Beacon Pharmaceuticals Ltd------- Prospectus

Light for Life
BEACON
Committee Observations:
RESPONSE TO OBSERVATION OF THE COMMITTEE OF THE DHAKA STOCK EXCHANGE
The committee discussed different aspect and detailed of Beacon Pharmaceuticals Ltd. As reported in the draft
prospectus of the company. The committee observed the following :
1) The company has started its commercial operation only for last 3 (three) years i.e., from September 01, 2006.
2) The company incurred losses in two years (2007 and 2008) out of three years of commercial operations. The
earnings per share for the year ended June 30, 2009 was also very insignificant (basic EPS Tk 0.31).
3) The company has accumulated loss of Tk. (39.21) as on 30.06.09.
4) The committee also observed that a substantial amount (4.33 times of proposed IPO size) has been raised
through private placement., Tk 1,300.00 million and only Tk. 300.00 million is kept for IPO.
5) The committee also observed that previous track record of sponsor/director or other listed company's of the
same sponsor directors in the Exchange is not satisfactory.
Management response:
The above mention observation has been incorporated in the revised prospectus submitted to the SEC on March 25,
2010 and the DSE and CSE on March 30,2010.
Beacon Pharmaceuticals Ltd has started its commercial operation as on 1 st October 2006 by utilizing 1/10 th of it's
production capacity. Because most of the product line was uncompleted. Volume of production as well as sales
volume was very little but by this time beacon has appointed it's most of the employees and started marketing
promotional activities in full swing, which causes large amount of day to day operational expenses. Due to this Beacon
did not reach the break even point in first two years. Low volume of sales and large volume of operational expenses
occurs cumulative loss for first two years is Tk.(39.21)m. But now sales volume is increasing and last year beacon has
earned a profit of Tk.1.85 crore.
So the basis of last year profit the basic EPS was Tk.0.31 but the good sing is that the company is doing well and
going to increase its business as well as earn profit day to day.
The Company was incorporated on 2001 with a paid-up of 60.00 crore from the sponsors and a consortium bank loan
was taken to establish the production plant. Now it is in growing stage & continuous expansion is running. Therefore
the Company faced a hard time in terms of financial condition for its growth and to repay the bank loan. During that
time of financial crisis it has been decided that to meet up immediate needs a pre-setup schedule of raising capital
must be adopted. For this reason, a relatively bigger amount of capital has been raised through private placement.
Raising capital through IPO is an extensive and time consuming procedure. In the course of publishing the prospectus
of IPO several stages of approval are needed from the regulatory body.
Consequently, only to meet up urgent financial support the Company adopted the policy of private placement to raise
its paid-up capital
Beacon Pharmaceuticals Limited is the same sponsor/directorship with Kohinoor Chemicals (BD) Limited. Kohinoor
Chemicals (BD) Limited is a well known company in Bangladesh as well as in the capital market. Since listing the
truck record of the company is satisfactory.
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PROSPECTUS