ANNUAL REPORT | 2021-22
BEXIMCO PHARMACEUTICALS LIMITED
BEXIMCO PHARMACEUTICALS LIMITED
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ANNUAL REPORT
2021-22
BEXIMCO PHARMACEUTICALS LIMITED
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“Beximco Pharma aspires to become a globally admired
generic pharmaceutical company, committed to
enhancing human health and life.”
Contents
About Us
The Company
Purpose
Journey
Subsidiaries
Products
Markets
Manufacturing Capabilities
Research and Development
Global Accreditations
Board and Management
Board and Board Committees
Profi le of Directors
Executive Committee
Management Committee
Performance Highlights
Financial
Operational
Value Addition
Accolades and Awards
Corporate Events and CSR
Corporate Events
CSR Initiatives
Environment, Health, and Safety
Human Resources
Work and Culture
Training and Development
Board and Management Report
Chairman’s Statement
Report of the Managing Director
Report of the Directors
Report of the Audit Committee
Report on the Activities of NRC
Investor Relations
Financial Statements
Beximco Pharmaceuticals Ltd. and
Its Subsidiaries (Consolidated)
Beximco Pharmaceuticals Limited (Stand-alone)
Nuvista Pharma Limited
Synovia Pharma PLC.
Beximco Pharma API Limited
Notice of Annual General Meeting
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About Us
4 | The Company | Annual Report 2021-22
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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. Beximco Pharma began manufacturing of these products
under licensing arrangement in 1980 and launched its own formulation brands in 1983. From that humble
beginning, it has grown from strength to strength. Today, Beximco Pharma 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. Leveraging its state-of-the-art manufacturing
facilities and research capabilities the Company earned its name as an admired manufacturer of high-
quality generic medicines. The Company’s manufacturing facilities have been accredited by the leading
global regulatory authorities. Beximco Pharma exports its medicines to more than 50 countries including the
highly regulated markets of USA, Europe, Canada, and Australia.
Beximco Pharma has received recognitions from different national and global organizations for its excellence,
innovation and performance. The Company for its commendable contribution in pharmaceutical export
won the National Export (Gold) trophy for 6 times. It is also 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 Pacifi c”), CPhI Pharma Awards 2020 (“Innovation in Response to COVID-19”),
and Global Generics & Biosimilar Awards 2021 (“The Company of the Year, Asia Pacifi c”). Beximco Pharma’s
acquisition of Sanofi Bangladesh Limited in 2021 helped it win the Global Generics & Biosimilar Awards 2022
(“Acquisition of the Year”).
Beximco Pharma is listed with Dhaka and Chittagong stock exchanges of Bangladesh and the Alternative
Investment Market (AIM) of London Stock Exchange.
The Company holds 85.2% ownership in Nuvista Pharma Limited (formerly Organon Bangladesh), a leading
non-listed Bangladeshi pharmaceutical company specializing in hormone and steroid drugs. In October 2021,
It acquired majority stake (54.6%) in Sanofi Bangladesh Limited from Sanofi Group represented through May
& Baker Limited and Fisons Limited. The company was subsequently renamed as Synovia Pharma PLC.
Beximco Pharma as a group employs more than 7,000 full time employees including professionals like
pharmacists, doctors, engineers, chemists, microbiologists, accountants, lawyers, information technology
specialists, and graduates from other disciplines.
Annual Report 2021-22 | The Company | 5
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6 | The Company | Annual Report 2021-22
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Corporate Information
Registered Office
17 Dhanmondi, Road No. 2
Dhaka- 1205, Bangladesh
Phone: +880-2-58611891
Fax: +880-2-58613470
Factory
Tongi Plant
126 Kathaldia, Auchpara, Tongi
Gazipur, Bangladesh
Stock Exchange Listing
Dhaka Stock Exchange
Chittagong Stock Exchange
AIM of London Stock Exchange
Legal Advisor
Hoque & Associates
House No. 11, Suite No. 201
Road No. 108, Gulshan-2
Dhaka-1212, Bangladesh
Subsidiaries
Nuvista Pharma Limited
Mascot Plaza, 8th Floor
107/A, Sonargaon Janapath; Sector- 7
Uttara C.A, Dhaka - 1230, Bangladesh
Factory
48, Tongi Industrial Area
Tongi, Gazipur
Associates
BioCare Manufacturing Sdn Bhd
Seri Iskandar Pharmaceutical Park
32600 Bota, Perak, Malaysia
Operational Headquarters
19 Dhanmondi, 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
Auditors
M. J. Abedin & Co.
Chartered Accountants
National Plaza (3rd Floor),
109, Bir Uttam C. R. Datta Road
Dhaka- 1205, Bangladesh
Synovia Pharma PLC.
6/2/A Segun Bagicha,
Dhaka-1000, Bangladesh
Factory
Station Road
Tongi, Gazipur
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 2021-22 | The Company | 7
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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.
8 | Purpose | Annual Report 2021-22
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Purpose
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 defi ne 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 benefi t 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 2021-22 | Purpose | 9
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Journey
1976
1980
1983
1985
1993
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
Commenced
formulation product
export to Russia
Commenced first
time export to
Europe
(cid:129) GMP accreditation
from Taiwan Food &
Drug Administration
(TFDA) and
Health Canada
(cid:129) Commenced export
to Australia
2013
2014
(cid:129) GMP approval from
the U.S. FDA as the
first Bangladeshi
company
(cid:129) Launched generic
version of revolutionary
hepatitis C drugs
Sovaldi® and Harvoni®
(cid:129) Entered the Gulf
pharma market
(Kuwait)
2015-16
(cid:129) Commenced
export to the USA
(cid:129) First overseas
collaboration with
BioCare
Manufacturing Sdn
Bhd, Malaysia
2016-17
(cid:129) Won the Scrip Award
in the category of “Best
Company in an
Emerging Market”
(cid:129) Oral solid dosage
facility received WHO
prequalification
(cid:129) Acquired 85.22%
stake in
Nuvista Pharma PLC.
2017-18
10 | Journey | Annual Report 2021-22
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2003
2005
2006
2008
2011
Introduced
anti-retroviral (ARV)
drugs first time in
Bangladesh
Got listed with the
Alternative Investment
Market (AIM) of London
Stock Exchange (LSE)
through issuance
of GDRs
Launched CFC free
HFA inhalers first time
in Bangladesh
(cid:129) GMP accreditation
from TGA, Australia
(cid:129) Gulf Central
Committee for Drug
Registration (GCC),
as the first
Bangladeshi
Company
Received GMP
accreditation from
AGES, Austria (for
European Union)
Won the Scrip Award
in the category of
‘‘Community
Partnership of the Year’’
2018-19
(cid:129) GMP approval from
German Regulatory
Authority and Malta
Medicines Authority
(European Union)
(cid:129) Global Generics &
Biosimilars Awards
2019 as “The Company
of the Year, Asia-Pacific”
(cid:129) Launched the world's
first generic remdesivir
2019-20
(cid:129) Became exclusive
distributor of Serum Institute
of India for AstraZeneca/
Oxford's Covishield vaccine
in Bangladesh (cid:129) Acquired
Sanofi Bangladesh Limited
(54.6% stake) (cid:129) CPhI Pharma
Award 2020 for“Innovation in
response to COVID-19”
(cid:129) “The Company of the Year,
Asia Pacific” at the Global
Generics and Biosimilar
Awards 2021
(cid:129) Launched the world's
first generic
molnupiravir
2020-21
(cid:129) Launched the
world’s first generic
version of Paxlovid
(Nirmatrelvir+Ritonavir)
(cid:129) Received Marketing
Authorizations for two
products in the UK
(cid:129) Global Generics &
Biosimilars Awards
2022 :“Acquisition
of the Year"
2021-22
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12 | Subsidiaries | Annual Report 2021-22
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Subsidiaries
Nuvista Pharma Limited (NPL)
Nuvista Pharma Limited 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 85.2% stake by Beximco Pharma in 2018, Nuvista Pharma became
the subsidiary of the Company.
Nuvista Pharma currently produces over 90 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, capsule and specialty products like hormone and steroid. The facilities
are accumulated in a multistoried building covering 126,408 sft fl oor area.
NPL employs over 1300 people of diverged skills, academic and professional backgrounds.
Annual Report 2021-22 | Subsidiaries | 13
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14 | Subsidiaries | Annual Report 2021-22
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Synovia Pharma PLC (SPP)
Synovia Pharma PLC (formerly Sanofi Bangladesh Limited) was part of global
biopharmaceutical company Sanofi S.A. before being taken over by Beximco Pharma in
2021. The company 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 SPP held by Sanofi Group represented
through May & Baker Limited and Fisons Limited. The remaining 45.4% is held by
Bangladesh Government through Bangladesh Chemical Industries Corporation (20%) and
Ministry of Industries (25.4%).
Synovia Pharma’s state-of-the-art manufacturing facilities, including a PIC/S certifi able
manufacturing facility for the leading antibiotic, cephalosporin, are spread over c25 acres
of land, located at Tongi, Gazipur. The plant operated by SPP 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.
Synovia Pharma has over 800 employees and produces approximately 100 branded generic
products. SPP has a strong presence in cardiology, diabetes, oncology, dermatology and
CNS. It also imports 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.
Annual Report 2021-22| Subsidiaries | 15
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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.
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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 fi lms,
suppositories etc. creating strong differentiation for the Company. Many of its brands remain consistent leaders in their respective
therapeutic categories. Napa, Napa Extra, Neofl oxin, 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 diffi cult 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
Paracetamol 500 mg
Suppository
Paracetamol 125 mg, 250 mg And 500 mg
CHILDREN'S
NAPA
Syrup
Paracetamol 120 mg / 5 ml
Suspension
Paracetamol 120 mg / 5 ml
NAPA IV
NAPA ONE
NAPA EXTRA
Drops
Injection
Tablet
Tablet
Paracetamol 80 mg / m
Paracetamol 10 mg / ml
Paracetamol 1000mg
Paracetamol 500 mg + Caffeine 65 mg
NAPA EXTEND
Tablet
Paracetamol 665 mg Extended Release
NAPADOL
NAPA RAPID
Joint Supplement JOINTEC MAX
Muscle Relaxant RELENTUS
NSAIDs DINOVO
VOLIGEL
XIDOLAC
BUFLEX
Oral Anti-Diabetic DIAPRO MR
DIARYL
GLIPITA
GLIPITA M
Tablet
Tablet
Tablet
Tablet
Tablet
Cream
Tablet
Meltab
Paracetamol 325 mg + Tramadol 37.5 mg
Paracetamol 500 mg (with Actizorb technology)
Glucosamine 750 mg + Diacerein 50 mg
Tizanidine 2 mg
Naproxen 375 mg + Esomeprazole 20 mg, Naproxen 500 mg +
Esomeprazole 20 mg
Diclofenac Sodium 50 mg
Ketorolac Tromethamine 10 mg
Ketorolac Tromethamine 10 mg
Injection
Ketorolac Tromethamine 30 mg / ml
Tablet
Tablet
Tablet
Tablet
Tablet
Nabumetone 500mg and 750mg
Gliclazide 30 mg MR, Gliclazide 60 mg MR
Glimepiride 1 mg, Glimepiride 2 mg, Glimepiride 3 mg
Sitagliptin 50 mg, Sitagliptin 100 mg
Sitagliptin 50 mg + Metfomin Hydrochloride 500 mg, Sitagliptin 50 mg
+ Metformin Hydrochloride 1000 mg
Annual Report 2021-22 | Products | 17
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Oral Anti-Diabetic GLIPITA M XR
TRANETA
TRANETA M
JARDIAN
JARDIMET
EMPALINA
VIBOSE
INFORMET
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
INFORMET XR
Tablet
Sitagliptin 50 mg + Metfomin Hydrochloride 500 mg XR, Sitagliptin 50
mg + Metformin Hydrochloride 1000 mg XR
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
Empaglifl ozin 10 mg, Empaglifl ozin 25 mg
Empaglifl ozin 5 mg + Metformin Hydrochloride 500 mg
Empaglifl ozin 10 mg+ Linagliptin 5 mg, Empaglifl ozin 25 mg+
Linagliptin 5 mg
Voglibose 0.2 mg, Voglibose 0.3 mg
Metfomin Hydrochloride 500 mg, Metformin Hydrochloride 850 mg,
Metformin Hydrochloride 1000 mg
Metfomin Hydrochloride 500 mg XR, Metformin Hydrochloride
750 mg XR
Insulin GENSULIN
SEMGLEE
Injection
Human Insulin 100 IU / ml Injection
Prefi eld Pen
Insulin Glargine 100IU/ML
REGLUTIDE
Injection
Semaglutide inn 1.34 mg/ml
Anti-Histamines ATRIZIN
AXODIN
DUVENT
BEXIDAL
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
Tablet
Rupatadine 10 mg
Rupatadine 5 mg / 5 ml
Mebhydrolin Napadisylate 50 mg
Bilastine 20 mg
MELTAB
Bilastine 10 mg
Oral Solution
Bilastine
Cough & Cold DEXTRIM
TUSPEL
BURATUSS
MUCOSOL
Anti-Hypertensives BIZORAN
Syrup
Syrup
Tablet
Syrup
Drops
Syrup
Drops
Tablet
OLMESAN
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
Butamirate Citrate 50 mg
Butamirate Citrate 7.5 mg/5 ml
Butamirate Citrate 5 mg/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
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
18 | Products | Annual Report 2021-22
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Anti-Hypertensives AMDOCAL PLUS Tablet
Tablet
CARNOVAS
Amlodipine 5 mg + Atenolol 25 mg, Amlodipine 5 mg + Atenolol 50 mg
Nebivolol 2.5 mg, Nebivolol 5 mg, Nebivolol 10 mg
CARNOVAS HZ
Tablet
Nebivolol 5 mg + Hydrochlorothiazide 12.5 mg
VIVANTA
BETAPRO
Tablet
Tablet
Sacubitril 24 mg+ Valsartan 26 mg, Sacubitril 49 mg+ Valsartan 51
mg, Sacubitril 97 mg+ Valsartan 103 mg,
Bisoprolol Hemifumarate 2.5 mg, Bisoprolol Hemifumarate 5 mg,
Bisoprolol Hemifumarate 10 mg
AMDOCAL PRO
Tablet
Bisoprolol Fumarate 2.5 mg + Amlodipine Besilate 5 mg
ATOVA EZ
TELMA
TELMACAL
TELMA PLUS
Lipid Lowering ATOVA
ROSUTIN
Anti-Infectives ARLIN
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Atorvastatin 10 mg + Ezetimibe 10 mg, Atorvastatin 20 mg +
Ezetimibe 10 mg,
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
Cefi xime 200 mg, Cefi xime 400 mg
Suspension
Cefi xime 100 mg / 5 ml, Cefi xime 200 mg / 5 ml
TYCLAV
Tablet
Amoxicillin 250mg + Clavulanic Acid 125 mg, Amoxicillin 500 mg +
Clavulanic Acid 125 mg, Amoxicillin 750 mg + Clavulanic Acid 125 mg
Suspension
Injection
TURBOCLAV
Tablet
Amoxicillin 125 mg + Cavulanic Acid 31.25 mg / 5 ml,
Amoxicillin 400 mg + Clavulanic Acid 57 mg / 5 ml
Amoxicillin 1 Gm + Clavulanic Acid 200 mg, Amoxicillin 500 mg +
Clavulanic Acid 100 mg
Cefuroxime 250 mg + Clavulanic Acid 62.5 mg, Cefuroxime 500 mg +
Clavulanic Acid 125 mg
AZITHROCIN
Tablet
Azithromycin 250 mg, Azithromycin 500 mg
Suspension
Azithromycin 200 mg / 5 ml
Injection
Azithromycin 500 mg IV
FILMET
NEOFLOXIN
Tablet
Syrup
Tablet
Metronidazole 200 mg, Metronidazole 400 mg, Metronidazole 800 mg
Metronidazole 200 mg / 5 ml
Ciprofl oxacin 750 mg, Ciprofl oxacin 500 mg, Ciprofl oxacin 250 mg
Injection
Ciprofl oxacin 250 mg / 5 ml
ARIXON
Injection (IV)
Ceftriaxone Sodium 250 mg, Ceftriaxone Sodium 500 mg, Ceftriaxone
Sodium 1 gm, Ceftriaxone Sodium 2 gm
Injection (IM)
Ceftriaxone Sodium 250 mg, Ceftriaxone Sodium 500 mg, Ceftriaxone
Sodium 1 gm
FOSAMIN
PENOMER
BEXOVID
REPLIVIR
BALOXA
Sachet
Injection
Tablet
Tablet
Tablet
Fosfomycin Trometamol 3 gm
Meropenem Trihydrate 500 mg, Meropenem Trihydrate 1 gm
Nirmatrelvir 150 mg + Ritonavir 100 mg
Entecavir o.5 mg, Entecavir 1 mg
Baloxavir Marboxil 20 mg, Baloxavir Marboxil 40 mg
Annual Report 2021-22 | Products | 19
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Anti-Infectives MULINA
BEMSIVIR
EMORIVIR
VIRAFLU
IVERA
Tablet
Injection
Injection
Capsule
Tablet
Tablet
Antacids DIGECID PLUS
PROGAVI
Suspension
Suspension
Lefamulin 600 mg
Lefamulin 150 mg/15 ml
Remdisivir Inn 100 mg
Monlupiravir 200 mg
Favipiravir 200 mg
Ivarmectine 6 mg, Ivarmectine 12mg,
Magaldrate 480 mg + Simethicone 20 mg / 5 ml
Sodium Alginate 500 mg + Sodium Bicarbonate 213 mg +
Calcium Carbonate 325 mg
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
GASTALFET
Tablet
Sucralfate 500 mg, Sucralfate 1000 mg
FAMOMAX
Suspension
Famotidine
Enzymes ZYMET Pro
Gastroprokinetics DEFLUX
Capsule
Tablet
Pancreatin 325 mg
Domperidone 10 mg, Domperidone 10 mg Meltab
Suspension
Domperidone 5 mg / 5 ml
MOPRIDE
Antispasmodic ROSTIL
CNS FRENXIT
NERVALIN
NERVALIN CR
XETRIL
EMIJOY
Hormones TAMONA
Laxatives FRELAX
SERELOSE
Anti-Fungals OMASTIN
Drops
Tablet
Capsule
Tablet
Tablet
Capsule
Tablet
Tablet
Tablet
Tablet
Domperidone 5 mg / ml
Prucalopride Succinate 1 mg, Prucalopride Succinate 2 mg
Mebeverine Hydrochloride 200 mg
Mebeverine Hydrochloride 135 mg
Flupentixol 0.5 mg + Melitracen 10 mg
Pregabalin 25 mg, Pregabalin 50 mg, Pregabalin 75 mg
Pregabalin 82.5 mg CR, Pregabalin 165 mg CR, Pregabalin 330 mg CR,
Clonazepam .5 mg, Clonazepam 2 mg
Chlordiazepoxide 5 mg + Amitriptyline Hcl 12.5 mg
Tamoxifen Citrate 10 mg,Tamoxifen Citrate 20 mg
Suspension
Liquid Paraffi n 1.25 ml + Magnesium Hydrochloride 300 mg / 5 ml
Solution
Capsule
Lactulose 3.35 gm / 5 ml
Fluconazole 150 mg, Fluconazole 200 mg, Fluconazole 50 mg
Suspension
Fluconazole 50 mg / 5 ml
Injection
Fluconazole 2 mg / ml Infusion
20 | Products | Annual Report 2021-22
A
B
O
U
T
U
S
Anti-Fungals TERBEX
Respiratory AZMASOL
Tablet
Cream
MDI
Terbinafi ne 250 mg
Terbinafi ne 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
GLYRIVA
DPI
Glycopyrronium Bromide 50 mcg / Capsule
Respules
Glycopyrronium Bromide 25 mcg / ml
AERONID
DECOMIT
MDI
MDI
DECOMIT PLUS MDI
SYMBION
DPI
Budesonide 200 mcg / puff
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
DPI
Tritropium Bromide 18 mcg
Nasal Spray
Beclomethasone Dipropionate 100 mcg
NASOMET
Nasal Spray
Mometasone Furoate 50 mcg / Actuation
FIXONASE
PERINASE
DYNASE
TOFEN
IPRASOL
MONOCAST
Tablet
Syrup
MDI
Respules
Respirator
Solution
Tablet
Sachet
FLOMYST F
MDI
ONRIVA
ONRIVA PLUS
ONRIVA TRIO
DPI
DPI
MDI
Nasal Spray
Fluticasone Furoate 27.5 mcg / Actuation
Nasal Spray
Fluticasone Propionate 50 mcg / Actuation
Nasal Spray
Azelastine hydrochloride 137 mcg + Fluticasone propionate
50 mcg / Actuation
Ketotifen Fumarate 1mg
Ketotifen 1 mg / 5 ml
Salbutamol 100 mcg+ Ipratropium 20 mcg
Salbutamol 2.5 mg+ Ipratropium 0.5 mg/ 3 ml
Salbutamol 2.5 mg/ml+ Ipratropium 0.5 mg/ml
Montelukast 4 mg, Montelukast 5 mg, Montelukast 10 mg
Montelukast 4 mg
Fluticasone Propionate 5 mcg + Formoterol Fumarate 50 mcg,
Fluticasone Propionate 5 mcg + Formoterol Fumarate 125 mcg,
Fluticasone Propionate 10 mcg + Formoterol Fumarate 250 mcg
Indacaterol Maleate 75 mcg, Indacaterol Maleate 150 mcg
Indacaterol 110 mcg + Glycopyrronium 50 mcg
Indacaterol 150 mcg+ Glycopyrronium 50 mcg+
Mometasone Furoate 160 mcg
FIXOLIN
Tablet
Doxofylline 200 mg, Doxofylline 400 mg
Annual Report 2021-22 | Products | 21
S
U
T
U
O
B
A
Respiratory MUCOMIST
TRIBREZ
IV Fluids DEXAQUA
DEXORIDE
SALORIDE
Ophthalmic ODYCIN
ODYCIN D
TEARON
Tablet
Respirator
Solution
Inhaler
Injection
Injection
Injection
Eye Drops
Eye Drops
Eye Drops
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
Moxifl oxacin 0.5%
Moxifl oxacin Hcl
Polyethylene Glycol 400 0.4% + Propylene Glycol 0.3%
TEARON FRESH
Eye Drops
Caboxymethyl Cellulose Sodium 1%
VIVIS
Urogenital URAL-K
MIRASOL
VESINAC
UROFLO
Capsule
Solution
Tablet
Tablet
Capsule
Antioxidants & Minerals
Potassium Citrate 1500 mg + Citric Acid Monohydrate 250 mg / 5 ml
Solution
Mirabegron INN 25 mg,Mirabegron INN 50 mg
Solifenacin Succinate 5 mg, Solifenacin Succinate 10 mg
Tamsulosin Hydrochloride 0.4 mg
UROFLO PLUS
Capsule
Tamsulosin Hydrochloride 0.4 mg + Dutasteride 0.5 mg
Oncology OGIVRI
FULPHILA
KANEVA
XELOCIN
TAXEDOL
PACLI
Lyophilized
Powder
Prefi eld
Syringe
Tablet
Tablet
IV Infusion
IV Infusion
Trastuzumeb INN 440mg/Vial
Pegfi lgrastim
Erlotinib 100 MG, Erlotinib 150 MG
Capecitabine 500 mg
Docetaxel Trihydrate 20 mg/vial, Docetaxel Trihydrate 80 mg/vial
Paclitaxel 6 mg/ml
Vitamins &
Minerals
BEXTRAM GOLD Tablet
High Potency 32 Multivitamin-Mineral
BEXTRAM
SILVER
Tablet
High Potency 30 Multivitamin-Mineral
BEXTRAM KIDZ
Syrup
Multivitamin & Cod Liver Oil
D-RISE
Capsule
Cholecalciferol 20000 IU, Cholecalciferol 40000 IU
HEMOFIX FZ
NEUROCARE
CALORATE
Tablet
Tablet
Tablet
Tablet
Cholecalciferol 2000 IU
Elemental Iron 48 mg (Ferrous Ascorbate), Folic Acid 0.5 mg And
Elemental Zinc 22.5 mg Tab
Vitamin B1, B6, and B12
Calcium Orotate 400 mg, Calcium Orotate 740 mg
FERINTUS
Injection
Ferric Carboxymaltose 500 mg/10 ml, Ferric Carboxymaltose
100 mg/2 ml
ZOLTERO
Injection
Zoledronic Acid 5 mg/100 ml
BECORAL D
BECORAL DX
Tablet
Tablet
Coral Calcium
Coral Calcium
22 | Products | Annual Report 2021-22
A
B
O
U
T
U
S
Active Pharmaceutical
Ingredients (APIs)
APIXABAN
LINAGLIPTIN
RIVAROXABAN
ROSUVASTATIN
SITAGLIPTIN
PENICILLINS
DICLOFENAC
Annual Report 2021-22 | Products | 23
S
S
U
U
T
T
U
U
O
O
B
B
A
A
Key Products Launched
in 2021-2022
We launched 30 generics in 51 different presentations in the domestic market with 9 products introduced for
the fi rst time in Bangladesh. Beximco Pharma has the distinction of being the world’s fi rst pharmaceutical
company to launch the generic versions of Remdesivir injection (Bemsivir®), Molnupiravir
capsules (Emorivir®) and Paxlovid (Nirmatrelvir+Ritonavir) tablets (Bexovid®) for
COVID-19 treatment.
24 | Products | Annual Report 2021-22
A
A
B
B
O
O
U
U
T
T
U
U
S
S
Markets
Beximco Pharma is a leading player of the country’s Taka 300 billion Pharma market with a combined 10.9% share held by the
Company and its subsidiaries. Domestic sales accounts for 92% of our consolidated revenue and remain the key driver of our growth.
Alongside fl ourishing in the domestic market, the company remains centered on its strategy to take advantage of the generic drug
opportunities in overseas markets and is steadily widening its global reach. It has over the years emerged as a dominant exporter
with its footprints in over 50 countries across all continents. Beximco Pharma is the six-time winner of National Export Trophy (Gold)
for its excellent export performance.
North America
er
Central America
& Caribbean Islands
South America
CIS Central Asia
Europe
Middle East
Asia
Africa
Export Destinations
South Asia
Asia Pacific + CIS
Africa
Europe
North America
Azerbaijan
Belarus
Georgia
Hong Kong
Indonesia
Laos
Malaysia
Moldova
Mongolia
Philippines
Russia
Singapore
Taiwan
Thailand
Uzbekistan
Afghanistan
Bhutan
Cambodia
Maldives
Myanmar
Nepal
Pakistan
Sri Lanka
Vietnam
Middle East
Iraq
Jordan
Lebanon
Oman
UAE
Yemen
Botswana
Burundi
DR Congo
Egypt
Ethiopia
Ghana
Guinea
Ivory Coast
Kenya
Lesotho
Libya
Mauritius
Mali
Morocco
Mozambique
Namibia
Nigeria
Somalia
South Africa
Sudan
Tanzania
Uganda
Zambia
Zimbabwe
Austria
Germany
Kosovo
Netherlands
Romania
A
Canada
USA
Australasia
Australia
Fiji
Kiribati
Tonga
N
o
r
t
h
A
m
e
r
i
c
a
4
1
%
A
f
ri
s
i
a
c
a
2
2
2
3
%
%
Rest of the W
Australia 2%
orld 12
%
Australia
New Zealand
Latin &
Central America
Belize
Bolivia
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Guyana
Honduras
Jamaica
Mexico
Netherlands Antilles
Nicaragua
Panama
Paraguay
Peru
Suriname
Trinidad & Tobago
Venezuala
Region Wise Export (2021-22)
Annual Report 2021-22 | Markets | 25
S
S
U
U
T
T
U
U
O
O
B
B
A
A
26 | Manufacturing Capabilities | Annual Report 2021-22
A
A
B
B
O
O
U
U
T
T
U
U
S
S
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 fl uids, liquids,
ointments, creams, suppositories, ophthalmic drops, injectables, prefi lled
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 purifi cation, effl uent treatment, liquid nitrogen and steam generation
plant/facilities. There is over 2,42,000 sq ft warehouse area to accommodate
materials and fi nished 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 2021-22 | Manufacturing Capabilities | 27
S
S
U
U
T
T
U
U
O
O
B
B
A
A
Current Production Capacity:
Oral Solid Dosage (OSD)
(cid:129) Tablets, Capsules, Powder for Suspension, Sachets and
Oral Soluble Films
(cid:129) Capacity: Tablets-11,800 million, Capsules-622
million, Powder for Suspension-9.5 million
bottles, Sachets- 16 million and Oral Soluble Films-
0.52 million units
Semi Solid and Liquid (SSL)
(cid:129) Liquids, Cream & Ointment, Shampoo & Lotion
and Suppository
(cid:129) Capacity: Liquids-156 million bottles, Cream &
Ointment-40 million Tubes, Suppository- 25
million pieces, and Shampoo & Lotion- 1.92
million bottles
Sterile, Nasal Spray & Respiratory
Solutions
(cid:129) Intravenous fl uid, Amino Acid, Insulin Nasal Spray and
Respiratory Solutions (Non-Steroids), Nasal Spray and
Respiratory Solutions (Steroids), Lyophilized Injection,
Prefi lled Syringe and Ophthalmic products
(cid:129) Capacity: Intravenous fl uids-10 million bottles, Amino
Acid- 2 million bottles, Insulin- 3 million vials and
cartridges, Nasal Spray- 0.65 million and Respiratory
Solutions- 1.44 million ampules, Lyophilized and Liquid
Injection- 3 million vials, Prefi lled Syringe- 0.36 million
units and Ophthalmic – 4 million LDPE containers
28 | Manufacturing Capabilities | Annual Report 2021-22
A
A
B
B
O
O
U
U
T
T
U
U
S
S
Inhalers
Metered Dose Inhalers (MDI), Dry Powder Inhaler(DPI)/
Multi Dose Dry Powder Inhaler (mDPI)
(cid:129) Capacity: MDI- 18.5 million Cans, sDPI- 109
million Capsules, mDPI- 0.25 million Capsules
Penicillin
(cid:129) Capsules and Dry Syrups
(cid:129) Capacity: Capsules – 42.24 million and Dry Syrups-
3.06 million bottles
Active Pharmaceutical Ingredients (APIs)
(cid:129) Multiple APIs
(cid:129) Capacity: 22MT
Annual Report 2021-22 | Manufacturing Capabilities | 29
S
S
S
U
U
U
T
T
T
U
U
U
O
O
O
B
B
B
B
A
A
A
Unit 3
Our new manufacturing facility, Unit-3, spanning a production area of 300,000 square feet, for oral solids, semi-solids and
liquid products is now fully operational. Facility employs top class European machinery and process equipment known
for highest quality and safety standards.
OSD operations spread over three fl oors have eleven granulation, thirteen tablet compression, and eleven blister lines.
There are fi ve liquid production lines with separate manufacturing, storage, transfer, fi lling and automatic packing
facilities. There are also dedicated lines for cream and ointment, HDPE shampoo, sachet, thin fi lms, effervescent tablets
and dry syrup.
Our modern Quality Control Laboratory employs advanced equipment and technologies to ensure that all our products are
manufactured strictly in compliance with cGMP.
Having a dedicated technical area of 250,000 sq ft, the Unit 3 employs advanced HVAC system with energy saving
technologies to optimize energy use. The 15.75 MVA substation is the power backbone of the facility. It also has 73.5m3
water treatment plant with ultra-violet sterilization as well as European purifi ed water generation and distribution system
having a capacity of 25,000 liters per hour.
30 | Manufacturing Capabilities | Annual Report 2021-22
A
A
B
B
O
O
U
U
T
T
U
U
S
S
Annual Report 2021-22 | Manufacturing Capabilities | 31
T
S
N
U
E
T
M
U
E
O
G
B
A
A
N
A
M
D
N
A
D
R
A
O
B
Research and Development
Research and Development (R&D), as for any other pharmaceutical company, is an integral part of our business and is critical to
the company’s value chain. Our R&D activities are closely focused on market needs and driven by technological progress. Beximco
Pharma has a strong R&D team of highly qualifi ed multidisciplinary scientists who are capable of developing technology driven,
diffi cult to copy products, both for domestic and highly regulated markets. In the recent past we have demonstrated our ability to
innovate and respond to health emergencies introducing generic versions of different covid related medicines including world’s fi rst
generic remdesivir. In recognition of our effort, we won CPhI Pharma Award 2020 for “Innovation in response to Covid-19”. Our key
strength lies in our ability to excel in creating a portfolio of differentiated products beyond conventional dosage forms which include
metered dose inhalers, dry powder inhalers, dispersible tablets, prefi lled syringes, lyophilized injectables, sterile ophthalmic, nasal
sprays etc. We continue to pursue collaboration with universities and leading global MNCs for strengthening our capabilities in
selected areas, especially biosimilars and vaccines.
32 | Research and Development | Annual Report 2021-22
B
A
O
B
A
O
R
U
D
T
U
A
S
N
D
M
A
N
A
G
E
M
E
N
T
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:
(cid:129) U.S. FDA
(cid:129) Therapeutic Goods Administration (TGA), Australia
(cid:129) Malta Medicines Authority (European Union)
(cid:129) German Regulatory Authority (Regierungspräsidiums Tübingen)
(cid:129) Gulf Central Committee (GCC)
(cid:129) World Health Organization (WHO)
(cid:129) ANVISA (Brazil)
Annual Report 2021-22 | Global Accreditations | 33
T
T
T
TTTTTTT
N
NN
N
N
N
E
E
E
EE
E
E
EEEEEE
M
M
MM
M
M
MMM
MM
MMM
MMMMMMM
M
M
M
M
M
E
EEEEEEEEEEEE
E
E
E
E
E
E
E
G
G
G
G
G
GGGG
G
A
A
A
A
A
A
A
A
A
A
N
NNNNNNN
N
N
N
N
N
N
N
A
A
A
A
AA
A
A
A
AA
A
AAAAAAAAAA
M
MMMMMMMMM
M
M
M
M
M
M
M
M
M
D
D
D
D
D
D
DDD
N
NNN
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
A
AAAAAAAAAAAA
A
A
A
A
A
A
A
A
A
A
D
D
D
D
D
D
D
D
D
D
RRRRRRR
R
R
R
AAA
AAAAAAAAAAA
A
A
A
A
A
A
A
A
O
O
OO
O
O
OO
O
OO
O
O
O
O
O
O
O
O
BBB
B
B
B
B
B
B
B
Board and Management
A S F Rahman
Chairman
Salman F Rahman MP
Vice Chairman
34 | Board and Board Committees | Annual Report 2021-22
B
B
O
O
A
A
R
R
D
D
A
A
N
N
D
D
M
M
A
A
N
N
A
A
G
G
E
E
M
M
E
E
N
N
T
T
Board and Board Committee
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
Annual Report 2021-22 | Board and Board Committees | 35
T
T
T
T
TT
T
N
NNNN
N
N
N
N
N
E
E
E
EEEE
EEE
M
M
M
MMM
MMM
M
M
M
E
E
E
E
G
G
G
A
A
A
A
N
N
N
N
N
A
A
A
A
A
M
M
M
M
M
M
D
D
DD
D
D
N
N
N
N
N
N
N
A
A
A
D
D
DD
D
RRRR
R
R
R
A
A
A
O
O
O
O
O
BB
B
B
B
B
B
Profi le of Directors
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 fi rst private university in Bangladesh.
36 | Profi le of Directors | Annual Report 2021-22
B
BB
B
O
O
O
O
AA
A
A
A
R
R
R
RRR
D
D
D
D
D
AA
AAA
A
NN
N
N
N
DDDD
D
D
MMMMM
M
AAAAA
A
N
N
N
N
NNNNNN
N
A
A
AA
AA
A
A
A
A
A
GGG
G
G
G
G
E
E
MM
M
MM
M
EE
E
E
E
N
N
NN
N
N
T
T
T
T
T
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 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 2021-22 | Profi le of Directors | 37
T
N
E
M
E
G
A
N
A
M
D
N
A
D
R
A
O
B
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 Synovia Pharma PLC- 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.
38 | Profi le of Directors | Annual Report 2021-22
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O
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R
D
A
N
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M
A
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A
G
E
M
E
N
T
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 fi ve 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 fi elds including
public administration, development management, law, accounts and fi nance, 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 2021-22 | Profi le of Directors | 39
T
N
E
M
E
G
A
N
A
M
D
N
A
D
R
A
O
B
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 Offi ce, 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 qualifi ed as Chartered Secretary from the Institute of Chartered
Secretaries of Bangladesh (ICSB) and is a Fellow Member of the institute. He was four times President of
ICSB. He is a widely experienced person with long career in Company Secretarial functions.
40 | Profi le of Directors | Annual Report 2021-22
B
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D
M
A
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A
G
E
M
E
N
T
As our journey continues, we remain steadfast in our commitment to making a positive
impact on patients’ lives by providing access to affordable medicines.
T
T
N
N
E
E
M
M
E
E
G
G
A
A
N
N
A
A
M
M
D
D
N
N
A
A
D
D
R
R
A
A
O
O
B
B
Executive Committee
Executive Committee comprises fi ve members, two of whom are also members of the Board of Directors.
Osman Kaiser Chowdhury
Nazmul Hassan MP
Rabbur Reza
Mohammad Ali Nawaz
Afsar Uddin Ahmed
Member of the Board of Directors
Managing Director
Chief Operating Offi cer
Chief Financial Offi cer
Director, Commercial
42 | Executive Committee | Annual Report 2021-22
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Rabbur Reza
Chief Operating Offi cer
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 Synovia Pharma PLC, 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 Offi cer
Mr. Mohammad Ali Nawaz is a well-rounded fi nance professional with extensive exposures in corporate
fi nance 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 Offi cer of Beximco Pharma
in 2009. He is also a Director of Nuvista Pharma Ltd., Synovia Pharma PLC, and Beximco Pharma API Ltd.
Mr. Nawaz qualifi ed as a CMA from the institute of Cost and Management Accountants of Bangladesh,
and is currently a Fellow Member of the Institute. He also obtained an MBA from the Institute of Business
Administration, University of Dhaka.
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 2021-22 | Executive Committee | 43
T
T
T
N
N
N
E
E
EE
M
M
M
M
E
E
E
G
G
G
A
A
A
A
N
N
N
A
A
M
M
D
D
D
N
N
N
A
A
A
A
D
D
D
R
R
R
A
A
A
A
O
O
O
B
B
Management Committee
Nazmul Hassan MP
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Rabbur Reza
Chief Operating Offi cer
Mohammad Ali Nawaz
Chief Financial Offi cer
Mohd. Tahir Siddique
Director, Quality
Rizvi Ul Kabir
Director, Marketing
Jamal Ahmed Choudhury
Director, Accounts & Finance
Ms. Roksana Hassan
Executive Director, Financial Compliance
Audit and Internal Control
Mahfuzur Rahman
Executive Director, API
M A Arshad Bhuiyan
General Manager
Human Resource
44 | Management Committee | Annual Report 2021-22
B
B
O
O
A
A
R
R
D
D
A
A
NN
N
DDD
D
M
MM
M
A
A
A
N
N
A
A
A
A
A
G
G
G
G
G
E
E
E
M
M
M
E
E
E
N
N
T
T
Afsar Uddin Ahmed
Director, Commercial
Lutfur Rahman
Director, Manufacturing
Zakaria Seraj Chowdhury
Head of Distribution Services &
Director, International Marketing
Shamim Momtaz
Director, Manufacturing
Dr. Selina Akter
Executive Director
Department of Medical Affairs
Shawkat Haider, Ph D
Executive Director, Business Development
& Corporate Affairs
Md. Mehboobul Haque
Executive Director
Factory Administration
Subodh Chandra Das
Executive Director
Research and Development
Annual Report 2021-22 | Management Committee | 45
I
I
I
S
S
T
T
H
H
G
G
I
I
I
L
L
L
H
H
H
G
G
G
H
H
H
E
E
E
C
C
N
N
A
A
M
M
R
R
O
O
F
F
R
R
R
E
E
E
P
P
P
Beximco Pharma (Stand-alone)
2021-22
2020-21
BDT 30,220.7m 12.1% BDT 26,949.3m
Net sales
BDT 27,553.6m 15.6%
BDT 23,825.3m
Domestic sales
Export sales
Profi t befor tax
Profi t after tax
EPS
NAVPS
BDT 2,667.2m 14.6%
BDT 3,124.0m
BDT 6,736.5m 11.7%
BDT 6,033.5m
BDT 5,161.3m 4.4%
BDT 4,943.5m
BDT 11.57
BDT 11.08
BDT 90.37
BDT 82.28
35% cash dividend (BDT 3.5 per share)
46 | Financial | Annual Report 2021-22
P
P
P
E
E
E
R
R
R
F
F
F
O
O
O
R
R
R
M
M
A
A
N
N
C
C
C
E
E
E
H
H
G
G
H
H
L
L
I
I
G
G
H
H
T
T
S
S
I
I
Beximco Pharma (Consolidated)
2020-21
2021-22
BDT 29,493.6m
BDT 34,669.2m 17.5%
BDT 26,369.6m
BDT 31,984.1m 21.3%
Net sales revenue
BDT 3,124.0m
BDT 2,685.1m 14.0%
BDT 6,377.5m
BDT 6,686.9m 4.9%
BDT 5,165.7m
BDT 4,998.6m 3.2%
BDT 11.49
BDT 11.48
BDT 83.01
BDT 91.01
Domestic sales
revenue
Export sales
Profi t befor tax
Profi t after tax
EPS
NAVPS
Annual Report 2021-22 | Financial | 47
I
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L
H
G
H
E
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O
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R
E
P
Operational Highlights
P
P
E
E
R
R
F
F
O
O
R
R
M
M
A
A
N
N
C
C
E
E
H
H
G
G
H
H
L
L
I
I
G
G
H
H
T
TT
T
S
S
I
I
Annual Report 2021-22 | Operational | 49
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G
I
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H
G
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E
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R
O
F
R
E
P
Value Addition
For the Year Ended 30 June 2022
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
36.1%
Duties & Taxes to Govt.
Exchequer
Taka in thousand
Taka
%
41,300,692
(19,073,145)
22,227,547
5,554,382
6,034,648
1,001,836
1,608,393
8,028,288
22,227,547
100
25.0
27.2
4.5
7.2
36.1
100
27.2%
Salaries and Benefits to
Employees
25.0%
25
Retained by the
Retaine
Compa
Company
2%
7.2%
Dividend to
Shareholders
4.5%
Interest to
Lenders
50 | Value Addition | Annual Report 2021-22
Accolades and Awards
P
P
P
E
E
E
R
R
R
F
F
F
O
O
O
RR
R
R
M
M
M
A
A
A
N
N
N
C
C
C
E
E
E
H
H
H
G
G
G
H
H
H
L
L
L
I
I
I
G
G
G
H
H
H
T
T
T
S
S
S
I
I
I
WINNER
(cid:23441)(cid:23460)(cid:23479)(cid:23468)(cid:23474)(cid:23473)(cid:23460)(cid:23471)(cid:23395)(cid:23432)(cid:23483)(cid:23475)(cid:23474)(cid:23477)(cid:23479)(cid:23395)(cid:23447)(cid:23477)(cid:23474)(cid:23475)(cid:23467)(cid:23484)(cid:23395)(cid:23403)(cid:23434)(cid:23474)(cid:23471)(cid:23463)(cid:23404)(cid:23395)
(cid:23433)(cid:23452)(cid:23395)(cid:23413)(cid:23411)(cid:23412)(cid:23419)(cid:23408)(cid:23412)(cid:23420)
(cid:23465)(cid:23474)(cid:23477)(cid:23395)(cid:23479)(cid:23467)(cid:23464)(cid:23395)(cid:23477)(cid:23464)(cid:23462)(cid:23474)(cid:23477)(cid:23463)(cid:23395)(cid:23417)(cid:23479)(cid:23467)(cid:23395)(cid:23479)(cid:23468)(cid:23472)(cid:23464)
Annual Report 2021-22 | Accolades and Awards | 51
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I
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H
G
G
I
I
L
L
H
H
G
G
H
H
E
E
C
C
N
N
A
A
M
M
R
R
O
O
F
F
R
R
E
E
P
P
52 | Accolades and Awards | Annual Report 2021-22
P
P
P
E
E
E
R
R
R
F
F
F
O
O
O
R
R
R
M
M
M
A
A
A
N
N
N
C
C
C
E
E
E
H
H
H
G
G
G
H
H
H
L
L
L
I
I
I
G
G
G
H
H
H
T
T
T
S
S
S
I
I
I
46th International Convention on
Quality Control Circles (ICQCC)
Beximco Pharma received the “PAR EXCELLENCE”
award at the 46th International Convention on Quality
Control Circles (ICQCC) – 2021 held in India. Quality
Circle Forum is a non-profi t organization working to
improve the quality of work, product as well as life of
the employees. 900 teams from 15 different countries
participated at the convention.
Green Factory Award 2020
Beximco Pharma received Green Factory Award
2020 from the Ministry of Labour and Employment
in recognition of its contribution to environmental
protection. This award was given on the occasion of
the birth centenary of Bangabandhu Sheikh Mujibur
Rahman. 15 companies
from different sectors
received this year’s Green Factory Award.
Annual Report 2021-22 | Accolades and Awards | 53
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Corporate Events and CSR
Corporate Events
Throughout the year the Company carried out different events and programs. Presented below are selected snapshots:
Annual Sales and Marketing Conference 2022
Annual Sales and Marketing Conference, a yearly event of Sales and marketing team was held in March 2022 at Cox’s Bazar.
Annual Strategy Briefi ng Session 2022
Annual Strategy Briefi ng Session of Marketing and Sales team was held in Dubai, UAE in January 2022, with COO of BPL leading the
event.
54 | Corporate Events | Annual Report 2021-22
Finance Conference 2022
C
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R
The 12th Finance Conference of Accounts and Finance department was held in August 2022 at a local resort in Gazipur. The theme of
this year’s conference was “Integration Challenges and Synergy Options”. Members of fi nance and other cross functional teams of
Beximco Pharma, Nuvista Pharma, and Synovia Pharma attended the two-day long program. Topics covered in the conference includes
“Acquisition Goals and Better Business Value”, “Supply Chain Challenges in 2023”, “Integration Issues from Finance Perspective”,
“Cultural Integration” and “Effi ciency and Synergy in Supply Chain”.
Handover of Cheque of Taka 21.9 million to Sramik Kallayn Foundation
Beximco Pharma paid Taka 21.9 million to the Sramik Kallyan Foundation being its share to the WPPF of the Company. The cheque
was handed over to honorable state minister for Labour and Employment, Begum Monnujan Sufi an in an informal ceremony held at
Bangladesh secretariat. Another cheque representing the share of Nuvista Pharma’s contribution to the foundation was also handed
over in the same occasion.
Annual Report 2021-22 | Corporate Events | 55
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Free Vaccination program for Employees
Over 2500 employees of Beximco Pharma participated in a fl u vaccination drive called “Beat the Flu” at the company’s Head Offi ce
and Factory.
Awareness Program of Female Mental Health
View of special Mental Health Awareness session organized by the Company for its female employees.
56 | Corporate Events | Annual Report 2021-22
HR Team Building Program
C
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Partial view of team building event organized for BPL’s emplyees at Chandranath Mountain, Sitakundo, Chattogram
Line of Sight (LOS) Program of HR
“Line of Sight” program organized by Human Resource department to align individual goal with corporate goal
Annual Report 2021-22 | Corporate Events | 57
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At Beximco Pharma, it is not just about how many products we sell, but rather,
it is about the lives we save
58 | Corporate Events | Annual Report 2021-22
CSR Initiatives
As a responsible entity, Beximco Pharma conducts its business in a manner that protects and promotes the interest of the society. We
undertake various voluntary programs benefi cial to the society and provide support to the organizations that works for noble causes.
Below are some of the CSR initiatives of the year under review:
Medicine Donation to Sri Lanka
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Beximco Pharma handed over medicines to the Bangladesh Association of Pharmaceutical Industries (BAPI) for supply to Sri Lanka
at a ceremony graced by Dr. A.K. Abdul Momen MP, Honorable Minister, Ministry of Foreign Affairs, Mr. Zahid Maleque MP, Hon’ble
Minister, Ministry of Health and Family Welfare, Prof. Sudharshan DS Seneviratne, the Sri Lankan High Commissioner of Bangladesh
and Mr. Nazmul Hassan MP, Managing Director of Beximco Pharma.
Donation of Remdesivir
Beximco Pharma donated to supply Remdesivir injection free of cost to government hospitals across the country for COVID-19 treatment.
Annual Report 2021-22 | CSR Initiatives | 59
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Donation to Begum Rokeya Nari-O-Shishu Shasthya
Unnayan Sangstha (BERNOSSUS)
Beximco Pharma donated medicines to Begum Rokeya Nari-O-Shishu Shasthya Unnayan Sangstha (BERNOSSUS) which is a nonprofi t
health care development organization for women and children. The foundation is run by prominent physicians and social activists
from Bangladesh and abroad. The primary mission of the foundation is to deliver health care, nutrition, health hygiene and wellness
education for underprivileged women and children by female physicians and healthcare workers.
Support to the Survivors of Fire Incidence in Chittagong
Beximco Pharma in collaboration with JAAGO Foundation extended support to Chattogram fi re victims and their families.
Beximco Supports the fl ood Victims of Sylhet
Beximco Pharma handed over relief aid to the Deputy Commissioner of Sylhet for distribution among the fl ood victims across the
affected areas.
60 | CSR Initiatives | Annual Report 2021-22
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BPL Continues to Support Dnet Computer Literacy Centre
To promote computer learning and information technology among the underprivileged students of Bangladesh, Beximco Pharma
continued to support USA based Computer Literacy Program (CLP) being implemented by Dnet. CLP is an award winning non-formal
model which helps students in rural schools receive hands-on computer literacy training free of charge. Dnet so far has established
263 CLC centers in 55 districts and trained over 700 teachers (16% female) to help students learn the basics of the modern world.
International Conference on Genomics, Nanotech and
Bioengineering-2022 (ICGNB-2022)
Beximco Pharma was one of the key sponsors of the 2nd ICGNB-2022
conference hosted by North South University. The platform helped to exchange
scientifi c information in different fi elds and offered scientists, researchers, and
clinicians an excellent opportunity to present their research work. The 3-day
international conference covered a wide range of topics including genomics,
nanotech and bioengineering attended by scientists from Bangladesh and
different countries.
Donation of Essential Food Items
Beximco Pharma collaborated with Jaago Foundation and Bidyanondo, two non-profi t organizations of the country working for people
living below the poverty line to distribute food packages through a donation campaign called “Food for All”.
Annual Report 2021-22 | CSR Initiatives | 61
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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.
62 62 | E| Envinvironro mennt,t, HeaH lthh ana d Sd SSafeafeafety ty ty | A| A| AAnnunnunnun alal al alaa RepReRepReportortortt 202020202020-20-20 212
62 | Environment, Health and Safety | Annual Report 2020-21
Media Spotlights
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Forbes featured Beximco Pharmaceuticals Ltd. where they recognized our quick response and
persistence as a humanitarian ambassador during the peak time of COVID-19 pandemic. BPL was
able to successfully utilize their resources and become the fi rst pharmaceutical company in the world
to introduce a generic version of Remdesivir and Molnupiravir. The worldwide media fi rm also did an
excellent job of describing our achievements, development, contributions to the society, and vision for
the future. Forbes has beautifully captured the story highlighting Beximco’s immense contribution to
improving access to affordable medicines.
Bangladesh Pharmaceutical Industry Featured by CNN and Forbes
To commemorate the Golden Jubilee of Bangladesh and Mujib Birth Centenary, CNN conducted
the ‘Made in Bangladesh’ campaign monitored by the Steering Committee under the Ministry of
Commerce and Bangladesh Foreign Trade Institute (BFTI). The holistic campaign was proposed by CNN
to promote Bangladesh's various export industries and execute the country's export-oriented strategic
growth plan. CNN featured the potential of Bangladesh’s pharma industry to manufacture high-quality
generics at an extremely affordable price in times of need.
“Our self-reliant pharmaceutical industry not only plays a vital role in promoting healthcare within the
country, but it is also well set to expand its global footprint, providing access to affordable generics
across continents.”
-Nazmul Hassan MP, President, BAPI
Annual Report 2021-22 | Media Spotlights | 63
Annual Report 2020-21 | Environment, Health and Safety | 63
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Environment, Health and Safety
We care
Beximco Pharma is aware of its responsibilities to protect the environment and promoting sustainable eco-friendly operations.
The Company strives to reduce ecological impact, create adequate facilities, and employs appropriate processes to keep the
environmental effects of our operations to a practicable minimum level. Our criteria for sourcing and selecting the technology and
processes includes adequate emphasis on factors that might potentially affect our ecosystem and prioritize those that are most eco-
friendly. We were among the fi rst few companies in the world who proactively converted all the CFC based inhalers to ozone benign
HFA formulations winning global recognition for such an initiative. We have operating procedures in place, as described in subsequent
sections, to dispose of the liquid and solid wastes and gaseous emissions in a controlled manner complying to the EHS standard.
A safe and healthy workplace is in our priority agenda and 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.
Compliance to Laws and Regulations
As a manufacturing Company engaged in pharmaceutical sector, our EHS operation is governed the following Acts, Rules and
Standards:
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
(cid:129)
Environmental Conservation Act, 1995
Environmental Conservation Rules, 1997.
Bangladesh Labor Law, 2006
Bangladesh Labour Rules, 2015
Fire Prevention and Extinction Act, 2003
Fire prevention and extinction rules, 2014
Bangladesh National Building Code, 2021
The Boiler Act, 1923
Bangladesh Explosive Act, 1995
Pressure Vessel Rules, 1995
Solid Waste Management Rules, 2021
Air Emission Control Rules, 2022
ISO14001:2015 - Environmental Management System.
ISO 45001:2018 - Occupational Health and Safety Management Systems.
(cid:129) Occupational Health and safety Administration
We actively comply with relevant government regulations and industry standards. All of our manufacturing facilities have certifi cation
and clearance from the appropriate authorities.
EHS Team
The Company has established a high level EHS Committee with senior-level management employees to oversee EHS issues and
ensure the implementation of the adopted standards. They are continually focused on improvement of the EHS culture within the
organization. The Committee meets once quarterly for a review of the system in place, identifying potential improvement areas and
suggesting remedial measures as appropriate.
In addition to the EHS Committee, Beximco Pharma has a Safety Committee consisting of representatives of management and
workers to monitor and manage the health and safety related issues and bring it to the attention of management. They also work to
build awareness on safety matters across the facilities.
64 | Environment, Health, and Safety | Annual Report 2021-22
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Beximco Pharma’s internal team conducts annual Environment, Health, and Safety audits and any areas of improvement identifi ed
through the audit are communicated to concerned department for appropriate measures.
Solid, Liquid Waste and Gaseous Emission Control and Conduction
Beximco Pharma has its own incineration unit, having a capacity of 250kg per hour depending on calorifi c value of the products. The
quality of gas discharged after purifi cation from the incinerator is well within acceptable standard set by the Directorate of Environment
(DoE).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.
We installed High-Effi ciency Particulate Air (HEPA) fi lters and proper scrubber for enhanced protection in manufacturing areas. Dust
particles collected from the fi lters 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.
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 manufacturing operation generates a considerable amount of wastewater from washing and cleaning of machineries, empty
bottles, utensils, fl oors, etc., The other source of liquid waste consists of dissolved and suspended API, excipients, laboratory re-
agents and water from the cooling tower. The Company has adequate control over managing the liquid waste and has its own effl uent
treatment plant. Treated water of ETP is reused in scrubber incinerator, Car Wash, Toilets, Garedning etc. No toxic wastewater is
discharged into the outside drain without treatment. The settled sludge is incinerated.
This year we have commenced operation of the new generation wastewater treatment facilities (PLC-based Membrane Bioreactor
technology). The facility has a capacity of 605 m3/day which is suffi cient to meet the wastewater treatment loads of the immediate
future.
Treated water quality complies with the standard value of local regulation and its quality surpasses the municipal regulation’s
standard value. Result of the treated water tested on October 25, 2022 are as follows:
Tests
pH
TDS
Dissolved Oxygen
COD
BOD
Arsenic
Specifi cation
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
7.48
883
5.3
60
11.67
0.05
Noise, Odor And Vibration
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 effi cient and has very insignifi cant effect in the sound level. Machine cover in required cases are also installed
to muffl e 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 57.
Annual Report 2021-22 | Environment, Health, and Safety | 65
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Fire Safety System
A new automated fi re hydrant system with a Jockey pump, an electric fi re pump, and a diesel engine fi refi ghting pump was constructed
on the factory’s south side to cover the whole facility. The reservoir for the fi re hydrant system has a capacity of 230,000 liters. Two
fi re hydrant systems are linked, and in the event of an emergency, anybody may assist the entire site.
We installed 854 various types of fi re extinguishers around our industrial grounds, including ABC fi re extinguishers, CO2 fi re
extinguishers, and Foam fi re extinguishers. We have also set up two Fire Cabinets at the entry gates with fi re blanket, fi reman’s axe,
fi rst-aid kit, lock cutter, and other emergency response items inside.
All areas in head offi ce and factories are provided with emergency exits along with proper signage, and where applicable, fl ameproof
appliances, fi re doors etc. are used. Partitions are made with PU panel capable of retaining fi re for a defi nitive time period.
Approximately 35% of personnel are trained to operate fi refi ghting equipment such as fi re extinguishers and fi re hydrants. Our trained
ERCT (Emergency Response Core Team) personnel are capable to manage emergencies using a suitable fi re extinguisher and an
automatic fi re hydrant system.
We execute evacuation simulation drills twice a year in collaboration with Bangladesh Fire Service and the Civil Defense Department
to train our people how to respond in the event of an emergency.
Protection of Health and Industrial Hygiene
Health Safety measures
We enacted proper and effective health and safety guidelines in all our operational and manufacturing sites. Beximco Pharma
identifi es and assesses potential exposure to chemical and physical stresses utilizing qualitative and quantitative analysis. Signifi cant
risks to chemical and physical stresses are controlled by isolation, engineering control, administrative control and providing protective
equipment. EHS aspects are considered before procurement of any equipment. EHS attribute is a part of User Specifi cation Requirement
(USR) of all equipment. All machines and moving parts are covered and interlocked through sensors to protect employees from
physical injury. Proper work uniforms, lab coats, eye and ear protection are provided where required. We also identify, assess and
control the factors that may lead to musculoskeletal or other ergonomically related disorders. Automation in most areas reduces
work stress. Smoking is prohibited in all our operational and manufacturing premises. Eating or drinking is not permitted in the
66 | Environment, Health, and Safety | Annual Report 2021-22
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manufacturing areas and analytical labs where chemical exposures are possible. All employees are trained on different EHS issues
including fi refi ghting, personal protective equipment, First Aid and Material Safety Data Sheet (MSDS).
Health Checkup and Doctors’ Consultation
Each and every employee undergoes pre-employment and annual health check-ups organized by the Company. Company has
contracted physicians specialized in Medicine, Gynecology, Child Health etc. Employees can consult them free of cost. We have a sick
bay and employees can take advice from the qualifi ed physicians engaged by the Company. There is an arrangement with the nearest
clinics for handling emergencies. We have several ambulances to send patients to the hospitals and clinics in emergency cases. First
aid boxes are provided to each department of every facility. All the employees are trained on Company’s general safety.
Green Initiatives
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Tree Plantation
As a modest attempt to create a carbon sink zone, this year we planted 3400 plants of different types around the boundary walls of
the factory premises
Saving Water and Energy
We endeavor to minimize the use of water and energy to help preserve these important resources. We are gradually replacing all our
water taps with sensor-controlled taps installed at different areas of the factory to reduce social water consumption. About 50% of
this water of the water treatment plant is recycled and used for gardening, car washing and as water scrubber of incinerator. We also
reuse wastewater of our WFI (water for injection) treatment plant to clean cooking utensils of canteen.
Annual Report 2021-22 | Environment, Health, and Safety | 67
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The unwavering commitment of our people-their energy and enthusiasm-remain
the driving force that leads us towards achieving newer milestones.
68 | Environment, Health, and Safety | Annual Report 2021-22
Annual Report 2020-21 | Our People | 68
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Beximco Pharma has put an Economizer in the exhaust line of the boiler to warm the feed water of the boiler and has also employed
a condensate recovery system to use condensate as a feed water of the boiler, which saves energy. Daylight saving issue is given due
consideration in the design of buildings and recently built Beximco Pharma’s Learning and Development Center has been designed
using steel sheets and glass panels for maximum use of day light.
Campaigns to Protect Environment and Promote Occupational Health &
Safety Matters
The Company conducts different campaigns for the employees as part of its continuous effort to create increased awareness about
the importance of saving our earth and creating a healthy & safe workplace for all. Additionally, we also sponsor different social
voluntary organizations who work for similar purposes.
Observance of Occupational Health & safety Day
Every year the Company celebrates the National Occupational Health & Safety Day on April 28 to build awareness about health and
safety of people at workplace. This year also, we celebrated the day with festive mood with displays of banners, festoons etc. at
different places of the factory premise. A discussion session was also arranged highlighting the importance of maintaining high health
and safety standards in the organization.
Observance of World Environment Day
In observance of World Environment Day on June 5, Beximco Pharma planted “Golden Shower trees (Local name: Sonalu)” at
its medicinal plant Garden in factory premises. Colorful T-shirts with slogans to save our resources, were distributed among the
employees.
Child Labor Compliance
Beximco Pharma scrupulously adheres to all Bangladesh Labor Act requirements, including the stringent provisions pertaining to
“Adolescent Employment.” There is no direct or indirect use of child labor in any area of the company.
Annual Report 2021-22 | Environment, Health, and Safety | 69
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Human Resources
Work and Culture
We always recognize that people are the cornerstone of our success. Our devoted and highly competent people are our key resource
to accomplish our mission and consistently remain at the centre of our strategy. We believe our ability to transform ourselves is largely
driven through empowering our people. We seek to provide a pleasant workplace environment to ensure that people are empowered,
motivated and inspired to deliver their best. Here, the workplace has evolved to be a very close community of co-workers where
employees take pride in their job, their team, and their company. They celebrate the successes of their peers and cooperate with
others throughout the organization. This people focused culture, indeed, makes Beximco Pharma unique compared to many others.
Beximco Pharma currently employs more than 5,000 people. Our strong pool of expertise consists of over 1,500 multidisciplinary
professionals including pharmacists, chemists, doctors, biologists, engineers, microbiologists, lawyers, MBAs and researchers. Our
people is well composed with adequate diversity in terms of education, age, experience, and gender. We try to hire people from
diversifi ed fi elds of expertise.
We focus on gender diversity and prefer female candidates where
male and female are found equally qualifi ed for any position.
Currently, Beximco Pharma employs 226 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
2021-22, the number of female employees has risen by 8% over
last year.
Our HR policy is to employ, attract and retain the talented people in
the industry and we provide competitive remuneration packages,
end-service benefi ts, and importantly, career progression in the
organization.
Female Employee
226
210
160
156
138
2017-18
2018-19
2019-20
2020-21
2021-22
The Company adopts objective, fair and unbiased evaluation criteria in the selection and recruitment process. The Company does not
make any discrimination in terms of gender, religion, faith, color or nationality.
Total Employee
Net Addition to Head Counts
5104
5377
4755
4489
349
273
234 266
2018-19
2019-20
2020-21
2021-22
2018-19
2019-20
2020-21
2021-22
70 | Work and Culture | Annual Report 2021-22
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Every year the Company is creating new employment opportunities and in FY 2021-22, we recruited 746 employees in permanent
positions with a net addition of 273 people, befi tting our business growth.
Training and Development
The business environment today is as competitive and complex as ever. With the continuing innovation, digital advancement,
changes in rules, regulation and standards knowledge and
skills are becoming short-lived. To equip our employees with
the necessary skills to keep up with the ever-changing and
fast-paced job environment learning and development had
always been a priority at Beximco Pharma.
Employee Training
(man-hours)
This year, bouncing back from the aftermaths of the pandemic,
we revitalized its learning and development initiatives to update
and upgrade the technical, management and business skills of
our employees.
This year-round, 1089 employees received 12000 man-hours of
specialized trainings in a wide range of areas including Brand
Management, Marketing management, women
leadership,
WHO GSD Implementation, Emotional intelligence, HR Analytics,
Competency Assessment Framework, Technology Transfer, Data
Science & Data management and Quality Control. These are in
addition to the routine need based tailor-made programs that our
dedicated training department at factory and head offi ce level
conducts throughout the year.
8
4
2
5
0
0
0
1
6
3
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1
7
6
7
5
8
6
3
1
6
8
2
1
3
5
7
0
3
Local
Overseas-Physical
Overseas-Virtual
2019-20
2020-21
2021-22
These apart, we have organized several awareness programs throughout the year including Awareness on Cyber securities, mental
Health and Healthy diet.
Workshop on building brands and creating unique brand strategies for existing products titled “Brand Fitness Gym” for SBM executives
Annual Report 2021-22 | Training and Development | 71
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Board and Management Report
Chairman’s Statement
A S F Rahman
Chairman
Dear Shareholders,
At a time when domestic and global economy was struggling to recover from the devastating COVID-19 effect, the Ukraine war that
began in the second half of the fi nancial year further created an upheaval in the global economy affecting every country around the
world. Despite such a diffi cult macro-economic condition, I am happy to report another successful year for Beximco Pharma with
continued growth momentum. Upon review of Reports of the Directors and the Managing Director, you will note that we performed
well in our operational and fi nancial continuum with sales, Operating Profi t and Pre-Tax Profi t recording a growth over comparable
previous period. In the operational area, we have further consolidated our domestic market position, launched a signifi cant number
of new products, and reinforced our overseas markets through more approvals and registrations.
72 | Chairman’s Statement | Annual Report 2021-22
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You will note from my last report, we set a milestone in the pharma industry of Bangladesh as we completed the acquisition of
Sanofi Bangladesh limited - our second acquisition since we took over Nuvista Pharma in 2018. Sanofi Bangladesh Limited has been
subsequently renamed as Synovia Pharma PLC. This year, we concentrated on its strategic integration and progressed as planned in
this direction. Beximco Pharma won ‘Global Generics and Biosimilar Award 2022’ in the category of “Acquisition of the Year” for this
successful acquisition. I remain confi dent that re-organized and restructured Synovia Pharma in the immediate term will be better
positioned in the market to meet our targets.
We made signifi cant investment to build the Unit- 3 manufacturing facility to support our growth and secure our future capacity
needs. This project, besides relieving the capacity constraint, will create product diversifi cation options. We will relocate some
products manufactured in our old facilities to the new site, leaving the space for alternative use. The project is now complete and
became operational. Manufacturing validation and transfer of products to the new facility are being done in phases.
While we are happy with the operational and fi nancial progress achieved, we are mindful of the macro-economic challenges the
world is passing through. At the country level, the economic downturn, energy crisis, high infl ation, depleting foreign currency
reserve, depreciation of Taka against its principal foreign currency US Dollar, and the political uncertainty surrounding the election in
2023 remain issues of concern. However, the government’s continued policy to provide priority to the manufacturing sector, especially
the pharmaceuticals and the agricultural sector, is a welcoming relief. Our focus, as always, will be on achieving the targets for the
year and striving to exceed them.
The Audit Committee and the Nomination and Remuneration Committee are two important committees of the Board. They carried
out their respective responsibilities with the utmost sincerity and diligence. Members of the Board of Directors have extended their
unceasing co-operation throughout the year. I convey my heartfelt gratitude to all of them.
We have got a highly dedicated, capable, and very sincere pool of employees. The achievement we have made so far was only
possible because of such a talented team. I thankfully acknowledge their contribution to the company.
Finally, I am grateful to you, dear shareholders, for placing your trust on us and always extending your invaluable support.
I wish you all a happy and healthy life.
Thanking you
A S F Rahman
Chairman
Annual Report 2021-22 | Chairman’s Statement | 73
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74 | Chairman’s Statement | Annual Report 2021-22
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Annual Report 2021-22 | Chairman’s Statement | 75
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Nazmmul HHassassass n Mn MM MPPP
ManMaM agaging DirD ecttoror
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Report of the Managing Director
Bangladesh, absorbing the initial shock of COVID-19, was recovering well in the post-pandemic period until the global economy
was again trembled by the incursion of the Ukraine war beginning in the second half of the fi nancial year. Despite global headwinds
and lingering post-pandemic challenges, Bangladesh posted an impressive GDP growth ranging between 6.9% to 7.2% according
to different estimates with strong export and increased domestic demand. However, Bangladesh, like many other countries, faces
global economic challenges stemming from the Ukraine war with a surge in import cost, energy crisis, sharp depreciation of domestic
currency against United States dollar and high infl ation from the second half of the FY2021-22. Widening Balance of Payment
defi cit brought down the foreign currency reserve to US $35.8 billion in October 2022 from a record US$48 billion in August 2021,
weakening the macro-economic stability that the country has been enjoying for a long time. Monetary and fi scal policies in advanced
economies including continued interest rate hikes are leading the world towards a global recession. Against this backdrop of global
economic slowdown, World Bank, IMF and ADB in their latest reports have lowered their growth forecast for Bangladesh as well as
all other South Asian economies.
According to IQVIA, the global pharma market was valued at $1.42 trillion in 2021, which is forecasted to reach $1.8 trillion by
2026, increasing at a rate of 3-6% annually. Biologic drugs continue to dominate with 7 of them in the top 10 list with Pfi zer’s mRNA
vaccine for COVID-19 alone generating a whopping $36.9 billion followed by monoclonal antibody for rheumatoid arthritis Humira
(Adalimumab) at $20.7 billion, and Moderna’s mRNA vaccine for COVID-19 at $17.7 billion. Global generic drugs market stood at
$305 billion in 2021 and will continue to expand as patented drugs worth almost $200 billion will go off patent during 2022-23, a
large part of it coming from blockbuster biologic drugs.
Bangladesh pharmaceutical market currently valued over US $3 billion has been enjoying a double-digit growth for quite a long time.
The industry maintained this historic trend in FY2021-22, although IQVIA report, the widely used data source for pharmaceuticals,
erroneously shows a different result for Bangladesh market. However, Bangladesh’s health sector being primarily driven by private
spending, economic downturn and lower purchasing power may slow down the future growth of this sector. Domestic and global
macro-economic disruptions remain an added burden for all the industries, including pharmaceuticals.
Review of Operations
Sales, Products and Markets
We concluded 2021-22 with remarkable progress in a challenging economic condition achieving 17.5% growth in our consolidated
revenue. Our domestic sales, driven by organic growth coupled with the acquisition of Synovia Pharma, increased 21.3% y-o-y,
outperforming the industry average. In the domestic market, we achieved the highest growth among the top fi ve companies. Our
domestic business was driven by our excellent performance in both chronic care and acute segments. This excellent performance is
a testament to the strength of our core capabilities, strategic portfolio, and very importantly, resilience in the face of a crisis. However,
the economic downturn and global supply chain disruptions largely caused our export decline by 14% and partly overshadowed our
domestic performance.
During the year under review, we launched 30 new products (51 presentations), 9 of them for the fi rst time in Bangladesh. We
continued to expand our export portfolio and completed 32 registrations for 28 products in 11 countries. Since my last report, we
received 3 more ANDA approvals in the US market and Marketing Authorizations for two products in the UK. We also entered 4 new
countries in the said period, including Morocco and Georgia.
Integration of Synovia Pharma PLC (formerly Sanofi Bangladesh Limited)
After completion of the acquisition of Synovia Pharma, we concentrated on its integration to fi t our business. As with our previous
acquisition, our operating strategy for the acquired entity is to let it run with the highest autonomy supporting and aligning its
business strategies to meet the acquisition goals. After acquisition, Synovia Pharma’s market reach has been extended through
the use of Beximco Pharma’s countrywide distribution network. Sales and marketing teams have been strengthened and we have
Annual Report 2021-22 | Report of the Managing Director | 77
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redesigned their business model mirroring the winning strategies of Beximco Pharma. New ERP and other IT platforms have been
rolled out across the organization, enabling the company to maintain its operational excellence.
Accounting Policies and Estimates
Bangladesh has adopted the International Financial Reporting Standards (IFRS)/International Accounting Standards (IAS). Beximco
Pharma has been consistently applying these standards in preparation of its fi nancial statements. Management has the discretion
to decide on the accounting policies within the fi nancial reporting framework and make estimates and provisions in preparing those
fi nancial statements. The Company’s accounting policies remain consistent with those of the previous year and there have been no
changes in the accounting policies that could materially impact the fi nancial 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 fi nance functions are manned with adequate experienced professionals. Appropriate policies and procedures, as well as adequate
review and control mechanisms are in place in every step of the fi nancial reporting value chain to avoid, eliminate or reduce the risk
of errors, omissions or material misstatements in the fi nancial reports. Moreover, quarterly and annual public reports are subject to
rigorous review by the Board’s audit committee in addition to the annual accounts being audited by independent external auditors.
Looking Forward
The Company will continue to build a differentiated portfolio to meet the unmet needs of our patients. We have created a new fi ll-n-
fi nish vaccine facility which is expected to be operational by FY2022-23 and negotiations are at the fi nal stage with global vaccine
producers for tech transfer. We will continue to seek more international collaborations in the areas of biosimilars and oncology, while
expand our API portfolio of patented molecules to capitalize on the TRIPS advantages. As we have completed the acquisition of Sanofi ,
later renamed Synovia, we believe its strong portfolio and sound operational experience will defi nitely help accelerate our growth,
complementing our existing portfolio in the domestic market.
Over the last four decades, we have transformed people’s lives by providing access to affordable medicines and largely contributed
to the country’s remarkable achievements in healthcare. As our journey continues, we remain steadfast in our commitment to making
a positive impact on patients’ lives by building healthier communities.
Despite all the uncertainties and the unforeseen challenges stemming from ongoing geopolitical tensions, we remain fi rm on our
strategic commitment to expand our businesses and stay ahead in the competition, doing our best to maintain the positive momentum.
We believe our powerful business model and fully committed, agile workforce will propel us forward and continue to deliver results
for our shareholders.
Thank you for your continued support.
Nazmul Hassan MP
Managing Director
78 | Report of the Managing Director | Annual Report 2021-22
First Time in
Bangladesh
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The combined force of our product development, manufacturing skills and also our marketing
expertise will yield defi nitive results not just for investors but also for patients in need.
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Report of the Directors
I am pleased to place before you the Directors’ Report and the Audited Accounts of the Company for the year ended 30 June 2022
along with the report of the auditors thereon.
General Economic Overview
Bangladesh economy at the beginning of FY2021-22 was showing strong signs of recovery from the onslaught of the pandemic
until the wave of the Ukraine war created another global economic turmoil. Bangladesh registered around 7 percent GDP growth
in FY2021- 22. Post pandemic period saw robust growth in exports, rise in investment, and increased domestic production and
consumption. However, the economy that was taking a bright look suffered a setback and confronted further challenge from the
stressed global economic conditions due to the war. Imports robustly increased because of growth-led demand and swelling cost.
Outfl ow of foreign currency due to surge in imports sharply outweighed the infl ows from the exports and remittance. Continuing
balance of payment defi cit put severe stress on Forex reserve and the Forex market became volatile, causing Taka to sharply
depreciate from the beginning of FY2021-22. Bangladesh Taka depreciated by a record 25 percent against United States dollar in
one-year time. Domestic Infl ation also soared during the period.
Government has taken up fi scal, monetary, and regulatory measures to ease the forex crisis and tame domestic infl ation. The country
is also facing energy shortages due to high cost and depleting foreign currency reserve situation. In this context, the World Bank
has revised its GDP growth forecast for Bangladesh to 6.1% from 6.7% for FY2022-23. The Asian Development Bank (ADB) has also
downgraded its forecast to 6.6% for the same fi scal year.
Government’s supportive policy for the pharmaceutical sector, however, remains unchanged. In Bangladesh, 117 items of medicines
are declared as essential category and their prices are controlled by the Directorate General of Drug Administration (DGDA). In
response to an appeal from the industry, the DGDA considering a signifi cant increase in the cost of inputs, approved upward price
revision of some of these products, which came into effect in July 2022. This gave a little respite to the industry, struggling with
eroding profi t margin due to increased cost.
Review of Financial Performance
Amidst global economic disorders and challenging domestic market conditions, Beximco Pharma achieved remarkable 17.5% growth
Sales and Profit Snapshot
17.5%
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
13.6%
3.8%
4.9%
3.2%
Sales Revenue
Gross Profit
Operating Profit
Pre-Tax Profit
Net Profit after Tax
2020 - 2021
2021 - 22
in consolidated sales to reach at Taka 34,669.2 million from Taka 29,493.6 million of prior year. Sales in the domestic market
80 | Report of the Directors | Annual Report 2021-22
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increased by 21.3% predominantly from the organic growth of business, and the acquisition. We attained an export revenue of Taka
2,685.1 million, a 14% decline from the preceding year because of supply chain disruptions, economic downturn and eco-political
crisis in some of our export destinations.
Our consolidated gross profi t rose 13.6% in FY 2021-22 to reach at Taka 15,814.3 million. The pre-tax profi t stands at Taka 6,686.9
million as against Taka 6,377.5 million earned in 2020-21 representing 4.9% YoY increase (11.7% on standalone basis). Our newly
acquired Synovia Pharma has incurred a pre-tax loss of Taka 279.0 million during the post-acquisition nine-month period and thus
pulled down the consolidated pre-tax profi t growth in percentage terms. Net Profi t after Tax however, declined by 3.2% to Taka
4,998.6 million on comparable terms, mainly because of one-off deferred tax benefi t that accrued from the changes of income tax
rates in previous year.
In the context of rising material and freight costs, sharp depreciation of domestic currency and high infl ation, the industry is
facing increasing challenges as the prices of medicines are not readily fl exible to absorb the increased cost. Moreover, the Unit- 3
manufacturing facility built to ease our capacity constraint and secure our future needs, has become operational this year. The
depreciation and other operating costs are now being charged as manufacturing overheads following the accounting standards. All
these combined has brought down our gross margin as a percentage of sales to 45.6% from 47.2% of the prior year.
Collection of cash from revenue and other sources increased by 17.2% to Taka 36,126 million. However, net cash generated from
Operating Activities declined by 13.4% to Taka 5,214.2 million from Taka 6,023.3 million of the prior year due to increased investment
in working capital consequent to the devaluation of Taka, rise in material costs and domestic infl ation. Further to aforesaid, the
company needed to maintain additional inventory to protect against supply chain disruptions and to support business growth.
Continuity of Other Income
The Company reports Cash Incentives on Exports on submission of claims fulfi lling the eligibility criteria. Claims for export incentives
are to be made after receipt of the export proceeds. Income from cash incentive depends on the value of export made and the amount
of proceeds remitted in a particular year. Any change in the government’s incentive policy may affect earnings from this source.
We earn royalty income from our subsidiary Nuvista Pharma and overseas partners for the sale of a few selected products. Income
from this source is linked to the volume of sales of these products. Royalty earned from the subsidiary Nuvista Pharma has been
eliminated as inter-company transactions in the consolidated fi nancials.
The Company distributed 8 million doses of Oxford/AstraZeneca COVID-19 vaccine during the reporting period, with a cumulative 15
million doses delivered under the tripartite agreement between the Serum Institute of India (SII), Government of Bangladesh (GOB)
and Beximco Pharma. The Company recorded a net amount of Taka 619 million as Vaccine Distribution Fee in the reporting period.
Given the broader availability of COVID-19 vaccines in Bangladesh, insignifi cant rate of infection, and widespread lack of desire for a
third dose from the general population, it is unlikely that GOB will seek to procure any further vaccine doses through this agreement
for the foreseeable future.
The Company recorded a net gain on foreign exchange mainly from upward translation of export receivables due to record depreciation
of Taka. Future income from this source depends on fl uctuation of exchanges rates between Taka and its counterpart currency.
Other items included under the head Other Income are either non-recurring or not material or inherent to the normal business
operation.
Reconstitution of the Board of Synovia Pharma
We have reconstituted the Board of Directors of Synovia Pharma PLC with Mr. Nazmul Hassan, Managing Director, Mr. Rabbur Reza,
Chief operating Offi cer, and Mr. Ali Nawaz, Chief Financial Offi cer of Beximco Pharma in the Board. Mr. Reza has been appointed
as Chief Executive Offi cer of Synovia Pharma in addition to his role as COO of Beximco Pharma. Dr. Md. Ibraheem Hosein Khan, an
Independent Director of Beximco Pharma has also been nominated as a Director of Synovia Pharma complying to the requirement of
Corporate Governance Code of Bangladesh Securities and Exchange Commission (BSEC).
Annual Report 2021-22 | Report of the Directors | 81
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Profi t and its Appropriation
Directors propose the appropriation of profi t as follows:
Particulars
Net Profi t After Tax
Adjustment for depreciation of Revalued Assets
Profi t Brought Forward
Profi t Available for Appropriation
Proposed Dividend:
Cash Dividend
Profi t Carried Forward
Amount in Taka’000
BPL (Stand-alone)
2021-22
5,161,344
6,358
22,295,424
27,463,126
(1,561,392)
25,901,734
2020-21
4,943,488
7,180
18,906,148
23,856,816
(1,561,392)
22,295,424
Dividend
The Board of Directors recommends 35% Cash Dividend i.e. Tk. 3.50 per share for the year ended 30 June 2022 for onward approval
at the Annual General Meeting. The Company has declared no interim dividend during the year.
Risks and Concerns
Enterprises are not free from risks that might arise both from internal and external fronts. Like any other business or industry, Beximco
Pharmaceuticals operating in a dynamic and competitive market, is also exposed to risks that may affect its business. The war in
Ukraine along with pandemic has left a devastating impact on global economy and business. The unpredictable and uncontrollable
challenges of this type bring the necessity of robust risk management to the forefront.
Beximco has robust policies and procedures in place at functional, operational and strategic level to mitigate risks. Our strong and
experienced executive team identify, assess and address diverse risks that might affect its operational or fi nancial targets. The board
and the management of the Company over the years have managed successfully to monitor and review risks on a continual basis.
Beximco Pharma takes appropriate mitigating measures to avoid, eliminate or reduce risks based on the variety and intensity of the
risk. While the Company has an appropriate system of vigilance and established procedures to address the risks arising from internal
or external sources, there are uncertainties beyond control of the Company which might affect its goals.
Economic Risks
The growth of pharmaceutical Industry in Bangladesh is predominantly driven by individual private spending which depends on the
economic advancement and consequent increase in the purchasing power of the people. Any decline in economic growth could, as
for any other industry, impact the future demand for pharmaceuticals.
Global economic instability also has a bearing on the industry and may impact its growth and profi tability. Bangladesh, like many
other countries is currently facing challenges due to the Ukraine war and the stretching effect of the pandemic. The government
has, taken up different measures to overcome the crisis. Bangladesh maintained a steady economic progress over the years with
substantial uplift in all socio-economic indexes and it is anticipated that the trend will continue in the immediate future overcoming
the current crisis. The country is going to be graduated as a middle-income country by 2026. Improvement in the standard of living,
education and increased health awareness reinforced by added purchasing power is expected to trigger the demand for healthcare
products in the coming years.
Market Risk
Interest Rate risk and Foreign Exchange risk are the two important market risks. The Company has foreign and domestic borrowing.
Any Change in interest rate might impact the fi nancial results of the Company. Foreign borrowings, in addition to interest rates, are
subject to foreign exchange risk. The Company, however, has strong revenue and cash fl ow stream to meet its fi nancial obligations.
The government has capped the maximum lending interest rate at 9%, which mitigates the risk of any abrupt increase in the rate
82 | Report of the Directors | Annual Report 2021-22
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of interest. Additionally, the Company foreign borrowing in relation to its volume of business is not signifi cant enough to materially
impact its profi tability.
The exchange rate between Taka and US Dollar over the years remained more or less stable with the government intervening in the
forex market. However, domestic currency in recent times has signifi cantly depreciated against the US Dollar. The government has
taken up different monetary, fi scal, and regulatory measures to improve its foreign currency reserve. The Company has exports in US
Dollar that give a natural hedge to partially neutralize the adverse impact of the exchange rate fl uctuations.
Input Price and Supply Chain Risk
Bangladeshi pharmaceutical companies are heavily dependent on imported APIs. Any substantial increase in prices in the international
market may affect future profi tability of the company. Moreover, disruptions in the supply chain network or situation like recent
pandemic may also make the availability of materials diffi cult and thus affecting the production.
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 infl uence on procurement prices.
Most of the suppliers have their local agent and the Company maintains close relationship with them. Due to the Company’s strong
network of sourcing and procurement, it managed uninterrupted production during the pandemic time through ensuring availability
of raw materials. Moreover, Beximco Pharma manufactures few of the APIs and the Company is strengthening its API manufacturing
capacity.
Product Liability Risk
Pharmaceutical products are usually exposed to high quality control risk. Each product is required to be marketed through a stringent
compliance procedure. Manufacturing of products require the fl exibility to accommodate the changing local and global regulatory
needs. Any deviation from the standard may result in serious market reputation damage and might also create a regulatory barrier.
Over the years Beximco Pharma has been recognized locally and globally for quality standards and manufacturing excellence. Our
manufacturing facilities are certifi ed by leading global regulatory agencies. As such Beximco Pharma is exposed to less quality control
risk. Additionally, the Company has taken adequate insurance cover to minimize the product liability risk.
Technology Risk
The pharmaceutical industry is a technology and research driven industry. The company’s management values data security,
automation of operations and technological advancement in the industry. The Company therefore continues to invest in state-of-the-
art technologies, R&D and laboratory infrastructure to build its manufacturing and innovation capabilities. It maintains close ties with
leading global companies and organizations to remain updated on the changes taking place in the industry.
Regulatory Risk
Uncertainties emanating from signifi cant changes in the pharmaceutical policy, regulations, tax regime or other business laws having
bearing on pharmaceutical sector may also threaten the growth potential of this business. However, policies of the Government of
Bangladesh are supportive to the industry and pose no immediate risk.
Retirement and Re-election of Directors
Mr. A S F Rahman and Mr. A B Siddiqur Rahman, Directors of the Company retire by rotation as per Articles 126 and 127 of the Articles
of Association of the Company and being eligible, offer themselves for re-election.
Detailed bio-data of the Directors are available in the Directors’ Profi le 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 45th Annual General Meeting of the Company has carried out the audit for the
year ended 30 June 2022. M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, BirUttam C.R. Datta Road, Dhaka-1205,
Annual Report 2021-22 | Report of the Directors | 83
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the Auditors of the Company retires at this meeting and has expressed their willingness to continue in offi ce for the year 2022-23.
The Board after due consideration recommends for the reappointment of M. J. Abedin & Co., Chartered Accountants as auditors for
the year 2022-23.
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 benefi ts 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 fi xed monthly salary. They are also entitled to certain
perquisites as per the terms of their employment contract. Additionally, Beximco Pharma has defi ned contribution plan (Provident
Fund) and a defi ned benefi t 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 benefi ts of statutory Workers’ Profi t Participation Fund.
Directors’ Statement on Financial Reports
Directors are pleased to report the following:
• The fi nancial 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 fl ow and changes in equity.
• Proper books of accounts of the Company have been maintained.
• Appropriate accounting policies have been consistently applied in preparation of the fi nancial 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 fi nancial statements.
• Internal Control System is sound in design and has been effectively implemented and monitored.
• Interests of the minority shareholders have been duly protected.
• There is no signifi cant doubt about the ability of the Company to continue as a going concern.
Declaration by CEO and CFO
Declaration by CEO and CFO on the Financial Statement of the Company is attached as Annexure- 1
Key Operating and Financial Data
The summarized key operating and fi nancial data for 2021-22 and immediately preceding fi ve 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 Notifi cation No. BSEC/
CMRRCD/2006-158/207/Admin/80 dated June 3, 2018 has been separately reported by the Managing Director.
84 | Report of the Directors | Annual Report 2021-22
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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
A S F Rahman
Salman F Rahman MP
Nazmul Hassan MP
Iqbal Ahmed
O K Chowdhury
A B Siddiqur Rahman
Reem H. Shamsuddoha
Quamrun Naher Ahmed
Mamtaz Uddin Ahmed
Dr. Md. Ibraheem Hosein Khan
Chairman
Vice Chairman
Managing Director
Director
Director
Director
Director
Director
Independent Director
Independent Director
12
12
12
10
12
12
12
12
12
12
The Pattern of Shareholding
The Shareholding of Directors, CEO, CFO, Company Secretary, Key Executives and their spouses and children are provided in
Annexure- 3.
Corporate Governance Compliance Report
In accordance with the requirement of Bangladesh Securities and Exchange Commission Notifi cation 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 2021-22 | Report of the Directors | 85
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Annexure-1
The Board of Directors
Beximco Pharmaceuticals Limited
Subject: Declaration on Financial Statements for the year ended on 30 June 2022
Dear Sirs,
Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notifi cation No. BSEC/CMRRCD/2016-158/207/Admin/80,
Dated June 03, 2018 & under section 2CC of the Securities and Exchange Ordinance 1969, we do hereby declare that:
1. The Financial Statements of Beximco Pharmaceuticals Limited for the year ended on 30 June 2022 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in the
Bangladesh and any departure there from has been adequately disclosed;
2. The estimates and judgments related to the fi nancial statements were made on a prudent and reasonable basis, in order for the
fi nancial statements to reveal a true and fair view;
3. The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in its
fi nancial statements;
4. To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance of
accounting records;
5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and procedures
of the Company were consistently followed; and
6. The management’s use of the going concern basis of accounting in preparing the fi nancial statements is appropriate and there
exists no material uncertainty related to events or conditions that may cast signifi cant doubt on the Company’s ability to continue
as a going concern.
In this regard, we also certify that:
We have reviewed the fi nancial statements for the year ended on 30 June 2022 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 Offi cer
86 | Report of the Directors | Annual Report 2021-22
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Annexure- 2
Key Operating and Financial Data
30 June 2022
30 June 2021
30 June 2020
30 June 2019
30 June 2018
30 June 2017
Taka in Thousand
Authorized Capital
Paid up Capital
Shareholders’ Equity
Fixed Assets (Gross)
15,000,000
15,000,000
15,000,000
15,000,000
9,100,000
9,100,000
4,461,121
4,461,121
4,055,564
4,055,564
4,055,564
4,055,564
44,636,004
37,364,865
32,797,450
29,864,324
27,351,837
25,072,426
57,035,893
47,887,415
45,615,625
43,454,027
39,081,675
31,692,789
Net Asset Value (NAV) Per Share -Taka
Market Price Per Share
Price Earnings Ratio (Times)
91.01
154.60
13.47
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
Number of Shareholders
54,446
55,248
56,101
56,177
57,982
62,741
Foreign Investors
ICB including ICB Investors Account
Sponsors, General Public & Other
Institutions
69
873
71
871
71
882
77
881
90
879
92
874
53,504
54,306
55,148
55,219
57,013
61,775
Number of employees
5,377
5,104
4,755
4,489
4,256
3,833
Total Sales
Export Sales
Gross Profi t
Profi t Before Tax
Net Profi t
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
Taka in Thousand
34,669,172
29,493,574
25,611,947
22,816,630
17,716,717
15,508,777
2,685,096
3,124,001
2,751,790
2,502,633
1,476,978
1,078,472
15,814,252
13,923,502
11,899,100
10,620,343
8,285,979
7,184,882
6,686,945
6,377,548
4,653,440
3,946,065
3,361,334
2,891,482
4,998,628
5,165,750
3,544,483
3,040,403
2,532,654
2,226,695
EPS/Restated EPS- Taka
Net Operating Cash Flow Per Share
New Product Launched-numbers
Cash Dividend
Stock Dividend
11.48
11.69
30
35%
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
15%
-
12.50%
12.50%
-
-
Annual Report 2021-22 | Report of the Directors | 87
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Graphical View of Selected Growth Indicators
TOTAL SALES
EXPORT SALES
Taka in million
9
6
6
,
4
3
3
4
9
4
,
9
2
2
2
1
6
,
5
2
2
7
1
8
,
2
2
2
7
1
7
,
7
1
9
0
5
,
5
1
55
5
5
8
6
6
,
2
2
4
2
1
1
,
3
3
222
2
5
7
7
,
2
2
3
0
00
0
5
5
,
2
2
7
77
7
4
44
4
4
,
1
8
8
88
7
7
0
0
0
0
0
,
1
2021 22
20021-22
00
2202022020-21
020 21
0019 20
222020019-20
20022018 19
0118-19
017 18
2222002020017-18
2022016 17
016-17
2021 22
220021-22
00
2202022020-21
020 21
019 20
2220220019-20
2022018 19
0118-19
017 18
2222002020017-18
2022016 17
016-17
NET PROFIT
9
9
9
9
,
4
4
6
6
1
1
,
5
5
4
4
5
5
,
3
3
0
4
0
0
,
3
3
3
33
3
5
5
,
2
2
7
22
2
2
2
2
2
,
2
2021 22
220021-22
00
2202022020-21
020 21
019 20
2220220019-20
2022018 19
0118-19
017 18
222200202017-18
2022016 17
016-17
TT
EPS (TAKA)
SHAREHOLDER’S EQUITY
8
4
.
1
1
9
4
.
1
1
8
8
8
.
7
7
8
4
4
.
7
7
5
55
2
2
.
6
6
999
9
4
4
4
.
5
6
3
6
,
4
4
4
5
6
3
,
7
3
3
7
9
7
,
2
3
3
4
6
8
,
9
2
2
2
5
3
,
7
2
2
2
7
0
,
5
2
2
2022016 17
016-17
2021 22
20021-22
88 | Report of the Directors | Annual Report 2021-22
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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 Offi cer, 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 2021-22 | Report of the Directors | 89
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Corporate Governance Compliance Report
As per condition No. 1(5)(xxvii)
Status of compliance with the conditions imposed by the Commissions Notifi cation 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) fi nancial 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 Certifi cate) holder, director or offi cer of
any stock exchange
Not a shareholder, director excepting independent director or offi cer 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 fi rm or audit fi rm engaged in internal audit
services or audit fi rm 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
Offi ce 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 offi cial 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
90 | Report of the Directors | Annual Report 2021-22
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
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
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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 fi eld mentioned in clause (b)
Qualifi cation 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 defi ne 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 2021-22 | Report of the Directors | 91
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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 fi nancial performance or results and fi nancial position as well
as cash fl ows for current fi nancial year with immediate preceding fi ve years explaining
reasons thereof
1(5)(xxv)(d)
Compare such fi nancial performance or results and fi nancial position as well as cash
fl ows with the peer industry scenario
1(5)(xxv)(e)
Briefl y explain the fi nancial 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 fi nancial statements, explaining such risk and
concerns mitigation plan of the company
Future plan or projection or forecast for company’s operation, performance and fi nancial
position
Declaration or certifi cation 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 certifi cate 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 Offi cer
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 Offi cer (CEO), Chief Financial Offi cer (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 defi ne 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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
92 | Report of the Directors | Annual Report 2021-22
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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 fi nancial
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 certifi cation 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 “fi nancially literate” and at least one to have 10 years of accounting/
fi nancial management experience
Vacancy in Audit Committee to be fi iled 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 fi nancial 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 fi nancial 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
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No such IPO/RPO/
Right Issue occurred
during the year.
Annual Report 2021-22 | Report of the Directors | 93
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Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
-
-
-
-
-
-
-
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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 fi ll the vacancy in case of death, resignation, disqualifi cation, 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 fi nancial 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)
6(5)(b)(i)
6(5)(b)(i)(a)
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 confi rmed 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:
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 suffi cient to attract,
retain and motivate suitable directors
6(5)(b)(i)(b)
Clear relationship among remuneration, performance & benchmarks
-
-
-
-
-
√
√
√
√
√
√
√
√
-
-
√
√
√
√
√
√
√
-
√
√
√
√
√
94 | Report of the Directors | Annual Report 2021-22
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
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6(5)(b)(i)(c)
Balance between fi xed and incentive pay refl ecting 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)
Identifi cation of qualifi cation 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 certifi cation services on compliance of corporate governance
Not involved in any other service that creates confl ict of interest
No partner or his/her family or employees of the external audit fi rms 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 offi cial 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 certifi cate on Corporate Governance Code of the Commission shall be
disclosed in the Annual Report
The professional who will provide the certifi cate 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 2021-22 | Report of the Directors | 95
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Annexure-5
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Report of the Audit Committee
I am pleased to present the report of the Audit Committee of Beximco Pharmaceuticals Limited in compliance to 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 confi ned
to overseeing the fi nancial reporting process, evaluating internal control system, reviewing signifi cant related party transactions,
assessing potential confl ict of interests, and reviewing the fi nancial statements of the Company and its subsidiaries. This report gives
a brief on the activities performed by the Audit Committee throughout the year.
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
Independent Director
Osman Kaiser Chowdhury, FCA
Reem H. Shamsuddoha
Director
Director
Mohammad Asad Ullah, FCS
Company Secretary
Chairman
Member
Member
Secretary
4/4
4/4
4/4
4/4
Review of Financial Statements
The Audit Committee in its meeting held in October 2022 thoroughly reviewed the draft of the annual audited fi nancial reports of the
Company prior to their submission to the board of directors for approval. The annual accounts of the subsidiary companies, namely
Nuvista Pharma Limited, Beximco Pharma API Limited and Synovia Pharma PLC, were also presented for review during the meeting.
It may be mentioned that Synovia Pharma became a subsidiary of the company with effect from October 1, 2021. Representatives
from the management of the Company placed the annual accounts of each individual company along with the independent auditor’s
report thereon. They briefed the Committee on the operating results, the acquisition and its valuation, material accounting policies,
consolidation process and the disclosures of relevant information in the annual accounts. Committee members discussed in detailed
the different aspects of the fi nancial statements, particularly on their 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 fi nancial
statements.
The Committee carefully examined the related party transactions carried out among different associated companies, including the
subsidiaries and found that the related party transactions were made on an arm’s length basis in the normal course of business.
These have been appropriately disclosed in the fi nancial statements as per IAS 24: ‘Related Party Disclosures’. The Committee
evaluated the report of the independent auditor on the annual fi nancial statements and found no material audit observation that
warrants the Board’s attention.
The Committee held three other meetings to review the interim fi nancial reports of the company and its subsidiaries prior to their
onward submission to the board for approval. In each of the cases, the committee held detailed discussion with the senior management
on various aspects of the fi nancial statements to ensure accuracy, consistency and compliance of the reports in all material respects.
Management representatives present in the meeting, replied to the queries raised and provided adequate explanations on operational,
fi nancial, accounting and reporting matters discussed in the meeting. The Committee, wherever applicable, gave necessary feedback
and guidance in connection with reporting and disclosure.
Annual Report 2021-22 | Report of the Audit Committee | 97
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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 2022 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 2022-23.
During the review period, the Committee also assessed the fi nancial 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. The Committee noted no material deviations or non-compliance or adverse audit fi nding that calls for
the board or shareholders’ attention.
Mamtaz Uddin Ahmed
Chairman
Audit Committee
98 | Report of the Audit Committee | Annual Report 2021-22
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Report on the Activities of Nomination and
Remuneration Committee (NRC)
Nomination and Remuneration Committee (NRC) is one of the two sub-committees of the Board constituted in compliance to the
Corporate Governance Code issued by Bangladesh Securities and Exchange Commission. The Committee has stipulated terms of
reference approved by the Board and it conducts its activities conforming to the established scope. Beximco Pharma has a three-
member NRC which includes one independent director.
Composition of the NRC
Present composition of the NRC is:
Name
Representation in the Board
Position in the Committee
Dr. Md. Ibraheem Hosein Khan
Independent Director
Iqbal Ahmed
Osman Kaiser Chowdhury, FCA
Director
Director
Mohammad Asad Ullah, FCS
Company Secretary
Chairman
Member
Member
Secretary
Summary of Activities of NRC
The Nomination and Remuneration Committee (NRC) held one meeting during the year under review. All the members of the
Committee except Mr Iqbal Ahmed attended the meeting. Mr. Md. Ali Nawaz, Chief Financial Offi cer, Mr. Jamal Ahmed Choudhury,
Director, Accounts & Finance and Mr. M A Arshad Bhuiyan, General Manager, HRM attended as representatives of the management
on invitation.
NRC reviewed the employee development policies and plans of the Company. Mr. M A Arshad, Head of HRM gave a comprehensive
presentation on the learning and development process at Beximco Pharma and the systematic approach adopted by the organization
to equip its employees with the requisite expertise and skills. He described the training need assessment process, learning and
development strategies, and the training programs the Company conducts across all functional areas of business. The Committee
evaluated the continuous learning and development system instilled in the Company, its plan for a knowledge-based workforce and
made specifi c suggestions to further reinforce the continuing endeavors.
Mr. ASF Rahman, Chairman and Mr. AB Siddiqur Rahman, a Director of the Company is retiring by rotation as per Articles of Association
of the Company. The Committee, after discussion, proposed to the Board for consideration of their re-election.
Directors of the Company receive fees for attending board and committee meetings. They are paid a fee of Taka 17,000 per meeting
which was last adjusted in 2017. The Committee considered that this requires an upward change and therefore, proposed to the
board to revise it to Taka 20,000 per meeting.
Annual Report 2021-22 | Report on the Activities of NRC | 99
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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 qualifi cation
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 fi tting the qualifying criteria as a Director. The Person (s) identifi ed for the proposed appointment as director
is evaluated in terms of the requirements laid down in prevailing legislation; specifi c 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 verifi cation 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 diversifi ed fi elds 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 qualifi ed 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 fi xed 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.
100 | Report on the Activities of NRC | Annual Report 2021-22
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Investor Relations
Communication with Shareholders and Investors
Beximco Pharma is aware of the investors’ right to continue receiving information about the company, its operations, fi nancial
performance, and other signifi cant information relevant for their investment decisions. The laws and regulations of the country defi ne
the privileges and rights of shareholders as well as the nature, timing, and method of disclosing information to the shareholders and
investors.
The shareholders and investors are kept well informed of the Company’s operation and performance through periodic updates
of price sensitive information, publications of fi nancial reports, investors’ meeting with the Company’s top executives and Annual
General Meeting (AGM) of the Company. Any price sensitive information are immediately released through the stock exchanges and
Company’s own website. In applicable cases such information are also published in the print media and online portals.
The Company regularly holds AGM as required by the Companies Act, 1994 to inform the shareholders about the overall affairs of the
Company and to obtain their consent on agenda placed in the meeting. Extra-ordinary General Meeting (EGM) are also held in cases
that require calling of such meeting. The board members and senior management of the Company remains present in those meetings
to answer queries and address any concerns of the shareholders and investors. This year, the AGM of the Company are being held
virtually by using digital platform.
The company’s senior management occasionally meets with enquiring investors, fund managers and analysts to discuss the current
and future business of the Company. This year, ten such meetings were held virtually and physically.
Beximco Pharma has a distinct Company Secretarial Department adequately manned with qualifi ed 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 fi nance function to deal with queries and information requests from investors, regulators etc.
We, 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
The Company publishes unaudited fi nancial statements for fi rst, second and third quarters and full year Audited Financial Statements
and release them through stock exchanges. Summary of the fi nancial statements are also published through newspapers and online
portals as required by law. The Company prepares annual report that contains detailed operational and fi nancial information along
with other statutory disclosures. All the reports are available in the Company’s website.
Financial Reports and Reporting Calendar
Latest timing of release of the fi nancial statements are:
U n - a u d i t e d
U n - a u d i t e d
U n - a u d i t e d
A u d i t e d
Q1
Q2
November
January
Q3
April
Full
Year
October
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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
12.5% 15.0% 15.0% 35.0% 35.0%
2017-18
2018-19
2019-20*
2020-21
2021-22
* In addition to Cash, 10% Stock Dividend was declared in 2019-20
102 | Investor Relations | Annual Report 2021-22
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Stock Market Performance
Dhaka Stock Exchange (DSE)
Particulars
30 June 2022
30 June
2021
30 June
2020
30 June
2019
30 June
2018
Share Price- Dhaka
Share Price- AIM
BDT 154.6
BDT 177.3
BDT 69.2
BDT 83.5
BDT 93.9
GBP 0.705
GBP 0.860
GBP 0.355
GBP 0.389
GBP 0.510
Market Capitalization- Dhaka Price
BDT 68.9bn
BDT 79.1bn
BDT 28.1bn
BDT 33.9bn
BDT 38.1bn
EPS- Taka
P/E Ratio (Dhaka Price)
Dividend (Cash)
Stock Dividend
11.48
13.5
35% (Proposed)
--
11.49
15.4
35%
--
7.88
8.8
15%
10%
7.48
11.2
15%
-
6.25
15.0
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
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 offi cial 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:
Annual Report 2021-22 | Investor Relations | 103
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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 justifi ed by the profi ts of the company. The
directors may, before recommending any dividend, set aside out of the profi ts 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 profi ts or may employ such profi ts in the business of the
company or otherwise as they think fi t.
The law further provides that dividends are to be paid out of profi ts of the year or any other undistributed profi ts.
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 fi ve 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 profi ts as dividend and the
plan for utilization of the undistributed profi ts 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 profi t earned in any year. According to the said provision if a company retains or transfers more than 70% of its after tax profi t
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 fi nancial performance. However,
the Board may also declare interim dividend based on periodic fi nancial 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 fi nancial 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:
- Company’s current net earnings, accumulated distributable reserves/surplus and availability of free cash fl ow
- Potential growth opportunities and investment requirements; assessment of benefi ts 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 fi nance
- 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
104 | Investor Relations | Annual Report 2021-22
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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 fi nancial year. Such
decisions are based on the results of the audited fi nancial statements. The dividend recommendations made by the directors are
notifi ed 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 fi xed by the Company for the entitlement of
such dividend.
Policy Review and Amendment
Apart from mandatory revision, modifi cation 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 fi t.
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.
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Snapshots of 45th Annual General Meeting (Held on virtual platform)
The 45th Annual General Meeting of the shareholders of Beximco Pharmaceuticals Limited held under virtual
platform on December 23, 2021.
106 | Investor Relations | Annual Report 2021-22
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Financial Statements
Beximco Pharma and Its Subsidiaries
(Consolidated)
For the Year ended June 30, 2022
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 107
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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 fi nancial statements of Beximco Pharmaceuticals Limited (the “Company”), which comprise the Consolidated
Statement of Financial Position as at June 30, 2022 and Consolidated Statement of Profi t 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 signifi cant 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. The newly acquired subsidiary Synovia Pharma PLC used to follow January-December accounting year. However Synovia Pharma
prepared audited fi nancial statements for the six month ending June 30, 2022 to align its accounting year with that of the parent company. We
have audited the Financial statements of Beximco Pharma API Limited and expressed our unmodifi ed opinion on those statements vide our report
dated October 27, 2022. The Financial Statements of Nuvista Pharma Limited and Synovia Pharma PLC were audited by A. Qasem & Co. Chartered
Accountants, who through their report dated October 13, 2022 and October 12,2022 respectively, have also expressed unmodifi ed opinion on those
statements.
In our opinion, the accompanying consolidated fi nancial statements of the Company give a true and fair view of the consolidated fi nancial position
of the Company as at June 30, 2022, and of its consolidated fi nancial performance and its consolidated cash fl ows 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 Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the
Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code)
together with the ethical requirements that are relevant to our audit of the fi nancial statements in Bangladesh, and we have fulfi lled our other ethical
responsibilities in accordance with these ethical requirements and the IESBA Code. We believe that the audit evidence we have obtained is suffi cient
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 signifi cance in our audit of the consolidated fi nancial statements
of the current period. These matters were addressed in the context of our audit of the consolidated fi nancial 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. 41,760,330,727 as at
June 30, 2022.
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. Classifi cation 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 signifi cant 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 identifi ed as a key audit matter due
to the signifi cance of this balance to the consolidated fi nancial
statements and that there is signifi cant measurement uncertainty
involved in this valuation.
See Note No. 4 to the consolidated fi nancial 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 classifi cation 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 reclassifi cation
from capital work in progress to ready for use, with the date of
the act of completion of the work
108 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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Risk
Our response to the risk
Valuation of Inventory
The inventory of Tk. 10,405,295,079 as at June 30, 2022 was held
at different locations across the country.
We verifi ed 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 signifi cant to the consolidated
Financial Statements and there is measurement uncertainty
involved in this valuation, the valuation of inventory was signifi cant
to our audit.
See Note No. 8 to the consolidated fi nancial 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.
Our audit procedures amongst others included the following:
We focused on identifi cation of related parties and disclosure of
related party transactions in accordance with relevant accounting
standards.
• Evaluated the design and tested the operating effectiveness
of controls over identifi cation and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and tested
material accounts balances.
• Evaluated the disclosures in the Consolidated fi nancial
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 fi nancial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this
auditor’s report.
Our opinion on the consolidated fi nancial 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 fi nancial statements, our responsibility is to read the other information identifi ed above when it
becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated fi nancial 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 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 109
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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 fi nancial 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 fi nancial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated fi nancial 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 fi nancial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated fi nancial 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
infl uence the economic decisions of users taken on the basis of these consolidated fi nancial 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 fi nancial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is suffi cient 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 signifi cant 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 fi nancial 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 fi nancial statements, including the disclosures, and whether
the consolidated fi nancial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain suffi cient appropriate audit evidence regarding the fi nancial information of the entities or business activities within the Company
to express an opinion on the consolidated fi nancial 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 signifi cant
audit fi ndings, including any signifi cant defi ciencies 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 signifi cance in the audit of the
consolidated fi nancial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefi ts of such communication.
110 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, The Securities and Exchange Rules 2020 and relevant notifi cations 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 verifi cation 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 Profi t or Loss and Other
Comprehensive Income (Profi t & 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 27, 2022
M. J. ABEDIN & CO.
Chartered Accountants
Reg No. N/A
Hasan Mahmood FCA
Enrollment No: 0564
DVC:N/A
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 111
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Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Financial Position
As at June 30, 2022
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Right-of-use Assets
Intangible Assets
Deferred Tax Asset
Goodwill
Other Investments
Current Assets
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances and Deposits
Advance Income Tax
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, Pension 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, 2022
4
4(a)
5
6
7
8
9
10
11
12
13
47,728,777,460
41,760,330,727
618,891,376
4,562,988,045
88,640,228
674,570,185
23,356,899
18,419,258,282
10,405,295,079
718,797,256
3,142,817,194
2,787,039,904
196,635,028
1,168,673,821
66,148,035,742
40,600,497,817
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,116,896,688
20,531,723
27,747,885,918
Amount in Taka
June 30, 2021
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
7,142,863,477
661,722,724
2,873,844,874
2,416,948,496
-
675,466,608
52,246,084,026
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
14
4,035,506,641
334,306,627
44,636,004,458
37,364,864,829
15
16
17
18
19
20
21
8,776,099,208
3,454,188,843
2,785,072,661
2,536,837,704
12,735,932,076
6,850,550,319
2,065,962,471
2,465,039,217
1,166,881,586
88,049,428
99,449,055
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
66,148,035,742
52,246,084,026
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
112 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Profi t or Loss and Other Comprehensive Income
For the Year ended June 30, 2022
Notes
July 2021- June 2022
July 2020- June 2021
Amount in Taka
Net Revenue
Cost of Goods Sold
Gross Profi t
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profi t from Operations
Other Income
Finance Cost
Profi t Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profi t Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profi t After Tax
Profi t/(Loss) Attributable to:
Owners of the Company
Non-Controlling Interest
22
23
26
27
28
29
30
34,669,172,052
(18,854,919,733)
29,493,573,869
(15,570,071,581)
15,814,252,319
13,923,502,288
(8,912,966,372)
(1,163,406,037)
(7,749,560,335)
(7,272,794,940)
(896,648,965)
(6,376,145,975)
6,901,285,947
6,650,707,348
1,146,717,162
(1,001,835,523)
7,046,167,586
(359,222,585)
6,686,945,001
(1,688,316,804)
(1,191,180,488)
(497,136,316)
4,998,628,197
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
5,123,136,712
(124,508,515)
4,998,628,197
5,127,693,711
38,056,021
5,165,749,732
Other Comprehensive Income/(Loss)
Total Comprehensive Income
31
6,764,517
5,005,392,714
12,840,831
5,178,590,563
Total Comprehensive Income Attributable to:
Owners of the Company
Non-Controlling Interest
5,129,901,229
(124,508,515)
5,005,392,714
5,140,534,542
38,056,021
5,178,590,563
Earnings Per Share (EPS)
32
11.48
11.49
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 113
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Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Changes in Equity
For the Year Ended June 30, 2022
As at June 30, 2022
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, 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
NCI at the date of
acquisition-SPP
Total Comprehensive
Income:
Profi t 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
Balance as on June 30,
2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,857,134,718
3,857,134,718
-
5,123,136,712
5,123,136,712
(124,508,515)
4,998,628,197
6,764,517
-
6,764,517
-
6,764,517
-
(1,561,392,312)
(1,561,392,312)
(31,426,189)
(1,592,818,501)
(6,358,656)
1,430,698
-
-
6,358,656
-
-
1,430,698
-
-
-
1,430,698
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,116,896,688
20,531,723
27,747,885,918
40,600,497,817
4,035,506,641
44,636,004,458
Net Asset Value (NAV) Per Share (Note-33)
Tk.
91.01
As at June 30, 2021
Balance as on July 01,
2020
Total Comprehensive
Income:
Profi t for the Year
Other Comprehensive
Income/(Loss)
Transactions with the
Shareholders:
Cash Dividend
Stock Dividend
Adjustment for Depreciation
on Revalued Assets
Adjustment for Deferred Tax
on Revalued Assets
Balance as on June 30,
2021
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
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
-
-
-
405,556,440
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(7,180,526)
3,237,721
-
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)
(405,556,440)
7,180,526
-
-
-
3,237,721
-
-
-
-
-
3,237,721
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
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
114 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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Notes
July 2021-June 2022
July 2020-June 2021
Amount in Taka
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Cash Flows
For the Year ended June 30, 2022
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
Investment in Subsidiary
Disposal of Property, Plant and Equipment
Dividend Received
Net Cash Used in Investing Activities
Cash Flows from Financing Activities :
36,125,979,245
(28,565,273,290)
7,560,705,955
(1,002,350,838)
3,055,358
(1,347,234,025)
5,214,176,450
(2,931,097,076)
(8,400,918)
(4,766,635,704)
24,063,832
2,015,444
30,833,168,257
(22,500,770,314)
8,332,397,943
(861,452,888)
2,377,286
(1,450,058,386)
6,023,263,955
(2,520,682,923)
(37,734,793)
-
32,831,171
940,700
(7,680,054,422)
(2,524,645,845)
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
2,730,647,211
1,507,676,748
(1,623,098,759)
2,615,225,200
149,347,228
973,963,625
45,362,968
1,168,673,821
(504,636,764)
(2,375,180,232)
(578,351,025)
(3,458,168,021)
40,450,089
635,016,519
-
675,466,608
11.69
13.50
* Includes Cash and Cash Equivalents of Synovia Pharma PLC at the date of acquisition.
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 115
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Beximco Pharmaceuticals Limited and its Subsidiaries
Notes to the Financial Statements
As at and for the year ended June 30, 2022
1. The Reporting Entity
1.1 About the Company
Beximco Pharmaceuticals Limited (Beximco Pharma/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 fl uids and got enlisted with the Alternative Investment Market (AIM) of the London Stock
Exchange through issuance of Global Depository Receipts (GDRs). Shares of the Company are traded in Dhaka and Chittagong Stock Exchanges
of Bangladesh. Its GDRs are traded in AIM of the London Stock Exchange.
In 2018, BPL acquired 85.22% shares of Nuvista Pharma Limited (Nuvista Pharma/NPL)– a non-listed pharmaceutical company in Bangladesh
specializing in hormones and steroid drugs. In October 2021, BPL acquired majority stake (54.6%) in Sanofi Bangladesh Limited from Sanofi
Group represented through May & Baker Limited and Fisons Limited. The company was subsequently renamed as Synovia Pharma PLC (Synovia
Pharma/SPP). Bangladesh Government holds 45.4% shares of the company represented through Bangladesh Chemical Industries Corporation
(20%) and Ministry of Industries (25.4%). SPP is a non-listed pharmaceutical company based in Bangladesh.
The corporate headquarters of Beximco Pharma is based in 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 certifi ed by leading global regulatory authorities
including United States Food and Drug Administration (USFDA).
1.2 The Subsidiaries
Nuvista Pharma Limited (NPL)
Nuvista Pharma, formerly Organon (Bangladesh) Ltd., was a subsidiary of Netherlands based Organon International. 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
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. In 2011, the company through amendments to its memorandum of association converted it into
a public limited company. In 2018, Beximco Pharma acquired majority shareholdings in Nuvista Pharma and thus it became the immediate and
ultimate parent of the company.
Synovia Pharma PLC (SPP)
Synovia Pharma PLC (formerly Sanofi Bangladesh Limited) had been a part of Sanofi S.A., a global biopharmaceutical company focused on
human health. The company has been operating in Bangladesh since 1958 as part of the British chemical company, May & Baker. Following
series of mergers, it was renamed as Sanofi Bangladesh Limited in 2013 before being acquired by Beximco Pharma in 2021 and subsequently
renamed as Synovia Pharma PLC. SPP’s state-of-the-art manufacturing facilities, including a PIC/S certifi able manufacturing facility for the
leading antibiotic, cephalosporin, are spread over c25 acres of land, located at Tongi, Gazipur. SPP has over 900 employees and produces
approximately 100 branded generic products predominantly for the local market. The company also imports fi nished formulation products for
distribution and sale in Bangladesh.
Beximco Pharma API Limited (BPAL)
Beximco Pharma API Limited was formed with an intend to set up a facility at API Industrial Park to manufacture Active Pharmaceutical Ingredients
(APIs) for domestic and international markets. It is a private limited company 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 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 and 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-fi brinolytic, anti-infective,
gastrointestinal, musculoskeletal, respiratory, vitamin & mineral supplement and women’s health products which are sold predominantly in the
domestic market.
SPP produces generic pharmaceutical products and has a strong presence in cardiology, diabetes, oncology, dermatology and CNS. SPP also
imports certain global brands of Sanofi including vaccines, insulins and chemotherapy drugs for sale in Bangladesh market.
NPL and SPP also provide contract manufacturing services.
116 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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2. Basis of Preparation of Financial Statements
2.1 Statement of Compliance
The fi nancial 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 fi nancial statements have been prepared on Historical Cost basis except for certain Property, Plant and Equipment measured at revalued
amount. The Tangible and Intangible Assets and Liabilities of the acquired subsidiaries have 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 fl ow statement has been prepared
on cash basis.
2.3 Reporting Period
Accounting year of Beximco Pharmaceuticals Limited (BPL) and its subsidiaries Nuvista Pharma Limited (NPL) and Beximco Pharma API Limited
(BPAL) begins on July 1 and ends on June 30. Synovia Pharma PLC (SPP) used to follow January-December accounting year. Following acquisition
by Beximco Pharma, the accounting year of SPP has been changed to July-June which shall come into effect from July 1, 2022.
BPL acquired SPP on October 1, 2021 and as such consolidated fi nancial statements covers nine months’ fi nancials (October 1, 2021 to June 30,
2022) for SPP. Synovia Pharma carried out full year’s audit (January-December 2021) to comply with the regulatory requirement and facilitate tax
submissions. The company had audited its fi nancial statements at the date of acquisition covering January-September 2021 and subsequently
carried out a half-yearly audit (January-June 2022) to align its accounting year with that of Beximco Pharma. Financials for the nine months has
been consolidated based on the aforementioned audited statements.
2.4 Comparative Information
The current reporting being the fi rst year of acquisition of the subsidiary Synovia Pharma, no comparable prior year information for SPP is
relevant for reporting in the consolidated fi nancial statements.
3. Signifi cant Accounting Policies
3.1 Basis of Consolidation
The fi nancial statements of the subsidiaries have been consolidated with those of Beximco Pharmaceuticals Limited in accordance with IFRS
10: Consolidated Financial Statements.
The Company acquired 85.22% and 54.6% shares of the issued and paid up capital of Nuvista Pharma and Synovia Pharma, respectively.
These ownership interests are adequate enough to establish control over NPL & SPP and thus BPL meets the conditions as stated in IFRS 10:
Consolidated Financial Statements to consider NPL and SPP as subsidiaries.
Beximco Pharma API Limited is fully owned by BPL and thus it 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 among the Company and its 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 have been measured at fair value of the net assets of the acquired companies in
proportion to the shares held by the non-controlling shareholders. Profi t or Loss and Other Comprehensive Income subsequent to the acquisitions
have been allocated to the owners of the Company and to the NCIs in proportion to their respective share and disclosed in the fi nancial
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 identifi able net assets over the acquisition-date fair value of the identifi able
net assets of the subsidiary.
3.5 Amortization of Intangible Asset
Fair value of identifi able intangible assets of subsidiaries at acquisition are amortized over a period of 25 years. Other intangible assets are
amortized over their estimated useful period.
3.6 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
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 117
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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 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. Beximco Pharma’s share of accumulated loss of BioCare as on 30 June 2022 (includes provisional estimates for six months since
its audited fi nancials as on December 31,2021) exceeds its investment by an amount of Tk. 33,458,283. Beximco Pharma has not recognized
this loss 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.
3.7. Basis of Estimation of Fair Values at Acquisition
The Company engaged PricewaterhouseCoopers Bangladesh Pvt. Ltd. to provide estimates of the Fair Value for the tangible assets and identifi ed
intangible assets of Synovia Pharma on acquisition date as per criteria set out in International Financial Reporting Standards-IFRS 3: Business
Combination. Management has considered the report of the said independent fi rm in allocating the total consideration paid for the acquisition
among various classes of acquired assets in compliance of the requirement of IFRS 3.
Tangible fi xed assets other than land were valued using the depreciated replacement cost method. Depreciated replacement costs refl ect
adjustments for physical deterioration as well as functional and economic obsolescence. Land was valued at prevailing market price taking into
consideration factors like location, size and industrial or other use, availability of infrastructure etc., among others. The intangible assets relating
to Developed Products has been valued using the Multi-period Excess Earnings Method.
3.8. Acquisition related Costs
All advisory, accounting, valuation, legal or other professional/consulting fees and general administrative costs related to the acquisition of
business has been accounted for as expense.
118 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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4. Property Plant and Equipment
As on June 30, 2022
Amount in Taka
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Offi ce
Equipment
Total
Property
Plant &
Equipment
Right-of-use
Assets
Total
Cost
As on July 01, 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
SPP’s assets (at cost)
1,010,047,500
952,490,521
1,099,807,163
126,346,894
Fair value adjustment (SPP)
2,391,000,000
48,000,000
98,000,000
-
153,183,693
402,456,266
91,358,324
-
-
-
282,370,491
3,471,062,569
140,256,509
3,611,319,078
-
2,537,000,000
-
2,537,000,000
51,054,159
698,052,442
360,555,764
1,058,608,206
7,254,054,359
10,253,459,155
96,202,893
24,214,260
96,105,405
17,724,036,072
-
17,724,036,072
-
-
-
-
130,522,554
-
130,522,554
(130,522,554)
-
(53,601,745)
(642,221)
(30,934,830)
(2,511,295)
(87,690,091)
(22,039,905)
(109,729,996)
Cost as on June 30, 2022
7,468,877,096
16,536,450,073
28,647,334,497
666,140,804
932,927,311
1,080,834,236
55,332,564,017
868,647,224
56,201,211,241
Additions
Transferred in & Capitalized
Transferred from Right-of-use
Assets
Disposal during the Year
-
-
-
-
Accumulated Depreciation
As on July 01, 2021
Accumulated balance (SPP)
Depreciation Charged
Depreciation (Fair value adjustment)
Transferred from Right-of-use
Assets
Adjustment for Assets disposed off
Accumulated Depreciation as on
June 30, 2022
-
-
-
-
-
-
-
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
747,700,772
783,105,286
87,622,496
-
221,388,943
1,839,817,497
97,088,324
1,936,905,821
283,608,206
948,712,422
25,952,697
39,151,781
63,846,658
1,361,271,764
78,737,938
1,440,009,702
4,883,364
17,002,060
-
-
-
-
104,543,070
-
-
21,885,424
-
21,885,424
104,543,070
(104,543,070)
-
(46,032,684)
(606,333)
(27,101,816)
(2,503,373)
(76,244,206)
(22,039,905)
(98,284,111)
3,407,250,642
9,210,174,678
289,717,754
767,553,171
732,219,217
14,406,915,462
249,755,848
14,656,671,310
-
-
Net Book Value June 30, 2022
7,468,877,096
13,129,199,431
19,437,159,819
376,423,050
165,374,140
348,615,019
40,925,648,555
618,891,376
41,544,539,931
Capital Work in Progress
Carrying Value as on June 30,
2022
Carrying Value as on June 30,
2021
4 (a). Right-of-use Assets
At Cost
Accumulated Depreciation
4 (b). Capital Work in Progress
834,682,172
-
834,682,172
41,760,330,727
618,891,376
42,379,222,103
36,211,375,594
319,884,849
36,531,260,443
June 30, 2022
868,647,224
(249,755,848)
618,891,376
Amount in Taka
June 30, 2021
520,397,410
(200,512,561)
319,884,849
The unit 3 manufacturing facility of Beximco Pharma has been completed and now in ready-to-use status. The commercial operation has partially commenced
during the reporting period. The plant will be fully commercially operational once the product/technology transfer, which is being done in phases, are complete.
The Capital Work in Progress has been transferred to respective assets under Property, Plant and Equipment catagory and related deprecation has been charged
accordingly.
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 119
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5. Intangible Assets
Particulars
Cost
As on July 01, 2021
Cost of SPP’s Assets at acquisition date
Acquisition date Fair value of SPP’s Intangibles
Addition / Transferred in & Capitalized
Marketing Rights,
Brand &Product
development
ERP &
Software
Trade Name &
Trade Marks
Total
Amount in Taka
1,514,157,713
192,609,453
68,870,674
1,775,637,840
104,124,112
77,035,587
3,228,000,000
-
113,729,912
13,566,031
-
-
-
181,159,699
3,228,000,000
127,295,943
As on June 30, 2022
4,960,011,737
283,211,071
68,870,674
5,312,093,482
Amortization
As on July 01, 2021
354,671,532
33,420,732
6,851,767
394,944,031
Accumulated balance of SPP at acquisition date
77,545,575
71,500,897
-
149,046,472
Amortized During the year
As on June 30, 2022
179,731,237
21,736,630
3,647,067
205,114,934
611,948,344
126,658,259
10,498,834
749,105,437
Balance as on June 30, 2022
4,348,063,393
156,552,812
58,371,840
4,562,988,045
Balance as on June 30, 2021
1,159,486,181
159,188,721
62,018,907
1,380,693,809
6. Goodwill
Acquisition of 85.22% stake in Nuvista Pharma Limited
Acquisition of 54.6% stake in Synovia Pharma PLC.- Note (a) and (b)
(a) Value of Goodwill from acquisition of SPP:
Purchase Consideration*
Share of Non-controlling Interest at acquisition date
Less: Acquisition date Fair Value of Identifi able Net Assets
Amount in Taka
June 30, 2022
June 30, 2021
546,691,213
127,878,972
546,691,213
-
674,570,185
546,691,213
4,766,635,704
3,857,134,718
8,623,770,422
(8,495,891,450)
127,878,972
*Purchase consideration includes share transfer fee of Taka 70,442,892 paid to the Registrar of Joint Stock Companies and Firms.
120 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
(b) Acquisition date Fair Value of Identifi able Net Assets is arrived at as follows:
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Assets:
Land
Buildings
Plant and Machinery
Furniture and Fixture
Offi ce Equipment
Capital Work in Progress
Intangible Assets
Right-of-Use Assets
Deferred Tax Assets
Current Assets
Total Assets (A)
Less Liabilities:
Pension Fund
Gratuity Fund
Lease Liabilities
Current Liabilities
Total Liabilities (B)
Fair Value of Identifi able Net Assets (A-B)
7. Other Investments
Datails
Bangladesh Export Import Co. Ltd.
Central Depository Bangladesh Ltd. (CDBL)
Amount in Taka
3,401,047,500
252,789,749
414,701,877
38,724,398
60,981,548
117,321,809
3,260,113,227
43,168,185
37,074,071
4,444,075,602
12,069,997,966
5,334,216
105,759,453
33,716,290
3,429,296,557
3,574,106,516
8,495,891,450
June 30, 2022
June 30,2021
Number of Shares
Value Number of Shares
167,854
21,787,449
571,182
1,569,450
23,356,899
167,854
571,182
Value
15,022,932
1,569,450
16,592,382
a. The shares of Bangladesh Export Import Co. Ltd. are listed with Dhaka and Chittagong Stock Exchanges. The market value of each share of
Bangladesh Export Import Co. Ltd. as on June 30, 2022 was Tk. 129.80 (June 30, 2021: Tk.89.50). The fair value gain of Tk. 6,764,517 has been
accounted for, as Other Comprehensive Income following IFRS 9:Financial Instruments.
b. 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.
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 121
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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
10. Accounts Receivable
This consists of :
Trade Receivable
Other Receivable
Amount in Taka
June 30, 2022
June 30, 2021
2,486,292,696
1,299,682,358
684,808,447
340,572,871
4,751,533,955
3,234,868,408
1,171,926,025
1,134,669,306
98,605,393
82,051,648
37,709,095
82,829,613
79,764,262
22,520,999
1,092,367,820
947,955,660
10,405,295,079
7,142,863,477
558,966,964
553,939,317
20,974,250
138,856,042
16,841,919
90,941,488
718,797,256
661,722,724
2,963,143,615
2,725,572,936
179,673,579
148,271,938
3,142,817,194
2,873,844,874
Accounts Receivable is reported net of provision for bad debts of Tk. 28,354,845. It includes an amount of Tk. 1,016,268,270, equivalent USD
11,821,851 (June 30, 2021: Tk. 840,777,271, USD 9,985,468) 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. 1,020,929,771 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.1,270,079,144 on March 31, 2022.
No amount was due from the directors, managing agent, managers and other offi cers of the company and any of them severally or jointly with
any other person.
Aging of Trade Receivable :
Amount due within 6 months
Amount due for 6 months & above
Amount in Taka
2,841,350,572
2,658,627,358
121,793,043
66,945,578
2,963,143,615
2,725,572,936
122 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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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
Advance for Expenses including Capital Expenditure
Bank Guarantee Margin
Salary Advance / Loan
Rent Advance
Vehicle Advance
Raw & Packing Material
Prepaid Insurance
Overseas Liaison Offi ce
Others
Amount in Taka
June 30, 2022
June 30, 2021
259,313,897
619,340,481
37,673,863
249,538,566
488,144,349
25,777,861
158,893,927
167,929,080
2,133,040
2,650,135
654,535,757
423,936,402
18,826,990
93,892,900
38,745,324
225,975,541
449,393,148
53,234,921
67,005,418
20,831,185
186,444,554
34,886,833
148,885,137
460,856,879
36,030,920
58,207,996
108,074,697
112,828,599
2,787,039,904
2,416,948,496
No amount was due from the directors, managing agent, managers and other offi cers of the company and any of them severally or jointly
with any other person, except as stated above.
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 & SND 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
279,615,091
164,562,735
736,688,901
152,369,829
470,765,642
40,138,231
1,168,673,821
675,466,608
10,000,000,000
10,000,000,000
5,000,000,000
5,000,000,000
15,000,000,000
15,000,000,000
517,757,500
517,757,500
3,570,939,420
3,570,939,420
5,951,250 Ordinary Shares issued in exchange of Shares of Beximco Infusions Ltd.
59,512,500
59,512,500
31,291,147 Ordinary Shares issued on conversion of Preference Shares
312,911,470
312,911,470
4,461,120,890
4,461,120,890
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 123
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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
14. Non-Controlling Interest
a. Nuvista Pharma
Non-Controlling Interest (Opening )
Proportionate profi t/(loss)
Less: Cash Dividend
b. Synovia Pharma
Non-Controlling Interest (Opening )
Non-controlling Interest at the date of acquisition
Proportionate profi t/(loss)
Less: Cash Dividend
June 30, 2022
June 30, 2021
Number of
Shares
% of Share
Capital
Number of
Shares
% of Share
Capital
9,058,888
9,080,095
116,305,973
134,444,956
43,246,139
84,386,054
97,533,003
86,501,937
311,667,133
446,112,089
2.03
2.04
26.07
30.14
9.69
18.92
21.86
19.39
69.86
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
2.03
2.04
26.11
30.18
11.64
18.92
19.68
19.58
69.82
100.00
446,112,089
100.00
Amount in Taka
June 30, 2022
June 30, 2021
334,306,627
302,329,006
39,701,872
38,056,021
(6,946,744)
(6,078,400)
367,061,755
334,306,627
-
3,857,134,718
(164,210,387)
(24,479,445)
3,668,444,886
-
-
-
-
-
4,035,506,641
334,306,627
124 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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15. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Project Loan - ODDO BHF Aktiengesellshaft, Frankfurt, Germany
Term Loan- Agrani Bank
Lease Liability
Term Loan-Dhaka Bank
Lease Liability
This consists of as follows:
Within one year
More than one year
16. Liability for Gratuity, Pension and WPPF & Welfare Funds
Gratuity Payable
Pension Payable
Workers Profi t 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
Standard Chartered Bank
Citibank
Amount in Taka
June 30, 2022
June 30, 2021
670,863,306
972,696,465
2,313,748,864
-
456,761,583
234,020,629
12,815,090
-
3,454,188,843
1,206,717,094
160,579,032
456,761,583
617,340,615
113,976,268
234,020,629
347,996,897
1,618,961,997
1,322,046,817
5,334,216
-
1,160,776,448
1,013,210,949
2,785,072,661
2,335,257,766
4,817,103,014
3,077,454,947
409,733,361
1,014,765,029
492,341,234
644,508,608
461,766,072
24,913,289
184,741
510,141,234
254,745,071
166,074,847
-
-
6,850,550,319
5,023,181,128
18. Long Term Borrowings-Current Maturity
This consists of as follows:
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
938,924,362
1,287,429,745
Term Loan- Agrani Bank
Lease Liability
Term Loan-Dhaka Bank
960,000,000
160,579,032
6,459,077
-
113,976,268
-
2,065,962,471
1,401,406,013
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 125
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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’ Profi t Participation and Welfare Funds -(current year)
June 30, 2022
1,359,479,518
889,344,958
110,410,808
105,803,933
Amount in Taka
June 30, 2021
769,204,884
800,770,806
298,396,187
96,676,303
2,465,039,217
1,965,048,180
807,659,001
359,222,585
1,166,881,586
296,650,070
322,749,293
619,399,363
21. Dividend Payable / Unclaimed Dividend
The Dividend Payable/Unclaimed dividend as on June 30, 2022 includes Tk. 45,080,943 relating to BPL’s dividend for 2020-21 which has
been paid but not yet claimed.
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)
Finished Goods available
Cost of Physician Sample transferred to Sample Stock
Finished Goods (Closing)
July 2021-June 2022
July 2020-June 2021
31,889,033,479
2,685,096,151
95,042,422
26,331,187,249
3,124,001,260
38,385,360
34,669,172,052
29,493,573,869
355,079,579
14,971,042,279
4,908,572,206
20,234,694,064
(684,808,447)
19,549,885,617
1,803,930,326
295,801,260
21,649,617,203
(308,404,774)
(2,486,292,696)
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)
18,854,919,733
15,570,071,581
126 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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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 Certifi cation 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 2021- June 2022
July 2020- June 2021
Amount in Taka
4,688,041,185
16,305,066,467
(6,022,065,373)
14,971,042,279
4,114,208,490
12,446,241,540
(4,452,367,327)
12,108,082,703
1,978,710,523
622,009,889
56,200,557
9,220,153
6,264,023
49,824,288
9,902,080
343,682,103
7,835,447
59,582,841
12,513,215
30,697,402
351,013,808
13,789,240
8,645,632
1,296,771,715
35,053,987
16,855,303
4,908,572,206
641,656,781
39,745,136
88,998,284
6,898,815
35,297,173
9,891,702
12,985,629
3,095,000
10,205,953
27,457,139
31,890,657
57,302,224
41,725,709
2,574,565
7,195,687
75,477,019
2,899,082
24,031,656
44,077,826
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
1,163,406,037
896,648,965
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 127
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27. Selling, Marketing and Distribution Expenses
July 2021- June 2022
July 2020- June 2021
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
Clinincal Studies and Research
Pharmacovigilance
Literature and News Letter
Registration & Renewals
Export Insurance, Freight and C&F Expenses
Distribution Commission
Delivery Expense
Depreciation & Amortization
Security Expenses
Bad Debts
Other Expenses
28. Other Income
Interest Income
Dividend
Royalty
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)
Vaccine Distribution Fee
Forfeited PF refund
Technical know how Fee
Profi t/(Loss) on Sale of Fixed Assets
Miscellaneous Income
3,055,058,047
118,272,362
42,930,956
736,860,051
76,900,893
53,377,818
84,600,340
100,790,126
21,294,622
81,286,610
128,432,491
44,275,975
398,744,374
9,078,882
81,466,273
306,616,741
192,982,223
12,646,614
181,219,118
8,875,134
45,368,047
6,946,764
20,146,600
273,594,407
136,542,443
208,693,377
527,996,777
448,553,137
294,761,326
19,313,099
3,451,016
28,483,692
7,749,560,335
3,055,358
2,015,444
112,139,232
262,883,466
50,115,273
619,259,365
210,657
79,552,390
12,617,947
4,868,030
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
1,146,717,162
908,275,284
128 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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29. Finance Cost
Interest on Bank Borrowings
Interest on Lease Liability
Interest on Loan from PF, WPPF & Welfare Fund
Bank and Other Charges
30. Income Tax Expenses
This consists of as follows :
(a) Current Tax
(b) Deferred Tax Expense / (Income)
Deferred Tax Expense is arrived at as follows :
i. Beximco Pharma
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred liability (Gratuity)
Provision for 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 profi t or Loss and Other Comprehensive Income
ii. Nuvista Pharma
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred liability (Gratuity)
Provision for Bad Debts
Temporary Difference
Tax rate
Deferred tax liabilities
Deferred tax on revaluation surplus
Deferred tax liabilities at end of the year
Deferred tax liabilities at beginning of the year
Deferred Tax charged to profi t or Loss and Other Comprehensive Income
iii.Synovia Pharma
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred Liability (Gratuity & Pension)
Provision for Bad Debts & Allowance for Inventory
Carried forward loss
Temporary Difference
Tax rate
Deferred Tax Liability/(Asset) at end of the period
Deferred Tax Liability/(Asset) at beginning of the period
Deferred tax charged to profi t or loss and other comprehensive income
July 2021- June 2022
July 2020- June 2021
Amount in Taka
678,750,473
47,069,776
199,775,709
76,239,565
1,001,835,523
578,560,598
36,342,986
190,970,118
52,811,444
858,685,146
1,191,180,488
497,136,316
1,386,678,310
(174,879,849)
1,688,316,804
1,211,798,461
12,125,676,008
(1,327,433,137)
(10,647,866)
10,787,595,005
22.5%
2,427,208,876
1,871,974,397
555,234,479
1,430,698
556,665,177
445,608,322
(173,210,822)
(2,460,877)
269,936,623
30.0%
80,980,987
28,647,841
109,628,828
117,591,532
(7,962,704)
206,672,792
(123,652,254)
(141,975,425)
(263,373,215)
(322,328,102)
27.5%
(88,640,228)
(37,074,071)
(51,566,157)
497,136,316
9,501,989,318
(1,173,933,757)
(8,169,353)
8,319,886,208
22.5%
1,871,974,397
2,035,744,789
(163,770,392)
3,237,721
(160,532,671)
446,476,889
(148,113,060)
(1,884,860)
296,478,969
30.0%
88,943,691
28,647,841
117,591,532
131,938,710
(14,347,178)
-
-
-
-
-
-
-
-
-
(174,879,849)
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 129
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31. Other Comprehensive Income - Unrealized Gain/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
32. Earnings Per Share (EPS)
July 2021- June 2022
July 2020- June 2021
Amount in Taka
6,764,517
6,764,517
12,840,831
12,840,831
(a) Earnings attributable to the Owners of the Company
(b) Weighted average number of Shares outstanding during the year
5,123,136,712
446,112,089
5,127,693,711
446,112,089
Earnings Per Share (EPS)
11.48
11.49
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
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)
Amount in Taka
June 30, 2022
June 30, 2021
66,148,035,742
52,246,084,026
(21,512,031,284)
(14,881,219,197)
(4,035,506,641)
(334,306,627)
40,600,497,817
37,030,558,202
446,112,089
446,112,089
91.01
83.01
July 2021- June 2022
July 2020- June 2021
Amount in Taka
5,214,176,450
446,112,089
11.69
6,023,263,955
446,112,089
13.50
130 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2021-22
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35. Reconciliation of Net Profi t with Cash Flows from Operating Activities
July 2021- June 2022
July 2020- June 2021
Amount in Taka
Profi t after Tax
4,998,628,197
5,165,749,732
Adjustment to reconcile net profi t to net cash provided by operating activities :
(a) Non-cash/ Non-operating Items :
2,466,830,964
1,132,466,191
Depreciation
Amortization
Gratuity & WPPF
Deferred Tax
Exchange rate fl uctuation (Gain) / Loss on Foreign Currency Bank Loan
Dividend
(Profi t) / Loss on sale of Fixed Assets
Effect of exchange rate changes on Cash and Cash Equivalents
(b) 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 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
36. Related Party Disclosures
1,461,895,126
205,114,934
341,842,995
497,136,316
20,837,952
(2,015,444)
(12,617,947)
(45,362,968)
(2,251,282,711)
(2,508,003,069)
(57,074,532)
352,253,797
(32,996,258)
10,093,080
-
(23,613,650)
131,115,200
(123,057,279)
5,214,176,450
1,016,483,738
97,703,610
191,204,332
(174,879,849)
6,857,486
(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
a. Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Party
Nature of Transactions
Value of Transaction
Balance at year end
I & I Services Ltd.
Delivery of Products
Distribution Commission
31,726,502,984
527,996,777
1,020,929,771
b. Related party transaction between the Company and its subsidiaries have been eliminated in the consolidation.
37. 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 2021-22. The dividend proposal
is subject to shareholders’ approval at the forthcoming Annual General Meeting.
b. Board of Directors of Nuvista Pharma has declared cash dividend @ 40%, i.e. Tk. 4.00 per share for the year 2021-22. The proposed dividend
is subject to approval of the shareholders of NPL in the forthcoming Annual General Meeting.
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Dhaka
October 27, 2022
Annual Report 2021-22 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 131
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Beximco Pharmaceuticals Limited
(Stand-alone)
For the Year ended June 30, 2022
132 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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Independent Auditor’s Report
To the Shareholders of
Beximco Pharmaceuticals Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the fi nancial statements of Beximco Pharmaceuticals Limited (the “Company”), which comprise the Statement of Financial Position
as at 30 June 2022 and Statement of Profi t 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 fi nancial statements, including a summary of signifi cant accounting policies.
In our opinion, the accompanying fi nancial statements of the Company give a true and fair view of the fi nancial position of the Company as at
30 June 2022, and of its fi nancial performance and its cash fl ows 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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together
with the ethical requirements that are relevant to our audit of the fi nancial statements in Bangladesh, and we have fulfi lled our other ethical
responsibilities in accordance with these ethical requirements and the IESBA Code. We believe that the audit evidence we have obtained is suffi cient
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 signifi cance in our audit of the fi nancial statements of the
current period. These matters were addressed in the context of our audit of the fi nancial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Risk
Our response to the risk
Valuation of Property, Plant and Equipment (PPE)
The carrying value of the PPE was Tk. 35,879,081,450 as at 30
June, 2022.
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. Classifi cation 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 signifi cant 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 identifi ed as a key audit matter due to
the signifi cance of this balance to the fi nancial statements and
that there is signifi cant measurement uncertainty involved in this
valuation.
See Note No. 4 to the fi nancial 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 classifi cation 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 reclassifi cation
from capital work in progress to ready for use, with the date of
the act of completion of the work.
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 133
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Risk
Our response to the risk
Valuation of Inventory
The inventory of Tk. 8,802,040,026 as at 30 June, 2022 was held
at different locations across the country.
Inventories are carried at the lower of cost and net realizable
value. As a result, the management apply judgment in determining
the appropriate values for slow-moving or obsolete items.
Since the value of Inventory is signifi cant to the Financial
Statements and there is measurement uncertainty involved in
this valuation, the valuation of inventory was signifi cant to our
audit.
See Note No. 9 to the fi nancial statements
We verifi ed the appropriateness of management’s assumptions
applied in calculating the value of the inventory by:
• Evaluating the design and implementation of key inventory
controls.
• Attending inventory counts on sample basis and reconciling the
count results to the inventory listing to test the completeness of
data.
• Reviewing the requirement of inventory provisioning and action
there upon by the management.
• Comparing the net realizable value obtained through a detailed
review of sales subsequent to the year-end, to the cost price of a
sample of inventories.
Contingent Liability
The Company is subject to a number of claims and litigations. The
amounts of claims are signifi cant 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
diffi culty in assessing the outcome. The assessment of whether
or not a liability should be recognized involves judgement from
management.
The Company also provided corporate guarantees to fi nancial
institutions in connection with working capital credit facilities
predominantly for its subsidiaries.
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 confi rmations in this regard from external counsel.
We also validated the completeness and appropriateness of the
related disclosures in Note No. 49 of the fi nancial 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
fi nancial statements.
We focused on identifi cation 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 identifi cation and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and tested
material accounts balances.
•Evaluated the disclosures
compliance with IAS 24.
in the fi nancial statements
in
134 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the
fi nancial 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 fi nancial 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 fi nancial statements, our responsibility is to read the other information identifi ed above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with the fi nancial 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 fi nancial 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 fi nancial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the fi nancial 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 fi nancial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the fi nancial 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 infl uence the economic decisions
of users taken on the basis of these fi nancial 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 fi nancial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is suffi cient 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 signifi cant 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 fi nancial 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 fi nancial statements, including the disclosures, and whether the fi nancial
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 signifi cant
audit fi ndings, including any signifi cant defi ciencies in internal control that we identify during our audit.
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 135
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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 signifi cance in the audit of
the fi nancial 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 benefi ts
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 notifi cations 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 verifi cation 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 Profi t or Loss and Other Comprehensive Income (Profi t
& 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 27, 2022
M. J. ABEDIN & CO.
Chartered Accountants
Reg No. N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS295927
136 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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Amount in Taka
June 30, 2021
37,713,988,877
34,501,205,124
319,884,849
701,794,902
2,145,185,900
29,325,720
16,592,382
Notes
June 30, 2022
44,161,617,726
35,879,081,450
565,076,673
752,955,380
6,911,821,604
29,325,720
23,356,899
Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2022
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
4
4 (d)
5
6
7
8
9
10
11
12
13
14
15
4(c)
16
17
18
19
20
21
22
23
24
15,533,009,363
13,150,677,229
8,802,040,026
664,709,483
2,739,772,443
2,510,263,322
816,224,089
6,693,894,021
622,433,282
2,831,869,241
2,354,576,102
647,904,583
59,694,627,089
50,864,666,106
40,315,738,301
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,116,896,688
20,531,723
27,463,126,402
8,311,592,939
3,401,537,415
2,482,846,648
2,427,208,876
11,067,295,849
6,363,686,217
2,039,694,209
1,908,464,970
576,413,875
87,370,715
91,665,863
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
5,265,836,197
1,206,717,094
2,187,144,706
1,871,974,397
8,891,238,154
4,857,106,281
1,401,406,013
1,814,013,039
480,501,854
117,769,532
220,441,435
59,694,627,089
50,864,666,106
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS295927
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 137
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Beximco Pharmaceuticals Limited
Statement of Profi t or Loss and Other Comprehensive Income
For the Year ended June 30, 2022
Net Sales Revenue
Cost of Goods Sold
Gross Profi t
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profi t from Operations
Other Income
Finance Cost
Profi t Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profi t Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profi t after Tax
Other Comprehensive Income/(Loss)
Total Comprehensive Income
Earnings Per Share (EPS)
Notes
July 2021 - June 2022
July 2020 - June 2021
Amount in Taka
25
26
29
30
31
32
33
30,220,731,648
26,949,351,606
(16,507,965,726)
(14,347,382,048)
13,712,765,922
12,601,969,558
(7,118,937,516)
(6,532,965,326)
(881,516,329)
(792,228,907)
(6,237,421,187)
(5,740,736,419)
6,593,828,406
6,069,004,232
1,456,174,446
(976,632,093)
7,073,370,759
1,108,048,355
(841,875,806)
6,335,176,781
(336,827,179)
(301,675,085)
6,736,543,580
6,033,501,696
34
(1,575,199,937)
(1,090,012,960)
(1,018,534,760)
(1,250,545,631)
(556,665,177)
5,161,343,643
6,764,517
160,532,671
4,943,488,736
12,840,831
5,168,108,160
4,956,329,567
11.57
11.08
35
36
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS295927
138 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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Beximco Pharmaceuticals Limited
Statement of Changes in Equity
For the Year ended June 30, 2022
Share
Capital
Share
Premium
Excess of Issue Price
over Face Value of
GDRs
Capital
Reserve on
Merger
Revaluation
Surplus
Unrealized
Gain/
(Loss)
Retained
Earnings
Total
Amount in Taka
Balance as on July 01, 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
Total Comprehensive Income :
Profi t 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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,358,656)
1,430,698
-
5,161,343,643
5,161,343,643
6,764,517
-
6,764,517
-
-
-
(1,561,392,312)
(1,561,392,312)
6,358,656
-
-
1,430,698
Balance as on June 30, 2022
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950 1,116,896,688 20,531,723 27,463,126,402 40,315,738,301
Net Asset Value (NAV) Per Share (Note-37)
90.37
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
Total Comprehensive Income:
Profi t for the Year
Other Comprehensive Income/(Loss)
Transactions with the Sharehold
Cash Dividend
Stock Dividend
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)
(7,180,526)
3,237,721
-
-
(405,556,440)
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
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS295927
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 139
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Beximco Pharmaceuticals Limited
Statement of Cash Flows
For the Year ended June 30, 2022
Cash Flows from Operating Activities :
Receipts from Customers and Others
Payments to Suppliers and Employees
Cash Generated from Operations
Interest Paid
Interest Received
Income Tax Paid
Net Cash Generated from Operating Activities
39
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment
Intangible Assets
Investment in Subsidiary
Disposal of Property, Plant and Equipment
Dividend Received
Net Cash Used in Investing Activities
Cash Flows from Financing Activities :
Notes
July 2021 - June 2022
July 2020 - June 2021
Amount in Taka
31,670,123,381
(24,518,915,859)
7,151,207,522
(976,632,093)
699,570
(1,147,310,332)
5,027,964,667
(2,828,073,814)
(7,875,918)
(4,766,635,704)
13,163,510
71,517,955
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
(7,517,903,971)
(2,418,019,099)
Net Increase /(Decrease) in Long Term Borrowings
Net Increase/(Decrease) in Short Term Borrowings
Dividend Paid
Net Cash (Used in) / from Financing Activities
Increase/(Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Cash and Cash Equivalents at End of Year
Net Operating Cash Flow Per Share
39
13
38
2,698,107,035
1,506,579,936
(1,591,791,129)
2,612,895,842
122,956,538
647,904,583
45,362,968
816,224,089
(462,155,826)
(2,130,424,341)
(572,357,927)
(3,164,938,094)
31,959,742
615,944,841
-
647,904,583
11.27
12.59
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 27, 2022 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Per our report of even date
Dhaka
October 27, 2022
M.J. Abedin & Co.
Chartered Accountants
Reg No :N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS295927
140 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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Beximco Pharmaceuticals Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2022
1. Reporting Entity
1.1. About the Company
Beximco Pharmaceuticals Limited (Beximco Pharma/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 fl uids 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
(Nuvista Pharma/NPL) – a non-listed pharmaceutical company in Bangladesh specializing in hormones and steroid drugs. In October 2021,
BPL acquired majority stake (54.6%) in Sanofi Bangladesh Limited from Sanofi Group represented through May & Baker Limited and Fisons
Limited. The company was subsequently renamed as Synovia Pharma PLC (Synovia Pharma/SPP). Bangladesh Government holds 45.4% shares
of the company represented through Bangladesh Chemical Industries Corporation (20%) and Ministry of Industries (25.4%). SPP is a non-listed
pharmaceutical company based in Bangladesh. Shares of Beximco Pharma are traded in Dhaka and Chittagong Stock Exchanges of Bangladesh
and its GDRs are traded in AIM of the London Stock Exchange.
The registered offi ce 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 certifi ed 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 and 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 fi nancial 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 Reporting Framework and Compliance thereof
The Financial Reporting Act, 2015 (FRA) was enacted in 2015. The Financial Reporting Council (FRC) under the FRA has been formed in 2017
and has since then adopted International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) as the applicable
Financial Reporting Standards with effect from 2 November 2020.
Accordingly, the fi nancial statements have been prepared in accordance with IFRSs (including IASs) and the Companies Act, 1994. The title
and format of these fi nancial statements follow the requirements of IFRSs which are to some extent different from the requirement of the
Companies Act, 1994. However, such differences are not material and in the view of management, IFRS format gives a better presentation to the
shareholders.
The Company also complied with the requirements of following laws and regulations from various Government bodies:
Bangladesh Securities and Exchange Rules, 2020;
The Income Tax Ordinance, 1984 with subsequent amendments;
The Income Tax Rules, 1984 with subsequent amendments;
The Value Added Tax and Supplementary Duty Act, 2012 with subsequent amendments;
The Value Added Tax and Supplementary Duty Rules, 2016 with subsequent amendments;
The Labour Law, 2006 with subsequent amendments in 2013; and
Others as applicable.
2.3 Basis of Measurement
The fi nancial 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 fl ow statement prepared on cash basis.
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 141
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2.4 Presentation of Financial Statements
The presentation of the fi nancial statements is in accordance with the guidelines provided by IAS 1: Presentation of Financial Statements.
The fi nancial statements comprises of:
(a) Statement of Financial Position as at the end of the year June 30, 2022;
(b) Statement of Profi t or Loss and Other Comprehensive Income for the year ended June 30, 2022;
(c) Statement of Changes in Equity for the year ended June 30, 2022;
(d) Statement of Cash Flows for the year ended June 30, 2022; and
(e) Notes, comprising summary of signifi cant accounting policies and explanatory information.
2.5. Reporting Period and Comparative Information
The Financial statements cover 12 months’ period starting from July 1, 2021 to June 30, 2022. The last audited fi nancial statements were
prepared for the year ending June 30, 2021. Figures for earlier year have been re-arranged wherever considered necessary to ensure better
comparability with the current year.
2.6. Authorization for issue
The fi nancial statements have been authorized for issue by the Board of Directors October 27, 2022.
2.7. Functional and Presentation Currency
The fi nancial statements are prepared and presented in Bangladesh Currency (Taka), which is the Company’s functional currency. All fi nancial
information presented has been rounded off to the nearest Taka except where indicated otherwise.
2.8. Use of Estimates and Judgements
The preparation of fi nancial statements in conformity with the IFRSs including IASs require management to make judgements, 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 fi nancial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision of
accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
In particular, the key areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most signifi cant effect
on the amounts recognized in the fi nancial statements include depreciation, inventory valuation, accrued expenses, others payable, capitalization
of assets and deferred liability for gratuity.
3. Signifi cant Accounting Policies
The accounting principles and policies in respect of material items of fi nancial statements set out below have been applied consistently to all
periods presented in these fi nancial 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 fulfi lls the
performance obligations in contract with the customers. It usually occurs when customers take possession of the products or goods are delivered
at destination specifi ed 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 2% - 10%
4% - 15%
Plant and Machinery
7.5% - 10%
Furniture & Fixtures
20%
Transport & Vehicle
10% - 15%
Offi ce Equipment
142 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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3.2.4. Retirements and Disposals
On disposal of fi xed assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposal is refl ected 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 fi nance expense.
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 profi t 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 fi xed assets where the software supports a signifi cant business system and the
expenditure leads to the creation of a durable asset. Also, the research and development expenditures that are defi nite to yield benefi t to the
Company are capitalized.
3.5. Financial Instruments
A fi nancial instrument is any contract that gives rise to a fi nancial asset of one entity and a fi nancial liability or equity instrument of another entity.
Financial Instruments comprise Financial Assets and Financial Liabilities which are recognized, classifi ed, 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 fi nancial 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 fi nancial asset when,
and only when the contractual rights or probabilities of receiving the cash fl ows from the asset expire or it transfer the rights to receive the
contractual cash fl ows on the fi nancial asset in a transaction in which substantially all the risk and rewards of ownership of the fi nancial
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, fi rstly against any provision available and then to the profi t and
loss account. Subsequent recoveries of amounts previously provided for are credited to the profi t 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 insignifi cant 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 fi nancial liability when its contractual obligations are discharged or cancelled
or expire. Finance liabilities include payable for expenses, liability for capital expenditure and other current liabilities.
3.6. Impairment
3.6.1. Financial Assets
Accounts receivable and other receivables are assessed at each reporting date to determine whether there is any objective evidence of
impairment. Financial assets are impaired if objective evidence indicates that a loss event has occurred after the initial recognition of
the asset and that the loss event had a negative effects on the estimated future cash fl ows of that asset, that can be estimated reliably.
Objective evidence that fi nancial assets are impaired can include default or delinquency by a debtor, indications that a debtor or issuer
will enter bankruptcy etc.
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 143
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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 profi t 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 fi nancial position when the Company has a legal or constructive obligation as a result of a past
event. It is probable that an outfl ow of economic benefi ts 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 fi nancial position. Where the effect of time value of money is material, the amount of provision is measured at the present
value of the expenditures expected to be required to settle the obligation.
3.9. Income Tax Expense
Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the Statement of Profi t 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 qualifi es as a “Publicly Traded Company” and as such the applicable Tax Rate is 22.5%. However, applicable Tax Rate for
profi t generated from export is 12%. 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 profi t or loss.
A deferred tax asset is recognized to the extent that it is probable that future taxable profi t 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 benefi t 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 Incentives on Export
Cash Incentives on Export is recognized when all conditions as laid down in the relevant incentive scheme including receipt of export
remittances are satisfi ed and the right to claim the incentive is established.
Royalty
Royalty income is accounted for on accrual basis on fulfi llment of the terms laid down in the agreement between the contracting parties.
Vaccine Distribution Fee
Vaccine Distribution fee is recognized on delivery of Vaccine to the designated government warehouses across the country, fulfi lling 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 qualifi es for capitalization under IAS
23: Borrowing Costs.
144 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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3.12. Employee Benefi ts
The Company maintains both defi ned contribution plan and defi ned benefi t 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 benefi ts in compliance with the provisions of IAS 19: Employee Benefi ts. The cost
of employee benefi ts is charged off as revenue expenditure in the period to which the contributions relate. The Company’s employee benefi ts
include the following:
3.12.1. Defi ned Contribution Plan (Provident Fund)
The Company has a recognized provident fund scheme (Defi ned 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 defi ned contribution plan as an expense when an employee has rendered services in exchange
for such contribution. The legal and constructive obligation is limited to the amount it agrees to contribute to the fund.
3.12.2. Defi ned Benefi t Plan (Gratuity)
The Company has gratuity scheme duly approved by the National Board of Revenue. Though no valuation was done to quantify actuarial
liabilities as per the IAS 19: Employee Benefi ts, such valuation is not likely to yield a result signifi cantly different from the current provision.
3.12.3. Contribution to Workers’ Profi t Participation and Welfare Funds (WPPF)
This represents 5% of net profi t before tax contributed by the Company as per provisions of the Bangladesh Labor (amendment) Act 2013
and is payable to workers as defi ned in the said law.
3.12.4. Short-term Employee Benefi ts
Short-term Employee Benefi ts include salaries, bonuses, leave encashment, etc. Obligations for such benefi ts 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 fi nancial 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 refl ected in the fi nancial statements. Events after reporting period
that are not adjusting events are disclosed in the notes when material.
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4 . Property, Plant and Equipment
As on June 30, 2022
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Offi ce
Equipment
Total
Property Plant &
Equipment
Right-of-use
Assets
Total
Amont in Taka
Cost
As on July 01, 2021
Additions
Transferred from Right-of-use Asset
Transferred in & Capitalized
Disposal during the Year
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
-
-
-
-
146,850,857
400,709,986
87,932,769
-
41,517,297
677,010,909
336,416,764
1,013,427,673
-
-
-
130,522,554
-
130,522,554
(130,522,554)
-
7,221,661,130
10,160,501,871
95,401,914
-
93,739,367
17,571,304,282
-
(47,847,910)
(642,221)
(19,244,469)
-
(67,734,600)
-
-
17,571,304,282
(67,734,600)
Cost as on June 30, 2022
3,343,741,442
15,170,175,656
26,056,751,981
483,024,431
776,181,432
758,555,571
46,588,430,513
726,291,620
47,314,722,133
Accumulated Depreciation
As on July 01, 2021
Depreciation Charged
Transferred from Right-of-use Asset
Adjustment for Assets disposed off
Accumulated Depreciation as on June 30, 2022
-
-
-
-
-
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
259,835,485
849,632,109
18,331,605
28,180,786
36,570,893
1,192,550,878
65,245,456
1,257,796,334
-
-
-
-
104,543,070
(40,278,852)
(606,333)
(15,822,875)
-
-
104,543,070
(104,543,070)
-
(56,708,060)
-
(56,708,060)
2,558,680,562
7,669,003,574
165,834,945
637,478,804
459,779,614
11,490,777,499
161,214,947
11,651,992,446
Net Book Value June 30, 2022
3,343,741,442
12,611,495,094
18,387,748,407
317,189,486
138,702,628
298,775,957
35,097,653,014
565,076,673
35,662,729,687
Capital Work in Progress 4 (a)
Carrying Value as on June 30, 2022
As on June 30, 2021
781,428,436
-
781,428,436
35,879,081,450
565,076,673
36,444,158,123
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Offi ce
Equipment
Total
Property Plant &
Equipment
Right-of-use
Assets
Total
Cost
As on July 01, 2020
Additions
Transferred in & Capitalized
Disposal during the Year
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
-
-
-
3,694,494
119,455,263
18,597,471
298,207,642
965,316,704
1,558,986
-
-
2,848,259
1,267,931,591
34,888,865
176,636,093
130,204,714
306,840,807
-
(36,523,171)
(896,228)
(21,101,899)
(253,700)
(58,774,998)
-
-
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
6,272,267,313
133,699,879
498,744,471
394,798,590
9,416,167,354
153,092,527
9,569,259,881
182,187,976
602,682,764
14,673,982
36,081,381
28,519,516
864,145,619
47,420,034
911,565,653
-
(15,299,760)
(264,188)
(14,248,029)
(109,385)
(29,921,362)
-
(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)
Carrying Value as on June 30, 2021
16,474,269,367
-
16,474,269,367
34,501,205,124
319,884,849
34,821,089,973
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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
Offi ce Equipment
Intangible Assets
Closing Balance
4 (b). Capital Work in Progress
June 30, 2022
16,474,269,367
1,992,193,263
18,466,462,630
17,685,034,194
7,221,661,130
10,160,501,871
95,401,914
93,739,367
113,729,912
Amount in Taka
June 30, 2021
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
781,428,436
16,474,269,367
The unit 3 manufacturing facility has been completed and now in ready-to-use status. The commercial operation has partially commenced during
the reporting period. The plant will be fully commercially operational once the product/technology transfer, which is being done in phases, are
complete. The Capital Work in Progress has been transferred to respective assets under Property, Plant and Equipment catagory and related
deprecation has been charged accordingly.
4 (c). Revaluation Surplus
Opening Balance
Adjustment for depreciation on revalued assets
Adjustment for Deferred Tax on revalued assets
4 (d). Right-of-use Assets
At Cost
Accumulated Depreciation
1,121,824,646
1,125,767,451
(6,358,656)
1,430,698
(7,180,526)
3,237,721
1,116,896,688
1,121,824,646
726,291,620
(161,214,947)
565,076,673
520,397,410
(200,512,561)
319,884,849
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 147
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5. Intangible Assets
Particulars
Marketing Rights &
Product Development
ERP and
Software
Amount in Taka
Total
Cost
As on July 01, 2021
Addition / Transferred in & Capitalized
As on June 30, 2022
Amortization
As on July 01, 2021
Amortized During the year
As on June 30, 2022
813,157,713
192,609,453
1,005,767,166
113,729,912
7,875,918
121,605,830
926,887,625
200,485,371
1,127,372,996
270,551,532
33,420,732
303,972,264
50,421,480
20,023,872
70,445,352
320,973,012
53,444,604
374,417,616
Carrying Value as on June 30, 2022
605,914,613
147,040,767
752,955,380
Carrying Value as on June 30, 2021
542,606,181
159,188,721
701,794,902
6. Investment in Subsidiaries
June 30, 2022
June 30, 2021
Nuvista Pharma Ltd.
Beximco Pharma API Ltd.
Synovia Pharma PLC
2,125,186,000
2,125,186,000
19,999,900
19,999,900
4,766,635,704
-
6,911,821,604
2,145,185,900
a. The Company holds 10,013,474 shares representing 85.22% of the Paid Up Capital of Nuvista Pharma Ltd (NPL) while Beximco Pharma API
Limited is a fully owned subsidiary.
b. During the current fi nancial year the Company acquired 1,963,241 shares representing 54.607% of the Paid Up Capital of Sanofi Bangladesh
Limited subsequently renamed as Synovia Pharma PLC (SPP) .
c. Investment in subsidiary is accounted for using cost method as per IAS 27: Separate Financial Statements, in preparing fi nancial 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. (BPL) 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 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
Bangladesh Export Import Co. Ltd.
Central Depository Bangladesh Ltd. (CDBL)
Amount in Taka
June 30,2022
June 30,2021
Number of Shares
Value
Number of Shares
Value
167,854
571,182
21,787,449
1,569,450
23,356,899
167,854
15,022,932
571,182
1,569,450
16,592,382
a. The shares of Bangladesh Export Import Co. Ltd. are listed with Dhaka and Chittagong Stock Exchanges. The market value of each share of
Bangladesh Export Import Co. Ltd. as on June 30, 2022 was Tk. 129.80 (June 30, 2021: Tk.89.50). The fair value gain of Tk. 6,764,517 has been
accounted for as Other Comprehensive Income following IFRS 9:Financial Instruments.
b. 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.
148 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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
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June 30, 2022
1,754,268,113
610,859,802
4,226,671,044
1,089,128,002
73,772,507
82,051,648
37,709,095
927,579,815
8,802,040,026
Amount in Taka
June 30, 2021
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
543,228,366
20,974,250
100,506,867
664,709,483
545,385,920
16,841,919
60,205,443
622,433,282
2,475,650,151
264,122,292
2,657,960,805
173,908,436
2,739,772,443
2,831,869,241
Accounts Receivable is reported net of provision for bad debts of Tk. 10,647,866. It includes an amount of Tk. 1,016,268,270, euivalent USD
11,821,851 (June 30, 2021: Tk. 840,777,271, equivalent USD 9,985,468) 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. 1,020,929,770 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.1,270,079,144 on March 31, 2022. Additionally Tk
26,540,378, Tk 36,929,751 and Tk 729,830 is receivable from its subsidiary companies Nuvista Pharma Ltd., Synovia Pharma PLC and Beximco
Pharma API Ltd., respectively.
No amount was due from the directors, managing agent, managers and other offi cers of the company and any of them severally or jointly with
any other person.
Aging of Trade Receivable:
Amount due within 6 months
Amount due for 6 months & above
2,354,175,678
121,474,473
Amount in Taka
2,593,603,554
64,357,251
2,475,650,151
2,657,960,805
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 149
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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
Advance for Expenses including Capital Expenditure
Bank Guarantee Margin
Advance against Salary
Rent Advance
Vehicle Advance
Raw & Packing Material
Prepaid Insurance
Overseas Liaison Offi ce
Others
June 30, 2022
259,313,897
563,667,556
37,673,863
105,873,150
2,133,040
611,453,338
18,826,990
91,220,656
38,745,324
154,557,458
439,514,602
36,757,137
67,005,418
83,520,893
Amount in Taka
June 30, 2021
249,538,566
463,448,047
25,777,861
164,445,896
2,650,135
422,347,443
20,831,185
173,756,608
34,886,833
148,885,137
460,856,879
30,641,155
58,207,996
98,302,361
2,510,263,322
2,354,576,102
a. The maximum amount due from the employees during the year was Tk. 179,077,115 on November 2021
b. No amount was due from the directors, managing agent, managers and other offi cers 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 :
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
279,392,725
164,391,788
536,831,364
-
816,224,089
443,374,564
40,138,231
647,904,583
10,000,000,000
10,000,000,000
5,000,000,000
5,000,000,000
15,000,000,000
15,000,000,000
517,757,500
517,757,500
3,570,939,420
3,570,939,420
59,512,500
312,911,470
59,512,500
312,911,470
4,461,120,890
4,461,120,890
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.
150 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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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, 2022
June 30, 2021
Number of
Shares
% of Share
Capital
Number of
Shares
% of Share
Capital
9,058,888
9,080,095
116,305,973
134,444,956
43,246,139
84,386,054
97,533,003
86,501,937
311,667,133
446,112,089
2.03
2.04
26.07
30.14
9.69
18.92
21.86
19.39
69.86
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
2.03
2.04
26.11
30.18
11.64
18.92
19.68
19.58
69.82
100.00
446,112,089
100.00
Range of Shareholdings
In number of shares
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Number of
Shareholders
% of
Holding
Number of
Shareholders
% of
Holding
Number of
Shares
% of
Holding
Number of
Shares
% of
Holding
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
41,440
76.11%
10,587
19.45%
1,042
560
209
113
70
166
221
38
54,446
1.91%
1.03%
0.38%
0.21%
0.13%
0.30%
0.41%
0.07%
100%
38,764
14,059
1,098
567
185
84
76
150
227
38
70.16%
4,189,826
25.45%
16,225,509
7,545,996
8,156,027
5,180,289
3,949,472
3,225,851
12,079,301
1.99%
1.03%
0.33%
0.15%
0.14%
0.27%
0.41%
0.94%
3.64%
1.69%
1.89%
1.16%
0.88%
0.72%
2.71%
5,274,349
19,890,718
7,895,652
8,078,197
4,575,664
2,947,573
3,495,456
11,069,746
1.18%
4.46%
1.77%
1.81%
1.03%
0.66%
0.81%
2.48%
66,057,769
14.80%
66,828,442
14.98%
0.07% 319,502,049
71.57% 316,056,292
70.83%
55,248
100% 446,112,089
100% 446,112,089
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 fi scal year were:
Dhaka Stock Exchange
Chittagong Stock Exchange
AIM
Tk.
Tk.
GBP
June 30, 2022
June 30, 2021
154.60
155.30
0.705
177.30
176.60
0.860
f. Option on unissued Ordinary Shares :
There is no option on unissued shares as on June 30, 2022.
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.
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 151
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16. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Term Loan-Agrani Bank
Lease Liability
Amount in Taka
June 30, 2022
June 30, 2021
670,863,306
2,313,748,864
416,925,245
3,401,537,415
972,696,465
-
234,020,629
1,206,717,094
a. Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
This represents part of the foreign currency loan of US$ 51.559 million and Euro 19.05 million taken for the expansion and diversifi cation
project 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 fi rst charge by way of hypothecation against machinery and
equipment procured under the pertinent loans.
b. Term Loan-Agrani Bank
The Company availed a Term Loan of Taka 3,750 million from Agrani Bank Limited, Principal Branch Dhaka to partly fi nance the acquisition
of Synovia Pharma PLC (formerly Sanofi Bangladesh Limited).
c. Lease Liability
This consists of as follows:
Within one year
More than one year
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
Addition
Interest Received during the year
Paid to Employees during the year
June 30, 2022
Amount in Taka
June 30, 2021
140,769,847
416,925,245
557,695,092
113,976,268
234,020,629
347,996,897
1,213,933,757
215,143,980
1,429,077,737
(44,326,225)
1,384,751,512
40,000,000
60,000,000
1,644,600
101,644,600
(44,326,225 )
57,318,375
1,056,920,260
221,588,892
1,278,509,152
(64,575,395)
1,213,933,757
-
40,000,000
-
40,000,000
-
40,000,000
Closing Balance
1,327,433,137
1,173,933,757
b. Workers Profi t Participation and Welfare Fund
1,155,413,511
2,482,846,648
1,013,210,949
2,187,144,706
152 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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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
Amount in Taka
June 30, 2022
June 30, 2021
1,871,974,397
2,035,744,789
556,665,177
(1,430,698)
(160,532,671)
(3,237,721)
2,427,208,876
1,871,974,397
4,817,103,014
409,733,361
492,341,234
644,508,608
3,077,454,947
1,014,765,029
510,141,234
254,745,071
6,363,686,217
4,857,106,281
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 of Tk 50 Crore.
c. The loan from Janata Bank and AB Bank is secured by hypothecation of fi xed and fl oating assets of the Company excepting the machinery
and equipment fi nanced 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 raw and
packing materials. The facility is secured by second charge by way of hypothecation on present and future fi xed and fl oating assets of the
Company excepting the machinery and equipment fi nanced by ODDO BHF Aktiengesellshaft, Frankfurt, Germany.
20. Long Term Borrowings-Current Maturity
Project Loan - ODDO BHF Aktiengesellschaft, Frankfurt, Germany
Term Loan-Agrani Bank
Lease Liability
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’ Profi t Participation and Welfare Funds - (current year)
23. Dividend Payable / Unclaimed Dividend
June 30, 2022
June 30, 2021
938,924,362
960,000,000
140,769,847
2,039,694,209
1,287,429,745
-
113,976,268
1,401,406,013
807,139,594
886,263,961
110,410,808
104,650,607
622,523,948
797,569,927
298,396,187
95,522,977
1,908,464,970
1,814,013,039
239,586,696
336,827,179
576,413,875
178,826,769
301,675,085
480,501,854
The Dividend Payable/Unclaimed dividend as on June 30, 2022 includes Tk. 45,080,943 relating to year 2020-21 which has been paid but
not yet claimed. The remaining balance relates to dividend for prior years unclaimed to date.
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 153
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24. Income Tax Payable
Opening Balance
Provision for current year
Short provision for prior years
Income Tax Paid
25. Net Sales Revenue
Domestic Sales
Export Sales
June 30, 2022
220,441,435
914,346,139
104,188,621
1,238,976,195
(1,147,310,332)
91,665,863
Amount in Taka
June 30, 2021
263,148,692
1,250,545,631
-
1,513,694,323
(1,293,252,888)
220,441,435
July 2021 - June 2022
July 2020 - June 2021
27,553,566,457
2,667,165,191
30,220,731,648
23,825,350,346
3,124,001,260
26,949,351,606
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
Unit
July 2021 - June 2022
July 2020 - June 2021
Quantity
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
Million pcs.
Million pcs.
Kg
Liter
7,988.60
152.80
121,022
258,829
7,316.90
119.19
181,903
352,970
b. The value of Export Sales in equivalent US Dollar is 31,274,602 in 2021-22 as against US Dollar 37,106,411 in 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)
Finished Goods Stock comprises 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
Total Value
Unit
Million
pcs.
Million
pcs.
Kg
Taka
154 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
July 2021 - June 2022
July 2020 - June 2021
282,756,046
13,638,376,755
4,060,497,699
17,981,630,500
(610,859,802)
17,370,770,698
1,188,526,554
18,559,297,252
(297,063,413)
(1,754,268,113)
16,507,965,726
249,838,762
11,428,162,801
3,446,781,489
15,124,783,052
(282,756,046)
14,842,027,006
972,564,349
15,814,591,355
(278,682,753)
(1,188,526,554)
14,347,382,048
Quantity
June 30, 2022
June 30, 2021
699.14
504.72
13.61
4,162
9.77
5,890
1,754,268,113
1,188,526,554
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27. Materials Consumed
This is made-up as follows :
July 2021 - June 2022
July 2020 - June 2021
Amount in Taka
Opening Stock
Purchase
Closing Stock
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 Certifi cation and Regulatory Approvals
Depreciation
Security Expenses
Other Expenses
4,173,915,422
14,854,032,886
(5,389,571,553)
13,638,376,755
3,915,389,246
11,686,688,977
(4,173,915,422)
11,428,162,801
1,484,594,001
432,152,866
40,024,639
5,687,728
6,264,023
39,995,731
3,314,819
303,847,832
7,835,447
30,189,536
11,175,180
249,432,471
248,709,658
11,097,180
8,645,632
1,138,305,681
27,415,344
11,809,931
4,060,497,699
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
a. Salary and Allowances include Company’s Contribution to provident fund amounting to Tk. 26,512,220
b. Repairs and Maintenance includes maintenance of offi ce, 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
471,393,956
26,468,207
71,324,489
5,265,798
27,053,843
8,227,022
4,404,963
2,100,000
6,309,245
22,413,302
25,736,959
57,302,224
41,725,709
1,951,304
4,598,977
44,022,872
2,203,200
18,858,186
40,156,073
881,516,329
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
a. Salary and Allowances include Company’s Contribution to provident fund amounting to Tk.9,472,426
b. Repairs and maintenance includes maintenance of offi ce, 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 of Tk. 5,045,526 ( in 2021 Tk. 1,015,336 )
e. Other expenses does not include any item exceeding 1% of total revenue.
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30. Selling, Marketing and Distribution Expenses
Salary & Allowances
Rent
Repairs and Maintenance
Travelling & Conveyance
Entertainment
Printing & Stationery
Telephone, Cellphone, Internet & Postage
Software & Licenses
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
July 2021 - June 2022
July 2020 - June 2021
Amount in Taka
2,278,252,477
2,111,616,016
113,663,438
33,389,342
597,509,675
71,270,659
41,365,401
61,501,956
27,436,672
20,261,165
66,845,465
112,510,501
31,351,563
376,783,020
835,673
45,784,860
261,461,875
141,621,329
12,646,614
153,209,813
5,639,310
25,219,903
6,946,764
20,146,600
234,061,330
135,590,529
208,027,169
527,996,777
448,553,137
145,913,133
19,313,099
2,875,000
9,436,938
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
a. Salary and Allowances include Company’s Contribution to provident fund amounting to Tk. 47,730,687
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 offi ce, 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.
6,237,421,187
5,740,736,419
156 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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31. Other Income
Interest Income
Dividend
Royalty
Distribution Commission Income
Cash Incentive on Export
Exchange Rate Fluctuation Gain / (Loss)
Vaccine Distribution Fee
Forfeited PF refund
Technical know how fee
Profi t/(Loss) on Sale of Fixed Assets (Note 41)
July 2021 -June 2022
July 2020 -June 2021
Amount in Taka
699,570
71,517,955
149,208,374
222,559,867
261,154,366
49,926,288
619,259,365
159,301
79,552,390
2,136,970
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
1,456,174,446
1,108,048,355
a. Vaccine Distribution Fee is received against the delivery of Oxford University/AstraZeneca SARS-CoV-2 vaccine, AZD1222 as per the tripartite
agreement with the Government of Bangladesh (GOB) and the Serum Institute of India Pvt. Ltd (“SII”). Income from Vaccine Distribution Fee is
reported net of related expenses.
b. The Distribution Commission is received from the subsidiary companies Nuvista Pharma Limited and Synovia Pharma PLC for the delivery of
products using BPL’s distribution network across the country as per the agreement entered into with the companies on an arm’s length basis.
c. Government provides 10% incentives on net FOB value of export of fi nished pharmaceutical formulation products subject to fulfi llment 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 fl uctuation losses has been netted off with the exchange rate fl uctuation gains. An exchange loss of Tk. 20,837,952 has arisen
from the translation of outstanding foreign currency loan from ODDO BHF Aktiengesellshaft, Frankfurt, Germany translated at the exchange
rate prevailing on the fi nancial position date.
32. Finance Cost
Interest on Bank Borrowings
Interest on Lease Finance
Interest on Loan from PF, WPPF & Welfare Fund
Bank and Other Charges
33. Contribution to WPPF & Welfare Funds
July 2021 -June 2022
July 2020 -June 2021
Amount in Taka
662,823,473
42,741,408
199,775,709
71,291,503
976,632,093
562,867,528
35,970,714
190,970,118
52,067,446
841,875,806
This represents statutory contribution by the Company as per Bangladesh Labour Act 2013. The amount is computed @ 5% of net profi t before
tax (after charging such contribution).
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 157
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34. Income Tax Expenses
This consists of as follows :
a. Current Tax
Tax provision for current Year
Income tax short provision
b. Deferred Tax Expense / (Income)
Total
Deferred Tax Expense / (Income) is arrived at as follows :
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred liability (Gratuity)
Provision for 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 profi t or Loss and Other Comprehensive Income
July 2021 -June 2022
July 2020 - June 2021
Amount in Taka
914,346,139
104,188,621
1,250,545,631
-
1,018,534,760
1,250,545,631
556,665,177
(160,532,671)
1,575,199,937
1,090,012,960
12,125,676,008
9,501,989,318
(1,327,433,137)
(1,173,933,757)
(10,647,866)
(8,169,353)
10,787,595,005
8,319,886,208
22.5%
2,427,208,876
1,871,974,397
555,234,479
1,430,698
556,665,177
22.5%
1,871,974,397
2,035,744,789
(163,770,392)
3,237,721
(160,532,671)
Reconciliation of Effective tax rate
Profi t before Tax
Applicable Tax
Effect of lower rate on Export Profi t excluding Cash Incentive
Effect of lower rate on cash incentive
Effect of lower rate on dividend income
Effect of permanent disallowances
Short provision of prior year
Deferred tax impact
Income Tax Expense
a. Export Profi ts are subject to 12% Tax rate
2021-22
2020-21
%
Tk.
%
Tk.
6,736,543,580
22.50%
1,515,722,306
-0.97%
-0.48%
-0.03%
0.79%
1.55%
0.03%
(65,093,147)
(32,644,296)
(1,787,949)
52,924,459
104,188,621
1,889,943
23.38%
1,575,199,937
22.50%
-1.56%
-0.64%
-0.01%
0.86%
0.00%
-3.07%
18.07%
6,033,501,696
1,357,537,882
(94,206,509)
(38,718,129)
(899,696)
51,624,342
-
(185,324,930)
1,090,012,960
b. 10% Tax deductible at source on the cash incentives are treated as fi nal tax liability on such income as per the Income Tax regulations.
c. Dividend Income is taxable @ 20%
35. Other Comprehensive Income - Unrealized Gain/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
Amount in Taka
July 2021 -June 2022
July 2020 -June 2021
6,764,517
6,764,517
12,840,831
12,840,831
158 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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36. Earnings Per Share (EPS)
July 2021 -June 2022
July 2020 -June 2021
Amount in Taka
a. Earnings attributable to the ordinary shareholders
b. Weighted average number of shares outstanding during the year (Note 3.15)
Earnings Per Share (EPS)
5,161,343,643
446,112,089
11.57
4,943,488,736
446,112,089
11.08
37. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Net Assets
Number of Shares
Net Asset Value (NAV) Per Share
38. Net Operating Cash Flow Per Share (NOCFPS)
Net Cash Generated from Operating Activities
Number of Ordinary Shares
Net Operating Cash Flows Per Share (NOCFPS)
June 30, 2022
June 30, 2021
59,694,627,089
(19,378,888,788)
40,315,738,301
446,112,089
90.37
50,864,666,106
(14,157,074,351)
36,707,591,755
446,112,089
82.28
July 2021 -June 2022
July 2020 -June 2021
5,027,964,667
446,112,089
11.27
5,614,916,935
446,112,089
12.59
39. Reconciliation of Net Profi t with Cash Flows from Operating Activities
July 2021 - June 2022
July 2020 - June 2021
Profi t after Tax
5,161,343,643
4,943,488,736
Adjustment to reconcile net profi t to net cash provided by operating activities :
Non-cash/ Non-operating items:
Depreciation
Amortization
Gratuity & WPPF
Deferred tax
Exchange rate fl uctuation (Gain)/loss
Dividend Income
(Profi t) /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
2,082,428,864
1,257,796,334
70,445,352
295,701,942
556,665,177
20,837,952
(71,517,955)
(2,136,970)
(45,362,968)
956,977,173
911,565,653
67,131,843
171,840,123
(160,532,671)
6,857,486
(35,987,859)
(3,897,402)
-
(2,215,807,840)
(285,548,974)
(2,108,146,005)
(42,276,201)
92,096,798
(204,141,220)
79,522,339
95,912,021
(128,775,572)
(1,165,455,856)
113,270,668
381,797,104
(9,536,230)
565,982,015
(128,899,418)
(42,707,258)
Net cash Generated from Operating Activities
5,027,964,667
5,614,916,935
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 159
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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
c. Synovia Pharma PLC
Delivery of Products
Distribution Commission
Toll Manufacturing
Cost of Services
Royalty
Dividend
Distribution Commission
Toll Manufacturing
Cost of Goods & Services purchase
Dividend
Distribution Commission
d. Beximco Pharma API Limited
Short Term Advance
The Companies are subject to common control from same source.
31,726,502,984
527,996,777
28,912,990
58,761,237
37,069,142
40,053,896
152,747,023
121,481,156
107,979,512
29,448,615
69,812,844
50,000
1,020,929,771
Dr.
26,540,378
Dr.
36,929,751
Dr.
729,830
Dr.
41. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the year ended June 30, 2022:
Particulars of Assets
Cost
Accumulated
Depreciation
Written Down
Value
Sales Price
Profi t /
(Loss)
Mode of
Disposal
Plant & Machinery
Furniture & Fixtures
Transport & Vehicle
Tk.
47,847,910
642,221
19,244,469
67,734,600
40,278,852
7,569,058
3,535,000
(4,034,058)
606,333
15,822,875
56,708,060
35,888
36,227
339
3,421,594
9,592,283
6,170,689
11,026,540
13,163,510
2,136,970
Negotiation
Negotiation
Negotiation
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
466,129,751
47,002,387
18,305,734
46,952,209
12,816,076
11,475,178
602,681,335
a. The above includes salary, allowances, and perquisites amounting Tk. 71,852,248 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.
160 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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43. Production Capacity and Utilization
Item
Unit
Production
Capacity
Actual Production and Capacity Utilization
June 2022
June 21
July 21 to June 22
July 20 to June 2021
Quantity
Quantity
Quantity
%
Quantity
%
Tablet, Capsule, Suppository & DPI
Million Pcs
6,481.61
5,885.53
7,962.28 122.84%
7,093.47
120.52%
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic, Nebulizer
Solution, Injectable, Inhaler and Insulin
Million Pcs
148.74
102.70
151.39 101.78%
115.36
112.33%
Active Pharmaceuticals Ingredient
Matric Ton
22.00
22.00
4.48
20.36%
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, 2022.
45. Claim not Acknowledged as Debt
There was no claim against the Company not acknowledged as debt as on June 30,2022.
46. Un-availed Credit Facilities
There is no credit facilities available to the company under any contract, not availed of as on June 30, 2022 other than trade credit available in
the ordinary course of business.
47. Foreign Currency Payments & Receipts :
Payments :
Materials, Spares and Capital Machinery
Foreign Currency Loans, Fees & Expenses
Receipts :
Export Sales & Others
Foreign Currency
(Equivalent US$)
116,761,400
20,537,797
Taka
10,121,755,005
1,752,550,996
30,846,371
2,642,465,551
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
a. The Company has contingent liabilities aggregating Tk. 150,788,789 relating to disputed income tax claims for the year 1999, 2007, 2008 and
2010. The Company has fi led Income Tax Reference cases with the High Court Division of the Supreme Court against these claims.
b. There is also a disputed VAT claim aggregating Tk. 144,113,691 against the Company. The Company won the verdict of the Appellate Tribunal
in its favor. The concerned authority has fi led appeal to the honorable High Court against this verdict. Additionally, there are claims of custom duty
aggregating Tk. 22,507,358 against the indemnity bonds issued by the Company in connection with import of certain plant and machinery. The
company has fi led writ petitions with the honorable High Court against these claims. Liability if any, arises on disposal of the cases, the Company
shall provide for such liability in the year of fi nal disposal.
c. The Company has provided corporate guarantees to Dhaka Bank Limited for funded and non-funded working capital facilities upto Taka 105
Crore for Nuvista Pharma and Taka 100 Crore for Synovia Pharma. Both the companies are subsidiaries of Beximco Pharma. The liabilities are
primarily secured by fi xed and fl oating assets of the respective companies. Additionally, Beximco Pharma also issued corporate guarantees to
Agrani Bank Limited for non-funded facilities upto Taka 20 Crore and Taka 15 Crore in favour of Pharmatek Chemicals Limited and Shuktara
Printers Limited,respectively- two exclusive material suppliers of the Company and its subsidiaries.
Annual Report 2021-22 | Beximco Pharmaceuticals Limited (Stand-alone) | 161
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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 2021-22. The dividend proposal
is subject to shareholders’ approval at the forthcoming Annual General Meeting.
b. Board of Directors of Nuvista Pharma Limited (NPL) has declared cash dividend @ 40%, i.e. Tk. 4.00 per share for the year 2021-22. The
proposed dividend is subject to approval of the shareholders of NPL in the forthcoming Annual General Meeting.
Excepting above, no circumstances have arisen since the date of Statement of Financial Position which would require adjustment to, or disclosure
in, the fi nancial statements or notes thereto.
51. Financial Risk Management
The management of Company has overall responsibility for the establishment and oversight of the Company’s risk management framework. Risk
management policies, procedures and systems are reviewed regularly to refl ect changes in market conditions and the Company’s activities. The
Company has exposure to the following risks for its use of fi nancial instruments.
Credit risk
Liquidity risk
Market risk
51.01 Credit Risk
Credit risk is the risk of a fi nancial loss to the Company if a customer or counterparty to a fi nancial 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, 2022 substantial part of the receivables are those from its related company and subject to
insignifi cant credit risk. Risk exposures from other fi nancial assets. i.e. Cash at bank and other external receivables are nominal.
51.02 Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its fi nancial 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 suffi cient 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 suffi cient cash and cash equivalent to meet expected operational expenses including fi nancial
obligations through preparation of the cash fl ow forecast with due consideration of time line of payment of the fi nancial obligation and
accordingly arrange for suffi cient 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 fi nancing.
51.03 Market Risk
Market risk is the risk that any change in market prices such as foreign exchange rates and interest will affect the Company’s income or the
value of its holdings fi nancial 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 60% 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 profi tability. 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 fi nancing costs. With its
strong ability to generate cash fl ows 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 fl oating 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
Dhaka
October 27, 2022
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
162 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2021-22
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Nuvista Pharma Limited
For the Year ended June 30, 2022
Annual Report 2021-22 | Nuvista Pharma Limited | 163
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NUVISTA PHARMA LIMITED
REPORT OF THE DIRECTORS 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 2022 together with the Auditor’s Report thereon.
Operating Performance
The global economy, while recovering from the devastating effect of the COVID-19 pandemic, faced another setback because of the Ukraine war.
The eco-political instability affected Bangladesh as it did to many other countries around the world. The economy that was bouncing back from the
onslaught of the pandemic was severely hindered with a surge in import cost, energy crisis, sharp depreciation of domestic currency and record
high infl ation.
Amidst adverse macroeconomic conditions, Nuvista Pharma showed its resilience and delivered admirable results. Our sales revenue increased by
8.95% reaching to Taka 2,802.4 million in FY 2021-22 against Taka 2,572.1 million of preceding year. The Company earned a pre-tax profi t of Taka
447.9 million registering 6.3% increase over Taka 421.5 million of FY 2020-21. Net profi t after tax was Taka 310.83 million in FY 2021-22 with a
moderate 3.72% growth over the comparable prior period. Earnings Per Share (EPS) and The Net Assets Value (NAV) also increased to Taka 26.45
and Taka 109.26 respectively. The Net Operating Cash Flows (NOCFPS) per share, however, decreased to Taka 20.70 (2020-21: Taka 34.76) due to
increased investment in inventories to support inventory to maintain adequate stock level.
During the year under review, we set a new milestone as we shipped our fi rst ever export consignment to Yemen. This is a modest beginning towards
our goal to widen our market horizon. We strengthened our R&D initiatives to build a robust and innovative product pipeline. We enriched our product
portfolio introducing nine new generics, four of which were launched for the fi rst time in Bangladesh.
Our unceasing sales and marketing efforts and focused strategies further reinforced our brand image and all of our key therapeutic segments
achieved their targeted growth.
Profi t and its Appropriation
Year ended 30 June 2022
Year ended 30 June 2021
Amount in Taka
Net Profi t before tax
Provision for tax
Net Profi t after tax
Unappropriated profi t from previous year
Payment of dividend
Profi t available for appropriation
Recommended for appropriation:
Proposed dividend
Retained Earnings after proposed dividend
447,908,117
(137,073,804)
310,834,313
701,533,076
(47,000,640)
965,366,749
(47,000,640)
918,366,109
421,484,155
(121,785,501)
299,698,654
442,959,982
(41,125,560)
701,533,076
(47,000,640)
654,532,436
Dividend
The Board of Directors recommends 40% cash dividend i.e. Tk. 4.00 per share for the year ended 30 June 2022 subject to the approval of the
Shareholders in the Annual General Meeting (AGM) of the Company.
Composition of Board of Directors
Mr. Nazmul Hassan MP
Mr. S. M. Rabbur Reza
Mr. Mohammad Ali Nawaz
Mr. Mohammad Salauddin
Prof. Mamtaz Uddin Ahmed
: Chairman and Director
: Managing Director
: Director
: Nominee Director, Ministry of Industries
: Independent Director
164 | Nuvista Pharma Limited | Annual Report 2021-22
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Retirement and Re-Election of Director
Mr. Nazmul Hassan, MP, 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 of the shareholders in the AGM.
Auditors
The existing auditors A. Qasem & Co., Chartered Accountants, who were appointed as auditors of the Company in the 47th AGM of the Company
carried out the audit for the year ended 30 June 2022.
A. Qasem & Co., Chartered Accountants, the auditors of the Company retires at this meeting and have expressed their willingness to continue in
offi ce for the year ended on 30 June 2023 subject to the approval of the shareholders in the 48th 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 2023.
On behalf of the Board,
Nazmul Hassan MP
Chairman
13 October, 2022
Annual Report 2021-22 | Nuvista Pharma Limited | 165
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Independent Auditor’s Report
To the Shareholders of Nuvista Pharma Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the fi nancial statements of Nuvista Pharma Limited (the Company), which comprise the statement of fi nancial position as at 30
June 2022, and the statement of profi t or loss and other comprehensive income, statement of changes in equity and statement of cash fl ows for
the year then ended, and notes to the fi nancial statements, including a summary of signifi cant accounting policies.
In our opinion, the accompanying fi nancial statements give a true and fair view of the fi nancial position of the Company as at 30 June 2022, and
its fi nancial performance and its cash fl ows 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 fi nancial statements in Bangladesh, and we have fulfi lled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffi cient 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 fi nancial 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 fi nancial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the fi nancial 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 fi nancial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the fi nancial 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 infl uence the
economic decisions of users taken on the basis of these fi nancial 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 fi nancial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is suffi cient 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.
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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 signifi cant 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 fi nancial 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 fi nancial statements, including the disclosures, and whether the fi nancial
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 signifi cant
audit fi ndings, including any signifi cant defi ciencies 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 verifi cation 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 fi nancial position and statement of profi t 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 Registration No.: 2-PC7202
_____________________________
Mohammad Motaleb Hossain FCA
Enrolment Number: 0950
DVC: 2210200950AS448233
Dhaka, 13 October 2022
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Nuvista Pharma Limited
Statement of fi nancial position
As at 30 June 2022
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
Long term bank borrowings
Gratuity payable
Deferred tax liabilities
Total non-current liabilities
Current liabilities
Short term bank borrowings
Trade payables
Liabilities for expenses
Income tax payable
Other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
Notes
30 June 2022
1,058,252,911
7,547,385
13,011,840
Amount in Taka
30 June 2021
1,094,483,583
13,167,670
14,498,907
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1,078,812,136
1,122,150,160
591,585,003
102,889,638
72,751,430
180,824,117
948,050,188
488,258,898
68,992,110
62,372,394
27,506,945
647,130,347
2,026,862,324
1,769,280,507
117,501,600
1,166,304,413
1,283,806,013
117,501,600
902,470,740
1,019,972,340
12,815,090
173,210,822
109,628,828
295,654,740
146,988,152
122,283,402
100,392,374
7,783,192
69,954,451
447,401,571
-
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
743,056,311
749,308,167
2,026,862,324
1,769,280,507
The annexed notes 1 to 36 form an integral part of these fi nancial statements.
Nazmul Hassan
Chairman
Dhaka
13 October 2022
S. M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
As per our report of same date
A. Qasem & Co.
Chartered Accountants
RJSC Registration No.: 2-PC7202
Mohammad Motaleb Hossain FCA
Enrolment Number: 0950
DVC: 2210200950AS448233
168 | Nuvista Pharma Limited | Annual Report 2021-22
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Nuvista Pharma Limited
Statement of profi t or loss and other comprehensive income
For the year ended 30 June 2022
Revenue
Cost of goods sold
Gross profi t
General and administration expenses
Selling and distribution expenses
Profi t from operations
Non-operating income
Interest expenses
Profi t before tax and WPPF
Contribution to WPPF
Profi t before tax
Income tax expense
Current tax
Deferred tax income/(expense)
Profi t after tax
Other comprehensive income
Notes
30 June 2022
Amount in Taka
30 June 2021
21
22
23
24
25
26
27
27
2,802,357,818
2,572,104,337
(1,362,782,151)
(1,238,556,183)
1,439,575,667
1,333,548,154
(115,250,781)
(860,919,037)
463,405,849
11,855,910
(4,958,236)
470,303,523
(22,395,406)
447,908,117
(104,244,983)
(773,583,577)
455,719,594
3,648,109
(16,809,340)
442,558,363
(21,074,208)
421,484,155
(145,036,508)
(136,132,679)
7,962,704
(137,073,804)
310,834,313
-
14,347,178
(121,785,501)
299,698,654
-
Total comprehensive income for the year
310,834,313
299,698,654
Earnings Per Share (EPS)
26.45
25.51
The annexed notes 1 to 36 form an integral part of these fi nancial statements.
Nazmul Hassan
Chairman
Dhaka
13 October 2022
S. M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
As per our report of same date
A. Qasem & Co.
Chartered Accountants
RJSC Registration No.: 2-PC7202
Mohammad Motaleb Hossain FCA
Enrolment Number: 0950
DVC: 2210200950AS448233
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Nuvista Pharma Limited
Statement of changes in equity
For the year ended 30 June 2022
Particulars
Share
capital
General
reserve
Share
premium
Pre- incorporation
profi t
Revaluation
reserve
Retained
earnings
Total reserves
and surplus
Total
Reserves and surplus
Balance as at 1 July 2020
117,501,600
7,511,991
30,844,170
243,737 162,337,766 442,959,982
643,897,646
761,399,246
Dividend paid
Profi t after tax for the year ended 30 June 2021
-
-
-
-
-
-
-
-
-
(41,125,560)
(41,125,560)
(41,125,560)
- 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
Amount in Taka
Number of shares
Net assets value per share
11,750,160
86.80
Balance as at 1 July 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
Dividend paid
Profi t after tax for the year ended 30 June 2022
-
-
-
-
-
-
-
-
-
(47,000,640)
(47,000,640)
(47,000,640)
- 310,834,313
310,834,313
310,834,313
Balance as at 30 June 2022
117,501,600
7,511,991
30,844,170
243,737 162,337,766 965,366,749
1,166,304,413
1,283,806,013
Notes
11.0
12.0
12.1
12.0
12.2
12.0
12.0
Number of shares
Net assets value per share
The annexed notes 1 to 36 form an integral part of these fi nancial statements.
11,750,160
109.26
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Nuvista Pharma Limited
Statement of cash fl ows
For the year ended 30 June 2022
A.
Cash fl ows from operating activities
Cash receipts from customers and others
Cash paid to suppliers and employees
Cash generated from operation
Interest paid
Interest received
Income tax paid
Net cash generated from operating activities
B.
Cash fl ows 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 fl ows from fi nancing activities
Proceeds from/(payment to) long term bank borrowings
Payment to short term bank borrowings
Payment for lease liability
Dividend paid
Net cash used in fi nancing activities
D. Net increase/(decrease) in cash and cash equivalents (A+B+C)
E. Opening cash and cash equivalents
F. Closing cash and cash equivalents (D+E)
Notes
30 June 2022
30 June 2021
Amount in Taka
2,771,904,931
2,618,368,138
(2,386,536,146)
(2,033,598,933)
385,368,785
584,769,205
18 & 26
(5,473,551)
(19,577,082)
25
19
13
16
2,679,248
-
(139,318,215)
(156,805,498)
243,256,267
408,386,625
(43,346,746)
(56,789,046)
-
(14,870,674)
6,577,717
80,133
(36,769,029)
(71,579,587)
12,815,090
(36,034,605)
(19,086,695)
(244,755,891)
-
(6,446,333)
(46,898,461)
(41,040,257)
(53,170,066)
(328,277,086)
153,317,172
27,506,945
180,824,117
8,529,952
18,976,993
27,506,945
Net operating cash fl ows per share
20.70
34.76
Number of shares
11,750,160
11,750,160
The annexed notes 1 to 36 form an integral part of these fi nancial statements.
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Nuvista Pharma Limited
Notes to the fi nancial statements
As at and for the year ended 30 June 2022
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 offi ce of the Company is located at Plot no. 107/A, Mascot Plaza (8th fl oor), 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-fi brinolytic,
gastrointestinal, musculoskeletal, respiratory, vitamin & mineral supplement and women’s health products which are sold in the domestic and
international markets. The Company also provides toll manufacturing services to other pharmaceutical companies.
2. Basis of preparation
2.1 Statement of compliance
The fi nancial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994
and other applicable laws and regulations.
2.2 Date of authorisation
These fi nancial statements are authorised for issue by the Company’s Board of Directors on 13 October 2022.
2.3 Basis of measurement
The fi nancial statements have been prepared on the historical cost basis except revaluation of certain property, plant and equipment.
2.4 Functional and presentational currency
These fi nancial statements are prepared in Bangladeshi Taka (Taka/Tk.), which is the Company’s functional currency. All fi nancial information
has been presented in Taka and rounded off to the nearest integer.
2.5 Use of estimates and judgments
The preparation of fi nancial 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.
2.6 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 fi nancial statements. The current resources and credit facilities of the Company are suffi cient to meet the
present requirements of its existing business.
2.7 Statement of cash fl ows
Statement of cash fl ows has been prepared in accordance with as per IAS 7: “Statement of cash fl ows” under direct method.
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2.8 Reporting period
These fi nancial statements cover one year from 1 July 2021 to 30 June 2022.
3. Signifi cant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these fi nancial 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 recognized right-of-use
assets representing its rights to use the underlying assets and lease liabilities representing its obligation to make lease payments.
The Company recognizes 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 Offi ce rent
As per IFRS 16, a contract is a lease if the contract conveys the right to control the use of an identifi ed asset. As per terms of the agreement
of offi ce 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 offi ce 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 defi ned under IFRS 16.
3.3 Staff gratuity fund
The Company operates a funded gratuity scheme which was approved by the National Board of Revenue. 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. Though no valuation was
done to quantify actuarial liabilities as per IAS 19: Employee Benefi ts, such valuation is not likely to yield a result signifi cantly different from
the current provision.
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 recognized as an asset if it is probable that future economic benefi ts associated with the asset will
fl ow 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 recognized in the carrying amount of the item if it is probable that
the future economic benefi ts embodied within the part will fl ow to the Company and its costs can be measured reliably. The costs of the
day to day servicing of property, plant and equipment are recognized in the Statement of profi t or loss and other comprehensive income
as incurred.
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3.5.3 Depreciation
Depreciation is recognized in the Statement of profi t 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 fi xtures and fi ttings
Furniture and fi ttings
2.5%
20%-25%
5% -15%
30%
7%
6%
Gain or loss on sale of property, plant and equipment is recognized in the Statement of profi t 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 capitalized 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. Amortization 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 fi nancial 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 recognized in the Statement of profi t or loss and other comprehensive income. For the assets that have indefi nite useful life, the
recoverable amount is estimated at each Statement of fi nancial position date.
No indication of impairment was observed in the year ended 30 June 2022.
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 fl ows are discounted
to their present value using discount rate that refl ects the current market assessment of the time value of money and the risk specifi c to
the asset. For an asset that does not generate signifi cantly independent cash infl ows, the recoverable amount is determined for the cash
generating unit to which the asset belongs.
3.7.3 Reversal of impairment
An impairment loss recognized 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 recognized.
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 recognized for the asset in prior years.
There was no reversal of impairment in the year ended 30 June 2022.
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.
3.9 Taxation
Tax on the Statement of profi t or loss and other comprehensive income for the year comprises current and deferred tax. Tax is recognized
in the statement of profi t or loss and other comprehensive income except to the extent that it relates to items recognized directly in equity,
in which case it is recognized in equity.
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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 fi nancial 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 fi nancial 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 profi t 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 realization 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 recognized only to the extent that it is probable that future taxable profi ts will be available against which the
temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that is no longer
probable that the related tax benefi t will be realized.
3.10 Inventories
Inventories include raw materials, raw materials in transit, work-in-process, fi nished goods and spare parts. These are valued at the lower of
cost and net realizable 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 realizable 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 recognizing and measuring fi nancial assets, fi nancial liabilities and some contracts to buy or sell non-fi nancial
items. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement.
IFRS 9 contains three principal classifi cation categories for fi nancial assets such as measured at amortized cost, Fair Value through Other
Comprehensive Income (FVOCI) and Fair Value through Profi t or Loss (FVTPL). The classifi cation of fi nancial assets under IFRS 9 is generally
based on the business model in which a fi nancial asset is managed and the contractual cash fl ow characteristics. IFRS 9 replaces the previous
fi nancial assets categories defi ned under IAS 39.
IFRS 9 largely retains the existing requirements in IAS 39 for the classifi cation and measurement of fi nancial 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 recognized in the Statement of profi t or loss and other comprehensive income.
3.13 Provisions
A provision is recognized in the Statement of fi nancial position when the Company has a legal or constructive obligation as a result of past
events, and it is probable that an outfl ow of economic benefi ts will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation.
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3.14 Revenue from Contracts with Customers
Revenue is measured based on the consideration specifi ed in a contract with a customer. The Company recognizes 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 signifi cant 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
- Recognize revenue when the entity satisfi es a performance obligation.
3.15 Interest expenses
Interest expense comprises interest expense on overdraft, import loan, demand loan, fi nance lease and term loan. All interest expenses are
recognized in the Statement of profi t or loss and other comprehensive income when it accrues.
3.16 Workers’ Profi t Participation Fund (WPPF)
The Company provides 5% of its net profi t before tax (after charging such expense) as WPPF in accordance with Bangladesh Labor 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 fi nancial statements of the Company.
3.18 Events after the reporting period
Events after the reporting period that provide additional information about the Company’s position at the reporting date are refl ected in the
fi nancial statements. Events after the reporting period that are not adjusting events are disclosed in the notes when material.
3.19 General
Previous year’s fi gures have been rearranged/reclassifi ed wherever considered necessary to conform to current year’s presentation.
176 | Nuvista Pharma Limited | Annual Report 2021-22
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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
fi xtures and
fi ttings
Furniture
fi ttings
Total
Cost or valuation
As at 1 July 2021
Addition/transfer during the year
Adjustment/disposal
As at 30 June 2022
Accumulated depreciation
As at 1 July 2021
Charge during the year
Adjustment/disposal
As at 30 June 2022
Net book value
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
-
-
-
-
726,501
16,444,533
24,214,260
2,366,038
7,233,149
800,979
51,785,460
-
(1,653,835)
(11,690,361)
(2,408,645)
(4,100,000)
-
(19,852,841)
275,608,713
239,181,778
21,077,823
511,207,913
156,745,879
30,473,960
704,976,387
53,343,924
1,992,616,377
-
-
-
-
60,133,558
4,398,732
216,060,846
130,382,313
26,278,268
400,307,237
28,639,221
866,200,175
5,967,144
520,891
22,618,377
10,970,995
2,649,176
42,399,365
2,470,840
87,596,788
-
-
(1,653,832)
(11,278,941)
(2,400,724)
(4,100,000)
-
(19,433,497)
66,100,702
4,919,623
237,025,391
130,074,367
26,526,720
438,606,602
31,110,061
934,363,466
As at 30 June 2022
275,608,713
173,081,076
16,158,200
274,182,522
26,671,512
3,947,240
266,369,785
22,233,863
1,058,252,911
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
4.1 Depreciation charge has been allocated as under:
Factory overhead included in cost of goods sold (Note 22.3)
General and administration expenses (Note 23)
Selling and distribution expenses (Note 24)
4.2 Disclosure for revalued assets
30 June 2022
74,443,171
1,968,906
11,184,711
87,596,788
Amount in Taka
30 June 2021
73,241,118
2,938,395
16,723,148
92,902,661
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 fi rst 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.
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5. Capital work-in-progress
Factory Building
Factory Warehouse
Plant and machinery
Furniture
As at 1 July
2021
Addition
during the
year
Transfer to
property,
plant and
equipment
Amount in Taka
As at 30 June
2022
-
-
-
-
726,501
726,501
-
-
11,665,571
12,323,047
16,444,533
7,544,085
-
800,979
800,979
-
3,300
-
-
Equipment and Electric fi xture and fi ttings
1,502,099
5,734,350
7,233,149
Computer and IT equipment
Motor Vehicles
-
-
2,366,038
2,366,038
24,214,260
24,214,260
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
13,167,670
46,165,175
51,785,460
7,547,385
Amount in Taka
As at
30 June 2022
30 June 2021
14,870,674
-
-
14,870,674
14,870,674
14,870,674
371,767
1,487,067
1,858,834
13,011,840
-
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.
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7. Inventories
Stocks
Finished goods
Semi-fi nished 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
8. Trade receivables
Trade receivables
Other 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. 2,460,877.
9. Loans, advances and deposits
Motor cycle and car loan
General loan
Advance against operating expenses
Security deposits
VAT
Prepaid insurance and rent
LC margin
Others
Amount in Taka
As at
30 June 2022
30 June 2021
154,016,608
50,867,317
269,502,485
24,832,886
37,618,353
659,581
111,155,804
57,816,825
227,201,449
20,787,896
30,462,560
1,544,922
537,497,230
448,969,456
15,385,676
299,097
38,349,175
53,825
8,458,918
299,097
30,436,948
94,479
54,087,773
39,289,442
591,585,003
488,258,898
101,333,448
1,556,190
68,992,110
-
102,889,638
68,992,110
318,570
101,014,878
2,588,327
66,403,783
101,333,448
68,992,110
20,839,130
1,850,981
2,683,454
3,478,251
26,594,909
5,644,596
9,878,546
1,781,563
10,931,774
1,756,172
1,588,959
3,483,184
24,696,302
5,389,765
14,120,004
406,234
72,751,430
62,372,394
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10. Cash and cash equivalents
Cash in hand
Cash at banks
Eastern Bank Limited
The City Bank Limited
Dhaka Bank Limited-SND
Dhaka Bank Limited
IFIC Bank Limited
Shimanto Bank Limited
Janata Bank Limited
Janata Bank Limited-ERQ
National Bank Limited
11. Share capital
Authorized
Amount in Taka
As at
30 June 2022
30 June 2021
196,446
115,867
73,694
591,818
152,369,829
310
19,864,090
28,975
5,059,802
2,272,087
367,066
75,189
520,407
-
655
19,945,406
33,240
6,627,594
-
188,587
180,627,671
27,391,078
180,824,117
27,506,945
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
11,750,160
1,710,000
1,710,000
117,501,600
117,501,600
Shareholding position
Beximco Pharmaceuticals Limited
Government of Bangladesh
Other shareholders
Nominal value (Taka)
Percentage of holding (%)
30 June 2022
100,134,740
15,186,000
2,180,860
117,501,600
30 June 2021
30 June 2022
30 June 2021
100,134,740
15,186,000
2,180,860
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. fi ve 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).
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12. Reserves and surplus
General reserve
Share premium (Note 12.1)
Pre-incorporation profi t
Revaluation reserve (Note 12.2)
Retained earnings
12.1 Share premium
This represents the amount received on 48,959 ordinary shares @ Tk. 630 each issued in 1997.
12.2 Revaluation reserve
This represents revaluation surplus on revaluation of land made during 2006 and 2010.
13. Long term bank borrowings
Dhaka Bank Limited (Note 13.1)
Less: Current portion (Note 16)
13.1 Dhaka Bank Limited
Term loan fi nanced by Dhaka Bank Limited for motor vehicles.
13.2 Collateral
All loans are secured by a registered mortgage on specifi c factory land and buildings of the Company.
Amount in Taka
As at
30 June 2022
30 June 2021
7,511,991
7,511,991
30,844,170
30,844,170
243,737
243,737
162,337,766
162,337,766
965,366,749
701,533,076
1,166,304,413
902,470,740
19,274,167
(6,459,077)
12,815,090
-
-
-
13.3 Security
The loan is secured by hypothecation of fi xed and fl oating assets of the Company including plant and machinery, equipment, furniture and
fi xture, inventories and receivables. Additionally, there is a corporate guarantee issued by Beximco Pharmaceuticals Limited.
14. Gratuity payable
A. Liability for gratuity
Balance as at 1 July
Add : Provision made during the year
Add : Liability for transferred employees
Less: Payments made during the year
B. Gratuity investment
Balance as at 1 July
Add : Amount paid to the Fund
Add: Interest income on gratuity investment
Less: Payments made during the year
Amount in Taka
As at
30 June 2022
30 June 2021
148,113,060
32,314,278
5,520,350
128,748,851
29,392,589
-
185,947,688
158,141,440
(5,802,416)
(10,028,380)
180,145,272
148,113,060
-
12,500,000
236,866
(5,802,416)
6,934,450
-
-
-
-
-
Net gratuity payable (A-B)
173,210,822
148,113,060
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15. Deferred tax liabilities
Balance as at 1 July
Deferred tax expense/(income) (Note 27)
Balance as at 30 June
16. Short term bank borrowings
Bank overdrafts
Dhaka Bank Limited (Limit Tk. 200,000,000)
Short term bank loans
Dhaka Bank Limited
Current portion of long term loan (Note 13)
Amount in Taka
As at
30 June 2022
30 June 2021
117,591,532
131,938,710
(7,962,704)
(14,347,178)
109,628,828
117,591,532
34,516,939
22,608,979
106,012,136
143,465,868
6,459,077
-
146,988,152
166,074,847
Collateral and security given against short-term fi nance are a part of overall fi nancing arrangement with Dhaka Bank Limited as indicated
in note 13. The interest rate is 9.0% per annum and is payable on quarterly rests.
17. Trade payables
Trade payables
This represents amount due against purchase of raw, chemical and packing materials.
18. Liabilities for expenses
Accrued expenses
Audit fees
Accrued interest
19. Income tax payable
Balance as at 1 July
Add:
Income tax provision for current year
Provision for prior years
Less: AIT and treasury deposits for current year
For prior years
Balance as at 30 June
182 | Nuvista Pharma Limited | Annual Report 2021-22
Amount in Taka
As at
30 June 2022
30 June 2021
122,283,402
146,680,936
122,283,402
146,680,936
99,568,603
94,915,558
425,000
398,771
400,000
914,086
100,392,374
96,229,644
2,064,899
22,737,718
143,091,029
136,132,679
1,945,479
-
(109,340,155)
(106,851,067)
(29,978,060)
(49,954,431)
7,783,192
2,064,899
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Amount in Taka
As at
30 June 2022
30 June 2021
2,150,695
3,080,997
4,531,928
3,200,879
22,395,406
21,074,208
-
1,317,699
23,831,849
22,136,988
1,811,832
2,322,460
1,921,355
3,371,107
13,891,176
14,631,227
470,036
367,858
69,954,451
72,553,249
July 2021-June 2022
July 2020-June 2021
Amount in Taka
2,740,596,167
2,505,836,903
17,930,960
43,830,691
-
66,267,434
2,802,357,818
2,572,104,337
20. Other liabilities
Salary and allowances
Provident fund dues
Workers’ profi t participation fund
Tax deducted at source
VAT payable
Tax on salaries
Final settlement of staff
Commission payable
Unpaid dividend
21. Revenue
Domestic sales
Export sales
Toll income
Quantitative details of sales
22. Cost of goods sold
Opening stock of fi nished goods
Purchases (imported and processed products)
Cost of production (Note 22.1)
Cost of goods available for sale
Cost of physician sample
Closing stock of fi nished goods
Unit
Tabs
Caps
Amps & Suspensions
Bottles
Quantity
Quantity
434,218,178
41,777,416
15,634,554
8,118
710,009,655
39,326,286
14,050,488
3,319
July 2021-June 2022
July 2020-June 2021
Amount in Taka
111,155,804
-
1,416,984,316
1,528,140,120
(11,341,361)
(154,016,608)
156,163,823
9,718,528
1,194,139,965
1,360,022,316
(10,310,329)
(111,155,804)
1,362,782,151
1,238,556,183
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22.1 Cost of production
Opening stock of semi-fi nished and WIP
Materials consumed (Note 22.2)
Factory overhead (Note 22.3)
Closing stock of semi-fi nished and WIP
22.2 Materials consumed
Opening stock
Purchase
Closing stock
July 2021-June 2022
July 2020-June 2021
Amount in Taka
57,816,825
810,601,118
599,433,690
44,419,416
679,919,902
527,617,472
1,467,851,633
1,251,956,790
(50,867,317)
(57,816,825)
1,416,984,316
1,194,139,965
278,451,905
864,102,937
(331,953,724)
810,601,118
198,819,244
759,552,563
(278,451,905)
679,919,902
The above cost of goods sold includes Tk. 10,043,868 which is related to export sales.
Item wise quantity and value of fi nished goods stock are as follows :
Stock as June 30, 2022
Tabs
Caps
Amps & Suspensions
Bottle
Stock as June 30, 2021
Tabs
Caps
Amps & Suspensions
Bottle
Unit
pcs.
pcs.
pcs.
pcs.
Unit
pcs.
pcs.
pcs.
pcs.
Quantity
Value (Taka)
55,264,143
9,334,386
1,801,840
30,273
86,154,901
31,803,410
29,335,671
6,722,626
154,016,608
Quantity
Value (Taka)
34,666,898
5,765,220
1,270,207
40,430
62,743,742
18,016,722
21,417,183
8,978,157
111,155,804
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July 2021-June 2022
July 2020-June 2021
Amount in Taka
22.3 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
Factory staff uniform
Printing and stationery
Entertainment
Vehicle repair, maintenance and running cost
Local authority taxes
Other expenses
Depreciation (Note 4.1)
217,552,063
71,105,220
40,079,383
1,727,182
14,990,002
4,788,602
51,274,033
2,243,972
9,116,702
56,507,079
39,834,271
3,277,516
1,639,324
1,866,206
4,279,816
1,390,462
3,318,686
74,443,171
599,433,690
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
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
Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 2,426,831.
23. General and administration expenses
Salaries and allowances
Directors fees (Note 30)
Offi ce rent
Local travelling expenses
Entertainment
Vehicle repair, maintenance and running cost
Postage, telephone, cellphone and internet
Printing and stationery
Repairs and maintenance
Offi ce 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)
69,497,145
273,600
11,740,350
1,412,838
1,149,162
5,257,488
2,416,201
1,187,849
1,950,489
1,391,823
4,273,121
2,331,589
4,037,583
623,261
356,646
205,470
425,000
340,500
2,100,431
2,311,329
1,968,906
Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 1,192,173.
115,250,781
104,244,983
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24. Selling and distribution expenses
July 2021-June 2022
July 2020-June 2021
Amount in Taka
Salaries and allowances
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, cellphone and internet
Printing and stationery
Medical expenses
Training expenses
Market survey and research
Registration and renewals
Insurance premium
Export Insurance, freight and C&F expenses
Offi ce rent
Bad debts
Utilities
Other expenses
Amortization of intangible assets
Depreciation (Note 4.1)
366,083,876
100,679,981
3,449,835
16,218,149
18,851,461
6,784,385
10,869,884
19,811,924
1,313,769
8,545,903
3,235,824
37,069,142
39,533,077
152,747,023
8,726,102
5,677,709
8,243,209
8,666,858
12,305,833
1,809,279
2,234,345
3,295,291
700,535
783,309
2,579,234
666,208
4,608,924
576,016
1,033,457
1,146,717
1,487,067
11,184,711
860,919,037
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
a. Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 9,456,390.
b. Literature, brochure and printed materials includes Tk. 621,681 for export sales.
25. Non-operating income
Gain on disposal of property, plant and equipment
Rental income
Cash incentive on export
Interest income
Exchange rate fl uctuation gain
Sale of miscellaneous items
Forfeited PF refund (Note: 25.1)
25.1 Forfeited PF refund
5,732,021
866,400
1,729,100
2,679,248
188,985
608,800
51,356
11,855,910
65,024
866,400
-
-
-
582,907
2,133,778
3,648,109
In compliance with the FRC circular number 179/FRC/FRM/Notifi cation/2020/2, dated 07 July 2020, the Company has recovered the
forfeited provident fund from the Provident Fund Trust.
186 | Nuvista Pharma Limited | Annual Report 2021-22
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26. Interest expenses
Interest on
Long term loan
Short term fi nance
Finance lease
Bank charges
Bank charges includes Tk. 11,439 which is related to export sales.
27. Income tax expense
Current tax (Note 19)
Deferred tax (income)/expense
Deferred tax (income)/ expense is arrived as follows:
Property, plant & equipment (Difference in book value and tax base)
Gratuity payable
Allowance for expected credit loss
Temporary Difference
Tax rate
Deferred tax liabilities
Deferred tax on revaluation surplus
Deferred tax liabilities at end of the year
Deferred tax liabilities at beginning of the year
Deferred tax charged to profi t or loss and other comprehensive income
July 2021-June 2022
July 2020-June 2021
Amount in Taka
599,439
4,055,776
-
303,021
4,958,236
688,716
15,004,354
372,272
743,998
16,809,340
145,036,508
(7,962,704)
137,073,804
136,132,679
(14,347,178)
121,785,501
445,608,322
(173,210,822)
(2,460,877)
269,936,623
30.00%
80,980,987
28,647,841
109,628,828
117,591,532
(7,962,704)
446,476,889
(148,113,060)
(1,884,860)
296,478,969
30.00%
88,943,691
28,647,841
117,591,532
131,938,710
(14,347,178)
Reconciliation of effective tax rate
2021-22
2020-21
Profi t before tax
Applicable tax rate
Effect of lower rate on export profi t
Effect of lower rate on cash incentive
Effect of non deductible expenses
Effect of temporary difference
Tax impact of prior year adjustment
Deferred tax impact
%
Taka
%
Taka
30.00%
-0.26%
-0.08%
0.56%
1.73%
0.43%
-1.78%
30.60%
447,908,117
134,372,435
(1,185,798)
(345,820)
2,508,933
7,741,279
1,945,479
(7,962,704)
30.00%
-
-
0.52%
1.78%
-
-3.40%
421,484,155
126,445,247
-
-
2,196,706
7,490,726
-
(14,347,178)
137,073,804
28.89%
121,785,501
Annual Report 2021-22 | Nuvista Pharma Limited | 187
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28. Reconciliation of net profi t with cash fl ows from operating activities
July 2021-June 2022
July 2020-June 2021
Amount in Taka
Profi t after tax
310,834,313
299,698,654
Adjustments to reconcile net profi t to net cash with operating activities:
Non-cash expenses:
Depreciation
Amortization
Provision for staff gratuity
Deferred tax
Non-operating items:
Profi t on sale of property, plant and equipment
Changes in working capital:
Increase in inventories
(Increase)/decrease in accounts receivable
Increase in loans, advances and deposits
(Decrease)/Increase in trade payable
Decrease in liabilities for expenses and other liabilities
Increase/(decrease) in income tax payable
Net cash generated from operating activities
29. Capacity utilization
Amps and Suspensions
Tablet
Capsule
30. Remuneration and fees to directors
This relates to Board meeting attendance fee paid to Directors.
31. Payments made in foreign currency
87,596,788
1,487,067
25,097,762
(7,962,704)
106,218,913
(5,732,021)
(5,732,021)
(103,326,105)
(33,897,528)
(10,344,036)
(24,397,534)
(1,818,028)
5,718,293
(168,064,938)
243,256,267
92,902,661
371,767
19,364,209
(14,347,178)
98,291,459
(65,024)
(65,024)
(32,103,169)
42,680,716
(16,412,767)
46,223,570
(9,253,995)
(20,672,819)
10,461,536
408,386,625
Installed
capacity
Unit
Actual
production
Unit
Actual
Utilization
%
19,822,400
1,322,390,400
56,044,880
16,226,403
462,960,606
46,946,857
82%
35%
84%
Particulars
July 2021-June 2022
July 2020-June 2021
Foreign currency
(Equivalent USD)
Taka
Taka
Import of raw, chemicals and packing materials
Import of machinery and spare parts
7,276,651
244,786
657,737,659
21,596,947
679,334,606
521,323,600
37,381,755
558,705,355
188 | Nuvista Pharma Limited | Annual Report 2021-22
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32. Related party disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of related party
Relationship
Nature of transactions
Value of
transaction
Balance as at
30 June 2022
Balance type
Beximco Pharmaceuticals
Limited
Immediate and
ultimate parent
Toll income
28,912,990
887,304
Royalty expenses
37,069,142
3,797,762
Cost of services
58,761,237
9,738,745
Dividend paid
40,053,896
-
Dr.
Cr.
Cr.
Distribution commission
152,747,023
13,891,175
Cr.
33. Capital expenditure commitment
There was no capital expenditure contracted but not incurred or provided for at 30 June 2022.
34. 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.
35. Number of employees engaged
The number of employees engaged for the whole period or part thereof who received a total remuneration of Tk. 36,000 and above were 1,324
(June 2021: 1,281).
36. Events after reporting period
The Board in its meeting dated 13 October 2022 recommended that 40% cash dividend i.e. Tk. 4.00 per share, totaling Tk. 47,000,640 be paid for
the year 2021-22. 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 2021-22 | Nuvista Pharma Limited | 189
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Synovia Pharma PLC.
For the six month period January - June 2022
190 | Synovia Pharma PLC. | Annual Report 2021-22
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Report of the Directors to the shareholders
Of Synovia Pharma PLC
On behalf of the Board of Synovia Pharma PLC, I am pleased to present the Directors’ Report and the audited fi nancial statements
of the Company for the period January- December 2021 and January-June 2022 along with the reports of the Auditors’ thereon.
Financial result and profi t appropriation:
Particulars
Net Profit (Loss) Before Income Tax
Less: Provision for Income Tax
Net Profit After Tax
Other Comprehensive Income/Expense
Add: Profit Broght forward from previous year
Profit Available for Appropriation
ProposedDividend
Un-appropriate Profit Carried Forward
Amount in Thousand Taka
Jan to Jun’22
(113,927)
Jan to Dec’21
(238,834)
Jan to Dec’20
277,590
(10,294)
(124,221)
1,549,031
1,424,810
(67,432)
(306,266)
6,920
1,848,377
1,549,031
-
1,424,810
1,549,031
(53,034)
224,556
(138,846)
1,816,595
1,902,305
(53,928)
1,848,377
Dividend
The Board of Directors reviewed the fi nancial performance of the Company for the period January- December 2021 and January-
June 2022. After due consideration of the current business status, future investment plans and the cash fl ow position of the
Company, the Board proposes to pay no Dividend for the period under review. The proposal is placed in this meeting for the approval
of the shareholders.
Change of Accounting Year
As per section 2(35) of Income Tax Ordinance 1984, subject to few exceptions, the Accounting year of a company shall have to be
July-June. As a multinational company, Sanofi Bangladesh Limited was allowed to maintain January- December Accounting year
keeping uniformity with its parent company. Following acquisition by Beximco Pharma, the status of the Company has changed and
Sanofi Bangladesh Limited is now a national company.
Additionally, to comply with the provisions of section 186 of the Companies Act 1994, the Accounting Year of a subsidiary needs to
be similar to that of the holding Company. Beximco Pharmaceuticals Limited being the new parent company of Synovia Pharma, its
accounting needed to be aligned with that of Beximco Pharma who follows July-June Accounting Year.
In the above context, Accounting Year of Synovia Pharma PLC has been changed to July-June from January- December with effect
from July 2022.
Directors
The Board currently consists of following 6 (six) members including one Independent Director:
Name
Mr. Shah Md. Imdadul Haque
Mr. Md. Nuruzzaman
Mr. Nazmul Hassan, MP
Mr. S. M. Rabbur Reza
Mr. Mohammad Ali Nawaz
Position in the Board
: Director and Chairman
: Director
: Director
: Director and Chief Executive Offi cer
: Director
Dr. Md. Ibraheem Hosein Khan
: Independent Director
Annual Report 2021-22 | Synovia Pharma PLC. | 191
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Retirement and Re-election of Directors
Mr. Shah Md. Imdadul Haque and Mr. Nazmul Hasan, MP, Directors of the Board, retire by rotation as per Article 52 and 93 of the Article
of Association of the Company. Both Mr. Haque and Mr. Hassan being eligible, have offered themselves for re-election in the Board.
The re-election of Directors is now placed for the approval of the Shareholders.
Auditors:
M/s. A. Qasem & Co. Chartered Accountants, Pink City Shopping Mall, Plot #15, Road #103, Gulshan Avenue, Dhaka – 1212 who were
appointed as Auditors of the Company in the 57th Annual General Meeting of the Company has carried out audit for the period up to
30th June 2022.
M/s. A. Qasem & Co. Chartered Accountants, the Auditors of the Company, retires at this meeting and has expressed their willingness
to continue offi ce for the year 2022-2023. After due consideration the Board recommended for the reappointment of A. Qasem & Co.
Chartered Accountants as the auditors for the FY 2022-23.
For and on behalf of the Board of Directors of Synovia Pharma PLC.
Shah Md. Imdadul Haque
Chairman
192 | Synovia Pharma PLC. | Annual Report 2021-22
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INDEPENDENT AUDITOR’S REPORT
To the shareholders of Synovia Pharma PLC
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying fi nancial statements of Synovia Pharma PLC (“the Company”), which comprise the Statement of Financial
Position as at 30 June 2022, and the Statement of Profi t or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement
of Cash Flows for the period from 01 Janaury 2022 to 30 June 2022, and notes to the fi nancial statements including a summary of signifi cant
accounting policies.
In our opinion, the accompanying fi nancial statements present fairly, in all material respects, the fi nancial position of the company as at 30 June
2022, and its fi nancial performance and its cash fl ows for the year than ended in accordance with International Financial Reporting Standards
(IFRSs).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA). 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 fi nancial statements in Bangladesh, and we have fulfi lled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is suffi cient 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 the fi nancial statements of the Company in accordance with IFRSs and
for such internal control as management determines is necessary to enable the preparation of fi nancial statements that are free from material
misstatement, whether due to fraud or error. The Companies Act, 1994 require the Management to ensure effective internal audit, internal control
and risk management functions of the Company.
In preparing the fi nancial statements of the Company, 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 fi nancial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the fi nancial statements of the Company 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
infl uence the economic decisions of users taken on the basis of these fi nancial statements.
As part of the audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the fi nancial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is suffi cient 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.
Annual Report 2021-22 | Synovia Pharma PLC. | 193
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• 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 signifi cant 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 fi nancial 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 fi nancial statements, including the disclosures, and whether the fi nancial
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 signifi cant
audit fi ndings, including any signifi cant defi ciencies 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 explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit;
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 these books; and
c) the statements of fi nancial position and statements of profi t or loss and other comprehensive income dealt with by the report are in
agreement with the books of accounts and returns.
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
____________________
Ziaur Rahman Zia, FCA
Partner
Enrolment Number: 1259
DVC: 2211061259AS352619
Place: Dhaka
Date: 12 October 2022
194 | Synovia Pharma PLC. | Annual Report 2021-22
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Notes
30-Jun-22
31-Dec-21
Amounts in Taka
4
4.b
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
1,697,815,188
53,814,702
31,660,826
88,640,228
1,730,718,286
63,152,466
28,618,547
70,796,445
1,871,930,944
1,893,285,744
1,065,757,823
428,658,632
204,025,153
196,635,027
171,599,695
1,081,033,357
528,752,745
215,199,712
185,447,914
241,151,118
2,066,676,330
2,251,584,846
3,938,607,274
4,144,870,590
359,520,400
633,804,683
3,786,810
1,424,808,834
359,520,400
633,804,683
3,786,810
1,602,958,227
2,421,920,727
2,600,070,120
5,334,216
123,680,975
39,836,338
5,334,216
123,535,725
54,228,741
168,851,529
183,098,682
19,809,186
346,335,027
489,678,689
491,803,439
208,677
13,095,962
182,728,492
689,567,849
476,117,188
192,297
1,347,835,018
1,361,701,788
1,516,686,547
1,544,800,470
3,938,607,274
4,144,870,590
Synovia Pharma PLC
Statement of fi nancial position
As at 30 June 2022
Assets
Non-current assets
Property, plant and equipment
Right of use assets
Intangible assets
Deferred tax asset
Current assets
Inventories
Trade and other receivables
Advances, deposits and prepayments
Advance income tax
Cash and cash equivalents
Total assets
Equity
Equity attributable to holders of the Company
Share capital
Share premium
Reserves and surplus
Retained earnings
Liabilities
Non-current Liabilities
Long term liability for pension fund
Long term liability for gratuity and WPPF funds
Long term borrowings-net of current maturity
Current liabilities
Long term borrowings-current maturity
Short Term Borrowings
Trade and other payables
Accrued expenses
Unpaid dividend
Total liabilities
Total equity and liabilities
Footnotes:
1. Auditor’s report in page 1and 2
2. The accompanying notes 1 to 42 form an integral part of these fi nancial statements.
Shah Md. Imdadul Haque
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Offi cer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
Date: 12 October 2022
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2211061259AS352619
Annual Report 2021-22 | Synovia Pharma PLC. | 195
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Synovia Pharma PLC
Statement of Comprehensive Income
For the six month period January- June 2022
Sales
Cost of sales
Gross profi t
Administrative expenses
Selling, marketing and distribution expenses
Operating profi t
Finance cost
Other income
Profi t before contribution to WPPF
Contribution to workers’ profi t participation fund
Profi t before taxation
Tax expenses
Current tax
Deferred tax
Profi t after taxation
Other comprehensive income/(expenses)
Actuarial (loss)/gain on gratuity & pension
Deferred tax on acturial valuation
Other comprehensive income, net of tax
Notes
For the six month period
January-June 2022
For the year ended 31
December 2021
Amounts in Taka
23
24
25
26
27
28
10
6
1,426,761,942
(888,062,295)
538,699,647
(105,987,096)
(560,497,117)
(127,784,566)
2,336,294,610
(1,582,936,725)
753,357,885
(263,496,798)
(767,493,982)
(277,632,895)
(13,724,162)
27,581,594
(28,376,273)
67,174,988
(113,927,134)
(238,834,180)
-
-
(113,927,134)
(238,834,180)
(28,137,982)
17,843,783
(10,294,199)
(56,236,195)
(11,195,678)
(67,431,873)
(124,221,333)
(306,266,053)
-
-
-
9,545,134
(2,624,912)
6,920,222
Total comprehensive income
(124,221,333)
(299,345,831)
Earnings Per Share (EPS)
30
(34.55)
(85.19)
Footnotes:
1. Auditor’s report in page 1and 2
2. The accompanying notes 1 to 42 form an integral part of these fi nancial statements.
Shah Md. Imdadul Haque
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Offi cer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
Date: 12 October 2022
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2211061259AS352619
196 | Synovia Pharma PLC. | Annual Report 2021-22
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Synovia Pharma PLC
Statement of Changes in Equity
For the six month period January- June 2022
Particulars
Share Capital
Share Premium
Account
Other
Reserve
Retained
Earnings
Total
Amounts in Taka
Balance as at 1 January 2022
Dividend paid for 2020
Total comprehensive income for the period
from Jan 01 to June 30, 2022
359,520,400
633,804,683
3,786,810
1,602,958,227
2,600,070,120
-
-
-
-
-
-
(53,928,060)
(53,928,060)
(124,221,333)
(124,221,333)
Balance as at 30 June 2022
359,520,400
633,804,683
3,786,810
1,424,808,834
2,421,920,727
Net assets value (NAV) per share (Note-31)
673.65
Balance as at 1 January 2021
Dividend paid for 2020
Total comprehensive income for the year 2021
359,520,400
633,804,683
3,786,810
1,902,304,058
2,899,415,951
-
-
-
-
-
-
-
-
(299,345,831)
(299,345,831)
Balance as at 31 December 2021
359,520,400
633,804,683
3,786,810
1,602,958,227
2,600,070,120
Net asset value (NAV) per share (Note-31)
723.21
Footnotes:
1. Auditor’s report in page 1and 2
2. The accompanying notes 1 to 42 form an integral part of these fi nancial statements.
Shah Md. Imdadul Haque
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Offi cer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
Date: 12 October 2022
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2211061259AS352619
Annual Report 2021-22 | Synovia Pharma PLC. | 197
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Synovia Pharma PLC
Statement of Cash Flows
For the six month period January- June 2022
A.
Cash fl ows 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 fl ows from operating activities
B.
Cash fl ows from investing activities:
Acquisition of Property, Plant and Equipment
Intangible Assets
Disposal of Property, Plant and Equipment
Net cash used in investing activities
C.
Cash fl ows from fi nancing activities:
Short term loan
Lease payment
Dividend paid
Net cash fl ows from/(used in) fi nancing activities
D.
E.
F.
Net increase in cash (A+B+C)
Opening cash and cash equivalents
Closing cash and cash equivalents (D+E)
Net operating cash fl ows per share
Notes
For the six month period
January- June 2022
For the year ended
31 December 2021
Amounts in Taka
1,554,336,072
2,441,925,370
(1,647,260,642)
(2,985,877,700)
(92,924,570)
(543,952,330)
(13,724,162)
(28,376,273)
101,577
1,740,043
(39,325,095)
(114,325,728)
(145,872,250)
(684,914,288)
(25,169,848)
(126,783,949)
(525,000)
-
(1,958,714)
10,482,510
(25,694,848)
(118,260,153)
163,606,535
(7,679,180)
171,644,560
(10,101,402)
(53,911,680)
-
102,015,675
161,543,158
(69,551,423)
(641,631,283)
241,151,118
171,599,695
882,782,401
241,151,118
(40.57)
(190.51)
27
28
10
4
5
28
19
17
22
32
Footnotes:
1. Auditor’s report in page 1and 2
2. The accompanying notes 1 to 42 form an integral part of these fi nancial statements.
Shah Md. Imdadul Haque
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Offi cer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
Date: 12 October 2022
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2211061259AS352619
198 | Synovia Pharma PLC. | Annual Report 2021-22
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Synovia Pharma PLC
Notes to the Financial Statements
For the six month period January- June 2022
1. Corporate information
Reporting entity
Synovia Pharma PLC (Synovia Pharma/SPP/the “Company”) is a public limited company incorporated in Bangladesh having
registered offi ce in 6/2/A, Segun Bagicha, Dhaka 1000. The Company has been operating in Bangladesh since 1958 as part of
the British chemical company, May & Baker. Following series of mergers, it was renamed as Sanofi Bangladesh Limited in 2013.
In October 2021, Beximco Pharmaceuticals Limited acquired 54.6% stake of Sanofi Bangladesh Limited held by the Sanofi Group
represented through May & Baker and Fisons Limited. Following the acquisition, it has been renamed as Synovia Pharma PLC. The
Company is now operating as a subsidiary of Beximco Pharmaceuticals Limited. Bangladesh Government holds 45.4% shares of the
Company represented through Bangladesh Chemical Industries Corporation (20%) and Ministry of Industries (25.4%).
SPP produces generic pharmaceutical products and has a strong presence in cardiology, diabetes, oncology, dermatology and CNS.
SPP also imports certain global brands of Sanofi including vaccines, insulins and chemotherapy drugs for sale in the Bangladesh
market.
2. Basis of preparation
2.1 Statement of compliance
These fi nancial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), the
Companies Act 1994 and other applicable laws in Bangladesh.
2.2 Basis of measurement
These fi nancial statements have been prepared under historical cost convention following going concern principle.
2.3 Consistency
The accounting policies and methods of computation used in preparation of fi nancial statements for the period from 01 January to
30 June 2022 are consistent with those policies and methods adopted in preparing the fi nancial statements for the year ended 31
December 2021.
2.4 Functional currency and level of precision
These fi nancial statements have been prepared in Bangladeshi Taka, which is the Company’s functional currency. All fi nancial
information presented has been rounded to the nearest Taka.
2.5 Reporting period
The fi nancial statements have been prepared for a period of six months covering January-June, 2022. The Company used to follow
January-December accounting year which has been changed to July-June to align with the accounting year of the parent company
as well as to comply with the provisions of Income Tax Ordinance 1984 and the Companies Act 1994. The Board of Directors in its
200th meeting held on 22 November 2021 approved the change of the Accounting Year of the Company, to be effective from July
1, 2022.
2.6 Comparatives and reclassifi cation
The current fi nancial statements cover a period of 6 month starting from 01 January 2022 to 30 June 2022. The six-
month audited fi nancial statements became necessary as the Company will follow July-June fi scal year with effect
from 01 July 2022. The last audited fi nancial statements were prepared for a period of 12 month covering 01 January
2021 to 31 December 2021. Therefore, the fi nancial statements for the current period are not entirely comparable.
To facilitate comparison, certain relevant balances pertaining to the previous year have been rearranged/ reclassifi ed wherever
considered necessary to conform to current period’s presentation.
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2.7 Statement of cash fl ows
Statement of cash fl ows is prepared in accordance with IAS 7 “Statement of Cash Flows” and the cash fl ow from the operating
activities are shown under the direct method.
2.8 Use of accounting judgements, estimates and assumptions
The preparation of fi nancial statements in conformity with IFRS requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and in any future periods affected.
Signifi cant accounting judgements
In the process of applying the Company’s accounting policies, management has made the following judgements, which have the
most signifi cant effect on the amounts recognized in the fi nancial statements:
Determining the lease term of contracts – Company as lessee
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option
to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.
Signifi cant estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
signifi cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fi nancial year, are
described below:
Provision for expected credit losses of trade receivables
The Company uses a provision matrix to calculate expected credit loss (ECL) for trade receivables. The provision rates are based
on days past due for groupings of various customer segments that have similar loss patterns. The provision matrix is initially
based on historically observed default rates and then calibrated to adjust the historical credit loss experience with forward-looking
information. The information about the ECL on the trade receivables are disclosed in note-8.
Taxes
Deferred tax assets are recognized to the extent that probable taxable profi t will be available against which the assets can be utilized.
Signifi cant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon
the likely timing and the level of future taxable profi ts, together with future tax planning strategies. Further details on deferred taxes
are disclosed in Note 6.
Leases - Estimating the incremental borrowing rate
The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR)
to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and
with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR therefore, refl ects what the Company ‘would have to pay’, which requires estimation. Further details on leases
are disclosed in Note 4.b and Note 17.
2.9 Authorization for issue
The fi nancial statements were authorized for issue by the Board of Directors on 12 October 2022.
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2.10 Standards issued but not yet effective
The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s fi nancial
statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. However,
this is not an exhaustive list of all the standards issued, the following are the standards which according to the assessment of the
Company is most likely to be applicable but are not expected to have a signifi cant impact on the Company’s fi nancial statements.
A. Amendments To References To Conceptual Framework in IFRS Standards
B. IFRS 17 Insurance Contracts
C. Amendments to IAS 1: Classifi cation of Liabilities as Current or Non-current
The amendments are effective for annual reporting periods beginning on or after 01 January 2023 and must be applied retrospectively.
The Company is currently assessing the impact the amendments will have on current practice.
3. Summary of signifi cant accounting policies
3.1 Property, plant and equipment
i. Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation except land which is measured at cost.
Cost includes expenditures that are directly attributable to the acquisition of the property, plant and equipment.
ii. Subsequent costs
The cost of replacing or upgrading part of an item of property, plant and equipment is recognized in the carrying amount of the item
if it is probable that the future economic benefi ts embodied within the part will fl ow to the company and its cost can be measured
reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and
equipment are recognized in the statement of profi t or loss and other comprehensive income.
iii. Depreciation
Depreciation is recognized in the statement of profi t or loss and other comprehensive income on the straight-line method. Land is
not depreciated. Depreciation on additions made during the period is charged from the month in which the newly acquired assets
are ready for use. The depreciation rates per annum applicable to different categories of property, plant and equipment and software
are as follows:
Asset category
Building
Air conditioner
Plant and machinery
Laboratory equipment
Offi ce equipment
Computer and accessories
Furniture and fi xtures
Motor vehicles
Information systems & software
Rate %
5-10
10
6.67
20
10
33.33
10
20-25
20
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3.2 Intangible assets (Valuation of brand names and software)
As per requirement of IAS 38, intangible assets have been divided into two categories; (i) intangible assets with defi nite useful life
and (ii) intangible asset with indefi nite useful life. As per provision of IFRS 3 and IAS 38, brand names identifi ed as intangible assets
with indefi nite useful life and their individual value is assessable. Valuation of brand names consisting exclusively of products of the
Company has been made under provision and guideline of IAS-38. 5% profi t margin was applied on projected sales of 3 years from
the year 2022 to 2024. The corporate tax @ 30% prevailing at the statement of fi nancial position date was applied to arrive at the
after tax sales forecast.
Valuation of brand name, consisting exclusively of products of the Company has been made under provisions and guideline of IAS 38.
In 2021 fi nancial year, intangible asset for brand valuation has been reassessed and its useful life has been changed from indefi nite
to fi nite useful life in accordance with IAS 8. The carrying value of brand amounting to Taka 26,578,537 will be amortized over a
remaining period of 9 years.
3.3 Leases
IFRS 16 is applied using the modifi ed retrospective approach and therefore the comparative information has not been restated and
continues to be reported under IAS 17 and IFRIC 4.
Synovia Pharma PLC (SPP) as a lessee
SPP 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 and an estimate of costs to dismantle and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less any lease incentives received.
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. In addition, the right of use asset is periodically reduced by
impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using incremental borrowing rate. SPP presents right of use assets and lease liabilities as separate captions in the
statement of fi nancial position.
3.4 Inventories
Raw materials are valued at weighted average cost. Finished goods and work-in-progress are valued at the lower of cost and net
realizable value including allocation of production overheads that relate to bringing the inventories to their ready to sale condition.
3.5 Cash and cash equivalents
Cash and cash equivalents in the statement of fi nancial position comprise cash at banks and on hand and short-term deposits, which
are subject to an insignifi cant risk of changes in value.
3.6 Financial instruments
IFRS 9 sets out requirements for recognizing and measuring fi nancial assets, fi nancial liabilities and some contracts to buy or sell
non-fi nancial items. IFRS 9 largely retains the existing requirements in IAS 39 for the classifi cation and measurement of fi nancial
liabilities. However, it eliminates the previous IAS 39 categories for fi nancial assets of held to maturity, loans and receivables and
available for sale. The adoption of IFRS 9 has not had a signifi cant effect on Company’s accounting policies.
Financial assets
Under IFRS 9, on initial recognition, a fi nancial asset is classifi ed as measured at: amortized cost; Fair Value through Other
Comprehensive Income (FVOCI) – debt investment; Fair Value through Other Comprehensive Income (FVOCI) – equity investment; or
Fair Value Through Profi t or Loss (FVTPL). The classifi cation of fi nancial assets under IFRS 9 is generally based on the business model
in which a fi nancial asset is managed and its contractual cash fl ow characteristics. Company’s fi nancial assets consists mainly of
trade and other receivables.
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Trade and other receivables
Trade and other receivables are initially recognized at cost which is the fair value of the consideration given in return. After
initial recognition, these are carried at cost less impairment losses, if any, due to uncollectible of any amount so recognized.
Financial liabilities
The company recognizes all fi nancial liabilities on the trade date which is the date the company becomes a party to the contractual
provisions of the instrument. The company derecognizes a fi nancial liability when its contractual obligations are discharged,
cancelled or expired. Financial liabilities comprise trade creditors and other fi nancial obligations.
Trade and other payables
The Company recognizes a fi nancial liability when its contractual obligations arising from past events are certain and the settlement
of which is expected to result in an outfl ow from the Company of resources embodying economic benefi ts. The carrying amount of
the trade and other payables is approximate of its fair value due to its short term nature.
3.7 Impairment of assets
Impairment of fi nancial assets (expected credit loss)
An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The
provision rates are based on days past due for groupings of various customer segments with similar loss patterns. The calculation
refl ects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at
the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables
are written-off if past due for more than one year and are not subject to enforcement activity. The maximum exposure to credit risk
at the reporting date is the carrying value of each class of fi nancial assets. The Company does not hold collateral as security.
Impairment of tangible assets
At each statement of fi nancial position date the Company reviews the carrying amounts of its tangible fi xed assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the irrecoverable
amount of the such loss is recognized as expenses.
Impairment of intangible assets
Impairment test has been performed on the intangible assets with indefi nite useful life derived from the valuation of brand names.
In 2021 fi nancial year, intangible asset for brand valuation has been reassessed and its useful life has been changed from indefi nite
to fi nite useful life in accordance with IAS 8.
3.8 Revenue recognition under IFRS 15
Under IFRS 15, revenue is measured based on the consideration specifi ed in a contract with a customer. The Company
recognizes revenue when it satisfi es a performance obligation by transferring control over goods or services to a customer.
The Company considers the terms of the contract with the customers and its customary business practices to determine the
transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for
transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fi xed
amounts, variable amounts, or both.
Revenue from various services rendered is recognized when invoices are raised to customers on completion of the performance
obligation of delivery of the goods or services.
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the
transaction is recognized by reference to the stage of completion of the transaction at the end of the year .
When the outcome of a transaction involving the rendering of services can not be estimated reliably, revenue is recognized only to
the extent of the expenses recognized that are recoverable.
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3.9 Earnings per share
The Company presented Earnings Per Share(EPS) inaccordance with IAS-33 Earning Per Share which has been shownon the face
of the statement of profi t or loss and other comprehensive income. Basic EPS is calculated by dividing the net profi t with weighted
average number of shares outstanding through the year.
3.10 Employee benefi ts
The Company maintains both defi ned contribution plan and defi ned benefi t plan for its eligible permanent employees. The eligibility
is determined according to the terms and conditions set forth in the respective trust deeds and rules.
Defi ned contribution plan (provident fund)
A defi ned contribution plan is a post-employment benefi t plan under which an entity pays fi xed contributions into a separate entity
and has no legal or constructive obligation to pay further amounts. Obligations for contribution to defi ned contribution plans are
recognized as an employee benefi t expense in profi t or loss in the period during which related services are rendered by employees.
Advance contributions, if any, are recognized as an asset to the extent that a cash refund or a reduction in future payment is
available. Contributions to a defi ned contribution plan that are due more than 12 months after the end of the period, if any, in which
employees render the services are discounted to the present value.
In accordance with the Bangladesh Labour Act, 2006, every permanent worker, after completion of his probationary period of his
service in the Company, subscribes to the provident fund, unless otherwise agreed upon, in every month for a sum, and the employer
contributes to it an equal amount.
Defi ned contribution plan (Contribution to Workers Participation Fund and Welfare Fund)
The Company is required to provide 5% of net profi t before tax after charging such expense as contribution to Workers Participation
Fund and Welfare Fund in accordance with Bangladesh Labour Act, 2006 (as amended up to date).
Defi ned benefi t plan (gratuity and pension fund)
A defi ned benefi t plan is a post-employment benefi t plan other than a defi ned contribution plan. The employee gratuity plan is
considered as defi ned benefi t plan as it meets the recognition criteria. The company’s obligation is to provide the agreed benefi ts to
current and former employees.
Short-term employee benefi ts
Short-term employee benefi t obligations are measured on an undiscounted basis and are expensed as the related service is provided.
3.11 Taxation
Current tax
Income tax expense is recognized in the statement of profi t or loss. Current tax is the expected tax payable on the taxable income
for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of
previous years. The applicable tax rate is 27.5% for the Company as per Finance Act, 2022.
Deferred tax
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for fi nancial reporting
purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied
to the temporary differences when they are reversed, based on the laws that have been enacted or substantively enacted by the
reporting date. Deferred tax assets and liabilities are offset if there is a legally 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 recognized to the extent that it is probable that future taxable profi ts will be available against which temporary
differences can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefi t will be realized. Tax rate of 27.5% has been applied to calculate the deferred taxes.
3.12 Foreign currency transactions
Foreign currency transactions are translated into Taka at the rates ruling on the dates of transactions and year end balances of
monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the statement of
fi nancial position date as per IAS 21.
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3.13 Related party transactions
As per IAS-24, parties are considered to be related if one of the party has the ability to control the other party or exercise signifi cant
infl uence over the other party in making fi nancial and operating decisions. The Company has carried out transactions in the ordinary
course of business at an arm’s length basis at commercial rates with related parties. Related party disclosures have been provided
in the fi nancial statements under Note-35.
3.14 Financial instruments risk management objectives and policies
The Company’s principal fi nancial liabilities comprise trade and other payables. The main purpose of these fi nancial liabilities is
to fi nance the operations. The Company’s principal fi nancial assets include trade receivables, and cash and short-term deposits
that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior
management oversees the management of these risks.
Market risk
Market risk is the risk that the fair value or future cash fl ows of a fi nancial instrument will fl uctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, debt and equity investments
and derivative fi nancial instruments.
a. Interest rate risk
The Company’s exposure to the risk of changes in market interest rates is to the extent of the debt obligations i.e. bank
borrowings with fl oating interest rates.
b. Foreign currency risk
The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the receivable from and payable
to group undertaking, which are current. Foreign currency risk is hedged.
c. Other price risk, such as equity price risk and commodity risk
The Company’s exposure to the risk of changes in other price, such as equity price and commodity price volatility is nil.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a fi nancial instrument or customer contract, leading
to a fi nancial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
fi nancing activities, including deposits with banks and fi nancial institutions. Carrying amount represents the maximum exposure
to credit risk.
Liquidity risk
The Company monitors its risk of a shortage of funds using a liquidity forecast. The Company’s objective is to maintain continuity
of funding through effi cient use of working capital. The Company assessed the concentration of risk with respect to fi nancing
and concluded it to be low.
3.15 Events after the reporting period
Events after the reporting period that provide additional information about the Group’s position at the reporting date or those that
indicate the going concern assumption is not appropriate are refl ected in the fi nancial statements. Amounts recognized in the
fi nancial statements are adjusted for events after the reporting period that provide evidence of conditions that existed at the end of
the reporting period. No adjustment is given in the fi nancial statements for events after the reporting period that are indicative of
conditions that arose after the reporting period. Material non-adjusting events are disclosed in the fi nancial statements.
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4 . Property, Plant & Equipment
As at June 30, 2022
Particulars
Land
Building
and Other
Constructions
Plant and
Machinery
Furniture
and Fixtures
Offi ce
Equipment
Total Property
Plant &
Equipment
Right-of-use
Assets
Total
Amount in Taka
Cost
As on Jan 01, 2022
1,010,047,500
967,684,442
1,139,649,406 126,887,494
286,928,956
3,531,197,798
142,355,604
3,673,553,402
Additions during the period
Transferred in & Capitalized during the
period
-
-
6,332,836
5,865,249
2,884,955
4,875,747
19,958,787
16,472,807
25,318,390
-
-
41,791,197
-
-
19,958,787
41,791,197
Cost as on Jun 30, 2022
1,010,047,500
990,490,085
1,170,833,045 129,772,449
291,804,703
3,592,947,782
142,355,604
3,735,303,386
Accumulated Depreciation
As on Jan 01, 2022
Depreciation Charged
Accumulated Depreciation as on Jun 30,
2022
-
-
-
(753,388,053)
(794,476,661)
(89,323,599)
(230,742,801)
(1,867,931,114)
(79,203,138)
(1,947,134,252)
(11,597,405)
(22,691,196)
(3,449,149)
(15,170,083)
(52,907,833)
(9,337,764)
(62,245,597)
(764,985,458)
(817,167,857)
(92,772,748)
(245,912,884)
(1,920,838,947)
(88,540,902)
(2,009,379,849)
Net book value Jun 30, 2022
1,010,047,500
225,504,627
353,665,188
36,999,701
45,891,819
1,672,108,835
53,814,702
1,725,923,537
Capital Work in Progress 4 (a)
Carrying value as on Jun 30, 2022
As on December 31, 2021
25,706,353
-
25,706,353
1,697,815,188
53,814,702
1,751,629,890
Particulars
Land
Building
and Other
Constructions
Plant and
Machinery
Furniture
and Fixtures
Offi ce
Equipment
Total Property
Plant &
Equipment
Right-of-use
Assets
Total
Cost
As on Jan 01, 2021
Additions
1,010,047,500
934,457,825
1,079,958,844 124,925,253
238,136,655
3,387,526,077
150,020,261
3,537,546,338
-
14,369,349
23,941,679
1,962,241
49,846,509
90,119,778
39,286,450
129,406,228
Transferred in & Capitalized
-
18,857,268
35,851,533
-
-
54,708,801
-
54,708,801
Diposal during the year
Cost as on Dec 31, 2021
Accumulated Depreciation
As on Jan 01, 2021
Depreciation Charged
-
-
(102,650)
-
(1,054,208)
(1,156,858)
(46,951,107)
(48,107,965)
1,010,047,500
967,684,442
1,139,649,406 126,887,494
286,928,956
3,531,197,798
142,355,604
3,673,553,402
-
(731,429,342)
(750,533,528)
(82,555,388)
(199,272,304)
(1,763,790,562)
(111,852,755)
(1,875,643,317)
-
(21,958,711)
(44,045,782)
(6,768,211)
(32,524,695)
(105,297,398)
(14,301,476)
(119,598,874)
Adjustment for Assets disposed off
-
102,649
-
1,054,198
1,156,847
46,951,093
48,107,940
Accumulated Depreciation as on Dec 31,
2021
-
(753,388,053)
(794,476,661)
(89,323,599)
(230,742,801)
(1,867,931,113)
(79,203,138)
(1,947,134,251)
Net book value Dec 31, 2021
1,010,047,500
214,296,389
345,172,745
37,563,895
56,186,155
1,663,266,685
63,152,466
1,726,419,151
Capital Work in Progress 4 (a)
67,451,601
-
67,451,601
Carrying value as on December 31, 2021
1,730,718,286
63,152,466
1,793,870,753
206 | Synovia Pharma PLC. | Annual Report 2021-22
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4.a Capital Work in Progress is arrived at as follows:
Opening Balance
Addition during the year
Transferred & Capitalized
Building and Other Constructions
Plant and Machinery
Intangible Assets
Closing balance
4.b Right-of-use Assets
At Cost
Accumulated Depreciation
5. Intangilbe Assets
Particulars
Cost
As on Jan 01, 2022
Additions
Transferred in & Capitalized
As on Jun 30, 2022
Amortization/ Impairment
As on Jan 01, 2022
Amortized During the year
As on Jun 30, 2022
Amount in Taka
Jun 30, 2022
Dec 31, 2021
67,451,601
5,211,060
72,662,661
(46,956,310)
(16,472,807)
(25,318,390)
85,496,230
36,664,172
122,160,402
(54,708,801)
(18,857,268)
(35,851,533)
(5,165,113)
-
25,706,353
67,451,601
142,355,604
(88,540,902)
53,814,702
142,355,604
(79,203,138)
63,152,466
Brand Valuation
ERP System
Total
104,124,112
77,035,588
181,159,700
-
-
525,000
5,165,113
525,000
5,165,113
104,124,112
82,725,701
186,849,813
(80,498,746)
(72,042,406)
(152,541,152)
(1,476,585)
(1,171,249)
(2,647,834)
(81,975,331)
(73,213,655)
(155,188,987)
Carrying Value as on Jun 30, 2022
22,148,780
9,512,046
31,660,826
Carrying Value as on Dec 31, 2021
23,625,366
4,993,181
28,618,547
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6. Deferred tax asset
Balance as at 1 January
Deferred tax on actuarial valuation (Equity Impact)
Deferred tax (expenses)/income
Closing balance of net deferred tax asset
Amount in Taka
30-Jun-22
31-Dec-21
70,796,445
-
17,843,783
88,640,228
84,617,035
(2,624,912)
(11,195,678)
70,796,445
As per International Accounting Standards-12, Income Taxes, para 12.74, the company has offset deferred tax assets and liabilities as
the entity has legally enforceable right to offset deferred tax assets and liabilities relate to income taxes levied by the same tax authority.
IAS 12, Income Taxes, para 61a deferred tax on actuarial gain loss is recognized in other comprehensive income as actuarial gain or loss
on defi ned benefi t plans is recognized in other comprehensive income.
7. Inventories
Raw materials
Packing materials
Work-in-progress
Material-in-transit
Finished goods
255,360,426
184,057,824
45,179,670
23,081,328
32,052,341
18,709,237
164,128,424
289,247,828
578,007,975
556,966,127
1,065,757,823
1,081,033,357
As per International Accounting Standards -2, Inventories, para 36 (a), the company measured inventories at the lower of cost or net
realizable value.
8. Trade and other receivables
Trade receivables
Other receivables
As at closing date, the ageing analysis of trade receivables is, as follows:
Amount due within 6 months
418,311,797
524,062,876
10,346,835
4,689,869
428,658,632
528,752,745
418,311,797
524,062,876
418,311,797
524,062,876
208 | Synovia Pharma PLC. | Annual Report 2021-22
9. Advances, deposits and prepayments
Advance against salary
VAT
Security deposits
Motor vechicle
Prepaid Insurance
Expenses
Others
10. Advance income tax
Opening balance
Provision made during the year
Paid during the year
Closing balance
11. Cash and cash equivalents
Cash at Bank
Current & FC account
12. Share capital
a) Authorized capital
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Amount in Taka
30-Jun-22
31-Dec-21
821,263
29,078,016
49,542,526
50,578,953
10,833,188
40,398,965
22,772,242
468,600
4,072,752
43,778,869
56,876,333
9,408,373
42,105,679
58,489,106
204,025,153
215,199,712
185,447,914
127,358,381
(28,137,982)
(56,236,195)
39,325,095
114,325,728
196,635,027
185,447,914
171,599,695
241,151,118
171,599,695
241,151,118
360,000,000
360,000,000
360,000,000
360,000,000
The authorized capital of the Company is Tk. 360,000,000 divided into 3,600,000 shares of Tk. 100 each.
b) Issued, subscribed and fully paid-up
Issued for cash:
6,027 shares of Taka 100 each
Issued for consideration other than cash:
Share holder of Ex Fisons Limited
(1,794,967 share @ Tk 100 per share)
Share holder of Ex Aventis Limited
(1,794,210 share @ Tk 100 per share)
602,700
602,700
179,496,700
179,496,700
179,421,000
179,421,000
358,917,700
358,917,700
359,520,400
359,520,400
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c) Shareholding position
Beximco Pharmaceutical Ltd.
Ministry of Industries of Bangladesh Govt.
Bangladesh Chemical Industries Corporation
Other Shareholders
13. Share premium
Shareholding
(June 30, 2022)
Quantity
1,963,241
911,767
717,679
2,517
%
54.607%
25.361%
19.962%
0.070%
Amount in Taka
30-Jun-22
31-Dec-21
196,324,100
91,176,700
71,767,900
251,700
196,324,100
91,176,700
71,767,900
251,700
3,595,204
100%
359,520,400
359,520,400
Share premium (1,794,210 share @ Tk. 353.25 per share)
633,804,683
633,804,683
633,804,683
633,804,683
Fisons issued 1,794,210 shares in consideration other than cash to Aventis shareholders against net asset of Tk. 813,239,469. Each
share having a par value of Tk. 100 were issued at Tk.453.25 thus resulting a premium of Tk. 353.25 per share.
14. Reserves and surplus
Non-distributable special reserve (note 14.1)
Capital reserve
3,777,710
3,777,710
9,100
9,100
3,786,810
3,786,810
14.1 This represents 90% of cumulative post tax profi t of certain categories of income up to the year 1992 as defi ned and directed by
Bangladesh Bank.
15. Long term liability for pension fund
a. Pension Payable
Opening balance
Provision made during the year
Interest expense
Paid to employees during the year
Actuarial adjustment loss/ (gain)
b. Investment/Plan asset
Opening balance
Transfer during the year
Interest income
Paid to employees during the year
Closing balance
210 | Synovia Pharma PLC. | Annual Report 2021-22
6,684,836
-
-
(231,897)
-
374,095,392
12,104,682
2,602,642
(356,387,631)
(25,730,249)
6,452,939
6,684,836
1,350,620
-
-
(231,897)
1,118,723
5,334,216
141,830,927
213,304,682
2,602,642
(356,387,631)
1,350,620
5,334,216
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16. Long term liability for gratuity and WPPF funds
a. Gratuity Payable
Opening balance
Provision made during the year
Interest expense
Paid to employees during the year
Settlement cost/ (credit)
Actuarial adjustment loss/ (gain)
b. Investment/Plan asset
Opening balance
Transfer during the year
Interest income
Paid to employees during the year
Closing balance
c. Liability for workers’ profi t participation fund
Opening balance
WPPF loan balance collected through salary
Paid during the year
Closing balance
Total
Amount in Taka
30-Jun-22
31-Dec-21
199,282,939
24,933,606
-
(2,151,393)
-
-
503,302,194
53,047,462
4,676,161
(312,319,345)
(65,608,648)
16,185,115
222,065,152
199,282,939
80,964,901
24,933,606
-
(2,151,393)
303,674,479
84,933,606
4,676,161
(312,319,345)
103,747,114
80,964,901
118,318,038
118,318,038
5,217,687
145,250
-
5,362,937
19,943,176
-
(14,725,489)
5,217,687
123,680,975
123,535,725
The Company operates two defi ned benefi t plans, namely, management staff pension fund and employees’ gratuity fund. Management of
the funds is entrusted to two separate board of trustees that operates the funds under two sets of trust deeds.
17. Long term borrowings-net of current maturity
Lease liability (long term portion)
Total lease liability is arrived at as follows:
Opening balance
Addition during the year
Payment during the year
Closing Balance
Maturity wise presentation
Long term lease liabilities
Short term lease liabilities
39,836,338
39,836,338
54,228,741
54,228,741
67,324,703
-
(7,679,180)
59,645,523
38,139,655
39,286,450
(10,101,402)
67,324,703
39,836,338
19,809,185
59,645,523
54,228,741
13,095,962
67,324,703
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18. Long term borrowings-current maturity
Lease liability (short term portion)
19. Short Term Borrowings
Bank overdraft
Standard Chartered Bank
Citibank
Dhaka Bank
Short term loan
Dhaka Bank Limited
Closing balance
Amount in Taka
30-Jun-22
31-Dec-21
19,809,186
19,809,186
13,095,962
13,095,962
24,913,289
28,597,428
184,741
184,741
321,236,997
103,267,273
346,335,027
132,049,442
-
-
50,679,050
50,679,050
346,335,027
182,728,492
Short Term Borrowing from Dhaka Bank Limited represents revolving credit facilities (Overdraft Facilities) renewable annually. The
borrowing carries 9% Interest. The loan is secured agaisnt hypothecation of fl oating assets of the Company and a corporate guarantee by
parent company, Beximco Pharmacuiticals Limited.
20. Trade and other payables
Payable for goods and services
21. Accrued Expenses
For expenses
22. Unpaid dividend
Opening balance
Dividend declared during the year
Paid for the year
Closing balance
212 | Synovia Pharma PLC. | Annual Report 2021-22
489,678,689
689,567,849
489,678,689
689,567,849
491,803,439
476,117,188
491,803,439
476,117,188
192,297
192,297
53,928,060
(53,911,680)
-
-
208,677
192,297
23. Sales
Domestic
Toll service
Export
24. Cost of sales
Opening work-in-process
Materials consumed (Note-24.1)
Factory overheads (Note-24.2)
Total Manufacturing cost
Closing work-in-process
Cost of goods Manufactured
Opening fi nished goods
Finished goods available
Finished goods purchased
Closing fi nished goods
24.1 Materials consumed
Opening stock
Purchase
Goods available for use
Closing stock
24.2 Factory overheads
Salary & Allowances
Depreciation and amortization
Printing and stationery
Repairs and maintenance
Telephone,cellphone,Internet & postage
Travelling and conveyance
Toll Expense
Electricity, gas and water
Entertainment
Insurance premium
Municipal Tax
Training & conference
Security Expenses
Other Expenses
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Amount in Taka
For the six month period
January-June 2022
For the year ended
31 December 2021
1,249,949,763
176,812,179
-
1,933,844,370
385,634,691
16,815,549
1,426,761,942
2,336,294,610
18,709,237
342,020,748
329,586,949
690,316,934
(23,081,328)
667,235,606
556,966,127
1,224,201,733
241,868,537
(578,007,975)
10,632,569
674,464,215
534,799,081
1,219,895,865
(18,709,237)
1,201,186,628
390,053,623
1,591,240,251
548,662,601
(556,966,127)
888,062,295
1,582,936,725
216,110,165
426,450,679
642,560,844
(300,540,096)
137,931,207
752,643,173
890,574,380
(216,110,165)
342,020,748
674,464,215
190,673,349
41,792,317
23,569,789
24,811,693
876,725
6,533,479
3,241,178
18,554,010
2,641,451
7,523,442
1,524,678
3,016,733
3,173,140
1,654,965
329,586,949
283,584,871
77,225,122
35,931,800
38,521,549
1,720,395
13,502,465
1,102,710
47,708,238
3,629,809
16,643,384
3,090,880
1,269,307
8,886,124
1,982,427
534,799,081
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25. Administrative expenses
Remuneration to employees
Depreciation and amortization
Printing and stationery
Repairs and maintenance
Telephone,cellphone,Internet & postage
Legal and consultancy
Travelling and conveyance
Audit fees
Electricity, gas and water
Entertainment
Registration & Renewals
Training & conference
Rent
Meeting fees
Security charges
Other Expenses
26. Selling, marketing and distribution expenses
Remuneration to employees
Software & licences
Depreciation and amortization
Printing and stationery
Repairs and maintenance
Postage and telephone
Travelling and transportation
Trade subscription
Entertainment
Advertisement
Insurance premium
Registration & Renewals
Training & conference
Salesforce logistics
Rent
Samples expenses
Sales promotion expenses
Events, programs & campaigns
Field operation
Brand development
Market research expenses
Distribution Commission
Other Expenses
For the six month period
January-June 2022
For the year ended 31
December 2021
Amount in Taka
62,157,651
16,875,275
4,463,152
3,410,965
1,026,242
6,868,133
3,289,699
550,000
1,778,624
381,555
1,024,767
496,279
-
253,532
3,378,304
32,918
143,891,135
35,627,883
8,964,229
3,767,638
1,541,639
27,393,517
5,929,285
750,000
3,560,592
755,503
1,379,972
114,553
6,151,353
308,941
7,180,664
16,179,894
105,987,096
263,496,798
286,557,450
52,235,847
6,225,839
7,285,978
1,172,428
7,633,690
30,821,855
659,127
866,468
1,111,000
6,851,653
24,105
2,245,987
-
-
5,119,733
7,741,574
27,808,002
17,077,036
26,876,190
2,349,892
69,812,844
20,419
560,497,117
448,119,849
37,625,431
11,725,150
10,625,857
2,413,731
10,569,292
42,267,299
1,239,525
3,052,381
3,432,891
13,636,740
238,900
10,336,778
336,220
2,820,712
2,027,618
10,512,863
28,327,627
21,006,732
30,838,229
4,731,337
-
71,608,820
767,493,982
214 | Synovia Pharma PLC. | Annual Report 2021-22
26 (a) Remuneration to employees for Retirement benefi t plan.
Remuneration to employees reported under factory overhead, administrative expenses, selling and distribution expenses include Company’s
annual contribution to the following retirement benefi t plans:
Amount in Taka
For the six month period
January-June 2022
For the year ended
31 December 2021
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Defi ned benefi t plans - Gratuity & pension
Defi ned contribution plan - Provident fund
27. Finance cost
Interest on bank borrowings
Net Interest cost-Actuarial Valuation
Interest on fi nance lease obligation
Bank Charges
28. Other income
Interest income
Group contribution for ITS transformation
Miscellaneous income
Profi t/(loss) on sale of Fixed Assets
Forfeited PF refund
Rental income
Forfeited PF refund
24,933,606
9,084,929
34,018,535
65,152,144
21,016,823
86,168,967
7,072,392
-
3,040,790
3,610,980
13,724,162
6,719,310
12,494,600
4,237,494
4,924,869
28,376,273
101,577
8,193,473
4,679,654
-
-
14,606,890
27,581,594
1,740,043
16,386,947
1,277,971
10,482,510
3,946,097
33,341,420
67,174,988
In compliance to FRC circular no.179/FRC/FRM/Notifi cation /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.
29. Contingent liability
1. There are contingent liabilities aggregating Taka 372,315,102 for disputed VAT claims lying with honorable High Court. The Company has
provisioned for Taka 49,124,874 in connection with aforesaid. Liability if any, arises in excess of the provisioned amount on disposal of the
cases, shall be accounted for in the year of their fi nal disposal.
2. The Company provided bank guarantees for a total amount of Taka 18,669,102 in favor of “Titas Gas Transmission and Distribution
Company Limited” and “Green Delta Insurance Company Limited” in connection with operation of the business.
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30. Earnings per share (EPS)
Amount in Taka
For the six month period
January-June 2022
For the year ended
31 December 2021
Earnings attributable to the ordinary shareholders
(124,221,333)
(306,266,053)
Number of shares
Earnings per share (EPS)
31. Net asset value (NAV) per share
Total assets
Less :Total liabilities
Net assets
Number of shares
3,595,204
3,595,204
(34.55)
(85.19)
3,938,607,274
4,144,870,590
(1,516,686,547)
(1,544,800,470)
2,421,920,727
2,600,070,120
3,595,204
3,595,204
Net asset value (NAV) per share
673.65
723.21
32. Net operating cash fl ows per share (NOCFPS)
Net cash generated from operating activities
Number of ordinary share
(145,872,250)
(684,914,288)
3,595,204
3,595,204
Net operating cash fl ows per share (NOCFPS)
(40.57)
(190.51)
33. Income tax expenses
This consists of as follows :
a. Current tax
Tax provision for current year
b. Deferred tax expense
Deferred tax expense is arrived at as follows :
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred Liability (Gratuity & Pension)
Allowance for Bad Debts, Inventory, Sales return provision
Carry forward loss
Temporary difference
Tax rate
Deferred Tax Liability/(Asset) at end of the period
Deferred tax on actuarial valuation (Equity Impact)
Deferred Tax Liability/(Asset) at end of the period
Deferred Tax Liability/(Asset) at beginning of the period
Change in Deferred Tax Liability
(28,137,982)
(56,236,195)
206,672,792
(123,652,254)
(141,975,425)
(263,373,215)
(322,328,102)
27.5%
(88,640,228)
-
(88,640,228)
(70,796,445)
(17,843,783)
222,557,297
(123,652,254)
(151,819,863)
(214,071,932)
(266,986,752)
27.5%
(73,421,357)
2,624,912
(70,796,445)
(84,617,035)
11,195,678
Deferred Tax Expense/(Income)
(17,843,783)
11,195,678
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34. Reconciliation of Net Profi t with Cash Flows from Operating Activities
Amount in Taka
For the six month period
January-June 2022
For the year ended
31 December 2021
Profi t after tax
(124,221,333)
(306,266,053)
Adjustment to reconcile net profi t to net cash Generated from Operating Activities :
Non-cash/Non-operating items:
Depreciation
Amortization
Gain on disposal of fi xed assets
Deferred Tax
Gratuity, Pension & WPPF
Changes in Working Capital
Inventories
Trade and other receivables
Advance, deposits and prepayments
Trade and other payables
Accrued expenses
Gratuity, Pension & WPPF
Advance income tax
47,049,650
(188,128,934)
62,245,597
119,598,874
2,647,834
4,979,282
-
(10,482,484)
(17,843,783)
11,195,678
-
(313,420,283)
(68,700,567)
(190,519,302)
15,275,534
(443,423,251)
100,094,113
50,678,325
11,174,559
(17,501,985)
(199,889,160)
199,573,381
15,686,251
78,243,761
145,249
-
(11,187,113)
(58,089,533)
Net Cash Generated from Operating Activities
(145,872,250)
(684,914,288)
35. Related party disclosures
During the period ended 30 June 2022, the Company entered into the following transactions with its related party:
Name of Related Parties
Nature of Transactions
Value of Transaction
Balance as of
30 June 2022
Balance Type
Beximco Pharmaceuticals Limited
Toll income
121,481,156
Cost of goods purchase/
expense
Cost of service
Dividend paid for 2020
Distribution Commission
62,979,512
45,000,000
29,448,615
69,812,844
36,929,751
Cr.
36. Foreign currency payment & receipts:
The Company made payments of USD 7,333,930 equivalent to Taka 685,722,498 in connection with import of materials, fi nished products,
machinery, spares and IT related services during the reporting period.
Annual Report 2021-22 | Synovia Pharma PLC. | 217
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37. Factory capacity
Amount in Taka
For the six month period
January-June 2022
For the year ended
31 December 2021
Jan- June 2022
Capacity
Production
Utilization (%)
Tablet , Capsule & suppository
Dry syrup, Injectables & Cream
Million Pcs
Million Pcs
322,067,958
244,492,766
8,444,500
8,290,133
76%
98%
38. Capital management
For the purpose of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves and
surplus attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the
shareholder value. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital
to shareholders or issue new shares. Further details on capital are disclosed in Note 12, 13 and 14.
39. Capital commitments
There is no capital commitment at the statement of fi nancial position date.
40. Directors’ remuneration
No remuneration has been paid to the Directors other than the fee for attending board meetings.
41. Receivable from Directors
There is no receivable from the directors at statement of fi nancial position date.
42. Employee details
The number of full time employees as on 30 June 2022 was 824 (December 2021: 927)
218 | Synovia Pharma PLC. | Annual Report 2021-22
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Beximco Pharma API Limited
For the Year ended June 30, 2022
Annual Report 2021-22 | Beximco Pharma API Limited | 219
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Beximco Pharma API Limited
DIRECTORS’ REPORT to the Shareholders
I am pleased to place before you the Directors’ Report and the Audited Financial Statements of Beximco Pharma API Limited for the
year ended 30 June, 2022 along with the report of the auditors thereon.
OPERATION
The Company was formed to set up API manufacturing facility at the API Industrial Park, Gajaria, Munshigang. API Industrial Park
had 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. The
Company was allotted 2 (two) plots in the API Park which are now fully developed to start construction. The volatility in the global API
market has created some uncertainty among the API manufacturers of the country. That is why we have decided to go slow cautiously
to avoid any risk. The project decision has been intentionally put on hold at this moment due to said reason.
Since there was no commercial operation, no operating expense incurred except few insignifi cant regulatory expense as reported in
the fi nancial statements.
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 2022. 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 offi ce for the year 2022-23. 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 2022-23.
On behalf of the Board
Chairman
220 | Beximco Pharma API Limited | Annual Report 2021-22
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Independent Auditors’ Report
To the Shareholders of Beximco Pharma API Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the fi nancial statements of Beximco Pharma API Limited, which comprise the statement of fi nancial position as at 30 June 2022,
and statement of profi t or loss and other comprehensive income, statement of changes in equity and statement of cash fl ows for the year then
ended, and notes to the fi nancial statements, including a summary of signifi cant accounting policies.
In our opinion, the accompanying fi nancial statements give a true and fair view of the fi nancial position of the Company as at 30 June 2022 and
of its fi nancial performance and its cash fl ows 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 fi nancial statements, and we have fulfi lled our
other ethical responsibilities in accordance with these requirements and the IESBA code. We believe that the audit evidence we have obtained is
suffi cient 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 fi nancial 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 fi nancial statements that are free from material misstatement, whether due to fraud or error.
In preparing the fi nancial 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 fi nancial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the fi nancial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to infl uence the economic decision
of users taken on the basis of these fi nancial 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 fi nancial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidences that is suffi cient 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 signifi cant 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 fi nancial 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 fi nancial statements, including the disclosures, and whether the fi nancial
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 signifi cant
audit fi ndings, including any signifi cant defi ciencies in internal control that we identify during our audit.
Annual Report 2021-22 | Beximco Pharma API Limited | 221
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Report on other Legal and Regulatory Requirements
In accordance with the requirements of 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 verifi cation 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 Profi t or Loss and Other Comprehensive Income (Profi t and Loss
Account) dealt with by the report are in agreement with the books.
Dhaka
October 27, 2022
M. J. Abedin & Co.
Chartered Accountants
Reg No: N/A
Hasan Mahmood, FCA
Enrollment No: 0564
DVC: 2210300564AS706531
222 | Beximco Pharma API Limited | Annual Report 2021-22
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Beximco Pharma API Limited
Statement of Financial Position
As at June 30, 2022
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
Notes
June 30, 2022
Amount in Taka
June 30, 2021
4
5
20,000,000
20,000,000
20,000,000
20,000,000
25,920
25,920
55,080
55,080
20,025,920
20,055,080
18,122,764
20,000,000
(1,877,236)
1,903,156
729,830
1,153,326
20,000
18,201,924
20,000,000
(1,798,076)
1,853,156
679,830
1,153,326
20,000
TOTAL EQUITY AND LIABILITIES
20,025,920
20,055,080
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Dhaka
October 27, 2022
Mohammad Ali Nawaz
Director
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
Reg No : N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS706531
Annual Report 2021-22 | Beximco Pharma API Limited | 223
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Beximco Pharma API Limited
Statement of Profi t or Loss and Other Comprehensive Income
For the Year ended June 30, 2022
Notes
July 2021 - June 2022
July 2020 - June 2021
Amount in Taka
Revenue
Cost of Revenue
Gross Operating Profi t/(Loss)
-
-
-
-
-
-
Administrative Expenses
6
(79,160)
(175,075)
Profi t/(Loss) from Operations
Income Tax Expense
Net Profi t/(Loss) after Tax
Other Comprehensive Income
(79,160)
-
(79,160)
(175,075)
-
(175,075)
-
-
Total Comprehensive Income/(Loss) for the Year
(79,160)
(175,075)
Earnings Per Share(EPS)
(0.04)
(0.09)
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Dhaka
October 27, 2022
Mohammad Ali Nawaz
Director
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
Reg No : N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS706531
224 | Beximco Pharma API Limited | Annual Report 2021-22
Beximco Pharma API Limited
Statement of Changes in Equity
For the Year ended June 30, 2022
As at June 30, 2022
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Amount in Taka
Balance as on July 01,2021
20,000,000
(1,798,076)
18,201,924
Particulars
Share Capital
Retained Earnings
Total
Net Loss for the Year
-
(79,160)
(79,160)
Balance as on June 30, 2022
20,000,000
(1,877,236)
18,122,764
Net Asset Value (NAV) Per Share
9.06
As at June 30, 2021
Balance as on July 01,2020
20,000,000
(1,623,001)
18,376,999
Particulars
Share Capital
Retained Earnings
Total
Net Loss for the Year
(175,075)
(175,075)
Balance as on June 30, 2021
20,000,000
(1,798,076)
18,201,924
Net Asset Value (NAV) Per Share
9.10
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Dhaka
October 27, 2022
Mohammad Ali Nawaz
Director
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
Reg No : N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS706531
Annual Report 2021-22 | Beximco Pharma API Limited | 225
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Beximco Pharma API Limited
Statement of Cash Flows
For the Year ended June 30, 2022
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.
July 2021 - June 2022
July 2020 - June 2021
Amount in Taka
50,000
(79,160)
(29,160)
-
-
(29,160)
55,080
25,920
(0.01)
135,470
(175,075)
(39,605)
-
-
(39,605)
94,685
55,080
(0.02)
S.M. Rabbur Reza
Managing Director
Dhaka
October 27, 2022
Mohammad Ali Nawaz
Director
Per our report of even date.
M. J. Abedin & Co.
Chartered Accountants
Reg No : N/A
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2210300564AS706531
226 | Beximco Pharma API Limited | Annual Report 2021-22
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Beximco Pharma API Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2022
1. Reporting Entity
1.1 Statutory Background of the Company
Beximco Pharma API Limited is incorporated in Bangladesh as a Private Limited Company under the Companies Act, 1994. The Company is a
fully owned subsidiary of Beximco Pharmaceuticals Limited (BPL).
1.2 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
2.1 Basis of Measurement
The fi nancial statements have been prepared under historical cost convention which does not take into consideration the effect of infl ation.
2.2 Statement of Compliance
The fi nancial 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.
2.3 Presentation of Financial Statements
The fi nancial statements comprise of:
a) Statement of Financial Position as at June 30, 2022;
b) Statement of Profi t or Loss and other Comprehensive Income for the year ended June 30, 2022;
c) Statement of Changes in Shareholders’ Equity for the year ended June 30, 2022;
d) Statement of Cash Flows for the year ended June 30, 2022 and
e) Notes, comprising summary of signifi cant accounting policies and explanatory information.
2.4 Reporting Period
Financial Statements of the company cover the period of 12 months from July 01,2021 to June 30,2022.
3. Functional and Presentation Currency
The fi nancial statements are prepared and presented in Bangladesh Currency (Taka), which is the company’s functional currency. All fi nancial
information presented has been rounded off to the nearest Taka.
Annual Report 2021-22 | Beximco Pharma API Limited | 227
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4. Cash and Cash Equivalents
This represents of as follows:
Cash at Bank
5. Issued Share Capital
A. Authorized:
100,000,000 Ordinary Shares of Tk. 10 each
B. Issued and Paid-up:
2,000,000 Ordinary Shares of Tk. 10 each paid in cash
C. Composition of Shareholding of Ordinary Shares
Beximco Pharmaceuticals Limited
S.M. Rabbur Reza
Total
6. Administrative Expenses
Legal Expenses
Audit Fees
Bank Charges
Other Expenses
S.M. Rabbur Reza
Managing Director
Dhaka
October 27, 2022
228 | Beximco Pharma API Limited | Annual Report 2021-22
June 30, 2022
Amount in Taka
June 30, 2021
25,920
25,920
55,080
55,080
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
99.995
0.005
100
July 2021 - June 2022
July 2020 - June 2021
Amount in Taka
55,470
20,000
690
3,000
79,160
30,890
20,000
1,185
123,000
175,075
Mohammad Ali Nawaz
Director
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Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
NOTICE OF THE 46TH ANNUAL GENERAL MEETING
Notice is hereby given that the 46th Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held under Virtual
Platform on Thursday, the 22nd December, 2022 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, 2022 together with reports of
the Auditors and the Directors thereon.
2. To declare 35% cash dividend.
3. To elect Directors.
4. To appoint Auditors for the year 2022-23 and to fi x their remuneration.
5. To appoint Corporate Governance Compliance Auditors for the year 2022-23 and to fi x their remuneration.
By order of the Board,
Dated: November 15, 2022
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. 21
November, 2022, 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 Offi ce of the Company, not later than 48 hours before the time fi xed for the meeting.
(3) Annual Report for the year 2021-22 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 Benefi cial 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.
Annual Report 2021-22 | Notice of Annual General Meeting | 229
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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 here by appoint Mr./Ms./Miss……………………
………………………………………………………...............of……………………………………………………………
…………………………as my proxy to attend and vote for me on my behalf at the 46th Annual General Meeting of the Company
to be held on Thursday, 22nd December, 2022 at 10.30 a.m. under virtual platform and at any adjournment thereof.
As witness my hand this……………………………..day of December, 2022.
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 Offi ce of the Company not later than 48 hours before the time
fi xed for the meeting.
Signature Verifi ed
Authorised Signatory
…………………………………
231 | Proxy Form | Annual Report 2021-22
www.beximcopharma.com
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