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ALPHA Pharmaceuticals LTD.: Mission
ALPHA Pharmaceuticals LTD.: Mission
Mission
To become an innovative and leading pharmaceuticals company in Bangladesh
Vision
To provide service to Bangladeshi people and to fulfill the demand of countrys medicine and
export it also to overseas.
Objectives
Our objectives are to transform Pharmainto a profitable company through operation of business
by 2016, and make best use of resource with serving our society well.
However today, the pharmaceutical companies in Bangladesh are one of the fastest growing
sectors in the nation. Prior to post-liberation, the Multinational companies used to dominate the
market but today this situation has been completely reversed. Now approximately 80% of the
domestic pharmaceutical need is met by the local companies. In 2010, the total size of the
pharmaceuticals market of Bangladesh was estimated to be USD 100 billion with an annual
growth rate of about 24.58%, which has the highest annual growth in the world. With high
growth rates and increasing demand for products both locally and overseas Bangladeshs
Pharmaceutical Industry is now heading towards self-sufficiency. Eventually pharmaceutical
industry got an occasion to post a growth above 20% in 2010.
Company Name
Corporate Headquarters
Uday Tower
Gulshan Avenue
Gulshan-1 Dhaka - 1212
Bangladesh
Phone: + 880 28831382
Mobile: + 880 01676256775
Fax: + 880 29343459
Factory Premises
Founded
January 1, 2013
Board of Directors
Sagor Sarkar
CEO
Shakkhor Haque
CFO
Number of Employees
23
Associated Bank
Associated Auditor
Authorized Capital
40,000,000 TK
40,000,000 TK
4. Products
Generic Name
Trade Name
Uses
Paracetamol
Ace
Omeprazole
Gastrazole
5. Company Background:
Number of employees: 23
Number of departments: 4
There are 4 departments in the organization which consists of the Finance and Accounting
Department, Marketing Department, Production Department and the Human Resources
Department. Alpha Pharma was established on January 1, 2013 with the aim of producing
innovative medicines for the people of Bangladesh so as to improve the general healthcare
system in the country. As of January 2013 the Company hired a total of 23 employees for various
departments for production purposes.
Our Finance and Accounting Department provides cost effective and efficient
accounting and financial management services to the Board and other stakeholders. Timely,
accurate, clear and complete financial information is provided through budget and financial
reporting, management information systems, forecasting and procedure development.
Marketing:
The Companys marketing department serves as the face of the organization, coordinating
and producing all materials representing the company. It is the marketing department's job to
reach out to potential customers, investors and the community, and create an image that
represents the company in a positive light.
Production:
Production is the functional area responsible for turning inputs into finished outputs
through a series of production processes. The Production Manager is responsible for making sure
that raw materials are provided and made into finished goods effectively. He also makes sure that
work is carried out smoothly, and must supervise procedures for making work more efficient and
more enjoyable.
Corporate Governance
To assure the spirit of the Corporate Governance with accountability for inspiring
confidence of investors, regulators, financer and other stakeholders, Alpha Pharma is committed
to comply with all the requirements of Corporate Governance as required by the Securities and
Exchange Commission (SEC).
Board of Directors
The Board of Directors lies between the shareholders and operational management
of the organization. Directors are elected or appointed by the shareholders. The Board of
Directors is responsible for operating the Company and for the best interest of its shareholders
and is directly accountable to the shareholders. The Board of Directors of Alpha Pharma
comprises of 21 members including the CEO, CFO, GM and Executive Financial Director.
MANAGERIAL HIERARCHY
6. Financial Policy
The financial policy of Alpha Pharma is given below:
Production Costs
30000
54000
66000
54000
40000
Tk244,000
Costs are broken down into three specific categories, direct materials, direct labor
and manufacturing overheads. Cost of manufactured goods is estimated to be Tk. 5.
Revenue
Revenue is only recognized when a formal transaction is made with a retail store or a
hospital. Revenue is recognized from the moment inventory leaves the stock. The price of all the
tablets, and capsules on an average is Tk. 8.5.
Accounts Payable
Accounts payable of Alpha Pharma will be stated at its original invoiced amount after
deducting debit balances. Normally we will try to keep the average payment period at less than
40 days.
Accounts Receivable
Accounts receivable will be stated at its original invoiced amount after deducting
credit balances. There will be a 30 day payment policy for general customers on accounts
receivables, and a 40 day payment policy for prioritized customers.
Calculation of Payment
Present value = PMT (PVIFA 22%, 5)
18,000,000 = PMT (2.863639761)
PMT =18,000,000/2.864 = TK. 6,285, 706.83
Loan
18,000,000
Payment
6,285,706.83
2.864
Year
Beginning
Balance
Payment
Interest
Payment of
Principal
Remaining
Balance
18,000,000
6285706.83
3960000
2325706.828
15674293.17
15674293.17
6285706.83
3448344.5
2837362.331
12836930.84
12836930.84
6285706.83
2824124.78
3461582.043
9375348.797
9375348.797
6285706.83
2062576.74
4223130.093
5152218.704
5152218.704
6285706.83
1133488.11
5152218.714
-0.009310412
Fixed Assets
Machinery, Land, vehicles and furniture are stated in the Financial Statements at
cost less depreciation. When fixed assets are to be disposed the book values of the asset and their
accumulated depreciation are eliminated up to the date of disposal. Any gains or losses from
disposal are then recorded as income or loss.
Depreciation
Alpha Pharma depreciates its fixed assets under the the straight line depreciation method.
Fixed Asset
Expected Lifetime
(Years)
Salvage Value
Machinery
20
Vehicle
10
Furniture
10
Building
50
Jan 1:
Jan 3:
Purchased land for Tk. 30,000,000 with 80% cash and rest 20% on credit.
Construction of building cost Tk. 15,000,000 with 60% on cash and 40% on credit.
Estimated life is expected to be 50 years.
Jan 4:
Bought machinery, including the installation costs for Tk. 20,000,000. The estimated life
January 10: Bought office Supplies for 1 year with Tk. 50,000.
January 31: Paid telephone bills of Tk.3500.
January 31: Paid Salary expenses of Tk. 244,000.
January 31: Gas and electricity expenses were Tk. 9,000.
February 11: Paid telephone bills of Tk.3500.
February 12: Freight out was Tk. 40,000.
February 22: Used office supplies of Tk. 15,000.
Jan.3
Jan.4
Jan.4
Jan.4
Jan.10
Jan.31
Jan.31
Cash
Capital
Dr.
40,000,000
40,000,000
Cash
Bank loan
1,800,000
Prepaid Insurance
Cash
100,000
Land
Cash
Accounts Payable
30,000,000
Building
Cash
Accounts Payable
15,000,000
Machinery
Cash
20,000,000
Vehicle
Cash
2,000,000
Furniture
Cash
1,500,000
Office Supplies
Cash
50,000
Telephone bills
Cash
3,500
Salaries Expense
244,000
1,800,000
1,00,000
24,000,000
6,000,000
9,000,000
6,000,000
20,000,000
2,000,000
1,500,000
50,000
3,500
Cash
Jan.31
Jan.31
Jan.31
244,000
Interest expense
Interest expense payable
330,000
500
2500
330,000
500
Cr.
2500
625
625
10. The Board of DSE takes the decision regarding listing/non-listing of the company which
must be completed within 75 days from the closure of the subscription.
THE END