       
 |
 |
Renata declares 50%
cash dividend plus 20% bonus share (stock dividend) |
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DIRECTORS' REPORT
TO THE
MEMBERS
The
Directors of the Company are pleased to present their Report
together with the Audited Accounts of the Company for the year ended
December 31, 2003
BUSINESS ACTIVITIES
Turnover during 2003 was Taka 1,101.1million registering a growth of
21.8%. Cost of goods sold decreased from 58.4% of Net Sales last
year to 53.3% in 2003. Profit after tax was Taka 105.5 million--- a
growth of 45.5%. Earnings per Share (EPS) stood at Taka 227.07
against Taka156.09 last year.
The
following formulations were introduced during the year 2003.
Pharmaceutical Products
|
1. Bactamox* Ped. Drop |
10. |
Furocef* IM/IV Inj. 750mg. |
19. |
Rolac* 30mg. Inj. 1ml. |
|
2. Bactamox* Injection 250mg. |
11. |
Furocef* IM/IV Inj. 1.5gm. |
20. |
Singlin* 0.5mg. FC Tablet |
|
3. Bactamox* Injection 500mg. |
12. |
Linez* 400mg. F.C Tablet |
21. |
Singlin* 1mg. FC Tablet |
|
4. Bigmet* 500mg. F.C Tablet |
13. |
Linez* 600mg. F.C Tablet |
22. |
Singlin* 2mg. FC Tablet |
|
5. Bigmet* 850mg. F.C Tablet |
14. |
Linez* Susp. 100ml. |
23. |
Cefazid* IM/IV 250mg. Inj. |
|
6. Furocef* 125mg. F.C Tablet |
15. |
Odmon* 5mg. Tablet |
24. |
Cefazid* IM/IV 500mg. Inj. |
|
7. Furocef* 250mg. F.C Tablet |
16. |
Odmon* 10mg. Tablet |
25. |
Cefazid* IM/IV 1gm. Inj. |
|
8. Furocef* 500mg. F.C Tablet |
17. |
Rolac* 10mg. Tablet |
27. |
Ceftipime* IM/IV 500mg. Inj. |
|
9. Furocef* Susp. 70ml. |
18. |
Rolac* 10mg. Inj. 1ml. |
28. |
Ceftipime* IM/IV 1gm. Inj. |
*
Trade Mark
Animal
Health Products
|
1. Nitronex Injection 34% 30 ml |
|
2. Tremacid Bolus |
|
3. Diadin Bolus |
|
4. Remolin 45% Powder |
|
5. Renapuine 10% Powder |
FINANCIAL RESULTS
The
Directors take pleasure in reporting the following financial results
of the Company for the year 2003:
|
|
2003 |
|
2002 |
|
|
Taka. |
|
Taka. |
|
Profit
before taxation |
150,434,885 |
|
94,594,207 |
|
Less:
Provision for taxation |
44,873,677 |
|
22,029,962 |
|
Net
Profit after taxation |
105,561,208 |
|
72,564,245 |
|
Add:
Un-appropriated profit brought forward |
152,689,300 |
|
120,505,565 |
|
Profit
available for appropriation |
258,250,508 |
|
193,069,810 |
|
|
|
|
|
|
APPROPRIATION RECOMMENDED: |
|
|
|
|
Tax
holiday reserve |
6,649,168 |
|
17,136,160 |
|
Dividend
proposed: |
|
|
|
|
a) Cash
dividend @ Taka 50/- per Share |
23,244,350 |
|
23,244,350 |
|
b) Stock
dividend (Bonus Share) in the ratio of |
|
|
|
|
one
bonus share for every five (1:5) Shares held |
9,297,740 |
|
- |
|
|
32,542,090 |
|
23,244,350 |
|
Dividend
distribution tax @ 10% of cash dividend |
2,324,435 |
|
- |
|
Balance
Un-appropriated profit carried forward |
216,734,815 |
|
152,689,300 |
|
|
258,250,508 |
|
193,069,810 |
DIVIDEND
There has been considerable increase in the profits available for
distribution. However, as we reported last year, the Company is in
the process of making substantial investments in land, building, and
machinery for BMRE. Thus, the Directors deem it necessary to retain
adequate funds to undertake the investments which are expected to
enhance shareholder-value in the future.
The
Board of Directors is pleased to recommend a cash dividend of Taka
50.00 per ordinary share of Tk.100. This dividend will entail a
payment of Taka 23,244,350. The Board of Directors also recommend
for declaration of Stock Dividend (Bonus Shares) in the ratio of one
Bonus Share for every five shares held (1:5 ) for which an amount of
Taka 9,297,740 will have to be transferred to Share Capital Account.
The appropriation, if approved by the shareholders at the Annual
General Meeting of the Company will absorb Taka 34,866,525 including
10% dividend distribution tax amounting to Taka.2,324,435.
DIRECTORS
The
Directors retiring by rotation under Articles 109, 115 and 116 of
the Articles of Association of the Company are Mr. S. H. Kabir, Mr.
Md. Ziaul Haque Khondker and Dr. Sarwar Ali who, being eligible,
offer themselves for re-election.
AUDITORS
The
Company’s Auditors Messrs Rahman Rahman Huq Chartered Accountants
retire at the thirty first Annual General Meeting and being eligible
offer themselves for reappointment as Auditors for the year 2004
with re-fixation of their remuneration.
SUBSIDIARY OPERATION
BRAC-Renata
Agro Industries Limited was a joint venture Company with 51% shares
held by BRAC and 49% by Renata Limited. On 7 June 2003, Renata
acquired additional 51% shares of BRAC-Renata Agro Industries Ltd.
from BRAC at a negotiated price of Taka 40 million, paying an
additional amount of Taka 18.58 million over the face value.
However, this extra amount was offset by retained earnings and tax
holiday reserve of Taka 23.22 million within BRAC-Renata.
By
law a Company must have more than one shareholder. Therefore the
Chairman and Managing Director of BRAC-Renata, Mr. Syed S. Kaiser
Kabir purchased 51 shares at a cost of Taka 9,524, i.e. Taka 186.7
per share.
Thus Renata Limited became 99.99% owner of BRAC-Renata Agro
Industries Ltd. Subsequent to the Balance Sheet date, the Registrar
of Joint Stock Companies renamed BRAC-Renata Agro Industries Ltd. as
“Renata Agro Industries Limited” on 25 January 2004.
CAPITAL EXPENDITURE
The
following capital expenditure made by the Company during the year
amounted to Tk.52.87 million.
|
|
Taka in millions |
|
Freehold
Land |
9.92 |
|
Building |
1.16 |
|
Plant
and Machinery |
30.46 |
|
Office
Equipments, Furniture & Fixtures |
10.6 |
|
Automobile |
0.73 |
|
|
52.87 |
The
entire investment was made from internally generated funds.
CONSOLIDATION OF ACCOUNT
The
Company is consistently following the code of International
Accounting Standard as adopted by the Institute of Chartered
Accountants of Bangladesh. According to Bangladesh Accounting
Standard-27, (BAS-27) the Company for the first time has presented
all the relevant consolidated financial statements with those of its
subsidiary for reflecting the Group's position.
PERSONNEL
The
Directors record their appreciation for the contribution made by the
employees to the operation of the Company.
ACKNOWLEDGEMENT:
The Board wishes to thank the Shareholders, Officials of the
Drug Administration and other Government officials, Doctors,
Chemists and other Customers, Bankers, the Securities and
Exchange Commission, the Dhaka Stock Exchange Limited and all
well-wishers for their continued support. By the grace of the
Almighty, the Directors look forward to a bright future for the
Company.
On
behalf of the Board of Directors
Syed
S. Kaiser Kabir
Managing Director
May
30, 2004
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