B P L _FINAL_ by taminulislam

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									Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Introduction

   Beximco Pharma was incorporated in 1976 and commenced operations in 1980 with the
   manufacturing and marketing of products of Bayer AG, Germany and Upjohn Inc., USA under
   licensing arrangements.

   In 1983, the company started manufacturing its own formulations and it launched export
   operation in 1992. In 2005 Beximco Infusions Ltd, the company that produces intravenous fluids
   was amalgamated with the parent company. In the same year it completed the state-of-the-art
   oral solid dosage plant in compliance with the US FDA and UK MHRA standards, which has
   been approved by major global regulatory bodies. Today Beximco Pharma is the largest exporter
   of pharmaceuticals in the country and the only company to win National Export Trophy (Gold),
   the highest national accolade for export, for record three times. The company is the largest
   producer of Metered Dose Inhalers (MDIs) in the country, and the first to produce CFC free
   inhalers. BPL is also the first company to produce anti-retroviral drugs (ARVs) locally. As a
   public limited company, its shares are actively traded in Dhaka Stock Exchange and Chittagong
   Stock Exchange, and Beximco Pharma has the unique distinction of being the only company in
   the country listed on AIM of London Stock Exchange.

   Basic Information
   Authorized Capital in BDT* (mn)                     2000.0
   Paid-up Capital in BDT* (mn)                        1673.0
   Face Value                                          10.0
   Total no. of Securities                             167318487
   Market Lot                                          50
   Business Segment                                    Pharmaceuticals & Chemicals
   Number of Shareholders                              Around 68,000
   Stock Exchange Listings                             Dhaka and Chittagong Stock Exchanges of
                                                       Bangladesh and AIM of London Stock
                                                       Exchange
   Number of Employees                                 2,310
   Date shares were admitted to trading
   Dhaka Stock Exchange                                3 July, 1985
   Chittagong Stock Exchange                           11June, 1995
   AIM ( Alternative Investment Market) London         21 October,2005


   Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical formulations
   and Active Pharmaceutical Ingredients (APIs) in Bangladesh. The company is the largest
   exporter of pharmaceuticals in the country and its state-of-the-art manufacturing facilities are
   certified by global regulatory bodies of Australia, Gulf nations, Brazil, among others. The
   company is consistently building upon its portfolio and currently producing more than 400
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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   products in different dosage forms covering broader therapeutic categories which include
   antibiotics, antihypertensives, antidiabetics, antireretrovirals, anti asthma inhalers etc, among
   many others.

   With decades of contract manufacturing experience with global MNCs, skilled manpower and
   proven formulation capabilities, the company has been building a visible and growing presence
   across the continents offering high quality generics at the most affordable cost.

   Ensuring access to quality medicines is the powerful aspiration that motivates more than 3000
   employees of the organization, and each of them is guided by the same moral and social
   responsibilities the company values most. The company is the largest exporter of
   pharmaceuticals from Bangladesh and the only company to receive National Export Trophy
   (Gold), the highest national accolade for export, for record three times. BPL has a global
   footprint in more than 45 countries across four continents and currently in the process of entering
   the emerging markets of CIS with increasing focus on regulated markets like EU and USA.

   Besides the retail outlets, Beximco Pharma’s products are being supplied to renowned hospitals
   and institutions like Raffles Hospital and K K Women & Children Hospital in Singapore, MEDS
   and Kenyatta National Hospital (KNH) in Kenya, Jinnah Hospital, and Agha Khan Hospital in
   Pakistan. Located at Tongi, near the capital city Dhaka, BPL’s manufacturing site is spread over
   an area of 20 acres which houses a number of self contained production units including oral
   solids, metered dose inhalers, intravenous fluids, liquids, ointments, creams, suppositories,
   ophthalmic drops, injectables, nebulizer solutions etc. The bulk drug unit for producing
   paracetamol is also located within this site. Company’s penicillin API and formulation units are
   situated at Kaliakoir, a few kms from the main site.
   The plant and machinery throughout the site have been designed by and procured mostly from
   renowned European companies.

   Beximco Pharma has its own utility infrastructure to ensure adequate generation and distribution
   of purified water at all times. The installed capacity of power generation is 8 MW. There is also
   liquid nitrogen generation facility on site.

   Rising cost of healthcare and medicines has become a global concern, and in order to reduce cost
   across the value chain, pharmaceutical companies from developed markets continue to look for
   suitable partners in developing countries for shifting or outsourcing their production. With
   decades of experience in generic drug manufacturing, world class capabilities as well as
   significant cost advantages, Beximco Pharma can be an ideal partner for you to meet your
   contract manufacturing needs. Since its inception, Beximco Pharma has established itself as a
   reliable partner for a number of world's leading pharmaceutical companies. The company has
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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   maintained a track record of sound professionalism and its management has always adhered to
   international standards providing a culture and working environment similar to that of a
   multinational company. Currently the company has contract manufacturing agreement with
   GlaxoSmithKline (GSK) for producing Metered Dose Inhaler product. These partnerships have
   provided BPL much valuable expertise and know-how to manufacture world-class products.

   The company offers significant cost advantage as a manufacturer, as the average wage in
   Bangladesh is probably the lowest in the world, and at least two to three times lower than that in
   China or India. Prospective partners can benefit themselves with competitive advantages like
   availability of highly skilled manpower at a very low cost, low energy cost, Govt. policy support,
   investor friendly environment etc.




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Ratio Analysis

   Current Ratio

   Current ratio is one of the most commonly financial ratios. It measures for findings the firm
   ability to meets its short term obligations.

   The current ratio is calculated as follows:




              Figure 1 Current Ratio


                                                 Current Ratio
                 2                    1.8
                                                                           1.69
               1.5
                                                        1.4    1.45                             1.2
                 1                          1.33                                  1.31
                        1.1
               0.5

                 0
                      2008    2007     2006    2005
             Source: Annual report of Beximco Pharma 2004              2003       2002     2001

   In this graph we see that the current ratio of 2001 was 1.2 and their current asset 1784174322. In
   2002 the ratio increased in 1.31 because their current asset increasing in 198226375.In 2003 ratio
   increase in 1.69 their current asset was increasing in 2072764870 and their liabilities decreasing
   in 1229860988. But in 2004 their current asset was decreasing in 1.45 because their current asset
   was increasing in 2471513225 but current liabilities also increasing in 1659260602. In 2005 their
   current ratio more was decreasing in 1.4 because their current liabilities are also decreasing with
   their current asset. In 2006 the current ratio was 1.33 because their current liabilities also
   increasing in 2527420798. In 2007 the ratio increase in 1.8 because the current asset was
   increasing and liabilities was decreasing. In 2008 the ratio was 1.1because the current asset of
   the company is decreasing and current liabilities was increasing.

   Quick Ratio

   Quick ratio is measure of liquidity calculated by dividing the firm’s current assets minus
   inventory by its current liabilities.

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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   The quick ratio is calculated as follows:




             Figure 2 Quick Ratio


                                                  Quick Ratio
                1
                                    0.89              0.72
               0.8                                                          0.76
               0.6                                                0.65
                                                                                      0.58
                          0.52              0.63
               0.4                                                                              0.43

               0.2
                0
                     2008        2007      2006     2005       2004      2003      2002      2001

             Source: Annual report of Beximco Pharma

   In 2001 the company quick ratio was 0.43 their current asset 1784174322 and their inventories
   1144320036. And 2002 the ratio was increase in 0.58 because their current asset & Inventories
   also decreasing. In 2003 the ratio was also increasing in 0.76 because their current asset was
   increasing in 2072764870 and their liabilities decreasing in 1229860988. But in 2004 their quick
   ratio was decreasing in .65 because their current asset was increasing in 2471513225 but current
   liabilities also increasing in 1659260602. In 2005 their quick ratio was increasing in .72 because
   their current liabilities are also decreasing with their current asset but their inventory was
   increasing 1683722059. In 2006 the quick ratio was decreasing in 0.63 because their current
   liabilities also increasing in 2527420798. In 2007 the ratio increase in 0.89 because the current
   asset was increasing and liabilities was decreasing. In 2008 the ratio was .52 because the current
   asset of the company is decreasing and a current liability was increasing.

   Inventory Turnover

   Inventory turnover commonly measures the activity or liquidity of a firm’s inventory.

   The inventory turnover is calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



              Figure 3 Inventory Turnover


                                        Inventory turnover
               2.5
                2                                                            2
                                                                   1.72
               1.5                                                                  1.46
                          1.33      1.34                                                      1.28
                1                             1.12      1.05
               0.5
                0
                     2008        2007      2006      2005       2004      2003   2002      2001


              Source: Annual report of Beximco Pharma

   Their turnover in 2001 was 1.28 and their sold 1459108308 and their inventories 1144320036. In
   2002 their ratio was 11.46 because their cost of goods sold was and decreasing. In 2003 the
   inventory turnover increasing in 2.00 . Because the cost of goods decreasing in 1355748848 and
   inventory was increasing in 1143710. In 2004 their inventory was decreasing in 1.72 because
   their cost of goods sold was increasing in 1430590446 and inventories were decreasing in
   1394794907. In 2005 their inventories decreasing in 1.05 because the cost of goods sold was
   increasing and inventories was decreasing . In 2006 the inventory increasing in 1.12 because the
   cost of goods sold increasing in1971231333 and inventories increasing 1681754440288. In 2007
   the ratio increasing 1.34 and in 2008 the ratio was decreasing 1.33.

   Average collection period

   The average collection period or average age of accounts receivable is useful in evaluating
   credit and collection policies.

   The Average collection period is calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



               Figure 4 Average Collection Period



                 100
                                Average Collection Period
                                                                     84
                  80                                         91
                                                    86                           65
                  60     46
                                                                                         51
                  40                        42
                                 51
                  20
                   0
                        2008    2007    2006     2005     2004    2003    2002        2001


               Source: Annual report of Beximco Pharma

   In 2001 their average collection was 51 and the acc. Receivable was 333884395 and in 2002 the
   ratio increased in 65 because their acc. Receivable was increasing in 447307967. And In 2003
   the ratio was in 84 because the acc receivable was increasing in 4996775766.In 2004 the ratio
   was increase in 91 because the acc receivable increase in 600028183. In 2005 the ratio
   decreasing in 86 because the acc receivable was decreasing . In 2006 the ratio decreasing in 42
   because the acc receivable decreasing 430240095. In 2007 the ratio decreasing in 51and the acc
   receivable increases in 430240095. And 2008 the ratio again decrease in 46 because the acc
   receivable increase in 503916401 but the sales increase in 4010167059.

   Average Payment Period

   The average payment period or average age of acc payable is the same manner of average
   collection period.

   The average payment period is calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



              Figure 5 Average Payment Period


                                 Average Payment Period
               100
                                                                                            94
                                            88
                 80
                                    68                                      59
                 60        59
                                                                    61              52
                 40                                     50
                 20
                  0
                       2008     2007     2006    2005        2004        2003    2002    2001


              Source: Annual report of Beximco Pharma

   In 2001 their average payment was 94 and the acc. Payable was 250693220 and in 2002 the ratio
   decreased in 52 because their acc. Payable was decreasing in155928586. And In 2003 the ratio
   was in 59 because the acc Payable was decreasing in139591269.In 2004 the ratio was increase in
   61 because the acc Payable increase in170176125. In 2005 the ratio decreasing in 50 because the
   acc Payable was decreasing . In 2006 the ratio increasing in 88 because the acc Payable
   increasing365255938. In 2007 the ratio decreasing in 68 and the acc Payable decrease
   in271814118. And 2008 the ratio again decrease in 59 because the acc Payable in 271814118 but
   the purchase increase in 1626964288.

   Total Asset Turnover

   The total asset indicates the efficiency with which the firm uses its assets is generating sales.

   The total asset turnover is calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



         Figure 6 Total Asset Turnover


                                     Total Asset Turnover
            0.4
                                                                                             0.38
                             0.31               0.3                            0.37
            0.3
                                      0.31                             0.27
                    0.27                                  0.28
            0.2

            0.1

              0
                   2008      2007      2006     2005      2004    2003        2002    2001

       Source: Annual report of Beximco Pharma

       In this graph show that in 2001 there was 0.38 and total asset was63060267868. In 2002 the
       was decrease in .37 because its total asset increase in 6762691200. The next year ratio
       decrease for its total asset. But in 2004 the ratio increase in 0.28. In the next two year the
       ratio was increase because the total asset increase but sales decrease. In 2006 and 2007 the
       ratio was same. In 2008 the ratios again decrease for total asset.

   Debt Ratio

   The debt ratio measures the proportion of total assets financed by the firm’s creditor.

   The debt ratio is calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



        Figure 7 Debt Ratio


                                               Debt Ratio
          50%                                                     44%           43%
          40%
                                                         38%                                       35%
          30%                                33%                                         34%
                      29%        31%
          20%

          10%

           0%
                   2008      2007       2006          2005     2004      2003         2002     2001

        Source: Annual report of Beximco Pharma

        The debt ratio measures the proportion of total assets financed by the firm’s creditor. In 2001 the
        ratio was 35% and total liabilities 2194476724. In 2002 the ratio decreases in 34% because the total
        liabilities decrease. The next two year the ratio increasing because their Total liabilities and total
        asset both were increasing. Next year the ratio was decreased for total liabilities. In 2005 the ratios
        decrease in 33% because the liabilities decrease in 3962592062. In 2006 & 2007 and the ratio was
        decreasing because the total liabilities was decreasing and the total asset increasing.

   Time Interest Earned Ratio

   The times interest earned ratio measures the firm’s ability to make contractual interest payments
   sometimes called the interest coverage ratio.

   Time interest earn ration calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



        Figure 8 Time Interest Earn Ratio


                                  Time Interest Earned Ratio
          4.00%
                        3.34%
          3.00%
                                                  2.40%                                        2.51%
          2.00%                                                       1.84%
                                        2.28%                                   2.24%
                             1.80%                          2.02%
          1.00%

          0.00%
                    2008        2007    2006      2005       2004      2003      2002      2001

        Source: Annual report of Beximco Pharma

   This graph shows that in 2001 the ratio was 2.51% and the EBIT 430420451. In 2002 & 2003 the was
   decreasing in 2.24% & 1.84% because the EBIT was decreasing. In 2004 it increasing in 2.02% and EBIT
   also increase in 318588184. The next year the ratio was increasing . The next two years the ratio was
   decreasing with its EBIT. In 2008 the ratio was increasing in 3.34% because the EBIT was increasing in
   714121010.

   Gross Profit Margin

   The gross profit margin measures the percentage of each sales dollar remaining after firm has
   paid for its goods. The higher the gross profit margin, the better (that is the relative cost of
   merchandise sold).




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



       Figure 9 Gross Profit Margin


                                 Gross Profit Margin
       60%
               50%                        47%
       50%
                                                            38%                39%
       40%              45%      47%
       30%                                         40%
                                                                      36%
       20%
       10%
        0%
               2008     2007     2006     2005     2004     2003     2002     2001




       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company gross profit is 942132803 tk and 2002 gross
   profit is 888294919 tk . So graph line is fallen down in 2001 from 2002. Because of 2002 gross
   profit amount is lower than 2001 gross profit amount.

   Again, in this ratio we see that, in 2002 their company gross profit is 888294919 tk and 2003
   gross profit is 828080947 tk . So graph line is fallen down in 2002 from 2003. Because of 2003
   gross profit amount is lower than 2002 gross profit amount.

    Again, in this ratio we see that, in 2003 their company gross profit is 828080947 tk and 2004
   gross profit is 972110516 tk. So graph line is grown up in 2004 from 2003. Because of 2004
   gross profit amount is higher than 2003 gross profit amount.

   Again, in this ratio we see that, in 2004 their company gross profit is 972110516 tk and 2005
   gross profit is 1558500211 tk. So graph line is grown up in 2005 from 2004. Because of 2005
   gross profit amount is higher than 2004 gross profit amount.

   Again, in this ratio we see that, in 2005 their company gross profit is 1558500211 tk and 2006
   gross profit is1731085826tk. So graph line is grown up in 2006 from 2005. Because of 2006
   gross profit amount is higher than 2005 gross profit amount.



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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that, in 2006 their company gross profit is 1731085826 tk and 2007
   gross profit is1629514837tk. So graph line is fallen down in 2007 from 2006. Because of 2007
   gross profit amount is lower than 2006 gross profit amount.

   Again, in this ratio we see that, in 2007 their company gross profit is 1967509975tk and 2008
   gross profit is2007295878tk. So graph line is grown up in 2008 from 2007. Because of 2008
   gross profit amount is higher than 2007 gross profit amount

   Operating Profit Margin

   The operating profit margin measures the percentage of each sales dollar remaining after all cost
   and expenses other than interest, taxes, and preferred stock di8vidends are deducted; the “pure
   profits” earned on each sales dollar.

   The operating profit margin is calculated as follows




       Figure 10 Operating Profit Margin


                                   Operating Profit Margin
         30%
         25%          25%                                                   22%           26%

         20%
                                               22%        21%      20%
         15%                           20%
                            18%
         10%
           5%
           0%
                  2008      2007      2006     2005       2004    2003      2002      2001


       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company operating profit is 619649483 tk and 2002
   operating profit is 545109385 tk . So graph line is fallen down in 2001 from 2002. Because of
   2002 operating profit amount is lower than 2001 operating profit amount.
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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that, in 2002 their company operating profit is545109385 tk and 2003
   operating profit is 430082375 tk . So graph line is fallen down in 2002 from 2003. Because of
   2003 operating profit amount is lower than 2002 operating profit amount.

   Again, in this ratio we see that, in 2003 their company operating profit is 430082375 tk and 2004
   operating profit is 501273023 tk. So graph line is grown up in 2004 from 2003. Because of 2004
   operating profit amount is higher than 2003 operating profit amount.

   Again, in this ratio we see that, in 2004 their company operating profit is 501273023 tk and 2005
   operating profit is 724351718 tk. So graph line is grown up in 2005 from 2004. Because of 2005
   operating profit amount is higher than 2004 operating profit amount.

   Again, in this ratio we see that, in 2005 their company operating profit is 724351718 tk and 2006
   operating profit is746523494 tk. So graph line is grown up in 2006 from 2005. Because of 2006
   operating profit amount is higher than 2005 operating profit amount.

   Again, in this ratio we see that, in 2006 their company operating profit is 746523494 tk and 2007
   operating profit is654778147tk. So graph line is fallen down in 2007 from 2006. Because of
   2007 operating profit amount is lower than 2006 operating profit amount.

   Again, in this ratio we see that, in 2007 their company operating profit is 654778147 tk and 2008
   operating profit is 998794848 tk. So graph line is grown up in 2008 from 2007. Because of 2008
   operating profit amount is higher than 2007 operating profit amount.

   Net Profit Margin

   Measures the percentage of each sales dollar remaining after all cost and expenses, have been
   deducted.

   The net profit margin is calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



       Figure 11 Net Profit Margin


                                     Net Profit Margin
         20%
                                             15%                                      17%
         15%
                     14%                              12%
                                      13%                                  14%
         10%
                            10%                                 10%
          5%

          0%
                 2008      2007    2006      2005     2004     2003      2002     2001

       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company EAFCS is 430420451tk and 2002 EAFCS is
   362232463 tk . So graph line is fallen down in 2001 from 2002. Because of 2002 EAFCS
   amount is lower than 2001 EAFCS amount.

   Again, in this ratio we see that, in 2002 their company EAFCS is 36232463 to and 2003 EAFCS
   is 263618533 tk. So graph line is fallen down in 2002 from 2003. Because of 2003 EAFCS
   amount is lower than 2002 EAFCS amount.

    Again, in this ratio we see that, in 2003 their company EAFCS is 263618533 tk and 2004
   EAFCS is318588184 tk. So graph line is grown up in 2004 from 2003. Because of 2004 EAFCS
   amount is higher than 2003 EAFCS amount.

   Again, in this ratio we see that, in 2004 their company EAFCS is 318588184 tk and 2005
   EAFCS is 485366670 tk. So graph line is grown up in 2005 from 2004. Because of 2005 EAFCS
   amount is higher than 2004 EAFCS amount.

   Again, in this ratio we see that, in 2005 their company EAFCS is 485366670 tk and 2006
   EAFCS is 523243669 tk. So graph line is grown up in 2006 from 2005. Because of 2006 EAFCS
   amount is higher than 2005 EAFCS amount.



                                                15
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that, in 2006 their company EAFCS is 523243669 tk and 2007
   EAFCS is 399677667 tk. So graph line is fallen down in 2007 from 2006. Because of 2007
   EAFCS amount is lower than 2006 EAFCS amount.

   Again, in this ratio we see that, in 2007 their company EAFCS is 3996776677 tk and 2008
   EAFCS is 714121010 tk. So graph line is grown up in 2008 from 2007. Because of 2008 EAFCS
   amount is higher than 2007 EAFCS amount.

   Earnings per Share (EPS)

   EPS represents the dollar amount earned on behalf of each outstanding share of common stock
   not the amount of earning actually distributed to shareholders.

   The earnings per share are calculated as follows:




       Figure 12 EPS


                                                  EPS
         10
                                                                                        9.08
          8
                                               6.36                           7.72
          6                                                5.26
                4.33
                                        4.67
          4
                           3.8                                        3.7
          2

          0
                2008      2007      2006       2005        2004      2003   2002     2001


       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company EAFCS is 430420451tk and 2002 EAFCS is
   362232463 tk . So graph line is fallen down in 2001 from 2002. Because of 2002 EAFCS
   amount is lower than 2001 EAFCS amount.

                                                      16
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that, in 2002 their company EAFCS is 36232463 tk and 2003 EAFCS
   is 263618533 tk . So graph line is fallen down in 2002 from 2003. Because of 2003 EAFCS
   amount is lower than 2002 EAFCS amount.

    Again, in this ratio we see that, in 2003 their company EAFCS is 263618533 tk and 2004
   EAFCS is318588184 tk. So graph line is grown up in 2004 from 2003. Because of 2004 EAFCS
   amount is higher than 2003 EAFCS amount.

   Again, in this ratio we see that, in 2004 their company EAFCS is 318588184 tk and 2005
   EAFCS is 485366670 tk. So graph line is grown up in 2005 from 2004. Because of 2005
   EAFCS amount is higher than 2004 EAFCS amount.

   Again, in this ratio we see that, in 2005 their company EAFCS is 485366670 tk and 2006
   EAFCS is 523243669 tk. So graph line is grown up in 2006 from 2005. Because of 2006 EAFCS
   amount is higher than 2005 EAFCS amount.

   Again, in this ratio we see that, in 2006 their company EAFCS is 523243669 tk and 2007
   EAFCS is 399677667 tk. So graph line is fallen down in 2007 from 2006. Because of 2007
   EAFCS amount is lower than 2006 EAFCS amount.

   Again, in this ratio we see that, in 2007 their company EAFCS is 3996776677 tk and 2008
   EAFCS is 714121010 tk. So graph line is grown up in 2008 from 2007. Because of 2008 EAFCS
   amount is higher than 2007 EAFCS amount.

   Return on Total Assets (ROA)

   Measures the overall effectiveness of management in generating profits with its available assets;
   also called the return on investment.

   The return on total assets is calculated as follows:




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Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



       Figure 13 Return On Total Asset



                            Return On Total Asset (ROA)
         7%
         6%                                                                           6%
         5%                        4%        4%                             5%
         4%
         3%     4%                                                 3%
         2%                3%                           3%
         1%
         0%
                2008     2007      2006     2005        2004   2003     2002      2001


       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company EAFCS is 430420451tk and 2002 EAFCS is
   362232463 tk . So graph line is fallen down in 2001 from 2002. Because of 2002 EAFCS
   amount is lower than 2001 EAFCS amount.

   Again, in this ratio we see that, in 2002 their company EAFCS is 36232463 tk and 2003 EAFCS
   is 263618533 tk . So graph line is fallen down in 2002 from 2003. Because of 2003 EAFCS
   amount is lower than 2002 EAFCS amount.

   Again, in this ratio we see that, in 2003 their company EAFCS is 263618533 tk and 2004
   EAFCS is318588184 tk. So graph line is grown up in 2004 from 2003. Because of 2004 EAFCS
   amount is higher than 2003 EAFCS amount.

   Again, in this ratio we see that, in 2004 their company EAFCS is 318588184 tk and 2005
   EAFCS is 485366670 tk. So graph line is grown up in 2005 from 2004. Because of 2005
   EAFCS amount is higher than 2004 EAFCS amount.

   Again, in this ratio we see that, in 2005 their company EAFCS is 485366670 tk and 2006
   EAFCS is 523243669 tk. So graph line is grown up in 2006 from 2005. Because of 2006 EAFCS
   amount is higher than 2005 EAFCS amount.


                                                   18
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that, in 2006 their company EAFCS is 523243669 tk and 2007
   EAFCS is 399677667 tk. So graph line is fallen down in 2007 from 2006. Because of 2007
   EAFCS amount is lower than 2006 EAFCS amount.

   Again, in this ratio we see that, in 2007 their company EAFCS is 3996776677 tk and 2008
   EAFCS is 714121010 tk. So graph line is grown up in 2008 from 2007. Because of 2008 EAFCS
   amount is higher than 2007 EAFCS amount.

   Return on Common Equity(ROE)

   Measures the return earned on the common stockholders’ investment in the firm.

   The return on common equity is calculated as follows:




       Figure 14 Return On Common Equity


                          Return on common equity (ROE)
         12%

         10%                                                                           10%
          8%                                                                 8%
                                                 7%
          6%                            6%                 6%
                     5%                                             5%
          4%                  4%
          2%

          0%
                 2008     2007      2006     2005      2004     2003     2002       2001


       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company EAFCS is 430420451tk and 2002 EAFCS is
   362232463 tk . So graph line is fallen down in 2001 from 2002. Because of 2002 EAFCS
   amount is lower than 2001 EAFCS amount.


                                                 19
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that, in 2002 their company EAFCS is 36232463 tk and 2003 EAFCS
   is 263618533 tk . So graph line is fallen down in 2002 from 2003. Because of 2003 EAFCS
   amount is lower than 2002 EAFCS amount.

    Again, in this ratio we see that, in 2003 their company EAFCS is 263618533 tk and 2004
   EAFCS is318588184 tk. So graph line is grown up in 2004 from 2003. Because of 2004 EAFCS
   amount is higher than 2003 EAFCS amount.

   Again, in this ratio we see that, in 2004 their company EAFCS is 318588184 tk and 2005
   EAFCS is 485366670 tk. So graph line is grown up in 2005 from 2004. Because of 2005
   EAFCS amount is higher than 2004 EAFCS amount.

   Again, in this ratio we see that, in 2005 their company EAFCS is 485366670 tk and 2006
   EAFCS is 523243669 tk. So graph line is grown up in 2006 from 2005. Because of 2006 EAFCS
   amount is higher than 2005 EAFCS amount.

   Again, in this ratio we see that, in 2006 their company EAFCS is 523243669 tk and 2007
   EAFCS is 399677667 tk. So graph line is fallen down in 2007 from 2006. Because of 2007
   EAFCS amount is lower than 2006 EAFCS amount.

   Again, in this ratio we see that, in 2007 their company EAFCS is 3996776677 tk and 2008
   EAFCS is 714121010 tk. So graph line is grown up in 2008 from 2007. Because of 2008 EAFCS
   amount is higher than 2007 EAFCS amount.

   Price/Earnings (P/E) Ratio

   Measures the amount that investors are willing to pay for each dollar of a firm’s earning; the
   higher the P/E ratio, the greater the investor confidence.

   The P/E ratio is calculated as follows:




                                                    20
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



       Figure 15 Price/Earning Ratio


                                       Price/Earning Ratio
         50

         40         38.73
         30

         20                    19.12                           17.51
                                          11.5                            10.74
         10                                                                       5.42
                                                    9.09
                                                                                            5.45
          0
                2008        2007       2006      2005        2004      2003       2002   2001

       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company outstanding share is 44250000 tk and 2004
   outstanding share is 44250000 tk. So graph line is grown up in 2004 from 2003. Because of 2004
   outstanding share amount is higher than 2003 outstanding share amount.

   Again, in this ratio we see that in 2002 their company outstanding share is 44250000 tk and 2003
   outstanding share is 55976250 tk. So graph line is grown up in 2002 from 2003. Because of 2003
   outstanding share amount is higher than 2002 outstanding share amount.

   Again, in this ratio we see that, in 2003 their company outstanding share is 55976250 tk and
   2004 outstanding share is 55976250 tk. So graph line is grown up in 2004 from 2003. Because
   of 2004 outstanding share amount is higher than 2003 outstanding share amount

   Again, in this ratio we see that, in 2004 their company outstanding share is 55976250 tk and
   2005 outstanding share is 76878446 tk. So graph line is outstanding share in 2005 from 2004.
   Because of 2005 outstanding share amount is higher than 2004 outstanding share amount

   Again, in this ratio we see that, in 2005 their company outstanding share is 76878446 tk and
   2006 outstanding share is 100737415 tk. So graph line is fallen down in 2007 from 2006.
   Because of 2006 outstanding share amount is lower than 2005 outstanding share amount



                                                        21
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that, in 2006 their company outstanding share is 100737415 tk and
   2007 outstanding share is1145070743 tk. So graph line is grown up in 2007 from 2006. Because
   of 2007 outstanding share amount is higher than 2006 outstanding share amount

   Again, in this ratio we see that, in 2007 their company outstanding share is 114507043 tk and
   2008 outstanding share is 7125957757 tk. So graph line is grown up in 2008 from 2007. Because
   of 2008 outstanding share amount is higher than 2007 outstanding share amount

   Book Value Per Share

   Provides an assessment of how investors view the firm’s performance. Firms expected to their
   risk typically sell at higher M/B multiples.

   Book Value Per Share ratio is calculated as follows:




       Figure 16 Book Value Per Share


                                    Book Value Per Share
          150

                                                                           100
                                                  89
          100                                                                            94

                                       79                   86      82
           50       83      72


            0
                  2008      2007      2006        2005      2004   2003    2002      2001

       Source: Annual report of Beximco Pharma

   In this ratio we see that, in 2001 their company total share equity is 4165791144 tk and 2004
   total share equity is 4441096192 tk. So graph line is grown up in 2004 from 2003. Because of
   2004 total share equity amount is higher than 2003 total share equity amount.




                                                       22
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Again, in this ratio we see that in 2002 their company total share equity is 4441096192 tk and
   2003 total share equity is 4596420977 tk. So graph line is fallen down in 2002 from 2003.
   Because of 2003 total share equity amount is lower than 2002 total share equity amount.

   Again, in this ratio we see that, in 2003 their company total share equity is 4596420977 tk and
   2004 total share equity is 54834747661 tk. So graph line is grown up in 2004 from 2003.
   Because of 2004 total share equity amount is higher than 2003 total share equity amount

   Again, in this ratio we see that, in 2004 their company total share equity is 4834747661 tk and
   2005 total share equity is 6820925052 tk. So graph line is in 2005 from 2004. Because of 2005
   total share equity amount is higher than 2004 total share equity amount

   Again, in this ratio we see that, in 2005 their company total share equity is 6820925052 tk and
   2006 total share equity is 7949920425 tk. So graph line is fallen down in 2007 from 2006.
   Because of 2006 total share equity amount is lower than 2005 total share equity amount

   Again, in this ratio we see that, in 2006 their company total share equity is 7949920425 tk and
   2007 total share equity is8250939647 tk. So graph line is grown up in 2007 from 2006. Because
   of 2007 total share equity amount is lower than 2006 total share equity amount

   Again, in this ratio we see that, in 2007 their company total share equity is 8250939647 tk and
   2008 total share equity is 10450202145 tk. So graph line is grown up in 2008 from 2007.
   Because of 2008 total share equity amount is higher than 2007 total share equity amount.

   Market/Book (M/B Ratio)

   The Market book ratio provides an assessment of how inventors view the firm’s performance.
   Firms expected to earn high returns relative to their risk typically sell at higher M/B ratio.

   Book Value Per Share ratio is calculated as follows:




                                                  23
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



       Figure 17 Market/Book (M/B Ratio)


                                  Market/Book (M/B Ratio)
         2.5

           2        2.02

         1.5

           1                 0.82                              1.07
                                                   0.65                      0.42
         0.5                        0.68                                               0.53
                                                                      0.48
           0
                2008       2007     2006        2005        2004      2003   2002   2001


       Source: Annual report of Beximco Pharma

   In 2001 the ratio was 0.53 and market price was 49.50. In 2002 the ratio decreases in 0.42
   because the market price decreases in 41.83. In 2003 and 2004 the ratio was increase in 0.48 &
   1.07 because the market price was increase. In 2005 the ratio again decreases in 0.65 for the
   market price. In 2006 and 2007 the market price was increase in 53.70 and 58.9 so the ratio was
   increase in 0.68 & 0.82. And in 2008 the ratio was so high because the market price was high.
   The ratio was 2.02 and market price 167.7.




                                                       24
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Compeering to Others Company

   Figure 18 Gross Profit


      60.00%
                   50%                   47%           47%
      50.00%                    45%                                Bata Shoe
      40.00%                                                       Monno Ceramics
      30.00%                                                       Beximco Pharma
      20.00%                                                       Square Pharma
      10.00%
                                                                   Apex
       0.00%
                                                                   ACI
                    2008        2007      2006         2005




   In the gross profit Beximco Pharma has 50% on 2008, 45% on 2007, 47% on 2006 and 47% on 2005

   Figure 19 Operation Profit


      30.00%       25%                                               Bata Shoe
      25.00%                                            22%
                                          20%
      20.00%                    18%                                  Monno Ceramics
      15.00%                                                         Beximco Pharma
      10.00%
                                                                     Square Pharma
       5.00%
       0.00%                                                         Apex
                    2008         2007      2006          2005        ACI




   2008 Beximco Pharams has 25%, 2007 was 18%, 2006 was 20% and 2005 was 22%.




                                                  25
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)




   Figure 20 Net Profit Margin


      25.00%
                                                                    Bata Shoe
      20.00%
                      14%                                  15%      Monno Ceramics
      15.00%                                 13%
                                  10%                               Beximco Pharma
      10.00%
                                                                    Square Pharma
       5.00%
                                                                    Apex
       0.00%
                                                                    ACI
                      2008         2007       2006          2005




   Net pofit was 14% on 2008, 10% on 2007, 13% was 2006, 2005 was 15%




   Figure 21 EPS


      300
      250                                                           Bata Shoe
      200                                                           Monno Ceramics
      150                                                           Beximco Pharma
      100                                                           Square Pharma
       50          4.33          3.8        4.67           6.36     Apex
        0
                                                                    ACI
                   2008          2007       2006           2005




   EPS was 4.23 on 2008, 3.8 at 2007, 4.67 at 2006, 6.36 at 2005.

   Figure 22 ROA




                                                      26
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



     20.00%                                                          Bata Shoe
     15.00%                                                          Monno Ceramics
     10.00%                                                          Beximco Pharma
                   4%         3%           4%           4%
      5.00%                                                          Square Pharma
      0.00%                                                          Apex
                   2008       2007         2006         2005         ACI




   ROA was 2008 at 4%, 2008 3%, 2006 was 4%, 2005 was 4%



   Figure 23 ROE

     50.00%
     40.00%                                                          Bata Shoe
     30.00%                                                          Monno Ceramics
     20.00%                                                          Beximco Pharma
                   5%         4%           6%           7%
     10.00%
                                                                     Square Pharma
      0.00%
                   2008       2007         2006         2005         Apex




   In 2008 the ROE was 5%, 2007 was 4%, 2006 was 6%, 2005 was 7%



   Conclusion

   After analyzing the financial statements of Beximco Pharma we have got a scenario of Beximco
   Pharma. Also we have able to know about the condition of the company and its others services
   and products. Our main aim was to study the ratios of Beximco Pharma. From the study we can
   now know about the Liabilities, Assets, and Market price etc about the company.

   Commitment to the society is an integral part of the way they are doing business. They do not
   judge success in financial terms only; they value even more the deep relationship with the
   society we live in. Each year, a substantial amount of our earning is ploughed back into social
   causes, so that our society gets benefited while they continue to grow.




                                                   27
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   They donate and make available a large quantity of medicines to the victims of natural disasters,
   both national and international. Medicines for the victims of earthquake in Pakistan, tsunami in
   Sri Lanka, and cyclone SIDR in Bangladesh are a few worth mentioning.

   Responding to the needs of thousands of AIDS patients in the country, Beximco Pharma has
   been supplying ARV drugs through Dutch Bangla Bank, a leading local bank, for treating the
   AIDS patients in Bangladesh. These ARV drugs are distributed through Ashar Alo, Mukto
   Akash, and Confidential Approach to AIDS Prevention (CAAP) - NGOs working for the
   HIV/AIDS patients.

   Since its launch in March 2006, Oseflu, BPL’s brand of oseltamivir capsule, has been donated to
   the govt. of Bangladesh as well as different reputed organizations including ICDDR,B in
   response to the pandemic Avian as well as recent Swine Flu. We also supplied Oseflu® to the
   government of Myanmar as a part of our CSR initiatives.

   Form the above discussion we found that Beximco Pharma did lots of social works beside their
   business, and for these works many people of much country benefited for this.




                                                  28
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Appendix

                           2001            2002            2003            2004
   Sales                   2,401,241,111   2,522,942,523   2,183,829,795   2,402,700,962
   Cost of goods sold      1,459,108,308   1,620,493,149   1,355,748,848   1,430,590,446
   Gross Profit            942,132,803     902,449,374     828,080,947     972,110,516
   Operating profit        619,649,483     545,109,385     430,082,375     501,273,023
   EBIT (Net profit        430,420,451     362,232,463     263,618,533     318,588,184
   before tax)
   EAFCS                   401,779,808     341,680,048     207,140,366     294,302,934
   EPS                     9.08            7.72            3.70            5.26
   Outstanding share       44,250,000      44,250,000      55,976,250      55,976,250
   Purchase                974,327,622     1,099,665,979   860,369,105     1,019,459,244
   Interest                171,404,878     161,521,864     143,159,432     157,393,995
   Current asset           1,784,174,322   1,982,226,375   2,072,764,870   2,471,513,225
   Inventories             1,144,320,036   1,113,539,289   1,143,710,812   1,394,794,907
   Account receivable      333,884,395     447,307,967     499,677,576     600,028,183
   Total shareholder       4,165,791,144   4,441,096,192   4,596,420,977   4,834,747,661
   equity
   Current liabilities     1,490,321,573   1,509,003,009   1,229,860,988   1,659,260,602
   Total asset             6,360,267,868   6,762,691,200   8,012,857,866   8,560,380,432
   Total liabilities       2,194,476,724   2,321,595,008   3,416,436,889   3,725,632,771
   Account payable         250,693,220     155,928,586     139,591,269     170,176,125
   Market Price            49.50           41.83           39.72           92.10




                                              29
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



                           2005             2006             2007             2008
   Sales                   3,327,022,574    3,702,317,159    3,597,024,812    4,010,167,059
   Cost of goods sold      1,768,522,363    1,971,231,333    1,967,509,975    2,002,871,181
   Gross Profit            1,558,500,211    1,731,085,826    1,629,514,837    2,007,295,878
   Operating profit        724,351,718      746,523,494      654,778,147      998,794,848
   EBIT (Net profit        485,366,670      523,243,669      399,677,667      714,121,010
   before tax)
   EAFCS                   489,261,764      470,658,563      353,067,878      545,341,273
   EPS                     6.36             4.67             3.08             4.33
   Outstanding share       76,878,446       100,737,415      114,507,043      125,957,747
   Purchase                1,592,257,330    1,521,651,955    1,459,653,540    1,626,964,288
   Interest                202,541,434      229,719,450      222,581,780      214,066,707
   Current asset           3,495,849,163    3,357,393,266    2,923,775,458    2,861,891,654
   Inventories             1,683,722,059    1,754,440,288    1,470,152,242    1,505,288,093
   Account receivable      779,798,943      430,240,095      499,680,792      503,916,401
   Total shareholder       6,820,925,052    7,949,920,425    8,250,939,647    10,450,202,145
   equity
   Current liabilities     2,501,824,568    2,527,420,798    1,627,972,936    2,602,032,267
   Total asset             10,945,479,980   11,912,512,487   11,953,418,940   14,819,665,441
   Total liabilities       4,124,554,928    3,962,592,062    3,702,479,293    4,369,463,296
   Account payable         216,660,743      365,255,938      271,814,118      263,176,822
   Market Price            57.80            53.70            58.9             167.7


   Ratio/Year             2001     2002     2003    2004     2005    2006     2007     2008

   Current ratio          1.20     1.31     1.69    1.45     1.40    1.33     1.80     1.10

   Quick ratio            0.43     0.58     0.76    0.65     0.72    0.63     0.89     0.52

   Inventory turn over    1.28     1.46     2.00    1.72     1.05    1.12     1.34     1.33

   Average collection     51       65       84      91       86      42       51       46
   period                 days     days     days    days     days    days     days     days

   Average payment        94       52       59      61       50      88       68       59
   period                 days     days     days    days     days    days     days     days

   Total asset turnover   0.38     0.37     0.27    0.28     0.30    0.31     0.31     0.27

   Debt ratio             35%      34%      43%     44%      38%     33%      31%      29%

   Time interest earned   2.51%    2.24%    1.84%   2.02%    2.40%   2.28%    1.80%    3.34%

                                              30
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   ratio

   Gross profit margin    39%      36%     38%       40%     47%    47%     45%     50%

   Operating profit       26%      22%     20%       21%     22%    20%     18%     25%
   margin

   Net profit margin      17%      14%     10%       12%     15%    13%     10%     14%

   EPS                    9.08     7.72    3.70      5.26    6.36   4.67    3.80    4.33

   ROA (Return on total   6%       5%      3%        3%      4%     4%      3%      4%
   asset)

   ROE (Return on         10%      8%      5%        6%      7%     6%      4%      5%
   common stock equity)

   P/E Ratio              5.45     5.42    10.74     17.51   9.09   11.50   19.12   38.73

   Book Value             94       100     82        86      89     79      72      83

   M/B Ratio              0.53     0.42    0.48      1.07    0.65   0.68    0.82    2.02




                                                31
Analyzing the Annual Report of Beximco Pharma Ltd. (2001- 2008)



   Reference

      1. Annual report of Beximco Pharma (2001-2008)

      2. www.beximco-pharma.com

      3. www.dse.com.bd




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