MIRA INFORM REPORT

Report No. :	501499
Report Date :	02.04.2018

IDENTIFICATION DETAILS

Name :	SQUARE PHARMACEUTICALS LIMITED
Registered Office :	Square Centre, 48, Mohakhali C/A, Dhaka-1212
Country :	Bangladesh
Financials (as on) :	31.12.2017
Date of Incorporation :	10.11.1964
Com. Reg. No.:	C-2252
Legal Form :	Public Listed Co
Line of Business :	Manufacturer, Exporter, Distributor and Importer of Pharmaceutical Finished Products, Basic Chemicals, Agro Vet Products Pesticide Products, Small Volume Parental Ophthalmic Products and Insulin Products.
No. of Employees :	5868

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Bangladesh	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

BANGLADESH - ECONOMIC OVERVIEW

Bangladesh's economy has grown roughly 6% per year since 1996 despite prolonged periods of political instability, poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms. Although more than half of GDP is generated through the services sector, almost half of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product.

Garment exports, the backbone of Bangladesh's industrial sector, accounted for more than 80% of total exports and were on track to again surpass $25 billion in 2017. The sector continues to grow, despite the need for improvements in factory working conditions to avert further high-profile accidents that have killed more than 1,000 workers in recent years. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $13 billion and 6% of GDP in 2016 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.

The recent influx of hundreds of millions of additional refugees from Burma will place pressure on the Bangladeshi government’s budget and the country’s rice supplies, which declined in 2017 in part because of adverse weather.

Source : CIA

IDENTIFICATION DETAILS
Correct company Name	:	SQUARE PHARMACEUTICALS LIMITED
Head Office	:	Square Centre, 48, Mohakhali C/A, Dhaka-1212, Bangladesh.
Tel No	:	88-02-8833047-56, 9859007, 9119758
Fax No	:	88-02-8834941, 8828768
E-mail	:	info@squaregroup.com
Website	:	www.squarepharma.com.bd
Date/ Year of Incorporation	:	10.11.1964
Incorporation No.	:	C-2252
Legal Form (General)	:	Public Listed Co Public (but not listed) Private Co State-owned Co Sole Proprietorships Partnership Not Registered others (please specify) ________________
Legal form (Specific)	:	LTD CORP INC CO others (please specify) ________________
Issuing Authority	:	Registrar of Joint Stock Companies & Firms City Corporation Municipal Administration Union Council Cantonment Board Chief Controller of Import & Export (CCIE)

FINANCIALS- SUMMARY
Year	Turnover/ Sales	Assets	Income
30^th June, 2017	BDT 15682846301 (July-Dec’2016)	BDT 45763246051	BDT 3874765909 (July-Dec’2016)
31^st Dec’ 2017	BDT 17130556841 (July-Dec’2017)	BDT 50631495682	BDT 4269474665 (July-Dec’2017)
Exchange Rate	USD1-Tk. 82.66 EUR 1- Tk. 102.16 GBP 1- Tk. 115.14 AUD 1 - Tk. 65.07 JPY 1 - Tk. 0.77	CAD 1 - Tk. 64.13 SEK 1 - Tk. 10.04 SGD 1 - Tk. 62.99 CNH 1 - Tk. 13.07

FULLCHECK REPORT DETAILS
Information Parted By
Name	:	Mr. Anjan Kumar Paul
Designation	:	Head of Human Resources
Contract No	:	N/A

Locations Details
Operating Address	:	Square Centre, 48, Mohakhali C/A, Dhaka-1212, Bangladesh.
Tel No	:	88-02-8833047-56, 9859007, 9119758
Fax No	:	88-02-8834941, 8828768
E-mail	:	info@squaregroup.com
Website	:	www.squarepharma.com.bd

Location :

: Owned

Ö

Rented

Leased

Area

8500

Sq. ft.

Type of Office :	: Commercial Office Bldg.			Ö		Semi-commercial office Bldg.
Retail shop					Industrial Park
Business Center					Home Office
Residential Bldg.
Factory-1:
Address		:	Momin Nagar, Gorai, Mirzapur, Tangail, Bangladesh
Tel No		:	N/A
Fax No		:	N/A

Factory-2:
Address	:	Square Road, Salgaria, Pabna, Bangladesh.
Tel No	:	N/A
Fax No	:	N/A

Factory-3:
Address	:	Board Ghar Bazar, Kaliakoir, Gazipur, Bangladesh.
Tel No	:	N/A
Fax No	:	N/A

Factory-4:
Address	:	Sutrapur, Kaliakoir, Gazipur , Bangladesh
Tel No	:	Nil
Fax No	:	Nil

Employee:
No. of Employees	In Office	:	2829	Worker	:	1288
	In Branch:	:	1751	Total	:	5868

OWNERSHIP/SHAREHOLDERS
Names of Shareholders	No. of Share	Country
Mr. Samuel S Chowdhury	39150140	Bangladesh.
Mrs. Ratna Patra	37521827	Bangladesh.
Mr. Tapan Chowdhury	40002534	Bangladesh.
Mr. Anjan Chowdhury	40509040	Bangladesh.
Mr. Kazi Iqbal Harun	23042831	Bangladesh.
General Public	557164718	Bangladesh.

DIRECTORS
Name	:	Mr. Samuel S. Chowdhury
Designation	:	Chairman
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mrs. Ratna Patra
Designation	:	Vice Chairman
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Tapan Chowdhury
Designation	:	Managing Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Anjan Chowdhury
Designation	:	Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Kazi Iqbal Harun
Designation	:	Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

6.
Name	:	Mr. M. Sekander Ali
Designation	:	Independent Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

7.
Name	:	Mrs. Nihad Kabir
Designation	:	Independent Director
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

MANAGEMENT
Name	:	Mr. Tapan Chowdhury
Job Description	:	Managing Director
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. Khandaker Habibuzzaman (FCS)
Job Description	:	Company Secretary
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A
Name	:	Mr. M Ashiqul Hoque Chawdhury
Job Description	:	Head of Admin & Supply Chain
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Kabir Reza (FCMA)
Job Description	:	Company Secretary
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Muhammadul Haque
Job Description	:	Head of Marketing
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Mizanur Rahman
Job Description	:	Hed of Operations
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. M Nawabur Rahman
Job Description	:	Head of Production (DU)
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Anjan Kumar Paul
Job Description	:	Head of Human Resources
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Md. Mizanur Rahman
Job Description	:	Head of Operation (PU)
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Shakhawat Hussain
Job Description	:	Head of Engineering
Nationality	:	Bangladeshi
Email address	:	N/A
Other details	:	N/A

BUSINESS OPERATIONS
Nature of Activity:	Manufacturer	Ö	Trader		Dealer	Distributor	Ö
	Exporter	Ö	Importer	Ö	Services	Others

Range of Products:
Products	:	Pharmaceutical Finished Products, Basic Chemicals, Agro Vet Products Pesticide Products, Small Volume Parental Ophthalmic Products and Insulin Products.
Production Capacity	:	N/A
Last Year Production	:	N/A

Trading Terms:

Purchasing Terms:	L/C	Ö	Cash	Others
	Credit :		30 days	60 days	Ö	90 days	days

Selling Terms :	L/C		Cash	Ö	Others
	Credit :	Ö	30 days		60 days	90 days	days

DETAILED DATA
Trade Reference & Related Parties	:	Overseas Clients			:	N/A
		Local Clients			:	Local Pharmacy
		Overseas Suppliers			:	N/A
		Local Suppliers			:	N/A
Trade Markets	:	Exports			:	Europe
		Imports			:	India, China
Brand Name			:	N/A
Certified			:	N/A
Auditors			:	M/s. Ahmed Zaker & Co. Chartered Accountants
Operation Status			:	Active
Member			:	Dhaka Chamber of Commerce & Industry

CAPITAL STRUCTURE
Authorized Capital	:	BDT 10,000 Million
Paid-up Capital	:	BDT 7373910900
No. of Shares	:	737391090
Share Value	:	BDT 10.00 Each
Main Assets	:	BDT 50631495682

FINANCIAL STATEMENT- DETAILED
Balance Sheet :
	Currency	: BDT
	Denomination	: 1
	Financial Year Ending	: 31^st Dec’2017
Financial Highlights	31-12-2017	30-06-2017
Assets
Non-Current Assets	25,573,939,947	23,494,648,133
Property, Plant And Equipment- Carrying Value	17,769,478,884	16,846,568,295
Investment-Long Term (At Cost)	5,171,750,651	4,812,888,360
Investment In Marketable Securities (Fair Value)	2,632,710,412	1,835,191,478
Current Assets:	25,057,555,735	22,268,597,918
Inventories	3,547,316,366	2,988,121,604
Trade Debtors	1,455,943,595	2,188,447,720
Advance, Deposit & Prepayments	1,199,177,593	1,381,066,856
Short Term Loan	5 89,886,064	2 1,386,290
Cash And Cash Equivalents	18,265,232,117	15,689,575,448
Total Assets	50,631,495,682	45,763,246,051
Shareholders' Equity And Liabilities
Share Holders” Equity:	43,125,689,424	41,201,962,311
Share Capital	7,373,910,900	6,859,452,000
Share Premium	2,035,465,000	2,035,465,000
General Reserve	1 05,878,200	1 05,878,200
Gain On Marketable Securities (Unrealized)	6 28,595,118	5 73,534,470
Retained Earnings	32,981,840,206	31,627,632,641
Non- Current Liabilities :	1,063,524,373	1,055,679,469
Deferred Tax Liability	1,063,524,373	1,055,679,469
Current Liabilities :	6,442,281,885	3,505,604,271
Short Term Loans	2,883,897,522	1,700,295,979
Trade Creditors	1,027,649,901	7 20,284,653
Liabilities For Expenses	26,779,435	21,937,186
Liabilities For Other Finance	2,503,955,027	1,063,086,453
Total Shareholders’ Equity And Liabilities	50,631,495,682	45,763,246,051
Net Assets Value Per Share (NAV)	58.48	55.88
Number Of Shares Used To Compute NAV	7 37,391,090	7 37,391,090

Income Statement :
	Currency	: BDT
	Denomination	: 1
	Financial Year Ending	: 31^st Dec’2017
Financial Highlights	July-Dec’2017	July-Dec’2016
Gross Turnover	17,130,556,841	15,682,846,301
Less: Value Added Tax	2,296,248,932	2,145,140,103
Net Turnover	14,834,307,909	13,537,706,198
Cost Of Goods Sold	(7,576,198,054)	(6,662,996,892)
Gross Profit	7,258,109,855	6,874,709,306
Operating Expenses:	( 3,287,436,290)	( 2,817,496,481)
Selling & Distribution Expenses	(2,806,119,391)	(2,400,003,748)
Administrative Expenses	(481,238,734)	(417,350,142)
Finance Cost	(78,165)	(142,591)
Profit From Operation	3,970,673,565	4,057,212,825
Other Income	1,916,057,983	1,311,739,806
Profit Before Wppf & Wf	5,886,731,548	5,886,731,548
Allocation For WPPF & WF	(280,320,550)	(255,664,411)
Profit Before Tax	5,606,410,998	5,113,288,220
Income Tax Expenses-Current	(1,329,091,429)	(1,220,931,924)
Income Tax Expenses-Deferred	(7,844,904)	(17,590,387)
Profit After Tax For The Period	4,269,474,665	3,874,765,909
Other Comprehensive Income:
Gain/(Loss) On Marketable Securities (Unrealized)	5 5,060,648	263,210,600
Total comprehensive Income For The Period	4,324,535,313	4,137,976,509
Earnings Per Share (EPS)	5.79	5.25
Number Of Shares Used To Compute EPS	737,391,090	737,391,090

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES
Sister Concerns		:		Square Group
Subsidiary		:		Nil
Name of The Group		:		Squre Yarns Ltd. Unitrend Limited Mediacom Limited Square Air Limited Square Fashion Ltd. Square Textiles Ltd. Square Hospitals Ltd. Square Spinning Ltd. Square InformatiX Ltd. Square Knit fabrics Ltd. Square Formulations Ltd. Square Toiletries Limited Square Cephalosporins Ltd. Square Consumer Products Ltd. Square Herbal and Nutraceuticals Ltd. Square Agro Development and Processing Ltd
BANKING
Bank Name	:		HSBC Citibank N.A Trust Bank Ltd. Bank Asia Ltd. Janata Bank Ltd Prime Bank Ltd. BRAC Bank Ltd. Bank Alfalah Ltd. Eastern Bank Ltd. Marcantile Bank Ltd. Standard Chartered Bank Shahjalal Islami Bank Ltd. Commercial Bank of Ceylon

ADVERSE DATA MONITORING
Dishonored Checks	:	No Record Found
Debt	:	No Record Found
Litigation	:	Clear
Performance Defaults	:	No Record Found
Adverse Local Media Coverage/ Adverse Filling History	:	No Record Found

SITE VISIT COMMENTARY

Our representative visited the subject company Head address which is situated at Square Centre, 48, Mohakhali C/A, Dhaka-1212, Bangladesh. It is situated at semi commercial area.

GENERAL COMMENTS

SC has been in its line of business for about 53 years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.04
UK Pound	1	INR 92.28
Euro	1	INR 80.62
BDT	1	INR 0.78

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.