ANNUAL
REPORT
2022-23
BEXIMCO PHARMACEUTICALS LIMITED
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ANNUAL REPORT
2022-23
BEXIMCO PHARMACEUTICALS LIMITED
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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.
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Contents
About Us
The Company
Purpose
Journey
Subsidiaries
Products
Global Footprint
Manufacturing Capabilities
Research and Development
Global Accreditations
International Media Coverage
Performance Highlights
Operational Highlights
Financial Highlights
Value Addition
Key Financial Indicators
Accolades and Awards
Environmental, Social and Governance
Environmental
Environment, Health, and Safety
Environmental Sustainability Measures
Green Initiatives
Protection of Health and Industrial Hygiene
Social
Human Resource
Training and Development
Corporate Events and CSR
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61
Governance
Board and Board Committees
Executive Committee
Profi le of Directors
Management Committee
Statements and Reports
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
Audited Financials
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
Proxy Form
APPENDIX
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About Us
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The Company
Beximco Pharmaceuticals Limited is a leading manufacturer and exporter of medicines in Bangladesh. Incorporated in
1976, the Company initiated its operations by importing products from Bayer, Germany and Upjohn, USA, and selling them in
the local market. In 1980, Beximco Pharma commenced the manufacturing of these products under licensing agreements
and introduced its proprietary formulation brands in 1983. Since its modest beginnings, the Company has consistently
progressed with remarkable success. 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 over 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 excellence, innovation,
and performance. The Company has been awarded the National Export (Gold) trophy eight times in acknowledgment of
its remarkable contributions to pharmaceutical exports. 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”).
The Company holds 85.2% stake in Nuvista Pharma Limited (formerly Organon Bangladesh), a leading unlisted
pharmaceutical company in Bangladesh specializing in hormone and steroid drugs. In October 2021, it acquired a
controlling interest of 54.6% in Sanofi Bangladesh Limited from the Sanofi Group represented through May & Baker
Limited and Fisons Limited. Subsequent to this acquisition the company was renamed as Synovia Pharma PLC.
Beximco Pharma is listed on Dhaka and Chittagong Stock Exchanges of Bangladesh and the Alternative Investment
Market (AIM) of London Stock Exchange. The Company as a group, employs more than 8,000 full time employees
including professionals like pharmacists, doctors, engineers, chemists, microbiologists, accountants, lawyers, information
technology specialists, and graduates from other disciplines.
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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
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
Stock Exchange Listing
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, Bangladesh
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
Mirpur DOHS Cultural Centre (6th Floor)
Road- 9, Mirpur DOHS,
Pallabi, Dhaka-1216, Bangladesh
Factory
48, Tongi Industrial Area
Tongi, Gazipur, Bangladesh
Associates
BioCare Manufacturing Sdn Bhd
Seri Iskandar Pharmaceutical Park
32600 Bota, Perak, Malaysia
BEL Tower, 19 Dhanmondi, Road No 1
Dhaka-1205, Bangladesh
FTI Consulting LLP
200 Aldersgate
Aldersgate Street, London EC1A 4HD
United Kingdom
Bankers
Janata Bank Ltd.
AB Bank Ltd.
First Security Islami Bank Ltd.
Dhaka Bank Ltd.
Agrani Bank Limited
ODDO BHF SE, Germany
Beximco Pharma API Limited
17 Dhanmondi, Road No. 2
Dhaka-1205, Bangladesh
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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.
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Strategic Goals
Beximco Pharma pursues a set of strategic goals that refl ect our commitment to making a positive impact on human
health, attaining sustainable growth, delivering outstanding results, and fostering trust among all stakeholders.
Commitment to Human Health and Well-Being
We strive to promote health and wellbeing by providing access to modern and cost-effective medicines manufactured in
strict compliance to cGMP guidelines.
Continuous Improvement towards Operational Excellence
We continue to focus on achieving excellence across all aspects of the business making signifi cant investments in people,
process and technology.
Expand Geographic Footprint
We aim to strategically expand our global presence and fortify our position in key markets. By leveraging our competitive
generic drug skills, highly compliant manufacturing platform and forging strategic partnerships, we aim to build a portfolio
of differentiated products and make them accessible to a broader spectrum of patients.
Ensure Financial Resilience
We remain steadfast in our commitment to drive long term growth and shareholders’ value through prioritization of
strategic initiatives, optimization of resources and cost structures, and improving effi ciency.
Prioritize Sustainability in Operations
We pledge to adhere to global standards and guidelines for environmental preservation, social responsibility, and good
governance to ensure the sustainability of our operations.
Empower Workforce
Our people are our greatest asset. We are committed to nurturing an inclusive, diverse, and growth-focused culture.
Through investments in employee development, empowerment, and well-being, we create an environment that
encourages innovation and excellence.
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Journey
1976
Company
incorporated
2003
Introduced
anti-retroviral
(ARV) drugs first
time in Bangladesh
1980
Started manufacturing products of
Bayer AG, Germany and Upjohn Inc.,
USA, under license agreements
1983
Launched own
formulation
brands
1993
Commenced formulation
product export to Russia
1985
Listed on Dhaka Stock Exchange
2005
Got listed on the Alternative Investment Market (AIM) of London Stock Exchange (LSE)
through issuance of GDRs
2006
Launched CFC free
HFA inhalers first time
in Bangladesh
2008
• GMP accreditation from TGA, Australia
• Gulf Central Committee for Drug Registration
(GCC), as the first Bangladeshi Company
2011
Received GMP
accreditation from
AGES, Austria (for
European Union)
2013
Commenced
first time export to Europe
2014
• GMP accreditation from Taiwan Food &
Drug Administration (TFDA) and Health
Canada
• Commenced export to Australia
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• GMP approval from the U.S. FDA as the first
Bangladeshi company
2015-16
• Launched generic version of revolutionary hepatitis C drugs Sovaldi®
and Harvoni®
• Entered the Gulf pharma market (Kuwait)
2016-17
• Commenced export
to the USA
• First overseas collaboration
with BioCare Manufacturing
Sdn Bhd, Malaysia
2018-19
Won the Scrip Award
in the category of ‘‘Community
Partnership of the Year’’
• Won the Scrip Award in the category of
“Best Company in an Emerging Market”
• Oral solid dosage facility received WHO
prequalification
• Acquired 85.22% stake in Nuvista
Pharma PLC.
2017-18
2019-20
• GMP approval from German Regulatory Authority
and Malta Medicines Authority (European Union)
• Global Generics & Biosimilars Awards 2019 as
“The Company of the Year, Asia-Pacific”
• Launched the world's first generic remdesivir
2020-21
• Became exclusive distributor of Serum
Institute of India for AstraZeneca/ Oxford's
Covishield vaccine in Bangladesh
• Acquired Sanofi Bangladesh Limited (54.6% stake)
• CPhI Pharma Award 2020 for“Innovation in response
to COVID-19”
• Launched the world’s first generic version of Paxlovid
(Nirmatrelvir+Ritonavir)
• Received Marketing Authorizations for two products in the UK
• Global Generics & Biosimilars Awards 2022: "Acquisition of the Year"
2021-22
• “The Company of the
Year, Asia Pacific” at the
Global Generics and
Biosimilar Awards 2021
• Launched the world's
first generic molnupiravir
2022-23
• Won National Export Trophy (Gold) for 2019-2020 and 2020-21; Honored for a record 8th time
• Received product approvals from US FDA (three), TGA Australia (three) and Health Canda (one)
• Received recognition as "Forbes Asia’s Best Under a Billion" company for 2022
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Subsidiaries
Nuvista Pharma Limited (NPL/Nuvista Pharma)
Nuvista Pharma Limited (formerly Organon Bangladesh Limited) was a subsidiary of Netherlands-based pharmaceutical giant Organon
International. The Company has been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Gazipur vicinity
close to capital city, Dhaka. Following the divestment of Oraganon’s equity to the local management in 2006, the Company was
renamed as Nuvista Pharma Limited. In 2018, Beximco Pharma acquired majority shareholdings (85.22%) in Nuvista Pharma Limited.
Carrying the legacy of the quality and manufacturing excellence of Organon, the Company is currently producing hormones, steroids,
and other general products in different dosage forms including tablets, capsules, injections, ophthalmic drops etc. Notably, the
Company holds a dominant market position in the fi eld of oral contraceptives and has a pioneering role in the hormone and steroid
segments, showcasing its expertise in these areas. It currently employs around 1,300 employees of diverse professional backgrounds
including pharmacists, doctors, engineers, chemists, microbiologists, accountants, business graduates and other white collar
professionals. The Company has multiple brands enjoying market leadership in their respective market categories.
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Synovia Pharma PLC (SPP/Synovia Pharma)
Synovia Pharma PLC (formerly Sanofi Bangladesh Limited) has six glorious decades of operation in
Bangladesh with an unwavering commitment to healthcare and a legacy of many pioneering brands. It
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 a concern of 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. On 01 October 2021, Beximco Pharma acquired 54.6% stake of the
company held by Sanofi Group represented through May & Baker Limited and Fisons Limited and renamed
as Synovia Pharma PLC. 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 25 acres of land, located at Tongi, Gazipur.
The facilities of the company has manufacturing capabilities across several drug technologies, including
tablets, capsules, tropical, 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 26 katha land.
In 2022, Synovia took on a new identity, stepping forward from the Sanofi legacy. With a clear vision,
Synovia aims to establish itself as a reputable and prominent pharmaceutical company dedicated to
enhancing and enriching the lives of all those it serves. Currently, Synovia Pharma produces approximately
100 branded generic products and employs over 1000 people. The company 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.
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Products
Beximco Pharma currently produces more than 300 generics available in well over 500 presentations. It’s portfolio encompasses wide
range of therapeutic categories namely antibiotics, analgesics, anti-diabetics, respiratory, cardiovascular, central nervous system,
dermatology, gastrointestinal, anti-cancers etc.
The Company has consistant leadership in several of its brands including Napa, Napa Extra, Neofl oxin, Atova, Azmasol, Arlin, Bexitrol F,
D-Rise, Bizoran, Amdocal, Remmo, Tofen, Tyclav etc. It has sound expertise with specialized and advanced drug delivery systems such
as metered dose inhalers, dry powder inhalers, nasal sprays, sterile ophthalmic, lyophilized injectables, oral thin fi lms, suppositories
etc. Beximco Pharma continuously strives to focus on expanding and diversifying its product portfolio in order to ensure that people
have access to newer and better treatment options at an affordable cost. The expanding portfolio, includes high value, differentiated,
and diffi cult to copy products, which contributes as a growth driver to the Company.
Alongside the formulation products, Beximco Pharma also produces several Active Pharmaceutical Ingredients (APIs) for its captive
consumption as well as selling to other pharmaceutical manufacturers. The Company is now 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
Tablet
Tablet
Paracetamol 325 mg + Tramadol 37.5 mg
Paracetamol 500 mg (with Actizorb technology)
JOINTEC MAX
Tablet
Glucosamine 750 mg + Diacerein 50 mg
RELENTUS
DINOVO
VOLIGEL
XIDOLAC
Tablet
Tablet
Cream
Tablet
Meltab
Tizanidine 2 mg
Naproxen 375 mg + Esomeprazole 20 mg, Naproxen 500 mg +
Esomeprazole 20 mg
Diclofenac Sodium 1% 50 mg
Ketorolac Tromethamine 10 mg
Ketorolac Tromethamine 10 mg
Injection
Ketorolac Tromethamine 30 mg / ml
BUFLEX
GLIPITA
GLIPITA M
Tablet
Tablet
Tablet
GLIPITA M XR
Tablet
Nabumetone 500mg and 750mg
Sitagliptin 50 mg, Sitagliptin 100 mg
Sitagliptin 50 mg + Metfomin Hydrochloride 500 mg, Sitagliptin 50 mg
+ Metformin Hydrochloride 1000 mg
Sitagliptin 50 mg + Metfomin Hydrochloride 500 mg XR, Sitagliptin 50
mg + Metformin Hydrochloride 1000 mg XR
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Joint Supplement
Muscle Relaxant
NSAIDs
Anti-Diabetic (OAD)
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Anti-Diabetic (OAD)
TRANETA
TRANETA M
JARDIAN
JARDIMET
EMPALINA
Tablet
Tablet
Tablet
Tablet
Tablet
INFORMET
Tablet
INFORMET XR
Tablet
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
Metfomin Hydrochloride 500 mg, Metformin Hydrochloride 850 mg,
Metformin Hydrochloride 1000 mg
Metfomin Hydrochloride 500 mg XR, Metformin Hydrochloride
750 mg XR
Anti-Diabetic
(Insulin)
GENSULIN
Injection
Human Insulin 100 IU / ml Injection
SEMGLEE
Prefi eld Pen
Insulin Glargine 100IU/ML
REGLUTIDE
Injection
Semaglutide inn 1.34 mg/ml
Anti-Allergy
AXODIN
Tablet
Fexofenadine HCl 120 mg, Fexofenadine HCl 180 mg
Suspension
Fexofenadine HCl 30 mg / 5 ml
DUVENT
TOFEN
BILLI
Tablet
Syrup
Tablet
Syrup
Tablet
Rupatadine 10 mg
Rupatadine 5 mg / 5 ml
Ketotifen Fumarate 1mg
Ketotifen Fumarate 1 mg / 5 ml
Bilastine 20 mg
Meltab
Bilastine 10 mg
Oral Solution
Bilastine
MONOCAST
Tablet
Sachet
Montelukast 4 mg, Montelukast 5 mg, Montelukast 10 mg
Montelukast 4 mg
FIXONASE
Nasal Spray
Fluticasone Furoate 27.5 mcg / Actuation
DYNASE
Nasal Spray
Azelastine hydrochloride 137 mcg + Fluticasone propionate 50 mcg /
Actuation
Cough & Cold
DEXTRIM
TUSPEL
BURATUSS
Anti-Hypertensives
BIZORAN
Syrup
Syrup
Tablet
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
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
AMDOCAL PLUS Tablet
Amlodipine 5 mg + Atenolol 25 mg, Amlodipine 5 mg + Atenolol 50 mg
CARNOVAS
Tablet
Nebivolol 2.5 mg, Nebivolol 5 mg, Nebivolol 10 mg
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Anti-Hypertensives
LEVAMDOCAL
Tablet
Levamlodipine 1.25 mg, Levamlodipine 2.5 mg, Levamlodipine 5 mg
BETAPRO
Tablet
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
CARDOCAL
NITROSOL
PACET
PROSAN
PROSAN HZ
Lipid Lowering
ATOVA
ATOVA EZ
CIBRATE
ROSUTIN
Heart Failure
VIVANTA
Oral
Anticoagulants
Low Molecular
Heparin
Anti-Platelets
Cerebral
Vasotherapeutics
Contrast Agent
APIXA
KINEXA
CLEVEN
ODREL PLUS
TIGEL
CITICOL
LOPIDAM
LOPIDAM
Tablet
Tablet
Tablet
Tablet
Tablet
Spray
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Tablet
Injection
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
Cilnidipine 5 mg, Cilnidipine 10 mg
Glyceryl Trinitrate 400 mcg
Amiodarone Hydrochloride 100 mg, Amiodarone Hydrochloride 200 mg
Losartan Potassium 25 mg, Losartan Potassium 50 mg
Losartan Potassium 50 mg, Hydrochlorothiazide 12.5 mg
Atorvastatin 10 mg, Atovastatin 20 mg, Atovastatin 40 mg
Atorvastatin 10 mg+ Ezetimibe 10 mg, Atorvastatin 20 mg+ Ezetimibe
10 mg
Ciprofi brate 100 mg
Rosuvastatin 5 mg, Rosuvastatin 10 mg, Rosuvastatin 20 mg
Sacubitril 24 mg+ Valsartan 26 mg, Sacubitril 49 mg+ Valsartan 51
mg, Sacubitril 97 mg+ Valsartan 103 mg,
Apixaban 2.5 mg, Apixaban 5 mg
Rivaroxaban 2.5 mg, Rivaroxaban 10 mg, Rivaroxaban 15 mg
Enoxaparin Sodium 20 mg/0.2 ml, Enoxaparin Sodium 40 mg/0.4 ml,
Enoxaparin Sodium 60 mg/0.6 ml, Enoxaparin Sodium 80 mg/0.8 ml
Clopidogrel 75 mg + Aspirin 75 mg
Ticagrelor 90 mg
Injection
Citicoline 500 mg/4 ml
Injection
Lopamidol 370 mg/ml
IV Infusion
Lopamidol 370 mg/ml
Anti-Infectives
ARLIN
Tablet
Linezolid 400 mg, Linezolid 600 mg
Suspension
Linezolid 100 mg / 5 ml
TRIOCIM
Injection
Capsule
Linezolide 2 mg / 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
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
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Anti-Infectives
TURBOCLAV
Tablet
Cefuroxime 250 mg + Clavulanic Acid 62.5 mg, Cefuroxime 500 mg +
Clavulanic Acid 125 mg
AZITHROCIN
Tablet
Azithromycin 250 mg, Azithromycin 500 mg
Suspension
Azithromycin 200 mg / 5 ml
Injection
Azithromycin 500 mg IV
FILMET
NEOFLOXIN
Tablet
Syrup
Tablet
Metronidazole 200 mg, Metronidazole 400 mg, Metronidazole 800 mg
Metronidazole 200 mg / 5 ml
Ciprofl oxacin 750 mg, Ciprofl oxacin 500 mg, Ciprofl oxacin 250 mg
Injection
Ciprofl oxacin 250 mg / 5 ml
Suspension
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
BEMSIVIR
EMORIVIR
MULINA
BEMSIVIR
EMORIVIR
Sachet
Injection
Tablet
Injection
Capsule
Tablet
Injection
Injection
Capsule
Fosfomycin Trometamol 3 gm
Meropenem Trihydrate 500 mg, Meropenem Trihydrate 1 gm
Nirmatrelvir 150 mg + Ritonavir 100 mg
Remdisivir Inn 100 mg, Remdisivir Inn 100mg Lyophilized Powder
Monlupiravir 200 mg
Lefamulin 600 mg
Lefamulin 150 mg/15 ml
Remdisivir Inn 100 mg
Monlupiravir 200 mg
Antacids
PROGAVI
Suspension
Sodium Alginate 500 mg + Sodium Bicarbonate 213 mg +
Calcium Carbonate 325 mg
Anti-Ulcerants
ACIFIX
REMMO
GASTALFET
Tablet
Tablet
Tablet
Rabeprazole 20 mg
Esomeprazole 20 mg, Esomeprazole 40 mg
Sucralfate 500 mg, Sucralfate 1000 mg
Suspension
Sucralfate 1 mg/ 5 ml
Gastroprokinetics
DEFLUX
Tablet
Domperidone 10 mg, Domperidone 10 mg Meltab
Suspension
Domperidone 5 mg / 5 ml
Drops
Tablet
Tablet
Domperidone 5 mg / ml
Prucalopride Succinate 1 mg, Prucalopride Succinate 2 mg
Flupentixol 0.5 mg + Melitracen 10 mg
MOPRIDE
CNS
FRENXIT
NERVALIN
Capsule
Pregabalin 25 mg, Pregabalin 50 mg, Pregabalin 75 mg
Oral Solution
Pregabalin 100 mg/5 ml
NERVALIN CR
XETRIL
EMIJOY
TAMONA
Tablet
Tablet
Tablet
Tablet
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
Hormones
and Steroids
20 | About Us | Annual Report 2022-23
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Anti-Fungals
OMASTIN
Capsule
Fluconazole 150 mg, Fluconazole 200 mg, Fluconazole 50 mg
TERBEX
Suspension
Fluconazole 50 mg / 5 ml
Injection
Tablet
Fluconazole 2 mg / ml Infusion
Terbinafi ne 250 Mg
Cream (5 gm)
Terbinafi ne HCI 1%
Cream (10 gm)
Terbinafi ne HCI 1%
LULEXA
Cream (10 gm)
Luliconazole INN 10 mg/gm
Cream (20 gm)
RESOLVE
Shampoo
Steroids
EXOVATE N
Cream
Luliconazole INN 10 mg/gm
Ketoconazole 2%
Clobetasol Propionate 0.05% + Neomycin 0.35% + Nystatin
1,00,00,000 Units
Ointment
Clobetasol Propionate 0.05% + Neomycin 0.35% + Nystatin
1,00,00,000 Units
Respiratory
AZMASOL
MDI
DPI
Respules
Respirator
Solution
BEXITROL-F
MDI
DPI
MAXHALER
DPI
MDI
SYMBION
Salbutamol 100 mcg / Puff
Salbutamol 200 mcg / Capsule
Salbutamol 2.5 mg / 3 ml Ampoule
Salbutamol 2.5 mg / 3 ml Ampoule, Salbutamol 5 mg / ml in amber
glass bottle
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
Formoterol Fumarate 6 mcg + Budesonide 100 mcg, Formoterol
Fumarate 6 mcg + Budesonide 200 mcg
Formoterol Fumarate 4.5 mcg + Budesonide 80 mcg, Formoterol
Fumarate 4.5 mcg + Budesonide 160 mcg
MAXHALER
Formoterol Fumarate Dihydrate 12 mcg + Budesonide 400 mcg
TIORIVA
DPI
Tritropium Bromide 18 mcg
UPTECH GO
Device
Device for MDI Adult
Device for MDI Child
IPRASOL
MDI
Salbutamol 100 mcg+ Ipratropium 20 mcg
Respules
Respirator
Solution
Salbutamol 2.5 mg+ Ipratropium 0.5 mg/ 3 ml
Salbutamol 2.5 mg/ml+ Ipratropium 0.5 mg/ml
FLOMYST F
MDI
ONRIVA PLUS
ONRIVA TRIO
DPI
DPI
TRIBREZ
BILEXA
Inhaler
DPI
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 110 mcg + Glycopyrronium 50 mcg
Indacaterol 150 mcg+ Glycopyrronium 50 mcg+
Mometasone Furoate 160 mcg
Formoterol Fumarate BP5.5 mcg + Glycopyrro
Fluticasone Furoate Inn 100 mcg & Vilantero 25 mcg
Fluticasone Furoate Inn 200 mcg & Vilantero 25 mcg
Annual Report 2022-23 | About Us | 21
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Respiratory
BEXIHALER
(MORA)
Device
Device for DPI
PULMIDONE
Tablet
IV Fluids
DEXAQUA
DEXORIDE
SALORIDE
Injection
Injection
Injection
PIRFENIDONE BP 267 MG
PIRFENIDONE BP 801 MG
Dextrose 10% W/V, Dextrose 5% W/V
NaCl 0.9% W/V & Dextrose 5% W/V
Sodium Chloride 0.09% W/V
Ophthalmic
ODYCIN D
Eye Drops
Moxifl oxacin Hcl
TEARON PF
Eye Drops
Polyethylene Glycol 400 0.4% + Propylene Glycol 0.3%
TEARON FRESH
Eye Drops
Caboxymethyl Cellulose Sodium 1%
NEOFLOXIN
Eye Drops
Ciprofl oxacin 0.3%
NEOFLOXIN D
Eye Drops
Ciprofl oxacin 0.3% + Dexamethasone 0.1%
Urogenital
URAL-K
MIRASOL
UROFLO
Bio-Similar
OGIVRI
Oncology
XELOCIN
Solution
Tablet
Capsule
Lyophilized
Powder
Tablet
Potassium Citrate 1500 mg + Citric Acid Monohydrate 250 mg / 5 ml
Solution
Mirabegron INN 25 mg, Mirabegron INN 50 mg
Tamsulosin Hydrochloride 0.4 mg
Trastuzumeb INN 440mg/Vial
Capecitabine 500 mg
PACLI
TINICEV
IV Infusion
Paclitaxel 6 mg/ml
Tablet
Tablet
Imaitnib 400 mg Tablet
Imaitnib 100 mg Tablet
Vitamins & Minerals
BEXTRAM GOLD Tablet
High Potency 32 Multivitamin-Mineral
BEXTRAM
SILVER
D-RISE
Tablet
Capsule
Tablet
Chewable
Tablet
High Potency 30 Multivitamin-Mineral
Cholecalciferol 20000 IU, Cholecalciferol 40000 IU
Cholecalciferol 2000 IU
Cholecalciferol 1000 IU
Oral Solution
Cholecalciferol 2000 IU/ ml
HEMOFIX FZ
Tablet
Elemental Iron 48 mg (Ferrous Ascorbate), Folic Acid 0.5 mg And
Elemental Zinc 22.5 mg Tab
NEUROCARE
Tablet
Vitamin B1, B6, and B12
FERINTUS
Injection
Ferric Carboxymaltose 500 mg/10 ml, Ferric Carboxymaltose
100 mg/2 ml
BECORAL D
BECORAL DX
Tablet
Tablet
Coral Calcium
Coral Calcium
22 | About Us | Annual Report 2022-23
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Active
Pharmaceutical
Ingredients (APIs)
APIXABAN
DICLOFENAC
LINAGLIPTIN
PENICILLINS
RIVAROXABAN
ROSUVASTATIN
SITAGLIPTIN
Amoxicillin
Floxacillin
Flucloxacillin
CLINICALLY PROVEN
ANTI-HYPERTENSIVE
Brand in Bangladesh
Annual Report 2022-23 | About Us | 23
Annual Report 2022-23 | About Us | 23
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Products launched
in 2022-23
Beximco Pharma launched 14 generics in 23 different presentations in the domestic market during 2022-23. Mulina (Lefamulin) an
anti-infective drug was introduced for the fi rst time in Bangladesh. In the fi rst quarter of 2023-24, the Company further strengthened
its product basket with introduction of 15 new generics (22 presentations) in the domestic markets, 10 of them being fi rst time in
Bangladesh.
24 | About Us | Annual Report 2022-23
24 | About Us | Annual Report 2022-23
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Global Footprint
Beximco Pharma holds a signifi cant position within the pharmaceutical landscape of our country’s over Taka 300 billion market. The
combined efforts of the Company and its subsidiaries have resulted in a noteworthy market share of 11.1%. Our domestic sales
are the cornerstone of our success, contributing to a substantial 93% of our consolidated revenue. This underscores the pivotal role
played by our local market in driving our growth trajectory.
Alongside our strong domestic presence, the Company remains resolute in its strategic approach to seize opportunities within the
global generic drug sector. Our dedication to this approach has led to a steady growth in our global presence. Currently, we have a
presence in more than 50 countries across all continents. This worldwide expansion showcases our determination to be a leading
exporter. Our continued success in international markets has earned us the prestigious National Export Trophy (Gold) eight times,
acknowledging our outstanding performance on the global platform.
NNoortrthh AAmmemerricicaa
North America
CCICISS CCeennttraal l AAssiaa
CIS Central Asia
EEuuroropopepe
Europe
Central America
& Caribbean Islands
SSoSouutth h AAmmeerriccaa
South America
AAfrfriccaa
Africa
MMMiddddlele EEasastst
Middle East
AsiaAAsAsiiaa
utSS
South Asia
AAuusstrraaliaiaa
Australia
Export Destinations
SSouuthh AAsia
Asia Pacific + CIS
Africa
Europe
NNortth AAmmerica
Belarus
Georgia
Hong Kong
Indonesia
Kazakhstan
Malaysia
Moldova
Mongolia
Philippines
Singapore
Taiwan
Thailand
Timor-Leste
Uzbekistan
Cambodia
Maldives
Myanmar
Nepal
Sri Lanka
Vietnam
MMidddle East
Jordan
Oman
United Arab Emirates
Yemen
Egypt
Ethiopia
Ghana
Ivory Cost
Kenya
Lesotho
Libya
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Somalia
South Africa
Tanzania
Zimbabwe
Netherlands
Turkey
United Kingdom
United States
AAusstrralasia
Fiji
New Zealand
LLattinn &
Cenntrral AAmericaa
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Guyana
Honduras
Jamaica
Mexico
Netherlands Antilles
Panama
Paraguay
Peru
Suriname
Annual Report 2022-23 | About Us | 25
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26 | About Us | Annual Report 2022-23
26 | About Us | Annual Report 2022-23
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Manufacturing Capabilities
Company’s main manufacturing site is situated at Tongi, Gazipur spreading over an area of 23 acres which houses
a number of self-contained 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. All manufacturing units in the plant are highly automated with equipment sourced from
reputed suppliers based in Germany, USA, UK, Switzerland, China, India etc.
Production Facilities
Track I:
Oral Solid Dosage, Semi-solid, Liquid, and Tropical Products Facility
(Unit 3 Plant)
In 2022, Beximco Pharma built a state-of-the-art oral solid dosage (OSD), semi solid, liquid, and topical dosage forms
manufacturing facility, called Unit-3 plant. This impressive complex spans three levels, encompassing a substantial
95,000 square feet on each level. The facility operates with full automation and features state-of-the-art machinery
sourced mostly from Europe. It meticulously maintains environmental conditions through a comprehensive building
management system (BMS).
Unit-3 also houses a fully automated quality assurance and quality control laboratory, laundry facilities, and a
self-contained canteen, establishing itself as a self-suffi cient hub for generic pharmaceutical production. The facility’s
automatic management of temperature, humidity, air pressure, and air changes ensure compliance with regulatory
requirements from entities like the US FDA, TGA Australia, UK MHRA, and Health Canada. It relies on 85 Air Handling units
(AHU), 9 Makeup Air Units (MAU), and 19 Fan Coil Units (FCU), incorporating HEPA fi lters with a 99.997% effi ciency to fi lter
the air within the facility. The facility is capable of producing 5,000 million tablets & capsules and 130 million liquid bottles
(extendable up to 9,000 million and 200 million ,respectively round the clock basis), 36 million creams and ointments and
25 million suppositories.
Ophthalmic, Intravenous Fluids, Nasal Spray & Respiratory Products
The Company operates advanced production facilities specializing in various medical products, including ophthalmic,
nasal spray, intravenous fl uids, insulin, non-steroidal respiratory medications, and injectables such as liquid injectables
ampoule, pre-fi lled syringes, and lyophilized injectables products. The ophthalmic products manufactured by the company
are exported to international markets, including Europe, Canada, and the UK. The ophthalmic facility has the capacity to
produce 4 million units annually. The other manufacturing capabilities encompass 10 million units of intravenous fl uids
(IV), 3 million units of insulin, 4.32 million ampoules, 3.6 million prefi lled syringes and lyophilized injectables, along with
0.65 million units of nasal spray.
Annual Report 2022-23 | About Us | 27
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28 | About Us | Annual Report 2022-23
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Track II:
Oral Solid Dosage (Unit 2) Facility
The multi-story Oral Solid Dosage manufacturing facility, spanning 65,000 square feet, was established in 2000 to produce
pharmaceuticals for regulated markets such as the USA, Europe, and countries in the Far East like Australia. It commenced operations
in 2006, specializing in tablets and non-penicillin capsules. The facility boasts state-of-the-art technology and is approved by the
US FDA. Products manufacturing in this unit are being exported to the regulated markets including USA , Australia and Canada. The
facility is capable of producing 3,000 million tablets and 400 million capsules.
Annual Report 2022-23 | About Us | 29
Annual Report 2022-23 | About Us | 29
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Inhaler Facility (MDI and DPI)
We produce Metered Dose Inhaler (MDI), Dry Power Inhaler (DPI)
and multidose Dry Power Inhaler (mDPI) in 2 Inhaler facility.
The facility uses state-of the-art technology from European
sources like Switzerland, Germany, Italy & UK and are known
for producing eco-friendly HFA-based inhalers since 2006.
MDI plant has separate facility for steroids and non-steroids
and is capable of using both single stage and double stage
manufacturing facilities. It has mDPI German diskette technology.
The facility is capable of producing 20 million cans of inhalers
and 200 million pieces of DPI capsules. This capacity is further
being expanded. A new unit is in the phase of completion with a
further manufacturing capacity of 8 million units.
Penicillin
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. The facility is capable of
producing 42.24 million capsules and 3 million bottles per year.
Active Pharmaceutical Ingredients (APIs)
Beximco Pharma has manufacturing facility for multiple APIs
such as Apixaban, Linagliptin, Rivaroxaban, Rosuvastatin,
Sitagliptin, Penicillin, and Diclofenac in two plants. The current
manufacturing capacity is around 22MT.
Liquefi ed Nitrogen
The Company has a Liquefi ed Nitrogen plant with
capacity of 1.75 million litres of gas for internal use
and external sales.
30 | About Us | Annual Report 2022-23
30 | About Us | Annual Report 2022-23
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Energy, Utility, and Other Infrastructure
Beximco Pharma is equipped with essential utility facilities to support its operations. These include a 12.5 MW captive power plant
and a 10.6 MW DESCO power facility. The Company also manages 10 boilers, collectively capable of producing 26 tons of steam.
Among these, fi ve exhaust boilers are powered by generator exhaust gas, contributing to a total capacity of 6 tons. In terms of utilities
consumption, the Company uses water at a rate of 312 m3 per hour, drawn through three borewell pumps. Chilled water, essential for
various processes, is provided by 15 chillers at a rate of 5.5 TR (tons of refrigeration). Beximco Pharma has also taken steps towards
responsible environmental management with on-site facilities. This includes an Effl uent Treatment Plant (ETP) boasting a capacity of
605 square meters. Additionally, an Incinerator with a daily capacity of 250 kg ensures the proper disposal of waste generated from
the Company’s operations.
The Company has a Plant Engineering Services (PES) Department staffed with 200 Engineering professionals, provides engineering
support to all facilities of the site. The core responsibility of PES is to ensure uninterrupted operation process with the highest output
through timely maintenance. PES played an important role in providing uninterrupted utility supplies, power, water, air, and steam
throughout the factory.
The Company has a spacious 327,000 sq ft GMP-compliant warehousing facility. The facilities are managed by the Warehouse
Department which perform functions such as goods receiving, quality inspections, shelf-life monitoring, storage, and inventory
management. The warehouse is equipped with advanced HVAC and cooling systems to maintain temperatures from -15 to -25°C,
2-8°C, 8-15°C, and 15-25°C, tailored to product requirements. Temperature and humidity are continuously controlled via a
computerized system. Our vehicles are equipped with temperature control systems for safe transport of sensitive materials and
products.
Annual Report 2022-23 | About Us | 31
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32 | About Us | Annual Report 2022-23
32 | About Us | Annual Report 2022-23
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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. Beximco Pharma places a signifi cant focus on
Research and Development (R&D) to drive innovation and growth. Our R&D approach is responsive to
market needs and incorporates cutting-edge technologies. The Company’s skilled multidisciplinary team
of scientists develops complex and unique products, serving both domestic and international markets with
stringent regulations. Our key strength lies in our ability to excel in creating a portfolio of differentiated
products beyond conventional dosage forms including metered dose inhalers, dry powder inhalers, nasal
sprays, dispersible tablets, prefi lled syringes, lyophilized injectables, sterile ophthalmic, etc. The R&D
team has demonstrated their strong capacity for innovation and rapid response to health crises. Their
successful introduction of generic versions of various COVID-related medications, such as the world’s fi rst
generic remdesivir and the Bexovid tablet, serves as clear evidence of their capabilities. This helped the
Company earn CPhl Pharma Award 2020 for “Innovation in Response to COVID-19”.
Beximco Pharma’s R&D represents a dedication to innovation, fostered by its state-of-the-art research
lab. Through its responsive, diversifi ed, and collaborative R&D initiatives, Beximco Pharmaceuticals
stands as a dynamic contributor to healthcare solutions. In fostering a collaborative environment, we have
established partnerships with accredited contract research organizations and research institutes. These
collaborations extend to the undertaking of studies and research initiatives, encompassing bioequivalence
testing and in-vitro studies.
Our R&D facility spans an area of 20,000 sq. ft and encompasses three key sub-departments: Formulation
Research Development (FRD), Analytical Development Lab (ADL), and Development Quality Assurance
(DQA). Within these departments, a dedicated team of 106 scientists actively contributes to our research
endeavors. In the realm of Formulation Development, our R&D boasts a range of specialized lab-scale
equipment, such as high shear mixer granulators, Fluid Bed Dryers/Processor, automatic fi lm coating
machines, compression machines, Bi-layer compression machines, blister machines, and more. For
analytical pursuits, our facility is equipped with state-of-the-art instruments, including HPLC, UPLC,
Atomic absorption spectrophotometer, dissolution tester, Laser diffraction-based particle size analyzer,
FTIR, GC-MS, Andresen Cascade impactor (ACl), Next-generation impactor (NGI), Oxford Laser equipment,
DSC, Hot-stage microscope, among others.
In the fi scal year 2022-23, our R&D department achieved notable milestones in product development,
generating a good number of products for the domestic as well as international markets including regulated
market like the USA, Australia, and Canada. These accomplishments underscore our commitment to
innovation, regulatory compliance, and the continual expansion of our product portfolio to meet the
dynamic demands of both domestic and international markets.
Annual Report 2022-23 | About Us | 33
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34 | About Us | Annual Report 2022-23
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Global Accreditations
• U.S. FDA
• Therapeutic Goods Administration (TGA), Australia
• German Regulatory Authority (Regierungspräsidiums Tübingen)
• Gulf Central Committee (GCC)
• World Health Organization (WHO)
• ANVISA (Brazil)
Annual Report 2022-23 | About Us | 35
Annual Report 2022-23 | About Us | 35
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Performance Highlights
36 | Performance Highlights | Annual Report 2022-23
Operational Highlights
I
I
I
I
I
I
P
P
H
P
HH
P
P
H
PH
E
E
E
E
G
G
RG
G
G
G
R
R
R
R
R
H
H
H
H
F
F
F
F
F
F
L
L
L
L
OL
O
OI
O
O
O
I
I
I
I
R
RG
R
R
R
R
G
G
G
M
M
M
MH
M
M
H
H
H
H
H
T
T
AT
T
T
T
A
A
A
A
A
S
S
S
S
NS
S
N
N
N
C
CC
C
C
E
E
EE
EE
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Annual Report 2022-23 | Performance Highlights | 37
Annual Report 2022-23 | Performance Highlights | 37
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Beximco Pharma (Consolidated)
2022-23
2021-22
Net sales
BDT 39,266.7m 13.3%
BDT 34,669.2m
Domestic
sales
Export
sales
Gross
Profi t
Profi t
before tax
Profi t
after tax
BDT 36,503.5m 14.1%
BDT 31,984.1m
BDT 2,763.2m 2.9%
BDT 2,685.1m
BDT 17,313.4 m 9.4%
BDT 15,820.2m
BDT 6,068.8m 9.2%
BDT 6,686.9m
BDT 4,524.5m 9.5%
BDT 4,998.6m
EPS
BDT 10.34 9.9%
BDT 11.48
NAVPS
BDT 97.91 7.6%
BDT 91.01
38 | Performance Highlights | Annual Report 2022-23
38 | Performance Highlights | Annual Report 2022-23
38 | Performance Highlights | | AAnnual Report 2022-23
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Beximco Pharma (Stand-alone)
2021-22
2022-23
BDT 30,220.7m
9.2% BDT 32,991.9m
Net sales
BDT 27,553.6m
9.7% BDT 30,238.9m
BDT 2,667.2m
3.2% BDT 2,753.0m
BDT 13,712.8m
5.9% BDT 14,520.4m
BDT 6,736.5m
12.5% BDT 5,897.3m
BDT 5,161.3m
11.1% BDT 4,588.0m
Domestic
sales
Export
sales
Gross
Profi t
Profi t
before tax
Profi t
after tax
BDT 11.57
11.1% BDT 10.28
EPS
BDT 90.37
7.5% BDT 97.15
NAVPS
35% Cash Dividend for 2022-23
Annual Report 2022-23 | Performance Highlights | 39
Annual Report 2022-23 | Performance Highlights | 39
Annual Report 2022-23 | Performance Highlights | 39
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Value Addition
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Bought-in-Materials & Services
Applications:
Salaries and Benefi ts to Employees
Interest to Lenders
Duties & Taxes to Govt. Exchequer
Dividend to Shareholders
Retained by the Company
Amount in Million Taka
2022-23
2021-22
Taka
%
Taka
%
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23,867
6,705
1,286
9,215
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2022- 23
2021- 22
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Salaries and
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Employees
Interest to
lenders
Duties & Taxes
to Govt.
Exchequer
Dividend to
Shareholders
Retained by
the Company
40 | Performance Highlights | Annual Report 2022-23
40 | Performance Highlights | Annual Report 2022-23
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Key Financial Indicators
Amount in Million Taka unless stated otherwise
Net Revenue
Profit Before Tax
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Earning Per Share (Taka)
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Dividend (%)
NAV Per Share (Taka)
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* Includes 10% Stock Dividend
Annual Report 2022-23 | Performance Highlights | 41
Annual Report 2022-23 | Performance Highlights | 41
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Accolades and Awards
42 | Performance Highlights | Annual Report 2022-23
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Annual Report 2022-23 | Performance Highlights | 43
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44 | Performance Highlights | Annual Report 2022-23
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ICSB’s Corporate Governance Award (Gold) 2022
National Productivity and Quality Excellence Award 2021
Annual Report 2022-23 | Performance Highlights | 45
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46 | Performance Highlights | Annual Report 2022-23
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Beximco Pharma on Forbes Asia’s
“Best Under a Billion” Company list
Rabbur Reza, COO of Beximco Pharma, received this prestigious recognition for the third consecutive time in a
grand ceremony held in Manila, Philippines.
Annual Report 2022-23 | Performance Highlights | 47
Annual Report 2022-23 | Performance Highlights | 47
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International Media Coverage
Beximco Pharma Managing Director, Nazmul Hassan MP Interviewed by CNN
76,529 views Apr 27, 2023
Beximco Pharma is a global leader in the manufacturing of generic drugs, with its products sold around the world. Based in Bangladesh, the company has long understood the importance
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low and help Bangladesh become a global hub for generic drugs.
48 | Performance Highlights | Annual Report 2022-23
48 | About Us | Annual Report 2022-23
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3(cid:8)(cid:9)(cid:15)(cid:6)(cid:4)(cid:8)(cid:14)(cid:20)(cid:4)(cid:8)(cid:9)(cid:15)(cid:6)(cid:7)(cid:25)(cid:4)(cid:2)(cid:9)(cid:4)(cid:8)(cid:9)(cid:4):;<)*(cid:4)(cid:29)(cid:6)/(cid:8)(cid:26)(cid:15)(cid:2)(cid:4)(cid:11)(cid:12)(cid:20)(cid:4)(cid:15)(cid:11)(cid:12)(cid:9)(cid:10)(cid:6)(cid:18)(cid:4)(cid:12)(cid:13)(cid:13)(cid:4)(cid:14)(cid:11)(cid:12)(cid:14)(cid:4)(cid:12)(cid:9)(cid:18)(cid:4)(cid:14)(cid:2)(cid:18)(cid:12)(cid:21)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)
(cid:20)(cid:8)(cid:14)(cid:24)(cid:12)(cid:25)(cid:4)(cid:2)(cid:9)(cid:4)(cid:8)(cid:20)(cid:4)(cid:23)(cid:12)(cid:20)(cid:14)(cid:13)(cid:21)(cid:4)(cid:18)(cid:8)(cid:17)(cid:4)(cid:6)(cid:16)(cid:6)(cid:9)(cid:14)(cid:27)(cid:4)46(cid:23)(cid:6)(cid:16)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)(cid:13)(cid:12)(cid:20)(cid:14)(cid:4)(cid:3)(cid:2)(cid:24)(cid:16)(cid:4)(cid:18)(cid:6)(cid:15)(cid:12)(cid:18)(cid:6)(cid:20)*(cid:4)(cid:13)(cid:8)(cid:3)(cid:6)(cid:4)(cid:6)/(cid:7)(cid:6)(cid:15)(cid:14)(cid:12)(cid:9)(cid:15)(cid:21)(cid:4)(cid:11)(cid:12)(cid:20)(cid:4)
(cid:8)(cid:9)(cid:15)(cid:16)(cid:6)(cid:12)(cid:20)(cid:6)(cid:18)(cid:4)(cid:14)(cid:2)(cid:4)<’(cid:4)(cid:21)(cid:6)(cid:12)(cid:16)(cid:20)(cid:4)(cid:12)(cid:9)(cid:18)(cid:4)(cid:22)(cid:6)(cid:4)(cid:9)(cid:2)(cid:22)(cid:4)(cid:7)(cid:16)(cid:2)(cid:18)(cid:24)(cid:15)(cid:6)(cid:4)(cid:12)(cid:13)(cid:26)(cid:2)(cid:20)(cid:14)(cid:4);<(cid:4)(cid:7)(cid:6)(cid:16)(cid:4)(cid:15)(cid:6)(cid:9)(cid:14)(cid:4)(cid:2)(cid:3)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)(cid:14)(cid:2)(cid:14)(cid:12)(cid:13)(cid:4)
(cid:26)(cid:6)(cid:18)(cid:8)(cid:15)(cid:8)(cid:9)(cid:6)(cid:4)(cid:26)(cid:12)(cid:18)(cid:6)(cid:4)(cid:3)(cid:2)(cid:16)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)(cid:15)(cid:2)(cid:24)(cid:9)(cid:14)(cid:16)(cid:21)(cid:27)(cid:4)@(cid:18)(cid:18)(cid:8)(cid:25)(cid:4)(cid:2)(cid:9)(cid:12)(cid:13)(cid:13)(cid:21)*(cid:4)(cid:22)(cid:6)(cid:4)(cid:6)/(cid:7)(cid:2)(cid:16)(cid:14)(cid:4)(cid:14)(cid:2)(cid:4)(cid:2)(cid:23)(cid:6)(cid:16)(cid:4)<((cid:4)(cid:15)(cid:2)(cid:24)(cid:9)(cid:14)(cid:16)(cid:8)(cid:6)(cid:20)*(cid:4)
(cid:8)(cid:9)(cid:15)(cid:13)(cid:24)(cid:18)(cid:8)(cid:9)(cid:10)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)(cid:11)(cid:8)(cid:10)(cid:11)(cid:13)(cid:21)(cid:4)(cid:16)(cid:6)(cid:10)(cid:24)(cid:13)(cid:12)(cid:14)(cid:6)(cid:18)(cid:4)(cid:26)(cid:12)(cid:16)(cid:5)(cid:6)(cid:14)(cid:20)(cid:4)(cid:2)(cid:3)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)(cid:30)3@*(cid:4)@(cid:24)(cid:20)(cid:14)(cid:16)(cid:12)(cid:13)(cid:8)(cid:12)(cid:4)(cid:12)(cid:9)(cid:18)(cid:4)1(cid:24)(cid:16)(cid:2)(cid:7)(cid:6)*5(cid:4)
7(cid:12)(cid:19)(cid:19)(cid:24)(cid:16)(cid:4)(cid:6)/(cid:7)(cid:13)(cid:12)(cid:8)(cid:9)(cid:20)(cid:27)
4(cid:28)(cid:6)(cid:4)(cid:12)(cid:16)(cid:6)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)A(cid:4)(cid:16)(cid:20)(cid:14)(cid:4)(cid:30)3(cid:4)C#@(cid:4)(cid:12)(cid:7)(cid:7)(cid:16)(cid:2)(cid:23)(cid:6)(cid:18)(cid:4)(cid:7)(cid:11)(cid:12)(cid:16)(cid:26)(cid:12)(cid:4)(cid:15)(cid:2)(cid:26)(cid:7)(cid:12)(cid:9)(cid:21)(cid:4)(cid:8)(cid:9)(cid:4)(cid:29)(cid:12)(cid:9)(cid:10)(cid:13)(cid:12)(cid:18)(cid:6)(cid:20)(cid:11)*(cid:4)(cid:12)(cid:9)(cid:18)(cid:4)(cid:9)(cid:2)(cid:22)(cid:4)
(cid:12)(cid:15)(cid:15)(cid:2)(cid:24)(cid:9)(cid:14)(cid:4)(cid:3)(cid:2)(cid:16)(cid:4)(cid:2)(cid:23)(cid:6)(cid:16)(cid:4)’((cid:4)(cid:7)(cid:6)(cid:16)(cid:4)(cid:15)(cid:6)(cid:9)(cid:14)(cid:4)(cid:2)(cid:3)(cid:4)(cid:14)(cid:11)(cid:6)(cid:4)(cid:15)(cid:2)(cid:24)(cid:9)(cid:14)(cid:16)(cid:21)!(cid:20)(cid:4)(cid:14)(cid:2)(cid:14)(cid:12)(cid:13)(cid:4)(cid:6)/(cid:7)(cid:2)(cid:16)(cid:14)(cid:4)(cid:2)(cid:3)(cid:4)(cid:7)(cid:11)(cid:12)(cid:16)(cid:26)(cid:12)(cid:15)(cid:6)(cid:24)(cid:25)(cid:4)(cid:15)(cid:12)(cid:13)(cid:4)
(cid:7)(cid:16)(cid:2)(cid:18)(cid:24)(cid:15)(cid:14)(cid:20)(cid:27)(cid:4)8(cid:11)(cid:6)(cid:4)(cid:29)(cid:12)(cid:9)(cid:10)(cid:13)(cid:12)(cid:18)(cid:6)(cid:20)(cid:11)(cid:4)(cid:7)(cid:11)(cid:12)(cid:16)(cid:26)(cid:12)(cid:4)(cid:8)(cid:9)(cid:18)(cid:24)(cid:20)(cid:14)(cid:16)(cid:21)(cid:4)(cid:8)(cid:20)(cid:4)(cid:9)(cid:2)(cid:22)(cid:4)(cid:23)(cid:6)(cid:16)(cid:21)(cid:4)(cid:23)(cid:8)(cid:19)(cid:16)(cid:12)(cid:9)(cid:14)(cid:4)(cid:12)(cid:9)(cid:18)(cid:4)(cid:3)(cid:2)(cid:16)?
(cid:22)(cid:12)(cid:16)(cid:18)?(cid:13)(cid:2)(cid:2)(cid:5)(cid:8)(cid:9)(cid:10)*(cid:4)(cid:12)(cid:9)(cid:18)(cid:4)(cid:29)(cid:6)/(cid:8)(cid:26)(cid:15)(cid:2)(cid:4)0(cid:11)(cid:12)(cid:16)(cid:26)(cid:12)(cid:4)(cid:11)(cid:12)(cid:20)(cid:4)(cid:7)(cid:13)(cid:12)(cid:21)(cid:6)(cid:18)(cid:4)(cid:12)(cid:4)(cid:20)(cid:8)(cid:10)(cid:9)(cid:8)A(cid:4)(cid:15)(cid:12)(cid:9)(cid:14)(cid:4)(cid:16)(cid:2)(cid:13)(cid:6)(cid:4)(cid:8)(cid:9)(cid:4)(cid:14)(cid:11)(cid:12)(cid:14)(cid:27)5
Annual Report 2022-23 | Performance Highlights | 49
Annual Report 2022-23 | About Us | 49
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ENVIRONMENTAL, SOCIAL
and GOVERNANCE (ESG)
50 | About Us | Annual Report 2022-23
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Environmental
Beximco Pharma cares for the environment and recognizes its responsibility to protect and promote sustainable and eco-friendly
practices. The Company is dedicated to ensuring a safe and healthy workplace, fostering environmental excellence in its operations,
and meeting global Environmental, Health, and Safety (EHS) standards. We deliberately choose technologies that meet environmental
standards and employ state-of-the-art machinery in our manufacturing processes. Our facilities and processes are designed to
minimize the environmental impact of manufacturing activities. We responsibly control, dispose of, and manage liquid and solid
wastes, as well as gaseous emissions generated from our operations. Adhering to relevant government regulations and industry
standards, all our manufacturing facilities hold certifi cations from the Department of Environment. To prioritize the health and safety
of employees, contractors, visitors, and neighbours affected by our operations, to maintain a rigorous Occupational Health and Safety
System. This includes a dedicated Environment, Health, and Safety (EHS) Department staffed with qualifi ed personnel overseeing
compliance.
Environment, Health and Safety
EHS Team
Beximco Pharma has a strong EHS Committee comprising of senior-level management people dedicated to supervising environmental,
health, and safety (EHS) issues and ensuring that agreed standards are followed. Their ongoing dedication is aimed at building an
EHS excellence culture throughout the organisation. This Committee meets periodically to review the current operation, identify
potential areas for improvement, and recommend remedial actions as needed. In addition to the EHS Committee, Beximco Pharma
has established a Safety Committee, which includes representatives from both management and the workers. This group is crucial in
monitoring and managing health and safety issues, acting as a channel to bring any relevant issues to the attention of management.
Furthermore, they participate in activities aiming at raising awareness of safety issues throughout the Company’s facilities.
Beximco Pharma’s internal team conducts annual audits concentrating on Environment, Health, and Safety. Any areas of improvement
discovered during these audits are promptly conveyed to the relevant departments for necessary measures. This proactive strategy
demonstrates the Company’s commitment to maintaining high standards of EHS performance and ensuring the well-being of its
employees and the broader community.
EHS Policy
The EHS policy of Beximco Pharma is a comprehensive commitment aimed at ensuring the well-being of its workforce and minimizing
the environmental impact of its operations. The key elements of this policy include:
• EHS Compliance
The Company is devoted to establishing itself as an EHS-compliant entity, unwaveringly adhering to the laws of the land and fulfi lling
the requirements outlined by regulators.
• Environmental Impact Reduction
Beximco Pharma actively endeavors to reduce the impact of its activities on the environment. The goal is to prevent or minimize
pollution and responsibly manage the use of natural resources.
• Maintaining and Enhancing EHS Conditions
Beximco Pharma is dedicated to providing, maintaining, and improving EHS conditions across all levels of its workplace. This involves
a holistic approach to create a safe and healthy environment for its employees.
• Training for EHS Implementation
The Company emphasizes the importance of imparting necessary training to its employees for the effective implementation of EHS-
related rules. This training is designed to improve safe working habits, attitude, and discipline among the workforce.
Annual Report 2022-23 | Environmental, Social and Governance | 51
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• Ensuring a Safe Working Environment
Beximco Pharma is committed to ensuring a safe working environment and providing the necessary support to prevent injuries,
safeguard employee health, and mitigate occupational hazards.
• Encouraging Personal Accountability
The Company fosters a culture of personal accountability among its associates. This involves encouraging and educating employees
to take individual responsibility and share ideas for protecting the environment and creating a safe and healthy workplace.
• Effective EHS Risk Management
Beximco Pharma is committed to managing EHS risks effectively. This includes actively seeking and acting upon meaningful
opportunities to reduce risks and continually improving its EHS performance.
Beximco Pharma’s EHS policy refl ects a comprehensive approach to workplace safety, environmental responsibility, and continual
improvement in EHS performance, underlining the company’s commitment to the well-being of its workforce and the broader
community.
The policy is implemented through a comprehensive EHS Management System, overseen by governance that involves all levels of the
Company. Our performance is monitored and regularly reviewed to ensure that our standards of conduct meet our expectations, and
that the policy continues to be of value to our business as well as stakeholders.
• Compliance to Laws and Regulations
Our EHS operation is governed by the following Acts, Rules and Standards:
• Environmental Conservation Act, 1995
• Environmental Conservation Rules, 2023
• Solid Waste Management Rules, 2021
• Air Emission Control Rules, 2022
• ISO 14001:2015-Environmental Management System
• Bangladesh National Building Code, 2021
• Fire Prevention and Extinction Act, 2003
• Fire Prevention and Extinction Rules, 2014
• Bangladesh Explosive Act, 1995
• The Boiler Act, 1923
• Pressure Vessel Rules, 1995
• Occupational Health and Safety Administration
• ISO 45001:2018-Occupational Health and Safety
Management System
• Bangladesh Labor Law, 2006
• Bangladesh Labor Rules, 2015
We actively comply with relevant government regulations and industry standards. All of our manufacturing facilities have certifi cation
and clearance from the appropriate authorities.
52 | Environmental, Social and Governance | Annual Report 2022-23
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Environmental Sustainability Measures
Solid And Liquid Waste Managemnet
The solid waste generated from the manufacturing operation is appropriately managed complying with 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 system to ensure zero discharge of hazardous solid
waste to the environment that may harm the surrounding ecological system.
Beximco Pharma has its own incineration plant, having a capacity of 250 kg per hour depending on calorifi c value of the waste. The
quality of gas discharged after purifi cation by the scrubber system from the incinerator is well within acceptable standard set by the
Department of Environment (DoE).
Waste is burned in the primary chamber at 800o C. Gaseous emissions evolved from the primary chamber are burned in the secondary
chamber at 1200o C to 1400o C. The height of the chimney is more than 30 meters from ground level as per regulations. 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 a treatment device to purify the vapor before discharging into the atmosphere.
Quality of air emission from Incinerator, Boiler and Generator etc. are regularly monitored.
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 reagents
and water from the cooling tower. The Company has adequate control over managing liquid waste and has its own effl uent treatment
plant facilities (PLC-based Membrane Bioreactor technology). Capacity of Treatment Plant is 605 m3/day. Liquid waste is collected
in Equalization Tank and then transfer to chemical treatment. After chemical treatment water goes to Pre-Air Basin. The biological
treatment of the wastewater takes place in the Pre-Air Basin. This basin contains countless microorganisms, such as aerobic type
bacteria, that are able to break down the colloidal, organic contaminants dissolved in the wastewater. After that liquid waste passes to
membrane bioreactor tank. Membrane bioreactor (MBR) is a combination of membrane processes like microfi ltration or ultrafi ltration
with a biological wastewater treatment process, the activated sludge process. The pore size is 0.2 micron.
Treated water quality complies with the standard value of local regulation and its quality surpasses the municipal regulation’s
standard value.
Sl. No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Parameter
Appearance
pH
Temperature
Chemical Oxygen Demand (COD)
Total Dissolved Solids
Total Solids
Total Suspended Solids
Bio-Chemical Oxygen Demand (BOD, 5 days at 20o C)
Dissolved Oxygen (DO)
Chloride
Sulphate
Total Alkalinity
Arsenic
Phosphorus
Zinc
Manganese
Copper
Standard Specifi cation*
Actual Result
Colourless to Straw colour liquid
A Colourless liquid
6.0 to 9.0
NMT 40o C
NMT 200 ppm
NMT 2100 ppm
NMT 2250 ppm
NMT 150 ppm
NMT 30 ppm
4.5 to 8.0 ppm
NMT 600 ppm
NMT 200 ppm
NMT 300 ppm
NMT 0.2 ppm
NMT 8 ppm
NMT 5 ppm
NMT 2 ppm
NMT 0.5 ppm
7.60
27.6o C
76 ppm
807 ppm
888 ppm
81 ppm
11.67 ppm
5.3 ppm
168.50 ppm
60 ppm
124 ppm
0.05 ppm
0.02 ppm
0.05 ppm
0.05 ppm
0.2 ppm
*As per Environment Laws of Bangladesh
Annual Report 2022-23 | Environmental, Social and Governance | 53
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Gaseous Emission Management
Gaseous parameters in the surrounding areas, boiler outlet, generator outlet and incinerator chimney outlet are yearly monitored by
Dhaka University of Engineering and Technology (DUET), which are within acceptable standard set by the Department of Environment
(DoE).
Test Location
CO2 (%)
CO (mg/Nm3)
NOx (mg/Nm3)
SO2 (mg/Nm3)
Boiler Outlet
Standard value (Fuel: Gas fuel)
Boiler Outlet – 1 (Utility Building)
Boiler Outlet – 2 (Vision Building)
Generator
Standard value (Fuel: Gas fuel)
Power plant Building Generator
Building Chimney
Standard value (Fuel: Gas fuel)
Incinerator Building Chimney
NA
7
7.1
NA
6.2
NA
6.1
NA
0
9
NA
605
80
78
150
35
28
400
27
250
42
250
6
11
400
37
80
54
Ambient Air Emission Analysis report of the company also within acceptable standard set by the Department of Environment (DoE).
Test Location
Standard
Factory Area
CO2
(mg/m3)
N/A
0.0
CO
(mg/m3)
20
0.0025
NO2
(μg/m3)
NO
(μg/m3)
SO2
(μg/m3)
TVOC
(μg/m3)
PM10
(mg/m3)
SPM
(mg/m3)
80
0.0
N/A
0.0
80
0.0
N/A
8.0
150
61
N/A
53
** Air Pollution (Control) Rules, 2022 Bangladesh Gazette; Ambient Air Quality Standards (Schedule-1)
Noise and Odor
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 is
regularly disinfected and scrubbers are installed in the main header of the gas emission line. Latest measures of Noise level around
the factory is approximately 62 dBa against the standard of 75 dBa.
Earthing Pit and Earth Arrester
To eliminate the risk of electric shock, the metal body of all machinery is ‘earthed’ or ‘grounded,’ resulting in safer machine operation.
The corporation put lightning arresters in each high-rise structure to safeguard them against lightning strikes. When dangerous
lightning strikes, the arrester activates and directs the lightning to the earth, where it dissipates harmlessly.
54 | Environmental, Social and Governance | Annual Report 2022-23
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Green Initiatives
Paperless Quality Management System
Beximco Pharma has successfully installed and validated electronic quality management systems (EQMS) and electronic document
management systems (EDMS). Automation in quality management systems has made signifi cant steps toward a greener environment.
This solution has greatly decreased the demand for paper documentation by digitalizing and centralizing quality-related procedures.
This change to electronic document records has not only reduced paper waste but decreased the carbon footprint connected with
paper-based document preparation.
Saving Water And Energy
We endeavour to minimize the use of water and energy to help preserve these important resources. Below are some of our initiatives
in this directions:
• Re-use of water treated in effl uent treatment plant for gardening, car washing and as water scrubber of incinerator. We also reuse
wastewater of our WFI (water for injection) treatment plant for cleaning and washing.
• Sensor-controlled water taps installed at different areas of the factory to reduce social water consumption. Also replaced
conventional electrical bulb of the facility with LED bulb for lower energy consumption
• Installation of economizer in the exhaust line of the boiler to warm the feed water of the boiler. Also set up a condensate recovery
system to use condensate as a feed water of the boiler and thus saving energy
• Harvesting rainwater for use in different purposes in the factory.
• Using waste ethanol as fuel in secondary chamber of incinerator as well as in paint dilution.
• Installation of solar panels on the rooftop of Unit-3 building. Which generates 20kw of electricity.
• Day light saving is given consideration in the design of buildings. Our L&D center has been built using the steel sheets and glass
Observation of World Environment Day
Every year we plant trees in and around our facilities as a modest attempt to create a carbon sink zone. In observance of World
Environment Day on 5th June 2023, Beximco Pharma planted Wooden Rose tree (local Name: Kath Golap) in factory premises by
focusing on “Solutions to Plastic Pollution” under the campaign “Beat Plastic Pollution”. Indoor plants were also distributed among
the employees to create environmental awareness.
Annual Report 2022-23 | Environmental, Social and Governance | 55
Annual Report 2022-23 | Environmental, Social and Governance | 55
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Protection of Health and Industrial Hygiene
Fire Safety System
The Company has automated fi re hydrant system with a reservoir capacity of 2,30,000 liters of water to fi re emergencies of the whole
facility. All buildings including production, warehouse, laboratory, etc. are covered by fi re detection systems. Three fi re detectors such
as smoke, heat and multi detector are used to detect the parameter of fi re. This year the fi re detection system in our newly built Unit-3
facility has been fully activated, a total of 1710 numbers of detector have been installed inside the building. We also installed 301
number of fi re hydrant point including hose box and hose pipe around our factory area 0.6 bar water pressure is always maintained
in the hydrant point by the jockey pump.
All factory personnel are required to participate in compulsory training sessions covering the operation of fi refi ghting equipment and
basic fi rst aid procedures. Specifi cally, 46.68% of employees have received hands-on training in the practical use of fi re extinguishers
and fi re hydrants..
We execute mock fi re evacuation drills twice in a year in collaboration with Bangladesh Fire Service and the Civil Defence Department
to train our people how to evacuate from the workplace and respond in the event of any emergency.
We posted evacuation diagrams on each fl oor of every building for easy evacuation from the workplace during any emergency. Total
59 numbers of evacuation diagram are posted in the whole facility. We also give training to the respective employees on emergency
procedures and the use of their relevant evacuation diagram during emergency.
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 hazards by utilizing qualitative and quantitative analysis. Signifi cant risks associated with the
hazards are controlled by elimination, substitution, 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.
No excessive heating area is present in the factory premises. All manufacturing areas including the warehouse are temperature
controlled. Work permit is issued from EHS personnel for any non-routine jobs such as hot work, work at height, confi ned/closed
vessel entry, etc. to work more safely. Identify potential hazards & control the risk and appropriate PPE are considered before starting
the non-routine job.
Smoking is prohibited in all our operational and manufacturing premises. Eating or drinking is not permitted in the manufacturing
areas and analytical labs where chemical exposures are possible. All employees are trained on different EHS issues including
fi refi ghting, personal protective equipment, Emergency exit, 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, Nutritionist etc. Employees can consult with 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 hospitals and clinics for handling emergencies. We have an ambulance to send patients to the hospitals
and clinics in emergency cases.
First aid boxes are provided to each department of every facility and total 82 are numbers of fi rst aid boxes are available at different
points of the facilities. Employees from every department undergo training in fi rst aid procedures and receive training in the Company’s
personal hygiene practices and general safety protocols.
56 | Environmental, Social and Governance | Annual Report 2022-23
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Celebration of National Occupational Health and Safety
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.
Company celebrates the National Occupational Health & Safety Day on April 28 to build awareness about the health and safety of
people at the workplace. This year also, we celebrated the day with festive mood with displays of banners, festoons etc. at different
places of the factory premise with the theme “Ensure Good Working Environment, Build Smart Bangladesh.”
Child Labor
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 2022-23 | Environmental, Social and Governance | 57
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Social
Human Resources
Work and Culture
We fi rmly acknowledge that our success hinges on the dedication and exceptional capabilities of our team members. Our devoted
and highly skilled workforce stands as the primary asset in the pursuit of mission, consistently occupying a central position in our
strategic approach. We fi rmly believe that the key to our transformation lies in empowering our personnel. We foster and nurture
a motivating workplace environment that empowers individuals and fuels their inspiration to perform at their best. Our workplace
has evolved into a tight-knit community of colleagues, where employees take pride in their roles, their teams, and our organization.
They enthusiastically celebrate their colleagues’ achievements and collaborate seamlessly across the Company. This unwavering
commitment to our people-centric culture truly sets Beximco Pharma apart from the rest.
Diversity, Equity, and Inclusion
At present, Beximco Pharma boasts a workforce exceeding 5,500 individuals. Within this dynamic team, we harness the skills and
knowledge of over 1,500 professionals spanning various disciplines such as pharmacists, chemists, physicians, biologists, engineers,
microbiologists, legal experts, MBAs, and dedicated researchers. Our team is a harmonious blend, exhibiting signifi cant diversity in
terms of educational backgrounds, age, experience, and gender. We are committed to recruiting individuals from a wide spectrum of
expertise, thereby enriching the collective strength of our workforce.
e
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9
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7
7
3
5
6
0
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2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
Our commitment to promoting gender diversity at Beximco Pharma is underscored by our proactive approach. When faced with
equally qualifi ed male and female candidates for a position, we prioritize the inclusion of female candidates. Currently, our workforce
comprises 222 full-time permanent female employees, holding positions across various levels within the organization, with two of
them contributing as members of the Company’s Management Committee. This dedication to fostering gender diversity is refl ected in
the steady increase in the number of female employees, rising from 138 as of June 30, 2018 to 222 as of June 30, 2023, spanning
all organizational levels. We remain dedicated to creating an inclusive and diverse workplace that refl ects the values of equality and
opportunity.
Talent Acquisition and Retention
At Beximco Pharma, our Human Resources policy is centered around the core principles of attracting, retaining, and fostering top-tier
talent within the industry. We are dedicated to achieving this by offering competitive compensation packages, comprehensive end-
of-service benefi ts, and abundant opportunities for career advancement within our organization.
58 | Environmental, Social and Governance | Annual Report 2022-23
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Additionally, we place a strong emphasis on upholding fairness and equity in our selection and recruitment processes. Our unwavering
commitment to inclusivity is refl ected in our strict non-discrimination policy, which ensures that candidates are evaluated solely
based on their qualifi cations and merits, without regard to factors such as gender, religion, faith, color, or nationality.
Annually, Beximco Pharma creates new opportunities for employment, and in the fi scal year 2022-23, we extended a warm welcome
to 746 individuals who joined our permanent workforce. This expansion resulted in the addition of a net of 273 skilled professionals,
which refl ects our dedication to assembling a team that plays a pivotal role in our shared success.
Training and Development
In the contemporary business landscape, characterized by intense competition and escalating complexity, the rapid pace of innovation,
digital advancements, and constant shifts in rules, regulations, and standards pose ongoing challenges. Consequently, the shelf life of
knowledge and skills has signifi cantly shortened. Acknowledging the critical need to ensure our employees are well-prepared to excel
in this dynamic and fast-paced work environment, learning and development have consistently maintained a paramount position in
Beximco Pharma’s priorities. Understanding that staying ahead requires continuous adaptation, we are committed to providing our
workforce with the necessary tools and resources to navigate and thrive amidst these evolving challenges.
Quality Control Circles
In pursuit of personal and organizational growth, Beximco Pharma actively promotes employee engagement in various developmental
activities. A noteworthy initiative in this endeavor is the establishment of Quality Control Circles (QCC), where dedicated team members
identify and solve challenges within their respective work areas. This initiative not only strengthens team bonds but also fosters
innovation and a sense of ownership among employees. The QCC team has successfully developed several improvement projects,
resulting in an estimated annual savings of approximately BDT 240 million.
Furthermore, Beximco Pharma encourages employees to actively participate in national and international quality conventions. The
Inhaler production team, in particular, achieved a remarkable feat by securing the fi rst position with a perfect score of 100% at
the National Quality Control Convention (NQCC). Taking their dedication to international platforms, the team also participated in
a convention held in Beijing, China, where they clinched the prestigious Gold Award. This recognition exemplifi es the unwavering
commitment and passion of our Quality Circle team in setting and maintaining exceptionally high standards. These achievements
serve as a testament to the continuous pursuit of excellence within Beximco Pharma.
Beximco Pharma’s participation in national and international quality convention:
Year
2019
2020
2021
2022
2023
No. of team
participated
3
1
3
4
14
Level
National
International
National
National
National
Award received
PLATINUM
Award received
GOLD
-
1
1
4
11
3
-
2
-
3
Specialized Training
In the fi scal year 2022-23, a total of 605 team members actively engaged in a comprehensive 8,754 man-hours of specialized
Annual Report 2022-23 | Environmental, Social and Governance | 59
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Hours of Training
2022-2023
2021-2022
2020-2021
2019-2020
6805
8613
5248
training. These learning experiences spanned a diverse array of subjects, encompassing areas such as 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 initiatives served as valuable
supplements to the ongoing customized programs provided by our dedicated training departments at both the factory and head offi ce
levels throughout the year. The commitment to continuous learning and development underscores our dedication to ensuring that our
team remains well-equipped and adaptable in the face of evolving challenges and opportunities.
Learning Management System (LMS)
Beximco Pharma has taken a signifi cant step towards enhancing employee development with the recent introduction of the Skillsoft
online Learning Management System. This platform is designed to facilitate the soft skills development of our workforce. Presently,
100 employees have been granted one-year access to the platform, resulting in a total of 466 hours dedicated to learning across
3,165 login sessions. This initiative refl ects our commitment to providing accessible and effective tools for continuous learning,
empowering our employees to refi ne and expand their soft skills for personal and professional growth.
Training on Manufacturing Excellence
Annually, Beximco Pharma undertakes a thorough analysis of the training needs for its factory-based employees to ensure they
acquire essential skills and stay abreast of industry updates. In the fi scal year 2022-23, we dedicated 1,128 hours to classroom
training, covering a spectrum of topics including manufacturing practices, documentation, validation, safety, and more. Safety training,
specifi cally, delved into personal protective equipment (PPE), fi re prevention, fi rst aid, and emergency procedures, with an extensively
trained emergency response team in place. Our commitment to excellence extends to cleanroom behavior training conducted every
three months for sterile product manufacturing. Additionally, we offer soft skills training, including leadership and communication,
and practical training on procedures and protocols, encompassing 1,468 SOPs, 945 STPs, 301 Protocols, and 53 GTPs. This training
extends to various categories, including new employees, auditors, and machine operators.
In the 2022-2023 period, Beximco Pharma welcomed 143 permanent employees and 283 contractual employees for factory-based
workstations, each undergoing a comprehensive training program covering basic Good Manufacturing Practices, safety procedures,
on-the-job training, and instruction on Standard Operating Procedures. Newly recruited team members also receive training in
essential soft skills, and upon successful completion of all mandatory modules, they are awarded certifi cates signifying their
readiness for their designated roles.
For in-house auditors, a rigorous training program, comprising both theoretical and practical components, precedes their roles.
Auditors undergo thorough training and examination processes to ensure their ability to conduct comprehensive inspections across
various areas, identifying potential weaknesses. This meticulous approach is vital in upholding the highest standards, consistently
ensuring product quality and patient safety.
60 | Environmental, Social and Governance | Annual Report 2022-23
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The operation of our advanced machines demands a high level of skill and expertise. To empower our employees with the indispensable
knowledge and profi ciency required to handle these sophisticated machines effectively and safely, we have instituted a rigorous and
comprehensive training program. This program includes a series of specialized courses and practical exercises, meticulously crafted
to guarantee that machine operators not only meet but exceed the stringent standards set by Beximco Pharma for the operation of our
state-of-the-art machinery. This commitment to ongoing training ensures that our workforce remains at the forefront of technological
advancements, promoting effi ciency, safety, and the overall excellence of our operations.
To gauge the effectiveness of our courses, we employ structured questionnaires that provide valuable insights into the learning
outcomes and overall impact. These assessments contribute to continuous improvement and refi nement of our training programs,
ensuring they align with the evolving needs of our workforce.
In addition, our commitment to quality training is underscored by the careful selection of trainers. Individuals with proven expertise in
their respective fi elds are chosen to lead sessions. Before taking on this role, our trainers undergo a comprehensive ‘Train the Trainer’
program, equipping them with the skills and methodologies necessary to effectively impart knowledge and facilitate a conducive
learning environment. This approach ensures that our training sessions are not only informative but also delivered by professionals
who are adept at transferring their knowledge to our workforce.
Corporate Events and CSR
Medicine Donation to UN
BPL donated medicines for the medical camp organized by UN Peace Keeping Unit in Mali.
Sponsoring JAAGO Foundation
An art competition for the underprivileged students
to promote environmental awareness.
Iftar for underprivileged students
Annual Report 2022-23 | Environmental, Social and Governance | 61
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Scholarship Award 2022–23
The management of Beximco Pharma handed over certifi cates, stipend money & laptops to the meritorious children
of the factory employees for the year 2022-23.
Observance of World Environment Day 2023
62 | Environmental, Social and Governance | Annual Report 2022-23
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Sponsoring Leadership
Summit
Beximco Pharma was one of
the Sponsors of the Bangladesh
Leadership Summit organized
by the Bangladesh Brand Forum
on November 05, 2022.
Scientifi c Symposium on Changing Landscape of
Lipid Management
Launching program of Atova EZ (Atorvastatin & Ezetimibe
combination) was arranged in association with Dept. of Cardiology,
Sylhet MAG Osmani Medical College in Sylhet on August 5, 2022.
The program included a scientifi c symposium with Prof. Dr.
Abdullah Al Shafi Majumder, Former Director & Professor, NICVD
as the keynote speaker. Renowned cardiologists, endocrinologists,
nephrologists, and potential medicine specialists from different
institutions of Sylhet were present as panel of experts.
Clinical Study Dissemination Session
Beximco Pharma sponsored the clinical study of BPL’s leading anti-hypertensive brand Bizoran (Olmesartan and Amlodipine)
conducted by the cardiology study group of Bangladesh. The observational study was conducted in different areas of
Bangladesh in which a total of 443 Bangladeshi adult patients with hypertension participated as the study population. The
study fi ndings have been published in the World Journal of Advanced Research and Reviews.
Annual Report 2022-23 | Environmental, Social and Governance | 63
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Celebrating World Lung Day September 25, 2022
Scientifi c Seminar on Updated Management of Asthma
5th International Endocrine
Conference of BESCON
Nervalin CR Scientifi c
Seminar
Scientifi c Session on
Analgesia in Childbirth
World Hypertension Day
World Diabetes Day
64 | Environmental, Social and Governance | Annual Report 2022-23
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World Asthma Day
Breast Cancer Awareness Month
World Mental Health Day
Annual Report 2022-23 | Environmental, Social and Governance | 65
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Annual Sales and Marketing Conference
The Annual Sales and Marketing Conference for the Acute Care division and Chronic Care division took placefrom March at
Cox’s Bazar. The conference was attended by the entire sales team, SBM department, and other associated departments.
Strategic Briefi ng Session, Dubai
The Director, Managers and Team leaders of SBM and Sales department of BPL attended a strategic briefi ng session in Dubai.
66 | Environmental, Social and Governance | Annual Report 2022-23
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National ASE Conference
The National Area Sales Executives Conference held at a resort in Dhaka.
CPhI 2022
Beximco Pharma’s stall at the CPhI 2022 held in Frankfurt, Germany.
Sales Conference in Kenya
Sales Conference of Sales Team of Kenya held in June 2023.
Annual Report 2022-23 | Environmental, Social and Governance | 67
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Vision 2030 Workshop
Beximco Pharmaceuticals organized a strategic workshop on ‘Vision 2030’ during December 02-03, 2022. All the senior
management of BPL along with Chief Operating Offi cer, Rabbur Reza, were present there to discuss the Company’s long-term
goals and expectations to create a globally competitive and prosperous company by 2030.
a
MasterControl Go Live operation
MasterControl,
renowned Quality
globally
Management System, was successfully implemented
in Beximco Pharma and Synovia Pharma within an
impressive four-month timeframe. This achievement
highlights the collaborative efforts of Beximco and
Synovia Teams, along with implementation partner
SeerPharma, and MasterControl.
68 | Environmental, Social and Governance | Annual Report 2022-23
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We strive to convert every possibility into a reality. We continue to develop capabilities
and build scale in order to meet the challenges of the future.
Annual Report 2022-23 | Environment, Social & Governance | 69
Annual Report 2022-23 | Environmental, Social and Governance | 69
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A S F Rahman
Chairman
Salman F Rahman MP
Vice Chairman
70 | Environmental, Social and Governance | Annual Report 2022-23
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Governance
Our Governance Structure
The Board
of
Directors
Audit
Committee
Nomination and
Remuneration
Committee
Executive
Committee
Management
Committee
Board Composition
Chairman
Vice Chairman
Managing Director
Other Directors
Independent Director
Annual Report 2022-23 | Environmental, Social and Governance | 71
Annual Report 2022-23 | Environmental, Social and Governance | 71
E
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Board and Board Committees
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 (NRC)
Dr. Md. Ibraheem Hosein Khan
Iqbal Ahmed
Osman Kaiser Chowdhury
Mohammad Asad Ullah, FCS
Chairman
Member
Member
Secretary
72 | Environmental, Social and Governance | Annual Report 2022-23
72 | Environmental, Social and Governance | Annual Report 2022-23
72 | Environmental, Social and Governance | Annual Report 2022-23
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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
Annual Report 2022-23 | Environmental, Social and Governance | 73
Annual Report 2022-23 | Environmental, Social and Governance | 73
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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 a member of the Board of Trustees of North South University Foundation, the fi rst private university in Bangladesh.
74 | Environmental, Social and Governance | Annual Report 2022-23
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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. He is a keen promoter of sports and is the Chairman of Abahani Ltd, the premier sporting club of the country. He holds a
degree from the University of Karachi.
Annual Report 2022-23 | Environmental, Social and Governance | 75
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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 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.
76 | Environmental, Social and Governance | Annual Report 2022-23
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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 with an illustrious career, culminating in her last position
as Additional Secretary in the Financial Institution Division of the Ministry of Finance. Having commenced
her civil service journey at an entry level, she progressively ascended to senior administrative and policy
roles. Throughout her career, Ms. Ahmed held signifi cant positions in various ministries, including Shipping,
Commerce, Home Affairs, and Fisheries & Livestock. She also served as a Director of Karmasangsthan Bank
for over fi ve years.
Demonstrating a stellar academic track record, Ms. Ahmed holds 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.
Ms. Quamrun Naher Ahmed is currently the Chairman of the National River Conservation Commission. She
also serves as a Board member of IFIC Bank Limited, IFIC Securities Ltd., and IFIC Money Transfer (UK) Ltd.
Her extensive experience, coupled with her academic and professional achievements, underscores her
valuable contributions to various sectors and institutions.
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 2022-23 | Environmental, Social and Governance | 77
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Mamtaz Uddin Ahmed
Independent Director
Professor Mamtaz Uddin Ahmed is the Treasurer of the University of Dhaka and Chairman of the Bureau
of Business Research. He has over 36 years of teaching experience at university level and retired as
a professor from the Department of Accounting and Information Systems, University of Dhaka in March
2023. Prof. Ahmed is an experienced board member. Besides Beximco Pharma and Nuvista Pharma,
he is a Director of Ashuganj Power Station Company Ltd. His previous Board positions include Director
of Chittagong Stock Exchange Ltd., Dhaka Stock Exchange Ltd., and Alhaj Textile Mills Ltd. Additionally,
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). He obtained his Bachelor and
Masters in Accounting from the University of Dhaka. He is a Fellow Member of the Institute of Cost and
Management Accountants of Bangladesh.
Dr. Md. Ibraheem Hosein Khan
Independent Director
Dr. Md. Ibraheem Hosein Khan, a retired civil servant, concluded his distinguished career as the Secretary
at the Ministry of Cultural Affairs within the Government of Bangladesh. His service to the Bangladesh
Government included tenures in various departments, such as the Prime Minister’s Offi ce, Ministry of
Land, and Ministry of Cultural Affairs. Notably, Dr. Khan also assumed the role of Administrator for the
Dhaka South City Corporation. Academically, Dr. Khan holds a PhD from Jahangirnagar University in Dhaka.
His educational journey includes two master’s and two bachelor’s degrees obtained from institutions in
Bangladesh, Australia, and the United Kingdom. In addition to his notable government career, Dr. Khan
currently serves as the Vice-Chairman of Fareast Islami Life Insurance Company Limited, a listed company
on the Dhaka and Chittagong Stock Exchanges. His extensive experience and academic background
underscore his valuable contributions to both public administration and the corporate sector.
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 is currently the president of
ICSB for the term 2022-25 and held similar position on four previous terms. He is the only member of ICSB
to receive gold medal twice for his outstanding contribution to the chartered secretarial profession. He is
also a member of the board of directors of Bangladesh Institute of Capital Market (BICM). Mr. Mohammad
Asad Ullah is a widely experienced person with long career in Company Secretarial functions.
78 | Environmental, Social and Governance | Annual Report 2022-23
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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 seasoned fi nance professional with extensive experience in corporate
fi nance, restructuring, mergers and acquisitions, project management, and supply chain and operations
management. Commencing his career as a Management Trainee at Beximco Group in 1990, he has held
diverse roles within the group, demonstrating his versatility. In 2009, he assumed the position of Chief
Financial Offi cer at Beximco Pharma. Additionally, Mr. Nawaz serves as a Director for Nuvista Pharma Ltd.,
Synovia Pharma PLC, and Beximco Pharma API Limited – all subsidiary companies of Beximco Pharma.
He is also a Director of Fareast Islami Life Insurance Company Limited and Usmania Glass Sheet Factory
Limited, both listed on the Dhaka and Chittagong Stock Exchanges.
Mr. Nawaz is a qualifi ed Cost and Management Accountant (CMA) from the Institute of Cost and Management
Accountants of Bangladesh, currently a Fellow Member of the Institute. Furthermore, he earned an MBA
from the Institute of Business Administration at the 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 2022-23 | Environmental, Social and Governance | 79
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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
80 | Environmental, Social and Governance | Annual Report 2022-23
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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 2022-23 | Environmental, Social and Governance | 81
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Chairman’s Statement
A S F Rahman
Chairman
Dear Shareholders,
Amidst enduring challenges stemming from the ongoing Ukraine war and struggling global economy in the post covid period,
Bangladesh economy passed through a challenging year marked with hefty devaluation of Taka against US dollar, a decrease in
foreign currency reserves, a signifi cant rise in energy costs and elevated domestic infl ation. The persistent macroeconomic challenges
experienced throughout the reporting period, which are still ongoing, made FY 2022-23 exceptionally demanding. I am delighted to
announce that despite the formidable headwinds and tough trading conditions, we concluded the year with noteworthy progress,
showcasing our resilience and capacity to endure.
Upon reviewing the reports from the Directors and the Managing Director, you will note Beximco Pharma continued its growth
82 | Statements and Reports | Annual Report 2022-23
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momentum in sales with an impressive 13.3% YoY increase driven primarily by strong performance in the domestic market. Alongside
the sales, the Company recorded a 4.9% growth in its operating profi t. The remarkable increase in the top line, however, had a
marginal impact on the operating profi t margin. This was primarily attributed to a decrease in the gross margin, mainly stemming
from currency devaluation and infl ation. Additionally, after-tax net profi t declined largely because of the absence of a one-off income
from vaccine distribution in the reporting period on completion of the contract.
The Company fortifi ed its position in the domestic market, introduced numerous new products, and expanded its footprint in overseas
markets through increased approvals and registrations. The subsidiary, Nuvista Pharma, sustained positive sales momentum and
maintained healthy progress. During the year, we successfully completed the integration of Synovia Pharma. We restructured its
business and operating model to further expand and grow this important subsidiary. We have already seen the benefi t of our efforts.
Synovia Pharma, excelled in product launches, expanded its market research, and achieved remarkable sales growth during the year.
Overall, these achievements underscore the Company’s resilience and success in navigating a complex business landscape.
I am pleased to declare that, in line with the Company’s consistent track record of dividend payments, the Board of Directors has
proposed a 35% cash dividend for the fi nancial year 2022-23, mirroring the rate of dividend of the preceding year. This decision
not only reaffi rms our commitment to providing returns to our shareholders but also underscores the robustness of our fi nancial
performance.
As we present our operational and fi nancial progress to date, we acknowledge the macroeconomic challenges affecting the global
landscape. At national level, concerns include high infl ation, depleting foreign currency reserves, the depreciation of the Taka, and the
political uncertainty surrounding the upcoming 2024 election. Nevertheless, we fi nd relief in the government’s ongoing commitment
to prioritizing the manufacturing sector, particularly the pharmaceuticals and agriculture. Our ongoing focus, as always, remains on
meeting the targets for the year and striving to surpass them, despite the challenges posed by the broader economic landscape.
The Board has two important committees, namely the Audit Committee and the Nomination and Remuneration Committee (NRC).
Mr. Mamtaz Uddin Ahmed, the Chairman of the Audit Committee and an Independent Director of the Board, has completed his three-
year term. During his tenure, he played a vital role in discharge of the Board’s oversight function particularly in the area fi nancial
accounting and reporting. The Board of Directors has recommended his re-appointment as Independent Director for another three-
year term. Other members of the Audit Committee and the NRC including its Chairman Dr. Md. Ibraheem Hosein Khan 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.
I continue to be immensely impressed with the dedication, commitment and skills of our people. It is their efforts that drive the
business forward, delivering an excellent performance and strong growth across our business. I thankfully acknowledge their
contribution to the Company.
We are grateful to our shareholders for extending, at all times, their invaluable support to the Company. I also express my gratitude
to all our stakeholders particularly the doctors and other healthcare professionals, regulators, bankers, suppliers and the business
partners for their continued co-operation. The success we have achieved so far was only possible because of the collective efforts
of all concerned.
Wishing you all a life fi lled with happiness and good health.
Thanking you
A S F Rahman
Chairman
Annual Report 2022-23 | Statements and Reports | 83
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Report of the Managing Director
The FY 2022-2023 has brought forth considerable economic struggles, largely stemming from global events. Just as the world was
beginning to recover from the outcome of the COVID-19 pandemic, the Ukraine-Russia confl ict infl icted severe strain on the global
economy. This was marked by substantial trade disruptions and a surge in infl ationary pressures. Since the beginning of the war,
Bangladesh has experienced a signifi cant devaluation of the Taka accompanied by a signifi cant depletion of the foreign exchange
reserves. The world is projected to experience a slowdown in growth due to rising interest rates and the consequences of geopolitical
disruptions, which have triggered widespread economic turmoil.
According to IQVIA, the pharmaceutical industry in Bangladesh continues to grow at a double-digit rate of 15.29% with a value of
BDT 300 billion. The countries in the Asia-Pacifi c region will experience substantial volume growth of more than 10% by 2027. While
the global pharmaceutical industry’s current value stands at around $1.48 trillion, it is forecasted to see a CAGR of 3-6%, ultimately
reaching a market size of approximately $1.9 trillion in 2027. The global generic medicines market was valued at approximately $400
billion in 2022 maintaining a stable growth rate of 6.1%, and it is projected to contribute an additional $12 billion in growth by 2027.
This can be attributed to the increasing number of ANDA approvals and the launch of generic medications.
Despite facing the challenges, Beximco Pharma has managed to maintain a healthy double-digit growth. The ongoing economic
instability has had a signifi cant impact on the exchange rate, particularly concerning the US dollar and high infl ation leading to
a substantial increase in the costs associated with production and operations. Given that Bangladesh’s pharmaceutical industry
predominantly relies on imported raw materials, we are now tackling with substantial price hikes across all inputs, thus putting
immense pressure on our operational margins. Nevertheless, we responded to these diffi culties with coordinated efforts from every
functions across the Company. We engaged in continuous negotiations with our partners and service providers to mitigate the effects
of rising prices. Additionally, we implemented immediate cost control measures, streamlined our processes and resource allocations,
and made prudent procurement decisions where applicable.
During the period 2022-23, we launched 14 new generics in 23 different presentations in the domestic market, with Mulina (Lefamulin),
an anti-infective drug, being introduced for the fi rst time in Bangladesh. Additionally, we received a total of 33 new registrations of
19 generics (23 presentations) in 17 countries. This strategic approach enabled us to maintain a steady revenue stream even during
periods of economic uncertainty. I am pleased to share that during the fi rst quarter of 2023-24, Beximco Pharma launched 15 new
generics in 22 presentations, which included 10 fi rst time launches in Bangladesh.
Forecasts concerning therapeutic areas with the highest projected spending in 2027 include oncology, immunology, and anti-diabetic
interventions, followed by cardiovascular treatments. During this period, our anti-diabetic, cardiovascular and musculoskeletal
therapeutic groups performed very well, maintaining steady growth of 22.2%,16.5% and 23.3%, respectively. We continued to lead in
the CVS and analgesic markets in Bangladesh, while also being a major contributor to the growth of the anti-asthma & COPD market.
Furthermore, our antiulcerant brand, REMMO, achieved 100 crore sales in Bangladesh with a growth of 39.7% thus, becoming our
fi fth brand to attain this achievement.
We focused on optimizing operations to ensure cost-effective production and timely delivery to uphold our quality service. The
collective synergy among all departments culminated in the prestigious National Export Award (Gold) 2020-21 being awarded to
Beximco Pharma for the eighth time, a testament to the remarkable commitment and diligence of our entire workforce. Furthermore,
we also received the Global Generics & Biosimilars (GGB) Awards 2022 in the category ‘Acquisition of the Year’ along with the ICSB’s
Corporate Governance Award (Gold) 2022 and National Productivity, Quality Excellence Award 2021.
In the coming years, one of the top uncertainties lies in the potential impact of economic variables on the fi scal strategies of nations
and the possible shifts in healthcare and pharmaceutical expenditure policies. I wish to convey my unwavering commitment to the
promising future of our Company, even as we navigate through the volatile landscape of economic ambiguities. These are, without
a doubt, testing times, yet it is precisely in moments of adversity that opportunities reveal themselves. The global demand for
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cost-effective healthcare solutions continues to rise, and the signifi cance of our role in supplying vital medicines to millions across
the globe has never been more profound. We are proactively mitigating risks, broadening our supply chains, and optimizing our
operations to withstand these challenges. As we persistently explore new markets and opportunities, we remain fi rmly dedicated to
our core values. United as a team, we possess the capacity to conquer the obstacles that lie ahead, emerge more robustly, and steer
our company towards enduring growth and prosperity.
Thank you for your continued support.
Nazmul Hassan MP
Managing Director
100
Crore Brand
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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 2023
along with the report of the auditors thereon.
General Economic Overview
Bangladesh impacted by the global economic crisis resulting from the Ukraine war, experienced further challenges throughout the
fi scal period 2022-23, contributing to the ongoing destabilization of its macroeconomic landscape. The country was grappled with
noteworthy surge in infl ation, reaching its peak at 9.94 percent in May and concluding the year at 9.74 percent, a considerable rise
from the previous year’s 7.56 percent. This elevated infl ation exerted substantial pressure on real income, purchasing power, and
the overall cost of living in Bangladesh. The depletion of the foreign exchange reserve to USD 24.75 billion as of June 30, 2023, from
the previous year’s USD 41.83 billion coupled with a substantial gap between foreign currency earnings and expenses, resulted in
highly volatile exchange rates throughout the year. The Bangladeshi Taka continued to depreciate against the US dollar, reaching
BDT 109.50 against the US dollar as of June 30, 2023, marking a 17 percent increase from the previous year’s rate of BDT 93.5. In
response to these challenges, the central bank initiated control measures, including restrictions on imports, particularly luxury and
non-essential items. While these actions contributed to a reduction in the trade defi cit, with import payments falling by 15.76 percent
to USD 69.49 billion in FY 2022-23, down from USD 75.4 billion of the previous year, the central bank’s efforts to stabilize the market
saw limited success. The dollar crisis has posed signifi cant challenges for businesses. The government also took up several fi scal
and monetary measures to tame infl ation.
Despite economic headwinds, Bangladesh managed to achieve 6.0 percent growth in the FY 2022-23, slightly behind expected
6.5 percent. Anticipating persistent challenges, the World Bank projects Bangladesh’s growth to be 5.6 percent in FY 2023-24,
accompanied by 9 percent average infl ation. It foresees a re-acceleration of Bangladesh’s growth in FY 2024-25 as infl ationary
pressures ease, external conditions improve, and reform implementation gains momentum.
For several years, Bangladesh maintained a 9 percent interest rate cap on bank lending. However, Bangladesh Bank has recently
introduced a variable interest rate framework. Under this new policy, the interest rates on corporate borrowing are determined by
adding a 3.75 percent premium to the six-month moving average treasury bill rate. This shift in lending policy increased the cost of
borrowing which is expected to rise further. Additionally, the surge in benchmark rates for foreign loans like SOFR and EURIBOR adds
to the challenges, making overseas borrowing more expensive.
Legal and Regulatory Environment
The government’s continued support for the pharmaceutical sector provides a glimmer of relief for the industry. Addressing the
industry’s plea for price adjustments on controlled products, the regulatory authority approved upward adjustments for selected
items, and these changes took effect from July 2022. The legal and regulatory environment, especially those affecting businesses
and industries, has remained largely unchanged. Notably, Bangladesh has recently implemented a new Income Tax law with no
signifi cant change affecting the pharmaceutical industry.
Review of Financial Performance
Amidst challenging market conditions, Beximco Pharma achieved a remarkable 13.3% growth in consolidated sales to reach at
Taka 39,266.7 million from Taka 34,669.2 million of prior year. Sales in the domestic market increased by an impressive 14.1%,
predominantly from the organic growth of business, further solidifying our position in the core business segment. We attained an
export revenue of Taka 2,763.2 million, a 2.9% up from the preceding year. The lower-than-expected export growth is attributed to
economic downturns, supply chain disruptions, and geopolitical crises. We had to either cancel or defer part of our export orders
considering economic, forex, and political crisis in some our export destinations.
Our consolidated gross profit rose 9.4% in FY 2022-23 to reach Taka 17,313.4 million. The Operating Profi t increased by 4.9% to
7,216.2 million as against 6,881.7 million of comparable prior period. The post-tax profi t stands at Taka 4,524.5 million as against
Taka 4,998.6 million earned in 2021-22 representing 9.5% YoY decrease. The Gross profi t margin in 2022-23 declined to 44.1% from
45.6%. Record depreciation of domestic currency against its principal foreign currency US Dollar, soaring energy cost, high infl ation
contributed to the increase in the cost of production and operation. Planned cost management strategies, improved product mix,
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selective upward adjustment of product prices and leveraging effect of higher sales volume, however, has helped sustain the overall
gross profi t margin at this level. Although the Company managed to maintain its operating expenses at its current 26% level, Pre and
Post-tax Profi t has decreased primarily because, during the period July 2021 to June 2022, the Company earned a non-recurring pre-
tax income of Taka 619 million as Vaccine Distribution Fee under a contractual agreement. As this particular contract has concluded,
there has been no income from this source in the current reporting period. This along with the lower gross margin from escalating
costs as aforesaid, have impacted the profi t of the Company for the period under review.
Sales and Profi t Snapshot
Sales Revenue
Gross Profi t
Operating Profi t
Pre-Tax Profi t
Net Profi t after Tax
Earnings Per Share (Tk.)
2022-23
39,267
17,313
7,216
6,069
4,524
10.34
2021-22
34,669
15,820
6,882
6,687
4,999
11.48
Amount in Million Taka
Growth
13.3%
9.4%
4.9%
-9.2%
-9.5%
-9.9%
Consolidated collection of cash from revenue and other sources increased by 9.1% to Taka 39,440.2 million. Net cash generated from
Operating Activities rose by 16.7% to Taka 6,084.8 million from Taka 5,214.2 million. The net Operating Cashfl ow per Share increased
to Taka 13.64 from Taka 11.69 of prior year. The Company used cash of Taka 2,410.8 million for acquisition of property, plant and
equipment compared to TK 2,815.2 million of previous year. Long-term borrowing of Taka 1,763.2 million and short term borrowing
of Taka 229.3 million was repaid during the year.
Continuity of Other Income
The Company reports Cash Incentives on exports on submission of claims fulfilling the eligibility criteria. Claims for export incentives
are to be made after 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 financials.
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 fluctuation of exchanges rates between Taka and its counterpart currency.
The Company generated dividend income totalling Taka 41.9 million, with Taka 40 million stemming from a subsidiary, which was
subsequently eliminated in the consolidated statement of profi t and loss. The residual dividend income of Taka 1.9 million has been
accounted for within the category of other income. It is important to note that future dividend income is contingent upon the earnings
of the respective companies and their decisions to declare dividends.
Other items included under the head Other Income are either non-recurring or not material or inherent to the normal business
operation.
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.
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Risks Related to 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.
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
5,635
Profi t Brought Forward
Profi t Available for Appropriation
Proposed Dividend:
Cash Dividend
Profi t Carried Forward
25,901,734
30,495,378
(1,561,392)
28,933,986
Amount in Taka’000
BPL (Stand-alone)
2022-23
4,588,009
2021-22
5,161,344
6,358
22,295,424
27,463,126
(1,561,392)
25,901,734
Dividend
The Board of Directors recommends 35% Cash Dividend i.e. Tk. 3.50 per share for the year ended 30 June 2023 for onward approval
at the Annual General Meeting. The Company has declared no interim dividend during the year.
Contribution to National Exchequer
In 2022-23, the Company contributed BDT 9,215 million to the Government exchequer as Value Added Tax (VAT), Supplementary Duty
(SD), Corporate Tax and Custom Duty. This represents an increase of BDT 1186.9 million over the last year.
Risks and Concerns
Enterprises are susceptible to risks stemming from both internal and external sources. Just like any other business or industry,
Beximco Pharma, operating in a dynamic and competitive market, faces exposure to risks that can impact its operations. Disruptive
supply chains caused by the war in Ukraine on a global scale and rising infl ation, heightened interest rates, volatile foreign exchange
markets, and depleting foreign exchange reserves in the domestic context have presented the business with increased challenges
and uncertainties. The unpredictable and uncontrollable nature of these challenges underscores the need for robust risk management.
Beximco Pharma has in place comprehensive policies and procedures across functional, operational, and strategic levels to effectively
manage and mitigate risks. Our experienced and capable executive team diligently identifi es, assesses, and addresses a wide
spectrum of risks that have the potential to impact our operational and fi nancial objectives. The Company’s Board and management
have a successful track record of continuously monitoring and reviewing risks over the years. Beximco Pharma proactively employs
appropriate mitigation measures to prevent, eliminate, or reduce risks based on their nature and severity. While the Company has
established a vigilant system and well-defi ned procedures to address risks stemming from both internal and external sources, there
remain uncertainties beyond the Company’s control that could infl uence its goals.
Economic Risks
The pharmaceutical industry in Bangladesh primarily thrives on individual private spending, a factor closely linked to the country’s
economic progress and the resulting enhancement of people’s purchasing power. Any downturn in economic growth or a surge in
infl ation could, akin to other industries, have repercussions on the future demand for pharmaceuticals. Additionally, global economic
instability can exert an infl uence on the sector, potentially affecting its growth and profi tability.
Bangladesh, much like numerous other nations, presently grapples with macroeconomic challenges, including high infl ation,
depreciation of the local currency, and sluggish economic growth. The government has introduced various measures to address
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these issues. Despite these challenges, Bangladesh has consistently achieved signifi cant economic progress in recent years, leading
to marked improvements across various socio-economic indicators. It is anticipated that this positive trend will persist in the near
future, enabling the country to overcome its current crisis.
Furthermore, Bangladesh is on track to attain middle-income country status by 2026. This achievement is expected to bring about
enhancements in the standard of living, education, and increased health awareness, buoyed by augmented purchasing power.
Consequently, the demand for healthcare products is likely to rise signifi cantly in the coming years.
Market Risks
Market risks primarily arise from economic and market conditions, encompassing the Company’s vulnerability to various economic
and market variables. Among the key market risks are Interest Rate risk and Foreign Exchange risk. In Bangladesh, after a prolonged
period of adhering to an interest rate cap, there has been a shift back to a variable interest rate model, determined by a fi xed
premium over a six-month weighted average interest rate on treasury bills. The upward trajectory of treasury bill rates has led
to an increase in borrowing costs, with the potential for further escalation contingent on the money market situation. Moreover,
international benchmark rates, such as Euribor and SOFR, have exhibited a pronounced upward trend during the reporting period,
persisting at elevated levels. The Company faces the prospect of rising borrowing costs due to both the domestic and international
trends in interest rates. Despite these challenges, the Company is actively working to minimize its reliance on borrowings, thereby
mitigating its exposure to this facet of market risks.
Concurrently, Bangladesh has experienced unsettling volatility in foreign exchange rates, attributed to an unfavorable gap between
foreign exchange infl ows and outfl ows, resulting in a substantial depletion of the country’s foreign exchange reserve and the
depreciation of the Taka. The heightened volatility in forex markets has amplifi ed the Company’s raw material costs in Taka terms,
exerting a modest impact on its profi t margin. While the Company partially hedges its exposure to forex risks through export proceeds
earned in foreign currency, the absence of an active derivative market in the country exposes it to residual foreign exchange obligations.
A detailed exploration of the Company’s exposure to these risks and its corresponding risk mitigation strategies can be found in Note
Number 51.03 of the Financial Statements.
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 profitability of the company. Moreover, disruptions in the supply chain network or situation like recent
pandemic may also make the availability of materials difficult 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 influence 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 a few of the APIs and the Company is strengthening its API manufacturing capacity.
Operational Risks
Operational risks are the probability of failure to meet business targets due to disruptions in business operations, manufacturing
shutdown, production failure including challenges associated with equipment malfunctions, production errors, quality control issues,
and process ineffi ciencies. To prevent production disruptions, the Company conducts routine inspections and carries out regular
maintenance work. Additionally, the Company consistently invests in the balancing, modernization, rehabilitation, and expansion
(BMRE) of its facilities. The Company has established alternative power arrangements, including captive power and power from
the DESCO line, to ensure uninterrupted power supply to support production needs. Furthermore, the Company maintains a project
engineering department staffed with 200 engineers, responsible for regular maintenance and ensuring a continuous supply of utilities
to support manufacturing activities. The Company also suffi ciently insures against its plant machinery, equipment, and operating
assets as well as operating loss to be incurred due to disruption in the business.
Regulatory and Compliance Risks
Non-compliance with regulatory and compliance requirements will result in operational disruptions for the Company. Additionally, the
challenges posed by the ever-changing legal and regulatory landscape, combined with evolving societal demands with especially
from the environment and social fronts. Failure to adhere to these laws and regulations could lead to impairment of reputation,
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imposition of substantial fi nes or penalties, potential exposure to civil or criminal accountability. Beximco Pharma is subject to a
broad spectrum of laws and regulations, including, but not limited to, areas such as product safety and claims, trademarks, patents,
labor practices, environmental standards, fi re safety, competition regulations, employee welfare and safety, corporate governance,
reporting requirements related to stock market listing, employment regulations, and tax obligations, among others.
The Company actively complies with all applicable rules and regulations. Further, policies of the Government of Bangladesh are
supportive to the industry and pose no immediate risk.
Cybersecurity & IT Systems
In today’s interconnected digital landscape, incidents of cybersecurity breaches have become a paramount concern. These breaches
encompass unauthorized access, manipulation, or theft of sensitive information, often resulting in data compromise. In parallel, there
is a heightened risk of catastrophic loss within IT systems, jeopardizing the operational integrity of organizations. Like any other
organization Beximco Pharma is also exposed to a spectrum of cybersecurity risks, including sophisticated cyber-attacks, phishing
attempts, ransomware incidents, social engineering tactics, and potential vulnerabilities associated with third-party dependencies.
This dynamic landscape necessitates a comprehensive understanding and strategic approach to fortify our defenses against potential
breaches.
Beximco Pharma is committed to safeguarding its digital assets from the evolving threat landscape in cyberspace. Understanding
the pivotal role of cybersecurity in securing sensitive information, we maintain a vigilant and proactive stance. Driven by our
unwavering commitment to excellence, Beximco Pharma employs a robust cybersecurity strategy, incorporating best practices
in cybersecurity risk management. This includes cutting-edge technologies, ongoing employee training initiatives, and adaptive
strategies. Our comprehensive approach involves periodic vulnerability assessments, advanced threat detection systems, secure
network infrastructure, comprehensive testing, cybersecurity audits, business continuity planning, and robust disaster recovery
planning. These measures collectively ensure a resilient defense against emerging threats.
Our proactive stance, coupled with extensive employee training, empowers our team to swiftly identify, mitigate, and respond
effectively, safeguarding our digital assets and maintaining the trust of our stakeholders.
Manufacturing and Product Quality
Failure to adhere to quality regulations, guidelines, and internal/external standards throughout the product’s lifecycle, resulting in
potential safety concerns or product quality issues for consumers in the market.
The development and production of our products are intricate processes subject to stringent regulation by governmental health
authorities worldwide. Whether these products and their associated raw materials are manufactured in-house or by third-party
entities, it is imperative that we rigorously adhere to both regulatory mandates and our own exacting quality benchmarks. This
commitment is essential for delivering innovative therapies to patients facing unmet medical needs while safeguarding their well-
being. Non-compliance with regulatory obligations has previously led to, and may continue to result in, adverse consequences such
as warning letters, manufacturing suspensions, product seizures, legal injunctions, product recalls, diffi culties in obtaining product
approvals, or even the exclusion of individuals or entities from participation in these activities.
We have established and communicated clear quality standards that are implemented consistently across all our manufacturing
facilities. These standards are integrated into our standard operating procedures, ensuring that quality is a fundamental aspect of our
operations. To assess compliance with these standards, we conduct regular quality and GMP (good manufacturing practice) audits
across our manufacturing sites. Furthermore, we prioritize the quality of our incoming materials by conducting supplier audits and
inspections, particularly for critical suppliers and ingredients. To uphold our commitment to quality, we routinely track and report on
key performance indicators related to quality. This comprehensive approach ensures that our products consistently meet the highest
standards and deliver the quality our customers expect.
Retirement and Re-election of Directors
Mr. Salman Fazlur Rahman MP and Mr. Iqbal Ahmed, Directors of the Company retire by rotation as per Articles 126 and 127 of the
Articles of Association of the Company and being eligible, offer themselves for re-election.
Detailed bio-data of the Directors are available in the Directors’ Profi le section of this Annual Report.
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Re-appointment of the Independent Director
In compliance with to the provisions of Corporate Governance Code issued by Bangladesh Securities and Exchange Commission
(BSEC) dated June 03, 2018, the Board of Directors of the Company in its meeting held on 31st August 2023 re-appointed Prof.
Mamtaz Uddin Ahmed, FCMA as Independent Director of the Company for further period of 3 years effective from 31.08.2023, subject
to the approval of Shareholders in the Annual General Meeting.
Detailed bio-data of Prof. Mamtaz Uddin Ahmed is available in the Directors’ Profile section of this Annual Report.
Auditors
The existing Auditors, M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, BirUttam C. R. Datta Road, Dhaka-1205 who
were appointed as Auditors of the Company in the 46th Annual General Meeting of the Company has carried out the audit for the
year ended 30 June 2023. M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, BirUttam C.R. Datta Road, Dhaka-1205
The Auditors of the Company retires at this meeting and has expressed their willingness to continue in office for the year 2023-24.
The Board after due consideration recommends for the reappointment of M. J. Abedin & Co., Chartered Accountants as auditors for
the year 2023-24.
Related Party Disclosure
The Company has a number of transactions between its subsidiaries and other related parties. The transactions are carried out on an
arm’s length basis. The Audit Committee periodically reviews these transactions. The full disclosure of all related party transactions
is provided in the notes to the accounts.
Remuneration to Directors
All the Directors in the Board except the Managing Director are non-executive and receive no remuneration or benefits from the
Company other than the Board Meeting attendance fee. The salary and other perquisites paid to the Managing Director for his service
has been disclosed in the notes to the accounts.
Compensation Policy for Top Executives
The Company offers industry competitive compensation packages to the employees. Managing Director and all other senior
management team members are full-time employees of the Company and receive fixed monthly salary. They are also entitled to certain
perquisites as per the terms of their employment contract. Additionally, Beximco Pharma has defined contribution plan (Provident
Fund) and a defined benefit Plan (Gratuity) for employees irrespective of their positions. Company has a rigorous performance
evaluation and appraisal system linked to KPIs. Employee salary and allowance are reviewed once in every year and revised based on
individual performance. The Nomination and Remuneration Committee is entrusted with the responsibility of reviewing and appraising
the salary of the senior executives and making an appropriate recommendation to the board. Senior management is not entitled to
any performance linked variable incentive scheme other than the benefits of statutory Workers’ Profit Participation Fund.
Directors’ Statement on Financial Reports
Directors are pleased to report the following:
• The financial statements together with the notes thereon have been drawn up in conformity with the Companies Act, 1994 and
Securities and Exchange Rules, 2020. These statements present fairly the Company’s state of affairs, the result of its operations,
cash flow and changes in equity.
• Proper books of accounts of the Company have been maintained.
• Appropriate accounting policies have been consistently applied in preparation of the financial statements and that the accounting
estimates are based on reasonable and prudent judgment.
• The International Accounting Standards (IASs), International Financial Reporting Standards (IFRSs) have been followed in preparation
of the financial statements.
• Internal Control System is sound in design and has been effectively implemented and monitored.
• Interests of the minority shareholders have been duly protected.
• There is no significant doubt about the ability of the Company to continue as a going concern.
Declaration by CEO and CFO
Declaration by CEO and CFO on the Financial Statement of the Company is attached as Annexure- 1
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Key Operating and Financial Data
The summarized key operating and financial data for 2022-23 and immediately preceding five years is provided in Annexure- 2
Management Discussion and Analysis
Detailed discussion on the Operating and Financial performance of the Company along with other disclosures as required
under Corporate Governance Code issued by Bangladesh Securities and Exchange Commission through Notification No. BSEC/
CMRRCD/2006-158/207/Admin/80 dated June 3, 2018 has been separately reported by the Managing Director.
Board Meetings and Attendance
Twelve Board meetings were held during the year under review. The attendance records of the Directors are as follows:
Name of the Directors
Representation in the Board
Attendance in Board Meeting
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
12
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 Notification No.BSEC/CMRRCD/2006-158/207/
Admin/80, dated 3 June 2018, Report on “Corporate Governance Compliance” is provided in Annexure- 4.
On behalf of the Board,
A S F Rahman
Chairman
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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 2023
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 2023 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 2023 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
Managing Director
Mohammad Ali Nawaz
Chief Financial Offi cer
Annual Report 2022-23 | Statements and Reports | 97
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Annexure- 2
Key Operating and Financial Data
30 June 2023
30 June 2022
30 June 2021
30 June 2020
30 June 2019
30 June 2018
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
15,000,000
9,100,000
4,461,121
4,461,121
4,461,121
4,055,564
4,055,564
4,055,564
47,619,665
44,636,004
37,364,865
32,797,450
29,864,324
27,351,837
59,041,189
57,035,893
47,887,415
45,615,625
43,454,027
39,081,675
Net Asset Value (NAV) Per Share -Taka
Market Price Per Share
Price Earnings Ratio (Times)
97.91
146.2
14.14
91.01
154.60
13.47
83.01
177.3
15.43
80.12
69.20
8.78
72.96
83.50
11.16
66.78
93.90
15.02
Number of Shareholders
54,662
54,446
55,248
56,101
56,177
57,982
Foreign Investors
ICB including ICB Investors Account
Sponsors, General Public & Other
Institutions
62
843
69
873
71
871
71
882
77
881
90
879
53,757
53,504
54,306
55,148
55,219
57,013
Number of employees
5,706
5,377
5,104
4,755
4,489
4,256
Total Sales
Export Sales
Gross Profi t
Profi t Before Tax
Net Profi t
2022-23
2021-22
2020-21
2019-20
2018-19
2017-18
Taka in Thousand
39,266,662
34,669,172
29,493,574
25,611,947
22,816,630
17,716,717
2,763,247
2,685,096
3,124,001
2,751,790
2,502,633
1,476,978
17,313,372
15,820,210
13,923,502
11,899,100
10,620,343
8,285,979
6,068,769
6,686,945
6,377,548
4,653,440
3,946,065
3,361,334
4,524,468
4,998,628
5,165,750
3,544,483
3,040,403
2,532,654
EPS/Restated EPS- Taka
Net Operating Cash Flow Per Share
New Product Launched-numbers
Cash Dividend
Stock Dividend
10.34
13.64
14
35%
-
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
15%
-
12.50%
-
98 | Statements and Reports | Annual Report 2022-23
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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
14,345,757
965,206
1,308,505
9,058,888
9,080,095
14,657
-
-
-
-
-
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Annexure-4
Corporate Governance Compliance
Board of Directors (BOD)
Beximco Pharma has a diversifi ed and dynamic Board of Directors consisting of members from diverse age groups, professional
backgrounds, gender, and fi eld of expertise.
Board’s Size [number of Board members to be 5 – 20]
The Company appoints an adequate number of directors including independent directors to ensure the effi cient functioning of the
Board. Presently the Board of Directors of Beximco Pharma consists of 10 members.
Independent Directors (ID)
The Corporate Governance code requires that at least 1/5th of the Board members shall be the Independent Directors. Beximco
Pharma complies with the code. Presently the Board of Directors of Beximco Pharma consists of 2 Independent Directors out of a
total of 10 directors.
Qualification of Independent Director
Beximco Pharma’s Independent Directors fulfi l all qualifi cations set by the Corporate Governance Code. One of the Independent
Directors is a retired professor from Faculty of Business, University of Dhaka. Another Independent Director is a retired Secretary
lastly served in the Ministry of Cultural Affairs, Government of Bangladesh.
Duality of Chairperson of the Board and MD or CEO
As per Code of Corporate Governance, positions of Chairman of the Board and MD or CEO of the Company should be occupied by
different persons. In Beximco Pharma, Chairman of the Board is Mr. Ahmed Sohail Fasihur Rahman who is a non-executive director
and the leader of the Board. Mr. Nazmul Hassan is the Managing Director of the Company who is the leader of the Management. In
the absence of the Chairperson of the Board, the remaining members elect a chairperson among non-executive directors for that
Board’s meeting.
Inclusions in Directors’ Report to Shareholders
Directors’ Report to Shareholders have been furnished in page numbers from 90 to 96 of this Annual Report.
Meetings of the Board of Directors
Beximco Pharma conducts Board meetings as required by business proceedings and records the minutes of the meetings as per the
provisions of the relevant Bangladesh Secretarial Standards (BSS).
Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
Beximco Pharmaceuticals Limited places utmost signifi cance on the adherence to a Code of Conduct by its Chairperson, Board
members, and Chief Executive Offi cer (CEO). It includes their fi duciary duty to act in the best interests of the company, the disclosure
of any potential confl icts of interest, a commitment to openness and accountability, and compliance with all applicable laws and
regulations directed by the Nomination and Remuneration Committee (NRC), Bangladesh Secretarial Standards (BSS), Institute
of Chartered Secretaries of Bangladesh (ICSB). Beximco Pharmaceuticals Limited’s management practices adhere closely to the
organization’s commitment to ethical governance, stakeholder confi dence, and the assurance of the organization’s enduring success
within the pharmaceutical industry.
Governance of Board of Directors of Subsidiary Company
The Board of Directors of two subsidiary companies have been structed to align the composition of the Board of BPL. One of the
Independent directors of BPL has been appointed as a director of Synovia Pharma PLC and another Independent director is also a
member of the Board of Nuvista Pharma Ltd. Further, minutes of Board meetings of subsidiary companies are placed at following
Board meeting of Beximco Pharma for their review. Additionally, periodic accounts and fi nancial statements of subsidiary companies
are submitted in the meeting of Audit Committee of BPL for their review.
100 | Statements and Reports | Annual Report 2022-23
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Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal
Audit and Compliance (HIAC) and Company Secretary (CS)
Appointment and Duties of MD or CEO and CFO
Beximco Pharma has in place a Managing Director (MD), Chief Financial Offi cer (CFO), Chief Operating Offi cer (COO), Head of Internal
Audit and Compliance (HIAC), and a Company Secretary (CS). All of these positions are held by separate individuals who are not
holding executives in any other company except Company sectary also serves secretary of two other concerns (Beximco Limited and
Shinepukur Ceramics Limited) of Beximco Group. Moreover, Managing Director, CFO and COO are also members of the boards of
Nuvista Pharma Ltd. and Synovia Pharma PLC. All of these positions report to the Board of BPL, their appointments, responsibilities,
and performance under the full authority of the Board of Directors. They also attend the meetings of the Board of BPL except COO.
Duties of MD or CEO and CFO
The MD and the CFO review and certify fi nancial statements and their certifi cate is disclosed in the annual report of the Company
every year.
Board Committee
The Board has two important committees, namely the Audit Committee and the Nomination and Remuneration Committee (NRC):
Audit Committee (AC)
Beximco Pharma has an Audit Committee as a sub-committee of the Board. The Audit Committee is diligently fulfi lling its responsibilities
and functions in accordance with the expectations outlined in the Corporate Governance code. A dedicated section in the Annual
Report provides a comprehensive account of the Audit Committee’s activities, including details of the meetings conducted and the
agenda items deliberated upon throughout the year.
Nomination and Remuneration Committee (NRC)
Beximco Pharma has another sub-committee of the Board, namely the Nomination and Remuneration Committee (NRC). Comprising
three members, this committee operates in accordance with predefi ned terms of reference approved by the Board. It diligently
carries out its duties within the specifi ed scope of responsibilities. The Annual Report features a dedicated section that provides
comprehensive insights into the NRC’s activities, offering a detailed account of the meetings held and the agenda items deliberated
throughout the year.
External or Statutory Auditors
M. J. Abedin & Co. Chartered Accountants, external auditing fi rm for Beximco Pharmaceuticals Limited, is engaged to provide Audit
services only. The Company restricts its external auditors from providing any other services to prevent confl icts of interest and
ensures that neither Auditors nor their families hold shares in the Company. Auditors’ representatives remain present in the Annual
General Meeting.
Maintaining a website by the Company
The company maintains an offi cial website that is interconnected with the website of the stock exchanges.
This website is active and operational well in advance of the listing date, ensuring the timely disclosure of essential information as
mandated by the listing regulations of the respective stock exchange(s).
Reporting and Compliance of Corporate Governance
Beximco Pharma is committed to upholding the principles of the Code of Corporate Governance. The company’s adherence to
corporate governance standards undergoes thorough assessment and certifi cation by an independent professional fi rm, and the
compliance certifi cate is made accessible to stakeholders in the Annual Report.
Corporate Governance Compliance Report
As per condition No. 1(5)(xxvii) Status of compliance with the conditions imposed by the Commissions Notification No. BSEC/
CMRRCD/2006-158/207/Admin/80, dated 3 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969
Annual Report 2022-23 | Statements and Reports | 101
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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
(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
102 | Statements and Reports | Annual Report 2022-23
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
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Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
1(3)(b)(v)
Practicing advocate at least in the High Court Division of Bangladesh Supreme Court or a
CA/CMA/CFA/CCA/CPA or CS
1(3)(c)
1(3)(d)
1(4)
1(4)(a)
1(4)(b)
1(4)(c)
1(4)(d)
1(4)(e)
1(5)
1(5)(i)
Having at least 10 (ten) years of experiences in any 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 2022-23 | Statements and Reports | 103
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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
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.
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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
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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
-
No such IPO/RPO/
Right Issue occurred
during the year.
Annual Report 2022-23 | Statements and Reports | 105
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Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Complied
Not
Complied
Remarks
(if any)
-
-
-
-
-
-
-
-
Audit Committee
found no such issue
or activity.
No such instance
occurred during the
period.
No such instance
occurred during the
period.
No such instance
happened during the
period.
5(6)(a)(ii)(a)
Reporting on conflicts of interests
5(6)(a)(ii)(b)
Reporting on suspected/presumed fraud or irregularity or material defect in the internal
control system
5(6)(a)(ii)(c)
Reporting on suspected infringement of laws
5(6)(a)(ii)(d)
Reporting on any other matter to disclose immediately
5(6)(b)
Reporting to BSEC
5(7)
6
6(1)
6(1)(a)
6(1)(b)
6(1)(c)
6(2)
6(2)(a)
6(2)(b)
6(2)(c)
6(2)(d)
6(2)(e)
Reporting to the Shareholders and General Investors
Nomination and Remuneration Committee (NRC)
Responsibility to the Board of Directors
Shall have a NRC as a sub-committee of the Board
Assists the Board in formulation of the NRC policy
The Terms of Reference (ToR) of the NRC shall be clearly set forth in writing
Constitution of the NRC
At least three members including an Independent Director
All Committee members shall be non-executive directors
Members of the Committee shall be nominated and appointed by the Board
The Board reserve the authority to remove and appoint any member of the Committee
The Board shall 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)
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:
6(5)(b)(i)
6(5)(b)(i)(a)
Formulation of the nomination criteria and recommend a policy to the Board, relating to the
remuneration of the directors, top level executive, considering the following:
The level and composition of remuneration shall be reasonable and suffi cient to attract,
retain and motivate suitable directors
6(5)(b)(i)(b)
Clear relationship among remuneration, performance & benchmarks
-
-
-
-
-
√
√
√
√
√
√
√
√
-
-
√
√
√
√
√
√
√
-
√
√
√
√
√
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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
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
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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).
The Audit Committee of Beximco Pharma is a sub-committee of the Board with distinct Terms of Reference (ToR) developed conforming
to the Code of Corporate Governance. The Committee is responsible for ensuring that the fi nancial statements provide a true and fair
assessment of the Company’s condition and that a good monitoring mechanism inside the company is in place to ensure effective
corporate governance. The Audit Committee’s fundamental responsibilities includes, but not restricted to overseeing the fi nancial
reporting process, monitoring accounting policies and principles, monitoring internal control risk management procedures, reviewing
the statement of signifi cant related party transactions, reviewing potential confl ict of interests etc. As such, a competent audit
committee is important to ensure accounting and reporting transparency and promote good governance. 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
Review of Quarterly Financial Statements
The Committee held three meetings to review the interim financial reports of the Company and its subsidiaries prior to their onward
submission to the Board for approval. In each of the meetings, the Committee has thoroughly reviewed the fi nancial statements,
accounting policies, assumptions, materiality thresholds etc. for ensuring that the fi nancial statements provide a true and fair
assessment of the Company’s condition at that time. The Committee also held detailed discussion with the senior management on
various aspects of the financial statements to ensure accuracy, consistency and compliance of the reports in all material respects.
Management representatives present in the meeting, replied to the questions and queries and provided adequate explanations
on operational, financial, accounting and reporting matters discussed in the meeting. The Committee, wherever applicable, gave
necessary feedback and guidance in connection with reporting and disclosure.
Review of Audited Financial Statements
The Audit Committee held a meeting on October 16, 2023 to review the draft of the annual audited financial reports of the Company
and its subsidiaries prior to their submission to the Board of Directors for approval. All the members of the Audit Committee, the
CFO and other Senior members of the Accounting and Finance team as well as the Auditor of the Company attended the meeting.
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, 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 financial 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 financial statements. The
Committee also enquired about the deviations of earnings, some expenses, and cash fl ows of the period under review from the prior
year. The Management explained reasons to the satisfaction of the Committee.
Annual Report 2022-23 | Statements and Reports | 109
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The Committee also 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 financial statements as per IAS 24: ‘Related Party Disclosures’. The Committee
evaluated the report of the independent auditor on the annual financial statements and found no material audit observation that
warrants the Board’s attention.
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 2023 and found their performance meeting the standard. Based on the evaluation, the Committee
recommended the re-appointment of the existing auditor for the year 2023-24.
During the review period, the Committee also assessed the financial reporting process and the adequacy of the internal control
system of the Company and found them satisfactory. They noted that internal audit team enjoy full, free, and unrestricted access to
all activities, records, property. The Committee noted no material deviations or non-compliance or adverse audit finding that calls for
the board or shareholders’ attention.
Mamtaz Uddin Ahmed
Chairman
Audit Committee
110 | Statements and Reports | Annual Report 2022-23
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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
NRC held one meeting during the year under review with all the members of the Committee except Mr. Iqbal Ahmed attending. Mr. Md.
Ali Nawaz, Chief Financial Officer, Mr. Jamal Ahmed Choudhury, Director, Accounts & Finance and Mr. M A Arshad Bhuiyan, General
Manager, HRM also attended the meeting as representatives of the management on invitation. The meeting dealt with several agenda
including review of annual appraisal and compensation of employees, training activities and policies and review of the performance
of the retiring directors.
The meeting extensively deliberated on Beximco Pharma’s annual appraisal process and employee compensation policy. Mr. M A
Arshad Bhuiyan, General Manager, HRM, provided a detailed overview of the company’s appraisal procedures. He emphasized that
appraisals take into account various factors, including individual performance, achievement of Key Performance Indicators (KPIs),
supervisor assessments, and the employee’s potential. Annual fi nancial increments and promotions are directly tied to performance
outcomes.
Mr. Arshad conveyed that the Company considers infl ation rates and its fi nancial performance when determining the general
increment rate for salary adjustments. Notably, he mentioned that, in response to the prevailing high infl ationary conditions, the
management is contemplating a higher percentage of increment for employees with comparatively lower salaries, this year. The
Committee expressed appreciation of the Company’s appraisal process and endorsed the decision to offer a higher raise to the lower-
paid employees to address the impact of infl ation.
The Committee assessed the Company’s training initiatives. Mr. Arshad highlighted key training activities undertaken throughout
the year for employees at various levels. He reported to the Committee that, in order to foster cultural and organizational integration
among the different subsidiaries and Beximco Pharma, the Company orchestrated diverse training and team-building events,
involving employees from all three units. Additionally, he discussed several training and skill development programs such as Ignite,
Skillsoft, and Quality Control Cycle (QCC) implemented across the organization to enhance skills, effi ciency, and productivity. The
Committee was also briefed on the regular and specialized in-house training programs conducted throughout the year. Furthermore,
a substantial number of employees underwent external training in specialized fi elds both domestically and internationally. Upon
reviewing these initiatives, the Committee reached the conclusion that the current training activities and policies are well-crafted to
foster the development, retention, and attraction of talented human resources for the Company.
Annual Report 2022-23 | Statements and Reports | 111
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The Committee was informed that Mr. Salman F Rahman, Vice Chairman and Mr. Iqbal Ahmed, a Director of the Company are 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. In addition to these, the Committee also considered the proposal for re-appoint of Prof. Mamtaz Uddin Ahmed,
FCMA, an Independent Director of the Company, on completion of his three year term. It was informed that Prof. Mamtaz has given his
consent to act as an Independent Director for another term. The Committee acknowledged Prof. Mamtaz’s signifi cant contributions as
a member of the Board and as the Chairman of the Audit Committee. They expressed satisfaction with the important role he played
as an independent director. The Committee being satisfi ed forwarded the proposal to the Board for the reappointment of Prof Mamtaz
Uddin Ahmed as an independent director for another term.
112 | Statements and Reports | Annual Report 2022-23
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Investor Relations
Communication with Shareholders and Investors
Beximco Pharma concedes investors’ right to stay informed about the Company, including its operational and fi nancial outcomes
and other signifi cant details relevant to their investment choices. The country’s legislation and regulations outline the rights and
privileges of shareholders, along with the methods, timing, and channels for disseminating information to them. Shareholders and
investors receive regular updates on the Company’s activities through the disclosure of price-sensitive information, fi nancial reports,
interactions with top executives, and the Annual General Meeting (AGM). Important information is swiftly communicated via stock
exchanges and the Company’s website, and occasionally through print media and online platforms. Company’s policy on disclosing
price sensitive and other material information is available on the website.
The Company consistently adheres to all regulatory provisions and effectively communicates information in a timely manner. It
conducts its Annual General Meeting in accordance with the Companies Act, 1994, providing shareholders with a comprehensive
overview of the Company’s overall affairs. The AGM addresses specifi c agendas that require approval from shareholders. Interested
shareholders are encouraged to participate in discussions and inquire about the Company’s affairs. Additionally, Extraordinary General
Meetings (EGMs) are convened, when necessary, with board members and senior management present to respond to queries and
address shareholder concerns. Like prior year this year, the AGM is being conducted virtually through a digital platform.
The Company’s leaders meet with international investors to provide updates on the business. Local and international fund managers
and analysts also arrange meetings, both locally and abroad, with our senior management to understand the current and future
prospects of the Company. Several of the meetings during the year took place online.
The Company promptly shares all price-sensitive information with the market as soon as it becomes available, through stock
exchanges and its own offi cial website. In relevant situations, such information is also disseminated through print media and online
portals.
Beximco Pharma has a dedicated Company Secretarial Department with qualifi ed professionals responsible for regulatory secretarial
functions and addressing administrative inquiries from shareholders and investors. Additionally, there is an investor relations
team within the accounting and fi nance function to handle queries and information requests from investors, regulators, and other
stakeholders. Being the only Bangladeshi company listed on the Alternative Investment Market (AIM) of the London Stock Exchange,
Beximco Pharma adheres to AIM regulations. The company has engaged SPARK Advisory Partners Limited as the Nominated Advisor
(NOMAD), SP Angel Corporate Finance LLP as the designated Broker, and FTI Consulting LLP as the public relations agent. Analysts
from SP Angel publish reports on the company for the benefi t of investors.
Reporting to the Shareholders
The Company shares its fi nancial updates at multiple intervals throughout the year. Unaudited quarterly fi nancial statements are
published in condensed form at the end of each of the fi rst three quarters of the year. At the end of each fi nancial year, the Company
releases full-year audited fi nancial statements. To ensure widespread access, these fi nancial statements are shared on stock
exchanges.
In line with legal requirements, summarise versions are also made available in newspapers and online platforms. Additionally, the
Company compiles an annual report, a detailed document covering various aspects of its operations and fi nances, as well as other
necessary disclosures. All these reports and statements are easily accessible to the stakeholders through the Company’s website.
Annual Report 2022-23 | Statements and Reports | 113
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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
Website Communication
The Company maintains online presence through its comprehensive website at www.beximcopharma.com. This digital platform
serves as a repository of both historical narratives and up-to-date information pertaining to the Company and its operations. Carefully
structured to address the information needs of a diverse array of stakeholders, the website undergoes regular updates to ensure the
currency and relevance of its content.
Notably, the investor relations section of the website has undergone a recent transformation, introducing a reorganized layout aimed
at facilitating updated information for users to provide a more user-friendly experience, enabling stakeholders to navigate and extract
pertinent information effortlessly.
Beyond the wealth of information available on the website, the investors and other report users may contact the Company via its
designated contact means provided in the website for additional information or or personalized assistance.
114 | Statements and Reports | Annual Report 2022-23
www.beximcopharma.com/investors
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Five Year Dividend History
Cash Dividend
15%
15%
35%
35%
35%
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
* In addition to Cash, 10% Stock Dividend was declared in 2019-20
Stock Market Performance
Dhaka Stock Exchange (DSE)
Particulars
30 June 2023
30 June
2022
30 June
2021
30 June
2020
30 June
2019
Share Price- Dhaka
Share Price- AIM
BDT 146.2
GBP 0.355
BDT 154.6
BDT 177.3
BDT 69.2
BDT 83.5
GBP 0.705
GBP 0.860
GBP 0.355
GBP 0.389
Market Capitalization- Dhaka Price
BDT 65.22 bn
BDT 68.9bn
BDT 79.1bn
BDT 28.1bn
BDT 33.9bn
EPS- Taka
P/E Ratio (Dhaka Price)
Dividend (Cash)
Stock Dividend
10.34
14.13
35% (Proposed)
--
11.48
13.5
35%
--
11.49
15.4
35%
--
7.88
8.8
15%
10%
7.48
11.2
15%
-
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
Annual Report 2022-23 | Statements and Reports | 115
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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 official website. In compliance to this directive,
Beximco Pharmaceuticals Limited (“Beximco Pharma” or the “Company”) publishes this statement as a guiding framework for the
shareholders with regards to the Company’s Dividend Policy.
This statement provides a brief outline of the legal and regulatory provisions relating to dividend, key issues in dividend considerations
and the procedure for the declaration, approval and payment of dividend.
Relevant Laws and Regulations
Different legal and regulatory provisions have bearings on dividend decisions of the Company. The paragraphs below provide a brief
overview of the provisions relating to dividend:
Companies Act
The Companies Act 1994, the primary legislation regulating the affairs of a company, gives power to the directors to recommend
the dividend to be declared by the company which is to be approved by the shareholders in the Annual General Meeting (AGM). The
shareholders however, cannot approve any dividend more than what has been recommended by the directors. It also authorizes the
directors to pay from time to time, interim dividends to the shareholders if so appears to be justified by the profits of the company. The
directors may, before recommending any dividend, set aside out of the profits of the company, such sums as they deem appropriate,
as reserve or reserves which shall at the discretion of the directors, be applied for meeting contingencies, or for equalizing dividends
or for any other purpose of the company appropriate for utilization of such profits or may employ such profits in the business of the
company or otherwise as they think fit.
The law further provides that dividends are to be paid out of profits of the year or any other undistributed profits.
Listing Regulations of Stock Exchanges
There has been a number of listing regulations that have direct or indirect impact on dividend decisions of the company. Shares of a
company is traded under different trading categories depending on payment or non-payment of dividend by a company. According to
the regulations, a company shall be traded in the “Z Category” (a category with a longer trading settlement time and other restrictive
conditions) if it fails to declare cash dividend for two consecutive years. Moreover, a company may among other reasons, be de-listed
from the stock exchange if it fails to pay cash/stock dividend for a consecutive period of five years. The listing regulations also require
a company to declare in its annual general meeting the reasons, if any for partial or non-distribution of profits as dividend and the
plan for utilization of the undistributed profits if there be any.
116 | Statements and Reports | Annual Report 2022-23
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Income Tax Law
Bangladesh Income Tax law, provides for additional tax charges to a listed company that retains more than 70% of its net after- tax
profit earned in any year. According to the said provision if a company retains or transfers more than 70% of its after tax profit
to reserve or any other fund, an additional 10% tax shall be payable on such retained or transferred fund. Moreover, in order to
encourage cash dividend, the tax law requires that if in any income year, the stock dividend declared by a company exceeds the cash
dividend, an additional 10% tax shall be imposed on the whole amount of stock dividend declared or distributed.
Key Considerations in dividend decisions
The company shall endeavour to maintain a consistent dividend over the year with appropriate consideration of factors relevant to
such decisions. It is the Company’s practice to declare dividend on annual basis based on annual financial performance. However,
the Board may also declare interim dividend based on periodic financial results. Historically the Company declared dividend in either
cash or stock or in judicious combination of cash and stock. The company intends to pursue the same policy in future depending on
the operating and financial context prevailing at that time.
Multiple internal and external factors might affect Company’s dividend decisions. While recommending dividend the Board of directors
shall consider among others:
• Company’s current net earnings, accumulated distributable reserves/surplus and availability of free cash flow
• Potential growth opportunities and investment requirements; assessment of benefits of retention vs pay-out
• Legal and Regulatory compulsion and tax implication of retention and payout
• Any debt/loan covenants restricting dividend announcements
• Persuasion of a target capital structure
• Cost of external finance
• Policy on consistency of the dividend over reasonable and foreseeable future years
Additionally, the Board may consider other factors or circumstances to decide on distribution of dividend for a particular year.
Eligibility of shareholders for dividend
Dividend is declared on the face value of each Equity Share. Unless otherwise stated, all holders of Equity Share and GDR (Global
Depository Receipts) whose names appear on the registrar of the Company on the Record Date declared by the Company for
entitlement of dividend, are eligible to get the dividend.
Timing of Dividend Announcement and Payment
Annual dividend decision is taken in the Board meeting to be held within 120 days from the date of closing of the financial year. Such
decisions are based on the results of the audited financial statements. The dividend recommendations made by the directors are
notified to the shareholders through stock exchanges, website and public announcements.
Dividend recommended by the Directors are to be placed in the Annual General meeting of the Company for the Shareholders’
approval. Dividend are transferred to the respective shareholders’ account within 30 days from the date of its approval. Interim
Dividend if any declared by the Company, are paid within 30 days from the Record Date fixed by the Company for the entitlement of
such dividend.
Policy Review and Amendment
Apart from mandatory revision, modification or amendment as necessitated by the legal and regulatory requirements, the company
shall review this policy on periodic basis and make necessary revision or amendment to keep the policy relevant and up to date. The
Board of Directors of the company shall approve the revision and/or amendment as it deems fit.
Disclaimer
The above Policy Statement neither gives a guarantee of dividend to be declared by the Company nor does it constitute a commitment
for any future dividend and thus be read as a general guidance on different dividend related issues. The policy upholds the Board’s
absolute/complete liberty to recommend any dividend in deviation of the policy.
Annual Report 2022-23 | Statements and Reports | 117
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Snapshots of 46th Annual General Meeting (Held on virtual platform)
The 46th Annual General Meeting of the shareholders of Beximco Pharmaceuticals Limited held under virtual
platform on December 22, 2022.
118 | Statements and Reports | Annual Report 2022-23
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Audited Financials
Annual Report 2022-23 | Audited Financials | 119
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 119
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Consolidated Financial Statements
Beximco Pharma and Its Subsidiaries
For the Year ended June 30, 2023
120 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated | Annual Report 2022-23
120 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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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 financial statements of Beximco Pharmaceuticals Limited (the “Company”), which comprise the Consolidated
Statement of Financial Position as at June 30, 2023 and Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated
Statement of Changes in Equity and Consolidated Statement of Cash Flows for the year then ended, and notes to the Consolidated Financial
Statements, including a summary of significant accounting policies.
The Accounting year of the subsidiary companies- Beximco Pharma API Limited, Nuvista Pharma Limited and Synovia Pharma PLC, ends on the
same date as of the Company. We have audited the Financial statements of Beximco Pharma API Limited and expressed our unmodified opinion
on those statements vide our report dated October 19, 2023. The Financial Statements of Nuvista Pharma Limited and Synovia Pharma PLC were
audited by A. Qasem & Co. Chartered Accountants, who through their report dated September 24, 2023 have also expressed unmodified opinion on
those statements.
In our opinion, the accompanying consolidated financial statements of the Company give a true and fair view of the consolidated financial position
of the Company as at June 30, 2023, and of its consolidated financial performance and its consolidated cash flows for the year then ended in
accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994, the Securities and Exchange Rules 2020 and other
applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the
Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code)
together with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements
of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Risk
Our response to the risk
Valuation of Property, Plant and Equipment (PP&E)
The carrying value of the PPE was Tk. 42,245,615,338
as at June 30, 2023.
Expenditures are capitalized if they create new assets or
enhance the existing assets, and expensed if they relate to
repair or maintenance of the assets. Classification of the
expenditures involves judgment. The useful lives of PPE
items are based on management’s estimates regarding
the period during which the assets or its significant
components will be used. The estimates are based on
historical experience and market practice and take into
consideration the physical condition of the assets.
Our audit included the following procedure:
• We assessed whether the accounting policies
in relation to the capitalization of expenditures
are in compliance with IFRS and found them to be
consistent.
• We inspected a sample of invoices and L/C
documents to determine whether the classification
between capital and revenue expenditure was
appropriate.
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 121
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Risk
Our response to the risk
Valuation of Property, Plant and Equipment (PP&E)
The valuation of PPE was identified as a key audit matter due
to the significance of this balance to the consolidated financial
statements and that there is significant measurement uncertainty
involved in this valuation.
See Note No. 4 to the consolidated financial statements
• We evaluated whether the useful lives determined and
applied by the management were in line with historical
experience and the market practice.
• We checked whether the depreciation of PPE items
was commenced timely, by comparing the date of the
reclassification from capital work in progress to ready for use,
with the date of the act of completion of the work.
Valuation of Inventory
The inventory of Tk. 12,133,277,975 as at June 30, 2023 was
held at different locations across the country.
We verified the appropriateness of management’s assumptions
applied in calculating the value of the inventory by:
Inventories are carried at the lower of cost and net realizable
value. As a result, the management apply judgment in
determining the appropriate values for slow-moving or obsolete
items.
Since the value of Inventory is significant to the consolidated
Financial Statements and there is significant measurement
uncertainty involved in this valuation, the valuation of inventory
was significant to our audit.
See Note No. 8 to the consolidated financial statements.
• Evaluating the design and implementation of key inventory
controls.
• Attending inventory counts on sample basis and reconciling
the count results to the inventory listing to test the
completeness of data.
• Reviewing the requirement of inventory provisioning and
action there upon by the management.
• Comparing the net realizable value obtained through a
detailed review of sales subsequent to the year-end, to the
cost price of a sample of inventories.
Related party transactions
The Company has related party transactions as described in
Note No. 36 of the Consolidated Financial Statements.
We focused on identification of related parties and disclosure
of related party transactions in accordance with relevant
accounting standards.
Our audit procedures amongst others included the following:
• Evaluated the design and tested the operating effectiveness
of controls over identification and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and
tested material accounts balances.
• Evaluated the disclosures in the Consolidated financial
statements in compliance with IAS 24.
Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the
consolidated financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this
auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
122 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it
becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on such work we perform, we conclude that there is a material misstatement of this other information, we are required to communicate
the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the consolidated Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Company in accordance with
IFRSs, The Companies Act 1994, The Securities and Exchange Rules 2020 and other applicable laws and regulations and for such internal control
as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to
liquidate the Company to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of the Company.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the Consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether
the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company
to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 123
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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 notifications issued by Bangladesh Securities
and Exchange Commission, we also report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of
our audit and made due verification thereof;
b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination
of those books;
c) The Company’s consolidated Statement of Financial Position (Balance sheet) and consolidated Statement of Profit or Loss and Other
Comprehensive Income (Profit & Loss Account) dealt with by this report are in agreement with the books of accounts and;
d) The expenditures incurred and payment made were for the purpose of the Company’s business for the year.
Dhaka
October 19, 2023
M. J. ABEDIN & CO.
Chartered Accountants
Reg No. CAF-001-111
Hasan Mahmood FCA
Enrollment No. 0564
DVC: N/A
124 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Financial Position
As at June 30, 2023
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
Notes
June 30, 2023
4
4( a )
5
6
7
8
9
10
11
12
13
48,280,929,007
42,245,615,338
562,223,398
4,721,034,633
56,512,081
674,570,185
20,973,372
20,875,854,240
12,133,277,975
819,740,355
3,574,654,461
2,984,876,883
227,618,388
1,135,686,178
69,156,783,247
43,680,703,738
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,141,177,755
18,148,196
30,806,194,299
Amount in Taka
June 30, 2022
47,728,777,460
41,593,480,364
618,891,376
4,729,838,408
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
Non-Controlling Interest
14
3,938,962,240
4,035,506,641
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
15
16
17
18
19
20
21
47,619,665,978
44,636,004,458
8,272,093,233
2,550,833,254
3,170,764,435
2,550,495,544
8,776,099,208
3,454,188,843
2,785,072,661
2,536,837,704
13,265,024,036
12,735,932,076
6,621,170,271
1,439,895,168
3,531,707,176
1,129,699,385
88,465,109
454,086,927
6,850,550,319
2,065,962,471
2,478,930,393
1,152,990,410
88,049,428
99,449,055
69,156,783,247
66,148,035,742
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 125
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Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2023
Notes
July 2022- June 2023
July 2021- June 2022
Amount in Taka
Net Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profit Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profit After Tax
Profit/(Loss) Attributable to:
Owners of the Company
Non-Controlling Interest
Other Comprehensive Income/(Loss)
Total Comprehensive Income
Total Comprehensive Income Attributable to:
Owners of the Company
Non-Controlling Interest
22
23
26
27
28
29
30
31
39,266,662,237
(21,953,290,466)
34,669,172,052
(18,848,962,107)
17,313,371,771
15,820,209,945
(10,097,131,808)
(1,180,124,415)
(8,917,007,393)
7,216,239,963
452,657,744
(1,285,698,253)
6,383,199,454
(314,430,512)
(8,938,466,002)
(1,136,591,808)
(7,801,874,194)
6,881,743,943
1,166,259,166
(1,001,835,523)
7,046,167,586
(359,222,585)
6,068,768,942
6,686,945,001
(1,544,300,452)
(1,468,598,852)
(75,701,600)
4,524,468,490
(1,688,316,804)
(1,191,180,488)
(497,136,316)
4,998,628,197
4,614,066,147
(89,597,657)
4,524,468,490
5,123,136,712
(124,508,515)
4,998,628,197
(2,383,527)
4,522,084,963
6,764,517
5,005,392,714
4,611,682,620
(89,597,657)
4,522,084,963
5,129,901,229
(124,508,515)
5,005,392,714
Earnings Per Share (EPS)
32
10.34
11.48
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
126 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Changes in Equity
For the Year Ended June 30, 2023
As at June 30, 2023
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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, 2022
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
Total Comprehensive Income:
Profit for the Year
Other Comprehensive Income/(Loss)
Transferred from deferred tax
Transactions with the Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,383,527)
28,647,841
-
-
4,614,066,147
4,614,066,147
(89,597,657)
4,524,468,490
-
-
(2,383,527)
28,647,841
-
-
(2,383,527)
28,647,841
-
-
(1,561,392,312)
(1,561,392,312)
(6,946,744)
(1,568,339,056)
(5,634,546)
1,267,772
-
-
5,634,546
-
-
1,267,772
-
-
-
1,267,772
Balance as on June 30, 2023
4,461,120,890
5,269,474,690 1,689,636,958 294,950,950 1,141,177,755
18,148,196
30,806,194,299 43,680,703,738
3,938,962,240 47,619,665,978
Net Asset Value (NAV) Per Share
(Note-33)
As at June 30, 2022
Tk.
97.91
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:
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with the Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,358,656)
1,430,698
-
-
-
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
-
-
-
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
27,747,885,918 40,600,497,817
4,035,506,641 44,636,004,458
Net Asset Value (NAV) Per Share
(Note-33)
Tk.
91.01
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 127
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Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated Statement of Cash Flows
For the Year ended June 30, 2023
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
Disposal of Intangible Assets
Dividend Received
Net Cash Used in Investing Activities
Cash Flows from Financing Activities :
Notes
July 2022-June 2023
July 2021-June 2022
Amount in Taka
39,440,236,428
36,145,521,249
(30,943,666,211)
(28,584,815,294)
8,496,570,217
7,560,705,955
(1,272,368,534)
(1,002,350,838)
5,529,516
(1,144,944,341)
6,084,786,858
3,055,358
(1,347,234,025)
5,214,176,450
(2,410,765,411)
(299,262,244)
-
23,353,504
67,725,000
1,931,517
(2,815,211,828)
(124,286,166)
(4,766,635,704)
24,063,832
-
2,015,444
(2,617,017,634)
(7,680,054,422)
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
(1,763,267,386)
(229,380,048)
(1,567,923,375)
(3,560,570,809)
(92,801,585)
1,168,673,821
59,813,942
1,135,686,178
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
13.64
11.69
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
128 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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Beximco Pharmaceuticals Limited and its Subsidiaries
Notes to the Financial Statements
As at and for the year ended June 30, 2023
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). Company’s shares were first
listed on the Dhaka Stock Exchange in 1985 and subsequently on the Chittagong Stock Exchange in 1995. In 2005, BPL acquired Beximco
Infusions Ltd., a publicly listed company specializing in the production and marketing of intravenous fluids. To expand its global presence,
BPL issued Global Depository Receipts (GDRs) and secured a listing on the Alternative Investment Market (AIM) of the London Stock
Exchange. In 2018, BPL acquired 85.2% shares of Nuvista Pharma Limited (Nuvista Pharma/NPL) – an unlisted 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. Sanofi Bangladesh Limited was subsequently
renamed as Synovia Pharma PLC (Synovia Pharma/SPP). Bangladesh Government holds 45.4% shares of the company represented through
the Bangladesh Chemical Industries Corporation (20%) and the Ministry of Industries (25.4%). SPP, like Nuvista Pharma, is an unlisted
pharmaceutical company operating in Bangladesh. Shares of Beximco Pharma are traded on the Dhaka and Chittagong Stock Exchanges
within Bangladesh, while its GDRs are traded on the AIM of the London Stock Exchange.
The registered office of the Company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are located at
Tongi and Kaliakoir of Gazipur district – vicinities close to the capital city Dhaka. The manufacturing facilities of the Company are certified
by leading global regulatory authorities including United States Food and Drug Administration (USFDA).
1.2 The Subsidiaries
Nuvista Pharma Limited (NPL)
Nuvista Pharma, formerly Organon (Bangladesh) Ltd., was a subsidiary of Netherlands based Organon International. The Company has
been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. Following the divestment of Organon’s equity
to the local management in 2006, the company was renamed as Nuvista Pharma Limited. In 2018, Beximco Pharma acquired majority
shareholdings in Nuvista Pharma and thus it became the immediate and ultimate parent of the company. NPL is an unlisted public limited
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 certifiable manufacturing
facility for the leading antibiotic, cephalosporin, are spread over c25 acres of land, located at Tongi, Gazipur. SPP produces approximately
100 branded generic products predominantly for the local market. The company also imports finished 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
Beximco Pharma 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-fibrinolytic, 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.
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 129
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2. Basis of Preparation of Financial Statements
2.1 Statement of Compliance
The financial statements have been prepared in compliance with the requirements of the Companies Act 1994, the Securities & Exchange
Rules 2020, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and other relevant local laws as applicable and in accordance
with the International Financial Reporting Standards (IFRSs).
2.2 Basis of Measurement
The financial statements have been prepared on Historical Cost basis except for certain Property, Plant and Equipment measured at
revalued amount. 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.
2.3 Reporting Period
Accounting year of Beximco Pharmaceuticals Limited (BPL) and its subsidiaries Synovia Pharma PLC (SPP), Nuvista Pharma Limited (NPL)
and Beximco Pharma API Limited (BPAL) begins on July 1 and ends on June 30.
2.4 Comparative Information
The Company acquired majority stake in Synovia Pharma PLC (formerly Sanofi Bangladesh Limited) with effect from October 1, 2021.
Therefore, the comparative prior period figures (July 2021 – June 2022) as reported in the Consolidated Statement of Profit or Loss and
Other Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows include nine
months’ financials (October 2021-June 2022) of Synovia Pharma PLC.
Figures for earlier year have been re-arranged wherever considered necessary to ensure better comparability with the current year.
3. Significant Accounting Policies
3.1 Basis of Consolidation
The financial statements of the subsidiaries have been consolidated with those of Beximco Pharmaceuticals Limited in accordance with
IFRS 10: Consolidated Financial Statements.
The Company acquired 85.2% and 54.6% shares of Nuvista Pharma and Synovia Pharma PLC, respectively. These ownership interests are
adequate enough to establish control over the companies 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 therefore, meets the conditions stated in IFRS 10: Consolidated Financial Statements
to consider it as a subsidiary.
3.2 Inter-Company Transactions
Assets, Liabilities, Equity, Income, Expenses and Cash Flows arising out of transactions between the Company and 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. Profit or Loss and Other Comprehensive Income subsequent to the
acquisitions have been allocated to the Owners of the Company and the NCIs in proportion to their respective shares and disclosed in the
financial statements.
3.4 Valuation of Goodwill
Goodwill has been determined in accordance with IFRS 3: Business Combination. This represents the excess of the aggregate of Purchase
Consideration and the acquisition-date fair value of NCI’s share in the identifiable net assets over the acquisition-date fair value of the
identifiable net assets of the subsidiary.
3.5 Amortization of Intangible Asset
Fair value of identifiable 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
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 2023 (includes provisional estimates for six months
since its audited financials as on December 31,2022) exceeds its investment by an amount of Tk. 26,838,893. 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.
130 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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4. Property Plant and Equipment
As on June 30, 2023
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Amount in Taka
Total
Property Plant &
Equipment
Cost
As on July 01, 2022
Additions
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
423,531,349
13,553,756
124,689,726
121,365,419
-
38,468,331
721,608,581
Transferred in & Capitalized
Transferred from Right-of-use Assets
Disposal during the Year
-
-
-
140,198,289
207,275,929
69,618,482
2,898,228
26,887,690
446,878,618
-
-
-
62,708,000
-
62,708,000
(511,210)
(57,079,965)
(45,975,506)
(30,448,400)
(100,985,576)
(235,000,657)
Cost as on June 30, 2023
7,892,408,445
16,689,690,908
28,922,220,187
811,149,199
968,085,139
1,045,204,681
56,328,758,559
Accumulated Depreciation
As on July 01, 2022
Depreciation Charged
Depreciation (Fair Value Adjustment)
Transferred from Right-of-use Assets
Adjustment for Assets disposed off
Adjustment for policy conformity
Accumulated Depreciation as on
June 30, 2023
-
-
-
-
-
3,407,250,642
9,210,174,678
289,717,754
767,553,171
732,219,217
14,406,915,462
380,155,101
1,234,490,752
39,841,447
35,209,817
74,317,362
1,764,014,479
5,723,364
19,452,060
-
-
-
-
-
46,269,474
-
-
25,175,424
46,269,474
(511,206)
(55,996,182)
(40,836,751)
(29,029,070)
(99,708,492)
(226,081,701)
(15,683,510)
(48,492,874)
(4,142,521)
(7,576,791)
(10,190,108)
(86,085,804)
-
3,776,934,391
10,359,628,434
284,579,929
812,426,601
696,637,979
15,930,207,334
Net Book Value June 30, 2023
7,892,408,445
12,912,756,517
18,562,591,753
526,569,270
155,658,538
348,566,702
40,398,551,225
Capital Work in Progress
Carrying Value as on June 30, 2023
Carrying Value as on June 30, 2022
1,847,064,113
42,245,615,338
41,593,480,364
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 131
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As on June 30, 2023
Cost
As on July 01, 2022
Additions
Transferred to Freehold Assets
Disposal During the Year
Cost as on June 30, 2023
Accumulated Depreciation
As on July 01, 2022
Depreciation Charged
Transferred to Freehold Assets
Adjustment of Assets Disposal off
Particulars
Property
Vehicle
Amount in Taka
Total Right-of-use
Assets
114,163,530
754,483,695
868,647,225
74,492,308
(62,708,000)
(15,065,704)
74,492,308
(62,708,000)
(15,065,704)
114,163,530
751,202,299
865,365,829
1,268,486
248,487,363
7,526,351
107,195,409
(46,269,474)
(15,065,704)
249,755,849
114,721,760
(46,269,474)
(15,065,704)
Accumulated Depreciation as on June 30, 2023
8,794,837
294,347,594
303,142,431
Net Book Value June 30, 2023
105,368,693
456,854,705
562,223,398
Net Book Value June 30, 2022
112,895,044
505,996,332
618,891,376
5. Intangible Assets
Particulars
Cost
As on July 01, 2022
Disposal during the Year
Addition / Transferred in & Capitalized
Marketing Rights,
Brand &Product
development
ERP & Software
Trade Name & Trade
Marks
Total
4,960,011,737
(67,725,000)
36,203,786
283,211,071
(16,657,377)
73,548,379
68,870,674
5,312,093,482
-
-
(84,382,377)
109,752,165
As on June 30, 2023
4,928,490,523
340,102,073
68,870,674
5,337,463,270
Amortization
As on July 01, 2022
611,948,344
126,658,259
10,498,834
749,105,437
Amortized During the year
55,823,731
27,533,548
-
83,357,279
Amortization (Fair Value Adjustment)
129,120,000
-
30,200,000
159,320,000
Adjustment for retirement and disposal
-
(16,038,638)
-
(16,038,638)
As on June 30, 2023
796,892,075
138,153,169
40,698,834
975,744,078
Net Book Value June 30, 2023
4,131,598,448
201,948,904
28,171,840
4,361,719,192
Capital Work in Progress
Carrying Value as on June 30, 2023
359,315,441
4,721,034,633
Net Book Value June 30, 2022
4,348,063,393
156,552,812
58,371,840
4,562,988,045
Capital Work in Progress
Carrying Value as on June 30, 2022
166,850,363
4,729,838,408
132 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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Amount in Taka
June 30, 2023
June 30, 2022
546,691,213
127,878,972
674,570,185
546,691,213
127,878,972
674,570,185
6. Goodwill
Acquisition of 85.2% stake in Nuvista Pharma Limited
Acquisition of 54.6% stake in Synovia Pharma PLC.
7. Other Investments
Details
June 30, 2023
June 30, 2022
Bangladesh Export Import Co. Ltd.
Central Depository Bangladesh Ltd. (CDBL)
Number of Share
Value
Number of Share
167,854
19,403,922
571,182
1,569,450
20,973,372
167,854
571,182
Value
21,787,449
1,569,450
23,356,899
a. The shares of Bangladesh Export Import Co. Ltd. are listed on Dhaka and Chittagong Stock Exchanges. The market value of each share of
Bangladesh Export Import Co. Ltd. as on June 30, 2023 was Tk. 115.60 (June 30, 2022: Tk.129.80). The fair value Loss of Tk. 2,383,527 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.
8. Inventories
This consists of :
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 :
Spares & Accessories
Stock of Stationery
Literature & Other Materials
Amount in Taka
June 30, 2023
June 30, 2022
3,444,510,836
2,486,292,696
930,042,235
4,722,534,133
1,351,874,369
102,921,941
113,354,964
43,029,486
684,808,447
4,751,533,955
1,171,926,025
98,605,393
82,051,648
37,709,095
1,425,010,011
1,092,367,820
12,133,277,975
10,405,295,079
634,125,746
19,049,051
166,565,558
819,740,355
558,966,964
20,974,250
138,856,042
718,797,256
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This consists of :
Trade Receivable
Other Receivable
Amount in Taka
June 30, 2023
June 30, 2022
3,369,995,799
2,963,143,615
204,658,662
179,673,579
3,574,654,461
3,142,817,194
Accounts Receivable is reported net of provision for bad debts of Tk. 16,163,830. It includes an amount of Tk. 1,071,490,950, equivalent USD
10,013,934 (June 30, 2022: Tk. 1,016,268,270, equivalent USD 11,821,851) 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. 1,435,857,890 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.1,445,757,890 on April 30, 2023.
No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally or jointly with
any other person.
Aging of Trade Receivables :
Amount due within 6 months
Amount due for 6 months & above
11. Loans, Advances and Deposits
This is unsecured, considered good and consists of as follows :
Clearing & Forwarding
VAT
Claims Receivable
Security Deposit & Earnest Money
Lease Deposit
Advance for Expenses including Capital Expenditure
Bank Guarantee Margin
Salary Advance / Loan
Rent Advance
Vehicle Advance
Raw & Packing Material
Prepaid Insurance
Overseas Liaison Office
Others
3,153,725,178
2,841,350,572
216,270,621
121,793,043
3,369,995,799
2,963,143,615
Amount in Taka
June 30, 2023
June 30, 2022
140,516,040
565,923,250
10,957,809
224,632,154
2,133,040
817,982,177
19,849,064
109,156,995
39,161,704
236,599,418
519,527,265
60,957,643
71,228,285
166,252,039
259,313,897
619,340,481
37,673,863
158,893,927
2,133,040
654,535,757
18,826,990
93,892,900
38,745,324
225,975,541
449,393,148
53,234,921
67,005,418
108,074,697
2,984,876,883
2,787,039,904
No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally or jointly with
any other person, except as stated above.
134 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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This consists of :
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
5,951,250 Ordinary Shares issued in exchange of Shares of Beximco Infusions Ltd.
31,291,147 Ordinary Shares issued on conversion of Preference Shares
Amount in Taka
June 30, 2023
June 30, 2022
529,669,736
279,615,091
606,016,442
-
736,688,901
152,369,829
1,135,686,178
1,168,673,821
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 Pharma 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 on AIM of London Stock Exchange.
C. Composition of Shareholding :
Sponsors/Directors:
A S F Rahman
Salman F Rahman
Other Directors and Associates
June 30, 2023
June 30, 2022
Number of
Shares
% of Share
Capital
Number of
Shares
% of Share
Capital
9,058,888
9,080,095
116,305,973
134,444,956
2.03
2.04
26.07
30.14
9,058,888
9,080,095
116,305,973
134,444,956
Other Shareholdings:
Foreign Portfolio Investors (DSE/CSE)
Holders of GDRs (excluding Board Director)
Institutions (ICB, ICB Investors’ Accounts & Others)
Individual Shareholders
Total
44,433,722
84,386,054
106,355,109
76,492,248
311,667,133
446,112,089
9.96
18.92
23.83
17.15
69.86
43,246,139
84,386,054
97,533,003
86,501,937
311,667,133
100.00
446,112,089
100.00
2.03
2.04
26.07
30.14
9.69
18.92
21.86
19.39
69.86
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 135
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14. Non-Controlling Interest
a. NPL
Non-Controlling Interest (Opening )
Proportionate profit/(loss)
Less: Cash Dividend
b. SPP
Non-Controlling Interest (Opening )
Non-controlling Interest at the date of acquisition
Proportionate profit/(loss)
Less: Cash Dividend
Total (NPL & SPP)
15. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Project Loan - ODDO BHF SE, Frankfurt, Germany
Term Loan-Agrani Bank
Lease Liability
Term Loan-Dhaka Bank
Lease Liability
This consists of :
Payable in one year
Payable beyond one year
June 30, 2023
Amount in Taka
June 30, 2022
367,061,755
38,119,234
(6,946,744)
398,234,245
3,668,444,886
-
(127,716,891)
-
3,540,727,995
3,938,962,240
334,306,627
39,701,872
(6,946,744)
367,061,755
-
3,857,134,718
(164,210,387)
(24,479,445)
3,668,444,886
4,035,506,641
236,117,255
1,915,856,341
393,116,228
5,743,430
2,550,833,254
670,863,306
2,313,748,864
456,761,583
12,815,090
3,454,188,843
146,521,840
393,116,228
539,638,068
160,579,032
456,761,583
617,340,615
16. Liability for Gratuity, Pension and WPPF & Welfare Funds
Gratuity Payable
Pension Payable
Workers Profit Participation and Welfare Fund
1,870,737,474
5,334,216
1,294,692,745
3,170,764,435
1,618,961,997
5,334,216
1,160,776,448
2,785,072,661
136 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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Amount in Taka
June 30, 2022
4,474,809,399
4,817,103,014
505,552,356
497,141,234
269,132,312
874,534,970
-
-
409,733,361
492,341,234
644,508,608
461,766,072
24,913,289
184,741
6,621,170,271
6,850,550,319
621,801,668
664,500,000
146,521,840
7,071,660
938,924,362
960,000,000
160,579,032
6,459,077
1,439,895,168
2,065,962,471
1,618,272,304
1,450,986,422
149,408,697
313,039,753
3,531,707,176
1,373,370,694
889,344,958
110,410,808
105,803,933
2,478,930,393
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
City bank Limited
18. Long Term Borrowings-Current Maturity
This consists of :
Project Loan - ODDO BHF SE, Frankfurt, Germany
Term Loan-Agrani Bank
Lease Liability
Term Loan-Dhaka Bank
19. Creditors and Other Payables
Goods & Services
Provident Fund
Advance Against Sales
Others
20. Accrued Expenses
This is unsecured, falling due within one year and consists of as follows :
For Expenses
Workers’ Profit Participation and Welfare Funds -(current year)
815,268,873
314,430,512
1,129,699,385
793,767,825
359,222,585
1,152,990,410
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 137
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21. Dividend Payable / Unclaimed Dividend
The Dividend Payable/Unclaimed dividend as on June 30, 2023 consists of Tk. 15,477,101 relating to BPL’s dividend for the year 2021-22 which
has been paid but not yet claimed. The remaining balance relates to dividend for prior years unclaimed to date. During the year an amount of Tk.
13,786,791 of the unclaimed dividend outstanding for more than 3 years has been paid to the Capital Market Stabilization Fund (CMSF) following
the directives of the Bangladesh Securities and Exchange Commission.
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)
24. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
July 2022- June 2023
July 2021- June 2022
Amount in Taka
36,334,152,216
2,763,246,905
169,263,116
39,266,662,237
31,889,033,479
2,685,096,151
95,042,422
34,669,172,052
684,808,447
16,873,468,924
5,857,205,833
23,415,483,204
(930,042,235)
22,485,440,969
2,486,292,696
804,670,592
25,776,404,257
(378,602,955)
(3,444,510,836)
21,953,290,466
355,079,579
14,971,042,279
4,902,614,580
20,228,736,438
(684,808,447)
19,543,927,991
1,803,930,326
295,801,260
21,643,659,577
(308,404,774)
(2,486,292,696)
18,848,962,107
6,022,065,373
17,028,733,994
(6,177,330,443)
16,873,468,924
4,688,041,185
16,305,066,467
(6,022,065,373)
14,971,042,279
138 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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25. Factory Overhead
Salaries and Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Registration & Renewals
Travelling & Conveyance
Entertainment
Research and Development
Rent
Printing & Stationery
Telephone, Cellphone, Internet & Postage
Toll Expense
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Security Expenses
Other Expenses
26. Administrative Expenses
Salaries and 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 2022- June 2023
July 2021- June 2022
Amount in Taka
2,258,988,455
646,060,664
56,837,942
9,753,993
9,952,617
42,323,586
5,085,555
363,020,013
9,628,020
31,707,563
10,518,543
12,199,908
622,647,608
14,685,407
28,630,624
1,682,688,667
34,162,972
18,313,696
1,978,710,523
628,788,277
56,200,557
9,223,410
6,264,023
50,000,748
9,902,080
345,983,852
7,835,447
44,545,079
12,513,215
30,697,402
351,013,808
13,789,240
8,645,632
1,296,771,715
35,053,987
16,675,585
5,857,205,833
4,902,614,580
712,891,892
42,885,394
105,398,992
8,801,754
32,097,565
10,548,711
8,633,696
3,470,000
7,724,845
26,372,649
33,404,509
-
45,896,460
784,669
14,240,935
45,619,482
3,454,508
26,484,107
51,414,247
635,735,765
39,745,136
89,621,545
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
1,951,304
7,195,687
54,687,077
2,899,082
24,178,436
43,827,775
1,180,124,415
1,136,591,808
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 139
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27. Selling, Marketing and Distribution Expenses
Salaries and 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
July 2022- June 2023
July 2021- June 2022
Amount in Taka
3,419,024,044
3,061,082,335
160,024,069
92,388,180
858,858,287
85,799,736
55,221,661
120,811,372
70,471,632
25,227,242
101,986,509
200,581,827
39,316,350
444,472,514
3,868,099
65,708,828
473,358,232
259,522,132
9,933,118
208,365,155
11,122,460
52,643,478
2,910,043
24,633,191
362,269,143
148,250,914
143,725,244
613,597,539
491,888,971
332,194,989
20,398,163
3,055,087
15,379,184
118,272,362
49,953,940
736,860,051
76,900,893
45,627,054
84,600,340
113,042,771
21,294,622
81,286,612
128,432,491
44,275,975
395,734,497
15,502,443
54,330,763
324,066,346
171,917,335
12,646,614
181,219,118
8,875,134
49,179,523
6,946,764
20,146,600
297,847,820
137,201,570
208,693,377
527,996,777
448,553,137
328,798,251
19,313,099
3,451,016
27,824,564
8,917,007,393
7,801,874,194
140 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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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
Profit/(Loss) on Sale of Fixed Assets
Miscellaneous Income
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 :
(a) Current Tax
(b) Deferred Tax Expense
Deferred Tax Expense is arrived at as follows :
i. BPL
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 profit or Loss and Other Comprehensive Income
July 2022- June 2023
July 2021- June 2022
Amount in Taka
5,529,516
1,931,517
61,461,940
268,831,523
66,944,083
-
6,096,998
-
13,815,805
28,046,362
452,657,744
883,207,883
58,059,511
300,393,065
44,037,794
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
24,410,034
1,166,259,166
678,750,473
47,069,776
199,775,709
76,239,565
1,285,698,253
1,001,835,523
1,468,598,852
75,701,600
1,544,300,452
1,191,180,488
497,136,316
1,688,316,804
12,608,874,084
(1,554,826,488)
(13,172,086)
12,125,676,008
(1,327,433,137)
(10,647,866)
11,040,875,510
10,787,595,005
22.5%
2,484,196,990
2,427,208,876
56,988,114
1,267,772
58,255,886
22.5%
2,427,208,876
1,871,974,397
555,234,479
1,430,698
556,665,177
Annual Report 2022-23 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | 141
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ii. NPL
Property, Plant & Equipment ( Difference in book value & Tax base)
Deferred liability (Gratuity)
Provision for Bad Debts
Temporary Difference
Tax rate
Deferred Tax Liability
Deferred tax on revaluation surplus
Deferred tax liabilities at end of the year
Deferred tax liabilities at beginning of the year
Transferred to revaluation reserve
Deferred Tax charged to profit or Loss and Other Comprehensive Income
iii.SPP
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 year
Deferred Tax Liability/(Asset) at beginning of the year
Deferred tax charged to profit or loss and other comprehensive income
Total (BPL, NPL &SPP)
July 2022- June 2023
July 2021- June 2022
Amount in Taka
417,006,176
(193,019,251)
(2,991,744)
220,995,181
30.0%
66,298,554
-
66,298,554
109,628,828
(28,647,841)
(14,682,433)
195,693,431
(128,225,951)
-
(272,965,958)
(205,498,478)
27.5%
(56,512,081)
(88,640,228)
32,128,147
75,701,600
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
31. Other Comprehensive Income - Unrealized Gain/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
(2,383,527)
(2,383,527)
6,764,517
6,764,517
32. Earnings Per Share (EPS)
(a) Earnings attributable to the Owners of the Company
(b) Weighted average number of Shares outstanding during the year
4,614,066,147
446,112,089
5,123,136,712
446,112,089
Earnings Per Share (EPS)
10.34
11.48
142 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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33. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Less Non-controlling Interest
Equity Attributable to the Owners of the Company
Number of Ordinary Shares
Net Asset Value (NAV) Per Share
June 30, 2023
Amount in Taka
June 30, 2022
69,156,783,247
(21,537,117,269)
(3,938,962,240)
43,680,703,738
446,112,089
97.91
66,148,035,742
(21,512,031,284)
(4,035,506,641)
40,600,497,817
446,112,089
91.01
34. Net Operating Cash Flows Per Share (NOCFPS)
July 2022- June 2023
July 2021- June 2022
Net Cash Generated from Operating Activities
Number of Ordinary Shares
Net Operating Cash Flows Per Share (NOCFPS)
6,084,786,858
446,112,089
13.64
5,214,176,450
446,112,089
11.69
35. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
4,524,468,490
4,998,628,197
Adjustment to reconcile net profit to net cash provided by operating activities :
(a) Non-cash/ Non-operating Items :
Depreciation
Amortization
Deferred Tax
Exchange rate fluctuation (Gain) / Loss on Foreign Currency Bank Loan
Dividend Income
(Profit) / 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 Gratuity & WPPF
Increase/(Decrease) in Creditors and Other Payables
Increase/(Decrease) in Accrued Expenses
Increase/(Decrease) in Income Tax Payable
Net cash Generated from Operating Activities
2,294,487,968
1,817,825,859
242,677,279
75,701,600
233,844,494
(1,931,517)
(13,815,805)
(59,813,942)
(734,169,600)
(1,727,982,896)
(100,943,099)
(431,837,267)
(30,983,360)
(218,535,999)
385,691,774
1,059,575,776
(23,792,401)
354,637,872
6,084,786,858
2,124,987,969
1,461,895,126
205,114,934
497,136,316
20,837,952
(2,015,444)
(12,617,947)
(45,362,968)
(1,909,439,716)
(2,508,003,069)
(57,074,532)
352,253,797
(32,996,258)
10,093,080
341,842,995
(9,722,474)
117,224,024
(123,057,279)
5,214,176,450
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36. Related Party Disclosures
a. Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of Related Party
Nature of Transactions
Value of Transaction
Balance at year end
I & I Services Ltd.
Delivery of Products
Distribution Commission
35,252,390,952
613,597,539
1,435,857,890
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 2022-23. The dividend proposal
is subject to shareholders’ approval in 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 2022-23. The
proposed dividend is subject to approval of the shareholders of NPL in the forthcoming Annual General Meeting.
c. Board of Directors of Synovia Pharma PLC (SPP) has declared 10% cash dividend (Tk. 10.00 per Share of Tk 100 each) for the year 2022-23.
The proposed dividend is subject to approval of the shareholders of SPP in the forthcoming Annual General Meeting.
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Dhaka
October 19, 2023
144 | Beximco Pharmaceuticals Ltd. and Its Subsidiaries (Consolidated) | Annual Report 2022-23
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Financial Statements
Beximco Pharmaceuticals Limited
For the Year ended June 30, 2023
Annual Report 2022-23 | Beximco Pharmaceuticals Limited (Stand-alone) | 145
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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 financial statements of Beximco Pharmaceuticals Limited (the “Company”), which comprise the Statement of Financial Position
as at 30 June 2023 and Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements of the Company give a true and fair view of the financial position of the Company as at
30 June 2023, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting
Standards (IFRSs), the Companies Act 1994, the Securities and Exchange Rules 2020 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together
with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the
current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Risk
Our response to the risk
Valuation of Property, Plant and Equipment (PP&E)
The carrying value of the PPE was Tk. 36,136,306,483 as at 30
June, 2023.
Our audit included the following procedure:
Expenditures are capitalized if they create new assets or
enhance the existing assets, and expensed if they relate to repair
or maintenance of the assets. Classification of the expenditures
involves judgment. The useful lives of PPE items are based on
management’s estimates regarding the period during which the
assets or its significant components will be used. The estimates
are based on historical experience and market practice and take
into consideration the physical condition of the assets.
The valuation of PPE was identified as a key audit matter due
to the significance of this balance to the financial statements
and that there is significant measurement uncertainty involved
in this valuation.
See Note No. 4 to the financial statements
• We assessed whether the accounting policies in relation to
the capitalization of expenditures are in compliance with IFRS
and found them to be consistent.
• We inspected a sample of invoices and L/C documents to
determine whether the classification between capital and
revenue expenditure was appropriate.
• We evaluated whether the useful lives determined and
applied by the management were in line with historical
experience and the market practice.
• We checked whether the depreciation of PPE items
was commenced timely, by comparing the date of the
reclassification from capital work in progress to ready for use,
with the date of the act of completion of the work.
146 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
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Risk
Our response to the risk
Valuation of Inventory
The inventory of Tk. 9,951,338,526 as at 30 June, 2023 was
held at different locations across the country.
We verified the appropriateness of management’s assumptions
applied in calculating the value of the inventory by:
Inventories are carried at the lower of cost and net realizable
value. As a result, the management apply judgment in
determining the appropriate values for slow-moving or obsolete
items.
Since the value of Inventory is significant to the Financial
Statements and there is significant measurement uncertainty
involved in this valuation, the valuation of inventory was
significant to our audit.
See Note No. 9 to the financial statements
• Evaluating the design and implementation of key inventory
controls.
• Attending inventory counts on sample basis and reconciling
the count results to the inventory listing to test the
completeness of data.
• Reviewing the requirement of inventory provisioning and
action there upon by the management.
•Comparing the net realizable value obtained through a
detailed review of sales subsequent to the year-end, to the
cost price of a sample of inventories.
Contingent Liability
The Company is subject to a number of claims and litigations. The
amounts of claims are significant and estimates of the amounts
of provisions or contingent liabilities are subject to management
judgement. These claims and regulatory matters are uncertain in
timing of resolutions and amount or consequences.
These claims and litigation matters were a key audit matter
due to the amounts involved, potential consequences and the
inherent difficulty in assessing the outcome. The assessment
of whether or not a liability should be recognized involves
judgement from management.
The Company also provided corporate guarantees to financial
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 confirmations in this regard from external
counsel.
We also validated the completeness and appropriateness of the
related disclosures in Note No. 49 of the financial statements.
Related party transactions
The Company has related party transactions with its subsidiaries
and other related parties as described in Note No. 40 of the
financial statements.
We focused on identification of related parties and disclosure
of related party transactions in accordance with relevant
accounting standards.
Our audit procedures amongst others included the following:
• Evaluated the design and tested the operating effectiveness
of controls over identification and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and
tested material accounts balances.
• Evaluated the disclosures in the financial statements in
compliance with IAS 24.
Annual Report 2022-23 | Beximco Pharmaceuticals Limited (Stand-alone) | 147
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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
financial statements and our auditor’s report thereon. The Annual Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on such work we perform, we conclude that there is a material misstatement of this other information, we are required to communicate
the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the financial statements of the Company in accordance with IFRSs,
The Companies Act 1994, The Securities and Exchange Rules 2020 and other applicable laws and regulations and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the
Company to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of the Company.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
148 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of
the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, The Securities and Exchange Rules 2020 and relevant notifications issued by Bangladesh Securities
and Exchange Commission, we also report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of
our audit and made due verification thereof;
b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination
of those books;
c) The Company’s Statement of Financial Position (Balance sheet) and Statement of Profit or Loss and Other Comprehensive Income (Profit
& Loss Account) dealt with by this report are in agreement with the books of accounts and;
d) The expenditures incurred and payment made were for the purpose of the Company’s business for the year.
Dhaka
October 19, 2023
M. J. ABEDIN & CO.
Chartered Accountants
Reg No. CAF-001-111
Hasan Mahmood FCA
Enrollment No. 0564
DVC: 2310230564AS206358
Annual Report 2022-23 | Beximco Pharmaceuticals Limited (Stand-alone) | 149
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Beximco Pharmaceuticals Limited
Statement of Financial Position
As at June 30, 2023
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Right-of-use Assets
Intangible Assets
Investment in Subsidiaries
Investment in Associates
Other Investments
Current Assets
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances and Deposits
Cash and Cash Equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
Shareholders’ Equity
Issued Share Capital
Share Premium
Excess of Issue Price over Face Value of GDRs
Capital Reserve on Merger
Revaluation Surplus
Unrealized Gain/(Loss)
Retained Earnings
Non-Current Liabilities
Long Term Borrowings-Net of Current Maturity
Liability for Gratuity and WPPF & Welfare Funds
Deferred Tax Liability
Current Liabilities and Provisions
Short Term Borrowings
Long Term Borrowings-Current Maturity
Creditors and Other Payables
Accrued Expenses
Dividend Payable / Unclaimed Dividend
Income Tax Payable
TOTAL EQUITY AND LIABILITIES
Notes
June 30, 2023
44,680,252,471
36,136,306,483
517,752,778
1,064,072,514
6,911,821,604
29,325,720
20,973,372
Amount in Taka
June 30, 2022
44,161,617,726
35,712,231,087
565,076,673
919,805,743
6,911,821,604
29,325,720
23,356,899
17,913,545,825
15,533,009,363
9,951,338,526
761,585,177
3,622,624,044
2,639,348,819
938,649,259
8,802,040,026
664,709,483
2,739,772,443
2,510,263,322
816,224,089
62,593,798,296
59,694,627,089
43,341,239,142
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,112,529,914
18,148,196
30,495,377,544
7,837,897,000
2,509,415,964
2,844,284,046
2,484,196,990
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
11,414,662,154
11,067,295,849
6,146,635,301
1,415,956,691
2,709,945,476
627,094,074
87,716,594
427,314,018
6,363,686,217
2,039,694,209
1,908,464,970
576,413,875
87,370,715
91,665,863
62,593,798,296
59,694,627,089
4
4 (b)
5
6
7
8
9
10
11
12
13
14(b)
15
4(c)
16
17
18
19
20
21
22
23
24
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS206358
150 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
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Beximco Pharmaceuticals Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2023
Notes
July 2022 - June 2023
July 2021 - June 2022
Amount in Taka
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
Contribution to WPPF & Welfare Funds
Profit Before Tax
Income Tax Expenses
Current Tax
Deferred Tax Income/ (Expense)
Profit after Tax
Other Comprehensive Income/(Loss)
Total Comprehensive Income
Earnings Per Share (EPS)
25
26
29
30
31
32
33
34
35
36
32,991,855,420
(18,471,417,294)
14,520,438,126
(7,913,668,032)
(903,653,034)
(7,010,014,998)
30,220,731,648
(16,507,965,726)
13,712,765,922
(7,118,937,516)
(881,516,329)
(6,237,421,187)
6,606,770,094
6,593,828,406
832,045,709
(1,246,616,832)
6,192,198,971
1,456,174,446
(976,632,093)
7,073,370,759
(294,866,618)
(336,827,179)
5,897,332,353
6,736,543,580
(1,309,323,445)
(1,251,067,559)
(58,255,886)
4,588,008,908
(2,383,527)
4,585,625,381
(1,575,199,937)
(1,018,534,760)
(556,665,177)
5,161,343,643
6,764,517
5,168,108,160
10.28
11.57
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS206358
Annual Report 2022-23 | Beximco Pharmaceuticals Limited (Stand-alone) | 151
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Statement of Changes in Equity
For the Year ended June 30, 2023
Share
Capital
Share
Premium
Excess of
Issue Price
over Face
Value of GDRs
Capital
Reserve on
Merger
Amount in Taka
Revaluation
Surplus
Unrealized
Gain/(Loss)
Retained
Earnings
Total
Balance as on July 01, 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
Total Comprehensive Income :
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with the
Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,588,008,908
4,588,008,908
(2,383,527)
-
(2,383,527)
-
(1,561,392,312)
(1,561,392,312)
(5,634,546)
1,267,772
-
-
5,634,546
-
-
1,267,772
Balance as on June 30, 2023
4,461,120,890 5,269,474,690 1,689,636,958 294,950,950 1,112,529,914
18,148,196 30,495,377,544 43,341,239,142
Net Asset Value (NAV) Per Share
(Note-37)
For the Year ended June 30, 2022
97.15
Share
Capital
Share
Premium
Excess of
Issue Price
over Face
Value of GDRs
Capital
Reserve on
Merger
Revaluation
Surplus
Unrealized
Gain/(Loss)
Retained
Earnings
Total
Balance as on July 01, 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 :
Profit for the Year
Other Comprehensive Income/(Loss)
Transactions with the
Shareholders:
Cash Dividend
Adjustment for Depreciation on
Revalued Assets
Adjustment for Deferred Tax on
Revalued Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
-
-
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
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
152 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS206358
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Beximco Pharmaceuticals Limited
Statement of Cash Flows
For the Year ended June 30, 2023
Cash Flows from Operating Activities :
Receipts from Customers and Others
Payments to Suppliers and Employees
Cash Generated from Operations
Interest Paid
Interest Received
Income Tax Paid
Net Cash Generated from Operating Activities
Cash Flows from Investing Activities :
Acquisition of Property, Plant and Equipment
Intangible Assets
Synovia Acquisition
Disposal of Property, Plant and Equipment
Disposal of Intangible Assets
Dividend Received
Net Cash Used in Investing Activities
Cash Flows from Financing Activities :
Net Increase /(Decrease) in Long Term Borrowings
Net Increase/(Decrease) in Short Term Borrowings
Dividend Paid
Net Cash (Used in) / from Financing Activities
Increase/(Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Cash and Cash Equivalents at End of Year
Net Operating Cash Flow Per Share
Notes
July 2022 - June 2023
July 2021 - June 2022
Amount in Taka
33,062,769,123
(25,132,310,268)
7,930,458,855
31,670,123,381
(24,518,915,859)
7,151,207,522
(1,233,059,791)
205,684
(915,419,404)
5,782,185,344
(976,632,093)
699,570
(1,147,310,332)
5,027,964,667
(2,028,517,002)
(286,712,648)
-
13,992,690
67,725,000
41,985,413
(2,191,526,547)
(1,749,703,463)
(217,050,916)
(1,561,046,433)
(3,527,800,812)
62,857,985
816,224,089
59,567,185
938,649,259
(2,712,188,566)
(123,761,166)
(4,766,635,704)
13,163,510
-
71,517,955
(7,517,903,971)
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
12.96
11.27
39
39
13
38
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 19, 2023 and signed for and on behalf of the Board :
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS206358
Annual Report 2022-23 | Beximco Pharmaceuticals Limited (Stand-alone) | 153
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Beximco Pharmaceuticals Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2023
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). Company’s shares were first
listed on the Dhaka Stock Exchange in 1985 and subsequently on the Chittagong Stock Exchange in 1995. In 2005, BPL acquired Beximco
Infusions Ltd., a publicly listed company specializing in the production and marketing of intravenous fluids. To expand its global presence,
BPL issued Global Depository Receipts (GDRs) and secured a listing on the Alternative Investment Market (AIM) of the London Stock
Exchange. In 2018, BPL acquired 85.2% shares of Nuvista Pharma Limited (Nuvista Pharma/NPL) – an unlisted 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. Sanofi Bangladesh Limited was subsequently
renamed as Synovia Pharma PLC (Synovia Pharma/SPP). Bangladesh Government holds 45.4% shares of the company represented through
the Bangladesh Chemical Industries Corporation (20%) and the Ministry of Industries (25.4%). SPP, like Nuvista Pharma, is an unlisted
pharmaceutical company operating in Bangladesh. Shares of Beximco Pharma are traded on the Dhaka and Chittagong Stock Exchanges
within Bangladesh, while its GDRs are traded on the AIM of the London Stock Exchange.
The registered office of the Company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are located at
Tongi and Kaliakoir of Gazipur district – vicinities close to the capital city Dhaka. The manufacturing facilities of the Company are certified
by leading global regulatory authorities including United States Food and Drug Administration (USFDA).
1.2. Nature of Business
The Company is engaged in manufacturing and marketing of generic pharmaceuticals formulation products across diverse spectrum of
therapeutic areas. The product portfolio includes a variety of dosage forms such as solid, liquid, creams and ointments, suppositories,
metered dose inhalers, dry powder inhalers, nasal sprays, sterile items, lyophilized injectables, and large volume intravenous fluids.
Additionally, BPL is involved in the manufacturing of Active Pharmaceutical Ingredients (APIs) and extends contract manufacturing services
to other companies. Products of the Company are sold in domestic and international markets.
2. Basis of Preparation of Financial Statements
2.1 Statement of Compliance
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1994, the Securities & Exchange
Rules 2020, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and other relevant local laws as applicable and in accordance
with the International Financial Reporting Standards (IFRSs).
2.2 Reporting Framework and Compliance thereof
The Financial Reporting Act, 2015 (FRA) was enacted in 2015. The Financial Reporting Council (FRC) under the FRA was formed in 2017 and
since then it has 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 financial statements have been prepared in accordance with IFRSs (including IASs) and the Companies Act, 1994. The title
and format of these financial 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 Act, 2023;
The Value Added Tax and Supplementary Duty Act, 2012;
The Value Added Tax and Supplementary Duty Rules, 2016;
The Labour Act, 2006 with subsequent amendments in 2013; and
Others laws as applicable.
2.3 Basis of Measurement
The financial statements have been prepared using Historical Cost Basis with exception of land, building and plant & machinery which was
revalued on 31 December 2008. The investment in shares of listed company has been valued at year end quoted price.
154 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
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2.4 Presentation of Financial Statements
The presentation of the financial statements is in accordance with the guidelines provided by IAS 1: Presentation of Financial Statements.
The financial statements comprise of:
(a) Statement of Financial Position as at the end of the year June 30, 2023;
(b) Statement of Profit or Loss and Other Comprehensive Income for the year ended June 30, 2023;
(c) Statement of Changes in Equity for the year ended June 30, 2023;
(d) Statement of Cash Flows for the year ended June 30, 2023; and
(e) notes, comprising summary of significant accounting policies and explanatory information.
2.5. Reporting Period and Comparative Information
The Financial statements cover a 12 months’ period starting from July 1, 2022 to June 30, 2023. The last audited financial statements were
prepared for the year ending June 30, 2022. 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 financial statements have been authorized for issue by the Board of Directors on October 19, 2023.
2.7. Functional and Presentation Currency
The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the Company’s functional currency. All
financial information presented has been rounded off to the nearest Taka except indicated otherwise.
2.8. Use of Estimates and Judgements
The preparation of financial 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, as
well as for contingent assets and liabilities that require disclosure, during and at the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision
of accounting estimates is recognized in the period in which the estimate is revised and in any future period affected. The key areas of
estimation, uncertainty and critical judgements in applying accounting policies having significant effect on the amounts recognized in the
financial statements, include depreciation, inventory valuation, accrued expenses, others payable, capitalization of assets and deferred
liability for gratuity.
3. Significant Accounting Policies
The accounting principles and policies in respect of material items of financial statements set out below have been applied consistently to all periods
presented in these financial statements.
3.1. Revenue from Contracts with Customers
In compliance with the requirements of IFRS 15: Revenue from Contracts with Customers, revenue is recognized when the Company fulfills
the performance obligations in contract with the customers. It usually occurs when customers take possession of the products or goods are
delivered at destination specified in the contracts and recovery of the consideration is probable, the associated costs and possible return of
goods can be estimated reliably, and there is no continuing management involvement with the goods.
Revenue from sale of goods is measured at the fair value of the consideration received or receivable net of returns and allowances, trade
discounts, rebates, and Value Added Tax (VAT).
3.2. Property, Plant and Equipment (PP&E)
3.2.1. Recognition and Measurement
This has been stated at cost or revalued amount less accumulated depreciation in compliance with the requirements of IAS 16: Property,
Plant and Equipment. The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the
assets to its working condition for its intended use inclusive of inward freight, duties, and non-refundable taxes.
3.2.2. Maintenance Activities
The Company incurs maintenance costs for all its major items of property, plant and equipment. Repair and maintenance costs are
charged as expenses when incurred.
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3.2.3. Depreciation
Depreciation is provided to amortize the cost of the assets after commissioning, over the period of their expected useful lives, in accordance
with the provisions of IAS 16: Property, Plant and Equipment. Depreciation is provided at the following rates on reducing balance basis:
Building and Other Construction
Plant and Machinery
Furniture & Fixtures
Transport & Vehicle
Office Equipment
2% - 10%
4% - 15%
7.5% - 10%
20%
10% - 15%
3.2.4. Retirements and Disposals
On disposal of fixed assets, the cost and accumulated depreciation are eliminated and gain or loss on such disposal is reflected in the
income statement, which is determined with reference to the net book value of the assets and net sales proceeds.
3.3. Right-of-use Assets
IFRS 16: Leases has introduced a single on-balance sheet lease accounting model for leases and replaces the previously adopted IAS 17:
Leases. The standard requires that an asset acquired under a lease be recognized as Right- of- use Asset and the corresponding liability as
lease liability. The lessee shall measure the lease liability at the present value of the future lease payment discounted using the interest rate
implicit in the lease. The assets shall be depreciated over the lease period and the interest on the lease shall be charged as finance 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 profit or loss account.
3.4. Intangible Assets
Intangible assets are stated at cost less provisions for amortization and impairments. Licenses, patents, know-how and marketing rights
acquired are recorded at cost. Additionally, the cost software for internal use is capitalized as intangible assets where the software supports
a significant business system, and the expenditure leads to the creation of a durable asset. Also, the research and development expenditures
that are definite to yield benefit to the Company are capitalized. All intangible assets are amortized over their estimated useful lives using
the straight-line method.
3.5. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another
entity. Financial Instruments comprise Financial Assets and Financial Liabilities which are recognized, classified, measured, and reported
following IFRS-9: Financial Instruments.
3.5.1. Financial assets
Financial assets of the Company include cash and cash equivalents, accounts receivable, other receivables and investments in marketable
securities.
The Company initially recognizes receivable on the date they are originated. All others financial assets are recognized initially on the date
at which the Company becomes a party to the contractual provisions of the transaction. The Company derecognizes a financial asset
when, and only when the contractual rights or probabilities of receiving the cash flows from the asset expire or it transfer the rights to
receive the contractual cash flows on the financial asset in a transaction in which substantially all the risk and rewards of ownership of
the financial asset are transferred.
3.5.1. (a) Accounts Receivable
Accounts receivable are created at invoiced amount less any provisions for doubtful debts. Provisions are made where there is
evidence of a risk of non-payment, taking into account aging, previous experience and general economic conditions. When an accounts
receivable is determined to be uncollectible it is written off, firstly against any provision available and then to the profit and loss
account. Subsequent recoveries of amounts previously provided for are credited to the profit or loss account.
3.5.1. (b) Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, in transit and with banks on current and deposit accounts which are held and
available for use by the Company without any restriction. There is insignificant risk of change in value of the same.
3.5.1. (c) Investment in Shares
Investment in shares of listed company is valued at a price quoted in the stock exchange at year end. Investment in other shares is
valued at cost.
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3.5.2. Financial Liability
Financial liabilities are recognized initially on the transaction date at which the Company becomes a party to the contractual provisions
of the liability. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire.
Financial liabilities include payable for expenses, liability for capital expenditure and other current liabilities.
3.6. Impairment
3.6.1. Financial Assets
Accounts receivable and other receivables are assessed at each reporting date to determine whether there is any objective evidence of
impairment. Financial assets are impaired if objective evidence indicates that a loss event has occurred after the initial recognition of
the asset and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets are impaired can include default or delinquency by a debtor, indications that a debtor or issuer
will enter bankruptcy etc.
3.6.2. Non-Financial Assets
An asset is impaired when its carrying amount exceeds its recoverable amount. The Company assesses at each reporting date whether
there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of
the asset. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Carrying amount of
the assets is reduced to its recoverable amount by recognizing an impairment loss if, and only if, the recoverable amount of the asset
is less than its carrying amount. Impairment loss is recognized immediately in profit or loss unless the asset is carried at revalued
amount. Any impairment loss of a revalued asset shall be treated as a revaluation decrease.
3.7. Inventories
Inventories are carried at the lower of cost and net realizable value as prescribed by IAS 2: Inventories. Cost is determined on weighted
average basis. The cost of inventories comprises of expenditure incurred in the normal course of business in bringing the inventories to
their present location and condition. Net realizable value is based on estimated selling price less any further costs expected to be incurred
to make the sale.
3.8. Provisions
A provision is recognized in the statement of financial position when the Company has a legal or constructive obligation as a result of a past
event. It is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Provision is ordinarily measured at the best estimate of the expenditure required to settle the present obligation at
the date of statement of financial position. Where the effect of time value of money is material, the amount of provision is measured at the
present value of the expenditures expected to be required to settle the obligation.
3.9. Income Tax Expense
Income tax expense comprises of current and deferred tax. Income tax expense is recognized in the Statement of Profit or Loss and Other
Comprehensive Income and accounted for in accordance with the requirements of IAS 12: Income Taxes.
Current Tax
Current tax is the expected tax payable on the taxable income for the year, and any adjustment to tax payable in respect of previous
years. The Company qualifies as a “Publicly Traded Company” and as such the applicable Tax Rate is 22.5%. However, the applicable
Tax Rate for profit generated from export is 12%. Additionally, income from certain other sources are taxed at rates different from the
standard rate. Further details are available in Note: 34
Deferred Tax
The Company has recognized deferred tax using balance sheet method in compliance with the provisions of IAS 12: Income Taxes. The
Company’s policy of recognition of deferred tax assets/ liabilities is based on temporary differences (Taxable or deductible) between the
carrying amount (Book value) of assets and liabilities reported in the Financial Statements and its tax base, and accordingly, deferred
tax income/expenses are recognized as profit or loss.
A deferred tax asset is recognized to the extent where probable future taxable profit will be available against which temporary
differences can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent the related tax benefit
is unrealizable.
3.10. Other Income
Dividend
Cash dividend income on investment in shares is recognized on approval of the said dividend by the declaring company in their annual
general meeting. Stock dividend income (Bonus Shares) is not considered as revenue.
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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 satisfied and the right to claim the incentive is established.
Royalty
Royalty income is accounted for on accrual basis on fulfillment of the terms laid down in the agreement between the contracting
parties.
Distribution Commission Income
Distribution Commission Income is recognized on an accrual basis.
3.11. Borrowing Cost
Borrowing costs are recognized as expenses in the period in which they are incurred except those that qualifies for capitalization under
IAS 23: Borrowing Costs.
3.12. Employee Benefits
The Company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The eligibility is
determined according to the terms and conditions set forth in the respective deeds complying applicable laws.
The Company has accounted for and disclosed employee benefits in compliance with the provisions of IAS 19: Employee Benefits. The
cost of employee benefits is charged off as revenue expenditure in the period to which the contributions relate. The Company’s employee
benefits include the following:
3.12.1. Defined Contribution Plan (Provident Fund)
The Company has a recognized provident fund scheme (Defined Contribution Plan) for employees of the company eligible to be
members of the fund in accordance with the rules of the provident fund constituted under an irrevocable trust. Employees contribute
10% of their basic salary to the provident fund along with the Company that makes an equal contribution.
The Company recognizes contribution to defined contribution plan as an expense when an employee has rendered services in exchange
for such contribution. The legal and constructive obligation is limited to the amount it agrees to contribute to the fund.
3.12.2. Defined Benefit 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 Benefits, such valuation is not likely to yield a result significantly different from the
current provision.
3.12.3. Contribution to Workers’ Profit Participation and Welfare Funds (WPPF)
This represents 5% of net profit before tax (after charging such expenses) contributed by the Company as per provisions of the
Bangladesh Labor (amendment) Act 2013 and is payable to workers as defined in the said law.
3.12.4. Short-term Employee Benefits
Short-term Employee Benefits include salary, bonus and other allowances. Obligations for such benefits are measured on an
undiscounted basis and are expensed as the related service is availed.
3.12.5. Insurance Scheme
Employees of the Company are covered under insurance schemes.
3.13. Share Premium
The Share Premium is utilizable in accordance with the provisions of the Companies Act, 1994 and as per direction of the Securities and
Exchange Commission.
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.
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3.15. Earnings per Share (EPS)
This has been calculated in compliance with the requirements of IAS 33: Earnings Per Share dividing the basic earnings by the weighted
average number of ordinary shares outstanding during the year.
Diluted Earnings per Share
No diluted EPS is required to be calculated for the year as there was no scope for dilution during the year under review.
3.16. Foreign Currency Transactions
Foreign currency transactions are recorded at the applicable rates of exchange ruling at the transaction date.
The monetary assets and liabilities, if any, denominated in foreign currencies at the financial position date are translated at the applicable
rates of exchanges ruling at that date. Exchange differences are charged off as revenue expenditure in compliance with the provisions of
IAS 21: The Effects of Changes in Foreign Exchange Rates.
3.17. Statement of Cash Flows
The Statement of Cash Flows has been prepared in accordance with the requirements of IAS 7: Statement of Cash Flows. The cash
generated from operating activities has been reported using the Direct Method.
3.18. Events after The Reporting Period
Events after the reporting period that provide additional information about the Company’s position at the date of Statement of Financial
Position or those that indicate that the going concern assumption is not appropriate are reflected in the financial statements. Events after
reporting period that are not adjusting events are disclosed in the notes when material.
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4 . Property, Plant and Equipment
As on June 30, 2023
Particulars
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Amount in Taka
Total
Property Plant &
Equipment
Cost
As on July 01, 2022
Additions
Transferred from Right-of-use Asset
Transferred in & Capitalized
Disposal during the Year
3,343,741,442
309,024,540
-
-
-
15,170,175,656
1,905,236
-
123,288,931
-
26,056,751,981
81,028,605
-
114,500,800
(829,000)
483,024,431
115,682,565
-
18,778,132
(9,746,278)
776,181,432
-
62,708,000
-
(22,899,200)
758,555,571
24,935,276
-
5,308,922
-
46,588,430,513
532,576,222
62,708,000
261,876,785
(33,474,478)
Cost as on June 30, 2023
3,652,765,982
15,295,369,823
26,251,452,386
607,738,850
815,990,232
788,799,769
47,412,117,042
Accumulated Depreciation
As on July 01, 2022
Depreciation Charged
Transferred from Right-of-use Asset
Adjustment for Assets Disposed off
Accumulated Depreciation as on June
30, 2023
-
-
-
-
-
2,558,680,562
337,297,216
-
-
7,669,003,574
1,125,070,985
-
(653,434)
165,834,945
29,526,071
-
(7,715,077)
637,478,804
27,456,664
46,269,474
(21,479,894)
459,779,614
44,725,839
-
-
11,490,777,499
1,564,076,775
46,269,474
(29,848,405)
2,895,977,778
8,793,421,125
187,645,939
689,725,048
504,505,453
13,071,275,343
Net Book Value June 30, 2023
3,652,765,982
12,399,392,045
17,458,031,261
420,092,911
126,265,184
284,294,316
34,340,841,699
Capital Work in Progress 4 (a)
Carrying Value as on June 30, 2023
As on June 30, 2022
Particulars
Cost
As on July 01, 2021
Additions
Transferred from Right-of-use Asset
Transferred in & Capitalized
Disposal during the Year
1,795,464,784
36,136,306,483
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Property Plant &
Equipment
3,343,741,442
-
-
-
-
7,801,663,669
146,850,857
-
7,221,661,130
-
15,543,388,034
400,709,986
-
10,160,501,871
(47,847,910)
300,331,969
87,932,769
-
95,401,914
(642,221)
664,903,347
-
130,522,554
-
(19,244,469)
623,298,907
41,517,297
-
93,739,367
-
28,277,327,368
677,010,909
130,522,554
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
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
259,835,485
-
-
6,859,650,317
849,632,109
-
(40,278,852)
148,109,673
18,331,605
-
(606,333)
520,577,823
28,180,786
104,543,070
(15,822,875)
423,208,721
36,570,893
-
-
10,250,391,611
1,192,550,878
104,543,070
(56,708,060)
2,558,680,562
7,669,003,574
165,834,945
637,478,804
459,779,614
11,490,777,499
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
Capital Work in Progress 4 (a)
Carrying Value as on June 30, 2022
614,578,073
35,712,231,087
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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
Office Equipment
Closing Balance
June 30, 2023
Amount in Taka
June 30, 2022
614,578,073
16,309,574,340
1,442,763,496
2,057,341,569
261,876,785
123,288,931
114,500,800
18,778,132
5,308,922
1,876,308,015
18,185,882,355
17,571,304,282
7,221,661,130
10,160,501,871
95,401,914
93,739,367
1,795,464,784
614,578,073
4 (b). Right of use Assets
As on June 30, 2023
Cost
As on July 01, 2022
Additions
Transferred to Freehold Assets
Cost as on June 30, 2023
Accumulated Depreciation
As on July 01, 2022
Depreciation Charged
Transferred to Freehold Assets
Particulars
Property
Vehicle
Total Right-of-use
Assets
114,163,530
612,128,090
-
-
67,077,308
(62,708,000)
726,291,620
67,077,308
(62,708,000)
114,163,530
616,497,398
730,660,928
1,268,486
159,946,461
161,214,947
7,526,351
90,436,326
(46,269,474)
97,962,677
(46,269,474)
Accumulated Depreciation as on June 30, 2023
8,794,837
204,113,313
212,908,150
Net Book Value June 30, 2023
105,368,693
412,384,085
517,752,778
As on June 30, 2022
Particulars
Cost
As on July 01, 2021
Additions
Transferred to Freehold Assets
Cost as on June 30, 2022
Accumulated Depreciation
As on July 01, 2021
Depreciation Charged
Transferred to Freehold Assets
Property
Vehicle
Total Right-of-use
Assets
-
520,397,410
114,163,530
222,253,234
520,397,410
336,416,764
-
(130,522,554)
(130,522,554)
114,163,530
612,128,090
726,291,620
-
200,512,561
200,512,561
1,268,486
63,976,970
65,245,456
-
(104,543,070)
(104,543,070)
Accumulated Depreciation as on June 30, 2022
1,268,486
159,946,461
161,214,947
Net Book Value June 30, 2022
112,895,044
452,181,629
565,076,673
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4 (c). Revaluation Surplus
Opening Balance
Adjustment for Depreciation on Revalued Assets
Adjustment for Deferred Tax on Revalued Assets
5. Intangible Assets
Amount in Taka
June 30, 2023
June 30, 2022
1,116,896,688
1,121,824,646
(5,634,546)
1,267,772
(6,358,656)
1,430,698
1,112,529,914
1,116,896,688
Particulars
Marketing Rights &
Product Development
ERP and Software
Total
Cost
As on July 01, 2022
Disposal during the Year
Addition / Transferred in & Capitalized
As on June 30, 2023
Amortization
As on July 01, 2022
Amortized During the year
As on June 30, 2023
Net Book Value June 30, 2023
Capital Work in Progress 5 (a)
Carrying Value as on June 30, 2023
Net Book Value June 30, 2022
Capital Work in Progress as on June 30, 2022
Carrying Value as on June 30, 2022
5 (a). Capital Work in Progress is arrived at as follows :
Opening Balance
Addition during the year
Transferred & Capitalized
Closing Balance
926,887,625
(67,725,000)
36,203,786
200,485,371
1,127,372,996
-
(67,725,000)
58,043,784
94,247,570
895,366,411
258,529,155
1,153,895,566
320,973,012
51,383,493
372,356,505
53,444,604
374,417,616
23,337,384
74,720,877
76,781,988
449,138,493
523,009,906
181,747,167
704,757,073
523,009,906
181,747,167
1,064,072,514
359,315,441
605,914,613
147,040,767
752,955,380
605,914,613
147,040,767
919,805,743
166,850,363
June 30, 2023
June 30, 2022
166,850,363
164,695,027
228,668,864
115,885,248
395,519,227
280,580,275
36,203,786
113,729,912
359,315,441
166,850,363
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6. Investment in Subsidiaries
Nuvista Pharma Ltd.
Beximco Pharma API Ltd.
Synovia Pharma PLC
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June 30, 2023
June 30, 2022
2,125,186,000
2,125,186,000
19,999,900
19,999,900
4,766,635,704
4,766,635,704
6,911,821,604
6,911,821,604
a. The Company holds 10,013,474 shares representing 85.2% of the Paid Up Capital of Nuvista Pharma Ltd (NPL) and 1,963,241 shares
representing 54.6% of the Paid Up Capital of Synovia Pharrma PLC (SPP). Beximco Pharma API Limited is a fully owned subsidiary.
b. Investment in subsidiary is accounted for using cost method as per IAS 27: Separate Financial Statements, in preparing financial statements
of the Company.
7. Investment in Associates
This represents 3,900,000 Ordinary Shares of Malaysian Ringgit (RM) 1 each issued by BioCare Manufacturing Sdn Bhd (“BioCare”), Malaysia.
Beximco Pharma received 30% of the equity share of the Malaysian based company for providing full technical support to set up a manufacturing
facility to produce specialized pharmaceutical products in Seri Iskandar Pharmaceutical Park, Perak, Malaysia. BioCare is considered to be an
associate of BPL as per IAS 28: Investment in Associates and Joint Ventures. The Company follows Cost method for the investment as per IAS 27:
Separate Financial Statements.
8. Other Investments
Bangladesh Export Import Co. Ltd.
Central Depository Bangladesh Ltd. (CDBL)
Amount in Taka
June 30, 2023
June 30, 2022
Number of
Share
Value
Number of
Share
Value
167,854
19,403,922
167,854
21,787,449
571,182
1,569,450
571,182
1,569,450
20,973,372
23,356,899
a. The shares of Bangladesh Export Import Co. Ltd. are listed on Dhaka and Chittagong Stock Exchanges. The market value of each share of
Bangladesh Export Import Co. Ltd. as on June 30, 2023 was Tk. 115.60 (June 30, 2022: Tk.129.80). The fair value Loss of Tk. 2,383,527 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.
9. Inventories
This consists of:
Finished Goods
Work in Process
Raw Materials
Packing Materials
Laboratory Chemicals
Physician Samples
R & D Materials
Materials in Transit
June 30, 2023
June 30, 2022
2,654,584,197
1,754,268,113
803,580,144
3,987,274,966
1,206,041,708
102,921,941
113,354,964
43,029,486
1,040,551,120
9,951,338,526
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
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10. Spares & Supplies
This consists of:
Spares & Accessories
Stock of Stationery
Literature & Other Materials
11. Accounts Receivable
This consists of :
Trade Receivable
Other Receivable
Amount in Taka
June 30, 2023
June 30, 2022
605,606,518
19,049,051
136,929,608
761,585,177
543,228,366
20,974,250
100,506,867
664,709,483
3,145,804,428
2,475,650,151
476,819,616
264,122,292
3,622,624,044
2,739,772,443
Accounts Receivable is reported net of provision for bad debts of Tk. 13,172,086. It includes an amount of Tk. 1,071,490,950, equivalent USD
10,013,934 (June 30, 2022: Tk. 1,016,268,270, equivalent USD 11,821,851) 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. 1,435,857,890 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.1,445,757,890 on April 30, 2023. Additionally, Tk 14,531,441, Tk
160,092,598 and Tk 745,350 are 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 officers of the company and any of them severally or jointly with
any other person.
Aging of Trade Receivables :
Amount due within 6 months
Amount due for 6 months & above
12. Loans, Advances and Deposits
This is unsecured, considered good and consists of :
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 Office
Others
2,984,345,190
161,459,238
Amount in Taka
2,354,175,678
121,474,473
3,145,804,428
2,475,650,151
140,516,040
508,850,046
10,957,809
171,677,678
2,133,040
775,239,192
19,849,064
106,942,014
39,161,704
142,172,413
464,428,527
46,340,198
71,228,285
139,852,809
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
2,639,348,819
2,510,263,322
a. The maximum amount due from the employees during the year was Tk. 107,987,586 on November 2022
b. No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally or jointly
with any other person, except as stated above.
164 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
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13. Cash and Cash Equivalents
This consists of:
a. Cash in Hand (including Imprest Cash)
b. Cash at Bank :
Current & FC 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
June 30, 2023
Amount in Taka
June 30, 2022
529,658,970
279,392,725
408,990,289
938,649,259
536,831,364
816,224,089
10,000,000,000
10,000,000,000
5,000,000,000
5,000,000,000
15,000,000,000
15,000,000,000
b. Issued, Subscribed and Paid-up :
June 30, 2023
June 30, 2022
51,775,750 Shares fully Paid-up in Cash
357,093,942 Ordinary Shares issued as Stock Dividend
5,951,250 Ordinary Shares issued in exchange of Shares of Beximco Infusions Ltd.
31,291,147 Ordinary Shares issued on conversion of Preference Shares
517,757,500
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 Pharma 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 on AIM of London Stock Exchange.
c. Composition of Shareholding :
Sponsors/Directors:
A S F Rahman
Salman F Rahman
Other Directors and Associates
Other Shareholdings:
Foreign Portfolio Investors (DSE/CSE)
Holders of GDRs (excluding Board Director)
Institutions (ICB, ICB Investors’ Accounts & Others)
Individual Shareholders
Total
June 30, 2023
June 30, 2022
Number of
Shares
% of Share
Capital
Number of
Shares
% of Share
Capital
9,058,888
9,080,095
116,305,973
134,444,956
44,433,722
84,386,054
106,355,109
76,492,248
311,667,133
446,112,089
2.03
2.04
26.07
30.14
9.96
18.92
23.83
17.15
69.86
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
2.03
2.04
26.07
30.14
9.69
18.92
21.86
19.39
69.86
100.00
446,112,089
100.00
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d. Distribution Schedule of Ordinary Shares:
Range of
Shareholdings
In number of shares
1 to 499
500 to 5,000
5,001 to 10,000
10,001 to 20,000
20,001 to 30,000
30,001 to 40,000
40,001 to 50,000
50,001 to 100,000
100,001 to 1,000,000
Over 1,000,000
June 30, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Number of
Shareholders
% of
Holding
Number of
Shareholders
% of
Holding
Number of
Shares
% of
Holding
Number of
Shares
% of
Holding
41,903
76.66%
10,465
19.15%
76.11%
4,268,126
19.45%
15,819,525
984
530
201
126
67
154
208
24
1.80%
0.97%
0.37%
0.23%
0.12%
0.28%
0.38%
0.04%
100%
41,440
10,587
1,042
560
209
113
70
166
221
38
0.96%
3.56%
1.61%
1.73%
1.13%
0.99%
0.68%
2.56%
4,189,826
16,225,509
7,545,996
8,156,027
5,180,289
3,949,472
3,225,851
12,079,301
0.94%
3.64%
1.69%
1.89%
1.16%
0.88%
0.72%
2.71%
7,194,582
7,699,156
5,035,520
4,415,006
3,028,518
11,436,351
1.91%
1.03%
0.38%
0.21%
0.13%
0.30%
0.41%
64,445,367
14.45%
66,057,769
14.80%
0.07% 322,769,938
72.35%
319,502,049
71.57%
54,446
100% 446,112,089
100% 446,112,089
100%
Total
54,662
e. Market Price of Ordinary Shares:
The shares of the Company are listed on Dhaka and Chittagong Stock Exchanges of Bangladesh while its GDRs on AIM of London Stock Exchange.
Price of each Share/ GDR on the last working day of the fiscal year were:
Dhaka Stock Exchange
Chittagong Stock Exchange
AIM
June 30, 2023
June 30, 2022
Tk.
Tk.
GBP
146.20
145.70
0.355
154.60
155.30
0.705
f. Option on unissued Ordinary Shares :
There is no option on unissued shares as on June 30, 2023.
15. Excess of Issue Price over Face Value of GDRs
This represents excess of issue price of GDRs over the face value of underlying 28,175,750 ordinary shares issued against the same number of
GDRs less GDRs issue expenses.
16. Long Term Borrowings - Net of Current Maturity
This is arrived at as follows :
Project Loan - ODDO BHF SE, Frankfurt, Germany
Term Loan-Agrani Bank
Lease Liability
June 30, 2023
Amount in Taka
June 30, 2022
236,117,255
670,863,306
1,915,856,341
2,313,748,864
357,442,368
2,509,415,964
416,925,245
3,401,537,415
a. Project Loan - ODDO BHF SE, Frankfurt, Germany
This represents part of foreign currency loan of Euro 19.05 million taken for the expansion and diversification project being implemented by
the Company. Interest for this loan is 6 month’s EURIBOR plus 1.30% per annum. The loan is secured negative pledge against machinery and
equipment procured under the pertinent loan.
b. Term Loan-Agrani Bank
The Company availed a Term Loan of Taka 3,750 million from Agrani Bank Limited to partly finance the acquisition of Synovia Pharma PLC. The
Loan is secured by a lien on the aquired shares of Synovia Pharma plc.
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c. Lease Liability
This consists of:
Payable in one year
Payable beyond 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
Transfer In
Interest Received during the year
Paid to Employees during the year
June 30, 2023
Amount in Taka
June 30, 2022
129,655,023
357,442,368
487,097,391
140,769,847
416,925,245
557,695,092
1,384,751,512
1,213,933,757
238,017,009
215,143,980
1,622,768,521
1,429,077,737
(59,933,297)
(44,326,225)
1,562,835,224
1,384,751,512
57,318,375
10,000,000
623,658
67,942,033
(59,933,297)
8,008,736
40,000,000
60,000,000
1,644,600
101,644,600
(44,326,225)
57,318,375
Closing Balance
1,554,826,488
1,327,433,137
b. Workers Profit Participation and Welfare Fund
1,289,457,558
2,844,284,046
1,155,413,511
2,482,846,648
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
2,427,208,876
1,871,974,397
58,255,886
(1,267,772)
556,665,177
(1,430,698)
2,484,196,990
2,427,208,876
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19. Short Term Borrowings
Janata Bank Limited
AB Bank Limited
First Security Islamic Bank Limited
Loan from Nuvista Pharma
Liability for UPAS Letter of Credit
Amount in Taka
June 30, 2023
June 30, 2022
4,474,809,399
4,817,103,014
505,552,356
497,141,234
400,000,000
269,132,312
409,733,361
492,341,234
-
644,508,608
6,146,635,301
6,363,686,217
a. Short term borrowings from Janata Bank represents revolving credit facilities renewable annually.
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 fixed and floating assets of the Company excepting the machinery and
equipment financed by ODDO BHF SE, 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 fixed and floating assets of the
Company excepting the machinery and equipment financed by ODDO BHF SE, Frankfurt, Germany.
e. Applicable Interest rate on working capital borrowings during the year was 9% compounding quarterly while the short term borrowing from the
subsidiary Nuvista Pharma carries 8% interest paybale quarterly.
20. Long Term Borrowings-Current Maturity
Project Loan - ODDO BHF SE, 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:
For Expenses
Workers’ Profit Participation and Welfare Funds - (current year)
23. Dividend Payable / Unclaimed Dividend
621,801,668
664,500,000
129,655,023
938,924,362
960,000,000
140,769,847
1,415,956,691
2,039,694,209
801,452,349
1,450,986,422
149,408,697
308,098,008
807,139,594
886,263,961
110,410,808
104,650,607
2,709,945,476
1,908,464,970
332,227,456
294,866,618
627,094,074
239,586,696
336,827,179
576,413,875
The Dividend Payable/Unclaimed dividend as on June 30, 2023 consists of Tk. 15,477,101 relating to year 2021-22 which has been paid but
not yet claimed. The remaining balance relates to dividend for prior years unclaimed to date. During the year an amount of Tk. 13,786,791 of the
unclaimed dividend outstanding for more than 3 years has been paid to the Capital Market Stabilization Fund (CMSF) following the directives of
the Bangladesh Securities and Exchange Commission.
168 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
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Opening Balance
Provision for current year
Short provision for prior year(s)
Income Tax Paid
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June 30, 2023
June 30, 2022
91,665,863
1,239,940,051
11,127,508
1,342,733,422
(915,419,404)
427,314,018
220,441,435
914,346,139
104,188,621
1,238,976,195
(1,147,310,332)
91,665,863
25. Net Sales Revenue
July 2022 - June 2023
July 2021 - June 2022
Domestic Sales
Export Sales
30,238,890,754
27,553,566,457
2,752,964,666
2,667,165,191
32,991,855,420
30,220,731,648
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
Quantity
Unit
July 2022 - June 2023
July 2021 - June 2022
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
7,672.74
144.87
67,532
179,448
7,988.60
152.80
121,022
258,829
b. The value of Export Sales in equivalent US Dollar is 27,330,603 in 2022-23 as against US Dollar 31,274,602 in 2021-22.
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
Unit
Million pcs.
Million pcs.
Kg
610,859,802
14,992,146,672
4,935,917,537
20,538,924,011
(803,580,144)
19,735,343,867
1,754,268,113
21,489,611,980
(363,610,489)
(2,654,584,197)
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)
18,471,417,294
16,507,965,726
Quantity
June 30, 2023
June 30, 2022
1,152.63
13.98
13,913
699.14
13.61
4,162
Total Value Taka
2,654,584,197
1,754,268,113
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27. Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
28. Factory Overhead
Salaries and Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Registration & Renewals
Travelling & Conveyance
Entertainment
Research and Development
Rent
Printing & Stationery
Telephone, Cellphone, Internet & Postage
Toll Expense
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Security Expenses
Other Expenses
July 2022 - June 2023
July 2021 - June 2022
Amount in Taka
5,389,571,553
4,173,915,422
14,898,813,734
14,854,032,886
(5,296,238,615)
(5,389,571,553)
14,992,146,672
13,638,376,755
1,665,111,045
1,484,594,001
429,242,602
42,328,137
5,960,026
8,470,371
35,736,593
1,043,698
432,152,866
40,024,639
5,687,728
6,264,023
39,995,731
3,314,819
318,736,340
303,847,832
9,628,020
21,034,294
8,854,188
280,195,247
476,067,335
12,216,914
28,630,624
7,835,447
30,189,536
11,175,180
249,432,471
248,709,658
11,097,180
8,645,632
1,560,048,243
1,138,305,681
24,916,985
7,696,875
27,415,344
11,809,931
4,935,917,537
4,060,497,699
a. Salaries and Allowances include Company’s Contribution to provident fund amounting to Tk. 32,191,727
b. Repairs and Maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures. Also included
therein, imported stores and spares that has been consumed during the year.
c. Other expenses does not include any item exceeding 1% of total revenue.
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29. Administrative Expenses
Salaries and Allowances
Rent
Repairs & 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 & AGM Expense
Municipal Tax & Land Revenue
Training & Conference
Depreciation
Meeting Fee
Security Expenses
Other Expenses
July 2022 - June 2023
July 2021 - June 2022
Amount in Taka
525,328,018
471,393,956
27,191,452
79,568,159
5,872,324
29,821,643
8,842,194
3,984,294
2,200,000
4,486,544
20,740,321
27,972,378
-
45,510,222
565,340
12,840,870
40,796,484
2,505,800
19,938,432
45,488,559
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
903,653,034
881,516,329
a. Salaries and Allowances include Company’s Contribution to provident fund amounting to Tk.10,886,301
b. Repairs & maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
c. Meeting Fee is paid to the Directors for attending Board and other Committee Meetings.
d. Other expenses does not include any item exceeding 1% of total revenue.
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30. Selling, Marketing and Distribution Expenses
Salaries and Allowances
Rent
Repairs & 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 & 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 2022 - June 2023
July 2021 - June 2022
Amount in Taka
2,498,739,741
2,278,252,477
151,801,583
51,332,512
661,523,842
79,309,202
52,486,520
89,590,784
31,653,863
24,607,743
82,785,246
182,172,504
27,066,247
423,097,133
440,081
55,498,404
330,962,450
182,943,502
9,933,118
170,392,623
7,538,568
27,098,354
2,910,043
24,633,191
275,783,634
144,905,253
143,336,060
613,597,539
491,888,971
135,915,602
20,398,163
2,524,220
13,148,302
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
7,010,014,998
6,237,421,187
a. Salaries and Allowances include Company’s Contribution to provident fund amounting to Tk. 53,051,780
b. Distribution Commission is paid to I & I Services Ltd., a “ Related Party” for rendering distribution services throughout the country.
c. Repairs and Maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
d. Sample Expense includes VAT on sample.
e. Other expenses does not include any item exceeding 1% of total revenue.
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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
Profit/(Loss) on Sale of Fixed Assets (Note 41)
July 2022 - June 2023
July 2021 - June 2022
Amount in Taka
205,684
41,985,413
88,455,727
355,890,287
267,842,723
66,693,332
-
605,926
-
10,366,617
832,045,709
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
1,456,174,446
a. The Distribution Commission is received from the subsidiary company Nuvista Pharma Limited & Synovia Pharma PLC for the delivery of
products using BPL’s distribution network across the country as per the agreement entered into between the companies on an arm’s length basis.
b. Government provides 10% incentives on net FOB value of export of finished pharmaceutical formulation products subject to fulfillment of certain
conditions. The incentive claimed during the reporting period has been accrued and accounted for. Further details are available in Note 3.10.
c. Exchange rate fluctuation losses has been netted off with the exchange rate fluctuation gains. An exchange loss of Tk. 233,844,494 has arisen
from the translation of outstanding foreign currency loan translated at the exchange rate prevailing on the financial 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
852,970,585
52,360,188
300,393,065
40,892,994
1,246,616,832
662,823,473
42,741,408
199,775,709
71,291,503
976,632,093
This represents statutory contribution by the Company as per Bangladesh Labour Act 2013. The amount is computed @ 5% of net profit before
tax (after charging such contribution).
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34. Income Tax Expenses
This consists of as follows :
a. Current Tax
Provision for current year
Short provision for prior year(s)
b. Deferred Tax Expense
Total
Deferred Tax Expense 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 profit or Loss and Other Comprehensive Income
July 2022 - June 2023
July 2021 - June 2022
Amount in Taka
1,239,940,051
11,127,508
1,251,067,559
58,255,886
1,309,323,445
914,346,139
104,188,621
1,018,534,760
556,665,177
1,575,199,937
12,608,874,084
(1,554,826,488)
(13,172,086)
12,125,676,008
(1,327,433,137)
(10,647,866)
11,040,875,510
10,787,595,005
22.5%
2,484,196,990
2,427,208,876
56,988,114
1,267,772
58,255,886
22.5%
2,427,208,876
1,871,974,397
555,234,479
1,430,698
556,665,177
Reconciliation of Effective tax rate
Profit before Tax
Applicable Tax
Effect of lower rate on Export Profit excluding Cash Incentive
Effect of lower rate on cash incentive
Effect of lower rate on dividend income
Effect of permanent disallowances
Short provision of prior year
Deferred tax impact
Income Tax Expense
a. Export Profits are subject to 12% Tax rate
2022-23
2021-22
%
Tk.
%
Tk.
5,897,332,353
6,736,543,580
22.50% 1,326,899,779
22.50%
1,515,722,306
-1.03%
-0.57%
-0.02%
1.10%
0.19%
0.02%
(60,689,630)
(33,480,340)
(1,049,635)
65,107,667
11,127,508
1,408,096
-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
22.20% 1,309,323,445
23.38% 1,575,199,937
b. 10% Tax deductible at source on the cash incentives are treated as final tax liability on such income as per the Income Tax regulations.
c. Dividend Income is taxable @ 20%
35. Other Comprehensive Income - Unrealized Gain/(Loss)
Fair Value Gain/(Loss) on Investment in Listed Shares
July 2022 - June 2023
July 2021 - June 2022
(2,383,527)
(2,383,527)
6,764,517
6,764,517
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July 2021 - June 2022
Amount in Taka
36. Earnings Per Share (EPS)
a. Earnings attributable to the Ordinary Shareholder
4,588,008,908
5,161,343,643
b. Weighted average number of shares outstanding during the year (Note 3.15)
446,112,089
446,112,089
Earnings Per Share (EPS)
10.28
11.57
37. Net Asset Value (NAV) Per Share
Total Assets
Less Total Liabilities
Net Assets
Number of Shares
Net Asset Value (NAV) Per Share
June 30, 2023
June 30, 2022
62,593,798,296
59,694,627,089
(19,252,559,154)
(19,378,888,788)
43,341,239,142
40,315,738,301
446,112,089
446,112,089
97.15
90.37
July 2022 - June 2023
July 2021 - June 2022
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)
5,782,185,344
5,027,964,667
446,112,089
446,112,089
12.96
11.27
39. Reconciliation of Net Profit with Cash Flows from Operating Activities
Profit after Tax
4,588,008,908
5,161,343,643
Adjustment to reconcile net profit to net cash provided by operating activities :
Non-cash/ Non-operating items:
Depreciation
Amortization
Deferred tax
Exchange rate fluctuation (Gain)/loss
Dividend Income
(Profit) /Loss on sale of Fixed Assets
Effect of exchange rate changes on Cash and Cash Equivalents
Changes in working Capital
(Increase)/Decrease in Inventories
(Increase)/Decrease in Spares & Supplies
(Increase)/Decrease in Accounts Receivable
(Increase)/Decrease in Loans, Advances & Deposits
Increase/(Decrease) Gratuity & WPPF
Increase/(Decrease) in Creditors and Other Payables
Increase/(Decrease) in Accrued Expenses
Increase/(Decrease) in Income Tax Payable
Net cash Generated from Operating Activities
1,916,941,494
1,662,039,452
74,720,877
58,255,886
233,844,494
(41,985,413)
(10,366,617)
(59,567,185)
1,786,726,922
1,257,796,334
70,445,352
556,665,177
20,837,952
(71,517,955)
(2,136,970)
(45,362,968)
(722,765,058)
(1,920,105,898)
(1,149,298,500)
(96,875,694)
(882,851,601)
(149,784,517)
361,437,398
808,279,502
50,680,199
335,648,155
(2,108,146,005)
(42,276,201)
92,096,798
(204,141,220)
295,701,942
79,522,339
95,912,021
(128,775,572)
5,782,185,344
5,027,964,667
Annual Report 2022-23 | Beximco Pharmaceuticals Limited (Stand-alone) | 175
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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:
Balance at year
end
1,435,857,890
Balance Type
Dr.
Cr.
400,000,000
400,000,000
Name of Related Parties
Nature of Transactions
Value of Transaction
a. I & I Services Ltd.
b. Nuvista Pharma Ltd
c. Synovia Pharma PLC
Delivery of Products
Distribution Commission
Short Term Borrowings
Toll Manufacturing Expenses
Cost of Services
Royalty
Dividend
Distribution Commission
Toll Manufacturing
Cost of Goods & Services Purchase
Distribution Commission
35,252,390,952
613,597,539
41,989,696
62,452,672
26,993,787
40,053,896
179,845,848
246,862,902
213,239,237
176,044,439
14,531,441
Dr.
160,092,598
Dr.
Dr.
d. Beximco Pharma API Limited
Short Term Advance
15,520
745,350
The Companies are subject to common control from same source.
41. Particulars of Disposal of Property, Plant and Equipment
The following assets were disposed off during the year ended June 30, 2023:
Particulars of Assets
Cost
Accumulated
Depreciation
Written Down
Value
Sales Price
Profit / (Loss)
Mode of
Disposal
Plant & Machinery
Furniture & Fixtures
Transport & Vehicle
Total
829,000
9,746,278
22,899,200
33,474,478
653,434
7,715,077
21,479,894
29,848,405
175,566
33,750
(141,816)
Negotiation
2,031,201
613,750
(1,417,451)
Negotiation
1,419,306
13,345,190
11,925,884
Negotiation
3,626,073
13,992,690
10,366,617
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
490,733,754
54,492,264
19,552,942
65,796,520
12,603,543
14,291,454
657,470,477
a. The above includes salary, allowances, and perquisites amounting Tk. 73,621,099 paid to the Managing Director.
b. No remuneration is paid to the Directors of the Board other than the meeting attendance fees.
c. No amount of money was expended by the Company for compensating any member of the Board for any special services rendered.
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43. Production Capacity and Utilization
Item
Unit
June 2023
June 2022
July 22 to June 23
July 21 to June 2022
Production Capacity
Actual Production and Capacity Utilization
Quantity
Quantity
Quantity
%
Quantity
%
Tablet, Capsule, Suppository & DPI
Million Pcs
7,592.49
6,481.61
8,033.38
105.81%
7,962.28
122.84%
Liquid, Cream and Ointment, Suspension,
IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable, Inhaler and
Insulin
Million Pcs
153.05
148.74
141.25
92.29%
151.39
101.78%
Active Pharmaceuticals Ingredient
Matric Ton
22.00
22.00
3.42
15.55%
4.48
20.36%
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, 2023.
45. Claim not Acknowledged as Debt
There was no claim against the Company not acknowledged as debt as on June 30,2023.
46. Un-availed Credit Facilities
There is no credit facilities available to the company under any contract, not availed of as on June 30, 2023 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$)
Taka
123,991,836
11,298,051
12,563,824,151
1,157,076,104
Foreign Currency (US$)
Taka
30,770,017
3,106,545,786
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.
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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 filed 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 filed appeal to the honorable High Court against this verdict. Additionally, there are claims of custom duty
aggregating Tk. 22,507,358 against the indemnity bonds issued by the Company in connection with import of certain plant and machinery. The
company has filed 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 final 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 150 Crore for Synovia Pharma. Both the companies are subsidiaries of Beximco Pharma. The liabilities are
primarily securied by fixed and floating 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.
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 2022-23. The dividend proposal
is subject to shareholders’ approval in 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 2022-23. The
proposed dividend is subject to approval of the shareholders of NPL in the forthcoming Annual General Meeting.
c. Board of Directors of Synovia Pharma PLC (SPP) has declared 10% cash dividend (Tk. 10.00 per Share of Tk 100 each) for the year 2022-23.
The proposed dividend is subject to approval of the shareholders of SPP 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 financial statements or notes thereto.
51. Financial Risk Management
The management of company has overall responsibility for the establishment and oversight of the company’s risk management framework. Risk
management policies, procedures and systems are reviewed regularly to reflect changes in market conditions and the company’s activities. The
company has exposure to the following risks for its use of financial instruments.
Credit risk
Liquidity risk
Market risk
51.01 Credit Risk
Credit risk is the risk of a financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the company’s receivables. Management has a credit policy in place and exposure to credit risk is
monitored on an ongoing basis. As at June 30, 2023 substantial part of the receivables are those from its related company and subject to
insignificant credit risk. Risk exposures from other financial assets. i.e. Cash at bank and other external receivables are nominal.
51.02 Liquidity Risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The Company’s approach
to managing liquidity (cash and cash equivalents) is to ensure as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due under both normal and stressed conditions without incurring unacceptable losses or risking damage to the
Company’s reputation. Typically, the Company ensures that it has sufficient cash and cash equivalent to meet expected operational
expenses including financial obligations through preparation of the cash flow forecast with due consideration of timeline of payment of
the financial obligation and accordingly arrange for sufficient liquidity/fund to make the expected payment within due date. In extreme
stressed conditions the Company may avail support from the related companies in the form of short-term financing.
178 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2022-23
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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 financial instruments. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters.
a. Currency risk
The Company is exposed to currency risk on export revenues and import of raw material, machinery and equipment. Most of the
Company’s foreign currency transactions are denominated in USD. Additionally, it has EURO denominated overseas loan. Beximco
Pharma has consistent export revenue earned in foreign currency predominantly in US Dollar. These are utilized for the payment
of its foreign currency obligation including paying for imports of materials. This partly contributes to minimize the currency risk
associated with payments in foreign currency.
b. Interest rate risk
Interest rate risk pertains to the potential impact of fluctuating interest rates on a Company’s borrowing costs. An increase in
interest rate can lead to increased expenses associated with borrowing, which can, in turn, affect the Company’s overall profitability.
For several years, Bangladesh maintained a 9% interest rate cap for corporate loans. However, Bangladesh Bank has recently
introduced a variable interest rate on lending. Under this new framework, the interest on borrowed funds is determined by adding a
3% premium to the six-month weighted average treasury bill rate. This transition in lending policy has introduced a higher degree
of volatility in interest rates.
Moreover, benchmark rates for foreign loans, such as SOFR and EURIBOR, have seen significant increases, making overseas
borrowing more costly and exposing the Company to greater interest rate risk. To mitigate these risks, the Company continuously
monitors the situation and engages in negotiations to secure favorable arrangement to minimize its exposure to interest rate
fluctuations. The company possesses a robust capacity to consistently generate cash flows from its operational activities, enabling
it to avoid unplanned borrowing requirements. Additionally, the Company has established arrangements with banks to facilitate real-
time transfer of sales proceeds into its overdraft account via the RTGS system, thereby minimizing borrowing costs.
The foreign currency loan is subject to floating rates of interest. The company has not entered into any type of derivative instrument
in order to hedge interest rate risk as at the reporting date.
Osman Kaiser Chowdhury
Director
Nazmul Hassan
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Dhaka
October 19, 2023
Annual Report 2022-23 | Beximco Pharmaceuticals Limited (Stand-alone) | 179
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Financial Statements
Nuvista Pharma Limited
For the Year ended June 30, 2023
180 | Nuvista Pharma Limited | Annual Report 2022-23
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DIRECTORS’ REPORT
I am delighted to present, on behalf of the Board of the Company, the Directors’ Report and the audited financial statements for the year ending on
June 30, 2023, along with the accompanying report from the Auditors.
Fiscal year 2022-23 has been exceptionally challenging, marked by macro-economic instability stemming from the global and local crisis. The
economy of Bangladesh was adversely impacted and encountered unprecedented challenges, including the depletion of foreign currency reserves,
resulting in a significant depreciation of the domestic currency against the US Dollar. Following a record 25% depreciation in 2021-22, the Taka
suffered an additional 17% decline in 2022-23, reaching Taka 109.50 against one US Dollar. The country was also grappled with increased energy
costs and high inflation. I am pleased to report that despite the challenging business conditions, Nuvista Pharma has made commendable progress,
successfully achieving its operational targets and delivering positive results.
Financial Performance
The Company achieved a net Sale of TK. 3,033.7 million in FY 2022-23 as against Tk. 2,802.4 million in FY 2021-22, registering a notable 8.3%
year-on-year growth. The Gross Profit increased by 3.2% to reach at TK. 1,485.0 million as against Tk. 1,439.6 million of the prior year. Gross profit
as a percentage of sales however declined to 48.9% from the previous year’s 51.4%, predominantly because of the impact of sharp devaluation of
Taka, rise in energy cost and elevated domestic inflation. The Company earned Operating Profit of Tk. 394.9 million compared to Tk. 463.4 million
in the corresponding prior period. The pre-tax and post-tax profit stood at Tk. 391.3 million and Tk. 264.3 million respectively. The reduced gross
profit margin resulted in a negative growth in our pre and post-tax profit in comparable terms.
The sustained remarkable growth since acquisition, supported by robust cash flows, enabled Nuvista Pharma to become a leverage-free company
with a strengthened balance sheet. This year the Company generated a Net Operating Cash Flow (NOCFPS) of Tk. 441.9 million, a substantial
increase compared to Tk. 243.3 million in the previous year. The Net Asset Value (NAV) per share also increased to Tk. 130.2 from Tk. 109.3 per
share.
The detailed audited financial statements of the Company for the year ended June 30, 2023 is placed along with this report for your approval.
Profit and its Appropriation
Net Profit before tax
Provision for tax
Net Profit after tax
Unappropriated profit from previous year
Payment of dividend
Profit available for appropriation
Recommended for appropriation:
Proposed dividend
Retained Earnings after proposed dividend
Year ended 30 June 2023
Year ended 30 June 2022
Amount in Taka
391,277,889
(127,021,592)
264,256,297
965,366,749
(47,000,640)
1,182,622,406
(47,000,640)
1,135,621,766
447,908,117
(137,073,804)
310,834,313
701,533,076
(47,000,640)
965,366,749
(47,000,640)
918,366,109
Dividend
The Board of Directors recommends 40% cash dividend i.e. Taka 4.00 per share for the year ended 30 June 2023 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
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Reappointment of Managing Director
Mr. S. M. Rabbur Reza, the Managing Director of the Company completed his 5 years term on May 12, 2023. The Board of Directors has reappointed
Mr. Reza for another period of 5 years with effect from May 13, 2023. The matter of his reappointment is now placed for approval of the shareholders
in this AGM.
Retirement and Re-Election of Director
Mr. Mohammad Ali Nawaz, Director of the Company retires by rotation as per Article 125 and 126 of the Articles of Association of the Company and
being eligible, offers himself for re-election as Director. The Board recommends for his reappointment as Director of the Company and the proposal
is now placed for your approval.
Auditors
The existing auditors A. Qasem & Co., Chartered Accountants, who were appointed as auditors of the Company in the 48th AGM of the Company
carried out the audit for the year ended 30 June 2023.
A. Qasem & Co., Chartered Accountants, the auditors of the Company retires at this meeting and have expressed their willingness to continue in
office for the year ended on 30 June 2024 subject to the approval of the shareholders in the 49th 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 2024.
On behalf of the Board,
Nazmul Hassan MP
Chairman
24 September, 2023
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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 financial statements of Nuvista Pharma Limited (the Company), which comprise the statement of financial position as at 30
June 2023, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 30 June 2023, and
its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the
Companies Act 1994 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We
also:
-
-
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
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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 significant doubt on the Company’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that gives a true and fair view.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, we also report the following:
(a)
(b)
(c)
we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of
our audit and made due verification thereof;
in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination
of those books; and
the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in
agreement with the books of account and returns.
A. Qasem & Co.
Chartered Accountants
RJSC Registration No.: 2-PC7202
_____________________________
Mohammad Motaleb Hossain, FCA
Partner
Enrolment Number: 0950
DVC: 2309240950AS614141
Dhaka, 24 September 2023
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Amount in Taka
30 June 2022
1,058,252,911
7,547,385
13,011,840
1,078,812,136
591,585,003
102,889,638
72,751,430
-
180,824,117
948,050,188
2,026,862,324
Notes
30 June 2023
1,093,178,051
26,116,398
11,524,773
1,130,819,222
613,750,701
79,194,346
95,634,587
400,000,000
137,201,008
1,325,780,642
2,456,599,864
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
117,501,600
1,412,207,911
1,529,709,511
117,501,600
1,166,304,413
1,283,806,013
5,743,430
193,019,251
66,298,554
265,061,235
252,918,126
222,857,737
107,227,051
26,772,909
52,053,295
661,829,118
926,890,353
12,815,090
173,210,822
109,628,828
295,654,740
146,988,152
136,174,578
100,392,374
7,783,192
56,063,275
447,401,571
743,056,311
2,456,599,864
2,026,862,324
Nuvista Pharma Limited
Statement of financial position
As at 30 June 2023
ASSETS
Non-current assets
Property, plant and equipment
Capital work-in-progress
Intangible assets
Total non-current assets
Current assets
Inventories
Accounts receivable
Loans, advances and deposits
Short term investment
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
The annexed notes 1 to 35 form an integral part of these financial statements.
Nazmul Hassan
Chairman
S. M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
As per our report of same date
Dhaka, 24 September 2023
A. Qasem & Co.
Chartered Accountants
RJSC Registration No.: 2-PC7202
Mohammad Motaleb Hossain FCA
Enrolment Number: 0950
DVC: 2309240950AS614141
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Nuvista Pharma Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Revenue
Cost of goods sold
Gross profit
General and administration expenses
Selling and distribution expenses
Profit from operations
Non-operating income
Interest expenses
Profit before tax and WPPF
Contribution to WPPF
Profit before tax
Income tax expense
Current tax
Deferred tax income/(expense)
Profit after tax
Other comprehensive income
Notes
30 June 2023
22
23
24
25
26
27
28
28
3,033,677,226
(1,548,646,950)
1,485,030,276
(138,619,310)
(951,502,812)
394,908,154
31,711,678
(15,778,049)
410,841,783
(19,563,894)
391,277,889
(141,704,025)
14,682,433
(127,021,592)
264,256,297
-
Amount in Taka
30 June 2022
2,802,357,818
(1,362,782,151)
1,439,575,667
(115,250,781)
(860,919,037)
463,405,849
11,855,910
(4,958,236)
470,303,523
(22,395,406)
447,908,117
(145,036,508)
7,962,704
(137,073,804)
310,834,313
-
Total comprehensive income for the year
264,256,297
310,834,313
Earnings Per Share (EPS)
22.49
26.45
The annexed notes 1 to 35 form an integral part of these financial statements.
As per our report of same date
Nazmul Hassan
Chairman
S. M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
As per our report of same date
Dhaka, 24 September 2023
A. Qasem & Co.
Chartered Accountants
RJSC Registration No.: 2-PC7202
Mohammad Motaleb Hossain FCA
Enrolment Number: 0950
DVC: 2309240950AS614141
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Nuvista Pharma Limited
Statement of changes in equity
For the year ended 30 June 2023
Particulars
Share capital
General
reserve
Share
premium
Pre-
incorporation
profit
Revaluation
reserve
Retained
earnings
Total reserves
and surplus
Total
Reserves and surplus
Amount in Taka
Balance as at 1 July 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
Transferred from deferred tax
Dividend paid
Profit after tax for the year ended 30
June 2023
28,647,841
28,647,841
28,647,841
(47,000,640)
(47,000,640)
(47,000,640)
264,256,297
264,256,297
264,256,297
Balance as at 30 June 2023
117,501,600
7,511,991
30,844,170
243,737
190,985,607 1,182,622,406
1,412,207,911
1,529,709,511
Number of shares
Net assets value per share
11,750,160
130.19
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
Profit 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
Number of shares
Net assets value per share
12.0
13.0
13.1
13.0
13.2
13.0
13.0
11,750,160
109.26
The annexed notes 1 to 35 form an integral part of these financial statements.
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Nuvista Pharma Limited
Statement of cash flows
For the year ended 30 June 2023
A.
Cash flows 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 flows from investing activities
Purchase of property, plant and equipment
Short term investment
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
C.
Cash flows from financing activities
Proceeds from/(payment to) long term bank borrowings
Proceeds from/(payment to) short term bank borrowings
Dividend paid
Net cash (used in)/from financing activities
D. Net increase/(decrease) in cash and cash equivalents (A+B+C)
E. Opening cash and cash equivalents
F. Effect of exchange rate fluctuation on cash and cash equivalents
Notes
30 June 2023
30 June 2022
Amount in Taka
3,068,159,879
2,771,904,931
(2,511,261,552)
(2,386,536,146)
556,898,327
385,368,785
19 & 27
(11,926,377)
19,612,039
(5,473,551)
2,679,248
26
20
14
17
(122,714,308)
(139,318,215)
441,869,681
243,256,267
(142,605,253)
(400,000,000)
(43,346,746)
-
4,938,230
6,577,717
(537,667,023)
(36,769,029)
(7,071,660)
12,815,090
105,929,974
(46,930,838)
(19,086,695)
(46,898,461)
51,927,476
(53,170,066)
(43,869,866)
153,317,172
180,824,117
27,506,945
246,757
-
G. Closing cash and cash equivalents (D+E+F)
137,201,008
180,824,117
Net operating cash flows per share
37.61
20.70
Number of shares
11,750,160
11,750,160
The annexed notes 1 to 35 form an integral part of these financial statements.
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Nuvista Pharma Limited
Notes to the financial statements
As at and for the year ended 30 June 2023
1. Reporting entity
1.1
Nuvista Pharma Limited (“the Company”) was originally a subsidiary of Netherlands-based Organon International. The Company has
been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. In the post-independent Bangladesh,
it was incorporated as Organon (Bangladesh) Limited under Bangladesh Companies Act as a private limited company. Following the
divestment of Oraganon’s equity to the local management in 2006, the Company was renamed as Nuvista Pharma Limited. In 2011,
the Company, through amendments to its Memorandum and Articles of Association, became a public Limited Company under the
Companies Act 1994.
In 2018, Beximco Pharmaceuticals Limited, a public limited company listed with Bangladesh Stock Exchanges and AIM of London
Stock Exchange, acquired majority shareholdings in Nuvista Pharma Limited. Beximco Pharma, through this acquisition, became the
immediate and ultimate parent of Nuvista Pharma with 85.22% of Nuvista’s equity. Government of Bangladesh holds 12.92% shares
of the Company while the rest is held by other local shareholders.
1.2
The registered office of the Company is located at 17 Dhanmondi R/A, Road No. 2, Dhaka-1205, Bangladesh. Its operational
headquarters is located at Mirpur DOHS Cultural Center (6th. Floor), Road No. 9, Mirpur DOHS, Pallabi, Dhaka-1216, Bangladesh.
1.3
The Company produces various pharmaceutical products including oral contraceptives, hormone, steroid, anti-histamine, anti-
fibrinolytic, gastrointestinal, musculoskeletal, respiratory, vitamin & mineral supplement and women’s health products which are sold
in the domestic and international markets. The Company also provides toll manufacturing services to other pharmaceutical companies.
2. Basis of preparation
2.1 Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), the Companies
Act 1994 and other applicable laws and regulations.
2.2 Date of authorisation
These financial statements are authorised for issue by the Company’s Board of Directors on 24 September 2023.
2.3 Basis of measurement
The financial statements have been prepared on the historical cost basis except revaluation of certain property, plant and equipment.
2.4 Functional and presentational currency
These financial statements are prepared in Bangladeshi Taka (Taka/Tk.), which is the Company’s functional currency. All financial
information has been presented in Taka and rounded off to the nearest integer.
2.5 Use of estimates and judgments
The preparation of financial statements requires management to make judgment, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an on going basis.
2.6 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 financial statements. The current resources and credit facilities of the Company are
sufficient to meet the present requirements of its existing business.
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2.7 Statement of cash flows
Statement of cash flows has been prepared in accordance with as per IAS 7: “Statement of cash flows” under direct method.
2.8 Reporting period
These financial statements cover one year from 1 July 2022 to 30 June 2023.
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
3.1 Share capital
Share capital represents the total amount of shareholders capital that has been paid in full by the ordinary shareholders. Holders of
ordinary shares are entitled to receive dividends as declared from time to time.
3.2 Leases
IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the Company, as a lessee, recognizes 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 Office rent
As per IFRS 16, a contract is a lease if the contract conveys the right to control the use of an identified asset. As per terms of the
agreement of office rent, lessor has the right to control the use of office building. Furthermore, the lessee and lessor each has the
right to terminate the lease by giving 180 days notice period without permission from the other party with no penalty clause. As a
result, the contract does not meet the criteria of lease as defined under IFRS 16.
3.3 Staff gratuity fund
The Company operates 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 Benefits, such valuation is not likely to yield a result
significantly 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 benefits associated with the
asset will flow to the entity and the cost of the item can be measured reliably.
Property, plant and equipment are stated at cost or valuation less accumulated depreciation and impairment losses, if any. Cost
includes expenditure that is directly attributable to the acquisition of the assets, bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by management.
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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 benefits embodied within the part will flow to the Company and its costs can be measured
reliably. The costs of the day to day servicing of property, plant and equipment are recognized in the Statement of profit or loss
and other comprehensive income as incurred.
3.5.3 Depreciation
Depreciation is recognized in the Statement of profit or loss and other comprehensive income on a straight line basis over the
estimated useful lives of each item of property, plant and equipment. Depreciation on property, plant and equipment is charged
from the month of acquisition. In case of disposals, depreciation is charged up to the immediate previous month of disposal.
No depreciation is charged on leasehold land and capital work-in-progress. Depreciation is calculated and charged on all other
property, plant and equipment at the following rates on cost or valuation, considering the estimated useful lives of the assets:
Factory building and warehouse
Motor vehicles
Plant, machinery and equipment
IT equipment
Furniture and fixtures
2.5%
20%-25%
5% -15%
30%
6% -7%
Gain or loss on sale of property, plant and equipment is recognized in the Statement of profit or loss and other comprehensive
income as per provision of IAS 16: “Property, plant and equipment”.
3.6 Intangible assets
Intangible assets represent rights, titles and assigned trademark. Acquired intangible asset is initially 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 financial position date
to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is
estimated. An impairment loss is recognized whenever the carrying amount of the asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses, if any, are recognized in the Statement of profit or loss and other comprehensive income.
For the assets that have indefinite useful life, the recoverable amount is estimated at each Statement of financial position date.
No indication of impairment was observed in the year ended 30 June 2023.
3.7.2 Calculation of recoverable amount
The recoverable amount of an asset is the greater of net selling price and value in use. Net selling price is the selling price in the
ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Value
in use is the estimated future cash flows that are discounted to their present value using discount rate that reflects the current
market assessment of the time value of money and the risk specific to the asset. For an asset that does not generate significantly
independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.
3.7.3 Reversal of impairment
An impairment loss 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, if no impairment loss had been recognized for the asset in prior years.
There was no reversal of impairment in the year ended 30 June 2023.
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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 profit or loss and other comprehensive income for the year comprises current and deferred tax. Tax is
recognized in the Statement of profit 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.
3.9.1 Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
Statement of financial position date, and any adjustment to tax payable in respect of previous years.
3.9.2 Deferred tax
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial
recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in
a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse
in the foreseeable future. The amount of deferred tax provided is based on the expected manner of 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 profits 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 benefit will be realized.
3.10 Inventories
Inventories include raw materials, raw materials in transit, work-in-process, finished goods and spare parts. These are valued at the
lower of cost and net 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 financial assets, financial liabilities and some contracts to buy or sell
non-financial items. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement.
IFRS 9 contains three principal classification categories for financial assets such as measured at amortized cost, Fair Value through
Other Comprehensive Income (FVOCI) and Fair Value through Profit or Loss (FVTPL). The classification of financial assets under IFRS 9
is generally based on the business model in which a financial asset is managed and the contractual cash flow characteristics. IFRS 9
replaces the previous financial assets categories defined under IAS 39.
IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
3.12 Foreign currency
3.12.1 Foreign currency transactions
Foreign currency transactions are converted into equivalent Taka at the ruling exchange rates on the respective dates of such
transactions and subsequently retranslated using the rate at the date of settlement.
3.12.2 Foreign currency translations
Monetary assets and liabilities denominated in foreign currencies have been converted into Taka at the exchange rate ruling at
the year end.
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3.12.3 Translation gains and losses
Foreign exchange difference arising on translation are recognized in the Statement of profit or loss and other comprehensive
income.
3.13 Provisions
A provision is recognized in the Statement of financial position when the Company has a legal or constructive obligation as a result
of past events, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.
3.14 Revenue from contracts with customers
Revenue is measured based on the consideration specified in a contract with a customer. The Company 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 significant payment terms, and the related revenue
recognition policies:
- Identify the contract with a customer,
- Identify the performance obligations in the contract,
- Determine the transaction price,
- Allocate the transaction price to the performance obligations in the contract and
- Recognize revenue when the entity satisfies a performance obligation.
3.15 Interest expenses
Interest expense comprises interest expense on overdraft, import loan, demand loan, finance lease and term loan. All interest expenses
are recognized in the Statement of profit or loss and other comprehensive income when it accrues.
3.16 Workers’ Profit Participation Fund (WPPF)
The Company provides 5% of its net profit before tax (after charging such expense) as WPPF in accordance with Bangladesh Labor
Act 2006.
3.17 Events after the reporting period
Events after the reporting period that provide additional information about the Company’s position at the reporting date are reflected
in the financial statements. Events after the reporting period that are not adjusting events are disclosed in the notes when material.
3.18 General
Previous year’s figures have been rearranged/reclassified wherever considered necessary to conform to current year’s presentation.
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4 . Property, plant and equipment
Particulars
Land
Factory
building
Factory
warehouse
Plant and
machinery
Motor
vehicles
IT
equipment
Other
equipments
Furniture
& fixtures
Amount in Taka
Total
Cost or valuation
As at 1 July 2022
Addition/transfer during the year
Adjustment/disposal
As at 30 June 2023
Accumulated depreciation
As at 1 July 2022
Charge during the year
Adjustment/disposal
As at 30 June 2023
Net book value
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
-
-
4,503,388
-
-
-
25,774,822
2,898,228
14,002,266
26,518,562
50,840,350
124,537,616
-
(7,549,200)
(2,585,213)
(5,249,690)
(14,854,500)
(30,238,603)
275,608,713 243,685,166
21,077,823 536,982,735 152,094,907
41,891,013 726,245,259
89,329,774 2,086,915,390
-
-
-
-
66,100,702
4,919,623 237,025,391 130,074,367
26,526,720 438,606,602
31,110,061
934,363,466
5,976,526
526,946
21,539,194
7,753,153
3,654,136
43,208,483
3,081,329
85,739,767
-
-
-
(7,549,176)
(2,316,653)
(4,341,633)
(12,158,432)
(26,365,894)
72,077,228
5,446,569 258,564,585 130,278,344
27,864,203 477,473,452
22,032,958
993,737,339
As at 30 June 2023
275,608,713 171,607,938
15,631,254 278,418,150
21,816,563
14,026,810 248,771,807
67,296,816 1,093,178,051
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
4.1 Allocation of depreciation:
Factory overhead (Note 23.3)
General and administration expenses (Note 24)
Selling and distribution expenses (Note 25)
30 June 2023
30 June 2022
74,289,770
74,443,171
2,897,606
1,968,906
8,552,391
11,184,711
85,739,767
87,596,788
4.2 Revalued assets
The Company revalued its land in 1976, 2006 and 2010. The Company’s plant, machinery and equipment was revalued once in 2006 when Organon (Bangladesh) Limited
divested its shares. Thus the land, plant, machinery and equipment represents revalued amount.
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5. Capital work-in-progress
Factory building
Plant and machinery
Furniture & fixtures
Other equipments
IT equipment
Motor vehicles
Intangible assets
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 (Note 25)
Balance as at 30 June
Net carrying value as at 30 June
As at
1 July 2022
Addition during
the year
Transfer to
property, plant
and equipment
-
7,544,085
-
3,300
-
-
-
4,503,388
34,242,920
50,840,350
26,515,262
14,002,266
2,898,228
10,104,215
4,503,388
25,774,822
50,840,350
26,518,562
14,002,266
2,898,228
-
7,547,385
143,106,629
124,537,616
Amount in Taka
As at
30 June 2023
-
16,012,183
-
-
-
-
10,104,215
26,116,398
Amount in Taka
As at
30 June 2023
30 June 2022
14,870,674
-
-
14,870,674
14,870,674
14,870,674
1,858,834
1,487,067
3,345,901
371,767
1,487,067
1,858,834
11,524,773
13,011,840
This represents rights, titles and assigned trademark of ovestin brand purchased from Merck Sharp & Dohme B. V., the Netherlands on 1
April 2021 and is amortized over 10 years.
7. Inventories
Stocks
Finished goods
Work-in-process
Raw materials
Packing materials
Materials-in-transit
Stores
Spares and accessories
Laboratory consumables
Literature, brochure and other materials
148,047,552
73,278,156
291,441,216
47,097,880
6,056,793
154,016,608
50,867,317
294,335,371
37,618,353
659,581
565,921,597
537,497,230
18,193,154
-
29,635,950
15,439,501
299,097
38,349,175
47,829,104
54,087,773
613,750,701
591,585,003
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8. Accounts receivable
Trade receivables
Other receivables
Ageing of the trade receivables is as follows:
Receivables due below six months
Receivables due over six months
Amount in Taka
As at
30 June 2023
30 June 2022
71,105,457
8,088,889
79,194,346
101,333,448
1,556,190
102,889,638
71,069,044
101,014,878
36,413
318,570
71,105,457
101,333,448
Trade receivables is net off provision for bad debts Tk. 2,991,744. Receivables are unsecured but considered good.
9. Loans, advances and deposits
Motor cycle and car loan
General loan
Advance for expenses
Security deposits
VAT
Prepaid insurance and rent
LC margin
Others
10. Short term investment
24,293,694
2,214,981
2,648,455
12,420,559
23,101,095
4,913,638
22,351,773
3,690,392
95,634,587
20,839,130
1,850,981
2,683,454
3,478,251
26,594,909
5,644,596
9,878,546
1,781,563
72,751,430
The Company has invested its surplus fund with Beximco Pharmaceuticals Limited under corporate loan agreement at a competitive interest
rate which was approved by the Board of Directors. The applicable interest rate on the investment during the year was 8%.
11. Cash and cash equivalents
Cash in hand
Cash in foreign currency account
Cash at other bank accounts
8,651
1,227,784
135,964,573
137,201,008
196,446
2,272,087
178,355,584
180,824,117
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Amount in Taka
As at
30 June 2023
30 June 2022
12. Share capital
Authorized
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
Shareholding position
Beximco Pharmaceuticals Limited
Govt. of Bangladesh (Ministry of Industries)
Other shareholders
1,710,000
1,710,000
117,501,600
117,501,600
Nominal value (Taka)
Percentage of holding (%)
30 June 2023
30 June 2022
30 June 2023
30 June 2022
100,134,740
100,134,740
15,186,000
15,186,000
2,180,860
2,180,860
117,501,600
117,501,600
85.22
12.92
1.86
100
85.22
12.92
1.86
100
12.1 In 2012, the Company raised its paid-up capital from Tk. 9,791,800 to Tk. 58,750,800 by issuing 4,895,900 rights share to the existing
shareholders on the basis of 5R:1 (i.e. five rights share against each share held). Subsequently 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 each share held).
13. Reserves and surplus
General reserve
Share premium (Note 13.1)
Pre-incorporation profit
Revaluation reserve (Note 13.2)
Retained earnings
13.1 Share premium
Amount in Taka
As at
30 June 2023
30 June 2022
7,511,991
30,844,170
243,737
190,985,607
1,182,622,406
1,412,207,911
7,511,991
30,844,170
243,737
162,337,766
965,366,749
1,166,304,413
This represents the amount received on 48,959 ordinary shares issued in 1997 at a premium of Tk. 630 each.
13.2 Revaluation reserve
Revaluation reserve relates to surplus arising from revaluation of land.
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14. Long term bank borrowings
Dhaka Bank Limited (Note 14.1)
Less: Current portion (Note 17)
Amount in Taka
As at
30 June 2023
30 June 2022
12,815,090
(7,071,660)
5,743,430
19,274,167
(6,459,077)
12,815,090
14.1
All borrowings-short and long term are secured by a registered mortgage of factory land and buildings along with hypothecation of fixed
and floating assets of the Company. Additionally, there is a corporate guarantee issued by Beximco Pharmaceuticals Limited.
15. Gratuity payable
A. Liability for gratuity
Balance as at 1 July
Add : Provision made during the year
Add : Liability for transferred employees
Less: Payments to outgoing employees
B. Gratuity investment
Balance as at 1 July
Add : Amount paid to the Fund
Add: Interest income on gratuity investment
Less: Payments to outgoing employees
Net gratuity payable (A-B)
16. Deferred tax liabilities
Balance as at 1 July
Transferred to revaluation reserve (Note 16.1)
Deferred tax expense/(income) (Note 28)
Balance as at 30 June
180,145,272
40,010,531
-
220,155,803
(15,167,856)
204,987,947
6,934,450
20,000,000
202,102
(15,167,856)
11,968,696
193,019,251
148,113,060
32,314,278
5,520,350
185,947,688
(5,802,416)
180,145,272
-
12,500,000
236,866
(5,802,416)
6,934,450
173,210,822
109,628,828
117,591,532
(28,647,841)
(14,682,433)
-
(7,962,704)
66,298,554
109,628,828
16.1 Deferred tax liabilities recognised earlier on revalued land has been reversed in the current year since the Company has no intention to
dispose of the land and its carrying value will not be recovered through disposal.
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Amount in Taka
As at
30 June 2023
30 June 2022
17. Short term bank borrowings
Bank overdrafts
Dhaka Bank Limited (Limit Tk. 200,000,000)
22,821,049
34,516,939
Short term bank loans
Dhaka Bank Limited
Current portion of long term bank borrowings (Note 14)
223,025,417
106,012,136
7,071,660
252,918,126
6,459,077
146,988,152
Details of collateral securities against Short term bank borrowings are given in note no. 14. Short term bank borrowings carrying interest
@ 8%-9% per annumn.
18. Trade payables
Trade payables
This represents amount due against supply of goods and services.
19. Liabilities for expenses
Accrued expenses
Audit fees
Accrued interest
20. Income tax payable
Balance as at 1 July
Add:
Less:
Income tax provision for current year
Provision for prior years
AIT and treasury deposits for current year
For prior years
Balance as at 30 June
21. Other liabilities
Salary and allowances
Provident fund dues
Workers’ profit participation fund
Tax deducted at source
VAT payable
Advance against sales
Unclaimed dividend
Others
222,857,737
222,857,737
136,174,578
136,174,578
102,526,608
450,000
4,250,443
107,227,051
99,568,603
425,000
398,771
100,392,374
7,783,192
134,858,390
6,845,635
(120,300,664)
(2,413,644)
26,772,909
2,064,899
143,091,029
1,945,479
(109,340,155)
(29,978,060)
7,783,192
1,165,858
3,788,419
19,563,894
72,081
23,426,631
3,190,088
539,838
306,486
52,053,295
2,150,695
3,080,997
22,395,406
1,811,832
23,831,849
-
470,036
2,322,460
56,063,275
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Domestic sales
Export sales
Toll income
Quantitative details of sales
July 2022-June 2023
July 2021-June 2022
Amount in Taka
2,953,314,794
2,740,596,167
10,282,239
70,080,193
17,930,960
43,830,691
3,033,677,226
2,802,357,818
Unit
Tabs
Caps
Amps, Suspensions and Cream
Bottles
Quantity
Quantity
349,933,889
41,318,955
16,442,714
11,345
434,218,178
41,777,416
15,634,554
8,118
July 2022-June 2023
July 2021-June 2022
Amount in Taka
154,016,608
1,554,938,840
1,708,955,448
(12,260,946)
(148,047,552)
111,155,804
1,416,984,316
1,528,140,120
(11,341,361)
(154,016,608)
1,548,646,950
1,362,782,151
50,867,317
929,443,680
647,905,999
57,816,825
810,601,118
599,433,690
1,628,216,996
1,467,851,633
(73,278,156)
(50,867,317)
1,554,938,840
1,416,984,316
23. Cost of goods sold
Opening stock of finished goods
Cost of production (Note 23.1)
Cost of goods available for sale
Cost of physician sample
Closing stock of finished goods
23.1 Cost of production
Opening work-in-process
Materials consumed (Note 23.2)
Factory overhead (Note 23.3)
Closing work-in-process
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23.2 Materials consumed
Opening stock
Purchase
Closing stock
Item wise quantity and value of finished goods stock are as follows :
Stock as at June 30, 2023
Tabs
Caps
Amps, Suspensions and Cream
Bottles
Stock as at June 30, 2022
Tabs
Caps
Amps & Suspensions
Bottles
Unit
pcs.
pcs.
pcs.
pcs.
Unit
pcs.
pcs.
pcs.
pcs.
July 2022-June 2023
July 2021-June 2022
Amount in Taka
331,953,724
936,029,052
(338,539,096)
929,443,680
278,451,905
864,102,937
(331,953,724)
810,601,118
Quantity
Value (Taka)
50,502,931
4,477,527
919,373
12,207
97,362,405
19,006,969
28,967,369
2,710,809
148,047,552
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
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July 2022-June 2023
July 2021-June 2022
Amount in Taka
23.3 Factory overhead
Salaries and allowances
Power and fuel
Factory supplies
Software and hardware expenses
Canteen expenses
Insurance
Repair and maintenance
Security services
Toll manufacturing charges
Store materials consumed
Product development cost
Uniform
Printing and stationery
Entertainment
Vehicle repair, maintenance and running cost
Local authority taxes
Travelling & conveyance
Overseas travelling expenses
Depreciation (Note 4.1)
Other expenses
241,798,930
77,088,749
43,649,291
1,963,277
18,095,980
5,180,755
56,236,985
2,331,816
10,372,480
54,155,243
42,155,691
3,363,407
2,185,283
2,003,871
4,764,815
2,490,732
2,376,100
102,793
74,289,770
3,300,031
647,905,999
Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 2,645,366.
24. General and administration expenses
Salaries and allowances
Directors’ fees
Office rent
Local travelling expenses
Entertainment
Vehicle repair, maintenance and running cost
Postage, telephone, cellphone and internet
Printing and stationery
Repairs and maintenance
Software and hardware expenses
Utilities
Canteen expenses
Insurance premium
Statutory audit fees
Legal and professional expenses
Meeting and seminars
Overseas travelling expenses
Security services
Depreciation (Note 4.1)
Other expenses
79,827,750
456,000
15,693,942
1,492,483
1,141,625
7,179,899
2,538,684
1,256,892
4,467,213
7,556,200
2,169,353
6,311,178
144,426
450,000
294,500
1,011,542
239,779
949,982
2,897,606
2,540,256
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
1,393,719
176,460
-
74,443,171
3,138,969
599,433,690
69,957,063
273,600
11,740,350
1,412,838
1,149,162
5,880,749
2,416,201
1,187,849
3,342,312
4,273,121
2,331,589
4,037,583
102,198
425,000
340,500
2,100,431
-
146,780
1,968,906
2,164,549
a. Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 1,321,978.
b. Directors’ fees relates to Board meeting attendance fee paid to Directors.
138,619,310
115,250,781
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25. Selling and distribution expenses
July 2022-June 2023
July 2021-June 2022
Amount in Taka
A
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Salaries and allowances
Travelling expenses - local
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
Training expenses
Market survey and research
Registration and renewals
Insurance premium
Export Insurance, freight and C&F expenses
Office rent
Bad debts
Utilities
Overseas travelling expenses
Amortization (Note 6)
Depreciation (Note 4.1)
Other expenses
416,966,810
110,457,569
3,916,076
17,515,633
19,827,301
7,558,223
12,336,942
22,455,070
1,558,012
9,144,659
3,583,892
26,993,787
45,066,414
179,845,848
9,646,404
7,638,469
2,813,841
10,126,049
12,688,237
2,041,587
4,096,845
713,456
1,902,383
1,832,557
389,184
7,764,072
530,867
619,499
41,750
1,487,067
8,552,391
1,391,918
951,502,812
368,318,221
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
3,295,291
700,535
783,309
2,579,234
666,208
4,608,924
576,016
1,033,457
-
1,487,067
11,184,711
1,146,717
860,919,037
a. Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 10,194,425.
b. Sample expense includes VAT on sample.
26. Non-operating income
Gain on disposal of property, plant and equipment
Rental income
Cash incentive on export
Interest on Short term investment
Other interest income
Exchange rate fluctuation gain
Sale of miscellaneous items
Forfeited PF refund (Note: 26.1)
1,065,521
866,400
988,800
22,377,778
5,323,150
250,751
784,460
54,818
31,711,678
5,732,021
866,400
1,729,100
-
2,679,248
188,985
608,800
51,356
11,855,910
26.1 Forfeited PF refund
In compliance with the FRC circular number 179/FRC/FRM/Notification/2020/2, dated 07 July 2020, the Company has recovered the
forfeited provident fund from the Provident Fund Trust.
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27. Interest expenses
Interest on
Long term bank borrowings
Short term bank borrowings
Bank charges
28. Income tax expense
Current tax (Note 20)
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
Transferred to revaluation reserve
Deferred tax charged to profit or loss and other comprehensive income
July 2022-June 2023
July 2021-June 2022
Amount in Taka
1,446,863
13,969,716
361,470
599,439
4,055,776
303,021
15,778,049
4,958,236
141,704,025
145,036,508
(14,682,433)
(7,962,704)
127,021,592
137,073,804
417,006,176
445,608,322
(193,019,251)
(173,210,822)
(2,991,744)
(2,460,877)
220,995,181
269,936,623
30.00%
66,298,554
-
30.00%
80,980,987
28,647,841
66,298,554
109,628,828
109,628,828
117,591,532
(28,647,841)
-
(14,682,433)
(7,962,704)
Reconciliation of effective tax rate
2022-23
2021-22
%
Taka
%
Profit before tax
Applicable tax rate
Effect of lower rate on export profit
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
30.00%
-0.06%
-0.05%
0.83%
3.75%
1.75%
-3.75%
32.46%
391,277,889
117,383,367
(239,247)
(197,760)
3,229,597
14,682,433
6,845,635
(14,682,433)
127,021,592
30.00%
-0.26%
-0.08%
0.56%
1.73%
0.43%
-1.78%
30.60%
Taka
447,908,117
134,372,435
(1,185,798)
(345,820)
2,508,933
7,741,279
1,945,479
(7,962,704)
137,073,804
204 | Nuvista Pharma Limited | Annual Report 2022-23
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29. Reconciliation of net profit with cash flows from operating activities
Profit after tax
264,256,297
310,834,313
Adjustments to reconcile net profit to net cash with operating activities:
July 2022-June 2023
July 2021-June 2022
Amount in Taka
Non-cash expenses
Depreciation
Amortization
Effect of exchange rate fluctuation on cash and cash equivalents
Deferred tax
Non-operating items
Profit on sale of property, plant and equipment
Changes in working capital
(Increase)/decrease in inventories
(Increase)/decrease in accounts receivable
(Increase)/decrease in loans, advances and deposits
Increase/(decrease) Provision for staff gratuity
Increase/(decrease) in trade payable
Increase/(decrease)in liabilities for expenses and other liabilities
Increase/(decrease) in income tax payable
Net cash generated from operating activities
85,739,767
1,487,067
(246,757)
(14,682,433)
72,297,644
(1,065,521)
(1,065,521)
(22,165,698)
23,695,292
(22,883,157)
19,808,429
86,683,159
2,253,519
18,989,717
106,381,261
441,869,681
87,596,788
1,487,067
-
(7,962,704)
81,121,151
(5,732,021)
(5,732,021)
(103,326,105)
(33,897,528)
(10,344,036)
25,097,762
(24,397,534)
(1,818,028)
5,718,293
(142,967,176)
243,256,267
30. Capacity utilization
Amps, Suspensions and Cream
Tablets
Capsules
Installed
capacity
Unit
Actual
production
Unit
21,622,400
1,322,390,400
56,044,880
19,180,165
457,938,539
37,462,971
Actual
Utilization
%
88.71%
34.63%
66.84%
Capacity utilization is calculated based on single shift production. Actual production includes product manufactured for third parties but
does not include NPL’s products manufactured at third party plants on toll manufacturing basis.
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31. Foreign currency payments and receipts
Particulars
Payments:
Import of raw, chemicals and packing materials
Import of machinery, spare parts and others
Receipts:
Export sales
July 2022-June 2023
July 2021-June 2022
Foreign currency
(Equivalent USD)
Taka
Taka
5,454,275
601,056,712
402,030
43,713,687
644,770,399
657,737,659
21,596,947
679,334,606
133,861
13,472,327
17,930,960
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 2023
Balance
type
Beximco
Pharmaceuticals
Limited
Immediate and
ultimate parent
Toll income
Short term investment
Investment income
Advance office rent
Royalty expenses
Cost of services/goods
41,989,696
400,000,000
22,377,778
2,424,240
26,993,787
77,150,475
419,052,198
Dr.
Distribution commission
179,845,848
33,583,639
Cr.
Dividend paid
Oracle EBS-Software
40,053,896
10,104,215
33. Capital expenditure commitment
There was no capital expenditure contracted but not incurred or provided for at 30 June 2023.
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. Events after reporting period
The Board in its meeting dated 24 September 2023 recommended that 40% cash dividend i.e. Tk. 4.00 per share, totaling Tk. 47,000,640
be paid for the year 2022-23. 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
206 | Nuvista Pharma Limited | Annual Report 2022-23
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Financial Statements
Synovia Pharma PLC
For the Year ended June 30, 2023
Annual Report 2022-23 | Synovia Pharma PLC. | 207
Annual Report 2022-23 | Synovia Pharma PLC. | 207
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Directors’ Report
I am delighted to present, on behalf of the Board of Synovia Pharma PLC, the Directors’ Report and the audited financial statements for the year
ending on June 30, 2023, along with the accompanying report from the Auditors. This marks the second reporting year since Beximco Pharma took
over the management and control of the Company at the end of 2021.
The Company successfully navigated the initial challenges, realigned its strategies, restructured its business and operating model, and seamlessly
completed the integration with the group to achieve its renewed objectives. However, the global macro-economic turmoil that began with the start
of the Ukraine war posed a new challenge to the struggling global economy which made fiscal year 2022-23 exceptionally challenging. Bangladesh
like many other economies passed through a turbulent year. Sharp devaluation of domestic currency against US Dollar, significant rise in energy cost,
high inflation and depleting foreign currency reserve, collectively contributed to a difficult business conditions and slower economic growth. I am
very happy to share that, despite the challenges, Synovia Pharma ended a fruitful year with commendable progress in all key areas. We advanced
as per plan towards successful accomplishment of our strategic goals to strengthen the shareholders’ value.
Financial Performance
As you are aware, the Company changed its financial year from January-December to July-June to align with the group’s financial reporting
calendar and comply with the regulatory requirement. During Fiscal year July 2022-June 2023, the Company earned a net revenue of Taka 3,530.0
million with a robust 51% growth when compared with 12-month period of January-December 2021. Our gross margin improved to 36% from 32%
of comparable previous period. Leveraging effect of higher sales, upward price adjustment of few selected products, acquisition synergies, reduction
of expiry loses, and efficient cost management strategies helped elevation of our gross margin level despite increase in cost of production and
operation. Moreover, during the reporting period we managed to significantly reduce the operating, pre-tax and post-tax losses.
Key Financial Highlights
Revenue
Gross profit
Operating profit
Loss After Tax
Earnings Per Share (EPS)
Jul-22 to Jun- 23
% of sales Jan-21 to Dec-21 % of sales
FY 2022-23 vs. FY 2021
%
Amount in Thousand Taka
3,529,982
100.0%
2,336,295
100.0%
1,266,516
(69,873)
(189,294)
(52.7)
35.9%
-2.0%
-5.4%
754,636
32.3%
(259,968)
-11.1%
1,193,688
511,880
190,095
51.1%
67.8%
73.1%
(306,266)
-13.1%
116,972
38.2%
(85.2)
33
38.2%
The notable financial progress made during the reporting period continues as we ended the first quarter of the new financial year with a positive
bottom line along with impressive sales growth. While we are optimistic about the Company’s financial recovery in the near term, we acknowledge
that the current macro-economic headwinds remain a concern.
The detailed audited financial statements of the Company for the year ended June 30, 2023 is placed along with this report for your approval.
Profit/(Loss) and Its Appropriation:
Particulars
Jul-22 to Jun-23
Jan-22 to Jun-22
Jan-21 to Dec-21
12 Months
6 Months
12 Months
Amount in Thousand Taka
Net Profit/(Loss) Before Income Tax
Less: Provision for Income Tax
Net Profit After Tax
Other Comprehensive Income/Expense
Add: Profit Brought forward from previous year
Profit Available for Appropriation
Proposed Dividend
Un-appropriate Profit Carried Forward
(81,338)
(107,955)
(189,293)
1,424,810
1,235,517
(35,952)
1,199,565
(113,927)
(10,294)
(124,221)
1,549,031
1,424,810
1,424,810
(238,834)
(67,432)
(306,266)
6,920
1,848,377
1,549,031
-
1,549,031
208 | Synovia Pharma PLC. | Annual Report 2022-23
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Dividend
The Board of Directors has reviewed the financial performance of the Company for the year ended 30 June 2023. After due consideration of the
current business status, future investment plans and the cash flow position of the Company, the Board proposes to pay 10% Cash Dividend for the
period under review. The proposal is placed in this meeting for the approval of the shareholders.
Board Composition:
The Board currently consists of following 6 (six) members including one Independent Director:
Name
Mr. Md. Saidur Rahman
Mr. Nazmul Hassan, MP
Mr. S. M. Rabbur Reza
Mr. Mohammad Ali Nawaz
Mr. Md. Nuruzzaman
Position in the Board
Director and Chairman
Director
Director and Chief Executive Officer
Director
Director
Dr. Md. Ibraheem Hosein Khan
Independent Director
Attendance in
Board Meeting
2*
4
4
4
4
4
* Mr. Md. Saidur Rahman became the Chairman of the Board with effect from 4th Jan’23 replacing Mr. Shah Imdadul Haque, who attended
previous two meetings during the year
Retirement and Re-appointment of Directors:
Mr. S. M. Rabbur Reza and Mr. Mohammad Ali Nawaz, Directors of the Board, retire by rotation as per Article 52 and 93 of the Articles of Association
of the Company. Both Mr. S. M. Rabbur Reza and Mr. Mohammad Ali Nawaz being eligible, have offered themselves for re-election. The proposal of
their re-election as 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 58th Annual General Meeting of the Company has carried out audit for the period up to 30th June 2023.
M/s. A. Qasem & Co. Chartered Accountants, the Auditors of the Company, retire at this meeting and has expressed their willingness to continue
office for the year 2023-2024. After due consideration, the Board recommended the reappointment of A. Qasem & Co. Chartered Accountants as
the auditors for the FY 2023-24.
Md. Saidur Rahman
Chairman
Annual Report 2022-23 | Synovia Pharma PLC. | 209
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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 financial statements of Synovia Pharma PLC (“the Company”), which comprise the Statement of Financial
Position as at 30 June 2023, and the Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement
of Cash Flows for the year ended 30 June 2023, and notes to the financial statements including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give true and fair view, in all material respects, the financial position of the company as
at 30 June 2023, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting
Standards (IFRSs), and comply with the Companies Act, 1994 and other applicable laws and regulations.
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 financial statements in Bangladesh, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements of the Company in accordance with IFRSs, the
Companies Act, 1994 and other applicable laws and regulations, and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements 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 financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements 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
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
210 | Synovia Pharma PLC. | Annual Report 2022-23
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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 significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 financial position and statements of profit 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: 2310291259AS248456
Place: Dhaka
Date: 24 September 2023
Annual Report 2022-23 | Synovia Pharma PLC. | 211
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Synovia Pharma PLC
Statement of financial position
As at 30 June 2023
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 share holders of the Company
Share capital
Share premium
Reserves and surplus
Retained earnings
Liabilities
Non-current liabilities
Liability for Pension fund
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
Dividend payable
Total liabilities
Total equity and liabilities
Footnotes:
Notes
30-June-23
30-June-22
Amount in Taka
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18.a
18.b
19
20
21
22
1,811,470,233
44,470,619
39,397,344
56,512,081
1,697,815,188
53,814,702
31,660,826
88,640,228
1,951,850,277
1,871,930,944
1,626,343,926
271,806,701
249,893,477
227,618,388
59,833,796
2,435,496,288
4,387,346,565
1,065,757,823
428,658,632
204,025,153
196,635,027
171,599,695
2,066,676,330
3,938,607,274
359,520,400
633,804,683
3,786,810
1,235,514,960
359,520,400
633,804,683
3,786,810
1,424,808,834
2,232,626,853
2,421,920,727
5,334,216
128,126,922
35,673,860
5,334,216
123,680,975
39,836,338
169,134,998
168,851,529
16,866,817
628,688,504
992,187,495
347,633,221
208,677
19,809,186
346,335,027
489,678,689
491,803,439
208,677
1,985,584,714
1,347,835,018
2,154,719,712
1,516,686,547
4,387,346,565
3,938,607,274
1. Auditor’s report in page 1 and 2
2. The accompanying notes 1 to 42 form an integral part of these financial statements.
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
212 | Synovia Pharma PLC. | Annual Report 2022-23
Date: 24 September 2023
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2310291259AS248456
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Synovia Pharma PLC
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2023
Notes
For the year ended 30
June 2023
For the six
month period
January-June 2022
Amount in Taka
For the year
ended 31
December 2021
23
24
25
26
27
28
11
7
Revenue
Cost of sales
Gross profit
Administrative expenses
Selling, marketing and distribution expenses
Operating profit
Finance cost
Other income
Profit before contribution to WPPF
Contribution to WPPF
Profit/(loss) before tax
Tax expenses
Current tax
Deferred tax
Profit/(loss) after tax
Other comprehensive income/(expenses)
Actuarial gain/(loss) on Gratuity & Pension
Deferred tax on actuarial valuation
Other comprehensive income, net of tax
3,529,982,189
(2,263,466,454)
1,426,761,942
(883,382,641)
2,336,294,610
(1,581,658,754)
1,266,515,735
543,379,301
754,635,856
(139,980,541)
(1,196,408,608)
(85,691,636)
(572,599,104)
(217,889,028)
(796,714,805)
(69,873,414)
(114,911,439)
(259,967,977)
(45,681,150)
34,216,105
(13,724,162)
14,708,467
(28,376,273)
49,510,070
(81,338,459)
(113,927,134)
(238,834,180)
-
-
-
(81,338,459)
(113,927,134)
(238,834,180)
(75,827,268)
(32,128,147)
(107,955,415)
(28,137,982)
17,843,783
(10,294,199)
(56,236,195)
(11,195,678)
(67,431,873)
(189,293,874)
(124,221,333)
(306,266,053)
-
-
-
-
-
-
9,545,134
(2,624,912)
6,920,222
Total comprehensive income
(189,293,874)
(124,221,333)
(299,345,831)
Earnings Per Share (EPS)
30
(52.65)
(34.55)
(85.19)
Footnotes:
1. Auditor’s report in page 1 and 2
2. The accompanying notes 1 to 42 form an integral part of these financial statements.
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
Date: 24 September 2023
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2310291259AS248456
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Synovia Pharma PLC
Statement of Changes in Equity
For the year ended 30 June 2023
Particulars
Share Capital
Share
Premium
Account
Other
Reserve
Retained
Earnings
Total
Amount in Taka
Balance as at 1 July 2022
Dividend paid for 2021
Total comprehensive income for the period from
July 01, 2022 to June 30, 2023
359,520,400
633,804,683
3,786,810 1,424,808,834
2,421,920,727
-
-
-
-
-
-
-
-
(189,293,874)
(189,293,874)
Balance as at 30 June 2023
359,520,400
633,804,683
3,786,810 1,235,514,960
2,232,626,853
Net assets value (NAV) per share (Note-31)
621.00
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
Footnotes:
1. Auditor’s report in page 1 and 2
2. The accompanying notes 1 to 42 form an integral part of these financial statements.
723.21
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
Date: 24 September 2023
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2310291259AS248456
214 | Synovia Pharma PLC. | Annual Report 2022-23
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Synovia Pharma PLC
Statement of Cash Flows
For the year ended 30 June 2023
Notes
For the year
ended 30
June 2023
For the six
month period
January- June 2022
Amount in Taka
For the year
ended 31
December 2021
A. 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 flows from /(used in) operating activities
B. Cash flows from investing activities:
Acquisition of property, plant and equipment
Intangible assets
27
28
11
4
6
3,718,665,876
1,554,336,072
2,441,925,370
(3,701,340,147)
(1,647,260,642)
(2,985,877,700)
17,325,729
(92,924,570)
(543,952,330)
(49,760,144)
(13,724,162)
(28,376,273)
682
101,577
1,740,043
(106,810,629)
(139,244,361)
(39,325,095)
(114,325,728)
(145,872,250)
(684,914,288)
(232,228,156)
(12,549,596)
(25,169,848)
(126,783,949)
(525,000)
-
(1,958,714)
10,482,510
Disposal of property, plant and equipment
4, 28
4,422,584
Net cash from/(used in) investing activities
(240,355,168)
(25,694,848)
(118,260,153)
C. Cash flows from financing activities:
Short term loan
Lease payment
Dividend paid
19
18
22
282,353,477
(14,519,847)
163,606,535
171,644,560
(7,679,180)
(10,101,402)
-
(53,911,680)
-
Net cash flows from/(used in) financing activities
267,833,630
102,015,675
161,543,158
D. Net increase in cash (A+B+C)
E. Opening cash and cash equivalents
F. Closing cash and cash equivalents (D+E)
(111,765,899)
(69,551,423)
(643,631,283)
171,599,695
59,833,796
241,151,118
882,782,401
171,599,695
241,151,118
Net operating cash flows per share
32
(38.73)
(40.57)
(190.51)
Footnotes:
1. Auditor’s report in page 1 and 2
2. The accompanying notes 1 to 42 form an integral part of these financial statements.
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Place: Dhaka
Date: 24 September 2023
A. Qasem & Co.
Chartered Accountants
RJSC Firm Registration Number: 2-PC7202
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2310291259AS248456
Annual Report 2022-23 | Synovia Pharma PLC. | 215
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Synovia Pharma PLC
Notes to the financial Statements
As at and for the year ended 30 June 2023
1. Corporate information
1.1 Reporting entity
Synovia Pharma PLC (Synovia Pharma/SPP/the “Company”) is a public limited company incorporated in Bangladesh having registered
office 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. Later, 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. Subsequent to the acquisition, it has been renamed as Synovia Pharma PLC. The Company is now operating
as a subsidiary of Beximco Pharmaceuticals Limited. Government of Peoples Republic of Bangladesh holds 45.4% shares of the Company
represented through Bangladesh Chemical Industries Corporation (20%) and Ministry of Industries (25.4%).
1.2 Nature of activity
Synovia Pharma produces generic pharmaceutical products with strong presence in cardiology, diabetes, oncology, dermatology and
CNS. The Company also imports certain global brands of Sanofi including vaccine, insulin and chemotherapy drugs for sale in the
Bangladesh market. It also provides contract manufacturing services to other pharmaceutical companies.
2. Basis of preparation
2.1 Statement of compliance
The Financial Statements have been prepared in compliance with the requirements of the Companies Act 1994 and the International
Financial Reporting Standards (IFRS) as applicable in Bangladesh. Other relevant laws and regulations complied with includes:
* Income Tax Act 2023;
* Value Added Tax and Supplementary Duty Act, 2012;
* Value Added Tax and Supplementary Duty Rules, 2016;
* Financial Reporting Act 2015.
2.2 Basis of measurement
These financial statements have been prepared under historical cost convention following going concern principle.
2.3 Consistency
The accounting principles, policies and estimates used in the preparation of the financial statements for the year ended June 30, 2023
are in consistent with those applied in preparing the financial statements for the six month period January-June 2022 and for the year
ended 31 December 2021.
2.4 Functional and presentation currency
Financial statements have been prepared in Bangladeshi Taka /BDT, which is the Company’s functional and presentation currency.
2.5 Reporting period
Synovia Pharma’s financial year begins on July 1 and ends by June 30. The financial statements thus have been prepared for one year
period ending in June 2023.
2.6 Comparatives and reclassification
Comparative information have been disclosed in respect of the six month period January-June 2022 and for the year ended 31 December
2021 for all numerical information in the financial statements and also the narrative and descriptive information when it is relevant for
understanding of the current year’s financial statements. To facilitate comparison, certain relevant balances pertaining to the previous
year have been rearranged/ reclassified whenever considered necessary to conform to current year’s presentation.
2.7 Statement of cash flows
Statement of cash flows is prepared in accordance with IAS 7 “Statement of Cash Flows” and the cash flow from the operating activities
are shown under the direct method.
216 | Synovia Pharma PLC. | Annual Report 2022-23
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2.8 Use of accounting judgements, estimates and assumptions
The preparation of financial 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.
2.8.1 Significant accounting judgements
In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most
significant effect on the amounts recognized in the financial 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.
2.8.2 Significant estimates and assumptions
The key assumptions underlying the judgements and estimates made and the related uncertainties may pose significant risk requiring
a material adjustment to the carrying amounts of assets and liabilities in future period. Described below are key assumptions and
estimates used in the financial statements:
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 is disclosed in note-9.
Deferred Taxes
Deferred tax assets are recognized to the extent that probable taxable profit will be available against which the assets can be
utilized. Significant 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 profits, together with future tax planning strategies. Further details on
deferred taxes are disclosed in Note 7.
2.9 Authorization for issue
The financial statements were authorized for issue by the Board of Directors on 24 September 2023.
2.10 Going Concern
There are no significant uncertainties regarding events and conditions that could risk the Company’s ability to continue its operations as a
going concern. As a result, it has been deemed appropriate to prepare the financial statements on the basis of the going concern principle.
3. Summary of significant accounting policies
3.1 Property, plant and equipment
i. Recognition and measurement
Items of property, plant and equipment are reported at cost less accumulated depreciation except land which is reported at cost. Cost
includes expenditures that are directly attributable to the acquisition of the property, plant and equipment.
ii. Subsequent costs
The costs of the day-to-day servicing of property, plant and equipment are recognized in the statement of profit or loss and other
comprehensive income. Cost of replacing or upgrading of an item of the property, plant and equipment is recognized in the carrying
amount of an item if it is probable that the future economic benefits embodied within the item will flow to the company and its cost
can be measured reliably.
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iii. Depreciation
Depreciation is recognized in the statement of profit or loss and other comprehensive income using 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
Office equipment
Computer and accessories
Furniture and fixtures
Motor vehicles
Information systems & software
Rate %
5-10
10
6.67
10
33.33
10
20-25
20
3.2 Intangible assets (Valuation of brand names and software)
Initially the company recognized brand names as intangible assets with indefinite useful life. Later, in 2021,brand names has been
reassessed and its useful life has been changed from indefinite to finite useful life in accordance with IAS 8. The carrying value of brand
name was Taka 26,578,537 at the beginning of 2021 and it is being amortized over a remaining period of 9 years.
3.3 Leases
Synovia Pharma PLC (SPP) as a lessee
SPP 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 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 using
prevailing interest rate for the leases.
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 financial position comprise cash at banks and short-term deposits, which are subject to
an insignificant risk of changes in value.
3.6 Financial instruments
IFRS 9 sets out requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-
financial items. IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
However, it eliminates the previous IAS 39 categories for financial assets of held to maturity, loans and receivables and available for sale.
The adoption of IFRS 9 has not had a significant effect on Company’s accounting policies.
Financial assets
Under IFRS 9, on initial recognition, a financial asset is classified 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 Profit or Loss (FVTPL). The classification of financial assets under IFRS 9 is generally based on the business model
in which a financial asset is managed and its contractual cash flow characteristics. Company’s financial 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 non-recoverability of any amount so recognized.
Financial liabilities
The Company recognizes all financial liabilities on the trade date which is the date the Company becomes a party to the contractual
provisions of the instrument. It derecognizes a financial liability when the contractual obligations are discharged, cancelled or expired.
Financial liabilities comprise trade creditors and other financial obligations.
Trade and other payables
The Company recognizes a financial liability when its contractual obligations arising from past events are certain and the settlement
of which is expected to result in an outflow of resources embodying economic benefits from the Company. The carrying amount of the
trade and other payables approximates its fair value due to its short term nature.
3.7 Impairment of assets
Impairment of financial 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 reflects 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. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security against the trade
credits arising in the normal course of business.
Impairment of tangible assets
At each statement of financial position date the Company reviews the carrying amounts of its tangible fixed 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 indefinite useful life derived from the valuation of brand names. In
2021 financial year, intangible asset for brand valuation has been reassessed and its useful life has been changed from indefinite to
finite useful life in accordance with IAS 8.
3.8 Revenue recognition under IFRS 15
Under IFRS 15, revenue is measured based on the consideration specified in a contract with a customer. The Company
recognizes revenue when it satisfies 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 fixed 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.
3.9 Earnings per share
The Company presented Earnings Per Share (EPS) in accordance with IAS - 33 Earning Per Share which has been shown on the face
of the statement of profit or loss and other comprehensive income. Basic EPS is calculated by dividing the net profit with weighted
average number of shares outstanding throughout the year. Diluted earning per share (DEPS) is not applicable for these financial
statements as there were no equity instruments with potential dilution.
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3.10 Employee benefits
The Company maintains both defined contribution plan and defined benefit plan for its eligible permanent employees. The eligibility is
determined according to the terms and conditions set forth in the respective trust deeds and rules.
Defined contribution plan (provident fund)
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and
has no legal or constructive obligation to pay further amounts. Obligations for contribution to defined contribution plans are recognized
as an employee benefit expense in profit 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.
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.
Defined contribution plan (Contribution to Workers Participation Fund and Welfare Fund)
The Company is required to provide 5% of net profit before tax after charging such expense as contribution to Workers Participation
and Welfare Fund in accordance with Bangladesh Labour Act, 2006 (as amended up to date).
Defined benefit plan (gratuity and pension fund)
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The employee Gratuity and Pension
plans are considered as defined benefit plans as they meet the recognition criteria. The company’s obligation is to provide the agreed
benefits to current and former employees.
Short-term employee benefits
Short-term employee benefit 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 profit 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, 2023.
Deferred tax
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. 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 profits 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 benefit 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. The year-end balances of monetary
assets and liabilities that are denominated in foreign currencies, are translated at the rates prevailing on the statement of financial
position date as per IAS 21.
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 significant
influence over the other party in making financial 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
financial statements under Note-35.
220 | Synovia Pharma PLC. | Annual Report 2022-23
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3.14 Financial instruments risk management objectives and policies
The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance
the operations. The Company’s principal financial 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 flows of a financial instrument will fluctuate 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 financial 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 floating interest rates.
b. Foreign currency risk
The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to payable to suppliers for import of
raw-materials and cash at bank in foreign currency.
c. Other price risk, such as equity price risk and commodity risk
The Company has no exposure to the risk of changes in other price, such as equity price and commodity price volatility.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial 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 efficient use of working capital. The Company assessed the concentration of risk with respect to financing and
concluded it to be low.
3.15 Events after the reporting period
Events after the reporting period are the events that occur between the end of the reporting period and the date when the financial
statements are authorized for issue. These events can be classified into two categories:
Adjusting Events: These are events that provide further evidence of conditions that existed at the end of the reporting period and, therefore,
require adjustments to the financial statements. Adjusting events affect the recognition and measurement of assets and liabilities.
Non-Adjusting Events: These are events that are indicative of conditions that arose after the reporting period and, therefore, do not require
adjustments to the financial statements. Non-adjusting events are disclosed in the notes to the financial statements.
3.16 General
a) All financial information presented has been rounded to the nearest Taka;
b) Previous year’s figures and head of accounts in the financial statements have been re-arranged to confirm to current year’s presentation
wherever necessary.
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4. Property, plant and equipment
As on June 30, 2023
Particulars
Cost
As on July 01, 2022
Additions
Transferred and capitalized
Disposal during the year
Cost as on June 30, 2023
Accumulated Depreciation
As on July 01, 2022
Depreciation charged
Adjustment for assets disposed off
Accumulated depreciation as on June 30, 2023
Land
Building
and other
constructions
Plant and
machinery
Furniture
and fixtures
Office
equipment
Total
Amount in Taka
1,010,047,500
990,490,085
1,170,833,045
129,772,449
291,804,703
3,592,947,782
114,506,809
11,648,520
43,661,121
5,682,854
13,533,055
189,032,359
-
-
12,405,970
40,481,745
-
7,576,502
60,464,217
(511,210)
(51,001,275)
(21,374,728)
(98,400,363)
(171,287,576)
1,124,554,309
1,014,033,365
1,203,974,636
114,080,575
214,513,897
3,671,156,782
-
-
-
-
(764,985,458)
(817,167,857)
(92,772,748)
(245,912,884)
(1,920,838,947)
(36,354,413)
(44,672,090)
(7,234,047)
(25,937,387)
(114,197,937)
511,206
51,001,115
20,963,242
97,391,839
169,867,402
(800,828,665)
(810,838,832)
(79,043,553)
(174,458,432)
(1,865,169,482)
Net book value June 30, 2023
1,124,554,309
213,204,700
393,135,804
35,037,022
40,055,465
1,805,987,300
Capital work in progress 4 (a)
5,482,933
Carrying value as on June 30, 2023
1,124,554,309
213,204,700
393,135,804
35,037,022
40,055,465
1,811,470,233
As on June 30, 2022
Particulars
Land
Building
and Other
Constructions
Plant and
Machinery
Furniture
and Fixtures
Office
Equipment
Total
Cost
As on January 01, 2022
Additions
Transferred and capitalized
Disposal during the year
Cost as on June 30, 2022
Accumulated depreciation
As on January 01, 2022
Depreciation charged
Adjustment for assets disposed off
Accumulated depreciation as on June 30, 2022
1,010,047,500
967,684,442
1,139,649,406
126,887,494
286,928,956
3,531,197,798
-
-
-
6,332,836
5,865,249
2,884,955
4,875,747
19,958,787
16,472,807
25,318,390
-
-
-
-
-
-
41,791,197
-
1,010,047,500
990,490,085
1,170,833,045
129,772,449
291,804,703
3,592,947,782
-
-
-
-
(753,388,053)
(794,476,661)
(89,323,599)
(230,742,801)
(1,867,931,114)
(11,597,405)
(22,691,196)
(3,449,149)
(15,170,083)
(52,907,833)
-
-
-
-
(764,985,458)
(817,167,857)
(92,772,748)
(245,912,884)
(1,920,838,947)
Net book value June 30, 2022
1,010,047,500
225,504,627
353,665,188
36,999,701
45,891,819
1,672,108,835
Capital work in progress 4 (a)
Carrying value as on June 30, 2022
222 | Synovia Pharma PLC. | Annual Report 2022-23
25,706,353
1,697,815,188
4 (a) Capital work in progress is arrived at as follows:
Opening balance
Addition during the year
Transferred and capitalized
Building and other constructions
Plant and machinery
Office equipment
Intangible Assets
Closing balance
5. Right-of-use Assets
Opening balance
Additions
Transferred and capitalized
Disposal during the year
Cost as on June 30, 2023
Opening balance
Depreciation charged
Adjustment for assets disposed off
Accumulated depreciation as on June 30, 2023
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Amount in Taka
30 June 2023
30 June 2022
25,706,353
43,195,797
68,902,150
67,451,601
5,211,060
72,662,661
(12,405,970)
(40,481,745)
(7,576,502)
(2,955,000)
(16,472,807)
(25,318,390)
-
(5,165,111)
(63,419,217)
(46,956,308)
5,482,933
25,706,353
142,355,604
142,355,604
7,415,000
-
(15,065,704)
-
-
-
134,704,900
142,355,604
(88,540,902)
(16,759,083)
15,065,704
(79,203,139)
(9,337,763)
-
(90,234,281)
(88,540,902)
Net book value June 30, 2023
44,470,619
53,814,702
6. Intangible assets
Particulars
Brand Valuation
ERP and softwares
Total
Cost
Opening balance
Additions
Transferred and capitalized
Retirement and disposal
As on June 30, 2023
Amortization
Opening balance
Amortized during the year
Adjustment for retirement and disposal
As on June 30, 2023
104,124,112
-
-
-
104,124,112
(81,975,331)
(2,953,171)
-
82,725,701
12,549,596
2,955,000
(16,657,377)
186,849,813
12,549,596
2,955,000
(16,657,377)
81,572,920
185,697,032
(73,213,655)
(155,188,986)
(4,196,164)
16,038,634
(7,149,335)
16,038,634
(84,928,502)
(61,371,185)
(146,299,687)
Carrying value as on June 30, 2023
19,195,610
20,201,735
39,397,344
Carrying value as on June 30, 2022
22,148,780
9,512,046
31,660,826
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7. Deferred tax asset
Opening balance
Deferred tax (expenses)/income
Closing balance of net deferred tax asset
(Note-33.b)
88,640,228
(32,128,147)
56,512,081
70,796,445
17,843,783
88,640,228
Amount in Taka
30 June 2023
30 June 2022
8. Inventories
Raw materials
Packing materials
Work-in-progress
Material-in-transit
Finished goods
Spares and suppliers
9. Trade and other receivables
Trade receivables
Other receivables
Aging of Trade receivables:
Amount due within 6 months
Amount due over 6 months
Accounts receivable is reported net of provision for bad debts of TK. 17,086,228.
10. Advances, deposits and prepayments
VAT
Security deposits
Motor vehicle advance
Advance to suppliers
Prepaid insurance
Advance for expenses
Others
11. Advance income tax
Opening balance
Provision made during the year
Paid during the year
Closing balance
12. Cash and cash equivalents
Cash at Bank
Cash at Depot
224 | Synovia Pharma PLC. | Annual Report 2022-23
443,817,951
98,734,781
53,183,935
378,402,098
641,879,087
10,326,074
255,360,426
45,179,670
23,081,328
164,128,424
578,007,975
-
1,626,343,926
1,065,757,823
255,585,525
16,221,176
271,806,701
418,311,797
10,346,835
428,658,632
200,810,555
54,774,970
255,585,525
418,311,797
-
418,311,797
33,972,109
40,533,917
70,133,311
32,746,965
9,703,807
40,094,530
22,708,838
29,078,016
49,542,526
50,578,953
-
10,833,188
40,398,965
23,593,505
249,893,477
204,025,153
196,635,027
(75,827,268)
106,810,629
227,618,388
185,447,914
(28,137,982)
39,325,095
196,635,027
21,605,978
38,227,818
59,833,796
171,599,695
-
171,599,695
13. Share capital
a) Authorized capital
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30 June 2023
30 June 2022
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)
c) Shareholding position
Beximco Pharmaceuticals Limited.
Ministry of Industries
Bangladesh Chemical Industries Corporation
Other Shareholders
14. Share premium
602,700
602,700
179,496,700
179,421,000
179,496,700
179,421,000
358,917,700
358,917,700
359,520,400
359,520,400
Shareholding
Quantity
%
1,963,241 54.61%
196,324,100
196,324,100
911,767 25.36%
91,176,700
91,176,700
717,679 19.96%
71,767,900
71,767,900
2,517
0.07%
251,700
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 Limited 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.
15. Reserves and surplus
Non-distributable special reserve (note 15.1)
Capital reserve
3,777,710
3,777,710
9,100
9,100
3,786,810
3,786,810
15.1 This represents 90% of cumulative post tax profit of certain categories of income up to the year 1992 as defined and directed by
Bangladesh Bank.
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16. Long term liability for pension fund
a. Pension Payable
Opening balance
Provision made during the year
Accrued Interest
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
30 June 2023
Amount in Taka
30 June 2022
6,452,939
-
-
(568,524)
-
5,884,415
6,684,836
-
-
(231,897)
-
6,452,939
1,118,723
-
-
(568,524)
550,199
1,350,620
-
-
(231,897)
1,118,723
Closing balance
5,334,216
5,334,216
During the transfer of ownership by Sanofi Group, the eligible current and ex-employees except 14 members of the fund expressed their
desire to settle their pension benefits and the Board of Trustees of the Pension Fund accordingly paid Pension benefits fully and finally to
each of them. Of the remaining 14 members, eight have expressed their intention to close their account. Company’s provision is considered
adequate to meet the obligation of all the remaining members and as such no provision has been made on this account during the financial
period.
17. Long term liability for gratuity and WPPF funds
a. Gratuity Payable
Opening balance
Provision made during the year
Accrued Interest
Paid to employees during the year
b. Investment/Plan asset
Opening balance
Transfer during the year
Interest income
Paid to employees during the year
222,065,152
17,040,500
4,093,721
(6,998,829)
236,200,544
103,747,114
12,466,803
4,093,721
(6,998,829)
113,308,809
199,282,939
24,933,606
-
(2,151,393)
222,065,152
80,964,901
24,933,606
-
(2,151,393)
103,747,114
Closing balance
122,891,735
118,318,038
c. Liability for workers’ profit participation fund
Opening balance
Loan recovery
Paid during the year
Closing balance
Total
Liability for WPPF represents excess provision made in previous periods.
226 | Synovia Pharma PLC. | Annual Report 2022-23
5,362,937
371,000
(498,750)
5,235,187
5,217,687
145,250
-
5,362,937
128,126,922
123,680,975
18. Long term borrowings
Long term borrowings consist of:
a. Lease liabilities- long term maturity
b. Lease liabilities- current maturity
Total lease liability is arrived at as follows:
Opening balance
Addition during the year
Payment during the year
Closing Balance
19 Short term borrowings
19.1 Bank overdraft
Standard Chartered Bank
Citibank
Dhaka Bank
19.2 Short term loan
Dhaka Bank Limited
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Amount in Taka
30 June 2023
30 June 2022
35,673,860
16,866,817
52,540,677
59,645,523
7,415,000
(14,519,847)
52,540,676
-
-
509,965,518
509,965,518
118,722,986
118,722,986
39,836,338
19,809,185
59,645,523
67,324,703
-
(7,679,180)
59,645,523
24,913,289
184,741
321,236,997
346,335,027
-
-
Closing balance
628,688,504
346,335,027
Short Term Borrowing from Dhaka Bank Limited represents revolving credit facilities (Overdraft Facilities) renewable annually. The
borrowing carries 9% Interest. The loan is secured against hypothecation of floating assets of the Company and a corporate guarantee by
parent company, Beximco Pharmaceuticals Limited.
20. Trade and other payables
Payable for goods and services
21. Accrued expenses
For expenses
22. Dividend payable
Opening balance
Dividend declared during the year
Paid for the year
Closing balance
992,187,495
992,187,495
489,678,689
489,678,689
347,633,221
347,633,221
491,803,439
491,803,439
208,677
-
-
208,677
192,297
53,928,060
(53,911,680)
208,677
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23. Revenue
Locally manufactured product
Imported finished product
Toll manufactured income
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 finished goods
Finished goods available
Finished goods purchased
Cost of sample
Closing finished goods
24.1 Materials consumed
Opening stock
Purchase
Goods available for use
Closing stock
24.2 Factory overhead
Salary and allowances
Depreciation and amortization
Printing and stationery
Repairs and maintenance
Telephone, cellphone, internet and postage
Travelling and conveyance
Toll expense
Electricity, gas and water
Entertainment
Insurance premium
Municipal tax
Training and conference
Security expenses
Research and development
Registration and renewal
Other Expenses
For the year
ended 30
June 2023
For the six
month period
January-June 2022
Amount in Taka
For the year
ended 31
December 2021
2,104,696,765
1,037,249,903
388,035,521
-
816,831,755
433,118,008
176,812,179
-
1,268,065,964
665,778,406
385,634,691
16,815,549
3,529,982,189
1,426,761,942
2,336,294,610
23,081,328
951,878,572
603,622,529
1,578,582,429
(53,183,935)
1,525,398,494
578,007,975
2,103,406,469
804,670,592
(2,731,520)
(641,879,087)
2,263,466,454
18,709,237
342,020,748
324,907,295
685,637,280
(23,081,328)
662,555,952
556,966,127
1,219,522,079
241,868,537
-
(578,007,975)
10,632,569
674,464,215
533,521,110
1,218,617,894
(18,709,237)
1,199,908,657
390,053,623
1,589,962,280
548,662,601
-
(556,966,127)
883,382,641
1,581,658,754
300,540,096
1,193,891,208
1,494,431,304
(542,552,732)
216,110,165
426,450,679
642,560,844
(300,540,096)
137,931,207
752,643,173
890,574,380
(216,110,165)
951,878,572
342,020,748
674,464,215
333,982,500
89,738,288
8,487,986
56,048,451
1,664,355
4,108,100
10,484,779
69,491,524
2,037,986
9,329,050
1,303,235
2,468,493
6,914,171
2,127,982
1,482,246
3,953,383
603,622,529
190,673,349
41,792,317
8,532,027
34,245,023
876,725
6,533,479
3,241,178
18,554,010
2,641,451
7,523,442
894,061
3,016,733
3,173,140
924,778
630,617
1,654,965
283,584,871
77,225,122
15,931,800
55,866,607
1,720,395
13,502,465
1,102,710
47,708,238
3,629,809
16,643,384
1,857,447
1,269,307
8,886,124
1,376,971
1,233,433
1,982,427
324,907,295
533,521,110
a. Salary and allowance include Company’s contribution to Provident fund amounting to Tk. 5,494,852 and Gratuity fund amounting to
Tk. 4,320,551
b. Repairs and maintenance includes maintenance of office, premises, vehicle, building, equipment and other infrastructures.
228 | Synovia Pharma PLC. | Annual Report 2022-23
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25. Administrative expenses
Salary and allowances
Depreciation and amortization
Printing and stationery
Repairs and maintenance
Telephone, cellphone, internet and postage
Legal and consultancy
Travelling and conveyance
Audit fees
Electricity, gas and water
Entertainment
Registration and renewal
Training and conference
Municipal tax
Rent
Meeting fees
Security expenses
AGM expense
Other expenses
For the year
ended 30
June 2023
For the six
month period
January-June 2022
Amount in Taka
For the year
ended 31
December 2021
101,424,946
4,093,187
3,392,510
6,627,521
699,617
5,122,111
543,660
800,000
3,462,975
564,892
2,929,430
388,523
219,329
-
492,708
5,595,693
386,238
3,237,201
139,980,541
53,299,145
5,438,321
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
85,691,636
120,883,335
13,027,913
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
217,889,028
a. Salary and allowance includes Company’s contribution to provident fund amounting to Tk. 1,693,232 and gratuity fund amounting to Tk.
1,201,298
b. Repairs and maintenance includes maintenance of office, premises, vehicle, building, equipment and other infrastructures.
26. Selling, marketing and distribution expenses
Salary and allowances
Software and licenses
Depreciation and amortization
Printing and stationery
Repairs and maintenance
Telephone, cellphone, internet and postage
Travelling and conveyance
Trade subscription
Entertainment
Advertisement
Insurance premium
Registration and renewal
Training and conference
Salesforce logistics
Rent
Sample expense
Literature and news letter
Sales promotion expenses
Events, programs and campaign
Field operation
Brand development
Market research and new products
Distribution commission
Other expenses
501,759,481
38,817,769
44,274,880
693,554
30,929,619
18,532,351
86,835,126
-
2,574,458
614,177
10,417,546
1,443,278
6,674,009
3,090,054
458,414
3,859,748
41,419,095
18,145,231
132,749,378
1,065,765
69,020,407
6,150,865
176,044,438
838,965
295,415,956
44,042,374
17,662,793
1,474,502
2,483,904
7,633,690
30,821,855
-
866,468
1,111,000
6,851,653
683,232
2,245,987
1,311,476
-
2,109,856
10,750,476
7,741,574
47,894,915
-
19,314,238
2,349,892
69,812,844
20,419
471,127,649
21,238,484
34,325,120
2,464,229
8,125,239
10,569,292
42,267,299
1,239,525
3,052,381
3,432,891
13,636,740
238,900
10,336,778
2,836,220
2,820,712
2,027,618
13,502,937
10,512,863
49,284,478
-
17,335,292
4,731,338
-
71,608,820
1,196,408,608
572,599,104
796,714,805
a. Salary and allowance includes Company’s contribution to provident fund amounting to Tk. 12,626,918 and gratuity fund amounting to
Tk. 11,518,651
b. Repairs and maintenance includes maintenance of office, premises, vehicle, building, equipment and other infrastructures.
c. Sample expenses include VAT on sample.
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27. Finance cost
Interest on bank borrowings
Net interest cost-actuarial valuation
Interest on finance lease obligation
Bank charges
28. Other income
Interest income
Profit/(loss) on sale of fixed assets
Forfeited PF refund
Rental income
Forfeited PF refund
For the year
ended 30
June 2023
For the six
month period
January-June 2022
Amount in Taka
For the year
ended 31
December 2021
37,198,497
-
5,699,323
2,783,330
45,681,150
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
682
101,577
2,383,667
5,436,254
26,395,502
34,216,105
-
-
14,606,890
14,708,467
1,740,043
10,482,510
3,946,097
33,341,420
49,510,070
In compliance to FRC circular no.179/FRC/FRM/Notification /2020/2 dated July 7, 2020 the company has recovered the forfeited PF
contribution from the Provident Fund Trust which has been reported as forfeited PF refund.
29. Contingent liability
1. There are contingent liabilities aggregating Tk. 364,473,968 for disputed VAT claims lying with honorable High Court. The Company has
provisioned for Tk. 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 final disposal.
2. The Company provided bank guarantees for a total amount of Tk. 18,670,102 in favor of “Titas Gas Transmission Distribution Company”
and “Green Delta Insurance Company Limited” in connection with operation of the business.
Amount in Taka
For the year
ended
30 June 2023
For the six month
period January-
June 2022
(189,293,874)
(124,221,333)
3,595,204
(52.65)
3,595,204
(34.55)
30. Earnings per share (EPS)
Earnings attributable to the ordinary shareholders
Number of share
Earnings per share (EPS)
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Amount in Taka
For the year
ended
30 June 2023
For the six month
period January-
June 2022
4,387,346,565
(2,154,719,712)
3,938,607,274
(1,516,686,547)
2,232,626,853
2,421,920,727
3,595,204
621.00
3,595,204
673.65
31. Net asset value (NAV) per share
Total assets
Less :Total liabilities
Net assets
Number of shares
Net asset value (NAV) per share
32. Net operating cash flows per share (NOCFPS)
Net cash generated from operating activities
Number of ordinary share
Net operating cash flows per share (NOCFPS)
(139,244,361)
(145,872,250)
3,595,204
(38.73)
3,595,204
(40.57)
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 differences
Tax rate
Deferred Tax Liability/(Asset) at end of the period
Deferred Tax Liability/(Asset) at beginning of the period
Deferred Tax Expense/(Income)
(75,827,268)
(28,137,982)
195,693,431
(128,225,951)
-
(272,965,958)
(205,498,478)
27.50%
(56,512,081)
(88,640,228)
206,672,792
(123,652,254)
(141,975,425)
(263,373,215)
(322,328,102)
27.50%
(88,640,228)
(70,796,445)
32,128,147
(17,843,783)
Reconciliation of Effective tax rate:
Loss before tax
Applicable Tax (27.5%)
Effect of permanent disallowance
Effect of minimum tax
Effect of other income
Deferred tax impact
Income Tax Expense
July 2022- June 2023
Jan 2022-June 2022
%
Tk
%
Tk
-
2.97%
60.54%
6.72%
29.76%
81,338,459
-
3,209,980
65,358,337
7,258,951
32,128,147
-
16.02%
257.32%
-
-173.34%
113,927,134
-
1,649,241
26,488,742
-
(17,843,783)
100.00% 107,955,415
100.00% 10,294,200
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34. Reconciliation of Net Profit with Cash Flows from Operating Activities:
Profit after tax
(189,293,874)
(124,221,333)
Adjustment to reconcile net profit to net cash Generated from Operating Activities :
Amount in Taka
For the year
ended
30 June 2023
For the six month
period January-
June 2022
Non-cash/Non-operating items:
Depreciation
Amortization
Gain on disposal of fixed assets
Deferred Tax
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
Net Cash Generated from Operating Activities
35. Related party disclosures
167,850,835
130,957,020
7,149,335
(2,383,667)
47,049,650
62,245,597
2,647,834
-
32,128,147
(17,843,783)
(117,801,320)
(68,700,567)
(560,586,103)
15,275,534
156,851,931
100,094,113
(45,868,324)
11,174,559
502,508,806
(199,889,160)
(144,170,218)
15,686,251
4,445,947
145,249
(30,983,361)
(11,187,113)
(139,244,361)
(145,872,250)
During the period ended 30 June 2023, the Company entered into the following transactions with its related party:
Name of Related Parties
Nature of Transactions
Toll income
Value of
Transaction
246,862,902
Balance as of
30 June 2023
Balance Type
Beximco Pharmaceuticals Limited
Cost of goods and services
213,239,237
160,092,598
Cr.
Distribution Commission
176,044,439
36. Foreign currency payment & receipts:
The Company made payments of USD 13,262,900 equivalent to Tk. 1,458,919,018 in connection with import of materials, finished products,
machinery, spares and IT related services during the reporting period.
232 | Synovia Pharma PLC. | Annual Report 2022-23
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37. Factory capacity
July 2022- June 2023
Capacity
Production
Utilization (%)
Tablet , Capsule & suppository
Dry syrup, Injectables & Cream
Pcs
Pcs
653,833,333
671,450,267
16,968,333
21,055,064
103%
124%
Capacity utilization is calculated based on single shift production. Actual produciton includes product manufactured for third parties but does
not include SPP’s products manufactured at third party plants on toll manufacturing basis.
38. Capital management and Capital commitments
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.
Capital commitment
There is no capital commitment at the date of the statement of financial position.
39. Directors’ remuneration
No remuneration has been paid to the Directors other than the fee for attending board meetings.
40. Receivable from Directors
There is no receivable from the directors at the date of the statement of financial position.
41. Employee details
The number of full time employees as on 30 June 2023 was 1,010 (June 2022: 824)
42. Events after the reporting period:
The Board of Directors of the Company recommended 10% cash dividend (i.e. TK. 10/- per share of TK. 100 each) for the year 2022-23. The
Dividend proposal is subject to shareholders’ approval at the forthcoming Annual General Meeting.
Annual Report 2022-23 | Synovia Pharma PLC. | 233
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Financial Statements
Beximco Pharma API Limited
For the Year ended June 30, 2023
234 | Beximco Pharma API Limited | Annual Report 2022-23
234 | Beximco Pharma API Limited | Annual Report 2022-23
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DIRECTORS’ REPORT
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, 2023 along with the report of the auditors thereon.
OPERATION
You are aware that 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. We have started looking for technology partners and dialogue is going on with
several global API players. As soon as the technology partner is finalized and economic situation improves in Bangladesh, we shall commence
project works.
Since there was no commercial operation, no operating expense incurred except a few regulatory expenses as reported in the financial 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 2023. M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C.R. Datta Road, Dhaka-1205,
the Auditors of the Company has expressed their willingness to continue in office for the year 2023-24. 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
2023-24.
On behalf of the Board
Nazmul Hassan MP
Chairman
Annual Report 2022-23 | Beximco Pharma API Limited | 235
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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 financial statements of Beximco Pharma API Limited, which comprise the statement of financial position as at 30 June 2023,
and statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 30 June 2023 and
of its financial performance and its cash flows for the year then ended in accordance with international Financial Reporting Standards (IFRSs), the
Companies Act 1994 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional
Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the IESBA code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and those Charged with Governance for the Financial Statements.
Management is responsible for the preparation and fair presentation of these financial statements in accordance with, International Financial
Reporting Standards (IFRSs), the Companies Act 1994, other applicable laws and regulations and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decision
of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional Skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidences that is sufficient and appropriate to provide a basis for audit
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidences
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidences obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
236 | Beximco Pharma API Limited | Annual Report 2022-23
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• Obtain sufficient appropriate audit evidence regarding the financial information of the business activities of the company to express
an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
Report on other Legal and Regulatory Requirements
In accordance with the 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 verification thereof;
b) In our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination
of these books and;
c) The statement of Financial Position (Balance Sheet) and Statement of Profit or Loss and Other Comprehensive Income (Profit and Loss
Account) dealt with by the report are in agreement with the books.
Dhaka
October 19, 2023
M. J. ABEDIN & CO.
Chartered Accountants
Reg No. CAF-001-111
Hasan Mahmood FCA
Enrollment No. 0564
DVC: 2310230564AS237512
Annual Report 2022-23 | Beximco Pharma API Limited | 237
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Beximco Pharma API Limited
Statement of Financial Position
As at June 30, 2023
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, 2023
June 30, 2022
Amount in Taka
4
5
20,000,000
20,000,000
20,000,000
20,000,000
2,115
2,115
25,920
25,920
20,002,115
20,025,920
18,083,439
20,000,000
(1,916,561)
1,918,676
745,350
1,153,326
20,000
18,122,764
20,000,000
(1,877,236)
1,903,156
729,830
1,153,326
20,000
TOTAL EQUITY AND LIABILITIES
20,002,115
20,025,920
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS237512
238 | Beximco Pharma API Limited | Annual Report 2022-23
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Beximco Pharma API Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year ended June 30, 2023
Revenue
Cost of Revenue
Gross Operating Profit/(Loss)
Notes
July 2022 - June 2023 July 2021 - June 2022
Amount in Taka
-
-
-
-
-
-
Administrative Expenses
6
(39,325)
(79,160)
Profit/(Loss) from Operations
Income Tax Expense
Net Profit/(Loss) after Tax
Other Comprehensive Income
(39,325)
-
(39,325)
(79,160)
-
(79,160)
-
-
Total Comprehensive Income/(Loss) for the Year
(39,325)
(79,160)
Earnings Per Share (EPS)
(0.02)
(0.04)
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS237512
Annual Report 2022-23 | Beximco Pharma API Limited | 239
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Beximco Pharma API Limited
Statement of Changes in Equity
For the Year ended June 30, 2023
As at June 30, 2023
Balance as on July 01,2022
Particulars
Share Capital
Retained Earnings
Total
20,000,000
(1,877,236)
18,122,764
Amount in Taka
Net Loss for the Year
-
(39,325)
(39,325)
Balance as on June 30, 2023
20,000,000
(1,916,561)
18,083,439
Net Asset Value (NAV) Per Share
9.04
As at June 30, 2022
Balance as on July 01,2021
20,000,000
(1,798,076)
18,201,924
Particulars
Share Capital
Retained Earnings
Total
Amount in Taka
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
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS237512
240 | Beximco Pharma API Limited | Annual Report 2022-23
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Beximco Pharma API Limited
Statement of Cash Flows
For the Year ended June 30, 2023
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
July 2022 - June 2023
July 2021 - June 2022
Amount in Taka
15,520
(39,325)
(23,805)
50,000
(79,160)
(29,160)
-
-
-
-
Increase / (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
(23,805)
25,920
2,115
(29,160)
55,080
25,920
Net Operating Cash Flows Per Share
(0.01)
(0.01)
The Notes are an integral part of the Financial Statements.
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Per our report of even date
Dhaka
October 19, 2023
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2310230564AS237512
Annual Report 2022-23 | Beximco Pharma API Limited | 241
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Beximco Pharma API Limited
Notes to the Financial Statements
As at and for the year ended June 30, 2023
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 financial statements have been prepared under historical cost convention which does not take into consideration the effect of inflation.
2.2 Statement of Compliance
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1994 and International Financial
Reporting Standards (IFRSs), and other relevant and applicable local laws and regulations.
2.3 Presentation of Financial Statements
The financial statements comprise of:
a) Statement of Financial Position as at June 30, 2023;
b) Statement of Profit or Loss and other Comprehensive Income for the year ended June 30, 2023;
c) Statement of Changes in Shareholders’ Equity for the year ended June 30, 2023;
d) Statement of Cash Flows for the year ended June 30, 2023 and
e) Notes, comprising summary of significant accounting policies and explanatory information.
2.4 Reporting Period
Financial Statements of the company cover the period of 12 months from July 01, 2022 to June 30, 2023.
3. Functional and Presentation Currency
The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the company’s functional currency. All financial
information presented has been rounded off to the nearest Taka.
242 | Beximco Pharma API Limited | Annual Report 2022-23
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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 19, 2023
June 30, 2023
Amount in Taka
June 30, 2022
2,115
2,115
25,920
25,920
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
99.999
0.001
100
Amount in Taka
July 2022 - June 2023
July 2021 - June 2022
15,520
20,000
805
3,000
39,325
55,470
20,000
690
3,000
79,160
Mohammad Ali Nawaz
Director
Annual Report 2022-23 | Beximco Pharma API Limited | 243
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Notice of Annual General Meeting
BEXIMCO PHARMACEUTICALS LIMITED
17, Dhanmondi R/A, Road No. 2, Dhaka-1205
NOTICE OF THE 47TH ANNUAL GENERAL MEETING
Notice is hereby given that the 47th Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held under Virtual
Platform on Thursday, the 28th December, 2023 at 10.30 a.m. to transact the following business:
1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended on 30th June, 2023 together with reports
AGENDA
of the Auditors and the Directors thereon.
2. To declare 35% cash dividend.
3. To elect Directors.
4. To approve the re-appointment of Independent Director.
5. To appoint Auditors for the year 2023-24 and to fix their remuneration.
6. To appoint Corporate Governance Compliance Auditors for the year 2023-24 and to fix their remuneration.
By order of the Board,
Dated: November 05, 2023
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. 13
November, 2023 will be entitled to attend at the Annual General Meeting and to receive the dividend.
(2) A Member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy Form, duly
stamped, must be deposited at the Registered Office of the Company, not later than 48 hours before the time fixed for the meeting.
(3) Annual Report for the year 2022-23 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 24 (Twenty-four) hours before commencement of the AGM and also during the AGM. For logging
into the system, the Shareholders need to put their 16-digit Beneficial Owner (BO) ID/Folio Number and other credential as proof by visiting the
said link.
(5) We encourage the Shareholders to login into the system prior to the meeting. Please allow ample time to login and establish your connectivity.
For any IT related guidance, Shareholders may contact vide email : monir@beximco.net or mazibur@beximco.net .
244 | Notice of Annual General Meeting | Annual Report 2022-23
244 | Beximco Pharma API Limited | Annual Report 2022-23
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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 47th Annual General Meeting of the Company to
be held on Thursday, 28th December, 2023 at 10.30 a.m. under virtual platform and at any adjournment thereof.
As witness my hand this……………………………..day of December, 2023.
Signed by the said in presence…………………………………………………………
Revenue
Stamp
Tk. 100.00
………………………………….. ………………………………………………..................................
(Signature of Proxy) Signature of Shareholder(s)
Dated: ……………………….. Register Folio / BOID No.: …………………………………………………..
………………………….....
(Signature of Witness)
Dated: ……………………………
Note: A member entitled to attend and vote at the Annual General Meeting may appoint a Proxy to attend and vote in his/her stead.
The Proxy Form, duly stamped, must be deposited at the Registered Office of the Company not later than 48 hours before the time
fixed for the meeting.
Signature Verified
Authorised Signatory
…………………………………
Annual Report 2022-23 | Proxy Form | 245
Annual Report 2022-23 | Beximco Pharma API Limited | 245
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246 | Beximco Pharma API Limited | Annual Report 2022-23
www.beximcopharma.com
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