ANNUAL
U
REPORT
2023-24
ABOUT US
Annual Report 2023-24 | About Us | 1
BEXIMCO PHARMACEUTICALS LIMITED
ANNUAL
REPORT
2023-24
ABOUT US
2 | About Us | Annual Report 2023-24
ABOUT US
2 | About Us | Annual Report 2023-24
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.
Governance
Board and Board Committees
83
Executive Committee
83
Management Committee
85
Statements and Reports
Report of the Directors
87
Management Discussion and Analysis
107
Report of the Audit Committee
112
Report on the Activities of NRC
114
Investor Relations
117
Audited Financials
Beximco Pharmaceuticals Ltd. and
its Subsidiaries (Consolidated)
124
Beximco Pharmaceuticals Limited (Stand-alone)
147
Nuvista Pharma Limited
182
Synovia Pharma PLC
208
Beximco Pharma API Limited
235
Notice of Annual General Meeting
245
Proxy Form
247
Contents
About Us
The Company
06
Purpose
08
Journey
10
Subsidiaries
12
Products
15
Global Footprint
28
Manufacturing Capabilities
31
Research and Development
37
Global Accreditations
39
Performance Highlights
Operational
42
Financial
44
Value Added Statement
48
Key Financial Indicators
49
Accolades and Awards
52
Environmental, Social and Governance
Environmental
Environment, Health, and Safety
58
Environmental Sustainability Measures
60
Protection of Health and Industrial Hygiene
63
Social
Human Resource
66
Learning and Development
67
Corporate Events and CSR Initiatives
72
ABOUT US
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“Beximco Pharma aspires to become a globally admired generic
pharmaceutical company, committed to enhancing human health and life.”
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ABOUT US
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ABOUT US
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ABOUT US
The Company
Beximco Pharmaceuticals Limited is a leading manufacturer and exporter of medicines based in Bangladesh. Founded in 1976,
the Company started its operations by importing and marketing pharmaceutical products from Bayer, Germany and Upjohn, USA.
By 1980, Beximco Pharma began manufacturing these products locally under licensing agreements but quickly transitioned to
manufacturing its own proprietary formulations in 1983, marking a significant milestone in its journey. Over the years the Company
has consistently progressed with remarkable success in both local and international markets. Today, Beximco Pharma is recognized
as an emerging global generic pharma company in the region.
With a diverse portfolio of more than 300 products, the Company covers nearly all therapeutic categories, serving the healthcare
needs of millions. The Company’s state-of-the-art manufacturing facilities and compliance to stringent global regulatory standards
have earned it a reputation as a trusted provider of affordable and reliable generic medicines. Beximco Pharma exports its products
to over 60 countries, including regulated markets such as the USA, Europe, Canada, and Australia.
Through innovation and a commitment to quality, the Company has achieved consistent growth and gained recognition from various
national and international organizations for excellence in pharmaceutical manufacturing and exports. It received the National Export
(Gold) trophy nine times. The Company’s long list of accolades includes prestigious international awards such as SCRIP Award 2017
(“Best Pharma Company in an Emerging Market”), Global Generics & Biosimilar Awards 2019 (“Company of the Year, Asia Pacific”),
CPhI Pharma Awards 2020 (“Innovation in Response to COVID-19”), and Global Generics & Biosimilar Awards 2021 (“Company of
the Year, Asia Pacific”).
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 and its subsidiaries employ over 8,000 full time employees, including professionals like
pharmacists, doctors, engineers, chemists, microbiologists, accountants, lawyers, information technology specialists, and graduates
from other disciplines.
6 | About Us | Annual Report 2023-24
ABOUT US
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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
Corporate Information
Registered Office
17 Dhanmondi, Road No. 2
Dhaka- 1205, Bangladesh
Phone: +880-2-58611891
Fax: +880-2-58613470
Factory
126 Kathaldia, Auchpara, Tongi
Gazipur, Bangladesh
Stock Exchange Listing
Dhaka Stock Exchange
Chittagong Stock Exchange
AIM of London Stock Exchange
Public Relations
IMPACT PR
Apartment No. A-1, House No. 17
Road No. 4, Gulshan-1
Dhaka-1212, Bangladesh
FTI Consulting LLP
200 Aldersgate
Aldersgate Street, London EC1A 4HD
United Kingdom
Legal Advisor
The Law Counsel
Barristers and Advocates
Suite No. A-12, Green City Square
750 Satmasjid Road, Dhanmondi
Dhaka- 1209
Bankers
Janata Bank PLC
Dhaka Bank PLC
Agrani Bank PLC
ODDO BHF SE, Germany
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
Beximco Pharma API Limited
17 Dhanmondi, Road No. 2
Dhaka-1205, Bangladesh
Synovia Pharma PLC
6/2/A Segun Bagicha
Dhaka-1000, Bangladesh
Factory
Station Road
Tongi, Gazipur, Bangladesh
Associate
BioCare Manufacturing Sdn Bhd
Seri Iskandar Pharmaceutical Park
32600 Bota, Perak, Malaysia
Annual Report 2023-24 | About Us | 7
ABOUT US
ABOUT US
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ABOUT US
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Mission
We are committed to enhancing human health and wellbeing by providing contemporary and
affordable medicines, manufactured in full compliance with global quality standards. We
continually strive to improve our core capabilities to address the unmet medical needs of the
patients and to deliver outstanding results for our shareholders.
Vision
We will be one of the most trusted, admired and successful pharmaceutical companies in the
region with a focus on strengthening research and development capabilities, creating
partnerships and building presence across the globe.
Core Values
Our core values define who we are; they guide us to take decisions and help realize our
individual and corporate aspirations.
Commitment to Quality
We adopt industry best practices in all our operations to ensure highest quality
standards of our products.
Customer Satisfaction
We are committed to satisfying the needs of our customers, both internal and
external.
People Focus
We give high priority on building capabilities of our employees and empower them to
realize their full potential.
Accountability
We encourage transparency in everything we do and strictly adhere to the highest
ethical standards. We are accountable for our own actions and responsible for
sustaining corporate reputation.
Corporate Social Responsibility
We actively take part in initiatives that benefit our society and contribute to the
welfare of our people. We take great care in managing our operations with high
concern for safety and environment.
Purpose
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Strategic Goals
Beximco Pharma pursues a set of strategic goals that reflect 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
significant 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 efficiency.
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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ABOUT US
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ABOUT US
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Started
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10 | About Us | Annual Report 2023-24
ABOUT US
Annual Report 2023-24 | About Us | 11
ABOUT US
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2020-21
• Acquired 54.6% stake in San
Bangladesh Limited
• Became exclusive distributor
Serum Institute of India for
AstraZeneca/ Oxford's Covishie
vaccine in Bangladesh
• CPhI Pharma Award 2020
for“Innovation in response to COVID
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Pacific” at the Global Generics a
Biosimilar Awards 2021
ofi
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Annual Report 2023-24 | About Us | 11
ABOUT US
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ABOUT US
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Subsidiaries
Nuvista Pharma Limited
Nuvista Pharma Limited (formerly Organon Bangladesh Limited) has a rich heritage rooted in its beginnings as a subsidiary of
Organon International, the Netherlands-based pharmaceutical giant. Established in 1964, Nuvista Pharma has played a significant
role in the pharmaceutical landscape of Bangladesh, operating a local manufacturing facility in Tongi, Gazipur, near the capital city,
Dhaka. After Organon divested its ownership to local management in 2006, the Company was renamed Nuvista Pharma Limited, and
in 2018, Beximco Pharma acquired a majority shareholding (85.22%), enhancing its capabilities and reach.
Building on Organon’s legacy of quality and manufacturing excellence, Nuvista Pharma specializes in a wide range of pharmaceutical
products that include hormone therapies, steroids, and various general medicines. The Company’s offerings span multiple dosage
forms, such as tablets, capsules, injectables, and ophthalmic solutions, each developed with strict quality standards to meet healthcare
demands. In particular, Nuvista Pharma has a dominant presence in the oral contraceptives market and is highly regarded for its
expertise in hormone and steroid products, underscoring its role as a pioneer in these areas.
Driven by a core purpose to “provide unconditional care to women and their families for a more empowered womanhood,” Nuvista
Pharma aims to create a world where women’s health and family well-being are prioritized, leading to a healthier, safer, and more
informed society. The Company is dedicated to making a tangible impact on women’s health today for a better tomorrow, all while
advancing human life.
The Company employs around 1,000 people from a broad spectrum of backgrounds, including pharmacists, doctors, engineers,
chemists, microbiologists, accountants, and graduates. Through its broad product portfolio and dedicated workforce, Nuvista Pharma
remains committed to empowering women and enhancing family health across the nation.
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ABOUT US
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ABOUT US
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Synovia Pharma PLC
Synovia Pharma PLC, formerly Sanofi Bangladesh Limited, boasts a distinguished legacy spanning six decades in
Bangladesh’s healthcare sector. Originally established as a subsidiary of the British chemical company May & Baker, the
Company underwent a series of strategic mergers, ultimately becoming Sanofi-Aventis in 2004 and later rebranded as
Sanofi Bangladesh Limited in 2013. In a landmark transition, Beximco Pharma acquired a controlling 54.6% stake in the
Company from Sanofi Group through May & Baker Limited and Fisons Limited on October 1, 2021, and later renamed it
Synovia Pharma PLC. The remaining 45.4% ownership is held by the Government of Bangladesh, represented by Bangladesh
Chemical Industries Corporation (20%) and the Ministry of Industries (25.4%).
Synovia Pharma’s manufacturing facilities, situated on a 25-acre site at Tongi, Gazipur, feature state-of-the-art facilities,
including a PIC/S-compliant cephalosporin production unit. The Company has capabilities across diverse pharmaceutical
technologies, producing tablets, capsules, topicals, liquids, powders for suspension, as well as sterile injectables. Its
Corporate Headquarters is located at Segun Bagicha, Dhaka, housed in a six storied building on 26 katha of land.
The Company is focused on becoming a leading pharmaceutical entity in Bangladesh, driven by its commitment to enhancing
healthcare and improving lives. Currently, Synovia Pharma has over 100 branded generic products and employs over
1,100 employees. It maintains a strong presence in therapeutic areas such as cardiology, diabetes, oncology, dermatology,
and central nervous system (CNS) disorders. Additionally, Synovia continues to import and market global Sanofi brands,
including vaccines, insulins, and chemotherapy treatments, to cater to the needs of the Bangladesh market.
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ABOUT US
14 | About Us | Annual Report 2023-24
We continuously review, update and expand our portfolio
with technology driven products in order to address
the unmet medical needs of our parients
Here’s to perfection and innovation
Here’s to life
14 | About Us | Annual Repo
eport 2023-24
Repor
We continuously review, update and expand our portfolio
with technology driven products in order to address
the unmet medical needs of our parients
Here’s to perfection and innovation
Here’s to life
ABOUT US
Annual Report 2023-24 | About Us | 15
Beximco Pharma currently manufactures around 330 generic drugs in more than 500 formulations. The Company’s products span
a diverse range of therapeutic categories, including antibiotics, analgesics, anti-diabetics, respiratory, cardiovascular, central nervous
system, dermatology, gastrointestinal, and anti-cancer treatments. Beximco Pharma’s expertise in developing specialized and
advanced drug delivery systems, such as metered-dose inhalers, dry powder inhalers, nasal sprays, sterile ophthalmics, lyophilized
injectables, oral thin films, and suppositories, sets it apart in the pharmaceutical industry.
The Company’s market leadership is demonstrated by its strong portfolio of high-quality, trusted brands, including Napa, Napa Extra,
Bizoran, Neofloxin, Atova, Azmasol, Arlin, Bexitrol F, D-Rise, Amdocal, Remmo, Tofen, and Tyclav. These brands have evolved beyond
ordinary medicines to become household names with strong brand equity.
Beximco Pharma is committed to continued innovation, expansion, and diversification to address the unmet therapeutic needs of
people while ensuring affordability. This includes high-value, specialized, and differentiated products that are challenging to replicate.
In addition to manufacturing finished formulations, Beximco Pharma also manufactures active pharmaceutical ingredients (APIs) for
both in-house use and sales to other pharmaceutical companies.
Nuvista Pharma currently manufactures 82 generic drugs in 118 formulations. The company holds a leading market position in
oral contraceptives and has established itself as a pioneer in the hormone and steroid segments, showcasing its expertise in these
specialized fields. Additionally, Nuvista Pharma has growing presence in other therapeutic areas, including women’s health and
hygiene, antibiotics, dermatology and skincare, gastrointestinal health, uro-gynecology, and vitamins and minerals.
Synovia Pharma has over 100 generic pharmaceutical products across diverse therapeutic segments, with a strong presence in
cardiology, diabetes, oncology, dermatology, and central nervous system (CNS) treatments. Alongside local production, the company
imports select global brands from Sanofi, including vaccines, insulin, chemotherapy drugs, and probiotics, for distribution in the
Bangladesh market.
Products
Leading Brands: Beximco Pharma
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
Drops
Paracetamol 80 mg / m
NAPA IV
Injection
Paracetamol 10 mg / ml
NAPA ONE
Tablet
Paracetamol 1000mg
NAPA EXTRA
Tablet
Paracetamol 500 mg + Caffeine 65 mg
NAPA EXTEND
Tablet
Paracetamol 665 mg Extended Release
NAPADOL
Tablet
Paracetamol 325 mg + Tramadol 37.5 mg
NAPA RAPID
Tablet
Paracetamol 500 mg (with Actizorb technology)
Joint Supplement
JOINTEC MAX
Tablet
Glucosamine 750 mg + Diacerein 50 mg
JOINTEC PRO
Tablet
Glucosamine 750 mg + Chondroitin 600 mg
ABOUT US
16 | About Us | Annual Report 2023-24
Muscle Relaxant
RELENTUS
Tablet
Tizanidine 2 mg
NSAIDs
DINOVO
Tablet
Naproxen 375 mg + Esomeprazole 20 mg, Naproxen 500 mg +
Esomeprazole 20 mg
VOLIGEL
Cream
Diclofenac Sodium 1% 50 mg
VOLIGEL MAX
Cream
Diclofenac Sodium 2% 50 mg
XIDOLAC
Tablet
Ketorolac Tromethamine 10 mg
Meltab
Ketorolac Tromethamine 10 mg
Injection
Ketorolac Tromethamine 30 mg / ml
BUFLEX
Tablet
Nabumetone 500mg and 750mg
Anti-Diabetic (OAD)
GLIPITA
Tablet
Sitagliptin 50 mg, Sitagliptin 100 mg
GLIPITA M
Tablet
Sitagliptin 50 mg + Metfomin Hydrochloride 500 mg, Sitagliptin 50 mg
+ Metformin Hydrochloride 1000 mg
GLIPITA M XR
Tablet
Sitagliptin 50 mg + Metfomin Hydrochloride 500 mg XR, Sitagliptin 50
mg + Metformin Hydrochloride 1000 mg XR
TRANETA
Tablet
Linagliptin 5 mg
TRANETA M
Tablet
Linagliptin 2.5 mg + Metformin Hydrochloride 500 mg, Linagliptin 2.5
mg + Metformin Hydrochloride 850 mg, Linagliptin 2.5 mg +
Metformin Hydrochloride 1000 mg
JARDIAN
Tablet
Empagliflozin 10 mg, Empagliflozin 25 mg
JARDIMET
Tablet
Empagliflozin 5 mg + Metformin Hydrochloride 500 mg
JARDIMET XR
Tablet
Empagliflozin 5 mg + Metformin Hydrochloride 1000 mg (extended
release)
Empagliflozin 10 mg + Metformin Hydrochloride 1000 mg (extended
release)
Empagliflozin 25 mg + Metformin Hydrochloride 1000 mg (extended
release)
EMPALINA
Tablet
Empagliflozin 10 mg+ Linagliptin 5 mg, Empagliflozin 25 mg+
Linagliptin 5 mg
INFORMET
Tablet
Metfomin Hydrochloride 500 mg, Metformin Hydrochloride 850 mg,
Metformin Hydrochloride 1000 mg
INFORMET XR
Tablet
Metfomin Hydrochloride 500 mg XR, Metformin Hydrochloride
750 mg XR
Anti-Diabetic
(Insulin)
GENSULIN
Injection
Human Insulin 100 IU / ml Injection
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
Tablet
Rupatadine 10 mg
Syrup
Rupatadine 5 mg / 5 ml
TOFEN
Tablet
Ketotifen Fumarate 1mg
Syrup
Ketotifen Fumarate 1 mg / 5 ml
BILLI
Tablet
Bilastine 20 mg
Meltab
Bilastine 10 mg
Oral Solution
Bilastine
MONOCAST
Tablet
Montelukast 4 mg, Montelukast 5 mg, Montelukast 10 mg
Sachet
Montelukast 4 mg
ABOUT US
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Anti-Allergy
FIXONASE
Nasal Spray
Fluticasone Furoate 27.5 mcg / Actuation
Cough & Cold
DEXTRIM
Syrup
Dextromethorphan Hydrobromide 20 mg + Phenylephrine
Hydrochloride 10 mg + Triprolidine Hydrochloride 2.5 mg / 5 ml
TUSPEL
Syrup
Guaifenesin 200 mg + Dextromethorphan Hydrobromide 15 mg +
Menthol 15 mg / 5 ml
BURATUSS
Tablet
Butamirate Citrate 50 mg
Syrup
Butamirate Citrate 7.5 mg/5 ml
Drops
Butamirate Citrate 5 mg/ml
Anti-Hypertensives
BIZORAN
Tablet
Amlodipine 5 mg + Olmesartan Medoxomil 40 mg, Amlodipine 5 mg +
Olmesartan Medoxomil 20 mg
OLMESAN
Tablet
Olmesartan Medoxomil 10 mg, Olmesartan Medoxomil 20 mg, Olm-
esartan Medoxomil 40 mg
OLMESAN PLUS
Tablet
Olmesartan Medoxomil 20 mg + Hydrochlorothiazide 12.5 mg
CARDOCAL
Tablet
Cilnidipine 5 mg, Cilnidipine 10 mg
LEVAMDOCAL
Tablet
Levamlodipine 1.25 mg, Levamlodipine 2.5 mg, Levamlodipine 5 mg,
TELMA
Tablet
Telmisartan 40 mg, Telmisartan 80 mg
TELMACAL
Tablet
Telmisartan 40 mg + Amlodipine 5 mg, Telmisartan 80 mg +
Amlodipine 5 mg
TELMA PLUS
Tablet
Telmisartan 40 mg + Hydrochlorothiazide 12.5 mg
CARNOVAS
Tablet
Nebivolol 2.5 mg, Nebivolol 5 mg, Nebivolol 10 mg
Lipid Lowering
ATOVA
Tablet
Atorvastatin 10 mg, Atovastatin 20 mg, Atovastatin 40 mg
ATOVA EZ
Tablet
Atorvastatin 10 mg+ Ezetimibe 10 mg, Atorvastatin 20 mg+ Ezetimibe
10 mg
CIBRATE
Tablet
Ciprofibrate 100 mg
ROSUTIN
Tablet
Rosuvastatin 5 mg, Rosuvastatin 10 mg, Rosuvastatin 20 mg
Heart Failure
VIVANTA
Tablet
Sacubitril 24 mg+ Valsartan 26 mg, Sacubitril 49 mg+ Valsartan 51
mg, Sacubitril 97 mg+ Valsartan 103 mg,
Anti-Platelets
TIGEL
Tablet
Ticagrelor 90 mg
Anti-Infectives
ARLIN
Tablet
Linezolid 400 mg, Linezolid 600 mg
Suspension
Linezolid 100 mg / 5 ml
Injection
Linezolide 2 mg / ml IV Infusion
TRIOCIM
Capsule
Cefixime 200 mg, Cefixime 400 mg
Suspension
Cefixime 100 mg / 5 ml, Cefixime 200 mg / 5 ml
TYCLAV
Tablet
Amoxicillin 250mg + Clavulanic Acid 125 mg, Amoxicillin 500 mg +
Clavulanic Acid 125 mg, Amoxicillin 750 mg + Clavulanic Acid 125 mg
Suspension
Amoxicillin 125 mg + Cavulanic Acid 31.25 mg / 5 ml,
Amoxicillin 400 mg + Clavulanic Acid 57 mg / 5 ml
Injection
Amoxicillin 1 Gm + Clavulanic Acid 200 mg, Amoxicillin 500 mg +
Clavulanic Acid 100 mg
TURBOCLAV
Tablet
Cefuroxime 250 mg + Clavulanic Acid 62.5 mg, Cefuroxime 500 mg +
Clavulanic Acid 125 mg
AZITHROCIN
Tablet
Azithromycin 250 mg, Azithromycin 500 mg
Suspension
Azithromycin 200 mg / 5 ml
Injection
Azithromycin 500 mg IV
FILMET
Tablet
Metronidazole 200 mg, Metronidazole 400 mg, Metronidazole 800 mg
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Anti-Infectives
FILMET
Syrup
Metronidazole 200 mg / 5 ml
NEOFLOXIN
Tablet
Ciprofloxacin 750 mg, Ciprofloxacin 500 mg, Ciprofloxacin 250 mg
Injection
Ciprofloxacin 250 mg / 5 ml
Suspension
Ciprofloxacin 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
Sachet
Fosfomycin Trometamol 3 gm
PENOMER
Injection
Meropenem Trihydrate 500 mg, Meropenem Trihydrate 1 gm
BEXOVID
Tablet
Nirmatrelvir 150 mg + Ritonavir 100 mg
BEMSIVIR
Injection
Remdisivir Inn 100 mg, Remdisivir Inn 100mg Lyophilized Powder
EMORIVIR
Capsule
Monlupiravir 200 mg
MULINA
Tablet
Lefamulin 600 mg
Injection
Lefamulin 150 mg/15 ml
Antacids
PROGAVI
Suspension
Sodium Alginate 500 mg + Sodium Bicarbonate 213 mg +
Calcium Carbonate 325 mg
Anti-Ulcerants
ACIFIX
Tablet
Rabeprazole 20 mg
REMMO
Tablet
Esomeprazole 20 mg, Esomeprazole 40 mg
VONOCAB
Tablet
Vonoprazan 10 mg, Vonoprazan 20 mg
VONOCAB TRIO
Tablet
Vonoprazan 20mg+ Amoxicillin 1000mg + Clarithromycin 500mg
Gastroprokinetics
DEFLUX
Tablet
Domperidone 10 mg, Domperidone 10 mg Meltab
Suspension
Domperidone 5 mg / 5 ml
Drops
Domperidone 5 mg / ml
MOPRIDE
Tablet
Prucalopride Succinate 1 mg, Prucalopride Succinate 2 mg
Antidiarrheal
LOPERA
Solution
Loperamide 1 mg/ 5 ml
CNS
FRENXIT
Tablet
Flupentixol 0.5 mg + Melitracen 10 mg
NERVALIN
Capsule
Pregabalin 25 mg, Pregabalin 50 mg, Pregabalin 75 mg
Oral Solution
Pregabalin 100 mg/5 ml
NERVALIN CR
Tablet
Pregabalin 82.5 mg CR, Pregabalin 165 mg CR, Pregabalin 330 mg CR,
XETRIL
Tablet
Clonazepam .5 mg, Clonazepam 2 mg
EMIJOY DS
Tablet
Chlordiazepoxide 10 mg + Amitriptyline Hcl 25 mg
MELATO
Tablet
Melatonin 3 mg
MIDITA
Tablet
Lasmiditan 50 mg, Lasmiditan 100 mg
EMIJOY
Tablet
Chlordiazepoxide 5 mg + Amitriptyline Hcl 12.5 mg
Anti-Fungals
VIVORI
Tablet
Voriconazole 200 mg, Voriconazole 50 mg
OMASTIN
Capsule
Fluconazole 150 mg, Fluconazole 200 mg, Fluconazole 50 mg
Suspension
Fluconazole 50 mg / 5 ml
Injection
Fluconazole 2 mg / ml Infusion
TERBEX
Tablet
Terbinafine 250 Mg
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Anti-Fungals
TERBEX
Cream (5 gm)
Terbinafine HCI 1%
Cream (10 gm)
Terbinafine HCI 1%
LULEXA
Cream (10 gm)
Luliconazole INN 10 mg/gm
Cream (20 gm)
Luliconazole INN 10 mg/gm
Steroids
EXOVATE N
Cream
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
Salbutamol 100 mg / Puff
DPI
Salbutamol 200 mcg / Capsule
Respules
Salbutamol 2.5 mg / 3 ml Ampoule
Respirator
Solution
Salbutamol 2.5 mg / 3 ml Ampoule, Salbutamol 5 mg / ml in amber
glass bottle
BEXITROL-F
MDI
Salmeterol 25 mcg + Fluticasone Propionate 125 mcg,
Salmeterol 25 mcg + Fluticasone Propionate 250 mcg,
Salmeterol 25 mcg + Fluticasone Propionate 50 mcg
DPI
Salmeterol 50 mcg + Fluticasone Propionate 100 mcg,
Salmeterol 50 mcg + Fluticasone Propionate 250 mcg,
Salmeterol 50 mcg + Fluticasone Propionate 500 mcg
MAXHALER
Salmeterol 50 mcg + Fluticasone Propionate 100 mcg,
Salmeterol 50 mcg + Fluticasone Propionate 200 mcg,
Salmeterol 50 mcg + Fluticasone Propionate 500 mcg
SYMBION
DPI
Formoterol Fumarate 6, 12 mcg + Budesonide 100, 400 mcg,
Formoterol Fumarate 6 mcg + Budesonide 200 mcg
MDI
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
Salbutamol 2.5 mg+ Ipratropium 0.5 mg/ 3 ml
Respirator
Solution
Salbutamol 2.5 mg/ml+ Ipratropium 0.5 mg/ml
FLOMYST F
MDI
Fluticasone Propionate 5 mcg + Formoterol Fumarate 50 mcg,
Fluticasone Propionate 5 mcg + Formoterol Fumarate 125 mcg,
Fluticasone Propionate 10 mcg + Formoterol Fumarate 250 mcg
ONRIVA
DPI
Indacaterol Maleate 75 mcg, Indacaterol Maleate 150 mcg
ONRIVA PLUS
DPI
Indacaterol 110 mcg + Glycopyrronium 50 mcg
ONRIVA TRIO
DPI
Indacaterol 150 mcg+ Glycopyrronium 50 mcg+
Mometasone Furoate 160 mcg
TRIBREZ
MDI
Formoterol Fumarate 5.5mcg + Glycopyrronium 10.4mcg + Bude. 182mcg
BILEXA
DPI
Fluticasone Furoate Inn 100 mcg + Vilantero 25 mcg
Fluticasone Furoate Inn 200 mcg + Vilantero 25 mcg
AZMASOL PLUS
MDI
Salbutamol BP 90 mcg and Budesonide 80 mcg
BEXIHALER
(MORA)
Device
Device for DPI
PULMIDONE
Tablet
Pirfenidone Bp 267 Mg
Pirfenidone Bp 801 Mg
Ophthalmic
ODYCIN D
Eye Drops
Moxifloxacin Hcl
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20 | About Us | Annual Report 2023-24
Ophthalmic
NEOFLOXIN
Eye Drops
Ciprofloxacin 0.3%
NEOFLOXIN D
Eye Drops
Ciprofloxacin 0.3% + Dexamethasone 0.1%
Urogenital
URAL-K
Solution
Potassium Citrate 1500 mg + Citric Acid Monohydrate 250 mg / 5 ml
Solution
MIRASOL
Tablet
Mirabegron INN 25 mg, Mirabegron INN 50 mg
UROFLO
Capsule
Tamsulosin Hydrochloride 0.4 mg
UROFI
Capsule
Finasteride 5 mg + Tadalafil 5 mg
Bio-Similar
OGIVRI
Lyophilized
Powder
Trastuzumab INN 440mg/Vial
Chemotherapy
XELOCIN
Tablet
Capecitabine 500 mg
PACLI
IV Infusion
Paclitaxel 6 mg/ml
TINICEV
Tablet
Imatinib 400 mg Tablet
Tablet
Imatinib 100 mg Tablet
GEMZEN
IV Infusion
Gemcitabine 1gm Lyophilized powder for IV Infusion
IV Infusion
Gemcitabine 200mg Lyophilized powder for IV Infusion
Vitamins & Minerals
BEXTRAM GOLD
Tablet
High Potency 32 Multivitamin-Mineral
BEXTRAM
SILVER
Tablet
High Potency 30 Multivitamin-Mineral
D-RISE
Capsule
Cholecalciferol 20000 IU, Cholecalciferol 40000 IU
Tablet
Cholecalciferol 2000 IU
Chewable
Tablet
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
Tablet
Coral Calcium
BECORAL DX
Tablet
Coral Calcium
BECORAL KIT
Tablet
Ibandronic Acid, Calcium 600 mg & Vitamin D3 400 IU
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Leading Brands: Nuvista Pharma
Women’s Health
& Hygiene
TRAXYL
Capsule
Tranexamic Acid 500 mg
TRAXYL
Injection
Tranexamic Acid 500 mg/5ml
VISCERALGINE
Tablet
Tiemonium Methylsulphate 50 mg
VISCERALGINE
Injection
Tiemonium Methylsulphate 5 mg/2 ml
CORABON-D
Tablet
Coral Calcium 500 mg +Vitamin D3 200 IU
CORABON-DX
Tablet
Coral Calcium 600 mg +Vitamin D3 400 IU
Hormone
DYDRON
Tablet
Dydrogesterone 10 mg
DINOGEST
Tablet
Dienogest 2 mg
CAPROGEN
Injection
Hydroxyprogesterone Caproate 250 mg/ml
CAPROGEN/DS
Injection
Hydroxyprogesterone Caproate 500 mg/ 2ml
LINDA-S/DS
Injection
Oxytocin 5 IU, 10 IU
LYNES
Tablet
Ethinylestradiol 0.05 mg + Lynestrenol 2.5 mg
ORGATRIL
Tablet
Lynestrenol 5 mg
THYRONOR
Tablet
Levothyroxine Sodium 12.5 mcg, 25 mcg, 50 mcg, 75 mcg, 100 mcg
ZOLETA
Tablet
Letrozole 2.5 mg
ELAGOX
Tablet
Elagolix 150 mg & 200 mg
Oral Contraceptives
MARVELON
Tablet
Desogestrel 0.15 mg + Ethinylestradiol 0.03 mg
OVOSTAT GOLD
Tablet
Lynestrenol 0.75 mg + Ethinylestradiol 0.0375 mg
ELISA F.C
Tablet
Drospirenone 3 mg + Ethinylestradiol 0.02 mg
Steroids
ROXADEX
Injection
Dexamethasone Sodium Phosphate 5 mg/ml & 6 mg/ml
ROXADEX
Tablet
Dexamethasone 6 mg
DECA-
DURABOLIN
Injection
Nandrolone Decanoate 50 mg/ml
Dermatology and
Skin care
NULIZA
Cream
Luliconazole 1%
Gastrointestinal
DELANZO
Capsule
Dexlansoprazole 30 mg, 60 mg
Antibiotics,
Antiseptics &
Antiinfectives
SANFIX
Capsule
Cefixime 200 mg, 400 mg
SANFIX
Powder for
Suspension
Cefixime 100 mg/ 5ml, 200 mg/ 5ml
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Leading Brands: Synovia Pharma
Anti-allergic AVIL
Tablet
Pheniramine Maleate BP 22.7mg
Injection
Pheniramine Maleate BP 2ml
Syrup
Pheniramine Maleate BP 75ml
PHENERGAN
PLUS
Syrup
Promethazine 6.25mg + Phenylephrine 5mg /5ml
TELFAST
Tablet
Fexofenadine Hydrochloride BP 120mg, 180mg
Suspension
Fexofenadine Hydrochloride BP
Antibiotic BRODACTAM
Injection
Piperacillin 4g + Tazobactum 0.5g/vial USP, Piperacillin 2g +
Tazobactum 0.25g/vial USP
CARBANEM
Injection
Meropenem USP 500mg, 1gm
FIMOXYCLAV
Injection
Amoxycillin BP 500mg + Clavulanic Acid USP 100mg & Amoxycillin BP
1000mg + Clavulanic Acid USP 200mg
Suspension
Amoxycillin BP 125mg + Clavulanic Acid USP 31.25mg/5ml
Tablet 1g
Amoxycillin BP 875mg + Clavulanic Acid USP 125mg, Amoxycillin
BP 250mg + Clavulanic Acid USP 125mg & Amoxycillin BP 500mg +
Clavulanic Acid USP 125mg
Suspension
Amoxycillin BP 400mg + Clavulanic Acid USP 57mg/5ml & Amoxicillin
600mg + Clavulanic Acid 42.9mg/ 5ml
FIMOXYL
Syrup 100ml
Amoxycillin trihydrate BP
Drops 15ml
Amoxycillin trihydrate BP
Capsule
Amoxycillin trihydrate BP 250mg & 500mg
FLAGYL
Tablet
Metronidazole BP 400mg
Suspension
Metronidazole BP
Injection
Metronidazole BP 500mg
KURACEF
Tablet
Cefixime BP 200mg, 400mg
Suspension
Cefixime BP
ORACYN-K
Tablet
Phenoxymethyl penicillin potassium BP 250mg, 500mg
Syrup
Phenoxymethyl penicillin potassium BP
SEFRAD
Syrup
Cephradine BP
Drops
Cephradine BP
Capsule
Cephradine BP 250mg, 500mg
CURAZITH
Tablet
Azithromycin USP 250mg, 500mg
Suspension
Azithromycin USP 30ml
Anti-cancer ELOXATIN
Injection
Oxaliplatin 100mg, 50mg
TAXOTERE
Injection
Docetaxel 20mg, 80mg
Anti-diabetic AMARYL
Tablet
Glimepiride BP 1mg, 2mg, 3mg, 4mg
AMARYL M
Tablet
Glimepiride 1 mg, 2 mg + metphormin hydrocholoride 500mg
APIDRA
Injection
Insulin Glulisine
APIDRA
SOLOSTAR
Injection
Insulin Glulisine
LANTUS
Injection
Insulin Glargine
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Anti-diabetic LANTUS
SoloStar
Injection
Insulin
TOUJEO
SoloStar
Injection
Insulin Glargine
CNS EPILIM
Tablet
Sodium valproate BP 133.2 mg + Valproic acid 58 mg, Sodium
valproate 199.8 mg + Valproic acid 87 mg, Sodium valproate 333 mg
+ Valproic acid 145 mg
STEMETIL
Tablet
Prochlorperazine maleate BP 5mg
CVD LASIX
Injection
Furesemide BP
Tablet
Furesemide BP 40mg
Derma PEVISONE
Cream
Econazole Nitrate 1% + BP Triamcinolone Acetonide 0.1% BP
Gastro ENTEROGER-
MINA
Suspension
Bacillus Clausii
Pain Management PROFENID 2
Injection
Ketoprofen BP
PROFENID
Gel
Ketoprofen BP 2.5%
PROFENID-CR
Capsule
Ketoprofen BP 100mg, 200mg
PROFENID-E
Tablet
Ketoprofen BP 50mg, 100mg
Vaccine VAXIGRIP TETRA Injection SH
Influenza Vaccine (Split-virion, Inactivated)
Injection NH
Influenza Vaccine (Split-virion, Inactivated)
ABOUT US
24 | About Us | Annual Report 2023-24
At Beximco Pharma, we strive to do what matters most to thepatients:
providing high quality, contemporary treatment options and make
them affordable.
ABOUT US
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ABOUT US
Annual Report 2023-24 | About Us | 25
ma
Beximco Pharm
Synovia Pharma
Nuvista Pharma
0
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
30
20
11
11
1
New Products
The Company maintained its strategic focus on brand-building initiatives and expanding product portfolio through new product
launches. During the year, Beximco Pharma introduced 30 new generics in 42 presentations to the domestic market, including 12
products launched for the first time in Bangladesh. The subsidiary, Nuvista Pharma, contributed significantly by launching 20 products
in 25 different strengths and forms, while Synovia Pharma, the other subsidiary, introduced 11 products in 21 presentations in the
domestic market.
Number of New Products
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Europe
Asia
South America
North America
CIS Central Asia
Africa
Australia
New Zealand
Middle East
Central America
& Caribbean Islands
South Asia
Global Footprint
Beximco Pharma has presence in over 60 countries, consistently expanding its footprint through strategic partnerships and increased
product registrations. In the fiscal year 2023-24, the Company completed 37 new registrations for 31 products across 11 countries.
Key milestones include U.S. FDA approvals for Hydroxyzine Pamoate capsules (an antihistamine) and Carbidopa tablets (for Parkinson’s
disease), raising the total FDA-approved products to 18. Additionally, Australia’s Therapeutic Goods Administration (TGA) approved
two products- Mometasone nasal spray (a corticosteroid) and Hyoscine Butylbromide tablets (an antispasmodic). Significant product
launches during the year include Flecainide and Nebivolol tablets in the US and Ketorolac tablets in Canada markets.
The Company’s consolidated exports reached BDT 2,958.4 million, achieving a 7.1% growth. Metered Dose Inhalers contributed 30%
of the export revenue, with increasing demand for Ophthalmic and Nasal Spray products further driving growth.
Beximco Pharma remains focused on expanding into new markets with specialized and technology driven products to strengthen its
global footprint and drive sustainable long-term growth.
28 | About Us | Annual Report 2023-24
ABOUT US
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Export Destinations
Afghanistan
Azerbaijan
Belarus
Georgia
Hong Kong
Indonesia
Kazakhstan
Malaysia
Moldova
Mongolia
Philippines
Singapore
Taiwan
Thailand
Timor-Leste
Uzbekistan
Asia Pacific + CIS
Africa
Botswana
Egypt
Ethiopia
Ghana
Ivory Cost
Kenya
Lesotho
Libya
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Somalia
South Africa
Tanzania
Zimbabwe
Bhutan
Cambodia
Maldives
Myanmar
Nepal
Sri Lanka
Vietnam
South Asia
Middle East
Iraq
Jordan
Oman
United Arab Emirates
Yemen
Europe
Italy
Kosovo
Netherlands
Turkey
United Kingdom
Canada
United States
North America
Australasia
Australia
Fiji
Latin &
Central America
Bolivia
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Guyana
Honduras
Jamaica
Mexico
Netherlands Antilles
Panama
Paraguay
Peru
Suriname
Annual Report 2023-24 | About Us | 29
ABOUT US
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Metered Dose Inhaler
Dry Powder Inhaler
Learning and Development Center
Sterile Formulations and
Ophthalmics
Intravenous Fluids
Oral Solid Dosage (Track-II)
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Oral Solid Dosage, Liquid
Semi Solid (Track I)
Insulin, Sterile Formulations and
Research and Development Center
API Unit- 1 and Unit- 2
Warehouse Complex
Powerplant
The Company’s main manufacturing site in Tongi, Gazipur, spans 23 acres and houses state-of-the-art production units for various
pharmaceutical forms, including oral solids, metered dose inhalers, injectables, insulin, and more. Equipped with advanced machinery
sourced from reputed suppliers in Germany, the USA, and other countries, the facility ensures GMP compliant warehouse, dedicated
infrastructure for electricity generation, water purification, effluent treatment, and steam generation.
Manufacturing Capabilities
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Track II:
Oral Solid Dosage Facility
The multi-story Oral Solid Dosage manufacturing facility, spanning 65,000 square feet, has been approved by global regulatory
authorities including the U.S. FDA, TGA Australia and EU. The facility specializes in producing tablets and hard gelatin capsules. Export
to the US market began in 2016 with products from this unit. Equipped with advanced European technology and a comprehensive
Building Management System (BMS), the facility ensures compliance with global serialization standards such as the US DSCSA and
EUFMD, utilizing a Track & Trace system. With an annual production capacity of 3 billion tablets and 400 million capsules, it supports
our commitment to quality and global reach.
This unit spans 49,854 square meters, including 26,468 square meters of three-story production space, dedicated to manufacturing
a diverse range of pharmaceutical products such as Tablets, Capsules, Sachet Powder, Dry Syrup, Oral Soluble Film, Oral Liquid,
Suspensions, Medicated Shampoo, Cream & Ointments, and Suppositories. The facility, equipped with advanced, predominantly
European machinery, employs a Buliding Management System (BMS) with SCADA to regulate cleanroom conditions and is designed
to meet regulatory standards.
Key features include 85 Air Handling Units (AHU), 9 Makeup Air Units (MAU), 19 Fan Coil Units (FCU) with HEPA filters (99.997%
efficiency), and a water treatment facility with a 25,000-liter/hour reverse osmosis system. It houses a state-of-the-art quality control
and stability laboratory, quality assurance workstations, engineering services, and additional amenities like a cafeteria, prayer room,
and laundry facilities, ensuring a fully integrated, self-sufficient pharmaceutical production environment.
This facility is capable of producing 9.2 billion tablets and capsules, 9.5 million dry syrup, 5.4 million powder sachet, 200 million
liquid bottles, 30 million creams and ointments, 25 million suppositories and 7.6 million liquid sachets.
Track I:
Oral Solid Dosage, Liquid and Semi-solid Facility
Production Facilities
Ophthalmics, Intravenous Fluids, Nasal Spray and Nebulizer Solution Facility
The Company operates advanced production facilities specializing in ophthalmics, nasal sprays, intravenous fluids, insulin, non-
steroidal respiratory medications, and various injectables, including ampoules, pre-filled syringes, and lyophilized products. Its
ophthalmic facility, exporting to regulated markets, has an annual capacity of 4 million units. Other production capacities include 10
million units of intravenous fluids, 3 million units of insulin, 4.32 million ampoules, 3.6 million pre-filled syringes/lyophilized products,
and 0.65 million units of nasal spray annually.
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Inhaler Facility (MDI and DPI)
Our Inhaler facility produces eco-friendly HFA-based Metered
Dose Inhalers (MDI), Dry Powder Inhalers (DPI), and multi-dose
DPI (mDPI) using cutting-edge European technology sourced
from Switzerland, Germany, Italy, and the UK, ensuring the
highest quality and safety standards. Operational since 2006,
the facility has an existing annual capacity of 20 million inhaler
cans and 200 million DPI capsules.
To meet growing demand, a new unit nearing completion will add
an additional capacity of 9 million units, significantly enhancing
our production capabilities and reinforcing our commitment to
providing sustainable, high-quality respiratory solutions.
APIs Manufacturing Facility
Beximco Pharma has two multi-purpose API manufacturing
facilities. These units are capable of manufacturing a number of
small volume high value patented APIs.
Liquid Nitrogen Plant
The Company has a Liquefied Nitrogen plant with capacity of
1.75 million litres of gas for internal use and external sales.
34 | About Us | Annual Report 2023-24
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Energy, Utility, and Other Infrastructure
Energy and Utility
Beximco Pharma is supported by robust energy and utility
infrastructure to ensure seamless operations. The Company
operates a 12.5 MW captive power plant synchronized with
10.6 MW government power, ensuring an uninterrupted
power supply across all units. Steam requirements are met
by 10 boilers with a combined capacity of 22.6 tons per hour,
including five exhaust boilers utilizing generator exhaust gas for
an additional capacity of 6 tons.
Water usage stands at 300 m³ per hour, supplied by three
borewell pumps. Chilled water required for manufacturing
processes and the HVAC system is provided by 21 chillers with
a combined capacity of 5,889 TR (tons of refrigeration). For
environmental sustainability, the Company operates an Effluent
Treatment Plant (ETP) with a 605 m³ capacity and an Incinerator
capable of processing 250 kg of waste daily. A dedicated
Plant Engineering Services (PES) Department, comprising 200
engineering professionals, ensures the uninterrupted supply
of power, water, air, and steam while maintaining operational
efficiency through timely maintenance.
Warehouse Facilities
Beximco Pharma’s facilities include a 327,000 sq ft GMP-
compliant warehousing complex managed by the Warehouse
Department. Key functions include goods receiving, quality
inspections, shelf-life monitoring, storage, and inventory
management. The warehouse is equipped with advanced HVAC
and cooling systems to maintain precise temperature ranges
(-15 to -25°C, 2-8°C, 8-15°C, and 15-25°C) as required by
different products. A computerized system continuously monitors
and controls temperature and humidity, while temperature-
controlled vehicles ensure safe transport of sensitive materials
and products.
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36 | About Us | Annual Report 2023-24
ABOUT US
ABOUT US
Annual Report 2023-24 | About Us | 37
Research and Development
Beximco Pharma’s Research and Development (R&D) facility, spanning 20,000 sq. ft., is a cornerstone of
the Company’s value chain driving innovation and growth. It houses three sub-departments: Formulation
Research Development (FRD), Analytical Development Lab (ADL), and Development Quality Assurance
(DQA). A dedicated team of 106 scientists leverages advanced equipment to develop differentiated
products, including metered dose inhalers, dry powder inhalers, nasal sprays, dispersible tablets, prefilled
syringes, lyophilized injectables,and sterile ophthalmics.
The facility features state-of-the-art lab-scale equipment for formulation development, such as high shear
mixer granulators, Fluid Bed Dryers, and bi-layer compression machines. Its analytical capabilities are
supported by cutting-edge instruments like HPLC, UPLC, GC-MS, and Laser diffraction-based particle size
analyzers. These resources empower the R&D team to pioneer complex formulations, ensure regulatory
compliance, and maintain high-quality standards for both domestic and international markets.
Beximco Pharma has also established partnerships with leading contract research organizations and
institutes for bioequivalence and in-vitro studies. The team’s ability to innovate was exemplified during
the COVID-19 crisis, with groundbreaking launches such as the world’s first generic remdesivir and the
Bexovid tablet, earning the CPhI Pharma Award 2020 for “Innovation in Response to COVID-19.”
Annual Report 2023-24 | About Us | 37
ABOUT US
ABOUT US
38 | About Us | Annual Report 2023-24
Our growing presence in overseas markets, combined with our reputation
as a world class manufacturer, drives us to aspire to even greater heights
First Bangladeshi
pharma company
to export medicine
to U.S.A
ABOUT US
Annual Report 2023-24 | About Us | 39
Global Accreditations
• U.S. FDA
• Therapeutic Goods Administration (TGA), Australia
• Gulf Central Committee (GCC)
• World Health Organization (WHO)
• ANVISA (Brazil)
• Health Canada
Annual Report 2023-24 | About Us | 39
ABOUT US
ABOUT US
40 | About Us | Annual Report 2023-24
PERFORMANCE
HIGHLIGHTS
ABOUT US
Annual Report 2023-24 | About Us | 41
Performance Highlights
Operational
42
Financial
44
Value Added Statement
48
Key Financial Indicators
49
Accolades and Awards
52
Annual Report 2023-24 | Performance Highlights | 41
PERFORMANCE
HIGHLIGHTS
PERFORMANCE
HIGHLIGHTS
42 | Performance Highlights | Annual Report 2023-24
PERFORMANCE
HIGHLIGHTS
42 | Performance Highlights | Annual Report 2023-24
roduct & Market
Pr
mestic Market
Dom
eximco Pharma launched
• Be
30 products (42 dosage forms and strength)
• Nuvista Pharma launched20 products (25 dosage forms and strength)
• Synovia Pharma launched11 products (21 dosage forms and strength)
International Market
• Completed 37 new registrations of31 products across11 countries
• Received 2 product approvals from the U.S. FDA
- Hydroxyzine Pamoate capsule (an antihistamine drug), and Carbidopa tablet
(a medication for the treatment of Parkinson's disease)
- Mometasone nasal spray (a corticosteroid), and Hyoscine Butylbromide tablet
(an antispasmodic drug)
• Launched Flecainide tablets (50 mg, 100 mg, and 150 mg) and Nebivolol tablets
(2.5 mg, 5 mg, 10 mg, and 20 mg) in the US market
• Launched Ketorolac 10 mg tablet - the 3rd oral solid dose (OSD) product in the Canadian market
• Obtained approvals from the TGA, Australia for 2 products
wards & Accreditation
Aw
Won Bangladesh's
• W
National Export Trophy (Gold) for a record ninth time
Won Bronze in the
• W
14th ICMAB’s Best Corporate Award in Pharmaceuticals category
• Won the Green Factory Award from the Ministry of Labor & Employment of Bangladesh
• Beximco Pharma, Nuvista and Synovia Pharma teams won Gold Medals at the International
QCC Competition 2024 held in Sri Lanka
• Nuvista Pharma won National Productivity and Quality Excellence Award-
2022 from the Ministry of Industries, GOB.
Operational
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 43
Operational
Operational
O
Launched
•
3 new products in the domestic market
Completed
•
18 new product registrations across5 countries
Commenced export to
•
3 new countries- Cuba, Malta and Qatar
Financial (Consolidated)
Financial (Consolidated)
F
irst-quarter ended 31 September 2024
Fi
• Net revenue increased 5.0% to Taka 11,713.9m (2022-23: Taka 11,159.4m)
• Profit after tax increased 7.9% to Taka 1,691.9m (2022-23: Taka 1,567.4m)
• EPS for the quarter amounted to Taka 3.77 (2022-23: Taka 3.48)
Post Period
PERFORMANCE
HIGHLIGHTS
44 | Performance Highlights | Annual Report 2023-24
PERFORMANCE
HIGHLIGHTS
44 | Performance Highlights | Annual Report 2023-24
Financials: 2023-24
Beximco Pharma and its Subsidiaries (Consolidated)
2022-23
2023-24
Net
revenue
Domestic revenue
Export
Gross profit
Profit before tax
Profit after tax
EPS
NAV/Share
BDT 44,391.6m 13.1%
BDT 41,433.2m 13.5%
BDT 2,958.4m 7.1%
BDT 19,634.0m 13.5%
BDT 5,866.8m 29.7%
BDT 7,525.5m 24.0%
BDT 13.07 26.4%
BDT 107.48 9.8%
BDT 39,266.7m
BDT 36,503.5m
BDT 2,763.2m
BDT 17,305.0m
BDT 4,524.5m
BDT 6,068.8m
BDT 10.34
BDT 97.91
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 45
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 45
Beximco Pharma (Stand-alone)
2022-23
2023-24
EPS
NAV/Share
40% Cash Dividend for 2023-24
(i.e. Taka 4.0 per Share of Taka 10 each)
35% Cash Dividend for 2022-23
(i.e. Taka 3.5 per Share of Taka 10 each)
11.8% BDT 36,899.0m
12.3% BDT 33,962.4m
6.7% BDT 2,936.6m
11.9% BDT 16,252.9m
21.0% BDT 7,136.7m
22.3% BDT 5,610.5m
22.3% BDT 12.58
9.3% BDT 106.23
BDT 32,991.9m
BDT 2,753.0m
BDT 14,520.4m
BDT 5,897.3m
BDT 4,588.0m
BDT 10.28
BDT 97.15
BDT 30,238.9m
Net
revenue
Domestic revenue
Export
Gross profit
Profit before tax
Profit after tax
PERFORMANCE
HIGHLIGHTS
46 | Performance Highlights | Annual Report 2023-24
PERFORMANCE
HIGHLIGHTS
46 | Performance Highlights | Annual Report 2023-24
Nuvista Pharma
BDT 3,478.2m 14.7%
BDT 3,456.5m 14.3%
BDT 21.7m 110.7%
BDT 1,684.4m 13.4%
BDT 349.3m 32.2%
BDT 443.6m 13.4%
BDT 29.72 32.2%
BDT 155.91 19.8%
BDT 3,033.7m
BDT 3,023.4m
BDT 10.3m
BDT 1,485.0m
BDT 264.3m
BDT 391.3m
BDT 22.49
BDT 130.19
50% Cash Dividend for 2023-24
(i.e. Taka 5 per Share of Taka 10 each)
40% Cash Dividend for 2022-23
(i.e. Taka 4 per Share of Taka 10 each)
2022-23
2023-24
Net
revenue
Domestic revenue
Export
Gross profit
Profit before tax
Profit after tax
EPS
NAV/Share
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 47
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 47
Synovia Pharma
Net
revenue
10% Cash Dividend for 2023-24
(i.e. Taka 10 per Share of Taka 100 each)
10% Cash Dividend for 2022-23
(i.e. Taka 10 per Share of Taka 100 each)
Gross profit
BDT 4,338.0m
22.9%
BDT 1,648.8m
31.1%
BDT 95.3m
217.2%
BDT 57.1m
130.2%
BDT 15.89
130.2%
BDT 626.89
0.9%
Profit after tax
EPS
NAV/Share
Profit before tax
BDT 3,530.0m
BDT 1,258.1m
BDT (81.3m)
BDT (189.3m)
BDT (52.65)
BDT 621.00
2022-23
2023-24
PERFORMANCE
HIGHLIGHTS
48 | Performance Highlights | Annual Report 2023-24
PERFORMANCE
HIGHLIGHTS
48 | Performance Highlights | Annual Report 2023-24
Salaries and Benefits to
Employees
Duties & Taxes
to Govt. Exchequer
Dividend to
Shareholders
Interest to
lenders
Retained by
the Company
38.6%
5.4%
38.1%
4.4%
28.1%
27.8%
6.9%
7.1%
22.7%
2023- 24
2022- 23
21.0%
2023-24
2022-23
Sales & Other Income
Bought-in-Materials & Services
Total
Total
Salaries and Benefits to Employees
Interest to Lenders
Duties & Taxes to Govt
Ta
T
. Exchequer
Dividend to Shareholders
Retained by the Company
S
S
B
T
I
D
D
R
T
51,952
46,053
(25,484)
(22,186)
26,468
23,867
7,355
6,705
1,160
1,286
10,072
9,215
1,879
1,645
6,002
5,016
26,468
23,867
Applications:
Value Addition:
Value Added Statement
Applications of Value Addition
Amount in Million Taka
48 | Performance Highlights | Annual Report 2023-24
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 49
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 49
Profit Before Tax
3,946m
9
2018
9
8-19
8
0
2019-20
9
4,653m
2020-21
0
6,378m
2021-22
1
6,687m
2022-23
2
6,069m
2023-24
3
7,526m
Profit After Tax
2018-19
8
3,040m
2019-20
9
3,544m
2020-21
0
5,166m
2021-22
1
4,999m
2022-23
2
4,524m
2023-24
3
5,867m
2023-24
3
44,392m
2018-19
8
22,817m
2019-20
9
25,612m
2020-21
0
29,494m
2021-22
1
34,669m
2022-23
2
39,267m
Net Revenue
* Includes 10% Stock Dividend
Dividend (%)
2018-19
8
15%
2019-20*
2019-20*
9
25%
1
2020-21
35%
2021-22
1
35%
2022-23
2
35%
2023-24
3
40%
NAV Per Share (Taka)
2018-19
8
72.96
2019-20
9
80.12
2020-21
0
83.01
2021-22
1
91.01
2022-23
2
97.91
2023-24
3
107.48
Earning Per Share (Taka)
2023-24
3
13.07
9
2018-19
8
7.48
0
2019-20
9
7.88
2020-21
0
11.49
2
2021-22
1
11.48
3
2022-23
2
10.34
Key Financial Indicators (Consolidated)
Annual Report 2023-24 | Performance Highlights | 49
PERFORMANCE
HIGHLIGHTS
50 | Performance Highlights | Annual Report 2023-24
The combined force of our product development, manufacturing skills
and also our marketing expertise will yield definitive results not just for
investors but also for patients in need.
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 51
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 51
Entity Rating
Outlook
Stable
Long Term
Short Term
AAA
ST-1
Date of Rating: December 13, 2023
Credit Rating Information & Services Limited (CRISL)
Beximco Pharma
Valid up to: December 12, 2024
Entity Rating
Outlook
Stable
Long Term
Short Term
AA
ST-2
Date of Rating: December 4, 2024
Credit Rating Information & Services Limited (CRISL)
Nuvista Pharma
Valid up to: December 3, 2025
Entity Rating
Outlook
Stable
Long Term
Short Term
A
ST-3
Date of Rating: May 20, 2024
Credit Rating Information & Services Limited (CRISL)
Synovia Pharma
Valid up to: May 19, 2025
Credit Rating
PERFORMANCE
HIGHLIGHTS
52 | Performance Highlights | Annual Report 2023-24
CE
TS
ANC
GHT
MA
LIG
OR
GHL
RFO
HIG
PER
P
E
S
NC
HTS
AN
GH
RM
HL
FO
IG
ER
H
P
2 | Performance Highlights | Annual Report 2023 24
52 | Performance Highlights | Annual Report 2023-24
52 | Performance Highlights | Annual Report 2023-24
g
g
p
Beximco Pharma recognized as o
Beximco Pharma recognized as o
Beximco Pharma recognized as one of the
one of the
one of the
top-performing companies in the
f
i
i
i
th
top-performing companies in the
p p
g
p
pharmaceutical
h
ti
l
pharmaceutical
p
sector at the 14
sector at the 14
sector at the 14th
th
t ICMAB
ICMAB
ICMAB Best C
Best C
Best Corporate Award
Corporate Award
Corporate Award
p
Accolades and Awards
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 53
PERFORMANCE
HIGHLIGHTS
s | 5
High
3
ght
hlig
ce
an
ts
e
53
h
ma
form
rfo
erf
| P
|
-24
3-
23
20
2
port
ep
Re
al
a
nnua
An
A
3
ance
2023
ligh
Per
l Re
g
p
3
20
Annual Report 2023-24 | Performance Highlights | 53
WI
N
NE
R
National Export Trophy (Gold)
National Export Trophy (Gold)
National Export Trophy (
y (Gold)
2021-22
2021-22
for a record 9
fo
for a record 9
or a record 9th
th
th time
tim
time
me
me
PERFORMANCE
HIGHLIGHTS
54 | Performance Highlights | Annual Report 2023-24
PERFORMANCE
HIG
rformance Highlights | Annual Report 2023-24
ORMANCE
HIGHLIGHTS
P
-24
nual Report
54 | Pe
ance Highlight
ORMANCE
HIGHLIGHTS
P
3-24
nual Report 2
e
ance Highlights
Won the Green Factory Award from the Ministry of
Labor & Employment of Bangladesh
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 55
PERFORMANCE
HIGHLIGHTS
Annual Report 2023-24 | Performance Highlights | 55
ICQCC-2023
ICQCC-2024
Five teams from Beximco Pharma, Nuvista Pharma, and Synovia Pharma won Gold Medals at the International QCC competition
2024 held in Colombo, Sri Lanka.
Beximco Pharma team received the Gold award at the International Quality Circle Competition 2023 held in Beijing, China.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
56 | Environmental, Social and Governance | Annual Report 2023-24
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
,
GO
C
,
56 | Environmental, Social and Governance | Annual Report 2023-24
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 57
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
,
GO
C
,
Annual Report 2023-24 | Environmental, Social and Governance | 57
ENVIRONMENTAL, SOCIAL
and GOVERNANCE (ESG)
Environmental
58
Social
66
Governance
82
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
58 | Environmental, Social and Governance | Annual Report 2023-24
Environmental
Beximco Pharma is committed to environmental stewardship, integrating sustainability into every aspect of its operations. With a
focus on minimizing ecological impact, we employ advanced, environmentally compliant technologies and uphold stringent global
Environmental, Health, and Safety (EHS) standards. Our initiatives emphasize waste management, eco-friendly practices, and rigorous
safety protocols to ensure a safe workplace while safeguarding surrounding communities. Guided by our vision for sustainable
growth, we continually strive to reduce our environmental footprint, conserve natural resources, and contribute to a healthier, more
sustainable future for all.
Environment, Health and Safety
EHS Governance
At Beximco Pharma, environmental, health, and safety are integral to our organizational priorities. To ensure adherence to these
standards and foster a culture of EHS excellence, we have established dedicated committees that align with our commitment to
employee well-being, sustainability, and workplace integrity.
Environmental, Health, and Safety (EHS) Committee
Our EHS Committee comprises senior-level management who oversee all environmental, health, and safety matters. Their
responsibilities include ensuring compliance with established EHS standards, assessing operations, identifying areas for improvement,
and implementing corrective actions. This committee meets regularly to maintain alignment with organizational goals and evolving
industry standards. The present committee comprises the following members:
Md. Zakir Hossain
Senior Manager
Shamim Momtaz
Director, Manufacturing
Mohd. Tahir Siddique
Director, Quality
Mahfuzur Rahman
Executive Director, API Production
Brig. General
Md. Mehboobul Haque (Retd.)
Executive Director,
Factory Administration
Subodh Chandra Das
Executive Director
Research and Development
Yousuf Hossain
General Manager
Plant Engineering Services
Mohammad Shakhawat Hossain
Deputy General Manager
Plant Engineering Services
Mohammad Ali
Deputy General Manager
Factory Project Management
Saima Sultana
Senior Manager, Training
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 59
Safety Committee
To further reinforce our commitment to workplace safety, the Safety Committee involves both management and employee
representatives. This inclusive approach ensures an open platform for workers to report safety concerns directly. Additionally, the
Safety Committee spearheads initiatives to promote safety awareness and implements strategies to enhance health and safety
practices across all facilities.
Sexual Harassment Complaints Committee
Beximco Pharma also emphasizes the importance of workplace integrity and inclusivity through its Sexual Harassment Complaints
Committee. This high-level committee is tasked with creating awareness, enhancing workplace culture, and addressing issues
effectively. Meeting as needed, the committee reviews existing policies, identifies areas for improvement, and recommends corrective
measures to foster a positive and respectful work environment.
Key Elements of EHS Policy
Training for EHS
Implementation
Ensuring a Safe Working
Environment
Effective EHS Risk
Management
Environmental Impact
Reduction
Maintaining and Enhancing
EHS Conditions
Encouraging Personal
Accountability
EHS Compliance
EHS Policy
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
60 | Environmental, Social and Governance | Annual Report 2023-24
Governing Laws and Regulation
Our EHS operation is governed by the following Acts, Rules and Standards:
Environmental Sustainability Measures
Eco-friendly Waste Management
At Beximco Pharma, we are committed to managing waste responsibly, ensuring compliance with regulations and protecting the
environment. Solid waste from our manufacturing operations is treated using advanced technologies such as incineration plants,
HEPA units, dust control units, and scrubber systems. This ensures zero hazardous discharge into the environment, safeguarding
surrounding ecosystems.
Our incineration plant processes up to 250 kg of waste per hour and operates at high temperatures (800°C in the primary chamber
and 1100°C–1200°C in the secondary chamber) to effectively burn waste. Emissions are purified using scrubbers and HEPA filters,
keeping air quality well within standards set by the Department of Environment (DoE), Bangladesh. Additionally, we regularly monitor
air emissions from our incinerators, boilers, and generators.
For liquid waste, which includes water from equipment cleaning, laboratory reagents, and cooling towers, we use a state-of-the-art
Membrane Bioreactor (MBR) treatment system with a capacity of 605 m³ per day. Wastewater undergoes chemical and biological
treatments, including the use of microorganisms to break down contaminants. Advanced filtration technology with a pore size of 0.2
microns ensures that treated water is safe for discharge.
• 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
Environmental Conservation
and Sustainability
Safety and Hazard Control
Occupational Health,
Safety and Labor Rights
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 61
Treated Water Quality
Parameter
Standard Specification*
Actual Result
Appearance
Colorless to Straw colour liquid. **
A Colorless liquid
pH
6.0 to 9.0
7.22
Chemical Oxygen Demand (COD)
NMT 200 ppm
48 ppm
Temperature
NMT 40 oC
26.7oC
Total Dissolved Solids
NMT 2100 ppm
1112 ppm
Total Solids
NMT 2250 ppm**
1186 ppm
Total Suspended Solids
NMT 150 ppm**
74 ppm
Bio-Chemical Oxygen Demand (BOD, 5 days at 20 oC)
NMT 30 ppm
10 ppm
Dissolved Oxygen (DO)
4.5 to 8.0 ppm
5.7 ppm
Chloride
NMT 600 ppm
116.82 ppm
Sulphate
NMT 200 ppm**
60 ppm
Total Alkalinity
NMT 300 ppm**
116 ppm
Arsenic
NMT 0.2 ppm
0.05 ppm
Phosphorus
NMT 8 ppm
0.02 ppm
Zinc
NMT 5 ppm
0.05 ppm
Manganese
NMT 2 ppm
0.05 ppm
Copper
NMT 0.5 ppm
0.2 ppm
*As per Environment Laws of Bangladesh
** Internal Standard
Ambient Air Emission Analysis Report
Ambient Air Emission Analysis Result-2024
Parameter
CO2
(mg/m3)
NO2
(µg/m3)
NO
(µg/m3)
SO2
(µg/m3)
TVOC
(µg/m3)
PM10
(mg/m3)
SPM
(mg/m3)
Temperature
(0C)
Remarks
Standard (Max Limit)*
20
80
N/A
80
N/A
150
N/A
-
Result in Factory Area
0.021
0.02
0.027
0.0008
10
43
80
32.2
* Air Pollution (Control) Rules, 2022 Standard (Max. Limit)
Noise and Odor Management
Beximco Pharma also addresses the noise and odor concerns effectively. Personnel within the plant are equipped with appropriate
Personal Protective Equipment (PPE). Vibration issues are minimized by positioning reactors at a safe distance from boundary areas.
Odor is controlled through regular disinfection of the premises and the use of scrubbers installed in the main gas emission lines. Noise
levels around the factory are maintained at approximately 62 dBa, well below the standard limit of 75 dBa, reflecting our commitment
to workplace safety and environmental standards.
Electrical Safety Measures
We ensure electrical safety through robust earthing and lightning protection systems. All machinery is securely earthed to minimize
electric shock risks, and high-rise structures are equipped with lightning arresters to safely divert lightning energy into the ground.
Regular inspections of earthing and lightning protection systems maintain their reliability, while certified engineers oversee electrical
wiring in compliance with standards. Advanced techniques like thermal imaging and megger testing further ensure safety and system
integrity.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
62 | Environmental, Social and Governance | Annual Report 2023-24
Green Initiatives
At Beximco Pharma, we are dedicated to fostering environmental sustainability through meaningful initiatives. A key highlight of our
efforts is the annual tree-planting event, aimed at creating carbon sink zones in and around our facilities. On World Environment Day
2024, we planted Terminalia mantaly (locally known as Nakachura) on our factory premises. The day featured a range of activities to
raise environmental awareness and includes:
• A discussion session highlighting pressing environmental issues
• Display of awareness building banners across the factory premises
• Employee rally to engage the workforce and reinforce the importance of environmental action
• Community outreach broadcasting the event through local channels
Our subsidiaries Synovia Pharma and Nuvista Pharma also observed the day and planted trees on and around the factory premises.
The slogan for this year’s event was, “Our Land, Our Future. We are #GenerationRestoration.”
In addition, Beximco Pharma organized an online quiz competition on topics like climate change, conservation, and sustainable
practices. This initiative fostered a deeper understanding of environmental issues among employees, with winners receiving
recognition for their engagement and knowledge.
Tree Plantation at Beximco Pharma factory premise
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 63
Other Eco-Friendly actions
Recognition
Beximco Pharma was honored with the Green Factory Award in the pharmaceutical category by the Ministry of Labor & Employment
of Bangladesh. This recognition was presented on National Occupational Health and Safety Day, April 28, 2024, underscoring our
commitment to environmental sustainability and responsible practices.
Protection of Health and Industrial Hygiene
Fire Safety Measures
We have robust Fire Safety measures to ensure comprehensive protection, preparedness, and training to safeguard our facility and
workforce during emergencies. The fire safety plans and measures include:
• Automated fire hydrant system with two reservoirs holding 230,000 liters and 300,000 liters of water to handle fire emergencies
across the entire facility.
• Comprehensive coverage of all buildings, including production, warehouse, and laboratory, by fire detection and protection systems.
• Utilization of three types of fire detectors: smoke, heat, and multi-detectors for effective fire detection.
• 65.17% of employees received practical training on using fire extinguishers and hydrants.
• Mock fire evacuation drills are conducted biannually in collaboration with Bangladesh Fire Service and Civil Defense. Evacuation
diagrams are posted on each floor for quick workplace evacuation.
• Compulsory training sessions for all factory personnel on operating firefighting equipment and basic first aid procedures.
Awareness building
across the organization
with projects to reduce
paper usage
Rooftop solar panels generating 20 KW of electricity
Economizer in boiler exhaust line for feed water heating; condensate recovery
system for feed water reuse
Harvesting rainwater
Use of sensor-control
water tap and LED bulb
Daylight saving considered in building design
Use of waste ethanol as fuel for incinerator and paint dilution
Gradual replacement
of plastic water bottle
with glass bottle
Introduced electronic
quality management
systems (EQMS) and
electronic document
management systems
(EDMS)
Reuse of treated water
for gardening, cleaning
and washing
Stopping use of one
time plastic cup
Saving Water and Energy
Reduced use of one-time plastic
Reduced use of Paper
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AND GOVERNANCE
64 | Environmental, Social and Governance | Annual Report 2023-24
Fire Safety Awareness Training at head office premises
Fire Safety Drill at factory premises
Health Safety Measures
At Beximco Pharma, we prioritize health and safety by implementing robust guidelines across all operational and manufacturing sites.
Potential chemical and physical exposures are identified and assessed using qualitative and quantitative risk analysis, with significant
risks managed through a combination of elimination, substitution, engineering controls, administrative measures, and the provision
of personal protective equipment (PPE). Environmental, health, and safety (EHS) considerations are integrated into the procurement
process for new equipment, ensuring that all installations comply with Installation Qualification (IQ) and Operation Qualification
(OQ) standards. Safety checkpoints are meticulously verified during these qualification activities, and machines and moving parts
are secured with covers and interlocked sensors to prevent physical injuries. Additionally, we provide PPE wherever necessary and
address factors that may lead to musculoskeletal or ergonomically related disorders, reflecting our commitment to employee health
and well-being.
Celebrating National Occupational Health and Safety Day on April 28 at our factory premises
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 65
No excessive heating areas are present within the factory premises, and all manufacturing areas, including warehouses, are
temperature-controlled to ensure a safe and stable environment. Work permits are issued for non-routine tasks such as hot work,
working at heights, confined space entry, and lifting operations, ensuring safety through hazard identification, risk control measures,
and the use of appropriate personal protective equipment (PPE).
Chemical storage follows compatibility guidelines, with designated storage areas designed to prevent cross-contamination and fire
hazards. Spill kits and secondary containment measures are in place to manage potential spills, and regular mock spill drills are
conducted to raise awareness and preparedness. Eye wash and shower stations are readily available in areas where chemicals are
handled to ensure prompt response to exposure incidents.
To continuously enhance workplace safety, the EHS team conducts annual internal audits across the entire facility.
Health Care for Employees
Pre-employment health check-up is mandatory for all employees of the Company. All factory-based employees in Company’s
payroll receive annual health check-ups. During the year 1705 employees received such check-ups. Additionally, the Company
has contracted physicians specialized in Medicine, Gynecology, Child Health, Nutritionist etc. where all employees and their family
members can consult free of cost. The Company also has agreements with hospitals and clinics adjacent to the factory to ensure
emergency medical treatment. Factory and head office based employees are also covered by medical insurance.
Child Labor
Beximco Pharma strictly complies with all provisions of the Bangladesh Labor Act, including the regulations related to “Adolescent
Employment.” The Company ensures that neither direct nor indirect child labor is used in any part of its operations.
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AND GOVERNANCE
66 | Environmental, Social and Governance | Annual Report 2023-24
Social
Human Resources
Work and Culture
At Beximco Pharma, we firmly believe that people are the cornerstone of our success. Our achievements and continued growth are
built on the dedication, expertise, and unwavering commitment of our workforce. This belief is deeply embedded in our strategy,
where empowering our employees takes center stage. By creating an environment that nurtures creativity and collaboration, we
enable our people to drive transformation and innovation, consistently delivering excellence.
During FY 2023-24, we continued to cultivate a workplace culture that goes beyond professional relationships, fostering a strong
sense of community. Our employees take immense pride in their contributions, their teams, and the Company as a whole.
Team Building Program 2023 - Adventure 2.0
The workplace thrives on mutual respect, companionship, and a shared vision for success. Employees celebrate each other’s
achievements and collaborate seamlessly across functions, exemplifying the true essence of teamwork. This unique, people-focused
culture is what truly distinguishes Beximco Pharma from others in the industry.
Diversity, Equity, and Inclusion
As of June 30, 2024, our workforce has grown to 6,021 that includes more than 1,500 multidisciplinary professionals. This
diverse team brings together expertise from a wide range of fields, including pharmacy, chemistry, medicine, engineering, biology,
microbiology, law, business administration, and research. Our commitment to diversity extends across all dimensions, including
education, experience, gender, and age, ensuring a rich, inclusive, and dynamic workplace environment that fosters innovation and
collaboration.
Gender diversity remains a cornerstone of our inclusive efforts. Female employees currently hold 225 full-time permanent positions
across various levels of the organization. To further advance gender equity, we continue to prioritize female candidates when
qualifications are equal, striving to create a workplace that values and celebrates the contributions of all its members.
Talent Acquisition and Retention
Attracting, retaining, and nurturing top talent is central to our Human Resources strategy. In FY 2023-24, we welcomed 820 new team
members into permanent positions, resulting in a net addition of 223 skilled professionals. This growth is a testament to our ongoing
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 67
efforts to align talent acquisition with business expansion while ensuring that our workforce remains equipped to meet evolving
industry demands.
Our Human Resources policy is designed to provide competitive remuneration, comprehensive end-of-service benefits, and
structured career progression opportunities. We are deeply committed to fostering a fair, transparent, and inclusive recruitment
process, evaluating candidates solely on merit. Discrimination of any kind, whether based on gender, religion, ethnicity, or nationality,
has no place at Beximco Pharma. This steadfast dedication to equity ensures that we attract the best talent and build a workforce
that reflects the values of our organization.
As we set our sights on the future, Beximco Pharma remains dedicated to building on the foundation of our people first culture. We
will continue to invest in initiatives that attract diverse talent, foster inclusivity, and promote employee development. By doing so, we
ensure that our workforce remains not just our greatest asset but also the driving force behind our mission to achieve sustainable
growth and success.
Learning and Development
At Beximco Pharma, we recognize that in today’s rapidly evolving business landscape, marked by intense competition, digital
advancements, and ever-changing rules and standards, continuous learning is not just important but essential. To address these
challenges, our Learning and Development team is dedicated to empowering employees with the tools and resources needed to
excel in a dynamic environment. Through need-based training programs, we enhance individual and organizational capabilities while
Human Resource Strength
4755
5104
5377
5706
6021
2019-20
2020-21
2021-22
2022-23
2023-24
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
68 | Environmental, Social and Governance | Annual Report 2023-24
aligning learning initiatives with our strategic goals. By fostering an inclusive culture of growth and continuous improvement, we
prepare our workforce to navigate complexities, embrace innovation, and sustain excellence. Training at Beximco Pharma is not just
about building skills but creating a community of lifelong learners equipped to drive success and remain resilient in a fast-changing
world.
Training Programs
Soft Skill Trainings
During the reporting period, our Learning and Development team organized a series of soft skills training programs designed to
enhance employee capabilities and create a more collaborative and productive workplace. Key programs included Active Listening,
which focused on improving employees’ ability to understand and connect with colleagues for effective communication, and
Conflict Management, which provided strategies for resolving disputes constructively to maintain workplace harmony. The Effective
Communication Skills training emphasized clarity and adaptability in messaging, while the Effective Meetings Management program
equipped participants with techniques to plan and conduct productive discussions. The Storytelling program, facilitated by an
external trainer, taught employees to use narratives as powerful tools for delivering memorable and impactful messages. Stress
Management sessions helped participants recognize stress triggers and adopt coping mechanisms, fostering mental well-being,
and Time Management workshops guided employees on prioritizing tasks and managing their schedules effectively, enhancing
productivity and work-life balance.
Problem-Solving training empowered participants with a structured approach to tackle challenges creatively and proactively. These
initiatives were largely conducted by in-house trainers, reflecting the organization’s focus on developing an internal pool of skilled
trainers. By investing in soft skill training, the Company is fostering professional growth among employees and supporting the
achievement of organizational goals. In total, 10 training sessions were conducted during the year, engaging 196 participants and
delivering 1,176 hours of learning.
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Annual Report 2023-24 | Environmental, Social and Governance | 69
Functional Training
During the reporting period, Beximco Pharma continued its commitment to enhancing employee skills through functional training
programs across various departments of the organization. These sessions, conducted in collaboration with external trainers, featured
high-quality, specialized content delivered through hands-on workshops and interactive discussions, ensuring practical learning and
engagement. During this period, the Company conducted 18 training sessions, engaging 173 participants in a total of 1,557 training
hours.
The programs received positive feedback from participants and resulted in noticeable improvements in job performance. To measure
effectiveness, follow-up evaluations were conducted, providing valuable insights that will guide refinements in our training strategy
for the upcoming year. By aligning these programs with evolving industry trends and technologies, Beximco Pharma continues to
empower its workforce, driving excellence and maintaining a competitive edge in the pharmaceutical sector.
Leadership Training
The Leadership development program serves as a key supervisory training initiative for all entities of Beximco Pharma. This year, a
total of 10 leadership development sessions were conducted, targeting supervisors and managers. The program featured a blend of
internal expertise through the “Coach” training sessions and external insights delivered via the “Leadership Excellence” program,
ensuring a comprehensive approach to developing leadership capabilities across the organization.
E-learning
The e-learning platform demonstrated strong user engagement and effectiveness in fostering learning and development across
Beximco Pharma and its subsidiaries during the reporting period. A significant step in this journey was the introduction of the
Skillsoft online Learning Management System, aimed at enhancing the soft skills of employees and fostering professional growth.
Across the platform, 117 active users were recorded, with 106 accessing content. These users completed 2,061 courses and earned
1,891 badges, reflecting high levels of participation and dedication. A total of 1,619 hours of training was logged, underscoring the
platform’s role in supporting continuous development.
For Beximco Pharma, 64 active users accessed 1,496 courses, earning 1,380 badges, with 1,044 hours of training completed. Synovia
Pharma recorded 32 active users completing 306 courses, earning 267 badges, and contributing 286 training hours. Nuvista Pharma
saw 24 active users completing 259 courses, earning 244 badges, and logging 287 training hours. These figures demonstrate the
platform’s widespread adoption and its impact on building a skilled workforce.
The introduction of the Skillsoft system, coupled with these outcomes, highlights Beximco Pharma’s commitment to leveraging
innovative tools for employee development, aligning with organizational goals and fostering a culture of learning and excellence.
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AND GOVERNANCE
70 | Environmental, Social and Governance | Annual Report 2023-24
Sales Training
The sales training program reflects our commitment to cultivating a highly skilled and professional sales force capable of meeting
the dynamic demands of the pharmaceutical market. In 2023-24 fiscal year, 912 newly recruited trainees received 40-day training
program from a pool of 1,542 candidates initially selected through a rigorous recruitment process. 668 trainees successfully
completed the program, contributing to a total of 213,760+ learning hours. Upon completion, successful candidates were promptly
deployed to sales roles, ensuring they are ready to deliver results aligned with organizational goals.
Throughout the year, we consistently organize training programs for our sales and marketing teams, focusing on enhancing and
updating their knowledge and skills to ensure performance and adaptability to market dynamics.
Training for Manufacturing Excellence
Apart from training conducted for other functions, Beximco Pharma routinely undertakes training initiatives exclusively designed for
the manufacturing-related employees.
During 2023-24 financial year a total of 3,517 participants, consisting of 1,761 permanent staff, 1,580 contractual staff, and 176
cleaning staff across all departments, received comprehensive training programs. In terms of classroom training, we conducted
341 sessions, comprising 228 planned training events, 52 induction sessions, 47 need-based trainings, 3 guideline trainings, and
11 IQ, OQ, and PQ trainings. Our strong commitment to compliance and operational excellence was further demonstrated through
1,467 SOP training sessions conducted across various departments. Additionally, we delivered 585 Standard Testing Procedure (STP)
training sessions and 738 Protocol training sessions. Besides our experienced and skilled pool of trainers, we engaged external
training specialists and organized 24 training programs involving such resources.
Our dedication to quality and operational excellence was evident in the successful completion of 16 audits by various authorities
across multiple manufacturing units.
Internship and In-Plant Training Program
Beximco Pharma actively supports the development of future professionals through its Internship Program and In-Plant Training
initiatives, bridging the gap between academic learning and practical industry experience.
The Internship Program offers the fresh graduates hands-on exposure to real business situations, helping them acquire practical
skills while allowing the organization to share its work culture and attract potential talent for future roles. During the year, 15 interns
were engaged across 8 departments, completing a total of 8,640 training hours.
The In-Plant Training program is designed for pharmacy and engineering students from private and public universities, providing
them with immersive experience in production and operational environments. In the reporting year, 356 participants received a total
of 28,480 hours of training.
Project Evolution (Quality Control Circles)
Project Evolution is a noteworthy initiative of the Company to cultivate the culture of continuous quality improvement. It has
established Quality Control Circles (QCC), where dedicated team members identify and solve challenges within their respective work
areas . In support of the culture, Beximco Pharma and its subsidiaries participate in national and International national Quality Control
Conventions every year. This year 33 teams from Beximco Pharma and its subsidiaries participated in the National Quality Control
Convention and achieved a remarkable 29 gold medal and 4 silver medals.
Five teams selected through a rigorous in-house evaluation process, were subsequently sent for participation in the International
Convention on Quality Control Circles (ICQCC-2024) held in Colombo, Sri Lanka in November 2024. Three teams from Beximco
Pharma, one from Nuvista Pharma and one from Synovia Pharma won gold medal in the competition.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 71
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
,
GO
C
,
Annual Report 2023-24 | Environmental, Social and Governance | 71
Training
Training Hours
Soft Skills
1,1
1,176
1,55
,557
E-learning
1,61
1,619
Leadership
3,7
3,728
Manufacturing Excellence
30,0,671
Sales Training
213
13,760
60
Total
252
52,511
11
Functional
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
72 | Environmental, Social and Governance | Annual Report 2023-24
Scholarship Award 2023
Molecular Study of Dengue Virus
Support to BERNOSSUS
Corporate Events and CSR Initiatives
Distribution of stipends, laptop and certificates to the meritorious children of the factory employees.
Beximco Pharma sponsored a study examining the dengue virus’s epidemiological, clinical, and molecular characteristics
circulating in Chittagong. The research was carried out collaboratively by a team of investigators from Chittagong Medical College,
Chittagong University, and icddr,b.
Provided free medicines to Begum Rokeya Nari O
Shishu Shasthya Unnayan Sangstha (BERNOSSUS)
for treating underprivileged women and children
patients registered at the BERNOSSUS clinic.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 73
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
,
GO
C
,
Annual Report 2023-24 | Environmental, Social and Governance | 73
Support for Flood Affected People
Beximco Pharma extended its support to flood affected people by donating medicines, food, and other essential supplies. The
Company also organized free medical camps to provide immediate healthcare services to those in need. Demonstrating solidarity,
Beximco Pharma employees generously contributed their one day’s salary, collectively amounting to Taka 1 Crore, to the relief funds,
further amplifying the impact of the Company’s humanitarian efforts.
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AND GOVERNANCE
74 | Environmental, Social and Governance | Annual Report 2023-24
Free Dental Camps
Nationwide Cycle Rally “Pedal for Planet”
Sponsored free dental camps in Kishoreganj and Raipura, Narsingdi, led by Dr. Osama Bin Noor (Winner of Queen’s Young
Leaders Award 2016) to promote dental health and awareness in underprivileged communities.
In celebration of World Environment Day Jaago Foundation organized a nationwide cycle rally “Pedal for Planet”. Beximco
Pharma co-sponsored the event to promote environmental stewardship and community involvement to address climate change.
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AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 75
Iftar Events for Underprivileged Students
Beximco Pharma sponsored Iftar events organized by the Humanity Foundation (IHF) and Jaago Foundation on April 3 and
March 19, 2024, respectively. These events provided meals to underprivileged students from marginalized communities. IHF
promotes education and empowerment in marginalized communities, while the Jaago Foundation provides education and
support to underprivileged children.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
76 | Environmental, Social and Governance | Annual Report 2023-24
National Annual Sales & Marketing Conference 2024
The Annual Sales & Marketing Conference of Beximco Pharma was held in Cox’s Bazar from March 3-5, 2024. The conference
was attended by the entire sales and marketing team and other associated departments of BPL. Beximco Pharma’s COO,
Rabbur Reza, delivered keynotes, emphasizing the Company’s achievements and future goals. One of the event’s highlights was
the recognition of top performers of the sales teams.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 77
Annual Finance Conference
Annual Finance Conference of Beximco Pharma finance division was held during May 22- 25, 2024. The event was featured
with keynote presentations, panel discussions, and strategic business sessions led by heads of different functional department
attendee.
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
78 | Environmental, Social and Governance | Annual Report 2023-24
National ASE and RSE Conferences
CPhI Worldwide 2023
Beximco Pharma arranged two National ASE Conferences and a National RSE Conference and Leaders’ Meeting during
the year. These gatherings facilitated collaboration, insight sharing, and strategic discussions aimed at driving growth and
addressing challenges.
The Beximco Pharma team participated and showcased its products and services at the largest expo on pharmaceuticals, CPhI
Worldwide, held in Barcelona, Spain on October 24-26, 2023.
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AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 79
Celebration of World Environment Day
Celebration of Womens Day
National Productivity Day 2023 was celebrated at Beximco Pharma
Limited (BPL) on October 2, 2023, To mark the occasion, banners
highlighting key points on various aspects of productivity were
strategically displayed at different exit points throughout the factory
complex at Tongi.
National Productivity Day
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
80 | Environmental, Social and Governance | Annual Report 2023-24
Beximco Pharma was the Gold Sponsor of the ‘PHA Global-Summit 2024’ under the theme ‘Advancing Healthcare Together’
held at the United Convention Center, Dhaka during February 23-24, 2024. This was the first all-inclusive international medical
conference in Bangladesh where more than 2000 national and international physicians, researchers, and academicians from
different fields of medicine participated. The US-based Planetary Health Academia (PHA) is the largest medical organization
formed by non-resident Bangladeshi doctors, researchers, and academicians with the aim of transferring, updating, and
enhancing medical knowledge and technology for healthcare professionals in Bangladesh and across the globe.
PHA Global Summit 2024
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AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 81
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.
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AND GOVERNANCE
82 | Environmental, Social and Governance | Annual Report 2023-24
ENTAL, SOCIAL
ERNANCE
,
C
,
Repor
82 | Environmental, Soci
ENVIRONMENTAL
AND GOVERN
GO
ial and Governance | Annual
rt 2023-24
overnance | A
t
Executive Committee
The Board
of
Directors
Management
Committee
Audit Committee
Nomination and
Remuneration
Committee
Governance Structure
ernanc
Governance
nce
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 83
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
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C
,
Annual Report 2023-24 | Environmental, Social and Governance | 83
Executive Committee
Prof. Mamtaz Uddin Ahmed
Chairman
Osman Kaiser Chowdhury
Member
Reem H. Shamsuddoha
Member
Mohammad Asad Ullah, FCS
Secretary
Dr. Md. Ibraheem Hosein Khan
Chairman
Osman Kaiser Chowdhury
Member
Reem H. Shamsuddoha
Member
Mohammad Asad Ullah, FCS
Secretary
A S F Rahman
Chairman
Salman F Rahman
Vice Chairman
Iqbal Ahmed
Managing Director
Osman Kaiser Chowdhury
Director
A B Siddiqur Rahman
Director
Quamrun Naher Ahmed
Director
Reem H. Shamsuddoha
Director
Prof. Mamtaz Uddin Ahmed
Independent Director
Dr. Md. Ibraheem Hosein Khan
Independent Director
Mohammad Asad Ullah, FCS
Executive Director & Company Secretary
Audit Committee
Nomination and Remuneration Committee
Board of Directors
Board and Board Committees
Osman Kaiser Chowdhury
Member of the Board of Directors
Iqbal Ahmed
Managing Director
Rabbur Reza
Chief Operating Officer
Mohammad Ali Nawaz
Chief Financial Officer
Afsar Uddin Ahmed
Director, Commercial
ENVIRONMENTAL, SOCIAL
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84 | Environmental, Social and Governance | Annual Report 2023-24
84 | Environmental, Social and Governance | Annual Report 2022-23
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
Annual Report 2023-24 | Environmental, Social and Governance | 85
Management Committee
Iqbal Ahmed
Managing Director
Osman Kaiser Chowdhury
Member of the Board of Directors
Rabbur Reza
Chief Operating Officer
Mohammad Ali Nawaz
Chief Financial Officer
Afsar Uddin Ahmed
Director, Commercial
Lutfur Rahman
Director, Manufacturing
Zakaria Seraj Chowdhury
Head of Distribution Services & Director, International Marketing
Shamim Momtaz
Director, Manufacturing
Mohd. Tahir Siddique
Director, Quality
Rizvi Ul Kabir
Director, Marketing
Jamal Ahmed Choudhury
Director, Accounts & Finance
Dr. Selina Akter
Executive Director, Department of Medical Affairs
Shawkat Haider, PhD
Executive Director, Business Development & Corporate Affairs
Md. Mehboobul Haque
Executive Director, Factory Administration
Subodh Chandra Das
Executive Director, Research and Development
Mahfuzur Rahman
Executive Director, API
M A Arshad Bhuiyan
Executive Director, Human Resource
Md. Shah Imran
Executive Director, Procurement
Gazi Abdullah Al-Beruni
Executive Director, Project Planning & Support
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
86 | Environmental, Social and Governance | Annual Report 2023-24
Statements and Reports
Report of the Directors
87
Management Discussion and Analysis
107
Report of the Audit Committee
112
Report on the Activities of NRC
114
Investor Relations
117
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 87
Dear Shareholders,
On behalf of the Board of Directors and the entire Beximco Pharma family, we welcome you all to the 48th Annual General Meeting
of the Company.
It is our privilege to present the Report of the Directors and the Audited Accounts of the Company for the year ended 30 June 2024
along with the report of the Auditors thereon. The report has been prepared in compliance to Section 184 of the Companies Act, 1994
and the Bangladesh Securities and Exchange Commission (BSEC) Notification No. BSEC/CMRRCD/2006-158/207/Admin/80 dated 3
June 2018.
General Economic Overview
The global economic landscape in 2024 showed modest recovery with a projected growth rate of 3.2%, extending into 2025. While
advanced economies witnessed gradual expansion, emerging markets, including Bangladesh, faced a challenging environment. For
Bangladesh, FY 2023-24 was marked by significant macroeconomic headwinds. Inflation started at 9.69% in July 2023, peaking at
10.87% in October, and ended at 9.72% in June 2024, with the 12-month average inflation at 9.73%. The primary driver was a surge
in food prices, impacting real incomes and consumer purchasing power. The central bank’s measures, including lifting the interest
rate cap, tightening policy rates, and the introduction of a crawling peg exchange rate system, were aimed at taming the inflation
and stabilizing the economy. Bangladesh Taka depreciated by 8% to Taka 118 per USD from Taka 109, exacerbating cost pressures
on imports.
Bangladesh’s foreign exchange reserves depleted to USD 20.4 billion by June 2024 from USD 24.75 billion of the previous year. To
counteract the exchange rate volatility and inflationary pressures, the central bank implemented further monetary tightening, leading
to increased rates on deposits, loans, and treasury instruments, which affected business liquidity. Despite these challenges, the
country realized economic growth of 5.78% during 2022-23 fiscal year, slightly below the previous year’s 6.03%, reflecting ongoing
economic pressures.
We commenced the 2024-25 fiscal year amidst significant political upheaval, driven by the people’s longstanding demands for
economic and political justice as well as the right to freedom. The month of July witnessed extensive civil unrest, culminating in
a historic uprising that led to a change in government. On 8 August 2024, a new interim government was formed, tasked with
addressing the challenges posed by the political transition.
After the July uprising, the country experienced weakened law and order situation and widespread unrest across various sectors,
particularly among workers in industries such as garments and pharmaceuticals. These groups raised numerous demands, including
pay increases, leading to significant disruptions in business activities. Key sectors faced production and distribution challenges,
temporary factory closures, and export delays during the first quarter of the fiscal year. However, while the interim government
implemented several mitigating measures to stabilize the situation and improve the crisis, normalcy is gradually returning to the
overall business environment. Nonetheless, the law and order situation remains a concern, posing challenges to sustaining this
recovery fully.
Reflecting the challenging economic and political environment, multilateral financial institutions have adjusted their growth forecasts
for Bangladesh for FY 2024-25. The IMF revised its projection to 4.5%, a reduction of 2.1 percentage points from earlier estimates,
while the World Bank lowered its forecast to 4.0%. Despite challenges, there remains cautious optimism, as inflationary pressures
are expected to ease due to targeted monetary measures and reform initiatives.
The strain on foreign exchange reserves has shown signs of improvement, primarily driven by a surge in remittance inflows. During
Report of the Directors
STATEMENTS AND
REPORTS
88 | Statements and Reports | Annual Report 2023-24
the first four months of FY 2024-25 (July to October), inward remittances reached USD 8.94 billion, reflecting a robust growth of
over 30% compared to the same period last year. This has contributed to a reversal in the current account deficit and stabilization
of foreign exchange reserves, with gross reserves consistently around USD 25 billion and net reserves approximately USD 20 billion
since July 2024. As a result, the exchange rate between the domestic currency and the US Dollar has largely stabilized. However,
uncertainty remains regarding the long-term sustainability of this stability, given the broader economic and geopolitical challenges.
Review of Financial Performance
We are pleased to report a strong financial performance for FY 2023-24. Our consolidated revenue rose to Taka 44,391.6 million
from Taka 39,266.7 million in the previous year. Consolidated domestic revenue grew by 13.1% reaching Taka 41,433.2 million. We
attained an export revenue of Taka 2,958.4 million, a modest 7.1% up from the preceding year.
Our consolidated gross profit rose by 13.5%, reaching BDT 19,634.0 million. Operating profit saw a significant increase of 20.2%,
amounting to Taka 8,674.4 million compared to Taka 7,216.2 million in the previous year. The post-tax profit stands at Taka 5,866.8
million as against Taka 4,524.5 million earned in 2022-23 representing 29.7% YoY increase.
Despite macroeconomic challenges, including the continued depreciation of the domestic currency against the US dollar and record-
high inflation, the gross profit margin in 2023-24 remained largely at the same level at 44%. Strategic sourcing and procurement
initiatives, improved product mix, leveraging effect of double digit sales growth and upward price adjustments of few products helped
maintain the overall gross profit margin.
Sales and Profit Snapshot (Consolidated)
Amount in Million Taka
2023-24
2022-23
Growth
Net Revenue
44,391.6
39,266.7
13.1%
Gross Profit
19,634.0
17,305.0
13.5%
Operating Profit
8,674.4
7,216.2
20.2%
Pre-Tax Profit
7,525.5
6,068.8
24.0%
Net Profit after Tax
5,866.8
4,524.5
29.7%
Earnings Per Share (Tk.)
13.07
10.34
26.4%
The Company also maintained positive momentum across other profit metrics with operating profit growing by 20.2%, pretax profit
by 24.0% and net profit by 29.7%. Embarking on the impressive growth in sales and planned cost management strategies, operating
expenses as a percentage of sales declined to 24.7% from 25.7% of prior period that helped achieve higher operating profit margin.
Lower finance costs due to improved cash flows, Synovia Pharma’s transition to profit from previous year’s loss coupled with reduced
effective tax rate for the subsidiary companies contributed to the increase in net profit after tax. Consequently, earning per share (EPS)
increased to Taka 13.07 from prior year’s Taka 10.34.
Continuity of Other Income
The major items of the Company’s Other Income reported in the Consolidated Statement of Profit and Loss and Other Comprehensive
Income, consists of Interest Income, Cash Incentive on Export, and Royalty.
Interest income amounting to Taka 15.8 million is mainly derived from short term investment of the surplus cash generated by the
subsidiary company Nuvista Pharma. Continuity of generating income from this source is variable upon the interest rate and the
ability to generate cash surplus in the future period.
Exchange rate fluctuation gain/(loss) during the period amounted to Taka 8.9 million. Income or loss from this source is dependent
upon factors like depreciation of domestic currency against foreign currency, Company’s foreign exchange-denominated monetary
liabilities, such as foreign loans, or monetary assets, such as export receivables.
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 89
The Company’s reported income from cash incentives on exports amounted to Taka 281.4 million. Cash incentives are recognized
upon submission of claims that meet the eligibility criteria, which can only be made after the receipt of export proceeds. The income
from cash incentives is directly tied to the incentive rates, value of exports, and the corresponding proceeds remitted in a given year.
The government has reduced the rate of incentives to 8% from previous 10%. Effective from July 1, 2024 the rate has further been
reduced to 6%. Income from this source will largely depend on the government incentive policy.
Royalty income is earned from subsidiary company Nuvista Pharma and overseas partners for the sale of selected products. The
income of Taka 31.0 million earned from the subsidiary has been eliminated in the consolidated financial statements and thus the
amount of Taka 66.1 million represents the royalty earned from third parties. The royalty income is dependent on factors including
sales and profit.
The Company generated dividend income totalling Taka 61.0 million, with Taka 59.7 million stemming from the subsidiaries, which
was subsequently eliminated in the consolidated statement of profit and loss. The residual dividend income of Taka 1.3 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.
Profit and its Appropriation
The Board of Directors propose the appropriation of profit as follows:
Beximco Pharmaceuticals Limited (Standalone)
Amount in Thousand Taka
Particulars
2023-24
2022-23
Net Profit after Tax
5,610,513
4,588,009
Adjustment for depreciation of Revalued Assets
4,996
5,635
Profit Brought Forward
28,933,986
25,901,734
Profit Available for Appropriation
34,549,495
30,495,378
Proposed Dividend:
Cash Dividend
(1,784,448)
(1,561,392)
Profit Carried Forward
32,765,047
28,933,986
Dividend
The Board of Directors recommends 40% Cash Dividend i.e. Taka 4 per share of Taka 10 each for the year ended 30 June 2024. The
Company has declared no interim dividend during the year. The matter is placed for approval in the Annual General Meeting.
Retirement and Re-election of Directors
Mr. Osman Kaiser Chowdhury and Ms. Quamrun Naher 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 profile of the Directors are available in the Annexure- 6 of this report of the Board of Directors. The matter is placed for
approval in the Annual General Meeting
Re-appointment of the Independent Director
Dr. Md. Ibraheem Hosein Khan who has been serving as an Independent Director in the Board completed his first term of three
years on January 16, 2024. In compliance with 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 January 04, 2024
has reappointed Dr. Md. Ibraheem Hosein Khan as Independent Director of the Company for a further period of 3 years effective from
17 January 2024, subject to the approval of Shareholders in the Annual General Meeting.
STATEMENTS AND
REPORTS
90 | Statements and Reports | Annual Report 2023-24
Detailed profile of Dr. Md. Ibraheem Hosein Khan is available in Annexure- 6 of this report of the Board of Directors. The matter is
placed for approval in the Annual General Meeting
Appointment of Managing Director
As per Article-124 of the Articles of Association of the Company, the Board of Directors appointed Mr. Iqbal Ahmed, a Director of
the Company, as the Managing Director for a period of 5 (five) years effective from 03 March 2024, subject to the approval of the
Shareholders in this annual general meeting. He replaced Mr. Nazmul Hassan who resigned from his position on January 11, 2024.
Detailed profile of Mr. Iqbal Ahmed is available in Annexure- 6 of the report. The matter is placed for approval in the Annual General
Meeting.
Statutory 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 47th Annual General Meeting has carried out the audit for the year ended 30 June
2024. M. J. Abedin & Co., Chartered Accountants, the Auditors of the Company retires at this meeting. They did not express their
willingness for reappointment as Auditors of the Company for the year 2024-25.
MABS & J Partners, Chartered Accountants, SMC Tower (Level 5 & 7), Banani C/A, Road 17, Dhaka-1213 expressed their interest to be
appointed as statutory Auditors of the Company for the year 2024-25. As per recommendation made by Audit Committee, the Board
of Directors have proposed to appoint MABS & J Partners, Chartered Accountants as statutory Auditors for the year 2024-25, subject
to the approval of the Shareholders in this Annual General Meeting of the Company. The matter is placed for approval.
Corporate Governance Compliance Auditors
Pursuant to Code 9.2 of the Code of Corporate Governance issued by BSEC, Suraiya Parveen & Associates, Chartered Secretaries who
were appointed as Corporate Governance Compliance Auditors of the Company in the 47th Annual General Meeting have examined
the compliance status of the Company to the Corporate Governance Code for the year 2023-24.
Suraiya Parveen & Associates, Chartered Secretaries, the Corporate Governance Compliance Auditors of the Company, retire at
this meeting and have expressed their willingness to continue in office for the year 2024-25. The Board after due consideration
recommended for the reappointment of Suraiya Parveen & Associates, Chartered Secretaries as Corporate Governance Compliance
Auditors for the year 2024-25. The matter is placed for approval in the Annual General Meeting.
Change of Name of the Company
The Board of Directors, in its meeting held on 28 October 2024, decided to change the name of the Company from “Beximco
Pharmaceuticals Limited” to “Beximco Pharmaceuticals PLC” to comply with the provisions of the Companies Act, 1994 (as amended
in 2020) and to reflect this change in the relevant clauses of the Memorandum and Articles of Association of the Company. A Special
Resolution is to be passed at the AGM as a Special Business item, seeking approval for the name change from the shareholders of
the Company.
Risks and Concerns
Detailed discussion of the Company’s exposure to Risks and Concerns and corresponding mitigation strategies has been provided in
Annexure- 7. Additionally, Note Number 51 of the Financial Statements contained further discussion on financial risk exposure and
mitigation strategies of the Company.
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 Note No. 40 of the Financial Statements.
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 91
Remuneration to Directors
All the Directors of 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. All members of the senior management team 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 contracts. Additionally, Beximco Pharma has defined contribution plan (Provident Fund) and a defined benefit plan
(Gratuity) for employees irrespective of their positions. The Company has a rigorous performance evaluation and appraisal system
linked to KPIs. Employee salary and allowance are reviewed once in every year and revised based on multiple factors, including
individual performance, achivement of KPIs, employee potential, inflation, and overall Company’s 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
Key Operating and Financial Data
The summarized key operating and financial data for 2023-24 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.
STATEMENTS AND
REPORTS
92 | Statements and Reports | Annual Report 2023-24
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
Chairman
9
Salman F Rahman
Vice Chairman
12
Iqbal Ahmed
Managing Director*
11
Osman Kaiser Chowdhury
Director
12
Nazmul Hassan
Former Managing Director**
6
A B Siddiqur Rahman
Director
11
Reem H. Shamsuddoha
Director
12
Quamrun Naher Ahmed
Director
12
Prof. Mamtaz Uddin Ahmed
Independent Director
11
Dr. Md. Ibraheem Hosein Khan
Independent Director
12
*Mr. Iqbal Ahmed, Director of the Board was appointed Managing Director with effect from 3 March, 2024
**Mr. Nazmul Hassan resigned as Managing Director of the Company on 11 January, 2024.
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,
Osman Kaiser Chowdhury
Iqbal Ahmed
Director
Managing Director
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 93
Annexure-1
[ As per condition No. 1(5)(xxvi)]
Beximco Pharmaceuticals Limited
Declaration by CEO and CFO
Date: 28 October 2024
The Board of Directors
Beximco Pharmaceuticals Limited
Subject: : Declaration on Financial Statements for the year ended on 30 June 2024
Dear Sirs,
Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2016-158/207/Admin/80,
Dated June 03, 2018 under section 2CC of the Securities and Exchange Ordinance 1969, we do hereby declare that:
1. The Financial Statements of Beximco Pharmaceuticals Limited for the year ended on 30 June 2024 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in the
Bangladesh and any departure there from has been adequately disclosed;
2. The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order for the
financial statements to reveal a true and fair view;
3. The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in its
financial statements.
4. To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance of
accounting records.
5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and procedures
of the Company were consistently followed; and
6. The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and there
exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern.
In this regard, we also certify that:
(i) We have reviewed the financial statements for the year ended on 30 June 2024 and that to the best of our knowledge and belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are fraudulent,
illegal or in violation of the code of conduct for the company’s Board of Directors or its members.
Sincerely yours,
Iqbal Ahmed
Mohammad Ali Nawaz
Managing Director
Chief Financial Officer
STATEMENTS AND
REPORTS
94 | Statements and Reports | Annual Report 2023-24
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19
Amount in Thousand Taka
Net Revenue
44,391,604
39,266,662
34,669,172
29,493,574
25,611,947
22,816,630
Domestic
41,433,251
36,503,415
31,984,076
26,369,573
22,860,157
20,313,997
Export
2,958,353
2,763,247
2,685,096
3,124,001
2,751,790
2,502,633
Gross Profit
19,633,987
17,304,963
15,820,210
13,923,502
11,899,100
10,620,343
Profit Before Tax
7,525,476
6,068,769
6,686,945
6,377,548
4,653,440
3,946,065
Net Profit
5,866,771
4,524,468
4,998,628
5,165,750
3,544,483
3,040,403
EPS/Restated EPS- Taka
13.07
10.34
11.48
11.49
7.88
7.48
Net Operating Cash Flow Per Share
18.75
13.64
11.69
13.50
13.67
7.30
New Product Launched-numbers
30
14
30
22
26
20
Dividend
40%
35%
35%
35%
25%*
15%
* Includes 10% Stock Dividend
Year End
30 June 2024
30 June 2023
30 June 2022
30 June 2021
30 June 2020
30 June 2019
Amount in Thousand Taka
Authorized Capital
15,000,000
15,000,000
15,000,000
15,000,000
15,000,000
15,000,000
Paid up Capital
4,461,121
4,461,121
4,461,121
4,461,121
4,055,564
4,055,564
Shareholders’ Equity
51,902,903
47,619,665
44,636,004
37,364,865
32,797,450
29,864,324
Fixed Assets (Gross)
60,939,036
59,041,189
57,035,893
47,887,415
45,615,625
43,454,027
Net Asset Value (NAV) Per Share -Taka
107.48
97.91
91.01
83.01
80.12
72.96
Market Price Per Share
118.1
146.2
154.60
177.3
69.20
83.50
Price Earnings Ratio (Times)
9.04
14.14
13.47
15.43
8.78
11.16
Number of Shareholders
48,217
54,662
54,446
55,248
56,101
56,177
Number of employees
6,021
5,706
5,377
5,104
4,755
4,489
Annexure- 2
Key Operating and Financial Data
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 95
Name-wise details
Shares held
Parent/Subsidiary/Associate Companies and Other Related Parties:
Beximco Holdings Ltd.
24,897,715
Bangladesh Export Import Company Ltd.
3,189,926
New Dacca Industries Ltd.
14,345,757
Beximco Engineering Ltd.
965,206
National Investment & Finance Company Ltd.
1,308,505
Directors, CEO, Company Secretary, CFO, Head of Internal Audit and their Spouses and Minor Children:
A S F Rahman, Chairman
9,058,888
Salman F Rahman, Vice Chairman
9,080,095
Company Secretary, Spouse and Minor Children
-
Chief Financial Officer, Spouse and Minor Children
-
Head of Internal Audit, Spouse and Minor Children
-
Executives
-
Shareholders holding 10% or more voting interest in the Company
-
The Pattern of Shareholding
Annexure-3
STATEMENTS AND
REPORTS
96 | Statements and Reports | Annual Report 2023-24
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Remarks
(if any)
Complied
Not
Complied
Corporate Governance Compliance Report
As per condition No. 1(5)(xxvii), status of compliance with the conditions imposed by the Commissions Notification No. BSEC/
CMRRCD/2006-158/207/Admin/80, dated 3 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969
(Report under Condition No. 9)
1
Board of Directors (BOD)
1(1)
Board’s Size [number of Board members to be 5 – 20]
√
1(2)
Independent Directors (ID)
1(2)(a)
Number of Independent Directors [at least 2 directors or 1/5th of the Board members
whichever is higher, shall be the Independent Directors]
√
The Board shall appoint at least 1 female Independent Director in the Board of Directors
of the company
-
Will be complied in
due time
1(2)(b)(i)
Holding no share or holding less than 1% shares
√
1(2)(b)(ii)
Not being a sponsor and connected with any sponsor or director or nominated director
or shareholder of the company or any of its associates, sister concerns, subsidiaries, and
parents or holding entities who holds 1% or more shares of the total paid-up shares of the
Company on the basis of family relationship and his or her family members are also not
allowed to hold more than 1% shares of the total paid-up shares of the Company
√
1(2)(b)(iii)
Not an executive of the company in immediately preceding 2 (two) financial years
√
1(2)(b)(iv)
Not having any pecuniary or otherwise relationship with the company or its subsidiary/
associated companies
√
1(2)(b)(v)
Not a member or TREC (Trading Right Entitlement Certificate) holder, director or officer of
any stock exchange
√
1(2)(b)(vi)
Not a shareholder, director excepting independent director or officer of any member or
TREC holder of any stock exchange or an intermediary of the capital market
√
1(2)(b)(vii)
Not a partner or an executive or was not a partner or an executive during the preceding 3
(three) years of the company’s statutory audit firm or audit firm engaged in internal audit
services or audit firm conducting special audit or professional certifying compliance
√
1(2)(b)(viii)
Not an Independent Director in more than 5 listed companies
√
1(2)(b)(ix)
Not been reported as a defaulter in the latest Credit Information Bureau (CIB) report of
Bangladesh Bank
√
1(2)(b)(x)
Not been convicted for a criminal offence
√
1(2)(c)
To be appointed by BOD and approved by the shareholders in the AGM, subject to prior
consent of the Commission and after due consideration of recommendation of the NRC
√
1(2)(d)
The post cannot remain vacant for more than 90 days
√
1(2)(e)
Office tenure of Independent Director
√
1(3)
Qualification of Independent Director
1(3)(a)
Knowledgeable, having integrity, ability to ensure compliance with relevant laws and make
meaningful contribution to the business
√
1(3)(b)(i)
Business Leader: Promoter or director of an unlisted company having minimum paid-up
capital of Tk. 100.00 million or any listed company or a member of any national or
international chamber of commerce or registered business association, or
√
1(3)(b)(ii)
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
1(3)(b)(iii)
Former or existing official of government or statutory or autonomous or 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 or commerce or business or Law:
Provided that in case of appointment of existing official as independent director, it requires
clearance from the organization where he or she is in service, or
1(3)(b)(iv)
University Teacher having educational background in Economics or Commerce or
Business Studies or Law, or
Annexure-4
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 97
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Remarks
(if any)
Complied
Not
Complied
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)
Having at least 10 (ten) years of experiences in any field mentioned in clause (b)
1(3)(d)
Qualification of Independent Directors may be relaxed subject to prior approval of the
Commission.
N/A
1(4)
Duality of Chairperson of the Board and MD or CEO
1(4)(a)
The positions of the Chairperson of the Board and MD and/or CEO of the company shall be
different individuals
√
1(4)(b)
MD and/or CEO of a listed company shall not hold the same position in another listed
company
√
1(4)(c)
Chairperson shall be a non-executive directors of the company
√
1(4)(d)
The Board shall clearly define respective roles and responsibilities of the Chairperson and
the MD and/or CEO
√
1(4)(e)
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
√
1(5)
Inclusions in Director’s Report to Shareholders
1(5)(i)
Industry outlook and possible future developments
√
1(5)(ii)
Segment-wise or product-wise performance
√
Company operates
in a single product
segment
1(5)(iii)
Risks and concerns including internal and external risk factors, threat to sustainability and
negative impact on environment, if any
√
Annexure- 7
1(5)(iv)
Discussion on COGS, Gross Profit and Net Profit Margins
√
1(5)(v)
Discussion on continuity of Extra-Ordinary gain or loss
√
1(5)(vi)
A detailed discussion on related party transactions
√
1(5)(vii)
A statement of utilization of proceeds raised through public issues, rights issues and/or
any other instruments
N/A
1(5)(viii)
Explanation, if the financial results deteriorate after going for IPO, RPO, Right Offer, Direct
Listing, etc.
N/A
1(5)(ix)
Explanation about significant variance between Quarterly Financial performance and
Annual Financial Statements
N/A
1(5)(x)
Remuneration paid to directors including Independent Directors
√
1(5)(xi)
Statement on fair presentation in the financial statements
√
1(5)(xii)
Maintaining proper books of accounts
√
1(5)(xiii)
Consistent application of appropriate accounting policies, and accounting estimates being
reasonable and prudent
√
1(5)(xiv)
IAS/IFRS applied and adequate disclosure made
√
1(5)(xv)
Soundness of internal control system and its monitoring
√
1(5)(xvi)
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)
Summary of key operating/financial data of last 5 years
√
Annexure- 2
1(5)(xx)
Reason for non declaration of Dividend
N/A
1(5)(xxi)
Board’s statement on interim bonus share or stock dividend
N/A
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
√
Annexure-3
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
√
STATEMENTS AND
REPORTS
98 | Statements and Reports | Annual Report 2023-24
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Remarks
(if any)
Complied
Not
Complied
1(5)(xxiv)
Appointment/re-appointment of a director
1(5)(xxiv)(a)
A brief resume of the director
√
Annexure- 6
1(5)(xxiv)(b)
Nature of his/her expertise in specific functional areas
√
1(5)(xxiv)(c)
Names of companies in which he/she holds directorship and the membership of
committees of the board
√
1(5)(xxv)
A Management’s Discussion and Analysis signed by CEO or MD focusing on:
1(5)(xxv)(a)
Accounting policies and estimation
√
1(5)(xxv)(b)
Changes in accounting policies and estimation
√
1(5)(xxv)(c)
Comparative analysis of financial performance or results and financial position as well
as cash flows for current financial year with immediate preceding five years explaining
reasons thereof
√
1(5)(xxv)(d)
Compare such financial performance or results and financial position as well as cash
flows with the peer industry scenario
√
1(5)(xxv)(e)
Briefly explain the financial and economic scenario of the country and the globe
√
1(5)(xxv)(f)
Risks and concerns issues related to the financial statements, explaining such risk and
concerns mitigation plan of the company
√
1(5)(xxv)(g)
Future plan or projection or forecast for company’s operation, performance and financial position
√
1(5)(xxvi)
Declaration or certification by the CEO and the CFO to the Board as required under
condition No. 3(3) shall be disclosed as per Annexure- 1
√
Annexure- 1
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.
√
1(5)(xxviii)
The Directors’ report to the shareholders does not require to include the business
strategy or technical specification related to products or services, which have business
confidentiality
√
1(6)
Meetings of the Board of Directors
1(6)
Shall conduct Board meetings and record the minutes of the meetings as per the
provisions of the relevant Bangladesh Secretarial Standards (BSS)
√
1(7)
Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
1(7)(a)
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.
√
1(7)(b)
The code of conduct as shall be posted on the website of the company
√
2
Governance of Board of Directors of Subsidiary Company
2(a)
Composition of BOD to be similar to holding company
√
2(b)
One Independent Director to be in both holding and subsidiary company
√
2(c)
Minutes of Board meetings of subsidiary company to be placed at following Board
meeting of holding company
√
2(d)
Minutes of respective Board meeting of holding company to state that affairs of subsidi-
ary company be reviewed
√
2(e)
Audit Committee of holding company to review financial statements/investments of
subsidiary company
√
3
Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer
(CFO), Head of Internal Audit and Compliance (HIAC) and Company Secretary (CS)
3(1)
Appointment
3(1)(a)
Appointment of MD or CEO, CS, CFO and a HIAC
√
3(1)(b)
The positions of the MD or CEO, CS, CFO and HIAC shall be different individuals
√
3(1)(c)
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
Provided that CFO or CS of any listed company may be appointed for the same position in
any other listed or non-listed company under the same group for reduction of cost or for
technical expertise, with prior approval of the Commission,
Provided further that the remuneration and perquisites of the said CFO or CS shall be
shared by appointing companies proportionately
√
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 99
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Remarks
(if any)
Complied
Not
Complied
3(1)(d)
The Board shall clearly define respective roles, responsibilities and duties of the CFO, the
HIAC and the CS
√
3(1)(e)
The MD or CEO, CS, CFO and HIAC shall not be removed from their position without
approval of the Board
√
3(2)
The MD or CEO, CS, CFO and HIAC of the company shall attend the meetings of the Board
√
3(3)
Duties of MD or CEO and CFO
3(3)(a)
The MD or CEO and CFO shall certify to the Board that they have reviewed financial
statements for the year
√
3(3)(a)(i)
Financial statements do not contain anything which is materially untrue or misleading
√
3(3)(a)(ii)
Financial statements present a true and fair view of the company’s affairs and are in
compliance with existing accounting standards and applicable laws
√
3(3)(b)
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
√
3(3)(c)
The certification of the MD or CEO and CFO shall be disclosed in the Annual Report
√
Annexure-1
4
Board of Directors’ Committee
4(i)
Audit Committee
√
4(ii)
Nomination and Remuneration Committee
√
5
Audit Committee
5(1)(a)
Having Audit Committee as a sub-committee of the BOD
√
5(1)(b)
Assist the BOD in ensuring fairness of financial statements and a good monitoring system
√
5(1)(c)
Duties of Audit Committee clearly set out in writing
√
5(2)(a)
Audit Committee composition
√
5(2)(b)
Audit Committee members to be non-executive
√
5(2)(c)
Members to be “financially literate” and at least one to have 10 years of accounting/
financial management experience
√
5(2)(d)
Vacancy in Audit Committee to be filled up immediately or no later than 60 days
√
5(2)(e)
The CS to act as the secretary of the Audit Committee
√
5(2)(f)
No quorum in Audit Committee meeting without one Independent Director
√
5(3)(a)
Chairperson to be an Independent Director, selected by the BOD
√
5(3)(b)
In the absence of the Chairperson of the Audit Committee, the remaining members may
elect one of themselves as Chairperson for that particular meeting
√
5(3)(c)
Chairperson of audit committee to remain present in AGM
√
5(4)(a)
The Audit Committee shall conduct at least its four meetings in a financial year
√
5(4)(b)
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
√
5(5)
Role of Audit Committee
5(5)(a)
Oversee the financial reporting process
√
5(5)(b)
Monitor choice of accounting policies and principles
√
5(5)(c)
Monitor Internal Audit and Compliance process, including approval of the Internal Audit
and Compliance Plan and review of the Internal Audit and Compliance Report
√
5(5)(d)
Oversee hiring and performance of external auditors
√
5(5)(e)
Meeting with the external auditors for review of the annual financial statements
√
5(5)(f)
Review the annual financial statements
√
5(5)(g)
Review the quarterly and half yearly financial statements
√
5(5)(h)
Review the adequacy of internal audit function
√
5(5)(i)
Review the Management’s Discussion and Analysis before disclosing in the Annual Report
√
5(5)(j)
Review statement of significant related party transactions
√
5(5)(k)
Review Letter of Internal Control weakness issued by statutory auditors
√
STATEMENTS AND
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100 | Statements and Reports | Annual Report 2023-24
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Remarks
(if any)
Complied
Not
Complied
5(5)(l)
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
-
-
No such IPO/RPO/
Right Issue occurred
during the year
5(6)(a)
Reporting to the Board of Directors
5(6)(a)(i)
Reporting on the activities of Audit Committee
√
5(6)(a)(ii)(a)
Reporting on conflicts of interests
-
-
Audit Committee
found no such issue
or activity
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)
Reporting to the Shareholders and General Investors
√
6
Nomination and Remuneration Committee (NRC)
6(1)
Responsibility to the Board of Directors
6(1)(a)
Shall have a NRC as a sub-committee of the Board
√
6(1)(b)
Assists the Board in formulation of the NRC policy
√
6(1)(c)
The Terms of Reference (ToR) of the NRC shall be clearly set forth in writing
√
6(2)
Constitution of the NRC
6(2)(a)
At least three members including an Independent Director
√
6(2)(b)
At least 2 members of the Committee shall be nonexecutive directors
√
6(2)(c)
Members of the Committee shall be nominated and appointed by the Board
√
6(2)(d)
The Board reserve the authority to remove and appoint any member of the Committee
√
6(2)(e)
The Board shall fill the vacancy in case of death, resignation, disqualification, or removal
of any member
-
-
No such instance
occurred during the
period
6(2)(f)
The Chairperson of the Committee may appoint external expert for advice or suggestion
-
-
No such instance
occurred during the
period
6(2)(g)
The company secretary shall act as the secretary of the Committee
√
6(2)(h)
Quorum of the NRC meeting shall not constitute without attendance of at least an Inde-
pendent Director
√
6(2)(i)
No remuneration other than director fees/honorarium for any member
√
6(3)
Chairperson of the NRC
6(3)(a)
Board shall select 1 (one) member of the NRC to be Chairperson who shall be an ID
√
6(3)(b)
In the absence of regular Chairperson, the position may elect from the remaining members
of the committee
√
6(3)(c)
Chairperson shall attend the AGM
√
6 (4)
Meeting of the NRC
6(4)(a)
At least one meeting in a financial year
√
6(4)(b)
Any emergency meeting upon request by any member of the NRC
-
-
No such instance
happened during the
period
6(4)(c)
Quorum: Higher of two members or 2/3 of total members including at least one independent
director
√
6(4)(d)
The proceedings of each meeting shall duly be recorded in the minutes and such minutes
shall be confirmed in the next meeting of NRC
√
6(5)
Role of the NRC
6(5)(a)
Shall be independent and responsible or accountable to the Board and to the shareholders
√
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 101
Condition
No.
Title
Compliance Status (“√” in
appropriate Column)
Remarks
(if any)
Complied
Not
Complied
6(5)(b)
NRC shall oversee, among others, the following matters and make report with
recommendation to the Board:
6(5)(b)(i)
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:
6(5)(b)(i)(a)
The level and composition of remuneration shall be reasonable and sufficient to attract,
retain and motivate suitable directors
√
6(5)(b)(i)(b)
Clear relationship among remuneration, performance & benchmarks
√
6(5)(b)(i)(c)
Balance between fixed and incentive pay reflecting short and long-term performance
objectives appropriate to the working of the company and its goals
√
6(5)(b)(ii)
Devising a policy on Board’s diversity
√
6(5)(b)(iii)
Identification of qualification of directors and recommendation for their appointment and
removal to the Board
√
6(5)(b)(iv)
Evaluating the performance of independent directors and the Board
√
6(5)(b)(v)
Identifying needs for employees and determine their selection, transfer or replacement and
promotion criteria
√
6(5)(b)(vi)
Developing, recommending and reviewing annually the company’s human resources and
training policies
√
6(5)(c)
Disclose the nomination and remuneration policy and the evaluation criteria and activities
of NRC during the year at a glance in its annual report
√
7
External or Statutory Auditors
7(1)(i)
Non-engagement in appraisal/valuation/fairness opinions
√
7(1)(ii)
Non-engagement in designing & implementation of Financial Information System
√
7(1)(iii)
Non-engagement in Book Keeping or accounting
√
7(1)(iv)
Non-engagement in Broker-Dealer services
√
7(1)(v)
Non-engagement in Actuarial services
√
7(1)(vi)
Non-engagement in Internal Audit services or special audit services
√
7(1)(vii)
Non-engagement in services determined by Audit Committee
√
7(1)(viii)
Not involved in audit or certification services on compliance of corporate governance
√
7(1)(ix)
Not involved in any other service that creates conflict of interest
√
7(2)
No partner or his/her family or employees of the external audit firms hold any share at least
during the tenure of their audit assignment
√
7(3)
Representative of external auditors shall remain present in the AGM
√
8
Maintaining a website by the Company
8(1)
An official website linked with the website of the stock exchange
√
8(2)
Website shall keep functional from the date of listing
√
8(3)
Shall make available the detailed disclosures on website as required under the listing
regulations of the concerned stock exchanges
√
9
Reporting and Compliance of Corporate Governance
9(1)
Compliance certificate on Corporate Governance Code of the Commission shall be
disclosed in the Annual Report
√
Annexure- 5
9(2)
The professional who will provide the certificate on compliance of this Corporate
Governance Code shall be appointed by the shareholders in the AGM
√
9(3)
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
√
STATEMENTS AND
REPORTS
102 | Statements and Reports | Annual Report 2023-24
Annexure-5
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 103
Annexure-6
Profile of Managing Director and Directors seeking re-election/re-appointment
Osman Kaiser Chowdhury
Mr. Osman Kaiser Chowdhury is a member of the Institute of Chartered Accountants of England and Wales and a Fellow of the
Institute of Chartered Accountants of Bangladesh. With over 40 years of association with Beximco Companies, he has extensive
expertise in diverse business domains, particularly in finance and corporate affairs. Mr. Chowdhury brings more than 13 years of
international experience, including his tenure in the United Kingdom. Currently, he serves as the Managing Director of Bangladesh
Export Import Company Ltd. He also holds positions on the Boards of several listed and non-listed companies, including Shinepukur
Ceramics Ltd., Beximco Power Company Limited, and I & I Services Limited.
Iqbal Ahmed
Mr. Iqbal Ahmed has been associated with Beximco companies since 1972, holding senior positions across various entities within the
organization. He earned a Bachelor’s Degree in Science from the University of Dhaka in 1966. With over 50 years of diverse business
experience, his expertise spans sectors including trading, jute, textiles, pharmaceuticals, engineering, IT, and more. A member of the
Beximco Pharma board since 1985, Mr. Ahmed has also contributed to the media landscape in Bangladesh as the publisher of two
notable national dailies: The Independent (English) and Muktakantha (Bengali). He is a member of the Board of Directors of several
listed and non-listed companies including Bangladesh Export Import Co Limited, Shinepukur Ceramics Limited and I & I services
Limited.
Quamrun Naher Ahmed
Ms. Quamrun Naher Ahmed is a retired Civil Servant with extensive experience in senior management and policy roles. She most
recently served as Additional Secretary in the Financial Institutions Division of the Ministry of Finance. Throughout her career, she
worked in key economic ministries, including Shipping, Commerce, Home Affairs, and Fisheries & Livestock, gaining a comprehensive
understanding of the economy, governance, and society while managing large bureaucracies. Ms. Ahmed holds an MPhil in Social
Change from the Norwegian University of Science and Technology (NTNU) and an MSS in Economics from the University of Dhaka. She
has completed various training programs, workshops, and conferences in Public Administration, Development Management, Law,
Accounts, and Finance, both locally and internationally. She also served on the boards of IFIC Bank Limited, Karmasangsthan Bank
Limited, and other organizations.
Dr. Ibrahim Hosen Khan
Dr. Md. Ibraheem Hosein Khan is a retired Civil Servant. He retired as Secretary, Ministry of Cultural Affairs, Government of Bangladesh.
Before his retirement from service in the Bangladesh Government, he worked in a number of different Government departments
including the Prime Minister’s Office, Ministry of Land and Ministry of Cultural Affairs. Dr. Khan has also served as Administrator
for the Dhaka South City Corporation. Dr. Khan holds a PhD from Jahangirnagar University, Dhaka, two master’s degrees and two
bachelor’s degrees from institutions in Bangladesh, Australia and the United Kingdom. He participated in a wide range of trainings,
workshops/ Symposiums abroad during his service life.
STATEMENTS AND
REPORTS
104 | Statements and Reports | Annual Report 2023-24
Annexure-7
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 ongoing war in Ukraine and Middle east crisis on a global scale and rising inflation, 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 identifies, assesses, and addresses a wide
spectrum of risks that have the potential to impact our operational and financial 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-defined procedures to address risks stemming from both internal and external sources, there
remain uncertainties beyond the Company’s control that could influence 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
inflation could, akin to other industries, have repercussions on the future demand for pharmaceuticals. Additionally, global economic
instability can exert an influence on the sector, potentially affecting its growth and profitability.
Bangladesh, much like numerous other nations, presently grapples with macroeconomic challenges, including high inflation,
depreciation of the local currency, and sluggish economic growth. Pollical instability with weak governess issues remain core
challenge for Bangladesh. Despite these challenges, Bangladesh has consistently achieved significant 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 significantly 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, all restrictions
and regulatory cap on market interest have been lifted leaving interest on bank borrowings to be determined by market and the
banker-customer relationship. Due to tightened monetary policy to tame high inflation, policy rates, treasury bonds and bills rates
have risen significantly. The upward trajectory interest rates have 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 been experiencing unsettling volatility in foreign exchange rates, attributed to an unfavourable gap
between foreign exchange inflows and outflows, resulting in a substantial depletion of the country’s foreign exchange reserve
and the depreciation of the Taka. The volatility in forex markets and depreciation of local currency has significant impacts on the
Company’s raw material costs in Taka terms, and on its profit margin. However, foreign exchange liquidity risks in Bangladesh have
significantly eased recently, thanks to the introduction of a crawling peg that has stabilized exchange rates over the past few months
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 105
and curtailed the depreciation of the Bangladeshi Taka. The current account deficit has been reversed, and the previously declining
foreign exchange reserves have stabilized, with gross reserves consistently hovering around $25 billion and net reserves around $20
billion since July 2024. The improvement is further bolstered by a surge in remittances and renewed inflows of foreign aid and loans.
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 industry is squarely reliant on imported Active Pharmaceutical Ingredients (APIs), exposing companies to
risks associated with international price fluctuations. Any substantial increase in global API prices could adversely impact profitability.
Additionally, disruptions in the supply chain caused by global conflicts, wars, or crises such as the recent pandemic may pose
challenges in securing a steady supply of raw materials, thereby affecting production continuity.
Beximco Pharma addresses these risks by sourcing raw materials from a diversified pool of suppliers, both local and international,
at competitive prices. This approach minimizes dependency on any single supplier, thereby reducing individual supplier influence
over procurement costs. The company maintains strong relationships with suppliers, many of whom operate through local agents,
ensuring efficient communication and supply management. Furthermore, the company manufactures some APIs in-house and is
actively expanding its API production capacity to enhance self-reliance and mitigate supply chain risks further.
Operational Risks
Operational risks refer to the potential for disruptions that could hinder the achievement of business targets. These risks may
arise from manufacturing shutdowns, production failures, equipment malfunctions, production errors, quality control issues, labor
unrest, and process inefficiencies. To minimize these risks, Beximco Pharma has implemented robust measures to ensure smooth
operations and prevent production disruptions. The company conducts routine inspections and regular maintenance of its facilities
and equipment. It also invests consistently in the balancing, modernization, rehabilitation, and expansion (BMRE) of its infrastructure
to enhance operational efficiency and reliability.
To safeguard against power supply interruptions, the company has established alternative power arrangements, including captive
power generation and access to the DESCO line, ensuring an uninterrupted energy supply for production activities. Additionally, Beximco
Pharma operates a dedicated project engineering department with 200 skilled engineers, tasked with overseeing maintenance and
ensuring a continuous supply of utilities to support manufacturing operations.
The Company proactively manages labor relations through fair practices, open communication, and employee well-being initiatives
to prevent labor unrest. The Company has agreements with more than one vendor for supply of outsourced labor. The company also
proactively mitigates potential financial impacts from operational disruptions by maintaining comprehensive insurance coverage for
its plant machinery, equipment, operating assets, and potential operating losses due to business interruptions.
Regulatory and Compliance Risks
Non-compliance with regulatory and compliance requirements can lead to operational disruptions for the Company. The dynamic
legal and regulatory environment, coupled with increasing societal expectations, particularly regarding environmental and social
responsibilities, presents ongoing challenges. Failure to comply with these laws and regulations may result in reputational damage,
significant fines or penalties, and potential civil or criminal liabilities.
Beximco Pharma operates under a comprehensive framework of regulations, covering areas such as product safety, trademarks,
patents, labor practices, environmental standards, fire safety, competition laws, employee welfare, corporate governance, stock
market reporting, employment laws, and tax compliance. The Company diligently adheres to all applicable rules and regulations.
Additionally, the supportive policies of the Government of Bangladesh present no immediate regulatory risks to the industry.
STATEMENTS AND
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106 | Statements and Reports | Annual Report 2023-24
Cybersecurity & IT systems
In today’s interconnected digital landscape, cybersecurity breaches, including unauthorized access, data theft, and system
manipulation, pose significant risks to organizational operations. Such threats, coupled with potential catastrophic IT system failures,
endanger operational integrity. Beximco Pharma is exposed to a range of cybersecurity risks, including advanced cyber-attacks,
phishing, ransomware, social engineering, and vulnerabilities linked to third-party systems, necessitating a strategic approach to
fortify defenses.
The Company is committed to protecting its digital assets through a robust cybersecurity strategy. This approach incorporates
best practices in risk management, advanced technologies, regular employee training, and adaptive measures to address evolving
threats. Key initiatives include periodic vulnerability assessments, advanced threat detection systems, secure network infrastructures,
comprehensive cybersecurity audits, and rigorous business continuity and disaster recovery planning. By maintaining a proactive
stance and empowering employees through extensive training, the Company ensures swift identification, mitigation, and response to
potential threats, safeguarding its digital assets and reinforcing stakeholder trust.
Manufacturing and Product Quality
Failure to comply with quality regulations, guidelines, and internal or external standards throughout a product’s lifecycle can result
in safety concerns or quality issues, posing risks to consumers and the Company. The development and production of Beximco
Pharma’s products involve complex processes regulated by global health authorities. Whether produced in-house or by third parties,
strict adherence to regulatory requirements and internal quality benchmarks is critical to delivering safe and effective therapies to
patients with unmet medical needs.
Non-compliance with these obligations can lead to severe consequences, including regulatory warnings, manufacturing suspensions,
product recalls, legal actions, and delays or denials of product approvals. Recognizing these risks, Beximco Pharma has established
rigorous quality standards implemented consistently across all manufacturing facilities. These standards are embedded in standard
operating procedures and are supported by regular quality and Good Manufacturing Practice (GMP) audits to ensure compliance.
The Company also conducts supplier audits and inspections, particularly for critical suppliers and materials, to ensure the quality
of incoming ingredients. Key performance indicators related to quality are tracked and reported regularly, reinforcing accountability
and transparency. This comprehensive approach ensures that Beximco Pharma’s products meet the highest quality standards,
safeguarding customer trust and patient well-being.
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 107
Management Discussion and Analysis
Macro-economic Overview
As we reflect on the past fiscal year, Bangladesh’s economy faced significant macroeconomic challenges, adding further strain to
already struggling businesses and industries. During FY 2023-24, the economy remained constrained by persistent high inflation, a
widening balance of payments deficit, depleting foreign exchange reserves, currency depreciation, and vulnerabilities in the financial
sector. Additionally, limited job creation intensified social and economic pressures, highlighting the pressing need for targeted
interventions to stabilize and revitalize the economy.
According to the World Bank, Bangladesh’s GDP growth slowed to 5.2% in FY 2023-24, underscoring weakened consumption and
export performance. Inflationary pressures, driven by escalating food and energy prices, hovered around 10% throughout the year.
Notably, food inflation surged past 14%, a level not seen in 13 years, compounding difficulties for households and businesses alike.
The currency devaluation, stemming from shrinking forex reserves, further escalated the cost of imported materials, increasing
production costs and pressuring industrial operations.
Political instability from July onwards added another layer of complexity. Civil unrest demanding democratic right and justice
culminated in a government transition to an interim Government in August of the new fiscal year. This period of political turbulence,
widespread labor unrest across different industries, compounded by a poor law and order situation disrupted economic and business
activities. However, the interim government took swift measures to stabilize the situation. While the economic and social landscape
is showing signs of gradual improvement, full normalization remains a work in progress.
The interim government has undertaken several reform initiatives, including improving governance and strengthening control over
the banking and financial sectors. To address rising inflation, the central bank aggressively raised the policy from 8.5% in July 2024
to 10% in October 2024, resulting in a higher cost of borrowing.
In light of the prevailing macroeconomic conditions, global multilateral agencies have revised Bangladesh’s growth forecasts
downward with the World Bank projecting real GDP growth to decelerate to 4.0% in FY 2025.
The Industry Overview
Global pharma market is currently valued at US$ 1.6 trillion which is expected to reach US$ 2.3 trillion in 2028 with a CAGR of 5-8%.
Demographic shifts including ageing populations and evolving disease profiles, along with expanded access to advanced treatments
particularly in immunology, endocrinology and oncology, have largely contributed to rising demand for pharmaceuticals. The United
States still remains the largest pharma market with total spending at invoice prices reaching US$ 711 billion.
Global generic drugs market stood at US$ 350 billion in 2023 and will continue to expand as patented or brand drugs worth $192
billion will go off patent over the next 5 years with almost 30% due to patent expiry of key biologic drugs. Biologics still dominate
the list of blockbuster drugs with 8 of them being in the top 10. Currently oncology drug Keytruda is the top selling drug globally with
US$ 25 billion in annual sales.
The Bangladesh pharmaceutical market recorded a moderate growth of 7.2% in 2023-24, compared to an exceptional 15.3%
growth in the previous year, reaching BDT 32.87 billion as of 30 June 2024, up from BDT 30.66 billion in the prior year (source:
IQVIA). The industry’s four-year CAGR stands at 9%. This lower growth rate reflects the broader economic challenges of the year,
including persistent inflationary pressures, macroeconomic instability, and reduced GDP growth. These factors have posed significant
challenges for the pharmaceutical industry, and prolonged inflation, coupled with subdued economic conditions, may continue to
constrain market expansion in the coming year.
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108 | Statements and Reports | Annual Report 2023-24
Review of Operations
Sales and Profitability
Beximco Pharma concluded another year of excellent performance. The Company maintained its growth momentum, met the sales
and profit targets and achieved remarkable success in consistent pursuit of our strategic objectives. We secured and expanded our
domestic market at a pace ahead of the industry.
The Company continued to maintain its healthy double-digit growth in revenue achieving an impressive 13.1% overall growth reaching
BDT 44,391.6 million during the year 2023-24. Beximco Pharma on a standalone basis accounted for 83.1% of the consolidated
revenue, achieved a net sales of BDT 36,899.0 million as against BDT 32,991.9 million of prior year registering 11.8% YoY growth.
Sales in the domestic market, which remains the primary driver of our growth, registered a robust 12.3% increase propelled by the
continued double-digit growth of most of our top-performing brands, in line with our historical growth trajectory. Despite challenges,
exports increased by 6.7% to reach BDT 2,936.6 million.
Our subsidiary, Synovia Pharma, further solidified its market position with an outstanding 22.9% growth in revenue, reaching BDT
4,338.0 million. As you know, Synovia Pharma not only manufactures products locally but also imports finished formulations from the
Sanofi Group. Sales of locally manufactured products increased by 25.0%, while imported finished products saw a 23.5% growth,
underscoring its growing market presence. Additionally, revenue from toll manufacturing services rose by 9.9%.
Nuvista Pharma, another of our subsidiaries, achieved notable revenue growth of 14.7%, reaching BDT 3,478.2 million compared
to BDT 3,033.7 million in the prior year. Although small in absolute value, the company generated BDT 21.7 million from exports,
reflecting its ongoing efforts to establish a presence in the global market- a journey it embarked on for the first time in its history
during the 2021-22 fiscal year.
Along with robust sales growth, we delivered strong financial performance during the year. Our consolidated pre-tax profit reached
BDT 7,525.5 million, reflecting a notable 24.0% increase compared to the previous period. Similarly, Net Profit after Tax grew by an
impressive 29.7% to BDT 5,866.8 million. Further details and highlights are provided in the Report of the Directors.
Products and Markets
Our unwavering commitment to delivering high-quality, affordable healthcare solutions remains steadfast. This year, our top brands
delivered strong performances across key therapeutic areas, where we maintained market leadership in cardiovascular, respiratory,
and analgesic segments. We also performed well in other therapeutic categories, namely anti-histamine, musculoskeletal, anti-
diabetic and insulin.
We maintained our strategic focus on brand-building initiatives and expanding our product portfolio through new product launches.
During the year, we introduced 30 new generics in 42 presentations to the domestic market, with 12 of these being launched for the
first time in Bangladesh. Our subsidiary, Nuvista Pharma, contributed significantly by launching 20 products in 25 different strengths
and forms, while Synovia Pharma, our other subsidiary, introduced 11 products in 21 presentations in the domestic market.
We have further strengthened our global footprint through strategic partnerships and an increased number of product registrations
and approvals. During the fiscal year 2023-24, we successfully completed 37 new registrations for 31 products across 11 countries.
Notably, we received U.S. FDA approvals for two products: Hydroxyzine Pamoate capsules (an antihistamine) and Carbidopa tablets
(used for the treatment of Parkinson’s disease), bringing our total U.S. FDA-approved products to 18. Additionally, we secured
approvals from the Therapeutic Goods Administration (TGA) of Australia for two products: Mometasone nasal spray (a corticosteroid)
and Hyoscine Butylbromide tablets (an antispasmodic).
In terms of international launches, we introduced Flecainide tablets (50 mg, 100 mg, and 150 mg) and Nebivolol tablets (2.5 mg, 5
mg, 10 mg, and 20 mg) in the US market. Furthermore, we launched Ketorolac 10 mg tablets, our third oral solid dose (OSD) product,
in the Canadian market, reinforcing our presence in North America.
The United States remains our major export destination, contributing over 30% of our export revenue during the year. Additionally,
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Annual Report 2023-24 | Statements and Reports | 109
significant contributions to our export revenue came from markets such as South Africa, Sri Lanka, Australia, Kenya, Iraq, Myanmar,
Singapore, and Peru, reflecting our strong presence in diverse international markets.
Comparative Financial Performance, Position and Cashflows
Beximco Pharma and its Subsidiaries (Consolidated)
Amount in Million Taka
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19
Financial Performance
Net Revenue
44,391.6
39,266.7
34,669.2
29,493.6
25,611.9
22,816.6
Domestic
41,433.2
36,503.5
31,984.1
26,369.6
22,860.2
20,314.0
Export
2,958.4
2,763.2
2,685.1
3,124.0
2,751.8
2,502.6
Gross Profit
19,634.0
17,305.0
15,820.2
13,923.5
11,899.1
10,620.3
Profit from operations
8,674.4
7,216.2
6,881.7
6,650.8
5,609.5
5,066.2
Profit Before Tax
7,525.5
6,068.8
6,686.9
6,377.5
4,653.4
3,946.1
Profit After Tax
5,866.8
4,524.5
4,998.6
5,165.8
3,544.5
3,040.4
Earnings Per Share (EPS)-Taka
13.07
10.34
11.48
11.49
7.88
7.48
Financial Position
Total Assets
69,344.0
69,156.8
66,148.0
52,246.1
50,118.7
49,214.1
Total Liabilites
17,441.1
21,537.1
21,512.0
14,881.2
17,321.3
19,349.8
Paid up Capital
4,461.1
4,461.1
4,461.1
4,461.1
4,461.1
4,055.6
Net Assets
51,902.9
47,619.7
44,636.0
37,364.9
32,797.4
29,864.3
Equity Attributable to the owners
of the Company
47,950.0
43,680.7
40,600.5
37,030.6
32,495.0
29,588.3
Number of shares outstanding
446,112,089 446,112,089 446,112,089 446,112,089 446,112,089 405,556,445
Net Asset Value (NAV) Per Share
-Taka
107.48
97.91
91.01
83.01
80.12
72.96
Cash Flow
Net Cash Generated from
Operating Activities
8,364.5
6,084.8
5,214.2
6,023.3
5,542.5
2,959.9
Net Cash used in Investing
Activities
(2,406.5)
(2,617.0)
(7,680.1)
(2,524.7)
(1,946.9)
(4,510.0)
Net Cash from/(used in)
Financing Activities
(6,259.9)
(3,560.6)
2,615.2
(3,458.2)
(3,573.1)
1,766.6
Net Operating Cash Flow (NOCF)
Per Share-Taka
18.75
13.64
11.69
13.50
13.67
7.30
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110 | Statements and Reports | Annual Report 2023-24
Comparison with peer industry 2023-24
Comparative Consolidated Financials
Amount in Million Taka
Beximco Pharma
Square Pharma Renata Pharma
ACME Laboratories
Financial Performance
Net Revenue
44,391.6
70,101.0
37,708.8
31,931.6
Gross Profit
19,634.0
33,072.4
16,677.9
13,254.8
Profit from Operations
8,674.4
19,231.3
5,318.8
5,684.2
Profit Before Tax
7,525.5
22,721.8
4,495.9
3,203.7
Profit After Tax
5,866.8
20,927.4
3,615.8
2,456.2
Earnings Per Share (EPS)-Taka
13.07
23.61
31.53
11.61
Financial Position
Total Assets
69,344.0
132,637.2
56,721.6
55,622.2
Total Liabilites
17,441.1
6,715.6
22,822.1
30,570.3
Paid up Capital
4,461.1
8,864.5
1,147.0
2,116.0
Net Assets
51,902.9
125,921.6
33,899.5
25,051.8
Equity Attributable to the owners of the
Company
47,950.0
125,919.3
33,899.5
25,051.8
Number of shares outstanding
446,112,089
886,451,010
114,696,490
211,601,700
Net Asset Value (NAV) Per Share -Taka
107.48
142.05
295.56
118.39
Cash Flow
Net Cash Generated from Operating Activities
8,364.5
18,528.9
2,082.8
1,955.0
Net Cash Used in Investing Activities
(2,406.5)
(7,049.0)
(5,922.7)
(4,113.0)
Net Cash from/(used in) Financing Activities
(6,259.9)
(9,832.6)
2,481.4
2,454.7
Net Operating Cash Flow (NOCF) Per Share-Taka
18.75
20.90
18.16
9.24
Source: Annual Report 2023-24 of the respective companies
Awards and Accolades
We are delighted to share that we have been awarded the National Export Trophy (Gold) for a record ninth time in recognition of our
outstanding contribution to the country’s pharmaceutical exports during the year 2021-22. This prestigious accolade underscores our
unwavering commitment to global quality standards and regulatory compliance, which continue to drive our success in international
markets.
Beximco Pharma has been recognized as one of the top-performing companies in the pharmaceutical sector by winning the Bronze
award at the 14th ICMAB Best Corporate Award for its outstanding performance during the fiscal year 2022-23. Since 2007, the
Institute of Cost and Management Accountants of Bangladesh (ICMAB) has been honoring the country’s best-performing companies
with this prestigious award.
Our sustainable practices, green initiatives, and community development efforts showcase our commitment to a sustainable future.
The Company was honored with the Green Factory Award 2023 in the pharmaceutical category by the government, recognizing its
contributions to environmental protection and workplace safety.
Over our journey spanning more than four decades, Beximco Pharma has built a solid reputation rooted in its core values and
unwavering commitment to excellence. Quality and compliance remain the cornerstones of our success, supported by ongoing efforts
to optimize internal processes and enhance operational efficiency. Through our “Evolution” project, we nurture a culture of quality
improvement across all functions. This commitment earned our Quality Circle teams from Beximco Pharma, Synovia Pharma, and
Nuvista Pharma Gold Medals at the ICQCC-2024 in Colombo, Sri Lanka.
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Annual Report 2023-24 | Statements and Reports | 111
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 financial statements. Management has the discretion
to decide on the accounting policies within the financial reporting framework and make estimates and provisions in preparing those
financial statements. The Company’s accounting policies remain consistent with those of the previous year and there have been no
changes in the accounting policies that could materially impact the financial statements. The accounting estimates and provisions
are based on prudent judgments.
Risks Related to Financial Statements
The Company has a robust system of internal control and well-designed accounting reporting process. The Company’s accounting
and finance functions are manned with adequate experienced professionals. Appropriate policies and procedures, as well as adequate
review and control mechanisms are in place in every step of the financial reporting value chain to avoid, eliminate or reduce the risk
of errors, omissions or material misstatements in the financial reports. Moreover, quarterly and annual public reports are subject to
rigorous review by the Board’s Audit Committee in addition to the annual accounts being audited by independent external auditors.
Outlook
As we look ahead, the macroeconomic environment and political landscape present a complex backdrop for the new fiscal year.
With limited government investment in healthcare, the market remains heavily reliant on private spending, which depends on stable
income flows and equitable distribution. While economic expansion and broader income distribution have historically supported
demand, challenges such as high inflation, reduced purchasing power, foreign exchange reserve constraints, elevated interest rates,
and moderated economic growth exert pressure on the industry. Additionally, recent adjustments to salaries and wages, following
labor unrest, have further amplified cost pressures. These factors collectively underscore the evolving challenges within which the
industry must navigate.
Beximco Pharma has consistently demonstrated resilience in overcoming challenges and navigating complex business environments.
We rely on our ability to leverage our strengths to seize emerging opportunities and address industry challenges effectively. Our
strategic investments in research and development, global expansion, and innovative solutions position us to meet the evolving
healthcare needs of patients. A robust product pipeline remains at the core of our sustained growth strategy, especially in the
competitive generics landscape. Our strong foundation, experienced leadership, and dedicated workforce will continue to be the
driving force behind our growth and success.
Finally, I extend my heartfelt gratitude to our employees, customers, partners, and shareholders for their unwavering support and
trust. Together, we will overcome challenges and continue creating value for all our stakeholders.
Iqbal Ahmed
Managing Director
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112 | Statements and Reports | Annual Report 2023-24
Report of the Audit Committee
I am pleased to present the report of the Audit Committee of Beximco Pharmaceuticals Limited in compliance to the provisions
of the Corporate Governance Codes issued by Bangladesh Securities and Exchange Commission (BSEC). The Audit Committee of
Beximco Pharma as a sub-committee of the Board plays a vital role in effective discharge of the Board’s oversight responsibilities.
The Committee has distinct Terms of Reference (ToR) developed conforming to the Code of Corporate Governance which includes
but not confined to overseeing the financial reporting process, evaluating internal control system, reviewing significant related party
transactions, assessing potential conflict of interests, and reviewing the financial statements of the Company and its subsidiaries.
This report gives a brief on the activities performed by the Audit Committee throughout the year.
Meetings and Attendance
The Committee held four meetings to carry out its business during the period under review.
Date
Core Agenda
October 16, 2023
• To review Annual Audited Financial Statements of Beximco Pharma and its Subsidiaries for the fiscal
year 2022-23
• To approve the draft Report on the Activities of the Audit Committee to the shareholders for the
year 2022-23
November 02, 2023
To review 1st Quarter Financial Statements of Beximco Pharma and its Subsidiaries for the fiscal year
2023-24
January 25, 2024
To review 2nd Quarter Financial Statements of Beximco Pharma and its Subsidiaries for the fiscal year
2023-24
April 28, 2024
To review 3rd Quarter Financial Statements of Beximco Pharma and its Subsidiaries for the fiscal year
2023-24
The composition of the Audit Committee and the record of attendance by its members are as below:
Name
Representation in the Board
Position in the Committee
Attendance in Meeting
Prof. Mamtaz Uddin Ahmed
Independent Director
Chairman
4/4
Osman Kaiser Chowdhury
Director
Member
4/4
Reem H. Shamsuddoha
Director
Member
4/4
Mohammad Asad Ullah, FCS
Company Secretary
Secretary
4/4
Review of Financial Statements
The Audit Committee reviewed the annual audited financial statements of the Company for the year 2023-24 in its meeting held on
October 24, 2024. The annual financial reports of the subsidiary companies, namely Nuvista Pharma Limited, Synovia Pharma PLC
and Beximco Pharma API Limited, were also placed for review and approval of the Committee during the meeting. Mr. Mohammad
Ali Nawaz, the Chief Financial Officer (CFO) of the Company presented the annual accounts along with the independent auditor’s
report. The Committee had detailed discussion with the representative of the management on different aspects of the financial
statements particularly on compliance with IFRS/IAS, adequacy of disclosures made, consistency of the accounting policies applied
and prudence of the estimates and judgements made in preparation of the financial statements. The Committee evaluated the report
of the independent auditor on the annual financial statements and found no material audit observation.
Besides the review of annual audited financials, the Committee met on three other occasions to review the interim un-audited financial
statements of the Company and its subsidiaries. They carried out in-depth review of each of the quarterly financial statements with
due care to ensure that the financial statements give a true and fair view of the state of affairs of the Company and are free from any
material errors. During the evaluation process, relevant queries were raised and explanations were sought from the management on
the reported numbers and adequacy of the information disclosed in the financial statements. The Committee, where applicable, gave
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Annual Report 2023-24 | Statements and Reports | 113
necessary feedback and guidance. In each case, the Committee being satisfied authorized for onward submission of the financial
reports for the approval of the board.
Review of Significant Related Party Transactions of the Company
The Committee during its meetings thoroughly reviewed the significant related party transactions conducted between the Company
and its related entities, including subsidiaries. The Committee concluded that these transactions were conducted on an arm’s length
basis in the ordinary course of business and have been properly disclosed in the financial statements in accordance with IAS 24:
Related Party Disclosures.
Appointment of Statutory Auditors of the Company
The Audit Committee reviewed the matter of appointment of auditors for the financial year 2024-25. It was informed that the existing
auditors M.J. Abedin & Co, Chartered Accountants, who carried out the audit of the Company for the year ended June 30, 2024, did
not express their willingness for the reappointment as auditors of the Company for the year 2024-25.
The Committee was further informed that expression of interest has been received from MABS & J Partners, Chartered Accountants,
for the appointment as the auditors of the Company for the financial year 2024-25. The detailed profile of MABS & J Partners was
presented to the Committee. An in-depth review was conducted considering legal and regulatory requirements, independence,
expertise, qualifications, experience, and the human and technical strength of the audit firm, among other factors. After careful
evaluation, the Committee was satisfied with the suitability of MABS & J Partners and decided to recommend to the board for their
appointment as Statutory Auditors of the Company for the year 2024-25. The Committee also expressed its appreciation for the
professional services rendered by M. J. Abedin & Co. during their tenure as auditors of the Company.
Other Reviews and Activities
The Committee approved the draft Report of Activities of the Audit Committee for the fiscal year 2023-24. Furthermore, during its
meetings, the Committee reviewed the Company’s financial reporting process and assessed the adequacy of its internal control
system, finding both to be satisfactory. It was noted that the internal audit team has full, free, and unrestricted access to all activities,
records, and property. Additionally, the Committee recognized that the internal audit and compliance team is staffed with experienced
and professionally qualified personnel.
The Committee noted no material deviations or non-compliance or adverse audit finding that calls for board or shareholders’ attention
during the year under review.
Mamtaz Uddin Ahmed
Chairman
Audit Committee
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114 | Statements and Reports | Annual Report 2023-24
The Nomination and Remuneration Committee (NRC) is one of two sub-committees under the Board, formed to comply with the
Corporate Governance Code issued by the 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
There has been a change in the composition of the Committee during the period under review. Mr. Iqbal Ahmed, a Director and
Member of the Nomination and Remuneration Committee, was appointed as the Managing Director of the Company on March 3,
2024. Following this appointment, the Board appointed Ms. Reem H. Shamsuddoha in place of Mr. Ahmed, as a Member of the
Committee. The current composition of the NRC is follows:
Name
Representation in the Board
Position in the Committee
Dr. Md. Ibraheem Hosein Khan
Independent Director
Chairman
Osman Kaiser Chowdhury
Director
Member
Reem H. Shamsuddoha
Director
Member
Mohammad Asad Ullah, FCS
Company Secretary
Secretary
Meetings
The Committee held three meetings to carry out its business during the financial year 2023-24.
Date
Key Agenda
June 26, 2024
• To consider re-appointment of retiring Directors
• To discuss annual appraisal and Compensation for the fiscal year 2023-24
• To review training activities and policies
February 28, 2024
To recommend for appointment of Managing Director
January 01, 2024
To consider the re-appointment of Independent Director
Attendance
The record of attendance of the Members of the Committee were as follows;
Name/ Meeting Date
Jun 26, 2024
Feb 28, 2024
Jan 1, 2024
Attendance
Dr. Md. Ibraheem Hosein Khan
Yes
Yes
Yes
Osman Kaiser Chowdhury
Yes
Yes
Yes
Reem H. Shamsuddoha
Absent
N/A
N/A
Iqbal Ahmed
N/A
Yes
Yes
Mohammad Asad Ullah, FCS
Yes
Yes
Yes
Besides the Committee Members, the representatives of the management including the CFO attended different meeting of the
Committee
Summary of Activities of NRC
Review and recommend the re-appointment of Independent Director and Retiring Directors
The meeting held on on January 01, 2024 dealt with the issue of re-appointment of the Independent Director Dr. Md. Ibraheem
Hosein Khan. It was informed that Mr. Khan, who has been serving as an Independent Director in the board, would complete his first
Report on the Activities of Nomination and
Remuneration Committee (NRC)
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Annual Report 2023-24 | Statements and Reports | 115
term of three years on January 16, 2024. As per the provisions of Corporate Governance Code issued by Bangladesh Securities and
Exchange Commission, he is eligible for reappointment as Independent Director of the Company for a further term of three years. The
Committee after review expressed its satisfaction about the contribution of Mr. Khan and recommended to the Board of Directors for
his reappointment as an Independent Director of the Company.
The Committee in a separate meeting held in June 26, considered the re-appointment of Mr. Osman Kaiser Chowdhury and Ms.
Quamrun Naher Ahmed, Directors of the Company, who would retire by rotation as per Articles 126 and 127 of the Articles of
Association of the Company. Both of them being eligible, offer themselves for re-election. The Committee, after discussion, decided
to recommend the Board for the consideration of their re-election.
Appointment of Managing Director
The Committee had its second meeting on February 28, 2024 to consider the appointment of Mr. Iqbal Ahmed, a Director of the
Board as new Managing Director of the Company. The Committee was informed that Mr. Nazmul Hassan, who has been serving as
Managing Director of the Company, resigned from his position on January 11, 2024. The Committee reviewed profile, experience
and other qualification of Mr. Iqbal Ahmed and recommended for his appointment as Managing Director for the period of five years
with a recommendation for a remuneration package befitting his qualifications and experience. The Committee also advised Mr. Iqbal
Ahmed to resign from the Nomination and Remuneration Committee with effect from his being appointed as Managing Director of
the Company to comply with the Corporate Governance Code. The Committee proposed to the Board to nominate a replacement of
Mr. Ahmed in the NRC.
Other Review and Activities
As in the past, NRC during the fiscal year, reviewed Beximco Pharma’s annual appraisal process and employee compensation policy.
The representative from the Human Resource department briefed the annual employee appraisal framework of the Company and
highlighted the key factors of the appraisal process. The Committee provided guidance to the management on the appraisal and
salary adjustments issues, taking into consideration the inflation factors and competitive market situation.
Additionally, the Committee was briefed on the extensive training and development initiatives carried out throughout the year across
the organization. The multidisciplinary trainings conducted online and offline included soft skills development, leadership excellence,
sales skills, manufacturing excellence and improvement in process and system and continuous improvement through QCC.
Nomination and Remuneration Policy
The Company has a written policy on nomination and appointment of Directors in the Board. The policy sets out the detail qualification
and other eligibility norms for the Members and the process of their nomination, which is rightly aligned with the Corporate Governance
Code of Bangladesh Securities and Exchange Commission.
While Directors, as per Bangladesh Companies Act, are to be elected by the shareholders in the annual general meeting, the Board
of Directors makes the recommendation for appointment or re-appointment of Directors. NRC plays an important role in assisting the
Board to identify persons fitting the qualifying criteria as a Director. The Person (s) identified for the proposed appointment as director
is evaluated in terms of the requirements laid down in prevailing legislation; specific regulations applicable to the public listed
companies both in Bangladesh and the United Kingdom; the Bylaws and the policies of the Company. NRC makes an independent
evaluation of his/her experience, capability and competence to make a meaningful contribution as a Board member to achieve
Company’s mission and goals.
Additionally, to comply with the regulations of the Alternative Investment Market (AIM) of London Stock Exchange, a clearance from
the Company’s Nominated Advisor (NOMAD) is required before the appointment of any director, including the Independent Director.
NOMAD conducts independent third party verification of the eligible candidates before their appointment as Directors.
The Company shall appoint adequate number of directors, including independent directors, and shall endeavor to nominate or appoint
directors from diversified fields of experience and specialties. From the perspective of gender diversity, preference shall be given
to the female candidates where male and female are found equally qualified for the membership of the Board. The Company does
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116 | Statements and Reports | Annual Report 2023-24
not make any discrimination in terms of religion, faith, color, gender or nationality while considering the appointment as a Director.
All the Directors of the Board except the Managing Director are non-executive. The Company pays no remuneration to them other
than the fees for attending the Board and other committee meetings.
The Company has a well-structured policy on selection, recruitment and promotion of the senior level executives. The Managing
Director and all other top-level executives get a fixed monthly salary and allowances as per terms of their service contracts. The
Company has a robust performance appraisal system linked to KPI. Performances are reviewed on an annual basis. Further details
on the remuneration policy are available in the report of Directors.
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Annual Report 2023-24 | Statements and Reports | 117
Investor Relations
Communication with Shareholders and Investors
Beximco Pharma is committed to ensuring that investors are well-informed about the company’s operational and financial performance,
as well as other critical aspects that influence their investment decisions. The company adheres to all relevant laws and regulations
governing shareholder rights, which outline the methods, timing, and channels for disseminating information. Shareholders receive
regular updates through financial reports, disclosures of price-sensitive information, and interactions with the company’s senior
management. Information is disseminated promptly via stock exchanges, the company’s website, and, where appropriate, through
print and online media.
The Annual General Meeting (AGM) is conducted in compliance with the Companies Act, 1994, offering shareholders a detailed
overview of the company’s affairs and addressing specific agenda items requiring their approval. This year, as in the previous year,
the AGM will be held virtually through a digital platform, enabling greater participation. Extraordinary General Meetings (EGMs) are
convened when necessary, providing a platform for board members and senior management to engage with shareholders and
address their concerns.
Beximco Pharma actively engages with both local and international investors to keep them informed about the company’s performance
and future outlook. Senior management holds meetings with international investors, fund managers, and analysts to provide updates
on the business, with most interactions during the year conducted online. These engagements ensure that stakeholders have a clear
understanding of the company’s strategic direction and market prospects.
The company has a dedicated Company Secretarial Department staffed with qualified professionals to manage regulatory secretarial
functions and address shareholder inquiries. Additionally, an investor relations team within the accounting and finance function
supports investors, regulators, and other stakeholders with timely and accurate information.
As the only Bangladeshi company listed on the Alternative Investment Market (AIM) of the London Stock Exchange, Beximco Pharma
ensures strict compliance with AIM regulations. It has appointed SPARK Advisory Partners Limited as its Nominated Advisor (NOMAD),
SP Angel Corporate Finance LLP as its designated Broker, and FTI Consulting LLP as its public relations agent. Analysts from SP Angel
publish reports on the company to support informed decision-making by investors.
Through rigorous compliance with regulatory requirements and a strong focus on transparency, Beximco Pharma reinforces its
commitment to maintaining robust shareholder and investor relationships.
Reporting to the Shareholders
The Company provides financial updates periodically throughout the year. Unaudited financial statements are issued for the first
three quarters, offering a preliminary view of its performance, while audited financial statements are released at the end of the fiscal
year. In compliance with legal requirements, these statements are disseminated through stock exchanges and made available in
summarized versions via newspapers and online platforms. The Company also publishes a comprehensive annual report, detailing
its operations, financial performance, and key disclosures. All reports and statements are readily accessible to stakeholders on the
Company’s official website, ensuring transparency and ease of access.
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118 | Statements and Reports | Annual Report 2023-24
Q1
Q2
Q3
Full
Year
Un-audited
Un-audited
Un-audited
Audited
Annual
Report
November
January
April
October
www.beximcopharma.com/investors
Financial Reports and Reporting Calendar
Latest timing of release of the financial statements are:
Website Communication
The Company maintains a robust online presence through its website, www.beximcopharma.com, which serves as a comprehensive
repository of historical and up-to-date information about its operations. Designed to meet the diverse information needs of
stakeholders, the website is regularly updated to ensure the accuracy and relevance of its content.
The investor relations section of the website has recently been revamped to enhance user experience. The updated layout provides
easy access to the latest information, enabling stakeholders to navigate the site effortlessly and extract relevant data efficiently.
In addition to the extensive resources available on the website, the Company fosters an environment of transparency and open
communication by inviting stakeholders to engage directly. Contact information is prominently provided, offering users a direct
channel for additional information or personalized assistance.
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REPORTS
Annual Report 2023-24 | Statements and Reports | 119
Five Year Dividend History
* Included 10% Stock Dividend in 2019-20
Stock Market Performance
30 June 2024
30 June 2023
30 June 2022
30 June 2021
30 June 2020
Share Price- Dhaka
BDT 118.10
BDT 146.2
BDT 154.6
BDT 177.3
BDT 69.2
Share Price- AIM
GBP 0.39
GBP 0.355
GBP 0.705
GBP 0.860
GBP 0.355
Market Capitalization-Dhaka Price
BDT 52.69 bn
BDT 65.22 bn
BDT 68.9bn
BDT 79.1bn
BDT 28.1bn
EPS- Taka
13.07
10.34
11.48
11.49
7.88
P/E Ratio (Dhaka Price)
9.04
14.13
13.5
15.4
8.8
Dividend
40% (Proposed)
35%
35%
35%
25%
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
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Cash Dividend
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Custodian
HSBC
Level 4, Shanta Western Tower
186 Bir Uttam Mir Shawkat Ali Road
Tejgaon Industrial Area Dhaka- 1208, Bangladesh
Broker
SP Angel Corporate Finance LLP
Prince Frederick House 35-39 Maddox Street
London W1S 2PP, United Kingdom
Depositary
The Bank of New York Mellon
240 Greenwich Street, 22W New York
NY 10286- USA
STATEMENTS AND
REPORTS
120 | Statements and Reports | Annual Report 2023-24
Dividend Policy Statement
Introduction
Bangladesh Securities and Exchange Commission (BSEC) through a Directive, made it mandatory for a listed company to formulate its
Dividend Distribution Policy and disclose the policy in the company’s annual report and official website. In compliance to this directive,
Beximco Pharmaceuticals Limited (“Beximco Pharma” or the “Company”) publishes this statement as a guiding framework for the
shareholders with regards to the Company’s Dividend Policy.
This statement provides a brief outline of the legal and regulatory provisions relating to dividend, key issues in dividend considerations
and the procedure for the declaration, approval and payment of dividend.
Relevant Laws and Regulations
Different legal and regulatory provisions have bearings on dividend decisions of the Company. The paragraphs below provide a brief
overview of the provisions relating to dividend:
Companies Act
The Companies Act 1994, the primary legislation regulating the affairs of a company, gives power to the directors to recommend
the dividend to be declared by the company which is to be approved by the shareholders in the Annual General Meeting (AGM). The
shareholders however, cannot approve any dividend more than what has been recommended by the directors. It also authorizes the
directors to pay from time to time, interim dividends to the shareholders if so appears to be justified by the profits of the company. The
directors may, before recommending any dividend, set aside out of the profits of the company, such sums as they deem appropriate,
as reserve or reserves which shall at the discretion of the directors, be applied for meeting contingencies, or for equalizing dividends
or for any other purpose of the company appropriate for utilization of such profits or may employ such profits in the business of the
company or otherwise as they think fit.
The law further provides that dividends are to be paid out of profits of the year or any other undistributed profits.
Listing Regulations of Stock Exchanges
There has been a number of listing regulations that have direct or indirect impact on dividend decisions of the company. Shares of a
company is traded under different trading categories depending on payment or non-payment of dividend by a company. According to
the regulations, a company shall be traded in the “Z Category” (a category with a longer trading settlement time and other restrictive
conditions) if it fails to declare cash dividend for two consecutive years. Moreover, a company may among other reasons, be de-listed
from the stock exchange if it fails to pay cash/stock dividend for a consecutive period of five years. The listing regulations also require
a company to declare in its annual general meeting the reasons, if any for partial or non-distribution of profits as dividend and the
plan for utilization of the undistributed profits if there be any.
Income Tax Law
Bangladesh Income Tax law, provides for additional tax charges to a listed company that retains more than 70% of its net after- tax
profit earned in any year. According to the said provision if a company retains or transfers more than 70% of its after tax profit
to reserve or any other fund, an additional 10% tax shall be payable on such retained or transferred fund. Moreover, in order to
encourage cash dividend, the tax law requires that if in any income year, the stock dividend declared by a company exceeds the cash
dividend, an additional 10% tax shall be imposed on the whole amount of stock dividend declared or distributed.
Key Considerations in dividend decisions
The company shall endeavour to maintain a consistent dividend over the year with appropriate consideration of factors relevant to
such decisions. It is the Company’s practice to declare dividend on annual basis based on annual financial performance. However,
the Board may also declare interim dividend based on periodic financial results. Historically the Company declared dividend in either
cash or stock or in judicious combination of cash and stock. The company intends to pursue the same policy in future depending on
the operating and financial context prevailing at that time.
Multiple internal and external factors might affect Company’s dividend decisions. While recommending dividend the Board of directors
shall consider among others:
STATEMENTS AND
REPORTS
Annual Report 2023-24 | Statements and Reports | 121
• 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.
STATEMENTS AND
REPORTS
122 | Statements and Reports | Annual Report 2023-24
The 47th Annual General Meeting of the shareholders of Beximco Pharmaceuticals Limited held under virtual
platform on December 28, 2023.
Snapshots of 47th Annual General Meeting (Held on virtual platform)
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 123
AUDITED FINANCIALS
Consolidated Financial Statements
Beximco Pharma and its Subsidiaries
For the year ended June 30, 2024
124
147
182
208
235
Financial Statements
Beximco Pharmaceuticals Limited
For the year ended June 30, 2024
Financial Statements
Nuvista Pharma Limited
For the year ended June 30, 2024
Financial Statements
Synovia Pharma PLC
For the year ended June 30, 2024
Financial Statements
Beximco Pharma API Limited
For the year ended June 30, 2024
AUDITED FINANCIALS
124 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Consolidated Financial Statements
Beximco Pharma and its Subsidiaries
For the year ended June 30, 2024
124 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 125
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, 2024 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 28, 2024. The Financial Statements of Nuvista Pharma Limited and Synovia Pharma PLC were
audited by A. Qasem & Co. Chartered Accountants, who through their report dated October 20, 2024 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, 2024, 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 (PPE)
The carrying value of the PPE was Tk. 42,487,710,980 as at June
30, 2024.
Expenditures are capitalized if they create new assets or enhance
the existing assets, and expensed if they relate to repair or
maintenance of the assets.
Classification of the expenditures involves judgment. The useful
lives of PPE items are based on management’s estimates regarding
the period during which the assets or its significant components
will be used. The estimates are based on historical experience and
market practice and take into consideration the physical condition
of the assets.
The valuation of PPE was identified as a key audit matter due
to the significance of this balance to the consolidated financial
statements and that there is significant measurement uncertainty
involved in this valuation.
See Note No. 4 to the consolidated financial statements
Our audit included the following procedure:
• We assessed whether the accounting policies in relation to the
capitalization of expenditures are in compliance with IFRS and
found them to be consistent.
• We inspected a sample of invoices and L/C documents to
determine whether the classification between capital and
revenue expenditure was appropriate.
• We evaluated whether the useful lives determined and applied
by the management were in line with historical experience and
the market practice.
•
We checked whether the depreciation of PPE items was
commenced timely, by comparing the date of the reclassification
from capital work in progress to ready for use, with the date of
the act of completion of the work.
AUDITED FINANCIALS
126 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Risk
Our response to the risk
Valuation of Inventory
Revenue recognition
The Company reported total revenue of Tk. 44,391,603,925.
Revenue is measured net of returns and allowances, rebates,
trade discount and VAT imposed on the Company’s sales. The
risk of revenue misstatement arises from the incorrect timing
of revenue recognition and the recording of fictitious revenue.
There is also a risk that revenue may be overstated through
manipulation of the return, allowance, discounts and rebates
recognised resulting from the pressure management may feel to
achieve performance targets.
The company engages in substantial intercompany transactions.
These transactions present a risk that intercompany revenues
might not be fully eliminated in the consolidated financial
statements, potentially resulting in an overstatement of revenue.
See Note No. 22 to the financial statements
We evaluated and tested the design and operating effectiveness
of key controls focusing on the following:
• Authorization and segregation of duties for invoice creation and
modification
• Pricing controls and contract management
• Basis of allowance, rebates, and discounts;
• Calculation of VAT;
• Timing of revenue recognition;
• Completeness and accuracy of recorded Revenue
Our substantive procedures in relation to the revenue recognition
comprises the following:
• Obtaining supporting documentation for sales transactions
recorded either side of year- end as well as credit notes issued
after the year end date to determine whether revenue was
recognised in the correct period;
• Reviewed and examined the details of significant intercompany
transactions to confirm that they were accurately recorded and
properly eliminated during the consolidation process.
• Tested whether revenue was recognized only when performance
obligations were satisfied, and control of goods or services
transferred to customers;
•
Critically assessing the treatment of sales returns and
allowances to ensure accurate adjustments to revenue.
•
Finally assessed the appropriateness and presentation of
disclosures against relevant accounting standards.
Based on our testing, no material issues were identified with
respect to revenue recognition. The financial statements
appropriately reflect revenue in accordance with the applicable
standards.
The inventory of Tk. 12,118,129,675 as at June 30, 2024 was
held at different locations across the country.
Inventories are carried at the lower of cost and net realizable
value. As a result, the management apply judgment in
determining the appropriate values for slow-moving or obsolete
items.
Since the value of Inventory is significant to the 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.
We verified the appropriateness of management’s assumptions
applied in calculating the value of the inventory by:
• Evaluating the design and implementation of key inventory
controls.
• Attending inventory counts on sample basis and reconciling the
count results to the inventory listing to test the completeness
of data.
• Reviewing the requirement of inventory provisioning and action
there upon by the management.
• Comparing the net realizable value obtained through a detailed
review of sales subsequent to the year-end, to the cost price of
a sample of inventories.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 127
Risk
Our response to the risk
Related party transactions
The Company has related party transactions as described in Note
No. 36 of the Consolidated Financial Statements.
We focused on identification of related parties and disclosure of
related party transactions in accordance with relevant accounting
standards.
Our audit procedures amongst others included the following:
• Evaluated the design and tested the operating effectiveness
of controls over identification and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and tested
material accounts balances.
•
Evaluated the disclosures in the Consolidated financial
statements in compliance with IAS 24.
Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the
consolidated financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this
auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it
becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on such work we perform, we conclude that there is a material misstatement of this other information, we are required to communicate
the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the consolidated Financial Statements
and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Company in accordance with
IFRSs, The Companies Act 1994, The Securities and Exchange Rules 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.
AUDITED FINANCIALS
128 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
• 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.
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 28, 2024
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 129
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated statement of financial position
As at June 30, 2024
Amount in Taka
Notes
June 30, 2024
June 30, 2023
ASSETS
Non-current assets
48,526,438,704
48,280,929,007
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax asset
Goodwill
Other investments
4
4( a )
5
6
7
42,487,710,980
561,596,784
4,720,696,879
60,890,504
674,570,185
20,973,372
42,245,615,338
562,223,398
4,721,034,633
56,512,081
674,570,185
20,973,372
Current assets
20,817,583,936
20,875,854,240
Inventories
Spares and supplies
Trade and other receivables
Loans, advances, deposits and prepayments
Advance income tax
Short term investment
Cash and cash equivalents
8
9
10
11
12
12,118,129,675
896,665,035
3,767,318,667
2,686,194,995
295,169,915
200,000,000
854,105,649
12,122,951,901
830,066,429
3,585,612,270
2,973,919,074
227,618,388
-
1,135,686,178
TOTAL ASSETS
69,344,022,640
69,156,783,247
EQUITY AND LIABILITIES
Equity attributable to the owners of the company
47,949,964,744
43,680,703,738
Share capital
Share premium
Excess of issue price over face value of GDRs
Capital reserve on merger
Revaluation surplus
Unrealized gain/(loss)
Retained earnings
13
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,137,305,789
18,148,196
35,079,327,271
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
Non-controlling interest
14
3,952,938,136
3,938,962,240
TOTAL EQUITY
51,902,902,880
47,619,665,978
Non-current liabilities
7,879,133,404
8,272,093,233
Long term borrowings-net of current maturity
Liability for gratuity, pension and WPPF
Deferred tax liability
15
16
1,757,971,294
3,546,580,069
2,574,582,041
2,550,833,254
3,170,764,435
2,550,495,544
Current liabilities
9,561,986,356
13,265,024,036
Short term borrowings
Long term borrowings-current maturity
Trade and other payables
Accrued expenses
Dividend payable
Income tax payable
17
18
19
20
21
2,996,659,963
1,270,799,475
3,671,371,549
1,106,664,942
87,223,073
429,267,354
6,621,170,271
1,439,895,168
3,531,707,176
1,129,699,385
88,465,109
454,086,927
TOTAL EQUITY AND LIABILITIES
69,344,022,640
69,156,783,247
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
AUDITED FINANCIALS
130 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated statement of profit or loss and other comprehensive income
For the year ended June 30, 2024
Amount in Taka
Notes
July 2023- June 2024
July 2022- June 2023
Net revenue
Cost of goods sold
22
23
44,391,603,925
(24,757,616,704)
39,266,662,237
(21,961,699,502)
Gross profit
19,633,987,221
17,304,962,735
Operating expenses
General and administrative expenses
Selling, marketing and distribution expenses
26
27
(10,959,616,258)
(1,309,760,618)
(9,649,855,640)
(10,088,722,772)
(1,171,715,379)
(8,917,007,393)
Profit from operations
8,674,370,963
7,216,239,963
Other income
Finance cost
Profit before tax and WPPF
Contribution to WPPF
28
29
394,587,584
(1,159,702,167)
7,909,256,380
(383,780,467)
452,657,744
(1,285,698,253)
6,383,199,454
(314,430,512)
Profit before tax
7,525,475,913
6,068,768,942
Income tax expenses
Current tax
Deferred tax income/ (expense)
Profit after tax
30
(1,658,704,443)
(1,637,872,251)
(20,832,192)
5,866,771,470
(1,544,300,452)
(1,468,598,852)
(75,701,600)
4,524,468,490
Profit/(loss) attributable to:
Owners of the Company
Non-controlling interest
5,829,529,200
37,242,270
4,614,066,147
(89,597,657)
5,866,771,470
4,524,468,490
Other comprehensive income/(loss)
31
-
(2,383,527)
Total comprehensive income
5,866,771,470
4,522,084,963
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interest
5,829,529,200
37,242,270
4,611,682,620
(89,597,657)
5,866,771,470
4,522,084,963
Earnings per share (EPS)
32
13.07
10.34
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 131
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated statement of changes in equity
For the year ended June 30, 2024
Amount in Taka
For the year ended June 30, 2024
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, 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
Total comprehensive income:
Profit for the year
-
-
-
-
-
-
5,829,529,200
5,829,529,200
37,242,270
5,866,771,470
Transactions with the shareholders:
Cash dividend
(1,561,392,312)
(1,561,392,312)
(23,266,374)
(1,584,658,686)
Others:
Adjustment for depreciation on revalued
assets
-
-
-
-
(4,996,084)
-
4,996,084
-
-
-
Adjustment for deferred Tax on revalued
assets
-
-
-
-
1,124,118
-
-
1,124,118
-
1,124,118
Balance as on June 30, 2024
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,137,305,789
18,148,196
35,079,327,271
47,949,964,744
3,952,938,136
51,902,902,880
Net asset value (NAV) per share (Note-33)
Tk.
107.48
For the year ended June 30, 2023
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
-
-
-
-
-
-
4,614,066,147
4,614,066,147
(89,597,657)
4,524,468,490
Other comprehensive income/(Loss)
-
-
-
-
-
(2,383,527)
-
(2,383,527)
-
(2,383,527)
Transfer from deferred tax
28,647,841
28,647,841
28,647,841
Transactions with the shareholders:
Cash dividend
(1,561,392,312)
(1,561,392,312)
(6,946,744)
(1,568,339,056)
Others:
Adjustment for depreciation on revalued
assets
-
-
-
-
(5,634,546)
-
5,634,546
-
-
-
Adjustment for deferred Tax on revalued
assets
-
-
-
-
1,267,772
-
-
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)
Tk.
97.91
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
AUDITED FINANCIALS
132 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Beximco Pharmaceuticals Limited and its Subsidiaries
Consolidated statement of cash flows
For the year ended June 30, 2024
Amount in Taka
Notes
July 2023-June 2024
July 2022-June 2023
Cash flows from operating activities :
Cash receipts from customers and others
44,643,302,227
39,440,236,428
Cash paid to suppliers and employees
(33,402,026,973)
(30,943,666,211)
Cash generated from operations
11,241,275,254
8,496,570,217
Interest paid
(1,149,361,253)
(1,272,368,534)
Interest received
2,795,667
5,529,516
Income tax paid
(1,730,243,351)
(1,144,944,341)
Net cash generated from operating activities
35
8,364,466,317
6,084,786,858
Cash flows from investing activities :
Acquisition of property, plant and equipment
(1,993,729,774)
(2,410,765,411)
Intangible assets
(240,827,549)
(299,262,244)
Disposal of property, plant and equipment
26,956,352
23,353,504
Disposal of intangible assets
-
67,725,000
Dividend received
1,142,364
1,931,517
Short term investment
(200,000,000)
-
Net cash used in investing activities
(2,406,458,607)
(2,617,017,634)
Cash flows from financing activities :
Net increase /(decrease) in long term borrowings
(1,049,462,507)
(1,763,267,386)
Net increase/(decrease) in short term borrowings
(3,624,510,308)
(229,380,048)
Dividend paid
(1,585,900,722)
(1,567,923,375)
Net cash from/(used in) financing activities
(6,259,873,537)
(3,560,570,809)
Increase/(decrease) in cash and cash equivalents
(301,865,827)
(92,801,585)
Opening cash and cash equivalents
1,135,686,178
1,168,673,821
Effect of exchange rate changes on cash and cash equivalents
35
20,285,298
59,813,942
Closing cash and cash equivalents
12
854,105,649
1,135,686,178
Net operating cash flow per share
34
18.75
13.64
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : N/A
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 133
Beximco Pharmaceuticals Limited and its Subsidiaries
Notes to the financial statements
As at and for the year ended June 30, 2024
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 took over 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), a market operated and regulated by 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. Government of Bangladesh holds 12.9% shares of the company. 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 in Bangladesh, while its GDRs are traded on the AIM of the London Stock Exchange.
The corporate headquarters of Beximco Pharma is based in Dhaka. The industrial units are located at Tongi and Kaliakoir of Gazipur district
– vicinities close to the capital city Dhaka. The manufacturing facilities of the Company are certified by leading global regulatory authorities
including United States Food and Drug Administration (USFDA).
1.2 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.
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. 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.
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. It also
imports certain global brands of Sanofi including vaccines, insulins and chemotherapy drugs for sale in Bangladesh market. SPP produces
approximately 100 branded generic products predominantly for the local market.
NPL and SPP also provide contract manufacturing services.
2. Basis of preparation of financial statements
2.1 Statement of compliance
The financial statements have been prepared in compliance with the requirements of the Companies Act 1994, the Securities & Exchange Rules
2020, the Listing Regulations of Dhaka and Chittagong Stock Exchanges and other relevant local laws as applicable and in accordance with the
International Financial Reporting Standards (IFRSs).
AUDITED FINANCIALS
134 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
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
The Financial statements cover 12 months’ period starting from July 1, 2023 to June 30, 2024.
2.4 Comparative Information
The last audited financial statements were prepared for the year ending June 30, 2023. Figures for earlier year have been re-arranged wherever
considered necessary to ensure better comparability with the current year.
2.5. Authorization for issue
The consolidated financial statements have been authorized for issue by the Board of Directors on October 28, 2024.
2.6. Functional and presentation currency
The consolidated 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.
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 holds 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 (Unaudited) as on 30 June 2024 exceeds its investment by an amount of Tk.
35,353,614. 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.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 135
4. Property, plant and equipment
As on June 30, 2024
Amount in Taka
Particulars
Land
Building
and other
constructions
Plant
and
machinery
Furniture
and
fixtures
Transport
and
vehicle
Office
equipment
Total
property plant
&
equipment
Cost
As on July 01, 2023
7,892,408,445
16,703,778,777
28,865,279,556
814,679,390
968,085,139
1,084,527,252
56,328,758,559
Additions
-
114,003,586
236,509,663 105,385,516
49,963,032
32,617,729
538,479,526
Transferred in & Capitalized
-
188,349,307
999,305,407
54,685,022
3,525,000
6,332,697
1,252,197,433
Transferred from Right-of-use Assets
-
-
-
-
93,762,814
-
93,762,814
Disposal during the Year
-
(1,419,256)
(33,550,442)
-
(58,119,390)
(3,654,282)
(96,743,370)
Cost as on June 30, 2024
7,892,408,445
17,004,712,414
30,067,544,184
974,749,928
1,057,216,595
1,119,823,396
58,116,454,962
Accumulated depreciation
As on July 01, 2023
-
3,785,641,457
10,336,310,444
287,076,509
812,426,601
708,752,323
15,930,207,334
Depreciation charged
-
375,665,098
1,167,417,874
51,772,799
48,006,961
72,910,488
1,715,773,220
Fair value depreciation
-
5,723,364
19,452,060
-
-
-
25,175,424
Transferred from right-of-use assets
-
-
-
-
76,083,085
-
76,083,085
Adjustment for assets disposed off
-
(648,886)
(30,047,359)
-
(51,862,228)
(3,604,066)
(86,162,539)
Adjustment for depreciation method uniformity
(15,715,685)
(51,589,548)
(3,997,648)
(9,709,650)
(13,271,983)
(94,284,514)
Accumulated depreciation as on June 30, 2024
-
4,150,665,348
11,441,543,471 334,851,660
874,944,769
764,786,762 17,566,792,010
Net book value June 30, 2024
7,892,408,445
12,854,047,066
18,626,000,713 639,898,268
182,271,826
355,036,634 40,549,662,952
Capital work in progress
1,938,048,028
Carrying value as on June 30, 2024
42,487,710,980
Carrying value as on June 30, 2023
42,245,615,338
AUDITED FINANCIALS
136 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
4 (a) . Right of use assets
As on June 30, 2024
Amount in Taka
Particulars
Building
Vehicle
Total right-of-use
assets
Cost
As on July 01, 2023
114,163,530
751,202,299
865,365,829
Additions
-
112,929,600
112,929,600
Transferred to freehold assets
-
(93,762,814)
(93,762,814)
Cost as on June 30, 2024
114,163,530
770,369,085
884,532,615
Accumulated depreciation
As on July 01, 2023
8,794,837
294,347,594
303,142,431
Depreciation charged
7,024,594
88,851,891
95,876,485
Transferred to freehold assets
-
(76,083,085)
(76,083,085)
Accumulated depreciation as on June 30, 2024
15,819,431
307,116,400
322,935,831
Net book value June 30, 2024
98,344,099
463,252,685
561,596,784
Net book value June 30, 2023
105,368,693
456,854,705
562,223,398
5. Intangible assets
Amount in Taka
Particulars
Marketing rights,
brand and product
development
ERP and software
Trade name and
trade marks
Total
Cost
As on July 01, 2023
4,928,490,523
340,102,073
68,870,674
5,337,463,270
Addition / transferred in & capitalized
13,345,817
33,910,231
-
47,256,048
As on June 30, 2024
4,941,836,340
374,012,304
68,870,674
5,384,719,318
Amortization
As on July 01, 2023
796,892,075
138,153,169
40,698,834
975,744,078
Amortized during the year
60,765,871
29,696,579
1,487,067
91,949,517
Fair value amortization
157,160,000
-
2,160,000
159,320,000
As on June 30, 2024
1,014,817,946
167,849,748
44,345,901
1,227,013,595
Net book value June 30, 2024
3,927,018,394
206,162,556
24,524,773
4,157,705,723
Capital work in progress
562,991,156
Carrying value as on June 30, 2024
4,720,696,879
Carrying value as on June 30, 2023
4,721,034,633
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 137
Amount in Taka
June 30, 2024
June 30, 2023
6. Goodwill
From:
Acquisition of 85.2% stake in Nuvista Pharma Limited
546,691,213
546,691,213
Acquisition of 54.6% stake in Synovia Pharma PLC.
127,878,972
127,878,972
674,570,185
674,570,185
7. Other investments
Datails
June 30,2024
June 30,2023
Number of share
Value
Number of share
Value
Bangladesh Export Import Co. Ltd.
167,854
19,403,922
167,854
19,403,922
Central Depository Bangladesh Ltd. (CDBL)
571,182
1,569,450
571,182
1,569,450
20,973,372
20,973,372
a. The shares of Bangladesh Export Import Co. Ltd. are listed with Dhaka and Chittagong Stock Exchanges. The market value of each share
of Bangladesh Export Import Co. Ltd. as on June 30, 2024 was Tk. 115.60 (June 30, 2023: Tk.115.60). Since the market value of each share
remained unchanged compared to the prior year, no fair value gain or loss was recognized for the year in accordance with 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.
Amount in Taka
June 30, 2024
June 30, 2023
8. Inventories
This consists of as follows :
Finished goods
2,785,996,609
3,444,510,836
Work in process
1,301,204,702
930,042,235
Raw materials
4,781,412,347
4,722,534,133
Packing materials
1,472,183,374
1,351,874,369
Laboratory chemicals
147,819,118
102,921,941
Physician samples
91,567,032
113,354,964
R & D materials
58,367,488
43,029,486
Materials in transit
1,479,579,005
1,414,683,937
12,118,129,675
12,122,951,901
9. Spares and supplies
This consists of as follows :
Spares & accessories
609,352,808
634,125,746
Stock of stationery
7,293,485
19,049,051
Literature & other materials
280,018,742
176,891,632
896,665,035
830,066,429
AUDITED FINANCIALS
138 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Amount in Taka
June 30, 2024
June 30, 2023
10. Trade and other receivables
This consists of :
Trade receivables
3,462,341,234
3,369,995,799
Other receivables
304,977,433
215,616,471
3,767,318,667
3,585,612,270
Accounts receivable is reported net of provision for bad debts of Tk. 50,427,093. It includes an amount of Tk. 1,008,457,489, equivalent USD
8,620,937 (June 30, 2023: Tk. 1,071,490,950, equivalent USD 10,013,934) 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. 1,565,922,825 due from I and 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.1,568,631,378 on May 31, 2024.
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
3,205,281,132
3,153,725,178
Amount due for 6 months and above
257,060,102
216,270,621
3,462,341,234
3,369,995,799
Amount in Taka
June 30, 2024
June 30, 2023
11. Loans, advances, deposits and prepayments
This is unsecured, considered good and consists of as follows :
Clearing and forwarding
VAT
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
Prepayments
Overseas liaison office
158,079,073
402,551,649
212,713,975
10,165,681
815,091,698
25,572,766
81,316,381
28,512,350
283,426,201
292,690,249
136,619,823
70,081,285
140,516,040
565,923,250
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
Others
169,373,864
166,252,039
2,686,194,995
2,973,919,074
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.
12. Cash and cash equivalents
This consists of as follows :
a. Cash in hand (including imprest cash)
437,683,576
529,669,736
b. Cash at bank :
Current and FC account
416,422,073
606,016,442
854,105,649
1,135,686,178
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 139
Amount in Taka
June 30, 2024
June 30, 2023
13. 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
10,000,000,000
5,000,000,000
10,000,000,000
5,000,000,000
15,000,000,000
15,000,000,000
B. Issued, subscribed and paid-up :
51,775,750 shares fully paid-up in cash
357,093,942 ordinary shares issued as stock dividend
5,951,250 ordinary shares issued in exchange of shares of Beximco Infusions Ltd.
31,291,147 ordinary shares issued on conversion of preference shares
517,757,500
3,570,939,420
59,512,500
312,911,470
517,757,500
3,570,939,420
59,512,500
312,911,470
4,461,120,890
4,461,120,890
5,951,250 ordinary shares of Tk. 10 each were issued to the shareholders of Beximco Infusions Ltd. on it’s merger with Beximco Pharmaceuticals
Ltd. in 2005.
41,000,000 fully convertible 5% preference shares of Tk. 100 each were issued in 2009. 50% of the preference shares were converted into
16,169,191 ordinary shares of Tk. 10 each on February 1, 2010. The rest 50% were converted into 15,121,956 ordinary shares of Tk. 10 each
on May 2, 2010.
100,037,989 shares have been issued as underlying shares for the GDRs listed with AIM, a market operated and regulated by the London Stock
Exchange.
C. Composition of shareholding :
June 30, 2024
June 30, 2023
Number of shares
% of share
capital Number of shares
% of share
capital
Sponsors/Directors:
A S F Rahman
Salman F Rahman
Other directors and associates
9,058,888
9,080,095
116,291,316
2.03
2.04
26.07
9,058,888
9,080,095
116,305,973
2.03
2.04
26.07
134,430,299
30.14
134,444,956
30.14
Other Shareholdings:
Foreign portfolio investors (DSE/CSE)
Holders of GDRs (excluding board director)
Institutions (ICB, ICB Investors’ Accounts and Others)
Individual Shareholders
40,208,225
84,386,054
112,796,315
74,291,196
9.01
18.92
25.28
16.65
44,433,722
84,386,054
106,355,109
76,492,248
9.96
18.92
23.83
17.15
311,681,790
69.86
311,667,133
69.86
Total
446,112,089
100.00
446,112,089
100.00
Amount in Taka
June 30, 2024
June 30, 2023
14. Non-controlling interest
a. NPL
Non-controlling interest (opening )
Proportionate profit/(loss)
Less: Cash dividend
398,234,245
51,312,893
(6,946,744)
367,061,755
38,119,234
(6,946,744)
442,600,394
398,234,245
b. SPP
Non-controlling interest (opening )
Proportionate profit/(loss)
Less: Cash dividend
3,540,727,995
(14,070,623)
(16,319,630)
3,668,444,886
(127,716,891)
-
3,510,337,742
3,540,727,995
Total (NPL and SPP)
3,952,938,136
3,938,962,240
AUDITED FINANCIALS
140 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Amount in Taka
June 30, 2024
June 30, 2023
15. Long term borrowings-net of current maturity
This is arrived at as follows :
Project Loan - ODDO BHF SE, Frankfurt, Germany
358,540,451
236,117,255
Term loan-Agrani Bank PLC
1,074,711,583
1,915,856,341
Lease liability
324,719,260
393,116,228
Term loan-Dhaka Bank PLC
-
5,743,430
1,757,971,294
2,550,833,254
Lease liability
This consists of as follows:
Within one year
139,295,644
146,521,840
More than one year
324,719,260
393,116,228
464,014,904
539,638,068
16. Liability for gratuity, pension and WPPF
Gratuity payable
2,101,775,423
1,870,737,474
Pension payable
1,857,229
5,334,216
Workers profit participation fund
1,442,947,417
1,294,692,745
3,546,580,069
3,170,764,435
17. Short Term Borrowings
Janata Bank PLC
1,398,893,274
4,474,809,399
AB Bank PLC
516,304,775
505,552,356
First Security Islamic Bank PLC
299,641,234
497,141,234
Liability for UPAS letter of credit
112,667,386
492,157,729
Dhaka Bank PLC
669,153,294
651,509,553
2,996,659,963
6,621,170,271
18. Long term borrowings-current maturity
This consists of as follows:
Project loan - ODDO BHF SE, Frankfurt, Germany
330,502,647
621,801,668
Term loan-Agrani Bank PLC
795,200,000
664,500,000
Lease liability
139,295,644
146,521,840
Term loan-Dhaka Bank PLC
5,801,184
7,071,660
1,270,799,475
1,439,895,168
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 141
Amount in Taka
June 30, 2024
June 30, 2023
19. Trade and other payables
Goods & services
1,401,832,884
1,618,272,304
Provident fund
1,725,139,888
1,450,986,422
Advance against sales
80,239,404
149,408,697
Others
464,159,373
313,039,753
3,671,371,549
3,531,707,176
20. Accrued expenses
This is unsecured, falling due within one year and consists of as follows :
Operating expenses
722,884,475
815,268,873
Workers’ profit participation funds -(current year)
383,780,467
314,430,512
1,106,664,942
1,129,699,385
21. Dividend payable
The Dividend Payable as on June 30, 2024 includes Tk. 16,866,595 relating to BPL’s dividend for the year 2022-23 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. 16,795,907 of
the unclaimed dividend of BPL 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. The balance also includes dividend payables of Tk. 570,328 for NPL and
Tk. 218,335 for SPP, respectively.
Amount in Taka
July 2023- June 2024
July 2022- June 2023
22. Net revenue
Domestic sales
41,280,631,666
36,334,152,216
Export sales
2,958,353,024
2,763,246,905
Toll income
152,619,235
169,263,116
44,391,603,925
39,266,662,237
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)
930,042,235
17,788,288,385
6,334,393,606
25,052,724,226
(1,301,204,702)
23,751,519,524
3,444,510,836
708,626,128
27,904,656,488
(361,043,175)
(2,785,996,609)
684,808,447
16,873,468,924
5,865,614,869
23,423,892,240
(930,042,235)
22,493,850,005
2,486,292,696
804,670,592
25,784,813,293
(378,602,955)
(3,444,510,836)
24,757,616,704
21,961,699,502
AUDITED FINANCIALS
142 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Amount in Taka
July 2023- June 2024
July 2022- June 2023
24. Materials consumed
This is made-up as follows :
Opening stock
6,177,330,443
6,022,065,373
Purchase
18,012,372,781
17,028,733,994
Closing stock
(6,401,414,839)
(6,177,330,443)
17,788,288,385
16,873,468,924
25. Factory overhead
Salaries and allowances
Repairs and maintenance
Insurance premium
Canteen expenses
Municipal tax and land revenue
Registration and renewals
Travelling and conveyance
Entertainment
Research and development
Rent
Printing and stationery
Telephone, cellphone, internet and postage
Toll expense
Electricity, gas and water
Training and conference
Plant certification and regulatory approvals
Depreciation
Security expenses
Other expenses
2,283,172,524
748,412,022
58,571,431
129,126,930
7,168,140
6,194,990
49,108,122
3,076,524
359,588,137
15,806,381
29,161,949
10,522,803
101,643,739
836,291,555
13,583,294
30,847,016
1,595,266,112
39,168,147
17,683,790
2,146,597,875
642,798,164
56,018,358
118,509,700
9,753,993
9,952,617
48,695,586
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
6,334,393,606
5,865,614,869
26. General and administrative expenses
Salaries and allowances
Rent
Repairs and maintenance
Canteen expenses
Registration and renewals
Travelling and conveyance
Entertainment
Printing and stationery
Audit fee
Telephone, cellphone, internet and postage
Electricity, gas and water
Legal and consultancy
Company secretarial, regulatory fee and AGM expense
Municipal tax and land revenue
Training and conference
Depreciation
Meeting fee
Security expenses
Other expenses
722,169,406
48,451,523
133,573,060
34,282,526
20,793,400
39,882,903
9,987,943
6,267,099
3,570,000
6,542,625
29,163,440
43,522,147
45,906,910
811,442
20,217,759
56,162,426
4,154,982
26,067,373
58,233,654
672,837,997
42,885,394
105,857,992
30,213,859
8,801,754
33,069,565
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
1,309,760,618
1,171,715,379
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Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 143
Amount in Taka
July 2023- June 2024
July 2022- June 2023
27. Selling, marketing and distribution expenses
Salaries and allowances
Rent
Repairs and maintenance
Canteen expenses
Travelling and conveyance
Entertainment
Printing and stationery
Telephone, cellphone, internet and postage
Software and licenses
Electricity, gas and water
Market research and new products
Training and conference
Insurance premium
Sample expense
Advertisement
Field operation
Events, programs and campaign
Brand development
CSR expenses
Sales promotion expenses
Books, journal and periodicals
Salesforce logistics
Clinical studies and research
Pharmacovigilance
Literature and news letter
Registration and renewals
Export insurance, freight and C & F expenses
Distribution commission
Delivery expense
Depreciation and amortization
Security expenses
Bad debts
Other expenses
3,761,698,282
176,634,685
97,865,836
40,676,018
954,281,154
80,829,746
73,260,614
95,280,904
50,976,692
30,704,373
74,553,445
210,530,388
37,437,615
437,644,495
1,796,687
76,390,991
471,214,452
284,953,472
9,740,326
239,962,192
9,966,794
51,863,073
2,999,486
35,352,917
387,413,741
167,035,638
148,848,597
694,714,653
547,857,488
342,381,594
22,013,841
17,177,034
15,798,417
3,375,461,647
160,024,069
96,876,030
37,857,507
862,980,287
85,799,736
55,221,661
120,811,372
70,471,632
25,227,242
101,986,509
200,581,827
36,411,390
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
9,649,855,640
8,917,007,393
28. Other income
Interest income
Dividend
Royalty
Cash incentive on export
Exchange rate fluctuation gain / (loss)
Forfeited PF refund
Profit/(Loss) on sale of fixed assets
Miscellaneous Income
15,773,444
1,310,218
66,089,942
281,363,469
8,895,188
2,402,329
16,375,521
2,377,473
5,529,516
1,931,517
61,461,940
268,831,523
66,944,083
6,096,998
13,815,805
28,046,362
394,587,584
452,657,744
29. Finance cost
Interest on bank borrowings
726,853,316
883,207,883
Interest on lease finance
50,272,984
58,059,511
Interest on loan from PF and WPPF
343,912,750
300,393,065
Bank and other charges
38,663,117
44,037,794
1,159,702,167
1,285,698,253
AUDITED FINANCIALS
144 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
Amount in Taka
July 2023- June 2024
July 2022- June 2023
30. Income tax expenses
This consists of as follows :
(a) Current tax
1,637,872,251
1,468,598,852
(b) Deferred tax expense
20,832,192
75,701,600
1,658,704,443
1,544,300,452
Deferred Tax expense is arrived at as follows :
i. BPL
Property, plant & equipment ( difference in book value & tax base)
13,060,582,296
12,608,874,084
Deferred liability (Gratuity)
(1,762,588,905)
(1,554,826,488)
Provision for bad debts
(17,730,587)
(13,172,086)
Temporary difference
11,280,262,804
11,040,875,510
Tax rate
22.5%
22.5%
Deferred Tax liability at end of the year
2,538,059,131
2,484,196,990
Deferred tax liability at beginning of the year
2,484,196,990
2,427,208,876
Change in deferred tax liability
53,862,141
56,988,114
Deferred tax on revaluation surplus
1,124,118
1,267,772
Deferred Tax charged to profit or loss and other comprehensive income
54,986,259
58,255,886
ii. NPL
Property, plant & equipment ( difference in book value & tax base)
378,426,468
417,006,176
Deferred liability (Gratuity)
(228,837,373)
(193,019,251)
Provision for bad debts
(3,497,456)
(2,991,744)
Temporary Difference
146,091,639
220,995,181
Tax rate
25.0%
30.0%
Deferred tax liabilities at end of the year
36,522,910
66,298,554
Deferred tax liabilities at beginning of the year
66,298,554
109,628,828
Transferred to revaluation reserve
-
(28,647,841)
Deferred Tax charged to profit or loss and other comprehensive income
(29,775,644)
(14,682,433)
iii.SPP
Property, plant & equipment ( difference in book value & tax base)
136,581,852
195,693,431
Deferred liability (Gratuity)
(112,206,374)
(128,225,951)
Provision for bad debts
(29,199,050)
-
Carried forward loss
(238,738,443)
(272,965,958)
Temporary difference
(243,562,015)
(205,498,478)
Tax rate
25.0%
27.5%
Deferred Tax liability/(asset) at end of the year
(60,890,504)
(56,512,081)
Deferred tax liability/(asset) at beginning of the year
(56,512,081)
(88,640,228)
Deferred Tax charged to profit or loss and other comprehensive income
(4,378,423)
32,128,147
Total (BPL, NPL & SPP)
20,832,192
75,701,600
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Annual Report 2023-24 | Beximco Pharma and its Subsidiaries (Consolidated) | 145
Amount in Taka
July 2023- June 2024
July 2022- June 2023
31. Other comprehensive income/(expense)
Fair value gain/(loss) on investment in listed shares
-
(2,383,527)
-
(2,383,527)
32. Earnings per share (EPS)
(a) Earnings attributable to the owners of the Company
5,829,529,200
4,614,066,147
(b) Weighted average number of shares outstanding during the year
446,112,089
446,112,089
Earnings per share (EPS)
13.07
10.34
June 30, 2024
June 30, 2023
33. Net asset value (NAV) per share
Total assets
69,344,022,640
69,156,783,247
Less total liabilities
(17,441,119,760)
(21,537,117,269)
Less non-controlling interest
(3,952,938,136)
(3,938,962,240)
Equity attributable to the owners of the Company
47,949,964,744
43,680,703,738
Number of ordinary shares
446,112,089
446,112,089
Net asset value (NAV) per share
107.48
97.91
July 2023- June 2024
July 2022- June 2023
34. Net operating cash flow per share (NOCFPS)
Net cash generated from operating activities
8,364,466,317
6,084,786,858
Number of ordinary shares
446,112,089
446,112,089
Net operating cash flows per share (NOCFPS)
18.75
13.64
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146 | Beximco Pharma and its Subsidiaries (Consolidated) | Annual Report 2023-24
36. Related party disclosures
a. Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of related parties
Nature of transactions
Value of transaction
Balance at year end
I & I Services Ltd.
Delivery of products
39,402,148,411
1,565,922,825
Distribution commission
694,714,653
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 40% cash dividend (i.e. Tk. 4.00 per share of Tk 10 each) for the year 2023-24. The
dividend proposal is subject to shareholders’ approval at the forthcoming Annual General Meeting.
b. The Board of Directors of Nuvista Pharma Limited (NPL) recommended 50% cash dividend (i.e. Tk. 5.00 per share of Tk 10 each) for the year
2023-24. The proposed dividend is subject to approval of the shareholders of NPL in the forthcoming Annual General Meeting.
c. The Board of Directors of Synovia Pharma PLC (SPP) recommended 10% cash dividend (i.e. Tk 10.00 per share of Tk 100 each) for the year
2023-24. 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.
Amount in Taka
July 2023- June 2024
July 2022- June 2023
35. Reconciliation of net profit with cash flows from operating activities
Profit after tax
5,866,771,470
4,524,468,490
Adjustment to reconcile net profit to net cash provided by operating activities :
Non-cash/ non-operating items:
2,064,343,994
2,294,487,968
Depreciation
Amortization
Deferred tax
Exchange rate fluctuation (gain) / loss on foreign currency bank loan
Dividend income
(Profit) / Loss on sale of fixed assets
1,742,540,614
251,269,517
20,832,192
87,504,854
(1,142,364)
(16,375,521)
1,817,825,859
242,677,279
75,701,600
233,844,494
(1,931,517)
(13,815,805)
Effect of exchange rate changes on cash and cash equivalents
(20,285,298)
(59,813,942)
Changes in working Capital
433,350,853
(734,169,600)
(Increase)/decrease in inventories
(Increase)/decrease in spares and supplies
(Increase)/decrease in trade and other receivables
(Increase)/Decrease in advance income tax
(Increase)/decrease in loans, advances, deposits and prepayments
Increase/(decrease) in gratuity & WPPF
Increase/(decrease) in trade and other payables
Increase/(decrease) in accrued expenses
Increase/(decrease) in income tax payable
4,822,226
(66,598,606)
(181,706,397)
(67,551,527)
267,025,059
375,815,634
149,398,479
(23,034,442)
(24,819,573)
(1,727,982,896)
(100,943,099)
(442,795,076)
(30,983,360)
(207,578,190)
385,691,774
1,059,575,776
(23,792,401)
354,637,872
Net cash generated from operating activities
8,364,466,317
6,084,786,858
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 147
Financial Statements
Beximco Pharmaceuticals Limited
For the year ended June 30, 2024
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 147
AUDITED FINANCIALS
148 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
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 2024 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 2024, 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 (PPE)
The carrying value of the PPE was Tk. 36,364,097,247 as at 30
June, 2024.
Expenditures are capitalized if they create new assets or enhance
the existing assets, and expensed if they relate to repair or
maintenance of the assets. Classification of the expenditures
involves judgment. The useful lives of PPE items are based on
management’s estimates regarding the period during which the
assets or its significant components will be used. The estimates
are based on historical experience and market practice and take
into consideration the physical condition of the assets.
The valuation of PPE was identified as a key audit matter due to
the significance of this balance to the financial statements and
that there is significant measurement uncertainty involved in this
valuation.
See Note No. 4 to the financial statements
Our audit included the following procedure:
• We assessed whether the accounting policies in relation to the
capitalization of expenditures are in compliance with IFRS and
found them to be consistent.
• We inspected a sample of invoices and L/C documents to
determine whether the classification between capital and
revenue expenditure was appropriate.
• We evaluated whether the useful lives determined and applied
by the management were in line with historical experience and
the market practice.
• We checked whether the depreciation of PPE items was
commenced timely, by comparing the date of the reclassification
from capital work in progress to ready for use, with the date of
the act of completion of the work.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 149
Revenue recognition
Valuation of Inventory
The Company reported total revenue of Tk. 36,899,028,814.
Revenue is measured net of returns and allowances, rebates, trade
discount and VAT imposed on the Company’s sales. The risk of
revenue misstatement arises from the incorrect timing of revenue
recognition and the recording of fictitious revenue.
There is also a risk that revenue may be overstated through
manipulation of the return, allowance, discounts and rebates
recognised resulting from the pressure management may feel to
achieve performance targets.
See Note No. 25 & 3.1 to the financial statements
The inventory of Tk. 10,325,321,828 as at 30 June, 2024 was held
at different locations across the country.
Inventories are carried at the lower of cost or net realizable value.
As a result, the management apply judgment in determining the
appropriate values for slow-moving or obsolete items.
Since the value of Inventory is significant to the Financial Statements
and there is significant measurement uncertainty involved in this
valuation, the valuation of inventory was significant to our audit.
See Note No. 9 to the financial statements
We verified the appropriateness of management’s assumptions
applied in calculating the value of the inventory by:
• Evaluating the design and implementation of key inventory
controls.
• Attending inventory counts on sample basis and reconciling the
count results to the inventory listing to test the completeness of
data.
• Reviewing the requirement of inventory provisioning and action
there upon by the management.
• Comparing the net realizable value obtained through a detailed
review of sales subsequent to the year-end, to the cost price of a
sample of inventories.
We evaluated and tested the design and operating effectiveness of
key controls focusing on the following:
• Authorization and segregation of duties for invoice creation and
modification
• Pricing controls and contract management
• Basis of allowance, rebates, and discounts;
• Calculation of VAT;
• Timing of revenue recognition;
• Completeness and accuracy of recorded Revenue
Our substantive procedures in relation to the revenue recognition
comprises the following:
•
Obtaining supporting documentation for sales transactions
recorded either side of year- end as well as credit notes issued
after the year end date to determine whether revenue was
recognised in the correct period;
• Tested whether revenue was recognized only when performance
obligations were satisfied, and control of goods or services
transferred to customers;
• Critically assessing the treatment of sales returns and allowances
to ensure accurate adjustments to revenue.
•
Finally assessed the appropriateness and presentation of
disclosures against relevant accounting standards.
Based on our testing, no material issues were identified with respect
to revenue recognition. The financial statements appropriately
reflect revenue in accordance with the applicable standards.
Risk
Our response to the risk
AUDITED FINANCIALS
150 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Contingent Liability
Related party transactions
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 litigations 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 for
its subsidiaries.
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.
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.
Our audit procedures amongst others included the following:
• Evaluated the design and tested the operating effectiveness
of controls over identification and disclosure of related party
transactions.
• Evaluated the transactions among the related parties and tested
material accounts balances.
•
Evaluated the disclosures in the financial statements in
compliance with IAS 24.
Other Information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than the
financial statements and our 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.
Risk
Our response to the risk
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 151
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the internal controls of the Company.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards. 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 28, 2024
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS666605
AUDITED FINANCIALS
152 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Beximco Pharmaceuticals Limited
Statement of financial position
As at June 30, 2024
Amount in Taka
Notes
June 30, 2024
June 30, 2023
ASSETS
Non-current assets
45,078,407,967
44,680,252,471
Property, plant and equipment
Right-of-use assets
Intangible assets
Investment in subsidiaries
Investment in associates
Other investments
4
4 (b)
5
6
7
8
36,364,097,247
533,744,915
1,218,445,109
6,911,821,604
29,325,720
20,973,372
36,136,306,483
517,752,778
1,064,072,514
6,911,821,604
29,325,720
20,973,372
Current assets
17,906,129,908
17,913,545,825
Inventories
Spares and supplies
Trade and other receivables
Loans, advances, deposits and prepayments
Cash and cash equivalents
9
10
11
12
13
10,325,321,828
801,296,594
3,598,962,271
2,423,469,564
757,079,651
9,951,338,526
761,585,177
3,633,581,853
2,628,391,010
938,649,259
TOTAL ASSETS
62,984,537,875
62,593,798,296
EQUITY AND LIABILITIES
Shareholders’ equity
47,391,484,377
43,341,239,142
Share capital
Share premium
Excess of issue price over face value of GDRs
Capital reserve on merger
Revaluation surplus
Unrealized gain/(loss)
14(b)
15
4(c)
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,108,657,948
18,148,196
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,112,529,914
18,148,196
Retained earnings
34,549,494,745
30,495,377,544
Non-current liabilities
7,480,795,497
7,837,897,000
Long term borrowings-net of current maturity
Liability for gratuity and WPPF
Deferred tax liability
16
17
18
1,737,316,040
3,205,420,326
2,538,059,131
2,509,415,964
2,844,284,046
2,484,196,990
Current liabilities
Short term borrowings
Long term borrowings-current maturity
Trade and other payables
Accrued expenses
Dividend payable
Income tax payable
19
20
21
22
23
24
8,112,258,001
2,714,839,283
1,248,959,070
3,049,103,942
588,693,353
86,434,410
424,227,943
11,414,662,154
6,146,635,301
1,415,956,691
2,709,945,476
627,094,074
87,716,594
427,314,018
TOTAL EQUITY AND LIABILITIES
62,984,537,875
62,593,798,296
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS666605
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 153
Beximco Pharmaceuticals Limited
Statement of profit or loss and other comprehensive income
For the year ended June 30, 2024
Amount in Taka
Notes
July 2023 - June 2024 July 2022 - June 2023
Net revenue
25
36,899,028,814
32,991,855,420
Cost of goods sold
26
(20,646,152,225)
(18,471,417,294)
Gross profit
16,252,876,589
14,520,438,126
Operating expenses
(8,549,529,705)
(7,913,668,032)
General and administrative expenses
29
(1,021,441,763)
(903,653,034)
Selling, marketing and distribution expenses
30
(7,528,087,942)
(7,010,014,998)
Profit from operations
7,703,346,884
6,606,770,094
Other income
31
891,839,914
832,045,709
Finance cost
32
(1,101,682,248)
(1,246,616,832)
Profit before tax and WPPF
7,493,504,550
6,192,198,971
Contribution to WPPF
33
(356,833,550)
(294,866,618)
Profit before tax
7,136,671,000
5,897,332,353
Income tax expenses
34
(1,526,157,571)
(1,309,323,445)
Current tax
(1,471,171,312)
(1,251,067,559)
Deferred tax income/ (expense)
(54,986,259)
(58,255,886)
Profit after tax
5,610,513,429
4,588,008,908
Other comprehensive income/(loss)
35
-
(2,383,527)
Total comprehensive income
5,610,513,429
4,585,625,381
Earnings per share (EPS)
36
12.58
10.28
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS666605
AUDITED FINANCIALS
154 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Beximco Pharmaceuticals Limited
Statement of changes in equity
For the year ended June 30, 2024
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
Total
Balance as on July 01, 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
Total comprehensive income :
Profit for the Year
-
-
-
-
-
-
5,610, 513,429
5,610, 513,429
Other comprehensive income/(loss)
-
-
-
-
-
-
-
-
Transactions with the shareholders:
Cash dividend
-
-
-
-
-
- (1,561,392,312)
(1,561,392,312)
Others:
Adjustment for depreciation on revalued assets
-
-
-
-
(4,996,084)
-
4,996,084
-
Adjustment for deferred tax on revalued assets
-
-
-
-
1,124,118
-
-
1,124,118
Balance as on June 30, 2024
4,461,120,890
5,269,474,690
1,689,636,958
294,950,950
1,108,657,948
18,148,196 34,549,494,745
47,391,484,377
Net Asset Value (NAV) per share (Note-37)
106.23
For the year ended June 30, 2023
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, 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
-
-
-
-
-
-
4,588,008,908
4,588,008,908
Other comprehensive income/(loss)
-
-
-
-
-
(2,383,527)
-
(2,383,527)
Transactions with the shareholders:
Cash dividend
-
-
-
-
-
- (1,561,392,312)
(1,561,392,312)
Others:
Adjustment for depreciation on revalued assets
-
-
-
-
(5,634,546)
-
5,634,546
-
Adjustment for deferred tax on revalued assets
-
-
-
-
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
1,112,529,914
18,148,196 30,495,377,544
43,341,239,142
Net Asset Value (NAV) per share (Note-37)
97.15
The Notes are an integral part of the Financial Statements
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS666605
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 155
Beximco Pharmaceuticals Limited
Statement of cash flows
For the year ended June 30, 2024
Amount in Taka
Notes
July 2023 - June 2024
July 2022 - June 2023
Cash flows from operating activities :
Cash receipts from customers and others
37,813,668,510
33,062,769,123
Cash paid to suppliers and employees
(27,449,820,048)
(25,132,310,268)
Cash generated from operations
10,363,848,462
7,930,458,855
Interest paid
(1,099,066,524)
(1,233,059,791)
Interest received
231,977
205,684
Income tax paid
(1,474,257,387)
(915,419,404)
Net cash generated from operating activities
39
7,790,756,528
5,782,185,344
Cash flows from investing activities :
Acquisition of property, plant and equipment
(1,822,825,622)
(2,028,517,002)
Intangible assets
(236,199,694)
(286,712,648)
Disposal of property, plant and equipment
26,764,867
13,992,690
Disposal of intangible assets
-
67,725,000
Dividend received
60,828,670
41,985,413
Net cash used in investing activities
(1,971,431,779)
(2,191,526,547)
Cash flows from financing activities :
Net increase /(decrease) in long term borrowings
(1,026,602,399)
(1,749,703,463)
Net increase/(decrease) in short term borrowings
(3,431,796,018)
(217,050,916)
Dividend paid
(1,562,674,496)
(1,561,046,433)
Net cash from/(used in) financing activities
(6,021,072,913)
(3,527,800,812)
Increase/(decrease) in cash and cash equivalents
(201,748,164)
62,857,985
Opening cash and cash equivalents
938,649,259
816,224,089
Effect of exchange rate changes on cash and cash equivalents
39
20,178,556
59,567,185
Closing cash and cash equivalents
13
757,079,651
938,649,259
Net operating cash flow per share
38
17.46
12.96
The Notes are an integral part of the Financial Statements.
Approved and authorised for issue by the Board of Directors on October 28, 2024 and signed for and on behalf of the Board :
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
Per our report of even date
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS666605
AUDITED FINANCIALS
156 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Beximco Pharmaceuticals Limited
Notes to the financial statements
As at and for the year ended June 30, 2024
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), a market operated and regulated by 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 in Bangladesh, while its GDRs
are traded on the AIM of the London Stock Exchange.
The corporate headquarters of Beximco Pharma is based in Dhaka. The industrial units are located at Tongi and Kaliakoir of Gazipur district
– vicinities close to the capital city Dhaka. The manufacturing facilities of the Company are 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; 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.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 157
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, 2024;
(b) Statement of profit or loss and other comprehensive income for the year ended June 30, 2024;
(c) Statement of changes in equity for the year ended June 30, 2024;
(d) Statement of cash flows for the year ended June 30, 2024; 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, 2023 to June 30, 2024. The last audited financial statements were
prepared for the year ending June 30, 2023. 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 28, 2024.
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: Prop-
erty, 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 accor-
dance 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 market-
able 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 as-
set 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) Trade and other receivables
Trade and other 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 a trade
and other 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
Trade 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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160 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
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 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 Act 2006 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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162 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
4 . Property, plant and equipment
As on June 30, 2024
Amount in Taka
Particulars
Land
Building
and other
constructions
Plant
and
machinery
Furniture
and
fixtures
Transport
and
vehicle
Office
equipment
Total
Property plant &
equipment
Cost
As on July 01, 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
Additions
-
86,148,925
178,350,204
97,195,276
26,131,032
21,326,676
409,152,113
Transferred from right-of-use asset
-
-
-
-
48,312,140
-
48,312,140
Transferred in & capitalized
-
188,349,307
979,411,599
51,443,546
-
988,241
1,220,192,693
Disposal during the Year
-
-
(14,794,851)
-
(49,989,590)
-
(64,784,441)
Cost as on June 30, 2024
3,652,765,982 15,569,868,055 27,394,419,338 756,377,672
840,443,814 811,114,686
49,024,989,547
Accumulated depreciation
As on July 01, 2023
-
2,895,977,778
8,793,421,125 187,645,939
689,725,048 504,505,453
13,071,275,343
Depreciation charged
-
330,586,118
1,056,705,697
39,608,729
40,079,161
38,025,890
1,505,005,595
Transferred from right-of-use asset
-
-
-
-
30,632,411
-
30,632,411
Adjustment for assets disposed off
-
-
(12,372,542)
-
(43,732,483)
-
(56,105,025)
Accumulated depreciation as on June 30, 2024
-
3,226,563,896
9,837,754,280 227,254,668
716,704,137 542,531,343
14,550,808,324
Net book value June 30, 2024
3,652,765,982 12,343,304,159 17,556,665,058 529,123,004 123,739,677
268,583,343
34,474,181,223
Capital work in progress 4 (a)
1,889,916,024
Carrying value as on June 30, 2024
36,364,097,247
As on June 30, 2023
Particulars
Land
Building
and other
constructions
Plant
and
machinery
Furniture
and
fixtures
Transport
and
vehicle
Office
equipment
Total
Property plant &
equipment
Cost
As on July 01, 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
Additions
309,024,540
1,905,236
81,028,605 115,682,565
-
24,935,276
532,576,222
Transferred from right-of-use asset
-
-
-
-
62,708,000
-
62,708,000
Transferred in & capitalized
-
123,288,931
114,500,800
18,778,132
-
5,308,922
261,876,785
Disposal during the Year
-
-
(829,000)
(9,746,278)
(22,899,200)
-
(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
-
2,558,680,562
7,669,003,574 165,834,945
637,478,804 459,779,614
11,490,777,499
Depreciation charged
-
337,297,216
1,125,070,985
29,526,071
27,456,664
44,725,839
1,564,076,775
Transferred from right-of-use asset
-
-
-
-
46,269,474
-
46,269,474
Adjustment for assets disposed off
-
-
(653,434)
(7,715,077)
(21,479,894)
-
(29,848,405)
Accumulated depreciation as on June 30, 2023
-
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)
1,795,464,784
Carrying value as on June 30, 2023
36,136,306,483
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Amount in Taka
June 30, 2024
June 30, 2023
4 (a). Capital work in progress is arrived at as follows :
Opening Balance
1,795,464,784
614,578,073
Addition during the year
1,314,643,933
1,442,763,496
3,110,108,717
2,057,341,569
Transferred & capitalized
1,220,192,693
261,876,785
Building and other constructions
188,349,307
123,288,931
Plant & machinery
979,411,599
114,500,800
Furniture & fixture
51,443,546
18,778,132
Office equipment
988,241
5,308,922
Closing balance
1,889,916,024
1,795,464,784
4 (b). Right of use assets
As on June 30, 2024
Particulars
Property
Vehicle
Total right-of-use
Assets
Cost
As on July 01, 2023
114,163,530
616,497,398
730,660,928
Additions
-
112,929,600
112,929,600
Transferred to freehold assets
-
(48,312,140)
(48,312,140)
Cost as on June 30, 2024
114,163,530
681,114,858
795,278,388
Accumulated depreciation
As on July 01, 2023
8,794,837
204,113,313
212,908,150
Depreciation charged
7,024,594
72,233,140
79,257,734
Transferred to freehold assets
-
(30,632,411)
(30,632,411)
Accumulated depreciation as on June 30, 2024
15,819,431
245,714,042
261,533,473
Net book value as on June 30, 2024
98,344,099
435,400,816
533,744,915
As on June 30, 2023
Particulars
Property
Vehicle
Total right-of-use
Assets
Cost
As on July 01, 2022
114,163,530
612,128,090
726,291,620
Additions
-
67,077,308
67,077,308
Transferred to freehold Assets
-
(62,708,000)
(62,708,000)
Cost as on June 30, 2023
114,163,530
616,497,398
730,660,928
Accumulated depreciation
As on July 01, 2022
1,268,486
159,946,461
161,214,947
Depreciation charged
7,526,351
90,436,326
97,962,677
Transferred to freehold assets
-
(46,269,474)
(46,269,474)
Accumulated depreciation as on June 30, 2023
8,794,837
204,113,313
212,908,150
Net book value as on June 30, 2023
105,368,693
412,384,085
517,752,778
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Amount in Taka
June 30, 2024
June 30, 2023
4 (c). Revaluation surplus
Opening balance
1,112,529,914
1,116,896,688
Adjustment for depreciation on revalued assets
(4,996,084)
(5,634,546)
Adjustment for deferred tax on revalued assets
1,124,118
1,267,772
1,108,657,948
1,112,529,914
5. Intangible assets
Particulars
Marketing rights &
product development
ERP and software
Total
Cost
As on July 01, 2023
895,366,411
258,529,155
1,153,895,566
Addition / transferred in & capitalized
13,345,817
19,178,161
32,523,978
As on June 30, 2024
908,712,228
277,707,316
1,186,419,544
Amortization
As on July 01, 2023
372,356,505
76,781,988
449,138,493
Amortized during the year
58,489,715
23,337,384
81,827,099
As on June 30, 2024
430,846,220
100,119,372
530,965,592
Net book value June 30, 2024
477,866,008
177,587,944
655,453,952
Capital work in progress 5 (a)
562,991,157
Carrying value as on June 30, 2024
477,866,008
177,587,944
1,218,445,109
Net book value June 30, 2023
523,009,906
181,747,167
704,757,073
Capital work in progress as on June 30, 2023 5 (a)
359,315,441
Carrying value as on June 30, 2023
523,009,906
181,747,167
1,064,072,514
Amount in Taka
June 30, 2024
June 30, 2023
5 (a). Capital work in progress is arrived at as follows :
Opening balance
359,315,441
166,850,363
Addition during the year
217,021,533
228,668,864
576,336,974
395,519,227
Transferred & capitalized
13,345,817
36,203,786
Closing balance
562,991,157
359,315,441
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7. Investment in associates
This represents value of 3,900,000 Ordinary Shares of Malaysian Ringgit (RM) 1 each issued to Beximco Pharmaceuticals Ltd. (BPL) by BioCare
Manufacturing Sdn Bhd (“BioCare”), Malaysia. Beximco Pharmaceuticals Ltd. was issued 30% of the equity share of the Malaysian based
company for providing full technical support to set up a manufacturing facility to produce specialized pharmaceutical products in 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
Amount in Taka
June 30,2024
June 30,2023
Number of shares
Value
Number of shares
Value
Bangladesh Export Import Co. Ltd.
167,854
19,403,922
167,854
19,403,922
Central Depository Bangladesh Ltd. (CDBL)
571,182
1,569,450
571,182
1,569,450
20,973,372
20,973,372
a. The shares of Bangladesh Export Import Co. Ltd. are listed with Dhaka and Chittagong Stock Exchanges. The market value of each share
of Bangladesh Export Import Co. Ltd. as on June 30, 2024 was Tk. 115.60 (June 30, 2023: Tk.115.60). Since the market value of each share
remained unchanged compared to the prior year, no fair value gain or loss was recognized for the year in accordance with 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.
June 30, 2024
June 30, 2023
9. Inventories
This consists of as follows :
Finished goods
Work in process
Raw materials
Packing materials
Laboratory chemicals
Physician samples
R & D materials
Materials in transit
2,089,048,952
1,134,373,481
4,242,587,634
1,334,329,212
147,819,118
91,567,032
58,367,488
1,227,228,911
2,654,584,197
803,580,144
3,987,274,966
1,206,041,708
102,921,941
113,354,964
43,029,486
1,040,551,120
10,325,321,828
9,951,338,526
Amount in Taka
June 30, 2024
June 30, 2023
6. Investment in subsidiaries
Nuvista Pharma Limited
2,125,186,000
2,125,186,000
Beximco Pharma API Limited
19,999,900
19,999,900
Synovia Pharma PLC
4,766,635,704
4,766,635,704
6,911,821,604
6,911,821,604
a. The Company holds 10,013,474 shares of Tk. 10 each representing 85.2% of the Paid Up Capital of Nuvista Pharma Ltd (NPL) and 1,963,241
shares of Tk. 100 each representing 54.6% of the Paid Up Capital of Synovia Pharma PLC (SPP) while 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.
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166 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Amount in Taka
June 30, 2024
June 30, 2023
10. Spares and supplies
This consists of as follows :
Spares & accessories
Stock of stationery
Literature & other materials
555,584,085
7,293,485
238,419,024
605,606,518
19,049,051
136,929,608
801,296,594
761,585,177
11. Trade and other receivables
This consists of :
Trade receivables
Other receivables
3,190,819,941
408,142,330
3,145,804,428
487,777,425
3,598,962,271
3,633,581,853
Trade receivable is reported net of provision for bad debts of Tk. 17,730,587. It includes an amount of Tk. 1,005,651,552, equivalent USD
8,595,312 (June 30, 2023: Tk. 1,071,490,950, equivalent USD 10,013,934) receivable against export sales. Part of the export sales receivables
are against Letter of Credit while the rest are unsecured but considered good.
Trade receivable also includes Tk. 1,565,922,825 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.1,568,631,378 on May 31, 2024. Additionally Tk 56,166,691 Tk
10,261,209 and Tk 995,350 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 in Taka
Amount due within 6 months
Amount due for 6 months & above
3,004,096,231
186,723,710
2,984,345,190
161,459,238
3,190,819,941
3,145,804,428
12. Loans, advances, deposits and prepayments
This is unsecured, considered good and consists of as follows :
Clearing and forwarding
VAT
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
Prepayments
Overseas liaison office
Others
158,079,073
343,497,213
174,835,405
10,165,681
770,716,889
25,572,766
80,339,045
27,456,494
167,722,110
325,116,634
123,617,608
70,081,285
146,269,361
140,516,040
508,850,046
171,677,678
2,133,040
713,575,198
19,849,064
106,942,014
39,161,704
142,172,413
464,428,527
108,004,192
71,228,285
139,852,809
2,423,469,564
2,628,391,010
a. The maximum amount due from the employees during the year was Tk. 113,893,906 on February 2024
b. No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally or jointly with
any other person, except as stated above.
c. Raw & packing material includes Tk 13,874,241 and Tk 115,864,582 is due from its subsidiary companies Nuvista Pharma Ltd. and Synovia
Pharma PLC ., respectively.
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Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 167
14. Share capital
a. Authorized :
1,000,000,000 ordinary shares of Tk. 10 each
10,000,000,000
10,000,000,000
50,000,000 fully convertible 5 % preference shares of Tk. 100 each
5,000,000,000
5,000,000,000
15,000,000,000
15,000,000,000
b. Issued, subscribed and paid-up :
51,775,750 shares fully paid-up in cash
517,757,500
517,757,500
357,093,942 ordinary shares issued as stock dividend
3,570,939,420
3,570,939,420
5,951,250 ordinary shares issued in exchange of shares of Beximco Infusions Ltd.
59,512,500
59,512,500
31,291,147 ordinary shares issued on conversion of preference shares
312,911,470
312,911,470
4,461,120,890
4,461,120,890
5,951,250 ordinary shares of Tk. 10 each were issued to the shareholders of Beximco Infusions Ltd. on it’s merger with Beximco Pharmaceuticals
Ltd. in 2005.
41,000,000 fully convertible 5% preference shares of Tk. 100 each were issued in 2009. 50% of the preference shares were converted into
16,169,191 ordinary shares of Tk. 10 each on February 1, 2010. The rest 50% were converted into 15,121,956 ordinary shares of Tk. 10 each
on May 2, 2010.
100,037,989 shares have been issued as underlying shares for the GDRs listed with AIM, a market operated and regulated by the London Stock
Exchange.
Amount in Taka
June 30, 2024
June 30, 2023
13. Cash and cash equivalents
This consists of as follows :
a. Cash in hand (including imprest cash)
437,584,908
529,658,970
b. Cash at bank :
Current & FC account
319,494,743
408,990,289
757,079,651
938,649,259
c. Composition of shareholding :
June 30, 2024
June 30, 2023
Number of
shares
% of Share
capital
Number of
shares
% of Share
capital
Sponsors/Directors:
A S F Rahman
9,058,888
2.03
9,058,888
2.03
Salman F Rahman
9,080,095
2.04
9,080,095
2.04
Other directors and associates
116,291,316
26.07
116,305,973
26.07
134,430,299
30.14
134,444,956
30.14
Other Shareholdings:
Foreign portfolio investors (DSE/CSE)
40,208,225
9.01
44,433,722
9.96
Holders of GDRs (excluding board director)
84,386,054
18.92
84,386,054
18.92
Institutions (ICB, ICB Investors’ accounts & others)
112,796,315
25.28
106,355,109
23.83
Individual shareholders
74,291,196
16.65
76,492,248
17.15
311,681,790
69.86
311,667,133
69.86
Total
446,112,089
100.00
446,112,089
100.00
AUDITED FINANCIALS
168 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
d. Distribution schedule of ordinary shares:
Range of
shareholdings
In number of shares
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Number of
shareholders
% of
Holding
Number of
shareholders
% of
Holding
Number of
shares
% of
Holding
Number of
shares
% of
Holding
1 to 499
35,952
74.56%
41,903
76.66%
3,692,907
0.83%
4,268,126
0.96%
500 to 5,000
10,010
20.77%
10,465
19.15%
15,216,245
3.41%
15,819,525
3.56%
5,001 to 10,000
954
1.98%
984
1.80%
6,982,595
1.57%
7,194,582
1.61%
10,001 to 20,000
503
1.04%
530
0.97%
7,163,396
1.61%
7,699,156
1.73%
20,001 to 30,000
204
0.42%
201
0.37%
5,087,435
1.14%
5,035,520
1.13%
30,001 to 40,000
117
0.24%
126
0.23%
4,126,899
0.93%
4,415,006
0.99%
40,001 to 50,000
75
0.16%
67
0.12%
3,399,667
0.76%
3,028,518
0.68%
50,001 to 100,000
150
0.31%
154
0.28%
10,978,783
2.46%
11,436,351
2.56%
100,001 to 1,000,000
217
0.45%
208
0.38%
63,959,609
14.34%
64,445,367
14.45%
Over 1,000,000*
35
0.07%
24
0.04%
325,504,553
72.96%
322,769,938
72.35%
Total
48,217
100%
54,662
100%
446,112,089
100%
446,112,089
100%
* Shares issued against 100,037,989 number of GDRs traded in AIM are considered as one shareholder as no information on individual
shareholdings are available.
e. Market price of ordinary shares:
The shares are listed with Dhaka and Chittagong Stock Exchanges of Bangladesh while the GDRs with the AIM, a market operated and regulated
by the London Stock Exchange. Price of each share/ GDR on the last working day of the fiscal year were:
June 30, 2024
June 30, 2023
Dhaka Stock Exchange
Tk.
118.10
146.20
Chittagong Stock Exchange
Tk.
118.40
145.70
AIM
GBP
0.390
0.355
f. Option on unissued ordinary shares :
There is no option on unissued shares as on June 30, 2024.
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.
Amount in Taka
June 30, 2024
June 30, 2023
16. Long term borrowings-net of current maturity
This is arrived at as follows :
Project loan - ODDO BHF SE, Frankfurt, Germany
358,540,451
236,117,255
Term loan-Agrani Bank PLC
1,074,711,583
1,915,856,341
Lease liability
304,064,006
357,442,368
1,737,316,040
2,509,415,964
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Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 169
Amount in Taka
June 30, 2024
June 30, 2023
c. Lease liability
This consists as follows:
Payable in one year
123,256,423
129,655,023
Payable beyond one year
304,064,006
357,442,368
427,320,429
487,097,391
17. Liability for gratuity and WPPF
a. Gratuity payable
Opening balance
1,562,835,224
1,384,751,512
Provisions during the year
283,599,354
238,017,009
1,846,434,578
1,622,768,521
Paid to employees during the year
(75,097,858)
(59,933,297)
1,771,336,720
1,562,835,224
Investment - Gratuity fund
Opening balance
8,008,736
57,318,375
Transfer in
75,742,276
10,000,000
Interest received during the year
94,661
623,658
83,845,673
67,942,033
Paid to employees during the year
(75,097,858)
(59,933,297)
8,747,815
8,008,736
Closing balance
1,762,588,905
1,554,826,488
b. Workers profit participation fund
1,442,831,421
1,289,457,558
3,205,420,326
2,844,284,046
18. Deferred tax liability
Opening balance
2,484,196,990
2,427,208,876
Addition during the Year :
Deferred tax on assets & liabities - Note : 34
54,986,259
58,255,886
Adjustment for deferred tax on revalued amount
(1,124,118)
(1,267,772)
Closing balance
2,538,059,131
2,484,196,990
a. Project loan - ODDO BHF SE, Frankfurt, Germany
This represents an amount of EUR 2.67 million out of an approved amount of EUR 17.78 million (amended from originally approved EUR 24.88
million) ECA term loan availed to date. The loan has availability period up to December 2025. It bears interest at a rate of 6-month Euribor plus
a margin of 1.3% per annum. The loan is secured by an exclusive first charge through hypothecation of the machinery and equipment procured
under the loan and is repayable over five years through half-yearly installments starting from June 2025.
b. Term loan-Agrani Bank PLC
The Company availed a Term Loan of Taka 3,750 million in 2021-22 repayable over a period of five years from Agrani Bank PLC, Principal Branch
Dhaka to partly finance the acquisition of Synovia Pharma PLC. The loan is being repaid in quarterly installments, and as of the balance sheet date,
11 out of the total 20 installments have been paid. The loan is secured by a lien on the acquired shares of Synovia Pharma PLC.
AUDITED FINANCIALS
170 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Amount in Taka
June 30, 2024
June 30, 2023
19. Short term borrowings
Janata Bank PLC
1,398,893,274
4,474,809,399
AB Bank PLC
516,304,775
505,552,356
First Security Islamic Bank PLC
299,641,234
497,141,234
Loan from Nuvista Pharma Ltd.
500,000,000
400,000,000
Liability for UPAS letter of credit
-
269,132,312
2,714,839,283
6,146,635,301
a. Short term borrowings from Janata Bank represents revolving credit facilities renewable annually.
b. Loan from AB Bank PLC 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 PLC 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.
20. Long term borrowings-current maturity
Project loan - ODDO BHF SE, Frankfurt, Germany
330,502,647
621,801,668
Term loan-Agrani Bank PLC
795,200,000
664,500,000
Lease liability
123,256,423
129,655,023
1,248,959,070
1,415,956,691
21. Trade and other payables
Goods & services
819,376,226
801,452,349
Provident fund
1,716,111,464
1,450,986,422
Advance against sales
75,703,363
149,408,697
Others
437,912,889
308,098,008
3,049,103,942
2,709,945,476
22. Accrued expenses
This is unsecured, falling due within one year and consists of as follows :
Operating expenses
231,859,803
332,227,456
Workers’ Profit Participation Funds - (current year)
356,833,550
294,866,618
588,693,353
627,094,074
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 171
23. Dividend payable
The dividend payable as on June 30, 2024 consists of Tk. 16,866,595 relating to year 2022-23 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. 16,795,907 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.
Amount in Taka
June 30, 2024
June 30, 2023
24. Income tax payable
Opening Balance
427,314,018
91,665,863
Provision for current year
1,482,596,810
1,239,940,051
Income tax short/(excess) provision
(11,425,498)
11,127,508
1,898,485,330
1,342,733,422
Income tax paid
(1,474,257,387)
(915,419,404)
424,227,943
427,314,018
July 2023 - June 2024
July 2022 - June 2023
25. Net revenue
Domestic sales
33,962,412,415
30,238,890,754
Export sales
2,936,616,399
2,752,964,666
36,899,028,814
32,991,855,420
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 2023 - June 2024
July 2022 - June 2023
Tablet, Capsule, Suppository & DPI
Million pcs.
8,475.35
7,672.74
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable,Inhaler and Insulin
Million pcs.
165.50
144.87
Active Pharmaceutical Ingredients
Kg
93,006
67,532
Liquid Nitrogen
Liter
146,737
179,448
b. The value of Export Sales in equivalent US Dollar is 26,463,699 in 2023-24 as against US Dollar 27,330,603 in 2022-23.
AUDITED FINANCIALS
172 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Amount in Taka
July 2023 - June 2024 July 2022 - June 2023
26. Cost of goods sold
This is made-up as follows :
Work-in-process (opening)
803,580,144
610,859,802
Materials consumed (Note: 27)
15,436,446,566
14,992,146,672
Factory overhead (Note: 28)
5,315,256,272
4,935,917,537
Total manufacturing cost
21,555,282,982
20,538,924,011
Work-in-process (closing)
(1,134,373,481)
(803,580,144)
Cost of goods manufactured
20,420,909,501
19,735,343,867
Finished goods (opening)
2,654,584,197
1,754,268,113
Finished goods available
23,075,493,698
21,489,611,980
Cost of physician sample transferred to sample stock
(340,292,521)
(363,610,489)
Finished goods (closing)
(2,089,048,952)
(2,654,584,197)
20,646,152,225
18,471,417,294
Finished goods stock comprises as follows :
Quantity
Product category
Unit
June 30, 2024
June 30, 2023
Tablet, Capsule, Suppository & DPI
Million pcs.
846.45
1,152.63
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution, Injectable, Inhaler and Insulin
Million pcs.
10.36
13.98
Active Pharmaceutical Ingredients
Kg
21,806
13,913
Total value
Taka
2,089,048,952
2,654,584,197
27. Materials consumed
This is made-up as follows :
Opening stock
5,296,238,615
5,389,571,553
Purchase
15,864,943,915
14,898,813,734
Closing stock
(5,724,735,964)
(5,296,238,615)
15,436,446,566
14,992,146,672
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Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 173
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
28. Factory overhead
Salaries and allowances
Repairs and maintenance
Insurance premium
Canteen expenses
Municipal tax and land revenue
Registration and renewals
Travelling and conveyance
Entertainment
Research and development
Rent
Printing and stationery
Telephone, cellphone, internet and postage
Toll expense
Electricity, gas and water
Training and conference
Plant certification and regulatory approvals
Depreciation
Security expenses
Other expenses
1,690,902,047
518,581,491
50,993,826
73,069,434
3,946,236
4,529,445
36,268,708
600,188
310,993,909
15,806,381
20,599,499
8,483,942
384,888,918
639,696,564
12,934,518
30,847,016
1,474,630,836
29,425,368
8,057,946
1,594,366,688
429,242,602
42,328,137
70,744,357
5,960,026
8,470,371
35,736,593
1,043,698
318,736,340
9,628,020
21,034,294
8,854,188
280,195,247
476,067,335
12,216,914
28,630,624
1,560,048,243
24,916,985
7,696,875
5,315,256,272
4,935,917,537
a. Salaries and allowances include company’s contribution to provident fund amounting to Tk. 31,996,269
b. Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures. Also included
therein, imported stores and spares that has been consumed during the year.
c. Other expenses does not include any item exceeding 1% of total revenue.
29. General and administrative expenses
Salaries and allowances
Rent
Repairs and maintenance
Canteen expenses
Registration and renewals
Travelling and conveyance
Entertainment
Printing and stationery
Audit fee
Telephone, cellphone, internet and postage
Electricity, gas and water
Legal and consultancy
Company secretarial, regulatory fee and AGM expense
Municipal tax and land revenue
Training and conference
Depreciation
Meeting fee
Security expenses
Other expenses
550,258,205
37,032,618
100,684,628
17,768,953
15,751,464
36,495,928
7,607,927
3,786,682
2,250,000
3,970,443
23,112,802
37,639,453
45,480,338
683,160
19,418,511
43,852,997
2,783,000
19,004,342
53,860,312
509,229,573
27,191,452
79,568,159
16,098,445
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
1,021,441,763
903,653,034
a. Salaries and allowances include company’s contribution to provident fund amounting to Tk 10,401,061
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.
AUDITED FINANCIALS
174 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
30. Selling, marketing and distribution expenses
Salaries and allowances
2,720,890,619
2,460,882,234
Rent
162,879,942
151,801,583
Repairs and maintenance
64,421,553
51,332,512
Canteen expenses
40,676,018
37,857,507
Travelling and conveyance
707,037,010
661,523,842
Entertainment
74,421,868
79,309,202
Printing and stationery
67,755,085
52,486,520
Telephone, cellphone, internet and postage
62,847,311
89,590,784
Software and licenses
42,395,791
31,653,863
Electricity, gas and water
30,318,739
24,607,743
Market research and new products
55,312,836
82,785,246
Training and conference
168,817,340
182,172,504
Insurance premium
32,523,811
27,066,247
Sample expense
412,107,823
423,097,133
Advertisement
295,118
440,081
Field operation
63,920,843
55,498,404
Events, programs and campaign
331,830,255
330,962,450
Brand development
198,288,480
182,943,502
CSR expenses
9,740,326
9,933,118
Sales promotion expenses
192,585,380
170,392,623
Books, journal and periodicals
7,154,355
7,538,568
Salesforce logistics
21,919,327
27,098,354
Clinical studies and research
1,993,953
2,910,043
Pharmacovigilance
35,352,917
24,633,191
Literature and news letter
282,860,049
275,783,634
Registration and renewals
162,660,759
144,905,253
Export insurance, freight and C & F expenses
148,535,807
143,336,060
Distribution commission
694,714,653
613,597,539
Delivery expense
547,857,488
491,888,971
Depreciation and amortization
147,606,595
135,915,602
Security expenses
22,013,841
20,398,163
Bad debts
4,558,501
2,524,220
Other expenses
11,793,549
13,148,302
7,528,087,942
7,010,014,998
a. Salaries and allowances include company’s contribution to provident fund amounting to Tk. 58,403,733
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.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 175
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
31. Other income
Interest income
231,977
205,684
Dividend
60,996,524
41,985,413
Royalty
97,089,221
88,455,727
Distribution commission income
426,655,938
355,890,287
Cash incentive on export
279,538,769
267,842,723
Exchange rate fluctuation gain / (loss)
8,945,454
66,693,332
Forfeited PF refund
296,580
605,926
Profit/(Loss) on sale of fixed assets (Note 41)
18,085,451
10,366,617
891,839,914
832,045,709
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, which has been reduced
to 8% from february 2024 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 87,504,854 has arisen
from the translation of outstanding foreign currency loan from ODDO BHF SE, Frankfurt, Germany translated at the exchange rate prevailing on
the financial position date.
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
32. Finance cost
Interest on bank borrowings
677,529,232
852,970,585
Interest on lease finance
44,531,984
52,360,188
Interest on loan from PF and WPPF
343,912,750
300,393,065
Bank and other charges
35,708,282
40,892,994
1,101,682,248
1,246,616,832
33. Contribution to WPPF
This represents statutory contribution by the Company as per Bangladesh Labour Act 2006. The amount is computed @ 5% of net profit before
tax (after charging such contribution).
AUDITED FINANCIALS
176 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
34. Income tax expenses
This consists of as follows :
a. Current tax
Provision for current year
1,482,596,810
1,239,940,051
Short/(excess) provision for prior year(s)
(11,425,498)
11,127,508
1,471,171,312
1,251,067,559
b. Deferred tax expense
54,986,259
58,255,886
Total
1,526,157,571
1,309,323,445
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
13,060,582,296
(1,762,588,905)
(17,730,587)
11,280,262,804
22.5%
2,538,059,131
2,484,196,990
53,862,141
1,124,118
12,608,874,084
(1,554,826,488)
(13,172,086)
11,040,875,510
22.5%
2,484,196,990
2,427,208,876
56,988,114
1,267,772
Deferred tax charged to profit or loss and other comprehensive income
54,986,259
58,255,886
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
35. Other comprehensive income/(expense)
Fair value gain/(loss) on investment in listed shares
-
(2,383,527)
-
(2,383,527)
Reconciliation of effective tax rate
2023-24
2022-23
%
Tk.
%
Tk.
Profit before tax
7,136,671,000
5,897,332,353
Applicable tax
22.50%
1,605,750,975
22.50%
1,326,899,779
Effect of lower rate on export profit excluding cash incentive
-0.97%
(69,358,322)
-1.03%
(60,689,630)
Effect of lower rate on cash incentive
-0.49%
(34,942,346)
-0.57%
(33,480,340)
Effect of lower rate on dividend income
-0.02%
(1,524,913)
-0.02%
(1,049,635)
Effect of permanent disallowances
0.85%
60,898,867
1.10%
65,107,667
Short/ (Excess) provision of prior year
-0.16%
(11,425,498)
0.19%
11,127,508
Deferred tax impact & others
-0.33%
(23,241,192)
0.02%
1,408,096
Income tax expense
21.38%
1,526,157,571
22.20%
1,309,323,445
a. Export profits are subject to 12% tax rate
b. 10% Tax deductible at source on the cash incentives are treated as final tax liability on such income as per the Income Tax regulations.
c. Dividend income is taxable @ 20%
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 177
June 30, 2024
June 30, 2023
37. Net asset value (NAV) per share
Total assets
Less total liabilities
Net assets
Number of shares
62,984,537,875
(15,593,053,498)
47,391,484,377
446,112,089
62,593,798,296
(19,252,559,154)
43,341,239,142
446,112,089
Net asset value (NAV) per share
106.23
97.15
July 2023 - June 2024
July 2022 - June 2023
38. Net operating cash flow per share (NOCFPS)
Net cash generated from operating activities
7,790,756,528
5,782,185,344
Number of ordinary shares
446,112,089
446,112,089
Net operating cash flows per share (NOCFPS)
17.46
12.96
39. Reconciliation of net profit with cash flows from operating activities
Profit after tax
5,610,513,429
4,588,008,908
Adjustment to reconcile net profit to net cash provided by operating activities :
Non-cash/ non-operating items:
1,709,488,864
1,916,941,494
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
1,584,263,329
81,827,099
54,986,259
87,504,854
(60,828,670)
(18,085,451)
(20,178,556)
1,662,039,452
74,720,877
58,255,886
233,844,494
(41,985,413)
(10,366,617)
(59,567,185)
Changes in working capital
470,754,235
(722,765,058)
(Increase)/decrease in inventories
(Increase)/decrease in spares and supplies
(Increase)/decrease in Trade and other receivables
(Increase)/decrease in Loans, advances, deposits and prepayments
Increase/(decrease) in Gratuity & WPPF
Increase/(decrease) in Trade and other payables
Increase/(decrease) in Accrued expenses
Increase/(decrease) in Income tax payable
(373,983,302)
(39,711,417)
34,619,582
184,222,426
361,136,280
345,957,462
(38,400,721)
(3,086,075)
(1,149,298,500)
(96,875,694)
(893,809,410)
(138,826,708)
361,437,398
808,279,502
50,680,199
335,648,155
Net cash generated from operating activities
7,790,756,528
5,782,185,344
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
36. Earnings per share (EPS)
a. Earnings attributable to the ordinary shareholders
5,610,513,429
4,588,008,908
b. Weighted average number of shares outstanding during the year (Note 3.15)
446,112,089
446,112,089
Earnings per share (EPS)
12.58
10.28
AUDITED FINANCIALS
178 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
40. Related party disclosures
Following transactions were carried out with related parties in the normal course of business on arms length basis:
Name of related parties
Nature of transactions
Value of transaction
Balance at year end
Balance type
a. I & I Services Ltd.
Delivery of products
Distribution commission
39,402,148,411
694,714,653
1,565,922,825
Dr.
b. Nuvista Pharma Ltd
Short term borrowings
100,000,000
500,000,000
Cr.
Toll manufacturing expenses
Finance cost
Cost of goods & services
Royalty
Dividend
Distribution commission
40,649,809
47,852,778
118,320,941
30,999,279
40,053,896
207,499,960
70,040,932
Dr.
c. Synovia Pharma PLC
Toll manufacturing
Cost of goods & services
Dividend
Distribution commission
277,614,493
376,865,852
19,632,410
219,155,978
126,125,791
Dr.
d. Beximco Pharma API Limited
Short term advance
250,000
995,350
Dr.
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, 2024:
Particulars of assets
Cost
Accumulated
depreciation
Written down
value
Sales price
Profit / (loss)
Mode of disposal
Plant & machinery
14,794,851
12,372,542
2,422,309
2,533,871
111,562
Negotiation
Transport & vehicle
49,989,590
43,732,483
6,257,107
24,230,996
17,973,889
Negotiation
Tk.
64,784,441
56,105,025
8,679,416
26,764,867
18,085,451
42. Payment / perquisites to managers and directors
The aggregate amounts paid to/ provided for the managers and above of the company is disclosed below :
Amount in Taka
Remuneration
Gratuity
Contribution to provident fund
Bonus
Others
509,926,731
55,612,512
22,766,336
56,212,682
32,519,068
Total
677,037,329
a. The above includes salary, allowances, and perquisites amounting Tk. 46,279,055 paid to the Managing Director.
b. No remuneration is paid to directors of the board other than meeting attendance fees which has been separately reported.
c. No amount of money was expended by the company for compensating any member of the board for special services rendered.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 179
43. Production capacity and utilization
Item
Unit
Production capacity
Actual production and capacity utilization
June 2024
June 2023
July 23 to June 24
July 22 to June 2023
Quantity
Quantity
Quantity
%
Quantity
%
Tablet, Capsule, Suppository & DPI
Million Pcs
7,823.38
7,592.49
8,044.88
102.83%
8,033.38
105.81%
Liquid, Cream and Ointment,
Suspension, IV Fluid, Amino Acid,
Ophthalmic, Nebulizer Solution,
Injectable, Inhaler and Insulin
Million Pcs
154.06
153.05
158.49
102.88%
141.25
92.29%
Active Pharmaceuticals Ingredient
Matric Ton
22.00
22.00
9.66
43.91%
3.42
15.55%
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, 2024.
45. Claim not acknowledged as debt
There was no claim against the Company not acknowledged as debt as on June 30,2024.
46. Un-availed credit facilities
ODDO BHF SE, Frankfurt, Germany approved an ECA term loan of Euro 17.78 million (amended from originally approved amount of EUR 24.88).
The loan is to be utilized for the procurement of machinery and equipment predominantly for the replacement and maintenance and partly for the
expansion of the Company’s manufacturing facilities. The loan’s availability period extends until December 2025. The Loan disbursable directly
to the suppliers of the machinery and equipment, bears interest at the rate 6 months Euribor plus a margin of 1.3% p.a. and is repayable over
five years by half-yearly installments commencing from June 2025. As of the Balance Sheet date, EUR 2.67 million has been disbursed and the
remaining EUR 15.11 million is to be availed within the availability period.
47. Foreign currency payments & receipts :
Foreign currency (Equivalent US$)
Taka
Payments :
Materials, spares and capital machinery
104,888,495
11,599,060,733
Foreign currency loans, fees & expenses
11,526,467
1,317,709,295
Receipts :
Foreign Currency (US$)
Taka
Export sales & others
28,627,237
3,166,285,551
AUDITED FINANCIALS
180 | Beximco Pharmaceuticals Limited (Stand-alone) | Annual Report 2023-24
49. Contingent liability
a. The Company has contingent liabilities aggregating Tk. 143,447,442 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. If any liability
arises on disposal of the cases, the Company shall provide for such liability in the year of disposal.
b. There is 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. If any liability arises on disposal of the cases, the Company
shall provide for such liability in the year of disposal.
c. The Company has provided corporate guarantees to Dhaka Bank Limited for funded and non-funded working capital facilities upto Taka 105
Crore for Nuvista Pharma and Taka 100 Crore for Synovia Pharma. Both the companies are subsidiaries of Beximco Pharma. The liabilities are
primarily secured by fixed and floating assets of the respective companies.
50. Events after the reporting period
a. The Board of Directors of the Company recommended 40% cash dividend (i.e. Tk. 4.00 per share of Tk 10 each) for the year 2023-24. The
dividend proposal is subject to shareholders’ approval at the forthcoming Annual General Meeting.
b. The Board of Directors of Nuvista Pharma Limited (NPL) recommended 50% cash dividend (i.e. Tk. 5.00 per share of Tk 10 each) for the year
2023-24. The proposed dividend is subject to approval of the shareholders of NPL in the forthcoming Annual General Meeting.
c. The Board of Directors of Synovia Pharma PLC (SPP) recommended 10% cash dividend (i.e. Tk 10.00 per share of Tk 100 each) for the year
2023-24. 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, 2024 a 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.
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.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharmaceuticals Limited (Stand-alone) | 181
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. The Company’s borrowings
carry variable interest rates. This exposes the Company to interest rate risks.
Moreover, benchmark rates for foreign loans, such as SOFR and EURIBOR exposes the Company to interest rate risk on overseas borrowing.
To mitigate the interest rate 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 Company’s current foreign currency borrowing is not significant to the extent that any upward changes in the benchmark rates would
materially impact on its profitability.
The Company has not entered into any type of derivative instrument in order to hedge interest rate risk as at the reporting date.
However, considering the Company’s revenues and operating profit, the amount of borrowings and consistent growth, the impact of interest rate
changes on domestic borrowing amounts is not significant and not a matter of concern.
Iqbal Ahmed
Managing Director
Mohammad Ali Nawaz
Chief Financial Officer
Osman Kaiser Chowdhury
Director
Dhaka
October 28, 2024
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 addition to strong operating cash flows, the Company has sufficient
working capital limit to support is liquidity requirements in any situation.
AUDITED FINANCIALS
182 | Nuvista Pharma Limited | Annual Report 2023-24
Financial Statements
Nuvista Pharma Limited
For the year ended June 30, 2024
182 | Nuvista Pharma Limited | Annual Report 2023-24
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 183
REPORT OF THE DIRECTORS
Dear Shareholders,
It is with great privilege that I present the Directors’ Report for Nuvista Pharma Limited, along with the Audited Financial Statements for the year
ended 30 June 2024, and the accompanying Auditor’s Report.
Operational and Financial Highlights
Despite challenging macroeconomic conditions, Nuvista Pharma successfully navigated the external environment to maintain a strong growth
trajectory and deliver commendable results across its operational and financial metrics.
During the year under review, the Company achieved a robust 14.7% growth in sales revenue, reaching Tk. 3,478.2 million, compared to Tk. 3,033.7
million in the previous year. This performance was largely driven by the impressive growth of our key therapeutic segments, many of which delivered
double-digit growth, underscoring the resilience of our portfolio and strategy.
We continued to expand and enrich our product offerings by launching 20 new products in 25 presentation forms and strengths in 2023-24.
These new products quickly gained traction, contributing Tk. 126.5 million in revenue within their first year. Products introduced in 2022-23 also
maintained strong momentum, further strengthening our competitive position.
The Company achieved an operating profit of Tk. 432.0 million in 2023-24, reflecting a 9.4% year-on-year growth compared to Tk. 395.0 million in
the prior year. Net profit after tax, however, rose by 32.2% to Tk. 349.3 million, up from Tk. 264.3 million in the previous year. This remarkable increase
was driven by higher interest income from the short-term investment of surplus cash and a reduction in the applicable tax rate. Consequently,
Earnings Per Share (EPS) rose to Tk. 29.72, compared to Tk. 22.49 in the prior year, while the Net Asset Value (NAV) per share increased to Tk.
155.91 from Tk. 130.19.
2023-24
2022-23
Growth
Net revenue
3,478.2
3,033.7
14.7%
Gross profit
1,684.4
1,485.0
13.4%
Operating profit
432.0
395.0
9.4%
Profit before tax
443.7
391.3
13.4%
Profit after tax
349.3
264.3
32.2%
Earnings per share (Tk.)
29.72
22.49
32.2%
2023-24
2022-23
Net profit after tax
349,252.7
264,256.3
Transferred from general reserve
7,512.0
-
Unappropriated profit brought forward
1,135,621.8
918,366.1
Profit available for appropriation
1,492,386.5
1,182,622.4
Proposed dividend:
Cash dividend
(58,750.8)
(47,000.6)
Unappropriated profit carried forward
1,433,635.7
1,135,621.8
Profit and its Appropriation
Sales and Profit Snapshot
Amount in Thousand Taka
Amount in Million Taka
Composition of the Board
The Board of Director consists as follows:
: Chairman
: Managing Director
: Director
: Nominee Director, Ministry of Industries
: Independent Director
Mohammad Ali Nawaz
S. M. Rabbur Reza
Afsar Uddin Ahmed
Mohammad Salauddin
Prof. Mamtaz Uddin Ahmed
AUDITED FINANCIALS
184 | Nuvista Pharma Limited | Annual Report 2023-24
Retirement and Re-election of Directors
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.
Mr. Afsar Uddin Ahmed was appointed as Director of the Company on 20 August 2024. As per provision of the Companies Act 1994, he retires in
this AGM and being eligible offer himself for reelection as Director of the Company.
The Board recommends their reappointment as Directors of the Company.
Change of Name of the Company
The Board of Directors, in its meeting held on 20 October 2024, decided to change the name of the Company from “Nuvista Pharma Limited” to
“Nuvista Pharma PLC” to comply with the provisions of the Companies Act, 1994 (as amended in 2020) and to reflect this change in the relevant
clauses of the Memorandum and Articles of Association of the Company. A Special Resolution is to be passed at the AGM as a Special Business item,
seeking approval for the name change from the shareholders of the Company.
Auditors
The existing auditors A. Qasem & Co., Chartered Accountants, who were appointed as auditors of the Company in the 49th AGM of the Company
carried out the audit for the year ended 30 June 2024.
A. Qasem & Co., Chartered Accountants, the auditors of the Company retires at this meeting and have expressed their willingness to continue in the
office for the fiscal year 2024-25 subject to the approval of the shareholders in the AGM. The Board of directors recommends for reappointment of
A. Qasem & Co., Chartered Accountants as auditors of the Company for the year 2024-25.
On behalf of the Board,
Mohammad Ali Nawaz
Chairman
20 October, 2024
Dividend
The Board of Directors recommends 50% cash dividend i.e. Taka 5 per share of Taka 10 each for the year ended 30 June 2024 subject to the
approval of the Shareholders in the Annual General Meeting (AGM) of the Company.
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 185
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 2024, 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 2024, and
its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the
Companies Act 1994 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the ethical requirement that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
AUDITED FINANCIALS
186 | Nuvista Pharma Limited | Annual Report 2023-24
•
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)
we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our
audit and made due verification thereof;
(b)
in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination of
those books; and
(c)
the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in agreement
with the books of account and returns.
A. Qasem & Co.
Chartered Accountants
Enlistment Registration No. FRC: CAF-001-129
_____________________________
Mohammad Motaleb Hossain, FCA
Partner
Enrolment Number: 0950
DVC: 2410210950AS810812
Dhaka, 20 October 2024
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 187
Nuvista Pharma Limited
Statement of financial position
As at 30 June 2024
Amount in Taka
Notes
30 June 2024
30 June 2023
ASSETS
Non-current assets
1,067,268,238
1,130,819,222
Property, plant and equipment
Intangible assets
4
5
1,048,136,738
19,131,500
1,119,294,449
11,524,773
Current assets
1,713,667,804
1,325,780,642
Inventories
Spares and supplies
Trade and other receivables
Loans, advances, deposits and prepayments
Short term investment
Cash and cash equivalents
6
7
8
9
10
11
635,707,764
65,622,483
142,689,757
107,562,691
700,000,000
62,085,109
565,921,597
47,829,104
79,194,346
95,634,587
400,000,000
137,201,008
TOTAL ASSETS
2,780,936,042
2,456,599,864
EQUITY AND LIABILITIES
Shareholders’ equity
1,831,961,581
1,529,709,511
Share capital
Share premium
Revaluation surplus
General reserve
Pre-incorporation profit
Retained earnings
12
13
14
15
117,501,600
30,844,170
190,985,607
-
243,737
1,492,386,467
117,501,600
30,844,170
190,985,607
7,511,991
243,737
1,182,622,406
Non-current liabilities
265,360,283
265,061,235
Long term borrowings-net of current maturity
Liability for gratuity
Deferred tax liabilities
16
17
18
-
228,837,373
36,522,910
5,743,430
193,019,251
66,298,554
Current liabilities
683,614,178
661,829,118
Short term borrowings
Long term borrowings-current maturity
Trade and other payables
Accrued expenses
Dividend payable
Income tax payable
19
20
21
22
23
224,743,065
5,801,184
289,163,755
158,296,435
570,328
5,039,411
245,846,466
7,071,660
253,334,956
128,263,289
539,838
26,772,909
Total liabilities
948,974,461
926,890,353
TOTAL EQUITY AND LIABILITIES
2,780,936,042
2,456,599,864
The annexed notes 1 to 37 form an integral part of these financial statements.
As per our report of same date
Mohammad Ali Nawaz
Chairman
S. M. Rabbur Reza
Managing Director
Dhaka, 20 October 2024
Afsar Uddin Ahmed
Director
A. Qasem & Co.
Chartered Accountants
Enlistment Registration No. FRC: CAF-001-129
Mohammad Motaleb Hossain, FCA (Partner)
Enrolment Number: 0950
DVC: 2410210950AS810812
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Nuvista Pharma Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Amount in Taka
Notes
30 June 2024
30 June 2023
Net revenue
24
3,478,214,975
3,033,677,226
Cost of goods sold
25
(1,793,833,678)
(1,548,646,950)
Gross profit
1,684,381,297
1,485,030,276
Operating expenses
(1,252,411,328)
(1,090,122,122)
General and administrative expenses
26
(149,572,762)
(138,619,310)
Selling, marketing and distribution expenses
27
(1,102,838,566)
(951,502,812)
Profit from operations
431,969,969
394,908,154
Other income
28
65,880,216
31,711,678
Finance cost
29
(32,050,037)
(15,778,049)
Profit before tax and WPPF
465,800,148
410,841,783
Contribution to WPPF
(22,180,959)
(19,563,894)
Profit before tax
443,619,189
391,277,889
Income tax expense
(94,366,479)
(127,021,592)
Current tax
30
(124,142,123)
(141,704,025)
Deferred tax income/(expense)
30
29,775,644
14,682,433
Profit after tax
349,252,710
264,256,297
Other comprehensive income/(loss)
-
-
Total comprehensive income
349,252,710
264,256,297
Earnings Per Share (EPS)
29.72
22.49
The annexed notes 1 to 37 form an integral part of these financial statements.
As per our report of same date
Mohammad Ali Nawaz
Chairman
S. M. Rabbur Reza
Managing Director
Dhaka, 20 October 2024
Afsar Uddin Ahmed
Director
A. Qasem & Co.
Chartered Accountants
Enlistment Registration No. FRC: CAF-001-129
Mohammad Motaleb Hossain, FCA (Partner)
Enrolment Number: 0950
DVC: 2410210950AS810812
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Nuvista Pharma Limited
Statement of changes in equity
For the year ended 30 June 2024
Amount in Taka
Particulars
Share
capital
General
reserve
Share
premium
Pre-
incorporation
profit
Revaluation
reserve
Retained
earnings
Total
Balance as at 1 July 2023
117,501,600
7,511,991 30,844,170
243,737 190,985,607 1,182,622,406 1,529,709,511
Cash dividend
(47,000,640)
(47,000,640)
Transferred to retained earnings
(7,511,991)
7,511,991
-
Profit after tax for the year ended 30 June 2024
349,252,710
349,252,710
Balance as at 30 June 2024
117,501,600
-
30,844,170
243,737 190,985,607 1,492,386,467 1,831,961,581
Number of shares
11,750,160
Net assets value per share
155.91
Balance as at 1 July 2022
117,501,600
7,511,991 30,844,170
243,737 162,337,766
965,366,749 1,283,806,013
Transferred from deferred tax
28,647,841
28,647,841
Cash dividend
(47,000,640)
(47,000,640)
Profit after tax for the year ended 30 June 2023
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 1,529,709,511
Notes
12.0
15.0
13.0
14.0
Number of shares
11,750,160
Net assets value per share
130.19
The annexed notes 1 to 37 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 2024
Amount in Taka
Notes
30 June 2024
30 June 2023
Cash flows from operating activities
Cash receipts from customers and others
3,423,697,611
3,068,159,879
Cash paid to suppliers and employees
(2,969,494,593)
(2,511,261,552)
Cash generated from operation
454,203,018
556,898,327
Interest paid
22 & 29
(32,413,736)
(11,926,377)
Interest received
28
58,505,357
19,612,039
Income tax paid
23
(145,875,621)
(122,714,308)
Net cash generated from operating activities
334,419,018
441,869,681
Cash flows from investing activities
Acquisition of property, plant and equipment
(34,745,687)
(142,605,253)
Short term investment
(300,000,000)
(400,000,000)
Disposal of property, plant and equipment
191,485
4,938,230
Net cash used in investing activities
(334,554,202)
(537,667,023)
Cash flows from financing activities
Net increase /(decrease) long term borrowings
16
(5,743,430)
(7,071,660)
Net increase /(decrease) short term borrowings
19 & 20
(22,373,877)
105,929,974
Dividend paid
(46,970,150)
(46,930,838)
Net cash (used in)/from financing activities
(75,087,457)
51,927,476
Net increase/(decrease) in cash and cash equivalents
(75,222,641)
(43,869,866)
Opening cash and cash equivalents
137,201,008
180,824,117
Effect of exchange rate changes on cash and cash equivalents
106,742
246,757
Closing cash and cash equivalents
62,085,109
137,201,008
Net operating cash flows per share
28.46
37.61
Number of shares
11,750,160
11,750,160
The annexed notes 1 to 37 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 2024
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 Organon’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 operational headquarters of the Company is located at Mirpur DOHS Cultural Center (6th. Floor), Road No. 9, Mirpur DOHS, Pallabi,
Dhaka-1216, Bangladesh and its registered office is at 17 Dhanmondi R/A, Road No. 2, Dhaka-1205, 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 20 October 2024.
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.
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.
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2.8 Reporting period
These financial statements cover one year from 1 July 2023 to 30 June 2024.
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.
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.
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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:
Building and other constructions
2.5%-7.5%
Plant and machinery
5%-7.5%
Transport and vehicle
20%
Office equipment
5%-30%
Furniture and fixtures
6%-7.5%
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 and ERP & software. 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 2024.
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 2024.
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.
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3.9 Income tax
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, packing materials, materials in transit, work-in-process and finished goods. 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 Comparatives and reclassification
Comparative information have been disclosed in respect of 2022-23 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 confirm to current year’s presentation.
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4. Property, plant and equipment
Amount in Taka
Land
Building
and other
constructions
Plant
and
machinery
Transport
and vehicle
Office
equipment
Furniture
and fixtures
Total
Cost or valuation
As at 1 July 2023
275,608,713
278,850,858
1,206,287,364
152,094,906
81,213,584
92,859,965
2,086,915,390
Addition/transfer during the year
-
-
19,893,808
3,525,000
5,344,456
3,241,476
32,004,740
Adjustment/disposal
-
(1,419,256)
(18,755,591)
(8,129,800)
(3,654,282)
-
(31,958,929)
As at 30 June 2024
275,608,713
277,431,602
1,207,425,581
147,490,106
82,903,758
96,101,441
2,086,961,201
Accumulated depreciation
As at 1 July 2023
-
86,230,863
712,720,047
130,278,344
39,978,547
24,529,538
993,737,339
Charge during the year
-
7,503,228
63,027,739
6,736,200
8,348,069
5,347,423
90,962,659
Adjustment/disposal
-
(648,886)
(17,674,817)
(8,129,745)
(3,604,066)
-
(30,057,514)
As at 30 June 2024
-
93,085,205
758,072,969
128,884,799
44,722,550
29,876,961
1,054,642,484
Net book value as at 30 June 2024
275,608,713
184,346,397
449,352,612
18,605,307
38,181,208
66,224,480
1,032,318,717
Capital work-in-progress (Note 4.3)
15,818,021
Carrying value as at 30 June 2024
1,048,136,738
As at 30 June 2023
275,608,713
192,619,995
493,567,317
21,816,562
41,235,037
68,330,427
1,093,178,051
Capital work-in-progress (Note 4.3)
26,116,398
Carrying value as at 30 June 2023
1,119,294,449
4.1 Allocation of depreciation:
30 June 2024
30 June 2023
Factory overhead (Note 25.2)
75,473,585
74,289,770
General and administrative expenses (Note 26)
9,677,045
2,897,606
Selling, marketing and distribution expenses (Note 27)
5,812,029
8,552,391
90,962,659
85,739,767
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.
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4.3 Capital work-in-progress
Amount in Taka
As at 1 July 2023
Addition during
the year
Transfer to property,
plant and equipment
As at 30 June 2024
Building and other constructions
-
9,323,250
-
9,323,250
Plant and machinery
16,012,183
10,376,396
19,893,808
6,494,771
Transport and vehicle
-
3,525,000
3,525,000
-
Office equipment
-
5,344,456
5,344,456
-
Furniture and fixtures
-
3,241,476
3,241,476
-
ERP & software
10,104,215
-
10,104,215
-
26,116,398
31,810,578
42,108,955
15,818,021
5. Intangible assets
Trade name &
trademarks
ERP & software
Total
Cost
Balance as at 1 July 2023
14,870,674
-
14,870,674
Addition during the year
-
10,104,215
10,104,215
Balance as at 30 June 2024
14,870,674
10,104,215
24,974,889
Amortization
Balance as at 1 July 2023
3,345,901
-
3,345,901
Amortized during the year (Note 26 & 27)
1,487,067
1,010,421
2,497,488
Balance as at 30 June 2024
4,832,968
1,010,421
5,843,389
Net carrying value as at 30 June 2024
10,037,706
9,093,794
19,131,500
Net carrying value as at 30 June 2023
11,524,773
-
11,524,773
The above intangible assets are amortized over 10 years.
Amount in Taka
As at
30 June 2024
30 June 2023
6. Inventories
Finished goods
Work-in-process
Raw materials
Packing materials
Laboratory consumables
Materials-in-transit
188,641,498
90,387,983
307,399,517
45,922,115
2,862,615
494,036
148,047,552
73,278,156
291,441,216
47,097,880
-
6,056,793
635,707,764
565,921,597
7. Spares and supplies
Spares and accessories
Literature and other materials
24,022,765
41,599,718
18,193,154
29,635,950
65,622,483
47,829,104
AUDITED FINANCIALS
198 | Nuvista Pharma Limited | Annual Report 2023-24
Amount in Taka
As at
30 June 2024
30 June 2023
8. Trade and other receivables
Trade receivables
127,887,280
71,105,457
Other receivables
14,802,477
8,088,889
142,689,757
79,194,346
Ageing of the trade receivables is as follows:
Receivables due below six months
64,852,271
71,069,044
Receivables due over six months
63,035,009
36,413
127,887,280
71,105,457
Trade receivables is net off provision for bad debts Tk. 3,497,456. Receivables are unsecured but considered good.
9. Loans, advances, deposits and prepayments
Vehicle loan
26,982,807
24,293,694
General loan
977,336
2,214,981
Advance for expenses
1,427,933
2,648,455
Security deposits
9,433,911
12,420,559
VAT
28,489,674
23,101,095
Prepayments
4,341,510
4,913,638
LC margin
34,478,861
22,351,773
Others
1,430,659
3,690,392
107,562,691
95,634,587
10. Short term investment
Balance as at 1 July
400,000,000
-
Addition during the year
300,000,000
400,000,000
Balance as at 30 June
700,000,000
400,000,000
The Company has invested its surplus fund Tk. 50.00 crore with Beximco Pharmaceuticals Limited under corporate loan agreement at a com-
petitive interest rate which was approved by the Board of Directors. The Company has also invested Tk. 20.00 crore in FDR with Dhaka Bank
PLC, Utara Branch.
11. Cash and cash equivalents
Cash in hand
82,763
8,651
Cash in foreign currency account
1,232,356
1,227,784
Cash at other bank accounts
60,769,990
135,964,573
62,085,109
137,201,008
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 199
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. Share premium
This represents the amount received on 48,959 ordinary shares issued in 1997 at a premium of Tk. 630 each.
14. Revaluation reserve
Revaluation reserve relates to surplus arising from revaluation of land.
15. General reserve
General reserve being amount available for distribution has been transferred to retained earnings in the current year.
16. Long term borrowings-net of current maturity
Dhaka Bank PLC (Note 16.1)
5,801,184
12,815,090
Less: Current portion (Note 20)
(5,801,184)
(7,071,660)
-
5,743,430
16.1 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.
Amount in Taka
As at
30 June 2024
30 June 2023
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
1,710,000
1,710,000
11,750,160
117,501,600
117,501,600
Shareholding position
Nominal value (Taka)
Percentage of holding (%)
30 June 2024
30 June 2023
30 June 2024
30 June 2023
Beximco Pharmaceuticals Limited
100,134,740
100,134,740
85.22
85.22
Govt. of Bangladesh (Ministry of Industries)
15,186,000
15,186,000
12.92
12.92
Other shareholders
2,180,860
2,180,860
1.86
1.86
117,501,600
117,501,600
100
100
AUDITED FINANCIALS
200 | Nuvista Pharma Limited | Annual Report 2023-24
Amount in Taka
As at
30 June 2024
30 June 2023
17. Liability for gratuity
Gratuity payable
Balance as at 1 July
204,987,947
180,145,272
Add : Provision made during the year
51,073,575
40,010,531
Add : Liability for transferred employees
2,181,278
-
258,242,800
220,155,803
Less: Payments to outgoing employees
(17,659,555)
(15,167,856)
240,583,245
204,987,947
Investment-gratuity fund
Balance as at 1 July
11,968,696
6,934,450
Add : Amount paid to the Fund
17,181,278
20,000,000
Add: Interest income on gratuity investment
255,453
202,102
Less: Payments to outgoing employees
(17,659,555)
(15,167,856)
11,745,872
11,968,696
Net liability for gratuity
228,837,373
193,019,251
18. Deferred tax liabilities
Balance as at 1 July
66,298,554
109,628,828
Transferred to revaluation reserve
-
(28,647,841)
Deferred tax expense/(income) (Note 30)
(29,775,644)
(14,682,433)
Balance as at 30 June
36,522,910
66,298,554
19. Short term borrowings
Bank overdrafts
Dhaka Bank PLC (Limit Tk. 200,000,000)
112,075,679
22,821,049
Short term bank loans-UPAS
Dhaka Bank PLC
112,667,386
223,025,417
224,743,065
245,846,466
Details of collateral securities against Short term bank borrowings are given in note no-16.1. Short term bank borrowings carry interest @
8.34%-14.55% per annum.
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 201
Amount in Taka
As at
30 June 2024
30 June 2023
20. Long term borrowings-current maturity
Term loan-Dhaka Bank PLC
5,801,184
7,071,660
21. Trade and other payables
Trade payables
250,506,132
222,857,737
Provident fund dues
9,028,424
3,788,419
Advance against sales
4,536,041
3,190,088
Others
25,093,158
23,498,712
289,163,755
253,334,956
22. Accrued expenses
Operating expenses
90,627,858
102,833,094
Audit fees
500,000
450,000
Accrued interest
3,886,744
4,250,443
Salary and allowances
41,100,874
1,165,858
Workers’ profit participation fund
22,180,959
19,563,894
158,296,435
128,263,289
23. Income tax payable
Balance as at 1 July
26,772,909
7,783,192
Add: Income tax provision for current year
133,237,939
134,858,390
Provision for prior years
(9,095,816)
6,845,635
Less: AIT and treasury deposits for current year
(108,596,836)
(120,300,664)
For prior years
(37,278,785)
(2,413,644)
Balance as at 30 June
5,039,411
26,772,909
July 2023- June 2024 July 2022- June 2023
24. Net revenue
Domestic sales
3,406,493,826
2,953,314,794
Export sales
21,736,625
10,282,239
Toll income
49,984,524
70,080,193
3,478,214,975
3,033,677,226
Quantitative details of sales
Unit
Quantity
Quantity
Tabs
480,896,953
349,933,889
Caps
42,080,868
41,318,955
Amps, Suspensions and Cream
17,688,314
16,442,714
Bottles
3,825
11,345
AUDITED FINANCIALS
202 | Nuvista Pharma Limited | Annual Report 2023-24
Amount in Taka
July 2023-June 2024
July 2022-June 2023
25. Cost of goods sold
Opening work-in-process
73,278,156
50,867,317
Materials consumed (Note 25.1)
1,170,179,227
929,443,680
Factory overhead (Note 25.2)
696,001,293
647,905,999
Total manufacturing cost
1,939,458,676
1,628,216,996
Closing work-in-process
(90,387,983)
(73,278,156)
Cost of goods manufactured
1,849,070,693
1,554,938,840
Opening stock of finished goods
148,047,552
154,016,608
Finished goods available
1,997,118,245
1,708,955,448
Cost of physician sample
(14,643,069)
(12,260,946)
Closing stock of finished goods
(188,641,498)
(148,047,552)
1,793,833,678
1,548,646,950
25.1 Materials consumed
Opening stock
338,539,096
331,953,724
Purchase
1,184,961,763
936,029,052
Closing stock
(353,321,632)
(338,539,096)
1,170,179,227
929,443,680
Finished goods stock comprises as follows:
Stock as June 30, 2024
Unit
Quantity
Tabs
pcs.
55,294,844
50,502,931
Caps
pcs.
4,815,169
4,477,527
Amps, Suspensions and Cream
pcs.
1,268,671
919,373
Bottles
pcs.
1,620
12,207
Total value
Taka
188,641,498
148,047,552
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 203
Amount in Taka
July 2023-June 2024 July 2022-June 2023
25.2 Factory overhead
Salaries and allowances
Repair and maintenance
Electricity, gas and water
Factory supplies and lab consumables
Canteen expenses
Insurance premium
Security services
Toll expense
Research and development
Printing and stationery
Entertainment
Municipal tax and land revenue
Travelling and conveyance
Overseas travelling expenses
Training and conference
Depreciation (Note 4.1)
Other expenses
261,709,465
110,988,291
97,282,645
39,468,557
21,492,938
4,371,606
2,468,674
22,426,607
44,699,376
2,422,874
2,200,043
1,542,830
2,458,988
293,659
200,693
75,473,585
6,500,462
241,798,930
117,120,320
77,088,749
43,649,291
18,095,980
5,180,755
2,331,816
10,372,480
42,155,691
2,185,283
2,003,871
2,490,732
2,376,100
102,793
180,790
74,289,770
6,482,648
696,001,293
647,905,999
a. Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 2,750,306.
b. Repair 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.
26. General and administrative expenses
Salaries and allowances
Rent
Travelling and conveyance
Entertainment
Repairs and maintenance
Telephone, cellphone, internet and postage
Electricity, gas and water
Canteen expenses
Insurance premium
Audit fee
Legal and professional expenses
Training and conference
Printing and stationery
Overseas travelling expenses
Meeting fee
Security services
Depreciation and amortization (Note 4.1& 5)
Other expenses
87,043,559
11,418,905
1,684,567
1,725,307
19,002,989
1,757,436
1,866,964
6,904,772
217,122
500,000
336,500
625,772
694,437
188,888
456,000
1,217,097
10,687,466
3,244,981
79,827,750
15,693,942
1,492,483
1,141,625
19,203,312
2,538,684
2,169,353
6,311,178
144,426
450,000
294,500
1,011,542
1,256,892
239,779
456,000
949,982
2,897,606
2,540,256
149,572,762
138,619,310
a. Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 1,405,973.
b. Meeting fees relates to Board meeting attendance fee paid to Directors.
c. Repair and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
AUDITED FINANCIALS
204 | Nuvista Pharma Limited | Annual Report 2023-24
Amount in Taka
July 2023-June 2024 July 2022-June 2023
27. Selling, marketing and distribution expenses
Salaries and allowances
Travelling and conveyance
Entertainment
Sample expense
Sales promotion expenses
Brand development
Market research and new products
Sales force logistic
Field operation
Books, journal and periodicals
Royalty expenses
Literature and news letter
Distribution commission
Event, program and campaign
Training and conference
Advertisement
Repairs and maintenance
Telephone, cellphone, internet and postage
Printing and stationery
Registration and renewals
Insurance premium
Export insurance, freight and C&F expenses
Rent
Bad debts
Electricity, gas and water
Overseas travelling expenses
Depreciation and amortization (Note 4.1& 5)
Other expenses
475,228,120
126,973,939
4,342,379
19,267,196
23,810,032
10,018,099
15,684,188
25,788,600
10,882,009
2,812,439
30,999,279
65,319,833
207,499,960
12,373,938
14,252,051
1,310,130
13,771,555
14,458,939
3,367,078
2,258,347
960,539
312,790
9,323,230
505,711
353,711
-
7,299,096
3,665,378
416,966,810
110,457,569
3,916,076
17,515,633
19,827,301
7,558,223
13,050,398
22,455,070
9,144,659
3,583,892
26,993,787
45,066,414
179,845,848
9,646,404
11,735,314
2,813,841
10,126,049
12,688,237
2,041,587
1,902,383
1,832,557
389,184
7,764,072
530,867
619,499
41,750
10,039,458
2,949,930
1,102,838,566
951,502,812
a. Salaries and allowances include Company’s contribution to provident fund amounting to Tk. 11,388,101.
b. Sample expense includes VAT on sample.
c. Repair and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
28. Other income
Gain/(loss) on disposal of property, plant and equipment
(1,709,930)
1,065,521
Rental income
866,400
866,400
Cash incentive on export
1,824,700
988,800
Interest on short term investment
61,955,555
22,377,778
Other interest income
1,438,690
5,323,150
Exchange rate fluctuation gain/(loss)
(50,266)
250,751
Sale of miscellaneous items
1,511,073
784,460
Forfeited PF refund (Note: 28.1)
43,994
54,818
65,880,216
31,711,678
28.1 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.
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 205
Amount in Taka
July 2023-June 2024 July 2022-June 2023
29. Finance cost
Long term borrowings
1,023,446
1,446,863
Short term borrowings
30,534,411
13,969,716
Bank charges
492,180
361,470
32,050,037
15,778,049
30. Income tax expense
Current tax (Note 23)
124,142,123
141,704,025
Deferred tax (income)/expense
(29,775,644)
(14,682,433)
94,366,479
127,021,592
Deferred tax (income)/ expense is arrived as follows:
Property, plant & equipment (Difference in book value and tax base)
378,426,468
417,006,176
Liability for gratuity
(228,837,373)
(193,019,251)
Allowance for expected credit loss
(3,497,456)
(2,991,744)
Temporary difference
146,091,639
220,995,181
Tax rate
25%
30%
Deferred tax liabilities at end of the year
36,522,910
66,298,554
Deferred tax liabilities at beginning of the year
66,298,554
109,628,828
Transferred to revaluation reserve
-
(28,647,841)
Deferred tax charged to profit or loss and other comprehensive income
(29,775,644)
(14,682,433)
Reconciliation of effective tax rate
2023-24
2022-23
%
Taka
%
Taka
Profit before tax
443,619,189
391,277,889
Applicable tax rate
25.00%
110,904,797
30.00%
117,383,367
Effect of lower rate on export profit
-0.08%
(341,658)
-0.06%
(239,247)
Effect of lower rate on cash incentive
-0.06%
(273,705)
-0.05%
(197,760)
Effect of non deductible expenses
0.95%
4,222,619
0.83%
3,229,597
Effect of temporary difference
4.22%
18,725,886
3.75%
14,682,433
Tax impact of prior year adjustment
-2.05%
(9,095,816)
1.75%
6,845,635
Deferred tax impact
-6.71%
(29,775,644)
-3.75%
(14,682,433)
21.27%
94,366,479
32.46%
127,021,592
AUDITED FINANCIALS
206 | Nuvista Pharma Limited | Annual Report 2023-24
Amount in Taka
July 2023-June 2024
July 2022-June 2023
31. Reconciliation of net profit with cash flows from operating activities
Profit after tax
349,252,710
264,256,297
Adjustments to reconcile net profit to net cash with operating activities:
Non-cash expenses
Depreciation
90,962,659
85,739,767
Amortization
2,497,488
1,487,067
Effect of exchange rate fluctuation on cash and cash equivalents
(106,742)
(246,757)
Deferred tax
(29,775,644)
(14,682,433)
63,577,761
72,297,644
Non-operating items
(Profit)/Loss on sale of property, plant and equipment
1,709,930
(1,065,521)
1,709,930
(1,065,521)
Changes in working capital
(Increase)/decrease in inventories
(69,786,167)
(28,125,270)
(Increase)/decrease in spares and supplies
(17,793,379)
5,959,572
(Increase)/decrease in trade and other receivables
(63,495,411)
23,695,292
(Increase)/decrease in loans, advances, deposits and prepayments
(11,928,104)
(22,883,157)
Increase/(decrease) in liability for gratuity
35,818,122
19,808,429
Increase/(decrease) in trade and other payables
38,763,908
86,683,159
Increase/(decrease) in accrued expenses
30,033,146
2,253,519
Increase/(decrease) in income tax payable
(21,733,498)
18,989,717
(80,121,383)
106,381,261
Net cash generated from operating activities
334,419,018
441,869,681
32. Capacity utilization
Installed
capacity
Unit
Actual
production
Unit
Actual
Utilization
%
Amps, Suspensions and Cream
21,622,400
21,168,800
97.90%
Tablets
1,322,390,400
546,179,384
41.30%
Capsules
56,044,880
42,293,479
75.46%
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.
33. Foreign currency payments and receipts
Particulars
July 2023-June 2024
July 2022-June 2023
Foreign currency
(Equivalent USD)
Taka
Taka
Payments:
Import of raw, chemicals and packing materials
7,353,451
842,440,105
601,056,712
Import of machinery, spare parts and others
142,404
16,311,710
43,713,687
858,751,815
644,770,399
Receipts:
Export sales
184,639
20,097,966
13,472,327
AUDITED FINANCIALS
Annual Report 2023-24 | Nuvista Pharma Limited | 207
34. 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 2024
Balance
type
Beximco Pharmaceuticals Limited
Immediate and
ultimate parent
Toll income
Investment income
Advance office rent
40,649,809
47,852,778
-
3,146,658
Dr.
Short term investment
100,000,000
500,000,000
Dr.
Royalty expenses
Distribution commission
Dividend paid
Cost of services/goods
30,999,279
207,499,960
40,053,896
118,320,941
73,187,590
Cr.
Synovia Pharma PLC
Subsidiary of
parent company
Toll expense
5,360,756
1,363,028
Cr.
37. Events after reporting period
The Board in its meeting dated 20 October 2024 recommended that 50% cash dividend i.e. Tk. 5.00 per share, totaling Tk. 58,750,800 be paid
for the year 2023-24. The proposed dividend is subject to approval of the shareholders in the forthcoming annual general meeting.
Mohammad Ali Nawaz
Chairman
S. M. Rabbur Reza
Managing Director
Afsar Uddin Ahmed
Director
35. Capital expenditure commitment
There was no capital expenditure contracted but not incurred or provided for at 30 June 2024.
36. 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.
AUDITED FINANCIALS
208 | Synovia Pharma PLC | Annual Report 2023-24
Financial Statements
Synovia Pharma PLC
For the year ended June 30, 2024
208 | Synovia Pharma PLC | Annual Report 2023-24
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 209
Report of the Directors
Dear Shareholders,
On behalf of the Board of Synovia Pharma PLC, I am pleased to present the Directors’ Report and the audited financial statements for the year ended
June 30, 2024, along with the Auditor’s Report.
Following the change of ownership at the end of 2021, we embarked on a series of strategic initiatives aimed at strengthening our market position.
These efforts included the realignment of our sales strategies, a comprehensive restructuring of our business and operating model, and a focused
effort to expand our market footprint. We reinforced our sales force, ramped up our marketing efforts, and significantly broadened our distribution
network, all of which have enabled us to extend our reach and better serve our growing customer base.
I am pleased to report that, despite macroeconomic challenges, we concluded 2023-24 fiscal year with substantial progress across key areas of the
business. The strategic measures we implemented have started to yield results and have collectively enabled the Company to achieve a successful
turnaround, moving from a loss position to profitability and laying a strong foundation for continued growth.
Financial and Operational Highlights
During the fiscal year 2023-24, the Company achieved impressive net revenues of Taka 4,338.0 million, reflecting a strong 22.9% growth compared
to the previous fiscal year. The significant growth of our leading brands, surpassing industry trends, was a key driver of this sales performance.
The operating profit increased to Taka 171.8 million, reversing a loss of Taka 69.9 million from the previous year, while the post-tax profit rose
to Taka 57.1 million, compared to a loss of Taka 189.3 million. The gross margin improved to 38.0%, up from 35.6% in the previous year. The
improvement was largely driven by the synergy benefits of integrated sourcing and procurement, selective price adjustments for imported finished
products, and the leveraging effect of strong sales growth. These factors helped mitigate rising production and operational costs, including the
impact of currency devaluation and higher energy costs. The operating expenses as a percentage of revenue remain contained at 34.0%, down from
37.6% of the previous year. By meeting the stringent conditions, we were able to avail 25% tax rate, down from 27.5% in earlier period.
Sales and Profit Snapshot
Amount in Million Taka
Particular
FY 2023-24
FY 2022-23
Growth
Net Revenue
4,338.0
3,530.0
22.9%
Gross Profit
1,648.8
1,258.1
31.1%
Operating Profit
171.8
(69.9)
345.9%
Pre-Tax Profit
95.3
(81.3)
217.2%
Net Profit/(loss) after Tax
57.1
(189.3)
130.2%
Earnings Per Share (Tk.)
15.89
(52.65)
130.2%
We continued to strengthen our market position and broaden our product portfolio with the successful introduction of 11new products. Our strategic
initiatives contributed to an improvement in our market ranking, advancing from 22nd last year to 21st this year-a significant leap from our 26th
position just three years ago. In addition, we are making targeted investments to upgrade and expand our facilities, ensuring they align with the
evolving requirements of our business.
Profit/(Loss) and its appropriation
Amount in Thousand Taka
Particulars
FY 2023-24
FY 2022-23
Net Profit/(Loss) Before Income Tax
95,319
(81,338)
Less: Provision for Income Tax
(38,180)
(107,955)
Net Profit After Tax
57,139
(189,293)
Add: Profit Brought forward from previous year
1,199,563
1,424,808
Profit Available for Appropriation
1,256,702
1,235,515
Proposed Dividend
(35,952)
(35,952)
Un-appropriate Profit Carried Forward
1,220,750
1,199,563
AUDITED FINANCIALS
210 | Synovia Pharma PLC | Annual Report 2023-24
Dividend
The Board of Directors has reviewed the Company’s financial performance for the year ended June 30, 2024. After due consideration of the current
business, operational performance, future investment plans and the cash flow position of the Company, the Board proposes 10% Cash Dividend i.e.
Taka 10 per share of Taka 100 each for the year under review. This proposal is placed in this meeting for the approval of the shareholders.
Board Composition
The Board currently consists of six (6) members, including one Independent Director, as detailed below:
Retirement and Re-appointment of Directors
Mr. Md. Saidur Rahman and Mr. Md. Nuruzzaman, Directors of the Board, retire by rotation as per Article 52 and 93 of the Article of Association of
the Company. Both Mr. Md. Saidur Rahman and Mr. Md. Nuruzzaman 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
A. Qasem & Co., Chartered Accountants, located at Pink City Shopping Mall, Plot #15, Road #103, Gulshan Avenue, Dhaka- 1212, were appointed as
Auditors of the Company at the 59th Annual General Meeting and have conducted the audit for the year ended June 30, 2024.
A. Qasem & Co., Chartered Accountants, now retire at this meeting and have expressed their willingness to continue as auditors for the year 2024-
25. After due consideration, the Board has recommended the reappointment of A. Qasem & Co. Chartered Accountants, as the auditors for the FY
2024-25.
Md. Saidur Rahman
Chairman
20 October, 2024
Name of Director
Position in the Board
Md. Saidur Rahman
Chairman
Md. Nuruzzaman
Director
S. M. Rabbur Reza
Director and Chief Executive Officer
Mohammad Ali Nawaz
Director
Absar Uddin Ahmed
Director
Dr. Md. Ibraheem Hosein Khan
Independent Director
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 211
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 2024, 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 2024, 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 2024, 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 the audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the 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.
AUDITED FINANCIALS
212 | Synovia Pharma PLC | Annual Report 2023-24
• 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 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 accounts and returns.
A. Qasem & Co.
Chartered Accountants
FRC Enlistment No: CAF-001-129
____________________
Ziaur Rahman Zia FCA
Partner
Enrolment Number:1259
DVC: 2411041259AS118897
Place: Dhaka
Date: October 20, 2024
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 213
Synovia Pharma PLC
Statement of financial position
As at June 30, 2024
Amount in Taka
Notes
June 30, 2024
June 30, 2023
ASSETS
Non-current assets
1,952,966,375
1,951,850,277
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred tax asset
4
5
6
7
1,827,823,732
27,851,869
36,400,270
60,890,504
1,811,470,233
44,470,619
39,397,344
56,512,081
Current assets
2,018,922,011
2,435,496,288
Inventories
Spares and supplies
Trade and other receivables
Loans, advances, deposits and prepayments
Advance income tax
Cash and cash equivalents
8
9
10
11
12
13
1,157,100,083
29,745,958
217,079,508
284,901,563
295,169,915
34,924,984
1,616,017,852
10,326,074
271,806,701
249,893,477
227,618,388
59,833,796
TOTAL ASSETS
3,971,888,386
4,387,346,565
EQUITY AND LIABILITIES
Shareholders’ equity
2,253,813,570
2,232,626,853
Share capital
Share premium
Reserves and surplus
Retained earnings
14
15
16
359,520,400
633,804,683
3,786,810
1,256,701,677
359,520,400
633,804,683
3,786,810
1,235,514,960
Non-current liabilities
132,977,624
169,134,998
Long term borrowings-net of current maturity
Liability for pension and gratuity fund
17.a
18
20,655,254
112,322,370
35,673,860
133,461,138
Current liabilities
1,585,097,192
1,985,584,714
Short term borrowings
Long term borrowings-current maturity
Trade and other payables
Accrued expenses
Dividend payable
19
17.b
20
21
22
557,077,615
16,039,221
652,106,867
359,655,154
218,335
628,688,504
16,866,817
992,187,495
347,633,221
208,677
TOTAL EQUITY AND LIABILITIES
3,971,888,386
4,387,346,565
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.
Place: Dhaka
Date: October 20, 2024
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
A. Qasem & Co.
Chartered Accountants
FRC Enlistment No: CAF-001-129
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2411041259AS118897
AUDITED FINANCIALS
214 | Synovia Pharma PLC | Annual Report 2023-24
Synovia Pharma PLC
Statement of profit or loss and other comprehensive income
For the year ended June 30, 2024
Amount in Taka
Notes
July 2023 - June 2024
July 2022- June 2023
Net revenue
23
4,337,985,194
3,529,982,189
Cost of goods sold
24
(2,689,153,505)
(2,271,875,490)
Gross profit
1,648,831,689
1,258,106,699
Operating expenses
(1,476,985,676)
(1,327,980,113)
General and administrative expenses
25
(140,874,257)
(131,571,505)
Selling, marketing and distribution expenses
26
(1,336,111,419)
(1,196,408,608)
Profit from operations
171,846,013
(69,873,414)
Other income
27
2,061,755
34,216,105
Finance cost
28
(73,822,660)
(45,681,150)
Profit before tax and WPPF
100,085,108
(81,338,459)
Contribution to WPPF
(4,765,958)
-
Profit before tax
95,319,150
(81,338,459)
Income tax expenses
(38,180,393)
(107,955,415)
Current tax
12
(42,558,816)
(75,827,268)
Deferred tax income/(expenses)
7
4,378,423
(32,128,147)
Profit after tax
57,138,757
(189,293,874)
Other comprehensive income/(loss)
-
-
Total comprehensive income
57,138,757
(189,293,874)
Earnings per share (EPS)
30
15.89
(52.65)
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.
Place: Dhaka
Date: October 20, 2024
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
A. Qasem & Co.
Chartered Accountants
FRC Enlistment No: CAF-001-129
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2411041259AS118897
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 215
Synovia Pharma PLC
Statement of changes in equity
For the year ended June 30, 2024
Amount in Taka
Particulars
Share capital
Share
premium
Reserves and
surplus
Retained
earnings
Total
Balance as at July 1, 2023
359,520,400
633,804,683
3,786,810
1,235,514,960
2,232,626,853
Profit for the year
-
-
-
57,138,757
57,138,757
Dividend paid for 2023
-
-
-
(35,952,040)
(35,952,040)
Balance as at June 30, 2024
359,520,400
633,804,683
3,786,810
1,256,701,677
2,253,813,570
Net asset value (NAV) per share (Note-31)
626.89
For the year ended June 30, 2023
Particulars
Share capital
Share
premium
Reserves and
surplus
Retained
earnings
Total
Balance as at July 1, 2022
359,520,400
633,804,683
3,786,810
1,424,808,834
2,421,920,727
Profit for the year
-
-
-
(189,293,874)
(189,293,874)
Balance as at June 30, 2023
359,520,400
633,804,683
3,786,810
1,235,514,960
2,232,626,853
Net asset value (NAV) per share (Note-31)
621.00
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.
Place: Dhaka
Date: October 20, 2024
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
A. Qasem & Co.
Chartered Accountants
FRC Enlistment No: CAF-001-129
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2411041259AS118897
AUDITED FINANCIALS
216 | Synovia Pharma PLC | Annual Report 2023-24
Synovia Pharma PLC
Statement of cash flows
For the year ended June 30, 2024
Amount in Taka
Notes
July 2023 - June 2024
July 2022 - June 2023
A.
Cash flows from operating activities:
Receipts from customers and others
4,394,774,142
3,718,665,876
Payments to suppliers and employees
(3,971,564,156)
(3,701,340,147)
Cash generated from operations
423,209,986
17,325,729
Interest paid
28
(73,822,660)
(49,760,144)
Interest received
27
-
682
Income tax paid
12
(110,110,343)
(106,810,629)
Net cash generated from operating activities
239,276,983
(139,244,361)
B.
Cash flows from investing activities:
Acquisition of property, plant and equipment
4
(136,158,467)
(232,228,156)
Intangible assets
6
(4,627,855)
(12,549,596)
Disposal of property, plant and equipment
-
4,422,584
Net cash used in investing activities
(140,786,322)
(240,355,168)
C.
Cash flows from financing activities:
Net increase /(decrease) in long term borrowings
17
(15,846,202)
(14,519,847)
Net increase/(decrease) in short term borrowings
19
(71,610,889)
282,353,477
Dividend paid
22
(35,942,382)
-
Net cash from/(used in) financing activities
(123,399,473)
267,833,630
D.
Increase/(decrease) in cash and cash equivalents
(24,908,812)
(111,765,899)
E.
Opening cash and cash equivalents
59,833,796
171,599,695
F.
Closing cash and cash equivalents
34,924,984
59,833,796
Net operating cash flows per share
32
66.55
(38.73)
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.
Place: Dhaka
Date: October 20, 2024
Md. Saidur Rahman
Chairman
Synovia Pharma PLC
S.M. Rabbur Reza
Chief Executive Officer
Synovia Pharma PLC
Md. Golam Rabbani Akondo
Company Secretary
Synovia Pharma PLC
Mohammad Ali Nawaz
Director
Synovia Pharma PLC
A. Qasem & Co.
Chartered Accountants
FRC Enlistment No: CAF-001-129
Ziaur Rahman Zia, FCA (Partner)
Enrolment Number: 1259
DVC: 2411041259AS118897
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 217
Synovia Pharma PLC
Notes to the financial statements
For the year ended June 30, 2024
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
at 6/2/A, Segun Bagicha, Dhaka 1000. The Company has been operating in Bangladesh since 1958 as part of the British chemical company,
May & Baker. Following series of mergers, it was renamed as Sanofi Bangladesh Limited in 2013. In October 2021, Beximco Pharmaceuticals
Limited acquired 54.6% stake of Sanofi Bangladesh Limited held by the Sanofi Group represented through May & Baker and Fisons Limited.
Subsequent to the acquisition, it has been renamed as Synovia Pharma PLC. The Company is now operating as a subsidiary of Beximco
Pharmaceuticals Limited. The 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. Additionally it 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 include:
* Income Tax Act 2023;
* Value Added Tax and Supplementary Duty Act, 2012;
* Value Added Tax and Supplementary Duty Rules, 2016;
* Financial Reporting Act, 2015;
* Labour Act, 2006 as amended to date.
2.2 Basis of measurement
These financial statements have been prepared under historical cost convention following going concern principle.
2.3 Consistency
The accounting policies and methods of computation used in preparation of financial statements for the year ended June 30, 2024 are
consistent with those policies and methods adopted in preparing the financial statements for the year ended June 30, 2023.
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
The Financial statements cover a 12 months’ period starting from July 1, 2023 to June 30, 2024. The last audited financial statements were
prepared for the year ended June 30, 2023.
2.6 Comparatives and reclassification
Comparative information have been disclosed in respect of the twelve month period July-June 2023 and for the year ended June 30,
2024 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 has been prepared in accordance with IAS 7 “Statement of Cash Flows”. The cash generated from the operating
activities has been reported using the direct method.
AUDITED FINANCIALS
218 | Synovia Pharma PLC | Annual Report 2023-24
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 estimates and assumptions
The key assumptions underlying the judgements and estimates made and the related uncertainties may pose significant risk that might
require material adjustment to the carrying amounts of assets and liabilities in future periods. 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 different credit customer categories. The provision matrix is initially based on historically observed default rates and
is 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-10.
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 October 20, 2024.
2.10 Going concern
There is 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
The 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 capitalized and added to the
carrying amount of the 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.
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 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 are as follows:
Asset category
Building & other constructions
Plant and machinery
Furniture and fixtures
Transport & vehicle
Office equipment
Rate %
10
6.67
10
20
10
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 219
3.2 Intangible assets
Initially, the company recognized brand names as intangible assets with indefinite useful life. Later, in 2021,brand names were reassessed
and its useful life have been changed from indefinite to finite useful life in accordance with IAS 8. The Brand names are being amortised over
a period of 9 years while the Software are amortised considering a useful life of 5 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 asset or the end of the lease term. In addition, the right of use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using prevailing interest rate for the leases.
3.4 Inventories
Inventories are carried at the lower of cost and net realizable value as prescribed by IAS 2: 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 certain 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,such as 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.
3.6.1 Financial assets
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 consist mainly of trade and other receivables.
3.6.1.a Trade and other receivables
Trade and other receivables are initially recognized at invoiced value, which is the fair value of the consideration received in return.
After initial recognition, these are carried at cost less impairment losses, if any, due to non-recoverability of any amount so recognized.
3.6.2 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 payables and other financial obligations.
3.6.2.a 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
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 different credit customer categories. 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.
AUDITED FINANCIALS
220 | Synovia Pharma PLC | Annual Report 2023-24
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.
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 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).
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 by weighted average number
of shares outstanding throughout the year. Diluted Earnings Per Share (DEPS) is not applicable for these financial statements as there was
no equity instruments with potential dilution.
3.10 Employee benefits
The Company maintains both defined contribution plan and defined benefit plan for its eligible 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)
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.
Defined contribution plan (Contribution to workers profit participation fund)
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.
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.
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Annual Report 2023-24 | Synovia Pharma PLC | 221
3.11 Income Tax
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, subject to condition, is 25% for the Company as per the Finance Act, 2024.
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 25% 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 parties 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.
3.14 Financial instruments risk management objectives and policies
The Company’s principal financial liabilities comprise trade and other payables arising out of normal course of business. 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 risks, such as equity price risk and commodity risk
The Company has no exposure to the risk of changes in other prices, 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.
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222 | Synovia Pharma PLC | Annual Report 2023-24
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.
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 223
4. Property, plant and equipment
As on June 30, 2024
Amount in Taka
Particulars
Land
Building
and other
constructions
Plant and
machinery
Furniture
and fixtures
Transport
and vehicle
Office
equipment
Total
Cost
As on July 01, 2023
1,124,554,309
1,014,033,365
1,203,974,636
114,080,575
-
214,513,897
3,671,156,782
Additions
-
27,854,661
58,159,459
8,190,240
23,832,000
11,291,053
129,327,413
Transferred from right-of-use-assets
-
-
-
-
45,450,674
-
45,450,674
Cost as on June 30, 2024
1,124,554,309
1,041,888,026
1,262,134,095
122,270,815
69,282,674
225,804,950
3,845,934,869
Accumulated Depreciation
As on July 01, 2023
-
(800,828,665)
(810,838,832)
(79,043,553)
-
(174,458,432)
(1,865,169,482)
Depreciation charged
-
(37,575,752)
(47,684,438)
(6,816,647)
(1,191,600)
(26,536,529)
(119,804,966)
Transferred from right-of-use-assets
-
-
-
-
(45,450,674)
-
(45,450,674)
Accumulated depreciation as on June 30, 2024
-
(838,404,417)
(858,523,270)
(85,860,200)
(46,642,274)
(200,994,961)
(2,030,425,122)
Net book value June 30, 2024
1,124,554,309
203,483,609
403,610,825
36,410,615
22,640,400
24,809,989
1,815,509,747
Capital work in progress 4 (a)
12,313,985
Carrying value as on June 30, 2024
1,124,554,309
203,483,609
403,610,825
36,410,615
22,640,400
24,809,989
1,827,823,732
As on June 30, 2023
Particulars
Land
Building
and other
constructions
Plant and
machinery
Furniture
and fixtures
Transport
and vehicle
Office
equipment
Total
Cost
As on July 01, 2022
1,010,047,500
990,490,085
1,170,833,045
129,772,449
-
291,804,703
3,592,947,782
Additions
114,506,809
11,648,520
43,661,121
5,682,854
-
13,533,055
189,032,359
Transferred and capitalized
-
12,405,970
40,481,745
-
-
7,576,502
60,464,217
Disposal during the year
-
(511,210)
(51,001,275)
(21,374,728)
-
(98,400,363)
(171,287,576)
Cost as on June 30, 2023
1,124,554,309
1,014,033,365
1,203,974,636
114,080,575
-
214,513,897
3,671,156,782
Accumulated depreciation
As on July 01, 2022
-
(764,985,458)
(817,167,857)
(92,772,748)
-
(245,912,884)
(1,920,838,947)
Depreciation charged
-
(36,354,413)
(44,672,090)
(7,234,047)
-
(25,937,387)
(114,197,937)
Adjustment for assets disposed off
-
511,206
51,001,115
20,963,242
-
97,391,839
169,867,402
Accumulated depreciation as on June 30, 2023
-
(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
AUDITED FINANCIALS
224 | Synovia Pharma PLC | Annual Report 2023-24
Amount in Taka
June 30, 2024
June 30, 2023
4(a) Capital work in progress is arrived at as follows:
Opening balance
5,482,933
25,706,353
Addition during the year
6,831,052
43,195,797
12,313,985
68,902,150
Transferred and capitalized
Building and other constructions
-
(12,405,970)
Plant and machinery
-
(40,481,745)
Office equipment
-
(7,576,502)
Intangible assets
-
(2,955,000)
-
(63,419,217)
Closing balance
12,313,985
5,482,933
5. Right-of-use assets
Opening balance
134,704,900
142,355,604
Additions
-
7,415,000
Transferred to freehold assets
(45,450,674)
-
Disposal during the year
-
(15,065,704)
Cost as on June 30
89,254,226
134,704,900
Opening balance
(90,234,281)
(88,540,902)
Depreciation charged
(16,618,750)
(16,759,083)
Transferred to freehold assets
45,450,674
15,065,704
Accumulated depreciation as on June 30
(61,402,357)
(90,234,281)
Closing balance
27,851,869
44,470,619
6. Intangible assets
Particulars
Brand valuation
ERP and softwares
Total
Cost
Opening balance
104,124,112
81,572,920
185,697,032
Additions
-
4,627,855
4,627,855
As on June 30, 2024
104,124,112
86,200,775
190,324,887
Amortization
Opening balance
(84,928,502)
(61,371,185)
(146,299,687)
Amortized during the year
(2,276,156)
(5,348,774)
(7,624,930)
As on June 30, 2024
(87,204,658)
(66,719,959)
(153,924,617)
Carrying value as on June 30, 2024
16,919,454
19,480,815
36,400,270
Carrying value as on June 30, 2023
19,195,610
20,201,734
39,397,344
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 225
Amount in Taka
June 30, 2024
June 30, 2023
7. Deferred tax asset
Opening balance
Deferred tax (expenses)/income
Closing balance of net deferred tax asset
Note- 33.b
56,512,081
4,378,423
60,890,504
88,640,228
(32,128,147)
56,512,081
8.Inventories
Finished goods
Work-in-progress
Raw materials
Packing materials
Material-in-transit
508,306,159
76,443,238
231,425,196
91,932,047
248,993,443
641,879,087
53,183,935
443,817,951
98,734,781
378,402,098
1,157,100,083
1,616,017,852
9. Spares and supplies
Spares and supplies
29,745,958
10,326,074
29,745,958
10,326,074
10. Trade and other receivables
Trade receivables
Other receivables
Aging of Trade receivables:
Amount due within 6 months
Amount due over 6 months
195,720,020
21,359,488
217,079,508
188,418,637
7,301,383
255,585,525
16,221,176
271,806,701
200,810,555
54,774,970
195,720,020
255,585,525
Accounts receivable is reported net of provision for bad debts of TK. 29,199,050.
11. Loans, advances, deposits and prepayments
VAT
Security deposits earnest money
Advance to suppliers
Prepaid insurance
Rent
Motor vehicle advance
Advance for expenses
Others
30,564,762
28,444,659
62,833,577
8,660,705
1,055,856
88,721,284
42,946,876
21,673,844
33,972,109
40,533,917
32,746,965
9,703,807
-
70,133,311
40,094,530
22,708,838
284,901,563
249,893,477
12. Advance income tax
Opening balance
Provision made during the year
Paid during the year
227,618,388
(42,558,816)
110,110,343
196,635,027
(75,827,268)
106,810,629
295,169,915
227,618,388
13. Cash and cash equivalents
Cash at Bank
34,924,984
59,833,796
34,924,984
59,833,796
AUDITED FINANCIALS
226 | Synovia Pharma PLC | Annual Report 2023-24
c) Shareholding position
Shareholding
Quantity
%
Beximco Pharmaceuticals Limited.
1,963,241
54.61%
196,324,100
196,324,100
Ministry of Industries
911,767
25.36%
91,176,700
91,176,700
Bangladesh Chemical Industries Corporation
717,679
19.96%
71,767,900
71,767,900
Other Shareholders
2,517
0.07%
251,700
251,700
3,595,204
100%
359,520,400
359,520,400
Amount in Taka
June 30, 2024
June 30, 2023
14. Share capital
a) Authorized capital
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
602,700
602,700
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)
179,496,700
179,421,000
179,496,700
179,421,000
358,917,700
358,917,700
359,520,400
359,520,400
17. Long term borrowings consist of:
a. Long term borrowings-net of current maturity
b. Long term borrowings-current maturity
20,655,254
16,039,221
35,673,860
16,866,817
36,694,475
52,540,677
Total lease liability is arrived at as follows:
Opening balance
Addition during the year
Payment during the year
52,540,677
-
(15,846,202)
59,645,523
7,415,000
(14,519,846)
Closing Balance
36,694,475
52,540,677
15. Share premium
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.
16. Reserves and surplus
Non-distributable special reserve (Note 16.1)
Capital reserve
3,777,710
9,100
3,777,710
9,100
3,786,810
3,786,810
16.1 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.
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 227
Amount in Taka
June 30, 2024
June 30, 2023
18. Liability for pension and gratuity fund
a.i Pension payable
Opening balance
Paid to employees during the year
5,884,415
(3,605,665)
6,452,939
(568,524)
2,278,750
5,884,415
a.ii Investment/plan asset
Opening balance
Transfer during the year
Paid to employees during the year
550,199
3,476,987
(3,605,665)
1,118,723
-
(568,524)
421,521
550,199
1,857,229
5,334,216
During the transfer of ownership by Sanofi Group in 2021, the eligible current and ex-employees excepting 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. During 2023-24 financial period 8 out of the 14 members expressed their intention to close their pension account. The trustee of the fund
approved their application and their pension dues have been paid fully. Company’s provision is considered adequate to meet up the obligation of
all the remaining members; therefore no additional provision has been made in this financial period.
b.i Gratuity payable
Opening balance
Provision made during the year
Accrued Interest
Paid to employees during the year
236,200,544
12,391,016
4,089,061
(7,902,722)
222,065,152
17,040,500
4,093,721
(6,998,829)
244,777,899
236,200,544
b.ii Investment/plan asset
Opening balance
Transfer during the year
Interest income
Paid to employees during the year
113,308,809
24,933,606
4,089,061
(7,902,722)
103,747,114
12,466,803
4,093,721
(6,998,829)
134,428,754
113,308,809
110,349,145
122,891,735
c. Liability for workers’ profit participation fund
Opening balance
Loan recovery
Transferred during the year
Paid during the year
5,235,187
521,996
(5,191,437)
(449,750)
5,362,937
371,000
-
(498,750)
115,996
5,235,187
Total
112,322,370
133,461,138
AUDITED FINANCIALS
228 | Synovia Pharma PLC | Annual Report 2023-24
Amount in Taka
June 30, 2024
June 30, 2023
19 . Short term borrowings
19.1 Bank overdraft
Dhaka Bank Limited
506,253,032
509,965,518
506,253,032
509,965,518
19.2 Short term loan
Dhaka Bank Limited
50,824,583
118,722,986
50,824,583
118,722,986
Closing balance
557,077,615
628,688,504
Short term borrowing from Dhaka Bank Limited represents revolving credit facilities (overdraft facilities) renewable annually. The borrowing
carries 14.55% 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
652,106,867
992,187,495
652,106,867
992,187,495
21. Accrued expenses
For expenses
354,889,196
347,633,221
WPPF (current year)
4,765,958
-
359,655,154
347,633,221
22. Dividend payable
Opening balance
208,677
208,677
Dividend declared during the year
35,952,040
-
Paid for the year
(35,942,382)
-
218,335
208,677
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 229
Amount in Taka
July 2023- June 2024
July 2022- June 2023
23. Net revenue
Locally manufactured product
Imported finished product
Toll manufactured income
2,630,682,905
1,281,042,520
426,259,769
2,104,696,765
1,037,249,903
388,035,521
4,337,985,194
3,529,982,189
24. Cost of goods sold
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
53,183,935
1,181,662,591
694,658,745
1,929,505,271
(76,443,238)
1,853,062,033
641,879,087
2,494,941,120
708,626,128
(6,107,584)
(508,306,159)
23,081,328
951,878,572
612,031,565
1,586,991,465
(53,183,935)
1,533,807,530
578,007,975
2,111,815,505
804,670,592
(2,731,520)
(641,879,087)
2,689,153,505
2,271,875,490
24.1 Materials consumed
Opening stock
Purchase
Goods available for use
Closing stock
542,552,732
962,467,102
1,505,019,834
(323,357,243)
300,540,096
1,193,891,208
1,494,431,304
(542,552,732)
1,181,662,591
951,878,572
24.2 Factory overhead
Salary and allowances
Repairs and maintenance
Insurance premium
Canteen expenses
Municipal tax
Registration and renewal
Travelling and conveyance
Entertainment
Research and development
Printing and stationery
Telephone, cellphone, internet and postage
Toll expense
Electricity, gas and water
Training and conference
Depreciation and amortization
Security expenses
Other expenses
330,561,012
79,373,683
3,205,999
34,564,558
1,679,074
1,665,545
10,086,767
276,293
3,894,852
6,139,576
2,038,861
17,953,272
99,312,346
448,083
93,059,337
7,274,105
3,125,382
310,432,257
52,785,951
8,509,466
29,669,363
1,303,235
1,482,246
10,480,100
2,037,986
2,127,982
8,487,986
1,664,355
10,484,779
69,491,524
2,468,493
89,738,288
6,914,171
3,953,383
694,658,745
612,031,565
a. Salary and allowance include Company’s contribution to provident fund amounting to Tk. 6,158,947 and gratuity fund amounting to
Tk. 3,591,628
b. Repairs and maintenance includes maintenance of office, premises, vehicle, building, equipment and other infrastructures.
AUDITED FINANCIALS
230 | Synovia Pharma PLC | Annual Report 2023-24
Amount in Taka
July 2023- June 2024
July 2022- June 2023
25 General and administrative expenses
Salary and allowances
Repairs and maintenance
Canteen expenses
Registration and renewal
Travelling and conveyance
Entertainment
Printing and stationery
Audit fees
Telephone, cellphone, internet and postage
Electricity, gas and water
Legal and consultancy
Training and conference
Municipal tax
Depreciation and amortization
Meeting fees
Security expenses
AGM expense
Other expenses
84,867,642
13,885,443
9,608,801
4,829,416
1,513,520
654,709
1,785,980
800,000
814,746
4,183,674
5,546,194
173,476
128,282
3,986,337
915,982
5,845,934
426,572
907,549
83,780,674
7,086,521
7,804,236
2,929,430
1,515,660
564,892
3,392,510
800,000
699,617
3,462,975
5,122,111
388,523
219,329
4,093,187
492,708
5,595,693
386,238
3,237,201
140,874,257
131,571,505
a. Salary and allowance includes Company’s contribution to provident fund amounting to Tk. 1,285,652 and gratuity fund amounting to Tk. 783,320
b. Repairs and maintenance includes maintenance of office, premises, vehicle, building, equipment and other infrastructures.
26. Selling, marketing and distribution expenses
Salary and allowances
Repairs and maintenance
Travelling and conveyance
Entertainment
Printing and stationery
Telephone, cellphone, internet and postage
Software and licenses
Electricity, gas and water
Market research and new products
Training and conference
Insurance premium
Sample expense
Advertisement
Field operation
Events, programs and campaign
Brand development
Sales promotion expenses
Clinical studies and research
Literature and news letter
Salesforce logistics
Registration and renewal
Rent
Distribution commission
Depreciation and amortization
Bad debts
Other expenses
565,579,543
19,672,728
120,270,205
2,065,499
2,138,451
17,974,654
8,580,901
31,923
3,556,421
27,460,997
3,953,265
6,269,476
191,439
1,588,139
127,010,259
76,646,893
23,566,780
1,005,533
39,233,859
4,155,146
2,116,532
4,431,513
219,155,978
47,002,973
12,112,822
339,490
496,054,591
35,417,469
90,957,126
2,574,458
693,554
18,532,351
38,817,769
-
6,150,865
6,674,009
7,512,586
3,859,748
614,177
1,065,765
132,749,378
69,020,407
18,145,231
-
41,419,095
3,090,054
1,443,278
458,414
176,044,438
44,274,880
-
838,965
1,336,111,419
1,196,408,608
a. Salary and allowance includes Company’s contribution to provident fund amounting to Tk. 13,431,714 and gratuity fund amounting to
Tk. 8,050,504
b. Repairs and maintenance includes maintenance of office, premises, vehicle, building, equipment and other infrastructures.
c. Sample expenses include VAT on sample.
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 231
Amount in Taka
July 2023- June 2024
July 2022- June 2023
27. Other income
Interest income
-
682
Profit/(loss) on sale of fixed assets
-
2,383,667
Forfeited PF refund
2,061,755
5,436,254
Rental income
-
26,395,502
2,061,755
34,216,105
Forfeited PF refund
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.
28. Finance cost
Interest on bank borrowings
65,619,005
37,198,497
Interest on finance lease obligation
5,741,000
5,699,323
Bank charges
2,462,655
2,783,330
73,822,660
45,681,150
29. Contingent liability
1. There are contingent liabilities aggregating Taka 364,473,968 for disputed VAT claims lying with honorable High Court. The Company has
provisioned for Taka 49,124,874 in connection with aforesaid. Liability if any, arises in excess of the provisioned amount on disposal of the cases,
shall be accounted for in the year of their final disposal.
2. The Company provided bank guarantees for a total amount of Taka 19,170,102 in favor of “Titas Gas Transmission Distribution Company” and
“Green Delta Insurance Company Limited” in connection with operation of the business.
30. Earnings per share (EPS)
Earnings attributable to the ordinary shareholders
57,138,757
(189,293,874)
Number of share
3,595,204
3,595,204
Earnings per share (EPS)
15.89
(52.65)
31. Net asset value (NAV) per share
Total assets
3,971,888,386
4,387,346,565
Less :Total liabilities
(1,718,074,816)
(2,154,719,712)
Net assets
2,253,813,570
2,232,626,853
Number of shares
3,595,204
3,595,204
Net asset value (NAV) per share
626.89
621.00
AUDITED FINANCIALS
232 | Synovia Pharma PLC | Annual Report 2023-24
Amount in Taka
July 2023- June 2024
July 2022- June 2023
32. Net operating cash flows per share (NOCFPS)
Net cash generated from operating activities
239,276,983
(139,244,361)
Number of ordinary share
3,595,204
3,595,204
Net operating cash flows per share (NOCFPS)
66.55
(38.73)
33. Income tax expenses
This consists of as follows :
a. Current tax
Tax provision for current year
42,558,816
75,827,268
b. Deferred tax expense
Deferred tax expense is arrived at as follows :
Property, plant and equipment ( Difference in book value and tax base)
136,581,852
195,693,431
Deferred liability (gratuity and pension)
(112,206,374)
(128,225,951)
Allowance for bad debts
(29,199,050)
-
Carry forward loss
(238,738,443)
(272,965,958)
Temporary differences
(243,562,015)
(205,498,478)
Tax rate
25.00%
27.50%
Deferred tax liability/(asset) at end of the year
(60,890,504)
(56,512,081)
Deferred tax liability/(asset) at beginning of the year
(56,512,081)
(88,640,228)
Deferred tax expense/(income)
(4,378,423)
32,128,147
Total income tax expense
38,180,393
107,955,415
Reconciliation of effective tax rate:
July 2023- June 2024
July 2022-June 2023
%
Tk
%
Tk
Profit/loss before tax
95,319,150
(81,338,459)
Applicable Tax
25.00%
23,829,788
27.50%
-
Consider minimum tax
(25.00%)
(23,829,788)
-
-
Effect of permanent disallowance
0%
-
-
3,209,980
Effect of minimum tax
44.65%
42,558,816
-
65,358,337
Effect of other income
0%
-
-
7,258,951
Deferred tax impact
(4.59%)
(4,378,423)
-
32,128,147
Income tax expense
40.06%
38,180,393
-
107,955,415
AUDITED FINANCIALS
Annual Report 2023-24 | Synovia Pharma PLC | 233
Amount in Taka
July 2023- June 2024
July 2022- June 2023
34. Reconciliation of net profit with cash flows from operating activities:
Profit after tax
57,138,757
(189,293,874)
Adjustment to reconcile net profit to net cash Generated from Operating Activities :
Non-cash/non-operating items:
139,670,223
167,850,835
Depreciation
136,423,716
130,957,020
Amortization
7,624,930
7,149,335
Gain on disposal of fixed assets
-
(2,383,667)
Deferred tax
(4,378,423)
32,128,147
Changes in working capital
42,468,003
(117,801,322)
Inventories
439,497,885
(560,586,103)
Trade and other receivables
54,727,193
156,851,931
Advance, deposits and prepayments
(35,008,086)
(45,868,324)
Trade and other payables
(340,080,628)
502,508,806
Accrued expenses
12,021,933
(144,170,218)
Gratuity, pension and WPPF
(21,138,767)
4,445,947
Advance income tax
(67,551,527)
(30,983,361)
Net cash generated from operating activities
239,276,983
(139,244,361)
35. Related party disclosures
During the period ended June 30, 2024, the Company entered into the following transactions with its related party:
Name of related parties
Nature of transactions
Value of transaction
Balance as of
June 30, 2024 Balance type
a.Beximco Pharmaceuticals Limited
Toll income
Cost of goods and services
Dividend paid
Distribution commission
277,614,493
376,865,852
19,632,410
219,155,978
126,125,791
Cr.
b.Nuvista Pharma Limited
Toll income
5,360,756
1,363,028
Dr.
36. Foreign currency payment and receipts:
The Company made payments of USD 11,667,718 equivalent to Taka 1,341,787,600 in connection with import of materials, finished products,
machinery, spares and IT related services during the reporting period.
AUDITED FINANCIALS
234 | Synovia Pharma PLC | Annual Report 2023-24
38. Capital expenditure commitment
There is no capital expenditure 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 June 30, 2024 was 1,122 (June 2023: 1,010)
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 2023-24. The
dividend proposal is subject to shareholders’ approval at the forthcoming Annual General Meeting.
37. Factory capacity
July 2023- June 2024
Capacity
Production
Utilization (%)
Tablet , capsule and suppository
Pcs
590,133,667
676,333,212
115%
Dry syrup, injectables and cream
Pcs
20,732,667
24,368,558
118%
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.
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma API Limited | 235
Financial Statements
Beximco Pharma API Limited
For the year ended June 30, 2024
Annual Report 2023-24 | Beximco Pharma API Limited | 235
AUDITED FINANCIALS
236 | Beximco Pharma API Limited | Annual Report 2023-24
DIRECTORS’ REPORT
Dear Shareholders,
I am pleased to place before you the Directors’ Report and the Audited Financial Statements of Beximco Pharma API Limited for the year ended 30
June, 2024 along with the report of the auditors thereon.
Operation
The Company was established with the objective of setting up an API (Active Pharmaceutical Ingredient) manufacturing facility at the API Industrial
Park in Munshiganj. This industrial park was developed by the Government of Bangladesh to promote and support local API manufacturing, aiming
to reduce the country’s reliance on imports. The Company has been allotted two plots in the park; however, we are still in the process of finalizing
viable business projects to be developed on the allocated plots.
Since there was no commercial operation, no operating expense incurred except a few regulatory expenses as reported in the financial statements.
Composition of the Board
AUDITOR
The existing Auditors, M. J. Abedin & Co., Chartered Accountants, who were appointed as the Auditors of the Company have successfully conducted
the audit for the financial year ended 30 June 2024. At this meeting, M. J. Abedin & Co., Chartered Accountants, will retire as the Company’s Auditors.
They did not express their willingness for reappointment as auditors of the Company for the financial year 2024-25.
MABS & J Partners, Chartered Accountants, SMC Tower (Level 5 & 7), Banani C/A, Road 17, Dhaka-1213 expressed their interest in being appointed
as statutory Auditors of the Company for the financial year 2024-25. The Board of Directors proposed to appoint MABS & J Partners, Chartered
Accountants as statutory auditors for the year 2024-25, subject to the approval of the Shareholders in this Annual General Meeting of the Company.
The matter is placed for approval.
On behalf of the Board,
S.M. Rabbur Reza
Managing Director
28 October, 2024
Mohammad Ali Nawaz
Director
S.M. Rabbur Reza
Mohammad Ali Nawaz
Afsar Uddin Ahmed
Mamtaz Uddin Ahmed
: Managing Director
: Director
: Director
: Independent Director
The Board of Director consists as follows:
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma API Limited | 237
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 2024,
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 2024 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.
AUDITED FINANCIALS
238 | Beximco Pharma API Limited | Annual Report 2023-24
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 28, 2024
M.J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS878723
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma API Limited | 239
Beximco Pharma API Limited
Statement of financial position
As at June 30, 2024
Amount in Taka
Notes
June 30, 2024
June 30, 2023
ASSETS
Non-current assets
20,000,000
20,000,000
Advance against purchase of land
20,000,000
20,000,000
Current assets
15,905
2,115
Cash and cash equivalents
4
15,905
2,115
TOTAL ASSETS
20,015,905
20,002,115
EQUITY AND LIABILITIES
Shareholders’ equity
17,847,229
18,083,439
Share capital
5
20,000,000
20,000,000
Retained earnings
(2,152,771)
(1,916,561)
Current liabilities
2,168,676
1,918,676
Short term advance
995,350
745,350
Trade and other payables
1,153,326
1,153,326
Accrued expenses
20,000
20,000
TOTAL EQUITY AND LIABILITIES
20,015,905
20,002,115
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
October 28, 2024
Mohammad Ali Nawaz
Director
M. J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Per our report of even date.
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS878723
AUDITED FINANCIALS
240 | Beximco Pharma API Limited | Annual Report 2023-24
Beximco Pharma API Limited
Statement of profit or loss and other comprehensive income
For the year ended June 30, 2024
Amount in Taka
Notes
July 2023 - June 2024
July 2022 - June 2023
Net revenue
-
-
Cost of goods sold
-
-
Gross profit/(loss)
-
-
General and administrative expenses
6
(236,210)
(39,325)
Profit/(loss) from operations
(236,210)
(39,325)
Income tax expenses
-
-
Profit/(loss) after Tax
(236,210)
(39,325)
Other comprehensive income/(loss)
-
-
Total comprehensive income/(loss)
(236,210)
(39,325)
Earnings per share(EPS)
(0.12)
(0.02)
Number of shares
2,000,000
2,000,000
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
October 28, 2024
Mohammad Ali Nawaz
Director
M. J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Per our report of even date.
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS878723
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma API Limited | 241
Beximco Pharma API Limited
Statement of changes in equity
For the year ended June 30, 2024
Amount in Taka
Particulars
Share capital
Retained earnings
Total
Balance as on July 01,2023
20,000,000
(1,916,561)
18,083,439
Loss for the year
-
(236,210)
(236,210)
Balance as on June 30, 2024
20,000,000
(2,152,771)
17,847,229
Net asset value (NAV) per share
8.92
For the year ended June 30, 2023
Amount in Taka
Particulars
Share capital
Retained earnings
Total
Balance as on July 01,2022
20,000,000
(1,877,236)
18,122,764
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
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
October 28, 2024
Mohammad Ali Nawaz
Director
M. J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Per our report of even date.
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS878723
AUDITED FINANCIALS
242 | Beximco Pharma API Limited | Annual Report 2023-24
Beximco Pharma API Limited
Statement of cash flows
For the year ended June 30, 2024
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
Cash flows from operating activities:
Cash receipts from customers and others
250,000
15,520
Cash paid to suppliers and employees
(236,210)
(39,325)
Net cash generated from operating activities
13,790
(23,805)
Cash flows from investing activities :
-
-
Cash flows from financing activities :
-
-
Increase/(decrease) in cash and cash equivalents
13,790
(23,805)
Opening cash and cash equivalents
2,115
25,920
Closing cash and cash equivalents
15,905
2,115
Net operating cash flow per share
0.01
(0.01)
The notes are an integral part of the financial statements.
S.M. Rabbur Reza
Managing Director
Dhaka
October 28, 2024
Mohammad Ali Nawaz
Director
M. J. Abedin & Co.
Chartered Accountants
Reg No : CAF-001-111
Per our report of even date.
Hasan Mahmood FCA
Enrollment No : 0564
DVC : 2410310564AS878723
AUDITED FINANCIALS
Annual Report 2023-24 | Beximco Pharma API Limited | 243
Beximco Pharma API Limited
Notes to the financial statements
As at and for the year ended June 30, 2024
1. Reporting entity
1.01 About the company
Beximco Pharma API Limited was 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).
1.02 Nature of business activities
The company intends to set up a facility at API Industrial Park to manufacture Active Pharmaceutical Ingredients (APIs) for domestic and
international markets. However, the Company is still in the initial phase of establishment and has carried out no operational activities.
2. Basis of preparation of financial statements
2.01 Basis of measurement
The financial statements have been prepared under historical cost convention which does not take into consideration the effect of inflation.
2.02 Statement of compliance
The financial statements have been prepared in compliance with the requirements of the Companies Act, 1994 and International Financial
Reporting Standards (IFRSs), and other relevant and applicable local laws and regulations.
2.03 Presentation of financial statements
The financial statements comprise of:
a) Statement of financial position as at June 30, 2024;
b) Statement of profit or loss and other comprehensive Income for the year ended June 30, 2024;
c) Statement of changes in shareholders’ equity for the year ended June 30, 2024.
d) Statement of cash flows for the year ended June 30, 2024 and
e) Notes, comprising summary of significant accounting policies and explanatory information.
2.04 Reporting period
Financial Statements of the company cover the period of 12 months from July 01, 2023 to June 30, 2024.
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.
AUDITED FINANCIALS
244 | Beximco Pharma API Limited | Annual Report 2023-24
Amount in Taka
June 30, 2024
June 30, 2023
4. Cash and cash equivalents
This represents of as follows:
Cash at bank
15,905
2,115
15,905
2,115
5. Share capital
A. Authorized:
100,000,000 ordinary shares of Tk. 10 each
1,000,000,000
1,000,000,000
1,000,000,000
1,000,000,000
B. Issued and paid-up:
2,000,000 ordinary shares of Tk. 10 each paid in cash
20,000,000
20,000,000
20,000,000
20,000,000
C. Composition of shareholding of ordinary shares
No. of shares
% of Shares capital
Beximco Pharmaceuticals Limited
1,999,990
99.999
S.M. Rabbur Reza
10
0.001
Total
2,000,000
100
Amount in Taka
July 2023 - June 2024
July 2022 - June 2023
6. General and administrative expenses
Registration & renewal
212,520
15,520
Audit fees
20,000
20,000
Bank charges
690
805
Other expenses
3,000
3,000
236,210
39,325
S.M. Rabbur Reza
Managing Director
Mohammad Ali Nawaz
Director
Dhaka
October 28, 2024
NOTICE OF THE AGM
Annual Report 2023-24 | Notice of Annual General Meeting | 245
BEXIMCO PHARMACEUTICALS LIMITED
REGISTERED ADDRESS: 17 DHANMONDI, ROAD NO. 2, DHAKA -1205
OPERATIONAL HEADQUARTERS: 19 DHANMONDI, ROAD NO. 7, DHAKA -1205
NOTICE OF THE 48TH ANNUAL GENERAL MEETING
Notice is hereby given that the 48th Annual General Meeting of the Shareholders of Beximco Pharmaceuticals Limited will be held on Sunday, the
29th December, 2024 at 10.30 a.m. Bangladesh time under the Virtual Platform through the Link https://bxpharma.bdvirtualagm.com to transact the
following business:
NOTES:
(1)
The Shareholders whose names appear in the Share Register of the Company or in the Depository Register on the record date i.e. 25
November, 2024 will be entitled to receive the dividend and to attend the Annual General Meeting.
(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 Share Department of the Company at BEL Tower, Level-2, 19 Dhanmondi, Road No.1, Dhaka-1205, no
later than 48 hours before the time fixed for the meeting.
(3)
Annual Report for the year 2023-24 will be sent through e-mail address of the valued Shareholders and will be available in the Website of
the Company at: www.beximcopharma.com.
(4)
The valued 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.
Notice of Annual General Meeting
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended on 30th June, 2024 together with reports of
the Auditors and the Directors thereon.
2. To declare 40% cash dividend as recommended by the Board of Directors.
3. To elect Directors.
4. To approve the appointment of Managing Director.
5. To approve the re-appointment of Independent Director.
6. To appoint Statutory Auditors for the year 2024-25 and to fix their remuneration.
7. To appoint Corporate Governance Compliance Auditors for the year 2024-25 and to fix their remuneration.
SPECIAL BUSINESS:
To pass Special Resolutions to change the name of the Company from “Beximco Pharmaceuticals Limited” to “Beximco Pharmaceuticals
PLC” as per the provision of the Companies Act, 1994 (as amended in 2020) and to effect the change of the name in the relevant Clauses of the
Memorandum and Articles of Association of the Company.
The draft of the Special Resolutions proposed to be passed is given below:
“Resolved that the name of the Company be changed from Beximco Pharmaceuticals Limited to Beximco Pharmaceuticals PLC and the
new name of the Company be incorporated in the Memorandum and Articles of Association of the Company and an amended copy of the
Memorandum and Articles of Association of the Company be and is hereby adopted and the same be filed with the Registrar of Joint Stock
Companies, Dhaka, Bangladesh for record”.
AGENDA
By order of the Board,
(MOHAMMAD ASAD ULLAH, FCS)
EXECUTIVE DIRECTOR & COMPANY SECRETARY
Dated: November 18, 2024
PROXY FORM
Annual Report 2023-24 | Proxy Form | 247
Proxy Form
BEXIMCO PHARMACEUTICALS LIMITED
REGISTERED ADDRESS: 17 DHANMONDI, ROAD NO. 2, DHAKA -1205
OPERATIONAL HEADQUARTERS: 19 DHANMONDI, ROAD NO. 7, DHAKA -1205
I/We ………………………………………………………..of……………………………………………..…………………
………………………being a member of Beximco Pharmaceuticals Limited hereby appoint
Mr./Ms./Miss……………………………………………………………………………...............of…………………………
…………………………………………………………………as my proxy to attend and vote for me on my behalf at the 48th
Annual General Meeting of the Company to be held on Sunday, 29th December, 2024 at 10.30 a.m. under virtual platform and at any
adjournment thereof.
As witness my hand this……………………………...................................day of December, 2024. Signed by the said in
presence…………………………………………………………
………………………………….. ………………………………………………...................................
(Signature of Proxy) Signature of Shareholder(s)
Dated: ……………………….. Register Folio / BOID No.: …………………………………………………..
………………………….....
Dated: ……………………………
(Signature of Witness)
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 BEL Tower, Level-2, 19 Dhanmondi, Road No.1, Dhaka-1205, no later than 48
hours before the time fixed for the meeting.
Signature Verified
…………………………………
Authorised Signatory
Revenue
Stamp
Tk. 100.00
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