1.

Introduction
Beacon Pharmaceuticals Limited, a leading Pharmaceutical Company in Bangladesh in respect
of producing high-tech products like anticancer and cardiovascular portfolio. Beacon is a Public
Limited Company listed with Dhaka and Chittagong Stock Exchange, which was incorporated
on 12th September, 2001 as a private limited company with the Registrar of Joint Stock
Companies and Firms, Dhaka, Bangladesh under the companies Act 1994 and subsequently
converted into a Public Limited Company with a mission to improve the quality of human life by
providing innovative pharmaceutical products through continuous research and development by
ensuring stakeholders satisfaction with the aim of becoming one of the most value driven
Pharmaceutical Companies in the World.

Beacon is a very popular name in the Pharmaceuticals Industries in Bangladesh due to its high
quality products of Anticancer, cardiovascular, Gastrointestinal, Antibiotics, Anti - Coagulants,
Protein Supplements, Muscle relaxant, Anti-histamine, Analgesics and NSAIDS etc.

The project is situated at Bhaluka, Mymensingh, Bangladesh on a piece of land of 18 Acres with
the covered area of more than 1 50 000 sft the cost of Sic project stands at more than US$. 50.00
Million.

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MISSION
To improve the quality of human life by providing innovative pharmaceutical products through
continuous research and development ensuring stakeholders satisfaction.

VISION
To be regarded and recognized as one of the most value -driven Pharmaceuticals, companies in
the country.

GOALS
 To be the market leader.
 Serve our customers with quality products at a reasonable price.
 Develop our employees with high potentials and an opportunity of career development.
 Establish strong regional presence.
 Provide our shareholders a steady asset growth and return on investment.
 Recognize the suppliers as our business partners and Competitors as the contributor to the
market value.
 Grow revenue and profit.

2. Assets Analysis:
Beacon Pharma ltd. spends considerable amounts on professional development and training for
their employees. Formal employee training by Beacon pharma is estimated to cost anywhere Tk.
177,968 in 2015 year. If one factors in informal, on-the-job training these costs increases by a
factor of two to three times. Beacon pharma estimated the training expenses that mean
calculating the cost in expenses in 2015 year.

3. Ratio analysis:
Ratio analysis is used to evaluate various aspects of a company's operating and financial
performance such as its efficiency, liquidity, profitability and solvency.

Ratio analysis is a useful management tool that will improve your understanding of financial
results and trends over time, and provide key indicators of organizational performance. Managers
will use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives
can be formed.

4. Financial statement analysis:

Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a
company's financial statements to make better economic decisions. These statements include the
income statement, balance sheet, statement of cash flows, and a statement of changes in equity.

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5. Objectives of Financial Statement Analysis:
 To assess the earning capacity or profitability of the firm.
 To assess the operational efficiency and managerial effectiveness.
 To assess the short term as well as long term solvency position of the firm.
 To identify the reasons for change in profitability and financial position of the firm.
 To make inter-firm comparison.
 To make forecasts about future prospects of the firm.
 To assess the progress of the firm over a period of time.
 To help in decision making and control.
 To guide or determine the dividend action.
 To provide important information for granting credit.

6. Common Size Income Statement:

Common Size Income Statement an income statement in which each account is expressed as a
percentage of the value of sales. This type of financial statement can be used to allow for easy
analysis between companies or between time periods of a company.

7. Common Size Balance Sheet:

A balance sheet that displays both the numeric value of all entries and the percentage each entry
is relative to the total value of related entries. On a common size balance sheet, an asset is
compared to total assets, a liability to total liabilities and stockholder equity to total stockholder
equity.

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8. Ratio analysis of Beacon Pharma Ltd.
Current assets
1. Current ratio:
Current liability
1558,681,879 1526,460,8 23
2012  2013 
897,220,83 5 702,348,38 9
 1.74  2.17
2157,357,7 40 2551,804,8 33
2014  2015 
1030,696,9 23 1097,166,4 05
 2.09  2.33

Current ratio
2.5
2
1.5
1
0.5
0
2012 2013 2014 2015
Series 1 1.73 2.17 2.09 2.33

Current ratio is used to the ability of a company to meet its liabilities with its assets.
sales
2. Inventory turnover:
Inventorie s
979,436,050 1226,906,1 95
2012  2013 
997,651,47 2 959,074,47 4
 .98  1.28
1690,363,4 46 2052,938,8 34
2014  2015 
992,722,70 9 1139,475,5 23
 1.70  1.80

Inventory turnover
2
1.5
1
0.5
0
2012 2013 2014 2015
Series 1 0.98 1.28 1.7 1.8

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Inventory turnover ratio indicates how well the company managed its inventory. High value of
the ratio reflects good management of inventory.

Cash flow from operations

3. Cash flow from operations ratio:
Current Liabilitie s
152,971,18 1 208,752,71 6
2012  2013 
897,220,83 6 702,348,38 9
 0.1705  0.2972
 17.05%  29.72%
69,901,198 63,782,115
2014  2015 
1,062,083, 274 1097,166,4 05
 0.0658  0.0581
 6.58%  5.81%

Cash flow from operations ratio

40.00%
30.00%
20.00%
10.00%
0.00%
2012 2013 2014 2015
Series 1 17.05% 29.72% 6.58% 5.81%

Sales
4. Working capital turnover:
Average working capital
979,436,050 1226,906,1 95
2012  2013 
661,461,04 3 742,786,73 9
 1.48  1.65
1690,363,4 46 2052,938,8 34
2014  2015 
975,386,62 6 1290,649,6 23
 1.73  1.59

Notes: working capital 2013= 824,112,434, 2014= 1126,660,817, and 2015= 1454,638,428

Working capital indicates the operating liquidity of a company. Higher the working capital
higher the ability of the company to pay off its short term obligation and it’s also a signal that the
company can expand its business.

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 Working capital turnover
1.8
1.7
1.6
1.5
1.4
1.3
2012 2013 2014 2015
Series 1 1.48 1.65 1.73 1.59

Net income
5. Return on Assets(ROA):
Total assets
75,261,161 9,131,066
2012  2013 
4511,424,7 80 4251,619,8 86
 .0167  .0021
 1.67%  .21%
24,228,195 38,548,979
2014  2015 
4589,825,3 00 4738,697,5 97
 .0053  .0081
 .53%  .81%

Return on Assets(ROA)
2.00%
1.50%
1.00%
0.50%
0.00%
2012 2013 2014 2015
Series 1 1.67% 0.21% 0.53% 0.81%

It measures how profitably a firm has utilized its assets. The higher the ROA percentage the
more a company is earning, the more efficiently the company is converting its assets to profit.

Operating Income
6. Assets Utilization Ratio:
Total Assets
339,787 ,826 207,391,97 5
2012  2013 
4511,424,7 80 4251,619,8 86
 .0753  .0487
 7.53%  4.87%

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 242,567,61 0 285,033,78 5
2014  2015 
4589,825,3 00 4738,697,5 97
 .0528  .0602
 5.28%  6.02%

Assets Utilization Ratio

10.00%

5.00%

0.00%
2012 2103 2014 2015
Series 1 7.53% 4.87% 5.28% 6.02%

Market price per share

7. Price Earnings Ratio:
EPS
19.10 14.10
2012  2013 
0.33 0.04
 57.88(Times)  352.50(Times)

14.80 14.70
2014  2015 
0.10 0.17
 148(Times)  86.47(Times)

Price Earning Ratio

400
300
Times

200
100
0
2012 2013 2014 2015
Series 1 57.88 352.5 148 86.47

Total debt
8. Debt ratio:
Total assets
1623,736,863 1352,194,3 03
2012  2013 
4511,424,7 80 4251,619,8 86
 .3599  .3180
 35.99%  31.80%
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 1638,781,1 17 1763,021,5 23
2014  2015 
4589,825,3 00 4738,697,5 97
 .3570  .3720
 35.70%  37.20%

Debt ratio
40.00%
35.00%
30.00%
25.00%
2102 2013 2014 2015
Series 1 35.99% 31.80% 35.70% 37.20%

Debt ratio indicates the percentage of assets financed by all types of debts. It reflects the
financial structure of an organization.

Total debt
9. Debt-equity ratio:
Total equity
1623,736,863 1352,194,3 03
2012  2013 
2764,127,2 62 2773,258,3 28
 .5874  .4876
 58.74%  48.76%
1638,781,1 17 1763,021,5 23
2014  2015 
2867,382,0 09 2906,118,9 32
 .5715  .6067
 57.15%  60.67%

Debt-equity ratio
80.00%
60.00%
40.00%
20.00%
0.00%
2012 2013 2014 2015
Series 1 58.74% 48.76% 57.15% 60.67%

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 Total assets
10. Equity Multiple:
Common Equity
4511,424,7 80 4251,619,8 86
2012  2013 
2764 ,127 ,262 2773,258,3 28
 1.63(times)  1.53(times)

4589,825,3 00 4738,697,5 97
2014  2015 
2867,382,0 09 2906,118,9 32
 1.60(times)  1.63(times)

Equity Multiple
1.65
1.6
Times

1.55
1.5
1.45
2012 2013 2014 2015
Series 1 1.63 1.53 1.6 1.63

9. Vertical & Horizontal Analysis:

Statement of Financial Position
Particulars Amount in Amount in Vertical Analysis Horizontal Analysis
Tk. Tk.
2015 2014 2015 2014 Amount Percent
change
Property and
Assets:
Non-Current
Assets:
Property, Plant 1,970,371,46 2,218,349,30 41.58% 48.33% - -
and Equipment 3 0 247,977,837 11.18%
Capital Work in 207,018,146 202,471,300 4.37% 4.41% 4,546,846 2.25%
Progress
Investment in 9,503,154 11,646,959 0.20% 0.25% -2,143,805 -
Shares 18.41%
Total Non- 2,186,892,76 2,432,467,55 46.15% 53.00% - -
Current Assets: 3 9 245,574,796 10.10%
Current Asstes:
Inventories 1,214,003,10 1,064,947,94 25.62% 23.20% 149,055,162 14.00%
4 2
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Accounts 305,198,254 264,808,362 6.44% 5.77% 40,389,892 15.25%
Receivable
Advances, 672,916,938 526,214,829 14.20% 11.46% 146,702,109 27.88%
Deposits & Pre-
payments
Short Term 298,929,314 272,766,267 6.31% 5.94% 26,163,047 9.59%
Investment
Cash and Cash 60,757,224 28,620,341 1.28% 0.62% 32,136,883 112.29
Equivalents %
Total Current 2,551,804,83 2,157,357,74 53.85% 47.00% 394,447,093 18.28%
Assets: 4 1
Total Assets 4,738,697,59 4,589,825,30 100.00 100.00 148,872,297 3.24%
7 0 % %
Shareholders Equity
& Liabilities
Shareholders’
Equity:
Share Capital 2,310,000,00 2,310,000,00 48.75% 50.33% 0 0.00%
0 0
Reserve and 303,038,374 318,828,331 6.39% 6.95% -15,789,957 -4.95%
Surplus
Available for 187,944 0 0.00% 0.00% 187,944 #DIV/0
Sales Reserve !
Retained Earning 292,899,326 238,553,678 6.18% 5.20% 54,345,648 22.78%
Total 2,906,125,64 2,867,382,00 61.33% 62.47% 38,743,635 1.35%
Shareholders’ 4 9
Equity
Non-Current 0
Liabilities:
Long Term Loan 735,412,260 691,746,368 15.52% 15.07% 43,665,892 6.31%
Total Non- 735,412,260 691,746,368 15.52% 15.07% 43,665,892 6.31%
Current
Liabilities:
V. Current 0
Liabilities:
Short term Loan 1,027,609,26 947,034,749 21.69% 20.63% 80,574,514 8.51%
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Share Application 4,633,373 4,656,093 0.10% 0.10% -22,720 -0.49%
Money
Refundable
Accounts 10,554,970 31,109,038 0.22% 0.68% -20,554,068 -
Payables 66.07%
Accrued Expenses 48,332,078 46,865,131 1.02% 1.02% 1,466,947 3.13%
VAT Payable 436,360 565,044 0.01% 0.01% -128,684 -
22.77%
Liabilities for 14,855,521 11,780,229 0.31% 0.26% 3,075,292 26.11%
EWF & WPPF

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Payable to 1,437,842 0 0.03% 0.00% 1,437,842
Employees
Provident Fund
Provision for 8,327,125 0 0.18% 0.00% 8,327,125
Gratuity
Tax -19,026,839 -11,313,361 -0.40% -0.25% -7,713,478 68.18%
Payable/Refundab
le
Total Current 1,097,159,69 1,030,696,92 23.15% 22.46% 66,462,770 6.45%
Liabilities: 3 3
Total 4,738,697,59 4,589,825,30 100.00 100.00 148,872,297 3.24%
Shareholders’ 7 0 % %
Equity &
Liabilities:

Income Statement
Particulars Amount in Amount in Vertical Analysis Horizontal Analysis
Tk. Tk.
2015 2014 2015 2014 Amount Percent
change
Turnover (Net of 2,052,938,83 1,690,363,44 100.00 100.00 362,575,388 21.45%
VAT) 4 6 % %
Less: COGS 1,061,613,36 894,119,555 51.71% 52.90% 167,493,808 18.73%
3
Gross Profit: 991,325,471 796,243,891 48.29% 47.10% 195,081,580 24.50%
Less: Operating
Expenses:
Administrative 96,617,886 76,103,360 4.71% 4.50% 20,514,526 26.96%
Expenses
Marketing, Selling, 609,673,800 477,572,920 29.70% 28.25% 132,100,880 27.66%
& Distribution
Expenses
Total Operating 706,291,686 553,676,280 34.40% 32.75% 152,615,406 27.56%
Expenses:
Operating Profit 285,033,785 242,567,611 13.88% 14.35% 42,466,174 17.51%
Less: Financial 238,236,937 221,684,367 11.60% 13.11% 16,552,570 7.47%
Expenses
Net Profit after 46,796,848 20,883,244 2.28% 1.24% 25,913,604 124.09
Financial %
Expenses
Income from other 7,181,120 32,457,898 0.35% 1.92% -25,276,778 -
sources 77.88%
Net profit before 53,977,968 53,341,142 2.63% 3.16% 636,826 1.19%
IPO Expenses
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Less: 0 14,203,289 0.00% 0.84% -14,203,289 -100%
Amortization of
Deferred IPO
Expenses
Net Profit before 53,977,968 39,137,853 2.63% 2.32% 14,840,115 37.92%
Contribution of
WPPF
Less: Contribution 2,570,380 1,863,707 0.13% 0.11% 706,673 37.92%
to WPPF and
Welfare fund
Net Profit before 51,407,588 37,274,146 2.50% 2.21% 14,133,442 37.92%
Tax:
Less: Provision of 12,851,897 13,045,951 0.63% 0.77% -194,054 -1.49%
Income Tax
Net Profit after 38,555,691 24,228,195 1.88% 1.43% 14,327,496 59.14%
Tax

10. Conclusion:
Ratio analysis is equally for assessing the long term financial ability of the Firm. The long term
solvency is measured by the leverage or capital structure and profitability ratio which shows the
earning power and operating efficiency, Solvency ratio shows relationship between total liability
and total assets. Here, after analyzed the financial ratio and common size statement of the
Beacon Pharma Ltd. it show the positive position in Pharma industry. Company can improve
more and more for better position.

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