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ANNUAL REPORT
2019-20
EXCELLENCE IN PHARMA:
INNOVATION IN RESPONSE TO COVID-19
WINNER
2020
BEXIMCO
PHARMACEUTICALS
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ANNUAL REPORT
2019-20
BEXIMCO PHARMACEUTICALS LIMITED
Contents
Our Essence
About the Company
Corporate Information
Our Journey
Our Products
Our Market
Our Manufacturing Capabilities
Our Global Accreditations
Board and Management
The Board of Directors
Audit Committee
Nomination and Remuneration Committee
Executive Committee
Directors’ Profile
Executive Committee
Management Committee
Highlights- 2019-20
Financial Highlights
Operational Highlights
Post Period Highlights
Accolades and Awards
Our People
Environment, Health and Safety (EHS)
Our CSR Initiatives
Corporate Events
Chairman’s Statement
Management Discussion and Analysis
Report of the Directors to the Shareholders
Report of the Audit Committee
Activities and other Details of Nomination and
Remuneration Committee (NRC)
Investor Relations
Value Added Statement
Consolidated Financial Statements
47
52
56
58
62
78
80
82
85
86
Financial Statements- Beximco Pharma- Standalone
109
Nuvista Pharma Limited
Directors’ Report to the Shareholders
Financial Statements- Nuvista Pharma Limited
Beximco Pharma API Limited
Directors’ Report to the Shareholders
147
149
176
Financial Statements- Beximco Pharma API Limited
177
Notice of Annual General Meeting
Frequently Asked Questions (FAQs)
Proxy Form
185
186
187
05
07
09
10
13
20
21
24
26
26
26
26
27
31
32
34
35
36
37
41
44
•
•
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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.
Our Essence
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.
Our Essence | Annual Report 2019-20 | 5
About the Company
Beximco Pharmaceuticals Limited 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 Pharma began manufacturing of these products under licensing arrangement and in 1983 launched its own
formulation brands. From that humble beginning, Beximco Pharma has grown from strength to strength. Today, it has become
an emerging global generic pharma company in the region. The Company’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. It remains the only Company in the country to win the highly prestigious SCRIP Award as
the “Best Pharma Company in an Emerging Market” and also won CPhI Pharma Awards 2020 for “Innovation in Response to
COVID-19.” It also has the unique distinction as the only Bangladeshi Company listed on the AIM of London Stock Exchange.
In 2018, Beximco Pharma acquired majority stake in Nuvista Pharma (formerly Organon Bangladesh), a leading hormone and
steroid manufacturer in the country.
The Company currently employs more than 4,700 employees including pharmacists, doctors, engineers, chemists, microbiologists,
accountants, business graduates and other white collar professionals.
About the Company | Annual Report 2019-20 | 7
Corporate Information
Registered Office
17 Dhanmondi R/A, Road No. 2
Dhaka- 1205, Bangladesh
Phone: +880-2-58611891
Fax: +880-2-58613470
E-mail: beximchq@bol-online.com
Factory
Tongi Plant
126 Kathaldia, Auchpara, Tongi
Gazipur-1711, Bangladesh
Stock Exchange Listing
Dhaka Stock Exchange Ltd.
Chittagong Stock Exchange Ltd.
AIM of London Stock Exchange plc
Legal Advisor
Huq & Co.
47/1 Purana Paltan
Dhaka-1000, Bangladesh
Subsidiaries
Nuvista Pharma Limited
Registered Office
Mascot Plaza, 8th Floor
107/A, Sonargaon Janapath; Sector- 7
Uttara C.A, Dhaka - 1230, Bangladesh
Phone: +880-2-58952811,
Associates
BioCare Manufacturing Sdn Bhd
Seri Iskandar Pharmaceutical Park
32600 Bota, Perak, Malaysia
Operational Headquarters
19 Dhanmondi R/A, Road No. 7, Dhaka- 1205, Bangladesh
Phone: +880-2-58611001
Fax: +880-2-58614601
E-mail: info@bpl.net
Website: www.beximcopharma.com
Kaliakoir Plant
Plot No. 1070/1083, Mouchak, Kaliakoir, Gazipur
Bangladesh
FTI Consulting LLP
200 Aldersgate
Aldersgate Street, London EC1A 4HD
United Kingdom
Bankers
Janata Bank Ltd.
AB Bank Ltd.
First Security Islami Bank Ltd.
Dhaka Bank Ltd.
Public Relations
IMPACT PR
Apartment No. A-1, House No. 17,
Road No. 4, Gulshan-1,
Dhaka-1212, Bangladesh
Auditors
M. J. Abedin & Co.
Chartered Accountants
National Plaza (3rd Floor),
109, Bir Uttam C. R. Datta Road
Dhaka- 1205, Bangladesh
Beximco Pharma API Limited
Registered Office
17 Dhanmondi, Road No. 2
Dhaka-1205, Bangladesh
Corporate Information | Annual Report 2019-20 | 9
Our Journey
1983
Launched own
formulation brands
2005
Got listed on the
Alternative Investment
Market (AIM) of London
Stock Exchange (LSE)
through issuance of GDRs
1976
Company
incorporated
1993
Commenced formulation
product export to Russia
2008
(cid:127) GMP accreditation from
TGA, Australia
(cid:127) Gulf Central Committee
for Drug Registration
(GCC), as the first
Bangladeshi Company
2011
Received GMP
accreditation from
AGES, Austria (for
European Union)
2018-19
Won the Scrip Award
in the category of
‘‘Community Partnership
of the Year’’
2014
(cid:127) GMP accreditation
from Taiwan Food &
Drug Administration
(TFDA)
and Health Canada
(cid:127) Commenced export to
Australia
2016-17
(cid:127) Commenced export
to the USA.
(cid:127) First overseas
collaboration with
BioCare Manufacturing
Sdn Bhd, Malaysia
2003
Introduced anti-retroviral
(ARV) drugs first time
in Bangladesh
1980
Started manufacturing
products of Bayer AG,
Germany and Upjohn
Inc., USA, under
license agreements
1985
Listed on Dhaka
Stock Exchange
2006
Launched CFC free
HFA inhalers first time
in Bangladesh
10 | Annual Report 2019-20 | Our Journey
2013
Commenced first time
export to Europe
2015-16
(cid:127) GMP approval from the
U.S. FDA as the first
Bangladeshi company
(cid:127) Launched generic
version of revolutionary
hepatitis C drugs
Sovaldi® and Harvoni®
(cid:127) Entered the Gulf
pharma market (Kuwait)
2019-20
(cid:127) GMP approval from
German Regulatory
Authority and Malta
Medicines Authority
(European Union)
(cid:127) Global Generics &
Biosimilars Awards 2019 as
“The Company of the Year,
(cid:127) CPhI Pharma Awards
2020 for “Innovation in
response to COVID-19”
2017-18
(cid:127) Won the Scrip Award in
the category of “Best
Company in an Emerging
Market”
received WHO
prequalification
(cid:127) Acquired 85.22% stake in
Nuvista Pharma Limited
(cid:127) Oral solid dosage facility
Asia-Pacific”
1983
Launched own
formulation brands
2005
Got listed on the
Alternative Investment
Market (AIM) of London
Stock Exchange (LSE)
through issuance of GDRs
1976
Company
incorporated
1993
Commenced formulation
product export to Russia
2008
(cid:127) GMP accreditation from
TGA, Australia
(cid:127) Gulf Central Committee
for Drug Registration
(GCC), as the first
Bangladeshi Company
2011
Received GMP
accreditation from
AGES, Austria (for
European Union)
2018-19
Won the Scrip Award
in the category of
‘‘Community Partnership
of the Year’’
2014
(cid:127) GMP accreditation
from Taiwan Food &
Drug Administration
(TFDA)
and Health Canada
(cid:127) Commenced export to
Australia
2016-17
(cid:127) Commenced export
to the USA.
(cid:127) First overseas
collaboration with
BioCare Manufacturing
Sdn Bhd, Malaysia
2003
Introduced anti-retroviral
(ARV) drugs first time
in Bangladesh
1980
Started manufacturing
products of Bayer AG,
Germany and Upjohn
Inc., USA, under
license agreements
1985
Listed on Dhaka
Stock Exchange
2006
Launched CFC free
HFA inhalers first time
in Bangladesh
2013
Commenced first time
export to Europe
2015-16
(cid:127) GMP approval from the
U.S. FDA as the first
Bangladeshi company
(cid:127) Launched generic
version of revolutionary
hepatitis C drugs
Sovaldi® and Harvoni®
(cid:127) Entered the Gulf
pharma market (Kuwait)
2019-20
(cid:127) GMP approval from
German Regulatory
Authority and Malta
Medicines Authority
(European Union)
(cid:127) Global Generics &
Biosimilars Awards 2019 as
“The Company of the Year,
Asia-Pacific”
(cid:127) CPhI Pharma Awards
2020 for “Innovation in
response to COVID-19”
2017-18
(cid:127) Won the Scrip Award in
the category of “Best
Company in an Emerging
Market”
(cid:127) Oral solid dosage facility
received WHO
prequalification
(cid:127) Acquired 85.22% stake in
Nuvista Pharma Limited
Our Journey | Annual Report 2019-20 | 11
Beximco Pharma became the first company in the world
to launch generic version of Remdesivir, the most
anticipated treatment of COVID-19. It gives hope to the
healthcare professionals and patients to fight this
unprecedented disease.
Beximco Pharma offers
Our Products
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 created
strong differentiation for the Company. Many of its brands remain consistent leaders in their respective therapeutic categories.
The Company continuously explores and expands its product portfolio to ensure access to newer, better treatment options at
affordable cost. Amdocal, Atova, Azmasol, Bexitrol-F, Bextram Gold, Bizoran, D-Rise, Glipita, Napa, Napa Extra, Neofloxin, 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 for the Company. The Company also focuses on strengthening API
portfolio and its pipeline includes a number of patented, high value products.
Our Leading Brands
Analgesics
NAPA
Tablet
Syrup
Paracetamol 500 mg
Paracetamol 120 mg / 5 ml
Suspension
Paracetamol 120 mg / 5 ml
Drops
Paracetamol 80 mg / ml
Suppository
Paracetamol 125 mg, 250 mg And 500 mg
Injection
Paracetamol 10 mg / ml
NAPA EXTRA
NAPA EXTEND
NAPADOL
NAPA RAPID
Tablet
Tablet
Tablet
Tablet
Paracetamol 500 mg + Caffeine 65 mg
Paracetamol 665 mg Extended Release
Paracetamol 325 mg + Tramadol 37.5 mg
Paracetamol 500 mg (with Actizorb technology)
Antacids
DIGECID PLUS
Suspension Magaldrate 480 mg + Simethicone 20 mg / 5 ml
Oral Anti-Diabetic
VISCOCID
GLIPITA
GLIPITA M
TRANETA
TRANETA M
JARDIAN
JARDIMET
VIBOSE
INFORMET
Suspension
Sodium Alginate 500 mg + Potassium Bicarbonate 100 mg / 5 ml
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Sitagliptin 50 mg, Sitagliptin 100 mg
Sitagliptin 50 mg + Metfomin Hydrochloride 500 mg, Sitagliptin
50 mg + Metformin Hydrochloride 1000 mg
Linagliptin 5 mg
Linagliptin 2.5 mg + Metformin Hydrochloride 500 mg, Linaglip-
tin 2.5 mg + Metformin Hydrochloride 850 mg, Linagliptin 2.5 mg
+ Metformin Hydrochloride 1000 mg
Empagliflozin 10 mg, Empagliflozin 25 mg
Empagliflozin 5 mg + Metformin Hydrochloride 500 mg
Voglibose 0.2 mg, Voglibose 0.3 mg
Metfomin Hydrochloride 500 mg, Metfomin Hydrochloride 500
mg LA, Metformin Hydrochloride 850 mg, Metformin Hydrochlo-
ride 1000 mg
Our Products | Annual Report 2019-20 | 13
Anti-Histamines
ATRIZIN
AXODIN
DUVENT
Anti-Hypertensives
BIZORAN
OLMESAN
Tablet
Syrup
Drops
Tablet
Cetirizine Hydrochloride 10 mg
Cetirizine Hydrochloride 5 mg / 5 ml
Cetirizine Hydrochloride 2.5 mg / ml
Fexofenadine HCl 120 mg, Fexofenadine HCl 180 mg
Suspension
Fexofenadine HCl 30 mg / 5 ml
Tablet
Syrup
Tablet
Tablet
Rupatadine 10 mg
Rupatadine 5 mg / 5 ml
Amlodipine 5 mg + Olmesartan Medoxomil 40 mg, Amlodipine 5
mg + Olmesartan Medoxomil 20 mg
Olmesartan Medoxomil 10 mg, Olmesartan Medoxomil 20 mg,
Olmesartan Medoxomil 40 mg
Anti-Infectives
OLMESAN PLUS
Tablet
Olmesartan Medoxomil 20 mg + Hydrochlorothiazide 12.5 mg
AMDOCAL
Tablet
Amlodipine 5 mg, Amlodipine 10 mg
AMDOCAL PLUS
Tablet
Amlodipine 5 mg + Atenolol 25 mg, Amlodipine 5 mg + Atenolol
50 mg
TELMA
TELMACAL
TELMA PLUS
ARLIN
Tablet
Tablet
Tablet
Tablet
Telmisartan 40 mg, Telmisartan 80 mg
Telmisartan 40 mg + Amlodipine 5 mg, Telmisartan 80 mg +
Amlodipine 5 mg
Telmisartan 40 mg + Hydrochlorothiazide 12.5 mg
Linezolid 400 mg, Linezolid 600 mg
Suspension
Linezolid 100 mg / 5 ml
TRIOCIM
Injection
Capsule
Linezolide 2 mg / 2 ml IV Infusion
Cefixime 200 mg, Cefixime 400 mg
Suspension
Cefixime 100 mg / 5 ml, Cefixime 200 mg / 5 ml
TYCLAV
Tablet
Amoxicillin 250mg + Clavulanic Acid 125 mg, Amoxicillin 500 mg
+ Clavulanic Acid 125 mg, Amoxicillin 750 mg + Clavulanic Acid
125 mg
Suspension
Amoxicillin 125 mg + Cavulanic Acid 31.25 mg / 5 ml,
Amoxicillin 400 mg + Clavulanic Acid 57 mg / 5 ml
Injection
Amoxicillin 1 Gm + Clavulanic Acid 200 mg, Amoxicillin 500 mg
+ Clavulanic Acid 100 mg
TURBOCLAV
Tablet
Cefuroxime 250 mg + Clavulanic Acid 62.5 mg, Cefuroxime 500
mg + Clavulanic Acid 125 mg
AZITHROCIN
Tablet
Azithromycin 250 mg, Azithromycin 500 mg
Suspension
Azithromycin 200 mg / 5 ml
Injection
Azithromycin 500 mg IV
FILMET
NEOFLOXIN
Tablet
Syrup
Tablet
Metronidazole 200 mg, Metronidazole 400 mg, Metronidazole
800 mg
Metronidazole 200 mg / 5 ml
Ciprofloxacin 750 mg, Ciprofloxacin 500 mg, Ciprofloxacin 250 mg
Injection
Ciprofloxacin 250 mg / 5 ml
14 | Annual Report 2019-20 | Our Products
Anti-Ulcerants
ACIFIX
OPTON
Tablet
Tablet
Capsule
Injection
Rabeprazole 20 mg
Esomeprazole 20 mg, Esomeprazole 40 mg
Esomeprazole 20 mg, Esomeprazole 40 mg
Esomeprazole 40 mg
PANTOBEX
Tablet
Pantoprazole 20 mg, Pantoprazole 40 mg
CNS
Cough & Cold
PROCEPTIN
YAMADIN
FRENXIT
NERVALIN
EMIJOY
DEXTRIM
TUSPEL
MUCOSOL
Injection
Capsule
Injection
Tablet
Tablet
Pantoprazole 40 mg
Omeprazole 20 mg, Omeprazole 40 mg
Omeprazole 40 mg
Famotidine 20 mg, Famotidine 40 mg
Flupentixol 0.5 mg + Melitracen 10 mg
Capsule
Pregabalin 25 mg, Pregabalin 50 mg, Pregabalin 75 mg
Tablet
Syrup
Syrup
Syrup
Drops
Chlordiazepoxide 5 mg + Amitriptyline Hcl 12.5 mg
Dextromethorphan Hydrobromide 20 mg + Phenylephrine
Hydrochloride 10 mg + Triprolidine Hydrochloride 2.5 mg / 5 ml
Guaifenesin 200 mg + Dextromethorphan Hydrobromide 15 mg
+ Menthol 15 mg / 5 ml
Ambroxol Hydrochloride 15 mg / 5 ml
Ambroxol Hydrochloride 6 mg / ml
Anti-Fungals
OMASTIN
Capsule
Fluconazole 150 mg, Fluconazole 200 mg, Fluconazole 50 mg
TERBEX
ZYMET
DEFLUX
FEMZOLE
TAMONA
ROSTIL
Enzymes
Gastroprokinetics
Hormones
Antispasmodic
Respiratory
AZMASOL
Suspension
Fluconazole 50 mg / 5 ml
Injection
Fluconazole 2 mg / ml Infusion
Tablet
Cream
Tablet
Tablet
Terbinafine 250 mg
Terbinafine HCl 1%
Pancreatin 325 mg
Domperidone 10 mg, Domperidone 10 mg Meltab
Suspension
Domperidone 5 mg / 5 ml
Drops
Tablet
Tablet
Domperidone 5 mg / ml
Letrozole 2.5 mg
Tamoxifen Citrate 10 mg,Tamoxifen Citrate 20 mg
Capsule
Mebeverine Hydrochloride 200 mg
Tablet
MDI
Mebeverine Hydrochloride 135 mg
Salbutamol 100 mcg / Puff
Respirator
Solution
Salbutamol 2.5 mg / 3 ml Ampoule, Salbutamol 5 mg / ml in
amber glass bottle
BEXITROL-F
MDI
Salmetarol 25 mcg + Fluticasone Propionate 125 mcg,
Salmetarol 25 mcg + Fluticasone Propionate 250 mcg,
Salmeterol 25 mcg + Fluticasone Propinate 50 mcg
Our Products | Annual Report 2019-20 | 15
Respiratory
Insulin
IV Fluids
Laxatives
DPI
MAXHALER
Salmetarol 50 mcg + Fluticasone Propionate 100 mcg,
Salmetarol 50 mcg + Fluticasone Propionate 200 mcg,
Salmeterol 50 mcg + Fluticasone Propinate 500 mcg
Salmetarol 50 mcg + Fluticasone Propionate 100 mcg,
Salmetarol 50 mcg + Fluticasone Propionate 200 mcg,
Salmeterol 50 mcg + Fluticasone Propinate 500 mcg
DECOMIT
MDI
DECOMIT PLUS
MDI
SYMBION
DPI
Beclomethasone Dipropionate (100 mcg / Puff), Beclomethasone
Dipropionate (50 mcg / Puff)
Beclomethasone Dipropionate 100 mcg + Formoterol Fumarate
6 mcg, Beclomethasone Dipropionate 200 mcg + Formoterol
Fumarate 6 mcg
Formoterol Fumarate 6 mcg + Budesonide 100 mcg, Formoterol
Fumarate 6 mcg + Budesonide 200 mcg
MAXHALER
Formoterol Fumarate Dihydrate 12 mcg + Budesonide 400 mcg
TIORIVA
DECOMIT
NASOMET
PERINASE
DYNASE
TOFEN
MONOCAST
FIXOLIN
MUCOMIST
GENSULIN
DEXAQUA
DEXORIDE
SALORIDE
FRELAX
DPI
Tritropium Bromide 18 mcg
Nasal Spray
Beclomethasone Dipropionate 100 mcg / Actua
Nasal Spray Mometasone Furoate 50 mcg / Actuation
Nasal Spray
Fluticasone Propionate 50 mcg / Actuation
Nasal Spray
Azelastine hydrochloride 137 mcg + Fluticasone propionate 50
mcg / Actuation
Tablet
Syrup
Tablet
Sachet
Tablet
Tablet
Respirator
Solution
Injection
Injection
Injection
Injection
Ketotifen Fumarate 1mg
Ketotifen 1 mg / 5 ml
Montelukast 4 mg, Montelukast 5 mg, Montelukast 10 mg
Montelukast 4 mg
Doxofylline 200 mg, Doxofylline 400 mg
Acetylcysteine 600 mg
Acetylcysteine 600 mg / 3 ml Ampoule
Human Insulin 100 IU / ml Injection
Dextrose 10% W/V, Dextrose 5% W/V
NaCl 0.9% W/V & Dextrose 5% W/V
Sodium Chloride 0.09% W/V
Suspension
Liquid Paraffin 1.25 ml + Magnesium Hydrochloride 300 mg / 5
ml
SERELOSE
Solution
Lactulose 3.35 gm / 5 ml
Lipid Lowering
Joint Supplement
Muscle Relaxant
NSAIDs
ATOVA
ROSUTIN
JOINTEC MAX
RELENTUS
DINOVO
Tablet
Tablet
Tablet
Tablet
Tablet
Atorvastatin 10 mg, Atovastatin 20 mg, Atovastatin 40 mg
Rosuvastatin 5 mg, Rosuvastatin 10 mg, Rosuvastatin 20 mg
Glucosamine 750 mg + Diacerein 50 mg
Tizanidine 2 mg
Naproxen 375 mg + Esomeprazole 20 mg, Naproxen 500 mg +
Esomeprazole 20 mg
VOLIGEL
Cream
Diclofenac Sodium 50 mg
16 | Annual Report 2019-20 | Our Products
Ophthalmic
Urogenital
Vitamins &
Minerals
XIDOLAC
ZOLFIN
ODYCIN
TEARON
Tablet
Injection
Tablet
Ketorolac Tromethamine 10 mg
Ketorolac Tromethamine 30 mg / ml
Aceclofenac 100 mg
Eye Drops
Moxifloxacin 0.5%
Eye Drops
Polyethylene Glycol 400 0.4% + Propylene Glycol 0.3%
TEARON FRESH
Eye Drops
Caboxymethyl Cellulose Sodium 1%
VIVIS
URAL-K
Capsule
Solution
Antioxidants & Minerals
Potassium Citrate 1500 mg + Citric Acid Monohydrate 250 mg /
5 ml Solution
UROFLO
Capsule
Tamsulosin Hydrochloride 0.4 mg
UROFLO PLUS
Capsule
Tamsulosin Hydrochloride 0.4 mg + Dutasteride 0.5 mg
BEXTRAM GOLD
Tablet
High Potency 32 Multivitamin-Mineral
BEXTRAM SILVER Tablet
High Potency 30 Multivitamin-Mineral
D-RISE
Capsule
Cholecalciferol 20000 IU, Cholecalciferol 40000 IU
HEMOFIX FZ
NEUROCARE
CALORATE
Tablet
Tablet
Tablet
Tablet
Cholecalciferol 2000 IU
Elemental Iron 48 mg (Ferrous Ascorbate), Folic Acid 0.5 mg And
Elemental Zinc 22.5 mg Tab
Vitamin B1, B6, and B12
Calcium Orotate 400 mg, Calcium Orotate 740 mg
Our product portfolio color
Anti Allergy & Cough and Cold
Analgesic & Musculoskeletal
Anti-Infective
CNS
CVS & Lipid Lowering
Endocrine
GI
IV Fluids
Opthalmics
Others
Respiratory
Anti-Fungal
Vitamins
Major Active Pharmaceutical Ingredients (APIs)
APIXABAN
LINAGLIPTIN
• RIVAROXABAN
• ROSUVASTATIN
SITAGLIPTIN
Our Products | Annual Report 2019-20 | 17
•
•
•
Key Products Launched in FY 2019-20
18 | Annual Report 2019-20 | Our Products
Our Products | Annual Report 2019-20 | 19
Our Market
We are a leading player in Bangladesh with over 8.5% share of country’s Taka 230
billon pharma market. The Company over the years has emerged as a dominant
exporter with its footprint in more than 50 countries across all continents. We are the
only Bangladeshi company exporting medicines to the United States, the largest and
most stringent pharma market in the world. While our current revenue predominantly
comes from the domestic market, we have a strategic focus on export with an
ambition to achieve export-led growth in the longer term.
11%
Export
Domestic
89%
2019-20 (Net Sales)
Export Destination
South Asia
Afganisthan
Bhutan
Cambodia
Maldives
Myanmar
Nepal
Pakistan
Sri Lanka
Vietnum
Asia Pacifi c +CIS
Africa
Ajerbaijan
Hong Kong
Indonesia
Laos
Malaysia
Philipines
Singapore
Taiwan
Thailand
Uzbekistan
Middle East
Iraq
Jordan
Lebanon
Oman
UAE
Yemen
Botswana
Burundi
Ethiopia
Ghana
Guniea Conakry
Ivory Coast
Kenya
Lesotho
libya
Mali
Mauritius
Mozambique
Namibia
Nigeria
Somalia
South Africa
Tanzania
Uganda
Zambia
Zimbabwe
20 | Annual Report 2018-19 | Our Market
Europe
Austria
Germany
Netherlands
Romania
North Amercia
Canada
USA
Australia
Australia
Fiji
Kiribati
Tonga
Australia
South Asia
Africa
Rest of the World
North America
Latin &
Central America
Belize
Chile
Columbia
Costa rica
Domincian Republic
Ecuador
Guatemala
Guyana
Honduras
Jamaica
Netherland Antilis
Nicaragua
Panama
Peru
Suriname
T&T
Venezulea
5%
14%
17%
17%
47%
Region Wise Export (2019-20)
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.
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.
Our Manufacturing Capabilities | Annual Report 2019-20 | 21
Oral Solid Dosage (OSD)
Semi Solid and Liquid (SSL)
Sterile Production (STP)
Oral Solid Dosage (OSD)
• Two units (OSD-1 and OSD-2); Tablets, Capsules, Powder for Suspension, Sachets and Oral Soluble Films
• Capacity: Tablets-3,556 million, Capsules-223 million, Powder for Suspension-1.86 million bottles, Sachets- 4 million units
and Oral Soluble Films- 0.52 million units
Semi Solid and Liquid (SSL)
• One unit; Large and Small Volume Liquids, Cream & Ointment, Shampoo & Lotion and Suppository
• Capacity: Liquids-41.28 bottles, Cream & Ointment-3.2 million tubes, Shampoo & Lotion- 0.25 million bottles and
Suppository-10.20 million pieces
Sterile Production (STP)
• Eight units- Infusion Unit, Amino Acid Unit, Insulin Unit, Nasal Spray and Respiratory Solutions (Non-Steroids), Nasal Spray and
Respiratory Solutions (Steroids), Lyophilized Injection Unit, Prefilled Syringe Unit and Ophthalmic Unit
• Capacity: Infusion Unit-9.84 million bottles, Amino Acid Unit-0.96 million bottles, Insulin Unit-3 million vials and cartridges,
Nasal Spray and Respiratory Solutions (Non-Steroids)- 4.32 million ampules, Nasal Spray and Respiratory Solutions (Steroids)-
2.85 million HDPE containers, Lyophilized Injection Unit-0.93 million vials, Prefilled Syringe Unit-1.92 million units and
Ophthalmic Unit – 4.00 million LDPE containers
22 | Annual Report 2019-20 | Our Manufacturing Capabilities
Inhaler
API
Inhalers
• Two Metered Dose Inhalers (MDI) units, one Dry Powder Inhaler(DPI) Unit and one Multi Dose Dry Powder Inhaler (mDPI) Unit
• Capacity: MDI- 14 million Cans, DPI- 60 million Capsules and mDPI-12 million units
Penicillin
• One unit, Manufactures Capsules and Dry Syrups
• Capacity: Capsules - 3.06 million and Dry Syrups- 42.24 million bottles
Active Pharmaceutical Ingredients (APIs)
• Two units- API -1 and API-2. Manufactures small volume APIs
• Capacity 9.05 MT
Our Manufacturing Capabilities | Annual Report 2019-20 | 23
Our Global Accreditations
Benchmarked to the highest global regulatory standards, Beximco Pharma’s manufacturing facilities have been audited and
approved by the following major global agencies:
• U.S. FDA
• Therapeutic Goods Administration (TGA), Australia
• Malta Medicines Authority (European Union)
• German Regulatory Authority (Regierungspräsidiums Tübingen)
• Health Canada
• Gulf Central Committee (GCC)
• World Health Organization (WHO)
24 | Annual Report 2019-20 | Our Global Accreditations
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
Mamtaz Uddin Ahmed
Shah Monjurul Hoque
Mohammad Asad Ullah, FCS
Chairman
Vice Chairman
Managing Director
Director
Director
Director
Independent Director
Independent Director
Company Secretary
Audit Committee
Mamtaz Uddin Ahmed
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
26 | Annual Report 2019-20 | Board and Management
Directors’ Profi le
Ahmed Sohail Fasihur Rahman
Chairman
Salman Fazlur Rahman MP
Vice 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 fi rst private sector university
in Bangladesh.
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 sector conglomerate.
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 infl uential 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.
Board and Management | Annual Report 2019-20 | 27
Nazmul Hassan MP
Managing Director
Mr. Nazmul Hassan MP is the Managing Director of Beximco Pharmaceuticals Limited and the
Chairman of Nuvista Pharma Ltd. and Beximco Pharma API 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 Infl uential 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 40 years and is currently the Director of Group Finance and Corporate
Affairs, Chief Executive Offi cer 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 48 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.
28 | Annual Report 2019-20 | Board and Management
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 48 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.
Mamtaz Uddin Ahmed
Independent Director
Professor Mamtaz Uddin Ahmed FCMA has joined Beximco Pharmaceuticals Limited as an
Independent Director in July 2020. He is currently the Professor of the Department of Accounting
and Information Systems, Chairman of the Bureau of Business Research and the Treasurer of the
University of Dhaka, Bangladesh. Professor Ahmed is also an experienced Board member, currently an
Independent Director in the Board of Ashuganj Power Station Company Ltd. owned by the government
of Bangladesh. His previous Board positions include Director of the Chittagong Stock Exchange Ltd.
and Director of the Dhaka Stock Exchange Ltd. Professor Ahmed is the former President of the Institute
of Cost and Management Accountants of Bangladesh (ICMAB).
Professor Ahmed obtained his Bachelor and Masters in Accounting from University of Dhaka. He also
obtained MBA from University of Castle, USA and CMA degree from ICMAB, 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 fi rm in
Bangladesh, of which he is the Proprietor (a position equivalent to that of a director). He has held
various academic appointments in the fi eld 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, FCS
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 University of Dhaka. He also holds an MBA with
major in Human Resource Management.
Mr. Asad Ullah qualifi ed 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.
Board and Management | Annual Report 2019-20 | 29
At Beximco Pharma, we strive to do what matters most to patients: provide
high quality, contemporary treatment options and make them affordable.
Executive Committee
Executive Committee comprises of fi ve 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 Offi cer
Mr. Rabbur Reza, the Chief Operating Offi cer of the Company, has 25 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 Ltd. and of Beximco Pharma API Ltd.
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 Offi cer
Mr. Mohammad Ali Nawaz qualifi ed 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 is also the Director of Nuvista Pharma Ltd. and Beximco
Pharma API Ltd. He possesses diversifi ed 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.
Currently he is also serving as the Director of Beximco Pharma API Ltd.
He worked for Sanofi -Aventis as Director Marketing of its Bangladesh business overseeing the
marketing operations of several business units.
Board and Management | Annual Report 2019-20 | 31
Management Committee
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Rabbur Reza
Chief Operating Offi cer
Mohammad Ali Nawaz
Chief Financial Offi cer
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
M A Arshad Bhuiyan
General Manager
Human Resource
32 | Annual Report 2019-20 | Board and Management
Afsar Uddin Ahmed
Director, Commercial
Rizvi Ul Kabir
Director, Marketing
Lutfur Rahman
Director, Manufacturing
Shamim Momtaz
Director, Manufacturing
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
Shawkat Haider, Ph D
Executive Director, Business Development
& Corporate Affairs
Board and Management | Annual Report 2019-20 | 33
Highlights 2019-20
Financial Highlights
Net Sales
Domestic Sales
Export Sales
12.3% to BDT 25,611.9m (2019-20)
(2018-19: BDT 22,816.6m)
12.5% to BDT 22,860.1m (2019-20)
(2018-19: BDT 20,314.0m)
10.0% to BDT 2,751.8m (2019-20)
(2018-19: BDT 2,502.6m)
Profit After Tax
16.6% to BDT 3,544.4m (2019-20)
(2018-19: BDT 3,040.4m)
EPS
Dividend
15.9% to BDT 8.67 (2019-20)
(2018-19: BDT 7.48)
Proposed 15% Cash (BDT 1.50 per share)
and 10% Stock Dividend (2019-20)
(2018-2019: 15% Cash)
34 | Annual Report 2019-20 | Highlights 2019-20
Operational Highlights
Expansion of Domestic Portfolio
• Launched 26 new Products, including
- 4 new products fi rst time in Bangladesh
- Maxhaler mDPI, the generic version of GSK’s Seretide Accuhaler, for the fi rst time in Bangladesh
- Bemsivir, the world’s fi rst generic version of Remdesivir for the treatment of COVID-19
- Virafl u (Favipravir 200mg), a repurposed drug for COVID19 treatment
• Launched 5 new gastrointestinal and hormonal products from subsidiary, Nuvista Pharma, in the domestic market
Export Business
• Completed 63 registrations for 50 products in 20 countries
• Commenced export of Nadolol and Sotalol AF, both cardiovascular drugs, in US market
• Received GMP approval from a German Regulatory Authority and Malta Medicine Authority (European Union)
• Entered four new countries: Maldives, Pakistan, Nicaragua and Dominican Republic
Collaboration
• Signed an exclusive agreement with Mylan (Now Viatris) for distributing a range of biosimilar products in Bangladesh
Highlights 2019-20 | Annual Report 2019-20 | 35
Post-Period Highlights
• Signed an exclusive agreement with the Serum Institute of India Pvt. Ltd (SII), the world’s largest vaccine producer, for
distribution of Oxford/AstraZeneca vaccine AZD1222 for COVID-19 in Bangladesh
• Received highly prestigious CPhl Pharma Award in the category of ‘Innovation in Response to COVID-19’
• Received US Food and Drug Administration (FDA) approval for Flecainide Acetate (50, 100 and 150 mg tablets), an antiarrhythmic
drug used for treating irregular heartbeats in conditions such as tachycardia and atrial fi brillation
• Assigned AAA Long Term Rating ( Indicates Highest Safety for Timely Repayment) by Credit Rating Information and Services
Limited (CRISL) the top credit rating company of the country
36 | Annual Report 2019-20 | Highlights 2019-20
Accolades and Awards
CPhI Pharma Awards 2020 for “Innovation in Response to COVID-19”
Beximco Pharma has been awarded the prestigious CPhl Pharma Award in the category ‘Innovation in Response to COVID-19’ on
October 13, 2020. CPhI Pharma Awards are among the most prestigious recognitions within the pharmaceutical industry judged
by an esteemed panel of industry experts from around the world.
Accolades and Awards | Annual Report 2019-20 | 37
Global Generics & Biosimilars Awards 2019
Beximco Pharma has been recognized
as the “Company of the Year, Asia
Pacifi c” 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
to make
biosimilar
companies,
to
affordable medicines available
more patients across the globe.
Global Generics & Biosimilars Award
Beximco Pharma has been nominated for the Global Generics & Biosimilars Awards 2020
in the categories of “Company of the Year, Asia Pacifi c.” The Global Generics & Biosimilars
Awards recognise the best in the global generics and biosimilars industries. An initiative
of UK based Pharma Intelligence/Informa PLC, world’s leading business intelligence,
academic publishing, knowledge and events group, these prestigious awards reward ‘best
practice’ in the pharma industry.
38 | Annual Report 2019-20 | Accolades and Awards
ABBC Business Excellence Award 2019
Beximco Pharma won the “ABBC Business Excellence Awards 2019” as a recognition for its pharmaceutical export to
Australia and contribution to promoting bilateral trade.
ICMAB Best Corporate Award
Beximco Pharmaceuticals Limited won the third position in pharmaceutical category in the “ICMAB Best Corporate Award-
2018” for excellenc in corporate performance.
Accolades and Awards | Annual Report 2019-20 | 39
Learning and Development Center
Our People
BPL has a dynamic team of over 4,700 people who are the
driving force behind its progress. Our devoted and highly
competent people are our key resource to accomplish our
mission and consistently remain at the centre of our strategy.
We recognize it is our people’s resolute efforts that have driven
us to a greater height over the years. Currently, our strong
pool of expertise includes over 1,500 professionals such as
pharmacists, chemists, doctors, engineers, microbiologists,
researchers, and business graduates.
At Beximco Pharma, we endeavour to create, promote
and sustain an inclusive, high performing and diversified
culture for our employees to promote empowerment and
encourage innovation. We emphasize on enhancing capacity,
strengthening skills, and enabling
their success, both
individually and collectively.
Training and Development
We relentlessly focus on providing learning and development
opportunities
to help our employees achieve career
advancement and attain professional success. To ensure that
our people are empowered and remain responsive to a rapidly
changing world, we provide them with high-quality training
to broaden and enrich their professional competencies.
Throughout the year, we arranged a wide range of training
and professional development programs across different
functional areas on a routine basis. The programs are
designed and tailored for different levels of employees based
on assessment of their needs. The Company has a dedicated
training department manned with experienced professionals
to conduct in-house training. Besides our own expertise, we
invite local and international experts and trainers to conduct
these programs. In order to keep our employees abreast of the
latest developments in different fields, we send our employees
to external training, seminars and workshops arranged at
home and abroad. The Company also has resourceful libraries
and access to online resources for the employees to encourage
self-development.
In 2019-20, 779 employees received 7,284 man-hours of
specialized training in a wide range of areas including technology
transfer, analytical testing and validation, data management
& data integrity, leadership skill, brand management, quality
risk management and quality control. Sixty five employees
received 2,036 man-hours of overseas training in ten different
countries including Germany, Switzerland, Italy and Singapore.
Additionally, individual departments throughout the year
conducted in-plant GMP compliance, Sales skills development
and other similar programs which they do on a regular basis.
Specialised Training Programs 2019-20
Description
Participants
Training Hours
Overseas Training
Local Training
65
714
2,036
5,248
Employment, Retention and Rewards
In Beximco Pharma, we always assert on diversity and adopt
an inclusive management style through which we gain
access to a broader pool of talented workforce and benefits
from their innovative strength. The Company’s employment
and recruitment policy does not contain any discriminative
provision with respect to gender, religion or caste. Currently,
we have 160 female employees working at different levels
from production workers to managerial positions, and two
of them are members of the Company’s seventeen member
Management Committee. Employment of female in the
Our People | Annual Report 2019-20 | 41
pharmaceutical industry of Bangladesh is quite low due to
socio-cultural reasons. The Company has created a specific
segment of the production line to be run exclusively by females
to manifest its commitment of minimizing gender gap. The
proportion of women across all levels of the organization is
increasing gradually. Women are now part of more diverse and
challenging roles compared to the previous years.
safety and health. During this ongoing COVID-19 pandemic,
ensuring uninterrupted production and supply of essential
medicine maintaining health and safety of our employees
were a tough call for us. Since the begining of the pandemic,
we took a series of measures for our employees to provide
maximum protection at workplace and render every support
to them and their family in any medical crisis.
Beximco Pharma offers its employees competitive reward
packages to attract and retain the industry’s most talented
workforce. This well-designed retention program comprises
employee compensation, recognition and reward system,
work life balance, communication and feedback, effective
teamwork, etc. The Company annually revises individual
employee salary based on annual assessment of performance.
Company’s pay and benefit structures are reviewed at longer
intervals to match with the industry trends.
Turnover Rate
6.15
2020
2019
2018
11.85
9.5
Employee Welfare
Beximco Pharma’s employee welfare schemes reinforce its
strong bonding with the employees. The Company carries
out routine health check up of our factory based workers and
has arranged for free of cost doctor’s consultation services
for the members of their families. Under a defined education
scholarship program, the children of our workers receive
education stipends for their outstanding results at different
public examinations and success in enrolling with recognized
universities. This year a total of 65 students received such
financial support. The Company provides lunch at a nominal
charge (free of cost for the workers) to the employees at factory
and head office; arranges annual picnic, cultural programs,
family day events for workers and officers to strengthen inter-
personal relationship and organizes intra and inter-company
sports events for better health and mind.
Support to Employees during Pandemic
We care for our employees and impose highest priority on their
Work from Home, Rotation Attendance and Social
Distancing
During the nationwide lockdown, considering the safety
of our employees, we created Work from Home facility for
our employees. At office-based facilities, employees were
encouraged to work remotely where possible, with the
minimum number of people attending the office. Subsequently
after withdrawal of the lockdown, to keep our work place less
crowded, we encouraged our employees to attend office on
a rotation basis. At the manufacturing sites, we implemented
new work practices to ensure social distancing. At all facilities,
employees were screened upon entry and disinfectants and
masks were made available.
Everyone working for us got their wages on time. We made
full payments to every employee for the leave beyond their
entitlements who were sick, quarantined or in isolation
because of COVID-19.
24 hours Hotline Service for the Employees and Their
Family Members
To provide the best care to our employees and their family
members during the pandemic, 24 hours hotline service
was opened from the begining to respond to all COVID-19
related queries and provide necessary health advice. A team
of qualified in–house doctors and pharmacists engaged to
render the services.
Care for Mental Wellbeing
Our Human Resource Management (HRM) monitoring team
has remained continuously vigilant to monitor mental health
and emotional status of our employees so that they never feel
left alone in this critical time. Our HRM monitoring team made
follow-up calls to sick employees to enquire whether they
require any kind of assistance.
Managing Director of the Company sent gift basket with “Get
Well Soon” card to each COVID-19 positive patient to provide
emotional support.
42 | Annual Report 2019-20 | Our People
Free Medical Tests
Beximco Pharma outsourced the services of a government authorized testing centre for the COVID-19 tests of all suspected
employees and their family at free of cost. We also set up special screening facility in our plant premises.
Free Medicines and Ambulance Services
Employees who have been tested COVID-19 positive were provided all prescribed medicines at free of cost. Two ambulances
were available 24 hours for any emergency need.
Establishing Isolation and Quarantine Centres
We established several isolation and quarantine centres at different locations of the city. COVID-19 positive employees who do
not have isolation facility in their home were placed in the isolation centre for treatment.
Oxygen Cylinder for the Emergency Patient
We arranged a pool of oxygen cylinders when nationwide oxygen cylinders were in extreme scarcity. In emergency medical crisis
of our employees, our trained doctors and technicians rushed home to provide temporary oxygen support till the patients get
admitted to the hospitals.
Emergency Food Support for Employees in Lockdown Zones
We arranged food for the employees, whose residences were under lock down imposed by the government. In some cases
where entire family got infected with COVID-19 we even delivered cooked food at their homes.
Sample Collection Points for COVID-19 Test
We set up few sample collection points so that employees can avoid the hassles and risks of going to the test centres.
Our People | Annual Report 2019-20 | 43
the Bangladesh Energy Regulatory Commission (BERC).
Environment, Health and Safety (EHS)
As a responsible company we are committed to provide a
safe and healthy workplace for our employees, promote
environmental excellence in our operations and meet global
EHS standards. We actively comply with relevant government
regulations, industry standards and other requirements to
which the Company subscribes and preaches vigorously.
Beximco Pharma selects the eco-friendliest technology and
our plant & equipment boasted to have the most state of the
art technology. We regularly review and implement adequate
regulations to ensure the health and safety of our employees,
contractors, visitors and neighbors. The company strives to
reduce environmental footprint, create adequate facilities and
employs appropriate processes to keep the environmental
effects to a practicable minimum level. All our liquid and solid
waste and gaseous emissions generated from our operations
are controlled, disposed and managed in the best practicable
means.
The carbon footprint in the factory surroundings is measured
in regular intervals as per government regulations and is well
within the standard limit. Our last analysis is presented below.
Solid Waste Control and Conduction
The solid waste generated from pharmaceutical manufacturing
operations may have an adverse effect on the environment
and ecological system. Our solid wastes are strictly managed
to comply with the environmental regulations. The entire waste
management is handled with the Best Available Technologies
(BAT) that includes proper cleaning and disposal system
and protocol, dust control units to capture the solid waste
generated during manufacturing process and a solid waste
incineration plant to burn all solid waste including ETP sludge.
Beximco Pharma has installed one of the largest incinerators
having capacity of 250 kg per hour. The Incinerator and its
operating procedures are approved by the DoE.
Environment Sustainability
Measures
Beximco Pharma has been diligently measuring its carbon
footprint and environmental impacts such as quality of
treated water, sound level and air quality in the factory
surroundings and successfully meeting all the standards set
by the Department of Environment (DoE). Our environmental
practices boasted to be voluntarily more advanced than the
regulatory requirements and does not pose any fi nancial risk
to the Company. We are always in compliance with the rules
and regulations set by the regulatory authorities and keep
all licenses and certifi cates updated such as Manufacturing
License, Fire License, Environmental Clearance, Boiler
License, Explosive License, Narcotic License and License from
The Results of Carbon Footprint in the Factory Surroundings- 2018
439
0
0.13
1.9
783
30.52
190.5
5,000
50
5
25
1,000
150
200
CO2
ppm
CO
ppm
NO2
ppm
NO
ppm
TVOC
ppb
PM10
µg/m3
SPM
µg/m3
Government Standard
Result in company surroundings
44 | Annual Report 2019-20 | Environment, Health and Safety (EHS)
Liquid Waste Control and
Conduction
Liquid wastes are primarily generated from fl oor wash,
machineries and utensils wash etc. The other source of liquid
waste consists of dissolved and suspended APIs, excipients,
laboratory reagents and water from cooling tower. Beximco
Pharma has proper protocol on the use of water and waste
water generation in the facility. We have a large modern
waste water treatment plant at our factory site. Waste water
is treated in the ETP and the sludge is incinerated and ensured
that Chemical Oxygen Demand (COD) and Biological Oxygen
Demand (BOD) of the released water are well within the
permissible limit.
The Company has currently undertaken a project to upgrade
the existing ETP through incorporation of PLC based Membrane
Bioreactor MBR technology, and the system is based on the
combination of a suspended biomass reactor and a separation
step on porous membrane fi ltration. Our effi cient MBR
technology based ETP will produce high-quality treated water
along with reduction of space requirement.
We continuously monitor the quality of our discharged water and
always found it to be well below the prescribed limit of DoE.
Tests
pH
TDS
Specification
6 to 9
NMT 2,100 ppm
Dissolved Oxygen
4.528 ppm
COD
BOD
Arsenic
NMT 200 ppm
NMT 50 ppm
NMT 0.2 ppm
Results found in
October 2020
7.56
680
4.8
158.47
46.02
0.005
Gaseous Emission Control and
Conduction
Our manufacturing operation does not produce or generate
any harmful gases. Generation of gaseous emissions in the
manufacturing process is of insignificant quantity and fully
contained by our HVAC system through HEPA filtration, hence
there is no discharge of gaseous particles in the atmosphere.
The company has phased out the use of CFC as well. The air
quality analysis of our surrounding areas depicted in the below
table certifies our claim.
Ambient Air
Pollutant
Concentration
(micro gram/
cubic meter)
SPM
168
Remarks
• Wind Direction was
from South to North
<=200
• Weather was sunny
and Rainy
Sample
Location
North side and
15 meter from
Production
Air Quality
Standard
Noise, Odor and Vibration Control
and Conduction
Noise and certain vibrations commonly produced by the
electromechanical equipment may affect workers and the
environment at the vicinity. The machineries used in our
production units do not vibrate or create noise and hence
have very insignificant effect. The working personnel inside
the plant are provided with Personal Protective Equipment
(PPE). There is no major odor problem as the factory premises
are regularly disinfected and materials are handled in closed
spaces where the air in the rooms are frequently changed with
the HEPA filter capturing all the particles, hence maintaining a
clean air.
Sound
dBa
2020
75
54
Sound
dBa
2019
75
59
Government Standard
Result in company
surroundings
Health, Safety and Hygiene
It is the policy of our Company to ensure a safe and healthy
workplace for our employees. Beximco Pharma is determined
to protect and promote employee health and safety. We
enacted proper and effective health and safety guidelines
in all our operational and manufacturing sites. Beximco
Pharma identifies 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 (USR)
of all equipment. All machines and moving parts are covered
and interlocked through sensors to protect employees from
physical injury. Proper work uniforms, lab coats, eye and ear
protections are provided where required. We also identify,
assess and control the factors that may lead to musculoskeletal
or other ergonomically related disorders. Automation in most of
the areas reduces work stress. Smoking is prohibited in all our
operational and manufacturing premises. Eating or drinking is
not permitted in the manufacturing areas and analytical labs
where chemical exposures are possible. All employees are
trained on different EHS issues including firefighting, personal
protective equipment, First Aid and Material Safety Data Sheet
(MSDS). All areas in head office and factories are provided
with emergency exits along with proper signage, and where
applicable, flame proof appliances, fire doors etc. are used.
Partitions are made with PU panel capable of retaining fire for
a definitive time period. Each and every employee undergoes
pre-employment and annual health check-ups organized by
the Company. Company has contracted physicians specialized
in Medicine, Gynecology, Child Health etc. Employees can
consult them free of cost. We have a sick bay and employees
can take advice from the qualified physicians engaged by the
Company. There is an arrangement with the nearest clinics for
handling emergencies. We have several ambulances to send
patients to the hospitals and clinics in emergency cases. First
aid boxes are provided to each department of every facility.
Environment, Health and Safety (EHS) | Annual Report 2019-20 | 45
Company conducts mock evacuation drills twice in a year in order to prepare the employees to act properly incase an emergency
arises. Operational and manufacturing sites are fully equipped with fi re hydrants and standalone fi re extinguishers. We have
installed sophisticated Fire Detection and Alarm System in our factory and head offi ce premises to locate the exact place of any
fi re occurrence and employed trained experienced Emergency Core Response Team (ECRT) to respond to any situation.
Child Labor
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.
46 | Annual Report 2019-20 | Environment, Health and Safety (EHS)
Our CSR Initiatives
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 2019-20 were:
Donated PPE Worth Taka 15 Crore to Protect the Healthcare Professionals
COVID-19 Contributions
Beximco Pharma has remained fully committed to fighting the pandemic, in all possible ways. In response to crisis, Beximco was
among the first to source and procure high quality personal protective equipment (PPE), N95 masks, goggles, PCR kits etc. from
abroad, despite very limited availability of those products due to soaring demands worldwide. The company provided different
types of protective equipment worth Taka 15 crore to protect the frontline health workers in Bangladesh. These were distributed
nationwide to more than 150 leading hospitals.
Provided Remdesivir Injection Free of Cost to All Govt. Designated COVID-19 Hospitals
Beximco Pharma donated large quantities of Remdesivir (Bemsivir) injections to the Bangladesh Government for supply to all
government designated COVID-19 hospitals free of cost. Remdesivir is administered intravenously and is authorized for the
treatment of hospitalized patients with severe COVID-19 disease. While handing over this drug to the Health Minister, Beximco
Pharma Managing Director Nazmul Hassan MP said, "We are pleased to be the first generic company in the world to introduce
this very important drug for COVID-19 patients. This reinforces our commitment to ensure access to breakthrough therapies,
despite facing tremendous challenges amid this pandemic."
Our CSR Initiatives | Annual Report 2019-20 | 47
Collaboration for Development of Isolation Canopy for Protecting Frontline Health Workers
Beximco Pharma provided funding and full logistics support for development of negative pressure isolation canopy to protect
the healthcare workers in COVID-19 hospitals. This research was led by Professor Khondkar Siddique-e Rabbani, founding
chairperson and now Honorary Professor of Biomedical Physics and Technology Department in Dhaka University, along with
Professor AKM Akhtaruzzaman, head of Anaesthesia, Analgesia and Intensive Care Medicine Department of BSMMU.
Negative pressure isolation canopy uses an ultraviolet light (UVC) chamber which destroys all micro-organisms and viruses
before the air is further disinfected and cleaned by a HEPA filter. This isolation canopy, developed first time in the country,
has more advanced features than similar devices currently available in many countries. Our researchers could keep the cost
reasonably within reach and significantly less than those available in other countries since the technology is homegrown.
Sweden's Uppsala University is also a partner of this initiative. The first prototype of the isolation canopy was demonstrated at
BSMMU, and several canopies were later donated by Beximco Pharma to the same hospital.
BPL Employees Donated One-day Salary for Victims of COVID-19
Employees of Beximco Pharma and its subsidiary Nuvista Pharma contributed one day’s salary to the fight against COVID-19
pandemic. The lockdowns and restrictions in the country to prevent the spread of COVID-19 harshly impacted those who
depend on daily wages for their livelihood. Beximco Pharma pledged to contribute to alleviate their struggle by working with
other volunteer organizations who work in the frontline to provide emergency food, medicine etc. to the underprivileged people.
48 | Annual Report 2019-20 | Our CSR Initiatives
Regular Supply of Personal Protective Equipment (PPE) to Frontline Healthcare Professionals
Providing PPE to Brig Gen Jamil Ahmed, Director, Kurmitola
General Hospital, Kurmitola, Dhaka Cantonment.
Providing PPE to Dr.Abul Hashem Sheikh, Asst.Director,
Mugda Medical College Hospital, Dhaka.
Providing PPE to the Director of Dhaka Medical College Hospital.
Providing PPE and medicines to icddr,b.
Telemedicine Initiatives for Doctors During the Pandemic
COVID-19 seriously disrupted healthcare services and it has created panic among the doctors, nurses and patients alike.
Hundreds of frontline health-workers including renowned doctors in the country have died from COVID-19. The situation led
doctors reluctant about seeing patients and providing direct consultations to them. Beximco Pharma has taken several initiatives
especially with Bangladesh Society of Medicine to allow leading doctors to render their services to the patients. In addition it
partnered with different telehealth service providers to organize online appointment with doctors.
Our CSR Initiatives | Annual Report 2019-20 | 49
Nationwide Campaign for Mask Awareness
Beximco Pharma sponsored the country’s largest mask awareness campaign in partnership with Jaago Foundation, a leading
volunteer organization in Bangladesh. The initiative called “Apnar Mask Kothay? (Where Is Your Mask?)” – aimed to inspire and
create awareness among people to wear masks amid the COVID-19 pandemic. More than 6,000 volunteers participated from
Dhaka, Chattogram, Khulna, Barisal, Sylhet, Rajshahi, Rangpur, and Mymensingh divisions and set out to raise mass awareness
by taking to the streets. The volunteers discussed the ongoing coronavirus situation and made people aware of the importance
of using masks to reduce the spread of COVID-19. Free masks were distributed among the people during the campaign.
Community Care Program
Promoting Education
Support to Centre for the Rehabilitation of the
Paralyzed (CRP)
long
Beximco Pharma has
been a supporter of CRP,
known
an
internationally
organization which
serves
and rehabilitates people with
different kinds of disabilities.
extended
The
support in the form of funding on the occasion of CRP’s 40th
founding anniversary.
company
Free Medical Camps
Beximco Pharma supports many organizations to conduct
health camps throughout the year. In the year, the Company
provided free medicines to health camps organized by Diabetic
Association of Bangladesh, Agami Education Foundation,
Dhaka City Corporation, Bangladesh Medical Association,
Bangladesh Air Force, Jaago Foundation, and UN Peace
Keeping Missions in Lebanon and Central Africa.
Support to Computer Literacy Centers
Beximco Pharma continued its financial support to three
Computer Literacy Centers (CLCs) in two different districts of
Bangladesh. These CLCs are being run in cooperation with the
Computer Literacy Program (CLP), USA, and its implementation
partner in Bangladesh-Dnet. The main objective of this
initiative is to the promote computer learning and information
technology among the underprivileged students of Bangladesh.
Humanitarian Support to Rohingya Refugees
Beximco Pharma has been providing
healthcare support to the Rohingya refugees
since the beginning of this humanitarian
crisis. Throughout the year, the Company
continued to extend its support in many
ways to Rohingya camps in Coxs Bazar.
50 | Annual Report 2019-20 | Our CSR Initiatives
Supporting Research, Innovation and Development
Beximco Pharma Sponsored icddr,b’s Clinical Trial of Ivermectin for the Treatment of COVID-19
Beximco Pharma sponsored the clinical trial conducted by internationally renowned research organization ICDDR,B to evaluate
the efficacy of Ivermectin in COVID19 patients. The randomised, double-blind, placebo-controlled clinical trial aims at evaluating
the safety and efficacy of anti-parasitic medicine Ivermectin in combination with antibiotic doxycycline or Ivermectin alone. It is
being conducted in hospitalised adults diagnosed with COVID-19.
About the trial, Beximco Pharma managing director Nazmul Hassan MP said, “We are pleased to sponsor the first randomized,
well designed clinical trial of Ivermectin in COVID-19 patients in Bangladesh. Should the outcomes be positive from this trial, as
well as other ongoing trials in different countries, Ivermectin can offer itself as a highly affordable and readily available solution
for the COVID-19 pandemic.”
The manuscript of this therapeutic study is now accepted for publication in a peer-reviewed international Journal
Supporting Other Clinical Trials on COVID-19 treatments
Beximco pharma extended support to several clinical trials initiated by leading institutes or researchers, namely IEDCR, Dr.
Tarek Alam and Combined Military Hospital (CMH), Dhaka. The Company supported them with all trial drugs (Ivera, Megadox,
Azithrocin, Bemsivir) free of cost to facilitate their trials to combat the COVID-19 pandemic.
Our CSR Initiatives | Annual Report 2019-20 | 51
Corporate Events
Beximco Pharma Signed MoU with Serum Institute for COVID-19 Vaccine
Beximco Pharma entered into a Memorandum of Understanding with Serum Institute of India and Govt of Bangladesh
for the supply and distribution of 30 million doses of the Oxford/AstraZeneca vaccine, AZD1222, in Bangladesh. Serum
Institute of India (SII) is the world’s largest producer of vaccines which will manufacture the Oxford vaccine under a
license agreement with AstraZeneca. Beximco Pharma also has an arrangement with SII to import the same vaccine for
sale and distribution to the private pay market in Bangladesh.
Beximco Pharma Introduces World's First Generic
Remdesivir for COVID-19 Treatment
Beximco Pharma Announces a Commercial
Agreement with Mylan (Viatris)
On February 24, 2020, Beximco Pharma signed an
agreement for distribution of biosimilar products of Mylan
in Bangladesh.
Under the terms of the agreement, Beximco Pharma has
the exclusive rights to launch Mylan’s portfolio of key
monoclonal antibodies to treat different types of cancers,
rheumatoid arthritis, Crohn’s disease, ulcerative colitis and
other medical conditions.
The first product under this deal, OgivriTM (Trastuzumab), a
breast cancer drug which is biosimilar to blockbuster drug
Herceptin from Roche, has already been launched in the
market.
On May 21, 2020 Beximco Pharma launched world’s first
generic remdesivir (under the brand name Bemsivir), an
antiviral drug for the treatment of COVID-19. Originally
developed by US based Gilead Sciences, Remdesivir is a
direct acting antiviral drug that inhibits viral RNA synthesis,
which received emergency use authorization from US FDA
on May 1, 2020 for the treatment of hospitalized COVID19
patients. Bemsivir was launched in presence of Health and
Family Welfare Minister Mr Zahid Maleque MP, Beximco
Pharma managing director Nazmul Hassan MP and other
high officials from the government and the company.
52 | Annual Report 2019-20 | Corporate Events
International Conference on Lung Health,
6th
Pulmocon- 2019
GERD Awareness Week 2019
international conference on
The 6th
lung health,
Pulmocon-2019 was held in BICC during November 05-
08, 2019. Beximco pharma was one of the major scientific
partners of that conference.
Launching of Bexitrol F Maxhaler
Beximco Pharma celebrated GERD awareness week 2019
during November 17-23, 2019. This year Beximco arranged
an interactive live session with Prof. Dr. Mahmud Hasan,
President, Bangladesh gastroenterology society to raise
public awareness.
Annual Sales and Marketing Conference, Kenya
Beximco Pharmaceuticals Limited achieved another
launching Bexitrol F Maxhaler, generic
milestone by
equivalent of GSK’s Seretide Accuhaler, on September 5,
2019. Beximco Pharma introduced this sophisticated mDPI
device for the first time in Bangladesh.
Annual Sales and Marketing Conference 2018-19 of the
field force of BPL – Kenya was held on October 18, 2019,
in Nairobi. The field force also received an extensive 6-day
training before the Conference.
CPhI Worldwide 2019, Germany
Beximco Pharma showcased its products to potential clients from around the world in CPhI Worldwide 2019 held in
Frankfurt, Germany in November 2019.
Corporate Events | Annual Report 2019-20 | 53
Visitors from Drug Administration
Plant Visit
A group of high offi cials from Drugs Administration, Bangladesh headed by Major General Md. Mahbubur Rahman, Director
General visited the factory on October 07, 2019.
Delegates from Maldives
Visitors from China
A group of delegates from State Trading Organization, Maldives headed by
Mr. Mohammed Nizam visited the Tongi Plant of BPL on July 07, 2019.
A group of visitors from China visited the
factory on October 09, 2019.
54 | Annual Report 2019-20 | Corporate Events
Media Spotlight
This year, the Company received tremendous media coverage in global media especially for its outstanding initiatives in fi ghting
COVID-19 pandemic. The top executives were interviewed on multiple platforms both nationally and internationally during the
year 2019-20.
1. On May 5, 2020 Reuters featured Beximco Pharma exclusively for launching world’s fi rst generic Remdesivir.
2. Mr. Rabbur Reza, COO of the Company was interviewed on digital platform of British Broadcaster, Sky TV on 21 May, 2020 on
the occasion of introducing Remdesivir generic (Bemsivir) in Bangladesh.
3. An international news agency Bloomberg News, headquartered in New York, featured Beximco Pharma for pioneering role in
producing Remdesivir to treat COVID-19 on 21 May, 2020.
4. Mr. Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals Ltd. was interviewed by Manufacturing Chemist,
leading global magazine for the pharmaceuticals industry, on 26 May, 2020 regarding donation of Remdesivir (Bemsivir) to
the Bangladesh Government for treating critical COVID-19 patients.
5. Bemsivir Launch was also covered by various other digital platforms around the globe such as The New York Times, The
Business Standard, S & P Global, and Mint.
Corporate Events | Annual Report 2019-20 | 55
Chairman’s Statement
A S F Rahman
Chairman
Dear Shareholders,
We are now passing through a hard time. The COVID-19
pandemic has shattered the economy and life of the people
across the world. Amidst this economic onslaught and social
disruptions, we completed perhaps one of the most challenging
years in our history.
Despite hurdles and challenges, our performance during the
year was truly remarkable. We achieved double digit growth
in domestic and international sales, attained excellent profi t
growth, enriched our product portfolio, expanded our market
reach and delivered results for our shareholders. Such an
impressive performance in an entirely volatile situation is
a manifestation of our strength to withstand and ability to
drive business in any diffi cult and uncertain condition. Our
experienced, matured and expert management team took
appropriate decisions and realigned their strategies to achieve
targets defying the pandemic.
drug Virafl u. During the extreme crisis, we came forward to
supplement governmental efforts to save lives. We are the fi rst
to donate high quality personal protective equipment (PPEs)
and other logistics to our doctors and frontline workers.
Our proactive response to public health issues has earned
us the most prestigious CPhI Award 2020 in the category
of “Innovation in Response to COVID-19.” This award is a
clear testimony of our technical capability and foresighted
leadership.
Dr. Abdur Rahman Khan, Independent Director and Chairman of
the Audit Committee, has retired from the Board on completion
of his tenure of offi ce for two consecutive terms of three years
each. On behalf of the Board, I thank Dr. khan for his guidance
and valuable contribution as a Director of the Company.
Dr. Khan has been replaced by Mr. Mamtaz Uddin Ahmed,
Professor, Department of Accounting and Information System,
University of Dhaka. Professor Ahmed is also the Treasurer of
the University of Dhaka. I welcome Professor Mamtaz Uddin
Ahmed in the Beximco Pharma family and like to ensure him all
necessary co-operation from the Board in discharging his duty
as an Independent Director and Chairman, Audit Committee.
The Audit Committee and the Nomination and Remuneration
Committee have carried out their respective responsibilities
with utmost sincerity and diligence. On behalf of the Board,
I like to thank the Chairman and members of both the
committees for their sincere efforts and valued contribution.
During this pandemic we lost two of our employees Mr.
Mohd. Haydarul Islam and Mr. Amjad Hussain. I am extremely
saddened on their premature departure and respectfully
recognize their contribution to the Company.
I want to thank the employees of the company for their
dedication and hard work amid the devastation of COVID-19
pandemic. It is their passionate and committed effort that
drives the business forward delivering excellent results and
strong growth. The success we have achieved was only
possible due to their collective efforts.
Finally, I express my gratitude to you, dear shareholders, for
extending invaluable support at all times. I wish you all good
health and safe life.
We played a pioneering and laudable role to address the
public health crisis caused by the pandemic. Beximco Pharma
became the fi rst Company in the world to launch a generic
version of remdesivir which has earned global respect for
us. Besides this, we launched another repurposed COVID-19
Thanking you
A S F Rahman
Chairman
56 | Annual Report 2019-20 | Chairman’s Statement
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Chairman’s Statement | Annual Report 2019-20 | 57
Management Discussion and Analysis
The sector was particularly affected in the last quarter (April–
June 2020) when its growth sharply fell below 1%. Many of
the leading companies slipped into negative territory. Beximco
Pharma, however, still managed to grow by 8% in the last
quarter owing to its proactive planning and timely execution of
strategies. This growth was largely driven by our performance
in key therapeutic areas namely cardiovascular, analgesics,
anti-diabetic and respiratory.
Bangladesh reported its fi rst confi rmed case of COVID-19
on 8 March 2020 and since then the number of cases has
risen steadily to cross 400,000 in November with more than
6,000 deaths which include hundreds of frontline healthcare
workers. Bangladesh imposed a nationwide lockdown on 26
March 2020 that was extended up to end of May 2020. Subject
to a few exceptions, manufacturing units across all industries,
business and offi ces remained shut and all kinds of public
transport were suspended. Pharma companies were however
exempted from the lockdown and allowed to continue their
operations ensuring social distancing and strict health safety
measures at the factories.
The lockdown in China and many other countries throughout
the fi rst quarter of 2020 had a signifi cant impact on price and
availability of APIs and packaging materials. Price of large
number of APIs suddenly shot up causing a shortage of many
drugs. Serious disruptions in supply chain posed tremendous
challenge to the industry to continue production and delivery
of medicines across the country maintaining adequate safety
of our people. We had to take several mitigating measures
to confront the unforeseen situation in order to continue our
operations.
Review of Operations
Sales, Profi ts and Products
Despite
facing unprecedented challenges of COVID-19
pandemic, we achieved a growth of 12.5% in consolidated
revenue in the domestic market over the last year. Our export
business posted 10% growth amid serious supply chain and
logistics challenges, especially in the last quarter. Many of our
export markets were hit hard due to extended lock down in
those countries; shipping and cargo operations collapsed and
freight cost increased manifold.
We launched 26 new products in the local market to expand
Nazmul Hassan MP
Managing Director
Economic and Industry Overview
COVID-19 pandemic has confronted the world with an
unprecedented situation and has profoundly impacted human
lives and well-being. The massive shock of the pandemic
and lockdown measures around the world to contain it have
plunged the global economy into a severe contraction.
According to IMF projections, the global economy would
contract by 3% in 2020, while the World Bank predicts that to
decline by 2.1-3.9%. GDP growth of Bangladesh fell to 5.24%
in FY2019-20, lowest in 12 years, as the pandemic ravaged
the economy for at least a third of the fi nancial year. Country’s
export earnings registered a sharp decline of 16.9% at
US $33.67 billion.
As the pandemic continues to impact global economy taking
toll on every industry, pharma sector is no exception to this
economic downturn. According to IQVIA 2020 audited report
(MAT June 2020), Bangladesh pharma market managed to
grow by just 4.34% in 2019-20, the lowest in recent times.
58 | Annual Report 2019-20 | Management Discussion and Analysis
and strengthen our existing product portfolio which includes 4
products introduced for the first time in Bangladesh. We also
launched 5 new products from our subsidiary, Nuvista Pharma
Limited.
The COVID-19 pandemic has been considered as a
humanitarian crisis with a public health dimension that has
put tremendous pressure on pharma industry to act swiftly to
make treatments available to the patients. On 21 May 2020
Beximco Pharma launched generic version of Remdesivir
(under the brand name Bemsivir) in Bangladesh, which
received emergency use authorization from US FDA. Beximco
Pharma became the first pharma company in the world to
launch this generic version for the treatment of COVID-19
patients which drew worldwide attention. We also launched
Favipiravir tablets, another repurposed drugs for the treatment
of COVID-19 patients under the brand name Viraflu.
We introduced multidose Dry Powder Inhaler (mDPI) device for
the first time in Bangladesh under the name Maxhaler mDPI
and our first product in this delivery system was Bexitrol-F
mDPI which is equivalent to GSK’s Seretide Accuhaler. Globally
there are only a few manufacturers using this delivery system
for this product.
Our newly launched products cover 12 therapeutic segments,
which
includes analgesic, anti-diabetic, anti-infective
cardiovascular, hormones, gastrointestinal and respiratory to
name a few.
Our leading brands across key therapeutic areas performed
strongly with cardiovascular, analgesic, respiratory and anti-
diabetic posting impressive double-digit growth.
All the key financial indexes of the Company have moved
upward in the financial year concluded. The pre and post-tax
profit increased in consistent with growth in sales revenue.
Profit before tax rose by 17.9% over last year to reach at Taka
4,653 million; profit after tax also grew by 16.6% to Taka
3,544 million. Earnings per Share has increased by 15.9% to
Taka 8.67. Directors have proposed 15% cash and 10% stock
dividend.
Report of the Directors presents further details on financial
performance.
International Market
We completed 63 registrations of 50 Products in 20 countries
to further broaden and consolidate our export markets. In the
US, currently our largest export market, we launched two new
products, Nadolol and Sotalol AF, both are cardiovascular drugs.
We received regulatory approval from German Regulatory
Authority and Malta Medicines Authority (European Union).
During the year we began exporting to 4 new markets namely,
Maldives, Pakistan, Nicaragua and Dominican Republic.
We also received US Food and Drug Administration (FDA)
approval for Flecainide Acetate (50, 100 and 150 mg tablets),
an antiarrhythmic drug used for treating irregular heartbeats
in conditions such as tachycardia and atrial fibrillation.
COVID-19 Responses
As a socially responsible organization, Beximco Pharma has
always responded to national and international emergency
and this remains an integral part of its strategic commitment.
During the critical and uncertain times, amid serious supply
chain disruptions and prolonged lockdowns, we responded
effectively to ensure uninterrupted supply of medicines
throughout the country. Besides taking a series of measures to
protect health and safety at work places, we ensured that our
employees and their families get every possible support in any
health crises. We implemented new work practices, introduced
social distancing and encouraged employees to work remotely
where possible. The Company among host of other initiatives
has also set up an emergency response team, available 24
hours a day, to respond to employee concerns and provide
medical support in the event they may be exhibiting COVID-19
symptoms.
During the initial outbreak of COVID-19 in Bangladesh, health
services across the country went through a tremendous crisis.
Visits to hospitals and clinics sharply declined, Doctors and
other healthcare workers, as well as patients were fearful
of the infection. This caused healthcare delivery system to
nearly collapse resulting in significant increase in other non-
communicable, life threatening diseases. Beximco Pharma
was among the first to extend support in this critical time to the
frontline health workers. We provided much needed personal
protective equipment (PPE), N95 masks, goggles, and PCR kits
worth US $2 million.
Management Discussion and Analysis | Annual Report 2019-20 | 59
The Company supported various telemedicine initiatives for
doctors to continue providing treatment to their patients.
indicates strong internal fund generation and outstanding
alternative source of fund) rating in the short term to Beximco
Pharmaceuticals Limited.
As noted earlier, we launched a number of repurposed drugs
including the world’s first generic Remdesivir that earned us
the prestigious CPhI Awards 2020 for “Innovation in Response
to COVID-19.” The Company has been providing Bemsivir to
the government designated COVID-19 hospitals free of cost
from the very first day of its official launch. It has also sent free
medicines abroad on humanitarian grounds. This has drawn
positive attention and notes of praise from around the world.
We collaborated and sponsored the research done by University
of Dhaka and Bangabandhu Sheikh Mujib Medical University
(BSMMU) to develop country’s first Negative Pressure Isolation
Canopy to prevent patients from spreading COVID-19 in
hospitals.
We have sponsored a clinical trial to evaluate the efficacy of
two potential treatments, Ivermectin alone and Ivermectin
with Doxycycline, in COVID-19 patients of Bangladesh in
collaboration with globally reputed research organization,
icddr,b. The manuscript of this therapeutic study is now
accepted for publication in a peer reviewed international
journal.
We have also signed the Open pledge from global manufacturers
of generic medicines against COVID-19. Through this pledge,
we commit to work with the UN-backed Medicines Patent Pool
(MPP) in making COVID-19 treatments available especially
in low- and middle-income countries. And by doing so, we
support SUCCESS (Sustainable Universal access through
Collaboration, Coordination, Emergency measures, Scale and
Speed).
Our positive branding and overall performance earned us
the prestigious “Global Generics & Biosimilars Awards 2019”
in the category of Company of the Year, Asia Pacific, which
recognizes the efforts made by global generics and biosimilars
sectors, to make affordable medicines available to more
patients across the globe.
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
policies within
framework and
the financial reporting
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.
A new IFRS 16: Leases has introduced a single on-balance
sheet lease accounting model for leases and replaces the
previously adopted IAS 17: Leases. The standard requires
that an asset acquired under a lease be recognized as Right-
of-use Asset and the corresponding liability as lease liability.
The company has reclassified the assets acquired under the
lease into ‘Right-of-use Assets’ and presented them in the
Statement of Financial Position following IFRS 16.
Risks related to the Financial Statements
The Company has a robust system of internal control and
well-designed accounting reporting process. The Company’s
accounting and finance
functions are manned with
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 misstatements 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.
Credit Rating
Credit Rating Information and Services Limited (CRISL),
the country’s leading credit rating company, has assigned
AAA (Highest safety for timely repayment) rating in the long
term and ST-1 (Highest certainty of timely repayment which
Looking Forward
With the pandemic trajectory still remains unpredictable, we
are trying our best to respond to the challenges arising from
the economic and social disruptions while adjusting our short
and long-term operating strategies in light of the experience
60 | Annual Report 2019-20 | Management Discussion and Analysis
gathered from the crisis.
As vaccines remain the mainstay in combating the pandemic,
we have been closely watching the developments in this space
from the very beginning. Recently we have signed Distribution
Agreement with the Serum Institute of India Pvt. Ltd. (Serum),
the world’s largest vaccine producer to become its exclusive
distributor for supplying Oxford/AstraZeneca vaccine AZD1222
and Novavax vaccine NVXCoV2373 in Bangladesh. Subsequent
to this agreement, a tripartite Memorandum of Understanding
(MoU) has been signed among Serum, Government of
Bangladesh (GoB) and Beximco Pharma for procurement of 30
(thirty) million doses of Oxford/AstraZeneca vaccine AZD1222
by GoB for the people of Bangladesh. Beximco Pharma has
further booked 1 (one) million doses of this vaccine for the
private pay market.
We also signed a distribution agreement with Mylan (Viatris) for
certain biosimilar products in Bangladesh. Our key focus would
remain on launching a range of biosimilar products which have
good potential in the market. Under the Mylan deal, Beximco
Pharma has the exclusive rights to launch Mylan’s portfolio of
key monoclonal antibodies to treat different types of cancers,
rheumatoid arthritis, Chron’s disease, ulcerative colitis and
other medical conditions. We have already launched Ogivri
(Trastuzumab), a breast cancer drug which is biosimilar to
blockbuster drug Herceptin from Roche. Cancer is now one of
the leading causes of death in Bangladesh and currently there
are more than 50,000 HER2-positive breast cancer patients in
the country. We expect to launch additional biosimilar products
progressively.
Implementation of our new Oral Solid Dosage (OSD) expansion
project- Unit-III was affected during the lockdown imposed by
the government. As the situation is slowly improving, we have
resumed some of our project activities. We hope if situation
does not get any worse to enforce further lockdown, our new
facility will be operational by the middle of 2021.
At Beximco Pharma, as we face the COVID-19 challenges,
we take this as an opportunity to become more resilient and
effi cient, and make ourselves prepared for any future crisis.
We are doing our best to respond to the disruption caused by
COVID-19 and taking all measures to ensure continuity of our
business.
Nazmul Hassan MP
Managing Director
Management Discussion and Analysis | Annual Report 2019-20 | 61
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
2020 along with the report of the auditors thereon.
General Economic Overview
Performance of the Economy
Bangladesh economy despite the hit of the pandemic
performed relatively well and attained a remarkable 5.2%
GDP growth against its targeted 8.2% growth set for the fiscal
year. Following the spread of pandemic in early March, the
government announced countrywide lockdown, imposing
restrictions on business and social activities at varying levels
with exceptions for certain essential sectors. The lockdown
continued till May which was gradually relaxed to bring
back normalcy in economic and business life of people. This
adversely impacted the entire fourth quarter of the 2019-
20 fiscal period pulling back the robust economic growth
achieved in the previous three quarters.
Country’s industrial sector which contributes around 35% of
the GDP grew by 6.48% while the agriculture sector increased
by 3.11% even with the asymmetric shock and downswing
due to the pandemic. The per capita income though improved
by 8.15% to US $2,064, the economists fear that the number
of people living below the poverty line may go up for loss of
their earnings consequent to the pandemic. Domestic inflation
remained under control at a moderate 5.6% level. Although
earnings from export, which is predominantly from the
readymade garments, declined by almost 17%, remittance
inflow from the wage earners reached a record high. The
downturn in import and strong inflow of remittance resulted
in a record foreign exchange reserve of US $35.8 billion and
helped the exchange rate of domestic currency against US
dollar remain stable.
The economic outlook of Bangladesh in the prevailing global
context appears encouraging. While the economists predict a
3% contraction of the global economy, Bangladesh is projected
to grow by 6.8% in the fiscal year 2020-21.
COVID-19 Support to Business
and industries to combat the COVID-19 crisis and keep the
economy afloat. These includes cash credit at a subsidised
interest rates for payments of wages and salaries; extension of
time for loan repayment; reduced 4% interest for agricultural
credit; allowing foreign-owned companies to obtain loan from
abroad; relaxing letter of credit usance period for certain
imports. The Central Bank also announced certain monetary
measures
interest rates,
purchase of securities from the secondary markets, various
refinancing schemes to help ease the liquidity.
importantly reduction of repo
Duty and tax waivers were granted for import and sale of all
COVID-19 related life saving medicines, Personal Protective
Equipment (PPEs), testing Kits, medical equipment and other
essential medical items. Banks relaxed the payment criteria
for import and allowed advance payment up to US $500k
without repayment guarantee for import of COVID-19 related
items. Further measures include putting restrictions on laying
off workers, mandated payment of full salary in garments
and disbursement of Taka 12.5 billion cash aid for the poor
families.
This year banks have reduced their interest rate following a
Central Bank’s directive that puts a maximum 9% interest rate
cap on lending. This is going to benefit industries across all
sectors.
Review of Financial Performance
Impressive sales and Profit Growth Despite COVID-19-hit
fourth quarter
The Company continued its historic growth momentum with
notable increase in sales, operating and net profit defying
a difficult market condition prevailing throughout the fourth
quarter of the fiscal period. Our consolidated sales registered
a 12.3% increase to reach at Taka 25,612 million from Taka
22,816 million of previous year. Sales in the domestic market
increased by 12.5% while our export rose by 10% to Taka
2,751.8 million. The growth in export though falls short of our
expectation, given the context of disruptive supply chain and
global lockdown, it deserves appreciation.
Alongside with taking up measures prioritizing the healthcare
and earnings of the disadvantaged people, the government
offered several fiscal and non-fiscal schemes for the business
Our profit from operation, pre-tax and post-tax profit all posted
a double digit growth. The operating profit rose by 10.7%
to Taka 5,609 million, while the pre -tax profit increased by
62 | Annual Report 2019-20 | Report of the Directors to the Shareholders
17.9% to Taka 4,653 million. The net profit after tax reached
to Taka 3,544 million with 16.6% YoY growth.
Sales Revenue
Gross Profit
Operating Profit
Pre-Tax Profit
Net Profit after Tax
Earnings Per Share (Taka)
Million Taka
2019-2020
2018-2019
Growth
25,612
11,899
5,609
4,653
3,544
8.67
22,816
10,620
5,066
3,946
3,040
7.48
12.3%
12.0%
10.7%
17.9%
16.6%
15.9%
Improved sales mix and relatively stable exchange rate
coupled with leverage effect of higher sales volume has helped
maintain the gross margin at 46.5% neutralizing the effect of
an increase in cost of materials in international and domestic
markets. Country wide lockdown throughout the fourth quarter
compelled us to cancel or defer certain programs, events and
market promotion activities which have caused a decrease
or relatively lower increase of some operating expenses.
Additionally, the distribution commission expenses have
increased partly because of the higher sales volume and partly
for the use of BPL’s distribution network by the subsidiary
company Nuvista Pharma for greater cost synergy. Overall, the
operating expenses remained contained at 24.6% of sales as
against 24.3% of the previous year. Earnings per Share also
went up to Taka 8.67 from Taka 7.48 of last year.
Improved Operating Cash Flow
Strong sales and profit growth coupled with insignificant
changes in the working capital resulted in a considerable
increase in operating cash flow. Our NOCFPS increased to Taka
13.67 as compared to Taka 7.30 of the previous year. This also
contributed to the decline in Bank borrowings by Taka 2,981
million during the year, bringing the total bank borrowing to
Taka 10,504 million in 2019-20 as against Taka 13,485 million
of last year. The Net Asset Value (NAV) per share increased to
Taka 80.12 from Taka 72.96 of the prior year.
Continuity of Other Income
Cash incentives on export and Royalty are two significant
sources of other income reported during the period under
review. The government declared 10% cash incentive on
export of finished pharmaceutical products, which came into
effect from the fourth quarter of 2018-19. The companies
receive this incentive on the FOB value of their export subject
to fulfilment of certain conditions. Cash incentives on export
as reported in the financial statement represent the amount
claimed and accrued for the year fulfilling the eligibility criteria.
We have royalty income from the sale of few selected
products in the overseas markets. The amount reported in the
consolidated financial statements does not include the royalty
earned from the subsidiary company Nuvista Pharma, which
are eliminated as inter-company transactions. Both the cash
incentives and royalty are linked to export and accounted for
on accrual basis.
An amount of Taka 18.25 million included in the interest
income reported for the period relates to the interest earned
on Company’s short term investment with Bangladesh Export
Import Company Limited. The Company has fully recalled the
investment and as such this income will not continue in future
periods.
The other items of income are either insignificant or inherent
to normal business operations.
Profit and its Appropriation
Directors propose the appropriation of profit as follows:
Particulars
Amount in Taka’000
BPL (Stand-alone)
2019-20
2018-19
Net Profit After Tax
3,363,400
3,023,500
Adjustment for depreciation
of Revalued Assets
8,114 9,175
Profit Brought Forward
16,548,524
14,124,183
Profit Available for
Appropriation
Proposed Dividend:
Cash Dividend
Stock Dividend
19,920,038
17,156,858
(608,334)
(608,334)
(405,556)
-
Profit Carried Forward
18,906,148
16,548,524
Dividend
The Board of Directors recommends 15% Cash Dividend i.e.
Taka 1.50 per share and 10% Stock Dividend i.e. 10 shares
for every 100 shares held for the year ended 30 June 2020 for
onward approval at the Annual General Meeting. The Company
has declared no interim dividend during the year.
The Board of Directors found it prudent to propose stock
dividend along with cash dividend considering the Company’s
Report of the Directors to the Shareholders | Annual Report 2019-20 | 63
requirement of cash to invest in growth opportunities, support
its ongoing capital expenditure projects and to fund the import
of vaccines for COVID-19.
Risks and Concerns
Risks have always been an important and inherent part of
doing business and pharmaceutical industry is no exception
to it. Beximco Pharma like any other company, is exposed to
different risks-systematic and unsystematic, that might affect
its operating and economic performance. Managing risk thus
remains key to a sustainable advancement and expansion
of our business. Beximco Pharma’s strong and experienced
executive team has over the years established robust policies
and controls to identify, assess and address diverse risks
that might affect the accomplishment of its operational or
financial targets. Under the broad direction of the Board, the
management of the Company monitors and reviews risks on a
continual basis. Based on the variety and intensity of the risk,
the business takes appropriate mitigating measures to avoid,
eliminate or reduce risks.
While the Company has an appropriate system of vigilance
and established procedures to address the risks arising from
internal or external sources, there are uncertainties beyond
control of the Company which might affect achievement of its
goals. Demand for pharmaceutical products is largely driven
by the economic advancement and consequent increase in
the purchasing power of the people. Any decline in economic
growth could affect the future demand for pharmaceutical
products. Bangladesh maintained steady economic progress
over the years with substantial uplift in all socio-economic
indexes. However, the country’s economy along with the
world is now passing through a difficult time and there are
uncertainties about how the COVID-19 situations evolve
and affect the socio-economic indexes in the days ahead.
The growth of Pharmaceutical market in Bangladesh being
primarily driven by individual private spending for healthcare,
the current pandemic if prolonged, might impact individual’s
earnings and hinder the future economic progress, thus
affecting the Company’s growth target. However, after an
initial shock of the pandemic, the economy of Bangladesh has
started to revert and there are signs of recovery. Economists
project a positive outlook for Bangladesh with economy
growing at 6.8% for the fiscal year 2020-21 while the global
economy is expected to shrink.
Because of regulatory control and sensitivity to public health,
prices of pharmaceutical products can’t be promptly adjusted
responding to the rise in cost. This poses additional threat to
attaining Company’s profit target. The management is quite
aware of the risk and the Company’s sourcing, procurement
and pricing strategies properly accommodates the issues to
minimise any adverse impact. Beximco Pharma buys its 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 thus, reduces the individual
supplier’s influence on procurement prices. BPL manufactures
few of the APIs and steadily building up its API manufacturing
capabilities to lessen dependency on import. The regulatory
authority in the past has always responded positively to any
upward adjustment of price for increase of costs.
Government policy for the Pharmaceutical sector continues to
remain supportive to its growth. Existing fiscal and non-fiscal
incentives enjoyed by the industry is expected to continue in
future. No significant changes in policy, regulation or tax regime
that can have any adverse effect on the growth potential of the
business are foreseen in the days ahead.
Retirement and Re-election of Directors
Mr. A S F Rahman and Mr. Salman F 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. A S F Rahman and
Mr. Salman F Rahman are long term directors in the Board.
Detailed bio-data of the Directors are available 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 43rd Annual General Meeting of the Company has carried
out the audit for the year ended 30 June 2020. 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 2020-21. 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 2020-21.
The global pandemic is creating disruptions in the supply chain,
which if persists for long might adversely affect the cost of
materials, shipment and logistics. We have encountered such
an increase in cost at the initial stage of the COVID-19 outbreak.
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
64 | Annual Report 2019-20 | Report of the Directors to the Shareholders
periodically reviews these transactions. The full disclosure of
all related party transactions are provided in the notes to the
accounts.
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.
Compensation Policy for Top Executives
The Company offers industry competitive compensation
packages to the employees. Managing Director and all other
senior management team members are full time employees
of the Company and receive fixed monthly salary. They are
also entitled to certain perquisites as per the terms of their
employment contract. Additionally, Beximco Pharma has
defined contribution plan (Provident Fund) and defined benefit
plan (Gratuity) for employees irrespective of their positions. The
Company has a rigorous performance evaluation and appraisal
system linked to KPIs. Employee salary and allowances are
reviewed once in every year and revised based on individual
performance. The Nomination and Remuneration Committee is
entrusted with the responsibility of reviewing and appraising
the salary of the senior executives and making appropriate
recommendation to the board. Senior management is not
entitled to any performance linked variable incentive scheme
other than the benefits of statutory workers’ profit participation
fund.
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.
•
effectively implemented and monitored.
•
protected.
Internal Control System is sound in design and has been
Interests of the minority shareholders have been duly
• 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.
Key Operating and Financial Data
The summarized key operating and financial data for 2019-20
and immediately preceding five years is provided in Annexure- 2.
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.
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
Meeting
A S F Rahman
Chairman
Salman F Rahman MP
Vice Chairman
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury Director
Iqbal Ahmed
A B Siddiqur Rahman
Director
Director
Dr. Abdur Rahman Khan
Independent Director
Shah Monjurul Hoque
Independent Director
9
12
12
12
12
12
8
12
The Pattern of Shareholding
The Shareholding of Directors, CEO, CFO, Company Secretary,
Key Executives and their spouses and children are provided in
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 in
Annexure- 4.
On behalf of the Board,
A S F Rahman
Chairman
Report of the Directors to the Shareholders | Annual Report 2019-20 | 65
Annexure- 1
The Board of Directors
Beximco Pharmaceuticals Limited
Subject: Declaration on Financial Statements for the year ended on 30 June 2020
Dear Sirs,
Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notifi cation 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 2020 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 fi nancial statements were made on a prudent and reasonable basis, in order for
the fi nancial 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
fi nancial 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 fi nancial statements is appropriate and
there exists no material uncertainty related to events or conditions that may cast signifi cant doubt on the Company’s ability
to continue as a going concern.
In this regard, we also certify that:
i. We have reviewed the fi nancial statements for the year ended on 30 June 2020 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 Offi cer
66 | Annual Report 2019-20 | Report of the Directors to the Shareholders
Annexure- 2
Key Operating and Financial Data
30 June 2020 30 June 2019 30 June 2018
30 June 2017
Authorized Capital
Paid up Capital
Shareholders’ Equity
Fixed Assets (Gross)
15,000,000
4,055,564
32,797,450
45,615,625
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
30 June 2016
31 Dec 2014
Taka in Thousand
9,100,000
3,678,516
20,920,185
25,818,728
9,100,000
3,862,442
23,059,412
28,756,326
Net Asset Value (NAV) Per Share -Taka
Market Price Per Share
Price Earning Ratio (Time)
80.12
69.20
7.98
72.96
83.50
11.16
Number of Shareholders
Foreign Investors
ICB including ICB Investors Account
Sponsors, General Public & Other
Institutions
56,101
71
882
55,148
56,177
77
881
55,219
66.78
93.90
15.02
57,982
90
879
57,013
61.82
113.00
20.58
62,741
92
874
61,775
59.70
83.50
17.47
56.87
58.70
14.82
67,679
83
878
66,718
89,913
68
882
88,963
Number of employees
4,737
4,523
4,256
3,833
3,515
3,063
Total Sales
Export Sales
Gross Profit
Profit Before Tax
Net Profit
EPS/Restated EPS- Taka
Net Operating Cash Flow Per Share
New Product Launched-numbers
Cash Dividend
Stock Dividend
*18 months period.
2019-20
2018-19
2017-18
2016-17
25,611,947
2,751,790
11,899,100
4,653,440
3,544,483
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
2015-16
Jan-Dec14
Taka in Thousand
11,206,886
500,469
5,104,191
2,109,556
1,528,298
13,785,325
861,653
6,408,857
2,564,267
1,938,894
8.67
13.67
26
15%
10%
7.48
7.30
20
15%
-
6.25
4.49
16
5.49
6.49
15
12.50%
-
12.50%
-
4.78
8.21
21
15%*
5%*
3.96
6.02
28
10%
5%
Report of the Directors to the Shareholders | Annual Report 2019-20 | 67
Graphical View of Selected Growth Indicators
Taka in million
68 | Annual Report 2019-20 | Report of the Directors to the Shareholders
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
-
-
-
-
-
Report of the Directors to the Shareholders | Annual Report 2019-20 | 69
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 nominated
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
70 | Annual Report 2019-20 | Report of the Directors to the Shareholders
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
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 Taka 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 Taka 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 listed 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
Company operates in a
single product segment.
√
√
√
√
√
√
√
√
√
√
√
N/A
N/A
N/A
√
√
√
√
Report of the Directors to the Shareholders | Annual Report 2019-20 | 71
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
Condition
No.
1(5)(xiv)
1(5)(xv)
1(5)(xvi)
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
72 | Annual Report 2019-20 | Report of the Directors to the Shareholders
Disclosed in Annexure- 2
Annexure-3
Disclosed in Annexure-2
Disclosed in Annexure- 1
√
√
√
√
√
√
N/A
N/A
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Annexure-1
Report of the Directors to the Shareholders | Annual Report 2019-20 | 73
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
74 | Annual Report 2019-20 | Report of the Directors to the Shareholders
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
-
√
-
-
-
-
-
√
√
√
√
Total 4 meetings held in the
FY 2019-20.
Referred to Report of the
Audit Committee.
No such IPO/RPO/Right
Issue occurred during FY
2019-20.
Audit Committee found no
such issue or activity.
-
-
-
-
-
-
Condition
No.
Title
Compliance Status
(“√” in appropriate
Column)
Complied
Not
Complied
Remarks
(if any)
-
No such instance occurred
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
√
√
√
√
-
√
√
√
√
√
√
√
√
-
√
√
√
√
√
√
√
√
√
√
√
Report of the Directors to the Shareholders | Annual Report 2019-20 | 75
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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
76 | Annual Report 2019-20 | Report of the Directors to the Shareholders
Annexure-5
Report of the Directors to the Shareholders | Annual Report 2019-20 | 77
Report of the Audit Committee
This report of the Audit Committee of Beximco Pharmaceuticals Limited is being presented 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, reviewing the
management discussion and analysis, overseeing selection and performance of external auditors and reviewing the financial
statements of subsidiary companies. 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 25 October 2020 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, 2020. 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.
Changes in the Composition of the Committee
Dr. Abdur Rahman Khan an Independent Director of the Board and the Chairman of the Audit Committee retired from the Board
on completion of his tenure of office for two consecutive terms of three year each. He has been replaced by Mr. Mamatz
Uddin Ahmed, Professor, Department of Accounting and Information system and Treasurer, University of Dhaka. The Board has
appointed Mr. Ahmed as Chairman of the Audit Committee. The Committee has been reconstituted as follows:
78 | Annual Report 2019-20 | Report of the Audit Committee
Membership
Representation in the Board
Position in the Committee
Prof. Mamtaz Uddin Ahmed
Independent Director
Mr. Shah Monjurul Hoque
Independent Director
Mr. Osman Kaiser Chowdhury, FCA
Director
Mr. Mohammad Asad Ullah, FCS
Company Secretary
Chairman
Member
Member
Secretary
Meetings and Attendance
The Committee held four meetings to carry out its business under the ToR during the year. Record of attendance of the members
in the meetings are as below:
Membership
Representation in the Board
Position in the Committee
Attendance in Meeting
Dr. Abdur Rahman Khan*
Independent Director
Chairman (outgoing)
Prof. Mamtaz Uddin Ahmed*
Independent Director
Mr. Shah Monjurul Hoque
Independent Director
Mr. Osman Kaiser Chowdhury, FCA Director
Mr. Mohammad Asad Ullah, FCS
Company Secretary
Chairman
Member
Member
Secretary
3/4
1/4
4/4
4/4
4/4
*The period of Dr. Abdur Rahman Khan has expired on 12 March 2020 and Mr. Mamtaz Uddin Ahmed has joined as Chairman of
the Audit Committee in place of Dr. Khan.
External Auditor
The Committee assessed the independence, objectivity and expertise of the independent auditors engaged to carry out the audit
for the year 2019-20. Based on the evaluation, the Committee proposed the Board to re-engage existing auditors M. J. Abedin
& Co., Chartered Accountants, for the year 2020-21 which shall be subject to the approval of the shareholders in the Annual
General Meeting.
Other Reviews and Activities
During 2019-20 the Committee also assessed and examined risk management process, monitored internal audit and compliance
process and reviewed the report thereon. The fi nancial 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 fi ndings that warrants for board or shareholders’ attention during the year under review.
Mamtaz Uddin Ahmed
Chairman
Audit Committee
Report of the Audit Committee | Annual Report 2019-20 | 79
Activities and other Details of
Nomination and Remuneration Committee (NRC)
Formation and Composition of the Committee
The Board of Directors of Beximco Pharmaceuticals Limited constituted the Nomination and Remuneration Committee as a sub
Committee of the Board. The Committee is independent of the Company’s executive management and is composed of three
members including one independent director, nominated by the Board. The Committee comprises the following members:
Membership
Representation in the Board
Position in the Committee
Mr. Shah Monjurul Hoque
Independent Director
Chairman
Mr. Iqbal Ahmed
Director
Mr. Osman Kaiser Chowdhury, FCA
Director
Member
Member
Mr. Mohammad Asad Ullah, FCS
Company Secretary
Secretary
Terms of Reference (ToR) of the Committee
The Board of the Directors sets out the ToR of the Committee in line with the corporate governance code issued by Bangladesh
Securities and Exchange Commission. The ToR of the Committee includes the following:
• Formulate policy on qualifications criteria, positive attributes and independence of Directors and top-level executives.
• Oversee the Company’s remuneration policy for the Directors and top-level executives and make appropriate recommendation
to the Board.
• Assist the Board to select persons qualified to be a Director or hold a top-level executive position fulfilling the pre-set nomination
criteria and recommend for their appointment.
• Devise a policy on Board’s diversity taking into consideration of age, gender, experience, ethnicity, educational background,
etc.
• Review the code of conduct of the Board on a periodic basis and recommend any amendments for Board’s consideration.
• Assist the Board to devise the criteria for evaluation of performance of Independent Directors and other Board members.
• Develop, recommend and review annually the Company’s human resources and training policies.
Meeting and Attendance
The Committee had one meeting during the year. All the three members attended the meeting. The proceedings of the meeting
were appropriately recorded. No member of the Committee received any remuneration other than the meeting attendance fee.
Nomination and Remuneration Policy
The Company has a written policy on nomination and appointment of Directors in the Board. The policy it sets out the detail
qualification and other eligibility norms for the members and the process of their nomination. The policy is fair and non-
discriminative. The Company is listed with AIM of London Stock Exchange and in compliance to AIM regulations it conducts
independent third party verification of the eligible candidates before their appointment as Directors.
All the Directors of the Board except the Managing Director are non-executive. The Company pays no remuneration to them
80 | Annual Report 2019-20 | Activities and other Details of Nomination and Remuneration Committee (NRC)
other than the fees for attending the Board and other committee meeting.
The Company has a well-structured policy on selection, recruitment and promotion of the senior level executives which is duly
authorized by the Board. The Managing Director and all other top-level executives are full-time employee of the Company.
They get fixed monthly salary and allowances as per terms of their service contracts. The Company has a robust performance
appraisal system linked to KPI. Performances are reviewed on an annual basis. Further details on the remuneration policy are
available in the report of Directors.
Activities carried out during the period
The Committee carried out the following activities in line with its Terms of Reference during the reporting period:
a. Evaluated the code of conduct for the Chairman and other Board members and made appropriate recommendation.
b. Reviewed the Company’s existing policy on remuneration to Directors and top executives.
c. Studied Company’s human resource and training policies.
d. Conducted an assessment of the qualification and other details of the Independent Director and made appropriate
recommendation to the Board.
Activities and other Details of Nomination and Remuneration Committee (NRC) | Annual Report 2019-20 | 81
investors overseas to update them about the ongoing business
of the Company. The fund managers and analysts at home
also holds pre-arranged meeting with our top management
to know the present and future potentials of the Company.
During the year, COO and CFO attended a total of 17 meetings
with the foreign investors.
Reporting to the Shareholders
The Company prepares unaudited fi nancial statements for
fi rst, second and third quarters and full year Audited Financial
Statements and publishes the summary of the fi nancial
statements through newspapers and online portals as required
by law. Detailed fi nancial statements are released through
the Company’s website. Additionally, the Company prepares
Annual Reports that contains detailed operational and fi nancial
information along with other statutory disclosures.
Company’s Reporting Calendar
Fi n a n c i a l s
Fi n a n c i a l s
Q1
Q2
November
January
Fi n a n c i a l s
Fi n a n c i a l s
Q3
April
Full
Year
Audited Financials
October
Fi n a n c i a l s
Annual
Report
Investor Relations
Communication with Shareholders and
Investors
The shareholders and investors are kept well informed of
the Company’s operation and performance through periodic
updates of price sensitive information, publications of fi nancial
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.
The Company regularly holds AGM as required by the
Companies 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.This year, the AGM of the Company will be held
virtually by using digital platform.
Beximco Pharma has a distinct Company Secretarial
Department adequately manned with qualifi ed professionals
to carry out the regulatory company secretarial functions and
to meet administrative enquiries from the shareholders and
investors. There is also a proactive investor relation team
within accounting and fi nance function to deal with investor
queries and complaints with high priority. During the year
under review, the Company has not received any complaints
from its shareholders/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 GDRs
82 | Annual Report 2019-20 | Investor Relations
Website Communication
their net earnings for the year as dividend. The rule further
specifi es that where a company declares both cash and stock
dividend, the amount of stock dividend must not exceed the
cash dividend.
Market Capitalization
Market capitalization of Beximco Pharma as on 30 June
2020 both in DSE/CSE and GDRs in the AIM of London Stock
Exchange are as follows:
Stock
Exchange
No. of
Securities
Closing
Price
(BDT/GBP)
Market
Capitalization
In BDT
(mln.)
In GBP
(mln.)
DSE/CSE
314,612,818
69.2
21,771 208.67
GDRs
90,943,627
0.355
3,368
32.28
405,556,445
25,139 240.95
The Company has a rich website (www.beximcopharma.com)
that contains historical as well as latest information about
the Company and its operation. The website is well organized
to meet information requirement of different stakeholders
and updated on a 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 other communications.
Dividend Policy
The Company does not have a declared dividend policy but
consistently paying dividend over the years based on its
earnings and availability of free cash. Bangladesh Companies
Act 1994 authorises the board of directors to make decision
on dividend which is to be approved by the shareholders in the
Annual General Meeting. Shareholders however, can’t approve
more dividend than what is recommended by the board.
Bangladesh Tax regulation provides for a penalising tax
provision for companies that fail to declare at least 30% of
GDRs Information
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
Investor Relations | Annual Report 2019-20 | 83
84 | Annual Report 2019-20 | Investor Relations
Value Added Statement
For the Year Ended 30 June 2020
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
Taka
%
100
23
27
6
7
37
100
29,924,359
(14,357,927)
15,566,432
3,625,707
4,131,651
1,013,804
1,055,017
5,740,253
15,566,432
37%
Duties & Taxes
to Govt. Exchequer
6%
Interest to
Lenders
7%
Dividend to
Shareholders
23%
Retained by
the Company
27%
Salaries and Benefits to
Employees
Value Added Statement | Annual Report 2019-20 | 85
Consolidated Financial Statements
Beximco Pharmaceuticals Ltd. and its Subsidiaries
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, 2020 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 Accounting year of the subsidiary companies- Beximco Pharma API Limited and Nuvista Pharma Limited, ends on the same date as of
the Company. We have audited the Financial statements of Beximco Pharma API Limited and expressed our unmodified opinion on those
statements vide our report dated October 28, 2020. The Financial Statements of Nuvista Pharma Limited was audited by A. Qasem & Co.
Chartered Accountants, who through their report dated October 21, 2020 have also expressed 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, 2020, 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 Consolidated 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. 35,000,809,631 as at June
30, 2020.
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.
Consolidated Financial Statements | Annual Report 2019-20 | 87
Risk
Our response to the risk
Valuation of Inventory
The inventory of Tk. 5,944,769,057as at June 30, 2020 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. 8 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. 35 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.
Consolidated Financial Statements | Annual Report 2019-20 | 88
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
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
Consolidated Financial Statements | Annual Report 2019-20 | 89
•
•
•
•
•
•
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.
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.
The engagement partner on the audit resulting in the independent auditor’s report is Hasan Mahmood, FCA
Dhaka
October 28, 2020
M. J. Abedin & Co.
Chartered Accountants
Consolidated Financial Statements | Annual Report 2019-20 | 90
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Financial Position
As at June 30, 2020
Notes
June 30, 2020
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Right-of-use Assets
Intangible Assets
Goodwill
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
EQUITY AND LIABILITIES
Equity Attributable to the Owners of the Company
Issued Share Capital
Share Premium
Excess of Issue Price over Face Value of GDRs
Capital Reserve on Merger
Revaluation Surplus
Unrealized Gain/(Loss)
Retained Earnings
Non-Controlling Interest
TOTAL EQUITY
Non-Current Liabilities
Long Term Borrowings-Net of Current Maturity
Liability for Gratuity and WPPF & Welfare Funds
Deferred Tax Liability
Current Liabilities and Provisions
Short Term Borrowings
Long Term Borrowings-Current Maturity
Creditors and Other Payables
Accrued Expenses
Dividend Payable
Income Tax Payable
TOTAL EQUITY AND LIABILITIES
4
4( a )
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Amount in Taka
June 30, 2019
35,949,930,818
33,853,977,656
202,689,556
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
276,006,553
29,864,323,837
6,603,936,369
2,595,607,792
1,860,904,996
2,147,423,581
37,069,663,021
35,000,809,631
240,163,919
1,275,560,330
546,691,213
3,751,551
2,686,377
13,049,078,919
5,944,769,057
775,528,787
3,305,451,434
2,388,313,122
-
-
635,016,519
50,118,741,940
32,495,120,607
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,125,767,451
926,375
20,058,799,733
302,329,006
32,797,449,613
5,963,327,323
1,651,590,390
2,144,053,434
2,167,683,499
11,357,965,004
12,745,832,154
7,398,361,360
1,454,311,995
1,462,806,200
739,512,826
17,086,213
285,886,410
9,272,501,280
1,616,670,549
1,091,809,722
590,317,150
7,235,215
167,298,238
50,118,741,940
49,214,092,360
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
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, 2020
Notes
July 2019 - June 2020
July 2018 - June 2019
Amount in Taka
22
23
26
27
28
29
30
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
Total Comprehensive Income Attributable to:
Owners of the Company
Non-controlling interest
25,611,947,655
(13,712,847,509)
11,899,100,146
(6,289,606,032)
(792,951,709)
(5,496,654,323)
5,609,494,114
293,558,304
(1,013,804,085)
-
4,889,248,333
(235,808,378)
4,653,439,955
(1,108,956,854)
(1,086,668,418)
(22,288,436)
3,544,483,101
3,514,687,301
29,795,800
3,544,483,101
(1,577,828)
3,542,905,273
3,513,109,473
29,795,800
3,542,905,273
22,816,629,795
(12,196,286,770)
10,620,343,025
(5,554,169,458)
(752,944,182)
(4,801,225,276)
5,066,173,567
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
3,033,402,333
7,000,621
3,040,402,954
(1,852,559)
3,038,550,395
3,031,549,774
7,000,621
3,038,550,395
Earnings Per Share (EPS)
31
8.67
7.48
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
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, 2020
As at June 30, 2020
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-
Controlling
Interests
Total Equity
Balance as on July 01, 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
Total Comprehensive Income:
Profit/(Loss) for the Year
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,514,687,301
3,514,687,301
29,795,800
3,544,483,101
-
(1,577,828)
-
(1,577,828)
-
(1,577,828)
(608,334,668)
(608,334,668)
(3,473,347)
(611,808,015)
(8,114,071)
2,028,518
-
-
8,114,071
-
-
2,028,518
-
-
-
2,028,518
Balance as on June 30, 2020
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,125,767,451
926,375
20,058,799,733
32,495,120,607
302,329,006
32,797,449,613
Net Asset Value (NAV) Per Share (Note-32)
80.12
As at 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
Equity
attributable to
Owners of the
Company
Non-
Controlling
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 Year
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100
100
-
3,033,402,333
3,033,402,333
7,000,621
3,040,402,954
(1,852,559)
-
(1,852,559)
-
(1,852,559)
(506,945,556)
(506,945,556)
(868,344)
(507,813,900)
(9,175,291)
(18,249,550)
-
-
9,175,291
-
-
(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-32)
72.96
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Consolidated Financial Statements | Annual Report 2019-20 | 93
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Cash Flows
For the year ended June 30, 2020
Notes
July 2019-June 2020
July 2018-June 2019
Amount in Taka
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
34
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment
Intangible Assets
Disposal of Property, Plant and Equipment
Dividend Received
Decrease in Short Term Investment
Net Cash Used in Investing Activities
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings
Net Increase/(Decrease) in Short Term Borrowings
Share capital
Dividend Paid
Net Cash (Used in) / 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
13
33
25,934,454,695
(18,467,458,543)
22,463,550,299
(17,434,690,241)
7,466,996,152
5,028,860,058
(1,012,519,091)
20,409,291
(932,399,131)
5,542,487,221
(1,032,409,014)
36,457,527
(1,072,991,667)
2,959,916,904
(2,243,555,782)
(31,745,002)
3,646,251
1,427,930
323,364,536
(4,416,446,385)
(128,619,282)
17,540,625
1,491,901
16,032,638
(1,946,862,067)
(4,510,000,503)
(1,000,373,112)
(1,970,741,462)
-
(601,957,017)
(3,573,071,591)
22,553,563
610,494,299
1,968,657
635,016,519
(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
13.67
7.30
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
Consolidated Financial Statements | Annual Report 2019-20 | 94
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharmaceuticals Limited and its Subsidiaries
Notes to the Financial Statements
As at and for the year ended June 30, 2020
1. The Reporting Entity
1.1 About the Company
Beximco Pharmaceuticals Limited (BPL/ the Company) is a public limited company incorporated in Bangladesh in 1976. 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 in 1973 as a private limited company. In 2006 the foreign shareholding 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 became 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 domestic market.
Both BPL and NPL provide 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).
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.
Consolidated Financial Statements | Annual Report 2019-20 | 95
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. The Financial Statements cover 12 months period starting from July 01,2019 to June 30,
2020.
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 and 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.
3.2 Inter-Company Transactions
Assets, Liabilities, Equity, Income, Expenses and Cash Flows arising out of transactions between the Company and the subsidiaries 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.
This represents value of 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 to produce specialized pharmaceutical products in Seri
Iskandar Pharmaceutical Park, Perak, Malaysia. BioCare is considered to be an associate of BPL as per IAS 28: Investment in Associates
and Joint Ventures.
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, 2020. Beximco Pharma has not recognized
30% share of the accumulated loss of the company exceeding the value of investment of Tk 29,325,720 by an amount of Tk. 19,813,172
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.
Consolidated Financial Statements | Annual Report 2019-20 | 96
4. Property Plant and Equipment
As on June 30, 2020
Amount in Taka
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Property Plant &
Equipment
Right-of-use
Assets
Total
Cost
As on July 01, 2019
Additions
Transferred in & Capitalized
Disposal during the Year
4,067,829,596
-
-
-
7,820,306,150
1,964,386
-
-
15,758,504,631
76,637,502
-
(68,147,647)
314,394,814
16,059,142
-
-
832,159,558
8,650,472
-
(13,523,004)
594,975,443
23,204,371
-
(1,327,600)
29,388,170,192
126,515,873
-
(82,998,251)
312,742,914
81,724,782
-
-
29,700,913,106
208,240,655
-
(82,998,251)
Cost As on June 30, 2020
4,067,829,596
7,822,270,536 15,766,994,486
330,453,956
827,287,026
616,852,214
29,431,687,814
394.467,696
29,826,155,510
Accumulated Depreciation
As on July 01, 2019
Depreciation Charged
Fair Value Depreciation
Adjustment for Assets disposed off
Accumulated Depreciation As on
June 30, 2020
-
-
-
1,988,863,726
188,862,087
2,363,364
-
6,205,719,687
667,013,870
9,652,060
(34,640,793)
142,895,364
17,051,814
-
-
563,820,219
59,343,002
-
(9,928,860)
386,007,571
34,309,438
-
(984,456)
9,287,306,567
966,580,211
12,015,424
(45,554,109)
110,053,358
44,250,419
-
-
9,397,359,925
1,010,830,630
12,015,424
(45,554,109)
-
2,180,089,177
6,847,744,824
159,947,178
613,234,361
419,332,553
10,220,348,093
154,303,777
10,374,651,870
Net Book Value June 30, 2020
4,067,829,596
5,642,181,359
8,919,249,662
170,506,778
214,052,665
197,519,661
19,211,339,721
240,163,919
19,451,503,640
Capital Work in Progress
Carrying Value as on June 30, 2020
Carrying Value as on June 30, 2019
4 (a). Right-of-use Assets
At Cost
Accumulated Depreciation
5. Intangible Assets
Cost
As on July 01, 2019
Addition During the year
As on June 30, 2020
Amortization
As on July 01, 2019
Amortized During the year
As on June 30, 2020
Balance as on June 30, 2020
Balance as on June 30, 2019
Particulars
15,789,469,910
-
15,789,469,910
35,000,809,631
240,163,919
35,240,973,550
33,853,977,656
202,689,556
34,056,667,212
June 30, 2020
394,467,696
(154,303,777)
240,163,919
Amount in Taka
June 30, 2019
312,742,914
(110,053,358)
202,689,556
Product
development,
Licensing and
Marketing Rights
ERP Project
Trade Name
& Trade
Marks
Total
1,319,952,047
29,103,370
167,103,702
2,641,632
54,000,000
-
1,541,055,749
31,745,002
1,349,055,417
169,745,334
54,000,000 1,572,800,751
203,974,051
72,236,000
-
16,710,370
2,160,000
2,160,000
206,134,051
91,106,370
276,210,051
16,710,370
4,320,000
297,240,421
1,072,845,366
153,034,964
49,680,000 1,275,560,330
1,115,977,996
167,103,702
51,840,000 1,334,921,698
Consolidated Financial Statements | Annual Report 2019-20 | 97
6. Goodwill
This is carried forward from the previous year and relates to acquisition of Nuvista Pharma Limited (Note 3.4). There has been no indica-
tion of impairment of goodwill during the year.
7. Other Investments
a. Investment Datails (Taka)
Bangladesh Export Import Co. Ltd.
Central Depository Bangladesh Ltd. (CDBL)
b. Number of Shares:
Bangladesh Export Import Co. Ltd.
Central Depository Bangladesh Ltd. (CDBL)
Balance
July 01, 2019
Addition/ Adjustment
Unrealised Gain/(Loss)
3,759,929
1,569,450
5,329,379
(1,577,828)
-
(1,577,828)
Balance
July 01, 2019
167,854
571,182
Amount in Taka
Balance
June 30, 2020
2,182,101
1,569,450
3,751,551
Balance
June 30, 2020
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 2019-2020 was Tk. 13.00 (2018-2019: Tk.22.40). The fair value loss of
Tk. 1,577,828 has been accounted for as Other Comprehensive Income following IFRS:9 Financial Instruments.
d. Shares of Central Depository Bangladesh Ltd.(CDBL) are not traded . The value at acquisition is considered to be the fair value as on the
Balance Sheet date.
8. 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
9. Spares & Supplies
This consists of as follows :
Spares & Accessories
Stock of Stationery
Literature & Other Materials
Miscellaneous Item
Consolidated Financial Statements | Annual Report 2019-20 | 98
June 30, 2020
1,128,728,172
294,258,178
3,089,296,983
960,326,569
64,584,938
69,468,235
15,232,992
322,872,990
5,944,769,057
660,313,987
14,209,600
101,005,200
-
775,528,787
Amount in Taka
June 30, 2019
1,255,181,983
455,530,899
2,710,825,646
1,098,348,379
44,838,125
85,135,960
12,004,065
262,166,621
5,924,031,678
579,804,147
13,100,977
133,118,401
103,737
726,127,262
10. Accounts Receivable
This consists of :
Trade Receivable
Other Receivable
June 30, 2020
3,088,509,497
216,941,937
3,305,451,434
Amount in Taka
June 30, 2019
3,244,703,035
90,255,870
3,334,958,905
Accounts Receivable is reported net of provision for bad debts of Tk. 6,554,783. It includes an amount of Tk. 817,658,851, equivalent
USD 9,710,913 (June 30, 2019: Tk. 771,731,426, USD 9,214,704) receivable 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. 1,969,764,709 due from I & I Services Ltd., who provides distribution service to the Company and a
“Related Party”. The maximum amount due from the company during the year was Tk. 2,719,264,917 on April 30, 2020.
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.
Aging of Trade Receivables :
Amount due within 6 months
Amount due for 6 months & above
11. Loans, Advances and Deposits
This is unsecured, considered good and consists of as follows :
Clearing & Forwarding
VAT
Claims Receivable
Security Deposit & Earnest Money
Lease Deposit
Capital Expenditure/ Project
Expenses
Bank Guarantee Margin
Salary Advance / Loan
Rent Advance
Motor Cycle
Raw & Packing Material
Prepaid Insurance
Overseas Liaison Office
Others
3,036,824,038
51,685,459
3,088,509,497
3,171,871,132
72,831,903
3,244,703,035
281,675,299
441,074,569
6,636,489
83,541,576
10,821,850
209,723,000
264,086,628
35,585,120
161,306,524
29,898,335
154,443,129
442,658,728
155,346,536
40,724,614
70,790,725
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
2,388,313,122
2,309,503,747
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 project loan which is an integral part of the overseas loan financing agreement with ODDO BHF Aktiengesellschaft,
Frankfurt, Germany.
Consolidated Financial Statements | Annual Report 2019-20 | 99
12. Short Term Investment
The Company has fully recalled the Short Term Investment with Bangladesh Export Import Company Limited (Beximco Ltd.).
13. Cash and Cash Equivalents
This consists of as follows :
a. Cash in Hand (including Imprest Cash)
b. Cash at Bank :
Current & FC Account
FDR Account
14. Issued Share Capital
a. Authorized :
1,000,000,000 Ordinary Shares of Tk. 10 each
50,000,000 fully convertible 5 % Preference Shares of Tk. 100 each
b. Issued, Subscribed and Paid-up :
51,775,750 Ordinary Shares fully paid-up in cash
316,538,298 Ordinary Shares issued as stock dividend
5,951,250 Ordinary Shares issued in Exchange of Shares of Beximco Infusions
Ltd.
31,291,147 Ordinary Shares issued on conversion of Preference Shares
June 30, 2020
Amount in Taka
June 30, 2019
170,478,822
235,292,449
426,156,203
38,381,494
635,016,519
338,805,413
36,396,437
610,494,299
10,000,000,000
5,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000
15,000,000,000
517,757,500
3,165,382,980
517,757,500
3,165,382,980
59,512,500
59,512,500
312,911,470
4,055,564,450
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.
90,943,627 Ordinary Shares have been issued as underlying shares for the GDRs listed with AIM of London Stock Exchange.
c. Composition of Shareholding :
Sponsors:
A S F Rahman
Salman F Rahman
Other Directors and Associates
Public Issue:
GDRs- AIM of London Stock Exchange
Foreign Portfolio Investors (DSE/CSE)
Institutions (ICB, ICB Investors Accounts & Others)
Individual Shareholders
June 30, 2020
June 30, 2019
Number of shares
% of Share
Capital
Number of
shares
% of Share
Capital
8,235,353
8,254,632
37,019,789
53,509,774
90,943,627
48,720,273
148,762,402
63,620,369
352,046,671
405,556,445
2.03
2.04
9.13
8,235,353
8,254,632
37,019,789
2.03
2.04
9.13
13.20
53,509,774
13.20
22.42
12.01
36.68
15.69
90,943,627
60,060,586
136,573,957
64,468,501
86.80
352,046,671
100.00
405,556,445
22.42
14.81
33.67
15.90
86.80
100.00
Consolidated Financial Statements | Annual Report 2019-20 | 100
15. Non-controlling Interest
Non-controlling Interest (Opening )
Proportionate profit/loss (NPL)
Less Cash Dividend (NPL)
Share Capital - Beximco Pharma API Limited (API)
16. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Amount in Taka
June 30, 2020
June 30, 2019
276,006,553
29,795,800
(3,473,347)
-
269,874,176
7,000,621
(868,344)
100
302,329,006
276,006,553
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
1,437,978,890
1,974,611,879
Lease Liability
Term Loan-AB Bank Limited
Dhaka Bank Ltd.
Lease Liability
This consists of as follows:
Within one year
Within two to five years
17. Liability for Gratuity and WPPF & Welfare Funds
Gratuity Payable
Workers Profit Participation and Welfare Fund
18. Short Term Borrowings
Janata Bank Ltd. - Cash Credit-Hypothecation Loan
AB Bank Limited
Liability for UPAS Letter of credit
First Security Islamic Bank Ltd.
Dhaka Bank Ltd.
208,860,444
-
4,751,056
247,375,215
330,410,281
43,210,417
1,651,590,390
2,595,607,792
108,115,288
208,860,444
316,975,732
165,766,263
247,375,215
413,141,478
1,185,669,111
1,040,022,968
958,384,323
820,882,028
2,144,053,434
1,860,904,996
3,963,918,204
1,106,352,880
1,406,768,304
510,491,234
410,830,738
5,336,101,392
2,491,112,625
873,810,482
-
571,476,781
7,398,361,360
9,272,501,280
Consolidated Financial Statements | Annual Report 2019-20 | 101
19. Long Term Borrowings-Current Maturity
This consists of as follows:
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Lease Liability
Term Loan-AB Bank Limited
Dhaka Bank Ltd
20. Creditors and Other Payables
Goods & Services
Provident Fund
Advance Against Sales
Others
21. Accrued Expenses
This is unsecured, falling due within one year and consists of as follows :
For Expenses
Workers’ Profit Participation and Welfare Funds -(Current year)
Amount in Taka
June 30, 2020
June 30, 2019
937,110,252
108,115,288
377,802,906
31,283,549
860,104,664
165,766,263
462,991,847
127,807,775
1,454,311,995
1,616,670,549
575,012,150
726,878,755
12,393,114
148,522,181
573,345,769
403,722,991
23,952,936
90,788,026
1,462,806,200
1,091,809,722
503,704,448
235,808,378
739,512,826
389,379,916
200,937,234
590,317,150
Consolidated Financial Statements | Annual Report 2019-20 | 102
22. Net Revenue
Domestic Sales
Export Sales
Toll Income
23. Cost of Goods Sold
This is made-up as follows :
Work-in-Process (Opening)
Materials Consumed (Note: 24)
Factory Overhead (Note: 25)
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)
24. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
July 2019-
June 2020
Amount in Taka
July 2018-
June 2019
22,808,998,367
20,300,942,074
2,751,790,244
2,502,632,517
51,159,044
13,055,204
25,611,947,655
22,816,629,795
455,530,899
10,054,371,739
3,623,979,789
262,723,223
9,840,645,571
3,165,298,448
14,133,882,427
13,268,667,242
(294,258,178)
(455,530,899)
13,839,624,249
12,813,136,343
1,255,181,983
864,137,218
15,094,806,232
13,677,273,561
(253,230,551)
(225,804,808)
(1,128,728,172)
(1,255,181,983)
13,712,847,509
12,196,286,770
3,854,012,150
3,182,574,225
10,314,568,079
10,512,083,496
(4,114,208,490)
(3,854,012,150)
10,054,371,739
9,840,645,571
Consolidated Financial Statements | Annual Report 2019-20 | 103
25. Factory Overhead
Salary & Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Advertisement
Registration & Renewals
Travelling & Conveyance
Entertainment
Research and Development
Rent
Printing & Stationery
Telephone, Cell Phone, Internet & Postage
Toll Expense
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Security Expenses
Other Expenses
26. Administrative Expenses
Salary & Allowances
Rent
Repairs and Maintenance
Registration & Renewals
Travelling & Conveyance
Entertainment
Printing & Stationery
Audit Fee
Telephone, Cell Phone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
Business Acquisition Cost
Company Secretarial, Regulatory Fee and AGM Expense
Municipal Tax & Land Revenue
Advertisement
Training & Conference
Depreciation
Meeting Fee
Security Expenses
Other Expenses
Consolidated Financial Statements | Annual Report 2019-20 | 104
Amount in Taka
July 2019-
June 2020
July 2018-
June 2019
1,345,684,174
1,188,378,116
391,224,077
36,933,338
9,034,338
-
19,443,939
27,128,815
2,801,983
357,815,843
31,563,027
2,340,256
39,992
12,214,261
13,607,099
2,406,063
272,389,951
284,160,790
4,756,535
30,094,938
9,599,588
231,429,690
252,097,664
6,129,368
37,358,555
920,137,361
21,979,283
5,756,192
-
30,586,880
9,563,197
211,045,966
185,846,861
5,847,370
26,970,395
776,720,982
19,223,665
6,967,685
3,623,979,789
3,165,298,448
458,035,801
422,172,373
23,948,000
58,709,365
5,019,043
29,587,058
6,881,179
5,572,906
2,195,000
5,927,093
13,770,520
15,823,054
-
34,599,077
463,682
-
6,630,474
35,015,790
2,301,650
11,209,371
77,262,646
21,596,203
52,754,516
11,157,571
33,292,606
7,452,594
9,623,113
2,090,000
8,389,087
15,238,998
10,931,928
2,876,555
27,156,197
1,294,203
72,068
12,734,287
29,897,226
1,108,950
9,011,269
74,094,438
792,951,709
752,944,182
27. Selling, Marketing and Distribution Expenses
Salary & Allowances
Rent
Repairs and Maintenance
Travelling & Conveyance
Entertainment
Printing & Stationery
Telephone, Cell Phone, Internet & Postage
Software & Licences
Electricity, Gas & Water
Market Research & New Products
Training & Conference
Insurance Premium
Sample Expense
Advertisement
Field Operation
Events, Programs & Campaigns
Brand Development
CSR Expenses
Sales Promotion Expenses
Books, Journal and Periodicals
Salesforce Logistics
Clinincal Studies and Research
Pharmacovigilance
Literature and News Letter
Registration & Renewals
Export Insurance, Freight and C&F Expenses
Distribution Commission
Delivery Expense
Depreciation & Amortization
Security Expenses
Bad Debts
Other Expenses
July 2019-
June 2020
Amount in Taka
July 2018-
June 2019
2,092,122,649
1,746,110,649
82,034,461
15,310,108
86,475,238
10,265,214
567,898,731
520,316,148
56,439,513
37,381,062
58,915,054
26,876,458
15,361,760
69,374,568
112,364,209
29,966,989
315,070,105
2,555,997
44,293,568
186,559,672
106,570,287
81,344,051
138,324,168
8,705,778
32,042,162
5,002,419
14,768,459
209,372,035
62,603,853
225,789,212
376,830,927
335,270,945
158,799,273
19,941,269
3,692,812
5,071,769
54,522,468
36,718,700
31,583,013
2,659,362
10,614,278
57,305,983
103,797,825
32,048,113
286,686,387
2,633,824
61,562,536
224,353,163
90,550,386
15,344,589
79,557,840
8,276,327
19,773,552
4,652,433
11,394,312
207,829,781
87,161,934
273,539,867
260,673,378
315,948,856
136,144,095
18,179,874
2,894,595
1,650,556
5,496,654,323
4,801,225,276
Consolidated Financial Statements | Annual Report 2019-20 | 105
28. Other Income
Interest Income
Dividend Income
Royalty
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)
Sale of Miscellaneous Item
Profit/(Loss) on Sale of Fixed Assets
29. Finance Cost
Interest on Bank Borrowings
Interest on Lease Liability
Interest on Loan from PF, WPPF & Welfare Fund
Other Bank Charges
30. Income Tax Expenses
This consists of as follows :
(a) Current Tax
(b) Deferred Tax Expense
31. Earnings Per Share (EPS)
July 2019-
June 2020
20,409,291
1,427,930
151,552,031
139,620,667
13,196,829
1,149,448
(33,797,892)
293,558,304
Amount in Taka
July 2018-
June 2019
36,457,527
1,491,901
95,941,689
23,646,180
(20,010,341)
952,663
1,438,046
139,917,665
787,650,804
28,711,869
166,837,043
30,604,369
824,858,713
60,109,947
128,075,983
16,717,899
1,013,804,085
1,029,762,542
1,086,668,418
22,288,436
1,108,956,854
803,760,846
101,901,936
905,662,782
(a) Earnings attributable to the Owners of the Company
3,514,687,301
3,033,402,333
(b) Weighted average number of Shares outstanding during the year
405,556,445
405,556,445
Earnings Per Share (EPS)
8.67
7.48
32. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Less Non-controlling Interest
Equity Attributable to the Owners of the Company
Number of Ordinary Shares
Net Asset Value (NAV) Per Share
Amount in Taka
June 30, 2020
June 30, 2019
50,118,741,940
49,214,092,360
(17,321,292,327)
(19,349,768,523)
(302,329,006)
(276,006,553)
32,495,120,607
29,588,317,284
405,556,445
405,556,445
80.12
72.96
Consolidated Financial Statements | Annual Report 2019-20 | 106
33. Net Operating Cash Flow Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Ordinary Shares
Net Operating Cash Flow Per Share (NOCFPS)
July 2019-
June 2020
Amount in Taka
July 2018-
June 2019
5,542,487,221
2,959,916,904
405,556,445
405,556,445
13.67
7.30
34. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
3,544,483,101
3,040,402,954
Adjustment to reconcile net profit to net cash provided by operating activities :
(a) Non-cash Expenses :
Depreciation
Amortization
Gratuity & WPPF
Exchange rate fluctuation (Gain) / Loss on Foreign Currency Bank Loan
Deferred Tax
(b) Non-operating Items
Dividend Income
(Profit) / Loss on sale of Fixed Assets
Effect of exchange rate changes on Cash and Cash Equivalents
1,409,987,996
1,022,846,054
91,106,370
283,148,438
(9,401,302)
22,288,436
30,401,305
(1,427,930)
33,797,892
(1,968,657)
1,606,962,596
868,369,303
74,393,000
536,738,498
25,559,859
101,901,936
26,190,223
(1,481,833)
(1,438,046)
(215,618)
Share of Loss of Associates
-
29,325,720
(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
Net cash Generated from Operating Activities
557,634,819
(1,713,638,869)
(20,737,379)
(49,401,525)
29,507,471
35,681,115
(78,809,375)
3,634,939
370,996,478
148,154,924
118,588,172
(865,183,997)
(62,216,166)
(573,449,512)
(3,112,607)
(215,273,845)
(221,598)
100,096,815
171,840,255
(266,118,214)
5,542,487,221
2,959,916,904
Consolidated Financial Statements | Annual Report 2019-20 | 107
35. Related Party Disclosures
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.
(ii) Bangladesh Export Import Co. Ltd
Nature of Transactions
Value of Transaction Balance at year end
Local Delivery
Distribution Commission
Short Term Investment &
Interest there on
23,912,620,326
376,830,927
341,614,550
1,969,764,709
-
b. Related party transaction between the Company and its subsidiaries have been eliminated in the consolidation.
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Cheif Financial Officer
Dhaka
October 28, 2020
Consolidated Financial Statements | Annual Report 2019-20 | 108
Financial Statements- Beximco Pharma- Standalone
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 June 30, 2020 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
June 30, 2020, 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. 33,244,656,330 as at June
30, 2020.
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 financial statements and
that there is significant measurement uncertainty involved in this
valuation.
See Note No. 4 to the 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.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 111
•
•
•
Risk
Our response to the risk
Valuation of Inventory
The inventory of Tk. 5,528,438,165 as at June 30, 2020 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 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
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. 49 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.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 112
•
•
•
•
•
•
•
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 auditor’s 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.
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.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 113
•
•
•
•
•
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 financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s 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.
The engagement partner on the audit resulting in the independent auditor’s report is Hasan Mahmood, FCA
Dhaka
October 28, 2020
M. J. Abedin & Co.
Chartered Accountants
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 114
Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2020
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Right-of-use Assets
Intangible Assets
Investment in Subsidiaries
Investment In Associates
Other Investments
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, 2020
4
4 (c)
5
6
7
8
9
10
11
12
13
14
15
16
4(b)
17
18
19
20
21
22
23
24
36,240,980,000
33,244,656,330
237,100,169
580,960,330
2,145,185,900
29,325,720
3,751,551
12,438,793,173
5,528,438,165
735,703,950
3,213,666,345
2,345,039,872
-
615,944,841
48,679,773,173
32,356,359,135
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,125,767,451
926,375
19,920,038,261
5,692,973,418
1,641,924,046
2,015,304,583
2,035,744,789
10,630,440,620
6,987,530,622
1,421,497,401
1,332,058,976
609,401,272
16,803,657
263,148,692
48,679,773,173
Amount in Taka
June 30, 2019
34,999,402,741
32,010,669,238
198,770,806
610,121,698
2,145,185,900
29,325,720
5,329,379
12,793,492,489
5,573,549,171
715,341,316
3,325,890,597
2,273,040,821
323,364,536
582,306,048
47,792,895,230
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
47,792,895,230
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
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, 2020
Notes
July 2019 -
June 2020
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
25
26
29
30
31
32
33
23,557,775,896
(12,753,521,901)
10,804,253,995
(5,690,899,854)
(699,940,325)
(4,990,959,529)
5,113,354,141
445,556,500
(957,931,515)
4,600,979,126
Amount in Taka
July 2018 -
June 2019
21,156,331,039
(11,365,929,686)
9,790,401,353
(4,991,627,668)
(663,362,904)
(4,328,264,764)
4,798,773,685
245,184,534
(938,074,846)
4,105,883,373
(219,094,244)
(195,518,256)
Profit Before Tax
4,381,884,882
3,910,365,117
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profit after Tax
Other Comprehensive Income - Unrealized Gain/(Loss)
Total Comprehensive Income
Earnings Per Share (EPS)
35
36
34
(1,018,485,009)
(983,282,880)
(35,202,129)
3,363,399,873
(1,577,828)
3,361,822,045
(886,864,143)
(792,365,900)
(94,498,243)
3,023,500,974
(1,852,559)
3,021,648,415
8.29
7.46
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 116
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, 2020
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
Amount in Taka
Balance as on July 01, 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
Total Comprehensive Income for
the Year :
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(8,114,071)
2,028,518
-
(1,577,828)
3,363,399,873
-
3,363,399,873
(1,577,828)
-
-
-
(608,334,668)
(608,334,668)
8,114,071
-
-
2,028,518
Balance as on June 30, 2020
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,125,767,451
926,375
19,920,038,261
32,356,359,135
Net Asset Value (NAV) Per Share (Note-37)
79.78
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
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 Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(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)
-
-
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
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 117
Beximco Pharmaceuticals Limited
Statement of Cash Flows
For the year ended June 30, 2020
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 2019 -
June 2020
24,096,145,079
(17,060,430,359)
7,035,714,720
(957,931,515)
20,409,291
(887,432,426)
Net Cash Generated from Operating Activities
39
5,210,760,070
Amount in Taka
July 2018 -
June 2019
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
(2,224,544,487)
(31,745,002)
-
3,572,001
21,454,903
323,364,536
(1,907,898,049)
(4,451,047,318)
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 (Used in)/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
(959,164,164)
(1,713,493,877)
(598,533,844)
(3,271,191,885)
31,670,136
582,306,048
1,968,657
615,944,841
(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
12.85
6.72
14
38
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2020 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Dhaka
October 28, 2020
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, 2020
1. Reporting entity
1.1. About the company
Beximco Pharmaceuticals Limited (BPL/ the Company) is a Public Limited Company incorporated in Bangladesh in 1976. 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. 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. 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).
2.2. Basis of Measurement
The financial statements have been prepared on Historical Cost Basis except land, building and plant & machinery revalued on December
31, 2008, investment in shares of listed company being valued at year end quoted price and the cash flow statement being prepared on
cash basis.
2.3. 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 comprise of:
a. Statement of Financial Position as at the end of the year June 30, 2020;
b. Statement of Profit or Loss and Other Comprehensive Income for the year ended June 30, 2020;
c. Statement of Changes in Equity for the year ended June 30, 2020;
d. Statement of Cash Flows for the year ended June 30, 2020; 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, 2019 to June 30, 2020. The last audited financial statements were
prepared for the year ending June 30, 2019. 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, 2020.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 119
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 is recognized when the company fulfills
the performance obligations in contract with the customers. It usually occurs when customers take possession of the products or goods are
delivered at destination specified in the contracts and 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. Right-of-use Assets
IFRS 16: Leases has introduced a single on-balance sheet lease accounting model for leases and replaces the previously adopted
IAS 17: Leases. The standard requires that an asset acquired under a lease be recognized as Right of use Asset and the corresponding
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 120
liability as lease liability. The Leasee shall measure the lease liability at the present value of the future lease payment discounted using the
interest rate implicit in the lease. The asset shall be depreciated over the lease period and the interest on the lease shall be charged as
finance expense.
The Company has been consistently recording its underlying assets acquired under lease as Assets and the corresponding obligation as
Lease Liabilities in the financial statements. The company has reclassified the assets acquired under the lease into “Right-of-use Assets”
and presented them in the Statement of Financial Position following IFRS 16. Interest costs on lease liabilities and depreciation of right-of-
use Assets are charged to the profit or loss account.
3.4. 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
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.
3.5. 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. Financial Instruments comprise Financial Assets and Financial Liabilities which are recognized, classified, measured and reported
following IFRS-9: Financial Instruments.
3.5.1. Financial assets
Financial assets of the company include cash and cash equivalents, accounts receivable, other receivables and investments
in marketable securities.
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.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 121
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.
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, Gratuity & Bad debts 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.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 122
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 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 (WPPF)
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.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 123
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- Standalone | Annual Report 2019-20 | 124
4 . Property, Plant and Equipment
As on June 30, 2020
Amount in Taka
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Property
Plant &
Equipment
Right-of-use
Assets
Total
Cost
As on July 01, 2019
Additions
Transferred in & Capitalized
Disposal during the Year
Cost as on June 30, 2020
3,343,741,442
-
-
-
7,497,797,147
1,964,386
-
-
14,503,959,431
59,327,454
-
(68,147,647)
267,440,926
13,630,814
-
-
690,157,709
5,219,741
-
(9,372,204)
568,771,334
18,322,149
-
(1,278,000)
26,871,867,989
98,464,544
-
(78,797,851)
308,467,914
81,724,782
-
-
27,180,335,903
180,189,326
-
(78,797,851)
3,343,741,442
7,499,761,533
14,495,139,238
281,071,740
686,005,246
585,815,483
26,891,534,682
390,192,696
27,281,727,378
Accumulated Depreciation
As on July 01, 2019
Depreciation Charged
Adjustment for Assets disposed off
Accumulated Depreciation as on June 30, 2020
-
-
-
-
1,934,157,220
182,499,881
-
5,704,119,053
602,789,053
(34,640,793)
118,839,763
14,860,116
-
463,605,963
40,958,686
(5,820,178)
365,410,593
30,330,293
(942,296)
8,586,132,592
871,438,029
(41,403,267)
109,697,108
43,395,419
-
8,695,829,700
914,833,448
(41,403,267)
2,116,657,101
6,272,267,313
133,699,879
498,744,471
394,798,590
9,416,167,354
153,092,527
9,569,259,881
Net Book Value June 30, 2020
3,343,741,442
5,383,104,432
8,222,871,925
147,371,861
187,260,775
191,016,893
17,475,367,328
237,100,169
17,712,467,497
Capital Work in Progress 4 (a)
Carrying Value as on June 30, 2020
As on June 30, 2019
15,769,289,002
-
15,769,289,002
33,244,656,330
237,100,169
33,481,756,499
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Property
Plant &
Equipment
Right-of-use
Assets
Total
Cost
As on July 01, 2018
Additions
Transferred in & Capitalized
Reclassified as Right-of-use Assets
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
-
(308,467,914)
(16,485,538)
542,239,692
25,435,247
1,096,395
-
-
24,008,785,368
1,598,769,443
1,611,111,798
(308,467,914)
(38,330,706)
-
-
-
308,467,914
24,008,785,368
1,598,769,443
1,611,111,798
-
(38,330,706)
Cost as on June 30, 2019
3,343,741,442
7,497,797,147
14,503,959,431
267,440,926
690,157,709
568,771,334
26,871,867,989
308,467,914
27,180,335,903
Accumulated Depreciation
As on July 01, 2018
Depreciation Charged
Reclassified as Right-of-use Assets
Adjustment for Assets disposed off
Accumulated Depreciation as on 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
(109,697,108)
(13,851,547)
334,366,427
31,044,166
-
-
7,961,275,349
756,961,575
(109,697,108)
(22,407,224)
-
-
109,697,108
-
7,961,275,349
756,961,575
-
(22,407,224)
1,934,157,220
5,704,119,053
118,839,763
463,605,963
365,410,593
8,586,132,592
109,697,108
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
226,551,746
203,360,741
18,285,735,397
198,770,806
18,484,506,203
Capital Work in Progress 4 (a)
Carrying Value as on June 30, 2019
13,724,933,841
-
13,724,933,841
32,010,669,238
198,770,806
32,209,440,044
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 125
4 (a) Capital Work in Progress is arrived at as follows :
June 30, 2020
June 30, 2019
Amount in Taka
Opening Balance
Addition during the year
Transferred & Capitalized
Building and Other Constructions
Plant & Machinery
Furniture & Fixture
Office Equipment
13,724,933,841
2,044,355,161
15,769,289,002
-
-
-
-
-
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)
Closing balance at end of year
15,769,289,002
13,724,933,841
4 (b). Revaluation Surplus
Opening Balance
Adjustment for depreciation on revalued assets
Adjustment for Deferred Tax on revalued assets
4 (c). Right-of-use Assets
At Cost
Accumulated Depreciation
5. Intangible Assets
1,131,853,004
(8,114,071)
2,028,518
1,159,277,845
(9,175,291)
(18,249,550)
1,125,767,451
1,131,853,004
390,192,696
(153,092,527)
237,100,169
308,467,914
(109,697,108)
198,770,806
Particulars
Product development,
Licensing and Marketing
Rights
ERP Project
Total
Cost
As on July 01, 2019
Addition During the year
As on June 30, 2020
Amortization
As on July 01, 2019
Amortized During the year
As on June 30, 2020
618,952,047
29,103,370
648,055,417
175,934,051
44,196,000
220,130,051
167,103,702
2,641,632
169,745,334
-
16,710,370
16,710,370
786,055,749
31,745,002
817,800,751
175,934,051
60,906,370
236,840,421
Carrying Value as on June 30, 2020
427,925,366
153,034,964
580,960,330
Carrying Value as on June 30, 2019
443,017,996
167,103,702
610,121,698
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 126
6. Investment in Subsidiaries
Nuvista Pharma Ltd.
Beximco Pharma API Ltd.
June 30, 2020
2,125,186,000
19,999,900
2,145,185,900
Amount In Taka
June 30, 2019
2,125,186,000
19,999,900
2,145,185,900
a. The Company acquired 10,013,474 shares representing 85.22% of the Paid Up Capital of Nuvista Pharma Ltd (NPL) . The investment in
subsidiary represents the cost of the aforesaid acquisition.
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).
c. Investment in subsidiaries has been accounted for using cost method as per IAS 27: Separate Financial Statements, in preparing financial
statements of the Company.
7. Investment in Associates
This represents value of 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 to produce specialized pharmaceutical products in Seri
Iskandar Pharmaceutical Park, Perak, Malaysia. BioCare is considered to be an associate of BPL as per IAS 28: Investment in Associates and
Joint Ventures. The Company follows Cost method for the investment as per IAS 27: Separate Financial Statements.
8. Other Investments
a. Investment Details (Taka):
Bangladesh Export Import Co. Ltd.(Note c)
Central Depository Bangladesh Ltd. (CDBL)
b. Number of Shares:
Bangladesh Export Import Co. Ltd.
Central Depository Bangladesh Ltd. (CDBL)
July 01, 2019
Addition/ Adjustment
Unrealised Gain/(Loss)
3,759,929
1,569,450
5,329,379
(1,577,828)
-
(1,577,828)
June 30, 2020
2,182,101
1,569,450
3,751,551
July 01, 2019
June 30, 2020
167,854
571,182
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 2019-2020 was Tk. 13.00 (2018-2019: Tk.22.40). The fair value loss
of Tk. 1,577,828 has been accounted for as Other Comprehensive Income following IFRS:9 Financial Instruments.
d. Shares of Central Depository Bangladesh Ltd.(CDBL) are not traded . The value at acquisition is considered to be the fair value as on the
Balance Sheet date.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 127
9. Inventories
Amount in Taka
This consists of as follows :
June 30, 2020
June 30, 2019
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 & Other Materials
11. Accounts Receivable
This consists of :
Trade Receivable
Other Receivable
972,564,349
249,838,762
2,955,008,164
921,692,743
38,688,339
69,468,235
15,232,992
305,944,581
5,528,438,165
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
649,953,543
14,209,600
71,540,807
735,703,950
569,443,182
13,100,977
132,797,157
715,341,316
2,978,567,354
235,098,991
3,213,666,345
3,235,634,727
90,255,870
3,325,890,597
Accounts Receivable is reported net of provision for bad debts of Tk. 5,144,353. It includes an amount of Tk. 817,658,851, equivalent USD
9,710,913 (June 30, 2019: Tk. 771,731,426, USD 9,214,704) receivable 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. 1,969,764,709 due from I & I Services Ltd., who provides distribution service to the Company and
a “Related Party”. The maximum amount due from the company during the year was Tk. 2,719,264,917 on April 30, 2020. Additionally Tk
17,612,694 and Tk. 544,360 is receivable from subsidiary companies- Nuvista Pharma Ltd. and Beximco Pharma API Ltd. respectively.
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.
Aging of Trade Receivables :
Amount due within 6 months
Amount due for 6 months & above
2,930,309,371
48,257,983
2,978,567,354
3,167,422,788
68,211,939
3,235,634,727
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 128
12. Loans, Advances and Deposits
Amount in Taka
This is unsecured, considered good and consists of as follows :
June 30, 2020
June 30, 2019
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
281,675,299
419,480,062
6,636,489
76,960,836
10,821,850
209,723,000
263,194,117
35,585,120
157,725,898
29,898,335
154,443,129
442,658,728
150,084,798
40,724,614
65,427,597
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
2,345,039,872
2,273,040,821
a. The maximum amount due from the employees during the year was Tk. 161,359,843 on May 31, 2020.
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 Aktiengesellschaft,
Frankfurt, Germany.
13. Short Term Investment
The Company has fully recalled the Short Term Investment with Bangladesh Export Import Company Limited (Beximco Ltd.).
14. Cash and Cash Equivalents
This consists of as follows :
a. Cash in Hand (including Imprest Cash)
b. Cash at Bank :
Current & FC Account
FDR Account
June 30, 2020
Amount in Taka
June 30, 2019
170,283,669
235,175,572
407,279,678
38,381,494
615,944,841
310,734,039
36,396,437
582,306,048
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 129
15. Issued Share Capital
a. Authorized :
1,000,000,000 Ordinary Shares of Tk. 10 each
50,000,000 Fully convertible 5 % Preference Shares of Tk. 100 each
b. Issued, Subscribed and Paid-up :
Amount in Taka
June 30, 2020
June 30, 2019
10,000,000,000 10,000,000,000
5,000,000,000
5,000,000,000
15,000,000,000
15,000,000,000
51,775,750 Ordinary Shares fully paid-up in cash
316,538,298 Ordinary Shares Issued as stock dividend
517,757,500
517,757,500
3,165,382,980
3,165,382,980
5,951,250 Ordinary Shares issued in Exchange of Shares of Beximco Infusions Ltd.
59,512,500
59,512,500
31,291,147 Ordinary Shares issued on conversion of Preference Shares
312,911,470
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.
90,943,627 Ordinary Shares have been issued as underlying shares for the GDRs listed with AIM of London Stock Exchange.
c. Composition of Shareholding:
Sponsors:
A S F Rahman
Salman F Rahman
Other Directors and Associates
Public Issue:
GDRs- AIM of London Stock Exchange
Foreign Portfolio Investors (DSE/CSE)
Institutions (ICB, ICB Investors Accounts & Others)
Individual Shareholders
June 30, 2020
June 30, 2019
Number of
shares
% of Share
Capital
Number of
shares
% of Share
Capital
8,235,353
8,254,632
37,019,789
53,509,774
90,943,627
48,720,273
148,762,402
63,620,369
352,046,671
405,556,445
2.03
2.04
9.13
8,235,353
8,254,632
37,019,789
13.20
53,509,774
22.42
12.01
36.68
15.69
86.80
90,943,627
60,060,586
136,573,957
64,468,501
352,046,671
100
405,556,445
2.03
2.04
9.13
13.20
22.42
14.81
33.67
15.91
86.80
100
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 130
d. Distribution Schedule of Ordinary Shares:
Range of Holdings
In number of shares
1 to 499
500 to 5,000
5,001 to 10,000
10,001 to 20,000
20,001 to 30,000
30,001 to 40,000
40,001 to 50,000
50,001 to 100,000
100,001 to 1,000,000
Over 1,000,000
No. of Shareholders
% of Shareholders
Number of Shares
% of Share Capital
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
41,587
12,340
1,059
484
159
81
58
129
162
42
41,958
12,144
980
469
154
77
70
121
163
41
74.13%
22.00%
1.89%
0.86%
0.28%
0.14%
0.10%
0.23%
0.29%
0.07%
100%
74.69%
21.62%
1.74%
0.83%
0.27%
0.14%
0.12%
0.22%
0.29%
0.07%
6,052,732
18,684,552
7,555,392
6,983,130
4,044,868
2,832,929
2,666,648
9,472,994
50,405,277
296,857,923
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
100%
405,556,445
405,556,445
1.49%
4.61%
1.86%
1.72%
1.00%
0.70%
0.66%
2.34%
12.43%
73.20%
100%
1.45%
4.40%
1.73%
1.65%
0.94%
0.66%
0.79%
2.14%
12.68%
73.56%
100%
Total
56,101
56,177
e. Market Price of Ordinary Shares:
The shares are listed with Dhaka and Chittagong Stock Exchanges of Bangladesh while the GDRs with the AIM of London Stock Exchange. Price of each
Share / GDR on the last working day of the fiscal year were:
Dhaka Stock Exchange
Chittagong Stock Exchange
AIM
June 30, 2020
June 30, 2019
Tk.
Tk.
GBP
69.20
69.10
0.355
83.50
84.30
0.389
f. Option on unissued Ordinary Shares :
There is no option on unissued shares as on June 30, 2020.
16. Excess of Issue Price over Face Value of GDRs
This represents excess of issue price of GDRs over the face value of underlying 28,175,750 ordinary shares issued against the same number of GDRs less
GDRs issue expenses.
17. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Amount in Taka
June 30, 2020
June 30, 2019
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
1,437,978,890
Lease Liability
Term Loan- AB Bank Limited
203,945,156
-
1,641,924,046
1,974,611,879
239,710,340
330,410,281
2,544,732,500
a. Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
This represents part of the foreign currency loan of US$ 51.559 million and Euro 24.386 million to partially finance the machinery and equipment for
expansion and diversification project being implemented by the Company. US Dollar loan carries interest at 6 month’s USD LIBOR plus 2.25% while Euro
loan is priced at 6 month’s EURIBOR plus 1.30% interest per annum. Both the loans are secured by exclusive first charge by way of hypothecation against
machinery and equipment procured under the pertinent loans.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 131
b. Lease Liability
This consists of as follows:
Within one year
Within two to five years
c. Term Loan-AB Bank Limited
June 30, 2020
106,584,243
203,945,156
310,529,399
Amount in Taka
June 30, 2019
164,157,902
239,710,340
403,868,242
This loan is payable in quarterly installments and is secured by hypothecation along with Janata Bank on all fixed and floating assets of the
Company excepting the machinery and equipment financed by ODDO BHF Aktiengesellschaft, Frankfurt, Germany. The loan maturing in the
current period has been reported under Long Term Borrowing - Current Maturity.
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-Note : 34 (b)
Adjustment for Deferred Tax on revalued amount
Closing Balance at end of the Year
20. Short Term Borrowings
Janata Bank Ltd. - Cash Credit-Hypothecation Loan
AB Bank Limited
Liability for UPAS Letter of credit
First Security Islamic Bank Ltd.
933,437,744
184,425,140
1,117,862,884
(60,942,624)
1,056,920,260
958,384,323
2,015,304,583
660,004,303
306,176,739
966,181,042
(32,743,298)
933,437,744
815,463,050
1,748,900,794
2,002,571,178
1,889,823,385
35,202,129
(2,028,518)
94,498,243
18,249,550
2,035,744,789
2,002,571,178
3,963,918,204
1,106,352,880
1,406,768,304
510,491,234
6,987,530,622
5,336,101,392
2,491,112,625
873,810,482
-
8,701,024,499
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 132
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 hypothecation of fixed and floating assets of the Company excepting the machinery
and equipment financed by ODDO BHF Aktiengesellschaft, Frankfurt, Germany.
d. The borrowing from First Security Islami Bank Ltd represents a Bai-Murabaha (Hypo) investment limit of Tk.50 crore approved for
purchasing raw and packing materials. The facility is secured by corporate guarantee and second charge by way of hypothecation on
present and future fixed and floating assets of the company.
21. Long Term Borrowings-Current Maturity
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Lease Liability
Term Loan-AB Bank Limited
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)
24. Income Tax Payable
Opening Balance
Provision for the year
Short / (Excess) Provision for previous year
Advance Income Tax Paid
25. Net Sales Revenue
Domestic Sales
Export Sales
June 30, 2020
937,110,252
106,584,243
377,802,906
Amount in Taka
June 30, 2019
860,104,664
164,157,902
462,991,847
1,421,497,401
1,487,254,413
485,464,404
726,878,755
12,393,114
107,322,703
518,625,291
403,722,991
23,952,936
90,788,026
1,332,058,976
1,037,089,244
390,307,028
219,094,244
609,401,272
167,298,238
983,282,880
-
1,150,581,118
(887,432,426)
263,148,692
300,660,035
195,518,256
496,178,291
433,416,452
809,208,912
(16,843,012)
1,225,782,352
(1,058,484,114)
167,298,238
July 2019 -
June 2020
July 2018 -
June 2019
20,805,985,652
2,751,790,244
23,557,775,896
18,653,698,522
2,502,632,517
21,156,331,039
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 133
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:
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
July 2019 -
June 2020
July 2018 -
June 2019
6,778.75
114.54
-
190,552
438,734
5,778.50
111.96
6,572
163,538
379,012
Unit
Million pcs.
Million pcs.
Pcs
Kg
Liter
b. Export Sales in foreign currency equivalent amounts to US$ 32,745,911 in 2019-20 as against US$ 30,064,573 in 2018-19.
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)
Item wise quantity and value of Finished Goods Stock are as follows :
Stock as June 30, 2020
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable, Inhaler and Insulin
Active Pharmaceutical Ingredients
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
July 2019 -
June 2020
Amount in Taka
July 2018 -
June 2019
420,135,832
205,169,517
9,491,277,964
9,461,947,813
3,153,943,937
2,749,978,649
13,065,357,733
12,417,095,979
(249,838,762)
(420,135,832)
12,815,518,971
11,996,960,147
1,155,804,007
744,138,733
13,971,322,978
12,741,098,880
(245,236,728)
(219,365,187)
(972,564,349)
(1,155,804,007)
12,753,521,901
11,365,929,686
Unit
Quantity
Value (Tk.)
Million pcs.
Million pcs.
Kg
451.57
7.23
5,674
535,160,110
421,235,247
16,168,992
972,564,349
Unit
Quantity
Value (Tk.)
Million pcs.
Million pcs.
601.66
9.81
655,507,429
471,081,153
Active Pharmaceutical Ingredients
Kg
9,390
29,215,425
1,155,804,007
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 134
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
Rent
Printing & Stationery
Telephone, Cell Phone, Internet & Postage
Toll Expense
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Security Expenses
Other Expenses
July 2019 -
June 2020
3,690,300,531
9,716,366,679
(3,915,389,246)
9,491,277,964
1,164,060,001
278,944,645
33,154,830
7,485,850
-
19,443,939
24,252,401
2,058,287
242,175,885
4,756,535
28,658,943
9,599,588
245,250,757
199,203,953
6,129,368
37,358,555
827,924,271
19,794,331
3,691,798
Amount in Taka
July 2018 -
June 2019
2,983,410,526
10,168,837,818
(3,690,300,531)
9,461,947,813
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
3,153,943,937
2,749,978,649
a. Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 21,084,619
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. Travelling & Conveyance includes foreign travel Tk. 3,284,085 ( in 2018-19 Tk. 4,346,488 )
d. Other expenses does not include any item exceeding 1% of total revenue.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 135
29. Administrative Expenses
Amount in Taka
Salary & Allowances
Rent
Repairs and Maintenance
Registration & Renewals
Travelling & Conveyance
Entertainment
Printing & Stationery
Audit Fee
Telephone, Cell Phone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
Business Acquisition Cost
Company Secretarial, Regulatory Fee and AGM Expense
Advertisement
Training & Conference
Depreciation
Meeting Fee
Security Expenses
Other Expenses
July 2019 -
June 2020
July 2018 -
June 2019
402,132,499
369,071,303
12,494,000
49,579,163
5,019,043
25,983,471
5,745,084
4,869,332
1,800,000
4,102,321
11,669,432
15,679,054
-
34,599,077
-
4,853,033
32,019,171
2,013,650
11,209,371
76,172,624
699,940,325
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
72,954,974
663,362,904
a. Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 7,771,231
b. Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
c. Meeting fee is paid to the Directors for attending Board and other Committee Meetings.
d. Travelling & Conveyance includes foreign travel Tk. 10,163,463 ( in 2018-19 Tk.11,803,905)
e. Other expenses does not include any item exceeding 1% of total revenue.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 136
30. Selling, Marketing and Distribution Expenses
Salary & Allowances
Rent
Repairs and Maintenance
Travelling & Conveyance
Entertainment
Printing & Stationery
Telephone, Cell Phone, Internet & Postage
Software & Licences
Electricity, Gas & Water
Market Research & New Products
Training & Conference
Insurance Premium
Sample Expense
Advertisement
Field Operation
Events, Programs & Campaigns
Brand Development
CSR Expenses
Sales Promotion Expenses
Books, Journal and Periodicals
Salesforce Logistics
Clinical Studies and Research
Pharmacovigilance
Literature and News Letter
Registration & Renewals
Export Insurance, Freight and C&F Expenses
Distribution Commission
Delivery Expense
Depreciation & Amortization
Security Expenses
Bad Debts
Other Expenses
July 2019 -
June 2020
Amount in Taka
July 2018 -
June 2019
1,814,891,870
1,505,566,145
77,674,161
11,169,984
501,475,286
55,361,967
36,243,329
48,665,728
26,876,458
14,609,690
61,977,278
106,900,944
27,514,266
303,551,534
339,292
38,162,913
181,475,156
103,983,835
79,166,624
124,237,987
7,590,396
16,732,466
5,002,419
14,768,459
189,320,900
62,136,798
225,789,212
376,830,927
335,270,945
115,796,376
19,941,269
2,983,000
4,518,060
82,061,605
6,533,997
456,534,374
53,789,575
35,647,182
21,656,034
2,659,362
9,779,736
49,003,151
98,146,246
30,611,846
277,485,580
524,550
54,193,966
219,091,710
84,315,097
15,344,589
59,348,518
7,267,968
6,220,243
4,652,433
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
4,990,959,529
4,328,264,764
a. Salary and allowances include Company’s Contribution to provident fund amounting to Tk. 36,231,843.
b. Distribution commission is paid to I & I Services Ltd., a “ Related Party” for rendering distribution services throughout the country.
c. Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
d. Sample expense includes VAT on sample.
e. Travelling & Conveyance includes foreign travel Tk. 9,794,247 ( in 2018-19 Tk. 4,734,661 )
f. Other expenses does not include any item exceeding 1% of total revenue.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 137
31. Other Income
Interest Income
Dividend Income
Royalty
Distribution Commission Income
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)
Income from sale of materials
Profit/(Loss) on Sale of Fixed Assets (Note 41)
July 2019 -
June 2020
20,409,291
21,454,903
172,940,165
111,757,229
139,620,667
13,196,829
-
(33,822,584)
445,556,500
Amount in Taka
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
a. Taka 21,388,134 of the Royalty income comes from licensing of 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 net FOB value of export of finished pharmaceutical formulation products
subject to fulfillment of certain conditions. The incentive claimed during the reporting period 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 gain of Tk. 9,401,302 has
arisen from the translation of outstanding foreign currency loan from ODDO BHF Aktiengesellschaft, Frankfurt, Germany at the exchange
rate prevailing on the financial position date.
32. Finance Cost
Interest on Bank Borrowings
Interest on Lease Liability
Interest on Loan from PF, WPPF & Welfare Fund
Other Bank Charges
33. Contribution to WPPF & Welfare Funds
733,669,187
27,790,746
166,837,043
29,634,539
957,931,515
734,759,832
59,643,281
128,075,983
15,595,750
938,074,846
This represents statutory contribution by the company as per Bangladesh Labour Act 2013. The amount is computed @ 5% of net profit
before tax (but after charging such contribution).
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 138
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
Total Tax
Deferred Tax Expense is arrived at as follows :
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred liability (Gratuity)
Bad Debts
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
Adjustment for Deferred tax on Revaluation Surplus
Deferred Tax charged to profit or Loss and Other Comprehensive Income
July 2019 -
June 2020
983,282,880
-
983,282,880
35,202,129
1,018,485,009
9,205,043,771
(1,056,920,260)
(5,144,353)
8,142,979,158
25%
2,035,744,789
2,002,571,178
33,173,611
2,028,518
35,202,129
Amount in Taka
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
Income Tax Expense
2019-20
2018-19
%
Tk.
%
Tk.
4,381,884,882
1,095,471,221
(96,362,751)
(20,943,100)
(1,072,745)
41,392,384
-
25.00%
-2.20%
-0.48%
-0.02%
0.94%
0.00%
23.24% 1,018,485,009
3,910,365,117
977,591,279
(94,689,032)
(3,546,927)
(74,595)
24,426,430
(16,843,012)
886,864,143
25.00%
-2.42%
-0.09%
-0.00%
0.62%
-0.43%
22.68%
a. Export Profits are subject to 12.5% Tax rate
b. 10% Tax deductible at source on the incentives as final tax liability on such income as per the Income Tax regulations
c. Dividend Income is taxable @ 20%
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 139
35. Other Comprehensive Income - Unrealized Gain/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares (Note-8 a )
Exchange Rate Fluctuation Gain or loss/adjustment
36. Earnings Per Share (EPS)
July 2019 -
June 2020
(1,577,828)
-
(1,577,828)
Amount in Taka
July 2018 -
June 2019
(428,429)
(1,424,130)
(1,852,559)
a. Earnings attributable to the Ordinary Shareholders
b. Weighted average number of Shares outstanding during the year (Note 3.15)
Earnings Per Share (EPS)
3,363,399,873
3,023,500,974
405,556,445
405,556,445
8.29
7.46
37. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Net Assets
Number of Ordinary Shares
Net Asset Value (NAV) Per Share
38. Net Operating Cash Flow Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Ordinary Shares
Net Operating Cash Flow Per Share (NOCFPS)
June 30, 2020
June 30, 2019
48,679,773,173
47,792,895,230
(16,323,414,038)
(18,192,051,990)
32,356,359,135
29,600,843,240
405,556,445
405,556,445
79.78
72.99
July 2019 -
June 2020
July 2018 -
June 2019
5,210,760,070
2,726,457,706
405,556,445
405,556,445
12.85
6.72
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 140
39. Reconciliation of Net Profit with Cash Flows from Operating Activities
July 2019 -
June 2020
Amount in Taka
July 2018 -
June 2019
Profit after Tax
3,363,399,873
3,023,500,974
Adjustment to reconcile net profit to net cash provided by operating activities :
Non-cash Expenses :
Depreciation
Amortization
Gratuity & WPPF
Exchange rate fluctuation (Gain)/loss (Foreign Currency Bank Loan )
Deferred tax
Non-operating items:
Dividend Income
(Profit) /Loss 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
Net cash Generated from Operating Activities
40. Related Party Disclosures
1,267,944,433
1,445,651,201
914,833,448
756,961,575
60,906,370
44,193,000
266,403,789
524,438,524
(9,401,302)
35,202,129
25,559,859
94,498,243
10,399,024
(21,454,903)
33,822,584
(1,968,657)
(3,051,665)
(1,491,901)
(1,344,146)
(215,618)
569,016,740
(1,739,642,804)
45,111,006
(908,099,710)
(20,362,634)
112,224,252
(71,999,051)
294,969,732
113,222,981
(60,560,046)
(588,946,450)
(206,199,860)
97,551,009
192,730,467
95,850,454
(266,118,214)
5,210,760,070
2,726,457,706
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties
Nature of Transactions
a. I & I Services Ltd.
Local Delivery
Distribution Commission
b. Bangladesh Export Import Co. Ltd
Short Term Investment & Interest there on
c. Nuvista Pharma Ltd
Toll Manufacturing
Cost of services
Asset Transfer
Gratuity (Transferred Employee)
Dividend
Distribution Commission
d. Beximco Pharma API Limited
Short Term Advance
Value of
Transaction
Balance
Type
Balance at year
end
23,912,620,326
376,830,927
341,614,550
19,417,187
51,318,664
3,430,731
12,455,838
20,026,948
111,757,229
544,360
Dr.
1,969,764,709
Cr.
Dr.
Dr.
Dr.
-
1,730,683
4,191,977
-
-
-
13,420,717
544,360
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 141
41. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the year ended June 30, 2020:
Particulars of Assets
Cost
Accumulated
Depreciation
Written
Down Value
Sales Price
Profit /
(Loss)
Mode of
Disposal
Name of
Parties
Plant & Machinery
Office Equipment
68,147,647
34,640,793
33,506,854
-
(33,506,854) Retirement
N/A
1,278,000
942,296
335,704
8,000
(327,704) Negotiation
Individuals
Transport & Vehicle
9,372,204
5,820,178
3,552,026
3,564,001
11,975 Negotiation
Individuals
Total Taka
78,797,851
41,403,267
37,394,584
3,572,001
(33,822,584)
42. Payment / Perquisites to Managers and Directors
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
379,789,680
37,322,147
14,483,023
37,497,936
10,178,039
13,025,783
492,296,608
a. The above includes salary, allowances, and perquisites amounting Tk. 53,323,926 paid to the Managing Director.
b. No remuneration is paid to Directors of the board other than meeting attendance fees which has been separately reported.
c. No amount of money was expended by the Company for compensating any member of the board for special services rendered.
43. Production Capacity and Utilization
Item
Unit
Production Capacity
Actual Production
Capacity Utilization
July 19 to
June 20
July 18 to
June 19
July 19 to
June 20
July 18 to
June 19
July 19 to
June 20
July 18 to
June 19
Tablet, Capsule, Suppository & DPI
Million Pcs
5,842.87
5,560.19
6,586.29
6,125.42
112.72% 110.17%
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic, Nebulizer
Solution, Injectable, Inhaler and Insulin
Million Pcs
100.98
98.99
115.39
117.28
114.27% 118.48%
Production does not include goods manufactured under contract manufacturing arrangement from third party manufacturing sites.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 142
44. Capital Expenditure Commitment
There was no capital expenditure contracted but not incurred or provided for at June 30, 2020.
45. Claim not Acknowledged as Debt
There was no claim against the Company not acknowledged as debt as on June 30,2020.
46. Un-availed Credit Facilities
ODDO BHF Aktiengesellshaft, Frankfurt, Germany approved an ECA term loan of Euro 24.386 million to partially finance the machinery and
equipment for expansion project being implemented by the Company. An amount of Euro 4.59 million has been disbursed as on Balance
Sheet date. The remaining Euro 19.80 million is disbursable against procurement of the machinery & equipment.
47. Payments & Receipts Made in Foreign Currency :
Payments :
Materials, Spares and Capital Machinery,
Foreign Currency Loans, Fees & Expenses
Receipts :
Export Sales & Others
Foreign Currency
(Equivalent US$)
Taka
114,834,021
9,744,198,289
14,780,165
1,244,489,856
Foreign Currency
(Equivalent US$)
Taka
33,464,524
2,811,262,283
48. 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.
49. 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.
50. Events after The Reporting Period
50.1 The directors recommended 15% cash dividend (i.e. Tk. 1.50 per share) and 10% stock dividend (i.e. 10 shares for every 100 shares
held) for the year 2019-20. The dividend proposal is subject to shareholders’ approval at the forthcoming Annual General Meeting.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 143
50.2 Board of Directors of Nuvista Pharma Limited (NPL)- a subsidiary of BPL has declared Cash dividend @ 35%, i.e. Tk. 3.50 per share for
the financial year ended on June 30, 2020. The proposed dividend is subject to approval of the shareholders of NPL in their Annual General
meeting.
50.3 The COVID-19 pandemic that began in Bangladesh since early March 2020 continued to disrupt social and economic activities of the
country as with the world. The government announced countrywide lockdown from 26 March which lasted till the end of May. The healthcare
and certain other essential services though remained exempted from the lockdown, ensuring uninterrupted production and supply with
highest priority on the health and safety of the employees was indeed challenging. Management took various mitigating measures to
confront this unforeseen situation and continued its production and supply of products overcoming the challenges. Directors are continually
reviewing the local and global situation of the pandemic and the associated risks affecting the operation of the business.
As the country gradually adapts to the new environment, the economy started showing signs of recovery in the post balance sheet period.
While there are uncertainties how the COVID-19 situations evolve and affects the business in the future, given the currently prevailing
situation, directors believe that there is no material adverse effect of the pandemic on the business’s continuity in the foreseeable future.
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.
51. 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
51.1 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, 2020 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.
51.2 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.
51.3 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.
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 144
a. 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.
b. 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.
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Dhaka
October 28, 2020
Financial Statements- Beximco Pharma- Standalone | Annual Report 2019-20 | 145
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 2020 together with the Auditors’ Report thereon.
1. Operating Performance
We concluded year 2019-20 with remarkable achievement despite a challenging economic and business environment prevailing
throughout the fourth quarter of the year. To contain the spread of Covid-19, the Government announced lockdown from 26th
March imposing restrictions at varying degrees on social and business activities with limited exceptions. This lasted till the end
of May 2020, affecting the entire fourth quarter of the fiscal year under review. Like all other businesses, the pandemic impacted
the healthcare services across the country; Doctors refrained from private practices and visits to hospitals and clinics declined
significantly. In this hard time, our key challenge was to ensure uninterrupted production and supply of essential medicines
across the country with highest priority on the health and safety of our employees. We took various measures to cope up with
the unforeseen challenge and managed to keep the impact of the pandemic on the operational performance of the Company at
its minimum.
Our sales revenue increased by a significant 24.2% to reach a new height of Tk. 2,073.6 million in 2019-20 as against Tk.
1,669.4 million of preceding year. All of our key therapeutic segments recorded double digit growth. During the year, we added
5 new products in our portfolio and got encouraging market response. They contributed Tk. 73.7 million in sales in the first year
of introduction, which shows their strong growth potential. Also in 2019-20, we generated Tk. 70.57 million from rendering Toll
Services as compared to Tk. 22.15 million of 2018-19.
The Company earned an after-tax net profit of Tk. 243.8 million in 2019-20 as against Tk. 89.6 million in 2018-19. Impressive
achievement of sales, improved gross margin predominantly for the revenue mix and proper containment of operating expenses
helped attain such a growth in net profit. The Net Operating Cash Flow (NOCFPS) and the Net Asset Value (NAV) per share
increased to Tk. 28.2 and Tk. 64.8 in 2019-20 from Tk. 19.9 and Tk. 46.1 respectively, of the previous year.
2. Profit and its Appropriation
Net Profit before tax
Provision for tax
Net Profit 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 2020
334,282,670
(90,471,845)
243,810,825
222,649,477
(23,500,320)
442,959,982
Amount in Taka
Year ended 30
June 2019
108,379,564
(18,798,639)
89,580,925
133,936,896
(868,344)
222,649,477
(41,125,560)
401,834,422
(23,500,320)
199,149,157
Directors’ Report to the Shareholders | Annual Report 2019-20 | 147
3. Dividend
The Board of Directors recommends 35% cash dividend i.e. Tk. 3.50 per share for the year ended 30 June 2020 to the
Shareholders subject to the approval of the Shareholders in the Annual General Meeting (AGM) of the Company.
4. Board of Directors
The current Board of Directors is composed of:
Mr. Nazmul Hassan, MP : 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
5. Retirement and Re-Election of Director
The Board appointed Mr.Nazmul Hassan, MP as Director of the Company in its meeting held on 13 May 2018. 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. Nazmul Hassan, MP retires by rotation and being
eligible, offer himself for re-election as Director and is placed for approval by the shareholders in the AGM.
6. Auditors
The existing auditors A. Qasem & Co., Chartered Accountants, who were appointed as auditors of the Company in the 45th AGM
of the Company carried out the audit for the year ended 30 June 2020.
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 2021 subject to the approval of the shareholders in the 46th AGM of the
Company. The Board recommends for reappointment of A. Qasem & Co., Chartered Accountants as auditors of the Company for
the year ended on 30 June 2021.
On behalf of the Board,
Nazmul Hassan, MP
Chairman
21 October 2020
Annual Report 2019-20 | Directors’ Report to the Shareholders | 148
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 2020, 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 2020,
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.
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 149
-
-
-
-
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.
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)
(b)
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;
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, 21 October 2020
A. Qasem & Co.
Chartered Accountants
Partner: Mohammad Motaleb Hossain, FCA
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 150
Nuvista Pharma Limited
Statement of financial position
As at 30 June 2020
ASSETS
Notes
30 June 2020
30 June 2019
Amount in Taka
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
Inventories
Trade receivables
Cash and cash equivalents
Total assets
EQUITY AND LIABILITIES
Shareholders’ equity
Share capital
Reserves and surplus
Non-current liabilities
Lease liabilities - long term portion
Long term bank borrowings
Deferred liability - gratuity payable
Deferred tax liabilities
Current liabilities and provisions
Lease liabilities - current portion
Short term bank borrowings
Trade payables
Liabilities for expenses
Income tax payable
Other liabilities
Total liability
Total equity and liabilities
4
5
6
7
6
20
8
9
10
11
12
13
14
15
16
13
17
18
19
20
21
1,144,501,502
180,908
2,686,377
1,147,368,787
39,692,624
3,580,626
-
456,155,729
111,672,826
18,976,993
630,078,798
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
1,777,447,585
1,719,904,703
117,501,600
643,897,646
761,399,246
4,915,288
4,751,056
128,748,851
131,938,710
270,353,905
1,531,045
442,114,287
89,547,746
132,720,796
22,737,718
57,042,842
745,694,434
1,016,048,339
1,777,447,585
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
The annexed notes 1 to 36 form an integral part of these financial statements.
Chairman
Managing Director
Director
Dhaka, 21 October 2020
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 2020
Revenue
Cost of goods sold
Gross profit
General and administration expenses
Selling and distribution expenses
Profit from operations
Non-operating income
Interest expenses
Profit before tax and WPPF
Contribution to WPPF
Profit before tax
Tax expense
Current
Deferred
Profit after tax
Other comprehensive income
Notes
30 June 2020
Amount in Taka
30 June 2019
22
23
24
25
26
27
20
16
2,073,588,946
1,669,392,491
(966,727,371)
(833,024,115)
1,106,861,575
(92,526,184)
836,368,376
(88,443,477)
(608,640,157)
(543,485,224)
405,695,234
204,439,675
1,174,140
(55,872,570)
350,996,804
(16,714,134)
334,282,670
(103,385,538)
12,913,693
(90,471,845)
243,810,825
-
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
-
Total comprehensive income for the year
243,810,825
89,580,925
Earnings Per Share (EPS)
20.75
7.62
The annexed notes 1 to 36 form an integral part of these financial statements.
Chairman
Managing Director
Director
Dhaka, 21 October 2020
As per our report of same date
A. Qasem & Co.
Chartered Accountants
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 152
Nuvista Pharma Limited
Statement of changes in equity
For the year ended 30 June 2020
Particulars
Share
capital
General
reserve
Share
premium
Pre-
incorporation
profit
Revaluation
reserve
Retained
earnings
Total
reserves
and surplus
Total
Reserves and surplus
Amount in Taka
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
(868,344)
(868,344)
(868,344)
Profit after tax for the year ended 30 June 2019
-
-
-
-
-
89,580,925
89,580,925
89,580,925
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
Balance as at 1 July 2019
117,501,600 7,511,991 30,844,170
243,737 162,337,766 222,649,477
423,587,141
541,088,741
Dividend paid
(23,500,320)
(23,500,320)
(23,500,320)
Profit after tax for the year ended 30 June 2020
-
-
-
-
- 243,810,825
243,810,825
243,810,825
Balance as at 30 June 2020
117,501,600 7,511,991 30,844,170
243,737 162,337,766 442,959,982
643,897,646
761,399,246
Notes
11
12
12
12
12
12
12
Number of shares
Net assets value per share
The annexed notes 1 to 36 form an integral part of these financial statements.
11,750,160
64.80
Chairman
Managing Director
Director
Dhaka, 21 October 2020
As per our report of same date
A. Qasem & Co.
Chartered Accountants
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 153
Nuvista Pharma Limited
Statement of cash flows
For the year ended 30 June 2020
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
Notes
30 June 2020
30 June 2019
Amount in Taka
1,993,257,184
1,664,930,509
(1,562,034,912)
(1,322,231,151)
431,222,272
342,699,358
(54,587,576)
(94,334,168)
20
(44,966,705)
(14,507,553)
331,667,991
233,857,637
Purchase of property, plant and equipment including right of use assets
(19,011,295)
(59,670,116)
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
74,250
272,997
(18,937,045)
(59,397,119)
C.
Cash flows from financing activities
Long term bank borrowings
Short term bank borrowings
Lease finance-payment for right of use assets
Dividend paid
Net cash (used in)/from financing activities
(38,459,361)
(124,736,123)
(257,170,269)
(54,614,023)
(2,826,903)
(23,450,146)
9,273,236
(858,274)
(321,906,679)
(170,935,184)
D. Net increase/(decrease) in cash and cash equivalents (A+B+C)
(9,175,733)
3,525,334
E. Opening cash and cash equivalents
F. Closing cash and cash equivalents (D+E)
Net operating cash flow per share
Number of shares
The annexed notes 1 to 36 form an integral part of these financial statements.
28,152,726
24,627,392
18,976,993
28,152,726
28.23
19.90
11,750,160
11,750,160
Chairman
Managing Director
Director
Dhaka, 21 October 2020
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 154
As per our report of same date
A. Qasem & Co.
Chartered Accountants
Nuvista Pharma Limited
Notes to the financial statements
As at and for the year ended 30 June 2020
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.”
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 acquired majority shareholdings in Nuvista Pharma Limited (NPL)
and through this acquisition BPL has become the immediate and ultimate parent of the company. Current shareholding comprises
85.22% by BPL, 12.92% by Government of Bangladesh and rest by other local shareholders.
1.2
The address of the registered office of the company is Plot no. 107/A, Mascot Plaza (8th floor), Sonargaon Janapath, Sector-7,
Uttara C/A, Dhaka-1230, Bangladesh.
1.3
The company produces various pharmaceutical products including oral contraceptives, hormone, steroid, anti-histamine, anti-
fibrinolytic, anti-infective, gastrointestinal, musculoskeletal, respiratory, vitamin & mineral supplement and women’s health
products which are sold in the local market. The company also provides toll manufacturing services to other pharmaceutical
companies.
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 16 (see Note 4.3) from 1 July 2019. This new standard do not have a material effect on
the company’s financial statements.
2.2
Basis of measurement
The financial statements have been prepared on the historical cost basis except revaluation of certain property, plant and
equipment.
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 155
2.3
Functional and presentational currency
These financial statements are prepared in Bangladeshi Taka (Taka/Tk.), which is the company’s functional currency. All financial
information has been presented in Taka and rounded off to the nearest integer.
2.4
Use of estimates and judgments
The preparation of financial statements requires management to make judgment, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an on going basis.
2.5
Going concern
The company has adequate resources to continue its operation for the foreseeable future. For this reason the directors continue
to adopt going concern basis in preparing the financial statements. The current resources and credit facilities of the company are
sufficient to meet the present requirements of its existing business.
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 2019 to 30 June 2020.
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 Leases
IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the company, as a lessee, has recognised
right-of-use assets representing its rights to use the underlying assets and lease liabilities representing its obligation to make
lease payments.
The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right of use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or
before the commencement date, plus any initial direct costs incurred.
The right of use asset is depreciated using the straight line methods from the commencement date to the earlier of the end of the
useful life of the right of use asset or the end of the lease term.
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 156
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company’s incremental
borrowing rate.
3.2.1 Leased vehicle
The company has adopted IFRS 16 in preparing the financial statements and reclassified leased vehicle as “Right-of-use assets”
and disclosed it in note 4.3.
3.2.2 Office rent
As per IFRS 16, a contract is a lease if the contract conveys the right to control the use of an identified asset. As per terms of the
agreement of office rent (clause 4.13, 17(m), 4.8, 4.9, 4.15, 4.18, 4.23) lessor has the right to control the use of office building.
Furthermore, the lessee and lessor each has the right to terminate the lease by giving 90 days notice period without permission
from the other party with no penalty clause. As a result, the company considers office rent as off-balance sheet item.
3.3 Staff gratuity fund
The company operates an unfunded gratuity scheme, provision in respect of which is made annually for all eligible employees.
Gratuity payable to all eligible employees at the end of each year is determined on the basis of the existing rules and regulations
of the company.
3.4 Employees provident fund
The company subscribes to a contributory provident fund for its permanent employees which is administered by a Board of
Trustees.
3.5 Property, plant and equipment
3.5.1 Recognition and measurement
Property, plant and equipment (PPE) is recognised as an asset if it is probable that future economic benefits associated with the
asset will flow to the entity and the cost of the item can be measured reliably.
Property, plant and equipment are stated at cost or valuation less accumulated depreciation and impairment losses, if any. Cost
includes expenditure that is directly attributable to the acquisition of the assets, bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by management.
3.5.2 Subsequent costs
The costs of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the company and its costs can be measured
reliably. The costs of the day to day servicing of property, plant and equipment are recognised in the Statement of profit or loss
and other comprehensive income as incurred.
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 157
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 2020.
3.6.2 Calculation of recoverable amount
The recoverable amount of an asset is the greater of net selling price and value in use. The estimated future cash flows are
discounted to their present value using discount rate that reflects the current market assessment of the time value of money and
the risk specific to the asset. For an asset that does not generate significantly independent cash inflows, the recoverable amount
is determined for the cash generating unit to which the asset belongs.
3.6.3 Reversal of impairment
An impairment loss recognised in prior periods for an asset shall be reversed if, and only if, there has been a change in the
estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortization, had no impairment loss been recognised for the asset in prior years.
There was no reversal of impairment in the year ended 30 June 2020.
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.
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 158
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.
IFRS 9 contains three principal classification categories for financial assets such as measured at amortised cost, Fair Value
through Other Comprehensive Income (FVOCI) and Fair Value through Profit or Loss (FVTPL). The classification of financial assets
under IFRS 9 is generally based on the business model in which a financial asset is managed and the contractual cash flow
characteristics. IFRS 9 replaces the previous financial assets categories defined under IAS 39.
IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 159
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
Revenue is measured based on the consideration specified in a contract with a customer. The Company recognises revenue when
it transfers control over a good or service to a customer. The following steps provides information about the nature and timing
of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related
revenue recognition policies:
Identify the contract with a customer,
Identify the performance obligations in the contract,
Determine the transaction price,
Allocate the transaction price to the performance obligations in the contract and
Recognise revenue when the entity satisfies a performance obligation.
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 (but after charging such expense) as WPPF in accordance with Bangladesh
Labour Act 2006.
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 160
3.16 Standards adopted but not yet effective-IFRS 17: Insurance Contracts
A new Standard IFRS 17: Insurance Contracts, has been made effective for the reporting period beginning on or after 1 January
2021. This standard, however, has no material issue that might affect the reported financial statements of the company.
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 2019-20 | 161
4. Property, plant and equipment
Particulars
Land
Factory
building
Factory
warehouse
Plant and
machinery
Motor
vehicles
Amount in Taka
Computer
and IT
equipment
Equipment
and electric
fixtures and
fittings
Furniture
fittings
Total
Cost or valuation
As at 1 July 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
Addition/transfer during the year
8,510,998
3,430,731
4,882,222
8,799,050
2,428,328
28,051,329
Adjustment/disposal
As at 30 June 2020
Accumulated depreciation
As at 1 July 2019
Charge during the year
Adjustment/disposal
As at 30 June 2020
Net book value
275,608,713
236,790,594
18,193,678 480,657,004 145,556,780 31,036,729 685,633,073 49,382,216 1,922,858,787
(4,150,800)
(49,600)
(4,200,400)
-
48,293,922
3,458,379 171,317,721 100,570,506 20,596,978 318,217,838 24,055,601
686,510,945
5,907,364
454,842
23,384,127
19,239,316
3,979,145
40,840,690
2,191,698
95,997,182
(4,108,682)
(42,160)
(4,150,842)
-
54,201,286
3,913,221 194,701,848 115,701,140 24,533,963 359,058,528 26,247,299
778,357,285
As at 30 June 2020
275,608,713
182,589,308
14,280,457 285,955,156
29,855,640
6,502,766 326,574,545 23,134,917 1,144,501,502
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
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
Amount in Taka
30 June 2020
30 June 2019
80,197,666
2,996,619
12,802,897
95,997,182
79,655,332
3,403,571
16,333,401
99,392,304
The 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.
4.3. Right-of-use assets
Motor vehicle includes right-of-use assets amounts to Tk. 4,275,000 (2019: Tk. 4,275,000) and written down value of which amounts to Tk. 3,063,750
(2019: Tk. 3,918,750) related to leased property.
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 162
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
Car loan
General loan
Current portion of loan to employees
Balance as at 30 June
7. Advances, deposits and prepayments
Advance against operating expenses
Security deposits
VAT
Prepaid insurance
LC Margin
Others
Balance as at 30 June
As at
1 July
2019
-
-
-
-
7,280,190
900,000
8,180,190
Addition
during
the year
Transfer to
property, plant
and equipment
-
8,691,906
3,430,731
2,428,328
1,518,860
3,982,222
-
8,510,998
3,430,731
2,428,328
8,799,050
4,882,222
20,052,047
28,051,329
Amount in Taka
As at
30 June
2020
-
180,908
-
-
-
-
180,908
Amount in Taka
30 June 2020
30 June 2019
4,346,942
1,920,061
6,267,003
(3,580,626)
2,686,377
8,920,525
717,842
9,638,367
(3,317,051)
6,321,316
892,511
6,580,740
21,594,507
5,261,738
4,265,999
1,097,129
39,692,624
1,478,223
5,413,179
23,005,354
3,082,344
-
166,775
33,145,875
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 163
8. Inventories
Stocks
Finished goods
Semi-finished and Work-in-process
Raw materials
Chemicals
Packing materials
Materials-in-transit
Stores
Spares and accessories
Laboratory consumables
Miscellaneous items
Literature, brochure and other materials
Spares-in-transit
Amount in Taka
30 June 2020
30 June 2019
156,163,823
44,419,416
134,288,819
25,896,599
38,633,826
16,928,409
99,377,976
35,395,067
120,721,981
17,482,090
25,507,548
51,997,845
416,330,892
350,482,507
9,928,538
313,561
-
29,150,832
431,906
39,824,837
9,577,874
321,244
103,737
-
783,091
10,785,946
Balance as at 30 June
456,155,729
361,268,453
9. 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. 1,410,430.
10. 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
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 164
3,427,476
108,245,350
4,619,964
26,721,100
111,672,826
31,341,064
100,468
81,352
64,569
415,483
-
655
-
13,559,470
28,160
4,493,168
315,020
18,876,525
18,976,993
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
11. Share capital
Authorised
Amount in
Taka
30 June 2020
30 June 2019
50,000,000 Ordinary shares of Tk. 10 each
500,000,000
500,000,000
Issued, subscribed and paid-up
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
Shareholding position
117,501,600
117,501,600
Nominal value (Taka)
Percentage of holding (%)
30 June 2020
30 June 2019
30 June 2020
30 June 2019
Beximco Pharmaceuticals Limited
100,134,740
100,134,740
Government of Bangladesh
15,186,000
15,186,000
Other shareholders (2020:28; 2019:28)
2,180,860
2,180,860
117,501,600
117,501,600
85.22
12.92
1.86
100
85.22
12.92
1.86
100
11.1
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.
11.2
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).
12. Reserves and surplus
General reserve
Share premium (Note 12.1)
Pre-incorporation profit
Revaluation reserve (Note 12.2)
Retained earnings
Balance as at 30 June
30 June 2020
30 June 2019
7,511,991
30,844,170
243,737
162,337,766
442,959,982
7,511,991
30,844,170
243,737
162,337,766
222,649,477
643,897,646
423,587,141
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 165
12.1 Share premium
This represents the amount received on 48,959 ordinary shares @ Tk. 630 each issued in 1997.
12.2 Revaluation reserve
This represents revaluation surplus on revaluation of land made during 2006 and 2010.
13. Lease liabilities
Lease liabilities arising from leased vehicle as per IFRS 16 is as follows:
Not later than one year
Later than one year and not later than five years
14. Long term bank borrowings
Dhaka Bank Limited (Note 14.1)
Less: Current portion (Note 17)
Balance as at 30 June
14.1 Dhaka Bank Limited
Amount in Taka
30 June 2020
30 June 2019
1,531,045
4,915,288
6,446,333
1,608,361
7,664,875
9,273,236
36,034,605
171,018,192
(31,283,549)
(127,807,775)
4,751,056
43,210,417
This represents amount outstanding against the remaining instalments of the loan balances which were taken over by Dhaka Bank
Limited from The City Bank Limited and United Finance Limited on 29 March 2018.
This also represents amount outstanding against the term loans financed by Dhaka Bank Limited on various dates for setting up
the new Oral Solids facility and equipment at the factory.
14.2 Collateral
All loans are secured by a registered mortgage on specific factory land and buildings of the company.
14.3 Security
All loans are also secured with respect to the following:
a)
b)
c)
d)
Registered (1st charge) hypothecation on present and future plant and machinery, equipment, furniture and fixture of the
company.
Registered (1st charge) hypothecation over all stock, book debts and receivables of the company.
Shares held by Beximco Pharmaceuticals Ltd. are kept under lien with Dhaka Bank Ltd.
Corporate guarantee issued by Beximco Pharmaceuticals Limited.
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 166
15. Deferred liability - gratuity payable
Balance as at 1 July
Add : Provision made during the year
Add : Liability for transferred employees
Less: Payments made during the year
Balance as at 30 June
16. Deferred tax liabilities
Deferred tax liabilities arrived at as follows:
Amount in Taka
30 June 2020
30 June 2019
106,585,224
22,766,607
12,455,838
99,704,228
21,818,144
-
141,807,669
121,522,372
(13,058,818)
(14,937,148)
128,748,851
106,585,224
Carrying amount
on statement of
financial position
date
Tax base
Taxable/
(deductible)
temporary
difference
Year: 2019-2020
Property, plant and equipment
Provision for gratuity (net of payment)
Allowance for expected credit loss
Temporary difference
868,892,789
(128,748,851)
(1,410,430)
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
420,915,448
447,977,341
(128,748,851)
(1,410,430)
317,818,060
32.5%
15.0%
(103,290,869)
(28,647,841)
(131,938,710)
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 167
Carrying amount
on statement of
financial position
date
Tax base
Amount in Taka
Taxable/
(deductible)
temporary
difference
Year: 2018-2019
Property, plant and equipment
Provision for gratuity (net of payment)
Temporary difference
936,888,200
(106,585,224)
498,289,941
Applicable tax rate for items recognised in statement of comprehensive income
Applicable tax rate for items recognised in equity
Deferred tax Liabilities(b):
Deferred tax Liabilities on revaluation surplus
Net deferred tax liabilities
Deferred tax recognised in the statement of profit or loss and other comprehensive income in
2019-2020 (a-b)
438,598,259
(106,585,224)
332,013,035
35.0%
15.0%
(116,204,562)
(28,647,841)
(144,852,403)
12,913,693
Deferred tax recognised in the statement of profit or loss and other comprehensive income in
2018-2019
(7,403,693)
17. Short term bank borrowings
Bank overdrafts
Dhaka Bank Limited (Limit Tk.180,000,000)
Short term bank loans
Dhaka Bank Limited
Current portion of long term loan (Note 14)
Amount in Taka
30 June 2020
30 June 2019
77,213,282
77,213,282
86,077,696
86,077,696
333,617,456
485,399,085
333,617,456
485,399,085
31,283,549
127,807,775
442,114,287
699,284,556
Collateral and security given against short-term finance are a part of overall financing arrangement with Dhaka Bank Limited as
indicated in note 14. The interest rate is 9.0% -12.5% per annum and is payable on quarterly rests.
18. Trade payables
Trade payables
89,547,746
89,547,746
53,587,152
53,587,152
This represents amount due against purchase of raw, chemical and packing materials.
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 168
19. Liabilities for expenses
Accrued expenses
Audit fees
Accrued interest
20. Income tax payable
Balance as at 1 July
Add: Provision for the year
Less: AIT and treasury deposits during the year
Balance as at 30 June
21. Other liabilities
Salary and allowances
Provident fund dues
Workers’ profit participation fund
Tax deducted at source
VAT deducted at source
Net VAT payable
Tax on salaries
Final settlement of staff
Corporate social responsibility project
Commission payable
Unpaid dividend
22. Revenue
Net sales revenue
Toll income
Quantitative details of sales
Locally manufactured products
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
Unit
Tabs
Caps
Amps & Suspensions
Amount in Taka
30 June 2020
30 June 2019
128,588,968
450,000
3,681,828
132,720,796
97,117,035
482,500
2,396,834
99,996,369
(35,681,115)
103,385,538
(44,966,705)
(32,568,508)
11,394,946
(14,507,553)
22,737,718
(35,681,115)
1,877,366
2,457,329
16,714,134
914,214
-
16,424,262
600,790
4,351,474
-
13,420,717
282,556
57,042,842
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
22,026,605
2,003,012,715
70,576,231
1,647,243,552
22,148,939
2,073,588,946
1,669,392,491
30 June 2020
30 June 2019
Quantity
Quantity
378,685,916
32,207,937
13,145,696
248,639,734
26,627,792
12,636,917
Amount in Taka
30 June 2020
30 June 2019
99,377,976
1,031,507,041
1,130,885,017
(7,993,823)
(156,163,823)
119,998,485
818,843,227
938,841,712
(6,439,621)
(99,377,976)
966,727,371
833,024,115
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 169
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, 2019
Tabs
Caps
Amps & Suspensions
Stock as June 30, 2020
Tabs
Caps
Amps & Suspensions
Amount in Taka
30 June 2020
30 June 2019
35,395,067
563,093,775
477,437,615
1,075,926,457
(44,419,416)
1,031,507,041
57,553,706
384,286,478
412,398,110
854,238,294
(35,395,067)
818,843,227
163,711,619
598,201,400
(198,819,244)
199,163,699
348,834,398
(163,711,619)
563,093,775
384,286,478
Quantity
Value (Tk.)
36,149,741
6,497,142
1,473,298
57,990,530
16,240,513
25,146,933
99,377,976
Quantity
Value (Tk.)
59,388,662
11,548,926
1,416,442
89,677,865
42,908,358
23,577,599
156,163,822
Unit
pcs.
pcs.
pcs.
Unit
pcs.
pcs.
pcs.
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 170
23.3 Conversion cost
Amount in Taka
30 June 2020
30 June 2019
Salaries and allowances
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
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)
170,579,565
52,893,711
30,274,741
1,531,525
8,936,659
3,778,508
35,074,596
2,184,952
5,596,120
42,183,816
30,214,066
2,876,414
2,107,949
1,435,995
743,696
3,214,754
1,548,488
2,064,394
80,197,666
477,437,615
Salaries and allowances include company’s contribution to provident fund amounting to Tk. 2,048,504.
24. General and administration expenses
Salaries and allowances
Directors’ fees (Note 29)
Office rent
Overseas travelling expenses
Local travelling expenses
Entertainment
Vehicle repair, maintenance and running cost
Postage, telephone and internet
Printing and stationery
Repairs and maintenance
Office supplies
Software and hardware support expenses
Utilities
Canteen expenses
Local authority taxes
Medical expenses
Insurance premium
Statutory audit fees
Legal and professional expenses
Meeting and seminars
General expenses
Depreciation (Note 4.1)
52,704,065
288,000
11,454,000
2,460,534
1,143,053
807,635
3,425,351
1,824,772
703,574
1,271,822
1,181,300
3,251,729
2,101,088
3,078,880
463,682
120,357
181,869
375,000
144,000
1,777,441
771,413
2,996,619
92,526,184
151,223,341
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
79,655,332
412,398,110
50,241,444
270,000
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
2,748,550
1,294,203
111,076
420,402
350,000
177,993
1,630,000
704,587
3,403,571
88,443,477
Salaries and allowances include company’s contribution to provident fund amounting to Tk. 1,088,218.
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 171
25. Selling and distribution expenses
Amount in Taka
30 June 2020
30 June 2019
Salaries and allowances
Overseas travelling expenses
Local travelling expenses
Entertainment
Samples
Sales promotion expenses
Brand development
Product launch expenses
Sales force logistic
Welfare and corporate social responsibility
Field operation
Books and periodicals
Royalty expenses
Literature, brochure and printed materials
Distribution commission
Event, program and campaign
Sales meeting and conference
Advertisement
Vehicle repair, maintenance and running cost
Postage, telephone and internet
Printing and stationery
Medical expenses
Training expenses
Market survey and research
Registration and renewals
Insurance premium
Office rent
Bad debts
Utilities
General expenses
Depreciation (Note 4.1)
275,653,657
5,198,082
61,225,363
1,077,546
11,518,571
14,086,181
2,586,452
6,912,327
15,309,696
2,177,427
6,130,655
1,115,382
21,388,134
20,051,135
111,757,229
5,084,516
2,824,876
2,216,705
4,140,124
10,249,326
1,137,733
1,577,122
2,638,389
484,963
467,055
2,452,723
4,360,300
709,812
752,070
553,709
12,802,897
608,640,157
239,172,276
6,957,103
56,824,671
732,893
9,200,807
20,209,322
6,235,289
7,842,832
13,553,309
-
7,368,570
1,008,359
8,838,005
18,986,879
91,886,707
5,261,453
3,230,123
2,109,274
3,731,217
9,926,979
1,071,518
1,372,228
2,421,456
460,000
1,025,056
1,436,267
4,413,633
700,618
834,542
340,437
16,333,401
543,485,224
Salaries and allowances include company’s contribution to provident fund amounting to Tk. 5,069,183.
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
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 172
24,692
866,400
283,048
93,900
649,800
302,863
1,174,140
1,046,563
13,290,514
40,691,103
921,123
969,830
55,872,570
27,718,969
62,379,912
466,666
1,122,149
91,687,696
28. Capacity utilisation
Amps & Suspensions
Tablet
Capsule
29. Remuneration and fees to directors
Fees (Note 24)
30. Auditors’ remuneration
Statutory audit fees
P.F. audit fees
WPPF audit fees
31. Payments made in foreign currency
Installed
capacity
Unit
Actual
production
Unit
Actual
Utilisation
%
19,822,400
1,322,390,400
56,044,880
14,225,790
436,886,250
37,125,140
72%
33%
66%
Amount in Taka
30 June 2020
30 June 2019
288,000
288,000
270,000
270,000
375,000
40,000
35,000
450,000
350,000
35,000
35,000
420,000
Particulars
30 June 2020
30 June 2019
Foreign currency
(Equivalent USD)
Taka
Taka
Import of raw, chemicals and packing materials
Import of machinery and spare parts
4,229,488
155,633
359,506,535
13,228,851
256,786,558
33,111,263
372,735,386
289,897,821
32. Related party disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of related party
Relationship
Beximco Pharmaceuticals Limited
Immediate and
ultimate parent
Nature of
transactions
Toll income
Cost of services
Asset purchase
Dividend paid
Gratuity
Distribution
commission
Value of
transaction
Balance at year
end
19,417,187
51,318,664
3,430,731
20,026,948
12,455,838
1,730,683
4,191,977
-
-
-
111,757,229
13,420,717
Financial Statements-Nuvista Pharma Limited | Annual Report 2019-20 | 173
33. Capital expenditure commitment
There was no capital expenditure contracted but not incurred or provided for at 30 June 2020.
34. Contingent liabilities
34.1
There is a contingent liability of Tk. 75,195,722 in respect of disputed tax claim for earlier years (from AY:1996-1997 to AY: 1999-
2000). This matter has been referred to the High Court for a ruling and is still pending.
34.2
There is additional contingent liabilities in respect of outstanding letters of credit of Tk. 91,536,648 (June 2019: Tk. 23,451,928).
35. 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 1,142 (June 2019: 1,007).
36. Events after reporting date
36.1
In an effort to curb the spread of COVID-19 pandemic, government announced countrywide lockdown from 26th of March imposing
restrictions at varying levels on social and business activities with limited exceptions. Pharmaceuticals and other healthcare
services though remained outside the purview of the lockdown, it was indeed challenging to operate, particularly ensuring the
uninterrupted supply of essential medicines across the country during this disruptive period. Management however, took various
mitigating measures and continued its production and supply overcoming the difficulties while giving highest priority on the health
and safety of the employees. Directors are continually monitoring the local and global situation of the pandemic and taking up
appropriate measures to mitigate the risks associated therewith.
With people gradually adapting to the new environment, the economy began to recover slowly in the post- balance sheet period.
While there are uncertainties how the COVID-19 situations evolve and affects the business in the future, given the currently
prevailing situation, directors believe that there is no material adverse effect of the pandemic on the business’s continuity in the
foreseeable future.
36.2
The Board in its meeting dated 21 October 2020 recommended that 35% cash dividend i.e. Tk. 3.50 per share, totalling Tk.
41,125,560 be paid for the year 2019-2020. The dividend proposal is subject to shareholders’ approval at the forthcoming annual
general meeting.
Chairman
Managing Director
Director
Annual Report 2019-20 | Financial Statements-Nuvista Pharma Limited | 174
Beximco Pharma API Limited
Beximco Pharma API Limited
DIRECTORS’ REPORT 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,
2020 along with the report of the auditors thereon.
Beximco Pharma API Limited (BPAL) was incorporated in Bangladesh on December 12, 2017 as Private Limited Company under
the Companies Act 1994. The Company is a fully owned Subsidiary of Beximco Pharmaceuticals Limited (BPL).
OPERATION
The Company intends to set up a API manufacturing facility at the API Industrial Park, Gajaria, Munshigang. API Industrial Park
has been set up by the Government of Bangladesh to encourage and facilitate API manufacturing in Bangladesh to reduce
import dependency and ensure availability of patented APIs after graduation of Bangladesh from LDC to developing nation
status. Government has also promulgated National API Policy to ensure all necessary benefits and incentives that may be
required by the API manufacturers in the initial years. We have 2 (two) plots in the API Park which are now fully developed to
start construction. The company has identified number of APIs it intends to manufacture. It has also short listed few Indian/
Chines Technology partners evaluating their proposals. Once done, the agreements of construction shall be signed. It is expected
that by the middle of Q3 of 2021 facility construction shall be started and within December 2022 the API unit will be ready for
commercial production.
BOARD OF DIRECTORS
The Board of Director of BPAL consists of the following persons:
Nazmul Hassan MP, Chairman
S.M. Rabbur Reza, Managing Director,
Mohammad Ali Nawaz, Director
Afsar Uddin Ahmed, Director
Shah Monjurul Hoque, Independent Director
AUDITOR
The existing Auditors, M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C. R. Datta Road, Dhaka-1205
has carried out the audit for the year ended 30 June 2020.
M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C.R. Datta Road, Dhaka-1205, the Auditors of the
Company has expressed their willingness to continue in office for the year 2020-21. The board after due consideration of the
proposal made by the Audit Committee recommends the reappointment of M. J. Abedin & Co., Chartered Accountants as auditors
for the year 2020-21.
On behalf of the Board
Chairman
Annual Report 2019-20 | Directors’ Report to the Shareholders | 176
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 June 30,
2020, 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 give a true and fair view of the Financial Position of the Company as at June 30, 2020
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 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 on the company’s ability
Financial Statements-Beximco Pharma API Limited | Annual Report 2019-20 | 177
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.
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 and other applicable laws and regulations, we also report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit and made due verification thereof;
b) In our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination
of these books and;
c) The statement of Financial Position (Balance Sheet) and Statement of Profit or Loss and Other Comprehensive Income (Profit and Loss
Account) dealt with by the report are in agreement with the books.
Dhaka
Date: October 28, 2020
M.J. Abedin & Co.
Chartered Accountants
Annual Report 2019-20 | Financial Statements-Beximco Pharma API Limited | 178
•
Beximco Pharma API Limited
Statement of Financial Position
As at June 30, 2020
ASSETS
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
Short Term Advance
Creditors and Other Payables
Audit Fees Payable
Amount in Taka
Notes
June 30, 2020
June 30, 2019
4
5
20,000,000
20,000,000
94,685
94,685
20,000,000
20,000,000
35,525
35,525
20,094,685
20,035,525
18,376,999
20,000,000
(1,623,001)
1,717,686
544,360
1,153,326
20,000
18,862,199
20,000,000
(1,137,801)
1,173,326
-
1,133,326
40,000
TOTAL EQUITY AND LIABILITIES
20,094,685
20,035,525
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
Date: October 28, 2020
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Beximco Pharma API Limited | Annual Report 2019-20 | 179
Beximco Pharma API Limited
Statement of Profit or Loss and Other Comprehensive Income
For the year ended June 30, 2020
Revenue
Cost of Revenue
Gross Operating Profit/(Loss)
Amount in Taka
Notes
July 2019 -
June 2020
July 2018 -
June 2019
-
-
-
-
-
-
Administrative Expenses
6
(485,200)
(46,993)
Profit/(Loss) from Operations
Income Tax Expense
Net Profit/(Loss) after Tax
Other Comprehensive Income
(485,200)
-
(485,200)
(46,993)
-
(46,993)
-
-
Total Comprehensive Income/(Loss) for the Year
(485,200)
(46,993)
Earning Per Share (EPS)
(0.24)
(0.02)
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
Date: October 28, 2020
Annual Report 2019-20 | Financial Statements-Beximco Pharma API Limited | 180
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Beximco Pharma API Limited
Statement of Changes in Equity
For the year ended June 30, 2020
Particulars
Balance as on July 01,2019
Net Loss for the Year
Balance as on June 30, 2020
Number of Shares
Net Assets value per share
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 share
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
Date: October 28, 2020
Share Capital
Retained Earnings
Total
20,000,000
(1,137,801)
18,862,199
Amount in Taka
-
(485,200)
(485,200)
20,000,000
(1,623,001)
18,376,999
2,000,000
9.19
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
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Financial Statements-Beximco Pharma API Limited | Annual Report 2019-20 | 181
Beximco Pharma API Limited
Statement of Cash Flows
For the year ended June 30, 2020
Cash Flows from Operating Activities:
Cash receipts from customers and others
Payments for expenses & others
Net Cash Genarated from/(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:
Net Cash Genarated from Financing Activities
Increase/(Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
Date: October 28, 2020
July 2019 -
June 2020
544,360
(485,200)
59,160
-
-
-
59,160
35,525
94,685
Amount in Taka
July 2018 -
June 2019
-
(13,840)
(13,840)
(20,000,000)
(20,000,000)
-
(20,013,840)
20,049,365
35,525
Mohammad Ali Nawaz
Director
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Annual Report 2019-20 | Financial Statements-Beximco Pharma API Limited | 182
Beximco Pharma API Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2020
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) Statement of Financial Position as at June 30, 2020;
b) Statement of Profit or Loss and other Comprehensive Income for the year ended June 30, 2020;
c) Statement of Changes in Shareholders’ Equity for the year ended June 30, 2020;
d) Statement of Cash Flows for the year ended June 30, 2020 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, 2019 to June 30, 2020.
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.
Financial Statements-Beximco Pharma API Limited | Annual Report 2019-20 | 183
Amount in Taka
June 30, 2020
June 30, 2019
4. Cash and Cash Equivalents
This represents Cash at Bank with Current Account (IFIC Bank Limited, Dhanmondi Branch)
94,685
94,685
35,525
35,525
5.
Issued Share Capital
A. Authorized:
100,000,000 Ordinary Shares of taka 10 each
B. Issued and Paid-up:
2,000,000 Ordinary Shares of taka 10 each paid in cash
C. Composition of Shareholding of Ordinary Shares
Beximco Pharmaceuticals Limited
S.M. Rabbur Reza
6. Administrative Expenses
Legal Expenses
Audit Fees
Bank Charges
Entertainment
Other Expenses
S.M. Rabbur Reza
Managing Director
Dhaka
Date: October 28, 2020
Annual Report 2019-20 | Financial Statements-Beximco Pharma API Limited | 184
1,000,000,000
1,000,000,000
1,000,000,000
1,000,000,000
20,000,000
20,000,000
20,000,000
20,000,000
No. of Shares
% of Shares
Capital
1,999,990
10
2,000,000
99.9995
0.0005
100
July 2019 -
July 2018 -
June 2020
June 2019
-
20,000
840
328,460
135,900
485,200
13,153
20,000
13,840
-
-
46,993
Mohammad Ali Nawaz
Director
Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
NOTICE OF THE FORTY-FOURTH ANNUAL GENERAL MEETING
Notice is hereby given that the 44th Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held virtually on
Saturday, the 19th December, 2020 at 10.30 a.m.to transact the following business:
AGENDA
1.
2.
3.
4.
5.
6.
To receive, consider and adopt the Audited Financial Statements of the Company for the year ended on 30th June, 2020 together
with reports of the Auditors and the Directors thereon.
To declare 15% cash dividend and 10% stock dividend.
To elect Directors.
To approve the appointment of Independent Director.
To appoint Auditors for the year 2020-21 and to fix their remuneration.
To appoint Corporate Governance Compliance Auditor for the year 2020-21 and to fix remuneration.
By order of the Board,
Dated: November 18, 2020
Executive Director & Company Secretary
(MOHAMMAD ASAD ULLAH, FCS)
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, 2020, 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) Annual Report for the year 2019-20 will be sent through e-mail address of the Shareholders and will be available in the Website of the
Company at: www.beximcopharma.com .
(4) The Shareholders will join the Virtual AGM through the link https://bxpharma.bdvirtualagm.com . The Shareholders will be able to
submit their questions/comments and vote electronically 1 (one) hour before commencement of the AGM and also during the AGM.
For logging in to the system, the Shareholders need to put their 16-digit Beneficial Owner (BO) ID/Folio Number and other credential
as proof by visiting the said link.
(5) We encourage the Shareholders to login into the system prior to the meeting. Please allow ample time to login and establish your
connectivity. For any IT related guidance, Shareholders may contact vide email : monir@beximco.net or mazibur@beximco.net .
Notice of Annual General Meeting | Annual Report 2019-20 | 185
Frequently Asked Questions (FAQs) on Virtual Shareholders’ Meeting
1. Why is this Annual General Meeting (AGM) will only be held under virtual platform?
In light of the prevailing COVID-19 situation in Bangladesh and considering the health and safety of all shareholders, members
and others, a listed company can arrange virtual shareholders meeting which may be conducted via live webcast by using
digital platform to avoid large gathering at one place and also to maintain social distancing. In this connection, Bangladesh
Securities and Exchange Commission has issued a directive, vide order no. SEC/SRMIC/04-231/932 dated 24 March, 2020.
Under this circumstance, Beximco Pharmaceuticals Limited has planned to arrange its 44th AGM virtually by using digital
platform.
2. Who are entitled to participate in the AGM?
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, 2020, will be entitled to attend at the Annual General Meeting and to receive the dividend.
3. How can I participate in the AGM?
The Shareholders will join the Virtual AGM through the link- https://bxpharma.bdvirtualagm.com/
For logging in to the system, the Shareholders need to put their 16-digit Beneficial Owner (BO) ID/Folio Number and other
credential as proof by visiting the said link. We encourage the Shareholders to login into the system prior to the meeting.
Please allow ample time to login and establish your connectivity.
4. How can I submit questions/comments prior to and during the meeting?
The Shareholders will be able to submit their questions/comments electronically one (1) hour before commencement of the
AGM and also during the AGM by visiting the link-https://bxpharma.bdvirtualagm.com/
5. How the Company will address our questions/comments?
During the live Q&A session on the AGM day, the Board and the Management will try to answer the relevant questions, which
will be submitted through the system and email prior to or during the meeting. However, Beximco Pharma reserves the right
to edit and reject questions if it deems impudent or otherwise inappropriate.
6. How can I vote my shares in the AGM?
You can vote your shares electronically one (1) hour prior to commencement of the AGM and during the AGM by visiting the
link https://bxpharma.bdvirtualagm.com/
7. How can I submit Proxy Form?
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.
8. What If I have technical difficulties or trouble accessing the virtual meeting?
For any IT related guidance, Shareholders may contact vide email: monir@beximco.net or mazibur@beximco.net
Annual Report 2019-20 | Frequently Asked Questions (FAQs) on Virtual Shareholders’ Meeting | 186
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 44th Annual General Meeting of the Company to be held on Saturday, the 19th December, 2020 at 10.30 a.m. under virtual
platform and at any adjournment thereof.
As witness my hand this……………………………..day of December, 2020.
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
Proxy Form | Annual Report 2019-20 | 187
www.beximcopharma.com
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