Important Topic Final

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Nature of Working Capital:

The funds invested in current assets are termed as working capital. It is the fund that is needed to run the day-to-day operations. It circulates in the business like the blood circulates in a living body. Generally, working capital refers to the current assets of a company that are changed from one form to another in the ordinary course of business, from cash to inventory, inventory to work in progress (WIP), WIP to finished goods, finished goods to receivables and from receivables to cash. It has been widely accepted that the profitability of a business concern likely depends upon the manner in which its working capital is managed. There are many instances of business failure for inadequate working capital.

The nature of working capital is as discussed below:

1. It is used for purchase of raw materials, payment of wages and expenses.

2. It changes form constantly to keep the wheels of business moving.

3. Working capital enhances liquidity, solvency, creditworthiness and reputation of the enterprise.

4. It generates the elements of cost namely: Materials, wages and expenses.

5. It enables the enterprise to avail the cash discount facilities offered by its suppliers.

6. It helps improve the morale of business executives and their efficiency reaches at the highest climax.

7. It facilitates expansion programmers of the enterprise and helps in maintaining operational efficiency of fixed assets

Company Profile:

SQUARE Pharmaceuticals Ltd :

SQUARE Pharmaceuticals Limited 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, converted into a public limited company in 1991 and listed with stock exchanges in 1995. The turnover of Square Pharma was Taka 30.28 Billion (US$ 385.22 million) with about 18.64% market share having a growth rate of about 25.36% (April 2014– March 2015).

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 1985 and is now on its way to becoming a high performance global player.

SQUARE Pharmaceuticals Limited has extended its range of services towards the highway of global market. It pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products. Present export market covers 36 countries. This extension in business and services has manifested the credibility of Square Pharmaceuticals Limited.

Chronology since Inception

1958: Debut of SQUARE Pharma as a Partnership Firm.

1964: Converted into a Private Limited Company.

1974: Technical Collaboration with Janssen Pharmaceuticals, Belgium, a subsidiary of Johnson and Johnson International, USA.

1982: Licensing Agreement signed with F. Hoffman-La Roche & Co Ltd., Switzerland.

1985: Achieved market-leadership in the pharmaceutical market of Bangladesh among all national and multinational companies.

1987: Pioneer in pharmaceutical export from Bangladesh.

1991: Converted into a Public Limited Company

1994: Initial Public Offering of shares of SQUARE Pharmaceuticals Ltd.

1995: Chemical Division of SQUARE Pharmaceuticals Ltd. starts production of Active Pharmaceutical Ingredients (API).

1997: Won the National Export trophy for exporting pharmaceuticals.

1998: Agro-chemicals & Veterinary Products division of SQUARE Pharmaceuticals starts its operation.

2001: US FDA/UK MCA standard new pharmaceutical factory goes into operation built under the supervision of Bovis Lend Lease, UK.

2004: SQUARE enlisted as UNICEF's global supplier.

2005: New State-of-the-Art SQUARE Cephalosporins Ltd. goes into operation; built under the supervision of TELSTAR S.A. of Spain as per US FDA/ UK MHRA requirements.

2007: SQUARE Pharmaceuticals Ltd., Dhaka Unit gets the UK MHRA approval.

2009: Starts manufacturing of insulin maintaining quality standards of US FDA & UK MHRA. Dedicated hormone & steroid products manufacturing facility complying with the current Good Manufacturing Practice (cGMP) of WHO, US FDA & UK MHRA starts operation.

2012: SQUARE Pharmaceuticals Ltd., Dhaka Unit and SQUARE Cephalosporins Ltd. get the Therapeutic Goods Administration (TGA) of Australia approval.

2015: PAI (Pre Approval Inspection) by US FDA was successful for Dhaka Site’s solid dosage unit. WHO approved square’s GMP.

Beximco Pharmaceuticals Ltd :

Beximco Pharmaceuticals Ltd (Beximco Pharma) is a leading manufacturer and exporter of medicines in Bangladesh. Incorporated in the late 70s, Beximco Pharma began as a distributor, importing products from global MNCs like Bayer, Germany and Upjohn, USA and selling them in the local market, which were later manufactured and distributed under licensing arrangement. Since then, the journey continued, and today, Beximco Pharma is one of the largest exporters of medicines in Bangladesh, winning National Export (Gold) Trophy a record four times. .

The company continues to adhere to the global standards and its manufacturing facilities have been already certified by the regulatory authorities of USA, Europe, Australia, Canada, Latin America and South Africa. Over the last three decades Beximco Pharma has grown from strength to strength but the simple principle on which