Letter of Transmittal

10 August 2011
Tashfeen Hussain
School of Business
North South University

Dear Sir,

We are delighted to present the Report on “Analysis of Financial Summary” of Square Pharmaceutical Limited Bangladesh Fiscal Yearly 2006-2010. The report includes the financial ratios, annual report, capital structure of the company during fiscal year 2006-2010.

Your instructions have been strictly followed by us to build up a vivid picture of the company’s financial performance and profile for past 5 (five) fiscal year.

Yours Sincerely
Rashadat Anowar Chowdhury
0930101020

Content
Executive Summary
Company Profile
Financial Ratio Analysis
Short Term Liquidity Ratio Analysis
Long Term Liquidity Ratio Analysis
Asset Management (Turnover) Ratio Analysis
Profitability Ratio Analysis
Market Value Ratio Analysis
Dividend Ratio Analysis
Free Cash Flow Ratio Analysis
Cost of Capital Analysis
Capital Structure Analysis

Appendix
Financial Ratio Table FY2006-2010 Appendix 1
Balance Sheet and Income Statement FY2006-2010 Appendix 2
List of Equations Appendix 3
Table of Data Used for Calculating Beta of Square Pharmaceuticals Limited Bangladesh Appendix 4

Executive Summary
Square Pharmaceutical Limited Bangladesh is one of the leading pharmaceuticals in Bangladesh. Its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player.

In this report, we have tried to focus on the financial performance of the company during the fiscal year of 2006-2010. We have used financial ratios to determine its performance in short term and long term period. The firm had a strong financial backbone as it uses less debt for investment, uses its asset efficiently for producing goods. Sales had increases on regular basis over past the years. In one word based on our analysis this firm can be an example in certain financial segment for other company.

Though, the firm pays fewer cash dividends than past fiscal years, which might be disliked by investors. But it must be added that the company had been increasing it’s the number of outstanding share regularly and also provide bonus share to its shareholder.

The company’s fiscal year is based on April to March. And regularly hold annual general meeting and publishes financial report both annually, half yearly and quarterly.

Company Profile
Square Pharmaceuticals Limited Bangladesh is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 11.46 Billion (US$ 163.71 million) with about 16.43% market share (April 2009– March 2010) having a growth rate of about 16.72%.

Vision - We view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.

Mission -Our Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large.

Objective- Our objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by our vision.

Subsidiary Company
Square Cephalosporin Ltd
Square Biotech’s Ltd.
Square Multifabrics Ltd

Associate Company
Square Textiles Ltd.
Square Knit Fabrics Ltd.
Square Fashions Ltd.
Square Hospitals Ltd.

Top Management: Board of Directors
As per provisions of the Article of Association, Board of Directors holds periodic meetings to resolve issue of policies and strategies, recording minutes/decisions for implementation by the Executive Management.

Executive Management
The Executive Management is headed by the Managing Director, the Chief Executive Officer (CEO) who has been delegated necessary and adequate authority by the Board of Directors. The Executive Management operates through further delegations of authority at every echelon of the line management. The Executive Management is responsible for preparation of segment plans/sub-segment plans for every profit centers with budgetary targets for every items of goods & services and are held accountable for deficiencies with appreciation for exceptional performance. These operations are carried out by the Executive Management through series of committees, sub-committees, ad-hock committees, standing committees assisting the line management.