Financial Management

Autumn-2020
MBA511
Sec: 1
Report on Ratio Analysis of the three-pharmaceutical company
of Bangladesh for the year 2017, 2018, 2019.

Beximco Square ACI.

Submitted to:
Dr. Samiul Parvez Ahmed
Assistant professor
Department of Finance
Submitted by:
Rokaiya Tabassum Tonni
ID: 2031303
Syed Zafir Alam
ID: 1910733
Esrat Jahan
ID: 1810541

1
 Letter of Transmittal

10th Januray,2021

Dr. Samiul Parvez Ahmed

Assistant professor

Department of Finance
Independent University Bangladesh.

Subject: Report on Ratio Analysis of the three-pharmaceutical company of Bangladesh for the
year 2017, 2018, 2019.

Dear Sir,

With due regard, we would like to inform you that we have finished report on ― three-
pharmaceutical company of Bangladesh Beximco, Square and ACI for the year 2017, 2018,
2019. It is tremendous delight for us since we have effectively finished this report by receiving
yours continues guideline as a supervisor. We have tried to set up this report from our degree of
best to gather significant and adroit data. On the off chance that we remembered any off-base
data for unwittingly please excuse us as your understudy. It is an incredible encounter for us to
make this report. We have tried to make the report comprehensively within the schedule time &
limited recourse.

Yours sincerely

Rokaiya Tabassum Tonni ID: 2031303

Syed Zafir Alam ID: 1910733
Esrat Jahan. ID: 1810541

2
 Executive Summery

Beximco, Square and ACI are three of the largest FMCG Company in Bangladesh. They are
promoting more than 20 brands in different section like health and hygiene, oral care, hair care,
beauty products, laundry products etc. As a local brand they gain consumer’s trust by their
quality products.
This report applies Financial Performance Evaluation of Beximco, Square and ACI. It means
how well the companies performs compared to each other. The main data is collected from the
annual financial reports of the companies from 2017 to 2019 which are been acquired from the
company’s website by our teammates of the group. Different financial ratios are evaluated such
as liquidity ratios, asset management ratios, profitability ratios, debt management ratios and
finally measure the best performance of the company. The graphical through excel file the
analysis and comparisons are applied for the measurement of all types of financial ratio analysis.
Liquidity ratio is conveying the financial state of the company compared to each other and which
company is performing better than the other. It determines the performance of short-term creditor
of the company under the three categories such as current ratio, quick ratio and cash ratio. Asset
management ratio is measured to know how the company is using and controlling its assets.
Profitability ratio and debt coverage ratio are also measured to know overall market position of
the company in the current market. I trust this report will be useful for the administration of the
organizations who are answerable for taking decisions and formulating plans for future. It will
likewise help the creditors who are the supplier of advance capital of the organization. They can
choose whether they need to broaden their credits or not in future.
In the recommendation we have tried our best to give some advice based on their problems that
we have found from the analysis of the companies. So, this report will show a clear picture about
Beximco, Square and ACI’s performance in the last three years.

3
 Table of contents

Sl.No. Topics Page No.

1 5
Introduction

2 6-8
COMPANY OVERVIEW

3 6
Overview of “Beximco”

4 7
Overview of “Square”

5 8
Overview of “ACI”

6 9-18
Ratio Analysis

7 Liquidity Ratios 9-10

8 Profitability Ratios 11-13

9 Receivables Turnover 13-16

10 Debt Utilization Ratios 16-18

11 19-20
Findings

12 Conclusion 20

4
 Introduction

Bangladesh is an industry neighborly nation. There are numerous enterprises in Bangladesh.

Both homegrown and unfamiliar speculators have huge occasion to subsidize or make
enterprises. The pharmaceutical business is perhaps the most mainstream and large industry in
Bangladesh. It is perhaps the most creating areas of Bangladesh. Since mid-eighties, this industry
is becoming quicker. Bangladeshi pharmaceuticals are making prescriptions. Those are satisfying
homegrown interest and sending out in global business sectors.

There are some after components that will impact these has given underneath:

Economic and monetary development: The nation's development is developing consistently. This
is contributing a lot higher in per capita and helping developing and princely individuals. The
pay level will increment throughout the following decade and will impact higher purchaser
spending.

Population development increment: Bangladesh's populace is developing at a speed. As of now

Bangladesh has high populace. This populace development will expand request in not-so-distant
future.

Healthcare: Bangladesh's populace future has expanded as long years. They are expecting better
medical services offices to tackle any wellbeing related issues. As the future will build, the
interest of life care and medical care help will increment.

Environmental wellbeing issues: There is issue of corruption of food, sullied and dirtied food and
climate issues. The individuals of Bangladesh are attempting to defeat from these natural issues.
This will build the interest of thorough medical care administrations for individuals.

5
 COMPANY OVERVIEW

Overview of “Beximco”
Beximco pharmaceuticals ltd is a main maker and exporter of medication. They fused in
Bangladesh in late seventies. The Beximco began as a wholesaler. They imported items from
worldwide Multi-National Companies (MNC) like Bayer's, Germany and Upjohn, USA and sold
in the nearby business sectors. Later they began producing and disseminating under permitting
game plan. Beximco pharmaceuticals is perhaps the biggest exporter of medication in
Bangladesh.

Mission of Beximco pharma:

The mission of Beximco pharma is to advance human wellbeing and prosperity by giving new
contemporary and moderate meds. Assembling in full consistence to keep up worldwide quality
guidelines. They persistently endeavor to build up their center abilities to meet the clinical
necessities of the patients. Additionally, attempt to convey remarkable outcomes for their
investors.

Vision of Beximco Pharma:

The vision of Beximco pharma is to be the most confided in effective and appreciated
pharmaceutical organization in Bangladesh. They have area center around fortifying innovative
work abilities to make organizations across the globe.

History of “Beximco”
Beximco Pharma was established in 1976 and began activities in 1980, fabricating items under
the licenses of Bayer AG of Germany and Upjohn Inc. of USA. It has now developed to turn into
a main drug organization in Bangladesh and it supplies an excess. Today Beximco Pharma
produces and markets its own marked generics for a few sicknesses including AIDS, disease,
asthma, hypertension, and diabetes for both public and global business sectors.

6
 Overview of “Square”
The Square drugs Limited was set up in 1958. It is the biggest drug organization in Bangladesh.
The Square drugs is holding first situation among all worldwide and public organizations since
1985. It was enrolled in stock trade as a public ltd organization in 1991.

Mission of Square Pharmaceuticals:

The mission of Square drugs is to deliver and give new imaginative and quality life and medical
care items for individuals. They attempt to keep up solid moral guidelines in working business.
They likewise attempt to guarantee advantage the partners, investors and the general public.

Vision of Square Pharmaceuticals ltd:

The square drugs consider the to be as a mean material for prosperity of the general public. They
have vision of prosperity of the financial specialists, representatives. They attempt to make and
quickening of abundance through monetary profits made good increase as a piece of human
progress.

Objective of Square Pharmaceuticals:

The goal of Square Pharmaceuticals is to satisfy their main goal and vision by straightforward
business activity utilizing legitimate and social system.

History of “Square”
Square isn't simply effective organization; it is an image of accomplishment. The excursion of
the organization has been extreme yet it figured out how to cruise through and have made it to
the rundown of top organizations of Bangladesh. Square Pharmaceuticals, which is the leader
organization of the combination is the pioneer among the drugs organizations in Bangladesh and
at present acquiring notoriety across the globe.

It was an organization exertion of four youthful and ambitious men whose assurance and energy
saw it through the strife's of the early period. By its long-term SQUARE transformed into a
benefit making association. Today SQUARE Group is turning into a main neighborhood
corporate aggregate in Bangladesh.

7
Square gathering has reliably been at the top situation since 1958 and has endeavored to make all
the progress which has come its path up until now. The organization has transformed into a
public restricted organization in the year 1991. The absolute turnover of the organization was
more than $163 million in the year 2010 with a consistent year on year development of 16.72%.

Overview of “ACI”

With just about thirty years of working together life and causing trust, ACI is one of the top drug
organizations in Bangladesh, utilizing in excess of 5,000 individuals everywhere on the nation.
As a reformist and ground breaking organization, ACI Pharma is devoted to improve the
wellbeing of individuals of Bangladesh through presentation of inventive and dependable drug
item.

Mission of ACI Pharmaceuticals Ltd:

ACI's central goal is to guarantee personal satisfaction of individuals through cutting edge
innovation, abilities and information. They are resolved to guarantee the quest for greatness by
giving magnificent items and by creative cycle. Consumer loyalty is additionally worry of ACI.

Vision of ACI Pharmaceuticals Ltd:

Empowering and aiding the subjective improvement of administrations. Likewise build up
agreeable connection among client and wholesalers.

History of “ACI”

ACI was set up as the auxiliary of Imperial Chemical Industries (ICI) in the then East Pakistan in
1968. After autonomy the organization has been fused in Bangladesh on the 24th of January
1973 as ICI Bangladesh Manufacturers Limited and furthermore as Public Limited Company.
This Company likewise acquired posting with Dhaka Stock Exchange on 28 December, 1976
and its first exchanging of offers occurred on 9 March, 1994. Later on, 5 May, 1992, ICI plc
stripped 70% of its shareholding to nearby administration. In this way the organization was
enrolled for the sake of Advanced Chemical Industries Limited. Posting with Chittagong Stock
Exchange was made on 22 October 1995.

8
 Ratio Analysis
Liquidity Ratios

Current Ratio= Current Assets / Current Liabilities

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019

Current Ratio 9.8 12.93 12.93 2.7 1.34 1.04 1.29 1.18 1.13

Current Ratio

14
12
10
8
6
4
2
0
2017 2018 2019 2017 2018 2019 2017 2018 2019
Square Beximco ACI
Current Ratio 9.8 12.93 12.93 2.7 1.34 1.04 1.29 1.18 1.13

From the graph we can that current ratio of Square Pharmaceuticals Ltd. is really high than other
two competitors. Anther thing is that only Square’s current ratio is increasing as years passed by
but for the other two companies its decreasing year by year. Which means, Square is becoming
more able to pay off its short-term debt whereas the other two company’s ability to pay short
term debt is decreasing.

9
Quick Ratio = (Current Assets-Inventory) / Current Liabilities

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Quick Ratio 7.94 11.23 11.38 1.7 0.76 0.58 0.92 0.92 0.92

Quick Ratio

12
10
8
6
4
2
0
2017 2018 2019 2017 2018 2019 2017 2018 2019
Square Beximco ACI
Quick Ratio 7.94 11.23 11.38 1.7 0.76 0.58 0.92 0.92 0.92

As we can see in the picture Square Pharmaceuticals Ltd has higher quick ratio than the other
two companies. Comparing other two companies it has very high quick ratio. And over the year
quick ratio of square is increasing. But, has very low quick ratio. In 2019 both Beximco and ACI
has quick ratio below 1. Which means their ability to pay short term debt is really poor.

If we see both liquidity ratio Square clearly has good position compared to Beximco and ACI.
With this liquidity Square can easily attract their lenders like Banka and suppliers. But, Beximco
and ACI must have to increase their liquidity ratio to attract their lenders.

10
Profitability Ratios

Return on Sales = Net Income/ Sales

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Return on Sales
60% 49% 41% 14% 14% 13% 2% 1% 3%
or profit Margin

Return on Sales or profit Margin

60%

50%

40%

30%

20%

10%

0%
20 20 20 20 20 20 20 20 20
17 18 19 17 18 19 17 18 19
Square Beximco ACI
Return on Sales or profit Margin 60% 49% 41% 14% 14% 13% 2% 1% 3%

From the graph we can see that Square Pharmaceuticals Ltd has very high profit margin. But, the
profit margin is decreasing over the years. Beximco has quite stable profit margin over the years
but it’s very low from that of Square’s. ACI has the lowest profit margin among these 3
companies. Among the 3 years ACI had highest profit margin in 2019.

11
Return on Equity (ROE) = Net Income/ Total Owner’s Equity

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Return on
21.72% 20.07% 18.64% 8.88% 9.26% 10.18% 9.57% 9.21% 3.82%
Equity (ROE)

25.00% Return on Equity (ROE)

20.00%

15.00%

10.00%

5.00%

0.00%
2017 2018 2019 2017 2018 2019 2017 2018 2019
Square Beximco ACI
Return on Equity (ROE) 21.72% 20.07% 18.64% 8.88% 9.26% 10.18% 9.57% 9.21% 3.82%

Investors of Square pharmaceuticals Ltd get highest amount of return on their investment as
ROE of Square is the heist among these three companies. Though ROE of Square is decreasing
over the years but still investors will still be interested as it is still providing the highest return
among these three companies. ROE of Beximco is increasing over the years but ROE of ACI is
decreasing over the years. In 2019, ACI has the lowest ROE. And, in all the 3 years Square has
the highest ROE.

Return on Assets (ROA) = Net Income/Total Assets

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Return on
24% 18% 15% 7% 6% 6% 2% 1% 1%
Assets (ROA)

12
 Return on Assets (ROA)
25%

20%

15%

10%

5%

0%
201 201 201 201 201 201 201 201 201
7 8 9 7 8 9 7 8 9
Square Beximco ACI
Return on Assets (ROA) 24% 18% 15% 7% 6% 6% 2% 1% 1%

Compared to Beximco and ACI, Square Pharmaceuticals has higher return on asset in every year
although ROA of square is decreasing over the years. Both Beximco and ACI has very low
ROA compared to ROA of square. For both Beximco and ACI, ROA is slightly decreasing over
the years.
So, If we see all the profitability ratios we will see that Square is outperforming than Beximco
and ACI. So, we can say that share holders will be more attracted to invest in Square as they will
get higher return there.

Receivables Turnover

Receivable Turnover = Sales (credit)/Accounts Receivable

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Receivable
19.19 28.39 32.57 7.16 6.4 6.84 6.45 5.16 4.35
Turnover

13
 Receivable Turnover
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
2017 2018 2019 2017 2018 2019 2017 2018 2019
Square Beximco ACI
Receivable Turnover 19.19 28.39 32.57 7.16 6.4 6.84 6.45 5.16 4.35

Square Pharmaceuticals collects its receivables faster than Beximco and ACI. Receivable
turnover ratio of Square is increasing over the year, Beximco fluctuates and for ACI it’s
decreasing over the years. In terms of receivable collection Square Pharmaceuticals is doing
outstanding job.
Average collection period

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Average
collection period 18.76 12.68 11.05 50.30 56.11 52.62 64.42 31.20 85.20

Average collection period

100.00

80.00

60.00

40.00

20.00

0.00
201 201 201 201 201 201 201 201 201
7 8 9 7 8 9 7 8 9
Square Beximco ACI
Average collection period 18.76 12.68 11.05 50.30 56.11 52.62 64.42 31.20 85.20

14
Capital Asset Turnover = Sales / Capital Assets

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Capital Asset
0.7 0.65 0.61 0.49 0.45 0.53 2.45 2.43 2.28
Turnover

Capital Asset Turnover

2.5

1.5

0.5

0
201 201 201 201 201 201 201 201 201
7 8 9 7 8 9 7 8 9
Square Beximco ACI
Capital Asset Turnover 0.7 0.65 0.61 0.49 0.45 0.53 2.45 2.43 2.28

Inventory Turnover = Cost of Goods Sold/Inventory

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Inventory
4.98 5.3 3.98 4.47 3.5 3.9 2.31 2.45 2.25
Turnover

6 Inventory Turnover
5

0
201 201 201 201 201 201 201 201 201
7 8 9 7 8 9 7 8 9
Square Beximco ACI
Inventory Turnover 4.98 5.3 3.98 4.47 3.5 3.9 2.31 2.45 2.25

15
From the graph we can see that Square pharmaceutical generates more sales per BDT of
inventory than Beximco and ACI Pharmaceuticals ltd. Beximco has quite efficient inventory
management team. Among these 3 companies ACI has the lowest inventory turnover ratio which
means they are generating least sales per BDT of inventory compared to other two companies.

Debt Utilization Ratios

Fixed Charge Coverage = Operating Income /“Fixed” Charges

Here we can see average collection period is very low for Square but on the other hand its very
high for ACI. This means Square can collect its receivable faster than other 2 companies. In 2019
Square could collect its receivables only in 11 days approximately. Whereas ACI took 85 days
approximately to collects its receivables.

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Fixed Charge
1.11 1.35 1.31 6.6 6.01 5.8 12.77 9.46 16.89
Coverage

Fixed Charge Coverage

18

16

14

12

10

0
2017 2018 2019 2017 2018 2019 2017 2018 2019
Square Beximco ACI
Fixed Charge Coverage 1.11 1.35 1.31 6.6 6.01 5.8 12.77 9.46 16.89

16
Debt-to-Total Assets Ratio= Debt / Total Assets

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Debt-to-
Total
7% 6% 6% 26% 36% 39% 77% 60% 65%
Assets
Ratio

Debt-to-Total Assets Ratio

80%
70%
60%
50%
40%
30%
20%
10%
0%
201 201 201 201 201 201 201 201 201
7 8 9 7 8 9 7 8 9
Square Beximco ACI
Debt-to-Total Assets Ratio 7% 6% 6% 26% 36% 39% 77% 60% 65%

Square Pharmaceuticals maintains very low debt to total assets ratio. We can say that this
company is mostly financed by its own capital. On the other hand ACI is highly leveraged firm.
So, we can say that most of the assets of Square pharmaceuticals Ltd is financed by its own
capital rather than the borrowed fund. This indicates investing in square is less risky than
investing in Beximco Pharmaceuticals or ACI limited.

17
Times Interest Earned = Operating Income / Interest Expense

Square Beximco ACI

2017 2018 2019 2017 2018 2019 2017 2018 2019
Times
Interest
Earned 8.55 8.73 7.78 4.35 4.17 4.36 2.63 1.71 2.47

Times Interest Earned

9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2017 2018 2019 2017 2018 2019 2017 2018 2019
Square Beximco ACI
Times Interest Earned 8.55 8.73 7.78 4.35 4.17 4.36 2.63 1.71 2.47

Among the three companies, Square pharmaceuticals Ltd has the highest times interest earned
ratio. So, this company has more ability to pay off all its interest expenses. On the other hand,
ACI has lowest interest earned ratio. So, the margin of paying all interest expense is very low for
this company.

So, if we see the debt utilization ratios, we can see square is efficiently managing its debt
compared to the other two companies. It is maintaining low debt and successfully increasing the
ability to pay all the interests. All the debt management ratios show that debt management
policies of Square Pharmaceuticals are very efficient on the other hand ACI should carefully
choose and implement their debt management policies to sustain in the industry.

18
 Findings

A) To which company you would extend short-term credit and why?

Among these three companies, I would extend short-term credit to Square. Because the Current
ratio and the Quick ratio of this company is way much higher than the other two companies. In
the year 2017, 2018 and 2019 the current ratio was 9.8x, 12.93x and 12.93x respectively and the
Quick ratios were 7.94x, 11.23x and 11.38x respectively. On the other hand, the Current ratio
and the Quick ratio of Beximco and ACI were around 2x on average. This means that Square has
more liquidity than other two companies. They can turn their assets into cash and repay short
term credits whenever needed. To pay the credits Square has more current assets than their
current liabilities. So, this won’t be a problem for the creditor to get the money back in time. So,
as a creditor, it’s safer to extend short-term credit to Square than the two other companies.

B) To which company you would extend long-term credit and why?

Among these three companies, Square is safer than the rest to extend long-term credit because
the debt ratio of Square is very much lower than Beximco and ACI. The debt ratio for Square is
7%, 6% and 6% for the year 2017, 2018 and 2019 respectively. This means that only 6-7% of the
total asset is debt. So, a creditor can easily extend long-term credit as there is a very low risk of
bankruptcy in case of Square. But on the other hand, Beximco and ACI has a higher debt ratio
which ranges from 26% to 77% occasionally. This means it won’t be wise to extend long term
credit to these two companies any further.

C) To which company’s manger you would award performance bonus and

why?

The manager of ACI Company should be awarded the performance bonus. Because ACI has a
higher Capital asset turnover or total asset turnover ratio which is 2.45x, 2.28x and 2.23x for the
year of 2017, 2018 and 2019 respectively. Whereas Beximco and Square has a TAT of below 1
each year. This proves that the assets of ACI is turned into sales better than the two other
companies.

19
 D) Which company’s stock you will buy and why?

For investing, Square is better than the rest of the two companies. Because the Return on assets
and Return on equity is higher for Square. ROA for Square is 24%, 18% and 15% for the years
2017, 2018 and 2019 respectively. This means the assets make 15-24% returns each year which
is lower for the two other companies. ROE for Square is 21.72%, 20.07% and 18.64% for the
years 2017, 2018 and 2019 respectively which means that every stock of Square makes 18.64%
to 21.72% return on the investment. Beximco makes a highest return of 10.18% and ACI makes
a highest return of 9.57% on equity which is very lower compared to the returns on Square’s
stocks. So, it would be wise to make an investment on the stocks of Square’s.

Conclusion

This report applies Financial Performance Evaluation of Beximco, Square and ACI. It means
how well the companies performs compared to each other. The main data is collected from the
annual financial reports of the companies from 2017 to 2019 which are been acquired from the
company’s website by our teammates of the group. Different financial ratios are evaluated such
as liquidity ratios, asset management ratios, profitability ratios, debt management ratios and
finally measure the best performance of the company. The graphical through excel file the
analysis and comparisons are applied for the measurement of all types of financial ratio analysis.
Liquidity ratio is conveying the financial state of the company compared to each other and which
company is performing better than the other. By doing this report we get more knowledge of
how ratio analysis can be used in real life scenario to find actual position of the company in the
relative industry.

20
Appendix

21
 Balance Sheet of Square Pharmaceuticals Limited

2017 2018 2019

Assets
Non-current assets 29,355,222,227 32,831,465,294 33,734,410,538
Propert,plant & equipment- 19,323,568,164 20,545,437,633 20,853,956,270
carrying value
Investment-long term 588,808,565 940,754,391 655,408,674
investment-associates 7,504,636,420 8,454,064,733 9,211,605,860
undertaking
investment in fair value 1,938,209,078 2,891,208,537 3,013,439,734

Current Assets 23,175,830,022 28,441,536,241 38,411,642,036

inventories 3,730,808,243 4,432,935,118 4,596,512,673
trade debtors 2,204,014,900 1,616,544,248 1,561,818,167
advance,deposits & 1,450,936,735 2,280,668,747 2,312,201,184
prepayments
short term loan 21,386,290 3,131,975,363 2,937,071,066
cash & cash equivalents 15,768,683,854 16,980,412,765 27,004,038,946

Total Assets 52,531,052,249 61,273,001,535 72,146,052,574

22
Shareholders' equity &
liabilities

Shareholders' equity 49,027,700,210 57,816,566,831 67,880,617,172

share capital 6,859,452,000 7,373,910,900 7,890,084,660
share premium 2,035,465,000 2,035,465,000 2,035,465,000
general reserve 105,878,200 105,878,200 105,878,200
tax exemption reserve 852,508,043 1,949,557,722 2,211,743,936
gain on marketable securities 596.561,713 192,272,252 145,585,283
retained earnings 38,577,835,254 46,159,482,757 -939,072
non-controlling interest 12,674,141 24,901,060 55,492,799,165

Non-Current Liabilities 1,129,233,846 1,231,133,152 1,294,346,873

deferred tax liabilities 1,129,233,846 1,231,133,152 1,294,346,873

Current Liabilities 2,361,444,052 2,200,400,492 2,971,088,529

trade creditors 843,937,277 524,676,136 716,988,428
liabilities for expenses 27,576,542 89,665,092 239,913,331
liabilities for other finance 1,489,930,233 1,586,059,264 2,014,186,770

Total Shareholders' Equity & 52.531,052,249 61,273,001,535 72,146,052,574

Liabilities

23
 Income Statement of Square Pharmaceuticals Limited

2016-2017 2017-2018 2018-2019

Gross Revenue 42,284,675,530 45,886,959,303 50,866,867,352
value added tax 5,741,535,424 -6,233,127,665 -6,833,233,083
Net Revenue 36,543,149,424 39,653,831,638 44,033,634,269
COGS -18,274,858,914 -20,089,819,913 22,091,384,351
Gross Profit 18,268,281,192 19,564,011,725 21,942,249,918

Operation expenses -5,972,216,599 -6,783,069,126 -7,799,800,561

selling & distribution exp. -5,056,851,926 -5,751,408,276 -6,603,747,456
administrative exp. -915,210,284 -1,031,567,251 -1,195,957,909
finance cost -154,389 -93,599 -95,196
Profit From Operations 12,296,064,593 12,780,942,599 14,142,449,357
other income 1,093,575,634 1,768,094,011 2,310,360,094

Profit Before WPPF 13,389,640,227 14,549,036,610 16,452,809,451

allocation for WPPf -646,577,651 -701,097,850 -791,921,561
Profit Before Tax 12,743,062,576 13,847,938,760 15,660,887,890
income tax exp. Current -2,949,150,787 -3,255,148,172 -3,876,979,330
income tax exp. Deferred -74,735,584 -101,899,306 -63,213,721

Profit After Tax 9,719,176,205 10,490,891,282 11,720,694,839

profit/loss from associate 928,615,539 1,115,299,919 931,706,302
undertakings

Profit After TAX 10,647,791,744 11,606,191,201 12,652,401,141

other comprehensive income:
gain/loss 329,775,134 -404,289,461 -46,686,969
comulative adjustment - -939,072

24
TOTAL COMPREHENSIVE 10,977,566,878 11,201,901,740 12,604,775,100
INCOME FOR THE YEAR

Profit attribute to:

owners of the company 10,637,215,898 11,593,964,282 12,645,724,268
non-controlling interest 10,575,846 12,226,919 6,676,873
10,647,791,744 11,606,191,201 12,652,401,141
Total compressive income
attributable to:
owners of the company 10,966,991,032 11,189,674,821 12,598,199,525
non-controlling interest 10,575,846 12,226,919 6,575,575
10,977,566,878 11,201,901,740 12,604,775,100

Earnings per share 16 14.69 16

numbers of shares used to 789,008,466 789,008,466
compute EPS

25
 Balance Sheet of Beximco Pharmaceuticals Limited

Balance Sheet 2017 2018 2019

ASSETS
Non-Current Assets 24,953,316,701 31,332,493,87 34,999,402,74
2 1
Property, Plant and Equipment- 24,472,468,013 28,645,104,79 32,209,440,04
Carrying Value 8 4
Intangible Assets 462,968,347 525,695,416 610,121,698
Investment in Shares 17,880,341 30,749,850 29,325,720
Investment in Subsidiary 0 2,125,186,000 2,145,185,900
Other Investment 0 5,757,808 5,329,379

Current Assets 9,130,816,169 10,832,521,56 12,793,492,48

7 9
Inventories 3,468,089,061 4,665,449,461 5,573,549,171
Spares & Supplies 636,102,892 654,781,270 715,341,316
Accounts Receivable 2,167,339,867 2,736,944,147 3,325,890,597
Loans, Advances and Deposits 1,697,679,418 2,066,840,961 2,273,040,821
Short Term Investment 886,576,906 339,397,174 323,364,536
Cash and Cash Equivalents 275,028,025 369,108,554 582,306,048

TOTAL ASSETS 34,084,132,870 42,165,015,43 47,792,895,23

34,084,132,870 9 0

EQUITY AND LIABILITIES

Shareholders’ Equity 25,072,425,900 27,104,389,93 29,600,843,24
1 0
Issued Share Capital 4,055,564,450 4,055,564,450 4,055,564,450
Share Premium 5,269,474,690 5,269,474,690 5,269,474,690
Excess of Issue Price over Face 1,689,636,958 1,689,636,958 1,689,636,958

26
Value of GDRs
Capital Reserve on Merger 294,950,950 294,950,950 294,950,950
Revaluation Surplus 1,190,203,818 1,159,277,845 1,131,853,004
Unrealized Gain/(Loss) 3,875,065 4,356,762 2,504,203
Retained Earnings 12,568,719,969 14,631,128,27 17,156,858,98
6 5

Non-Current Liabilities 5,605,667,422 6,963,764,382 6,296,204,472

Long Term Borrowings-Net off 2,635,907,025 3,849,478,727 2,544,732,500
Current Maturity (Secured)
Liability for Gratuity and 1,117,094,429 1,224,462,270 1,748,900,794
WPPF & Welfare Funds
Deferred Tax Liability 1,852,665,968 1,889,823,385 2,002,571,178

Current Liabilities and 3,406,039,548 8,096,861,126 11,895,847,51

Provisions 8
Short Term Borrowings 1,239,757,995 4,962,098,246 8,701,024,499
(Secured)
Long Term Borrowings-Current 715,790,200 1,453,819,555 1,487,254,413
Maturity (Secured)
Creditors and Other Payables 783,838,444 939,538,235 1,037,089,244
Accrued Expenses 245,375,014 303,447,824 496,178,291
Dividend Payable 353,217 4,540,814 7,002,833
Income Tax Payable 420,924,678 433,416,452 167,298,238

TOTAL EQUITY AND 34,084,132,870 42,165,015,43 47,792,895,23

LIABILITIES 9 0

27
 Income Statement of Beximco Pharmaceuticals Limited

Income Statement 2017 2018 2019

Net Sales Revenue 15,508,776,972 17,380,728,001 21,156,331,039

Cost of Goods Sold -8,323,895,349 -9,255,504,681 -
11,365,929,686
Gross Profit 7,184,881,623 8,125,223,320 9,790,401,353
Operating Expenses -3,736,675,551 -4,143,623,455 -4,991,627,668
Administrative Expenses -522,396,449 -595,185,629 -663,362,904
Selling, Marketing and Distribution -3,214,279,102 -3,548,437,826 -4,328,264,764
Expenses
Profit from Operations 3,448,206,072 3,981,599,865 4,798,773,685
Other Income 144,852,831 64,973,584 245,184,534
Finance Cost -557,003,162 -512,099,369 -938,074,846
Profit Before Contribution to WPPF 3,036,055,741 3,534,474,080 4,105,883,373
& Welfare Funds
Contribution to WPPF & Welfare -144,574,083 -168,308,290 -195,518,256
Funds

Profit Before Tax 2,891,481,658 3,366,165,790 3,910,365,117

Income Tax Expenses -664,786,534 -807,194,527 -886,864,143

Current Tax -591,982,589 -790,580,483 -792,365,900
Deferred Tax Income/ (Expense) -72,803,945 -16,614,044 -94,498,243
Profit after Tax for the Period 2,226,695,124 2,558,971,263 3,023,500,974
Other Comprehensive Income - 2,579,507 481,697 -1,852,559
Unrealized Gain/(Loss)
Total Comprehensive Income for 2,229,274,631 2,559,452,960 3,021,648,415
the Period

Earnings Per Share (EPS) 5.49 6.31 7

28
 Balance Sheet of ACI Limited

2017 2018 2019

Assets
Property, plant and equipment 19,453,928,098 9,239,752,048 9,891,773,622
Investments 1,067,888,774 2,558,852,523 2,644,630,237
Intangible assets 515,115,470 420,961 267,889
Deferred tax assets 85,910,725 66,022,919
Non-current assets 21,122,843,066 11,799,025,53 12,602,694,667
2

Inventories 10,550,939,071 5,112,920,562 5,476,073,385

Trade receivables 8,530,045,056 4,863,502,651 5,158,495,642
Other receivables 912,543,208 831,162,716 279,084,513
Inter-company receivables 13,277,557 10,316,025,95 14,925,700,916
0
Advances, deposits and 4,328,616,073 1,682,853,702 2,177,759,800
prepayments
Cash and cash equivalents 1,511,754,437 1,081,128,975 992,956,408
Current assets 25,847,175,402 23,887,594,55 29,010,070,664
6
Total assets 46,970,018,468 35,686,620,08 41,612,765,331
8

Equity
Share capital 438,204,010 482,024,411 498,895,265
Share premium 402,310,367 402,310,367 402,310,367
Reserves 4,579,908,446 3,543,672,366 3,633,116,809
Retained earnings 5,153,137,802 9,871,498,761 9,849,767,795
Equity attributable to the 10,573,560,625

29
owners of the company
Non-controlling interest 65,498,322
Total equity 10,639,058,948 14,299,505,90 14,384,090,236
6

Liabilities
Employee benefits 788,032,113 807,636,638 941,229,157
Long term bank loan 5,151,447,744 141,353,004 567,627,935
Deferred tax liabilities 724,314,235 120,722,017
Non-current liabilities 6,663,794,092 1,069,711,660 1,508,857,092

Bank overdraft 1,696,737,293 2,374,634,769 2,633,244,019

Loans and borrowings 19,680,268,387 11,340,784,23 12,827,624,558
3
Trade payables 2,347,414,417 794,002,138 1,199,383,457
Other payables 3,325,117,640 2,352,363,174 2,755,802,022
Inter-company payables 2,272,416,036 4,549,730,210
Current tax liabilities 2,617,627,690 1,183,202,172 1,754,033,737
Current liabilities 29,667,165,427 20,317,402,52 25,719,818,003
2
Total liabilities 36,330,959,519 21,387,114,18 27,228,675,095
2
Total equity and liabilities 46,970,018,468 35,686,620,08 41,612,765,331
8

30
 Income Statement of ACI Limited

For the Year For the Year For the Year

Ended 30th June Ended 30th June Ended 30th June
2017 2018 2019
Revenue 47,668,027,608 56,123,321,109 21,795,582,592
Cost of sales -33,563,743,344 -40,257,620,969 -11,909,984,608
Gross profit 14,104,284,264 15,865,700,140 9,885,597,984
Administrative, selling and -10,901,743,654 -12,782,328,798 -8,155,678,020
distribution expenses
Other income/(loss) 82,477,299 161,703,349 -68,984,499
Operating profit 3,285,017,909 3,245,074,690 1,660,935,465
Gain from sale of Brands 403,900,000 540,300,000
Share of profit of equity accounted 143,913,167 35,426,012 -13,600,000
investees
Net Finance costs -1,457,820,520 -2,231,054,208 -665,601,925
Profit before contribution to 2,375,010,556 1,589,746,494 981,733,540
WPPF
Contribution to WPPF -186,023,965 -168,083,901 -58,117,222
Profit before tax 2,188,986,591 1,421,662,593 923,616,318

Current tax -1,166,431,472 -1,374,709,885 -570,831,565

Deferred tax income/(expense) 13,393,333 363,597,434 196,683,207
Income tax expense -1,153,038,139 -1,011,112,451 -374,148,358
Profit after tax 1,035,948,452 410,550,142 549,467,960

Earnings per share 22.1 26.41 11.01

31
 Ratios

Square Beximco ACI

Ratio 2017 2018 2019 2017 2018 2019 2017 2018 2019
Liquidit Current 9.8 12.93 12.93 2.7 1.34 1.04 1.29 1.18 1.13
y Ratio Ratio
Quick Ratio 7.94 11.23 11.38 1.7 0.76 0.58 0.92 0.92 0.92
Profitabi Return on 60% 49% 41% 14% 14% 13% 2% 1% 3%
lity Sales or profit
Ratio Margin
Return on 21.72 20.07 18.64 8.88 9.26 10.18 9.57 9.21 3.82
Equity (ROE) % % % % % % % % %
Return on 24% 18% 15% 7% 6% 6% 2% 1% 1%
Assets (ROA)
Asset Receivable 19.19 28.39 32.57 7.16 6.4 6.84 6.45 5.16 4.35
Utilizati Turnover
on Capital Asset 0.7 0.65 0.61 0.49 0.45 0.53 2.45 2.43 2.28
Ratios Turnover
Inventory 4.98 5.3 3.98 4.47 3.5 3.9 2.31 2.45 2.25
Turnover
Debt Fixed Charge 1.11 1.35 1.31 6.6 6.01 5.8 12.7 9.46 16.8
Utilizati Coverage 7 9
on Times 8.55 8.73 7.78 4.35 4.17 4.36 2.63 1.71 2.47
Ratios Interest
Earned
Debt-to-Total 7% 6% 6% 26% 36% 39% 77% 60% 65%
Assets Ratio

Average 18.76 12.68 11.05 50.3 56.1 52.62 64.4 31.2 85.2
collection 1 2 0 0
period

32
33