Research and Analysis project (RAP)

TOPIC
“Analyse and Evaluate the business and financial position
Of an organization which haas performed exceptionally well
Over a three year period “
Company & period
Square Pharmaceuticals Ltd

2018/19 to 2020/21

Submitted by:
ACCA ID: 4182117

TABLE OF CONTENT

CHAPTER 01: PAGE

1.1 Reasons for choosing the topic (5)

1.2 Reasons for choosing the organization
1.3 Organizational background
1.4 Aims and objectives of research
1.5 Overall research approach

Chapter 02:

2.1. sources of information

2.2. sources of collecting information.

2.3. methods of collecting information

2.4. limitations of collecting information .

2.5. ethical issues.

Chapter 03:

3.1. business techniques used, description and their limitation

3.2: SWOT Analysis

3.3. PESTEL Analysis

3.4. MICHAEL PORTER’S 5 Forces

3.5. accounting techniques used , their description and limitation .

3.6. calculation and working of ratio analysis (spreadsheet)

CHAPTER 04:

4.1. Evaluation of financial performance

4.2. Evaluation of business performance

4.3. conclusion and recommendation

Oxford brrokes university and ACCA has partnered with each other and is giving an
oppportunity to the students so that they could have an undergraduation degree ( BSC
Honours degree in applied accounting ) as well so that they are not left behind in the job
market due to this reason. in order to gain an undergraduate degree from a reputed
university I decided to take this opportunity . for this , a reseach and analysis project is
needed and my topic is topic number 5 , Analyse and Evaluate the business and financial
position of an organization which has performed exceptionally well Over a three year period
“. I choose a pharcetical company of our country named “Square Pharmaceuticals Ltd” and
comparing it with “Beximco Pharmaceuticals Ltd.

1.1 Reasons for choosing the topic (5):

This topic relates with my ACCA part 2 level qualifications mainly in paper financial
reporting, financial mangement and performance management . therefore ,the skills ,
understanding , application and critical thinking which is needed in evaluation is
comparatively better since I have leanded all the necessary knowledge . now, with the help
of this research project and paticularly by choosing this topic I can learn and demonstrate
the real life scenerio of te organization and learn about the changes , causes .

Moreover, with the help of financial statement financial position of a company can be
understood by calculating some ratio and analysing thoses ratios ti find out the causes of
changes .this also helps to understand the performace of the organization and to find out if
the organizational goals and objectives are met or not .

1.2 Reasons for choosing the organization :

Topic 5 has provided the flexibility of choosing any organization and any industry of
any country which have put me into a tough spot due to immense choice of
organization.therefore , atlast I decided to work on a company situated in our
country specifically to find out everything as much as I can . As pharmaceutical
industry is doing really well consistently as long as I can remember it sparks an
interest in me and I decided to go for it for my research report .

I have decided to work on “SQUARE PHARMACEUTICALS LTD” standalone financial

statements and to compare it with another similar industry “BEXIMCO
PHARMACEUATICALS LTD” . the reason for choosing the standalone financial
statemnent is to eliminate any biasness and to comapre only the core activities and
compare it to give a trueand fair view , since both the firms investments in
subsidiaries is not similar at all.
 1.3 Organizational background :

SQUARE PHARMACEUTICALS LTD:

Square pharmaceticals limited is the largest pharmaceutical company in bangladesh and it

has been continuiosly in the 1st position among all national and multinational companies
since 1985. It was established in 1958, converted into a public limited company in 1991 and
listed with stock exchange in 1995, the listing shows that the company is performing well
continuosly and there is growth. The turnover of square pharma was BDT 58.35 billion (US$
694.76 MILLION ) with about 17.21% market shaRe having a growth rate of about 10.24%
from july 2020-june 2021 with in a span of one year (square pharma, 2021). The company is
holding the strong leadership position in the pharmaceutical industry of bangladesh since
1985 and is now on its way to becomimg a highperformance global player . The company
claims to be the 1st company in ranking in the industry. (square pharma, 2021) .
It has extended its range of services towards the highway of global market . it pioneered
exports of medicines from bangladesh in 1987 and has been exporting antibiotics and other
products. Present export market covers 42 countries (square pharma, 2021).

BEXIMCO PHARMACEUATICALS LTD:

Beximco Pharmaceuticals Limited is a leading manufacturer and exporter of medicines in
Bangladesh. Incorporated in 1976, the Company started its operation by importing products
from Bayer, Germany and Upjohn, USA and selling them in the local market. In 1980,
Beximco Pharma began manufacturing of these products under licensing arrangement and
the company launched its own formulation brands in 1983. From that humble beginning,
Beximco Pharma has grown from strength to strength. Today, it has emerged as a global
generic pharma company in the region. The Company’s manufacturing facilities have been
accredited by the leading global regulatory authorities, and medicines manufactured by
the Company are now being exported to more than 50 countries including the highly
regulated markets of USA, Europe, Canada and Australia. Beximco has won the
National Export (Gold) trophy for 5 times. It remains the only Company in the country
to win the highly prestigious SCRIP Award as the “Best Pharma Company in an Emerging
Market” and also won CPhI Pharma Awards 2020 for “Innovation in Response to COVID-19.”
It also has the unique distinction as the only Bangladeshi Company listed on the AIM of
London Stock Exchange. Its product portfolio consists of more than 300 generic medicines
which are available in well over 500 different presentations and the broad portfolio
encompasses all key therapeutic categories including antibiotics, analgesics, anti-diabetic,
respiratory, cardiovascular, central nervous system, dermatology, gastrointestinal etc.
(bEXIMCO PHARMA )

1.4 Aims and objectives of research :

the aims and objectives which I have set are listed below:

[1.] To find out the reasons for the company’s growth, success , analyze and evaluate
the better performance of the company’s financial position .
[2.] To critically evaluate about the company’s position performace wih the help of
financial and non- financial , key ratios and also by using some tools to better
understand the business position such as SWOT, PESTEL and michal porter’s five
forces analysis for three years .
[3.] To find out the reasons of claiming 1st position in the industry .
[4.] To know more about the achievements made in these three years anc compare
it with the comparing organization ( beximco pharma) .
[5.] What corporate social responsibility is made in these three years , preferably
during the COVID 19 situation.
[6.] To identify what shortcomings if any is available with in the organization and
compare it with beximco pharma.
[7.] Whether the perfromace is better or worse than the rival company ( beximco
pharma)

1.5 Overall research approach :

For my research approach I have decided to conduct secondary s……….reseach , also

knows as desk research and have gathered information from different souces
available online for better analyzing and evaluation of performance of the business .
[1.] I have gathered information form differedent online sources such as internet ,
company website , company’s annual report, text book , business newspaper ,
journal articles , etc.
[2.] I have decided to use SWOT analysis, PESTEL and Michael Porter’s five forces for
analyzing and evaluating the business performance . these are my business
models tool .
1.[3.] For analysing financial performance ,I have decided to use ratio analysis which
are basically calculation for better understanding the performance specifically
the financial one and also using the non financial calculation . for example trend
 analysis to understand the growth perspective . different ratios such as
profitability, liquidity , investor ratios and gearing and risk ratios .
2.[4.] Draw a conclusion that is based upon overall performance and if possible find
out any problem if exists and provide some recommendation .

In order to carry out the research and analysis project , a detailed , timely ,
accurate information is needed that too which is on time and based on the
information detailed analysis and evaluation is done . therefore for this projecr
collecting information is really crucial and also how to collect and the media used
is also important provided it is update , reliable and accurate . there are many
ways information can be collected , below are some of the ways and the type of
source used for this projrct are outlined and explained briefly .

2.1. sources of information