Submitted By Jannatul Ferdousi ID: 091-11-724 Sec: A Working Capital Management. Daffodil International University.

Introduction
There is a trade-off between liquidity and profitability; gaining more of one ordinarily means giving up some of the other. Liquidity means having enough money in the form of cash, or near-cash assets, to meet your financial obligations. Alternatively, the ease with which assets can be converted into cash. Profitability is a measure of the amount by which a company's revenues exceed its relevant expenses. It is obvious that excessively high levels of liquidity will not do any organization any excellent, particularly in the long run as such an organization may be losing out on worthwhile investment opportunities. Low liquidity levels may limit an organizations ability to respond to business emergencies. Low profitability levels may lead to slow speed of corporate growth and may even affect a firms market rating. One of the probable dangers of high profitability levels is that it can make a fake impression that an organization has fully matured and reached a comfort zone. The resultant effect is that the management of such enterprises ends up becoming less strategic, less proactive and thus prone to corporate drift. Corporate drift itself may end up leading to corporate failure.

Backgrounds
Beximco Pharmaceuticals Ltd., commonly known as Beximco Pharma or BPL, is a leading manufacturer and exporter of finished formulations and active pharmaceutical ingredients (APIs) in Bangladesh. Beximco Pharma is the flagship company of Beximco Group, the largest private sector industrial conglomerate in Bangladesh, and remains the only Bangladeshi company with an AIM listing on the London Stock Exchange. The company employs more than 2,500 people and is widely acclaimed for its skilled and talented workforce. Its state-of-threat manufacturing facilities have been certified by the global regulatory bodies such as TGA (Australia), GCC (Gulf Council), ANVISA (Brazil) and INVIMA (Colombia). Today Beximco Pharma is building its presence across five continents and is the only Bangladeshi company to market pharmaceutical products in the USA.

Analysis of the Report

Short Term Assets
Inventories Spares and Supplies

Accounts Receivable

Loans, Advances and Deposits

From the graph it is realizable that the most stock of inventories in 2010 then 2006, 2007, 2008 and lowest stock in 2007. Among 4 years in 2010 the amount of spares and supplies is most that is 276520188. Among 5 years the most accounts receivables for BEXIMCO Pharmaceuticals LTD occurred in 2010. And the highest amount of loans advances and deposits created in 2010.

Short Term Investments

Cash and Cash Equivalents

From above graph it is seen that in 2009 short term investment is higher than 2010. And other side, the cash position of Beximco Pharmaceuticals LTD is highest in 2010 that is around 1500000000 crore taka among 5 years.

Short Term Liabilities.

Short TermBorrowings Long Term Borrowings-Current Maturity

There are six types of short term liabilities of Beximco Pharmaceuticals LTD from 2006 to 2010. From above two graphs it is seen that, position of short term borrowings is highest in 2010 1639961052 crore taka and long term borrowings-current maturity is 712122930 which is highest in 2006 among 5 years.

Creditors and Other Payables

Accrued Expense

1 1 7 ,9 3 6 ,6 2 0 9 0 ,5 1 2 ,1 7 8 8 1 ,7 7 6 7 95,0 9 4 ,9 0 5 ,4 0 6 0 ,0 5 2 ,7 3 9

2006 2007 2008 2009 2010

Dividend Payable

Income Tax Payable

From the above graphs Creditors and Other Payables in 2010 is enough more than other years. Accrued expenses are high in 2006(117936620) than other years. Dividend Payable amount is lot of high in 2006 that is 13012146 crore taka. And income tax payable amount is high in 2008 around 150000000 crore taka.

Liquidity and Profitability Position

Year 2006 2007 2008 2009 2010 Total Assets 1191,25,12,487 1195,34,18,940 1481,96,65,441 1989,19,33,422 2137,23,99,509 Total Liabilities 396,25,92,062 370,24,79,293 436,94,63,296 900,62,26,808 539,83,13,058 Net Profit After Tax 47,06,58,563 35,30,67,878 54,53,41,273 62,47,40,307 105,16,48,808 Cash Ratio 0.229 0.052 0.028 0.455 0.585

In above table it is shown that among 5 years in 2010 the amount of total liabilities is least than other years assets-liabilities comparison. Moreover, in 2010 Beximco Pharma has in quite better position in asset, liquidity (cash ratio), and profit position. Analysis: From the above all graph and table analysis it is realizable that the liquidity and profitability position of BEXIMCO Pharmaceuticals LTD in 2010 is best. And in 2010 the ratio between current assets and fixed assets is 6191667831: 15180731678 that are 1: 2.45180.

Recommendation
Beximco Pharmaceuticals Ltd has maintained 58.5% cash for liquidity management in 2010 against current liabilities that is 2513157232 crore taka. And in that year profit is 105, 16, 48,808 crore taka. If in that year the cash management was 45.5% and rest 13% cash is invested than the profit would be 817, 94, 90,729 crore taka since total liability was quite less.

Conclusion
The liquidity and profitability dilemma of Beximco Pharmaceuticals ltd was quite less in 2010. And assets-liabilities position is also good in that particular year. Beximco Pharma always aspires to become a nationally admired and globally reputed generic pharmaceutical company, committed to enhancing human health and life