Study tour Headline Animator
Credit Analysis:
The division of the bank responsible for analyzing and making recommendations on the fate of the most loan applications is the credit department. This department should satisfactory answer three major questions regarding each loan application:
Is the borrower creditworthy?
Can the loan agreement be properly structured and documented?
Can the bank perfect its claim against the assets or earnings of the customer so that, in the event of default, bank funds can be recovered rapidly at low cost and with low risk?
3.3 Written loan Policy:
One of the most important ways a bank can make sure its loans meet regulatory standards and are profitable is to establish a written loan policy. It should contain:
Ø A goal statement for the bank’s loan portfolio.
Ø Specification of the lending authority given to each loan officer and loan committee.
Ø Lines of responsibility in making assignments and reporting information within the local loan department.
Ø Operating procedures for soliciting, reviewing, evaluating, and making decision on customer loan application.
Ø The required documentation that is to accompany each loan application and what must be kept in the bank’s credit files.
Ø Lines of authority within the bank, detailing who is responsible for maintaining and reviewing g the bank’s credit files.
Ø Guidelines for taking, evaluating, and perfecting loan collateral.
Ø A statement of quality standards applicable to all loans.
Ø A statement of the preferred upper limit for total loans outstanding.
Ø A description of the bank’s principal trade area, from which most loans should come.
Ø A discussion of the preferred procedures for detecting, analyzing, and working out problem loan situations.
The division of the bank responsible for analyzing and making recommendations on the fate of the most loan applications is the credit department. This department should satisfactory answer three major questions regarding each loan application:
Is the borrower creditworthy?
Can the loan agreement be properly structured and documented?
Can the bank perfect its claim against the assets or earnings of the customer so that, in the event of default, bank funds can be recovered rapidly at low cost and with low risk?
3.3 Written loan Policy:
One of the most important ways a bank can make sure its loans meet regulatory standards and are profitable is to establish a written loan policy. It should contain:
Ø A goal statement for the bank’s loan portfolio.
Ø Specification of the lending authority given to each loan officer and loan committee.
Ø Lines of responsibility in making assignments and reporting information within the local loan department.
Ø Operating procedures for soliciting, reviewing, evaluating, and making decision on customer loan application.
Ø The required documentation that is to accompany each loan application and what must be kept in the bank’s credit files.
Ø Lines of authority within the bank, detailing who is responsible for maintaining and reviewing g the bank’s credit files.
Ø Guidelines for taking, evaluating, and perfecting loan collateral.
Ø A statement of quality standards applicable to all loans.
Ø A statement of the preferred upper limit for total loans outstanding.
Ø A description of the bank’s principal trade area, from which most loans should come.
Ø A discussion of the preferred procedures for detecting, analyzing, and working out problem loan situations.
Uses of Fund
The banks cannot simply keep the resources with them without investing them profitably outside. Before a bank can plan intelligently for the employment of funds to advantage, he must be completely familiar with the nature 0 the funds with which he has to work.
The total working funds may vary from bank to bank depending upon the capital, reserves, deposits and borrowings of each bank; but the bank's own funds, viz, paid- up share capital, reserves and unallocated profits as stated earlier, accounts for only a small percentage of working funds. The contributions coming from various deposits in Current, Savings, Fixed and other Accounts constitute the major part of bank's funds. As these deposits from the public are payable on demand, or at a very short notice, banker cannot make advance whole of them. A part of the deposit is kept in cash to meet withdrawals of the depositors and a portion in the form of other liquid assets to maintain statutory cash reserve with the Central Bank, i.e., Bangladesh Bank.
The Premier Bank Limited do not lockup their funds for long periods. They usually grant short term advances which are utilized to meet the working capital requirements of the borrowers repayable at short notice. Only a small portion of a bank's demand and time liabilities is advanced on a long term basis where the banker usually insists on a regular repayment by the borrower. Thus The PBL has to employ his funds wisely so that he is able to meet the obligations and at the same time make maximum profit.
The banks cannot simply keep the resources with them without investing them profitably outside. Before a bank can plan intelligently for the employment of funds to advantage, he must be completely familiar with the nature 0 the funds with which he has to work.
The total working funds may vary from bank to bank depending upon the capital, reserves, deposits and borrowings of each bank; but the bank's own funds, viz, paid- up share capital, reserves and unallocated profits as stated earlier, accounts for only a small percentage of working funds. The contributions coming from various deposits in Current, Savings, Fixed and other Accounts constitute the major part of bank's funds. As these deposits from the public are payable on demand, or at a very short notice, banker cannot make advance whole of them. A part of the deposit is kept in cash to meet withdrawals of the depositors and a portion in the form of other liquid assets to maintain statutory cash reserve with the Central Bank, i.e., Bangladesh Bank.
The Premier Bank Limited do not lockup their funds for long periods. They usually grant short term advances which are utilized to meet the working capital requirements of the borrowers repayable at short notice. Only a small portion of a bank's demand and time liabilities is advanced on a long term basis where the banker usually insists on a regular repayment by the borrower. Thus The PBL has to employ his funds wisely so that he is able to meet the obligations and at the same time make maximum profit.
Management of fund:
The two main function of a bank are borrowing money from public by accepting deposits and lending to others for development of trade, commerce, industry and agriculture. A banker’s dealer in money and credit. It acts as financial intermediaries between savers and investors. It is a profit seeking business concern as any other commercial on industrial organization. The bank resources are slightly different from other business concern as it depends upon the mobilization of deposits from the public. Their owned fund (share capital and reserves) constitute generally not more than 10 % of the total. A banks main source of fund is the deposits made by the customers. So, a bankers has to pay interest to depositors at prescribe rate and meet the demand of money when their require it.
2.17 Sources of fund of the premier bank.
2.17.1 Paid up share capital: Paid-up share capital indicates the contribution made by the shareholders of the bank.
2.17.2 Reserve fund and undistributed profits: Reserve Fund is the amount accumulated over the years out of undistributed profit. It actually belongs to the shareholders. The accumulation of such retained reserves is an essential condition for financial soundness, stability and growth of the banks to fulfill special roles assigned to them from time to time. Besides, such reserves provide a cushion for meeting unforeseen contingencies. The Reserve Fund operates as an additional security to the bank's customers.
2.17.3 Deposits from the public in various accounts: Deposits from public represent by far the most powerful source of funds to a bank, accounting for over 90% of the total. These deposits are the key to a bank's potential growth. These funds are liabilities of the bank, because these have to be returned to the owners on demand. The principal types of deposit offered traditionally by all the major banks are Current deposits, Savings bank deposit and Fixed or Term deposits.
2.17.4 Borrowings from the Bangladesh Bank and other banks: Borrowing from the Bangladesh Bank and other banks also source of fund. In the emergency situation The Premier Bank Limited like other local commercial bank borrows money from Bangladesh bank and other local banks with very high rate of interest. Though it is not a regular of option of fund, but it is also very important in crisis situation. It takes secured and unsecured loan from banks. Bangladesh plays as a last resort for all commercial bank as well as for The premier Bank also.
The two main function of a bank are borrowing money from public by accepting deposits and lending to others for development of trade, commerce, industry and agriculture. A banker’s dealer in money and credit. It acts as financial intermediaries between savers and investors. It is a profit seeking business concern as any other commercial on industrial organization. The bank resources are slightly different from other business concern as it depends upon the mobilization of deposits from the public. Their owned fund (share capital and reserves) constitute generally not more than 10 % of the total. A banks main source of fund is the deposits made by the customers. So, a bankers has to pay interest to depositors at prescribe rate and meet the demand of money when their require it.
2.17 Sources of fund of the premier bank.
2.17.1 Paid up share capital: Paid-up share capital indicates the contribution made by the shareholders of the bank.
2.17.2 Reserve fund and undistributed profits: Reserve Fund is the amount accumulated over the years out of undistributed profit. It actually belongs to the shareholders. The accumulation of such retained reserves is an essential condition for financial soundness, stability and growth of the banks to fulfill special roles assigned to them from time to time. Besides, such reserves provide a cushion for meeting unforeseen contingencies. The Reserve Fund operates as an additional security to the bank's customers.
2.17.3 Deposits from the public in various accounts: Deposits from public represent by far the most powerful source of funds to a bank, accounting for over 90% of the total. These deposits are the key to a bank's potential growth. These funds are liabilities of the bank, because these have to be returned to the owners on demand. The principal types of deposit offered traditionally by all the major banks are Current deposits, Savings bank deposit and Fixed or Term deposits.
2.17.4 Borrowings from the Bangladesh Bank and other banks: Borrowing from the Bangladesh Bank and other banks also source of fund. In the emergency situation The Premier Bank Limited like other local commercial bank borrows money from Bangladesh bank and other local banks with very high rate of interest. Though it is not a regular of option of fund, but it is also very important in crisis situation. It takes secured and unsecured loan from banks. Bangladesh plays as a last resort for all commercial bank as well as for The premier Bank also.
Premier Social Activities:
As in the previous years, Premier Bank is involving its activities in social arena more vigorously. The bank extended financial assistance to the victims who were affected by natural disinters during the year 2004, the premier bank donated Tk. 4.00 million to the Prime Minister a relief fund and Tk. 4.00 million to the relief fund of Bangladesh Awami League for rehabilitations of flood affected people. The Bank also donated 1.00 million to the Leader of Opposition of the Parliament for the Medicare and rehabilitations of August 21, 2004 grenade victims. Premier Bank Limited also sponsors Premier Football League of 2005 and they also associated with Royal University Bangladesh as well as sponsor to others social activities. The bank has set up “Premier Bank Foundation” for extending benevolent services to the society. The bank will contribute to foundation out of its operating profit each year.
As in the previous years, Premier Bank is involving its activities in social arena more vigorously. The bank extended financial assistance to the victims who were affected by natural disinters during the year 2004, the premier bank donated Tk. 4.00 million to the Prime Minister a relief fund and Tk. 4.00 million to the relief fund of Bangladesh Awami League for rehabilitations of flood affected people. The Bank also donated 1.00 million to the Leader of Opposition of the Parliament for the Medicare and rehabilitations of August 21, 2004 grenade victims. Premier Bank Limited also sponsors Premier Football League of 2005 and they also associated with Royal University Bangladesh as well as sponsor to others social activities. The bank has set up “Premier Bank Foundation” for extending benevolent services to the society. The bank will contribute to foundation out of its operating profit each year.
Human Resources:
Premier Bank considers its employees as the most the most valued resources and the focal point of all its activities. The bank tried to assemble a pool of highly talented professionals coupled with fresh university graduates and built the finest the finest team in the industry and is providing them an environment in which team sprit, creativity and excellence thrives. As a service industry the bank is constantly trying to improve quality of its human resources where performance excellence is always encouraged by reward and recognition. The bank conducted comprehensive training sessions and workshops through is own Training Institutes and Bangladesh Institutes of Bank Management(BIBM) with the vision of developing Human Resources to the highest professional level and boosting productivity across the Bank Employees’ compensation package and other welfare schemes are kept in line with the prevailing market level. The total number of employees of the Bank as on December 31, 2004 stood at 554 corresponding to 435 in 2003. Net earning per employee was Tk. 1.67 million in 2004 reflecting a significantly high productivity.
Premier Bank considers its employees as the most the most valued resources and the focal point of all its activities. The bank tried to assemble a pool of highly talented professionals coupled with fresh university graduates and built the finest the finest team in the industry and is providing them an environment in which team sprit, creativity and excellence thrives. As a service industry the bank is constantly trying to improve quality of its human resources where performance excellence is always encouraged by reward and recognition. The bank conducted comprehensive training sessions and workshops through is own Training Institutes and Bangladesh Institutes of Bank Management(BIBM) with the vision of developing Human Resources to the highest professional level and boosting productivity across the Bank Employees’ compensation package and other welfare schemes are kept in line with the prevailing market level. The total number of employees of the Bank as on December 31, 2004 stood at 554 corresponding to 435 in 2003. Net earning per employee was Tk. 1.67 million in 2004 reflecting a significantly high productivity.
Treasury:
Treasury operations had long been considered as an important avenue for income generation purpose within the Head Office guided by Assets and Liability Committee (ALCO). Treasury operation played a major role in raising the banks income and recorded an income of Tk. 203.00 million in 2004.
The bank ensures available funds to meet its obligations of maintaining statutory liquidity Ratio (SLR) and investment of liquid assets in a profitable manner. We had liquid assets of Tk. 4449.30 million and as on 31 December 2004 our ratio of liquid assets to total asset was 22.14 percent.
2.6 Consumes Credit:
The bank is extending credit facilities through its Customers Credit Scheme to cater the credit needs of the fixed income group for household durables and cars/automobiles. Total outstanding in this segment stood at Tk. 196.94 million and recovery rate was 94 percent as December 31.2004.
2.7 Credit Card:
Premier Bank launched VISA Credit Card (Local & International) at the beginning of 2004 as New Year bonanza- first time in Bangladesh by local bank. PBL issued 14,200 cards just in 11 months with accumulated revenue of Tk. 78.10 million and profit of Tk. 35.00 Million by the end of the year under review. Card Division is now conducting its operation as an independent vital profit center of the bank as steps has been taken for extending merchant network for acquiring more business as well.
2.8 Operating Result:
The year under review was a successful year in terms of profits and turnover. The Bank made an operating profit of Tk. 930.93 million in 2004, compared to Tk 400.73 million in 200.3 registering a significant rise of 132.20 percent over the preceding year. After necessary provision net profit stood at Tk. 470.54 million as on December 31.2004. An amount of Tk. 385.35 million has been set aside for our tax contribution to the National Exchequer. PBL return on Assets (ROA) was 4.63 percent which was well above the industry average. As dynamic institutions we always stressed on sustainable growth. During the year we have given more of consolidation in different segment of business and our relationship with customers. PBL introduce credit cards, Corporate Banking, Treasury and a separate Leasing Division as vital profit centers.
2.9 Islamic banking branch:
The Premier Bank Limited is operating two branches one at Mohakhali , Dhaka and another one in Lalclighirpar, Sylhet on Islamic Shariah base profit & loss sharing principles. Premier bank Shariah Council under the chairmanship of Mr. Shah Abdul Hannan determines the guiding principles for operation of those who branches. The bank is maintaining a separate set of accounting system for Islamic banking branches which is completely different from conventional banking branches to confirm to the standards adopted by financial accounting & auditing organization for Islamic financial institutions.
The performance of PBL Islamic Banking during the year 2004-2005 is given bellow:
Deposits 876.53
Investments 282.42
Profit 1.05
2.10 Automation in banking operation:
The Bank continued to bring to all the branches under one network in order to facilitate “Real Time Online Banking” service to its customers. As a result customers are enjoying the advantage of any branch banking facility. Very soon the bank is going to provide internet banking and PBL already providing SMS banking facility allowing its customers to make query regarding account balance, cheque payment and deposit status and also delivery request for account statement.
Treasury operations had long been considered as an important avenue for income generation purpose within the Head Office guided by Assets and Liability Committee (ALCO). Treasury operation played a major role in raising the banks income and recorded an income of Tk. 203.00 million in 2004.
The bank ensures available funds to meet its obligations of maintaining statutory liquidity Ratio (SLR) and investment of liquid assets in a profitable manner. We had liquid assets of Tk. 4449.30 million and as on 31 December 2004 our ratio of liquid assets to total asset was 22.14 percent.
2.6 Consumes Credit:
The bank is extending credit facilities through its Customers Credit Scheme to cater the credit needs of the fixed income group for household durables and cars/automobiles. Total outstanding in this segment stood at Tk. 196.94 million and recovery rate was 94 percent as December 31.2004.
2.7 Credit Card:
Premier Bank launched VISA Credit Card (Local & International) at the beginning of 2004 as New Year bonanza- first time in Bangladesh by local bank. PBL issued 14,200 cards just in 11 months with accumulated revenue of Tk. 78.10 million and profit of Tk. 35.00 Million by the end of the year under review. Card Division is now conducting its operation as an independent vital profit center of the bank as steps has been taken for extending merchant network for acquiring more business as well.
2.8 Operating Result:
The year under review was a successful year in terms of profits and turnover. The Bank made an operating profit of Tk. 930.93 million in 2004, compared to Tk 400.73 million in 200.3 registering a significant rise of 132.20 percent over the preceding year. After necessary provision net profit stood at Tk. 470.54 million as on December 31.2004. An amount of Tk. 385.35 million has been set aside for our tax contribution to the National Exchequer. PBL return on Assets (ROA) was 4.63 percent which was well above the industry average. As dynamic institutions we always stressed on sustainable growth. During the year we have given more of consolidation in different segment of business and our relationship with customers. PBL introduce credit cards, Corporate Banking, Treasury and a separate Leasing Division as vital profit centers.
2.9 Islamic banking branch:
The Premier Bank Limited is operating two branches one at Mohakhali , Dhaka and another one in Lalclighirpar, Sylhet on Islamic Shariah base profit & loss sharing principles. Premier bank Shariah Council under the chairmanship of Mr. Shah Abdul Hannan determines the guiding principles for operation of those who branches. The bank is maintaining a separate set of accounting system for Islamic banking branches which is completely different from conventional banking branches to confirm to the standards adopted by financial accounting & auditing organization for Islamic financial institutions.
The performance of PBL Islamic Banking during the year 2004-2005 is given bellow:
Deposits 876.53
Investments 282.42
Profit 1.05
2.10 Automation in banking operation:
The Bank continued to bring to all the branches under one network in order to facilitate “Real Time Online Banking” service to its customers. As a result customers are enjoying the advantage of any branch banking facility. Very soon the bank is going to provide internet banking and PBL already providing SMS banking facility allowing its customers to make query regarding account balance, cheque payment and deposit status and also delivery request for account statement.
Trade Finance:
Trade finance is an important constituent of the service portfolio Premier Bank ands enhanced capacity to handle even more volume of business. Premier bank played a landing role among the private sector banks in this area. The import and export positions of the bank stood at Tk. 20592.70 million and Tk. 13515.80 million respectively, compared to Tk. 12756.18 mullion and Tk. 8178.12 million in preceding years, which reflects an increase of 61.43 percent and 65.26 percent respectively.
Trade finance is an important constituent of the service portfolio Premier Bank ands enhanced capacity to handle even more volume of business. Premier bank played a landing role among the private sector banks in this area. The import and export positions of the bank stood at Tk. 20592.70 million and Tk. 13515.80 million respectively, compared to Tk. 12756.18 mullion and Tk. 8178.12 million in preceding years, which reflects an increase of 61.43 percent and 65.26 percent respectively.
Loans and Advance:
Loans and advances are focal point of all the activities of every bank and in Premier Bank this is even more seriously dealt with to uphold the “Zero Classification” policy of the bank. Credit activities of the bank are being administrated by the Management Committee (MANCOM) at the Head office by strict separation of the responsibilities between assessment of the risk, lending decisions and its monitoring functions.
At the end of 2006 total loans and advances stood at Tk. 15383.93 million, a 90.03 percent increase compared to Tk. 8095.37 million from the preceding year. While growth in loans and advances were our major focus, under no circumstances there was any compromise on quality of advance. Total non-performing loans remained low at 0.43 percent in 2005. Loan to deposit ratio as on December 31. 2004 was 875.44 percent which is within the acceptable tolerance of Bangladesh Bank.
Portfolio of Loans and Advances as on December 31, 2004 is given below:
Loans and advances are focal point of all the activities of every bank and in Premier Bank this is even more seriously dealt with to uphold the “Zero Classification” policy of the bank. Credit activities of the bank are being administrated by the Management Committee (MANCOM) at the Head office by strict separation of the responsibilities between assessment of the risk, lending decisions and its monitoring functions.
At the end of 2006 total loans and advances stood at Tk. 15383.93 million, a 90.03 percent increase compared to Tk. 8095.37 million from the preceding year. While growth in loans and advances were our major focus, under no circumstances there was any compromise on quality of advance. Total non-performing loans remained low at 0.43 percent in 2005. Loan to deposit ratio as on December 31. 2004 was 875.44 percent which is within the acceptable tolerance of Bangladesh Bank.
Portfolio of Loans and Advances as on December 31, 2004 is given below:
Deposit:
The deposit base of the bank registered a significant growth of 79.50 percent and stood at Tk. 18005.20 million at the end of 2004 as against Tk. 10030.52 million in preceding year. Deposit mix at the end of year 2004 is as follows:
The deposit base of the bank registered a significant growth of 79.50 percent and stood at Tk. 18005.20 million at the end of 2004 as against Tk. 10030.52 million in preceding year. Deposit mix at the end of year 2004 is as follows:
Capital Finance:
Authorized capital of the bank has been increased from Tk. 1000.00 million to Tk. 2000.00 during the year and Paid-up capital at Tk 557.55 million as in December 2004. Reserve Fund of the Bank stood at Tk. 301.08 Million. Retained earnings 301.40 million, General Provision for unclassified advances at Tk. 152.60 million and this amount is also available for calculating capital adequacy requirement. Thus total capital funds stood at Tk. 1312.63 million as on December 31, 2004. The Capital Adequacy Ratio of the bank as on December 31, 2004 worked out at 10.69 percent as against the minimum requirement of 9 percent, which testifies to the sound capital base of the bank. The Capital Adequacy ratio in 2003 was 11.76.
Authorized capital of the bank has been increased from Tk. 1000.00 million to Tk. 2000.00 during the year and Paid-up capital at Tk 557.55 million as in December 2004. Reserve Fund of the Bank stood at Tk. 301.08 Million. Retained earnings 301.40 million, General Provision for unclassified advances at Tk. 152.60 million and this amount is also available for calculating capital adequacy requirement. Thus total capital funds stood at Tk. 1312.63 million as on December 31, 2004. The Capital Adequacy Ratio of the bank as on December 31, 2004 worked out at 10.69 percent as against the minimum requirement of 9 percent, which testifies to the sound capital base of the bank. The Capital Adequacy ratio in 2003 was 11.76.
The Premier Bank Limited- Overview of Operating Outcome
The Premier Bank has completed five years of operations and it found the bank at the top spot in terms of growth, quality services and image building to the customers and value addition for the shareholders. The bank made tremendous growth progress in all spheres of business operations including profitability in 2004. The trademark “service first” associated with our Banks name is nota mere slogan any more, rather a practice and way of life in Premier Banks’ day-to-day operation. The Bank remained focused on customer service during the whole year and ensured delivery of “Total Quality Services” in the dealings with the customers. The bank closed the year under review with a number of achievements:
Ø Registered significant growth (2.5 times over 2003)
Ø Captured leading positions in the industry with capital adequacy ratio of 10.69 percent, assets quality (non-performing loan 0.43 percent), proactive management, earnings (ROA 4.63 percent) and liquidity maintenances (CRR 4.98 percent, SLR 16.54 percent, loan-deposit ratio 85.447 percent).
The Premier Bank has completed five years of operations and it found the bank at the top spot in terms of growth, quality services and image building to the customers and value addition for the shareholders. The bank made tremendous growth progress in all spheres of business operations including profitability in 2004. The trademark “service first” associated with our Banks name is nota mere slogan any more, rather a practice and way of life in Premier Banks’ day-to-day operation. The Bank remained focused on customer service during the whole year and ensured delivery of “Total Quality Services” in the dealings with the customers. The bank closed the year under review with a number of achievements:
Ø Registered significant growth (2.5 times over 2003)
Ø Captured leading positions in the industry with capital adequacy ratio of 10.69 percent, assets quality (non-performing loan 0.43 percent), proactive management, earnings (ROA 4.63 percent) and liquidity maintenances (CRR 4.98 percent, SLR 16.54 percent, loan-deposit ratio 85.447 percent).
ATM:
Premier bank Limited already buys numbers of ATM machines and set up will be start very soon around the country. It will help to the customers deposit and withdrawal of money any time any where in Bangladesh.
1.15.4 Banking Software:
Robust banking software which will integrate the Total Banking Operations and provide total solutions to the customers needs to under selections. Implementations are expected soon.
Premier bank Limited already buys numbers of ATM machines and set up will be start very soon around the country. It will help to the customers deposit and withdrawal of money any time any where in Bangladesh.
1.15.4 Banking Software:
Robust banking software which will integrate the Total Banking Operations and provide total solutions to the customers needs to under selections. Implementations are expected soon.
Online any Branch Banking:
Premier Bank Limited already been set up wide are network using Radio link, fiber optic and other available communication systems to provide any branch banking to its customers in really better, easy and modern way which is very significant in today’s banking.
Customers of one branch are now able to deposit and withdraw money at any of our branches. No TT/DD or cash carrying will be necessary. Online branch banking service is designed to serve it’s valued to clients. Under this system any one be able to do the followings type of transaction:
Ø Cash withdrawal from his or account from any branch of PBL.
Ø Deposit in account at any branch of the bank.
Ø Transfer of money from one account to another account at any of the branch of PBL.
Ø There is no limit of transaction so better to say unlimited transaction.
Premier Bank Limited already been set up wide are network using Radio link, fiber optic and other available communication systems to provide any branch banking to its customers in really better, easy and modern way which is very significant in today’s banking.
Customers of one branch are now able to deposit and withdraw money at any of our branches. No TT/DD or cash carrying will be necessary. Online branch banking service is designed to serve it’s valued to clients. Under this system any one be able to do the followings type of transaction:
Ø Cash withdrawal from his or account from any branch of PBL.
Ø Deposit in account at any branch of the bank.
Ø Transfer of money from one account to another account at any of the branch of PBL.
Ø There is no limit of transaction so better to say unlimited transaction.
15 Service of the premier bank:
1.15.1 Lockers Service:
For safekeeping of customers’ valuables and important documents and goods like jewelries and gold ornaments, premier locker service is available in most of the branches of urban arrears.
NATURE OF THE SERVICE
NATURE OF CHARGES
RATE OF THE CHARGES
Custody of locker/safe
Rent
a. Yearly TK.1000/= for small size locker.
b. Yearly TK.1200/= for medium size locker.
c. Yearly TK.2000/= for big size locker.
1.15.1 Lockers Service:
For safekeeping of customers’ valuables and important documents and goods like jewelries and gold ornaments, premier locker service is available in most of the branches of urban arrears.
NATURE OF THE SERVICE
NATURE OF CHARGES
RATE OF THE CHARGES
Custody of locker/safe
Rent
a. Yearly TK.1000/= for small size locker.
b. Yearly TK.1200/= for medium size locker.
c. Yearly TK.2000/= for big size locker.
Deposit Products:
Ø Monthly Savings Scheme (MSS).
Ø Monthly Income Scheme (MIS).
Ø Education Savings Scheme (ESS).
Ø Special Deposit Scheme (SDS).
Ø Fixed Deposit
Ø Savings Account.
Ø Current Account.
Ø Corporate savings account.
Ø Short Term Deposit Account.
Ø RFCD/NFCD Account.
Premier Bank is paying interest on daily balance of the savings & corporate savings accounts.
Ø Monthly Savings Scheme (MSS).
Ø Monthly Income Scheme (MIS).
Ø Education Savings Scheme (ESS).
Ø Special Deposit Scheme (SDS).
Ø Fixed Deposit
Ø Savings Account.
Ø Current Account.
Ø Corporate savings account.
Ø Short Term Deposit Account.
Ø RFCD/NFCD Account.
Premier Bank is paying interest on daily balance of the savings & corporate savings accounts.
1.10 Future directions:
The objectives for the years ahead are to become a highly professional and profitable bank to contribute to the economic development of the country. Priorities have been identified for implementing in the near future. These include looking out for new business lines, developing more products & services, widening branch network and introducing newer banking technology.
Even through global and national economy offers no immediate sign of fast growth there is an apparent advantage to our bank in attracting business by offering better service at competitive terms. We believe the bank is well structured, well focused and in right platform to become a top ranking bank of the country within
The objectives for the years ahead are to become a highly professional and profitable bank to contribute to the economic development of the country. Priorities have been identified for implementing in the near future. These include looking out for new business lines, developing more products & services, widening branch network and introducing newer banking technology.
Even through global and national economy offers no immediate sign of fast growth there is an apparent advantage to our bank in attracting business by offering better service at competitive terms. We believe the bank is well structured, well focused and in right platform to become a top ranking bank of the country within
1.8 Objectives of the bank:
Ø To ensure and motivate new entrepreneur to establish industries and business in line with development of the national economy.
Ø To boost up investment in private sector by financiering independently or under syndication arrangement.
Ø To financing foreign trade of the country both in export and import.
Ø To enhance savings tendency of the people by offerings attractive and lucrative new savings scheme.
Ø To develop the standard of living of the limited income group by offering consumer credit scheme.
Ø To boost up mobilization of savings both from urban and rural areas.
Ø To develop the model of participatory banking.
Ø To develop competitive most modern science and social welfare oriented banking institutions on the country.To finance the industry, trade and commerce through conventional way as well by offerings various customers’ friendly credit products.
Ø To ensure and motivate new entrepreneur to establish industries and business in line with development of the national economy.
Ø To boost up investment in private sector by financiering independently or under syndication arrangement.
Ø To financing foreign trade of the country both in export and import.
Ø To enhance savings tendency of the people by offerings attractive and lucrative new savings scheme.
Ø To develop the standard of living of the limited income group by offering consumer credit scheme.
Ø To boost up mobilization of savings both from urban and rural areas.
Ø To develop the model of participatory banking.
Ø To develop competitive most modern science and social welfare oriented banking institutions on the country.To finance the industry, trade and commerce through conventional way as well by offerings various customers’ friendly credit products.
1.5 Vision of the Bank:
“To be the best amongst the top financial institutions”.
1.6 Mission of the Bank:
Ø To be the most caring and customer friendly provide of financial services, creating opportunities for more people in more places.
Ø To ensure stability ands sound growth whilst enhancing the value of shareholders investment.
Ø To aggressively adopt technology at all levels of operations and to improve efficiency and reduce cost per transactions.
Ø To ensure a high level of transparency and ethical standards in all business transacted by the bank.
Ø To provide congenial atmosphere which will attract competent work force who will be proud and eager to work for the bank.
Ø To be socially responsible and strive to uplift the quality of life by making effective contribution to national development.
“To be the best amongst the top financial institutions”.
1.6 Mission of the Bank:
Ø To be the most caring and customer friendly provide of financial services, creating opportunities for more people in more places.
Ø To ensure stability ands sound growth whilst enhancing the value of shareholders investment.
Ø To aggressively adopt technology at all levels of operations and to improve efficiency and reduce cost per transactions.
Ø To ensure a high level of transparency and ethical standards in all business transacted by the bank.
Ø To provide congenial atmosphere which will attract competent work force who will be proud and eager to work for the bank.
Ø To be socially responsible and strive to uplift the quality of life by making effective contribution to national development.
1.5 Vision of the Bank:
“To be the best amongst the top financial institutions”.
1.6 Mission of the Bank:
Ø To be the most caring and customer friendly provide of financial services, creating opportunities for more people in more places.
Ø To ensure stability ands sound growth whilst enhancing the value of shareholders investment.
Ø To aggressively adopt technology at all levels of operations and to improve efficiency and reduce cost per transactions.
Ø To ensure a high level of transparency and ethical standards in all business transacted by the bank.
Ø To provide congenial atmosphere which will attract competent work force who will be proud and eager to work for the bank.
Ø To be socially responsible and strive to uplift the quality of life by making effective contribution to national development.
“To be the best amongst the top financial institutions”.
1.6 Mission of the Bank:
Ø To be the most caring and customer friendly provide of financial services, creating opportunities for more people in more places.
Ø To ensure stability ands sound growth whilst enhancing the value of shareholders investment.
Ø To aggressively adopt technology at all levels of operations and to improve efficiency and reduce cost per transactions.
Ø To ensure a high level of transparency and ethical standards in all business transacted by the bank.
Ø To provide congenial atmosphere which will attract competent work force who will be proud and eager to work for the bank.
Ø To be socially responsible and strive to uplift the quality of life by making effective contribution to national development.
Industrial Psychology
Industrial psychology is a relatively new branch of psychology
that was created for corporations and organizations that needed
more structure. Industrial psychology is able to provide this
structure by evaluating employee behavior for
the good of the company.
Essential of Industrial Psychology
Essentially, industrial psychologists study the
behavior of employees in a work setting.
Although industrial psychology didn't begin
until the 1920's, the discipline has evolved/developed
rapidly and revolutionized the workplace
within the last century.
Because the workplace is a social system,
the application of industrial psychology is
useful in understanding its complexity
Psychologists View
For years, psychologists have studied how human
beings have interacted with their environments
and each other, but industrial psychology
begins to evaluate the interaction between
people and their jobs. Industrial psychologists
can be used to improve job satisfaction as well as
company productivity and is becoming
vital to the success of many organizations
There are certain things that industrial psychologists
focus on when evaluating the relationship
a person has with their work.
They analyze the way a person
works, their skills, duties, obligations, and general
satisfaction with their job on a day-to-day basis.
This information is extremely helpful to human resources
departments and company overseers who must create
training programs, feedback and rewards systems
, and make hiring decisions as well as engage
in recruitment practices. Most companies use
industrial psychologists to train their own staff
so that the organizations can run
smoothly and at peak capacity.
Importance of Industrial Psychology
One of the most interesting aspects of
industrial psychology is how employee
behavior affects others individuals on the
job and organization in general. Industrial
psychology can be used to reduce
counterproductive behavior, enhance team
effectiveness, and boost morale.
It is also vital in conflict resolution
Some Key Components of Industrial Psychology
Although industrial psychology is a mixture of
anthropology, counseling, sociology and
industrial management, there are key
components used in this type of psychology.
Some of the key components include the
evaluation of employee's personalities, perceptions,
as well the biological side of their behavior.
By documenting these key points, industrial psychologists
have the ability to help organizations improve their
functionality and set up a system that promotes
growth for the company and employees.
Industry
Any department or branch
of art, occupation, or business; especially,
one which employs much labor and capital
and is a distinct branch of trade; as, the
sugar industry; the iron industry; the cotton industry.
Company
Any entity engaging in business,
such as a proprietorship,
partnership, or corporation
Corporation
The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. The process of becoming a corporation, call incorporation, gives the company separate legal standing from its owners and protects those owners from being personally liable in the event that the company is sued (a condition known as limited liability). Incorporation also provides companies with a more flexible way to manage their ownership structure. In addition, there are different tax implications for corporations, although these can be both advantageous and disadvantageous. In these respects, corporations differ from sole proprietorships and limited partnerships.
Definition of HRM
HRM is a management practice where the
employees of an organization are treated
as its asset & conscious effort is made to
address their financial, intellectual, social &
emotional needs so that their
productivity is maximized.
Financial->high salary, fringe benefits etc Intellectual->challenge at work, career growth
prospects, learning etc Social->work life balance, status, pride,
job satisfaction etcEmotional->job security, stress caused by
work, prospects of self actualization etc
Some Norms of HRM
Human resources management has its focus mainly on balancing the needs, goals objectives and values of both employers and employees.
Putting right man in the right place by a careful program of selection procedure and replacement to make sure that the new recruit is physically and mentally fit for the job to be performed. This is needed for the new employee to develop and grow.
Arrange training for the new recruits for developing professional and technical competency to perform.
Transforming the organization into a coordinated entity of different departments permitting reduction of interpersonal and inter-departmental frictions and conflicts.
Ensuring employee security with opportunity incentive and recognition, thereby encouraging employees to stick to their jobs in the hope of advancement in the firm and thereby reducing turnover and loitering.
Rewarding star performers. Reward should be earned,not given.
Providing participation in decision making and ensuring transparency in communication.
In effective, human resource policies aim at ensuring equity and justice to all employees irrespective of sex, caste, religion,culture,and color through provisions for adequate remuneration and scope for growth in discipline and planned way
Objectives of HRM
Helping the organization to reach its goals
Developing and maintaining a quality of work life.
Effective Utilization of Human Resources.
Providing the organization well trained and well motivated employees.
Increasing employees job satisfaction and self actualization.
To help maintain ethical policies and behavior.
Components of Human Resource Management
Acquisition
a.Human Resource Planning
b.Recruitment – Internal, External
c. Employee Socialization
Human Resource Planning
Human resource planning,then,translates the organization’s objectives and plans into the number of workers needed to meet those objectives.Without Clear-cut planning ,estimation of an organization’s human resource need is reduced to mere guesswork.
Why do we need HR Planning
To ensure that people are available to provide the continued smooth development of an organization, organizations engage in human resource Planning. The human resources planning is to assess where the organization is, where it is going, and what implications these assessments have no future supplies of and demands for human resources. Attempts must then be made to match supplies and demand, making them compatible with the achievement of the organization’s future needs
Human resource Planning and Man power planning
Human Resources Planning refers to planning
conducted for all aspects of Human Resources (i.e. Training, Safety,
Recruitment, Manning levels, Performance Management etc.), whereas
Manning Planning tends to revolve predominantly
around numbers, that is, the number of people required to efficiently and productively produce the best result for the least amount of money.
Industrial psychology is a relatively new branch of psychology
that was created for corporations and organizations that needed
more structure. Industrial psychology is able to provide this
structure by evaluating employee behavior for
the good of the company.
Essential of Industrial Psychology
Essentially, industrial psychologists study the
behavior of employees in a work setting.
Although industrial psychology didn't begin
until the 1920's, the discipline has evolved/developed
rapidly and revolutionized the workplace
within the last century.
Because the workplace is a social system,
the application of industrial psychology is
useful in understanding its complexity
Psychologists View
For years, psychologists have studied how human
beings have interacted with their environments
and each other, but industrial psychology
begins to evaluate the interaction between
people and their jobs. Industrial psychologists
can be used to improve job satisfaction as well as
company productivity and is becoming
vital to the success of many organizations
There are certain things that industrial psychologists
focus on when evaluating the relationship
a person has with their work.
They analyze the way a person
works, their skills, duties, obligations, and general
satisfaction with their job on a day-to-day basis.
This information is extremely helpful to human resources
departments and company overseers who must create
training programs, feedback and rewards systems
, and make hiring decisions as well as engage
in recruitment practices. Most companies use
industrial psychologists to train their own staff
so that the organizations can run
smoothly and at peak capacity.
Importance of Industrial Psychology
One of the most interesting aspects of
industrial psychology is how employee
behavior affects others individuals on the
job and organization in general. Industrial
psychology can be used to reduce
counterproductive behavior, enhance team
effectiveness, and boost morale.
It is also vital in conflict resolution
Some Key Components of Industrial Psychology
Although industrial psychology is a mixture of
anthropology, counseling, sociology and
industrial management, there are key
components used in this type of psychology.
Some of the key components include the
evaluation of employee's personalities, perceptions,
as well the biological side of their behavior.
By documenting these key points, industrial psychologists
have the ability to help organizations improve their
functionality and set up a system that promotes
growth for the company and employees.
Industry
Any department or branch
of art, occupation, or business; especially,
one which employs much labor and capital
and is a distinct branch of trade; as, the
sugar industry; the iron industry; the cotton industry.
Company
Any entity engaging in business,
such as a proprietorship,
partnership, or corporation
Corporation
The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. The process of becoming a corporation, call incorporation, gives the company separate legal standing from its owners and protects those owners from being personally liable in the event that the company is sued (a condition known as limited liability). Incorporation also provides companies with a more flexible way to manage their ownership structure. In addition, there are different tax implications for corporations, although these can be both advantageous and disadvantageous. In these respects, corporations differ from sole proprietorships and limited partnerships.
Definition of HRM
HRM is a management practice where the
employees of an organization are treated
as its asset & conscious effort is made to
address their financial, intellectual, social &
emotional needs so that their
productivity is maximized.
Financial->high salary, fringe benefits etc Intellectual->challenge at work, career growth
prospects, learning etc Social->work life balance, status, pride,
job satisfaction etcEmotional->job security, stress caused by
work, prospects of self actualization etc
Some Norms of HRM
Human resources management has its focus mainly on balancing the needs, goals objectives and values of both employers and employees.
Putting right man in the right place by a careful program of selection procedure and replacement to make sure that the new recruit is physically and mentally fit for the job to be performed. This is needed for the new employee to develop and grow.
Arrange training for the new recruits for developing professional and technical competency to perform.
Transforming the organization into a coordinated entity of different departments permitting reduction of interpersonal and inter-departmental frictions and conflicts.
Ensuring employee security with opportunity incentive and recognition, thereby encouraging employees to stick to their jobs in the hope of advancement in the firm and thereby reducing turnover and loitering.
Rewarding star performers. Reward should be earned,not given.
Providing participation in decision making and ensuring transparency in communication.
In effective, human resource policies aim at ensuring equity and justice to all employees irrespective of sex, caste, religion,culture,and color through provisions for adequate remuneration and scope for growth in discipline and planned way
Objectives of HRM
Helping the organization to reach its goals
Developing and maintaining a quality of work life.
Effective Utilization of Human Resources.
Providing the organization well trained and well motivated employees.
Increasing employees job satisfaction and self actualization.
To help maintain ethical policies and behavior.
Components of Human Resource Management
Acquisition
a.Human Resource Planning
b.Recruitment – Internal, External
c. Employee Socialization
Human Resource Planning
Human resource planning,then,translates the organization’s objectives and plans into the number of workers needed to meet those objectives.Without Clear-cut planning ,estimation of an organization’s human resource need is reduced to mere guesswork.
Why do we need HR Planning
To ensure that people are available to provide the continued smooth development of an organization, organizations engage in human resource Planning. The human resources planning is to assess where the organization is, where it is going, and what implications these assessments have no future supplies of and demands for human resources. Attempts must then be made to match supplies and demand, making them compatible with the achievement of the organization’s future needs
Human resource Planning and Man power planning
Human Resources Planning refers to planning
conducted for all aspects of Human Resources (i.e. Training, Safety,
Recruitment, Manning levels, Performance Management etc.), whereas
Manning Planning tends to revolve predominantly
around numbers, that is, the number of people required to efficiently and productively produce the best result for the least amount of money.
Definition
Generally an organization is a group of created and maintained to achieve specific objectives.
Argyris said,” Organizations are intricate human strategy design to achieve certain objectives.”
Barnard said,” An organization is a system of cooperative human behavior.”
Thus in our phrase an organization is define as a cooperative social system involving coordinate efforts of two or more people pursuing a share purpose.
Elements of Organization
Ø Goal oriented : people with a purpose
Ø Social system : people working in a group
Ø Technical system : people using knowledge, technology and machine
Ø Integration of structured activities : people coordinating their efforts
Fayol’s Principles of organization
Fayol introduced such principles as the following.
Ø Unity of command. Each worker is to report to one, and only one, boss. The benefits of this principle are obvious. What happens if two different bosses give you different assignments? Which one should you follow? To prevent such confusion, each person is to report to only one manager.
Ø Hierarchy of authority. All workers should know to whom they should report. Managers should have the right to give orders and expect others to follow.
Ø Division of labor. Functions are to be divided into areas of specialization such as production, marketing and finance.
Ø Subordination of individual interest to the general interest. Workers are to think of themselves as a coordinate team. The goals of the team are more important than the goals of individual workers.
Ø Authority. Managers have the right to give orders and the power to exact obedience. Authority and responsibility are related; whenever authority is exercised, responsibility arises.
Ø Degree of centralization. The amount of decision making power vested in top management should vary by circumstances. In a small organization, it’s possible to centralized all decision making power in the top manager. In a large organization, however, some decision making power should be delegated to lower lever manager and employees on both major and minor issues.
Ø Clear communication channels. All workers should be able to reach others in the firm quickly and easily.
Ø Order. Materials and people should be placed and maintained in the proper location.
Ø Equity. A manager should treat employees and peers with respect and justices.
Ø Esprit de corps. A spirit of pride and loyalty should be created among people in the firm.
Common Characteristics of Organizations
According to Edger Schein, a prominent organizational psychologist, all organizations share four characteristics: (1) coordination of effort, (2) common gal or purpose, (3) division of labor and (4) hierarchy of authority.
Coordination of effort: Individuals who join together and coordinate their mental and/or physical efforts can accomplish great and exciting things. Building the great pyramids, conquering polio, sending manned flights to the moon all these achievements far exceeded the talents and abilities of any single individual.
Common goal or purpose: Coordinating of efforts cannot take place unless those who have joined together agree to strive for something of mutual interest. A common goal or purpose gives the organization focus and its members a rallying point. For example, in 1995, when Marriott International owned 1,000 hotels, Chairman Bill Marriott, Jr. announced the ambitious goal of owning 2,000 hotels by the year 2000. This strategic goal guides Marriott’s aggressive hotel acquisition program and expands its reach. In early 1997, Marriott was on track with 1,300 hotels in 38 nations.
Division of labor: By systematically dividing complex tasks into specialized jobs, an organization can use its human resource efficiently. Division of labor permits each organization member to become more proficient by repeatedly doing the same specialized task. The dividing of labor has been known for a long time. One of its early proponents was the pioneering economist Adam Smith. While touring an eighteen-century pin-manufacturing plant, Smith observed that a group of specialized laborers could produce 48,000 pins a day. This was an astounding figure, considering that each laborer could produce only 20 pins a day when working alone.
Hierarchy of authority: According to traditional organization theory, if anything is to be accomplished formal collective effort, someone should be given the authority to see that the intended goals are carried out effectively and efficiently. Organization theorists have defined authority as the right to direct the actions of others. Without a clear hierarchy of authority, coordination of effort is difficult, if not impossible, to achieve. Accountability also is enhanced by having people serve in what is often called, in military language, the chain of command. For instance, a grocery store manager has authority over the assistant manager, who has authority over the produce department. Without such a chain of command, the store manager would have the impossible task of directly overseeing the work of every employee in the store.
Putting all the pieces together: Four of the foregoing characteristics are necessary before an organization can be said to exist. Many well intentioned attempts to create organizations have failed because something was missing. In 1896, for example, Fredrick Strauss, a boyhood friend of Henry Ford, helped Ford set up a shop, supposedly to produce gasoline-powered engines. But while Stress was busy carrying out his end of the bargain by machining needs parts, Ford was secretly building a horseless carriage in a workshop behind his house. Although Henry Ford eventually wants on to become an automobile-industry giant, his first attempt at organization failed because not all of the pieces of an organization were in place. Ford’s and his partner’s efforts were not coordinated, they worked at cross-purpose, their labor was vaguely divided, and they had no hierarchy of authority. In short, they had organizational intentions, but no organization.
Classifying Organizations
Because organizations are created to pursue particular purposes, they can classify according to their intended purpose. The classification by organizational purpose discussed here has four categories: business, nonprofit service, mutual-benefit and commonweal organizations. Some of today’s large and complex organizations overlap categories. For example, religious organizations are both nonprofit service organizations and mutual-benefit organizations, nevertheless classifying organizations by their purpose helps clarify the variety of roles they play in society and the similar problems shared by organizations with similar purpose.
Business organizations: business organizations such as General Milks, United Airlines and the Washington Post all have one underlying purpose: to make a profit in a society acceptable manner. Business cannot survive, let alone demand for products and services. This economic production function is important to society that many think immediately of business when the word management is mentioned.
Purpose Primary Common Overriding
Beneficiary Example Management problem
Business Owners Computer manufacturers Must make a profit
Fast-food
Newspaper
Restaurant chains
Nonprofit Clients Universities Must selectively screen
Service Welfare agencies large numbers of
Hospitals (nonprofit) potential clients
Mutual-benefit Members Unions Must satisfy members
Clubs needs
Political parties
Cooperatives
Commonweal Public at large Postal service Must provide
Police department standardized service
Fire department to large groups of
Public schools people with diverse
needs
Nonprofit service organization: Unlike business, many organizations survive and even grow, without making any profits at all. They need to be solvent, of course, but they measure their success not in dollars and cents but by hoe well they provide a specific service for some segment of society. The American Heart Association, Notre Dame University and Massachusetts General Hospital are example of nonprofit service organizations. Because the services of such organization are usually in great demand, one of their biggest problems lies in screening larges numbers of applicants to determine who qualifies for service.
Mutual-benefit organizations: Often, as in the case of labor unions or political parties, individuals join together strictly to pursue their own self-interests. In other cases the National Association of Manufacturers, for example- organizations may feel compelled to join together in an umbrella organization. Mutual-benefit organizations, like all other types of organizations, must be effectively and efficiently managed if they are to survive. In this instance, survival depends on satisfying the needs of the members.
Commonweal organizations: Like nonprofit service organizations, commonweal organizations offer public services without attempting to earn a profit. But, unlike nonprofit service organizations, which serve some segment of society, a commonweal organization offers standardized service to all members of a given population. The Canadian Army, for example, protects everyone within Canada’s border, not just a select few.
Formal Organization
Formal organization is a pattern of relationship and task define by official rules, policies and system.
Informal Organization
Informal organization is a network of personal and social relation not established or required by formal organization but arising spontaneously as people associate one another.
Types of Formal Organizations
Ø Line organization : The most simple form organization with no use of advisor and staff.
Ø Line and staff organization : Organization in which line managers make decision and staff personnel provide advice and support.
Ø Functional organization : Organization that give stuff personnel temporary and limited authority for specific task.
Ø Committee : A body of persons formed to managed and responsible for any specific administrative purpose.
Departmentation
Departmentation is the process of grouping jobs according to logical arrangement.
Types of Departmentation
Ø Customer departmentation : Grouping activities according to specific customer or customers’ group.
PresidentBy customer group
Customers
Commercial users
Manufacturers
Institutions
Ø Functional departmentation : Grouping jobs involving same and similar activities.
President
By function
Accounting
Human Resources
Finance
Marketing
Production
Ø Product departmentation : Grouping activities around products and product groups.
Marketing
manager
By product
Trade books
College texts
Technical books
Ø Location departmentation : Grouping jobs on the basis of define geographic areas.
By geographic location
Vice President
(International operations)
Canadian
Division
Japanese
Division
European
Division
Korean
Division
Reason of Departmentation
Ø Proper specialization
Ø Necessity of control
Ø For better coordination
Ø For special attention of activities
Ø To great competition among different department
Ø To consider local condition
Ø To give interest to executive’s interest
Advantages of departmentation
Ø Employees can develop skills in depth and can progress within a department as they master those skills.
Ø The company can achieve economics of scale in that it can centralized all the resource it needs and locate various experts in that area.
Ø There is good coordination within the function, and top management can easily direct and control various department activities.
Disadvantages of departmentation
Ø There may be a lack of communication among the different departments.
Ø Individual employees may begin to identify with their department and its goals rather than with the goals of organization as a whole.
Ø The company’s response to external change may be slow.
Span of Management
Span of management is the number of people who report to a particular manager.
Again spun of management and control means the number of subordinates a supervisor can supervise effectively.
Formula of A V Graicunas,
I = N (2^N/2+N-1)
Here, I = Total number of instruction with and among subordinates
N = Total numbers of subordinates
Organization with Narrow Spans
Advantages
Ø Close supervision
Ø Close control
Ø Fast communication between subordinates and supervisors
Disadvantages
Ø Supervisors tends to get too involved in subordinates’ work
Ø Many levels of management
Ø High cost due to many level
Ø Excessive difference between lowest level and top level
Organization with Wide Spans
Advantages
Ø Superior are forced to delegate
Ø Clear policies must be made
Disadvantages
Ø Technology of overloaded superiors to become decision bottlenecks
Delegation
Delegation is the process of assigning various degrees of decision making authority to lower level employee.
Reasons for Delegation
In effect a manager who delegate is sharing his workload with a subordinate in whom he has confidence. The main reasons why delegation is practiced are:
Ø A manager is relieved of some less important or less immediate tasks and thus has time for higher-level work.
Ø Delegation can be more efficient because decisions are taken lower down the hierarchy and communication delay are reduced or eliminated.
Ø Delegation is good training for junior personnel. They learn to make decision and to live with the consequences. It is more challenging for them.
Ø Delegation makes the organization more flexible and adaptable.
Ø Delegation satisfies ‘higher-order’ needs and is a necessary part of enrichment programmes and is consciously practiced by many organizations as part of staff development programmes.
Centralization
Centralization is defined as the relative relation of decision making authority by top management.
Decentralization
Decentralization is granting of decision making authority by management to lower level employees.
Matrix Organization
Matrix organization is a structure with both vertical and horizontal lines of authority.
Actually it’s a combination of functional and product forms of departmentation in the some organization structure.
Generally an organization is a group of created and maintained to achieve specific objectives.
Argyris said,” Organizations are intricate human strategy design to achieve certain objectives.”
Barnard said,” An organization is a system of cooperative human behavior.”
Thus in our phrase an organization is define as a cooperative social system involving coordinate efforts of two or more people pursuing a share purpose.
Elements of Organization
Ø Goal oriented : people with a purpose
Ø Social system : people working in a group
Ø Technical system : people using knowledge, technology and machine
Ø Integration of structured activities : people coordinating their efforts
Fayol’s Principles of organization
Fayol introduced such principles as the following.
Ø Unity of command. Each worker is to report to one, and only one, boss. The benefits of this principle are obvious. What happens if two different bosses give you different assignments? Which one should you follow? To prevent such confusion, each person is to report to only one manager.
Ø Hierarchy of authority. All workers should know to whom they should report. Managers should have the right to give orders and expect others to follow.
Ø Division of labor. Functions are to be divided into areas of specialization such as production, marketing and finance.
Ø Subordination of individual interest to the general interest. Workers are to think of themselves as a coordinate team. The goals of the team are more important than the goals of individual workers.
Ø Authority. Managers have the right to give orders and the power to exact obedience. Authority and responsibility are related; whenever authority is exercised, responsibility arises.
Ø Degree of centralization. The amount of decision making power vested in top management should vary by circumstances. In a small organization, it’s possible to centralized all decision making power in the top manager. In a large organization, however, some decision making power should be delegated to lower lever manager and employees on both major and minor issues.
Ø Clear communication channels. All workers should be able to reach others in the firm quickly and easily.
Ø Order. Materials and people should be placed and maintained in the proper location.
Ø Equity. A manager should treat employees and peers with respect and justices.
Ø Esprit de corps. A spirit of pride and loyalty should be created among people in the firm.
Common Characteristics of Organizations
According to Edger Schein, a prominent organizational psychologist, all organizations share four characteristics: (1) coordination of effort, (2) common gal or purpose, (3) division of labor and (4) hierarchy of authority.
Coordination of effort: Individuals who join together and coordinate their mental and/or physical efforts can accomplish great and exciting things. Building the great pyramids, conquering polio, sending manned flights to the moon all these achievements far exceeded the talents and abilities of any single individual.
Common goal or purpose: Coordinating of efforts cannot take place unless those who have joined together agree to strive for something of mutual interest. A common goal or purpose gives the organization focus and its members a rallying point. For example, in 1995, when Marriott International owned 1,000 hotels, Chairman Bill Marriott, Jr. announced the ambitious goal of owning 2,000 hotels by the year 2000. This strategic goal guides Marriott’s aggressive hotel acquisition program and expands its reach. In early 1997, Marriott was on track with 1,300 hotels in 38 nations.
Division of labor: By systematically dividing complex tasks into specialized jobs, an organization can use its human resource efficiently. Division of labor permits each organization member to become more proficient by repeatedly doing the same specialized task. The dividing of labor has been known for a long time. One of its early proponents was the pioneering economist Adam Smith. While touring an eighteen-century pin-manufacturing plant, Smith observed that a group of specialized laborers could produce 48,000 pins a day. This was an astounding figure, considering that each laborer could produce only 20 pins a day when working alone.
Hierarchy of authority: According to traditional organization theory, if anything is to be accomplished formal collective effort, someone should be given the authority to see that the intended goals are carried out effectively and efficiently. Organization theorists have defined authority as the right to direct the actions of others. Without a clear hierarchy of authority, coordination of effort is difficult, if not impossible, to achieve. Accountability also is enhanced by having people serve in what is often called, in military language, the chain of command. For instance, a grocery store manager has authority over the assistant manager, who has authority over the produce department. Without such a chain of command, the store manager would have the impossible task of directly overseeing the work of every employee in the store.
Putting all the pieces together: Four of the foregoing characteristics are necessary before an organization can be said to exist. Many well intentioned attempts to create organizations have failed because something was missing. In 1896, for example, Fredrick Strauss, a boyhood friend of Henry Ford, helped Ford set up a shop, supposedly to produce gasoline-powered engines. But while Stress was busy carrying out his end of the bargain by machining needs parts, Ford was secretly building a horseless carriage in a workshop behind his house. Although Henry Ford eventually wants on to become an automobile-industry giant, his first attempt at organization failed because not all of the pieces of an organization were in place. Ford’s and his partner’s efforts were not coordinated, they worked at cross-purpose, their labor was vaguely divided, and they had no hierarchy of authority. In short, they had organizational intentions, but no organization.
Classifying Organizations
Because organizations are created to pursue particular purposes, they can classify according to their intended purpose. The classification by organizational purpose discussed here has four categories: business, nonprofit service, mutual-benefit and commonweal organizations. Some of today’s large and complex organizations overlap categories. For example, religious organizations are both nonprofit service organizations and mutual-benefit organizations, nevertheless classifying organizations by their purpose helps clarify the variety of roles they play in society and the similar problems shared by organizations with similar purpose.
Business organizations: business organizations such as General Milks, United Airlines and the Washington Post all have one underlying purpose: to make a profit in a society acceptable manner. Business cannot survive, let alone demand for products and services. This economic production function is important to society that many think immediately of business when the word management is mentioned.
Purpose Primary Common Overriding
Beneficiary Example Management problem
Business Owners Computer manufacturers Must make a profit
Fast-food
Newspaper
Restaurant chains
Nonprofit Clients Universities Must selectively screen
Service Welfare agencies large numbers of
Hospitals (nonprofit) potential clients
Mutual-benefit Members Unions Must satisfy members
Clubs needs
Political parties
Cooperatives
Commonweal Public at large Postal service Must provide
Police department standardized service
Fire department to large groups of
Public schools people with diverse
needs
Nonprofit service organization: Unlike business, many organizations survive and even grow, without making any profits at all. They need to be solvent, of course, but they measure their success not in dollars and cents but by hoe well they provide a specific service for some segment of society. The American Heart Association, Notre Dame University and Massachusetts General Hospital are example of nonprofit service organizations. Because the services of such organization are usually in great demand, one of their biggest problems lies in screening larges numbers of applicants to determine who qualifies for service.
Mutual-benefit organizations: Often, as in the case of labor unions or political parties, individuals join together strictly to pursue their own self-interests. In other cases the National Association of Manufacturers, for example- organizations may feel compelled to join together in an umbrella organization. Mutual-benefit organizations, like all other types of organizations, must be effectively and efficiently managed if they are to survive. In this instance, survival depends on satisfying the needs of the members.
Commonweal organizations: Like nonprofit service organizations, commonweal organizations offer public services without attempting to earn a profit. But, unlike nonprofit service organizations, which serve some segment of society, a commonweal organization offers standardized service to all members of a given population. The Canadian Army, for example, protects everyone within Canada’s border, not just a select few.
Formal Organization
Formal organization is a pattern of relationship and task define by official rules, policies and system.
Informal Organization
Informal organization is a network of personal and social relation not established or required by formal organization but arising spontaneously as people associate one another.
Types of Formal Organizations
Ø Line organization : The most simple form organization with no use of advisor and staff.
Ø Line and staff organization : Organization in which line managers make decision and staff personnel provide advice and support.
Ø Functional organization : Organization that give stuff personnel temporary and limited authority for specific task.
Ø Committee : A body of persons formed to managed and responsible for any specific administrative purpose.
Departmentation
Departmentation is the process of grouping jobs according to logical arrangement.
Types of Departmentation
Ø Customer departmentation : Grouping activities according to specific customer or customers’ group.
PresidentBy customer group
Customers
Commercial users
Manufacturers
Institutions
Ø Functional departmentation : Grouping jobs involving same and similar activities.
President
By function
Accounting
Human Resources
Finance
Marketing
Production
Ø Product departmentation : Grouping activities around products and product groups.
Marketing
manager
By product
Trade books
College texts
Technical books
Ø Location departmentation : Grouping jobs on the basis of define geographic areas.
By geographic location
Vice President
(International operations)
Canadian
Division
Japanese
Division
European
Division
Korean
Division
Reason of Departmentation
Ø Proper specialization
Ø Necessity of control
Ø For better coordination
Ø For special attention of activities
Ø To great competition among different department
Ø To consider local condition
Ø To give interest to executive’s interest
Advantages of departmentation
Ø Employees can develop skills in depth and can progress within a department as they master those skills.
Ø The company can achieve economics of scale in that it can centralized all the resource it needs and locate various experts in that area.
Ø There is good coordination within the function, and top management can easily direct and control various department activities.
Disadvantages of departmentation
Ø There may be a lack of communication among the different departments.
Ø Individual employees may begin to identify with their department and its goals rather than with the goals of organization as a whole.
Ø The company’s response to external change may be slow.
Span of Management
Span of management is the number of people who report to a particular manager.
Again spun of management and control means the number of subordinates a supervisor can supervise effectively.
Formula of A V Graicunas,
I = N (2^N/2+N-1)
Here, I = Total number of instruction with and among subordinates
N = Total numbers of subordinates
Organization with Narrow Spans
Advantages
Ø Close supervision
Ø Close control
Ø Fast communication between subordinates and supervisors
Disadvantages
Ø Supervisors tends to get too involved in subordinates’ work
Ø Many levels of management
Ø High cost due to many level
Ø Excessive difference between lowest level and top level
Organization with Wide Spans
Advantages
Ø Superior are forced to delegate
Ø Clear policies must be made
Disadvantages
Ø Technology of overloaded superiors to become decision bottlenecks
Delegation
Delegation is the process of assigning various degrees of decision making authority to lower level employee.
Reasons for Delegation
In effect a manager who delegate is sharing his workload with a subordinate in whom he has confidence. The main reasons why delegation is practiced are:
Ø A manager is relieved of some less important or less immediate tasks and thus has time for higher-level work.
Ø Delegation can be more efficient because decisions are taken lower down the hierarchy and communication delay are reduced or eliminated.
Ø Delegation is good training for junior personnel. They learn to make decision and to live with the consequences. It is more challenging for them.
Ø Delegation makes the organization more flexible and adaptable.
Ø Delegation satisfies ‘higher-order’ needs and is a necessary part of enrichment programmes and is consciously practiced by many organizations as part of staff development programmes.
Centralization
Centralization is defined as the relative relation of decision making authority by top management.
Decentralization
Decentralization is granting of decision making authority by management to lower level employees.
Matrix Organization
Matrix organization is a structure with both vertical and horizontal lines of authority.
Actually it’s a combination of functional and product forms of departmentation in the some organization structure.
Identifying Alternatives
- what are the most promising alternative
Considering planning premises
-In what environment we have to serve.
Setting objective or goals
- what we want to be.
Being aware of opportunity
-The market
-Competition
-What customers want
-Our weaknesses.
Number zings Plans by Making Budget.
Volume and price of sales operating expenses necessary for plans expenditures for capital equipment.
Comparing Alternative
-Which alternative will give us the best chance of meeting our goals at lowest cost?
Choosing an alternative
-Selecting the course of action we will pursue
Formulating Supporting Plans
-Bye equipment.
-Bye Material
- what are the most promising alternative
Considering planning premises
-In what environment we have to serve.
Setting objective or goals
- what we want to be.
Being aware of opportunity
-The market
-Competition
-What customers want
-Our weaknesses.
Number zings Plans by Making Budget.
Volume and price of sales operating expenses necessary for plans expenditures for capital equipment.
Comparing Alternative
-Which alternative will give us the best chance of meeting our goals at lowest cost?
Choosing an alternative
-Selecting the course of action we will pursue
Formulating Supporting Plans
-Bye equipment.
-Bye Material
May 17, 2010
To
Md. Amlan Jahid Hague
Lecturer
School of Business
Independent University, Bangladesh
Sub: Assignment submission
Sir,
We would like to request you to take our assignment which is a requirement of our course named ‘Principles of Management’ (MGT-201).
The assignment was all about a product planning and that finds the differences between the competitors of CSD market in Bangladesh. It was very interesting to do. We tried to give our best effort.
So, you would be kind enough to grant our assignment thinking about our limited time and resource. Please do contact for further clarification.
Sincerely yours
Group_E
Sec: 01
MGT-201
To
Md. Amlan Jahid Hague
Lecturer
School of Business
Independent University, Bangladesh
Sub: Assignment submission
Sir,
We would like to request you to take our assignment which is a requirement of our course named ‘Principles of Management’ (MGT-201).
The assignment was all about a product planning and that finds the differences between the competitors of CSD market in Bangladesh. It was very interesting to do. We tried to give our best effort.
So, you would be kind enough to grant our assignment thinking about our limited time and resource. Please do contact for further clarification.
Sincerely yours
Group_E
Sec: 01
MGT-201
ACKNOWLEDGEMENT
We are grateful to Allah, the Almighty for everything and to many individuals for the completion of the report successfully. They are both from Virgin and Independent University, Bangladesh who provided us with guidance and information for this study.
First of all, we would like to take this opportunity to express our heartfelt gratitude to our honorable course instructor Md. Amlan Jahid Haque, Lecturer, School of Business, Independent University, Bangladesh, for giving us the opportunity to experience of preparing a business report in real life situation. We also like to extend our gratitude to him for his expert supervision, constant guidance and inspiration during the preparation of the report. A chance like this was a golden opportunity for us to get in touch with the real marketplace.
We also like to thank Mr. Abul Quasem Haider, Chairman of Youth Group for helping us by giving us valuable information and time on behalf of their company and
Lastly, our heartiest thanks go to others who were involved and helped directly and indirectly in preparing this report. Without them this report wouldn’t be made possible.
We are grateful to Allah, the Almighty for everything and to many individuals for the completion of the report successfully. They are both from Virgin and Independent University, Bangladesh who provided us with guidance and information for this study.
First of all, we would like to take this opportunity to express our heartfelt gratitude to our honorable course instructor Md. Amlan Jahid Haque, Lecturer, School of Business, Independent University, Bangladesh, for giving us the opportunity to experience of preparing a business report in real life situation. We also like to extend our gratitude to him for his expert supervision, constant guidance and inspiration during the preparation of the report. A chance like this was a golden opportunity for us to get in touch with the real marketplace.
We also like to thank Mr. Abul Quasem Haider, Chairman of Youth Group for helping us by giving us valuable information and time on behalf of their company and
Lastly, our heartiest thanks go to others who were involved and helped directly and indirectly in preparing this report. Without them this report wouldn’t be made possible.
Cricket Histry
Cricket is a bat-and-ball sport contested by two teams, usually of eleven players each. A cricket match is played on a grass field, roughly oval in shape, in the centre of which is a flat strip of ground 22 yards (20.12 m) long, called a cricket pitch. A wicket, usually made of wood, is placed at each end of the pitch.
The bowler, a player from the fielding team, bowls a hard, fist-sized cricket ball from the vicinity of one wicket towards the other. The ball usually bounces once before reaching the batsman, a player from the opposing team. In defence of the wicket, the batsman plays the ball with a wooden cricket bat. Meanwhile, the other members of the bowler's team stand in various positions around the field as fielders, players who retrieve the ball in an effort to stop the batsman scoring runs, and if possible to get him or her out. The batsman — if he or she does not get out — may run between the wickets, exchanging ends with a second batsman (the "non-striker"), who has been waiting near the bowler's wicket. Each completed exchange of ends scores one run. Runs are also scored if the batsman hits the ball to the boundary of the playing area. The match is won by the team that scores more runs.
Cricket has been an established team sport for hundreds of years and more than 100 countries are affiliated to the International Cricket Council, cricket's international governing body. The sport's modern form originated in
The sport is followed with passion in many different parts of the world. It has even occasionally given rise to diplomatic outrage, notoriously the Basil D'Oliveira affair (which led to the banning of South Africa from sporting events) and the Bodyline Test series in the early 1930s (which led to a temporary deterioration in relations between Australia and the United Kingdom).
Overview
A traditional cricket ball. The white stitching is known as the seam. As one-day games are often played under floodlights, a white ball is used to aid visibility.
A traditional cricket ball. The white stitching is known as the seam.
As one-day games are often played under floodlights, a white ball is used to aid visibility.
A cricket bat, front and back.
A cricket bat, front and back.
The aim of the batting team is to score as many runs as possible. A run is scored when both batsmen successfully move to their respective opposite ends of the pitch. (The batsmen will usually only attempt to score runs after the striker has hit the ball, but this is not required by the rules—the batsmen can attempt runs at any time after the ball has been bowled.) Runs are also scored if the batsman hits the ball to the boundary of the playing area (this scores six runs if the ball crosses the boundary without having touched the ground, or four runs otherwise), or if the bowler commits some technical infringement like bowling the ball out of reach of the batsman.
The aim of the bowler's team is to get each batsman out (this is called a "taking a wicket", or a "dismissal"). Dismissals are achieved in a variety of ways. The most direct way is for the bowler to bowl the ball so that the batsman misses it and it hits the stumps, dislodging a bail. While the batsmen are attempting a run, the fielders may dismiss either batsman by using the ball to knock the bails off the set of stumps to which the batsman is closest before he has grounded himself or his bat in the crease. Other ways for the fielding side to dismiss a batsman include catching the ball off the bat before it touches the ground, or having the batsman adjudged " leg before wicket" (abbreviated "L.B.W." or "lbw") if the ball strikes the batsman's body and would have gone on to hit the wicket. Once the batsmen are not attempting to score any more runs, the ball is "dead", and is bowled again (each attempt at bowling the ball is referred to as a "ball" or a "delivery").
The game is divided into overs of six (legal) balls. At the end of an over another bowler from the fielding side bowls from the opposite end of the pitch. The two umpires also change positions between overs (the umpire previously at square-leg becomes the bowler's umpire at what is now the bowling end, and vice versa). The fielders also usually change positions between overs.
Taste & Quality
Fukruddin has being providing some delicious foods and products. Fukruddin foods and products are;
If I talk about taste & quality of those products then I should say excellent. If I compare with Hazi berany then we will get differences from Fukruddin. Fukruddin berany is so much fresh and lucrative and smell is very charming and attractive. When a person pick-up a piece of meat from the plat and eat it then he/she will get distinctive ingredients from others. That’s way customers are very satisfy in regarding those products of fukruddin`s. Sales are increasing day by day in domestic market and foreign market.
Quality is a global concern because customers are becoming aware about the products.
If I take into consideration in quality of foods, quality of environment, quality of employee those are standard and qualify. Employers of the fukruddin restaurant they are efficient and skilled enough to make such kind of foods. All the employers are taking training from the main branch for preparing & servicing the foods.
Distinctive Competences of Fukruddin Restaurant.
Quality and taste is so far different from others restaurant in Bangladesh. Distinctive Competences are;
1. Distinctive features (flavor, color & taste)
2. Distinctive ingredient (spice)
3. Trusty supplier
4. Brand reputation of Fukruddin
Those distinctive competences are made market leader of restaurant sector in Bangladesh.
REAL ESTATE DIVISION
OVERALL OPERATIONS
The year 2001 was not a propitious one for real estate business. First, it was an election year, an occasion for anxiety and people refrained from long term investments. The events of September 11 and its immediate effect, reduced foreign exchange earnings due to a steep fall in exports and remittances from overseas Bangladeshis further dampened prospects of new sales. Therefore, the company did not launch any new project either in the land or in the apartment sector. However it embarked on an active acquisition program to build up it's stock of land for future apartment and land sales projects.
APARTMENT PROJECTS
Shinepukur's construction of Manoshi Lake View project (MLVP) Phase - III made rapid progress with all the 3 buildings structural and brick works completed up to the 5th floor. The handover of the apartments will start by first week of January 2003. The Grand Terrace project Building - B with 43 apartments was handed over in 2001. Building - D with 55 apartments will be ready for handover by June 2003. The Mohona project, in Chittagong the 1st building with 37 apartments was handed over to their respective owners by December this year. Work in the second building is progressing smoothly.
PRESENT STATUS OF APARTMENT PROJECTS OF OUR COMPANY
The company has so far taken up a total of 10 apartment projects at different places of Dhaka and Chittagong Metropolitan cities. Name of Project Flat Size (in sft.) Price Range (Taka) Status Belvedere, Dhanmondi 2060 35,50,000 Completed & handed over Charmville, Green Road 1425-1660 21,50,000-24,50,000 Completed & handed over Manoshi Lake View, Mirpur 850-1294 11,00,000-16,90,000 In 1st phase 80 flats were handed over. In 2nd phase another 40 flats were handed over. Manoshi - Phase - III 924 13,00,000 In third phase 84 flats are under construction.
1294 16,90,000 Manoshi Tower, Mirpur 1075-1425 14,00,000-18,00,000 Construction of twelve-storied building of 54 flats delayed due to legal problem. Grand Terrace, Eskaton 1400-1880 24,50,000-32,00,000 Out of 196 flats, construction works of 98 flats are in advanced stage of which 43 are ready for habitation. Mohona, Chittagong 1420 21,00,000 Completed & handed over. Mohona - Phase - II 1420 24,00,000 Under construction Alindo, Dhanmondi 1600- 1700 31,50,000-33,50,000 Completed & handed over. Casaflores, Baridhara 3000 75,00,000 Completed & handed over. Melody, Gulshan 2750- 2900 63,00,000-66,00,000 Completed & handed over. Nandan, Hatkhola 1135- 1360 16,00,000-19,00,000 Under construction
ANNUAL REPORT 2001
SHINEPUKUR HOLDINGS LIMITED
15
JUTE DIVISION
OVERALL OPERATIONS
Despite declining world demand for woven carpets due to global economic recession, increased competition with more manufacturers as well as with cheaper synthetic yarn, our company performed better in 2001 compared to last year. During the year both our production and exports have increased. We have maintained our leadership position in the jute yarn & twine industry
by producing quality products & providing timely services to our customers. During the year we fully repaid the Janata Bank's BMR&E loan. At present, Jute Division has no long term loan outstanding with any financial institution/Bank. We are confident that, with a committed team
of competent professionals, our company will be able to retain its leadership position in the industry in the coming years also.
PROCUREMENT, PRODUCTION & EXPORT
There was a 'drought' during the jute sowing season of 2001. Also, carry over stocks from the previous crop year were significantly less. As a result, raw jute price was higher during the year. In fact, the availability of white jute and golden/bright colour of Tossa jute having strong fiber required for producing finer yarn, were scarce during the year. In spite of these, during the year, we could buy 11,269 M.Ton of raw jute at an average rate of Taka 21,024/M.Ton. Last year we procured 14,613 M. Ton of raw jute at an average price of Taka 20,083/M.Ton. Procurement of other materials like Jute Batching Oil, Starch, Enzyme, Dyes & Packing Materials were on time ensuring planned production & shipment of the goods. During 2001, our production volume increased to 12,591 M.Ton, by 2% over last year. Production capacity utilization in tonnage was almost 100%. Last year's production capacity utilization in tonnage was 98%. The range of counts produced during the year were between 6 Lbs to 260 Lbs, averaged at 13 Lbs. It may be mentioned that the present production capacity of our jute spinning mills, based on average
count of 12, is 42 M. Ton per day & 12,600 M.Ton per annum. In 2001, in addition to normal carpet yarn & twine for high-speed CRM & CRT looms, we also produced Bleached, Dyed, Polished & Coated yarn . The quality of our yarn & twine during the year was excellent and
to the satisfaction of the buyers. During 2001, we exported 12,579 M.Ton, valued US$ 9.003 million of jute yarn & twine which is 2.75% higher than last year (12,242 M.Ton). This was the largest volume of jute yarn & twine exported by our company in any 12 months since our company started exporting jute yarn & twine. The average FOB export price in US Dollar decreased to $ 611 (from last years $ 659), due to lower demand as well as increased competition. The economic recession in Japan & poor growth in European & Southeast Asian economies caused decline in demand for woven carpets. There were less than 30 jute yarn & twine manufacturers in the mid nineties in Bangladesh. By 2001, more than 50 jute & twine mills were manufacturing jute yarn & twine in Bangladesh. In India, besides large jute mills, mini jute yarn & twine mills have been set up to produce jute yarn & twine for export. Synthetic yarns are being produced at a cheaper rate to substitute the jute yarn. As a result, the price of jute yarn & twine has been gone down.
Corporate Governance
T he maintenance of effective corporate Governance remains a
key priority to the Board of Shinepukur Holdings Limited. Recognizing the importance of it, the board and other senior management remained committed to high standards of corporate Governance. To exercise clarity about Directors' responsibilities towards the Shareholders, Corporate Governance must be dynamic and focus to the Business objectives of the company and be reinforced by a culture of openness and clear accountability. Keeping
this in mind, there are clear structure and accountabilities supported by well understood policies and procedures to guide the activities of company's management, in its day-to-day business and in the areas associated with internal control.
INTERNAL FINANCIAL CONTROL
The Directors are responsible for the Company's system of Internal Financial Control. Although no system of internal control can provide absolute assurance against material misstatement and loss, the company's system is designed to provide the directors with reasonable assurance that problems are timely identified and dealt with appropriately. Key procedures to provide effective internal financial control can be described in following areas: Management Structure: Shinepukur Holdings Ltd. has two business operating divisions, namely - Jute Division & Real Estate Division. These divisions are independently managed and all the books of accounts including those required under section 181 of the companies Act 1994 are maintained separately for each division. These divisions are operating a well defined management structure headed by Chief Executive Officers under whom there are various departmental heads and according to hierarchy, various senior and mid level management staffs and departmental head meet at regular interval. Financial Reporting: There are comprehensive management reporting disciplines with involve the preparation of annual budget by all operating departments. Executive management reviews the
budgets and actual results are reported against the budget and revised forecasts are prepared at regular interval. As s e t Ma n a g eme n t : The company has sound asset management policy, which reasonably assures the safeguarding of assets against unauthorised use or disposition. The company also follows proper records and policy regarding capital expenditures. Functional Reporting: In pursuance with keeping the reliability of financial information used within the business or for publication, the management has identified some key areas which are subject
to monthly reporting to the CEOs'. These include monthly treasury operations, financial statements. Other areas are also given emphasis by reviewing on quarterly basis. These include
information strategy, environmental matter and insurance matter.
BOARD
The Board of Directors: The Board of Directors is responsible to the shareholders for the strategic development of the company, the management of the company's asset in a away that maximizes
performance and the control of the operations of the business. The Board of Directors is responsible for approving company policy and is responsible to shareholders for the company's financial and operational performance. Responsibility for the development and implementation of company policy and strategy, day-to-day operational issues in delegated by the Board to the management of the company. Board structure and procedure: The membership of the Board during the year ended 31 December 2001 and 2000 stood at four Directors, which is higher than the legal minimum requirement of three Directors. The Shareholders appoint the Directors in general meeting and through them exercise their control and proprietorship over the company. The Company's Board currently comprises the Chairman and other three Directors. Of the other three Directors one is nominated by Beximco Holdings Limited and another one is nominated by NewDacca Industries Limited (who is also Managing Director of the company). The name of the Directors appears on page 5. The quorum for the Board is at least three Directors present in person. Appraisal Review Board: Appraisal review Board annually appraises the performances of every level of employees as per established policy. It determines the annual increment, promotion and parameter of remuneration for all level of management for the respective divisions. The Chief Executive officers heads the Board with member for Human resource department and departmental heads. Going Concern After making appropriate enquires at the time of approving the financial statements the directors are convinced that the Company has adequate resources to carry out its operational existence for the foreseeable future and that it is therefore appropriate to adopt going concern basis in preparing the financial statements.
OTHER
Relations with shareholders: The Annual General Meeting is used as an important opportunity for communication with both institutional and general shareholders. In addition, the company maintains relations with its Shareholders through the corporate affairs secretarial department.
.
OVERALL OPERATIONS
The year 2001 was not a propitious one for real estate business. First, it was an election year, an occasion for anxiety and people refrained from long term investments. The events of September 11 and its immediate effect, reduced foreign exchange earnings due to a steep fall in exports and remittances from overseas Bangladeshis further dampened prospects of new sales. Therefore, the company did not launch any new project either in the land or in the apartment sector. However it embarked on an active acquisition program to build up it's stock of land for future apartment and land sales projects.
APARTMENT PROJECTS
Shinepukur's construction of Manoshi Lake View project (MLVP) Phase - III made rapid progress with all the 3 buildings structural and brick works completed up to the 5th floor. The handover of the apartments will start by first week of January 2003. The Grand Terrace project Building - B with 43 apartments was handed over in 2001. Building - D with 55 apartments will be ready for handover by June 2003. The Mohona project, in Chittagong the 1st building with 37 apartments was handed over to their respective owners by December this year. Work in the second building is progressing smoothly.
PRESENT STATUS OF APARTMENT PROJECTS OF OUR COMPANY
The company has so far taken up a total of 10 apartment projects at different places of Dhaka and Chittagong Metropolitan cities. Name of Project Flat Size (in sft.) Price Range (Taka) Status Belvedere, Dhanmondi 2060 35,50,000 Completed & handed over Charmville, Green Road 1425-1660 21,50,000-24,50,000 Completed & handed over Manoshi Lake View, Mirpur 850-1294 11,00,000-16,90,000 In 1st phase 80 flats were handed over. In 2nd phase another 40 flats were handed over. Manoshi - Phase - III 924 13,00,000 In third phase 84 flats are under construction.
1294 16,90,000 Manoshi Tower, Mirpur 1075-1425 14,00,000-18,00,000 Construction of twelve-storied building of 54 flats delayed due to legal problem. Grand Terrace, Eskaton 1400-1880 24,50,000-32,00,000 Out of 196 flats, construction works of 98 flats are in advanced stage of which 43 are ready for habitation. Mohona, Chittagong 1420 21,00,000 Completed & handed over. Mohona - Phase - II 1420 24,00,000 Under construction Alindo, Dhanmondi 1600- 1700 31,50,000-33,50,000 Completed & handed over. Casaflores, Baridhara 3000 75,00,000 Completed & handed over. Melody, Gulshan 2750- 2900 63,00,000-66,00,000 Completed & handed over. Nandan, Hatkhola 1135- 1360 16,00,000-19,00,000 Under construction
ANNUAL REPORT 2001
SHINEPUKUR HOLDINGS LIMITED
15
JUTE DIVISION
OVERALL OPERATIONS
Despite declining world demand for woven carpets due to global economic recession, increased competition with more manufacturers as well as with cheaper synthetic yarn, our company performed better in 2001 compared to last year. During the year both our production and exports have increased. We have maintained our leadership position in the jute yarn & twine industry
by producing quality products & providing timely services to our customers. During the year we fully repaid the Janata Bank's BMR&E loan. At present, Jute Division has no long term loan outstanding with any financial institution/Bank. We are confident that, with a committed team
of competent professionals, our company will be able to retain its leadership position in the industry in the coming years also.
PROCUREMENT, PRODUCTION & EXPORT
There was a 'drought' during the jute sowing season of 2001. Also, carry over stocks from the previous crop year were significantly less. As a result, raw jute price was higher during the year. In fact, the availability of white jute and golden/bright colour of Tossa jute having strong fiber required for producing finer yarn, were scarce during the year. In spite of these, during the year, we could buy 11,269 M.Ton of raw jute at an average rate of Taka 21,024/M.Ton. Last year we procured 14,613 M. Ton of raw jute at an average price of Taka 20,083/M.Ton. Procurement of other materials like Jute Batching Oil, Starch, Enzyme, Dyes & Packing Materials were on time ensuring planned production & shipment of the goods. During 2001, our production volume increased to 12,591 M.Ton, by 2% over last year. Production capacity utilization in tonnage was almost 100%. Last year's production capacity utilization in tonnage was 98%. The range of counts produced during the year were between 6 Lbs to 260 Lbs, averaged at 13 Lbs. It may be mentioned that the present production capacity of our jute spinning mills, based on average
count of 12, is 42 M. Ton per day & 12,600 M.Ton per annum. In 2001, in addition to normal carpet yarn & twine for high-speed CRM & CRT looms, we also produced Bleached, Dyed, Polished & Coated yarn . The quality of our yarn & twine during the year was excellent and
to the satisfaction of the buyers. During 2001, we exported 12,579 M.Ton, valued US$ 9.003 million of jute yarn & twine which is 2.75% higher than last year (12,242 M.Ton). This was the largest volume of jute yarn & twine exported by our company in any 12 months since our company started exporting jute yarn & twine. The average FOB export price in US Dollar decreased to $ 611 (from last years $ 659), due to lower demand as well as increased competition. The economic recession in Japan & poor growth in European & Southeast Asian economies caused decline in demand for woven carpets. There were less than 30 jute yarn & twine manufacturers in the mid nineties in Bangladesh. By 2001, more than 50 jute & twine mills were manufacturing jute yarn & twine in Bangladesh. In India, besides large jute mills, mini jute yarn & twine mills have been set up to produce jute yarn & twine for export. Synthetic yarns are being produced at a cheaper rate to substitute the jute yarn. As a result, the price of jute yarn & twine has been gone down.
Corporate Governance
T he maintenance of effective corporate Governance remains a
key priority to the Board of Shinepukur Holdings Limited. Recognizing the importance of it, the board and other senior management remained committed to high standards of corporate Governance. To exercise clarity about Directors' responsibilities towards the Shareholders, Corporate Governance must be dynamic and focus to the Business objectives of the company and be reinforced by a culture of openness and clear accountability. Keeping
this in mind, there are clear structure and accountabilities supported by well understood policies and procedures to guide the activities of company's management, in its day-to-day business and in the areas associated with internal control.
INTERNAL FINANCIAL CONTROL
The Directors are responsible for the Company's system of Internal Financial Control. Although no system of internal control can provide absolute assurance against material misstatement and loss, the company's system is designed to provide the directors with reasonable assurance that problems are timely identified and dealt with appropriately. Key procedures to provide effective internal financial control can be described in following areas: Management Structure: Shinepukur Holdings Ltd. has two business operating divisions, namely - Jute Division & Real Estate Division. These divisions are independently managed and all the books of accounts including those required under section 181 of the companies Act 1994 are maintained separately for each division. These divisions are operating a well defined management structure headed by Chief Executive Officers under whom there are various departmental heads and according to hierarchy, various senior and mid level management staffs and departmental head meet at regular interval. Financial Reporting: There are comprehensive management reporting disciplines with involve the preparation of annual budget by all operating departments. Executive management reviews the
budgets and actual results are reported against the budget and revised forecasts are prepared at regular interval. As s e t Ma n a g eme n t : The company has sound asset management policy, which reasonably assures the safeguarding of assets against unauthorised use or disposition. The company also follows proper records and policy regarding capital expenditures. Functional Reporting: In pursuance with keeping the reliability of financial information used within the business or for publication, the management has identified some key areas which are subject
to monthly reporting to the CEOs'. These include monthly treasury operations, financial statements. Other areas are also given emphasis by reviewing on quarterly basis. These include
information strategy, environmental matter and insurance matter.
BOARD
The Board of Directors: The Board of Directors is responsible to the shareholders for the strategic development of the company, the management of the company's asset in a away that maximizes
performance and the control of the operations of the business. The Board of Directors is responsible for approving company policy and is responsible to shareholders for the company's financial and operational performance. Responsibility for the development and implementation of company policy and strategy, day-to-day operational issues in delegated by the Board to the management of the company. Board structure and procedure: The membership of the Board during the year ended 31 December 2001 and 2000 stood at four Directors, which is higher than the legal minimum requirement of three Directors. The Shareholders appoint the Directors in general meeting and through them exercise their control and proprietorship over the company. The Company's Board currently comprises the Chairman and other three Directors. Of the other three Directors one is nominated by Beximco Holdings Limited and another one is nominated by NewDacca Industries Limited (who is also Managing Director of the company). The name of the Directors appears on page 5. The quorum for the Board is at least three Directors present in person. Appraisal Review Board: Appraisal review Board annually appraises the performances of every level of employees as per established policy. It determines the annual increment, promotion and parameter of remuneration for all level of management for the respective divisions. The Chief Executive officers heads the Board with member for Human resource department and departmental heads. Going Concern After making appropriate enquires at the time of approving the financial statements the directors are convinced that the Company has adequate resources to carry out its operational existence for the foreseeable future and that it is therefore appropriate to adopt going concern basis in preparing the financial statements.
OTHER
Relations with shareholders: The Annual General Meeting is used as an important opportunity for communication with both institutional and general shareholders. In addition, the company maintains relations with its Shareholders through the corporate affairs secretarial department.
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1976 : Registration of the company
1980 : Started manufacturing and marketing of licensee products of Bayer AGof Germany and Upjohn Inc. of USA 1985 : Listing in the Dhaka Stock Exchange (DSE) as a Public Limited Company (PLC) 1990 : Commissioning of Basic Chemical unit
1992 : Started export operation with Active Pharmaceutical Ingredients (APIs)
1993 : First export market operation with finished pharmaceutical products
1994-95 : Achievement of National Export Trophy (Gold) as the first
pharmaceutical company of the countryIntroduction of 20 new products
1996 : Introduction of Sustained Release dosage form in the market
Introduction of 12 new products
1997 : Commissioning of Metered Dose Inhaler (MDI) plant and introduction ofSuppository dosage form Introduction of 15 new products
1998 : Introduction of Metered Dose Nasal Spray Introduction of 13 new products
1999 : UNICEF approval of BPL as an enlisted supplier Introduction of 6 new products
2000 : Contract manufacturing agreement of Metered Dose Inhaler (MDI) with Glaxo SmithKline Introduction of 11 new products
2001 : Introduction of small volume parenteral products (Injectables) Establishment of Analgesic-Antiinflammatory plant Introduction of 26 new products
Beximco Pharma
The leading healthcare company in Bangladesh
Beximco Pharmaceuticals Ltd. is the leading pharmaceutical company of Bangladesh. Founded in 1976, Beximco Pharmaceuticals Ltd. has been producing world class pharmaceutical products following current Good Manufacturing Practice (cGMP) as required by the World Health Organization (WHO) in order to improve health, happiness and quality of life. Beximco Pharmaceuticals Ltd. has products of different therapeutic classes, each of which, occupies a prominent position in the market and the heart of our customers and shareholders. Beximco Pharmaceuticals Ltd. is always committed to improve the lives of people through the development and commercialization of high quality and cost-effective medicines. Noted for our market driven approach, BPL is also known for constructive endeavor to innovation that is usually the result of very extensive product testing and market research. As a market oriented organization, we develop a culture, that is fully committed to the continuous creation of superior customer value.
We strongly believe that quality makes the difference between life and death. After successful venturing in the local market, we have now taken the challenge to replicate the journey into the international arena. Being a responsible leader we take everything quite seriously. We don’t simply believe in introducing new molecules; we also believe in creating the difference in the marketplace by offering impeccable quality. BPL stands on the heritage of bringing innovative medicine to people. One of our key guiding principles is to operate through "customer channels". We put the customer at the center of all our activities. Commitment to our customers is one of the hallmarks of BPL. Our products are all intended to help people to live healthy lives. BPL’s portfolio features a range of high-quality, effective products, some are the first of their kind and many are ranked number one in their therapeutic area. A team of highly qualified people sets our product features and attributes. Arts and science are blended together inside our products. Our products are designed and engineered in such a manner that their overall presentation, size, shape, color, flavor, viscosity, coating etc. are completely different from those of the competitors. Formula E is formulated with an excellent chocolate taste. Ascobex and Carocet are the best tasting drugs in their respective categories. Aristovit B and Aristovit M are the most elegant drugs in their categories in the country. Whatever may be the dosage form or packaging – blister, strip, bottle, cartons, labels etc., BPL’s presentations are widely recognized for their best aesthetic look among all competitive brands.
Products
Simply make the difference
Diversification
Small Volume Parenteral (SVP) products
The strength of Beximco Pharmaceuticals Ltd. lies in its diversified products and dosage forms. BPL has been producing solid products like tablets and capsules and liquid products like syrup, suspension and solution, as well as semisolid products like cream and ointment. We are the pioneer company to manufacture and market nasal sprays, inhalation aerosols and suppositories in Bangladesh. In 2001, Beximco Pharmaceuticals Ltd. stepped into a new path--bringing Small Volume Parenteral (SVP) or injectable dosage form. Arixon is our first small volume injectable product. It is a preparation of Ceftriaxone, which is considered as a breakthrough antibiotic in the history of medicine, particularly because it is safe to be used in children as well as adults. Arixon is also the first injection in Bangladesh to offer four-layer protection against counterfeit—flipoff cap, aluminum seal with imprinted brand name, blister pack and security seal on commercial pack. In 2002, Arixon is predicted to be one of our leading brands in terms of sales revenue. As the second step, we introduced Intracef injection, a preparation of Cephradine. Intracef is a renowned brand and already available as capsule, suspension and pediatric drops. Launching of Intracef injection further strengthens the brand and offers an opportunity to promote the different dosage forms in one promotional
exposure. Arixon and Intracef injection are our first SVP products and we will introduce other exciting products in the future.
New products
In the year 2001, BPL added 26 new products of different therapeutic classes in its portfolio and these products are highly appreciated by the health professionals. Most important of them are Triocim, Arixon, Prosan, Recox, Atova etc. Introduction of these new products enriched our product portfolio and is contributing to our sales significantly.
Increasing trends in
product offerings…
….reflects our relentless effort to provide better health care services to our valued customers.
Training
Getting the best from our people
One of the agenda of the Human Resources Department is continuous development
of the employees so that they can cope with the rapidly changing business environment. Innovation is a major priority that we want to promote. Accordingly, training programs are regularly undertaken for the staff to seek opportunities for skills improvement. In 2001, employees of BPL have participated in various training programs both external and internal. There were 6 (six) induction training for the field force, 4 (four) in-house training and 2 (two) external training for employees of the Head Office during this period. Factory personnel also attended in-house training programs of a total 206 hours duration.
Major in-house and
external training programs
Title of the training
Managerial style Personal values questionnaire Learning style inventory
Learning skills profile Management workshop for women executive
Sales management Training on GMP, Process validation, SOPs and documentation Audio visual training on GMP for MDI plant Total Quality Management (TQM) Integrated material management Occupational health & safety Course leaders courses Experts from inside and outside the organization worked as our resource personnel for the training programs. All of these training programs were found highly effective in developing our peoples’ knowledge, skill and abilities to perform their assigned jobs in a better way.
Overseas Business
Striving for excellence
Overseas business has always been one of the top priorities of Beximco Pharma. By making the best use of our competency & edge in manufacturing technology and marketing skills, BPL has been able to establish a very successful international marketing network in Asia, Middle East and Africa. So far, Beximco Pharma has
marked its presence in 16 countries and in last few years, BPL has been putting its best efforts to continue this process. In the year 2001, BPL’s major emphasis in overseas markets was basically directed towards achieving a critical mass in these markets and to build brand equity of our products. In fact, last year was another very successful year for us in terms of achieving our objectives in the overseas markets. In 2001, we have signed an agreement with one of the leading distributors of Singapore with an objective to consolidate our presence in Singapore market. BPL’s specialized products like Inhalers, Nasal Sprays and Suppositories as well as solid dosage forms have already gained remarkable brand equity in Singapore. In Pakistan, we came into an agreement with one of the leading local companies to manufacture BPL brands locally and to market the same in Pakistan market. Local manufacturing of BPL brands is expected to give us substantial headway and edge in terms of overcoming competition in Pakistan. Apart from all these, we have intensified and consolidated our marketing efforts in other overseas markets, like Myanmar, Kenya, Yemen and Vietnam. To capitalize immense opportunities in these overseas markets, we are bringing in more new and exciting brands in these markets. Last year, BPL donated one ‘Medical Information K i o s k ’ to the Myanmar Medical Association of Mandalay which gained enormous attention and acceptance in the minds of the medical community of M y a n m a r. In Kenya, number of sales people has been increased to best exploit its huge market potentials. All these efforts are already bringing in desired results. Entering into new horizons and establishing new overseas markets will remain our top most priority in 2002 also. Russia, Ukraine, Sri Lanka, Cambodia, Nepal will be on the list. We are confident that our process of globalization will continue with a more and more accelerated speed in the coming days.
Fine Chemicals
Committed to supply quality products
BPL has a commitment to the society to supply world class Active Pharmaceutical
Ingredients (APIs). Therefore, BPL is not only engaged in formulations but also in fine
chemicals business with a view to supplying cost effective quality materials to other
local companies as well as for captive consumption.
As one of the most important profit centres of Beximco Pharmaceuticals Ltd., Fine
Chemicals department is involved in producing and marketing of A c t i v e
Pharmaceutical Ingredients (APIs) to the local market. It caters to almost 60% of the
demand of Amoxycillin bulk in Bangladesh.
The major products of Fine Chemicals are Amoxycillin and Ampicillin. An entirely
new bulk drug facility is being set up to produce high value and exciting new drugs.
Beximco Pharmaceuticals Ltd. has already developed some Active Pharmaceutical
Ingredients (APIs) in antibiotics, antifungal, analgesic, antihistamine, antii
n f l a m m a t o r y, antihypertensive and other therapeutic classes in a separate
multipurpose plant to meet its own requirement and also to meet the local demand
of other pharmaceutical manufacturers.
The company has acquired an outstanding ability of transforming technological
know-how into commercially viable products through in-house expertise and use of
international consultants.
BPL’s first venture into export markets started with the export of fine chemicals in
1990. Since then it has exported to a number of countries like Vietnam, Singapore,
Germany, Russia, Hongkong, Iran, South Korea etc.
The company firmly believes that, introduction of more new molecules will enable
it to expand and further strengthen its presence in local as well as international
markets thereby contributing significantly to the growth of the company’s profit.
1990 : In this year, Basic Chemical plant was established and on
September 01, 1990 commercial production of Amoxycillin
and Ampicillin was started.
1996 : In October 1996, Multipurpose Plant was established.
2001 : In March 2001, Cox Block plant was established.
Technology
Keeping pace with the advanced world
Technology carries the promise of tomorrow. The benefits of technology
belong to all of us -benefits that create new opportunities and open doors to
a better life. For example, the new inhaler plant of BPL has been designed
in a way to ensure highest-possible quality at every stage of manufacturing
and quality control. World-class facilities are being employed in each and
every step including mixing, filling, testing, labelling, batch printing and
other procedures to ensure manufacturing of world class products.
Quality
We try to achieve zero defect
At BPL, total quality control refers to the process of producing a perfect product by
a series of measures. This requires an organized effort by the entire company to
prevent or eliminate errors at every stage in production. It is supported by a team
effort. Our quality assurance establishes control or checkpoint to finally ensure the
quality of the products during production and upon completion of the
manufacturing. It starts with raw materials and component testing and includes inprocess,
packaging, labelling and finished product testing as well as batch auditing
and stability monitoring.
A highly dedicated academically sound and professionally competent team
comprising of pharmacists, chemists, biochemists, microbiologists, engineers &
others is making relentless efforts to offer the best in terms of product quality.
In every step, from the procurement of raw materials to the manufacturing of finished
products, the latest World Health Organization (WHO) approved current Good
Manufacturing Practices (cGMP) are being followed. There are written Standard
Operating Procedures (SOPs) for every process and step involved which are being
closely monitored to ensure that all concerned personnel are complying with these
procedures.
BPL’s Q.C. lab is well equipped with most modern and sophisticated equipment like,
High Performance Liquid Chromatography (HPLC), Infrared (IR) Spectrophotometer,
Ultraviolet (UV) Spectrophotometer, Homogenizer, In-vitro Bioavailability Tester,
Lung Simulator, Disintegrator, Dissolution Tester & many other latest computer aided
instruments & accessories to ensure the highest quality products.
Environment
Health and
Safety
We are continuously thriving to protect
the environment and ensure the safety
and health of our employees and
communities where we operate. At BPL,
we work to enhance protection of the
environment, and the safety and health of
our neighbours, our customers and our
employees. It is always monitored that
concerned people wear appropriate and
designated dresses like gowns, aprons,
masks, helmets etc.
BPL is very careful in discharging the
wastes that are generated from any of its
operation. To ensure this, regular
environmental monitoring of emissions is
being carried out. BPL is continuously
striving to minimize adverse impacts on
environment and to ensure total
environmental protection by minimizing
waste generation and improving the
monitoring system.
The New Formulation Plant
Beximco Pharmaceuticals Ltd. has been preparing itself for the post-WTO open
market competition. It has all the courage to compete with world leaders in
pharmaceuticals business when the tariff and non-tariff barriers will be withdrawn.
BPL has placed itself in the virtual future, extending several years beyond today. That
is why, a multi-million dollar pharmaceutical formulation plant is being built.
BPL Management decided to construct a new manufacturing plant according to
USFDA standard. This world class facility is structured and erected in line with
International Guidelines for cGMP and with particular regard to the FDA (Food and
Drug Administration Authority) of the USA. It incorporates modern technological
advancements in materials storage, handling, transfer and movement.
To meet specific cGMP requirements for the USA & European markets, all walls
within the facility are made of preformed powder coated Sandwich Panels giving a
smooth and easily cleanable surface free of cracks or crevices. The ceiling is
constructed of the same material and has been designed as a "Walk-on" ceiling. The
wall and ceiling joints are finished with powder coated aluminium coves. All floors
throughout the facility are of Self-Levelling Epoxy (SLE) providing a hard impact and
chemical resistant floor. All corners between the floor and walls are finished with
coves made from special epoxy coving material.
The huge & extensive civil & electrical work of the plant has already been
completed. Installation of some of the world’s most advanced and sophisticated
machineries is underway. The new USFDA standard plant is planned to be
operational in early 2003. Once completed, this will be one of the finest facilities to
be available anywhere in the globe.
Management
Development
Training
The continuous training program of Beximco Pharmaceuticals Ltd. has been
strengthened in 2002. In-house courses and participation in external workshops,
both within Bangladesh and abroad, have been intensified in 2002. A dedicated
training room is available at both the head office and the factory premises for
imparting general and technical training. Managers have also participated in a series
of management development program at the Hyderabad campus of the Indian
School of Business (ISB) whose faculty includes faculty members from Kellogg
University in USA and the London School of Business. An active, round the year
human resources development will be aggressively pursued by the company to raise
its intellectual capital constantly.
Beximco Pharmaceuticals Limited
Notice of The Twenty - Sixth Annual General Meeting
A G E N D A
Sd/-
( MD. ASAD ULLAH )
Company Secretary
Dated : May 06, 2002
The Register of Members and Share Transfer Book of the Company will remain closed from 5th
June, 2002 to 29th June, 2002 (both days inclusive). During that period no share transfer will be
effected. The Shareholders whose names will appear in the Share Register of the Company at the
close of business on 4th June, 2002 will be entitled to the dividend.
A member entitled to attend and vote at the General Meeting may appoint a proxy to attend and
vote in his/her stead. The Proxy Form, duly stamped, must be deposited at the Registered Office
of the Company not later than 48 hours before the time fixed for the meeting.
Members are requested to notify change of address, if any, to the Company.
Admission to the meeting room will be strictly on production of the attendance slip sent with
the Notice.
(1)
(2)
(3)
(4)
NOTES :
To confirm the proceedings of the Twenty-Fifth Annual General Meeting of the Company held
on 24th June, 2001.
To receive, consider and adopt the Audited Accounts as of 31st December, 2001 together with
reports of the Auditors and the Directors thereon.
To elect Directors.
To declare dividend @10%.
To appoint Auditors for the year 2002 and to fix their remuneration.
To transact any other business of the Company with the permission of the Chair.
By order of the Board
Notice is hereby given that the TWENTY-SIXTH ANNUAL GENERAL MEETING of the Shareholders
of Beximco Pharmaceuticals Limited will be held on Saturday, the 29th June, 2002 at 10:30 a.m. at
1, Shahbagh C/A, Dhaka to transact the following business :
17 Dhanmondi R/A, Road No. 2, Dhaka 1205
Chairman’s Statement
It is indeed my pleasure to welcome you all to the 26th Annual General Meeting of your
company. I take this opportunity to lay before you a brief resume of the affairs of the
company for the year 2001 and its future plan.
2001 Performance
During the year, the company attained net sales of Tk. 2,401.24 million as against Tk.
2,452.52 million of 2000. I am pleased to inform that sales of the formulation products
- our core business, continued to grow in 2001 as well. During the year local sales of
formulation products increased by 3.68% in Taka. Our export sales for the year also grew
by 6.91%. The overall slight decline in sales is however, mainly due to the decline in the
sales of our basic chemicals products. Our major basic chemical products-Amoxicillin
and Ampicillin are matured products. Because of emergence of several other
manufacturers and increase in the cost due to consecutive devaluation, the profit margin
of these products have squeezed substantially. Considering this, we are now in the
process of introducing a few high-value high-margin products in the basic chemical’s
portfolio to reverse the sales decline.
Your company earned a pre-tax profit of Tk. 430.42 million as against 422.64 million of
2000. As you know almost 72% of our raw materials are imported. After several
devaluation of taka against dollar, these materials have become costlier. But due to our
committed drive for containment of cost, we have succeeded in neutralizing the adverse
effect of devaluation. Our gross profit increased by 5.17% and pre-tax profit by 1.84%
over last year in absolute terms. This by any standard is an appreciable achievement.
Products
Consistent to our committed efforts to cater to the health care needs of the country, 26
new products have been added to the existing product portfolio during the year under
review. The products have got wide acceptance from the medical community. As a result
Triocim, Prosan, Recox, Atova, etc. have already placed themselves in good positions in
the market within a short period of time.
Another milestone achievement was the launching of injectable products. For the first
time we entered into small volume parental products’ market with Arixon.
Our blockbuster product Napa continued to retain the number one position since 1990.
In Antiulcerants category, Neoceptin R succeeded in remaining the market leader in
2001 as well.
New Inhaler Plant
I feel proud to announce that BPL’s Inhaler plant with world class manufacturing facilities
has commenced commercial operation in 2001. This State of the Art Plant has already
drawn interest from different quarters for its high technical standards. Successful
implementation of such a high standard manufacturing facility is yet another landmark
contribution from BPL in the healthcare system of the country. Cost effective improved
quality medicines at affordable prices are now available to replace the more expensive
and imported ones.
Expansion Program
The works of the expansion project is in progress. The planned target of opening of LC
for the Machinery and Equipment was slightly impaired due to time escalation in
releasing the Consortium Loan. Additionally, before entering into any contract we also
wanted to ensure that the sources of supply we are considering are fully capable to
deliver equipments complying to the US FDA standard. In this regard we sought the
support and assistance of relevant international consultants. Every thing is now on track
and we expect to go into commercial operation of the new plant by early 2003.
In addition to the manufacturing and physical infrastructure facilities we are upgrading
ourselves equally in other areas including development of human resources, training on
cGMP Standards, etc.
Looking Ahead
With the implementation of WTO provisions the global business particularly the
pharmaceutical business of the developing countries are going to face a new challenge.
We are mindful of the challenges but at the same time confident of our ability to succeed.
Our drive for both short and long run revenue and earning growth will continue in the
future as well. Profitable product lines will be strengthened. Investment in introducing
new products, molecules and dosage forms will be further enhanced. Recognising the
needs of today’s healthcare market place, our marketing strategy will continue to focus
on value added but cost effective medicines. Along with expanding our share in the
domestic market, we will continue to aggressively pursue our search for new avenues in
the international marketplace also, in the days ahead. Our achievements so far have
paved the way in this direction.
Dividend
As you all know the WTO agreement is changing the global business environment. The
pharmaceuticals business is becoming more complex and competitive particularly due
to the WTO-TRIPs agreement. Changes in the international patent law are going to make
the local manufacture of patented drugs very difficult and very costly. To face the new
challenges we are making investment keeping in view the long term objectives of
sustainable development and growth in revenue and profits in the difficult years ahead.
This has compelled us to make more investments in areas like product research and
development, creation of backward linkage facility, development of existing production
facilities, etc. in addition to our major investment in the US FDA standard plant.
Over the last two to three years the number of our new products has also increased
substantially. In 2001 alone we have introduced 26 new products. Moroever, 70 new
products are in pipeline. As you may be aware, introduction of a new product and its
initial marketing requires a substantial amount of cash investment. Besides, addition of
new products in the product line raises the working capital needs quite significantly. Our
working capital credit limits have not been extended since 1999 although our business
has substantially grown over these years.
In this backdrop your board of directors have found it prudent to propose a dividend @
10% this year instead of the 20% of the previous year.
Contribution to National Exchequer
During year 2001 Beximco Pharmaceuticals Limited has contributed Tk. 426 million to
the national exchequer in the form of import related taxes, Value Added Tax and Income
Tax.
Environment
Our commitment for eco-friendly environment is recognized. We continued to put our
best efforts to keep our environment free from pollution. We use environment friendly
technologies and comply fully with the environmental codes to keep the environmental
effect of our manufacturing activities to the acceptable level. Education and training for
raising the environmental awareness levels of our employees is a continuous process
within BPL.
Social Commitments
As in the past, BPL actively participated in various social awareness building programs
in 2001 as well. BPL jointly with Beximco Infusions limited provided support in various
activities undertaken on occasions like World Health Day, World Breast Feeding Day,
etc. The company also sponsored supplements in the national dailies on health care
awareness development issues.
Acknowledgement
On this occasion, I would like to recall with appreciation and thanks the support and cooperation
we have received from our bankers, our suppliers, our customers, the
regulatory bodies, the persons concerned in the various government agencies and
various people with whom we have interacted in the conduct of our business. I am
highly appreciative of our valued shareholders for the confidence they have placed on
us and the invaluable support they have extended to us.
I on behalf of your board of directors express my sincere thanks to all of you and look
forward for your continued support and co-operation in future.
Statement on Corporate Governance
Good corporate governance is an issue of key focus to the management and board of Beximco
Pharmaceuticals Limited. We place greatest emphasis on maintaining the highest standard of corporate
governance. The statement below describes how the principles of good governance is applied in BPL.
Board and Its Composition
The board of directors is the highest level of authority in the organization structure of BPL. The board is
responsible for the overall direction and is ultimately accountable to the shareholders for the activities,
strategies and performance of the company. Currently, the board of directors of BPL comprises of nine
members with Mr. A S F Rahman as Chairman and Mr. Salman F Rahman as Vice Chairman.
Board’s Functioning Process
The board meets frequently to deal with issues that require board’s approval and/or direction. To enable
the board to function effectively and allow directors to discharge their responsibilities efficiently, full and
timely information is made available to them by the professional managers of each of the business
segments.
Management Committee
The responsibility to implement the board’s policies and strategic directives lies with the four member
management committee headed by the Chief Executive Officer. The company has a group of
professional managers drawn from diversified fields to carry out the day to day business operations.
Internal Control
BPL employs a sound system of internal control including internal financial control to ensure
compliance of its activities with the desired objectives. The effectiveness of the control mechanism
already in place is periodically reviewed. There are systems for careful monitoring of the activities to
make sure that the standard and procedures set out for each business function is being effectively
complied with.
Management Structure
Over the years we have successfully implemented a well designed corporate management structure with
clearly defined responsibility, delegation of authority and proper accountability. BPL has an appropriate
organization structure manned with qualified professionals for properly carrying out planning,
executing, controlling and monitoring functions of each of the business subunits.
Internal Audit
The company has a specially assigned team to carry out internal financial audits of the different
segments of the business. The team is headed by a manager who reports to the CEO. After appropriate
review of the reports necessary corrective actions are undertaken.
Reporting and Communication
Reviews of the short and long term strategic business plans are carried out at periodic intervals. Each of
the business units makes periodic financial projections and evaluations. There is a system for periodic
financial reporting for each of the business segments. The operational units are required to prepare
annual budgets and actual performance against the budget is actively monitored throughout the year at
the business unit and the central management level.
Going Concern
After making appropriate enquires at the time of approving the financial statements the directors are
convinced that the company has adequate resources to carry out its operational existence for the
foreseeable future and that it is therefore appropriate to adopt going concern basis in preparing the
financial statements.
Beximco Pharmaceuticals Limited
The accounting policies and explanatory notes to the financial statements have been set out below in
the manner as prescribed by the IAS 1 "Presentation of Financial Statements".
1. Corporate Information – Organization and Business
2. Accounting Pronouncements (Standards)
The Beximco Pharmaceuticals Ltd. (the "Company"), a member of BEXIMCO Group, was
incorporated in Bangladesh as a public limited company on 17 March 1976. It commenced
commercial operation in 1980 and went for public issue of shares in 1985. The shares of the
Company are listed in the Dhaka and Chittagong stock exchanges of Bangladesh.
The registered office of the Company is located at House No.17, Road No.2, Dhanmondi
Residential Area, Dhaka. The industrial Units are located at Kathaldia, Auspara, Tongi of Gazipur.
During the year, the principal activities of the company were manufacturing of pharmaceuticals
drugs and medicines and also basic chemical products and sales thereof. The company employed
1,151 (2000: 1,047), employees as of 31 December 2001.
The financial statements of the company have been prepared in accordance with the International
Accounting Standards-IASs adopted by the Institute of Chartered Accountants of Bangladesh (ICAB),
which are basically based on the International Accounting Standards – IASs issued by the
International Accounting Standards Committee–IASC (now replaced by International Accounting
Standards Board - IASB and International Accounting Standards Committee Foundation) and also
based on the interpretations issued by the Standing Interpretations Committee – SIC (now
International Financial Reporting Interpretations Committee – IFRIC).
It is noted that, as per the resolution passed by the IASB, all the standards to be issued by IASB shall
be designated as International Financial Reporting Standards – IFRS and, all the existing IASs issued
by IASC continue to be applicable and be designated as IASs unless and until they are amended or
withdrawn.
3. Accounting Convention (Measurement Basis)
The financial statements are prepared under the historical cost convention and therefore, do not
take into consideration the effect of inflation.
4. Basis of Preparation and Presentation of the Financial Statements and The
Responsibility Thereto
The board of directors is responsible for the preparation and presentation of financial statements.
The financial statements have been prepared and the disclosures of information have been made in
accordance with the requirements of the Companies Act 1994, the Securities and Exchange Rules
1987, the Listing Rules of Dhaka and Chittagong Stock Exchanges, and the accounting standards
referred to in Note 2.
5. Principal Accounting Policies
The specific accounting policies selected and applied by the Company’s directors for significant
transactions and events that have material effect within the framework of IAS 1 "Presentation of
Financial Statements", in preparation and presentation of financial statements have been
consistently applied throughout the year and were also consistent with those used in earlier years.
For a proper understanding of the financial statements, these accounting policies are set out below
in one place as prescribed by the IAS 1 " Presentation of Financial Statements".
1980 : Started manufacturing and marketing of licensee products of Bayer AGof Germany and Upjohn Inc. of USA 1985 : Listing in the Dhaka Stock Exchange (DSE) as a Public Limited Company (PLC) 1990 : Commissioning of Basic Chemical unit
1992 : Started export operation with Active Pharmaceutical Ingredients (APIs)
1993 : First export market operation with finished pharmaceutical products
1994-95 : Achievement of National Export Trophy (Gold) as the first
pharmaceutical company of the countryIntroduction of 20 new products
1996 : Introduction of Sustained Release dosage form in the market
Introduction of 12 new products
1997 : Commissioning of Metered Dose Inhaler (MDI) plant and introduction ofSuppository dosage form Introduction of 15 new products
1998 : Introduction of Metered Dose Nasal Spray Introduction of 13 new products
1999 : UNICEF approval of BPL as an enlisted supplier Introduction of 6 new products
2000 : Contract manufacturing agreement of Metered Dose Inhaler (MDI) with Glaxo SmithKline Introduction of 11 new products
2001 : Introduction of small volume parenteral products (Injectables) Establishment of Analgesic-Antiinflammatory plant Introduction of 26 new products
Beximco Pharma
The leading healthcare company in Bangladesh
Beximco Pharmaceuticals Ltd. is the leading pharmaceutical company of Bangladesh. Founded in 1976, Beximco Pharmaceuticals Ltd. has been producing world class pharmaceutical products following current Good Manufacturing Practice (cGMP) as required by the World Health Organization (WHO) in order to improve health, happiness and quality of life. Beximco Pharmaceuticals Ltd. has products of different therapeutic classes, each of which, occupies a prominent position in the market and the heart of our customers and shareholders. Beximco Pharmaceuticals Ltd. is always committed to improve the lives of people through the development and commercialization of high quality and cost-effective medicines. Noted for our market driven approach, BPL is also known for constructive endeavor to innovation that is usually the result of very extensive product testing and market research. As a market oriented organization, we develop a culture, that is fully committed to the continuous creation of superior customer value.
We strongly believe that quality makes the difference between life and death. After successful venturing in the local market, we have now taken the challenge to replicate the journey into the international arena. Being a responsible leader we take everything quite seriously. We don’t simply believe in introducing new molecules; we also believe in creating the difference in the marketplace by offering impeccable quality. BPL stands on the heritage of bringing innovative medicine to people. One of our key guiding principles is to operate through "customer channels". We put the customer at the center of all our activities. Commitment to our customers is one of the hallmarks of BPL. Our products are all intended to help people to live healthy lives. BPL’s portfolio features a range of high-quality, effective products, some are the first of their kind and many are ranked number one in their therapeutic area. A team of highly qualified people sets our product features and attributes. Arts and science are blended together inside our products. Our products are designed and engineered in such a manner that their overall presentation, size, shape, color, flavor, viscosity, coating etc. are completely different from those of the competitors. Formula E is formulated with an excellent chocolate taste. Ascobex and Carocet are the best tasting drugs in their respective categories. Aristovit B and Aristovit M are the most elegant drugs in their categories in the country. Whatever may be the dosage form or packaging – blister, strip, bottle, cartons, labels etc., BPL’s presentations are widely recognized for their best aesthetic look among all competitive brands.
Products
Simply make the difference
Diversification
Small Volume Parenteral (SVP) products
The strength of Beximco Pharmaceuticals Ltd. lies in its diversified products and dosage forms. BPL has been producing solid products like tablets and capsules and liquid products like syrup, suspension and solution, as well as semisolid products like cream and ointment. We are the pioneer company to manufacture and market nasal sprays, inhalation aerosols and suppositories in Bangladesh. In 2001, Beximco Pharmaceuticals Ltd. stepped into a new path--bringing Small Volume Parenteral (SVP) or injectable dosage form. Arixon is our first small volume injectable product. It is a preparation of Ceftriaxone, which is considered as a breakthrough antibiotic in the history of medicine, particularly because it is safe to be used in children as well as adults. Arixon is also the first injection in Bangladesh to offer four-layer protection against counterfeit—flipoff cap, aluminum seal with imprinted brand name, blister pack and security seal on commercial pack. In 2002, Arixon is predicted to be one of our leading brands in terms of sales revenue. As the second step, we introduced Intracef injection, a preparation of Cephradine. Intracef is a renowned brand and already available as capsule, suspension and pediatric drops. Launching of Intracef injection further strengthens the brand and offers an opportunity to promote the different dosage forms in one promotional
exposure. Arixon and Intracef injection are our first SVP products and we will introduce other exciting products in the future.
New products
In the year 2001, BPL added 26 new products of different therapeutic classes in its portfolio and these products are highly appreciated by the health professionals. Most important of them are Triocim, Arixon, Prosan, Recox, Atova etc. Introduction of these new products enriched our product portfolio and is contributing to our sales significantly.
Increasing trends in
product offerings…
….reflects our relentless effort to provide better health care services to our valued customers.
Training
Getting the best from our people
One of the agenda of the Human Resources Department is continuous development
of the employees so that they can cope with the rapidly changing business environment. Innovation is a major priority that we want to promote. Accordingly, training programs are regularly undertaken for the staff to seek opportunities for skills improvement. In 2001, employees of BPL have participated in various training programs both external and internal. There were 6 (six) induction training for the field force, 4 (four) in-house training and 2 (two) external training for employees of the Head Office during this period. Factory personnel also attended in-house training programs of a total 206 hours duration.
Major in-house and
external training programs
Title of the training
Managerial style Personal values questionnaire Learning style inventory
Learning skills profile Management workshop for women executive
Sales management Training on GMP, Process validation, SOPs and documentation Audio visual training on GMP for MDI plant Total Quality Management (TQM) Integrated material management Occupational health & safety Course leaders courses Experts from inside and outside the organization worked as our resource personnel for the training programs. All of these training programs were found highly effective in developing our peoples’ knowledge, skill and abilities to perform their assigned jobs in a better way.
Overseas Business
Striving for excellence
Overseas business has always been one of the top priorities of Beximco Pharma. By making the best use of our competency & edge in manufacturing technology and marketing skills, BPL has been able to establish a very successful international marketing network in Asia, Middle East and Africa. So far, Beximco Pharma has
marked its presence in 16 countries and in last few years, BPL has been putting its best efforts to continue this process. In the year 2001, BPL’s major emphasis in overseas markets was basically directed towards achieving a critical mass in these markets and to build brand equity of our products. In fact, last year was another very successful year for us in terms of achieving our objectives in the overseas markets. In 2001, we have signed an agreement with one of the leading distributors of Singapore with an objective to consolidate our presence in Singapore market. BPL’s specialized products like Inhalers, Nasal Sprays and Suppositories as well as solid dosage forms have already gained remarkable brand equity in Singapore. In Pakistan, we came into an agreement with one of the leading local companies to manufacture BPL brands locally and to market the same in Pakistan market. Local manufacturing of BPL brands is expected to give us substantial headway and edge in terms of overcoming competition in Pakistan. Apart from all these, we have intensified and consolidated our marketing efforts in other overseas markets, like Myanmar, Kenya, Yemen and Vietnam. To capitalize immense opportunities in these overseas markets, we are bringing in more new and exciting brands in these markets. Last year, BPL donated one ‘Medical Information K i o s k ’ to the Myanmar Medical Association of Mandalay which gained enormous attention and acceptance in the minds of the medical community of M y a n m a r. In Kenya, number of sales people has been increased to best exploit its huge market potentials. All these efforts are already bringing in desired results. Entering into new horizons and establishing new overseas markets will remain our top most priority in 2002 also. Russia, Ukraine, Sri Lanka, Cambodia, Nepal will be on the list. We are confident that our process of globalization will continue with a more and more accelerated speed in the coming days.
Fine Chemicals
Committed to supply quality products
BPL has a commitment to the society to supply world class Active Pharmaceutical
Ingredients (APIs). Therefore, BPL is not only engaged in formulations but also in fine
chemicals business with a view to supplying cost effective quality materials to other
local companies as well as for captive consumption.
As one of the most important profit centres of Beximco Pharmaceuticals Ltd., Fine
Chemicals department is involved in producing and marketing of A c t i v e
Pharmaceutical Ingredients (APIs) to the local market. It caters to almost 60% of the
demand of Amoxycillin bulk in Bangladesh.
The major products of Fine Chemicals are Amoxycillin and Ampicillin. An entirely
new bulk drug facility is being set up to produce high value and exciting new drugs.
Beximco Pharmaceuticals Ltd. has already developed some Active Pharmaceutical
Ingredients (APIs) in antibiotics, antifungal, analgesic, antihistamine, antii
n f l a m m a t o r y, antihypertensive and other therapeutic classes in a separate
multipurpose plant to meet its own requirement and also to meet the local demand
of other pharmaceutical manufacturers.
The company has acquired an outstanding ability of transforming technological
know-how into commercially viable products through in-house expertise and use of
international consultants.
BPL’s first venture into export markets started with the export of fine chemicals in
1990. Since then it has exported to a number of countries like Vietnam, Singapore,
Germany, Russia, Hongkong, Iran, South Korea etc.
The company firmly believes that, introduction of more new molecules will enable
it to expand and further strengthen its presence in local as well as international
markets thereby contributing significantly to the growth of the company’s profit.
1990 : In this year, Basic Chemical plant was established and on
September 01, 1990 commercial production of Amoxycillin
and Ampicillin was started.
1996 : In October 1996, Multipurpose Plant was established.
2001 : In March 2001, Cox Block plant was established.
Technology
Keeping pace with the advanced world
Technology carries the promise of tomorrow. The benefits of technology
belong to all of us -benefits that create new opportunities and open doors to
a better life. For example, the new inhaler plant of BPL has been designed
in a way to ensure highest-possible quality at every stage of manufacturing
and quality control. World-class facilities are being employed in each and
every step including mixing, filling, testing, labelling, batch printing and
other procedures to ensure manufacturing of world class products.
Quality
We try to achieve zero defect
At BPL, total quality control refers to the process of producing a perfect product by
a series of measures. This requires an organized effort by the entire company to
prevent or eliminate errors at every stage in production. It is supported by a team
effort. Our quality assurance establishes control or checkpoint to finally ensure the
quality of the products during production and upon completion of the
manufacturing. It starts with raw materials and component testing and includes inprocess,
packaging, labelling and finished product testing as well as batch auditing
and stability monitoring.
A highly dedicated academically sound and professionally competent team
comprising of pharmacists, chemists, biochemists, microbiologists, engineers &
others is making relentless efforts to offer the best in terms of product quality.
In every step, from the procurement of raw materials to the manufacturing of finished
products, the latest World Health Organization (WHO) approved current Good
Manufacturing Practices (cGMP) are being followed. There are written Standard
Operating Procedures (SOPs) for every process and step involved which are being
closely monitored to ensure that all concerned personnel are complying with these
procedures.
BPL’s Q.C. lab is well equipped with most modern and sophisticated equipment like,
High Performance Liquid Chromatography (HPLC), Infrared (IR) Spectrophotometer,
Ultraviolet (UV) Spectrophotometer, Homogenizer, In-vitro Bioavailability Tester,
Lung Simulator, Disintegrator, Dissolution Tester & many other latest computer aided
instruments & accessories to ensure the highest quality products.
Environment
Health and
Safety
We are continuously thriving to protect
the environment and ensure the safety
and health of our employees and
communities where we operate. At BPL,
we work to enhance protection of the
environment, and the safety and health of
our neighbours, our customers and our
employees. It is always monitored that
concerned people wear appropriate and
designated dresses like gowns, aprons,
masks, helmets etc.
BPL is very careful in discharging the
wastes that are generated from any of its
operation. To ensure this, regular
environmental monitoring of emissions is
being carried out. BPL is continuously
striving to minimize adverse impacts on
environment and to ensure total
environmental protection by minimizing
waste generation and improving the
monitoring system.
The New Formulation Plant
Beximco Pharmaceuticals Ltd. has been preparing itself for the post-WTO open
market competition. It has all the courage to compete with world leaders in
pharmaceuticals business when the tariff and non-tariff barriers will be withdrawn.
BPL has placed itself in the virtual future, extending several years beyond today. That
is why, a multi-million dollar pharmaceutical formulation plant is being built.
BPL Management decided to construct a new manufacturing plant according to
USFDA standard. This world class facility is structured and erected in line with
International Guidelines for cGMP and with particular regard to the FDA (Food and
Drug Administration Authority) of the USA. It incorporates modern technological
advancements in materials storage, handling, transfer and movement.
To meet specific cGMP requirements for the USA & European markets, all walls
within the facility are made of preformed powder coated Sandwich Panels giving a
smooth and easily cleanable surface free of cracks or crevices. The ceiling is
constructed of the same material and has been designed as a "Walk-on" ceiling. The
wall and ceiling joints are finished with powder coated aluminium coves. All floors
throughout the facility are of Self-Levelling Epoxy (SLE) providing a hard impact and
chemical resistant floor. All corners between the floor and walls are finished with
coves made from special epoxy coving material.
The huge & extensive civil & electrical work of the plant has already been
completed. Installation of some of the world’s most advanced and sophisticated
machineries is underway. The new USFDA standard plant is planned to be
operational in early 2003. Once completed, this will be one of the finest facilities to
be available anywhere in the globe.
Management
Development
Training
The continuous training program of Beximco Pharmaceuticals Ltd. has been
strengthened in 2002. In-house courses and participation in external workshops,
both within Bangladesh and abroad, have been intensified in 2002. A dedicated
training room is available at both the head office and the factory premises for
imparting general and technical training. Managers have also participated in a series
of management development program at the Hyderabad campus of the Indian
School of Business (ISB) whose faculty includes faculty members from Kellogg
University in USA and the London School of Business. An active, round the year
human resources development will be aggressively pursued by the company to raise
its intellectual capital constantly.
Beximco Pharmaceuticals Limited
Notice of The Twenty - Sixth Annual General Meeting
A G E N D A
Sd/-
( MD. ASAD ULLAH )
Company Secretary
Dated : May 06, 2002
The Register of Members and Share Transfer Book of the Company will remain closed from 5th
June, 2002 to 29th June, 2002 (both days inclusive). During that period no share transfer will be
effected. The Shareholders whose names will appear in the Share Register of the Company at the
close of business on 4th June, 2002 will be entitled to the dividend.
A member entitled to attend and vote at the General Meeting may appoint a proxy to attend and
vote in his/her stead. The Proxy Form, duly stamped, must be deposited at the Registered Office
of the Company not later than 48 hours before the time fixed for the meeting.
Members are requested to notify change of address, if any, to the Company.
Admission to the meeting room will be strictly on production of the attendance slip sent with
the Notice.
(1)
(2)
(3)
(4)
NOTES :
To confirm the proceedings of the Twenty-Fifth Annual General Meeting of the Company held
on 24th June, 2001.
To receive, consider and adopt the Audited Accounts as of 31st December, 2001 together with
reports of the Auditors and the Directors thereon.
To elect Directors.
To declare dividend @10%.
To appoint Auditors for the year 2002 and to fix their remuneration.
To transact any other business of the Company with the permission of the Chair.
By order of the Board
Notice is hereby given that the TWENTY-SIXTH ANNUAL GENERAL MEETING of the Shareholders
of Beximco Pharmaceuticals Limited will be held on Saturday, the 29th June, 2002 at 10:30 a.m. at
1, Shahbagh C/A, Dhaka to transact the following business :
17 Dhanmondi R/A, Road No. 2, Dhaka 1205
Chairman’s Statement
It is indeed my pleasure to welcome you all to the 26th Annual General Meeting of your
company. I take this opportunity to lay before you a brief resume of the affairs of the
company for the year 2001 and its future plan.
2001 Performance
During the year, the company attained net sales of Tk. 2,401.24 million as against Tk.
2,452.52 million of 2000. I am pleased to inform that sales of the formulation products
- our core business, continued to grow in 2001 as well. During the year local sales of
formulation products increased by 3.68% in Taka. Our export sales for the year also grew
by 6.91%. The overall slight decline in sales is however, mainly due to the decline in the
sales of our basic chemicals products. Our major basic chemical products-Amoxicillin
and Ampicillin are matured products. Because of emergence of several other
manufacturers and increase in the cost due to consecutive devaluation, the profit margin
of these products have squeezed substantially. Considering this, we are now in the
process of introducing a few high-value high-margin products in the basic chemical’s
portfolio to reverse the sales decline.
Your company earned a pre-tax profit of Tk. 430.42 million as against 422.64 million of
2000. As you know almost 72% of our raw materials are imported. After several
devaluation of taka against dollar, these materials have become costlier. But due to our
committed drive for containment of cost, we have succeeded in neutralizing the adverse
effect of devaluation. Our gross profit increased by 5.17% and pre-tax profit by 1.84%
over last year in absolute terms. This by any standard is an appreciable achievement.
Products
Consistent to our committed efforts to cater to the health care needs of the country, 26
new products have been added to the existing product portfolio during the year under
review. The products have got wide acceptance from the medical community. As a result
Triocim, Prosan, Recox, Atova, etc. have already placed themselves in good positions in
the market within a short period of time.
Another milestone achievement was the launching of injectable products. For the first
time we entered into small volume parental products’ market with Arixon.
Our blockbuster product Napa continued to retain the number one position since 1990.
In Antiulcerants category, Neoceptin R succeeded in remaining the market leader in
2001 as well.
New Inhaler Plant
I feel proud to announce that BPL’s Inhaler plant with world class manufacturing facilities
has commenced commercial operation in 2001. This State of the Art Plant has already
drawn interest from different quarters for its high technical standards. Successful
implementation of such a high standard manufacturing facility is yet another landmark
contribution from BPL in the healthcare system of the country. Cost effective improved
quality medicines at affordable prices are now available to replace the more expensive
and imported ones.
Expansion Program
The works of the expansion project is in progress. The planned target of opening of LC
for the Machinery and Equipment was slightly impaired due to time escalation in
releasing the Consortium Loan. Additionally, before entering into any contract we also
wanted to ensure that the sources of supply we are considering are fully capable to
deliver equipments complying to the US FDA standard. In this regard we sought the
support and assistance of relevant international consultants. Every thing is now on track
and we expect to go into commercial operation of the new plant by early 2003.
In addition to the manufacturing and physical infrastructure facilities we are upgrading
ourselves equally in other areas including development of human resources, training on
cGMP Standards, etc.
Looking Ahead
With the implementation of WTO provisions the global business particularly the
pharmaceutical business of the developing countries are going to face a new challenge.
We are mindful of the challenges but at the same time confident of our ability to succeed.
Our drive for both short and long run revenue and earning growth will continue in the
future as well. Profitable product lines will be strengthened. Investment in introducing
new products, molecules and dosage forms will be further enhanced. Recognising the
needs of today’s healthcare market place, our marketing strategy will continue to focus
on value added but cost effective medicines. Along with expanding our share in the
domestic market, we will continue to aggressively pursue our search for new avenues in
the international marketplace also, in the days ahead. Our achievements so far have
paved the way in this direction.
Dividend
As you all know the WTO agreement is changing the global business environment. The
pharmaceuticals business is becoming more complex and competitive particularly due
to the WTO-TRIPs agreement. Changes in the international patent law are going to make
the local manufacture of patented drugs very difficult and very costly. To face the new
challenges we are making investment keeping in view the long term objectives of
sustainable development and growth in revenue and profits in the difficult years ahead.
This has compelled us to make more investments in areas like product research and
development, creation of backward linkage facility, development of existing production
facilities, etc. in addition to our major investment in the US FDA standard plant.
Over the last two to three years the number of our new products has also increased
substantially. In 2001 alone we have introduced 26 new products. Moroever, 70 new
products are in pipeline. As you may be aware, introduction of a new product and its
initial marketing requires a substantial amount of cash investment. Besides, addition of
new products in the product line raises the working capital needs quite significantly. Our
working capital credit limits have not been extended since 1999 although our business
has substantially grown over these years.
In this backdrop your board of directors have found it prudent to propose a dividend @
10% this year instead of the 20% of the previous year.
Contribution to National Exchequer
During year 2001 Beximco Pharmaceuticals Limited has contributed Tk. 426 million to
the national exchequer in the form of import related taxes, Value Added Tax and Income
Tax.
Environment
Our commitment for eco-friendly environment is recognized. We continued to put our
best efforts to keep our environment free from pollution. We use environment friendly
technologies and comply fully with the environmental codes to keep the environmental
effect of our manufacturing activities to the acceptable level. Education and training for
raising the environmental awareness levels of our employees is a continuous process
within BPL.
Social Commitments
As in the past, BPL actively participated in various social awareness building programs
in 2001 as well. BPL jointly with Beximco Infusions limited provided support in various
activities undertaken on occasions like World Health Day, World Breast Feeding Day,
etc. The company also sponsored supplements in the national dailies on health care
awareness development issues.
Acknowledgement
On this occasion, I would like to recall with appreciation and thanks the support and cooperation
we have received from our bankers, our suppliers, our customers, the
regulatory bodies, the persons concerned in the various government agencies and
various people with whom we have interacted in the conduct of our business. I am
highly appreciative of our valued shareholders for the confidence they have placed on
us and the invaluable support they have extended to us.
I on behalf of your board of directors express my sincere thanks to all of you and look
forward for your continued support and co-operation in future.
Statement on Corporate Governance
Good corporate governance is an issue of key focus to the management and board of Beximco
Pharmaceuticals Limited. We place greatest emphasis on maintaining the highest standard of corporate
governance. The statement below describes how the principles of good governance is applied in BPL.
Board and Its Composition
The board of directors is the highest level of authority in the organization structure of BPL. The board is
responsible for the overall direction and is ultimately accountable to the shareholders for the activities,
strategies and performance of the company. Currently, the board of directors of BPL comprises of nine
members with Mr. A S F Rahman as Chairman and Mr. Salman F Rahman as Vice Chairman.
Board’s Functioning Process
The board meets frequently to deal with issues that require board’s approval and/or direction. To enable
the board to function effectively and allow directors to discharge their responsibilities efficiently, full and
timely information is made available to them by the professional managers of each of the business
segments.
Management Committee
The responsibility to implement the board’s policies and strategic directives lies with the four member
management committee headed by the Chief Executive Officer. The company has a group of
professional managers drawn from diversified fields to carry out the day to day business operations.
Internal Control
BPL employs a sound system of internal control including internal financial control to ensure
compliance of its activities with the desired objectives. The effectiveness of the control mechanism
already in place is periodically reviewed. There are systems for careful monitoring of the activities to
make sure that the standard and procedures set out for each business function is being effectively
complied with.
Management Structure
Over the years we have successfully implemented a well designed corporate management structure with
clearly defined responsibility, delegation of authority and proper accountability. BPL has an appropriate
organization structure manned with qualified professionals for properly carrying out planning,
executing, controlling and monitoring functions of each of the business subunits.
Internal Audit
The company has a specially assigned team to carry out internal financial audits of the different
segments of the business. The team is headed by a manager who reports to the CEO. After appropriate
review of the reports necessary corrective actions are undertaken.
Reporting and Communication
Reviews of the short and long term strategic business plans are carried out at periodic intervals. Each of
the business units makes periodic financial projections and evaluations. There is a system for periodic
financial reporting for each of the business segments. The operational units are required to prepare
annual budgets and actual performance against the budget is actively monitored throughout the year at
the business unit and the central management level.
Going Concern
After making appropriate enquires at the time of approving the financial statements the directors are
convinced that the company has adequate resources to carry out its operational existence for the
foreseeable future and that it is therefore appropriate to adopt going concern basis in preparing the
financial statements.
Beximco Pharmaceuticals Limited
The accounting policies and explanatory notes to the financial statements have been set out below in
the manner as prescribed by the IAS 1 "Presentation of Financial Statements".
1. Corporate Information – Organization and Business
2. Accounting Pronouncements (Standards)
The Beximco Pharmaceuticals Ltd. (the "Company"), a member of BEXIMCO Group, was
incorporated in Bangladesh as a public limited company on 17 March 1976. It commenced
commercial operation in 1980 and went for public issue of shares in 1985. The shares of the
Company are listed in the Dhaka and Chittagong stock exchanges of Bangladesh.
The registered office of the Company is located at House No.17, Road No.2, Dhanmondi
Residential Area, Dhaka. The industrial Units are located at Kathaldia, Auspara, Tongi of Gazipur.
During the year, the principal activities of the company were manufacturing of pharmaceuticals
drugs and medicines and also basic chemical products and sales thereof. The company employed
1,151 (2000: 1,047), employees as of 31 December 2001.
The financial statements of the company have been prepared in accordance with the International
Accounting Standards-IASs adopted by the Institute of Chartered Accountants of Bangladesh (ICAB),
which are basically based on the International Accounting Standards – IASs issued by the
International Accounting Standards Committee–IASC (now replaced by International Accounting
Standards Board - IASB and International Accounting Standards Committee Foundation) and also
based on the interpretations issued by the Standing Interpretations Committee – SIC (now
International Financial Reporting Interpretations Committee – IFRIC).
It is noted that, as per the resolution passed by the IASB, all the standards to be issued by IASB shall
be designated as International Financial Reporting Standards – IFRS and, all the existing IASs issued
by IASC continue to be applicable and be designated as IASs unless and until they are amended or
withdrawn.
3. Accounting Convention (Measurement Basis)
The financial statements are prepared under the historical cost convention and therefore, do not
take into consideration the effect of inflation.
4. Basis of Preparation and Presentation of the Financial Statements and The
Responsibility Thereto
The board of directors is responsible for the preparation and presentation of financial statements.
The financial statements have been prepared and the disclosures of information have been made in
accordance with the requirements of the Companies Act 1994, the Securities and Exchange Rules
1987, the Listing Rules of Dhaka and Chittagong Stock Exchanges, and the accounting standards
referred to in Note 2.
5. Principal Accounting Policies
The specific accounting policies selected and applied by the Company’s directors for significant
transactions and events that have material effect within the framework of IAS 1 "Presentation of
Financial Statements", in preparation and presentation of financial statements have been
consistently applied throughout the year and were also consistent with those used in earlier years.
For a proper understanding of the financial statements, these accounting policies are set out below
in one place as prescribed by the IAS 1 " Presentation of Financial Statements".
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