practical reasons. Our largest expansion
project (Unit III) to manufacture oral solid, liquid and semi-
solid products is now expected to be completed by end
of the third quarter instead of the earlier estimate of first
quarter of 2019.
We keep on driving our strategies to expand our share in
the domestic market and achieve export-led accelerated
growth in the longer term. We are mindful of the challenges
ahead to become one of the most admired and successful
companies in the region. Our success so far has given us
a solid foothold to further move forward our ambition and I
remain confident that we are taking the appropriate actions
to grow and deliver results for our shareholders.
Members of the Board of Directors have extended their
unceasing co-operation throughout the year. I convey my
heartfelt gratitude to them. Employees of the Company
deserve special recognition for their devoted services.
I acknowledge the support and co-operation we have
received from our bankers, suppliers, doctors’ community,
healthcare professionals, the regulatory bodies, government
agencies and every other person with whom we have
interacted in the conduct of our business., Finally, I am
grateful to you-our valued shareholders, for your continued
confidence in us.
Thanking you
Dear Shareholders,
I am delighted to share that for the tenth consecutive
year, the Company is reporting growth in sales and profit.
As I look back in 2007 which was a difficult year for the
Company, we noted a 3% negative growth in sales at Tk.
3,597.0 million. Our domestic sales revenue in that year
was Tk. 3,474.2 million while the export was a meager Tk.
122.8 million. But we turned around in the immediate next
year and from there on, continuing the growth momentum
doubled our sale every five years. As we report today, our
consolidated domestic and export sales revenue stands
at Tk. 16,239.7 and Tk. 1,477.0 million, respectively. This
is undeniably an achievement that deserves appreciation.
The report of the Directors and the Financial Statements
annexed thereto provides details of the operating and
financial performance of the Company and you will find that
the Company is moving towards the right direction.
This year we acquired Nuvista Pharma -our first ever
acquisition, setting a new milestone for the Pharmaceutical
Industry of the country. This strategic acquisition will
further reinforce our position in the domestic market and
accelerate growth. Although Nuvista’s financials for the
three-month post-acquisition period shows a loss of Tk.
23.3 million, I am confident that re-organized Nuvista under
its competent new management will turn to be a worthy
investment.
Government has declared Active Pharmaceutical Ingredient
(API) and Lab Regent Production and Export Policy to
promote local production of API substituting import. The
A S F Rahman
Chairman
46 | Annual Report 2017-18 | Chairman’s Statement
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Chairman’s Statement | Annual Report 2017-18 | 47
Report of the Directors to the Shareholders
I am pleased to place before you the Directors’ Report and the Audited Accounts of the company for the year ended 30
June, 2018 along with the report of the auditors thereon.
Economic Overview
Bangladesh macroeconomic report portrays a positive performance with impressive GDP growth, per capita income and
steady inflation. Exceeding the initial target, Bangladesh achieved the highest-ever 7.86% GDP growth in the last fiscal
year (2017-18). Industrial, Service and Agriculture sectors which increased by 12.06 percent, 6.39 percent and 4.19
percent respectively, contributed to the GDP growth. The per capita income has improved by 8.75 percent to $1,751 in the
FY 2017-18. Inflation rate below 6% though remained under control, the domestic currency against its principal foreign
currency US Dollar declined by 4% on point-to-point basis. There have been no disruptive political activities throughout the
period. The political stability coupled with a remarkable performance of the economy helped sustain the continued growth
of the pharmaceuticals sector.
The lending interest rates of the commercial banks have somewhat declined yielding to the appeal of the business
community and directives from the central bank but remains at double digit level. This is predicted to have positive impact
on investment.
Government has declared Pharmaceuticals including their raw materials as the “Product of the Year” 2018 recognizing the
importance of the pharmaceuticals sector in the country’s economy. Following this, a policy gazette titled “National Policy
on API (Active Pharmaceutical Ingredients) and Laboratory Reagents production and Export” was passed in May 2018 to
encourage local manufacture of APIs as a backward linkage to cater to the requirement of the domestic pharmaceutical
formulations companies and to reduce dependence on import. The policy offers several fiscal and non-fiscal incentive
measures including tax holidays, exemptions from Value Added Tax, 20% cash incentives for export, a liberal credit policy,
priority in government procurement etc. among others. Different authorities and agencies involved will now develop
operating procedures to implement the policy which is expected to take time. Additionally, the Government has declared
10% cash incentives for export of pharmaceutical along with specific other products for the fiscal year 2018-19. The
exporters of medicine subject to certain conditions will get 10% of the value of export in cash from the government. The
Pharmaceutical Industry of the country will be benefited from the supportive policies of the government.
Review of Operations
The Company for the first time is reporting consolidated financial statements due to its recent acquisition of the majority
stake of Nuvista Pharma. We completed the acquisition deal on April 2, 2018 and as such the consolidated financial
statements include Nuvista’s operating results for the post-acquisition period of three months only.
I am happy to inform that besides achieving sales and profit targets, the Company in 2017-18 has well progressed to
achieve its operational targets setting several milestones and thus strengthened its strategic positioning. I would like to
highlight the following for your consideration and informed judgments;
Acquisition of Nuvista Pharma
As you already know, Beximco Pharmaceuticals Limited has acquired 85.22% stake in Nuvista Pharma Limited, a leading
pharmaceuticals company in Bangladesh specializing in hormones and steroid drugs. This is the first ever acquisition of
the Company and the country’s pharmaceutical industry. Nuvista, formerly Organon (Bangladesh) Ltd., was a subsidiary of
Netherlands based Organon International. It was sold to the Bangladeshi management in 2006.Nuvista has been operating
in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka.
Immediately after the acquisition, the Board of Directors of Nuvista was reconstructed. The four-member Nuvista Board
now comprises three nominees from Beximco Pharma and one member from the Ministry of Industries of Government of
Bangladesh who holds 12.92 percent of the paid up capital of the company. Mr. Nazmul Hassan, Managing Director and
48 | Annual Report 2017-18 | Report of the Directors to the Shareholders
Mr. Rabbur Reza, Chief Operating Officer of Beximco Pharma have been appointed as Chairman and Managing Director
respectively, of Nuvista Pharma. In a competitive domestic market, the acquisition of Nuvista is a good strategic fit for the
Company as their strong position in hormones and steroids, with a unique portfolio of 50 generic products, complements
Beximco Pharma’s existing product range. We are now concentrating on integration and re-alignment of Nuvista’s business
and operating models for accelerated growth.
Sales Performance
During the period under discussion the Company attained consolidated net sales of Tk. 17,716.7 million as against Tk.
15,508.8 million representing significant 14.2% overall growth. The current period however, includes three month’s sales
of the subsidiary Nuvisata Pharma which was not there in the prior period.
Beximco Pharma standalone analysis reveals that the domestic market sales grew by an impressive 10.2% to reach at
Tk. 15,903.8 million as compared to Tk. 14,430.3 million of the preceding year. Our winning sales management strategies
resulted expected growth in all our key therapeutic segments. Consequent to our consistent effort to expand international
penetration, the export revenue increased to Tk. 1477.0 million registering an inspiring 37% rise over comparable previous
period. Export now makes up 8.5% of our overall sales. During the year, we completed 46 registrations of 38 products
in 22 countries; started export to Canada setting another milestone as the first Bangladeshi Company; and entered three
other overseas markets- Botswana, Zambia and Uzbekistan. Since export of our first product- Carvedilol in August 2016,
we have as of date, received approval of six products from the US Food and Drug Administration and commenced export
of four products in the US market.
Profitability
Along with sales the Company maintained its profit growth. The consolidated pre-tax profit stands at Tk. 3,361.3 million
as against Tk. 2,891.5 million earned in 2016-17 representing 16.3% YoY increase (16.4% on standalone basis). Gross
margin as a percentage of sales improved despite depreciation of Taka against dollar, due to leveraging effect of increased
sales volume. The operating expenses remained contained at 24.0% (23.8% on a standalone basis) of sales as against
24.1% of the prior period. The consolidated net profit rose by 13.7% (14.92% standalone basis) to Tk. 2,532.7 million as
against Tk. 2,226.7 million.
Credit Rating
In August 2018, Credit Rating Information and Services Limited (CRISL)- the country’s leading Credit Rating company
having Joint Venture with JCR-VIS Credit Rating Company Limited, Pakistan, has assigned AA+(Pronounced as Double A
plus) rating in the long term and ST-1 rating in the short term to Beximco Pharmaceuticals Limited.
Amendments to Memorandum and Articles of Associations
The board of Directors has decided to amend certain clauses of Memorandum and Articles of Association of the Company.
An Extra-ordinary General Meeting has been convened for this purpose. Amendments to the MoA and AoA are required to
accommodate the changing business needs and make them time befitting.
Formation of Beximco Pharma API Limited
We reported last year that Beximco Pharma has got the allotment of two plots measuring 654 decimals in the API Industrial
Park at Munshiganj, exclusively built to accommodate API manufacturing facilities. In the meantime, Government has
declared API and Lab Reagent Production and Export policy to promote API manufacturing sector aiming to reduce
dependence on import. As mentioned in the earlier section of this report, a package of incentives has been proposed in
the said policy. Subsequent to the date of Financial Position, the Company has formed an entity named Beximco Pharma
API Limited with a paid up capital of Tk. 20 million divided into 2 million shares of Tk. 10 each. The proposed Beximco
Pharma API limited is a 100% subsidiary of Beximco Pharmaceuticals Limited. Since Bangladesh Company law does not
permit formation of single ownership company, we have allotted a nominal 10 shares to an individual to comply with the
regulatory requirement.
Report of the Directors to the Shareholders | Annual Report 2017-18 | 49
Determining Nuvista’s Fair Values at Acquisition
The Company engaged PricewaterhouseCoopers Bangladesh Pvt. Ltd. to provide estimates of the Fair Value of assets as
per criteria set out in Bangladesh Financial Reporting Standard 3 (BFRS 3). Management has considered the report of
the said independent firm in allocating the total consideration paid for the acquisition among various classes of acquired
assets in compliance to the requirement of IFRS/BFRS 3. Note 3.6 of the annexed consolidated financial statements
provides further details on the valuation.
Profit and Its Appropriation
Net Profit After Tax
Adjustment for depreciation of Revalued Assets
From brought forward from previous year
Profit Available for Appropriation
Proposed Dividend:
Cash Dividend
Profit Carried Forward
Dividend
Beximco Pharmaceuticals Limited
Consolidated
2017-18
2,558,971
10,383
12,061,774
14,631,128
(506,945)
14,124,183
2016-17
2,226,695
11,757
10,330,267
12,568,719
2017-18
2,532,654
10,383
12,061,774
14,604,811
(506,945)
12,061,774
(506,945)
14,097,866
The Board of Directors recommends 12.50% Cash Dividend i.e. Tk. 1.25 per share for the year ended 30 June, 2018 for
onward approval in the Annual General Meeting.
Retirement and Re-election of Directors
Mr. Salman F Rahman and Mr. Iqbal Ahmed, Directors of the Company retire by rotation as per Articles 126 and 127 of the
Articles of Association of the Company and being eligible, offer themselves for re-election.
Salman F Rahman is co-founder of the Beximco Group. He is a renowned businessman of the country and is widely
acclaimed for his contribution to the development of private sector. He anchored the key initiatives that have helped build
Beximco’s corporate identity, and led the Group into becoming a leading industrial conglomerate in the country.
Besides being the Vice Chairman of Beximco Group of companies, he has held key positions in many business and industry
associations which include President of the Federation of Bangladesh Chambers of Commerce and Industry, President of
SAARC Chamber of Commerce & Industry, President of the Metropolitan Chamber of Commerce & Industry, President of
the Bangladesh Textile Mills Association, among others.
Currently he is the Chairman of the Board of Editors of “The Independent” an English daily newspaper in Bangladesh and
Chairman of Abahani Limited, a prominent sporting club in Bangladesh. He was the President of Bangladesh Association
of Pharmaceutical Industries and Bangladesh Association of Publicly Listed Companies. Mr. Rahman has many accolades
to his name.
Mr. Iqbal Ahmed is the member of the Board of Directors in a number of entities within the Beximco Group of companies
including Beximco Limited, Shinepukur Ceramics Limited, Beximco Synthetics Limited. He received his Bachelor’s Degree
in Science from the University of Dhaka in 1966. Mr. Ahmed was the publisher of “The Independent” an English daily
newspaper in Bangladesh.
50 | Annual Report 2017-18 | Report of the Directors to the Shareholders
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 41st Annual General Meeting of the Company has
carried out the audit for the year ended 30 June 2018.
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 2018-19. 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 2018-19.
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.
Risks and Concerns
Enterprises are not free from risks that might arise both from internal and external fronts. Like any other business or
industry, Beximco Pharmaceuticals operating in a dynamic and competitive market, is also exposed to risks that may
affect its business.
The growth of pharmaceutical Industry in Bangladesh is predominantly driven by individual private spending which depends
on the economic advancement and consequent increase in the purchasing power of the people. Any decline in economic
growth could, as for any other industry, impact the future demand for pharmaceuticals. Bangladesh however, maintained
a steady economic progress over the years with substantial uplift in all socio-economic indexes and it is anticipated that
the trend will continue in the immediate future years. Bangladesh has set its goal to turn into a middle income country by
2021. Improvement in the standard of living, education and increased health awareness reinforced by added purchasing
power is expected to trigger the demand for healthcare products in the coming years.
The Company operates in a competitive domestic market. Retention and expansion of the existing market share of
different therapeutics categories and addition of new products in line with the changing demand of the market are the key
to achieve the desired revenue and profit targets. Beximco Pharmaceuticals has talented marketing and sales team with
the proven record of success. Its strong R & D team is unrelentingly focused on development and improvement of product,
process and technology to match the evolving needs.
The Company like other pharmaceutical companies of the country is dependent on import for its APIs. Any substantial
increase in prices in the international market may affect future profitability. Beximco Pharma buys its raw materials from
Report of the Directors to the Shareholders | Annual Report 2017-18 | 51
•
•
•
•
•
•
different sources across the world at competitive prices. The Company is not reliant on any single supplier for its materials
and therefore reduces the individual supplier’s influence on procurement prices. Likewise, its customer base is also well
diversified.
Uncertainties emanating from significant changes in the pharmaceutical policy and regulations, tax regime along with
unforeseen political instability may also threaten the growth potential of the pharmaceutical sector.
Periodic appraisal of risks embedded in the operating activities of the business and deciding on the mitigating measures are
part of the routine responsibilities of the senior management of the Company. Management Committee which comprises
different functional heads of the Company meets on a monthly basis to discuss operational issues, performance and
progress. Depending on the risk, it takes strategic decisions to avoid, reduce, transfer or accommodate the risks arising
in the business management process. Additionally, Company’s investment decisions go through proper due diligence and
decisions are made after appropriate consideration of the related risks and the Company’s acceptable risk appetite. The
Company intends to earn competitive returns at acceptable risk levels.
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 39 of the financial
statements provides details of the transactions with the related party.
Certification by the Managing Director and Chief Financial Officer
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 2017 to 30 June 2018 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.
Key Operating and Financial Data
The summarized key operating and financial data for 2017-18 and immediately preceding five years is provided as
Annexure-1
Board Meetings and Attendance
Twelve Board meetings were held during the year under review. The attendance records of the Directors are as follows:
Directors
A S F Rahman
Nazmul Hassan
Iqbal Ahmed
Dr. Abdur Rahman Khan
Number of meetings
attended
Directors
Number of meetings
attended
9
12
11
10
Salman F Rahman
Osman Kaiser Chowdhury
A B Siddiqur Rahman
Shah Monjurul Hoque
12
12
12
10
52 | Annual Report 2017-18 | Report of the Directors to the Shareholders
•
•
•
The Pattern of Shareholding
Name-wise details
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.
Shares held
22,634,287
2,899,933
9,405,234
877,460
1,169,545
Directors, CEO, Company Secretary, CFO, Head of Internal Audit and their Spouses and Minor Children:
A S F Rahman, Chairman
Salman F Rahman, Vice Chairman
Nazmul Hassan, Managing Director
Company Secretary, Spouse and Minor Children
Chief Financial Officer, Spouse and Minor Children
Head of Internal Audit, Spouse and Minor Children
Executives
Shareholders holding 10% or more voting interest in the Company
8,235,353
8,254,632
13,325
-
-
-
-
-
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 provided as Annexure - 2.
On behalf of the Board
A S F Rahman
Chairman
Report of the Directors to the Shareholders | Annual Report 2017-18 | 53
Annexure-1
Key Operating and Financial Data
As on
June30, 2018
(Consolidated)
June 30,
2017
June 30,
2016
December
31, 2014
December
31, 2013
December
31, 2012
Taka in Thousand
Authorized Capital
Paid up Capital
9,100,000
9,100,000
9,100,000
9,100,000
9,100,000
9,100,000
4,055,564
4,055,564
3,862,442
3,678,516
3,503,349
3,046,390
Shareholders’ Equity
27,351,837
25,072,426
23,059,412
20,920,185
19,775,552
18,408,162
Fixed Assets (Gross)
39,081,675
31,692,789
28,756,326
25,818,728
23,051,128
20,316,639
Net Assets Value (NAV)
Per Share -Taka
Market Price Per Share
(at end of the year)
Number of
shareholders
Foreign Investors
ICB including ICB
Investors Account
Sponsors, General Public
& Other Institutions
67
93.9
62
113
60
57
56
60
83.50
58.70
47.20
55.90
57,982
62,741
67,679
89,913
92,831
86,290
90
879
92
874
83
878
68
882
68
880
66
898
57,013
61,775
66,718
88,963
91,883
85,326
Number of employees
4,256
3,833
3,515
3,063
2,897
2,748
For the Period / Year
July 2017 to
June 2018
(Consolidated)
July 2016
to June
2017
July 2015
to June
2016
Jan-Dec
2014
Jan-Dec
2013
Jan-Dec
2012
17,716,717
15,508,777
13,785,325
11,206,886
10,490,699
9,289,115
1,476,978
8,285,979
3,361,334
2,532,654
1,078,472
861,653
500,469
671,289
470,116
7,184,882
6,408,857
5,104,191
4,838,800
4,389,401
2,891,482
2,564,267
2,109,556
2,093,594
1,909,829
2,226,695
1,938,894
1,528,298
1,404,763
1,319,389
Taka in Thousand
-
12.5%
6.25
15.02
-
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
Total Sales
Export Sales
Gross Profit
Profit Before Tax
Net Profit
Dividend:
Stock
Cash
EPS/Restated EPS
Price Earning Ratio
(Time)
*Declared considering accounts for 18 months period.
54 | Annual Report 2017-18 | Report of the Directors to the Shareholders
Graphical View of Selected Growth Indicators
Taka in million
Shareholders' Equity
Total Sales
27,352
25,072
23,059
20,920
19,776
18,408
17,717
15,509
13,785
11,207
10,491
9,289
June 30
2018
(Consolidated)
June 30
2017
June 30
2016
December 31
2014
December 31
2013
December 31
2012
July 2017 to
June 2018
(Consolidated)
July 2016 to
June 2017
July 2015 to
June 2016
Jan-Dec
2014
Jan-Dec
2013
Jan-Dec
2012
Export Sales
1,477
Net Profit
1,078
862
671
500
470
2,533
2,227
1,939
1,528
1,405
1,319
July 2017 to
June 2018
(Consolidated)
July 2016 to
June 2017
July 2015 to
June 2016
Jan-Dec
2014
Jan-Dec
2013
Jan-Dec
2012
July 2017 to
June 2018
(Consolidated)
July 2016 to
June 2017
July 2015 to
June 2016
Jan-Dec
2014
Jan-Dec
2013
Jan-Dec
2012
Report of the Directors to the Shareholders | Annual Report 2017-18 | 55
Annexure-2
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.
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
-
√
√
√
√
√
-
√
-
-
56 | Annual Report 2017-18 | Report of the Directors to the Shareholders
-
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
Directors including Independent Directors for their
attendance in Meetings.
-
N/A
-
√
√
√
√
√
√
√
√
√
-
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Report of the Directors to the Shareholders | Annual Report 2017-18 | 57
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
3.3 (iii)
3.3 (iv)
3.3 (v)
3.3 (vi)
3.3 (vii)
3.3 (viii)
3.3 (ix)
3.3 (x)
3.4
3.4.1
3.4.1 (i)
3.4.1 (ii) (a)
3.4.1 (ii) (b)
3.4.1 (ii) (c)
3.4.1 (ii) (d)
3.4.2
3.5
4
4.00 (i)
4.00 (ii)
4.00 (iii)
4.00 (iv)
4.00 (v)
4.00 (vi)
4.00 (vii)
4.00 (viii)
5
5 (i)
5 (ii)
5 (iii)
5 (iv)
5 (v)
6
6 (i) (a)
6 (i) (b)
6 (ii)
7
7 (i)
7 (ii)
Monitor Internal Control Risk management process
Oversee hiring and performance of external auditors
Review the annual financial statements
Review the quarterly and half yearly financial statements
Review the adequacy of internal audit function
Review statement of significant related party transactions
Review Letters issued by statutory auditors
Review disclosures/statements/ declarations about uses of funds Raised
through IPO/RPO/Rights Issue
Reporting of the Audit Committee
Reporting to the Board of Directors
Reporting on the activities of Audit Committee
Reporting on conflicts of interests
Reporting on suspected/presumed fraud or irregularity or material defect in
the internal control system
Reporting on suspected infringement of laws
Reporting on any other matter to disclose immediately
Reporting to BSEC
Reporting to the Shareholders and General Investors
External / Statutory Auditors
Non-engagement in appraisal/valuation/fairness opinions
Non-engagement in designing & implementation of FIS
Non-engagement in Book Keeping or accounting
Non-engagement in Broker-Dealer services
Non-engagement in Actuarial services
Non-engagement in Internal Audit services
Non-engagement in services determined by Audit Committee
Possessing no share by any partner or employee of the external
audit firm during the tenure of assignment
Subsidiary Company
Composition of BOD to be similar to holding company
One ID to be in both holding and subsidiary company
Minutes of Board meetings of subsidiary company to be placed at
following Board meeting of holding company
Minutes of respective Board meeting of holding company to state that
affairs of subsidiary company be reviewed
Audit Committee of holding company to review financial statements/
investments of subsidiary company
Duties of CEO and CFO
To certify that they have reviewed Financial Statements which
contain no untrue or misleading statement or omit no material fact
To certify that the statements present a true and fair view of affairs and are
in compliance with accounting standards and applicable Laws
To certify that no transaction is fraudulent, illegal or violation of company’s
code of conduct
Reporting and Compliance of Corporate Governance
Obtaining certificate regarding compliance and sending it to
shareholders along with the Annual Report
To state, in accordance with annexure, in directors’ report whether the
conditions has been complied with
√
√
√
√
√
√
√
-
√
-
-
-
-
-
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
58 | Annual Report 2017-18 | Report of the Directors to the Shareholders
-
N/A
-
-
-
-
-
N/A
N/A
N/A
N/A
N/A
Annexure-3
Annexure-3
Certificate on Compliance of Corporate Governance Guidelines Report | Annual Report 2017-18 | 59
Report of the Audit Committee
The principal purpose of the Audit Committee is to assist the Board in effective fulfillment of its oversight responsibilities.
The Committee has distinct terms of reference (TOR) developed conforming to the Code of Corporate Governance issued
by the Bangladesh Securities and Exchange Commission which includes but not confined to overseeing the financial
reporting process, monitoring accounting policies and principles, evaluating internal control risk management practices,
reviewing the statement of significant related party transactions, assessing potential conflict of interests, etc. This report
outlines the activities conducted by the Audit Committee throughout the year.
The Committee
The Audit Committee comprises three members of the Board- two of them are Independent Directors. Dr. Abdur Rahman
Khan- an Independent Director is the present Chair while Mr. Mohammad Asad Ullah, FCS is the ex-officio secretary. The
Committee held four meetings during the review period.
The membership of the Audit Committee together with their attendance at the meeting is given below:
Membership
Designation
Position in the Committee
Attendance in Meeting
Dr. Abdur Rahman Khan
Shah Monjurul Hoque
Osman Kaiser Chowdhury
Mohammad Asad Ullah, FCS
Independent
Director
Independent
Director
Director
Executive Director &
Company Secretary
Review of Financial Statements
Chairman
Member
Member
Secretary
4/4
4/4
4/4
4/4
The Audit Committee in its meeting held on 23 October 2018 reviewed along with management, the Financial Statements
and the report of the auditor for the year ending on June 30, 2018. During the meeting the Chief Financial Officer presented
the annual accounts along with the independent auditors report to the committee. CFO briefed the Committee that the
Company for the first time is presenting consolidated financial statements due to its recent acquisition of the majority
stake of Nuvista Pharma which as per International Accounting Standard is to be dealt with as a subsidiary. The committee
in detail looked into the compliance of the disclosure provisions as per IFRS/IAS/BFRS and other regulatory authorities
including BSEC. They further discussed the financial reporting process and the adequacy of the internal control in place to
prevent errors and fraudulent activities.
The Committee carefully examined the related party transactions carried out between different associated companies
including the subsidiary. The committee was well satisfied that the related party transactions were made on an arm’s
length basis in the normal course of business and the transactions have been appropriately disclosed in the financial
statements. The independent auditors’ report also did not contain any material audit observation that called for the boards’
consideration. The committee being satisfied authorized for onward submission of the Audited Financial Statements to the
Board for approval.
Additionally, during the year the Committee met three other occasions to review among others, the Interim Un-audited
Financial Statements issued by the company at quarter ends. In each instance, the committee held detailed discussions
with senior management on different aspects of the financial statements to ensure accuracy, consistency and compliance
of the reports in all material aspects. The committee also considered the related party transactions and found that all
related party transactions were made on an arm’s length basis.
In reliance to the reviews and considerations of the Audit Committee the Board in each case approved the Financial
Statements including the Annual Audited Financial Statements for release to the shareholders.
60 | Annual Report 2017-18 | Report of the Audit Committee
External Auditor
The Committee assessed the independence, objectivity and expertise of the independent auditors engaged to carry out the
Audit for the year 2017-18. Based on the evaluation the Committee has proposed the Board to re-engage existing auditors
M/S M J Abedin & Company, Chartered Accountants, for the year 2018-19 which shall be subject to the approval of the
shareholders in the Annual General Meeting.
Discussion on Revised Code of Corporate Governance
BSEC on 3 June 2018 issued a revised Code of Corporate Governance for the listed companies which shall be effective
from 31 December 2018. The Secretary made a presentation before the Committee on the changes in the amended
code from the existing guidelines. The revised Code requires among others forming a Nomination and Remuneration
Committee with terms of reference specified therein. The Committee had a thorough discussion on the issues and provided
necessary directives to the management to take appropriate measures for their compliance. The Committee forwarded its
recommendation to the Board to set up a Nomination and Remuneration Committee in compliance to the updated codes.
Dr. Abdur Rahman Khan
Chairman
Report of the Audit Committee | Annual Report 2017-18 | 61
Shareholders’ Meeting
The 41st Annual General Meeting of the shareholders of Beximco Pharmaceuticals Limited was held on December 23, 2017 at
Beximco Industrial Park, Saravo, Kashimpur, Gazipur. Mr. Salman F Rahman, Vice Chairman of the Company presided over the
meeting. Performance of the company as well as future strategies were briefly discussed in the meeting. All resolutions put
before the shareholders were duly passed including the agenda of paying 12. 5% final cash dividend for the year ended 30
June, 2017 and considering and approving the proposed acquisition of majority Shareholdings of Nuvista Pharma Limited as
per the terms of the MoU authorized by the Board. At the end of the meeting Vice Chairman expressed his appreciation towards
shareholders for their interest in the company and their continued support.
62 | Annual Report 2017-18 | Shareholders’ Meeting
Audit Committee
Shareholders’ Meeting | Annual Report 2017-18 | 63
Value Added Statement
For the Year Ended June, 2018
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.
%
20,688,842
(9,791,900)
10,896,942
2,907,677
2,649,774
540,283
506,946
4,292,262
10,896,942
100
27
24
5
5
39
100
39%
5%
5%
24%
27%
Retained by the Company
Salaries and Benefits to Employees
Interest to Lenders
Dividend to Shareholders
Duties & Taxes to Govt. Exchequer
64 | Annual Report 2017-18 | Value Added Statement
Audited Financial Statements-Consolidated
Beximco Pharmaceuticals Ltd and its Subsidiary
Consolidated Audited Financial Statements
For the Year Ended June 30, 2018
Independent Auditors’ Report
To The Shareholders of
Beximco Pharmaceuticals Limited and its Subsidiary
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Beximco Pharmaceuticals Limited, which comprises the
Consolidated Statement of Financial Position as at 30 June 2018, the Consolidated Statement of Profit or Loss and other Comprehensive
Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows for the year from 01 July 2017 to 30
June 2018 then ended and a summary of significant accounting policies and other relevant explanatory notes.
The Financial statements of the same period of the subsidiary Nuvista Pharma Limited was audited by A. Qasem & Co. Chartered
Accountants, who through their report dated 13 October 2018 expressed an unmodified opinion on those statements.
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 consolidated financial statements give a true and fair view of the financial position of the Company as at 30 June
2018, 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;
(c) the Consolidated Statement of Financial Position ( Balance Sheet) and Consolidated Statement of Profit or Loss and other
Comprehensive Income (Profit and Loss Account) dealt with by the report are in agreement with the books of account; and
(d) the expenditure incurred was for the purposes of the company’s business.
Dhaka M. J. Abedin & Co.
October 25, 2018 Chartered Accountants
66 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
Beximco Pharmaceuticals Limited and its Subsidiary
Consolidated Statement of Financial Position
As at June 30, 2018
Notes
Amount in Taka
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Intangible Assets
Goodwill
Investment in Shares
Other Non-current Assets
Current Assets
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances and Deposits
Advance Income Tax
Short Term Investment
Cash and Cash Equivalents
TOTAL ASSETS
SHAREHOLDERS’ EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company
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
Non-Controlling Interest
TOTAL EQUITY
Non-Current Liabilities
Long Term Borrowings-Net of Current Maturity
Liability for Gratuity and WPPF & Welfare Funds
Deferred Tax Liability
Current Liabilities and Provisions
Short Term Borrowings
Long Term Borrowings-Current Maturity
Creditors and Other Payables
Accrued Expenses
Dividend Payable
Income Tax Payable
TOTAL EQUITY AND LIABILITIES
The Notes are an integral part of the Financial Statements.
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
32,394,686,712
30,524,692,707
1,280,695,416
546,691,213
36,507,658
6,099,718
11,344,199,700
5,058,847,681
663,911,096
2,761,509,393
2,094,229,902
32,568,508
339,397,174
393,735,946
43,738,886,412
27,081,962,616
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,159,277,845
4,356,762
14,608,700,961
269,874,176
27,351,836,792
7,368,863,860
4,017,425,267
1,324,166,498
2,027,272,095
9,018,185,760
5,600,826,635
1,568,989,745
991,712,907
418,476,895
4,763,126
433,416,452
43,738,886,412
Approved and authorized for issue by the Board of Directors on October 25, 2018 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Dhaka
October 25, 2018
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited and its Subsidiary
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2018
Notes
23
24
27
28
29
30
31
Net Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profit Before Tax
Income Tax Expenses
Current Tax
Deferred Tax
Profit after Tax
Profit/(Loss) Attributable to:
Owners of the Company
Non-controlling interest
Other Comprehensive Income - Unrealized Gain/(Loss)
Total Comprehensive Income for the Year
Total Comprehensive Income Attributable to:
Owners of the Company
Non-controlling interest
Earnings Per Share (EPS)
32
Amount in Taka
17,716,716,855
(9,430,737,431)
8,285,979,424
(4,259,811,440)
(618,675,127)
(3,641,136,313)
4,026,167,984
43,757,880
(540,283,443)
3,529,642,421
(168,308,290)
3,361,334,131
(828,679,830)
(792,620,241)
(36,059,589)
2,532,654,301
2,536,543,948
(3,889,647)
2,532,654,301
481,697
2,533,135,998
2,537,025,645
(3,889,647)
2,533,135,998
6.25
The Notes are an integral part of the Financial Statements.
Approved and authorized for issue by the Board of Directors on October 25, 2018 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Per our report of even date.
Dhaka
October 25, 2018
M. J. Abedin & Co.
Chartered Accountants
68 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
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Audited Financial Statements-Consolidated | Annual Report 2017-18 | 69
Beximco Pharmaceuticals Limited and its Subsidiary
Consolidated Statement of Cash Flows
For the Year ended June 30, 2018
Cash Flows from Operating Activities :
Notes
Amount in Taka
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
Acquisition of Subsidiary
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 in Long Term Borrowings
Net Increase in Short Term Borrowings
Dividend Paid
Net Cash Generated from Financing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Net Operating Cash Flow Per Share
17,195,399,333
(14,113,012,465)
3,082,386,868
(536,570,775)
54,928,425
(781,630,595)
1,819,113,923
(4,951,352,340)
(106,921,036)
(2,125,186,000)
14,114,722
1,504,092
547,179,732
(6,620,660,830)
1,859,021,877
3,546,896,539
(502,757,959)
4,903,160,457
101,613,550
292,122,396
393,735,946
4.49
35
14
34
The Notes are an integral part of the Financial Statements.
Approved and authorized for issue by the Board of Directors on October 25, 2018 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 25, 2018
70 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
Ali Nawaz
Chief Financial Officer
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Ltd. and its Subsidiary
Notes to the Financial Statements
As at and for the year ended June 30, 2018
1. The Reporting Entity
1.1. Status of 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. Acquisition of Subsidiary
On April 2, 2018 Beximco Pharmaceuticals Ltd. completed acquisition of majority shares (85.22%) of Nuvista Pharma Limited
(NPL) - a non-listed public limited company manufacturing pharmaceutical products. Through this acquisition, BPL has become the
immediate and ultimate parent company and as of date NPL remains the sole subsidiary of BPL.
1.3. Nature of Business
BPL is engaged in manufacturing and marketing of a wide range of generic pharmaceutical formulation products, life-saving
intravenous fluids, therapeutic nutrition products and Active Pharmaceutical Ingredients (APIs). Products of the company are sold in
domestic and international markets.
NPL is also engaged in producing various pharmaceutical products including oral contraceptives, hormone, steroid, anti-histamine,
anti-fibrinolytic, anti-infective, cardiac, gastrointestinal, musculoskeletal, respiratory, vitamin & mineral supplement and women’s
health products.
Both BPL and NPL provides contract manufacturing services.
2. Basis of Preparation of Financial Statements
2.1. 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).
2.2. Basis of Measurement
The financial statements have been prepared on Historical Cost basis except for certain Property, Plant and Equipment measured
at revalued amount (revaluation carried out in 2008). The Tangible and Intangible Assets and Liabilities of the acquired subsidiary
has been reported at their fair values at the date of acquisition. Basis of determination of the fair values has been explained in the
notes on accounting policies. Investment in Shares of listed companies have been valued at the year- end quoted prices. Cash flow
statement has been prepared on cash basis.
2.3. Reporting Period
Financial year of both Beximco Pharmaceuticals Limited (BPL) and its subsidiary Nuvista Pharma Limited (NPL) begins on July 1 and
ends on June 30. However, BPL acquired NPL on April 2, 2018 and as such consolidated financial statements covers full year (July
1, 2017 to June 30, 2018) for BPL and three months (April 2, 2018 to June 30, 2018) period for NPL.
2.4. Comparative Information
The current reporting being the first year of acquisition of the subsidiary, no comparable prior period information is relevant for
reporting in the consolidated financial statements.
Audited Financial Statements-Consolidated | Annual Report 2017-18 | 71
3. Significant Accounting Policies
3.1. Basis of Consolidation
The financial statements of the subsidiary Nuvista Pharma Limited has been consolidated with those of Beximco Pharmaceuticals
Limited in accordance with IFRS/BFRS 10: Consolidated Financial Statements.
The Company acquired 85.22% shares of the issued paid up capital of Nuvista Pharma Limited. This ownership interest is adequate
enough to establish control over NPL and thus BPL meets the conditions as stated in IFRS/BFRS 10: Consolidated Financial
Statements to consider NPL as a subsidiary. Consolidation has been done for the period since the date at which the Company
obtained control over the subsidiary through completion of the acquisition deal.
3.2. Inter-Company Transactions
Assets, Liabilities, Equity, Income, Expenses and Cash Flows arising out of transactions between the Company and the subsidiary
have been eliminated in full in the Consolidated Financial Statements.
3.3. Non-Controlling Interests (NCIs)
Non-Controlling Interests (NCIs) at the date of acquisition has been measured at fair value of the net assets of the acquired company
in proportion to the shares of the entitled holders. Profit or Loss and Other Comprehensive Income subsequent to the acquisition, has
been allocated to the Owners of the Company and to the NCIs and also disclosed in the financial statements.
3.4. Purchase Consideration
The Company acquired the shares of Nuvista Pharma Limited for cash which consisted of the total negotiated price for the acquisition
less any adjustments made as per condition precedence set out in the terms of agreement. The net amount paid or payable, has
been accounted for as the Purchase Consideration for the acquisition. This also includes the shares transfer fee paid to the Registrar
of Joint Stock Companies and Firms.
3.5. Valuation of Goodwill
Goodwill has been determined in accordance with IFRS/BFRS 3: Business Combination. This represents the excess of the
aggregate of Purchase Consideration and the acquisition-date fair value of NCI’s share in the net assets over the acquisition-date fair
value of the net assets of the subsidiary.
3.6. Basis of Estimation of Fair Values at Acquisition
The Company engaged PricewaterhouseCoopers Bangladesh Pvt. Ltd. to provide estimates of the Fair Value for the tangible assets
and identified intangible assets as per criteria set out in International Financial Reporting Standards and Bangladesh Financial
Reporting Standards 3 (IFRS/BFRS 3: Business Combination). Management has considered the report of the said independent
firm in allocating the total consideration paid for the acquisition among various classes of acquired assets in compliance of the
requirement of IFRS/BFRS 3.
Tangible fixed assets other than land were valued using the depreciated replacement cost method. Depreciated replacement costs
reflect adjustments for physical deterioration as well as functional and economic obsolescence.
Land was valued at prevailing market price taking into consideration factors like location, size and industrial or other use, availability
of infrastructure etc., among others.
The intangible assets relating to Developed Products has been valued using the Multi-period Excess Earning Method while the Trade
Name/Trademark has been valued following Relief-from Royalty approach.
The fair value of inventories are determined based on the estimated selling price in the ordinary course of business less the
estimated costs of completion and sale.
3.7. Acquisition related Costs
All advisory, accounting, valuation, legal or other professional/consulting fees and general administrative costs related to the
acquisition of business has been accounted for as expense.
72 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
4. Property Plant and Equipment
Particulars
Land
Building and
Plant,
Other Machinery and
Equipment
Constructions
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Amount in Taka
Total
Cost
Opening/Acquisition Date Balance
Additions
Acquisition Date Fair Value Adjustment
of Subsidiary’s Assets
Disposal during the Year
3,619,350,155
-
7,037,804,285 13,133,864,081 269,672,548
22,239,265
155,457,707
3,463,060
960,330,806
155,989,774
537,364,295 25,558,386,170
367,369,650
30,219,844
448,479,441
-
67,524,731
-
105,565,171
(32,991,791)
-
-
-
-
(45,718,653)
(490,560)
621,569,343
(79,201,004)
Cost at June 30, 2018
4,067,829,596
7,108,792,076
13,361,895,168
291,911,813 1,070,601,927
567,093,579
26,468,124,159
Accumulated Depreciation
Opening/Acquisition Date Balance
Depreciation Charged
Adjustment for Assets disposed off
Accumulated Depreciation at
June 30, 2018
- 1,664,333,450
162,282,667
-
-
-
5,178,994,005
519,464,247
(31,078,661)
112,592,339
13,935,986
-
542,833,310
73,085,485
(30,236,317)
318,073,803
32,946,807
(244,365)
7,816,826,907
801,715,192
(61,559,343)
- 1,826,616,117
5,667,379,591
126,528,325
585,682,478
350,776,245
8,556,982,756
Net Book Value June 30, 2018
4,067,829,596
5,282,175,959
7,694,515,577
165,383,488
484,919,449
216,317,334
17,911,141,403
Capital Work in Progress
Carrying Value as on June 30, 2018
5. Intangible Assets
(a)This is arrived at as follows:
Balance as at July 1, 2017
Addition during the Year
Acquisition date fair value of Intangibles
Less amortized during the year
Balance as at June 30, 2018
(b)This consists of as follows:
Product Development, Developed Products, Licensing and Marketing Rights
Trade names and Trademarks
ERP Project
6. Goodwill
(a) Value of Goodwill is arrived at as follows:
Purchase Consideration*
Share of Non-controlling Interest at the date of acquisition - Note 16 (b)
Less: Acquisition date Fair Value of Identifiable Net Assets
12,613,551,304
30,524,692,707
Amount in Taka
462,968,347
106,921,036
755,000,000
1,324,889,383
(44,193,967)
1,280,695,416
1,079,247,566
54,000,000
147,447,850
1,280,695,416
2,125,186,000
273,763,823
2,398,949,823
(1,852,258,610)
546,691,213
*Purchase Consideration includes share transfer fee of Taka 31,136,000 paid to the Registrar of Joint Stock Companies and Firms.
Audited Financial Statements-Consolidated | Annual Report 2017-18 | 73
(b) Further to Notes 3.6 - Acquisition date Fair Value of Identifiable Net Assets is arrived at as follows:
Assets:
Land
Building & Other Construction
Plant, Machinery and Equipments
Furniture & Fixture
Office Equipment
Transport & Vehicle
Capital Work in Progress
Developed Products
Trade Names and Trademarks
Other Assets
Total Assets (A)
Less Liabilities:
Long Term Loan
Deferred liability - Gratuity Payable
Deferred tax liabilities
Current liabilities
Total Liabilities (B)
Fair Value of Identifiable Net Assets (A-B)
7. Investment in Shares
(a)Investment Details (Taka)
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
(iii) Biocare Manufacturing SDN.BHD. , Malaysia- note (e)
(b) Number of Shares:
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
(iii) Biocare Manufacturing SDN.BHD., Malaysia- note (e)
Amount in Taka
724,088,154
270,298,219
795,191,413
22,769,014
7,034,990
83,342,293
17,505,125
701,000,000
54,000,000
541,854,735
3,217,083,943
195,457,741
149,421,538
118,003,165
901,942,889
1,364,825,333
1,852,258,610
4,188,358
1,569,450
30,749,850
36,507,658
159,861
571,182
1,500,000
(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 2017-18 was Tk. 26.20 in both Dhaka and Chittagong Stock
Exchanges.
(d) Shares of Central Depository Bangladesh Ltd. (CDBL) are not traded.
(e) Biocare Manufacturing SDN.BHD., Malaysia:
This represents 1,500,000 Ordinary Shares of Malaysian Ringgit (RM) 1 each issued to Beximco Pharmaceuticals Ltd. by BioCare
Manufacturing SDN.BHD. (“BioCare”), Malaysia. Beximco Pharmaceuticals Ltd. has been issued 30% of the equity share of the
Malaysian based company for providing full technical support to set up a manufacturing facility in Seri Iskandar Pharmaceutical
Park, Perak, Malaysia and to produce specialized pharmaceutical products.
8. Other Non-current Assets
This represents car loan and other long-term loan given to the employees of the Nuvista Pharma Ltd.
74 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
9. Inventories
This consists of as follows :
Finished Goods
Work in Process
Raw Materials
Packing Materials
Laboratory Chemicals
Physician Samples
R&D Materials
Materials in Transit
10. Spares & Supplies
This consists of as follows :
Spares & Accessories
Stock of Stationery
Laboratory Consumables
Spares in Transit
Literature & Promotional Materials
Miscellaneous Item
11. Accounts Receivable
Amount in Taka
864,137,218
262,723,223
2,183,474,721
971,119,763
27,979,741
82,714,044
324,655
666,374,316
5,058,847,681
545,032,936
10,936,969
330,437
614,603
106,477,464
518,687
663,911,096
This includes receivable of Tk. 596,463,606 equivalent to US$ 7,190,640 against export sales. Part of the export sales receivables
are against Letter of Credit while the rest are unsecured but considered good.
Accounts Receivable also includes Tk. 2,011,958,959 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. 2,071,859,759 on 31 May, 2018.
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.
12. Loans, Advances and Deposits
This is unsecured, considered good and consists of as follows :
Clearing & Forwarding
VAT
Claims Receivable
Security Deposit & Earnest Money
Lease Deposit
Capital Expenditure/ Project
Expenses
Bank Guarantee Margin
Loan to Employees
Rent Advance
Motor Cycle
Raw & Packing Material
Prepaid Insurance
Overseas Liaison Office
Others
162,932,842
219,639,030
19,642,831
50,467,768
17,600,613
108,792,585
133,241,320
27,004,835
120,493,363
13,309,579
180,739,474
735,793,984
202,499,308
32,698,675
69,373,695
2,094,229,902
Audited Financial Statements-Consolidated | Annual Report 2017-18 | 75
(a) 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.
(b) Prepaid insurance 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 portion of the prepaid insurance has been capitalized.
13. 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.
14. Cash and Cash Equivalents
This consists of as follows:
(a) Cash in Hand (including Imprest Cash)
(b) Cash at Bank :
(i) Current & FC Account
(ii) FDR Account
15. Issued Share Capital
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 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
192,159,614
167,102,855
34,473,477
393,735,946
5,000,000,000
4,100,000,000
9,100,000,000
517,757,500
3,165,382,980
59,512,500
312,911,470
4,055,564,450
5,951,250 ordinary shares of Tk. 10 each were issued to the shareholders of Beximco Infusions Ltd. on it’s merger with Beximco
Pharmaceuticals Ltd. in 2005.
41,000,000 fully convertible 5% preference shares of Tk. 100 each were issued in 2009. 50% of the preference shares were
converted into 16,169,191 ordinary shares of Tk. 10 each on February 1, 2010. The rest 50% were converted into 15,121,956
ordinary shares of Tk. 10 each on May 2, 2010.
C. Composition of Shareholding of Ordinary Shares:
Sponsors:
A S F Rahman
Salman F Rahman
Other Directors and Associates
Public Issue:
GDRs- London Stock Exchange (AIM)
Foreign Investors’ Shareholdings (DSE/CSE)
Institutions (ICB, ICB Investors’ Accounts & Others)
Individual Shareholders
No. of shares
% of Share Capital
8,235,353
8,254,632
36,999,784
53,489,769
90,943,627
74,469,959
119,603,843
67,049,247
352,066,676
405,556,445
2.03
2.04
9.12
13.19
22.42
18.36
29.49
16.54
86.81
100.00
76 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
16. Non-controlling Interest
(a) Non-controlling Interest as on June 30, 2018:
Non-controlling Interest at the date of acquisition
Proportionate profit/(loss) subsequent to acquisition
(b) Non-controlling Interest at the date of acquisition is arrived at as follows:
Fair value of Identifiable net assets
Proportionate holdings of NCIs at acquisition date
17. Long Term Borrowings - Net of Current Maturity
(a) This is arrived at as follows :
Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
Obligation Under Finance Leases
AB Bank
Dhaka Bank Ltd.
(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
Present Value of Finance Lease liability
Amount in Taka
273,763,823
(3,889,647)
269,874,176
1,852,258,610
14.78%
273,763,823
2,809,556,317
280,596,178
759,326,232
167,946,540
4,017,425,267
260,426,903
336,141,714
596,568,617
(114,965,180)
481,603,437
201,007,259
280,596,178
481,603,437
(c) AB Bank
This loan is payable in quarterly installments and is secured by paripassu hypothecation along with Janata Bank on all fixed and
floating assets of the Company excepting the machineries and equipments financed by ODDO BHF Aktiengesellshaft, Frankfurt,
Germany.
18. Liability for Gratuity and WPPF & Welfare Funds
Gratuity Payable
Workers Profit Participation and Welfare Fund
19. Short Term Borrowings
Janata Bank Ltd. - Cash Credit-Hypothecation Loan
Liability for UPAS Letter of Credit
Dhaka Bank Ltd
The City Bank Ltd.
Mutual Trust Bank Ltd.
759,708,531
564,457,967
1,324,166,498
3,897,681,180
1,064,417,066
617,381,902
2,507,475
18,839,012
5,600,826,635
Audited Financial Statements-Consolidated | Annual Report 2017-18 | 77
20. Long Term Borrowings - Current Maturity
This consists of as follows :
Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
Obligation Under Finance Leases
AB Bank
Dhaka Bank Ltd.
21. Creditors and Other Payables
Goods & Services
Provident Fund
Advance Against Sales
Others
22. 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)
23. Net Revenue
Domestic Sales
Export
Toll Income
24. Cost of Goods Sold
This is made-up as follows :
Work-in-Process - Opening /at the date of acquisition
Materials Consumed (Note: 25)
Factory Overhead (Note: 26)
Total Manufacturing Cost
Work-in-Process (Closing)
Cost of Goods Manufactured
Finished Goods - Opening /at the date of acquisition
Finished Goods available
Cost of Physician Sample transferred to Sample Stock
Finished Goods (Closing)
25. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
78 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
Amount in Taka
852,470,599
201,007,259
400,341,697
115,170,190
1,568,989,745
621,334,927
188,151,262
43,576,730
138,649,988
991,712,907
251,493,606
166,983,289
418,476,895
16,237,454,376
1,476,977,889
2,284,590
17,716,716,855
155,553,707
7,236,638,335
2,554,986,926
9,947,178,968
(262,723,223)
9,684,455,745
803,975,989
10,488,431,734
(193,557,085)
(864,137,218)
9,430,737,431
1,920,966,484
8,498,246,076
(3,182,574,225)
7,236,638,335
26. Factory Overhead
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
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Other Expenses
27. Administrative Expenses
Salary & Allowances
Rent
Repairs and Maintenance
Registration & Renewals
Travelling & Conveyance
Entertainment
Printing & Stationery
Audit Fee
Local Authority Taxes
Insurance Premium
Bank Charges
Telephone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
Business Acquisition Cost
Company Secretarial, Regulatory Fee and AGM Expense
Advertisement
Training & Conference
Depreciation
Board Meeting Attendance Fee
Other Expenses
Amount in Taka
904,509,549
216,587,905
22,801,790
4,508,685
196,960
13,724,885
9,764,755
1,821,636
222,652,875
22,091,508
9,211,158
207,961,293
144,124,432
4,961,417
26,780,147
720,995,025
22,292,906
2,554,986,926
314,685,553
13,754,553
49,638,421
8,507,108
26,470,642
6,829,212
6,021,432
1,628,750
913,142
153,958
33,534
6,245,040
13,246,325
8,659,820
12,619,081
32,250,219
413,705
10,279,328
28,060,048
603,564
77,661,692
618,675,127
Audited Financial Statements-Consolidated | Annual Report 2017-18 | 79
28. Selling, Marketing and Distribution Expenses
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
Distribution Commission
Delivery Expense
Depreciation & Amortization
Other Expenses
29. Other Income
Interest Income
Dividend Income
Royalty Income
Technology Transfer Income - Biocare Manufacturing SDN. BHD., Malaysia
Income From sale of Product Dossier
Distribution Commission
Exchange Rate Fluctuation Gain / (Loss)
Sale of Miscellaneous Item
Profit/(Loss) on Sale of Fixed Assets
30. Finance Cost
Interest on Working Capital Loan
Interest on Long Term Loan*
Interest on Lease Finance
Interest on Loan from PF, WPPF & Welfare Fund
Other Bank Charges
Amount in Taka
1,262,270,771
78,267,019
8,958,993
440,145,550
53,419,672
40,877,932
20,542,289
9,364,325
49,081,984
100,398,454
32,264,432
263,875,222
428,361,958
10,893,311
128,243,083
55,008,186
120,383,504
234,392,430
179,142,387
96,854,086
28,390,725
3,641,136,313
54,928,425
1,504,092
6,093,728
18,145,620
4,959,000
4,266,424
(42,662,242)
49,772
(3,526,939)
43,757,880
378,949,336
(10,909,700)
73,787,122
85,080,425
13,376,260
540,283,443
*Net of interest rebate received as per the terms of the sanction letter of the loan for the timely repayment of all the
installments.
31. Income Tax Expenses
This consists of as follows :
(a) Current Tax
(b) Deferred Tax Expense
80 | Annual Report 2017-18 | Audited Financial Statements-Consolidated
792,620,241
36,059,589
828,679,830
32. Earnings Per Share (EPS)
(a) Earnings attributable to the Owners of the Company
(b) Weighted average number of Shares outstanding during the year
Earnings Per Share (EPS)
33. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Less Non-controlling Interest
Equity Attributable to the Owners of the Company
Number of Shares at Financial Position date
Net Asset Value (NAV) Per Share
34. Net Operating Cash Flow Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Shares at Financial Position date
Net Operating Cash Flow Per Share (NOCFPS)
35. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
Adjustment to reconcile net profit to net cash provided by operating activities :
(a) Non-cash Expenses :
Depreciation
Amortization
Gratuity & WPPF
Technology Transfer Income - Biocare Manufacturing SDN. BHD., Malaysia
Exchange rate fluctuation loss on Bank Loan in Foreign Currency
Deferred Tax
(b) Non-operating Items
Dividend Income
Loss on sale of Fixed Assets
(c) Changes in working Capital
(Increase)/Decrease in Inventories
(Increase)/Decrease in Spares and Supplies
(Increase)/Decrease in Accounts Receivable
(Increase) in Loans, Advances & Deposits
Increase/(Decrease) in Creditors and Other Payables
Increase/(Decrease) in Accrued Expenses
Increase/(Decrease) in Income Tax Payable
Net cash Generated from Operating Activities
Salman F Rahman
Vice Chairman
Dhaka
October 25, 2018
Amount in Taka
2,536,543,948
405,556,445
6.25
43,738,886,412
(16,387,049,620)
(269,874,176)
27,081,962,616
405,556,445
66.78
1,819,113,923
405,556,445
4.49
2,532,654,301
970,984,130
801,715,192
44,193,967
57,650,531
(18,145,620)
49,510,471
36,059,589
2,022,847
(1,504,092)
3,526,939
(1,686,547,355)
(1,192,022,631)
(18,678,378)
(566,040,570)
(365,849,712)
403,748,186
41,306,104
10,989,646
1,819,113,923
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Audited Financial Statements-Consolidated | Annual Report 2017-18 | 81
Audited Financial Statements-Beximco Pharma
Beximco Pharmaceuticals Limited
Audited Financial Statements
For the Year Ended June 30, 2018
Independent Auditors’ Report
To The Shareholders of
Beximco Pharmaceuticals Limited
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 2018, the Statement of Profit or Loss and other Comprehensive Income, Statement of Changes in Equity
and Statement of Cash Flows for the year from 01 July 2017 to June 30 2018 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 June 30 2018, 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)
(b)
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;
in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our
examination of these books;
(c) the Statement of Financial Position ( Balance Sheet) and Statement of Profit or Loss and other Comprehensive Income (Profit and
Loss Account) dealt with by the report are in agreement with the books of account; and
the expenditure incurred was for the purposes of the company’s business.
(d)
Dhaka M. J. Abedin & Co.
October 25, 2018 Chartered Accountants
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 83
Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2018
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Intangible Assets
Investment in Subsidiary
Investment in Shares
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
Non-Current Liabilities
Long Term Borrowings-Net of Current Maturity
Liability for Gratuity and WPPF & Welfare Funds
Deferred Tax Liability
Current Liabilities and Provisions
Short Term Borrowings
Long Term Borrowings-Current Maturity
Creditors and Other Payables
Accrued Expenses
Dividend Payable
Income Tax Payable
TOTAL EQUITY AND LIABILITIES
Notes
June 30, 2018
4 (a)
5
6
7
8
9
10
11
12
13
14
15
4(b)
16
17
18
19
20
21
22
23
31,332,493,872
28,645,104,798
525,695,416
2,125,186,000
36,507,658
10,832,521,567
4,665,449,461
654,781,270
2,736,944,147
2,066,840,961
339,397,174
369,108,554
42,165,015,439
27,104,389,931
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,159,277,845
4,356,762
14,631,128,276
6,963,764,382
3,849,478,727
1,224,462,270
1,889,823,385
8,096,861,126
4,962,098,246
1,453,819,555
939,538,235
303,447,824
4,540,814
433,416,452
42,165,015,439
Amount in Taka
June 30, 2017
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
34,084,132,870
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
1,485,432,660
715,790,200
538,163,779
245,375,014
353,217
420,924,678
34,084,132,870
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2018 and signed for and on behalf of the Board:
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Per our report of even date.
Dhaka
October 25, 2018
84 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
M. J. Abedin & Co.
Chartered Accountant
Beximco Pharmaceuticals Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2018
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profit Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profit after Tax for the Year
Other Comprehensive Income - Unrealized Gain/(Loss)
Total Comprehensive Income for the Year
Earnings Per Share (EPS)
Notes
24
25
28
29
30
31
32
33
34
35
July 2017 -
June 2018
Amount in Taka
July 2016 -
June 2017
17,380,728,001
15,508,776,972
(9,255,504,681)
8,125,223,320
(4,143,623,455)
(595,185,629)
(3,548,437,826)
3,981,599,865
64,973,584
(512,099,369)
3,534,474,080
(8,323,895,349)
7,184,881,623
(3,736,675,551)
(522,396,449)
(3,214,279,102)
3,448,206,072
144,852,831
(557,003,162)
3,036,055,741
(168,308,290)
(144,574,083)
3,366,165,790
2,891,481,658
(807,194,527)
(790,580,483)
(16,614,044)
2,558,971,263
481,697
2,559,452,960
(664,786,534)
(591,982,589)
(72,803,945)
2,226,695,124
2,579,507
2,229,274,631
6.31
5.49
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2018 and signed for and on behalf of the Board:
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 25, 2018
Ali Nawaz
Chief Financial Officer
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountant
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 85
Beximco Pharmaceuticals Limited
Statement of Changes in Equity
For the Year ended June 30, 2018
Share
Capital
Share
Premium
Excess of
Issue Price
over Face
Value of GDRs
Capital
Reserve on
Merger
Revaluation
Surplus
Unrealized
Gain/
(Loss)
Amount in Taka
Retained
Earnings
Total
Balance as on July 01, 2017
Total Comprehensive
Income for the Year:
Profit for the Year
Other Comprehensive Income
Transactions with
Shareholders:
Cash Dividend
Adjustment for Depreciation
on Revalued Assets
Adjustment for Deferred Tax
on Revalued Assets
Balance as on June 30, 2018
the
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 25,072,425,900
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
481,697
2,558,971,263
-
2,558,971,263
481,697
-
(506,945,556)
(506,945,556)
-
(10,382,600)
-
10,382,600
-
(20,543,373)
4,055,564,450 5,269,474,690 1,689,636,958 294,950,950 1,159,277,845 4,356,762 14,631,128,276 27,104,389,931
(20,543,373)
-
-
-
-
-
-
Net Asset Value (NAV) Per Share (Note- 36) 66.83
For the Year ended June 30, 2017
3,862,442,340 5,269,474,690 1,689,636,958 294,950,950 1,225,100,042 1,295,558 10,716,511,871 23,059,412,409
Balance as on July 01, 2016
Total Comprehensive Income
for the Year:
Profit for the Year
Other Comprehensive Income
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
-
-
-
193,122,110
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
(23,139,023)
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 25,072,425,900
(23,139,023)
-
-
-
-
-
-
Net Asset Value (NAV) Per Share (Note- 36) 61.82
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2018 and signed for and on behalf of the Board:
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Per our report of even date.
Dhaka
October 25, 2018
M. J. Abedin & Co.
Chartered Accountant
86 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
Beximco Pharmaceuticals Limited
Statement of Cash Flows
For the Year ended June 30, 2018
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
Investment in Subsidiary
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 Year
Cash and Cash Equivalents at End of Year
Net Operating Cash Flow Per Share
* Restated
Amount in Taka
July 2016 -
June 2017
15,028,477,642
(11,726,003,260)
3,302,474,382
(557,003,162)
161,110,825
(518,291,724)
2,388,290,321
(3,016,391,390)
(108,998,404)
-
22,059,127
1,427,955
552,460,907
(2,549,441,805)
32,424,297
375,788,390
(193,154,407)
215,058,280
53,906,796
221,121,229
275,028,025
Notes
July 2017 -
June 2018
16,851,875,991
(13,768,549,304)
3,083,326,687
(512,099,369)
54,928,425
(778,088,709)
1,848,067,034
(4,947,915,606)
(106,921,036)
(2,125,186,000)
1,354,100
1,504,092
547,179,732
(6,629,984,718)
1,902,090,586
3,476,665,586
(502,757,959)
4,875,998,213
94,080,529
275,028,025
369,108,554
38
13
37
4.56
5.89*
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 25, 2018 and signed for and on behalf of the Board:
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 25, 2018
Ali Nawaz
Chief Financial Officer
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountant
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 87
Beximco Pharmaceuticals Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2018
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, 2018;
(b) a Statement of Profit or Loss and Other Comprehensive Income for the year ended June 30, 2018;
(c) a Statement of Changes in Equity for the year ended June 30, 2018;
(d) a Statement of Cash Flows for the year ended June 30, 2018; 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, 2017 to June 30, 2018. The last audited financial statements
were prepared for year ending June 30, 2017. Figures for earlier year have been re-arranged wherever considered necessary to
ensure better comparability with the current year.
2.5 Authorisation for issue
The financial statements have been authorised for issue by the Board of Directors October 25, 2018.
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.
88 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
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.
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 89
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.
(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 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.
90 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
3.8 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 Taxes.
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 Interest Income
Interest income is recognized on accrual basis.
3.11 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.
3.12 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 is 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.
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 91
(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 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.
3.14 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.
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 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.
3.18 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.
92 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
4 (a). Property, Plant and Equipment
As on June 30, 2018 Amount in Taka
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Cost
At July 01, 2017
Additions
Disposal during the Year
3,343,741,442
-
-
6,791,103,860
3,463,060
-
12,032,024,319
153,477,707
(30,979,553)
225,416,905
22,149,265
-
773,503,897
155,989,774
(3,345,000)
514,935,182
27,304,510
-
23,680,725,605
362,384,316
(34,324,553)
Cost at June 30, 2018
3,343,741,442 6,794,566,920 12,154,522,473 247,566,170 926,148,671 542,239,692 24,008,785,368
Accumulated Depreciation
At July 01, 2017
Depreciation Charged
Adjustment for Assets disposed off
Accumulated Depreciation at
June 30, 2018
-
-
-
1,620,406,516
160,153,048
-
4,766,780,484
501,033,877
(29,066,434)
91,105,709
13,431,120
-
439,348,695
66,773,574
(3,057,667)
302,679,677
31,686,750
-
7,220,321,081
773,078,369
(32,124,101)
- 1,780,559,564
5,238,747,927 104,536,829 503,064,602 334,366,427
7,961,275,349
Net Book Value June 30, 2018
3,343,741,442 5,014,007,356
6,915,774,546 143,029,341 423,084,069 207,873,265 16,047,510,019
Capital Work in Progress 12,597,594,779
Carrying Value as on June 30, 2018 28,645,104,798
Assets include leasehold assets of Tk. 1,259,514,081 at cost and Tk. 933,624,639 at carrying value.
As on June 30, 2017
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Cost
At July 01, 2016
Additions
Transferred in & Capitalized
Disposal during the Year
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 8,012,063,489
Carrying Value as on June 30, 2017 24,472,468,013
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 93
Capital Work in Progress is arrived at as follows: Amount in Taka
June 30, 2017
June 30, 2018
Opening Balance
Addition during the year
Transferred & Capitalized
Building and Other Constructions
Plant & Machinery
Closing balance at end of year
4 (b). Revaluation Surplus
8,012,063,489
4,585,531,290
12,597,594,779
-
-
-
5,956,586,824
2,598,531,112
8,555,117,936
(543,054,447)
(61,530,227)
(481,524,220)
12,597,594,779
8,012,063,489
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
Adjustment for depreciation on revalued assets
Adjustment for Deferred Tax on revalued assets
5. Intangible Assets
1,190,203,818
(10,382,600)
(20,543,373)
1,159,277,845
1,225,100,042
(11,757,201)
(23,139,023)
1,190,203,818
Particulars
Product development, Licensing and
Marketing Rights
ERP Project
Total
Cost
As on July 01, 2017
Addition During the year
As on June 30, 2018
Amortization
As on July 01, 2017
Amortized During the year
As on June 30, 2018
Balance as on June 30, 2018
6. Investment in Subsidiary
432,821,781
77,166,836
509,988,617
87,547,084
44,193,967
131,741,051
378,247,566
117,693,650
29,754,200
147,447,850
-
-
-
147,447,850
550,515,431
106,921,036
657,436,467
87,547,084
44,193,967
131,741,051
525,695,416
(a) The Company acquired 10,013,474 shares of Nuvista Pharma Ltd (NPL) representing 85.22% of the Paid Up Capital of NPL.
The acquisition was completed on April 2, 2018. The investment in subsidiary represents the Purchase Consideration paid for the
aforesaid acquisition and includes an amount of Tk. 31,136,000 paid as share transfer fee to the Registrar of Joint Stock Companies
and Firms.
(b) As per the audited financial statements of Nuvista Pharma Ltd the accumulated profit (Retained Earnings) of NPL after deduction
of net loss of Tk. 94,729,874 incurred for the year ended June 30, 2018 stands at Tk. 133,936,896. This has been carried forward
to the next year’s account of the said subsidiary and has not been dealt within or for the purpose of preparation of this financial
statements.
94 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
7. Investment in Shares
(a) Investment Details (Taka) :
(i) Bangladesh Export Import Co. Ltd. (Note-c)
(ii) Central Depository Bangladesh Ltd. (CDBL)
(iii) Biocare Manufacturing SDN.BHD. , Malaysia-Note (e)
(b) Number of Shares:
Balance
July 01, 2017
Addition/ Adjustment during the Year
Balance
June 30, 2018
5,130,791
1,569,450
11,180,100
17,880,341
New Investment Unrealized Gain/(Loss)
(942,433)
-
1,424,130
481,697
-
-
18,145,620
18,145,620
4,188,358
1,569,450
30,749,850
36,507,658
Balance
July 01, 2017
Addition/ Adjustment during the Year
Stock Dividend
New Issue
Balance
June 30, 2018
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
(iii) Biocare Manufacturing SDN.BHD. , Malaysia-Note (e)
152,249
571,182
600,000
7,612
-
-
-
-
900,000
159,861
571,182
1,500,000
(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 2017-18 was Tk. 26.20 (In 2016-17 Tk. 33.70) in both
Dhaka and Chittagong Stock Exchanges. The amount of Tk.942,433 represents fair value loss.
(d) Shares of Central Depository Bangladesh Ltd. (CDBL) are not traded.
(e) Biocare Manufacturing SDN.BHD., Malaysia:
This represents 1,500,000 Ordinary Shares of Malaysian Ringit (RM) 1 each issued to Beximco Pharmaceuticals Ltd. by BioCare
Manufacturing Sdn Bhd (“BioCare”), Malaysia. Beximco Pharmaceuticals Ltd. has been issued 30% of the equity share of the Malaysian
based company for providing full technical support to set up a manufactiring facility in Seri Iskandar Pharmaceutical Park, Perak,
Malaysia and to produce specialized pharmaceutical products. The amount of Tk.1,424,130 represents exchange fluctuation gain.
8. Inventories
Amount in Taka
This consists of as follows :
June 30, 2018
June 30, 2017
Finished Goods
Work in Process
Raw Materials
Packing Materials
Laboratory Chemicals
Physician Samples
R & D Materials
Materials in Transit
9. Spares & Supplies
This consists of as follows :
Spares & Accessories
Stock of Stationery
Literature & Promotional Materials
744,138,733
205,169,517
2,040,109,375
939,299,203
4,001,948
82,714,044
324,655
649,691,986
4,665,449,461
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
537,366,837
10,936,969
106,477,464
654,781,270
521,797,051
8,784,791
105,521,050
636,102,892
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 95
10. Accounts Receivable
This includes receivable of Tk. 596,463,606 equivalent to US$ 7,190,640 as on June 30 2018 (on 30-06-2017 Tk. 289,820,128
equivalent to US$ 3,618,229) against export sales. Part of the export sales receivables are against Letter of Credit while the rest are
unsecured but considered good.
Accounts Receivable also includes Tk. 2,011,958,959 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. 2,071,859,759 on 31 May, 2018.
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.
11. Loans, Advances and Deposits
Amount in Taka
This is unsecured, considered good and consists of as follows :
June 30, 2018
June 30, 2017
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 Insurance
Overseas Liaison Office
Others
162,932,842
188,082,567
19,642,831
47,836,614
17,600,613
108,792,585
131,833,344
27,004,835
116,813,989
11,608,729
180,739,474
735,793,984
197,698,816
32,698,675
87,761,063
2,066,840,961
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
(a) The maximum amount due from the employees during the year was Tk. 119,172,863 on 31 January 2018.
(b) No amount was due from the directors, managing agent, managers and other officers of the company and any of them
severally or jointly with any other person, except as stated above.
(c) Prepaid Insurance includes the insurance premium paid to German Export Credit Agency Euler Hermes Aktiengesellschaft, Ham
burg for guarantee of the loan which is an integral part of the overseas loan financing agreement with ODDO BHF Aktiengesellshaft,
Frankfurt, Germany. Expired portion of the prepaid insurance has been capitalized.
12. 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.
13. Cash and Cash Equivalents
This consists of as follows:
(a) Cash in Hand (including Imprest Cash)
(b) Cash at Bank :
(i) Current & FC Account
(ii) FDR Account
June 30, 2018
Amount in Taka
June 30, 2017
191,916,333
107,253,933
142,718,744
34,473,477
369,108,554
134,814,500
32,959,592
275,028,025
96 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
14. Issued Share Capital
Amount in Taka
A. Authorized :
June 30, 2018
June 30, 2017
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 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
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
59,512,500
312,911,470
4,055,564,450
517,757,500
3,165,382,980
59,512,500
312,911,470
4,055,564,450
5,951,250 Ordinary Shares of Tk. 10 each were issued to the shareholders of Beximco Infusions Ltd on it’s merger with Beximco
Pharmaceuticals Ltd. in 2005.
41,000,000 fully convertible 5% preference shares of Tk. 100 each were issued in 2009. 50% of the preference shares were converted
into 16,169,191 ordinary shares of Tk. 10 each on February 1, 2010. The rest 50% were converted into 15,121,956 ordinary shares
of Tk. 10 each on May 2, 2010.
C. Composition of Shareholding of Ordinary Shares:
June 30, 2018
No. of shares
% of Share Capital
June 30, 2017
No. of shares % of Share Capital
Sponsors:
A S F Rahman
Salman F Rahman
Other Directors and Associates
Public Issue:
GDRs- London Stock Exchange (AIM)
Foreign Investors’ Shareholdings
(DSE/CSE)
Institutions (ICB, ICB Investors’
Accounts & Others)
Individual Share Holders
D. Distribution Schedule of Ordinary Shares:
Range of Holdings
In number of shares
No. of Shareholders
June 30,
2018
43,579
12,360
969
478
147
72
60
116
163
38
June 30,
2017
46,907
13,387
1,132
576
183
84
82
166
183
41
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
8,235,353
8,254,632
36,999,784
53,489,769
2.03
2.04
9.12
13.19
8,235,353
8,254,632
36,979,784
53,469,769
90,943,627
22.42
90,943,627
74,469,959
18.36
77,141,361
119,603,843
67,049,247
352,066,676
405,556,445
29.49
16.54
86.81
100
98,140,873
85,860,815
352,086,676
405,556,445
2.03
2.04
9.12
13.19
22.42
19.02
24.20
21.17
86.81
100
% of Shareholders
June 30,
2018
75.16%
21.32%
1.67%
0.82%
0.25%
0.12%
0.10%
0.20%
0.28%
0.07%
Number of Shares
June 30,
June 30,
June 30,
2018
2017
2017
74.76%
6,030,643
6,389,847
21.34% 18,111,978
19,743,510
6,952,640
1.80%
8,165,206
6,834,127
0.92%
8,339,317
3,629,536
0.29%
4,615,416
2,493,725
0.13%
2,954,786
2,724,479
0.13%
3,772,353
0.26%
8,267,895
12,083,693
53,639,190
0.29% 48,891,611
0.07% 301,619,811 285,853,127
% of Share Capital
June 30,
2018
1.49%
4.47%
1.71%
1.69%
0.89%
0.61%
0.67%
2.04%
12.06%
74.37%
June 30,
2017
1.58%
4.87%
2.01%
2.06%
1.14%
0.73%
0.93%
2.98%
13.23%
70.47%
Total
57,982
62,741
100%
100% 405,556,445
405,556,445
100%
100%
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 97
E. Market Price of Ordinary Shares:
The shares are listed in Dhaka and Chittagong Stock Exchanges of Bangladesh and GDRs in AIM of London Stock Exchange.
Prices of each Share/ GDR on the last working day of the year were:
June 30 , 2018
June 30 , 2017
Dhaka
Chittagong
AIM
Tk.
Tk.
GBP
93.90
94.70
0.510
113.00
113.00
0.605
F. Option on unissued Ordinary Shares:
There is no option on unissued shares as on 30.06.2018.
15. 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.
16. Long Term Borrowings - Net of Current Maturity
(a) This is arrived at as follows :
Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
Obligation Under Finance Leases
AB Bank
(b) Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
June 30, 2018
2,809,556,317
280,596,178
759,326,232
3,849,478,727
Amount in Taka
June 30, 2017
1,167,114,340
350,296,702
1,118,495,983
2,635,907,025
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. It carries interest @ 6 month’s USD LIBOR plus 2.25% per annum.
(c) 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
Present Value of Finance Lease liability
June 30, 2018
June 30, 2017
260,426,903
336,141,714
596,568,617
(114,965,180)
481,603,437
201,007,259
280,596,178
481,603,437
238,426,406
413,213,083
651,639,489
(132,529,673)
519,109,816
168,813,114
350,296,702
519,109,816
(d) AB Bank
This loan is payable in quarterly installments and is secured by paripassu hypothication along with Janata Bank on all fixed and floating
assets of the Company excepting the machineries and equipments financed by ODDO BHF Aktiengesellshaft, Frankfurt, Germany.
98 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
17. Liability for Gratuity and WPPF & Welfare Funds
Liability for gratuity is the amount payable to the permanent employees at the time of separation from the company. The liability for
WPPF refers to the undistributed portion of Workers’ Profit Participation and Welfare Fund lying with the company.
(a) Gratuity Payable
Opening Balance
Provisions during the year
Paid during the year
Closing balance at end of the Year
(b) Workers Profit Participation and Welfare Fund
18. Deferred Tax Liability
Opening Balance
Addition during the Year :
Deferred Tax on Assets (cost basis)-Note : 33 (b)
Deferred Tax on revalued amount
Closing Balance at end of the Year
19. Short Term Borrowings
Janata Bank Ltd. - Cash Credit-Hypothecation Loan
Liability for UPAS Letter of Credit
Amount in Taka
June 30, 2018
June 30, 2017
529,565,300
155,686,017
685,251,317
(25,247,014)
660,004,303
445,226,921
100,578,000
545,804,921
(16,239,621)
529,565,300
564,457,967
1,224,462,270
587,529,129
1,117,094,429
1,852,665,968
1,756,723,000
16,614,044
20,543,373
1,889,823,385
72,803,945
23,139,023
1,852,665,968
3,897,681,180
1,064,417,066
4,962,098,246
1,239,757,995
245,674,665
1,485,432,660
20. Long Term Borrowings-Current Maturity
This consists of as follows and is payable within next twelve months from the Balance Sheet date:
Project Loan - Local Banks
Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
Obligation Under Finance Leases
AB Bank
21. Creditors and Other Payables
Goods & Services
Provident Fund
Advance Against Sales
Others
-
852,470,599
201,007,259
400,341,697
1,453,819,555
569,160,255
188,151,262
43,576,730
138,649,988
939,538,235
96,418,429
84,706,841
168,813,114
365,851,816
715,790,200
140,880,215
275,950,713
57,922,126
63,410,725
538,163,779
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 99
22. 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)
23. Income Tax Payable
Opening Balance
Provision for the year
Short / (Excess) Provision for previous year
AIT & Treasury deposits during the year
24. Net Sales Revenue
This consists of as follows :
Domestic
Export *
Amount in Taka
June 30, 2018
June 30, 2017
136,464,535
166,983,289
102,140,931
143,234,083
303,447,824
245,375,014
420,924,678
790,580,483
-
1,211,505,161
(778,088,709)
433,416,452
347,233,813
627,764,437
(35,781,848)
939,216,402
(518,291,724)
420,924,678
Amount in Taka
July 2017 -
June 2018
July 2016 -
June 2017
15,903,750,112
1,476,977,889
17,380,728,001
14,430,304,971
1,078,472,001
15,508,776,972
* Equivalent US Dollar 17,953,810 for 2017-18 as against US Dollar 13,672,099 for 2016-17.
Sales represents:
Product Category
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution, Injectable and Inhaler
Diet Care Products
Active Pharmaceutical Ingredients
Liquid Nitrogen
Quantity
Unit
Million pcs.
Million pcs.
Pcs
Kg
Liter
July 2017 -
June 2018
July 2016 -
June 2017
4,520.25
97.08
21,566
141,374
437,986
4,008.10
87.65
36,193
177,737
388,917
100 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
25. Cost of Goods Sold
This is made-up as follows :
Work-in-Process (Opening)
Materials Consumed (Note: 26)
Factory Overhead (Note: 27)
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)
Item wise quantity and value of Finished Goods Stock are as follows:
Stock as June 30, 2018
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
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
Unit
Million pcs.
Million pcs.
Kg
Pcs
Unit
Million pcs.
Million pcs.
Kg
Pcs
26. Materials Consumed
This is made-up as follows:
Opening Stock
Purchase
Closing Stock
Amount in Taka
July 2017 -
June 2018
July 2016 -
June 2017
110,263,528
7,174,927,962
2,462,809,815
9,748,001,305
(205,169,517)
9,542,831,788
648,654,846
10,191,486,634
(191,843,220)
(744,138,733)
9,255,504,681
194,155,965
6,126,293,944
2,287,126,449
8,607,576,358
(110,263,528)
8,497,312,830
639,923,877
9,137,236,707
(164,686,512)
(648,654,846)
8,323,895,349
Quantity
419.50
7.20
9,592
4,918
Quantity
372.34
6.80
11,336
4,094
Value (Tk.)
438,495,650
276,721,452
26,362,126
2,559,505
744,138,733
Value (Tk.)
359,671,620
258,260,476
28,958,108
1,764,642
648,654,846
July 2017 -
June 2018
July 2016 -
June 2017
1,745,626,100
8,412,712,388
(2,983,410,526)
7,174,927,962
1,252,454,731
6,619,465,313
(1,745,626,100)
6,126,293,944
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 101
27. Factory Overhead
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
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Other Expenses
Amount in Taka
July 2017 -
June 2018
July 2016 -
June 2017
861,570,554
204,042,376
22,183,717
2,508,685
196,960
13,724,885
9,364,755
1,799,806
216,131,607
22,062,770
9,211,158
211,932,071
135,414,774
4,961,417
26,780,147
699,635,924
21,288,209
2,462,809,815
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
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 15,775,182.
(b) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures. Also
included therein imported stores and spares that has been consumed during the year.
(c) Other expenses does not include any item exceeding 1% of total revenue.
28. 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
Business Acquisition Cost
Company Secretarial, Regulatory Fee and AGM Expense
Advertisement
Training & Conference
Depreciation
Board Meeting Attendance Fee
Other Expenses
299,668,418
11,320,578
48,306,306
8,507,108
26,412,385
6,605,694
5,965,303
1,600,000
6,036,768
12,688,120
8,104,405
12,619,081
32,250,219
413,705
9,504,679
27,057,743
468,564
77,656,553
595,185,629
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
102 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 6,887,331.
(b) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
(c) Remuneration is paid to the Directors for attending Board and Audit Committee Meetings.
29. Selling, Marketing and Distribution Expenses Amount in Taka
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
Distribution Commission
Delivery Expense
Depreciation & Amortization
Other Expenses
July 2017 -
June 2018
July 2016 -
June 2017
1,212,995,091
77,134,110
8,301,461
424,569,958
53,216,266
40,282,407
17,357,357
9,364,325
48,764,784
96,624,078
30,946,509
261,921,844
421,085,672
10,893,311
128,227,175
54,760,086
120,383,504
234,392,430
179,142,387
90,578,669
27,496,402
3,548,437,826
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
218,636,233
172,852,703
71,648,256
24,324,781
3,214,279,102
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 28,035,404.
(b) Distribution commission on local sales of Formulation and IV Fluid products were 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 expenses.
30. Other Income
Interest Income
Dividend Income
Royalty
Technology Transfer Income*
Income From sale of Product Dossier
Distribution Commission
Exchange Rate Fluctuation Gain / (Loss) **
Profit/(Loss) on Sale of Fixed Assets (Note 40)
54,928,425
1,504,092
6,093,728
18,145,620
4,959,000
22,851,313
(42,662,242)
(846,352)
64,973,584
161,110,825
1,427,955
-
10,554,000
-
-
(26,444,057)
(1,795,892)
144,852,831
* Equity shares were issued by Biocare Manufacturing SDN. BHD. Malaysia against transfer of technologies.
**This is arrived after netting off exchange rate fluctuation loss amounting Tk. 49,510,471 on account of outstanding foreign currency
loan from ODDO BHF Aktiengesellshaft, Frankfurt, Germany translated at exchange rate prevailing on Financial Position date.
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 103
31. Finance Cost
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
July 2017 -
June 2018
361,626,873
(21,183,793)
73,199,604
85,080,425
13,376,260
512,099,369
Amount in Taka
July 2016 -
June 2017
303,316,773
13,904,256
111,145,912
107,554,563
21,081,658
557,003,162
* Net of Interest rebate received as per the terms of the Sanction letter of the loan for the timely repayment of all the installments.
32. 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).
33. Income Tax Expenses
This consists of as follows :
(a) Current Tax
(i) Tax provision for current Year (Note 3.9)
(ii) Short/(Excess) Provision for earlier year
(b) Deferred Tax Expense
Deferred Tax Expense is arrived at as follows :
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred Liability (Gratuity)
Temporary Difference
Tax Rate
Deferred Tax Liability at end of the Year
Deferred Tax Liability at beginning of the Year
Change in Deferred Tax Liability
Deferred Tax on Revaluation Surplus
Deferred Tax charged to Profit or Loss and Other Comprehensive Income
34. Other Comprehensive Income/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
Exchange Rate Fluctuation Gain on Investment in Biocare Manufacturing
35. Earnings Per Share (EPS)
790,580,483
-
790,580,483
16,614,044
807,194,527
8,219,297,841
(660,004,303)
7,559,293,538
25%
1,889,823,385
1,852,665,968
37,157,417
(20,543,373)
16,614,044
627,764,437
(35,781,848)
591,982,589
72,803,945
664,786,534
7,940,229,171
(529,565,300)
7,410,663,871
25%
1,852,665,968
1,756,723,000
95,942,968
(23,139,023)
72,803,945
(942,433)
1,424,130
481,697
1,953,407
626,100
2,579,507
(a) Earnings attributable to the Ordinary Shareholders
(b) Weighted average number of Shares outstanding
during the year (Note 3.15)
Earnings Per Share (EPS)
Tk.
Tk.
2,558,971,263
2,226,695,124
405,556,445
6.31
405,556,445
5.49
104 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
36. Net Asset Value (NAV) Per Share
Amount in Taka
Total Assets
Less Total Liabilities
Net Assets
Number of Shares at Financial Position date
Net Asset Value (NAV) Per Share
37. Net Operating Cash Flow Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Shares at Financial Position date
Net Operating Cash Flow Per Share (NOCFPS)
*Restated
June 30, 2018
June30, 2017
42,165,015,439
(15,060,625,508)
27,104,389,931
405,556,445
66.83
34,084,132,870
(9,011,706,970)
25,072,425,900
405,556,445
61.82
1,848,067,034
405,556,445
4.56
2,388,290,321
405,556,445
5.89*
38. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
2,558,971,263
2,226,695,124
Adjustment to reconcile net profit to net cash provided by operating activities :
Non-cash Expenses:
Depreciation
Amortization
Gratuity & WPPF
Technology Transfer Income -Biocare Manufacturing SDN. BHD., Malaysia
Exchange rate fluctuation loss on Bank Loan - Foreign Currency
Deferred Tax
Non-operating items:
Dividend Income
Loss on Sale of Fixed Assets
Changes in working Capital
(Increase)/Decrease in Inventories
(Increase)/Decrease in Spares & Supplies
(Increase)/Decrease in Accounts Receivable
(Increase)/Decrease in Loans, Advances & Deposits
Increase/(Decrease) in Creditors and Other Payables
Increase/(Decrease) in Accrued Expenses
Increase/(Decrease) in Income Tax Payable
Net cash Generated from Operating Activities
972,619,072
773,078,369
44,193,967
107,367,841
(18,145,620)
49,510,471
16,614,044
(657,740)
(1,504,092)
846,352
(1,682,865,561)
(1,197,360,400)
(18,678,378)
(569,604,280)
(369,161,543)
401,374,456
58,072,810
12,491,774
1,848,067,034
1,010,275,459
755,961,160
26,290,586
132,895,970
(10,554,000)
32,877,798
72,803,945
367,937
(1,427,955)
1,795,892
(849,048,199)
(697,757,386)
(21,496,780)
(486,733,071)
104,624,767
84,335,167
94,288,239
73,690,865
2,388,290,321
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 105
39. Related Party Disclosures Amount in Taka
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties
(a) I & I Services Ltd.
Nature of Transactions
Local Delivery
Distribution Commission
(b) Bangladesh Export Import Co. Ltd. Short Term Investment & Interest there on
(C) Nuvista Pharma Ltd.
Toll Expense
Distribution Commission Income
Value of Transaction
19,075,349,798
234,392,430
547,179,732
3,970,778
18,584,888
Balance at year end
2,011,958,959
339,397,174
2,313,836
18,584,888
40. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the year ended June 30, 2018:
Particulars of
Assets
Plant & Machinery
Transport & Vehicle
Tk.
Cost Accumulated
Depreciation
29,066,434
3,057,667
32,124,101
30,979,553
3,345,000
34,324,553
Written Down
Value
1,913,119
287,333
2,200,452
Sales Price
782,650
571,450
1,354,100
Profit /
(Loss)
Mode of
Disposal
Name of Parties
(1,130,469) Negotiation Different Individuals
284,117 Negotiation Different Individuals
(846,352)
41. 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 2017 - June 2018
228,156,894
10,407,588
10,187,070
25,467,675
5,438,661
6,705,192
286,363,080
(b) The above includes salary, allowances, and perquisites amounting Tk.41,244,135 paid to the Managing Director.
(c) This also includes Tk. 468,564 paid to Directors including Independent Directors for attending Board and Audit Committee
meetings.
(d) No amount of money was expended by the company for compensating any member of the board for special services rendered.
42. Production Capacity and Utilization
Item
Unit
Production Capacity
Actual Production
Capacity Utilization
July 17 -
June 18
July 16 -
June 17
July 17 -
June 18
July 16 -
June 17
July 17 -
June 18
July 16 -
June 17
Tablet, Capsule, Suppository & DPI
Million Pcs
4,349.64
4,241.14
4,741.32
4,140.72
109.00% 97.63%
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable and Inhaler
Million Pcs
94.49
100.71
97.83
87.81
103.53%
87.19%
Production does not include goods manufactured under contract manufacturing arrangement from third-party manufacturing sites.
106 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
43. Capital Expenditure Commitment
There was no capital expenditure contracted but not incurred or provided for at June 30, 2018.
44. Finance Lease Commitment
At June 30, 2018 the company had annual commitment under finance leases as set out below :
Leases expiring within 1 year
Leases expiring within 2-5 years (inclusive)
Tk.
201,007,259
280,596,178
481,603,437
45. Claim not Acknowledged as Debt
There was no claim against the company not acknowledged as debt as on June 30, 2018.
46. Un-availed Credit Facilities
There is no credit facilities available to the Company under any contract, other than credit available in the ordinary course of business
and not availed of as on June 30, 2018.
47. Payments Made in Foreign Currency
Import of Machinery, Equipment & Spares
Import of Materials
Regulatory Fees, Foreign Currency Loan repayment & Other
Expenses
48. Foreign Exchange Earned / Received
(a) Collection from Export Sales
(b) Loan from ODDO BHF Aktiengesellshaft, Germany
(c) Royalty and other Income
49. Commission / Brokerage to selling agent
Foreign Currency (Equivalent US$)
Taka
21,905,397
53,674,485
12,406,551
1,789,972,659
4,391,116,168
1,023,429,971
Foreign Currency (US$)
14,700,850
33,653,959
133,507
Taka
1,214,290,222
2,820,121,650
11,052,728
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.
50. 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.
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 107
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.
51. Events after The Reporting Period
(a) The directors recommended 12.5% cash dividend (i.e. Tk. 1.25 per share) for the year 2017-18. The dividend proposal is subject
to shareholders’ approval at the forthcoming annual general meeting.
(b) A separate entity named Beximco Pharma API Limited has been formed with a paid up capital of Taka 20,000,000 divided
into 2,000,000 shares of Tk. 10 each. Beximco Pharmaceuticals Ltd. holds 1,999,990 shares of the total paid up shares of the
company. Beximco Pharma API Limited will setup manufacturing facilities in the API Industrial Park (at Gozaria, Munshiganj)- newly
established by the government in order to promote API manufacturing in the country. Two plots measuring 3.27 acres land have
been alloted in the name of Beximco Pharmaceuticals Ltd. which are now in the process of being transfered in favour of Beximco
Pharma API Limited.
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.
52. 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
52.01 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 June 30, 2018 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.
52.02 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.
52.03 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.
108 | Annual Report 2017-18 | Audited Financial Statements-Beximco Pharma
(a) Currency risk
The company is exposed to currency risk on certain revenues and purchases such as revenue from foreign customers and import
of raw material, machineries and equipment. Majority of the company’s foreign currency transactions are denominated in USD and
relate to procurement of raw materials, machineries and equipment from abroad. The company have received foreign currency
loan which shall be repaid in foreign currency.
(b) Interest rate risk
Interest rate risk is the risk that arises due to changes in interest rates on borrowing. The foreign currency loan is subject to floating
rates of interest. Local loans are, however, not significantly affected by fluctuations in interest rates. The company has not entered
into any type of derivative instrument in order to hedge interest rate risk as at the reporting date.
Salman F Rahman
Vice Chairman
Dhaka
October 25, 2018
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Audited Financial Statements-Beximco Pharma | Annual Report 2017-18 | 109
Audited Financial Statements-Nuvista Pharma
Audited Financial Statements
Nuvista Pharma Ltd
For the Year Ended June 30, 2018
AUDITORS’ REPORT
To the shareholders of Nuvista Pharma Limited
We have audited the accompanying financial statements of Nuvista Pharma Limited which comprise the statement of financial
position as at 30 June 2018 and the statement of profit or loss and other comprehensive income, statement of changes in equity
and statement of cash flows for the year then ended, and a summary of significant accounting policies and other 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
Bangladesh Financial Reporting Standards (BFRSs), 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 the financial statements based on our audit. We conducted our audit in accordance with
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 the auditors’ 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, the auditors consider internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, 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 present fairly, in all material respects, the financial position of Nuvista Pharma Limited as
at 30 June 2018 and its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial
Reporting Standards (BFRSs), and comply with the Companies Act 1994 and other applicable laws and regulations.
We also report that:
(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purpose of our audit and made due verification thereof.
(b)
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 those books.
(c) The statements of financial position and statement of profit or loss and other comprehensive income dealt with by the report
are in agreement with the books of account and returns.
Dhaka, 13 October 2018
___________________
(A. Qasem & Co.)
Chartered Accountants
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 111
Nuvista Pharma Limited
Statement of Financial Position
As at 30 June 2018
ASSETS
Non-current assets
Property, plant and equipment
Capital work-in-progress
Loan to employees
Current assets
Advances, deposits and prepayments
Loan to employees
Advance income tax net of tax provision
Inventories
Trade receivables
Cash and cash equivalents
Total assets
EQUITY AND LIABITIES
Shareholders’ equity
Share capital
Reserves and surplus
Non-current liabilities
Lease obligation - long term portion
Long term bank borrowings
Deferred liability - gratuity payable
Deferred tax liabilities
Current liabilities and provisions
Lease obligation - current portion
Short term bank borrowings
Trade payables
Liabilities for expenses
Other liabilities
Total liability
Total equity and liabilities
Notes
30 June 2018
Taka
30 June 2017
Taka
4
5
6
7
6
8
9
10
11
12
13
14
15
16
17
18
19
20
1,245,065,897
15,956,525
6,099,718
1,267,122,140
42,294,454
3,679,374
32,568,508
402,528,046
26,879,082
24,627,392
532,576,856
1,799,698,996
117,501,600
334,874,560
452,376,160
-
167,946,540
99,704,228
137,448,710
405,099,478
-
753,898,579
54,488,508
100,860,014
32,976,257
942,223,358
1,347,322,836
1,799,698,996
1,316,345,370
10,752,416
9,794,183
1,336,891,969
14,974,627
3,729,656
21,533,188
334,192,418
411,329,751
26,131,694
811,891,334
2,148,783,303
117,501,600
430,784,450
548,286,050
23,341,735
202,210,694
148,114,957
109,160,066
482,827,452
16,521,684
805,974,589
122,743,736
134,755,028
37,674,764
1,117,669,801
1,600,497,253
2,148,783,303
Footnotes:
1. Auditors’ Report - page 1
2. The annexed notes 1 to 34 form an integral part of these finacial statements.
Chairman
Managing Director Director
Dhaka, 13 October 2018
112 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
As per our report of same date
___________________
(A. Qasem & Co.)
Chartered Accountants
Nuvista Pharma Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2018
Revenue
Cost of goods sold
Gross profit
General and administration expenses
Selling and distribution expenses
Profit/(loss) from operations
Non-operating income/(expenses)
Interest expenses
Profit/(loss) before tax and WPPF
Contribution to WPPF
Profit/(loss) before tax
Tax expense
Current
Deferred
Profit/(loss) after tax
Other comprehensive income
Notes
30 June 2018
Taka
30 June 2017
Taka
21
22
23
24
25
26
8
16
1,319,875,856
1,807,232,987
(666,021,602)
(941,807,008)
653,854,254
865,425,979
(120,728,065)
(128,474,244)
(496,322,557)
(524,355,150)
36,803,632
(2,543,380)
(92,782,227)
(58,521,975)
-
212,596,585
1,340,827
(90,276,796)
123,660,616
(5,888,601)
(58,521,975)
117,772,015
(7,919,255)
(28,288,644)
(36,207,899)
(94,729,874)
-
(29,480,645)
(25,635,237)
(55,115,882)
62,656,133
-
Total comprehensive income/(loss) for the year
(94,729,874)
62,656,133
Earnings Per Share (EPS)
(8.06)
5.33
Footnotes:
1. Auditors’ Report - page 1
2. The annexed notes 1 to 34 form an integral part of these financial statements.
Chairman
Managing Director Director
Dhaka, 13 October 2018
As per our report of same date
___________________
(A. Qasem & Co.)
Chartered Accountants
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 113
Nuvista Pharma Limited
Statement of changes in equity
For the year ended 30 June 2018
Particulars
General
reserve
Share
premium
Share
capital
Taka
Taka
Taka
Reserves and surplus
Revaluation
Pre-
reserve
incorpora-
tion
profit
Taka
Taka
Retained
earnings
Total
reserves
and surplus
Total
Taka
Taka
Taka
Balance as at 1 July 2016
58,750,800
7,511,991
30,844,170
243,737
162,337,766 167,939,266
368,876,930
427,627,730
Isssue of share capital
Dividend paid
Profit after tax for the year
ended 30 June 2017
Balance as at 30 June 2017
Number of shares
Net assets value per share
Balance as at 1 July 2017
Dividend paid
Loss after tax for the year
ended 30 June 2018
Balance as at 30 June 2018
Number of shares
Net assets value per share
58,750,800
(748,613)
(748,613)
58,750,800
(748,613)
-
117,501,600
-
7,511,991
-
30,844,170
-
243,737
-
162,337,766
62,656,133
229,846,786
62,656,133
430,784,450
62,656,133
548,286,050
11,750,160
46.66
117,501,600
7,511,991
30,844,170
243,737
162,337,766 229,846,786
(1,180,016)
430,784,450
(1,180,016)
548,286,050
(1,180,016)
-
117,501,600
-
7,511,991
-
30,844,170
-
243,737
-
(94,729,874)
162,337,766 133,936,896
(94,729,874)
334,874,560
(94,729,874)
452,376,160
11,750,160
38.50
Chairman Managing Director Director
As per our report of same date
Dhaka, 13 October 2018
(A. Qasem & Co.)
Chartered Accountants
114 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
Nuvista Pharma Limited
Statement of cash flows
For the year ended 30 June 2018
A.
Cash flows from operating activities
Cash receipts from customers
Cash paid to suppliers and employees
Cash generated from operation
Interest paid
Income tax paid
Net cash generated from operating activities
30 June 2018
Taka
30 June 2017
Taka
1,704,326,525
(1,421,067,187)
283,259,338
(95,952,969)
(18,954,575)
168,351,794
1,593,417,058
(1,446,813,906)
146,603,152
(90,276,796)
(17,254,894)
39,071,462
B.
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
(55,549,997)
13,077,500
(42,472,497)
(186,753,414)
2,185,252
(184,568,162)
C.
Cash flows from financing activities
Long term bank borrowings
Short term bank borrowings
Lease finance
Dividend paid
Share Capital
Net cash (used in)/from financing activities
Net increase/(decrease) in cash and cash equivalents (A+B+C)
Opening cash and cash equivalents
Closing cash and cash equivalents (D+E)
D.
E.
F.
Net operating cash flow per share
Number of shares
(34,264,154)
(52,076,010)
(39,863,419)
(1,180,016)
-
(127,383,599)
(1,504,302)
26,131,694
24,627,392
(120,689,044)
241,237,743
(14,544,125)
(748,613)
58,750,800
164,006,761
18,510,061
7,621,633
26,131,694
14.33
3.33
11,750,160
11,750,160
Chairman
Managing Director Director
As per our report of same date
Dhaka, 13 October 2018
(A. Qasem & Co.)
Chartered Accountants
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 115
Nuvista Pharma Limited
Notes to the financial statements
As at and for the year ended 30 June 2018
1. Reporting entity
1.1 Nuvista Pharma Limited (“the company”) was originally incorporated as a private limited company in 1973 in Bangladesh as
Organon (Bangladesh) Limited under the Companies Act 1913. The company in its extra ordinary general meeting of the shareholders
held on 02 November 2006 changed the name of the company from “Organon (Bangladesh) Limited” to “Nuvista Pharma Limited”
which was approved by the Registrar of Joint Stock Companies and Firms on 29 November 2006.
The company in its extra ordinary general meeting held on 05 May 2011 made some amendments to the Memorandum and Articles
of Association with a view to broadening the objects clause of the company (subsequently approved by the High Court on 12 October
2011), converting it into a Public Limited company, increasing its authorized capital, complying with the Companies Act 1994, and
eliminating certain redundant provisions in the Articles of Association of the company consequent upon the transfer of Organon
International’s shareholding in the Company, which were filed with the Registrar of Joint Stock Companies and Firms, Dhaka.
On 2nd April 2018, Beximco Pharmaceuticals Limited (BPL), a public limited company listed with Dhaka Stock Exchange, Chittagong
Stock Exchange and London Stock Exchange has acquired majority shareholdings in Nuvista Pharma Limited (NPL) and through this
acquisition BPL has become the immediate and ultimate parent of the company. Current shareholding comprises 85.22% by BPL,
12.92% by Government of Bangladesh and rest by other local shareholders.
1.2 The address of the registered office of the company is Plot no. 107/A, Mascot Plaza (8th floor), Sonargaon Janapath, Sector-7,
Uttara C/A, Dhaka-1230, Bangladesh.
1.3 The company produces various pharmaceutical products including oral contraceptives, hormone, steroid, anti-histamine, anti-
fibrinolytic, anti-infective, cardiac, gastrointestinal, musculoskeletal, respiratory, vitamin & mineral supplement and women’s health
products which are sold in the local market.
2. Basis of preparation
2.1 Statement of compliance
The financial statements have been prepared in accordance with Bangladesh Accounting Standards (BASs), International
Accounting Standards (IASs), Bangladesh Financial Reporting Standards (BFRSs) and International Financial Reporting Standards
(IFRSs), the Companies Act 1994 and other applicable laws and regulations.
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except revaluation of certain property, plant and
equipment.
2.3 Functional and presentational currency
These financial statements are prepared in Bangladeshi Taka (Taka/Tk.), which is the company’s functional currency. All financial
information has been presented in Taka and rounded off to the nearest integer.
2.4 Use of estimates and judgments
The preparation of financial statements requires management to make judgment, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an on going basis.
2.5 Going concern
The company has adequate resources to continue its operation for the foreseeable future. For this reason the directors continue
to adopt going concern basis in preparing the financial statements. The current resources and credit facilities of the company are
sufficient to meet the present requirements of its existing business.
116 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
2.6 Statement of cash flows
Statement of cash flows has been prepared in accordance with as per BAS 7: “Statement of cash flows” under direct method.
2.7 Reporting period
These financial statements cover one year from 1 July 2017 to 30 June 2018.
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
3.1 Shareholders’ capital - paid-up capital
Paid-up capital represents the total amount of shareholders capital that has been paid in full by the ordinary shareholders. Holders
of ordinary shares are entitled to receive dividends as declared from time to time.
3.2 Lease transactions
All lease transactions have been classified based on the extent to which risks and rewards incident to ownership of leased assets lie
with the lessor or lessee. According to this classification, all the lease transactions have been identified as finance lease as per BAS
17: “Leases”, based on the substance of the transactions not merely the legal form.
Finance lease has been recognised as assets and liabilities in the Statement of financial position at amount equal at the inception
of lease to the lower of fair value of leased property and present value of minimum lease payments. The interest rate implicit in the
lease has been used to calculate the present value of minimum lease payments.
3.3 Staff gratuity fund
The company operates an unfunded gratuity scheme, provision in respect of which is made annually for all eligible employees.
Gratuity payable to all eligible employees at the end of each year is determined on the basis of the existing rules and regulations of
the company.
3.4 Employees provident fund
The company subscribes to a contributory provident fund for its permanent employees which is administered by a Board of Trustees.
3.5 Property, plant and equipment
3.5.1 Recognition and measurement
Property, plant and equipment (PPE) is recognised as an asset if it is probable that future economic benefits associated with the asset
will flow to the entity and the cost of the item can be measured reliably.
Property, plant and equipment are stated at cost or valuation less accumulated depreciation and impairment losses, if any. Cost
includes expenditure that is directly attributable to the acquisition of the assets, bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by management.
3.5.2 Subsequent costs
The costs of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the company and its costs can be measured reliably.
The costs of the day to day servicing of property, plant and equipment are recognised in the Statement of profit or loss and other
comprehensive income as incurred.
3.5.3 Depreciation
Depreciation is recognised in the Statement of profit or loss and other comprehensive income on a straight line basis over the
estimated useful lives of each item of property, plant and equipment. Depreciation on property, plant and equipment is charged
from the month of acquisition. In case of disposals, depreciation is charged up to the immediate previous month of disposal. No
depreciation is charged on leasehold land and capital work-in-progress. Depreciation is calculated and charged on all other property,
plant and equipment at the following rates on cost or valuation, considering the estimated useful lives of the assets:
Factory building and warehouse
Motor cars and vans
Plant, machinery and equipment
Computer and IT equipment
Electric fixtures and fittings
Furniture and fittings
2.5%
20%-25%
5% -15%
30%
7%
6%
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 117
Gain or loss on sale of property, plant and equipment is recognised in the Statement of profit or loss and other comprehensive
income as per provision of BAS 16: “Property, plant and equipment”.
3.6 Impairment
3.6.1 Recognition
The carrying value of the company’s assets, other than inventories, are reviewed at each Statement of financial position date to
determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
An impairment loss is recognized whenever the carrying amount of the asset or its cash-generating unit exceeds its recoverable
amount. Impairment losses, if any, are recognised in the Statement of profit or loss and other comprehensive income. For the assets
that have indefinite useful life, the recoverable amount is estimated at each Statement of financial position date.
No indication of impairment was observed in the year ending 30 June 2018.
3.6.2 Calculation of recoverable amount
The recoverable amount of an asset is the greater of net selling price and value in use. The estimated future cash flows are
discounted to their present value using discount rate that reflects the current market assessment of the time value of money and
the risk specific to the asset. For an asset that does not generate significantly independent cash inflows, the recoverable amount is
determined for the cash generating unit to which the asset belongs.
3.6.3 Reversal of impairment
An impairment loss recognised in prior periods for an asset shall be reversed if, and only if, there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortization, had no impairment loss been recognised for the asset in prior years.
There was no reversal of impairment in the year ended 30 June 2018.
3.7 Capital work-in-progress
Capital work-in-progress represents the cost incurred for acquisition and/or construction of items of property, plant and equipment
that were not ready for use at the year end and these are stated at cost.
3.8 Taxation
Tax on the Statement of profit or loss and other comprehensive income for the year comprises current and deferred tax. Tax is
recognised in the Statement of profit or loss and other comprehensive income except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.
3.8.1 Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
Statement of financial position date, and any adjustment to tax payable in respect of previous years.
3.8.2 Deferred tax
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial
recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a
business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the
foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying
amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax assets and
liabilities are offset if there is a legal enforceable right to offset current tax liabilities and assets, and they relate to income taxes
levied by the same tax authority on the same taxable entity.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that is no
longer probable that the related tax benefit will be realised.
3.9 Inventories
Inventories are valued at the lower of cost and Net Realisable Value (NRV).
118 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
Costs of raw materials, chemicals and packing materials are valued at cost.
Costs of semi-finished and work-in-process inventories include cost of materials and allocated manufacturing overhead.
Spare parts, laboratory consumables and miscellaneous items are valued at cost.
3.10 Trade receivables
Trade receivables at the year end are stated at amounts which are considered realisable.
3.11 Foreign currency
3.11.1 Foreign currency transactions
Foreign currency transactions are converted into equivalent Taka at the ruling exchange rates on the respective dates of such
transactions and subsequently retranslated using the rate at the date of settlement.
3.11.2 Foreign currency translations
Monetary assets and liabilities denominated in foreign currencies have been converted into Taka at the exchange rate ruling at the
year end.
3.11.3 Translation gains and losses
Foreign exchange difference arising on translation are recognised in the Statement of profit or loss and other comprehensive
income.
3.12 Provisions
A provision is recognised in the Statement of financial position when the company has a legal or constructive obligation as a result
of past events, and 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.
3.13 Revenue recognition
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and
VAT. Revenue is recognised when significant risks 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, there is no continuing
management involvement with the goods, and the amount of revenue can be measured reliably. Transfer of risk and rewards occurs
for the sale of goods, when the product is delivered to the customers along with dispatch documents and invoices.
Toll income is recognised when the products are manufactured and delivered under a toll agreement with a third party.
3.14 Interest expenses
Interest expense comprises interest expense on overdraft, import loan, demand loan, finance lease and term loan. All interest
expenses are recognised in the Statement of profit or loss and other comprehensive income when it accrues.
3.15 Workers’ Profit Participation Fund (WPPF)
The company provides 5% of its net profit before tax after charging such expense as WPPF in accordance with Bangladesh Labour
Act 2006.
3.16 Events after the reporting date
Events after the reporting date that provide additional information about the company’s position at the reporting date are reflected
in the financial statements. Events after the reporting date that are not adjusting events are disclosed in the notes when material.
3.17 General
Previous year’s figures have been rearranged/reclassified wherever considered necessary to conform to current year’s
presentation.
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 119
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120 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
4.1 Depreciation charge has been allocated as under:
Conversion cost included in cost of goods sold (Note 22.3) 80,838,538
30 June 2018 30 June 2017
Taka
Taka
78,811,500
General and administration expenses (Note 23) 6,735,673
Selling and distribution expenses (Note 24) 18,316,805
105,891,016
4,747,821
15,140,240
98,699,561
4.2 Disclosure for revalued assets
The leasehold land is stated at revalued amount on the basis of the reports of external surveyor. The surplus on revaluation over the
original cost of the assets was credited to revaluation reserve.
Land was revalued in 1976 for the first time. The company once again revalued its land, plant and machinery, and equipment at the
time of divestment of Organon (Bangladesh) Limited in 2006. The Company’s land was further revalued in 2010.
5. Capital work-in-progress
As at
1 July
2017
Taka
Addition
during
the year
Taka
Transfer to
property, plant
and equipment
Taka
Leasehold land
Plant and machinery
Motor vehicles
Electric fixture and fittings
Furniture
Equipment
Computer and IT equipment
Balance as at 30 June
6. Loan to employees
-
8,985,317
-
-
-
87,099
1,680,000
10,752,416
1,306,722
4,629,586
28,154,300
847,000
90,000
16,006,560
4,515,829
55,549,997
Car loan
General Loan
Current portion of loan to employees
Balance as at 30 June
7. Advances, deposits and prepayments
Advance against operating expenses
Rent advance
Security deposits
Lease deposits
VAT
Prepaid insurance
Others
Balance as at 30 June
8. Advance income tax, net of tax provision
Balance as at 1 July
AIT and treasury deposits during the year
Provision for the year
Short provision for earlier years
Balance as at 30 June
1,306,722
737,796
28,154,300
847,000
90,000
13,014,241
6,195,829
50,345,888
30 June
2018
Taka
7,596,179
2,182,913
9,779,092
(3,679,374)
6,099,718
1,407,976
1,700,850
2,631,154
-
31,556,463
4,800,492
197,519
42,294,454
21,533,188
18,954,575
(7,919,255)
-
32,568,508
As at
30 June
2018
Taka
-
12,877,107
-
-
-
3,079,418
-
15,956,525
30 June 2017
Taka
11,287,839
2,236,000
13,523,839
(3,729,656)
9,794,183
1,131,079
4,918,950
2,341,154
1,668,003
122,842
4,670,616
121,983
14,974,627
33,758,939
17,254,894
(17,500,000)
(11,980,645)
21,533,188
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 121
9. Inventories
Stocks
Finished goods
Semi-finished and Work-in-process
Raw materials
Chemicals
Packing materials
Materials-in-transit
Stores
Spare parts
Laboratory consumables
Miscellaneous items
Spares-in-transit
Balance as at 30 June
10. Trade receivables
Ageing of the trade receivables is as follows:
Receivables due over six months
Receivables due below six months
Balance as at 30 June
Above receivables are unsecured and considered good.
11. Cash and cash equivalents
Cash in hand
Cash at banks
Eastern Bank Limited
HSBC
The City Bank Limited
Mutual Trust Bank Limited
Dhaka Bank Limited
BRAC Bank Limited
IFIC Bank Limited
Janata Bank Limited
National Bank Limited
Balance as at 30 June
122 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
30 June 2018
Taka
30 June 2017
Taka
119,998,485
57,553,706
143,365,346
23,977,793
31,820,560
16,682,330
393,398,220
7,666,099
330,437
518,687
614,603
9,129,826
402,528,046
68,228,503
88,832,381
96,328,190
22,431,222
27,566,362
22,724,278
326,110,936
5,914,939
341,908
1,597,556
227,079
8,081,482
334,192,418
6,284,139
20,594,943
26,879,082
-
411,329,751
411,329,751
243,281
58,797
41,669
-
1,233,878
644,326
194,513
66,992
16,553,213
5,432,489
217,031
24,384,111
24,627,392
353,219
773
26,530
-
43
25,469,869
-
-
222,463
26,072,897
26,131,694
12. Share capital
Authorised
50,000,000 Ordinary shares of Tk 10 each
Issued, subscribed and paid-up
11,579,160 Ordinary shares of Tk 10 each issued for cash
171,000 Ordinary shares of Tk 10 each issued for
consideration other than cash
11,750,160
Shareholding position
30 June 2018
Taka
30 June 2017
Taka
500,000,000
500,000,000
115,791,600
115,791,600
1,710,000
117,501,600
1,710,000
117,501,600
Beximco Pharmaceuticals Limited
Government of Bangladesh
Mr. Akhter Matin Chaudhury
Mr. Kanai Lal Saha
Mr. Asif Ahmed
Mr. Rahbar Alam Anwar
Other shareholders (2018:28; 2017:27)
Nominal value (Taka)
Percentage of holding (%)
30 June 2018
100,134,740
15,186,000
-
-
-
-
2,180,860
117,501,600
30 June2017
-
15,186,000
64,961,380
14,832,290
14,085,620
6,133,450
2,302,860
117,501,600
30 June 2018
85.22
12.92
-
-
-
-
1.86
100
30 June 2017
-
12.92
55.29
12.62
11.99
5.22
1.96
100
12.1 In 2012, the company raised its paid-up capital from Tk. 9,791,800 to Tk. 58,750,800 by issuing 4,895,900 rights share to the
existing shareholders on the basis of 5R:1 (i.e. five rights share against one existing share held on the record date). However,
the subscription against the rights share (632,750 share of Tk. 10 each) held by the Ministry of Industries, Govt. of Bangladesh
was received on 20 June 2013.
12.2 In 2017, the company further raised its paid-up capital from Tk. 58,750,800 to Tk. 117,501,600 by issuing 5,875,080 rights
share to the existing shareholders on the basis of 1R:1 (i.e. one rights share against one existing share held on the record date).
13. Reserves and surplus
General reserve
Share premium (Note 13.1)
Pre-incorporation profit
Revaluation reserve (Note 13.2)
Retained earnings
Balance as at 30 June
13.1 Share premium
30 June 2018
Taka
7,511,991
30,844,170
243,737
162,337,766
133,936,896
334,874,560
30 June 2017
Taka
7,511,991
30,844,170
243,737
162,337,766
229,846,786
430,784,450
This represents the amount received on 48,959 ordinary shares @ Tk. 630 each issued in 1997.
13.2 Revaluation reserve
This represents revaluation surplus on revaluation of land made during 2006 and 2010.
14. Long term bank borrowings
Dhaka Bank Limited (Note 14.1)
The City Bank Limited
Mutual Trust Bank Limited
Total long term bank borrowings
Less: Current portion (Note 17)
Balance as at 30 June
30 June 2018
Taka
283,116,730
-
-
283,116,730
(115,170,190)
167,946,540
30 June 2017
Taka
111,087,949
237,500,000
6,271,470
354,859,419
(152,648,725)
202,210,694
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 123
14.1 Dhaka Bank Limited
All loan liabilities outstanding with Mutual Trust Bank Limited and The City Bank Limited and lease finance liabilities with
United Finance Limited were taken over by Dhaka Bank Limited with effect from 29 March 2018. Loan liabilities outstanding
with Brac Bank Limited was also taken over by Dhaka Bank Limited with effect from 10 May 2015.
This also represents amount outstanding against the term loans taken from Dhaka Bank Limited on various dates for setting
up the new Oral Solids facility and equipments at the factory.
14.2 Collateral
All loans are secured by a registered mortgage on specific factory land and buildings of the company.
14.3 Security
All loans are also secured with respect to the following:
a) Registered (1st charge) hypothecation on present and future plant and machinery, equipment, furniture and fixture of the
company.
b) Registered (1st charge) hypothecation over all stock, book debts and receivables of the company.
c) Shares held by Beximco Pharmaceuticals Ltd. are kept under lien with Dhaka Bank Ltd.
d) Corporate guarantee to be issued by Beximco Pharmaceuticals Limited on a later date.
15. Deferred liability - gratuity payable
Balance as at 1 July
Add : Provision made during the year
Less: Payments made during the year
Balance as at 30 June
16. Deferred tax liabilities
Deferred tax liabilities arrived at as follows:
30 June 2018
Taka
30 June 2017
Taka
148,114,957
13,093,910
161,208,867
(61,504,639)
99,704,228
137,844,382
35,841,729
173,686,111
(25,571,154)
148,114,957
Carrying
amount on
statement
of financial
position date
Tax base
Taxable/
(deductible)
temporary
difference
Taka
Taka
Taka
Year: 2017-2018
Property, plant and equipment
Provision for gratuity (net of payment)
Temporary difference
969,457,185
(99,704,228)
558,893,333
-
Applicable tax rate for items recognised in statement of comprehensive income
410,563,852
(99,704,228)
310,859,624
35%
Applicable tax rate for items recognised in equity
15%
Deferred tax Liabilities (a) (108,800,869)
(28,647,841)
Deferred tax liabilities on revaluation surplus
Net deferred tax liabilities (137,448,710)
124 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
Carrying
amount on
statement
of financial
position date
Taka
Tax base
Taxable/
(deductible)
temporary
difference
Taka
Taka
Year: 2016-2017
Property, plant and equipment
Provision for gratuity (net of payment)
Temporary difference
1,042,043,379
(148,114,957)
663,893,494
-
Applicable tax rate for items recognised in statement of comprehensive income
Applicable tax rate for items recognised in equity
Deferred tax Liabilities (b)
Deferred tax Liabilities on revaluation surplus
Net deferred tax liabilities
Deferred tax recognised in the statement of profit or loss and other
comprehensive income in 2017-2018 (a-b)
Deferred tax recognised in the statement of profit or loss and other
comprehensive income in 2016-2017
378,149,885
(148,114,957)
230,034,928
35%
15%
(80,512,225)
(28,647,841)
(109,160,066)
(28,288,644)
(25,635,237)
17. Short term bank borrowings
Bank overdrafts
Dhaka Bank Limited (Limit Tk.
180,000,000)
The City Bank Limited
Mutual Trust Bank Limited
Short term bank loans
The City Bank Limited
Mutual Trust Bank Limited
Dhaka Bank Limited
Current portion of long term loan (Note 14)
30 June 2018
Taka
30 June
2017
Taka
161,151,048
11,432,288
-
-
31,302,860
77,461,281
161,151,048
120,196,429
2,507,475
18,839,012
456,230,854
477,577,341
115,170,190
753,898,579
47,922,189
383,335,866
101,871,380
533,129,435
152,648,725
805,974,589
Collateral and security given against short-term finance are a part of overall financing arrangement with Dhaka Bank Limited as
indicated in note 14. The interest rate is 9% -12.5% per annum and is payable on quarterly rests.
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 125
18. Trade payables
Trade payables
30 June 2018
Taka
54,488,508
54,488,508
30 June 2017
Taka
122,743,736
122,743,736
This represents amount due against purchase of raw, chemical and packing materials.
19. Liabilities for expenses
Promotional expenses, literature, etc.
Leave encashment
Audit fees
Legal and professional fees
Utilities
Local travelling
Accrued interest
Toll manufacturing cost
Accrued expenses
20. Other liabilities
Salary and allowances
Provident fund dues
Workers’ profit participation fund
Tax deducted at source
VAT deducted at source
Tax on salaries
Final settlement of staff
Corporate social responsibility project
Commission payable to ADL
Commission payable to BPL
Unpaid dividend
21. Revenue
Net sales revenue
Toll income
Quantitative details of sales
Locally manufactured products
63,918,269
3,348,532
638,750
324,570
4,820,000
6,000,000
5,043,306
-
16,766,587
100,860,014
945,243
2,056,929
-
1,513,724
746,136
1,247,964
2,279,150
1,305,270
4,074,641
18,584,888
222,312
32,976,257
82,427,795
3,564,414
300,000
725,000
3,918,416
6,000,000
8,214,048
2,945,564
26,659,791
134,755,028
229,689
2,736,376
5,888,601
2,114,205
904,151
4,315,032
5,177,294
8,828,783
7,269,376
-
211,257
37,674,764
30 June 2018
Taka
30 June 2017
Taka
1,300,442,853
19,433,003
1,319,875,856
1,789,773,306
17,459,681
1,807,232,987
Unit
Tabs
Caps
Amps & Suspensions
30 June 2018
Quantity
30 June 2017
Quantity
187,208,876
25,989,669
10,149,157
260,701,456
42,484,568
11,423,344
126 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
22. Cost of goods sold
Opening stock of finished goods
Cost of production (Note 22.1)
Cost of goods available for sale
Cost of physician sample
Closing stock of finished goods
22.1 Cost of production
Opening stock of semi-finished and WIP
Materials consumed (Note 22.2)
Conversion cost (Note 22.3)
Closing stock of semi-finished and WIP
22.2 Materials Consumed
Opening stock
Purchase
Closing stock
Item wise quantity and value of finished goods stock are as follows :
Stock as July 1, 2017
Tabs
Caps
Amps & Suspensions
Stock as June 30, 2018
Tabs
Caps
Amps & Suspensions
Unit
pcs.
pcs.
pcs.
Unit
pcs.
pcs.
pcs.
30 June 2018
Taka
30 June 2017
Taka
68,228,503
724,888,476
793,116,979
(7,096,892)
(119,998,485)
666,021,602
99,652,236
918,678,261
1,018,330,497
(8,294,986)
(68,228,503)
941,807,008
88,832,381
314,317,244
379,292,557
782,442,182
(57,553,706)
724,888,476
61,602,087
570,200,927
375,707,628
1,007,510,642
(88,832,381)
918,678,261
146,325,774
367,155,169
(199,163,699)
314,317,244
124,339,224
592,187,477
(146,325,774)
570,200,927
Quantity
Value (Tk.)
35,881,662
4,316,127
715,576
45,447,388
9,595,244
13,185,871
68,228,503
Quantity
Value (Tk.)
45,743,691
9,778,283
1,430,023
68,178,896
21,313,752
30,505,837
119,998,485
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 127
22.3 Conversion cost
Salaries and allowances
Contribution to provident fund
Power and fuel
Factory supplies
Software and hardware support expenses
Canteen expenses
Insurance
Repair and maintenance
Security services
Toll manufacturing charges
Stores materials consumed
Product development cost
Long service award
Overseas travelling expenses
Factory staff uniform
Printing and stationery
Entertainment
Vehicle repair, maintenance and running cost
Local authority taxes
Other expenses
Depreciation (Note 4.1)
23. General and administration expenses
Salaries and allowances
Directors’ fees (Note 28)
Contribution to provident fund
Office rent
Overseas travelling expenses
Local travelling expenses
Entertainment
Vehicle repair, maintenance and running cost
Postage, telephone and internet
Printing and stationery
Advertisement
Repairs and maintenance
Office supplies
Software and hardware support expenses
Utilities
Canteen expenses
Local authority taxes
Medical expenses
Insurance premium
Statutory audit fees
Legal and professional expenses
Meeting and seminars
Bank charges
General expenses
Depreciation (Note 4.1)
128 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
30 June 2018
Taka
134,687,674
1,958,417
36,669,889
16,552,550
1,215,860
6,808,872
2,999,015
18,354,691
2,655,011
16,507,781
29,361,448
18,115,904
216,130
3,163,453
1,549,716
950,276
338,593
2,468,713
2,220,120
1,659,906
80,838,538
379,292,557
73,890,013
390,000
2,377,913
9,735,900
2,411,044
977,100
391,656
2,868,339
1,583,087
590,564
234,000
898,909
1,814,488
2,794,163
1,830,471
2,514,497
1,476,192
1,494,167
718,178
325,000
1,281,370
1,550,160
863,299
981,882
6,735,673
30 June 2017
Taka
131,946,261
1,975,193
31,331,568
17,066,675
1,190,967
6,993,454
3,647,449
17,842,261
2,389,384
19,991,312
30,916,155
18,799,587
728,700
3,665,895
1,711,412
1,874,811
189,494
2,585,102
526,541
1,523,907
78,811,500
375,707,628
83,485,562
220,800
2,674,926
9,359,850
3,817,265
1,336,673
616,364
3,054,468
1,240,300
604,519
127,087
673,820
1,383,598
2,696,784
1,566,979
2,266,552
833,250
1,106,523
609,721
300,000
1,514,047
2,538,984
839,885
858,466
4,747,821
120,728,065
128,474,244
22.3 Conversion cost
24. Selling and distribution expenses
23. General and administration expenses
73,890,013
83,485,562
Vehicle repair, maintenance and running cost
Software and hardware support expenses
Salaries and allowances
Contribution to provident fund
Power and fuel
Factory supplies
Canteen expenses
Insurance
Repair and maintenance
Security services
Toll manufacturing charges
Stores materials consumed
Product development cost
Long service award
Overseas travelling expenses
Factory staff uniform
Printing and stationery
Entertainment
Local authority taxes
Other expenses
Depreciation (Note 4.1)
Salaries and allowances
Directors’ fees (Note 28)
Contribution to provident fund
Office rent
Overseas travelling expenses
Local travelling expenses
Entertainment
Printing and stationery
Advertisement
Repairs and maintenance
Office supplies
Utilities
Canteen expenses
Local authority taxes
Medical expenses
Insurance premium
Statutory audit fees
Legal and professional expenses
Meeting and seminars
Bank charges
General expenses
Depreciation (Note 4.1)
Vehicle repair, maintenance and running cost
Postage, telephone and internet
Software and hardware support expenses
30 June 2018
30 June 2017
Taka
Taka
134,687,674
131,946,261
1,958,417
36,669,889
16,552,550
1,215,860
6,808,872
2,999,015
18,354,691
2,655,011
16,507,781
29,361,448
18,115,904
216,130
3,163,453
1,549,716
950,276
338,593
2,468,713
2,220,120
1,659,906
80,838,538
379,292,557
390,000
2,377,913
9,735,900
2,411,044
977,100
391,656
2,868,339
1,583,087
590,564
234,000
898,909
1,814,488
2,794,163
1,830,471
2,514,497
1,476,192
1,494,167
718,178
325,000
1,281,370
1,550,160
863,299
981,882
6,735,673
1,975,193
31,331,568
17,066,675
1,190,967
6,993,454
3,647,449
17,842,261
2,389,384
19,991,312
30,916,155
18,799,587
728,700
3,665,895
1,711,412
1,874,811
189,494
2,585,102
526,541
1,523,907
78,811,500
375,707,628
220,800
2,674,926
9,359,850
3,817,265
1,336,673
616,364
3,054,468
1,240,300
604,519
127,087
673,820
1,383,598
2,696,784
1,566,979
2,266,552
833,250
1,106,523
609,721
300,000
1,514,047
2,538,984
839,885
858,466
4,747,821
120,728,065
128,474,244
Salaries and allowances
Contribution to provident fund
Overseas travelling expenses
Local travelling expenses
Entertainment
Samples
Promotional expenses
Literature, pad and handouts
Conference and workshop
Advertisement
Vehicle repair, maintenance and running cost
Postage, telephone and internet
Printing and stationery
Books and periodicals
Medical expenses
Training expenses
Prescription survey
Registration and renewals
Insurance premium
Office rent
Trade rebate
Meeting and seminars
Distribution commission
General expenses
Depreciation (Note 4.1)
25. Non-operating income/(expenses)
Gain/(loss) on disposal of property, plant and equipment
Sale of miscellaneous items
26. Interest expenses
Interest on
Long term loan
Short term finance
Finance lease
27. Capacity utilisation
Amps & Suspensions
Tablet
Capsule
30 June 2018
Taka
207,039,026
3,702,016
6,612,503
52,279,018
493,441
8,096,951
50,331,929
16,817,775
4,662,843
1,794,133
3,559,309
9,490,821
963,632
1,245,934
1,395,300
2,295,924
917,253
613,695
4,557,169
4,560,136
-
2,874,359
92,122,035
1,580,550
18,316,805
496,322,557
30 June 2017
Taka
216,405,540
3,828,922
10,354,213
51,698,120
686,834
9,503,513
51,652,496
15,344,812
7,214,537
1,915,790
2,281,251
8,887,014
1,895,553
1,690,080
1,476,056
3,164,806
3,571,330
772,201
5,551,325
1,825,391
3,260,944
7,097,673
97,809,332
1,327,177
15,140,240
524,355,150
(2,656,845)
113,465
(2,543,380)
1,203,869
136,958
1,340,827
32,695,455
55,468,898
4,617,874
92,782,227
40,292,694
45,012,437
4,971,665
90,276,796
Installed
capacity*
Unit
Actual
production
Unit
Actual
Utilisation
%
19,822,400
1,322,390,400
56,044,880
12,157,738
172,314,986
30,540,785
61%
13%
54%
Audited Financial Statements-Nuvista Pharma | Annual Report 2017-18 | 129
28. Remuneration and fees to directors
Remuneration (included in salaries and allowances)
Fees (Note 23)
29. Auditors’ remuneration
Statutory audit fees
Special audit fees
P.F. audit fees
WPPF audit fees
30 June 2018
Taka
35,628,152
390,000
36,018,152
30 June 2017
Taka
57,043,410
220,800
57,264,210
325,000
243,750
35,000
35,000
638,750
300,000
-
35,000
35,000
370,000
30. Related party disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of related party
Relationship
Beximco Pharmaceuticals Limited
Immediate and
ultimate parent
Nature
of transactions
Toll income
Value of
transaction
3,970,778
Distribution commission
18,584,888
Balance at year
end
2,313,836
18,584,888
31. Payments made in foreign currency:
Particulars
30 June 2018
Foreign currency
(Equivalent USD)
Taka
30 June 2017
Taka
Import of raw, chemicals and packing materials
Import of machinery and spare parts
2,660,212
162,138
223,457,810
13,619,571
237,077,381
287,182,664
45,756,747
332,939,411
32. Contingent liabilities
32.1 There is a contingent liability of Tk. 75,195,722 in respect of disputed tax claim. This matter has been referred to the High
Court for a ruling and is still pending.
32.2 There is additional contingent liabilities in respect of outstanding letters of credit of Tk. 20,778,877 (June 2017:
Tk.48,235,423).
33. Number of employees engaged
The number of employees engaged for the whole period or part thereof who received a total remuneration of Tk. 36,000 and
above were 954 (June 2017: 1061).
34. Events after reporting date
The Board in its meeting dated 22 October 2018 recommended that a dividend of 5% i.e. Tk. 0.50 per share, totalling Tk.
868,344 be paid for the year ended 30 June 2018 to all shareholders other than Beximco Pharmaceuticals Limited.
Chairman
Managing Director
Director
130 | Annual Report 2017-18 | Audited Financial Statements-Nuvista Pharma
Corporate Information
Operational Headquarters
19 Dhanmondi R/A, Road # 7
Dhaka- 1205, Bangladesh
Phone : +880-2-58611001
Fax : +880-2-58614601
E-mail : info@bpl.net
Website : www.beximcopharma.com
Corporate Headquarters
17 Dhanmondi R/A, Road # 2
Dhaka- 1205, Bangladesh
Phone : +880-2-58611891
Fax : +880-2-58613470
E-mail : beximchq@bol-online.com
Factory
Tongi Unit
126 Kathaldia, Tongi, Gazipur
Bangladesh
Kaliakoir Unit
Plot No. 1070/1083, Mouchak
Kaliakoir, Gazipur
Bangladesh
Stock Exchange Listing
Dhaka Stock Exchange Ltd.
Chittagong Stock Exchange Ltd.
AIM of London Stock Exchange plc (GDRs)
Public Relations
IMPACT PR
Apartment # A-1, House # 17,
Road # 4, Gulshan-1,
Dhaka-1212, Bangladesh
FTI Consulting LLP
200 Aldersgate
Aldersgate Street, London EC1A 4HD
United Kingdom
Legal Advisor
Rafique-ul Huq
Barrister-at-Law
47/1 Purana Paltan
Dhaka-1000, Bangladesh
Auditors
M. J. Abedin & Co.
Chartered Accountants
National Plaza (3rd Floor)
109, Bir Uttam C. R. Datta Road
Dhaka- 1205, Bangladesh
Banker
Janata Bank Ltd.
Local office
1 Dilkusha C/A
Dhaka- 1000, Bangladesh
For GDRs
Nominated Advisor
SPARK Advisory Partners Limited
5 St. John's Lane, EC1M 4BH,
London, UK
No.1 Aire Street, Leeds, LS1 4PR, UK
Broker
Northland Capital Partners Limited
40 Gracechurch Street, 2nd Floor
London, EC3V 0BT
Custodian
HSBC
Level 4, Shanta Western Tower
186 Bir Uttam Mir Shawkat Ali Road
Tejgaon Industrial Area
Dhaka- 1208, Bangladesh
Depository Bank
The Bank of New York Mellon
240 Greenwich Street, 22W
New York, NY 10286- USA
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industry recognizing the highly successful companies and individuals for
their important roles in improving healthcare around the world.
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