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Table Of Contains
Sl No Contains Page no
01. LATTER OF TRANSMITTEL I
02. Acknowledgement II
03. Executive Summary III
04. Table Of Contains 1
05. Company Profile 2
06. History of the Organization 2
07. Does the companys annual report information possess
Relevance?
4
08. Does the companys annual report information possess
Reliability?
5
09. Does the companys annual report information possess
Comparability?
6
10. Does the companys annual report information possess
Consistency?
6
11. Recommendation 7
12. CONCLUSION 8
13. REFERENCE IV







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Chapter One: Introduction

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 2011 March 2012)
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.
History of the Organization:
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 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 5 Billion
(US$ 90 million) with about 15% market share (April 2003 March 2004) having a
growth rate of about 16%.
1958: Debut of Square Pharmaceuticals Limited as a partnership firm.
1964: Converted into a Private Limited Company.
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1974: Technical Collaboration with Janssen Pharmaceutical, Belgium, a subsidiary of
Johnson and Johnson International, USA.
1982: Licensing Agreement signed with F. Hoffmann-La Roche Ltd., Switzerland.
1985: Achieved first position in the Pharmaceutical Market of Bangladesh among all
national and multinational companies.
1987: Pioneer in pharmaceutical export from Bangladesh.
1991: Converted in to a Public Limited Company
1994: Initial Public Offering of Square Pharmaceutical Shares.
1995: Chemical Division of Square Pharmaceuticals Ltd. starts production of
pharmaceutical bulk products (API).
1997: Won the National Export trophy for exporting pharmaceuticals.
1998: Agro-chemicals & Veterinary Products Division of Square Pharmaceuticals Limited
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: Signing of agreement with ROVIPHARM, Vietnam to manufacture and market
SQUARE products under license in Vietnam.Secured the top position for the best
published accounts and report for 2003 in the manufacturing category for transparency and
excellence in corporate reporting.
2010: New State-of- the-Art Square Cephlosporins Ltd. goes into operation; built under
the supervision of TELSTAR S.A. of Spain as per US FDA/ UK MHRA requirements.





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Chapter Two: Analysis of annual report
1. Does the companys annual report information possess Relevance?
To be relevant, accounting information must be capable of making a difference in a
decision. If certain information has no bearing on a decision, it is irrelevant to that
decision. Relevant information helps users make predictions about the ultimate
outcome of past, present, and future events; that is, it has predictive value. Relevant
information also helps users confirm or correct prior expectations; it has feedback
value. For example, when UPS (United Parcel Service) issues an interim report, this
information is considered relevant because it provides a basis for forecasting annual
earnings and provides feedback on past performance. For information to be relevant, it
must also be available to decision makers before it loses its capacity to influence their
decisions. Thus timeliness is a primary ingredient. If UPS did not report its interim
results until six months after the end of the period, the information would be much less
useful for decision making purposes. For information to be relevant it should have
predictive or feedback value and it must be presented on a timely basis
Form the analysis of previous annual report of square pharmaceutical ltd I find that the
information provided are relevant for the user of information. Because its information
has
a) Timeliness: the information provided for a specific period of time the time period
is for one year, ever year it published its annual report for its stock holders.
b) Predictive value: the company has a detailed plane for itself about it future and
prediction about future growth which we find form management discussion and
analysis part.
c) Feedback value: form the final account and foot note we can find the feedback of
previous prediction that match with the perceived value. For this reasons we can
say the information is Relevance.








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2. Does the companys annual report information possess Reliability?
Accounting information is reliable to the extent that it is verifiable, is a faithful
representation, and is reasonably free of error and bias. Reliability is a necessity for
individuals who have neither the time nor the expertise to evaluate the factual content
of the information. Verifiability is demonstrated when independent measurers, using
the same measurement methods, obtain similar results. For example, would several
independent auditors come to the same conclusion about a set of financial statements?
If outside parties using the same measurement methods arrive at different conclusions,
then the statements are not verifiable. Auditors could not render an opinion on such
statements. Representational faithfulness means that the numbers and descriptions
represent what really existed or happened. The accounting numbers and descriptions
agree with the resources or events that these numbers and descriptions purport to
represent. If General Motors income statement reports sales of $150 billion when it
had sales of $138.2 billion, then the statement is not a faithful representation.
Neutrality means that information cannot be selected to favor one set of interested
parties over another. Factual, truthful, unbiased information must be the overriding
consideration. For example, R. J. Reynolds should not be permitted to suppress
information in the notes to its financial statements about the numerous lawsuits that
have been filed against it because of tobacco-related health concerns even though such
disclosure is damaging to the company. Neutrality in standard setting has come under
increasing attack. Some argue that standards should not be issued if they cause
undesirable economic effects on an industry or company. We disagree. Standards must
be free from bias or we will no longer have credible financial statements. Without
credible financial statements, individuals will no longer use this information. An
analogy demonstrates the point: In the United\ States, we have both boxing and
wrestling matches. Many individuals bet on boxing matches because such contests are
assumed not to be fixed. But nobody bets on wrestling matches. Why? Because the
public assumes that wrestling matches are rigged. If financial information is biased,
the public will lose confidence and no longer use this information.
Form the analysis of previous annual report of square pharmaceutical ltd I find that the
information provided are relevant for the user of information. Because its information
has
a. Representational Faithfulness: the information provided is faithful enough that so
auditor authorized the financial statement as Standard unqualified report, on the
other hand by analyzing previous history I find that by using the information no
one suffer from losses
b. Verifiability: the information provided in the statement is verifiable, by using the
same method any one can verify the information
c. Neutrality: the information is not bias it is neutral for all.

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3. Does the companys annual report information possess Comparability?
Comparability is one of the key qualities which accounting information must possess.
Accounting information is comparable when accounting standards and policies are
applied consistently from one period to another and from one region to another. The
characteristic of comparability of financial is important because it allows us to compare
a set of financial statements with those of prior periods and those of other companies.
The information of square pharmaceutical is comparable with other years performance
as well as with other company.

4. Does the companys annual report information possess Consistency?
The concept of consistency means that accounting methods once adopted must be
applied consistently in future. Also same methods and techniques must be used for
similar situations. It implies that a business must refrain from changing its accounting
policy unless on reasonable grounds. If for any valid reasons the accounting policy is
changed, a business must disclose the nature of change, the reasons for the change and
its effects on the items of financial statements. Consistency concept is important
because of the need for comparability, that is, it enables investors and other users
of financial statements to easily and correctly compare the financial statements of a
company.
The organization follows the same accounting method over the year to year calculation
of its asset, liability and owners equity so we can call square pharmaceutical as a
consistent company.




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Recommendation
1. Quality and control: According to international standard square pharmaceuticals ltd.
should maintain their product quality.
2. Local market share: At present in Bangladesh square pharmaceuticals is the market
leader in pharmaceutical sector. Its followers and competitors always try to increase their
percentage of market share. So square pharma concentrate more to increase his market
share.
3. Dynamic sales strategies: Due to the customer complaint and the lack of guidelines to
prevent untrained sales staff from serving customers, we recommended that square pharma
should take dynamic sales strategies for higher customer satisfaction.
4. Foreign market: Though SPL captured Asia, Africa, Middle East pharmaceutical market
but the Europe market till now un-captured. So square pharma should concentrate more in
Europe market.
5. Compensation: In the light of the employee's complaint, square pharmaceuticals should
take proper compensation policy.
6. Staff training: Though SPL is a leading company but its maximum staffs are not well
trained. So company should arrange training program.
7. Monitoring new staff: To get better performance the authority of the company should
monitor their new staffs carefully.
















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CONCLUSION:

From the total analysis, I can summarize that Square Pharmaceuticals Ltd. has been
doing pretty good throughout the years. It is true that last year their return did decline
but it is still pretty much satisfactory. Therefore, we can conclude that Square
Pharmaceuticals Ltd. is a good enough company to invest on. The other
Pharmaceuticals Ltd. financial analysis indicates that it has been also doing pretty good
throughout the years but not as well as the Square Pharmaceuticals Ltd.