Research Paper4

FINANCIAL PERFORMANCE ANALYSIS OF FOUR
SELECTED PHARMACEUTICALS COMPANY IN

BANGLADESH
CHAPTER 1: INTRODUCTION
Origin of the report:

From education the theoretical knowledge is obtained from courses of study, which is only the
half way of the subject matter. Practical knowledge has no alternative. The perfect coordination
between theory and practice is of paramount importance in the context of the modern business
world in order to resolve the problem between these two areas.
This paper entitled Financial Performance Analysis of Four Selected Pharmaceuticals
company in Bangladesh is originated from the fulfillment of the MBA program.
Objective of the report:

The prime objective of the report is to gather practical exposure to the operations and the
financial statement analysis of different Pharmaceuticals Company. The specific objectives of
the study are as follows:
1. The is meant to relate the financial statement analysis theories learnt in class to the
context of a real world scenario to understand their practical implications,
2. To analyze the financial statements of Square Pharmaceuticals Ltd, Renata
Pharmaceuticals Ltd, Beximco Pharmaceuticals Ltd and Ibn Sina Pharmaceuticals Ltd.
To get an insight of the financial performance of the company from the different
perspectives. The analysis is done on the financial statements during the time period of
2006 to 2010.
Scope of the report:

This report has been focused on the financial performance of Square Pharmaceuticals Ltd,
Renata pharma Ltd, Beximco Pharma Ltd and Ibn Sina for the years ending 2006 through 2010
by means of analysis of Income Statements, Balance Sheets and Cash flow Statements. The
Ratio, Benchmark, horizontal, Cash Flow Statement and growth analysis of the companys
Income Statement and Balance Sheet for the last five financial years has been portrayed in this
report. And finally, it also includes an analysis of the following ratios: Leverage Ratios,
Liquidity ratios, Profitability ratios, and Market Ratios.
Limitation of the report:

There were financial terms that vary from the book and that are individual to each company.
Best effort was made to reconcile and interpret them. But some ambiguity may still be left.
Methodology of the study:

A proper method is always necessary for any research work. It helps to organize the
experiences observation, analysis of data information their logical expression in a systematic
process to achieve the ultimate goals & the objectives of the research the methods adopted for
the current research work is presented in a sequential manner. The methodology of the study is
as follows:
Research design:
Descriptive research design has been used. My main target is to describe about something.
Collection of data:
The information required to prepare the report has been collected from secondary sources.
Secondary data has been collected from the related sources of the bank. Those are as follows:
Secondary Sources of data collection:

Book and web materials.
Publications, Magazines and Journal.
Annual reports, Different issues from Balance sheet and profit and loss a/c.
Dhaka Stock Exchange
Data processing:
Data has been processed through gathering, editing, sorting, coding of secondary data.
Collected data has been systematically processed and analyzed by using required tools and it is
be presented in terms of tables, charts, figures, and graphs with written scripts.
Final Report Preparation:

The final report has been prepared on the basis of the above analysis and the interpretation of
data.
CHAPTER 2: AN OVERVIEW OF THE PHARMACEUTICALS

COMPANY IN BANGLADESH
OVERVIEW OF SQUARE PHARMACEUTICALS

LIMITED
SQUARE today symbolizes a name a state of mind. But its journey to the growth and
prosperity has been no bed of roses. From the inception in 1958, it has flourished into
one of the top line conglomerates in Bangladesh today. Square Pharmaceuticals Ltd.,
the flagship company, is holding the strong leadership position in the pharmaceutical
industry of Bangladesh since 1985 and is now on its way to becoming a high
performance global player.
Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it

has been continuously been the market leader since 1985. It was established in 1958 as a
partnership and in 1964, Square was converted into a Private Limited Company. In 1991, it was
listed in the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) as a Public
Limited Company. In 1994, Square commenced Initial Public Offering (IPO) of Square
Pharmaceutical Limited shares with authorized capital of Tk 1,000 million.
The company has extended its range of services towards the highway of global market. SPL has
pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and
other pharmaceutical products since then. This extension in business and services has manifested
the credibility of Square Pharmaceuticals Limited.
In 1997, SPL had won the National Export Trophy for exporting pharmaceuticals overseas. Later in
1998, SPL had been awarded with the ISO-9001 Certificate for its high product standards. In
2007, SPL has been awarded with UK-MHRA Certificate.
Currently, SPL manufactures and markets its own branded generics' for many diseases like AIDS,
Cancer, Asthma, Hypertension, Diabetes, both nationally and globally. Many of Squares products
are brand leaders in their respective fields. The company produces pharmaceutical specialties of
uncompromising quality. Its comprehensive range of about 120 formulations, cover all major
therapeutic groups. Square's products come in tablet, capsule, powder, liquid, cream and
suppository and inhaler forms.
In the recent past, the sales of SPL was more than Tk 5 Billion with about 15% market share having
a growth rate of about 16%. It currently has 13,009 shareholders and 3001 staff.
OVERVIEW OF BEXIMCO PHARMACEUTICALS LIMITED:

Beximco Pharma is a leading edge Pharmaceutical company based in Dhaka, Bangladesh and is
acclaimed for its outstanding product quality, world class manufacturing facilities, product
development capabilities and outstanding professional services. Beximco pharma is also the
largest exporter of pharmaceutical products from Bangladesh and received National Export
Trophy ( Gold), the highest National accolade for Export, for record three times. Beximco
pharma is a public limited company. It is established 1976. Its main target manufacturing and
marketing of pharmaceuticals finished formulation product, large volume parenterals and active
pharmaceutical ingredients. Its overseas offices and Associates UK, USA, Pakistan, Myanmar,
Singapore, Kenya, Yemen, Nepal, Vietnam, Combodia and Srilanka. Beximco authorized
capital 2,000 million and Paid up Capital 1,040.97 million. Its number of shareholders around
49,000. Its number of employees is 2,500 people and is widely acclaimed for its skilled and
talented workforce. Today Beximco pharma is building its presence across five continents and
is the only Bangladeshi company to market pharmaceutical products in the USA.
OVERVIEW OF RENATA PHARMACEUTICALS LIMITED:

Renate Pharmaceuticals limited main focus customer satisfaction. Renate pharma conform to
the highest ethical standards. It make active efforts to improve the welfare of our community.
Renate cannot grow without leadership in all spheres of our activities. Therefore creating
leaders is a key priority. Renate provide maximum value to our customers and communities
where we live and work. The endurance of a companys reputation depends upon the quality of
work it does rather than the quantity. Hence, the appreciation of quality must be instinctive, and
our commitment to quality must be total.
OVERVIEW OF IBN SINA PHARMACEUTICALS LIMITED:

The IBN SINA Pharmaceuticals Ltd. was founded on 1983. The industry was established by
the trustee board as a limited company. Then it is converted into public limited company in
1989.Now IBN SINA Trust own 50% share of the industry and public shares the rest 50%.since
the beginning IBN SINA was committed to provide high quality health care services in
Bangladesh and within a very short period of time it achieved the target and fulfilled the
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commitment. It has also occupied a very prestigious position in the pharmaceutical field of
Bangladesh for its quality and ethical standard. Now IBN SINA expanding its business area
internationally across the world and has already started exporting. The is always devoted to
ensure the high quality of medicines by implementing state of art technologies and modern
machineries. The IBN SINA Pharmaceutical Industry has become a reputed Pharmaceutical
company in Bangladesh with sufficient expertise and experiences.
Significant Recent Event of the Industry:

The Pharmaceutical Industry plays a vital role in Bangladesh by means of improving general
health care standards, providing employment opportunities for thousands of people and having
a positive impact on the Balance of Payments of the country by exporting.
The pharmaceutical industry of Bangladesh has made significant progress. Some of the industries
are equipped with modern infrastructure facilities and producing pharmaceutical items of
international standard. 164 enterprises, out of registered 232 have been manufacturing medicine
mainly based on imported raw materials. Among the entrepreneurs a highly professional committed
group is endeavoring to upscale the production and export of pharmaceutical items.
The inception of the pharmaceutical industry in Bangladesh dates back to the 1950s when a few
multinationals and local entrepreneurs started with manufacturing facilities in the erstwhile East
Pakistan. By two decades many top ranking Multi-National Companies (MNCs) established their
manufacturing facilities in this part of the world. Pfizer, Glaxo, Fisons, Squibb, Hoechst, May and
Baker and Organon were prominent among them.
Before liberation the pharmaceutical sector was largely dependent on import and very few local
companies were involved in this sector. The local companies were only taking part in the
distribution channel of MNCs. Immediately after liberation the war-torn economy; disrupted
infrastructure and deficit in foreign currency aggravated the overall healthcare situation of the
country. The pharmaceutical sector remained as an Import based sector during early 70s. In 1981,
there were around 160 licensed pharmaceutical manufacturers, but local production was dominated
by the 8 multinational companies, which manufactured about 75% of the products.
The pharmaceutical industry has mainly evolved in the last 25 years after the 1982 Drug Ordinance
Act was passed, which limited the production of drugs to 150 essential drugs provided by WHO.
After the introduction of the Drug (Control) Ordinance of 1982, local companies improved the
range and quality of their products and began to emerge as key players in the industry. The
Government also fixed the price ceiling for 117 necessary drugs as well as banned import of any
medicaments, already being produced in Bangladesh.
Since the time when pharmaceutical market was largely dominated by the MNCs the
pharmaceutical industry has grown from strength to strength. Today nearly 25% of the market share
in the pharmaceutical industry is owned by the two local companies- Beximco and Square, and
most of the foreign companies are out of the country. At present the market leader is Square
Pharmaceuticals which has a market share of around 15%.
In 2010 Bangladesh pharmaceutical market was worth US$ 504Mn. And it is growing at a
steady average rate of 17.18%. The Pharmaceutical Sector is the second highest contributor to
the National Ex-Chequer and the largest White Collar Labor intensive employment sector of
the country. The finished formulation- manufacturing base of Bangladesh is very strong as
most of the pharmaceutical companies have their own manufacturing facilities. Unlike most of
the import-based countries of South Asia and Africa, 97% of the total demand of Bangladesh is
being met by local manufacturing. The remaining 3% basically constitutes import of very
specialized products like vaccines, anticancer products etc. Now, among the top 10
pharmaceutical companies of Bangladesh, 8 are local companies. The top two domestic
manufacturers, namely Square and Beximco Pharma are having a combined market share of
about 25% of the total pharmaceutical market of the country.
Bangladesh is exporting pharmaceutical items to 69 countries. At first, only 1/2 major company
took proactive efforts to initiate export of pharmaceuticals. They stated exporting bulk drugs as
well as finished formulations to some of the less regulated overseas markets like Myanmar, SriLanka and Nepal. In early 90s, few companies took initiative to explore some of moderately
regulated markets like Russia, Ukraine, Georgia and Singapore. Today, Bangladesh
Pharmaceutical Industrys 69 export destinations compare favorably to only 17 in 2001.
CHAPTER 3: RATIO ANALYSIS
Financial analysis:
This section contains the financial analysis of the selected four Pharmaceuticals Company. The
comparison is made between financial data of the Pharmaceuticals Company for last five years
(i.e. from 20062010). This information can be used as a benchmark against which an
individual Pharmaceutical Company asset and liability structure and earnings may be
measured.
Ratio Analysis:
Ratio analysis is a type of analysis that helps to better understand and guide the financial affairs
of the business. A ratio is a mathematical expression and is computed using information from
the balance sheet or income statement. This will help to take quality business management
decision and measure performance of the business.
Financial ratios can be classified according to the information they provide. Each category tells
us about different facets of a company's finances and operations. The following types of ratios
frequently are used:
Liquidity Ratios: Liquidity ratios provide information about a firm's ability to meet its
short-term financial obligations. Generally, the higher the value of the ratio, the larger
the margin of safety that the company possesses to cover short-term debts. They are of
particular interest to those extending short-term credit to the firm. Bankruptcy analysts
and mortgage originators frequently use the liquidity ratios to determine whether a
company will be able to continue as a going concern.
Leverage Ratios: These show the extent of debt used in a company's capital structure.
Any ratio used to calculate the financial leverage of a company to get an idea of the
company's methods of financing or to measure its ability to meet financial obligations.
There are several different ratios, but the main factors looked at include debt, equity,
assets and interest expenses.
Profitability Ratios: These use margin analysis and show the return on sales and
capital employed. Profitability ratios are used to determine the performance of the
companies. These ratios use two sources:
Companys ability to recover costs and expenses using the income
statement.
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The companys ability to earn income on the assets employed using the
balance sheet.
Market Ratios: Market ratios measure investor response to owning a company's stock
and also the cost of issuing stock. These ratios relate the firms stock price to its
earnings and book value per share & indicate what investors think of the companys
past performance and future prospects.
FINANCIAL RATIOS FOR SQUARE PHARMACEUTICALS:
LIQUIDITY RATIOS:
1. CURRENT RATIO
Current ratio = Current assets / Current liabilities
Year
Current Asset
Current Liabilities
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
4,031,684,955
3,682,510,712
4,411,836,436
3,843,512,855
4,774,311,194
2,260,755,481
2,555,566,286
3,500,845,103
2,640,868,554
2,216,744,401
Current Ratio=
Current Asset/Current Liabilities
1.78
1.44
1.26
1.45
2.15
Curre nt Ratio
2.5
2
1.5
1
0.5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Investors are interested in the current ratio because it indicates the ability of a company to pay
its current liabilities form current assets and, in this way, shows the strength of the companys
working capital position. The current ratio of Square Pharmaceuticals is relatively in a stable
position, which is encouraging for the investors. In the year 2005-2006 current ratio has been
increased. From the years 2006-2007 to 2008-2009, current ratio has been more or less steadily
increasing. But 2009-2010 current ratio more increased compare to above all the year.
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2. QUICK RATIO
Quick ratio = (Current Asset - Inventory) / Current liabilities
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Current Asset Inventory

2,689,320,477
2,138,318,914
2,385,100,114
1,744,757,624
2,567,233,112
Current Liabilities
2,260,755,481
2,555,566,286
3,500,845,103
2,640,868,554
2,216,744,401
Quick Ratio=
Quick Asset/Current Liabilities
1.19
0.84
0.68
0.66
1.16
Quick Ratio
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Quick ratio or the acid test measures the companys immediate liquidity without relying on
inventory. Inventories are the least liquid of a firms current assets. In 2006 & 2010, Quick
ratio is more increasing but 2007, 2008 & 2009 Quick ratio is decreasing.
Its current and quick asset seems to insufficient to cover its short-term obligations. However,
similar trends for current and quick ratios indicate that inventories are not too high- its other
liquid assets are too low.
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PROFITABILITY RATIOS:
4. NET PROFIT MARGIN RATIO
Net Profit Margin Ratio =Net Income/ Sales
Year
Net Income
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
1165864616
1303242840
1,381,863,093
1,890,052,929
2,087,871791
Sales
6089905396
7500811349
8,257,843,739
9,820,796,568
11,462,578,410
Net Profit Margin=

Net Income/ Sales
19.14%
17.37%
16.73%
19.24%
18.21%
Net Profit Margin Ratio

19.50%
19.00%
18.50%
18.00%
17.50%
17.00%
16.50%
16.00%
15.50%
15.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Net profit margin ratio measures the proportion of revenue that finds its way into profit. This
ratio measures how much net profit remains out of each dollar of sales after all are expenses
covered. We can see that, In the year 2006 it is increasing, 2007-2008 it is decreasing & 20092010 it is again increasing.
But the encouraging part for the investors is that the increase or decrease of percentage has
been minimal over the years; as result we can say the NPM has been steady for the last 5 years.
This is a very positive sign for the company, although the reason for decline should be
investigated.
4. PAYOUT RATIO
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Payout Ratio = Dividend per Share/ Earnings per Share

Cash
Dividend
75
50
40
40
35
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Earnings Per
Share
77.26
86.36
91.57
125.25
138.36
Payout Ratio=
Dividend per Share/ Earnings per Share
0.80
0.58
0.44
0.32
0.25
Pay out Ratio

1.2
1
0.8
0.6
0.4
0.2
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Pay out ratio continuously decreasing. In 2006 pay out ratio is highest
among the years and after that it is continuously decreasing, lowest payout ratio is in 2010. Pay
out ratio has shown the above graph.
LEVERAGE RATIOS
6. TOTAL DEBT RATIO
Total Debt Ratio=Total Liabilities/Total Assets
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Total Liabilities
2896972540
3153682392
4,286,086,715
3,301,845,222
3,475,120,453
Total Assets
9,298,987,000
10,486,940,000
12,703,127,420
13,251,242,856
15,029,500278
Ratio
0.312
0.301
0.337
0.250
0.231
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Total Debt Ratio

0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 Total debt ratio is increasing, 2007 it is decreasing, 2008 it is again increasing
& it is high among the year. In the year 2009 & 2010 it is decreasing. The Debt Asset ratio
shows the proportion of company assets, which are financed through debt capital. It indicates
what proportion of debt a company has relative to its assets. The measure gives an idea to the
leverage of the company along with the potential risks the company faces in terms of its debtload. A debt ratio of greater than 1 indicates that a company has more debt than assets,
meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
7. ASSET TO EQUITY RATIO
Asset To Equity Ratio=Total Asset/Owners' Equity

Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Total Asset
9,298,987,000
10,486,940,000
12,703,127,420
13,251,242,856
15,029,500,278
Owners Equity
6,402,015,000
7,333,258,000
8,417,040,705
9,949,397,634
11,554,379,825
Ratio
1.453
1.430
1.512
1.331
1.300
Asset To Equity Ratio

1.55
1.5
1.45
1.4
1.35
1.3
1.25
1.2
1.15
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
15
In the year 2006, 2007 Asset to equity ratio is increasing, In the year 2008 it is increasing high
among 5 years. In the year 2009 & 2010 it is also decreasing among the last 5 years. The
asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by
shareholders. It depends on the industry in which it operates its size, economic conditions, and
other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken
on substantial debt merely to remain in business. But it can also point to a company that is
wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong
firm that needs no debt, or an overly conservative company, foolishly foregoing business
opportunities.
MARKET RATIOS
7. PRICE EARNING RATIO (PER)
Price Earnings ratio = Market Price per share / Earnings per share
Price earnings ratio=
Year
Market price per

share
Earnings per share
2005-2006
2276
195.56
11.64
2006-2007
2447
218.61
11.19
2007-2008
4110
154.53
26.60
2008-2009
2935
156.56
18.75
2009-2010
3581
138.36
25.88
Market Price per share / Earnings per share
Price Earning Ratio

30
25
20
15
10
5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006, 2007 & 2009 Price earning ratio is decreasing. In the year 2007 it is fall down
among the 5 years. In the year 2008 & 2010 it is increasing but In the year 2008 it is increasing
high among the 5 years. Price-earnings ratio helps investors to judge whether the stock is under
16
priced or overprice. A high price earnings ratio means that investors are willing to pay a
premium for the companys stock because is expected to have higher than average future
earnings growth. Companies with high P/E ratios are more likely to be considered "risky"
investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.
8. Dividend Yield
Dividend yield on common stock = Dividend per share/ Market price per share
Dividend yield on common stock=
Year
Dividend per
share
Market price per

share
Dividend per share/ Market price per share
2005-2006
75
2276
3.30%
2006-2007
50
2447
2.04%
2007-2008
40
3300
1.21%
2008-2009
40
2935
1.36%
2009-2010
35
3581
0.98%
In the year 2006 to 2010 Dividend yield on common stock continuously decreasing. In 2006 it
is highest among the years and then it is continuously fall down and lowest dividend yield in
2010.
FINANCIAL RATIOS FOR BEXIMCO PHARMA:
LIQUIDITY RATIOS:
1. CURRENT RATIO
Year
Current Asset
Current Liabilities
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
3,357,393,266
2,923,775,458
2,861,891,654
6,916,737,893
6,191,667,831
2,527,420,798
1,627,972,936
2,602,032,267
2,321,451,642
2,513,157,232
Current Ratio=
1.33
1.80
1.09
2.98
2.46
17
Current Ratio
3.5
3
2.5
2
1.5
1
0.5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006-2008 current ratios is decreasing & 2008 is the low ratio among the 5 years. In
the year 2009 & 2010 current ratio is increasing & 2009 current ratio is high among the five
years. Investors are interested in the current ratio because it indicates the ability of a company
to pay its current liabilities form current assets and, in this way, shows the strength of the
companys working capital position.
2. QUICK RATIO
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010

1,602,952,978
1,271,295,167
1,356,603,561
5,193,784,609
4,207,858,387
Current Liabilities
2,527,420,798
1,627,972,936
2,602,032,267
2,321,451,642
2,513,157,232
Quick Ratio=
0.634
0.780
0.521
2.24
1.67
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Quick Ratio
2.5
2
1.5
1
0.5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2008 Quick ratio is decreasing & 2008 quick ratio is more decreasing
among the 5 years. In the years 2009 & 2010 Quick ratio is increasing but 2009 Quick ratio is
more increasing among the 5 years. Quick ratio or the acid test measures the companys
immediate liquidity without relying on inventory. Inventories are the least liquid of a firms
current assets.
PROFITABILITY RATIOS
Year
Net Income
Sales
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
470,658,563
353,067,878
545,341,273
624,740,307
1,051,648,808
3,702,317,159
3,597,024,812
4,010,167,059
4,868,254,915
6,490,847,353
Net Profit Margin=

Net Income/ Sales
12.71%
9.81%
13.60%
12.83%
16.20%

18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
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Net Profit Margin ratio is increasing all the 5 years except on in the year 2007 & it is the lowest
net profit margin ratio among the 5 years & 2010 is the highest net profit margin ratio among
the 5 years. Net profit margin ratio measures the proportion of revenue that finds its way into
profit. This ratio measures how much net profit remains out of each dollar of sales after all are
expenses covered.
4. PAYOUT RATIO
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Cash
Dividend
15
15
30
15
20
Earnings Per
Share
4.11
2.8
3.61
3.5
5.17
Payout Ratio=
3.65
5.35
8.31
4.29
3.88
In the year 2006 to 2010 pay out ratio increasing and decreasing. Highest pay out ratio among
the years in 2008 and lowest pay out ratio in 2006. Five years pay out ratio above shown the
graph.
LEVERAGE RATIOS
5. TOTAL DEBT RATIO
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Total Liabilities
3,962,592,062
3,702,479,293
4,369,463,296
9,006,226,808
5,398,313,058
Total Assets
11,912,512,487
11,953,418,940
14,819,665,441
19,891,933,422
21,372,399,509
Ratio
0.332
0.309
0.294
0.452
0.252
20
Total Debt Ratio

0.5
0.4
0.3
0.2
0.1
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006, 2007, 2009Total Debt ratio is increasing but 2008 & 2010 it is decreasing.
Among the 5 years lowest Total Debt ratio is 2010 & highest Total Debt ratio is 2009. The
Debt Asset ratio shows the proportion of company assets, which are financed through debt
capital. It indicates what proportion of debt a company has relative to its assets. The measure
gives an idea to the leverage of the company along with the potential risks the company faces
in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt
than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets
than debt.

Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Total Asset
11,912,512,487
11,953,418,940
14,819,665,441
19,891,933,422
21,372,399,509
Owners Equity
7,949,920,425
8,250,939,647
10,450,202,145
10,885,706,614
15,974,086,451
Ratio
1.50
1.45
1.42
1.83
1.34
21

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Asset To Equity ratio increasing and also decreasing. Among the 5
years lowest Asset to Equity ratio is 2010 & highest Asset to equity ratio is 2009. The
asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by
shareholders. It depends on the industry in which it operates its size, economic conditions, and
other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken
on substantial debt merely to remain in business. But it can also point to a company that is
wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong
firm that needs no debt, or an overly conservative company, foolishly foregoing business
opportunities
MARKET RATIOS
Year
Market price per

share
Earnings per share
2005-2006
53.7
4.11
13.06
2006-2007
58.9
2.8
21.03
2007-2008
167.7
3.61
46.45
2008-2009
155.8
3.5
44.51
2009-2010
135.1
5.17
26.13
22
Price Earning Ratio

50
45
40
35
30
25
20
15
10
5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Price Earning ratio is increasing and also decreasing. Among the 5
years lowest price earning ratio is 2006 and highest price earning ratio is 2008. Price-earnings
ratio helps investors to judge whether the stock is under priced or overprice. A high price
earnings ratio means that investors are willing to pay a premium for the companys stock
because is expected to have higher than average future earnings growth. Companies with high
P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios,
since a high P/E ratio signifies high expectations.
8. Dividend Yield
Year
Dividend per
share
Market price per

share
2005-2006
15
53.7
27.93%
2006-2007
15
58.9
25.46%
2007-2008
30
167.7
17.88%
2008-2009
15
155.8
9.62%
2009-2010
20
135.1
14.80%
23
Dividend Yield
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Dividend Yield of Common Stock increasing and also decreasing.
Among the 5 years in 2006 Dividend Yield of Common Stock is high and in 2009 Dividend
Yield of Common Stock is low. Dividend Yield is the rate of return investors get from holding
the share. For dividend investors, one of the telling metrics is Dividend Yield. Not all
companies pay out dividends, but this ratio can be used for those that do. Older, wellestablished companies tend to payout a higher percentage and their dividend history can be
more consistent.
FINANCIAL RATIOS FOR RENATA PHARMA
LIQUIDITY RATIOS
1. CURRENT RATIO
Year
Current Asset
Current Liabilities
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
979,254,859
988,092,820
1,506,070,972
1,643,106,431
2,063,325,826
658,881,691
717,068,650
1,313,392,836
1,409,726,600
1,851,204,608
Current Ratio=
1.49
1.38
1.15
1.17
1.11
24
Current Ratio
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Current ratio is increasing and decreasing. Among the 5 years in 2006
Current ratio is high and in 2010 Current ratio is low. Five years Current ratio have shown the
above graph. Investors are interested in the current ratio because it indicates the ability of a
company to pay its current liabilities form current assets and, in this way, shows the strength of
the companys working capital position.
2. QUICK RATIO
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010

340,469,907
326,080,675
546,656,382
567,795,850
767,470,662
Current Liabilities
658,881,691
717,068,650
1,313,392,836
1,409,726,600
1,851,204,608
Quick Ratio=
0.52
0.45
0.42
0.40
0.41
Quick Ratio
0.6
0.5
0.4
0.3
0.2
0.1
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
25
In the year 2006 to 2010 Quick ratio is increasing and decreasing. Among the 5 years in 2006
Quick ratio is high and in 2009 Quick ratio is low. Five years Quick ratios have shown the
above graph. Quick ratio or the acid test measures the companys immediate liquidity without
relying on inventory. Inventories are the least liquid of a firms current assets.
Year
Net Income
Sales
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
242,131,637
335,923,107
443,145,804
603,524,452
851,428,532
1,927,731,885
2,534,174,981
3,089,746,417
3,900,732,314
5,090,318,113
Net Profit Margin=

Net Income/ Sales
12.56%
13.25%
14.34%
15.47%
16.73%

18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Net Profit Margin ratio is increasing and decreasing. Among the 5
years in 2006 Net Profit Margin ratio is low and in 2010 Net Profit Margin ratio is high. Five
years Net Profit Margin ratios have shown the above graph.
covered.
26
4. PAYOUT RATIO
Cash
Dividend
70
70
75
85
85
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Earnings Per
Share
133.96
185.85
239.64
333.90
471.06
Payout Ratio=
0.522
0.376
0.312
0.254
0.180
Payout Ratio
0.6
0.5
0.4
0.3
0.2
0.1
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Payout ratio is increasing and decreasing. Among the 5 years in 2006
Payout ratio is high and in 2010 Payout ratio is low. Five years Payout ratios have shown the
above graph.
LEVERAGE RATIO
5. TOTAL DEBT RATIO
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Total Liabilities
794,199,946
877,387,885
1,500,159,577
1,644,089,330
2,142,461,081
Total Assets
1,776,512,741
2,154,993,391
3,162,232,934
3,851,369,286
5,113,932,025
Ratio
0.45
0.41
0.47
0.43
0.42
27
Total Debt Ratio

0.48
0.47
0.46
0.45
0.44
0.43
0.42
0.41
0.4
0.39
0.38
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Total Debt ratio is increasing and decreasing. Among the 5 years in
2008 Total Debt ratio is highest and in 2007 Total Debt ratio is lowest. Five years Total Debt
ratios have shown the above graph. The Debt Asset ratio shows the proportion of company assets,
which are financed through debt capital. It indicates what proportion of debt a company has relative
to its assets. The measure gives an idea to the leverage of the company along with the potential
risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a
company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company
has more assets than debt.

Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Total Asset
1,776,512,741
2,154,993,391
3,162,232,934
3,851,369,286
5,113,932,025
Owners Equity
982,312,795
1,277,605,506
1,662,073,557
2,207,279,956
2,971,470,944
Ratio
1.80
1.69
1.90
1.74
1.72
28

1.95
1.9
1.85
1.8
1.75
1.7
1.65
1.6
1.55
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Asset To Equity ratio is increasing and decreasing. Among the 5 years
in 2008 Asset To Equity ratio is highest and in 2007 Asset To Equity ratio is lowest. Five years
asset To Equity ratios have shown the above graph.
The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned
by shareholders. It depends on the industry in which it operates its size, economic conditions,
and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has
taken on substantial debt merely to remain in business. But it can also point to a company that
is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a
strong firm that needs no debt, or an overly conservative company, foolishly foregoing business
opportunities.
MARKET RATIOS
Year
Market price per

share
Earnings per share
2005-2006
3,099.25
133.96
23.13
2006-2007
7,491.25
185.85
40.30
2007-2008
7,789.25
239.64
32.50
2008-2009
12,051.50
333.90
36.09
2009-2010
12,942.75
471.06
27.47
29
Price Earning Ratio

45
40
35
30
25
20
15
10
5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Price Earning ratio is increasing and decreasing. Among the 5 years in
2006 Price Earning ratio is lowest and in 2007 Price Earning ratio is highest. Five years Price
Earning ratios have shown the above graph.
Price-earnings ratio helps investors to judge whether the stock is under priced or overprice. A
high price earnings ratio means that investors are willing to pay a premium for the companys
stock because is expected to have higher than average future earnings growth. Companies with
high P/E ratios are more likely to be considered "risky" investments than those with low P/E
ratios, since a high P/E ratio signifies high expectations.
8. Dividend Yield
Year
Dividend per
share
Market price per

share
2005-2006
70
3,099.25
0.023
2006-2007
70
7,491.25
9.34
2007-2008
75
7,789.25
9.63
2008-2009
85
12,051.50
7.05
2009-2010
85
12,942.75
6.57
30
Dividend Yield
12
10
8
6
4
2
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Dividend Yield is increasing and decreasing. Among the 5 years in
2006 Dividend Yield on common stock is lowest and in 2008 Dividend Yield on common stock
is highest. Five years Dividend Yield has shown the above graph. Dividend Yield is the rate of
return investors get from holding the share. For dividend investors, one of the telling metrics is
Dividend Yield. Not all companies pay out dividends, but this ratio can be used for those that
do. Older, well-established companies tend to payout a higher percentage and their dividend
history can be more consistent.
FINANCIAL RATIOS FOR IBN SINA PHARMA
LIQUIDITY RATIOS
1. CURRENT RATIO
Year
Current Asset
Current Liabilities
2005-2006
112,487,404
130,741,119
2006-2007
2007-2008
2008-2009
2009-2010
127,775,501
149,908,877
220,130,579
225,056,867
167,004,222
191,629,863
264,653,403
308,437,653
Current Ratio=
0.86
0.77
0.78
0.83
0.73
31
Current Ratio
0.9
0.85
0.8
0.75
0.7
0.65
2005-2006
2006-2007
2007-2008
2008-2009
2009-1010
In the year 2006 to 2010 Current ratio is increasing and decreasing. Among the 5 years in 2009
Current ratio is lowest and in 2010 Current ratio is highest. Five years Current ratio has shown
the above graph.
Investors are interested in the current ratio because it indicates the ability of a company to pay
its current liabilities form current assets and, in this way, shows the strength of the companys
working capital position.
2. QUICK RATIO
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010

60,938,187
75,632,803
91,435,547
160,095,107
162,825,166
Current Liabilities
130,741,119
167,004,222
191,629,863
264,653,403
308,437,653
Quick Ratio=
0.466
0.453
0.477
0.605
0.528
32
Quick Ratio
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Quick ratio is increasing and decreasing. Among the 5 years in 2006
Quick ratio is lowest and in 2010 Quick ratio is highest. Five years Quick ratios have shown
the above graph. Quick ratio or the acid test measures the companys immediate liquidity
without relying on inventory. Inventories are the least liquid of a firms current assets. Its
current and quick asset seems to insufficient to cover its short-term obligations. However,
similar trends for current and quick ratios indicate that inventories are not too high- its other
liquid assets are too low.
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Net Income
32,761,931
20,539,597
26,111,294
43,285,209
49,233,664
Sales
Net Profit Margin=

Net Income/ Sales
534,738,092
6.12%
577,427,115
791,683,415
1,052,308,721
1,277,868,846
3.55%
2.30%
4.11%
3.85%
33

7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Net Profit Margin ratio is increasing and decreasing. Among the 5
years in 2007 Net Profit Margin ratio is lowest and in 2010 Net Profit Margin ratio is highest.
Five years Net Profit Margin ratios have shown the above graph.
covered.
4. PAYOUT RATIO
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Cash
Dividend
21
23
25
7.5
21
Earnings Per
Share
22.82
31.14
48.09
54.70
36.40
Payout Ratio=
0.92
0.74
0.52
0.14
0.58
34
Payout Ratio
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Payout ratio is increasing and decreasing. Among the 5 years in 2009
Payout ratio is lowest and in 2006 Payout ratio is highest. Five years Net Payout ratios have
shown the above graph.
The payout ratio measures the proportion of earnings that is paid out as dividends. In the above
table, we havent considered the Stock dividend in our calculation
LEVERAGE RATIOS
5. TOTAL DEBT RATIO
Year
2005-2006
2006-2007
Total Liabilities
130,741,119
167,004,222
2007-2008
231,900,136
2008-2009
324,977,527
2009-2010
388,683,160
Total Assets
159,972,192
169,212,064
397,991,497
Ratio
0.82
0.98
513,654,097
604,093,394
0.75
0.58
0.64
35
Total Debt Ratio

0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Total Debt ratio is increasing and decreasing. Among the 5 years in
2008 Total Debt ratio is highest and in 2010 Total Debt ratio is lowest. Five years Net Total
Debt ratios have shown the above graph.
The Debt Asset ratio shows the proportion of company assets, which are financed through debt
capital. It indicates what proportion of debt a company has relative to its assets. The measure
gives an idea to the leverage of the company along with the potential risks the company faces
in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt
than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets
than debt.

Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Total Asset
159,972,192
169,212,064
397,991,497
513,654,097
604,093,394
Owners Equity
159,972,192
161,611,789
166,091,361
188,676,570
215,410,234
Ratio
1.00
1.05
2.40
2.72
2.80
36
Asset to Equity Ratio

3
2.5
2
1.5
1
0.5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Asset To Equity ratio is increasing and decreasing. Among the 5 years
in 2006 Asset To Equity ratio is lowest and in 2010 Asset To Equity ratio is highest. Five years
Asset To Equity ratios have shown the above graph.
The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned
by shareholders. It depends on the industry in which it operates its size, economic conditions,
and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has
taken on substantial debt merely to remain in business. But it can also point to a company that
is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a
strong firm that needs no debt, or an overly conservative company, foolishly foregoing business
opportunities.
MARKET RATIOS
Year
Market price per

share
Earnings per share
2005-2006
639.50
22.82
28.02
2006-2007
786.75
31.14
25.26
2007-2008
995.75
48.09
20.70
2008-2009
1552.50
54.70
28.38
2009-2010
1652.50
57.80
28.58
37
Price Earning Ratio

35
30
25
20
15
10
5
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Price Earning ratio is increasing and decreasing. Among the 5 years
in 2008 Price Earning ratio is lowest and in 2010 Price Earning ratio is highest. Five years
Price Earning ratios have shown the above graph.
8. Dividend Yield
Year
Dividend per
share
Market price per

share
2005-2006
21
639.50
0.033
2006-2007
22
786.75
0.028
2007-2008
25
995.75
0.025
2008-2009
20
1552.50
0.013
2009-2010
23
1652.50
0.014
38
Dividend Yield
0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
In the year 2006 to 2010 Price Dividend Yield on Common Stock is increasing and decreasing.
Among the 5 years in 2009 Dividend Yield on Common Stock is lowest and in 2006 Dividend
Yield on Common Stock is highest. Five years Dividend Yield has shown the above graph.
Dividend Yield is the rate of return investors get from holding the share. For dividend
investors, one of the telling metrics is Dividend Yield. Not all companies pay out dividends,
but this ratio can be used for those that do. Older, well-established companies tend to payout a
higher percentage and their dividend history can be more consistent.
BENCHMARK ANALYSIS:
From the Current ratio of four Pharmaceuticals company at a glance, it can be said that, in 2006
& 2008 Square is the best, in 2007, 2009 & 2010 Beximco is the best.
Name of the
Pharma
Year
2006
2007
2008
2009
2010
Square
178%
144%
126%
145%
215%
Beximco
133%
180%
109%
298%
246%
Renata
149%
138%
115%
117%
111%
IBN SINA
86%
77%
78%
83%
73%
Square
Beximco
Square
Beximco
Beximco
Best Pharma
39
From the Quick ratio of four Pharmaceuticals company, it can be said that, in 2006 to 2008
Square is the best among four Pharma company and in 2009, 2010 Beximco is best.
Name of the
Pharma
Year
2006
2007
2008
2009
2010
Square
119%
84%
68%
66%
116%
Beximco
63%
78%
52%
224%
167%
Renata
52%
45%
42%
40%
41%
46.3%
45.7%
47.4%
60.5%
52.8%
IBN SINA
Best
Square
Square
Square
Beximco
Beximco
Pharma
From the Net Profit Margin ratio of four Pharmaceuticals company at a glance, it can be said
that, in 2006 to 2010 Square is the best Pharma all the year among four Pharma company.
Name of the
pharma
Year
2006
2007
2008
2009
2010
Square
19.14%
17.37%
16.73%
19.24%
18.21%
Beximco
12.78%
9.81%
13.60%
12.83%
16.20%
Renata
12.56%
13.25%
14.34%
15.47%
16.73%
IBN SINA
6.12%
3.56%
2.30%
4.11%
3.85%
Best
Square
Square
Square
Square
Square
Pharma
From
the Pay out ratio of four Pharmaceuticals company at a glance, it can be said that, in 2006
to 2010 Beximco is the best Pharma in terms of Pay out ratio among four Pharma company.
Name of the
Pharma
Year
2006
2007
2008
2009
2010
Square
80%
58%
44%
32%
25%
Beximco
369%
536%
831%
429%
388%
Renata
52.2 %
37.6%
31.2%
25.4%
18%
92%
74%
52%
14%
58%
Beximco
Beximco
Beximco
Beximco
IBN SINA
Best
Pharma
Beximco
From the Total Debt ratio of four Pharmaceuticals company at a glance, it can be said that, in
2006 to 2010 IBN SINA is the best Pharma in terms of Total Debt ratio among four Pharma
company only except in 2008.
40
Name of the
Pharma
Year
2006
2007
2008
2009
2010
Square
31.2%
30.1%
33.7%
25%
23.1%
Beximco
33.2%
30.9%
29.4%
45.2%
25.2%
Renata
45%
41%
47%
43%
42%
IBN SINA
53%
98%
45%
75%
64%
Best
IBN SINA
IBN SINA
RENATA
IBN SINA
IBN SINA
Pharma
From
the Asset to Equity ratio of four Pharmaceuticals company at a glance, it can be said
that, in 2008 to 2010 Ibn Sina is the best Pharma, in 2006 to 2007 Renata is the best Pharma in
terms of Asset to Equity ratio.
Name of the
Pharma
Year
2006
2007
2008
2009
2010
Square
145%
143%
151%
133%
130%
Beximco
150%
145%
142%
183%
134%
Renata
180%
169%
190%
174%
172%
Ibn Sina
100%
105%
240%
272%
280%
Best
Reneta
Renata
Ibn Sina
Ibn Sina
Ibn Sina
Pharma
From
the Price Earning ratio of four Pharmaceuticals company at a glance, it can be said that in
2006 & 2010 Ibn Sina is the best, in 2007 Renata, in 2008 & 2009 Beximco is best among
other Pharmaceuticals company.
Name of the
Pharma
Year
2006
2007
2008
2009
2010
Square
11.64
11.19
26.60
18.75
25.88
Beximco
13.06
21.03
46.45
44.51
26.13
Renata
23.13
40.30
32.50
36.09
27.47
Ibn Sina
28.02
25.26
20.70
28.38
28.58
Best
Ibn Sina
Renata
Beximco
Beximco
Ibn Sina
Pharma
From
the Dividend Yield of common stock ratio of four Pharmaceuticals company at a glance,
it can be said that in 2006 to 2010 Beximco Pharma is the best Pharma among four
Pharmaceuticals company.
41
Name of the
Pharma
Year
2006
2007
2008
2009
2010
Square
3.30%
2.63%
1.21%
1.36%
0.98%
Beximco
27.93%
25.46%
17.88%
9.46%
14.80%
Renata
2.35%
0.93%
0.96%
0.70%
0.65%
Ibn Sina
3.2%
2.8%
2.5%
1.3%
1.4%
Best
Pharma
Beximco
Beximco
Beximco
Beximco
Beximco
SQUARE PHARMACEUTICALS LIMITED:

HORIZONTAL ANALYSIS OF INCOME STATEMENTS
2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
NET TURNOVER
14.21
23.31
10.09
18.93
9.68
COSTS OF GOODS SOLD
11.58
21.07
13.77
16.81
4.84
GROSS PROFIT
18.04
26.04
5.24
21.94
16.72
Selling&DistributionExp
18.20
25.31
22.08
8.05
24.91
Administrative Expenses
16.63
118.34
16.01
-2.35
12.02
Total Operating Exp.
18.13
42.90
20.32
5.16
21.66
Profit From Operations
17.90
15.54
-6.38
38.56
13.55
Other income
18.13
29.30
174.65
10.07
-37.01
Financial Expenses
-52.61
69.34
48.56
12.86
-29.55
NET PROFIT
WPPF
1.32
12.38
8.46
34.39
13.18
1.32
12.38
8.46
34.39
14.44
1.32
12.38
8.46
34.39
13.11
4.40
17.72
44.66
14.48
11.78
6.03
36.78
10.47
Operating Expenses:
BEFORE
Allocation for WPPF

NET PROFIT BEFORE TAX
Provision for income

29.61
tax
NET PROFIT AFTER -7.17
TAX
42
From the above table it can be seen that the percentage change in net turnover has been
fluctuating over the period. The most significant change occurred in the 2007 with a 23.31%
rise & in 2010 with a 9.68% decline. The cost of goods sold has also been fluctuating, with a
sharp decline in 2010 & in 2007 sharp rise. The Gross Profit has also been fluctuating, with a
sharp rise in 2007 with 21.94% & decline in 2008 with 5.24%.
The total operating expenses saw a sharp increase in 2007 & decline in 2009. Profit from
operations was highest in the following period in 2009 and decline in the most recent previous
year. The net profit after tax has been decreasing particularly in 2006 & 2008. There has been
negative growth in 2006 and increasing in 2009 with 36.78%.
BEXIMCO PHARMACEUTICALS LIMITED:

2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
NET TURNOVER
11.28
-2.84
11.48
21.40
33.33
COSTS OF GOODS SOLD
11.46
-0.189
1.80
28.12
29.28
GROSS PROFIT
11.07
-5.87
23.18
14.68
37.84
Operating Expenses:
18.03
-0.99
3.46
28.98
18.19
16.66
-0.61
3.11
26.96
20.12
26.28
-3.15
5.44
40.22
8.47
3.06
-12.29
52.54
0.25
63.37
Other income
677.05
-65.07
-96.50
28852.21
129.16
Finance cost
14.13
0.56
-2.00
15.93
128.79
7.80
-23.61
78.67
21.47
56.95
Contribution to workers
Profit contribution
7.80
-23.61
78.67
21.47
56.95
PROFIT BEFORE TAX
7.80
-23.61
78.67
21.47
56.95
Income tax expense
1250.03
-11.36
262.11
43.82
27.66
Current Tax
-23.33
62.87
201.28
-24.98
54.46
14.56
68.33
NET PROFIT
WPPF
BEFORE
NET PROFIT AFTER -3.80

TAX
43
rise & in 2007 with a -2.84% decline. The cost of goods sold has also been fluctuating, with a
sharp decline in 2007 & sharp rise 2010. The Gross Profit has also been fluctuating, with a
sharp rise in 2010 with 37.84% & decline in 2007 with -5.87%.
operations was highest in the following period in 2010 and decline in 2007. The net profit after
tax has been decreasing particularly in 2006 & 2007 there has been negative growth and
increasing in 2010 with 68.33%.
IBN SINA PHARMACEUTICALS LIMITED

2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
SALES
12.53
7.98
37.11
32.90
21.43
Cost of Goods Sold
10.78
6.50
37.66
28.90
20.31
GROSS PROFIT
22.13
10.69
36.13
36.56
23.27
Operating Expenses
27.56
26.25
37.72
36.98
26.01
OPERATING PROFIT
16.32
-41.17
24.78
64.35
5.34
Financial Charges
107.52
120.53
94.11
109.52
7.30
Non Operating income
32.54
26.56
60.22
40.64
54.22
Workers P.P Fund
39.09
-37.31
31.82
46.06
12.83
30.72
-37.31
21.87
58.01
12.83
Provision Income Tax
6.76
-37.31
7.66
33.13
9.19
21.73
-37.31
27.13
65.77
13.74
NET PROFIT AFTER

TAX
44
rise & decline in 2007 with 7.98%. The cost of goods sold has also been fluctuating, with a
sharp rise in 2009 with 36.56% & decline in 2007 with 10.69%.
operations was highest in the following period in 2009 with 64.35% and decline in 2007. The
Net profit after tax has been decreasing particularly in 2007. There has been negative growth
and increasing in 2009 with 65.77%
RENATA PHARMACEUTICALS LIMITED

2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
TURNOVER
34.88
31.46
21.92
26.25
30.50
Cost of Sales
3.57
32.76
17.52
19.26
32.13
GROSS PROFIT
101.58
30.12
26.55
33.58
29.06
Other income
171.63
-64.30
31.41
-47.79
-25.57
Admin. Selling Exp.
17.03
20.60
21.30
32.37
23.23
OPERATING PROFIT
127.23
36.04
33.30
32.16
35.36
Other expenses
-65.27
24.21
80.70
14.19
38.53
Contribution to WPPF
202.25
39.51
30.65
34.94
37.25
202.25
34.39
30.71
34.94
37.25
Current Tax
44.08
24.02
36.64
14.58
23.47
NET PROFIT AFTER 25.74

TAX
38.73
28.94
39.34
41.07
Operating Expenses:
rise & in 2008 decline with 21.92% . The cost of goods sold has also been fluctuating, with a
sharp rise in 2006 with 101.58% & decline in 2008 with 26.55%. Profit from operations was
highest in the following period in 2006 with 127.23% and decline in 2009 with 32.16%. The
Net Profit after tax has been increasing all the five years. The Net profit after tax highest in the
following period in 2010 with 41.07% and lowest in 2006 with 25.74%.
45

HORIZONTAL ANALYSIS OF BALANCE SHEET & SHAREHOLDERS
EQUITY STATEMENTS
2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
12.90
-1.88
29.18
21.85
13.47
9.00
107.11
15.79
19.84
14.92
56.82
-55.34
22.83
45.74
29.35
24.82
11.49
-8.66
19.80
-12.88
24.22
17.25
7.93
15.03
31.25
3.55
5.16
11.82
11.58
32.56
6.43
14.00
42.02
22.14
-9.86
37.61
979.36
-25.20
6.45
-54.11
76.11
-55.84
46.79
42.94
-11.83
17.59
12.77
21.13
4.31
13.42
14.96
15
-
14.54
14.78
18.20
16.13
20
50
35
25
16.28
24.06
22.48
35.66
63.47
-5.98
31.28
28.49
23.70
-18.22
22.33
-15.83
90.38
211.64
73.05
-25.36
129.60
Deferred tax liability
54.77
-
13.04
36.99
15.64
6.88
CURRENT
LIABILITIES:
15.94
23.63
31.90
-24.56
-16.06
7.36
82.97
-13.86
66.58
-42.53
-52.00
ASSETS:
Non-current Assets:
Property,
carrying value
Capital
progress
Plant
work
in
Investment long term

CURRENT ASSETS
Inventories
Trade debtors
15.35
24.34
Advances, Deposits
Investment
in
marketable securities
-48.01
Short term loan

Cash
and
equivalents
cash
TOTAL ASSETS
LIABILITIES
&SHAREHOLDERS
EQUITY:
Share Capital
Share Premium
General Reserve
Tax Holiday Reserve
Retained Earnings
NON-CURRENT
LIABILITIES:
Long term loans
Short term Bank loan

Long term loans
-17.10
3.05
-
46
Trade creditors
-5.31
Liabilities for expenses

Liabilities
finance
for
-23.66
31.45
-0.47
56.33
-50.64
-5.98
23.04
217.74
6.87
11.39
115.46
-18.84
53.94
-8.11
21.13
4.31
13.42
-51.39
other
59.24
TOTAL
SHAREHOLDERS
EQUITY
AND
LIABILITY
17.59
12.77

EQUITY STATEMENTS
2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
32.43
5.55
32.43
8.50
17.00
32.56
5.64
32.43
8.77
16.63
-12.58
-92.15
118.56
Current Assets
-2.11
-12.92
-2.12
141.68
-10.48
Inventories
2.39
-58.12
2.39
14.46
15.14
4.20
28.63
3.20
14.25
-44.82
16.14
0.848
37.74
18.33
Loans, advances
-2.01
15.94
-20.62
28.41
11.43
Cash equivalents
35.60
-85.25
-14.06
1337.15
39.02
TOTAL
ASSSETS
8.83
0.343
23.98
34.23
7.44
16.55
3.79
26.65
4.17
46.74
ASSETS
Non current Asset
Property, plant
Investment
shares
in
Spares & supplier

Accounts
receivable
Shareholders
Equity
Issued
share
47
capital
8.52
10.00
10.00
20.00
38.80
Share premium
253.71
Excess of issue
price
38.36
-5.48
-5.11
-4.75
12.03
-1.00
12.86
4.92
25.58
6.93
18.79
-11.55
44.55
-14.80
278.22
-56.84
-16.43
53.22
-18.56
33.06
-1.18
12.26
15.63
11.23
12.02
9.26
37.99
-17.71
-9.62
659.33
83.62
1.02
-35.59
59.83
-10.78
8.26
22.67
-30.34
61.05
-0.707
13.00
Creditors
and
other payable
-33.19
-25.58
-3.18
55.75
5.47
Accrued Expenses
68.56
-49.08
36.17
-3.28
14.43
1466.89
-74.75
-3.52
-45.49
-12.72
-70.09
155.80
246.06
-51.00
8.83
0.343
23.98
34.23
7.44
Capital Reserve
on Merger
Revaluation
surplus
Tax
reserve
holiday
Retained Earnings
Non
Current
Liability:
Long
borrowings
term
Liability
for
gratuity & WPPF
Deferred
liability
tax
Current liabilities
&
Provisions:
Short
borrowing
term
Dividend Payable
Income
payable
tax
Total Liabilities
& Shareholders
equity:

EQUITY STATEMENTS
48
2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
15.50
34.31
58.90
18.32
29.13
18.00
29.05
29.64
24.45
50.08
20.60
25.62
13.59
1.15
17.32
31.81
46.84
2.24
12.14
15.14
2.67
3.66
655.53
-87.66
-58.38
237.35
20.46
65.06
37.02
9.02
27.50
115.56
138.23
-5.68
12.23
5.78
135.20
29.06
17.60
1.02
-
2.77
16.74
13.60
14.17
2.34
31.50
28.35
57.60
49.80
33.02
90.17
115.10
43.52
35.16
31.19
27.79
-58.47
-71.00
78.83
38.11
16.54
67.94
-9.31
84.28
10.03
24.18
6.90
12.76
-5.78
186.92
-5.47
23.06
5.43
-1.43
-29.76
14.10
-25.34
-4.10
6.29
34.97
35.11
15.96
10.40
-1.57
-17.68
20.60
24.66
12.87
ASSTS:
NON CURRENT
ASSETS
Property, plant &
equipment
Investment
Deferred Tax Asset
CURRENT
ASSETS:
Inventories
Sundry Debtors
Advances,
Deposits
prepayments
Cash
&
equivalents
&
17.57
cash
31.21
TOTAL ASSETS
Shareholders
Equity:
Share capital
Tax
reserve
holiday
Retained Earning
NON CURRENT
LIABILITIES:
Long term Finance
Deferred Liability
Deferred
Liability
tax
CURRENT
LIABIITIES:
27.74
Short term Finance

Long term Finance
-2.87
7.52
Deposits
Creditors
Accrued Expenses
Other Finance
Income
Liability
tax
-4.56
34.75
5.06
-17.01
14.74
TOTAL
49
SHAREHOLDER
12.23
5.78
EQUITY
&
LIABILITIES
135.20
29.11
17.60

HORIZONTAL ANALYSIS OF BALANCE SHEET & SHAREHOLDERS EQUITY
STATEMENTS
2006
%change
2007
%change
2008
%change
2009
%change
2010
%change
72.59
15.64
27.31
37.64
83.67
-68.46
593.51
86.38
29.23
-50.60
Other investment
737.78
42.41
394.21
Total
noncurrent Assets
32.39
46.36
41.93
33.34
38.15
CURRENT
ASSETS:
64.47
3.64
44.92
12.08
20.51
Inventories
22.44
-1.96
76.77
-0.10
39.11
85.20
38.94
-4.59
1.76
37.24
-8.29
-41.18
155.19
16.32
24.53
45.65
0.90
52.42
9.09
25.57
ASSETS:
Non-current
Assets:
Property, plant &
equipment
Capital work in
progress
Investment
subsidiary
in
Trade & other

receivables
Advances,
Deposits
Prepayments
&
Cash & Cash

equivalents
Total
Current
50
Assets
39.38
21.30
46.74
21.79
32.78
EQUITY
&
LIABILITIES:
20.00
20.00
20.00
25.00
25.00
Share Capital
-0.30
-0.30
-0.31
-0.31
-0.31
1.26
-1.24
12.80
57.66
48.98
40.55
40.13
36.75
36.33
37.69
26.89
30.06
30.09
32.80
34.62
20.44
22.42
18.30
18.01
11.56
11.95
13.90
14.25
35.12
38.60
16.35
18.48
16.50
25.48
24.28
93.24
-2.79
127.72
-3.49
42.17
210.04
-26.50
235.11
-78.05
13.82
Accrued expenses
7.73
38.01
35.64
29.26
28.46
Other liabilities
151.75
80.16
-35.12
197.00
17.54
for
17.07
-0.28
56.49
18.48
6.24
Total
current
liabilities
71.52
8.83
83.16
7.33
31.32
39.38
21.30
46.74
21.79
32.78
Total Assets
Revaluation
Surplus
Tax
Reserve
holiday
Retained earnings
Total
equity
attributable
to
equity holders
Non-Current
Liabilities:
Deferred Liability
Deferred
liabilities
tax
Total Non-current
liabilities
Current
Liabilities:
Bank overdraft
Creditors goods
Provision
taxation
Total equity &

Liabilities
SQUARE PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
2006
2007
2008
2009
2010
51
Cash Flows from
Operating
Activities
RECEIPTS:
Collection from sales
Others
PAYMENTS:
6,075,711,742
10,517,860
6,086,229,602
7,455,061,355
8,231,097,525
9,706,402,257
11,401,786,553
449,727,661
466,326,850
448,178,202
8,,680,825,186
10,172,729,107
11,849,964,755
4,434,614,344
4,595,248,761
4,993,049,492
1,777,607,737,
2,075,086,488
2,152,581,352
2,942,764,932
95,827,359
7,550,888,714
Purchase of raw &

Packaging materials
3,093,893,074
Manufacturing Exp.
1,333,348,859
Bank interest
139,863,636
236,845,084
351,868,423
397,135,963
308,861,107
Income tax
284,812,892
343,650,860
458,227,366
475,997,448
855,888,639
Workers profit fund
43,530024
52,779,178
58,051,027
60,192,28
82,353,560
Others
1,625902
1,325,262
2,148,834
3,666,917
3,529,132
6,101,020,591
7,379,996,482
7,684,822,669
9,186,446,862
1,449,868,123
1,300,828,704
2,487,906,428
2,663,517,893
(1,106,201,471)
(877,960,724)
(1,464,938,454)
8,985,055
8,806250
12,475,331
Net cash provided by

Operating Expenses
4,897,074,387
3,688,812,470,
CASH FLOW FROM

INVESTING
ACTIVITIES:
Purchase Fixed Asset
(253,126,399)
Disposal Fixed Asset
5,362,331
Pre-operating cost
Investment in Square
Textiles Ltd
Hospitals Ltd.
Informatix Ltd.
Knit Fabrics Ltd
Fashions Ltd
(782,151,851)
3,972,492
(500,000,000)
(500,000,000)
(280,000,000)
100,000,000
(500,000,000)
92,000,000
(3,157,800)
(100,000,000)
48,000,000
(392,000,000)
(316,400,000)
400,000,000
(198,000,000)
(150,000,000)
(249,000,000)
220,000,000
(18,100,000)
(109,875,230)
(634,347,093)
Biotech Ltd
(1,229,428,470)
Capital work inprogress
Interest received
Dividend received
418,000,000
123,100,425
351,075,545
(1,089,091,048)
(233,668,370)
88,000,686
36,425,250
1,895,521,793
89,551,011
69,421,514
112,595,980
(1,873,856,298)
(1,569,806,551)
(1,639,252,295)
52
Net Cash used in

Investing Activities
CASH
FLOWS
FROM FINANCING
ACTIVITIES:
787,604,783
Long
term
received
loan
Long
repaid
loan
term
Short
term
loan
decrease/(increase)
increase
414,288,000
151,162,607
1,091,897,800
(237,046,566)
(305,401,660)
(342,522,688)
850,915,306
(1,135,347,402)
(797,901,934)
(91,608,631)
817,344,614
(527,579,221)
150,000,000
(323,915,587)
100,895,979
(397,361,793)
(334,462,773)
347,619,691
478,230,949
(332,640,000)
(372,000,000)
(298,080,000
(357,696,000)
(482,489,600)
(165,416,618)
268,787,867
638,468,109
(829,337,841)
(1,058,995,643)
65,440,515
88,162,046
(34,730,045)
139,855,179
205,295,694
293,457,740
205,295,694
293,457,740
258,727,695
Dividend paid
Net Cash Provided by

Financing Activities
Decrease in cash and
cash Equivalent
Cash
and
Cash
Equivalent at the
opening
(65,353351)
(176,865,803)
382,074,333
316,720,982
Cash
and
Cash
Equivalent at the
closing
316,720,982
139,855,179
From the above table it can be seen that, cash position of Square Pharmaceuticals 2006 to 2010
is very good. In the year 2006-2010 cash and cash equivalent at the closing is rise sharp
in 2006 and lowest cash and cash equivalent at the closing in 2007. In the year 2008 cash
position has improved, In the year 2009 & 2010 cash position again increasing.
RENATA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
53
2006
2007
2008
2009
2010
2,885,087,954
3,464,026,571
4,524,734,599
5,752,180,900
(349,947,277)
(446,920,865)
(576,244,068)
(726,458,705)
(1,922,429,087)
(2,598,987,823)
(2,934,353,785)
(3,897,580,701)
612,711,590
418,117,883
1,014,136,746
1,128,141,494
(57,480,494)
(87,270,665)
(99,513,638)
(117,473,675)
(122,081,499)
(113,669,101)
(163,539,3720
(224,608,092)
433,149597
217,478,117
751,083,736
786,059,727
(417,615,371)
(5,49,504,472)
(642,570,569)
953,649,098
(7,377,754)
(3,553,225)
(48,034,005)
534,000
118,000
930,500
1,325,050
(417,081,371)
(556,764,226)
(645,193,394)
(1,000,358,053)
(10,373,668)
461,688,600
(28,738,995)
334,990,264
(39,472,951)
(47,511,431)
(57,051,213)
(85,555,885)
(49,846,619)
414,177,169
(85,790,208)
249,434,379
(33,778,393)
74,891,060
20,100,134
35,136,053
82,035,371
48,256,978
123,148,038
143,248,172
48,256,978
123,148,038
143,248,172
178,384,225
Cash
flows
from
operating Activities:
Collection
customer and
income
from
other
2,185,812,587
Payment of VAT
(264,905,916)
Payment suppliers
(1,727,456,964)
Cash generated from

operation
193,449,707
Financing cost
(39,765,188)
Payment of Tax
(84,493,229)
Net
Cash
from
operating Activities
69,191,290
CASH FLOWS FROM

INVESTING
ACTIVITIES:
(224,799,510)
Purchase of property
Plant & equipment
Investment in shares
Sale
proceed
property & plant
of
Net Cash used in

CASH FLOW FROM
FINANCING
ACTIVITIES:
Medium term loan
Dividend paid
1,928,200
(222,871,310)
179,423,238
(33,160,404)
Net
Cash
From
146,262,834
Net Cash increase for

the year
(7,417,186)
Opening cash and cash

equivalents
89,452,557
Closing cash & cash

equivalent
82,035,371
54
From the above table it can be seen that, cash position of Renata Pharmaceuticals 2006 to 2010
has increasing. Among five years in 2007 closing cash and cash equivalent is lowest and rest of
the years cash position is continuously increasing and In the year 2010 closing cash and cash
equivalent is highest.
IBN SINA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
2006
2007
2008
2009
2010
576,180,783
792,942,685
1,051,888,172
1,277,602,341
534,746,999
(540,147,137)
(759,880,586)
(990,664,427)
(1,186,331,780)
(471,572,986)
(12,132,926)
(12,930,838)
(15,373,495)
(17,515,888)
(1,168,103)
(2,267,457)
(4,750,860)
(5,098,143)
22,737,467
18,085,626
41,161,523
69,262,092
(38,481,137)
(49,834,248)
(57,687,625)
(96,977,569)
Profit from Bank

deposits
(5,424,000)
(4,590,000)
2,762,444
4,006,827
2,949,000
Net Cash used in

Investing activity
(38,906,917)
(50,323,499)
(54,925,181)
(92,970,742)
(25,012,797)
Payment Dividend
(19,581,834)
(15,444,615)
(20,021,662)
(22,710,459)
Long term Finance

received from Bank
7,600,275
5,335,786
14,890,661
12,110,795
(16,493,943)
(7,742,983)
34,223,705
51,062,677
64,161,050
29,900,627
(120,696)
CASH
FLOW
FROM
OPERATING
ACTIVITIES:
Collection from
customer & other
Payment for cost,
expenses
Income Tax paid
Financial charges
Net Cash for
operating activitiy
(12,087,212)
(529,664)
50,562,537
CASH
FLOW
FROM
INVESTING
ACTIVITIES:
Purchase of Fixed
assets
(26,010,8290)
CASH FLOW FROM

FINANCING
ACTIVITIES:
Short term Finance

received from Bank
Net Cash Flow From
(24,116,230)
55
financing
22,520,075
38,580,249
60,821,435
19,099,344
Cash equivalents at
the opening
20,349,544
26,700,169
34,042,545
81,100,322
6,350,625
6,342,376
47,057,777
(4,609,306)
26,700,169
34,042,545
81,100,322
Increase in cash
Cash equivalents at
the closing
76,491,016
76,491,016
(2,484,489)
74,006,527
From the above table it can be seen that cash position of Ibn Sina in the 2006 to 2010 has been
continuously increasing. Among five years cash equivalent is fall down in 2006 and rise sharp
in 2008. In the year 2006 Ibn Sina Pharma cash position is not good, in 2007 it is increasing, in
2008 it is again increasing rise sharp, in 2009 it is again fall down and in 2010 also fall down.
BEXIMCO PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
2006
2007
2008
2009
2010
Cash
receipts
from customer
4,097,579,564
3,542,690,128
4,006,684717
4,710,870,128
6,810,510,631
Cash paid
suppliers
(2,714,775,105)
(2,947,335,836)
(2,840,612,734)
Cash generated
from operation
1,382,804,459
595,354,292
1,166,071,983
842,792,622
2,040,045,602
Interest paid
(229,719,450)
(214,066,707)
(248,370,850)
(508,432,384)
Income tax paid
(73,557,767)
Net
generated
operating
activity
1,079,527,242
Cash
flows
from operating
activities:
to
cash
from
(222,581,780)
(32,303,532)
340,468,980
(71,277,001)
880,728,275
(3,668,077,506)
(73,492,878)
520,928,894
(4,770,465,029)
(179,406,569)
1,352,206,649
Cash Flow From

Investing
Activities:
Acquisition
of
property, plant
Investment
shares
in
(1,083,478,873)
(10,000,000)
(460,904,187)
-
(1,180,445,241)
-
(1,148,198,910)
-
(2,595,098,749)
(46,545,634)
56
Sales of shares in
Bextex ltd.
Disposal
of
property, plant
Short
investment
15,294,792
9,730,325
450,467
197,500,000
61,600
1,928,598
term
Net cash used in

Investing
activities
13,350,073
3,553,600
1,640,596,296
(2500,000,000)
(1,077,733,614)
(1,180,383,641)
(449,245,2640)
(991,114,714)
(3,452,871,835)
Cash flows from

financing
activities:
Net
increase/decrease
long term borrow
Issuance
of
preference share
Net
increase/decrease
short term borrow
Dividend paid
Net
cash
generated
from
financing activitiy
Decrease/increase
in cash & cash
equivalent
Cash & cash
equivalent at the
opening
Cash & cash
equivalent at the
closing
(760,582,2170
(209,110,438)
(45,531,749)
17,258,054
70,386,381
81,757,500
240,805,788
4,100,000,000
554,083,900
(395,234,653)
(131,700,637)
188,634,698
(10,339,873)
(57,369,278)
(61,775,479)
150,742,087
(153,750,000)
(127,399,591)
287,604,184
(386,623,751)
152,535,715
51,922,927
3,916,728,787
(12,051,182)
(495,400,0350
428,563,230
413,014,862
984,785,846
85,698,910
581,098,945
581,098,945
1,058,433,574
73,647,728
73,647,728
85,698,910
1,471,448,436
1,058,433,574
From the above table it can seen that, cash position of Beximco Pharmaceuticals in the year
2006 to 2010 has been continuously increasing and decreasing. Among five years Cash and
cash equivalent at the end of the year has fall down in 2008 and highest rise sharp in 2009. In
the year 2006 Beximco Pharma cash position is very good, in 2007 it is fall down, in 2008 it is
again fall down, in 2009 it is rise sharp and in 2010 it is again fall down.
Growth Percentage Analysis:

57
Growth percentage is the amount of increase that a specific variable has gained within a
specific period and context. For investors, this typically represents the compounded annualized
rate of growth of a company's revenues, earnings, dividends and even macro concepts - such as
the economy as a whole.
Annualized growth rate of revenue expressed as a percentage, used in measuring performance
of a new firm with a little or no record of earnings. In a word growth is a percentage increase or
decrease in a particular subject between two time periods. (Investopedia.com 2010)
In this part three types of growth percentage have been discussed. They are the growth
percentage analysis of Number of employees, Net income and Earnings per share.
Growth of Net Income of Selected Pharma:

Growth pattern of Net Income of Selected Pharma have been shown below. The growth
percentage of net income is calculated by the formula .i.e. (Chowdhury & Ahmed 2009)
(Total Amount of Current Net Income Total Amount of previous Net Income) *100
Total Amount of previous Net Income
Table shows that the net income of selected Pharma has increased from the previous year
during 2006 to 2010. The highest growth rate is Beximco Pharma which is 68.33%. The lowest
growth rate is observed in Beximco Pharma which is -3.80%. It is also observed that growth
rate of different Pharma are not highly stable.
Name of the
Net Income (Thousand Taka)
Pharma
Square Pharma
Growth
Beximco
Pharma
Growth
Renata Pharma
Growth
IBN SINA
Growth
2006
2007
2008
2009
2010
1,165,865
-7.17%
1,303,243
11.78%
1,381,863
6.03%
1,890,053
36.78%
2,087,872
10.47%
470,659
353,068
545,341
624,740
1,051,649
-3.80%
242,132
25.74%
-24.98%
335,923
38.73%
54.46%
433,146
28.94%
14.56%
603,524
39.34%
68.33%
851,428
41.07%
32,761,931
20,539,597
43,285,209
49,233,664
21.13%
-37.31%
65.77%
13.74%
26,111,294
27.13%
Graphical Presentation of Growth of Net Income:
58
Grow th of Net Incom e

40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-10.00%
Growth of net income of Square Pharma Ltd. has been shown in the above figure. The growth
of net income is increases in 2007 from 2006. But it shows decreasing growth in the year 2008
and it increases again in 2009. Though the year 2006 it shows a negative growth rather the
growth is satisfactory in 2009 i.e. 36.78 %. So management of the Square Pharma Company
should try to keep this increasing growth.
80.00%
60.00%
40.00%
20.00%
0.00%
-20.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-40.00%
Growth of net income of Beximco Pharma Ltd. has been shown in the above figure. The
growth of net income is increases in 2008 from 2006. But it shows decreasing growth in the
year 2006&2007 and it increases again in 2009 & 2010. Though the year 2006 & 2007 it shows
a negative growth rather the growth is satisfactory in 2010 i.e. 68.33 %. So management of the
Beximco Pharma Company should try to keep this increasing growth.
59
Grow th of Net Income

45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
Growth of net income of Renata Pharma Ltd. has been shown in the above figure. The growth
of net income is increases in 2007 from 2006. But it shows decreasing growth in the year 2008
and it increases again in 2009 & 2010. The growth is satisfactory in 2010 i.e. 41.07 %. So
management of the Renata Pharma Company should try to keep this increasing growth.

80.00%
60.00%
40.00%
20.00%
0.00%
-20.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-40.00%
-60.00%
Growth of net income of Ibn Sina Pharma Ltd. has been shown in the above figure. The growth
of net income is increases in 2008 from 2009. But it shows decreasing growth in the year 2007,
2010. It shows negative growth in 2007 and it increases in 2009. The growth is satisfactory in
2009 i.e. 65.77 %. So management of the Ibn Sina Pharma Company should try to keep this
increasing growth.
Growth of EPS of Selected Pharma:

Growth pattern of Earning per share of Selected Pharma have been shown below. The growth
percentage of EPS calculated by the formula i.e. (Chowdhury & Ahmed 2009)
(Current Year EPS Previous Year EPS) *100
Previous Year EPS
It is observed from the table that the EPS of selected Pharma has increased from the previous
year during 2006 to 2010. The EPS growth rate is highest in Beximco Pharma in 2010 with
60
47.71%. The lowest growth rate is observed in Beximco Pharma in 2009 which is -3.05%.It is
also observed that growth rate of different Pharma are not highly stable.
Name of the
Pharma
Square Pharma
Growth
Beximco
Pharma
Growth
Renata Pharma
Growth
IBN SINA
Growth
Net Income (Thousand Taka)

2006
2007
2008
2009
2010
77.26
-63.32%
86.36
11.78%
91.57
6.03%
125.25
36.78%
138.36
10.47%
4.11
2.8
3.61
3.5
5.17
-35.37%
133.96
-44.12%
-31.87%
185.85
38.74%
28.93%
239.64
28.94%
-3.05%
333.90
39.33%
47.71%
471.06
41.07%
22.82
31.14
36.40
48.09
54.70
-37.31%
36.46%
16.89%
32.12%
13.75%
Graphical Presentation of Growth of EPS:

Grow th of EPS
60.00%
40.00%
20.00%
0.00%
-20.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-40.00%
-60.00%
-80.00%
Growth of EPS of Square Pharma Ltd. has been shown in the above figure. The growth of EPS
is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it
increases again in 2009. Though the year 2006 it shows a negative growth rather the growth is
satisfactory in 2009 i.e. 36.78%. So management of the Square Pharma Company should try to
keep this increasing growth.
61
Grow th of EPS
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-20.00%
-30.00%
-40.00%
Growth of EPS of Beximco Pharma Ltd. has been shown in the above figure. The growth of
EPS is increases in 2008 from 2006. But it shows decreasing growth in the year 2006, 2007 &
2009 and it increases again in 2010. Though the year 2006, 2007 & 2009 it shows a negative
growth rather the growth is satisfactory in 2010 i.e. 47.71% so management of the Beximco
Pharma company should try to keep this increasing growth.
Grow th of EPS
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-30.00%
-40.00%
-50.00%
Growth of EPS of Renata Pharma Ltd. has been shown in the above figure. The growth of EPS
is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it
increases again in 2009& 2010. Though the year 2006 it shows a negative growth rather the
growth is satisfactory in 2010 i.e. 41.07% so management of the Renata Pharma company
62
Grow th of EPS
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-20.00%
-30.00%
-40.00%
-50.00%
Growth of EPS of Ibn Sina Pharma Ltd. has been shown in the above figure. The growth of
EPS is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it
increases again in 2009& 2010. Though the year 2006 it shows a negative growth rather the
growth is satisfactory in 2010 i.e. 54.70% so management of the Ibn Sina Pharma company
63
CHAPTER 4: REPORT ENDING
64
Conclusion:
This analysis consisted of four mentioned pharmaceuticals company from an investors point of
view. The report concentrates on the financial aspects of the company that are of most
importance to the investors. Although many factors determine an investors preference to invest
in a company, most often than not they prefer to invest in companies that have an overall high
standard performance.
After analyzing all the ratios, we have found out the following information:
Liquidity Ratios: In the liquidity ratio we can see that both current ratio and quick ratio
improved over time marginally. The situation was almost stable.
Profitability Ratios: Net profit has steadily increased over the years and along with
consistent level of operating profit shows impressive reading for an investor. But these
advantages have been balanced by a slump in the return on assets and equity figures.
Although the decrease rate is very minimal still it is a problem for all four
Pharmaceuticals company and they need to try to improve these ratios.
Leverage Ratios: Debt ratio has improved over time and has remained pretty much
stable. SPL is mainly finance by equity, although proportion of debt is rising.
Market Value Ratios: The whole market was not so friendly for investment during
that year. Enhanced performance in subsequent year belies the faith of the markets
high valuation of SPLs stocks. But a sharp fall in the dividends and consequently
dividend yield columns is indeed alarming. This along with a decreasing trend of
earnings per share should occupy the managements time and resources in the
ensuing periods
Financial figures from the past five years show that at present Square
Pharmaceuticals have impressive financial records. Square Pharmaceuticals is one
of the most sought after company by investors due to their constantly improving
financial figures which they have been able to maintain over the years. It is true in
the financial year of 2007 their return did decline but they bounced back strongly in
subsequent period and maintained a satisfactory level of financial performance.
Therefore, we can conclude that Square Pharmaceuticals Ltd. is a good enough
company compare to other selected Pharmaceuticals company.
65
Recommendation:
Four mentioned Pharmaceuticals Company should be conscious about proper utilization of
assets. They should be conscious about profitability.
Four mentioned Pharmaceuticals Company should care about Net Profit margin which is not
good enough, which means that management would try to achieve close control over the
Pharmaceuticals company earnings at the cheapest sources of funding.
Four mentioned Pharmaceuticals Company should also give attention to ensure proper
utilization of assets which is the indicator of efficiency of the management.
Square Pharmaceuticals Limited should increase its product variety. Product variety represents
different types of items of medicines. At present, Square offers around 180 different types of
medicine. Some other companies are offering more than this. SPL can diversify itself from
others by operating in highly specialized segments such as anti cancer segments.
Introduction of new products to doctors is vital because it can enhance the image of the
company. It is always a good idea to find a gap to introduce a new item. Square can locate the
products areas where there are less number of alternatives and also higher amounts of
requirements.
Four mentioned Pharmaceuticals Company should provide more product samples gifts to the
doctors to increase their image among them.
Doctors should be informed previously that new medicines are coming up and will be offered
within two or three months. Thus the doctors can perceive an insight about the new medicines
as an alternative of competitor's existing items and Square pharma can gain good rapport with
the doctors.
SPLs distribution is quite weak. Steps must be taken to strengthen the distribution network.
This will require more effort on the part of the medical representatives.
Pharmaceutical direct-to-physician marketing efforts have typically been isolated from other
customer-centric activities, including those conducted by field sales forces. A dis-jointed
relationship exists between pharmaceutical sales teams and direct-to-physician marketing.
While the pharmaceutical industry has made significant investments in direct-to-physician
66
promotions, the sales force is generally uninformed about their timing or end results. SPL
should enhance their ability to link home office conducted marketing campaigns with field
force activities through information, software, and service solutions to make these efforts more
coordinated and therefore more effective.
Direct to consumer (DTC) essentially means any campaign or communication programme
intended for and targeted to consumers - the primary end users of a product. In relation to
pharmaceutical products, the consumers may be patients, friends or family members, caregivers
or the general public.
The strict regulations that have governed the communication of information about prescription
medicines in Bangladesh meant that the primary marketing focus has been on the people who
actually make prescribing decisions; the doctors.
These include the impact of communication to consumers via the internet, patient education,
word of mouth or use of editorial space or air time in print and broadcast media.
More than ever before patients are getting involved in making their own healthcare decisions.
The growth in over-the-counter drugs and the dissemination of information on the World Wide
Web and in consumer magazines have all contributed to a thirst for information. Four
mentioned Pharmaceutical Company can make an advantage of this and bring about some
changes to fulfill these needs and as result it will enhance the image of the company.
Direct to consumer (DTC) advertising is thought to enhance competition between brands,
which can lead to improved quality and lower prices for consumers but, most importantly, it
can improve public health.
67
APPENDIX
68
INCOME STATEMENT OF BEXIMCO PHARMACEUTICALS LTD:

2006
2007
2008
2009
2010
Net Sales Revenue
3,702,317,159
3,597,024,812
4,010,167,059
4,868,254,915
6,490,847,353
COSTS OF GOODS SOLD
(1,971,231,333) (1,967,509,975) (2,002,871,181)
(2,566,206,626) (3,317,640,254)
GROSS PROFIT
1,731,085,826
1,629,514,837
2,007,295,878
2,302,048,289
(984,562,332)
(974,736,690)
(1,008,501,030) (1,300,765,878) (1,537,426,907)
(834,276,355)
(829,191,989)
(855,036,787)
(1,085,573,331) (1,304,012,927)
(150,285,977)
(145,544,701)
(153,464,243)
(215,192,547)
(233,413,980)
746,523,494
654,778,147
998,794,848
1,001,282,411
1,635,780,192
56,201,142
19,625,795
686,510
198,986,379
456,011,134
(253,318,784)
(254,742,392)
(249,654,298)
(289,427,992)
(662,182,384)
549,405,852
(419,661,550)
749,827,060
910,840,798
1,429,608,942
(26,162,183)
(19,983,883)
(35,706,050)
(43,373,371)
(68,076,616)
Income tax Income
523,243,669
399,677,667
714,121,010
867,467,427
1,361,532,326
Current Tax
(52,585,106)
(46,609,789)
(168,779,737)
(242,727,120)
(309,883,518)
Deferred tax Income
(35,402,549)
(57,661,278)
(173,720,430)
(71,085,835)
NET PROFIT AFTER TAX
(17,182,557)
11,051,489
4,940,693
(242,727,120)
(238,797,683)
470,658,563
353,067,878
545,341,273
624,740,307
1,051,648,808
Operating Expenses:
Other income
Finance cost
Net
Profit
Before
Contribution to WPPF
3,173,207,099
Contribution to workers
Profit Participation
PROFIT BEFORE TAX
69
INCOME STATEMENT OF SQUARE PHARMACEUTICALS LTD:
Gross Turnover
Less: Value Added Tax
NET TURNOVER
COSTS
SOLD
OF
GOODS
2006
2007
2008
2009
2010
7,085,553,149
8,711,034,758
9,565,715,902
11,366,597,928
13,279,141,757
995,647,753
6,089,905,396
1,210,223,409
7,500,811,349
1,307,872,163
1,545,801,360
1,816,563,347
8,257,843,739
9,820,796,568
11,462,578,410
(3,525,402,669) (4,268,447,662) (4,856,061,933) (5,672,565,973) (6,561,288,485)

3,401,781,806
4,148,230,595
4,901,289,925
2,564,502,727
3,232,363,687
(798,131,173)
(1,000,132,914) (1,220,979,268) (1,319,362,317) (1,687,210,447)
(186,167,019)
(984,298,192)
(406,478,534)
(1,406,611,448
)
GROSS PROFIT
Operating Expenses:
Total Operating Exp.

Other income
1,580,204,535
169,353,845
Financial Expenses
(139,863,636)
NET PROFIT BEFORE

WPPF
1,609,694,744
Allocation for WPPF
(76,652,130)
(236,845,084)
(460,431,051)
(524,460,492)
(1,692,475,988) (1,779,793,368) (2,211,670,939)

1,709,305,818
2,368,437,227
2,689,618,986
604,628,504
665,520,915
585,564,826
(351,868,423)
(397,135,963)
(308,861,107)
1,962,065,899
2,636,822,179
2,966,322,705
(93,431,709)
(125,562,961)
(141,253,462)
1,868,634,190
2,511,259,218
2,825,069,243
(409,660,827)
(592,644,226)
(688,499,602)
1,381,863,093
1,890,052,929
2,087,871,791
1,809,051,523
(86,145,311)
NET PROFIT BEFORE

TAX
1,533,042,614
Provision for income tax
(333,310,560)
NET PROFIT AFTER

TAX
1,825,752,239
220,144,368
(471,496,720)
1,722,906,212
(347,984,083)
1,165,864,616
1,303,242,840
INCOME STATEMENT OF IBN SINA PHARMACEUTICALS LTD:

70
2006
2007
2008
2009
534,738,092
577,427,115
791,683,415
1,052,301,721 1,277,868,846
Less: Cost of Goods 345,464,844

Sold
367,925,503
506,490,350
652,854,439
785,469,076
GROSS PROFIT
189,273,248
209,501,612
285,193,065
399,454,282
492,399,770
Operating 145,573,190
183,793,323
263,115,026
346,729,133
436,859,745
25,708,289
32,078,039
52,725,149
55,540,025
529,664
1,168,103
2,267,457
4,750,860
5,098,143
43,170,394
24,540,186
29,810,582
47,974,289
50,441,882
3,952,932
5,003,070
6,333,671
8,907,577
13,736,889
2,243,968
1,406,822
1,854,483
2,708,660
3,056,132
44,879,358
28,136,434
34,289,670
54,173,206
61,122,639
12,117,427
7,596,837
8,178,376
10,887,997
11,888,975
20,539,597
26,111,294
43,285,209
49,233,664
SALES
Less:
Expenses
OPERATING PROFIT 43,700,058

Less:
Charges
2010
Financial
Add: Non Operating

income
Less: Workers P.P
Fund & welfare fund
NET
PROFIT
BEFORE TAX
Less: Provision
Income Tax
for
NET PROFIT AFTER

32,761,931
TAX
INCOME STATEMENT OF RENATA PHARMACEUTICALS LTD:

71
2006
2007
2008
2009
2010
3,089,746,417
3,900,732,314
5,090,318,113
TURNOVER
1,927,731,885 2,534,174,981
Cost of Sales
(978,390,209)
(1,298,911,334) (1,526,514,685) (1,820,496,777) (2,405,361,976)
GROSS
PROFIT
949,341,676
1,235,263,647
1,563,231,732
2,080,235,537
2,684,956,137
32,868,293
11,734,434
15,420,344
8,050,515
5,992,117
982,209,969
1,246,998,081
1,578,652,076
2,088,286,052
2,690,948,254
(577,785,557)
(696,781,6730
(845,169,923)
(1,118,768,795) (1,378,630,620)
404,424,412
550,216,408
733,382,153
969,517,257
1,312,317,634
496,800
118,000
930,500
593,908
(39,765,188)
(57,480,494)
(87,270,665)
(99,513,638)
(117,473,675)
Other
Expenses
(2,634,492)
(3,272,447)
(5,913,520)
(6,752,520)
(9,354,136)
Contribution
to WPPF
(16,731,165)
(23,341,441)
(30,496,000)
(41,151,504)
(56,480,177)
466,618,826
609,919,968
823,030,095
1,129,603,554
(121,815,058)
(166,444,936)
(190,711,707)
(235,480,759)
(6,858,002)
(8,880,661)
(10,329,228)
(28,793,936)
(42,694,263)
242,131,637
335,923,107
433,145,804
603,524,452
851,428,532
Other income
Operating
Exp.
Admin Selling
Expenses:
OPERATING
PROFIT
Gain
on
disposal
of 1,928,200
Property,
equipment
Interest
overdraft
on
NET PROFIT
347,221,767
BEFORE
TAX
(98,232,128)
Current Tax
Deferred Tax
NET
PROFIT
AFTER
TAX

BALANCE SHEET & SHAREHOLDERS EQUITY STATEMENTS
72
2006
2007
5,267,302,357
6,804,429,292
2008
2009
2010
8,291,290,984
9,407,730,001
10,255,189,084
4,088,432,171
4,899,679,832
5,630,791,822
ASSETS:
Non-current Assets:
Property,
carrying value
Capital
progress
Plant
2,273,761,161
work
in
3,531,003,509
1,077,707,832
481,239,419
591,114,649
634,347,093
Investment long term
1,915,833,364
2,792,186,364
3,611,744,164
4,508,050,169
3,990,050,169
CURRENT ASSETS
4,031,684,955
3,682,510,712
1,544,191,798
4,411,836,436
2,026,736,322
3,843,512,855
2,098,755,231
4,774,311,194
2,207,078,082
322,864,637
236,455,395
360,245,646
288,806,440
477,562,002
260,330,162
508,249,174
358,250,076
20,250,000
20,250,000
221,269,226
1,510,502,334
693,157,720
1,220,736,941
Inventories
Advances, Deposits
1,342,364,478
288,732,137
166,492,706
Investment
in
marketable securities
20,250,000
20,250,000
1,897,124,652
1,418,893,703
316,720,982
139,855,179
205,295,694
293,457,740
258,727,695
9,298,987,312
10,486,940,004
12,703,127,420
13,251,242,856
15,029,500,278
8,417,040,705
894,240,000
9,949,397,634
1,207,224,000
11,554,379,825
1,509,030,000
2,035,465,000
105,878,200
2,035,465,000
105,878,200
2,035,465,000
105,878,200
1,101,935,237
4,279,522,268
1,101,935,237
5,498,895,197
1,101,935,237
6,802,071,388
Trade debtors
Short term loan

Cash
and
equivalents
cash
TOTAL ASSETS
LIABILITIES
&SHAREHOLDERS
EQUITY:
Shareholders Equity
Share Capital
Share Premium
6,402,014,772
496,800,000
7,333,257,612
596,160,000
2,035,465,000
105,878,200
2,035,465,000
105,878,200
947,678,690
2,816,192,882
1,101,935,237
3,493,819,175
NON-CURRENT
LIABILITIES:
636,217,059
598,116,106
785,241,612
660,976,668
1,258,376,052
Long term loans
602,349,621
492,569,379
602,584,615
449,757,608
1,032,633,110
Deferred tax liability
33,867,438
105,546,727
182,656,997
211,219,060
225,742,942
CURRENT
LIABILITIES:
2,260,755,481
2,555,566,286
3,500,845,103
2,640,868,554
2,216,744,401
1,471,158,187
1,818,777,878
2,699,693,184
1,534,345,782
736,443,848
261,416,941
79,390,166
225,176,449
60,601,743
297,002,646
100,953,258
295,590,601
124,222,699
462,090,211
394,715,915
49,771,374
24,565,248
32,290,235
69,573,702
56,463,570
General Reserve
Tax Holiday Reserve
Retained Earnings
Long term loans

Trade creditors
Liabilities for expenses
Liabilities
for
other
73
finance
TOTAL
SHAREHOLDERS
EQUITY
AND
LIABILITY
426,444,968
399,018,813
9,298,987,312
617,135,770
567,030,857
13,251,242,856
15,029,500,278
400,905,780
10,486,940,004
12,730,127,420

2006
2007
2008
2009
2010
11,957,773,78
7
12,975,195,529 15,180,731,678
ASSETS:
Non
Asset
current
Property,
plant
Investment in
shares
8,555,119,221 9,029,643,482
8,513,136,38
1
41,982,840
Current Assets
Inventories
Accounts
receivable
Loans,
advances and
Deposits
Cash&Cash
equivalents
TOTAL
ASSSETS
Shareholders
Equity
Issued
capital
share
Share
premium
Excess
of
issue price
3,357,393,266
1,754,440,28
8
8,992,942,392
36,701,090
12,966,587,178 15,123,306,298
11,921,072,697
2,923,775,458
1,652,480,291
499,680,792
2,861,891,654
1,505,288,093
685,915,465
85,698,910
7,949,920,425
1,040,973,120
1,489,750,000
6,916,737,893
6,191,667,831
1,722,953,284
1,983,809,444
694,111,730
821,356,439
699,204,450
779,129,620
544,509,106
1,058,433,574
1,471,448,436
73,647,728
581,098,945
11,912,512,487
6,298,526
503,916,401
430,240,095
591,613,938
2881,826
36,701,090
11,953,418,94
0
19,891,933,422 21,372,399,509
14,819,665,44
1
8,250,939,647
1,145,070,430
1,489,750,000
1,689,636,958
10,450,202,14
5
1,259,577,470
1,489,750,000
10,885,706,61
4
1,511,492,960
15,974,086,451
2,098,065,090
5,269,474,690
1,489,750,000
1,689,636,958
1,689,636,958
Capital
74
Reserve
1,689,636,958
Tax holiday
reserve
294,950,950
294,950,950
Retained
Earnings
Long
term
borrowings
Liability
gratuity
WPPF
for
&
Deferred
liability
tax
394,834,828
294,950,950
3,189,176,356
3,039,774,569
1,435,171,264
Provisions:
2,074,506,357
1,776,449,778
1,767,431,029
Creditors and
other payable
Accrued
Expenses
246,704,610
51,351,969
352,416,487
907,582,327
1,302,816,980
1,451,326,354
432,315,660
409,898,122
263,176,822
3,285,324
90,512,178
79,094,905
81,776,450
70,584,481
144,077,359
11,953,418,94
0
1,507,899
1,727,724
3,169,568
41,633,930
11,912,512,487
1,639,961,052
1,461,666,227
13,012,146
16,276,184
2,513,157,232
2,321,451,642
60,052,739
Total
Liabilities &
Shareholders
equity:
647,119,301
2,602,032,267
365,255,938
tax
335,885,792
46,411,276
2,527,420,798
117,936,620
1,924,933,065
274,419,253
62,403,458
1,902,150,733
307,425,614
271,814,118
Dividend
Payable
2,885,155,826
1,446,600,500
1,159,409,947
5,087,312,943
4,282,514,032
6,684,775,166
1,627,972,936
Short
term
borrowing
4,005,112,020
213,357,859
Current
liabilities &
294.950,950
294,950,950
442,354,953
Non Current
Liability:
Income
payable
1,689,636,958
21,372,399,509
19,891,933,422
14,819,665,44
1
75

2006
2007
NON CURRENT
ASSETS
159,923,617
184,714,495
Property, plant &

equipment
18,302,290
23,726,290
Investment
2008
2009
2010
248,082,520
293,523,518
379,036,527
218,555,330
257,913,228
332,846,136
29,527,290
35,610,290
ASSTS:
Deferred
Asset
Tax
CURRENT
ASSETS:
Inventories
Sundry Debtors
Advances,
Deposits
prepayments
Cash
&
equivalents
&
cash
TOTAL ASSETS
Shareholders
Equity:
Share capital
Tax
reserve
holiday
Retained Earning
Deferred Liability
Deferred
Liability
127,775,501
149,908,877
220,130,579
225,056,867
51,549,217
52,142,698
58,473,330
60,035,472
62,231,701
190,126
1,436,458
177,188
597,737
864,243
40,398,517
47,496,176
57,215,814
78,397,048
85,469,907
20,349,544
26,700,169
34,042,545
81,100,322
76,491,016
159,972,192
159,972,192
169,212,064
161,611,789
397,991,497
513,654,097
166,091,361
188,676,570
604,093,394
215,410,234
90,000,000
90,000,000
90,000,000
90,000,000
90,000,000
69,972,192
71,611,789
4,392,110
4,392,110
71,899,251
94,284,460
40,270,273
60,324,124
12,936,061
27,826,722
24,042,490
31,542,490
3,291,722
954,912
191,629,863
264,653,403
102,884,973
169,591,739
186,608,862
6,534,281
8,041,381
8,478,381
14,840,930
14,232,048
tax
7600,275
-
167,004,222
CURRENT
LIABIITIES:
130,741,119
61,260,632
Short term Finance
27,036,927
Deposits
5,685,066
15,774,554
Creditors
1,455,601
112,487,404
NON CURRENT
LIABILITIES:
Long term Finance
44,734,790
6,112,681
15,055,704
22,738,848
4,392,110
121,018,124
80,245,507
39,937,517
40,307,990
308,437,653
19,209,29
76
Accrued Expenses
Other Finance
Provision
Income Tax
for
Income
Liability
tax
16,875,043
20,817,331
15,971,179
16,976,210
22,937,534
19,814,414
22,119,026
23,753,600
26,223,324
25,811,246
18,206,564
22,696,081
397,991,497
513,654,097
26,655,115
TOTAL
SHAREHOLDER
EQUITY
&
LIABILITIES
159,972,192
169,212,064
25,616,177
604,093,394

2006
2007
2008
2009
2010
689,066,469
796,846,754
1,014,435,834
1,396,300,867
2,564,572,288
44,121,037
305,983,441
570,277,998
736,960,533
363,998,451
63,070,376
63,070,376
63,070,376
63,070,376
63,070,376
1,000,000
1,000,000
8,377,754
11,931,079
58,965,084
797,257,882
1,166,900,571
1,656,161,962
2,208,262,855
3,050,606,199
638,784,952
662,012,145
959,414,590
1,075,310,581
1,295,855,164
198,626,085
194,727,875
344,226,933
343,870,341
478,364,475
&
59,808,451
83,095,822
79,281,411
80,677,337
110,721,962
Cash & Cash

equivalents
82,035,371
48,256,978
123,148,038
143,248,172
178,384,225
ASSETS:
Non-current
Assets:
Property, plant &
equipment
Capital work in
progress
Investment
subsidiary
in
Other investment
Total
noncurrent Assets
CURRENT
ASSETS:
Inventories
Trade & other
receivables
Advances,
Deposits
Prepayments
Total
Current
77
Assets
Total Assets
979,254,859
988,092,820
1,506,070,972
1,643,106,431
2,063,325,826
EQUITY
&
LIABILITIES:
1,776,512,741
2,154,993,391
3,162,232,934
3,851,369,286
5,113,932,025
80,332,400
96,398,900
115,678,700
144,598,400
180,748,000
156,018,160
155,553,964
155,075,461
154,596,958
154,118,455
47,451,353
46,862,514
52,862,514
83,346,636
124,166,310
698,510,882
978,790,128
1,338,456,682
1,824,737,962
2,512,438,179
982,312,795
1,277,505,506
1,662,073,357
2,207,279,956
2,971,470,944
72,656,492
88,948,500
105,224,160
124,183,595
138,540,457
62,661,763
71,370,735
81,542,581
110,179,135
152,716,016
135,318,255
160,319,235
186,766,741
234,362,730
291,256,473
371,848,683
361,475,015
823,163,615
794,424,620
1,129,414,884
Accrued expenses
51,607,325
37,929,106
127,107,689
27,896,925
31,752,362
Other payables
71,050,788
98,063,196
133,013,604
171,928,847
220,862,988
68,360,467
123,160,097
79,902,838
237,310,646
278,932,990
94,222,229
93,955,788
147,031,623
174,203,958
185,076,625
658,881,691
717,068,650
1,313,392,836
1,409,726,600
1,851,204,608
1,776,512,741
2,154,993,391
3,162,232,934
3,851,369,286
5,113,932,025
Share Capital
Revaluation
Surplus
Tax
Reserve
holiday
Retained earnings
Total
equity
attributable
to
equity holders
Non-Current
Liabilities:
Deferred Liability
Deferred
liabilities
tax
Total Non-current
liabilities
Current
Liabilities:
Bank overdraft
Creditors goods
Provision
taxation
for
Total
current
liabilities
Total equity &
Liabilities
78
SQUARE PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
2006
2007
2008
2009
2010
8,231,097,525
9,706,402,257
11,401,786,553
449,727,661
466,326,850
448,178,202
8,,680,825,186
10,172,729,107
11,849,964,755
4,434,614,344
4,595,248,761
4,993,049,492
1,777,607,737,
2,075,086,488
2,152,581,352
2,942,764,932
Cash Flows from
Operating
Activities
RECEIPTS:
Collection from sales
Others
PAYMENTS:
6,075,711,742
10,517,860
6,086,229,602
7,455,061,355
95,827,359
7,550,888,714
Purchase of raw &

Packaging materials
3,093,893,074
Manufacturing Exp.
1,333,348,859
Bank interest
139,863,636
236,845,084
351,868,423
397,135,963
308,861,107
Income tax
284,812,892
343,650,860
458,227,366
475,997,448
855,888,639
Workers profit fund
43,530024
52,779,178
58,051,027
60,192,28
82,353,560
Others
1,625902
1,325,262
2,148,834
3,666,917
3,529,132
4,897,074,387
6,101,020,591
7,379,996,482
7,684,822,669
9,186,446,862
4,897,074,387
1,449,868,123
1,300,828,704
2,487,906,428
2,663,517,893
(1,106,201,471)
(877,960,724)
(1,464,938,454)
8,985,055
(500,000,000)
8,806250
12,475,331
(3,157,800)
(500,000,000)
Net cash provided by

Operating Expenses
3,688,812,470,
CASH FLOW FROM

INVESTING
ACTIVITIES:
Purchase Fixed Asset
Disposal Fixed Asset
Pre-operating cost
(253,126,399)
Textiles Ltd
5,362,331
Knit Fabrics Ltd
Fashions Ltd
3,972,492
(500,000,000)
100,000,000
(280,000,000)
(392,000,000)
(316,400,000)
92,000,000
(100,000,000)
(198,000,000)
(150,000,000)
48,000,000
400,000,000
(18,100,000)
(109,875,230)
(249,000,000)
418,000,000
220,000,000
Hospitals Ltd.
Informatix Ltd.
(782,151,851)
Capital work inprogress
(1,229,428,470)
(233,668,370)
79
Interest received
123,100,425
88,000,686
(634,347,093)
Dividend received
35,000,165
36,425,250
112,595,980
89,551,011
69,421,514
Net Cash used in

(1,089,091,048)
1,895,521,793
(1,873,856,298)
(1,569,806,551)
(1,639,252,295)
414,288,000
151,162,607
1,091,897,800
(237,046,566)
(305,401,660)
(342,522,688)
850,915,306
(1,135,347,402)
(797,901,934)
CASH
FLOWS
FROM FINANCING
ACTIVITIES:
Long
term
received
loan
Long
repaid
loan
term
Short
term
loan
decrease/(increase)
787,604,783
(323,915,587)
100,895,979
150,000,000
(334,462,773)
347,619,691
(397,361,793)
478,230,949
(91,608,631)
817,344,614
(527,579,221)
(332,640,000)
(372,000,000)
(298,080,000
(357,696,000)
(482,489,600)
(165,416,618)
268,787,867
638,468,109
(829,337,841)
(1,058,995,643)
Cash
and
Cash
Equivalent at the
opening
(65,353351)
(176,865,803)
65,440,515
88,162,046
(34,730,045)
Cash
and
Cash
Equivalent at the
closing
382,074,333
139,855,179
205,295,694
293,457,740
205,295,694
293,457,740
258,727,695
2007
2008
2009
2010
2,885,087,954
3,464,026,571
4,524,734,599
5,752,180,900
(349,947,277)
(446,920,865)
(576,244,068)
(726,458,705)
(1,922,429,087)
(2,598,987,823)
(2,934,353,785)
(3,897,580,701)
612,711,590
418,117,883
1,014,136,746
1,128,141,494
(57,480,494)
(87,270,665)
(99,513,638)
(117,473,675)
(122,081,499)
(113,669,101)
(163,539,3720
(224,608,092)

increase
Dividend paid
Net Cash Provided by
Decrease in cash and
cash Equivalent
316,720,982
316,720,982
139,855,179
RENATA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
2006
Cash
flows
from
operating Activities:
Collection
customer and
income
from
other
2,185,812,587
Payment of VAT
(264,905,916)
Payment suppliers
(1,727,456,964)
Cash generated from

operation
193,449,707
Financing cost
(39,765,188)
80
Payment of Tax
(84,493,229)
Net
Cash
from
operating Activities
69,191,290
CASH
FLOWS
FROM INVESTING
ACTIVITIES:
217,478,117
751,083,736
786,059,727
(417,615,371)
(5,49,504,472)
(642,570,569)
953,649,098
(7,377,754)
(3,553,225)
(48,034,005)
534,000
118,000
930,500
1,325,050
(417,081,371)
(556,764,226)
(645,193,394)
(1,000,358,053)
(10,373,668)
461,688,600
(28,738,995)
334,990,264
(224,799,510)
Purchase of property
Plant & equipment
Investment in shares
Sale
proceed
property & plant
433,149597
of
Net Cash used in

1,928,200
(222,871,310)
CASH FLOW FROM

FINANCING
ACTIVITIES:
Medium term loan
179,423,238
(39,472,951)
(47,511,431)
(57,051,213)
(85,555,885)
Dividend paid
(33,160,404)
(49,846,619)
414,177,169
(85,790,208)
249,434,379
Net
Cash
From
146,262,834
(33,778,393)
74,891,060
20,100,134
35,136,053
Net Cash increase for

the year
(7,417,186)
82,035,371
48,256,978
123,148,038
143,248,172
Opening cash and cash

equivalents
89,452,557
Closing cash & cash

equivalent
48,256,978
123,148,038
143,248,172
178,384,225
82,035,371
IBN SINA PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
2006
2007
2008
2009
2010
576,180,783
792,942,685
1,051,888,172
1,277,602,341
534,746,999
(540,147,137)
(759,880,586)
(990,664,427)
(1,186,331,780)
(471,572,986)
(12,132,926)
(12,930,838)
(15,373,495)
(17,515,888)
(1,168,103)
(2,267,457)
(4,750,860)
(5,098,143)
CASH
FLOW
FROM
OPERATING
ACTIVITIES:
Collection from
customer & other
Payment for cost,
expenses
Income Tax paid
Financial charges
Net
Cash
(12,087,212)
(529,664)
for
81
operating activitiy
22,737,467
18,085,626
41,161,523
69,262,092
50,562,537
(38,481,137)
(49,834,248)
(57,687,625)
(96,977,569)
(26,010,8290)
(5,424,000)
(4,590,000)
2,762,444
4,006,827
2,949,000
(38,906,917)
(50,323,499)
(54,925,181)
(92,970,742)
(25,012,797)
(19,581,834)
(15,444,615)
(20,021,662)
(22,710,459)
(16,493,943)
7,600,275
5,335,786
14,890,661
12,110,795
(7,742,983)
34,223,705
51,062,677
64,161,050
29,900,627
(120,696)
22,520,075
38,580,249
60,821,435
19,099,344
(24,116,230)
20,349,544
26,700,169
34,042,545
81,100,322
6,350,625
6,342,376
47,057,777
(4,609,306)
26,700,169
34,042,545
81,100,322
CASH
FLOW
FROM
INVESTING
ACTIVITIES:
Purchase of Fixed
assets
Profit from Bank
deposits
Net Cash used in
Investing activity
CASH FLOW FROM

FINANCING
ACTIVITIES:
Payment Dividend
Long term Finance
received from Bank
Short term Finance
received from Bank
Net Cash Flow From
financing
Cash equivalents at
the opening
Increase in cash
Cash equivalents at
the closing
76,491,016
76,491,016
(2,484,489)
74,006,527
82
BEXIMCO PHARMACEUTICALS Ltd.

CASH FLOW STATEMENT
2006
2007
2008
2009
2010
Cash
receipts
from customer
4,097,579,564
3,542,690,128
4,006,684717
4,710,870,128
6,810,510,631
Cash paid
suppliers
(2,714,775,105)
(2,947,335,836)
(2,840,612,734)
Cash generated
from operation
1,382,804,459
1,166,071,983
842,792,622
2,040,045,602
Interest paid
(229,719,450)
595,354,292
(222,581,780)
(214,066,707)
(248,370,850)
(508,432,384)
Income tax paid
(73,557,767)
(32,303,532)
(71,277,001)
Net
generated
operating
activity
1,079,527,242
Cash
flows
from operating
activities:
to
cash
from
340,468,980
880,728,275
(3,668,077,506)
(73,492,878)
520,928,894
(4,770,465,029)
(179,406,569)
1,352,206,649
Cash Flow From

Investing
Activities:
Acquisition
of
property, plant
(1,083,478,873)
(460,904,187)
(1,180,445,241)
(10,000,000)
Sales of shares in
Bextex ltd.
15,294,792
9,730,325
Disposal
of
property, plant
450,467
1,928,598
Investment
shares
Short
investment
in
term
Net cash used in

Investing
activities
(1,148,198,910)
-
(2,595,098,749)
(46,545,634)
197,500,000
13,350,073
3,553,600
1,640,596,296
61,600
(2500,000,000)
(1,077,733,614)
(449,245,2640)
(1,180,383,641)
(3,452,871,835)
(991,114,714)
Net
increase/decrease
long term borrow
(760,582,2170
70,386,381
(209,110,438)
(45,531,749)
17,258,054
Issuance of
81,757,500
Cash flows from

financing
activities:
preference share
4,100,000,000
83
Net
increase/decrease
short term borrow
Net
cash
generated
from
financing activitiy
Decrease/increase
in cash & cash
equivalent
Cash & cash
equivalent at the
opening
Cash & cash
equivalent at the
closing
240,805,788
(395,234,653)
554,083,900
(10,339,873)
188,634,698
(131,700,637)
(61,775,479)
(57,369,278)
(127,399,591)
(153,750,000)
150,742,087
(386,623,751)
287,604,184
3,916,728,787
51,922,927
152,535,715
(495,400,0350
(12,051,182)
984,785,846
413,014,862
428,563,230
581,098,945
581,098,945
85,698,910
85,698,910
73,647,728
73,647,728
1,058,433,574
1,058,433,574
1,471,448,436
84
References:
Brigham E. F. & Ehrhardt .M .C (2004). Financial Management Theory & Practice, 10th
Edition, Thomson South Western, pp.75-98.
Chowdhury, T A and Ahmed, K (2009). Performance Evaluation of Selected Pharmaceuticals
company in Bangladesh, International Journal of Business and Management, Vol.4 No-4,
April, pp.86-97
Mansur, I., Zangeneh, H., & Zitz, M. S. H. (1993). The Association of Pharmaceuticals
company performance ratios and market determined measures of risk. Applied Economics,
Vol. 25, pp. 1503-1510.
Seiford, L. M., & Zhu, J. (1999). Profitability and Marketability of the Top Pharmaceuticals
company in Bangladesh. Management Science, 45(9), 1270-1288
Ray H. Garrison, Eric W. Nooren, Peter C. Brewer (2002). Managerial accounting 9 th Edition,
pp. 137-152
Siddique, S. H., and Islam, A. F. M. M. (2001). Pharmaceuticals Sector in Bangladesh: Its
Contribution and Performance. Journal of Business Research, Jahangirnagar University, Vol.
3.
www.square pharma.com.bd
www.renata pharma.com.bd
www.beximco pharma.com.bd
www.ibn sina pharma.com.bd
http://www.google.com/
http://www.answers.com/
Investopedia.com
Annual report of Square Pharma (2006-2007)
Annual report of Beximco Pharma(2006-2007)
Annual report of Beximco Pharma (2007-2008)
85
Annual report of Renata pharma (2006-2007)

Annual report of Renata Pharma (2007-2008)
Annual report of Renata Pharma (2008-2009)
Annual report of Renata Pharama (2009-2010)
Annual report of Ibn Sina Pharma (2006-2007)
86

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FINANCIAL PERFORMANCE ANALYSIS OF FOUR

SELECTED PHARMACEUTICALS COMPANY IN

Origin of the report:

Objective of the report:

Scope of the report:

Limitation of the report:

Methodology of the study:

Secondary Sources of data collection:

Final Report Preparation:

CHAPTER 2: AN OVERVIEW OF THE PHARMACEUTICALS

OVERVIEW OF SQUARE PHARMACEUTICALS

Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it

OVERVIEW OF BEXIMCO PHARMACEUTICALS LIMITED:

OVERVIEW OF RENATA PHARMACEUTICALS LIMITED:

OVERVIEW OF IBN SINA PHARMACEUTICALS LIMITED:

Significant Recent Event of the Industry:

CHAPTER 3: RATIO ANALYSIS

FINANCIAL RATIOS FOR SQUARE PHARMACEUTICALS:

Current Asset Inventory

Net Profit Margin=

Net Profit Margin Ratio

Payout Ratio = Dividend per Share/ Earnings per Share

Pay out Ratio

Total Debt Ratio

Asset To Equity Ratio=Total Asset/Owners' Equity

Asset To Equity Ratio

Market price per

Earnings per share

Market Price per share / Earnings per share

Price Earning Ratio

Dividend yield on common stock=

Market price per

Dividend per share/ Market price per share

FINANCIAL RATIOS FOR BEXIMCO PHARMA:

Current Asset Inventory

Net Profit Margin=

Net Profit Margin Ratio

Total Debt Ratio

Asset To Equity Ratio=Total Asset/Owners' Equity

Asset To Equity Ratio

Price earnings ratio=

Market price per

Earnings per share

Market Price per share / Earnings per share

Price Earning Ratio

Dividend yield on common stock=

Market price per

Dividend per share/ Market price per share

FINANCIAL RATIOS FOR RENATA PHARMA

Current Asset Inventory

Net Profit Margin=

Net Profit Margin Ratio

Total Debt Ratio

6. ASSET TO EQUITY RATIO

Asset To Equity Ratio=Total Asset/Owners' Equity

Asset To Equity Ratio

Price earnings ratio=

Market price per

Earnings per share

Market Price per share / Earnings per share

Price Earning Ratio

Dividend yield on common stock=

Market price per