ANNUAL REPORT
2020-21
First Time in
The WORLD*
BEXIMCO PHARMACEUTICALS LIMITED
BEXIMCO PHARMACEUTICALS LIMITED
*During the pandemic, Beximco Pharma became the first company in the world to launch generic
*During the pandemic, Beximco Pharma became the first company in the world to launch generic
*During the pandemic, Beximco Pharma became the first company in the world to launch generic
*During the pandemic, Beximco Pharma became the first company in the world to launch generic
*During the pandemic, Beximco Pharma became the first company in the world to launch generic
*During the pandemic, Beximco Pharma became the first company in the world to launch generic
*During the pandemic, Beximco Pharma became the first company in the world to launch generic
versions of the breakthrough antiviral drugs Remdesivir and Molnupiravir for COVID-19 which were
originally developed by Gilead Sciences and Merck/Ridgeback Biotherapeutics respectively.
ANNUAL REPORT
2020-21
BEXIMCO PHARMACEUTICALS LIMITED
Date of Release: November 30, 2021
“Beximco Pharma aspires to become a globally admired
generic pharmaceutical company, committed to
enhancing human health and life.”
Contents
Our Essence
About the Company
Corporate Information
Our Journey
Our Subsidiaries
Our Products
Our Market
Our Manufacturing Capabilities
Our Global Accreditations
Research and Development
Board and Management
Financial Highlights
Operational Highlights
Accolades and Awards
Our People
Environment, Health and Safety
Our CSR Initiatives
Corporate Events
Media Spotlights
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
Dividend Policy Statement
Value Added Statement
Consolidated Financial Statements -
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101
Beximco Pharmaceuticals Ltd. and Its Subsidiaries
103
Financial Statements- Beximco Pharmaceuticals Limited
124
Financial Statements- Nuvista Pharma Limited
157
Financial Statements- Beximco Pharma API Limited
Notice of Annual General Meeting
Proxy Form
184
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195
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We take it minute by minute, drop by drop, molecule by molecule. The miracle of a pyramid
is in the perfection of every stone. The miracle of life is in the health of every cell. At
Beximco Pharma, we are tireless at achieving such perfection in every molecule of our
medicines. That’s our little contribution to life.
Here’s to perfection. Here’s to life.
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.
Annual Report 2020-21 | Our Essence | 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 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 manufactures more than 300 products in different forms and
strengths covering almost all therapeutic categories. 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 currently has
more than 5,000 permanent full time employees including professionals
like pharmacists, doctors, engineers, chemists, microbiologists,
accountants, lawyers, information technology specialists, and graduates
from other disciplines.
Beximco Pharma has received recognitions from different national and
global organizations for its excellence, innovation, and performance. It
is the winner of the highly prestigious SCRIP Award 2017 (“Best Pharma
Company in an Emerging Market”), Global Generics & Biosimilar Awards
2019 (“Company of the Year, Asia Pacific”), CPhI Pharma Awards 2020
(“Innovation in Response to COVID-19”). In 2021, Beximco Pharma was
recognized as “The Company of the Year, Asia Pacific” at the Global
Generics and Biosimilar Awards 2021.
The Company is listed with Dhaka and Chittagong stock exchanges
of Bangladesh and the Alternative Investment Market (AIM) of London
Stock Exchange.
Beximco Pharma holds 85.22% stake in Nuvista Pharma Limited
(formerly Organon Bangladesh), a leading non-listed Bangladeshi
pharmaceutical company specializing in hormone and steroid drugs.
In 2021, the Company acquired a majority stake (54.6%) in Sanofi
Bangladesh Limited, a subsidiary company of global pharmaceutical
giant Sanofi Group.
Annual Report 2020-21 | About the Company | 7
At Beximco Pharma, it is not just about how many products we sell, but rather,
it is about the lives we save
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
Chittagong Stock Exchange
AIM of London Stock Exchange
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
Public Relations
IMPACT PR
Apartment No. A-1, House No. 17
Road No. 4, Gulshan-1
Dhaka-1212, Bangladesh
Legal Advisor
Huq & Co.
47/1 Purana Paltan
Dhaka-1000, Bangladesh
Hoque & Associates
House No. 11, Suite No. 201
Road No. 108, Gulshan-2
Dhaka-1212, Bangladesh
Auditors
M. J. Abedin & Co.
Chartered Accountants
National Plaza (3rd Floor),
109, Bir Uttam C. R. Datta Road
Dhaka- 1205, Bangladesh
Sanofi Bangladesh Limited
6/2/A Segun Bagicha, Dhaka-1000
Factory
Tongi Station Road, Gazipur
Subsidiaries
Nuvista Pharma Limited
Mascot Plaza, 8th Floor
107/A, Sonargaon Janapath; Sector- 7
Uttara C.A, Dhaka - 1230, Bangladesh
Phone: +880-2-58952811
Factory
48, Tongi Industrial Area, Block-C, Tongi
Gazipur.
Associates
BioCare Manufacturing Sdn Bhd
Seri Iskandar Pharmaceutical Park
32600 Bota, Perak, Malaysia
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.
Agrani Bank Limited
Beximco Pharma API Limited
17 Dhanmondi, Road No. 2
Dhaka-1205, Bangladesh
Annual Report 2020-21 | Corporate Information | 9
Our Journey
1976
1980
1983
1985
1993
2003
2005
2006
2008
10 | Our Journey | Annual Report 2020-21
Company incorporated
Started manufacturing products of Bayer AG, Germany and Upjohn Inc.,
USA, under license agreements
Launched own formulation brands
Listed on Dhaka Stock Exchange
Received GMP accreditation from
AGES, Austria (for European Union)
Commenced first time export to Europe
• GMP accreditation from Taiwan Food & Drug Administration
(TFDA) and Health Canada
• Commenced export to Australia
• GMP approval from the U.S. FDA as the first Bangladeshi company
• Launched generic version of revolutionary
hepatitis C drugs Sovaldi® and Harvoni®
• Entered the Gulf pharma market (Kuwait)
2015-16
Commenced formulation product export to Russia
• First overseas collaboration with BioCare Manufacturing Sdn Bhd, Malaysia
• Commenced export to the USA
2016-17
Introduced anti-retroviral (ARV) drugs first time in Bangladesh
• Won the Scrip Award in the category of “Best Company
• Oral solid dosage facility received WHO prequalification
• Acquired 85.22% stake in Nuvista Pharma Limited
in an Emerging Market”
Got listed on the Alternative Investment Market (AIM) of
London Stock Exchange (LSE) through issuance of GDRs
Won the Scrip Award in the category of ‘‘Community Partnership of the Year’’
Launched CFC free HFA inhalers first time in Bangladesh
• GMP accreditation from TGA, Australia
• Gulf Central Committee for Drug Registration (GCC), as the first
Bangladeshi Company
• GMP approval from German Regulatory Authority and
Malta Medicines Authority (European Union)
• Global Generics & Biosimilars Awards 2019 as
“The Company of the Year, Asia-Pacific”
• Launched the world's first generic remdesivir
• Became exclusive distributor of Serum Institute of India for
AstraZeneca/Oxford's Covishield vaccine in Bangladesh
• Acquired Sanofi Bangladesh Limited (54.6% stake)
• CPhI Pharma Award 2020 for “Innovation in response to COVID-19”
• “The Company of the Year, Asia Pacific” at
the Global Generics and Biosimilar Awards 2021
• Launched the world's first generic molnupiravir
2011
2013
2014
2017-18
2018-19
2019-20
2020-21
1976
1980
1983
1985
1993
2003
2005
2006
2008
Company incorporated
Started manufacturing products of Bayer AG, Germany and Upjohn Inc.,
USA, under license agreements
Launched own formulation brands
Listed on Dhaka Stock Exchange
Received GMP accreditation from
AGES, Austria (for European Union)
Commenced first time export to Europe
• GMP accreditation from Taiwan Food & Drug Administration
(TFDA) and Health Canada
• Commenced export to Australia
2011
2013
2014
• GMP approval from the U.S. FDA as the first Bangladeshi company
• Launched generic version of revolutionary
hepatitis C drugs Sovaldi® and Harvoni®
• Entered the Gulf pharma market (Kuwait)
2015-16
Commenced formulation product export to Russia
• Commenced export to the USA
• First overseas collaboration with BioCare Manufacturing Sdn Bhd, Malaysia
2016-17
Introduced anti-retroviral (ARV) drugs first time in Bangladesh
• Won the Scrip Award in the category of “Best Company
in an Emerging Market”
• Oral solid dosage facility received WHO prequalification
• Acquired 85.22% stake in Nuvista Pharma Limited
Got listed on the Alternative Investment Market (AIM) of
London Stock Exchange (LSE) through issuance of GDRs
Won the Scrip Award in the category of ‘‘Community Partnership of the Year’’
• GMP accreditation from TGA, Australia
• Gulf Central Committee for Drug Registration (GCC), as the first
Bangladeshi Company
• GMP approval from German Regulatory Authority and
Malta Medicines Authority (European Union)
• Global Generics & Biosimilars Awards 2019 as
“The Company of the Year, Asia-Pacific”
• Launched the world's first generic remdesivir
• Became exclusive distributor of Serum Institute of India for
AstraZeneca/Oxford's Covishield vaccine in Bangladesh
• Acquired Sanofi Bangladesh Limited (54.6% stake)
• CPhI Pharma Award 2020 for “Innovation in response to COVID-19”
• “The Company of the Year, Asia Pacific” at
the Global Generics and Biosimilar Awards 2021
• Launched the world's first generic molnupiravir
2017-18
2018-19
2019-20
2020-21
Annual Report 2020-21 | Our Journey | 11
Our Subsidiaries
Nuvista Pharma Limited
Nuvista Pharma Limited (NPL) was originally formed as Organon (Pakistan) Limited in 1963 as a subsidiary of Organon Holding BV, the
Netherlands. The Company has been operating in Bangladesh since 1964. In the post-independent Bangladesh, it was incorporated
as Organon (Bangladesh) Limited. Following the divestment of Oraganon’s equity to the local management in 2006, the Company was
renamed as Nuvista Pharma Limited. Through acquisition of 85.22% stake by Beximco Pharma in 2018, Nuvista Pharma became the
subsidiary of the Company.
Nuvista Pharma currently produces a total of 84 products covering several therapeutic categories with leading position in hormones,
steroids and women’s health segment. The manufacturing facilities of Nuvista Pharma is situated at Tongi Industrial Area Gazipur.
NPL’s manufacturing plant has facilities for injection, tablet and capsule and specialty products like hormone and steroid. The facilities
are accumulated in a multistoried building covering 126,408 sft floor area.
NPL employs over 1100 people of diverged skills, academic and professional backgrounds.
Annual Report 2020-21 | Our Subsidiaries | 13
Sanofi Bangladesh Limited
Sanofi Bangladesh Limited
(SBL) was part of global
biopharmaceutical company Sanofi S.A. before being taken over by
Beximco Pharma in 2021. SBL started its operation in Bangladesh
as part of the British chemical company, May & Baker. Following
a series of mergers, it became known as Sanofi-Aventis in 2004,
before being renamed in 2013 as Sanofi Bangladesh Limited.
Beximco Pharmaceuticals Limited acquired 54.6% stake of SBL
held by Sanofi Group represented through May & Baker Limited
and Fisons Limited. The remaining 45.4% is held by Bangladesh
Government through Bangaldesh Chemical Industries Corporation
(20%) and Ministry of Industries (25.4%).
Sanofi Bangladesh’s state-of-the-art manufacturing facilities,
including a PIC/S certifiable manufacturing facility for the leading
antibiotic, cephalosporin, are spread over c25 acres of land, located
at Tongi, Gazipur. The plant operated by SBL has manufacturing
capabilities across several drug technologies, including tablets,
capsules, topical, liquids, powder for suspension as well as sterile
liquids and powders. The Corporate Headquarters is located at
Segun Bagicha, Dhaka in a six storied building over a 26 katha
land.
Sanofi Bangladesh has over 800 employees and produces
approximately 100 branded generic products. SBL has a strong
presence in cardiology, diabetes, oncology, dermatology and
CNS. SBL also imports certain global brands of Sanofi including
vaccines, insulins and chemotherapy drugs for sale in the
Bangladesh market.
Beximco Pharma took over the control of the company effective
from 01 October 2021.
14 | Our Subsidiaries | Annual Report 2020-21
Annual Report 2020-21 | Our Subsidiaries | 15
First Bangladeshi
pharma company
to export medicine
to U.S.A
Our growing presence in overseas markets, combined with our reputation as a world
class manufacturer, drives us to aspire to even greater heights.
Our Products
Beximco Pharma currently produces more than 300 generics available in well over 500 presentations. Beximco Pharma’s portfolio
encompasses wide range of 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 ophthalmic, lyophilized injectable, oral thin films,
suppositories etc. creating strong differentiation for the Company. Many of its brands remain consistent leaders in their respective
therapeutic categories. Napa, Napa Extra, Neofloxin, Atova, Azmasol, Arlin, Bexitrol F, D-Rise, Bizoran, Amdocal, Tofen, Tyclav etc. are
household names with strong brand equity. The Company is continually focused on expanding and diversifying its product portfolio in
order to ensure that people have access to newer, better treatment options at affordable cost. The expanding portfolio, including high
value, differentiated, and difficult to copy products, will continue to remain as a driver of its growth.
Beximco Pharma also produces a number of active pharmaceutical ingredients (APIs) for its captive consumption as well as sale to
other pharmaceutical manufacturers. The Company is working on strengthening the API portfolio and its current 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
Joint Supplement
Muscle Relaxant
NSAIDs
Oral Anti-Diabetic
Suppository
Paracetamol 125 mg, 250 mg And 500 mg
Injection
Paracetamol 10 mg / ml
NAPA ONE
NAPA EXTRA
Tablet
Tablet
Paracetamol 1000 mg
Paracetamol 500 mg + Caffeine 65 mg
NAPA EXTEND
Tablet
Paracetamol 665 mg Extended Release
NAPADOL
NAPA RAPID
Tablet
Tablet
Paracetamol 325 mg + Tramadol 37.5 mg
Paracetamol 500 mg (with Actizorb technology)
JOINTEC MAX
Tablet
Glucosamine 750 mg + Diacerein 50 mg
RELENTUS
DINOVO
VOLIGEL
XIDOLAC
ZOLFIN
GLIPITA
GLIPITA M
TRANETA
TRANETA M
Tablet
Tablet
Cream
Tablet
Tizanidine 2 mg
Naproxen 375 mg + Esomeprazole 20 mg, Naproxen 500 mg +
Esomeprazole 20 mg
Diclofenac Sodium 50 mg
Ketorolac Tromethamine 10 mg
Injection
Ketorolac Tromethamine 30 mg / ml
Tablet
Tablet
Tablet
Tablet
Tablet
Aceclofenac 100 mg
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, Linagliptin 2.5
mg + Metformin Hydrochloride 850 mg, Linagliptin 2.5 mg +
Metformin Hydrochloride 1000 mg
JARDIAN
Tablet
Empagliflozin 10 mg, Empagliflozin 25 mg
Annual Report 2020-21 | Our Products | 17
Oral Anti-Diabetic
JARDIMET
VIBOSE
INFORMET
Tablet
Tablet
Tablet
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 Hydrochloride 1000 mg
Insulin
GENSULIN
Injection
Human Insulin 100 IU / ml Injection
SEMGLEE
Prefield Pen
Insulin Glargine 100IU/ML
REGLUTIDE
Injection
Semaglutide inn 1.34 mg/ml
Anti-Histamines
ATRIZIN
AXODIN
DUVENT
BILLI
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
Rupatadine 10 mg
Rupatadine 5 mg / 5 ml
Bilastine 20 mg
MELTAB
Bilastine 10 mg
Oral Solution Bilastine
Cough & Cold
DEXTRIM
TUSPEL
MUCOSOL
Anti-Hypertensives
BIZORAN
Syrup
Syrup
Syrup
Drops
Tablet
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
Amlodipine 5 mg + Olmesartan Medoxomil 40 mg, Amlodipine 5 mg +
Olmesartan Medoxomil 20 mg
OLMESAN
Tablet
Olmesartan Medoxomil 10 mg, Olmesartan Medoxomil 20 mg, Olm-
esartan Medoxomil 40 mg
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
Lipid Lowering
ATOVA
ROSUTIN
Anti-Infectives
ARLIN
Tablet
Tablet
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
Atorvastatin 10 mg, Atovastatin 20 mg, Atovastatin 40 mg
Rosuvastatin 5 mg, Rosuvastatin 10 mg, Rosuvastatin 20 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
18 | Our Products | Annual Report 2020-21
Anti-Infectives
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
BEMSIVIR
EMORIVIR
VIRAFLU
IVERA
Tablet
Syrup
Tablet
Injection
Injection
Capsule
Tablet
Tablet
Metronidazole 200 mg, Metronidazole 400 mg, Metronidazole 800 mg
Metronidazole 200 mg / 5 ml
Ciprofloxacin 750 mg, Ciprofloxacin 500 mg, Ciprofloxacin 250 mg
Ciprofloxacin 250 mg / 5 ml
Remdisivir Inn 100 mg
Monlupiravir 200 mg
Favipiravir 200 mg
Ivarmectine 6 mg, Ivarmectine 12mg,
Antacids
DIGECID PLUS
Suspension
Magaldrate 480 mg + Simethicone 20 mg / 5 ml
VISCOCID
Suspension
Sodium Alginate 500 mg + Potassium Bicarbonate 100 mg / 5 ml
Anti-Ulcerants
ACIFIX
REMMO
OPTON
Tablet
Tablet
Tablet
Capsule
Injection
Rabeprazole 20 mg
Esomeprazole 20 mg, Esomeprazole 40 mg
Esomeprazole 20 mg, Esomeprazole 40 mg
Esomeprazole 20 mg, Esomeprazole 40 mg
Esomeprazole 40 mg
PANTOBEX
Tablet
Pantoprazole 20 mg, Pantoprazole 40 mg
Injection
Pantoprazole 40 mg
PROCEPTIN
Capsule
Omeprazole 20 mg, Omeprazole 40 mg
Injection
Omeprazole 40 mg
YAMADIN
Tablet
Famotidine 20 mg, Famotidine 40 mg
FAMOMAX
Suspension
Famotidine
ZYMET Pro
Capsule
Pancreatin 325 mg
DEFLUX
Tablet
Domperidone 10 mg, Domperidone 10 mg Meltab
Enzymes
Gastroprokinetics
Antispasmodic
ROSTIL
CNS
FRENXIT
Suspension
Domperidone 5 mg / 5 ml
Drops
Capsule
Tablet
Tablet
Domperidone 5 mg / ml
Mebeverine Hydrochloride 200 mg
Mebeverine Hydrochloride 135 mg
Flupentixol 0.5 mg + Melitracen 10 mg
NERVALIN
Capsule
Pregabalin 25 mg, Pregabalin 50 mg, Pregabalin 75 mg
Hormones
EMIJOY
FEMZOLE
TAMONA
Tablet
Tablet
Tablet
Chlordiazepoxide 5 mg + Amitriptyline Hcl 12.5 mg
Letrozole 2.5 mg
Tamoxifen Citrate 10 mg,Tamoxifen Citrate 20 mg
Annual Report 2020-21 | Our Products | 19
Laxatives
FRELAX
Suspension
Liquid Paraffin 1.25 ml + Magnesium Hydrochloride 300 mg / 5 ml
Anti-Fungals
SERELOSE
OMASTIN
Solution
Capsule
Lactulose 3.35 gm / 5 ml
Fluconazole 150 mg, Fluconazole 200 mg, Fluconazole 50 mg
TERBEX
Respiratory
AZMASOL
Suspension
Fluconazole 50 mg / 5 ml
Injection
Fluconazole 2 mg / ml Infusion
Tablet
Cream
MDI
Terbinafine 250 mg
Terbinafine HCl 1%
Salbutamol 100 mcg / Puff
Respirator
Solution
Salbutamol 2.5 mg / 3 ml Ampoule, Salbutamol 5 mg / ml in amber
glass bottle
BEXITROL-F
MDI
DPI
MAXHALER
Salmetarol 25 mcg + Fluticasone Propionate 125 mcg,
Salmetarol 25 mcg + Fluticasone Propionate 250 mcg,
Salmeterol 25 mcg + Fluticasone Propinate 50 mcg
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
TRIBREZ
DEXAQUA
DEXORIDE
SALORIDE
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
Inhaler
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
Formoterol Fumarate BP5.5MCG+Glycopyrro
Dextrose 10% W/V, Dextrose 5% W/V
NaCl 0.9% W/V & Dextrose 5% W/V
Sodium Chloride 0.09% W/V
IV Fluids
Ophthalmic
ODYCIN
Eye Drops
Moxifloxacin 0.5%
ODYCIN D
Eye Drops
Moxifloxacin Hcl
20 | Our Products | Annual Report 2020-21
Ophthalmic
TEARON
Eye Drops
Polyethylene Glycol 400 0.4% + Propylene Glycol 0.3%
TEARON FRESH
Eye Drops
Caboxymethyl Cellulose Sodium 1%
Urogenital
VIVIS
URAL-K
MIRASOL
UROFLO
Capsule
Solution
Tablet
Capsule
Antioxidants & Minerals
Potassium Citrate 1500 mg + Citric Acid Monohydrate 250 mg / 5 ml
Solution
Mirabegron INN 25 mg,Mirabegron INN 50 mg
Tamsulosin Hydrochloride 0.4 mg
UROFLO PLUS
Capsule
Tamsulosin Hydrochloride 0.4 mg + Dutasteride 0.5 mg
Biologies
OGIVRI
FULPHILA
Lyophilized
Powder
Prefield
Syringe
Trastuzumeb INN 440mg/Vial
Pegfilgrastim
Vitamins &
Minerals
BEXTRAM GOLD Tablet
High Potency 32 Multivitamin-Mineral
BEXTRAM
SILVER
D-RISE
HEMOFIX FZ
NEUROCARE
CALORATE
BECORAL D
BECORAL DX
Tablet
High Potency 30 Multivitamin-Mineral
Capsule
Cholecalciferol 20000 IU, Cholecalciferol 40000 IU
Tablet
Tablet
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
Coral Calcium
Coral Calcium
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
• PENICILLINS
• DICLOFENAC
Annual Report 2020-21 | Our Products | 21
Key Products Launched
We have expanded our product portfolio with 22 generics available in 32 different presentations. Triovix
Junior Tablet; Symbion 6/100 Maxhaler; Zymet Pro Capsule; Remmo, a buffered esomeprazole MUPS
formulation; Fulphila, first Biosimilar Pegfilgrastim from Mylan are few among the new products launched
during the year. Two more products have been launched post reporting period.
22 | Our Products | Annual Report 2020-21
Our Market
We are a leading player in Bangladesh with over 9% share of country’s Taka 276 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.
North America
CIS Central Asia
Europe
Middle East
Asia
Africa
Central America
& Caribbean Islands
South America
Export Destinations
South Asia
Afghanistan
Bhutan
Cambodia
Maldives
Myanmar
Nepal
Pakistan
Sri Lanka
Vietnam
Azerbaijan
Hong Kong
Indonesia
Laos
Malaysia
Mongolia
Philippines
Singapore
Taiwan
Thailand
Uzbekistan
Middle East
Iraq
Jordan
Lebanon
Oman
UAE
Yemen
Australia
New Zealand
North America
Latin &
Africa
Botswana
Burundi
DR Congo
Ethiopia
Ghana
Guinea
Ivory Coast
Kenya
Lesotho
Libya
Mali
Mauritius
Mozambique
3.9%
Export (% )
Namibia
Region
Africa 17.0%
Nigeria
Australia
Europe 1.1%
North America
Somalia
South Asia
12.1%
Asia Pacific + CIS
8.4%
South Africa
Latin and Central America
Middle East 4.8%
Tanzania
36.5%
Europe
Austria
Germany
Kosovo
Netherlands
Romania
Canada
USA
Australasia
Australia
Fiji
Kiribati
Tonga
Europe
1.1%
Australia
Africa
3.9%
Asia
Rest of the World
North America
16.1%
17%
Central America
Belize
Bolivia
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
Guatemala
Guyana
Honduras
Jamaica
Mexico
Netherlands Antilles
Nicaragua
Panama
Peru
Suriname
Uganda
Zambia
Zimbabwe
20.5%
21%
Trinidad & Tobago
Venezuela
36.5%
Region Wise Export (2020-21)
Annual Report 2020-21 | Our Market | 23
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 selfcontained 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 over 2,42,000
sq ft warehouse area 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.
Annual Report 2020-21 | Our Manufacturing Capabilities | 25
Current Production Capacity:
Liquids, Cream & Ointment, Shampoo & Lotion
Semi Solid and Liquid (SSL)
•
and Suppository
• Capacity: Liquids-41.25 bottles, Cream &
Ointment-3.2 million Tubes, Suppository-10.20
million pieces, and Shampoo & Lotion- 0.25
million bottles
26 | Our Manufacturing Capabilities | Annual Report 2020-21
Oral Solid Dosage (OSD)
• Tablets, Capsules, Powder for Suspension, Sachets
and Oral Soluble Films
• Capacity: Tablets-5492 million, Capsules-232
million, Powder for Suspension-1.86 million
bottles, Sachets- 4.08 million and Oral Soluble
Films- 0.52 million units
Sterile, Nasal Spray & Respiratory
Solutions
•
Intravenous fluid, Amino Acid, Insulin Nasal Spray and
Respiratory Solutions (Non-Steroids), Nasal Spray and
Respiratory Solutions (Steroids), Lyophilized Injection,
Prefilled Syringe and Ophthalmic products
• Capacity: Intravenous fluids-9.84 million bottles, Amino
Acid -0.96 million bottles, Insulin -3.00 million vials
and cartridges, Nasal Spray and Respiratory Solutions
(Non-Steroids)- 6.31 million ampules, Nasal Spray
and Respiratory Solutions (Steroids)- 2.85 million
HDPE containers, Lyophilized Injection -2.11million vials,
Prefilled Syringe -1.92 million units and Ophthalmic –
4.56 million LDPE containers
Inhalers
Metered Dose Inhalers (MDI), Dry Powder Inhaler(DPI)/
Multi Dose Dry Powder Inhaler (mDPI)
• Capacity: MDI- 18.10 million Cans, DPI- 108.8
million Capsules
Penicillin
• Capsules and Dry Syrups
• Capacity: Capsules – 42.24 million and Dry Syrups-
3.06 million bottles
Active Pharmaceutical Ingredients (APIs)
• Multiple APIs
• Capacity: 22MT
Annual Report 2020-21 | Our Manufacturing Capabilities | 27
Unit 3
Our new state-of-the art manufacturing facility (Unit-3) for oral solids, semi-solids and liquid products is almost complete. This
multistoried facility having floor space of 49,854 m2 and production area of 26,468 m2 is equipped with latest machineries
mostly from European sources. The facility is capable of producing of 9 billion tablet/capsules and 210 million units liquid and
semi-liquid Products. Two solid lines and one liquid line are now manufacturing validation batches and is expected to go
for commercial production by January 2022. The facilities will be fully operational in phases after validation of and product
transfer to other lines.
28 | Unit 3 | Annual Report 2020-21
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)
• Gulf Central Committee (GCC)
• World Health Organization (WHO)
• ANVISA (Brazil)
30 | Our Global Accreditations | Annual Report 2020-21
Research and Development
Our research and development activities are closely focused on market needs and driven by technological progress. As an emerging
global generic drug company, our key strength lies in our ability to excel in developing technologically complex and differentiated
products. Our state-of-the-art R&D lab facilitates the development of innovative and difficult products with a focus on creating unique
market opportunities. We have given top priority in building and strengthening our capabilities to excel in formulating technologically
complex products such as multi-layer tablet, sustained release formulation, dispersible tablet, metered dose inhalers, dry powder
inhalers, prefilled syringes, lyophilized injectables, sterile ophthalmics, oral thin films etc. We are also pursuing research collaboration
with universities and biotech companies both at home and abroad for strengthening our capabilities in selected areas.
Annual Report 2020-21 | Research and Development | 31
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
Iqbal Ahmed
A B Siddiqur Rahman
Quamrun Naher Ahmed
Reem H. Shamsuddoha
Prof. Mamtaz Uddin Ahmed
Dr. Md. Ibraheem Hosein Khan
Chairman
Vice Chairman
Managing Director
Director
Director
Director
Director
Director
Independent Director
Independent Director
Mohammad Asad Ullah, FCS
Company Secretary
Audit Committee
Prof. Mamtaz Uddin Ahmed
Osman Kaiser Chowdhury
Reem H. Shamsuddoha
Mohammad Asad Ullah, FCS
Chairman
Member
Member
Secretary
Nomination and Remuneration Committee
Dr. Md. Ibraheem Hosein Khan
Iqbal Ahmed
Osman Kaiser Chowdhury
Mohammad Asad Ullah, FCS
Chairman
Member
Member
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
Annual Report 2020-21 | Board and Management | 33
Directors’ Profile
Ahmed Sohail Fasihur Rahman
Chairman
Mr. Ahmed Sohail Fasihur Rahman is the Chairman and founder of Beximco Group. He is a distinguished business personality of
the country and has received many awards and accolades for his phenomenal contribution to the country’s journey of 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 well-reputed organizations, which includes 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 Trustees of North South University Foundation, the first private university in Bangladesh.
34 | Board and Management | Annual Report 2020-21
Salman Fazlur Rahman MP
Vice Chairman
Mr. Salman Fazlur Rahman MP, is a distinguished industrialist, philanthropist and politician of Bangladesh. Mr Rahman is an elected
Member of Parliament and currently serving as the Prime Minister’s Private Industry and Investment Adviser, with the rank and status
of a cabinet minister.
One of the most renowned and successful businessmen in the country, Mr. Rahman is widely recognized for his contribution to the
development of the private sector in Bangladesh. He has been active with different trade bodies of home and abroad and was the
President of SAARC Chamber of Commerce and Industry (SCCI); Federation of Bangladesh Chambers of Commerce and Industries
(FBCCI); Metropolitan Chamber of Commerce and Industry (MCCI); Bangladesh Association of Pharmaceutical Industries (BAPI);
Bangladesh Textile Mills Association (BTMA) and Association of Television Channel Owners (ATCO).
Mr. Rahman is the Chairman of IFIC Bank Limited. He is the also the Chairman of the Board of Governors of Bangladesh Enterprise
Institute; Board of Editors of English daily The Independent; and news channel Independent TV. He is a keen promoter of sports and
is the Chairman of Abahani Ltd Dhaka, the premier sporting club of the country. He holds a degree from the University of Karachi.
Annual Report 2020-21 | Board and Management | 35
Nazmul Hassan MP
Managing Director
Mr. Nazmul Hassan MP is a prominent and highly respected business leader of the country. Besides being
the Managing Director of Beximco Pharmaceuticals Limited, he is the Chairman of the Board of Directors
of Nuvista Pharma Ltd, and Beximco Pharma API Limited and a Director of Sanofi Bangladesh Limited- the
subsidiary companies of Beximco Pharma. He is also a 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 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. He is the
President of IBA Alumni Association; a Member of the American Management Association and Australian
Institute of Management.
Mr. Hassan is an elected Member of Parliament (MP) of Bangladesh Since 2009. He is a Member of the
Parliamentary Committee for Finance, Sports & Defense.
Mr. Hassan is passionate to sports and actively involved with Bangladesh’s national cricket. He is currently
the president of Bangladesh Cricket Board (BCB), elected to the position for three consecutive terms.
He is a board member of the International Cricket Council (ICC), ICC Business Corporation (IBC), and a
Member of HR & Remuneration Committee, ICC. He was the elected President of Asian Cricket Council
(ACC) for 2018.
Mr. Hassan is the President of Bangladesh Association of Pharmaceutical Industries (BAPI) and a member
of Int’l Society for Pharmaceutical Engineering (ISPE). He is involved with various national and international
committees and task forces related to formulation of healthcare and drug policy.
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, Managing
Director of Bangladesh Export Import Company (Beximco) Limited. 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 Beximco Synthetics Ltd., Shinepukur Ceramics Ltd. and Beximco Securities Ltd.
36 | Board and Management | Annual Report 2020-21
Abu Bakar Siddiqur Rahman
Director
Mr. Abu Bakar Siddiqur Rahman held senior positions at a number of entities within the Beximco Group of
companies and has an extensive 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.
Iqbal Ahmed
Director
Mr. Iqbal Ahmed has been with the Beximco Group since 1972 and held senior positions in a number of
entities within the Beximco Group of companies. He has over 45 years business experiences in trading, jute,
textile, pharmaceuticals, engineering, IT and other sectors. Mr. Ahmed has been in the Board of Beximco
Pharma since 1985. He is also a director of Bangladesh Export Import Company Limited, Shinepukur
Ceramics Limited, and Beximco Synthetics Limited. He was the publisher of “The Independent” and
“Muktakantha” an English and a Bengali national daily newspaper respectively, in Bangladesh. He received
his Bachelor’s Degree in Science from the University of Dhaka in 1966.
Quamrun Naher Ahmed
Director
Ms. Quamrun Naher Ahmed is a retired civil servant. She last served as an Additional Secretary, Financial
Institution Division, Ministry of Finance. Starting at an entry level of civil service, she has risen through the
ranks to the senior administrative and policy level. In her career she served senior positions in different
ministries including Ministry of Shipping, Commerce, Home affairs, and Fisheries & Livestock. She was
also a Director of Karmasangsthan Bank for more than five years.
She had an excellent academic record with an MPhil in Social Change from the Norwegian University of
Science and Technology (NTNU) and an M.S.S. in Economics from the University of Dhaka.
She attended a wide range of trainings, workshops, and conferences covering different fields including
public administration, development management, law, accounts and finance, held home and abroad.
Currently she is a full time member of National River Conservation Commission, a Board member of IFIC
Bank Limited, IFIC Securities Ltd., IFIC Money Transfer (UK) Ltd. and Nepal Bangladesh Bank Ltd.
Reem H Shamsuddoha
Director
Ms. Reem H Shamsuddoha had her Bachelor of Science in Business Administration from Fordham University,
Gabelli School of Business, New York. She has participated in professional training in Advance Management
Program in the University of Hong Kong. She has a wide range of working experience in renowned local and
overseas organizations including Daraz, TapFury LLC, International Quality and Productivity Center (IQPC),
Opal Financing Group and had Internship experience with ASB Communications and Elida Olsen et CIE of
New York.
Ms. Reem is a member of the Board of Directors of a number of listed and non-listed companies including
Global Voice Holdings Limited, Global Voice Telecom Limited, Beximco IOC Petroleum & Energy Limited, and
Bangladesh Export Import Co. Ltd.
Annual Report 2020-21 | Board and Management | 37
Mamtaz Uddin Ahmed
Independent Director
Professor Mamtaz Uddin Ahmed joined Beximco Pharmaceuticals Limited as an Independent Director on
July 2020. He is currently a professor of the Department of Accounting and Information Systems, University
of Dhaka and has over 36 years of teaching experience at university level. Professor Ahmed is the Treasurer
of the University of Dhaka and Chairman of the Bureau of Business Research. He is an experienced Board
member, currently an Independent Director of Alhaj Textile Mills Limited and a Director of Ashuganj Power
Station Company Ltd. His previous Board positions include Director of Chittagong Stock Exchange Ltd. and
Dhaka Stock Exchange Ltd.
In addition, Professor Ahmed was the Vice President of the South Asian Federation of Accountants (SAFA)
and President of the Institute of Cost and Management Accountants of Bangladesh (ICMAB). Professor
Ahmed obtained his Bachelor and Masters in Accounting from the University of Dhaka. He also obtained
MBA from University of Castle, USA and CMA degree from ICMAB, Bangladesh.
Dr. Md. Ibraheem Hosein Khan
Independent Director
Dr. Md. Ibraheem Hosein Khan is a retired civil servant, last served as the Secretary, Ministry of Cultural
Affairs, Government of Bangladesh. Before his retirement from service in the Bangladesh Government, he
worked in different Government departments including the Prime Minister’s Office, Ministry of Land and
Ministry of Cultural Affairs. Dr. Khan has also served as Administrator for the Dhaka South City Corporation.
Dr. Khan holds a PhD from Jahangirnagar University, Dhaka, two master and two bachelor degrees from
institutions in Bangladesh, Australia and the United Kingdom.
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 degrees from the University of Dhaka. He also holds an MBA with major in Human
Resource Management. Mr. Asad Ullah qualified as Chartered Secretary from the Institute of Chartered
Secretaries of Bangladesh (ICSB) and is a Fellow Member of the institute. He was four times President of
ICSB. He is a widely experienced person with long career in Company Secretarial functions.
38 | Board and Management | Annual Report 2020-21
Executive Committee
Executive Committee comprises five members- Mr. Osman Kaiser Chowdhury, Mr. Nazmul Hassan MP, Mr. Rabbur Reza, Mr.Mohammad
Ali Nawaz and Mr. Afsar Uddin Ahmed. Mr. Chowdhury and Mr. Hassan are also members of the Board of Directors.
Rabbur Reza
Chief Operating Officer
Mr. Rabbur Reza is a pharmaceutical industry expert with wide experience in the areas of sales, marketing,
brand management, international business development, operations management, partnerships and
acquisition. In addition to his role in Beximco Pharma, he is the Managing Director of Nuvista Pharma
Ltd. and Beximco Pharma API Ltd and CEO of Sanofi Bangladesh Ltd., subsidiary companies of Beximco
Pharma. He had previously worked for Biotech and Milton Pharmaceuticals in Australia.
Mr. Reza holds a Bachelor of Pharmacy degree 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 and London Business School.
He is a fellow of Australian Institute of Management, a member of Pharmaceutical Society of Australia,
and a member of Montreal Protocol’s Medical Technical Options Committee (United Nations Environment
Program–UNEP). Mr. Reza received the “Australian Alumni Excellence Awards 2014” in the category of
Business and Leadership.
Mohammad Ali Nawaz
Chief Financial Officer
Mr. Mohammad Ali Nawaz is a well-rounded finance professional with extensive exposures in corporate
finance and restructuring, merger and acquisitions, project management, supply chain and operations
management. After joining Beximco Group as a Management Trainee in 1990, he worked for different
entities within the group, in varying capacities. He was appointed Chief Financial Officer of Beximco Pharma
in 2009. He is also a Director of Nuvista Pharma Ltd., Sanofi Bangladesh Ltd., and Beximco Pharma API Ltd.
Mr. Nawaz qualified as a CMA from the institute of Cost and Management Accountants of Bangladesh,
and is currently a Fellow Member of the Institute. He also obtained an MBA from the Institute of Business
Administration, University of Dhaka.
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, Yorkshire, 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.
He is a Director of Beximco Pharma API Ltd. and BioCare Manufacturing Sdn Bhd, Malaysia, an associate
company of Beximco Pharma. He served Sanofi-Aventis as Director Marketing of its Bangladesh business
overseeing the marketing operations of several business units. Mr. Ahmed also worked as the Country
Manager of BPL’s Pakistan operation.
Annual Report 2020-21 | Board and Management | 39
We strive to convert every possibility into a reality. We continue to develop capabilities
and build scale in order to meet the challenges of the future.
Management Committee
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Rabbur Reza
Chief Operating Officer
Mohammad Ali Nawaz
Chief Financial Officer
Afsar Uddin Ahmed
Director, Commercial
Lutfur Rahman
Director, Manufacturing
Zakaria Seraj Chowdhury
Head of Distribution Services &
Director, International Marketing
Shamim Momtaz
Director, Manufacturing
Mohd. Tahir Siddique
Director, Quality
Rizvi Ul Kabir
Director, Marketing
Jamal Ahmed Choudhury
Director, Accounts & Finance
Ms. Roksana Hassan
Executive Director, Financial Compliance
Audit and Internal Control
Dr. Selina Akter
Executive Director
Department of Medical Affairs
Shawkat Haider, Ph D
Executive Director, Business Development
& Corporate Affairs
M A Arshad Bhuiyan
General Manager
Human Resource
Annual Report 2020-21 | Board and Management | 41
Beximco Pharma introduces
Beximco Pharma introduces
World’s first generic Molnupiravir,
an oral antiviral drug for COVID-19 treatment
Operational Highlights
Product Portfolio
24 new generics (2 post-period) in 34 different presentation forms in domestic market
• 4 for the First Time in Bangladesh
• Remmo, a buffered esomeprazole MUPS formulation of Esomeprazole
• Fulphila, a USFDA and EMA approved first Biosimilar Pegfilgrastim from Mylan
• The world's FIRST generic Molnupiravir, an oral antiviral drug for COVID-19 treatment (Post period).
10 new products from subsidiary Nuvista Pharma
International Market
• Completed 25 registrations for 22 products in 14 countries
• Entered 8 new countries: Oman, Lebanon, Venezuela, Bolivia, Kosovo, Mexico, Congo, Mongolia
• US FDA approval for Flecainide Acetate an antiarrhythmic drug
• US FDA approval for muscle relaxant drug Baclofen (post period)
Acquisition & Partnerships
• Acquired 54.6% stake in Sanofi Bangladesh Limited from May & Baker Limited and Fisons
Limited, UK (Post period)
• Appointed as the exclusive distributor of Serum Institute of India Pvt. Ltd (SII), for the distribution of
Oxford's AstraZeneca COVID-19 vaccine in Bangladesh
• Signed the "Open pledge from Global Manufacturers of Generic Medicines against COVID-19"
Awards & Accreditation
• CPhI Pharma Award in the category of 'Innovation in Response to COVID-19'
• Global Generics & Biosimilars Awards 2021 in the category of “Company of the year, Asia Pacific”
(post period).
• ANVISA (Brazil) approval for OSD (T-II), MDI and Sterile unit
Annual Report 2020-21 | Operational Highlights | 45
Accolades and Awards
CPhI Pharma Awards 2020
AwardsAwardsAwardsAwardsAwardsAwardsAwardsAwardsAwardsAwardsAwards
Powered
Powered
by
by
Pharma
Pharma
Informa
Informa
Intelligence
Intelligence
Excellence in Pharma:
Excellence in Pharma:
Innova�on
Innova�on
Innova�on
Innova�on
Innova�on
Innova�on
in
in
Response to
Response to
COVID-
COVID-
WinnerWinner
Winner
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Received highly prestigious CPhI Pharma Award in the category of ‘Innovation in Response to COVID- 19’
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Beximco Pharmaceu�cals
Bangladesh Business Innovation Award 2021
Won “Public Service-Best COVID-19 Response
awards” at the 3rd edition of the Bangladesh
Innovation Award 2021
46 | Accolades and Awards | Annual Report 2020-21
Global Generics & Biosimilars Awards 2021
Company of the year, Asia Pacific
Winner
Beximco Pharmaceu�cals
Won the Global Generics & Biosimilars Awards 2021 in the category of “Company of the year, Asia Pacific”
Our People
48 | Our People | Annual Report 2020-21
At Beximco Pharma, we firmly believe that our greatest resource is our people. We
consider our people as the catalyst behind our progress and value contribution of
each and every employee towards achieving our goals. Throughout the ongoing
pandemic disruptions our people have shown unwavering dedication, agility and
resilience. Their committed effort has enabled us to serve our patients and other
stakeholders and helped continue uninterrupted operations of our business. We
believe, with the accumulated strength of our people, we can reach to a greater
height in the days ahead.
Our commitment is to ensure the highest level of employee engagement by
providing a congenial environment, competitive remuneration packages, end-
service benefits, and importantly, career progression in the organization. BPL’s
HR policy is designed to attract committed and talented resources with ability to
get aligned with the Company’s mission, vision, values and goals and drive the
value chain of the Company. The Company adopts objective, fair and unbiased
evaluation criteria in the selection and recruitment process.
Our people is well composed with adequate diversity in terms of education, age,
experience, and gender. We try to hire people from diversified fields of expertise.
We focus on gender diversity and prefer female candidates where male and
female are found equally qualified for any position. Currently, Beximco Pharma
employs 210 full time permanent female employees at different levels, two of
them are members of the Company’s Management Committee. Employment of
woman is increasing gradually across all levels of organization and in 2020-21,
the number of female employees has risen by 31% over last year. The Company
does not make any discrimination in terms of gender, religion, faith, color or
nationality in the selection and recruitment process.
The Company is creating new employment opportunities and during the year
under review, we recruited 718 employees in permanent positions befitting
our business growth. There was a net addition of 349 employees in 2020-21
against 266 in 2019-20.
5104
4755
4489
e
e
y
o
l
p
m
E
l
a
t
o
T
2018-19
2019-20
2020-21
Annual Report 2020-21 | Our People | 49
Net Addition to Head Counts
349
266
234
2018-19
2019-20
2020-21
Training and Development:
Despite the disruptive pandemic situation, we arranged several
training programs for different level of employees to equip them
with right knowledge and update their skills. The Company has
dedicated departments both at factory level and head office
who carried out need based and tailored training programs
throughout the year for employees across the organization.
Besides our own expertise, we invite local and international
trainers and experts to conduct trainings. Selected employees
get overseas training. During the year, 252 employees received
specialized training
in areas such computerized system
validation, brand management, strategy formulation and WHO
GSDP implementation, arranged by external organizations home
and abroad.
Diversity of Professionals
Accountants/Lawyers/PhDs
/Other Professionals 369
Pharmacists 463
Chemist 293
Engineers 481
Doctors 27
50 | Our People | Annual Report 2020-21
Learning and Development Centre at our Plant
Annual Report 2020-21 | Our People | 51
The unwavering commitment of our people-their energy and enthusiasm-remain
the driving force that leads us towards achieving newer milestones.
Covid-19 Support to Employee
At the beginning pandemic in 2020, we initiated package of COVID-19 support services for our employees which include 24 hours
hotline services for the employees and their family members; free medical tests; free medicine and ambulance services; isolation
and quarantine centers; oxygen cylinder supports; emergency food supply; hassle and risk free COVID-19 sample collection centers
at convenient places; and 24/7 medical consultation services by our dedicated medical service team; and mental health care. These
supports for the employees and their families continued this year as well. We continued preventive measures such as use of masks
all times, temperature screening, sanitization, and wearing of personal protective equipment where necessary.
Our HR department issued different guidelines for the employees including restriction on outside travelling, attending at public
gatherings etc. to minimize the risk of COVID-19 infections.
In collaboration with NOVUS Clinical Research Services, Beximco Pharma established a dedicated isolation center equipped with high
flow oxygen facility for emergency use by employees in emergency cases of unavailability of hospital facilities. The center is manned
with doctors, nurses and other medical staffs.
Annual Report 2020-21 | Our People | 53
Environment, Health and Safety
Beximco Pharma cares for environment and we are mindful of our responsibilities to protecting the environment and promoting
sustainable eco-friendly operations. The Compnay endeavors to provide a safe and healthy workplace, promote environmental
excellence in our operations, and meet global EHS standards.
We consciously select technologies that meet environmental standard and use state of art machineries and equipment in our
manufacturing operation. Our facilities and processes are designed to keep the environmental effects of the manufacturing activities
to a practicable minimum level. Lliquid and solid wastes and gaseous emissions generated from our operations controlled, disposed,
and managed in the best practicable means. We actively comply with relevant government regulations and industry standards and all
our manufacturing facilities have got the relevant certifications from the Department of Environment.
Beximco Pharma has stringent Occupational Health and Safety System in place to ensure the health and safety of the employees,
contractors, visitors and neighbors who may be affected by its operations. The Company has a separate Environment, Health and
Safety (EHS) Department manned with qualified personnel to look after EHS compliance issues. The Company also has an EHS
committee composed of high-level management employees. The committee meet once in every two months to evaluate overall EHS
situation and resolve identified issues. Beximco Pharma conducts EHS audit once every year. The Company also has an “Environment
Health and Safety” policy which is binding for all.
Environment Sustainability Measures
Solid, Liquid Waste and Gaseous Emission Control and Conduction
The solid wastes generated from the manufacturing operation are appropriately managed complying to regulations and have no
degrading effect on the environment and ecological system. The entire waste management is handled with the Best Available
Technologies (BAT) that include incineration plant, dust control units and scrubber to ensure zero discharge of solid waste that
may harm the surrounding ecological system. Beximco Pharma has its own incineration unit, having a capacity of 250kg per hour
depending on calorific value of the products and appropriate system for the purification of generated smoke. As per international
guideline, the height of the chimney is more than 30 meter. The quality of gas finally discharged from the incinerator is well within
acceptable standard set by the Directorate of Environment (DoE).
Proper filter in the exhaust has been implemented to prevent dust flowing outside the building and is controlled by Building
Atomization System (BAS). We installed in High-Efficiency Particulate Air (HEPA) filters and proper scrubber for enhanced protection
in manufacturing areas. Dust particles collected from the filters are incinerated. There is treatment device to purify the vapour before
discharging into atmosphere. Quality of air emission from Incinerator, Boiler and Generator etc. are regularly monitored.
A considerable amount of wastewater is generated mainly from washing and cleaning of machineries, empty bottles, utensils, floors,
etc., The other source of liquid waste consists of dissolved and suspended API, excipients, laboratory re-agents; water from the
cooling tower. The Company has adequate control over managing the liquid waste and has its own effluent treatment plant. No toxic
wastewater is discharged into the open land or water bodies without treatment. About 50% of this water is recycled and used for
gardening, car washing and water scrubber of incinerator while the settled sludge is incinerated.
The work of setting new generation wastewater treatment process (PLC based Membrane Bioreactor technology) considering the
future load of wastewater generation has significantly progressed. This turnkey project having a treatment capacity of 605 m3/day is
being implemented by Envision Enviro Technologies of India. The Submerged Membrane Unit (SMU) is being procured from KUBOTA
Corporation, Japan.
Carbon Footprints
Beximco Pharma measures the carbon footprint in the factory surroundings once in every three years as per government regulations.
The results have always been well below the standard limit set by DoE. The latest 2021 findings are as below:
54 | Environment, Health and Safety | Annual Report 2020-21
CO2
ppm
5,000
425
CO
ppm
50
0
NO2
ppm
5
0.14
NO
ppm
25
1.70
TVOC
ppb
1,000
0.96
PM10
µg/m3
150
31.51
SPM
µg/m3
200
192
Government Standard
Result in company
surroundings
Saving Water and Energy
We inspire the reduced use of natural resources and endeavor to use system, process or technology that helps saving water and
energy. In this context we installed sensor based water taps in our facilities to reduce social water consumption. We are re-using the
waste water of our WFI (water for injection) treatment plant to clean cooking utensils of used in canteen.
Beximco Pharma has introduced Economizer in the exhaust line of boiler to preheat feed water and also uses condensate recovery
system to utilize hot water as a feed water of boiler. Moreover, Exhaust Gas Boiler (EGB) has been installed near the power generation
unit to utilize the exhaust heat being exposed in the atmosphere to produce steam. This in one hand is thus protecting atmospheric
air heat and saving energy on the other hand.
Beximco Pharma’s new Learning and Development Center has been designed and built with using steel sheets and glass panels for
maximum use of daylight.
Different parameters of the treated water of the plant as on September, 2021 is:
Tests
pH
TDS
Dissolved Oxygen
COD
BOD
Arsenic
Specification
6.0 to 9.0
NMT 2,100 ppm
4.5 to 8.0 ppm
NMT 200 ppm
NMT 50 ppm
NMT 0.2 ppm
Results
7.39
533
5.1
131.85
41.75
0.005
Noise, Odor And Vibration Management
Noise and certain vibrations generally produced by the electromechanical equipment may affect the surrounding. The noise requires
no mitigation step as the factory is located in a non-residential/commercial area falling under ‘Ga’ area (mixed) as per standard. Our
machineries are sound efficient and has very insignificant effect in the sound level. Machine cover in required cases are also installed
to muffle the sound level. The working personnel inside the plant are provided with Personal Protective Equipment (PPE). Vibration
problems are mitigated as the reactors are located at a proper distance from the boundary level. There is no major odor problem as
the factory premises are regularly disinfected and scrubbers are installed in the main header of gas emission line. Latest measures
of Noise level around the factory is:
Sound dBa (2021)
Sound dBa (2020)
Sound dBa (2019)
Government Standard
Result in company surroundings
75
57
75
54
75
59
Child Labour
Beximco Pharma firmly follows the codes of Bangladesh Labor Act in all respects including restrictive provisions relating to
“Employment of Adolescent”. The Company does not employ any Child labour directly or indirectly.
Annual Report 2020-21 | Environment, Health and Safety | 55
Our CSR Initiatives
CSR is an integral part of our business. As a responsible business entity, Beximco Pharma undertakes different CSR programs aiming
at serving the community at large. We are focused especially at three key areas- healthcare, education for the underprivileged
children, and research. Our major CSR initiatives throughout the year include:
Free Remdesivir Injection
Beximco Pharma continues to supply Remdesivir injection free of cost to all government hospitals across the country for COVID-19
treatment. Beximco also donated 10,000 vials of Remdesivir to India through the government’s medical assistance program. The
supplies also included oral anti-viral, PPE kits and zinc, calcium, vitamin C tablets.
Mask Awareness Campaign
Beximco Pharma sponsored country’s largest mask awareness campaign in partnership with Jaago Foundation, a leading volunteer
organization in Bangladesh. The campaign took place during Durga Puja festival under the title “Mask Pori Pujai Ghuri”– aimed to
inspire and create awareness among people to wear masks during the pandemic. Large quantities of masks, sanitizers and leaflets
were provided for this campaign.
56 | Our CSR Initiatives | Annual Report 2020-21
Support to the Government Vaccination Program
Beximco Pharma has been providing full logistics support to the government’s COVID-19 vaccination program in terms of storage
and nationwide distribution of Sinopharm, Moderna and AstraZeneca vaccines totally free of cost. The company has also purchased
several ultra-cold freezers for supporting the storage of Pfizer vaccine received through COVAX.
Annual Report 2020-21 | Our CSR Initiatives | 57
Donation of Female Hygiene Products
handed
Pharma
Beximco
over
menstrual hygiene products to Sarkari
Shishu Paribar (Girls) authorities on
June 30, 2021.These hygiene products
were distributed among 1786 girls aged
above 13 years living in 42 Sarkari
Shishu Paribar (Girls) orphanages across
the country.
Support to IEDCR
Beximco pharma has provided logistics and transportation support throughout the year to the Institute of Epidemiology, Disease
Control and Research (IEDCR) for sample collection from various parts of the country. IEDCR is the national reference laboratory,
which accounts for disease surveillance and disease outbreak investigation.
COVID-19 Equipment to Dhaka Medical College Hospital (DMCH)
Beximco Pharma handed over large quantities
of COVID-19 equipment,
including PPE,
ceiling fans and face masks to support the
frontline health workers of Dhaka Medical
College Hospital. It was part of the company’s
continued initiatives to combat COVID-19
pandemic.
Central Oxygen Plant at Dohar and Nawabganj
Beximco Pharma has been at the forefront of the fight against COVID-19. The company provided full support to set up an oxygen plant
at the Nawabganj Health Complex and Dohar Health Complex with central refillable oxygen storage capacity of 254 cubic meters and
431 cubic meters respectively to ensure uninterrupted supply of oxygen for the COVID-19 patients.
58 | Our CSR Initiatives | Annual Report 2020-21
Support to Jaago’s “Back To School- Education Program”
Schools in Bangladesh remained closed for long eighteen monhts due to COVID-19. Beximco Pharma extended support through
Jaago Foundation to ensure health and safety of the returning students on reopning of the schools. The company donated COVID-19
hygiene products including sanitizer, spray bottle, masks, PPE etc to the underprivileged kids.
Donation of Medical Equipment to Charitable Dental Clinic
Donated medical equipment to a charitable dental clinic founded by Dr. Osama Bin Noor in Raipura, Narsingdi to provide quality oral
health care for around half a million people living in the village. Dr. Osama Bin Noor is well known for winning Queen’s Young Leaders
2016 award.
Annual Report 2020-21 | Our CSR Initiatives | 59
Corporate Events
Sanofi Acquisition: Deal Closing Ceremony
Beximco Pharmaceuticals Limited acquired 54.6% stake in Sanofi Bangladesh Limited. A brief ceremony on the occasion took place
at a hotel in Dhaka. The event was attended by Beximco Pharma Managing Director Nazmul Hassan MP, BCIC Chairman Shah Md
Imdadul Haque, Secretary to the Ministry of Industries, SM Alam, and other senior officials from both Sanofi and Beximco.
60 | Corporate Events | Annual Report 2020-21
Launching of World’s First Generic Molnupiravir
Beximco Pharmaceuticals Limited, launched the world’s first generic Molnupiravir on 9th November 2021, following the Emergency
Use Authorization by the Directorate General of Drug Administration (DGDA). Molnupiravir is an oral antiviral drug for symptomatic
COVID-19 recently developed by Merck, Sharp & Dohme (MSD) and Ridgeback Bio-therapeutics. Beximco Pharma’s branded generic
version of Molnupiravir is being marketed as Emorivir.
Annual Report 2020-21 | Corporate Events | 61
We continuously review, update and expand our product portfolio
in order to ensure that patients have access to newer generics
and better treatment options at an affordable price.
Announcement of the Preliminary Findings of icddr,b’s Clinical Trial of Ivermectin
Beximco Pharma funded the clinical trial conducted by internationally renowned research organization icddr,b to evaluate the efficacy
of Ivermectin in COVID-19 patients. The randomized, 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 was conducted
in hospitalized adults diagnosed with COVID-19. The participating hospitals were Mugda Medical College and Hospital; Kurmitola
General Hospital, and Dhaka Medical College & Hospital, Dhaka. The study findings have been published in the International Journal
of Infectious Diseases (IJID) on December 2, 2020.
On December 7, 2020, icddr,b organized a dissemination seminar to share preliminary findings of the concluded study that was held
in a local Hotel. National public health experts, representatives from the DGHS, DGDA, BMRC, icddr,b, Beximco Pharma and media
were also present at the seminar.
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.”
Annual Report 2020-21 | Corporate Events | 63
Media Spotlights
Forbes Singapore featured Beximco Pharma.
Beximco Pharma’s Learning and Development Center was featured in The Business Standard- a popular news portal of Bangladesh.
64 | Media Spotlights | Annual Report 2020-21
Chief Operating Officer (COO) of the Company, Mr. Rabbur Reza was interviewed by The Business Standard about Beximco Pharma’s
success in the US drugs market, and the overall export potentials of Bangladesh’s pharmaceutical industry.
Media coverage of the manufacture of Molnupiravir.
Annual Report 2020-21 | Media Spotlights | 65
Chairman’s Statement
A S F Rahman
Chairman
I am delighted to report yet another year of excellent performance of Beximco Pharmaceuticals Limited. Amidst pandemic-hit
economic and social onslaught, we ended the year with commendable operational and financial performance. We not only achieved
our targets but also set few milestones, delivered results and progressed towards successful accomplishment of our strategic goals
to strengthen the shareholders’ value.
Economic and social life in Bangladesh throughout 2020-21 remained volatile because of the pandemic. Despite constraints and
disruptions, we attained impressive sales growth in domestic and international markets, achieved remarkable profit growth and
further reinforced our market position. Our overall sales increased by 15.2% with domestic market growing by 15.4% and export by
13.5% over prior year. Pre-tax and post-tax profit recorded 37.1% and 45.7% YoY growth, respectively. This is indeed an appreciable
achievement and manifest our strength to withstand challenges and uncertainties to achieve business goals.
66 | Chairman’s Statement | Annual Report 2020-21
As part of our strategy to diversify, expand and reinforce our market position, we completed our second strategic acquisition within
three years following the successful acquisition of Nuvista Pharma in 2018. Beximco Pharma acquired 54.6% stake in Sanofi
Bangladesh Limited, the Bangladesh operation of the multinational pharmaceutical company Sanofi S.A. We acquired the foreign
shareholding in the Company from May & Baker Limited and Fisons Limited, UK while the remaining 45.4% remains with the
government of Bangladesh represented through the Ministry of Industries and Bangladesh Chemical Industries Corporation. This
acquisition is a strategic fit for Beximco Pharma and I believe, it will generate opportunities for long-term value creation for the
Company.
We introduced the world’s first generic remdevisir in 2020. This year we set yet another milestone and drew global attention when
Beximco Pharma launched a generic copy of molnupiravir, the first oral antiviral drug for the symptomatic treatment of COVID-19.
Our pioneering roles and initiatives to innovate and deliver high-quality medicines to the people have continued to earn recognitions
from home and abroad. This year we won the CPhI Pharma Awards 2020 for “Innovation in Response to COVID-19”. We also won the
Global Generics & Biosimilars Awards 2021 in the category of “Company of the year, Asia Pacific” for the second time.
To sustain the growth momentum, we made significant investment in our Unit-3 manufacturing facilities. The project is almost
complete and few of the manufacturing lines are now producing validation batches, while the rest will be operational in phases
after validation and product transfer. This facility, once fully operational, will significantly increase our production capacity, ease our
manufacturing constraints and secure our future growth.
Mr. Shah Monjurul Hoque, an Independent Director of the Board and a member of the Audit Committee, retired on completion of his
tenure of office for two consecutive terms. On behalf of the Board, I thank Mr. Hoque for his guidance and valuable contribution as a
director of the Company.
Mr. Hoque has been replaced by Dr. Md. Ibraheem Hosein Khan. Dr. Khan is a retired Civil Servant and last served as the Secretary,
Ministry of Cultural Affairs, Government of Bangladesh. I welcome Dr. Khan in the Beximco Pharma family. The Board has appointed him
as the Chairman of the Nomination and Remuneration Committee (NRC). I assure Dr. Khan all necessary co-operation in discharging
his duty as an Independent Director and Chairman, Nomination and Remuneration Committee (NRC).
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.
I am truly proud of our devoted people, who showed strong resilience and commitment during this period of pandemic turmoil. It’s
because of their unwavering dedication we could continue seamless operations and steady supply of medicines to the people of
home and abroad. I extend my sincere gratitude to each of our employees.
I also note with gratitude the contributions of all healthcare professionals and workers especially, the doctors, nurses, and other
medical caregivers, for their invaluable services to the pandemic stricken people.
Finally, I express my thanks to you, respected shareholders, for extending invaluable support at all times. I wish you all good health
and safe life.
Thanking you
A S F Rahman
Chairman
Annual Report 2020-21 | Chairman’s Statement | 67
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68 | Chairman’s Statement | Annual Report 2020-21
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Annual Report 2020-21 | Chairman’s Statement | 69
Nazmul Hassan MP
Managing Director
Management Discussion and Analysis
We completed yet another challenging year amidst the ongoing pandemic that continued to disrupt business and economic activities
around the world. Global Covid-19 deaths have now surpassed five million and countries are still battling the highly infectious delta
strain of the virus. The biggest vaccination campaign in history is currently underway but there remains a wide gap in vaccine access.
Out of 7.86 billion doses of vaccine administered worldwide, only 5.1% have been in low-income countries and this vaccine inequity
remains the biggest obstacle to ending this pandemic.
Bangladesh started its nationwide vaccination in early February with AstraZeneca/Covishield vaccine from Serum Institute India
(SII), even ahead of many developed nations. But an unforeseen export restriction on vaccine imposed by the Indian Government
due to their worsening pandemic situation, badly disrupted Bangladesh’s vaccination program. The country has so far received 8
million doses of Covishield vaccine out of contracted 30 million doses being purchased under a tripartite agreement among Beximco
Pharma, GoB and SII. However, as the Covid vaccine manufacturers in developed nations ramped up their production with large
proportion of their populations already vaccinated, some rich countries namely US, Canada, UK, Japan, Germany began donating
surplus vaccines to low and middle-income countries through the WHO-led Covax initiative. The country till to date has administered
92 million doses with 21% population fully vaccinated. Majority of the vaccines are currently being supplied under GoB’s commercial
deal with Chinese firm Sinopharm, while large quantities are committed through Covax to vaccinate almost 70% our population by
the first quarter of 2022.
On the economic front, as the pandemic headwinds ease and economic activities are returning to normal, Bangladesh achieved GDP
growth of 5.4% in 2020-21 with per capita income rising to $2,227. According to the latest World Bank projection, Bangladesh’s GDP
will grow by 6.4% in the 2021-22 driven by export and remittance. As Bangladesh celebrates the golden jubilee of its independence,
the country has achieved another historic milestone in its pursuit of development when it received the final recommendation from UN
to graduate from the LDC category. Bangladesh was set to leave the LDC group in 2024. However, in view of the COVID-19 pandemic
and, as per the request from Bangladesh government, the graduation year is now deferred to 2026.
Global pharma industry remains at the forefront in the fight against the pandemic and Bangladesh is no exception. Despite facing all
the pandemic challenges, Bangladesh pharma industry maintained double digit growth. Pharmaceutical export from Bangladesh also
grew by 25% to $169 million in the last fiscal. Export of COVID-19 drugs, especially remdesivir and Favipiravir, played an important
part in achieving this growth. Government supportive policy towards the industry remains unchanged.
Review of Operations
Sales, Products and Markets
Beximco Pharma continued to perform strongly maintaining its growth momentum with remarkable increase in sales, operating,
pre-tax and post-tax profit- all attaining impressive double digit growth. Our domestic sales revenue grew by 15.4% to reach at
Taka 26,369 million. Defying the supply chain and logistic challenges, we managed to maintain the growth trajectory of our export.
During the year, our export revenue fetched Taka 3,124 million registering a 13.5% increase over last year, with over 50% of the total
export shipped to highly regulated developed markets. Beximco Pharma alone now contributes 22% of the country’s total export of
pharmaceutical products.
We expanded our product portfolio with 24 new generics available in 34 different presentations, 4 of them for the first time in
Bangladesh. We have maintained our leadership positions in key therapy areas, namely cardiovascular, respiratory and analgesic.
We also performed exceptionally well with diabetes, anti-infective and CNS categories. During the year, we introduced buffered
Esomeprazole MUPS Brand - Remmo® which has been well accepted by the market. We also launched Fulphila® (6 mg/ 0.6 ml
prefilled syringe), the first USFDA and EMA approved biosimilar pegfilgrastim from Mylan for supportive treatment of chemotherapy.
Fulphila is our second biosimilar product launched under the Mylan deal.
In November 2021, Beximco Pharma became the first in the world to launch a generic copy of molnupiravir, the first oral antiviral
drug for the symptomatic Covid-19, which was originally developed by Merck Sharp & Dohme (MSD) and Ridgeback Biotherapeutics.
Molnupiravir is being hailed as a game changer which reportedly cut the risk of hospitalisation and death by half. Beximco Phamra’s
branded generic version of molnupiravir is being marketed as Emorivir. Mentionable that, Beximco Pharma made global headlines
with the launch of the world’s first generic version of remdesivir, under the brand name bemsivir, in May 2020.
Annual Report 2020-21 | Management Discussion and Analysis | 71
In the international market, we completed 25 registrations for 22 products in 14 countries and entered eight new markets, namely
Oman, Lebanon, Venezuela, Bolivia, Kosovo, Mexico, Congo, and Mongolia. Beximco Pharma remains the country’s lone exporter of
medicines to the US and this year the Company launched its 7th product an anti histamine drug cyproheptadine, in this important
market. We received the US FDA approval for antiarrhythmic drug flecainide acetate (50, 100, and 150 mg tablets) and muscle
relaxant drug baclofen (10 and 20 mg tablets). As of today, we have nine ANDAs approved in the US market that have been fully
developed in-house besides eight ANDAs acquired from Sandoz in 2019.
Acquisition of Sanofi Bangladesh
After the successful acquisition of Nuvista Pharma in 2018, this year we acquired a majority stake (54.6 percent) in Sanofi Bangladesh
Limited (SBL) a multinational pharmaceutical company operating in Bangladesh since 1958. This acquisition is a major milestone for
us and in line with our strategy to further consolidate our domestic market position and accelerate growth. SBL produces over 100
generic brands with strong footings in cardiology, diabetes, oncology, dermatology and CNS. SBL also sells Sanofi’s global brands of
vaccines, insulins and chemotherapy drugs in Bangladesh through direct imports. SBL’s rich product offerings will largely supplement
our product portfolio and reinforce our strategy to diversify into new and expanding specialty therapy areas. We believe leveraging
our robust product development skills & strong sales-marketing infrastructure and utilizing the manufacturing platforms of SBL, we
will be able to generate substantial opportunities for long-term value creation for Beximco Pharma.
Support to Community
Ensuring uninterrupted supply of quality medicines during lockdowns and supply chain disruptions was more than just a business
to us. Our dedicated and committed team successfully accomplished this goal. Beximco Pharma took several initiatives to support
the community throughout the pandemic. Notable among them, were donating negative pressure isolation canopies to leading
hospital, supplying remdesivir free of cost to Government designated COVID-19 hospitals, providing PPE and masks for the health
professionals, giving logistics support to DMCH and IEDCR, sponsoring country’s biggest mask awareness campaigns etc. Beximco
Pharma offered full support to the country’s vaccination program by providing free of charges storage and nationwide distribution
services of all COVID-19 vaccines namely Sinopharm, Moderna, AstraZeneca procured by the Government from different sources
other than the supply under contract with SII. As on the reporting date, we have distributed 90 million doses, almost all of the country’s
COVID19 vaccines nationwide.
Awards and Recognitions
This year we won the prestigious CPhI Pharma Awards 2020 for “Innovation in Response to COVID-19” which is a clear testimony
of our initiatives and capabilities to face challenging situations. The Company also won the Global Generics & Biosimilars Awards
2021 in the category of “Company of the year, Asia Pacific” for the second time. This prestigious award recognizes the tremendous
achievements made by the global generics and biosimilar industries in delivering high-quality medicines to those who need them
most.
Beximco Pharma received Special Appreciation as one of the Top Taxpayer Companies from the Large Taxpayer Unit of the National
Board of Revenue. It became one of the top income tax payers in the manufacturing sector category.
Accounting Policies and Estimates
Bangladesh has adopted International Financial Reporting Standards (IFRS)/International Accounting 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 the financial reporting framework and make estimates and provisions in preparing those
financial statements. The Company’s accounting policies remain consistent with those of the previous year and there has been no
changes in the accounting policies that could materially impact the financial statements. The accounting estimates and provisions
are based on prudent judgments.
Risks Related to the Financial Statements
The Company has a robust system of internal control and well-designed accounting reporting process. The Company’s 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.
72 | Management Discussion and Analysis | Annual Report 2020-21
Looking Forward
We started 2021-22 with a positive outlook amidst the uncertainties and challenges emanating from any new wave of the pandemic.
However, gaining from our experience over the last two years and relying on our strength of resilience, we remain confident to explore
the maximum business potentials in any challenging situation.
Acquisition of Sanofi Bangladesh is an important strategic step to reinforce our market position through diversified portfolio and
expanded market reach. This year, one of our key priorities would be to realign and restructure the business and operating model of
SBL and ensure its successful integration to build strong foundation for a sustainable growth of business.
Ensuring safety of our employees remains our top priority. We will take all possible measures to keep them safe. I am immensely
proud of our dedicated people who demonstrated exceptional resilience in the face of this global pandemic. It’s because of their
unwavering commitment and courage we could continue our operations and ensure uninterrupted supply of medicines to every
corner of the country even during lockdowns.
Throughout the pandemic, Beximco Pharma has stood by the healthcare professionals of the country. In addition to our various
initiatives for supporting them, we want to express our gratitude saying ‘Thank you’ to each and every frontline health worker who
puts their lives at stake in order to save countless lives.
My heartfelt gratitude to all our employees for their hard work and dedication in this extremely difficult time.
Finally, I would like to extend my sincere thanks to all our stakeholders for showing their confidence and trust on us.
Nazmul Hassan MP
Managing Director
Annual Report 2020-21 | Management Discussion and Analysis | 73
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 2021
along with the report of the auditors thereon.
General Economic Overview
With some ease of the pandemic following substantial vaccination progress in advanced countries and its rollout in other countries,
the global economy is gradually rebounding although the risk of another wave of the pandemic remains a concern. The world
economy, as per OECD, is projected to grow 5.7 percent in 2021 and 4.5 percent in 2022, as against a 3.5 percent contraction in the
pandemic hit 2020. The global trade and supply chain severely affected during the peak of the pandemic has improved showing the
signs of returning to normalcy.
Bangladesh detected its first case of Covid-19 in March 2020. Since then, responding to the varying severity of surge of the virus,
Government intermittently imposed lockdowns and other restrictive measures to contain its spread. Throughout the year, the industry
and business passed difficult time especially in the first and fourth quarter, when Bangladesh faced two surges of Covid-19 upsetting
the life and livelihood of the people. With the emergence of the delta variant, almost a quarter of FY 2020-21 was under lockdowns
and restrictions of varying degrees, adversely affecting the economic activities of the country. Alongside the vaccination program,
Government took up several fiscal and non-fiscal measures to support business and keep the economy afloat. It has so far announced
28 stimulus packages worth Taka 1.35 trillion for mitigating the adverse impact of the pandemic and to facilitate faster recovery
of the economy. Other supporting measures include relaxation of interest rates, relaxed repayment schedule and loan classification
rules, extended settlement time in foreign trade, duty and tax waivers for import and sale of all Covid-19 related medicines, supplies
and equipment.
Bangladesh economy relying on robust inflows of wage earner’s remittances and rebound of export, bounced back and grew by
5.47% during FY 2020-21, a strong turnaround from 3.51% of prior year. The inflation rate remained stable at around 5.6%. Low
import payment, higher foreign remittance helped reach the forex reserve at 46.39 billion and the exchange rate of Taka against its
intervening currency the USD, remained broadly stable throughout 2020-21. However, with the ease of pandemic and unwinding of
disrupted supply chain, import of raw materials and capital machinery significantly rose. The Inflow of wage earners’ remittance on
the other hand, in recent months has declined. These caused deprecation of Taka against US Dollar by around 1% during the first
quarter of the new fiscal year.
The economic outlook of Bangladesh in the prevailing global context appears encouraging with Government projecting a 7.2% growth
in 2021-22. The Word Bank and multilateral agencies however projects 6.4% to 6.8% growth for Bangladesh.
Review of Financial Performance
Impressive sales and Profit Growth
The Company despite a challenging market condition
prevailing throughout the fiscal period, achieved remarkable
progress in all parameters of financial performance. Our
consolidated sales registered a 15.2% increase to reach at
Taka 29,494 million from Taka 25,612 million of previous
year. Sales in the domestic market increased by 15.4%
while our export rose by 13.5% to Taka 3,124 million. The
operating profit rose by 18.6% to Taka 6,651 million, while
the pre-tax profit increased by 37.1% to Taka 6,378 million.
The net profit after tax reached to Taka 5,166 million with
remarkable 45.7% YoY growth. Earnings per share rose by
45.8% to Taka 11.49 from Taka 7.88 of prior year. Improved
sales mix and relatively stable exchange rate coupled with
leverage effect of higher sales volume has helped maintain
the gross margin at 47.2%, marginally higher over 46.5%
of last year. The operating expenses remained contained at
24.6% of sales.
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
74 | Report of the Directors to the Shareholders | Annual Report 2020-21
Sales and Profit Snapshot
15.2%
17.0%
18.6%
37.1%
45.7%
Sales Revenue
Gross Profit Operating Profit Pre-Tex Profit Net Profit after Tex
2019 - 2020
2020 - 21
Improved Operating Cash flow
Strong sales and profit growth enabled to generate a healthy cash flow. Our Net Cash from Operating Activities increased to Taka
6,023 million against Taka 5,542 million of prior year, registering an 8.7% YoY increase. The Company used cash of Taka 2,521 million
for acquisition of property, plant and equipment compared to TK 2,243 million of previous year. The Company also repaid long term
borrowing of Taka 505 million and short term borrowing of Taka 2,375 million during the year. These resulted a decline in Company’s
bank borrowings by Taka 2,873 million to Taka 7,631 million from Taka 10,504 million of prior year. Net Operating Cash Flows Per
Share (NOCFPS) however, slightly dropped to Taka 13.50 against Taka 13.67 of prior year due to increase in the number of shares
declared as stock dividend for the year 2019-20.
Subsidiary Companies
Nuvista Pharma Limited
Nuvista Pharma Limited (NPL)has almost doubled its revenue in a short span of three years since acquisition by Beximco Pharma.
Along with sales, the company made strong improvements in other areas of operating and financial performance, especially in
prescription share, product portfolio, operating and net profit.
In FY 2020-21, it registered 24.0% growth in sales to reach at Taka 2,572 million. Profit after tax stood at Tk. 300 million, a 22.9%
increase over the prior year. Because of strong cash flow resulting from impressive sales growth, NPL is now meeting its working
capital requirements from its own cash flow with insignificant or no use of bank credit facilities.
Total Sales
Profit Before Tax
Net Profit
Earnings Per Share
Net Operating Cash Flows Per Share
Dividend (Cash)
2020-21
2,572
421
300
25.51
34.76
40%
2019-20
2,074
334
244
20.75
28.23
35%
2018-19
1,669
108
90
7.62
19.87
20%
Taka in million
2017-18
1,320
(59)
(95)
-8.06
14.33
5%
Sanofi Bangladesh Limited
Beximco Pharma completed the acquisition of 54.6% stake in Sanofi Bangladesh Limited (SBL) at a consideration of approximately
Taka 469.62 crore (equivalent £39.35 million) pending final closing adjustments, if any. The transfer of ownership was completed
by end of business day of September 30, 2021 and SBL effectively became a subsidiary of Beximco Pharma from October 1, 2021.
Sanofi Bangladesh, therefore, has not been consolidated in the current reporting period. The acquisition of Sanofi Bangladesh has
been disclosed in the annual report as an event after reporting period.
Beximco Pharma API Limited
This company was formed with an intent to set up a facility at API industrial park being developed by the government of Bangladesh,
to manufacture Active Pharmaceutical Ingredients (APIs) for domestic and international market. However, the company is still in the
initial phase and has carried out no operational activities during the year.
Continuity of Other Income
The Company reports Cash Incentives on Exports on submission of claims fulfilling the eligibility criteria. Claims for export incentives
are to be made after receipts of the export proceeds. Companies are allowed six-month time from the date of receipts of the export
proceeds to claim incentives. Income from this source for the period 2020-21 was Taka 310 million as against Taka 140 million of
2019-20. The Cash Incentive on Export recorded a significant increase over the comparable prior period because of lower submission
of application in the initial period of the introduction of the incentive scheme in 2019-20 fiscal year. Moreover, Company’s export is
mostly on deferred payment basis. As such, application against the export of a particular year may be stretched over the next financial
year. Income from cash incentive is dependent on the value of export made and the amount of proceeds remitted in a particular year.
The Company earned a net amount of Taka 542 million as Vaccine Distribution Fee under a tripartite agreement with the Government
of Bangladesh (GOB) and the Serum Institute of India Pvt. Ltd (‘SII’) for the supply of Oxford University /AstraZeneca SARS-CoV-2
AZD 1222 Vaccine in Bangladesh. The Company delivered seven million vaccines out of contracted thirty million doses during the
reported period. Any future earning from this source is dependent on the delivery of the committed quantity of the vaccine under the
agreement.
Annual Report 2020-21 | Report of the Directors to the Shareholders | 75
We have royalty income from our subsidiary Nuvista Pharma and overseas partners for the sale of few selected products. The royalty
earned from Nuvista Pharma has been eliminated as inter-company transactions in the consolidated financials. Royalty income linked
to the volume of sale of the particular products.
Forfeited PF Refund of Taka 11 million included in other income relates to the refund made by the Provident Fund Trusts as per
directive of Financial Reporting Council (FRC) vide their notification No 179/FRC/FRM/Notification/2020/2 dated July 7, 2020. This
represents the accumulated balance of the forfeited amount since 2015 and future income from this source will either be insignificant
or none. The other items under the head “Other Income” are either insignificant or inherent to normal business operations.
Profit and its Appropriation
Directors propose the appropriation of profit as follows:
Particulars
Net Profit After Tax
Adjustment for depreciation of Revalued Assets
Profit Brought Forward
Profit Available for Appropriation
Proposed Dividend:
Cash Dividend
Stock Dividend
Profit Carried Forward
Amount in Taka’000
BPL (Stand-alone)
2020-21
4,943,488
7,180
18,906,148
23,856,816
(1,561,392)
----
22,295,424
2019-20
3,363,400
8,114
16,548,524
19,920,038
(608,334)
(405,556)
18,906,148
Dividend
The Board of Directors recommends 35% Cash Dividend i.e. Tk. 3.50 per share for the year ended 30 June 2021 for onward approval
at the Annual General Meeting. The Company has declared no interim dividend during the year.
Risks and Concerns
Every business operates in a volatile, uncertain, complex and ambiguous environment. Organizations thus are exposed to risks that
might arise from internal or external sources. Recent pandemic has shattered global supply system and disrupted trade, communication
and usual movements of people. Businesses, irrespective of nature, size and geographic location, have been adversely affected at
varying degrees. The unpredicted and uncontrollable challenges of this type have brought the necessity of robust risk management
into forefront.
Beximco Pharma, like any other business or industry, is operating in a dynamic and competitive market and thus exposed to risks
that may affect its business. The senior management of the Company oversees risk management processes on a continual basis.
Management of risks involves identification and assessment of risks; setting standards on company’s risk appetite; and designing,
implementing and monitoring policies to address various financial and non-financial risks. While the Company has robust policies
and procedures in place at functional, operational and strategy level to mitigate risks from internal and external sources, there are
uncertainties beyond control of the Company which might adversely affect its business and deter achievement of its targets.
Economic Risks
Any decline in economic growth could, as for any other industry, impact the future demand for pharmaceutical products. Thus
company might not meet its expected growth in revenue. Bangladesh, however, maintained steady economic progress over the years
with substantial uplift in all socio-economic indices and it is anticipated that trend will continue in the near future.
Market Risk
The Company has borrowings from local and overseas sources. Interest rates are variable and any significant rise in interest rates
might impact the financial results of the Company. Foreign borrowings, in addition to interest rate are subject to foreign exchange
risk. Company however, has strong revenue and cash flow stream to meet its financial obligations. Domestic interest rate remains
76 | Report of the Directors to the Shareholders | Annual Report 2020-21
more or less stable due to intervention by government. Moreover, government has capped the maximum lending interest rate at 9%,
which mitigates the risk of any abrupt increase in the rate of interest. Additionally, the interest rate of major foreign loan is based on
Euribor which is currently negative. The Company has growing export proceeds that give a natural hedge to partially neutralize the
adverse impact of the exchange rate fluctuations. Government intervenes in the market through its monetary and fiscal measures to
keep the forex market stable, which is another protection for the Company.
Interest Rate and Foreign Exchange Risk
Other market risks are interest rate risk and foreign exchange risk. The Company has borrowings from local sources and abroad.
Local borrowings are on variable interest rate. Rise of interest rates will impact the financial results of the Company. However,
considering the finance expenses in contrast with total revenue and expense of the Company, the impact is not that much. Moreover,
this risk is greatly mitigated due to intervention of the Govt by capping the maximum interest rate which is currently 9%. Foreign
borrowings are subject to both interest rate risks and foreign exchange risks. Rise of interest rates and appreciation of currency have
adverse impact on company’s profitability. The Company’s main foreign loan is based on Euribor which is negative thus not to impact
on borrowing costs. Exchange rate between USD and BDT remained broadly stable during the year under review. Moreover, the
company, having export proceeds, has a natural hedging for a certain portion of foreign exchange transaction especially repayment
against foreign loan and other overseas expenses. Government intervenes in the market through its monetary and fiscal measures
to keep the market stable which is another projection for the Company. Due to absence of derivatives market in the country, the
Company remain exposed to some foreign exchange risks mainly for its payment against import. However, impact shall not be severe
considering the low volume of open foreign exchange exposure compared to total operations of the Company.
Input price and Supply Chain Risk
Pharmaceutical companies in Bangladesh are largely dependent on imported APIs. Any substantial increase in prices of materials
and disruptions in the supply chain may affect the cost of production. Because of regulatory control and sensitivity to public health,
prices of pharmaceutical products can’t be promptly adjusted responding to the rise in cost and thus the attainment of the profit
target might be hindered. To mitigate the risk, Beximco Pharma imports raw materials from multiple sources, both local and
international, at competitive prices. The Company is not reliant on any single supplier for its materials and this therefore, reduces
the individual supplier’s influence on procurement prices. Most of the suppliers have their local agent and the Company maintains
close relationship with them. Moreover, BPL manufactures few of the APIs and 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 increased costs.
Product Liability Risk
Pharmaceutical products are usually exposed to high product quality risk. Each product is required to be manufactured and marketed
through a stringent compliance procedure. Manufacturing of products requires the flexibility to accommodate the changing local
and global regulatory needs. Any deviation from the standard may result in serious market reputational damages and might also
create a regulatory barrier. Over the years, Beximco Pharma has been recognized locally and globally for its quality products and
manufacturing excellence. Our manufacturing facilities are certified by leading global regulatory agencies. As such, Beximco Pharma
is less exposed to product quality risk. Additionally, the Company has taken adequate insurance cover to minimize the product liability
risk.
Technology Risk
The pharmaceutical industry is a technology and research driven industry. Failure to adapt to innovation and technological advancement
might affect Company’s future growth. Beximco Pharma continues to invest in state-of-the-art manufacturing technologies, R&D
and laboratory infrastructure to strengthen its manufacturing and innovation capabilities. It maintains close ties with leading global
companies and organizations to remain updated on the changes taking place in the industry.
Regulatory Risk
Uncertainties emanating from significant changes in the pharmaceutical policy, regulations, tax regime or other business laws
having a bearing on the pharmaceutical sector may also threaten the growth potential of the business. Government policy for the
Pharmaceutical sector remains supportive of its growth. Existing fiscal and non-fiscal incentives enjoyed by the industry are expected
to continue in the future. No significant changes in policy, regulation or tax regime that can adversely affect the business are foreseen.
Annual Report 2020-21 | Report of the Directors to the Shareholders | 77
Retirement and Re-election of Directors
Mr. Iqbal Ahmed and Mr. O. K. Chowdhury, 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.
Ms. Reem H. Shamsuddoha and Ms. Quamrun Naher Ahmed have been appointed as Directors of the Company on December 19,
2020. As per Article 131 of the Articles of Association of the Company they retire and being eligible, offer themselves for re-election.
Detailed bio-data of the Directors are available in the Directors’ Profile section of this Annual Report.
Appointment of Independent Director
In compliance to the provisions of Corporate Governance Code issued by Bangladesh Securities and Exchange Commission (BSEC)
dated June 03, 2018, Dr. Md. Ibraheem Hosein Khan was appointed as Independent Director of the Company on January 17, 2021
for a period of 3 years, subject to the approval of the Shareholders in the Annual General Meeting. Proposal is placed for the approval
of his appointment.
Detailed bio-data of Mr. Khan is available in the Directors’ Profile section of this Annual Report.
Auditors
The existing Auditors, M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, BirUttam C. R. Datta Road, Dhaka-1205 who
were appointed as Auditors of the Company in the 44th Annual General Meeting of the Company has carried out the audit for the
year ended 30 June 2021. M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, BirUttam 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 2021-22.
The Board after due consideration recommends for the reappointment of M. J. Abedin & Co., Chartered Accountants as auditors for
the year 2021-22.
Related Party Disclosure
The Company has a number of transactions between its subsidiaries and other related parties. The transactions are carried out on an
arm’s length basis. The Audit Committee periodically reviews these transactions. The full disclosure of all related party transactions
is 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 a defined benefit Plan (Gratuity) for employees irrespective of their positions. Company has a rigorous performance
evaluation and appraisal system linked to KPIs. Employee salary and allowance 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 an 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, 2020. 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.
78 | Report of the Directors to the Shareholders | Annual Report 2020-21
• 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.
•
•
• There is no significant doubt about the ability of the Company to continue as a going concern.
Internal Control System is sound in design and has been effectively implemented and monitored.
Interests of the minority shareholders have been duly protected.
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 2020-21 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 of the Directors
Representation in the Board
Attendance in Board Meeting
Mr. A S F Rahman
Mr. Salman F Rahman MP
Mr. Nazmul Hassan MP
Mr. Iqbal Ahmed
Mr. O K Chowdhury
Mr. A B Siddiqur Rahman
Ms. Reem H. Shamsuddoha
Ms. Quamrun Naher Ahmed
Mr. Shah Monjurul Hoque
Mr. Mamtaz Uddin Ahmed
Dr. Md. Ibraheem Hosein Khan
Chairman
Vice Chairman
Managing Director
Director
Director
Director
Director
Director
Independent Director (outgoing)
Independent Director
Independent Director
6
12
12
10
12
12
7
7
6
12
3
The Pattern of Shareholding
The Shareholding of Directors, CEO, CFO, Company Secretary, Key Executives and their spouses and children are provided in
Annexure- 3.
Corporate Governance Compliance Report
In accordance with the 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
Annual Report 2020-21 | Report of the Directors to the Shareholders | 79
Annexure-1
The Board of Directors
Beximco Pharmaceuticals Limited
Subject: Declaration on Financial Statements for the year ended on 30 June 2021
Dear Sirs,
Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2016-158/207/Admin/80,
Dated June 03, 2018 & under section 2CC of the Securities and Exchange Ordinance 1969, we do hereby declare that:
1. The Financial Statements of Beximco Pharmaceuticals Limited for the year ended on 30 June 2021 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in the
Bangladesh and any departure there from has been adequately disclosed;
2. The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order for the
financial statements to reveal a true and fair view;
3. The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in its
financial statements;
4. To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance of
accounting records;
5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and procedures
of the Company were consistently followed; and
6. The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and there
exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern.
In this regard, we also certify that:
We have reviewed the financial statements for the year ended on 30 June 2021 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.
There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are fraudulent,
illegal or in violation of the code of conduct for the company’s Board of Directors or its members.
Sincerely yours,
Nazmul Hassan MP
Nazmul Hassan MP
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
80 | Report of the Directors to the Shareholders | Annual Report 2020-21
Annexure- 2
Key Operating and Financial Data
30 June 2021
30 June 2020
30 June 2019
30 June 2018
30 June 2017
30-Jun-16
15,000,000
15,000,000
15,000,000
9,100,000
9,100,000
9,100,000
4,461,121
4,055,564
4,055,564
4,055,564
4,055,564
3,862,442
37,364,865
32,797,450
29,864,324
27,351,837
25,072,426
23,059,412
47,887,415
45,615,625
43,454,027
39,081,675
31,692,789
28,756,326
Taka in Thousand
Authorized Capital
Paid up Capital
Shareholders’ Equity
Fixed Assets (Gross)
Net Asset Value (NAV) Per Share -Taka
Market Price Per Share
Price Earning Ratio (Time)
83.01
177.3
15.43
80.12
69.20
8.8
72.96
83.50
11.16
66.78
93.90
15.02
61.82
113.00
20.58
59.7
83.5
17.47
Number of Shareholders
55,248
56,101
56,177
57,982
62,741
67,679
Foreign Investors
ICB including ICB Investors Account
Sponsors, General Public & Other
Institutions
71
871
71
882
77
881
90
879
92
874
83
878
54,306
55,148
55,219
57,013
61,775
66,718
Number of employees
5104
4,755
4,489
4,256
3,833
3,515
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.
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
Taka in Thousand
29,493,574
25,611,947
22,816,630
17,716,717
15,508,777
13,785,325
3,124,001
2,751,790
2,502,633
1,476,978
1,078,472
861,653
13,923,502
11,899,100
10,620,343
8,285,979
7,184,882
6,408,857
6,377,548
4,653,440
3,946,065
3,361,334
2,891,482
2,564,267
5,165,750
3,544,483
3,040,403
2,532,654
2,226,695
1,938,894
11.49
13.50
22
35%
-
7.88
13.67
26
15%
10%
7.48
7.30
20
6.25
4.49
16
5.49
6.49
15
4.78
8.21
21
15%
-
12.50%
12.50%
-
-
15%*
5%*
Annual Report 2020-21 | Report of the Directors to the Shareholders | 81
Graphical View of Selected Growth Indicators
SALES/TURNOVER
EXPORT SALES
Taka in million
4
9
4
,
9
2
2
1
6
,
5
2
7
1
8
,
2
2
7
1
7
,
7
1
9
0
5
,
5
1
5
8
7
,
3
1
4
2
1
,
3
2
5
7
,
2
3
0
5
,
2
7
7
4
,
1
8
7
0
,
1
2
6
8
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
NET PROFIT
6
6
1
5
,
4
4
5
,
3
0
4
0
,
3
3
3
5
,
2
7
2
2
2
,
9
3
9
1
,
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
EPS (TAKA)
SHAREHOLDER’S EQUITY
9
4
.
1
1
8
8
.
7
8
4
.
7
5
2
.
6
9
4
.
5
8
7
.
4
5
6
3
,
7
3
7
9
7
,
2
3
4
6
8
,
9
2
2
5
3
,
7
2
2
7
0
,
5
2
9
5
0
,
3
2
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
82 | Report of the Directors to the Shareholders | Annual Report 2020-21
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.
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
Annexure-3
Shares held
24,897,715
3,189,926
10,345,757
965,206
1,308,505
9,058,888
9,080,095
14,657
-
-
-
-
-
Annual Report 2020-21 | Report of the Directors to the Shareholders | 83
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
Annexure-4
(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)
1(3)(b)(i)
1(3)(b)(ii)
1(3)(b)(iii)
1(3)(b)(iv)
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
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
84 | Report of the Directors to the Shareholders | Annual Report 2020-21
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
1(3)(b)(v)
Practicing advocate at least in the High Court Division of Bangladesh Supreme Court or a
CA/CMA/CFA/CCA/CPA or CS
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)
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)
1(5)(xiv)
1(5)(xv)
1(5)(xvi)
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
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
√
√
√
√
√
√
√
√
√
√
√
N/A
N/A
N/A
√
√
√
√
√
√
√
√
√
√
N/A
N/A
√
√
√
√
√
Company operates
in a single product
segment.
Annexure- 2
Annexure-3
Annual Report 2020-21 | Report of the Directors to the Shareholders | 85
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
Annexure-2
Annexure- 1
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)
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.
1(6)
1(6)
1(7)
1(7)(a)
1(7)(b)
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)
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
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 subsidi-
ary 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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
86 | Report of the Directors to the Shareholders | Annual Report 2020-21
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
3(3)(a)
The MD or CEO and CFO shall certify to the Board that they have reviewed financial
statements for the year
3(3)(a)(i)
Financial statements do not contain anything which is materially untrue or misleading
3(3)(a)(ii)
Financial statements present a true and fair view of the company’s affairs and are in
compliance with existing accounting standards and applicable laws
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)
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)
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
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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
-
√
Annexure-1
-
No such IPO/RPO/
Right Issue occurred
during FY 2020-21.
Annual Report 2020-21 | Report of the Directors to the Shareholders | 87
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
-
-
-
-
-
-
-
-
Audit Committee
found no such issue
or activity.
No such instance
occurred during the
period.
No such instance
occurred during the
period.
No such instance
happened during the
period.
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)
6(2)(a)
6(2)(b)
6(2)(c)
6(2)(d)
6(2)(e)
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
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
6(2)(f)
The Chairperson of the Committee may appoint external expert for advice or suggestion
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)
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 Inde-
pendent 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
-
-
-
-
-
√
√
√
√
√
√
√
√
-
-
√
√
√
√
√
√
√
-
√
√
√
√
√
88 | Report of the Directors to the Shareholders | Annual Report 2020-21
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
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)
6(5)(c)
7
7(1)(i)
7(1)(ii)
7(1)(iii)
7(1)(iv)
7(1)(v)
7(1)(vi)
7(1)(vii)
7(1)(viii)
7(1)(ix)
7(2)
7(3)
8
8(1)
8(2)
8(3)
9
9(1)
9(2)
9(3)
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
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
Non-engagement in services determined by Audit Committee
Not involved in audit or certification services on compliance of corporate governance
Not involved in any other service that creates conflict of interest
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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Annual Report 2020-21 | Report of the Directors to the Shareholders | 89
Annexure-5
90 | Report of the Directors to the Shareholders | Annual Report 2020-21
Report of the Audit Committee
I am pleased to present the report of the Audit Committee of Beximco Pharmaceuticals Limited in compliance to the provisions of the
Corporate Governance Codes issued by Bangladesh Securities and Exchange Commission (BSEC). A competent audit committee is
important to insure accounting and reporting transparency and promote good governance. The Audit Committee of Beximco Pharma
as a sub-committee of the Board plays a vital role in effective discharge of the Board’s oversight responsibilities. The Committee
has distinct Terms of Reference (ToR) developed conforming to the Code of Corporate Governance which includes but not confined
to overseeing the financial reporting process, evaluating internal control system, reviewing significant related party transactions,
assessing potential conflict of interests, and reviewing the financial statements of the Company and its subsidiaries. This report gives
a brief on the activities performed by the Audit Committee throughout the year.
Changes in the Committee
Mr. Shah Monjurul Hoque, an Independent Director of the Board and a member of the Audit Committee retired on completion of his
tenure of office for two consecutive terms of three years each. Mr. Hoque was an important member of the committee and made
appreciable contribution during his tenure. I express my heartfelt thanks for his valuable service.
Ms. Reem H. Shamsuddoha a Director of the Board was nominated as a member of the Audit Committee on January 18, 2021 in
replacement of Mr. Hoque. Following the changes the Committee has been reconstituted as below:
Name
Representation in the Board
Position in the Committee
Prof. Mamtaz Uddin Ahmed
Independent Director
Mr. Osman Kaiser Chowdhury, FCA
Ms. Reem H. Shamsuddoha
Director
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 during the period under review. Records of attendance in the meetings
are as below:
Name
Representation in the Board
Position in the Committee
Attendance in Meeting
Prof. Mamtaz Uddin Ahmed
Mr. Shah Monjurul Hoque
Independent Director
Independent Director
Chairman
Member (outgoing)
Mr. Osman Kaiser Chowdhury, FCA
Ms. Reem H. Shamsuddoha
Director
Director
Member
Member
Mr. Mohammad Asad Ullah, FCS
* Ms. Reem H. Shamsuddoha replaced Mr. Shah Monjurul Hoque who retired on 17 January 2021
Company Secretary
Secretary
4/4
2/4
4/4
2/4
4/4
Review of Financial Statements
The Audit Committee reviewed the annual audited financial statements of the Company for the year 2020-21 in its meeting held on
October 19, 2021. The annual financial reports of the subsidiary companies, namely Nuvista Pharma Limited and Beximco Pharma API
Limited,were also placed for review and approval of the Committee during the meeting. Mr. Mohammad Ali Nawaz, the Chief Financial
Officer (CFO) of the Company presented the annual accounts along with the independent auditor’s report. The Committee had detailed
discussion with the representative of the management on different aspects of the financial statements particularly on compliance
with IFRS/IAS, adequacy of disclosures made, consistency of the accounting policies applied and prudence of the estimates and
judgements made in preparation of the financial statements.
The Committee carefully examined the related party transactions carried out among different associated companies, including the
subsidiaries. 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
Annual Report 2020-21 | Report of the Audit Committee | 91
Disclosures’. The Committee evaluated the report of the independent auditor on the annual financial statements and found no
material audit observation.
Besides the review of annual financials, the Committee met on three other occasions to review the interim un-audited financial
statements of the Company and its subsidiaries. They carried out in-depth review of each of the quarterly financial statements with
due care to ensure that the financial statements give a true and fair view of the state of affairs of the company and are free from
any material error. During the evaluation process, relevant queries were raised and explanations were sought from the management
on accuracy of the reported numbers and adequacy of the information disclosed in the financial statements. The Committee, where
applicable, gave necessary feedback and guidance. In each case Committee being satisfied authorized for onward submission of the
financial reports for the approval of Board.
Other Reviews and Activities
The Committee assessed the independence, objectivity and expertise of the independent auditors engaged to carry out the audit
for the year ended 30 June 2021 and found their performance meeting the standard. Based on the evaluation, the Committee
recommended for the re-appointment of the existing auditor for the year 2021-22.
The Committee appraised the financial reporting process and the adequacy of the internal control system of the Company and found
them satisfactory. They noted that internal audit team enjoy full, free and unrestricted access to all activities, records, property. They
also noted that internal audit and compliance team has been further strengthened with professionally qualified personnel.
The Committee noted no material deviations or non-compliance or adverse audit finding that calls for board or shareholders’ attention
during the year under review.
Mamtaz Uddin Ahmed
Chairman
Audit Committee
92 | Report of the Audit Committee | Annual Report 2020-21
Activities and Other Details of Nomination
and Remuneration Committee (NRC)
The Nomination and Remuneration Committee (NRC) is one of the two sub-committees of the Board formed in Compliance to the
Corporate Governance Code issued by Bangladesh Securities and Exchange Commission.
Composition of the NRC
There have been some changes in the Committee during the year under review. Mr. Shah Monjurul Hoque, an Independent Director
of the Board and the Chairman of the NRC retired from the Committee and the Board on completion of his tenure of office for two
consecutive terms. Dr. Md. Ibraheem Hosein Khan an Independent Director of the Board has replaced Mr. Hoque. The Board has
appointed Dr. Khan as the Chairman of the Committee. The Committee comprises as follows:
Name
Representation in the Board
Position in the Committee
Dr. Md. Ibraheem Hosein Khan
Independent Director
Mr. Iqbal Ahmed
Mr. Osman Kaiser Chowdhury, FCA
Director
Director
Mr. Mohammad Asad Ullah, FCS
Company Secretary
Chairman
Member
Member
Secretary
Summary of Activities of NRC
The Nomination and Remuneration Committee (NRC) had one meeting during the year. Dr. Md. Ibrahim Hosein Khan, Chairman of the
NRC, presided over the meeting. All the members, except Mr Iqbal Ahmed, attended the meeting. Mr. Md. Ali Nawaz, Chief Financial
Officer, Mr. Jamal Ahmed Choudhury, Director (F&A), and Mr. M A Arshad Bhuiyan, General Manager, HRM attended the meeting as
representatives of the management on invitation.
The Committee dealt with two agendas namely, Employee Recruitment and Selection Process of the Company; and the Policy on
Composition of Board and Appointment of Directors. The proceedings of the meeting were appropriately recorded. No member of the
Committee received any remuneration other than the meeting attendance fee.
Review of Employee Recruitment and Selection Process of the Company
Head of HRM presented the process of recruiting and selecting employees for different positions and grades of the Company before
the members of the Committee. The presentation outlined the method of assessing the HR needs; determining the qualification
criteria; and the steps adopted to searching, screening, evaluating and recruiting appropriate candidate for positions at different tiers
of the organization. The Company adopts objective, fair and unbiased evaluation criteria in the selection process. Recruitments are
principally based on education, experience and defined skills for any particular position.
The Committee conducted in-depth review of the existing policy and concluded that the current recruitment and selection process
of the Company is well designed in terms of assessing the need, interacting with the potential candidates and hiring talented human
resource for the Company.
Review of Policy on Composition of Board and Appointment of Directors
The Committee thoroughly reviewed the Company’s policy on Composition of Board and Appointment of Directors. Representative
of management presented in detail the composition of the Board, policy on board diversity, evaluation criteria of the board members
and their appointment process. The Committee noted that the policy is well defined and appropriately accommodates the statutory
and regulatory requirements. They made few minor suggestions which were duly accommodated. In this context, the Committee
evaluated the current composition of the Board and observed that the Board is well composed with adequate diversity in terms of
age, experience, gender, etc. The current Board also adequately fulfills the condition of a minimum number of Independent Directors
statutorily required to be included in the Board.
Annual Report 2020-21 | Activities and Other Details of Nomination and Remuneration Committee (NRC) | 93
Nomination and Remuneration Policy
The Company has a written policy on nomination and appointment of directors in the Board. The policy sets out the detail qualification
and other eligibility norms for the members and the process of their nomination, which is rightly aligned with the Corporate Governance
Code of Bangladesh Securities and Exchange Commission.
While Directors, as per Bangladesh Companies Act, are to be elected by the shareholders in the annual general meeting, the Board
of Directors makes the recommendation for appointment or re-appointment of Directors. NRC plays an important role in assisting the
Board to identify persons fitting the qualifying criteria as a Director. The Person (s) identified for the proposed appointment as director
is evaluated in terms of the requirements laid down in prevailing legislation; specific regulations applicable to the public listed
companies both in Bangladesh and the United Kingdom; the Bylaws and the policies of the Company. NRC makes an independent
evaluation of his/her experience, capability and competence to make a meaningful contribution as a Board member to achieve
Company’s mission and goals. Additionally, to comply with the regulations of the Alternative Investment Market (AIM) of London Stock
Exchange, a clearance from the Company’s Nominated Advisor (NOMAD) is required before the appointment of any director, including
the Independent Director. NOMAD conducts independent third party verification of the eligible candidates before their appointment
as Directors.
The Company shall appoint adequate number of directors, including independent directors, and shall endeavor to nominate or appoint
directors from diversified fields of experience and specialties. From the perspective of gender diversity, preference shall be given
to the female candidates where male and female are found equally qualified for the membership of the Board. The Company does
not make any discrimination in terms of religion, faith, color, gender or nationality while considering the appointment as a Director.
All the Directors of the Board except the Managing Director are non-executive. The Company pays no remuneration to them other
than the fees for attending the Board and other committee meetings.
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
a 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.
94 | Activities and Other Details of Nomination and Remuneration Committee (NRC) | Annual Report 2020-21
Investor Relations
Communication with Shareholders and Investors
Beximco Pharma recognizes the investors’ right to remain informed about the Company, its operating and financial results, and other
material information that are relevant to their investment decisions. The country’s legislation and regulations sets out the rights and
privileges of the shareholders and the nature, timing and means of communicating information to the shareholders and investors.
The Company without failure complies with all regulatory provisions and communicates information in effective and timely manner.
The Company regularly holds its Annual General Meeting as required by the Companies Act, 1994 to appraise the shareholders about
the overall affairs of the Company. The AGM deals with specific agenda to be approved by the Shareholders. Interested shareholders
may take part in the discussion and raise queries about the affairs of the Company. Extra-ordinary General Meeting (EGM) is also
held in cases that require calling of a meeting. The board members and senior management of the Company remain present in those
meetings to answer queries and address any concerns of the shareholders.
Considering pandemic, like prior year, this year’s AGM will also be held on virtual platform.
The Company updates the market with all price sensitive information as soon as it becomes available 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 senior management of the Company occasionally meets its overseas investors to update them about the business. The local and
overseas fund managers and analysts also hold pre-arranged meeting at home and abroad with our top management to know the
present and future potentials of the Company. During the year the meetings were held mostly online.
Beximco Pharma has a distinct Company Secretarial Department adequately manned with qualified professionals to carry out the
regulatory secretarial functions and to meet administrative enquiries from the shareholders and investors. There is also an investor
relation team within accounting and finance function to deal with queries and information requests from investors, regulators etc.
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.
Reporting to the Shareholders
Financial Reports and Reporting Calendar
The Company publishes three quarterly financial reports prepared in a condensed form. These reports are un-audited. The Company’s
Annual Audited Financial Accounts are however, audited by independent external auditors and prepared complying with international
accounting standards and other statutory requirements. Such Reports are available in the Company’s website.
Latest timing of release of the financial statements are:
November-15
Januray-31
April-30
October-31
Q1
Q2
Q3
First Quarter Report
Half Yearly Report
Third Quarter Report
Audited Financials
Reports
Annual Report 2020-21 | Investor Relations | 95
Website Communication:
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 investors’ relation segment of the website has been further reorganized for easy search of information and to make it
convenient to the users. In addition to accessing information through website, investors and other report users may contact the
Company for additional information. The contact details are available on the Company’s website.
Five Year Dividend History
Cash Dividend
35.0%
12.5% 12.5% 15.0% 15.0%
2016-17
2017-18
2018-19
2019-20*
2020-21
* In addition to Cash, 10% Stock Dividend was declared in 2019-20
96 | Investor Relations | Annual Report 2020-21
Stock Market Performance
Dhaka Stock Exchange (DSE)
Particulars
30 June 2021
30 June
2020
30 June
2019
30 June
2018
30 June
2017
Share Price- Dhaka
Share Price- AIM
BDT 177.3
BDT 69.2
BDT 83.5
BDT 93.9
BDT 113.0
GBP 0.860
GBP 0.355
GBP 0.389
GBP 0.510
GBP 0.605
Market Capitalization- Dhaka Price
BDT 79.1bn
BDT 28.1bn
BDT 33.9bn
BDT 38.1bn
BDT 45.8bn
EPS- Taka
P/E Ratio (Dhaka Price)
Dividend (Cash)
Stock Dividend
11.49
15.4
35% (Proposed)
--
7.88
8.8
15%
10%
7.48
11.2
15%
-
6.25
15.0
12.5%
-
5.49
20.6
12.5%
-
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
Annual Report 2020-21 | Investor Relations | 97
Snapshots of 44th Annual General Meeting (Held on virtual platform)
98 | Investor Relations | Annual Report 2020-21
Dividend Policy Statement
Introduction
Bangladesh Securities and Exchange Commission (BSEC) through a Directive, made it mandatory for a listed company to formulate its
Dividend Distribution Policy and disclose the policy in the company’s annual report and official website. In compliance to this directive,
Beximco Pharmaceuticals Limited (“Beximco Pharma” or the “Company”) publishes this statement as a guiding framework for the
shareholders with regards to the Company’s Dividend Policy.
This statement provides a brief outline of the legal and regulatory provisions relating to dividend, key issues in dividend considerations
and the procedure for the declaration, approval and payment of dividend.
Relevant Laws and Regulations
Different legal and regulatory provisions have bearings on dividend decisions of the Company. The paragraphs below provide a brief
overview of the provisions relating to dividend:
Companies Act
The Companies Act 1994, the primary legislation regulating the affairs of a company, gives power to the directors to recommend
the dividend to be declared by the company which is to be approved by the shareholders in the Annual General Meeting (AGM). The
shareholders however, cannot approve any dividend more than what has been recommended by the directors. It also authorizes the
directors to pay from time to time, interim dividends to the shareholders if so appears to be justified by the profits of the company. The
directors may, before recommending any dividend, set aside out of the profits of the company, such sums as they deem appropriate,
as reserve or reserves which shall at the discretion of the directors, be applied for meeting contingencies, or for equalizing dividends
or for any other purpose of the company appropriate for utilization of such profits or may employ such profits in the business of the
company or otherwise as they think fit.
The law further provides that dividends are to be paid out of profits of the year or any other undistributed profits.
Listing Regulations of Stock Exchanges
There has been a number of listing regulations that have direct or indirect impact on dividend decisions of the company. Shares of a
company is traded under different trading categories depending on payment or non-payment of dividend by a company. According to
the regulations, a company shall be traded in the “Z Category” (a category with a longer trading settlement time and other restrictive
conditions) if it fails to declare cash dividend for two consecutive years. Moreover, a company may among other reasons, be de-listed
from the stock exchange if it fails to pay cash/stock dividend for a consecutive period of five years. The listing regulations also require
a company to declare in its annual general meeting the reasons, if any for partial or non-distribution of profits as dividend and the
plan for utilization of the undistributed profits if there be any.
Income Tax Law
Bangladesh Income Tax law, provides for additional tax charges to a listed company that retains more than 70% of its net after-
tax profit earned in any year. According to the said provision if a company retains or transfers more than 70% of its after tax profit
to reserve or any other fund, an additional 10% tax shall be payable on such retained or transferred fund. Moreover, in order to
encourage cash dividend, the tax law requires that if in any income year, the stock dividend declared by a company exceeds the cash
dividend, an additional 10% tax shall be imposed on the whole amount of stock dividend declared or distributed.
Key Considerations in dividend decisions
The company shall endeavour to maintain a consistent dividend over the year with appropriate consideration of factors relevant to
such decisions. It is the Company’s practice to declare dividend on annual basis based on annual financial performance. However,
the Board may also declare interim dividend based on periodic financial results. Historically the Company declared dividend in either
cash or stock or in judicious combination of cash and stock. The company intends to pursue the same policy in future depending on
the operating and financial context prevailing at that time.
Multiple internal and external factors might affect Company’s dividend decisions. While recommending dividend the Board of directors
shall consider among others:
Annual Report 2020-21 | Dividend Policy Statement | 99
• Company’s current net earnings, accumulated distributable reserves/surplus and availability of free cash flow
• Potential growth opportunities and investment requirements; assessment of benefits of retention vs pay-out
• Legal and Regulatory compulsion and tax implication of retention and payout
• Any debt/loan covenants restricting dividend announcements
• Persuasion of a target capital structure
• Cost of external finance
• Policy on consistency of the dividend over reasonable and foreseeable future years
Additionally, the Board may consider other factors or circumstances to decide on distribution of dividend for a particular year.
Eligibility of shareholders for dividend
Dividend is declared on the face value of each Equity Share. Unless otherwise stated, all holders of Equity Share and GDR (Global
Depository Receipts) whose names appear on the registrar of the Company on the Record Date declared by the Company for
entitlement of dividend, are eligible to get the dividend.
Timing of Dividend Announcement and Payment
Annual dividend decision is taken in the Board meeting to be held within 120 days from the date of closing of the financial year. Such
decisions are based on the results of the audited financial statements. The dividend recommendations made by the directors are
notified to the shareholders through stock exchanges, website and public announcements.
Dividend recommended by the Directors are to be placed in the Annual General meeting of the Company for the Shareholders’
approval. Dividend are transferred to the respective shareholders’ account within 30 days from the date of its approval. Interim
Dividend if any declared by the Company, are paid within 30 days from the Record Date fixed by the Company for the entitlement of
such dividend.
Policy Review and Amendment
Apart from mandatory revision, modification or amendment as necessitated by the legal and regulatory requirements, the company
shall review this policy on periodic basis and make necessary revision or amendment to keep the policy relevant and up to date. The
Board of Directors of the company shall approve the revision and/or amendment as it deems fit.
Disclaimer
The above Policy Statement neither gives a guarantee of dividend to be declared by the Company nor does it constitute a commitment
for any future dividend and thus be read as a general guidance on different dividend related issues. The policy upholds the Board’s
absolute/complete liberty to recommend any dividend in deviation of the policy.
100 | Dividend Policy Statement | Annual Report 2020-21
Value Added Statement
For the Year Ended 30 June 2021
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
35.9
Duties & Taxes to Govt.
Exchequer
Taka in thousand
Taka
%
34,901,684
(16,537,596)
18,364,088
4,496,664
4,799,451
858,685
1,608,393
6,600,895
18,364,088
100
24.5
26.1
4.7
8.8
35.9
100
26.1
Salaries and Benefits to
Employees
24.5
Retained by the
Retaine
Compa
Company
8.8
Dividend to
Shareholders
4.7
Interest to
Lenders
Annual Report 2020-21 | Value Added Statement | 101
The combined force of our product development, manufacturing skills and also our marketing
expertise will yield definitive results not just for investors but also for patients in need.
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, 2021 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 21, 2021. The Financial Statements of Nuvista Pharma Limited was audited by A. Qasem & Co. Chartered Accountants,
who through their report dated October 18, 2021 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, 2021, 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 2020 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 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. 36,211,375,594 as at
June 30, 2021.
Our audit included the following procedure:
Expenditures are capitalized if they create new assets or
enhance the existing assets, and expensed if they relate to repair
or maintenance of the assets. Classification of the expenditures
involves judgment. The useful lives of PPE items are based on
management’s estimates regarding the period during which the
assets or its significant components will be used. The estimates
are based on historical experience and market practice and take
into consideration the physical condition of the assets.
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
• 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.
104 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
Risk
Our response to the risk
Valuation of Inventory
The inventory of Tk. 7,142,863,477 as at June 30, 2021 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. 36 of the Consolidated Financial Statements.
We focused on identification of related parties and disclosure of
related party transactions in accordance with relevant accounting
standards.
Our audit procedures amongst others included the following:
• Evaluated the design and tested the operating effectiveness
of controls over identification and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and tested
material accounts balances.
• Evaluated the disclosures in the Consolidated financial statements
in compliance with IAS 24.
Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the
consolidated financial statements and our 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 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.
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 105
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 2020 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 audit of the
consolidated 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.
106 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, The Securities and Exchange Rules 2020 and relevant notifications issued by Bangladesh Securities
and Exchange Commission, we also report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit and made due verification thereof;
b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination
of those books;
c) The Company’s Consolidated Statement of Financial Position (Balance sheet) and Consolidated Statement of Profit or Loss and Other
Comprehensive Income (Profit & Loss Account) dealt with by this report are in agreement with the books of accounts and;
d) The expenditures incurred and payment made were for the purpose of the Company’s business for the year.
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC :N/A
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 107
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Financial Position
As at June 30, 2021
Notes
June 30, 2021
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Right-of-use Assets
Intangible Assets
Goodwill
Other Investments
Other Non-current Assets
Current Assets
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances and Deposits
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 / Unclaimed Dividend
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, 2020
37,069,663,021
35,000,809,631
240,163,919
1,275,560,330
546,691,213
3,751,551
2,686,377
38,475,237,847
36,211,375,594
319,884,849
1,380,693,809
546,691,213
16,592,382
—
13,770,846,179
13,049,078,919
7,142,863,477
661,722,724
2,873,844,874
2,416,948,496
675,466,608
5,944,769,057
775,528,787
3,305,451,434
2,388,313,122
635,016,519
52,246,084,026
50,118,741,940
37,030,558,202
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,121,824,646
13,767,206
24,179,782,862
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
334,306,627
302,329,006
37,364,864,829
32,797,449,613
5,531,540,789
1,206,717,094
2,335,257,766
1,989,565,929
9,349,678,408
5,023,181,128
1,401,406,013
1,965,048,180
619,399,363
118,137,390
222,506,334
5,963,327,323
1,651,590,390
2,144,053,434
2,167,683,499
11,357,965,004
7,398,361,360
1,454,311,995
1,397,817,066
739,512,826
82,075,347
285,886,410
52,246,084,026
50,118,741,940
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
108 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2021
Notes
July 2020- June 2021
July 2019 - June 2020
Amount in Taka
Net Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profit Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profit After Tax
Profit/(Loss) Attributable to:
Owners of the Company
Non-Controlling Interest
Other Comprehensive Income/(Loss)
Total Comprehensive Income
Total Comprehensive Income Attributable to:
Owners of the Company
Non-Controlling Interest
22
23
26
27
28
29
30
31
29,493,573,869
(15,570,071,581)
13,923,502,288
(7,272,794,940)
(896,648,965)
(6,376,145,975)
6,650,707,348
908,275,284
(858,685,146)
6,700,297,486
(322,749,293)
6,377,548,193
(1,211,798,461)
(1,386,678,310)
174,879,849
5,165,749,732
5,127,693,711
38,056,021
5,165,749,732
12,840,831
5,178,590,563
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
5,140,534,542
38,056,021
5,178,590,563
3,513,109,473
29,795,800
3,542,905,273
Earnings Per Share (EPS)/ Restated EPS
32
11.49
7.88
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 109
—
—
—
—
—
—
—
—
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Changes in Equity
For the Year Ended June 30, 2021
As at June 30, 2021
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, 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
Total Comprehensive Income:
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Stock Dovidend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
—
—
—
405,556,440
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5,127,693,711
5,127,693,711
38,056,021
5,165,749,732
—
12,840,831
—
12,840,831
—
12,840,831
-—
—
— (608,334,668)
(608,334,668)
(6,078,400)
(614,413,068)
—
(7,180,526)
—
3,237,721
—
—
— (405,556,440)
7,180,526
—
—
—
3,237,721
—
—
—
—
—
3,237,721
Balance as on June 30, 2021
4,461,120,890
5,269,474,690
1,689,636,958 294,950,950
1,121,824,646
13,767,206
24,179,782,862
37,030,558,202 334,306,627 37,364,864,829
Net Asset Value (NAV) Per Share (Note-33)
Tk.
83.01
As at 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
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 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-33)
Tk.
80.12
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
110 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Cash Flows
For the Year ended June 30, 2021
Notes
July 2020-June 2021
July 2019-June 2020
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
35
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment
Intangible Assets
Disposal of Property, Plant and Equipment
Dividend Received
Decrease in Short Term Investment
Net Cash Used in Investing Activities
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings
Net Increase/(Decrease) in Short Term Borrowings
Dividend Paid
Net Cash (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 Flows Per Share
35
12
34
30,833,168,257
(22,500,770,314)
8,332,397,943
25,934,454,695
(18,467,458,543)
7,466,996,152
(861,452,888)
2,377,286
(1,450,058,386)
6,023,263,955
(1,012,519,091)
20,409,291
(932,399,131)
5,542,487,221
(2,520,682,923)
(37,734,793)
32,831,171
940,700
—
(2,524,645,845)
(504,636,764)
(2,375,180,232)
(578,351,025)
(3,458,168,021)
40,450,089
635,016,519
—
675,466,608
(2,243,555,782)
(31,745,002)
3,646,251
1,427,930
323,364,536
(1,946,862,067)
(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
13.50
13.67
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 111
Beximco Pharmaceuticals Limited and its Subsidiaries
Notes to the Financial Statements
As at and for the year ended June 30, 2021
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
Nuvista Pharma, formerly Organon (Bangladesh) Ltd., was a subsidiary of Netherlands based Organon International. The Company has
been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. In the post-independent Bangladesh, it
was incorporated as Organon (Bangladesh) Limited under Bangladesh Companies Act 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 2018, Beximco Pharmaceuticals Limited acquired
majority shareholdings in Nuvista Pharma 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 (excepting 10 shares). 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,
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
2020, 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.
112 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
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 01,2020 to June 30,2021.
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 3,900,000 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 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, 2021. 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. 29,517,257 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.
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 113
Amount in Taka
4. Property Plant and Equipment
As on June 30, 2021
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, 2020
Additions
Transferred in & Capitalized
Transferred from Right-of-use Assets
Disposal during the Year
4,067,829,596
—
—
—
—
7,822,270,536
8,243,322
298,207,642
—
—
15,766,994,486
153,224,100
965,316,704
—
(38,321,632)
330,453,956
21,758,200
1,558,986
—
(896,228)
827,287,026
—
—
4,275,000
(22,436,699)
616,852,214
36,310,323
2,848,259
—
(2,195,320)
29,431,687,814
219,535,945
1,267,931,591
4,275,000
(63,849,879)
394,467,696
130,204,714
—
(4,275,000)
—
29,826,155,510
349,740,659
1,267,931,591
—
(63,849,879)
Cost as on June 30, 2021
4,067,829,596
8,128,721,500 16,847,213,658
352,874,914
809,125,327
653,815,476
30,859,580,471
520,397,410
31,379,977,881
Accumulated Depreciation
As on July 01, 2020
Depreciation Charged
Fair Value Depreciation
Transferred from Right-of-use Assets
Adjustment for Assets disposed off
—
—
—
—
2,180,089,177
188,605,759
2,363,364
—
—
6,847,744,824
667,088,924
9,652,060
—
(17,098,214)
159,947,178
17,065,904
—
—
(264,188)
613,234,361
52,082,266
—
1,211,250
(15,567,741)
419,332,553
32,205,427
—
—
(2,050,991)
10,220,348,093
957,048,280
12,015,424
1,211,250
(34,981,134)
154,303,777
47,420,034
—
(1,211,250)
—
10,374,651,870
1,004,468,314
12,015,424
—
(34,981,134)
Accumulated Depreciation as on June 30, 2021
—
2,371,058,300
7,507,387,594
176,748,894
650,960,136
449,486,989 11,155,641,913
200,512,561
11,356,154,474
Net Book Value June 30, 2021
4,067,829,596
5,757,663,200
9,339,826,064
176,126,020
158,165,191
204,328,487
19,703,938,558
319,884,849
20,023,823,407
Capital Work in Progress
16,507,437,036
— 16,507,437,036
Carrying Value as on June 30, 2021
Carrying Value as on June 30, 2020
36,211,375,594
319,884,849
36,531,260,443
35,000,809,631
240,163,919
35,240,973,550
4 (a). Right-of-use Assets
At Cost
Accumulated Depreciation
5. Intangible Assets
Particulars
Cost
As on July 01, 2020
Addition / Transferred in & Capitalized
As on June 30, 2021
Amortization
As on July 01, 2020
Amortized During the year
As on June 30, 2021
Balance as on June 30, 2021
June 30, 2021
520,397,410
200,512,561
319,884,849
Amount in Taka
June 30, 2020
394,467,696
154,303,777
240,163,919
Product Development,
Licensing and Marketing Rights
ERP System
Trade Name
& Trade Marks
Total
1,349,055,417
165,102,296
1,514,157,713
169,745,334
22,864,119
192,609,453
54,000,000
14,870,674
68,870,674
1,572,800,751
202,837,089
1,775,637,840
276,210,051
78,461,481
354,671,532
16,710,370
16,710,362
33,420,732
4,320,000
2,531,767
6,851,767
297,240,421
97,703,610
394,944,031
1,159,486,181
159,188,721
62,018,907
1,380,693,809
Balance as on June 30, 2020
1,072,845,366
153,034,964
49,680,000
1,275,560,330
114 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
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 indication of
impairment of goodwill during the year.
Amount in Taka
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)
July 01, 2020
2,182,101
1,569,450
3,751,551
Unrealised
Gain/(Loss)
June 30, 2021
12,840,831
15,022,932
—
1,569,450
12,840,831
16,592,382
July 01,2020
June 30, 2021
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. as on June 30, 2021 was Tk. 89.50 (June 30, 2020: Tk.13.00). The fair value gain of Tk. 12,840,831 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
Amount in Taka
June 30, 2021
June 30, 2020
1,299,682,358
1,128,728,172
340,572,871
294,258,178
3,234,868,408
3,089,296,983
1,134,669,306
960,326,569
82,829,613
79,764,262
22,520,999
64,584,938
69,468,235
15,232,992
947,955,660
322,872,990
7,142,863,477
5,944,769,057
553,939,317
660,313,987
16,841,919
14,209,600
90,941,488
101,005,200
661,722,724
775,528,787
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 115
10. Accounts Receivable
This consists of :
Trade Receivable
Other Receivable
Amount in Taka
June 30, 2021
June 30, 2020
2,725,572,936
3,088,509,497
148,271,938
216,941,937
2,873,844,874
3,305,451,434
Accounts Receivable is reported net of provision for bad debts of Tk. 10,054,213. It includes an amount of Tk. 840,777,271, equivalent USD
9,985,468 (June 30, 2020: Tk. 817,658,851, USD 9,710,913) 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.1,401,534,613 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.1,695,026,636 on 31 May 2021.
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
2,658,627,358
3,036,824,038
66,945,578
51,685,459
2,725,572,936
3,088,509,497
249,538,566
281,675,299
488,144,349
441,074,569
25,777,861
167,929,080
2,650,135
6,636,489
83,541,576
10,821,850
128,076,779
209,723,000
295,859,623
264,086,628
20,831,185
35,585,120
186,444,554
161,306,524
34,886,833
29,898,335
148,885,137
154,443,129
460,856,879
442,658,728
36,030,920
155,346,536
58,207,996
112,828,599
40,724,614
70,790,725
2,416,948,496
2,388,313,122
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.
116 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
12. Cash and Cash Equivalents
This consists of as follows :
a. Cash in Hand (including Imprest Cash)
b. Cash at Bank :
(i) Current & FC Account
(ii) FDR Account
13. 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 Shares fully paid-up in cash
357,093,942 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
Amount in Taka
June 30, 2021
June 30, 2020
164,562,735
170,478,822
470,765,642
40,138,231
426,156,203
38,381,494
675,466,608
635,016,519
10,000,000,000
5,000,000,000
10,000,000,000
5,000,000,000
15,000,000,000 15,000,000,000
517,757,500
3,570,939,420
59,512,500
312,911,470
517,757,500
3,165,382,980
59,512,500
312,911,470
4,461,120,890
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.
100,037,989 Shares have been issued as underlying shares for the GDRs listed with AIM of London Stock Exchange.
C. Composition of Shareholding :
Sponsors/Directors:
A S F Rahman
Salman F Rahman
Other Directors and Associates
Other Shareholdings:
Foreign Portfolio Investors (DSE/CSE)
Holders of GDRs (excluding Board Director)
Institutions (ICB, ICB Investors’ Accounts & Others)
Individual Shareholders
Total
June 30, 2021
June 30, 2020
Number of Shares
% of Share
Capital
Number of Shares
% of Share
Capital
9,058,888
9,080,095
116,517,180
134,656,163
51,907,674
84,386,054
87,784,924
87,377,274
311,455,926
446,112,089
2.03
2.04
26.11
30.18
11.64
18.92
19.68
19.58
69.82
100.00
8,235,353
8,254,632
37,019,789
53,509,774
48,720,273
90,943,627
148,762,402
63,620,369
352,046,671
405,556,445
2.03
2.04
9.13
13.20
12.01
22.42
36.68
15.69
86.80
100.00
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 117
14. Non-Controlling Interest
Non-Controlling Interest (Opening )
Proportionate profit/loss (NPL)
Less Cash Dividend (NPL)
15. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Lease Liability
Dhaka Bank Limited
Lease Liability
This consists of as follows:
Within one year
Within two to five years
16. Liability for Gratuity and WPPF & Welfare Funds
Gratuity Payable
Workers Profit Participation and Welfare Fund
17. Short Term Borrowings
Janata Bank Limited
AB Bank Limited
First Security Islamic Bank Limited
Liability for UPAS Letter of Credit
Dhaka Bank Limited
18. Long Term Borrowings-Current Maturity
This consists of as follows:
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Lease Liability
AB Bank Limited
Dhaka Bank Limited
June 30, 2021
302,329,006
38,056,021
(6,078,400)
334,306,627
Amount in Taka
June 30, 2020
276,006,553
29,795,800
(3,473,347)
302,329,006
972,696,465
234,020,629
—
1,206,717,094
1,437,978,890
208,860,444
4,751,056
1,651,590,390
113,976,268
234,020,629
347,996,897
108,115,288
208,860,444
316,975,732
1,322,046,817
1,013,210,949
2,335,257,766
1,185,669,111
958,384,323
2,144,053,434
3,077,454,947
1,014,765,029
510,141,234
254,745,071
166,074,847
5,023,181,128
3,963,918,204
1,106,352,880
510,491,234
1,406,768,304
410,830,738
7,398,361,360
1,287,429,745
113,976,268
—
—
1,401,406,013
937,110,252
108,115,288
377,802,906
31,283,549
1,454,311,995
118 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
19. Creditors and Other Payables
Goods & Services
Provident Fund
Advance Against Sales
Others
20. 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)
June 30, 2021
769,204,884
800,770,806
298,396,187
96,676,303
Amount in Taka
June 30, 2020
575,012,150
726,878,755
12,393,114
83,533,047
1,965,048,180
1,397,817,066
296,650,070
322,749,293
619,399,363
503,704,448
235,808,378
739,512,826
21. Dividend Payable / Unclaimed Dividend
The Dividend Payable/Unclaimed dividend as on June 30, 2021 includes prior years’ dividend of Tk. 81,481,571 unclaimed to date. The unclaimed
dividend reported under Creditors and Other Payables in the prior period has been reclassified in this financial statement. Subsequent to the
Balance Sheet date an amount of Tk 64,297,249 has been paid to the Capital Market Stabilization Fund (CMSF) in compliance to BSEC directive
no. BSEC/CMRRCD/2021-386/03 dated January 14, 2021.
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 )
Purchase (Imported and processed products)
Finished Goods available
Cost of Physician Sample transferred to Sample Stock
Finished Goods (Closing)
July 2020- June 2021
July 2019- June 2020
26,331,187,249
3,124,001,260
38,385,360
29,493,573,869
22,808,998,367
2,751,790,244
51,159,044
25,611,947,655
294,258,178
12,108,082,703
3,958,532,311
16,360,873,192
(340,572,871)
16,020,300,321
1,128,728,172
9,718,528
17,158,747,021
(288,993,082)
(1,299,682,358)
455,530,899
10,054,371,739
3,623,979,789
14,133,882,427
(294,258,178)
13,839,624,249
1,255,181,983
—
15,094,806,232
(253,230,551)
(1,128,728,172)
15,570,071,581
13,712,847,509
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 119
24. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
25. Factory Overhead
Salary & Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Registration & Renewals
Travelling & Conveyance
Entertainment
Research and Development
Rent
Printing & Stationery
Telephone, Cellphone, 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, Cellphone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
Business Acquisition Cost
Company Secretarial, Regulatory Fee and AGM Expense
Municipal Tax & Land Revenue
Training & Conference
Depreciation
Meeting Fee
Security Expenses
Other Expenses
July 2020- June 2021
July 2019- June 2020
Amount in Taka
4,114,208,490
12,446,241,540
(4,452,367,327)
12,108,082,703
3,854,012,150
10,314,568,079
(4,114,208,490)
10,054,371,739
1,533,120,357
446,218,960
39,656,024
9,759,175
17,174,084
34,900,276
4,199,173
313,009,068
13,524,226
32,694,658
10,791,816
235,447,825
296,679,254
9,614,915
15,156,941
910,223,457
27,880,157
8,481,945
3,958,532,311
504,500,078
27,676,800
68,232,587
6,299,916
28,167,143
7,455,924
6,803,770
2,420,000
6,376,660
16,306,564
10,632,552
18,208,232
37,042,133
1,333,030
2,825,669
34,843,193
3,416,000
14,112,817
99,995,897
896,648,965
1,345,684,174
391,224,077
36,933,338
9,034,338
19,443,939
27,128,815
2,801,983
272,389,951
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
3,623,979,789
458,035,801
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
700,698
6,630,474
35,015,790
2,301,650
11,209,371
77,025,630
792,951,709
120 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
27. Selling, Marketing and Distribution Expenses
July 2020- June 2021
July 2019- June 2020
Amount in Taka
Salary & Allowances
Rent
Repairs and Maintenance
Travelling & Conveyance
Entertainment
Printing & Stationery
Telephone, Cellphone, 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, Journals 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
28. Other Income
Interest Income
Dividend Income
Royalty
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)
Vaccine Distribution Fee
Forfeited PF Refund
Profit/(Loss) on Sale of Fixed Assets
Miscellaneous Income
2,439,081,146
90,481,862
38,956,827
643,683,075
66,513,698
41,586,524
77,159,670
33,596,270
21,142,416
82,002,039
127,964,742
34,805,887
361,952,879
7,220,379
51,707,425
274,549,019
146,192,749
11,036,539
152,775,395
10,988,156
42,891,362
6,488,050
27,087,836
254,964,214
140,902,326
158,409,899
437,367,829
385,580,530
169,120,696
20,158,622
3,499,431
16,278,483
6,376,145,975
2,377,286
940,700
40,529,949
309,745,032
(3,716,895)
542,265,041
10,722,438
3,962,426
1,449,307
908,275,284
2,092,122,649
82,034,461
15,310,108
567,898,731
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
5,496,654,323
20,409,291
1,427,930
151,552,031
139,620,667
13,196,829
—
—
(33,797,892)
1,149,448
293,558,304
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 121
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. Other Comprehensive Income/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
32. Earnings Per Share (EPS)/ Restated EPS
July 2020- June 2021
July 2019- June 2020
Amount in Taka
578,560,598
36,342,986
190,970,118
52,811,444
858,685,146
787,650,804
28,711,869
166,837,043
30,604,369
1,013,804,085
1,386,678,310
(174,879,849)
1,211,798,461
1,086,668,418
22,288,436
1,108,956,854
12,840,831
12,840,831
(1,577,828)
(1,577,828)
(a) Earnings attributable to the Owners of the Company
(b) Weighted average number of Shares outstanding during the year
Earnings Per Share (EPS)/ Restated EPS
5,127,693,711
446,112,089
11.49
3,514,687,301
446,112,089
7.88
33. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Less Non-controlling Interest
Equity Attributable to the Owners of the Company
Number of Ordinary Shares
Net Asset Value (NAV) Per Share
June 30, 2021
June 30, 2020
52,246,084,026
(14,881,219,197)
(334,306,627)
37,030,558,202
446,112,089
83.01
50,118,741,940
(17,321,292,327)
(302,329,006)
32,495,120,607
405,556,445
80.12
34. Net Operating Cash Flows Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Ordinary Shares
Net Operating Cash Flows Per Share (NOCFPS)
July 2020- June 2021
July 2019- June 2020
6,023,263,955
446,112,089
13.50
5,542,487,221
405,556,445
13.67
122 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | Annual Report 2020-21
35. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
5,165,749,732
3,544,483,101
July 2020- June 2021
July 2019- June 2020
Amount in Taka
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 *
(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
1,137,369,317
1,016,483,738
97,703,610
191,204,332
6,857,486
(174,879,849)
(4,903,126)
(940,700)
(3,962,426)
—
(274,951,968)
(1,198,094,420)
113,806,063
431,606,560
—
(28,635,374)
2,686,377
587,172,366
(120,113,463)
(63,380,076)
6,023,263,955
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)
557,614,819
(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
5,542,487,221
*The Company used Janata Bank’s applicable (US Dollar-Taka) exchange rate as on June 30, 2021 which remained unchanged with the exchange
rate as on June 30, 2020. As such, there was no effect of exchange rate on Cash and Cash Equivalents.
36. 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
Nature of Transactions
Value of Transaction Balance at year end
(i) I & I Services Ltd.
Delivery of Products
Distribution Commission
27,348,232,493
437,367,829
1,401,534,613
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
Chief Financial Officer
Dhaka
October 21, 2021
Annual Report 2020-21 | Consolidated Financial Statements- Beximco Pharmaceuticals Ltd. and Its Subsidiaries | 123
Financial Statements
Beximco Pharmaceuticals Limited
Independent Auditor’s Report
To the Shareholders of
Beximco Pharmaceuticals Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Beximco Pharmaceuticals Limited (the “Company”), which comprise the Statement of Financial Position
as at 30 June 2021 and Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements of the Company give a true and fair view of the financial position of the Company as at
30 June 2021, 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 2020 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 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. 34,501,205,124 as at 30
June, 2021.
Our audit included the following procedure:
Expenditures are capitalized if they create new assets or enhance
the existing assets, and expensed if they relate to repair or
maintenance of the assets. Classification of the expenditures
involves judgment. The useful lives of PPE items are based on
management’s estimates regarding the period during which the
assets or its significant components will be used. The estimates
are based on historical experience and market practice and take
into consideration the physical condition of the assets.
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
• 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.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 125
Risk
Our response to the risk
Valuation of Inventory
The inventory of Tk. 6,693,894,021 as at 30 June, 2021 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 Liability
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.
126 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
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 2020 and other applicable laws and regulations and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the
Company to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the internal controls of the Company.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as
a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 127
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 2020 and relevant notifications issued by Bangladesh Securities
and Exchange Commission, we also report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our
audit and made due verification thereof;
b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination of
those books;
c) The Company’s Statement of Financial Position (Balance sheet) and Statement of Profit or Loss and Other Comprehensive Income (Profit &
Loss Account) dealt with by this report are in agreement with the books of accounts and;
d) The expenditures incurred and payment made were for the purpose of the Company’s business for the year.
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110310564AS841233
128 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2021
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
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 / Unclaimed Dividend
Income Tax Payable
TOTAL EQUITY AND LIABILITIES
Notes
June 30, 2021
June 30, 2020
Amount in Taka
4
4 (c)
5
6
7
8
9
10
11
12
13
14
15
4(b)
16
17
18
19
20
21
22
23
24
37,713,988,877
34,501,205,124
319,884,849
701,794,902
2,145,185,900
29,325,720
16,592,382
36,240,980,000
33,244,656,330
237,100,169
580,960,330
2,145,185,900
29,325,720
3,751,551
13,150,677,229
12,438,793,173
6,693,894,021
622,433,282
2,831,869,241
2,354,576,102
647,904,583
5,528,438,165
735,703,950
3,213,666,345
2,345,039,872
615,944,841
50,864,666,106
48,679,773,173
36,707,591,755
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,121,824,646
13,767,206
23,856,816,415
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
5,265,836,197
5,692,973,418
1,206,717,094
2,187,144,706
1,871,974,397
1,641,924,046
2,015,304,583
2,035,744,789
8,891,238,154
10,630,440,620
4,857,106,281
1,401,406,013
1,814,013,039
480,501,854
117,769,532
220,441,435
6,987,530,622
1,421,497,401
1,267,069,842
609,401,272
81,792,791
263,148,692
50,864,666,106
48,679,773,173
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110310564AS841233
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 129
Beximco Pharmaceuticals Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2021
Notes
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profit Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profit after Tax
Other Comprehensive Income/(Loss)
Total Comprehensive Income
Earnings Per Share (EPS)/ Restated EPS
25
26
29
30
31
32
33
34
35
36
26,949,351,606
(14,347,382,048)
12,601,969,558
(6,532,965,326)
(792,228,907)
(5,740,736,419)
23,557,775,896
(12,753,521,901)
10,804,253,995
(5,690,899,854)
(699,940,325)
(4,990,959,529)
6,069,004,232
5,113,354,141
1,108,048,355
(841,875,806)
6,335,176,781
445,556,500
(957,931,515)
4,600,979,126
(301,675,085)
(219,094,244)
6,033,501,696
4,381,884,882
(1,090,012,960)
(1,250,545,631)
160,532,671
4,943,488,736
12,840,831
4,956,329,567
(1,018,485,009)
(983,282,880)
(35,202,129)
3,363,399,873
(1,577,828)
3,361,822,045
11.08
7.54
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110310564AS841233
130 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
Beximco Pharmaceuticals Limited
Statement of Changes in Equity
For the Year ended June 30, 2021
Balance as on July 01, 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
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
Total Comprehensive Income
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Stock Dovidend
Adjustment for Depreciation on Revalued Assets
Adjustment for Deferred Tax on Revalued Assets
—
—
—
405,556,440
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— 4,943,488,736
4,943,488,736
— 12,840,831
—
12,840,831
—
—
— (608,334,668)
(608,334,668)
— (405,556,440)
7,180,526
—
—
—
3,237,721
(7,180,526)
3,237,721
—
—
Balance as on June 30, 2021
4,461,120,890 5,269,474,690
1,689,636,958
294,950,950 1,121,824,646 13,767,206
23,856,816,415
36,707,591,755
Net Asset Value (NAV) Per Share (Note-37)
82.28
For the Year ended June 30, 2020
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
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
Total Comprehensive Income
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
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— 3,363,399,873
3,363,399,873
—
(1,577,828)
—
(1,577,828)
—
— (608,334,668)
(608,334,668)
(8,114,071)
2,028,518
—
—
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
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110310564AS841233
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 131
Beximco Pharmaceuticals Limited
Statement of Cash Flows
For the Year ended June 30, 2021
Cash Flows from Operating Activities :
Receipts from Customers and Others
Payments to Suppliers and Employees
Cash Generated from Operations
Interest Paid
Interest Received
Income Tax Paid
Net Cash Generated from Operating Activities
39
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment
Intangible Assets
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 Flows Per Share
39
13
38
Notes
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
28,403,792,004
(20,656,123,661)
7,747,668,343
(841,875,806)
2,377,286
(1,293,252,888)
5,614,916,935
(2,463,893,877)
(22,864,119)
32,751,038
35,987,859
—
(2,418,019,099)
(462,155,826)
(2,130,424,341)
(572,357,927)
(3,164,938,094)
31,959,742
615,944,841
—
647,904,583
24,096,145,079
(17,060,430,359)
7,035,714,720
(957,931,515)
20,409,291
(887,432,426)
5,210,760,070
(2,224,544,487)
(31,745,002)
3,572,001
21,454,903
323,364,536
(1,907,898,049)
(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
12.59
12.85
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 21, 2021 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110310564AS841233
132 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
Beximco Pharmaceuticals Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2021
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. 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
2020, 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 31 December
2008, investment in shares of listed company valued at year end quoted price and the cash flow statement 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 comprises of:
(a) Statement of Financial Position as at the end of the year June 30, 2021;
(b) Statement of Profit or Loss and Other Comprehensive Income for the year ended June 30, 2021;
(c) Statement of Changes in Equity for the year ended June 30, 2021;
(d) Statement of Cash Flows for the year ended June 30, 2021; 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, 2020 to June 30, 2021. The last audited financial statements were
prepared for the year ending June 30, 2020. 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 October 21, 2021.
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.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 133
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 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 assets acquired under lease are reported as “Right-of-use Assets” 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.
134 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
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 uncollectible 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 or 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. Financial liabilities include payable for expenses, liability for capital expenditure and other current liabilities.
3.6. Impairment
3.6.1. Financial Assets
Accounts receivable and other receivables are assessed at each reporting date to determine whether there is any objective
evidence of impairment. Financial assets are impaired if objective evidence indicates that a loss event has occurred after the initial
recognition of the asset and that the loss event had a negative effects on the estimated future cash flows of that asset, that can be
estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, indications
that a debtor or issuer will enter bankruptcy etc.
3.6.2. Non-Financial Assets
An asset is impaired when its carrying amount exceeds its recoverable amount. The Company assesses at each reporting date
whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable
amount of the asset. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Carrying
amount of the assets is reduced to its recoverable amount by recognizing an impairment loss if, and only if, the recoverable amount
of the asset is less than its carrying amount. Impairment loss is recognized immediately in profit or loss, unless the asset is carried
at revalued amount. Any impairment loss of a revalued asset shall be treated as a revaluation decrease.
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.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 135
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 22.5%. However, profit generated from export is subject to
a reduced 11.25%. Additionally, certain other income are also liable to lower tax 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 reported in the Financial Statements and its tax base, and accordingly, deferred tax income/expenses are
recognized as profit or loss.
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 the said dividend. Stock dividend income (Bonus Shares) is not
considered as revenue.
Cash Incentive on Export
Cash Incentive on Export is 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 incentive is established.
Royalty
Royalty income is accounted for on accrual basis on fulfillment of the terms laid down in the agreement between the contracting parties.
Interest Income
Interest income is recognized on accrual basis.
Vaccine Distribution Fee
Vaccine Distribution fee is recognized on delivery of Vaccine to the designated government warehouses across the country, fulfilling the terms
and conditions of the agreement. The income is reported net of relevant expenses.
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 complying applicable laws.
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 recognized 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 fund 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.
136 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
3.12.2. Defined Benefit Plan (Gratuity)
The Company took initiatives to convert its unfunded gratuity scheme to funded gratuity, which was subsequently approved by the
National Board of Revenue. 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 Act 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 dividing the basic earnings by the weighted average
number of ordinary shares outstanding during the year.
Diluted Earnings per Share
No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review.
3.16. Foreign Currency Transactions
Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date.
The monetary assets and liabilities, if any, denominated in foreign currencies at the financial position date are translated at the applicable rates
of exchanges ruling at that date. Exchange differences are charged off as revenue expenditure in compliance with the provisions of IAS 21: The
Effects of Changes in Foreign Exchange Rates.
3.17. Statement of Cash Flows
The Statement of Cash Flows 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.
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.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 137
4 . Property, Plant and Equipment
As on June 30, 2021
Amount in Taka
Particulars
Cost
As on July 01, 2020
Additions
Transferred in & Capitalized
Disposal during the Year
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
3,343,741,442
—
—
—
7,499,761,533
3,694,494
298,207,642
—
14,495,139,238
119,455,263
965,316,704
(36,523,171)
281,071,740
18,597,471
1,558,986
(896,228)
686,005,246
—
—
(21,101,899)
585,815,483
34,888,865
2,848,259
(253,700)
26,891,534,682
176,636,093
1,267,931,591
(58,774,998)
390,192,696
130,204,714
—
—
27,281,727,378
306,840,807
1,267,931,591
(58,774,998)
Cost as on June 30, 2021
3,343,741,442
7,801,663,669 15,543,388,034
300,331,969 664,903,347
623,298,907
28,277,327,368
520,397,410
28,797,724,778
Accumulated Depreciation
As on July 01, 2020
Depreciation Charged
Adjustment for Assets disposed off
Accumulated Depreciation as
on June 30, 2021
—
—
—
2,116,657,101
182,187,976
—
6,272,267,313
602,682,764
(15,299,760)
133,699,879
14,673,982
(264,188)
498,744,471
36,081,381
(14,248,029)
394,798,590
28,519,516
(109,385)
9,416,167,354
864,145,619
(29,921,362)
153,092,527
47,420,034
—
9,569,259,881
911,565,653
(29,921,362)
—
2,298,845,077
6,859,650,317
148,109,673 520,577,823
423,208,721
10,250,391,611
200,512,561
10,450,904,172
Net Book Value June 30, 2021
3,343,741,442
5,502,818,592
8,683,737,717
152,222,296 144,325,524
200,090,186
18,026,935,757
319,884,849
18,346,820,606
Capital Work in Progress 4 (a)
16,474,269,367
— 16,474,269,367
Carrying Value as on June 30, 2021
34,501,205,124
319,884,849
34,821,089,973
As on June 30, 2020
Particulars
Cost
As on July 01, 2019
Additions
Transferred in & Capitalized
Disposal during the Year
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
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)
Cost as on June 30, 2020
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)
15,769,289,002
— 15,769,289,002
Carrying Value as on June 30, 2020
33,244,656,330
237,100,169
33,481,756,499
138 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
4 (a) Capital Work in Progress is arrived at as follows :
Opening Balance
Addition during the year
Transferred & Capitalized
Building and Other Constructions
Plant & Machinery
Furniture & Fixture
Office Equipment
Intangible Assets
June 30, 2021
Amount in Taka
June 30, 2020
15,769,289,002
2,138,014,252
17,907,303,254
1,433,033,887
298,207,642
965,316,704
1,558,986
2,848,259
165,102,296
13,724,933,841
2,044,355,161
15,769,289,002
—
—
—
—
—
—
Closing balance
16,474,269,367
15,769,289,002
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
Particulars
Cost
As on July 01, 2020
Addition / Transferred in & Capitalized
As on June 30, 2021
Amortization
As on July 01, 2020
Amortized During the year
As on June 30, 2021
1,125,767,451
(7,180,526)
3,237,721
1,121,824,646
1,131,853,004
(8,114,071)
2,028,518
1,125,767,451
520,397,410
(200,512,561)
319,884,849
390,192,696
(153,092,527)
237,100,169
Product Development,
Licensing and Marketing
Rights
ERP System
Total
648,055,417
165,102,296
813,157,713
169,745,334
22,864,119
192,609,453
817,800,751
187,966,415
1,005,767,166
220,130,051
50,421,481
270,551,532
16,710,370
16,710,362
33,420,732
236,840,421
67,131,843
303,972,264
Carrying Value as on June 30, 2021
542,606,181
159,188,721
701,794,902
Carrying Value as on June 30, 2020
427,925,366
153,034,964
580,960,330
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 139
6. Investment in Subsidiaries
Nuvista Pharma Ltd.
Beximco Pharma API Ltd.
June 30, 2021
2,125,186,000
19,999,900
2,145,185,900
Amount in Taka
June 30, 2020
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 aforsaid 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: Seperate Financial Statements, in preparing financial
statements of the Company.
7. Investment in Associates
This represents value of 3,900,000 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, 2020
Unrealised Gain/
(Loss)
2,182,101
1,569,450
3,751,551
12,840,831
—
12,840,831
June 30, 2021
15,022,932
1,569,450
16,592,382
July 01, 2020
June 30, 2021
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. as on June 30, 2021 was Tk. 89.50 (June 30, 2020: Tk.13.00). The fair value gain of Tk. 12,840,831
has been accounted for as Other Comprehensive Income following IFRS9: 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.
140 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
9. Inventories
This consists of as follows :
Finished Goods
Work in Process
Raw Materials
Packing Materials
Laboratory Chemicals
Physician Samples
R & D Materials
Materials in Transit
10. Spares & Supplies
This consists of as follows :
Spares & Accessories
Stock of Stationery
Literature & Other Materials
11. Accounts Receivable
This consists of :
Trade Receivable
Other Receivable
June 30, 2021
Amount in Taka
June 30, 2020
1,188,526,554
282,756,046
3,007,666,959
1,104,206,746
62,041,717
79,764,262
22,520,999
946,410,738
6,693,894,021
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
545,385,920
16,841,919
60,205,443
622,433,282
649,953,543
14,209,600
71,540,807
735,703,950
2,657,960,805
173,908,436
2,831,869,241
2,978,567,354
235,098,991
3,213,666,345
Accounts Receivable is reported net of provision for bad debts of Tk. 8,169,353. It includes an amount of Tk. 840,777,271, equivalent USD
9,985,468 (June 30, 2020: Tk. 817,658,851, USD 9,710,913) 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.1,401,534,613 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.1,695,026,636 on 31 May 2021. Additionally an amount
of Tk 24,956,668 and Tk 679,830 is receivable from its 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
2,593,603,554
64,357,251
2,657,960,805
2,930,309,371
48,257,983
2,978,567,354
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 141
12. Loans, Advances and Deposits
This is unsecured, considered good and consists of as follows :
Clearing & Forwarding
VAT
Claims Receivable
Security Deposit & Earnest Money
Lease Deposit
Capital Expenditure/ Project
Expenses
Bank Guarantee Margin
Advance against Salary
Rent Advance
Motor Cycle
Raw & Packing Material
Prepaid Insurance
Overseas Liaison Office
Others
Amount in Taka
June 30, 2021
June 30, 2020
249,538,566
463,448,047
25,777,861
164,445,896
2,650,135
128,076,779
294,270,664
20,831,185
173,756,608
34,886,833
148,885,137
460,856,879
30,641,155
58,207,996
98,302,361
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
2,354,576,102
2,345,039,872
a. The maximum amount due from the employees during the year was Tk. 175,745,823 on 31 December, 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.
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 :
164,391,788
170,283,669
443,374,564
40,138,231
407,279,678
38,381,494
647,904,583
615,944,841
1,000,000,000 Ordinary Shares of Tk. 10 each
50,000,000 fully convertible 5 % Preference Shares of Tk. 100 each
10,000,000,000
5,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000
15,000,000,000
b. Issued, Subscribed and Paid-up :
51,775,750 Shares fully paid-up in cash
357,093,942 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
517,757,500
3,570,939,420
59,512,500
312,911,470
4,461,120,890
517,757,500
3,165,382,980
59,512,500
312,911,470
4,055,564,450
142 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
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.
100,037,989 Shares have been issued as underlying shares for the GDRs listed with AIM of London Stock Exchange.
c. Composition of Shareholding :
Sponsors / Directors
A S F Rahman
Salman F Rahman
Other Directors and Associates
Other Shareholdings:
Foreign Portfolio Investors (DSE/CSE)
Holders of GDRs (excluding Board Director)
Institutions (ICB, ICB Investors’ Accounts & Others)
Individual Shareholders
Total
d. Distribution Schedule of Ordinary Shares:
June 30, 2021
June 30, 2020
Number of Shares
% of Share Capital
Number of Shares % of Share Capital
9,058,888
9,080,095
116,517,180
134,656,163
51,907,674
84,386,054
87,784,924
87,377,274
311,455,926
446,112,089
2.03
2.04
26.11
30.18
11.64
18.92
19.68
19.58
69.82
100.00
8,235,353
8,254,632
37,019,789
53,509,774
48,720,273
90,943,627
148,762,402
63,620,369
352,046,671
405,556,445
2.03
2.04
9.13
13.20
12.01
22.42
36.68
15.69
86.80
100.00
Range of Shareholdings
Number of
Shareholders
% of Holding
Number of
Shareholders
% of Holding
Number of
Shares
% of
Holding
Number of
Shares
% of
Holding
June 30, 2021
June 30, 2020
June 30, 2021
June 30, 2020
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
Total
38,764
14,059
1,098
567
185
84
76
150
227
38
55,248
70.16%
25.45%
1.99%
1.03%
0.33%
0.15%
0.14%
0.27%
0.41%
0.07%
100%
41,587
12,340
1,059
484
159
81
58
129
162
42
56,101
74.13%
22.00%
1.89%
0.86%
0.28%
0.14%
0.10%
0.23%
0.29%
0.07%
100%
5,274,349
1.18%
6,052,732
19,890,718
4.46% 18,684,552
7,895,652
8,078,197
4,575,664
2,947,573
3,595,456
11,069,746
1.77%
1.81%
1.03%
0.66%
0.81%
2.48%
7,555,392
6,983,130
4,044,868
2,832,929
2,666,648
9,472,994
66,828,442
14.98% 50,405,277
316,056,292
70.83% 296,857,923
446,212,089
100% 405,556,445
1.49%
4.61%
1.86%
1.72%
1.00%
0.70%
0.66%
2.34%
12.43%
73.20%
100%
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
Tk.
Tk.
GBP
June 30, 2021
June 30, 2020
177.30
176.60
0.860
69.20
69.10
0.355
f. Option on unissued Ordinary Shares :
There is no option on unissued shares as on June 30, 2021.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 143
15. 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.
16. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Lease Liability
a. Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
June 30, 2021
Amount in Taka
June 30, 2020
972,696,465
234,020,629
1,206,717,094
1,437,978,890
203,945,156
1,641,924,046
This represents part of the foreign currency loan of US$ 51.559 million and Euro 20.222 million taken for the expansion and diversification
project being implemented by the Company. Interest of US$ loan is 6 month’s USD LIBOR plus 2.25% while the same for Euro loan is 6 month’s
EURIBOR plus 1.30% per annum. Both the loans are secured by exclusive first charge by way of hypothecation against the machinery and
equipment to be procured under the pertinent loans.
b. Lease Liability
This consists of as follows:
Within one year
Within two to five years
17. Liability for Gratuity and WPPF & Welfare Funds
a. Gratuity Payable
Opening Balance
Provisions during the year
Paid to Employees during the year
Investment - Gratuity Fund
Opening Balance
Payment during the year
113,976,268
234,020,629
347,996,897
106,584,243
203,945,156
310,529,399
1,056,920,260
221,588,892
1,278,509,152
(64,575,395)
1,213,933,757
—
(40,000,000)
(40,000,000)
933,437,744
184,425,140
1,117,862,884
(60,942,624)
1,056,920,260
—
—
—
Closing balance at end of the Year
1,173,933,757
1,056,920,260
b. Workers Profit Participation and Welfare Fund
1,013,210,949
2,187,144,706
958,384,323
2,015,304,583
144 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
18. Deferred Tax Liability
Opening Balance
Addition during the Year :
Deferred Tax on Assets -Note : 34
Adjustment for Deferred Tax on revalued amount
Closing Balance
19. Short Term Borrowings
Janata Bank Limited
AB Bank Limited
First Security Islamic Bank Limited
Liability for UPAS Letter of Credit
June 30, 2021
Amount in Taka
June 30, 2020
2,035,744,789
2,002,571,178
(160,532,671)
(3,237,721)
35,202,129
(2,028,518)
1,871,974,397
2,035,744,789
3,077,454,947
1,014,765,029
510,141,234
254,745,071
4,857,106,281
3,963,918,204
1,106,352,880
510,491,234
1,406,768,304
6,987,530,622
a. Short term borrowings from Janata Bank represents revolving credit facilities renewable annually. The borrowing carries 9% interest.
b. Loan from AB Bank represents a revolving overdraft limit to Tk 50 Crore and a Time loan of Tk. 60 crore payable in monthly installments.
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 Aktiengesellshaft, Frankfurt, Germany.
d. The borrowing from First Security Islamic Bank Ltd represents a Bai-Murabaha (Hypo) Credit facility of Tk.50 crore for purchasing of 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 excepting the machinery and equipment financed by ODDO BHF Aktiengesellshaft, Frankfurt, Germany.
20. Long Term Borrowings-Current Maturity
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Lease Liability
AB Bank Limited
21. Creditors and Other Payables
Goods & Services
Provident Fund
Advance Against Sales
Others
22. Accrued Expenses
This is unsecured, falling due within one year and consists of as follows :
For Expenses
Workers’ Profit Participation and Welfare Funds - (current year)
1,287,429,745
113,976,268
—
937,110,252
106,584,243
377,802,906
1,401,406,013
1,421,497,401
622,523,948
797,569,927
298,396,187
95,522,977
485,464,404
726,878,755
12,393,114
42,333,569
1,814,013,039
1,267,069,842
178,826,769
301,675,085
480,501,854
390,307,028
219,094,244
609,401,272
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 145
23. Dividend Payable / Unclaimed Dividend
The Dividend Payable/Unclaimed dividend as on June 30, 2021 includes prior years’ dividend of Tk. 81,113,713 unclaimed to date. The unclaimed
dividend reported under Creditors and Other Payables in the prior period has been reclassified in this financial statement. Subsequent to the
Balance Sheet date an amount of Tk 64,297,249 has been paid to the Capital Market Stabilization Fund (CMSF) in compliance to BSEC directive
no. BSEC/CMRRCD/2021-386/03 dated January 14, 2021.
24. Income Tax Payable
Opening Balance
Provision for the year
Income Tax Paid
25. Net Sales Revenue
Domestic Sales
Export Sales
June 30, 2021
263,148,692
1,250,545,631
1,513,694,323
(1,293,252,888)
220,441,435
Amount in Taka
June 30, 2020
167,298,238
983,282,880
1,150,581,118
(887,432,426)
263,148,692
Amount in Taka
July 2020 - June 2021
July 2019 - June 2020
23,825,350,346
20,805,985,652
3,124,001,260
2,751,790,244
26,949,351,606
23,557,775,896
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
Active Pharmaceutical Ingredients
Liquid Nitrogen
Unit
Million pcs.
Million pcs.
Kg
Liter
Quantity
July 2020 - June 2021
July 2019 - June 2020
7,316.90
119.19
181,903
352,970
6,778.75
114.54
190,552
438,734
b. The value of Export Sales in equivalent US Dollar is 37,106,411 in 2020-21 as against US Dollar 32,745,911 in 2019-20.
146 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
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, 2021
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, 2020
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution, Injectable and Inhaler
Active Pharmaceutical Ingredients
Unit
Million pcs.
Million pcs.
Kg
Unit
Million pcs.
Million pcs.
Kg
27. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
249,838,762
11,428,162,801
3,446,781,489
420,135,832
9,491,277,964
3,153,943,937
15,124,783,052
13,065,357,733
(282,756,046)
14,842,027,006
972,564,349
15,814,591,355
(278,682,753)
(1,188,526,554)
(249,838,762)
12,815,518,971
1,155,804,007
13,971,322,978
(245,236,728)
(972,564,349)
14,347,382,048
12,753,521,901
Quantity
504.72
9.77
5,890
Quantity
451.57
7.23
5,674
Value (Tk.)
640,992,836
529,368,303
18,165,415
1,188,526,554
Value (Tk.)
535,160,110
421,235,247
16,168,992
972,564,349
3,915,389,246
11,686,688,977
(4,173,915,422)
11,428,162,801
3,690,300,531
9,716,366,679
(3,915,389,246)
9,491,277,964
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 147
28. Factory Overhead
Salary & Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Registration & Renewals
Travelling & Conveyance
Entertainment
Research and Development
Rent
Printing & Stationery
Telephone, Cellphone, Internet & Postage
Toll Expense
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Security Expenses
Other Expenses
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
1,328,827,639
316,507,536
34,761,486
8,898,435
17,174,084
34,900,276
2,644,001
280,881,455
13,524,226
31,165,292
10,791,816
257,499,789
227,941,467
9,614,915
15,156,941
824,966,915
25,624,559
5,900,657
3,446,781,489
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
3,153,943,937
a. Salary and Allowances include Company’s Contribution to provident fund amounting to Tk. 23,447,314
b. Repairs and Maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures. Also included
therein, imported stores and spares that has been consumed during the year.
c. Other expenses does not include any item exceeding 1% of total revenue.
29. Administrative Expenses
Salary & Allowances
Rent
Repairs and Maintenance
Registration & Renewals
Travelling & Conveyance
Entertainment
Printing & Stationery
Audit Fee
Telephone, Cellphone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
Business Acquisition Cost
Company Secretarial, Regulatory Fee and AGM Expense
Municipal Tax & Land Revenue
Training & Conference
Depreciation
Meeting Fee
Security Expenses
Other Expenses
439,818,179
16,222,800
56,771,422
6,299,916
26,851,992
6,498,289
5,725,309
2,000,000
4,272,321
14,078,915
10,456,662
18,208,232
37,042,133
353,080
783,336
31,904,798
3,128,000
14,112,817
97,700,706
792,228,907
402,132,499
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
237,016
4,853,033
32,019,171
2,013,650
11,209,371
75,935,608
699,940,325
a. Salary and Allowances include Company’s Contribution to provident fund amounting to Tk.8,644,309
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. 1,015,336 ( in 2020 Tk.10,163,463)
e. Other expenses does not include any item exceeding 1% of total revenue.
148 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
30. Selling, Marketing and Distribution Expenses
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
Salary & Allowances
Rent
Repairs and Maintenance
Travelling & Conveyance
Entertainment
Printing & Stationery
Telephone, Cellphone, Internet & Postage
Software & Licences
Electricity, Gas & Water
Market Research & New Products
Training & Conference
Insurance Premium
Sample Expense
Advertisement
Field Operation
Events, Programs & Campaign
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
2,111,616,016
82,752,962
31,561,657
552,791,027
64,055,502
39,958,791
65,439,973
33,596,270
20,107,493
71,595,632
120,555,180
32,094,000
347,209,107
1,769,732
44,864,430
266,667,446
139,998,190
11,036,539
135,410,431
8,047,595
23,398,324
6,488,050
27,087,836
221,415,292
139,697,491
158,409,899
437,367,829
385,580,530
121,825,781
20,158,622
3,025,000
15,153,792
5,740,736,419
1,814,891,870
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
4,990,959,529
a. Salary and Allowances include Company’s Contribution to provident fund amounting to Tk. 42,188,361
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. Other expenses does not include any item exceeding 1% of total revenue.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 149
31. Other Income
Interest Income
Dividend Income
Royalty
Distribution Commission Income
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)
Vaccine Distribution Fee
Forfeited PF Refund
Profit/(Loss) on Sale of Fixed Assets (Note 41)
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
2,377,286
35,987,859
69,272,533
139,631,437
309,745,032
(3,716,895)
542,265,041
8,588,660
3,897,402
1,108,048,355
20,409,291
21,454,903
172,940,165
111,757,229
139,620,667
13,196,829
—
—
(33,822,584)
445,556,500
a. Royalty income of Taka 28,742,584 comes from licensing of BPL products 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 losses has been netted off with the exchange rate fluctuation gains. An exchange loss of Tk. 6,857,486 has arisen
from the the translation of outstanding foreign currency loan from ODDO BHF Aktiengesellshaft, Frankfurt, Germany translated at the exchange
rate prevailing on the financial position date.
e. Beximco Pharma entered into a tripartite agreement with the Government of Bangladesh (GOB) and the Serum Institute of India Pvt. Ltd (“SII”),
for the supply of 30 million doses of Oxford University/AstraZeneca SARS-CoV-2 vaccine, AZD1222, in Bangladesh. The Company delivered 7
million vaccine during the reported year. As per agreement, the Company is to receive fees for the import, storage and delivery of the vaccine to
the GOB warehouses across the country. The Company is also responsible for replenish any quantity of loss arising from the cold chain disruptions
at its own cost. Any future earning from this source is dependent on the delivery of the committed quantity of vaccine under the agreement.
Income from Vaccine distribution is reported net of related expenses.
f. In compliance to FRC circular no. 179/FRC/FRM/Notification/2020/2 dated July 7, 2020 the Company has recovered the forfeited PF contribution
from the Provident Fund Trust which has been reported as Forfeited PF Refund.
32. Finance Cost
Interest on Bank Borrowings
Interest on Lease Finance
Interest on Loan from PF, WPPF & Welfare Fund
Other Bank Charges
562,867,528
35,970,714
190,970,118
52,067,446
841,875,806
733,669,187
27,790,746
166,837,043
29,634,539
957,931,515
150 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
33. Contribution to WPPF & Welfare Funds
This represents statutory contribution by the Company as per Bangladesh Labour Act 2013. The amount is computed @ 5% of net profit before
tax (after charging such contribution).
34. Income Tax Expenses
This consists of as follows :
a. Current Tax
Tax provision for current Year (Note 3.9)
b. Deferred Tax Expense
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
Deferred tax on Revaluation Surplus
Deferred Tax charged to profit or Loss and Other Comprehensive Income
July 2020 -
June 2021
Amount in Taka
July 2019 -
June 2020
1,250,545,631
983,282,880
(160,532,671)
35,202,129
1,090,012,960
1,018,485,009
9,501,989,318
9,205,043,771
(1,173,933,757)
(1,056,920,260)
(8,169,353)
(5,144,353)
8,319,886,208
8,142,979,158
22.5%
25%
1,871,974,397
2,035,744,789
2,035,744,789
2,002,571,178
(163,770,392)
3,237,721
(160,532,671)
33,173,611
2,028,518
35,202,129
Reconciliation of Effective tax rate
2020-21
2019-20
%
Tk.
%
Tk.
Profit before Tax
Applicable Tax
6,033,501,696
22.50% 1,357,537,882
Effect of lower rate on Export Profit excluding Cash Incentive
-1.56%
(94,206,509)
Effect of lower rate on cash incentive
Effect of lower rate on dividend income
Effect of permanent disallowances
Deferred tax impact for changing tax rate & others
-0.64%
(38,718,129)
-0.01%
0.86%
(899,696)
51,624,342
-3.07% (185,324,930)
25.00%
-2.20%
-0.48%
-0.02%
0.94%
0.00%
4,381,884,882
1,095,471,221
(96,362,751)
(20,943,100)
(1,072,745)
41,392,384
—
Income Tax Expense
18.07% 1,090,012,960
23.24%
1,018,485,009
a. Export Profits are subject to 11.25% Tax rate
b. 10% Tax deductible at source on the cash incentives are treated as final tax liability on such income as per the Income Tax regulations
c. Dividend Income is taxable @ 20%
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 151
35. Other Comprehensive Income/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares Note 8 ( a )
36. Earnings Per Share (EPS)/ Restated EPS
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
12,840,831
12,840,831
(1,577,828)
(1,577,828)
a. Earnings attributable to the ordinary shareholders
Tk.
4,943,488,736
b. Weighted average number of shares outstanding during the year (Note 3.15)
Earnings Per Share (EPS)
Tk.
446,112,089
11.08
3,363,399,873
446,112,089
7.54
37. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Net Assets
Number of Shares
Net Asset Value (NAV) Per Share
June 30, 2021
June 30, 2020
50,864,666,106
(14,157,074,351)
36,707,591,755
446,112,089
82.28
48,679,773,173
(16,323,414,038)
32,356,359,135
405,556,445
79.78
July 2020 - June 2021
July 2019 - June 2020
38. Net Operating Cash Flows Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Ordinary Shares
Net Operating Cash Flows Per Share (NOCFPS)
5,614,916,935
446,112,089
12.59
5,210,760,070
405,556,445
12.85
152 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
July 2020 - June 2021
July 2019 - June 2020
Amount in Taka
39. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
4,943,488,736
3,363,399,873
Adjustment to reconcile net profit to net cash provided by operating activities :
Non-cash Expenses :
Depreciation
Amortization
Gratuity & WPPF
Exchange rate fluctuation (Gain)/loss
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
996,862,434
911,565,653
67,131,843
171,840,123
6,857,486
(160,532,671)
(39,885,261)
(35,987,859)
(3,897,402)
—
(285,548,974)
(1,165,455,856)
113,270,668
381,797,104
(9,536,230)
565,982,015
(128,899,418)
(42,707,257)
5,614,916,935
1,267,944,433
914,833,448
60,906,370
266,403,789
(9,401,302)
35,202,129
10,399,024
(21,454,903)
33,822,584
(1,968,657)
569,016,740
45,111,006
(20,362,634)
112,224,252
(71,999,051)
294,969,732
113,222,981
95,850,454
5,210,760,070
*The Company used Janata Bank’s applicable (US Dollar-Taka) exchange rate as on June 30, 2021 which remained unchanged with the exchange
rate as on June 30, 2020. As such, there was no effect of exchange rate on Cash and Cash Equivalents.
40. Related Party Disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Parties
Nature of Transactions
Value of Transaction
Balance at year end Balance Type
a. I & I Services Ltd.
b. Nuvista Pharma Ltd
Delivery of Products
Distribution Commission
Toll Manufacturing
Cost of services
Royalty
Dividend
Distribution commission
c. Beximco Pharma API Limited
Short Term Advance
27,348,232,493
437,367,829
27,882,074
56,571,923
28,742,584
35,047,159
139,631,437
135,470
1,401,534,613
1,379,979
4,449,651
5,875,790
—
14,631,227
679,830
Dr.
Cr.
Dr.
Dr.
Dr.
Dr.
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 153
41. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the year ended June 30, 2021:
Particulars of Assets
Plant & Machinery
Office Equipment
Furniture & Fixtures
Transport & Vehicle
Cost
Accumulated
Depreciation
Written Down
Value
Sales Price
Profit / (Loss)
Mode of
Disposal
36,523,171
15,299,760
21,223,411
21,133,368
(90,043) Negotiation
253,700
896,228
109,385
264,188
144,315
632,040
143,772
632,040
(543) Negotiation
— Negotiation
21,101,899
14,248,029
6,853,870
10,841,858
3,987,988 Negotiation
Tk.
58,774,998
29,921,362
28,853,636
32,751,038
3,897,402
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
433,526,806
36,377,866
16,770,675
42,705,419
16,741,931
14,919,803
561,042,500
a. The above includes salary, allowances, and perquisites amounting Tk. 64,468,438 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 and Capacity Utilization
June 2021
June 2020 July 2020 to June 2021
July 2019 to June 2020
Quantity
Quantity
Quantity
%
Quantity
%
Tablet, Capsule, Suppository & DPI
Million Pcs
5,885.53
5,842.87
7,093.47
120.52% 6,586.29
112.72%
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic, Nebulizer
Solution, Injectable, Inhaler and Insulin
Million Pcs
102.70
100.98
115.36
112.33%
115.39
114.27%
Active Pharmaceuticals Ingredient (API)
Matric Ton
22.00
—
4.61
20.95%
—
—
Production does not include goods manufactured under contract manufacturing arrangement from third party manufacturing sites.
44. Capital Expenditure Commitment
There was no capital expenditure contracted but not incurred or provided for at June 30, 2021.
154 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
45. Claim not Acknowledged as Debt
There was no claim against the Company not acknowledged as debt as on June 30,2021.
46. Un-availed Credit Facilities
ODDO BHF Aktiengesellshaft, Frankfurt, Germany approved an ECA term loan of Euro 20.22 million to partially finance the machinery and
equipment for the expansion project being implemented by the Company. An amount of Euro 13.25 million has been disbursed as on Balance
Sheet date. The remaining Euro 6.97 million is disbursable against procurement of the machinery & equipment.
47. Foreign Currency Payments & Receipts:
Payments :
Materials, Spares and Capital Machinery
Foreign Currency Loans, Fees & Expenses
Receipts :
Export Sales & Others
Foreign Currency
(Equivalent US$)
Taka
117,646,013
9,990,687,199
17,504,877
1,474,594,231
38,467,352
3,238,247,158
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 has Tk. 144,113,691 against the Company. The Company own the verdict of the Appellate Tribunal
in its favor. The concerned authority has 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
a. The Board of Directors of the Company recommended 35% cash dividend (i.e. Tk. 3.50 per share) for the year 2020-21. The dividend
proposal is subject to shareholders’ approval at the forthcoming Annual General Meeting.
b. The Board of Directors of Nuvista Pharma Limited (NPL) has declared cash dividend @ 40% ( i.e. Tk. 4.00 per share) for the year 2020-21.
The proposed dividend is subject to approval of the shareholders of NPL in the forthcoming Annual General Meeting.
c. Subsequent to the Balance Sheet date Beximco Pharma completed the acquisition of 54.6% stakes in Sanofi Bangladesh Ltd. at a
consideration of approximately Taka 469.62 crore (equivalent £39.35 million) pending final closing adjustments, if any.
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
Annual Report 2020-21 | Financial Statements- Beximco Pharmaceuticals Limited | 155
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, 2021 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.
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 21, 2021
156 | Financial Statements- Beximco Pharmaceuticals Limited | Annual Report 2020-21
Financial Statements
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 2021 together with the Auditors’ Report thereon.
Operating Performance
We concluded year 2020-21 with remarkable success amidst the disruptions created by the ongoing pandemic. The economic and
business environment remained challenging throughout the financial year, especially in the first and fourth quarter, when Bangladesh
faced two surges of COVID-19 upsetting the life and livelihood of the people. However, gaining experience from the past and relying
on our strength of resilience, we reimagined and redesigned our operating and business strategies to exploit the maximum business
potentials. We adjusted our customer interaction model to stay closer to them than ever before. During this time, we stepped up our
contact with our core specialty doctors through digital channels, face-to-face visit and with other scientific activities on virtual digital
platforms. We re-aligned our manufacturing and other support functions to fit to the challenging condition consequent to which we
managed uninterrupted production and supply of our products to the market. Thanks to the Company’s employee-friendly policies
giving highest priority on the health and safety of the people and unceasing support that encouraged them to contribute their fullest,
resulting in improved business and operational performance.
Our sales revenue increased by a significant 24.04% to reach a new height of Tk. 2,572.1 million in 2020-21 as against Tk. 2,073.6
million of preceding year. Most of our key therapeutic segments registered faster growth than the industry. During the year, we added
10 new products in our portfolio and got encouraging market response. They contributed Tk. 71.5 million in sales in the first year of
introduction, which shows their strong growth potential. The new products that we launched in 2019-20 continued to perform well
in their respective market categories and contributed Tk. 217.3 million in 2020-21. Also in 2020-21, we generated Tk. 66.3 million
from rendering toll services to other pharmaceutical companies.
The Company earned an after-tax net profit of Tk. 299.7 million in 2020-21 as against Tk. 243.8 million in 2019-20, marking a
significant 22.93% growth. Impressive achievement of sales, improved gross margin predominantly because of the revenue mix
and leverage effect of higher sales, and proper containment of operating expenses helped to attain the growth in net profit. The Net
Operating Cash Flows (NOCFPS) and the Net Asset Value (NAV) per share increased to Tk. 34.8 and Tk. 86.8 in 2020-21 from Tk. 28.2
and Tk. 64.8 respectively, of the previous year.
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 2021
Year ended 30 June 2020
Amount in Taka
421,484,155
(121,785,501)
299,698,654
442,959,982
(41,125,560)
701,533,076
(47,000,640)
654,532,436
334,282,670
(90,471,845)
243,810,825
222,649,477
(23,500,320)
442,959,982
(41,125,560)
401,834,422
Dividend
The Board of Directors recommends 40% cash dividend i.e. Tk. 4.00 per share for the year ended 30 June 2021 to the Shareholders
subject to the approval of the Shareholders in the Annual General Meeting (AGM) of the Company.
158 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
Composition of Board of Directors
The Board of Directors is composed of:
Mr. Nazmul Hassan, MP : Chairman and Director
Mr. S. M. Rabbur Reza : Managing Director
Mr. Mohammad Ali Nawaz : Director
Mr. Md. Golam Yahia : Nominee Director, Ministry of Industries
Prof. Mamtaz Uddin Ahmed : Independent Director
Retirement and Re-Election of Director
Mr. Mohammad Ali Nawaz, Director of the Company retires by rotation as per Article 125 and 126 of the Articles of Association of
the Company and being eligible, offer himself for re-election as Director and is placed for approval by the shareholders in the AGM.
Auditors
The existing auditors A. Qasem & Co., Chartered Accountants, who were appointed as auditors of the Company in the 46th AGM of
the Company carried out the audit for the year ended 30 June 2021.
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 2022 subject to the approval of the shareholders in the 47th 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 2022.
On behalf of the Board,
Nazmul Hassan, MP
Chairman
18 October 2021
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 159
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 2021, 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 2021, and
its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the
Companies Act 1994 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
— Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
160 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
-— Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that gives a true and fair view.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, we also report the following:
(a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our
audit and made due verification thereof;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination of
those books; and
(c) the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in agreement
with the books of account and returns.
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration No.: 2-PC7202
Mohammad Motaleb Hossain, FCA
Enrolment Number: 0950
DVC: 2110270950AS148231
Dhaka, 18 October 2021
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 161
Nuvista Pharma Limited
Statement of financial position
As at 30 June 2021
Notes
30 June 2021
ASSETS
Non-current assets
Property, plant and equipment
Capital work-in-progress
Intangible assets
Total non-current assets
Current assets
Inventories
Trade receivables
Loans, advances and deposits
Cash and cash equivalents
Total current assets
Total assets
EQUITY AND LIABILITIES
Shareholders’ equity
Share capital
Reserves and surplus
Total equity
Non-current liabilities
Lease liabilities - long term portion
Long term bank borrowings
Gratuity payable
Deferred tax liabilities
Total non-current liabilities
Current liabilities
Lease liabilities - current portion
Short term bank borrowings
Trade payables
Liabilities for expenses
Income tax payable
Other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
4
5
6
7
8
9
10
11
12
13
14
15
16
13
17
18
19
20
21
Amount in Taka
30 June 2020
1,144,501,502
180,908
—
1,144,682,410
456,155,729
111,672,826
45,959,627
18,976,993
632,765,175
1,094,483,583
13,167,670
14,498,907
1,122,150,160
488,258,898
68,992,110
62,372,394
27,506,945
647,130,347
1,769,280,507
1,777,447,585
117,501,600
902,470,740
1,019,972,340
—
—
148,113,060
117,591,532
265,704,592
—
166,074,847
146,680,936
96,229,644
2,064,899
72,553,249
483,603,575
749,308,167
1,769,280,507
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
115,882,471
106,386,071
22,737,718
57,042,842
745,694,434
1,016,048,339
1,777,447,585
The annexed notes 1 to 35 form an integral part of these financial statements.
Nazmul Hassan
Chairman
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
As per our report of same date
Dhaka, 18 October 2021
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration No.: 2-PC7202
Mohammad Motaleb Hossain, FCA
Enrolment Number: 0950
DVC: 2110270950AS148231
162 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
Nuvista Pharma Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
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 2021
22
23
24
25
26
27
20
16
2,572,104,337
(1,238,556,183)
1,333,548,154
(104,244,983)
(773,583,577)
455,719,594
3,648,109
(16,809,340)
442,558,363
(21,074,208)
421,484,155
(136,132,679)
14,347,178
(121,785,501)
299,698,654
—
Amount in Taka
30 June 2020
2,073,588,946
(966,727,371)
1,106,861,575
(92,526,184)
(608,640,157)
405,695,234
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
—
Total comprehensive income for the year
299,698,654
243,810,825
Earnings Per Share (EPS)
25.51
20.75
The annexed notes 1 to 35 form an integral part of these financial statements.
As per our report of same date
Nazmul Hassan
Chairman
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
As per our report of same date
Dhaka, 18 October 2021
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration No.: 2-PC7202
Mohammad Motaleb Hossain, FCA
Enrolment Number: 0950
DVC: 2110270950AS148231
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 163
Nuvista Pharma Limited
Statement of changes in equity
For the year ended 30 June 2021
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 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
Number of shares
Net assets value per share
Balance as at 1 July 2020
Dividend paid
117,501,600
7,511,991
30,844,170
243,737
162,337,766
442,959,982
643,897,646
761,399,246
(41,125,560)
(41,125,560)
(41,125,560)
11,750,160
64.80
Profit after tax for the year ended 30 June 2021
—
—
—
—
—
299,698,654
299,698,654
299,698,654
Balance as at 30 June 2021
117,501,600
7,511,991
30,844,170
243,737
162,337,766
701,533,076
902,470,740
1,019,972,340
Notes
11
12
12.1
12
12.2
12
12
Number of shares
Net assets value per share
The annexed notes 1 to 35 form an integral part of these financial statements.
11,750,160
86.80
164 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
Nuvista Pharma Limited
Statement of cash flows
For the year ended 30 June 2021
A.
Cash flows from operating activities
Cash receipts from customers and others
Cash paid to suppliers and employees
Cash generated from operation
Interest paid
Income tax paid
Net cash generated from operating activities
B.
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
C.
Cash flows from financing activities
Notes
30 June 2021
30 June 2020
Amount in Taka
2,618,368,138
1,994,406,632
(2,033,598,933)
(1,563,184,360)
584,769,205
(19,577,082)
(156,805,498)
408,386,625
431,222,272
(54,587,576)
(44,966,705)
331,667,991
19 & 27
20
(56,789,046)
(14,870,674)
80,133
(19,011,295)
—
74,250
(71,579,587)
(18,937,045)
Proceeds from/(payment to) long term bank borrowings
Proceeds from/(payment to) short term bank borrowings
Payment for lease liability
Dividend paid
14
17
13
(36,034,605)
(244,755,891)
(6,446,333)
(41,040,257)
(38,459,361)
(257,170,269)
(2,826,903)
(23,450,146)
Net cash (used in)/from financing activities
(328,277,086)
(321,906,679)
D. Net increase/(decrease) in cash and cash equivalents (A+B+C)
E. Opening cash and cash equivalents
F. Closing cash and cash equivalents (D+E)
8,529,952
18,976,993
27,506,945
(9,175,733)
28,152,726
18,976,993
Net operating cash flow per share
34.76
28.23
Number of shares
11,750,160
11,750,160
The annexed notes 1 to 35 form an integral part of these financial statements.
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 165
Nuvista Pharma Limited
Notes to the financial statements
As at and for the year ended 30 June 2021
1. Reporting entity
1.1 Nuvista Pharma Limited (“the Company”) was originally a subsidiary of Netherlands-based Organon International. The Company has
been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. In the post-independent Bangladesh, it was
incorporated as Organon (Bangladesh) Limited under Bangladesh Companies Act as a private limited company. Following the divestment
of Oraganon’s equity to the local management in 2006, the Company was renamed as Nuvista Pharma Limited. In 2011, the Company,
through amendments to its Memorandum and Articles of Association, became a public Limited Company under the Companies Act 1994.
In 2018, Beximco Pharmaceuticals Limited, a public limited company listed with Bangladesh Stock Exchanges and AIM of London Stock
Exchange, acquired majority shareholdings in Nuvista Pharma Limited. Beximco Pharma, through this acquisition, became the immediate
and ultimate parent of Nuvista Pharma with 85.22% of Nuvista’s equity. Government of Bangladesh holds 12.92% shares of the Company
while the rest is held by other local shareholders.
1.2 The registered office of the Company is located at 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,
gastrointestinal, musculoskeletal, respiratory, vitamin & mineral supplement and women’s health products which are sold in the domestic
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.
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except revaluation of certain property, plant and equipment.
2.3 Functional and presentational currency
These financial statements are prepared in Bangladeshi Taka (Taka/Tk.), which is the Company’s functional currency. All financial information
has been presented in Taka and rounded off to the nearest integer.
2.4 Use of estimates and judgments
The preparation of financial statements requires management to make judgment, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an on going basis.
2.5 Going concern
The Company has adequate resources to continue its operation for the foreseeable future. For this reason the directors continue to adopt
going concern basis in preparing the financial statements. The current resources and credit facilities of the Company are sufficient to meet
the present requirements of its existing business.
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 2020 to 30 June 2021.
166 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
3.1 Share capital
Share 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.
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 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 contract does not meet the criteria of lease as defined under IFRS 16.
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.
Subsequent to the Balance Sheet date the Company has initiated the process to convert the unfunded gratuity scheme to funded gratuity.
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 and
is funded by contributions from employees and from the Company @ 10% of the basic pay. These contributions are invested separately
from the Company’s business.
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.
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 167
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 Intangible assets
Intangible assets represent rights, titles and assigned trademark. Acquired intangible asset is initially capitalised at cost which includes the
purchase price and other directly attributable costs. It is subsequently carried at cost less accumulated amortization and any accumulated
impairment losses. Amortisation is calculated to write off the cost of intangible assets using the straight-line method over its estimated
useful life.
3.7 Impairment
3.7.1 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 2021.
3.7.2 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.
3.7.3 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 2021.
3.8 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.
168 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
3.9 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.
3.9.1 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.
3.9.2 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.
3.10 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.
3.11 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.
3.12 Foreign currency
3.12.1 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.
3.12.2 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.
3.12.3 Translation gains and losses
Foreign exchange difference arising on translation are recognised in the Statement of profit or loss and other comprehensive income.
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 169
3.13 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.
3.14 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.
3.15 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.
3.16 Workers’ Profit Participation Fund (WPPF)
The Company provides 5% of its net profit before tax (after charging such expense) as WPPF in accordance with Bangladesh Labour Act
2006.
3.17 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 2023. This
standard, however, has no material issue that might affect the reported financial statements of the Company.
3.18 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.
3.19 General
Previous year’s figures have been rearranged/reclassified wherever considered necessary to conform to current year’s presentation.
170 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
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 2020
Addition/transfer during the year
Adjustment/disposal
As at 30 June 2021
Accumulated depreciation
As at 1 July 2020
Charge during the year
Adjustment/disposal
As at 30 June 2021
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
—
—
2,391,184
2,157,644
17,558,672
—
1,421,458
16,210,165
3,160,729
42,899,852
—
—
(1,798,461)
(1,334,800)
(1,941,620)
—
—
(5,074,881)
275,608,713
239,181,778
20,351,322
496,417,215
144,221,980
30,516,567
701,843,238
52,542,945
1,960,683,758
—
54,201,286
3,913,221
194,701,848
115,701,140
24,533,963
359,058,528
26,247,299
778,357,285
—
—
5,932,272
485,511
23,157,451
16,000,885
3,685,911
41,248,709
2,391,922
92,902,661
—
—
(1,798,453)
(1,319,712)
(1,941,606)
—
—
(5,059,771)
—
60,133,558
4,398,732
216,060,846
130,382,313
26,278,268
400,307,237
28,639,221
866,200,175
As at 30 June 2021
275,608,713
179,048,220
15,952,590
280,356,369
13,839,667
4,238,299
301,536,001
23,903,724
1,094,483,583
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
4.1 Depreciation charge has been allocated as under
Factory overhead included in cost of goods sold (Note 23.3)
General and administration expenses (Note 24)
Selling and distribution expenses (Note 25)
4.2 Disclosure for revalued assets
30 June 2021
30 June 2020
73,241,118
2,938,395
16,723,148
92,902,661
80,197,666
2,996,619
12,802,897
95,997,182
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.
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 171
5. Capital work-in-progress
Factory Building
Factory Warehouse
Plant and machinery
Furniture
Equipment & Electric fixture and fittings
Computer and IT equipment
6. Intangible assets
Cost
Balance as at 1 July
Addition during the year
Balance as at 30 June
Amortization
Balance as at 1 July
Amortized during the year
Balance as at 30 June
Net carrying value as at 30 June
As at
1 July
2020
180,908
180,908
Addition
during
the year
2,391,184
2,157,644
29,043,335
3,160,729
17,712,264
1,421,458
55,886,614
Transfer to
property, plant
and equipment
2,391,184
2,157,644
17,558,672
3,160,729
16,210,165
1,421,458
42,899,852
Amount in Taka
As at
30 June
2021
—
—
11,665,571
—
1,502,099
—
13,167,670
Amount in Taka
30 June 2021
30 June 2020
—
14,870,674
14,870,674
—
371,767
371,767
14,498,907
—
—
—
—
—
—
—
This represents rights, titles and assigned trademark of ovestin brand purchased from Merck Sharp & Dohme B. V., the Netherlands on 1
April 2021 and is amortized over 10 years.
7. Inventories
Stocks
Finished goods
Semi-finished and Work-in-process
Raw materials
Chemicals
Packing materials
Materials-in-transit
Stores
Spares and accessories
Laboratory consumables
Literature, brochure and other materials
Spares-in-transit
172 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
111,155,804
57,816,825
227,201,449
20,787,896
30,462,560
1,544,922
448,969,456
8,458,918
299,097
30,436,948
94,479
39,289,442
156,163,823
44,419,416
134,288,819
25,896,599
38,633,826
16,928,409
416,330,892
9,928,538
313,561
29,150,832
431,906
39,824,837
488,258,898
456,155,729
8. Trade receivables
Ageing of the trade receivables is as follows:
Receivables due over six months
Receivables due below six months
Above receivables are unsecured and considered good.
Trade receivables is net off provision for bad debts Tk. 1,884,860.
9. Loans, advances and deposits
Car loan
General loan
Advance against operating expenses
Security deposits
VAT
Prepaid insurance
LC margin
Others
10. Cash and cash equivalents
Cash in hand
Cash at banks
Eastern Bank Limited
The City Bank Limited
Dhaka Bank Limited
IFIC Bank Limited
Shimanto Bank Limited
Janata Bank Limited
National Bank Limited
30 June 2021
Amount in Taka
30 June 2020
2,588,327
66,403,783
68,992,110
3,427,476
108,245,350
111,672,826
10,931,774
1,756,172
1,588,959
3,483,184
24,696,302
5,389,765
14,120,004
406,234
62,372,394
4,346,942
1,920,061
892,511
6,580,740
21,594,507
5,261,738
4,265,999
1,097,129
45,959,627
115,867
100,468
75,189
520,407
655
19,945,406
33,240
6,627,594
188,587
27,391,078
27,506,945
64,569
415,483
655
13,559,470
28,160
4,493,168
315,020
18,876,525
18,976,993
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 173
Amount in Taka
30 June 2021
30 June 2020
11.Share capital
Authorised
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
117,501,600
117,501,600
11,750,160
Shareholding position
Beximco Pharmaceuticals Limited
Government of Bangladesh
Other shareholders
Nominal value (Taka)
Percentage of holding (%)
30 June 2021
30 June 2020
30 June 2021
30 June 2020
100,134,740
100,134,740
15,186,000
2,180,860
15,186,000
2,180,860
117,501,600
117,501,600
85.22
12.92
1.86
100
85.22
12.92
1.86
100
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
30 June 2021
30 June 2020
7,511,991
30,844,170
243,737
162,337,766
701,533,076
902,470,740
7,511,991
30,844,170
243,737
162,337,766
442,959,982
643,897,646
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.
174 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
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)
14.1 Dhaka Bank Limited
30 June 2021
Amount in Taka
30 June 2020
—
—
—
1,531,045
4,915,288
6,446,333
—
—
—
36,034,605
(31,283,549)
4,751,056
Term loans financed by Dhaka Bank Limited for setting up the new Oral Solids facility and equipment at the factory which was fully
repaid in current year.
14.2 Collateral
All loans are secured by a registered mortgage on specific factory land and buildings of the Company.
14.3 Security
The loan is secured by hypothecation of fixed and floating assets of the Company including plant and machinery, equipment, furniture and
fixture, inventories and receivables. Additionally, there is a corporate guarantee issued by Beximco Pharmaceuticals Limited.
15. 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
128,748,851
29,392,589
—
158,141,440
(10,028,380)
148,113,060
106,585,224
22,766,607
12,455,838
141,807,669
(13,058,818)
128,748,851
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 175
16. Deferred tax liabilities
Deferred tax liabilities arrived at as follows:
Year: 2020-2021
Property, plant and equipment
Gratuity payable
Allowance for expected credit loss
Temporary difference
Carrying amount
on statement of
financial position
date
Tax base
818,874,870
372,397,981
(148,113,060)
(1,884,860)
—
—
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
Year: 2019-2020
Property, plant and equipment
Gratuity payable
Allowance for expected credit loss
Temporary difference
Carrying amount
on statement of
financial position
date
Tax base
868,892,789
420,915,448
(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(b):
Deferred tax Liabilities on revaluation surplus
Net deferred tax liabilities
Amount in Taka
Taxable/
(deductible)
temporary
difference
446,476,889
(148,113,060)
(1,884,860)
296,478,969
30.0%
15.0%
(88,943,691)
(28,647,841)
(117,591,532)
Taxable/
(deductible)
temporary
difference
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)
Deferred tax recognised in the statement of profit or loss and other comprehensive income in 2020-2021 (a-b)
14,347,178
Deferred tax recognised in the statement of profit or loss and other comprehensive income in 2019-2020
12,913,693
176 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
17. Short term bank borrowings
Bank overdrafts
Dhaka Bank Limited (Limit Tk. 200,000,000)
22,608,979
77,213,282
Amount in Taka
30 June 2021
30 June 2020
Short term bank loans
Dhaka Bank Limited
Current portion of long term loan (Note 14)
143,465,868
333,617,456
—
166,074,847
31,283,549
442,114,287
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% per annum and is payable on quarterly rests.
18. Trade payables
Trade payables
This represents amount due against purchase of raw, chemical and packing materials.
19. Liabilities for expenses
Accrued expenses
Audit fees
Accrued interest
20. Income tax payable
146,680,936
146,680,936
115,882,471
115,882,471
94,915,558
400,000
914,086
96,229,644
102,329,243
375,000
3,681,828
106,386,071
Balance as at 1 July
Add: Provision for the year
Less: AIT and treasury deposits during the year
Balance as at 30 June
22,737,718
136,132,679
(156,805,498)
2,064,899
(35,681,115)
103,385,538
(44,966,705)
22,737,718
21. Other liabilities
Salary and allowances
Provident fund dues
Workers’ profit participation fund
Tax deducted at source
Net VAT payable
Tax on salaries
Final settlement of staff
Commission payable
Unpaid dividend
4,531,928
3,200,879
21,074,208
1,317,699
22,136,988
1,921,355
3,371,107
14,631,227
367,858
72,553,249
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
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 177
22. Revenue
Net sales revenue
Toll income
Quantitative details of sales
July 2020-June 2021
July 2019-June 2020
Amount in Taka
2,505,836,903
66,267,434
2,572,104,337
2,003,012,715
70,576,231
2,073,588,946
Unit
Tabs
Caps
Amps & Suspensions
Bottles
Quantity
710,009,655
39,326,286
14,050,488
3,319
Quantity
378,685,916
32,207,937
13,145,696
—
23. Cost of goods sold
Opening stock of finished goods
Purchases (imported and processed products)
Cost of production (Note 23.1)
Cost of goods available for sale
Cost of physician sample
Closing stock of finished goods
23.1 Cost of production
Opening stock of semi-finished and WIP
Materials consumed (Note 23.2)
Factory overhead (Note 23.3)
Closing stock of semi-finished and WIP
156,163,823
9,718,528
1,194,139,965
1,360,022,316
(10,310,329)
(111,155,804)
1,238,556,183
44,419,416
679,919,902
527,617,472
1,251,956,790
(57,816,825)
1,194,139,965
99,377,976
—
1,031,507,041
1,130,885,017
(7,993,823)
(156,163,823)
966,727,371
35,395,067
563,093,775
477,437,615
1,075,926,457
(44,419,416)
1,031,507,041
178 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
23.2 Materials consumed
Opening stock
Purchase
Closing stock
Item wise quantity and value of finished goods stock are as follows :
Unit
pcs.
pcs.
pcs.
Unit
pcs.
pcs.
pcs.
pcs.
Stock as June 30, 2020
Tabs
Caps
Amps & Suspensions
Stock as June 30, 2021
Tabs
Caps
Amps & Suspensions
Bottle
23.3 Factory overhead
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)
July 2020-June 2021
July 2019-June 2020
Amount in Taka
198,819,244
759,552,563
(278,451,905)
679,919,902
163,711,619
598,201,400
(198,819,244)
563,093,775
Quantity
Value (Taka)
59,388,662
11,548,926
1,416,442
89,677,866
42,908,358
23,577,599
156,163,823
Quantity
Value (Taka)
34,666,898
5,765,220
1,270,207
40,430
189,823,190
68,737,787
32,904,388
1,561,254
11,833,646
4,894,538
42,563,382
2,255,598
5,830,110
48,681,459
32,127,613
—
2,635,882
1,529,366
1,555,172
4,000,941
860,740
2,581,288
73,241,118
527,617,472
62,743,742
18,016,722
21,417,183
8,978,157
111,155,804
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. 2,203,286.
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 179
24. General and administration expenses
July 2020-June 2021
July 2019-June 2020
Amount in Taka
Salaries and allowances
Directors’ fees (Note 29)
Office rent
Overseas travelling expenses
Local travelling expenses
Entertainment
Vehicle repair, maintenance and running cost
Postage, telephone, cell phone 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
Other expenses
Depreciation (Note 4.1)
60,785,836
288,000
11,454,000
—
1,315,151
957,635
4,216,010
2,104,339
1,078,461
1,909,231
1,376,625
3,959,299
2,227,649
3,599,911
979,950
296,152
207,495
400,000
145,000
2,042,333
1,963,511
2,938,395
104,244,983
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
Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 1,151,006.
180 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
25. Selling and distribution expenses
Salaries and allowances
Overseas travelling expenses
Local travelling expenses
Entertainment
Samples
Sales promotion expenses
Brand development
Product launch expenses
Sales force logistic
Employee welfare
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, cell phone and internet
Printing and stationery
Medical expenses
Training expenses
Market survey and research
Registration and renewals
Insurance premium
Office rent
Bad debts
Utilities
Other expenses
Amortization of intangible assets
Depreciation (Note 4.1)
July 2020-June 2021
July 2019-June 2020
Amount in Taka
323,220,113
—
90,892,048
2,458,196
14,743,772
17,364,964
6,194,559
9,769,607
19,493,038
2,227,756
6,842,995
2,940,561
28,742,584
33,548,922
139,631,437
7,881,573
4,367,730
5,450,647
7,395,170
11,719,697
1,627,733
2,017,261
3,041,832
636,800
1,204,835
2,711,887
7,728,900
474,431
1,034,923
1,124,691
371,767
16,723,148
773,583,577
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
Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 8,102,350.
26. Non-operating income
Gain on disposal of property, plant and equipment
Rental income
Sale of miscellaneous items
Forfeited PF refund (Note: 26.1)
26.1 Forfeited PF refund
65,024
866,400
582,907
2,133,778
3,648,109
24,692
866,400
283,048
—
1,174,140
In compliance with the FRC circular number 179/FRC/FRM/Notification/2020/2, dated 07 July 2020, the Company has recovered the
forfeited provident fund from the Provident Fund Trust.
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 181
27. Interest expenses
Interest on
Long term loan
Short term finance
Finance lease
Bank charges
28. Capacity utilisation
Amps & Suspensions
Tablet
Capsule
July 2020-June 2021
July 2019-June 2020
Amount in Taka
688,716
15,004,354
372,272
743,998
16,809,340
Actual
production
Unit
13,257,582
646,357,034
37,359,176
13,290,514
40,691,103
921,123
969,830
55,872,570
Actual
Utilisation
%
67%
49%
67%
Installed
capacity
Unit
19,822,400
1,322,390,400
56,044,880
29. Remuneration and fees to directors
This relates to Board meeting attendance fee paid to Directors.
30. Payments made in foreign currency
Particulars
July 2020-June 2021
July 2019-June 2020
Foreign currency
(Equivalent USD)
Taka
Taka
Import of raw, chemicals and packing materials
Import of machinery and spare parts
6,095,178
437,516
521,323,600
37,381,755
558,705,355
359,506,535
13,228,851
372,735,386
31. Related party disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of related party
Relationship
Nature of transactions
Value of
transaction
Balance at
year end
Transaction
Type
Beximco Pharmaceuticals Limited
Immediate and
ultimate parent
Toll income
27,882,074
1,379,979
Royalty expenses
28,742,584
5,875,790
Cost of services
56,571,923
4,449,651
Dividend paid
35,047,159
—
Distribution commission
139,631,437
14,631,227
Dr.
Cr.
Cr.
Cr.
182 | Financial Statements- Nuvista Pharma Limited | Annual Report 2020-21
32. Capital expenditure commitment
There was no capital expenditure contracted but not incurred or provided for at 30 June 2021.
33. Contingent liabilities
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. If any liability arises on disposal of the cases, the Company shall provide
for such liability in the year of disposal.
34. Number of employees engaged
The number of employees engaged for the whole period or part thereof who received a total remuneration of Tk. 36,000 and above were 1,281
(June 2020: 1,142).
35. Events after reporting date
The Board in its meeting dated 18 October 2021 recommended that 40% cash dividend i.e. Tk. 4.00 per share, totalling Tk. 47,000,640 be paid
for the year 2020-21. The dividend proposal is subject to shareholders’ approval at the forthcoming annual general meeting.
Nazmul Hassan
Chairman
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Annual Report 2020-21 | Financial Statements- Nuvista Pharma Limited | 183
Financial Statements
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, 2021 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 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. Because of extended
effect of Covid-19 Pandemic this process got delayed and yet to be completed. Moreover, the volatility in the global API market has created some
nervousness among the API manufacturers. That is why we have decided to go slow cautiously to avoid any mistake. The project decision has been
intentionally put on hold at this moment due to said reason.
Once the situation normalizes, project will start rolling again. We shall keep you updated of further development in due course.
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
Mamtaz Uddin Ahmed, 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 2021. 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 2021-22. 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 2021-
22.
On behalf of the Board
Chairman
Annual Report 2020-21 | Financial Statements- Beximco Pharma API Limited | 185
Independent Auditor’s Report
To the Shareholders of Beximco Pharma API Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Beximco Pharma API Limited, which comprise the statement of financial position as at 30 June 2021,
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 30 June 2021 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 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 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 to
186 | Financial Statements- Beximco Pharma API Limited | Annual Report 2020-21
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
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110280564AS311814
Annual Report 2020-21 | Financial Statements- Beximco Pharma API Limited | 187
Beximco Pharma API Limited
Statement of Financial Position
As at June 30, 2021
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 and Provisions
Short Term Advance
Creditors and Other Payables
Audit Fees Payable
Amount in Taka
Notes
June 30, 2021
June 30, 2020
4
5
20,000,000
20,000,000
20,000,000
20,000,000
55,080
55,080
94,685
94,685
20,055,080
20,094,685
18,201,924
20,000,000
(1,798,076)
1,853,156
679,830
1,153,326
20,000
18,376,999
20,000,000
(1,623,001)
1,717,686
544,360
1,153,326
20,000
TOTAL EQUITY AND LIABILITIES
20,055,080
20,094,685
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date.
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110280564AS311814
188 | Financial Statements- Beximco Pharma API Limited | Annual Report 2020-21
Beximco Pharma API Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2021
Revenue
Cost of Revenue
Gross Profit/(Loss)
Administrative Expenses
Profit/(Loss) from Operations
Income Tax Expense
Net Profit/(Loss) after Tax
Other Comprehensive Income
Amount in Taka
Notes
July 2020 - June 2021
July 2019 - June 2020
6
—
—
—
(175,075)
(175,075)
—
(175,075)
—
—
—
(485,200)
(485,200)
—
(485,200)
—
—
Total Comprehensive Income/(Loss) for the Year
(175,075)
(485,200)
Earnings Per Share
(0.09)
(0.24)
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date.
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110280564AS311814
Annual Report 2020-21 | Financial Statements- Beximco Pharma API Limited | 189
Beximco Pharma API Limited
Statement of Changes in Equity
For the Year ended June 30, 2021
As at June 30, 2021
Amount in Taka
Particulars
Share Capital
Retained Earnings
Total
Balance as on July 01,2020
Net Loss for the Year
Balance as on June 30, 2021
Number of Shares
Net Assets value per shares
As at June 30, 2020
20,000,000
—
(1,623,001)
(175,075)
20,000,000
(1,798,076)
18,376,999
(175,075)
18,201,924
2,000,000
9.10
Particulars
Share Capital
Retained Earnings
Total
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
20,000,000
20,000,000
(1,137,801)
(485,200)
(1,623,001)
18,862,199
(485,200)
18,376,999
2,000,000
9.19
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date.
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110280564AS311814
190 | Financial Statements- Beximco Pharma API Limited | Annual Report 2020-21
Beximco Pharma API Limited
Statement of Cash Flows
For the Year ended June 30, 2021
Cash Flows from Operating Activities:
Cash receipts from customers and others
Payments for expenses & others
Net Cash Generated / (Used in) From Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Increase/(Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Net Operating Cash Flows Per Share
The Notes are an integral part of the Financial Statements.
Amount in Taka
July 2020 - June 2021
July 2019 - June 2020
135,470
(175,075)
(39,605)
—
—
(39,605)
94,685
55,080
(0.02)
544,360
(485,200)
59,160
—
—
59,160
35,525
94,685
0.03
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date.
Dhaka
October 21, 2021
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2110280564AS311814
Annual Report 2020-21 | Financial Statements- Beximco Pharma API Limited | 191
Beximco Pharma API Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2021
1. Reporting Entity
1.01 Statutory Background of the Company
Beximco Pharma API Limited was incorporated in Bangladesh on 12 December, 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, 2021;
b) Statement of Profit or Loss and other Comprehensive Income for the year ended June 30, 2021;
c) Statement of Changes in Shareholders’ Equity for the year ended June 30, 2021;
d) Statement of Cash Flows for the year ended June 30, 2021 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, 2020 to June 30, 2021.
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.
192 | Financial Statements- Beximco Pharma API Limited | Annual Report 2020-21
4. Cash and Cash Equivalents
This represents Cash at Bank with Current Account (IFIC Bank Limited, Dhanmondi Branch)
55,080
94,685
June 30, 2021
Amount in Taka
June 30, 2020
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
Number of Shares
6. Administrative Expenses
Legal Expenses
Audit Fees
Bank Charges
Entertainment
Other Expenses
S.M. Rabbur Reza
Managing Director
Dhaka
October 21, 2021
55,080
94,685
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 2020 - June
2021
July 2019 - June
2020
30,890
20,000
1,185
—
123,000
175,075
—
20,000
840
328,460
135,900
485,200
Mohammad Ali Nawaz
Director
Annual Report 2020-21 | Financial Statements- Beximco Pharma API Limited | 193
Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
NOTICE OF THE 45TH ANNUAL GENERAL MEETING
Notice is hereby given that the 45th Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held under Virtual
Platform on Thursday, the 23rd December, 2021 at 10.30 a.m. to transact the following business:
AGENDA
1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended on 30th June, 2021 together with
reports of the Auditors and the Directors thereon.
2. To declare 35% cash dividend.
3. To elect Directors.
4. To approve the appointment of Independent Director.
5. To appoint Auditors for the year 2021-22 and to fix their remuneration.
6. To appoint Corporate Governance Compliance Auditors for the year 2021-22 and to fix their remuneration.
By order of the Board,
Dated: November 15, 2021
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. 22
November, 2021, 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 2020-21 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
into 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 .
194 | Notice of Annual General Meeting | Annual Report 2020-21
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 45th
Annual General Meeting of the Company to be held on Thursday, 23rd December, 2021 at 10.30 a.m. under virtual platform and at
any adjournment thereof.
As witness my hand this……………………………..day of December, 2021.
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
…………………………………
Annual Report 2020-21 | Proxy Form | 195
www.beximcopharma.com
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