Report on evaluating the financial performance of SQUARE Pharmaceuticals Limited
SQUARE Pharmaceuticals Limited is the largest pharmaceutical Company in Bangladesh and is leading the Pharmaceuticals sector from the very beginning. 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 SQUARE Pharmaceuticals Ltd was more than Taka 10.5 Billion (US$ 155.91 million) with about 20.92%market share (April 2010– March 2011) having a growth rate of about 23.17%. SQUARE Pharmaceuticals Limited is an organization with equal emphasis on Leadership, Technology, Quality and Passion. SQUARE Pharmaceuticals Ltd. is the leading branded generic pharmaceutical manufacturer in Bangladesh producing essential and other ethical drugs and medicines by maintaining the quality. SQUARE today symbolizes a name - a state of mind. But 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 1985and is now on its way to becoming a high performance global player. SQUARE Pharmaceuticals started as a Partnership Firm in 1958. It converted into a Private Limited Company in 1964. The company made its initial price offering in 1995. It has achieved MHRA certificate as the first pharmaceutical company of Bangladesh.
1.1 Scope of this report:
The scope of the report was based on the annual reports & web site, input from interviews of executives of the SQUARE Pharmaceuticals Limited. To analyze the situation in question, we worked on focusing on SQUARE Pharmaceuticals Limited and analyzing their financial statements, company performance, risk analysis, estimating the company’s intrinsic value, relating their performance with the industry etc. The analysis was based on the exposed and available information only. In-depth data were not always available on-demand due to some unavailable reasons.
1.2 Objectives:
Our analysis is destined at evaluating the financial performance of SQUARE Pharmaceuticals Limited in comparison to other contestant firms in the market and in comparison to the whole industry. With this core objective we seek to achieve the following sub‐objectives:
1. To relate the theoretical part of our study with the practical life.
2. To evaluate the profit earning capacity and potential of the firm.
3. To scrutinize the operational and other efficiencies of the management.
4. To measure the risk exposure of the firm – both business and financial risk.
5. To appraise the performance of the company in the stock market.
6. To determine the intrinsic value of the company.
7. To determine the possible financial distress and possibility of bankruptcy of the firm.
by
Tanjila Tani