Introduction:

Beximco Group is supposed to be Bangladesh’s largest private sector industrial enterprise. It has targeted the industries the country needs most for progress and improved living standards. Beximco is also focused on those industries, which make the most of Bangladesh’s competitive advantages in the international market. Through its ongoing growth, it has created industrial and management capabilities that will serve the country for generations. BEXIMCO’s industrial sector includes jute, textiles, basic chemicals and pharmaceuticals and marine foods. Non-industrial undertakings are focused on real estate and construction, engineering, media, information technology, trading and financial services.

BEXIMCO Group is the largest private sector industrial conglomerate in Bangladesh engaged in diverse business areas. BEXIMCO comprises of five publicly listed companies and sixteen private companies. The Group turnover in 2014 was BDT 18.5 billion. BEXIMCO employs 35,000 people and has 230,000 shareholders. BEXIMCO’s shares constitute 4.84% of the market capitalization of DSE. 

1.1 Background of the study:

The report is originated to make a study on the financial statement, Investment Decision, Financial Decision, Working Capital Management and Dividend Decision of Beximco Pharmaceuticals Limited.

The study has been carried out with the following objectives:

1. To illustrate Function of corporate financial manager of Beximco Pharmaceuticals ltd.

2. To identify the different types of financial decision of corporate manager of Beximco Pharmaceuticals ltd.

3. To make some recommendations to overcome the problems.

1.2 Objective of the study

In Bangladesh now different public ltd. organizations are operating there business. And every organization now involved attracting the retail customers that means the middle income group people of the country. To draw their attention the sells persons of different organization try to knock every possible door. These activities of different organization increase the interest about this sector. This report helps us to understand performance of a financial manager.

1.2.1 Broad objective:

By following on board question/objective the report is completed, to know overall about the company’s “Financial performance based on ratio analysis” of Beximco pharmaceuticals Ltd.

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The report is generated for knowing about the financial condition of the Beximco pharmaceuticals Ltd.

To develop self-knowledge.

To develop skill.

To develop work experience.

1.2.2 Specific objective:

To take Investment Decision.

To take Financial Decision.

To take dividend decision

To manage working capital

To get information about present condition of their finance

To guess about their future financial condition

1.3 Methodology of the study:

The study uses both primary data and secondary data. The information of the report was collected from secondary sources like books, published reports and web site of the BFL. For general concept development about the BFL short interviews and discussion session were taken as primary source.

1.3.1 Sample Size:For any research sample size is the most important factor and this research is also not an exception. For analyzing this research we talk with two person of Beximco

1.3.2 Sample Design:

A sample design is the framework, or road map, that serves as the basis for the selection of a survey sample and affects many other important aspects of a survey as well. In a broad context, survey researchers are interested in obtaining some type of information through a survey for some population, or universe, of interest. One must define a sampling frame that represents the population of interest, from which a sample is to be drawn. The sampling

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frame may be identical to the population, or it may be only part of it and is therefore subject to some under coverage, or it may have an indirect relationship to the population 

1.3.3 Sources of data collection:

A Primary Sources:The data collected for a purpose or when the researcher investigates a particular problem at hand is known as primary data.

Sources of Primary data:

The necessary data and information was gathered by following sources-

Examining documents

Taking in-depth and face to face interviews

Making observation

B) Secondary sources.

When an investigator uses data, which have already been collected by others for another purpose, such data is called secondary data.

The major parts of information are collected from the secondary such as:

Annual report of BPL.

Office files and Documents.

Study related book and different text books.

Web site.

Internal Sources:

For my project the internal secondary sources of information was the brochures, medical book and annual report of 2012, 2013 & 2014 of Beximco Pharmaceuticals Ltd. Besides I have also taken some other unpublished information from the staffs of MRC dept.

External Sources:

As an external secondary source of information I have taken data from some other reports and unpublished information which collected by personal contact of other pharmaceuticals companies.

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Discussion with Concerned Person:

As study related current data are not available, I had to discuss with concern persons for getting up to data information.

1.3.4 Survey Instrument:

Ms word, Ms Excel, Table, Questionnaire

1.4 Scope of the Study: There are lot of Public limited firm in our country. So it’s very easy for me to select one company to start my research. This study will cover Financial Manager’s Activities of Beximco Pharmaceuticals Ltd. And it’s one of the largest Public limited company in our country.

1.5 Limitation of the study:

There may some limitations behind this Report. These are –

There are lacks of sufficient primary and secondary information source.

Company will not give us the total information as it is very sensitive issue, which was needed to explore the current position.

There will be not enough information on the Internet.

The probable cause of the mistake may be because of the communication gap between the interviewer and interviewee due to differences in my maturity level and understanding.

The study has suffered from a number of barriers-

All the employees are very busy with their work, I had to wait more than one hour for a piece of information.

Time is also a big constraint for my research. I have to submit a broader deal in a shorter form of outcome. If I could get few more time to spend in collecting data for preparing my report

Constrain of resources.

Non availability of up to date data.

Sufficient books, publications, facts & figures were unavailable

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1.6 Gantt chart:

Description of the project

Time

Week

One

Week

Two

Week

Three

1.Assigning the report

2.Data Collection

3.Data analysis

4.Report Submission

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Chapter-2

Organization Profile:

Beximco Pharmaceuticals Ltd. (BPL):Beximco Pharmaceuticals Ltd. (BPL) is a member of the Beximco Group – the largest private sector business conglomerate of Bangladesh. Beximco Pharma, the largest pharmaceutical as well as bulk drug manufacturer of Bangladesh started its journey back in 1980 with manufacturing and marketing of licensee products of Bayer AG, Germany and Upjohn Inc. of USA. After its initial years of struggle, it broke ground with the launching of its own products (Aristovit-B Complex, Napa, Lactameal, Tycil etc.) in 1983.  The journey continued and barrier after barrier were crossed, challenges were faced and overcome to transform BPL into what it is at present. It went for public issue of shares in 1985. The shares of the company are listed with the Dhaka and Chittagong Stock Exchanges of Bangladesh.Today, BPL holds 10.0% of share in the domestic market after competing with such Multinational Giants as Novartis, Hoechst, Rhone Poulenc Rorer, Glaxo SmithKline, Fisons etc. The total numbers of shareholders are 47,811 and the total numbers of employees are 1,328. BPL manufactures and markets a high quality and cost-effective range of about 80 formulations covering all major therapeutic groups.BPL is the first company to receive National Export Trophy (Gold) in 1994-1995, which was the very first year of introduction of such award by the government of Bangladesh. This is the highest national recognition for excellence in Export .Beximco Pharmaceuticals Ltd. Has also been awarded National Export Trophy (Gold) recently for two consecutive years 1998-1999 & 1999-2000.It is the only company to be the record 3 times winner of this award for its outstanding export performance.BPL has transformed its activities, culture, style and philosophy to meet the demands of the new millennium. Business diversifications that are strategically important for sustained growth are results of its vision of the future. A multi-million dollar pharmaceutical formulation plant which will be fully up to the USFDA standard is being built. On completion, this plant would be one of the most modern plants in this region. Several new bulk drug facilities are being developed to backward integrate their high volume products. BPL’s commitment to its customers is to always offer them the best both in product quality and services.

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Philosophy of BEXIMCO

“We firmly believe that in the final analysis we are accountable to each of the constituents with whom we interact; namely, our customers, our employees, our suppliers, our shareholders, and fellow citizens”.

Vision of BEXIMCO

The vision of BEXIMCO reflects in the Chairman following statement (Groups Annual Report 2000).

“If there is one characteristic that has typified the BEXIMCO approach it is Vision to be the best of our nature and human resources. A vision to establish our group and country as a respected and valued regional presence.”

Mission of BEXIMCO

“Each of our activities must benefit and add value to the common wealth of our society. We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact; namely; our employee, our customer, our business associates, our fellow citizens and our shareholders.”

Board of Directors

A S F RAHMAN CHAIRMAN & MANAGING DIRECTOR

SALMAN F

RAHMANVICE CHAIRMAN

IQBAL AHMED DIRECTOR (NOMINATED BY NEW DACCA INDUSTRIES LTD.)

M A QASEM DIRECTOR (NOMINATED BY NEW DACCA INDUSTRIES LTD.)

O K CHOWDHURY DIRECTOR (NOMINATED BY BEXIMCO HOLDINGS LTD.)

A B SIDDIQUR DIRECTOR (NOMINATED BY NEW DACCA INDUSTRIES LTD.)

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RAHMAN

MD. ALAUDDIN

KHAN

DIRECTOR (NOMINATED BY INVESTMENT CORPORATION OF

BANGLADESH)

2.1 Historical background of Beximco Pharmaceuticals Ltd:

Beximco Pharmaceuticals Ltd. belongs to Beximco Group, the largest private sector business

conglomerate in Bangladesh. Bangladesh Export Import Company (BEXIMCO). The company

was incorporated in 1976 and commenced operations in 1980 with the manufacturing and

marketing, importing products from global MNCs like Bayer AG, Germany and Upjohn Inc.,

USA under licensing arrangements. In 1983, the company started manufacturing its own

formulations and it launched export operation in 1992. In 1985 BPL was listed in Dhaka Stock

Exchange (DSE) as a Public Limited Company. While the very beginning, the company was

highly successful in generating increased demand for its products which eventually justified local

production. Since then, the journey continued, and today, Beximco pharma is a leading

manufacturer and exporter of pharmaceuticals in the country, winning National Export Trophy

(Gold) a record four times. Beximco Pharma’s manufacturer facilities have been attributed by

major global regulatory bodies, and it has expended its geographic footprint across four continents.

As a public limited company, its shares are actively traded in Dhaka Stock Exchange and

Chittagong Stock Exchange, and Beximco Pharma has the unique distinction of being the only

company in the country listed on AIM of London Stock Exchange. Today Beximco Pharma

manufactures and markets its own branded generics for several diseases including AIDS, cancer,

asthma, hypertension, and diabetes for both national and international markets, having a broad

portfolio of more than 500 products and a dedicated team of around 2,700 employees.

 It manufactures a range of dosage forms including tablets, capsules, dry syrup, powder, cream,

ointment, suppositories, large volume intravenous fluids, metered dose inhalers etc. in several

world-class manufacturing plants, ensuring high quality standards complying with the World

Health Organization (WHO) approved current Good Manufacturing Practices (cGMP). Beximco

also contract manufactures for major international brands of leading multinational companies.

 Beximco has a strong market focus and is anticipating continued future growth by leveraging

business capabilities and developing superior product brands and markets. In particular it is very

interested in developing a strong export market in USA and Europe. To meet the future in 2015

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demand it has invested over US 150 million dollar to build a new state-of-the-art manufacturing

plant, confirming to USFDA and UK MHRA standards.

Shares of Top Ten Pharma Companies:

Ten companies are occupying more than 60 % of market share, where there are more than 250

(registered and unregistered) companies in Bangladesh Pharmaceutical Market. Out of these top

ten pharmaceutical companies in Bangladesh, eight are local companies, while only two are

multinational companies (MNCs). The top two domestic manufacturers, namely Square and

Beximco Pharmaceuticals are having a combined market share of about 25% of the total

pharmaceutical market of the country.

Pharmaceutical

Companies

Market Share in

Terms of Sales

Square Pharmaceutical Ltd. 17.46%

Beximco Pharmaceuticals Ltd 9.93%

Incepta 8.03%

Acme 7.09%

Opsonin 5.23%

SK+F 5.44%

ACI 5.44%

Aristo Pharma 5.70%

Orion 3.42%

Drug International 3.78%

Other 28.52%

Top Ten Pharmaceutical Companies in Bangladesh

2.2 Present sister concerns of the company:

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Industry Verticals Textiles Pharmaceuticals Ceramics Trading CT Hospitality Financial Services Energy

Public Listed C

Bangladesh Export Import Co. Ltd. Beximco Pharmaceuticals Limited Shinepukur Ceramics Limited Beximco Synthetics Limited

Products of BPL:Blockbuster Products of BPL

      Napa Highest selling drug in Bangladesh Pharmaceutical Market in terms of

unit.

      Neoceptin-R Highest selling drug in Bangladesh Pharmaceutical Market in terms of

value.

      Bextrum / Bextrum Gold Emerged as the most admired & highest selling nutritional supplement

in Bangladesh Pharmaceutical Market in just one year.

      Amdocal Highest selling cardiovascular drug in Bangladesh Pharmaceutical

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Market in terms of value.

      Tofen Highest selling oral anti-asthma drug in Bangladesh Pharmaceutical

Market in terms of value.

      Azmasol Highest selling Metered Dose Inhaler brand in Bangladesh

Pharmaceutical Market in terms of value.

Demandable Products of BPL

Products Therapeutic class

Napa Paracetamol

Amdocal Angina & ischaemic

Tycil Antibacterial

Arixon Antibacterial

Intracef Antibacterial

Neoflox Antibacterial

Atrizin Antibacterial

Pedemin Antibacterial

Filmet Antiprotozol

Neoceptin-R Antiulcerant

Bronkolas Bronchodilator

Neosten Skin

Aristovit-M Vitamin

Hi- Tech Products of BPL

Inhalation Aerosol Suppository Nasal spray

Aeronid inhaler Napa 125 suppository Nazolin Nasal spray

Azmasol Inhaler Napa 250 suppository Decomit Nasal spray

Azmasol Refill can Napa 500 suppository

Bexitrol Inhaler Ultrafen 12.5 suppository

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Decomit 100 Inhaler Ultrafen 50 suppository

Decomit 200 Inhaler

Ipramid Inhaler

2.3 Financial Performance Analysis of Beximco Pharmaceuticals Limited:A financial statement (or financial report) is a formal record of the financial activities of a

business, person, or other entity. In British English—including United Kingdom company law—a

financial statement is often referred to as an account, although the term financial statement is also

used, particularly by accountants.

For a business enterprise, all the relevant financial information, presented in a structured manner

and in a form easy to understand, are called the financial statements. They typically include four

basic financial statements, accompanied by a management discussion and analysis:

1. Statement of Financial Position: also referred to as a balance sheet, reports on a company’s assets, liabilities, and ownership equity at a given point in time. This financial statement provides information about the nature and amounts of investments in enterprise resources, obligations to creditors, and the owners’ equity in net resources.

2. Statement of Comprehensive Income: also referred to as Profit and Loss statement (or a “P&L”), reports on a company’s income, expenses, and profits over a period of time. A Profit & Loss statement provides information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state. The income statement, often called the statement of income or statement of earnings. The business and investment community uses this report to determine profitability, investment value and credit worthiness. It provides investors and creditors with information that helps them predict the amounts, timing, and uncertainty of future cash flows.

3. Statement of Changes in Equity: explains the changes of the company’s equity throughout the reporting period. Its related transaction with the shareholders, profit of the year.

4. Statement of cash flows: reports on a company’s cash flow activities, particularly its operating, investing, cash receipts, cash payments, and net change in cash resulting from operating, investing, and financing activities of an enterprise during a period, in a format that reconciles the beginning  and ending cash balances.

Balance Sheet

As At 31st December 2014

2014 Tk. Change      2013 Tk. Change %

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%

ASSETS

Non – Current Assets 15,884,877,780 69 15,180,731,67

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71.03

Property, Plant And Equipments – Carrying

Value

    15,745,492,625 68.3   15,123,306,298      70.76

Intangible Assets    135,933,879 0.06        

51,126,854

0.24

Investment In Share       3,451,276 0.01          

6,298,526

0.03

Current Assets 7,148,462,753 31 6,191,667,831 28.97

Inventories   2,291,844,631 9.95 1,983,809,444 9.28

Spares & Supplies           325,881,244 1.41    276,520,188 1.30

Accounts Receivable     978,224,317 4.24    821,356,439 3.84

Loans, Advance & Deposits      840,320,705 3.64    779,129,620 3.65

Short Term Investment   2,193,423,560 9.52    859,403,704 4.02

Cash & Cash Equivalent      518,768,296 2.24 1,471,448,436 6.88

TOTAL ASSETS 23,033,340,533 100.0 21,372,399,50

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100

SHAREHOLDERS’ EQUITY & LIABILITIES    Shareholders’ Equity

2.4 Overall performance:

HRD is the innovative impression now days for an organization. HRD obviously deals with the

working people. It works to develop employee’s behavior, personal skills, abilities organizational

and individual goals and encouraging People to be productive and satisfied employee.

Some of the companies in Bangladesh doing HR activities smoothly, Beximco Group is one of

them. Beximco Group is a big organization having 8 divisions all over the country covering all the

important locations. Beximco Pharmaceutical Ltd which is under Beximco Group has almost 3000

employees.

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HR activities are necessary for BPL, as a pharmaceutical organization- BPL deals with the

different employees with the various departments, and many people working there. That’s why

successful implementation of HR activities is very much needed.

The objective on HRD are-

The organization has right number and kinds of people.

Effectiveness of procedure for recruiting, placement, career planning, training and

development, and promoting all level of employee.

Appropriateness of reward system for motivating and changing employee.

A work environment that minimize absenteeism and keep turnover at a desirable level.

Implications for the future demand of HR.

Beside these activities HRD also conducts some other important tasks which are given below:

     HRD performs administrative function (maintenance and protocol services).

     HRD can take legal action for misconduct (theft, fraud, dishonesty, habitual late attendance,

habitual negligence or neglect to work) of employee.

  Major Functions of HRD in BPL:

BPL new accomplishes their HR functions splendid way. The major functions are briefly stated

below-

5.4.1 Acquisition:

BPL management clearly exquisites right number of people at the right placement in the right

times. So that, the people will be able to complete their tasks in the most effective and efficient

manner.

5.4.2 Development:

BPL must ensure employees job involvement by providing various types of training and

development programs, internal and external workshop, seminars, conferences, etc. the recent days

job become more dynamic so that employees should be proper skilled match with the present

environment. BPL arranges the development programs for fulfillment of top level vacancy.

5.4.3 Motivation:

BPL wants to create motivation by improving personal skills and abilities, compensates people by

fulfillment of their needs. The employees may be self motivated by taking BPL’s social welfare

activities.

5.4.4 Maintenances:

BPL ensures employee’s job assurance, providing various types of benefits, and also wants to

retain experience personnel in a proper way.

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Cost of Production:

In Beximco Pharma, they use normal historical costing for determining cost of production. Also in

some cases they use the standard costing method. They have standard cost sheet for every

components of the manufacturing cost. They also use standard cost sheet for proper control and

measure their performance. They also calculate variance from standard and actual. For doing the

costing early they use predetermined factory overhead. For using normal historical costing systems

they determine the over applied or under applied factory overhead and dispose this over applied or

under applied factory overhead through cost of goods sold statement. They also do the variance

analysis. They generally does the Spending variance and Idle capacity variance. They compare

their budgeted and actual amount for calculation of spending variance

  Inventory valuation methods and Beximco Pharma’s Practices:

The major inventory valuation methods are

discussed as follows: The Direct or Variable

Method

In the direct (or variable) method, only the variable manufacturing

costs are capitalized, or charged to the inventory.

The Full Absorption Method Full absorption costing (also referred to as full costing and

absorption costing) is a traditional method where all manufacturing

costs are capitalized in the inventory, i.e., charged to the inventory

and become assets.

The Activity Based Method Activity based costing is a relatively new type of procedure that can

be used as an inventory valuation method. The technique was

developed to provide more accurate product costs. This improved

accuracy is accomplished by tracing costs to products through

activities. In other words, costs are traced to activities (activity

costing) and then these costs are traced, in a second stage, to the

products that use the activities.

The Throughput Method The throughput method was developed to complement a concept

referred to as the theory of constraints. In this method only direct

material costs are charged to the inventory. All other costs are

expensed during the period

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Chapter 3

Work Responsibility of team members:

Sl No Name Work Responsibility

01 S.M. Al-Shahriar

Prepare Findings and analysis part, assign group members with

different part of report and editing total report

02 Md. Momin Mia Collect all necessary information from secondary sources

03 Amit Hasan Prince Prepare Introduction Conclusion and Recommendation part

04 Subha Saha Prepare Title fly to Executive Summery

Chapter 4

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Findings and Analysis

4.1 Investment decisions of financial manager

The most important decision. It begins with the firm determining the total amount of assets needed to be held by the firm. There are 2 types of investment decision:

a) Capital Investment Decision – Involves large sums of money. The impact is critical. Examples acquire a new machine or to set up a new plant.

b) b) Working Capital Investment Decision – a more routine or schedule form of decision. Examples are determination of the amount of inventories, cash and account receivables to hold within a certain period.

4.1.1 Investment rules

CAPM operations and investment activities are regulated by following rules and regulation:

 

Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2001

Guidelines on Prevention of Money Laundering & Combating Financing of Terrorism for capital market intermediaries.

The income Tax ordinance, 1984

The trust ACT, 1882 (ACT No.11 of 1882)

The stamp ACT, 1899 (ACT No.11 of 1899)

Amendment of Securities and Exchange Commission (Merchant Bank and Portfolio Manager) Rules, 2006.

4.1.2 Decision criteria

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An investment decision revolves around spending capital on assets that will yield the highest return for the company over a desired time period. In other words, the decision is about what to buy so that the company will gain the most value.

To do so, the company needs to find a balance between its short-term and long-term goals. In the very short-term, a company needs money to pay its bills, but keeping all of its cash means that it isn't investing in things that will help it grow in the future. On the other end of the spectrum is a purely long-term view. A company that invests all of its money will maximize its long-term growth prospects, but if it doesn't hold enough cash, it can't pay its bills and will go out of business soon. Companies thus need to find the right mix between long-term and short-term investment.

The investment decision also concerns what specific investments to make. Since there is no guarantee of a return for most investments, the finance department must determine an expected return. This return is not guaranteed, but is the average return on an investment if it were to be made many times.

The investments must meet three main criteria:

It must maximize the value of the firm, after considering the amount of risk the company is comfortable with (risk aversion).

It must be financed appropriately

If there is no investment opportunity the cash must be returned to shareholder in order to maximize shareholder value.

4.2 Financing Decision

The important decision which finance manager has to take is deciding source of finance. A company can raise finance from various sources such as by issue of shares, debentures or by taking loan and advances. Deciding how much to raise from which source is concern of financing decision.

4.2.1. Sources of Fund

Mainly sources of finance can be divided into two categories:

1. Owners fund.

2. Borrowed fund.

Share capital and retained earnings constitute owners’ fund and debentures, loans, bonds, etc. constitute borrowed fund.

The main concern of finance manager is to decide how much to raise from owners’ fund and how much to raise from borrowed fund.

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While taking this decision the finance manager compares the advantages and disadvantages of different sources of finance. The borrowed funds have to be paid back and involve some degree of risk whereas in owners’ fund there is no fix commitment of repayment and there is no risk involved. But finance manager prefers a mix of both types. Under financing decision finance manager fixes a ratio of owner fund and borrowed fund in the capital structure of the company.

4.2.2 Priority of specific sources

While taking financing decisions and give priority of specific sources BFL’s finance manager keeps in mind the following factors

1. Cost

2. Risk

3. Cash Flow Position

4. Control Considerations

5. Floatation Cost

6. Fixed Operating Cost

7. State of Capital Market

4.3 Working Capital Management Decision

Management will normally use a combination of policies and techniques for the management of working capital. These policies aim at managing the current assets (generally cash and cash equivalents, inventories and debtors) and the short term financing, such that cash flows and returns are acceptable.

4.3.1 Cash conversion cycle:

The cash conversion cycle is a cash flow calculation that attempts to measure the time it takes a company to convert its investment in inventory and other resource inputs into cash.

4.3.2. Cash Management:

The average Collection Period indicates the firm’s efficiency, in the collecting on its sales. It may also reflect the firm’s credit. If customer take more time to pay, then the collection period will generally be greater. A long collection period is not necessarily bad, since a stringent credit policy regarding customers its pay faster may lead to a reduction on sales.

Average Collection Period = Accounts receivable / Average Credit Sales per Day

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Average Collection Period Ratio

41.84 50.01 44.90 51.33

The average collection period should lower which will better. From the above calculation we can see that the average collection period of BPL decreases 2009-20013 year. BPL credit sales collection period is not so bad. So it means BPL their credit should be collected. It shows the good firm efficiency.

4.3.3 Inventory Management:

A low inventory turnover implies a large investment in inventories relative to the amount needed to services sales. The high inventories turnover shows that inventories are too small and it may be that the firm is constantly running short of inventory, thereby losing customers.

We informed that the Inventory Turnover Ratio of BPL is decrease gradually from 2009-2013 which is better for the firm. Because it does mean they prefer to storage their products for appropriate or limit times. So the activity or liquidity of BPL is satisfactory. And inventory turnover of BPL has the large investment in inventories relative to the amount needed to service sales.

4.3.4. Marketable securities management

Marketable securities are securities that can be easily liquidated without any delay at a reasonable price. It is the part of a company's short term investment. Firms will maintain levels of marketable securities to ensure that they are able to quickly replenish cash balances and to obtain higher returns than is possible by maintaining cash.

4.3.5. Accrual Management

Accrued revenue

Accrued revenue (or accrued assets) is an asset, such as unpaid proceeds from a delivery of goods or services, when such income is earned and a related revenue item is recognized, while cash is to be received in a later period, when the amount is deducted from accrued revenues.

Accrued expense

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Accrued expense is a liability whose timing or amount is uncertain by virtue of the fact that an invoice has not yet been received. The uncertainty of the accrued expense is not significant enough to qualify it as a provision. 

4.4 Dividend Decision:

We found that beximco provide both cash and stock dividend

4.5 Overall Findings:

From the overall findings we can say BFL use all necessary techniques to maintain the firm financially fit. They easily use all financial derivatives to keep their financing efficiency.

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Chapter-5

  Conclusion: In Bangladesh, Pharmaceutical sector is one of the most developed hi-tech sectors which are contributing in the country’s economy. Pharmaceutical sector is one of the fast growing and most developed scientific sector in Bangladesh. There are about 265 registered pharmaceutical companies operating in Bangladesh pharmaceutical industry. The market is highly competitive. BPL succeeded in gaining trust and confidence of the doctors and patients all over the country.Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company and is a member of the BEXIMCO Group, the largest private sector industrial conglomerate in Bangladesh. Beximco Pharma is also the largest exporter of pharmaceuticals from Bangladesh, spreading its presence in many developing and developed countries across the globe. Recently, BPL has successfully made its footmark in the global market when it made its debut on the London Stock Exchange as the first Bangladeshi company to be listed in the world’s most prestigious bourse. This milestone event has widened the responsibility, accountability and transparency of the company beyond geographical border. This was an added challenge to all the accounting staffs as the listing the accountability of the organization has gained a global reach. The ever expanding export trade also indicates greater responsibility to the world. The Finance and Accounts department took the challenge and prove their mettle by the timely publication of 2011 Annual Financial Reports globally. Each and every section in the department deserves to be complemented for their endeavor. From raw material import to the bringing of smile for the society, on every level, professionalism and dedication is the key to this success.Beximco Pharma is the largest exporter of pharmaceuticals in the country and the only company to win National Export Trophy (Gold), the highest national accolade for export, for record Four times. The company is the largest producer of Metered Dose Inhalers (MDIs) in the country, and the first to produce CFC free inhalers. BPL is also the first company to produce anti-retroviral drugs (ARVs) locally.In this report, we have tried my level best to identify Financial analysis is helpful in assessing the financial position and profitability of a concern. This is done through comparison by ratios for the same concern over a period of years; or for one concern against another; or for one concern against the industry as a whole (called inter firm operation); or for one concern against the predetermined standards; or for one department of a concern against other departments of the same concern (called intra firm comparison). Accounting ratios calculated for a number of years show the trend of the change of

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position. The trend is upward or downward or static. The ascertainment of trend helps us in making estimates for the future.Thus we can say that there is lots of application of financial analysis in the modern days of business. To assess any business condition financial analysis gives a clear financial picture of any business organization. This helps to evaluate the trend and condition of organization.From small to big business organization financial analysis helps a great deal in decision-making process. As it helps to give idea about the financial condition, thus it helps in future financial projection and decision making process of any business house.If there is no doubt Beximco Pharma is a leading pharmaceutical company in Bangladeshi pharmaceutical industry, but there some lacking to Finance and Accounting department. Because there financial position not so much good compare their competitive leading company. In this situation they should be careful there costing sector. In today’s complex yet highly competitive business environment management needs quality information for decision making purpose. Beximco believes that quality and control should be ensured and these can be ensured by using proper cost accounting information. Relevant and reliable cost information can be ensured by implementing by using effective cost accounting methods. There unproductive assets should invest productive sector and minimize their liability. And they do the best one fit in the context of Bangladesh.  I trust that Beximco Pharma go ahead day by day galaxy.

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Chapter-6

Recommendation of the Report:

The overall performance of BPL shows a satisfactory position although they are suffering last few

years. It is not easy to recommend some suggestion to enhance the performance level of the

organization during two month practical experience in BPL. I have observed some shortcoming

regarding operational and other aspects. On the basis of my observation I would like to present the

following recommendations:

Though BPL has qualified employee in Finance and Accounting department, but the

organization should recruit some new employee to run this department smoothly.

BPL should increase their equity capital in their capital structure, because debt capital is

already higher.

BPL should utilize their assets properly by investing them in more profitable projects as

there liquidity is higher than actual need.

They should increase dividend per share that will serve as a promotional tool.

Contribution analysis for each of the product lines to optimize profit in light of demand

factors.

Effects to bring selling prices in line with costs having regard to competition and other

market factors.

They should minimize their financing expenses to make higher net profit. They should

maximize the average collection period and average payable period.

They should be careful about the market price of share, because the price of share would

decrease in future.

Standard set-up for staff and officers to minimize administrative overhead.

Provision for the training of officers and employees in modern management techniques.

Necessary measures to be taken for the prompt seminars, advertisement and promotional

activities by the representatives.

      In the face of today’s global competition with open market operation, BPL must develop and

retain the high achievers and motivated work force and equip them with the latest skills and

technologies

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References and Appendix

Booklets published by Beximco Pharmaceuticals Limited

Beximco Pharmaceuticals Limited web site (www.beximcopharma.com/)

Annual Report 2015 - Beximco Pharmaceuticals Limited

Dhaka Stock Exchange (DSE)

en.wikipedia.org/wiki/Beximco_Pharma

Prospectus of Beximco Pharmaceuticals Limited

www.google.com

Bangladesh Pharmaceutical Society.

Beximco Pharma's Profile on Pharma Mirror Magazine

Peter S. Rose - Corporate Finance (Book)

Jeff Madhura - international financial management (Book)

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