ANNUAL REPORT
2018-19
Winner
Global Generics
& Biosimilars
Awards 2019
ANNUAL REPORT
2018-19
BEXIMCO PHARMACEUTICALS LIMITED
We continually strive to provide access to safe, effective and
affordable medicines. Over the last 4 decades of operation, our
motto has remained the same: ensuring health and wellbeing of
the people.
Contents
About the Company
Corporate Information
Mission, Vision and Core Values
Journey Towards Excellence
Board and Management
- The Board of Directors
- Audit Committee
05
05
07
08
11
12
Highlights
Post Period Highlights
Accolades and Awards
Chairman’s Statement
Management Discussion and Analysis
Report of the Directors to the Shareholders
12
Report of the Audit Committee
- Nomination and Remuneration Committee
- Executive Committee
- Directors’ Profile
- Executive Committee
- Management Committee
Our Manufacturing Capabilities
Our Global Accreditations
What We Offer
Global Presence
12
12
13
16
17
18
25
27
28
Report of the Nomination and Remuneration Committee
Notes on Corporate Governance
Investor Relations
Value Added Statement
Financial Statements- Consolidated
Financial Statements- Beximco Pharma Stand-alone
104
Nuvista Pharma Limited
- Directors’ Report to the Shareholders
Financial Statements- Nuvista Pharma Limited
Research and Development
29
Financial Statements- Beximco Pharma API Limited
Our People
Environment, Health and Safety
What We Do for the Society
Corporate Events
30
34
37
40
Notice of Annual General Meeting
Annual General Meeting Information
Notes
Proxy Form and Attendance Slip
46
47
48
52
54
57
73
75
76
78
80
81
139
141
167
176
177
178
179
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 for 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 listed on the AIM of London
Stock Exchange. 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 4,500 employees including doctors, pharmacists, engineers, chemists, accountants,
business graduates and other white collar professionals.
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, Auchpara, Tongi,
Gazipur-1711, 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.
AB Bank Ltd.
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
SP Angel Corporate Finance LLP
Prince Frederick House
35-39 Maddox Street, London
W1S 2PP, United Kingdom
Custodian
HSBC
Level 4, Shanta Western Tower
186 Bir Uttam Mir Shawkat Ali Road
Tejgaon Industrial Area
Dhaka- 1208, Bangladesh
Depositary
The Bank of New York Mellon
240 Greenwich Street, 22W
New York, NY 10286- USA
About the Company and Corporate Information | Annual Report 2018-19 | 5
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.
Mission, Vision and Core Values | Annual Report 2018-19 | 7
1976
Company
incorporated
1980
Started manufacturing
products of Bayer AG,
Germany and Upjohn
Inc., USA, under
license agreements
1983
Launched own
formulation brands
1985
Listed on Dhaka
Stock Exchange
1993
2003
2005
Commencement of
export of formulation
products to Russia
Introduced anti-retroviral
(ARV) drugs as the first
Bangladeshi company
Got listed on the
Alternative Investment
Market (AIM) of London
Stock Exchange (LSE)
through issuance of GDRs
2006
Launched CFC free
HFA inhalers for
the first time in
Bangladesh
2008
GMP accreditation from
TGA, Australia and Gulf
Central Committee for
Drug Registration, for GCC
states as the first
Bangladeshi company
2013
Commenced export of
ophthalmic products
to Europe
2014
GMP accreditation
from Taiwan Food &
Drug Administration
(TFDA)
and Health Canada
Commenced export to
Australia and Romania
2015-16
2016-17
2017-18
2018-19
• GMP approval from the
Commenced export to the
Won the “Scrip
U.S. FDA as the first
Bangladeshi company
Launched generic
version of revolutionary
hepatitis C drugs
Sovaldi® and Harvoni®
Entered the Gulf
pharma market (Kuwait)
USA.
First overseas
collaboration with
BioCare Manufacturing
Sdn Bhd, Malaysia
Won the “Scrip Award”
in the category of
‘‘Community Partnership
of the Year’’
GMP approval from
facility received WHO
Malta Medicines Authority
Award” in the category
of “Best company in an
emerging market”
Oral solid dosage
prequalification
Acquired 85.22%
stake in Nuvista
Pharma Limited
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8 | Annual Report 2018-19 | Journey Towards Excellence
•
•
•
•
•
•
•
•
•
•
•
1976
Company
incorporated
1980
Started manufacturing
products of Bayer AG,
Germany and Upjohn
Inc., USA, under
license agreements
1983
Launched own
formulation brands
1985
Listed on Dhaka
Stock Exchange
1993
2003
2005
Commencement of
export of formulation
products to Russia
Introduced anti-retroviral
(ARV) drugs as the first
Bangladeshi company
Got listed on the
Alternative Investment
Market (AIM) of London
Stock Exchange (LSE)
through issuance of GDRs
2006
Launched CFC free
HFA inhalers for
the first time in
Bangladesh
2008
GMP accreditation from
TGA, Australia and Gulf
Central Committee for
Drug Registration, for GCC
states as the first
Bangladeshi company
2013
Commenced export of
ophthalmic products
to Europe
2014
GMP accreditation
from Taiwan Food &
Drug Administration
(TFDA)
and Health Canada
Commenced export to
Australia and Romania
2015-16
2016-17
2017-18
2018-19
GMP approval from the
U.S. FDA as the first
Bangladeshi company
Launched generic
version of revolutionary
hepatitis C drugs
Sovaldi® and Harvoni®
Entered the Gulf
pharma market (Kuwait)
Commenced export to the
USA.
First overseas
collaboration with
BioCare Manufacturing
Sdn Bhd, Malaysia
Won the “Scrip
Award” in the category
of “Best company in an
emerging market”
Oral solid dosage
facility received WHO
prequalification
Acquired 85.22%
stake in Nuvista
Pharma Limited
Won the “Scrip Award”
in the category of
‘‘Community Partnership
of the Year’’
GMP approval from
Malta Medicines Authority
Journey Towards Excellence | Annual Report 2018-19 | 9
•
•
•
•
•
•
•
•
•
•
•
•
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 MP
Vice Chairman
A S F Rahman
Chairman
The Board of Directors
A S F Rahman
Salman F Rahman MP
Nazmul Hassan MP
Osman Kaiser Chowdhury
Abu Bakar Siddiqur Rahman
Iqbal Ahmed
Dr. Abdur Rahman Khan
Shah Monjurul Hoque
Mohammad Asad Ullah, FCS
Chairman
Vice Chairman
Managing Director
Director
Director
Director
Independent Director
Independent Director
Company Secretary
Audit Committee
Dr. Abdur Rahman Khan
Shah Monjurul Hoque
Osman Kaiser Chowdhury
Mohammad Asad Ullah, FCS
Chairman
Member
Member
Company Secretary
Nomination and Remuneration Committee
Shah Monjurul Hoque
Iqbal Ahmed
Osman Kaiser Chowdhury
Mohammad Asad Ullah, FCS
Chairman
Member
Member
Company Secretary
Executive Committee
Osman Kaiser Chowdhury
Nazmul Hassan MP
Rabbur Reza
Mohammad Ali Nawaz
Afsar Uddin Ahmed
Member of the Board of Directors
Managing Director
Chief Operating Officer
Chief Financial Officer
Director, Commercial
12 | Annual Report 2018-19 | The Board of Directors
Directors’ Profile
Ahmed Sohail Fasihur Rahman
Chairman
Mr. Ahmed Sohail Fasihur Rahman is the Chairman and founder of Beximco Group. He is a distinguished
business personality of the country and has received many awards and accolades for his outstanding
contribution to country’s industrial development. Mr. Rahman was instrumental in introducing best-in-
class corporate practice in Bangladesh and is widely credited as the architect of Group’s successful
global strategy.
He graduated with Honours in Physics from the University of Dhaka in 1966, and also studied in
the United Kingdom. Mr. Rahman held key positions with many reputed organizations, serving as the
Chairman of IFIC Bank Limited, Director of Industrial Promotion & Development Company Limited, Arab
Bangladesh Bank Limited, Pubali Bank Limited and Investment Corporation of Bangladesh.
He is currently a member of the Board of Governors of North South University Foundation, the first
Private Sector University in Bangladesh.
Salman Fazlur Rahman MP
Vice Chairman
Mr. Salman Fazlur Rahman MP is an industrialist, philanthropist and politician of Bangladesh. A Member
of Parliament, Mr. Rahman currently serves as the Prime Minister’s Private Industry and Investment
Adviser, with the rank and status of a cabinet minister, principally tasked with promoting trade, business
and investment in the country.
He is best known as the co-founder and vice chairman of the Beximco Group, the country’s largest
private conglomerate, comprising of four publicly listed and seventeen privately held companies. He
anchored the key initiatives that have helped to build Beximco’s corporate identity at home and abroad,
and led the Group into becoming a leading industrial conglomerate in the country.
He was the President of SAARC Chamber of Commerce and Industry, Federation of Bangladesh
Chambers of Commerce and Industries (FBCCI), Metropolitan Chamber of Commerce and Industry
(MCCI), Bangladesh Textile Mills Association, Bangladesh Association of Pharmaceutical Industry and
Association of Television Channel Owners (ATCO).
Currently, he is the Chairman of the Board of Governors, Bangladesh Enterprise Institute, a leading
think tank focusing on the growth of private enterprise in Bangladesh. He is also the Chairman of IFIC
Bank Limited, Chairman of the Board of Editors, the Independent, one of the leading English-language
newspapers, Chairman of the Independent Television, a popular and influential 24-hour news channel
and the Chairman of Abahani Ltd. the nation’s premier sporting club and the Adviser of Bangladesh
Association of Pharmaceutical Industries (BAPI).
Mr. Rahman has many accolades to his name and he holds a degree from Karachi University.
The Board of Directors | Annual Report 2018-19 | 13
Nazmul Hassan MP
Managing Director
Mr. Nazmul Hassan MP is the Managing Director of Beximco Pharmaceuticals Ltd. and the Chairman
of Nuvista Pharma Ltd. He is also the Director of the Board of Bangladesh Antibiotic Industries Limited,
Independent Television and Padma Mining and Energy Limited.
Mr. Hassan obtained his graduation degree in Public Administration from the University of Dhaka and
an MBA degree in Marketing from Institute of Business Administration (IBA). He also received executive
education from University of California Los Angeles (UCLA) and Kellogg School of Management, Chicago.
Since 2009, Mr. Hassan has been an elected Member of Parliament (MP) of Bangladesh for three
consecutive terms. He is also a Member of the Parliamentary Committee for Finance, Sports & Defense.
Mr. Hassan is currently the President of Bangladesh Association of Pharmaceutical Industries (BAPI).
He is involved with various national and international committees and task force on healthcare and
drug policy.
Mr. Hassan is the elected President of Bangladesh Cricket Board (BCB) and Asian Cricket Council (ACC),
Director of International Cricket Council (ICC) Board and ICC Business Corporation (IBC). He is the
President of IBA Alumni Association and a Member of the American Management Association and the
Australian Institute of Management.
A prominent and highly respected business leader in the country, Mr. Hassan received the prestigious
Asia’s Most Influential Leader award at the Asian Brand Summit 2013, Dubai for his outstanding
business leadership.
Osman Kaiser Chowdhury
Director
Mr. Osman Kaiser Chowdhury is a member of the Institute of Chartered Accountants of England and
Wales and a Fellow member of the Institute of Chartered Accountants of Bangladesh. He is involved
with Beximco Group for over 39 years and is currently the Director of Group Finance and Corporate
Affairs, Chief Executive Officer of Beximco Power Ltd. and Beximco Engineering Ltd. He has over 13
years’ experience working abroad, including the United Kingdom.
Mr. Chowdhury is a member of the Board of Directors of a number of listed and non-listed Companies
including Bangladesh Export Import Company Ltd., Beximco Synthetics Ltd., Shinepukur Ceramics Ltd
and Beximco Securities Ltd.
Abu Bakar Siddiqur Rahman
Director
Mr. Abu Bakar Siddiqur Rahman holds senior positions at a number of entities within the Beximco Group
of companies and has over 47 years business experiences in trading, jute, textiles, pharmaceuticals
and other sectors. He has been in the Board of Beximco Pharma since 1993. Mr. Rahman is also a
member of the Board of Directors of Bangladesh Export Import Company Limited.
14 | Annual Report 2018-19 | The Board of Directors
Iqbal Ahmed
Director
Mr.Iqbal Ahmed has been with the Beximco Group since 1972 and holds senior positions in a number
of entities within the Beximco Group of companies. He received his Bachelor’s Degree in Science from
the University of Dhaka in 1966. He has over 47 years business experiences in trading, jute, textile,
pharmaceuticals, engineering, IT and other sectors. He has been in the board of Beximco Pharma since
1985. He was the publisher of “The Independent” and the “Muktakantha”an English and a Bengali
national daily newspaper respectively, in Bangladesh.
Dr. Abdur Rahman Khan
Independent Director
Dr. Abdur Rahman Khan is a very senior and prominent physician in Bangladesh. He was the Chief
Consultant Physician and Professor of Medicine, BIRDEM (Bangladesh Institute of Research and
Rehabilitation in Diabetes, Endocrine and Metabolic Disorders) and Chairman, Board of Management
of BIRDEM. Mr. Khan is a fellow of the Royal College of Physicians of London and College of Physicians
and Surgeons of Bangladesh. He is a Member of National Council of Diabetic Association of Bangladesh,
Member of the International Diabetes Federation and an honorary member of the Association of
Military Surgeons, USA. He joined Bangladesh Army as a Commissioned Officer in Army Medical Corps
and retired as a Major General. He was an Advisor to the Caretaker Government of Bangladesh and
previously Vice President of the Red Crescent and Red Cross society of Bangladesh.
Shah Monjurul Hoque
Independent Director
Mr. Shah Monjurul Hoque is a practicing lawyer in the Supreme Court of Bangladesh, both in the High
Court Division and Appellate Division. Mr. Hoque is the founder of Hoque & Associates, a law firm in
Bangladesh, of which he is the Proprietor (a position equivalent to that of a director). He has held
various academic appointments in the field of law and has also acted as legal adviser to a number of
corporate clients in Bangladesh and as the enlisted lawyer of several Bangladeshi banks.
Company Secretary
Mohammad Asad Ullah
Executive Director & Company Secretary
Mr. Mohammad Asad Ullah has been working with Beximco Group since 1983. He obtained his Bachelor
of Arts and Master of Law degree from Dhaka University. He also holds an MBA with major in Human
Resource Management.
Mr. Asad Ullah qualified as Chartered Secretary from the Institute of Chartered Secretaries of
Bangladesh (ICSB) and is a Fellow Member of the institute. He was four times President of the Institute.
He is a widely experienced person with long career in Company Secretarial functions.
The Board of Directors | Annual Report 2018-19 | 15
Executive Committee
Executive Committee comprises of five members- Mr. Osman Kaiser Chowdhury, Mr. Nazmul Hassan MP, Mr. Rabbur Reza, Mr.
Mohammad Ali Nawaz and Mr. Afsar Uddin Ahmed. Mr. Chowdhury and Mr. Hassan are also members of the Board of Directors.
Rabbur Reza
Chief Operating Officer
Mr. Rabbur Reza, the Chief Operating Officer of the Company, has 24 years of experience in pharmaceutical
industry, in the areas of sales, marketing and brand management, international business development,
operations management, acquisition and partnerships etc. He had previously worked for Biotech and
Milton Pharmaceuticals in Australia. He is also serving as the Managing Director of Nuvista Pharma, a
subsidiary of Beximco Pharma, since its acquisition.
Mr. Reza holds a Bachelor of Pharmacy from Panjab University, India and an MBA from Queensland
University of Technology (QUT), Australia. He received executive education in Strategy and Leadership
at Harvard Business School, USA and London Business School, UK.
He is a fellow of Australian Institute of Management, a member of Pharmaceutical Society of Australia,
and also a member of Montreal Protocol’s Medical Technical Options Committee (United Nations
Environment Program–UNEP). Mr. Reza received the prestigious “Australian Alumni Excellence Awards
2014” in the category of Business and Leadership.
Mohammad Ali Nawaz
Chief Financial Officer
Mr. Mohammad Ali Nawaz qualified as a CMA from the institute of Cost and Management Accountants
of Bangladesh, and is currently a Fellow Member of the Institute. He also obtained an MBA from the
Institute of Business Administration, University of Dhaka.
After joining as a management trainee in 1990, he worked for different entities within the Beximco
group of companies, in varying capacities. He possesses diversified skills and experience in Accounting,
Finance, HRM, Project Management, Supply Chain and Operations Management. He attended a number
of training courses, seminars and symposiums at home and abroad in various functional areas including
organizational leadership.
Afsar Uddin Ahmed
Director Commercial
Mr. Afsar Uddin Ahmed completed his MBA from the Institute of Business Administration (IBA), University
of Dhaka, with a major in Marketing. He also received advanced management training at International
Management Centre, IIkley College, UK.
Mr. Ahmed has worked in and supervised a number of operational areas of BPL including Marketing,
Sales, Distribution, Exports, Planning, Procurement, MIS, Business Development, Project Management
and API business. Mr. Ahmed also worked as the Country Manager of BPL’s Pakistan operation.
He worked for Sanofi-Aventis as Director Marketing of its Bangladesh business overseeing the
marketing operations of several business units.
16 | Annual Report 2018-19 | The Board of Directors
Management Committee
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Rabbur Reza
Chief Operating Officer
Mohammad 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
Head of Distribution Services &
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
Dr. Selina Akter
Executive Director
Department of Medical Affairs
M A Arshad Bhuiyan
Deputy General Manager, HR
The Board of Directors | Annual Report 2018-19 | 17
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, insulin, dry powder inhaler, small scale API unit, etc. The
site has its own infrastructure to ensure adequate generation and distribution of electricity with an installed capacity of 15 MW.
It also contains water purification, effluent treatment, liquid nitrogen and steam generation plant/facilities. There is 125,000
sq ft 5-tier warehouse to accommodate materials and finished products maintaining the GMP compliance. In this year our
oral solid dosage facility was approved by the Malta Medicines Authority (European Union). These facilities incorporate modern
technological advancements with automated material handling systems and multilevel designs. Machineries and equipments
are predominantly of European origin and are capable of manufacturing high tech complex products like bilayer, effervescent,
oral thin films, etc. meeting the standard of highly regulated market.
The company is now implementing a massive expansion project to build facilities for manufacturing solid, semi solid, liquid,
cream and ointments to diversify product portfolio and expand production capacity. A purpose built five storied building with
total floor space about 600,000 sq ft has been constructed to accommodate the production facilities. The project will have the
capacity to produce 5 billion tablet, capsules, sachets etc., 130 million bottles and 70 million tubes for semi-solid products.
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.
18 | Annual Report 2018-19 | Our Manufacturing Capabilities
Expansion Project
Our Manufacturing Capabilities | Annual Report 2018-19 | 19
Oral Solid Dosage Facility
20 | Annual Report 2018-19 | Our Manufacturing Capabilities
Inhaler Facility
Our Manufacturing Capabilities | Annual Report 2018-19 | 21
Ophthalmics Facility
22 | Annual Report 2018-19 | Our Manufacturing Capabilities
Insulin Facility
Our Manufacturing Capabilities | Annual Report 2018-19 | 23
API Facility
24 | Annual Report 2018-19 | Our Manufacturing Capabilities
Our Global Accreditations
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
• Malta Medicines Authority (European Union)
• Health Canada
• GCC (Gulf)
• WHO (World Health Organization).
Our Global Accreditations | Annual Report 2018-19 | 25
First Bangladeshi pharma
company to export medicine to U.S.A
2017-18 Highlights | Annual Report 2017-18 | 26
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, Atova, Azmasol,
Bizoran, 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.
What We Offer | Annual Report 2018-19 | 27
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 7 products in the US market. This year Beximco Pharma acquired a portfolio of eight Abbreviated New
Drug Applicatons (ANDAs) from Sandoz inc., a division of Novartis. In the year Company saw registration of 50 products in 23
countries. Currently Beximco exports 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.
North AMERICA
CIS Central ASIA
EUROPE
Central AMERICA
& Caribbean ISLANDS
South AMERICA
Middle EAST
ASIA
ASIA
ASIA
AFRICA
AUSTRALIA
New ZEALAND
28 | Annual Report 2018-19 | Global Presence
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 on creating 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.
North AMERICA
CIS Central ASIA
EUROPE
Central AMERICA
& Caribbean ISLANDS
South AMERICA
Middle EAST
ASIA
ASIA
ASIA
AFRICA
AUSTRALIA
New ZEALAND
Research and Development | Annual Report 2018-19 | 29
Our People
We always recognize that people are the cornerstone of our success. Our dedicated and highly capable employees, with their
collective resolve to excel, have always led us to achieve new milestones. Beximco Pharma currently employs more than 4,500
people. Its strong pool of talents includes professionals like pharmacists, chemists, doctors, microbiologists, engineers and
business executives. We seek to provide a safe and secured workplace that inspires people to be the best they can be. We
believe our ability to transform ourselves is largely driven through empowering our people and thus we strive to provide each
and every of our employees with an environment that instills pride, fosters growth and encourages innovation.
608 Man Hour
Overseas Training
2,017 Man Hour
Local Training (In-house)
3,428 Man Hour
Local Training (External)
Training and Development
We constantly seek to attract and retain the best talent in the
industry and take initiatives to ensure that our people are enabled
and inspired to grow individually and professionally along with
the Company. Beximco Pharma regularly carries out wide range
of training and professional development programs across
different functions of the organizations. In the last financial
year, we conducted more than 6,000 man-hours of training for
our employees in addition to routine training on in-plant GMP
Compliance and Selling skills for our field colleagues.
30 | Annual Report 2018-19 | Our People
Gender Diversity
We pursue equal opportunity policy for all of our employees
working throughout the organization. The Company’s
employment and recruitment policy does not contain
any discriminative provision with respect gender, religion
or caste, rather where male and female are found to be
equally qualified, female candidate gets the preference.
Employment of female workers in the industry is low
due to country’s socio-economic and cultural factors.
Beximco Pharma has already started a packaging line in
the production plant run exclusively by female workers. We
have a number of female employees who are working in
managerial positions and leadership roles, three of them
promoted in the year under review. The number of female in
our 16 member Management Committee has risen to three
from previous two. Female employment in the Company is
gradually rising.
Employee Retention
The Company has an effective employee retention program
which includes employee compensation, recognition and
reward system, work-life balance, communication and
feedback, effective teamwork etc. The Company also has
the best practices in developing workplace culture for its
employees.
Female Employee
150
130
111
179
2016
2017
2018
2019
Employee Turnover
2
2
2
8
88
8
88
2
2
2
9
99
8
8
8
6
6
6
7
0
4
9
2
3
9
99
2
2
2
7
7
7
0
0
4
1
9
3
Net Turnover
4
44
7
7
7
7
7
7
Joining
3
8
3
Leaving
2016
2017
2018
Our People | Annual Report 2018-19 | 31
Employee Welfare
In addition to providing compensation packages competitive to the industry, Beximco Pharma takes on a good number of
voluntary initiatives for overall employee welfare. The Company arranges annual picnic, employee family day program, cultural
program etc., to strengthen inter-personal bonding. Various inter and intra-company sports events are also organized for physical
and mental fitness. Employees at our manufacturing plants and head offices are provided meals almost at no cost. The Company
provides education stipends to the meritorious children of our workers; routine health checkup, free of cost doctor’s consultation
for self and family members and need based special financial support for medical purposes are also available for them.
Annual Iftar 2019
Family Day 2019
Annual Cultural Program
Inter-Dept. Volleyball Tournament
Annual Picnic, Factory
Inter- Department Cricket Tournament
32 | Annual Report 2018-19 | Our People
New Knowledge Center being constructed at BPL site, Tongi
Environment, Health and Safety
We are well aware of our responsibilities to protect our
environment and to promote a sustainable eco-friendly
operations. We consciously select technology that is friendly
to the environment and comply with the environmental codes.
Our production process is designed with plant having modern
state of art technology. We have created adequate facilities
and employed appropriate process to keep the environmental
effects of the manufacturing activities to a practicable
minimum level.
We are also committed to provide a safe and healthy working
environment to ensure health and safety of our employees,
contractors, visitors and neighbors who may be affected by
our operations.
We identify and control all foreseeable hazards to life,
property or environment. We ensure that gaseous emission
and liquid or solid wastes from our operations are minimized,
controlled and disposed of by the best practicable means. As a
commitment to protect the health and environment, Beximco
Pharma has already implemented proper Occupational Health
and Industrial Hygiene and Effluent Management System in its
manufacturing site.
Management of Solid Wastes
The solid wastes generated from pharmaceutical operation
may have degrading effect on the environment and ecological
system. Our solid wastes are managed adequately to
comply with the environmental regulations. The entire waste
management is handled with the Best Available Technologies
(BAT) that include incineration plant, dust control units
and scrubber to ensure zero discharge of solid waste that
may harm the surrounding ecological system. Beximco has
installed one of the largest incinerators having capacity 250kg/
hr. depending on calorific value of the products. Materials are
burned in the primary chamber at 8000 C. Gaseous emissions
evolved from the chemicals are burned in the secondary
chamber at 12000 to 14000 C. Retention time in the second
chamber is 2 seconds. Different parameters of the gas finally
generated from the incinerator are well within acceptable
limit. As per international guideline, the height of the chimney
is more than 30 meter.
Management of Liquid Wastes and Gaseous
Emissions
The liquid wastes are produced from the operation of factory.
A considerable amount of waste water is generated in factory
premises, which are mainly from washing of machineries and
utensils, floors empty bottles etc., The other source of liquid
waste consists of dissolved and suspended API, excipients,
laboratory re-agents; water from cooling tower.
Beximco Pharma has proper control on the waste generated
from the plant. We have the largest waste water treatment
plant at our factory. No toxic wastes water are discharged
into the open land or surface water bodies without treatment.
About 50% of this water is recycled and used for gardening,
car washing and water scrubber of incinerator. Settled sludge
is incinerated. The Chemical Oxygen Demand (COD) and
Biological Oxygen Demand (BOD) of the released water are
well within the national limit. The quality of treated water
complies with the requirements of DoE.
All equipment are provided with efficient filters in the exhaust
to confine dust particles and controlled by Building Automation
System (BAS). Also certain areas contain High Efficiency
Particulate Aid Filter (HEPA) and proper scrubber for further
protection of the environment. The collected dust particles
from filters are then incinerated. Gaseous products such as
SO2, NO2, NO etc. in the surrounding areas are monitored and
kept within normal level.
Management of Noise, Odor and Vibration
Noise and certain vibrations commonly produced by the
electromechanical equipment may affect workers and the
environment at the vicinity.
The noise requires no mitigation step as the factory is located
in a non-residential/commercial area falling under ‘Ga’ area
(mixed) as per standard. The machineries are low noise type
and hence has very insignificant effect. The working personnel
inside the plant are provided with Personal Protective
Equipment (PPE). Vibration problems are mitigated as the
reactors are located at a proper distance from the boundary
level. There is no major odor problem as the factory premises
34 | Annual Report 2018-19 | Environment, Health and Safety
are regularly disinfected and scrubbers are installed in the
main header of gas emission line.
Occupational Health and Safety
Measurements and Industrial Hygiene
Beximco Pharma is determined to the protection and
promotion of employee health and safety. We identify and
assess potential exposure to chemical and physical stresses
utilizing qualitative and quantitative analysis. Significant risks
to chemical and physical stresses are controlled by isolation,
engineering control, administrative control and providing
protective equipment. EHS aspects are considered before
procurement of any equipment. EHS attribute is a part of User
Specification Requirement (URS) of all equipment. All machine
and moving parts are covered and interlocked through sensors
to protect employees from physical injury. Eating, smoking
or drinking is not permitted in the manufacturing areas and
analytical labs where chemical exposures are possible.
Appropriate work uniforms and lab coats are provided where
required.
We have identified noisy area and provided proper ear
protection to the workers working in that area. Proper
eye protection is provided to the employees working with
chemicals. We also identify, assess and control the factors that
may lead to musculoskeletal or other ergonomically related
disorders. Automation in most of the areas reduce work stress.
Employees are trained on different EHS issues including
firefighting, personnel protective equipment, First Aid, material
safety data sheet (MSDS).
No hot area is present in the factory premise. All working areas
including warehouse are temperature controlled. All areas are
provided with emergency exit with proper signage. Where ever
applicable, flame proof appliances, fire door etc. are used.
Partitions are made with PU panel capable to retain fire for a
significant time period.
All employees undergo pre-employment and annual health
check-up organized by the company. Company has contracted
physicians specialised in Medicine, Gynecology, Child health
etc. These physicians carries out their practices at Tongi area,
close to the factory locations. Employees can consult with
them free of cost twice in a week.
The Company has a sick bay. Employees can take advice
from the qualified physicians engaged by the company.
Company has also contracted with nearest clinic for handling
of emergencies. The Company owns ambulances to send
patients to the hospitals and clinics in emergency cases. We
provided first aid box to each department of our facility with
necessary items.
Company conducts mock evacuation drill twice in a year in
order to prepare the employees to act properly during any
emergency raise. Total area is covered by fire hydrant pump.
Standalone fire extinguishers are provided in all areas as per
government regulation.
Company has its EHS committee comprising of high level
management employees. They meet once in every two months
to evaluate overall EHS situation and resolve identified issues.
BPL conducts EHS audit once in a year. The Company also
has a policy on “Environment Health and Safety” which is
mandatory for all.
Child Labour
The Company strictly complies with the codes of Bangladesh
Labor Act in all respects including restrictive provisions relating
to “Employment of Adolescent”. No Child labor is directly or
indirectly employed in any part of the Company.
Success Stories
Beximco Pharma is committed to inspire, enable, and invest
in opportunities that help preserve environment. It’s a matter
of great pride that, we were among the first few in the world
who proactively converted all the CFC based inhalers to ozone
benign HFA formulations.
Beximco Pharma
received “Occupational Safety and
Health (OSH) Good Practice Award 2018” at the National
Occupational Safety and Health day celebration on April
28, 2019. We have ISO 14001 (Environment Management
System) certification and OHSAS 18001 (Occupational Health
and Safety Management) certification for our high standard of
compliance.
We seek to comply with the relevant environmental laws and
regulations applicable in the country. We work with regulatory
agencies in the implementation of an effective environmental
policy totally in compliance with government regulations. As
such all our manufacturing facilities have got the relevant
certifications from the Department of Environment.
We provide support to various government and non-
governmental organizations that work for environment.
Beximco Pharma was one of the sponsors of “National Tree
Plantation Campaign and Fair 2019”.
Environment, Health and Safety | Annual Report 2018-19 | 35
At Beximco Pharma, we strive to do what matters most to the
patients: providing high quality, contemporary treatment options
and make them affordable.
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 CSR activities and in 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 2018-19 were:
Community Care Program
Promoting Education
Education for Underprivileged Children and
Students
Beximco Pharma and DSM Nutritional Products, Switzerland
have joined forces through a partnership with the Center for
Human Nutrition and the Sight & Life Global Nutrition Research
Institute at the Johns Hopkins University Bloomberg School of
Public Health and the JiVitA Maternal and Child Research Institute
of the Johns Hopkins University-Bangladesh, Gaibandha with
the goal to support community nutrition and health research
intended to test, discover, inform and guide policies that can
lift the health burden of micronutrient deficiencies among
women, infants and children in impoverished regions of rural
Bangladesh and South Asia. Driven by shared values in public
health and a commitment to contribute resources that can
promote equity, both companies work hand-in-hand with each
other and with the Johns Hopkins team to manufacture, bottle,
test and deliver tens of millions of micronutrient supplements
for the JiVitA Research Institute.
the Scrip Award
for
Beximco Pharma was awarded
“Community Partnership of the Year” at the 14th Annual Scrip
Awards ceremony held in London on 28 November 2018 for
its decade long work with DSM and Johns Hopkins University
to improve nutrition in rural Bangladesh. Other nominees
in this category were AstraZeneca, IQVIA India, and Oxford
PharmaGenesis.
Beximco Pharma has been sponsoring 3 Computer Literacy
Centers (CLCs) in partnership with Computer Literacy Program
(CLP), USA and its implementation partner in Bangladesh-
Dnet. The main objective is to the promote computer learning
and
the underprivileged
students of Bangladesh. Beximco currently sponsors 3 CLCs
in two different districts.
technology among
information
Computer Literacy Program (CLP) is the pioneer, an award
winning non-formal model, and under this initiative, students
in rural schools receive hands-on computer literacy training
free of charge. Since 2004, Dnet has established 263 CLC
centers in 55 districts and trained over 700 teachers (16%
female) to transform students in digital literate. Through
this program more than 100,000 students (49% female)
successfully completed basic course on computer literacy.
Beximco’s partnership with Dnet and CLP will help create
computer learning opportunities for underprivileged students
in rural areas and villages.
What We Do for the Society | Annual Report 2018-19 | 37
Eradicating Hunger, Poverty and Malnutrition
Support to Spreeha Bangladesh Foundation
Supporting Preventive Healthcare
Nationwide Vitamin D Screening
Beximco Pharma extended support to Spreeha Bangladesh
Foundation through donation of medicines. Mr. Rabbur
Reza, Chief Operating Officer, Beximco Pharma handed over
the medicines, as a part of its CSR initiatives, to Mr. Tazin
Shadid, Founder and CEO of Spreeha Bangladesh. Spreeha
Bangladesh Foundation
is a Bangladesh based social
enterprise working closely with underprivileged communities
since 2008 and provides services under the categories of
healthcare, education, skills training and outreach programs.
Support to Shuchona Foundation
Beximco Pharma has conducted 3 Vitamin D Screening
programs in Bogra, Khulna and Rangpur. More than 1000
doctors from different parts of the country participated in
these programs.
AO Trauma Workshop
Beximco Pharma was the scientific partner of AO Trauma
workshop held during September 14-16 and October 26-28.
Encouraging Environment Sustainability
National Tree Plantation Campaign and Fair
Beximco Pharma continued to provide support to Shuchona
Foundation which is a not-for-profit advocacy, research
and capacity-building organization specializing in Neuro-
Developmental Disorders (NDDs) and mental health.
Beximco Pharma was one of the sponsors of "National Tree
Plantation Campaign and Fair 2019" held on June 20, 2019 at
Bangabandhu International Conference Centre (BICC).
38 | Annual Report 2018-19 | What We Do for the Society
Inspiring Leadership and skill development
National Youth Assembly 2019
Beximco Pharma was a sponsor of the National Youth Assembly 2019, the largest youth assembly in the country, held during
March 9-12, 2019 in Cox’s Bazar. The mega event was attended by over 35,000 volunteers and youth icons from all parts of
the country while corporate leaders, policy makers, MPs, entrepreneurs, and renowned personalities from the country spoke
on youth leadership during the summit.
6th Laboratorians National Science Festival 2019
Beximco Pharma was one of the key sponsors of "6th
Laboratorians National Science Festival 2019" which offers a
big platform for students to come up with innovative ideas. The
festival was organized by Science Club of the laboratorians
(S.C.L) of Government Laboratory High School, Dhaka during
March 14-16, 2019.
Art Exhibition of Female Artists
8th Kibria International Print Fair 2019
Promoting Art and Culture
Beximco Pharma was a sponsor of 'Colours', an art exhibition
of 8 emerging female artists of the country. Pre-eminent artist
Monirul Islam and Professor Abul Barq Alvi were present at the
opening of the exhibition on March 08, 2019.
Beximco Pharma extended support to promote and celebrate
Bangladeshi arts and culture. BPL was the proud sponsor of
8th Kibria International Print Fair 2019, held during February
15-17, 2019 at Zainul Gallery, Faculty of Fine Arts, DU.
Eminent and young printmakers from various institutes and
organisations exhibited their works at the event.
What We Do for the Society | Annual Report 2018-19 | 39
Corporate Events
Beximco Pharma Launches Human Insulin (Gensulin®) and GensuPen
On May 03, 2019 Beximco Pharmaceuticals Ltd. achieved another milestone by launching clinically proven high quality
European Insulin "Gensulin" and Automated Ergonomic Insulin Injecting device "GensuPen2"
40 | Annual Report 2018-19 | Corporate Events
Beximco Pharma Launches Human Insulin (Gensulin®) and GensuPen
Corporate Events | Annual Report 2018-19 | 41
Forecast Meeting 2019-20 in Kolkata, India
Annual Sales & Marketing Conference 2018-19 at Cox’s Bazar
Annual Finance Conference at Cox’s Bazar
42 | Annual Report 2018-19 | Corporate Events
Beximco Pharma Stall at CPhI Worldwide 2019, Frankfurt, Germany
Plant Visits
Delegates from Turkey
Senior Military Delegations from Zimbabwe National Defense University
Corporate Events | Annual Report 2018-19 | 43
Visit by Ambassador of Uzbekistan
Visitors from Bangladesh Armed Forces Division
Visitors from Bangladesh Air Force
Visits by Students from Brac University
44 | Annual Report 2018-19 | Corporate Events
2018-19
Highlights
46 | Annual Report 2018-19 | Highlights
• Launched a total of 20 new products, including
- Recombinant human insulin (Gensulin), together with the insulin pen
(Gensupen), in collaboration with Polish biotech company, Bioton S.A.
- Four products from subsidiary, Nuvista Pharma, in the domestic market
• Completed 77 registrations for 50 products in 23 countries
•
Acquired eight ANDAs from Sandoz Inc. for the US market
Received US Food and Drug Administration (FDA) approval for two
•
cardiovascular drugs (Nadolol and Sotalol AF) and an anti-allergy drug
(Cyproheptadine)
• Launched Metformin Hydrochloride (500mg and 750mg), an anti-diabetic,
extended release drug in the US market
• Successfully completed EU GMP audits by German and Malta Regulatory
authorities
• Commenced export to the UAE
• Received WHO Prequalification for Lamivudine 300 mg tablet, an antiviral product
• Received approval from the National Board of Revenue, Bangladesh as
Authorised Economic Operator (AEO), a privilege given to selected companies
for fast custom clearance in import and export
• Won the Scrip Award for "Community Partnership of the Year", which recognises
pharma and biotech companies for the way in which they contribute to the wider
community
• Launched a total of 20 new products, including
- Recombinant human insulin (Gensulin), together with the insulin pen
(Gensupen), in collaboration with Polish biotech company, Bioton S.A.
- Four products from subsidiary, Nuvista Pharma, in the domestic market
• Completed 77 registrations for 50 products in 23 countries
Acquired eight ANDAs from Sandoz Inc. for the US market
Received US Food and Drug Administration (FDA) approval for two
cardiovascular drugs (Nadolol and Sotalol AF) and an anti-allergy drug
•
•
(Cyproheptadine)
• Launched Metformin Hydrochloride (500mg and 750mg), an anti-diabetic,
extended release drug in the US market
• Successfully completed EU GMP audits by German and Malta Regulatory
authorities
• Commenced export to the UAE
• Received WHO Prequalification for Lamivudine 300 mg tablet, an antiviral product
• Received approval from the National Board of Revenue, Bangladesh as
Authorised Economic Operator (AEO), a privilege given to selected companies
for fast custom clearance in import and export
• Won the Scrip Award for "Community Partnership of the Year", which recognises
pharma and biotech companies for the way in which they contribute to the wider
community
Post Period
Highlights
• Launched Maxhaler mDPI for the first time in Bangladesh, which is the generic
version of GSK's Seretide Accuhaler
• Launched fifth product, Nadolol, a cardiovascular drug, in the US market
• Won Bangladesh's "National productivity and quality excellence award 2018", a
recognition of outstanding contribution in increasing productivity and excellence in
product quality
• Received "Global Generics & Biosimilars Awards 2019" in the category of Company
of the Year, Asia Pacific, which recognises the efforts made by global generics and
biosimilars sectors, to make affordable medicines available to more patients across
the globe
Post Period Highlights | Annual Report 2018-19 | 47
Accolades and Awards
Scrip Awards for “Community Partnership of the Year”
Scrip Awards for “Community Partnership of the Year”
Scrip Awards for “Community Partnership of the Year”
Scrip Awards for “Community Partnership of the Year”
Beximco Pharma has won the Scrip Award for “Community Partnership of the Year” at the 14th Annual Scrip Awards
ceremony held in London on 28 November 2018. The Community Partnership of the Year award is designed to acknowledge
the numerous ways in which pharma and biotech companies give back to the wider community. Beximco Pharma was
awarded for its decade long work with DSM and Johns Hopkins University to improve nutrition in rural Bangladesh. Other
nominees in this category were AstraZeneca, IQVIA India, and Oxford Pharma Genesis.
48 | Annual Report 2018-19 | Accolades and Awards
Accolades and Awards | Annual Report 2017-18 | 48
Global Generics & Biosimilars Awards 2019
Company of the Year, Asia Pacific
Beximco Pharma has been recognized as the Company of the Year, Asia Pacific at the Global Generics & Biosimilars Awards
2019, held in Frankfurt, Germany, on 5 November 2019. The Company has won the award in this category after competing with
global peers namely Aurobindo, MSN Laboratories, Piramal Pharma Solutions and Shanghai Henlius Biotech. Beximco Pharma
COO, Mr. Rabbur Reza received the award on behalf of the Company.
The Global Generics & Biosimilars Awards are amongst the most coveted recognitions in the pharmaceutical industry, that
recognize the efforts made by global generics and biosimilar companies, to make affordable medicines available to more
patients across the globe.
Accolades and Awards | Annual Report 2018-19 | 49
National Productivity and
Quality Excellence Award-2018
Beximco Pharmaceuticals Limited was awarded National Productivity and
Quality Excellence Award-2018 by the Ministry of Industries in recognition of
outstanding contribution in increasing productivity and excellence in product
quality.
Beximco Pharma secured first position under the category of Large Industry
(Chemical). Industries Minister Nurul Majid Mahmud Humayun handed over the
award in a ceremony held in Dhaka.
Bangladesh Business
Innovation Award 2019
Bangladesh Business Innovation Award 2019, an initiative of Bangladesh Brand
Forum to promote and acknowledge innovation in the country, has recognized
19 best innovations out of 250 entries in a grand award gala on the 12th of
October, 2019. Beximco Pharma was awarded in the category of Best Innovation
in Healthcare for its pioneering role in introducing multidose dry powder inhaler,
Maxhaler, in Bangladesh.
National Occupational Health & Safety award 2018
Beximco Pharma won the “Health and Safety Award 2018” at the National Occupational Health & Safety Day celebration held on
April 28, 2019. Mr. Shamim Momtaz, Director, Manufacturing (T-2) received the award on behalf of the company.
50 | Annual Report 2018-19 | Accolades and Awards
Chairman’s Statement
A S F Rahman
Chairman
Dear Shareholders,
Beximco Pharma concluded another year of excellent
performance. We continued our growth momentum, meeting
sales and profit targets and achieving remarkable success in
consistent pursuit of our strategic objectives. We expanded our
domestic market at a pace ahead of the industry, accelerated
growth in our export business, consolidated overseas markets,
enriched and diversified our product portfolio, enhanced our
manufacturing capabilities and made significant progress with
our R&D initiatives.
As testament to this success, we received a number of
awards from national and international organizations for
our achievement in diversified fields including innovation,
productivity and community services. We became Company of
the Year, Asia Pacific, winning Global Generics and Biosimilar
Award 2019. All these acknowledgements demonstrate
our commitment to achieving excellence in the complete
continuum of our business operations.
52 | Annual Report 2018-19 | Chairman’s Statement
In April 2018, we completed a milestone event through the
acquisition of Nuvista Pharma to supplement our organic
growth in the domestic market. During the year, we
successfully completed the integration of Nuvista to fully realize
synergies, restructured its business and operating models to
make them aligned to Beximco Pharma’s winning strategies,
introduced standardized operating policies and procedure and
implemented several strategic initiatives to further expand and
grow this important new subsidiary. We have already seen
the benefit of our efforts and I remain confident of Nuvista’s
success as it continues to add further value to our business.
This year the Board has constituted a Nomination and
Remuneration Committee. Advocate Shah Monjurul Hoque,
an Independent Director, has been appointed as Chairman
of the Committee. The Committee will have a significant
role in assisting the Board in the nomination and selection of
directors and adopting a policy driven approach to determine
remuneration of the Board and top level executives.
I continue to be immensely impressed with the dedication,
commitment and skills of our people. It is their efforts that drive
the business forward, delivering an excellent performance and
strong growth across our business. I thankfully acknowledge
their contribution to the company. We are also grateful to
our shareholders for extending, at all times, their invaluable
support to the company, enabling the business to be in the
robust position it is in today. The success we have achieved is
only possible because of the collective efforts of all concerned.
I hope 2019-20 will continue to be another good year for
Beximco Pharma. I remain confident that we are taking the
right actions to continue to grow the business and deliver
value for our shareholders. Thank you for your continued trust
in us.
Thanking you
A S F Rahman
Chairman
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Chairman’s Statement | Annual Report 2018-19 | 53
Management Discussion and Analysis
spending on medicines reached $1.2 trillion in 2018 and is set
to exceed $1.5 trillion by 2023. In the next five years, more than
$100 billion worth of originator drugs will be coming off patent
and the biosimilar market will be nearly three times larger than
what it is today, with several key blockbuster biologics losing
their patent protection. This creates immense opportunities for
generic manufacturers, which Beximco Pharma can benefit
from if we can properly utilize our competitive advantages.
The country’s pharma sector has huge export potential and
the government has taken various initiatives to support the
industry in realizing this potential. Pharma export from the
country increased by 25.60% to $130 million in 2018-19,
which was $103.46 million in the previous year.
Although our pharma industry has made commendable
progress over the years, still we are almost entirely dependent
on the import of pharmaceutical raw materials or APIs.
Generic drug manufacturers around the world, including India,
are heavily dependent on APIs and intermediates from China.
Since 2018, hundreds of bulk drug factories in China have
been shut down due to new environmental regulations. This
led to shortage of API supply globally and a surge in API prices
across different categories pushing up the cost of pharma
production. The Bangladesh pharma industry has also been
hit by this disruption in API supply.
As a part of the government’s initiative to further develop
the pharmaceutical sector through backward integration,
an attractive incentive package has been declared for the
domestic manufacture of APIs. A 10% cash incentive is already
being offered to formulation exporters. The development of
relevant infrastructure in the country’s much awaited API
Industrial Park is in progress and companies who have been
allotted plots, are preparing to set up manufacturing facilities.
Domestic API production would make the pharma sector more
competitive and help it sustain beyond TRIPS regime.
Operating and Financial Performance
Continued Double Digit Revenue Growth
Our consolidated revenue in the domestic market increased
by an overall 25.1% to reach at Tk. 20,314 million in 2018-19
compared to Tk. 16,240 million for the year 2017-18. BPL’s
Nazmul Hassan MP
Managing Director
Industry Overview
Bangladesh is now home to one of the fastest growing
economies in the world with consistent growth in GDP and
per capita income and remarkable achievements in other
socio-economic indicators. According to IQVIA audited data,
the Bangladesh pharma market has maintained its double
digit growth, 10.64% in 2018-19, with total sales reaching
Tk. 223 (US $ 2.62) billion. Improved access to healthcare
facilities, health awareness of people, increasing coverage
of rural areas, and higher purchasing power have largely
contributed to this growth. With continued economic progress
and exceptional achievements in healthcare, Bangladesh is
projected to maintain this positive momentum in the coming
years.
The global generics industry is also growing rapidly and this
will continue to expand as countries around the world are
promoting the use of generics. As per the IQVIA report, global
54 | Annual Report 2018-19 | Management Discussion and Analysis
revenue on a standalone basis, grew by 17.3% as compared
to 10.2% in the prior period. Our constant strategic focus on
key therapeutic segments, particularly improving product mix
across the rapidly growing areas, contributed to this growth.
The first time full year consolidation of our subsidiary, Nuvista
Pharma, further supplemented the accelerated growth in the
domestic market.
While we are reinforcing our US position, we are also finalizing
the acquisition of two marketing approvals in the United
Kingdom, a fast-track precursor to enter into this regulated
market. We received WHO prequalification for Lamivudine 300
mg tablet, an antiviral product and completed European Union
Good Manufacturing Practice (GMP) Audits by German and
Malta Regulatory Authorities during the year.
We secured a robust 69% growth in export largely driven by
our sales in the US market. Revenue from export stands at Tk.
2,502 million as against Tk. 1,477 million of preceding year.
Export now accounts for 11% of our revenue. It is a matter
of pride that Beximco Pharma remains the sole Bangladeshi
company exporting pharmaceutical products to world’s most
stringent and regulated market, the United States. This is
yet another testament to our manufacturing excellence and
adherence to strict quality policies.
Strengthened Product Portfolio
We introduced 20 products, including four from our subsidiary
Nuvista Pharma, in the domestic market to expand and
strengthen our existing product portfolio. The year saw a
strong performance from our leading brands across key
therapeutic areas with cardiovascular, respiratory and anti-
diabetic posting impressive growth.
Our newly launched products cover 11 therapeutic segments,
which includes hormones, oral contraceptives, ophthalmic,
and cardiovascular to name a few. Importantly, we launched
recombinant human insulin (Gensulin), together with the insulin
pen (Gensupen), in collaboration with Polish biotech company,
Bioton S.A, which is a leading global player in human insulin.
Reinforcing International Market Positions
The Company completed 77 registrations of 50 Products in
23 countries to further broaden and consolidate our export
markets. In February 2019, we acquired 8 ANDAs from
Sandoz, USA, taking our US portfolio to 15 including 7 in-house
ANDAs. There is no doubt our growing presence as a reliable
manufacturer of quality generics has increased our potential
for further growth in the regulated markets including the USA.
We commenced export of Metformin Hydrochloride (500mg
and 750mg), an anti-diabetic, extended release product to the
US market; received US Food and Drug Administration (FDA)
approval for two cardiovascular drugs (Nadolol and Sotalol AF)
and an anti-allergy drug (Cyproheptadine). In July 2019, we
shipped Nadolol, our fifth product to the US market.
Profit Growth in Line with Revenue
The Company saw an increase in both pre- and after-tax profit
consistent with robust growth in sales revenue. Profit before
tax increased by 17.4% over the last year to reach at Tk. 3,946
million; profit after tax also grew by 20% to reach Tk. 3,040
million.
You will find five years’ comparative financial performance in
the attachment to the Directors’ Report.
National and International Recognitions
Being in the knowledge based industry we know innovation
is the key to drive differentiation and stay ahead in the
competition. We won the Bangladesh Business Innovation
Award 2019 in the category of Best Innovation in Health Care.
This is a recognition of our consistent effort to enrich our
portfolio with differentiated products.
We also won Bangladesh’s National Productivity and Quality
Excellence Award 2018
in recognition of outstanding
contribution to high productivity and excellence in product
quality.
We strive to make a positive impact on the lives of people
through our Corporate Social Responsibility initiatives and that
includes our program with globally renowned institutes. It
was a huge honor to win the ‘Community Partnership of the
Year’ at the Scrip Awards, presented in London in November
2018. The Community Partnership Award recognizes pharma
and biotech companies for the way in which they contribute to
the wider community. Beximco Pharma and DSM Nutritional
Products were awarded for their partnership with the Johns
Hopkins University in supporting community nutrition and
health research in rural Bangladesh and South Asia.
In November 2019, we won the Global Generics & Biosimilars
Awards 2019 in the category of Company of the Year, Asia
Pacific, which recognises the efforts made by global generics
and biosimilars sectors, to make affordable medicines
available to more patients across the globe.
Management Discussion and Analysis | Annual Report 2018-19 | 55
focused on achieving accelerated growth in the longer term
through consolidation of our export business.
A robust product pipeline is crucial for sustained growth in
this highly competitive generics landscape, and, keeping that
in mind, we make consistent investments in R&D with special
focus on developing specialized, hi-tech delivery systems.
We are stepping into new areas such as complex generics,
biosimilars and oncology.
We have given special focus on strengthening our API
capabilities; two of our small-scale units are now operational
and producing a few high value, patented APIs. We have taken
initiative to set up a large scale API production facility in the
API Park to produce a number of APIs to lower dependence on
import of these materials.
Built over four decades, BPL‘s reputation is founded on its
core values, commitment to excellence and efforts to provide
improved access to medicines. Quality and compliance are
key pillars of our consistent growth story. We are committed to
manufacture products, which conform to the highest standards
of quality. We are also taking several initiatives to optimize
our internal processes to capture all available synergies and
improve operational efficiencies.
Looking ahead, we are committed to building a promising
future by creating value for the patients we serve and for our
shareholders.
Nazmul Hassan MP
Managing Director
Beximco Pharma also received approval from the National
Board of Revenue, Bangladesh as an Authorised Economic
Operator (AEO), a privilege given to selected companies for
fast custom clearance in import and export.
Credit Rating
Credit Rating Information and Services Limited (CRISL), the
country’s leading Credit Rating company, has assigned AA+
(higher safety and high credit quality) rating in the long term
and ST-1 (strong internal fund generation and outstanding
alternative source of fund) rating in the short term to Beximco
Pharmaceuticals Limited.
Accounting
(IFRS)/International
Accounting Policies and Estimates
Bangladesh has adopted International Financial Reporting
Standards
Standards
(IAS). Beximco Pharma has been consistently applying
these standards in preparation of its financial statements.
Management has the discretion to decide on the accounting
framework and
the financial reporting
policies within
make estimates and provision in preparing those financial
statements. The Company’s accounting policies remain
consistent with those of the previous year and there has been
no changes in the accounting policies that could materially
impact the financial statements. The accounting estimates
and provisions are based on prudent judgments.
Risks related to the Financial Statements
The Company has a robust system of internal control and
well-designed accounting reporting process. The Company’s
functions are manned with
accounting and finance
adequate experienced professionals. Appropriate policies
and procedures, as well as adequate review and control
mechanisms are in place in every steps of the financial
reporting value chain to avoid, eliminate or reduce the risk of
errors, omissions or material mis-statements in the financial
reports. Moreover, quarterly and annual public reports are
subject to rigorous review by the Board’s audit committee in
addition to the annual accounts being audited by independent
external auditors.
Looking Ahead
We have completed a successful and exciting year as we
continued to execute our well defined strategic priorities. Our
domestic market is the key driver of our growth. Diversification
of our product portfolio and expansion of our domestic market
share will continue to remain our key strategic priority.
Alongside growing in the domestic market, we are equally
56 | Annual Report 2018-19 | Management Discussion and Analysis
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,
2019 along with the report of the auditors thereon.
General Economic Overview
Bangladesh’s economy in 2018-19 performed exceedingly well
with a record high 8.1% increase (Source: Asian Development
Bank) in GDP. The share of the industrial sector in the GDP rose
to 33.7% with 13% growth over the prior period. The nominal
per capita income increased by 9% to $1,909. The inflation
rate remained under control at a moderate 6% level. Double
digit growth in export earnings, higher remittances, robust
private consumptions and massive government spending for
infrastructure contributed to economic progress. Government
and other international agencies forecast a stable future
outlook with economy estimated to be growing by 8% in the
fiscal year 2019-20.
The Pharmaceuticals sector within the country continues
to benefit from the supportive policies of the government
and country’s stable economic progress. Demand
for
pharmaceutical products in Bangladesh is primarily driven by
increased individual private spending for health. Bangladesh
over the years has made a steady economic progress and it
has now set the goal of being 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 pharmaceuticals
and other healthcare products and services in the coming
years.
As reported last year, the government declared various
fiscal and non-fiscal incentive to encourage the domestic
manufacture of Active Pharmaceuticals
Ingredients. An
attractive 10% Cash incentive on the FOB value is also
available for the export of finished pharmaceuticals products
subject to fulfillment of certain conditions.
A new VAT Act became effective from July 1, 2019. The
Act was originally passed by the parliament a few years
back but its implementation was deferred. With regard to
the Pharmaceutical industry, the Act does not contain any
fundamental changes to the previous one except some
automation of the documentations and reporting.
Gross Margin and Profitability
The Company delivered strong results during 2018-19. Our
Consolidated Profit from Operation increased by a significant
25.8% to Tk. 5,066 million. Net Profit before tax increased
by 17.4% and after tax by 20.0% to Tk. 3,946 and 3,040
respectively. The table below provides Y-o-Y sales and profit
performance:
2018-2019
2017-2018
Growth
Million Taka
Sales Revenue
Gross Profit
Operating Profit
Pre-Tax Profit
Net Profit after Tax
22,816
10,620
5,066
3,946
3,040
17,716
8,286
4,026
3,361
2,533
28.8%
28.1%
25.8%
17.4%
20.0%
Consolidated Gross profit margin in 2018-19 slightly declined
to 46.6% from 46.8%. The rises in the prices of materials in
the international markets, moderate domestic inflation and
depreciation of Taka against its principal foreign currency US
dollar has raised the cost of goods sold. These have however,
been partly neutralized by leverage of higher sales, improved
product mix and planned cost management initiatives. All
these together helped sustain the overall gross margin at this
level.
The higher use of working capital credit facilities to support
the business growth resulted in an increase in finance costs.
Additionally, during the year the Company took a short term
Time Loan of Tk. 2,600 million for use towards the payment
of imported project materials for various projects under
implementation. We repaid Tk. 1,800 million of the borrowings
during the post-balance sheet period.
The Company has modified its gratuity policy, a long term
deferred employee benefit plan, to make it compliant to
the changes made through the Labor Act. This required an
additional provisioning of Tk. 125 million during the current
period to make up the shortfalls in the accumulated gratuity
provisions. Despite this, the Company maintained its operating
expenses at its current 24% level.
Report of the Directors to the Shareholders | Annual Report 2018-19 | 57
Comment on Continuity of Other Income
The government has declared 10% cash incentives on the
FOB value of finished pharmaceuticals subject to fulfillment of
certain conditions. Additionally, we have royalty income from
the sale of few selected products in the overseas markets.
These are accounted for on an accrual basis and reported as
“Other Income”. Both the income are linked to export. While
we expect these income to continue in the future periods, the
amounts are however, variable on products, markets and other
factors.
Profit and its Appropriation
Particulars
Amount in Taka’000
BPL (Stand-alone)
2018-19
2017-18
Net Profit After Tax
3,023,500
2,558,971
Adjustment for depreciation of
Revalued Assets
9,175
10,383
Profit Brought Forward
14,124,183
12,061,774
Profit Available for
Appropriation
Proposed Dividend:
Cash Dividend
17,156,858
14,631,128
(608,334)
(506,945)
Profit Carried Forward
16,548,524
14,124,183
Dividend
The Board of Directors recommends a 15.00% Cash Dividend
i.e. Tk. 1.50 per share for the year ended 30 June, 2019 for
onward approval at the Annual General Meeting.
reported to the Board. Based on the nature and extent of the
risk, the senior management of the Company takes appropriate
mitigating measures to avoid, eliminate or reduce risks at
functional, business and corporate level on a regular basis to
safeguard the Company’s assets and to protect shareholders’
interests.
Changing Economic Conditions
Economic advancement and consequent increase in the
purchasing power of the people has direct implication on the
demand for pharmaceutical products. Any decline in economic
growth could, as for any other industry, impact the future
demand for pharmaceutical products. 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.
Market Risk
The Company operates in a competitive domestic market. The
domestic market is exposed with over 400 local manufacturers
operating in the industry. However, only a small number of
these have the potential to compete directly with BPL in its
domestic market. BPL continuously expands and diversify its
product portfolio and builds competencies to compete with the
operators on price and quality both locally and internationally.
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
Pharma has talented marketing and sales team and strong
R&D with a proven record of success.
During the year, no interim dividend including stock dividend
has been declared or paid by the Company.
Risks and Concerns
Organizations are not free from risks that might arise both
from internal and external fronts. Like any other business
or industry, Beximco Pharma operating in a dynamic and
competitive market is exposed to risks that may affect its
business. The senior management of the Company oversees
risk management processes on a continual basis. Management
of risks involves identification and assessment of risks;
setting standard on Company’s risk appetite; and designing,
implementing and monitoring policies to appropriately address
various financial and non-financial risks. The identified risks,
which could potentially affect the achievement of strategic,
operational, financial and/or compliance objectives, are
Input Prices and Supply Chain Risk
As with other pharmaceutical companies of the country, BPL is
largely dependent on imported APIs. Any substantial increase in
prices in the international market may affect future profitability
of the company. To mitigate the risk, Beximco Pharma
imports raw materials from multiple sources, both local and
international, at competitive prices. The Company is not reliant
on any single supplier for its materials and this therefore,
reduces the individual supplier’s influence on procurement
prices. Most of the suppliers have their local agent and the
Company maintains close relationship with them. Moreover,
BPL manufactures few of the APIs and has plan to expand the
API manufacturing facilities to further strengthen its backward
linkage.
The Company’s customer base is also well diversified. No
58 | Annual Report 2018-19 | Report of the Directors to the Shareholders
single customer or market has significant influence on demand
for Company’s products.
Product Liability Risk
Pharmaceutical products are usually exposed to high quality
control risk. Each product is required to be marketed through
a stringent compliance procedure. Manufacturing of products
require the flexibility to accommodate the changing local and
global regulatory needs. Any deviation from the standard may
result in serious market reputational damages and might
also create a regulatory barrier. Over the years BPL has
been recognized locally and globally for quality standards
and manufacturing excellence. Our manufacturing facilities
are certified by leading global regulatory agencies. As such
Beximco Pharma is exposed to less quality control risk.
Additionally, the Company has taken adequate insurance
cover to minimize the product liability risk.
Technology Risk
The pharmaceutical industry is a technology and research
driven industry. The company’s management values data
technological
security, automation of operations and
therefore
advancement
continues to invest in state-of-the-art technologies, R&D
and laboratory infrastructure to build its manufacturing and
innovation capabilities. It maintains close ties with leading
global companies and organizations to remain updated on the
changes taking place in the industry.
industry. The Company
the
in
Regulatory Risk
Uncertainties emanating from significant changes in the
pharmaceutical policy, regulations, tax regime or other
business laws having bearing on pharmaceutical sector may
also threaten the growth potential of this business. However,
policies of the Government of Bangladesh are supportive to the
industry and pose no immediate risk. Rather the government
has declared a number of financial and non-financial facilities
for the industry to help its growth.
Formation of Nomination and Remuneration
Committee
As per provision of the Corporate Governance Code issued by
Bangladesh Securities and Exchange Commission, the Board
of Directors constituted a Nomination and Remuneration
Committee. Mr. Shah Monjurul Hoque, an Independent Director
has been made Chairman of the Committee. The Committee is
composed of as follows:
Shah Monjurul Hoque
Iqbal Ahmed
Osman Kaiser Chowdhury
Mohammad Asad Ullah
: Chairman
: Member
: Member
: Secretary
The Board has also approved the terms of reference which
includes assisting the Board in the formulation of the
nomination criteria setting qualifications, experiences and
other attributes for directors, formal policy on determining
remuneration for the directors and other top level executives.
Retirement and Re-election of Directors
Mr. Osman Kaiser Chowdhury and Mr. Abu Bakar Siddiqur
Rahman, Directors of the Company retire by rotation as per
Articles 126 and 127 of the Articles of Association of the
Company and being eligible, offer themselves for re-election.
Both Mr. Osman Kaiser Chowdhury and Mr. Abu Bakar Siddiqur
Rahman are long term directors in the Board. Detail biodata of
the Directors are provided in the Directors’ Profile section of
this Annual Report.
Re-appointment of Managing Director
As per provision of the Company’s Act 1994 Managing
Directors are appointed for a period of five years. The tenure
of Mr. Nazmul Hassan MP, Managing Director of the Company
expired on 7th May 2019. The Board after due evaluation of his
performance, has re-appointed him as Managing Director of
the Company for another period of 5 years with effect from 7th
May 2019 subject to confirmation of the Shareholders in the
43rd Annual General Meeting. The credentials of Mr. Hassan is
given in the Directors’ Profile section of this Annual Report.
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 42nd Annual General Meeting of the Company
has carried out the audit for the year ended 30 June 2019.
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 2019-20.
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
2019-20.
Report of the Directors to the Shareholders | Annual Report 2018-19 | 59
Related Party Disclosure
The Company has a number of transactions between its
subsidiaries and other related parties. The transactions are
carried out on an arm’s length basis. The Audit Committee
periodically reviews these transactions. The Full disclosure of
all related party transactions are provided in the notes to the
accounts.
Management Discussion and Analysis
Detailed discussion on the Operating and Financial performance
of the Company along with other disclosures as required under
Corporate Governance Code issued by Bangladesh Securities
and Exchange Commission through Notification No BSEC/
CMRRCD/2006-158/207/Admin/80 dated June 3, 2018 has
been separately reported by the Managing Director.
Remuneration to Directors
All the Directors in the Board except the Managing Director are
non-executive and receive no remuneration or benefits from
the Company other than the Board Meeting attendance fee.
The salary and other perquisites paid to the Managing Director
for his service has been disclosed in the notes to the accounts.
Directors’ Statement 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 and that
the accounting estimates are based on reasonable and
prudent judgment.
• The International Accounting Standards (IASs), International
Financial Reporting Standards (IFRSs) have been followed in
preparation of the financial statements.
• Internal Control System is sound in design and has been
effectively implemented and monitored.
• Interests of the minority shareholders have been duly
protected.
• There is no significant doubt about the ability of the Company
to continue as a going concern.
Declaration by CEO and CFO
Declaration by CEO and CFO on the Financial Statement of the
Company is attached 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:
Name
Representation
in the Board
Attendance
in Board
meetings
A S F Rahman
Chairman
Salman F Rahman MP
Vice Chairman
Nazmul Hassan MP
Managing
Director
Osman Kaiser Chowdhury Member
Iqbal Ahmed
A B Siddiqur Rahman
Dr. Abdur Rahman Khan
Shah Monjurul Hoque
Member
Member
Independent
Director
Independent
Director
11
7
12
12
12
12
11
11
The Pattern of Shareholding
The Shareholding of Directors, CEO, CFO, Company Secretary,
Key Executives and their spouses and children are provided
as Annexure- 3
the
Corporate Governance Compliance Report
In accordance with
requirement of Bangladesh
Securities and Exchange Commission Notification No. BSEC/
CMRRCD/2006-158/207/Admin/80, dated 3 June 2018,
Report on “Corporate Governance Compliance” is provided as
Annexure - 4
On behalf of the Board
Key Operating and Financial Data
The summarized key operating and financial data for 2018-2019
and immediately preceding five years is provided in Annexure- 2
A S F Rahman
Chairman
60 | Annual Report 2018-19 | Report of the Directors to the Shareholders
Annexure- 1
The Board of Directors
Beximco Pharmaceuticals Limited
Subject: Declaration on Financial Statements for the year ended on 30 June, 2019
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2016-158/207/Admin/80,
Dated June 03, 2018 & under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:
1. The Financial Statements of Beximco Pharmaceuticals Limited for the year ended on 30 June, 2019 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable
in the Bangladesh and any departure there from has been adequately disclosed;
2. The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order for
the financial statements to reveal a true and fair view;
3. The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in its
financial statements;
4. To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance
of accounting records;
5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and
procedures of the Company were consistently followed; and
6. The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and
there exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern.
In this regard, we also certify that:
i. We have reviewed the financial statements for the year ended on 30 June, 2019 and that to the best of our knowledge and
belief:
a. These statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
b. These statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws.
ii. There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.
Sincerely yours,
Nazmul Hassan MP
Nazmul Hassan MP
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Report of the Directors to the Shareholders | Annual Report 2018-19 | 61
Annexure- 2
Key Operating and Financial Data
30 June 2019 30 June 2018 30 June 2017
30 June 2016
Authorized Capital
Paid up Capital
Shareholders’ Equity
Fixed Assets (Gross)
15,000,000
4,055,564
29,864,324
43,454,027
9,100,000
4,055,564
27,351,837
39,081,675
9,100,000
4,055,564
25,072,426
31,692,789
9,100,000
3,862,442
23,059,412
28,756,326
31 Dec 2014
31 Dec 2013
Taka in Thousand
9,100,000
3,503,349
19,775,552
23,051,128
9,100,000
3,678,516
20,920,185
25,818,728
Net Asset Value (NAV) Per Share Tk.
Market Price Per Share
Price Earnings Ratio (Time)
73
83.50
11.16
67
93.90
15.02
62
113.00
20.58
60
83.50
17.47
57 56
47.20
58.70
12.36
14.82
Number of Shareholders
Foreign Investors
ICB including ICB
Investors Account
Sponsors, General Public
& Other Institutions
56,177
77
881
57,982
90
879
62,741
92
874
67,679
83
878
89,913
92,831
68 68
882 880
55,219
57,013
61,775
66,718
88,963
91,883
Number of employees
4,523
4,256
3,833
3,515
3,063
2,897
Total Sales
Export Sales
Gross Profit
Profit Before Tax
Net Profit
July 2018 -
June 2019
July 2017 -
June 2018
July 2016 -
June 2017
July 2015 -
June 2016
22,816,630
2,502,633
10,620,343
3,946,065
3,040,403
17,716,717
1,476,978
8,285,979
3,361,334
2,532,654
15,508,777
1,078,472
7,184,882
2,891,482
2,226,695
13,785,325
861,653
6,408,857
2,564,267
1,938,894
Jan 2014 -
Dec 2014
Jan 2013 -
Dec 2013
Taka in Thousand
10,490,699
671,289
4,838,800
2,093,594
1,404,763
11,206,886
500,469
5,104,191
2,109,556
1,528,298
EPS/Restated EPS- Tk.
Net Operating Cash Flow Per Share
New Product Launched-numbers
7.48
7.30
20
6.25
4.49
16
5.49
6.49
15
4.78
8.21
21
3.96 3.82
6.08
28 23
6.02
Stock Dividend
Cash Dividend
*18 months period.
-
15.00%
- -
12.50%
12.50%
5%*
15%*
5%
10.00%
5%
10.00%
62 | Annual Report 2018-19 | Report of the Directors to the Shareholders
Graphical View of Selected Growth Indicators
Shareholders’ Equity
Shareholders’ Equity
Export Sales
Export Sales
29,864
27,352
2,502
25,072
23,059
20,920
19,776
Taka in million
1,477
1,078
862
500
671
30 JU
NE 2019
30 JU
NE 2018
30 JU
NE 2017
30 JU
NE 2016
31 DEC 2014
31 DEC 2013
JULY 18 - JU
JULY 17 - JU
JULY 16 - JU
NE 19
NE 18
JULY 15 - JU
NE 17
JAN 14 - DEC 14
JAN 13 - DEC 13
NE 16
22,817
Total Sales
Total Sales
17,717
15,509
13,785
3,040
2,533
Net Profit
Net Profit
2,227
1,939
11,207
10,491
1,528
1,405
JULY 18 - JU
JULY 17 - JU
JULY 16 - JU
NE 18
JULY 15 - JU
NE 17
NE 16
JAN 14 - DEC 14
JAN 13 - DEC 13
NE 19
JULY 18 - JU
JULY 17 - JU
JULY 16 - JU
NE 18
JULY 15 - JU
NE 17
NE 16
JAN 14 - DEC 14
JAN 13 - DEC 13
NE 19
Report of the Directors to the Shareholders | Annual Report 2018-19 | 63
Annexure-3
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
1,189,550
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
-
-
-
-
-
64 | Annual Report 2018-19 | Report of the Directors to the Shareholders
Annexure-4
Corporate Governance Compliance Report
As per condition No. 1(5)(xxvii)
Status of compliance with the conditions imposed by the Commissions Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80, dated 3 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969
(Report under Condition No. 9)
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
Condition
No.
1
1(1)
1(2)
1(2)(a)
Board of Directors (BOD)
Board’s Size [number of Board members to be 5 – 20]
Independent Directors (ID)
Number of Independent Directors [at least 1/5th of the Board members shall be the
Independent Directors]
1(2)(b)(i)
Holding no share or holding less than 1% shares
1(2)(b)(ii)
Not being a sponsor and connected with any sponsor or director or nomonated
director or shareholder of the company or any of its associates, sister concerns,
subsidiaries, and parents or holding entities who holds 1% or more shares of the
total paid-up shares of the Company on the basis of family relationship and his or
her family members are also not allowed to hold more than 1% shares of the total
paid-up shares of the Company
1(2)(b)(iii)
Not an executive of the company in immediately preceding 2 (two) financial years
1(2)(b)(iv)
1(2)(b)(v)
1(2)(b)(vi)
1(2)(b)(vii)
Not having any pecuniary or otherwise relationship with the company or its
subsidiary/associated companies
Not a member or TREC (Trading Right Entitlement Certificate) holder, director or
officer of any stock exchange
Not a shareholder, director excepting independent director or officer of any member
or TREC holder of any stock exchange or an intermediary of the capital market
Not a partner or an executive or was not a partner or an executive during the
preceding 3 (three) years of the company’s statutory audit firm or audit firm
engaged in internal audit services or audit firm conducting special audit or
professional certifying compliance
1(2)(b)(viii)
Not an Independent Director in more than 5 listed companies
1(2)(b)(ix)
Not been convicted by a court as defaulter in any loan of a bank or NBFI
1(2)(b)(x)
Not been convicted for a criminal offence
1(2)(c)
1(2)(d)
1(2)(e)
1(3)
1(3)(a)
To be appointed by BOD and approved by the shareholders in the AGM
The post cannot remain vacant for more than 90 days
Office tenure of Independent Director
Qualification of Independent Director
Knowledgeable, having integrity, ability to ensure compliance with relevant laws
and make meaningful contribution to the business
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Report of the Directors to the Shareholders | Annual Report 2018-19 | 65
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
1(3)(b)(i)
1(3)(b)(ii)
1(3)(b)(iii)
1(3)(b)(iv)
1(3)(b)(v)
1(3)(c)
1(3)(d)
1(4)
1(4)(a)
1(4)(b)
1(4)(c)
1(4)(d)
1(4)(e)
1(5)
1(5)(i)
Business Leader: Promoter/director of an unlisted company having minimum paid
up capital of Tk. 100.00 mil. or any listed company or a member of any national or
international chamber of commerce/business association, or
Corporate Leader: who is or was a top level executive not lower than CEO/ MD/
AMD/DMD/COO/ CFO/CS or Head of Finance or Accounts or Head of Internal Audit
and Compliance or Head of Legal Service or a candidate with equivalent position
of an unlisted company having minimum paid up capital of Tk. 100.00 mil. or of a
listed company, or
Former official of Govt./statutory/autonomous/regulatory body in the position not
below 5th Grade of the national pay scale, who has at least educational background
of bachelor degree in economics/commerce/business or law, or
√
University Teacher having educational background in Economics or Commerce or
Business Studies or Law, or
Practicing advocate at least in the High Court Division of Bangladesh Supreme Court
or a CA/CMA/CFA/CCA/CPA or CS
Having at least 10 (ten) years of experiences in any field mentioned in clause (b)
Qualification of Independent Directors may be relaxed subject to prior approval of
the Commission.
N/A
Duality of Chairperson of the Board and MD or CEO
The positions of the Chairperson of the Board and MD and/or CEO of the company
shall be different individuals
MD and/or CEO of a liated company shall not hold the same position in another
listed company
Chairperson shall be a non-executive directors of the company
The Board shall clearly define respective roles and responsibilities of the
Chairperson and the MD and/or CEO
In the absence of the Chairperson of the Board, the remaining members may elect
from non-executive directors as Chairperson for that particular Board’s meeting
Inclusions in Director’s Report to Shareholders
Industry outlook and possible future developments
1(5)(ii)
Segment-wise or product-wise performance
1(5)(iii)
1(5)(iv)
1(5)(v)
1(5)(vi)
1(5)(vii)
1(5)(viii)
1(5)(ix)
1(5)(x)
1(5)(xi)
1(5)(xii)
1(5)(xiii)
Risks and concerns including internal and external risk factors, threat to
sustainability and negative impact on environment, if any
Discussion on COGS, Gross Profit and Net Profit Margins
Discussion on continuity of Extra-Ordinary gain or loss
A detailed discussion on related party transactions
A statement of utilization of proceeds raised through public issues, rights issues
and/or any other instruments
Explanation, if the financial results deteriorate after going for IPO, RPO, Right Offer,
Direct Listing, etc.
Explanation about significant variance between Quarterly Financial performance
and Annual Financial Statements
Remuneration paid to directors including Independent Directors
Statement on fair presentation in the financial statements
Maintaining proper books of accounts
Consistent application of appropriate accounting policies, and accounting estimates
being reasonable and prudent
66 | Annual Report 2018-19 | Report of the Directors to the Shareholders
Company operates in a
single product segment.
√
√
√
√
√
√
√
√
√
√
√
N/A
N/A
N/A
√
√
√
√
Condition
No.
1(5)(xiv)
1(5)(xv)
1(5)(xvi)
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
IAS/IFRS applied and adequate disclosure made
Soundness of internal control system and it’s monitoring
A statement that minority shareholders have been protected from abusive actions
by, or controlling shareholders acting either directly or indirectly
1(5)(xvii)
Statement regarding ability to continue as going concern
1(5)(xviii)
Significant deviations from last year’s operating results
1(5)(xix)
1(5)(xx)
1(5)(xxi)
Summary of key operating/financial data of last 5 years
Reason for non declaration of Dividend
Board’s statement on interim bonus share or stock dividend
1(5)(xxii)
Number of Board meetings and attendance of directors
1(5)(xxiii)
Pattern of shareholding (along with name wise details)
1(5)(xxiii)(a)
Parent/Subsidiary/Associate Companies & related parties
1(5)(xxiii)(b)
Directors, CEO, CS, CFO, HOIA, their spouses & children
1(5)(xxiii)(c)
Executives (Top 5 salaried employees other than above)
1(5)(xxiii)(d)
Shareholders holding 10% or more voting interest
1(5)(xxiv)
Appointment/re-appointment of a director
1(5)(xxiv)(a)
A brief resume of the director
1(5)(xxiv)(b)
Nature of his/her expertise in specific functional areas
1(5)(xxiv)(c)
Names of companies in which he/she holds directorship and the membership of
committees of the board
1(5)(xxv)
A Management’s Discussion and Analysis signed by CEO or MD focusing on:
1(5)(xxv)(a)
Accounting policies and estimation
1(5)(xxv)(b)
Changes in accounting policies and estimation
1(5)(xxv)(c)
Comparative analysis of financial performance or results and financial position as
well as cash flows for current financial year with immediate preceding five years
explaining reasons thereof
1(5)(xxv)(d)
Compare such financial performance or results and financial position as well as
cash flows with the peer industry scenario
1(5)(xxv)(e)
Briefly explain the financial and economic scenario of the country and the globe
1(5)(xxv)(f)
1(5)(xxv)(g)
1(5)(xxvi)
1(5)(xxvii)
1(6)
1(6)
1(7)
1(7)(a)
1(7)(b)
Risks and concerns issues related to the financial statements, explaining such risk
and concerns mitigation plan of the company
Future plan or projection or forecast for company’s operation, performance and
financial position
Declaration or certification by the CEO and the CFO to the Board as required under
condition No. 3(3) shall be disclosed as per Annexure- 1
The report as well as certificate regarding compliance of conditions of this Code
as required under condition No. 9 shall be disclosed as per Annexure-5 and
Annexure-4.
Meetings of the Board of Directors
Shall conduct Board meetings and record the minutes of the meetings as per the
provisions of the relevant Bangladesh Secretarial Standards (BSS)
Code of Conduct for the Chairperson, other Board members and Chief Executive
Officer
A code of conduct for the Chairperson of the Board based on the recommendation
of the Nomination and Remuneration Committee (NRC) at condition No. 6.
The code of conduct as shall be posted on the website of the company
Disclosed in Annexure- 2
Disclosed in Annexure-2
Disclosed in Annexure- 1
√
√
√
√
√
√
N/A
N/A
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Report of the Directors to the Shareholders | Annual Report 2018-19 | 67
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
2
2(a)
2(b)
2(c)
2(d)
2(e)
3
3(1)
3(1)(a)
3(1)(b)
3(1)(c)
3(1)(d)
3(1)(e)
3(2)
3(3)
3(3)(a)
3(3)(a)(i)
3(3)(a)(ii)
3(3)(b)
3(3)(c)
4
4(i)
4(ii)
5
5(1)(a)
5(1)(b)
5(1)(c)
5(2)(a)
5(2)(b)
5(2)(c)
5(2)(d)
5(2)(e)
Governance of Board of Directors of Subsidiary Company
Composition of BOD to be similar to holding company
One Independent Director 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
Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer
(CFO), Head of Internal Audit and Compliance (HIAC) and Company Secretary (CS)
Appointment
Appointment of MD or CEO, CS, CFO and a HIAC
The positions of the MD or CEO, CS, CFO and HIAC shall be different individuals
The MD or CEO, CS, CFO and HIAC of a listed company shall not hold any executive
position in any other company at the same time
The Board shall clearly define respective roles, responsibilities and duties of the
CFO, the HIAC and the CS
The MD or CEO, CS, CFO and HIAC shall not be removed from their position without
approval of the Board
The MD or CEO, CS, CFO and HIAC of the company shall attend the meetings of the
Board
Duties of MD or CEO and CFO
The MD or CEO and CFO shall certify to the Board that they have reviewed financial
statements for the year
Financial statements do not contain anything which is materially untrue or
misleading
Financial statements present a true and fair view of the company’s affairs and are
in compliance with existing accounting standards and applicable laws
The MD or CEO and CFO shall also certify that there are no transactions entered
during the year which are fraudulent, illegal or in violation of the code of conduct
The certification of the MD or CEO and CFO shall be disclosed in the Annual Report
Board of Directors’ Committee
Audit Committee
Nomination and Remuneration Committee
Audit Committee
Having Audit Committee as a sub-committee of the BOD
Assist the BOD in ensuring fairness of financial statements and a good monitoring
system
Duties of Audit Committee clearly set out in writing
Audit Committee composition
Audit Committee members to be non-executive
Members to be “financially literate” and at least one to have 10 years of
accounting/financial management experience
Vacancy in Audit Committee to be fiiled up immediately or no later than 1 month
The CS to act as the secretary of the Audit Committee
68 | Annual Report 2018-19 | Report of the Directors to the Shareholders
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
N/A
√
There has been no such
vacanacy.
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
5(2)(f)
5(3)(a)
5(3)(b)
5(3)(c)
5(4)(a)
5(4)(b)
5(5)
5(5)(a)
5(5)(b)
5(5)(c)
5(5)(d)
5(5)(e)
5(5)(f)
5(5)(g)
5(5)(h)
5(5)(i)
5(5)(j)
5(5)(k)
5(5)(l)
No quorum in Audit Committee meeting without one Independent Director
Chairperson to be an Independent Director, selected by the BOD
In the absence of the Chairperson of the Audit Committee, the remaining members
may elect one of themselves as Chairperson for that particular meeting
Chairperson of audit committee to remain present in AGM
The Audit Committee shall conduct at least its four meetings in a financial year
The meeting of the Audit Committee shall be constituted in presence of either two
members or two-third of the members of the Committee, whichever is higher,
where presence of an Independent Director is a must
Role of Audit Committee
Oversee the financial reporting process
Monitor choice of accounting policies and principles
Monitor Internal Audit and Compliance process, including approval of the Internal
Audit and Compliance Plan and review of the Internal Audit and Compliance Report
Oversee hiring and performance of external auditors
Meeting with the external auditors for review of the annual financial statements
Review the annual financial statements
Review the quarterly and half yearly financial statements
Review the adequacy of internal audit function
Review the Management’s Discussion and Analysis before disclosing in the Annual
Report
Review statement of significant related party transactions
Review Letter of Internal Control weakness issued by statutory auditors
Oversee the determination of audit fees and time required for effective audit and
evaluate the performance of external auditors
5(5)(m)
Review disclosures/statements/ declarations about uses of funds Raised through
IPO/RPO/Rights Issue
5(6)(a)
Reporting to the Board of Directors
5(6)(a)(i)
Reporting on the activities of Audit Committee
5(6)(a)(ii)(a)
Reporting on conflicts of interests
5(6)(a)(ii)(b)
Reporting on suspected/presumed fraud or irregularity or material defect in the
internal control system
5(6)(a)(ii)(c)
Reporting on suspected infringement of laws
5(6)(a)(ii)(d)
Reporting on any other matter to disclose immediately
5(6)(b)
Reporting to BSEC
5(7)
6
6(1)
6(1)(a)
6(1)(b)
6(1)(c)
6(2)
Reporting to the Shareholders and General Investors
Nomination and Remuneration Committee (NRC)
Responsibility to the Board of Directors
Shall have a NRC as a sub-committee of the Board
Assists the Board in formulation of the NRC policy
The Terms of Reference (ToR) of the NRC shall be clearly set forth in writing
Constitution of the NRC
√
√
N/A
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
-
√
-
-
-
-
-
√
√
√
√
There has been no such
instances
Total 4 meetings held in the
FY 2018-19.
Referred to Report of the
Audit Committee.
No such IPO/RPO/Right
Issue occurred during FY
2018-19.
Audit Committee found no
such issue or activity.
-
-
-
-
-
-
Report of the Directors to the Shareholders | Annual Report 2018-19 | 69
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
No such instance occurred
during the period.
No such instance found
during the period.
No such instance
happened during the
period.
6(2)(a)
6(2)(b)
6(2)(c)
6(2)(d)
6(2)(e)
6(2)(f)
6(2)(g)
6(2)(h)
6(2)(i)
6(3)
6(3)(a)
6(3)(b)
6(3)(c)
6 (4)
6(4)(a)
At least three members including an Independent Director
All Committee members shall be non-executive directors
Members of the Committee shall be nominated and appointed by the Board
The Board reserve the authority to remove and appoint any member of the
Committee
The Board shall fill the vacancy in case of death, resignation, disqualification, or
removal of any member
The Chairperson of the Committee may appoint external expert for advice or
suggestion
The company secretary shall act as the secretary of the Committee
Quorum of the NRC meeting shall not constitute without attendance of at least an
Independent Director
No remuneration other than director fees/honorarium for any member
Chairperson of the NRC
Board shall select 1 (one) member of the NRC to be Chairperson who shall be an ID
In the absence of regular Chairperson, the position may elect from the remaining
members of the committee
Chairperson shall attend the AGM
Meeting of the NRC
At least one meeting in a financial year
6(4)(b)
Any emergency meeting upon request by any member of the NRC
6(4)(c)
6(4)(d)
6(5)
6(5)(a)
6(5)(b)
Quorum: Higher of two members or 2/3 of total members including at least one
independent director
The proceedings of each meeting shall duly be recorded in the minutes and such
minutes shall be confirmed in the next meeting of NRC
Role of the NRC
Shall be independent and responsible or accountable to the Board and to the
shareholders
NRC shall oversee, among others, the following matters and make report with
recommendation to the Board:
6(5)(b)(i)
6(5)(b)(i)(a)
Formulation of the nomination criteria and recommend a policy to the Board, relating
to the remuneration of the directors, top level executive, considering the following:
The level and composition of remuneration shall be reasonable and sufficient to
attract, retain and motivate suitable directors
6(5)(b)(i)(b)
Clear relationship among remuneration, performance & benchmarks
6(5)(b)(i)(c)
Balance between fixed and incentive pay reflecting short and long-term performance
objectives appropriate to the working of the company and its goals
6(5)(b)(ii)
Devising a policy on Board’s diversity
6(5)(b)(iii)
Identification of qualification of directors and recommendation for their appointment
and removal to the Board
6(5)(b)(iv)
Evaluating the performance of independent directors and the Board
6(5)(b)(v)
6(5)(b)(vi)
Identifying needs for employees and determine their selection, transfer or
replacement and promotion criteria
Developing, recommending and reviewing annually the company’s human resources
and training policies
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
70 | Annual Report 2018-19 | Report of the Directors to the Shareholders
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
External or statutory
auditors are not engaged
in any kind of internal
issue of the company.
The auditors performed
no other services except
statutory audit.
6(5)(c)
7
7(1)(i)
7(1)(ii)
7(1)(iii)
7(1)(iv)
7(1)(v)
7(1)(vi)
Disclose the nomination and remuneration policy and the evaluation criteria and
activities of NRC during the year at a glance in its annual report
External or Statutory Auditors
Non-engagement in appraisal/valuation/fairness opinions
Non-engagement in designing & implementation of Financial Information System
Non-engagement in Book Keeping or accounting
Non-engagement in Broker-Dealer services
Non-engagement in Actuarial services
Non-engagement in Internal Audit services or special audit services
7(1)(vii)
Non-engagement in services determined by Audit Committee
7(1)(viii)
Not involved in audit or certification services on compliance of corporate governance
7(1)(ix)
Not involved in any other service that creates conflict of interest
7(2)
7(3)
8
8(1)
8(2)
8(3)
9
9(1)
9(2)
9(3)
No partner or his/her family or employees of the external audit firms hold any share
at least during the tenure of their audit assignment
Representative of external auditors shall remain present in the AGM
Maintaining a website by the Company
An official website linked with the website of the stock exchange
Website shall keep functional from the date of listing
Shall make available the detailed disclosures on website as required under the
listing regulations of the concerned stock exchanges
Reporting and Compliance of Corporate Governance
Compliance certificate on Corporate Governance Code of the Commission shall be
disclosed in the Annual Report
The professional who will provide the certificate on compliance of this Corporate
Governance Code shall be appointed by the shareholders in the AGM
The directors shall state, in accordance with the Annexure-C attached, in the
directors’ report whether the company has complied with these conditions or not
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Report of the Directors to the Shareholders | Annual Report 2018-19 | 71
Annexure-5
72 | Annual Report 2018-19 | Report of the Directors to the Shareholders
Report of the Audit Committee
I am pleased to present the report of the Audit Committee of Beximco Pharmaceuticals Limited in pursuance with the Corporate
Governance Guidelines of Bangladesh Securities and Exchange Commission (BSEC), dated June 03, 2018.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 BSEC which includes but not
confined to overseeing the financial reporting process, monitoring accounting policies and principles, evaluating internal control
system, reviewing the statement of significant related party transactions, assessing potential conflict of interests and reviewing
the financial statements of subsidiary company. This report is a brief on the activities performed by the Audit Committee
throughout the year.
Review of Financial Statements
The Audit Committee in its meeting held on 23 October 2019 reviewed along with management, the financial statements and
the report of the auditors of the company and its subsidiaries for the year ending on June 30, 2019. During the meeting Mr.
Mohammad Ali Nawaz, the Chief Financial Officer of the Company presented the annual accounts along with the independent
auditors report to the committee. Detailed discussions on the financial statements were held with the representatives of the
management of the Company. The CFO briefed the Committee that the consolidated as well as standalone financial statements
have been prepared in compliance with IFRS/IAS. He appraised the Committee that the accounting policies applied in preparation
of the financial statements are consistent with those of the previous financial years and are within the framework of international
accounting standards and practices. The Committee reviewed the significant estimates and judgements made in preparation of
the accounts and looked into their prudence and justification. They also evaluated the compliance of the financial statements to
the disclosure requirements as per IFRS/IAS and other regulatory authorities including BSEC. They further discussed the financial
reporting process and the adequacy of the internal control system of the company in place, to prevent errors and fraudulent
activities.
The Committee carefully examined the related party transactions carried out among 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 as per IAS 24:
‘Related Party Disclosures’. 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 annual 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.
Meetings and Attendance
The Audit Committee held four meetings to carry out its business under the ToR during the year. The membership of the Audit
Committee together with their attendance at the meeting is given below:
Report of the Audit Committee | Annual Report 2018-19 | 73
Membership
Representation in the Board
Position in the Committee
Attendance in Meeting
Dr. Abdur Rahman Khan
Shah Monjurul Hoque
Independent Director
Independent Director
Osman Kaiser Chowdhury, FCA
Director
Mohammad Asad Ullah, FCS
Company Secretary
Chairman
Member
Member
Secretary
4/4
4/4
4/4
4/4
External Auditor
The Committee assessed the independence, objectivity and expertise of the independent auditors engaged to carry out the
audit for the year 2018-19. Based on the evaluation, the Committee proposed the Board to re-engage existing auditors M/S M
J Abedin & Company, Chartered Accountants, for the year 2019-20 which shall be subject to the approval of the shareholders
in the Annual General Meeting.
Other Reviews and Activities
During 2018-19 the committee also assessed and examined risk management process, monitored internal audit and compliance
process and reviewed the reports thereon. The financial reporting process and the related compliance and disclosure issues also
came up as matters of periodic review by the committee. The senior management of the Company on invitation attended various
meetings of the audit committee to apprise the members on different issues. The committee noted no material deviations or
non-compliance or adverse audit findings that warrants for Board or shareholders’ attention during the year under review.
Dr. Abdur Rahman Khan
Chairman
Audit Committee
74 | Annual Report 2018-19 | Report of the Audit Committee
Report of the Nomination
and Remuneration Committee
I am pleased to present the report of the Nomination and Remuneration Committee (NRC) of Beximco Pharmaceuticals Limited
in pursuance with the Corporate Governance Guidelines.
NRC is a new Committee constituted on 24 December 2018 as a sub Committee of the Board with specific Terms of Reference
(ToR). Since formation, the Committee held one meeting which was attended by all the members of the Committee.
The Committee in its meeting discussed in detail the ToR set out by the Board, the role of the Committee and its modus operandi.
The Committee decided to review the code of conduct for the Chairman, Board members and the Managing Director of the
Company. It was also agreed to review the existing policies of the Company including policy on remuneration for Directors and
top level executives.
Shah Monjurul Hoque
Chairman
Nomination and Remuneration Committee
Report of the Nomination and Remuneration Committee | Annual Report 2018-19 | 75
Notes on Corporate Governance
Beximco Pharma places the greatest emphasis on maintaining
the highest standard of corporate governance. As a trustee of
all stakeholders of the Company, the Board is fully aware of
its responsibilities to the interest of all concerned. We believe
good governance is inevitable for the long-term performance
and sustainability of the company as well as to protect
and enhance the interests of the shareholders and other
stakeholders.
While the Directors’ report provides details on Company’s
compliance to the statutory code of corporate governance, the
paragraphs below further explain how corporate governance
works at Beximco Pharma.
Composition and Diversity of the Board
Board of Directors of Beximco Pharma comprise of eight
members with two independent directors. All the members of
the Board are non-executive excepting the Managing Director
who is an ex-officio Director. The Board of Directors is the
highest level of authority in the organization structure of of the
Company. The primary role of the Board is to ensure effective
governance over the performance and affairs of the company.
The Board is collectively responsible to the Company’s
shareholders for the appropriate conduct and success of
the business. The Board meets periodically to oversee the
Company’s affairs, gives approval and strategic direction to
important business and policy matters.
Beximco Pharma’s Board is well diversified in terms of
industry experience, management expertise, age, education,
professional background etc., to provide appropriate direction
to the Company’s management for sustainable development
and growth of the Company.
Board Committees
The Board has set up two important Committees namely, Audit
Committee and Remuneration and Nomination Committee
(NRC), to assist the Board in certain matters specified in the
respective terms of reference of the Committees.
Audit Committee consists of three non-executive directors,
two of them are Independent Director. Dr. Abdur Rahman
Khan an Independent Director of the Board is the Chairman of
the Committee. Audit Committee’s primary role is to oversee
financial reporting, risk management and internal control
process of the business. The Audit Committee submits
periodic reports to the Board.
The Board has constituted a three member Nomination and
remuneration Committee (NRC) with Mr. Advocate Shah
Monjurul Hoque, an Independent Director as its Chairman. The
primary function NRC is to assist the Board in determination of
qualification criteria for the directors, fixation of remuneration
and compensation for the Directors and top executives of the
Company.
Executive Committee
Next to the Board, is a five-member Executive Committee
(EC) for closer monitoring of business performance and
to provide operational guidance. A representative of the
Board holds the position of Chairman of the Committee. The
Executive Committee meets on a quarterly basis. Its scope
of work includes among others, periodic review of business
performance, approval of the budget and evaluation of
capital expenditure proposals. The Executive Committee also
approves the operating organization structure and significant
policies and procedures. Executive Committee provide
significant inputs to enable the Board to make well-informed
decisions.
Management Committee
The Management Committee comprises operational heads
and representatives from the Board and Executive Committee
and is chaired by the Managing Director. The Committee
meets on a monthly basis. It is responsible for implementing
the decisions of the Board and the Executive Committee and
supervision of the day to day affairs of the Company. The
management Committee acts as a centre of co-ordination
across the functions and resolves different operational issues.
Appointment, Retirement and Re-election of
Directors
As per provisions of Bangladesh Company Act, members
of the Board of Directors excepting the Independent and
Managing Directors are elected by the shareholders in the
Annual General Meeting. They are elected for a period of one
76 | Annual Report 2018-19 | Notes on Corporate Governance
year and at least one third of the Directors retire by rotation
in every Annual General Meeting (AGM). Retiring Directors
are however, eligible for re-election and appointment by the
shareholders in the AGM.
The Managing Director is appointed by the Board but such
appointment is to be approved by Shareholders in the AGM.
The tenure of managing director is five years which can be
renewed unrestricted number of times. The Managing Director
shall not be subject to retirement by rotation.
Independent Directors are also appointed by the Board and
be approved by the shareholders in the AGM. The tenure of
office of an independent director is three years, which may be
extended for one tenure only. However, a former independent
director may be considered for reappointment for another
tenure after a time gap of one tenure, i.e., three years from his
or her completion of consecutive two terms.
Internal Control
Beximco Pharma employs a sound system of internal control
including financial control which is designed to effectively
achieve its business objectives through the best utilization
of resources. A good internal control system enhances the
reliability and integrity of financial and operational activities
and also confirms compliance with laws, regulations and
ethical principles.
Over
the years, Beximco Pharma has successfully
implemented a robust internal control system which includes
a well-designed management structure, clearly defined
responsibilities, delegation of authorities, the establishment of
accountability at each segment of the business. Appropriate
monitoring and reporting systems are in place to establish
accountability and monitor performance at every level. The
Company uses ERP tools and different tailor-made software
to collect, collate, analyse, interpret and report financial and
other non-financial information, in some cases real-time basis.
The Company has a separate Internal Audit and Compliance
department. They carry out financial and compliance audit
across the organizations throughout the year. The department
is adequately resourced with experienced personnel.
Notes on Corporate Governance | Annual Report 2018-19 | 77
Investor Relations
Beximco Pharma has a separate Company Secretarial
Department adequately manned with qualified professionals
to carry out the regulatory company secretarial functions and
to meet the shareholders’ and investors’ requirements and
queries. There is also a dedicated team within accounting
and finance function to deal with investor related compliance
issues. Our Investor Relations team places high priority
towards investor queries and complaints. During the year
under review, the company has not received any reportable
complaints from its shareholders/investors.
Communication with Shareholders
The shareholders and investors are kept well informed of
the Company’s operation and performance through periodic
updates of price sensitive information, publications of financial
reports, Investors’ meeting with the Company’s top executives
and Annual General Meeting (AGM) of the Company. Any price
sensitive information are immediately released through the
stock exchanges and company’s own website. In applicable
cases such information are also published in the print media
and online portals.
Company unfailingly holds AGM as required by the Company
Act, 1994 to inform the shareholders about the overall affairs
of the company and to obtain their consent on agenda placed
in the meeting. Extra-ordinary General Meeting (EGM) are also
held in cases that require calling of such meeting. The board
members and senior management of the company remains
present in those meetings to answer queries and address any
concerns of the shareholders and investors.
Beximco Pharma is the only company in Bangladesh listed
with Alternative Investment Market (AIM) of London Stock
Exchange. In compliance to AIM regulation, the Company
has engaged SPARK Advisory Partners Limited as Nominated
Advisor (NOMAD), SP Angel Corporate Finance LLP as
designated Broker and FTI Consulting LLP as Public Relations
agent. Analyst of SP Angel publishes report on the Company
for the investors.
We are followed by a wide range of institutional investors. The
senior management of the company meets large scale GDR
investors overseas at least twice a year to update them about
the ongoing business of the Company. The fund managers and
78 | Annual Report 2018-19 | Investor Relations
analysts at home also holds pre-arranged meeting with our
top management to know the present future potentials of the
Company.
Reporting to the Shareholders
The company prepares unaudited financial statements for
first, second and third quarters and full year Audited Financial
Statements and publishes the summary of the financial
statements through newspapers and online portals as required
by law. Detailed financial statements are released through
the Company’s website. Additionally, the Company prepares
Annual Reports that contains detailed operational and financial
information along with other statutory disclosures.
Company’s Reporting Calendar
Financials
Financials
Financials
Q1
November
Q2
January
Q3
April
Full
Year
Audited
Financials
October
Annual
Report
December
Website Communication
The Company has a rich website (www.beximcopharma.com)
that contains historical as well latest information about the
Company and its operation. The website is well organized to
meet information requirement of different stakeholders and
updated on regular basis. The company’s corporate website
is linked with Dhaka, Chittagong and AIM of London Stock
Exchange.
In addition to accessing information on the company’s
website, investors and other report users are able to contact
the company for their information. The contact details are
available on the company’s website, in the annual report and
in other communications.
The 42nd Annual General Meeting of the shareholders of Beximco Pharmaceuticals Limited was held on December 22, 2018 at
Beximco Industrial Park, Saravo, Kashimpur, Gazipur. Mr. Osman Kaiser Chowdhury, Director 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% cash dividend for the year ended June 30,
2018. At the end of the meeting Mr. Osman Kaiser Chowdhury expressed his appreciation towards shareholders for their interest
in the Company and their continued support.
Investor Relations | Annual Report 2018-19 | 79
Value Added Statement
For the Year Ended 30 June, 2019
Value Added :
Sales & Other Income
Bought-in-Materials & Services
Appilcations :
Retained by the Company
Salaries and Benefits to Employees
Interest to Lenders
Dividend to Shareholders
Duties & Taxes to Govt. Exchequer
Taka in thousand
Tk.
%
26,515,562
(12,661,602)
13,853,960
3,453,232
3,557,598
1,029,763
631,835
5,181,532
13,853,960
100
25
26
7
5
37
100
80 | Annual Report 2018-19 | Value Added Statement
Financial Statements-Consolidated
Beximco Pharmaceuticals Ltd. and Its Subsidiaries
Consolidated Audited Financial Statements
For the Year Ended June 30, 2019
Independent Auditor’s Report
To the Shareholders of
Beximco Pharmaceuticals Limited and its Subsidiaries
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Beximco Pharmaceuticals Limited (the “Company”), which comprise the
consolidated Statement of Financial Position as at June 30, 2019 and 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 then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies.
The Financial statements of the same year of the subsidiaries Beximco Pharma API Limited was audited by us and Nuvista Pharma Limited
was audited by A. Qasem & Co. Chartered Accountants, who through their report dated August 11, 2019 and October 14, 2019 respectively
expressed an unmodified opinion on those statements.
In our opinion, the accompanying consolidated financial statements of the Company give a true and fair view of the consolidated financial
position of the Company as at June 30, 2019, and of its consolidated financial performance and its consolidated cash flows for the year
then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994, the Securities and Exchange
Rules 1987 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the
Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) together with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled
our other ethical responsibilities in accordance with these ethical requirements and the IESBA Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial
statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Risk
Our Response to the Risk
Valuation of Property, Plant and Equipment (PPE)
The carrying value of the PPE was Tk. 34,056,667,212 as at June
30, 2019.
Expenditures are capitalized if they create new assets or enhance the
existing assets, and expensed if they relate to repair or maintenance
of the assets. Classification of the expenditures involves judgment.
The useful lives of PPE items are based on management’s estimates
regarding the period during which the assets or its significant
components will be used. The estimates are based on historical
experience and market practice and take into consideration the
physical condition of the assets.
The valuation of PPE was identified as a key audit matter due to the
significance of this balance to the consolidated financial statements
and that there is significant measurement uncertainty involved in
this valuation.
See Note No. 4 to the consolidated financial statements
Our audit included the following procedure:
• We assessed whether the accounting policies in relation to the
capitalization of expenditures are in compliance with IFRS and
found them to be consistent.
• We inspected a sample of invoices and L/C documents to
determine whether the classification between capital and revenue
expenditure was appropriate.
• We evaluated whether the useful lives determined and applied by
the management were in line with historical experience and the
market practice.
We checked whether the depreciation of PPE items was commenced
timely, by comparing the date of the reclassification from capital
work in progress to ready for use, with the date of the act of
completion of the work.
82 | Annual Report 2018-19 | Financial Statements-Consolidated
Risk
Our Response to the Risk
Valuation of Inventory
The inventory of Tk. 5,924,031,678 as at June 30, 2019 was held
at different locations across the country.
We verified the appropriateness of management’s assumptions
applied in calculating the value of the inventory by:
Inventories are carried at the lower of cost and net realizable value.
As a result, the management apply judgment in determining the
appropriate values for slow-moving or obsolete items.
Since the value of Inventory is significant to the consolidated
Financial Statements and there is significant measurement
uncertainty involved in this valuation, the valuation of inventory
was significant to our audit.
See Note No. 9 to the consolidated financial statements
Evaluating the design and implementation of key inventory
controls.
Attending inventory counts on sample basis and reconciling the
count results to the inventory listing to test the completeness of
data.
Reviewing the requirement of inventory provisioning and action
there upon by the management.
Comparing the net realizable value obtained through a detailed
review of sales subsequent to the year-end, to the cost price of
a sample of inventories.
Related party transactions
The Company has related party transactions as described in Note
No. 36 of the consolidated financial statements.
We focused on identification of related parties and disclosure of
related party transactions in accordance with relevant accounting
standards.
Our audit procedures amongst others included the following:
Evaluated the design and tested the operating effectiveness
of controls over identification and disclosure of related party
transactions.
Evaluated the transactions among the related parties and tested
material accounts balances.
Evaluated the disclosures in the consolidated financial statements
in compliance with IAS 24.
Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than
the consolidated financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the
date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on such work we perform, we conclude that there is a material misstatement of this other information, we are required to communicate
the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the consolidated Financial Statements
and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Company in accordance
with IFRSs, 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 consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going
Financial Statements-Consolidated | Annual Report 2018-19 | 83
•
•
•
•
•
•
•
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit 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 internal controls of the Company.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company
to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
84 | Annual Report 2018-19 | Financial Statements-Consolidated
•
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, The Securities and Exchange Rules 1987 and relevant notifications issued by Bangladesh
Securities and Exchange Commission, 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 purposes of
our audit and made due verification thereof;
b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appeared from our examination of
those books;
c) The company’s consolidated Statement of Financial Position (Balance Sheet) and consolidated Statement of Profit or Loss and Other
Comprehensive Income (Profit & Loss Account) dealt with by this report are in agreement with the books of accounts and;
d) The expenditures incurred and payment made were for the purpose of the company’s business for the year.
Dhaka
October 28, 2019
M. J. Abedin & Co.
Chartered Accountants
Financial Statements-Consolidated | Annual Report 2018-19 | 85
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Financial Position
As at June 30, 2019
Notes
June 30, 2019
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Intangible Assets
Goodwill
Investment In Associates
Other Investment
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
4
5
6
7
8
9
10
11
12
13
14
15
Amount in Taka
June 30, 2018
32,394,686,712
30,524,692,707
1,280,695,416
546,691,213
30,749,850
5,757,808
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
35,949,930,818
34,056,667,212
1,334,921,698
546,691,213
-
5,329,379
6,321,316
13,264,161,542
5,924,031,678
726,127,262
3,334,958,905
2,309,503,747
35,681,115
323,364,536
610,494,299
49,214,092,360
29,588,317,284
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,131,853,004
2,504,203
17,144,333,029
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
Non-Controlling Interest
16
276,006,553
269,874,176
TOTAL EQUITY
Non-Current Liabilities
Long Term Borrowings-Net of Current Maturity
Liability for Gratuity and WPPF & Welfare Funds
Deferred Tax Liability
29,864,323,837
27,351,836,792
6,603,936,369
2,595,607,792
1,860,904,996
2,147,423,581
7,368,863,860
4,017,425,267
1,324,166,498
2,027,272,095
17
18
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.
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
12,745,832,154
9,272,501,280
1,616,670,549
1,091,809,722
590,317,150
7,235,215
167,298,238
49,214,092,360
19
20
21
22
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
Salman F Rahman
Vice Chairman
Dhaka
October 28, 2019
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2019
Net Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Share of Loss of Associates
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 Period
Total Comprehensive Income Attributable to:
Owners of the Company
Non-controlling interest
Notes
23
24
27
28
29
30
7
31
July 2018 -
June 2019
22,816,629,795
(12,196,286,770)
10,620,343,025
Amount in Taka
July 2017 -
June 2018
17,716,716,855
(9,430,737,431)
8,285,979,424
(5,554,169,458)
(4,259,811,440)
(752,944,182)
(4,801,225,276)
(618,675,127)
(3,641,136,313)
5,066,173,567
4,026,167,984
139,917,665
(1,029,762,542)
(29,325,720)
4,147,002,970
(200,937,234)
3,946,065,736
(905,662,782)
(803,760,846)
(101,901,936)
3,040,402,954
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
3,033,402,333
7,000,621
3,040,402,954
2,536,543,948
(3,889,647)
2,532,654,301
(1,852,559)
3,038,550,395
481,697
2,533,135,998
3,031,549,774
7,000,621
3,038,550,395
2,537,025,645
(3,889,647)
2,533,135,998
Earnings Per Share (EPS)
32
7.48
6.25
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 28, 2019
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Changes in Equity
For the Year Ended June 30, 2019
As at June 30, 2019 Amount in Taka
Share Capital
Share
Premium
Excess of
Issue Price
over Face
Value of GDRs
Capital
Reserve on
Merger
Revaluation
Surplus
Unrealized
Gain/
(Loss)
Retained
Earnings
Equity
attributable to
Owners of the
Company
Non-Con-
trolling
Interests
Total Equity
Balance as on July 01, 2018
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
27,081,962,616 269,874,176 27,351,836,792
Total Comprehensive Income:
Share Capital Beximco Pharma API Ltd.
Profit/(Loss) for the Period
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
3,033,402,333
3,033,402,333
7,000,621
3,040,402,954
-
(1,852,559)
-
(1,852,559)
-
(1,852,559)
100
100
(9,175,291)
9,175,291
-
-
(506,945,556)
(506,945,556)
(868,344)
(507,813,900)
-
-
-
-
(18,249,550)
-
-
(18,249,550)
(18,249,550)
Balance as on June 30, 2019
4,055,564,450 5,269,474,690
1,689,636,958
294,950,950 1,131,853,004
2,504,203
17,144,333,029
29,588,317,284 276,006,553 29,864,323,837
Net Asset Value (NAV) Per Share (Note-33) 72.96
As at June 30, 2018
Share Capital
Share
Premium
Excess of
Issue Price
over Face
Value of
GDRs
Capital
Reserve on
Merger
Revaluation
Surplus
Unreaized
Gain/
(Loss)
Retained
Earnings
Equity
attributable to
Owners of the
Company
Non-Con-
trolling
Interests
Total Equity
Balance as on July 01, 2017
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
- 25,072,425,900
Acquisition of Subsidiary
Total Comprehensive Income:
Profit/(Loss) for the Period
Other Comprehensive Income / (Loss)
Transactions with the Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
273,763,823
273,763,823
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,536,543,948
2,536,543,948
(3,889,647)
2,532,654,301
481,697
-
481,697
-
481,697
-
(506,945,556)
(506,945,556)
(506,945,556)
-
(10,382,600)
-
(20,543,373)
-
-
10,382,600
-
-
-
(20,543,373)
(20,543,373)
Balance as on June 30, 2018
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
27,081,962,616 269,874,176 27,351,836,792
Net Asset Value (NAV) Per Share (Note-33) 66.78
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Dhaka
October 28, 2019
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
88 | Annual Report 2018-19 | Financial Statements-Consolidated
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Cash Flows
For the Year ended June 30, 2019
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
Notes
July 2018-
June 2019
Amount in Taka
July 2017-
June 2018
22,463,550,299
17,195,399,333
(17,434,690,241)
(14,113,012,465)
5,028,860,058
(1,032,409,014)
36,457,527
(1,072,991,667)
3,082,386,868
(536,570,775)
54,928,425
(781,630,595)
1,819,113,923
Net Cash Generated from Operating Activities
35
2,959,916,904
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 in Short Term Borrowings
Share capital
Dividend Paid
Net Cash Generated from Financing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Effect of exchange rate changes on Cash and Cash Equivalents
Cash and Cash Equivalents at End of Year
Net Operating Cash Flow Per Share
The Notes are an integral part of the Financial Statements.
(4,416,446,385)
(4,951,352,340)
(128,619,282)
(106,921,036)
-
(2,125,186,000)
17,540,625
1,491,901
16,032,638
14,114,722
1,504,092
547,179,732
(4,510,000,503)
(6,620,660,830)
(1,412,334,115)
3,684,312,230
100
(505,351,881)
1,766,626,334
216,542,735
393,735,946
215,618
610,494,299
1,859,021,877
3,546,896,539
-
(502,757,959)
4,903,160,457
101,613,550
292,122,396
-
393,735,946
7.30
4.49
14
34
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 28, 2019
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Consolidated | Annual Report 2018-19 | 89
Beximco Pharmaceuticals Limited and its Subsidiaries
Notes to the Financial Statements
As at and for the year ended June 30, 2019
1. The Reporting Entity
1.1 About the Company
Beximco Pharmaceuticals Limited (BPL/ the Company) was incorporated as a public limited company in Bangladesh in 1976 and
commenced its manufacturing operation in 1980. It is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical
Ingredients (APIs). 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 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).
In 2018, BPL acquired 85.22% shares of Nuvista Pharma Limited – a non-listed pharmaceutical company in Bangladesh specializing in
hormones and steroid drugs and took over control of its management. 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. The manufacturing facilities of the Company are certified
by leading global regulatory authorities including United States Food and Drug Administration (USFDA).
1.2 The Subsidiaries
Nuvista Pharma Limited (NPL)
Nuvista Pharma, formerly Organon (Bangladesh) Ltd., was a subsidiary of Netherlands based Organon International. It was originally
incorporated as a private limited company. In 2006 the foreign holding of the company was sold out to Bangladeshi management and was
renamed as Nuvista Pharma Limited. The Company through amendments to its memorandum of association in 2011 converted it into a
public limited company. In April 2018, Beximco Pharmaceuticals Limited acquired majority shareholdings in Nuvista Pharma Limited (NPL)
and through this acquisition BPL has become the immediate and ultimate parent of the company.
Beximco Pharma API Limited
Beximco Pharma API Limited was formed as a private limited company in December 2017 with a paid up capital of Taka 20 million divided
into 2 million shares of Taka 10 each, fully held by BPL. The company intends to set up a facility at API Industrial Park to manufacture
Active Pharmaceutical Ingredients (APIs) for domestic and international markets. The company is still in the initial phase of establishment.
1.3 Nature of Business
BPL is engaged in manufacturing and marketing of generic pharmaceuticals formulation products covering a wide range of therapeutic
categories. It offers products in different dosage forms including Solid, Liquid, Cream and Ointment, Suppositories, Metered Dose Inhaler,
Dry Powder Inhaler, Nasal Spray, Sterile, Lyophilized Injectable, Large Volume Intravenous Fluids. Besides formulation products BPL also
manufactures Active Pharmaceutical Ingredients (APIs) and renders contract manufacturing services to other companies. Products of the
company are sold in domestic and international markets.
NPL 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.
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).
90 | Annual Report 2018-19 | Financial Statements-Consolidated
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. 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 Beximco Pharmaceutical Limited (BPL) and its subsidiaries Nuvista Pharma Limited (NPL) and Beximco Pharma API
Limited begins on July 1 and ends on June 30.
2.4 Comparative Information
Figures for earlier year have been re-arranged wherever considered necessary to ensure better comparability with the current year.
3. Significant Accounting Policies
3.1 Basis of Consolidation
The financial statements of the subsidiaries-Nuvista Pharma Limited and Beximco Pharma API Limited, have been consolidated with those
of Beximco Pharmaceuticals Limited in accordance with IFRS 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 10: Consolidated Financial Statements to consider
NPL as a subsidiary.
Beximco Pharma API Limited (BPAL) was formed with a paid up capital of Tk.20,000,000 divided into 2,000,000 shares of Tk.10 each, all
of which excepting 10 shares are held by Beximco Pharmaceuticals Ltd (BPL). Beximco Pharma API Ltd thus meets the conditions stated
in IFRS 10: Consolidated Financial Statements to consider it as a subsidiary.
Beximco Pharma API Limited (BPAL) is being consolidated for the first time in this financial statement since its date of incorporation.
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 Valuation of Goodwill
Goodwill has been determined in accordance with IFRS 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.
3.5 Investment in Associates
Investment in Associates has been accounted for using the Equity method as per IAS 28: Investment in Associates and Joint Ventures
Financial Statements-Consolidated | Annual Report 2018-19 | 91
4. Property Plant and Equipment
As on June 30, 2019
Amount in Taka
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Cost
Opening July 01, 2018
Additions
Transferred in & Capitalized
Disposal during the Year
Cost at June 30, 2019
Accumulated Depreciation
Opening at July 01, 2018
Depreciation Charged
Fair Value Depreciation
Adjustment for Assets disposed off
4,067,829,596
-
-
-
7,108,792,076
8,283,847
703,230,227
-
13,361,895,168
1,512,921,753
905,532,878
(21,845,168)
291,911,813
21,230,703
1,252,298
-
1,070,601,927
96,447,490
-
(22,146,945)
567,093,579
26,888,067
1,096,397
(102,600)
26,468,124,159
1,665,771,860
1,611,111,800
(44,094,713)
4,067,829,596 7,820,306,150 15,758,504,631
314,394,814 1,144,902,472
594,975,443
29,700,913,106
-
-
-
-
1,826,616,117
159,884,245
2,363,364
-
5,667,379,591
537,243,713
9,652,060
(8,555,677)
126,528,325
16,367,039
-
-
585,682,478
107,546,037
-
(19,354,938)
350,776,245
35,312,845
-
(81,519)
8,556,982,756
856,353,879
12,015,424
(27,992,134)
Accumulated Depreciation at June 30, 2019
- 1,988,863,726
6,205,719,687
142,895,364
673,873,577
386,007,571
9,397,359,925
Net Book Value June 30, 2019
4,067,829,596 5,831,442,424
9,552,784,944
171,499,450
471,028,895
208,967,872
20,303,553,181
Capital Work in Progress
Carrying Value as on June 30, 2019
Carrying Value as on June 30, 2018
5. Intangible Assets
Particulars
Cost
As on July 01, 2018
Addition During the year
As on June 30, 2019
Amortization
As on July 01, 2018
Amortized During the year
As on June 30, 2019
Balance as on June 30, 2019
Balance as on June 30, 2018
13,753,114,031
34,056,667,212
30,524,692,707
Product
development,
Licensing and
Marketing
Rights
ERP Project
Trade Name &
Trade Marks
Total
1,210,988,617
108,963,430
147,447,850
19,655,852
54,000,000
-
1,412,436,467
128,619,282
1,319,952,047
167,103,702
54,000,000
1,541,055,749
131,741,051
72,233,000
203,974,051
-
-
-
-
2,160,000
131,741,051
74,393,000
2,160,000
206,134,051
1,115,977,996
167,103,702
51,840,000
1,334,921,698
1,079,247,566
147,447,850
54,000,000
1,280,695,416
92 | Annual Report 2018-19 | Financial Statements-Consolidated
6. Goodwil
This is carried forward from the previous year and relates to acquisition of Nuvista Pharma Limited (Note 3.4). There has been no indication of impairment
of goodwill during the period.
7. Investment in Associates
Balance as on June 30, 2018
Adjustment during the Year
Less Share of accumulated loss
Balance as on June 30, 2019
As at June 30,
2019
30,749,850
(1,424,130)
29,325,720
(29,325,720)
-
a. Beximco Pharmaceuticals Ltd. received 1,500,000 Ordinary Shares of Malaysian Ringgit (RM) 1 each representing 30% of the equity share of BioCare
Manufacturing Sdn Bhd (“BioCare”), Malaysia. BPL provided full technical support to set up a manufacturing facility in Seri Iskandar Pharmaceutical Park,
Perak, Malaysia and to produce specialized pharmaceutical products. BioCare is considered to be an associate of BPL as per IAS 28: Investment in
Associates and Joint Ventures.
b. Accounting year of BioCare ends on December 31 which is different from the date of preparation of this Consolidated Statement of Financial Positions.
BioCare has provided unaudited interim financial statements as of June 30, 2019. Total accumulated loss as on that date stands at RM 7,686,821 equivalent
to BDT 155,504,389. An amount of Tk 29,325,720 being part of accumulated loss of BioCare has been accounted for in this consolidated financial statement.
Beximco Pharma has not recognized an amount of Tk. 17,325,597 being remaining of the 30% share of accumulated loss of the BioCare following IAS 28:
Investment in Associates and Joint Ventures as the company has no obligation for any liability beyond the value of its investment in associates.
c. The unrealized exchange fluctuation gain accounted for in previous financial statements has been reversed to arrive at cost value of investment.
8. Other Investments
a. Investment Datails (Taka)
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
b. Number of Shares:
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
Amount in Taka
Balance
July 01, 2018
Addition/
Adjustment
Balance
June 30, 2019
Unrealised Gain/(Loss)
4,188,358
1,569,450
5,757,808
(428,429)
-
(428,429)
3,759,929
1,569,450
5,329,379
Balance
July 01, 2018
Addition/
Adjustment
Balance
June 30, 2019
Stock Dividend
159,861
571,182
7,993
-
167,854
571,182
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 2018-2019 was Tk. 22.40 (2017-2018: Tk.26.20). The amount of Tk. 428,429 represents fair value loss.
d. Shares of Central Depository Bangladesh Ltd. are not traded .
Financial Statements-Consolidated | Annual Report 2018-19 | 93
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
Amount in Taka
June 30, 2019
June 30, 2018
1,255,181,983
455,530,899
864,137,218
262,723,223
2,710,825,646
2,183,474,721
1,098,348,379
971,119,763
44,838,125
85,135,960
12,004,065
27,979,741
82,714,044
324,655
262,166,621
666,374,316
5,924,031,678
5,058,847,681
579,021,056
13,100,977
321,244
783,091
545,032,936
10,936,969
330,437
614,603
132,797,157
106,477,464
103,737
518,687
726,127,262
663,911,096
11. Accounts Receivable
This is net off provision for bad debts of Tk. 2,894,595. Accounts receivable includes an amount of Tk. 771,731,426 (equivalent USD
9,214,704 as on June 30, 2019 (June 30, 2018: Tk. 596,463,606, USD 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. 2,335,457,132 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. 2,348,527,632 on May 31, 2019.
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.
94 | Annual Report 2018-19 | Financial Statements-Consolidated
12. Loans, Advances and Deposits
This is unsecured, considered good and consists of as follows :
Amount in Taka
June 30, 2019
June 30, 2018
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
159,119,478
329,321,836
6,320,466
67,972,220
10,821,850
224,723,000
255,058,852
37,773,704
155,890,739
13,420,366
199,755,875
592,000,065
163,840,275
35,318,373
58,166,648
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
2,309,503,747
2,094,229,902
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 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.
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
235,292,449
192,159,614
338,805,413
36,396,437
610,494,299
167,102,855
34,473,477
393,735,946
Financial Statements-Consolidated | Annual Report 2018-19 | 95
15. Issued Share Capital
A. Authorized :
1,000,000,000 Ordinary Shares of Tk. 10/- each, (500,000,000 shares in June 2018 )
50,000,000 fully convertible 5% Preference Shares of Tk. 100/- each,(41,000,000 shares in June
2018 )
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
June 30, 2019
June 30, 2018
10,000,000,000
5,000,000,000
5,000,000,000
4,100,000,000
15,000,000,000
9,100,000,000
517,757,500
517,757,500
3,165,382,980
3,165,382,980
59,512,500
312,911,470
59,512,500
312,911,470
4,055,564,450
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, 2019
June 30, 2018
No. of shares
% of Share
Capital
No. of shares
% of Share
Capital
8,235,353
8,254,632
37,019,789
2.03
2.04
9.13
8,235,353
8,254,632
36,999,784
53,509,774
13.19
53,489,769
90,943,627
60,060,586
136,573,957
64,468,501
352,046,671
405,556,445
22.42
14.81
33.68
15.90
86.81
100.00
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
16.53
86.81
100.00
269,874,176
273,763,823
7,000,621
(3,889,647)
(868,344)
100
-
-
276,006,553
269,874,176
Sponsors:
A S F Rahman
Salman F Rahman
Other Director and Associates
Public Issue:
GDRs- AIM of London Stock Exchange
Foreign Investors’ Shareholdings ( DSE/CSE)
Institutions (ICB, ICB Investors Accounts & Others)
Individual Shareholders
16. Non-controlling Interest
Non-controlling Interest as on June 30, 2019:
Non-controlling Interest as on June 30, 2018 (NPL)
Proportionate profit/loss (NPL)
Less Cash Dividend (NPL)
Share Capital Beximco Pharma API Ltd.(API)
96 | Annual Report 2018-19 | Financial Statements-Consolidated
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
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
AB Bank
Liability for UPAS Letter of credit
Dhaka Bank Ltd
The City Bank Ltd.
Mutual Trust Bank Ltd.
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
Amount in Taka
June 30, 2019
June 30, 2018
1,974,611,879
2,809,556,317
247,375,215
280,596,178
330,410,281
759,326,232
43,210,417
167,946,540
2,595,607,792
4,017,425,267
217,547,491
260,426,903
296,239,401
336,141,714
513,786,892
596,568,617
(100,645,414)
(114,965,180)
413,141,478
481,603,437
165,766,263
201,007,259
247,375,215
280,596,178
413,141,478
481,603,437
1,040,022,968
759,708,531
820,882,028
564,457,967
1,860,904,996
1,324,166,498
5,336,101,392
3,897,681,180
2,491,112,625
-
873,810,482
1,064,417,066
571,476,781
617,381,902
-
-
2,507,475
18,839,012
9,272,501,280
5,600,826,635
860,104,664
852,470,599
165,766,263
201,007,259
462,991,847
400,341,697
127,807,775
115,170,190
1,616,670,549
1,568,989,745
Financial Statements-Consolidated | Annual Report 2018-19 | 97
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
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
98 | Annual Report 2018-19 | Financial Statements-Consolidated
Amount in Taka
June 30, 2019
June 30, 2018
573,345,769
621,334,927
403,722,991
188,151,262
23,952,936
43,576,730
90,788,026
138,649,988
1,091,809,722
991,712,907
389,379,916
251,493,606
200,937,234
166,983,289
590,317,150
418,476,895
July 2018-
June 2019
July 2017-
June 2018
20,300,942,074
16,237,454,376
2,502,632,517
1,476,977,889
13,055,204
2,284,590
22,816,629,795
17,716,716,855
262,723,223
155,553,707
9,840,645,571
7,236,638,335
3,165,298,448
2,554,986,926
13,268,667,242
9,947,178,968
(455,530,899)
(262,723,223)
12,813,136,343
9,684,455,745
864,137,218
803,975,989
13,677,273,561
10,488,431,734
(225,804,808)
(193,557,085)
(1,255,181,983)
(864,137,218)
12,196,286,770
9,430,737,431
3,182,574,225
1,920,966,484
10,512,083,496
8,498,246,076
(3,854,012,150)
(3,182,574,225)
9,840,645,571
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
Security Expenses
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
Security Expenses
Other Expenses
Amount in Taka
July 2018-
June 2019
July 2017-
June 2018
1,188,378,116
904,509,549
357,815,843
216,587,905
31,563,027
22,801,790
2,340,256
39,992
12,214,261
13,607,099
2,406,063
4,508,685
196,960
13,724,885
9,764,755
1,821,636
284,160,790
222,652,875
30,586,880
22,091,508
9,563,197
9,211,158
211,045,966
207,961,293
185,846,861
144,124,432
5,847,370
4,961,417
26,970,395
26,780,147
776,720,982
720,995,025
19,223,665
15,870,697
6,967,685
6,422,209
3,165,298,448
2,554,986,926
422,172,373
314,685,553
21,596,203
52,754,516
11,157,571
33,292,606
7,452,594
9,623,113
2,090,000
1,294,203
420,402
14,475
8,389,087
15,238,998
10,931,928
2,876,555
27,156,197
72,068
12,734,287
29,897,226
1,108,950
9,011,269
73,659,561
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
9,619,633
68,042,059
752,944,182
618,675,127
Financial Statements-Consolidated | Annual Report 2018-19 | 99
28. 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
Security Expenses
Bad Debts
Other Expenses
29. Other Income
Interest Income
Dividend Income
Royalty
Technology Transfer Income
Income From sale of Product Dossier
Distribution Commission
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)*
Sale of Miscellaneous Item
Profit/(Loss) on Sale of Fixed Assets
July 2018-
June 2019
July 2017-
June 2018
1,746,110,649
1,262,270,771
86,475,238
12,924,576
78,267,019
8,958,993
520,316,148
440,145,550
54,522,468
36,718,700
31,583,013
9,779,736
53,419,672
40,877,932
20,542,289
9,364,325
49,463,151
49,081,984
105,829,155
100,398,454
32,048,113
32,264,432
286,686,387
263,875,222
511,507,793
428,361,958
11,394,312
10,893,311
207,829,781
128,243,083
87,161,934
55,008,186
273,539,867
120,383,504
260,673,378
234,392,430
315,948,856
179,142,387
136,144,095
96,854,086
18,179,874
15,870,697
2,894,595
3,493,457
-
12,520,028
4,801,225,276
3,641,136,313
36,457,527
54,928,425
1,491,901
95,941,689
-
-
-
23,646,180
1,504,092
6,093,728
18,145,620
4,959,000
4,266,424
-
(20,010,341)
(42,662,242)
952,663
49,772
1,438,046
(3,526,939)
139,917,665
43,757,880
* Exchange rate fluctuation gains has been netted off with the Exchange rate fluctuation losses. An exchange loss of Tk. 25,559,859 has
been accounted for the translation of outstanding foreign currency loan from ODDO BHF Aktiengesellshaft, Frankfurt, Germany translated
at the exchange rate prevailing on the financial position date.
100 | Annual Report 2018-19 | Financial Statements-Consolidated
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
31. Income Tax Expenses
This consists of as follows :
(a) Current Tax
(b) Deferred Tax Expense
32. Earnings Per Share (EPS)
(a) Earnings attributable to the Owners of the Company
(b) Weighted average number of Shares outstanding during the year
July 2018-
June 2019
Amount in Taka
July 2017-
June 2018
797,139,744
378,949,336
27,718,969
(10,909,700)
60,109,947
128,075,983
16,717,899
73,787,122
85,080,425
13,376,260
1,029,762,542
540,283,443
803,760,846
792,620,241
101,901,936
36,059,589
905,662,782
828,679,830
3,033,402,333
2,536,543,948
405,556,445
405,556,445
Earnings Per Share (EPS)
7.48
6.25
33. Net Asset Value (NAV) Per Share
June 30, 2019
June 30, 2018
Total Assets
Less Total Liabilities
Less Non-controlling Interest
Equity Attributable to the Owners of the Company
Number of Ordinary 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 Ordinary Shares at Financial Position date
Net Operating Cash Flow Per Share (NOCFPS)
49,214,092,360
43,738,886,412
(19,349,768,523)
(16,387,049,620)
(276,006,553)
(269,874,176)
29,588,317,284
27,081,962,616
405,556,445
405,556,445
72.96
66.78
July 2018-
June 2019
July 2017-
June 2018
2,959,916,904
1,819,113,923
405,556,445
405,556,445
7.30
4.49
Financial Statements-Consolidated | Annual Report 2018-19 | 101
35. Reconciliation of Net Profit with Cash Flows from Operating Activities
Amount in Taka
July 2018-
June 2019
July 2017-
June 2018
Profit after Tax
3,040,402,954
2,532,654,301
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 Foreign Currency Bank Loan
Deferred Tax
(b) Non-operating Items
Dividend Income
Profit on sale of Fixed Assets
Effect of exchange rate changes on Cash and Cash Equivalents
Share of Loss of Associates
(c) Changes in working Capital
(Increase)/Decrease in Inventories
(Increase)/Decrease in Spares & Supplies
(Increase)/Decrease in Accounts Receivable
(Increase)/Decrease in Advance Income Tax
(Increase)/Decrease in Loans, Advances & Deposits
(Increase)/Decrease in Other Non-current Assets
Increase/(Decrease) in Creditors and Other Payables
Increase/(Decrease) in Accrued Expenses
Increase/(Decrease) in Income Tax Payable
1,606,962,596
970,984,130
868,369,303
801,715,192
74,393,000
536,738,498
44,193,967
57,650,531
-
(18,145,620)
25,559,859
101,901,936
49,510,471
36,059,589
26,190,223
(1,481,833)
(1,438,046)
(215,618)
29,325,720
2,022,847
(1,504,092)
3,526,939
-
-
(1,713,638,869)
(1,686,547,355)
(865,183,997)
(1,192,022,631)
(62,216,166)
(18,678,378)
(573,449,512)
(566,040,570)
(3,112,607)
-
(215,273,845)
(365,849,712)
(221,598)
-
100,096,815
403,748,186
171,840,255
(266,118,214)
41,306,104
10,989,646
Net cash Generated from Operating Activities
2,959,916,904
1,819,113,923
102 | Annual Report 2018-19 | Financial Statements-Consolidated
36. Related Party Disclosures
Amount in Taka
a) Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties
(i) I & I Services Ltd.
Nature of Transactions
Value of Transaction
Balance at year end
Local Delivery
Distribution Commission
22,217,416,177
260,673,378
2,335,457,132
(ii) Bangladesh Export Import Co. Ltd
Short Term Investment & Interest there on
16,032,638
323,364,536
b. Related party transaction between the Company and its subsidiaries have been eliminated in the consolidation.
c. The Companies are subject to common control from same source.
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Dhaka
October 28, 2019
Financial Statements-Consolidated | Annual Report 2018-19 | 103
Financial Statements-Beximco Pharma Stand-alone
Beximco Pharmaceuticals Limited
Audited Financial Statements
For the Year Ended June 30, 2019
Independent Auditor’s Report
To the Shareholders of Beximco Pharmaceuticals Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Beximco Pharmaceuticals Limited (the “Company”), which comprise the Statement of Financial
Position as at 30 June 2019 and 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 notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements of the Company give a true and fair view of the financial position of the Company as at
30 June 2019, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting
Standards (IFRSs), the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together
with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of
the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Risk
Our response to the risk
Valuation of Property, Plant and Equipment (PPE)
The carrying value of the PPE was Tk. 32,209,440,044 as at
30 June, 2019.
Our audit included the following procedure:
Expenditures are capitalized if they create new assets or
enhance the existing assets, and expensed if they relate to repair
or maintenance of the assets. Classification of the expenditures
involves judgment. The useful lives of PPE items are based on
management’s estimates regarding the period during which the
assets or its significant components will be used. The estimates
are based on historical experience and market practice and
take into consideration the physical condition of the assets.
• We assessed whether the accounting policies in relation to the
capitalization of expenditures are in compliance with IFRS and found
them to be consistent.
• We inspected a sample of invoices and L/C documents to determine
whether the classification between capital and revenue expenditure
was appropriate.
•W e evaluated whether the useful lives determined and applied by the
management were in line with historical experience and the market
practice.
The valuation of PPE was identified as a key audit matter due
to the significance of this balance to the financial statements
and that there is significant measurement uncertainty involved
in this valuation.
We checked whether the depreciation of PPE items was commenced
timely, by comparing the date of the reclassification from capital work
in progress to ready for use, with the date of the act of completion of
the work.
See Note No. 4(a) to the financial statements
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 105
Risk
Our Response to the Risk
Valuation of Inventory
The inventory of Tk. 5,573,549,171 as at 30 June, 2019 was held
at different locations across the country.
Inventories are carried at the lower of cost and net realizable
value. As a result, the management apply judgment in determining
the appropriate values for slow-moving or obsolete items.
Since the value of Inventory is significant to the Financial
Statements and there is significant measurement uncertainty
involved in this valuation, the valuation of inventory was
significant to our audit.
See Note No. 9 to the financial statements.
We verified the appropriateness of management’s assumptions
applied in calculating the value of the inventory by:
• Evaluating the design and implementation of key inventory
controls.
• Attending inventory counts on sample basis and reconciling the
count results to the inventory listing to test the completeness of
data.
• Reviewing the requirement of inventory provisioning and action
there upon by the management.
• Comparing the net realizable value obtained through a detailed
review of sales subsequent to the year-end, to the cost price of a
sample of inventories.
Contingent Liabilities
The Company is subject to a number of claims and litigations. The
amounts of claims are significant and estimates of the amounts
of provisions or contingent liabilities are subject to management
judgement. These claims and regulatory matters are uncertain in
timing of resolutions and amount or consequences.
These claims and litigation matters were a key audit matter due
to the amounts involved, potential consequences and the inherent
difficulty in assessing the outcome. The assessment of whether
or not a liability should be recognized involves judgement from
management.
We obtained an understanding, evaluated the design and tested
the operational effectiveness of the company’s key controls over
the legal provision and contingency processes.
We enquired to those charged with governance to obtain their
view on the status of the litigations.
We enquired of the company’s internal legal counsel for the
litigation and inspected internal notes and reports. We also
reviewed formal confirmations in this regard from external
counsel.
We also validated the completeness and appropriateness of the
related disclosures in Note No. 51 of the financial statements.
Related party transactions
The Company has related party transactions with its subsidiaries
and other related parties as described in Note No. 40 of the
financial statements.
We focused on identification of related parties and disclosure of
related party transactions in accordance with relevant accounting
standards.
Our audit procedures amongst others included the following:
• Evaluated the design and tested the operating effectiveness
of controls over identification and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and tested
material accounts balances.
• Evaluated the disclosures in the financial statements in
compliance with IAS 24.
Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the
financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s
report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
106 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes
available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on such work we perform, we conclude that there is a material misstatement of this other information, we are required to communicate
the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Financial Statements and
Internal Controls
Management is responsible for the preparation and fair presentation of the financial statements of the Company in accordance with IFRSs,
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.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends
to liquidate the Company to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
•
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit 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 internal controls of the Company.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as
a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 107
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit
of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, The Securities and Exchange Rules 1987 and relevant notifications issued by Bangladesh
Securities and Exchange Commission, 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 purposes of
our audit and made due verification thereof;
b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appeared from our examination of
those books;
c) The company’s Statement of Financial Position (Balance sheet) and Statement of Profit or Loss and Other Comprehensive Income (Profit &
Loss Account) dealt with by this report are in agreement with the books of accounts and;
d) The expenditures incurred and payment made were for the purpose of the company’s business for the year.
Dhaka
October 28, 2019
M. J. Abedin & Co.
Chartered Accountants
108 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2019
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Intangible Assets
Investment in Subsidiaries
Investment In Associates
Other Investment
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, 2019
June 30, 2018
Amount in Taka
4 (a)
5
6
7
8
9
10
11
12
13
14
15
16
4(b)
17
18
19
20
21
22
23
24
34,999,402,741
31,332,493,872
32,209,440,044
610,121,698
2,145,185,900
29,325,720
5,329,379
28,645,104,798
525,695,416
2,125,186,000
30,749,850
5,757,808
12,793,492,489
10,832,521,567
5,573,549,171
715,341,316
3,325,890,597
2,273,040,821
323,364,536
582,306,048
4,665,449,461
654,781,270
2,736,944,147
2,066,840,961
339,397,174
369,108,554
47,792,895,230
42,165,015,439
29,600,843,240
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,131,853,004
2,504,203
17,156,858,985
6,296,204,472
2,544,732,500
1,748,900,794
2,002,571,178
11,895,847,518
8,701,024,499
1,487,254,413
1,037,089,244
496,178,291
7,002,833
167,298,238
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
47,792,895,230
42,165,015,439
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 28, 2019
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2019
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
Notes
July 2018 -
June 2019
Amount in Taka
July 2017 -
June 2018
25
26
29
30
31
32
21,156,331,039
(11,365,929,686)
9,790,401,353
17,380,728,001
(9,255,504,681)
8,125,223,320
(4,991,627,668)
(4,143,623,455)
(663,362,904)
(595,185,629)
(4,328,264,764)
(3,548,437,826)
4,798,773,685
3,981,599,865
245,184,534
(938,074,846)
4,105,883,373
64,973,584
(512,099,369)
3,534,474,080
Contribution to WPPF & Welfare Funds
33
(195,518,256)
(168,308,290)
Profit Before Tax
3,910,365,117
3,366,165,790
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)
The Notes are an integral part of the Financial Statements.
34
35
36
(886,864,143)
(792,365,900)
(94,498,243)
(807,194,527)
(790,580,483)
(16,614,044)
3,023,500,974
2,558,971,263
(1,852,559)
481,697
3,021,648,415
2,559,452,960
7.46
6.31
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 28, 2019
110 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited
Statement of Changes in Equity
For the Year ended June 30, 2019
Share
Capital
Share
Premium
Excess of Issue
Price over Face
Value of GDRs
Capital
Reserve on
Merger
Revaluation
Surplus
Unrealized
Gain/
(Loss)
Retained
Earnings
Amount in Taka
Total
Balance as on July 01, 2018
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
Total Comprehensive Income for
the year:
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Adjustment for the Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(9,175,291)
-
(18,249,550)
-
-
-
(1,852,559)
3,023,500,974
-
3,023,500,974
(1,852,559)
-
-
-
(506,945,556)
(506,945,556)
9,175,291
-
-
(18,249,550)
Balance as on June 30 ,2019
4,055,564,450 5,269,474,690
1,689,636,958 294,950,950
1,131,853,004
2,504,203
17,156,858,985 29,600,843,240
Net Asset Value (NAV) Per Share (Note-37) 72.99
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)
Retained
Earnings
Total
Balance as on July 01, 2017
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
Total Comprehensive Income for
the year:
Profit for the Year
Other Comprehensive Income
Transactions with the Shareholders:
Cash Dividend
Adjustment for the Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
481,697
2,558,971,263
-
2,558,971,263
481,697
-
(506,945,556)
(506,945,556)
(10,382,600)
(20,543,373)
-
-
10,382,600
-
-
(20,543,373)
Balance as on June 30, 2018
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
Net Asset Value (NAV) Per Share (Note-37) 66.83
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Dhaka
October 28, 2019
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 111
Beximco Pharmaceuticals Limited
Statement of Cash Flows
For the Year ended June 30, 2019
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
39
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
Effect of exchange rate changes on Cash and Cash Equivalents
Cash and Cash Equivalents at End of Year
Net Operating Cash Flow Per Share
14
38
Notes
July 2018 -
June 2019
Amount in Taka
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
20,798,619,790
(16,112,060,651)
4,686,559,139
(938,074,846)
36,457,527
(1,058,484,114)
2,726,457,706
(4,337,220,303)
(128,619,282)
(19,999,900)
17,267,628
1,491,901
16,032,638
(4,451,047,318)
(1,296,871,228)
3,738,926,253
(504,483,537)
1,937,571,488
212,981,876
369,108,554
215,618
582,306,048
6.72
4.56
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2019 and signed for and on behalf of the Board :
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Dhaka
October 28, 2019
112 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2019
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 and commenced
its manufacturing operation in 1980. It is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs).
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 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). In 2018, BPL acquired 85.22%
shares of Nuvista Pharma Limited – a non-listed pharmaceutical company in Bangladesh specializing in hormones and steroid drugs and took
over control of its management. 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. The manufacturing facilities of the Company are certified by leading
global regulatory authorities including United States Food and Drug Administration (USFDA).
1.2. Nature of Business
The company is engaged in manufacturing and marketing of generic pharmaceuticals formulation products covering a wide range of
therapeutic categories. It offers products in different dosage forms including Solid, Liquid, Cream and Ointment, Suppositories, Metered Dose
Inhaler, Dry Powder Inhaler, Nasal Spray, Sterile, Lyophilized Injectable, Large Volume Intravenous Fluids. Besides formulation products BPL
also manufactures Active Pharmaceutical Ingredients (APIs) and renders contract manufacturing services to other companies. Products of the
company are sold in domestic and international markets.
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).
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, 2019;
(b) a Statement of Profit or Loss and Other Comprehensive Income for the year ended June 30, 2019;
(c) a Statement of Changes in Equity for the year ended June 30, 2019;
(d) a Statement of Cash Flows for the year ended June 30, 2019; 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, 2018 to June 30, 2019. The last audited financial statements were
prepared for the year ending June 30, 2018. Figures for earlier year have been re-arranged wherever considered necessary to ensure better
comparability with the current year.
2.5. Authorization for issue
The financial statements have been authorized for issue by the Board of Directors on October 28, 2019.
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 113
2.6. Functional and Presentation Currency
The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the company’s functional currency. All financial
information presented has been rounded off to the nearest Taka except where indicated otherwise.
2.7. Use of Estimates and Judgments
The preparation of financial statements in conformity with the IFRSs including IASs require management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and for
contingent assets and liabilities that require disclosure, during and at the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision of
accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
In particular, the key areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant
effect on the amounts recognized in the financial statements include depreciation, inventory valuation accrued expenses, others payable,
capitalization of assets 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 from Contracts with Customers
In compliance with the requirements of IFRS 15: Revenue from Contracts with Customers, 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 sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances, trade
discounts, rebates and Value Added Tax (VAT).
3.2. Property, Plant and Equipment (PP&E)
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 amortize 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 software for internal use are capitalized as intangible fixed assets where the software supports a significant business system and
114 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
the expenditure leads to the creation of a durable asset. Also, the research and development expenditures that are definite to yield benefit to
the company are capitalized.
3.4. Leases
A new Standard IFRS 16: Leases, has been made effective for the reporting period beginning on or after 1 January 2019. The new standard has
introduced a single on-balance sheet lease accounting model for leases and replaces the previously adopted IAS 17: Leases.
The Company has been consistently recording its underlying assets acquired under lease arrangement as Assets and the corresponding
obligation as Liabilities in the financial statements. Lease payments made are apportioned between the finance expenses and the reduction
of outstanding lease liability which are in compliance with IFRS 16, excepting the classification of the leased assets as “Right-of-use assets”
in the Statement of Financial Position.
The Company has not early adopted IFRS 16 in preparing the financial statements and intends to do so when it becomes effective for the
Company. This however, has no material impact on the reported financial statements.
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
3.6.1. 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.
3.6.2. 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.
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 115
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.
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%. However, profit generated from export is subject to
a reduced 12.5% tax. Additionally certain other incomes are also liable to a lower rates which can be found in Note: 34
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). In BPL’s case deferred tax arises due to the
difference in the carrying amount and the tax base value of the Property, Plant & Equipment and Gratuity provisions.
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. Other Income
Dividend
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.
Export Incentives
Cash Incentives for export are recognized when all conditions as laid done in the relevant incentive scheme including receipt of export
remittances are satisfied and the right to claim the incentives are established
Royalty
Royalty income is accounted for on accrual basis on fulfillment of the terms laid in the agreement between the contracting parties giving BPL
the right to claim the Royalty.
Toll Income
Toll income is recognized when services are delivered and there remains no unfulfilled obligation in connection with the service.
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 excepting those that qualifies for capitalization 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
116 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
of employee benefits is charged off as revenue expenditure in the period to which the contributions relate. The company’s employee benefits
include the following:
3.12.1. 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. Employees contribute 10% of their basic salary
to the provident along with the Company that makes an 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.
3.12.2. 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.
3.12.3. 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.
3.12.4. 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.
3.12.5. 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.
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 117
4 (a). Property, Plant and Equipment
As on June 30, 2019
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Amount in Taka
Total
Cost
At July 01, 2018
Additions
Transferred in & Capitalized
Disposal during the Year
3,343,741,442
-
-
-
6,794,566,920
-
703,230,227
-
12,154,522,473
1,465,749,248
905,532,878
(21,845,168)
247,566,170
18,622,458
1,252,298
-
926,148,671
88,962,490
-
(16,485,538)
542,239,692
25,435,247
1,096,395
-
24,008,785,368
1,598,769,443
1,611,111,798
(38,330,706)
Cost at June 30, 2019
3,343,741,442
7,497,797,147 14,503,959,431
267,440,926
998,625,623
568,771,334
27,180,335,903
Accumulated Depreciation
At July 01, 2018
Depreciation Charged
Adjustment for Assets disposed off
Accumulated Depreciation at June
30, 2019
-
-
-
1,780,559,564
153,597,656
-
5,238,747,927
473,926,803
(8,555,677)
104,536,829
14,302,934
-
503,064,602
84,090,016
(13,851,547)
334,366,427
31,044,166
-
7,961,275,349
756,961,575
(22,407,224)
-
1,934,157,220
5,704,119,053
118,839,763
573,303,071
365,410,593
8,695,829,700
Net Book Value June 30, 2019
3,343,741,442
5,563,639,927
8,799,840,378
148,601,163
425,322,552
203,360,741
18,484,506,203
Capital Work in Progress 13,724,933,841
Carrying Value as on June 30, 2019 32,209,440,044
Assets include leasehold assets of Tk. 1,331,967,914 at cost and Tk. 932,076,886 at carrying value.
As on June 30, 2018
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
118 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
Capital Work in Progress is arrived at as follows :
June 30, 2019
Opening Balance
Addition during the year
Transferred & Capitalized
Building and Other Constructions
Plant & Machinery
Furniture & Fixture
Office Equipment
12,597,594,779
2,738,450,860
15,336,045,639
(1,611,111,798)
(703,230,227)
(905,532,878)
(1,252,298)
(1,096,395)
Amount in Taka
June 30, 2018
8,012,063,489
4,585,531,290
12,597,594,779
-
-
-
Closing balance at end of year
13,724,933,841
12,597,594,779
4 (b). Revaluation Surplus
S.F. Ahmed & Co, Chartered Accountants and Valuers revalued the land, building and plant & machinery of the Company as of December
31, 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
1,159,277,845
1,190,203,818
(9,175,291)
(18,249,550)
(10,382,600)
(20,543,373)
1,131,853,004
1,159,277,845
5. Intangible Assets
Particulars
Cost
As on July 01, 2018
Addition During the year
As on June 30, 2019
Amortization
As on July 01, 2018
Amortized During the year
As on June 30, 2019
Balance as on June 30, 2019
Balance as on June 30, 2018
Product development, Licensing
and Marketing Rights
ERP Project
Total
509,988,617
108,963,430
618,952,047
131,741,051
44,193,000
175,934,051
443,017,996
378,247,566
147,447,850
19,655,852
167,103,702
-
-
-
167,103,702
147,447,850
657,436,467
128,619,282
786,055,749
131,741,051
44,193,000
175,934,051
610,121,698
525,695,416
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 119
6. Investment in Subsidiaries
Nuvista Pharma Ltd.
Beximco Pharma API Limited
June 30, 2019
2,125,186,000
19,999,900
2,145,185,900
Amount In Taka
June 30, 2018
2,125,186,000
-
2,125,186,000
(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. 31,336,000 paid as share transfer fee to the Registrar of Joint Stock Companies and Firms.
(b) Beximco Pharma API Limited (API) was formed with a paid up capital of Tk. 20,000,000 divided into 2,000,000 shares of Tk. 10 each,
all of which excepting 10 shares are held by Beximco Pharmaceuticals Ltd (BPL). To comply with the regulatory requirement a nominal 10
shares has been issued to an individual.
(c) Investment in subsidiaries has been accounted for using cost method as per IAS 27.10(a): Separate Financial Statements, in preparing
financial statements of the company.
7. Investment in Associates
BioCare Manufacturing SDN.BHD. , Malaysia
Balance
July 01, 2018
30,749,850
Adjustment during
the Year
(1,424,130)
Balance
June 30, 2019
29,325,720
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. was 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. BioCare is considered to be an associate of BPL as per IAS 28: Investment in Associates and
Joint Ventures. The Company adopted Cost method for the investment as per IAS 27: Separate Financial Statements and therefore unrealized
exchange fluctuation gain accounted for in previous financial statements has been reversed to arrive at cost value.
8. Other Investments
(a) Investment Details ( Taka):
(i) Bangladesh Export Import Co. Ltd. (Note C )
(ii) Central Depository Bangladesh Ltd. (CDBL)
(b) Number of Shares:
(i) Bangladesh Export Import Co. Ltd.
(ii) Central Depository Bangladesh Ltd. (CDBL)
Balance
July 01, 2018
Addition/ Adjustment
Unrealised Gain/
(Loss)
4,188,358
1,569,450
5,757,808
(428,429)
-
(428,429)
Balance
July 01, 2018
Addition/ Adjustment
Stock Dividend
159,861
571,182
7,993
-
Balance
June 30, 2019
3,759,929
1,569,450
5,329,379
Balance
June 30, 2019
167,854
571,182
(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 the last working day of the year 2018-2019 was Tk. 22.40 (2017-2018: Tk.26.20). The amount of
Tk. 428,429 represents fair value loss.
(d) Shares of Central Depository Bangladesh Ltd.(CDBL) are not traded.
120 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
9. Inventories
Amount in Taka
This consists of as follows :
June 30, 2019
June 30, 2018
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
Literature & Promotional Materials
1,155,804,007
420,135,832
2,590,103,665
1,072,840,831
27,356,035
85,135,960
12,004,065
210,168,776
5,573,549,171
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
569,443,182
13,100,977
132,797,157
715,341,316
537,366,837
10,936,969
106,477,464
654,781,270
11. Accounts Receivable
This is net of provision for bad debts Tk. 2,193,977. Accounts receivable includes an amount of Tk. 771,731,426 (equivalent USD 9,214,704
as on June 30, 2019 (June 30, 2018: Tk. 596,463,606, USD 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. 2,335,457,132 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. 2,348,527,632 on May 31, 2019.
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.
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 121
12. Loans, Advances and Deposits
Amount in Taka
This is unsecured, considered good and consists of as follows :
June 30, 2019
June 30, 2018
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
159,119,478
306,316,482
6,320,466
62,559,041
10,821,850
224,723,000
253,580,629
37,773,704
152,573,688
13,420,366
199,755,875
592,000,065
160,757,931
35,318,373
57,999,873
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
2,273,040,821
2,066,840,961
(a) The maximum amount due from the employees during the year was Tk. 162,593,348 on April 30, 2019.
(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, Hamburg
for guarantee of the project 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.
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
June 30, 2019
June 30, 2018
235,175,572
191,916,333
310,734,039
36,396,437
582,306,048
142,718,744
34,473,477
369,108,554
122 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
15. Issued Share Capital
A. Authorized :
Ordinary Shares of Tk. 10/- each
Fully convertible 5 % Preference Shares of Tk. 100/- each
Amount in Taka
June 30, 2019
June 30, 2018
No. of Shares
Taka
No. of Shares
Taka
1,000,000,000
50,000,000
10,000,000,000
5,000,000,000
500,000,000
41,000,000
5,000,000,000
4,100,000,000
15,000,000,000
9,100,000,000
During the year the company amended it’s Memorandum and Articles of Association and increased it’s Authorized Share Capital as stated
above.
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
June 30, 2019
517,757,500
3,165,382,980
59,512,500
312,911,470
4,055,564,450
June 30, 2018
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 Director and Associates
Public Issue:
GDRs- AIM of London Stock Exchange
Foreign Investors’ Shareholdings (DSE/CSE)
Institutions (ICB, ICB Investors Accounts & Others)
Individual Share Holders
June 30, 2019
June 30, 2018
No. of shares
% of Share
Capital
No. of shares
% of Share
Capital
8,235,353
8,254,632
37,019,789
2.03
2.04
9.13
8,235,353
8,254,632
36,999,784
53,509,774
13.19
53,489,769
90,943,627
60,060,586
136,573,957
64,468,501
352,046,671
405,556,445
22.42
14.81
33.68
15.91
90,943,627
74,469,959
119,603,843
67,049,247
86.81
352,066,676
100
405,556,445
2.03
2.04
9.12
13.19
22.42
18.36
29.49
16.54
86.81
100
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 123
D. Distribution Schedule of Ordinary Shares:
Range of Holdings
In number of shares
No. of Shareholders
% of Shareholders
Number of Shares
% of Share Capital
June 30,
2019
June 30,
2018
June 30,
2019
June 30,
2018
June 30,
2019
June 30,
2018
June 30,
2019
June 30,
2018
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
41,958
12,144
980
469
154
77
70
121
163
41
43,579
12,360
969
478
147
72
60
116
163
38
74.69%
21.62%
1.74%
0.83%
0.27%
0.14%
0.12%
0.22%
0.29%
0.07%
75.16%
21.32%
1.67%
0.82%
0.25%
0.12%
0.10%
0.20%
0.28%
0.07%
5,876,193
17,827,041
7,015,971
6,683,931
3,819,206
2,686,413
3,220,468
8,692,718
51,410,310
298,324,194
6,030,643
18,111,978
6,952,640
6,834,127
3,629,536
2,493,725
2,724,479
8,267,895
48,891,611
301,619,811
Total
56,177
57,982
100%
100% 405,556,445
405,556,445
1.45%
4.40%
1.73%
1.65%
0.94%
0.66%
0.79%
2.14%
12.68%
73.56%
100%
1.49%
4.47%
1.71%
1.69%
0.89%
0.61%
0.67%
2.04%
12.06%
74.37%
100%
E. Market Price of Ordinary Shares:
The shares are listed in the Dhaka and Chittagong Stock Exchanges of Bangladesh and GDRs in the AIM of London Stock Exchange. Price
of each Share/ GDRs on the last working day of the year were:
Dhaka
Chittagong
AIM
June 30, 2019
June 30, 2018
Tk.
Tk.
GBP
83.50
84.30
0.389
93.90
94.70
0.510
F. Option on unissued Ordinary Shares :
There is no option on unissued shares as on June 30, 2019.
16. 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.
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
( b ) Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
Amount in Taka
June 30, 2019
June 30, 2018
1,974,611,879
239,710,340
330,410,281
2,544,732,500
2,809,556,317
280,596,178
759,326,232
3,849,478,727
the
This represents part of
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.
foreign currency
124 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
( 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
( d ) A B Bank
Amount in Taka
June 30, 2019
June 30, 2018
214,912,775
260,426,903
286,763,966
336,141,714
501,676,741
596,568,617
(97,808,499)
(114,965,180)
403,868,242
481,603,437
164,157,902
201,007,259
239,710,340
280,596,178
403,868,242
481,603,437
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 machinery and equipment financed by ODDO BHF Aktiengesellshaft, Frankfurt, Germany.
18. 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. Further detail is available at
Note 3.12
(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
19. Deferred Tax Liability
Opening Balance
Addition during the Year :
Deferred Tax on Assets (cost basis)-Note : 34 (b)
Deferred Tax on revalued amount
Closing Balance at end of the Year
660,004,303
529,565,300
306,176,739
155,686,017
966,181,042
685,251,317
(32,743,298)
(25,247,014)
933,437,744
660,004,303
815,463,050
564,457,967
1,748,900,794
1,224,462,270
1,889,823,385
1,852,665,968
94,498,243
18,249,550
16,614,044
20,543,373
2,002,571,178
1,889,823,385
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 125
20. Short Term Borrowings
Janata Bank Ltd. - Cash Credit-Hypothecation Loan
AB Bank
Liability for UPAS Letter of credit
Amount in Taka
June 30, 2019
June 30, 2018
5,336,101,392
3,897,681,180
2,491,112,625
-
873,810,482
1,064,417,066
8,701,024,499
4,962,098,246
(a) Short term borrowings from Janata Bank represents revolving credit facilities renewable annually. The borrowing carries 9% interest.
(b) Loan from AB Bank represents the Time Loan taken by the company to settle UPAS/Deferred LC liabilities related to import of various
project materials other than machinery and equipment for different projects under implementation.
(c) The loan with Janata Bank and AB Bank is secured by paripassu hypothecation of fixed and floating assets of the company excepting
the machinery and equipment financed by ODDO BHF Aktiengesellshaft, Frankfurt, Germany.
21. Long Term Borrowings-Current Maturity
This consists of as follows and is payable within next twelve months from the Balance Sheet date :
Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
Obligation Under Finance Leases
AB Bank
22. Creditors and Other Payables
Goods & Services
Provident Fund
Advance Against Sales
Others
23. 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)
860,104,664
852,470,599
164,157,902
201,007,259
462,991,847
400,341,697
1,487,254,413
1,453,819,555
518,625,291
569,160,255
403,722,991
188,151,262
23,952,936
43,576,730
90,788,026
138,649,988
1,037,089,244
939,538,235
300,660,035
136,464,535
195,518,256
166,983,289
496,178,291
303,447,824
126 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
24. Income Tax Payable
Opening Balance
Provision for the year
Short / (Excess) Provision for previous year
AIT & Treasury deposits during the year
25. Net Sales Revenue
This consists of as follows :
Domestic
Export
Amount in Taka
June 30, 2019
June 30, 2018
433,416,452
420,924,678
809,208,912
790,580,483
(16,843,012)
-
1,225,782,352
1,211,505,161
(1,058,484,114)
(778,088,709)
167,298,238
433,416,452
July 2018 -
June 2019
July 2017 -
June 2018
18,653,698,522
15,903,750,112
2,502,632,517
1,476,977,889
21,156,331,039
17,380,728,001
a) Revenue consists of sales of pharmaceutical formulation products of wide range of therapeutic categories in different dosage forms
and strengths and Active Pharmaceutical Ingredients (APIs). The quantity sold under different broad categories are as follows:
Sales represents:
Product Category
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable,Inhaler and Insulin
Diet Care Products
Active Pharmaceutical Ingredients
Liquid Nitrogen
Quantity
Unit
Million pcs.
Million pcs.
Pcs
Kg
Liter
July 2018 -
June 2019
5,778.50
111.96
6,572
163,538
379,012
July 2017 -
June 2018
4,520.25
97.08
21,566
141,374
437,986
b) Foreign Currency equivalent of Export was US$ 30,064,573 in 2018-19 as against US$ 17,953,810 in 2017-18.
26. Cost of Goods Sold
This is made-up as follows :
Work-in-Process (Opening)
Materials Consumed (Note: 27)
Factory Overhead (Note: 28)
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)
205,169,517
110,263,528
9,461,947,813
7,174,927,962
2,749,978,649
2,462,809,815
12,417,095,979
9,748,001,305
(420,135,832)
(205,169,517)
11,996,960,147
9,542,831,788
744,138,733
648,654,846
12,741,098,880
10,191,486,634
(219,365,187)
(191,843,220)
(1,155,804,007)
(744,138,733)
11,365,929,686
9,255,504,681
Item wise quantity and value of Finished Goods Stock are as follows :
Stock as June 30, 2019
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV
Fluid, Amino Acid, Ophthalmic, Nebulizer Solution,
Injectable, Inhaler and Insulin
Unit
Million pcs.
Million pcs.
Quantity
601.66
9.81
Active Pharmaceutical Ingredients
Kg
9,390
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
Unit
Million pcs.
Million pcs.
Kg
Pcs
Quantity
419.50
7.20
9,592
4,918
Amount in Taka
Value (Tk.)
655,507,429
471,081,153
29,215,425
1,155,804,007
Value (Tk.)
438,495,650
276,721,452
26,362,126
2,559,505
744,138,733
27. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
28. 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
Security Expenses
Other Expenses
128 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
July 2018 -
June 2019
July 2017 -
June 2018
2,983,410,526
10,168,837,818
1,745,626,100
8,412,712,388
(3,690,300,531)
(2,983,410,526)
9,461,947,813
7,174,927,962
1,027,826,755
266,430,909
29,239,356
1,743,735
39,992
12,214,261
10,510,955
1,892,086
259,057,257
28,098,315
9,563,197
217,766,232
145,518,810
5,847,370
26,970,395
685,050,226
19,223,665
2,985,133
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
15,870,697
5,417,512
2,749,978,649
2,462,809,815
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 19,649,274 .
(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.
29. Administrative Expenses
Amount in Taka
Salary & Allowances
Rent
Repairs and Maintenance
Registration & Renewals
Travelling & Conveyance
Entertainment
Printing & Stationery
Audit Fee
Telephone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
Business Acquisition Cost
Company Secretarial, Regulatory Fee and AGM Expense
Advertisement
Training & Conference
Depreciation
Board Meeting Attendance Fee
Security Expenses
Other Expenses
July 2018 -
June 2019
July 2017 -
June 2018
369,071,303
299,668,418
10,998,853
47,635,169
11,157,571
29,680,929
6,875,109
6,145,732
1,700,000
6,637,613
13,282,061
9,670,609
2,876,555
27,156,197
72,068
11,104,287
26,493,655
838,950
9,011,269
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
9,619,633
72,954,974
663,362,904
68,036,920
595,185,629
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 7,534,461 .
(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.
(d) Other expenses does not include any item exceeding 1% of total revenue.
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 129
30. 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
Security Expenses
Bad Debts
Other Expenses
July 2018 -
June 2019
Amount in Taka
July 2017 -
June 2018
1,505,566,145
1,212,995,091
82,061,605
9,193,359
456,534,374
53,789,575
35,647,182
21,656,034
9,779,736
49,003,151
98,146,246
30,611,846
277,485,580
450,959,074
11,394,312
188,842,902
86,136,878
273,539,867
260,673,378
315,948,856
89,610,694
18,179,874
2,193,977
1,310,119
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
15,870,697
-
11,625,705
4,328,264,764
3,548,437,826
(a) Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 32,196,434 .
(b) Distribution commission relates to I & I Services Ltd., a “ Related Party” for local sales of formulation products.
(c) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
(d) Sample expense includes VAT on sample and related dispatch expense.
(e) Other expenses does not include any item exceeding 1% of total revenue.
130 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
31. Other Income
Interest Income
Dividend Income
Royalty
Technology Transfer Income
Income From sale of Product Dossier
Distribution Commission
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)
Income from sale of materials
Profit/(Loss) on Sale of Fixed Assets (Note 41)
July 2018 -
June 2019
36,457,527
1,491,901
104,779,694
-
-
91,886,707
23,646,180
(20,010,341)
5,588,720
1,344,146
245,184,534
Amount in Taka
July 2017 -
June 2018
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
a. Taka 8,838,005 of the Royalty income comes from licensing of four of the BPL products given to Nuvista Pharma Limited while the
remaining amount is from overseas business.
b. The Distribution Commission is received from the subsidiary company Nuvista Pharma Limited for providing delivery of Nuvista’s products
using the BPL’s distribution network across the country as per the agreement entered into between the companies on an arm’s length
basis.
c. In December 2018, Government declared 10% incentives on FOB value of export of finished pharmaceutical formulation products subject
to fulfillment of certain conditions. The incentive claimable during the reporting period as per the eligibility criteria has been accrued and
accounted for. Further details are available in Note 3.10.
d. Exchange rate fluctuation gains has been netted off with the Exchange rate fluctuation losses. An exchange loss of Tk. 25,559,859 has
been accounted for the translation of outstanding foreign currency loan from ODDO BHF Aktiengesellshaft, Frankfurt, Germany at the
exchange rate prevailing on the financial position date.
32. 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
734,759,832
-
59,643,281
128,075,983
15,595,750
938,074,846
361,626,873
(21,183,793)
73,199,604
85,080,425
13,376,260
512,099,369
33. 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).
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 131
34. 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
July 2018 -
June 2019
809,208,912
(16,843,012)
792,365,900
94,498,243
886,864,143
8,943,722,454
(933,437,744)
8,010,284,710
25%
2,002,571,178
1,889,823,385
112,747,793
(18,249,550)
94,498,243
Reconciliation of Effective tax rate
Profit before Tax
Applicable Tax
Effect of lower rate on Export Profit excluding Cash Incentive
Effect of lower rate on cash incentive
Effect of lower rate on dividend income
Effect of permanent disallowances
Tax impact of prior year adjustment
Others
Income Tax Expense
2018-19
Tk.
3,910,365,117
977,591,279
(94,689,032)
(3,546,927)
(74,595)
42,675,980
(16,843,012)
(18,249,550)
886,864,143
%
25.00%
-2.42%
-0.09%
-0.00%
1.09%
-0.43%
-0.47%
22.68%
%
25.00%
-1.70%
0.00%
-0.00%
1.29%
0.00%
-0.61%
23.98%
a. Export Profits are subject to 12.5% Tax rate
b. 10% Tax deductible at source on the incentives is final tax liability on such income as per the Income Tax regulations
c. Dividend Income is taxable @ 20%
d. Permanent disallowances relates to excess of sample expenses over the allowable ceilings under Income Tax regulations
Amount in Taka
July 2017 -
June 2018
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
2017-18
Tk.
3,366,165,790
841,541,448
(57,232,893)
0
(75,205)
43,504,550
0
(20,543,373)
807,194,527
35. Other Comprehensive Income - Unrealized Gain/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
Exchange Rate Fluctuation Gain or loss/adjustment (Note: 7)
(428,429)
(1,424,130)
(1,852,559)
(942,433)
1,424,130
481,697
132 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
36. Earnings Per Share (EPS)
July 2018-
June 2019
Amount in Taka
July 2017-
June 2018
(a) Earnings attributable to the Ordinary Shareholders
Tk.
3,023,500,974
2,558,971,263
(b) Weighted average number of Shares outstanding during the year (Note 3.15)
405,556,445
405,556,445
Earnings Per Share (EPS)
Tk.
7.46
6.31
37. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Net Assets
Number of Shares at Financial Position date
Net Asset Value (NAV) Per Share
38. Net Operating Cash Flow Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Ordinary Shares at Financial Position date
Net Operating Cash Flow Per Share (NOCFPS)
June 30, 2019
June 30, 2018
47,792,895,230
42,165,015,439
(18,192,051,990)
(15,060,625,508)
29,600,843,240
27,104,389,931
405,556,445
405,556,445
72.99
66.83
July 2018-
June 2019
July 2017-
June 2018
2,726,457,706
1,848,067,034
405,556,445
405,556,445
6.72
4.56
39. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
3,023,500,974
2,558,971,263
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 Foreign Currency Bank Loan
Deferred tax
Non-operating items:
Dividend Income
Profit on sale of Fixed Assets
Effect of exchange rate changes on Cash and Cash Equivalents
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
1,445,651,201
756,961,575
44,193,000
524,438,524
-
25,559,859
94,498,243
(3,051,665)
(1,491,901)
(1,344,146)
(215,618)
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
-
(1,739,642,804)
(1,682,865,561)
(908,099,710)
(60,560,046)
(588,946,450)
(206,199,860)
97,551,009
192,730,467
(266,118,214)
(1,197,360,400)
(18,678,378)
(569,604,280)
(369,161,543)
401,374,456
58,072,810
12,491,774
Net cash Generated from Operating Activities
2,726,457,706
1,848,067,034
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 133
40. Related Party Disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties
(a) I & I Services Ltd.
(b) Bangladesh Export Import Co. Ltd
(C) Nuvista Pharma Ltd
Nature of Transactions
Value of Transaction
Balance at year end
Local Delivery
Distribution Commission
Short Term Investment &
Interest there on
Toll Expense
Cost of Service
Transfer/Purchase of Material
Transfer/sales of Material
and Assets
Distribution Commission
Income
22,217,416,177
260,673,378
16,032,638
9,093,735
36,914,574
19,432,198
48,328,432
91,886,707
2,335,457,132
323,364,536
1,767,727
10,628,065
1,493,892
217,748
8,165,323
41. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the year ended June 30, 2019:
Particulars of Assets
Cost
Accumulated
Depreciation
Written
Down Value
Sales Price
Profit /
(Loss)
Mode of
Disposal
Name of
Parties
Plant & Machinery
21,845,168
8,555,677
13,289,491 11,469,470
(1,820,021) Negotiation
Transport & Vehicle
16,485,538
13,851,547
2,633,991
5,798,158
3,164,167 Negotiation
Various
Individuals
Various
Individuals
Tk.
38,330,706
22,407,224
15,923,482 17,267,628
1,344,146
42. 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
295,078,120
21,193,747
12,661,258
32,476,179
5,971,918
8,085,290
375,466,512
(b) The above includes salary, allowances, and perquisites amounting Tk. 41,367,100 paid to the Managing Director.
(c) This also includes Tk. 838,950 paid to Directors including indipendednt Directors for attending Board and Audit Committee meetings.
(d) Excepting as stated above (c) no board meeting fee was paid to any directors.
(e) No amount of money was expended by the company for compensating any member of the board for special services rendered.
134 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
43. Production Capacity and Utilization
Item
Unit
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic, Nebulizer
Solution, Injectable, Inhaler and Insulin
Million
Pcs
Million
Pcs
Production
Capacity
Actual
Production
Capacity
Utilization
July 18 to
June 19
July 17 to
June 18
July 18 to
June 19
July 17 to
June 18
July 18 to
June 19
July 17 to
June 18
5,560.19
4,349.64
6,125.42
4,741.32
110.17% 109.00%
98.99
94.49
117.28
97.83
118.48% 103.53%
Production does not include goods manufactured under contract manufacturing arrangement from third party manufacturing sites.
44. Capital Expenditure Commitment
There was no capital expenditure contracted but not incurred or provided for at June 30, 2019.
45. Finance Lease Commitment
At June 30, 2019, the company had annual commitment under finance leases as set out below :
Leases expiring within 1 year
Leases expiring within 2-5 years (inclusive)
164,157,902
239,710,340
403,868,242
46. Claim not Acknowledged as Debt
There was no claim against the company not acknowledged as debt as on June 30,2019.
47. 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, 2019.
48. Payments Made in Foreign Currency :
Import of Machinery, Equipment’s & Spares
Import of Material
Regulatory Fees, Foreign Currency Loan repayment & Other Expenses
49. Foreign Exchange Earned / Received :
(a) Collection from Export Sales
(b) Royalty Income
Foreign Currency
(Equivalent US$)
Taka
17,235,944
1,456,665,927
70,060,442
5,894,863,149
17,202,059
1,453,573,983
Foreign Currency
(Equivalent US$)
Taka
27,826,915
2,318,045,449
1,148,515
95,941,689
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 135
50. Commission / Brokerage to selling agent :
No commission was incurred or paid to any sales agent nor any brokerage or discount other than conventional trade discount was
incurred or paid against sales.
51. 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 these claims.
There is also a disputed VAT claim aggregating Tk. 144,113,691 against the company. The Company own the verdict of the Appellate Tribunal
in its favor. 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.
52. Events after The Reporting Period
(a) The directors recommended 15% cash dividend (i.e. Tk. 1.50 per share) for the year 2018-19. The dividend proposal is subject to
shareholders’ approval at the forthcoming Annual General Meeting.
(b) The Company repaid Tk. 1,537,026,214 of the Time Loan of AB Bank Limited as reported in note 20.
c) Board of Directors of Nuvista Pharma Limited has declared dividend @ 20%,( i.e. Tk. 2.00 per share) for the financial year ended on June
30, 2019. The proposed dividend are subject to approval of the shareholders of NPL in the Annual General meeting scheduled on November
28, 2019.
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.
53. 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
53.01 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, 2019 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.
53.02 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.
136 | Annual Report 2018-19 | Financial Statements-Beximco Pharma Stand-alone
53.03 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.
Currency risk
The company is exposed to currency risk on export revenues and import of raw material, machineries and equipment. Majority of the
company’s foreign currency transactions are denominated in USD. Additionally the Company has foreign currency loan which shall be repaid
in foreign currency. However, The Company maintains an Export Retention Quota (ERQ) account in USD where 50% of the export earnings
are deposited. This partly contributes to minimize the currency risk associated with payments in foreign currency.
Interest rate risk
Interest rate risk is the risk that arises due to changes in interest rates on borrowing. An increase in interest rates will result in higher
borrowing costs and impact the Company’s profitability. The Company continuously monitors and negotiates viable deals to minimize the
interest rate risk. Further, the company tries to remain at a lower level of gearing to minimize the impact of financing costs. With its strong
ability to generate cash flows from operating activities, the company tries to pay off its debts on due time to minimize the impact of an
increase in interest rates. The company has arrangement with banks to transfer the sales proceeds into its overdraft account on a real time
basis through RTGS system to minimize borrowing cost.
The foreign currency loan is subject to floating rates of interest. 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
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Dhaka
October 28, 2019
Financial Statements-Beximco Pharma Stand-alone | Annual Report 2018-19 | 137
Nuvista Pharma Limited
NUVISTA PHARMA LIMITED
DIRECTORS’ REPORT TO THE SHAREHOLDERS
On behalf of the Board of Directors of Nuvista Pharma Limited, I am pleased to present the Directors’ Report and the Audited Financial
Statements for the year ended 30 June, 2019 together with the Auditors’ Report thereon.
1. Operating Performance
I am happy to inform that we completed a good year with impressive achievement. Our sales increased by a significant 26.5% to reach at Tk.
1,669.4 million as against Tk. 1,319.9 million of previous year. After takeover, we redesigned our sales and marketing strategies, restructured
the sales team, extended the distribution network and enriched the product portfolio which helped accomplish the sales growth. During the
year under review, we added 8 new products which contributed Tk. 77.3 million in sales. All of our key therapeutic segments registered double
digit growth.
Along with sales, we attained considerable growth in profit. The Company earned an after-tax net profit of Tk. 89.6 million in 2018-2019 as
against a loss of Tk. 94.7 million in 2017-18. The net operating cash flow per share stands at Tk. 19.8 as compared to Tk. 14. 3 of last year.
The net assets value per share has also increased to Tk. 46.1 in 2018-2019 from Tk. 38.5 in 2017-2018.
2. Board of Directors
The following persons are currently the member of the Board of Directors of the Company:
Mr. Nazmul Hassan : Chairman and Director
Begum Parag : Nominee Director, Government of Bangladesh
Mr. S. M. Rabbur Reza : Managing Director
Mr. Mohammad Ali Nawaz : Director
Mr. Shah Monjurul Hoque : Independent Director
3. Profit and it’s Appropriation
Net Profit/(loss) before tax
Provision for tax
Net Profit/(loss) after tax
Unappropriated profit from previous year
Payment of dividend
Profit available for appropriation
Recommended for appropriation:
Proposed dividend
Retained Earnings after proposed dividend
Year ended
30 June, 2019
108,379,564
(18,798,639)
89,580,925
133,936,896
(868,344)
222,649,477
(23,500,320)
199,149,157
Taka
Year ended
30 June, 2018
(58,521,975)
(36,207,899)
(94,729,874)
229,846,786
(1,180,016)
133,936,896
(868,344)
133,068,552
Nuvista Pharma Limited | Annual Report 2018-19 | 139
4. Dividend
The Board of Directors recommends 20% cash dividend i.e. Tk. 2.00 per share for the year ended 30 June 2019 to the Shareholders, subject
to the approval of the Shareholders in the AGM of the Company.
5. Retirement and Re-Election of Director
The Board appointed Mr. Mohammad Ali Nawaz as Director of the Company in its meeting held on February 8, 2018 and this was subsequently
approved by the shareholders in the 44th. AGM held on 25 November, 2018.
As per Article 125 and 126 of the Articles of Association of the Company Mr. Mohammad Ali Nawaz retires by rotation and being eligible, offer
himself for re-election and is placed for approval by the shareholders in the AGM.
6. Auditors
The existing Auditors M/s. A. Qasem & Co., Chartered Accountants, who were appointed as Auditors of the Company in the 44th. AGM of the
Company have carried out the audit for the year ended 30 June, 2019.
M/s. A. Qasem & Co., Chartered Accountants, the Auditors of the Company retires at this meeting and have expressed their willingness to
continue in office for the year ended on 30 June, 2020, subject to the approval of the Shareholders in the 45th. AGM of the Company. The
Board recommends for reappointment of M/s. A. Qasem & Co., Chartered Accountants as Auditors of the Company for the year ended on 30
June, 2020.
On behalf of the Board,
Nazmul Hassan MP
Chairman
22 October, 2019
140 | Annual Report 2018-19 | Nuvista Pharma Limited
Financial Statements - Nuvista Pharma Limited
Nuvista Pharma Limited
Auditor’s Report and Financial Statements
As at and for the year ended 30 June 2019
Independent auditor’s report
To the shareholders of Nuvista Pharma Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Nuvista Pharma Limited (the Company), which comprise the statement of financial position as
at 30 June 2019, 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 notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 30 June 2019,
and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs),
the Companies Act 1994 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, 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.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
142 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
•
•
•
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that gives a true and fair view.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, we also report the following:
(a) we have obtained all the information and explanation 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; and
(c) the statement 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.
Dhaka, 22 October 2019
A. Qasem & Co.
Chartered Accountants
Partner: Mohammad Motaleb Hossain
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 143
•
Nuvista Pharma Limited
Statement of financial position
As at 30 June 2019
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 LIABILITIES
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 2019
Taka
30 June 2018
Taka
4
5
6
7
6
8
9
10
11
12
13
14
15
16
17
14
18
19
20
21
1,212,496,913
8,180,190
6,321,316
1,226,998,419
33,145,875
3,317,051
35,681,115
361,268,453
31,341,064
28,152,726
492,906,284
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
1,719,904,703
1,799,698,996
117,501,600
423,587,141
541,088,741
7,664,875
43,210,417
106,585,224
144,852,403
302,312,919
1,608,361
699,284,556
53,587,152
99,996,369
22,026,605
876,503,043
1,178,815,962
1,719,904,703
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
Footnotes:
1. Auditors’ Report - page 1
2. The annexed notes 1 to 35 form an integral part of these financial statements.
Chairman
Managing Director
Director
Dhaka, 22 October 2019
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 2019
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
30 June 2019
30 June 2018
Notes
Taka
Taka
22
23
24
25
26
27
8
17
1,669,392,491
(833,024,115)
836,368,376
(88,443,477)
(543,485,224)
204,439,675
1,046,563
(91,687,696)
113,798,542
(5,418,978)
108,379,564
(11,394,946)
(7,403,693)
(18,798,639)
89,580,925
-
1,319,875,856
(666,021,602)
653,854,254
(120,728,065)
(496,322,557)
36,803,632
(2,543,380)
(92,782,227)
(58,521,975)
-
(58,521,975)
(7,919,255)
(28,288,644)
(36,207,899)
(94,729,874)
-
Total comprehensive income/(loss) for the year
89,580,925
(94,729,874)
Earnings Per Share (EPS)
Footnotes:
1. Auditors’ Report - page 1
2. The annexed notes 1 to 35 form an integral part of these financial statements.
7.62
-8.06
Chairman
Managing Director
Director
Dhaka, 22 October 2019
As per our report of same date
A. Qasem & Co.
Chartered Accountants
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 145
Nuvista Pharma Limited
Statement of changes in equity
For the year ended 30 June 2019
Particulars
Reserves and surplus
Share capital
General
reserve
Share
premium
Pre-
incorporation
profit
Revaluation
reserve
Retained
earnings
Total
reserves
and surplus
Total
Taka
Taka
Taka
Taka
Taka
Taka
Taka
Taka
Balance as at 1 July 2017
117,501,600
7,511,991
30,844,170
243,737
162,337,766 229,846,786
430,784,450
548,286,050
Dividend paid
Loss after tax for the year ended 30 June
2018
-
-
-
-
-
(94,729,874)
(94,729,874)
(94,729,874)
(1,180,016)
(1,180,016)
(1,180,016)
Balance as at 30 June 2018
117,501,600
7,511,991
30,844,170
243,737
162,337,766 133,936,896
334,874,560
452,376,160
Number of shares
Net assets value per share
11,750,160
38.50
Balance as at 1 July 2018
117,501,600
7,511,991
30,844,170
243,737
162,337,766 133,936,896
334,874,560
452,376,160
Dividend paid
Profit after tax for the year ended 30 June
2019
-
-
-
-
-
89,580,925
89,580,925
89,580,925
(868,344)
(868,344)
(868,344)
Balance as at 30 June 2019
117,501,600
7,511,991
30,844,170
243,737
162,337,766 222,649,477
423,587,141
541,088,741
Number of shares
Net assets value per share
11,750,160
46.05
Chairman
Managing Director
Dhaka, 22 October 2019
Director
As per our report of same date
A. Qasem & Co.
Chartered Accountants
146 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
Nuvista Pharma Limited
Statement of cash flows
For the year ended 30 June 2019
A.
Cash flows from operating activities
Cash receipts from customers and others
Cash paid to suppliers and employees
Cash generated from operation
Interest paid
Income tax paid
Net cash generated from operating activities
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
C.
Cash flows from financing activities
Long term bank borrowings
Short term bank borrowings
Lease finance
Dividend paid
Net cash (used in)/from financing activities
D. Net increase/(decrease) in cash and cash equivalents (A+B+C)
E. Opening cash and cash equivalents
F. Closing cash and cash equivalents (D+E)
Net operating cash flow per share
Number of shares
30 June 2019
30 June 2018
Taka
Taka
1,664,930,509
(1,322,665,115)
342,265,394
(94,334,168)
(14,507,553)
233,423,673
(59,226,082)
272,997
(58,953,085)
(124,736,123)
(54,614,023)
9,273,236
(868,344)
(170,945,254)
3,525,334
24,627,392
28,152,726
19.87
11,750,160
1,704,326,525
(1,421,067,187)
283,259,338
(95,952,969)
(18,954,575)
168,351,794
(55,549,997)
13,077,500
(42,472,497)
(34,264,154)
(52,076,010)
(39,863,419)
(1,180,016)
(127,383,599)
(1,504,302)
26,131,694
24,627,392
14.33
11,750,160
Chairman
Managing Director
Director
Dhaka, 22 October 2019
As per our report of same date
A. Qasem & Co.
Chartered Accountants
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 147
Nuvista Pharma Limited
Notes to the financial statements
As at and for the year ended 30 June 2019
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 AIM of 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
1.3
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.
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 International Financial Reporting Standards (IFRSs), the
Companies Act 1994 and other applicable laws and regulations.
Initial application of new standards
The company has initially applied IFRS 15 (see Note 3.13) and IFRS 9 (see Note 3.10) from 1 July 2018. These two new
standards do not have a material effect on the company’s financial statements.
Due to the transition methods chosen by the company in applying these standards, comparative information throughout these
financial statements has not been restated to reflect the requirements of the new standards.
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.
148 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
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.
2.6
Statement of cash flows
Statement of cash flows has been prepared in accordance with as per IAS 7: “Statement of cash flows” under direct method.
2.7
Reporting period
These financial statements cover one year from 1 July 2018 to 30 June 2019.
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
IAS 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.
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 149
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%
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 IAS 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 ended 30 June 2019.
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.
150 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
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 2019.
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 include raw materials, raw materials in transit, work-in-process, finished goods and spare parts. These are valued at
the lower of cost and net realisable value, with appropriate provisions for obsolete and slow-moving items. Cost is determined
using the weighted average method and includes all expenses incurred in bringing the inventories to their present location and
condition.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale.
3.10
IFRS 9 Financial Instruments
IFRS 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell
non-financial items. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement.
There was no material impact of adopting IFRS 9 on the company’s statement of financial position as at 30 June 2019 and its
statement of profit or loss and OCI for the year ended 30 June 2019 and the statement of cash flows for the year then ended.
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 151
IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, FVOCI and FVTPL. The
classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed
and its contractual cash flow characteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and
receivables and available for sale.
IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
The adoption of IFRS 9 has not had a significant effect on the company’s accounting policies related to financial liabilities.
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
IFRS 15 Revenue from Contracts with Customers
IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaced IAS
18 Revenue, IAS 11 Construction Contracts and related interpretations. Under IFRS 15, revenue is recognised when a customer obtains
control of the goods or services. Determining the timing of the transfer of control–at a point in time or over time–requires judgement.
The company has adopted IFRS 15 using the cumulative effect method (without practical expedients), with the effect
of initially applying this standard recognised at the date of initial application (i.e. 1 July 2018). Accordingly, the information
presented for 2017-18 has not been restated–i.e. it is presented, as previously reported, under IAS 18 and related
interpretations. Additionally, the disclosure requirements in IFRS 15 have not generally been applied to comparative information.
There was no material impact of adopting IFRS 15 on the Company’s statement of financial position as at 30 June 2019 and its
statement of profit or loss and OCI for the year ended 30 June 2019 and the statement of cash flows for the year then ended.
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.
152 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
3.16
Standards adopted but not yet effective-IFRS 16: Leases
A new Standard IFRS 16: Leases, has been made effective for the reporting period beginning on or after 1 January 2019. The
new standard has introduced a single on-balance sheet lease accounting model for leases and replaces the previously adopted
IAS 17: Leases.
The Company has been consistently recording its underlying assets acquired under lease arrangement as Assets and the
corresponding obligation as Liabilities in the financial statements. Lease payments made are apportioned between the finance
expenses and the reduction of outstanding lease liability which are in compliance with IFRS 16, excepting the classification of the
leased assets as “Right-of-use assets” in the Statement of Financial Position.
The Company has not early adopted IFRS 16 in preparing the financial statements and intends to do so when it becomes effective
for the Company. This however, has no material impact on the reported financial statements.
3.17
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.
3.18
General
Previous year’s figures have been rearranged/reclassified wherever considered necessary to conform to current year’s presentation.
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 153
4. Property, plant and equipment
Particulars
Leasehold
land
Factory
building
Factory
warehouse
Plant and
machinery
Motor
vehicles
Computer
and IT
equipment
Equipment
and electric
fixtures and
fittings
Furniture
fittings
Total
Taka
Taka
Taka
Taka
Taka
Taka
Taka
Taka
Taka
Cost or valuation
As at 1 July 2018
Addition/transfer during the year
Adjustment/disposal
275,608,713
236,790,594
9,909,831
8,283,847
442,513,098
29,632,908
144,453,256
7,485,000
(5,661,407)
24,853,887
1,452,820
(102,600)
659,294,426
17,539,597
44,345,643
2,608,245
1,837,769,448
67,002,417
(5,764,007)
As at 30 June 2019
275,608,713 236,790,594
18,193,678 472,146,006 146,276,849
26,204,107
676,834,023 46,953,888 1,899,007,858
Accumulated depreciation
As at 1 July 2018
Charge during the year
Adjustment/disposal
As at 30 June 2019
Net book value
-
42,386,558
5,907,364
3,079,154
379,225
148,312,713
23,005,008
82,617,876
23,456,021
(5,503,391)
16,409,818
4,268,679
(81,519)
277,905,936
40,311,902
21,991,496
2,064,105
592,703,551
99,392,304
(5,584,910)
-
48,293,922
3,458,379 171,317,721 100,570,506
20,596,978
318,217,838 24,055,601
686,510,945
As at 30 June 2019
275,608,713 188,496,672
14,735,299 300,828,285
45,706,343
5,607,129
358,616,185 22,898,287 1,212,496,913
As at 30 June 2018
275,608,713 194,404,036
6,830,677 294,200,385
61,835,380
8,444,069
381,388,490 22,354,147 1,245,065,897
4.1
Depreciation charge has been allocated as under
Conversion cost included in cost of goods sold (Note 23.3)
General and administration expenses (Note 24)
Selling and distribution expenses (Note 25)
4.2
Disclosure for revalued assets
30 June 2019
Taka
79,655,332
3,403,571
16,333,401
30 June 2018
Taka
80,838,538
6,735,673
18,316,805
99,392,304
105,891,016
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.
154 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
5.
Capital work-in-progress
Factory Warehouse
Plant and machinery
Motor vehicles
Furniture
Equipment & Electric fixture and
fittings
Computer and IT equipment
Balance as at 30 June
6.
Loan to employees
As at
1 July
2018
Taka
-
Addition
during
the year
Transfer to
property, plant
and equipment
Taka
Taka
8,283,847
8,283,847
12,877,107
16,755,801
29,632,908
-
-
7,485,000
7,485,000
2,608,245
2,608,245
As at
30 June
2019
Taka
-
-
-
-
3,079,418
21,740,369
17,539,597
7,280,190
-
2,352,820
1,452,820
15,956,525
59,226,082
67,002,417
900,000
8,180,190
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
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
Balance as at 30 June
30 June 2019
30 June 2018
Taka
Taka
8,920,525
717,842
9,638,367
(3,317,051)
6,321,316
1,478,223
-
5,413,179
23,005,354
3,082,344
166,775
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
33,145,875
42,294,454
32,568,508
14,507,553
(11,394,946)
35,681,115
21,533,188
18,954,575
(7,919,255)
32,568,508
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 155
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.
Trade receivables is net off provision for bad debts Tk. 700,618 during 2018-2019.
11. Cash and cash equivalents
Cash in hand
Cash at banks
Eastern Bank Limited
The City Bank Limited
Mutual Trust Bank Limited
Dhaka Bank Limited
BRAC Bank Limited
IFIC Bank Limited
Shimanto Bank Limited
Janata Bank Limited
National Bank Limited
Balance as at 30 June
156 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
30 June 2019
30 June 2018
Taka
Taka
99,377,976
35,395,067
120,721,981
17,482,090
25,507,548
51,997,845
119,998,485
57,553,706
143,365,346
23,977,793
31,820,560
16,682,330
350,482,507
393,398,220
9,577,874
321,244
103,737
783,091
10,785,946
7,666,099
330,437
518,687
614,603
9,129,826
361,268,453
402,528,046
4,619,964
26,721,100
31,341,064
6,284,139
20,594,943
26,879,082
81,352
243,281
36,869
111,519
30,395
32,983
63,766
20,445,497
23,850
6,697,164
629,331
28,071,374
28,152,726
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
12. Share capital
Authorised
50,000,000 Ordinary shares of Tk. 10 each
Issued, subscribed and paid-up
30 June 2019
30 June 2018
Taka
Taka
500,000,000
500,000,000
11,579,160 Ordinary shares of Tk. 10 each issued for cash
115,791,600
115,791,600
171,000 Ordinary shares of Tk. 10 each issued for consideration other than cash
1,710,000
1,710,000
11,750,160
117,501,600
117,501,600
Shareholding position
Nominal Value(Taka) Percentage of holding (%)
30 June 2019
30 June 2018
30 June 2019
30 June 2018
Beximco Pharmaceuticals Limited
Government of Bangladesh
Other shareholders (2019:28; 2018:28)
100,134,740
15,186,000
2,180,860
100,134,740
15,186,000
2,180,860
117,501,600
117,501,600
85.22
12.92
1.86
100
85.22
12.92
1.86
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
7,511,991
30,844,170
243,737
7,511,991
30,844,170
243,737
162,337,766
162,337,766
222,649,477
133,936,896
423,587,141
334,874,560
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.
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 157
14
Lease obligation
Obligation under finance lease has been recognised as liability 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. The total of minimum lease payments at the
statement of financial position date and their present value, for each of the following periods are as follows:
Minimum lease
obligations
Present value
30 June 2019
30 June 2018
Taka
Taka
Taka
2,634,716
1,608,361
9,475,435
7,664,875
12,110,151
9,273,236
-
-
-
171,018,192
283,116,730
171,018,192
283,116,730
(127,807,775)
(115,170,190)
43,210,417
167,946,540
Not later than one year
Later than one year and not later than five years
15. Long term bank borrowings
Dhaka Bank Limited (Note 15.1)
Total long term bank borrowings
Less: Current portion (Note 18)
Balance as at 30 June
15.1 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.
15.2
Collateral
All loans are secured by a registered mortgage on specific factory land and buildings of the company.
15.3
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 issued by Beximco Pharmaceuticals Limited.
158 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
16. 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
17. Deferred tax liabilities
Deferred tax liabilities arrived at as follows:
Year: 2018-2019
Property, plant and equipment
Provision for gratuity (net of payment)
Temporary difference
Applicable tax rate for items recognised in statement of comprehensive income
Applicable tax rate for items recognised in equity
Deferred tax Liabilities(a):
Deferred tax liabilities on revaluation surplus
Net deferred tax liabilities
30 June 2019
30 June 2018
Taka
Taka
99,704,228
21,818,144
148,114,957
13,093,910
121,522,372
161,208,867
(14,937,148)
(61,504,639)
106,585,224
99,704,228
Carrying amount on
statement of financial
position date
Tax base
Taka
Taka
Taxable/
(deductible)
temporary
difference
Taka
936,888,200
498,289,941
438,598,259
(106,585,224)
(106,585,224)
332,013,035
35%
15%
(116,204,562)
(28,647,841)
(144,852,403)
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 159
Year: 2017-2018
Property, plant and equipment
Provision for gratuity (net of payment)
Temporary difference
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
Carrying amount on
statement of financial
position date
Tax base
Taka
Taka
Taxable/
(deductible)
temporary
difference
Taka
969,457,185
558,893,333
410,563,852
(99,704,228)
(99,704,228)
310,859,624
35%
15%
(108,800,869)
(28,647,841)
(137,448,710)
Deferred tax recognised in the statement of profit or loss and other comprehensive income in 2018- 19 (a-b)
(7,403,693)
Deferred tax recognised in the statement of profit or loss and other comprehensive income in 2017-18
(28,288,644)
18. Short term bank borrowings
Bank overdrafts
Dhaka Bank Limited (Limit Tk. 180,000,000)
Short term bank loans
The City Bank Limited
Mutual Trust Bank Limited
Dhaka Bank Limited
Current portion of long term loan (Note 15)
30 June 2019
30 June 2018
Taka
Taka
86,077,696
86,077,696
161,151,048
161,151,048
-
-
2,507,475
18,839,012
485,399,085
456,230,854
485,399,085
477,577,341
127,807,775
115,170,190
699,284,556
753,898,579
Collateral and security given against short-term finance are a part of overall financing arrangement with Dhaka Bank Limited as
indicated in note 15. The interest rate is 11.5% -12.5% per annum and is payable on quarterly rests.
160 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
19. Trade payables
Trade payables
This represents amount due against purchase of raw, chemical and packing materials.
20. Liabilities for expenses
Promotional expenses, literature, etc.
Leave encashment
Audit fees
Legal and professional fees
Utilities
Local travelling
Accrued interest
Accrued expenses
21. 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
22. Revenue
Net sales revenue
Toll income
Quantitative details of sales
Locally manufactured products
30 June 2019
30 June 2018
Taka
Taka
53,587,152
53,587,152
54,488,508
54,488,508
61,186,648
4,614,229
482,500
100,000
4,161,182
6,342,383
2,396,834
20,712,593
99,996,369
858,729
2,109,941
5,418,978
2,420
809,848
1,025,940
3,028,774
374,270
-
8,165,323
232,382
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
22,026,605
32,976,257
1,647,243,552
1,300,442,853
22,148,939
19,433,003
1,669,392,491
1,319,875,856
Unit
Tabs
Caps
Quantity
Quantity
248,639,734
187,208,876
26,627,792
25,989,669
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 161
Amps & Suspensions
12,636,917
10,149,157
23. Cost of goods sold
Opening stock of finished goods
Cost of production (Note 23.1)
Cost of goods available for sale
Cost of physician sample
Closing stock of finished goods
23.1
Cost of production
Opening stock of semi-finished and WIP
Materials consumed (Note 23.2)
Conversion cost (Note 23.3)
Closing stock of semi-finished and WIP
23.2 Materials Consumed
Opening stock
Purchase
Closing stock
Item wise quantity and value of finished goods stock are as follows :
Stock as July 1, 2018
Tabs
Caps
Amps & Suspensions
Stock as June 30, 2019
Tabs
Caps
Amps & Suspensions
Unit
pcs.
pcs.
pcs.
Unit
pcs.
pcs.
pcs.
162 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
30 June 2019
30 June 2018
Taka
Taka
119,998,485
68,228,503
818,843,227
724,888,476
938,841,712
793,116,979
(6,439,621)
(7,096,892)
(99,377,976)
(119,998,485)
833,024,115
666,021,602
57,553,706
88,832,381
384,286,478
314,317,244
412,398,110
379,292,557
854,238,294
782,442,182
(35,395,067)
(57,553,706)
818,843,227
724,888,476
199,163,699
146,325,774
348,834,398
367,155,169
(163,711,619)
(199,163,699)
384,286,478
314,317,244
Quantity
Value (Tk.)
45,743,691
9,778,283
1,430,023
68,178,896
21,313,752
30,505,837
119,998,485
Quantity
Value (Tk.)
36,149,741
6,497,142
1,473,298
57,990,530
16,240,513
25,146,933
23.3 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)
24. General and administration expenses
Salaries and allowances
Directors’ fees (Note 29)
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
99,377,976
30 June 2019
30 June 2018
Taka
Taka
149,373,933
134,687,674
1,849,408
40,328,051
23,074,599
1,372,706
7,582,176
2,323,671
26,067,334
2,115,683
2,373,469
39,384,600
25,103,533
-
3,096,144
1,745,844
1,115,859
513,977
2,858,401
596,521
1,866,869
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
79,655,332
80,838,538
412,398,110
379,292,557
49,263,810
73,890,013
270,000
977,634
10,597,350
2,574,754
1,036,923
577,485
3,059,651
1,751,474
643,358
-
966,473
1,093,223
2,834,023
1,956,937
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
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 163
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)
25. Selling and distribution expenses
Salaries and allowances
Contribution to provident fund
Overseas travelling expenses
Local travelling expenses
Entertainment
Samples
Promotional expenses
Royalty expenses
Literature, pad and handouts
Distribution commission
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
Meeting and seminars
Bad debts
General expenses
Depreciation (Note 4.1)
164 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
2,748,550
2,514,497
30 June 2019
30 June 2018
Taka
1,294,203
111,076
420,402
350,000
177,993
1,630,000
-
704,587
3,403,571
Taka
1,476,192
1,494,167
718,178
325,000
1,281,370
1,550,160
863,299
981,882
6,735,673
88,443,477
120,728,065
234,702,614
207,039,026
4,469,662
6,957,103
3,702,016
6,612,503
56,824,671
52,279,018
732,893
9,200,807
55,209,322
8,838,005
18,986,879
91,886,707
5,261,453
2,109,274
3,731,217
9,926,979
1,071,518
1,008,359
1,372,228
2,421,456
460,000
1,025,056
1,436,267
4,413,633
3,230,123
700,618
1,174,979
16,333,401
493,441
8,096,951
50,331,929
-
16,817,775
92,122,035
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
-
1,580,550
18,316,805
26. Non-operating income/(expenses)
Gain/(loss) on disposal of property, plant and equipment
Rental Income
Sale of miscellaneous items
27. Interest expenses
Interest on
Long term loan
Short term finance
Finance lease
Bank charges
28. Capacity utilisation
Amps & Suspensions
Tablet
Capsule
29. Remuneration and fees to directors
Remuneration (included in salaries and allowances)
Fees (Note 24)
30. Auditors’ remuneration
Statutory audit fees
Special audit fees
P.F. audit fees
WPPF audit fees
543,485,224
496,322,557
30 June 2019
30 June 2018
Taka
93,900
649,800
302,863
Taka
(2,656,845)
-
113,465
1,046,563
(2,543,380)
27,718,969
62,379,912
466,666
1,122,149
32,695,455
55,468,898
4,617,874
-
91,687,696
92,782,227
Installed
capacity
Actual
production
Actual
Utilisation
Unit
Unit
19,822,400
10,062,496
1,322,390,400
248,984,203
56,044,880
22,576,447
%
51%
19%
40%
30 June 2019
30 June 2018
Taka
-
270,000
270,000
350,000
-
35,000
35,000
420,000
Taka
35,628,152
390,000
36,018,152
325,000
243,750
35,000
35,000
638,750
Financial Statements - Nuvista Pharma Limited | Annual Report 2018-19 | 165
31. 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
Nature of transactions
Value of transaction
Balance at year end
Toll income
Cost of services
Transfer/ sales of
Materials
Transfer/ purchases of
Materials and assets
9,093,735
36,914,574
19,432,198
1,767,727
10,628,065
1,493,892
48,328,432
217,748
Distribution commission
91,886,707
8,165,323
Beximco Pharmaceuticals
Limited
Immediate and ulti-
mate parent
32. Payments made in foreign currency
Particulars
30 June 2019
30 June 2018
Foreign
currency
(Equivalent USD)
Taka
Taka
Import of raw, chemicals and packing materials
3,021,018
256,786,558
223,457,810
Import of machinery and spare parts
389,544
33,111,263
13,619,571
289,897,821
237,077,381
33. Contingent liabilities
33.1
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.
33.2 There is additional contingent liabilities in respect of outstanding letters of credit of Tk. 23,451,928 (June 2018: Tk. 20,778,877).
34. 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 1,007 (June 2018: 954).
35. Events after reporting date
The Board in its meeting dated 22 October 2019 recommended that cash dividend of 20% i.e. Tk. 2.00 per share, totalling Tk.
23,500,320 be paid for the year 2018-2019. The dividend proposal is subject to shareholders’ approval at the forthcoming annual
general meeting.
Chairman
Managing Director
Director
166 | Annual Report 2018-19 | Financial Statements - Nuvista Pharma Limited
Financial Statements-Beximco Pharma API Limited
Beximco Pharma API Limited
Audited Financial Statements
For the Year Ended June 30, 2019
Independent Auditors’ Report
To the Shareholders of Beximco Pharma API Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Beximco Pharma API Limited, which comprise the statement of financial position as at 30 June
2019, 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 notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at June 30 2019,
and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs),
the Companies Act 1994 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA code. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance 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), the Companies Act 1994, 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.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decision of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional Skepticism throughout the
audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidences that is sufficient and appropriate to provide a basis for audit
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit
evidences obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
168 | Annual Report 2018-19 | Financial Statements-Beximco Pharma API Limited
•
•
•
•
on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidences obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the business activities of the company to express an
opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994 and other applicable laws and regulations, we also report that:
(a) We have obtained all the information and explanation 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; and
(c) The statement of financial (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.
Dhaka
Date: August 11, 2019
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Beximco Pharma API Limited | Annual Report 2018-19 | 169
•
•
Beximco Pharma API Limited
Statement of Financial Position
As at June 30, 2019
ASSETS
Notes
June 30, 2019
June 30, 2018
Amount in Taka
Non-current assets
Advance against purchase of Land
Current assets
Cash and cash equivalents
Total assets
EQUITY AND LIABILITIES
Shareholders’ equity
Issued Share Capital
Retained Earnings
Current liabilities
Accounts Payable
Audit Fees Payable
4
5
20,000,000
20,000,000
-
-
35,525
35,525
20,049,365
20,049,365
20,035,525
20,049,365
18,862,199
20,000,000
(1,137,801)
1,173,326
1,133,326
40,000
18,909,192
20,000,000
(1,090,808)
1,140,173
1,120,173
20,000
TOTAL EQUITY AND LIABILITIES
20,035,525
20,049,365
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
Date: August 11, 2019
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
170 | Annual Report 2018-19 | Financial Statements-Beximco Pharma API Limited
Beximco Pharma API Limited
Statement of Profit or Loss and Other Comprehensive Income
For the year ended June 30, 2019
Revenue
Cost of Revenue
Gross Operating Profi t/(Loss)
Administrative Expenses
Profit/(Loss) from Operations
Income Tax Expense
Net Profit/(Loss) after Tax
Other Comprehensive Income
Notes
2018-2019
2017-2018
Amount in Taka
6
-
-
-
-
-
-
(46,993)
(46,993)
-
(1,090,808)
(1,090,808)
-
(46,993)
(1,090,808)
-
-
Total Comprehensive Income/(Loss) for the year
(46,993)
(1,090,808)
The notes are an integral part of the financial statements.
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
Date: August 11, 2019
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Beximco Pharma API Limited | Annual Report 2018-19 | 171
Beximco Pharma API Limited
Statement of Changes in Equity
For the year ended June 30, 2019
Particulars
Balance as on July 01,2018
Net Loss for the year
Balance as on June 30, 2019
Number of Shares
Net Assets value per shares
For the Period ended June 30,2018
Particulars
Paid-up Share Capital
Net Loss for the period
Balance as on June 30, 2018
Number of Shares
Net Assets value per shares
The notes are an integral part of the financial statements.
Amount in Taka
Share Capital
Retained Earnings
Total
20,000,000
(1,090,808)
18,909,192
-
(46,993)
(46,993)
20,000,000
(1,137,801)
18,862,199
2,000,000
9.43
Amount in Taka
Share Capital
Retained Earnings
Total
20,000,000
-
20,000,000
-
(1,090,808)
(1,090,808)
20,000,000
(1,090,808)
18,909,192
2,000,000
9.45
S.M. Rabbur Reza
Managing Director
Dhaka
Date: August 11, 2019
172 | Annual Report 2018-19 | Financial Statements-Beximco Pharma API Limited
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharma API Limited
Statement of Cash Flows
For the year ended June 30, 2019
Cash Flows from Operating Activities:
Payments for expenses & others
Net Cash Used in Operating Activities
Cash Flows from Investing Activities:
Advance against purchase of Land
Net Cash Used in Investing Activities
Cash Flows from Financing Activities:
Cash proceeds from issuing shares
Net Cash Generated from Financing Activities
Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at the beginning of the Year
Amount in Taka
2018-2019
2017-2018
(13,840)
(13,840)
49,365
49,365
(20,000,000)
(20,000,000)
-
-
-
-
(20,013,840)
20,049,365
20,000,000
20,000,000
20,049,365
-
Cash and Cash Equivalents at the end of the Year
35,525
20,049,365
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
Date: August 11, 2019
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Beximco Pharma API Limited | Annual Report 2018-19 | 173
Beximco Pharma API Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2019
1. Reporting Entity
1.01 Statutory Background of the Company
Beximco Pharma API Limited was incorporated in Bangladesh on December 12, 2017 as a Private Limited Company under the
Companies Act, 1994. The Company is a fully-owned subsidiary of Beximco Pharmaceuticals Limited (BPL).
1.02 Nature of Business Activities
The company intends to set up a facility at API Industrial Park to manufacture Active Pharmaceutical Ingredients (APIs) for domestic and
International markets. However, the Company is still in the initial phase of establishment and has carried out no operational activities.
2. Basis of Preparation
2.01 Basis of Measurement
The financial statements have been prepared under historical cost convention which does not take into consideration the effect of
inflation.
2.02 Statement of Compliance
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1994 and International
Financial Reporting Standards (IFRSs), and other relevant and applicable local laws and regulations.
2.03 Presentation of Financial Statements
The financial statements comprise of:
a) a Statement of Financial Position as at June 30, 2019;
b) a Statement of Profit or Loss and other Comprehensive Income for the year ended June 30, 2019;
c) a Statement of Changes in Shareholders’ Equity for the year ended June 30, 2019;
d) a Statement of Cash Flows for the year ended June 30, 2019 and
e) Notes, comprising summary of significant accounting policies and explanatory information.
2.04 Reporting Period
Financial Statements of the company cover the period of 12 months from July 01, 2018 to June 30, 2019.
3. 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.
174 | Annual Report 2018-19 | Financial Statements-Beximco Pharma API Limited
4. Cash and Cash Equivalents
This represents Cash at Bank with Current Account
(IFIC Bank Limited, Dhanmondi Branch)
5. Issued Share Capital
A. Authorized:
Amount in Taka
June 30, 2019
June 30, 2018
35,525
35,525
20,049,365
20,049,365
100,000,000 Ordinary Shares of taka 10 each
1,000,000,000
1,000,000,000
B. Issued and Paid-up:
1,000,000,000
1,000,000,000
2,000,000 Ordinary Shares of taka 10 each paid in cash
20,000,000
20,000,000
C. Composition of Shareholding of Ordinary Shares
Beximco Pharmaceuticals Limited
S.M. Rabbur Reza
6. Administrative Expenses
Legal Expenses
Audit Fees
Bank Charges
S.M. Rabbur Reza
Managing Director
Dhaka
Date: August 11, 2019
20,000,000
20,000,000
No. of Shares % of Shares Capital
1,999,990
10
2,000,000
99.9995
0.0005
100
2018-2019
2017-2018
13,153
20,000
13,840
46,993
1,070,173
20,000
635
1,090,808
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Beximco Pharma API Limited | Annual Report 2018-19 | 175
Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
NOTICE OF THE FORTY-THIRD ANNUAL GENERAL MEETING
Notice is hereby given that the 43rd Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held on Saturday,
the 21st December, 2019 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, 2019 together with
reports of the Auditors and the Directors thereon.
2. To declare 15% Cash Dividend.
3. To elect Directors.
4. To confirm the re-appointment of Managing Director.
5. To appoint Auditors for the year 2019-20 and to fix their remuneration.
6. To appoint Corporate Governance Compliance Auditor for the year 2019-20 and to fix remuneration.
By order of the Board,
Dated: November 18, 2019
(MOHAMMAD ASAD ULLAH, FCS)
Executive Director & Company Secretary
NOTES:
(1) The Shareholders whose names will appear in the Share Register of the Company or in the Depository Register on the record date i.e.
25 November, 2019, 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.
176 | Annual Report 2018-19 | Notice of Annual General Meeting
Annual General Meeting Information
Date: Saturday, the 21st December, 2019
Time: 10.30 a.m.
Venue: Beximco Industrial Park, Sarabo, Kashimpur, Gazipur
AGM Location Map
Beximco Industrial Park
Sarabo, Kashimpur, Gazipur
NOTES
Proxy Form
BEXIMCO PHARMACEUTICALS LIMITED
17, DHANMONDI R/A, ROAD NO. 2, DHAKA-1205, BANGLADESH
I/We ………………………………………………………..of……………………………………………..…………………………………
………being a member of Beximco Pharmaceuticals Limited hereby appoint Mr./Ms./Miss………………………………………………………
……………………...............of……………………………………………………………………………………………as my proxy to attend
and vote for me on my behalf at the 43rd Annual General Meeting of the Company to be held on Saturday, the 21st December, 2019 at 10.30 a.m. at
Beximco Industrial Park, Sarabo, Kashimpur, Gazipur and at any adjournment thereof.
As witness my hand this……………………………..day of December, 2019.
Signed by the said in presence…………………………………………………………
Revenue
Stamp
Tk. 20.00
………………………………….. ………………………………………………..............................
(Signature of Proxy) Signature of Shareholder(s)
Dated: ……………………….. Register Folio / BOID No.: …………………………………………………..
………………………….....
(Signature of Witness)
Dated: ……………………………
Note: A member entitled to attend and vote at the Annual General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy Form, duly
stamped, must be deposited at the Registered Office of the Company not later than 48 hours before the time fixed for the meeting.
Signature Verified
…………………………………
Authorised Signatory
BEXIMCO PHARMACEUTICALS LIMITED
SHAREHOLDERS’ ATTENDANCE SLIP
I hereby record my attendance at the 43rd Annual General Meeting being held on 21st December, 2019 at 10.30 a.m. at Beximco Industrial Park, Sarabo,
Kashimpur, Gazipur.
Name of Member/Proxy………………………………………………………………...........................................................................................
BO ID/Register Folio No. ………………............holding of ……….....................................…...ordinary Shares of Beximco Pharmaceuticals Limited.
…………………………………………………….
Signature(s) of Shareholder/Proxy
N.B. Please present this slip at the reception desk. Children and non-members will not allowed at the AGM.
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BEXIMCO PHARMACEUTICALS LIMITED