1

Bangladesh University of Professionals

Directed by

Sharmin Sultana Sumi

On

Analysis of Financial Statements of ACME Labratories

Course Name: Introduction to Business

Course Number: ALD1104

Submitted to

Sharmin Sultana Sumi

Lecturer

Department of Business Administration in Finance & Banking

Faculty of Business Studies (FBS)

Bangladesh University of Professionals (BUP)

Submitted by

Group-05

Sec-A

Batch- 7

Supervised by

Sharmin Sultana Sumi

Date of Submission: 3 November, 2022

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03 November, 2022

Mst. Sharmin Sultana Sumi

Lecturer
Bangladesh University of Professionals

Subject: Submission of Term Paper on Acme Laboratories Ltd..

Dear Ma’am,
With great gratification we are submitting our term paper on “Acme Laboratories” that you
have assigned to us in your Introduction to Business course. It is really an enormous prospect for
us to congregate vast information and grasp the subject matter in an appropriate way. We have
found the research activity quite interesting, beneficial & insightful and tried our level best to
prepare an effective & creditable report.

Our anticipation will assist to provide a clear idea about the Acme Pharmaceuticals and through
extensive secondary and some primary research we have gathered the necessary information that
would facilitate the business model analysis of ACME Laboratories and their overall
functioning. We welcome your entire query & take pride to answer them.
Sincerely yours,

Group Members

ID Name Section Semester Batch

3
 2222151111 Partha Protim Barman

2222151141 Lamyea Jahan

2222151143 Mahdee Bin Azam A 1st 7th

2222151153 Km Yeardin Saiful

Khan

2222151155 Sadman Sakib

Executive Summary

Analysis means the detailed examination of the elements or structure of something. The name of
term paper is “Term Paper on Acme Pharmaceuticals”. ACME is one of the leading
pharmaceuticals company in Bangladesh. The drug market of ACME is possessing huge market
shares in Bangladesh ACME laboratories. The ACME is a local and export oriented
Pharmaceuticals Company situated at Dhaka, incorporated as a proprietorship firm in 1954.

Business model analysis of Acme Pharmaceuticals involves explaining impact of

macroeconomic factors, which is consisted of Local and Global Impact, PESTEL analysis stands
for "Political, Economic, Social, and Technological, Environmental and Legal analysis" and
describes a framework of macro-environmental factors used in the environmental scanning. It

4
also includes SWOT analysis, where strength, weakness, opportunity and threats are analyzed,
management structure, marketing mix consisting of product premium / standard, pricing strategy,
place and distribution strategy, promotion methods, financing consisting of debt to equity mix,
sources of financing, Investment pattern, dividend history, accounting analysis including
important ratio analysis. Practice of ethics Social, Environmental consciousness. Acme
consistently works with environmental issues in accordance with their mission statement. Acme
follows all environmental laws and regulations. For them to continue to be successful in the
worldwide market, ACME Pharma has a long-standing commitment to uphold the law wherever
they conduct business and to conduct all of their operations with the greatest ethical standards.
According to GMP Regulations, WHO standards, and local legislation, Acme maintains a high
standard of pollution-free environment.
To make the project more environmentally friendly, the company changed its MDI facility in
2011 from a CFC-based to an HFA-based system. Acme actively works to lower energy usage at
its offices and production sites. Acme manages manufacturing operations carefully and recycles
water whenever it can to reduce water usage at their manufacturing facilities.

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 Table of Contents

1. Introduction of the report______________________________________________________6

1.1 Origin of the Study____________________________________________________6
1.2 Scope of the Study____________________________________________________7
1.3 Objective of the Study_________________________________________________7
1.4 Methodology of the Study______________________________________________8
1.5 Limitations of the Study________________________________________________9
2. Main
Body_________________________________________________________________01
2.1 Impact of Macroeconomic Factors / Environment on ACME Laboratories________10
2.1.1 Local
Impact_______________________________________________________11
2.1.2 Global Impact______________________________________________________12
2.2 Porters Five forces Analysis____________________________________________13

2.2.1 PESTEL Analysis____________________________________________14

2.3 Business of the Company ______________________________________________17

2.3.1 Business Model _____________________________________________18
2.3.2 Value addition_______________________________________________20
2.3.3 Business Value Creation Process ________________________________20
2.3.4 SWOT Analysis_____________________________________________22
2.4 Management Structure________________________________________________23
2.5 Marketing Mix______________________________________________________23
2.5.1 Product- Premium / Standard__________________________________23
2.5.2 Pricing Strategy _____________________________________________24
2.5.3 Place / Distribution Strategy __________________________________24
2.5.4 Promotion Methods__________________________________________24

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 2.6 Financing __________________________________________________________25
2.6.1 Debt to Equity Mix__________________________________________25
2.6.2 Source of Financing__________________________________________25
2.7 Accounting_________________________________________________________26
2.7.1 Accounting Methods Followed _________________________________26
2.7.2 Important Ratio Analysis_____________________________________26
2.8 Practice of
Ethics_____________________________________________________34
2.8.1 Social and Environment Consciousness while Doing
Business__________34
2.9 Overall Conclusion of the Current Condition of the
Company__________________35
3. Conclusion________________________________________________________________35
4. References________________________________________________________________37
5. Appendix________________________________________________________________38

7
 1. Introduction of the report

Performance analysis of a company is generally related to how efficiently a company can use its
assets, shareholder equity and liability, revenue and expenses. Financial ratio analysis is one of
the important tools of performance analysis, determine the financial position of the company.

 pharmaceuticals company and to make a decision of how efficient the manufacturing company,
its operation and management and how well the company has been able to use its resources and
earn profit. We used ratio analysis for easy measurement of liquidity position, asset management
condition, profitability and market value and debt coverage situation of the textiles company for
performance analysis. It analyzes the company utilized of its assets and control of its expenses
and determines the coverage of liquid assets to short-term liabilities. It measures pharmaceutical
companies' overall efficiency and performance. We also used to analysis the pharmaceutical
companies’ previous financial performance and to establish the future trend of financial position.
We selected ACME Laboratories Limited to discuss and analyze the financial condition of the
company. This is one of the famous pharmaceutical companies of Bangladesh. Their mission is
to produce and provide quality products to people around the world, maintain a strong ethical
standard in business operations and also ensure benefit to the shareholder, stakeholder, and
society.

1.1 Origin of the Study

The study is conducted as a part of our Introduction to Business course, assigned by our course
instructor Sharmin Sultana Sumi, Lecturer, Bangladesh University of Professionals. We tried to
bring up the business analysis of ACME Laboratories. The findings of our research are studied
and interpreted in this paper.

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1.2 Scope of the Study
The scope of the study is to have an idea about Financial Performance Analysis of
ACMELaboratories Limited. The report starts with the outline of the organization in focus,
presenting the mission and vision of the organization. It is accompanied by a global perspective
and a look into the future. The researcher provides information about the strengths, weaknesses,
opportunities and threats of the organization. Those who are looking for information about
Financial Performance Analysis of ACME Laboratories Limited might get help from this report.
The study explores the present market scenario of ACME Laboratories Limited and future
market growth prospects in Bangladesh..

1.3 Objective of the study

The following report has two types of objectives which are described as follows:

1) Broad Objectives: 

To get an overall idea about the financial performance of ACME Laboratories Limited.

To relate the theoretical knowledge to the original financial data of ACME Laboratories Limited.

2)Specific Objectives:

To understand the theoretical aspect of financial performance.

To analyze the financial statements of ACME Laboratories Limited by using financial tools

To know about different ratios applicable for measuring financial performance of a company.

To identify the strength and weakness of the company based on the financial performance.

Finally, to make some recommendations and suitable conclusions regarding financial

performance of ACME Laboratories Limited.

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1.4 Methodology of the Study

Net profit, total assets, total liabilities, number of shares, current assets. were selected to
measure the performance. In this study the main analytical area is financial performance and
analytical tools are the various statistical techniques, spread ratios, burden ratios, profitability
ratios and productivity ratios. All the necessary data are taken and analyzed in a systematic
manner. The Main sources of data used in the study are annual reports, annual accounts and
official records of ACME Laboratories Limited. Moreover, published literature and journals,
Bangladesh Stock Exchange, web-sites of different companies and Books are used. The data
collected for the purpose have been analyzed and examined critically in the light of various
statistical techniques and selected accounting ratios.

Planning:

To start working for this term paper at first, the author plans about how we will work for it.

Data collecting:

 After planning the author starts working for this term paper and starts collecting data. There
is no primary data. The author only collected data from secondary sources. Here the author
used the internet for gathering the information on the topic. As this is a research work on
scientific research and theories, the author took the references from various websites. All the
information provided on this term paper is from secondary sources, such as various links,
webpages and annual reports.

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Data analyzing:

After collecting data the author starts analyzing those data. The author eliminated and
processed those data for analysis.

Make a conclusion:

After analyzing data the author try to make a proper conclusion of this term paper based on
data analyzing.

1.5 Limitations of the Study

The present study was not out of limitations. We have faced some obstacles at the time of
preparing this report. But as an intern it was a great opportunity for me to know the Business
model of Acme Pharmaceutical Limited. Some constraints are as follows. 

● Because of the limitations of various sources of information the report doesn't

contain much important information and data. So, I was incapable of providing some
valuable information.
● Some essential data could not be gathered because of confidential matters of the
organization.

● Could not find data regarding Source of Financing and Investment pattern.

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 Main Body
2.1 Impact of Macroeconomic Factors / Environment on ACME Laboratories:
Economies of Scale:
As the scale economies deter entry in this industry and cannot be achieved at the beginning of
operation, potential new entrants have to start on a large scale which is a costly and perhaps a
risky move. Sustainable profitability certainly depends on the scale of the operation and
production of large volume. Potential entrants have to encounter scale-related barriers in this
industry not just in production but in advertising, marketing and distribution and raw material
purchasing as well.

Bargaining power of suppliers:

Bargaining power of suppliers in this industry is moderately low. Most of the manufacturers in
this industry import raw materials directly from abroad which constitute low dependency on
the raw materials suppliers. Also the number of suppliers is very high in the industry and the
purchase volume is big, which are playing positive role for the buyers to bargain over
suppliers. Therefore, the dependency on suppliers and the switching cost to other suppliers are
relatively low in this industry.

Bargaining power of buyers:

As the end-consumers are not the decision maker here, the buyer characteristics in
pharmaceutical industry are somewhat different from other consumer products. The decision
makers are mainly physicians and chemist or retailers. There are around
120,000 physicians around the country to whom the competitors visit regularly to promote
their products. Almost all promotional expenditures of the firms, a very big portion of any
firm’s yearly sales revenue, is utilized to convince these segments. Also as most of the
products in this industry are nearly identical and there are significant numbers of brands
existing in this market, the bargaining power of buyers is very high. The unique power of
physicians to make any band establishment and in some case, unethical practices of sharing
mutual benefits among physicians and firms have increased this bargaining power even
higher.

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2.1.2 Local Impact
Brand preference and customer loyalty:
As mass media advertising is not allowed in the pharmaceutical industry, Promotional and
advertisement activities are done through physicians, chemists or retailers. In case of
physicians it’s done through direct contact, providing free samples, arranging seminars,
providing necessary information etc. In case of chemists or retailers it’s done through
discounts, commissions etc. Usually the end user of the products must follow the physician’s
prescription, so they don’t have any choice in brands. So brand preference and loyalty of the
consultant class is playing a vital role in establishing relative market share in this industry. It’s
very hard for any new entrant to build preference and loyalty to these special segments within
a short period of time.

Distribution channel:
The distribution channel in the industry is not that much organized and therefore all the big
companies have to develop their own channel by their own work force, which is very difficult
and time consuming for new entrants.

Threat from substitute products:

Three factors play vital role in strengthening the competitive pressure from substitute products
which are whether attractively priced substitute products are available, how satisfactory the
substitute products are in terms of quality, performance and other relevant attributes, and the
ease with which buyers can switch to substitutes. Although there is no direct substitute for
pharmaceuticals products, there are some cases where limited substitutes are available. The
substitute for general antibiotic is Ayurvedic and Homeopathic and Herbal medicine. In
Bangladesh the rural people who constitute large share of population highly depend on
Ayurvedic and Homeopathic medicine. In urban areas the trend is more toward medicines
with herbal ingredients rather than chemical. So, in rural areas affluent people pay good
money for Ayurvedic and Homeopathic medicine. They are also very cheap, as they are not
scientifically produced. The rural people being ignorant and uneducated are unaware about the
consequences of taking these medicines. They buy them as they offer cheaper price.
Sometimes fake village doctors use religious believes as a backdrop for selling false medicine

14
 and reject the medicines produced by pharmaceutical companies. As long as the people of our
country don’t educate themselves these false medicine will be playing significant role as
substitute products.

2.1.3 Global Impact

International trade restrictions:
International trade restrictions and government regulation played a major role to impose high
barriers for foreign companies in Bangladesh market. Under the existing related law, foreign
companies can only export or sell medicine in the local market without affiliation with a local
company, but for manufacturing it must go for fulfilling the local law. This has increased the
entry barriers for foreign companies but reduced the same for local companies.

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2.2 Porters Five forces Analysis

Five Forces Model

Porter’s Five Forces Analysis

As we know, Michael Porter’s analysis of five primary competitive forces is the key to
analyze the state of competition in the industry. Following are the brief of the competitive
forces that contribute to shape pharmaceutical business in Bangladesh.

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2.2.1 PESTEL Analysis
PESTEL analysis:
PESTEL analysis stands for "Political, Economic, Social, and Technological. Environmental and
Legal analysis" and describes a framework of macro-environmental factors used in
the environmental scanning component of strategic management.

PESTEL ANALYSIS

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 POLITICAL ECONOMICAL

•ACME Pharma has a long-standing • ACME Pharma common stock is

commitment to comply with the law
wherever they operate and to conduct all
business activities with the highest ethical
standards which is critical for their continued
success in the global marketplace.
•The ACME Pharma governance body
ensures the company serves the interests of
shareowners and other key stakeholders with
the highest standards of responsibility,
integrity and compliance with all laws.
•Customers, community groups, political
organizations and others regularly approach
ACME Pharma to support civic and political
activities.
•Growing political focus and pressure on
healthcare.
•Government interest in ensuring healthcare
for all and solicit savings
•Harmonization of healthcare across the
industry
listed on the Dhaka Stock Exchange (DSE).
• The Board places a premium on
aligning the interests of executives with those
of the Company’s stockholders. The Human
Resources and Compensation Committee
shall adopt, and annually monitor compliance
with, stock ownership guidelines applicable
to directors and senior executives
• Global economic crisis
• Reduction in individual disposable
income
• Increased number of buying groups
putting pressure on price
• Reluctant of consumers to spend in
healthcare
• Increased pressure from shareholders

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 PESTEL ANALYSIS

SOCIAL/SOCIO-CULTURAL TECNOLOGICAL

• Patient awareness and changing • They continue applying new

expectations technology and fresh medical knowledge to
• Increasing age of population and both enhance existing resource.
growth in obesity. • Customized treatment
• Market likely to grow with increasing • Direct to patient advertising
health concerns • Direct patient communications
• Patient public and social media • More responsive service facilities
activism is also increasing through • Developing and applying innovative
networking technologies. technology is a key component of their future
• Increased need of customer service success and social license to operate. They
and price transparency. focus on applying the most leveraging
• They consider their people are their technologies where they can create the most
most important asset and the key to their value, anticipating change and responding
success. That’s why they respect one another, with creative solutions.
and consistently demonstrate honesty and
commitment in their words and actions.
• By demonstrating visible and active
leadership in communities where they
operate, ACME Pharma creates and
maintains inclusive, honest, and
mutually-beneficial relationships with those
who are impacted by their business or who
have the ability to impact their business.

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1.3 Business of the Company
Customer Focus: They always focus on their Customers. They listen to and connect with
their customers. They anticipate their needs and make it easy for them to do business with us.
They keep promises. They offer them value and quality services to enrich lives and enhance
business success. They treat customers with dignity and respect.

Team spirit: They believe in teamwork. They know that by working together as a team with
common goals they can achieve greatness. They recognize, respect and value diversity in a
team so that they can develop & maintain a culture of sharing, accepting and rewarding better
ideas. Teamwork is the secret of ACME's success.

Desire to win: They know how to make things happen and they know how to win in the
battlefield called the market place. They believe “Everything is possible.” That gives them an
edge over their rivals.

Pro-activity: They anticipate future changes in the industry and they take proactive moves to
seize the future opportunities and take measures to resolve possible problems. They adapt
quickly with the changes.

Integrity: ACME’s stakeholders’ confidence on them drives them to become more

responsible about commitments. They value all their stakeholders, customers, employees, the
community we live in and the society at large. They strive to deliver their best so that they
can be preeminent in the industry. They take responsibilities for all their actions.

Personal Excellence: They achieve leadership and superior performance through the pursuit
of personal excellence. They are committed to doing and being the best. They seek
continuous improvement and take pride in what they do. They do things to the highest
possible standards. They acknowledge potential of the individual and create opportunities for
all to grow and excel.

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2.3.1 Business Model
Acme laboratories is a Bangladesh based south-Asian conglomerate business. The company has
both strong B2B and B2C supply chains. Acme laboratories directly sells its food and beverages,
anti-infective products, medicines etc. to its local consumers via other operating retailers of the
market. It has strong network all across the country to support ceaseless distribution of the
products. The end consumers get the products in hand by several distribution channels. Acme has
revamped its business strategies to be a more consumer focused marker leader. It is the cost
leader of the market that aims to sell quality products at an affordable price.

The ACME Laboratories Ltd. is a leading company for manufacturing world-class and
top-quality pharmaceutical products in Bangladesh. They are currently producing more than 500
products in different dosage forms covering broader therapeutic categories which include
anti-infective, cardiovascular, antidiabetics, gastrointestinal, CNS, respiratory disease etc. among
many others. The success in local market prompted us to explore the international market and
over the years we gained a firm presence in South East Asia, Africa and Central America and
continuously discovering new horizons to improve the quality of life for patients, to further the
success of our customers and to help meet global challenges.

Acme has succeeded in building a worldwide value chain based on a direct-to-consumer business
strategy, which calls for a thorough comprehension of customers and the brands they are drawn
to. Therefore, Acme makes use of marketing initiatives that seek to forge a bond between
customers and those brands. Additionally, the corporation has a vast supply chain and works with
thousands of suppliers worldwide to properly distribute its trademarks.

Acme laboratories is a Bangladesh based south Asian conglomerate business. The company has
both strong B2B and B2C supply chains. Acme laboratories directly sells its food and beverages,
anti-infective products, medicines etc. to its local consumers via other operating retailers of the
market. It has strong network all across the country to support ceaseless distribution of the
products. The end consumers get the products in hand by several distribution channels. Acme has

22
revamped its business strategies to be a more consumer focused marker leader. It is the cost
leader of the market that aims to sell quality products at an affordable price.

In Bangladesh, The ACME Laboratories Ltd. is a top manufacturer of pharmaceutical items of

the highest caliber and standard. We presently produce more than 500 medications in various
dosage forms that address a wide range of therapeutic areas, including, but not limited to,
anti-infectives, cardiovascular, antidiabetics, gastrointestinal, CNS, respiratory disease, etc. The
success in the local market encouraged us to investigate the global market, and over time we
established a strong presence in South East Asia, Africa, and Central America. They are
continually seeking out new opportunities to enhance patient quality of life, contribute to the
success of our clients, and address global challenges.

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2.3.2 Value addition
ACME is currently manufacturing more than 800 branded generic products covering broader
therapeutic categories like Anti-Infective, Anti-Ulcerents, Cardiovascular, Antidiabetics,
CNS, NSAIDs, Anti-Viral, Hormone Steroid, Respiratory disease and so on presenting in
various dosage forms like Tablet, Capsule, Oral Liquid, Injectable, Dry Powder Inhaler,
Metered Dose Inhaler, Large volume parenteral, Cream, Ointment, Suppository, Ophthalmic
etc. Also offering adaptable treatment choices for acute and chronic care needs, since its
inception, we have expanded our business into many therapeutical fields. Additionally, in
order to maintain a competitive edge, we have developed a flexible strategy to keep up with
globalization and improve customer satisfaction by learning about client wants as well as by
providing industry-leading services. Our goal is to develop into a real value-focused,
market-oriented business with traces of real customer service and corporate responsibility.

Another value addition includes:

1.Writing pad for doctors

2. Caps for sales persons and distributors

3. Gift items for hospitals and clinics such as mugs.

2.3.3 Business Value Creation Process

Ensuring that patients receive the correct medicine, at the appropriate time and from a
convenient location, ACME Pharma is involved in a complex value chain involving three major
components:
1. Manufacturing of the medicine: In order in produce a medicine, a number of steps are
involved, from the initial research and development phase, to gaining regulatory approval which
allows a medicine to be sold in a market to the final commercialization phase. The specific steps
and requirements will differ between types of medicine, manufacturers and countries.
2. Distribution to the dispensing point: This step includes the transportation and handling of
the medicine from the manufacturer to the end user, whether this is a retail pharmacy (retailer),
hospital or dispensing doctor. The complexity of this journey will differ depending on
manufacturer location, the need for importation of the medicine, the nature of special handling
requirements, and the geographic location of the end user which will vary between large urban
centers and remote rural villages.

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3. Dispensing to the end user: Providing the correct medicine dosage and form, to the right
patient, in a convenient and timely manner is the final step in the value chain. This step can also
involve a number of additional activities, including checking for potential interactions, providing
advice, and processing reimbursement claims, each of which is intended to ensure the patient
receives the full benefit and value from the medicines they receive.

Figure: Value Chain of ACME Pharmaceutical

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2.3.4 SWOT Analysis

SWOT Analysis of ACME Pharma

Strengths Weaknesses
1.Big brand image and strong market 1.Cost of treating environmental hazards
position 2.Dependency on imported raw materials.
2.High level of marketing activities 3.Inadequate knowledge on international
3.Large pool of qualified technical business and trade related affairs
personnel 4.Absence of updated testing and clinical
4.Competitive price in local and foreign facilities.
market 5.Accused of Pollution
5.Wide range of product offering
6.Products are perceived as quality product
in the market

Opportunities Threats
1.Large potential for export market 1.Government regulations
expansion 2.Negative impact on export due to
2.Liberal Govt. policy for the foreign exchange rate variation
investors for joint venture projects 3.High labor costs
3.Domestic market is gradually increasing 4.Cheaper medicine from China and India.
with the hike in GDP 5.The fluctuation in raw imported material
4.Scope of new product development in price
herbal and animal health care segment

26
2.4 Management Structure
The hierarchical arrangement of work and people is what makes up an organization's corporate
structure. This organizational structure dictates where the decision-making authority resides, how
information moves within the business, and which departments are in charge of what tasks.
Acme’s everyday operations are guided by basic values that are shared by everyone in the
organization, including the Board of Directors. Our guiding principles support strategic
decision-making to lead Acme towards success through sound management and innovation, as
well as to maintain the close ties between team members.

2.5 Marketing Mix

2.5.1 Product- Premium / Standard

Product: ACME Laboratories Ltd has many product lines. Major product lines fall into the
following therapeutic classes:

▪ Alimentary Preparations

▪ Antiallergy Preparations

▪ Antidiabetic Preparations

▪ Antiparasite Preparations

▪ Bone Calcium Regulator

▪ CNS Preparations

▪ Drugs for Urinary Incontinence Eye and Ear Preparations Haematinics

▪ Lipid Modifying Preparations

▪ NSAIDs and Antigout Preparations

▪ Other Antibacterials

▪ Penicillins and Cephalosporins

▪ Quinolone Antibiotics

27
 ▪ Respiratory Tract Preparations

▪ Systemic Antifungal, Antiviral and Antiprotozoal Agents

▪ Topical Preparations

▪ Vitamins and Minerals

2.5.2 Pricing Strategy

Because of the industry’s inherent competitiveness, equivalent product qualities, strong buyer
negotiating power, and minimal brand switching costs, Acme Laboratories Ltd. Maintains
competitive prices. This market is positively elastic from an economics perspective, therefore a
small price rise could result in a dramatic decline in sales. We can infer that ACME Laboratories
Ltd.’s prices are reasonable given that their sales are rising in this positively elastic market.

2.5.3 Place / Distribution Strategy

Across the country, ACME Laboratories Ltd. has distribution networks. In Gazipur, the company
owns a plant. The corporation has 18 deposits from which it distributes its goods around the
nation.

Reaching the items in the nation is the responsibility of 158 vehicles and 675 distribution
workers. The committed team has a big responsibility to deliver the goods at the appropriate time
and place.

2.5.4 Promotion Methods

It is against the law for pharmaceutical corporations to advertise in the media. Physicians,
pharmacists, and retailers are used in promotion and advertising activities. Physicians are
approached directly, given free samples, invited to seminars, given the essential information, etc.
For pharmacists or retailers, it’s accomplished through rebates, commissions, etc.

The field teams of ACME Laboratories Ltd. are quite effective at routinely providing medical
practitioners with product information. They have been able to receive positive replies from

28
personal selling because of the company’s reputation and brand image. The promotional
campaign expenditure for ACME Laboratories Ltd. is substantial. They use strategies like these
to market their goods:

● Providing doctors with samples of the new items.

● Print educational materials for the business, such as leaflets, posters, booklets,
diaries, etc. and hand them out to outlets and medical experts.
● Promote the company by sponsoring medical professionals’ event.
● Host symposiums and seminars on various disorders.
● Participate in and sponsor social gatherings to enhance band awareness, etc.

2.6Financing
2.6.1Debt to Equity Mix
Debt-to-equity (D/E) ratio is used to evaluate a company’s financial leverage and is calculated by
dividing a company’s total liabilities by its shareholder’s equity. D/E ratio is an important metric
in corporate finance. It is a measure of the degree to which a company is financing its operations
with debt rather than its own resources. According to the Financial Report 2021, Acme
Laboratories LTD’s total liabilities was 20,366 million taka and their total equity was 19,931
million taka. So in 2021 Acme Laboratories LTD’s Debt-to-equity (D/E) ratio was:

Debt to Equity =20,366/19,931

=1.022

This indicates that in 2021, Acme Laboratories LTD’s debt was 22% higher than the
shareholder’s equity. That means in 2021, Acme Laboratories LTD is financing it’s operation
with 22% more debt than rather than it’s own resources.

2.6.2Dividend
The ACME Laboratories has declared higher dividends for its shareholders as the company made
higher profits in 2021-22 financial year. The drug maker's profits rose 34 per cent year-on-year
to Tk 211 crore in the last fiscal year when its earnings per share (EPS) hit Tk 9.98. Considering
the higher profits, board of directors of the company declared 30 per cent cash dividend for its

29
shareholders while it disbursed 25 per cent cash dividend in the previous year. The share price of
ACME rose 2.1 per cent to Tk 86.9 when the news broke on the Dhaka Stock Exchange (DSE).

30
2.7 Accounting
2.7.1 Accounting Methods Followed
All bookkeeping procedures, such as planning, treasury financial reports, tax and VAT works,
etc., are under the direction of their accounts division. They build and maintain internal control
arrangements in particular to safeguard ACME’s financial resources. They are also responsible
for managing department finances across all divisions. They adhere to International Standards
and GAAP to maintain bookkeeping records and property to prepare financial justifications.

2.7.2 Important Ratio Analysis

In 2021, the current ratio is higher than that of the other three years which indicates that ACME
Laboratories has much ability to pay its short-term obligations on time in 2018 but it decrease in
2019.And than it was a stagnant growth from 2019 to 2020.And again it increase a
lot in 2020 to 2021.

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In 2018, the quick ratio is higher than that of the other three years which indicates that ACME
laboratories has lower ability to pay its shortterm obligations even without relying on inventories
in 2019,2020 and 2021 than 2018.

32
A higher receivable turnover means a company's collection of accounts receivable is efficient
and that it has a high proportion of quality customers who pay their debts quickly. A high
receivables turnover ratio also indicate that a company operates on a cash basis. A low turnover
ratio typically implies that the company should reassess its credit policies to ensure the timely
collection of its receivables. In 2018, the receivable turnover is higher than that of the other
three year. There was a rapid decrease in receivable turnover from 2018 to 2019 and again a
rapid decrease from 2019 to 2020.Than a rapid growth from 2020 to 2021.

33
In 2018, the inventory turnover is higher than that of the other three years which
indicates that ACME Laboratories is more effective in using inventory to generate
sales compared to 2019,2020and 2021. There was a rapid decrease in inventory
turnover from 2018 to 2019 and again a rapid decrease from 2019 to 2020.Than a
rapid growth from 2020 to 2021.

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In 2018, the net profit margin is higher than that of the other three years which indicates better
income to shareholders compared to 2019,2020 and 2021. There was a stagnant decrease in the
profit margin from 2018 to 2019 and again a stagnant decrease from 2019 to 2020.And again a
decrease from 2020 to 2021.

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In 2021, the Asset turnover is higher than that of the other three years which indicates higher
return on company's investment compared to 2020 and 2018. There was a big decrease in return
on assets from 2020 to 2021 and again increase from 2019 to 2020.Than it was a steady growth
from 2020 to 2021.

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In 2018, the return on assets is higher than that of the other three years which indicates higher
return on company's investment compared to 2021 and 2018. There was a big decrease in return
on assets from 2018 to 2019 and again decrease from 2019 to 2020.Than it was a stagnant
growth from 2020 to 2021.

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In 2018, the return on common Stockholder Equity is higher than that of the other three years
which indicates the company gave higher return to their shareholders compared to 2019,2020
and 2021. There was a big decrease in return on shareholders equity from 2018 to 2019 and
again decrease from 2019 to 2020.Than it was a stagnant growth from 2020 to 2021.

2.8.1 Social and Environment Consciousness while Doing Business

To be true to Acme’s mission statement, they always harmonize with environmental issue. Acme
act in compliance with environmental rules and regulations.

Acme maintain a high standard of pollution free environment as per GMP Regulations, WHO
standards and laws of the land. In the year 2011, the company upgraded its MDI facility to HFA
based from CFC based in order to make the project more environment friendly.
Acme actively seek to reduce energy consumption in acme manufacturing facilities and business
offices.Acme work to reduce water consumption at their manufacturing units through careful
management of manufacturing processes and by recycling water wherever possible.

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Centralized Effluent Treatment Plant (ETP) and incinerators also are in place in order to process
industrial wastage and meet green environmental requirements.

2.8 Practice of Ethics

⮚ ACME’s approach is to ensure Health, Vigor and Happiness for all by manufacturing
ethical medicines of the highest quality at affordable prices and expanding in the local
and global market.
⮚ ACME’s view ourselves as partners with the doctors, healthcare professional, all other
customers, our employees and harmonize with environmental issue.

2.8.1 Social and Environment Consciousness while Doing Business

To be true to Acme’s mission statement, they always harmonize with environmental issue. Acme
act in compliance with environmental rules and regulations.

1. Poverty Education
The ACME Laboratories ltd. has been working with herbal and medicinal plants. The
mission behind this has some objectives:

To help the country’s rural poor and ultra-poor.

To improve the economic status to make them self-reliant by selling their organically
grown herbs and also meet their household requirements by means of herbal remedies for
their primary healthcare purposes.

2. PROMOTING EDUCATION
As a part of involvement to promote education, The ACME Laboratories Ltd. has
donated to the following educational institutions for building up their infrastructures:

Late Hamidur Rahman Sinha Bhabon at Loahjong Collage

Late Noor Jahan Sinha Bhaban at Malkhana School & Collage
Ichahpur K.B College Bhaban
Sirajdi Khan High School Bhaban

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 Nowapara High School Bhaban
3. PROMOTING HEALTHCARE AWARENESS

For the greater benefit of society and other public and non-profit organizations, ACME has
dedicated medical services department that regularly holds various awareness programs on
asthma, diabetes, heart diseases, AIDS etc. in association with relevant experts. It also provides
academic support to the medical community in the form of scientific seminars, symposium and
round-table discussions. Additionally, it provides free medicines and support in arranging health
camps run by the doctors’ community and other non-profit organizations.

2.9 Overall Conclusion of the Currnet Condition of the Company

Acme labrotaries is currently producing more than 800 products in different dosage forms
covering broader therapeutic categories which include anti-infective, cardiovascular,
antidiabetics, gastrointestinal, CNS, respiratory disease, hormones & steroids etc. among many
others.

The success in local market prompted Acme to explore the international market and over the
years acme gained a firm presence in South East Asia, Africa and Central America and
continuoacmely discovering new horizons to improve the quality of life for patients, to further
the success of Acme Lab’s customers and to help meet global challenges. Through the
outstanding knowledge, professionalism and commitment of more than 7000 employees, Acme
is consistently building upon our facilities, capabilities and also portfolio to meet the growing
health care needs.

3.Conclusion
Acme Pharmaceutical Ltd is a leading company at present time. By winning the heart of the
people of our countries now it starts their operation in India and some other countries. I had the
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opportunity to research and make a project for this company during my internship program.
These campaigns not only help to create awareness amongst the specified target group but also
helps to pass on a newly or modified positioning statement. For increasing sales Acme should
integrate all types of advertising tools. Acme will reach the top level very soon for their great
work.

In Bangladesh Pharmaceutical sector is one of the most developed hi tech sectors that is
contributing to the country’s economy. Pharmaceutical sector is one of the express mounting
sectors in Bangladesh. It is the most developed scientific sector. There are 250 registered
pharmaceutical companies operating in the Bangladesh pharmaceuticals industry. The
Pharmaceutical market is now extremely aggressive. ACME Laboratories Ltd. is the leading
healthcare company in Bangladesh.

ACME Laboratories Ltd. With its progressive business outlook, believes and practices corporate
work culture with a classic blend of efficiency and equity. ACME believes in company growth
by increasing the efficiency level of employees and for that by offering an excellent environment
and support for skill and knowledge upgradation. Acme values productivity as the spontaneous
contribution of Human Resources. Strategic Human Resource Development Programs are the
energy sources for Acme HR for running towards the zenith of success. Flow of clear and
specific information and justification of queries play the vital role to ensure the market reputation
of Acme as the most trusted and transparent company and it enriches the motivation level of HR
who are the real contributors and owners of his / her own jobs. ACME Laboratories Ltd.’s
present strategy is to keep the growing trend in sales. The company is also emphasizing
considerable attention to improve its market share. ACME Laboratories Ltd is committed to
quality products and maintains their standards of the industry products. They always try their
best to benchmark for high productivity and lowest cost per unit. They use state of the art
technology to their production unit and get higher production at the minimum time. This is done
to utilize their production facilities that will have cost advantage over the rivals. The marketing
and sales department always tries to find new ways to compete in the local market as well as the
international market. In the highly competitive marketplace, ACME Laboratories Ltd has been
very successful in creating a strong brand name and achieving significant market share. Their
marketing techniques, including PR activities and special offers to the doctors, are clearly a

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source of differentiation. Their staff and medical promotion officer seems to truly understand
what is most important to the value customers and doctors and how to deliver the proper
information of the products’ that can benefit the end consumers.

4. Reference
Academia

https://www.academia.edu/37947470/F_Final_Marketing_Sales_and_Distribute_process_on_Ac
me_Laboratories_Limited

ACME annual report

http://www.acmepharma.com/investor-relations/Company%20Reports/_Annual_Report_CR.
pdf

http://en.wikipedia.org/wiki/acmepharma

http://www.mba-tutorials.com/strategy/mission-vision/1702-acmepharma-vision- mission-

http://csimarket.com/stocks/growthrates.php?code=COP

http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=
dataset=cashFlow&period=a currency=native

http://www.acmepharma.com/sustainable-development/Documents/2013.11.7%201200%20S
D%20Final.pdf

http://www.researchandmarkets.com/reports/612871/acmepharma_analysis_ _

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5. Appendix: Statement of Financial Position of ACME Labrotaries

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