Research on Market Potential

Accounting practice is an important aspect for the success of any entity especially in today’s competitive business world. Standard accounting practice is one of the most important factors for any organization. It is much more important for   public limited compny as the interest of the stakeholders are directly involved with transparent accounting practice.

Though we acquire the theoretical knowledge of accounting practice elaborately from our instructor in accounting class, but knowing the practical implementation of accounting theory is much more important. We choose SQUARE Pharmaceuticals limited as our field of experiment to know how the practical implementation of accounting practice takes place in the real business world.

This term paper present the existing accounting practices in SQUARE Pharmaceuticals Limited. Efforts were invested to analyze and explain the different aspects of accounting practice of the concerned firm. SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been holding the first position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991.   The registered office (48, Moakhali Commercial area Dhaka 1212) of SQUARE Pharmaceuticals Limited centrally controls Accounting procedure under accounting department.

1.1 ORIGIN OF THE REPORT:
After completion of maximum syllabus of Principles of Accounting (A-501) course under the direct supervision of Major Khondaker Saifuzzaman, Faculty member, Faculty of Business studies, Bangladesh University of Professionals,
we make this report. Major Zaman asked us to make a report for the particular fulfillment of our Principles of Accounting
(A-501) course and we select SQUARE Pharmaceuticals Limited to complete our task. The submission date of this report is May 24, 2009. Here one additional thing we would like to mention that we all, the four group members, mutually and collaboratively prepare this report.
1.2 PROBLEM AND PURPOSES
1.2.1 PROBLEM STATEMENT:
This term paper is to analyze how the Accounting practice of SQUARE Pharmaceuticals Limited is performed.

1.2.2 OBJECTIVE:
The objectives of this report are as follows:
      • To know how business organizations carry out the accounting practice in Bangladesh.
      • To understand the actual accounting practices done by the business organization and the deviations from theory.

1.2.3 BENEFIT OF THIS REPORT:
This report gives the reader a clear picture of accounting practices in the perspective of Bangladesh and will help to enrich knowledge on the subject of accounting practices in Bangladesh. Besides, it also guides the reader to establish a link between the theoretical and practical situation.

1.3 SCOPE OF THE STUDY:
This study is made mainly on the basis of the website based observation of SQUARE Pharmaceuticals Limited. As we know the entire accounting process is assorted with diverse standpoints that are why we kept this study limited to few of its aspects like preparation of income statement, statement of retained earnings, statement of cash flow and to end with the preparation of balance sheet.

1.4 SOURCES AND METHODOLOGY
1.4.1 TYPE OF RESEARCH:
We prepared this report pedestal on website based observation of our concerned Organization. We also visit the organization and discussed with the executives of accounting department for better understanding of the data and information.

1.4.2 SOURCES OF DATA:
This report prepared
on the basis of primary and secondary information.   We got the primary data through the interviews and conversations with the concerned Account Officer. Secondary sources include the books, brochures, Periodicals, and particularly from Annual Reports and website of SQUARE Pharmaceuticals Limited. Besides, we also took help from the manuals and other printed materials as well as records related with the topics as the sources for the conceptual part of the report.

1.4.3 ANALYTICAL PROCEDURE:
The empirical parts of the methodology deals with the structured quantitative information that is available and adhered to logical procedures. This part would mostly consist of the following material:
    • Data Analysis (Secondary)
    • Tables
    • Flow charts

1.5 LIMITATIONS:
    • We have faced difficulty to collect data because of the excessive nature of confidentiality maintained by the officials of the firm.
    • . Unavailability of relevant data and information.

1.6 REPORT PREVIEW:
The first section of this report is highlighting the introductory part. Secondly, it gives a glance about the organization and then we give emphasize on functions of the accounting. After then, the current accounting practice of the organization descried elaborately. Subsequently, it also projects the deviation from theoretical aspects. At the ending part we briefly mention the findings and finally we recommend few steps to improve accounting practice for its better effectiveness.

CHAPTER 02

2.0 SQUARE PHARMACEUTICALS LTD - CORPORATE REVIEW
[[[[[[[[2.1 CORPORATE HISTORY:
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 Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 10.55 Billion with about 17% market share (April 2007– March 2008) having a growth rate of about 28.60%.
SQUARE Pharmaceuticals Limited has extended its range of services towards the highway of global market. It is pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products. This extension in business and services has manifested the credibility of Square Pharmaceuticals Limited.
2.2 VISION, MISSION, OBJECTIVES AND CORPORATE FOCUS:

VISION:
We view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.

MISSION:
Our Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large.
OBJECTIVES:
Our objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by our vision.