“Current position, problems and prospect of Libra Infusions Limited in competitive market.”

“Current position, problems and prospect of Libra Infusions Limited in competittive market(A cause study on Rangpur Branch)”

Chapter OneIntroduction & Background of the study

1.1. Background of the Study

Internship program has been included to BBA curriculum forproviding talent, up-to date and smart, efficient executives.Internship means gaining supervised experience. Internshipprogram offers an opportunity to know the environment of aparticular organization. By doing this program, I havedeveloped and refined my theoretical knowledge gained in theclassroom. This program provides exciting experience ofplanning, culture, behavior of employee and management styleof that organization, which helps me to fill the gap betweentheoretical and real practical world. Theoretical knowledgedoes not make a person perfect. To implement the academicknowledge, practical knowledge related to it, is important. Aperfect consideration between theory and practice is importantin the context of modern business world. In order to resolvethe dichotomy between theory and practice, AccountingDepartment, Hajee Mohammad Danesh Science & TechnologyUniversity arranges internship program as a partial completionof BBA program. This program is compulsory for every studentto complete his or her academic degree. Internship programbrings students closer to the business theory and practicaland thereby help them to substantiate their knowledge so thatthey can prepare themselves to start a successful career.Under the internship program, every student is assigned to anorganization with a view to acquire practical knowledge. Aftertaking practical knowledge, each student is required toprepare a report on the selected organization under theguideline of his/ her assigned teacher. As a participant inthis program, I was place at Libra infusions Ltd, Rangpurbranch, Rangpur. That is well reputed for selling anddistributing at Rangpur, for a period of forty five days.

1.2. Statement of the Title

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I was very much interested about the overall performance ofLibra Infusions Limited in our country. In order to know theactivities related with overall performance of Libra InfusionsLimited and documents required to maintain this system, Ichose the topic as “Current position, problems and prospectsof Libra Infusions Limited in competitive market (a case studyon Rangpur Branch)” in a Pharmaceutical industry ofBangladesh.

1.3. Rationale of the StudyThe purpose of this report is to get a gist idea about theLibra Infusions Limited, which is operated in our country.Pharmaceutical industry of Bangladesh is a vast term andthrough this report I have tried to analyze some crucialfeatures. Without understanding the term of Pharmaceutical, itis very difficult to go deeply of this industry. To make thePharmaceutical concept easier to the people, I tried my bestto present the crucial topics in a smooth way. If thefinancial position of the company is not in a suitableposition, the company may face crisis. In this report I amtrying to give basic idea of Libra Infusions Limited includingincome statement, cash flow statement, statement of changes inequity, balance sheet, auditor’s report and so on. Annualreport of this company also analyzed very carefully.1.4. Objectives of the Study

The main objective of the internship program is to formalizeme with the real market situation and help me learn howbookish concepts are used in the real market. Therefore, fromthe very beginning of the study I have tried my level best toconduct my internship with a view to achieve some specificobjectives and I have gone across the various department ofthe bank to acquire some related information and functioningprocedure regarding those department.

The objectives of the study are mentioned below:

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a) To acquire knowledge about the different operations ofLibra Infusions Limited.

b) To learn how the fund management system of a companyoperates.

c) To know the issues those are required to manage to runthe operating system.

d) To identify the problems those are related with themanagement system.

e) To know the sources of fund and the areas in which thefund of a company are utilized.

f) To know about the production process of Libra InfusionsLimited.

g) To know the various liquid assets of a company and theirimportance.

h) To know about the product and services of Libra InfusionsLimited.

i) To know about the distributing system of Libra InfusionsLimited.

j) To know about the new product line of Libra InfusionsLimited.

k) To know about the research and development system ofLibra Infusions Limited.

l) To find out the area in which a company is moreinterested to invest.

m) To know the problems those are related in managementsystem.

n) To know the services those the company provides for itscustomers.

o) To go through all the departments of a company andobserve what actually happened in these departments.

p) To know about the audit system of Libra Infusions Limitedq) To know about maintaining account system of Libra

Infusions Limitedr) To provide recommendations.

1.5. Scope of the Report

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This report has been prepared through extensive discussionwith company employees, clients and officers and on theinformation gathered from the annual report and prospectus ofLibra Infusions Limited. I have got the great opportunity tohave an in-depth knowledge of operating system of LibraInfusions Limited.

1.6. Limitations of the Study

Although I have got the full co-operation from employees,

clients officers of Libra Infusions Limited and they also gave

me much time to prepare this report properly in the way of my

study, I have faced some difficulties, which made my

conduction of the program little hazardous. Some of these are

mentioned below:

a) It should be certainly mentioned that the time forty five

days is very short to get the total view of the company’s

all functions.

b) The officers were quite busy with their regular

activities. For this reasons it was also a little problem

to collect detail information from them.

c) In some cases, they could not be able to supply me any

information for the reason that they have no printed

documents of supply chain activities.

d) Office secrecy was one of the most important problems.

Disclosing of some information was restricted.4


e) In case of secondary data collection, there was very

little secondary information. There were few support

books, reports, journals, etc. moreover, the branch

office had very little of this information. That’s why

bulk of it had to be collected from the head office.

f) As the officers were very busy with their day-to-day

work, they could provide very little time.

g) There is another strong problem that is there was no such

kind of activities in this company before me.

Chapter TwoLiterature Review

There are no research reports on the company’s activities andprograms of Libra Infusions Limited. But there are somestudies on Libra Infusions Limited service expansion program.The human resource department arranges different researchprogram to identify its problems and inefficiencies. And bythis way it tries to resolve their problems to provide

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excellent services to its customers the management of LibraInfusions Limited should do to resolve these problems.

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Chapter ThreeMethodology of the study

3.1. Introduction

The nature of this report is descriptive. So instead of doingany survey, observation method is used to complete thisqualitative research. I have tried to collect all suchinformation that will reflect the actual situation of thecompany for any report. I have collected various types ofprimary and secondary data while I was performing my job. Ihave collected various data from various sources by face toface interview with the employees working in differentdepartments of company, Rangpur branch, personalinvestigation, circulars sent by Head office and maintainingdaily diary which contains all the activities that has beenobserved in the company.

3.2. Population

The report has been prepared on overall performance of LibraInfusions Limited. Therefore, for the purpose of the study,all the branches of Libra Infusions Limited have beenconsidered as the population of the study.

3.3. Sampling Unit

Only one branch of Libra Infusions Limited has been taken asthe sampling unit for the study, i.e. Rangpur branch.

3.4. Sampling MethodRandom sampling method has been used for the purpose of thestudy.

3.5. Sources of Data

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The report is based on both primary and secondary sources ofinformation. Interviewing the managers and officers of thecompany, talking to the customers, the primary data have beencollect. Further more different publications of the companyannual reports and the company’s websites have been used forthe purpose of collecting secondary data.

3.5.1. Primary Sources of Data

a) Guidelines and suggestions from depot charge of LibraInfusions Limited (Rangpur Branch).

b) Opinions and suggestions of company’s officials.c) From Mr. Jahangir Alam, secretary of Libra Infusions

Limited.

3.5.2. Secondary Sources of Data

a) Annual report of Libra Infusions Limited.b) Published booklet of Libra Infusions Limited.c) Various published document.d) Website.

3.6. Method of Data Collection

For the purpose of the study, two methods of data collectionhave based:

a) Observation method.b) Interview method.

3.7. Analytical Tools and Software

To make the report more understandable and give a nice look, different analytical tools and software, have been used to prepare the report. A number of flowchart, graph, table and different computer software are used.

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Chapter FourOrganizational Profile

4.1. Historical Background

There was always a scarcity of Intravenous (I.V.) Fluid in themarket as Govt. could not manufacture enough to fulfill thelocal demand. Before 1985, the major portion of the localdemand was being covered by the imported I.V. Fluid. Toovercome this situation LIBRA made its debut in February 1985

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under the strong leadership of Dr. Roushon Alam with a view toprovide quality products. The company is situated on approx. 2acres of land at Mirpur I/E, Dhaka. The factory is housed in acentrally Air Conditioning modern building having allnecessary facilities. I.V. Fluid, the product of the companyis a life saving and a basic medical necessity used in allmedical situations involving diarrhoeal disease, surgicaloperation, loss of blood, weakness and hospitalization ingeneral. LIBRA's I.V. Fluid being a quality product has atremendous demand in the market.

The technology has been supplied by M/S Vifor S.A., Geneva,Switzerland under a Technical Collaboration Agreement. Inaddition, implementation of ISO 9001 Quality Management Systemhas ensured customer satisfaction by guaranteeing good design,reliable product quality, safe performance, prompt deliveryand efficient service. LIBRA employed a team of highlyqualified and motivated staff. Since LIBRA came first in thissegment of pharmaceuticals, the company had to struggle with alot of adverse situations.

But today, LIBRA is known to the medical profession andgeneral public as the best and largest manufacturer of I.V.Fluid in Bangladesh.

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4.2. Corporate History at a Glance

Status : Public Limited CompanyYear of Establishment (as Private Ltd. Co.) : 02 February 1976Converted into Public Limited Company : 1994Subscription Opened on : 11 April 1994Subscription Closed on : 20 April 1994Listed in DSE : 10 July 1994Listed in CSE : 20 October 1996Declaration of Eligibility of Securities for dematerialization : 30 August 2010Dematerialized trading Started : 31 August 2010

Nature of Business : Manufacturing and Marketing of Life Saving I.V Fluids and Pharmaceutical Products.

Dosage Forms : Large Volume Parenterals

Production Area : 1.69 Acers

Authorized Capital : Tk. 10, 00, 00,000Paid up Capital : Tk. 1, 25, 16,000Sales Centre : 13Manpower : 728No. of Products : 41No. of Shareholders : 528

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Declaration of Dividend for 3 years :2009-2010 20.00%2010-2011 20.00%2011-2012 (Proposed) 20.00%

Payment to Govt. Exchequer for 3 years-

2009-2010 Tk. 112,293,6542010-2011 Tk. 103,627,3972011-2012 Tk 59,994,929

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Distribution Network

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4.3. Commitment of Libra

Committed to manufacturing world class Quality products usingmodern technology.Committed to maintaining Quality Management System (QMS)through documentation of all activities of the Companycomplying with International Standard requirement of ISOthrough development of employees at all level by regulartraining and participation.Committed to customer’s satisfaction through service up totheir level of expectation.Libra reviews activities and performance of its operation toensure compliance with commitments.

4.4. Vision

Libra's vision is to embody global pharmaceutical leadershipthrough innovation, culture and growth guided by an unwaveringcommitment to significantly improve the lives ofpatients. Innovation based on bold leadership in science andmedicine resulting in the discovery, development and deliveryof high-quality, differentiated products focused on patientneeds. A culture based on good corporate citizenship thatempowers employees through collaboration, inclusion, trust andtimely decision making. Sustainable growth in corporate valueby leveraging core therapeutic areas, and an industry-leadingpipeline and product portfolio.

4.5. Mission

To attain Vision Libra will devote its resources tomanufacture world class products using modern technology. Tomaintain Quality Management System in line with ISO 9001through documentation of all activities of the company for

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development of employees at all levels by regular training andparticipation. To satisfy the customers through service up to their level ofexpectation.Libra reviews activities and performance of its operation toensure compliance with objectives.

4.6. A Going Concern

The Company has enough ability to carry on business activitiesin the coming days as a going concern and accordingly thefinancial statements have been prepared.

4.7. Libra’sValues

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Figure-1: Libra’s Values

Libra focus on realizing the following values while upholding the highest ethical standards.

DiversityLibra respects and includes a broad range of peoples and ideas in its daily operations.

TeamworkLibra builds strong borderless teams through fairness and promoting shared goals.

CommitmentLibra works to meet its responsibilities to stakeholders on adaily basis.

TransparencyLibra appropriately shares information and promotes dialogue with stakeholders thereby building trust.

InnovationLibra implements bold initiatives on a daily basis.

PassionLibra’s drive comes from perseverance and a strong desire to contribute to patients.

CommunityLibra conducts his business by conforming to the ethics ofour country and share the social responsibility of the lessfortunate.

4.8. Overall Strategic Objectives

Libra realize that, for his purpose, it need to be flexibleand responsive, to satisfy its clients by providing them withwhat they want, when they want it most importantly before

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other competitors can offer it. It is important to recognizethe elements that make its intangible resources, such as, itsability to relate to customers regarding their needs andwants, management style, corporate culture and commitment.These elements will differentiate Libra from its competitorsand contribute towards the development of a sustainablecompetitive edge. Libra’s corporate strategy and guidingprinciples rest firmly on this behalf.

Process Focus

To have all products meet standard of excellenceguidelines.

To continually improve internal process to realizeeffectiveness.

Improve system accuracy and responsiveness. Improve organizational structure. Improve performance measurement and reporting capability. Reduce administrative overhead. Improve financial analysis, controls and audit

capability.

Business Focus

Increase quality. Reduce delivery time. Implement change faster. Increase customer relation. Increase customer loyalty. Introduce new products to new and existing markets. Improve overall productivity and maximize market share. Improve marketing, advertising and public relations. Achieve and maintain outstanding customer service. Continuously broaden customer database by obtaining new

information on customer characteristics and needs.

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People / Learning Focus

To hire, develop and maintain the right people in rightplace.

Employ professionals who create success for customers. Develop broad set of skills useful for customer support. To continually learn and adopt current best practices. Transfer knowledge from leading-edge clients. To align incentives and staff rewards with performance.

4.9. Manufacturing Technologies

Libra is committed to offering high-quality Intravenous fluidto the customer in a timely fashion. To this end, it embracesupply-chain management (a strategy to make the procurement,manufacture, and supply process as efficient as possible);quality-oriented, economical manufacturing methods and itstechnology base; and production systems consistent with globalguidelines for current good manufacturing practice (cGMP).With each member of Libra’s team committed to continuousinnovation, they are working constantly to further enhancetheir technology, quality, and cost-competitiveness throughthe seamless integration of technical development andmanufacturing. Proud of their position as a leading IV Fluidcompany, they will continue to provide their product thatpatients can use with trust and confidence.

PVC bags in which we are filling I.V. Fluids are being usedfor last 40 years with no real world evidence that they havecaused any harm & the containers only made of these PVC canassure storage of blood for 40 days. Libra’s I.V. Fluids arefilled ascetically, sterilized terminally, Labeled properly &then delivered safely to the customer. The production is basedprimarily on imported Raw & Packing materials. Libra’s QualityAssurance System is build up in such a way that QualityAssurance Inspector inspects every steps of processing andtherefore quality is ensured in every steps of productionoperation by following standard procedures. Libra’s Quality

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Control Department work independently & tests every materialsin process to ensure in every steps quality before proceedingto next step by following standard procedures (BP/USP) with anextensive range of analytical techniques & instrumentation.Technical supports including LAL test, Particle count, HPLCanalysis, Validation & Stability Studies are available as apart of our commitment to quality. Libra has already beenrecognized by WHO and ISO ─ 9001 certification as world classmanufacturing of I.V. Fluid.

4.10. Performance

Introduction of new products and businesses have been receivedby new valued consumers. Amino Acid products are nearingcompletion.

4.11. Equity and Share

During the year 2012, there was an up and down movement in ourshare price, the highest share value was Tk. 354.80 and the lowest was Tk. 201.00.

4.12. Respectfulness to Law

The Company is not involved in any work contrary to rules andregulations and relevant Laws of the land. The rules andregulations are duly followed and the duties are preformed inproper time.

4.13. Business Condition

The ongoing global economic challenges and the significantcurrency devaluation continued, impact adversely to itsbusiness as its production fully depended on importedmaterials. Due to this situation beyond Libra’s control they

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could not achieve their production target. However, they aretrying utmost to improve the situation.

4.14. Quality

Libra Infusions Limited is loyal to achieve and maintain thehighest possible standards of quality for our products inorder to ensure that products supplied go above therequirements stipulated by the patients, physicians,customers, retailers, business partners and regulators. Thequality policy pursued by Libra is a continuation andextension of the fundamental principles laid down in theformative years of the company and the success of the policyis assured by the demonstrated involvement and support of theManagement Team towards ongoing continuous improvement.

They have a persistent obsession for intended quality ineverything they do. The intended quality of product isconsidered to be a principal determinant for successfulmarketing of the pharmaceutical products. To achieve this aimtheir Quality Control Department has been consisted withworld-class branded modern machineries (HPLC, GC, IC, AA-Spectrophotometer, IR Spectrophotometer, UV-Spectrophotometer, Potentiometer, Pyrometer, AutomaticEndotoxin Detector and Particle Counter etc.)

Libra is always geared up with highly qualified, skilled,experienced and expert personnel who are always using modernmethodologies approved by USP, BP and Ph Eur. to assuring thatmanufacturing operations are performed in compliance with cGMPas well as with company standards, execute inspection/audits,increase the quality consciousness of the employees, timelyarchiving of documents, preparation of Technical Dossier andGlobal Documentation, handling of Quality Incident in a team,perform analytical Method Validation, Process Validation,Cleaning Validation, Bio- equivalence study, Comparativestudy, ensure Good Laboratory Practice at the laboratory,Carry out stability testing activities and report compilation,

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trend analysis of analytical results, ensure first timequality and follow up to update and inspection readiness,microbiological laboratory controls, ensure proper monitoringto avoid cross contamination etc. Libra is also very seriousto ensure the customer’s requirement with desired potency,efficacy, stability and safety.

With the intention of ensuring compliance of standard qualityof every step responsibilities and accountabilities arewritten down for guidelines and applications of the bestknowledge, skill and motivation for the working group. Inorder to proving best benefits of their products to customers,they support at all times those persons and institutes withwhom they work, specifically Physicians, Nurses, Hospitals,Clinics, Retailers and they are also constantly kept informedof the safe and effective use of libra’s products.

4.15. Diversify the Business

In order to diversify the business of the company themanagement has started a Fisheries Division in a leasedproperty from 2009-2010 of the year and the Board of Directorshave pleasure to inform stakeholders that the initial tradingresults of the Fisheries Division is satisfactory which hasbeen reflected in the accounts.

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Pond at Pubail, Gazipur.

4.16. Research and Development Facilities

Present-day Research and development is of great importance inbusiness as the level of competition, production processes andmethods are rapidly increasing. It is of special importance inthe field of marketing where companies keep an eagle eye oncompetitors and customers in order to keep pace with moderntrends and analyze the needs, demands and desires of theircustomers.

Libra’s team comprising top class formulation scientists withextensive experience of working in leading pharmaceutical & IVFluid companies in the world continuously strives to integratethe advanced technological changes to create competitive edgeand match international standards.

Libra Infusions Limited is a well decorated organizational structure. This R&D expansion will allow the rapid growth of clinical programs and aims to encompass all activities, from drug-target identification to late-stage clinical studies.

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4.17. New products in Process

Libra Infusions’s world harbors many diseases. Althoughmedical science is advancing by leaps and bounds, thereremain many illnesses with no effective cure, and in many ofthese cases the development of a new drug could lead to majoradvances in treatment. This is what is meant by "unmetmedical needs."

Libra Infusions continues its quest to discover innovativeproducts and get them to patients as quickly as possible inorder to address these unmet medical needs.

To increase the sales volume it is essential to launch newproducts every year. It has already completed all formalitiesto introduce Amino Acid in I.V form and KetorolacTromethamine, Dexamethason Sodium Phosphate, TrmadolHydrochloride, Diclofenac Sodium with Liocaine which are ininjectable form. Insha Allah in January, 2013 it will go formanufacturing of these products.

4.18. Expansion and Diversification

Libra Infusions Limited has always given importance to theexpansion program for its growth. The company has set up anew industrial unit. It is expected that on the commissing ofthe new Unit the production capacity of the company may be upto 25 million bags. It has also started production of StopperPlug for using in Saline bag with foreign machinery in its4.19. Leadership

In the modern age good leaders are an enabling force, helpingpeople and organizations to perform and develop, which impliesthat a sophisticated alignment be achieved - of people'sneeds, and the aims of the organization. Today’s entrants with

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proper training & guidance should be tomorrow’s leader.

4.20. Professional Management Capability & Human Resource

Human Resources Capability Building, Talent Management andEmployee Engagement are the key focus of Libra’s HumanResource strategy. Libra has continued to build on itscapabilities in getting the right talent to support thedifferent therapy areas in which it does business. These arebacked by robust management training schemes, hiring of keymanagement personnel, and sales training. With the objectiveof engaging employees and providing them an opportunity topresent their ideas, Libra Infusion Ltd. has encouraged itsemployees to form voluntary empowered teams. These teams areprovided the necessary support to present their ideas to theSenior Leadership/ Management Committee and encouraged toexecute their ideas.

Table-1: Number of Human Resourch in Last Five YearsParticulars 2011-

20122010-2011

2009-2010

2008-2009

2007-2008

Number of Employees

728 853 864

811 795

Officers 288 378

321

303 343

Staff 440 475 543 508 452

Figure – 2: Number of Human Resourch in Last Five Years

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Amount


4.21. Human Resource DevelopmentWith a vision to arrive at a top position in thePharmaceutical Industries and to maintain a firm and dignifiedplace in the competitive market, various steps were taken bythe Company to train in and outside the country and to arrangeworkshops in relevant aspects.

In respect of planning, appointment, selection, training,evaluation, incentive and promotion of manpower, the procedureset by the service rules of the Company were followed. Thenewly recruited officers and employees were brought underorientation and training programs immediately afterappointment. In 2010-2011 a total 365 (three hundred sixtyfive) persons were trained by Company’s own arrangement andthrough different professional organizations. The trainedmanpower had been playing a frontal role in the advancement ofthe Company.

4.22. Corporate Social Responsibility

As a member of today’s rapidly changing global community,libra is striving to adapt to the evolving needs of societyand contribute to the overall health and wellness of ourworld. It is continually reviewing and improving our effortsto lessen our impact on the environment, nurture a workplaceof diversity and inclusion, conduct responsible businesspractices, and uphold the highest ethical standards ineverything from research and development to sales andmarketing. And, it is building partnerships in communitiesthroughout the world to strengthen health systems, increaseaccess to its medicines and find sustainable solutions to thehealth challenges of today, and tomorrow.

Libra’s social contribution initiatives aim to help build ahealthy, spiritually rich society. The four priority areas areeducation of the next generation, study and research,environmental conservation, and community service.

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Libra takes a proactive approach to these initiatives, seekingto communicate with various stakeholders in order to determinehow it can be most helpful as a good corporate citizen. 4.23. Industrial Ecology: Commitment for the Pleasant Environment

The whole world is now under threat of heavy pollution andecological imbalance, Bangladesh is also no exception to that.But the world as a whole is trying to maintain itscharacteristic and criteria in every stage making to loop thatstabilizes the environment system. With the growing need ofincreased population and industrial revolution cannot bedenied. This has created tremendous pressure on the ecologicalbalance by breaking the loop. However, using the moderntechnology, the eco balance loop is being least disturbed withthe friendly environmental behavior of industrial outlets butundoubtedly with further threat. Taking the whole situation into consideration the Company hasset up the industry in Mirpur, an area identified asIndustrial zone adjacent to the National Garden with utmostcare against health hazards to the neighboring people livingoutside the industrial belt.

The Factory is set up on 1.69 acres of land. Administrative,Quality Control and Factory buildings are quite separatemaintaining adequate distance as per requirement under theregulations of RAJUK. The Factory is under constant cleaningprocess with sufficient number of cleaners using modernequipment and best medicines for the purpose. The Companyalways maintains and continues to upgrade its Safety, Healthand Environment (SHE) system is accordance with and inanticipation of regulatory requirements and globaldevelopments.

A beautiful garden inside the premises can be an attraction toanybody. Existence of sufficient number of plants and trees inthe whole area in general and inside the factory premises inparticular help maintaining high standard of ecological

26


balance. A take nearby the factory enhances the scenic beautyand good environment.Factory drainage system is well planned and based on modernconcept. The mechanism and internal environment of theoperation for the production of life saving I.V. Fluid ispleasant. Moreover, set-up a world class Effluent TreatmentPlant (ETP) will be completed within next month.

The Company maintains a high standard of Fire FightingEquipment as per law. The experts of Civil Defense Department,Ministry of Labor and Manpower and the Ministry of Environmentvisit the Factory regularly and expressed their deepsatisfactory over the maintenance standard.

4.24. Contribution to National Exchequer

The Company has made a significant contribution in 2011-2012towards the National Exchequer by paying Tk. 5, 99, 94,929.This is equivalent to 24.13% of the sales.

4.25. Worker’s Profit Participation FundIn 2011-2012 financial year 5% of the company’s profit i.e.Tk. 1, 57,098 has been deposited to the worker’s profitparticipation fund as per relevant law.

Chapter FiveOrganition’s Management System

5.1. Board of Directors

Libra Infusions Limited is administered by Board of Directorswhich is elected by the shareholder. The board has 7 membersof which 1 Chairperson 1 iManaging Director 4 Directors and 1Independent Director. The Board of Directors exercises aiithe powers.

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5.2. Corporate Governance

Corporate governance is the system by which companies aredirected and controlled by management in the best interest ofall the shareholders, thereby ensuring greater transparencyand accurate financial reporting on time. The problem on whichcorporate governance principles are structured is the Board ofDirectors. Your company prides itself for heaving prudentBoard of Directors, who sincerely provides the Management withproper guidance for achieving all its business objectivesensure steady growth and maximize wealth of shareholders.

5.3. Auditors

The financial statement of the company is audited by theauditor, who is appointed by the Board of Directors . Mr. AtaKhan & Co., Chartered Accountants is now auditor of thiscompany. Being eligible they have expressed their willingnessfor re-appointment as auditors of the company for the year2012-2013. In view of above, the Board of Directorsrecommended for approval of the appointment of Mr. Ata Khan &Co. as auditor of the company for the year 2012-2013.

5.4. Election of Director

As per Article 96 and 97 of the Company’s Articles ofAssociation of the Company Dr. Roushon Alam and Ms. MonamiAlam retire by rotation and being eligible, offer them for re-election.

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5.5. Corporate Directory

Board of Director Mrs. Ayesha Alam

Chairperson Dr. Roushon Alam

Managing Director Ms. Saira Mariam Alam

Director Ms. Monami Alam

Director Ms. Shefta Alam

Director Miah Muhammad Shaheedullah FCA

Director Md. Mizanur Rahman FCA

Independent Director

Audit Committee Mr. Md Mizanur Rahman FCA, Independent Director

Chairman Dr. Roushon Alam, Managing Director Member Ms. Monami Alam, Director Member

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Company SecretaryMr. Jahangir Alam

Chief Financial OfficerMr. Shafiqul Islam Bhuyan

Head of Internal AuditorMr. Moklesur RahmanAuditorsAta Khan & Co.Chartered Accountants67, Motijheel C/A (1st Floo r)Dhaka – 1000.

Legal AdvisorAdv. Md. Farid Ahmed M.Com. LLBAdvocate Bangladesh Suprime CourtHouse # 22, Road # 4 Dhanmondi, Dhaka – 1205BankersAl-Arafa Islami Bank Ltd.

Prime Bank Ltd.Dutch Bangla Bank Ltd.Premier Bank Ltd.

Registered & Corporate Head OfficeI/7. Mirpur Industrial Estate, RupnagarSection-2, Dhaka- 1216, Bangladesh.Telephone: 9001179,9004770-1Fax: (880-2) 9035833E-mail: [email protected]:www.libragroupbd.com

InsurersGreen Dulta Insurance Co.Ltd.Republic Insurance Co.Ltd.

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mailto:[email protected]


31

5.6. Corporate Governance Compliance Report

Status of compliance with the conditions imposed by the Securities and Exchange Commission’s Notification No.SEC/CMRRCD/2006/158/Admin/02-08 dated 20th February 2006 issued under section 2CC of the Securities and Exchange Ordinance, 1969

Table-2: Corporate Governance Compliance Report

ConditionNo. Title

Compliance

status

Explanation for non-compliancewith thecondition

1.1 Boards Size (number of Directors - minimum 5and maximum 20)

Complied

1.2 (a) Independent Director (at least one fifth of Directors should be Independent Directors)

Complied

1.2 (b) Independent Director Appointment(should be appointed by the electedDirectors)

Complied

1.3 Director & Chief Executive Officer(preferably be different)

Complied

1.4(a) Directors Report on FinancialStatements(fairness of financial statements)

Complied

1.4(b) Books of Account(maintenance of proper books of accounts)

Complied

1.4(c) Accounting Policies(accounting policies & estimates)

Complied

1.4(d) IAS Applicable in Bangladesh(application & adequate disclosure for any departure)

Complied

1.4(e) System of Internal Control(efficiency of internal control system)

Complied

1.4(f) Going Concern(ability to continue as a goingconcern)

Complied

1.4(g) Deviations in Operating Results(highlighting significant deviations from last year in operating result)

Complied

1.4(h) Key Operating and Financial Data(summarized financial data of atleast preceding three years)

Complied

1.4(i) Declaration of Dividend Complied 1.4(j) Number of Board Meetings

(No. of Board Meetings held and attendance by each director)

Complied

1.4(k) Pattern of Shareholdings(disclosing aggregate number of shares)

Complied

2.1 CFO, HIA & CS Appoint(Three separate persons, each ofdifferent specialized discipline)

Complied

2.2 Board Meeting Attendance(The CFO/CS regularly attend theBoard Meeting)

Complied

3 Audit Committee(should have an audit committee as a sub-committee of the Board of Directors)

Complied

3.1(a) Composition of Audit Committee Complied 3.1(b) Audit Committee Members Appointment Complied 3.1(c) Terms of Service of Audit Committee Complied 3.2(a) Chairman of Audit Committee Complied 3.2(b) Audit committee Chairman’s

QualificationComplied

3.3.1(a) Reporting to the Board of Directors Complied 3.3.1(a)(i)

Report of Conflicts of Interest Complied

3.3.1(a) Defect in the Internal Control Complied

(iii) System3.3.1(a)(iii)

Suspected infringement of laws Complied

3.3.1(a)(iii)

Any other matter Complied

3.3.2 Reporting to the Authorities Complied 3.4 Reporting to the Shareholders Complied 4.00(a) Appraisal of Valuation Services

(none by the external/statutoryauditor)

Complied

4.00(b) Financial information System(none by the external/statutoryauditor)

Complied

4.00(c) Book Keeping or Other Services(none by the external/statutoryauditor)

Complied

4.00(d) Broker-dealer Services(none by the external/statutoryauditor)

Complied

4.00(e) Actuarial Services(none by the external/statutoryauditor)

Complied

4.00(f) Internal Audit Services(none by the external/statutoryauditor)

Complied

4.00(g) Any other Services(none by the external/statutory auditor)

Complied

Chapter SixProduct Features

6.1. Product DetailsThere are different products available in Libra Infusions Limited. The details about products are mentioned bellow:

Table-3: Product Details

Product Name & Details Pack

Size

Trade

Price

(Tk)

VAT(Tk)

TP+VAT(Tk)

MRP(TK)

•LIBOTT5% DextroseFor rehydration at the time of Water deficit, General weakness and Postsurgical intervention. Available in 500 ml & 100ml pack size.

500 ml

36.64 6.05 42.69 48.55

1000 ml

46.55 7.68 54.23 61.70

• LIBOTT-101% DextroseFor the treatment of Jaundice, General weakness, Eclampsia, Pre-eclampsia, During pregnancy & after delivery and post surgical intervention. Available in 500 ml &1000ml pack size

500 ml

42.50 7.01 49.51 56.32

1000 ml

58.24 9.61 67.85 77.16

• LIBOTT-2525% DextroseIt is used in emergency treatment of Severe hypoglycaemia. To reduce cerebro-spinal pressure and energy malnutrition. It is the most extensively used injection in hospital practice. Available in 100 ml & 250 ml pack size

100 ml

27.00 4.46 31.46 35.41

250 ml

44.27 7.30 51.57 58.67

• LIBOTT-S5% Dextrose + 0.9% Sodium

500 ml

36.64 6.05 42.69 48.55

ChlorideFor rehydration during general weakness, Water deficiency along with sodium, Diuresis, Intoxication and post surgical intervention. Available in 500 ml &1000ml pack size

1000 ml

47.33 7.81 55.14 62.71

• LIBOTT-S JR 5% Dextrose + 0.45% Sodium ChlorideIt fulfills water deficitalong with low deficiencyof NaCl, simultaneously it supplies energy for growing children. It alsoexcludes the risk of hypernatreamia in adult where less NaCl deficiency occurs.

500 ml

42.62 7.03 49.65 56.47

• NORMASOL0.9% Sodium ChlorideThis solution is used forcorrection of serious sodium deficit. Its use is essential for haemodialysis procedure. It can be used topically for irrigation of wounds and body cavities. Available in 500 ml &1000ml pack size

500 ml

35.01 5.78 40.79 46.39

1000 ml

43.38 7.16 50.54 57.48

• BABY SALINE5% Dextrose + 0.225% Sodium ChlorideIt fulfills both water deficit along with low deficiency of NaCl, simultaneously it supplies energy for neonates & infants. It also excludes the risk ofhypernatreamia in adult where less NaCl deficiency occurs. Available in 250 ml & 500ml pack size

500 ml

38.05 6.28 44.33 50.42

250 ml

39.69 6.55 46.24 52.60

• DIASOL0.5% Sodium Chloride + 0.652% Sodium Acetate, 3H2O + 0.10% Potassium Chloride. It is used in dehydrationduring Diarrhoea, Cholera, Vomiting and Profuse sweating. Available in 500 ml &1000ml pack size

500 ml

39.69 6.55 46.24 52.60

1000 ml

49.62 8.19 57.81 65.74

• HARTSOL0.6% Sodium Chloride + 0.040% Potassium Chloride+ 0.027% Calcium Chloride, 2H2O +0.65% Sodium Lactate 50% Soln.Mainly used as a fluid and electrolyte replenisher in hypovolaemia caused by trauma, surgery, haemorrage and burn. Available in 500 ml &1000ml pack size

500 ml

39.58 6.53 46.11 52.44

1000 ml

45.67 7.54 53.21 60.51

• LIBRAZOL0.5% MetronidazoleThe most effective antimicrobial agent for the treatment of anaerobic infection. Available in 100 ml pack size

100 ml

37.85 6.25 44.10 49.57

• LIBRACIN0.2% CiprofloxacinThe most active and potent fluoroquinolone for the treatment of bothgram positive and gram negative bacteria including mixed infections. Available in 100 ml pack size

100 ml

80.20

13.23 93.43 106.2

5

• LIBOTT-M4.3% Dextrose + 0.18% Sodium ChlorideIsotonic dextrose saline LIBOTT-M, the possible maintenance fluid throughout the pre & postoperative fluid regime. Available in 500 ml &1000ml pack size

500 ml

35.88 5.92 41.80 47.54

1000 ml

46.56 7.68 54.24 61.70

• LIBRACIN-400Ciprofloxacine Lactate USP 508 eq to Ciprofloxacine USP 400mg Injection

100 ml

1110.00

18.15 128.15 145.7

5

• LIBRETRanitidine HCL 50mg I.V. Injection USP

100 ml

41.51 6.85 48.36 55.00

6.2. New Products

Libra Infusions continue to add new products internationally.It has approximately 250 applications for approval of genericdrugs pending with health agencies around the world andreceived more than 70 generic drug approvals worldwide in2002. During 2002, it expanded its presence in Europe andUSA. It decided to acquire this small business for a moderateprice as a foundation to grow its operations in Europe andUSA. It has hired a top management and research team thatlibra believe can quickly make this business a market leaderin Europe and USA. It believe that demand for generic drugsis going to increase worldwide and that its globalsubsidiaries will position for growth.

Existing Products At this moment Libra Infusions has no pharmaceutical products.

Future Products Soon Libra Infusions will expand his business in the Pharmaceutical arena with the following products:

Pharmaceutical dosage formsPharmaceutical accessories

Chapter SevenComparative Analysisof Organition’s Financial

Position

7.1. Corporate and Financial Report

The objective of corporate good governance is to run theCompany with a sense of accountability to shareholders andthe society as a wholeThe company is trying to follow the “Corporate GovernanceGuideline” in the light of directives given by the Securitiesand Exchange Commission in its notificationNo.SEC/CMRRD/2006-158/Admin/02-04.The Board of Directors has confirmed that, as per CompaniesAct.1994, Sec 184, the following additional statements havebeen incorporated in the Director’s report.

a) The financial statements prepared by the managementpresent fairly the state of affairs of the Company,results of its operation. Cash Flows and Changes inEquity.

b) The Books of Accounts of the Company have been properlymaintained.

http://www.libragroupbd.com/link%20page/pharmaceuticals_products_2.html

http://www.libragroupbd.com/link%20page/pharmaceuticals_products_1.html

c) Principles of accounting have been followed in preparingthe statements of accounts and estimates related toaccounting have been made reasonably and with prudence.

d) The International Standards of Accounting applicable inBangladesh were followed in preparing the financialstatements.

e) The internal control system was proper and effectiveapplication and monitoring was confirmed.

f) The ability of the company as a going concern has beenproved beyond any doubt.

g) There has been no remarkable deviation in theoperational affairs as compared to the previous year.

h) The key operating and financial data for preceding 5years have been shown in the corporate operationalresults.

i) The Corporate governance compliance report has beenincorporated as per proforma supplied by the Securitiesand Exchange Commission

During the year 9 Board Meetings were held and attendance byeach Director is shown below:

Name of the Director Meeting attendedMrs. Ayesha Alam 8Dr. Roushon Alam 9Mrs. Saira Mariam Alam 4Ms. Monami Alam 8Ms. Shefta Alam 4Mr. M. H. Chowdhury 3Mr. Mizanur Rahman FCA 4

7.2. Curent Financial PositionThe current financial reports of Libra Infusions Limited arementioned bellow:

Table-4: Statement of Cash Flows

LIBRA INFUSIONS LIMITEDStatement of Cash Flows

For the year ended 30 June 2011 & 2012

Particulars Amount in BDT.

2011-2012 2010-2011Cash Flows from Operating ActivitiesCash Receipts from Customers Cash Paid to Suppliers, Employees and OthersCash Generated from Operations

Interest Paid Income Tax Paid Net Cash Generated from Operating Activities

Cash Flows from Investing ActivitiesAcquisition of Property, Plant and Equipment Net Cash Used in Investing Activities

Cash Flows from Financing ActivitiesNet (Decrease)/Increase in Long TermBorrowings Net (Decrease)/Increase in Term Borrowings Net (Decrease)/Increase in Short Term borrowings Dividend Paid

Net cash Generated from Financing Activities

Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year

261,545,204(177,219,807)

348,000,771318,688,953)

84,325,397

(29,750,530) (520,640)

29,311,818

(33,536,590) (667,434)

54,054,227

(193,031,132)

(4,892,206)

(64,933,951)

(193,031,132)

39,978,460106,155,111(10,596,650) (635,320)

(64,933,951)

39,965,010170,978,179(133,199,624)(796,260)

134,901,601

(4,075,304)16,608,389

76,947,305

7,121,1489,487,241

12,533,085 16,608,389

Amo

unt of

Tak

a

Figure-3: Statement of Cash Flows of 2011 & 2012

CommentHere it can be said that the cash flow statement of LibraInfusion Limited is not so good than previous year. The totalamount of the year 2010-2011 is 16, 608,389(BDT). But in2011-2012 total amount is 12,533,085(BDT). This is not sogood position.

Table-5: Statement of Changes in Equity for the year ended 30June 2011 & 2012

LIBRA INFUSIONS LIMITEDStatement of Changes in EquityFor the year ended 30 June 2012

Particulars Share capital RevaluationSurplus

GeneralReserve

RetainedEarnings

Total

Balance as at 30 June 2011 Adjustment for Depreciation on Revaluation AssetsTotal Comprehensive Income for 2011 -

12,516,000

1,901,191,595

(4,697,201)

4,000,000

42,903,997

5,806,652

1,960,611,592

(4,697,201)

5,806,652

2012 Cash Dividend of Previous year 2010- 2011

(2,503,200)

(2,503,200)

Balance as at 30 June 2012

12,516,000

1,896,494,394

4,000,000

46,207,449

1,959,217,843

LIBRA INFUSIONS LIMITEDStatement of Changes in EquityFor the year ended 30 June 2011

ParticularsShare

capitalRevaluati

onSurplus

GeneralReserve

RetainedEarnings Total

Balance as at 30June 2010Adjustment for Depreciation on Revaluation AssetsTotal Comprehensive Income for 2010 - 2011 Cash Dividend ofPrevious year 2009- 2010

12,516,000

1,906,009,237

(4,817,642)

4,000,000

38,366,693

7,040,504

(2,503,200)

1,960,611,592

(4,817,642) 7,040,504

(2,503,200)

Balance as at 30June 2011

12,516,000

1,901,191,595

4,000,000

42,903,997

1,960,611,592

CommentHere it can be said that the statement of changes in equityof Libra Infusion Limited is same approximately in bothyears. It means same position of Libra Infusion Limited inboth years. This is not so good position. Table-6: Statement of Comprehensive Income

LIBRA INFUSIONS LIMITEDStatement of Comprehensive Income

For the year ended 30 June 2011 & 2012

Particulars Notes

Amount in BDT.2011-2012 2010-2011

Net Sales Revenue Cost of Goods Sold Gross Profit

Operating Expenses Administrative Expenses Selling, Marketing and Distribution Expenses

Profit from Operations Other Income Finance Cost Net Profit Before Contribution to WPPF

Contribution to WPPF Profit Before Tax Provision for Income Tax Total Comprehensive Income forthe Year Earnings per Share (of BDT. 10.00- each)

4445

4950

5152

53

5456

248,592,174(154,097,075)

351,429,516(224,233,358)

94,495,099 (61,445,505)

127,196,158

(87,345,059)

(10,617,635)(50,827,870)

(11,895,469) (75,449,590)

33,049,594

39,851,099

3,623,497(29,750,530)

2,515,106 (33,536,590)

6,922,561

(157,098)

8,829,615

(300,691)

6,765,463 (958,811)

8,528,924(1,488,420)

5,806,652 7,040,5044.64 5.63

Taka

Taka

Figure-4: Total Comprehensive Income for the Year & Earningsper Share

CommentHere it can be said that the statement of comprehensiveincome of Libra Infusion Limited is not so good than previousprivies year. The total amount of the year 2010-2011 is7,040,504(BDT). But in 2011-2012 total amount is5,806,652(BDT). The earnings per share is not also good thanprevious year. The amount earnings per share in the year2010-2011 are 5.63(BDT). But in 2011-2012 the amount is4.64(BDT). This is not so good position.

Table-7: Statement of Financial Position

LIBRA INFUSIONS LIMITEDStatement of Financial Position

As at 30 June 2011 & 2012

Particulars Notes

Amount in BDT.30.06.201

230.06.201

1AssetsNon - Current AssetsProperty q p , Plant and Equipment

Current Assets Inventories Stores and Supplies 33

31

32333435

2,498,311,352177,332,325

2,315,216,011173,054,485

96,320,074

75,681,21

Accounts Receivable 34 Loans, Advance and Deposits 35Cash and Cash Equivalents 36 Total Assets

Shareholders' Equity And LiabilitiesShareholders' Equity

Issued Share Capital General Reserve Revaluation Surplus Retained Earnings

Non - Current Liabilities Long Term Borrowings Term Borrowings Inter Company Accounts Other Liabilities

Current Liabilities Short Term Borrowings Creditors and Other Payables Taxation Payable

Total Liabilities And Shareholders' Equity

36

37

3839

40

414243

2,161,68123,015,86043,301,62512,533,085

42,584,39835,968,89042,211,59416,608,389

2,675,643,677

2,488,270,496

1,959,217,843

1,960,611,592

12,516,0004,000,0001,896,494,394 46,207,449

12,516,0004,000,0001,901,191,59542,903,997

600,816,843

398,290,516

210,976,954 277,133,29078,950,815 33,755,784

170,998,494170,978,17926,341,00029,972,843

115,608,991

129,368,388

84,286,136

94,882,786

22,768,7578,554,098

26,369,6758,115,927

2,675,643,677

2,488,270,496

Figure-5: Total Assets & Total Liabilities and Shareholders'Equity

CommentHere it can be said that the financial position of LibraInfusion Limited is so good than previous year. The totalamount of the year 2010-2011 is 2,488,270,496 (BDT). But in2011-2012 total amount is 2,675,643,677 (BDT).This is so goodposition.

Table-8: Highlights on Major Items

(Tk.000’s)

PROFIT & LOSS ACCOUNT 2011-2012

2010-2011

%Change

Turnover net 248,592 351,430 (29.26)Gross Profit 94,495 127,196 (25.71)Net Profit before Tax 6,765 8,529 (20.68)

Amou

nt of

Taka

Net Profit after Tax 5,807 7,041 (17.53)Return on paid up capital 4.64 5.63 (17.58)CASH FLOW & INVESTMENTOperating activities 54,054 (4,892) 1005Fixed Assets 2,498,3

112,315,2

157.91

FINANCIAL POSITIONTotal assets 2,675,6

442,488,2

707.53

Paid up capital 12,516 12,516 -Shareholder’s equity 1,959,2

181,960,6

11(0.07)

Earnings per share 4.64 5.63 (17.58)Dividend per share 2.00 2.00 -

CommentHere it can be said that every item of profit & loss accountof Libra Infusion Limited is so not good than previous year.But cash flow & investment and the financial position is sogood than previous year.

Table-9: Financial Perfoemance Last Five yearsAmount in Thousand Taka

Particulars 2011-2012 2010-2011

2009-2010

2008-2009

2007-2008

Authorized Capital 100,000

100,000

100,00

0 100

,000 10

0,000

Paid up Capital

12,516

12,516

12,516 1

2,516 12,516

Net Sales Revenue

248,592 351,429

379,29

4 36

7,527 413,776

Gross Profit

94,495 127,196

138,60

5 13

3,644 136,481

Profit before tax

6,765

8,529

10,247

6,030

8,848

Net Profit after tax

5,807

7,041

7,711

4,372

6,415 Fixed assets 2

,498,31 2,315,

216 2,371,

389,820

297,806

1 679

Net Assets Value( NAV)

1,959,21

8 1,960,612

1,960,

892 8

6,251 84,070

Dividend ( % )

20.00

20.00

20.00

15.00

17.50

Net assets Value per share

1,565.3

7 15,664.84

15,667

.08 6

89.13 671.70

Net Operating Cash Flow per Share

43.19

(39.09)

60.77

(186.41)

189.91

Earnings Per Share

4.64

56.25

61.61

34.93

51.25

Market Price Per Share

293.50

4,100.00

1,900.

00 1,6

00.00 1,447.25

Price earnings Ratio ( Times)

63.25

72.89

30.84

45.80

28.23

Number of Share holders 528

700.00

558.00

619.00

693.00

Sponsors General Public & Other Institutions 524

694.00

551.00

612.00

687.00

ICB including ICB Investors Account 4.00 6.00 7.00 7.00 6.00

CommentHere it can be said that the financial parformance of LibraInfusion Limited in last five years is so not good position.But overall financial position has a satisfactory level. Soit can be said that financial position of Libra InfusionLimited is acceptable level. But it does not mean that it hasreached a good financial position.

Table-10: Value Added Statement

For the year ended 30 June 2011 & 20122011-2012 Taka

% 2010-2011 Taka

%

Turnover 248,592,

174 351,429,5

16Bought -in -Materials & Service

(109,561,252)

(153,398,984)

Value Added139,030,9

22 100198,030,5

32 100ApplicationsDuties and Taxes to Govt. Exchequer

59,994,929 43

103,627,397 52

Salaries and Benefits to Employees

38,598,691 28

47,343,428 24

Interest to lenders 29,750,53

0 2133,536,59

0 17Shareholders Dividend 2,503,200 2 2,503,200 1

Retained by the Company 8,183,572 611,019,91

7 6

Total 139,030,9

22 100139,030,9

22 100

Year: 2011-2012

Year: 2010-2011

Figure-6: Value Added Statement

7.3. Financial ResultsThe financial results of 2010-2011 & 2011-2012 are summarizedbelow:

Table-11: Financial Results

Amount

of T

aka

ParticularsAmount in Taka

2011-2012 2010-2011

Profit before tax 6.765.463 8528924Less: Income tax (958,811) (148842

0)Profit after tax 5,806,652 7040504Retained earnings as per last accounts 42,903,997 3836669

3Retained earnings at the end of theyear

46,207,449 42,903,997

CommentAlthough all items of financial result of the year 2011-2012of Libra Infusion Limited is so not good than previous year.But overall financial position has a satisfactory level. Soit can be said that financial position of Libra InfusionLimited is acceptable in the year 2011-2012. But it does notmean that it has reached a good financial position.

Chapter EightFindings and Analysis

8.1.Findings of the Report

After analyzing the annual report and other papers, theevolution of performance analysis and on the basis of mystudy I have got some findings about the Libra InfusionsLimited. These are mentioned below:

Figure 7:Financial Results

“Current position, problems and prospect of Libra Infusions Limited in competitive market.”

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Transcript of “Current position, problems and prospect of Libra Infusions Limited in competitive market.”