Third Quarter

Financial Statement 2018-2019

(Unaudited)

SQUARE PHARMACEUTICALS LTD.

(Consolidated and Separate)
 SQUARE PHARMACEUTICALS LTD.
AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Un-audited)

As At 31 March 2019

Particulars Notes 31-03-2019 30-06-2018

Taka Taka
ASSETS:
Non-Current Assets: 33,654,632,772 32,831,465,294
Property, Plant and Equipment-Carrying Value 2 20,900,310,153 20,545,437,633
Investment - Long Term (at Cost) 746,263,983 940,754,391
Investment - Associates Undertaking 9,035,913,032 8,454,064,733
Investment in Marketable Securities (Fair Value) 2,972,145,604 2,891,208,537
Current Assets: 36,485,535,133 28,441,536,241
Inventories 3 4,724,885,107 4,432,935,118
Trade Debtors 1,598,447,247 1,615,544,248
Advances,Deposits and Prepayments 4 3,277,530,415 2,280,668,747
Short Term Loan 5 1,561,672,228 3,131,975,363
Cash and Cash Equivalents 6 25,323,000,136 16,980,412,765
TOTAL ASSETS 70,140,167,905 61,273,001,535

SHAREHOLDERS' EQUITY AND LIABILITIES:

Shraeholders' Equity: 64,659,127,502 57,816,566,831
Share Capital 7,890,084,660 7,373,910,900
Share Premium 2,035,465,000 2,035,465,000
General Reserve 105,878,200 105,878,200
Tax Exemption Reserve 2,211,743,936 1,949,557,722
Gain on Marketable Securities (Unrealized) 173,825,919 192,272,252
Retained Earnings 52,242,129,787 46,159,482,757

Non Controlling Interest 7 - 24,901,060

Non-Current Liabilities: 1,349,839,544 1,231,133,152

Deffered Tax Liability 8 1,349,839,544 1,231,133,152

Current Liabilities: 4,131,200,859 2,200,400,492

Trade Creditors 679,122,575 524,676,136
Liabilities for Expenses 9 14,044,139 89,665,092
Liabilities for Other Finance 10 3,438,034,145 1,586,059,264

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 70,140,167,905 61,273,001,535

Net Assets Value per Share (NAV) 81.95 73.28

Number of Shares used to compute NAV 789,008,466 789,008,466

Sd/- Sd/- Sd/-

Samuel S Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Un-audited)

For the 3rd Quarter Ended 31 March 2019

Particulars Notes Nine Months Results Third Quarter Results

Jul'2018-Mar'2019 Jul'2017-Mar'2018 Jan'2019-Mar'2019 Jan'2018-Mar'2018
Taka Taka Taka Taka

GROSS TURNOVER 11 37,306,477,161 34,247,876,391 12,563,436,829 11,386,481,321

Less: Value Added Tax 5,065,337,207 4,675,332,513 1,640,696,083 1,534,575,325
NET TURNOVER 32,241,139,954 29,572,543,878 10,922,740,746 9,851,905,996

Cost of Goods Sold 12 (15,894,001,782) (14,637,949,898) (5,705,189,069) (4,990,537,200)

GROSS PROFIT 16,347,138,172 14,934,593,980 5,217,551,677 4,861,368,796
OPERATING EXPENSES: (5,798,199,446) (5,114,579,538) (1,723,986,060) (1,531,671,187)
Selling & Distribution Expenses 13 (4,925,073,721) (4,362,937,541) (1,459,987,703) (1,312,803,739)
Administrative Expenses 14 (873,079,148) (751,561,293) (263,989,151) (218,864,909)
Finance Cost (46,577) (80,704) (9,206) (2,539)
PROFIT FROM OPERATIONS 10,548,938,726 9,820,014,442 3,493,565,617 3,329,697,609
Other Income 15 1,649,794,395 1,382,694,820 648,188,968 442,208,025
PROFIT BEFORE WPPF 12,198,733,121 11,202,709,262 4,141,754,585 3,771,905,634
Allocation for WPPF (589,347,451) (538,757,521) (205,566,827) (179,614,553)
PROFIT BEFORE TAX 11,609,385,670 10,663,951,741 3,936,187,758 3,592,291,081
Income Tax Expenses-Current (2,826,172,306) (2,484,711,089) (1,143,617,179) (830,741,122)
Income Tax Expenses-Deferred (118,706,392) (50,609,316) 26,377,627 (28,305,136)
PROFIT AFTER TAX 8,664,506,972 8,128,631,336 2,818,948,206 2,733,244,823
Profit/(Loss) from Associate Undertakings 756,013,474 721,511,459 299,022,486 245,274,541
PROFIT AFTER TAX 9,420,520,446 8,850,142,795 3,117,970,692 2,978,519,364
Other Comprehensive Income:
Gain/(Loss) on Marketable Securities (Unrealized) (18,446,333) (348,214,605) (27,231,875) (442,802,490)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 9,402,074,113 8,501,928,190 3,090,738,817 2,535,716,874
Profit Attributable to:
Owners of the Company 9,413,843,573 8,840,211,479 3,118,611,493 2,975,818,803
Non Controlling Interest 6,676,873 9,931,316 (640,801) 2,700,561
9,420,520,446 8,850,142,795 3,117,970,692 2,978,519,364
Total Comprehensive Income Attibutable to:
Owners of the Company 9,395,498,538 8,492,115,459 3,091,379,618 2,533,332,534
Non Controlling Interest 6,575,575 9,812,731 (640,801) 2,384,340
9,402,074,113 8,501,928,190 3,090,738,817 2,535,716,874

Earnings Per Share (EPS) 11.93 11.20 3.95 3.77

Number of Shares used to compute EPS 789,008,466 789,008,466 789,008,466 789,008,466

Sd/- Sd/- Sd/-

Samuel S. Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Un-audited)

For the 3rd Quarter Ended 31 March 2019

Particulars Share Share General Tax Gain on Retained Non Total

Capital Premium Reserve Exemption Marketable Earnings Controlling
Reserve Securities Interest
(Unrealized)
Taka Taka Taka Taka Taka Taka Taka Taka
At 30 June 2018 7,373,910,900 2,035,465,000 105,878,200 1,949,557,722 192,272,252 46,159,482,757 24,901,060 57,841,467,891
Transfer to Tax Exemption Reserve - - - 262,186,214 - (262,186,214) - -
Transfer for Merger of Square Herbal & Nutraceuticals Ltd. - - - - - 101,771,355 - 101,771,355
Total Comprehensive Income (Jul'2018-Mar'2019) - - - - (18,446,333) 9,413,843,573 6,676,873 9,402,074,113
Transfer to Payable - - - - - - (31,577,933) (31,577,933)
Cash Dividend (2017-2018) - - - - - (2,654,607,924) - (2,654,607,924)
Stock Dividend (2017-2018) 516,173,760 - - - - (516,173,760) - -
At 31 March 2019 7,890,084,660 2,035,465,000 105,878,200 2,211,743,936 173,825,919 52,242,129,787 - 64,659,127,502

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)

For the 3rd Quarter Ended 31 March 2018

Particulars Share Share General Tax Gain on Retained Non Total

Capital Premium Reserve Exemption Marketable Earnings Controlling
Reserve Securities Interest
(Unrealized)
Taka Taka Taka Taka Taka Taka Taka Taka
At 30 June 2017 6,859,452,000 2,035,465,000 105,878,200 852,508,043 596,561,713 38,577,835,254 12,674,141 49,040,374,351
Total Comprehensive Income (Jul'2017-Mar'2018) - - - - (348,214,605) 8,840,211,479 9,931,316 8,501,928,190
Transfer to Tax Exemption Reserve - 794,505,277 - (794,505,277) - -
Cash Dividend (2016-2017) - - - - - (2,400,808,200) - (2,400,808,200)
Stock Dividend (2016-2017) 514,458,900 - - - - (514,458,900) - -
At 31 March 2018 7,373,910,900 2,035,465,000 105,878,200 1,647,013,320 248,347,108 43,708,274,356 22,605,457 55,141,494,341

Sd/- Sd/- Sd/-

Samuel S Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Un-audited)

For the 3rd Quarter Ended 31 March 2019

Particulars 3rd Quarter Ended 3rd Quarter Ended

31 March 2019 31 March 2018
Taka Taka
Cash Flows From Operating Activities:
RECEIPTS:
Collections from Sales 37,418,375,547 34,581,209,640
Exchange Fluctuation Gain 24,967,487 75,725,804
Others 120,764,871 133,551,671
37,564,107,905 34,790,487,115
PAYMENTS:
Purchase of Raw and Packing Materials 11,084,222,176 10,741,519,513
Manufacturing and Operating Expenses 9,915,035,425 8,394,259,088
Value Added Tax 5,065,337,207 4,675,332,513
Finance Cost 46,577 80,704
Income Tax 2,241,952,397 2,352,545,874
Workers Profit Participation Fund 235,127,033 316,647,149
Others 76,386,887 8,137,080
28,618,107,702 26,488,521,921
Net cash generated from operating activities 8,946,000,203 8,301,965,194

Cash Flows From Investing Activities:

Purchase of Fixed Assets (1,643,208,481) (2,385,582,678)
Pre-operating Expenses - (11,283,964)
Disposal of Fixed Assets - 3,868,042
Investment 95,107,009 (1,553,190,566)
Short Term Loan 1,570,303,135 (3,709,927,249)
Gain on Sale of Marketable Securities 87,140,242 272,557,900
Interest Received 705,679,468 648,789,911
Dividend Received 314,665,678 198,193,722
Net cash used in investing activities 1,129,687,051 (6,536,574,882)
Cash Flows From Financing Activities:
Dividend Paid (1,817,785,447) (1,609,447,740)

Net cash used in financing activities (1,817,785,447) (1,609,447,740)

Increase in Cash and Cash Equivalents 8,257,901,807 155,942,572
Cash and Cash Equivalents at the Opening 16,980,412,765 15,768,683,854
Cash and Cash Equivalents at the Opening of SHNL 84,685,564 -
Cash and Cash Equivalents at the Closing 25,323,000,136 15,924,626,426

Net Operating Cash Flow per Share (NOCF) 11.34 10.52

Number of Shares used to compute NOCF 789,008,466 789,008,466

Sd/- Sd/- Sd/-

Samuel S Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
Notes to the Consolidated Interim Financial Statements
For the 3rd Quarter Ended December 31, 2019

1. Basis of Preparation of the Consolidated Interim Financial Statements:

These Financial Statements (They) are the unaudited Consolidated Interim Financial Statement (here after 'the
Consolidated Interim Financial Statements') of Square Pharmaceuticals Ltd., Square Formulations Ltd. (SFRL) and
Square Herbal & Nutraceuticals Ltd. (SHNL), Companies incorporated in Bangladesh under companies act and Square
Pharmaceuticals Kenya EPZ Limited incorporated in Kenya under companies act 2015, Kenya, for the 3rd Quarter Ended
on December 31, 2019 (here after the interim period). They are prepared in accordance with the Bangladesh
Accounting Standard (BAS-34) 'Interim Financial Reporting'. These financial statement should read in conjunction with
the Annual Financial Statements as of June 30, 2018, as they provide an update of previous reported information.

The accounting policies and presentation used are consistent with those used in the Annual Financials, except where
noted below, Where necessary, the comparative figues have been reclassified or extended from the previously
reported Interim Financial Statements to take into account any presentational changes made in the Annual Financial
Statements or in these Interim Financial Statements.
The preparation of the financial statements requires management to make estimates and assumptions that affect the
reported amounts of revenue, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the
Interim Financial Statement. If in the future such estimates and assumptions, which are based on management 's best
judgement at the date of the Interim Financial Statements, deviate from the actual circumstances, the original
estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

We understand that our business is growing every year that means our assets are performing according to intension of
procurement and in sum up the discounted future cash flow from the operation of the assets would be positive if we
dispose those assets at the date of financial reporting. But presently we have on intension to dispose these assets, so it
is not required to record the impairment gain as provisions of BAS-36.

The company operates in industries where significant seasonal or cyclical variations in total sales are not experienced
during the reporting period.
The company has no reportable operating segments as per BFRS-8.

Figures have been rounded off to the nearest Taka.

There is no significant even after the end of the interim period that has to be reflected in the financial statements for
the interim period except.

These financials include business result and financial positions of Square Formulations Ltd. for the period ended and as
on December 31,2018. It is included in consolidation to give as apple to apple comparative financial position in
comparison with Financial Statement of Quarter 03, 2018 of Square Pharmaceuticals Ltd.
The Hon'ble High Court Division of the Supreme Court of Bangladesh has sanctioned the Scheme of Amalgation of
Square Formulations Ltd. and Square Herbal & Nutraceuticals Ltd. with Square Pharmaceuticals Ltd. On 29th October,
2018. The merger have been executed with effect from January 01, 2019.

31-03-2019 30-06-2018
2. CONSOLIDATED PROPERTY, PLANT AND EQUIPMENT: Tk. 20,900,310,153
Details of Property, Plant and Equipment and Depreciation as at 31 March 2019 are as follows:
This is arrived at as follows:
Fixed Assets at Cost:
Opening Balance 36,634,171,899 33,470,077,571
Add: Amount of Square Formulation Ltd. due to Merger 5,710,600 -
Add: Amount of Square Herbal & Nutraceuticals Ltd. due to Merger 460,443,540 -
Net Addition during the Period/Year 1,510,483,618 4,863,597,930
38,610,809,657 38,333,675,501
Sales/Transfer during the Period/Year - (1,699,503,602)
Closing Balance 38,610,809,657 36,634,171,899
 31-03-2019 30-06-2018
Accumulated Depreciation:
Opening Balance 16,088,734,266 14,146,509,407
Add: Amount of Square Formulation Ltd. due to Merger 152,211,707 -
Add: Amount of Square Herbal & Nutraceuticals Ltd. due to Merger 119,892,548 -
Charged during the Period/ Year 1,349,660,983 1,997,935,652
17,710,499,504 16,144,445,059
Sales/Transfer during the Period/Year - (55,710,793)
17,710,499,504 16,088,734,266
Carrying Value Tk. 20,900,310,153 20,545,437,633

3. CONSOLIDATED INVENTORIES: Tk. 4,724,885,107

The break-up is as under:
Raw Materials 1,673,284,740 1,389,487,814
Packing Materials 624,398,305 548,723,855
Work-in-Process 289,000,893 258,840,704
Finished Goods 1,281,043,115 1,195,194,484
Spares & Accessories 535,478,107 535,109,509
Goods- in-Transit 321,679,947 505,578,752
Tk. 4,724,885,107 4,432,935,118

4. CONSOLIDATED ADVANCES, DEPOSITS & PREPAYMENTS : Tk. 3,277,530,415

This consists of as follows:
Advances: 1,500,525,108 1,037,087,589
Employees 226,806,024 190,480,656
Land Purchase 177,811,887 114,804,755
Suppliers 1,095,907,197 531,802,178
Income Tax - 200,000,000
Deposits: 1,744,223,472 1,200,845,735
Value Added Tax 450,083,188 544,027,259
Earnest Money & Security Deposit 235,157,462 158,770,575
Interest on Fixed Deposit Receipts 1,058,982,822 488,240,998
Others - 9,806,903
Prepayments: 32,781,835 42,735,423
Office Rent 10,706,559 6,385,565
Insurance Premium 22,075,276 36,349,858
Tk. 3,277,530,415 2,280,668,747

5. CONSOLIDATED SHORT TERM LOAN (Unsecured): Tk. 1,561,672,228

This consists of as follows:
(a) Square Textiles Ltd. 1,020,376,322 1,385,741
(b) Square Fashions Ltd. 541,295,906 79,314
(c) Square Denims Ltd. - 2,168,142,032
(d) Square Apparels Ltd. - 780,464,229
(e) Square Herbal & Nutraceuticals Ltd. - 181,904,047
Tk. 1,561,672,228 3,131,975,363

6. CONSOLIDATED CASH AND CASH EQUIVALENTS: Tk. 25,323,000,136

This is made up as follows:
(a) Cash in Hand 46,702,838 5,939,209
(b) Cash at Bank: 25,276,297,298 16,974,473,556
* Current Account 1,854,544,607 1,683,199,425
* STD Account 274,059,673 214,854,684
* Fixed Deposit Account (BD Taka) 20,303,791,517 12,713,244,578
* Fixed Deposit Account (USD) 2,278,432,989 1,936,582,928
* Export Retention Quota Account (USD) 523,859,309 399,067,138
* Margin Held Account (USD) 41,609,203 27,524,803
Tk. 25,323,000,136 16,980,412,765
 31-03-2019 30-06-2018
7. NON CONTROLLING INTEREST: Tk. Nil
This represents non controlling interest of Square Formulations Ltd. is as follows:

Paid-up Capital (Investment) 500,000 500,000

Retained Earnings 31,077,933 24,401,060
31,577,933 24,901,060
Transfer to Payable (31,577,933) -
Tk. - 24,901,060

8. CONSOLIDATED DEFERRED TAX LIABILITY: Tk. 1,349,839,544

This represents provision is made for deferred income tax to pay future income tax liability for temporary differences
which
Openingis arrived
Balanceat as follows: 1,231,133,152 1,129,233,846
Addition during the Period 118,706,392 101,899,306
Closing Balance Tk. 1,349,839,544 1,231,133,152

9. CONSOLIDATED LIABILITIES FOR EXPENSES: Tk. 14,044,138

This consists of as follows:
Accrued Expenses 13,974,561 89,334,542
Audit Fees 69,577 330,550
Tk. 14,044,138 89,665,092

10. CONSOLIDATED LIABILITIES FOR OTHER FINANCE: Tk. 3,438,034,145

This consists of as follows:
Sundry Creditors 1,575,140,857 446,877,055
Income Tax (Deduction at Source) 13,857,160 56,596,629
Retention Money 1,162,730 3,619,330
Workers' Profit Participation Fund and Welfare Fund 1,217,486,908 863,266,490
Income Tax Payable (Note-10.1) 630,386,490 215,699,760
Tk. 3,438,034,145 1,586,059,264

10.1 INCOME TAX PAYABLE: Tk. 630,386,490

This is arrived at as follows:
Opening balance 215,699,760 241,126,028
Add: Amount of Square Herbal & Nutraceuticals Ltd. due to Merger 30,466,821 -
Provision made for the Period/Year 2,826,172,306 3,255,148,172
Tax Paid (Including Advance Income Tax during the Period/Year) (2,441,952,397) (3,280,574,440)
Tk. 630,386,490 215,699,760

2018-2019 2017-2018
(Jul'2018-Mar'2019) (Jul'2017-Mar'2018)
11. CONSOLIDATED GROSS REVENUE: Tk. 37,306,477,161

This consists of as follows:

Square Pharmaceuticals Ltd. 31,035,096,143 25,801,841,891
Square Formulations Ltd. 6,271,381,018 8,446,034,500
Tk. 37,306,477,161 34,247,876,391

12. CONSOLIDATED COST OF GOODS SOLD: Tk. 15,894,001,782

Materials 11,032,644,933 9,932,046,358

Factory Overhead 4,861,356,849 4,705,903,540
Tk. 15,894,001,782 14,637,949,898
 31-03-2019 30-06-2018

13. CONSOLIDATED SELLING & DISTRIBUTION EXPENSES: Tk. 4,925,073,721

This consists of as follows:
Salaries and Allowances 862,524,946 781,801,378
Travelling and Conveyance 85,062,197 73,244,466
Printing and Stationery 52,423,298 45,791,830
Postage, Telephone, Fax & Telex 40,238,220 29,727,953
Electricity, Gas and Water 19,351,650 17,513,899
Office and Godown Rent 16,126,304 17,000,958
Repairs and Maintenance including car maintenance 291,762,965 263,727,663
Govt. Taxes and Licence Fees 24,765,093 16,350,494
Field Staff Salaries, Allowances, TA and DA 1,231,658,782 1,070,662,141
Marketing and Promotional Expenses 930,564,727 847,625,565
Delivery and Packing Expenses 88,403,423 83,731,143
Export Expenses 77,755,142 65,409,323
Special Discount 803,677,070 694,627,292
Security Services 51,491,975 51,956,752
Depreciation 142,013,230 114,833,212
Other Expenses 207,254,699 188,933,472
Tk. 4,925,073,721 4,362,937,541

14. CONSOLIDATED ADMINISTRATIVE EXPENSES: Tk. 873,079,148

This consists of as follows:
Salaries and Allowances 273,710,580 247,092,790
Directors' Remuneration 50,822,009 54,866,881
Travelling and Conveyance 98,689,277 86,461,559
Printing and Stationery 12,324,684 10,706,302
Postage, Telephone, Internet 7,173,710 7,098,127
Electricity, Gas & Water 19,284,921 16,136,887
Tiffin and Refreshment 48,207,832 40,738,101
Repairs and Maintenance 117,120,233 106,257,059
Bank Charges 11,037,141 14,407,524
Insurance Premium 9,902,467 9,050,566
Govt. Taxes, Stamp Duty & Licence Fee 7,459,839 6,462,892
Security Services 33,827,881 29,062,152
Legal Charges 3,115,800 1,907,175
Depreciation 80,356,543 70,331,970
Software & Hardware Support Services 60,651,409 15,691,353
Other Expenses 39,394,822 35,289,955
Tk. 873,079,148 751,561,293

15. CONSOLIDATED OTHER INCOME: Tk. 1,649,794,395

This is arrived at as follows:
Bank Interest 1,137,498,615 782,452,032
Interest on Loan to Sister Concern 138,922,677 37,340,724
Dividend 140,500,503 86,995,030
Commission Received 51,150,205 65,231,744
Gain on Marketable Securities (Realized) 87,140,242 272,557,900
Foreign Exchange Fluctuation Gain 24,967,487 75,725,804
Others 69,614,666 62,391,586
Tk. 1,649,794,395 1,382,694,820
 SQUARE PHARMACEUTICALS LTD.
STATEMENT OF FINANCIAL POSITION (Un-audited)
As At 31 March 2019

Particulars Notes 31-03-2019 30-06-2018

Taka Taka

ASSETS:
Non-Current Assets: 26,901,311,357 26,132,724,160
Property, Plant and Equipment-Carrying Value 2 20,841,052,332 18,271,557,962
Investment - Long Term (at Cost) 3,088,113,421 5,381,098,073
Investment in Marketable Securities (Fair Value) 2,972,145,604 2,480,068,125
Current Assets: 36,318,869,871 27,196,589,272
Inventories 3 4,724,885,107 3,642,090,783
Trade Debtors 1,598,447,247 1,587,211,300
Advances,Deposits and Prepayments 4 3,225,110,760 2,131,347,122
Short Term Loan 5 1,561,672,228 3,131,975,363
Cash and Cash Equivalents 6 25,208,754,529 16,703,964,704

TOTAL ASSETS 63,220,181,228 53,329,313,432

SHAREHOLDERS' EQUITY AND LIABILITIES:

Shareholders' Equity: 57,778,127,762 46,662,876,378
Share Capital 7,890,084,660 7,373,910,900
Share Premium 2,035,465,000 2,035,465,000
General Reserve 105,878,200 105,878,200
Tax Exemption Reserve 2,211,743,936 -
Gain on Marketable Securities (Unrealized) 173,825,919 215,730,933
Retained Earnings 45,361,130,047 36,931,891,345

Non-Current Liabilities: 1,349,839,544 1,126,645,973

Deffered Tax Liability 7 1,349,839,544 1,126,645,973

Current Liabilities: 4,092,213,922 5,539,791,081

Trade Creditors 671,730,249 4,414,979,709
Liabilities for Expenses 8 14,027,461 89,622,042
Liabilities for Other Finance 9 3,406,456,212 1,035,189,330

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 63,220,181,228 53,329,313,432

Net Assets Value per Share (NAV) 73.23 59.14

Number of Shares used to compute NAV 789,008,466 789,008,466

Sd/- Sd/- Sd/-

Samuel S Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Un-audited)
For the 3rd Quarter Ended 31 March 2019

Particulars Notes Nine Months Results Third Quarter Results

Jul'2018-Mar'2019 Jul'2017-Mar'2018 Jan'2019-Mar'2019 Jan'2018-Mar'2018
Taka Taka Taka Taka

GROSS TURNOVER 10 31,035,096,143 25,801,841,891 12,563,436,829 8,671,285,050

Less: Value Added Tax 4,141,934,644 3,439,281,058 1,640,696,083 1,143,032,126
NET TURNOVER 26,893,161,499 22,362,560,833 10,922,740,746 7,528,252,924
COST OF GOODS SOLD 11 (13,513,683,420) (11,432,614,991) (5,760,189,070) (3,856,416,937)
GROSS PROFIT 13,379,478,079 10,929,945,842 5,162,551,676 3,671,835,987

OPERATING EXPENSES: (5,747,721,508) (5,044,911,060) (1,670,573,409) (1,757,474,770)

Selling & Distribution Expenses 12 (4,881,044,092) (4,295,075,383) (1,409,987,703) (1,488,955,992)
Administative Expenses 13 (866,646,383) (749,754,973) (260,579,569) (268,516,239)
Finance Cost (31,033) (80,704) (6,137) (2,539)

PROFIT FROM OPERATIONS 7,631,756,571 5,885,034,782 3,491,978,267 1,914,361,217

Other Income 14 2,777,740,339 2,766,702,390 823,265,313 850,644,407
PROFIT BEFORE WPPF 10,409,496,910 8,651,737,172 4,315,243,580 2,765,005,624
Allocation for WPPF (495,690,329) (411,987,484) (205,487,789) (131,666,934)
PROFIT BEFORE TAX 9,913,806,581 8,239,749,688 4,109,755,791 2,633,338,690
Income Tax Expenses-Current (2,305,939,017) (1,957,213,307) (1,013,876,299) (628,121,878)
Income Tax Expenses-Deferred (101,171,884) (28,969,543) 26,377,627 (21,124,639)
PROFIT AFTER TAX 7,506,695,680 6,253,566,838 3,122,257,119 1,984,092,173
Other Comprehensive Income:
Gain/(Loss) on Marketable Securities (Unrealized) 1,813,228 (324,497,513) (27,231,875) (379,558,161)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 7,508,508,908 5,929,069,325 3,095,025,244 1,604,534,012

Earnings Per Share (EPS) 9.51 7.93 3.96 2.51

Number of Shares used to compute EPS 789,008,466 789,008,466 789,008,466 789,008,466

Sd/- Sd/- Sd/-

Samuel S Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
STATEMENT OF CHANGES IN EQUITY (Un-audited)
For the 3rd Quarter Ended 31 March 2019

Particulars Share Share General Tax Gain on Retained Total

Capital Premium Reserve Exemption Marketable Earnings
Reserve Securities
(Unrealized)
Taka Taka Taka Taka Taka Taka Taka

At 30 June 2018 7,373,910,900 2,035,465,000 105,878,200 - 215,730,933 36,931,891,345 46,662,876,378

Transfer for Merger of Square Formulation Ltd. - - - 2,211,743,936 (43,718,242) 3,991,553,351 6,159,579,045
Transfer for Merger of Square Herbal & Nutraceuticals Ltd. - - - - - 101,771,355 101,771,355
Total Comprehensive Income (Jul'2018-Mar'2019) - - - 1,813,228 7,506,695,680 7,508,508,908
Cash Dividend (2017-2018) - - - - (2,654,607,924) (2,654,607,924)
Stock Dividend (2017-2018) 516,173,760 - - - (516,173,760) -
At 31 March 2019 7,890,084,660 2,035,465,000 105,878,200 2,211,743,936 173,825,919 45,361,130,047 57,778,127,762

STATEMENT OF CHANGES IN EQUITY (Un-audited)

For the 3rd Quarter Ended 31 March 2018

Particulars Share Share General Gain on Retained Total

Capital Premium Reserve Marketable Earnings
Securities
(Unrealized)
Taka Taka Taka Taka Taka Taka
At 30 June 2017 6,859,452,000 2,035,465,000 105,878,200 573,534,470 31,627,632,641 41,201,962,311
Total Comprehensive Income (Jul'2017-Mar'2018) - - - (324,497,513) 6,253,566,838 5,929,069,325
Cash Dividend (2016-2017) - - - - (2,400,808,200) (2,400,808,200)
Stock Dividend (2016-2017) 514,458,900 - - - (514,458,900) -
At 31 March 2018 7,373,910,900 2,035,465,000 105,878,200 249,036,957 34,965,932,379 44,730,223,436

Sd/- Sd/- Sd/-

Samuel S Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
STATEMENT OF CASH FLOWS (Un-audited)
For the 3rd Quarter Ended 31 March 2019

Particulars 3rd Quarter Ended 3rd Quarter Ended

31 March 2019 31 March 2018
Taka Taka
Cash Flows From Operating Activities:
RECEIPTS:
Collections from Sales 32,704,647,807 26,194,616,608
Exchange Fluctuation Gain 24,183,659 75,488,676
Others 1,099,773,041 1,458,427,608
33,828,604,507 27,728,532,892
PAYMENTS:
Purchase of Raw and Packing Materials 9,041,258,285 8,158,188,127
Manufacturing and Operating Expenses 9,597,661,143 7,829,272,024
Value Added Tax 4,141,934,644 3,439,281,058
Finance Cost 31,033 80,704
Income Tax Expenses 1,850,119,648 1,865,763,372
Workers Profit Participation Fund 239,271,770 308,667,919
Others 76,404,678 7,095,882
24,946,681,201 21,608,349,086
Net cash generated from operating activities 8,881,923,306 6,120,183,806

Cash Flows From Investing Activities:

Purchase of Fixed Assets (1,536,397,545) (2,296,681,594)
Disposal of Fixed Assets - 3,868,042
Investment 111,168,382 (1,467,477,961)
Short Term Loan 1,570,303,135 (1,893,883,777)
Gain on Sale of Marketable Securities 64,229,169 228,670,830
Interest Received 705,679,468 646,747,050
Dividend Received 313,133,178 192,293,722
Net cash used in investing activities 1,228,115,787 (4,586,463,688)
Cash Flows From Financing Activities:
Dividend Paid (1,817,785,447) (1,609,447,740)
Net cash used in financing activities (1,817,785,447) (1,609,447,740)
Increase/(Decrease) in Cash and Cash Equivalents 8,292,253,646 (75,727,622)
Cash and Cash Equivalents at the Opening 16,703,964,704 15,689,575,448
Cash and Cash Equivalents at the Opening of SFRL 127,850,615 -
Cash and Cash Equivalents at the Opening of SHNL 84,685,564 -
Cash and Cash Equivalents at the Closing 25,208,754,529 15,613,847,826
Net Operating Cash Flow per Share (NOCF) 11.26 7.76
Number of Shares used to compute NOCF 789,008,466 789,008,466

Sd/- Sd/- Sd/-

Samuel S Chowdhury Ratna Patra Tapan Chowdhury
Chairman Vice Chairman Managing Director

Sd/- Sd/-
Muhammad Zahangir Alam Khandaker Habibuzzaman
Chief Financial Officer Company Secretary
 SQUARE PHARMACEUTICALS LTD.
Notes to the Interim Financial Statements
For the 3rd Quarter Ended December 31, 2019

1. Basis of Preparation of the Interim Financial Statements:

These Financial Statements (They) are the unaudited interim Financial statement (here after 'the Interim Financial
Statements') of Square Pharmaceuticals Ltd. for the 3rd Quarter Ended on March 31, 2019 (here after the interim period).
They are prepared in accordance with the Bangladesh Accounting Standard (BAS-34) 'Interim Financial Reporting'. These
financial statement should read in conjunction with the Annual Financial Statements as of June 30, 2018, as they provide an
update of previous reported information.

The accounting policies and presentation used are consistent with those used in the Annual Financials, except where noted
below, Where necessary, the comparative figues have been reclassified or extended from the previously reported Interim
Financial Statements to take into account any presentational changes made in the Annual Financial Statements or in these
Interim Financial Statements.

The preparation of the financial statements requires management to make estimates and assumptions that affect the
reported amounts of revenue, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the Interim
Financial Statement. If in the future such estimates and assumptions, which are based on management's best judgement at
the date of the Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions
will be modified as appropriate in the period in which the circumstances change.
We understand that our business is growing every year that means our assets are performing according to intension of
procurement and in sum up the discounted future cash flow from the operation of the assets would be positive if we
dispose those assets at the date of financial reporting. Bur presently we have on intension to dispose these assets, so it is
not required to record the impairment gain as provisions of BAS-36.
The company operates in industries where significant seasonal or cyclical variations in total sales are not experienced
during the reporting period.
The company has no reportable operating segments as per BFRS-8.
Figures have been rounded off to the nearest Taka.

There is no significant even after the end of the interim period that has to be reflected in the financial statements for the
interim period except.

In this Quarter (Q3, 2019), we have received Tk.276.89 crore ( 20.26%) addition as Revenue from Square Formulations Ltd.
and Square Herbal & Nutraceuticals Ltd. due to merger as on January 01, 2019. It has also a substantial positive impact on
the Net Profit of this quarter.

31-03-2019 30-06-2018
2. PROPERTY, PLANT AND EQUIPMENT: Tk. 20,841,052,332
Details of Property, Plant and Equipment and Depreciation as at 31 March 2019 are as follows:
This is arrived at as follows:
Fixed Assets at Cost:
Opening Balance 32,894,007,480 29,863,871,981
Add: Amount of Square Formulations Ltd. due to Merger 3,723,710,402 -
Add: Amount of Square Herbal and Nutraceuticals Ltd. due to Merger 460,443,540 -
Net Addition during the Period/Year 1,473,390,415 4,729,639,101
38,551,551,837 34,593,511,082
Sales/Transfer during the Period/Year - (1,699,503,602)
Closing Balance Tk. 38,551,551,837 32,894,007,480

Accumulated Depreciation:
Opening Balance 14,622,449,518 13,017,303,686
Add: Amount of Square Formulations Ltd. due to Merger 1,618,496,456 -
Add: Amount of Square Herbal and Nutraceuticals Ltd. due to Merger 119,892,548 -
Charged during the Period/Year 1,349,660,983 1,660,856,625
17,710,499,505 14,678,160,311
Sales/Transfer during the Period/Year - (55,710,793)
17,710,499,505 14,622,449,518
Carrying Value Tk. 20,841,052,332 18,271,557,962
 31-03-2019 30-06-2018
3. INVENTORIES: Tk. 4,724,885,107
The break-up is as under:
Raw Materials 1,673,284,740 1,121,094,686
Packing Materials 624,398,305 469,946,615
Work-in-Process 289,000,893 204,086,317
Finished Goods 1,281,043,115 941,732,136
Spares & Accessories 535,478,107 444,000,926
Goods- in-Transit 321,679,947 461,230,103
Tk. 4,724,885,107 3,642,090,783

4. ADVANCES, DEPOSITS & PREPAYMENTS : Tk. 3,225,110,760

This consists of as follows:
Advances: 1,449,698,971 1,023,773,655
Employees 226,806,024 177,166,722
Land Purchase 177,811,887 114,804,755
Suppliers 1,045,081,060 531,802,178
Income Tax - 200,000,000

Deposits: 1,742,629,954 1,069,017,289

Value Added Tax 450,083,188 429,137,122
Earnest Money & Security Deposit 233,563,944 141,832,266
Interest on Fixed Deposit Receipts 1,058,982,822 488,240,998
Others - 9,806,903

Prepayments: 32,781,835 38,556,178

Office Rent 10,706,559 6,385,565
Insurance Premium 22,075,276 32,170,613
Tk. 3,225,110,760 2,131,347,122

5. SHORT TERM LOAN (Unsecured): Tk. 1,561,672,228

This consists of as follows:
(a) Square Textiles Ltd. 1,020,376,322 1,385,741
(b) Square Fashions Ltd. 541,295,906 79,314
(c) Square Denims Ltd. - 2,168,142,032
(d) Square Apparels Ltd. - 780,464,229
(e) Square Herbal & Nutraceuticals Ltd. - 181,904,047
Tk. 1,561,672,228 3,131,975,363

6. CASH AND CASH EQUIVALENTS: Tk. 25,208,754,529

This is made up as follows:
(a) Cash in Hand 46,702,838 4,347,122

(b) Cash at Bank: 25,162,051,691 16,699,617,582

* Current Account 1,740,299,000 1,413,887,145
* STD Account 274,059,673 214,854,684
* Fixed Deposit Account (BD Taka) 20,303,791,517 12,713,244,578
* Fixed Deposit Account (USD) 2,278,432,989 1,936,582,928
* Export Retention Quota Account (USD) 523,859,309 393,523,444
* Margin Held Account (USD) 41,609,203 27,524,803
Tk. 25,208,754,529 16,703,964,704

7. DEFERRED TAX LIABILITY: Tk. 1,349,839,544

This represents provision is made for deferred income tax to pay future income tax liability for temporary differences which
is arrived at as follows:
Opening Balance 1,126,645,973 1,055,679,469
Add: Amount of Square Formulations Ltd. due to Merger 122,021,687 -
Addition during the Period 101,171,884 70,966,504
Closing Balance Tk. 1,349,839,544 1,126,645,973
 31-03-2019 30-06-2018
8. LIABILITIES FOR EXPENSES: Tk. 14,027,461
This consists of as follows:
Accrued Expenses 13,974,561 89,334,542
Audit Fees 52,900 287,500
Tk. 14,027,461 89,622,042

9. LIABILITIES FOR OTHER FINANCE: Tk. 3,406,456,212

This consists of as follows:
Sundry Creditors 1,543,562,924 442,013,565
Income Tax (Deduction at Source) 13,857,160 11,457,165
Retention Money 1,162,730 3,319,330
Workers' Profit Participation Fund and Welfare Fund 1,217,486,908 541,252,736
Income Tax Payable (Note-9.1) 630,386,490 37,146,534
Tk. 3,406,456,212 1,035,189,330

9.1 INCOME TAX PAYABLE: Tk. 630,386,490

This is arrived at as follows:
Opening balance 37,146,534 30,717,014
Add: Amount of Square Formulations Ltd. due to Merger 306,953,766 -
Add: Amount of Square Herbal and Nutraceuticals Ltd. due to Merger 30,466,821 -
Provision made for the Period 2,305,939,017 2,534,562,419
Tax Paid (Including Advance Income Tax during the Period) (2,050,119,648) (2,528,132,899)
Tk. 630,386,490 37,146,534

2018-2019 2017-2018
(Jul'2018-Mar'2019) (Jul'2017-Mar'2019)
10. GROSS REVENUE: Tk. 31,035,096,143

This is made-up as follows:

Local Sales 29,944,002,852 24,625,402,995
Export Sales Equivalent in US $ 12,802,162 (Jul'17-Mar'18 US $ 14,240,024) 1,091,093,291 1,176,438,896
Tk. 31,035,096,143 25,801,841,891

11. COST OF GOODS SOLD: Tk. 13,513,683,420

Materials 9,080,098,372 7,453,656,836

Factory Overhead 4,433,585,048 3,978,958,155
Tk. 13,513,683,420 11,432,614,991

12. SELLING & DISTRIBUTION EXPENSES: Tk. 4,881,044,092

This consists of as follows:

Salaries and Allowances 862,524,946 781,801,378
Travelling and Conveyance 85,062,197 73,244,466
Printing and Stationery 52,423,298 45,791,830
Postage, Telephone, Fax & Telex 40,238,220 29,727,953
Electricity, Gas and Water 19,351,650 17,513,899
Office and Godown Rent 16,126,304 17,000,958
Repairs and Maintenance including car maintenance 291,762,965 263,727,663
Govt. Taxes and Licence Fees 24,765,093 16,350,494
Field Staff Salaries, Allowances, TA and DA 1,217,475,017 1,070,662,141
Marketing and Promotional Expenses 930,564,727 824,467,258
Delivery and Packing Expenses 86,665,983 76,388,981
Export Expenses 77,386,610 64,865,450
Special Discount 803,677,070 694,627,292
Security Services 51,491,975 51,956,752
Depreciation 142,013,230 114,833,212
Other Expenses 179,514,807 152,115,656
Tk. 4,881,044,092 4,295,075,383
 2018-2019 2017-2018
(Jul'2018-Mar'2019) (Jul'2017-Mar'2019)
13. ADMINISTRATIVE EXPENSES: Tk. 866,646,383
This consists of as follows:
Salaries and Allowances 273,710,580 247,092,790
Directors' Remuneration 50,822,009 54,866,881
Travelling and Conveyance 98,689,277 86,461,559
Printing and Stationery 12,324,684 10,706,302
Postage, Telephone, Internet 7,173,710 7,098,127
Electricity, Gas & Water 19,284,921 16,136,887
Tiffin and Refreshment 48,207,832 40,738,101
Repairs and Maintenance 117,120,233 106,257,059
Bank Charges 9,242,022 13,589,011
Insurance Premium 9,902,467 9,050,566
Govt. Taxes, Stamp Duty & Licence Fee 7,220,789 6,075,835
Security Services 33,827,881 29,062,152
Legal Charges 3,115,800 1,907,175
Depreciation 80,356,543 70,331,970
Software & Hardware Support Services 60,651,409 15,691,353
Other Expenses 34,996,226 34,689,205
Tk. 866,646,383 749,754,973

14. OTHER INCOME: Tk. 2,777,740,339

This is arrived at as follows:
Bank Interest 1,137,498,615 782,452,032
Interest on Loan to Sister Concern 138,922,677 37,340,724
Dividend 313,133,178 192,293,722
Commission Received 1,018,758,375 1,370,964,820
Gain on Marketable Securities (Realized) 64,229,169 228,670,830
Foreign Exchange Fluctuation Gain 24,183,659 75,488,676
Others 81,014,666 79,491,586
Tk. 2,777,740,339 2,766,702,390

31-03-2019 30-06-2018
15. RELATED PARTY TRANSACTIONS:
The company did not do any related transactions with it's sister concern other than its subsidiary/associates undertaking viz
Square Textiles Ltd., Square Fashions Ltd., Square InformatiX Ltd., Square Denims Ltd., Square Apparels Ltd., Square Herbal
& Nutraceuticals Ltd.,Square Securities Manament Ltd., Pharma Packages (Pvt) Ltd., Square Formulations Ltd. and AEGIS
Services Ltd. during the year reporting. The summary is as follows:
Receivable/(Payable) Receivable/(Payable)
Square Textiles Ltd. 1,020,376,322 43,053,037
Square Fashions Ltd. 541,295,906 467,089
Square InformatiX Ltd. (102,531) (6,853,013)
Square Denims Ltd. - 2,757,912,580
Square Apparels Ltd. - 929,784,271
Square Herbal & Nutraceuticals Ltd. - 327,272,459
Square Securities Management Ltd. 76,698,627 33,628,743
Pharma Packeges (Pvt.) Ltd. 114,004,444 223,400,000
Square Formulations Ltd. - (3,516,339,451)
AEGIS Servicee Ltd. - (11,009)
2018-2019 2017-2018
(Jul'2018-Mar'2019) (Jul'2017-Mar'2019)
16. KEY MANAGEMENT PERSONNEL COMPENSATION:
During the period, the amount of compensation paid to Key Management Personnel including Board of Directors is as under
(As Para 17 of IAS 24):

Short-Term Employee Benefits 276,680,269 245,508,093

Post-Employment Benefits 21,330,363 6,883,740
Other Long-Term Benefits - -
Termination Benefits - -
Share-Based Payment - -

17. The Contingent Liabilities of the companies as of March 31, 2019 were as follows:

Letter of Credit Liabilities as on 31-03-2019 is Tk. 222.23 crore of Square Pharmaceuticals Ltd. but there is no contingent
liability of the Square Pharmaceuticals Kenya EPZ Limited.