Research Paper4

FINANCIAL PERFORMANCE ANALYSIS OF FOUR

SELECTED PHARMACEUTICALS COMPANY IN

BANGLADESH

CHAPTER 1: INTRODUCTION

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Origin of the report:

From education the theoretical knowledge is obtained from courses of study, which is only

the half way of the subject matter. Practical knowledge has no alternative. The perfect

coordination between theory and practice is of paramount importance in the context of the

modern business world in order to resolve the problem between these two areas.

This paper entitled “Financial Performance Analysis of Four Selected Pharmaceuticals

company in Bangladesh” is originated from the fulfillment of the MBA program.

Objective of the report:

The prime objective of the report is to gather practical exposure to the operations and the

financial statement analysis of different Pharmaceuticals Company. The specific objectives of

the study are as follows:

1. The is meant to relate the financial statement analysis theories learnt in class to the

context of a real world scenario to understand their practical implications,

2. To analyze the financial statements of Square Pharmaceuticals Ltd, Renata

Pharmaceuticals Ltd, Beximco Pharmaceuticals Ltd and Ibn Sina Pharmaceuticals

Ltd. To get an insight of the financial performance of the company from the different

perspectives. The analysis is done on the financial statements during the time period

of 2006 to 2010.

Scope of the report:

This report has been focused on the financial performance of Square Pharmaceuticals Ltd, Renata pharma Ltd, Beximco Pharma Ltd and Ibn Sina for the years ending 2006 through 2010 by means of analysis of Income Statements, Balance Sheets and Cash flow Statements. The Ratio, Benchmark, horizontal, Cash Flow Statement and growth analysis of the company’s Income Statement and Balance Sheet for the last five financial years has been portrayed in this report. And finally, it also includes an analysis of the following ratios: Leverage Ratios, Liquidity ratios, Profitability ratios, and Market Ratios.

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Limitation of the report:

There were financial terms that vary from the book and that are individual to each company. Best effort was made to reconcile and interpret them. But some ambiguity may still be left.

Methodology of the study:

A proper method is always necessary for any research work. It helps to organize the

experiences observation, analysis of data information their logical expression in a systematic

process to achieve the ultimate goals & the objectives of the research the methods adopted for

the current research work is presented in a sequential manner. The methodology of the study

is as follows:

Research design:

Descriptive research design has been used. My main target is to describe about something.

Collection of data:

The information required to prepare the report has been collected from secondary sources.

Secondary data has been collected from the related sources of the bank. Those are as follows:

Secondary Sources of data collection:

Book and web materials.

Publications, Magazines and Journal.

Annual reports, Different issues from Balance sheet and profit and loss a/c.

Dhaka Stock Exchange

Data processing:

Data has been processed through gathering, editing, sorting, coding of secondary data.

Collected data has been systematically processed and analyzed by using required tools and it

is be presented in terms of tables, charts, figures, and graphs with written scripts.

Final Report Preparation:

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The final report has been prepared on the basis of the above analysis and the interpretation of

data.

CHAPTER 2: AN OVERVIEW OF THE PHARMACEUTICALS

COMPANY IN BANGLADESH

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OVERVIEW OF SQUARE PHARMACEUTICALS LIMITED

SQUARE today symbolizes a name – a state of mind. But its journey to the growth and

prosperity has been no bed of roses. From the inception in 1958, it has flourished into one of the top line conglomerates in Bangladesh today. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player.

Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously been the market leader since 1985. It was established in 1958 as a partnership and in 1964, Square was converted into a Private Limited Company. In 1991, it was listed in the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) as a Public Limited Company. In 1994, Square commenced Initial Public Offering (IPO) of Square Pharmaceutical Limited shares with authorized capital of Tk 1,000 million.

The company has extended its range of services towards the highway of global market. SPL has pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products since then. This extension in business and services has manifested the credibility of Square Pharmaceuticals Limited.

In 1997, SPL had won the National Export Trophy for exporting pharmaceuticals overseas. Later in 1998, SPL had been awarded with the “ISO-9001 Certificate” for its high product standards. In 2007, SPL has been awarded with “UK-MHRA” Certificate.

Currently, SPL manufactures and markets its own ‘branded generics' for many diseases like AIDS, Cancer, Asthma, Hypertension, Diabetes, both nationally and globally. Many of Square’s products are brand leaders in their respective fields. The company produces pharmaceutical specialties of uncompromising quality. Its comprehensive range of about 120 formulations, cover all major therapeutic groups. Square's products come in tablet, capsule, powder, liquid, cream and suppository and inhaler forms.

In the recent past, the sales of SPL was more than Tk 5 Billion with about 15% market share having a growth rate of about 16%. It currently has 13,009 shareholders and 3001 staff.

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OVERVIEW OF BEXIMCO PHARMACEUTICALS LIMITED:

Beximco Pharma is a leading edge Pharmaceutical company based in Dhaka, Bangladesh and

is acclaimed for its outstanding product quality, world class manufacturing facilities, product

development capabilities and outstanding professional services. Beximco pharma is also the

largest exporter of pharmaceutical products from Bangladesh and received National Export

Trophy ( Gold), the highest National accolade for Export, for record three times. Beximco

pharma is a public limited company. It is established 1976. Its main target manufacturing and

marketing of pharmaceuticals finished formulation product, large volume parenterals and

active pharmaceutical ingredients. Its overseas offices and Associates UK, USA, Pakistan,

Myanmar, Singapore, Kenya, Yemen, Nepal, Vietnam, Combodia and Srilanka. Beximco

authorized capital 2,000 million and Paid up Capital 1,040.97 million. Its number of

shareholders around 49,000. Its number of employees is 2,500 people and is widely

acclaimed for its skilled and talented workforce. Today Beximco pharma is building its

presence across five continents and is the only Bangladeshi company to market

pharmaceutical products in the USA.

OVERVIEW OF RENATA PHARMACEUTICALS LIMITED:

Renate Pharmaceuticals limited main focus customer satisfaction. Renate pharma conform to

the highest ethical standards. It make active efforts to improve the welfare of our community.

Renate cannot grow without leadership in all spheres of our activities. Therefore creating

leaders is a key priority. Renate provide maximum value to our customers and communities

where we live and work. The endurance of a company’s reputation depends upon the quality

of work it does rather than the quantity. Hence, the appreciation of quality must be

instinctive, and our commitment to quality must be total.

OVERVIEW OF IBN SINA PHARMACEUTICALS LIMITED:

The IBN SINA Pharmaceuticals Ltd. was founded on 1983. The industry was established by

the trustee board as a limited company. Then it is converted into public limited company in

1989.Now IBN SINA Trust own 50% share of the industry and public shares the rest

50%.since the beginning IBN SINA was committed to provide high quality health care

services in Bangladesh and within a very short period of time it achieved the target and

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fulfilled the commitment. It has also occupied a very prestigious position in the

pharmaceutical field of Bangladesh for its quality and ethical standard. Now IBN SINA

expanding its business area internationally across the world and has already started exporting.

The is always devoted to ensure the high quality of medicines by implementing state of art

technologies and modern machineries. The IBN SINA Pharmaceutical Industry has become a

reputed Pharmaceutical company in Bangladesh with sufficient expertise and experiences.

Significant Recent Event of the Industry:

The Pharmaceutical Industry plays a vital role in Bangladesh by means of improving general health care standards, providing employment opportunities for thousands of people and having a positive impact on the Balance of Payments of the country by exporting.

The pharmaceutical industry of Bangladesh has made significant progress. Some of the industries are equipped with modern infrastructure facilities and producing pharmaceutical items of international standard. 164 enterprises, out of registered 232 have been manufacturing medicine mainly based on imported raw materials. Among the entrepreneurs a highly professional committed group is endeavoring to upscale the production and export of pharmaceutical items.

The inception of the pharmaceutical industry in Bangladesh dates back to the 1950s when a few multinationals and local entrepreneurs started with manufacturing facilities in the erstwhile East Pakistan. By two decades many top ranking Multi-National Companies (MNCs) established their manufacturing facilities in this part of the world. Pfizer, Glaxo, Fisons, Squibb, Hoechst, May and Baker and Organon were prominent among them.

Before liberation the pharmaceutical sector was largely dependent on import and very few local companies were involved in this sector. The local companies were only taking part in the distribution channel of MNCs. Immediately after liberation the war-torn economy; disrupted infrastructure and deficit in foreign currency aggravated the overall healthcare situation of the country. The pharmaceutical sector remained as an Import based sector during early 70s. In 1981, there were around 160 licensed pharmaceutical manufacturers, but local production was dominated by the 8 multinational companies, which manufactured about 75% of the products.

The pharmaceutical industry has mainly evolved in the last 25 years after the 1982 Drug Ordinance Act was passed, which limited the production of drugs to 150 essential drugs provided by WHO. After the introduction of the Drug (Control) Ordinance of 1982, local companies improved the range and quality of their products and began to emerge as key players in the industry. The Government also fixed the price ceiling for 117 necessary drugs as well as banned import of any medicaments, already being produced in Bangladesh.

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Since the time when pharmaceutical market was largely dominated by the MNCs the pharmaceutical industry has grown from strength to strength. Today nearly 25% of the market share in the pharmaceutical industry is owned by the two local companies- Beximco and Square, and most of the foreign companies are out of the country. At present the market leader is Square Pharmaceuticals which has a market share of around 15%.

In 2010 Bangladesh pharmaceutical market was worth US$ 504Mn. And it is growing at a steady average rate of 17.18%. The Pharmaceutical Sector is the second highest contributor to the National Ex-Chequer and the largest White Collar Labor intensive employment sector of the country. The finished formulation- manufacturing base of Bangladesh is very strong as most of the pharmaceutical companies have their own manufacturing facilities. Unlike most of the import-based countries of South Asia and Africa, 97% of the total demand of Bangladesh is being met by local manufacturing. The remaining 3% basically constitutes import of very specialized products like vaccines, anticancer products etc. Now, among the top 10 pharmaceutical companies of Bangladesh, 8 are local companies. The top two domestic manufacturers, namely Square and Beximco Pharma are having a combined market share of about 25% of the total pharmaceutical market of the country.

Bangladesh is exporting pharmaceutical items to 69 countries. At first, only 1/2 major

company took proactive efforts to initiate export of pharmaceuticals. They stated exporting

bulk drugs as well as finished formulations to some of the less regulated overseas markets

like Myanmar, Sri-Lanka and Nepal. In early 90s, few companies took initiative to explore

some of moderately regulated markets like Russia, Ukraine, Georgia and Singapore. Today,

Bangladesh Pharmaceutical Industry’s 69 export destinations compare favorably to only 17 in

2001.

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CHAPTER 3: RATIO ANALYSIS

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Financial analysis:

This section contains the financial analysis of the selected four Pharmaceuticals Company.

The comparison is made between financial data of the Pharmaceuticals Company for last five

years (i.e. from 2006–2010). This information can be used as a benchmark against which an

individual Pharmaceutical Company asset and liability structure and earnings may be

measured.

Ratio Analysis:

Ratio analysis is a type of analysis that helps to better understand and guide the financial

affairs of the business. A ratio is a mathematical expression and is computed using

information from the balance sheet or income statement. This will help to take quality

business management decision and measure performance of the business.

Financial ratios can be classified according to the information they provide. Each category tells us about different facets of a company's finances and operations. The following types of ratios frequently are used:

Liquidity Ratios: Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. They are of particular interest to those extending short-term credit to the firm. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.

Leverage Ratios: These show the extent of debt used in a company's capital structure. Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.

Profitability Ratios: These use margin analysis and show the return on sales and capital employed. Profitability ratios are used to determine the performance of the companies. These ratios use two sources:

Company’s ability to recover costs and expenses using the income statement.

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The company’s ability to earn income on the assets employed using the balance sheet.

Market Ratios: Market ratios measure investor response to owning a company's stock and also the cost of issuing stock. These ratios relate the firm’s stock price to its earnings and book value per share & indicate what investors think of the company’s past performance and future prospects.

FINANCIAL RATIOS FOR SQUARE PHARMACEUTICALS:

LIQUIDITY RATIOS:

1. CURRENT RATIO

Current ratio = Current assets / Current liabilities

Year Current Asset Current LiabilitiesCurrent Ratio=

Current Asset/Current Liabilities2005-2006 4,031,684,955 2,260,755,481 1.782006-2007 3,682,510,712 2,555,566,286 1.442007-2008 4,411,836,436 3,500,845,103 1.262008-2009 3,843,512,855 2,640,868,554 1.452009-2010 4,774,311,194 2,216,744,401 2.15

Current Ratio

0

0.5

1

1.5

2

2.5

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position. The current ratio of Square Pharmaceuticals is relatively in a stable position, which is encouraging for the investors. In the year 2005-2006 current ratio has been increased. From the years 2006-2007 to 2008-2009, current ratio has been

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more or less steadily increasing. But 2009-2010 current ratio more increased compare to above all the year.

2. QUICK RATIO

Quick ratio = (Current Asset - Inventory) / Current liabilities

YearCurrent Asset -

InventoryCurrent Liabilities

Quick Ratio=Quick Asset/Current Liabilities

2005-2006 2,689,320,477 2,260,755,481 1.192006-2007 2,138,318,914 2,555,566,286 0.842007-2008 2,385,100,114 3,500,845,103 0.682008-2009 1,744,757,624 2,640,868,554 0.662009-2010 2,567,233,112 2,216,744,401 1.16

Quick Ratio

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets. In 2006 & 2010, Quick ratio is more increasing but 2007, 2008 & 2009 Quick ratio is decreasing.

Its current and quick asset seems to insufficient to cover its short-term obligations. However, similar trends for current and quick ratios indicate that inventories are not too high- its other liquid assets are too low.

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PROFITABILITY RATIOS:

4. NET PROFIT MARGIN RATIO

Net Profit Margin Ratio =Net Income/ SalesYear Net Income Sales

Net Profit Margin=Net Income/ Sales

2005-2006 1165864616 6089905396 19.14%2006-2007 1303242840 7500811349 17.37%2007-2008 1,381,863,093 8,257,843,739 16.73%2008-2009 1,890,052,929 9,820,796,568 19.24%2009-2010 2,087,871791 11,462,578,410 18.21%

Net Profit Margin Ratio

15.00%

15.50%

16.00%

16.50%

17.00%

17.50%

18.00%

18.50%

19.00%

19.50%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered. We can see that, In the year 2006 it is increasing, 2007-2008 it is decreasing & 2009-2010 it is again increasing.

But the encouraging part for the investors is that the increase or decrease of percentage has been minimal over the years; as result we can say the NPM has been steady for the last 5 years. This is a very positive sign for the company, although the reason for decline should be investigated.

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4. PAYOUT RATIO

Payout Ratio = Dividend per Share/ Earnings per Share

Pay out Ratio

0

0.2

0.4

0.6

0.8

1

1.2

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Pay out ratio continuously decreasing. In 2006 pay out ratio is highest among the years and after that it is continuously decreasing, lowest payout ratio is in 2010. Pay out ratio has shown the above graph.

LEVERAGE RATIOS

6. TOTAL DEBT RATIOTotal Debt Ratio=Total Liabilities/Total Assets

Year Total Liabilities Total Assets Ratio2005-2006 2896972540 9,298,987,000 0.3122006-2007 3153682392 10,486,940,000 0.3012007-2008 4,286,086,715 12,703,127,420 0.3372008-2009 3,301,845,222 13,251,242,856 0.2502009-2010 3,475,120,453 15,029,500278 0.231

YearCash

DividendEarnings Per

SharePayout Ratio=

Dividend per Share/ Earnings per Share2005-2006 75 77.26 0.802006-2007 50 86.36 0.582007-2008 40 91.57 0.442008-2009 40 125.25 0.322009-2010 35 138.36 0.25

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Total Debt Ratio

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 Total debt ratio is increasing, 2007 it is decreasing, 2008 it is again increasing & it is high among the year. In the year 2009 & 2010 it is decreasing. The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets, meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.

7. ASSET TO EQUITY RATIO

Asset To Equity Ratio=Total Asset/Owners' EquityYear Total Asset Owners Equity Ratio

2005-2006 9,298,987,000 6,402,015,000 1.4532006-2007 10,486,940,000 7,333,258,000 1.4302007-2008 12,703,127,420 8,417,040,705 1.5122008-2009 13,251,242,856 9,949,397,634 1.3312009-2010 15,029,500,278 11,554,379,825 1.300

Asset To Equity Ratio

1.15

1.2

1.25

1.3

1.35

1.4

1.45

1.5

1.55

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

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In the year 2006, 2007 Asset to equity ratio is increasing, In the year 2008 it is increasing high among 5 years. In the year 2009 & 2010 it is also decreasing among the last 5 years. The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions, and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities.

MARKET RATIOS

7. PRICE EARNING RATIO (PER)

Price Earnings ratio = Market Price per share / Earnings per share

YearMarket price per

shareEarnings per share

Price earnings ratio=

Market Price per share / Earnings per share

2005-2006 2276 195.56 11.64

2006-2007 2447 218.61 11.19

2007-2008 4110 154.53 26.60

2008-2009 2935 156.56 18.75

2009-2010 3581 138.36 25.88

Price Earning Ratio

0

5

10

15

20

25

30

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006, 2007 & 2009 Price earning ratio is decreasing. In the year 2007 it is fall down among the 5 years. In the year 2008 & 2010 it is increasing but In the year 2008 it is increasing high among the 5 years. Price-earnings ratio helps investors to judge whether the

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stock is under priced or overprice. A high price earnings ratio means that investors are willing to pay a premium for the company’s stock because is expected to have higher than average future earnings growth. Companies with high P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.

8. Dividend Yield

Dividend yield on common stock = Dividend per share/ Market price per share

YearDividend per

shareMarket price per

share

Dividend yield on common stock=

Dividend per share/ Market price per share

2005-2006 75 2276 3.30%

2006-2007 50 2447 2.04%

2007-2008 40 3300 1.21%

2008-2009 40 2935 1.36%

2009-2010 35 3581 0.98%

In the year 2006 to 2010 Dividend yield on common stock continuously decreasing. In 2006 it is highest among the years and then it is continuously fall down and lowest dividend yield in 2010.

FINANCIAL RATIOS FOR BEXIMCO PHARMA:

LIQUIDITY RATIOS:1. CURRENT RATIO



Current Asset/Current Liabilities2005-2006 3,357,393,266 2,527,420,798 1.332006-2007 2,923,775,458 1,627,972,936 1.802007-2008 2,861,891,654 2,602,032,267 1.092008-2009 6,916,737,893 2,321,451,642 2.982009-2010 6,191,667,831 2,513,157,232 2.46

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Current Ratio

0

0.5

1

1.5

2

2.5

3

3.5

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006-2008 current ratios is decreasing & 2008 is the low ratio among the 5 years. In the year 2009 & 2010 current ratio is increasing & 2009 current ratio is high among the five years. Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position.

2. QUICK RATIO


YearCurrent Asset -



2005-2006 1,602,952,978 2,527,420,798 0.6342006-2007 1,271,295,167 1,627,972,936 0.7802007-2008 1,356,603,561 2,602,032,267 0.5212008-2009 5,193,784,609 2,321,451,642 2.242009-2010 4,207,858,387 2,513,157,232 1.67

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Quick Ratio

0

0.5

1

1.5

2

2.5

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2008 Quick ratio is decreasing & 2008 quick ratio is more decreasing among the 5 years. In the years 2009 & 2010 Quick ratio is increasing but 2009 Quick ratio is more increasing among the 5 years. Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets.

PROFITABILITY RATIOS3. NET PROFIT MARGIN RATIO



2005-2006 470,658,563 3,702,317,159 12.71%2006-2007 353,067,878 3,597,024,812 9.81%2007-2008 545,341,273 4,010,167,059 13.60%2008-2009 624,740,307 4,868,254,915 12.83%2009-2010 1,051,648,808 6,490,847,353 16.20%


0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

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Net Profit Margin ratio is increasing all the 5 years except on in the year 2007 & it is the lowest net profit margin ratio among the 5 years & 2010 is the highest net profit margin ratio among the 5 years. Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered.

4. PAYOUT RATIO


In the year 2006 to 2010 pay out ratio increasing and decreasing. Highest pay out ratio among the years in 2008 and lowest pay out ratio in 2006. Five years pay out ratio above shown the graph.

LEVERAGE RATIOS

5. TOTAL DEBT RATIO

Total Debt Ratio=Total Liabilities/Total AssetsYear Total Liabilities Total Assets Ratio

2005-2006 3,962,592,062 11,912,512,487 0.3322006-2007 3,702,479,293 11,953,418,940 0.3092007-2008 4,369,463,296 14,819,665,441 0.2942008-2009 9,006,226,808 19,891,933,422 0.4522009-2010 5,398,313,058 21,372,399,509 0.252

Total Debt Ratio

0

0.1

0.2

0.3

0.4

0.5

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

YearCash


SharePayout Ratio=


20

In the year 2006, 2007, 2009Total Debt ratio is increasing but 2008 & 2010 it is decreasing. Among the 5 years lowest Total Debt ratio is 2010 & highest Total Debt ratio is 2009. The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.


Asset To Equity Ratio=Total Asset/Owners' Equity

Year Total Asset Owners Equity Ratio2005-2006 11,912,512,487 7,949,920,425 1.502006-2007 11,953,418,940 8,250,939,647 1.452007-2008 14,819,665,441 10,450,202,145 1.422008-2009 19,891,933,422 10,885,706,614 1.832009-2010 21,372,399,509 15,974,086,451 1.34


0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Asset To Equity ratio increasing and also decreasing. Among the 5 years lowest Asset to Equity ratio is 2010 & highest Asset to equity ratio is 2009. The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions,

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and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities

MARKET RATIOS7. PRICE EARNING RATIO (PER)






2005-2006 53.7 4.11 13.06

2006-2007 58.9 2.8 21.03

2007-2008 167.7 3.61 46.45

2008-2009 155.8 3.5 44.51

2009-2010 135.1 5.17 26.13

Price Earning Ratio

0

5

10

15

20

25

30

35

40

45

50

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Price Earning ratio is increasing and also decreasing. Among the 5 years lowest price earning ratio is 2006 and highest price earning ratio is 2008. Price-earnings ratio helps investors to judge whether the stock is under priced or overprice. A high price earnings ratio means that investors are willing to pay a premium for the company’s stock because is expected to have higher than average future earnings growth. Companies with high P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.

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8. Dividend Yield


YearDividend per


share



2005-2006 15 53.7 27.93%

2006-2007 15 58.9 25.46%

2007-2008 30 167.7 17.88%

2008-2009 15 155.8 9.62%

2009-2010 20 135.1 14.80%

Dividend Yield

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Dividend Yield of Common Stock increasing and also decreasing. Among the 5 years in 2006 Dividend Yield of Common Stock is high and in 2009 Dividend Yield of Common Stock is low. Dividend Yield is the rate of return investors get from holding the share. For dividend investors, one of the telling metrics is Dividend Yield. Not all companies pay out dividends, but this ratio can be used for those that do. Older, well-established companies tend to payout a higher percentage and their dividend history can be more consistent.

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FINANCIAL RATIOS FOR RENATA PHARMA

LIQUIDITY RATIOS1. CURRENT RATIO



Current Asset/Current Liabilities2005-2006 979,254,859 658,881,691 1.492006-2007 988,092,820 717,068,650 1.382007-2008 1,506,070,972 1,313,392,836 1.152008-2009 1,643,106,431 1,409,726,600 1.172009-2010 2,063,325,826 1,851,204,608 1.11

Current Ratio

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Current ratio is increasing and decreasing. Among the 5 years in 2006 Current ratio is high and in 2010 Current ratio is low. Five years Current ratio have shown the above graph. Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position.

2. QUICK RATIO


YearCurrent Asset -



2005-2006 340,469,907 658,881,691 0.522006-2007 326,080,675 717,068,650 0.452007-2008 546,656,382 1,313,392,836 0.422008-2009 567,795,850 1,409,726,600 0.402009-2010 767,470,662 1,851,204,608 0.41

24

Quick Ratio

0

0.1

0.2

0.3

0.4

0.5

0.6

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Quick ratio is increasing and decreasing. Among the 5 years in 2006 Quick ratio is high and in 2009 Quick ratio is low. Five years Quick ratios have shown the above graph. Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets.

PROFITABILITY RATIOS

3. NET PROFIT MARGIN RATIO



2005-2006 242,131,637 1,927,731,885 12.56%2006-2007 335,923,107 2,534,174,981 13.25%2007-2008 443,145,804 3,089,746,417 14.34%2008-2009 603,524,452 3,900,732,314 15.47%2009-2010 851,428,532 5,090,318,113 16.73%

25


0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Net Profit Margin ratio is increasing and decreasing. Among the 5 years in 2006 Net Profit Margin ratio is low and in 2010 Net Profit Margin ratio is high. Five years Net Profit Margin ratios have shown the above graph.

Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered.

4. PAYOUT RATIO


YearCash


SharePayout Ratio=


26

Payout Ratio

0

0.1

0.2

0.3

0.4

0.5

0.6

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Payout ratio is increasing and decreasing. Among the 5 years in 2006 Payout ratio is high and in 2010 Payout ratio is low. Five years Payout ratios have shown the above graph.

LEVERAGE RATIO5. TOTAL DEBT RATIO


2005-2006 794,199,946 1,776,512,741 0.452006-2007 877,387,885 2,154,993,391 0.412007-2008 1,500,159,577 3,162,232,934 0.472008-2009 1,644,089,330 3,851,369,286 0.432009-2010 2,142,461,081 5,113,932,025 0.42

Total Debt Ratio

0.38

0.39

0.4

0.41

0.42

0.43

0.44

0.45

0.46

0.47

0.48

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

27

In the year 2006 to 2010 Total Debt ratio is increasing and decreasing. Among the 5 years in 2008 Total Debt ratio is highest and in 2007 Total Debt ratio is lowest. Five years Total Debt

ratios have shown the above graph. The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.



Year Total Asset Owners Equity Ratio2005-2006 1,776,512,741 982,312,795 1.802006-2007 2,154,993,391 1,277,605,506 1.692007-2008 3,162,232,934 1,662,073,557 1.902008-2009 3,851,369,286 2,207,279,956 1.742009-2010 5,113,932,025 2,971,470,944 1.72


1.55

1.6

1.65

1.7

1.75

1.8

1.85

1.9

1.95

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Asset To Equity ratio is increasing and decreasing. Among the 5

years in 2008 Asset To Equity ratio is highest and in 2007 Asset To Equity ratio is lowest. Five years asset To Equity ratios have shown the above graph.

The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions, and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a

28

company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities.

MARKET RATIOS7. PRICE EARNING RATIO (PER)






2005-2006 3,099.25 133.96 23.13

2006-2007 7,491.25 185.85 40.30

2007-2008 7,789.25 239.64 32.50

2008-2009 12,051.50 333.90 36.09

2009-2010 12,942.75 471.06 27.47

Price Earning Ratio

0

5

10

15

20

25

30

35

40

45

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Price Earning ratio is increasing and decreasing. Among the 5 years

in 2006 Price Earning ratio is lowest and in 2007 Price Earning ratio is highest. Five years Price Earning ratios have shown the above graph.

Price-earnings ratio helps investors to judge whether the stock is under priced or overprice. A high price earnings ratio means that investors are willing to pay a premium for the company’s stock because is expected to have higher than average future earnings growth. Companies

29

with high P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.

8. Dividend Yield


YearDividend per


share



2005-2006 70 3,099.25 0.023

2006-2007 70 7,491.25 9.34

2007-2008 75 7,789.25 9.63

2008-2009 85 12,051.50 7.05

2009-2010 85 12,942.75 6.57

Dividend Yield

0

2

4

6

8

10

12

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Dividend Yield is increasing and decreasing. Among the 5 years in 2006 Dividend Yield on common stock is lowest and in 2008 Dividend Yield on common stock is highest. Five years Dividend Yield has shown the above graph. Dividend Yield is the rate of return investors get from holding the share. For dividend investors, one of the telling metrics is Dividend Yield. Not all companies pay out dividends, but this ratio can be used for those that do. Older, well-established companies tend to payout a higher percentage and their dividend history can be more consistent.

FINANCIAL RATIOS FOR IBN SINA PHARMA

30

LIQUIDITY RATIOS1. CURRENT RATIO



Current Asset/Current Liabilities

2005-2006 112,487,404 130,741,1190.86

2006-2007 127,775,501 167,004,222 0.772007-2008 149,908,877 191,629,863 0.782008-2009 220,130,579 264,653,403 0.832009-2010 225,056,867 308,437,653 0.73

Current Ratio

0.65

0.7

0.75

0.8

0.85

0.9

2005-2006 2006-2007 2007-2008 2008-2009 2009-1010

In the year 2006 to 2010 Current ratio is increasing and decreasing. Among the 5 years in

2009 Current ratio is lowest and in 2010 Current ratio is highest. Five years Current ratio has shown the above graph.

Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position.

31

2. QUICK RATIO


YearCurrent Asset -



2005-2006 60,938,187 130,741,119 0.4662006-2007 75,632,803 167,004,222 0.4532007-2008 91,435,547 191,629,863 0.4772008-2009 160,095,107 264,653,403 0.6052009-2010 162,825,166 308,437,653 0.528

Quick Ratio

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Quick ratio is increasing and decreasing. Among the 5 years in 2006 Quick ratio is lowest and in 2010 Quick ratio is highest. Five years Quick ratios have shown the above graph. Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets. Its current and quick asset seems to insufficient to cover its short-term obligations. However, similar trends for current and quick ratios indicate that inventories are not too high- its other liquid assets are too low.

32

PROFITABILITY RATIOS3. NET PROFIT MARGIN RATIO



2005-2006 32,761,931

534,738,092 6.12%

2006-2007 20,539,597 577,427,115 3.55%2007-2008 26,111,294 791,683,415 2.30%2008-2009 43,285,209 1,052,308,721 4.11%2009-2010 49,233,664 1,277,868,846 3.85%


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Net Profit Margin ratio is increasing and decreasing. Among the 5 years in 2007 Net Profit Margin ratio is lowest and in 2010 Net Profit Margin ratio is highest. Five years Net Profit Margin ratios have shown the above graph.

Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered.

33

4. PAYOUT RATIO


Payout Ratio

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Payout ratio is increasing and decreasing. Among the 5 years in 2009 Payout ratio is lowest and in 2006 Payout ratio is highest. Five years Net Payout ratios have shown the above graph.

The payout ratio measures the proportion of earnings that is paid out as dividends. In the above table, we haven’t considered the Stock dividend in our calculation

LEVERAGE RATIOS5. TOTAL DEBT RATIO


2005-2006 130,741,119 159,972,192 0.822006-2007 167,004,222 169,212,064 0.98

2007-2008 231,900,136 397,991,497 0.58

2008-2009 324,977,527 513,654,097 0.75

YearCash


SharePayout Ratio=

Dividend per Share/ Earnings per Share2005-2006 21 22.82 0.922006-2007 23 31.14 0.742007-2008 25 48.09 0.522008-2009 7.5 54.70 0.142009-2010 21 36.40 0.58

34

2009-2010 388,683,160 604,093,394 0.64

Total Debt Ratio

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Total Debt ratio is increasing and decreasing. Among the 5 years in 2008 Total Debt ratio is highest and in 2010 Total Debt ratio is lowest. Five years Net Total Debt ratios have shown the above graph.

The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.



Year Total Asset Owners Equity Ratio2005-2006 159,972,192 159,972,192 1.002006-2007 169,212,064 161,611,789 1.052007-2008 397,991,497 166,091,361 2.402008-2009 513,654,097 188,676,570 2.722009-2010 604,093,394 215,410,234 2.80

35

Asset to Equity Ratio

0

0.5

1

1.5

2

2.5

3

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Asset To Equity ratio is increasing and decreasing. Among the 5 years in 2006 Asset To Equity ratio is lowest and in 2010 Asset To Equity ratio is highest. Five years Asset To Equity ratios have shown the above graph.

The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions, and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities.

MARKET RATIOS

7. PRICE EARNING RATIO (PER)






2005-2006 639.50 22.82 28.02

2006-2007 786.75 31.14 25.26

2007-2008 995.75 48.09 20.70

2008-2009 1552.50 54.70 28.38

2009-2010 1652.50 57.80 28.58

36

Price Earning Ratio

0

5

10

15

20

25

30

35

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Price Earning ratio is increasing and decreasing. Among the 5 years in 2008 Price Earning ratio is lowest and in 2010 Price Earning ratio is highest. Five years Price Earning ratios have shown the above graph.

8. Dividend Yield


YearDividend per


share



2005-2006 21 639.50 0.033

2006-2007 22 786.75 0.028

2007-2008 25 995.75 0.025

2008-2009 20 1552.50 0.013

2009-2010 23 1652.50 0.014

37

Dividend Yield

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

In the year 2006 to 2010 Price Dividend Yield on Common Stock is increasing and decreasing. Among the 5 years in 2009 Dividend Yield on Common Stock is lowest and in 2006 Dividend Yield on Common Stock is highest. Five years Dividend Yield has shown the above graph.

Dividend Yield is the rate of return investors get from holding the share. For dividend investors, one of the telling metrics is Dividend Yield. Not all companies pay out dividends, but this ratio can be used for those that do. Older, well-established companies tend to payout a higher percentage and their dividend history can be more consistent.

BENCHMARK ANALYSIS:

From the Current ratio of four Pharmaceuticals company at a glance, it can be said

that, in 2006 & 2008 Square is the best, in 2007, 2009 & 2010 Beximco is the best.

Name of the Pharma

Year

2006 2007 2008 2009 2010

Square 178% 144% 126% 145% 215%

Beximco 133% 180% 109% 298% 246%

Renata 149% 138% 115% 117% 111%

IBN SINA 86% 77% 78% 83% 73%

Best Pharma Square Beximco Square Beximco Beximco

38

From the Quick ratio of four Pharmaceuticals company, it can be said that, in 2006 to

2008 Square is the best among four Pharma company and in 2009, 2010 Beximco is best.

Name of the Pharma

Year

2006 2007 2008 2009 2010

Square 119% 84% 68% 66% 116%

Beximco 63% 78% 52% 224% 167%

Renata 52% 45% 42% 40% 41%

IBN SINA 46.3% 45.7% 47.4% 60.5% 52.8%

Best Pharma

Square Square Square Beximco BeximcoFrom the Net Profit Margin ratio of four Pharmaceuticals company at a glance, it can

be said that, in 2006 to 2010 Square is the best Pharma all the year among four Pharma

company.

Name of the pharma

Year

2006 2007 2008 2009 2010

Square 19.14% 17.37% 16.73% 19.24% 18.21%

Beximco 12.78% 9.81% 13.60% 12.83% 16.20%

Renata 12.56% 13.25% 14.34% 15.47% 16.73%

IBN SINA 6.12% 3.56% 2.30% 4.11% 3.85%

Best Pharma

Square Square Square Square SquareFrom the Pay out ratio of four Pharmaceuticals company at a glance, it can be said that,

in 2006 to 2010 Beximco is the best Pharma in terms of Pay out ratio among four

Pharma company.

Name of the Pharma

Year

2006 2007 2008 2009 2010

Square 80% 58% 44% 32% 25%

Beximco 369% 536% 831% 429% 388%

Renata 52.2 % 37.6% 31.2% 25.4% 18%

IBN SINA 92% 74% 52% 14% 58%

Best Pharma

Beximco Beximco Beximco Beximco Beximco

39

From the Total Debt ratio of four Pharmaceuticals company at a glance, it can be said

that, in 2006 to 2010 IBN SINA is the best Pharma in terms of Total Debt ratio among

four Pharma company only except in 2008.

Name of the Pharma

Year

2006 2007 2008 2009 2010

Square 31.2% 30.1% 33.7% 25% 23.1%

Beximco 33.2% 30.9% 29.4% 45.2% 25.2%

Renata 45% 41% 47% 43% 42%

IBN SINA 53% 98% 45% 75% 64%

Best Pharma

IBN SINA IBN SINA RENATA IBN SINA IBN SINA From the Asset to Equity ratio of four Pharmaceuticals company at a glance, it can be said

that, in 2008 to 2010 Ibn Sina is the best Pharma, in 2006 to 2007 Renata is the best Pharma

in terms of Asset to Equity ratio.

Name of the Pharma

Year

2006 2007 2008 2009 2010

Square 145% 143% 151% 133% 130%

Beximco 150% 145% 142% 183% 134%

Renata 180% 169% 190% 174% 172%

Ibn Sina 100% 105% 240% 272% 280%

Best Pharma

Reneta Renata Ibn Sina Ibn Sina Ibn SinaFrom the Price Earning ratio of four Pharmaceuticals company at a glance, it can be

said that in 2006 & 2010 Ibn Sina is the best, in 2007 Renata, in 2008 & 2009 Beximco is

best among other Pharmaceuticals company.

Name of the Pharma

Year

2006 2007 2008 2009 2010

Square 11.64 11.19 26.60 18.75 25.88

Beximco 13.06 21.03 46.45 44.51 26.13

Renata 23.13 40.30 32.50 36.09 27.47

Ibn Sina 28.02 25.26 20.70 28.38 28.58

Best Pharma

Ibn Sina Renata Beximco Beximco Ibn Sina

40

From the Dividend Yield of common stock ratio of four Pharmaceuticals company at a

glance, it can be said that in 2006 to 2010 Beximco Pharma is the best Pharma among

four Pharmaceuticals company.

Name of the Pharma

Year

2006 2007 2008 2009 2010

Square 3.30% 2.63% 1.21% 1.36% 0.98%

Beximco 27.93% 25.46% 17.88% 9.46% 14.80%

Renata 2.35% 0.93% 0.96% 0.70% 0.65%

Ibn Sina 3.2% 2.8% 2.5% 1.3% 1.4%

Best Pharma

Beximco Beximco Beximco Beximco Beximco

SQUARE PHARMACEUTICALS LIMITED:

HORIZONTAL ANALYSIS OF INCOME STATEMENTS

2006%change

2007%change

2008%change

2009%change

2010%change

NET TURNOVER

COSTS OF GOODS SOLD

GROSS PROFIT

Operating Expenses:

Selling&DistributionExp

Administrative Expenses

Total Operating Exp.

Profit From Operations

Other income

Financial Expenses

NET PROFIT BEFORE WPPF

Allocation for WPPF

NET PROFIT BEFORE TAX

Provision for income tax

14.21

11.58

18.04

18.20

16.63

18.13

17.90

18.13

-52.61

1.32

1.32

1.32

29.61

23.31

21.07

26.04

25.31

118.34

42.90

15.54

29.30

69.34

12.38

12.38

12.38

4.40

10.09

13.77

5.24

22.08

16.01

20.32

-6.38

174.65

48.56

8.46

8.46

8.46

17.72

18.93

16.81

21.94

8.05

-2.35

5.16

38.56

10.07

12.86

34.39

34.39

34.39

44.66

9.68

4.84

16.72

24.91

12.02

21.66

13.55

-37.01

-29.55

13.18

14.44

13.11

14.48

41

NET PROFIT AFTER TAX

-7.17 11.78 6.03 36.78 10.47

From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2007 with a 23.31% rise & in 2010 with a 9.68% decline. The cost of goods sold has also been fluctuating, with a

sharp decline in 2010 & in 2007 sharp rise. The Gross Profit has also been fluctuating, with a sharp rise in 2007 with 21.94% & decline in 2008 with 5.24%.

The total operating expenses saw a sharp increase in 2007 & decline in 2009. Profit from operations was highest in the following period in 2009 and decline in the most recent previous year. The net profit after tax has been decreasing particularly in 2006 & 2008. There has been negative growth in 2006 and increasing in 2009 with 36.78%.

BEXIMCO PHARMACEUTICALS LIMITED:


2006%change

2007%change

2008%change

2009%change

2010%change

NET TURNOVER

COSTS OF GOODS SOLD

GROSS PROFIT

Operating Expenses:




Other income

Finance cost


Contribution to workers Profit contribution

PROFIT BEFORE TAX

Income tax expense

Current Tax

11.28

11.46

11.07

18.03

16.66

26.28

3.06

677.05

14.13

7.80

7.80

7.80

1250.03

-23.33

-2.84

-0.189

-5.87

-0.99

-0.61

-3.15

-12.29

-65.07

0.56

-23.61

-23.61

-23.61

-11.36

62.87

11.48

1.80

23.18

3.46

3.11

5.44

52.54

-96.50

-2.00

78.67

78.67

78.67

262.11

201.28

21.40

28.12

14.68

28.98

26.96

40.22

0.25

28852.21

15.93

21.47

21.47

21.47

43.82

-

33.33

29.28

37.84

18.19

20.12

8.47

63.37

129.16

128.79

56.95

56.95

56.95

27.66

-

42


-3.80 -24.98 54.46 14.56 68.33

From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2010 with a 33.33% rise & in 2007 with a -2.84% decline. The cost of goods sold has also been fluctuating, with a sharp decline in 2007 & sharp rise 2010. The Gross Profit has also been fluctuating, with a sharp rise in 2010 with 37.84% & decline in 2007 with -5.87%.

The total operating expenses saw a sharp increase in 2009 & decline in 2007. Profit from operations was highest in the following period in 2010 and decline in 2007. The net profit after tax has been decreasing particularly in 2006 & 2007 there has been negative growth and increasing in 2010 with 68.33%.

IBN SINA PHARMACEUTICALS LIMITED


2006%change

2007%change

2008%change

2009%change

2010%change

SALES

Cost of Goods Sold

GROSS PROFIT

Operating Expenses

OPERATING PROFIT

Financial Charges

Non Operating income

Workers P.P Fund


Provision Income Tax

12.53

10.78

22.13

27.56

16.32

107.52

32.54

39.09

30.72

6.76

7.98

6.50

10.69

26.25

-41.17

120.53

26.56

-37.31

-37.31

-37.31

37.11

37.66

36.13

37.72

24.78

94.11

60.22

31.82

21.87

7.66

32.90

28.90

36.56

36.98

64.35

109.52

40.64

46.06

58.01

33.13

21.43

20.31

23.27

26.01

5.34

7.30

54.22

12.83

12.83

9.19

43


21.73 -37.31 27.13 65.77 13.74

From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2008 with a 37.11% rise & decline in 2007 with 7.98%. The cost of goods sold has also been fluctuating, with a sharp decline in 2007 & sharp rise 2008. The Gross Profit has also been fluctuating, with a sharp rise in 2009 with 36.56% & decline in 2007 with 10.69%.

The total operating expenses saw a sharp increase in 2008 & decline in 2010. Profit from operations was highest in the following period in 2009 with 64.35% and decline in 2007. The Net profit after tax has been decreasing particularly in 2007. There has been negative growth and increasing in 2009 with 65.77%

RENATA PHARMACEUTICALS LIMITED


2006%change

2007%change

2008%change

2009%change

2010%change

TURNOVER

Cost of Sales

GROSS PROFIT

Other income

Operating Expenses:

Admin. Selling Exp.

OPERATING PROFIT

Other expenses

Contribution to WPPF


Current Tax


34.88

3.57

101.58

171.63

17.03

127.23

-65.27

202.25

202.25

44.08

25.74

31.46

32.76

30.12

-64.30

20.60

36.04

24.21

39.51

34.39

24.02

38.73

21.92

17.52

26.55

31.41

21.30

33.30

80.70

30.65

30.71

36.64

28.94

26.25

19.26

33.58

-47.79

32.37

32.16

14.19

34.94

34.94

14.58

39.34

30.50

32.13

29.06

-25.57

23.23

35.36

38.53

37.25

37.25

23.47

41.07

From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2006 with a 34.88% rise & in 2008 decline with 21.92% . The cost of goods sold has also been fluctuating, with a sharp decline in 2006 & sharp rise 2007. The Gross Profit has also been fluctuating, with a

44

sharp rise in 2006 with 101.58% & decline in 2008 with 26.55%. Profit from operations was highest in the following period in 2006 with 127.23% and decline in 2009 with 32.16%. The Net Profit after tax has been increasing all the five years. The Net profit after tax highest in the following period in 2010 with 41.07% and lowest in 2006 with 25.74%.


HORIZONTAL ANALYSIS OF BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS

2006%change

2007%change

2008%change

2009%change

2010%change

ASSETS:

Non-current Assets:

Property, Plant carrying value

Capital work in progress

Investment long term

CURRENT ASSETS

Inventories

Trade debtors

Advances, Deposits

Investment in marketable securities

Short term loan

Cash and cash equivalents

TOTAL ASSETS

LIABILITIES &SHAREHOLDERS EQUITY:

Share Capital

Share Premium

General Reserve

Tax Holiday Reserve

Retained Earnings

NON-CURRENT LIABILITIES:

Long term loans

12.90-1.88

56.82

15.3524.34

17.257.93

14.00

-48.01

-17.10

17.59

14.9615--

3.05-

35.6663.47

54.77-

29.18

107.11

-55.34

45.74

-8.66

15.03

11.82

42.02

-

-25.20

-55.84

12.77

14.54

20

-

16.28

24.06

-5.98

-18.22

211.64

21.85

15.79

22.83

29.35

19.80

31.25

11.58

22.14

-

6.45

46.79

21.13

14.78

50

-

-

22.48

31.28

22.33

73.05

13.47

19.84

-

24.82

-12.88

3.55

32.56

-9.86

-

-54.11

42.94

4.31

18.20

35

-

-

-

28.49

-15.83

-25.36

9.00

14.92

-

11.49

24.22

5.16

6.43

37.61

979.36

76.11

-11.83

13.42

16.13

25

-

-

-

23.70

90.38

129.60

45

Deferred tax liability

CURRENT LIABILITIES:

Short term Bank loan

Long term loans

Trade creditors

Liabilities for expenses

Liabilities for other finance

TOTAL SHAREHOLDERS EQUITY AND LIABILITY

15.94

7.3682.97-5.31

-51.39

59.24

17.59

13.04

23.63

-13.86

-23.66

-50.64

6.87

12.77

36.99

31.90

66.58

31.45

-5.98

11.39

-

21.13

15.64

-24.56

-42.53

-0.47

23.04

115.46

53.94

4.31

6.88

-16.06

-52.00

56.33

217.74

-18.84

-8.11

13.42



2006%change

2007%change

2008%change

2009%change

2010%change

ASSETS

Non current Asset

Property, plant

Investment in shares

Current Assets

Inventories

Spares & supplier

Accounts receivable

Loans, advances

Cash equivalents

TOTAL

32.43

32.56

-

-2.11

2.39

4.20

-44.82

-2.01

35.60

8.83

5.55

5.64

-12.58

-12.92

-58.12

-

16.14

15.94

-85.25

0.343

32.43

32.43

-

-2.12

2.39

28.63

0.848

-20.62

-14.06

23.98

8.50

8.77

-92.15

141.68

14.46

3.20

37.74

28.41

1337.15

34.23

17.00

16.63

118.56

-10.48

15.14

14.25

18.33

11.43

39.02

7.44

46

ASSSETS

Shareholders Equity

Issued share capital

Share premium

Excess of issue price

Capital Reserve on Merger

Revaluation surplus

Tax holiday reserve

Retained Earnings

Non Current Liability:

Long term borrowings

Liability for gratuity & WPPF


Current liabilities &

Provisions:

Short term borrowing

Creditors and other payable

Accrued Expenses

Dividend Payable

Income tax payable

Total Liabilities & Shareholders equity:

16.55

8.52

-

38.36

-

-

-4.75

12.86

-11.55

-16.43

12.26

37.99

1.02

22.67

-33.19

68.56

1466.89

-70.09

8.83

3.79

10.00

-

-

-

-

12.03

4.92

44.55

53.22

15.63

-17.71

-35.59

-30.34

-25.58

-49.08

-74.75

155.80

0.343

26.65

10.00

-

-

-

-

-1.00

25.58

-14.80

-18.56

11.23

-9.62

59.83

61.05

-3.18

36.17

-3.52

246.06

23.98

4.17

20.00

-

-

-

-5.48

-

6.93

278.22

33.06

12.02

659.33

-10.78

-0.707

55.75

-3.28

-45.49

-51.00

34.23

46.74

38.80

253.71

-

-

-5.11

-

18.79

-56.84

-1.18

9.26

83.62

8.26

13.00

5.47

14.43

-12.72

-

7.44

47



2006%change

2007%change

2008%change

2009%change

2010%change

ASSTS:

NON CURRENT ASSETS

Property, plant & equipment

Investment

Deferred Tax Asset

CURRENT ASSETS:

Inventories

Sundry Debtors

Advances, Deposits & prepayments

Cash & cash equivalents

TOTAL ASSETS

Shareholders Equity:

Share capital

Tax holiday reserve

Retained Earning

NON CURRENT LIABILITIES:

Long term Finance

Deferred Liability

Deferred tax Liability

CURRENT LIABIITIES:

Short term Finance

Long term Finance

Deposits

Creditors

15.50

-

29.64

-

13.591.15

655.53

17.57

31.21

12.23

1.02-

2.34

-

--

-

27.74

-2.87

-7.52

-4.56

34.31

-

24.45

-

17.32

12.14

-87.66

20.46

27.50

5.78

2.77

-

-

-

-

-

-

-

14.74

67.94

24.186.90

-1.43

58.90

-

50.08

-

31.81

15.14

-58.38

65.06

115.56

135.20

16.74

-

-

-

57.60

90.17

35.16

-58.47

78.83

-9.31

12.76

-5.47

-

18.32

18.00

20.60

-

46.84

2.67

237.35

37.02

138.23

29.06

13.60

-

-

31.50

49.80

115.10

31.19

-71.00

38.11

84.28

-5.78

23.06

-4.10

29.13

29.05

25.62

-

2.24

3.66

9.02

-5.68

17.60

14.17

-

-

28.35

33.02

43.52

27.79

-

16.54

10.03

186.92

5.43

34.97

48

Accrued Expenses

Other Finance

Income tax Liability

TOTAL SHAREHOLDER

EQUITY & LIABILITIES

34.755.06

-17.01

12.23

-29.7614.10

-17.68

5.78

-25.34

15.96

20.60

135.20

6.29

10.40

24.66

29.11

35.11

-1.57

12.87

17.60



2006%change

2007%change

2008%change

2009%change

2010%change

ASSETS:

Non-current Assets:



Investment in subsidiary

Other investment

Total non-current Assets

CURRENT ASSETS:

Inventories

Trade & other receivables

Advances,

72.59

-68.46

-

-

32.39

64.47

22.44

85.20

15.64

593.51

-

-

46.36

3.64

-1.96

38.94

27.31

86.38

-

737.78

41.93

44.92

76.77

-4.59

37.64

29.23

-

42.41

33.34

12.08

-0.10

1.76

83.67

-50.60

-

394.21

38.15

20.51

39.11

37.24

49

Deposits & Prepayments

Cash & Cash equivalents

Total Current Assets

Total Assets

EQUITY & LIABILITIES:

Share Capital

Revaluation Surplus

Tax holiday Reserve

Retained earnings

Total equity attributable to equity holders

Non-Current Liabilities:

Deferred Liability

Deferred tax liabilities

Total Non-current liabilities

Current Liabilities:

Bank overdraft

Creditors goods

Accrued expenses

Other liabilities

Provision for taxation

Total current liabilities

Total equity & Liabilities

-8.29

45.65

39.38

20.00

-0.30

1.26

40.55

26.89

20.44

11.95

16.35

93.24

210.04

7.73

151.75

17.07

71.52

39.38

-41.18

0.90

21.30

20.00

-0.30

-1.24

40.13

30.06

22.42

13.90

18.48

-2.79

-26.50

38.01

80.16

-0.28

8.83

21.30

155.19

52.42

46.74

20.00

-0.31

12.80

36.75

30.09

18.30

14.25

16.50

127.72

235.11

35.64

-35.12

56.49

83.16

46.74

16.32

9.09

21.79

25.00

-0.31

57.66

36.33

32.80

18.01

35.12

25.48

-3.49

-78.05

29.26

197.00

18.48

7.33

21.79

24.53

25.57

32.78

25.00

-0.31

48.98

37.69

34.62

11.56

38.60

24.28

42.17

13.82

28.46

17.54

6.24

31.32

32.78

50

SQUARE PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

Cash Flows from

Operating Activities

RECEIPTS:

Collection from sales

Others

PAYMENTS:

Purchase of raw & Packaging materials

Manufacturing Exp.

Bank interest

Income tax

Workers profit fund

Others

Net cash provided by Operating Expenses

CASH FLOW FROM INVESTING ACTIVITIES:

Purchase Fixed Asset

Disposal Fixed Asset

Pre-operating cost

Investment in Square Textiles Ltd

Investment in Square

Hospitals Ltd.

Investment in Square Informatix Ltd.

Investment in Square Knit Fabrics Ltd

Investment in Square Fashions Ltd

Investment in Square Biotech Ltd

6,075,711,742

10,517,860

6,086,229,602

3,093,893,074

1,333,348,859

139,863,636

284,812,892

43,530024

1,625902

4,897,074,387

(253,126,399)

5,362,331

(280,000,000)

(100,000,000)

400,000,000

220,000,000

7,455,061,355

95,827,359

7,550,888,714

3,688,812,470,

1,777,607,737,

236,845,084

343,650,860

52,779,178

1,325,262

6,101,020,591

1,449,868,123

(782,151,851)

3,972,492

(500,000,000)

100,000,000

(392,000,000)

(198,000,000)

(18,100,000)

8,231,097,525

449,727,661

8,,680,825,186

4,434,614,344

2,075,086,488

351,868,423

458,227,366

58,051,027

2,148,834

7,379,996,482

1,300,828,704

(1,106,201,471)

8,985,055

(500,000,000)

(3,157,800)

(316,400,000)

(109,875,230)

9,706,402,257

466,326,850

10,172,729,107

4,595,248,761

2,152,581,352

397,135,963

475,997,448

60,192,28

3,666,917

7,684,822,669

2,487,906,428

(877,960,724)

8,806250

(500,000,000)

(150,000,000)

(249,000,000)

11,401,786,553

448,178,202

11,849,964,755

4,993,049,492

2,942,764,932

308,861,107

855,888,639

82,353,560

3,529,132

9,186,446,862

2,663,517,893

(1,464,938,454)

12,475,331

92,000,000

48,000,000

418,000,000

(634,347,093)

51

Capital work in-

progress

Interest received

Dividend received

Net Cash used in Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES:

Long term loan received

Long term loan repaid

Short term loan decrease/(increase)

Short term Bank loan increase

Dividend paid

Net Cash Provided by Financing Activities

Decrease in cash and cash Equivalent

Cash and Cash Equivalent at the opening

Cash and Cash Equivalent at the closing

(1,229,428,470)

123,100,425

351,075,545

(1,089,091,048)

787,604,783

(323,915,587)

100,895,979

(397,361,793)

(332,640,000)

(165,416,618)

(65,353351)

382,074,333

316,720,982

(233,668,370)

88,000,686

36,425,250

1,895,521,793

150,000,000

(334,462,773)

347,619,691

478,230,949

(372,000,000)

268,787,867

(176,865,803)

316,720,982

139,855,179

-

-

112,595,980

(1,873,856,298)

414,288,000

(237,046,566)

850,915,306

(91,608,631)

(298,080,000

638,468,109

65,440,515

139,855,179

205,295,694

-

89,551,011

-

(1,569,806,551)

151,162,607

(305,401,660)

(1,135,347,402)

817,344,614

(357,696,000)

(829,337,841)

88,162,046

205,295,694

293,457,740

-

69,421,514

-

(1,639,252,295)

1,091,897,800

(342,522,688)

(797,901,934)

(527,579,221)

(482,489,600)

(1,058,995,643)

(34,730,045)

293,457,740

258,727,695

From the above table it can be seen that, cash position of Square Pharmaceuticals 2006 to 2010 is very good. In the year 2006-2010 cash and cash equivalent at the closing is rise sharp

in 2006 and lowest cash and cash equivalent at the closing in 2007. In the year 2008 cash position has improved, In the year 2009 & 2010 cash position again increasing.

52

RENATA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

Cash flows from operating Activities:

Collection from customer and other income

Payment of VAT

Payment suppliers

Cash generated from operation

Financing cost

Payment of Tax

Net Cash from operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property

Plant & equipment


Sale proceed of property & plant


CASH FLOW FROM FINANCING ACTIVITIES:

Medium term loan

Dividend paid

Net Cash From Financing Activities

Net Cash increase for the year

Opening cash and cash equivalents

2,185,812,587

(264,905,916)

(1,727,456,964)

193,449,707

(39,765,188)

(84,493,229)

69,191,290

(224,799,510)

-

1,928,200

(222,871,310)

179,423,238

(33,160,404)

146,262,834

(7,417,186)

89,452,557

2,885,087,954

(349,947,277)

(1,922,429,087)

612,711,590

(57,480,494)

(122,081,499)

433,149597

(417,615,371)

-

534,000

(417,081,371)

(10,373,668)

(39,472,951)

(49,846,619)

(33,778,393)

82,035,371

3,464,026,571

(446,920,865)

(2,598,987,823)

418,117,883

(87,270,665)

(113,669,101)

217,478,117

(5,49,504,472)

(7,377,754)

118,000

(556,764,226)

461,688,600

(47,511,431)

414,177,169

74,891,060

48,256,978

4,524,734,599

(576,244,068)

(2,934,353,785)

1,014,136,746

(99,513,638)

(163,539,3720

751,083,736

(642,570,569)

(3,553,225)

930,500

(645,193,394)

(28,738,995)

(57,051,213)

(85,790,208)

20,100,134

123,148,038

5,752,180,900

(726,458,705)

(3,897,580,701)

1,128,141,494

(117,473,675)

(224,608,092)

786,059,727

953,649,098

(48,034,005)

1,325,050

(1,000,358,053)

334,990,264

(85,555,885)

249,434,379

35,136,053

143,248,172

53

Closing cash & cash equivalent

82,035,371 48,256,978 123,148,038 143,248,172 178,384,225

From the above table it can be seen that, cash position of Renata Pharmaceuticals 2006 to 2010 has increasing. Among five years in 2007 closing cash and cash equivalent is lowest and rest of the year’s cash position is continuously increasing and In the year 2010 closing cash and cash equivalent is highest.

IBN SINA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

CASH FLOW FROM OPERATING ACTIVITIES:

Collection from customer & other

Payment for cost, expenses

Income Tax paid

Financial charges

Net Cash for operating activitiy


Purchase of Fixed assets

Profit from Bank deposits

Net Cash used in Investing activity

CASH FLOW FROM FINANCING

ACTIVITIES:

576,180,783

(540,147,137)

(12,132,926)

(1,168,103)

22,737,467

(38,481,137)

(5,424,000)

(38,906,917)

792,942,685

(759,880,586)

(12,930,838)

(2,267,457)

18,085,626

(49,834,248)

(4,590,000)

(50,323,499)

1,051,888,172

(990,664,427)

(15,373,495)

(4,750,860)

41,161,523

(57,687,625)

2,762,444

(54,925,181)

1,277,602,341

(1,186,331,780)

(17,515,888)

(5,098,143)

69,262,092

(96,977,569)

4,006,827

(92,970,742)

534,746,999

(471,572,986)

(12,087,212)

(529,664)

50,562,537

(26,010,8290)

2,949,000

(25,012,797)

54

Payment Dividend

Long term Finance received from Bank

Short term Finance received from Bank

Net Cash Flow From financing

Cash equivalents at the opening

Increase in cash

Cash equivalents at the closing

(19,581,834)

7,600,275

34,223,705

22,520,075

20,349,544

6,350,625

26,700,169

(15,444,615)

5,335,786

51,062,677

38,580,249

26,700,169

6,342,376

34,042,545

(20,021,662)

14,890,661

64,161,050

60,821,435

34,042,545

47,057,777

81,100,322

(22,710,459)

12,110,795

29,900,627

19,099,344

81,100,322

(4,609,306)

76,491,016

(16,493,943)(7,742,983)

(120,696)

(24,116,230)

76,491,016

(2,484,489)

74,006,527

From the above table it can be seen that cash position of Ibn Sina in the 2006 to 2010 has been continuously increasing. Among five years cash equivalent is fall down in 2006 and rise sharp in 2008. In the year 2006 Ibn Sina Pharma cash position is not good, in 2007 it is increasing, in 2008 it is again increasing rise sharp, in 2009 it is again fall down and in 2010 also fall down.

BEXIMCO PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

Cash flows from operating activities:

Cash receipts from customer

Cash paid to suppliers


Interest paid

Income tax paid

Net cash generated from operating

4,097,579,564

(2,714,775,105)

1,382,804,459

(229,719,450)

(73,557,767)

1,079,527,242

3,542,690,128

(2,947,335,836)

595,354,292

(222,581,780)

(32,303,532)

340,468,980

4,006,684717

(2,840,612,734)

1,166,071,983

(214,066,707)

(71,277,001)

880,728,275

4,710,870,128

(3,668,077,506)

842,792,622

(248,370,850)

(73,492,878)

520,928,894

6,810,510,631

(4,770,465,029)

2,040,045,602

(508,432,384)

(179,406,569)

1,352,206,649

55

activity

Cash Flow From Investing Activities:

Acquisition of property, plant


Sales of shares in Bextex ltd.

Disposal of property, plant

Short term investment

Net cash used in Investing activities

Cash flows from financing activities:

Net increase/decrease long term borrow

Issuance of preference share

Net increase/decrease short term borrow

Dividend paid

Net cash generated from financing activitiy

Decrease/increase in cash & cash equivalent

Cash & cash equivalent at the opening

Cash & cash equivalent at the closing

(1,083,478,873)

(10,000,000)

15,294,792

450,467

(1,077,733,614)

(760,582,2170

81,757,500

240,805,788

(131,700,637)

150,742,087

152,535,715

428,563,230

581,098,945

(460,904,187)

-

9,730,325

1,928,598

(449,245,2640)

70,386,381

-

(395,234,653)

(61,775,479)

(386,623,751)

(495,400,0350

581,098,945

85,698,910

(1,180,445,241)

-

-

61,600

(1,180,383,641)

(209,110,438)

-

554,083,900

(57,369,278)

287,604,184

(12,051,182)

85,698,910

73,647,728

(1,148,198,910)

-

197,500,000

3,553,600

(2500,000,000)

(3,452,871,835)

(45,531,749)

4,100,000,000

(10,339,873)

(127,399,591)

3,916,728,787

984,785,846

73,647,728

1,058,433,574

(2,595,098,749)

(46,545,634)

-

13,350,073

1,640,596,296

(991,114,714)

17,258,054

-

188,634,698

(153,750,000)

51,922,927

413,014,862

1,058,433,574

1,471,448,436

56

From the above table it can seen that, cash position of Beximco Pharmaceuticals in the year 2006 to 2010 has been continuously increasing and decreasing. Among five years Cash and cash equivalent at the end of the year has fall down in 2008 and highest rise sharp in 2009. In the year 2006 Beximco Pharma cash position is very good, in 2007 it is fall down, in 2008 it is again fall down, in 2009 it is rise sharp and in 2010 it is again fall down.

Growth Percentage Analysis: Growth percentage is the amount of increase that a specific variable has gained within a

specific period and context. For investors, this typically represents the compounded

annualized rate of growth of a company's revenues, earnings, dividends and even macro

concepts - such as the economy as a whole.

Annualized growth rate of revenue expressed as a percentage, used in measuring performance

of a new firm with a little or no record of earnings. In a word growth is a percentage increase

or decrease in a particular subject between two time periods. (Investopedia.com 2010)

In this part three types of growth percentage have been discussed. They are the growth

percentage analysis of Number of employees, Net income and Earnings per share.

Growth of Net Income of Selected Pharma:

Growth pattern of Net Income of Selected Pharma have been shown below. The growth percentage of net income is calculated by the formula .i.e. (Chowdhury & Ahmed 2009)

(Total Amount of Current Net Income –Total Amount of previous Net Income) *100 Total Amount of previous Net IncomeTable shows that the net income of selected Pharma has increased from the previous year during 2006 to 2010. The highest growth rate is Beximco Pharma which is 68.33%. The lowest growth rate is observed in Beximco Pharma which is -3.80%. It is also observed that growth rate of different Pharma are not highly stable.Name of the Pharma

Net Income (Thousand Taka)

2006 2007 2008 2009 2010

Square Pharma 1,165,865 1,303,243 1,381,863 1,890,053 2,087,872 Growth -7.17% 11.78% 6.03% 36.78% 10.47%Beximco Pharma

470,659 353,068 545,341 624,740 1,051,649

Growth -3.80% -24.98% 54.46% 14.56% 68.33%Renata Pharma 242,132 335,923 433,146 603,524 851,428 Growth 25.74% 38.73% 28.94% 39.34% 41.07%IBN SINA 32,761,931 20,539,597 26,111,294 43,285,209 49,233,664

Growth 21.13% -37.31% 27.13% 65.77% 13.74%

57

Graphical Presentation of Growth of Net Income:

Growth of Net Income

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of net income of Square Pharma Ltd. has been shown in the above figure. The growth

of net income is increases in 2007 from 2006. But it shows decreasing growth in the year

2008 and it increases again in 2009. Though the year 2006 it shows a negative growth rather

the growth is satisfactory in 2009 i.e. 36.78 %. So management of the Square Pharma

Company should try to keep this increasing growth.

Growth of Net Income

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of net income of Beximco Pharma Ltd. has been shown in the above figure. The growth of net income is increases in 2008 from 2006. But it shows decreasing growth in the year 2006&2007 and it increases again in 2009 & 2010. Though the year 2006 & 2007 it shows a negative growth rather the growth is satisfactory in 2010 i.e. 68.33 %. So management of the Beximco Pharma Company should try to keep this increasing growth.

58

Grow th of Net Income

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of net income of Renata Pharma Ltd. has been shown in the above figure. The growth of net income is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it increases again in 2009 & 2010. The growth is satisfactory in 2010 i.e. 41.07 %. So management of the Renata Pharma Company should try to keep this increasing growth.

Grow th of Net Income

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of net income of Ibn Sina Pharma Ltd. has been shown in the above figure. The growth of net income is increases in 2008 from 2009. But it shows decreasing growth in the year 2007, 2010. It shows negative growth in 2007 and it increases in 2009. The growth is satisfactory in 2009 i.e. 65.77 %. So management of the Ibn Sina Pharma Company should try to keep this increasing growth.

Growth of EPS of Selected Pharma:

Growth pattern of Earning per share of Selected Pharma have been shown below. The growth percentage of EPS calculated by the formula i.e. (Chowdhury & Ahmed 2009) (Current Year EPS –Previous Year EPS) *100 Previous Year EPS

It is observed from the table that the EPS of selected Pharma has increased from the previous year during 2006 to 2010. The EPS growth rate is highest in Beximco Pharma in 2010 with

59

47.71%. The lowest growth rate is observed in Beximco Pharma in 2009 which is -3.05%.It is also observed that growth rate of different Pharma are not highly stable.

Name of the Pharma

Net Income (Thousand Taka)

2006 2007 2008 2009 2010

Square Pharma 77.26 86.36 91.57 125.25 138.36 Growth -63.32% 11.78% 6.03% 36.78% 10.47%Beximco Pharma

4.11 2.8 3.61 3.5 5.17

Growth -35.37% -31.87% 28.93% -3.05% 47.71%Renata Pharma 133.96 185.85 239.64 333.90 471.06 Growth -44.12% 38.74% 28.94% 39.33% 41.07%IBN SINA 22.82 31.14 36.40 48.09 54.70

Growth -37.31% 36.46% 16.89% 32.12% 13.75%

Graphical Presentation of Growth of EPS:

Growth of EPS

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of EPS of Square Pharma Ltd. has been shown in the above figure. The growth of

EPS is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it

increases again in 2009. Though the year 2006 it shows a negative growth rather the growth

is satisfactory in 2009 i.e. 36.78%. So management of the Square Pharma Company should

try to keep this increasing growth.

60

Growth of EPS

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of EPS of Beximco Pharma Ltd. has been shown in the above figure. The growth of

EPS is increases in 2008 from 2006. But it shows decreasing growth in the year 2006, 2007

& 2009 and it increases again in 2010. Though the year 2006, 2007 & 2009 it shows a

negative growth rather the growth is satisfactory in 2010 i.e. 47.71% so management of the

Beximco Pharma company should try to keep this increasing growth.

Grow th of EPS

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of EPS of Renata Pharma Ltd. has been shown in the above figure. The growth of


increases again in 2009& 2010. Though the year 2006 it shows a negative growth rather the

growth is satisfactory in 2010 i.e. 41.07% so management of the Renata Pharma company

should try to keep this increasing growth.

61

Growth of EPS

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Growth of EPS of Ibn Sina Pharma Ltd. has been shown in the above figure. The growth of


increases again in 2009& 2010. Though the year 2006 it shows a negative growth rather the

growth is satisfactory in 2010 i.e. 54.70% so management of the Ibn Sina Pharma company

should try to keep this increasing growth.

62

CHAPTER 4: REPORT ENDING

63

Conclusion:

This analysis consisted of four mentioned pharmaceuticals company from an investor’s point of view. The report concentrates on the financial aspects of the company that are of most importance to the investors. Although many factors determine an investor’s preference to invest in a company, most often than not they prefer to invest in companies that have an overall high standard performance.

After analyzing all the ratios, we have found out the following information:

Liquidity Ratios: In the liquidity ratio we can see that both current ratio and quick ratio improved over time marginally. The situation was almost stable.

Profitability Ratios : Net profit has steadily increased over the years and along with consistent level of operating profit shows impressive reading for an investor. But these advantages have been balanced by a slump in the return on assets and equity figures. Although the decrease rate is very minimal still it is a problem for all four Pharmaceuticals company and they need to try to improve these ratios.

Leverage Ratios: Debt ratio has improved over time and has remained pretty much stable. SPL is mainly finance by equity, although proportion of debt is rising.

Market Value Ratios : The whole market was not so friendly for investment during that year. Enhanced performance in subsequent year belies the faith of the market’s high valuation of SPL’s stocks. But a sharp fall in the dividends and consequently dividend yield columns is indeed alarming. This along with a decreasing trend of earnings per share should occupy the management’s time and resources in the ensuing periods

Financial figures from the past five years show that at present Square Pharmaceuticals have impressive financial records. Square Pharmaceuticals is one of the most sought after company by investors due to their constantly improving financial figures which they have been able to maintain over the years. It is true in the financial year of 2007 their return did decline but they bounced back strongly in subsequent period and maintained a satisfactory level of financial performance. Therefore, we can conclude that Square Pharmaceuticals Ltd. is a good enough company compare to other selected Pharmaceuticals company.

64

Recommendation:

Four mentioned Pharmaceuticals Company should be conscious about proper utilization of assets. They should be conscious about profitability.

Four mentioned Pharmaceuticals Company should care about Net Profit margin which is not good enough, which means that management would try to achieve close control over the Pharmaceuticals company earnings at the cheapest sources of funding.

Four mentioned Pharmaceuticals Company should also give attention to ensure proper utilization of assets which is the indicator of efficiency of the management.

Square Pharmaceuticals Limited should increase its product variety. Product variety

represents different types of items of medicines. At present, Square offers around 180

different types of medicine. Some other companies are offering more than this. SPL can

diversify itself from others by operating in highly specialized segments such as anti cancer

segments.

Introduction of new products to doctors is vital because it can enhance the image of the

company. It is always a good idea to find a gap to introduce a new item. Square can locate the

products areas where there are less number of alternatives and also higher amounts of

requirements.

Four mentioned Pharmaceuticals Company should provide more product samples gifts to the

doctors to increase their image among them.

Doctors should be informed previously that new medicines are coming up and will be offered

within two or three months. Thus the doctors can perceive an insight about the new medicines

as an alternative of competitor's existing items and Square pharma can gain good rapport with

the doctors.

SPL’s distribution is quite weak. Steps must be taken to strengthen the distribution network.

This will require more effort on the part of the medical representatives.

Pharmaceutical direct-to-physician marketing efforts have typically been isolated from other

customer-centric activities, including those conducted by field sales forces. A dis-jointed

relationship exists between pharmaceutical sales teams and direct-to-physician marketing.

65

While the pharmaceutical industry has made significant investments in direct-to-physician

promotions, the sales force is generally uninformed about their timing or end results. SPL

should enhance their ability to link home office conducted marketing campaigns with field

force activities through information, software, and service solutions to make these efforts

more coordinated and therefore more effective.

Direct to consumer (DTC) essentially means any campaign or communication programme

intended for and targeted to consumers - the primary end users of a product. In relation to

pharmaceutical products, the consumers may be patients, friends or family members,

caregivers or the general public.

The strict regulations that have governed the communication of information about

prescription medicines in Bangladesh meant that the primary marketing focus has been on the

people who actually make prescribing decisions; the doctors.

These include the impact of communication to consumers via the internet, patient education,

word of mouth or use of editorial space or air time in print and broadcast media.

More than ever before patients are getting involved in making their own healthcare decisions.

The growth in over-the-counter drugs and the dissemination of information on the World

Wide Web and in consumer magazines have all contributed to a thirst for information. Four

mentioned Pharmaceutical Company can make an advantage of this and bring about some

changes to fulfill these needs and as result it will enhance the image of the company.

Direct to consumer (DTC) advertising is thought to enhance competition between brands,

which can lead to improved quality and lower prices for consumers but, most importantly, it

can improve public health.

66

APPENDIX

67

INCOME STATEMENT OF BEXIMCO PHARMACEUTICALS LTD:

2006 2007 2008 2009 2010

Net Sales Revenue

COSTS OF GOODS SOLD

GROSS PROFIT

Operating Expenses:




Other income

Finance cost

Net Profit Before Contribution to WPPF

Contribution to workers Profit Participation

PROFIT BEFORE TAX

Income tax Income

Current Tax

Deferred tax Income


3,702,317,159

(1,971,231,333)

1,731,085,826

(984,562,332)

(834,276,355)

(150,285,977)

746,523,494

56,201,142

(253,318,784)

549,405,852

(26,162,183)

523,243,669

(52,585,106)

(35,402,549)

(17,182,557)

470,658,563

3,597,024,812

(1,967,509,975)

1,629,514,837

(974,736,690)

(829,191,989)

(145,544,701)

654,778,147

19,625,795

(254,742,392)

(419,661,550)

(19,983,883)

399,677,667

(46,609,789)

(57,661,278)

11,051,489

353,067,878

4,010,167,059

(2,002,871,181)

2,007,295,878

(1,008,501,030)

(855,036,787)

(153,464,243)

998,794,848

686,510

(249,654,298)

749,827,060

(35,706,050)

714,121,010

(168,779,737)

(173,720,430)

4,940,693

545,341,273

4,868,254,915

(2,566,206,626)

2,302,048,289

(1,300,765,878)

(1,085,573,331)

(215,192,547)

1,001,282,411

198,986,379

(289,427,992)

910,840,798

(43,373,371)

867,467,427

(242,727,120)

-

(242,727,120)

624,740,307

6,490,847,353

(3,317,640,254)

3,173,207,099

(1,537,426,907)

(1,304,012,927)

(233,413,980)

1,635,780,192

456,011,134

(662,182,384)

1,429,608,942

(68,076,616)

1,361,532,326

(309,883,518)

(71,085,835)

(238,797,683)

1,051,648,808

68

INCOME STATEMENT OF SQUARE PHARMACEUTICALS LTD:

2006 2007 2008 2009 2010

Gross Turnover

Less: Value Added Tax

NET TURNOVER

COSTS OF GOODS SOLD

GROSS PROFIT

Operating Expenses:



Total Operating Exp.


Other income

Financial Expenses


Allocation for WPPF


Provision for income tax


7,085,553,149

995,647,7536,089,905,396

(3,525,402,669)

2,564,502,727

(798,131,173)

(186,167,019)(984,298,192)

1,580,204,535169,353,845

(139,863,636)

1,609,694,744

(76,652,130)

1,533,042,614

(333,310,560)

1,165,864,616

8,711,034,758

1,210,223,4097,500,811,349

(4,268,447,662)

3,232,363,687

(1,000,132,914)

(406,478,534)(1,406,611,448)

1,825,752,239220,144,368

(236,845,084)

1,809,051,523

(86,145,311)

1,722,906,212

(347,984,083)

1,303,242,840

9,565,715,902

1,307,872,163

8,257,843,739

(4,856,061,933)

3,401,781,806

(1,220,979,268)

(471,496,720)

(1,692,475,988)

1,709,305,818

604,628,504

(351,868,423)

1,962,065,899

(93,431,709)

1,868,634,190

(409,660,827)

1,381,863,093

11,366,597,928

1,545,801,360

9,820,796,568

(5,672,565,973)

4,148,230,595

(1,319,362,317)

(460,431,051)

(1,779,793,368)

2,368,437,227

665,520,915

(397,135,963)

2,636,822,179

(125,562,961)

2,511,259,218

(592,644,226)

1,890,052,929

13,279,141,757

1,816,563,347

11,462,578,410

(6,561,288,485)

4,901,289,925

(1,687,210,447)

(524,460,492)

(2,211,670,939)

2,689,618,986

585,564,826

(308,861,107)

2,966,322,705

(141,253,462)

2,825,069,243

(688,499,602)

2,087,871,791

69

INCOME STATEMENT OF IBN SINA PHARMACEUTICALS LTD:

2006 2007 2008 2009 2010

SALES

Less: Cost of Goods Sold

GROSS PROFIT

Less: Operating Expenses

OPERATING PROFIT

Less: Financial Charges

Add: Non Operating income

Less: Workers P.P Fund & welfare fund


Less: Provision for Income Tax


534,738,092

345,464,844

189,273,248

145,573,190

43,700,058

529,664

43,170,394

3,952,932

2,243,968

44,879,358

12,117,427

32,761,931

577,427,115

367,925,503

209,501,612

183,793,323

25,708,289

1,168,103

24,540,186

5,003,070

1,406,822

28,136,434

7,596,837

20,539,597

791,683,415

506,490,350

285,193,065

263,115,026

32,078,039

2,267,457

29,810,582

6,333,671

1,854,483

34,289,670

8,178,376

26,111,294

1,052,301,721

652,854,439

399,454,282

346,729,133

52,725,149

4,750,860

47,974,289

8,907,577

2,708,660

54,173,206

10,887,997

43,285,209

1,277,868,846

785,469,076

492,399,770

436,859,745

55,540,025

5,098,143

50,441,882

13,736,889

3,056,132

61,122,639

11,888,975

49,233,664

70

INCOME STATEMENT OF RENATA PHARMACEUTICALS LTD:

2006 2007 2008 2009 2010

TURNOVER

Cost of Sales

GROSS PROFIT

Other income

Operating Exp.

Admin Selling

Expenses:

OPERATING PROFIT

Gain on disposal of Property, equipment

Interest on overdraft

Other Expenses

Contribution to WPPF


Current Tax

Deferred Tax


1,927,731,885

(978,390,209)

949,341,676

32,868,293

982,209,969

(577,785,557)

404,424,412

1,928,200

(39,765,188)

(2,634,492)

(16,731,165)

347,221,767

(98,232,128)

(6,858,002)

242,131,637

2,534,174,981

(1,298,911,334)

1,235,263,647

11,734,434

1,246,998,081

(696,781,6730

550,216,408

496,800

(57,480,494)

(3,272,447)

(23,341,441)

466,618,826

(121,815,058)

(8,880,661)

335,923,107

3,089,746,417

(1,526,514,685)

1,563,231,732

15,420,344

1,578,652,076

(845,169,923)

733,382,153

118,000

(87,270,665)

(5,913,520)

(30,496,000)

609,919,968

(166,444,936)

(10,329,228)

433,145,804

3,900,732,314

(1,820,496,777)

2,080,235,537

8,050,515

2,088,286,052

(1,118,768,795)

969,517,257

930,500

(99,513,638)

(6,752,520)

(41,151,504)

823,030,095

(190,711,707)

(28,793,936)

603,524,452

5,090,318,113

(2,405,361,976)

2,684,956,137

5,992,117

2,690,948,254

(1,378,630,620)

1,312,317,634

593,908

(117,473,675)

(9,354,136)

(56,480,177)

1,129,603,554

(235,480,759)

(42,694,263)

851,428,532

71


BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS

2006 2007 2008 2009 2010

ASSETS:

Non-current Assets:

Property, Plant carrying value


Investment long term

CURRENT ASSETS

Inventories

Trade debtors

Advances, Deposits

Investment in marketable securities

Short term loan

Cash and cash equivalents

TOTAL ASSETS

LIABILITIES &SHAREHOLDERS EQUITY:

Shareholder’s Equity

Share Capital

Share Premium

General Reserve

Tax Holiday Reserve

Retained Earnings

NON-CURRENT LIABILITIES:

Long term loans


CURRENT LIABILITIES:

Short term Bank loan

Long term loans

5,267,302,357

2,273,761,161

1,077,707,832

1,915,833,364

4,031,684,955

1,342,364,478288,732,137166,492,706

20,250,000

1,897,124,652

316,720,982

9,298,987,312

6,402,014,772496,800,000

2,035,465,000105,878,200

947,678,6902,816,192,882

636,217,059

602,349,621

33,867,438

2,260,755,481

1,471,158,187

261,416,941

6,804,429,292

3,531,003,509

481,239,419

2,792,186,364

3,682,510,712

1,544,191,798

322,864,637236,455,395

20,250,000

1,418,893,703

139,855,179

10,486,940,004

7,333,257,612

596,160,000

2,035,465,000105,878,200

1,101,935,2373,493,819,175

598,116,106

492,569,379

105,546,727

2,555,566,286

1,818,777,878

225,176,449

8,291,290,984

4,088,432,171

591,114,649

3,611,744,164

4,411,836,4362,026,736,322

360,245,646288,806,440

20,250,000

1,510,502,334

205,295,694

12,703,127,420

8,417,040,705894,240,000

2,035,465,000105,878,200

1,101,935,2374,279,522,268

785,241,612

602,584,615

182,656,997

3,500,845,103

2,699,693,184

9,407,730,001

4,899,679,832

-

4,508,050,169

3,843,512,8552,098,755,231

477,562,002260,330,162

20,250,000

693,157,720

293,457,740

13,251,242,856

9,949,397,6341,207,224,000

2,035,465,000105,878,200

1,101,935,2375,498,895,197

660,976,668

449,757,608

211,219,060

2,640,868,554

1,534,345,782

295,590,601

10,255,189,084

5,630,791,822

634,347,093

3,990,050,169

4,774,311,1942,207,078,082

508,249,174358,250,076

221,269,226

1,220,736,941

258,727,695

15,029,500,278

11,554,379,8251,509,030,000

2,035,465,000105,878,200

1,101,935,2376,802,071,388

1,258,376,052

1,032,633,110

225,742,942

2,216,744,401

736,443,848

462,090,211

72

Trade creditors

Liabilities for expenses

Liabilities for other finance

TOTAL SHAREHOLDERS EQUITY AND LIABILITY

79,390,166

49,771,374

399,018,813

9,298,987,312

60,601,743

24,565,248

426,444,968

10,486,940,004

297,002,646100,953,258

32,290,235

400,905,780

12,730,127,420

124,222,699

69,573,702

617,135,770

13,251,242,856

394,715,915

56,463,570

567,030,857

15,029,500,278



2006 2007 2008 2009 2010

ASSETS:

Non current Asset

Property, plant


Current Assets

Inventories

Accounts receivable

Loans, advances and Deposits

Cash&Cash equivalents

TOTAL ASSSETS

Shareholders Equity

Issued share capital

Share

8,555,119,221

8,513,136,381

41,982,840

3,357,393,266

1,754,440,288

430,240,095

591,613,938

581,098,945

11,912,512,487

7,949,920,425

1,040,973,120

1,489,750,000

9,029,643,482

8,992,942,392

36,701,090

2,923,775,458

1,652,480,291

499,680,792

685,915,465

85,698,910

11,953,418,940

8,250,939,647

1,145,070,430

1,489,750,000

11,957,773,787

11,921,072,697

36,701,090

2,861,891,654

1,505,288,093

503,916,401

544,509,106

73,647,728

14,819,665,441

10,450,202,145

1,259,577,470

1,489,750,000

12,975,195,529

12,966,587,178

2881,826

6,916,737,893

1,722,953,284

694,111,730

699,204,450

1,058,433,574

19,891,933,422

10,885,706,614

1,511,492,960

1,489,750,000

15,180,731,678

15,123,306,298

6,298,526

6,191,667,831

1,983,809,444

821,356,439

779,129,620

1,471,448,436

21,372,399,509

15,974,086,451

2,098,065,090

5,269,474,690

73

premium

Excess of issue price

Capital Reserve

Tax holiday reserve

Retained Earnings

Non Current Liability:

Long term borrowings

Liability for gratuity & WPPF


Current liabilities &

Provisions:

Short term borrowing

Creditors and other payable

Accrued Expenses

Dividend Payable

Income tax payable

Total Liabilities & Shareholders equity:

1,689,636,958

294,950,950

394,834,828

3,039,774,569

1,435,171,264

1,159,409,947

213,357,859

62,403,458

2,527,420,798

1,302,816,980

365,255,938

117,936,620

13,012,146

16,276,184

11,912,512,487

1,689,636,958

294,950,950

442,354,953

3,189,176,356

2,074,506,357

1,776,449,778

246,704,610

51,351,969

1,627,972,936

907,582,327

271,814,118

60,052,739

3,285,324

41,633,930

11,953,418,940

1,689,636,958

294,950,950

-

4,005,112,020

1,767,431,029

1,446,600,500

274,419,253

46,411,276

2,602,032,267

1,461,666,227

263,176,822

81,776,450

3,169,568

144,077,359

14,819,665,441

1,689,636,958

294,950,950

-

4,282,514,032

6,684,775,166

1,924,933,065

307,425,614

352,416,487

2,321,451,642

1,451,326,354

409,898,122

79,094,905

1,727,724

70,584,481

19,891,933,422

1,689,636,958

294.950,950

-

5,087,312,943

2,885,155,826

1,902,150,733

335,885,792

647,119,301

2,513,157,232

1,639,961,052

432,315,660

90,512,178

1,507,899

-

21,372,399,509

74



2006 2007 2008 2009 2010

ASSTS:

NON CURRENT ASSETS


Investment

Deferred Tax Asset

CURRENT ASSETS:

Inventories

Sundry Debtors

Advances, Deposits & prepayments

Cash & cash equivalents

TOTAL ASSETS

Shareholders Equity:

Share capital

Tax holiday reserve

Retained Earning

NON CURRENT LIABILITIES:

Long term Finance

Deferred Liability

Deferred tax Liability

CURRENT LIABIITIES:

Short term Finance

Deposits

Creditors

159,923,617

18,302,290

-

112,487,404

51,549,217

190,126

40,398,517

20,349,544

159,972,192159,972,192

90,000,000

69,972,192

-

-

-

-

130,741,119

27,036,927

5,685,06615,774,554

184,714,495

23,726,290

-

127,775,501

52,142,698

1,436,458

47,496,176

26,700,169

169,212,064161,611,789

90,000,000

71,611,789

-

7600,275-

-167,004,222

61,260,632

6,112,68115,055,704

22,738,848

248,082,520

218,555,330

29,527,290

-

149,908,877

58,473,330

177,188

57,215,814

34,042,545

397,991,497

166,091,361

90,000,000

4,392,110

71,899,251

40,270,273

12,936,061

24,042,490

3,291,722

191,629,863

102,884,973

6,534,281

14,840,930

293,523,518

257,913,228

35,610,290

-

220,130,579

60,035,472

597,737

78,397,048

81,100,322

513,654,097

188,676,570

90,000,000

4,392,110

94,284,460

60,324,124

27,826,722

31,542,490

954,912

264,653,403

169,591,739

8,041,381

14,232,048

379,036,527

332,846,136

44,734,790

1,455,601

225,056,867

62,231,701

864,243

85,469,907

76,491,016

604,093,394215,410,234

90,000,000

4,392,110

121,018,12480,245,507

39,937,51740,307,990

-308,437,653

186,608,862

8,478,381

19,209,29

75

Accrued Expenses

Other Finance

Provision for Income Tax

Income tax Liability

TOTAL SHAREHOLDER

EQUITY & LIABILITIES

16,875,043

19,814,414

26,655,115

-

159,972,192

20,817,331

22,119,026

-

169,212,064

15,971,179

23,753,600

-

18,206,564

397,991,497

16,976,210

26,223,324

-

22,696,081

513,654,097

22,937,534

25,811,246

-

25,616,177

604,093,394



2006 2007 2008 2009 2010

ASSETS:

Non-current Assets:



Investment in subsidiary

Other investment

Total non-current Assets

CURRENT ASSETS:

Inventories

Trade & other receivables

Advances, Deposits & Prepayments

Cash & Cash equivalents

689,066,469

44,121,037

63,070,376

1,000,000

797,257,882

638,784,952

198,626,085

59,808,451

82,035,371

796,846,754

305,983,441

63,070,376

1,000,000

1,166,900,571

662,012,145

194,727,875

83,095,822

48,256,978

1,014,435,834

570,277,998

63,070,376

8,377,754

1,656,161,962

959,414,590

344,226,933

79,281,411

123,148,038

1,396,300,867

736,960,533

63,070,376

11,931,079

2,208,262,855

1,075,310,581

343,870,341

80,677,337

143,248,172

2,564,572,288

363,998,451

63,070,376

58,965,084

3,050,606,199

1,295,855,164

478,364,475

110,721,962

178,384,225

76

Total Current Assets

Total Assets

EQUITY & LIABILITIES:

Share Capital

Revaluation Surplus

Tax holiday Reserve

Retained earnings

Total equity attributable to equity holders

Non-Current Liabilities:

Deferred Liability

Deferred tax liabilities

Total Non-current liabilities

Current Liabilities:

Bank overdraft

Creditors goods

Accrued expenses

Other payables

Provision for taxation

Total current liabilities

Total equity & Liabilities

979,254,859

1,776,512,741

80,332,400

156,018,160

47,451,353

698,510,882

982,312,795

72,656,492

62,661,763

135,318,255

371,848,683

51,607,325

71,050,788

68,360,467

94,222,229

658,881,691

1,776,512,741

988,092,820

2,154,993,391

96,398,900

155,553,964

46,862,514

978,790,128

1,277,505,506

88,948,500

71,370,735

160,319,235

361,475,015

37,929,106

98,063,196

123,160,097

93,955,788

717,068,650

2,154,993,391

1,506,070,972

3,162,232,934

115,678,700

155,075,461

52,862,514

1,338,456,682

1,662,073,357

105,224,160

81,542,581

186,766,741

823,163,615

127,107,689

133,013,604

79,902,838

147,031,623

1,313,392,836

3,162,232,934

1,643,106,431

3,851,369,286

144,598,400

154,596,958

83,346,636

1,824,737,962

2,207,279,956

124,183,595

110,179,135

234,362,730

794,424,620

27,896,925

171,928,847

237,310,646

174,203,958

1,409,726,600

3,851,369,286

2,063,325,826

5,113,932,025

180,748,000

154,118,455

124,166,310

2,512,438,179

2,971,470,944

138,540,457

152,716,016

291,256,473

1,129,414,884

31,752,362

220,862,988

278,932,990

185,076,625

1,851,204,608

5,113,932,025

77

SQUARE PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

Cash Flows from

Operating Activities

RECEIPTS:

Collection from sales

Others

PAYMENTS:

Purchase of raw & Packaging materials

Manufacturing Exp.

Bank interest

Income tax

Workers profit fund

Others

Net cash provided by Operating Expenses


Purchase Fixed Asset

Disposal Fixed Asset

Pre-operating cost

Investment in Square Textiles Ltd

Investment in Square

Hospitals Ltd.

Investment in Square Informatix Ltd.

Investment in Square Knit Fabrics Ltd

Investment in Square Fashions Ltd

Capital work in-

progress

6,075,711,742

10,517,860

6,086,229,602

3,093,893,074

1,333,348,859

139,863,636

284,812,892

43,530024

1,625902

4,897,074,387

4,897,074,387

-

(253,126,399)

5,362,331

(280,000,000)

(100,000,000)

400,000,000

220,000,000

(1,229,428,470)

7,455,061,355

95,827,359

7,550,888,714

3,688,812,470,

1,777,607,737,

236,845,084

343,650,860

52,779,178

1,325,262

6,101,020,591

1,449,868,123

(782,151,851)

3,972,492

(500,000,000)

100,000,000

(392,000,000)

(198,000,000)

(18,100,000)

-

(233,668,370)

8,231,097,525

449,727,661

8,,680,825,186

4,434,614,344

2,075,086,488

351,868,423

458,227,366

58,051,027

2,148,834

7,379,996,482

1,300,828,704

(1,106,201,471)

8,985,055

(500,000,000)

(3,157,800)

(316,400,000)

-

(109,875,230)

-

-

9,706,402,257

466,326,850

10,172,729,107

4,595,248,761

2,152,581,352

397,135,963

475,997,448

60,192,28

3,666,917

7,684,822,669

2,487,906,428

(877,960,724)

-

8,806250

(500,000,000)

-

(150,000,000)

(249,000,000)

-

-

11,401,786,553

448,178,202

11,849,964,755

4,993,049,492

2,942,764,932

308,861,107

855,888,639

82,353,560

3,529,132

9,186,446,862

2,663,517,893

(1,464,938,454)

-

12,475,331

-

92,000,000

48,000,000

418,000,000

-

-

78

Interest received

Dividend received


CASH FLOWS FROM FINANCING ACTIVITIES:

Long term loan received

Long term loan repaid

Short term loan decrease/(increase)

Short term Bank loan increase

Dividend paid

Net Cash Provided by Financing Activities

Decrease in cash and cash Equivalent

Cash and Cash Equivalent at the opening

Cash and Cash Equivalent at the closing

123,100,425

35,000,165

(1,089,091,048)

787,604,783

(323,915,587)

100,895,979

(397,361,793)

(332,640,000)

(165,416,618)

(65,353351)

382,074,333

316,720,982

88,000,686

36,425,250

1,895,521,793

150,000,000

(334,462,773)

347,619,691

478,230,949

(372,000,000)

268,787,867

(176,865,803)

316,720,982

139,855,179

-

112,595,980

(1,873,856,298)

414,288,000

(237,046,566)

850,915,306

(91,608,631)

(298,080,000

638,468,109

65,440,515

139,855,179

205,295,694

-

89,551,011

(1,569,806,551)

151,162,607

(305,401,660)

(1,135,347,402)

817,344,614

(357,696,000)

(829,337,841)

88,162,046

205,295,694

293,457,740

(634,347,093)

69,421,514

(1,639,252,295)

1,091,897,800

(342,522,688)

(797,901,934)

(527,579,221)

(482,489,600)

(1,058,995,643)

(34,730,045)

293,457,740

258,727,695

RENATA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

Cash flows from operating Activities:

Collection from customer and other income

Payment of VAT

Payment suppliers


Financing cost

2,185,812,587

(264,905,916)

(1,727,456,964)

193,449,707

(39,765,188)

2,885,087,954

(349,947,277)

(1,922,429,087)

612,711,590

(57,480,494)

3,464,026,571

(446,920,865)

(2,598,987,823)

418,117,883

(87,270,665)

4,524,734,599

(576,244,068)

(2,934,353,785)

1,014,136,746

(99,513,638)

5,752,180,900

(726,458,705)

(3,897,580,701)

1,128,141,494

(117,473,675)

79

Payment of Tax

Net Cash from operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property

Plant & equipment


Sale proceed of property & plant


CASH FLOW FROM FINANCING ACTIVITIES:

Medium term loan

Dividend paid

Net Cash From Financing Activities

Net Cash increase for the year

Opening cash and cash equivalents

Closing cash & cash equivalent

(84,493,229)

69,191,290

(224,799,510)

-

1,928,200

(222,871,310)

179,423,238

(33,160,404)

146,262,834

(7,417,186)

89,452,557

82,035,371

(122,081,499)

433,149597

(417,615,371)

-

534,000

(417,081,371)

(10,373,668)

(39,472,951)

(49,846,619)

(33,778,393)

82,035,371

48,256,978

(113,669,101)

217,478,117

(5,49,504,472)

(7,377,754)

118,000

(556,764,226)

461,688,600

(47,511,431)

414,177,169

74,891,060

48,256,978

123,148,038

(163,539,3720

751,083,736

(642,570,569)

(3,553,225)

930,500

(645,193,394)

(28,738,995)

(57,051,213)

(85,790,208)

20,100,134

123,148,038

143,248,172

(224,608,092)

786,059,727

953,649,098

(48,034,005)

1,325,050

(1,000,358,053)

334,990,264

(85,555,885)

249,434,379

35,136,053

143,248,172

178,384,225

IBN SINA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

CASH FLOW FROM OPERATING ACTIVITIES:

Collection from customer & other

Payment for cost, expenses

Income Tax paid

Financial charges

576,180,783

(540,147,137)

(12,132,926)

(1,168,103)

792,942,685

(759,880,586)

(12,930,838)

(2,267,457)

1,051,888,172

(990,664,427)

(15,373,495)

(4,750,860)

1,277,602,341

(1,186,331,780)

(17,515,888)

(5,098,143)

534,746,999

(471,572,986)

(12,087,212)

(529,664)

80

Net Cash for operating activitiy


Purchase of Fixed assets

Profit from Bank deposits

Net Cash used in Investing activity

CASH FLOW FROM FINANCING

ACTIVITIES:

Payment Dividend

Long term Finance received from Bank

Short term Finance received from Bank

Net Cash Flow From financing

Cash equivalents at the opening

Increase in cash

Cash equivalents at the closing

22,737,467

(38,481,137)

(5,424,000)

(38,906,917)

(19,581,834)

7,600,275

34,223,705

22,520,075

20,349,544

6,350,625

26,700,169

18,085,626

(49,834,248)

(4,590,000)

(50,323,499)

(15,444,615)

5,335,786

51,062,677

38,580,249

26,700,169

6,342,376

34,042,545

41,161,523

(57,687,625)

2,762,444

(54,925,181)

(20,021,662)

14,890,661

64,161,050

60,821,435

34,042,545

47,057,777

81,100,322

69,262,092

(96,977,569)

4,006,827

(92,970,742)

(22,710,459)

12,110,795

29,900,627

19,099,344

81,100,322

(4,609,306)

76,491,016

50,562,537

(26,010,8290)

2,949,000

(25,012,797)

(16,493,943)

(7,742,983)

(120,696)

(24,116,230)

76,491,016

(2,484,489)

74,006,527

81

BEXIMCO PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT

2006 2007 2008 2009 2010

Cash flows from operating activities:

Cash receipts from customer

Cash paid to suppliers


Interest paid

Income tax paid

Net cash generated from operating activity

Cash Flow From Investing Activities:

Acquisition of property, plant


Sales of shares in Bextex ltd.

Disposal of property, plant

Short term investment

Net cash used in Investing activities

Cash flows from financing activities:

Net increase/decrease long term borrow

Issuance of

preference share

4,097,579,564

(2,714,775,105)

1,382,804,459

(229,719,450)

(73,557,767)

1,079,527,242

(1,083,478,873)

(10,000,000)

15,294,792

450,467

(1,077,733,614)

(760,582,2170

81,757,500

3,542,690,128

(2,947,335,836)

595,354,292(222,581,780)

(32,303,532)

340,468,980

(460,904,187)

-

9,730,325

1,928,598

(449,245,2640)

70,386,381

4,006,684717

(2,840,612,734)

1,166,071,983

(214,066,707)

(71,277,001)

880,728,275

(1,180,445,241)

-

-

61,600

(1,180,383,641)

(209,110,438)

4,710,870,128

(3,668,077,506)

842,792,622

(248,370,850)

(73,492,878)

520,928,894

(1,148,198,910)

-

197,500,000

3,553,600

(2500,000,000)

(3,452,871,835)

(45,531,749)

4,100,000,000

6,810,510,631

(4,770,465,029)

2,040,045,602

(508,432,384)

(179,406,569)

1,352,206,649

(2,595,098,749)

(46,545,634)

13,350,073

1,640,596,296

(991,114,714)

17,258,054

82

Net increase/decrease

short term borrow

Net cash generated from financing activitiy

Decrease/increase in cash & cash equivalent

Cash & cash equivalent at the opening

Cash & cash equivalent at the closing

240,805,788

(131,700,637)

150,742,087

152,535,715

428,563,230

581,098,945

(395,234,653)

(61,775,479)

(386,623,751)

(495,400,0350

581,098,945

85,698,910

554,083,900

(57,369,278)

287,604,184

(12,051,182)

85,698,910

73,647,728

(10,339,873)

(127,399,591)

3,916,728,787

984,785,846

73,647,728

1,058,433,574

188,634,698

(153,750,000)

51,922,927

413,014,862

1,058,433,574

1,471,448,436

83

References:

Brigham E. F. & Ehrhardt .M .C (2004). Financial Management Theory & Practice, 10 th

Edition, Thomson South Western, pp.75-98.

Chowdhury, T A and Ahmed, K (2009). “Performance Evaluation of Selected

Pharmaceuticals company in Bangladesh”, International Journal of Business and

Management, Vol.4 No-4, April, pp.86-97

Mansur, I., Zangeneh, H., & Zitz, M. S. H. (1993). “The Association of Pharmaceuticals

company performance ratios and market determined measures of risk”. Applied Economics,

Vol. 25, pp. 1503-1510.

Seiford, L. M., & Zhu, J. (1999). “Profitability and Marketability of the Top Pharmaceuticals

company in Bangladesh”. Management Science, 45(9), 1270-1288

Ray H. Garrison, Eric W. Nooren, Peter C. Brewer (2002). Managerial accounting 9th Edition,

pp. 137-152

Siddique, S. H., and Islam, A. F. M. M. (2001). “Pharmaceuticals Sector in Bangladesh: Its

Contribution and Performance”. Journal of Business Research, Jahangirnagar University,

Vol. 3.

www.square pharma.com.bd

www.renata pharma.com.bd

www.beximco pharma.com.bd

www.ibn sina pharma.com.bd

http://www.google.com/

http://www.answers.com/

Investopedia.com

Annual report of Square Pharma (2006-2007)




Annual report of Beximco Pharma(2006-2007)

Annual report of Beximco Pharma (2007-2008)



84

http://www.answers.com/

http://www.google.com/

http://www.ibn/

http://www.beximco/

http://www.renata/

http://www.square/

Annual report of Renata pharma (2006-2007)

Annual report of Renata Pharma (2007-2008)

Annual report of Renata Pharma (2008-2009)

Annual report of Renata Pharama (2009-2010)

Annual report of Ibn Sina Pharma (2006-2007)




85

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