Background

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 Ltd: Square Pharmaceuticals Limited
is an organization with equal emphasis on Leadership, Technology, Quality and Passion.
Square Pharmaceuticals Ltd. is the leading branded generic pharmaceutical manufacturer
in Bangladesh producing quality essential and other ethical drugs and medicines. It was
established in 1958 and has been continuously in the 1st position among all national and
multinational companies since 1985. And now Square Pharmaceuticals is set on
becoming a high performance global player in the field. Square Pharmaceuticals has
invested in state of the art formulation plants aligned to regulated market standards. Four
plants based on the Dhaka site can produce pharmaceutical products to the highest GMP
specifications. These plants have been designed by internationally recognized firms and
equipped with the best machines that can currently be found on the European and US
markets. Square Pharmaceuticals has also created quality systems and SOPs according to
FDA and EU regulatory agencies specifications.

These four plants are:

• General plant (approved by MHRA)

• Cephalosporin plant (quality systems aligned to MHRA requirements, plant being
prepared for EU regulatory agencies and FDA inspections)
• BFS plant (quality systems aligned to MHRA requirements, plant being prepared
for EU regulatory agencies and FDA inspections)
• Biotech (insulin) plant under construction
Management:

In square company we like to focus several sector’s management policy and their
earnings and investment.

• PHARMACEUTICAL SECTOR.
• SUBSIDIARY OPERATION.
• PRODUCT DEVELOPMENT.

PHARMACEUTICAL SECTOR:

The pharmaceutical sector attained a growth of 16.83% during the year 2009 as
against 6.91%
during the previous year. The national pharma market growth and that of the company
during the past few years are given below:

Year National Market Growth Rate Company’s growth rate

2005 17.50% 14.30%

2006 04.08% 22.94%
2007 15.80% 09.81%
2008 06.91% 18.93%
2009 16.83% 16.72%
PRODUCT DEVELOPMENT
The following table shows the position of existing, discarded and new products
introduced during the year 2009-2010:

Sl. Products Categories Position as Added during Discard

Total Net
No. On 31-03-09 the year
31-03-10
1 Tablet 235 17 -
252
2 Capsule 59 1 -
60
3 Liquid 58 3 -
61
4 Injectable 44 1 -
45
5 E N T Preparation & Others 46 8 -
54
 6 Opthal Preparation & Others 11 1 -
12
7 Dry Syrup 21 - - 21
8 Suppository 6 - - 6
9 Inhaler 12 2 -
14
10 Isulin - 3 - 3
11 Basic Chemical 9 - 1
8
12 Pellet 7 - - 7
13 Tablet, Powder, Liquid,
Injectable -AgroVet 29 3 -
32
14 Aerosol & Pesticide 19 - - 19

Total 556 39 1
594

SUBSIDIARY OPERATION
SCL has fully implemented the pharmaceuticals
Square Cephalosporins Ltd. (SCL):
project for production of Drugs & Medicines at Kaliakoir, Gazipur and also has been in
commercial operation since November 2006. The operations of the Company have
been profitable since inception. The Company made additional investment of Tk.
141,037,748 during the year 2009-2010.

Square Biotechs Ltd. (SBL):

The company was incorporated on June 12, 2006 with Authorised Capital of Tk. 100
crore of which Tk. 67,000,000 was paid up. SPL holds 99.25% shares of the company.
As the company could not commence business due to technical problems, the
management adjusted the assets against share money deposit, bank loans and
ceased /suspended the operation for the time being as detailed in the Directors'
Report.

Square Multi Fabrics Ltd. (SMFL):

The SMFL was incorporated on June 24, 2008 with Authorised Capital of Tk. 50 crore
of which Tk. 100,000,000 was paid up. SPL holds 99.50% shares of the company. SPL
has also made a share money deposit of Tk. 150,000,000 as on 31 March 2010. As on
31 March 2010 the company has incurred a Capital Investment.