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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