Letter of Transmittal
16th April, 2012
Umma Rumana Huq
Lecturer of Finance, School of Business
United International University (UIU)
House # 80, Road # 8A (Old-15)
Dhanmondi, Dhaka 1209
Here is the recommendation report on Working Capital Management of “BEXIMCO PHARMACEUTICALS LTD.” that you authorized in your letter on February 29th, 2012. As you read the report, you will get some idea about the pharmaceuticals industry of Bangladesh through our concerned organization. This report contains all the necessary information about the BEXIMCO PHARMACEUTICALS LTD. as like the mission and vision, the brief about all the activities and their services they performed and some other issues as your recommendation. We collected all this necessary information by internet, book and the annual report. We, therefore, pray and hope that you will encourage our work by accepting this report and if you have any further queries about the report you can contact us.
Md. Shaidul Hossain| ID-111092201| |
Mujammil Alam Chowdhury| ID-111092080| |
Md.Ibne Arafat Mazumder| ID-111091138| |
Umma Rumana Huq
The history of Pharmaceuticals business of the company dates back to the early 70s, when it started to import market and distribute medicines from world renowned companies like Upjohn inc. of USA and Bayer AG of Germany. Since the very beginning, the company was highly successful in generating increased demand for its products which eventually justified local production. According, a Pharmaceutical manufacturing facility was designed and constructed in 1980 under the technical supervision of Upjohn Inc. of USA, to manufacturing their products under license. Product made under license of Bayer AG of Germany followed. After its initial years of struggle, Beximco Pharma broke ground with the launching of its own products in 1983. The company aims to build the most robust product portfolio in the domestic market. In 2005, forty nine (49) new products were launched in the domestic market. October 21, 2005 Beximco Pharma opened a new chapter in the corporate business history of Bangladesh by starting trading of its shares in the Alternative Investment Market (AIM) of London Stock Exchange.
The objective of this report is to know the overall `Working Capital Management System of Beximco Pharmaceuticals Limited’ through the evaluation of inventory management system and to assess the financial analysis of Beximco Pharmaceuticals Ltd. In order to make the report more meaningful and presentable the report is based on two sources of data and information called primary and secondary sources of data.
This companies total authorized capital is (Taka) 2,000 million, total paid capital is (Taka) 1,259.57 million, total number of shareholder is around 66,000 and number of employees are 2310. Beximco Pharma’s passed lots of milestones from 1976 to up to 2012.
The name Beximco Pharma assures you of many things: outstanding product quality, leading-edge technology, advanced new products, and a commitment to serve the medical community. Beximco Pharma’s products come in a wide range of dosage forms including tablets, capsules, dry syrup, powder for suspension, cream, ointment, suppositories, metered dose nasal sprays, large volume intravenous fluids, metered dose inhalers etc. ensuring the global standard of quality. In the report we will also analysis the basic working capital management of the company including gross working capital, net working capital, operating cycle and cash cycle. We will also analysis the inventory management system and inventory management techniques of Beximco pharma and the fixed order quantity system which they followed. We will also analysis the credit management by the credit scoring which include capital, capacity, collateral and...