1.

1 Introduction
The company began its journey as Pfizer (Bangladesh) Limited in 1972. It passed two successful
decades as a subsidiary of Pfizer Corporation. In the late 1990s Pfizer had shifted from formulations
to research and in 1993 the company named as Renata. Since its inception it was conceived to
manufacture ethical drugs.

1.2 Company Profile

Renata Limited is publicly listed pharmaceutical company which exports to multiple countries.
Renata is listed on the Dhaka Stock Exchange with a market capitalization of almost US $400
million. Company profile of Renata is appended below:
Type of Company: Listed Public Limited (Dhaka Stock Exchange) Turnover: 5090.3 million.
Market Capitalization: $ 400 million.
Main Business: Renata Limited manufactures, markets, and distributes human pharmaceuticals and
animal therapeutics of Nutrition products (No. 1 in Market in terms of Sales.)
Production Sites: Two production sites. The Mirpur Site is 12 Acres and Rajendrapur Site is 19
Acres.
Quality Recognition: 1S09001- 2000 (DNV) No. of Employees: 3,485 employees.

1.3 Mission
Mission statement describes a company's function and fundamentals. The mission of Renata Limited
is:
"To provide maximum value to our customer, shareholders, Colleagues and communities where we
leave and work"
The mission statement articulates the company's purpose both for the organization, for the public as
well.

1.4 Vision
Vision is the ultimate goal of an organization. The vision of Renata is as under:
"To establish Renata Permanency among the best of Innovative branded generic companies.
By using their innovation Renata permanently wants to establish as a one of the best pharmaceuticals
company

1.5 Scope of the report:

Data were collected from Annual Reports of Renata Ltd. from the year 2003 to 2008.
Three types of financial tools were used to analyze the data which are:
1. To know the current financial performance of the two companies.
2. To know the future prospect of the companies.
3. To compare the financial position of the two companies

2. Statement of value addition

2013
Taka
Turnover and other income

2012
Taka

10,034,450,476

8,788,770,209

Less: Materials cost & Expenses

5,080,969,411

4,646,730,752

Value Added

4,953,481,065

4,142,039,457

Application:
Salaries and benefits paid to Employees

1,067,954,907

21.6

873,039,472

21.1

Duties, VAT and Tax paid to Government Exchequer

1,968,031,994

39.7

1,565,223,965

37.8

429,297,480

8.7

370,881,897

9.0

Contribution to WPPF

94,267,953

1.9

85,618,793

2.1

Tax holiday reserve (net)

42,887,265

0.9

75,165,779

1.8

Dividend to Shareholders

353,023,430

7.1

240,055,938

5.8

Retained by the Company

998,018,036

20.1

932,053,613

22.5

4,953,481,065

100.0

4,142,039,457

100.0%

Interest paid to Lenders

Total

Salaries and benefits paid to Employees

Tax holiday reserve Dividend to

Duties, VAT and Tax paid to Government Exchequer Interest paid to

Shareholders Retained by the

Lenders

Company

Contribution to WPPF

21.6%

21.1%

20.1%

22.5%

7.1%

5.8%

0.9%
1.9%
8.7%

1.8%

2013

2.1%
9.0%

2012

39.7%

37.8%

3. Statement of changes in equity

For the year ended 31 December 2013

Figures in Taka

Balance at 01 January 2012

Share

Revaluation

Tax holiday

Retained

Total

capital

surplus

reserve

earnings

225,935,000

158,434,421

56,483,750

(56,483,750)

Cash dividend paid

(135,561,000)

(135,561,000)

Deferred tax on revaluation surplus

157,382

157,382

Depreciation adjustment on revalued assets

(635,885)

635,885

Total comprehensive income for the year

- 1,247,275,330

1,247,275,330

Tax holiday reserve

75,165,779

(75,165,779)

Balance at 31 December 2012

282,418,750

157,955,917

206,609,359

4,423,495,722

5,070,479,748

Balance at 01 January 2013

282,418,750

157,955,917

206,609,359 4,423,495,722

5,070,479,748

70,604,680

(70,604,680)

Cash dividend paid

(169,451,250)

(169,451,250)

Deferred tax on revaluation surplus

157,382

157,382

Depreciation adjustment on revalued assets

(635,885)

635,885

Total comprehensive income for the year

- 1,393,928,731

1,393,928,731

Tax holiday reserve

42,887,265

(42,887,265)

353,023,430

157,477,414

249,496,624

5,535,117,143

6,295,114,611

Stock dividend issued

Stock dividend issued

Balance at 31 December 2013

131,443,579 3,442,795,036

4. Auditors Report to the Shareholders of Renata Oncology Limited

3,958,608,036

We have audited the accompanying financial statements of Renata Oncology Limited which comprise the
Statement of Financial Position as at December 31, 2013 and a summary of significant accounting policies
and other explanatory notes.

4.1 Management Responsibilities for the Financial Statements

Management of Renata Oncology Limited is responsible for the preparation of financial statements that give a
true and fair view in accordance with Bangladesh Financial Reporting Standards and for such internal control
as management determines is necessary to enable the preparation of financial statements that are free from
material mis-statement, whether due to fraud or error.
4.2 Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors' judgment including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments; the auditor considers internal control relevant to the entitys preparation and fair
presentation of
The financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.

5. Renata Oncology Limited Statement of Financial Position

As on December 31, 2013

EQUITY & LIABILITIES

Notes

Share Capital
Other Payables (Renata Limited)

Amount in Taka

4.0
6.0

80,000,000
73,984,168

Others

11,500

Total

153,995,668

PROPERTY & ASSETS

Fixed Assets at cost

5.0

79,912,400

Capital Work-in-Progress

73,719,168

Deferred Expenses
Cash and Bank Balances

7.0
8.0

276,500
87,600
364,100

Total

153,995,668

As per our report of date annexed

Director

Dhaka, March 25, 2014

Chairman

(S.P. CHOWDHURY & CO.)

Chartered Accountants

6. Activities carried out during the year

The committee reviewed the Internal Audit Reports, Financial Statements, and the External Audit
Report. The Committee did not find any material deviation, discrepancy, or any adverse
findings/observations in the reporting.

6.1 Independent Auditors Report to the Shareholders of Renata Limited.

We have audited the accompanying financial statements of Renata Limited (the Company),
which comprise the statement of financial position as at 31 December 2013, statement of
comprehensive income, statement of changes in equity and statement of cash flows for the year
then ended and a summary of significant accounting policies and other relevant explanatory
notes thereon.

6.2 Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Bangladesh Accounting Standards (BASs) and Bangladesh Financial
Reporting Standards (BFRSs) and for such internal control as management determines is
necessary to enable
The preparation of financial statements that are free from material misstatement whether due to
fraud or error.

6.3 Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Bangladesh Standards on Auditing (BSAs). Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entitys preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An

audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.

7. Investment in subsidiaries
Consolidated and Separate Financial Statements as per BAS 27 is to enhance the
relevance, reliability and comparability of the information that a parent entity provides
in its separate financial statements and in its consolidated financial statements for a
group of entities under its control. The information that an entity must disclose to
enable users of the financial statements to evaluate the nature of the relationship
between the entity and its subsidiaries.
2013
No. of
shares

Renata Agro Industries Limited (Note-7.1)

Purnava Limited (Note-7.2)
Renata Oncology Limited (Note7.3)

Value
Taka

2012
Value
Taka

419,949

60,570,476

60,570,476

24,999

2,499,900

2,499,900

7,999,900

79,999,000

8,444,848

143,069,376

63,070,376

7.1 Dividend paid to non-resident shareholders

Dividend paid to non-resident shareholder, Business Research International Corp. Inc. during the
year 2013 was Taka 29,476,320 equivalent to US$ 377,949.99 for their 6,140,900 share.

7.2 Investment in subsidiary Company-Renata Agro Industries Limited

Renata Limited has aquired 99.99% equity interest in Renata Agro Industries Limited (419,949
ordinary shares of Taka 60,570,476) on 7 April 2001. An amount of Taka 60,570,476 as purchase
cost of shares issued against acquisition of this subsidiary has been shown as investment in
subsidiary at cost as per BAS 27. Renata Limited and Renata Agro Industries Limited have been
operating under common control.

7.3 Investment in subsidiary Company-Purnava Limited

Renata Limited has aquired 99.99% equity interest in Purnava Limited (24,999 ordinary shares
of Taka 100 each) on 16 September November 2004. An amount of Taka 2,499,900 being face
value of shares issued against acquisition of this subsidiary has been shown as investment in
subsidiary at cost as per BAS 27. Renata Limited and Purnava Limited have been operating
under common control.

7.4 Investment in subsidiary Company-Renata Oncology Limited

Renata Limited has aquired 99.99% equity interest in Renata Oncology Limited (7,999,900
ordinary shares of Taka 10 each) on 12 August 2012. An amount of Taka 79,999,000 being face
value of shares issued against acquisition of this subsidiary has been shown as investment in
subsidiary at cost as per BAS 27. Renata Limited and Renata Oncology Limited have been
operating under common control.

7.5 Share capital

7.6.1 Authorized share capital
100,000,000 Ordinary shares of Taka10 each.
7.6.2 Issued, subscribed and paid up capital
1,294,260 Ordinary shares of Taka10 each issued for cash.
1,724,490 Ordinary shares of Taka10 each issued for consideration other than cash. 32,283,593
Ordinary shares of Taka10 each issued as bonus shares.
hese shares are listed with Dhaka Stock Exchange Limited and quoted at Taka 722 per share on
31 December 2013.

8. Future Opportunity of Ranata limited

There are many future opportunity of Renata limited. These are given below..
1.
2.
3.
4.
5.
6.
7.

Developing market area (EU, USA, China, etc.)

They can lead against weak competitor.
They always try to higher dynamic young people so that output will come more.
Attain different trade fare and get new idea related with todays business.
They can give extra facility to gain customers satisfaction.
The students as customers through some special offers.
Scope of expansion on of business

Opinion
In our opinion, the financial statements prepared in accordance with the Bangladesh Accounting
Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs), give a true and fair
view of the financial position of Renata Limited as at 31 December 2013 and the results of its
financial performance and its statement of cash flows for the year then ended and comply with
the Companies Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and
regulations. In our opinion, the financial statements present fairly, in all material respects, the
financial position of Renata Oncology Limited which comprise the Statement of Financial
Position as at December 31, 2013, and all other related notes for the year then ended in
accordance with Bangladesh Financial Reporting Standards and comply with the Companies Act
1994 and other applicable laws and regulations.
We also report that:
1. Awe have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit and made due
verification thereof;
2. in our opinion, proper books of account as required by law have been kept by the
Company so far as it appeared from our examination of those books;
3. the statement of financial position and statement of comprehensive income along with the
annexed notes 1 to 42 dealt with by the report are in agreement with the books of
account; and
The expenditure incurred and payments made were for the purposes of the Company's business.

CONCLUSION

From the total analysis, we can summarize that Renata Ltd. has been doing pretty good
throughout the years. It is true that last year their return did decline but it is still pretty much
satisfactory. Therefore, we can conclude that Square Pharmaceuticals Ltd. is a good enough
company to invest on. The Renata Pharmaceuticals Ltd. financial analysis indicates that it has
been also doing pretty good throughout the years but not as well as the Renata Ltd.

REFERENCES:

1. Annual Report of Renata Limited 2013

2. Weygandt JJ, KiesoDE, Kimmel PD 2008. Accounting Principles. 8th edition. John Wiley
& Sons, Inc. p 778-802.
3. Van Horne JC, Wachowicz JR. JM 2006. Fundamentals of Financial Management. 12th
edition. FT Prentice Hall. p 125-128.