Square Pharmaceuticals Ltd is a leading Bangladeshi pharmaceutical company established in 1958. It has two factories and produces over 91 pharmaceutical products across 185 dosage forms as well as chemicals and agrovet products. The company utilizes various sources of financing including loans from commercial banks, investment banks, and leasing companies to fund its long-term capital expenditures and working capital needs. Areas of focus for Square include maintaining high product quality standards, increasing its domestic market share, expanding into new international markets like Europe, improving inventory management, and providing more training to staff.

1. Financial Institution & Market
link to Corporate Finance

2. Corporate finance
 Corporate finance is the division of a company that deals with financial and
investment decisions
 Corporate finance is primarily concerned with maximizing shareholder value
through long-term and short-term financial planning and the implementation
of various strategies.

3. Corporate finance areas
 Corporate finance has three main areas of
concern
 a. Capital Budgeting- Long-term investments the firm should take.
 b. Capital structure- Mixture of debt and equity. It used to fund operations.
 c. Working capital management- The firm should manage its everyday
financial activities

4. Profile of Square Pharmaceuticals Ltd.
 Established :1958
 Corporate Headquarters: SQUARE CENTRE 48, Mohakhali Commercial Area,Dhaka
 Factory : Shalgaria, PabnaTown, Pabna
 Constitution : Public Limited Company
 Chairman : Mr. Samson H. Chowdhury
 Managing Director : Mr. Tapan Chowdhury
 Details of Business : Pharmaceutical Products/ Bulk Chemicals/ AgroVet
Products
 Authorized Capital : Tk. 1000 million
 Paid-up Capital : Tk. 496.8 million
 No. of Employees : 2703

5. Profile of Square Pharmaceuticals Ltd.
 Product Range : Pharma (91 products in 185 dosage forms)
 Chemical Division – 7 products
 Agro Vet Division – 7 products

6. When a company borrows money to be paid back at a
future date with interest it is known as debt financing.
It could be in the form of a secured as well as an
unsecured loan.

7. SQUARE take long term and short
term loan from many commercial
bank like ,
 Sonali Bank
 Rupali Bank
 BRAC Bank
 IFIC Bank
 DBBL etc

8. Investment Bank
Investment bank (IB) performs a variety of
services for square.
 AB Bank
 Agrani Bank
 Bangladesh Development Bank
 HSBC

9. Leasing Company
SQUARE take lease from many leasing company and
collect capital
 Phoenix Finance & Investments Limited
 Premier Leasing & Finance Limited
 First Lease Finance Investment Limited (FLFIL)
 Apex Investment

10. IDLC CORPORATE FINANCE
• Term loan.
• Working capital loan.
• Lease financing.
• Project financing.
• Bridge loan.
• Preferred stock.
• Commercial space loan.

11. Term loan……
 Purpose
 Longer tenor financing product tailored to the requirements of land
acquisition, construction, capital expenditure and refinancing.
 Term loan features:
 Loan limit tailored to business requirement.
 Flexible loan tenure.
 Structured repayment.

12. Working capital loan
Accommodates your funding requirement for procuring raw materials, meeting
overhead expenses, or regular operational costs of business. The short term facility
can be of revolving nature, or one-off deals to fill up the funding gap in your
business.
 Loan tenure up to 360 days.
 Structured repayment mode matched with business cash cycle.
 Simple documentation and flexible security package.

13. LEASE FINANCING
An ideal solution to support your capital expenditures pertaining to
industrial machineries and equipment, office transports etc.
Financing up to 100% of procurement cost or net value.
Loan tenure as per business requirement.
Customizable repayment mode.
Simple documentation.

14. PROJECT FINANCING
An extended term loan designed to facilitate any new project
you undertake to diversify business portfolio or to expand
capacity of existing product line.
Stretched loan tenure based on the cash flows.
Financing amount as per standard of debt-equity structure.
Bundle product offerings to fulfill complete financial
requirement

15. BRIDGE LOAN
Short term financing facilities, designed to facilitate your
financial gap during implementation of new projects, expansion
of existing business or restructuring debt.
Loan limit as per business requirement.
Loan tenure up to 360 days.
Highly structured repayment mode.
Highly structured repayment mode

16. COMMERCIAL SPACE LOAN
Offers long term loan to corporate clients for procuring
office/commercial space, factory, warehouse, showroom etc.
Suitable moratorium period as per business needs.
Convenient Loan tenure.
Loan provided against tripartite legal agreement.

17. Recommendation
 1. Quality and control: According to international standard square
pharmaceuticals ltd. should maintain their product quality.
 2. Local market share: At present in Bangladesh square pharmaceuticals is the
market leader in pharmaceutical sector. Its followers and competitors always
try to increase their percentage of market share. So square pharma
concentrate more to increase his market share.
 3. Foreign market: Though SPL captured Asia, Africa, Middle East
pharmaceutical market but the Europe market till now un-captured. So
square pharma should concentrate more in Europe market.
 4. Inventory management: According to the ratio their inventory management
system is struggling they should give this situation topmost priority.
 5. Staff training: Though SPL is a leading company but its maximum staffs are
not well trained. So company should arrange training program.